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Project Report On
RELIANCE LIFE INSURANCE COMPANY LIMITED
Partial fulfillment of the requirements of two years full time Master of Business Management (MBA)
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Preface--------------------------------------------------- (3) Certificate------------------------------------------------ (4) Acknowledgement-------------------------------------- (5) Executive Summary------------------------------------- (6) Index----------------------------------------------------- (7)
Projects, Thesis, Dissertation – projectsparadise.com
Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100 percent shareholding in AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance Company Limited is officially launched on February 1, 2006. This was after obtaining the required regulatiry approvals from the Registrar of Companies and the Insurance Regulatory and Development Authority. Reliance Life Insurance is the part of the Reliance Capital. Reliance Life Insurance has plenty of plans on the anvil. It has also 118 branches, with strong presence in South and a bouquet of products catering savings protection and investment need of individuals and corporate. The head-office of it is at Chennai. The company has already added 600 employees in addition to the 1000 plus staff of the erstwhile AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance aims to be the consumer’s preferred life insurer by understanding and meeting his needs. Think Bigger, Think Better!
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CHAPTER SUBJECT NO. 1 INSURANCE INDUSTRY 1.1 Meaning of Insurance 1.2 Importance of Insurance 1.3 Difference between Insurance and Assurance 1.4 Principles of Insurance 1.5 History of Insurance 1.6 Time line in Insurance history 1.7 Meaning of Life Insurance 1.8 History of Life Insurance 1.9 Key features of Life Insurance 1.10 Benefits of Life Insurance 1.11 Role of Life Insurance in the growth of economy 2 INTRODUCTION TO THE COMPANY 2.1 About Reliance Life Insurance 2.2 History 2.3 Journey so far 2.4 Role of IT at Reliance Life Insurance 2.5 Mission 2.6 Core Values 2.7 Future Plans 2.8 Head – Office 2.9 Branches 3 PRODUCT MIX 3.1 Traditional Plans 3.2 Unit linked Plans 4 HUMAN RESOURCE MANAGEMENT 4.1 Recruitment 4.2 Selection 4.3 Training and Development 4.4 Career Development 4.5 Communication 4.6 Incentives 4.7 Services 4.8 Performance Appraisal 4.9 Organizational form and Structure 4.10 Department
PAGE NO. 10 11 12 13 15 17 19 20 24 27 28 30 32 32 33 36 36 37 37 38 40 48 53 53 56 56 57 59 59 60 61 61
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7 8 9 10
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
63 66 71 79 79 80 82 83 96 99 106 108 110
Projects, Thesis, Dissertation – projectsparadise.com
CHAPTER-1 INSURANCE INDUSTRY
1.1 MEANING OF INSURANCE
Projects, Thesis, Dissertation – projectsparadise.com
which may be certain or uncertain.
1. Insurance is a collective bearing of risk. Dissertation – projectsparadise. Insurance is a financial device to spread the risks and losses of few people among a large number of people. Thesis.2 IMPORTANCE OF INSURANCE
Projects. It provides financial compensation for the losses suffered due to the happening of any unforeseen events.com
.” The other party called insured pays in exchange a fixed sum known as premium. 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 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. Insurance is desired to safeguard oneself and one’s family against possible losses on account of risks and perils.
new distribution channels. it has improved in terms of efficiency. Today insurance industry is one of the most growing sectors in India. Dissertation – projectsparadise. Also the penetration of insurance in
Projects. Another major issue is the effects on LIC after the entry of private players in the market. The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector.Insurance constitutes one of the major segments of the financial market. This would lead to more capital inflow by foreign partners. Right now the insurance industry has great opportunities in a country like India or China which huge population. There are many issues. There is lot of potential in the Indian Insurance Industry. Thesis. Though market share of LIC has been affected.com
. Rural marketing of insurance. There are number of other hot topics like penetration of Health Insurance. insurance brokers’ regulation. which require study. new product ranges. Insurance services play predominant role in the process of financial intermediary. incentive scheme of development officers of LIC etc. So it offers lot of scope for studying the insurance industry. 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. Government may in near future allow 49% FDI in Insurance.
In life insurance.
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. Dissertation – projectsparadise. we have to start with the basics of insurance. etc. fire.com
. 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.India is very low in both life and non-life segment so there is lot potential to be tapped. The insured event was bound to happen sooner or later under assurance but the event insured against may or may not happen under insurance. The word assurance indicated certainty. 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.
Projects. Before starting the discussion on insurance industry and related issues. From 1826. there is an assurance from the insurance company to make payment under the policy either on the maturity or at earlier death. Thesis.
1. he shall be fully indemnified only to the extent of loss. Dissertation – projectsparadise. the insured is not entitled to make a profit on his loss. The insurer before the settlement of the claim may exercise the right.
(2) Principle of indemnity This means that if the insured suffers a loss against which the policy has been made.The principle of “indemnity” applies to “insurance contracts”(non-life) only. The scope of the word. the insurer is entitled to recover from a negligent third party any loss payments made to the
Projects. insurance is wider. Both the parties should disclose all material information regarding the subject matter of insurance. Thesis.
(1) Principle of “Uberrima Fides” or Principle of utmost good faith It means “maximum truth”.4
PRINCIPLES OF INSURANCE
An insurance contract is based on some basic principles 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. In other words. In other words.com
1.5 HISTORY OF INSURANCE
(4) Principle of causa proxima The cause of loss must be direct and an insured one in order to claim of compensation. Insurable interest is that interest which considerably alters the position of the assured in the event of loss taking place and if the event does not take placed.
(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. Thesis. Dissertation – projectsparadise. he remains in the same old position. The concept of ‘Third Party Claims’ is based on the same principle.com
The early history of insurance in India can be traced back to the Vedas. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office. Dissertation – projectsparadise. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. With a view to providing fire insurance facilities. The Sanskrit term ‘Yogakshema’ (meaning well being). Life insurance in its modern form came to India from England in 1818. Marine insurance companies came into existence by the end of the eighteenth century. the name of Life Insurance Corporation of India’s corporate headquarters. The Great Fire of London in 1966 caused huge loss of property and life. The insurance
Projects. Thesis. 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. which were later repaid with interest when the goods arrived safely.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.com 12
. This coffee house became so popular that Lloyd’s became the one of the first modern insurance companies by the end of the eighteenth century. These companies were empowered to write fire and life insurance as well as marine. is found in the Rig Veda. The Aryans practiced some form of ‘community insurance’ around 1000 BC.
and 75 provident societies carrying on life insurance business in India. irregularities and dubious investment practices by scores of companies. the Bombay Mutual Life Assurance Society.com
1.1950s there were 154 Indian insurers. Dissertation – projectsparadise. Insurance business flourished and so did scams. the first comprehensive legislation governing both life and non-life branches of insurance were enacted to provide strict state control over insurance business. 16 foreign insurers. 1938. The Insurance Act. As a result the government decided to nationalize the life assurance business in India. This amended insurance Act looked into investments. which came into existence between 1818 and 1869. The Life Insurance Corporation of India (LIC) was set up in 1956. expenditure and management of these companies. Thesis. treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent. The first Indian insurance company. By the mid. came into existence in 1870 to cover Indian lives at normal rates. The nationalization of life insurance was followed by general insurance in 1972.6
TIME LINE IN INSURANCE HISTORY (MAJOR LANDMARKS)
British introduced the life insurance to India with the
Bombay Mutual Life Assurance Society is the first India owned life insurer. Thesis. Malhotra committee recommended reentry of private players. The Indian Life Assurance Company Act enacted to regulate the life insurance business.
1993 Malhotra committee was constituted under the chairmanship of former RBI chief R.com
The Insurance Act was enacted. Non-life business nationalized.
Projects. Malhotra to draw a blue print for insurance sector reforms. in Calcutta. Nationalization took place. Government took over 245 Indian and foreign insurers and provident societies. 1850 Non life insurance started with Triton Insurance Company. General Insurance Corporation (GIC) came into being.establishment of the Oriental Life Insurance Company . Dissertation – projectsparadise. N.
Bank allowed to sell insurance plans as TPAs enter the scene.
IRDA started giving license to private insurers. ICICI Prudential. and the owner of the policy (policyholder). although the owner and
MEANING OF LIFE INSURANCE
There are three parties in a life insurance transaction: the insurer. Royal Sundaram was the first non-life private player to sell an insurance policy. Dissertation – projectsparadise.
1. insurers start setting non-life claims in the cashless mode. HDFC were first private players to sell insurance Policies.com
.1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of the insurance market in India.
. The policy does not accumulate cash value. A universal life policy includes a cash account. Dissertation – projectsparadise. unless the owner fails to pay the premium when due.
If you want insurance protection only.
Term life insurance provides for life insurance coverage for a specified term of years for a specified premium.
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. fixed and known annual premiums. guaranteed cash values. Premiums increase the cash account. and a cash value table included in the policy guaranteed by the company.
Whole life insurance provides for a level premium. and not a savings and investment product. and mortality and expense charges will not reduce the cash value shown in the policy.the
person. The primary advantages of whole life are guaranteed death benefits.
Permanent life insurance is life insurance that remains in force until the policy matures. Thesis.
Life insurance may be divided into two basic classes – term and permanent.
Another important person involved in a life insurance policy is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. buy a term life insurance policy.
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. Piracy. Dissertation – projectsparadise. nearly 4.500 years ago. In another part of the world. a number of ships would carry a portion of another ship's cargo so that if one ship was captured. insurance was seen as a preventative measure against piracy on the sea. plan to hold it for at least 15 years.naic. Thesis. and a surcharge to cover the possibility of loss.
Projects. universal life. In effect.com 17
. or freight. ship owners were the insured and lenders were the underwriters. Over 5000 years ago. Check the National Association of Insurance Commissioners website (www. in the ancient land of Babylonia. was so prevalent. the entire shipment would not be lost.If you want to buy a whole life. cargo.org/cis) or your local library for information on the financial soundness of insurance companies. that as a way of spreading the risk.8
HISTORY OF LIFE INSURANCE
Risk protection has been a primary goal of humans and institutions throughout history. or other cash value policy.
1. Such contracts contained three elements: a loan on the vessel. These provided the underpinning for marine insurance contracts. It formalized concepts of “bottomry” referring to vessel bottoms and “respondentia” referring to cargo. Protecting against risk is what insurance is all about. an interest rate. in fact. in China. Canceling these policies after only a few years can more than double your life insurance costs. the Code of Hammurabi granted legal status to the practice. In 2100 BC.
burial societies were formed in the Buddhist period to help families build houses. the name of Life Insurance Corporation of India's corporate headquarters. Insurance in India can be traced back to the Vedas. around 450 A. as well as help survivors monetarily. transportation. flood. early forms of insurance ebbed with the decline of travel and long-distance trade. and even imprisonment. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans.Life insurance came about a little later in ancient Rome.D. or as they were known then. particularly with merchant and artisan guilds. Lloyd's Coffee
Projects. These provided forms of member insurance covering risks like fire. For instance. During the feudal period. death. The type of insurance we see today owes it's roots to 17th century England. But during the 14th to 16th centuries. Thesis. commerce. but aspects of it did continue through the Middle Ages. Lloyd's of London. and to protect widows and children. life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688. disability. And similar to ancient Rome. yogakshema. theft.com
. most of the concepts of insurance were abandoned. is derived from the Rig Veda.. With Rome's fall. and insurance would again reemerge. where burial clubs were formed to cover the funeral expenses of its members.
Modern Insurance Illegal almost everywhere else in Europe. Dissertation – projectsparadise.
Two years later. that when newspapers published names of prominent people who were seriously ill. The key to its success was reducing the opposition from religious groups.
Insurance moves to America The U. And the first life insurance policy for the general public in the United States was issued. in fact.” 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. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston. that life insurance really took off in a big way. The Presbyterian Synod of Philadelphia in 1759. Dissertation – projectsparadise. Gambling was so rampant. Thesis. Reacting against such practices.House. SC. on May 22.com
. was the location where merchants. bets were placed at Lloyd’s on their anticipated dates of death. sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. the infamous New York fire drew people's attention to the need to provide for sudden and large losses. The
Projects. While serving as a means of risk-avoidance. Massachusetts became the first state to require companies by law to maintain such reserves.S. But it wasn't until 80 years later (after 1840). ship owners and underwriters met to discuss and transact business deals. In 1835. 1761. insurance industry was built on the British model. in Philadelphia. life insurance also appealed strongly to the gambling instincts of England's burgeoning middle class.
many societies were founded to insure the life and health of their members. In 1897.great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. wherein the risks are spread among several companies. land diversity and the overwhelming desire to be independent. public liability insurance. Many employers sponsor group insurance policies for their employees. 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. which first made its appearance in the 1880s. Dissertation – projectsparadise. such fraternal orders continue to provide insurance coverage to members. but sickness and accident benefits and old-age pensions. was devised specifically for such situations. as do most labor organizations. providing not just life insurance. During the 19th century. With the creation of the automobile.com
. Thesis. membersonly insurance. gained importance and acceptance? More advancement was made to insurance during the process of industrialization. As America moved from a colonial outpost to an independent force. Even today. Employees contribute a certain percentage of the premium for these policies. while fraternal orders provided low-cost. from a farming country to an
Projects. The practice of reinsurance. Final Thoughts Even though the American insurance industry was greatly influenced by Britain. the British government passed the Workmen's Compensation Act. Contributing to that was America's size.
industrial nation. 3) Death Benefit: The primary feature of a life insurance policy is the death benefit it provides. Insurance became more sophisticated.9 KEY FEATURES OF LIFE INSURANCE
1) Nomination: When one makes a nomination. Permanent policies provide a death benefit that is guaranteed for the life of the insured. provided the premiums have been paid and the policy has not been surrendered. Thesis. offering new types of coverage and diversified services for an increasingly complex country. Dissertation – projectsparadise.com
. you need to assign the policy in favor of that person.
1. 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. The nominee has only the right to receive the policy monies in case of your death within the term of the policy. 2) Assignment: If your intention is that your policy monies should go only to a particular person. the insurance business developed from a small number of companies to a large industry.
Dissertation – projectsparadise. 5) Dividends: Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company's divisible surplus. Either a fixed or variable rate of interest is charged.The cash value of a permanent life insurance policy is accumulated throughout the life of the policy. 7) Policy Loans: Some life insurance policies allow a policy owner to apply for a loan against the value of their policy. This feature allows the policy owner an easily accessible loan in times of need or opportunity. 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. sometimes a provision is available that will allow her to convert her policy to a permanent one without providing additional proof of insurability. Thesis. It equals the amount a policy owner would receive. called paid-up additions. if the policy were surrendered before the insured's death. 9) Disability Waiver of Premium
. after any applicable surrender charges. individuals often purchase term life insurance. 8) Conversion from Term to Permanent: When in need of temporary protection. one of which is toward the purchase of additional coverage.
Projects. Life Insurance policies thus decrease the total taxable income of an individual. 2) Tax Deduction: Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to one lakh rupees.com
. Dissertation – projectsparadise. It guarantees that coverage will stay in force and continue to grow
1.10 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. Thesis.
The ventures initiated by the industry in the areas of Mutual Fund. 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. Moreover the cash value can be used as an additional income in the old age.
Projects. Through investments in the Government sector and socially.3) Loans: An individual can easily access loans from different financial institutions by pledging his insurance policies. Thesis. It has a Consistent profit and dividend paying record accompanied by a steady growth in its financial resources. The industry is recognized as one of the largest financial Institutions in the country.11 ROLE OF LIFE INSURANCE GROWTH OF THE ECONOMY
The Life Insurance Industry has an enviable track record among public sector units. 5) Educational Needs: Similar to retirement planning the cash values that flow from ones life insurance schemes can be utilized for educational needs of the insurer or his children.com
.oriented sectors the Industry has contributed immensely to the nation's development.
1. Dissertation – projectsparadise.
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. Thesis.
CHAPTER-2 INTRODUCTION TO THE COMPANY
Projects. Dissertation – projectsparadise.com
.Housing Finance has done exceedingly well in recent years. To protect the country's foreign exchange reserves.
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. of the Reliance . in terms
. Thesis. Reliance Capital is one of India’s leading private sector financial services companies.Anil Dhirubhai Ambani Group.
of net worth. 2006.
2. 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. the financial arm of Reliance – Anil Dhirubhai Ambani Group
Projects. life and general insurance.com
. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority. proprietary investments. It was in August 2005 that the ball was set rolling when Reliance Capital Limited. private equity and other activities in financial services. Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate. Dissertation – projectsparadise. 1934. Reliance Capital has interests in asset management and mutual funds.2 HISTORY
Reliance Capital Limited announced the launch of its life insurance business on February 1. stock broking. 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. Thesis.
Thesis. and the formal transfer of shares took place in October 2005. All the existing policy contracts also stand transferred to the Reliance Life Insurance entity with all the original contractual terms and commitments intact. The company will issue all policy contracts under the Reliance Life Insurance Company limited name.3 JOURNEY SO FAR…
2005 August: Co Ltd. Nandgopal participates in a one-day conference on growth opportunities through Distribution Matrix: Anil Dhirubhai Ambani Group (ADAG) announces the
acquisition of 100 percent shareholding in AMP Sanmar Life Insurance
2. Dissertation – projectsparadise. 2006 January 17: ‘Optimising Mr.com
.(ADAG) – announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited.
KV Srinivasan and Mr. Mr. Amitabh
. Mr. #
39. 14 ‘E’ Road. inaugurated by their CEO Mr. February 16. First Floor. 17.4 ROLE OF INSURANCE
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. Amongst those who participate are the CEO. COO. Mumbai. Thesis. Sureshbabu also graced the occasion. March 7: The new office at Chennai.‘Emerging Bancassurance’ organized by the Asia Insurance Post at the Taj President. with fail-over capability to their Chennai Data Centre
Projects. February 1: Rliance Life Insurance officially launched. Nandgopal. March 1: Churchgate office inaugurated by Mr. Mumbai. Nandgopal. Dissertation – projectsparadise. Functional Heads. Regional Managers and Regional Sales Managers. Amitabh Chaturvedi and Mr. at the Trapezium.
2. March 6: Shifting to the new premises at Churchgate commences. 4th Floor. Nelson Manickam Road. 18: Strategy meet at the Reliance Management
Institute. February 26: A Puja held at the Churchgate office situated in Express Building.
A customer Relationship Management Tool (CRM) and Lead Management System (LMS) are in progress. and Agent Management System etc. 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. Some of the functions included in their portal are Policy Tracking Systems. Corporate News. 5) R World: 30
Projects. Under Writing Medical System.
3) Customer Care Centre: They will host a centralized Customer Care Centre at Dhirubhai Ambani Knowledge City at Navi Mumbai.com
. which cater services to internal and external queries and complications.within the same business day in occurance if an incident or Disaster happens. Thesis. Dissertation – projectsparadise. Quality Checking System. This will enable their associates to work faster and better with high-speed Internet connectivity and also ensure faster Turn Around Time for their customers. 4) Web Portal: This portal will be an interface between both internal employees and their external users. Life-Asia and Internet Applications.
This Lounge will be equipped with desktops and printers with Internet connectivity.Reliance Mobile R-World will provide online information about their Company. 6) SMS Alerts: SMS Alerts will be provided to their Sales Managers about the latest happenings like Contests and Campaigns. Products. where their Advisors can bring in the prospects and can have discussions across the table and they can create and print quotes. 9) Document Management System: Projects. Policy Servicing SMS like Premium Receipt and Renewal Premium reminders etc. 8) Advisor Lounge: It is a dedicated area for Reliance Life Insurance
Agents/Advisors in all the branches across India. Dissertation – projectsparadise.com 31
. and Policy Services to their existing customers. Policy Dispatch Details. 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. Customer Alerts will include Welcome/Birthday/Anniversary message. Employee Alerts will include Company News and Welcome/Birthday/Anniversary message etc. 7) Life and Group Asia: Single Life and Group Life details will be captured and managed by Life and Group Asia. The Agents/Advisors can use this area to service their existing customers. Agents/Advisors and Lead Generators. Thesis.
2. 11) SAP – ERP Modules: SAP (Finance and HR Modules). 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. Travel and Leave Management Systems. Thesis.6 CORE VALUES
Reliance Life Insurance Company Limited has some core values which are listed as follows:
Projects. The aim of the company is to Think Bigger and Think Better.5 MISSION
The mission of Reliance Life Insurance Company Limited is to be the best in every sphere.DMS will enable both policy issuance and contract servicing through an automated workflow.
2. will automate the Expense. This application will enable them to have a paperless office and thus mitigate the risk of losing vital records/papers.business results. Dissertation – projectsparadise. which yields a faster Turn around Time to both internal and external users.com
. customer care and employee focus.
A state-of-the-art customer care centre will provide continuous. and a pan India presence with 162 branches in the coming year. who may be both prospective and existing clientele and from channel partners in Chennai and Mumbai.7 FUTURE PLANS
Forty-four new branches to be opened across the country in the coming months.8 HEAD – OFFICE
Projects. responsive services to the caller and promptly address queries.1) Result Oriented 2) Performance Driven 3) Customer Focused 4) Learning and Development Oriented 5) Employee Centric 6) Informal and Fun
2. Thesis. Dissertation – projectsparadise.
2. collate feedback and suggestions from the caller. It will be launching additional products aimed at providing unparalleled service to its valued clientele.com
Thesis.Reliance Life Insurance Company Limited.
Projects. They have around 160 branches in the India.com
. Dissertation – projectsparadise. And they have planned to open more branches across the country in the coming months. Chennai – 600 029. First Floor.
They have so many branches and substations in the India. Nelson Manickam Road. The Trapezium. 39.
. Thesis. Dissertation – projectsparadise.
3. Dissertation – projectsparadise. Thesis. Fundamentally the product provide for: Risk cover Investment Health cover
.1 TRADITIONAL PLAN:Life insurance products are designed to suit the requirements of customers.
. Reliance Life Insurance Company Limited has offered 9 traditional plans to the customers. to a certain degree. and do not wish to save for themselves. Since
Projects. it is essential for an agent to understand the requirements of the customer well. In order to suggest the right product. Dissertation – projectsparadise.In every product. It can also be useful to business firms that wish to provide financial security to their business against the sudden loss of partners or valuable manpower. the premiums are calculated and the customer pays accordingly. risk cover is imperative for it to fall under the category of insurance. 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. Thesis. Based on the coverage of the product.
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.there is no saving element or bonus provision. Dissertation – projectsparadise.com
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. 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.A.
b) Minimum premium paying term is 5 year and maximum 20 year c) Tax benefit is available d) Maturity amount = Four equal installment of sum insured in last four year plus vested bonus in the last year e) Loan facility is available
4) Reliance Endowment Plan: -
Projects.000. Minimum entry age is 20 year and maximum 60 year a) Minimum sum assured is Rs.3) Reliance Child Plan: This insurance policy is designed for people who wish to save money for a future time when there will be a recurring need for substantial amounts of money. Features: I. 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.com
. a Doctor or specialize in some other field. or is perhaps planning to go abroad. Thesis. Dissertation – projectsparadise. This money is payable in equal installments over the last 4 years of the policy term. 25.
In a nutshell this plan will keep you financially prepared for all the special occasions in your life . In the event of your untimely death.by eliminating the burden that a shortage of money creates.Reliance Life Insurance’s Reliance Endowment Plan is the key to all your financial needs. your child’s university education or even a new office for your business . your family or your business.your daughter’s wedding. Dissertation – projectsparadise. which you will receive at the end of the policy period. Reliance Endowment Plan also gives you the additional benefit of participating in the company’s profits.com
. It is an inexpensive and easy way to protect you. Thesis. Reliance Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides.
Features: a) Entry age minimum is 5 year and maximum 65 year b) Maturity age minimum is 18 year and maximum 75 year c) Minimum premium paying term is 5 year and maximum 35 year in case of regular and in case of single 15 year
Dissertation – projectsparadise.com 41
.00.000 (entry age below 18 years and no limit for entry age 18 and above) f) Premium mode annual. Thesis. are characteristics of the policy. 25. 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 c) Minimum premium paying term is 10 year and maximum 40 year
Projects.d) Minimum sum assured is Rs. Features: a) Entry age minimum 12 year and maximum 65 year b) Minimum sum assured is Rs. The unique feature of this policy is that life protection continues for five years after you have stopped the payment of premium.000 or as determined by the minimum premium e) Maximum sum assured is Rs. 5. 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. 25. This plan also participates in the profits. half yearly.
. it can be used to meet any immediate financial crisis in the family like your son's college admission. The money is payable in installments.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. substantial life cover. your daughter's engagement. Dissertation – projectsparadise. through regular premium payments. but create. Features:a) Plan with profits b) Minimum entry age is 15 year and maximum is 63 year
Projects. a periodic return of lump sums which become available for reinvestment at higher returns. while providing simultaneously. The advantage of the policy is that they need not part with a sizable amount of money at any one time. Alternatively. a holiday abroad. and renovation of your home or perhaps. The first installment is paid at the end of the 4th year and thereafter at the end of every 3rd year.
.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. two wheelers and four wheelers b) In case of death remaining loan amount paid immediately c) In case of survival no benefit is available d) Premium payment option for single and regular is available e) Premium paying term is 2/3 of loan period and remaining period paid by the company
8) Reliance Special Credit Guardian Plan: Projects.
Features: a) Loan protection against home. Dissertation – projectsparadise. home improvement.
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.com
. 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. home improvement. Thesis. disability or critical illnesses.
Features: a) Loan protection against home.This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death.
As they are linked to the value of shares. etc. 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. A small part of the contribution is used for providing life cover and the balance is invested in unit. Thesis. In this way. which are listed as follows: 1) Reliance Market Return Plan 2) Reliance Golden Years Plan Amongst the above plans the Reliance Market Return Plan is the largest selling plan of the Reliance Life Insurance Company Limited. Dissertation – projectsparadise. Legal heirs are entitled to the amount of insurance cover and entitled units in case of death of the insured. expenses. Reliance Life Insurance Company Limited has also offered the two Unit Linked Plans.Each premium paid by the insured person is split: a part is used to provide life assurance cover.com
. unit linked policies can go up or down in value. 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). while the balance (after the deduction of costs.) is used to buy units in a unit trust. a small investor can benefit from investment in a managed fund without making a large financial commitment.
Dissertation – projectsparadise. half yearly and monthly 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. 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. At the same time your investment premiums provide you with insurance cover. 1000 (for salary deduction only) and Rs. ii.choice. 2500 e) Option of investment fund i. 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. iii. 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. quarterly.com
. 2500 (standing order/credit card) d) Top up premium minimum Rs. iv.
vesting options such as commuting and annuity options. The Reliance Life Insurance ‘no-worry stay happy’retirementplan.000
2) Reliance Golden Years Plan: Reliance Golden Years Plan…. 10. Dissertation – projectsparadise.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.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. life cover. Thesis.com
.. Reliance Golden Years Plan is a flexible package that provides freedom of choice in choosing the type of investment. a flexible pension product is available for all individuals who are between the ages of 18 and 65. 10.
Features: a) Entry age minimum is 18 year and maximum 65 year b) Minimum premium amount Rs. Contributions provide Income tax savings as well. Reliance Golden Years Plan.
. iii. ii.
Capital secure fund – 80% in equity and 20% in government security Balanced fund – 80% in government and 20% in equity
f) No loan facility is available g) Tax benefit is available h) Annuity options i.i. Dissertation – projectsparadise. 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
HUMAN RESOURCE MANAGEMENT
Projects. Thesis. ii.
Projects. The result is a pool of applicants from which new employees are selected.4. Thesis. The process begins when new recruits are sought and ends when their applications are submitted.1 RECRUITMENT
Recruitment is the process of finding and attracting capable applicants for employment.com
. Dissertation – projectsparadise.
The Branch Manager.
4. which includes-. it is the process of differentiating between applicants in order to identify these with a greater likelihood of success in a job. After all these requirements.com
. which is conducted by the Insurance Institute of India. Thesis. Mumbai.S. or any other approved examination body.In this company the Sales Manager. the person will become an insurance advisor in the company. does the recruitment. After clearing the examination the code will be provided to them and the license will also be given to them. Dissertation – projectsparadise. 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 advisors should have at least passed the S.C. In simple words. who recruits the advisors/agents for selling the products of 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. They must pass the prerecruitment examination. the validity the license would be 3 years.
the negotiation will be provided to the applicant.
6) Selection: After clearing all the above steps the applicant should be appointed/selected as a Sales Manager in the company. the applicant should have to make a list of 40 and then start the business with them.com
Projects. Dissertation – projectsparadise. In this step.
4) Negotiation: After clearing the interview with Regional Head.
5) Medical Examination: After that.2) Project 40 Interview: After clearing the personal interview. the project 40 interview will be taken by the Branch Manager. who will check his/her performance. the applicant should be interviewed by the Regional Head. the medical check up should e made to the applicant. Thesis.
3) Interview with Regional Head: After clearing the project 40 interview.
The age of them should be between 25 to 35 years.B. Manager should possess the
4. They should have good communication skill. Dissertation – projectsparadise.com
. They should be an M. 5. computed as follows:
Projects. 6.3 TRAINING AND DEVELOPMENT:Training and Development is any attempt to improve current or future employee performance by increasing an employee’s ability to perform through learning usually by changing the employee’s attitude or increasing his/her skills and knowledge.Requirements of Sales Manager:The Sales following things1. 4. They should have at least sales experience of 3 years. They should have the capability to handle the team.A. motivating and in turn getting business out of a team. guiding. Their job profile includes recruitment. training. The need for training and development is determined by the employee’s performance deficiency. 3. Thesis. 2.
which enabling free interaction between all levels.5 COMMUNICATION
Communication is the process through which an individual can exchange their beliefs. They are providing an open environment. who are newly recruited. which will identify potential and create avenues for growth. it is the process of exchanging the information from one person to another. This institute is approved by IDRA to train agents/advisors.
4. The NIS SPARTA Institute has more than 150 batches and is trained over 3000 agents for most of the private insurance companies. and experience to others. 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. They are also providing the product training to their advisors and Sales Managers.4 CAREER DEVELOPMENT
They are also providing career development plans. information. In simple words.com
. The communication is provided in the following manner:
4. things. who are newly recruited. Thesis.Training & Development = Standard Performance – Actual Performance They are providing 100 hours training to their advisors.
. Dissertation – projectsparadise. Thesis.
Dissertation – projectsparadise.BRANCH
Explanations of the diagram:The communication is flow between Branch to Branch. associates and their families.6 INCENTIVES
Incentives are monetary benefits paid to workmen in recognition of their outstanding performance.7 SERVICES
They are offering following certain services to their employees.
4. and then Branch Head to Regional Head. it flows between Branch Manager to Sales Managers and Sales Managers to Agents/Advisors. Dissertation – projectsparadise. 3) They are creating Reliance Life Insurance family. then different Regional Head to Regional Head. then Regional Head to Channel Head.
Projects. 1) They are providing knowledge sharing and certification practices. 2) They are planned team building and fun events.com
4. Within a branch. which are including sales incentives. Thesis. then to Chief Marketing Officer (CMO). which includes employees. They are providing an aggressive reward and recognition plans. then to Chief Executive Officer (CEO).
customer focused. If the performance is best then he/she will be prompted.
Projects. which goals and measure financial.4) Reliance Life Insurance in a team building mode and is looking for performance driven. organization and society all benefit. 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. In addition to this.com
. Dissertation – projectsparadise.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. Performance appraisal is a formal. Thesis.
4. 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. process related and employee development related initiatives. They are providing a balanced scorecard approach for strategy deployment and performance measurement.
. Dissertation – projectsparadise. Thesis.9 ORGANIZATION STRUCTURE
CEO CMO Channel Head Regional Head Branch Head SalesCEO Manager Advisors/Agents Customers
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
Dissertation – projectsparadise.8) Finance
which Reliance Life Insurance Co.com
. their emergence may potentially be realignment in the distribution of financial services. Dissertation – projectsparadise.5. Independent shops realized that by pooling production and funding a central support office. 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. Thesis. This channel works as follows:
Branch Managers Advisors Customers
Projects. Although producer groups are in their infancy. Ltd is using. The one type of distribution channel. they had increased buying power.1 DISTRIBUTION CHANNEL
Reliance Life Insurance Company Limited is using five types of distribution channel. Independent agents & insurance producer groups are growing in prevalence.
and direct marketing insurance. the advisors will sell the products/policy to customers of the small enterprises. 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.2) Bank Assurance: While a lot of bank relationships with insurance companies have been established. Another type of distribution channel is bank assurance.com
. which are for employee benefits. Dissertation – projectsparadise.
Projects. Thesis. to sell the policy of the company. Banks are failing to incorporate successful sales tactics used to sell other financial services like investments.. This channel is tie up with banks. a research was performed with independent advisors across several broker/dealers and custodians. Through these small enterprises. life insurance sales have been slower than one would expect he primary bank insurance activities have been the distribution of annuities. The interviews revealed that demand is greatest for living trusts among independent advisors.e. This channel is tie up with corporate or small enterprises. credit life.
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. Another type of distribution channel is corporate.
Across all financial services. but many of the traditional full-serve players seem to be letting it go. the dealers will sell the policy to the target customers. Dissertation – projectsparadise. Insurance companies view full-service brokers as a potentially new distribution channel as well. In this channel.4) Rural Benefits:Brokerage firms have gained much of the institutional and personal trust business lost by the banks. These firms have steadily captured assets. Another type of distribution channel is rural benefits. Another type of distribution channel is web world. This channel is tie up with customer database. primarily at the expense of the banks. consumers are expressing a willingness to deal with a variety of providers on the web. 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. which are taken from the customer database. Thesis.
Projects. In this channel. This channel works as a dealership.com
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. are listed in the website.
which are as follows:
1) Shubh – Arambh:This promotional scheme is detailed as follows: SLAB (WRP) ACHIEVERS REWARD
Projects. to sell the more policies.. The promotional programmes are made to motivate the advisors/agents and sales managers to do more business i.2 PROMOTIONAL TARGET SEGMENT
Promotional programmes and target segment are related to each other. Ltd has made three promotional schemes. Thesis. The Reliance Life Insurance Co.5.com
.e. Dissertation – projectsparadise.
New Advisor Incentive Program 2.19L 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.000 20.000 7.00. Dissertation – projectsparadise. Board of Advisors
2) R.000 3.000 1.00.00.000 1.G.000 50.00.000 1. Microwave.com 64
.30.50.00. is Reliance Advisor’s Reward Experience.50.00.000 75.00.R.000 75. Maruti Swift Lxi GM Aveo 1.00.00.000 SUPER ACHIEVERS 5.A.00.00.000 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.:The full form of R.A.E.000 STAR ACHIEVERS 50.R.E.000 2. Thesis. This programs consists of 1.000 10.
R.E. Dissertation – projectsparadise. Program Discovery Series:Criteria There will be six levels in the Discovery Series program A. Thesis. Parameters
3. RARE Club – Loyalty Program The above programs are described as follows 1. Program Board of Advisors:Criteria There will be two levels in the Board of Advisors program A.R.3.A.com 65
. Launch Pad B. Time Period B.A. R.R. Take Off 2.E. Advisor Career Progression 5. Program New Advisor Incentives:Criteria There will be two levels in the New Advisor Incentive program A. Qualification period B. Annual Discovery Series 4.R. R. Business criteria
R. Issuances from 1st Apr ’06 to 15th Apr ‘07 Qualification Criteria
Projects.C. Thesis. The qualification period is I. Qualification for the Global Discovery Series E.E. Privilege Club:Levels A. The criteria for entry into each level will be based on I. Qualification for the National Discovery Series F.A. Product Mix C.R. The top 150 will bb calculated based on WRP (Weighted Recd Premium)
4.A. Business Associate B. Logins from 1st Apr ’06 to 31st Mar ‘07 II.com
. Program Advisor Career Progression:Advisor Career Progression A.E. Business (WRP) II. Sales Manager 5. The qualification criteria will be the same for both the Global and the National Discovery Series D. R. The RARE Club will have 6 different levels B. Dissertation – projectsparadise. Persistency III. R.
Although LIC has been dominating the Life Insurance business since past few years the private players have now started to take the momentum. There is only one public sector company LIC and the rest 14 are private sector.00.com 67
. Dissertation – projectsparadise.000 15.00.
5.00.000 10.000 25.00. 2.Level Topaz Pearl Sapphire Emerald Ruby Diamond
WRP (Rs) 1.50.00.000 50. 00.000 will be eligible for the Elite Club Membership. Thesis.3 COMPARATIVE STUDY
Presently there are 15 Life insurance companies in the country.
Traditional Products 60% 60% 60% 50% 50% 50%
Persistency 80% 80% 80% 85% 85% 85%
3) Elite Club Scheme:In this scheme the advisor. who have login the regular premium of Rs.
The market share for FY 2005-06 was 7. HDFC – Standard: HDFC standard is a 74:26 joint venture between HDFC and Standard Life. Thesis. The company was registered on 23/10/2000. Kotak Mahindra OLD Mutual: -
Projects. The market share for FY 2005-06 was 2. The company was registered on 24/11/2000.1) 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. It is a private sector company.com
. Dissertation – projectsparadise. 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. The market share for FY 200506 was 1.44%. ICICI Prudential Life Insurance: ICICI Prudential Life is a 74:26 joint venture between ICICI and Prudential. It is a private sector company. It is a private sector company. The market share for FY 2005-06 was 71.87%. Being the first to be established LIC is the forerunner in the Life Insurance sector.89%.35%.
Thesis. It is a private sector company. Enam (9. Pallonji & Co and MetLife. Aviva Life Insurance India: Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur. Dissertation – projectsparadise. The market share for FY 2005-06 is 0.com
. The market share for FY 2005-06 was 1. The market share for FY 2005-06 was 1. The company was registered on 10/1/2001.11%. Met Life India: -
Projects. Max New York Life: Max New York Life is a 74:26 joint venture between J & Bank. It is a private sector company. The company was registered on 6/8/2001. It is a private sector company. It is a private sector company.87%). The market share for FY 2005-06 was 1.23%. The company was registered on 2/8/2001.Kotak Mahindra OLD Mutual is a 74:26 joint venture between Kotak Mahindra bank and Old Mutual.79%.
ING Vysya Life insurance: ING Vysya Life Insurance is joint venture between Exide (50%). Gujarat Cements (14.13%) and ING (26 %).14%. The company was registered on 14/5/2002.
SBI Life Insurance Company Ltd: SBI Life Insurance Company is a 74: 26 Joint venture between SBI and Cardiff S.29%.: Bajaj Allianz Life Insurance Company is a 74: 26 Joint venture between Bajaj Auto limited and Allianz AIG.: -
Projects. The company was registered on 3/8/2001. The market share for FY 2005-06 was 2.
The TATA AIG Group: TATA AIG group is a 74:26 JV between Tata Group and AIG.Met Life India is a 74:26 joint venture between 74:26 JV between J & Bank.A.com
. The company was registered on 31/3/2001. The company was registered on 6/8/2001. Bajaj Allianz Life Insurance Co. Pallonji & Co and MetLife. The company was registered on 12/2/2001. It is a private sector company.It is a private sector company. Sahara India Life Insurance Company Ltd. It belongs to the private sector. Dissertation – projectsparadise. Thesis. The market share for FY 2005-06 was 0. The market share for FY 2005-06 was 7.31%.56%. The market share for FY 2005-06 was 1.40%.
The Company commenced operations from 30th October 2004. Thesis.44 7. No 1 2 3 4
Insurer LIC Bajaj Allianz ICICI Prudential HDFC Standard
Market Share (%) 71. The company expects to start operations soon.
2) Market Share: -
Sr. The market share for FY 2005-06 was 0. South Africa. Dissertation – projectsparadise.First Wholly Indian Owned Private Life Insurance Company.06 %. 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 2.87
23 1.29 1. Thesis.14 1.4 0.31 1.54 0.06 0.03
Now let’s depict the market share of these players on diagram
Projects.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.79 0.11 0.89 1.com
Thesis. ICICI Prudential is also one of the fastest growing life insurance companies in India.
Among private players Bajaj Allianz stands first. It has the market share of approximately 7.56% in the total market and it constitutes 40% of the market share among private players. SBI Life insurance Company Limited comes fourth. Its market share was approximately 98% before 2000 but after the entry of private players it has significantly decreased. Dissertation – projectsparadise. Rest of the players has market share below 2%.
Projects. HDFC Standard comes third.1LIC
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.com
Dissertation – projectsparadise.com
.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
. Thesis. Dissertation – projectsparadise.CHAPTER –
Projects. Dissertation – projectsparadise. 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. Thesis.com
I have used simple. which are arranged in a logical order. I have used open-end questions so that customers can write answer in their own words. Closed end question include all the possible answers and subjects matters choices among them. Dissertation – projectsparadise. which provide answers that are easier to interpret and tabulate. Thesis. I have also used closed-end questions. direct. unbiased wording questions.3) To know the perception of the consumer about life insurance. I have asked personal questions at last so that respondent does not become defensive. 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. The form of each question is also important. 4) To get a deep knowledge of the financial product like insurance. I have taken care in the wording and ordering of questions.2 QUESTIONNAIRE
It is most common instrument whether administered in person by phone or online questionnaires are very flexible.
Questionnaire of the customer I have made questionnaire consisting seventeen questions to get customer’s view about life insurance. different magazines. having been collected for another purpose. I have gathered secondary data from website of different operators.3 SAMPLING METHOD AND SAMPLE SIZE
Introduction:Any organization whether big or small.
Primary data: Projects. where thy want to invest. I have asked personal questions at last so that they do not become defensive.
6. newspapers and libraries. Dissertation – projectsparadise.e. Thesis. private or public need different types of information are to know its popularity. up to what amount and since when. I have gathered secondary data and primary data and collected information from the combination of these two data.com 78
Secondary data: Secondary data consist of information that already exists somewhere. I have tried to know their performance i. whether they want to invest.
current and unbiased.
6. accurate.I have taken great care while collecting primary data to answer that it is relevant. I have visited them personally to get data. I have taken a sample of 50 people.
Sample size: I have taken sample size of 50 respondents.com
. The following are the limitation of this research study. Because the population is too large so it is difficult to survey.
I am a human hang. Thesis. Dissertation – projectsparadise. so there is some limitation of the human hangs which is reflected in this research.
. 2) The opinion expressed by the respondents may be biased.5 ANALYSIS OF QUESTIONNAIRE
Here I have formed a questionnaire to study why people go for life insurance.1) The sample size of 50 might not represent the perception of whole population. 3) The attitude of the research might be biased. There are some limitations of this study. Dissertation – projectsparadise. And I tried to give the best results to the research of this report.
6. 5) Another limitation is that there is lack of time. but there is lack of expertise. I tried hard to come at conclusion. But in spite of their limitation I worked with the enthusiasm. Thesis. as the sample size is too small for total population of Ahmedabad city. 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. What is people’s major motive behind investing in life insurance? Do they decide upon their own or they take guidance of an agent? What is their perception about Reliance Life Insurance Company Limited?
Projects. If I give more time then studies will be more effective.
Thesis. Professionals. and some other statistical measures to analyze the questions. Engineers.
Q. and the target group was a mix of people from the society.com
. I asked the questions to Doctors. Target Population:I had conducted this survey among 50 people. 6 questions are close ended and one question is an open ended one.Questions:There are 7 questions in the questionnaire. Analysis:I have used pie charts. Advocates. Dissertation – projectsparadise. Professors.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover (d) Return/Yield
Projects. Out of these 7 questions. and general public.
Some believe that life insurance is an investment so they tend to invest in life insurance.com
.MOTIVE TAX SAVING RISK COVERAGE RETURN/YIELD TOTAL
NO. Some people consider Tax benefit as the main advantage of life insurance. Thesis. But some people consider different advantages of a life insurance policy. While some people believe that it is a compulsory saving. 20 5 23 2 50 There could be any motive of people behind investing in a life insurance policy. Dissertation – projectsparadise. The main purpose of life insurance is the
Risk cover of one’s life. Now let’s see what all people say
TAX SAVING RISK COVERAGE RETURN/YIELD
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.Here we can see that majority of the people tend to invest in life insurance for the risk coverage.
Q. Also the number of those people who wish to invest for return is also increasing. life insurance is for protection first then for Savings and Tax benefits all those things. According to a life insurance expert (Vinod Thakkar ). The next preferred option is Tax Saving.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. Dissertation – projectsparadise. Saving motive constitutes very small part of the total sample.com
. As the private players have launched ULIPs. But this is the general conclusion of 50 people. we can get a different result. If we take a larger sample. more and more people are turning towards these products so the Investment motive has been gaining command. Return comes last. Thesis.
Dissertation – projectsparadise. which is the main theme of life insurance followed by Tax benefit. Thesis.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.
.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
Projects. The third position is of saving and fourth is Return. This shows that still people consider other financial tools more viable for return and life insurance is for Tax benefit and risk cover.
28% persons decides as per the guidance of the agent.companies so people take help of the life insurance agent and as he guides understanding the needs of the individual. Also sometimes it depends upon the convincing power of the agent. Here one hazardous factor is the moral hazard. Thesis.com
. 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.
Projects. people would invest. Dissertation – projectsparadise.
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.
Q. Dissertation – projectsparadise.4. 9 9 7 19 6 50
Projects. 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.There is no contribution of employers in the decision of one’s investment in life insurance. The products range from pure Term Assurance Plans to Unit Linked Insurance Plans. Thesis. Which life insurance policy would you prefer to buy? (a) Term Assurance (b) Whole Life (c) Endowment (d) Combination of Whole Life and Endowment (e) Unit Linked This is another crucial question as there are number of products offered by life insurance companies.com
. We have already explained all these policies ahead. which are relatively new entrant in the market.
.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. and after that period the risk cover continues and the rest of the amount would be paid when the person dies.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. Thesis. The person would get some amount at the end of the stipulated period. It gives people double advantage. for instance 20 years. Dissertation – projectsparadise.
Projects. It is the main theme of this questionnaire.
So it has fewer customers as compared to LIC.com
. Dissertation – projectsparadise. Thesis.Prior to 2000 LIC was the only player in the life insurance market and it had the total market. 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. Now let’s see what people say: Particulars Reliance Life Insurance LIC TOTAL No. 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. So people had to go to LIC for buying life insurance policy. some people have also turned to private life insurers.
. 5 30 15 50
Projects. Dissertation – projectsparadise.Personal Details: 1) Age (a) 18 to 30 (b) 31 to 50 (c) 51 to 65
Age 18 to 30 31 to 50 51 to 65 TOTAL
18 to 30 31 to 50 51 to 65
As evident from the chart that I have taken a sample of 50.
Projects. and remaining 30% people are aged between 51 to 65. Out of which 10% people are aged between 18 to 30. Thesis.com
. Dissertation – projectsparadise. 60% people are aged between 31 to 50.
2) Occupation (a) Service (b) Business (c) Profession (d) Housewife (e) Retired
Thesis.000 (c) More than 5.00.
3) Income (a) 50.com
.000 to 1.000 to 5.00. 20% are of professions.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. Dissertation – projectsparadise.000
Projects.000 (b) 1.00. 30% are of business men. 10% are of housewives and remaining 30% are of retired.
50% are earning between 1.00.000 to 1.000 to 5.000 1.00.000 to 1.000.000.000 and 30% are earning more than 5.000 More than 5. Dissertation – projectsparadise.000 1.00.com
10 25 15 50
As the evident from the chart out of 50 respondents 20% are earning annually between 50.Income (Per Annum)
No.00.000 More than 5.00.000 to 5.000 to 1.00.000 to 5.
4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4
Projects. 40% have 4 family members and remaining 20% have more than 4 family members. Thesis. 30% have 3 family members.Family Members
No. Dissertation – projectsparadise.com
. which have impact on the survival of any organization.
2 3 4 More than 4 TOTAL
5 15 20 10 50
2 3 4 More than 4
As the evident from the chart out of 50 respondents 10% have 2 family members.
6.6 SWOT ANALYSIS
SWOT analysis is the analysis of the internal and external factors. Now let’s make SWOT analysis for reliance Life Insurance Company Limited.
Dissertation – projectsparadise. 4) Strong liquidity from FII was the major reason for the up move. 5) Range of products 6) Reliance has a long and strong history of solvency. so people seems it risky.com
.000 crs worth of securities with RBI by the government. 2) Lack of staff. 3) Private placement of Rs. Thesis.
▼WEAKNESSES: 1) Newly established company. 10. financial stability.☻STRENGTHS: 1) Reliance Life Insurance Company Limited is the part of the Reliance Capital.
Projects. 2) The brand name is enough to sell the products easily. Led to an improvement in market securities.
3) Lack of advertisement. regular and disciplined savings to systematically build up a target fund.5%.
☼ OPPORTUNITY: 1) There is a vast untapped market in India.
Projects. Thesis. 2) As the government has scrapped the rebate on the life insurance premium.com 95
. Dissertation – projectsparadise. The life insurance penetration in India is approximately 2. So it has large potential.
● THREATS: 1) The main threat is from the other players who have grabbed approximately 15% of the market share. the people who used to invest in life insurance for the sole motive of tax benefit may turn to other instruments. 3) The average insurance premium being collected by the company has been growing exponentially year on year. 2) Intention of traditional products is to encourage long term. so most of the customers are not aware of the Reliance Life Insurance.
. which are as follows:
Projects. Thesis. Dissertation – projectsparadise. which Reliance Life Insurance Company Limited has offered.FUND PERFORMANCE:-
There are four fund options.
Net Returns during last 1 month (Mar. The net return credited to policyholders and the asset composition ratios are given in the boxes below. Thesis. In line with the objective of protecting the capital against any erosion. Dissertation – projectsparadise.96
.’06) Net Returns since Inception in Feb’03 (Annualized)
6.10% 4.69 40.-Mar.com
% of total assets 38. and Reliance Market Return Plan.’06) Net Returns during the last 12 months (Apr.’06) Net Returns during the last 3 months (Jan.1) Capital Secure Fund:This fund is for Reliance Golden Years Plan.09% 3.89%
Bank Fixed Deposits Asset Name Total Bank Deposit Gilts 6.68% GOI 2006 11.75% GOI 2006 11.’05-Mar. 61.4% 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.75% GOI 2006
Projects.36% 1.75 13.
Gilts Bank Deposits
2) Balanced Fund:This fund is for Reliance Golden Years Plan. Bank deposits were maintained only for the purpose of liquidity management. Thesis.’06)
Projects. allocation to Gilts was higher than corporate bonds. the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low.47%
. Net Returns during last 1 month (Mar. the details of the portfolio and the net returns are disclosed below. Dissertation – projectsparadise. The asset composition.com
2.Total Gilts Total
61. and Reliance Market Return Plan. Within the fixed income portfolio. To take advantage of the bullish trend in the equity market. All the bonds in the portfolio are top rated.40 100.
Net Returns during the last 3 months (Jan.’05-Mar.00
Equity Corporate Bonds & Debentures Gilts Bank Deposits
3) Growth Fund:-
Projects.’06) Net Returns since Inception in Feb’03 (Annualized)
Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total
% of Total Asset 20 22 53 5 100.-Mar. Dissertation – projectsparadise.83% 13. Thesis.com
.’06) Net Returns during the last 12 months (Apr.07% 13.
the details of the portfolio and the net returns are disclosed below. Dissertation – projectsparadise.’05-Mar.
Net Returns during last 1 month (Mar.-Mar.90% 21. All the bonds in the portfolio are top rated. The asset composition. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low.99% 24.00
Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total
% of Total Asset 9 40 45 6 100. and Reliance Market Return Plan.60% 7. the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund. To take advantage of the bullish trend in the equity market.This fund is for Reliance Golden Years Plan.’06) Net Returns since Inception in Feb’03 (Annualized)
4.’06) Net Returns during the last 3 months (Jan.’06) Net Returns during the last 12 months (Apr.com
18% 20.-Mar.’06) Net Returns since Inception in Feb’03 (Annualized)
Projects.’05-Mar. Dissertation – projectsparadise.com
Net Returns during last 1 month (Mar. Thesis. the entire corpus of the fund was invested in equities.’06) Net Returns during the last 12 months (Apr. Net returns earned since inception and the full portfolio are disclosed below.Equity Corporate Bonds & Debentures Gilts Bank Deposits
4) Equity Fund:This fund is for Reliance Market Return Plan. In line with the stated asset allocation pattern and their view of the market.’06) Net Returns during the last 3 months (Jan.02% 64.46% 57.
Dissertation – projectsparadise.00
Equity Mutual Fund/Bank Deposits
Projects.93 1. Thesis.Asset Name Equity Mutual Fund/Bank Deposits Total
% of Total Asset 98.com
After the deep study of insurance sector of India, I can tell that this is the sector, which has most business opportunities perhaps in India.
Projects, Thesis, Dissertation – projectsparadise.com
Insurance industry is one of the fastest sectors in India. Insurance sector has been growing by 25% to 30% and it is expected to increase by 50% in coming 5 years. After the opening up of the insurance sector, it has become much competitive and insurance awareness among people has increased. As far as the comparison of Reliance Life Insurance and other players is concerned, there are both positive as well as negative impacts on both the sides. For Reliance Life Insurance, the negative aspect is that its market share is low. For private players the negative aspect is that they have to fight with the public sector giant which is established player with a high brand value. But the positive impact is that the life insurance awareness has increased and the business of Reliance Life Insurance has increased.
BIBLIOGRAPHY AND REFERENCES
Projects, Thesis, Dissertation – projectsparadise.com
www.reliancelife.com www.indiainfoline.com www.bimaonline.com www.google.com
Projects, Thesis, Dissertation – projectsparadise.com
.Life Time Magazine of Reliance Life Insurance Net Bios Computer Academy’s Life Insurance Book Broachers of Reliance Life Insurance
Projects. Dissertation – projectsparadise. Thesis.
Dissertation – projectsparadise.Questionnaire
Survey by student of R.M. On Life Insurance
NAME: ___________________________________________ Q.com 107
.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover
Thesis. Which life insurance policy would you prefer to buy? (a) Term Assurance (b) Whole Life (c) Endowment (d) Combination of Whole Life and Endowment (e) Unit Linked
Q.4.2 Rank the above motives according to your preference
MOTIVE OF INVESTMENT TAX BENEFIT SAVINGS RISK COVER RETURN/YIELD Preference 1 2 3 4
Q. Dissertation – projectsparadise.5 Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy? (a) Reliance Life Insurance (b) LIC
.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
1) Age (a) 18 to 30 (b) 31 to 50 (c) 51 to 65
2) Occupation (a) Service (b) Business
Projects. Dissertation – projectsparadise. Thesis.
000 (b) 1.com
. Thesis.00.000 (c) More than 5.(c) Profession (d) Housewife (e) Retired 3) Income (a) 50.00.00.000 to 1.000 to 5.00.000 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4
Projects. Dissertation – projectsparadise.