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Project Report On

RELIANCE LIFE INSURANCE COMPANY LIMITED

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

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

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EXECUTIVE SUMMARY

Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100 percent shareholding in AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance Company Limited is officially launched on February 1, 2006. This was after obtaining the required regulatiry approvals from the Registrar of Companies and the Insurance Regulatory and Development Authority. Reliance Life Insurance is the part of the Reliance Capital. Reliance Life Insurance has plenty of plans on the anvil. It has also 118 branches, with strong presence in South and a bouquet of products catering savings protection and investment need of individuals and corporate. The head-office of it is at Chennai. The company has already added 600 employees in addition to the 1000 plus staff of the erstwhile AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance aims to be the consumer’s preferred life insurer by understanding and meeting his needs. Think Bigger, Think Better!

INDEX

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CHAPTER SUBJECT NO. 1 INSURANCE INDUSTRY 1.1 Meaning of Insurance 1.2 Importance of Insurance 1.3 Difference between Insurance and Assurance 1.4 Principles of Insurance 1.5 History of Insurance 1.6 Time line in Insurance history 1.7 Meaning of Life Insurance 1.8 History of Life Insurance 1.9 Key features of Life Insurance 1.10 Benefits of Life Insurance 1.11 Role of Life Insurance in the growth of economy 2 INTRODUCTION TO THE COMPANY 2.1 About Reliance Life Insurance 2.2 History 2.3 Journey so far 2.4 Role of IT at Reliance Life Insurance 2.5 Mission 2.6 Core Values 2.7 Future Plans 2.8 Head – Office 2.9 Branches 3 PRODUCT MIX 3.1 Traditional Plans 3.2 Unit linked Plans 4 HUMAN RESOURCE MANAGEMENT 4.1 Recruitment 4.2 Selection 4.3 Training and Development 4.4 Career Development 4.5 Communication 4.6 Incentives 4.7 Services 4.8 Performance Appraisal 4.9 Organizational form and Structure 4.10 Department

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MARKETING DEPARTMENT 5.1 Distribution Channel 5.2 Promotional Programmes and Target segment 5.3 Comparative Study RESEARCH METHODOLOGY 6.1 Objective of the study 6.2 Questionnaire 6.3 Sampling Method and Sampling Size 6.4 Limitations 6.5 Analysis of Questionnaire 6.6 SWOT Analysis FINANCE DEPARTMENT CONLUSION BIBLIOGRAPHY AND REFRENCES APPENDIX

63 66 71 79 79 80 82 83 96 99 106 108 110

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CHAPTER-1 INSURANCE INDUSTRY

1.1 MEANING OF INSURANCE

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Insurance can be defined as a “legal contract between two parties whereby one party called insurer undertakes to pay a fixed amount of money on the happening of a particular event. which may be certain or uncertain. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. 1. as people prefer small fixed liability instead of big uncertain and changing liability. Insurance is desired to safeguard oneself and one’s family against possible losses on account of risks and perils. 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. Insurance is a collective bearing of risk.” The other party called insured pays in exchange a fixed sum known as premium.Insurance may be described as a social device to reduce or eliminate risk of loss to life and property.com 7 .

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

Thesis. etc. So first we understand what is insurance? How the word ‘insurance’ is different from the word ‘assurance’? etc. fire. In life insurance.com 9 . The insured event was bound to happen sooner or later under assurance but the event insured against may or may not happen under insurance. we have to start with the basics of insurance. 1.India is very low in both life and non-life segment so there is lot potential to be tapped. On the other hand the word insurance was used to denote indemnity type of insurances where the insurance company was liable to pay only in case of the loss damage the property. The word assurance indicated certainty. Projects.3 DIFFERENCE BEETWEN INSURANCE AND ASSURANCE Assurance is older in history and it was used to describe all types of insurances. there is an assurance from the insurance company to make payment under the policy either on the maturity or at earlier death. the 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. Dissertation – projectsparadise. From 1826. Before starting the discussion on insurance industry and related issues.

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

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

The early history of insurance in India can be traced back to the Vedas. is found in the Rig Veda. Thesis. which were later repaid with interest when the goods arrived safely. The concept of insurance as we know today took shape in 1688 at a place called Lloyd’s Coffee House in London where risk bearers used to meet to transact business. The insurance Projects. These companies were empowered to write fire and life insurance as well as marine. Dissertation – projectsparadise. The Aryans practiced some form of ‘community insurance’ around 1000 BC.com 12 . Life insurance in its modern form came to India from England in 1818. With a view to providing fire insurance facilities. The Great Fire of London in 1966 caused huge loss of property and life.The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders used to bear risk of the carvan by giving loans. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. Marine insurance companies came into existence by the end of the eighteenth century. 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 Sanskrit term ‘Yogakshema’ (meaning well being). Dr. the name of Life Insurance Corporation of India’s corporate headquarters. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office.

By the mid. As a result the government decided to nationalize the life assurance business in India. The first Indian insurance company.1950s there were 154 Indian insurers. the first comprehensive legislation governing both life and non-life branches of insurance were enacted to provide strict state control over insurance business. which came into existence between 1818 and 1869. The nationalization of life insurance was followed by general insurance in 1972. 16 foreign insurers. The Life Insurance Corporation of India (LIC) was set up in 1956. Insurance business flourished and so did scams. Dissertation – projectsparadise.com . Thesis.companies. and 75 provident societies carrying on life insurance business in India. came into existence in 1870 to cover Indian lives at normal rates. 1938.6 TIME LINE IN INSURANCE HISTORY (MAJOR LANDMARKS) 1818 British introduced the life insurance to India with the 13 Projects. 1. This amended insurance Act looked into investments. irregularities and dubious investment practices by scores of companies. The Insurance Act. the Bombay Mutual Life Assurance Society. treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent. expenditure and management of these companies.

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

the insured. Royal Sundaram was the first non-life private player to sell an insurance policy. although the owner and Projects.com 15 . ICICI Prudential.1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of the insurance market in India. and the owner of the policy (policyholder). Dissertation – projectsparadise. Thesis.7 MEANING OF LIFE INSURANCE There are three parties in a life insurance transaction: the insurer. 1. 2001 2002 Bank allowed to sell insurance plans as TPAs enter the scene. HDFC were first private players to sell insurance Policies. 2000 IRDA started giving license to private insurers. insurers start setting non-life claims in the cashless mode.

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

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

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

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

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

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

if the policy were surrendered before the insured's death.com 22 . 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. Dissertation – projectsparadise. This feature allows the policy owner an easily accessible loan in times of need or opportunity. 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. 9) Disability Waiver of Premium Projects. individuals often purchase term life insurance. It equals the amount a policy owner would receive. Thesis. one of which is toward the purchase of additional coverage. called paid-up additions. after any applicable surrender charges. If one owns a term policy. 8) Conversion from Term to Permanent: When in need of temporary protection. 5) Dividends: Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company's divisible surplus. 7) Policy Loans: Some life insurance policies allow a policy owner to apply for a loan against the value of their policy.

Life Insurance policies thus decrease the total taxable income of an individual. Projects.10 BENEFITS OF LIFE INSURANCE 1) Risk cover: Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of the future.com 23 . Dissertation – projectsparadise. 2) Tax Deduction: Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to one lakh rupees. It guarantees that coverage will stay in force and continue to grow 1.Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an additional cost. 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. 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. 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. Moreover the cash value can be used as an additional income in the old age. Dissertation – projectsparadise. 5) Educational Needs: Similar to retirement planning the cash values that flow from ones life insurance schemes can be utilized for educational needs of the insurer or his children. Through investments in the Government sector and socially.oriented sectors the Industry has contributed immensely to the nation's development. 1. Projects.3) Loans: An individual can easily access loans from different financial institutions by pledging his insurance policies. The ventures initiated by the industry in the areas of Mutual Fund.com 24 .

Thesis. CHAPTER-2 INTRODUCTION TO THE COMPANY Projects. To protect the country's foreign exchange reserves.Housing Finance has done exceedingly well in recent years.com 25 . the reinsurance arrangement are so organized that maximum retention is made possible within the country while at the same time protecting interests of the policy holders. Dissertation – projectsparadise.

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

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

All the existing policy contracts also stand transferred to the Reliance Life Insurance entity with all the original contractual terms and commitments intact. Thesis. and the formal transfer of shares took place in October 2005. 2.(ADAG) – announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited. Dissertation – projectsparadise. Nandgopal participates in a one-day conference on growth opportunities through Distribution Matrix: Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100 percent shareholding in AMP Sanmar Life Insurance Projects.com 28 . 2006 January 17: ‘Optimising Mr. The company will issue all policy contracts under the Reliance Life Insurance Company limited name.3 JOURNEY SO FAR… 2005 August: Co Ltd.

KV Srinivasan and Mr. Dissertation – projectsparadise. Nandgopal. at the Trapezium. Amitabh Chaturvedi and Mr. February 26: A Puja held at the Churchgate office situated in Express Building. March 6: Shifting to the new premises at Churchgate commences. February 1: Rliance Life Insurance officially launched. inaugurated by their CEO Mr. Nelson Manickam Road. March 7: The new office at Chennai. Thesis. Mr. February 16. Amongst those who participate are the CEO. 14 ‘E’ Road. First Floor.com 29 . 4th Floor.4 ROLE OF INSURANCE IT AT RELIANCE LIFE 1) World Class Data Centre: They plan to establish a Primary Data Centre at Navi Mumbai (Dhirubhai Ambani Knowledge City) which will cater to their company needs across India. 2. with fail-over capability to their Chennai Data Centre Projects. Regional Managers and Regional Sales Managers. March 1: Churchgate office inaugurated by Mr. Mr.‘Emerging Bancassurance’ organized by the Asia Insurance Post at the Taj President. Mumbai. 18: Strategy meet at the Reliance Management Institute. Functional Heads. Amitabh Jhunjhunwala. Nandgopal. # 39. COO. Mumbai. 17. Sureshbabu also graced the occasion.

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

Customer Alerts will include Welcome/Birthday/Anniversary message. 8) Advisor Lounge: It is a dedicated area for Reliance Life Insurance Agents/Advisors in all the branches across India. where their Advisors can bring in the prospects and can have discussions across the table and they can create and print quotes. Thesis. The Agents/Advisors can use this area to service their existing customers. and Policy Services to their existing customers. A common middleware between these applications will enable Group Life Customers to view their individual Single Life Insurance Plan details taken with Reliance Life Insurance and vice versa. Policy Dispatch Details.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.com 31 . 7) Life and Group Asia: Single Life and Group Life details will be captured and managed by Life and Group Asia. Dissertation – projectsparadise. Agents/Advisors and Lead Generators. 9) Document Management System: Projects. Policy Servicing SMS like Premium Receipt and Renewal Premium reminders etc. Employee Alerts will include Company News and Welcome/Birthday/Anniversary message etc. Products. This Lounge will be equipped with desktops and printers with Internet connectivity.

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

who may be both prospective and existing clientele and from channel partners in Chennai and Mumbai. A state-of-the-art customer care centre will provide continuous. collate feedback and suggestions from the caller.com 33 .7 FUTURE PLANS Forty-four new branches to be opened across the country in the coming months. 2.1) Result Oriented 2) Performance Driven 3) Customer Focused 4) Learning and Development Oriented 5) Employee Centric 6) Informal and Fun 2. Dissertation – projectsparadise.8 HEAD – OFFICE Projects. and a pan India presence with 162 branches in the coming year. It will be launching additional products aimed at providing unparalleled service to its valued clientele. Thesis. responsive services to the caller and promptly address queries.

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

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

Fundamentally the product provide for: Risk cover Investment Health cover 36 Projects. Thesis.1 TRADITIONAL PLAN:Life insurance products are designed to suit the requirements of customers. Dissertation – projectsparadise.3.com .

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

com 38 . Features: a) It is a whole life insurance policy with profits b) Low cost life cover c) Maturity age is 85 year or 99 years last birthday as chosen d) Maturity amount = Sum assured + Vested bonus e) Tax benefit is available Projects. Dissertation – projectsparadise.A.there is no saving element or bonus provision. 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. Thesis. Hence. 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. the premium is very low.

Thesis. This money is payable in equal installments over the last 4 years of the policy term. This is especially true when it comes to paying large sums of money for higher education as and when your son or daughter is studying to become an Engineer. Features: I. 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. Minimum entry age is 20 year and maximum 60 year a) Minimum sum assured is Rs. Dissertation – projectsparadise.3) Reliance Child Plan: This insurance policy is designed for people who wish to save money for a future time when there will be a recurring need for substantial amounts of money. or is perhaps planning to go abroad. a Doctor or specialize in some other field. 25.000.com 39 .

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

25. are characteristics of the policy. 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.00. Thesis. 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. The unique feature of this policy is that life protection continues for five years after you have stopped the payment of premium. 25.000 c) Minimum premium paying term is 10 year and maximum 40 year Projects. 5.000 (entry age below 18 years and no limit for entry age 18 and above) f) Premium mode annual. Dissertation – projectsparadise. This plan also participates in the profits. half yearly.000 or as determined by the minimum premium e) Maximum sum assured is Rs.com 41 .d) Minimum sum assured is Rs.

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

com 43 .c) Maximum premium paying term is 34 year d) Loan facility is not available e) In case of death full sum assured + accrued bonuses up to the date of death is payable immediately f) In case of survival up to maturity date all premium paid g) Rider accident death and critical illness h) Mode of payment is available 7) Reliance Credit Guardian Plan: This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death. Thesis. Dissertation – projectsparadise. home improvement. two wheelers and four wheelers b) In case of death remaining loan amount paid immediately c) In case of survival no benefit is available d) Premium payment option for single and regular is available e) Premium paying term is 2/3 of loan period and remaining period paid by the company 8) Reliance Special Credit Guardian Plan: Projects. Features: a) Loan protection against home.

This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death. Thesis. Dissertation – projectsparadise.com 44 . Features: a) Loan protection against home. disability or critical illnesses. two wheelers and four wheelers b) In case of death remaining loan amount paid immediately c) In case of survival no benefit is available d) Premium payment option for regular and single is available e) Premium payment term is 2/3 of loan period and remaining period paid by the company f) Maturity amount = All the premium paid amount g) Tax benefit is available 3. home improvement.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. Projects.

A small part of the contribution is used for providing life cover and the balance is invested in unit. Dissertation – projectsparadise. while the balance (after the deduction of costs. Thesis. 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. In this way.com 45 . etc.) is used to buy units in a unit trust. expenses. 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. Policyholders can surrender the policy at any time and the surrender value is the selling price of the units purchased by the date of cancellation 9less expense).Each premium paid by the insured person is split: a part is used to provide life assurance cover. Reliance Life Insurance Company Limited has also offered the two Unit Linked Plans. Legal heirs are entitled to the amount of insurance cover and entitled units in case of death of the insured. unit linked policies can go up or down in value. As they are linked to the value of shares. a small investor can benefit from investment in a managed fund without making a large financial commitment.

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 . half yearly and monthly Rs. Dissertation – projectsparadise. Thesis. 1000 (for salary deduction only) and Rs. At the same time your investment premiums provide you with insurance cover. 2500 (standing order/credit card) d) Top up premium minimum 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. ii. iii. iv. 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. Features: a) Minimum entry age is 30 days and maximum entry age is 65 year b) Maximum policy term 40 year and minimum policy term 5 year c) Mode of premium as annual.choice. quarterly. 2500 e) Option of investment fund i.

Contributions provide Income tax savings as well. The Reliance Life Insurance ‘no-worry stay happy’retirementplan. vesting options such as commuting and annuity options. Features: a) Entry age minimum is 18 year and maximum 65 year b) Minimum premium amount Rs.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. 10. a flexible pension product is available for all individuals who are between the ages of 18 and 65.com 47 . Reliance Golden Years Plan is a flexible package that provides freedom of choice in choosing the type of investment.. 10.000 2) Reliance Golden Years Plan: Reliance Golden Years Plan…. life cover. Thesis.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. Reliance Golden Years Plan. 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 CHAPTER – 4 HUMAN RESOURCE MANAGEMENT Projects. iii. 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. ii.i.com 48 . Thesis.

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

which is conducted by the Insurance Institute of India. the validity the license would be 3 years.S.In this company the Sales Manager. Mumbai. After clearing the examination the code will be provided to them and the license will also be given to them. which includes-.C. Dissertation – projectsparadise.com 50 . Projects. the person will become an insurance advisor in the company. In simple words. 4.2 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. who recruits the advisors/agents for selling the products of the company. The Branch Manager. The advisors should have at least passed the S. Thesis. it is the process of differentiating between applicants in order to identify these with a greater likelihood of success in a job. They must pass the prerecruitment examination. examination. 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. After all these requirements. does the recruitment. or any other approved examination body.

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

4.3 TRAINING AND DEVELOPMENT:Training and Development is any attempt to improve current or future employee performance by increasing an employee’s ability to perform through learning usually by changing the employee’s attitude or increasing his/her skills and knowledge. They should have at least sales experience of 3 years. guiding. Thesis. The need for training and development is determined by the employee’s performance deficiency. They should have the capability to handle the team. computed as follows: Projects. 6.Requirements of Sales Manager:The Sales following things1. Their job profile includes recruitment. 5. 3. They should have good communication skill. training. 2.A. Manager should possess the 4. Dissertation – projectsparadise.B. They should be an M. motivating and in turn getting business out of a team.com 52 . The age of them should be between 25 to 35 years.

The 100 hours training is to be conducted at Net Bios Computer Academy whereas the product training is to be conducted at NIS SPARTA. The NIS SPARTA Institute has more than 150 batches and is trained over 3000 agents for most of the private insurance companies. which enabling free interaction between all levels.5 COMMUNICATION Communication is the process through which an individual can exchange their beliefs. it is the process of exchanging the information from one person to another. who are newly recruited. The communication is provided in the following manner: Projects. 4. information. Dissertation – projectsparadise. who are newly recruited.4 CAREER DEVELOPMENT They are also providing career development plans. This institute is approved by IDRA to train agents/advisors. and experience to others. They are providing an open environment. 4. which will identify potential and create avenues for growth.com 53 . things. In simple words. They are also providing the product training to their advisors and Sales Managers.Training & Development = Standard Performance – Actual Performance They are providing 100 hours training to their advisors. Thesis.

com 54 .Projects. Thesis. Dissertation – projectsparadise.

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

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

achievement oriented and challenge loving performance.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.4) Reliance Life Insurance in a team building mode and is looking for performance driven. 4. process related and employee development related initiatives. 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. Thesis. If the performance is best then he/she will be prompted. Dissertation – projectsparadise. structured system of measuring and evaluating an employee’s job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee. which goals and measure financial.com 57 . Projects. organization and society all benefit. Performance appraisal is a formal. They are providing a balanced scorecard approach for strategy deployment and performance measurement. In addition to this. customer focused.

Dissertation – projectsparadise.9 ORGANIZATION STRUCTURE CEO CMO Channel Head Regional Head Branch Head SalesCEO Manager Advisors/Agents Customers FORM AND 4.4.com .10 DEPARTMENT They are providing following areas or departments: 1) Retail Sales 2) Under Writing 3) Actuarial 4) Insurance Operations 5) Customer Service 6) Quality and Processes 7) Human Resources 58 Projects. Thesis.

com 59 .8) Finance CHAPTER – 5 MARKETING DEPARTMENT Projects. Dissertation – projectsparadise. 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. which Reliance Life Insurance Co. is an agency. their emergence may potentially be realignment in the distribution of financial services.5. Although producer groups are in their infancy. Thesis. Ltd is using. Dissertation – projectsparadise. they had increased buying power.com 60 . Independent agents & insurance producer groups are growing in prevalence. Independent shops realized that by pooling production and funding a central support office. The one type of distribution channel. This channel works as follows: Branch Managers Advisors Customers Projects.1 DISTRIBUTION CHANNEL Reliance Life Insurance Company Limited is using five types of distribution channel.

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

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

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

is Reliance Advisor’s Reward Experience.000 3.R.00. Thesis.00.:The full form of R. Microwave.30.000 75.00.50.000 50.000 15. Board of Advisors Projects. Dissertation – projectsparadise.000 1. Maruti Swift Lxi GM Aveo 1.00.A.19L DVD/VCD/MP3 Player Sony Music System LG Refrigerators GL-233 LG Air Conditioner 1T Sony Digital Camcorder Trip to Dubai 3D/4N Hero Honda Splender Maruti Alto Std.E.00.000 2.000 SUPER ACHIEVERS 5.00.000 10. New Advisor Incentive Program 2.000 1.00.000 1.000 75.G.00.000 7.50.00.R.000 Login: 1st April to 31st May ‘06 Issuance till 15th June ‘06 Reliance Life T-Shirt Table Top Clock Leather Bag World Space Radio L.000 20. This programs consists of 1.com 64 .E.4LS 2) R.00.00.000 STAR ACHIEVERS 50.A.

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

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

3 COMPARATIVE STUDY Presently there are 15 Life insurance companies in the country. Although LIC has been dominating the Life Insurance business since past few years the private players have now started to take the momentum.000 50. 2.00.00. Thesis.000 10.com 67 . Projects. who have login the regular premium of Rs. There is only one public sector company LIC and the rest 14 are private sector.50.000 5. Dissertation – projectsparadise. 00.00.00.Level Topaz Pearl Sapphire Emerald Ruby Diamond WRP (Rs) 1.00. 5.000 25.000 15.000 Traditional Products 60% 60% 60% 50% 50% 50% Persistency 80% 80% 80% 85% 85% 85% 3) Elite Club Scheme:In this scheme the advisor.000 will be eligible for the Elite Club Membership.

It is a private sector company. Life Insurance Corporation of India (LIC): Life Insurance Corporation of India is a 100% government held Public Sector Company. The market share for FY 2005-06 was 7. Thesis. It is a private sector company. The company was registered on 31/1/2001.1) 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. HDFC – Standard: HDFC standard is a 74:26 joint venture between HDFC and Standard Life. The company was registered on 24/11/2000. The market share for FY 200506 was 1. Dissertation – projectsparadise. The company was registered on 23/10/2000.87%. The market share for FY 2005-06 was 71. ICICI Prudential Life Insurance: ICICI Prudential Life is a 74:26 joint venture between ICICI and Prudential.com 68 .44%. Kotak Mahindra OLD Mutual: - Projects. The market share for FY 2005-06 was 2. Being the first to be established LIC is the forerunner in the Life Insurance sector.35%. It is a private sector company.89%.

The company was registered on 10/1/2001.11%.87%).79%. It is a private sector company. It is a private sector company. Aviva Life Insurance India: Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur. The market share for FY 2005-06 was 1. Enam (9. Dissertation – projectsparadise. Pallonji & Co and MetLife.Kotak Mahindra OLD Mutual is a 74:26 joint venture between Kotak Mahindra bank and Old Mutual. The company was registered on 6/8/2001. It is a private sector company. Max New York Life: Max New York Life is a 74:26 joint venture between J & Bank.14%. The market share for FY 2005-06 was 1. The company was registered on 14/5/2002.13%) and ING (26 %). Gujarat Cements (14. It is a private sector company. The company was registered on 2/8/2001. The market share for FY 2005-06 was 1. Met Life India: - Projects. Thesis. The market share for FY 2005-06 is 0. ING Vysya Life insurance: ING Vysya Life Insurance is joint venture between Exide (50%).23%.com 69 .

It is a private sector company.56%. The company was registered on 3/8/2001. The market share for FY 2005-06 was 0. Thesis.Met Life India is a 74:26 joint venture between 74:26 JV between J & Bank.31%. The company was registered on 31/3/2001.29%. The TATA AIG Group: TATA AIG group is a 74:26 JV between Tata Group and AIG. Bajaj Allianz Life Insurance Co. The company was registered on 6/8/2001. It belongs to the private sector.It is a private sector company. Sahara India Life Insurance Company Ltd. The market share for FY 2005-06 was 7. The market share for FY 2005-06 was 2.: - Projects. Dissertation – projectsparadise.: Bajaj Allianz Life Insurance Company is a 74: 26 Joint venture between Bajaj Auto limited and Allianz AIG. The market share for FY 2005-06 was 1.40%. SBI Life Insurance Company Ltd: SBI Life Insurance Company is a 74: 26 Joint venture between SBI and Cardiff S.com 70 . Pallonji & Co and MetLife. The company was registered on 12/2/2001.A.

56 7.44 7. The company expects to start operations soon. South Africa.87 71 Projects.35 2. 2) Market Share: - Sr. No 1 2 3 4 Insurer LIC Bajaj Allianz ICICI Prudential HDFC Standard Market Share (%) 71. The market share for FY 2005-06 was 0.First Wholly Indian Owned Private Life Insurance Company. The Company commenced operations from 30th October 2004.06 %. 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. Dissertation – projectsparadise.com . Thesis.

03 Now let’s depict the market share of these players on diagram Projects.89 1.06 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 2.29 1.11 0.com 72 .54 0.79 0.14 1.31 1. Thesis. Dissertation – projectsparadise.4 0.23 1.

Thesis.com . Its market share was approximately 98% before 2000 but after the entry of private players it has significantly decreased. Among private players Bajaj Allianz stands first. HDFC Standard comes third. Rest of the players has market share below 2%. It has the market share of approximately 7. 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.56% in the total market and it constitutes 40% of the market share among private players. SBI Life insurance Company Limited comes fourth. 73 Projects. ICICI Prudential is also one of the fastest growing life insurance companies in India.

com 74 . Thesis. Dissertation – projectsparadise.3) Capital Fund: - Capital Fund of Private Companies ( Rs in Crore ) ICICI Prudential Max New York HDFC Standard Bajaj Allianz Tata AIG Birla Sun Life AVIVA OM Kotak Reliance Life SBI Life Met Life ING Vysya 375 250 218 200 183 180 155 153 126 125 110 110 Projects.

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

2) To improve our ability to sell a financial product like life insurance.6.1 OBJECTIVES OF STUDY 1) To get some good market exposure by dealing with the prospects face to face. Thesis.com 76 . Dissertation – projectsparadise. Projects.

I have used simple. Thesis.2 QUESTIONNAIRE It is most common instrument whether administered in person by phone or online questionnaires are very flexible. 6. I have used open-end questions so that customers can write answer in their own words. I have taken care in the wording and ordering of questions. Projects. I have asked personal questions at last so that respondent does not become defensive.3) To know the perception of the consumer about life insurance. direct. 4) To get a deep knowledge of the financial product like insurance.com 77 . Dissertation – projectsparadise. which provide answers that are easier to interpret and tabulate. unbiased wording questions. 5) To get some information about the market share of Reliance Life Insurance as compared to the giants like LIC and to know the standing of the company in the market. The form of each question is also important. Closed end question include all the possible answers and subjects matters choices among them. which are arranged in a logical order. I have also used closed-end questions.

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

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

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.com 80 . Thesis.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. 5) Another limitation is that there is lack of time. I tried hard to come at conclusion. There are some limitations of this study. Dissertation – projectsparadise. but there is lack of expertise. If I give more time then studies will be more effective. And I tried to give the best results to the research of this report. 3) The attitude of the research might be biased. as the sample size is too small for total population of Ahmedabad city. 2) The opinion expressed by the respondents may be biased. But in spite of their limitation I worked with the enthusiasm. 4) One of the most influencing and most critical limitations is that I am not trained for the research study and this is my first study. 6.

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

Thesis. 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.com 82 . 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. Dissertation – projectsparadise. But some people consider different advantages of a life insurance policy. Some believe that life insurance is an investment so they tend to invest in life insurance. Now let’s see what all people say TAX SAVING RISK COVERAGE RETURN/YIELD Projects.

But this is the general conclusion of 50 people. life insurance is for protection first then for Savings and Tax benefits all those things.Here we can see that majority of the people tend to invest in life insurance for the risk coverage. According to a life insurance expert (Vinod Thakkar ). Also the number of those people who wish to invest for return is also increasing.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. we can get a different result. 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. more and more people are turning towards these products so the Investment motive has been gaining command.com 83 . Return comes last. Saving motive constitutes very small part of the total sample. If we take a larger sample. The next preferred option is Tax Saving. Thesis. As the private players have launched ULIPs. Dissertation – projectsparadise. Q.

The third position is of saving and fourth is Return. which is the main theme of life insurance followed by Tax benefit.40 35 30 25 20 15 10 5 0 ce 1 2 3 en 4 TAX BENEFIT SAVINGS RISK COVER RETURN/YIELD We can see from the table and the graph that the number one motive of people about investing in life insurance is risk coverage. Dissertation – projectsparadise. 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 This is a very crucial question as most of the people are not much familiar about different life insurance plans offered by different life insurance Pr ef er Projects. Thesis. This shows that still people consider other financial tools more viable for return and life insurance is for Tax benefit and risk cover.com 84 .

Thesis. Projects. People tend to invest in life insurance plans to maintain relations though they are not in need of life insurance. Dissertation – projectsparadise.com 85 . 28% persons decides as per the guidance of the agent. SOURCE ON MY OWN FAMILY DECISION EMPLOYER DECIDES AGENT GUIDANCE TOTAL NO. 29 7 0 14 50 ON MY OWN FAMILY DECISION EMPLOYER DECIDES AGENT GUIDANCE Here we can see that majority people (58%) decides on their about investing in life insurance. Here one hazardous factor is the moral hazard. Also sometimes it depends upon the convincing power of the agent. people would invest.companies so people take help of the life insurance agent and as he guides understanding the needs of the individual.

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

Q. Dissertation – projectsparadise. Thesis. It is the main theme of this questionnaire. Projects.Term Assurance Whole Life Endowment Combined ULIPs As it is evident from the chart and the table 38% people prefer combination of Whole Life and Endowment product.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. It gives people double advantage. and after that period the risk cover continues and the rest of the amount would be paid when the person dies. The person would get some amount at the end of the stipulated period.com 87 . for instance 20 years.

Prior to 2000 LIC was the only player in the life insurance market and it had the total market. some people have also turned to private life insurers. Thesis. Now let’s see what people say: Particulars Reliance Life Insurance LIC TOTAL No. Projects. 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. So people had to go to LIC for buying life insurance policy. But after the entry of private players in 2000. Dissertation – projectsparadise. So it has fewer customers as compared to LIC.com 88 . Reliance Life Insurance Company Limited is newly launched company. But the ULIP plans are sold more of Reliance life insurance as compared to LIC in today’s environment.

com 89 . 5 30 15 50 Projects. Thesis.Personal Details: 1) Age (a) 18 to 30 (b) 31 to 50 (c) 51 to 65 Age 18 to 30 31 to 50 51 to 65 TOTAL No. Dissertation – projectsparadise.

18 to 30 31 to 50 51 to 65 As evident from the chart that I have taken a sample of 50. Dissertation – projectsparadise. Projects. Thesis. 60% people are aged between 31 to 50. and remaining 30% people are aged between 51 to 65. Out of which 10% people are aged between 18 to 30.com 90 . 2) Occupation (a) Service (b) Business (c) Profession (d) Housewife (e) Retired Occupation No.

00. 30% are of business men. Thesis. 20% are of professions.00.000 (b) 1.com 91 .000 Projects.000 to 1.Service Business Profession Housewife Retired TOTAL 5 15 10 5 15 50 Service Business Profession Housewife Retired As the evident from the chart that out of 50 respondents 10% are of service men. 3) Income (a) 50. Dissertation – projectsparadise. 10% are of housewives and remaining 30% are of retired.000 (c) More than 5.00.00.000 to 5.

00.00.00.000.00.000 to 1. 50% are earning between 1.000 to 5.000 10 25 15 50 As the evident from the chart out of 50 respondents 20% are earning annually between 50. 50.00.00.00. Dissertation – projectsparadise.00.000 More than 5.000 to 5.00.000 to 1.000 to 5.Income (Per Annum) No.000 More than 5.000.00.com 92 .000 to 1. 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4 Projects.000 TOTAL 50. Thesis.000 1.000 and 30% are earning more than 5.00.00.000 1.

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

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

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

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

10% 4. In line with the objective of protecting the capital against any erosion.-Mar. and Reliance Market Return Plan. Thesis.75% GOI 2006 Projects. The net return credited to policyholders and the asset composition ratios are given in the boxes below.’06) Net Returns during the last 3 months (Jan.’06) Net Returns during the last 12 months (Apr.’05-Mar.com % of total assets 38. Net Returns during last 1 month (Mar.60 6.4% 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.’06) Net Returns since Inception in Feb’03 (Annualized) 0.68% GOI 2006 11.96 97 .75 13.89% Bank Fixed Deposits Asset Name Total Bank Deposit Gilts 6. 61.1) Capital Secure Fund:This fund is for Reliance Golden Years Plan.36% 1. Dissertation – projectsparadise.75% GOI 2006 11.69 40.09% 3.

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

Thesis.’05-Mar.10% Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total % of Total Asset 20 22 53 5 100.07% 13.’06) Net Returns since Inception in Feb’03 (Annualized) 4.83% 13. Dissertation – projectsparadise.Net Returns during the last 3 months (Jan.’06) Net Returns during the last 12 months (Apr.00 Equity Corporate Bonds & Debentures Gilts Bank Deposits 3) Growth Fund:- Projects.-Mar.com 99 .

To take advantage of the bullish trend in the equity market. the details of the portfolio and the net returns are disclosed below. Net Returns during last 1 month (Mar.’06) Net Returns since Inception in Feb’03 (Annualized) 4.’06) Net Returns during the last 12 months (Apr. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low. Thesis.60% 7.00 Projects.90% 21. The asset composition.99% 24. the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund.-Mar.’05-Mar.com 100 . Dissertation – projectsparadise. and Reliance Market Return Plan. All the bonds in the portfolio are top rated.This fund is for Reliance Golden Years Plan.’06) Net Returns during the last 3 months (Jan.04% Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total % of Total Asset 9 40 45 6 100.

Net returns earned since inception and the full portfolio are disclosed below.83% Projects.com 101 .’06) Net Returns during the last 3 months (Jan.’06) Net Returns during the last 12 months (Apr. the entire corpus of the fund was invested in equities.18% 20.’05-Mar. Net Returns during last 1 month (Mar.02% 64.46% 57.-Mar. In line with the stated asset allocation pattern and their view of the market. Dissertation – projectsparadise. Thesis.’06) Net Returns since Inception in Feb’03 (Annualized) 11.Equity Corporate Bonds & Debentures Gilts Bank Deposits 4) Equity Fund:This fund is for Reliance Market Return Plan.

Dissertation – projectsparadise.Asset Name Equity Mutual Fund/Bank Deposits Total % of Total Asset 98.93 1.07 100. Thesis.com .00 Equity Mutual Fund/Bank Deposits CHAPTER – 8 102 Projects.

CONCUSION

After the deep study of insurance sector of India, I can tell that this is the sector, which has most business opportunities perhaps in India.

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Insurance industry is one of the fastest sectors in India. Insurance sector has been growing by 25% to 30% and it is expected to increase by 50% in coming 5 years. After the opening up of the insurance sector, it has become much competitive and insurance awareness among people has increased. As far as the comparison of Reliance Life Insurance and other players is concerned, there are both positive as well as negative impacts on both the sides. For Reliance Life Insurance, the negative aspect is that its market share is low. For private players the negative aspect is that they have to fight with the public sector giant which is established player with a high brand value. But the positive impact is that the life insurance awareness has increased and the business of Reliance Life Insurance has increased.

CHAPTER –

9

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

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

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

5 Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy? (a) Reliance Life Insurance (b) LIC Projects.com 108 .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.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.4.(d) Return/Yield Q. Thesis. Which life insurance policy would you prefer to buy? (a) Term Assurance (b) Whole Life (c) Endowment (d) Combination of Whole Life and Endowment (e) Unit Linked Q.

Dissertation – projectsparadise. Thesis.com 109 .PERSONAL DETAILS 1) Age (a) 18 to 30 (b) 31 to 50 (c) 51 to 65 2) Occupation (a) Service (b) Business Projects.

000 to 1.000 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4 Projects. Thesis.com 110 .000 to 5.000 (c) More than 5.000 (b) 1. Dissertation – projectsparadise.00.(c) Profession (d) Housewife (e) Retired 3) Income (a) 50.00.00.00.

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