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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
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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. as people prefer small fixed liability instead of big uncertain and changing liability. which may be certain or uncertain. Dissertation – projectsparadise.2 IMPORTANCE OF INSURANCE
.” 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.
1. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. Thesis. Insurance is a collective bearing of risk. Insurance is desired to safeguard oneself and one’s family against possible losses on account of risks and perils. Insurance is a financial device to spread the risks and losses of few people among a large number of people.
insurance brokers’ regulation. Dissertation – projectsparadise. new distribution channels. Another major issue is the effects on LIC after the entry of private players in the market. Insurance services play predominant role in the process of financial intermediary.com
. So it offers lot of scope for studying the insurance industry. Also the penetration of insurance in
Projects. Today insurance industry is one of the most growing sectors in India.Insurance constitutes one of the major segments of the financial market. The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. There are number of other hot topics like penetration of Health Insurance. The scope of the study of insurance industry of India would be very great as there are ongoing developments in the industry after the opening of the sector. This would lead to more capital inflow by foreign partners. Though market share of LIC has been affected. which require study. Right now the insurance industry has great opportunities in a country like India or China which huge population. There is lot of potential in the Indian Insurance Industry. new product ranges. Rural marketing of insurance. it has improved in terms of efficiency. Government may in near future allow 49% FDI in Insurance. There are many issues. Thesis. incentive scheme of development officers of LIC etc.
The insured event was bound to happen sooner or later under assurance but the event insured against may or may not happen under insurance. Before starting the discussion on insurance industry and related issues.India is very low in both life and non-life segment so there is lot potential to be tapped. Thesis. From 1826. In life insurance. we have to start with the basics of insurance. Dissertation – projectsparadise. So first we understand what is insurance? How the word ‘insurance’ is different from the word ‘assurance’? etc. there is an assurance from the insurance company to make payment under the policy either on the maturity or at earlier death. etc.3 DIFFERENCE
Assurance is older in history and it was used to describe all types of insurances.com
. 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.
1. fire. 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.
(1) Principle of “Uberrima Fides” or Principle of utmost good faith It means “maximum truth”. he shall be fully indemnified only to the extent of loss.com
. Both the parties should disclose all material information regarding the subject matter of insurance.
1. insurance is wider.4
PRINCIPLES OF INSURANCE
An insurance contract is based on some basic principles of insurance. In other words. In other words. The insurer before the settlement of the claim may exercise the right. The scope of the word. the insured is not entitled to make a profit on his loss.The principle of “indemnity” applies to “insurance contracts”(non-life) only. Dissertation – projectsparadise.
(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 insurer is entitled to recover from a negligent third party any loss payments made to the
(2) Principle of indemnity This means that if the insured suffers a loss against which the policy has been made.
The concept of ‘Third Party Claims’ is based on the same principle.
(4) Principle of causa proxima The cause of loss must be direct and an insured one in order to claim of compensation.com
. Thesis. Insurable interest is that interest which considerably alters the position of the assured in the event of loss taking place and if the event does not take placed. The purposes of subrogation are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss.insured.
1. he remains in the same old position.
(5) Principle of insurable interest The assured must have insurance interest in the life or property insured.5 HISTORY OF INSURANCE
Projects. Dissertation – projectsparadise.
Life insurance in its modern form came to India from England in 1818. Dissertation – projectsparadise. With a view to providing fire insurance facilities. Dr. The insurance
Projects. The concept of insurance as we know today took shape in 1688 at a place called Lloyd’s Coffee House in London where risk bearers used to meet to transact business. Thesis. which were later repaid with interest when the goods arrived safely. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office.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. Marine insurance companies came into existence by the end of the eighteenth century. the name of Life Insurance Corporation of India’s corporate headquarters.com 12
. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. The Sanskrit term ‘Yogakshema’ (meaning well being). The Aryans practiced some form of ‘community insurance’ around 1000 BC. The Great Fire of London in 1966 caused huge loss of property and life. is found in the Rig Veda. The early history of insurance in India can be traced back to the Vedas. These companies were empowered to write fire and life insurance as well as marine. 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.
expenditure and management of these companies. treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent. The Insurance Act. came into existence in 1870 to cover Indian lives at normal rates.
1. Insurance business flourished and so did scams. which came into existence between 1818 and 1869. irregularities and dubious investment practices by scores of companies. This amended insurance Act looked into investments.com
. 16 foreign insurers.6
TIME LINE IN INSURANCE HISTORY (MAJOR LANDMARKS)
British introduced the life insurance to India with the
Projects. the Bombay Mutual Life Assurance Society. The nationalization of life insurance was followed by general insurance in 1972. and 75 provident societies carrying on life insurance business in India. The Life Insurance Corporation of India (LIC) was set up in 1956. 1938. Thesis. Dissertation – projectsparadise. As a result the government decided to nationalize the life assurance business in India.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. The first Indian insurance company.companies. By the mid.
Malhotra committee recommended reentry of private players. Nationalization took place. The Indian Life Assurance Company Act enacted to regulate the life insurance business. General Insurance Corporation (GIC) came into being.
The Insurance Act was enacted.
1993 Malhotra committee was constituted under the chairmanship of former RBI chief R. in Calcutta. Government took over 245 Indian and foreign insurers and provident societies. Non-life business nationalized. Bombay Mutual Life Assurance Society is the first India owned life insurer. N.com
. 1850 Non life insurance started with Triton Insurance Company.establishment of the Oriental Life Insurance Company . Dissertation – projectsparadise. Malhotra to draw a blue print for insurance sector reforms.
although the owner and
Projects.1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of the insurance market in India. ICICI Prudential. HDFC were first private players to sell insurance Policies.
Bank allowed to sell insurance plans as TPAs enter the scene.
IRDA started giving license to private insurers. Royal Sundaram was the first non-life private player to sell an insurance policy.7
MEANING OF LIFE INSURANCE
There are three parties in a life insurance transaction: the insurer. and the owner of the policy (policyholder). Dissertation – projectsparadise. Thesis.com
. insurers start setting non-life claims in the cashless mode. the insured.
The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured.the
Life insurance may be divided into two basic classes – term and permanent.
Projects. Premiums increase the cash account. A universal life policy includes a cash account.
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 not a savings and investment product. fixed and known annual premiums. guaranteed cash values. Thesis. buy a term life insurance policy. The policy does not accumulate cash value. and a cash value table included in the policy guaranteed by the company.
Whole life insurance provides for a level premium. and mortality and expense charges will not reduce the cash value shown in the policy.
Term life insurance provides for life insurance coverage for a specified term of years for a specified premium. unless the owner fails to pay the premium when due.
Another important person involved in a life insurance policy is the beneficiary.com
. The primary advantages of whole life are guaranteed death benefits.
If you want insurance protection only. Dissertation – projectsparadise.
Permanent life insurance is life insurance that remains in force until the policy matures.
Dissertation – projectsparadise.8
HISTORY OF LIFE INSURANCE
Risk protection has been a primary goal of humans and institutions throughout history. In 2100 BC. Thesis. Canceling these policies after only a few years can more than double your life insurance costs. an interest rate. In effect.
1.If you want to buy a whole life. the Code of Hammurabi granted legal status to the practice. and a surcharge to cover the possibility of loss. Over 5000 years ago.naic.
Projects. cargo. 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. the entire shipment would not be lost. plan to hold it for at least 15 years. Check the National Association of Insurance Commissioners website (www. was so prevalent. a number of ships would carry a portion of another ship's cargo so that if one ship was captured. or freight. Protecting against risk is what insurance is all about. or other cash value policy. nearly 4. Such contracts contained three elements: a loan on the vessel.com 17
. in the ancient land of Babylonia. It formalized concepts of “bottomry” referring to vessel bottoms and “respondentia” referring to cargo. In another part of the world. that as a way of spreading the risk.org/cis) or your local library for information on the financial soundness of insurance companies. universal life. in China. in fact.500 years ago. insurance was seen as a preventative measure against piracy on the sea. These provided the underpinning for marine insurance contracts. ship owners were the insured and lenders were the underwriters.
The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. But during the 14th to 16th centuries.. the name of Life Insurance Corporation of India's corporate headquarters. Lloyd's of London. These provided forms of member insurance covering risks like fire. early forms of insurance ebbed with the decline of travel and long-distance trade.D. transportation. where burial clubs were formed to cover the funeral expenses of its members.Life insurance came about a little later in ancient Rome. particularly with merchant and artisan guilds. and even imprisonment. is derived from the Rig Veda. For instance. The type of insurance we see today owes it's roots to 17th century England. disability. theft. and to protect widows and children. Thesis. With Rome's fall. flood. or as they were known then. and insurance would again reemerge.
Modern Insurance Illegal almost everywhere else in Europe. During the feudal period. Lloyd's Coffee
Projects. but aspects of it did continue through the Middle Ages. burial societies were formed in the Buddhist period to help families build houses. death. Insurance in India can be traced back to the Vedas. life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688.com
. most of the concepts of insurance were abandoned. And similar to ancient Rome. commerce. yogakshema. Dissertation – projectsparadise. around 450 A. as well as help survivors monetarily.
Thesis. Reacting against such practices.
Insurance moves to America The U. was the location where merchants. on May 22. insurance industry was built on the British model.” 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. ship owners and underwriters met to discuss and transact business deals. life insurance also appealed strongly to the gambling instincts of England's burgeoning middle class. in Philadelphia. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston.House. While serving as a means of risk-avoidance. the infamous New York fire drew people's attention to the need to provide for sudden and large losses. The
Projects. that when newspapers published names of prominent people who were seriously ill. Gambling was so rampant. Two years later. Dissertation – projectsparadise. The Presbyterian Synod of Philadelphia in 1759. in fact. Massachusetts became the first state to require companies by law to maintain such reserves. SC. And the first life insurance policy for the general public in the United States was issued.com
. bets were placed at Lloyd’s on their anticipated dates of death. In 1835. that life insurance really took off in a big way.S. The key to its success was reducing the opposition from religious groups. 1761. sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. But it wasn't until 80 years later (after 1840).
Even today. while fraternal orders provided low-cost. from a farming country to an
Projects. which first made its appearance in the 1880s. As America moved from a colonial outpost to an independent force.great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. but sickness and accident benefits and old-age pensions. In 1897. public liability insurance. Contributing to that was America's size. land diversity and the overwhelming desire to be independent. such fraternal orders continue to provide insurance coverage to members. the British government passed the Workmen's Compensation Act. membersonly insurance. providing not just life insurance. was devised specifically for such situations. the US market developed somewhat differently from that of the United Kingdom. many societies were founded to insure the life and health of their members. Thesis. With the creation of the automobile. which made it mandatory for a company to insure its employees against industrial accidents. wherein the risks are spread among several companies. gained importance and acceptance? More advancement was made to insurance during the process of industrialization. Dissertation – projectsparadise. as do most labor organizations. During the 19th century. Final Thoughts Even though the American insurance industry was greatly influenced by Britain. The practice of reinsurance. Employees contribute a certain percentage of the premium for these policies. Many employers sponsor group insurance policies for their employees.com
2) Assignment: If your intention is that your policy monies should go only to a particular person. Dissertation – projectsparadise. 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.com
. 3) Death Benefit: The primary feature of a life insurance policy is the death benefit it provides. you need to assign the policy in favor of that person.industrial nation. The nominee has only the right to receive the policy monies in case of your death within the term of the policy. the insurance business developed from a small number of companies to a large industry.
1. Thesis. provided the premiums have been paid and the policy has not been surrendered. Permanent policies provide a death benefit that is guaranteed for the life of the insured. Insurance became more sophisticated.9 KEY FEATURES OF LIFE INSURANCE
1) Nomination: When one makes a nomination. offering new types of coverage and diversified services for an increasingly complex country. 4) Cash Value: -
5) Dividends: Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company's divisible surplus. individuals often purchase term life insurance. 6) Paid-Up Additions: Dividends paid to a policy owner of a participating policy can be used in numerous ways. one of which is toward the purchase of additional coverage.com
. 7) Policy Loans: Some life insurance policies allow a policy owner to apply for a loan against the value of their policy. sometimes a provision is available that will allow her to convert her policy to a permanent one without providing additional proof of insurability. If one owns a term policy. 8) Conversion from Term to Permanent: When in need of temporary protection.The cash value of a permanent life insurance policy is accumulated throughout the life of the policy. called paid-up additions. It equals the amount a policy owner would receive. This feature allows the policy owner an easily accessible loan in times of need or opportunity. after any applicable surrender charges. 9) Disability Waiver of Premium
Projects. Thesis. Either a fixed or variable rate of interest is charged. if the policy were surrendered before the insured's death. Dissertation – projectsparadise.
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.
. Dissertation – projectsparadise.Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an additional cost. Life Insurance policies thus decrease the total taxable income of an individual. 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
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.3) Loans: An individual can easily access loans from different financial institutions by pledging his insurance policies. 4) Retirement Planning: What had provided protection against the financial consequences of premature death may now be used to help them enjoy their retirement years. 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.
1.oriented sectors the Industry has contributed immensely to the nation's development.
. Dissertation – projectsparadise. The ventures initiated by the industry in the areas of Mutual Fund. Through investments in the Government sector and socially. Thesis.
To protect the country's foreign exchange reserves.com
. Thesis.Housing Finance has done exceedingly well in recent years. 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.
CHAPTER-2 INTRODUCTION TO THE COMPANY
Reliance Capital is one of India’s leading private sector financial services companies. Thesis. 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.Anil Dhirubhai Ambani Group. Dissertation – projectsparadise. in terms
Projects.2. of the Reliance .com
2. It was in August 2005 that the ball was set rolling when Reliance Capital Limited. 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. Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate.2 HISTORY
Reliance Capital Limited announced the launch of its life insurance business on February 1. Dissertation – projectsparadise. private equity and other activities in financial services. Thesis. 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. life and general insurance.of net worth.com
. Reliance Capital has interests in asset management and mutual funds. proprietary investments. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority. 2006. stock broking. the financial arm of Reliance – Anil Dhirubhai Ambani Group
All the existing policy contracts also stand transferred to the Reliance Life Insurance entity with all the original contractual terms and commitments intact.(ADAG) – announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited.3 JOURNEY SO FAR…
2005 August: Co Ltd. 2006 January 17: ‘Optimising Mr. The company will issue all policy contracts under the Reliance Life Insurance Company limited name. 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. and the formal transfer of shares took place in October 2005.
2. Dissertation – projectsparadise.com
14 ‘E’ Road. Mr. 17. Nandgopal. inaugurated by their CEO Mr. March 7: The new office at Chennai. 4th Floor. February 1: Rliance Life Insurance officially launched.
2. Functional Heads. Dissertation – projectsparadise. March 1: Churchgate office inaugurated by Mr. First Floor. Mr. 18: Strategy meet at the Reliance Management
Institute. Mumbai. with fail-over capability to their Chennai Data Centre
Projects. COO. Nelson Manickam Road.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. KV Srinivasan and Mr. February 16. Sureshbabu also graced the occasion. Mumbai. at the Trapezium. Nandgopal. February 26: A Puja held at the Churchgate office situated in Express Building.‘Emerging Bancassurance’ organized by the Asia Insurance Post at the Taj President.com
. Amitabh Chaturvedi and Mr. Thesis. #
39. March 6: Shifting to the new premises at Churchgate commences. Regional Managers and Regional Sales Managers. Amongst those who participate are the CEO. Amitabh
Some of the functions included in their portal are Policy Tracking Systems.within the same business day in occurance if an incident or Disaster happens. Quality Checking System. and Agent Management System etc. Under Writing Medical System. Dissertation – projectsparadise.com
. 5) R World: 30
Projects. Corporate News. A customer Relationship Management Tool (CRM) and Lead Management System (LMS) are in progress.
3) Customer Care Centre: They will host a centralized Customer Care Centre at Dhirubhai Ambani Knowledge City at Navi Mumbai. 2) Inter Office Connectivity: All their Branch / Area and Regional offices will be interconnected to their Data Centre with a 24x7 access to Core Applications like Lotus Mail. 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. Thesis. Life-Asia and Internet Applications. which cater services to internal and external queries and complications.
Reliance Mobile R-World will provide online information about their Company. 7) Life and Group Asia: Single Life and Group Life details will be captured and managed by Life and Group Asia. Thesis. Employee Alerts will include Company News and Welcome/Birthday/Anniversary message etc. Policy Servicing SMS like Premium Receipt and Renewal Premium reminders etc. The Agents/Advisors can use this area to service their existing customers.com 31
. and Policy Services to their existing customers. 8) Advisor Lounge: It is a dedicated area for Reliance Life Insurance
Agents/Advisors in all the branches across India. Agents/Advisors and Lead Generators. 9) Document Management System: Projects. where their Advisors can bring in the prospects and can have discussions across the table and they can create and print quotes. Products. Dissertation – projectsparadise. This Lounge will be equipped with desktops and printers with Internet connectivity. 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. 6) SMS Alerts: SMS Alerts will be provided to their Sales Managers about the latest happenings like Contests and Campaigns. Customer Alerts will include Welcome/Birthday/Anniversary message.
Thesis. which yields a faster Turn around Time to both internal and external users.DMS will enable both policy issuance and contract servicing through an automated workflow. 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. 11) SAP – ERP Modules: SAP (Finance and HR Modules). will automate the Expense. customer care and employee focus. This application will enable them to have a paperless office and thus mitigate the risk of losing vital records/papers. Dissertation – projectsparadise.
. The aim of the company is to Think Bigger and Think Better.business results.5 MISSION
The mission of Reliance Life Insurance Company Limited is to be the best in every sphere.
2. Travel and Leave Management Systems.6 CORE VALUES
Reliance Life Insurance Company Limited has some core values which are listed as follows:
who may be both prospective and existing clientele and from channel partners in Chennai and Mumbai.1) Result Oriented 2) Performance Driven 3) Customer Focused 4) Learning and Development Oriented 5) Employee Centric 6) Informal and Fun
2. responsive services to the caller and promptly address queries.7 FUTURE PLANS
Forty-four new branches to be opened across the country in the coming months.8 HEAD – OFFICE
Projects. and a pan India presence with 162 branches in the coming year. Thesis.
2. Dissertation – projectsparadise.com
. collate feedback and suggestions from the caller. It will be launching additional products aimed at providing unparalleled service to its valued clientele. A state-of-the-art customer care centre will provide continuous.
39. Dissertation – projectsparadise.9 BRANCHES
They have so many branches and substations in the India. They have around 160 branches in the India.Reliance Life Insurance Company Limited.com
. The Trapezium. Thesis. First Floor.
Projects. Chennai – 600 029. And they have planned to open more branches across the country in the coming months. Nelson Manickam Road.
Projects. Dissertation – projectsparadise. Thesis.com
1 TRADITIONAL PLAN:Life insurance products are designed to suit the requirements of customers. Fundamentally the product provide for: Risk cover Investment Health cover
Projects. Thesis. Dissertation – projectsparadise.com
. to a certain degree. Dissertation – projectsparadise. Thesis. Based on the coverage of the product. the premiums are calculated and the customer pays accordingly. Reliance Life Insurance Company Limited has offered 9 traditional plans to the customers. risk cover is imperative for it to fall under the category of insurance. and do not wish to save for themselves.In every product. it is essential for an agent to understand the requirements of the customer well. Since
Projects. 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. 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. In order to suggest the right product.
there is no saving element or bonus provision. Hence. Thesis.A. the premium is very low. 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. this is a high-risk plan with a low premium.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.
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.
or is perhaps planning to go abroad. This money is payable in equal installments over the last 4 years of the policy term. 25. a Doctor or specialize in some other field.com
. Dissertation – projectsparadise.000. 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. 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.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. Minimum entry age is 20 year and maximum 60 year a) Minimum sum assured is Rs. Features: I. Thesis.
Reliance Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides. It is an inexpensive and easy way to protect you. your child’s university education or even a new office for your business .your daughter’s wedding. Reliance Endowment Plan also gives you the additional benefit of participating in the company’s profits.by eliminating the burden that a shortage of money creates. 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. Thesis.
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.com
. In a nutshell this plan will keep you financially prepared for all the special occasions in your life . which you will receive at the end of the policy period.
d) Minimum sum assured is Rs.000 or as determined by the minimum premium e) Maximum sum assured is Rs. Features: a) Entry age minimum 12 year and maximum 65 year b) Minimum sum assured is Rs. 25.00. are characteristics of the policy. Thesis.com 41
. Dissertation – projectsparadise. This plan also participates in the profits.000 c) Minimum premium paying term is 10 year and maximum 40 year
Projects. 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. 5. The unique feature of this policy is that life protection continues for five years after you have stopped the payment of premium.000 (entry age below 18 years and no limit for entry age 18 and above) f) Premium mode annual. 25. 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. half yearly.
Alternatively.d) Unique feature of this policy is that five year life protection continues after you have stopped the payment of premium e) Tax benefit is available f) Under this policy bonus is compounded yearly g) Loan facility is available h) Maturity amount = Full sum assured before maturity date + Vested bonus at the time of maturity date
6) Reliance Cash Flow Plan: This insurance policy is designed for those who have a recurring need for reinvestment in business or look for short-term investment channels. substantial life cover. Dissertation – projectsparadise. Thesis. a periodic return of lump sums which become available for reinvestment at higher returns. Features:a) Plan with profits b) Minimum entry age is 15 year and maximum is 63 year
Projects. while providing simultaneously. The advantage of the policy is that they need not part with a sizable amount of money at any one time. and renovation of your home or perhaps. your daughter's engagement. but create. a holiday abroad. The first installment is paid at the end of the 4th year and thereafter at the end of every 3rd year.com
. it can be used to meet any immediate financial crisis in the family like your son's college admission. through regular premium payments. The money is payable in installments.
Features: a) Loan protection against home. home improvement.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. Dissertation – projectsparadise.com 43
. two wheelers and four wheelers b) In case of death remaining loan amount paid immediately c) In case of survival no benefit is available d) Premium payment option for single and regular is available e) Premium paying term is 2/3 of loan period and remaining period paid by the company
8) Reliance Special Credit Guardian Plan: Projects. Thesis.
Thesis. 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
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. Dissertation – projectsparadise. disability or critical illnesses.2 UNIT LINKED PLAN
A unit-linked policy is a life assurance policy in which the benefits depend on the performance of a portfolio of shares. home improvement.
Legal heirs are entitled to the amount of insurance cover and entitled units in case of death of the insured.Each premium paid by the insured person is split: a part is used to provide life assurance cover. As they are linked to the value of shares.) is used to buy units in a unit trust. Reliance Life Insurance Company Limited has also offered the two Unit Linked Plans. The above two ULIP plans are discussed as follows: 1) Reliance Market Return Plan: Reliance Market Return Fund is the unit-linked product that helps you invest in the financial markets in a combination of investment instruments of your
. In this way. Dissertation – projectsparadise. a small investor can benefit from investment in a managed fund without making a large financial commitment. while the balance (after the deduction of costs. expenses. 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. etc. 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). unit linked policies can go up or down in value. A small part of the contribution is used for providing life cover and the balance is invested in unit.
. 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. 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. 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. At the same time your investment premiums provide you with insurance cover. Thesis. half yearly and monthly Rs.choice. 2500 (standing order/credit card) d) Top up premium minimum Rs. Features: a) Minimum entry age is 30 days and maximum entry age is 65 year b) Maximum policy term 40 year and minimum policy term 5 year c) Mode of premium as annual. iv. 2500 e) Option of investment fund i. quarterly. Dissertation – projectsparadise. 1000 (for salary deduction only) and Rs. iii. ii.
.. Dissertation – projectsparadise. vesting options such as commuting and annuity options.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. The Reliance Life Insurance ‘no-worry stay happy’retirementplan. 10. a flexible pension product is available for all individuals who are between the ages of 18 and 65.
Features: a) Entry age minimum is 18 year and maximum 65 year b) Minimum premium amount Rs. Thesis. Reliance Golden Years Plan. Contributions provide Income tax savings as well.h) Partial withdrawals per year under regular and single premium options is 2 times i) Lock in period till today is 3 year j) Minimum unit account balance after each withdrawals is Rs. life cover.000
2) Reliance Golden Years Plan: Reliance Golden Years Plan…. 10. Reliance Golden Years Plan is a flexible package that provides freedom of choice in choosing the type of investment.
Capital secure fund – 80% in equity and 20% in government security Balanced fund – 80% in government and 20% in equity
f) No loan facility is available g) Tax benefit is available h) Annuity options i. Dissertation – projectsparadise. ii. iii. Thesis.com
. ii. Annuity payable for life Annuity payable for 5/10/15 years certain and thereafter with life Annuity payable for life with return of capital on death of the annuitant
HUMAN RESOURCE MANAGEMENT
Recruitment is the process of finding and attracting capable applicants for employment.
.4. The process begins when new recruits are sought and ends when their applications are submitted. Thesis. Dissertation – projectsparadise. The result is a pool of applicants from which new employees are selected.
Dissertation – projectsparadise. who recruits the advisors/agents for selling the products of the company.S.
Projects. the person will become an insurance advisor in the company. After clearing the examination the code will be provided to them and the license will also be given to them. which is conducted by the Insurance Institute of India.
4. 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. In simple words.In this company the Sales Manager.com
. The Branch Manager. examination.C. does the recruitment.2 SELECTION
Selection is the process of picking individuals (out of the pool of job applications) with requisite qualifications and competence to fill job in the organization. After all these requirements. 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. Thesis. the validity the license would be 3 years. Mumbai. which includes-. or any other approved examination body.
2) Project 40 Interview: After clearing the personal interview.
Projects. the medical check up should e made to the applicant. the applicant should have to make a list of 40 and then start the business with them. the negotiation will be provided to the applicant. In this step.
6) Selection: After clearing all the above steps the applicant should be appointed/selected as a Sales Manager in the company.
4) Negotiation: After clearing the interview with Regional Head. the applicant should be interviewed by the Regional Head. Dissertation – projectsparadise. the project 40 interview will be taken by the Branch Manager. who will check his/her performance. Thesis.
3) Interview with Regional Head: After clearing the project 40 interview.
5) Medical Examination: After that.com
3. The need for training and development is determined by the employee’s performance deficiency.3 TRAINING AND DEVELOPMENT:Training and Development is any attempt to improve current or future employee performance by increasing an employee’s ability to perform through learning usually by changing the employee’s attitude or increasing his/her skills and knowledge. guiding.Requirements of Sales Manager:The Sales following things1. Dissertation – projectsparadise.B. Manager should possess the
. 5. Thesis. training. computed as follows:
Projects. motivating and in turn getting business out of a team. They should have at least sales experience of 3 years. Their job profile includes recruitment. They should have the capability to handle the team. 6. The age of them should be between 25 to 35 years. 2. They should have good communication skill. They should be an M.
which enabling free interaction between all levels. In simple words. This institute is approved by IDRA to train agents/advisors. who are newly recruited. The 100 hours training is to be conducted at Net Bios Computer Academy whereas the product training is to be conducted at NIS SPARTA. Thesis. Dissertation – projectsparadise. who are newly recruited. it is the process of exchanging the information from one person to another. The communication is provided in the following manner:
Projects. information. things.4 CAREER DEVELOPMENT
They are also providing career development plans.5 COMMUNICATION
Communication is the process through which an individual can exchange their beliefs. They are also providing the product training to their advisors and Sales Managers.
4. The NIS SPARTA Institute has more than 150 batches and is trained over 3000 agents for most of the private insurance companies. which will identify potential and create avenues for growth.
4. They are providing an open environment.com
.Training & Development = Standard Performance – Actual Performance They are providing 100 hours training to their advisors. and experience to others.
. Dissertation – projectsparadise.
. Thesis. Dissertation – projectsparadise.BRANCH
then Regional Head to Channel Head. Thesis. 2) They are planned team building and fun events. They are providing an aggressive reward and recognition plans. and then Branch Head to Regional Head.
4. which are including sales incentives.com
. it flows between Branch Manager to Sales Managers and Sales Managers to Agents/Advisors. 3) They are creating Reliance Life Insurance family. Within a branch. associates and their families. then to Chief Marketing Officer (CMO). then to Chief Executive Officer (CEO). which includes employees.7 SERVICES
They are offering following certain services to their employees.
Incentives are monetary benefits paid to workmen in recognition of their outstanding performance. Dissertation – projectsparadise.
Projects.Explanations of the diagram:The communication is flow between Branch to Branch. then different Regional Head to Regional Head. 1) They are providing knowledge sharing and certification practices.
Thesis. structured system of measuring and evaluating an employee’s job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee.8 PERFORMANCE APPRAISAL
Performance appraisal is the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development. achievement oriented and challenge loving performance. customer focused. the Branch Manager should measure the performance of the Sales Managers at every six months and the Sales Manager should measure the performance of the advisors/agents. Dissertation – projectsparadise. process related and employee development related initiatives.
Projects. They are providing a balanced scorecard approach for strategy deployment and performance measurement.4) Reliance Life Insurance in a team building mode and is looking for performance driven. If the performance is best then he/she will be prompted. Performance appraisal is a formal. organization and society all benefit.com
. which goals and measure financial. In addition to this.
4. Dissertation – projectsparadise. Thesis.com
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
Projects.9 ORGANIZATION STRUCTURE
CEO CMO Channel Head Regional Head Branch Head SalesCEO Manager Advisors/Agents Customers
Projects. Thesis. Dissertation – projectsparadise.
5. they had increased buying power. Independent agents & insurance producer groups are growing in prevalence. Dissertation – projectsparadise. Ltd is using. Although producer groups are in their infancy. which Reliance Life Insurance Co. 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. Independent shops realized that by pooling production and funding a central support office.com
. 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. their emergence may potentially be realignment in the distribution of financial services. The one type of distribution channel.
In this channel the advisors using or targeting the bank customers to make a business with them i. This channel is tie up with banks. life insurance sales have been slower than one would expect he primary bank insurance activities have been the distribution of annuities. Thesis. to sell the policy of the company. Another type of distribution channel is corporate.com
Projects.2) Bank Assurance: While a lot of bank relationships with insurance companies have been established. Banks are failing to incorporate successful sales tactics used to sell other financial services like investments. the advisors will sell the products/policy to customers of the small enterprises. a research was performed with independent advisors across several broker/dealers and custodians. credit life. 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.e. Another type of distribution channel is bank assurance. which are for employee benefits.. Through these small enterprises. and direct marketing insurance. Dissertation – projectsparadise. followed by demand for corporate trustee services. This channel is tie up with corporate or small enterprises.
consumers are expressing a willingness to deal with a variety of providers on the web. This channel works as a dealership. primarily at the expense of the banks. These firms have steadily captured assets. 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. This channel is tie up with customer database. the advisors will sell the policy to the target customers.4) Rural Benefits:Brokerage firms have gained much of the institutional and personal trust business lost by the banks. Insurance companies view full-service brokers as a potentially new distribution channel as well.
Projects. Across all financial services. but many of the traditional full-serve players seem to be letting it go. Another type of distribution channel is rural benefits.
5) Web World:Direct sales of life insurance are growing rapidly. are listed in the website.com
. Dissertation – projectsparadise. In this channel. In this channel. which are taken from the customer database. 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. Another type of distribution channel is web world.
The promotional programmes are made to motivate the advisors/agents and sales managers to do more business i.com
. Ltd has made three promotional schemes. which are as follows:
1) Shubh – Arambh:This promotional scheme is detailed as follows: SLAB (WRP) ACHIEVERS REWARD
Projects.5.. Thesis.2 PROMOTIONAL TARGET SEGMENT
Promotional programmes and target segment are related to each other. Dissertation – projectsparadise.e. The Reliance Life Insurance Co. to sell the more policies.
.E.A. Thesis.A.00.000 7. Maruti Swift Lxi GM Aveo 1.00.000 2.000 75.000 1.00.00.:The full form of R. Dissertation – projectsparadise. This programs consists of 1.000 20.000 Login: 1st April to 31st May ‘06 Issuance till 15th June ‘06
Reliance Life T-Shirt Table Top Clock Leather Bag World Space Radio L.00.00.19L DVD/VCD/MP3 Player Sony Music System
LG Refrigerators GL-233 LG Air Conditioner 1T Sony Digital Camcorder Trip to Dubai 3D/4N Hero Honda Splender
Maruti Alto Std.30.00.E. is Reliance Advisor’s Reward Experience.000 50.50.000 10.4LS
2) R.R. Microwave.00.000 1. Board of Advisors
Projects.G. New Advisor Incentive Program 2.00.00.000 STAR ACHIEVERS 50.000 1.000 75.50.00.000 15.000 3.R.000 SUPER ACHIEVERS 5.
R.A. Dissertation – projectsparadise.E. Launch Pad B.com 65
. Thesis. Program New Advisor Incentives:Criteria There will be two levels in the New Advisor Incentive program A. R.A.E.R. R.3. Parameters
3. Time Period B. Advisor Career Progression 5. Qualification period B. RARE Club – Loyalty Program The above programs are described as follows 1. Take Off 2. Program Board of Advisors:Criteria There will be two levels in the Board of Advisors program A.E. Business criteria
Projects.A.R. Annual Discovery Series 4.R. Program Discovery Series:Criteria There will be six levels in the Discovery Series program A.
R.E. The criteria for entry into each level will be based on I. Issuances from 1st Apr ’06 to 15th Apr ‘07 Qualification Criteria
Projects. The qualification period is I. Persistency III. Qualification for the Global Discovery Series E. Business (WRP) II. The qualification criteria will be the same for both the Global and the National Discovery Series D. Privilege Club:Levels A. R. Business Associate B. Thesis.A. Logins from 1st Apr ’06 to 31st Mar ‘07 II. Qualification for the National Discovery Series F. Dissertation – projectsparadise. R. The RARE Club will have 6 different levels B.A. The top 150 will bb calculated based on WRP (Weighted Recd Premium)
4. Program Advisor Career Progression:Advisor Career Progression A. Sales Manager 5.E. Product Mix C.com
who have login the regular premium of Rs.50. 00. Dissertation – projectsparadise. There is only one public sector company LIC and the rest 14 are private sector.000 will be eligible for the Elite Club Membership.
Projects.Level Topaz Pearl Sapphire Emerald Ruby Diamond
WRP (Rs) 1.00.00.000 15.000 5.00.3 COMPARATIVE STUDY
Presently there are 15 Life insurance companies in the country.com 67
. Although LIC has been dominating the Life Insurance business since past few years the private players have now started to take the momentum. 2.
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 10.000 50.00. Thesis.00.
Thesis. It is a private sector company.89%. HDFC – Standard: HDFC standard is a 74:26 joint venture between HDFC and Standard Life. The company was registered on 23/10/2000. The market share for FY 2005-06 was 2.87%. 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%.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. ICICI Prudential Life Insurance: ICICI Prudential Life is a 74:26 joint venture between ICICI and Prudential. The market share for FY 2005-06 was 7. The company was registered on 24/11/2000. Kotak Mahindra OLD Mutual: -
Projects. It is a private sector company. Dissertation – projectsparadise. Being the first to be established LIC is the forerunner in the Life Insurance sector. The market share for FY 2005-06 was 71.com
. The company was registered on 14/5/2002.79%. Pallonji & Co and MetLife. 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. It is a private sector company.
ING Vysya Life insurance: ING Vysya Life Insurance is joint venture between Exide (50%). The company was registered on 2/8/2001. It is a private sector company. The market share for FY 2005-06 was 1. It is a private sector company. Thesis. The company was registered on 10/1/2001.13%) and ING (26 %). Enam (9.Kotak Mahindra OLD Mutual is a 74:26 joint venture between Kotak Mahindra bank and Old Mutual. The market share for FY 2005-06 is 0.87%).23%. Dissertation – projectsparadise. The market share for FY 2005-06 was 1. The company was registered on 6/8/2001. Gujarat Cements (14. The market share for FY 2005-06 was 1. Aviva Life Insurance India: Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur.11%.
29%. SBI Life Insurance Company Ltd: SBI Life Insurance Company is a 74: 26 Joint venture between SBI and Cardiff S. It belongs to the private sector. The market share for FY 2005-06 was 0. Sahara India Life Insurance Company Ltd.A. Thesis.: Bajaj Allianz Life Insurance Company is a 74: 26 Joint venture between Bajaj Auto limited and Allianz AIG.40%.: -
Projects. 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. The company was registered on 12/2/2001.56%. Bajaj Allianz Life Insurance Co. Pallonji & Co and MetLife.Met Life India is a 74:26 joint venture between 74:26 JV between J & Bank. The company was registered on 6/8/2001. The market share for FY 2005-06 was 7. The company was registered on 3/8/2001. Dissertation – projectsparadise. It is a private sector company. The market share for FY 2005-06 was 1.It is a private sector company. The company was registered on 31/3/2001.com
First Wholly Indian Owned Private Life Insurance Company.44 7. Thesis.35 2.com
2) Market Share: -
Sr. Dissertation – projectsparadise. South Africa.56 7. The Company commenced operations from 30th October 2004.06 %. The market share for FY 2005-06 was 0. No 1 2 3 4
Insurer LIC Bajaj Allianz ICICI Prudential HDFC Standard
Market Share (%) 71. 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. The company expects to start operations soon.87
31 1.5 6 7 8 9 10 11 12 13 14 15
SBI Life Birla SunLife Tata AIG Max New York Aviva Kotak Mahindra OLD Mutual ING Vysya Reliance Life MetLife Sahara Life Shriram Life
2.06 0.11 0.com
. Thesis.4 0.54 0.23 1.79 0.89 1.29 1.03
Now let’s depict the market share of these players on diagram
Projects.14 1. Dissertation – projectsparadise.
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.
Projects. It has the market share of approximately 7. HDFC Standard comes third.com
Among private players Bajaj Allianz stands first.56% in the total market and it constitutes 40% of the market share among private players. Rest of the players has market share below 2%. 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. ICICI Prudential is also one of the fastest growing life insurance companies in India. Dissertation – projectsparadise.
Thesis.3) Capital Fund: -
Capital Fund of Private Companies ( Rs in Crore ) ICICI Prudential Max New York HDFC Standard Bajaj Allianz Tata AIG Birla Sun Life AVIVA OM Kotak Reliance Life SBI Life Met Life ING Vysya 375 250 218 200 183 180 155 153 126 125 110 110
. Dissertation – projectsparadise.
Projects. Dissertation – projectsparadise. Thesis.
Dissertation – projectsparadise.1 OBJECTIVES OF STUDY
1) To get some good market exposure by dealing with the prospects face to face. Thesis.6.com
Projects. 2) To improve our ability to sell a financial product like life insurance.
I have also used closed-end questions. I have asked personal questions at last so that respondent does not become defensive. direct. which provide answers that are easier to interpret and tabulate.
6. unbiased wording questions. I have used simple.
Projects.3) To know the perception of the consumer about life insurance. 5) To get some information about the market share of Reliance Life Insurance as compared to the giants like LIC and to know the standing of the company in the market. Thesis. I have taken care in the wording and ordering of questions.com
. The form of each question is also important. 4) To get a deep knowledge of the financial product like insurance.2 QUESTIONNAIRE
It is most common instrument whether administered in person by phone or online questionnaires are very flexible. I have used open-end questions so that customers can write answer in their own words. which are arranged in a logical order. Dissertation – projectsparadise. Closed end question include all the possible answers and subjects matters choices among them.
Questionnaire of the customer I have made questionnaire consisting seventeen questions to get customer’s view about life insurance. different magazines.3 SAMPLING METHOD AND SAMPLE SIZE
Introduction:Any organization whether big or small. private or public need different types of information are to know its popularity. I have asked personal questions at last so that they do not become defensive. Dissertation – projectsparadise. up to what amount and since when. I have gathered secondary data from website of different operators. whether they want to invest. where thy want to invest. newspapers and libraries.
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. having been collected for another purpose.
Primary data: Projects. I have tried to know their performance i.com 78
Sample size: I have taken sample size of 50 respondents. I have taken a sample of 50 people.4 LIMITATIONS
I am a human hang. The following are the limitation of this research study.
Projects. Because the population is too large so it is difficult to survey. current and unbiased. I have visited them personally to get data. so there is some limitation of the human hangs which is reflected in this research.I have taken great care while collecting primary data to answer that it is relevant. Dissertation – projectsparadise. accurate.
But in spite of their limitation I worked with the enthusiasm.5 ANALYSIS OF QUESTIONNAIRE
Here I have formed a questionnaire to study why people go for life insurance. I tried hard to come at conclusion. as the sample size is too small for total population of Ahmedabad city. 2) The opinion expressed by the respondents may be biased. 3) The attitude of the research might be biased. There are some limitations of this study. 5) Another limitation is that there is lack of time. Dissertation – projectsparadise. And I tried to give the best results to the research of this report.com
. Thesis. but there is lack of expertise. 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?
6. If I give more time then studies will be more effective.1) The sample size of 50 might not represent the perception of whole population. 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 are close ended and one question is an open ended one. and general public. and the target group was a mix of people from the society. Professionals. Advocates.com
.Questions:There are 7 questions in the questionnaire. Analysis:I have used pie charts. Professors.
Q. Out of these 7 questions. Thesis. and some other statistical measures to analyze the questions. Dissertation – projectsparadise. Target Population:I had conducted this survey among 50 people. Engineers. I asked the questions to Doctors.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover (d) Return/Yield
Some believe that life insurance is an investment so they tend to invest in life insurance.MOTIVE TAX SAVING RISK COVERAGE RETURN/YIELD TOTAL
NO. 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. Thesis.com
. But some people consider different advantages of a life insurance policy. Dissertation – projectsparadise. Now let’s see what all people say
TAX SAVING RISK COVERAGE RETURN/YIELD
Projects. Some people consider Tax benefit as the main advantage of life insurance. While some people believe that it is a compulsory saving.
Return comes last.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 ).com
. As the private players have launched ULIPs. we can get a different result. life insurance is for protection first then for Savings and Tax benefits all those things.
Q. Dissertation – projectsparadise.2 Rank the above motives according to your preference
MOTIVE OF INVESTMENT TAX BENEFIT SAVINGS RISK COVER RETURN/YIELD Preference 1 2 3 4 21 19 8 2 3 11 25 11 24 16 7 3 1 4 10 35
Projects. But this is the general conclusion of 50 people. more and more people are turning towards these products so the Investment motive has been gaining command. Also the number of those people who wish to invest for return is also increasing. 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. Saving motive constitutes very small part of the total sample. Thesis. The next preferred option is Tax Saving. If we take a larger sample.
40 35 30 25 20 15 10 5 0
ce 1 2 3 en 4
TAX BENEFIT SAVINGS RISK COVER RETURN/YIELD
We can see from the table and the graph that the number one motive of people about investing in life insurance is risk coverage. Thesis.
Q. This shows that still people consider other financial tools more viable for return and life insurance is for Tax benefit and risk cover. Dissertation – projectsparadise.3 How do you decide about investing in life insurance? (a) On my own (b) family decision (c) Employer decides (d) as per the guidance of agent This is a very crucial question as most of the people are not much familiar about different life insurance plans offered by different life insurance
Projects. which is the main theme of life insurance followed by Tax benefit. The third position is of saving and fourth is Return.com
People tend to invest in life insurance plans to maintain relations though they are not in need of life insurance. Here one hazardous factor is the moral hazard. Dissertation – projectsparadise.
SOURCE ON MY OWN FAMILY DECISION EMPLOYER DECIDES AGENT GUIDANCE TOTAL
NO. Also sometimes it depends upon the convincing power of the agent.
Projects. 28% persons decides as per the guidance of the agent. 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.companies so people take help of the life insurance agent and as he guides understanding the needs of the individual.com
. Thesis. people would invest.
9 9 7 19 6 50
Projects.There is no contribution of employers in the decision of one’s investment in life insurance.com
. 14% people invest in life insurance as per the family decision. Thesis. We have already explained all these policies ahead. Now let’s find out what people have to say: Type of policy Term Assurance Whole Life Endowment Combined ULIPs TOTAL N0. which are relatively new entrant in the market.4. The products range from pure Term Assurance Plans to Unit Linked Insurance Plans. Dissertation – projectsparadise. 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.
It is the main theme of this questionnaire. The person would get some amount at the end of the stipulated period.
.5 Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy? (a) Reliance Life Insurance (b) LIC This is the most important question as it reflects the scope of the study. for instance 20 years. It gives people double advantage.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.
Q. and after that period the risk cover continues and the rest of the amount would be paid when the person dies. Dissertation – projectsparadise.
Thesis. some people have also turned to private life insurers. Now let’s see what people say: Particulars Reliance Life Insurance LIC TOTAL No. So it has fewer customers as compared to LIC.Prior to 2000 LIC was the only player in the life insurance market and it had the total market.
Projects. But after the entry of private players in 2000. So people had to go to LIC for buying life insurance policy. Reliance Life Insurance Company Limited is newly launched company. 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. Dissertation – projectsparadise.com
. But the ULIP plans are sold more of Reliance life insurance as compared to LIC in today’s environment.
5 30 15 50
Projects.Personal Details: 1) Age (a) 18 to 30 (b) 31 to 50 (c) 51 to 65
Age 18 to 30 31 to 50 51 to 65 TOTAL
. Dissertation – projectsparadise.
Out of which 10% people are aged between 18 to 30.
2) Occupation (a) Service (b) Business (c) Profession (d) Housewife (e) Retired
Projects. and remaining 30% people are aged between 51 to 65.com
. Thesis. Dissertation – projectsparadise. 60% people are aged between 31 to 50.18 to 30 31 to 50 51 to 65
As evident from the chart that I have taken a sample of 50.
Projects.000 (c) More than 5. Thesis. Dissertation – projectsparadise.com
3) Income (a) 50.000 to 1.00. 30% are of business men.Service Business Profession Housewife Retired TOTAL
5 15 10 5 15 50
Service Business Profession Housewife Retired
As the evident from the chart that out of 50 respondents 10% are of service men. 20% are of professions.00.00.000 (b) 1.000 to 5.00. 10% are of housewives and remaining 30% are of retired.
00.000 to 1.000 and 30% are earning more than 5.000
10 25 15 50
As the evident from the chart out of 50 respondents 20% are earning annually between 50. 50% are earning between 1.000 to 5.000 to 5.000 More than 5.00.00.000 to 1.00.00.000 to 1.com
.000 1.00.00.000.000. Thesis.
4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4
Projects.Income (Per Annum)
No.000 to 5. Dissertation – projectsparadise.00.00.
50.00.00.000 1.00.000 More than 5.
Projects. 30% have 3 family members.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. 40% have 4 family members and remaining 20% have more than 4 family members. Now let’s make SWOT analysis for reliance Life Insurance Company Limited.
6. Thesis.6 SWOT ANALYSIS
SWOT analysis is the analysis of the internal and external factors. Dissertation – projectsparadise.
4) Strong liquidity from FII was the major reason for the up move. 3) Private placement of Rs. financial stability.
Projects.000 crs worth of securities with RBI by the government. Dissertation – projectsparadise.
▼WEAKNESSES: 1) Newly established company. Led to an improvement in market securities.com
. 10.☻STRENGTHS: 1) Reliance Life Insurance Company Limited is the part of the Reliance Capital. Thesis. 5) Range of products 6) Reliance has a long and strong history of solvency. 2) Lack of staff. 2) The brand name is enough to sell the products easily. so people seems it risky.
3) Lack of advertisement.
Projects. Dissertation – projectsparadise.
● THREATS: 1) The main threat is from the other players who have grabbed approximately 15% of the market share.com 95
. 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.
☼ OPPORTUNITY: 1) There is a vast untapped market in India. regular and disciplined savings to systematically build up a target fund. 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. So it has large potential. The life insurance penetration in India is approximately 2.5%. Thesis. the people who used to invest in life insurance for the sole motive of tax benefit may turn to other instruments.
which Reliance Life Insurance Company Limited has offered. which are as follows:
There are four fund options.com
. Dissertation – projectsparadise. Thesis.
’06) Net Returns during the last 3 months (Jan. and Reliance Market Return Plan.75% GOI 2006 11.4% 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.09% 3.’06) Net Returns since Inception in Feb’03 (Annualized)
Net Returns during last 1 month (Mar. In line with the objective of protecting the capital against any erosion.10% 4.-Mar.89%
Bank Fixed Deposits Asset Name Total Bank Deposit Gilts 6. Thesis. The net return credited to policyholders and the asset composition ratios are given in the boxes below.69 40.’06) Net Returns during the last 12 months (Apr.60
6.75% GOI 2006
Projects.1) Capital Secure Fund:This fund is for Reliance Golden Years Plan.75 13.96
. Dissertation – projectsparadise.68% GOI 2006 11.’05-Mar.com
% of total assets 38. 61.36% 1.
40 100. Dissertation – projectsparadise.Total Gilts Total
61. 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.00
Gilts Bank Deposits
2) Balanced Fund:This fund is for Reliance Golden Years Plan. The asset composition. and Reliance Market Return Plan. To take advantage of the bullish trend in the equity market. All the bonds in the portfolio are top rated. Thesis. Net Returns during last 1 month (Mar.com
2. Within the fixed income portfolio.’06)
Projects. Bank deposits were maintained only for the purpose of liquidity management. allocation to Gilts was higher than corporate bonds. the details of the portfolio and the net returns are disclosed below.47%
Dissertation – projectsparadise.-Mar.com
Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total
% of Total Asset 20 22 53 5 100.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 during the last 12 months (Apr.83% 13. Thesis.’06) Net Returns since Inception in Feb’03 (Annualized)
’06) Net Returns during the last 3 months (Jan.com
.’06) Net Returns since Inception in Feb’03 (Annualized)
Net Returns during last 1 month (Mar. Dissertation – projectsparadise.-Mar. All the bonds in the portfolio are top rated.60% 7.This fund is for Reliance Golden Years Plan.’06) Net Returns during the last 12 months (Apr.90% 21.99% 24.04%
Asset Name Equity Corporate Bonds & Debentures Gilts Bank Deposits Total
% of Total Asset 9 40 45 6 100.00
Projects. the details of the portfolio and the net returns are disclosed below. the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund. Thesis. The asset composition. and Reliance Market Return Plan. To take advantage of the bullish trend in the equity market.’05-Mar. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low.
-Mar.’06) Net Returns during the last 12 months (Apr.
Net Returns during last 1 month (Mar. Thesis.’06) Net Returns during the last 3 months (Jan.’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.’05-Mar.com
.02% 64.46% 57.83%
Projects.18% 20. Net returns earned since inception and the full portfolio are disclosed below. the entire corpus of the fund was invested in equities. In line with the stated asset allocation pattern and their view of the market. Dissertation – projectsparadise.
Equity Mutual Fund/Bank Deposits
Projects.Asset Name Equity Mutual Fund/Bank Deposits Total
% of Total Asset 98. Thesis.07 100.com
.93 1. Dissertation – projectsparadise.
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
Thesis.Life Time Magazine of Reliance Life Insurance Net Bios Computer Academy’s Life Insurance Book Broachers of Reliance Life Insurance
. Dissertation – projectsparadise.
On Life Insurance
NAME: ___________________________________________ Q.B.C.M.com 107
.1 What is your main motive behind investing in life insurance? (a) Tax Benefit (b) Savings (c) Risk Cover
Projects. Dissertation – projectsparadise. Thesis.K.Questionnaire
Survey by student of R.
Q.3 How do you decide about investing in life insurance? (a) On my own (b) family decision (c) Employer decides (d) as per the guidance of agent Q.4.5 Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy? (a) Reliance Life Insurance (b) LIC
Projects.2 Rank the above motives according to your preference
MOTIVE OF INVESTMENT TAX BENEFIT SAVINGS RISK COVER RETURN/YIELD Preference 1 2 3 4
Q. Dissertation – projectsparadise. 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
Thesis. Dissertation – projectsparadise.PERSONAL DETAILS
1) Age (a) 18 to 30 (b) 31 to 50 (c) 51 to 65
2) Occupation (a) Service (b) Business
000 (b) 1.000 4) Family members (a) 2 (b) 3 (c) 4 (d) More than 4
Projects. Thesis.(c) Profession (d) Housewife (e) Retired 3) Income (a) 50. Dissertation – projectsparadise.com
.00.000 (c) More than 5.000 to 5.00.00.000 to 1.00.