PROJECT ON

RELIANCE LIFE INSURANCE COMPANY

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

DEGREE OF MASTERS OF COMMERCE (M.COM) FROM THE
UNIVERSITY OF MUMBAI

SUMBITTED BY
SHREERAJ HARIHARAN
M.COM PART-I (SEM-II)
ROLL NO 36
2013-2014

UNDER THE GUIDANCE OF

PROF. JAI KOTECHA

LORD UNIVERSAL COLLEGE,

TOPIWALA MARG, OFF STATION ROAD, GOREGAON (WEST), MUMBAI,
400062

DECLARATION
I MR SHREERAJ HARIHARAN student of LORD UNIVERSAL COLLEGE, M.com
Part-I (SEM II) hereby declare that I have completed project on RELIANCE LIFE
INSURANCE COMPANY, in the academic year 2013-2014.This information is true
&original to best of my knowledge

Date:

signature of student

Acknowledgement
With deep satisfaction and immense pleasure I am presenting this project report on
RELIANCE LIFE INSURANCE COMPANY in partial requirements for the
M.COM course.
I would like to extend my sincere gratitude and appreciation to my project guide Prof.
JAI KOTECHA who assisted me into this project. It has indeed been a great experience
working under her guidance during the course of the project. I would like to thank her for
his valuable advice and support throughout this project.
And last but not the least I would like to thank all the Faculty Members, staff of the
institute for their help in making my project an unforgettable and great learning
experience.

Date:

signature of student

CONTENTS

INDUSTRY PROFILE ---------------------------------------------------------------05

MEANING OF INSURANCE-------------------------------------------------------09
IMPORTANCE OF INSURANCE-------------------------------------------------10
CUSTOMER SATISFACTION-----------------------------------------------------11
ABOUT RELIANCE LIFE INSURANCE COMPANY-----------------------16
COMPETITORS-----------------------------------------------------------------------26
ORGANIZATIONAL STUDY OF RELIANCE LIFE INSURANCE WITH
REFERENCE TO CUSTOMER
SATISFACTION-----------------------------------------------------------------------31
ANNUAL REPORT-------------------------------------------------------------------43
CONCLUSION-------------------------------------------------------------------------55
BIBLIOGRAPHY---------------------------------------------------------------------57

INDUSTRY PROFILE
In India, insurance has a deep-rooted history. It finds mention in the
writings of Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and
Kautilya (Arthasastra ). The writings talk in terms of pooling of
resources that could be re-distributed in times of calamities such as
fire, floods, epidemics and famine. This was probably a pre-cursor to
modern day insurance. Ancient Indian history has preserved the
earliest traces of insurance in the form of marine trade loans and
carriers contracts. Insurance in India has evolved over time heavily
drawing from other countries, England in particular.
1818 saw the advent of life insurance business in India with the
establishment of the Oriental Life Insurance Company in Calcutta. This
Company however failed in 1834. In 1829, the Madras Equitable had
begun transacting life insurance business in the Madras Presidency.
1870 saw the enactment of the British Insurance Act and in the last
three decades of the nineteenth century, the Bombay Mutual (1871),
Oriental (1874) and Empire of India (1897) were started in the Bombay
Residency. This era, however, was dominated by foreign insurance
offices which did good business in India, namely Albert Life Assurance,
Royal Insurance, Liverpool and London Globe Insurance and the
Indian offices were up for hard competition from the foreign
companies.
In 1914, the Government of India started publishing returns of
Insurance Companies in India. The Indian Life Assurance Companies
Act, 1912 was the first statutory measure to regulate life business. In
1928, the Indian Insurance Companies Act was enacted to enable the
Government to collect statistical information about both life and non-life
business transacted in India by Indian and foreign insurers including
provident insurance societies. In 1938, with a view to protecting the
interest of the Insurance public, the earlier legislation was consolidated
and amended by the Insurance Act, 1938 with comprehensive
provisions for effective control over the activities of insurers.
The Insurance Amendment Act of 1950 abolished Principal Agencies.
However, there were a large number of insurance companies and the
level of competition was high. There were also allegations of unfair
trade practices. The Government of India, therefore, decided to
nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalizing the Life

Insurance sector and Life Insurance Corporation came into existence
in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers
as also 75 provident societies245 Indian and foreign insurers in all.
The LIC had monopoly till the late 90s when the Insurance sector was
reopened to the private sector.
The history of general insurance dates back to the Industrial
Revolution in the west and the consequent growth of sea-faring trade
and commerce in the 17th century. It came to India as a legacy of
British occupation. General Insurance in India has its roots in the
establishment of Triton Insurance Company Ltd., in the year 1850 in
Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd,
was set up. This was the first company to transact all classes of
general insurance business.
1957 saw the formation of the General Insurance Council, a wing of
the Insurance Association of India. The General Insurance Council
framed a code of conduct for ensuring fair conduct and sound business
practices.
In 1968, the Insurance Act was amended to regulate investments and
set minimum solvency margins. The Tariff Advisory Committee was
also set up then.
In 1972 with the passing of the General Insurance Business
(Nationalization) Act, general insurance business was nationalized with
effect from 1st January, 1973. 107 insurers were amalgamated and
grouped into four companies, namely National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance
Company Ltd and the United India Insurance Company Ltd. The
General Insurance Corporation of India was incorporated as a
company in 1971 and it commence business on January 1sst 1973.
This millennium has seen insurance come a full circle in a journey
extending to nearly 200 years. The process of re-opening of the sector
had begun in the early 1990s and the last decade and more has seen
it been opened up substantially. In 1993, the Government set up a
committee under the chairmanship of RN Malhotra, former Governor of
RBI, to propose recommendations for reforms in the insurance sector.
The objective was to complement the reforms initiated in the financial
sector. The committee submitted its report in 1994 wherein, among
other things, it recommended that the private sector be permitted to

enter the insurance industry. They stated that foreign companies be

allowed to enter by floating Indian companies, preferably a joint
venture with Indian partners.
Following the recommendations of the Malhotra Committee report, in
1999, the Insurance Regulatory and Development Authority (IRDA)
was constituted as an autonomous body to regulate and develop the
insurance industry. The IRDA was incorporated as a statutory body in
April, 2000. The key objectives of the IRDA include promotion of
competition so as to enhance customer satisfaction through increased
consumer choice and lower premiums, while ensuring the financial
security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for
application for registrations. Foreign companies were allowed
ownership of up to 26%. The Authority has the power to frame
regulations under Section 114A of the Insurance Act, 1938 and has
from 2000 onwards framed various regulations ranging from
registration of companies for carrying on insurance business to
protection of policyholders interests.
In December, 2000, the subsidiaries of the General Insurance
Corporation of India were restructured as independent companies and
at the same time GIC was converted into a national re-insurer.
Parliament passed a bill de-linking the four subsidiaries from GIC in
July, 2002.
Today there are 24 general insurance companies including the ECGC
and Agriculture Insurance Corporation of India and 23 life insurance
companies operating in the country.
The insurance sector is a colossal one and is growing at a speedy rate
of 15-20%. Together with banking services, insurance services add
about 7% to the countrys GDP. A well-developed and evolved
insurance sector is a boon for economic development as it provides
long- term funds for infrastructure development at the same time
strengthening the risk taking ability of the country.

Meaning of Insurance

Insurance may be described as a social device to reduce or eliminate

risk of loss to life and property. Insurance is a collective bearing of risk.
Insurance is a financial device to spread the risks and losses of few
people among a large number of people, as people prefer small fixed
liability instead of begun certain and changing liability. 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.
The other party called insured pays in exchange a fixed sum known as
premium. Insurance is desired to safeguard oneself and ones family
against possible losses on account of risks and perils. It provides
financial compensation for the losses suffered due to the happening of
any unforeseen events.
There are three parties in a life insurance transaction: the insurer, the
insured, and the owner of the policy (policyholder), although the owner
and the insured are often the same person. Another important person
involved in a life insurance policy is the beneficiary. The beneficiary is
the person or persons who will receive the policy proceeds upon the
death of the insured. Life insurance may be divided into two basic
classes term and permanent.
Term life insurance provides for life insurance coverage for a
specified term of years for a specified premium. The policy does
not accumulate cash value.
Permanent life insurance is life insurance that remains in force
until the policy matures, unless the owner fails to pay the premium
when due.

IMPORTANCE OF INSURANCE

Insurance constitutes one of the major segments of the financial

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

Customer Satisfaction

Defining customer satisfaction

Because the concept of customer satisfaction is new to many
companies, it's important to be clear on exactly what's meant by the
term.
Customer satisfaction is the state of mind that customers have about a
company when their expectations have been met or exceeded over the
lifetime of the product or service. The achievement of customer
satisfaction leads to company loyalty and product repurchase. There
are some important implications of this definition:
Because customer satisfaction is a subjective, non quantitative
state, measurement won't be exact and will require sampling and
statistical analysis.
Customer satisfaction measurement must be undertaken with an
understanding of the gap between customer expectations and
attribute performance perceptions.
There should be some connection between customer satisfaction
measurement and bottom-line results.

"Satisfaction" itself can refer to a number of different facts of the

relationship with a customer. For example, it can refer to any or all of
the following:
Satisfaction with the quality of a particular product or service
Satisfaction with an ongoing business relationship
Satisfaction with the price-performance ratio of a product or
service
Satisfaction because a product/service met or exceeded the
customer's expectations

Each industry could add to this list according to the nature of the
business and the specific relationship with the customer. Customer
satisfaction measurement variables will differ depending on what type
of satisfaction is being researched. For example, manufacturers
typically desire on-time delivery and adherence to specifications, so
measures of satisfaction taken by suppliers should include these
critical variables.
Clearly defining and understanding customer satisfaction can help any
company identify opportunities for product and service innovation and
serve as the basis for performance appraisal and reward systems. It
can also serve as the basis for a customer satisfaction surveying
program that can ensure that quality improvement efforts are properly
focused on issues that are most important to the customer.
Objectives of a customer satisfaction surveying program
In addition to a clear statement defining customer satisfaction, any
successful surveying program must have a clear set of objectives that,
once met, will lead to improved performance. The most basic
objectives that should be met by any surveying program include the
following:

 Understanding the expectations and requirements of all your

customers
Determining how well your company and its competitors are
satisfying these expectations and requirements
Developing service and/or product standards based on your
findings
Examining trends over time in order to take action on a timely
basis
Establishing priorities and standards to judge how well you've met
these goals

Before an appropriate customer satisfaction surveying program can be

designed, the following basic questions must be clearly answered:
How will the information we gather be used?
How will this information allow us to take action inside the
organization?
How should we use this information to keep our customers and
find new ones?

Careful consideration must be given to what the organization hopes to

accomplish, how the results will be disseminated to various parts of the
organization and how the information will be used. There is no point
asking customers about a particular service or product if it won't or
can't be changed regardless of the feedback.
Conducting a customer satisfaction surveying program is a burden on
the organization and its customers in terms of time and resources.
There is no point in engaging in this work unless it has been
thoughtfully designed so that only relevant and important information is

gathered. This information must allow the organization to take direct

action. Nothing is more frustrating than having information that
indicates a problem exists but fails to isolate the specific cause. Having
the purchasing department of a manufacturing firm rate the sales and
service it received on its last order on a scale of 1 (terrible) to 7
(magnificent) would yield little about how to improve sales and service
to the manufacturer.
The lesson is twofold. First, general questions are often not that
helpful in customer satisfaction measurement, at least not without
many other more specific questions attached. Second, the design of an
excellent customer satisfaction surveying program is more difficult than
it might first appear. It requires more than just writing a few questions,
designing a questionnaire, calling or mailing some customers, and then
tallying the results.

Understanding differing customer attitudes

The most basic objective of a customer satisfaction surveying program
is to generate valid and consistent customer feedback (i.e., to receive
the voice of the customer, which can then be used to initiate strategies
that will retain customers and thus protect the most valuable corporate
asset--loyal customers).
As it's determined what needs to be measured and how the data
relate to loyalty and repurchase, it becomes important to examine the
mind-set of customers the instant they are required to make a prepurchase (or repurchase) decision or a recommendation decision.
Surveying these decisions leads to measures of customer loyalty. In
general, the customer's pre-purchase mind-set will fall into one of three
categories--rejection (will avoid purchasing if at all possible),
acceptance (satisfied, but will shop for a better deal), and/or
preference (delighted and may even purchase at a higher price).
This highly subjective system that customers themselves apply to their
decisions is based primarily on input from two sources:

 The customers' own experiences--each time they experience a

product or service, deciding whether that experience is great,
neutral or terrible. These are known as "moments of truth."
The experiences of other customers--each time they hear
something about a company, whether it's great, neutral or terrible.
This is known as "word-of-mouth."
There is obviously a strong connection between these two inputs. An
exceptional
experience
leads
to
strong
word-of-mouth
recommendations. Strong recommendations influence the experience
of the customer, and many successful companies have capitalized on
that link.
Obviously, the goal of every company should be to develop customers
with a preference attitude (i.e., we all want the coveted preferred
vendor status such that the customer, when given a choice, will choose
our company), but it takes continuous customer experience
management, which means customer satisfaction measurement, to get
there--and even more effort to stay there.

ABOUT RELIANCE LIFE INSURANCE COMPANY

Reliance Life Insurance Company Limited (Reliance Life
Insurance) is a part of Reliance Capital Ltd. of the Reliance Anil
Dhirubhai Ambani Group. Reliance Capital is one of Indias leading
private sector financial services companies, and ranks among the top 3
private sector financial services and banking companies, in terms of
net worth.
Nippon Life Insurance Company acquired 26% interest in equity share
capital of the Company effective October 7, 2011 subsequent to receipt
of all regulatory approval.
Nippon Life Insurance, also called Nissay, is Japan's largest private life
insurer with revenues of Rs 346,834 crore (US$ 80 Billion) and profits
of over Rs 12,199 crore (US$ 3 billion). The Company has over 14
million policies in Japan, offers a wide range of products, including
individual and group life and annuity policies through various
distribution channels and mainly uses face-to-face sales channel for its
traditional insurance products. The company primarily operated in
Japan , North America, Europe and Asia and is headquartered in
Osaka, Japan. It is ranked 81st in Global Fortune 500 firms in 2011.
Established in 2001, Reliance Life insurance Company is a private
insurance company; subsidiary of reliance capital ltd. Reliance life
insurance is based in Mumbai and only the second company among
private insurer to have 9001:2000 ISO certification.

Reliance Life Insurance offers you products that fulfill your savings and
protection needs. Our aim is to emerge as a transnational Life Insurer
of global scale and standard.
Reliance Life Insurance is a Reliance Capital Company and is part of
Reliance Group. Reliance Capital is one of Indias leading private
sector financial services companies, and ranks among the top 3 private
sector financial services and banking companies, in terms of net worth.
Reliance Capital has interests in asset management and mutual funds,
stock broking, life and general insurance, proprietary investments,
private equity and other activities in financial services.

Reliance Group also has presence in Communications, Energy,

Natural Resources, Media, Entertainment, Healthcare and
Infrastructure.
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 consumers preferred
life insurer by understanding and meeting his needs. Think Bigger,
Think Better!
Distribution Network/ Branches:
Reliance life insurance has a strong distribution system with around
1250 branches with 2, 00,000 advisors.
Financial information
The total premium earned for the half year ended September 30, 2010
was Rs 27,862 million. The profit after tax for the same period is Rs.
1634 million. A total of 4968 claims were made during the period out of
which 3635 claims were settled and 374 cases were rejected.

Mission and visions

Mission
Create unmatched value for everyone through dependable, effective,
transparent and profitable life insurance and pension plan.
Vision
Empowering everyone live their Dreams.
Our Goal
Reliance life insurance would strive hard to achieve three goals
mentioned below:
Emerge as transnational Life insurer of global scale standard.
Create best value for customers, shareholders and all stake
holders.
Achieve impeccable reputation and credentials through best
business practices.
Key features of the life insurance
1) Nomination:
When one makes a nomination, as the policyholder you continue to be
the owner of the policy and the nominee does not have any right under
the policy so long as you are alive. The nominee has only the right to
receive the policy monies in case of your death within the term of the
policy.

2) Assignment:
If your intention is that your policy monies should go only to a
particular person, you need to assign the policy in favor of that person.
3) Death Benefit:
The primary feature of a life insurance policy is the death benefit it
provides. Permanent policies provide a death benefit that is
guaranteed for the life of the insured, provided the premiums have
been paid and the policy has not been surrendered.
4) Cash Value:
The cash value of a permanent life insurance policy is accumulated
throughout the life of the policy. It equals the amount a policy owner
would receive, after any applicable surrender charges, if the policy
were surrendered before the insured's death.
5) Dividends:
Many life insurance companies issue life insurance policies that entitle
the policy owner to share in the company's divisible surplus.
6) Paid-Up Additions:
Dividends paid to a policy owner of a participating policy can be used
innumerous ways, one of which is toward the purchase of additional
coverage, called paid-up additions.
7) Policy Loans:
Some life insurance policies allow a policy owner to apply for a loan
against the value of their policy. Either a fixed or variable rate of
interest is charged. This feature allows the policy owner an easily
accessible loan in times of need or opportunity.
8) Conversion from Term to Permanent:
When in need of temporary protection, individuals often purchase term
life insurance. If one owns a term policy, sometimes a provision is
available that will allow her to convert her policy to a permanent one
without providing additional proof of insurability.
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.
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. Life Insurance policies
thus decrease the total taxable income of an individual.
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. Moreover the cash value can be used as an
additional income in the old age.
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.
Product Portfolio:
Life insurance products are designed to suit the requirements of
customers. Fundamentally the product provide for:
Risk cover
Investment
Health cover

In every product, to a certain degree, risk cover is imperative for it to

fall under the category of insurance. Based on the coverage of
the product, the premiums are calculated and the customer pays
accordingly. In order to suggest the right product, it is essential for an
agent to understand the requirements of the customer well. Reliance
Life Insurance Company Limited has offered 9traditional plans to the
customers, 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:
Reliance Term plan: This insurance policy is designed for those
who only want life cover for the protection of their family, and do not
wish to save for themselves. 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. Since there is no
saving element or bonus provision, the premium is very low. Hence,
high risks plans with a low premium.
Reliance Whole Life Plan: This insurance policy is designed for
people who do not wish to avail any of 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.
Reliance Child Plan: This insurance policy is designed for people
who wish to save money for a future time when there will be a
recurring need for substantial amounts of money. This 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, a Doctor or specialize in some other field, or is
perhaps planning to go abroad. This money is payable in equal
installments over the last 4 years of the policy term.
Reliance Endowment Plan: Reliance Life Insurances Reliance
Endowment Plan is the key to all your financial needs. It is an
inexpensive and easy way to protect you, your family or your
business. In a nutshell this plan will keep you financially prepared for
all the special occasions in your life - your daughters wedding, your
childs university education or even a new office for your business by eliminating the burden that a shortage of money creates. In the
event of your untimely death, 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 companys profits, which
you will receive at the end of the policy period.
Reliance Cash Flow Plan: This insurance policy is designed for
those who have a recurring need for reinvestment in business or
look for short-term investment channels. The advantage of the policy
is that they need not part with a sizable amount of money at any one
time, but create, through regular premium payments, a periodic
return of lump sums which become available for reinvestment a the

higher returns, while providing simultaneously, substantial life cover.

Alternatively, it can be used to meet any immediate financial crisis in
the family like your son's college admission, your daughter's
engagement, and renovation of your home or perhaps, a holiday
abroad. The money is payable in installments. The first installment is
paid at the end of the 4th year and thereafter at the end of every 3rd
year.
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.
Reliance Special 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, disability or critical illnesses
Unit linked policy
A unit-linked policy is a life assurance policy in which the benefits
depend on the performance of a portfolio of shares.
Each premium paid by the insured person is split: a part is used
to provide life assurance cover, while the balance (after the deduction
of costs, expenses, etc.) is used to buy units in a unit trust. In this way,
a small investor can benefit from investment in a managed fund
without making a large financial commitment. As they are linked to the
value of shares, unit linked policies can go up or down in value.
Policyholders can surrender the policy at any time and the surrender
value is the selling price of the units purchased by the date of
cancellation 9lessexpense). A small part of the contribution is used for
providing life cover and the balance is invested in unit. Legal heirs are
entitled to the amount of insurance cover and entitled units in case of
death of the insured. Reliance Life Insurance Company Limited has
also offered the two Unit Linked Plans, which are listed as follows:
1. Reliance Market Return Plan.
2. Reliance Golden Years Plan.

The above two ULIP plans are discussed as follows:

3. 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 choice. 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. At the same time your investment
premiums provide you with insurance cover. 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.
4. Reliance Golden Years Plan: Reliance Golden Years Plan. The
Reliance Life Insurance no-worry stay happy retirement plan.
Reliance Golden Years Plan is a flexible package that provides
freedom of choice in choosing the type of investment, life cover,
vesting options such as commuting and annuity options.
Contributions provide Income tax savings as well. Reliance Golden
Years Plan, a flexible pension product is available for all individuals
who are between the ages of 18 and 65.
Marketing campaigns
Reliance Life insurance has very has a very strong brand recall
because of reliance brand image. Reliance life has launched
commercials as well as done outdoor campaigns from time to time. In
2009, Reliance life associated itself with the blockbuster movie 3 idiots
(tagline All is well) to promote another proposition jab hai saath
Reliance life insurance, all is well.
Reliance Life Product Table:
Retirement/pension plans

Reliance life traditional golden plan

Child plan

Reliance Child plan

Term Plan

Reliance Term plan

Term Plan

Reliance Simple term plan

Term Plan

Reliance Special term plan

Term Plan

Reliance Credit guardian plan

Term Plan

Reliance Special credit guardian plan

Saving & Investment Plan

Reliance Money multiplier plan

Saving & Investment Plan

Reliance Endowment plan

Saving & Investment Plan

Reliance Super five plus

Saving & Investment Plan

Reliance connect 2 life plan

Saving & Investment Plan

Reliance whole life plan

Saving & Investment Plan

Reliance cash flow plan

Table 2.1

Competitors
Private players: List of the Life Insurance companies in India as on 31st
December 2011

Life Insurance Corporation of

India
Bajaj Allianz Life
SBI Life

MetLife India
ING-Vysya
ICICI-prudential

TATA-AIG
Birla Sun Life
Sahara
IDBI Federal
Future generali India
Max New York
Bharti AXA
HDFC Standard

Organizational Structure

Canara HSBC OBC

AEGON Religare
DLF Pramerica
Star Union Dai-ichi
India First
Shriram
Kotak Mahindra Old Mutual
AVIVA
Table 2.2

AFMTCVDO
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tpain
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eo
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Graph 2.1

Now lets depict the market share of these players on diagram

Market share %

LIC

BAJAJ ALIANCE

ICICI PRUDENTIAL

HDFC STANDARD

SBI LIFE

BIRLA SUNLIFE

TATA AIG

MAX NEWYORK

AVIVA

KOTAK MAHINDRA OLD

MUTUAL

ING VYSYA

RELIANCE LIFE

MET LIFE

SAHARA

SHRIRAM LIFE

Graph 2.2

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. 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. It has the market share of approximately 7.56% in
the total market and it constitutes 40% of the market share among
private players. HDFC Standard comes third. SBI Life insurance
Company Limited comes fourth. ICICI Prudential is also one of the
fastest growing life insurance companies in India. Rest of the players
has market share below 2%.
Departments
Marketing Department:
Marketing department of reliance life insurance Company is of two
types. Online marketing department and Direct marketing department.
Online marketing department will advertises the company by telling
their plans and the reputation and department advertise the company
through agents.
HR Department:

It is the management of an organizations workforce, or human

resources. It is responsible for the attraction, selection, training, and
assessment and rewarding of employees, while also overseeing
organizational leadership and culture, and ensuring compliance with
employment and labor laws. In circumstances where employees desire
and are legally authorized to hold a collective bargaining agreement
the employees, HR will typically also serve as the companys primary
liaison with the employees representatives (usually a labor union).
Finance Department:
Finance is often defined simply as the management of money or fund
management. Modern finance however is a family of business activity
that includes the organization, marketing, and management of each
and money surrogates through a variety of capital accounts, instrument
and markets created for transaction and trading assets, liabilities and
risks.
Awards and Achievements
3rd largest private players in a span of just 4 years, moved from
11thposition to 3rd.
Amongst the fastest growing companies for 4 year in a row.
Continuous increase in market share over 4 years, from 1.9% in
2005-06 to 10.26%.
RLIC has achieved a growth rate of 21% while the private industry
has grown at 13%.
Fastest to reach the 5 million policy mark.
Largest private insurer in terms of policy count in 2009-10.
1250 branches 2, 00,000 advisors and over 18,000 employees.
RLIC continues to be amongst the foremost Life Insurance
companies in India to certified ISO 9001:2000 for all processes.

 Awarded the Jamnalal Uchit Vyavahar puraskar 2007 Certificate

of Merit in financial services category by council for fair Business
practices(CFBP)
The Company has also won the DL Shah Quality Council of India
Commendation Award in the services category in Feb 2008 for its
work on promoting self help channel for service.

Organizational study of Reliance Life Insurance with

Reference to customer satisfaction.
Statement of the Problem
Reliance life insurance is one of the best insurance companies in
India. They have many branches in all states. They have gathered a lot
of consumers to build their market n insurance sector.
Consumer satisfaction is the very essential factor for doing any type of
business. A firm should maintain a level of consumer satisfaction with
the services they provide. Consumers satisfaction is hence essential
for the company in order to maintain the consumers to be loyal.
Objectives of the Study:
To find out overall standard of Reliance Life Insurance with
respect to service provided to customers.
To identify the factors affecting customer satisfaction in life
insurance sector.
To offer suggestions based on findings.
Need for the Study:
Review of literature reveals that very little research has been done on
insurance industry in India. Considering the fact that insurance is
coming up in a big way in India, there is an emergent need for doing
research on various facets of insurance industry in India. The need and

significance

of

the

study

can

be

summarized

as:

The basic need for the study is to know how much customers are
satisfied with services of reliance life insurance.
Insurance has a very long history but most of the studies are done
from the finance point of view not from marketing view point. Such
studies are important because companies need to market
themselves to increase their market share. This research project
is an effort to fill that gap.
As revealed by the review of literature, customer satisfaction has
been
ignored
in
the
field
of
insurance
services.
Scope of Study:
The study is based on the survey conducted on various customers who
shared their satisfaction levels with reliance life insurance Company
and their services. The scope of the study is restricted to the Life
Insurance sector only. Although there are 23 life insurance companies
in the market Life Insurance Corporation (LIC) holds 64 percent of the
market share.
Methodology of the Study:
Methodology of the study adopted is the survey method. For primary
data a sample size of 40 customers were contacted and data is
obtained from them through questioners. Respondents were contacted
at their work places itself for their convenience. The findings are limited
to the city of Bangalore. For secondary data marketing books,
magazines, journals were referred.
Sources of data:
For the purpose of this study data is collected from two sources
mentioned above.
Namely:
1. Primary source

2. Secondary source
1. Primary source:
It is the original source. The data is collected directly from
respondents through questioners, personal interviews and through
observation.

2. Secondary source:
These are the sources containing data which have been collected
and compiled for another purpose. This source consists of readily
available information and already compiled statistical statement whose
data may be used by researchers for their study.
Tools for Data Collection
A carefully planned structured questionnaire was designed to collect
data from the insurance holders. The following aspects were covered
in the questionnaire.
Sampling:
Sampling is one of the major tools for marketing research, which is
connected with collecting, analyzing and interpreting data. It involves
the study, inconsiderable details, of relatively small numbers of
information taken from a larger group. It is a process of extracting
sample from a population. Defining the population requires that one
can describe the characteristics of the group which information is
required in clear unambiguous terms. The population comprises
individuals. Households, firms and other organizations.
Sampling Technique:
The technique following is "Simple Random Sampling.
Simple random sampling:
A simple random sample is a subset of individuals (a sample) chosen
from a larger set (a population). Each individual is chosen randomly

and entirely by chance, such that each individual has the same
probability of being chosen at any stage during the sampling process.
Sample Size:
The questionnaire contains 10 questions and sample size is 40.

Limitations of the Study:

The case study pertains to only one branch of Reliance Life
Insurance Company due to the limitation of time frame.
The sample size of 40 might not represent the perception of
whole population.
The opinion expressed by respondents may be biased.
Another limitation is time shortage. If given more time the reports
must have been more concluding.
This study is restricted to customers only.
Sample size is restricted to only 40 respondents due to time
constraints.
Data Analysis and Interpretation
Analysis was done on the responses received from the people that
were interviewed. In this section we will look at the questions detail, the
count of responses received, the percentage of response received.
Basis the same we will arrive at a finding and then proceed to draw a
logical conclusion from the same. The questionnaire in detail is
attached at the end of this report.

All the Respondents were assured of full confidentially after they

agreed to our request of answering the questionnaire for the benefit of
study. Further they were also informed that the information being
provided by them was going to be used strictly for an educational
purpose and only towards the same.
In this chapter ahead we will deal with each one of these questions
individually and understand what results can be derived from the same
.Every question will be followed by a logical chart providing a visual
representation of the findings.
Table 4.1 Showing Importance of Insurance
Options
No. of Responses
Percentage
Yes
35
87.5
No
3
7.5
Dont know
2
5
Total
40
100
Table 4.1
Analysis
The above table shows that out of 40 respondents, 35 comprising
87.5% of the total sample size feels that yes insurance is important,
while 3 comprising 7.5% feels that it is not important and remaining 5%
dont know.

Graph representing the responses received in Percentage

100
90
80
70
60

Yes

50

No

40

Don't know

30
20
10
0
Response

Graph 4.1
Interpretation
From the above chart we can infer that most of the people think that
insurance is important, while a mere population says No, insurance is
not important and remaining minority says no idea. The analysis shows
that people are highly educated and knows the importance of
insurance in their life.

Table 4.2 Showing Quality of Service from Company Advisors

Options
No. of Responses
Percentage
Excellent
5
12.5
Good
28
70
Fair
5
12.5
Poor
2
5
Total
40
100
Table 4.2
Analysis

The above table shows that out of 40 respondents, 5 comprising

12.5% of the total sample size say reliance life insurance is excellent,
while 28 comprising 70% feels that it is good, 5 people say just fair and
remaining 5% regard it a poor company.
Graph representing the responses received in Percentage

Response

Excellent
Good
Fair
Poor

Graph 4.2
Interpretation
From the above chart we can understand that a major chunk of the
population grades the service received as good, while an equal
percentage people feel that it is excellent and fair service. This is
actually a good point for the company that most of the people grade
their service as good. Their should be a little improvement where we
could take a little extra care of customers and have more satisfied
customers.
Table 4.3 Showing
Insurance
Options
Definitely
I think so yes
I dont think so
No

Recommendation analysis of Reliance Life

No. of Respondents
15
21
3
1

Percentage
37.5
52.5
7.5
2.5

Total
Table 4.3

40

100

Analysis
The above table shows that out of 40 respondents, 15 comprising
37.5% of the total sample size says they would definitely recommend
Reliance to their friend in need, while 21 comprising 52.5% feels they
think they will recommend, other 10% had negative response.

Graph representing the responses received in Percentage

Response

Definitely
I think so yes
I dont think so
No

Graph 4.3
Interpretation
From the above chart we can interpret that 90% of the people are
positive when the question of recommendation arises. This is a very
good point for the company. In a country like India a word of mouth has
a lot of value. This would help in business growth for the company.
Table 4.4 Showing Satisfaction levels regarding Amount of
Service Received
Options
No. of Respondents Percentage
Very satisfied
20
50
Mostly satisfied
12
30

Quite indifferent
6
15
Dissatisfied
2
5
Total
40
100
Table 4.4
Analysis
The table shows that out of 40 respondents, 20 comprising 50% of the
total sample size says they are very satisfied with Reliance, while 12
comprising 30% feels mostly satisfied. Other 20% feels lack in service
quantity.
Graph representing the responses received in Percentage

Response
50
45
40
35
30
25
20
15
10
5
0

Response

Graph 4.4

Interpretation
From the above chart it is very clear that half of the people in Reliance
family are very satisfied in terms quantity service they received. Nearly
a third of people feel mostly satisfied, whereas remaining people are
not satisfied with quantity service, the company needs to improve in
terms of service and satisfy the customers. This is a very crucial point
as negative things spread faster than the positive ones.
Table 4.5 Showing whether the guidance received helped to deal with the
problems more effectively
Options
Yes
No

No. of respondents
32
8

Percentage
80
20

Total

40

100
Table 4.5

Analysis
The table shows that out of 40 respondents, 32 comprising 80% of the
total sample size were able to deal with their problems from effectively
from the guidance they received from the companys insurance
advisors, 8 people comprising another 20% were dissatisfied.
Graph representing the responses received in Percentage

Response
80
70
60
50

Response

40
30
20
10
0
Yes
No

Graph 4.5

Interpretation
The chart above clarifies that majority of the people are benefitted from
the guidance which they received from companys insurance advisors.
This is a very strong and positive point, which also shows the
employees commitment to companys motive. Very less people are not
benefitted it could be result of 6is-selling by advisors, which has to
taken care by giving proper training to the advisors.
Table 4.6 Showing whether clients would invest in Reliance Life
Insurance if required in future again
Options
Definitely
I think so yes
I dont think so yes
No, definitely not

No. of responses
27
10
2
1

Percentage
67.5
25
5
2.5

Total

40

100
Table 4.6

Analysis
The above table shows that out of 27 respondents comprising 67.5%
of the total sample size says they would definitely go for Reliance if
required in future, while 10 comprising 25% feels they think they will go
with Reliance and other 7.5% had negative thought.

Graph representing the responses received in Percentage

Response

Definitely
I think so yes
I dont think so yes
No, definetely not

Graph 4.6

Interpretation
The chart above shows that most of the customers would come back
to Reliance if they needed another insurance which clearly shows the
level of highly satisfied customers, and a few of the dissatisfied
customers said they would not like to go for Reliance insurance in
future. Loosing on customers is a setback for the company and it
should work on it.

Table 4.7 Showing need Satisfaction

Options
Yes
Very much yes
Not much
No
Total

No. of responses
27
7
4
2
40
Table 4.7

Percentage
67.5
17.5
10
5
100

Analysis
The above table shows that out of 2 respondents comprising 5% of the
total sample size couldnt meet their needs of the insurance policy thy
took, while 85% feel they got the right policy meeting their needs. This
is possible due to a wide range of products.
Graph representing the responses received in Percentage

Response

Yes
Very much yes
Not much
No

Graph 4.7

Interpretation
The above pie chart shows the responses of people when asked
whether the suggested products met their needs, a huge chunk of
people said yes the insurance plan suggested to them was helpful to
meet their needs.
Table 4.8 Showing factors of choosing Reliance Life Insurance

Options
Personal interest
Friends
Family
Advertisements
Total

No. of Responses
12
11
4
13
40
Table 4.8

Percentage
30
27.5
10
32.5
100

Analysis
The above table shows that out of 40 respondents, 12 comprising 30%
of the total sample size is with Reliance due to their personal interest in
the company, 37.5% are influenced by family and friends. Others
comprising 32.5% are influenced by advertisements.

Graph representing the responses received in Percentage

Response
35
30
25
20

Response

15
10
5
0
Personal interest

Friends

Family

Graph 4.8

Interpretation

Advertisements

The above bar diagram depicts the factors of influence, which made
people to be a part of the huge Reliance family. The responses show
an equal amount of influence from friends, personal interest and
advertisements. Family influence was much lower than the rest of
three.

Table 4.9 Showing Recommendation Levels

Options
Excellent
Very good
Fair
Poor
Total

No. of Responses
12
17
10
1
40
Table 4.9

Percentage
30
42.5
25
2.5
100

Analysis
The above table shows that out of 40 respondents, 12 comprising 30%
of the total sample size considers Reliance life insurance as an
excellent company. 17 comprising 42.5% think of it as very good
company, 10 say just fair and remaining 1 i.e. 2.5% consider poor.
Graph representing the responses received in Percentage

Response

Excellent
Very good
Fair
Poor

Graph 4.9

Interpretation

The above chart describes customer responses, when asked to

recommend the company to their friends. A third of them would say
excellent, other major chunk would consider it very good. This shows
the trust of people in the company. It is a very positive thing that
companys name hold a great value to its investors customers.
Table 4.10 Showing areas of Improvement
Options
No. of Respondents Percentage
Marketing
20
50
Customer relations
9
22.5
Products
11
27.5
Total
40
100
Table 4.10
Analysis
The above table shows that out of 40 respondents, 20 comprising half
of the total sample size said Reliance life insurance need to improve
on marketing, 9 said customer relations and remaining 11 said
Reliance Life should work on its Products.

Graph representing the responses received in Percentage

Response

Marketing
Customer relations
Products

Graph 4.10
Interpretation
The above chart describes customer responses, when asked about on
which area they think Reliance Life Insurance should improve on, half
of the respondents mentioned marketing as area of improvement.
Remaining half people mentioned customer relations and products as
the areas of improvement in almost equal percentage.

ANNUAL REPORT

(Rs. In 000)

REVENUE ACCOUNT FOR THE YEAR ENDED 31st March, 2008

Fire Insurance Business

Particulars
Schedule
Current Year
Previous Year

Premium Earned (Net)

1
384,489
239,358
Profit / (loss) on sale/redemption of Investments (Net)
16,412
7,756
Interest, Dividend & Rent Gross
33,397
19,379

TOTAL (A)
434,298
266,493

Claims Incurred (Net)

2
267,375
178,620
Commission & Brokerage (Net)
3
(265,650)
(391,572)
Operating Expenses related to Insurance Business

4
188,190
121,755

TOTAL (B)
189,915
(91,197)

Operating Profit/(Loss) from Fire Business

C= (A) - (B) transferred to Profit & Loss Account

244,383
357,690

(Rs. In 000)

REVENUE ACCOUNT FOR THE YEAR ENDED 31st March, 2008

Marine Insurance Business

Particulars
Schedule
Current Year
Previous Year

Premium Earned (Net)

1

109,364
62,071
Profit / (loss) on sale/redemption of Investments (Net)
3,923
949
Interest, Dividend & Rent Gross
7,983
2,372

TOTAL (A)
121,270
65,392

Claims Incurred (Net)

2
128,784
58,119
Commission & Brokerage (Net)
3
(8,562)
(2,641)
Operating Expenses related to Insurance Business
4
59,064
31,937

TOTAL (B)
179,286
87,415

Operating Profit/(Loss) from Marine Business

(58,016)
(22,023)
C= (A) - (B) transferred to Profit & Loss Account

(Rs. In 000)

REVENUE ACCOUNT FOR THE YEAR ENDED 31st March, 2008

Miscellaneous Insurance Business

Particulars
Schedule
Current Year
Previous Year

Premium Earned (Net)

1
9,106,481
2,141,150
Profit / (loss) on sale/redemption of Investments (Net)
202,633
39,797
Interest, Dividend & Rent Gross
412,341
99,425
Exchange Gain / (loss)
(53)
518

TOTAL (A)

9,721,402
2,280,890

Claims Incurred (Net)

2
7,110,666
1,495,104
Commission & Brokerage (Net)
3
(523,411)
(400,073)
Operating Expenses related to Insurance Business
4
5,381,336
1,655,532

TOTAL (B)
11,968,591
2,750,563

Operating Profit/(Loss) from Miscellaneous Business

C= (A) - (B) transferred to Profit & Loss Account

(2,247,189)
(469,673)

(Rs. In 000)

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st March, 2008

Particulars
Current Year
Previous Year

Operating Profit / (Loss) transferred from

Revenue Account

a. Fire Insurance
244,383
357,690
b. Marine Insurance
(58,016)
(22,023)
c. Miscellaneous Insurance
(2,247,189)
(469,673)
Income from Investments
(2,060,822)
(134,006)

Interest, Dividend & Rent Gross

244,311

106,999
Profit / (loss) on sale/redemption of Investments (Net)
120,060
42,829
Other Income
364,371
149,828

Profit on sale of assets

282
27
Miscellaneous Income
70,853
8,540

71,135
8,567
TOTAL (A)
(1,625,316)
24,389

Other Expenses

Expenses other than those related to Insurance

Business
(3,110)
(1,954)
Exchange Gain / (loss)

TOTAL (B)
(3,110)
(1,954)

Profit Before Tax

(1,628,426)
22,435
Provision for Taxation

Current Tax
3,000
Deferred Tax
(7,656)
Fringe Benefit Tax
25,100
10,803
Income Tax earlier year tax
1,986

Net Profit After Tax

(1,655,512)
16,288
Balance of Profit / Loss brought forward from
524,040
507,752
last year

Balance carried forward to Balance Sheet

(1,131,472)
524,040

(Rs. In 000)

BALANCE SHEET AS AT 31st March, 2008

Particulars
Schedule
Current Year
Previous Year
Sources of funds

Share Capital
5&5A
1,071,538
1,030,721
Reserves and Surplus
6
4,998,467
1,563,324
Share Application Money
Fair Value Change Account
(98,197)
9,769

Total
5,971,808
2,603,814

Application of funds

Investments
7
13,107,340
6,331,468
Fixed Assets
8
583,211
288,873
Deferred Tax
8,535
8,535
Current Assets

Cash and Bank Balances

9
724,912
181,491
Advances and Other Assets
10
2,979,464
553,283
Sub-Total (A)
3,704,376
734,773
Current Liabilities
11
5,763,768
1,783,908
Provisions
12
6,799,358
2,975,928
Sub-Total (B)
12,563,126
4,759,836
Net Current Assets (C = A - B)
(8,858,750)
(4,025,062)

Miscellaneous Expenditure

(to the extent not written off or adjusted)

Debit Balance in Profit & Loss Account
1,131,472
Total
5,971,808
2,603,814

Significant Accounting Policies

13

Notes on Accounts
14

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS

Schedule 1

Premium Earned (Net)

(Rs. In 000)

Particulars
Financial
Premium
Premium on
Premium on
Net Premium
Adjustment
Net
year
from direct
reinreinsurance
for change in
Premium
ending
business
surance
ceded
reserve for
Earned

written
accepted *

unexpired

risks *

1
2
3
4
5
6
7
8

Fire
Mar-08
1,432,700
87,686
1,073,216
447,170
(62,681)
384,489
Mar-07
1,458,824
18,902
1,138,339
339,387
(100,029)
239,358
Marine Cargo
Mar-08
316,412
181,423
134,988
(29,618)
105,370
Mar-07

165,270
80,523
84,747
(22,906)
61,841
Marine Hull
Mar-08
26,036
20,680
5,356
(1,362)
3,994
Mar-07
13,279
9,004
4,275
(4,045)
230
Marine Total
Mar-08
342,448
202,103
140,344
(30,980)
109,364
Mar-07
178,549
89,527
89,022
(26,951)
62,071
Motor
Mar-08
12,673,691
1,475,907
4,241,377
9,908,221
(2,742,253)
7,165,968
Mar-07
4,555,068
989,578
3,565,490
(2,073,683)
1,491,806
Employers

Mar-08
85,885
42,763
43,122
(8,038)
35,084
Liability

Mar-07
40,188
13,301
26,887
(6,541)
20,346
Public Liability
Mar-08
55,137
43,209
11,928
5,517
17,445
Mar-07
60,430
29,325
31,105
(13,992)
17,112
Engineering
Mar-08
1,035,366
11,680
791,281
255,765
(52,562)
203,203
Mar-07
936,022
2,951
762,035
176,938
(64,094)
112,844
Aviation

Mar-08
74,110
72,660
1,450
(404)
1,046
Mar-07
71,942
71,355
587
205
792
Personal
Mar-08
403,522
273,565
129,957
(49,479)
80,478
Accident
Mar-07
154,903
124,898
30,005
(10,702)
19,302
Health
Mar-08
2,756,198
561,072
2,195,126
(833,456)
1,361,670
Mar-07
671,768
136,233
535,535
(233,794)
301,741
Other Misc.
Mar-08
605,114
363,740
241,374
213
241,587

Mar-07
994,581
746,395
248,186
(70,980)
177,206
Misc Total
Mar-08
17,689,024
1,487,587
6,389,667
12,786,943
(3,680,463)
9,106,481
Mar-07
7,484,902
2,951
2,873,120
4,614,733
(2,473,581)
2,141,150

Total MAR08
19,464,172
1,575,273
7,664,987
13,374,457
(3,774,124)
9,600,334

Total MAR07
9,122,275
21,853
4,100,986
5,043,142
(2,600,561)
2,442,579

* - Includes TP Pool Transactions (Refer point no. 13 of notes to accounts, schedule 13)

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS

Schedule 2

Claims Incurred (Net)

(Rs. In 000)

Particulars
Financial
Claims Paid
Claims Paid
Claims
Net Claims
Outstanding
Outstanding
Net Claims

y
e
a
r
f
r
o
m
d
i
r
e
c
t
o
n
R
e
c
o
v
e
r
e
d
o
n
P
a
i
d
(
3
+
4
5
)

Claims on
Claims on
Incurred

ending
business
reinsurance
reinsurance

31-03-2008 *
01-04-2007
(6+7-8)

written
Accepted
ceded

1
2
3
4
5
6
7
8
9

Fire
Mar-08
650,086
89
477,818
172,357
227,794
132,776
267,375

Mar-07
355,187

2
0
9
2
0
6
,
7
2
4
1
4
8
,
6
7
2
1
2
5
,
1
9
9
9
5
,
2
5
1
1
7
8
,
6
2
0

M
a
ri
n
e
C
a
r
g
o

Mar-08
250,555
128,552
122,003
41,592
35,515
128,080

1
2
8
,
7
8
4

Mar-07
110,400
56,489
53,911
35,515
32,281
57,145

Marine Hull
Mar-08
13,557
12,758
799
1,004
1,099
704

Mar-07
8
1
7
1,099
132
975

Marine Total
Mar-08
264,112
141,310
122,802
42,596
36,614

M
a
r0
7
1
1
0
,
4
0
9
5
6
,
4
9
0
5
3
,
9
1
9
3
6
,
6
1
4

32,413
58,120

Motor
Mar-08
3,632,951
747,996
2,884,955
2,961,359
544,980
5,301,334

Mar-07
564,964
118,739
446,225
544,980
76,323
914,882

18
Employers Liability
Mar-08
13,967
2,840
11,127
7,082
4,980
13,229

Mar-07
9,654
2,080
7,574
4,980
3,595
8,959

P
u
b
li
c
L
i
a
b
il
it
y
M
a
r
0
8
5
3
3
1
2
2
7
1
2
4
,
7
2
5
(
3
,
9
9
1
)

M
a
r0
7

840
351
489
4,725
3,161
2,053

Engineering
Mar-08
448,364
80
393,363
55,081
50,256
40,011
65,327

Mar-07
83,758
2
54,909
28,851
40,011
10,745
58,117

Aviation
Mar-08
22,417
22,026
391
200
300
291

Mar-07
307
59
248
300
482
66

P
e
r
s
o
n
a
l
A
c
c
i
d
e
n
t
M
a
r
0
8
2
0
7
,
2
6
9
1
4
9
,
5
4
4
5
7
,
7
2
5
2
4
,
8
8
8
5
4
2

82,071

Mar-07
64,008
49,752
14,256
542
24,586
(9,788)

Health
Mar-08
1,664,329
330,743
1,333,587
247,899
54,561
1,526,925

Mar-07
379,085
76,198
302,887
54,562
16,459
340,990

Other Misc.
Mar-08
297,080
151,723
145,357
61,691
81,569
125,479

Mar-07
256,145
149,429
106,716

8
9
,
1
4
6
1
6
,
0
3
7
1
7
9
,
8
2
5

M
i
s
c
T
o
t
a
l
M
a
r
0
8
6
,
2
8
6
,
4
3
1
8
0

1,798,266
4,488,245
3,354,087
731,666
7,110,666

Mar-07
1,358,761
2
451,517
907,246
739,246
151,388
1,495,104

Total MAR08
7,200,629
169
2,417,394
4,783,404
3,624,478
901,057
7,506,825

Total MAR07
1,824,356

2
1
1
7
1
4
,
7
3
1
1
,
1
0
9
,
8
3
6
9
0
1
,
0
5
9
2
7
9
,
0
5
2
1
,
7
3
1
,
8
4
3

* - Includes TP Pool Transactions (Refer point no. 13 of notes to accounts, schedule13)

Annual Report 2007-2008

Reliance General Insurance

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
Schedule 3

Commission (Net)

(Rs. In 000)

Particulars
Financial
Commission paid
Brokerage paid
Commission
Commission
Net
year
on direct
on direct
paid on
received from
commission
ending
business
business
reinsurance
reinsurance
(3+4+5-6)

written
accepted
ceded
1
2
3
4

5
6
7
Fire
Mar-08
9,630
73,830
4,814
353,924
(265,650)
Mar-07
9,833
35,977
437,382
(391,572)
Marine Cargo
Mar-08
4,491
18,730
30,233
(7,012)
Mar-07
4,935
9,186
15,281
(1,160)
Marine Hull
Mar-08
4
2,318
3,872
(1,550)
Mar-07
4
466
1,951
(1,481)
Marine Total
Mar-08
4,495
21,048
34,105
(8,562)
Mar-07
4,939

9,652
17,232
(2,641)
Motor
Mar-08
31,086
81,514
422,354
(309,754)
Mar-07
25,228
70,566
182,527
(86,733)
Employers Liability
Mar-08
1,099
3,325
4,096
328
Mar-07
692
1,477
2,532
(363)
Public Liability
Mar-08
149
3,216
3,459
(94)
Mar-07
1,420
4,846
4,924
1,342
Engineering
Mar-08
2,586
44,525
1,308
234,031
(185,611)
Mar-07

3,814
30,806
239,447
(204,827)
Aviation
Mar-08
696
2,274
(1,578)
Mar-07
206
3,980
(3,774)
Personal Accident
Mar-08
2,384
22,642
82,170
(57,144)
Mar-07
1,706
13,125
38,049
(23,218)
Health
Mar-08
28,315
148,336
137,823
38,828
Mar-07
6,669
41,581
35,790
12,460
Other Misc.
Mar-08
5,517
27,526
41,428
(8,385)

Mar-07
9,358
20,155
124,471
(94,958)
Misc Total
Mar-08
71,136
331,780
1,308
927,635
(523,411)

Mar-07
48,886
182,761
631,720
(400,073)
Total MAR08
85,261
426,658
6,122
1,315,663
(797,622)
Total MAR07
63,658
228,390
1,086,334
(794,286)

19

Annual Report 2007-2008

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS

(Rs. In 000)

Particulars
Current Year
Previous Year
Schedule-4

Operating Expenses related to insurance business

Employees remuneration & welfare benefits

1,288,308
468,615
Companys contribution to Provident fund and others
78,815
27,027
Staff Welfare
101,103
32,785
Travel, conveyance and vehicle running expenses
169,435
75,588
Rents, rates & taxes
238,534
52,973
Repairs
111,057

20,415
Printing & Stationery
296,498
106,340
Communication expenses
206,301
27,804
Postage expenses
308,082
93,637
Legal & professional charges
309,394
74,608
Directors Sitting fees

860
700
Auditors remuneration

a. Audit fees
1,900
1,200
b. Tax Audit fees
300
225
c. Certification Fees
50
2,250
1,425
Advertisement and Publicity
215,074
48,379
Interest and Bank Charges

38,229
4,323
Entertainment expenses

8,981
4,685
Office maintenance expenses

82,028
13,017
Office management expenses
1,752,653
671,243
Recruitment & Training expenses

57,734
23,993
Depreciation
187,670
45,789
Subscriptions and membership fees

3,867
5,415
Coinsurance Expenses (net)

5,231
2,245
Loss minimisation expenses

Miscellaneous expenses
169,596
10,172
TOTAL
5,631,700

1,811,178
Allocation:

Fire Revenue Account

188,190
121,755
Marine Revenue Account

59,064
31,937
Miscellaneous Revenue Account
5,381,336
1,655,532
Expenses not relating to Insurance Business

3,110
1,954
taken in Profit & Loss A/c

TOTAL
5,631,700
1,811,178

Schedule-5
Current Year
Previous Year
Share Capital

Authorised Share Capital

20,00,00,000 Equity Shares of Rs.10 each

2,000,000
2,000,000
Issued, Subscribed and Paid-up Share Capital

10,71,53,759 Equity Shares of Rs.10 each fully paid

1,071,538
1,030,721

Schedule-5A
Current Year
Previous Year
Pattern of Share Holding (As certified by the Management)

Shareholder
No. of Shares
% of Holding
No. of Shares
% of Holding
Promoters- Indian

Holding company- Indian

107,153,759
100%
103,072,127

100%
Total
107,153,759
100%
103,072,127
100%

20

Reliance General Insurance

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
Schedule-6
Current Year
Previous Year
Reserves and Surplus

Security Premium
4,998,467
1,039,284
Surplus in Profit and Loss Account
524,040

Total
4,998,467
1,563,324

Schedule-7
Current Year
Previous Year

Investments

Long Term Investments

Government securities and Government guaranteed bonds

4,440,954
1,900,986
including Treasury Bills

Debentures/ Bonds
2,345,196
705,843
Investments in Infrastructure and Social Sector
3,462,862
715,538
Other than Approved Investments
149,847

Equity shares
1,004,256
11,403,115
441,097
3,763,464
Short Term Investments

Government securities and Government guaranteed bonds

106,927
including Treasury Bills

Debentures/ Bonds
241,152
1,844,173
Investments in Infrastructure and Social Sector
250,007
245,059
Mutual Funds

1,202,500
321,717
Other than Approved Investments
10,566
1,704,225
50,128
2,568,004

Total
13,107,340
6,331,468

Notes :
The market value of all the Investments as at 31st March, 2008 is Rs. 12,995,129 thousands (Previous year Rs. 6,220,350
thousands)
Government Securities includes Rs. 106,550 thousands (Previous Year Rs. 107,310 thousands) deposit under Section 7 of the
Insurance Act, 1938.
All the above investments are performing assets.

21

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS

Schedule - 8 Fixed Assets as at 31st March

(Rs. In 000)

Description
Gross Block

Depreciation
Net Block

A
s
a
t
A
d
d
it
i
o
n
s
D
e
d
u
c
ti
o
n
s
A
s
a
t
A
s
a
t
F
o
r
t
h
e
y
e
a
r

Deductions
As at
As at
As at

01-04-07

31-03-08
01-04-07

31-03-08
31-03-08
31-03-07

Furniture & Fittings

82,730
34,907
117,637
11,424
33,569
44,993
72,644
71,306

L
e
a
s
h
o
l
d
I
m
p
r
o
v
m
e
n
t
s
1
6
,
9
5
4
1
,
1
0
6
1
8
,
0
6
0
1
,
0
6
2

5,588
6,650
11,410
15,892

Information Technology
111,982
135,783
247,765
34,733
62,983
97,716
150,049
77,249

Equipment

I
n
t
a
n
g
i
b
l
e
A
s
s
e
t
1
5
,
9
7
7
1
7
6
,
7
5
9
1
9
2
,
7
3
6

10,987
53,520
64,507
128,230
4,990

(Computer Software)

22
Vehicles
28,462
5,654
3,259
30,857
10,593
4,880
1,719
13,754
17,103
17,869

O
f
fi
c
e
E
q
u
i
p
m
e
n
t
5
7
,
9
2
0
1
6
0
,
2
0
7
4
6
8
2
1
7
,
6
5
9

9,168
26,763
316
35,615
182,043
48,752

C
a
p
it
a
l
W
I
P
5
2
,
8
1
5

Plant & Machinery

7,004
7,004
367
367
6,637
-

3
7
,
7
2
0
1
5
,
0
9
5
1
5
,
0
9
5

52,815

Total
366,840
521,420
41,447
846,813
77,967
187,670
2,035
263,602
583,211
288,873

Previous Year
66,890
300,984
1,034
366,840
32,826
45,790

6
4
9
7
7
,
9
6
7
2
8
8
,
8
7
3
3
4
,
0
6
4

Annual Report 2007-2008

Reliance General Insurance

(Rs. In 000)
Schedule-9
Current Year
Previous Year
Cash and Bank Balances

Cash (including cheques, drafts and stamps on hand)

12,715
13,178
Bank Balances

(a) Short Term Deposit Accounts

(b) Current Accounts
712,197
712,197
168,313
168,313

Total
724,912
181,491

(Rs. In 000)

Schedule-10
Current Year

Previous Year
Advances and Other Assets

Advances

Prepayments
34,940
44,383
Advance tax paid and taxes deducted at source
89,057
90,599
(Net of provision for taxation)

Rental Deposits
58,339
51,657
Advances to Staff
2,174
2,325
Unutilised Service Tax Credit
65,803
3,047
Other Advances
244,265
494,578
60,059
252,070
Other Assets

Income accrued on investments

331,104
131,617
Outstanding Premium
-

2,931
Agents Balances

Due from other entities carrying on insurance business

2,121,640
140,015
ERF Investment in Fixed Deposit with Banks
32,142
2,484,886
26,650
301,213

Total
2,979,464
553,283

(Rs. In 000)

Schedule-11
Current Year
Previous Year
Current Liabilities

Agents Balances
28,638
3,764
Balances due to other insurance companies
409,929

492,219
Premium received in Advance
45,991
39,395
Unearned Commission
0
Sundry creditors
333,595
80,709
Claims Outstanding
3,624,478
901,397
Environmental Relief Fund Payable
32,139
26,523
Bank Overdraft
1,288,998
239,901

Total
5,763,768
1,783,908

(Rs. In 000)

Schedule-12
Current Year
Previous Year

Provisions

Reserve for Unexpired Risk

6,722,954
2,948,830
Provision for Leave Encashment
76,404
27,098

Total
6,799,358
2,975,928

23

Annual Report 2007-2008

Registration No. and Date of Registration with the IRDA : Regn. No. 103 dated 23.10.2000
RECEIPTS AND PAYMENTS ACCOUNT FOR THE PERIOD ENDED 31st March, 2008

(Rs. In 000)

Particulars
Current Year
Previous Year

Cash and cash equivalents at the beginning of the year

(58,411)
108,385
Cash flows from operating activities

Direct Premiums received

19,470,767
9,149,970
Payment to other insurance companies net of claims and
(4,576,462)
(2,087,245)
commission

Direct Claims Paid

(7,200,632)
(1,824,356)
Direct Commission / Brokerage Payments
(487,046)
(291,944)
Expenses of Management
(4,957,098)
(1,787,598)
Advances, Deposits, Staff loans given
(244,334)
(97,593)
Income tax paid
(25,220)
(40,706)
Wealth tax paid
(166)
(48)
Other Receipts/payments
69,017
443

123 | P a g e

Net Cash flow

2,048,827
3,020,923
Cash flows from investing activities

Purchase of investments (Net)

(74,054,635)
(7,088,924)
Sale of invetsment (including gain/loss)
67,485,469
6,667,962
Sale of Fixed Assets ( including gain/loss)
1,857
1,060
Purchase of fixed Assets
(485,735)
(300,983)
sale of fixed Assets (including gain/loss)

Interest, Dividends received

498,544
143,320
Net Cash flow
(6,554,501)
(577,565)
Cash flows from financing activities

Capital infusion
3,999,999
1,050,000
Cash and cash equivalents at the end of the year including
(564,086)
(58,411)
Bank Overdraft

124 | P a g e

CONCLUSION
Majority think that insurance is important, at the same time
there are very less people who dont know the significance
of insurance.
A tenth of the people consider the information received
from company advisors as excellent, majority grade it
good. Whereas a very minor population consider advisor
service as poor.
It was found that a fair population would definitely
recommend Reliance Life Insurance to friend in need. Half
of the people said they would also probably do the same.
Very minute population had negative response.
Half of the people in Reliance family are very satisfied in
terms quantity service they received before and after the
sales of insurance product. A third is mostly satisfied,
whereas a fifth of population is not satisfied with quantity
service.
Findings show that almost all people could deal with their
problems effectively after the insurance guidance. A fifth of
people said it wasnt helpful for them and they couldnt
tackle the problems as they thought.
Findings show that almost all people would choose
Reliance if they had to take another insurance.

125 | P a g e

 It was found that almost all people were satisfied with the
insurance product while a tenth of them think the
insurance plan couldnt help exactly the way they
thought/advisor told.
It was found that people had equal influence from friends,
Personal Interest & advertisements.

The study shows that expect a fourth of population others

consider Reliance a good company.

Half of the people say marketing as main area to be

improved. Other half consider customer relations and
product development equally.

126 | P a g e

BIBLIOGRAPHY
WWW.GOOGLE.COM
http://www.reliancelife.com
http://www.slideshare.net
WIKIPEDIA

SHREERAJ HARIHARAN
ROLL NO 36
M.COM PART- I
SEMESTER- II

127 | P a g e