Final project report on

“COMPARATIVE STUDY OF INSURANCE PLANS”

Submitted In Partial Fulfillment of Requirements for the Award of the Degree Of

MBA

Of

Punjab Technical University

Session 2013-2015

Under The Guidance Of

Ms. Puneet Kamal

Submitted by

Rozy Manhas

Roll no.1305164

BIS GROUP OF INSTITUTES,GAGRA

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 Declaration

I hereby declare that the research project “COMPARATIVE STUDY OF

INSURANCE PLANS” titled is my own original work and this report has not been submitted to
any university and institute for award of any professional degree/diploma.

Date :

Place:

Signature of candidate

Rozy Manhas

Roll No: 1305164

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 ACKNOWLEDGEMENT

I gratefully acknowledge the succor, support and favor extended to me and my project guide Mr.
Omkar Singh Banyal (Branch Manager), whose continuous supervision, expert guidance,
ceaseless motivation and unfailing courtesy stood by me in executing this arduous work from its
conception to completion.

I wish to thank all department-heads who in spite of their pre occupation

and busy schedule in the office, left no stone unturned in enhancing my knowledge, skills and
will to achieve the desired target.

The purpose of this acknowledgement will be incomplete if I fail to mention the continuous
inspiration and support offered by the faculty of MBA of BIS College gagra.

This project has given me the opportunity to work and observe from close quarters, the
functioning of one of India’s largest and most prestigious companies. The completion of this
project fills me with a sense of achievement and satisfaction.

Rozy Manhas

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 INDEX
1. REVIEW OF LITERATURE 6-11
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 12-29
2.1 About Reliance Life Insurance
2.2 History
2.3 Role of IT at Reliance Life Insurance
2.4 Mission
2.5 Core Values
2.6 Future Plans
2.7 Branches
2.8 Reliance life insurance plans
2.9 Max New York insurance plans
3 RESEARCH METHODOLOGY 30-36
4 ANALYSIS AND COMPARISON 37-46
5 CONCLUSION 47-48
6 LIMITATIONS 49-51
7 SUGGESSTIONS 52-53
8 BIBLIOGRAPHY 54-55
9 ANNEXURE 56-58

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CHAPTER-1
REVIEW OF LITERATURE

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1.1MEANING OF INSURANCE
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 one’s 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.

1.2 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
segment so there is lot potential to be tapped. Before starting the iscussion on insurance industry
and related issues, we have to start with the basics of insurance. So first we understand what is
insurance? How the word ‘insurance’ is different from the word ‘assurance’? etc.

1.3 DIFFERENCE BEETWEN INSURANCE

AND ASSURANCE
Assurance is older in history and it was used to describe all types of insurances. From 1826, 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, fire, etc. The word
assurance indicated certainty. In life insurance, there is an assurance from the insurance company
to make payment under the policy either on the maturity or at earlier death. On the other hand the
word insurance was used to denote indemnity type of insurances where the insurance company
was liable to pay only in case of the loss damage the property.The insured event was bound to
happen sooner or later under assurance but the event insured against may or may not happen
under insurance. The principle of “indemnity” applies to “insurance contracts”(non-life) only.
The scope of the word, insurance is wider.

1.4 PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance.
(1) Principle of utmost good faith

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It means “maximum truth”. Both the parties should disclose all material information regarding
the subject matter of insurance.
(2) Principle of indemnity
This means that if the insured suffers a loss against which the policy has been made, he shall be
fully indemnified only to the extent of loss. In other words, the insured is not entitled to make a
profit on his loss.
(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
before the settlement of the claim may exercise the right. In other words, the insurer is entitled to
recover from a negligent third party any loss payments made to the insured. The purposes of
subrogation are to hold the negligent person responsible for the loss and prevent the insured from
collecting twice for the same loss. 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.
(5) Principle of insurable interest
The assured must have insurance interest in the life or property insured. 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, he remains in the same old position.

1.5 HISTORY OF INSURANCE

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, which were later
repaid with interest when the goods arrived safely. The concept of insurance as we know today
took shape in 1688 at a place called Lloyd’s Coffee House in London where risk bearers used to
meet to transact business. 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. Marine insurance
companies came into existence by the end of the eighteenth century. These companies were
empowered to write fire and life insurance as well as marine. The Great Fire of London in 1966
caused huge loss of property and life. With a view to providing fire insurance facilities, Dr.
Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office.

1.6 TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)
􀂾 1818 British introduced the life insurance to India with the establishment of the Oriental Life
Insurance Company in Calcutta.
􀂾 1850 Non life insurance started with Triton Insurance Company.
􀂾 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer.
􀂾 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business.
􀂾 1938 The Insurance Act was enacted.
􀂾 1956 Nationalization took place. Government took over 245 Indian and foreign insurers and
provident societies.

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􀂾 1972 Non-life business nationalized, General Insurance Corporation (GIC) came into being.
􀂾 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R. N.
Malhotra to draw a blue print for insurance sector reforms.
􀂾 1994 Malhotra committee recommended reentry of private players.
􀂾 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of
the insurance market in India.
􀂾 2000 IRDA started giving license to private insurers. ICICI Prudential, HDFC were first
private players to sell insurance Policies.
􀂾 2001 Royal Sundaram was the first non-life private player to sell an insurance policy.
􀂾 2002 Bank allowed to sell insurance plans as TPAs enter the scene, insurers start setting non-
life claims in the cashless mode.

1.7 MEANING OF LIFE INSURANCE

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.
• Whole life insurance provides for a level premium, and a cash value table included in the
policy guaranteed by the company. The primary advantages of whole life are guaranteed death
benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense
charges will not reduce the cash value shown in the policy.
• 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. A universal life policy includes a cash account. Premiums
increase the cash account.
If you want insurance protection only, and not a savings and investment product, buy a term life
insurance policy.
If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at
least 15 years. Canceling these policies after only a few years can more than double your life
insurance costs.

1.8 HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history.
Protecting against risk is what insurance is all about. Over 5000 years ago, in China, insurance
was seen as a preventative measure against piracy on the sea. Piracy, in fact, was so prevalent,
that as a way of spreading the risk, a number of ships would carry a portion of another ship's
cargo so that if one ship was captured, the entire shipment
would not be lost. In another part of the world, nearly 4,500 years ago, in the ancient land of
Babylonia, 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. In 2100 BC, the Code of Hammurabi granted
legal status to the practice. It formalized concepts of “bottomry” referring to vessel bottoms and

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“respondentia” referring to cargo. These provided the underpinning for marine insurance
contracts. Such contracts contained three elements: a loan on the vessel, cargo, or freight; an
interest rate; and a surcharge to cover the possibility of loss. In effect, ship owners were the
insured and lenders were the underwriters.

1.9 KEY FEATURES OF 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 in numerous 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.

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an
additional cost. It guarantees that coverage will stay in force and continue to grow

1.10 BENEFITS OF LIFE INSURANCE

1) Risk cover: -
Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of
the future.
2) Tax Deduction: -

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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 one life insurance schemes can be
utilized for educational needs of the insurer or his children.

1.11 ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units. It has a
Consistent profit and dividend paying record accompanied by a steady growth in its financial
resources. Through investments in the Government sector and socially- oriented sectors the
Industry has contributed immensely to the nation's development. The industry is recognized as
one of the largest financial Institutions in the
country. The ventures initiated by the industry in the areas of Mutual Fund, Housing Finance has
done exceedingly well in recent years. To protect the country's foreign exchange reserves, 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.

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 CHAPTER-2
INTRODUCTION TO THE COMPANY

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2.1 ABOUT RELIANCE LIFE INSURANCE
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance -
Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s 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 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, 1934. 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.

2.2 HISTORY
• Few men in history have made as dramatic a contribution to their country’s economic
fortunes as did the founder of Reliance, Shri. Dhirubhai H Ambani. Fewer still have left
behind a legacy that is more enduring and timeless.

•
• As with all great pioneers, there is more than one unique way of describing the true
genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot,
the leader of men, the architect of India’s capital markets, and the champion of
shareholder interest.

• But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator.
In one lifetime, he built, starting from the proverbial scratch, India’s largest private sector
enterprise.

Reliance Capital Limited announced the launch of its life insurance business on February 1,
2006. This was after obtaining the required regulatory approvals from the Registrar Of
Companies and the Insurance Regulatory and Development Authority. It was in August 2005
that the ball was set rolling when Reliance Capital Limited, the financial arm of Reliance – Anil
Dhirubhai Ambani Group (ADAG) – announced the requisition of 100% shareholding in AMP
Sanmar . Life Insurance Company Limited; and the formal transfer of shares took place in

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October 2005. The company will issue all policy contracts under the Reliance Life Insurance
Company limited name. All the existing policy contracts also stand transferred to the Reliance
Life Insurance entity with all the original contractual terms and commitments intact.

2.4 ROLE OF IT AT RELIANCE LIFE

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, with fail-over capability to their
Chennai Data Centre within the same business day in occurance if an incident or Disaster
happens.
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, Life-Asia and Internet Applications. 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.
3) Customer Care Centre: -
They will host a centralized Customer Care Centre at Dhirubhai Ambani Knowledge City at
Navi Mumbai, which cater services to internal and external queries and complications. A
customer Relationship Management Tool (CRM) and Lead Management System (LMS) are in
progress.
4) Web Portal: -
This portal will be an interface between both internal employees and their external users. Some
of the functions included in their portal are Policy Tracking Systems, Corporate News, Quality
Checking System, Under Writing Medical System, and Agent Management System etc.
5) R World: -
Reliance Mobile R-World will provide online information about their Company, Products, and
Policy Services to their existing customers, Agents/Advisors and Lead Generators.
6) SMS Alerts: -
SMS Alerts will be provided to their Sales Managers about the latest happenings like Contests
and Campaigns, Employee Alerts will include Company News and
welcome/Birthday/Anniversary message etc. Customer Alerts will include
Welcome/Birthday/Anniversary message, Policy Dispatch Details, Policy Servicing SMS like
Premium Receipt and Renewal Premium reminders etc.
7) Life and Group Asia: -
Single Life and Group Life details will be captured and managed
by Life and Group Asia. A common middleware between these
applications will enable Group Life Customers to view their individual Single Life Insurance
Plan details taken with Reliance Life Insurance and vice versa.
8) Advisor Lounge: -
It is a dedicated area for Reliance Life Insurance Agents/Advisors in all the branches across
India. This Lounge will be equipped with desktops and printers with Internet connectivity, where
their Advisors can bring in the prospects and can have discussions across the table and they can
create and print quotes. The Agents/Advisors can use this area to service their existing
customers.
9) Document Management System: -

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DMS will enable both policy issuance and contract servicing through an automated workflow,
which yields a faster Turnaround Time to both internal and external users. This application will
enable them to have a paperless office and thus mitigate the risk of losing vital records/papers.
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,
Travel and Leave Management Systems.

2.5 MISSION
The mission of Reliance Life Insurance Company Limited is to be the best in every sphere-
business results, customer care and employee focus. The aim of the company is to Think Bigger
and Think Better.

2.6 CORE VALUES

Reliance Life Insurance Company Limited has some core values which are listed as follows:
1) Result Oriented
2) Performance Driven
3) Customer Focused
4) Learning and Development Oriented
5) Employee Centric
6) Informal and Fun

2.7 FUTURE PLANS

Forty-four new branches to be opened across the country in the coming months; and a pan India
presence with 162 branches in the coming year. A state-of-the-art customer care centre will
provide continuous, responsive services to the caller and promptly address queries, collate
feedback and suggestions from the caller, who may be both prospective and existing clientele
and from channel partners in Chennai and Mumbai.
􀂾 It will be launching additional products aimed at providing
unparalleled service to its valued clientele.

2.8 HEAD – OFFICE

Reliance Life Insurance Company Limited,
The Trapezium,
39, First Floor,
Nelson Manickam Road,
Chennai – 600 029.

2.9 BRANCHES
They have so many branches and substations in the India. They have around 160 branches in the
India. And they have planned to open more branches across the country in the coming months.

Life Insurance: - Popular Products: Endowment Assurance (Participating) and Money Back
(Participating). More than 80% of the life insurance business is from these products.

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General Insurance: -Fire and Miscellaneous insurance businesses are predominant. Motor
Vehicle insurance is compulsory.

Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance
products (please visit website of GIC for details ) 2001

New products have been launched by life insurers. These include linked-products. For details,
please visit the websites of life insurers.

INFORMATION: - About the insurance industry, the following documents may be helpful:

Malhotra Committee Report (The Report of the Committee on Reforms in the Insurance Sector);

IRDA's First Annual Report - 2001

CUSTOMER PROTECTION

Insurance Industry has Ombudsmen in 12 cities. Each Ombudsman is empowered to redress

customer grievances in respect of insurance contracts on personal lines where the insured amount
is less than Rs. 20 lakhs, in accordance with the Ombudsman Scheme. Addresses can be obtained
from the offices of LIC and other insurers.

• Reliance Life Insurance is a Reliance Capital Company and is part of Reliance Group.
Reliance Capital is one of India’s 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.

• 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

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 and Asia and is headquartered in Osaka, Japan. It is ranked 81st in Global Fortune 500
firms in 2011.

Achievements
• Largest Private Life Insurance in terms of Number of Policies for two consecutive years
as of 31st March 2012

• A wide network of 1230 branches and 1,50,000 advisors

• Over 9 million policies

• RLIC continues to be amongst the foremost Life Insurance companies in India to be

certified ISO 9008:2001

• Winner of “Best Non-Urban Coverage” Award at Indian Insurance Awards 2011

• RLIC’s Boundaries for Books Campaign won the 'Silver' at the Indian Digital Media
Awards (IDMA) 2012, under Best Integrated Campaign – Social Cause and Best Use of
Social Network – Social Cause

• Amongst the top 3 Most Trusted Service Brands in the Insurance category as per the
Brand Equity‘s ‘Most Trusted Service Brands 2011’ Survey

Leadership Team

 The founder of Reliance Life Insurance Company Ltd. Shri. Dhirubhai Ambani.

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 • Anil Dhirubhai Ambani (Gujarati:), born on 4 June 1959, is an Indian business
magnate. He is the chairman of Anil Dhirubhai Ambani Group, one of the largest private
conglomerates. Anil's elder brother Mukesh Ambani, who heads as the chairman of
Reliance Industries. The Ambani family is the richest family in India and one of the
richest in the world, their wealth inherited from Dhirubhai Ambani, founder of largest
Indian conglomerate Reliance Group.

Reliance Life Insurance posts Rs 373-cr net profit during fiscal 2012

Reliance Life Insurance Company, part of Anil Ambani group, has reported first full-year net
profit at Rs 373 crore for the fiscal ending March 31, 2012.

In 2010-11, the company had net loss of Rs 129 crore, Reliance Capital informed the stock
exchanges.

Reliance Life Insurance, which sold 1.1 million policies in FY'12, garnered a total premium of
Rs 5,470 crore last fiscal.

The company's total funds under management stood at Rs 18,767 crore as on March 31, 2012.

The number of agents as on March 31, 2012 was 1.5 lakh, a decline of 20 per cent year-on year.
This was in line with the focus on productivity and performance of agents.

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However, Reliance General Insurance (RGI) has registered a loss of 342 crore during the period
under review "mainly on account of strengthening the third part motor claim reserves".

RGI's gross written premium for the FY'12 rose to Rs 1,713 crore from Rs 1,655 crore in the
previous fiscal.

Besides, the mutual fund business -- Reliance Capital Asset Management (RCAM) -- registered a
profit before tax of Rs 308 crore for the year ended March 31, 2012, an increase of five per cent
from the previous fiscal.

However, RCAM's income from operations declined to Rs 665 crore as against Rs 733 crore.

For the full year ending March 2012, Reliance Capital reported a consolidated net profit of Rs
458 crore, a jump of 57 per cent from last year.

During the fourth quarter, Rel Cap posted a consolidated net profit of Rs 329.32 crore, as against
net loss of Rs 6.46 crore in the corresponding period of the previous fiscal.

The profit was driven by sale of stake in the life insurance business, profits in mutual funds and
life insurance businesses and robust growth in commercial finance operation.

Solutions for Individuals

Taking time out from your daily schedule to plan your future is a necessary task. You could do
with some help, but who can help you?

Reliance Life Insurance is here with Solutions for Individuals, a series of plans that will help you
make wise investments, protect your family, secure your child’s future and even chalk out a plan
for your retirement. So what are you waiting for? Invest in one of Reliance Solutions for
Individuals and pave the way for a worry-free life!

RELIANCE LIFE INSURANCE PLANS

3.1 TRADITIONAL PLAN:-
Life insurance products are designed to suit the requirements
of customers. Fundamentally the product provide for:
1. Risk cover
2. Investment
3. Health cover

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

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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 9
traditional 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:

1) 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,
this is a high-risk plan with a low premium.
􀂾 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.A.
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.
􀂾 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

3) Reliance Child Plan: -

This insurance policy is designed for people who wish to save money for a future time when
there will be a recurring need for substantial amounts of money. This 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

19
planning to go abroad. This money is payable in equal installments over the last 4 years of the
policy term.
􀂾 Features: -
I. Minimum entry age is 20 year and maximum 60 year
a) Minimum sum assured is Rs. 25,000.
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: -

Reliance Life Insurance’s 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 daughter’s
wedding, your child’s 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 company’s profits, which you will
receive at the end of
the policy period.
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
d) Minimum sum assured is Rs. 25,000 or as determined by the
minimum premium
e) Maximum sum assured is Rs. 5,00,000 (entry age below 18
years and no limit for entry age 18 and above)
f) Premium mode annual, half yearly, 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. The unique feature of this policy is that life protection continues for five years after you
have stopped the payment of premium. 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, are characteristics of the policy. This plan also participates in the profits.
Features: -
a) Entry age minimum 12 year and maximum 65 year

20
b) Minimum sum assured is Rs. 25,000
c) Minimum premium paying term is 10 year and maximum 40
year
d) Unique feature of this policy is that five year life protection
continues after you have stopped the payment of premium
e) Tax benefit is available
f) Under this policy bonus is compounded yearly
g) Loan facility is available
h) Maturity amount = Full sum assured before maturity date +
Vested bonus at the time of maturity date

6) Reliance Cash Flow Plan: -

This insurance policy is designed for those who have a recurring need for reinvestment in
business or look for short-term investment channels. The advantage of the policy is that they
need not part with a sizable amount of money at any one time, but create, through regular
premium payments, a periodic return of lump sums which become available for reinvestment at
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.
Features:-
a) Plan with profits
b) Minimum entry age is 15 year and maximum is 63 year
c) Maximum premium paying term is 34 year
d) Loan facility is not available
e) In case of death full sum assured + accrued bonuses up to
the date of death is payable immediately
f) In case of survival up to maturity date all premium paid
g) Rider accident death and critical illness
h) Mode of payment is available
i) Easy Liquidity - Get periodic cash flows at the end of the fourth year and
thereafter at the end of every three years
j) Wealth creation through bonus additions
k) On maturity, receive accumulated bonuses along with final lump sum payout
l) More value for your money by way of High Sum Assured Rebate

7) Reliance Credit Guardian Plan: -

This insurance policy is designed for those who not only safeguards individuals but also families
and businesses from the financial hardship that could arise from unfortunate and unexpected
death.
Features: -
a) Loan protection against home, home improvement, two
wheelers and four wheelers

21
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: -

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.
Features: -
a) Loan protection against home, home improvement, two wheelers and four wheelers
b) In case of death remaining loan amount paid immediately
c) In case of survival no benefit is available
d) Premium payment option for 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

MAX NEW YORK LIFE INSURANCE PLANS

When Mr. Mehta decided to get life insurance to protect himself and his family he had to be sure
he was choosing the right policy. He had to buy a life insurance policy that caters to his needs, as
well as his son’s education needs and his daughter's marriage expenses. He was clear about that.
These decisions could not be taken lightly anymore. When he was faced with his own mortality
it gave him the push he needed to save wisely and save for the future. His life insurance
company helped him derive a formula that best suited his requirements and the requirements he
has for his children. The various policies he could choose from are listed below:

Term Insurance

This type of policy is a contract between the insured and the life insurance company to pay the
persons s/he has given entitlement to receive the money, in the case of his/her death, after a
certain period of time. The policies can be taken for 5, 10, 15, 20 or 30 years.

Endowment

In an endowment policy, periodic premiums are received by the insured person and a lump sum
is received either on the death of the insured or once the policy period expires.

Money Back

This policy offers the payment of partial survival benefits (money back), as is determined in the
insurance contract, while the insured is still alive. In case the insured dies during the period of
the policy, the beneficiary gets the full sum insured without the deduction of the money back
amount given so far.
22
Group Life Insurance

This is when a group of people have been named under a single Life insurance policy. It is
popular for an employer or a company to add employees under the same policy. Each member of
the group has a certificate as legal evidence of insurance.

Unit Linked Insurance

ULIPs (Unit Linked Insurance Plan) offer the insured the double benefit of protection from risk
and investment opportunities. ULIPs are linked to the market where the insured’s money is
invested to help earn additional monetary benefits.

Money back plan

Max Life Insurance Company Ltd (formerly:Max New York
Life Insurance Company Ltd.) is a joint venture between Max India Ltd., one of India’s multi-
business corporations and M S Group Japan, a Fortune 100 company. Incorporated in 2012, Max
New York Life started commercial operation in 2001 and today is one of India’s leading private
life insurance companies. The company offers individual and group life insurance products and
is present across the country through a wide distribution network of multi channel distribution.

Life PayTM Money Back

UIN 104N022V01

Max Life Life PayTM Money Back is a uniquely designed plan that caters to your present as well
as future needs. It offers regular financial assistance so that you can meet your expenses
conveniently and secures the balance for your long-term saving needs. With Max Life's Life
PayTM Money Back plan, you can always protect your family from financial hardships and fulfill
all your dreams without making any compromises.

 Benefits:
o Guaranteed financial protection
o Money back at regular intervals
o Additional protection through riders
o Bonus declared every year after the 3rd policy year

23
Key Features

Bonus Options:

From third policy year onwards, you may be eligible for bonus and these will be paid out,
based on your choice of bonus options:

o Cash Bonus, where you can take the bonus in cash

o Premium Offset, where you can use the bonus to pay a part of your premium
 Paid Up Additions, where you can use the bonus to permanently increase
the Sum Assured.
 However, bonuses are not guaranteed and will be declared by the Company
from time to time.

Death Benefit:

Death after age 10 : Sum assured plus sum assured of paid up additions (without
deduction of any money back installments, if alreay paid) Death before age 10 : Refund
of premium with interest subject to a maximum of SA

Living Benefits:
End of policy year 16 year plan 20 year plan 24 year plan

4th 10% 10% 10%

8th 20% 15% 10%

12th 30% 20% 15%

16th 50% 25% 15%

20th - 40% 20%

24th - - 40%

Non-forfeitureOptions:

In case you are unable to pay your premiums, your policy will lapse and we will utilise
the cash value to buy you insurance coverage in one of the following ways:

o Reduced Paid-Up: A reduced paid up insurance is the amount of paid-up

insurance, which can be purchased by utilising the Surrender Value which is
lower than the Sum Assured. This reduced paid-up insurance will acquire cash
value. Such paid up policy is not entitled to any bonus.

24
 o Extended Term Insurance: The Surrender Value will be used as a single
premium to buy Term Insurance equal to the current Sum Assured of this Policy
for a term the Surrender Value can purchase. Such ETI is not eligible for bonus or
cash value. The maximum term for this ETI cannot exceed the remaining term of
this Policy. Should the Surrender Value be sufficient to buy a single premium
Term Insurance for a term longer than the remaining term of this Policy then such
excess amount will be paid in cash to the Policy Holder?

Tax Benefit:

You may be entitled to certain tax benefits on your premiums and benefits. Please note all
the tax benefits are subject to tax laws prevailing at the time of payment of Premium or
receipt of benefits by you.

Rider Options:

Additional protection is given with 6 rider options available to attach to your policy.

Benefits:

o Guaranteed financial protection

o Money back at regular intervals
o Additional protection through riders
o Bonus declared every year after the 3rd policy year

Key Features

Bonus Options:

From third policy year onwards, you may be eligible for bonus and these will be paid out,
based on your choice of bonus options:

o Cash Bonus, where you can take the bonus in cash

o Premium Offset, where you can use the bonus to pay a part of your premium
o Paid Up Additions, where you can use the bonus to permanently increase the Sum
Assured.

However, bonuses are not guaranteed and will be declared by the Company from time to
time.

Death Benefit:

Death after age 10 : Sum assured plus sum assured of paid up additions (without
deduction of any money back installments, if alreay paid) Death before age 10 : Refund
of premium with interest subject to a maximum of SA

25
Living Benefits:
End of policy year 16 year plan 20 year plan 24 year plan

4th 10% 10% 10%

8th 20% 15% 10%

12th 30% 20% 15%

16th 50% 25% 15%

20th - 40% 20%

24th - - 40%

Non-forfeitureOptions:

In case you are unable to pay your premiums, your policy will lapse and we will utilise
the cash value to buy you insurance coverage in one of the following ways:

o Reduced Paid-Up: A reduced paid up insurance is the amount of paid-up

insurance, which can be purchased by utilising the Surrender Value which is
lower than the Sum Assured. This reduced paid-up insurance will acquire cash
value. Such paid up policy is not entitled to any bonus.
o Extended Term Insurance: The Surrender Value will be used as a single
premium to buy Term Insurance equal to the current Sum Assured of this Policy
for a term the Surrender Value can purchase. Such ETI is not eligible for bonus or
cash value. The maximum term for this ETI cannot exceed the remaining term of
this Policy. Should the Surrender Value be sufficient to buy a single premium
Term Insurance for a term longer than the remaining term of this Policy then such
excess amount will be paid in cash to the Policy Holder?

Tax Benefit:

You may be entitled to certain tax benefits on your premiums and benefits. Please note all
the tax benefits are subject to tax laws prevailing at the time of payment of Premium or
receipt of benefits by you.

Rider Options:

Additional protection is given with 6 rider options available to attach to your policy.

26
How this plan works?

 Example:

A healthy 35-year-old male buys Max Life Life PayTM Money Back Plan for Sum

Assured of Rs. 4 Lakh with an annual premium of Rs. 28,168 for 20 years.

Sum Assured along with accrued bonus

Guaranteed Living benefit Rs. 4,40,000

Guaranteed and non-guaranteed low

Rs. 6,17,438
rate @ 6 % p.a.

Guaranteed and non-guaranteed high

Rs. 7,86,575
rate @ 10 % p.a.

Kindly note: The above stated is only an illustration and does not in any way create any
rights and / or obligations. The actual experience on the contract may be different from
illustrated. The non-guaranteed low and high rates mentioned above relate to assumed
investment returns at different rates and may vary depending upon market conditions.
The premium mentioned is exclusive of service tax charges

3 Series 1
Series 2
2
Series 3
1

0
Category 1 Category 2 Category 3 Category 4

27
Premium

Policy term 16/20/24 years

Premium Payment Mode Annual, Semi Annual, Quarterly, and Monthly

Minimum Sum Assured Rs. 1 Lakh

Maximum Sum Assured No Limit, subject to underwriting

Riders
 A Rider is an attachment to a policy that modifies its conditions by expanding or
restricting benefits or excluding certain conditions from coverage. Max Life Life PayTM
Money Back Plan offers the riders below to customize your plan as per your needs:

Max Life Dread Disease Rider : (UIN: 104C010V02)

Benefit Additional benefit against dread diseases

Entry age 20 - 50 years (depending upon term)

Expiry age 60 years

Minimum 10 years
Tenors available
Maximum 40 years

Minimum face amount Rs. 1 Lakh

Lower of base face amount or

Maximum face amount
Rs. 10 Lakh

28
CHAPTER-3
RESEARCH METHODOLOGY

29
4.1 QUESTIONNAIRE
It is most common instrument whether administered in person by phone or online questionnaires
are very flexible. The form of each question is also important. Closed end question include all
the possible answers and subjects matters choices among them. I have used open-end questions
so that customers can write answer in their own words. I have also used closed-end questions,
which provideanswers that are easier to interpret and tabulate. I have taken care in the wording
and ordering of questions. I have used simple, direct, unbiased wording questions, which are
arranged in a logical order. I have asked personal questions at last so that respondent does not
become defensive.
􀂾 Questionnaire of the customer
I have made questionnaire consisting seventeen questions to
get customer’s view about life insurance. I have asked personal questions at last so that they do
not become defensive. I have tried to know their performance i.e. whether they want to invest,
where they want to invest, up to what amount and since when.

4.2 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 gathered secondary data and primary data and collected nformation
from the combination of these two data.
􀂾 Secondary data: -
Secondary data consist of information that already exists somewhere, having been collected for
another purpose. I have gathered secondary data from website of different operators, different
magazines, newspapers and libraries.
􀂾 Primary data: -
I have taken great care while collecting primary data to answer that it is relevant, accurate,
current and unbiased. I have taken a sample of 50 people. I have visited them personally to get
data.
􀂾 Sample size: -
I have taken sample size of 50 respondents. Because the population is too large so it is difficult
to survey.

30
OBJECTIVES OF STUDY
1. To get some good market exposure by dealing with the prospects
2. To improve our ability to sell a financial product like life insurance.
3. To know the perception of the consumer about life insurance.
4. To get a deep knowledge of the financial product like insurance.
5. To get some information about the market share of Reliance Life
6. Insurance as compared to the giants like LIC and to know the standing of the company in
the market.
7. To Compare Each And Every Prospect Of Different Insurance Plans.
8. To Analysis The Insurance Plans Which One Is Better For The People Of Different
Companies.
9. To Minimize The Cost
10. To Insure Someone In Better Manner

4.3 ANALYSIS OF QUESTIONNAIRE

Here I have formed a questionnaire to study why people go for life insurance. 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?
􀂾 Questions:-
There are 7 questions in the questionnaire. Out of these 7 questions, 6 questions are close ended
and one question is an open ended one.
􀂾 Target Population:-
I had conducted this survey among 50 people, and the target group was a mix of people from the
society. I asked the questions to Doctors, Professionals, Professors, Advocates, Engineers, and
general public.
􀂾 Analysis:-
I have used pie charts, and some other statistical measures to analyze the questions.

Q.1 What is your main motive behind investing in life insurance?

(a) Tax Benefit
(b) Savings
(c) Risk Cover
(d) Return/Yield
There could be any motive of people behind investing in a life insurance policy. The main
purpose of life insurance is the Risk cover of one’s life. But some people consider different
advantages of a life insurance policy. Some people consider Tax benefit as the main advantage of
life insurance. Some believe that life insurance is an investment so they tend to invest in life
insurance. While some people believe that it is a compulsory saving. Now let’s see what all
31
people say .Here we can see that majority of the people tend to invest in life insurance for the
risk coverage. The next preferred option is Tax Saving. 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. Return comes last.
But this is the general conclusion of 50 people. If we take a larger sample, we can get a different
result. As the private players have launched ULIPs, 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. According to a life insurance expert
(Vinod Thakkar ), life insurance is for protection first then for Savings and Tax benefits all those
things.

Q.2 Rank the above motives according to your preference

MOTIVE OF INVESTMENT
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, which is the main theme of life insurance followed by Tax
benefit. The third position is of saving and fourth is Return. This shows that still people consider
other financial tools more viable for return and life insurance is for Tax benefit and risk cover.

Q.3 How do you decide about investing in life insurance?

(a) On my own
(b) family decision
(c) Employer decides
(d) as per the guidance of agent
This is a very crucial question as most of the people are not much familiar about different life
insurance plans offered by different life insurance companies so people take help of the life
insurance agent and as he guides understanding the needs of the individual, people would invest.
Here one hazardous factor is the moral hazard. People tend to invest in life insurance plans to
maintain relations though they are not in need of life insurance. Also sometimes it depends upon
the convincing power of the agent. Here we can see that majority people (58%) decides on their
about investing in life insurance. 28% persons decides as per the guidance of the agent. There is
no contribution of employers in the decision of one’s investment in life insurance. 14% people
invest in life insurance as per the family decision.

Q.4. Which life insurance policy would you prefer to buy?

(a) Term Assurance
(b) Whole Life
(c) Endowment
(d) Money back Plan
(e) Unit Linked
This is another crucial question as there are number of products offered by life insurance
companies. The products range from pure Term Assurance Plans to Unit Linked Insurance Plans,
which are relatively new entrant in the market. We have already explained all these policies
ahead. Now let’s find out what people have to say:

32
 INSURANCE PLANS

Term Assurance 9
Whole Life 9
Endowment 7
Combined 19
ULIPs 6

As it is evident from the chart and the table 38% people prefer combination of Whole Life and
Endowment product. It gives people double advantage. The person would get some amount at
the end of the stipulated period; for instance 20 years, and after that period the risk cover
continues and the rest of the amount would be paid when the person dies.

Q.5 Would you prefer Reliance Life Insurance or Max New York Life Insurance for
buying the life insurance policy?
(a) Reliance Life Insurance
(b) Max New York
This is the most important question as it reflects the scope of the study. It is the main theme of
this questionnaire. Because the Reliance Life Insurance has more agents than the Max New York
and they have better co-operative staff and co-ordination of agents which leads to become the
first company of 2011 to sell more no of policies than any insurance company. Now let’s see
what people say:
As evident from the chart that 60% of people would prefer Reliance Life
Insurance while 40% would prefer LIC.

􀂾 Personal Details: -
1) Age
(a) 18 to 30
(b) 31 to 50
(c) 51 to 65
As evident from the chart that I have taken a sample of 50. Out of
which 10% people are aged between 18 to 30, 60% people are aged between 31 to 50, and
remaining 30% people are aged between 51 to 65.
2) Occupation
(a) Service

33
(b) Business
(c) Profession
(d) Housewife
(e) Retired

Occupation No. No of Individual

Service 5
Business 15
Profession 10
Housewife 5
Retired 15
TOTAL 50

No of Individual

Service
Business
Profession
Housewife
Retired

As the evident from the chart that out of 50 respondents 10% are of service men, 30% are of
business men, 20% are of professions, 10% are of housewives and remaining 30% are of retired.
3) Income
As the evident from the chart out of 50 respondents 20% are earning
annually between 50,000 to 1,00,000, 50% are earning between 1,00,000 to 5,00,000 and 30%
are earning more than 5,00,000.

34
 Sales

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

4) Family members
(a) 2
(b) 3
(c) 4
(d) More than 4
As the evident from the chart out of 50 respondents 10% have 2 family
members, 30% have 3 family members, 40% have 4 family members and
remaining 20% have more than 4 family members.

4.6 SWOT ANALYSIS

SWOT analysis is the analysis of the internal and external factors, which
have impact on the survival of any organization. Now let’s make SWOT
analysis for reliance Life Insurance Company Limited.
☻STRENGTHS:
1) Reliance Life Insurance Company Limited is the part of the
Reliance Capital.
2) The brand name is enough to sell the products easily.
3) Private placement of Rs. 10,000 crs worth of securities with RBI
by the government. Led to an improvement in market securities.
4) Strong liquidity from FII was the major reason for the up move.
5) Range of products
6) Reliance has a long and strong history of solvency, financial
stability.
▼WEAKNESSES:
1) Newly established company, so people seems it risky.
2) Lack of staff.

35
CHAPTER – 4
DATA ANALYSIS

36
Q.1 Do you think you and your family is secured?

Respondents Yes No
Male 74 26
Female 45 55

No
Female
Male
Yes

0 20 40 60 80

Q.2 How many dependents do you have?

X Frequency
1 10%
2 30%
3 40
More than 3 20%

Frequency
50%

Frequency
0%
1 2 3 More than 3

37
Q.3 which company you should choose to get risk cover?
 Reliance Life insurance
 Max New York life insurance
 Other

Company Percentage
Reliance Life Insurance 30%
Max New York life Insurance 19%
Other 51%

Percentage

Reliance Life Insurance

Max New York life Insurance
Other

Q.4 which attribute of the policy is your first priority?

 Sum Assured
 Duration Term
 Death Benefits
 Hospital Care
 Accidental care
 Education care

Priority factor Percentage

Sum assured 1
Death benefits 2
Duration Term 3
Hospital Care 4
Accidental Care 5
Education care 6

Percentage
Sum assured
Death benefits
Duration Term
Hospital Care
Accidental Care
38
Q.5 which kind of plan people mostly like to take?
 Money back plan
 Child plan
 Term plan
 ULIP Plan
 Endowment Plan

Insurance plans Percentage

Money back Plan 38%
Child plan 29%
Term plan 10%
ULIP plan 15%
Endowment plan 8%

Percentage

Money back Plan

Child plan
Term plan
ULIP plan
Endowment plan

39
Q.6 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 companies so people take help of the life
insurance agent and as he guides understanding the needs of the individual, people would invest.
Here one hazardous factor is the moral hazard. People tend to invest in life insurance plans to
maintain relations though they are not in need of life insurance. Also sometimes it depends upon
the convincing power of the agent.

􀂾 Personal Details: -
1) Age
(a) 18 to 30
(b) 31 to 50
(c) 51 to 65
As evident from the chart that I have taken a sample of 50. Out of
Which 10% people are aged between 18 to 30, 60% people is aged between 31 to 50, and
remaining 30% people are aged between 51 to 65.

Age Percentage
18 to 30 10%
31to 50 60%
51 to 65 30%

Age
80%
60%
40%
Percentage
20%
0%
18 - 30 31- 50 51 - 65

40
Q.7 How much premium per annual you can manage easily?
 0-5000
 5000-10000
 10000-15000
 15000-20000
 20000-25000
 More than 25000

INCOME Percentage
0-5000 2%
5000-10000 18%
10000-15000 20%
20000-25000 280%
More than 25000 32%

Percentage
0-5000
5000-10000
10000-15000
20000-25000
More than 25000

Interpretation
The income group mostly lies in 15000-25000. This income group can easily
afford the higher premiums which can help them to secure the future.

41
Q.8 how would you like to take insurance policy?
 Through insurance agent
 Through internet
 Direct from the company
 Other mode

Modes of taking policy Percentage

Through insurance agent 45%
Through internet 15%
Direct from the company 30%
Other Mode 10%

Percentage

Through insurance agent

Through internet
Direct from the company
Other Mode

Reliance Cash Flow Plan

While most insurance plans block your money for a certain period of time, Reliance Cash Flow
Plan gives you the double benefit of life insurance along with easy liquidity through lump sum
cash. It provides money periodically when you need it.

It lets you live life to the fullest today and at the same time, helps you stay protected for
tomorrow by giving you the flexibility of receiving a specified percentage of the Sum Assured at
specified intervals.

42
Key Features

 Easy Liquidity - Get periodic cash flows at the end of the fourth year and
thereafter at the end of every three years

 Wealth creation through bonus additions

 On maturity, receive accumulated bonuses along with final lump sum

payout

 More value for your money by way of High Sum Assured Rebate

 Full Sum Assured plus bonuses in case of your unfortunate death. This is
over and above the Survival Benefits already paid
Option to add two Riders - Critical Illness Rider & Accidental Death Benefit and
Total and Permanent Disablement Rider

MAX NEW YORK MONEY BACK PLAN

Max Life Life PayTM Money Back is a uniquely designed plan that caters to your
present as well as future needs. It offers regular financial assistance so that you can
meet your expenses conveniently and secures the balance for your long-term saving
needs. With Max Life's Life PayTM Money Back plan, you can always protect your
family from financial hardships and fulfill all your dreams without making any
compromises.

 Benefits:
o Guaranteed financial protection
o Money back at regular intervals
o Additional protection through riders
o Bonus declared every year after the 3rd policy year

Key Features

Bonus Options:

From third policy year onwards, you may be eligible for bonus and these
will be paid out, based on your choice of bonus options:

o Cash Bonus, where you can take the bonus in cash

o Premium Offset, where you can use the bonus to pay a part of your
premium
o Paid Up Additions, where you can use the bonus to permanently

43
 increase the Sum Assured.

However, bonuses are not guaranteed and will be declared by the Company
from time to time.

Death Benefit:

Death after age 10 : Sum assured plus sum assured of paid up additions
(without deduction of any money back installments, if already paid)

Death before age 10 : Refund of premium with interest subject to a

maximum of SA

35

30

25

20
Series 1

15 Series 2

10

0
1/5/2002 1/6/2002 1/7/2002 1/8/2002 1/9/2002

44
CHAPTER-5
CONCLSION

45
CONCLUSION

 Reliance life insurance is giving more benefits as compare to the max New York life
insurance.
 Reliance life insurance has more no. of advisors as compared to the max new York life
 Reliance has maintained a good record of giving the claim after maturity within few day
of a week.
 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

 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 player 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.
 It has become the no. one company to sell more policies than other competitors.

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CHAPTER-6
LIMITATIONS

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LIMITATIONS
There is some limitation of the human hangs which is reflected in this research. The following
are the limitation of this research study.
1) The sample size of 50 might not represent the perception of whole population, as the sample
size is too small for total population of Chandigarh city.
2) The opinion expressed by the respondents may be biased.
3) The attitude of the research might be biased.
4) One of the most influencing and most critical limitations is that I am not trained for the
research study and this is my first study. I tried hard to come at conclusion, but there is lack of
expertise.
5) Another limitation is that there is lack of time. If I give more time then studies will be more
effective. There are some limitations of this study. But in spite of their limitation I worked with
the enthusiasm. And I tried to give the best results to the research of this report.
The major limitations are as follows:-

Insurance Without Exclusions

To understand this, let’s consider what it would be like if an insurance company had no
exclusions or limitations. They would pay for every claim you filed. That part would be great.
However, the insurance company would have to make that balance up somewhere, so in return,
premiums would be higher. While this could still be extremely beneficial for those who spend a
lot of money on things that aren’t currently covered by insurance, everyone else would be paying
much more for their insurance coverage. Restrictions not only protect the insurance company,
but they protect the insured as well.

Common Exclusions and Limitations

Below is a list of several common exclusions. Check with your insurance company to find out
which exclusions they have. While some are fairly common, others are company specific.

Pre-existing conditions clauses – Your health insurance company won’t cover any health
problems you had before you obtained insurance for a specific amount of time, usually 12
months. This protects providers from paying for medical care for individuals who only obtain
insurance when they develop an illness.

Dangerous activity clauses – If you sustain injuries or cause damage while participating in a
dangerous activity, your health insurance company will not pay for the damages. If you die while
participating in extreme sports, your life insurance company will most likely not go into effect. If
you wreck your car while driving 120 mph in a 65-mph zone, your insurance will probably
decline your claim.

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Benefits that others can cover – If someone else can take responsibility for the cost of the
damage, injury or death, your insurance won’t pay for it. This can be the case even if you don’t
obtain help from the other source. Two examples of this are if there is a government program
that covers the problem or if you could receive worker’s compensation.

Maximum amounts – Currently, your provider can limit how much they will pay before they
will no longer cover a person’s expenses. Once President Obama’s health care reform goes into
effect, health care insurance companies will not be able to set lifetime maximum amounts.

Understanding the Restrictions

Before you sign your plan, be sure to read and understand the limitations. For instance, if you are
only obtaining insurance to pay for an elective surgery, you might be disappointed to find that
your provider won’t cover it.

Another reason to know the terms and conditions of your policy is that it can empower you. If
you need surgery but are worried your insurance might not cover it, you might be able to find
that it is covered by reading your policy's terms and conditions. For example, having your tonsils
removed can be considered an elective surgery; however, if your tonsils are causing other
medical problems, a tonsillectomy can be an elective but necessary surgery, in which case your
insurance might cover it. It can pay to find out.

Summary
Insurance companies create limitation clauses to protect it from paying for expenses that they
deem unnecessary or unreasonable. Your provider can create its own exemptions, so it’s
important to consider these clauses when shopping for an insurance policy. By understanding the
clauses in your policy, you can save yourself money

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CHAPTER-7
SUGGESSTIONS

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 People are not aware of the life insurance. Most of them know only one company
which provides life insurance i.e. LIC. So awareness campaign should be run so that
people are aware of different life insurance companies in India.

 People should be educated about the different types of products or plans offered by
the life insurance companies. Most of them don’t know much of the different types of
plan or products.
 It was felt that most of the people took life for tax savings or just to cover up their
life, not as an investment avenue. Life Insurance companies need to advertise in
such a manner that people start investing in life insurance like the way they invest in
the stock market
 Now at the time of global turmoil insurance company had to hold on to the
policyholders trust which might lead the company to the path of success
 Insurance companies should try to adopt different strategies to market their products
or plan. Companies should not primarily focus on the agents for their business.

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CHAPTER-8
BIBLIOGRAPHY

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BIBLIOGRAPHY

 The review of literature part and history of insurance industry accessed from
the projectsparadise.com on 05/09/2012. www.projectsparadise.com.
 The company history and reliance insurance plans were accessed from
reliance life insurance website on 05/09/2012.
www.reliancelife.com
 The comparative materials were accessed from www.indiainfoline.com on
05/09/2012.
 The Max New Life Insurance plans were accessed on 05/09/2012 from
www.maxnewyorklife.com
 Broachers of Reliance Life Insurance plans were accessed for the
comparison of insurance plans.

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CHAPTER-9
ANNEXURE

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Annexure
Questionnaire

Q.1 Do you think you and your family is secured?

 Very much
 Much
 May or may not
 Less
 Very less
Q.2 How many dependents do you have?
 2
 3
 4
 More than 4
Q.3 which company you should choose to get risk cover?
 Reliance Life insurance
 Max New York life insurance
 Other
Q.4 What is your life cycle stage?
 Younger, but unmarried
 Younger, but married
 Matured having one child
 Matured having married child
 Pre-Retirement
 Retirement
Q. 5 Which attribute of the policy is your first priority?
 Sum Assured
 Term Duration
 Death Benefits
 Hospital Care
 Accidental care
 Education care
Q.6 which kind of plan people mostly like to take?
 Money back plan
 Child plan
 Term plan
 ULIP Plan
 Endowment Plan
Q.7 How much income do you have?
 0-10,000
 10,000-20,000
 20,000-30,000
 30,000-40,000

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  More than 40,000
Q.8 How much premium per annual you can manage easily?
 0-5000
 5000-10000
 10000-15000
 15000-20000
 20000-25000
 More than 25000
Q.9 How would you like to take insurance policy?
 Through insurance agent
 Through internet
 Direct from the company
 Other mode
Q.10 For whom would you like to take insurance in your family?
 Wife
 Children
 Father
 Mother
 Other family member

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