A SUMMER TRAINING REPORT ON

“DIFFERENT TYPES OF INSURANCE POLICIES OFFERED BY

RELIANCE LIFE INSURANCE”

Submitted in partial fulfillment for the award of the degree

Master of Business Administration
Graphic Era Deemed University, Dehradun

Submitted by
Sakshi Bansal
MBA – Semester III
(Session 2021-2023)

Guided By
Mr. Dinesh Singh
BSM , RNLIC

DECLARATION

I, the undersigned solemnly declare that the report of the project work entitled
“DIFFERENT TYPES OF INSURANCE POLICIES OFFERED BY RELIANCE LIFE

INSURANCE” is based on my own work carried out during the course of my study
under the supervision of Mr. Dinesh Singh

I assert that the statements made and conclusions drawn are an outcome of my
research work. I further declare that to the best of my knowledge and belief the
report does not contain any part of any work which has been submitted for the award
of MBA degree or any other degree/diploma/certificate in this University or any other
University of India or abroad.

_________________
Sakshi Bansal
Student Id:21261078

CERTIFICATE

This is to certify that the work incorporated in the report “DIFFERENT TYPES OF
INSURANCE POLICIES OFFERED BY RELIANCE LIFE INSURANCE” is a record
of project work carried out by Sakshi Bansal under my guidance and supervision for
the part fulfillment for the award of
MBA Degree of Graphic Era Deemed University, Dehradun, India.

To the best of my knowledge and belief the Report

i) Embodies the work of the candidate him/herself,

ii) Has duly been completed,

 iii)Is up to the desired standard both in respect of contents and language for external
viva.

_________________
Mr. Dinesh Singh
Project Guide

ACKNOWLEDGEMENT

A written word often has the unfortunate tendency to degenerate genuine gratitude into
stilled formality. But this is the only way I can express my heartfelt thanks.

My special thanks to Mr. Dinesh Singh, who has given me continuous guidance and support
during this project.

I would thank my friends, family and the residents of Dehradun city who has helped a
lot for successful completion of this report.

I shall be failing in my duty if I don’t express my deep sense of gratitude to my

Faculties and classmates, who have shared their valuable time and helped me
directly or indirectly in the preparation of this report.
Place: Sakshi Bansal
Dehradun
Date : MBA – Semester III

ABSTRACT

India is a country where the average selling of life insurance policies is still lower
than many western and Asian countries; with the second largest population in world
the Indian insurance market is looking very prospective to many multinational and
Indian insurance companies for expanding their business and market share. Before
the opening of Indian market for Multinational Insurance Companies, Life Insurance
Corporation (LIC) was the only company which dealt in Life Insurance and after
opening of this sector to other private companies, all the world leaders of life
insurance have started their operation in India. With their world market experience
and network, these companies have offered many good schemes to lure all type of
Indian consumers but unfortunately failed to get the major share of market. Still the
LIC is the biggest player in the life insurance market with approx. 65% market share.
But why Indian consumers do not trust on many companies and why the major
population of India does not have any life insurance policy or what are the factors
plays major role in buying behavior of consumers towards life insurance policies.
 TABLE OF CONTENTS

Declaration by the Student

Certificate from the Supervisor / Company
Acknowledgments
Abstract
Chapter 1. Introduction to the study 1
Chapter 2. Company Profile 3 a. About the Company b.
About the Industry c. Mission, Vision, Goal and Achievements
Chapter 3. Literature Review 8 a. About The Insurance b.
Insurance in India
Chapter 4. Types of insurance offered by RLIC 12 a. Term Insurance Plan b. Endowment
Insurance Plans c. Money-Back Policy d. Pension Plan e. Child Plan f. Unit Linked Insurance Plan
Chapter 5. Findings of the study 29
Chapter 6. Recommendations 31
Chapter 7. Limitations 33
Chapter 8. Conclusions 35
References
 CHAPTER - 1
INTRODUCTION

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 INTRODUCTION

Life is full of risk and uncertainties. Since we are the social human being we have
certain responsibilities too. Indian consumers have big influence of emotions and
rationality on their buying decisions. They believe in future rather than the present
and desire to have a better and secured future, in this direction life insurance
services have its own value in terms of minimizing risk and uncertainties. Indian
economy is developing and having huge middle class societal status and salaried
persons. Their money value for current needs and future desires here the pendulum
moves to another side which generate the reasons behind holding a policy. Here the
attempt has been made in this research paper to study the buying behavior of
consumers towards life insurance services. Life insurance is one of the best known
insurance products today. People buy these products as investment tools and also
as protection for themselves and their families. All the insurance companies the
world over are looking at attracting the eye balls of customer and positioning their
solutions innovatively to cater to niche and specific markets. One of the most critical
aspects both from the view point of the customer and the insurer is getting important
and relevant leads that can be beneficial for both.

OBJECTIVE OF THE PROJECT

The main purpose of the project is to do analysis of different insurance products. The
project would also help in understanding preference of people regarding different
types of Insurance.

The main objective of the research is

i. To find out different Types Products and Policies offered by Reliance Life
Insurance.

ii. To find out the features and benefits of different Insurance Policies of
Reliance Life Insurance.

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 CHAPTER - 2
COMPANY PROFILE

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RELIANCE NIPPON LIFE INSURANCE COMPANY (RNLIC)
Reliance Life Insurance Company (RLIC) is amongst the top five private sector life
insurance companies in terms of individual WRP (weighted received premium) and
new business WRP. The company has over 9 million policy holders with a strong
distribution network of over 900 branches with over 100,000 agents as of March 31,
2014. Reliance Life offers life insurance products targeted at individuals and groups,
catering to four distinct segments: protection, children, retirement and investment
plans.
As of March 31, 2014, the Total Premium (net of re-insurance) was Rs. 4,283 crores,
whereas new business premium stood at Rs. 1,934 crores. The company achieved a
profit of Rs. 359 crores. The company sold 5.8 lakh policies during 2013-14 with total
managed funds valuing to Rs.18,328 crores, through a wide network of distribution
with 900 offices and over 100,000 advisors.
Rated amongst the Top 4 Most Trusted Service Brands by Brand Equity A C Neilsen
Most Trusted Brand Survey 2013, the company aims to emerge as a transnational
life insurer of global scale and standards.
Reliance Life Insurance is a part of Reliance Capital 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 private sector financial services and
non-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 (26% share), 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

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policies through various distribution channels and mainly uses face-to-face sales
channel for its traditional insurance products.

INDUSTRY PROFILE

The history of life insurance in India dates back to 1818 when it was conceived as a
means to provide for English Widows. Interestingly in those days a higher premium
was charged for Indian lives than the non-Indian lives as Indian lives were
considered more risky for coverage. The Bombay Mutual Life Insurance Society
started its business in 1870. It was the first company to charge same premium for
both Indian and non-Indian lives. The Oriental Assurance Company was established
in 1880. The General insurance business in India, on the other hand, can trace its
roots to the Triton (Total) Insurance Company Limited, the first general insurance
company established in the year 1850 in Calcutta by the British. Till the end of
nineteenth century insurance business was almost entirely in the hands of overseas
companies. Insurance regulation formally began in India with the passing of the Life
Insurance Companies Act of 1912 and the provident fund Act of 1912. Several frauds
during 20's and 30's sullied insurance business in India. By 1938 there were 176
insurance companies. The first comprehensive legislation was introduced with the
Insurance Act of 1938 that provided strict State Control over insurance business. The
insurance business grew at a faster pace after independence. Indian companies
strengthened their hold on this business but despite the growth that was witnessed,
insurance remained an urban phenomenon. The Government of India in 1956,
brought together over 240 private life insurers and provident societies under one
nationalized monopoly corporation and Life Insurance Corporation (LIC) was born.
Nationalization was justified on the grounds that it would create much needed funds
for rapid industrialization. This was in conformity with the Government's chosen path
of state lead planning and development. The (non-life) insurance business continued
to thrive with the private sector till 1972. Their operations were restricted to
organized trade and industry in large cities. The general insurance industry was
nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped
into four companies- National Insurance Company, New India Assurance Company,
Oriental Insurance Company and United India Insurance Company. These were
subsidiaries of the General Insurance Company (GIC).The general insurance

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business was nationalized after the promulgation of General Insurance Business
(Nationalizations) Act, 1972.

VISION

To be a Company people are proud of, trust in and grow with; providing financial
independence to every life we touch.

MISSION

Create unmatched value for everyone through dependable, effective, transparent

and profitable life insurance and pension plans.

GOAL

Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below:

• Emerge as transnational Life Insurer of global scale and standard

• Create best value for Customers, Shareholders and all Stake holders

• Achieve impeccable reputation and credentials through best business practices

ACHIEVEMENTS

Gold at CMO - Asia

Aug 2014
Won the CMO - Asia Social Media and Digital Marketing Excellence Award 2014 for
'Greatest Fan' campaign

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BCM 'Team of the Year'

Jul 2014
Reliance Life Insurance was awarded the 'BCM Team of the Year' award by BCI, UK
at the recently held BCI India Awards 2014

Silver at DMAi ECHO Awards 2014

Jun 2014
Won Silver at the DMAi ECHO Awards 2014 for the Greatest Fan campaign!

Bronze at IDMAI E4M Awards 2014

Jun 2014
Won Bronze at the IDMAI Exchange4Media Awards 2014 for the Greatest Fan
campaign!

Gold at Excellence in Radio Awards 2014

Jun 2014
Won Gold at Excellence in Radio Award for best CSR initiative category 2014 for the
Greatest Fan campaign!

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Bronze at OAA 2014

Jun 2014
Won Bronze at the Outdoor Advertising Awards 2014 for the Greatest Fan campaign!

CHAPTER - 3
LITERATURE REVIEW

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ABOUT INSURANCE
"Insurance is a contract between two parties whereby one party called insurer
undertakes in exchange for a fixed sum called premiums, to pay the other party
called insured a fixed amount of money on the happening of a certain event."
Insurance is a protection against financial loss arising on the happening of an
unexpected event. Insurance companies collect premiums to provide for this
protection. A loss is paid out of the premiums collected from the insuring public and
the Insurance Companies act as trustees to the amount collected. For Example, in a
Life Policy, by paying a premium to the Insurer, the family of the insured person
receives a fixed compensation on the death of the insured. Similarly, in a car
insurance, in the event of the car meeting with an accident, the insured receives the
compensation to the extent of damage. It is a system by which the losses suffered by
a few are spread over many, exposed to similar risks.

LOGIC OF INSURANCE
It is a system by which the losses suffered by a few are spread over many, exposed
to similar risks. Insurance is a protection against financial loss arising on the
happening of an unexpected event. Insurance companies collect premiums to
provide for this protection. A loss is paid out of the amount premiums collected from
the insuring public and the Insurance Companies act as trustees to the collected.

NEED OF INSURANCE
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. By taking life insurance a
person can have peace of mind and need not worry about the financial

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consequences in case of any untimely death. Certain Insurance contracts are also
made compulsory by legislation. For example, Motor Vehicles Act 1988, stipulates
that a person driving a vehicle in a public place should hold a valid insurance policy
covering “Act" risks. Another example of compulsory insurance pertains the
Environmental Protection Act, wherein a person using or to carrying hazardous
substances (as defined in the Act) must hold a valid public liability (Act) policy.

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INSURANCE IN INDIA
Insurance is a federal subject in India and has a history dating back to 1818. Life and
general insurance in India is still a nascent sector with huge potential for various
global players with the life insurance premiums accounting to 2.5% of the country's
GDP while general insurance premiums to 0.65% of India's GDP. The Insurance
sector in India has gone through a number of phases and changes, particularly in the
recent years when the Govt. of India in 1999 opened up the insurance sector by
allowing private companies to solicit insurance and also allowing FDI up to 26%.
Ever since, the Indian insurance sector is considered as a booming market with
every other global insurance company wanting to have a lion's share. Currently, the
largest life insurance company in India is still owned by the government.

HISTORY OF INSURANCE IN INDIA

Insurance in India has its history dating back till 1818, when Oriental Life Insurance
Company was started by Europeans in Kolkata to cater to the needs of European
community. Pre-independent era in India saw discrimination among the life of
foreigners and Indians with higher premiums being charged for the latter. It was only
in the year 1870, Bombay Mutual Life Assurance Society, the first Indian insurance
company covered Indian lives at normal rates. At the dawn of the twentieth century,
insurance companies started mushrooming up. In the year 1912, the Life Insurance
Companies Act, and the Provident Fund Act were passed to regulate the insurance
business. The Life Insurance Companies Act, 1912 made it necessary that the
premium rate tables and periodical valuations of companies should be certified by an
actuary. However, disparage still existed as discrimination between Indian and
foreign companies. The oldest existing insurance company in India is National
Insurance Company Ltd, which was founded in 1906 and is doing business even
today. The Insurance industry earlier consisted of only two state insurers: Life
Insurers i.e. Life Insurance Corporation of India (LIC) and General Insurers i.e.
General Insurance Corporation of India (GIC). GIC had four subsidiary companies.
With effect from December 2000, these subsidiaries have been de-linked from parent
company and made as independent insurance companies: Oriental Insurance
Company Limited, New India Assurance Company Limited, National Insurance
Company Limited and United India Insurance Company Limited.

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LIFE INSURANCE CORPORATION ACT, 1956

Even though the first legislation was enacted in 1938, it was only in 19 January 1956,
that life insurance in India was completely nationalized, through a Government
ordinance; the Life Insurance Corporation Act, 1956 effective from 1.9.1956 was
enacted in the same year to, inter-alia, form LIFE INSURANCE CORPORATION
after nationalization of the 245 companies into one entity. There were 245 insurance
companies of both Indian and foreign origin in 1956. Nationalization was
accomplished by the govt. acquisition of the management of the companies. The Life
Insurance Corporation of India was created on 1 September, 1956, as a result and
has grown to be the largest insurance company in India as of 2006.

GENERAL INSURANCE BUSINESS (NATIONALIZATION) ACT, 1972

The General Insurance Business (Nationalization) Act, 1972 was enacted to

nationalize the 100 odd general insurance companies and subsequently merging
them into four companies. All the companies were amalgamated into National
Insurance, New India Assurance, Oriental Insurance, and United India Insurance
which were headquartered in each of the four metropolitan cities.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT, 1999

Till 1999, there were not any private insurance companies in Indian insurance sector.
The Govt. of India then introduced the Insurance Regulatory and Development
Authority (IRDA) Act in 1999, thereby de-regulating the insurance sector and
allowing private companies into the insurance. Further, foreign investment was also
allowed and capped at 26% holding in the Indian insurance companies. In recent
years many private players entered in the Insurance sector of India. Companies with
equal strength started competing in the Indian insurance market. Currently, in India
only 2 million people (0.2 % of total population of 1 billion), are covered under Medi
claim, whereas in developed nations like USA about 75 % of the total population are
covered under some insurance scheme. With more and more private players in the
sector this scenario may change at a rapid pace

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 CHAPTER - 4
TYPES OF INSURANCE
OFFERED BY RLIC

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TERM INSURANCE PLAN

In insurance language this is a “pure risk cover” and can be described as an

insurance or risk management product in its purest and simplest form. In case of
your untimely death, your dependents will receive the risk-cover amount or the ‘sum
assured’. On the other hand, there is no survival benefits if you survive the policy
term, and you also do not get back the premiums paid.

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ENDOWMENT INSURANCE PLANS

It is a traditional investment-cum-insurance plan. In other words, it provides both life

cover (in the event of death of life insured) or maturity benefits if he/she survives the
policy term. Endowment plans are typically front-loaded. Therefore it makes sense
for you to remain in the policy for at least 12-15 years.

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MONEY-BACK POLICY
It is a variant of the endowment assurance policy-the difference is that insured get
the survival benefits intermittently over the life of the policy. The maturity benefit is
the sum assured value less the survival benefits already paid under the policy, plus
bonuses accrued, if any. In case of untimely death the nominee will receive the entire
sum assured without considering the payouts already made to insured before the
unfortunate death.

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PENSION PLAN
A pension plan can be looked as more of an investment product offered by insurers
to cater to the “golden” retirement years of an individual. Also referred to as
retirement plans, these are designed to ensure that you are financially independent
during your retirement years. Most of the pension plans also provide an optional life
assurance cover in them.

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CHILD PLAN
It basically aims at ensuring the achievement of life goals of your child. The goal can
be higher education, financial help in establishing a business or profession, or even
marriage. In a child plan, the life assured can be the parent or the child. The
beneficiary for the policy, however, is the child. As a child is a minor, the life
insurance contract is between the parent and the insurance company. In case of
early death of the parent, the premium payment is waived off by the insurance
company and the policy continues as originally planned.

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UNIT LINKED INSURANCE PLAN
ULIPs have been the darling of insurance companies, intermediaries and the insured
population alike over the last five years. The main reason for this popularity is the
twin advantage of a pure life cover (insurance component) and a range of investment
funds or options (savings component) to match your risk profile. While the pure life
cover provides the much needed financial security to your dependents in the event of
your untimely death, the savings component allows you to participate in the capital
markets and build wealth over the long-term tenure of the policy.

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 CHAPTER - 5
FINDINGS

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FINDINGS

I. Reliance Life Insurance Company offers various types of products according

the need of different segments of customers.

II. Wide varieties of products are available for both Short term as well as long
term. Some of the products offered by RLIC are:

1. Term Insurance Plan

2. Endowment Insurance Plans
3. Money-Back Policy
4. Pension Plan
5. Child Plan
6. Unit Linked Insurance Plan

III. Products offered by RLIC are not only used for insurance but they can be
used as an investment.

IV. Some benefits of the various products’ offered by RLIC are:

1. Additional benefits on products can be obtained by using different

optional riders.
2. All the products can be used to avail Tax benefits under section 80(c),
80(d), and 1010(d).
3. Products have options of getting money back in regular intervals, which
makes them more attractive and offers more satisfaction to Insured.

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 CHAPTER - 6
SUGGESTIONS AND
RECOMMENDATIO
NS

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SUGGESTIONS AND RECOMMENDATION

1. People are not aware of the life insurance. Most of them know only one
company which provides life insurance i.e. LIC. So RLIC should run
awareness campaign so that people can know more about RLIC.

2. People should be educated about the different types of products or plans

offered by RLIC. Most of them don’t know much of the different types of plan
or products.

3. 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. RLIC needs to advertise in such a
manner that people start investing in life insurance like the way they invest in
the stock market

4. Now at the time of global turmoil RLIC had to hold on to the policyholders’
trust which might lead the company to the path of success

5. RLIC 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 - 7
LIMITATIONS

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LIMITATIONS

1. Useful Financial insights are not easily available.

2. Due to time constraint sufficient research on all the investment tools is

difficult.

3. Study is based on some products offered by Reliance Life Insurance, and

does not cover all the products.

4. Study is focused on products of RLIC and does not give any information about
the products offered by other Insurance Companies.

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 CHAPTER - 8
CONCLUSIONS

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CONCLUSION

A well-functioning insurance market plays an important role in economic

development and financial stability of developing economies such as India’s. First, it
inculcates and encourages the habit of saving. Second, it provides a safety net to
rural and urban enterprise and productive individuals. The life insurance market in
India is on a growth path. In spite of this, the country lags far behind the others in
awareness about life insurance. The challenge is to spread awareness about life
insurance and it true benefits. The industry has to convince people to park their hard
earned money in long-term insurance and not just look at it as a tax saving
instrument.

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 REFERENCES

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CITATION FROM JOURNALS

 Rao C. S. (2007), “The Regulatory Challenges Ahead,” Journal of Insurance

Chronicle, pp. 7-10.

 Sabera K. (2007), “Changes in Insurance sector: A study on Public

Awareness,” Journal of Insurance Chronicle, vol. 7, no. 1, pp. 37.

 Jain A. K. (2004), Journal of Insurance Institutions of India, pp. 30-53.

CITATION FROM BOOKS

 Marketing Management (14th Edition) – February 18, 2011 by Philip Kotler

(Author), Kevin Keller (Author) ISBN: 978-0132102926

CITATION FROM WEBSITE

 History of insurance in India (2009): Insurance Regulatory and Development

Authority.
http://www.irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=Pag
eNo4&mid=2

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 http://www.reliancelife.com/milestones.aspx

 en.wikipedia.org/wiki/Reliance_Life_Insurance

 https://lifeline.reliancelife.com/wps/myportal/agent/!ut/p/c1/0wcA1NLTeQ!!/#

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