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8/8/2019 MINESH TRAINING PROJECT (2)
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DECLARATION
I MEENESH KUMAR PACHAURI student of bachelor of business administration here by
declare that the Major research project entitled ³ANALYSIS OF UNIT LINK PLANS´ is based on my original research work.
Date:
MEENESH PACHAURI
B.B.A V SEM
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CERTIFICATE
THIS IS to certify that Mr. MEENESH KUMAR PACHAURI student of prestige institute of
Management programme has completed his summer training project on³ANALYSIS OF
UNIT LINK PLANS´ from 23 august 2010 to 18 september 2010 and prepared this report
under my guidance.
Date: Prof. ASHISH
MEHRA
Faculty guide
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ACKNOWLEDGEMENT
I Express my profound sense of gratitude to my faculty guide Prof.ASHISH MEHRA
Faculty member (pimg) for his systematic guidance throughout this project work.
I am deeply identified to Mr. Devender branch head reliance life insurance.pvt ltd.
Gwalior.for having given me a chance to work in up country markets and also
For his unflinching support during my stay at the place.
I wish to express my heartful thanks to my company guide MIS URVASHI SINGH
Sales development manager Mr.Pinaki R.Das for his invaluable advise and support
During my project whenever is got bogged down by difficulties.finally it gives me
Great pleasure to express my sincere thanks to all the sales officers.Area sales
managers.Distributors and staff member in the college who extended all kinds of
Co-operation and helped me during the course of this work.
MEENESH PACHAURI
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CONTENT LIST
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HISTORY OF ORGANISATION AND OBJECTIVE
Few men in history have made as dramatic a contribution to their country¶s economicfortunes 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, the champion of shareholder interest.
But the role Dhirubhai cherished most was perhaps that of India¶s greatest wealth creator. Inone lifetime, he built, starting from the proverbial scratch, India¶s largest private sector enterprise.
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When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$300 (around ` 14,000). Over the next three and a half decades, he converted this fledgling
enterprise into a ` 60,000 crore colossus²an achievement which earned Reliance a place onthe global Fortune 500 list, the first ever Indian private company to do so.
Dhirubhai is widely regarded as the father of India¶s capital markets. In 1977, when Reliance
Textile Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks.
Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the RelianceTextile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gainin the Indian markets.
Under Dhirubhai¶s extraordinary vision and leadership, Reliance scripted one of the greatestgrowth stories in corporate history anywhere in the world, and went on to become India¶s
largest private sector enterprise.
Through out this amazing journey, Dhirubhai always kept the interests of the ordinaryshareholder uppermost in mind, in the process making millionaires out of many of the initialinvestors in the Reliance stock, and creating one of the world¶s largest shareholder families.
OBJECTIVE
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
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Achieve impeccable reputation and credentials through best business practices
CORPORATE OBJECTIVE
At Reliance Life Insurance, we strongly believe that as life is different at every stage, life insurance
must offer flexibility and choice to go with that stage. We are fully prepared and committed to guide
you on insurance products and services through our well-trained advisors, backed by competent
marketing and customer services, in the best possible way.
y It is our aim to become one of the top private life insurance companies in India and to become
a cornerstone of RLI integrated financial services business in India.
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FINANCIAL PERFORMANCE
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FINANCIAL STATEMENT
Balance sheet
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Sources of funds
Owner's fund
Equity share capital 3,270.37 1,573.53 1,453.39 1,393.21 1,393.17
Share application money - 69.25 1,682.40 60.14 -
Preference share capital - - - - -
Reserves & surplus 1,25,095.97 1,12,945.44 77,441.55 59,861.81 43,760.90
Loan funds
Secured loans 11,670.50 10,697.92 6,600.17 9,569.12 7,664.90
Unsecured loans 50,824.19 63,206.56 29,879.51 18,256.61 14,200.71
Total 1,90,861.03 1,88,492.70 1,17,057.02 89,140.89 67,019.68
Uses of funds
Fixed assets
Gross block 2,15,864.71 1,49,628.70 1,04,229.10 99,532.77 84,970.13
Less : revaluation reserve 8,804.27 11,784.75 871.26 2,651.97 4,650.19
Less : accumulated depreciation 62,604.82 49,285.64 42,345.47 35,872.31 29,253.38
Net block 1,44,455.62 88,558.31 61,012.37 61,008.49 51,066.
Capital work-in-progress 12,138.82 69,043.83 23,005.84 7,528.13 6,957.79
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Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Investments 19,255.35 20,268.18 20,516.11 16,251.34 5,846.18
Net current assets
Current assets, loans & advances 66,595.32 56,298.09 44,743.86 30,210.99 24,696.15
Less : current liabilities & provisions 51,584.08 45,675.71 32,221.16 25,858.06 21,547.00
Total net current assets 15,011.24 10,622.38 12,522.70 4,352.93 3,149.15
Miscellaneous expenses not written - - - - -
Total 1,90,861.03 1,88,492.70 1,17,057.02 89,140.89 67,019.68
Notes:
Book value of unquoted investments 15,563.83 18,927.65 12,746.75 9,438.20 5,322.60
Market value of quoted investments 8,248.22 2,930.63 53,126.09 24,454.46 780.71
Contingent liabilities 25,531.21 36,432.69 37,157.61 46,767.18 24,897.66
Number of equity sharesoutstanding(Lacs) 32703.74 15737.98 14536.49 13935.08 13935.08
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ANALYSIS OF STATEMENTS BY RATIO
(Rs crore)
Ratios
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Per share ratios
Adjusted EPS (Rs) 46.91 100.13 93.80 87.29 65.37
Adjusted cash EPS (Rs) 79.00 133.14 127.14 121.84 89.78
Reported EPS (Rs) 49.64 97.28 133.86 85.71 65.08
Reported cash EPS (Rs) 81.74 130.29 167.20 120.26 89.49
Dividend per share 7.00 13.00 13.00 11.00 10.00
Operating profit per share (Rs) 91.64 153.47 154.32 146.44 103.76
Book value (excl rev res) per share (Rs) 392.51 727.66 542.74 439.57 9.73
Book value (incl rev res) per share (Rs.) 419.43 802.54 548.73 458.61 10.24
Net operating income per share (Rs) 587.37 902.02 920.48 801.57 580.39
Free reserves per share (Rs) 378.21 704.28 520.59 416.90 301.36
Profitability ratios
Operating margin (%) 15.60 17.01 16.76 18.26 17.87
Gross profit margin (%) 10.13 13.35 13.14 13.95 13.67
Net profit margin (%) 8.35 10.65 14.45 10.64 11
Adjusted cash margin (%) 13.29 14.58 13.73 15.13 15.35
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Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Adjusted return on net worth (%) 11.95 13.76 17.28 19.85 20.17
Reported return on net worth (%) 12.64 13.36 24.66 19.49 20.08
Return on long term funds (%) 11.71 11.34 17.18 19.83 18.88
Leverage ratios
Long term debt / Equity 0.44 0.59 0.35 0.32 0.36
Total debt/equity 0.48 0.64 0.46 0.45 0.48
Owners fund as % of total source 67.25 60.77 68.38 68.76 67.37
Fixed assets turnover ratio 0.94 1.01 1.29 1.13 0.95
Liquidity ratios
Current ratio 1.29 1.23 1.39 1.17 1.15
Current ratio (inc. st loans) 1.11 1.08 1.01 0.77 0.83
Quick ratio 0.76 0.90 0.93 0.68 0.67
Inventory turnover ratio 8.29 12.92 10.57 10.65 9.60
Payout ratios
Dividend payout ratio (net profit) 14.97 14.49 9.80 13.75 17.52
Dividend payout ratio (cash profit) 9.09 10.82 7.85 9.80 12.74
Earning retention ratio 84.16 85.92 86.01 86.50 82.56
Cash earnings retention ratio 90.60 89.41 89.68 90.33 87.30
Coverage ratios
Adjusted cash flow time total debt 2.42 3.53 1.97 1.64 1.75
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Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Financial charges coverage ratio 16.08 14.58 19.95 16.06 16.84
Fin. charges cov.ratio (post tax) 14.37 12.56 21.90 13.90 14.95
Component ratios
Material cost component (% earnings) 80.00 76.98 73.86 72.32 73.86
Selling cost Component 2.14 2.18 2.41 3.27 5.85
Exports as percent of total sales 53.46 61.22 56.80 52.40 38.10
Import comp. in raw mat. consumed 95.39 95.74 93.96 94.04 95.41
Long term assets / total Assets 0.71 0.74 0.69 0.73 0.72
Bonus component in equity capital (%) 64.47 30.61 33.14 34.57 34.58
(Rs crore)
Capital structure
From
Year
To
Year
Class Of
Share
Authorized
Capital
Issued
Capital
Paid Up
Shares (Nos)
Paid Up
Face
Value
Paid Up
Capital
2009 2010
Equity
Share 5,000.00 3,270.37 3270374360 10 3,270.37
2008 2009EquityShare 2,500.00 1,573.80 1573798233 10 1,573.80
2007 2008
Equity
Share 2,500.00 1,453.65 1453648601 10 1,453.65
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From
Year
To
Year
Class Of
Share
Authorized
Capital
Issued
Capital
Paid Up
Shares (Nos)
Paid Up
Face
Value
Paid Up
Capital
2006 2007
Equity
Share 2,500.00 1,393.51 1393508041 10 1,393.51
2005 2006
Equity
Share 2,500.00 1,393.51 1393508041 10 1,393.51
2004 2005
Equity
Share 2,500.00 1,393.51 1393508041 10 1,393.51
2003 2004
Equity
Share 2,500.00 1,396.38 1396377536 10 1,396.38
2002 2003
Equity
Share 2,500.00 1,396.38 1396377536 10 1,396.38
2001 2002
Equity
Share 1,200.00 1,053.76 1053757027 10 1,053.76
2000 2001
Equity
Share 1,200.00 1,053.76 1053757027 10 1,053.76
1999 2000
Equity
Share 1,200.00 1,053.76 1053757027 10 1,053.76
1998 1999
Equity
Share 1,200.00 933.75 933749403 10 933.75
1997 1998
Equity
Share 1,200.00 933.75 933749403 10 933.75
1996 1997
Equity
Share 550.00 460.37 460369802 10 460.37
1995 1996
Equity
Share 550.00 460.37 460369802 10 460.37
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From
Year
To
Year
Class Of
Share
Authorized
Capital
Issued
Capital
Paid Up
Shares (Nos)
Paid Up
Face
Value
Paid Up
Capital
1994 1995
Equity
Share 550.00 460.37 460361894 10 460.36
1993 1994
Equity
Share 350.00 319.95 319945057 10 319.95
1992 1993
Equity
Share 350.00 245.49 245481348 10 245.48
1991 1992
Equity
Share 200.00 152.15 152140973 10 152.14
1987 1988
Equity
Share 200.00 152.15 152146493 10 152.15
1984 1985
Equity
Share 75.00 51.61 51609318 10 51.61
1983 1984
Equity
Share 50.00 36.15 36151310 10 36.15
1982 1983
Equity
Share 50.00 18.59 18594569 10 18.59
1981 1982
Equity
Share 19.00 16.67 16673754 10 16.67
1980 1981
Equity
Share 18.00 12.06 12062291 10 12.06
1979 1980
Equity
Share 18.00 7.54 7538932 10 7.54
1977 1979
Equity
Share 8.00 5.95 5951100 10 5.95
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From
Year
To
Year
Class Of
Share
Authorized
Capital
Issued
Capital
Paid Up
Shares (Nos)
Paid Up
Face
Value
Paid Up
Capital
1975 1977
Equity
Share 8.00 5.95 5951100 10 5.95
1973 1974
Equity
Share 3.00 - 1100 10 -
RECRUITMENT IN INSURANCE SECTOR 4.0
In India, the concept of insurance was never a given a serious thought, as compared to other
countries. People still are under insured; life insurance premia to Gross Domestic Product
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(GDP) ratio is a mere 1.4% as compared to a healthier rate of 8% amongst other developing
countries. The reason being lack of awareness and opportunities combined with poor state of
services provided.
Presently in India, the insurance sector is nationalized; Life Insurance Corporation of India(LIC) and General Insurance Company (GIC) render services along with its 4 subsidiaries.
While LIC provides life insurance, GIC is concerned with non life insurance like - motor,
marine, fire, health and personal accident insurance. LIC employs people in various
departments - publicity and public relation department, development department, personnel
department, accounts department, actuarial department, secretarial department, legal
department, investment department, inspection department, mortgages department, vigilance
department, foreign department, corporate planning department, building department etc.
Of late, parliament's nod for the Insurance Regulatory and Development Authority (IRDA)
bill has changed the whole scenario. With the passage of the bill, entry of private Indian as
well as foreign companies, along with existing players, in the insurance sector will add
variety and quality to the present insurance services. The other positive impact would be on
creation of new employment opportunities. Till now employment in the insurance sector was
considered akin to any government job, but now with private participation, it will assume
significant importance and probably become an exciting career option.
Apart from people directly working in the insurance companies, there are other categories of
people related to the insurance sector. These include the following.
1. INSURANCE AGENTS: An insurance agent is a person who takes up agency from the insurance
company to sell their policy on a commission basis. He acts as an intermediary between the
insurance company and the policyholder. But before doing so, he has to undergo training and get a
certificate of proficiency from the insurance company.
Mostly insurance policies are bought through agents. Agents help individuals and
companies in selecting the right policy for their needs. They plan for the financial security
of individuals, families and businesses and advise them about insurance protection. They
also help the policyholders at the time of settlement of the claim. The job of agents is quite
challenging as selling a product like insurance policy is not easy. For being successful,
agents should be outgoing and social. They should have a knack of convincing people.
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The Corporation does recruitment of agents after a written test and an interview followed
by a training period of 3 years. Graduates in the age group of 21 to 35 years are preferred.
2. INSURANCE SURVEYORS: Insurance surveyors are qualified professionals deputed for the
assessment of losses, according to their qualification and experience. They play an important role
as they serve a link between the insurer and the insured. Their job is to assess the actual loss and
avoid false claims filed by the insured and on the other hand help the insured that has suffered a
genuine loss by indemnification of the loss. They act as investigators, assessors for determining the
loss and liability to be reported to the insurance company. The work is not always delighting as it
often involves a lot of hard work and traveling at awkward times.
Surveyors are not employees of the insurance companies. They are independent
professionals who are hired by the insurance companies. To hold a license of a surveyor,
one must possess any one of the following qualifications.
o Fellowship or Associate ship of the Institute of Insurance Surveyors and Adjustors
(IISA), Mumbai.
o A Degree or Diploma in Architecture of a Recognized University or Institute.
o Fellowship or Associate ship of the Institute of Chartered accountants or Cost and
Works Accountants.
o A Degree or Diploma of a Recognized Institute of Engineering.
O A Degree or Diploma in Naval Architecture.
INSURE LIVES, ENSURE SUCCESS
An insurance agent's ultimate mission is to provide consistent quality and satisfaction to
customers and a profitable return to the company.
The insurance industry today is undergoing dramatic changes due to the development of new
innovations that are strengthening existing customer relationships as well as seeking new
relationships.
Privatization has opened the barriers that once segmented the industry and prevented new
companies from entering the market ² offering new products or opening new lines of
business. Such movements have increasingly demanded better technology tools to acquire
new customers, retain existing customers, improve customer services, reduce operating
expenses and manage information« particularly at the point of sale.
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With the liberalization of the Indian insurance sector that threw open doors to many insurance
companies to set up their bases in India, the imminent challenge is the management of a huge
number of insurance agents and policyholders. Stringent processes such as interviews,
selection criteria, recruitment of insurance agents, training and certification processes are
posing new challenges, especially considering the complexity of Indian topography and
population density.
RECRUITMENT
Recruitment is the process of finding and attracting capable applicants for employment.
The process begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of candidates from which new employees are selected.
Under the regulation of Insurance Agents Regulatory Act 2000, any person desirous of
obtaining an agent's license shall have to pass the pre-recruitment examination in life or
general insurance business conducted by an examination body duly recognized by the
Insurance Regulatory and Development Authority (IRDA).
PURPOSE AND IMPORTANCE OF RECRUITMENT:
y Increase the pool of job candidates at minimum cost.
y Meet the organizations legal and social obligations regarding the composition of its
workforce.
y Determine the present and future requirements of the organization in conjunction with its
personnel planning and job-analysis activities.
y Evaluate the effectiveness of various recruiting techniques and sources for all types of job
applicants.
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RECRUITMENT PROCESS
SCREENED BY SALES MANAGER
INTERVIEW WITH BRANCH MANAGER
FORMS & LEGAL FORMALITIES
SOURCING OF CANDIDATES
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RECRUITMENT PROCESS FOR ADVISORS
The insurance industry today is undergoing dramatic changes due to the development of new
innovations that are strengthening existing customer relationships as well as seeking new
relationships.
Privatization has opened the barriers that once segmented the industry and prevented new
companies from entering the market ² offering new products or opening new lines of
business. Such movements have increasingly demanded better technology tools to acquire
new customers, retain existing customers, improve customer services, reduce operating
expenses and manage information« particularly at the point of sale.
With the liberalization of the Indian insurance sector that threw open doors to many insurance
companies to set up their bases in India, the imminent challenge is the management of a huge
number of insurance agents and policyholders.
Stringent processes such as interviews, selection criteria, recruitment of insurance agents,
training and certification processes are posing new challenges, especially considering the
complexity of Indian topography and population density.
EXAM CONDUCTED BY AS PER IRDA
GUIDELINES
CODING OF ADVISOR
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QUALIFICATION OF THE APPLICANT
The applicant must possess the minimum qualification of pre-university or equivalent
examination conducted by any recognized board or institute, where the applicant resides in a
place with a population of 5,000 or more as per the last census, and pass in tenth standard or
equivalent examination from any recognized board or institution if the applicant resides in
any other place.
An applicant applying for a license to act as an insurance agent will have to complete training
from an IRDA-approved institution with at least 100 hours of practical training in life or
general insurance business, as the case may be, which may be spread over three to five
weeks. For renewal of his license, the agent will have to undergo training for just 25 hours.
COMPOSITE AGENTS' TRAINING
Applicants seeking license to act as a composite agent shall have to undergo training in an
approved institution, with at least 150 hours' practical training in life and general insurance
business, which may be spread over seven to eight weeks.
TRAINING OF PROFESSIONALS
Professionals like associate or fellows of Insurance Institute of India (III) or Institute of
Chartered Accountants of India (ICAI) or Institute of Costs andWorks Accountants (ICWA)
or Institute of Company Secretaries of India (ICSI), MBA from a recognized university or thecandidates possessing professional qualification in marketing from a government-recognized
university or institute shall have to complete just 50 hours of training.
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Every person aspiring to take up agency as a career will have to undergo on-the-job practical
training with the designated company where s/he will work under the supervision of a sales
functionary.
The trainees will be taught the subtle art of creating the need, awareness and importance of insurance in the mind of the customer, understanding the requirements of the clients, and
proposing a couple of alternative solution for satisfying the wants of the clients.
Most people have their first contact with an insurance company through an insurance sales
agent or broker. These professionals help individuals, families, and businesses select
insurance policies that provide the best protection for their lives, health, and property.
Insurance agents have to work exclusively for one insurance company while the brokers can
place insurance policies for their clients with an insurance company that offers the best rate
and coverage.
In either case, agents and brokers prepare reports, maintain records, seek out new clients, and,
in the event of a loss, help policyholders settle insurance claims. Increasingly, some may also
offer their clients, financial analysis or advice on the ways they can minimize risk.
Technology has greatly impacted the insurance agency, making it much more efficient and
giving the agent the ability to take on more clients. Through computers agents are now linked
directly to the insurance companies, making the task of obtaining price quotes and processing
applications and service requests, much easier and faster. IT also enables an agent to be better
informed about new products that the insurance carriers may be offering.
The four major issues for insurers in managing the agency network revolve around the
strategies for fixing the distribution network:
y Align channel strategies around customer demand and channel usage
y Manage channels against business profitability requirements and profitable revenue growth
y Integrate channels with back-office staff and processes to ensure that everything works
smoothly
y Deliver consistent value to customers via well-supported, trained and motivated people in the
channels
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ADDING VALUE
From a product manufacturer's viewpoint, there continues to be a growing need to provide
value-added services to agents. Insurance agents expect product suppliers to assist them in
building their practice beyond product promotions.
Numerous studies have shown that product suppliers and dealers who provide true value-
added services to advisors will substantially benefit from stronger relationships and increased
sales. One such strategy is to enabling cross selling of financial products like:
y Cross-selling mutual funds to insurance clients, and
y Cross-selling insurance products to investment clients.
These programmers independently train insurance agents to sell other financial products to
overcome the obstacles associated with transitioning their practice to cross-sell other products
and services to existing clients. The programmers help advisors apply a process-driven
approach to client mining that will lead to a greater success in insurance or investment
product sales.
CHANNEL PRODUCTIVITY
The reason channel productivity is the No 1 problem most companies are worried about is
that the cost is skyrocketing and not generating increased revenue. Channel decisions are now
elevated to a strategic level. The overriding concept is to become customer-centric and tofocus channels on improving the customer experience.
But it is not advisable to use all channels to serve all customers. Some customer segments
may prefer certain channels, but if these segments are not profitable, it may be prohibitively
expensive to serve them using their preferred channels. Consequently, insurance companies
need to tailor their channels to appeal to the largest number of profitable customers to
maximize earnings.
IMPROVING AGENCY EFFECTIVENESS
Insurers must begin to focus on the quality of their customer relationship management
(CRM) and sales activities, with "improving sales effectiveness" as the top priority ²
allowing the agents to spend more time with their clients and prospects (what they do best)
and less time in performing administrative duties.
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The industry has focused on product creation and largely ignored distribution and sales
strategies. Only by shifting their focus to having more interaction with policyholders can
insurance carriers expect to strengthen brand loyalty, re-establish value pricing and sell high-
margin products. This will require mobile support systems that facilitate increased face-time
with customers.
The ultimate mission is to deliver on a customer-centric corporate strategy with channels that
provide consistent quality and satisfaction to customers and a profitable return to the
company. Here, then, lies the potential for creating customer value so that it defines our brand
versus competitors.
ROLE OF SELECTION:
The role of selection in an organization¶s effectiveness is crucial for atleast, two reasons.
First, work performance depends upon individuals. The best way to improve performance is
to hire people who have the willingness to work. Arguing from the employees viewpoint,
poor or inappropriate choice can be demoralizing to the individual concerned and de-
motivating to the rest of the workforce. Effective selection, therefore, assumes greater
relevance.
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Second, cost incurred in recruiting and hiring personnel speaks volumes about the role of
selection.
F OR EG. To prove how expensive recruitment has become. Pepsi had gone on a crash recruitment
drive. Six people from the company took over the entire Oberoi Business Center in Mumbai for six
days, 3000 applicants in response to the advertisement issued earlier were scanned: applicants were
asked to respond by fax within 100 hours: finally, the short listed persons were flown in an and
interviewed. Quite an expensive affair by any standard.
RECRUITMENTRecruitment is a linking function ± joining together those with job to fill and those seeking for jobs. It
is a joining process in that it tries to bring together job seekers and employer with a view to
encourages the former to apply for a job with the latter.
The basis purpose of recruitment is to develop a group of potentially qualified people. To this end the
organization must communicate the position in such a way that job seekers respond. To be cost
effective, the recruitment process should attract qualified applicants and provide enough information
for unqualified persons to self-select themselves out.
Relationship with other activities
This figure illustrates the relationship between job analysis, human resource planning, and the
selection process.
Human resource planning : Determines the specific number of jobs that are to be filled.
Nature and requirement of specific jobs Number of specific job to be filled
Job analysis Personnel planning
Recruitment
Pool of qualified applicants
Inducement
y Compensation
y Career
Constraints
y
Poor imagey Unattractive job
y Government
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RECRUITMENT PROCESS IN RLIC
Joining Kit Joining Tracker
Day of Joining
Base Data Form
C V Short listing
Call For Interview
First Interview
Second Interview
Third Interview
Rejected
Offer Mail
Selected
Head Office
Employee Data
Base
Employee Data
Base
Partial Kit With
Joining Kit
Photo Copy of
Partial Kit
Regional Office
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RECRUITMENT PROCESS IN RLICs
SELECTION OF THE APPLICANT
S CREENING
Candidate having KSA To effectively perform the job
Criteria¶s in RLIC
y Candidate should be graduate
y Work Experience 2 Years Sales(others) 1 years sales(insurance)
y Age Maximum 35
INTERVIEW
Generally 3 interviews are to be taken for the selection of a candidate. First interview is taken by a
senior HR manager.
Second interview is being taken by senior most HR manager.
Finally Third interview is being taken by HR manager. A HR manager can reject any candidate who
has been selected in first 2 interviews on the basis of educational qualification, work experience, past
criminal records and reference check. Final salary package is being decided during this interview.
There is an Interview assessment sheet .whatever the Interviewer observe about interviewee Write in
the IA S
. The IAS Provides Following Entitlements:
y Name of the candidates
y Position Considered for
y Location
y Source/Reference
y Date
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Interview Assessment
y Technical Strengths
y Behavioral Strengths
y Area Of Improvement
y Recommendation
y
Compensation Solution Suggested
OFF ER CLO S ING
Closing is done by a HR manager .In this HR Person mainly focus on salary negotiation.
Offer closing is based on the persons Qualification, Total no. of work experience, Last CTC earned
Last company brand. When the salary negotiated is accepted by the candidate then offer mail is
released.
OFF ERMAIL
An offer mail is being released to all the selected candidate .In this offer mail all the details regarding
joining are present. Generally an offer mail is floated before two days of joining.
The offer mail entitles the following details:
y Date of joining
y Day of joining
y Designation Of The candidates
y Package per annum
y Venue
Along with this following document is asked to bring at the time of joining:
y Resignation acceptance which should be signed and stamped by immediate boss
y Last Company appointment letter
y Last drawn Salary slip (if the candidates was an agent then he is required to bring IRDAlicense ,commission statement ,Bank Statement , or form 16A
y Pan Card If applied then Acknowledgement for the same.
y Identity prove: Driving license/ ration card/voter ID card/Passport
y 10 Photographs with blue background.
y Qualification certificates and mark sheet
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y NOC of the previous company.
y Person should be aware of his blood group.
All the documents are mandatory to bring
PROCESS OF JOINING
Final Joining date is the date decided by the HR person .Jonnie has to fill two forms on the day of
joining. One form is online and one is Joining kit.
BA S E DATA F ORM
It is an on line form present on the official website of Reliance Life Insurance (www.rclhrssg.com).
This form contain all the personal details of the employee which is recorded in the employee data
base .After completion of base data form a BD number is assign to each employee. This BD number is being written on the Joining kit of employee.
VALIDATION
: Base data form is used as a reference during validation of an employee joining kit.Without
validation a joining kit cannot be dispatched to HO.
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BA S E DATA F ORM
Following information is to be filled in this form:
y Name
y Gender
y Fathers name
y DOB, Place of Birth
y Blood Group, Height,Weight
y Identification Mark
y Present & Permanent Address(Period of staying)
y Contact Number
y PAN
y E mail ID
y Place of postingSubmitted to Regional HR & in UP- Uttaranchal Region
CONTENT JOINING KIT BOOKLET
y
Joining reporty Personal Information Form
y Information Released form
y Data Reference Check Form
y Salary Account Declaration
y Medical Insurance data
y I Card Form
y Requisition Form For E Mail
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y Business Card Requisition
y Hardware Requisition Form
y Data Card Requisition Form
y PF/EPS Declaration/ Nomination Form
y PF Transfer Form
y
Gratuity Nomination Formy Superannuation Nomination Form
y Term Insurance Nomination Form
y CTC Allocation Plan
y Investment Declaration Form
y Data Ownership Undertaking
y IT security Policy Declaration
y Code Of Ethics Undertaking
y Specimen Signature Form
JOINING KIT EVALUATION
While evaluating the joining kit it is required that joiner must submit Xerox of all the document that
were asked in the offer mail.
Signature of the joiner is mandatory in the company appointment letter.
It is also to be check that joining kit is been properly filled without any errors.
PROCE SS OF KIT DI S PATCHING
Before dispatching the joining kit to Mumbai head office following things are provided:
y Compensation sheet.(CTC Comparables)
y Reference check for E3 and above
y BDF validation(validation of the salary , designation, grade, function, reporting authority,SAP code)
Preparing of Partial kit
y Personal Information
y Interview Assessment sheet
y Curricular Vitae of the candidate
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y Resignation of previous company
y Appointment Letter of RLIC
y Background verification form
y Salary Account Declaration
y Medical Hospitalization insurance form
All these are further processed for Xerox And then original of F ollowing:
y Requisition Form For E Mail
y Business Card Requisition
y Hardware Requisition Form
Are kept regional office for record
WELFARE ACTIVITIES
In its continuous efforts to positively impact the community it operates within RelianceInfrastructure Ltd. has formulated policies for social development that based on the followingguiding principles:
y Adopt an approach that aims at achieving a greater balance between socialdevelopment and economic development.
y Adopt new measures to accelerate and ensure the satisfaction of the basic needs of all people.
y Work towards elimination of all barriers to the social inclusion of disadvantagedgroups- such as the poor or the disabled.
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y Give unfailing attention to children for in their hands lies the future of the country. Itis for their sake that health, education and environment are given priority in our
programme and investments.
Reliance Infrastructure Ltd. has partnered with various social and environmentalorganizations to address the issue of sustainable development and social upliftment. The
major partners in this area are International Institute for Sustainable Future (IISF), Lion'sClub, Rotary Club, Maharashtra Energy Development Association (MEDA) and various local NGOs.
The Company in discharge of its responsibility as a corporate citizen actively contributes to
community welfare measures and takes up several social initiatives every year. RelianceInfrastructure Ltd. has been closely working with institutions and social organizations andsupporting their programmes for social development, adult literacy, adoption of village, tree
plantation schemes etc. Some of the outstanding contributions of Reliance InfrastructureLtd. discharging its social role:
y In the year 2002 the floodwater entered the homes of all those who lived at groundlevel in Dahanu and our Dahanu plant had to be shut down. Enormous damage was
caused due to this disaster. The total damage in this region was about Rs. 25 crores. Inspite of this Reliance Infrastructure Ltd. went to help the citizens of Dahanu withclean drinking water and bags of grain were distributed to those who lived in theaffected areas.
y The Company has constructed a 6- storey, 100 bed hospital in Mumbai viz. BSESMG Hospital. The building is spread on a plot of area of 40,000 sq. ft. This fullyequipped hospital will cater to the needs of the Company's consumers. Apart fromgeneral medical services, speciality services like C T Scan, Stress Test, Intensive CareUnit, etc. will also be made available to patients. Chief Minister of Maharashtra, ShriVilasrao Desmukh at the Andheri Sports Complex, inaugurated the hospital on May01, 2002.
y In January 2001, immediately in the aftermath of the earthquake that struck parts of Gujarat, Reliance Infrastructure Ltd. rushed teams of its executives, engineers andskilled workforce to the quake affected areas and speedily restored electricity supply.The efforts put in by our team were lauded by the Chairman and senior officials of Gujarat State Electricity Board. In addition, Reliance Infrastructure Ltd. organized a3-day drive for collection of relief materials in Mumbai, which were immediatelydispatched to the affected areas.
y Reliance Infrastructure Ltd. also took up a turnkey contract on no profit basis for theconstruction of more than six hundred houses in Dudhai of Bhuj district, Gujarat inassociation with a social welfare organization. The township was completed in arecord period of 100 days and dedicated to the residents of the village by the Hon'ble
Prime Minister. Reliance Infrastructure Ltd. with contributions from its employeesand matching contribution from the Company constructed a community center whichalso was inaugurated by the Hon'ble Prime Minister. From these contributions,Reliance Infrastructure Ltd. also completed construction of a 30 room secondaryschool in the same township in Dudhai.
y When the super cyclone devastated parts of Orissa, the Company deputed a team of engineers with support staff for restoration of electricity in the affected areas. Thetimely assistance rendered by our team was effective and widely commended.
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y The Company has constructed the Junior College of Science building at Dahanu, three primary school-cum-community halls in the neighbouring villages of Dahanu and
distributed educational and teaching materials to students of several primary schoolsin Dahanu. The Company has also introduced a Dahanu Reliance Infrastructure Ltd.
Merit Scholarships for Engineering and Medical students of Dahanu Taluka inassociation with a social welfare agency of Dahanu. The Company also confers
annually the Best Teacher Awards to teachers of Dahanu identified for their outstanding contribution.
y As a part of the 'Adopt a Village" Programme, the Company, in association withForest Department of the Government of Maharashtra, has adopted K ainad village for its strategy of developing rural areas. Under the programme, Reliance InfrastructureLtd. assisted in constructing smokeless 'chullas' (stoves) and toilet blocks for tribalfamilies and installed photovoltaic streetlights in the village. During monsoon, theCompany supplied chlorine in plastic bottles for purification of drinking water to over 5,000 tribal community members at Dahanu. When several villages on the banks of Surya and Vaitarna rivers in Palghar Taluka where the Company's Dahanu Power Station is situated were flooded, Reliance Infrastructure Ltd. promptly responded to
the calamity and assisted over 800 families with utensils and other essential items.The Company's fire tenders played a major role in dewatering and cleaning theaffected villages.
y The Company constructed and handed over an Audiometry room to a school for thedeaf and dumb children of Dahanu. Reliance Infrastructure Ltd. constructed acommunity hall for Dahanu Municipality. When nearly 10 adults and children of Asangaon near the Company's Power Station at Dahanu were struck by food
poisoning, the Company rushed in medicines and an ambulance to the village. Thistimely help has saved the lives of the affected people. The Company participates inthe Pulse Polio Programme by providing transportation facilities to Primary HealthCentres and also to Cottage Hospital in Dahanu. Reliance Infrastructure Ltd.organized an eye camp at Dahanu for about 500 people including children. Spectacles
and medicines were provided free of cost and cataract operations were performed for the needy.
y The Company has consistently been over the years contributing to charity and welfareactivities and generously made donations to various agencies/trusts for
y New hospital complex at Girgaum, Mumbai
y Provision of air conditioners for a Leprosy Education Trust
y Providing help to poor and destitute children
y Construction of library, school room, purchase of books
y Sponsoring education and maintenance of children working as child labour
y Rendering assistance to backward areas in Maharashtra
y Conducting medical camps in rural areas
y Purchase of ambulances including cardiac care ambulances
y Betterment of socially and economically weaker sections
y Hepatitis-B Virus campaign
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y Treating cancer patients
y Computer literacy among poor masses
y AIDS awareness programme
The Company in its resolve to meet its social obligations works closely with local authorities
and social welfare agencies to promote community development, by undertaking variouswelfare programmes.
PRODUCTION AND OPERATION
PRODUCT PORTFOLIO 3.0
In India, the concept of insurance was never a given a serious thought, as compared to other
countries. People still are under insured, life insurance premia to Gross Domestic Product
(GDP) ratio is a mere 1.4% as compared to a healthier rate of 8% amongst other developing
countries. The reason being lack of awareness and opportunities combined with poor state of
services provided.
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VARIOUS PRODUCTS OF RELIANCE LIFE
There are two categories of Insurance policies
1. Life Insurance
2. General Insurance.
RLI deals with life insurance policies. For different customers there are different
products. As a single shoe can¶t fix into all consumers, similarly a single policy can¶t
satisfy all kinds of consumers.
Here we are dealing with only policies, which deals with individuals only.
y Reliance Endowment Plan
y Reliance Special Endowment Plan
y Reliance Cash Flow Plan
y Reliance Child Plan
y Reliance Market Return Plan
I. 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.
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Reliance Endowment Plan is an endowment plan, where you decide how much you would
like to set as your sum assured based on your current financial position and your expected
future expenses. You also get to choose how long you would like your policy to operate.
Then all you need to do is pay your single premium or regular premium for the policy term.
You may choose to pay your regular premiums yearly, half-yearly, quarterly or monthly for
the policy term.
HOW IT WORKS?
As soon as you pay your single premium, or as long as you continue to pay your regular
premiums, your policy will participate in the profits of our company. This means that each
year, we will declare a bonus, the amount of which may vary from one year to the next. The
cash value of the bonuses, which you accumulate over the policy term, will be paid to you
along with the basic sum assured when it falls due.
ELIGIBILITY
Minimum Maximum
Entry Age 5 65
Maturity Age 18 75
Policy Term 535 (regular premium)
15 (single premium)
Sum AssuredRs 25,000
or as determined by the minimum premium
Rs 5,00,000
(entry age below 18 years)
No Limit(entry age 18 and above)
Premium
Rs 2,000 for annual
Rs 1,500 for half-yearly
Rs 750 for quarterly and
Rs 250 for monthly*
premium frequency
Rs 25,000 for single premium
No limit
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No limit
* By salary deduction only
PREMIUM REBATES ON HIGH SUM ASSURED
Sum Assured
Premium Rebate per 1,000 Sum
Assured
Rs 1,00,000 - Rs 2,49,000 Re 1
Rs 2,50,000 - Rs 4,99,000 Rs 2
Rs 5,00,000 - Rs 9,99,000Rs 3
Rs 10,00,000 and above Rs 4
BENEFITS
On the maturity date of your policy, you will receive your full sum assured plus your accumulated bonuses till that date. In the unfortunate event of loss of life before the maturitydate, your family will receive your full sum assured plus your accumulated bonuses till thatdate.
Additional Benefits
Yes, for a marginal additional premium payment, you can opt to have the Accidental Death &
Total and Permanent Disablement Benefit, the Critical Condition Benefit and/or Term Life
Insurance Benefit.
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These riders may be attached to your policy at the beginning or at any policy anniversary
during the term of your policy, subject to under-writing conditions prevailing at that time.
Please note that these riders are not available if you choose our single premium plan.
Loan Facility
If you need to fund any unexpected requirements, we may grant you a policy loan of up to
90% of the surrender value of the policy, based on the terms and conditions at that time.This
facility is available on your regular premium plan once your policy acquires a paid-up value.
This facility is available immediately, in case of the single premium plan. Interest will be
charged on any outstanding loan at a rate of interest set by us, from time to time.
Tax Benefits
There is the usual exemption from tax, for premiums paid, as per the IT Act. The money you
have invested earns interest and comes to you in the form of terminal benefits and Bonus,
without the insecurities attached to the ups and downs of the capital markets. Further, at
Reliance Life Insurance, we offer you the best of courtesy, prompt service and a high level of
financial security.
II. 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.
The special benefit under this policy is that it ensures securing a fund for the future when it
is most needed and gives much needed financial security for the family.
The unique feature of this policy is that the risk cover continues for the full sum assured for
an extended period of 5 years even, after payment of the full sum assured at the end of the
premium paying term.
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This policy also participates in the profits. Bonus is compounded yearly (i.e. bonus declared
in the previous year earns bonus in the next year) and is payable at the end of the policy term.
HOW DOES IT WORK?
You pay premium every year. The premium paying term is always 5 years less than the
policy term. On survival at the end of the premium paying term you get sum assured. On
maturity (i.e. at the end of the policy term) accumulated compounded bonuses are paid. Your
beneficiary will get sum assured plus accumulated bonuses in case of your unfortunate death
before the premium paying term. If death happens after the premium paying term but before
the policy term, your beneficiary will get one more sum assured plus accumulated bonuses.
BENEFITS
y Survival Benefits- On survival at the end of the premium paying term you get the
sum assured.
y Maturity Benefit- The full sum assured under the policy will be paid at the end
of the premium paying term instead of waiting till the maturity of the policy, that
is, a full five years in advance. Again, at the end of the policy term, the full
bonuses will be paid.
y Rider Benefits-
i.) Accidental death & total and permanent disablement benefit rider-
Subject to certain conditions, if death of the policy holder is caused by an
accident, an additional lumpsum is payable
ii.) Critical illness rider- This benefit provides a lump sum payment in the event of a
specified serious illness like a stroke or heart attack suffered by the Life Assured.
Loan Facility
Loans can be taken against the surrender value of the policy, after three years¶ premiums
have been paid. This benefit comes to you without taking away your valuable life cover.
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Tax Benefits
There is the usual exemption from tax, for premiums paid, as per the IT Act. The money you
have invested earns interest and comes to you in the form of terminal benefits and Bonus,
without the insecurities attached to the ups and downs of the money market. Further, atReliance Life Insurance, we offer you the best of courtesy, prompt service and a high level of
financial security.
III. 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.
The special benefit under this policy is that it ensures liquidity through a periodical return of
a specified amount of money, once in every 3 years. It averts the necessity to look elsewhere
for loan facilities.
A unique feature of this policy is that the risk cover continues for the full sum assured even
though the periodical payments are being made. This policy also participates in the profits
and is eligible for bonus.
LIMITING CONDITION
The minimum amount for which a Reliance Cash Flow Plan policy can be taken is Rs.25,
000. There is also a limitation on the minimum premium paying term, which is 7 years, while
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the maximum term is 34 years. An important point to note is that since periodical payments
are available, it will not be necessary for you to raise a loan. Hence, there is no provision for
granting a loan under this policy.
BENEFITS
You receive the first payment at the end of the 4th year and subsequent payments at
intervals of 3 years. The entire vested bonus is paid along with the last installment on
the date of maturity of the policy.
The full sum assured under the policy along with accrued bonuses up to the date of
death, will be paid immediately. The installment amounts already paid will not be
deducted from the claim amount.
Accidental Benefits - Subject to certain conditions, if death of the policyholder is
caused by an accident, an additional lump sum is payable.
Critical illness benefits- This benefit provides a lump sum payment in the event of a
specified serious illness like a stroke or heart attack suffered by the Life Assured.
Tax Benefits - , there is the usual exemption from tax, under Section 80C for
premiums paid, as per the IT Act, 1961. The money you have invested earns interest
and comes to you in the form of terminal benefits and Bonus, without the insecurities
attached to the ups and downs of the money market.
All your policy benefits, which you receive, are exempt from tax under section 10(10D) of
the IT Act, 1961
Above all, at Reliance Life Insurance, we offer you the best of courtesy, prompt service and a
high level of financial security.
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IV. RELIANCE CHILD PLAN
This insurance policy is designed for people who wish to save money for a future time when
there will be a recurring need for substantial amounts of money. This is especially true when
it comes to paying large sums of money for higher education as and when your son or daughter is studying to become an Engineer, a Doctor or specialize in some other field, or is
perhaps planning to go abroad.
This money is payable in equal installments over the last 4 years of the policy term.
A unique feature of this policy is that the risk cover continues for the full sum assured
even though the periodical payments are being made. This policy also participates in the
profits for the full term of the policy
LIMITED CONDITIONS
Any healthy male or female with adequate income, who has completed the age of 20 and is
not older than 60 is eligible for this plan. The minimum amount for which a Reliance Child
Plan policy can be taken is Rs.25, 000. There is also a limitation on the minimum term, which
is 5 years, while the maximum term is 20 years.
BENEFITS
The sum for which you have taken the Reliance Child Plan policy will be paid to you
in four equal installments during the last four years of the policy. You will also get
full bonuses along with your final installment.
An amount equal to the sum for which you have taken the policy will be paid to your
family immediately. This will not be affected by any survival benefits already
released. This will also not affect the four installment amounts and bonus payable and
that will be paid as provided for, in case death claim occurs earlier.
Accidental Benefits - Subject to certain conditions, if death of the policyholder is
caused by an accident, an additional lump sum is payable.
Critical illness benefits- This benefit provides a lump sum payment in the event of a
specified serious illness like a stroke or heart attack suffered by the Life Assured.
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Tax Benefits - , there is the usual exemption from tax, under Section 80C for
premiums paid, as per the IT Act, 1961. The money you have invested earns interest
and comes to you in the form of terminal benefits and Bonus, without the insecurities
attached to the ups and downs of the money market.
V.) RELIANCE MARKET RETURN PLAN
The course of your life can change with time. But then, it is still your life.What you need is a
sound financial plan to take care of your investment needs and a sound insurance plan to
cover life risks. How about tossing a coin that gives heads on both sides! You could look for
a single plan that takes care of your investment and insurance needs.
Good returns from a sound investment and the security of life cover with one basic
investment plan, is the most cost effective and profitable financial solution. A unit-linked
insurance plan helps you invest your money in various investment funds and enjoy
investment benefits and insurance benefits at the same time.
Your money is precious to you. The worth of money depends on how you make it grow, how
you make the most of market conditions. To get the best returns you can invest in bank
deposits, bonds, shares and other investment instruments. While fixed income investment
instruments provide you with security, this income is still susceptible to fluctuations in
inflation. To maximise your returns, in the long term perspective, you cannot ignore the high
returns and buffer from inflation that the equity market offers. One has to balance the securityoffered by fixed income securities and the high returns offered by the equity markets. A
sound investment plan has to provide you with options to protect you from market risks and
the effects of inflation. Do you have the expertise to do so? Our experienced fund managers,
provide you with this expertise and the logistics to guide you through the changing world of
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the money markets and help you reap better returns in the future. With added insurance
cover, you have a coin that tosses-up head both ways- that is Reliance Market Return Fund.
HOW IT WORKS?
Reliance Market Return Fund is the unit-linked product that helps you invest in the financial
markets in a combination of investment instruments of your choice. You can enjoy the
returns from the markets without the trouble of monitoring and managing your own
investment portfolio and keeping track of the market movements. At the same time your
investment premiums provide you with insurance cover. Reliance Market Return Fund unit-
linked insurance plan provides you with a basket of fund options that balances your return
and risk exposure while providing life cover at the same time.
Reliance Market Return Fund is a unit-linked investment plan that invests your premiums in a
variety of investment instruments. Your premiums, regular or one-time, are invested in the
different types of funds after deducting charges .The amount you invest is expressed in units.
Based on the performance of the funds, the value of your units will vary. Reliance Market
Return Fund provides you with the option to combine returns from fixed income investments
and participate in the equity markets so that you can maximize the returns from your
investments. You can choose from the different fund options we offer in the way you best
desire. At the same time, in line with the premiums that you pay, you can specify a sum for
insurance and enjoy the benefits of life insurance cover. Reliance Market Return Fund is a
two-in-one insurance and investment plan that provides you returns and life cover.
AVAILABLE INVESTMENT FUNDS
Reliance Market Return Fund unit-linked insurance plan offers four tailored investment
funds.
Capital Secure Fund ± This fund offers steady returns for very little risk. Your funds are
invested 100% in bank deposits, government bonds and debt instruments that offer financial
security.
Balanced Fund ± In this fund, a major portion of your funds are invested in fixed securities
while a small percentage is invested in the equity market which is exposed to market
movements.
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Growth Fund - This fund offers a greater portion of investment in the equity market. The
greater exposure to the equity market means that returns will be higher, but with the attendant
higher level of risk.
Equity Fund ± This fund offers a totally equity based investment option. Your returns depend
entirely upon the performance of the equity market. The higher risk of this portfolio means
that expected returns will also be higher.
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The allocation of assets and the risk and return levels for each investment fund are given in
the table below:
Fund Type Time Horizon Risk LevelLevel of
Returns
Asset Allocation
Fixed Interest
Securities
Not less than
Equities
Not more than
Capital Secure Short Low Low 100% 0%
Balanced MediumLow-
MediumMedium 80% 20%
Growth LongMedium-
highMedium 60% 40%
Equity Long High High 0% 100%
UNITS
The premiums you pay are invested into the funds according to your choice. Your investment
is expressed in terms of units, the value of which varies according to the performance of the
funds. Unit prices are calculated regularly for each fund using the following formula:
Unit Price =
Total market value of assets plus current assets less current liabilities lessprovisions
Total number of units on issue
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When you pay premiums, we will allocate your units using the next following unit pr ice that
we determine.
When we pay you benef its, we will cancel units at the next available unit pr ice.
The market value of assets is arr ived at based on the information from stock exchanges,
f inancial institutions and market makers.
PR E
Sin
l¡ ¢ £ ¡ ¤
iu ¤
Minimum Rs 25¥ 000
¦ ¡
ul§ £ ¢ £ ¡ ¤
iu ¤
Minimum Instalments
Annual Rs 10 ̈ 000
Half Yearly Rs 5 ̈ 000
Quarterly Rs 2 ̈ 500
Monthly Rs 1 ̈ 000 (for salary deduction only ©
Rs 2 ̈ 500 (standing order/credit card)
Top-up
iu
Minimum Rs 2 500
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Regular Premium
You can select a regular payment mode of your choice to build up your unit account. Such
regular payments continue till the maturity date of the policy.
We will invest your premiums in the investment funds of your choice in the proportions that
you specify subject to regulatory norms. Under current regulations, you may invest up to a
maximum of 20% of your premiums into the Capital Secure Fund at the commencement of
your policy.
Single Premium
You can start your unit account with a single premium payment of Rs 25,000 or more. We
will invest your premiums in the investment funds of your choice in the proportions that you
specify subject to regulatory norms. Under current regulations , you may invest up to a
maximum of 20% of your premium into the Capital Secure Fund at the commencement of
your policy.
Top-up Premiums
When you have additional funds, you can enhance your unit account with top-up premiums
of Rs 2,500 or more. You may make top-ups on your regular or single premium policy at any
time to further build your portfolio. These top-ups do not affect your sum insured; they
simply increase your investment in the funds.
.
WITHDRAWLS
No. of partial withdrawals per year for regular/single premium options 2
Minimum period the policy should be in force for partial withdrawals 1 year
Minimum unit account balance after each withdrawal Rs 10,000
The withdrawal option provides you with the right amount of liquidity such that you can
draw from your unit account without disturbing the insurance cover you enjoy. Once the
policy is in force for at least a year, you can make partial withdrawals from your unit account.
RETURNS & BENEFITS
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When your policy matures you will receive the full value of your unit account on the matur ity
date. The value of your unit account is determined entirely by the performance of the funds
you invest in.
Var iabl R
rns
Your unit account can attract greater returns depending on your choice of investment funds
and their performance in the market.
Under current tax legislation, the earnings on your investments accumulate free of tax.
B i
R eliance Market R eturn Fund gives you f lexi bility in the choice of investments and in
the life cover that is best suited to your needs. You also have the freedom to change
your options according to your changing pr ior ities in the course of life
Death Benef its- If the life insured dies before the matur ity date, the policy holder / benef iciary
will receive the full value of the unit account or the sum insured whichever is higher.
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The advantage in this policy is that we recalculate your insurance charge each month, so as
your unit account grows in value, your insurance charge reduces. That is, you only pay
insurance charges for the decreasing sum at r isk as is shown in the graph below.
Additi nal Benef its- If you wish to en joy additional insurance benef its, You may select the
Accidental Death and Total and Permanent Disablement Benef it r ider that this policy offers,
for regular premium payment option. Accidental death and Total and Permanent Disablement
benef it doubles the life coverage in case of death or permanent total disability dueto an
accident at a very nominal additional cost. The maximum cover offered is R s 50,00,000
In case of total and permanent disability, 1/10th of the sum insured will be paid at the end of
each year for ten years. If the total and permanent disability benef it has commenced, then theaccident cover will cease.
In case of matur ity or on death of the life assured, af ter the payment of any installments of the
permanent and total disability benef it, the remaining unpaid installments, if any, will be paid
in one lump sum.
Total and permanent disability means disability caused by bodily in jury which causes
permanent inability to perform any occupation or to engage in any activities for remuneration
or prof its. This disability should last for at least 6 months beforebeing eligi ble for total and
permanent disability benef its.
Total and permanent disability also includes the loss of both arms or both legs or one arm and
one leg, or of both eyes. By loss of arms or legs we mean dismemberment by amputation of
the entire hand or foot. Loss of eyes means entire and irrecoverable loss of sight.
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Tax Benefits- Premium, net of health related benefit (eg. Critical Illness) premium paid, up
to a maximum of 20% of the sum assured will be eligible for income tax rebate under section
80C.
Provided, the premium in any of the years during the policy term does not exceed 20% of thesum assured, your death, maturity and withdrawal benefits are eligible for tax relief under
section 10 (10D).
Also remember that if the policy lapses or you terminate the policy before you have paid
premium for two years in case of a regular premium plan or two years have elapsed in case of
a single premium plan, the tax benefits availed shall be deemed to be tax payable.
UNIT ACCOUNT
The following diagram shows that your premiums and investment earnings are used to
purchase units, which are directed to your unit account. Converting your units into cash once
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again pays out any charges or benef its.
HOW SAFE IS THE INVEST ENT
1.
he investments made in the unit funds are sub ject to market risks and any other risks
whether financial or otherwise that are prevalent at any point in time.
2.
he unit price is a reflection of the financial and e uity/debt market conditions and can
increase or decrease at any time due to this.
3. Benefits payable under the policy will be made according to the tax laws and other
regulations in force at that time.
4.
here are no guarantees for any fund of any kind under this policy. The benefit payable on
maturity will be e ual to the value of your units.
5. The name of the funds in no way indicates the returns derived from them.
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COMPETITORS AND MARKET SHARE
Following is the list of all life insurance company granted permission by IRDA.
1. Bajaj Allianz Life Insurance Company Limited
2. Birla Sun Life Insurance Co. Ltd
3. HDFC Standard Life Insurance Co. Ltd
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4. ICICI Prudential Life Insurance Co. Ltd.
5. ING Vysya Life Insurance Company Ltd.
6. Life Insurance Corporation of India
7. Max New York Life Insurance Co. Ltd
8. Met Life India Insurance Company Ltd.
9. Kotak Mahindra Old Mutual Life Insurance Limited
10. SBI Life Insurance Co. Ltd
11. Tata AIG Life Insurance Company Limited
12. Reliance Life Insurance Company Limited.
13. Aviva Life Insurance Co. India Pvt. Ltd.
14. Sahara India Life Insurance Co, Ltd.
15. Shriram Life Insurance Co, Ltd. 0
16. Bharti AXA Life Insurance Company Ltd.
17. Future Generali Life Insurance Company Ltd.
18. IDBI Fortis Life Insurance Company Ltd.
19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd
20. AEGON Religare Life Insurance Company Limited.
21. DLF Pramerica Life Insurance Co. Ltd.
22. Star Union Dai-ichi Life Insurance Comp. Ltd.
LIC is the oldest player in the market . It is the market leader. However, some other companies also offer good innovative
products. All insurance companies are regulated by the IRDA and are equally reliable.
MARKET SHARE
"Reliance Life Insurance, a part of Reliance Capital of the Reliance Anil Dhirubhai Ambani
Group (ADAG), registered a record high market share of 14.51 percent in March 2010 and a
10.5 percent growth for the 2009-10 financial year."
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STRENGTH AND WEAKNESS
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SUGGESTIONS²DISCUSS WITH MANGEMENT
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INTRODUCTION TOPIC
Analysis of unit link plans
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UNIT LINK PLANS
A unit-linked insurance plan (ULIP) is a type of life insurance where the cash
value of a policy varies according to the current net asset value of the underlying
investment assets. It allows protection and flexibility in investment, which are
not present in other types of life insurance such as whole life policies. The
premium paid is used to purchase units in investment assets chosen by the
policyholder.
ULIP came into play in the 1960s and is popular in many countries in the world.
As times progressed the plans were also successfully mapped along with lifeinsurance need to retirement planning. In today's times, ULIP provides solutions
for insurance planning, financial needs, and many types of financial planning
including children¶s marriage planning.
In India investments in ULIP are covered under Section 80C of IT Act.
However, the concept of having an investment and insurance by the same
instrument was challenged by the market regulator SEBI which took up the
matter to the Supreme Court of India .The Indian government brought down
curtains on the two-month long tussle between the regulators by ruling that Unit-
linked Insurance Products (Ulips) will be governed by the Insurance Regulatoryand Development Authority (IRDA)
Key Features
ULIP distinguishes itself through the multiple benefits that it provides to theconsumer.The plan is a one-stop solution providing:
· Life protection· Investment and Savings· Flexibility- Adjustable Life Cover - Investment Options· Transparency· Options to take additional cover against- Death due to accident- Disability- Critical Illness
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- Surgeries· Liquidity
· Tax planning
Unit Linked Insurance Polices (ULIPS)
Unit linked guidelines were notified by IRDA on 21st December 2005. The main
intent of the guidelines was to ensure that they lead to greater transparency and
understanding of these products among the insured, especially since the
investment risk is borne by the policyholder. It is the endeavor of IRDA to enable
the buyer to make the most informed decision possible when planning for
financial security. We hope the following FAQs will enable a better insight to all
buyers about the character and features of Unit linked Products.
1.What is a ULIP?
ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life
insurance policy which provides a combination of risk cover and investment.
The dynamics of the capital market have a direct bearing on the performance of
the ULIPs. REMEMBER THAT IN A UNIT LINKED POLICY, THE
INVESTMENT RISK IS GENERALLY BORNE BY THE INVESTOR.
2.What is a Unit Fund?
The allocated (invested) portions of the premiums after deducting for all the
charges and premium for risk cover under all policies in a particular fund as
chosen by the policy holders are pooled together to form a Unit fund.
3.What is a Unit?
It is a component of the Fund in a Unit Linked Policy.
4.W
hat Types of Funds do ULIP Offer?
Most insurers offer a wide range of funds to suit one¶s investment objectives, risk
profile and time horizons. Different funds have different risk profiles. The
potential for returns also varies from fund to fund.
The following are some of the common types of funds available along with an
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indication of their risk characteristics.
5. Are Investment Returns Guaranteed in a ULIP?
Investment returns from ULIP may not be guaranteed.´ In unit linked
products/policies, the investment risk in investment portfolio is borne by the
policy holder´. Depending upon the performance of the unit linked fund(s)
chosen; the policy holder may achieve gains or losses on his/her investments. It
should also be noted that the past returns of a fund are not necessarily indicative
of the future performance of the fund.
6.What are the Charges, fees and deductions in a ULIP?
ULIPs offered by different insurers have varying charge structures. Broadly, the
different types of fees and charges are given below. However it may be noted
that insurers have the right to revise fees and charges over a period of time.
Premium Allocation Charge
This is a percentage of the premium appropriated towards charges before
allocating the units under the policy. This charge normally includes initial and
renewal expenses apart from commission expenses.
Mortality Charges
These are charges to provide for the cost of insurance coverage under the plan.
Mortality charges depend on number of factors such as age, amount of coverage,
state of health etc
Fund Management Fees
These are fees levied for management of the fund(s) and are deducted before
arriving at the Net Asset Value (NAV) .
Policy/ Administration Charges
These are the fees for administration of the plan and levied by cancellation of
units. This could be flat throughout the policy term or vary at a pre-determined
rate.
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Surrender Charges
A surrender charge may be deducted for premature partial or full encashment of
units wherever applicable, as mentioned in the policy conditions.
Fund Switching Charge
Generally a limited number of fund switches may be allowed each year without
charge, with subsequent switches, subject to a charge.
Service Tax Deductions
Before allotment of the units the applicable service tax is deducted from the risk
portion of the premium.Investors may note, that the portion of the premium after deducting
for all charges and premium for risk cover is utilized for purchasing units
8. How much of the premium is used to purchase units?
The full amount of premium paid is not allocated to purchase units. Insurers
allot units on the portion of the premium remaining after providing for various
charges, fees and deductions. However the quantum of premium used to purchase
units varies from product to product.
The total monetary value of the units allocated is invariably less than the amount
of premium paid because the charges are first deducted from the premium
collected and the remaining amount is used for allocating units.
9. Can one seek refund of premiums if not satisfied with the policy, after
purchasing it?
The policyholder can seek refund of premiums if he disagrees with the terms
and conditions of the policy, within 15 days of receipt of the policy document
(Free Look period). The policyholder shall be refunded the fund value
including charges levied through cancellation of units subject to deduction of
expenses towards medical examination, stamp duty and proportionate risk
premium for the period of cover.
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10.What is Net Asset Value (NAV)?
NAV is the value of each unit of the fund on a given day. The NAV of each
fund is displayed on the website of the respective insurers.
11.What is the benefit payable in the event of risk occurring during the term of
the policy?
The Sum Assured and/or value of the fund units is normally payable to the
beneficiaries in the event of risk to the life assured during the term as per the
policy conditions.
12.What is the benefit payable on the maturity of the policy?
The value of the fund units with bonuses, if any is payable on maturity of the
policy.
13. Is it possible to invest additional contribution above the regular premium?
Yes, one can invest additional contribution over and above the regular
premiums as per their choice subject to the feature being available in the
product. This facility is known as ³TOP UP´ facility.
14.Whether one can switch the investment fund after taking a ULIP policy?
Yes. ³SWITCH´ option provides for shifting the investments in a policy
from one fund to another provided the feature is available in the product.
While a specified number of switches are generally effected free of cost, a fee
is charged for switches made beyond the specified number.
15. Can a partial encashment/withdrawal be made?
Yes, Products may have the ³PartialWithdrawal´ option which facilitates
withdrawal of a portion of the investment in the policy. This is done through
cancellation of a part of units.
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16.What happens if payment of premiums is discontinued?
a) Discontinuance within three years of commencement ± If all the
premiums have not been paid for at least three consecutive years from
inception, the insurance cover shall cease immediately. Insurers may give
an opportunity for revival within the period allowed; if the policy is not
revived within that period, surrender value shall be paid at the end of
third policy anniversary or at the end of the period allowed for revival,
whichever is later.
b) Discontinuance after three years of commencement -- At the end of the
period allowed for revival, the contract shall be terminated by paying the
surrender value. The insurer may offer to continue the insurance cover, if
so opted for by the policy holder, levying appropriate charges until the
fund value is not less than one full year¶s premium.When the fund value
reaches an amount equivalent to one full year¶s premium, the contract
shall be terminated by paying the fund value.
17.What information related to investments is provided by the Insurer to
the policyholder?
The Insurers are obliged to send an annual report, covering the fund
performance during previous financial year in relation to the economic
scenario, market developments etc. which should include fund performance
analysis, investment portfolio of the fund, investment strategies and risk
control measures adopted.
In case, you need any clarification, you may address your query to the
following e-mail id:
Disclaimer:
The above material is provided for general information only and do not
constitute legal or other professional advice. This information is current at the
date of publication but may be subject to change without notice and accordingly,
may not be up to date at the time of viewing. Information specific to a product
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may be obtained from the concerned Insurer
Reliance Secure Child Plan
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS
BORNE BY THE POLICYHOLDER.
y Do you see your child becoming a trailblazer?y Will they create the ultimate symphony or give sports a new dimension?
Our children may just be the ones to end the arms race and wipe out poverty from the face of the Earth. But for them to be able to aim for the skies, YOU NEED TO ACT NOW!
Introducing Reliance Secure Child Plan - a unique life insurance cum savings plan. Startsaving from now and secure the future of your child.
Key Features ± Reliance Secure Child Plan:
Insurance cover on the life of child
Money at critical milestones in your child's career path - college education,
higher education, marriage
Your child is completely protected - we will continue to pay the premiums
even if you are not alive
Life time income to child in the event of disability
Return Shield option to protect your investment returns
Liquidity in the form of partial withdrawals
Capital guarantee available on maturity and on death of the child under
Regular Premium basic policy
Option to package with Reliance Accidental Death and Total and Permanent
Disablement Rider, Reliance Critical Conditions Rider and Reliance Term
Life Insurance Benefit Rider.
Loyalty addition of 1% of the premiums paid under basic plan and top ups
.
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Reliance Money Guarantee Plan
Unbeatable protection For your investments
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO ISBORNE BY THE POLICYHOLDER.
Yes, it¶s a trio the pace setter plan which promises Life Protection, an opportunity to gaincontrol over your investments along with protection of downside risk!
For the select few like you, the Reliance Money Guarantee Plan is Unit Linked productaddressing comprehensive need to strike that perfect balance of Protection and Savings, thatyou deserve as you grow successfully. The Reliance Money Guarantee Plan is a Regular Premium Unit Linked Policy which guarantees the entire premium (including premiums for top-ups) paid by you. This is a plan which helps you reap all the benefits of a rising marketsimultaneously protecting you from the downside risk of the market.
Key Features
Capital Guarantee: The sum of all premiums paid is guaranteed on maturity or on
death before the maturity.
Capital Guarantee is available on both the basic premiums as well as on top-up
premiums
Unique Return Shield feature to protect your returns
Choice to invest from 3 pre-packaged investment fund options
Unmatched flexibility through our µExchange Option¶ to move between the RelianceLife Insurance Unit Linked products offered, as you grow up the ladder
Liquidity in the form of partial withdrawals from top-up fund
Option to package with Accidental Death & Disability and Term Insurance riders
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BENEFITS OF UNIT LINK PLANS
The various benefits of Unit Linked Insurance Plans (ULIP) are :
1. High growth potential:
The money invested by the investor has potential for very high growth because they are
linked to the stock market. This makes the company to get good return because the company
gets commission for the purchase of the units. The investor also gets good return because the
money invested grows at a very fast pace compared to many other investments.
2. Life risk cover:
The Unit Linked Insurance Plans also give risk cover for the person who has invested in the
insurance plan. This is another of the benefits of Unit Linked Insurance Plans. This is because
when the person invests, along with the investment, the person also gets the life cover. The
insurance company takes some of the amount as payment for the life cover and this is the
benefit that the insurance company gets. The remaining amount that is paid by the investor is
used to purchase the shares from the equity market.
3.No need to track:
The investor has another benefit and this is the fact that the investor need not keep tracking
the equity market for individual shares when they invest in the unit linked insurance plan.
This is because the funds are all managed by the insurance company and the individual does
not have to look at the prices and will in turn save a lot of time.
4. Premium payment flexibility:
Another important benefit that most Unit Linked Insurance Plans have is that these plans
have a flexibility in the amount of premium that is payable to the company. This is based on
the amount that the investor pays. The minimum amount is taken for the insurance and the
rest of the amount is used to purchase the shares.
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These are the various advantages and benefits of the Unit Linked Insurance Plans. The
person who purchases these plans have to research and decide which is the best unit
linked plan that will work for them and they should also decide on their risk appetite
and then invest in these plans to get maximum benefit.
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OBJECTIVES OF THE STUDY
Project study without objective is body without soul.The objective of my study in reliance
life insurance ltd,Gwalior are listed under here:
y To analyse the plans and policies of reliance life insurance ltd.
y To make aware of an outstanding investment opportunity in a wide range of
investment fund backed by reliance life insurance india¶s leading fund manager.
y To provide valuable protection in case of the insured parent¶s unfortunate demise
y To know the satisfaction/dissatisfaction level of consumer toward the company.
y To provide the information about access to your accumulated fund before maturity.
y Find out uninsured person.
y To provide information related to plans and policies of the company.
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RESULTS AND DISCUSSION
My training in reliance life insurance pvt ltd gave me a lot in terms of knowledge and
experience in the field of insurance.My summer internship in reliance life insurance taught
me many things a few of them are:-
Understanding about how the policies are being sold.
How to talk to customers.
Techniques of convincing the people towards insurance policies.
Locating the target customer.
Knowledge about insurance sector and its governing body.
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CONCLUSIONS
The insurance industry today is undergoing dramatic changes due to the development of new
innovations that are strengthening existing customer relationships as well as seeking new
relationships.
The insurance sector was opened up for private participation four years agoand FICCI has
doing yeoman service to the development of this sector by facilitating exchange of views
between the industry, policymakers, and the regulator through the annual conference. This
has provided a forum to take stock of the developments and discuss the future course of
action. These annual conferences before and after the reforms in the sector have provided
useful inputs to the policy makers and the regulatory body and the FICCI deserves
appreciation for the professional manner in which these conferences are organized and should
be legitimately proud of the contribution made by it in the growth and development of
insurance sector.
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SUGGESTIONS
1) The procedure of becoming RELIANCE LIFE INSURANCE Insurance Advisor Is very
long so efforts to reduce number of training hours should be made.
2) Various companies are paying OR sharing the cost of getting a license, (which attracts majority
of people who wants to become advisors) therefore should give a consideration to the same.
3) Various companies are paying fixed salary when an advisor reaches its targets, which attracts the
potential advisors to opt for those companies, Therefore RELIANCE LIFE INSURANCE
should consider paying some amount as fixed salary which will considerably increase the
response.
4) Behavior towards trainees should improve in terms of amount of time spent with them as well as
clearing various aspects of project in the very beginning.
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REFERENCES
y http://www.economywatch.com/indianeconomy/indian-insurance-sector.html
y http://www.businesschambers.com/sh.cfm?sq=India%20Insurance%20Companies
y http://www.reliancelife.co.in
y http://www.reliancelife.co.in/aboutus.asp
y www.reliancecapital.co.in/
y www.reliancecapital.co.in/rcamhtml/rcam/images/ADAappointmentaschairman-
19June2005.pdf
y LIFE FIRST ±magazine for Life Insurance Firms
y www.irdaindia.org
y www.irda.gov.in/
y www.iii.org