ON
ANALYSIS OF
In Partial fulfillment of the requirements for the award of
Bachelor of Business Administration SUBMITTED TO SUBMITTED BY
S.No
Content
Page No. 1. Objective of the Company
4
2. Importance of the study
5 3. Introduction of Insurance
7 4. List of Private Insurance Company
10 5. About Reliance Life Insurance
15 6. Board of directors
22 7. Definition of sales $Marketing
26 8. Marketing Strategy
28 9. Product Segmentation
33 10. Unit Linked Product
45 11. Research Methodology
71 12. Questionnaire
75 13. Data Analyses
76 14. Conclusion
92 15. Limitation
93 16. Recommendation
94 17. Bibliography
95 DECLARATION
PREFACEInsurance is one of the fastest growing sectors in
country. For year after Liberalization the insurance industry still
holds vast opportunities for Young and Experienced professionals.
On the life insurance side public sector life insurance Corporation
of India is, Of course, the largest player with a history of over
50 years. After privatization, the PSU has been making efforts to
improve efficiency and customer service. Among the private life
insurance Player Reliance life is a Key player.My study about Life
Insurance, giving special reference to RELIANCE Life Is an attempt
to get a inner look about the working of this private player in the
Country, there mode of recruiting advisor and customer satisfaction
with the company in ETAH.As the company operating in 96 cities with
over 350 branches, Etah is selected as a sample unit of study, the
will consist of studying Product basket of Reliance life with the
help of secondary data and the market survey with the help of
Questionnaires to collect primary data and there after the result
will be generalized of Universe (INDIA) to get clear picture about
the preference of Reliance life in India.ACKNOWLEGEMENT It is a
great feeling to acknowledge all those very important people
without whom this training & research project would not have
been completed. At the very outset, I take the opportunity to
express my gratitude and hearty thanks for those people who have
directly or indirectly helped me in working with Reliance LifeI
convey my sincere thanks to Mr ?? of our college for their advice,
endless encouragement & co-operation in helping me to complete
this Internship Programme.
I convey my sincere thanks and deep gratitude to respected
Senior Territory Manager, Reliance Life Insurance Company, ??I take
this opportunity to thank my project guide Mr. ?? Senior Territory
Manager (S.T.M), Reliance Life Insurance Company, for his kind
co-operation and valuable suggestions for conducting the study
successfully and enabling me to do my summer training.
Finally I extended my warm thanks to all my coordinators who
were involved with me during my Internship Training for their kind
co-operation and help.OBJECTIVE OF COMPANY In the short span since
the insurance sector was opened up, Reliance Life has literally
dictated the markets evolution. Catering to all age and income
segments, the company started out with the traditional insurance
policies that were easy to understand, the idea was to entice
customers used to LICs style of functioning.
Reliance Life began exploring new areas; it introduced modern
products, like Unit-Linked Product where return are linked to the
market performance of the underlying assets.
Reliance Life leads n virtually all parameters; size of agent
force, number of policies sold, total sum assured, premium income
and productivity of agents it has set exacting standards for its
range of products, riders offered, quality of information in
promotional material and even in the insurance awareness events
organized.
What has been in favors of Reliance Life is the range of
products in each Segment of life insurance-traditional, unit-
linked and single premium option, be they for retirement plan or
child plan. With such a comprehensive bouquet, it caters to all
financial goals of a customer.
So the objective of study is to see in that bouquet of product
and satisfaction of customers with the company through research
work in Meerut.IMPORTANCE OF THE STUDY Reliance Life has grown
exponentially over the past three years, making its mark in a
number of segments such as retirement solutions, child plan and
unit-linked plans. The success of the business thus far, has
towards achieving the companys Vision of being a leader in life
insurance business in India. Reliance Life is the leading private
sector life insurance in India.
So, the research work is important in respect of understanding
the changing Insurance sector with special reference to Reliance
Life. The study is about products of leading private insurer, their
mode of recruiting advisors and their approach- which made them
customer centric.
SCOPE OF STUDY Reliance Life insurance has increased its market
share among private life insurers to nearly 45% of 35%as of end-
July. The companys first-year premium income in the November-June
period stood at Rs. 567.6 crore, accounting for 43.67% of the Rs.
1,587 crore premiums booked by all private life insurers together.
Considering the entire life market, including Rs. 12,890 crore
booked by life insurance Corporation, Reliance Life market share
works out to around 6.13%.The life insurance market continuous to
be dominated by LIC which has about 67% share this only a marginal
dip from its 73% share in end-July. These comparisons are only for
first year or new business premium. The gap between Reliance Life
and the second-inline private insurer is vast. In fact, this hiatus
has led some analysts to wonder if the company is not a trifle too
aggressive. But others say this has more to do with the companys
customer-centric focus, its pan-India presence and superior risk
management and investment strategies. Reliance Life is not,
however, resting on its laurels. Companys customer centric approach
will be studied during the Training period and the finding of the
research work will definitely focus on the present condition &
future requirement (if any), relating to the products of
company.
Insurance is mechanism that ensures an individual thrive on
adverse consequences by compensating the individual for loss
financially. The meaning of insurance can be made from two
points:
Function meaning of insurance
Contractual meaning of insuranceFunctional Meaning:Insurance is
a co-operative device to spread the loss caused by a particular
risk over a number of people, who are exposed to it and who agree
to ensure themselves against the insurance is:
a) A co-operative devise to spread the risk
b) The system to spread the risk over a number of people who are
insured against the risk.
c) The principal to share the loss of each member of the society
on the basis of probability of loss to their risk and
d) The method to provide security against losses to the insured.
Contractual Meaning:
The insurance is a contract where by:Certain sum called premium,
is charged in consideration.
Against the said consideration a large sum is guaranteed to be
paid by the insurer who received the premium.
The payment will be made in certain definite sum that is the
loss or the policy amount whichever may be, and
The payment is made only upon a contingency.
Kinds of insurance
The Insurance can be divided from two angels: From the business
point of view.
From the risk point of view.
Business point of view:
The insurance can be classified in to categories from business
point of view
1) Life insurance
Life insurance is different from other insurance in the since
that, here, the subject matter of insurance is life of human being.
Life is the most important property of the society or an
individual. This insurance provides protection to the family at the
premature death or gives adequate amount at the old age when
earning capacities are reduced.
2) General insurance
The general insurance includes property insurance, liability
insurance and other forms of insurance. Fire and marine insurance
are strictly called property insurance; Motor, Theft, Fidelity and
Machine insurances includes the extent of liability Insurance to a
certain extant.
(A) Property Insurance
Under the property insurance property of a person insured
against certain specified risk. The risk may be fire or marine
perils, Theft of property or goods damage to property at
accident.
1) Marine Insurance
Marine insurance provides protection against loss or marine
perils. These perils cause damage, destruction of disappearance of
the ship and cargo and nonpayment of freight.
2) Miscellaneous Insurance
The property good machine, furniture, automobiles, valuable
articles etc. can be insured against the damage due to accident or
due to Theft these are different forms of insurance for each type
of said property where by not only property insurance exist but
liability insurance and personal injuries are also insured.
(B) Liability Insurance
The general insurance also include liability insurance where by
the insured is liable to pay the damage of property or compensate
the loss of personal injury or death. This insurance is seen in the
form of Fidelity insurance, Automobile insurance and Machine
insurance etc.
(C) Other form
Besides the property and liability insurance there are certain
insurances, which are include under general insurance, state
employees insurance etc. where by the Insurer guarantees to certain
amount at the certain event.
3) Social Insurance
The social insurance is to provide protection to the weaker
section of the society who is unable to pay the premium of adequate
insurance. Pension Plan, Disability Benefit, Unemployment Benefit,
Sickness insurance and industrial insurance are the various form of
social insurance with the increase of socialistic ideas, the social
Insurance is an obligatory duty of the nation. List of Private
Insurance CompaniesInsurance Industry in the year 2000-2001 had 21
new entrants, (Foreign players entering the Indian insurance sector
with their Indian partners)Life Insurance List:
Life InsurersS.NoNAME OF THE COMPANYNAME OF PRINCIPAL
OFFICERNAME OF APPOINTED ACTUARY
TELEPHONE NO./FAX No./E-MAIL & WEB ADDRESS
1.Bajaj Allianz Life Insurance Company Limited .GE Plaza,
Airport Road , YerawadaPune 411 006
Mr.Kamesh GoyalMr. Anil Kumar SinghTel : 020-4026666 Fax :
020-4026789.
2.Birla Sun Life Insurance Co. Ltd 6th Floor, Vaman Centre,
Makhwana Road,off Andheri-Kurla Road, Andheri(E), MUMBAI-400
059.Mr. Ajay SrinivasanMr. Fabien JeudyTel : 022 40393333/66783333
Fax: 022 40961373/66783232 Email
:[email protected]
3.HDFC Standard Life Insurance Co. Ltd 2nd Floor, Trade
StarKondivita JunctionAndheri Kurla RoadAndheri EastMumbai
400059.Mr Paresh ParasnisMr. William John MartinTel :
022-67516666Fax: 022-2822 8844
4.ICICI Prudential Life Insurance Co. Ltd ICICI Prulife Towers ,
1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025.
Sri V. Vaidyanathan
Mr. Avijit ChatterjeeTel :022-56621996Fax: 022-56622031
5.ING Vysya Life Insurance Company Ltd.ING Vysya Home, 5th
Floor, #22 Mahatma gandhi Road Bangalore-560 001.Mr.Kshitij JainMs.
Hemamalini RamakrishnanTel : 080-25328000Fax: 080-25559764
6.Life Insurance Corporation of India Yogakshema, Jeeva Bima
Marg, Post Box No. 19953 MUMBAI 400 021Shri T S. VijayanMr. T
BhargavaTel 56598701;56598702Fax: 22824386E-Mail ;
[email protected]
7.Max New York Life Insurance Co. Ltd 11th Floor, DLF Square ,
Jacaranda Marg, DLF City , Phase-II, GURGAON 122 002.Shri Rajesh
SudMr.John Charles PooleTel : 0124-2561717Fax: 0124-2561764
8.Met Life India Insurance Company Ltd.Brigade Seshamahal, No.
5, Vani Vilas Road , Basavanagudi,BANGALORE-560 004.
Mr. Rajesh RelanMr. M S V S Phanesh
Tel : 080-26438638Fax: 080-26521970Toll Free No.
1-600-44-6969
9.Kotak Mahindra Old Mutual Life Insurance Limited 9th Floor,
Godrej Coliseum,Behind Everard Nagar,Sion (East),MUMBAI-400
022..
Mr. Gaurang ShahMr. Andrew Willis CartwrightTel : 022-6621
5999Fax:022-6621 5757, 6621 5858
10.SBI Life Insurance Co. Ltd Turner Morrison Building, 2nd
Floor, 16, Bank Street, Fort Mumbai-400 023.
Mr. Mahadev Nagendra RaoMr. Sanjeev Kumar PujariTel :
022-56392000Fax: 022-56621471
11.Tata AIG Life Insurance Company Limited 5th 7 6th Floor,
Peninsula Tower, Peninsula Corporate ParkGanpatrao Kadam Marg,
Lower Parel, MUMBAI 400 013.
Mr. M. SureshMr. Heerak BasuTel : 022-66516000 Fax :
022-66550711
12Reliance Life Insurance Company Limited.1st Floor, Midas,
Sahar Plaza,Andheri Kurla Road, Andheri East, Mumbai 400059.Mr.
Malay Ghosh (Officiating)
Ms. Pournima GupteTel : 022-30883434/ 30887261Fax:
022-30886587
13Aviva Life Insurance Company India LimitedAviva Tower, Sector
Road, Opposit Golf Course, DLF-Phase V, Sector-43,Gurgaon - 122
003
Mr. T. R. RamachandranMr. Chandan KhasnobisTel: 0124-270
9000/01,Fax: 0124-270 9007.
14Sahara India Life Insurance Co, Ltd. Sahara India Bhawan,
Kopoorthala Complex,Lucknow 226024
Mr. N.C. SharmaMr. K K DharniTel: 0522-2337777Fax:
0522-2378200
15Shriram Life Insurance Co, Ltd. Regd. Office : 3-6-478, 3rd
Floor, Anand Estate, Liberty Road, Himayat Nagar, Hyderabad -
500029
Mr R DuruvasanMr. Theo Bernhard SchefflerTel:
040-23434466-72Fax: 040-23434488
16Bharti AXA Life Insurance Company Ltd. 601-602 6th
Floor,Raheja TitaniumOff Western Express HighwayGoregaon (E) Mumbai
400 063
Mr. Nitin ChopraMr. G L N SarmaTel: 022 40306300/6301Fax: 022 -
40306347
17Future Generali India Life Insurance Company Limited 001,
Trade Plaza, Ground Floor, 414, Veer Sarvarkar Marg,
Prabhadevi,Mumbai 400 025.
Mr. Jayant KhoslaMr. D Sai SrinivasTel No.: 022-40976666
Fax No.: 022-40976600
18IDBI Fortis Life Insurance Company Ltd., Tradeview, Oasis
Complex, Kamala City, P.B. Marg, Lower Panel (W),Mumbai-400 013
Mr. G.V. Nageswara RaoMr. Michael J WoodTel No.:
022-24908109/10
Fax No.: 022-24941016
19Canara HSBC Oriental Bank of Commerce Life Insurance Company
Ltd. C/o. HSBC at Amsoft Systems, Unitech Trade Centre, Sector-43,
Sushant Lok-1,Opp. Park Plaza Hotel,Gurgaon-122 001.
Mr. Harpal S. KarlcutMr. Paul Beresford Tel: 0124 44215706Fax:
0124- 4201109
20AEGON Religare Life Insurance Company Limited. GYS Heights,
2nd Floor, Paranjpe B Scheme, Subhash Road, Near Garware House,Vile
Parle (E), Mumbai 400 057
MR. Rajiv JamkhedkarMr. K.S. GopalakrishnanTele No.-022-67292929
Fax No.- 022 67293333
21DLF Pramerica Life Insurance Co. Ltd.
4th Floor Tower B, Building No.-9,
DLF Cyber City, Phase-III, Gurgaon-122002.
Mr. Kapil Mehta (MD & CEO)Mr. Pradeep Kumar ThapliyalPh.
No.-0124-4697000
Fax No.-0124-4697100 / 200
22Star Union Dai-ichi Life Insurance Co. Ltd., Star House, 3rd
Floor, (West Wing), C-5,Bandra-Kurla Complex, Bandra (East), Mumbai
400 051Mr. Kamalji Sahay (MD & CEO)Mr. I SAMBASIVA RAOPhone:
022-39546211 e-mail: [email protected]
Money plan
Health planChild plan
Pension planABOUT THE COMPANY
THE COMPANY
About Reliance Life Insurance Reliance Life Insurance offers you
products that fulfill your savings and protection needs. Our aim is
to emerge as a transnational Life Insurer of global scale and
standard.
Reliance Life Insurance is an associate company of Reliance
Capital Ltd., a part of Reliance - Anil Dhirubhai Ambani Group.
Reliance Capital is one of Indias leading private sector financial
services companies, and ranks among the top 3 private sector
financial services and banking companies, in terms of net worth.
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 - Anil Dhirubhai Ambani Group also has presence in
Communications, Energy, Natural Resources, Media, Entertainment,
Healthcare and Infrastructure.
Our Founder
Few men in history have made as dramatic a contribution to their
countrys economic fortunes as did the founder of Reliance, Shri.
Dhirubhai H Ambani. Fewer still have left behind a legacy that is
more enduring and timeless.
As with all great pioneers, there is more than one unique way of
describing the true genius of Dhirubhai: The corporate visionary,
the unmatched strategist, the proud patriot, the leader of men, the
architect of Indias capital markets, the champion of shareholder
interest.
But the role Dhirubhai cherished most was perhaps that of Indias
greatest wealth creator. In one lifetime, he built, starting from
the proverbial scratch, Indias largest private sector
enterprise.
When Dhirubhai embarked on his first business venture, he had a
seed capital of barely US$ 300 (around Rs 14,000). Over the next
three and a half decades, he converted this fledgling enterprise
into a Rs 60,000 crore colossusan achievement which earned Reliance
a place on the global Fortune 500 list, the first ever Indian
private company to do so.
Dhirubhai is widely regarded as the father of Indias 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 Reliance
Textile 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 gain in the
Indian markets.
Under Dhirubhais extraordinary vision and leadership, Reliance
scripted one of the greatest growth stories in corporate history
anywhere in the world, and went on to become Indias largest private
sector enterprise.
Through out this amazing journey, Dhirubhai always kept the
interests of the ordinary shareholder uppermost in mind, in the
process making millionaires out
of many of the initial investors in the Reliance stock, and
creating one of the worlds largest shareholder families.
Vision & MissionVision Empowering everyone live its
dreams.
MissionCreate unmatched value for everyone through dependable,
effective, transparent and profitable life insurance and pension
plans.
Our 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
AWARDS & ACCOLADES
Achievements The Company has been the fastest company to reach
the 3 million policy mark RLIC closed the last financial year with
a New Business Premium of Rs 3513 Crores. For 3 successive years,
since inception, the Company has been amongst the fastest growing
Companies in the Life Insurance Industry achieving a growth rate of
28% in the last financial year against a market growth of -6%. In
the Individual Business segment, the company achieved a growth rate
of 59% in terms of WRP against the private industry growth of
1%.
Reliance Life has been one of the fastest gainers in market
share growing from 1.9% amongst private players in Mar'06 to 10.3%
as of Mar'09. This has resulted in the Company growing to becoming
the 4th largest private player in just two years starting at
position of 11.
and was the 3rd largest private insurer in terms of Policy count
in 2008-09
Reliance Life has accomplished a large distribution ramp-up in
the Industry in a short span of time by opening 1145 branches in
just over 2 year. RLIC continues to be amongst the foremost Life
Insurance companies in India to be certified ISO 9001:2000 for all
the processes.
Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007-
Certificate of Merit in the Financial Services category by Council
for Fair Business Practices (CFBP).
The Company has also won the DL Shah Quality Council of India
Commendation Award in the services category in feb 2008 for its
work on promoting 'self help channels for service' Leadership
Team
BOARD OF DIRECTORS
Gautam Doshi, DirectorGautam is the Group Managing Director of
Reliance Anil Dhirubhai Ambani Group and Director of Reliance Life
Insurance Company Limited.
In his long and illustrious career spanning 30 years, Gautam has
held key positions in various organisations such as M/s. Bansi S.
Mehta, RSM & Co. and Ambit Corporate Finance Pvt. Ltd.
Presently, as a Board member of various reputed public limited
companies, Gautam continues to power the industry with his profound
knowledge and expertise.
Gautam, a qualified Chartered Accountant, has served as the
Chairman of the Institute of Chartered Accountants of India for the
year 198283. He was also elected to the Council of the Institute of
Chartered Accountants of India for two consecutive terms spanning
over 1992 to 1998
Satya Pal Talwar,Director Satya Pal is the Director of Reliance
Life Insurance Company Limited. He holds an experience of more than
35 years in operations and policy formulation.
Through his distinguished service in the financial industry,
Satya Pal has served as the Chairman and Managing Director of
renowned organizations such as Bank of Baroda, Union Bank of India
and Oriental Bank of Commerce. His in-depth knowledge of the sector
has seen him rise quickly into pivotal positions at advisory and
board levels in Indian and as well global organizations such as
SEBI, IDBI and MasterCard International. He has also held the
coveted position of Deputy Governor of RBI from 1994 to 2001.
Satya Pal holds a degree in Law. He is a Certified Associate of
the Indian Institute of Bankers and a member of the Indian Council
of Arbitration.
Saumen Ghosh, Group PresidentSaumen is currently the Group
President of Reliance Capital Limited.
Saumen has worked in the UK for one of the leading Chartered
Accountancy firms and then moved to Australia to join a subsidiary
of the Allianz Group where he held various senior positions in the
finance and international division. In his immediate past
assignment, before joining Reliance Capital Limited, Saumen was
responsible for the overall Allianz operations in India and Middle
East.
Saumen is a qualified Chartered Accountant and is a member of
the Institute of Chartered Accountant in England & Wales and
Australia.
Malay Ghosh President Malay leads all activities at Reliance
Life Insurance Company Limited Life and his key focus is on rapid
expansion of all channels and accelerating the companys growth
trajectory.
Malay has over 24 years of work experience in the insurance
industry. He has worked for 17 years with LIC across various
functions and for 7 years with Bajaj Allianz Life Insurance where
he was last designated Head of Sales.
Malay holds a Masters degree in statistics.Maneesha Thakur,
Chief Human Resources Officer
Maneesha in her role as the Chief Human Resource Officer at
Reliance Life Insurance Company Limited has developed a performance
driven and employee centric culture. She has been at the forefront
of the organization growth by facilitating talent acquisition and
management.
Maneesha in her career span of 15 years has worked with
companies like SHCIL, ALLTEL, Transamerica, ICICI Bank and
VSNL.
In addition to an MA in English Literature, Maneesha holds a
Post Graduate Diploma in Personnel Management & Industrial
Relations from XLRI, Jamshedpur.Pournima Gupte, Appointed
Actuary
Pournima is the Appointed Actuary at Reliance Life Insurance
Company Limited where she has the overall responsibility for
statutory reporting, risk appetite, pricing, valuation,
reinsurance, etc.
Prior to joining Reliance, Pournima served at Life Insurance
Corporation of India for 20 long and rewarding years. Her stint
with LIC included a four-year deputation at the London branch, as
Manager. She then moved on to be the Chief Manager Actuarial, at
Kotak Mahindra Life Insurance Company and Associate Vice President
Actuarial at Bajaj Allianz Life Insurance Company.
Pournima is a graduate in Statistics and a Fellow of the
Actuarial Society of India (FASI).
C Mohan, Chief Technology Officer
C Mohan is the Chief Technology Officer (CTO) of Reliance Life
Insurance Company Limited and he is responsible for Information
Technology Strategy Formulation and Deployment.Mohan is an
Engineering Graduate and holds many International IT
Certifications.
Mohan has over 12+ years of IT Experience of which he spend more
than 7+ years Executive Management Experience in overseas. He
worked with Cathay Pacific Airways and Computer Sciences
Corporation in Asia Pacific Role at Singapore before he joined
Reliance Life.
In Year 2008 he has been awarded as Pioneer CIO by CIOL-Data
Quest and Bold 100 CIO by IDG-CIO Forum. He also received the Early
SOA Adopter Award from IBM.
He has recently been selected as a honoree in Global CIO 100
2009 Award Summit to be held in Colorado, USA.R Rangarajan, Chief
Investment Officer
Rangarajan is the Chief Investment Officer at Reliance Life
Insurance Company Limited. He alongwith his team, strives to give
the best possible returns on investments to shareholders and
policyholders, keeping in mind their appetite for risk. Rangarajan
draws on his in-depth knowledge of investment and experience of 25
years to ensure that the goals of the organization are metwithout
any compromise on the benefits of the investors. Prior to being a
part of Reliance Life Insurance, Rangarajan worked with AMP Sanmar
Life Insurance as Head Investments for three years. His earlier
assignment was with a large Mutual Fund organization.
Rangarajan is a qualified Chartered Accountant. S V Sunder
Krishnan, Chief Risk Officer
Sunder is the Chief Risk officer for Reliance Life Insurance and
is responsible for overseeing Risk Management, Internal Audit and
Compliance functions at Reliance Life Insurance.
Sunder came with 23 years of experience and knowledge in
Internal Audits, Compliance, Assurance Consulting and Risk
Management. He has worked for various leading organizations such as
DSP Merrill Lynch, ING Vysya, Credit Lyonnais, Standard Chartered,
Bank International Indonesia, Ernst & Young and Delloitte at
senior and middle management positions with exposure to businesses
and operations in more than 12 countries.
Sunder is a qualified FCA, CISA, and CCSA. He is also the
President of Information Systems Audit Control Association
(ISACA-USA), Mumbai Chapter for the year 2007-08 and was a member
of the Board of Advisors to Bombay Chartered Accountants Society
(BCAS) for Internal Audit studies for the year 2005-06.
Saroj K Panigrahi, Head Legal Compliance & Company
Secretary'Saroj K Panigrahi heads the Legal, Compliance and Company
Secretarial function of Reliance Life Insurance'. He is armed with
twelve years of valuable experience in the Corporate Legal,
Commercial, and Regulatory Compliance and Corporate Governance
domains.
Prior to joining Reliance, he headed the Legal & IP
department at Accentors India Outsourcing Business. During his
fulfilling tenure, he skillfully managed the Legal, Intellectual
Property, Regulatory Risk & Compliance aspects of several
Fortune 500 companies. Prior to his assignment with Accentor, Saroj
was Associate Legal Counsel & Company Secretary at ING Vysya
Life Insurance and was also associated with ICRA, an associate of
Moodys Investors Inc.
Saroj holds a degree in Law. He is also a Fellow Company
Secretary, a Chartered Secretary (UK) and a Chartered Financial
Analyst (CFA). DEFINATIONS OF MARKETING AND SALES
MARKETING
Marketing means movements of goods through distribution channel.
Through marketing consumers are made to understand the quality and
usefulness of the products. Marketing g is a comprehensive
activity, as quantum of sales depends largely upon marketing.
SALES
Sales mean supplying goods to the products. Sales take place in
the minds of the buyer after the products are made known to them
through marketing. Hence, Marketing and selling are
interrelated.
In my opinion, marketing is more important than sales because
without marketing first sales cannot take place.CHANNEL MARKETING
SUPPORT TO TIED AGENTS
a. CertificatesThese are awarded to top performing advisors for
their contribution to sales of Pension Plans, Unit Linked Plans and
sales to High Net worth Individuals. It is a source of instant
gratification to the sales team for their performance.b.
Banners
The corporate banner was designed for the launch of the Church
gate Branch. It can be used to provide corporate brand visibility
for similar occasions.
c. Backdrop for Exhibition StallThis backdrop was designed to
provide corporate brand visibility for the exhibition stall at
Sakal in Pune. It can be used for forthcoming personal finance
exhibitions that we participate in.
MARKETING STRATEGYReliance Life Insurance Company Ltd is upbeat
on the emerging opportunities in the areas of health insurance and
pension products.
The private insurance major proposes to take advantage of its
vast network of 1145 branches with 96 regions, advisor strength of
5lac,
Reliance said the company was also planning to aggressively
expand its network. However, Reliance refused to divulge details
pertaining to number of new branches and advisors being
planned.
Reliance also declined to quantify the size of opportunities in
the health insurance and pension products that the company is
looking at. Reliance can only say that we are very upbeat on the
opportunities emerging in health insurance and pension segments. We
have major plans for network expansion to exploit the
opportunities.
According to Reliance, though the contribution of health
insurance, thrown open to life insurers just recently, is currently
insignificant, the company expects a significant contribution in
the next couple of years.
Reliance is confident of growing at over 60 per cent this year
and retain our market leadership position," Reliance said. Capital
infusion stating that the company requires significant capital
infusion to implement its ambitious growth plans,
Reliance, however, said the company was yet estimates its exact
capital requirements now. "Both the partners are ready to pump the
capital as and when required."
Sharing the details on some of interesting trends observed by
Reliance Life in the falling stock markets, Reliance said the
investors were still demonstrating their faith in equities under
the unit-linked insurance policies (ULIPs).
BRAND AWARENESS
Brand value reveals that the values people operations, the
associate with Reliance Life are indeed those the company hopes to
project, lifelong protection and value for money. The core value is
protecting your loved ones, through lifes ups and downs.
Brand building in a complex category like life insurance is an
uphill and multi-faceted task. At the time of relaunching
operations, the communication task was to build credibility, so as
to give the customer the confidence that it was a company that
could be trusted to invest funds with. The aim was to encourage
people to view insurance as a compulsory tax saving instrument, but
as a means to lead a worry-free secure life and in the process. The
brand proposition for all the campaigns was reflected in the line:
Suraksha Zindgi ke Har Kadam Par.
The campaign featured a significant competitive advantage, the
sound financial backing and credentials of Reliance Life, and
showcased products from different segments. The advertising idea
was encapsulated in the market symbol campaign contributed
extensively to raising brand awareness and creating a distinctive
identity for the company.
It is a powerful proposition; one, which Reliance Life, is
taking into the marketplace.
DISTRIBUTION CHANNELSTied Agency ChannelAgents of the company,
as the name suggests, drive the tied agency channel. For insurance
distribution, this is the most popular channel. This channel
sourced 75% of Reliance life business in FY 2009.C.D.A (CHANNEL
DEVLOPMENT ASSOCIATE
C.D.A.S are those entities who can recruit their own team and
source business through them as well as own sources also.
Corporate Agents
Corporate Agents are corporate entities that source policies for
the Insurance Company with whom they have a tie up. They are
authorized to the source policies for one insurance company
only.
Brokers (T.P.D)
A variant of CAs, Brokers are not tied to a [particular company
and are allowed to source business for more than one insurance
company.
AFFNITY (Direct Marketing)
Direct Marketing, as a channel of distribution, is relatively a
new one. It basically encompasses all unconventional channel of
distribution. Inter alia, it includes call center, internet and
other mass media channels.
RELIANCE LIFE Ready Reckoner
MARCH 31,2009
1. Business Data for FY06
Chapter 2 ParameterChapter 3 2009200820072006
Annualized Premium (Rs Billion)3.5132.752.930.193
Total Received Premium (Rs Bn)23.609.90139%
- new business15.807.50111%
- renewal7.802.40228%
No. of Policies( In Mn)3.107.45.079
No. of Advisors (end of year)56,64832,70672%
No. of Locations (end of year)745428%
No. of Branches (end of year)1145745160118
Key Business Measures
Top Up is an additional amount of premium that is paid by the
customer voluntarily. It is treated at par with SP AND 10% of Top
Up is added to the APE to arrive at the TOTAL APE.
Sum Assured
Sum Assured is the amount of money for which the Insurance is
taken. Pension products like Life Time Pension, Secure Plus Pension
could have zero death benefit.
Average Premium
Average premium is the average size of the policy of Premium
Average Premium = Total APE
Total no. of Policies
Activity RatioIt is a key performance indicator which measures
the efficiency of the SALES TEAM
.
Activity Ratio = Active agents for the period Total agents at
the beginning of the period
ProductivityProductivity is the no. of cases per active
agent.
Productivity = Total Cases No. of active agents
PRODUCT SEGMENTS
Linked ProductsAs the name suggests, the premium received on
these products post mortality charges is invested in funds. These
products are directly linked to of underlying fund e.g. Life Time
Super.Pension Products
A pension product is one which provides for retirement benefits
e.g. Pension, Annuities.
Protection Plans Protect your family even when youre not around
by investing in Reliance protection Plans. Choose a limited period
plan or a lifetime protection plan depending on your needs.Group
ProductsA Group Policy as the name suggests is a policy which
covers a group people e.g. a policy taken by the organization which
covers all the employees.
Savings& Investment PlansIn life, you have always given your
family whatever they have wanted. Yet, there are some promises you
have to fulfill, such as taking your family for a vacation, or
buying that dream house.
Set aside some money to achieve these specific goals with the
help of Reliance Savings & Investment Plans. The plan allows
you to experience the joys of life and provide for your familys
needs.
Enjoy life without worrying about the promises you have madewe
are here to fulfill them.
Rural ProductsRural products are customized to the requirements
of the rural sector. Its a regulatory obligation on every insurance
company to source a certain percentage of the business from the
rural sector.OTHER POLICY RELATED TERMS
Jet Cases
For every insurance case there are certain medical tests
required to warrant the fitness of the assured person. But the
assured already fulfills certain set criteria, then an insurance
policy can be issued to him even without a medical test. These
tests are called Jet Cases.
Non Jet CasesAll the cases which do not fall within the set
criteria can be defined as the Jet Cases are called Non Jet Cases.
Life coverLife Cover is the part on which the cost insurance is
charged, the cost of insurance here is the mortality cost. Life
Cover at any point of time during the tenure of the policy is;
Life Cover = Sum Assured at the point of time Value of units at
that
Point of time
Extended life CoverAfter the maturity of the plan of the policy
holder is provided free cover for 50%of the basic sum assured that
he had taken for next 5 years.
Death BenefitsBenefits paid in a Life Insurance Policy in life
cover in the event of the life assured passing away during the
term.
Life AssuredPerson who is assured under the plan.
Guaranteed Additions
Guaranteed Additions are the ones that the insurer adds to the
Sum Assured.
ProspectsIndividual that has the potential to purchase a life
policy.
ProposerThe person who buys the policy i.e. proposer and the
life assured can be the same person or may be different.
Nominee
The custodian to the claim may or may not be the right owner to
the claim money.
BeneficiaryThe right successor to the claim.
RiderRiders are the features attachable with a main policy which
provides added protection against specific risks at little extra
cost.
UnderwritingUnderwriting is a process of estimation of the risk
assumed under a policy. It forms the basics of the premium charge
for a given sum assured. Mortality ChargesMortality charges are the
risk charges that are levied on the life cover part to provide the
protection benefit to the policyholder.
Products
PRODUCTS
Insurance Solutions for Individuals Reliance Life Insurance
offers a range of innovative, customer-centric products that meet
the needs of customers at every life stage. Its products can be
enhanced with up to 5 riders, to create a customized solution for
each policyholder.
Savings Solutions Secure Plus is a transparent and
feature-packed savings plan that offers 3 levels of protection.
Cash Plus is a transparent, feature-packed savings plan that
offers 3 levels of protection as well as liquidity options.
SavenProtect is a traditional endowment savings plan that offers
life protection along with adequate returns.
CashBak is an anticipated endowment policy ideal for meeting
milestone expenses like a childs marriage, expenses for a childs
higher education or purchase of an asset.
Lifetime & Lifetime offer customers the flexibility and
control to customize the policy to meet the changing needs at
different life stages. Each offer 4 fund options? Preserver,
Protector, Balancer and Maximizer.
Lifeline II is a single premium Market Linked Insurance Plan
which combines life insurance cover with the opportunity to stay
invested in the stock market.
Premier Life is a limited premium paying plan that offers
customers life insurance cover till the age of 75.
Invest Shield Life is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest.
Invest Shield Cash is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest
along with flexible liquidity options.
Invest Shield Gold is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest
along with limited premium payment terms.
Protection Solutions
Life Guard is a protection plan, which offers life covers at
very low cost. It is available in 3 options? Level term assurance,
level term assurance with return of premium and single premium.
Home Assure is a mortgage reducing term assurance plan designed
specifically to help customers cover their home loans in a simple
and cost-effective manner.
Child Plan
Smart Kid education plans provide guaranteed educational
benefits to a child along withlife insurance cover for the parent
who purchases the policy. The policy is designed to provide money
at important milestones in
The childs life. Smart Kid plans are also available in
unit-linked form? Both single premium and regular premium.
Retirement Solutions
Forever Life is a retirement product targeted at individuals in
their thirties.
Secure plus Pension is a flexible pension plan that allows one
to select between 3 levels of cover.
Solutions for GroupsAs an employer, you believe in providing the
best opportunities for your employees while keeping the interests
of the company in mind. How will you strike a balance between the
two?
Reliance Life Insurance offers you a win-win solution with
Solutions for Groups. Not only are your employees covered for life
from accidents and disablements, you can also efficiently manage
their future with gratuity and pension plans.
So invest in Reliance Solutions for Groups to give your
employees a sense of belonging and feel at peace knowing that you
have fulfilled your obligation towards your corporate family.
As an employer, you believe in providing the best opportunities
for your employees while keeping the interests of the company in
mind. How will you strike a balance between the two?
Reliance Life Insurance offers you a win-win solution with
Solutions for Groups. Not only are your employees covered for life
from accidents and disablements, you can also efficiently manage
their future with gratuity and pension plans.
So invest in Reliance Solutions for Groups to give your
employees a sense of belonging and feel at peace knowing that you
have fulfilled your obligation towards your corporate family.
Health Solution
Health Assure: Is a regular premium plan which provides l ong
term cover against 6 critical illnesses by providing policyholder
with financial assistance, irrespective of the actual medical
expenses.
Health Assure Plus: Is a regular premium plan which provides
long term cover against 6 critical illnesses by providing financial
assistance, irrespective of actual medical expenses, as well as an
equivalent life insurance cover
UNIT LINKED PRODUCTSUNIT LINK INSURANCE PLANS(ULIP)
The higher the insurance cover would be, the lesser the portion
that goes into the investment corpus. In a ULIP the investor can
switch from equity to debt-and vice versa-depending on his life
stage. Investors can also respond to the changes in the market
scenario. An investor can switch from the equity fund to the debt
ULIP is life insurance solution that provides for the benefits of
protection and flexibility in investment. The investment is denoted
as units and is represented by the value that it has attained
called as Net Asset Value (NAV).ULIP came into play in the 1960s
and became very popular in Western Europe and Americas. ULIPS also
offer a great degree of transparency and flexibility to the
investors. As times progressed the plans were also successfully
mapped along with life insurance need to retirement planning. In
todays times, ULIP provides solution for insurance planning,
financial needs, financial planning for childrens future and
retirement planning.
ULIPS combine the benefits of insurance and mutual funds. A
portion of the investor goes into buying insurance cover and the
rest is invested in the fund of his choice-equity, balanced or
debt. The cover is ordinarily five, 10 or 20 times the premium
paid.
Funds if he feels that the stock market is overheated and due
for a correction. But these are long-term investments and daily
fluctuations in the NAV should not impact an investors decision.
Investors can also top up their
ULIPS by investing more than the premium payable in a year.
Through there is no upper limit for tops-ups; they are not eligible
for tax deductionsAccording to the IRDA, a company
offeringunit-linked plans must give the investor an option to
choose among debt, balanced and equity funds. If they opt for a
unit-linked endowment policy, they can choose to invest their
premiums in debt, balanced or equity plans.If they choose a debt
plan, the majority of their premiums will get invested in debt
securities like gilts and bonds. If they choose equity, then a
major portion of their premiums will be invested in the equity
market. The plan they choose would depend on their risk profile and
their investment need.
Since ULIP is an insurance policy, incomes or profits arising
from the investment are tax-free. It has the double benefit of
providing a RISK cover and investing in stock markets. Unlike
traditional plans ULIPS are subject to the risk factors where the
risk is borne by the policyholders, the investment risk is related
with the stock markets and accordingly the NAVs of the units go up
and down depending upon the funds performance and the factors
affecting the capital market. ULIPs have been doing in the recent
past, it can be seen that Demands are always increasing and the
main thing is that they are keeping pace with global trends with
ULIPs performing well across the board.
Description of the current state
Why ULIPs? Firstly, ULIP is a bundled product of investments and
insurance proceeds. So if you have a ULIP invested in equities, you
are exposing your life insurance monies as well as your investable
surplus to the vagaries of equity markets. While it is fine and
even sensible to let your investable assets get an equity flavor,
the same cannot be said about your life insurance monies, which to
a large extent should be sacred. The volatility in equity markets
can disturb the calmest of minds and the last thing you want to see
is your nest egg being eroded by the latest slide in equity
markets. A ULIP policyholder has the option to invest in a variety
of funds, depending on his risk profile. If one does not have the
appetite to invest in equity, they can choose a debt or balanced
fund.
The structure of a ULIP takes care of quite a bit of the
uncertainty in the markets. Insurance companies understand the need
to give insurance-seekers the flexibility to rethink their
investment strategy in view of market histrionics. There is an
option for the insurance-seeker to switch to another plan with a
lower or zero equity component to stem the loss in a falling equity
market. The switch option allows customers to switch between fund
options, thereby making adjustments to any perceived risks.
However, for investors to make the right switch they need to track
markets actively and be well-informed, which is actually the job of
the investment advisor/consultant.
ULIPs are also suitable for individuals who are already
adequately insured and are reasonably well-informed and savvy to
take active investment decisions by using the `switch option' that
is provided to a ULIP policyholder. Also policyholders with regular
endowment plans who are not satisfied with the 4-6% returns can
consider taking a ULIP with a lower equity component. It is best if
insurance-seekers tread the middle path and choose balanced plans
(with about 50-60% equity component). Ideally they need to avoid
taking the aggressive 100% equity ULIP, which could needlessly
expose their assets to market volatility.ULIP provides multiple
benefits to the consumer 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 Liquidity
Tax PlanningREASONS FOR POPULARITY OF ULIP
ULIPs offer a twin benefitULIPs serve the purpose of providing
life insurance combined with savings at market-linked returns. This
is more beneficial to the investor as compared to his investment in
a mutual fund which does not offer a life cover. Moreover, they
offer transparent disclosure, monthly portfolios and daily NAVs
(net asset values). ULIPs have multiple investment options
The individuals have an option of investing based on his market
analysis and his risk profile. Generally there are three categories
of ULIPs.
Aggressive ULIPs (which can typically invest 80%-100% in
equities, balance in debt).
Balanced ULIPs (can typically invest around 40%-60% in
equities)
Conservative ULIPs (can typically invest up to 20% in equities)
ULIPS are Flexible The individuals are allowed to switch between
the ULIP variants outlined above to capitalize on investment
opportunities across the equity and debt markets. Free switches are
an important feature that allows the informed individual/investor
to benefit from the vagaries of stock/debt markets. For instance,
when stock markets were on the brink of 7,000 points (Sensex), the
prudent investor would prefer to shift his assets from an
Aggressive ULIP to a low-risk Conservative ULIP ULIPs are designed
to feature Systematic Investment Plan (SIP)
As generally advocated by the mutual fund industry, ULIPs also
facilitate SIP to the investors. With an SIP, individuals invest
their funds regularly over time intervals of a month/quarter and
don't have to worry about `timing' the stock markets. An added
benefit with ULIPs is that individuals can also invest a one-time
amount in the ULIP either to benefit from opportunities in the
stock markets or if they have an investible surplus in a particular
year that they wish to put aside for the future.Ulips vs. Mutual
FundsMFs and ULIPs essentially cant be compared as ULIPs are long
term products, with a typical commitment of 10 years or more, while
mutual funds are medium-term products with a period of three years
or so.ULIPsMutual Funds
Investment amountsDetermined by the investor and can be modified
as wellMinimum investment amounts are determined by the fund
house
ExpensesNo upper limits, expenses determined by the insurance
companyUpper limits for expenses chargeable to investors have been
set by the regulator
Portfolio disclosureNot mandatoryQuarterly disclosures are
mandatory
Modifying asset allocationGenerally permitted for free or at a
nominal costEntry/exit loads have to be borne by the investor
Tax benefitsSection 80C benefits are available on all ULIP
investmentsSection 80C benefits are available only on investments
in tax-saving funds
SWOT Analysis Of ULIP As a Product
STRENGTHS Investment plus Insurance
High Returns
Transparent
Flexibility
WEAKNESSES Lack of Awareness.
High administrative charges
High mortality charges.
High fixed annual charges.
OPPORTUNITIES Large Untapped Market
Products for every age group and income level
Benefits of both an investment and insurance product
THREATS Presence of very strong competitors.
Aggressive marketing by competitors.
Not considered reliable.
Mutual funds and Fixed Deposits..
Reliance Endowment Plan
Welcome to Reliance LifeIt takes a lot for a dream to become a
reality. And money is surely an important part of it.
Key Features
On maturity receive Sum Assured plus bonuses
Wealth creation through bonus additions
More Value for your money by way of High Sum Assured Reb
Choose to add the Benefit of three Riders-Reliance Term Life
Insurance Bene
fit Rider, Reliance Critical Conditions Rider and Reliance
Accidental Death and Total and Permanent Disablement Rider
Choose to avail of Policy Loan after three years
Reliance Endowment Plan gives you just the financial
independence to realise your dreams in the future. It lets you
decide how much you would like to set as your Sum Assured based on
your current financial position and your expected future expenses
So, go ahead... dream!!.
Reliance Wealth + Health Plan Wealth bhi. Health bhi.
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO
IS BORNE BY THE POLICYHOLDER.
There are times when late working hours take precedence over
your health check-ups. And there are times when a visit to the
doctor seems more important than dividends on your shares. In the
rat race to make money, we often forget to take care of
ourselves.
We understand this predicament. Here is a plan that will ensure
that your wealth keeps increasing constantly and yet your health
does not take a backseat. The Reliance Wealth+Health Plan. A plan
that gives you the benefits of wealth bhi health bhi.
Life changes and as it does, so do your priorities. After all,
the circumstances of your life can determine the type of health
coverage you need.
India has made rapid strides in the health sector. Since
Independence, life expectancy has gone up markedly and survival
rates have also increased, still critical health issues remain.
Infectious diseases continue to claim a large number of lives.
Perhaps you're a freshly minted graduate, a joyful newlywed,
retiring early or between jobs. Maybe you're running your own
business or raising a family or both. In any of the situations,
GOOD or BAD, health cannot be taken for granted.
All are affected by the rising costs of medical expenses. Thats
why it is important to plan early and in advance.
Reliance Cash Flow PlanLife is full of demands...
While most insurance plans block your money for a certain period
of time, Reliance Cash Flow Plan gives you the double benefit of
life insurance along with easy liquidity through lump sum cash. It
provides money periodically when you need it.
It lets you live life to the fullest today and at the same time,
helps you stay protected for tomorrow by giving you the flexibility
of receiving a specified percentage of the Sum Assured at specified
intervals.Key Features
Easy Liquidity - Get periodic cash flows at the end of the
fourth year and thereafter at the end of every three years.
Wealth creation through bonus additions.
On maturity, receive accumulated bonuses along with final lump
sum payout
More value for your money by way of High Sum Assured Rebate
Full Sum Assured plus bonuses in case of your unfortunate death.
This is over and above the Survival Benefits already paid
Option to add two Riders - Critical Illness Rider &
Accidental Death Benefit and Total and Permanent Disablement
Rider
Reliance Super Automatic Investment Plan A plan that does all
the work, while I relax
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PROTFOLIO
IS BORNE BY THE POLICYHOLDER
Life is indeed delightful if you have the freedom to make
choices. Reliance Super Automatic Investment Plan gives you just
that ample freedom! And we make this freedom more enjoyable by
giving you a sense of security. Whether its your insurance or
investments, we let you make the choice and leave the rest to
us.
So allow us to take over and rest assured, because for us your
LIFE comes FIRST always. This plan promises Life cover, with a
complete flexibility to gain control over your investments in tune
with your financials needs and your risk appetite. We present a
plan that promises what you deserve as you reach greater heights in
life.
For the select few like you, Reliance Super Automatic Investment
Plan is an enhanced Unit Linked plan addressing comprehensive needs
to strike that perfect balance of Protection and Savings with full
flexibility as you grow in your career. Reliance Super Automatic
Investment Plan gives you full flexibility to choose just the right
investment mix to reap higher benefits.
Key Features Reliance Super Automatic Invest Plan
Two plan options to choose from Ready-made &
Tailor-made.
Life Stage asset allocation to ensure automatic change in
investment patterns - under Ready-made Plan option.
Freedom to decide your own fund mix based on your risk profile
under Tailor-made Plan
Allows Systematic transfer plan to average out the cost of unit
purchases in equity.
Regular, limited, single premium paying options
Unmatched flexibility through our Exchange Option to move
between Reliance suite of unit linked products
Liquidity in the form of partial withdrawal.Option to package
policy with Reliance Major Surgical Benefit Rider, Reliance
Critical Conditions (25) Rider, Reliance Term Life Insurance
Benefit Rider, Reliance Accidental Death and Total and Permanent
Disablement Rider
Reliance Money Guarantee Plan Unbeatable protection For your
investments
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO
IS BORNE BY THE POLICYHOLDER.Yes, its a trio the pace setter plan
which promises Life Protection, an opportunity to gain control over
your investments along with protection of downside risk!
For the select few like you, the Reliance Money Guarantee Plan
is Unit Linked product addressing comprehensive need to strike that
perfect balance of Protection and Savings that you 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 market simultaneously
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 Exchange Option to move
between the Reliance Life 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
Reliance Super Golden Years Plan Age need not slow you
down...
Retirement means different things to different people, while
some want to relax and take a trip around the world, some want to
start up a venture of their own, and pursue a dream harnessed for
years. The power to make your autumn years special lies only with
you. The Reliance Super Golden Years Plan gives you the power and
the right kind of solution - A retirement plan that allows you to
save systematically and generate the much-needed corpus to make
your olden years look golden.
Key Features Reliance Super Golden Years Plan:
Invest systematically and secure your golden years
A flexible unit-linked pension product that is different from
traditional life insurance products with Vesting Age between 45
& 70 years
Eight different investment funds to choose from
Flexibility to switch between funds
Option to pay Regular, Single as well as Top-up premiums
Flexibility to advance / extend your Vesting Age
Tax free commutation up to one third of Fund Value at Vesting
age
Reliance Super Invest Assure Plan Get more than you can ask
for.
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO
IS BORNE BY THE POLICYHOLDER.You have always aspired for the best
in life. And we help you achieve that.
Heres a unique plan which combines protection and savings. It
also offers complete flexibility to gain control over your
investments vis--vis your financial needs and risk appetite.
We value your regular investments and thus reward you with
guaranteed additions thus promising unmatched benefits. This plan
also offers you a unique option of moving from a conservative fund
to an aggressive fund systematically, to take advantage of the
Rupee cost averaging model.
A plan that promises you, what you ought to deserve as you reach
greater heights in life. What more can you ask for except gifting
yourself with Reliance Super Invest Assure Plan.
Key features Reliance Super Invest Assure Plan
Twin benefit of market linked return and insurance
protection.
Guaranteed additions at the rate of 50% of your first years
basic premium at interval of every 5 years from 10th year till
policy is in force.
Investment opportunity with flexibility -Choose from 8 pure
investment fund options.
Liquidity in the form of partial withdrawals.
A host of optional rider benefits to enhance protection
cover.
Reliance Child Plan Plan for your child today so that they can
reap the benefits tomorrow
As a parent, it is only natural to dream of a smooth and
blissful life for your child. Which is exactly why you need to
secure your childs tomorrow, today?
Reliance Child Plan helps you save systematically so that you
can give your child the much-needed financial security in the
future. Simply put, Reliance Child Plan gives you the freedom to
enjoy every moment with your child today, without worrying about
his/her tomorrow.Key Features
Risk protection for you during the term of the Policy
Accumulated bonus at the end of the Policy Term
25% of Sum Assured payable every year as lump sum Benefit during
the last four Policy Anniversaries
All future premiums are waived in the event of unfortunate loss
of life
Guaranteed Fixed Benefits continue even after loss of life of
the Policy holder
More value for your money by way of High Sum Assured Rebate
Choose to add the Benefit of two Riders - Critical Illness and
Accidental Death Benefit and Total and Permanent Disablement
Rider
Policy participates in profit even after the loss of life of the
life Assured
Reliance Secure Child Plan He wants to be you. You want him to
reach higher.
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO
IS BORNE BY THE POLICYHOLDER.
Do you see your child becoming a trailblazer?
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. Start saving 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
Reliance Special Endowment PlanSecure your dreams today...
Reliance Special Endowment Plan is the key to all your financial
needs. You get a desired lump sum after a specified period.
However, your life insurance protection continues for an extended
period. If anything were to happen to you, your beneficiary will
get another Sum Assured along with the bonuses. The Policy comes
with an added feature of a limited Premium Term, which is always
five years less than the Policy Term.
Key Features
Twin Benefit of protection and savings
Sum Assured is paid on survival, at the end of the Premium
Paying Term
Life Cover for full Sum Assured continues beyond Premium Paying
Term
Extended Life Cover for five years after Premium Paying Term
Wealth creation through bonus additions
More value for your money by way of High Sum Assured Rebate
Choose to add the Benefit of two Riders - Critical Illness and
Accidental Death Benefit and Total and Permanent Disablement
Rider
Choose to avail of a Policy Loan available after three full
years of premium payment
Policy participates in profits even after Premium Paying
Term
RESEARCH METHODOLOGY RESEARCH OBJECTIVES
To find out the peoples perception about life insurance.
To find out whether people were really aware of life
insurance.
To find out what respondents expect from life insurance
policies.
To study the opinion of the policy holders related to their
satisfaction.
LOCATION: -- Etah CityTYPES OF RESEARCH
This is descriptive research as this research includes surveys
and fact finding inquires of different kinds. So descriptive
research help in knowing about particular item or group of items in
other words it describes the state as it exist at present.
Type of Research Used ----- Descriptive Research
DATA COLLECTED
The data collected in this research is first hand so if primary
data. It is collected directly from the respondent through
questionnaire and through visualization.
Data Collected:
a) Primary
b) Secondary
DATA COLLECTION METHOD
The data is collected for research questionnaire method and
through
A questionnaire is framed then data collected by making it fill
by different respondent.DATA COLLECTION INSTRUMENT
It is closed ended and open ended both types of questionnaire.
If questionnaire is closed ended then questions are in the form of
Yes or No and if questionnaire is Open ended then questions are in
the form of any numerical form and explanation. SAMPLE SIZE The
size of sample is 100.
Process of Research
For conducting research personal contacts for necessary actions
for which a number of relevant questions in respect of the same can
also not dispensed with in order to obtain a clear picture of the
topic, following questions were formulated for obtaining concrete
views of the individuals of different kinds.
Personal contracts with 100 persons belonging to the age group
of 18-65 out of which 20 were ladies 80 were gents. In this 30 were
Government Servants, 50 were Businessmen, 20 were
Professionals.
The questionnaire, which I had prepared before conducting the
survey, is given on the next page.
SAMPLE TECHNIQUES
Sampling techniques used in judgment sampling. As the selection
of sample was done according to the researcher convenience. Sample
Design Used:
c) Cluster sampling
d) Random Sampling
SAMPLE UNIT
From the customers of Etah Cluster.
DATA ANALYSIS TECHNIQUES
Analysis of data is done through quantitative method that is
numerical figure.
DATA ANALYSIS INSTRUMENT
Instrument used for data analysis is tabulation of data, graph
and tables.
QUESTIONNAIRE
Q- 1 Do you know about the advantages of life insurance? YES
NO
Q- 2 Do you need a life insurance protection? YES NO
Q- 3 Do you know about Reliance Life Insurance? YES NOQ- 4 Are
you using any product of Reliance Life? YES NO
Q- 5 If yes, then what is the purpose of it?A- Tax saving
purpose
B- Short term investment purpose
C- Business purpose
D- High investment returns purpose
E- Life insurance purpose
Q- 6 If no, then would you like to take any policy from Reliance
Life in future?
YES NOQ-7 Do you think that your life insurance policy covers
you and your liabilities?
YES NO
Q- 8 Do you think that Reliance Life has been successful in
capturing the market in very short period?
YES NO
Q-9 What are the critical success factors of Reliance Life,
according to you, for achieving its goal in very short period?A-
Customer satisfaction
B- Product benefit
C- High investment returns
D- Brand name of ICICI
E- Long extensive channel of distribution
Q-10 Which life insurance company you believe most?
1- Government 2- Private
Q-11 Which plan you want most? A- Super Automatic Investment
Plan B- Super Golden Year Plan
C- Super Invest Assure Plan D- Secure Child Plan Q-12 How many
insurance companies are you aware about?
ICICI Prudential LIC TATA AIG
Bajaj Allianz
Aviva HDFC Standard life
Birla Sun Life
Others .
Q- 13 Would you like to give your valuable suggestions to
Reliance Life for any specific improvement or further
development?
Name:- Age:-
Occupation:- ( Salaried/ Professional/ Businessman ) Contact
No.: THANK YOU
DATA ANALYSISDuring personal contacts the aforesaid questions
were put by me personally to each and every individuals and as per
their views the percentage of persons for and against each and
every question is as follows:-
Q 1- Do you know the advantages of Life Insurance?
Ans- After conducting the survey of 100 peoples what I come to
know does that everybody know the advantages of Life Insurance.
Q 2- Do you need a life insurance protection?
Ans Life Insurance is very necessary because there is no
certainty of life any mishap can occur at any time. In this
situation if the guardian of the family who supports the family
dies untimely remaining members of the family may be compelled to
face lot of problems. To compensate them life insurance policy may
prove fruitful to that family in order to maintain stability in the
family. Some people revealed that there is no need of life
insurance protection because if we born it is God who will look
after them.
The survey of 100people ensures that 80% people want the life
insurance protection. It means 80 people while 20% people did not
want the life insurance protection. It means 20 people.Q 3- Do you
know about Reliance Life Insurance?Ans- After the survey was
conducted was conducted the result which used to come out is that
in 100 people 70% people said that they know Reliance Life 70%
means 70 while 30% said that they dont know it 30% means30 people.
It means that people is very much aware about Reliance Life.
Q 4- Are you using any product of Reliance Life?Ans- In the
survey of100people 40% people said that they are using the product
of Reliance Life i.e. 40 while 60% said that they are not using any
product of life insurance i.e. 60.
Q 5- If yes, then what is the purpose of it?Ans- This question
is directly related to the above one, 40% people are using the
product of Reliance Life the purpose is given below according to
the percentage and number of the people.
S. No.Purpose%age of peopleNo. of people
1.Tax Saving Purpose52
2.Short Term Investment Purpose187
3.Business Purpose84
4.High Investment Return Purpose3514
5.Life Insurance Purpose3213
Q 6 If no, then would you like to take any policy from Reliance
Life in future?
Ans- This question is also directly related to Q-4 60% people
said that they are not using any product of Reliance Life i.e. 60
people. In this 60 people 57% said that they will use this product
in future i.e. 34 people while 43% said they dont have any interest
in Reliance Life i.e. 26 people.
.
Q 7- Do you think that your life insurance policy covers you and
your liabilities ?
Ans- In this question 70% i.e.56 people said their life
insurance policy covers them and their liabilities, because in case
of any un to do happening in their family in their absence
insurance policy will support their family while, 30% people i.e.24
said that they dont need any life insurance policy because they
have sufficient money and property for them and their family.
Q 8- Do you think that Reliance Life has been successful in
capturing the market in very short period?Ans- After conducting the
survey what is revealed that 80% i.e. 56 people said that yes
Reliance Life has been successful in capturing the market in very
short period while 20% i.e. 14 people said no.
People said yes, their opinion was that previously Government
policies like L.I.C. was dominating in the society but today some
private companies in this field are doing better in comparison to
Government policies because their return are better one. Red tapism
laxity does not prevail in this life insurance companies. In this
way Reliance Life has been successful in capturing the market in
very short period.
People who said no are mini minded they faith in Government
sector because there is no chance of losing their money. So thats
why they dont want to adopt Reliance Life policies.
Q 9- What are thecritical success factors of Reliance Life,
according to you for achieving its goal in very short period?Ans-
Answer of this question is according to the percentage of
people.
S.No.Success Factors%age of peopleNo. of people
1.Customer Satisfaction2920
2.Product Benefit2115
3.High Investment Return1913
4.Brand Name of ICICI2518
5.Long Channel of Distribution64
Q-10 Which Life Insurance Company you believe most?
Ans- In this question the options for the people are Government
or Private company. The answer is given in table given below:-
S.No.Sector% of peopleNo. of people
1.Government7070
2.Private3030
Q-11 which plan you want most?Ans- After conducting the survey I
had found that people want to invest the money with Life Insurance
plan in order to get high return After getting the final result
what I come to know people want to invest their money in Life Time
policy because in this policy the rate of interest is very
good.
.
S.No.Types of Plan% of peopleNo. of people
1.ULIP 5321
2.Retirement Plan198
3.Child Plan166
4.Health Plan125
Q-12 How many insurance companies are you aware about?
Ans- Survey reveals that it is only and only L.I.C. about which
100% people are aware about the reason is that L.I.C. is existing
from so many years. Percentage of other companies is given in the
table below:-
S.No.Insurance Companies% of peopleNo. of people
1.Reliance Life8585
2.L.I.C.100100
3.ICICI Prudential9090
4.Bajaj Allianz8484
5.AVIVA3232
6.HDFC Standard Life7272
7.Birla Sun Life2525
SWOT ANALYSIS
STRENGTH
Company Reputation: - Company reputation is one of the best in
Indian Insurance industry. Reliance Life is among the top three
companies.
Market Share: - the market share of the company is more than
10%.
Customer Satisfaction: - It is one of the main aims of the
company. It is the mission of the company.
Service Quality: - The service of the comp [any is
transparent.
Sales Force Effectiveness: - Sales department of the company is
very effective and enthusiastic regarding their job.
Product Quality: - Quality of the products is very good, which
suits everybodys need.
Distribution Effectiveness: - Distribution channel of the
company is ve3ry effective.
Customers Retention: - Retention of the customers is very
satisfying for the company.WEAKNESS
Geographical Coverage: - The Company is not in every part of the
country.
Technical Skills: - To understand the policies of the company is
very difficult for those who do not understand English.
Product Problem: - Some policies has no maturity benefits, such
policies covers only the risks.
OPPURTINITY
Recruitment: - Company has given a lot of job opportunities to
the fresher.
Training Programme: - companies training programme is very
effective and valuable.
Market Development Strategy: - There are lots of opportunities
to develop the marketing strategy.
THREATS
Various threats are from: -
Competitors: -
Higher Costs
Government Policies
IRDA Rules and Regulations
CONCLUSIONOn the basis of data collected and analysis of those
data, we have find some of point the Reliance life insurance
company is the successes following are the conclusion that I have
drown:
1. People in Etah are aware of insurance and its important.
2. They are aware of private players in insurance and generally
know the name of RELIANCE LIFE INSURENCE.
3. Services of Reliance are very transparent. It is available
throughout the country.
4. Customer satisfaction is the major intention from Reliance
Life.5. Reliance Life is made for all class of society.
6. It is able to capturing the market because its have brand
image.7. 40% of the people take the policies of Reliance Life
Insurance.
8. The main purpose of investment of the money is high
return.LIMITATIONSWhile working on the topic assigned to me for
research work, I have chosen the way of random sampling. But while
carrying out the work I have faced the following problems i.e.
limitations to my studies;
1. In the month of June to July in ETAH when the temperature was
high & due to frequent power cut in city some people were not
ready to talk over the topic covered under Questionnaire.
2. Due to uneven social environment of different place, the area
is not fully covered as planned.
3. I have also faced the problem at the time of training that an
individual who is already a financial consultant of a company at
the same time he/she cant be the financial consultant of other
company.
4. The researcher found lack of time and done a precise in-depth
study and bring out the available data and information
5. Earlier there was not that much research had been conduct on
this topic, so the researcher fined it difficult to group the
information and get the best output. 6. As the researcher had only
used the primary & secondary data the lack or impropriety in
the secondary data will also present in the research
project.sRECOMMENDATIONWhile studying the insurance market in Etah
city giving special reference to RELIANCE LIFE INSURANCE. I have
gone through number of statements of people about policies they
have taken from the market leader but were not satisfied with after
sale service they are receiving. On the basis of that I recommend
the market challenger that:
1. There should be post purchase interaction with the policy
holder.
2. More customer oriented educated sales force should be
employed to educate the people about unit-linked plans.
3. Open some more branches in semi urban and rural area.
4. Provide more services to customer.
5. Bring some unit linked life insurance plans in the
market.
6. Trained the financial advisors more
efficiently.BIBLIOGRAPHYBY THE HELP OF Books1. Business Environment
by
Francis Cherunilam
2. Human Resources & Personnel Management
K. Ashwathappa
3. Theory And Practice On Social Research
Hansraj
4. Research Methodology
C. R. Kothari5. Marketing Management
Phillip kotlarBY THE HELP OF ManualsRELIANCE LIFE INSURANCE
Annual Report 2006 & 2007 & intranet.BY THE HELP OF OTHER
SOURSE By the heads and the consultant of the RELIANCE LIFE
INSURENCE.BY THE HELP OF Websites
1. WWW.reliancelife.co.in.2. WWW.IRDAINDIA.ORG3.
WWW.INSURE2BSECURE.COM4. WWW.GOOGLE.COM
PROTECTION
PLANS
PENSION
PLANS
SAVING
PLANS
PRODUCTS
OFFERED
EMBED MSGraph.Chart.8 \s
SINGLE PREMIUM WHOLE OF LIFE
PLAN
LOAN COVER
TERM ASSURANCE PLAN
TERM ASSURANCE
PLAN
PROTECTION PLANS
UNIT LINKED
PENSION
PLUS
UNIT LINKED
PENSION
PERSONAL
PENSION
PLAN
PENSION PLANS
UNIT LINKED YOUNG STAR PLUS
UNIT LINKED YOUNG STAR PLAN
UNIT LINKED ENDOWMENT PLUS
UNIT LINKED ENDOWMENT PLAN
CHILDRENS PLAN
MONEY BACK PLAN
ENDOWMENT ASSURANCE PLAN
SAVING PLANS
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