INTRODUCTION TO TOPIC

Every asset has a value for its owner and also for those who are benefited with the
existence of that asset. Insurance is concerned with the protection of economic value of
asset.
All of us are interested in the creation of asset because:
1. All assets have value.
2. They yield income to the owner.
3. They meet some other needs of the owner.
4. They may provide satisfaction of some needs and also yield income to the owner.
Under the life insurance, the insurance company guarantees to pay, in consideration of a
regular premium, a certain sum of money to the policy holder on his attaining a certain
age or to his nominee on his death, whichever is earlier. Life insurance is also known as
Assurance because sooner or later the amount of the policy must be paid.

The beginning of insurance business is traced to the city of London. It started with
the marine business. Marine traders, who used to gather at Lloyds coffee house in
London, agreed to share losses to goods during transportation by ship.
Assets are likely to be destroyed or made non-functional due to accidental
occurrences called perils. Asset can, therefore, be insured.
Possibility of damage to asset caused by a peril is the risk that asset is exposed to.
Risk means uncertainty or unpredictability about future loss or damage, which
may or may not happen. This refers to the losses, which may happen suddenly and
unexpectedly.
This is because of uncertainty about the risk that insurance plays a role.

 Insurance becomes relevant only if there are uncertainties of occurrence of event

leading to losses. Insurance is done against the contingency of the happening of
such events.
Insurance is a contract in writing between two parties whereby one party
called insurer undertakes in exchange for a fixed sum called premium, to pay the other
party called insurer a fixed amount of money on the happening of certain event.
Insurance indemnifies assets and Insurance and General Insurance (Non- life insurance).
But the article focuses on life insurance.
Life insurance is a contract for payment a sum of money to the person
assured (or failing him/her, to the person entitled to receive the same) on the happening
of the event insured against. Usually the contract provides for the payment of and amount
on the date of maturity or specified dates at periodic intervals or on unfortunate depth, if
it occurs earlier. Among the other things the contract also provides for the payment of
premium periodically, to the Corporation by the assured. Life insurance is universally
acknowledged to be an institution, which eliminates risk , substituting certainty for
uncertainty and comes to the timely aid of the family in the unfortunate event of the death
or of total permanent disability of the breadwinner.
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.

As with so many things in so many facets of our lives, insurance too was born out
of a primal need and shaped by socio-economics realities of the time. The story goes back
to around 2100 BC, to the ancient civilization of Babylon and business practice call
bottomry. For all practical purpose a form of marine insurance, bottomry enabled ship
owners to borrow money against their ships to pay for the trip. With piracy rampant on
high seas, traders and seafarers were reluctant to sail to other them some semblance of
security.
The arrangement was that only if their ship returned did traders have to repay the
loan, along with interest. Which was pegged at an above-market rate for the risk covered.
So,if their ship failed to make it back, they did not have to repay the loan, thereby
recovering some or all of the loss.
With the marine route being the bedrock of trade and commerce in those days, the
practice of bottomry evolved, and spread. With the growth of towns and trade in Europe,
medieval guilds (groups organized on the basis of some common objective, like traders)
pooled in money to protect their members from loss by fire and shipwreck, to pay ransom
if they were captured by pirates, and to provide burial and support in sickness and
poverty.
By the middle of the 14th century, as evidenced by the earliest known insurance
contract a crisis. Several insurers defaulted on their contractual obligations to
policyholders, citing investment losses : some even folded up. The Insurance Act 1938
introduced state controls on insurance, but even this failed to safeguard policyholder
interests.

NATIONALISATION
Post-independence, discontent against insurers reached a pitch. Business was
chaotic, foreign insurers were leaving the country, and Indian insurers, driven by greed
and business considerations, werent earning much credibility. The cry for nationalizing
insurance grew louder-a move that insurers were, of course, opposed to.
On 19 January 1956, the life insurance business was nationalized. In one swoop,
the government snapped up 245 insurers and provident societies. Eight months later, the
Life Insurance Corporation (LIC) was formed. Which took over the business of the
erstwhile private insurers, and started expanding at a frenetic pace.
Today, this monolith has 2,100 branch offices, 800,000 agents, and offers a bevy
of insurance and investment products. LIC marketed insurance less as a risk management
tool and more as a savings instrument with a edge.
A book at LICs policy profiles shows that just 18 percent of policies in fore
currently are protection plans; insurance-cum-investment plans account for 60 percent,
with the balance being pure investment plans. Still, households embraced these safe
investment avenues, with the sum assured ( or the total value of cover) increasings form
Rs. 1,476 crore in 1957 to Rs. 459201 crore in 1998-99.
Similar circumstances led to the nationalization of non-life ( or general
insurance). As in life insurance, pre-nationalization, there were an inordinately large
number of insurers, many of whom were notorious for flouting investment norms and
delaying settlement of claims.
Non-life insurance was nationalized in 1972. General insurance corporation (GIC) was
set up as a holding company ; a total of 107 private insurers were merged and grouped to
form GICs four subsidiaries.

PRIVATISATION
There were various reason given by the government to nationalize the insurance
sector ,take insurance to the masses, facilitate the flow of long- term funds (which
4

insurance companies ,by virtue of the business they are in , have ready access to ) into
development infrastructure in the country , and safeguard the interest of policyholders.
Towards this end, state insurers did develop the insurance sector , though most expert
believe these monopolies could have done much ,much more.
In the early nineties, the government went on a reforms binge and started loosening
controls on Indian Industry. In 1993, the government appoint the Malhotra committee,
headed by former RBI Governor R.N. Malhotra to draw up a blueprint for insurance
sector reforms. The panel submitted its report a year later, recommending privatization ,
backed by stiff entry guidelines and stringent ( Genoa, 1347), marine insurance was
common among maritime nations of Europe.
Lloyds of London , the largest marine insurer today was founded in 1688, in a
coffee shop in today. Lloyds coffee House became the preferred place for merchants,
ship owners and underwriters to transact business. Insurance developed rapidly with the
growth of British Commerce in the 17th and 18th centuries , and started becoming
organized , along the way going through a period of defaults and closures.
The British brought insurance to India in 1818, replace with imperialist prejudices.
The Oriental Life Insurance Company, the first insurance company in the country ,
insured only European widows.
British insurers eventually began insuring Indian lives, but for a premium that
was 15-20 percent higher than that payable by the British. It was only in 1870 that the
disparity was corrected six Indians.

peeved by this second class treatment, set up

Bombay Mutual Life Assurance Society, and started insuring Indian lives at the same cost
as British lives. Social discrimination, in fact, turned out to be a catalyst for Indian
initiative in the insurance sector.
In 1909, activist Ishwar Chandra Vidyasagar founded the Hindu family
Annuity fund- the first instance of a pension based investment scheme targeted at
Indians .

As had happened in England earlier, a flood of new players and

patchy regulation snowballed into regulation, so a to avoid a repeat of the pre

nationalization free-for- all.

INTRODUCTION TO INSURANCE
WHAT IS INSURANCE ?
Every asset has a value for its owner and also for those who are benefited with the
existence of that asset. Insurance is concerned with the protection of economic value of
asset.
All of us are interested in the creation of asset because:
1. All assets have value.
2. They yield income to the owner.
3. They meet some other needs of the owner.
4. They may provide satisfaction of some needs and also yield income to the owner.

Under the life insurance, the insurance company guarantees to pay, in consideration of a
regular premium, a certain sum of money to the policy holder on his attaining a certain
age or to his nominee on his death, whichever is earlier. Life insurance is also known as
Assurance because sooner or later the amount of the policy must be paid.
DEFINITIONS
In the words of D.S.Hansel, insurance accumulated c ontributions of all parties

participating in the scheme.

BRIEF HISTORY OF THE INSURANCE

The beginning
The beginning of insurance is traced to the city of London. It started with the marine
business. Marine traders, who used to gather at Lloyds coffee house in London, agreed to
share losses to goods during transportation by ship. Marine related losses include: Loss of ship by sinking due to bad weather in high seas
Goods in transit by ship robbed by sea pirates.
Loss of or damage to the goods in transit by ship due to bad weather in high seas.
The first insurance policy was issued in England in 1583.

PURPOSE AND NEED FOR INSURANCE

Asset are likely to be destroyed or made non-functional due to accidental
occurrences called perils. Asset can, therefore, be insured.
Possibility of damage to asset caused by a peril is the risk that asset is exposed to.
Risk means uncertainty or unpredictability about future loss or damage, which
may or may not happen. This refers to the losses, which may happen suddenly and
unexpectedly.
Insurance becomes relevant only if there are uncertainties of occurrence of event
leading to losses. Insurance is done against the contingency of the happening of
such events.
No uncertainty No insurance.

MECHANISM OF INSURANCE
The concept of insurance is that people exposed to the same risk come together
and agree to share a loss collectively if any one of their members suffer it from
that risk.
The insurance companies play the vital role of implementing this concept they
try bringing together people exposed to the similar risk ; they collect members
contribution in advance in the shape of premium and create a fund out of which
the losses are paid .
In the event of breadwinners death, the family income stops suddenly.
The family income may also stops on retirement of the breadwinner.
Life insurance covers the above contingencies and provides relief to the family in
the event of the death of retirement of the breadwinner.
Variable needs for life insurance can be.

WHY IS INSURANCE
Life insurance has come a long way from the earlier days when it was originally
conceived as a risk covering medium for short periods of time, covering temporary
risk situations, such as sea voyages. As life insurance became more established , it
was realized what a useful tool it was for a number of situations, including
a) Temporary needs / threats :
The original purpose of life insurance remains an important element , namely
providing for replacement of income on death etc.
b) Regular Savings :
Providing for ones family and oneself, as a medium to long term exercise
( through a series of regular payment of premiums ). This has become more
relevant in recent times as people seek financial independence for their family.
c) Investment :
Put simply, the building up of saving while safeguarding it from the ravages of
inflation. Unlike regular saving products, investment products are traditionally
lump sum investment, where the individual makes a one off payment.
d) Retirement :
Provision for later years becomes increasingly necessary, especially in a
changing cultural and social environment. One can buy a suitable insurance
policy, which will provide periodical payment in Ones old age.
Insurance is one of the instruments designed to deal with risk through sharing. In its
simple aspect it is imbued with two fundamental characteristics, viz., transfer of risk from
one group to another group, and facilitates sharing of losses, on some equitable basic , all
members of the group. The importance of insurance is twofold: (1) from individuals
point of view. Insurance is an economic device whereby the individual substituted a small
certain cost for a large uncertain financial loss that would exist if it were not for the
insurance, and (11) from social point of view insurance my be perceived to be an
9

economic instrument that reduces eliminates risk through the process of combining a
sufficient number of homogenous exposures into a group and makes the losses
predictable for a group as a whole.
Insurance is a contract in writing between two parties whereby one party called insurer
undertakes in exchange for a fixed sum called premium , to pay the other party called
insured
a fixed amount of money on the happening of certain event. Insurance indemnifies
such assets and income. Insurance business in India can be broadly divided into two
categories such as life insurance and general insurance (Non life insurance. But the
article focuses on life insurance.
Life insurance is a contract for payment a sum of money to the person assured (or failing
him/her, to the person entitled to receive the same) on the happening of the event insured
against. Usually the contract provides for the payment of and amount on the date of
maturity or specified dates at periodic intervals or on unfortunate depth, if it occurs
earlier. Among the other things the contract also provides for the payment of premium
periodically, to the Corporation by the assured. Life insurance is universally
acknowledged to be an institution, which eliminates risk , substituting certainty for
uncertainty and comes to the timely aid of the family in the unfortunate event of the death
or of total permanent disability of the breadwinner.
In India insurance Co. are categorize in two parts :

10

INSURANCE

Public sector

Private sector

GIC

LIC

New India
Assurance Co.
Ltd.

Oriental
Insurance Co.
Ltd.

11

Many players in
private sector

National
Insurance
CO. Ltd

United India
Insurance
Ltd.

ADVANTAGES OF LIFE INSURANCE

Secured targeted saving a uniqueness
Life insurance is not merely an investment or a saving devices- much than that.
In any other investment or saving avenues, bank deposits , saving certificates or
mutual funds or shares and stocks etc., amount of funds available at any time will
not be more than the amount saved , appreciation or interest earned till then. In
life insurance, the amount available is the one that one wished to have at end of
saving period which may range up to 30 or even more years.
Life insurance has advantages over the other form of savings: Facility of
nomination and assignment makes the claim settlement easy on death.
Life insurance involves compulsory savings.
Tax benefits- on premium paid as well as the amount received by way of claim.
Loans can be raised against a life insurance policy.

12

INSURANCE IN INDIA

LIFE INSURANCE CORPORATION OF INDIA

Life insurance Corporation of India (LIC) was established on I September 1956 to
spread the message of life insurance in the country and mobilise peoples saving for
nation- building activities. LIC with its central office in Mumbai and seven zonal offices
at Mumbai, Calcutta, Delhi, Chennai, Hyderabed, Kanpur and Bhopal, operates through
100 divisional offices in important cities and 2.048 branch offices. LIC has 9.60 lakh
active agents spread over the country. The corporation also transacts business abroad has
offices in Fiji, Mauritius and United Kingdom. LIC is associated with joint ventures
abroad in the field of insurance, namely, ken- India Assurance company Limited, Nairobi;
United Oriental Assurance company Limited , Kuala Lumpur; and life insurance
corporation (International), E.C. Bahrain. It has also entered into an agreement with the
sun life (U.K.) for marketing unit linked life insurance and pension policies in U.K. The
total new business of the corporation during financial year 2001-02 was Rs. 85,682 of
sum assured under 148.43 lakh policies LICs group insurance business up to 31 march
2002 Rs. 75.316 crore (provisional) providing cover to 219 lakh people.

13

INSURANCE REGULATORY &DEVELOPMENT

AUTHORITY ACT 1999 (IRDA)
It came into existence in December 1999. it is a statutory body which was framed to
provide license to private companies in insurance sector and to protect the right of policy
holders.

SCOPE

The act was passed by the parliament in December 1999.

To permit private companies to enter the insurance market, Government has

enacted Insurance Regulatory & Development Authority Act, 1999.

The act provides for the establishment of the authority1. To protect the interest of holders of insurance policies;
2. To regulate, promote and ensure orderly growth of insurance industry;
3.

For matters connected therewith or incidental thereto.

The act also sought to amend the following acts1. The insurance act 1938.
2. The life insurance corporation act, 1956.
3. The General Business (Nationalization) Act, 1972

The act applies to the whole of India including J&K stage.

The authority replaces controller under insurance act 1938.

CONSTITUTION OF IRDA

Insurance regulatory and development authority consists of the following

members.
1. A chairperson;
2. Not more than five whole-time members; and
3. Not more than four part-time members to be appointed by the central
Government.

Members should be a person of ability; integrity; and standing

14

FUNCTIONS OF
IRDA
4.

To issue certificate of registration, renew, withdraw, suspend or cancel

such registration.
2.

To protect the interests of the policyholders/insured in the matter of

insurance contract with the insurance company.

3.

To specify requisite qualifications, code of conduct and training for

insurance intermediaries and agents.

4.

To specify code of conduct for surveyors/loss assessors.

5.

To promote efficiency in the conduct of insurance business.

6.

To promote and regulate professional organizations connected with the

insurance and reinsurance business.

7.

To undertake inspection, conduct enquiries and investigations including

audit of insurers and insurance business.

8.

To control and regulate the rates, terms and conditions to be offered by the
insurer regarding general insurance business not so controlled by tariff advisory
committee.

9.

To specify and the form and manner for maintenance of books of accounts
and the statement of accounts.

10.

To regulate investment of funds by the insurance companies.

11.

To adjudicate disputes between insurers and intermediaries of insurance.

12.

To supervise the functioning of tariff advisory committee to specify the

percentage of life insurance business and general insurance business to be
undertaken in the rural of social sector.

15

COMPANY PROFILE
INTRODUCTION TO RELIANCE INSURANCE
Few men in history have made as dramatic a contribution to their countrys economic
fortunes as did the founder of Re4liance, 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 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 colossus- an 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
patronized 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 great stories of mutual respect and reciprocal
gain in the Indian markets.
exchange for their trust, substantial return on their investments. It was to be the start of
one of
16

Under Dhirubhais extraordinary vision and leadership, Reliance scripted one the greatest
growth stories in corporate history anywhere in the world, and went on the 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.

About Reliance Life Insurance

Reliance Life Insurance offers you products that fulfill your savings and protection needs.
Our aim is to emerge a transnational Life Insurance 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 rank among the top 3 private sector
financial services and banking companies. In terms of net worth. Reliance Capital has
interest in asst management and mutual funds, stock broking, life and general insurance,
proprietary investments, private equity and other activities in financial services.
Reliance Anil Dhirubhia Ambani Group also has presence in Communications,
Energy, Natural Resources, Media, Entertainment, Healthcare and Infrastructure.

17

VISION & MISSION

Vision
Empowering everyone live their dreams.
Mission
Create 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

ACHIEVEMENTS
RLEC has been one of the fast gainers in market share in new business premium amongst
the private players with an incremental market share of 4.1% on the Financial a year
2007-08 from 3.9% in April 07 to 8% in Feb 08. ( Source: IRDA)
Also continues to be amongst the fast growing Private Life Insurance Companies with a
YOY growth of 195% in new business premium as of Mar08.
Accompany that has crossed 1.7 Million policies in just 2 years of operation, post take
over of AMP Sanmar business.
Initiated Express life an Unique Over the Counter sales process for Unit Linked
Insurance Policies in the Industry.
Accomplished a large distribution ramp-up in the Industry in a short span of time by
opening 600 branches in 10 months taking the overall branch network above 740.

18

RLIC continues to be one of the two Life Insurance companies in India to be certified
ISO 9001:2000 for all the processes.
Awarded the Jamnalal Bajaj Uehit Vyavahar Puraskar 2007- Certificate of Merit in the
Financial Services category by Council for Fair Business Practices (CFBP).

BOARD OF DIREDTORS
Gautam Doshi , Director
Satya Pal Talwar , Director
Saumen Ghosh , Group President
Malay Ghosh , President
Maneesha Thakur, Chief Human Resource Officer
Pournima Gupta , Appointed Actuary
C Mohan , Chief Technolgy Officer
R Rangarajan , Chief Investment Officer
S V Sunder Krishanan , Chief Risk Officer
Saroj K Panigrtahi , Head of the Legal,Compliance And Company Secretary
Sunil Aggarwal , Chief financial Officer

VARIOUS PRODUCTS OF RELIANCE INSURANCE

INSURANCE PLANS FOR SOLUTIONS FOR INDIVIDUALS
Taking time out from your daily schedule to plan your future is a necessary task. You
could do with some help, but who can help you?
Reliance Life Insurance is here with Solutions for Individuals, a series of plans that will
help you make wise investments, protect your family, secure your childs future and even
chalk out a plan for your retirement.
So what are you waiting for? In vest in one of Reliance Solutions for Individuals and
pave the way for a worry-free life!

19

Plans
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.
Saving & Investment Plans
Reliance Savings & Investment Plans help you to set aside some money to achieve
specific goals in life, which means that you can enjoy life and provide for
your familys daily needs
Retirement plans
Invest today in Reliance Retirement Plans and save money to enjoy life even after
retirement. You will never have to depend on another person or make any compromises to
maintain your current lifestyle
Child Plans
Save systematically and secure your childs future needs by investing in Reliance Child
Plans. You can always be there for your child when he or she needs you
Savings & Investment Plans
In 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.

20

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 made-we are here to fulfill
them.
Savings & Investment Plan
Reliance Super Invest Assure is a complete plan which addresses your vital needs like
Flexibility, Security, Investment Return and Financial Planning. With all its key benefits,
it is here to ensure that there will always be more than you can ask for!
Total Investment Plan I Insurance
Reliance TIPS Series I- insurance is a UNIT Linked Investment + Insurance Plan that
helps you meet all your financial needs, without the complexity of managing multiple
products
Reliance Wealth + Health Plan
Invest in the Reliance Wealth Health Plan and balance your health needs and wealth
needs, without compromising on either health or wealth
Reliance Automatic Investment Plan
The Reliance Automatic Investment Plan is an enhanced unit linked plan that allows you
to choose the right investment mix to reap maximum benefits. It also provides you with
enhanced Life Cover

21

Reliance Money Guarantee Plan

To reap the benefits of a rising market and to protect yourself form any market decline,
invest in the unit linked Reliance Money Guarantee plan that gives you the perfect
balance between Protection and Savings
Reliance Cash Flow Plan
Invest in the Reliance Cash Flow Plan and reap the dual benefits of a life insurance plan
an easy liquidity through lump sum cash, which means you can get a percentage of the
Sum Assured at periodic intervals
Reliance Market Return Plan
The Reliance Market Return Plan gives you insurance protection and allows you to
benefit from investment growth. It works through your life and meets the changi8ng
requirements you may have from time to time
Reliance Endowment Plan
The Reliance Endowment Plan gives you financial independence by allowing you to
decide the amount of Sum Assured based on your current financial position and expected
future expenses
Reliance Special Endowment Plan
Imagine an endowment plan that protects you for a certain period even after you have
receive your lump sum that is exactly what the Reliance Special Endowment Plan
offers you with other added benefits

22

Reliance Whole Life Plan

Give your family al lifetime of timely financial support by investing in the Reliance
Whole Life Plan. This will help you enjoy your life to the fullest
Reliance Golden Years Plan
The Reliance Golden Years Plan helps you save systematically and generate the muchneeded corpus to help you enjoy life after retirement
Reliance Golden Years Plan Value
Realise all your dreams of playing golf, or going for a world tour after retirement by
investing in the Reliance Golden Years Plan Value, which helps you generate the amount
you will need for the future
Reliance Golden Years Plan Plus
Invest in the special Reliance Golden Years Plan Plus that not only helps you build the
corpus you need after, but also collects a basic minimum amount in case something were
to happen before you realize your dreams
Reliance Connect 2Life Plan
The Reliance Connect 2 Life Plan gives you the option to upgrade your life cover to keep
pace with your changing lifestyle. As your income grows, your family will have sufficient
cover
Employee Protection Solutions
Have you always wanted to give your employees total cover from any accidents,
disabilities or untimely deaths? Invest in Reliance Employee Protection Solutions today
and show your employees that you care
23

RELIANCE SUPER INVESTASSURE PLAN

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 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 InvestAssure
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.

Option to pay Top-up premium(s)

Liquidity in the form of partial withdrawals.

A host of optional benefits to enhance protection cover.

Disclaimer

For more details on risk factors, terms and conditions please read sales brochure
carefully before concluding a sale

24

Insurance is the subject matter of the solicitation. Reliance Life Insurance

Company Limited (Regd. No. 121)

UIN for Reliance Super InvestAssure Plan:121L031V01 , Reliance Major

Surgical Benefit Rider: 121B011V01, Reliance Critical Conditions (25) Rider:
121B01V01, Reliance Term Life Insurance Benefit Rider: 121C009V01, Reliance
Accidental Death & Total & Permanent Disablement Rider:121C002V01

Reliance Money Guarantee Plan

Unbeatable protection For your investments

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT

PORTEFOLIO IS BORNE BY THE POLICYHILDER.

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 plan which helps you
reap all the benefits of a rising market simultaneously protection you from the
downside risk of the market.
Key Features
Capital Guarantee: the sum off 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
25

BIRLA SUNLIFE
About Birla Sunlife Insurance Company Limited
Birla Sun Life Insurance pioneered the unique unit linked life insurance
solutions in India. Within 4 years of its launch , BSLI has cemented its position as a
leading player in the private life insurance industry. There has been focus on Investment
Linked Insurance Products, supported with protects to maintain leadership in product
innovation. Multi Distribution Channels- Direct Sales Force, Alternate Channels and
Group offering convenient channels of purchase to customers. Web- enabled IT systems
for superior customer services. First to have issued policies over the Internet. Strong
fundamentals based on the Aditya Birla groups local insight and Sun Life Financialss
global expertise.
VISION AND MISSION
Vision
To create long term value along with market leadership
Mission
To help people mitigate risks of life, accident, health and money at all stages and under
all circumstances.
Enhance the financial future of our customers, including enterprises.
Values
Integrity
Commitment
Passion
Seamlessness
Speed

26

Board of Directors
Mr. Kumar M. Birla
Mr. Donald A. Stewart
Mr. Bishwanath N. Puranmalka
Mr. Ajay Srinivasan
Investment Committee
Mr. B.N.Puranmalka
Mr.Eugene I.Undrigan
Mr. Fabien Jeudy
Mr. Keerti Gupta
Mr. Vikram Kotak
Mr. Vikram Medmi
Audit Committee
Mr. Bishwanath N. Puranmalka
Mr. Ajay Srinivasan
Mr. Stephan Rajotte
Mr. Gian P. Gupta
Mr.Venkatesh S. Mysore
Management Team
Mr. Vikram Mehmi
President & chief Executive Officer
Mr. Mayank Bathwal
Chief Financial Officer
Mr. Chander Chellani
Chief Distribution Officer
Mr. Amitabh Verma
27

Chief Operating Officer

Mr. Vikram Kotak
Chief Investment Officer
Mr.Fabien Jeudy
Chief Actuarial Officer & Appointed Actuary

28

VARIOUS PRODUCTS OF BIRLA SUNLIFE

Birla Sun Life Insurance Gold Plus
In this policy the investment risk in investment portfolio is born by the policy holder.
Highlights
An opportunity to grow your investment for the medium term.
Policy term :8 yrs.
Paying period : 3yrs.
The policyholder has an option to reduce the annualized policy premium in the 2 nd and 3rd
year subject to a minimum annualized premium of Rs. 10,000 per year.
Top Up premium Minimum Rs. 5000
Liquidity through withdrawals and surrender
Withdrawals after 3 policy years, Min Rs. 5000, two partial withdrawals are free in a
year.
Surrender can be surrendered anytime during the policy term but will be paid after there
policy years ( if surrendered in first 3 policy yrs). Surrender charge is zero after 3rd yr.
Seven fund options Introducing 100% equity fund option Maximiser You can switch
between the fund options or change the allocation into the various funds anytime during
the tenure of the policy.
Entry Age : 18 yrs to 70 yrs
Minimum Premium : Rs 10,000.
Minimum Sum Assured :5 x annual premium
Maximum Sum Assusred (based on the maximum multiple allowed age-wise)

29

Gold Plus Plan

This plan is a unit linked, non- participating, insurance plan. A simple, hassle free plan it
helps you strike the right proportion between protection and savings. Our plan offers you
the convenience of paying for a limited period of 3 years with the flexibility to reduce
premium (subject to minimum of Rs. 10000) from the second policy year onwards
without reduction in sum Assured. The plan, also offers you the benefits of top-up besides
providing liquidity in the form of partial withdrawals and surrender benefits.
Our plan has seven fund options, which empowers you with the flexibility of allocating
premiums in varying proportions into different fund options and achieves superior
investment returns.
Eligibility
Entry Age : 18 yrs to 70 yrs.
Minimum Premium: Rs. 10,000.
Minimum Sum Assured : 5 x annual premium.
Before you continue reading
All Unit Linked life insurance plans are different from Traditional insurance plans and are
subject to different risk factors. The name of the investment funds and that of this plan do
not in any way indicate the quality of the plan or future returns.
In this plan, the investment risk in the investment funds chosen by you is borne by you.
Investment funds are subject to investment risks and unit prices may go up or down
reflecting the market value of the underlying assets. Past performance is no guarantee of
future results.
Premiums
You can choose your desired premium and the sum Assured.
Premium Payment Frequency
You can pay the policy premium monthly ( through ECS only), quarterly, half-yearly or
annually.

30

Premium Paying Mode

You can pay your policy premium by cash (up to Rs 50,000), cheque, credit card , salary
deduction, ECS and direct debit.
Top- up Premium
You can the fund whenever you have additional savings prior to the maturity of the
policy.
The minimum top up premium is Rs. 5,000.
The sum assured in the plan will increase if the top up amount exceeds 25% of the
policy premium paid till date. The additional sum assured will be 125% of the excees
premium and is subject to the administrative and underwriting rules of the company.

BIRLA SUN LIFE INSURANCE ACOMING TOGETHER OF

VALUES

BIRLA SUN LIFE INSURANCE: A COMING TOGETHER OF VALUES Birla sin

life insurance company limited is a joint venture between the Aditya Birla Group, one of
the largest business houses in India and Sun Life Financial Inc., a leading international
financial services organization. The local knowledge of the Aditya Birla Group combined
with the expertise of Sun Life Financial Inc., offers a formidable protection for your
future.
The Aditya Birla

Group has a turnover close to Rs. 49,440 crores with a market

capitalization of Rs. 82,400 crores (as on 31st March 2007). It has over 88000 employees
across all its units worldwide. It is led by its Chairman Mr. Kumar Mangalam Birla.
Some of the key organizations within the group are Hindalco, Grasim, Aditya Birla Nuvo
etc.
Sun Life Financial Inc. and its partners today have operations in key markets worldwide,
including Canada, the United States, the United Kingdom, Home Kong, the Philippines,
Japan, Indonesia, India, China and Bermuda, Sun Life Financial Inc. had assets under

31

management of over US$374.61 billion, as on 31 st December 2006. Sun Life Financial

Inc. is a leading performer in the life insurance market in Canada.
Birla Sun Life Insurance (BSNL) in its 6 successful years of operations has contributed
significantly to the growth and development of the life insurance industry in India.
It Pioncered the launch of Unit Linked Life Insurance plans amongst the private players
in India. It was the first player in the industry to sell its policies through the
Bancassurance route and through the internet. It was the first private sector player to
introduce a pure Term plan in the Indian market. This was supported by sales practices,
which brought a degree of transparency that was entirely new to the market. The process
of getting sales illustrations signed by customers, offering a free look period on all
policies, which are now industry standards were introduced by BSLI. Being a customer
centric company, BSLI has covered more than a million lives since inception and its
customer base is spread across more than 1000 towns and cities in India. All this has
assisted the company in cementing its place amongst the leaders in the industry in terms
of new business premium income. The company has a capital base of Rs 672 crores as on
31st march 2007.

32

INDIVIDUAL LIFE
Protection

Birla Sun Life Insurance Term Plan

Birla Sun Life Insurance Premium Back Term Plan
Saving
Birla Sun Life Insurance Platinum Plus
Birla Sun Life Insurance Gold-Plus II
Birla Sun Life Insurance Saral Jeevan Plan
Birla Sun Life Insurance Supreme Life
Birla Sun Life Insurance Dream Plan
Birla sun Life Insurance Classic Life Premium
Birla Sun Life Insurance Simply Life
Birla Sun Life Insurance Prime Life Premier
Birla Sun Life Insurance Prime Life
Birla Sun Life Insurance Life companion
Birla Sin Life Insurance Flexi Cash Flow
Birla Sun Life Insurance Flexi Save Plus
Birla Sun Life Insurance Flexi Life Line
Birla Sun Life Insurance Single Premium Bond

33

Retirement
Birla Sun Life Insurance Flexi Secure Life Retirement Plan II
Birla Sun Life Insurance Freedom 58
Children
Birla Sun Life Insurance Childrens Dream Plan
Rural
Birla Sun Life Insurance Bima Suraksha Super
Birla Sun Life Insurance Bima Dhan Sanchay
Birla Sun Life Insurance Bima Kavach Yojana

Riders
Birla Sun Life Insurance Accidental Death Rider
Birla Sun Life Insurance Accidental Death and Dismemberment Rider
Birla Sun life Insurance Term Rider
Birla Sun Life Insurance Critical Illness Rider
Birla Sun Life Insurance Waiver of Premium
Birla Sun Life Insurance Critical Illness Plus Rider
Birla Sun Life Insurance Critical Illness Woman Rider

34

LITERATURE REVIEW
Carrow Kenneth A. and Heron R. Capital market reactions to the passage of the
Financial Services Modernization Act of 1999. The Quarterly Review of Economics and
Finance 42 (2002): 465-485.
The authors investigate how the passage of the Financial Services Modernization Act of
1999 (FMA) affected stock prices of banks, thrifts, finance companies and insurance
companies. The study looks at stock excess returns across sectors and company size. The
idea is that the passage of the FMA opens doors for potential mergers and consolidations
across banking, financial and insurance sectors, translating into abnormal positive returns
for businesses that are the likely candidate for mergers and consolidation. The results of
the study suggest that the largest returns to the FMA passage were realized by large
investment banks and insurance companies. The stock prices of banks, both small and
large, seemed to be unaffected by the new legislation while thrifts, finance companies and
foreign banks lost value.
Carrow Kenneth A. Citicorp-Travelers Group merger: Challenging barriers between
banking and insurance. Journal of Banking and Finance 25 (2001): 1553-1571.
This paper is conceptually similar to the one cited above, in that the author investigates
whether the announcement of a merger between Citicorp and Travelers abnormally
impacted stock prices of financial and insurance companies. Analysis of abnormal returns
surrounding the merger show that life insurance companies and large banks experienced
significant stock price increases, while the returns of stocks of smaller banks, health
insurers, and property/casualty insurers remain relatively unchanged.
Estrella, Arturo. Mixing and matching: Prospective financial sector mergers and
market valuation, Journal of Banking and Finance 25 (2001): 2367-2392.
This paper analyses which types of mergers are likely to be most productive for banks
and other financial firms in the United States. The author acknowledges that the extent to
which different business activities are fundamentally distinct induces a tradeoff between
diversification gains and loss of efficiency. The research considers life insurance,
property/casualty insurance, securities, and commercial firms as potential matches for
firms and concludes that potential diversification gains arise from almost all
35

combinations involving banking and insurance. The paper stands out because it shows,
unlike other earlier research, that property and casualty insurance companies offer larger
diversification gains to banks than life insurance companies.
Johnston, Jarrod and Madura J. Valuing the potential transformation of banks into
financial service conglomerates: Evidence from the Citigroup merger The Financial
review 35 (2000): 17-36.
The authors first summarize previous literature that examined motives for combining
bank and other financial services. Diversification benefits and product complementarities
(i.e. mortgage and mortgage insurance, auto financing and auto insurance) seem to be the
prime motives. However, some earlier research also suggests that there are few linkages
between bank services ands underwriting services in terms of customers, outlets, or other
characteristics that generate efficiencies. Given the sources of potential gains, it appears
that life insurance companies with their limited underwriting risk and wide variety of
other products offered to individual customers would be more attractive targets for banks
than other types of insurance companies.
Based on these observations, the authors propose to test whether commercial banks,
insurance companies, and brokerage firms

were favorably affected by the

Citigroup/Travelers merger for impending consolidation of financial services firms. They

measure the valuation effects resulting from the merger announcement among those
commercial banks and financial services firms most likely to be affected and conclude
that commercial banks, insurance companies, and brokerage firms have all experienced
positive and significant valuation effects upon the announcement of the Citigroup merger.
However, the authors find that the valuation effects are more favorable for brokerage
firms than for commercial banks and for insurance companies.
Finally, the authors perform a cross-sectional analysis which concludes that the largest
banks and the largest brokerage firms experience more favorable valuation than the
smaller banks or smaller brokerage firms. Size does not seem to be significant for
insurance companies
Industry Publications

36

Armstrong, Ed and Buse, P. (1996). Youve got the green light, whats it worth? ABA
Banking Journal, Vol. 88, Sept., 13-18.
The article projects that banks would add 5-10 percent to their after tax profits if they
aggressively pursue their insurance opportunity." The author develops a pro forma
statement for banks selling 12 different insurance items.
Boros, Joan E. (2002). Are Convergence Products Happening? National Underwriter,
Life & Health/Financial Services Ed., May 27, 2002.
The author states that convergence depends on its definition. She offers very useful
definitions for convergence: 1) Merger of banks and insurers, heretofore independent,
into a financial supermarket with endless cross-selling potential, and 2) A combination of
insurance and capital markets products moving into a union and uniformity, or separate
markets performing the same functions. This could also be labeled as securitization of
insurance risk and or insurancization of financial risk.
Crystal, Mary (1997). That was then, this is tomorrow. Bank Marketing, Vol. 30, 1,
Dec.97/Jan.98, 28-52.
This panel discussion on bank marketing suggests more direct interaction with customers
by direct mail or personal contact. Doing it pro-actively and by alternative methods: call
centers, PC-banking, internet banking and supermarket banking. Using branding and
other retail marketing skills. Bankers have tried to cut down on personal contact and may
have alienated their customers.
Gjertsen, Lee Ann (2002). Insurance Agents Thrift Seeks OK to Widen Reach. The
American Banker, May 13, 2002.
Insurance agents of New Jersey, Connecticut and Massachusetts founded an association
as Independent Insurance Agents and Brokers and have applied for a charter for an
association savings bank. The bank products are to be sold by the independent insurance
agents that own their own agencies. The bank is to be named InsurBanc.

37

OBJECTIVES OF THE STUDY

The main objective of Preparing this project Report are :
1) To know about the comparative study of Reliance Insurance and Birla Sun
Life Insurance.
2) To know about the different plans available with the company.
3) To know about the customer awareness regarding the company.
4) To know about the fastest claim providing company.

38

RESEARCH METHODOLOGY
Introduction to Market Research
Market Research has become a great tool for the companies to get the feed
back and formulate strategies accordingly. In todays business scenario, consumer is
the king of market. Companies are eager to know what consumers perceive about
various products for the perfect selection of target market.
Marketing Research specifies the information required to address these issue;
designs the method for collecting information; manages and implements the data
collection process; analyzes the results and communicates the findings and their
implications.
The Research Methodology Used
Every project work requires research. Successful completion of any project
and getting the genuine results form that the depends upon the research method used
by the researcher. The whole research process used by me is as follows :-

Evaluation
of
secondary
Data

Research
and Design

Problem
Formulation

39

Research and Design

The method adopted for the research was experience survey i.e. the survey of people
who had the practical experience of life insurance. In this Exploratory Research is used to
define problem and hypothesis are developed to be tested later. Testing uses descriptive
or
Experimental design that may solve the problems developed in exploratory research.
All the marketing research projects of any significant scope must begin with
exploratory research. This preliminary phase is absolutely essential in order to obtain
a proper definition of the problem at hand. The investigator establishes exploratory
research design primarily through two approaches :

1) Examine Existing Literature.

2) Questioning people with particular expertise in the area.
Sample Design and Size
The sample chosen for the research was through some part of HARYANA, as
these regions have the maximum number of insured persons and agents.
Data collection was done by using questionnaire method. In the questionnaire
opened questions as well as close questions were used.

Analysis and Interpretation of Data

The data after collection has to be processed and analysed in accordance with
the outline laid down for the purpose at the time of developing the research plan.
Technically speaking process implies editing, coding, classification and tabulation of
collected data so that they are amenable to analysis.
The term analysis is refers to the computation of certain measures along with
searching for patterns of relationship that exist data groups.
40

Different processing Operations Are :

Editing : Editing of data is a process of examining the collected raw data to
detect errors and omissions and to correct these. Editing is done to assure that the data
are accurate, consistent with facts etc.
Coding : Coding refers to the process of assigning numbers or other symbols to
answer so that responses can be put into a limited number of categories or classes.
Classification : Classification of data is the process of arranging data in group or
classes on the basis of common characteristics.
Tabulation : Tabulation is the process of orderly arrangement of data in rows and
columns.
Steps in selecting a Sample Design :
i.

Type of Universe: The first step in developing any sample design is to clearly
define the Universe to be studied. The universe can be finite or infinite. In
finite universe the number of items is certain but in finite universe we cannot
have any idea the total number of items.

ii.

Sample Unit : A sampling unit may be geographical one such as state, district,
village etc. or a construction unit such as house, flat etc. or it may be an
individual.

iii.

Source List : It is also known as Sampling Frame from which sample is

drawn. In contains the names of all items of universe.

iv.

Size of Sample : This refers to the number of items to be selected from the
universe to constitute a sample. The size of sample should neither be
excessively large nor too small. It should be optimum.

v.

Budgetary Constraints : Cost consideration from practical point of view

have a major impact upon decision relating to not only the size of the sample
but also to the type of sample.

41

DATA COLLECTION
Sources of Data
In the survey, the personal interview techniques is being used to get the respondents
views for collecting the data. There are two kinds of sources of data.

1)

PRIMARY SOURCE

2)

SECONDARY SOURCE

For the preparation of project report both primary as well as secondary sources
are being used to secure the relevant data.
A part from personal interview method, Observation Method is also used to get
the primary data or the basic roots of the research topic. For collecting the primary data I
have surveyed the different persons engaged in insurance.
Data Collection Techniques Used
The data collection techniques used in the research was Questioning Techniques, which is
mostly used in researchers because of its ease to analysis and interpretation of the data
collected by this technique. This technique gives the data in a standard format, which is
easy to analyze.

42

LIMITATIONS OF THE STUDY

How so ever impeccable a thing may see to be there always dwell some
possibilities of failure and incompleteness. The result of this work also subject to some of
limitations are as follows : Due to shortage of time the studies conducted on very small i.e. based upon
material and information provided by the company.
Some of the officers were too busy to give a sincere response to
investigation and hence their response may not relate to real picture.
The findings of the research are limited to a particular area & can not be
applied to all places.
As the human behavior is not constant so the results collected through
questionnaire may or may not apply to future period of time.
Due to biasness of data it is difficult to get the accurate information from
the respondents.
Because of inexperience of researcher it is difficult to collection the data.

43

SWOT ANALYSIS
(Reliance Insurance and Birla Sun Life)
Strength :
1. Additional benefits like family income benefit.
2. Low premium.
3. Four times risk cover in one plan.
4. Tax Benefit.
5. Advantages for women in premium calculation.
6. Reliance Insurance is going to introduce new plans and it is also competing in the
Market with No.2 position in private insurance sector.

Weakness :
1.

Credibility.

2.

Low Bonus Rate.

3.

Lack of Advertisement of Birla Sun life.

4.

Reliance Insurance is introduced to market after Birla Sun life hence its
share in
Market is less than the Birla Sun life.

Opportunities:
1.

Large Global Market.

2.

Quicker response to customer need.

3.

Potential to become a sourcing centre.

Threats:
1.
2.
3.

Touch competition.
Lack of awareness.
Expensive.

44

DATA ANALYSIS & INTERPRETATIONS

Occupation
Table 1.1
Respondent category

% age of person

SERVICEMAN

25

BUSINESSMAN

30

SHOP-KEEPER

25

HOUSE-WIFE

15

OTHER

5
TOTAL

100

(Source : Questionnaire)

5%
15%

25%
SERVICEMAN
BUSINESSMAN
SHOP-KEEPER
HOUSE-WIFE
OTHER

25%
30%

45

Figureure No. : 1.1

Interpretation
The graph shows that the maximum number of persons are serviceman,
shopkeeper, businessman, housewifes and other respectively.

46

PEOPLE PREFRENCE FOR SAVING TOOL

Table 1.2
Saving instrument

%age of person

Bank

45%

Insurance

25%

P.P.F.

8%

Post office

14%

Other

8%
TOTAL

100

(source : Questionnaire)

Figureure 1.2
Interpretation
This table shows that people mainly prefer banking for investment, then post
office, then insurance, and lastly P.P.F. and other option.

47

PEOPLE INTERESTED IN INVESTING IN

INSURANCE SECTOR
Table :1.3
Interested in Insurance sector

%age of person

Interested

82%

Uninterested

18%
TOTAL

100

(source : Questionnaire)

Figureure No. 1.3

Interpretation
The above diagram show that only 18% people are interested in insurance sector
and remaining 82% are uninterested.

48

AWARENESS OF THE RELIANCE INSURANCE & BIRLA SUNLIFE

INSURANCE
Table 1.4
Insurance Company

%age of person

RELIANCE INSURANCE

52%

BIRLA SUNLIFE

48%

(source : Questionnaire)

Figureure No. 1.4

Interpretation
The above diagram shows that 52% are aware about Reliance Insurance
and 48% people are aware about Birla Sun Life in the area of Yamuna Nagar district.

49

POLICYHOLDERS OF DIFFERENT COMPANIES

Table 1.5
COMPANIES

% age of
respondents
32%

Reliance Insurance
Birla Sunlife

28%

Other

40%
Total

100

(source : Questionnaire)

Figureure no.1.5
Interpretation
The above diagram shows that 32% people have Reliance Insurance, 28%
have Birla Sunlife, 41% have other insurer companies policy.

50

KNOWLEDGE ABOUT I.R.D.A.

Table 1.6
OPINION

% age of respondents

YES

38%

NO

62%

(source : Questionnaire)

Figure No. 1.6

Interpretation
The above diagram shows that only 38% people know about Insurance
Regulatory development of India and 62% do not know it.

51

KNOWLEDGE ABOUT RELIANCE AND BIRLA

ULIP PLANS
Table 1.6
OPINION

% age of respondents

YES

22%

NO

78%

(source : Questionnaire)

Figure No. 1.7

Interpretation
The above diagram shows that only 78% people knowledge about ULIP plans
of Birla and Reliance Insurance company and 22% people dont have knowledge about
ULIP plans of Birla and Reliance Insurance company.

52

ULIP PLANS OF RELIANCE INSURANCE CO.

Table 1.8
Plans
Saving & Investment

% age of
respondents
20%

Retirement Plan

30%

Child Plan

20%

Money guarantee

30%
Total

100

(source : Questionnaire)

Figure No. 1.8

Interpretation
The above diagram shows that 30% of respondents have knowledge about
retirement and money guarantee plans of Reliance Insurance and 20% of respondents
have knowledge about saving & investment and child plan plans of Reliance Insurance.

53

ULIP PLANS OF BIRLA SUNLIFE INSURANCE

Table 1.9
Plans

%age of
respondents
18%

Gold Plus
Retirement Plan

32%

Child Plan

28%

Dream Plan

22%
Total

100

(source : Questionnaire)

Figureure No. 1.9

Interpretation
The above diagram shows that 32% of respondents have knowledge about
retirement plan of Birla Sun life, 28% of respondents have knowledge about child plan of
Birla Sunlife, 22% of respondents have knowledge about dream plan of Birla Sunlife and
18% of respondents have knowledge about Gold plus of Birla Sunlife.

54

MAXIMUM RETURN POLICIES

Table 1.11
Insurance Company

%age of respondents

RELIANCE INSURANCE

55%

BIRLA SUNLIFE

45%

(source : Questionnaire)

Figure No. 1.11

Interpretation
This table and diagram shows that 55% respondents says that RELIANCE
INSURANCE is providing maximum returns on their policy than the BIRLA SUNLIFE
INSURANCE.

55

MAXIMUM TAX BENEFITS

Table 1.12
Insurance Company

%age of respondents

RELIANCE INSURANCE

58%

BIRLA SUNLIFE

42%

(Source : Questionnaire)

Figure No. 1.12

Interpretation
This table and diagram shows that 58% respondent says that Reliance
Insurance is providing maximum tax benefits on their policy than the Birla Sun Life.

56

FASTEST CLAIM PROCESSING

Table 1.13
Insurance Company

%age of respondents

RELIANCE INSURANCE

60%

BIRLA SUNLIFE

40%

(Source : Questionnaire)

Figure No. 1.13

Interpretation
This table and diagram shows that 60% respondents say that Reliance
Insurance is providing maximum returns on their policy than the Birla Sun Life.

57

SATISFICATION WITH SERVICES PROVIDED

Table 1.15
OPINION

%age of respondents

RELIANCE LIFE INSURANCE

89%

BIRLA SUN LIFE

11%

(Source : Questionnaire)

Figure No. 1.14

Interpretation
The above diagram shows that only 89% people are satisfied with the
services provided by Reliance life insurance companies and 11% people are satisified
with the services provided by birla sunlife insurance companies.

58

FINDINGS

Maximum number of persons are serviceman, shopkeeper, businessman,

housewifes and other respectively.

People mainly prefer banking for investment, then post office, then insurance,
and lastly p.p.f and other option.

Only 18% people are interested in insurance sector and remaining 82% are
uninterested.

Reliance Insurance captures the market share of 24%, Birla Sun Life 17% and
the remaining share is captured by the other insurance companies.

52% are aware about Reliance Insurance and 48% people are aware about
Birla Sun Life in the area of Yamuna Nagar district.

55% are satisfied with the Reliance Insurance, 35% are satisfied with the Birla
Sunlife and remaining 10% are satisified with the other insurance companies.

60% people says that Reliance Insurance is providing good services and
according to 40% people Birla Sunlife is providing the good services.

38% people know about Insurance Regulatory development of India and 62%
do not know it.

34% know about the Reliance Insurance and remaining do not know about it.

40% respondents are interested Reliance Insurance remaining do not know

about it.

55% respondents says that Reliance Insurance is providing maximum returns

on their policy than the Birla Sunlife.

58% respondents says that Reliance Insurance is providing maximum tax

benefits on their policy than the Birla Sunlife.

60% respondents says that Reliance Insurance is providing maximum returns

on their policy than the Birla Sunlife.

59

SUGGESTIONS
Company should emphasis on insurance plan advertisement, because at present
company main focus on conventional product advertisement.
Company also segment for small income people. Because company mainly plan
for middle and high income people group. If company enters in this segment then
company can capture a large part of rural market.
Company should also change the commission structure of F.C., because in initial
year commission is very high as compare to remaining year. So F.C. does not
focus on remaining year and many policies lapsed.
More and more advisor need to made so that the market can be covered at large.
During my survey I contact to people like doctors lawyers, bank manager, and
high profile people. But according to my observation these people are not suitable
because they are not interested in such kind of work. Therefore people doing
clerical jobs, graduates unemployed people, who are in low income group should
be taken into consideration.

60

CONCLUSION
On the basis of above analysis and interpretation, conclusion is that insurance
business is mushrooming in the country. Today there are no of insurance companies
with

different added advantage. Reliance Insurance is leading company in the

insurance business in India.

Reliance Life Insurance Co. leads the private Insurance Co. 74% people
know about the co. but since 2007, it has made the total cases of Rs. 658 crore
because of the high expenditure in Advertisement .
On the other hand Birla sunlife Insurance Co. Ltd. Is good quality services
but the knowledge of people about co. is less only 36% know about the Birla Sunlife
Insurance Co. Ltd. The reason behind it is not regular add and not the more
relationship with the people but now it is one of the fastest.

61

BIBLIOGRAPHY
Books
C.R. Kothari, Research Methodology
Broachers of Reliance Life Insurance and Birla Sunlife Insurance.

Magazines
Indian Outlook
India Today
Insurance Sector Journals

Website
www.relianceinsurancae.com
www.birlasunlife.com
www.irda.org

62

QUESTIONNAIRE
Name :
Age :
Sex

Address :
Contact No. :
Q.1

Q.2

Q.3

What is your occupation ?

Serviceman

Shop-Keeper

Businessman
Other

House- Wife

What do you prefer for saving tool ?

Bank

Post office

P.P.F.
Other

Insurance

Are you interested in investing in insurance section ?

Interested

Q.4

Uninterested

Do you have Awareness of the reliance insurance and Birla Sunlife insurance ?
Reliance Insurance

Q.5

Birla Sunlife

From which company do you have policies ?

Reliance Insurance

Birla Sunlife

Others

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Q.6

Do you have knowledge about IRDA ?

Yes

No

Q.7 Do you have knowledge about Reliance and Birla ULIP Plans ?
Yes

No

Q.8 Which ULIP plan of Reliance Insurance you have ?

Saving & Investment

Retirement plan

Child plan

Money guarantee

Q.9 Which ULIP plan of Birla Sunlife Insurance you have ?

Gold Plus

Retirement plan

Child plan

Dream Plan

Q.10 How you will rate performance of Reliance Life Insurance ?

Excellent 5

Poor

Q.11 How you will rate performance of Birla Sunlife insurance ?

Excellent 5

Poor

Q.12 Which company gives you maximum return ?

Reliance Insurance

Birla Sunlife

Q.13 which companys policies gives you the maximum tax benefits ?
Reliance Insurance

Birla Sunlife

Q.14 What is the fastest claim processing ?

Reliance Insurance

Birla Sunlife

Q.15 Are you satisfied with the services provided by the Insurance Company ?
Yes

No

64