A SUMMAR PROJECT REPORT ON

A Collective study on retail marketing and their products in

Reliance Life Insurance Co. Ltd.

IN PARTIAL FULFILMENT OF REQUIREMENT OF DEGREE OF

BACHLOR IN BUSINESS ADMINISTRATION
BBA 2012-15

SUBMITTED TO: UNIVERSITY OF RAJSTHAN, JAIPUR

SUPERVISD BY:
Mrs. Ankita Dadhich
Asst. Professor

SUBMITTED BY:
Neha Joshi
BBA IVth SEM.

SHEKHAWATI INSTITUTE OF MANAGEMENT,

JAIPUR ROAD, SIKAR (RAJ.)
1

STUDENT DECLARATION
I, NEHA JOSHI Student of BBA second Year Session 2014-2015, declare that the
present Project work entitled A Collective study on retail marketing and their
products in Reliance Life Insurance Co. Ltd. is an original work. I anywhere else
for the award of any Degree/ Diploma/ Certificate or for any Prize have not submitted
this project report. All the data given in the report is true to the best of my knowledge
and all references whether of any person or organization can be crosschecked

NEHA JOSHI

PREFACE
The Summer Training of a management student plays an important role to develop
him as a well, groomed professional. It is a golden opportunity for him to give the
theoretical concepts a practical shape in the field of application. It gives him an idea
of dynamic and versatile professional world as well as an exposure to the intricacies
and complexities of corporate world.
This project has been prepared in the fulfillment of the degree of Bachelor of
Business Administration (University Of Rajasthan, Jaipur). I have tried my best to
present the best for my project title A Collective study on retail marketing and
their products in Reliance Life Insurance Co. Ltd. under the guidance of Mrs.
Ankita Dadhich faculty of Shekhawati Institute Of Management, SIKAR

NEHA JOSHI

ACKNOWLEDGEMENT
I express my thanks to my project guide, Mrs. Ankita Dadhich, Shekhawati
Institute of management, SIKAR I take this opportunity to thank all those who have
helped and inspired me during the course of time of this project without which the
successful completion of the project would not have been possible.
I have been benefited greatly by knowing various concepts as I underwent into
various discussions with the professionals, high officials and other executives at
Reliance Life Insurance Co. Ltd..
I am sincerely thankful to other top management under whose leadership and
motivation I found a really wonderful working environment. Along with them, I would
like to thank other working staffs and colleagues who helped me out whenever I
needed.

NEHA JOSHI

Executive Summary
The purpose of recruitment is to the attract the quantity & quality of personnel
needed.
It is done in order to fill the gap between current personal &forecasted Personnel
needs. Recruitment ought to be done from external supply but The gap can be filled
through internal means (transfer, promotion. Development Or improved utilization).
In order to decide the recruitment policy procedures plans. etc human resource
Planning is needed. Recruitment involves job analysis searching for potential
Candidates, creating a pool of such candidates and convincing these candidates To
come over for an interview.
After this starts the process of selection with the pool of candidates, the next step is
to select the best candidates for the job. This means whittling down the Applicant
pool by using the screening tools such as tests.
Assessment center, and background and reference checks.

CONTENTS
Chapter
No.

INDEX

Page No.

1.

Introduction

01-16

2.

Company Profile

17-52

3.

Objective Of Study

53-54

4.

Review Of Literature

55-66

5.

Research Methodology

67-73

6.

Data Analysis & Interpretation

74-86

7.

Observation & finding

87-89

SOWT Analysis

90-92

8.

Conclusion

93-94

Suggestion

95-96

9.

ANNEXURE

97-100

10.

Bibliography

101-102

CHAPTER 1

Introduction to Insurance Sector:

INSURANCE INDUSTRY
History of Life Insurance
The biggest challenge facing the insurance industry is to differentiate themselves by
making attractive and customized products which suit the specific requirements of
the prospective policy buyers. This can be done to a great extent by giving a totally
tailored policy - according to a customer's requirement.
The business of life insurance in India in its existing form started in India in the year
1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed
by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore
from the Government of India.
The market research report Indian Insurance Industry Forecast (2011-2013) an indepth analysis of the present and future of the Indian Insurance Industry. The market
research report looks in to the details as well as gives an overview of the Indian
insurance market with focus on the performance of the key players.
With the initiation of the deregulation in the Indian insurance market, the monopoly
of big public sector companies in life insurance as well as general (non-life
insurance) market has been broken. New private players have entered the market
and with their innovative approaches and better use of distribution channels and
technology, they are eating in to the shares of established public sector companies
in Indian Insurance Market.

10

Since the deregulations have been put in to place, the market share of LIC has
come down to 71.4% in life insurance market while the private players have
captured around 17% market in the general insurance segment. Having said that,
public sector insurance companies such as LIC and New India Assurance are
registered impressive double-digit growths, which reflects on the overall health of the
Indian insurance sector.
This report includes the key private players in the insurance market such as ICICI
Prudential, Bajaj Allianz, Birla Sunlife, Reliance Life Insurance, ICICI Lombard and
TATA AIG. It also includes the leading competitors in the life insurance and general
insurance segments along with their market shares.

Insurance Players
Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:
Life Insurers
Life Insurance Corporation of India (LIC)
General Insurers
General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National
Reinsures)
GIC had four subsidiary companies, namely (with effect from Dec' 2000, these
subsidiaries have been de-linked from the parent company and made as
independent insurance companies.

The Oriental Insurance Company Limited

The New India Assurance Company Limited,

National Insurance Company Limited

United India Insurance Company Limited.

INSURANCE BUSINESS
Insurance business is divided into classes:
1. Life Insurance 2) Fire Insurance 3) Marine Insurance and 4) Miscellaneous
Insurance.
Life Insurers transact life insurance business; General Insurers transact the rest.
No composites are permitted as per law.
11

LEGISLATION (as on 1.4.2000)

Insurance is a federal subject in India. The primary legislation that deals with
insurance business in India is:
Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999.
Life Insurance
Popular Products: Endowment Assurance (Participating), and Money Back
(Participating). More than 80% of the life insurance business is from these products.

What is LIFE INSURANCE ?

In

the

last

several

decades, the

life

insurance industry has developed a

number of products that combine the protection of life insurance death benefits, with a
significant cash value element. Policies such as

universal life, variable life, and

universal-variable life allow an individual to purchase a single financial instrument

providing for both life insurance and long-term accumulation goals. Such policies
may serve as a form of forced investment" for those who find it difficult to put funds
aside on a regular basis, but-who-routinely-pay-their-bills.
"Selling of trust" is an interesting proposition but what is 'trust' and in what way does
it affects a consumer's purchasing behavior would be instrumental in building the
brand of an insurance company. This is particularly true for life insurance which is a
long term promise.
People in the rest of the world take insurance as an investment. Indians are very
emotional when it comes to insurance. As there isn't any social security for the aged
to rely on. Young parents look at insurance products for children's education and
support for spouse after oneself. The paper work after maturity or demise for the
beneficiary

should

be

simple.

Trust

is

what

matters

most.

Additionally, life insurance company annuities, with either a fixed or variable return,
offer a tax-deferred method of accumulating additional-retirement-funds.
o

Uses: Life insurance products are commonly used for long-term

accumulation goals. Available cash values may also serve as an "emergency

12

reserve," if needed, or a source of loans, since life policies frequently include

features permitting borrowing against these cash values.
Risks: Fixed contracts rely on the financial strength of the issuing life

insurance company. Inflation may negatively impact a fixed return contract.

Variable contracts share the risks of the underlying investments. Loans and
withdrawals must be carefully structured to avoid negative income tax results.

Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI
Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and
recommend its future direction. The Malhotra committee was set up with the
objective of complementing the reforms initiated in the financial sector. The reforms
were aimed at creating a more efficient and competitive financial system suitable for
the requirements of the economy keeping in mind the structural changes currently
underway and recognizing that insurance is an important part of the overall financial
system where it was necessary to address the need for similar reforms In 1994,
the committee submitted the report and some of the key recommendations included:
i) Structure
Government stake in the insurance Companies to be brought down to 50%
Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations
All the insurance companies should be given greater freedom to operate.
ii) Competition
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to
enter the industry
No Company should deal in both Life and General Insurance through a single entity
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies
Postal Life Insurance should be allowed to operate in the rural market
Only one State Level Life Insurance Company should be allowed to operate in
each state

13

iii) Regulatory Body

The Insurance Act should be changed.
An Insurance Regulatory body should be set up.
Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.
iv) Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced
from 75% to 50%
GIC and its subsidiaries are not to hold more than 5% in any company (There
current holdings to be brought down to this level over a period of time)
v) Customer Service
LIC should pay interest on delays in payments beyond 30 days
Insurance companies must be encouraged to set up unit linked pension plans
Computerization of operations and updating of technology to be carried out in the
insurance industry.
The committee emphasized that in order to improve the customer services and
increase the coverage of the insurance industry should be opened up to competition.
But at the same time, the committee felt the need to exercise caution as any failure
on the part of new players could ruin the public confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating the
minimum capital requirement of Rs.100 crores. The committee felt the need to
provide greater autonomy to insurance companies in order to improve their
performance and enable them to act as independent companies with economic
motives. For this purpose, it had proposed setting up an independent regulatory
body.

Life Insurance Market in India

Many may not be aware that the life insurance industry of India is as old as it is in
any other part of the world. The first Indian life insurance company was the Oriental
Life Insurance Company, which was started in India in 1818 at Kolkata. A number of
players (over 250 in life and about 100 in non-life) mainly with regional focus
14

flourished all across the country. However, the Government of India, concerned by
the unethical standards adopted by some players against the consumers,
nationalized the industry in two phases in 1956 (life ) and in 1972 (non-life). The
insurance business of the country was then brought under two public sector
companies, Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC).
In line with the economic reforms that were ushered in India in early nineties, the
Government set up a Committee on Reforms (popularly called the Mahlotra
Committee) in April 1993 to suggest reforms in the insurance sector. The Committee
recommended throwing open the sector to private players to usher in competition
and bring more choice to the consumer. The objective was to improve the
penetration of insurance as a percentage of GDP, which remains low in India even
compared to some developing countries in Asia.
Reforms were initiated with the passage of Insurance Regulatory and Development
Authority (IRDA) Bill in 1999. IRDA was set up as an independent regulatory
authority, which has put in place regulation in line with global norms. So far in the
private sector, 12 life insurance companies and 9 general insurance companies
have been registered.
By any yardstick, India, with about 200 million middle class households, presents a
huge untapped potential for players in the insurance industry. Saturation of markets
in many developed economies has made the Indian market even more attractive for
global insurance majors.
With the per capita income in India expected to grow at over 6% for the next 10
years and with improvement in awareness levels, the demand for insurance is
expected to grow at an attractive rate in India. An independent consulting company.
The Monitor Group has estimated that the life insurance market will grow from Rs.
218 billion in 1998 to Rs. 1003 billion by 2012 (a compounded annual growth of
16.5%).

15

The Insurance Regulatory and Development Authority (IRDA)

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body
in April 2000 has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies. The other decisions taken
simultaneously to provide the supporting systems to the insurance sector and in
particular the life insurance companies were the launch of the IRDAs online service
for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to
sell their products, which are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life insurance
and 6 general insurance companies have been registered.
Since 1956, with the nationalization of insurance industry, the state-run Life
Insurance Corporation of India (LIC) has held the monopoly in that country's life
insurance sector. General Insurance Corporation of India (GIC), with its four
subsidiaries, was its counterpart in the casualty sector. Over time, taking advantage
of its monopoly and virtual prerogative in establishing premiums, LIC has evolved
into a monolith. With around 600,000 agents in every nook and corner of the vast
country, it has created an enviable brand name, particularly among the rural
population of the country. It has around $40 billion as its life fund and is a strong
player in the financial sector. However, on the qualitative side, it has very little to take
pride in. And there lies the potential for foreign players to challenge this behemoth.
As is typical with monopolies, the premium rates charged by LIC are among the
highest in the world, and its track record in customer service can, at best, be called
shabby. With a huge unionized, rigid workforce mostly in the clerical category, LIC
runs the risk of high fixed cost, which will be the deciding factor in productivity in the
competitive scenario. While boasting full-scale automation of its operation, the truth
16

is that its technology is outdated. The new players, with the state-of-the-art
technology under their belt, will be in an advantageous position. 80% of LIC's
business is procured by 20% of its ill-trained agent force. The foreign player, with the
domestic partner's strong brand value, can test the unconventional distribution
channels like brokers, the Internet, the banking distribution system, etc. Although
foreign players may be tempted to keep their operation in the big cities for the
'creamy layer' of the society, the real market lies in rural India, which accounts for
the lion's share of LIC's present business. The foreign player must learn to adapt to
Indian realities. The well-publicized failures of world famous consumer goods
companies like Electrolux, Whirlpool, Reebok, Nike etc. to gauge the Indian psyche
and sentiments demonstrate the concept. They failed in the areas of realistic pricing,
product promotion and reaching to the consumer. The foreign companies need to
know the "ground realities" to the details.

The Insurance sector in India was nationalized in the post-independence period. The
business was thus open only to those companies, which were under government
control for more than four decades. LIC and GIC were monopolies in life insurance
and general insurance respectively. The (congress) government set up an Insurance
Reforms Committee in April 1993. The Committee submitted its report in January
1994, recommended a phased program of liberalization, and called for private sector
entry and restricting of the LIC, and GIC. The United Front government moved an
insurance bill but did not pass. The BJP government moved an insurance bill again
in 1998, which had also to be referred back to a select committee of parliament.
The Insurance Regulatory Development Authority Act passed in November 1999 has
set the ball rolling for the entry of private players in the domestic sector.

The Importance of Life Insurance

17

Losing someone close is one of the toughest things we will all have to deal with. If
that person has not properly planned ahead to cover the expenses they have left
behind then they leave a tremendous burden on their loved ones. The grieving
process is difficult enough but when complicated with financial issues can leave
bitter feelings. The last thing someone wants to be remembered for is not properly
planning ahead.
Term life insurance is a cost effective way to protect the ones you care about from
having to clean up a financial mess after you have passed on. Several unexpected
costs arise after death such as funeral expenses and burial costs, medical
expenses, and other costs that normally rise into the tens of thousands of dollars. In
addition to these final expenses there are the normal costs of living to pay for. The
regular monthly bills such as mortgage payments, insurance, loans, and other
expenses must still be paid even though youre gone. All of these expenses can
quickly deplete your savings or retirement money and force loved ones to sell things
investments below value. We need liquid assets that can be available quickly after
our death. Even high net worth individuals need life insurance because houses,
property, and other investments cant be sold fast enough to provide the required
assets. If our loved ones are forced to quickly sell investments such as houses,
property, stocks, or mutual funds, they possibly will take a loss just to get the money.
Stay at home parents and non-working spouses are often over looked when it
comes to life insurance. The loss of a stay at home spouse means that the working
spouse will often have to quit their job or pay for someone to take care of kids and
tend to the things at the house.
5 Reason For Buying Insurance Products
Most of us buy a Life Insurance Policy to save tax. It is bought by almost everyone
right from the bigwigs of the business world to small retail investors. And most buy it
for one core reason- to save tax. But should this be the only reason to buy a life
insurance policy? I dont think so. Here I am presenting some guiding principles for
individuals who are contemplating taking life insurance.

18

1. Passing away early: ever safe about life. We often come across people claiming
that nothing is going to happen to them that they are too young to pass away. But do
they really know the future holds for them? We only have to read newspaper
headlines about the recent Tsunami the earthquake that took place not so long and
such other natural calamities to understand how the future can be unpredictable.
Individuals need to insure themselves to secure the future of those who are
dependent on them especially so if they happen to be the sole breadwinners. You
wouldnt want them to go through hardships or rely on others/relatives etc. This in
fact is the prime reason why one should buy an insurance policy.
2. Living too long: Advances in the field of medicine have grown by leaps & bonds
over the past few decades. Due to this life expectancies have gone up. This poses
another problem for individuals. It is generally observed that individuals who tend to
live way beyond their earning years like say till the age of 85 or 90 usually face a
problem coming to terms with increasing costs of living. And that is not taken into
account the manifold increase in medical expenses of course. This takes place
largely due to imprudent financial planning by individuals during their earning years.
Insurance if bought at the right time for the right amount acts as a saviour in such
times. Individuals could opt for a pension plan offered by insurance companies
which suits their profile in terms of income proposed retirement age and proposed
expenses post-retirement. Such plans provide an annuity which means that
individuals keep getting a fixed sum every month/year after they have retired.
3. Painful existence: May be an individual has planned well during his earning
years to secure himself financially. He has also designed his financial portfolio in
such a way that he is drawing a comfortable monthly income to support his family
expenditure. But what if an individual were to have a health problem affecting him or
his spouse? What if the remedy to this ailment were to cost him a sum beyond his
financial capacity? Here again life insurance can act as the saving grace in two
ways. One by way of a medical rider like the accidental death benefit rider,
permanent disability benefit rider, critical illness benefit rider. These riders are taken
along with the life insurance plan and help cover the medical expenses.
And secondly by allowing the individual to surrender the insurance policy. Of course
this should be done only in case of an urgent need like a serious health problem and
19

even then after all other sources that can be used for covering the high cost of
medical expenses.
4. Tax Benefits: Traditionally life insurance has always been bought more for tax
benefits than for what it is actually purposed to do. i.e. insure human life. But the role
of life insurance is an individuals tax planning cannot in any way be undermined.
Individuals can invest in life insurance and can avail a deduction from taxable
income. The tax sops provided on insurance help increase the individuals
disposable income and make him consider taking a life insurance plan which he
otherwise may not have done.
5. Investment: Today life insurance has become an investment tool. After the
introduction of the Unit Link Insurance Plan (ULIPs) life insurance have become
something of a rage which their promise of market linked returns combined with the
duel benefit of insuring life from eventualities.
ULIPs attempt to fulfill investment needs of an investor with protection/insurance
needs of an insurance seeker. ULIPs work on the premise that is class of investors
who regularly invest their saving in products like fixed deposits (FDS), couponbeanng bond, debt funds, diversified equity fund and stocks. There is another class
of individuals who take insurance to provide for their family in case of an eventually.
So typically both these categories of individuals have a portfolio of investments as
well as life insurance. ULIP as a product combines both these products (investment
and life insurance) into a single product. This saves the investor/insurance-seeker
the hassles of managing and tracking a portfolio of products.
We cannot change yesterday: that is clear. Nor can we begin tomorrow until it is
here. But what we can and should do is to make today count to ensure ourselves of
a financially secure and stable tomorrow.

Introduction to Project:
Recruitment and Selection forms the most important part of Human Resource
Management. Recruitment is the process of identifying and attracting job seekers so
20

as to build a pool of qualified job applicants. Selection is the process of checking

whether an applicant meets the qualifications of a specific job and to choose the
applicant who is
most suitable to do the job by making him undergo several) interviews and tests.Unless a proper recruitment and selection policy is laid out, the' process won't be
carried out properly and unless an organization has the best human resources, all
the best strategies, game plans, control systems and organization charts will go
haywire.
Recruitment and Selection is thus the most vital part of Human i Resource
Management, so when I was offered this project title, I \ readily agreed to undertake
it.

Importance of Recruitment in the Field Of Human

Resource Management:
21

1.

It helps to meet the organization's legal and social obligations regarding

composition of its workforce.

2.

It determines the present and future HR requirements of the organization

conjunction with the HR planning activities and job analysis activities.

3.

It help increase the pool of potential personnel required to fill vacancies

4.

Reduces the probability that applicants once selected and made available to

the organization do not leave it after some time.

Importance of Selection in the Field Of Human:

Resource Management:
1. Selection helps select individuals who possess the greatest degree of qualities
required for effective job performance.
2.

Through techniques such as interviews, tests, group discussions, etc, only the

creme among the candidates are selected.

3. Through selection process, the company obtains and assesses information about
candidate's needs and checks how well they match with the job profile. This is very
important to know how satisfied the candidate will be with the job.
4. Selection helps screen out the unsuitable candidates.

Scope of the Project:

1. This study was limited to the Recruitment and Selection of Financial Planning
Advisors of Reliance Life Insurance only.
2. This study was limited to Pune city only.

22

Limitations of the Project:

The time duration for the project was limited to 8 weeks, so a detailed study was not
possible.

INSURANCE COMPANIES CATERING TO ARE

Insurance Companies
Aviva

Life

Insurance

India

Bajaj

Allianz

Birla

Sun

HDFC

Life

Insurance

Life

Insurance

ICICI

Prudential

ING

Vysya

Kotak

Life

Mahindra

Insurance
Old

Mutual

LIC
Max

New

York

MetLife
Reliance
SBI

Insurance

India

Insurance

Life

Insurance

Life

Shriram

Insurance

Life

Tata
Agriculture

Life

Insurance

AIG
Insurance

Apollo

Life
Co

Insurance
of

DKV

India

Insurance

Cholamandalam

MS

General

HDFC

Ergo

ICICI

Lombard

General

Insurance

Tokio

General

Insurance

IFFCO
National

General

Insurance

Insurance

Company

Ltd

New

India

Oriental

Insurance

Company

Reliance

General

Insurance

Royal

Sundaram

Shriram

General

Assurance

Alliance
Insurance

Insurance
Co

Ltd

23

Tata

AIG

United

General
India

Insurance

Universal
Bharti

Sompo
AXA

Canara
DLF

Insurance

Life
HSBC

Insurance
OBC

Pramerica

Life

Insurance

Future

Generali

Life

Insurance

IDBI

Fortis

Life

Insurance

Religare Life Insurance

24

CHAPTER

II

25

INTRODUCTION TO INSURANCE

Organization Structure in RELAINCE Life Insurance

CEO

Directors

Regional Managers

Zonal Managers

Branch
Managers
Finance
Managers

Finance
Executives

Sales
Managers

Assistant Sales
Manager

Administration &
HR Managers

Administration and
HR Executives

Financial Planning
Advisors

26

INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360 degree turn witnessed
over a period of almost two centuries.
A brief history of the Insurance sector
The business of life insurance in India in its existing form started in India in the year
1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC
Act,
1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company established
in the year 1850 in Calcutta by the British.

27

Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalizations) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companys viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.
Insurance sector reforms in 1993, Malhotra Committee, headed by former Finance
Secretary and RBI Governor R. N. Malhotra, were formed to evaluate the Indian
insurance industry and recommend its future direction.
The Malhotra committee was set up with the objective of complementing the reforms
initiated in the financial sector.
The reforms were aimed at creating a more efficient and competitive financial
system suitable for the requirements of the economy keeping in mind the structural
changes currently underway and recognizing that insurance is an important part of
the overall financial system where it was necessary to address the need for similar
reforms
In 1994, the committee submitted the report and some of the key recommendations
included:
i) Structure
Government stake in the insurance Companies to be brought down to 50%
Government should take over the holdings of GIC and its subsidiaries so that these
Subsidiaries can act as independent corporations
All the insurance companies should be given greater freedom to operate
ii) Competition

28

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to

enter the industry
No Company should deal in both Life and General Insurance through a single entity
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies
Postal Life Insurance should be allowed to operate in the rural market
Only one State Level Life Insurance Company should be allowed to operate in each
state
iii) Regulatory Body
The Insurance Act should be changed
An Insurance Regulatory body should be set up
Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent
iv) Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced
from 75% to 50%
GIC and its subsidiaries are not to hold more than 5% in any company (There
current holdings to be brought down to this level over a period of time)
v) Customer Service
LIC should pay interest on delays in payments beyond 30 days
Insurance companies must be encouraged to set up unit linked pension plans
Computerization of operations and updating of technology to be carried out in the
insurance industry
The committee emphasized that in order to improve the customer services and
increase the coverage of the insurance industry should be opened up to competition.
But at the same time, the committee felt the need to exercise caution as any failure
on the part of new players could ruin the public confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating the
minimum capital requirement of Rs.100 crores. The committee felt the need to
provide greater autonomy to insurance companies in order to improve their
performance and enable them to act as independent companies with economic

29

motives. For this purpose, it had proposed setting up an independent regulatory

body.
The Insurance Regulatory and Development Authority Reforms in the Insurance
sector were initiated with the passage of the IRDA Bill in Parliament in December
1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private
sector insurance companies.
The other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the
IRDAs online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to
sell their products, which are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life insurance
and 6 general insurance companies have been registered.
Achievements

* 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%.

30

* 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.
* The Company has been the fastest company to reach the 3 million policy mark
and was the 3rd largest private insurer in terms of Policy count in 2012-09
* 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 2011- 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 2012 for its work on promoting
'self help channels for service'

News

31

Start investing early and reap more from

less
nil - 21/04/2010
Source: The Economic Times
The combined annual income of Chennai-based couple Leeba (26) and Luke
Thomas is Rs 8.5 lakh, out of which Rs 10,000 per month goes towards household
expenses. In addition, their monthly outgo includes personal loan EMI totalling Rs
19,250. Their only investment is in a single-premium unitlinked insurance plan (ULIP)
maturing in March 2012. This apart, both have term and health insurance covers in
place. Their near-term goals comprise buying a house (worth Rs 25 lakh) and a car
in the next two years, while the long-term ones include their retirement and childrens
education.

Recommendation
As a young couple with no dependents, it is indeed an apt time to start laying the
foundation for an adequate financial plan to be effected through all stages of life.
Besides serving as an impetus for systematic savings and optimum investments, the
amount they would need to set aside towards goals now would be relatively less than
if they were to defer the savings, thanks to the compounding effect. While the basic
term and mediclaim covers are in place, the family needs to start building a liquid
corpus of Rs 1 lakh to take care of any emergencies. They could start by setting
aside Rs 5,000 a month in case there is an inadequate savings balance.
They have a surplus of around Rs 34,500 per month, after accounting for emergency
corpus. They could allocate up to 70 percent of their investments to equity, with the
rest directed to debt instruments.

32

Life insurers can ask for medical tests

nil - 07/04/2010
Source: Mint
I took a life cover of Rs 30 lakh five years ago. I need some money for a family
emergency. Will borrowing from my life insurance hamper my sum assured in
any way? Will it be very expensive? Should I look at other options instead?
Borrowing money from a life insurance policy does not reduce the sum assured and,
in most cases, it is less expensive than personal loans. However, the availability of
loan depends on the type of policy that you have purchased and the terms and
conditions mentioned in the policy document. For example, unit-linked insurance
plans allow partial withdrawal, while endowment plans allow loans against the policy.
Does a life insurer ask for a medical test? What are the reasons for that? On
what basis do they ascertain the premium under such conditions?<./I>
A medical test is required depending on the age of policyholder, sum assured
requested, the type of insurance policy chosen, ones occupation, etc. If any of these
seem to entail higher risks, the insurer can call for medical tests to ascertain the risk
level before issuing the policy. The risk is collated under each of the above heads to
arrive at the total risk, which is then converted into a premium extra.
Is there any provision or any such life insurance plan under which the nominee
gets

the

sum

assured

in

installments

over

period

of

time?

A few plans available in the market, such as income protection plans, pay the benefit
to the nominee in installments. Apart from these, this type of benefit is normally found
in a few child insurance plans. Under these, on the death of the policyholder, the
child (nominee) gets the sum assured in installments on select ages or period.

What happens if I nominate someone for my life insurance but lose contact
33

with the person? Will the insurance firm track the beneficiary? Where does the
money go if the insurer fails to contact the actual nominee? <./I>
A nominee is usually from the immediate family. For example, spouse, child, parents,
brother or sister. If a nominee fails to contact the insurance company when a
policyholder dies, the insurance company makes every attempt to contact the
nominee to pay the benefit amount. It is advisable to keep the insurance company
updated about the contact details of the nominee(s), if the nominees address is
different from that of the policyholder.
Diabetics

may

have

to

pay

more

premium
nil - 21/04/2010
Source: Mint
How do life insurers decide how much life cover to give? Does it entirely
depend

on

how

much

premium

am

ready

to

pay?

There are many criteria that determine the cover offered by a life insurer. The
insurance cover depends on the income of the person, whether the person already
has a life insurance cover, the risk assessment of the life to be insured, the
customers current health status, age, ability to pay the premium and the amount of
sum assured asked for. These factors together determine the amount of insurance to
be granted.
I am 40 years old and am diabetic. I want to take life insurance, but am afraid I
wont get one or I may be charged a very high premium. Is it so? Please explain
the process of getting a life cover for people who have a pre-existing disease.
In case the applicant is diabetic, the issuance of a life insurance cover depends on
various parameters, such as the extent or level of diabetes diagnosed. In all
probability, the cover is issued to the person, but the premium charged could be on
the higher side. The amount of extra premium will depend on the level and type of
diabetes. If a person has a pre-existing disease, the life insurer determines the extent
of the same through medical tests. Depending on the intensity or extent of the
34

disease, the life insurer will suggest a higher premium amount depending on the
health risk assessment.

Can I take a life insurance policy in the name of my spouse, my three-year-old

child

and

myself?

Can

the

insurer

deny

me

cover?

Yes, you can take a life insurance policy for yourself, your spouse and your threeyear-old-child. In fact, a child plan can be taken as soon as the child is born.
Regarding the second part of your question, yes the company reserves the right to
decline a life insurance proposal. Usually, this is done after assessing lifestyle, health
and other criteria. Issuance or denial of a life insurance cover usually depends on the
life

insurance

companys

internal

policies.

What do you think is the right age to take a life cover and why?
One can take a life cover depending on ones needs at any point in time. However,
the earlier one takes a life cover, the cheaper will be the premium rate. Ideally,
everyone should buy a term plan as soon as they land their first job. Buying a term
plan at an early stage will get protection at the cheapest premium rates. Also,
changes in life circumstances warrant periodic reviews of your risk cover to ensure
that your insurance keeps pace with changing needs.

35

Press release
Reliance life lanunches ulip

36

The world is talking about us

37

About The Company

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
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 Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)
registered with the Reserve Bank of India under section 45-IA of the Reserve Bank
of India Act, 1934.
Reliance Capital sees immense potential in the rapidly growing financial services
sector in India and aims to become a dominant player in this industry and offer fully
integrated financial services.
Reliance Life Insurance is another step forward for Reliance Capital Limited to offer
need based Life Insurance solutions to individuals and Corporate.
Chairman of Reliance Life Insurance
Regarded as one of the foremost corporate leaders of contemporary India, Mr. Anil
D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group,
namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance
Natural Resources.
He is also the president of the Mr. Dhirubhai Ambani Institute of Information and
Communications Technology, Gandhinagar.
An MBA from the Wharton School of the University of Pennsylvania, Mr. Ambani is
credited with pioneering several financial innovations in the Indian capital markets.
38

He spearheaded the countrys first forays into overseas capital markets with
international public offerings of global depositary receipts, convertibles and bonds.
Under his chairmanship, the constituent companies of the Reliance ADA group have
raised nearly US$ 3 billion from global financial markets in a period of less than 15
months.
Mr. Ambani has been associated with a number of prestigious academic institutions
in India and abroad.
He is currently a member of :

Wharton Board of Overseers, The Wharton School, USA

Board of Governors, Indian Institute of Management (IIM), Ahmedabad

Board of Governors, Indian Institute of Technology (IIT), Kanpur

Executive Board, Indian School of Business (ISB), Hyderabad

In June 2004, Shri Ambani was elected as an Independent member of the Rajya
Sabha Upper House, Parliament of India, a position he chose to resign voluntarily
on March 25, 2006.
Select Awards and Achievements

Voted the Businessman of the Year in a poll conducted by The Times of India
TNS, December 2006

Voted the Best role model among business leaders in the biannual Mood of
the Nation poll conducted by India Today magazine, August 2006

Conferred the CEO of the Year 2004 in the Platts Global Energy Awards

Conferred 'The Entrepreneur of the Decade Award' by the Bombay

Management Association, October 2002

Awarded the First Wharton Indian Alumni Award by the Wharton India
Economic Forum (WIEF) in recognition of his contribution to the
establishment of Reliance as a global leader in many of its business areas,
December 2001

39

Selected by Asia week magazine for its list of 'Leaders of the Millennium in Business
and Finance' and was introduced as the only 'new hero' in Business and Finance
from India, June 1999.
Vision
To build a global enterprise for all our stakeholders, and
A great future for our country,
To give millions of young Indians the power to shape their destiny,
The means to realize their full potential
Value

Shareholder Interest

People Care

Consumer Focus

Excellence in Execution

Team Work

Proactive Innovation

Leadership by Empowerment

Social Responsibility

Respect for Competition

Shareholder Interest

We value the trust of shareholders, and keep their interests paramount in every
business decision we make, every choice we exercise

People Care

We possess no greater asset than the quality of our human capital and no greater
priority than the retention, growth and well-being of our vast pool of human talent
40

Consumer Focus

We rethink every business process, product and service from the standpoint of the
consumer so as to exceed expectations at every touch point

Excellence in Execution

We believe in excellence of execution in large, complex projects as much as small

everyday tasks. If something is worth doing, it is worth doing well.

Team Work

The whole is greater than the sum of its parts; in our rapidly-changing knowledge
economy, organizations can prosper only by mobilizing diverse competencies, skill
sets and expertise; by imbibing the spirit of thinking together -- integration is the
rule, escalation is an exception

Proactive Innovation

We nurture innovation by breaking silos, encouraging cross-fertilization of ideas &

flexibility of roles and functions. We create an environment of accountability,
ownership and problem-solving based on participative work ethic and leading-edge
research

Leadership by Empowerment

We believe leadership in the new economy is about consensus building, about

giving up control; about enabling and empowering people down the line to take
decisions in their areas of operation and competence

Social Responsibility

We believe that organizations, like individuals, depend on the support of the

community for their survival and sustenance, and must repay this generosity in the
best way they can

41

Respect for Competition

We respect competition because theres more than one way of doing things right.
We can learn as much from the success of others as from our own failures

Governance

Our governance Great corporations, like individuals, are known for their unwavering
commitment to ethical values and principles. At Reliance - ADA Group, we remain
steadfast in our resolve to uphold the highest standards of integrity, transparency
and governance.
For us, corporate governance is not just about adhering to the formal letter of the
law, but about embracing the substantive spirit that lies underneath; to move beyond
the statutory obligations.
The key aspects of our corporate governance practice are:

Monitoring of executive and director compensation

Providing autonomy to the Board

Implementing rigorous disclosure and transparency norms

Reliance Capital Ltd is a part of the Reliance - Anil Dhirubhai Ambani Group
Reliance Capital is one of Indias leading and fastest growing 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, life and
general insurance, private equity and proprietary investments, stock broking and
other activities in financial services.
RCL is registered as a depository participant with National Securities Depository Ltd
(NSDL) and Central Depository Services Ltd (CDSL) under the Securities and
42

Exchange Board of India (Depositories and Participants) Regulations, 1996. RCL

has sponsored the Reliance Mutual Fund within the framework of the Securities and
Exchange Board of India (Mutual Fund) Regulations, 1996.RCL primarily focuses on
funding projects in the infrastructure sector and supports the growth of its subsidiary
companies, Reliance Capital Asset Management Limited, Reliance Capital Trustee
Co. Limited, Reliance General Insurance Company Limited and Reliance Life
Insurance Company Limited. As of March 31, 2005, the companys investment in
infrastructure projects stood at Rs. 1071 Crores. The investment portfolio of RCL is
structured in a way that realizes the highest post-tax return on its investments.
Reliance Mutual Fund (RMF)
Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group (RADAG)

is

one

of

the

fastest

growing

mutual

funds

in

the

country.

Reliance Mutual Fund offers investors a well rounded portfolio of products to meet
varying investor requirements. Reliance Mutual Fund (RMF) is one of Indias leading
Mutual Funds, with Assets Under Management (AUM) of Rs. 59,857 crore (AUM as
on

30th

June

2011)

and

an

investor

base

of

over

3.4

million.

Reliance Mutual Fund constantly endeavors to launch innovative products and

customer service initiatives to increase value to investors.
Reliance Mutual Fund schemes are managed by Reliance Capital Asset
Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd.
Reliance Capital is one of India's leading and fastest growing 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, life and
general insurance, private equity and proprietary investments, stock broking and
other financial services.
Reliance Life Insurance
Reliance Life Insurance is an associate company of Reliance Capital Ltd., which
along with its associates has acquired 100% shares in AMP Sanmar Life Insurance
Co Ltd.
43

Reliance Life Insurance has a pan presence and a range of products catering to
individual as well as corporate needs
A total of 16 products covering savings, protection & investment requirements
Reliance Life Insurance would strive hard to achieve the following goals:Emerge as transnational Life Insurer of global scale and standard
Achieve impeccable reputation and credentials through best business practices
Vision : Empowering everyone live their dreams
Mission : Create unmatched value for everyone through dependable, effective,
transparent and profitable life insurance and pension plans
Guiding Principles
-

Customer

Corporate

Care
Governanc-

and
Creativity

Satisfaction
and

Innovation

- Competitiveness
Reliance General Insurance
Reliance General Insurance, a Subsidiary of Reliance Capital, is one of the first nonlife companies to get the license from the IRDA. RGICL offers an exhaustive range
of insurance products that covers most risks including Property, Marine, Casualty
and Liability.
Plans Offered by Reliance Life Insurance:

Individual Plans

Reliance Endowment Plan

Reliance Special Endowment Plan

Reliance Cash Flow Plan

44

Reliance Child Plan

Reliance Whole Life Plan

Reliance Connect 2 Life Plan

Retirement

Reliance Golden Years Plan

Reliance Golden Years Plan Value

Reliance Golden Years Plan Plus

Unit Linked

Reliance Automatic Investment Plan

Reliance Money Guarantee Plan

Reliance Market Return Plan

Risk / Protection
Reliance Term Plan
Reliance Simple Term Plan
Reliance Special Term Plan
Reliance Credit Guardian Plan
Reliance Special Credit Guardian Plan

Employee Benefits Plans

Risk (Protection)
Reliance Group Term Assurance Policy
Reliance EDLI Scheme

Pensions
Reliance Group Gratuity Policy
Reliance Group Superannuation Policy

Protection Plans
45

Reliance Term Plan

Reliance Simple Term Plan

Reliance Special Term Plan

Reliance Credit Guardian Plan

Reliance Special Credit Guardian Plan

Reliance Endowment Plan

Reliance Special Endowment Plan

Reliance Connect 2 Life

Reliance Whole Life Plan

Reliance Wealth + Health Plan

Reliance Cash Flow Plan

Child Plans

Reliance Super Invest Assure Plan

Reliance Child Plan

Reliance Secure Child Plan

Reliance Wealth + Health Plan

Savings & Investment Plans

Reliance Savings Linked Insurance Plan

Reliance Super Invest Assure Plus Plan

Reliance Super Invest Assure Plan

Total Investment Plan I - Insurance

Reliance TIPS -Series I- Insurance

Reliance Wealth + Health Plan

Reliance Super Automatic Investment Plan

Reliance Money Guarantee Plan

Reliance Cash Flow Plan

Reliance Super Market Return Plan

Reliance Endowment Plan Reliance Special Endowment Plan

Reliance Whole Life Plan

Reliance Super Golden Years Plan

Reliance Super Golden Years Plan - Value

Reliance Super Golden Years Plan - Plus

Reliance Connect 2 Life Plan

Reliance Imaan Investment Plan

Retirement Plans
Total Investment Plan II Pension

46

Reliance Super Golden Years Plan

Reliance Super Golden Years Plan - Value

Reliance Super Golden Years Plan - Plus

Reliance Wealth + Health Plan

Reliance Super Automatic Investment Plan

Reliance Money Guarantee Plan

Group Plans

Employers Liability Solutions

Employee Protection Solutions

Employee Voluntary Benefits

Vision
To be an insurer of World Standards and the most preferred choice for
clientele at the domestic and global level.
Mission
Our Mission is to keep the customer satisfaction as focal point of all
our operations, adopt the best international practices in underwriting,
claims and customer service, be the most innovative in product
development, establish presence all over India, ensure sustained
value addition to all stake holders and to uphold Corporate Value &
Corporate Governance.
Objectives
Make affordable insurance accessible to all
Keep customer as focal point for all operations
Protect policy holders interests
Adopt best international practices in claims, underwriting and policy
servicing
Be the most innovative in product development
Establish Pan India presence
Value propositions
Risk Evaluation: Provide expertise in risk evaluation and risk mitigation
leading to the most appropriate risk transfer solution.
47

 Post sales services: Differentiate on service parameters by ensuring

prompt and correct documentation& fair, transparent, speedy claims
settlement.
New products: Introduce innovative products suited to specific market
segments
Training: Extensive training to the employees involved in underwriting
and
claims to ensure availability of a varied experienced and competent
team to cater to the customer needs.
Technology: Use IT as a means to provide for a far superior customer
experience in terms of access, speed and simplicity
Reinsurance backing: Apart from using capacity of the national reinsurer,
establish relationships with the best reinsurers across the world.
Leadership Team
BOARD OF DIRECTORS
Gautam Doshi, Non Executive Director
Gautam is the Group Managing Director of Reliance Anil Dhirubhai
Ambani Group and Non Executive 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. He 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.
Gautam is a qualified Chartered Accountant.
Satya Pal Talwar, Independent Director

48

 Satya Pal is an Independent 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
organisations 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 organisations 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.
Rajendra Chitale, Independent Director
Rajendra is an independent Director at Reliance Life Insurance
Company Limited.
Rajendra is the Managing Partner of M/s. M.P. Chitale & Associates,
Indias leading financial boutique specialist with converging expertise
in financial structuring, legal, tax and regulatory advice.Government of
Maharashtra. Rajendra serves as independent director on the boards
of the National Securities Clearing Corporation Limited, Asset
Reconstruction Company (India) Limited, Reliance Capital Limited,
Ambuja Cements Limited, Hinduja Global Solutions Limited, Hinduja
Ventures Limited, Ishaan Real Estate Plc, Reliance General Insurance
Company Ltd. He is a member of the Insurance Advisory Committee of
the IRDA and the Advisory Committee on Regulations, Competition
Commission of India. He has served on the board of LIC, UTI, NSE,
SIDBI, and has served as a member of Takeover Panel of SEBI, the
Company Law Advisory Committee, Government of India, the Investor
Education and Protection Fund, Government of India, and the
Maharashtra Board for Restructuring of State Enterprises,
Rajendra is an eminent Chartered Accountant and law graduate.
Soumen Ghosh, Non Executive Director
49

 Soumen is currently the Group President of Reliance Capital Limited

and Non Executive Director of Reliance Life Insurance Company
Limited.
Soumen has an experience of around 22 years in the areas of General
Insurance and Life Insurance in India and abroad. Soumen was
previously responsible for the overall Allianz operations in India and
Middle East. Soumen worked as the Chief Executive Officer of Bajaj
Allianz Life Insurance Company and Country Manager, Bajaj Allianz,
India. At Bajaj Allianz Life Insurance Company, Sam was attributed
with bringing new strategic initiatives on distribution and at the same
time launching customer need based flexible and simple products
designed for India.
Soumen is a member of the Institute of Chartered Accountant in
England & Wales and Institute of Chartered Accountant of Australia
Malay Ghosh, Executive Director & President
Malay is the Executive Director and President of Reliance Life
Insurance Company.
Malay leads all activities at Reliance Life Insurance Company Limited
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 from Indian Statistical
Insititute, Kolkata.
Top Management Team-Reliance Life Insurance
Malay Ghosh Executive Director & President
Malay is the Executive Director and President of Reliance Life
Insurance Company
Malay leads all activities at Reliance Life Insurance Company Limited
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
50

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 from Indian Statistical
Insititute, Kolkata
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 currently the
advisor to the Board of Information Systems Audit Control Association
(ISACA-USA), Mumbai Chapter. He was president of Information
Systems Audit Control Association (ISACA-USA), Mumbai Chapter for
the year 2011-08.
Sunil Agrawal, Chief Financial Officer
Sunil Agrawal is the Chief Financial Officer (CFO) of Reliance Life
Insurance Company Limited and he is responsible for Financial
strategy formulation and implementation.
Sunil has over 10+ years of post qualification experience of which he
has more than 9+ years experience in the insurance industry in
financial function. Prior to joining Reliance Life Insurance, he has
worked with ICICI Prudential Life Insurance in various roles right from
the inception of the company including compliance, special projects,
Financial Control and finance operations.
He is a B.E. Computer Science, a Chartered Accountant and DISA
(ICAI).
Saroj K Panigrahi, Head Legal, Compliance & Company Secretary

51

 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, Regulatory Compliance and Corporate Governance
domains.
Prior to joining Reliance, he headed the Legal & IP department at
Accentures 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 Accenture, 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).
Pournima Gupta, 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).
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 organisation are
metwithout any compromise on the benefits of the investors.Prior to
52

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.
Manoranjan Sahoo , Head- Agency
Manoranjan is the Head- Agency at Reliance Life Insurance Company
Limited.
Manoranjan started his career in Pharma before Joining LIC as an
Administrative officer. Manoranjan has 20 years of experience in
insurance industry. He has indepth knowledge of Life Insurance
Business by virtue of working in different functions at Life Insurance
Corporation of India. His core competence is setting up of new
business.Prior to joining the Company, he was with Bajaj Allianz Life
Insurance Company Limited as Zonal Head Sales (North & Central).
Manoranjan holds a Masters Degree in Science from Utkal University.
Manoranjan has undergone many Leadership development courses at
ISB,IIM(K) & Michigan University.
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
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 has over 12+ years of IT Experience of which he spend more
than 7+ years Executive Management Experience in overseas. He
53

worked with Cathay Pacific Airways and Computer Sciences

Corporation in Asia Pacific Role at Singapore before he joined
Reliance Life.
In Year 2012 he has been awarded as Pioneer CIO by CIOLDataQuest and Bold 100 CIO by IDG-CIO Forum. He also received
the Early SOA Adopter Award from IBM.He recently won Global BPM
and Workflow Excellence Award 2013 by BPM Forum USA.He Just
won Global CIO 100 2013 Award from CIO Forum USA and Ingenious
CIO 100 2013 by IDG-India CIO Forum.
Mohan is an Engineering Graduate and holds many International IT
Certifications.

Corporate Profile
CEO Mr. P Nandagopal
CFO Mr. Rajesh Bahl
CMO Mr. Rohit Gaurav Mull
COO Mr. K.V Srinivasam
Vice president-Group infrastructure Mr. K. Suresh Babu
Appointed Actuary Ms. Pournima Gupta
Chief Investment Officer Mr.R Rangarajan
Head Hr-Ms. Maneesha Thakur

54

55

CHAPTER III

OBJECTIVES

56

1.

To study the concept of recruitment and selection activities in depth.

2.

To study the recruitment and selection process carried out at Reliance Life
Insurance.

3.

To identify the best source of recruitment.

4.

To find out the selection rate to understand the effectiveness of die current
system of recruitment and selection.

5.

To identify the drawbacks, if any, in the recruitment process at Reliance Life

Insurance.

6.

To provide effective solutions to remove the drawbacks & make the

system more effective.

57

CHAPTER IV

58

Recruitment
7.

Recruitment and selection is the process of identifying the need for a job,
defining the requirements of the position and the job holder, advertising the
position and choosing the most appropriate person for the job. Retention
means ensuring that once the best person has been recruited, they stay with
the business and are not "poached" by rival companies.

8.
9.

Undertaking this process is one of the main objectives of management,

indeed, the success of any business depends to a large extent on the quality
of its staff Recruiting employees with the correct skills can add value to a
business and recruiting workers at a wage or salary that the business can
afford, will reduce costs. Employees should therefore be carefully selected,
managed and retained, just like any other resource

10.
11.

Recruitment refers to the process of finding possible candidates for a job or

function, undertaken by recruiters. It may be undertaken by an employment
agency or a member of staff at the business or organization looking for
recruits. Advertising is commonly part of the recruiting process, and can occur
through several means: through newspapers, using newspaper dedicated to
job advertisement, through professional publication, using advertisements
placed m windows, through a job center, through campus interviews, etc.

12.
13.

Suitability for a job is typically assessed by looking for skills, e.g.

communication skills, typing skills, computer skills. Evidence for skills
required for a job may be provided m the form of qualifications (educational or
professional), experience in a job requiring the relevant skills or the testimony
of references Employment agencies may also give computerized tests to
assess an individual's off-hand knowledge of software packages or typing
skills. At a more basic level written tests may be given to assess numeracy
and literacy. A candidate may also be assessed on the basis of an interview.
Sometimes candidates will be requested to provide a resume (also known as
a CV) or to complete an application form to provide this evidence.
59

14.

In some countries, such as the United States, a great deal of care is legally
mandated to ensure that all candidates are dealt with equitably

15.

Head-hunting is a frequently used name when referring to third patty

recruiters, but there are significant differences. In general, a company would
employ a head-hunter when the normal recruitment efforts have failed to
provide a viable candidate for the job. Head-hunters are generally more
aggressive than in-house recruiters and will use. advanced sales techniques
such as initially posing as clients to gather names of employees and their
positions, personal visits to the candidates office and will purchase expensive
lists of names and job titles. They also prepare a candidate for the interview,
negotiate salary, and conduct closure to the search. In general, m house
recruiters will do their best to attract candidates for specific jobs while headhunters will actively seek them out, utilizing large databases, internet
strategies, purchasing company directories or lists of candidates, networking,
and often cold calling Many companies go to great efforts to make it difficult
for head-hunters to locate their employees.

16.
17.

Third party recruitment firms are usually distinguished by the method in which
they bill a company. Outside recruitment agencies charge a placement fee
when the candidate they recruited has accepted a job with the company that
has agreed to pay the fee. Fees of these agencies generally range from a
straight contingency fee to a fully retained service which is similar to placing
an attorney on retainer. All recruitment agencies are defined by the placement
of a candidate to a particular job within a company.

60

Definition:
By Edwin B. Hippo
"It is the process of

:
searching for prospective employees

and simulating

them to apply for jobs in the organization."

Advantages Of Recruitment
1. The company would have more expertise available to it.
2.

It can assure broad uniformity among human resources of various areas

in respect of education, skill, knowledge, etc.

3. It would facilitate interchangeably of staff among various units.
4.

It enables line managers of various units to concentrate on their

operational activities by relieving them of recruitment functions.

5. It ensures the most effective and suitable placement to
6.

The organization gets the most suitable candidates as well as it is well

aware of the jobs regarding cultural, traditional. family background aspects,

local factors, etc.
7. Organizations can recruit candidates as and when they require.
8. The units enjoy the freedom in Finding out, developing the sources, in
selecting and employing the techniques to stimulate the candidates.
9. The units would relatively enjoy the advantage about the availability of the
information, control, and feedback and various functions/processes of
recruitment.
61

STAGE IN THE RECRUITMENT AND SELECTION OF AN FPA IN

RELIANCE LIFE INSURANCE
Data Collection

Telecalling

Initial Interview

No

Selected
Candidate

Candidate Rejected

Yes
Aptitude Test

No

Selected
Candidate

Candidate Rejected

Yes
Final Interview

No

Selected
Candidate

Candidate Rejected

Yes
100 hr/ 50hr training followed by IRDA exam

No
Candidate Rejected

Selected
Candidate

Yes
Shortlisted

62

SECTION 2:
RECRUITMENT AND SELECTION PROCEDURE AT RELIANCE LIFE
INSURANCE
Who Is A Financial Planning Advisor or an FPA? A Financial Planning Advisor
or an FPA is similar to an Insurance Agent. He has to look for customers and
sell them Insurance products and policies.
My assignment in RELIANCE Life Insurance was Recruitment and Selection of
Financial Planning Advisors.
Stages Involved In the Recruitment of an FPA:

(A) The first step in the process of recruiting was Job Analysis. I had to study
the nature of the job that the FPAs were to perform. This helped me decide
what sort of people to recruit. The main job of an FPA is to hunt for customers
and to sell them the insurance policies. I, then, proposed the minimum
qualifications required for a potential candidate to be recruited as an FPA to
the manager and he accepted those. These minimum qualifications were:
1. The candidate should be at least 12th pass.
2. The candidate should have basic communication skills.
(B) The next step was find out the several sources to look for candidates:
The following were the sources through which I had to hunt for potential
candidates:

63

a)lMiiploymcrit portal website such as Naukri.com and

Monster.com:
Reliance Life Insurance has registered with Naukri.com and Monster.com in
order to get up to date information on potential candidates.
b) Placement agencies:
The Pune branch of Reliance Life Insurance has registered with a local
placement agency called 'Smiles Placement Agency'.
c) References given by present FPA's:
The present FPA's give references about interested candidates. The
information provided by these is almost accurate.
d) Town Hall Meetings:
All the branches of Reliance Life Insurance host Town Hall Meetings. These
are not formal meetings as he name suggests, but are informal panics where
the FPA's get their friends and relatives along and these are acquainted with
the company, its policies, the benefits of being an FPA and are coaxed to join
in as either full time or part time FPA's.
e) Email Job offers:
Offers for the vacancies were also emailed to the candidates.
(C) The next task was to prepare a database of the details of all the potential
candidates. I was also given a Data Sheet to keep a record of all the potential
candidates.
(D) Telecalling:
This was the most important task in the whole process of recruitment and
selection. 1 had to make cold calls to all the potential candidates.

64

I had to create an impression good enough to raise some interest in the

minds of the prospect. I was given a script to do all the telecalling. The script
made the task a bit easier but the task of creating an impression on the
prospect always lies on the telecaller. I had to acquaint the prospect regarding
the job Profile and the benefits of being an FPA and convince them to come
over for an initial interview.
Stages Involved In the Selection Of A Financial Planning Advisor:
(A) Initial Interview:
The purpose of the initial interview was to check the communication skills of
the candidates. General information regarding the prospect's family
background, occupation etc was asked. I also prepared a questionnaire for
the initial interview which the company branch later made its official interview
questionnaire.
(B) Aptitude Test:
The purpose of conducting the aptitude test was to check the aptitude and
general knowledge of the prospects. Only those prospects who passed the
Aptitude test by 40% correct answers were eligible to appear for the final
interview.
(C) Final Interview by the Sales Manager:
The final Interviews were conducted by the Sales Manager.
(D) Submitting Documents and completing other formalities
The prospects who passed (lie final interview had to deposit copies of their id
proof, educational qualification and fill some documents.
(E) Preparing the candidates for Training:
The candidates had to go through a training of 50 or 100 hours depending on
the educational qualifications. This training was conducted as per the rules of

65

the IRDA Act. I was supposed to give them a brief idea regarding how the
training would he.
(F)IRDA Exam:
The candidates had to give an exam conducted by the IRDA.
(G) Selection and License Issual to the successful candidates:
The candidates who passed in the IRDA Exam were selected by the company
and were issued a license.
Genera] Information On A Financial Planning Advisor
Commission StructureThe job of a Financial Planning Advisor is not a 'Fixed-Pay" job but a
'Commission-based job. Following is the commission structure of an FPA:
1st Annual Premium-

35%

2nd Annual Premium-

6%

3rd Annual Premium-

6%

4th Annual Premium-

5% (Till the time policy continues)

This means that when an FPA sells a policy, he gels a commission of 35% on
it. If the customer renews the policy the next year, the FPA automatically gets
6% commission on it. When the customer renews the policy again the third
year, the FPA automatically gets a commission of 6% on it and when the
customer renews the policy hereafter, the FPA gets a commission of 5% on it
for every year the policy is renewed.

66

SELECTION
Selection begins with your completion of an application form. This is designed
to give you the chance to show that your experience provides evidence that
you have begun to develop the competencies that we think are important for a
successful attorney. We will also scrutinize your CV and wish to sec evidence
that you! qualifications and experience are relevant to the position that is
available - sometimes it will be important for a trainee to have very specific
technical abilities, e.g. to match those of his prospective trainer and
supervisor

The Recruitment Process

Job Description
Stage One Define
Requirements

Stage Two Attract

Potential Employees

Stage Three Select Right

People

Job Specification

Job Training

Job Interview

Ability Tests

67

CHAPTER

68

What Is research?
Research is nothing but movement from the known to the unknown
a voyage of discovery.

Some definitions:
Research means a systematic investigation, including research development, testing
and evaluation, designed to develop or contribute to generalization knowledge.
Activates which meet this definition ,constitute research for purposes of this policy ,
whether or not they are conducted or supported under a program which is consider
research for other purposes i.e. some demonstration and services programs may
include research activities .

REASEARCH METHODOLOGY
research: NOUN: 1. a detailed study of a subject, especially in order to discover
(new) information or reach a (new) understanding.
The word "research" is used to describe a number of similar and often overlapping
activities involving a search for information. For example, each of the following
activities involves such a search; but the differences are significant and worth
examining.
research methodology is a way to systematically solve problems .it may be
understood as a science of studying how research is done scientifically .
Thus when we talk about research methodology we not only talk of the research
methods but also consider the logic behind the method we use in the context of our
research study and explain why we are using the particular technique and why we
are not using others so they research results are capable for being evaluated either
by the researcher himself or by others.

69

Research is a process of identifying the status of a phenomenon through deploying

various methods in a systematic manner.
Research is a systematic process of identifying the problems, defining the problems,
identifying the variables/ indicators to address these problems, collecting, compiling,
processing and analyzing data to assess the inherent characteristics of the
phenomenon under study and to identify the objective basis for arriving at a
correct/reliable decision.
Methodology is a combination of methods
Methods are individually applicable.
By variable we mean the characteristics which can be measured and numerically
expressed and the magnitude of which varies from individuals to individuals, item to
item.Profit, sales, age + continuous; family member discontinuous (discrete)
The characteristic which cannot be expressed numerically but indicates a difference
in
For

the

quality

example,

of

the

Efficiency

phenomenon

is

known

(Efficient/inefficient),

as

Skill

an

attribute.

(skilled/unskilled).

Indicator The parameter, information/data on which cannot be collected directly but

can be estimated based on the data or information collected on other variables and
attributes.
Operational definition means assigning measurable criteria to the variables/
indicators used in the research study. For example- A person is considered as
literate if s/he can write a letter in any language is known as the operational
definition of literacy.
To gather the essential data for conducting the research here in I have used both
primary and secondary sources of data collection.

70

Objectives
1.

To

gain

of
familiarity

with

the

Research:

presents

status

of

the

business.

2. To measure the frequency of occurrences of various parameters/indicators.

3. To reveal the trend and tendencies in the business, i.e., to assess the growth or
expansion

potential

of

the

business.

4. To identify the influencing factor or determinants of business parameters.

5. To test the significance and validity and reliability of the results
There are basically 6 types of researches:
1. Theoretical
2. Applied
3. Analytical
4. Descriptive
5. Empirical
6. Conceptual
Primary source :
To collect first hand information , I have made use of questionnaire and personal
interview techniques of data collection .Questionnaire mentioning the various work
and

behavior

related

aspect

of insurance consultant is prepared

and after

interviewing advisors, their managers and co-workers information is gathered.

Primary data is the data which is collected by the researcher directly from his own
observations and experiences. For example, if the researcher conducts a survey for
the collected of data then it is known as primary data. There are various sources of
secondary data like research papers, periodicals, encyclopedias, published
researches, database companies etc. The four major sources of secondary data
collections include International Data source, which provides data related to
economics and politics. Secondly, ICPSR, which is an active social science research
organization. Third source is Integrated Public use of microdata series which
provides data about different countries and Bureau of labor statistics, which gives
data related with employment, industrialrelations, prices etc
71

The primary sources are those which are collected afresh and for the first time, and
thus happen to be original in character.
Secondary source:
Information collected from internet, companys magazines, journals & reports also
provided a good amount of valuable and useful information.
DATA COLLECTION METHODS
The data collection methods which are used for this project are explained below.
1) Collection of data through questionnaire:
This method of data collection is quite popular, particularly in case of big enquiries.
In this method a questionnaire is filled by the concerned person himself. A
questionnaire consist of a number of questions printed or typed in a defined order on
a form or set of forms.
In the project the main source of collecting data was through questionnaire. For this
purpose questionnaire was designed and filled by individuals.
2) Interview:
The interview method of collecting data involves presentation of oral-verbal stimuli
and reply in terms of oral-verbal response. There are two methods of interviewpersonal interview and telephonic interview.
Interview with the help of questionnaire was carried on with individuals. Few
telephonic interviews were also performed in which the response was average due
to time constraints.
So, the characteristics of my questionnaire are:
Questionnaire is short & simple.
Questionnaire is dichotomous & full of multiple choices.
Technical terms & vague expression have been avoided to the extent
possible.
Physical appearance of the questionnaire is attractive looking.

72

Questionnaires were prepared keeping three things in mind:-

a. Quality of Work Life

b. Organization culture.
c. Employee satisfaction.
SAMPLING PLAN
In order to know the information from a mass it is not possible to contact individually
and collect information. This is due to following reason:
Time required is enormous
Expensive
Possible to analyze with a sampling plan
A sampling plan is adopted under which numbers of samples are decided along with
the area from which samples are to be chosen. These samples will represent the
complete lot from where the samples are chosen.
Under this project a random sampling plan is found suitable for analyzing Quality of
Work life.

Performance appraisal Technique360 degree technique of appraising performance

is used so as to avoid possibility

of any inaccuracy in the research findings.

Sample Size 35 Insurance consultant

Meaning- In the word of Edwin B. Flippo Performance appraisal is a systematic,
periodic and so far as humanly possible ,an impartial rating of the employees
excellence in matters pertaining to his present job and to his to his potentialities for
a better job.
In planning the employees development, the performance evaluation plays an
important role.
73

LIMITATIONS

Following points can prove to be a hindrance in the completion of the project:

During the first hand data collection the consultants may not reveal the
complete & true picture of the facts and figures of their performance.

The busy and hectic schedule of the managers , because of which it

may become difficult to have the proper information regarding the
advisors performance.

The published data of the company like reports & statements are not
be easily made available to project trainees.

The time duration for the project was limited to 8 weeks, so detailed study
was not possible.

Scope of the project:

This study was limited to the recruitments and selection of financial planning
advisors of reliance life insurance only.

This study was limited to pune city only

74

CHAPTER

VI

75

Data Analysis and Interpretation is nothing but processing both the primary

and

secondary data collected and completing the documentation with tables and charts,
and interpreting the same for further processing.
In view of this project, I had to find out the success factor of the sources of
recruitment by studying how many candidates from each source turned up from
each source. Besides this, the main task was to analyze all the data regarding the
number of people who are coming in for an interview, the number of candidates
actually facing the interview, those who pass the interview, those who gave the
aptitude test, their score, the candidates who have passed the aptitude test, those
who are to undergo training, those already undergoing training, those who have
finished training, those who are to appear for the IRDA exam, those who gave the
exam, those who passed the exam, those who got the license are depicted through
tables and charts. This number varies on a daily basis. Also the number of
candidates that get selected also vary, depending on their personal skills.

76

ANALYSIS ON THE BASIS OF QUESTIONNAIRE

Analysis -1 Demo graph of the respondents
AGE
No

18-24
of 04

25-34
10

35-44
12

45-54
06

55-above
03

respondent

Analysis:

Data shows that the respondent of 35-44 years are more interested in

insurance sector because after some years of earning , they realized that their
earning is not enough and they want to more earn.

77

78

Sex: Total number of respondent: - 35

Male
Female

26
09

Analysis:
There

are

more number
of

male

respondent
in
comparison
to female respondent because Female are not directly interact with new people.

79

2. What is your qualification? Please tick

SSC

HSC

Graduate

Post

Professional courses

Graduate
02

04

18

08

03

Analysis: Insurance is a complicated product so this is very necessary to know about

the education level of respondent because for understand about insurance the
respondent is qualified.

80

3.Which is your current occupation?

Student Service Self

01

07

Employed
13

House wife Businessman

Retired

03

03

08

Analysis: There is more number of self employed respondent how are interested in
insurance sector.

4. Your household income per month.

81

Rs 5,000-10,000
06

Rs 10,000-20,000
18

Rs 20,000-50,000
10

Above Rs 50,000
01

Analysis: It is important to know about the income of respondent because the higher
income people are most probably not interested in insurance selling due to their ego.

5.Are you interested in earning money from sources other than your
present occupation?
82

Yes

No

33
12

02
23

Analysis:

Most of

the respondents are

interested to earn
more

because

of

human nature.

6. Do you have any experience related to sales?

83

Analysis: The most of the respondents are having the experience of sales because
most of the respondents are self employed and businessman .

7. Do you have any experience in selling financial products? If yes

then what nature.

84

Yes

No

05

30

Analysis: After having the experience of sales but most of the respondents are not
having any experience of financial products because of lack of knowledge of
insurance sector.

8. Do you currently have an agency for Life Insurance Company?

85

Yes
03

No
32

Analysis: 32 from 35 respondents are not having any agency of insurance company
because this sector is a new growing sector and most of the people not aware about
insurance.

9. What is the size of your social contacts?

86

Relatives
52%

Friends
35%

Clients
13%

Analysis: Insurance sector is more concern about contacts and it is more important
that an insurance agent has enough social contact for selling of insurance policies.
So most of the respondents have social contact with their relatives, friends and
clients.

10.Are you interested in knowing more about becoming a financial

advisor?
87

Yes

No

12

23

Analysis: Only 12 out of 35 respondents are interested to become financial advisor

because most of respondents thought that it is a tough job to convince to the people.
Some thought that they have not enough time to do extra work.

88

CHAPTER VII

89

90

Observation& findings
Following are the observation that I encountered during the tenure of my project:
The observation that I encountered were:
1. The overall best source of recruitment is the job sites and job portals on the
internet.
2. Most of the respondents age is 25-35 years old and they are earning but not
satisfied by their income and most of the respondents are male.
3. Most of the FPAs came to know about the vacancies through the job sites.
4. The tools used in selection process such as screening interview, aptitude test,
final interview were not very effective.
5. There is no biasness in selection of the FPAs.
Other observations and findings:
1. The calls that are made to the prospective candidates to convince them to
come for a interview are basically Cold Calls because the candidates are
unknown and convincing them to such an extent that
2. While validating the candidates before an interview the skills that are looked
out for are:
Educational qualifications
Communication skills
Fluency while speaking
91

 Personality
Commitment
Convincing power

In a bio data they look for work experience, educational qualifications, location of
residence, age, style of resume, work experience.
The working environment in the company is friendly as well as professional. This
tends to bring out the best from all the employees.
Every branch of reliance life insurance does not have an HR manager. There are HR
managers only at zonal levels. At branch levels. There is only an HR cum
administration executive who reports to the HR manager at the zonal level.

92

CHAPTER VIII

93

Strengths:

Variety of Products:- Provide high range of choice to customer according to

their Age, Income & Needs.

Brand Name:- Brand name of Reliance Helps to sale the products, because
customer dont hesitate to invest due to faith in Reliance Group.

Rate of Return:- Company provide high rate of returns.

Service:- Service provide by the employee of the Reliance Life Insurance to

their customer is highly satisfactory.

Prone to Change:- Any changes occurred in external environment are easily

coped by the organization & its employees.

Weakness:

Prone to Market Risk:- Insurance industries depend on overall macro

economic condition and market scenario.

Tough Competitions:- There is a very tough competition because of large

number of Asset Management Companies.

Rural Areas:- There is no branch of Reliance Life Insurance in rural area

which have high potentiality to provide high revenue to organization.

High Premium: - The minimum rate of premium of insurance policies is quite

higher which may not be affordable by few section of society.

Opportunities:

Based on Share Market:- As index of share market increase now a days

many people tempted to invest in market, so Insurance may be better
Investment tool for investors.

In India 15% of market is covered due to unawareness of people about

insurance & 85% market area is still uncovered, which provide great
opportunity to insurance industries.

94

Threats:

Tough Competition:- As there are so many insurance companies having

almost same kind of products & policies, so its tough to compete with.

Unawareness:- Major % of population is not aware of insurance and even

Reliance Life Insurance, so its hard to convince people.

Changing Scenario:-Our market scenario is changing day-by-day i.e. our

market is fluctuating, so this makes investor hard to invest.

Government Policies:- Government rules & regulations on issues like:Health, Interest Rate & Terrorism can quickly change the direct of insurance
industry like: reliance Life Insurance.

95

CHAPTER

VII

96

Conclusion

The conclusion of the survey is as follows:

Most of the respondents ages are 25-35 years old and they are earning but
not satisfied by their income & most of the respondents are male.
The respondents are not very much aware of insurance sector and new
insurance companies.
The respondents want to earn more but not as insurance consultant because
they think insurance selling is very tough and time taking job.
The most of the respondents are from serviceman, businessman and self
employed. The students and retired respondents are not very much interested
in insurance selling.
The respondents are having experience of selling but they are not interested
in insurance selling.

97

CHAPTER

VIII

98

Suggestions

The company should always look for more number of insurance consultants,
so the insurance company should concentrate only on productive insurance
consultant not on number of insurance consultants.
The company should try to inform and create awareness about the insurance
sector and its benefits.
The company should try to use road shows, seminar and other technique for
promotion of insurance awareness
The company should try to give more facilities to its insurance consultants.
The company should provide training and workshop to motivate its insurance
consultant.

99

CHAPTER IX

100

QUESTIONNAIRE
1. PERSONAL DETAILS
FULL NAME___________________________________SEX____________
AGE:-18-24 ______25-35______35-45______45-55_______55 and above
Office Address:-________________________________________________
______________________________________________________________
Residence Address:-_____________________________________________
______________________________________________________________
Marital status :-__________________________________

2.What is your qualification? Please tick

a) SSC
b) HSC
c) Graduate
d) Post graduate
e) Professional courses (if yes mention)____________________________
3.Which is your current occupation?
f)

Student

( )

g)

Service/Salaried

( )

h)

Self employed

( )

i)

House wife

( )

101

j)

Businessman

( )

k)

Retired (VRS)

( )

4.Your household income per month.

l)

5000 10000

( )

m)

10000 20000

( )

n)

20000 50000

( )

o)

Above 50000

( )

5.Are you interested in earning money from sources other than your present
occupation?
p)

(a) Yes________

(b) No________

6.Do you have any experience related to sales?

q)

(a)Yes________

(b)

No________

7.Do you have any experience in selling financial products?

If yes then what nature _______________________________

8.Do you currently have an agency for Life Insurance company?

r)

(a) Yes_________

(b)

No________

If yes which company______________________________

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9.What is the size of your social contacts?

s)

Relatives _______

t)

Friends ________

u)

Clients ________

10.Are you interested in knowing more about becoming a financial advisor?

v)

(a) Yes_______

(b)

No_________

If yes we will get in touch with you.

Thank you for sparing your few moments of your valuable time with us.
Thank You.
Signature

103

CHAPTER X

BIBLIBOGRAPHY
1. PERSONNAL MANAGEMENT TEXT AND CASES BY C.B.MAMORIA
104

2. RESEARCH METHODOLOGY BY C.R.KOTHARI.

Magazines & Newspapers

The times of India
The Hindustan Times

WEBSITES
www.reliance.co.in
www.google.com
www.ibef.org
www.indianinsurancecouncil.com
www.irda.org

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