Professional Documents
Culture Documents
ON
SUBMITTED BY:
TARUN KRISHNA
ROLL NO.09715903909_ BATCH NO. (MBA III SEM SECTION B)
This is to certify that I have completed the Project titled “RELIANCE LIFE
INSURANCE PRODUCTS” under the guidance of “Ms. Sonika Bhoj” in the partial
fulfillment of the requirement for the award of the degree of “Masters in Business
……………………….
(TARUN KRISHNA)
in the partial fulfillment of the requirement for the award of the degree of
Advanced Studies, New Delhi” under my guidance and direction. To the best
of my knowledge and belief the data and information presented by him in the
(Project Guide)
RDIAS
There is always a sense of gratitude which one express towards others for their help and supervision in
achieving the goals. This formal piece of acknowledgement is an attempt to express the feeling of
I would like to express my deep gratitude to Mr. Nimit Verma my training coordinator for their constant
co-operation. He was always there with his competent guidance and valuable suggestion throughout the
pursuance of this research project. Special thanks to Ms. Sonika Bhoj who guided me to work honestly
and to give valuable suggestion for improving my work Last but not least I would also like to place of
appreciation to all the respondents whose responses were of utmost importance for the project.
Above all no words can express my feelings to my parents, friends all those persons who
supported me during my project. I am also thankful to all the respondents whose cooperation & support
has helped me a lot in collecting necessary information. I offer my sincere thanks and humble regards
to Rukmini Devi Institute Of Advanced Studies, GGSIP University, New Delhi for imparting
I would also like to thank almighty God for his blessings showered on me during the completion of
project report.
In today’s corporate and competitive world, I find that insurance sector has the maximum growth
and potential as compared to the other sectors. Insurance has the maximum growth rate of 72-
86% while as FMCG sector has maximum 14-17% of growth rate. This growth potential attracts
me to enter in this sector and RELIANCE LIFE INSURANCE has given me the opportunity to
The success story of good market share of different market organizations depends upon the
availability of the product and services near to the customer, which can be distributed through a
distribution channel. In Insurance sector, distribution channel includes only agents or agency
holders of the company. If companies like RELIANCE LIFE INSURANCE, TATA AIG, and
MAX etc have adequate agents in the market they can capture big market as compared to the
other companies.
Agents are the only way for a company of Insurance sector through which policies and benefits
Acknowledgement..............................................................................................................4
Executive Summary………………………………………………………………............5
Chapter Scheme………………………………………………………………………………..6
List of Tables………………………………………………………………………………….10
List of Graphs…………………………………………………………………………………10
List of Charts………………………………………………………………………………….11
CHAPTER 1- INTRODUCTION
1.3.3.1 Population……………………………………………………………15
1.3.5 Limitations………………………………………………………………..24
CHAPTER-2
CHAPTER-3
CHAPTER -4
CHAPTER -5
Analysis………………………………………………………………………………………61-80
CHAPTER-6
CHAPTER-7
Suggestion................................................................................................................................82.
Conclusion………………………………………………………………………………83
Bibliography…………………………………………………………………….84
LIST OF GRAPHS
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CHAPTER 1. INTRODUCTION
Even so nearly 65% of the Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. A large part of
our population is also subject to weak social security and pension systems with hardly any old
age income security
1. The objective which leads me to do this report was my strong desire to know about the
Life Insurance, and its status in India.
2. Second, I wanted to explore that how Reliance Life insurance services help in changing
the Face of Insurance industry in India.
The question which came in to my mind at that time was from where will I learn all this and the
answer which I got for this question was in the form of my project title. Since this is been a
PRIMARY OBJECTIVE- To study and analyze Life insurance, role of Reliance life insurance,
its present scenario and its emerging challenges.
SECONDARY OBJECTIVE- To analyze the impact of Reliance life insurance products, its
scope and opportunities in near future.
The research is primarily both exploratory as well as descriptive in nature. The sources of
information are both primary & secondary. A well-structured questionnaire was prepared and
personal interviews were conducted to collect the customer’s perception and buying behavior,
Procedure:-
As it is a secondary research, all the data is selected after rigorous analysis of articles from
newspapers, magazines and internet. All the research collected is done by professional analyst
across the world and is compiled in this project to understand the financial and business impact
of merger and acquisition more effectively.
Limitations of Study:-
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study
was done in order to know the accuracy of the Questionnaire. The final Questionnaire was
arrived only after certain important changes were done. Thus my sampling came out to be
Research Tool
Bar diagrams,
Tables,
Moving average method for forecasting
4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST? (RANK THEM)
a) LIC
b) ICICIPRUDENTIAL
5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? (Please Tick)
a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______ (Specify)
b) TAX DEDUCTIONS
c) FUTURE INVESTMENT
a) LOW PREMIUM
d) REPUTATION OF COMPANY
____________________________________________________
a) A SAVING TOOL
b) NOT SATISFIED
c) NOT RESPONDING
c) NOT RESPONDING
YES NO
15. WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM)
a) LIC
b) NSC
c) BONDS
d) PPF
e) PF
f) EPF
a) FIXED ASSETS
b) BANK DEPOSITS
e) SHARES
f) INSURANCE
b) SECURITY
c) TAX BENEFITS
a) AFTER 25 Yrs
b) AFTER 35 Yrs
c) AFTER 45 Yrs
d) ANYTIME
a) RIGID PLANS
b) NON-USER FRIENDLY
c) UNSATISFATORY SREVICES
d) NON-AGGRESSIVE
e) SATISFACTORY
f) GOOD
g) VERY GOOD
a) YES
b) NO
THANK YOU
NAME: __________________________________________________________
ADDRESS: _______________________________________________________
_______________________________________________________
OCCUPATION: __________________________________________________
2. Some respondents were reluctant to divulge personal information which can affect the
3. In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered in order to assimilate the
findings.
Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan
trade by giving loans that had to be later repaid with interest when the goods arrived safely. In
2100 BC, the Code of Hammurabi granted legal status to the practice. That, perhaps, was how
insurance made its beginning.
Life insurance had its origins in ancient Rome, where citizens formed burial clubs that would
meet the funeral expenses of its members as well as help survivors by making some payments.
As European civilization progressed, its social institutions and welfare practices also got more
and more refined. With the discovery of new lands, sea routes and the consequent growth in
trade, medieval guilds took it upon themselves to protect their member traders from loss on
account of fire, shipwrecks and the like.
Since most of the trade took place by sea, there was also the fear of pirates. So these guilds even
offered ransom for members held captive by pirates. Burial expenses and support in times of
sickness and poverty were other services offered. Essentially, all these revolved around the
concept of insurance or risk coverage. That's how old these concepts are, really.
“In 1347, in Genoa, European maritime nations entered into the earliest known insurance
contract and decided to accept marine insurance as a practice.”
Enter companies...
The first stock companies to get into the business of insurance were chartered in England in
1720. The year 1735 saw the birth of the first insurance company in the American colonies in
Charleston, SC. In 1759, the Presbyterian Synod of Philadelphia sponsored the first life
In 1835, the infamous New York fire drew people's attention to the need to provide for sudden
and large losses. Two years later, Massachusetts became the first state to require companies by
law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can
cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the
risks are spread among several companies, was devised specifically for such situations.
There were more offshoots of the process of industrialization. In 1897, the British government
passed the Workmen's Compensation Act, which made it mandatory for a company to insure its
employees against industrial accidents.
With the advent of the automobile, public liability insurance, which first made its appearance in
the 1880s, gained importance and acceptance? In the 19th century, many societies were founded
to insure the life and health of their members, while fraternal orders provided low-cost,
members-only insurance.
Even today, such fraternal orders continue to provide insurance coverage to members as do most
labor organizations. Many employers sponsor group insurance policies for their employees,
providing not just life insurance, but sickness and accident benefits and old-age pensions.
Employees contribute a certain percentage of the premium for these policies.
Markets
In tune with the global stock markets that began to recover from the second half of 2003; Indian
stock markets too witnessed rapid growth. India’s two leading indices, the most popular BSE
Sensex, and the one most used by the markets the National Stock Exchanges’ S&P CNX Nifty
rose to record levels. Both primary and secondary market activity experienced sharp surge. Much
progress was made in further strengthening and streamlining risk management, market regulation
and supervision. A few aspects of the major developments in the India’s stock markets are
described below. And the insurance sector is also play an important role in the growth of the
financial market.
Market Structure
Indian securities market is fairly large as compared to several other emerging markets. There are
22 stock exchanges in the country, though the entire liquidity is shared between the countries’
two national level exchanges namely, the National Stock Exchange of India and the Bombay
Stock Exchange Ltd. The regional stock exchanges are in pursuit of business models that make
them viable and vibrant. Meanwhile, these exchanges have become members of the national
level exchanges through formationof subsidiaries whose business is showing continuous growth
and progress. The number of brokers in various stock exchanges rose from 6,711 in 1994-95 to
9,335 in FY06. The number of brokers in all the exchanges together peaked to 10,213 in the year
HISTORICAL PERSPECTIVE
The history of life insurance in India dates back to 1818 when it was conceived as a means to
provide for English Widows. Interestingly in those days a higher premium was charged for
Indian lives than the non - Indian lives, as Indian lives were considered more risky to cover. The
Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to
charge the same premium for both Indian and non-Indian lives.
The Oriental Assurance Company was established in 1880. The General insurance business in
India, on the other hand, can trace its roots to Triton Insurance Company Limited, the first
general insurance company established in the year 1850 in Calcutta by the British. Till the end of
the nineteenth century insurance business was almost entirely in the hands of overseas
companies.
Insurance regulation formally began in India with the passing of the Life Insurance Companies
Act of 1912 and the Provident Fund Act of 1912. Several frauds during the 1920's and 1930's
sullied insurance business in India. By 1938 there were 176 insurance companies.
The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided
strict State Control over the insurance business. The insurance business grew at a faster pace
after independence. Indian companies strengthened their hold on this business but despite the
growth that was witnessed, insurance remained an urban phenomenon.
The Government of India in 1956, brought together over 240 private life insurers and provident
societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC)
was born. Nationalization was justified on the grounds that it would create the much needed
funds for rapid industrialization. This was in conformity with the Government's chosen path of
State led planning and development.
The non-life insurance business continued to thrive with the private sector till 1972. Their
operations were restricted to organized trade and industry in large cities. The general insurance
industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped
KEY MILESTONES
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 by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers along with provident societies were taken over by the
central government and nationalized. LIC was formed by an Act of Parliament- LIC Act 1956-
with a capital contribution of Rs. 5 crore from the Government of India.
Life insurance
Life assurance is a contract between the policy owner and the insurer, where the insurer agrees to
pay a sum of money upon the occurrence of the insured individual's or individuals' death or other
event, such as terminal illness or critical illness. In return, the policy owner (or policy payer)
agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There
may be designs in some countries where bills and death expenses plus catering for after funeral
expenses should be included in Policy Premium. In the United States, the predominant form
As with most insurance policies, life insurance is a contract between the insurer and
Beneficiaries) if an insured event occurs which is covered by the policy. To be a life policy the
Insured event must be based upon life (or lives) of the people named in the policy.
Life policies are legal contracts and the terms of the contract describe the
Limitations of the insured events. Specific exclusions are often written into the contract to limit
the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil
Commotion.
typically a lump sum payment. A common form of this design is term insurance.
Investment policies - where the main objective is to facilitate the growth of capital by
regular or single premiums. Common forms (in the US anyway) are whole life, universal
With the largest number of life insurance policies in force in the world, Insurance happens to be
a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and
presently is of the order of Rs 1560.41 billion (for the financial year 2006 – 2007). Together with
banking services, it adds about 7% to the country’s Gross Domestic Product (GDP). The gross
premium collection is nearly 2% of GDP and funds available with LIC for investments are 8% of
the GDP.
Even so nearly 65% of the Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. A large part of
INDUSTRY REFORMS
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. Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations.
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 IRDA 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.
PRESENT SCENARIO
The life insurance industry in India grew by an impressive 47.38%, with premium income at Rs.
1560.41 billion during the fiscal year 2006-2007. Though the total volume of LIC's business
increased in the last fiscal year (2006-2007) compared to the previous one, its market share came
down from 85.75% to 81.91%.
With the opening up of the insurance industry in India many foreign players have entered the
market. The restriction on these companies is that they are not allowed to have more than a 26%
stake in a company’s ownership.
Since the opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have
poured into the Indian market and 19 private life insurance companies have been granted
licenses.
Innovative products, smart marketing, and aggressive distribution have enabled fledgling private
insurance companies to sign up Indian customers faster than anyone expected. Indians, who had
always seen life insurance as a tax saving device, are now suddenly turning to the private sector
and snapping up the new innovative products on offer. Some of these products include
investment plans with insurance and good returns (unit linked plans), multi – purpose insurance
plans, pension plans, child plans and money back plans. (www.wikipedia.com)
There are many reputed companies in the market which provide the Insurance for living being
and non living beings. The companies in life Insurance are as follows:-
During the analysis of the market it has been found that there are a lot of the brokeing
house in the market which are providing the online trading facility to the individuals or the
group of the individuals.
5paisa.com
You can now buy and sell shares on 5paisa.com with speeds comparable and at times better than
NSE's NEAT Terminal. This speed and reliability comes only with perseverance of pioneer
backed by huge investment in technology! You can now buy and sell shares on 5paisa.com with
speeds comparable and at times better than NSE's NEAT Terminal. This speed and reliability
comes only with perseverance of pioneer backed by huge investment in technology.
ICICI Direct
Online share and mutual funds trading facility by the ICICI group.
Indianstockmarket.net
Indianstockmarket.net is an effort to educate Indian investor by providing useful stock news,
stock market websites, informative articles, resources to various investment guides.
Corporate memberships
Wider product offerings
Greater reliance on research
Accessing equity capital markets
Foreign collaborations and joint ventures
Specialized services/niche broking
Online broking
Emerging challenges and outlook for the brokerage industry
Fragmentation
Founder
Few men in history have made as dramatic a contribution to their country’s economic fortunes as
did the founder of Reliance, Shri. Dhirubhai H Ambani. Fewer still have left behind a legacy that
is more enduring and timeless.
As with all great pioneers, there is more than one unique way of describing the true genius of
Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of
men, the architect of India’s capital markets, the champion of shareholder interest.
But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator. In one
lifetime, he built, starting from the proverbial scratch, India’s largest private sector enterprise.
When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300
(around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise
into a Rs 60,000 crore colossus—an achievement which earned Reliance a place on the global
Fortune 500 list, the first ever Indian private company to do so.
Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when Reliance
Textile Industries Limited first went public, the Indian stock market was a place patronised by a
small club of elite investors which dabbled in a handful of stocks.
Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of the greatest
growth stories in corporate history anywhere in the world, and went on to become India’s largest
private sector enterprise.
Though the company's oil-related operations form the core of its business, it has diversified its
operations in recent years. After severe differences between the founder's two sons, Mukesh and
Anil Ambani, the group was divided between them in 2006.
Reliance Capital (RCAP), a non banking financial company, is the financial service arm of the
Anil Dhirubhai Ambani Group (ADAG) which has varied interests in areas like telecom, energy,
entertainment. 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. Through the company’s subsidiaries, it offers products
and services like mutual fund, life insurance and general insurance. It has sizable private equity
and proprietary investments and is pursuing new ventures like stock broking, consumer financing
and the asset recovery business as well. Reliance Capital, initially focused on the asset
“We will create the next generation communication network and information technology
infrastructure that will bring immense value to every Indian, and leapfrog India into the center
stage of global Infocomm space “
- Dhirubhai Ambani
Shri. Anil D. Ambani was born to Dhirubhai Ambani and Kokilaben Ambani on June
04, 1959 at Mumbai
He did his schooling and graduation in Mumbai and thereafter pursued his Masters of
Business Administration from Wharton Business School, USA
Anil Dhirubhai Ambani is the Chairman of all listed Group companies, namely: Reliance
Communications, Reliance Capital, Reliance Energy, Reliance Health, Reliance
Entertainment and Reliance Natural Resources Limited.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer
Under his leadership, Reliance pioneered India's first forays into overseas capital
markets with international public offerings of global depository receipts, convertibles
and bond
Wharton Board of Overseers, The Wharton School, USA
Central Advisory Committee, Central Electricity Regulatory Commission
Board of Governors, Indian Institute of Management, Ahmedabad
Board of Governors Indian Institute of Technology, Kanpur
In June 2004, he was elected for a six-year term as an independent member of the Rajya
Sabha, Upper House of India’s Parliament a position he chose to resign voluntarily on
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally
involved in every aspect of the company's management over the next 22 years.
Conferred the ‘CEO of the Year 2004’ in the Platts Global Energy Awards
Rated as one of ‘India’s Most Admired CEOs’ for the sixth consecutive year in the
Business Barons – TNS Mode opinion poll,2004
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
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
Honorable members
Amitabh Jhunjhunwala, vice president
Shri Rajendra P. . Chitalale, 46, an eminent Chartered Accountant, is the Managing Partner of
M/s M. P. Chitale & Associates. He is a Director on boards of the National Securities Clearing
Corporation Limited, Asset Reconstruction Company (India) Ltd, Hinduja TMT Limited, HTMT
Global Solutions Ltd, Ambuja Cement Limited, SME Rating Agency of India Limited, Ishan
Real Estate PLC and Reliance General Insurance Company Ltd. He is also a member of the
advisory board of the Insurance and Regulatory Authority of India (IRDA). He has also served
on the boards of Life Insurance Corporation of India, Unit Trust of India, SBI Capital Markets
Ltd., National Stock Exchange of India Ltd. and Small Industries Development Bank of India.
Shri C. P. Jain
Shri C.P. Jain, 61, is the former Chairman and Managing Director of NTPC Ltd. (National
Thermal Power Corporation). Shri Jain has an illustrious career spanning over four decades of
contribution in the fields of financial management, general management, strategic management
and business leadership. He is a fellow member of the Institute of Chartered Accountants of
India with an advanced diploma in Management and is a law graduate. Shri C. P. Jain joined the
Board of NTPC in 1993 as Director (Finance), was elevated as Chairman & Managing Director
in September 2000 and superannuated in March 2006. He is Chairman of the Global Studies
Committee of World Energy Council (WEC), world's largest energy NGO with nearly hundred
member-nations. He has been on several important committees of the Government of India,
latest being the 'Adhoc Group of Experts on Empowerment of CPSEs'. He was Chairman of
Standing Conference of Public Enterprises (SCOPE) between April 2003 and March 2005. He is
a Director on the Board of IL & FS Infrastructure Development Corporation and, is also a
member of the Audit Advisory Board of the Comptroller and Audit General of India.
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 groups, in
terms of net worth.
The Reliance Anil Dhirubhai Ambani Group is one of India's top 2 business houses, and
has a market capitalization of over Rs.2,90,000 crore (US$ 75 billion), net worth in excess
ofRs.55,000 crore (US$ 14 billion), cash flows of Rs. 11,000 crore (US$ 2.8 billion) and net
profit of Rs. 7,700 crore (US$ 1.9 billion
Reliance Capital has interests in asset management and mutual funds, life and general insurance,
private equity and proprietary investments, stock broking, depository services, distribution of
financial products, consumer finance and other activities in financial services. Reliance Mutual
Fund is India's no.1 Mutual Fund. Reliance Life Insurance is India's fastest growing life
insurance company and among the top 4 private sector insurers. Reliance General Insurance is
India's fastest growing general insurance company and the top 3 private sector insurers. Reliance
Money is the largest brokerage and distributor of financial products in India with more than 2
million customers and the largest distribution network. Reliance Consumer finance has disbursed
loans of over Rs.7,000 crores at the end of March 2008.
Reliance Capital has a net worth of Rs.6,086 crores (US$ 1.5 billion) and total assets of Rs.
16,371 crores (US$ 4.1 billion) as of March 31, 2008 and over 21,000 employees.
Health
Individual Med claim Insurance Policy
Group Med claim Insurance Policy
Overseas Travel Care Insurance Policy
Reliance Health Wise Policy (inclusive of PED & Critical Illness) – NEW – a specialized
retail product
Personnel accident
Personal Accident Insurance (Individuals) Policy
Group Personal Accident Insurance
Fire
Standard Fire and Special Perils Policy
Industrial All Risks Insurance Policy
Consequential Loss (Fire) Insurance Policy
Engineering
Erection All Risks/Storage-cum-Erection Insurance Policy
Contractor’s All Risks Insurance Policy
Contractor’s Plant and Machinery Policy
Machinery Breakdown Insurance Policy
Machinery Loss of Profits Insurance Policy
Boiler & Pressure Plant Insurance Policy
Electronic Equipment Insurance Policy
Marine
Marine Cargo Insurance Policy
NEW - Marine Turnover based Policy
NEW - Multi Transit Polices
Motor
Private Car Comprehensive Insurance Policy
Liability
Directors and Officers Liability Insurance Policy
Key Advantage
Comprehensive coverage against various perils spread across different sections of the
policy.
The policy offers the flexibility to customize the policy by selecting appropriate covers.
Insured has the option of selecting coverage either on the basis of market value or the
reinstatement value.
Discounts ranging from 5% to 20% for customers opting for four or more sections, for
favorable claims experience and on renewal of the policy.
Policy exclusions
At reliance general insurance, we would like our policy to be as transparent as possible. To
ensure that you do not face any unpleasant surprises when you make a claim, we would like you
to know some of the major exclusions under the policy.
Coverage under this policy is spread across 11 optional sections, enabling you to choose from
them and customize the policy
The physical structure of your shop (under section 1A) and the contents therein (under
Section 1B) can be covered against fire and allied perils. These comprise:-
Fire
Lightning
Explosion / implosion
Aircraft Damage
Impact Damage
Bush fire
Launched in 2002, PAN India CDMA based telecom service provider, an integrated
telecom company having largest infrastructure
India’s No. 1 wireless service provider with more than 50 million customers.
Largest pan India coverage-over 11000 towns & 3 lakh villages. Over 10 million
subscribers carry a handset that’s capable of getting high speed internet connectivity.
More than 50% of the international calls coming to India use Reliance network.
Reliance Life Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group is India's fastest
growing life insurance company and among the top 4 private sector life insurers.
Reliance Life Insurance has a pan India presence and a range of products catering to individual
as well as corporate needs. Reliance Life Insurance has over 700 branches and 1, 80,000 agents.
It offers 26 products covering savings, protection & investment requirements. Reliance Life
Insurance will endeavor to attain a leadership position in the market over the next few years, by
further expanding and strengthening its distribution network and offering a diverse array of
products to suit the varied and specific needs of individual customers.
30-45 years: - Peak earning age range. High asset creation & build up of liabilities. Critical stage
for dependents
40 years and above: - Asset base build up& liabilities reduced/taken care of. Need for
retirement planning more than risk taking.
Retirement: - Need for protection low. Greater need for regular income flow
Endowment
Savera has just come to our lives. As proud parents, We need to protect her as well as create her own financial
standing
Hello, I am Philip, sailor. Have seen the world. Always on cruise and keep worrying about
family and the loans. I need financial protection.
Annuities
Worked for almost 25 years, now want to live…. I want something that will make my life
Chinta-free after retirement….
Life Insurance products are usually referred to as ‘plans’ of insurance. These plans have two
basic elements; one is the “Death Cover” providing for the benefits being paid on the death of
the insured person within a specified period. The other is the “Survival Benefit” providing for the
benefit being paid on survival of a specified period.
Plans of insurance that provide only death cover are called “Term Assurance” Plans.
Plans of insurance that provide only survival benefits are called “Pure Endowment”
Plans.
ULIPs
A ULIP is a life insurance which provides a combination of Life Insurance protection and
investment. Money can be invested in the following fund:- Equity Fund, Debt Fund, Money
Market Fund (Liquid Fund) and Balance Fund.
Annuities
Annuities are practically the same as pension. Pension provides periodical payments to the
employees, who have retired. They are paid as long as the recipient is alive. Annuities are called
the “reverse” of Life Insurance.
Protection Plans
Protect your family even when you’re not around by investing in Reliance Protection
Plans.Choose a limited period plan or a lifetime protection plan depending on your needs. The
latest Protection Plans are as below:-
Retirement Plans
Invest today in Reliance Retirement Plans and save money to enjoy life even after retirement.
You will never have to depend on another person or make any compromises to maintain your
current lifestyle. The latest Retirement Plans are as below:-
Under This plan the investment risk in the investment portfolio is borne by the Policy holder.
Key features
Twin benefit of market linked return and insurance protection
A unit linked plan, different from traditional life insurance products with maximum
maturity age of 80 years.
Option to create your own portfolio depending on your risk appetite.
Choose from four different investment funds
Flexibility to switch between funds
Option to pay regular as well as single premium & top- ups
Option to package your policy with accidental rider
Flexibility to increase the sum assured
Liquidity through partial withdrawals
Benefits
Life cover Assured: in case of unfortunate loss of life, the beneficiary will get sum assured or
fund value, whichever is higher. The client can choose the basic sum assured within the
minimum and maximum levels mentioned below.
Maturity Benefits
On survival to maturity the fund value on maturity will be paid out.
Rider Benefits
The Client can add the Accidental Death & Total and Permanent Disablement Benefit Rider
(available only with the regular premium option).
This benefit doubles the life coverage in case of accidental death or accidental total and
permanent disablement at a very nominal additional cost. The maximum cover is Rs. 50, 00,000
per life. In case of accidental death of the life assured during the policy term, the accident benefit
sum assured will be paid immediately in a lump sum.
In case of accidental total and permanent disablement, 1/10th of the accident benefit sum assured
will be paid at the end of each year for ten years. If the total and permanent disablement has
commenced, the accidental death benefit cover ceases.
In case of maturity or on death of the life assured before payment of all installments of accidental
total and permanent disablement benefits, the remaining unpaid installments of any will be paid
in one lump sum along with death or maturity benefit.
Accidental total and permanent disablement means disability caused by bodily injury, which
causes permanent inability to perform any occupation or to engage in any activities for
remuneration or profits. This disability should last for at least 6 months before being eligible for
accidental total and permanent disablement benefits.
Accidental total and permanent disablement includes loss of both arms and both legs or one arm
and one leg or of both eyes. Loss of arms or legs means dismemberment by amputation of the
entire hand or foot. Loss of eyes means entire and irrecoverable loss of sight.
We understand the value of your hard earned money and in our Endeavour to help you
grow your wealth, we offer you 4 different tailor-made investment funds. You have the
option to allocate your premium in these funds as you wish.
They are:
The investment objective of this fund is to maintain the value of all contributions (net of charges)
and all interest additions. This fund offers steady return for little risk. The risk profile of this
fund is low. Investments would be 100% in bank deposits, government bonds and debt
2. Balanced Fund:
The investment objective of this fund is to provide you with investment returns, which exceed
the rate of inflation in the long term while maintaining a low probability of negative investment
returns. Here, a major portion of your funds are invested in Fixed Securities while a small
percentage is invested in the equity market, which is exposed to market movements. The risk
profile of this fund is low to medium. Investments would be at least 80% in fixed interest
securities and maximum 20% in equities.
3. Growth Fund:
The investment objective of this fund is to provide you with investment returns, which exceed
the rate of inflation in the long term while maintaining a moderate probability of negative
investment returns. A greater portion of your funds are invested in fixed securities while a small
percentage is invested in the equity market, which exposed to market movements. The risk
profile of this fund is medium to high.
4. Equity Fund:
The investment objective of this fund is to provide policyholders with high exposure to equities
and the possibility of investment returns, which generate a high real rate of return in the long
term while recognizing that there is a significant probability of negative investment returns in the
short term. This fund offers a totally equity based investment option. Your returns depend
entirely upon the performance of the equity market. The risk profile of this fund is high. The
higher risk of this portfolio means that expected returns would also be higher. Investment would
not exceed 30% in bank deposits and may be up to 100% in equities.
Value of Units:
Unit Value =
Total number of units on issue (before any new units Are allocated/redeemed.)
or
Unit Value=
The market value of assets plus/less expenses incurred In the purchase/sale of assets plus current
assets plus Any accrued income net of fund management charges Less current liabilities less
provision.
(The premium allocation charge for single premium & top – ups is 2 %.)
For highest NAV guaranteed fund is1.35%is built into the NAV
Revision of charges:
The fund management charges are subject to revision at any time, but hey will not
exceed 2% p.a. for the capital secure fund and 2.5% p.a. for the other funds.
Any changes made to the charges under this policy will be subject to IRDA approval.
This charge will be levied on mortality, accident & disability benefit charges. The level of this
charge will be as per the rate of service tax on risk premium levied by the government from time
to time the correct rate of service tax is 10.3% this charge shall be collected along with charges.
The investments made in the unit funds are subject to investment risks associated with
capital markets and the NAVs of the units may go up or down based on the performance
of the fund and the factors influencing the capital market, and the insured is responsible
for his/her decisions.
The unit price is a reflection of the financial and equity/debt market conditions and can
increase or decrease at any time due to this.
Benefits payable under the policy will be made according o the tax laws and other
regulations in force at that time.
There are no guarantees for any fund of any kind under this policy. The benefit payable
on maturity will be equal to the value of your units.
The name in the funds in n way indicates the returns derived from them.
Please note that Reliance life Insurance company limited is only the name of the
insurance company and Reliance market return plan is only the name of the unit linked
In case the policyholder disagrees with any of the terms and conditions of the policy, he may
return the policy to the company within 15 days of its receipt for cancellation, stating his/her
objections in which case the company will refund an amount equal to the non allocated premium
plus the charges levied by cancellation of units plus fund value as on the date of receipt of the
request in writing for cancellation, less the proportionate premium for the period the company
has been on risk and the expenses incurred by the company medical examination and stamp duty
charges. If the risk acceptance date falls within cooling off period, then on cancellation RLIC
hall pay fund value less of charges.
Mission
To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of
the insurance industry and for matters connected therewith or incidental thereto.
(a) A Chairman;
(b) Five whole-time members;
(c) Four part-time members,
(all Appointed by the Government of India)
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA...
(1) Subject to the provisions of this Act and any other law for the time being in force, the
Authority shall have the duty to regulate, promote and ensure orderly growth of the
insurance business and re-insurance business.
(2) Without prejudice to the generality of the provisions contained in sub-section the
powers and functions of the Authority shall include:-
(a)Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel
such registration;
(b) protection of the interests of the policy holders in matters concerning assigning of policy,
nomination by policy holders, insurable interest, settlement of insurance claim, surrender value
of policy and other terms and conditions of contracts of insurance;
(c) specifying requisite qualifications, code of conduct and practical training for intermediary or
insurance intermediaries and agents;
(d) specifying the code of conduct for surveyors and loss assessors;
(f) promoting and regulating professional organizations connected with the insurance and re-
insurance business;
(g) levying fees and other charges for carrying out the purposes of this Act;
(h) calling for information from, undertaking inspection of, conducting enquiries and
investigations including audit of the insurers, intermediaries, insurance intermediaries and other
organizations connected with the insurance business;
(j) specifying the form and manner in which books of account shall be maintained and statement
of accounts shall be rendered by insurers and other insurance intermediaries;
(o) specifying the percentage of premium income of the insurer to finance schemes for
promoting and regulating professional organisations referred to in clause.
NO.OF
COMPANY’S NAME SHARE (%)
RESPONDENT
L.I.C. 78 78
RELIANCE LIFE
3 3
INSURANCE
ICICI PRUDENTIAL 10 10
SBI LIFE 7 7
HDFC 2 2
TOTAL 100 100
2
7
10 LIC
3 REL
ICICI
SBI
78 HDFC
INTERPRETATION
78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1
NO.OF
BENEFITS SHARE (%)
RESPONDENTS
Tax Deductions 20 20
Future Investment 25 25
TOTAL 100 100
Cover Future
25% Uncertainty
Tax Deductions
20% 55%
Future Investment
INTERPRETATION
55% of the respondents believe that covering future uncertainty is the biggest benefit of
an insurance policy.
Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and
FEATURES OF INSURANCE
POLICY
MONEY BACK
GUAARENTEE
11% LARGER RISK
15% COVERANCE
EASY ACCESS TO
37% AGENTS
30%
LOW PREMIUM
7%
REPUTATION OF
COMPANY
INTERPRETATION
Majority of the respondent (37%) found Larger risk coverance as the most attracted
LIFE POLICY 75 75
BOTH 45 45
45
LIFE
POLICY
NON LIFE
75 POLICY
BOTH
25
INTERPRETATION
75% of the respondents have Life Insurance Policy while 45% have both. (The % is
81
100
SAVING
74 TOOL
TAX
SAVING
TOOL
INTERPRETATION
And 74% of the respondents have perception of Insurance being a tax saving device.
But 100% of the respondents are with the view that Insurance is a tool to protect your
family.
Yes 70 70%
No 30 30%
Insurance policy.
30%
70%
Yes
No
30% of the respondents are either not having any Insurance policy at present or their policy
is already matured.
And at present 100% of the respondents are with the view that Insurance is a tool to protect
your family.
INTERPRETATION
100
80
INTERPRETATION
80.71% of the Respondents opted for Insurance for tax saving benefits.
But all of them, i.e. 100% of the respondents have opted for insurance for their family
protection.
Satisfied 60 60%
0%
40%
60%
INTERPRETATION
60% of the respondents are more or less satisfied with their existing policy.
40% of the respondents are not satisfied with their existing policy.
In this case all of those who have taken a policy have responded.
Satisfied 45 45%
45.00%
55.00%
INTERPRETATION
45% of the respondents are satisfied with their existing service agent.
55% of the respondents are not satisfied with their existing insurance agent.
100%
INTERPRETATION
Of the sample size of 400 respondents, all the respondents are paying tax.
25
33
32
INTERPRETATION
51% of the respondents save their tax by investing in LIC, which is the highest among all
Investment. This shows that most people for getting taxes benefits invest in LIC.
Fixed Assets
75 Bank deposits
70
Securities i.e.
10
11 bonds, MFs
40 25 Shares
Insurance
INTERPRETATION
75.25% of the respondents as with the view that Fixed Assets is the best form of investment
70.5% of the respondents are with the perception that Insurance is the best form of
investment for securing their future, which is one of the highest and this shows that
Security 90 90%
Tax benefits 71. 71.%
90
INTERPRETATION
100% of the respondents intent to gain saving and returns from their investment.
Whereas, 71.75% of the respondent’s intent to gain tax benefits from their investments.
60.61%
10.10%
0%
INTERPRETATION
29% of the respondents are with the view that insurance should be bought after the age of 25
years.
10.5% of the respondents are with the view that insurance should be buyed after the age of
35 years.
Whereas, 60.5% of the respondents are with the view that buying of insurance do not have
any thing to do with age i.e. there is no age limitations. It can be purchased any time
0
10
24
67
33
26 29
INTERPRETATION
67% of the respondents have the opinion that Indian Insurance Companies have Rigid plans.
35.75% of the respondents are with the view that Indian Insurance companies are Non-
aggressive.
Satisfactory.
And according to the data, no single person has felt that it is very good.
49
82
81
71
A trusted name
Friendly service & responsiveness
Good plans
Accessibility
Friendly service & responsiveness and Accessibility are also important factors looked by
customers in a company.
Planning 87 87%
87.0%
INTERPRETATION
Only 12.5% of the customers contacted are not planning for new investments presently.
Whereas, 87.5% of the customers are still planning for new investments this can be a great
44%
Yes No Uncertain
INTERPRETATION
The interested customers i.e. 43% are ready to go for insurance even away from a city if services
and products are worthwhile, which again is a good prospect (potential) for Reliance Life
Insurance to take them on their favor.
According the survey only 42% people are insured in Alwar so reaming other part is
potential for insurance sector.
Among that 42% people who having insurance, they have insurance 40% for self 28%for
spouse 21% for children and 18% for their parents and 11% for all family member, also
its very help full for insurance sector so they should take necessary step for capture this
potential.
Only 42% people having insurance in Alwar in that 42% there are 82 % people are under
insured and other 18% people are fully insured according to their income so that is also
plus point for insurance sector to capture the market
1. Reliance Life Insurance should give more attention on its Quality and method of
Recruitment & Selection because it helps the company in reducing attrition rate and selecting the
right candidate to serve the company for a long period.
2. Reliance Life Insurance should give more advertisement in Magazines & Newspapers
regarding the New Hire Process and New Recruitments.
3. Reliance Life Insurance should maintain the communication through feedback. They should
take time-to-time feedback regarding customer satisfaction to know about the customer
perception about their insurance products.
5. Reliance Life Insurance should find out the factors for which the customers are purchasing
their policies. This will help it in making appropriate message in advertisement so that that
advertisement will much focused and targeted and may attract excellent candidates to serve the
company.
6. Reliance Life Insurance which prefer remote areas also for selling its policies must hire from
there to due to localize expertise.
7. Reliance Life Insurance should make the provision for change in Recruitment & Selection
Methodology with the advent of time and newer technology.
8. Reliance Life Insurance should provide all details related to any promotions, company
schemes and Packages at the time of Final Selection.
9. The person conducting the Interview should make sure that candidate being interviewed shows
better ability to listen, understand and answer queries.
10. Reliance Life Insurance should ensure that the company is innovative and introduces new
products to meet new customer’s needs and keeps on check with the competitors too.
Our exhaustive research in the field of Life Insurance threw up some interesting trends which
can be seen in the above analysis. A general impression that we gathered during Data collection
was the immense awareness and knowledge among people about various companies and their
insurance products. People are beginning to look beyond LIC for their insurance needs and are
People in general have been impression by the marketing and advertising campaigns of insurance
companies. A high penetration of print , radio and Television ad campaigns over the years is
The general satisfaction levels among public with regards to policy and agents still requires
improvement. But therein lays the opportunity for a relative new comer like ING. LIC has never
been known for prompt service or customer oriented methods and Reliance can build on these
factors.
1. BOOKS/MAGAZINES REFFERED:
Money Outlook
2. WEBSITES REFFERED:
http://www.lifeinscouncil.org/
http://money.outlookindia.com/article.aspx?266705
http://www.scribd.com/search?cat=redesign&q=reliance+life+insurance&x=0&
y=0
http://www.reliancelife.com/rlic/AboutUs/our_founder.aspx
http://en.wikipedia.org/wiki/Reliance_Life_Insurance
3. REPORTS/ARTICLES REFFERED:
4. Telephone Numbers