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Industrial Project Report On RELIANCE LIFE INSURANCE COMPANY LIMITED

Industrial Project Report On RELIANCE LIFE INSURANCE COMPANY LIMITED Under the guidance of Mrs Pragyan Pushpanjali

Under the guidance of Mrs Pragyan Pushpanjali

Submitted by:-

Priyadarshani Kumari Imba, 6th sem

R.no-25

CUJ/I/2010/IMBA/28

[1]

ACKNOWLEDGEMENT

"Gratitude is not a thing of expression; it is more matter of feeling."

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 gratitude towards people who helpful me in successfully completing of my training.

I would like to express my deep gratitude to our Head of Department of Business Administration Prof. T.Ghoshal for providing me an opportunity to work on this Industrial Project on Insurance Industry. I would also thank our guide Assistant Prof. Pragyan Pushpanjali who always gave valuable suggestion throughout the pursuance of this project.

Above all no words can express my feelings to my parents, friends and all those persons who supported me during my project.

[2]

CONTENTS

S.No.

Particulars

Page No.

1

Insurance overview

5-17

Meaning of Insurance

5

Importance of Insurance

5-6

Principles of Insurance

6-7

Insurable laws

7

History of Insurance

8

Time line in Insurance history

9

Types of insurances

9-10

World existence and Indian existence

10-12

12

Insurance law regulations in India

12

Entry of private companies: A landmark

decision

12-13

Regulatory authorities

14

Meaning of Life Insurance

14-15

History of Life Insurance

Key features of Life Insurance

15-16

Benefits of Life Insurance

16-17

Role of Life Insurance in the growth of economy

17

2

Insurance in India

17-21

Insurance companies

18-19

Top Insurance Policies

19-21

India insurance industry major problems

21

3

INTRODUCTION TO THE COMPANY

22-28

Executive Summary

22

About Reliance Life Insurance

22

History

23

Achievement

23

Role of IT at Reliance Life Insurance

23-25

Mission

25

Core Values

25

Future Plans

26

Head Office

26

26

Branches

27-28

Benefits of Reliance Life Insurance Policies

4

Product mix

29-40

Solutions for Individuals

29-31

Solutions for group

32-33

Traditional Plans

33-37

Unit linked Plans

38-40

5

Comparative Analysis

41-48

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Why Compare Best Life Insurance Policies in

41

India

41-42

Why Compare Best Life Insurance Plans in

India

42-43

Comparative Analysis Of Top 10 Life

Insurance Companies

43-44

Subsequent Growth rate in insurance

industry

44-46

Insurance industry contribution to GDP

47

Comparing Reliance Life Insurance, Max

New York Life Insurance, MetLife Insurance

48

Comparing LIC, Reliance Life Insurance, ICICI Prudential Life Insurance

6

Research objective

49

Research Methodology

49-50

Research Design

50

Research constraints

51

7

Benefits of this project

51

8

Compare reliance child life insurance and LIC komal jeevan

52-55

9

Market share of Life Insurance industry

56-57

10

Capital fund of life insurance industry

58

11

Distribution channel

59-60

12

Promotional Programmes & Target Segment

60

13

Findings and Conclusions

61

14

 

Swot Analysis

62

15

Recommendations/Suggestions

63

16

 

Limitations

64

17

Bibliography and References

65

[4]

Insurance:- An overview

Insurance is a form of risk management primarily used to safeguard against the risk of an uncertain loss.

In general an insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium.

The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

MEANING OF INSURANCE

Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is a collective bearing of risk. Insurance is a financial device to spread the risks and losses of few people among a large number of people, as people prefer small fixed liability instead of big uncertain and changing liability.

Insurance can be defined as a “legal contract between two parties whereby one party called

insurer undertakes to pay a fixed amount of money on the happening of a particular event, which may be certain or uncertain.” The other party called insured pays in exchange a fixed sum known as premium.

Insurance is desired to safeguard oneself and one’s family against possible losses on account

of risks and perils. It provides financial compensation for the losses suffered due to the

happening of any unforeseen events.

IMPORTANCE OF INSURANCE

Insurance constitutes one of the major segments of the financial market. Insurance services play predominant role in the process of financial intermediary. Today insurance industry is one of the most growing sectors in India. There is lot of potential in the Indian Insurance Industry.

There are many issues, which require study. The scope of the study of insurance industry of India would be very great as there are on-going developments in the industry after the opening of the sector.

The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. Government may in near future allow 49% FDI in Insurance. This would lead to more capital inflow by foreign partners.

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Another major issue is the effects on LIC after the entry of private players in the market. Though market share of LIC has been affected, it has improved in terms of efficiency.

There are number of other hot topics like penetration of Health Insurance Rural marketing of insurance, new distribution channels, new product ranges, insurance brokers’ regulation, incentive scheme of development officers of LIC etc. So it offers lot of scope for studying the insurance industry.

Right now the insurance industry has great opportunities in a country like India or China which huge population. Also the penetration of insurance in India is very low in both life and

Non-life segment so there is lot potential to be tapped.

Before starting the discussion on insurance industry and related issues, we have to start with the basics of insurance. So first we understand what is insurance? How the word

‘insurance’ is different from the word ‘assurance’? Etc.

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance. (1) Principle of “Uberrima Fides” or Principle of utmost good faith

It means “maximum truth”. Both the parties should disclose all material information

regarding the subject matter of insurance.

(2) Principle of indie

This means that if the insured suffers a loss against which the policy has been made, he shall be fully indemnified only to the extent of loss. In other words, the insured is not entitled to make a profit on his loss.

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of

claims in so far as the insured’s right of recovery from an alternative source is involved. The

insurer before the settlement of the claim may exercise the right. In other words, the insurer is entitled to recover from a negligent third party any loss payments made to the insured. The purposes of subrogation are to hold the negligent person responsible for the

loss and prevent the insured from collecting twice for the same loss. The concept of ‘Third

Party Claims’ is based on the same principle.

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation.

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(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured. Insurable interest is that interest which considerably alters the position of the assured in the event of loss taking place and if the event does not take placed, he remains in the same old position.

Insurable laws:-

Insurance law is the practice of law surrounding insurance, including insurance policies and claims. It can be broadly broken into three categories - regulation of the business of insurance; regulation of the content of insurance policies, especially with regard to consumer policies; and regulation of claim handling.

Until 2005 all, common law jurisdictions require the insured to have an insurable interest in the subject matter of the insurance. An insurable interest is that legal or equitable relationship between the insured and the subject matter of the insurance, separate from the existence of the insurance relationship, by which the insured would be prejudiced by the occurrence of the event insured against, or conversely would take a benefit from its non- occurrence.

Utmost good faith

A strict duty of disclosure and good faith applies to selling most financial products that contributed to the Global Financial Crisis.

The Doctrine of utmost good faith - is present in the insurance law of all common law systems. An insurance contract is a contract of utmost good faith. The most important expression of that principle, under the doctrine as it has been interpreted in England, is that the prospective insured must accurately disclose to the insurer everything that he knows and that is or would be material to the reasonable insurer. Something is material if it would influence a prudent insurer in determining whether to write a risk, and if so upon what terms. If the insurer is not told everything material about the risk, or if a material misrepresentation is made, the insurer may avoid (or "rescind") the policy, i.e. the insurer may treat the policy as having been void from inception, returning the premium paid.

Warranties

In commercial contracts generally, a warranty is a contractual term, breach of which gives right to damages alone; whereas a condition is a subjectivity of the contract, such that if the condition is not satisfied, the contract will not bind. By contrast, a warranty of a fact or state of affairs in an insurance contract, once breached, discharges the insurer from liability under the contract from the moment of breach; while breach of a mere condition gives rise to a claim in damages alone.

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HISTORY OF INSURANCE

The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders used to bear risk of the carvan by giving loans, which were later repaid with interest when the goods arrived safely.

The concept of insurance as we know today took shape in 1688 at a place called Lloyd’s

Coffee House in London where risk bearers used to meet to transact business. This coffee

house became so popular that Lloyd’s became the one of the first modern insurance

companies by the end of the eighteenth century.

Marine insurance companies came into existence by the end of the eighteenth century. These companies were empowered to write fire and life insurance as well as marine. The Great Fire of London in 1966 caused huge loss of property and life. With a view to providing fire insurance facilities, Dr. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office.

The early history of insurance in India can be traced back to the Vedas. The Sanskrit term ‘Yogakshema’ (meaning well-being), the name of Life Insurance Corporation of India’s corporate headquarters, is found in the Rig Veda. The Aryans practiced some form of

‘community insurance’ around 1000 BC.

Life insurance in its modern form came to India from England in 1818. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. The insurance companies, which came into existence between 1818 and 1869, treated Indian lives as subnormal and charged an extra premium of 15 to 20 percent. The first Indian insurance company, the Bombay Mutual Life Assurance Society, came into existence in 1870 to cover Indian lives at normal rates.

The Insurance Act, 1938, the first comprehensive legislation governing both life and non-life branches of insurance were enacted to provide strict state control over insurance business. This amended insurance Act looked into investments, expenditure and management of these companies.

By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75 provident societies carrying on life insurance business in India. Insurance business flourished and so did scams, irregularities and dubious investment practices by scores of companies. As a result the government decided to nationalize the life assurance business in India. The Life Insurance Corporation of India (LIC) was set up in 1956. The nationalization of life insurance was followed by general insurance in 1972.

[8]

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

  • 1818 British introduced the life insurance to India with the establishment of the Oriental Life Insurance Company in Calcutta.

  • 1850 Non-life insurance started with Triton Insurance Company.

  • 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer.

  • 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business.

  • 1938 The Insurance Act was enacted.

  • 1956 Nationalization took place. Government took over 245 Indian and foreign insurers and provident societies.

  • 1972 Non-life business nationalized, General Insurance Corporation (GIC) came into being.

  • 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R. N. Malhotra to draw a blue print for insurance sector reforms.

  • 1994 Malhotra committee recommended re-entry of private players.

  • 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of the insurance market in India.

  • 2000 IRDA started giving license to private insurers. ICICI Prudential, HDFC were first private players to sell insurance Policies.

  • 2001 Royal Sundaram was the first non-life private player to sell an insurance policy.

  • 2002 Bank allowed selling insurance plans as TPAs enter the scene, insurers start setting non-life claims in the cashless mode.

Types of insurances:-

Life insurance is an insurance coverage that pays out a certain amount of money to the insured or their specified beneficiaries upon a certain event such as death of the individual who is insured. This protection is also offered in a Family take-up plan, a Sharia-based approach to protecting you and your family.

The coverage period for life insurance is usually more than a year. So this requires periodic premium payments, either monthly, quarterly or annually.

  • The risks that are covered by life insurance are:

    • Premature

    • Income during retirement

    • Illness

  • The main products of life insurance include:

    • Whole life

    • Endowment

  • [9]

    • Term

    • Investment-linked

    • Life annuity plan

    • Medical and health

    General Insurance

    General insurance is basically an insurance policy that protects you against losses and damages other than those covered by life insurance. For more comprehensive coverage, it is vital for you to know about the risks covered to ensure that you and your family are protected from unforeseen losses.

    The coverage period for most general insurance policies and plans is usually one year, whereby premiums are normally paid on a one-time basis.

    The risks that are covered by general insurance are:

    • Property loss for example, stolen car or burnt house

    • Liability arising from damage caused by yourself to a third party

    • Accidental death or injury

    The main products of general insurance include:

    • Motor insurance

    • Fire/ House owners/ Householders insurance

    • Personal accident insurance

    • Medical and health insurance

    • Travel insurance

    Insurance:- World existence and Indian existence

    The global insurance scenario has undergone profound changes during the last few years, accentuated by the terrorist attack on the World Trade Centre on 9/11/2001. Coincidentally, the major world stock markets suffered a steep decline in value towards the end of the last century, following the dot Com bubble burst and the unprecedented corporate scandals led by Enron and WorldCom. Hurricanes like the Katrina, the Wilma and the others, in addition, have bankrupted a substantial capitalization of insurers and reinsurers built up over decades. One estimate has put it that out of a total capitalization of $750 bn the WTC attack and the stock market failures due to the burst of dot com bubble alone wiped out a capital of $ 250 bn of the industry in one stroke.

    These financial blows have resulted in a large number of insurers/reinsurers going bankrupt and several others suffering lowered ratings by reputed rating agencies. Despite these

    [10]

    setbacks the industry has recovered from such serious and unexpected financial losses and the industry has begun to look as solid and resilient as ever.

    The world insurance premium in 2005 was estimated at $3400 bn by Swiss Re. Sigma. 60% of the premium came from life insurance. The world’s population in 2005 was estimated at 6450 mn and it’s GDP at $ 44,450 bn. The life insurance market is growing faster in the emerging markets due to rising incomes and a growing younger working population.

    It was also observed that the GDPs grew faster than the insurance premiums, both life and non-life, reducing the levels of insurance penetration (IP) in comparison with those of 2004. The combined ratio for the developed markets was slightly above 100% and the industry showed strong profitability. Insurance penetration is measured as the percentage ratio of premiums to GDP. Insurance density is measured as the gross premiums to population per capita. These measurements on a comparative basis show the insurance progress and sophistication of the insurance markets.

    In 2004, global insurance premiums amounted to $3.3 trillion. The global insurance market grew by 7.6% in 2007 to reach a value of $3,688.9 billion. In 2012, the global insurance market is forecast to have a value of $4,608.5 billion, an increase of 24.9% since 2007. Life insurance dominates the global insurance market, accounting for 59.7% of the market′s value.

    Insurance scenario in india:- Latest reports:-

    Premium collection by general insurance companies increased by 24.7 per cent year-on-year in September 2012 at Rs 6, 059.02 crore (US$ 1.1 billion), according to the data compiled by the sector regulator Insurance Regulatory and Development Authority (IRDA). The total premium stood at Rs 34,001.09 crore (US$ 6.18 billion) for April-September 2012.

    In terms of premium collections for life insurance segment, private players collected Rs 7,095 crore (US$ 1.29 billion) in April-September 2012 period while state-owned Life Insurance Corp of India (LIC) recorded a remarkable 24 per cent y-o-y growth in premium

    collections at Rs 15, 532.7 crore (US$ 2.82 billion) during the period. LIC’s support helped

    the industry post a 15 per cent y-o-y growth in premium collected in the first half of

    2012-13.

    With a huge population base and large untapped market, insurance industry is a big opportunity area in India for national as well as foreign investors. India is the fifth largest life insurance market in the emerging insurance economies globally and is growing at 32-34% annually. This impressive growth in the market has been driven by liberalization, with new players significantly enhancing product awareness and promoting consumer education and information. The strong growth potential of the country has also made international players

    [11]

    to look at the Indian insurance market. Moreover, saturation of insurance markets in many developed economies has made the Indian market more attractive for international insurance player

    Insurance law regulations in India

    Insurance law regulations in India manage all the matters related to various insurance companies in the country. The concept of insurance in India dates back to the ancient period. The idea of getting anything insured gained its momentum from the overseas traders who used to practice marine insurance in somewhat crude form. Social insurance was the first of its kind which took shape in India. Since its introduction, the history of insurance in India has undergone many phases. Earlier, the insurance companies in India were privatized.

    Entry of private companies: A landmark decision

    In the later years, insurance companies were nationalized with the help of insurance laws. In the most recent move in this regard, the Insurance law regulations in India permitted the entry of private companies and foreign investment in the sector. This remarkable decision gave the industry a breath of fresh air. Much of the development and growth of the insurance sector in India owes to the decision of the government to nationalize the insurance business in India and to allow private and foreign insurance companies to establish their business in the country.

    Regulatory authorities:-

    There are 4 regulatory authorities which oversee different functioning of the insurance companies in India and provide guidelines to them. These include:

    • Insurance Regulatory and Development Authority (IRDA)

    • Tariff Advisory Committee

    • Ombudsmen

    • Insurance Association of India

    Insurance Regulatory and Development Authority (IRDA)

    Insurance Regulatory and Development Authority (IRDA) is a very powerful body which oversees important aspects of the functioning of the insurance companies in India. It was set up by the government to safeguard the interest of the insurance policy holders of the country.

    Some of the important powers, duties and functions of Insurance Regulatory and Development Authority (IRDA) include:

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    • To regulate, ensure and promote the orderly growth of the insurance business

    • To prescribe regulations on the investment of funds by insurance companies

    • To regulate the maintenance of the margin of solvency

    • To adjudicate the disputes between insurers and intermediaries

    • To supervise the functioning of the Tariff Advisory Committee

    Tariff Advisory Committee

    The prime duty of Tariff Advisory Committee is to regulate and control the rates, benefits, terms and conditions offered by the insurance companies working in India.

    Insurance Association of India:

    All the insurance companies functional in India are members of the Insurance Association of India. It has 2 councils under its patronage. These are known as:

    • Life Insurance Council

    • General Insurance Council

    Ombudsmen

    Ombudsmen play important role in regulating and ensuring smooth functions of the insurance companies. They are appointed to address all complaints relating to settlements of claims. Anyone having a grievance against an insurance company can approach Ombudsmen for redressed.

    An ombudsman is an official, usually appointed by the government or by parliament but with a significant degree of independence, who is charged with representing the interests of the public by investigating and addressing complaints of maladministration or violation of rights.

    [13]

    MEANING OF LIFE INSURANCE

    There are three parties in a life insurance transaction: the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person.

    Another important person involved in a life insurance policy is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured.

    Life insurance may be divided into two basic classes term and permanent

    • Term life insurance provides for life insurance coverage for a specified term of years for a

    specified premium. The policy does not accumulate cash value.

    Permanent life insurance is life insurance that remains in force until the policy matures, unless the owner fails to pay the premium when due.

    • Whole life insurance provides for a level premium, and a cash value table included in the

    policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits; guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy.

    • Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account.

    HISTORY OF LIFE INSURANCE

    Risk protection has been a primary goal of humans and institutions throughout history. Protecting against risk is what insurance is all about. Over 5000 years ago, in China, insurance was seen as a preventative measure against piracy on the sea. Piracy, in fact, was so prevalent, that as a way of spreading the risk, a number of ships would carry a portion of another ship's cargo so that if one ship was captured, the entire shipment would not be lost.

    In another part of the world, nearly 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 2100BC, the Code of Hammurabi granted legal status to the practice. It formalized concepts of “bottom” referring to vessel bottoms and “respondent” referring to cargo. These provided the underpinning for marine insurance

    contracts. Such contracts contained three elements: a loan on the vessel, cargo, or freight; an interest rate; and a surcharge to cover the possibility of loss. In effect, ship owners were the insured and lenders were the underwriters.

    [14]

    Life insurance came about a little later in ancient Rome, where burial clubs were formed to cover the funeral expenses of its members, as well as help survivors monetarily. With Rome's fall, around 450 A.D., most of the concepts of insurance were abandoned, but aspects of it did continue through the Middle Ages, particularly with merchant and artisan guilds. These provided forms of member insurance covering risks like fire, flood, theft, disability, death, and even imprisonment.

    During the feudal period, early forms of insurance ebbed with the decline of travel and long- distance trade. But during the 14th to 16th centuries, transportation, commerce, and insurance would again re-emerge.

    Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form of “community insurance" was prevalent around 1000 BC and practiced by the Aryans.

    And similar to ancient Rome, burial societies were formed in the Buddhist period to help families build houses, and to protect widows and children.

    KEY FEATURES OF LIFE INSURANCE

    1) Nomination: -

    When one makes a nomination, as the policyholder you continue to be the owner of the policy and the nominee does not have any right under the policy so long as you are alive. The nominee has only the right to receive the policy monies in case of your death within the term of the policy.

    2) Assignment:-

    If your intention is that your policy monies should go only to a particular person, you need to assign the policy in favour of that person.

    3) Death Benefit: -

    The primary feature of a life insurance policy is the death benefit it provides. Permanent policies provide a death benefit that is guaranteed for the life of the insured, provided the premiums have been paid and the policy has not been surrendered.

    4) Cash value: -

    The cash value of a permanent life insurance policy is accumulated throughout the life of the policy. It equals the amount a policy owner would receive, after any applicable surrender charges, if the policy were surrendered before the insured's death.

    [15]

    5) Dividends: -

    Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company's divisible surplus.

    6) Paid-Up Additions: -

    Dividends paid to a policy owner of a participating policy can be used in numerous ways, one of which is toward the purchase of additional coverage, called paid-up additions.

    7) Policy Loans: -

    Some life insurance policies allow a policy owner to apply for a loan against the value of their policy. Either a fixed or variable rate of interest is charged. This feature allows the policy owner an easily accessible loan in times of need or opportunity.

    8) Conversion from Term to Permanent: -

    When in need of temporary protection, individuals often purchase term life insurance. If one owns a term policy, sometimes a provision is available that will allow her to convert her policy to a permanent one without providing additional proof of insurability.

    9) Disability Waiver of Premium

    Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an additional cost. It guarantees that coverage will stay in force and continue to grow

    BENEFITS OF LIFE INSURANCE

    1) Risk cover: -

    Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of the future.

    2) Tax Deduction: -

    Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to one lakh rupees. Life Insurance policies thus decrease the total taxable income of an individual.

    3) Loans: -

    An individual can easily access loans from different financial institutions by pledging his insurance policies.

    [16]

    4) Retirement Planning: -

    What had provided protection against the financial consequences of premature death may now be used to help them enjoy their retirement years. Moreover the cash value can be used as an additional income in the old age.

    5) Educational Needs: -

    Similar to retirement planning the cash values that flow from one’s life insurance schemes

    can be utilized for educational needs of the insurer or his children.

    ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

    The Life Insurance Industry has an enviable track record among public sector units. It has a Consistent profit and dividend paying record accompanied by a steady growth in its financial resources.

    Through investments in the Government sector and socially- oriented sectors the Industry has contributed immensely to the nation's development. The industry is recognized as one of the largest financial Institutions in the country. The ventures initiated by the industry in the areas of Mutual Fund, Housing Finance has done exceedingly well in recent years.

    To protect the country's foreign exchange reserves, the reinsurance arrangement are so organized that maximum retention is made possible within the country while at the same time protecting interests of the policy holders.

    Insurance in India

    The Confederation of Indian Industry states that the insurance sector of the country has

    been witnessing a consistent growth rate of late and its present worth is dollars.

    41

    billion US

    The industry has of late achieved a yearly growth rate within 32 and 34 percent and this makes it the 5th best among emerging economies around the world. The various entities of the industry are also bringing out newer products on a regular basis to attract their customers.

    As per rules, the upper limit of foreign direct investment permitted in this sector is 26 percent. However, this has to be done through the automatic route and the investor needs a license from Insurance Regulatory and Development Authority (IRDA).

    At present there are 22 life insurers in India. The IRDA has recently taken away the tariffs of the interest rates and this has provided insurers greater independence when it comes to deciding the price of their insurance policies. The insurance industry has also become more competitive as a result.Yet another important factor affecting this sector has been the recent financial meltdown.

    [17]

    Insurance companies in India:- Public Sector

    Government of India Fully owned 4 companies:

    • National Insurance Co Ltd (public sector)

    • New India Assurance Co Ltd (public sector)

    • Oriental Insurance Co Ltd (public sector)

    • United India Insurance Co Ltd (public sector)

    Private Sector

    • Bajaj Allianz General Insurance

    • Bharti AXA General Insurance

    • Cholamandalam MS

    • Future General India Insurance

    • HDFC ERGO General Insurance

    • ICICI Lombard

    • IFFCO Tokyo

    • Liberty Videocon General Insurance Co Ltd

    • L & T General Insurance

    • Magma HDI General Insurance Co Ltd

    • Raheja QBE General Insurance

    • Reliance General Insurance

    • Royal Sundaram

    • SBI General Insurance

    • Shriram General Insurance

    • Tata AIG General

    • Universal Sompo General Insurance

    • Star allied

    Standalone health insurance companies Private Sector

    • Apollo Munich Health Insurance

    • Max Bupa Health Insurance

    • Religare Health Insurance Company Ltd

    • Star Health and Allied Insurance company Ltd

    • Ggsbs private insurance Ltd

    Public Sector

    [18]

    Government of India Fully owns 1 company:

    • Life Insurance Corporation of India

    Private Sector

    • AEGON Religare Life Insurance

    • Aviva Life Ia-life

    • Bajaj Allianz Life Insurance

    • Bharti AXA Life Insurance Co Ltd

    • Birla Sunlife

    • Canara HSBC Oriental Bank of Commerce Life Insurance]

    • Star Union Dai-ichi Life Insurance

    • DLF Pramerica Life Insurance

    • HDFC Standard Life Insurance Company Limited

    • ICICI Prudential

    • IDBI Federal Life Insurance

    • India First Life Insurance Company

    • ING Vysya Life Insurance

    • Kotak Life Insurance

    • Max Life Insurance

    • PNB MetLife India Life Insurance

    • Reliance Life Insurance Company Limited

    • Sahara Life Insurance

    • SBI Life Insurance Company Limited

    Top Insurance Policies

    Following are the featured insurance policies of various insurers in India:

    Company

    Product

    LIC

    Jeevan Vaibhav

    ICICI Prudential

    ICICI Pru iCare

    Reliance General Insurance

    Reliance Private Car Insurance Reliance Travel Care for Students

    Bajaj Allianz

    Cash Rich Family Floater Health Guard Plan Car insurance

    HDFC Life

    Click2Protect

    HDFC LIFE SMART WOMAN PLAN

    Tata AIG Insurance

    Tata AIG Motor Insurance Tata AIG Travel Insurance Tata AIG Wellsurance Family

    Kotak Life Insurance

    Kotak Assured Protection Plan Kotak Assured Income Plan

    [19]

     

    Kotak Assured Investment Plan

    Aviva

    Aviva Health Secure Aviva i-Life

    Future General

    Future General Smart Life Future General Health Suraksha

    MetLife

    Retirement Plans Met Monthly Income Plan

    Star Union Dai-ichi Life Insurance

    Suraksha Kavach

    Shriram Life Insurance

    Shri Life Wealth Plus Money Back Shriram Ujjwal Life SP

    Bharti AXA

    Bharti AXA Life eProtect

    Aegon Religare

    iTerm

    IDBI Federal

    Termsurance

    Wealthsurance

    Childsurance

    Lifesurance

    Healthsurance

    Incomesurance

    Loansurance

    Homesurance

    Bondsurance

    Microsurance

    Canara HSBC OBC Life Insurance

    Dream Smart Plan Grow Smart Plan Future Smart Plan Secure Smart Plan Smart Sanchay Plan

    DLF Pramerica Life Insurance

    Income Rakshak DLF Pramerica Family Income DLF Pramerica Family First DLF Pramerica U-Protect

    IndiaFirst Life Insurance

    IndiaFirst Maha Jeevan Plan

    Sahara Life Insurance

    Sahara Vatsalya-Jeevan Bima

    Apollo Munich Health Insurance

    Optima RESTORE

    Star Health Insurance

    Family Health Optima Star Unique Health Senior Citizen Health Insurance

    IFFCO TOKIO General Insurance

    Auto Protector Policy Individual Medishield Policy

    New India Assurance

    Householder's Policy Motor Insurance Policy

    [20]

     

    Overseas Mediclaim Policy Fire & Machinery Policy Industrial All Risk Policy Shopkeeper's Policy

    Oriental Insurance

    Oriental's Motor Insurance Policy Happy Family Floater Scheme

    National Insurance

    Car Insurance

    Cholamandalam MS General Insurance

    Chola MS Private Car Chola MS Student Travel Chola MS Family Healthline

    HDFC Ergo

    Travel Insurance HDFC Ergo Health Suraksha

    Universal Sompo General Insurance

    Householder's Insurance Policy Shopkeeper's Insurance Policy Motor Insurance Policy Individual Health Bills

    L&T Insurance

    my:health Medisure Prime Insurance

    India insurance industry major problems

    Following are some of the major problems plaguing the insurance industry in India:

    Focus on actuarial pricing

    Regulatory misunderstanding

    Investment regulations

    Solvency regulation

    Claims settlement procedures

    Data clarity

    Distribution channel issues

    [21]

    RELIANCE LIFE INSURANCE

    EXECUTIVE SUMMARY

    Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100 percent shareholding in AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance Company Limited is officially launched on February 1, 2006. This was after obtaining the required regularity approvals from the Registrar of Companies and the Insurance Regulatory and Development Authority. Reliance Life Insurance is the part of the Reliance Capital.

    Reliance Life Insurance has plenty of plans on the anvil. It has also 118 branches, with strong presence in South and a bouquet of products catering savings protection and investment need of individuals and corporate. The head-office of it is at Chennai.

    The company has already added 600 employees in addition to the 1000 plus staff of the erstwhile AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance aims to be

    the consumer’s preferred life insurer by understanding and meeting his needs.

    Think Bigger, Think Better!

    ABOUT RELIANCE LIFE INSURANCE

    Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s 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 steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate.

    [22]

    HISTORY

    Reliance Capital Limited announced the launch of its life insurance business on February 1, 2006. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority.

    It was in August 2005 that the ball was set rolling when Reliance Capital Limited, the financial arm of Reliance Anil Dhirubhai Ambani Group (ADAG) announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited; and the formal transfer of shares took place in October 2005.

    The company will issue all policy contracts under the Reliance Life Insurance Company limited name. All the existing policy contracts also stand transferred to the Reliance Life Insurance entity with all the original contractual terms and commitments intact.

    ACHIEVEMENTS

    • Largest Private Life Insurance in terms of Number of Policies for two consecutive years as of 31st March 2012

    • A wide network of 1230 branches and 1,50,000 advisors Over 9 million policies

    • RLIC continues to be amongst the foremost Life Insurance companies in India to be certified ISO 9008:2001

    • Winner of “Best Non-Urban Coverage” Award at Indian Insurance Awards 2011

    • RLIC’s Boundaries for Books Campaign won the 'Silver' at the Indian Digital Media Awards (IDMA) 2012, under Best Integrated Campaign Social Cause and Best Use of Social Network Social Cause

    • Amongst the top 3 Most Trusted Service Brands in the Insurance category as per the Brand Equity‘s ‘Most Trusted Service Brands 2011’ Survey

    ROLE OF INFORMATION TECHNOLOGY AT RELIANCE LIFE INSURANCE

    1) World Class Data Centre: -

    They plan to establish a Primary Data Centre at Navi Mumbai (Dhirubhai Ambani Knowledge City) which will cater to their company needs across India, with fail-over capability to their Chennai Data Centre with in the same business day in occurance if an incident or Disaster happens.

    2) Inter Office Connectivity: -

    All their Branch / Area and Regional offices will be Inter connected to their Data Centre with a 24x7 access to Core Applications like Lotus Mail, Life-Asia and Internet Applications. This will enable their associates to work faster and better with high-speed Internet connectivity and also ensure faster Turnaround Time for their customers.

    [23]

    3) Customer Care Centre: -

    They will host a centralized Customer Care Centre at Dhirubhai Ambani Knowledge City at Navi Mumbai, which cater services to internal and external queries and complications. A customer Relationship Management Tool (CRM) and Lead Management System (LMS) are in progress.

    4) Web Portal: -

    This portal will be an interface between both internal employees and their external users. Some of the functions included in their portal are Policy Tracking Systems, Corporate News, Quality Checking System, Under Writing Medical System, and Agent Management System etc.

    5) R World:-

    Reliance Mobile R-World will provide online information about their Company, Products, and Policy Services to their existing customers, Agents/Advisors and Lead Generators.

    6) SMS Alerts: -

    SMS Alerts will be provided to their Sales Managers about the latest happenings like Contests and Campaigns, Employee Alerts will include Company News and Welcome/Birthday/Anniversary message etc. Customer Alerts will include Welcome/Birthday/Anniversary message, Policy Dispatch Details, Policy Servicing SMS like Premium Receipt and Renewal Premium reminders etc.

    7) Life and Group Asia: -

    Single Life and Group Life details will be captured and managed by Life and Group Asia. A common middleware between these applications will enable Group Life Customers to view their individual Single Life Insurance Plan details taken with Reliance Life Insurance and vice versa.

    8) Advisor Lounge: -

    It is a dedicated area for Reliance Life Insurance Agents/Advisors in all the branches across India. This Lounge will be equipped with desktops and printers with Internet connectivity, where their Advisors can bring in the prospects and can have discussions across the table and they can create and print quotes. The Agents/Advisors can use this area to service their existing customers.

    9) Document Management System: -

    DMS will enable both policy issuance and contract servicing through an automated workflow, which yields a faster Turnaround Time to both internal and external users. This

    [24]

    application will enable them to have a paperless office and thus mitigate the risk of losing vital records/papers.

    10) Wireless Data Access: -

    This will enable identified Top Sales Managers and Top Advisors to access real time data for both LMS and CRM on the fly through Handheld PDA device.

    11) SAP ERP Modules: -

    SAP (Finance and HR Modules), will automate the Expense, Travel and Leave Management Systems

    Vision

    Empowering everyone live their dreams.

    Mission

    Create unmatched value for everyone through dependable, effective, transparent and profitable life insurance and pension plans.

    Our Goal

    • Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below:

    • Emerge as transnational Life Insurer of global scale and standard

    • Create best value for Customers, Shareholders and all Stake holders

    • Achieve impeccable reputation and credentials through best business practices.

    CORE VALUES

    Reliance Life Insurance Company Limited has some core values which are listed as follows:

    1) Result Oriented

    2) Performance Driven

    3) Customer Focused

    4) Learning and Development Oriented

    5) Employee Centric

    6) Informal and Fun

    [25]

    FUTURE PLANS

    • Forty-four new branches to be opened across the country in the coming months; and a pan India presence with 162 branches in the coming year.

    • A state-of-the-art customer care centre will provide continuous, responsive services to the caller and promptly address queries, collate feedback and suggestions from the caller, who may be both prospective and existing clientele and from channel partners in Chennai and Mumbai.

    • It will be launching additional products aimed at providing unparalleled service to its valued clientele.

    HEAD OFFICE

    Reliance Life Insurance Company Limited, The Trapezium, 39, First Floor, Nelson Manickam Road, Chennai 600 029.

    BRANCHES

    They have so many branches and substations in the India. They have around 160 branches in the India. And they have planned to open more branches across the country in the coming months.

    •Branches located in Ranchi

    Balbir Complex, Ground Floor, Main Road, Adjacent to Web World, Hinoo, Ranchi,

    Jharkhand-834002

    Phone no.-0651-3207112/0651-3207114

    Office No.501 A, Panchvati Plaza,Kutchery Road, Ranchi, Jharkhand-834001

    0651-3982417/0651-3982418

    [26]

    Benefits of Reliance Life Insurance Policies

    The name “Reliance” is very popular in telecom sector, but its rapid growth in every

    sphere no matter whether it is Real estate, financial sector, or insurance sector, is not

    unknown to anyone. That is the reason when India’s corporate sector came into lime

    light globally, the Reliance Pvt. Ltd. Company stood at the third position, among those

    corporate companies, which has helped Indian economy to boom its financial services, and is still maintaining the name and fame of being the fastest growing Corporate Company of India which is spreading its root of success globally.

    The Reliance life insurance Pvt. Ltd. Company is the joint venture of Anil Dhirubhai Ambani Group and Indian finance, insurance group, which has teamed up around five years back and made a commendable success when over 1.5 million people connected with Reliance life insurance Company while buying its varies life insurance policies.

    While recording this tremendous growth in the Company’s success graph, the owner of Reliance Life insurance company (Mr. Ambani) expanded the branches of Reliance Life Insurance Company, and today, it has 800 branches only in India, where approximately 60,000 advisers are working. The Reliance Life Insurance Company is a trusted name, and the fact that it is the only ISO 9001:2000 certified Company further proves it well. From child plans to retirement plans, protection plans to savings and investment plans one can choose any policy of Reliance Life Insurance for the better assurance of future savings.

    Here are the name of Reliance Life Insurance Products and policies:

    Reliance Child’s Super Invest Assure Policy and Reliance Secure Child Policy best cope up with your child’s future expenditure on studies.

    However, if you want to take a health plan then, the Reliance Wealth + Health Policy is the best choice.

    Moreover, there are various protection plans that covers life log insurance, like

    1) Reliance Connect 2 Life

    2) Reliance Credit Guardian Plan

    3) Reliance Term Plan

    4) Reliance Special Term Plan

    5) Reliance Simple Term Plan

    6) Reliance Special Credit Guardian Plan

    7) Reliance Whole Life Plan

    [27]

    In addition, apart from protection plans, pension and retirement plans are even beneficial, which promises higher return along with the flexibility of the policy. These plans are

    1)

    Reliance Super Automatic Investment Plan

    2)

    Reliance Super Golden Years Plan Plus

    3)

    Reliance Money Guarantee Plan

    4)

    Reliance Super Golden Years Plan

    5)

    Total Investment Plan II Pension

    Moreover, if you want to invest your money in the market to get higher returns or just want a savings plan than following policies will suit you best.

    Reliance Special Endowment Plan

    Reliance Super Invest Assure Plus Plan

    Reliance Money Guarantee Plan

    Reliance Super Golden Years Plan Value

    Reliance Super Automatic Investment Plan

    Reliance Savings Linked Insurance Plan

    Reliance Cash Flow Plan

    Reliance Super Market Return Plan

    Lastly, there is even an additional option for employers for better savings. That is:-

    Employee Voluntary Benefits

    Employee Protection Solutions

    Employers Liability Solutions

    [28]

    PRODUCT MIX

    Life insurance products are designed to suit the requirements of customers. Fundamentally the product provide for:

    Risk cover

    Investment

    Health cover

    In every product, to a certain degree, risk cover is imperative for it to fall under the category of insurance. Based on the coverage of the product, the premiums are calculated and the customer pays accordingly.

    In order

    to suggest

    the right

    product, it

    is essential

    requirements of the customer well.

    for

    an

    agent to understand the

    • Solutions for Individuals

    In today's world of ever increasing challenges and uncertain times, we understand your primary responsibility of safeguarding your family's financial security. Nothing is as

    important as ensuring your family’s protection against any financial hardships that may

    occur at any time.

    It is our aim to ensure that we help meet your financial goals without any hassles and at the same time, protect your loved ones in any unfortunate event, with absolutely no financial worries.

    Reliance Life Insurance Company Limited presents a wide range of plans that will help you

    make wise investments, protect your family, secure your child’s future and even chalk out a

    sound plan for your retirement.

    Plans:-

    • 1. Protection Plans

    • 2. Savings & Investment Plans

    • 3. Unit linked Plans

    • 4. Child Plan

    • 5. Retirement Plan

    • 6. Health Plan

    1. Protection Plans

    In today’s uncertain world, there could be calamity at every step of the life. It is up to you to

    ensure that your family stays protected always.

    [29]

    Reliance Protection Plans helps you do exactly the same. You have a wide range of options to choose a plan from. Right from limited period plans to lifetime protection plans, you can opt for the one that suits your lifestyle.

    While we understand that nothing can compensate for the loss of a life, we intend to provide you the peace of mind. Investing in Reliance Protection Plans would mean your

    family’s future is in safe hands.

    Reliance Life Insurance eTerm Plan

    Reliance Term Plan

    Reliance Simple Term Plan

    Reliance Special Term Plan

    Reliance Credit Guardian Plan

    Reliance Special Credit Guardian Plan

    • 2. Savings & Investment Plans

    Reliance Life Insurance Super Endowment Plan

    Reliance Life Insurance Guaranteed Money Back Plan

    Reliance Life Insurance Money Multiplier Plan

    Reliance Cash Flow Plan

    Reliance Endowment Plan

    Reliance Super Five Plus

    Reliance Whole Life Plan

    Reliance Connect 2 Life Plan

    • 3. Unit linked Plans

    Unit Linked Insurance Plans generally called as ULIP are investment cum protection plans that offers you dual benefits of availing market linked returns on your investments along with life insurance cover.

    You have an option to choose from a variety of funds available under the selected plan along with the flexibility to manage and switch between funds.

    Reliance Life Insurance presents you a wide range of Regular and Single premium ULIP plans that suits your investment need.

    Reliance Life Insurance Guaranteed Maturity Insurance Plan

    Reliance Life Insurance Classic Plan - II

    Reliance Life Insurance Classic Plan Limited Premium

    Reliance Life Insurance Pay Five Plan

    [30]

    Reliance Life Insurance Classic Plan

    • 4. Child Plans

    Being a parent is one of the joys of life. Your child looks up to you and depends on you for love, protection and support. You want to provide your child with the best in life.

    The Reliance Child Plan helps you save systematically so that you can secure your child’s future needs. Be it higher education, his or her first home or any other requirement, you will always be there for your child when he or she needs you.

    So, invest in a Reliance Child Plan right awayit is the best gift you could ever give your child.

    Reliance Child Plan

    • 5. Retirement Plans

    You are a young and earning individual. The income you earn allows you to enjoy life, your only worry being whether you will be able to continue the same lifestyle after retirement.

    A Reliance Retirement Plan will help you save money for your retirement. It ensures that you continue to get some income after retirement thereby ensuring that you do not have to depend on any other person or make any compromises to maintain the same lifestyle.

    Invest in a Reliance Retirement Plan today and enjoy life after retirement on your own terms.

    Reliance Life Insurance Smart Pension Plan

    Reliance Immediate Annuity Plan

    • 6. Health Plan

    "We Protect, We Care" We are sure you would like to do too convey that you care for your family through Reliance Life Insurance

    Reliance Life Care for You Advantage Plan

    Reliance Life Care for You Plan

    [31]

    Solutions for Groups

    As an employer, you believe in providing the best opportunities for your employees while keeping the interests of the company in mind. How will you strike a balance between the two?

    Reliance Life Insurance offers you a win-win solution with Solutions for Groups. Not only are your employees covered for life from accidents and disablements, you can also efficiently manage their future with gratuity and pension plans.

    So invest in Reliance Solutions for Groups to give your employees a sense of belonging and feel at peace knowing that you have fulfilled your obligation towards your corporate family.

    Plans:-

    • 1. Employees Liability Solutions

    • 2. Employee Protection Solutions

    • 1. Employees Liability Solutions

    As an employer, you have a lot to think about, especially how you can go about managing

    your employee’s future.

    The best way is to invest in Reliance Employers Liability Solutions. Plan the way ahead for your employee with the Group Superannuation and Group Gratuity scheme. This will help you to efficiently manage your employee’s well-being.

    So take care of your greatest assetsyour employeesby investing in Reliance Employers Liability Solutions!

    Reliance Life Insurance Traditional Group Superannuation Plan

    Reliance Life Insurance Group Leave Encashment Plus Plan

    Reliance Traditional Group Gratuity Plan

    Reliance Life Insurance Group Gratuity Plus Plan

    • 2. Employee Protection Solutions

    Your employees mean a lot to you. You want to protect them from any mishap whatsoever and show them that you care about their wellbeing.

    By investing in Reliance Employee Protection Solutions Group Term, you can give your employees total cover from accidents and disabilities for life.

    Provide your employees with security and a feeling of being part of a familyinvest in Employee Protection Solutions today!

    [32]

    Reliance Jan Samriddhi Plan

    Reliance Group Credit Shield Plan

    Reliance Group Term Assurance Plan

    Group Term Insurance Plan EDLI

    TRADITIONAL PLAN:-

    1) Reliance Term Plan

    2) Reliance Whole Life Plan

    3) Reliance Child Plan

    4) Reliance Endowment Plan

    5) Reliance Special Endowment Plan

    6) Reliance Cash Flow Plan

    7) Reliance Credit Guardian Plan

    8) Reliance Special Credit Guardian Plan

    Each of the above traditional plans is discussed as follows:

    1) Reliance Term plan: -

    This insurance policy is designed for those who only want life cover for the protection of their family, and do not wish to save for themselves. It can also be useful to business firms that wish to provide financial security to their business against the sudden loss of partners or valuable manpower. Since there is no saving element or bonus provision, the premium is very low. Hence, this is a high-risk plan with a low premium.

    Features: -

    • a) Purely a term plan

    • b) Entry age minimum 18 years and maximum 65 year

    • c) Maximum premium paying term is 30 year

    • d) Loan facility N.A.

    • e) Maturity amount = Sum assured

    [33]

    2) Reliance Whole Life Plan: -

    This insurance policy is designed for people who do not wish to avail of any benefits themselves but wish to create an immediate estate to protect their family by availing of insurance cover on their life at a very low cost.

    Features: -

    • a) It is a whole life insurance policy with profits

    • b) Low cost life cover

    • c) Maturity age is 85 year or 99 years last birthday as chosen

    • d) Maturity amount = Sum assured+ Vested bonus

    • e) Tax benefit is available

    3) Reliance Child Plan: -

    This insurance policy is designed for people who wish to save money for a future time when there will be a recurring need for substantial amounts of money. This is especially true when it comes to paying large sums of money for higher education as and when your son or daughter is studying to become an Engineer, a Doctor or specialize in some other field, or is perhaps planning to go abroad. This money is payable in equal instalments over the last 4 years of the policy term.

    Features: -

    I. Minimum entry age is 20 year and maximum 60 year

    • a) Minimum sum assured is Rs. 25,000.

    • b) Minimum premium paying term is 5 year and maximum 20 year

    • c) Tax benefit is available

    • d) Maturity amount = Four equal instalment of sum insured in last four year plus vested

    bonus in the last year

    • e) Loan facility is available

    4) Reliance Endowment Plan: -

    Reliance Life Insurance’s Reliance Endowment Plan is the key to all your financial needs. It is an inexpensive and easy way to protect you, your family or your business.

    [34]

    In a nutshell this plan will keep you financially prepared for all the special occasions in your life - your daughter’s wedding, your child’s university education or even a new office for your business - by eliminating the burden that a shortage of money creates.

    In the event of your untimely death, Reliance Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides.

    Reliance Endowment Plan also gives you the additional benefit of participating in the

    company’s profits, which you will receive at the end of the policy period.

    Features: -

    • a) Entry age minimum is 5 year and maximum 65 year

    • b) Maturity age minimum is 18 year and maximum 75 year

    • c) Minimum premium paying term is 5 year and maximum 35 year in case of regular and

    in case of single 15 year

    • d) Minimum sum assured is Rs. 25,000 or as determined by the minimum premium

    • e) Maximum sum assured is Rs. 5,00,000 (entry age below 18 years and no limit for entry

    age 18 and above)

    • f) Premium mode annual, half yearly, quarterly and monthly (by salary deduction only)

    • g) Loan up to 90% of the surrender value of the policy

    • h) Maturity amount = Guaranteed sum assured + Reversionary bonus

    5) Reliance Special Endowment Plan: -

    This insurance policy is designed for people who wish to combine savings with extended security. The unique feature of this policy is that life protection continues for five years after you have stopped the payment of premium. Payment of sum assured at the end of premium paying term and extension of life cover thereafter for the full sum assured for a period of 5years, are characteristics of the policy.This plan also participates in the profits.

    Features: -

    • a) Entry age minimum 12 year and maximum 65 year

    • b) Minimum sum assured is Rs. 25,000

    • c) Minimum premium paying term is 10 year and maximum 40year

    • d) Unique feature of this policy is that five year life protection continues after you have

    stopped the payment of premium

    [35]

    • e) Tax benefit is available

    • f) Under this policy bonus is compounded yearly

    • g) Loan facility is available

    • h) Maturity amount = Full sum assured before maturity date +Vested bonus at the time

    of maturity date

    6) Reliance Cash Flow Plan: -

    This insurance policy is designed for those who have a recurring need for reinvestment in business or look for short-term investment channels. The advantage of the policy is that they need not part with a sizable amount of money at any one time, but create, through regular premium payments, a periodic return of lump sums which become available for reinvestment at higher returns, while providing simultaneously, substantial life cover.

    Alternatively, it can be used to meet any immediate financial crisis in the family like your son's college admission, your daughter's engagement, and renovation of your home or perhaps, a holiday abroad.

    The money is payable in instalments. The first instalment is paid at the end of the 4th year and thereafter at the end of every 3rd year.

    Features:-

    • a) Plan with profits

    • b) Minimum entry age is 15 year and maximum is 63 year

    • c) Maximum premium paying term is 34 year

    • d) Loan facility is not available

    • e) In case of death full sum assured + accrued bonuses up to the date of death is payable

    immediately

    • f) In case of survival up to maturity date all premiums paid

    • g) Rider accident death and critical illness

    • h) Mode of payment is available

    [36]

    7) Reliance Credit Guardian Plan: -

    This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death.

    Features: -

    • a) Loan protection against home, home improvement, two wheelers and four wheelers

    • b) In case of death remaining loan amount paid immediately

    • c) In case of survival no benefit is available

    • d) Premium payment option for single and regular is available

    • e) Premium paying term is 2/3 of loan period and remaining period paid by the company

    8) Reliance Special Credit Guardian Plan: -

    This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death, disability or critical illnesses.

    Features: -

    • a) Loan protection against home, home improvement, two wheelers and four wheelers

    • b) In case of death remaining loan amount paid immediately

    • c) In case of survival no benefit is available

    • d) Premium payment option for regular and single is available

    • e) Premium payment term is 2/3 of loan period and remaining period paid

    by the

    company

    • f) Maturity amount = All the premium paid amount

    • g) Tax benefit is available

    [37]

    UNIT LINKED PLAN

    A unit-linked

    policy is

    a

    life

    assurance policy in

    which

    the

    performance of a portfolio of shares.

    benefits

    depend

    on

    the

    Each premium paid by the insured person is split: a part is used to provide life assurance cover, while the balance (after the deduction of costs,expenses, etc.) is used to buy units in a unit trust.

    In this way, a small investor can benefit from investment in a managed fund without making a large financial commitment. As they are linked to the value of shares, unit linked policies can go up or down in value. Policyholders can surrender the policy at any time and the surrender value is the selling price of the units purchased by the date of cancellation less expense). A small part of the contribution is used for providing life cover and the balance is invested in unit. Legal heirs are entitled to the amount of insurance cover and entitled units in case of death of the insured.

    Reliance Life Insurance Company Limited has also offered the two

    Unit Linked Plans, which are listed as follows:

    1) Reliance Market Return Plan

    2) Reliance Golden Years Plan

    Amongst the above plans the Reliance Market Return Plan is the largest selling plan of the Reliance Life Insurance Company Limited.

    [38]

    The above two ULIP plans are discussed as follows:

    1) Reliance Market Return Plan: -

    Reliance Market Return Fund is the unit-linked product that helps you invest in the financial markets in a combination of investment instruments of your choice. You can enjoy the returns from the markets without the trouble of monitoring and managing your own investment portfolio and keeping track of the market movements. At the same time your investment premiums provide you with insurance cover. Reliance Market Return Fund unit- linked insurance plan provides you with a basket of fund options that balances your return and risk exposure while providing life cover at the same time.

    Features: -

    • a) Minimum entry age is 30 days and maximum entry age is 65 year

    • b) Maximum policy term 40 year and minimum policy term 5 year

    • c) Mode of premium as annual, quarterly, half yearly and monthly Rs. 1000 (for salary

    deduction only) and Rs.2500 (standing order/credit card)

    • d) Top up premium minimum Rs. 2500

    • e) Option of investment fund

    i. Capital secure 100% fixed interest securities

    ii. Balanced minimum 80% fixed interest securities and maximum 20% in equity

    iii. Equity 100% equity

    iv. Growth minimum 60% fixed interest securities and maximum 40% in equity

    • f) Loan facility is not available

    • g) One switches every year free and subsequent switches charged 1% of the amount

    switched

    • h) Partial withdrawals per year under regular and single premium options is 2 times

    • i) Lock in period till today is 3 year

    • j) Minimum unit account balance after each withdrawals is Rs. 10,000

    [39]

    2) Reliance Golden Years Plan: -

    Reliance Golden Years Plan, The Reliance Life Insurance ‘no-worry stay happy’ retirement plan. Reliance Golden Years Plan is a flexible package that provides freedom of choice in choosing the type of investment, life cover, vesting options such as commuting and annuity options. Contributions provide Income tax savings as well.

    Reliance Golden Years Plan, a flexible pension product is available for all individuals who are between the ages of 18 and 65.

    Features: -

    • a) Entry age minimum is 18 year and maximum 65 year

    • b) Minimum premium amount Rs. 10,000 and maximum is unlimited

    • c) Mode of premium payment is available

    • d) Pension plan with risk cover and without risk cover

    • e) Choice of investment

      • i. Capital secure fund 80% in equity and 20% in government security

    ii. Balanced fund 80% in government and 20% in equity

    • f) No loan facility is available

    • g) Tax benefit is available

    • h) Annuity options

      • i. Annuity payable for life

    ii. Annuity payable for 5/10/15 years certain and thereafter with life

    iii. Annuity payable for life with return of capital on death of the annuitant

    [40]

    COMPARATIVE ANALYSIS

    The study of project is all about comparative analysis of different insurance products of different companies.

    Comparing Reliance Life Insurance, Max New York Life Insurance, MetLife Insurance

    Comparing LIC, Reliance Life Insurance, ICICI Prudential Life Insurance

    Comparing Market Share of Indian Insurance Companies

    Comparing Capital funds of Indian insurance companies

    Compare between Reliance child insurance and LIC komal jeewan policy

    Why Compare Best Life Insurance Policies in India

    Life insurance policy provides you assurance that your family will get financial security and support even when you are not around. This is the best way where the insured person can

    save his family from financial crisis at the time of any mishappening or after death, but prior

    to this it’s necessary to compare best life insurance policies offered by different companies,

    necessary compare contract terms, cost, premium quotes, limitations and benefits.

    With a population of over one Billion, only 35 million people in India are covered with life insurance. There are so many reasons behind this low penetration of life insurance. Undoubtedly, ignorance about insurance, lack of knowledge about facilities and cost efficiency of insurance - are some of the reasons.

    Why Compare Best Life Insurance Plans in India

    If you too are looking for a good life insurance policy but do not have any idea about which insurance company to choose and what type of policy is apt for you, www.policybazaar.com can be a great help.

    At our site, we are offering details of the leading life insurance companies in India. You can get comprehensive details of different life insurance policies offered by these companies. You can even compare different life insurance policies to see which policy suits you the most. You can also enrol for a policy and pay the premium for the policy. So get insured, all it takes is a few clicks of the mouse at our website.

    Not many today know that life Insurance premium over the past few years has been revised by quite a few insurers. This has not only reflected in the amount of increased allocation per life insurance premium but also the returns that guaranteed returns that a policyholder gets on his life insurance premiums.

    [41]

    To learn more about life insurance premium for the bestselling products all a customer today needs and get life insurance quotes from all the top rated insurers.

    COMPARATIVE ANYLISIS OF TOP 10 LIFE INSURANCE COMPANIES IN INDIA

    • 1. Life Insurance Corporation of India

    LIC (Life Insurance Corporation of India) still remains the largest life insurance company accounting for 64% market share. Its share, however, has dropped from 74% a year before, mainly owing to entry of private players with innovative products and better sales force.

    2. ICICI Prudential Life Insurance Company Ltd.

    ICICI Prudential Life Insurance Co Ltd is the biggest private life insurance company in India. It experienced growth of 58% in new business premium, accounting for increase in market share to8.93% in 2007-08 from 6.97% in 2006-07.

    • 3. Bajaj Allianz Life Insurance Company Ltd.

    Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52% and its market share went up to 6.98% in 2007-08 form 5.66% in 2006-07. The company ranked second (after LIC) in

    number of

    policies

    sold

    in

    2007-08,

    with

    total

    • 4. SBI Life Insurance Company Ltd

    market

    share

    of

    7.36%.

    SBI Life Insurance Co Ltd in terms of new number of policies sold, the company ranked 6th in2007-08. New premium collection for the company was Rs 4,792.66 crore in 2007-08, an increase of 87% over last year

    • 5. Reliance Life Insurance Company Ltd.

    Reliance Life Insurance Co Ltd Total collected was Rs 2,792.76 crore and its market share went up to 2.96% from 1.23% a year back. It now ranks 5th in new business premium and 4th in number of new policies sold in 2007-08.

    • 6. HDFC Standard Life Insurance Company Ltd.

    HDFC Standard Life Insurance Co Ltd with an income of Rs 2,680 crore in FY2007- 08,registering a year-on-year growth of 64%. Its market share is 2.88% and it ranks 6th among the insurance companies and 5th amongst the private players.

    • 7. Birla Sun Life Insurance Company Ltd.

    Birla Sun Life Insurance Co Ltd market share of the company increased from 1.22% to 2.11% in 2007-08.

    • 8. Max New York Life Insurance Company Ltd.

    [42]

    Max New York Life Insurance Co Ltd has reported growth of 73% in 2007-08. Total new business generated was Rs 641.83 crore as against Rs 387.51 crore.

    9. Kotak Mahindra Old Mutual Life Insurance Ltd.

    Kotak Mahindra Old Mutual Life Insurance Ltd the fiscal 2007-08, the company reported growth of 80%, moving from the 11th position to 9th. It captured a market share of 1.19%

    in2007-08.

    10. Aviva Life Insurance Company India Ltd.

    Aviva Life Insurance Company India Ltd ranking dropped to 10th in 2007-08 from 9thlast year. It has presence in more than 3,000 locations across India via 221 branches and close to40 banc assurance partnerships. Aviva Life Insurance plans to increase its capital base by Rs 344 crore.

    Subsequent Growth rate in insurance industry

    The life insurance companies have performed the best when it comes to growth with an increase of almost 70% in new premium that has been collected in the initial 5 months of

    2012.

    As per IRDA data, in April-August 2010 the insurance companies earned $11.73 billion in new premium - in the corresponding period in the previous year the amount stood at 6.9 billion dollars.

    LIC, a state held insurer, had been the biggest profit maker at that time with an addition of 88% to their existing business. The privately owned insurers together had seen a leap of 34% to their policy sales.

    ICICI Prudential earned 576.60 million dollars at that time. During April-August 2009 SBI Life had earned $379.20 million in sales of new policies and that figure went up to $531.87 million in the corresponding period in 2010 making it an increase of 40%. HDFC Standard Life also experienced a good growth of 54% in new sales.

    IRDA data shows that between April and October 2010 the general insurance industry experienced a year-on-year growth of 22.76% with regards to underwritten gross premium.

    The total value of that premium was 5.29 billion dollars while the same figure stood at $4.31 billion in April-October 2009. For the public sector companies the year-on-year growth rate was 21.09 percent between April-October 2010 and April-October 2009.

    In the same period the privately held insurers saw an increase of 25.19 percent in terms of premium collected. Among the publicly owned entities, New India Insurance was one of the better performers with a premium income of 916.77 million dollars in April-October 2010.

    [43]

    At the same period in 2009 they had earned 770.25 million dollars which implies a growth rate of 19.04%. The IRDA Summary Report of Motor Data of Public and Private Sector Insurers 2009-10 states that in the same period almost 28.4 million policies were sold and the aggregate worth of premium collected was $2.31 billion.

    The health insurance sector, according to the RNCOS' research report named "Booming Health Insurance in India" posted unprecedented growth rates in 2008-09 and 2009-10. The report also estimates that between the 2009-10 and 2013-14 the sector would see a compound annual growth rate (CAGR) of at least 25%.

    Insurance industry contribution to GDP

    Experts are of the opinion that around the world the insurance industry contributes around 4.5% to national GDPs. They have questioned the logicality of opinions that in India the contribution can be higher saying that there are other important sectors like education, defence, and health that cannot be undermined in this context.

    They have ruled out possibilities that the sector can contribute 10% to India's GDP. The Chairman of IRDA, Hari Narayan has ruled out any such possibility asking if India's GDP growth will be that much in the next few years ahead.

    The IRDA states that in India land and gold are more preferred as forms of investment. Narayan feels that if the insurance sector is to do well in terms of contribution to GDP then more people should be convinced about its capability to provide good ROI (return on investment).

    [44]

    In terms of policies sold following are the top insurers in India:

    Company

    Policies

    sold

    till

    December

    2011

    (approximate figure)

     

    LIC

    20404281

    Future General Life

    100143

    ICICI Prudential

    785938

    Met Life

    98904

    Reliance Life

    698109

    Star Union Dai-ichi

    82037

    Bajaj Allianz

    640483

    Shriram Life

    73490

    Birla Sunlife

    589855

    Bharti AXA Life

    69151

    SBI Life

    491927

    Aegon Religare

    47332

    Max New York

    405662

    IDBI Federal

    45833

    HDFC Standard

    397408

    Canara HSBC OBC Life

    44899

    Tata AIG

    199275

    DLF Pramerica

    43299

    Kotak Life Insurance

    199614

    IndiaFirst

    38498

    Aviva

    100216

    Sahara Life

    36228

    Edelweiss Tokio

    1968

    Key findings

    Following are some important findings from World Bank regarding the condition of insurance industry in India:

    Between 2005 and 2010 the yearly GDP growth was approximately 8.56% At the same time, the ratio of gross savings to GDP was 33% Middle class saw the quickest growth The life expectancy rate of people went up and urban development happened at almost 54%. In 2010 rate of premium growth came down to 4.2% and compared to global standards the premium share was pretty low Major operational issues for insurers were expenditure control, claims settlement procedures, improving investment yields, and capital requirements In the 2010-11 fiscal the life insurance industry grew by 4.20% while the general insurance industry increased by 8.10%.

    [45]

     During that time the paid-up capital (private total) for the life insurance sector was INR
    During that time the paid-up capital (private total) for the life insurance sector was
    INR 236.57 billion while the paid-up capital (industry total) was INR 236.63 billion.
    In 2010-11 the paid-up capital (private total) for the general insurance sector was
    INR 39.56 billion while the paid-up capital (industry total) was INR 67.06 billion.
    In 2010-11 the operating costs of privately owned life insurers was INR 159.62 billion
    while the total life insurance industry expense was INR 329.42 billion.
    In the same time the privately owned general insurers spent INR 39.32 billion from
    an industry total of INR 106.20 billion.
    In 2010-11 the privately held life insurers paid benefits and claims worth INR 312.51
    billion while the industry aggregate was INR 1425.24 billion.
     At the same time the private general insurers paid benefits and claims worth INR
    99.37 billion while the industry total was INR 295.36 billion.
    [46]

    Comparing Reliance Life Insurance, Max New York Life Insurance, MetLife Insurance

    Attributes

    Reliance Life Insurance

    Max

    New

    York

    Life

    MetLife Insurance

    Insurance

     

    Corporate

    Annuity Solutions,

    Group Gratuity Plans,

    Group Gratuity Plans,

    Life Insurance

    Group Gratuity Plans, Group Protection Plans, Group Term Insurance Plans

    Group Term Insurance Plans, Unit Linked Group Superannuation Plan, Employee Deposit Linked

    Group Scheme Plans, Group Term Insurance Plans

    Agent

    No

    No

    No

    Affiliation

    Reliance

    Max New York

     

    Met

    Life

    India

     

    Insurance

    Life

    Insurance

    Corporation (LIC)

    Types

    Life

    Insurance

    Life

    Insurance

     

    Corporation (LIC)

    Corporation (LIC)

     

    SMS

    Short

    -

    54242

    56161

     

    Code

     

    Individual Life

    Children

    Plans,

    Children

     

    Plans,

    Children Plans,

    Insurance

    Endowment Assurance Plans, Money Back

    Endowment Assurance Plans, Money Back

    Endowment Assurance Plans,

    Plans, Protection Plans, Retirement Pension Plans, Savings And Investment Plans, Term Assurance Plans, Whole Life Plans, Health Plans

    Plans, Protection Plans, Retirement Pension Plans, Savings And Investment Plans, Term Assurance Plans, Unit Linked Insurance Plans

    Health Plans, Money Back Plans, Protection Plans, Retirement Pension Plans, Savings And Investment Plans

    (ULIPS),Whole Plans, Health Plans

    Life

    [47]

    Comparing LIC,Reliance Life Insurance,ICICI Prudential Life Insurance

    Attributes

    LIC

    Reliance Life Insurance

    ICICI Prudential Life Insurance

    Corporate Life

    Group Critical Illness

    Annuity Solutions,

    Annuity Solutions,

    Insurance

    Rider, Group Gratuity Plans, Group Leave Encashment Plan, Group Mortgage Redemption Assurance, Group Scheme Plans, Group Term Insurance Plans, Social Security Plan

    Group Gratuity Plans, Group Protection Plans, Group Term Insurance Plans

    Group Gratuity Plans, Group Protection Plans, Group Scheme Plans, Group Term Insurance Plans

    Agent

    No

    No

    No

    Affiliation

    Life Insurance

    Reliance

    ICICI Bank

    Corporation (LIC)

    Types

    Life Insurance

    Life Insurance

    Life Insurance

    Corporation (LIC)

    Corporation (LIC)

    Corporation (LIC)

    SMS Short Code

    -

    -

    56767

    Individual Life

    Children Plans,

    Children Plans,

    Children Plans,

    Insurance

    Endowment Assurance Plans, Joint Life Plans, Money Back Plans, Plans For Handicapped Dependents, Plans For High Worth Individuals, Protection Plans, Retirement Pension Plans, Special Plans For Women, Term Assurance Plans, Unit Linked Insurance Plans (ULIPS),Whole Life Plans

    Endowment Assurance Plans, Health Plans, Money Back Plans, Protection Plans, Retirement Pension Plans, Savings And Investment Plans, Term Assurance Plans, Whole Life Plans

    Endowment Assurance Plans, Health Insurance, Money Back Plans, Protection Plans, Retirement Pension Plans, Savings And Investment Plans, Term Assurance Plans

    [48]

    RESEARCH OBJECTIVES:

    The main purpose of the project is to know about the company, about its products and types of plan. And also know about which insurance has maximum market share and capital fund in India and comparison with its competitors.

    1. Competitors analysis – Comparison of children’s plan (Reliance child Plans) based on the nearest Competitor plans (LIC komal jeevan policy). On the basis of following features:

    Plan type

    Min/Max Term Child

    Min/Max Age of Child

    Payment Mode

    Life assured

    Beneficiary

    Benefit Structure

    Death Benefit

    Bonus and Additions

    Riders Available

    2. To know the different promotion strategy used by companies to aware their customers.

    3. To develop and standardize a measure to evaluate investment pattern in life insurance services.

    4. To analyse the market share of competitors towards the company.

    RESEARCH METHODOLOGY

    Research Strategy

    For my research study first of all this is very important that I have to know what is child Insurance policy and how it works. I’ll visit Reliance Life Insurance Company in Ranchi to know more about child Insurance policy.

    [49]

    Data Collection

    There are two sources of study:-

    • 1. Primary data

    • 2. Secondary data

    • 1. Primary Data:

    Fixing appointments with their agents.

    I contact the Agent of Reliance Life Insurance Company Ltd. to obtain some of the information about market share.

    • 2. Secondary Data:

    Secondary data is one which already exists and is collected from the published sources. The sources from which secondary data was collected are:

    Newspapers and Magazines like Economic Times, Insurance Times, and Insurance Post.

    Internet

    Secondary data would give me real figures as to the current position and trends of the company. It would help me to come to a better conclusion for my research objective and understand the performance of different companies in the market.

    RESEARCH DESIGN:-

    Research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with the economy in procedure. It is the blueprints for collection, measurement and analysis of data.

    Type of Research: Analytical Research

    Under the analytical research, the researcher has to use facts or information already available and analyze the facts and information to make a critical evaluation of the material.

    During this research descriptive and exploratory approach is taken into consideration because of the availability of relevant information to describe the relationships between the marketing problem and the available information.

    [50]

    Research Constraints

    Due to busy academic schedule, class activities and transportation problems, the data for the research is basically compiled from secondary sources.

    There are some limitations of this project but Researcher will try to overcome as far as possible.

    Benefits of this Project

    • 1. Get to know about the products and features Reliance Life Insurance.

    • 2. How the whole insurance industry work, we get the knowledge.

    • 3. After comparative analysis, we got to know about the positions of various companies.

    • 4. After the whole study, we even understand the similar various insurance company capital

    funds and market share in this project.

    • 5. Even got the critical know how of working of any insurance.

    • 6. The research would also help in identifying the needs of the people and the present day

    wants.

    • 7. The project would also help me to understand the Insurance sector, the nature of work

    performed and operations.

    • 8. After

    the

    data

    is

    collected

    and

    analysed,

    researcher

    will

    be

    able

    to

    present

    it

    systematically. This project will help in making the data more understandable and simpler.

    • 9. This project report will indicate the current market trends.

    10. This project will be beneficial in comparing Reliance life insurance performance with the average performance of the insurance industry.

    [51]

    Compare between Reliance Child Plan and LIC Komal Jeevan Policy

    SR

    Reliance Child Plan

    LIC Komal Jeevan Policy

    NO.

    1.

    Reliance Child Plan:-

    LIC Komal Jeevan Policy:-

    Reliance Child Plan is a Traditional

    LIC’s Komal Jeevan Plan is a children’s

    Money Back Child Plan where 25% of the Sum Assured is returned every year in the last 4 years. In this plan, the life of the parent is insured for the benefit of the child. The premium needs to be paid for the entire tenure

    money back policy in which the premium is returned on the policy anniversary after the child attains 18 years, 20 years, 22 years and 24 years. If the child dies within the policy tenure after risk commencement, then the Sum Assured along with Guaranteed Additions are

    and 25% of the Sum Assured is paid in the last 4 years of the policy along with Bonus on maturity. However, if the parent dies or becomes totally and permanently disabled within the policy tenure, the entire Sum Assured is paid as immediate benefit. The future premiums in this child plan are waived to ensure that the Maturity Benefit is paid either ways.

    paid and the policy is terminated.

    2.

    Key Features of Reliance Child

    Key Features of LIC Komal Jeevan Plan:-

    Plan:-

    This plan can be taken by the child’s

    This is a Traditional Money Back Plan where 25% of the

    parents or grandparents for a child between 0 to 10 years.

    Sum Assured is paid every year in the last 4 years.

    Premium needs to be paid till the child

    Maturity Benefit is paid

    is 17 years old.

    under all circumstances, even in case of unfortunate loss of parent.

    Risk starts to commence after 2 policy years or the child is at least 7 years old, whichever is later.

    This policy provides high sum assured rebate

    No medical examination is required under this plan.

    Accumulated Bonus is

    Loyalty or Terminal Bonus is payable

    payable on maturity There are 3 riders available

    on death or maturity.

    in this plan- Critical Illness

    An Additional Premium Waiver Benefit

    Rider, Accidental Death & Total & Permanent Disablement Rider and

    rider can be taken along with this plan. There is a Guaranteed Addition of Rs. 75 per thousand Sum Assured for each

    [52]

       

    Family Income Benefit Rider

     

    completed year.

    3.

    Benefits you get from Reliance Child

    Benefits you get from LIC Komal Jeevan

    Plan:-

    Plan:-

    Death Benefit In case of

    Death Benefit Sum Assured + Bonuses

    death of the Life Insured, i.e. the parent, the entire Sum Assured is paid for immediate expenses; the future

    after commencement of risk. Otherwise, the sum of basic premiums are paid back Maturity Benefit Guaranteed

    premiums are waived and paid by the insurer such that the Survival Benefits are either ways paid.

    Additions along with Loyalty additions is payable in a lumpsum. Survival Benefit

    Survival Benefit Is provided as below:

    When child is 18 years of age - 20% of the Sum Assured

     

    When child is 20 years of age - 20% of

    When child is 3 years of age

    the Sum Assured

    before maturity -25% of Sum Assured

    When child is 22 years of age - 30% of the Sum Assured

    When child is2 years of age before maturity-25% of Sum Assured

    When child is 24 years of age - 30% of the Sum Assured

     

    Income Tax Benefit Premiums paid

    Maturity Benefit On

    under life insurance policy are

    maturity the remaining 25% of Sum Assured + Bonus Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C

    exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)

    4.

    Eligibility conditions and other restrictions in Reliance Child Plan:-

    Eligibility in LIC Komal Jeevan Plan:-

    Sum Assured (in Rs.)- 1,00,000 to

    Sum Assured (in Rs.)- 25,000

    to70

    25,00,000

    to no limit Policy Term (in years)- 5 to 20

    Policy Term (in years)- 18 years – Child’s Age at Entry

    Premium Payment Term (in

    Premium Payment Term (in years)- 8 to

    years)- equal to PT

    18

    Entry Age of Policyholder (in

    Entry Age of Policyholder (in years)-0

    years)-20 to 60 Age at Maturity (in years)-25

    to 10 Age at Maturity (in years)- 26

    Payment modes-Single, Yearly, Half-

    Payment modes-Yearly, Half- yearly, Quarterly and

    yearly, Quarterly, Monthly or SSS

    [53]

       

    Monthly

     

    5

    Sample illustration of premium of Reliance Child Plan:-

    Sample illustration of premium amount in LIC’s Komal Jeevan Plan:-

    Age of Policyholder = 30, 35

    The illustration is for a healthy child

    and 40 years Policy Tenure = 18 years

    opting for a Sum Assured = Rs. 1,00,000 Policy Term= 18 years Age at entry of

    Sum Assured= Rs.5,00,000

    the child.

    Guaranteed Benefits:

     

    3 years before maturity = 25% of Sum Assured is paid = Rs 1,25,000

    2 years before maturity = 25% of Sum Assured is paid = Rs 1,25,000

    1 year before maturity = 25% of Sum Assured is paid = Rs

    1,25,000

    On Maturity = 25% of Sum Assured is paid = Rs 1,25,000 + Bonus

    6.

    Additional Features and Benefits of

    Additional Features and Benefits of LIC’s

    Reliance Child Plan:-

    Komal Jeevan Plan:-

    There are 3 additional riders

    There are riders available with this plan

    available in this policy

    • a. Premium Waiver Benefit

    • a. Critical Illness Rider

    • b. RiderTerm Rider

    • b. Accidental Death & Total &

    Permanent Disablement Rider and

    • c. Family Income Benefit Rider

    7.

    What happens if?

    What happens if?

    You stop paying the premium

    You want to surrender the policy

    within the first 3 yearsThe policy will lapse if the premium has not been paid within the grace period and the policy benefits stop. You stop paying the premium

    Surrender of policy is allowed only after completion of 3 years or more. The Guaranteed Surrender Value before the date of commencement of risk is 90% of the premiums paid excluding the premiums paid during the first year

    after the first 3 yearsIf the premium has not been paid within the grace period, the policy will made 'Paid up' and the Sum Assured will be

    and any extra premium paid. After the date of commencement of risk, the Guaranteed Surrender Value is 90% of the premiums paid before the date of commencement of risk excluding

    [54]

     

    reduced proportionately. You want to surrender the

     

    the premiums paid during the first year and any extra premium paid plus 30%

    policy If premiums for 3 years have been paid up, then surrender of policy is allowed.

    of the premiums paid after the date of commencement of risk. You want a loan against your policy

    Guaranteed Surrender Value

    Policy Loan is not available in this plan.

    = 30% of basic premiums paid – 1st year’s premium and additional premium paid (if any). You want a loan against your policy - There is loan available under this plan but only after 3 policy years and upto a maximum of 90% of the Surrender Value of the policy at the time of availing the loan.

     

    8.

    Other child insurance plans from Reliance Life Insurance :-

    Other child insurance plans from Life Insurance Corporation of India:-

    No more

    LIC Jeevan Anurag

    LIC CDA Endowment Vesting At 2

    LIC CDA Endowment Vesting At 18

    LIC Jeevan Kishore

    LIC Child Career Plan

    LIC Child Future Plan

    LIC Jeevan Chhaya

    LIC Marriage Endowment Or Educational Annuity Plan

    [55]

    India insurance industry - market share of leading companies

    The following table shows the market share of top insurers in India in the period till April

    2011:

    Company

    Approximate market share

    LIC

    50%

    ICICI

    10%

    SBI

    5%

    Bajaj

    4%

    Reliance

    5%

    HDFC

    6%

    Birla

    4%

    Max New York

    3%

    Tata

    2%

    Met Life

    1%

    Kotak

    2%

    Others

    8%

    In line with expectations, life insurance industry’s new business volumes in the individual

    new business segment remained strong, growing 36% Y-o-Y and 23% M-o-M, in August

    2010.

    In the individual new business segment, while LIC, ICICI, and HDFC improved WNRP industry market share (YTD) by 3.8 percentage points, 1.5 percentage points, and 0.7 percentage points, respectively, Bajaj Allianz (1.8 percentage points), Birla (1.25 percentage points), SBI (1.26 percentage points) and Reliance (0.31 percentage points) lost significantly. At 5mFY11

    end, private insurers’ market share stood at ~50%.

    Here is how Various Life Insurers stack up against each in the Industry as a whole. The following Data suggests that LIC of India is still the market leader followed by ICICI Prudential, HDFC Standard Life, SBI, Reliance, Bajaj, Birla Sun Life, Max New York etc.

    India insurance industry - market share of leading companies The following table shows the market share

    [56]

    Market share in 2010.

    Market share in 2010. Market share in FY 2012. Source: www.freepress.in Key Trends of 2012 –

    Market share in FY 2012.

    Source: www.freepress.in

    Key Trends of 2012

    (1) Private bank led insurers have fared much better than insurers dependent on agency distribution in volumes

    (2) Share of single premium policies, which had inched up after the new ULIP guidelines, has reversed now as new ULIP schemes have stabilized.

    (3) Overall ticket sizes have remained flat for private insurers in FY12 but bank led insurers have done better with growth in average ticket sizes aiding overall volumes.

    [57]

    Capital Fund: -

    Capital funds of private companies (Rs in Crore)

    ICICI Prudential

    375

    Max New York

    250

    HDFC Standard

    218

    Bajaj Allianz

    200

    Tata AIG

    183

    Birla Sun Life

    180

    AVIVA

    155

    OM Kotak

    153

    Reliance Life

    126

    SBI Life

    125

    Met Life

    110

    ING Vysya

    110

    [58]

    DISTRIBUTION CHANNEL

    Reliance Life Insurance Company Limited is using five types of distribution channel, which are as follows:

    1) Agency: -

    Independent insurance agents represent a number of companies and can research these companies’ products to find the right combination for their clients. Independent agents & insurance producer groups are growing in prevalence. Although producer groups are in their infancy, their emergence may potentially be realignment in the distribution of financial services. Independent shops realized that by pooling production and funding a central support office, they had increased buying power.

    The one type of distribution channel, which Reliance Life Insurance Co. Ltd is using, is an agency. This channel works as follows:

    Branch

    Managers

    Advisors

    Customers

    2) Bank Assurance: -

    While a lot of bank relationships with insurance companies have been established, life insurance sales have been slower than one would expect he primary bank insurance activities have been the distribution of annuities, credit life, and direct marketing insurance.

    Banks are failing to incorporate successful sales tactics used to sell other financial services like investments.

    Another type of distribution channel is bank assurance. This channel is tie up with banks. In this channel the advisors using or targeting the bank customers to make a business with them i.e., to sell the policy of the company.

    3) Corporate:-

    To gain a better understanding of the demand amongst independent advisors for trust services and to gain a better feel for how independent advisors handle trust services, a research was performed with independent advisors across several broker/dealers and custodians.

    The interviews revealed that demand is greatest for living trusts among independent advisors, followed by demand for corporate trustee services.

    [59]

    Another type of distribution channel is corporate, which are for employee benefits. This channel is tie up with corporate or small enterprises. Through these small enterprises, the advisors will sell the products/policy to customers of the small enterprises.

    4) Rural Benefits:-

    Brokerage firms have gained much of the institutional and personal trust business lost by the banks. These firms have steadily captured assets, primarily at the expense of the banks. The number of non-bank trust companies has increased in recent years as independent trust companies have emerged and more broker/dealers are integrated services. Insurance companies view full-service brokers as a potentially new distribution channel as well.

    Another type of distribution channel is rural benefits. This channel works as a dealership. In this channel, the dealers will sell the policy to the target customers.

    5) Web World:-

    Direct sales of life insurance are growing rapidly, but many of the traditional full-serve players seem to be letting it go. Across all financial services, consumers are expressing a willingness to deal with a variety of providers on the web. Web sites are starting to pop up offering consumer insurance products especially designed for distribution over theweb.

    Another type of distribution channel is web world. This channel is tie up with customer database. In this channel, the advisors will sell the policy to the target customers, which are taken from the customer database, are listed in the website.

    PROMOTIONAL PROGRAMMES & TARGET SEGMENT

    Promotional programmes and target segment are related to each other. The promotional programmes are made to motivate the advisors/agents and sales managers to do more business i.e., to sell the more policies. The Reliance Life Insurance Co. Ltd has made three promotional schemes, which are as follows:

    1)

    Shubh Arambh

    2)

    Reliance Advisor’s Reward Experience: This programs consists of

    New Advisor Incentive Program

    Board of Advisors -

    Annual Discovery Series

    Advisor Career Progression

    RARE Club Loyalty Program

    [60]

    CONCLUSION

    Reliance Life Insurance has always been an innovator in the field of Insurance. The company has a keen interest in the development and enhancement of its products in India. The company focuses in providing quality products to all the areas of our country.

    After the deep study of insurance sector of India, I can tell that this is the sector, which has most business opportunities perhaps in India Insurance industry is one of the fastest sectors in India.

    Insurance sector has been growing by 25% to 30% and it is expected to increase by 50% in coming 5 years. After the opening up of the insurance sector, it has become much competitive and insurance awareness among people has increased.

    As far as the comparison of Reliance Life Insurance and other players is concerned, there are both positive as well as negative impacts on both the sides.

    For Reliance Life Insurance, the negative aspect is that its market share is low.

    For private players the negative aspect is that they have to fight with the public sector giant which is established player with a high brand value.

    But the positive impact is that the life insurance awareness has increased and the business of Reliance Life Insurance has increased.

    Reliance Life Insurance products have tremendous amount of potential and demand in the market. The name speaks for it and the customer associate themselves with the brand name. Reliance Life Insurance has tight competition with ICICI Prudential.

    Reliance Life Insurance product quality is good but the technical aspects of its functioning is average. Advertisement of its products is the main area of improvement, which is deviating from the desired level. The various promotional activities been conducted by Reliance Life Insurance in regional languages is an effective tool. The growing demand in the market for Reliance Life Insurance products indicates the prospect of new customers for the company.

    Finally I conclude that Reliance Life Insurance has built up a brand name, which needs to be maintained through continuous feedback, improvement and proactive actions. The company has already sensed the market potential and now it should focus on coming with schemes and products plans to give the market what they want from Reliance Life Insurance.

    [61]

    SWOT ANALYSIS

    STRENGTH

    1) A strong brand name with a high degree of financial support which is the back bone of the company.

    2) Brand leaders in bringing latest financial services for the common man.

    3) An innovator, pre problem seeker and risk taking capabilities.

    4) Systematic, planned and quick actions taken up lead to quick reactions by the company ultimately providing a competitive edge to Reliance Life Insurance.

    WEAKNESS

    1) The data collected cannot be considered as 100% accurate but it is only an estimated figures gathered by the survey.

    2) The analysis so done cannot be regarded as the final as change is the only constant thing which happens.

    OPPORTUNITIES

    1) A huge untapped market.

    2) Emerging middle class, a good potential market.

    3) Increasing employment rate and income.

    4) Increasing financial investments in market.

    THREATS

    1) Neck to Neck competition with ICICI and HDFC with respect to services and policies.

    2) Threats from growing competitors like Bajaj Allianz and Aviva in Insurance sector.

    3) New entrant in the market, Sahara India Life, Om KOTHAK MAHINDRA etc, is an area of concern.

    [62]

    Suggestions and recommendation

    Followings are the recommendations and the suggestions not only for the Reliance life insurance company but also for other private life insurance companies if they want to complete with public/government life insurance companies.

    • 1. Creating positive image: Private companies should try their level best to create positive

    and favourable image in the minds of people i.e. in the minds of their target customers.

    • 2. Training and development to agents: Company must provide training to their agents and

    financial so that they can satisfy customer and doubts effectively.

    • 3. Concern towards customers: Serious concern must be given to the customers as in

    today’s scenario it regarded as “Customer is a king”. In formal words we can say that if can

    customers more loyal towards the company.

    • 4. Co-operation with agents and branch managers: The Company must full co-operate with

    branch managers and agents.

    • 5. Availability of branch offices:

    There

    diameter.

    must be

    the branch offices in

    each 20-30

    Km.

    • 6. Efficient management: The management appointed must be that much capable that it

    can control the whole team and improve the goodwill and image of the company.

    • 7. Sales promotion and marketing: The marketing department must be so aggressive that it

    can have a close watch on the competitors‟ activities. Not only this but also it must take care of the need and wants of the customers also.

    • 8. Incentive schemes and permanency in job: There must be good incentive schemes to be

    designed as these can acts as good motivators for the agents. The scheme of permanent job

    placement must be introduce for those agents who have shown extra ordinary performance.

    • 9. Solution of Grievances: There must regular meetings with the financial consultants and

    agents to motivate them and to solve grievances if there are any.

    [63]

    Limitations

    Although every effort has been in to collect the relevant information through the sources available, still some relevant information could not be gathered.

    Busy Schedule of Concerned Executives:

    The concerned executives were having very busy schedule because of which they were reluctant to give appointment.

    Time:

    The time duration company.

    could not

    provide ample opportunity to study every detail of the

    Unawareness:

    Customers were unaware of many terms related to same while asking to them.

    Confidential Information:

    As the company on account of confidential report has not disclosed some figures. Moreover, in some cases separate accounts of division are not separately maintained thereby, leading to restrictions in study.

    Area:

    Area of study chosen was not large.

    [64]

    BIBLIOGRAPHY AND REFERENCES

    www.reliancelife.com

    www.indiainfoline.com

    www.bimaonline.com

    www.google.com