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A PROJECT REPORT ON
“COMPARATIVE ANALYSIS BETWEEN PRODUCTS OF
RELIANCE LIFE INSURANCE AND OTHER
LIFE INSURANCE COMPANIES”
IN PARTIAL FULFILLMENT OF
Post Graduate Degree in MBA
SUBMITTED
SHRUTI VIKAS KABBE
Reg.No: MB161491
BATCH 2016-2018
I Miss. Shruti Kabbe, hereby declare that the project report entitled “Comparative analysis
between products of Reliance Life Insurance and other life insurance companies” is
prepared by me at “Reliance Nippon Life Insurance” Belagavi, as a part of my MBA program at
Karnatak Law Society’s Institute Of Management Education and Research, belagavi.
I further declare that the information and data given in the report is authentic to the best of my
knowledge and has not formed a basis for the award of any other degree of Rani Channamma
University or any other university. I assure that the institution will use the data collected only for
academic purpose.
This is to certify that Internship Report entitled “Comparative analysis between products of
Reliance Life Insurance and other life insurance companies” undertaken at Reliance Nippon Life
Insurance Company Belagavi, is an individual work of Miss Shruti Kabbe, RCU Examination
Registration No. MB161491 of IIIrd Semester, KLS Institute Of |Management Education And
Research , Rani Channamma University, Belagavi, now being submitted in the partial fulfillment
of requirement, for the award of the Degree of Master of Business Administration of Rani
Channamma University, Belagavi under my supervision and guidance.
I further certify that the work is original work and student has made has best efforts to bring the
work in this format.
DIRECTOR’S CERTIFICATE
This is to certify that Internship Report entitled “Comparative analysis between products of
Reliance Life Insurance and other life insurance companies” undertaken at Reliance Nippon Life
Insurance Company Belagavi, is an individual work of Miss Shruti Kabbe, RCU Examination
Registration No MB161491 of IIIrd Semester, KLS Institute Of |Management Education And
Research, Rani Channamma University, Belagavi, now being submitted in the partial fulfillment
of requirement, for the award of the Degree of Master of Business Administration of Rani
Channamma University, Belagavi.
Date Director
The task would be incomplete without applauding the people who made this work
successful.
I would like to hereby acknowledge their help for their valuable assistance in providing
suggestions, constant guidance throughout the project.
I would like to thank Mr. Abdulrajak Kaladagi, Senior Branch Manager of Reliance
Nippon Life Insurance Belgaum Branch, under whose guidance the project was completed. I am
greatly indebted to him for taking off time from his busy schedule to guide me in the project.
I am grateful to the Director of our college Dr. Shashidar Chiniwar for his whole
hearted support.
I am also grateful to Prof. Ameet Kulkarni for their valuable guidance and constant
encouragement.
Shruti V. Kabbe
EXECUTIVE SUMMARY
Summer Internship Program is conducted by every business school as a part of their curriculum
so that the students get an exposure to the real corporate world. The internship enables the
student get a feel of the working environment of big corporate houses. This report provides the
outline of my work till now as a part of the Summer Internship Program, which corroborate the
application of my theoretical knowledge to the practical business world. For my industrial
spotlight and first exposure to the corporate world, I had selected “RELIANCE NIPPON LIFE
INSURANCE COMPANY”
I joined Reliance Nippon Life Insurance Company on 01/08/2017. On my first day I met my
company guide Mr. Abdulrajak Kaladagi, who is the senior branch manager of reliance life
insurance belgaum branch. I had initial discussion about my project with him. He explained me
in brief the working of insurance sector.
The project is all about comparative analysis of child and retirement products of different
insurance companies. The objective of the project was to analyze and compare the features and
benefits of insurance products of different companies.
In the beginning, we gain an insight about the company and its values and inherit them in our
life, and then studied different types of insurance plans like term plan, endowment plan ULIP
and various other plans.
The project helped me in developing my communication skill and interpersonal skills. During the
tenure of my internship I got the opportunity to learn a lot from the Manager and LPOs of the
organization but above all I learned a lot from my own personal experience.
TABLE OF CONTENTS
S.NO TOPIC PAGE NO
1 INTRODUCTION
Background of the study 1
Statement of the problem 1
Objectives of the study 1
2 RESEARCH METHODOLOGY 2
Research design. 2
Data analysis tools 3
Limitation of study 3
3 COMPANY PROFILE 19
Introduction 19
Vision, Mission 21
Organization Structure 22
CSR activities 24
SWOT Analysis 28
4 COMPARATIVE ANALYSIS BETWEEN THE 29
COMPANIES
5 DATA ANAYLSIS AND INTERPRETATION 57
6 FINDINGS 67
7 CONCLUTION 68
8 BIBLIOGRAPHY 69
9 ANNEXURE 70
RELIANCE NIPPON LIFE INSURANCE, BELAGAVI
The project is limited to comparison of child plans and the retirement plans of three
companies’ i.e. Reliance Nippon Life Insurance, ICICI Prudential Life Insurance, ING
Vysya Life Insurance and HDFC Life Insurance. As ICICI Prudential Life |Insurance
Company and HDFC Life Insurance Company are the major competitors for Reliance
Life Insurance Company.
RESEARCH METHODOLOGY
Type of data collection methods
The task of data collection begin after a research problem had been defined and research
design/plan and checked out while deciding about the method of data collection to be used for
study. The researcher should keep in mind two types of data viz., primary and secondary. The
primary data are those which collected fresh and for first time, and thus happened to be original
character. The secondary data, on the other hand, are those which have already been collected by
someone else and which have already have been passed through the statistical process.
Primary Data:
“Primary data may be described as those data that have been observed and recorded by the
researcher for the first time for their knowledge.”
Secondary Data:
“Secondary data are statistics not gathered for immediate study at hand what for some other
purposes.”
They may be described as those data that have been compiled by some agency other than the
user.
Data Sources:
Mainly in a research process both, Primary and Secondary types of data sources are used. In this
research also we have two kinds of data sources given below:
The instruments used for data collection is a Questionnaire which is been filled by a survey
team through communication and interactive session with the customers of a particular bank.
Each questionnaire represents essence information about a customer. So, a combination of
Interview and Questionnaire as a data collection is employed.
Non-Probability Sampling:
Non Probability sampling is that sampling procedure which does not afford any basis for
estimating the probability that each item in the population has of being included in the sample. It
is also known as deliberate sampling, purposive sampling and judgment sampling.
Sample Size:
The Sample size selected is 60 samples.
Limitation of study
This study is limited to Belagavi city only.
To get accurate responses from the respondents due to their inherent problems. They may
be refusing to co-operate.
Respondents may have to be contacted repeatedly or alternate respondent may have to be
identified.
In India, insurance has deep- rooted history. It finds mention in the writings of Manu
(Manusmrithi) ,Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra).The writings talk in
terms of pooling of resources that could be re-distributed in times of calamities such as fire,
floods, epidemics and famine. This was probably an indicator for modern day insurance.
Modern form of life insurance came to India from England in the year 1818. Oriental Life
Insurance Company started by Europeans in Calcutta was the first life insurance company in
India. It was established to cater the needs of European community. In 1829, the Madras
Equitable had begun transacting life insurance in Madras Presidency.1870 saw the enhancement
of British Insurance Act and in the last three decades of the nineteenth century, the Bombay
Mutual, Oriental, and Empire of India were started in the Bombay Residency. In 1914, the
Government of India started publishing returns of Insurance Companies in India. The Indian Life
Assurance Act, 1912 was the first statutory measure to regulate life business. In 1938, a
comprehensive act called The Insurance Act, 1938 was introduced for effective control over the
activities of insurers. In the year 1956 Life Insurance sector was nationalized and Life Insurance
Corporation came into existence, absorbing 154 Indian, 16 non- Indian in all insurers and also 75
provident societies-245 Indian and foreign insurers in all.
General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd, in
the year 1850 in Calcutta by the British. In 1972 with the passing of the General Insurance
Business (Nationalization) Act, general insurance business was nationalized with effect from 1st
January, 1973.107 insurers were amalgamated and grouped into four companies, namely
National Insurance Company Ltd, the New India Assurance Company Ltd, the Oriental
Insurance Company Ltd and the Unit Linked Insurance Company Ltd. The General Insurance
Corporation of India was incorporated as a company in 1971 and it commence business on
January 1st 1973.
In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former
Governor of RBI to propose recommendations for reforms in insurance sector. Following the
recommendations of the committee report, in 1999 the Insurance Regulatory and Development
Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance
industry. The IRDA was incorporated as a statutory body1n April, 2000.
The IRDA opened up the Indian insurance market in August 2000 by inviting application for
registrations. Foreign companies were allowed ownership of up to 26% .The IRDA has been
granted the powers to frame regulations under Section 114A of the Insurance Act, 1938.From
2000 onwards, IRDA has framed various regulations for carrying on insurance business to
protection of Indian policyholders’ interests including the registration of Life & Non-Life
(General) Insurance companies. The Insurance Laws (Amendment) Act, 2015 was passed to
increase the Ceiling of 26% FDI to 49% and in this manner the Insurance Business in India has
been widely opened for Foreign Giants of Insurance.
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 unforeseen events
Principles of insurance
It means “maximum truth”. Both the parties should disclose all material information regarding
the subject matter of insurance.
(2)Principle of indemnity
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 purpose 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 causaproxima
The cause of loss must be direct and an insured one in order to claim of compensation.
Types of insurance
Life Insurance
General Insurance
Life Insurance
Life insurance is a financial cover for a contingency linked with human life, like death,
disability, accident, retirement etc. By taking life insurance person can have peace of mind and
need not worry about the financial consequences in case of any uncertain events.
Life insurance is a long-term financial instrument that works as a financial backbone to fulfill
your family members’ financial needs at important milestones even in your absence. Most
importantly, it allows the family to pay off any mortgage, liabilities, medical expenses or loans,
so that these liabilities don’t cause an additional burden to them. It is therefore important, to
choose an insurance policy that allows your family to continue the same kind of lifestyle and
cherish the wonderful memories that come along.
To ensure that you’re immediate family has some financial support in the event of your
demise.
To have a savings plan for the future so that you have a constant source of income after
retirement.
To ensure that you have extra income when your earnings are reduced due to serious
illness or accident.
In India, prior to liberalization insurance protection was made available through public sector
insurance companies, namely, Life Insurance Corporation of India (LIC) and the four
subsidiaries of General Insurance Corporation of India (GIC).
By the passing of the IRDA Bill, the Insurance sector has been opened up for private companies
to carry on Insurance business.
Agent: An insurance company representative licensed by the state who solicits and negotiates
contracts of insurance, and provides service to the policyholder for the insurer. An agent can be
independent agent who represents at least two insurance companies or a direct writer who
represents and sells policies for one company only.
Policy owner: The person who owns a life insurance policy. This is usually the insured person,
but it may also be a relative of the insured, a partnership or a corporation.
Beneficiary: The person named in the policy to receive the insurance proceeds at the death of the
insured. Anyone can be named as a beneficiary.
Participating Policy: A life insurance policy under which the company agrees to distribute to
policy owners the part of its surplus that its Board of Directors determines is not needed at the
end of the business year. The distribution serves to reduce the premium the policy owners had
paid.
Non-Participating Policy: A life insurance policy in which the company does not distribute to
policy owners any part of its surplus.
Premium: The payment, or one of the periodic payments, a policy owner agrees to make for an
insurance policy. Depending on the terms of the policy, the premium may be paid in one
payment or a series of regular payments, e.g., annually, semi-annually, quarterly or monthly. The
premium charged reflects the expectation of loss, expenses and profit contingencies.
Sum Assured: The sum assured is the amount of money an insurance policy guarantees to pay up
before any bonuses are added.
Death Benefit: Death benefit is the amount on a life insurance policy, annuity or pension that is
payable to the beneficiary when the insured or annuitant passes away.
Cash Surrender Value: The amount available in cash upon voluntary termination of a policy by
its owner before it becomes payable by death or maturity. The amount is the cash value stated in
the policy minus a surrender charge and any outstanding loans and any interest thereon
Grace period :A grace period is the provision in insurance contracts that allows payment of
premium to be received for a certain period of time after the actual due date(15 days form
monthly payment mode and 30 days for yearly payment mode).
Free Look Provision :A certain amount of time provided (usually between 10-30 days) to an
insured in order to examine the insurance policy and if not satisfied, to return it to the company
for a full refund.
Rider -An endorsement to an insurance policy that modifies clauses and provisions of the policy,
including or excluding coverage.
Underwriter - The person who reviews the application for insurance and decides if the applicant
is acceptable and at what premium rate.
Underwriting - The process by which a life insurance company determines whether it can accept
an application for life insurance, and if so, on what basis so that the proper premium is charged.
Insurance is not an investment rather it is a hedge against the future probable losses.
It gives you the comfort that in the event of any loss from unforeseen events will be
compensated by the insurance companies.
One has to pay premiums regularly to the companies providing insurance in order to
enjoy the benefits of insurance.
It can be of many types like life insurance, fire, marine, health insurance and so on and
one can take any of the above polices depending on the risk with which an individual is
exposed to.
Insurance policies can be modified and offered to people depending on their risk profile
and the need of the insurer
There is a limit to the amount by which an insurance company will compensate for the
loss incurred by the insurer. The amount is mentioned in the insurance policy and the
more the amount of insurance cover the more will be the premium which one has to pay
to the company.
A person can take more than one policy, in other words there are no restrictions on the
number of policies which one can take
Life Cover: This is the most important and primary benefit of any life insurance policy.
The Life Cover is the amount that your insurance company pays to your nominee* in
case of an unfortunate event during the policy term. This amount ensures that your loved
ones’ future is secure, even in your absence.
Long-term Savings: Life Insurance is also a good way to systematically save and build
wealth for the future. It is an ideal long-term savings tool that can help you meet your
financial needs after retirement or even fulfill a future goal like your child’s
marriage. Thus, with life insurance, you get double benefits of Protection as well as
Savings.
Life Stage Specific Planning: Life insurance is an option that offers products tailor-
made for various life stages. At every stage of life, you and your family have certain
goals that you need to plan for. These goals can be buying a new house, planning for the
education or marriage of your children, creating wealth for your retirement, and much
more.
Tax saving: Under the Income Tax Act, 1961, you can save tax on your hard earned
money by investing in Life Insurance products and solutions. You can get tax advantage
at different stages of your life insurance policy. Tax benefits are subject to conditions u/s
80C, 80CCC, 80D, 10(10A) and 10(10D) of the Income Tax Act, 1961. Tax laws are
subject to amendments from time to time.
There are currently a total of 24 Life Insurance companies in India. Of these Life Insurance
Corporation of India is the only public sector insurance company. All others are private
insurance.
Private life insurance companies in India got access to the life insurance sector in the year 2000.
Most private players have tied up with international insurance giants for their life insurance
foray. Companies many of these are joint ventures between public/private sector banks and
national/international insurance financial companies
Term Insurance
you can choose to have protection for a set period of time with Term Insurance. In the
event of death or Total and Permanent Disability (if the benefit is offered), your
dependants will be paid a benefit. In Term Insurance, no benefit is normally payable if
the life assured survives the term.
Endowment Policy
An Endowment Policy is a savings linked insurance policy with a specific maturity date.
Should an unfortunate event by way of death or disability occur to you during the period,
the Sum Assured will be paid to your beneficiaries? On your surviving the term, the
maturity proceeds on the policy become payable.
Children Policies
These types of policies are taken on the life of the parent/children for the benefit of the
child. By such policy the parent can plan to get funds when the child attains various
stages in life. Some insurers offer waiver of premiums in case of unfortunate death of the
parent/proposer during the term of the policy.
Immediate Annuity
In case of immediate Annuity, the Annuity payment from the Insurance Company
starts immediately. Purchase price (premium) for immediate Annuity is to be paid in
Lumpsum in one installment only.
Deferred Annuity
Under deferred Annuity policy, the person pays regular contributions to the Insurance
Company, till the vesting age/vesting date. He has the option to pay as single
premium also. The fund will accumulate with interest and fund will be available on
the vesting date. The insurance company will take care of the investment of funds and
the policyholder has the option to encase 1/3rd of this corpus fund on the vesting age /
vesting date tax free. The balance amount of 2/3rd of the fund will be utilized for
purchase of Annuity (pension) to the Annuitant
Unit Linked Insurance Policies (ULIPs) offer a combination of investment and protection and
allow you the flexibility and choice on how your premiums are invested. In unit linked plans,
the investment risk portfolio is borne by you as you are the investor typically, the policy will
provide you with a choice of funds in which you may invest. You also have the flexibility to
switch between different funds during the life of the policy. The value of a ULIP is linked to the
prevailing value of units you have invested in the fund, which in turn depends on the fund's
performance. In the event of death or permanent disability, the policy will provide the Sum
Assured (to the extent you are covered) so that you can take comfort in knowing that your family
is protected from sudden financial loss. A ULIP has varying degrees of risk and rewards. There
are various charges applicable for Unit Linked Policies and the balance amount out of the
premium is only invested in the fund/funds chosen by you. It is important to ask your insurer or
agent or broker questions to understand the sum total of charges that you have to incur. It is
important to assess your risk appetite and investment horizon before deciding to buy a ULIP
policy. You must also read the terms and conditions of the policy carefully to understand the
features of the policy including the lock-in period, surrender value, surrender charges etc.
All the types of plans mentioned above can be offered under ULIP plans.
COMPANY PROFILE
Introduction
Reliance Nippon Life Insurance Company is amongst the leading private sector life insurance
companies in India. Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd.
of the Reliance - Anil Dhirubhai Ambani Group.
It is amongst the leading private sector life insurance companies in India in terms of individual
WRP (weighted received premium) and new business WRP. The company is one of the largest
non-bank supported private life insurers with over 10 million policyholders, a strong distribution
network of over 700 branches and over 75,000 advisors as on March 31, 2017. The company
holds one of the top Claim Settlement Ratios in the industry which stands at 95.21% as of March
31, 2017.
Rated amongst the Top 4 Most Trusted Life Insurance Service Brands by Brand Equity‘s
Most Trusted Brands Survey 2016, the company’s vision is “To be a company people are proud
of, trust in and grow with; providing financial independence to every life they touch.” With this
in mind, Reliance Nippon Life caters to five distinct segments, namely Protection, Child,
Retirement, Saving & Investment, and Health; for individuals as well as Groups/Corporate
entities.
Reliance Nippon Life Insurance Company is a part of Reliance Capital, one of India's leading
private sector financial services companies, which ranks among the top private sector financial
services and non-banking companies, in terms of net worth. Reliance Capital has interests in
asset management and mutual funds, stock broking, life & general insurance, proprietary
investments, private equity and other activities in financial services.
In FY'16, post the enabling regulations, Nippon Life increased its stake in Reliance Life from
26% to 49%, subsequent to the receipt of all regulatory approval. Nippon Life Insurance, also
called Nissay, with 25% market share is Japan's largest private life insurer with revenues
ofRs. 3,66,198 crore (US$ 55 Billion) and profits of over Rs. 41,380 crores (US$ 6 billion) as
of Mar 31,2016. The Company, with over 29 million policies in Japan, offers a wide range of
products, including individual and group life and annuity policies through various distribution
channels and mainly uses face-to-face sales channel for its traditional insurance products. The
company primarily operates in Japan, North America, Europe and Asia and is headquartered in
Osaka, Japan. It is ranked 114th in Global Fortune 500 firms in 2016.
Key Persons
Company vision
“To be a Company people are proud of, trust in and grow with providing financial
independence to every life we touch”
Planning people's future and standing by them in their hour of need goes beyond business, it
takes a selfless intent of thinking well for others. Our advisors enjoy high credibility and stature
in society, having helped not only shape future of families, but also recuperate in tough times.
Company Mission
Create enduring and sustainable value for all the stakeholders through dependable, effective,
transparent life pension and health solutions.
Company Goals
Reliance Life Insurance would strive hard to achieve the three goals mentioned below
ORGANIZATION STRUCTURE
Branch Manager
Protection plan
Child Plan
Retirement Plan
Saving Plans
Health Plans
Brand Equity
Voted as one of the 'Most Trusted Brands' in Life Insurance Category in 2015
Best Website
Bronze
Effies, 2015
In the "Digital: Online/Mobile Communication" Category for the 'Greatest Fan' campaign
EMVIEs, 2014
In the ‘Best Media Innovation’, ‘Best Case Study’ and ‘Best Integrated Campaign’ categories for
the 'Greatest Fan' campaign
Reliance Life has been voted as one of the Top 200 Brands in India by Economic Times &
Nielsen Best Brands Study
Reliance Life was awarded the 'Business Continuity Team of the Year' award by Business
Continuity Institute, UK
Gold
In the ‘Social Media and Digital Marketing Excellence’ category for the 'Greatest Fan' campaign
Bronze
In the ‘Outdoor Media Plan of the Year’ category for the ‘Greatest Fan’ campaign
Gold
In the ‘Best CSR Initiative’ category for the ‘Greatest Fan’ campaign
Bronze
In the ‘Integrated Digital Marketing Campaign’ category for the ‘Greatest Fan’ campaign
Silver
In the ‘Digital Marketing Campaign’ category for the ‘Greatest Fan’ campaign
Silver
In the ‘Best Integrated Campaign for Social Cause’ category for the ‘Boundaries for Books’
Campaign
Winner
SWOT ANALYSIS
Minimum Maximum
Entry Age 5 years 65 years
Maturity Age 18 years 75 years
Policy Term(Regular 5 years 35 years
Premium)
Policy Term(Single Premium) - 15 years
Sum Assured Rs 25000 As determined
Premium Rs 500000 (age below Rs 2000 (Annual)
18years) Rs 1500 (Half- Yearly)
Rs 750 (Quaterly )
Rs 250 (Monthly)
Premium Frequency Rs 25000 No limit
Half-yearly 1.02
Quarterly and Monthly 1.04
Minimum Maximum
Entry Age 18 59
Expiry Age 23 64
Policy Term 5 30
Sum Assured Rs 1,00,000 Basic sum assured
What is an Accidental Death & Total and Permanent Disablement Benefit Rider?
If the life assured becomes totally and permanently disabled or dies due to an accident, then this
rider will give you additional protection. By selecting this rider you will safeguard yourself
against any unexpected expenditure that an accident could cause.
In case of death due to an accident, your family will receive an additional benefit equal to the
Accidental Death & Total and Permanent Disablement sum assured that you selected.
In case of total and permanent disability of the life assured, you will receive the Accidental
Death & Total and Permanent Disablement sum assured in 10 equal, annual installments for 10
years. Your future premiums will be waived subject to a maximum of Rs 40,000 per annum. On
the maturity date or on the unfortunate death of the life assured, the remaining unpaid
installments, if any, will be paid in a lumpsum. The accident cover component will cease if the
life assured is totally and permanently disabled.
Minimum Maximum
Entry Age 18 59
Expiry Age n.a. 64
Sum Assured Rs 25,000 Rs 50,00,000*
The sudden onset of a major illness may cause worries and unexpected expenditures. The
optional Critical Conditions Rider provides financial relief in such cases. The Critical Conditions
Rider benefit is the payment of a lump sum amount chosen by you, while purchasing the
Reliance Endowment Plan plan as a cover against major illnesses that can afflict you. Reliance
Life Insurance’s Critical Conditions Rider covers ten major critical conditions-
· Cancer
· Coronary artery by-pass graft surgery
· Heart attack
· Aorta surgery
· Heart valve replacement
· Kidney failure
· Stroke
· Major organ transplant
· Coma
· Paralysis
Minimum Maximum
Entry Age 18 55
Expiry Age n.a. 64
Sum Assured Rs 1,00,000Rs 10,00,000*
If I put my money in a Bank Fixed Deposit, I can encash it or take a loan any time I want…
If you need to fund any unexpected requirements, we may grant you a policy loan of up to 90%
of the surrender value of the policy, based on the terms and conditions at that time.
This facility is available on your regular premium plan once your policy acquires a paid-up
value. This facility is available immediately, in case of the single premium plan. Interest will be
charged on any outstanding loan at a rate of interest set by us, from time to time.
All rider benefits will automatically terminate if the policy lapses, is made paid-up, matures,
expires, or is surrendered, provided that termination of these benefits shall be without prejudice
to any claim arising prior to such termination.
What else?
Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to
participate in the unfolding Reliance story and put their hard-earned money in the Reliance
Textile IPO, promising
them, in exchange for their trust, substantial return on their investments. It was to be the start of
one of great stories of mutual respect and reciprocal gain in the Indian markets.
Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of the greatest
growth stories in corporate history anywhere in the world, and went on to become India’s largest
private sector enterprise.
Through out this amazing journey, Dhirubhai always kept the interests of the ordinary
shareholder uppermost in mind, in the process making millionaires out of many of the initial
investors in the Reliance stock, and creating one of the world’s largest shareholder families.
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
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.
which the premiums are to be paid is decided at the beginning. The longer the duration, the lower
is the premium.
The unique feature is that risk cover continues throughout your life beyond your premium paying
term.
This product participates in the profits throughout your life time, provided premiums have been
paid up to date.
When and how much will I get if I pay the premiums for the full duration of the policy?
Even though you have paid your premiums only over a limited premium paying term, the life
cover continues up to age 85. You have the option of extending the cover even after age 85.
On attaining your 85th birthday you can choose to terminate the policy. In that case, you will be
paid the sum assured as well as the accrued bonuses. If you do not wish to avail of this maturity
option at age 85, then the risk cover continues till your 99th birthday, or is terminated earlier in
case of death.
If I put my money in a Bank Fixed Deposit, I can encase it or take a loan any time I want…
Loans can be taken against the surrender value of the policy, after three years' premiums have
been paid. This benefit comes to you without taking away your valuable life cover.
What else?
There is the usual exemption from tax, for premiums paid, as per the IT Act. The money you
have invested earns interest and comes to you in the form of terminal benefits and Bonus,
without the insecurities attached to the ups and downs of the money market. Further, at Reliance
Life Insurance, we offer you the best of courtesy, prompt service and a high level of financial
security.
choice and units are allocated depending on the price of units for the fund/funds.
The value of your Unit Account is the total value of units that you hold in the fund/funds. The
Mortality Charges and Policy Administration Charges are deducted through cancellation of units
whereas the Fund Management Charge is priced in the unit value.
Benefits:
Life Cover Benefit: You can choose the basic Sum Assured within the minimum and maximum
levels mentioned below
Minimum Sum Assured:
· Regular Premium: Annualized Premium for 5 years or for half the Policy term
· Single Premium: 125% of the single premium
Maximum Sum Assured: No Limit (Rs 500,000 for age up to 12 years)
In case of unfortunate loss of life, your Beneficiary will get sum Assured or Unit Account Value
whichever is higher.
Maturity Benefit: On survival, at maturity the value of your Unit Account will be paid out.
Rider Benefit: You can add the Accidental Death & Accidental Total and Permanent
Disablement Benefit Rider (available only with regular premium option).
This benefit doubles the life coverage in case of accidental death or accidental total and
permanent disablement at a very nominal additional cost. The maximum cover is Rs. 50,00,000
per life.
In case of accidental total and permanent disablement, 1/10th of the Sum Assured will be paid at
the end of each year for ten years. If the total and permanent disablement has commenced, the
Accidental Death Benefit Cover ceases.
In case of maturity or on death of the Assured, after payment of installments of Accidental Total
and Permanent Disablement Benefit, the remaining unpaid installments if any will be paid in one
lump sum.
Accidental total and permanent disablement means disability caused by bodily injury, which
causes permanent inability to perform any occupation or to engage in any activities for
remuneration or profits. This disability should last for at least 6 months before being eligible for
Accidental Total and Permanent Disablement Benefits.
Total and permanent disablement includes loss of both arms or both legs or one arm and one leg
or of both eyes. Loss of arms or legs means dismemberment by amputation of the entire hand or
foot. Loss of eyes means entire and irrecoverable loss of sight.
Exclusions to Rider Benefit
Reliance Life Insurance will not be liable to pay any Accidental Death Benefit Claim or Total
and Permanent Disablement Claim which results directly or indirectly from any one or more of
the following:
· An act or attempted act of self – injury
· Participation in any criminal or illegal acts
· Being under the influence of alcohol or drugs
COMPARATIVE ANALYSIS
ING Vysya Life
The Company aims to make customers look at life insurance afresh, not just as a tax saving
device but as a means to add protection to life. The one thing we hold in highest esteem is 'life'
itself. We believe in enhancing the very quality of life, in addition to safeguarding an individual's
security. Our core values are therefore defined as Professional, Entrepreneurial, Trustworthy,
Approachable and Caring.
The Company’s portfolio offers products that cater to every financial requirement, at any life
stage. We believe in continuously developing customer-driven products and services and value
being accessible and responsive to the needs of our customers.
In fact, the company has developed the LifeMakerTM. a simple method which can be used to
choose a plan most suitable to a specific customer based on his needs, requirements and current
life stage. This tool helps you build a complete financial plan for life, whether the requirement is
Protection, Savings or Investment, Retirement
Corporate Objective
At ING Vysya Life, we strongly believe that as life is different at every stage, life insurance must
offer flexibility and choice to go with that stage. We are fully prepared and committed to guide
you on insurance products and services through our well-trained advisors, backed by competent
marketing and customer services, in the best possible way.
It is our aim to become one of the top private life insurance companies in India and to become a
cornerstone of ING’s integrated financial services business in India.
Our Mission
“To set the standard in helping our customers manage their financial future”.
Partners
A glance at our equity partners:
· ING Group
· Exide Industries Limited
· Gujarat Ambuja Cements Limited
· Enam Group
Additional Benefits
Product Features
Rider Benefits Increase your coverage at a nominal extra cost by opting for any of our riders -
Loan Benefit After paying a premium for three years, you will be eligible for a loan.
Tax Benefits Tax benefits under Section 88 and Section 10 (10D) are available on all our life
insurance plans and riders.
Look-in Period This is a 15 day period for you to go through the terms and conditions and decide
upon taking or
cancelling the policy.
Eligibility Minimum entry age: 12 years
SAFAL JEEVAN
ENDOWMENT PLAN
Low Premium
In-built Accident Cover
No Medical and Underwriting
Our dreams in life never stop growing. And so also, our needs. And to see these dreams turn into
a reality we need to build them one by one. And, fulfill them regardless of the risks that we face
due to an uncertain future. So whatever your dreams in life, be it towards building your new
home, educating your children or even taking that long deserving holiday, ING Vysya Life
Insurance can help you and your family reach them. No matter what.
The unique feature of the Safal Jeevan Endowment Plan is that it provides an opportunity to
decide on the cover of your policy.
It gives you the option to choose from a convenient range of fixed terms and premiums. The plan
ensures an easy and hassle free
process, yet offering you a comprehensive protection and savings proposition. Thus making it
the simplest life insurance plan. Apart
from that it ensures, Premium is payable annually, half-yearly or quarterly during the policy
term. The policy coverage terms are fixed at 10,15 and 20 years.
This plan is ideal if you are planning on taking your first life insurance policy. It offers you
protection in an easy, hassle free way and helps you secure your goals and dreams despite the
odds. All you have to do is to choose a suitable policy term and decide on the frequency and
amount of premium payment.
Under this plan you make payment of a chosen premium for the term opted. The Sum Assured
and non-guaranteed compound reversionary bonuses if any are payable on maturity or on death,
whichever is earlier.
The minimum entry age is 18 (last birthday).
The maximum entry age is 45 (last birthday).
The maximum premium ceasing/maturity age is 60.
Surrender Value (SV) is available after at least 3 full years premiums are paid. You can avail a
loan of up to 90% of the Surrender Value.
Other Features
Exclusions
In case of death due to suicide within one year of date of risk commencement benefits under this
policy are not payable.
In case of death due to reasons other than accident, within 3 months from date of risk
commencement, benefits under this policy are not paid and instead all the premiums paid are
refunded.
In addition the following exclusions will apply on additional sum assured payable on death due
to accident.
Any disease or infection.
Intentional self-inflicted injury, suicide or attempted suicide, while sane or insane.
Life Assured being under the influence of drugs, alcohol, narcotics or psychotropic substances
unless taken in accordance
with the lawful directions and prescription of a qualified and registered medical practitioner.
War (declared or undeclared), invasion, civil commotion, riots, revolution or any war-like
operations.
Creating Life Money Back Plan
Tax Benefit
Prohibition of Rebate
All Premiums paid under this Plan to effect or to keep in force insurance on the life of eligible
persons may be eligible for deduction
under Section 80C of the Income Tax Act.
Benefits paid under this Plan, including the sum allocated by way of Bonus are exempt from
Income Tax under Section 10(10D) of
Income Tax Act, 1961.
This leaflet aims at providing you a broad overview of the Creating Life Money Back Plan
offered by us. However, to choose this or any other life insurance Plan that is to your advantage,
ask an ING Vysya Life Insurance Advisor to work out a detailed Financial Plan for you.
Section 41 of the Insurance Act, 1938 states:
1. No person shall allow or offer to allow, either directly or indirectly, as an inducement to any
person to take out or renew or
continue an insurance in respect of any kind of risk relating to lives or property in India, any
Provided that acceptance by an insurance agent of commission in connection with a Policy of life
insurance taken out by
himself on his own life shall not be deemed to be acceptance of a rebate of Premium within the
meaning of this subsection if at
the time of such acceptance the insurance agent satisfies the prescribed conditions establishing
that he is a bonafide
insurance agent employed by the insurer.
2. Any person making default in complying with the provisions of this section shall be
punishable with fine that may extend to five
hundred rupees.
Maturity Benefit
Death Benefit
Who can opt for the Creating Life Money Back plan?
What are the available Policy durations?
What is the minimum Premium payable?
How often do you pay the Premium?
Rider Benefits
Exclusions
Discontinuance of the Policy
Free Look
On the Policy Maturity Date, 20% of the Sum Assured along with attached Bonuses will be paid.
On death of the Life Assured, an amount equivalent to the Sum Assured is payable and all future
Premiums payable are waived
and the Policy continues for the entire Policy Term as planned.
All those who are aged 18 years or over but less than
45 years (age last birthday) for 25 years Policy Term
50 years (age last birthday) for 20 years Policy Term
55 years (age last birthday) for15 years Policy Term
Based on your current age the Policy is available for 15, 20 and 25 years Policy Term.
COMPARATIVE ANALYSIS
ICICI Prudential Life
Overview:
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier
financial powerhouse and Prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).
ICICI Prudential's equity base stands at Rs. 11.85 billion with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. In the financial year ended March 31, 2005, the
company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780
crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors;
as well as 7 banc assurance and 150 corporate agent tie-ups. For the past four years, ICICI
Prudential has retained its position as the No. 1 private life insurer in the country, with a wide
range of flexible products that meet the needs of the Indian customer at every step in life.
Our vision:
To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class
people and service.
Promoters
ICICI Bank
ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with over
50 years of financial experience and with assets of Rs. 1812.27 billion as on 30th June, 2005.
ICICI Bank offers a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialized subsidiaries and
affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset
management. ICICI Bank is a leading player in the retail banking market and has over 13 million
retail customer accounts. The Bank has a network of over 570 branches and extension counters,
and 2,000 ATMs.
Prudential plc
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the
US and Asia, provides retail financial services products and services to more than 16 million
customers, policyholders and unit holders worldwide. As of June 30, 2004, the company had
over US$300 billion in funds under management. Prudential has brought to market an integrated
range of financial services products that now includes life assurance, pensions, mutual funds,
banking, investment management and general insurance. In Asia, Prudential is the leading
European life insurance company with a vast network of 24 life and mutual fund operations in
twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand and Vietnam.
Management
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the
finance industry both from India and abroad.
Mr. K.V. Kamath, Chairman
Mr. Mark Norbom
Mrs. Lalita D. Gupte
Mrs. KalpanaMorparia
Mrs. ChandaKochhar
Mr. HT Phong
Mr. M.P. Modi
Mr. R Narayanan
Mr. KekiDadiseth
Ms. Shikha Sharma, Managing Director
Mr. N.S. Kannan, Executive Director
Management Team
Products
(Endowment & Child Plan)
Twin Advantage of Saving and Life Cover
All through your life, you have certain responsibilities; your children's education, higher
schooling, marriage expenses and many more such
expenses. As a responsible individual it’s undoubtedly your foremost concern to ensure that your
family's happiness is ensured for the times to come and secured from any eventuality that might
come up. For this you need a plan that offers you both, savings and protection.
ICICI Prudential Life Insurance Company Limited, India's No.1 private life insurance company,
offers you Save’n’Protect – an ideal plan for those who want to accumulate funds on a regular
basis while
enjoying insurance protection.
What does Save'n'Protect offer you?
It is a fixed term policy that combines savings with life cover. In this plan, you pay premier
regularly during the term. On death of the life assured up to age 7 years, the basic premium paid
will be returned
without interest.
On the death of the life assured after age 7 years, the beneficiary will get the sum assured, the
guaranteed additions @ 3.5% compounded annually for the first 4 years and the vested bonuses.
Once the policy matures, i.e. at the end of the term, you can get the full sum assured and
guaranteed additions @ 3.5% compounded annually for the first 4 years as well as the vested
bonuses.
This provides you with a unique feature which gives you additional extended term insurance
cover for five years after the maturity
date of the policy, for 50% of the sum assured, without any fresh evidence of health. You will
not have to pay any premier for the same.
For protection to your family against any health hazards or unfortunate
eventualities we offer you the following riders with this plan:
Sum Assured: Amount of life insurance he needs to develop his potential and cover which will
be paid in case of death to be successful.
Maybe your child aspires to be a pilot one day or even an astronaut.
Guaranteed Additions: These He might want to study medicine or will be provided on the Sum
become an architect, scientist, Assured at the rate of 3.5% compounded annually for the engineer
or software designer. You !
Vested Bonus: These are additions declared per the schedule selected by you. by the Company
from the 5th year onwards !
Total Premium Waiver: In the two options to receive guaranteed pay over and above the
premium amount unfortunate event of death of parent, all educational benefits, no matter what
the will cover you against other unfortunate future premiums are waived. This means,
uncertainties in your life. circumstances during the tenure of the surviving spouse need not pay
the
COMPARATIVE ANALYSIS
HDFC STANDARD LIFE INSURANCE
Overview
HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life insurance
companies, which offers a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Ltd.), India’s leading
housing finance institution and one of the subsidiaries of Standard Life plc, leading providers of
financial services in the United Kingdom. Both the promoters are well known for their ethical
dealings and financial strength and are thus committed to being a long-term player in the life
insurance industry – all important factors to consider when choosing your insurer.
Our key strengths
Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard Life has the financial
expertise required to manage your long-term investments safely and efficiently.
Range of Solutions
We have a range of individual and group solutions, which can be easily customized to specific
needs. Our group solutions have been designed to offer you complete flexibility combined with a
low charging structure.
Track Record so far
Our cumulative premium income, including the first year premiums and renewal premiums is Rs.
1532.21 Crores Apr-Mar 2005 - 06.
We have covered over 1.6 million individuals out of which over 5,00,000 lives have been
covered through our group business tie-ups.
BOARD OF DIRECTORS
Products
(Endowment & Child Plan)
Provides lump sum payment (basic Sum Assured plus any bonus additions) on survival up to
maturity date
Very flexible benefit options and payment options
In case of your unfortunate demise during the policy term, this participating (‘With Profits’)
insurance plan will pay your family the Sum Assured (together with the attached bonuses) you
had chosen.The plan receives simple Reversionary Bonuses, which are usually added annually.
At the end of the term an additional Terminal Bonus may be paid depending on the performance
of the underlying investment.
CHILDREN'S PLAN
The HDFC Children’s Plan is designed to secure your child’s future by giving your child (the
beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunate demise, early in
the policy term. The premiums, paid by you, are invested by the company to give you good long-
term returns. The plan receives simple Reversionary Bonuses, which are usually added annually.
At the end of the term an additional Terminal Bonus may be paid depending on the performance
of the underlying investment (See ‘Bonuses’ for more details).
Gender
Valid Cumulative
Frequency Percent Percent Percent
Valid male 37 61.7 61.7 61.7
Female 23 38.3 38.3 100.0
Total 60 100.0 100.0
Interpretation:
The information collected through the survey says that 62% respondents are males and 38% are
females.
2.
Marital status
Valid Cumulative
Frequency Percent Percent Percent
Valid single 27 45.0 45.0 45.0
Married 33 55.0 55.0 100.0
Total 60 100.0 100.0
Interpretation:
The information collected through the survey says that 45% respondents are single and 55% are
married.
3.
Qualification
Valid Cumulative
Frequency Percent Percent Percent
Valid High 13 21.7 21.7 21.7
School
PUC 12 20.0 20.0 41.7
Graduate 31 51.7 51.7 93.3
Post 4 6.7 6.7 100.0
Graduate
Total 60 100.0 100.0
Interpretation:
The information collected through the survey says that 21.7% respondents have high school
qualification, 20% have PUC qualification, 51.7% are Graduates and 6.7% are Post-Graduates.
4.
Employment Category
Valid Cumulative
Frequency Percent Percent Percent
Valid Self 23 38.3 38.3 38.3
Employeed
Interpretation:
The information collected through the survey says that 38.3% respondents are self-employeed,
31.7% are Businessman and 30% are salaried.
5.
income level per annum
Valid Cumulative
Frequency Percent Percent Percent
Valid up to 19 31.7 31.7 31.7
100000
100000- 21 35.0 35.0 66.7
150000
150000- 16 26.7 26.7 93.3
200000
200000- 2 3.3 3.3 96.7
250000
250000 2 3.3 3.3 100.0
& Above
Total 60 100.0 100.0
Interpretation:
The information collected through the survey says that 31.7% respondents have income less than
1lakhs 35% have income between 1,00,000 and 1,50,000, 26.7% have income between 1,50,.000
and 2,00,000, 3.3% people have income between 2,00,000 and 2,50,000 and 3.3% have income
more than 2,50,000.
6.
Do you have life insurance
Valid Cumulative
Frequency Percent Percent Percent
Valid Yes 39 65.0 65.0 65.0
No 21 35.0 35.0 100.0
Total 60 100.0 100.0
Interpretation:
The information collected through the survey says that 65% respondents have life insurance and
35% doesn’t have life insurance.
7.
Valid Cumulative
Frequency Percent Percent Percent
Valid Saving Plan 16 26.7 26.7 26.7
Interpretation:
The information collected through the survey says that 26.7% respondents are interested in
savings plan, 55% are interested in Investment plan and 18.3% are interested in pension plan.
8.
Interpretation:
The information collected through the survey says that 13.3% respondents want to take life
insurance from HDFC, 15% want to take life insurance from ICICI, 20% want to take life
insurance from ING VYSYA, 46.7% want to take life insurance from Reliance and 5% want to
take life insurance from others.
9.
Valid Cumulative
Frequency Percent Percent Percent
Valid Yes 30 50.0 50.0 50.0
No 30 50.0 50.0 100.0
Total 60 100.0 100.0
Interpretation:
The information collected through the survey says that 50% respondents are interested in child
plan for protection and savings, and 50% are not interested in child plan for protection and
savings.
10.
Valid Cumulative
Frequency Percent Percent Percent
Valid Endowment 14 23.3 23.3 23.3
plan
ULIP plan 14 23.3 23.3 46.7
Retirement 20 33.3 33.3 80.0
Plan
Child Plan 12 20.0 20.0 100.0
Total 60 100.0 100.0
Interpretation:
The information collected through the survey says that 23.3% respondents are interested in
Endowment plan, 23.3% are interested in ULIP plan, 33.3% are interested in Retirement plan
and 20% are interested in Child plan.
FINDINGS
1. The company is targeting on emerging financial market in India with great potential.
2. Majority of the respondents are from salaried class.
3. Literacy level of the respondents is high, majority of them are educated.
4. Mainly, male respondents are having Life Insurance then female.
5. Mostly married respondents are having Life Insurance.
6. Average annual income of respondents is between 1-1.5 lacs.
7. Majority of respondents are having a Life Insurance.
8. Most of respondents are holding a account with Reliance Life.
CONCLUSION
The practicality of being associated with a Live Project was revealed by this survey. 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.
Reliance Life Insurance products have tremendous amount of potential and demand in the
market. The name speaks for itself and the customer associate themselves with the brand name.
Reliance Life Insurance have 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.
BIBLIOGRAPHY
WEBPAGES
www.reliancelife.co.in
www.hdfcinsurance.com
www.iciciprulife.com
www.ingvysyalife.com
http://en.wikipedia.org/wiki/Life_Insurance_-_India"
ANNEXURE
QUESTIONNAIRE
General Information:-
1. Name: _________________________________________________________
2. Age: _________
7. Annual Income/Salary:
a)<1 lac
b) 1 - 1.5 lacs
c).5 – 2 lacs
a)Yes
b)No
a)Savings Plan
b)Investment Plan
c)Pension Plan
10. From which of the company do you want to have a Life Insurance?
a)HDFC Standard
b)ICICI Pru
c)INGVysya Life
d)Reliance Life
e)Others
11. Are you interested in Children Plans for Protection & Saving for your child?
a)Yes
b)No
12. Sir/Madam, Which type of Life Insurance you are having or interested in having?
a)Endowment Plan
b)ULIP Plan
c)Retirement Plan
d)Child Plan
e)Term Plan