Industrial Project

Report
On
RELIANCE LIFE INSURANCE
COMPANY LIMITED

Under the
guidance of
Mrs Pragyan
Pushpanjali

Submitted
by:Priyadarshani
Kumari Imba,
6th sem
R.no-

25
CUJ/I/2010/IMBA
/28

[1]

ACKNOWLEDGE
MENT
"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]

CONTEN
TS
S.No. Particulars
1
Insurance overview
Meaning of Insurance
Importance of Insurance
Principles of Insurance
Insurable laws
History of Insurance
Time line in Insurance history
Types of insurances
World existence and Indian
existence
Insurance law regulations in
India
Entry of private companies:
A landmark decision
Regulatory authorities
Meaning of Life Insurance
History of Life Insurance
Key features of Life Insurance
Benefts of Life Insurance
2
Insurance in India
Insurance companies
Top Insurance Policies
India insurance industry major
problems
3
INTRODUCTION
TO THE COMPANY
Executive Summary
About Reliance Life Insurance
History
Achievement
Role of IT at Reliance Life
Insurance
Mission
Core Values
Future Plans
Head Offce
Branches
4
Product mix
Solutions for Individuals
Solutions for group
Traditional Plans
Unit linked Plans
5
Comparative Analysis

[3]

Page No.
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5-6
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17-21
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7
8
9
10
11
12
13
14
15
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Why Compare Best Life

Insurance Policies in
India
Why Compare Best Life
Insurance Plans in
India
Comparative Analysis Of Top 10
Life
Insurance Companies
Subsequent Growth rate in
insurance industry
Insurance industry contribution
to GDP
Comparing Reliance Life
Insurance,
ResearchMax
objective
Research Methodology
Research Design
Research constraints
Benefts of this project
Compare reliance child life insurance
and LIC
komal
Marketjeevan
share of Life Insurance
industryfund of life insurance industry
Capital
Distribution channel
Promotional Programmes & Target
Segment and Conclusions
Findings
Swot Analysis
Recommendations/Suggestions
Limitations
Bibliography and References

[4]

41
41-42
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48

49
49-50
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52-55
56-57
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59-60
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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
INSURANCE

OF

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 ones family against possible
losses on account of risks and perils. It provides financial compensation for
the losses sufered due to the happening of any unforeseen events.

IMPORTANCE
INSURANCE

OF

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.
[5]

Another major issue is the efects 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
oficers of LIC etc. So it ofers 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
INSURANCE

OF

An insurance contract is based on some basic principles of insurance.

(1) Pr i nci pl e of Uberr i ma Fi d es or Pr in cip l e of
utmost goo d f aith
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
subrogation

of

This means the insurer has the right to stand in the place of the insured
after settlement of claims in so far as the insureds 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.

[6]

(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.

Warrant
ies
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.

[7]

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 Lloyds Cofee House in London where risk bearers used to meet to
transact business. This coffee house became so popular that Lloyds
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 Indias
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
insurance include:

of

general

Motor insurance
Fire/ House owners/ Householders insurance
Personal accident insurance
Medical and health insurance
Travel insurance

Insurance:- World
Indian existence

existence

and

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
sufered 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 sufering 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 worlds population in 2005
was estimated at
6450 mn and its 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
markets value.

Insurance
in india:-

scenario

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 stateowned 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. LICs 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
regulations in India

law

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
landmark decision

companies:

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 diferent 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:

[12
]

 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

Tarif 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
right
s.

[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
INSURANCE

LIFE

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

owner would receive, after any applicable
surrender charges, if the policy were surrendered before the
insured's death.

[15
]

policy

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
INSURANCE

OF

LIFE

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 ones 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 41 billion US dollars.
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
LIC
ICICI Prudential
Reliance General Insurance
Bajaj Allianz

HDFC Life
Tata AIG Insurance

Kotak Life Insurance

Product
Jeevan Vaibhav
ICICI Pru iCare
Reliance Private Car Insurance
Reliance
TravelRich
Care for Students
Cash
Family Floater Health Guard Plan
Car insurance
Click2Protect
HDFC LIFE SMART WOMAN PLAN
Tata AIG Motor Insurance
Tata AIG Travel Insurance
Tata AIG Wellsurance Family
Kotak Assured Protection Plan
Kotak Assured Income Plan
[19
]

Kotak Assured Investment Plan

Aviva
Future General
MetLife
Star Union Dai-ichi Life Insurance
Shriram Life Insurance

Aviva Health Secure

Aviva i-Life
Future General Smart Life
Future General Health Suraksha
Retirement Plans
Met Monthly Income Plan
Suraksha Kavach

Bharti AXA

Shri Life
Wealth Plus
Money Back
Shriram Ujjwal Life SP
Bharti AXA Life eProtect

Aegon Religare

iTerm

IDBI Federal

IndiaFirst Life Insurance

Termsurance
Wealthsuran
ce
Childsuranc
e
Lifesurance
Healthsuran
ce
Incomesura
nce
Loansurance
Dream Smart Plan
Grow Smart
Plan Future
Smart Plan
Secure Smart
Plan
Smart
Income
Rakshak
DLF Pramerica Family
Income DLF Pramerica
Family First DLF
Pramerica
U-Protect
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
Auto Protector Policy
Individual Medishield Policy
Householder's Policy
Motor Insurance Policy

Canara HSBC OBC Life Insurance

DLF Pramerica Life Insurance

IFFCO TOKIO General Insurance

New India Assurance

[20
]

Overseas Mediclaim
Policy
Fire & Machinery
Policy Industrial All
Risk
Policy
Oriental's Motor
Insurance Policy
Happy Family Floater Scheme
Car Insurance

Oriental Insurance
National Insurance
Cholamandalam MS General
Insurance

Chola MS Private Car

Chola MS Student Travel
Chola MS Family Healthline
Travel Insurance
HDFC Ergo Health Suraksha
Householder's Insurance
Policy Shopkeeper's
Insurance Policy Motor
Insurance Policy
Individual Health
Bills
my:health
Medisure
Prime Insurance

HDFC Ergo
Universal Sompo General Insurance

L&T 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 oficially 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-ofice 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 consumers 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
Indias leading private sector financial services companies, and ranks
among the top 3 private sector financial services and banking companies,
in terms of net worth. Reliance Capital has interests in asset management
and mutual funds, stock broking, life and general insurance, proprietary
investments, private equity and other activities in financial services.
Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)
registered with the Reserve Bank of India under section 45-IA of the
Reserve Bank of India Act, 1934.
Reliance Capital sees immense potential in the rapidly growing financial
services sector in India and aims to become a dominant player in this
industry and offer fully integrated financial services.
Reliance Life Insurance is another steps forward for Reliance Capital
Limited to ofer 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.

ACHIEVEME
NTS
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 certifed ISO 9008:2001
Winner of Best Non-Urban Coverage Award at Indian Insurance
Awards 2011
RLICs 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 Equitys 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, LifeAsia 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
Centre: -

Care

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 ofice 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, efective,
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.-0651-3207112/06513207114
Office No.501 A, Panchvati Plaza,Kutchery Road, Ranchi,
Jharkhand-834001
0651-3982417/06513982418

[26
]

Benefts 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 Indias 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 Companys 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 Childs Super Invest Assure Policy and Reliance Secure Child
Policy best cope up
with your childs 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
Guardian Plan
3)

Reliance Term

Credit

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
Investment Plan

Super

Automatic

2)
Reliance Super Golden Years
Plan Plus
3)
Reliance
Guarantee Plan

Money

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
Reliance
Reliance
Reliance
Reliance
Reliance
Reliance
Reliance

Special Endowment Plan

Super Invest Assure Plus Plan
Money Guarantee Plan
Super Golden Years Plan Value
Super Automatic Investment Plan
Savings Linked Insurance Plan
Cash Flow Plan
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 for an agent to
understand the requirements of the customer well.

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 familys
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
childs future and even chalk out a sound plan for your retirement.

Plan
s:1.
2.
3.
4.
5.
6.

Protection Plans
Savings & Investment Plans
Unit linked Plans
Child Plan
Retirement Plan
Health Plan

1. Protection
Plans
In todays 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 familys future is in safe hands.

Reliance
Reliance
Reliance
Reliance
Reliance
Reliance

Life Insurance eTerm Plan

Term Plan
Simple Term Plan
Special Term Plan
Credit Guardian Plan
Special Credit Guardian Plan

2.
Savings
Investment Plans

Reliance
Reliance
Reliance
Reliance
Reliance
Reliance
Reliance
Reliance

&

Life Insurance Super Endowment Plan

Life Insurance Guaranteed Money Back Plan
Life Insurance Money Multiplier Plan
Cash Flow Plan
Endowment Plan
Super Five Plus
Whole Life Plan
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 childs 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
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

after

[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 ofers you a win-win solution with Solutions for
Groups. Not only are your employees covered for life from accidents and
disablements, you can also eficiently 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.

Plan
s:1.
2.

Employees Liability Solutions

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
employees
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 eficiently manage your employees
well-being.
So take care of your greatest assetsyour employeesby investing in
Reliance Employers
Liability
Solutions!

Reliance
Reliance
Reliance
Reliance

Life Insurance Traditional Group Superannuation Plan

Life Insurance Group Leave Encashment Plus Plan
Traditional Group Gratuity Plan
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
Life Plan: -

Whole

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 Insurances 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 daughters wedding, your childs university
education or even a new ofice 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
companys 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
Endowment Plan: -

Special

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
Flow Plan: -

Cash

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
Guardian Plan: -

Credit

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.
Feature
s: 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
Guardian Plan: -

Credit

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 benefits depend
on the performance of a portfolio of shares.
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
Return Plan: -

Market

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
Years Plan: -

Golden

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.
Feature
s: 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 its
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 market share of 7.36%.
4. SBI Life Insurance
Company Ltd
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
Company Ltd.

Insurance

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 FY200708,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 200708.
8. Max New York Life Insurance
Company Ltd.

[42
]

Max New York Life Insurance Co Ltd has reported growth of 73% in 200708. 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
Company India Ltd.

Insurance

Aviva Life Insurance Company India Ltd ranking dropped to 10th in 200708 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
insurance industry

rate

in

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
201
2.
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 AprilAugust 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 AprilOctober 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
investmen
t).

[44
]

In terms of policies sold following are the top insurers in

India:
Company
LIC
Future General Life
ICICI Prudential
Met Life
Reliance Life
Star Union Dai-ichi
Bajaj Allianz
Shriram Life
Birla Sunlife
Bharti AXA Life
SBI Life
Aegon Religare
Max New York
IDBI Federal
HDFC Standard
Canara HSBC OBC Life
Tata AIG
DLF Pramerica
Kotak Life Insurance
IndiaFirst
Aviva
Sahara Life
Edelweiss Tokio

Policies
sold
till
December
2011
(approximate figure)
20404281
100143
785938
98904
698109
82037
640483
73490
589855
69151
491927
47332
405662
45833
397408
44899
199275
43299
199614
38498
100216
36228
1968

Key fndings
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 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
Insurance
Group
Gratuity
Plans,
Group
Term
Insurance
Plans,
Unit Linked Group
Superannuation
Plan,
Employee
Deposit Linked

MetLife Insurance

Corporate
Life
Insurance

Annuity
Solutions,
Group
Gratuity
Plans,
Group
Protection
Plans,
Group
Term
Insurance Plans

Agent

No

No

No

Afiliation

Reliance

Max New York

Met
Life
India
Insurance

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

Life
Insurance
Types

SMS
Short
Code
Individual
Life
Insurance

Life
Insurance
Corporation (LIC)
-

Life
Insurance
Corporation (LIC)
54242

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

Children
Plans,
Endowment
Assurance
Plans,
Money Back Plans,
Protection
Plans,
Retirement
Pension
Plans,
Savings
And
Investment
Plans,
Term
Assurance
Plans, Unit Linked
Insurance
Plans
(ULIPS),Whole Life

[47
]

56161

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

Comparing LIC,Reliance Life Insurance,ICICI

Prudential Life
Insurance
Attributes

LIC

Corporate Life
Insurance

Group Critical
Illness
Rider, Group
Gratuity Plans,
Group Leave
Encashment Plan,
Group Mortgage
Redemption
Assurance, Group
Scheme Plans,
Group Term
No
Life Insurance
Corporation (LIC)
Life Insurance
Corporation (LIC)
Children Plans,
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,

Agent
Affliation
Types
SMS Short Code
Individual Life
Insurance

Reliance Life
Insurance
Annuity Solutions,
Group Gratuity
Plans, Group
Protection Plans,
Group Term
Insurance Plans

ICICI Prudential Life

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

No
Reliance

No
ICICI Bank

Life Insurance
Corporation (LIC)
Children Plans,
Endowment
Assurance Plans,
Health Plans,
Money Back Plans,
Protection Plans,
Retirement
Pension Plans,
Savings And
Investment Plans,
Term Assurance
Plans, Whole Life
Plans

Life Insurance
Corporation (LIC)
56767
Children 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 childrens plan (Reliance child
Plans) based on the
nearest Competitor plans (LIC komal jeevan policy). On the basis of
following features:

type

Plan

Child

Min/Max Term

Child

Min/Max Age of

Mode

Payment

assured

Life

Beneficiary

Structure

Benefit

Additions

Available

Benefit
Death
Bonus and
Riders

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. Ill 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.

Benefts 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

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
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.

LICs Komal Jeevan Plan is a childrens 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 paid and the
policy is terminated.

Key Features of Reliance Child

Plan:-

Key Features of LIC Komal Jeevan Plan:-

2.

This is a Traditional Money

Back Plan where 25% of the
Sum Assured is paid every
year in the last 4 years.
Maturity Benefit is paid
under all circumstances, even
in case of unfortunate loss of
parent.
This policy provides high sum
assured rebate
Accumulated Bonus is
payable on maturity
There are 3 riders available
in this plan- Critical Illness
Rider, Accidental Death &
Total & Permanent
Disablement Rider and

[52
]

This plan can be taken by the childs

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

Premium needs to be paid till the child

is 17 years old.
Risk starts to commence after 2 policy
years or the child is at least 7 years old,
whichever is later.
No medical examination is required
under this plan.
Loyalty or Terminal Bonus is payable
on death or maturity.

An Additional Premium Waiver Benefit

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

Family Income Benefit Rider

3.

Benefits you get from Reliance Child

Plan:

Death Benefit In case of

death of the Life Insured, i.e.
the parent, the entire Sum
Assured is paid for immediate
expenses; the future
premiums are waived and
paid by the insurer such that
the Survival Benefits are
either ways paid.
Survival Benefit Is provided
as below:

When child is 3 years of age

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

4.

Maturity Benefit On
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

Eligibility conditions and other

restrictions in Reliance Child Plan:

Sum Assured (in Rs.)- 25,000

to no limit
Policy Term (in years)- 5 to 20
Premium Payment Term (in
years)- equal to PT
Entry Age of Policyholder (in
years)-20 to 60
Age at Maturity (in years)-25
to70
Payment modes-Yearly, Halfyearly, Quarterly and

[53
]

completed year.
Benefits you get from LIC Komal Jeevan
Plan:

Death Benefit Sum Assured + Bonuses

after commencement of risk. Otherwise,
the sum of basic premiums are paid
back
Maturity Benefit Guaranteed
Additions along with Loyalty additions
is payable in a lumpsum.
Survival Benefit

When child is 18 years of age - 20% of

the Sum Assured
When child is 20 years of age - 20% of
the Sum Assured
When child is 22 years of age - 30% of
the Sum Assured
When child is 24 years of age - 30% of
the Sum Assured

Income Tax Benefit Premiums paid

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

Eligibility in LIC Komal Jeevan Plan:

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

25,00,000
Policy Term (in years)- 18 years
Childs Age at Entry
Premium Payment Term (in years)- 8 to
18
Entry Age of Policyholder (in years)-0
to 10
Age at Maturity (in years)- 26
Payment modes-Single, Yearly, Halfyearly, Quarterly, Monthly or SSS

Monthly
5

Sample illustration of premium of

Reliance Child Plan:

Sample illustration of premium amount in

LICs Komal Jeevan Plan:

Age of Policyholder = 30, 35

and 40 years
Policy Tenure = 18 years
Sum Assured= Rs.5,00,000
Guaranteed Benefits:

The illustration is for a healthy child

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

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.

7.

Additional Features and Benefits of

Reliance Child Plan:-

Additional Features and Benefits of LICs

Komal Jeevan Plan:-

There are 3 additional riders

available in this policy
a. Critical Illness Rider
b. Accidental Death & Total &
Permanent Disablement Rider and
c. Family Income Benefit Rider

There are riders available with this plan

a. Premium Waiver Benefit
b. RiderTerm Rider

What happens if?

What happens if?

You stop paying the premium

within the first 3 years The
policy will lapse if the
premium has not been paid
within the grace period and
the policy benefits stop.
You stop paying the premium
after the first 3 years If the
premium has not been paid
within the grace period, the
policy will made 'Paid up' and
the Sum Assured will be
[54
]

You want to surrender the policy

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
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

reduced proportionately.
You want to surrender the
policy If premiums for 3
years have been paid up, then
surrender of policy is allowed.
Guaranteed Surrender Value
= 30% of basic premiums
paid 1st years 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 :-

the premiums paid during the first year

and any extra premium paid plus 30%
of the premiums paid after the date of
commencement of risk.
You want a loan against your policy
Policy Loan is not available in this plan.

Other child insurance plans from Life

Insurance Corporation of India:

No more

[55
]

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

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
LIC
ICICI
SBI
Bajaj
Reliance
HDFC
Birla
Max New York
Tata
Met Life
Kotak
Others

Approximate market share

50%
10%
5%
4%
5%
6%
4%
3%
2%
1%
2%
8%

In line with expectations, life insurance industrys new business volumes

in the individual
new business segment remained strong, growing 36% Y-o-Y and 23%
M-o-M, in August
201
0.
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.

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]

Market share in 2010.

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
HDFC
Standard
Bajaj
Allianz
Tata
AIG
Birla Sun
Life
AVIV
A
OM
Kotak
Reliance
Life
SBI
Life
Met
Life
ING
Vysya

250
218
200
183
180
155
153
12
6
125
110
110

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]

DISTRIBUTION CHANNEL
Reliance Life Insurance Company Limited
distribution channel, which are as follows:

is

using

five

types

of

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
Manage
rs
Advisor
s
Custom
ers
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 ofering 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)
2)

Shubh Arambh
Reliance Advisors Reward Experience: This programs consists of
New Advisor Incentive Program
Board of Advisors Annual Discovery Series
Advisor Career Progression
RARE Club Loyalty Program

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]

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.

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]

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 efectively.
3. Concern towards customers: Serious concern must be given to
the customers as in todays 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 must be the branch offices in
each 20-30 Km. diameter.
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.

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]

Limitations
Although every efort 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.
Tim
e:
The time duration could not provide ample opportunity to study
every detail of the company.
Unawaren
ess:
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.
Are
a:
Area of study chosen was
not large.

[64
]

BIBLIOGRAPHY AND REFERENCES

www.reliancelife.com
www.indiainfoline.com
www.bimaonline.com
www.google.com
www.yahoo.com
www.wikipedia.com
www.moneycontrol.com
Marketing Management by Philip Kotler
Business Research by N.K. Malhotra

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]