ankur saxena

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APROJECT REPORT

ON SUMMER TRAINING AT

RELIANCE LIFE INSURANCE

COMPANY LTDOn topic

Creating an insurance awareness andgenerating revenue for the company

Master of Business Administration(MBA)

FinanceBy

Ankur Saxena

SIKKIM MANIPAL UNIVERSITY

Roll No. 521158448

Supervising FacultyMs. IFFAT AIJAZ SIDDIQUI
http://www.smude.edu.in/Pages/Welcome.aspx


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Faculty of Management StudiesSikkim Manipal University

Rampur

DECLARATION

I declare that the project entitled A STUDY ON A INSURANCE

COMPANY (Conducted on behalf of RELIANCE LIFE INSURANCECOMPANY LTD, RAMPUR ) under the guidance of Miss Iffat Aijaz

Siddiqui submitted in partial fulfillment of the requirement for the

award of the degree of Master of Business Administration to

SIKKIM MANIPAL UNIVERSITY is my original work carried out

during 15 April 2012 to 15 June 2012, and not submitted for the

award of any other degree, diploma, fellowship or other similar or

prize to any other institute, organization or university by any otherperson.

Place

Ankur Saxena

Date:Roll No. 521158448


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CERTIFICATE OF THE FACULTY GUIDE

This is to certify that the project entitled

Submitted in partial fulfillment of

the requirement of SIKKIM MANIPAL UNIVERSITY in record of bonofidegeneral study work carried out by

under my supervision.

The project or any part of it has not been previously submitted for any

degree.

Date:Place:

Rampur


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1 What is Insurance

Introduction

Brief history of the insurance

sector

Some of the milestones in life

insurance

Insurance sector reforms

IRDA

Existing Insurance companies

2 Introduction of Reliance Life

Insurance

Company profile

Mission

Vision & values

Build up of business

Awards

Problem Identification

3 Generating revenue for the

company

Promotion

Sales strategy

Market share

4 Service

Customer satisfaction

Insurance solutions for individuals

Stages in policy issuance

5 Human resource

Definition of agent

Procedure for becoming an agentMethods of remuneratin a ents


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Acknowledgement

In preparation of this report by me, I feel great pleasure because

it gives me extensive practical knowledge in my career. I get idea

about Indian Life Insurance Industry by this project.

I express my deep sense of gratitude to My Company Guide

Mr.Arun Kumar (BM) and Mr. Shahnawaz Khan (SSM) for his

valuable guidance during my project work. I also like to all staff of

Reliance Life Insurance who guide me in project work directly or

indirectly to complete my training project.

I am thankful to Miss Iffat Aijaz Siddiqui (Faculty Guide) for

valuable inspiration and guidance provided me throughout the course

of this project. They have patient and critically gone the subject

matter.

I would like to take opportunity to express my gratitude towards

all of them who have contributed directly or indirectly in my project

work.

At last I would like to extend my deep sense of gratitude to myfriends, colleagues and each individual who directly or indirectly helpme during the project work.

Ankur Saxena


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INTRODUCTION

Life insurance is a form of insurance that pays monetary

proceeds upon the death of the insured covered in the policy.

Essentially, a life insurance policy is a contract between the named

insured and the insurance company wherein the insurance company

agrees to pay an agreed upon sum of money to the insured's named

beneficiary so long as the insured's premiums are current.

With a large population and the untapped market area of

this population insurance happens to be a very big opportunity in

India. Today it stands as a business growing at the rate of 15-20%

annually. Together with banking services, it adds about 7 percent to

the countrys GDP. In spite of all this growth statistics of the

penetration of the insurance in the country is very poor. Nearly 80% of

Indian populations are without life insurance cover and the health

insurance. This is an indicator that growth potential for the insurance

sector is immense in India.

It was due to this immense growth that the regulations

were introduced in the insurance sector and in continuation Malhotra

Committee was constituted by the government in 1993 to examine

the various aspects of the industry. The key element of the reform

process was participation of overseas insurance companies with 26%

capital. Creating a more competitive financial system suitable for the

requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through

many changes. The liberalization of the industry the insurance industry

has never looked back and today stand as one of the most competitive

and exploring industry in India. The entry of the private players and

the increased use of the new distribution are in the limelight today.


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The use of new distribution techniques and the IT tools has increased

the scope of the industry in the longer run.

Insurance is the business of providing protection against

financial aspects of risk, such as those to property, life health and legal

liability. It is one method of a greater concept known as risk

management which is the need to mange uncertainty on account of

exposure to loss, injury, disadvantage or destruction.

The business of insurance is related to the protection of

the economic values of assets. Every asset has a value. The asset

would have been created through the efforts of the owner. The asset is

valuable to the owner, because he expects to get some benefit from it.The benefit may be an income or in some other form.

In India, insurance began in 1818 with life insurance

being transacted by an English company. The first insurance company

was the Bombay mutual assurance society ltd, formed in 1870 in

Mumbai. Insurance helps to reduce the consequences of adverse

situation. Insurance is the method of spreading and transfer of risk.

The fortunate many who are exposed to some or similar risk sharesloss of the unfortunate. Insurance does not protect the assets but only

compensates the economic or financial loss.

In insurance the insured makes payment called

premiums to an insurer, and in return is able to claim a payment

from the insurer if the insured suffers a defined type of loss. This

relationship is usually drawn up in a formal legal contract.

Insurance companies also earn investment profits,because they have the use of the premium money from the time they

receive it until the time they need it to pay claims. This money is

called the float. When the investments of float are successful they may

earn large profits, even if the insurance company pays out in claims


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every penny received as premiums. In fact, most insurance companies

pay out more money than they receive in premiums. The excess

amount that they pay to policyholders is the cost of float. An insurance

company will profit if they invest the money at a greater return than

their cost of float.

An insurance contract or policy will set out in detail the

exact circumstances under which a benefit payment will be made and

the amount of the premiums.

Marine insurance is the oldest type of insurance and one

of the earliest records of a marine policy relates to a Mediterranean

voyage in 1347. This was followed by life insurance some 300 yearslater. Fire insurance, however, did not begin until after the Great fire

of London in 1666. In India all the three insurance developed as

under:

Fire Insurance

Marin insurance

Life Insurance


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Classification of insurance:

The insurance industry in India can broadly classify in two parts.

They are.

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:-

Life insurance can be defined as life insurance provides a sum

of money if the person who is insured dies while the policy is in effect.

In 1818 British introduced to India, with the establishment of

the oriental life insurance company in Calcutta. The first Indian owned

Life Insurance Company; the Bombay mutual life assurance society

was set up in 1870. The life insurance act, 1912 was the first statuary

measure to regulate the life insurance business in India. In 1983, the

earlier legislation was consolidated and amended by the insurance act,

1938, with comprehensive provisions for detailed effective control over

insurance. The union government had opened the insurance sector for

private participation in 1999, also allowing the private

Companies to have foreign equity up to 26%. Following the

opening up of the insurance sector, 12 private sector companies have

entered the life insurance business .

Benefits of life insurance:

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.


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It provides valuable tax relief.

Thus insurance is found to be very useful in the lives of the

person both in short term and long term.Fundamental principles of life insurance contract:-

1) Principle of almost good faith:

A positive duty to voluntary disclose, accurately and fully, all

facts, material to the risk being proposed whether requested or not.

2) Principle of insurable interest:

Relationships with the subject matter (a person) which is

recognized in law and gives legal right to insure that person.

2) Non-life (general) Insurance:-Triton insurance co. ltd was the first general

insurance company to be established in India in 1850, whose shares

were mainly held by the British. The first general insurance company

to be set up by an Indian was Indian mercantile insurance co. Ltd.,

which was stabilized in 1907. There emerged many a player on the

Indian scene thereafter.

The general insurance business was nationalized after the

promulgation of General Insurance Corporation (GIC) OF India

undertook the post-nationalization general insurance business.


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Brief History of the Insurance Sector in India

The business of life insurance in India in its existing form started

in India in the year 1818 with the establishment of the Oriental Life

Insurance Company in Calcutta.

The story of insurance is probably as old as the story of

mankind. The same instinct that prompts modern businessmen today

to secure themselves against loss and disaster existed in primitive

men also. They too sought to avert the evil consequences of fire and

flood and loss of life and were willing to make some sort of sacrifice in

order to achieve security. Though the concept of insurance is largely a

development of the recent past, particularly after the industrial era

past few centuries yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in

the year 1818. Oriental Life Insurance Company started by Europeans

in Calcutta was the first life insurance company on Indian Soil. All the

insurance companies established during that period were brought up

with the purpose of looking after the needs of European community

and these companies were not insuring Indian natives. However, later

with the efforts of eminent people like Babu Muttylal Seal, the foreign

life insurance companies started insuring Indian lives. But Indian lives

were being treated as sub-standard lives and heavy extra premiums

were being charged on them. Bombay Mutual Life Assurance Society

heralded the birth of first Indian life insurance company in the year

1870, and covered Indian lives at normal rates. Starting as Indian

enterprise with highly patriotic motives, insurance companies came

into existence to carry the message of insurance and social security

through insurance to various sectors of society. Bharat Insurance

Company (1896) was also one of such companies inspired by

nationalism. The Swadeshi movement of 1905-1907 gave rise to more


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insurance companies. The United India in Madras, National Indian and

National Insurance in Calcutta and the Co-operative Assurance at

Lahore were established in 1906. In 1907, Hindustan Co-operative

Insurance Company took its birth in one of the rooms of the

Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta.

The Indian Mercantile, General Assurance and Swadeshi Life (later

Bombay Life) were some of the companies established during the

same period. Prior to 1912 India had no legislation to regulate

insurance business. In the year 1912, the Life Insurance Companies

Act, and the Provident Fund Act were passed. The Life Insurance

Companies Act 1912 made it necessary that the premium rate tables

and periodical valuations of companies should be certified by an

actuary. But the Act discriminated between foreign and Indian

companies on many accounts, putting the Indian companies at a

disadvantage.

The first two decades of the twentieth century saw lot of

growth in insurance business. From 44 companies with total business-

in-force as Rs.22.44 Crore, it rose to 176 companies with totalbusiness-in-force as Rs.298 Crore in 1938. During the mushrooming of

insurance companies many financially unsound concerns were also

floated which failed miserably. The Insurance Act 1938 was the first

legislation governing not only life insurance but also non-life insurance

to provide strict state control over insurance business. The demand for

nationalization of life insurance industry was made repeatedly in the

past but it gathered momentum in 1944 when a bill to amend the LifeInsurance Act 1938 was introduced in the Legislative Assembly.

However, it was much later on the 19th of January 1956 that life

insurance in India was nationalized. About 154 Indian insurance

companies, 16 non-Indian companies and 75 provident were operating


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in India at the time of nationalization. Nationalization was

accomplished in two stages; initially the management of the

companies was taken over by means of an Ordinance, and later, the

ownership too by means of a comprehensive bill. The Parliament of

India passed the Life Insurance Corporation Act on the 19th of June

1956, and the Life Insurance Corporation of India was created on 1st

September, 1956, with the objective of spreading life insurance much

more widely and in particular to the rural areas with a view to reach all

insurable persons in the country, providing them adequate financial

cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch

offices, apart from its corporate office in the year 1956. Since life

insurance contracts are long-term contracts and during the currency of

the policy it requires a variety of services need was felt in the later

years to expand the operations and place a branch office at each

district headquarter. Re-organization of LIC took place and large

numbers of new branch offices were opened. As a result of re-

organization servicing functions were transferred to the branches, andbranches were made accounting units. It worked wonders with the

performance of the corporation. It may be seen that from about

200.00 Crore of New Business in 1957 the corporation crossed

1000.00 Crore only in the year 1969-70, and it took another 10 years

for LIC to cross 2000.00 Crore mark of new business. But with re-

organization happening in the early eighties, by 1985-86 LIC had

already crossed 7000.00 Crore Sum Assured on new policies.Today LIC functions with 2048 fully computerized branch

offices, 100 divisional offices, 7 zonal offices and the corporate office.

LICs Wide Area Network covers 100 divisional offices and connects all

the branches through a Metro Area Network. LIC has tied up with


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some Banks and Service providers to offer on-line premium collection

facility in selected cities. LICs ECS and ATM premium payment facility

is an addition to customer convenience. Apart from on-line Kiosks and

IVRS, Info Centers have been commissioned at Mumbai, Ahmadabad,

Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many

other cities. With a vision of providing easy access to its policyholders,

LIC has launched its SATELLITE SAMPARK offices. The satellite offices

are smaller, leaner and closer to the customer. The digitalized records

of the satellite offices will facilitate anywhere servicing and many other

conveniences in the future.

From then to now, LIC has crossed many milestones and has set

unprecedented performance records in various aspects of life

insurance business. The same motives which inspired our forefathers

to bring insurance into existence in this country inspire us at LIC to

take this message of protection to light the lamps of security in as

many homes as possible and to help the people in providing security to

their families.


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Some of the important milestones in the

life insurance business in India are

1850 Non life insurance debuts with triton insurance company.

1870 Bombay mutual life assurance society is the first Indian owned

life insurer

1912 The Indian Life Assurance Companies Act enacted as the

first statute to regulate the life insurance business.

1928 The Indian Insurance Companies Act enacted to

enable the government to collect statistical information about both life

and non-life insurance businesses.

1938 Earlier legislation consolidated and amended to by the

Insurance Act with the objective of protecting the interests of the

insuring public.

1956 245 Indian and foreign insurers and provident societies

taken over by the central government and nationalized. LIC formedby an Act of Parliament, viz. LIC Act, 1956, with a capital contribution

of Rs. 5 Crore from the Government of India.

The General insurance business in India, on the other

hand, can trace its roots to the Triton Insurance Company Ltd., the

first general insurance company established in the year 1850 in

Calcutta by the British. Some of the important milestones in the

general insurance business in India are:

1907 The Indian Mercantile Insurance Ltd. set up, the first

company to transact all classes of general insurance business.


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1957 General Insurance Council, a wing of the Insurance

Association of India, frames a code of conduct for ensuring fair conduct

and sound business practices.

1968 The Insurance Act amended to regulate investments and

set minimum solvency margins and the Tariff Advisory Committee set

up.

1972 The General Insurance Business (Nationalization) Act,

1972 nationalized the general insurance business in India with effect

from 1st January 1973. 107 insurers amalgamated and grouped into

four companies viz. the National Insurance Company Ltd., the New

India Assurance Company Ltd., the Oriental Insurance Company Ltd.

and the United India Insurance Company Ltd. GIC incorporated as a

company.

Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance

Secretary and RBI Governor R. N. Malhotra, was formed to evaluate

the Indian insurance industry and recommend its future direction.

The Malhotra committee was set up with the objective

of complementing the reforms initiated in the financial sector. The

reforms were aimed at creating a more efficient and competitive

financial system suitable for the requirements of the economy keeping

in mind the structural changes currently underway and recognizing

that insurance is an important part of the overall financial system

where it was necessary to address the need for similar reforms In


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1994, the committee submitted the report and some of the key

recommendations included.

1997 Insurance regulator IRDA set up

2000 IRDA starts giving licenses to private insurers: AEGONReligare Life Insurance , ICICI prudential and HDFC Standard Life

insurance first private insurers to sell a policy

2001 Royal Sundaram Alliance first non life insurer to sell a

policy 2002 Banks allowed selling insurance plans.

The Insurance Regulatory and DevelopmentAuthority (IRDA)

The Insurance Act, 1938 had provided for setting up

of the Controller of Insurance to act as a strong and powerful

supervisory and regulatory authority for insurance. Post

nationalization, the role of Controller of Insurance diminished

considerably in significance since the Government owned the insurance

companies.

But the scenario changed with the private and

foreign companies foraying in to the insurance sector. This

necessitated the need for a strong, independent and autonomous

Insurance Regulatory Authority was felt. As the enacting of legislation

would have taken time, the then Government constituted through a

Government resolution an Interim Insurance Regulatory Authority

pending the enactment of a comprehensive legislation.

The Insurance Regulatory and Development

Authority Act, 1999 is an act to provide for the establishment of an

Authority to protect the interests of holders of insurance policies, to


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regulate, promote and ensure orderly growth of the insurance industry

and for matters connected therewith or incidental thereto and further

to amend the Insurance Act, 1938, the Life Insurance Corporation Act,

1956 and the General insurance Business (Nationalization) Act, 1972

to end the monopoly of the Life Insurance Corporation of India (for life

insurance business) and General Insurance Corporation and its

subsidiaries (for general insurance business).

The act extends to the whole of India and will

come into force on such date as the Central Government may, by

notification in the Official Gazette specify. Different dates may be

appointed for different provisions of this Act.

The Act has defined certain terms; some of the

most important ones are as follows:

Appointed day means the date on which the

Authority is established under the act. Authority means the established

under this Act.

Interim Insurance Regulatory Authority means the Insurance

Regulatory Authority set up by the Central Government throughResolution No. 17(2)/ 94-lns-V dated the 23rd January, 1996.

Words and expressions used and not defined

in this Act but defined in the Insurance Act, 1938 or the Life Insurance

Corporation Act, 1956 or the General Insurance Business

(Nationalization) Act, 1972 shall have the meanings respectively

assigned to them in those Acts

A new definition of "Indian Insurance Company"has been inserted. "Indian insurance company" means any insurer

being a company

(a) Which is formed and registered under the Companies Act, 1956

(b) in which the aggregate holdings of equity shares by a foreign


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company, either by itself or through its subsidiary companies or its

nominees, do not exceed twenty-six percent, Paid up capital in such

Indian insurance company

EXISTING INSURANCE COMPANIES

EXISTING INSURANCE COMPANIES


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INTRODUCTION ABOUT RELIANCE LIFE INSURANCE

Our Founder

Few men in history have made as dramatic a contribution to their

countrys economic fortunes as did the founder of Reliance, Shri.Dhirubhai H Ambani . Fewer still have left behind a legacy that ismore enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, theunmatched strategist, the proud patriot, the leader of men, thearchitect of Indias capital markets, the champion of shareholderinterest.

But the role Dhirubhai cherished most was perhaps that of Indiasgreatest wealth creator. In one lifetime, he built, starting from theproverbial scratch, Indias largest private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seedcapital of barely US$ 300 (around Rs 14,000). Over the next three anda half decades, he converted this fledgling enterprise into a Rs 60,000crore colossusan achievement which earned Reliance a place on theglobal Fortune 500 list, the first ever Indian private company to do so.

Dhirubhai is widely regarded as the father of Indias capital markets.In 1977, when Reliance Textile Industries Limited first went public, theIndian stock market was a place patronised by a small club of eliteinvestors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story andput their hard-earned money in the Reliance Textile IPO, promisingthem, in exchange for their trust, substantial return on their


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investments. It was to be the start of one of great stories of mutualrespect and reciprocal gain in the Indian markets.

Under Dhirubhais extraordinary vision and leadership, Reliancescripted one of the greatest growth stories in corporate history

anywhere in the world, and went on to become Indias largest privatesector enterprise.

Through out this amazing journey, Dhirubhai always kept the interestsof the ordinary shareholder uppermost in mind, in the process makingmillionaires out of many of the initial investors in the Reliance stock,and creating one of the worlds largest shareholder families.

VISION and Mission

Vision

Empowering everyone live their dreams.

Mission

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

Our Goal

Reliance Life Insurance would strive hard to achieve the 3 goalsmentioned below:

Emerge as transnational Life Insurer of global scale and standard

Create best value for Customers, Shareholders and all Stakeholders

Achieve impeccable reputation and credentials through bestbusiness practices


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s

Vision & values

Our Vision:-

Reliance Life Insurance has a deep rooted commitment to improve

the quality of life of its customers, employees and stakeholders. We

aim at improving the long term value in our relationship by continuous

innovation and improvements. We do this by our three-prong effort

which strives to Reliance Life Insurance a corporate with values.


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Increase Customer Value:Reliance Life Insurance has gone to the heart of its customer's

requirements and developed products which are unique and serve the

customer needs perfectly. We built a relationship of mutual trust andbenefit to serve the Indian customer. At Aegon Religare Life Insurance

the customer always comes first.

Cohesive Work Environment: -

We form long-term partnership with our employees by offering

them an invigorating work experience. We not only demand loyalty,

sincerity and values but also give it back in equal measures. Reliance

Life Insurance will like to offer its employees space to grow, innovate

and build a long-term career.

Work with Honor: -Reliance Life Insurance delivers everyday services in the

marketplace with the high sense of duty and commitment. Our

employees strive to build the long-term value for all those come in

contact with Reliance Life Insurance . Our consumers, distributors,

employees, shareholders and the nation have our commitment that we

will uphold the values of trust, integrity and a Sense of Honor in every

thought, act and deed in order to positively contribute to individual,

society and nation growth.


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Achievements

RLIC closed the last financial year with a New BusinessPremium of Rs 3513 Crores.

For 3 successive years, since inception, the Company has beenamongst the fastest growing Companies in the Life InsuranceIndustry achieving a growth rate of 28% in the last financialyear against a market growth of -6%. In the Individual Businesssegment, the company achieved a growth rate of 59% interms of WRP against the private industry growth of 1%.

Reliance Life has been one of the fastest gainers in market sharegrowing from 1.9% amongst private players in Mar'06 to 10.3%as of Mar'09. This has resulted in the Company growing tobecoming the 4th largest private player in just two yearsstarting at position of 11.

The Company has been the fastest company to reach the 3million policy mark and was the 3rd largest private insurer interms of Policy count in 2008-09

Reliance Life has accomplished a large distribution ramp-up inthe Industry in a short span of time by opening 1145branches in just over 2 year.

RLIC continues to be amongst the foremost Life Insurancecompanies in India to be certified ISO 9001:2000 for all theprocesses.

Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007-Certificate of Merit in the Financial Services category byCouncil for Fair Business Practices (CFBP).

The Company has also won the DL Shah Quality Council of India Commendation Award in the services category in feb2008 for its work on promoting 'self help channels forservice'


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Strategies for generating revenue for the

company

Advisory ServicesAdvisory services are the most interactive category and generallyfocus on longertermrelationships, ensuring that customer needs are satisfied withappropriateinsurance products or services. Such services are a critical componentof longtermvalue, since customer insurance needs change over time.

Information ServicesInformation services provide accurate and timely information inresponse tocustomer inquiries. Examples include requests for payment address orstatus,claims or contract status, and financial and rating information.The delivery of informational services primarily involves self-servicechannelssuch as telephony/VRU or the Web. Alternatively, some companiescontinue to

provide informational services directly or alternatively through callcenters.

Transactional ServicesTransactional services are specific requests that initiate or triggeractions orchanges, and tend to take the form of material changes to a policy,administrativechanges or fulfillment. Examples include a first notice of loss, the

addition of avehicle or coverage to an existing policy, coverage changes, addresschanges andrequests for ID cards and forms.Call centers are the traditional delivery channel for transactionalservices,although the trend in many insurance companies has been to drivetransactional


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services to lower-cost, self-service options.

Providing Good ServiceAs customer expectations continue to evolve, it is critical to move from

tactical tostrategic thinking regarding the definition of good service, and tounderstand thatdistinction from both insurer and customer perspectives. Technologycan improvethe service experience dramatically, but providing truly exceptionalservicerequires a more holistic view of service offerings.

Tactical Thinking on Good ServiceWhen service is viewed tactically rather than strategically, insurersstrive todeliver service at the lowest possible cost without negatively impactingthe customerrelationship. Service events provide customers with the desiredproduct or serviceinformation based on their specific request. If an insurer is able toimprove thecustomer relationship in the process of completing the service event, itis viewedas a nice bonus rather than a desired outcome. In sum, the tacticalthinking aboutservice from the insurers perspective is no harm, no foul, and issuccessful aslong as the relationship emerges no worse off than when the eventstarted.The customers view on good service from a tactical perspective ismuch the sameas insurers. The goal is that interaction with the insurer is easy, andthat thedesired outcome is achieved in as little time as possible and is

completed on thefirst call.Technology can improve the service process, but may not necessarilyresult in trulygood service, particularly as customer and insurer expectationscontinue to evolve.


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How Technology Can Impact a Life Insurance Typical

Note in this scenario the number of manual steps required to recordthe callinformation and log in and out of systems, and the time required toresearchinformation to resolve the call. In this scenario, the lack of informationat thefingertips of the representative requires an additional step to call thecustomer

and therefore fails to meet even the tactical goal of having the issueresolved onthe first call.

Strategic Thinking on Good ServiceThe final step in the evolution of the service model is that good servicebecomesa strategic component of the relationship between the insurer andcustomer. If done right, good service will deepen the long-term relationship to the

benefit of each party.Good service becomes strategic for an insurer when it evolves frombeingtransactional to generating revenue and profit. Each service event isintendedto increase customer loyalty and create or increase the cost to acustomer of


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switching carriers. Furthermore, the insurer not only provides specificanswersand services requested but also applies institutional knowledge andanalytics toanticipate other related client needs to cross-sell additional products

and services.Finally, insurers now have the ability to understand a customers long-term valueand profitability and can provide services accordingly. An insurer canbe certainthat it is not spending a disproportionate amount of service dollars onits leastvaluablecustomers.Customers also continue to evolve their thinking to be more strategicand lesssnow notonly expected to know the customers service history, but to be able toact onit, delivering service within the proper context. In addition, a serviceevent notonly answers the customers questions but becomes anticipatory, suchthat the

customer ends the call with completely new information or knowledge.

Strategy set up growth in hard times

In a thriving economy, many people don't often think about their long-

term investments and retirement planning.

But when economic times turn sour, they are more inclined to seek

financial advisers as they worry their nest egg won't sustain them in

an uncertain future.

While most financial planners bemoan this phenomenon, a downeconomy in Southeast Michigan is one reason why Southfield-based

Michigan Financial Cos. is flourishing.

The company is an insurance agency specializing in financial planning

and wealth management. It also has offices in Sterling Heights,

Dearborn, Birmingham and two in Ohio.


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Business plan was to grow by hiring experienced (insurance sales)

reps and add more services that would be appealing to them,'' Valenti

said. Since 2004, the company has grown from 29 to 49 reps with 55

total employees, he said.

Aside from hiring additional reps, key growth strategies included hiring

a financial planning coordinator, Bryan Mulvihill, to advise the

representatives; a vice president of marketing and operations, Kim

Stine, to promote the business; and a vice president of new business

development, Kevin Kneip, to coordinate growth strategies.

Financial planning at the company is a process that begins with an

analysis of an individual's investment portfolio and economic situation.

The analysis includes several meetings to evaluate the client's specific

financial goals and objectives, Kneip said.

Besides insurance, offers a variety of other services, including

employee benefit design, asset management, individual money

management and estate planning. About one-third of the company's

revenue comes from insurance and the remainder from asset

management services

But the growth strategy required a major capital infusion, and a

business affiliation name change.


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Marketing practice tends to be seen as a creative industry,

which includes advertising , distribution and selling . It is also concerned

with anticipating the customers' future needs and wants, which are

often discovered through market research. Seen from a systems point

of view, sales process engineering views marketing as a set of

processes that are interconnected and interdependent with other

functions, whose methods can be improved using a variety of relatively

new approaches

Marketing practice tends to be seen as a creative industry,

which includes advertising , distribution and selling . It is also concerned

with anticipating the customers' future needs and wants, which are

often discovered through market research. Seen from a systems point

of view, sales process engineering views marketing as a set of

processes that are interconnected and interdependent with other

functions, whose methods can be improved using a variety of relatively

new approaches
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PROMOTERS


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Category No.of Shares Held % of Share HoldingPromoter's Holding

Promoters

Indian Promoters 176444775 12.64

Petroleum Trust 104660154 7.50

Persons acting in Concert 475325061 34.04Sanchayita Mercantile Pvt Ltd 34259091 2.45

Reliance Enterprises Ltd 31523304 2.26

Florentine Trading Pvt Ltd 26115560 1.87

Velocity Trading Pvt Ltd 24606501 1.76Madhuban Merchandise Pvt Ltd 24350000 1.74

Ornate Traders Pvt Ltd 19567290 1.40

Amur Trading Pvt Ltd 16510300 1.18

Tresta Trading Pvt Ltd 16547904 1.19

Yangste Trading Pvt Ltd 16230869 1.16

Reliance Polyolefins Pvt Ltd 19090909 1.37

Reliance Aromatics & Petrochemicals Pvt Ltd 16029090 1.15

Reliance Energy & Project Development Pvt Ltd 16029090 1.15Reliance Chemicals Pvt Ltd 14568372 1.04

RELIANCE CAPITAL LTD. 16474028 1.18

Sub Total 651769836 46.68

Non Promoter's Holding Institutional Investors

Mutual Funds and UTI 82220341 5.89

Administrator of Specific Undertaking of UTI 55994112 4.01

Banks,Financial Institutions,Insurance Companies 85914618 6.15

Life Insurance Corporation of India 57021664 4.08

FIIS 227745432 16.31

Emerging Markets Growth Fund Inc 53810501 3.85

Janus Worldwide Fund 19263983 1.00

Sub Total 395880391 28.35

Others

Private Corporate Bodies 18132320 1.30

Indian Public 231251908 16.56

NRIs/OCBs 13491020 0.97

Any Other

GDR 85852061 6.15

Sub Total 348727309 24.97

Grand Total 1396377536 100.00


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Title Location Release Date

Reliance LifeInsurancelaunchesReliance LifeHighest NAVGuaranteeplan

Maharashtra

Feb,2010

The world istalking aboutus

Chandigarh

Jan,2010

Reliance LifeInsuranceeyes ruralmarket foray

Mumbai

Sep,2009

Govt mayhalve time bar for InsuranceIPOs

Mumbai

Sep,2009

Our focus isnow on lifeinsurance &IPO

Mumbai

Sep,2009
http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdf


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Your DTHvendor will sellInsurance, too

Mumbai

21stMar,2009

CombatingRisk inInsuranceBusiness

Mumbai

Mar,2009

Amar Ujala(Hindi)

Mumbai

Mar,2009

Dainik

Bhaskar(Hindi)

Bhopal

12thfeb,2009

DainikJagran(Hindi)

Bhopal

12thfeb,2009

RajExpress(Hindi)

Bhopal

12thfeb,2009

Patrika(Hindi)Bhopal

12thfeb,2009

Relianceinsurance toreach everyhome

Bhopal

12thfeb,2009
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SALES STRETAGY

Reliance Life Insurance has a great strategy for sales department. Company has a

three type of strategy for sales and that are as follow:

COMPANY STRETEGY:

Now company applies the project Turning Point and in this project

to decide the selection criteria for LIFE ADVISOR and life advisor is

the basic requirement for sale the policy. The selection criteria for

advisor are:

Like:-

Agent age > 30 for male LA, and >25 for female

Agent income 5 lakhs

Agent stay in city belong > 5 years


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Family back ground strong.

Minimum graduate

Either 2 years experience or post graduate refresher

EXTERNAL STRETEGY:

Reliance Life Insurance external strategy is To make

limited branches but, to perform productive so that

company to reduce the cost.

INTERNAL STRETEGY:

Reliance Life Insurance Company has internal strategy like,

Rewards & Recognisation:

SLAB NO OF POLICIES REWARDS

LEVEL 1

LEVEL 2 4

LEVEL 3 6

LEVEL 4 10

LEVEL 5 15


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LEVEL 6 20

Reliance Market Share:-

Reliance Life Insurance, a part of Reliance Capital of the Reliance AnilDhirubhai Ambani Group (ADAG), registered a record high market

share of 14.51 percent in March 2010 and a 10.5 percent growth forthe 2009-10 financial year.

The company sold the highest number of policies in fiscal 2010 amongthe private sector players and stood second in terms of sellingindividual premium WRP (weighted received premium).

'Retail focus, innovative products and strong distribution network werekey growth drivers during the year that helped us improve our marketshare and retain number one slot in terms of number of policies sold in

the private sector,' said Malay Ghosh, president of Reliance LifeInsurance.

He said the company this year would focus on smaller cities.

'We would continue to reach out to more customers, especially acrosstier-2 and tier-3 cities, in this fiscal,' Ghosh said.

The company achieved 9.8 percent growth last year.


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Grievance Redressal At Reliance Life Insurance, we believe in providing the best of servicesto our customers and channel partners. We provide easy access toinformation, products and services, as well as the means to get their

grievances redressed.Resolving your problem helps us review our processes and takenecessary steps to prevent recurrence. We aim to respond to yourcomplaint with efficiency, courtesy and fairness.

In case you are dissatisfied with any of our services, please feel free tocontact us -

Step1:

In the event the Policyholder/Complainant has anygrievance under this policy, a reference shall be made at

the following touch points of the Company-Step 1.1 24 hours contact centre: 30338181(Local call charges apply) & 1800 30008181(Toll free) Email:[email protected]

OR

Step 1.2 Contact the Customer ServiceExecutive at the nearest branch of theCompany

OR

Step 1.3 Write to Reliance Life CustomerServiceReliance Life InsuranceCompany LimitedH Bolck, 1st Floor, DhirubhaiAmbani Knowledge CityNavi Mumbai,Maharashtra 400710India

The Company will respond within ten business days fromthe date of receipt of the Policyholder/ComplainantsCommunication.

Step2:

In the event of not receiving a satisfactory responsewithin 10 business days, a further reference may bemade to our Grievance Redressal Officer [email protected] or write to theGrievance Redressal Officer at the address mentioned in
mailto:[email protected]?subject=GrievanceRedressalCShttp://www.reliancelife.com/Contactus/BranchLocator/BranchLocator.aspxmailto:[email protected]?subject=GrievanceRedressalCSmailto:[email protected]?subject=GrievanceRedressalCShttp://www.reliancelife.com/Contactus/BranchLocator/BranchLocator.aspxmailto:[email protected]?subject=GrievanceRedressalCS


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Step 1.3.The Company will respond within five business daysfrom the date of receipt of thePolicyholder/Complainants Communication.

Step3:

In the event of not receiving a satisfactory responsewithin 5 business days, a further reference may bemade to our Chief Executive Officer at [email protected] or write to the Chief Executive Officer at the address mentioned in Step 1.3.The Company will respond within two business daysfrom the date of receipt of thePolicyholder/Complainants Communication.

Step4:

After having followed Steps 1, 2 & 3, if the issuesremain unresolved; a further reference may be made tothe Insurance Ombudsman in terms of Rule 12 & 13of the Redressal of Public Grievance Rules, 1998

Power of Ombudsman

Rule 121. The insurance Ombudsman may receive and consider

i. complaints under rule 13;ii. any partial or total repudiation of claims by the

insurance companies,iii. any dispute in regard to premium paid or payable

in terms of the policy,iv. any dispute on the legal construction of the

policies insofar as such disputes relates to claims;v. delay in settlement of claims and

vi. non-issue of any insurance document to

customers after receipt of premium.

2. The Ombudsman shall act as counselor and mediatorin matters which are within his terms of reference and;if requested to do so in writing by mutual agreement bythe insured person and insurance company.
mailto:[email protected]?subject=GrievanceRedressalCSmailto:[email protected]?subject=GrievanceRedressalCSmailto:[email protected]?subject=GrievanceRedressalCSmailto:[email protected]?subject=GrievanceRedressalCS


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3. The Ombudsmans decision whether the complaint isfit and proper for being for being considered by it or not,shall be final.

Manner in which complaint is to be madeRule 131. Any person who has a grievance against an insurer,may himself or through his legal heirs make a complaintin writing to the insurance Ombudsman within whose

jurisdiction the branch or office of the insurercomplained against is located.

2. The complaint shall be in writing duly signed by thecomplainant or through his legal heirs and shall stateclearly the name and address of the complainant, thename of the branch or office of the insurer against whichthe complaint is made, the fact giving rise to complaintsupported by documents, if any, relied on by thecomplainant, the nature and extent of the loss caused tothe complainant and the relief sought from theOmbudsman.

3. No complaint to the ombudsman shall lie unless i) the complainant had before makinga complaint to the Ombudsman made

a written representation to the insurernamed in the complaint and eitherinsurer had rejected the complaint orthe complainant have not received anyreply within a period of one monthafter the concerned insurer hasreceived his representation or thecomplainant is not satisfied with thereply given to him by the insurer.ii) The complaint is made not later

than one year after the insurer hadrejected the representation or sent hisfinal reply on the representation of thecomplainant; andiii) The complaint is not on the samesubject matter, for which anyproceedings before any court orconsumer forum, or arbitrator is


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pending or were so earlier.

For any queries / issues kindly contact the customer support on 022-30338181 / 1800 300 08181 or write [email protected]

Customer Login

Customer Satisfaction

What is customer satisfaction?

Customer satisfaction refers to how satisfied customers are with the

products or services they receive from a particular agency. The level of


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satisfaction is determined not only by the quality and type of customer

experience but also by the customers expectations.

A customer may be defined as someone who:

has a direct relationship with, or is directly affected by your

agency and

Receives or relies on one or more of your agencys services or

products.

Customers in human services are commonly referred to as service

users, consumers or clients. They can be individuals or groups.

An organization with a strong customer service culture places the

customer at the centre of service design, planning and service

delivery. Customer centric organizations will:

determine the customers expectations when they plan

listen to the customer as they design

focus on the delivery of customer service activities

Value customer feedback when they measure performance.

Why is it important?

There are a number of reasons why customer satisfaction is important

in Insurance Sector:

Meeting the needs of the customer is the underlying rationale for

the existence of community service organizations. Customers have a

right to quality services that deliver outcomes.


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Organizations that strive beyond minimum standards and exceed

the expectations of their customers are likely to be leaders in their

sector.

Customers are recognized as key partners in shaping service

development and assessing quality of service delivery.

The process for measuring customer satisfaction and obtaining

feedback on organizational performance are valuable tools for quality

and continuous service improvement.

Insurance Solutions for Individuals:

Reliance Life Insurance offers a range of innovative, customer-centric

products that meet the needs of customers at every life stage. Itsproducts can be enhanced with up to 4 riders, to create a customized

solution for each policyholder.


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Protection

Helping you to grow and

protect your wealth.

Savings &

Investments

Manage today for a

better tomorrow.

Retirement

The road to retirement,

Make it easy

Child

Plan a good future for

your child.

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.

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

While we understand that nothing can compensate for the loss of alife, we intend to provide you the peace of mind. Investing in RelianceProtection Plans would mean your familys future is in safe hands.


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Child Plans:

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

The Reliance Child Plan helps you save systematically so that you cansecure your childs future needs. Be it higher education, his or her firsthome or any other requirement, you will always be there for your childwhen he or she needs you.

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

Savings Plans:


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In life, you have always given your family whatever they have wanted.

Yet, there are some promises you have to fulfil, such as taking yourfamily for a vacation, or buying that dream house.

Set aside some money to achieve these specific goals with the help of Reliance Savings & Investment Plans. The plan allows you toexperience the joys of life and provide for your familys needs.

Enjoy life without worrying about the promises you have madeweare here to fulfil them.


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Retirement Plans:

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

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

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


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Stages in Policy Issuance

1) Proposal

A Proposal Stage is the First stage before the policy is issued at COPS.

At this stage, the application form is received by COPS, but it is

pending for issuance due to further clarifications required from the

customer.

2) Login

A proposal which is complete i.e., duly filled with all necessary

documents attached to it & accepted by the Branch ops, is called a

Login

3) Reject

An Application gets rejected at the Branch Ops level due to necessary

details not filled in the form or necessary documents not submitted is

a Reject. It is then sent back to the Advisor for completion.

4) Issuance

Issuance means a policy that is issued to the Customer by Central

Ops.

5) Decline Status

When a customer refuses to take a policy post login but before

Issuance is called a Decline


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6) Cancellation

When the cheque given by the customer bounces, it amounts to

cancellation of the policy .

7) Lapse

A policy for which the Customer fails to pay subsequent premiums is a

Lapsed Policy.

8) Free look

Post issuance of the policy, the policyholder has the option to turn

down the policy within 15 days from the date of issuance. This period

of 15 days is called Free look Period.

9) Surrender

When a customer wants to discontinue with the policy.


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DEFINITION OF AN AGENT

According to section 182 of the Indian contracts act, an agent is

a person employed to do any act for another or to represent another indealing with a third person. In the insurance industry, the term

agene is ordinarily applied to a person engaged by the insurer to

procure new business. The insurance act defines an insurance agent as

one who is licensed under section 42 of that act and is paid by way of

commission or otherwise, in consideration of his soliciting or procuring

insurance business, including business relating to the continuance ,

renewal or revival of policies of insurance. He is, for all purposes, anauthorized salesman for insurance and needs a licence.

In pursuance of strengthening the human resources of the

IRDA, a comprehensive induction plan for recruiting professionals with

specialized qualifications and back ground was embarked upon. Eight

officers in the Actuary department joined the IRDA in the months of

August/September, 2007. Process of inducting more officers has alsostarted

Simultaneously.

The Authority, jointly with Andhra Pradesh Government,

handset up an Institute of Insurance and Risk Management (IIRM) at

Hyderabad in 2002. IIRM aims to serve the learning and development

needs of emerging markets in the context of their contemporary

challenges. IIRM is overseen by Board of Directors headed by

Chairman of the Authority. It continues to cater to the needs of the

industry by way of providing diversified range of courses, including

Post-Graduate Diploma in General Insurance, Life Insurance and Risk


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management. The IIRM courses are accredited by Chartered Insurance

Institute, London. The International School for Actuarial Science

(ISAS) has started functioning under the aegis of IIRM to achieve the

objectives of IRDA to enhance the availability of qualified skill

resources to the insurance industry.

Procedure for Becoming An Agent

(1) Qualifications of the applicant.

The applicant shall possess the minimum qualification of

a pass in 12 th standard or equivalent examination conducted by any

recognized Board/Institution, where the applicant resides in place with

a population of five thousand or more as per the last census, and a

pass in 10 th standard or equivalent examination from a recognized

Board/Institution if the applicant resides in any other place.

(2) Practical Training

1) The applicant shall have completed from an

approved institution, at least, one hundred hours practical training in

life or general insurance business, as the case may be, which may be

spread over three to four weeks, where such applicant is seeking

licence for the first time to act insurance agent.

Provided that applicant shall have completed from an

approved institution, at least, one hundred fifty hours practical

training in life and general insurance business, which may be spread

over six to eight weeks, where such applicant is seeking licence for the

first time to act as a composite insurance agent.


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2) Where the applicant, referred to under sub-

regulation (1), is-

A. An Associate/Fellow of the Insurance Institute of India,Mumbai;

B. An Associate/Fellow of the Insurance Chartered Accountants of

India, New Delhi;

C. An Associate/Fellow of the Insurance of Coasts and Works

Accountants of India, Calcutta;

D. An Associate/Fellow of the Insurance of company secretaries of

India, New Delhi;

E. An Associate/Fellow of the actuarial Society of India, Mumbai;

F. A Master of Business Administration of any Institution/University

recognized by any State Government or the Central

Government; or

G. Possessing any professional qualification in marketing from any

institution/University recognized by any State government or the

Central Government-

He shall have completed, at least, fifty hours practical training from an

approved institution. Provided that such applicant shall have

completed from an approved institution, at least, seventy hours

practical training in life and general insurance business, where such

applicant is seeking license for the first time to act as a composite

insurance agent.

3) An applicant, who has been granted a licence after the

commencement of these regulations, before seeking renewal of licence

to act as an insurance agent, shall have completed, at least twenty-


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five hours practical training in life or general insurance business, as

the case may be, from an approved institution.

Provided that such applicant before seeking renewal of licence to act

as a composite insurance agent shall have completed from an

approved institution, at least, fifty hours practical training in life and

general insurance Business.

(3) Examination.

The Applicant shall have passed the pre-recruitment

examination in life or general insurance business, or both, as the casemay be, conducted by the Insurance Institute of India, Mumbai, or any

other examination body.

(4) Fees payable

1) The fees payable to the authority for issue or renewal of licence

to act as insurance agent or a composite insurance agent shall be

rupees eight hundred twenty five.

2) The additional fees payable to the authority, under the

circumstances mentioned in sub-section (3) of section 42 of the act.

(5) Code of conduct

1) Every person holding a licence, shall adhere to the code of

conduct specified below:


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i. Every insurance agent shall,-

a. Identify himself and the insurance company of whom he is an

insurance agent;

b. Disclose his licence to the prospect on demand;

c. Disseminate the requisite information in respect of insurance

products offered for sale by his insurer and take into account the

needs of the prospect while recommending a specific insurance

plan;

d. Disclose the scales of commission in respect of the insurance

product offered for sale;

e. Indicate the premium to be charged by the insurer for the

insurance product offered for sale;

f. Inform promptly the prospect about the acceptance or rejection

of the proposal by the insurer;

g. Render necessary assistance to the policyholder or claimants or

beneficiaries in complying with the requirements for settlement

of claims by the insurer;

h. Advice every individual policyholder to effect nomination or

assignment or change of address or exercise of options, as the

case may be, and offer necessary assistance in this behalf,

wherever necessary;


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ii. No insurance agent shall,-

a. Solicit or procure insurance business without holding a valid

licence;

b. Induce the prospect to omit any material information in the

proposal form;

c. Induce the prospect to submit wrong information in the proposal

form or document submitted to the insurer for acceptance of the

proposal;

d. Interfere with any proposal introduced by any other insurance

agent;

e. Demand or receive a share of proceeds from the beneficiary

under an insurance contract;

f. Force a policyholder to terminate the existing policy and to effect

a new proposal from him within three years from the date of

such termination;


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g. Apply for fresh licence to act as an insurance agent, if his licence

was earlier cancelled by the designated person, and a period of

five years has not elapsed from the date of such cancellation;

h. Every insurance agent shall, with a view to conserve the

insurance business already procured through him, make every

attempt to ensure remittance of the premiums by the

policyholders within the stipulated time, by giving notice to the

policyholder orally and in writing;

(6)Cancellation of licence

The designated person may cancel a licence of an

insurance agent, if the insurance agent suffers, at any time during the

currency of the licence, from any of the disqualifications mentioned in

sub-section (4) of section 42 of the act, and recover from him the

licence and the identify card issued earlier.

(7) Issue of duplicate licenceThe authority may issue a duplicate licence replace a

licence lost, destroyed, or mutilated on payment a fee of rupees fifty.

(8) Non-application to existing insurance agents

Nothing contained in regulations 4 to 6 of these

regulations shall apply to the existing agents before the

commencement of these regulations.

(9) Repeal and savings

From the date of coming into force of the insurance

regulatory and development authority (licensing of corporation agents)


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regulations 2002, the insurance regulatory and development authority

(licensing of insurance agents) regulations 2000 or any part thereof

applying to corporate agents shall cease to have any effect, except as

respects things done or omitted to be done there under.

Methods of Remunerating Agents

1. A life insurance agent works on commission basis. He is paid a

percentage of the premium collected through his agency. Section

40a(1) of the insurance act stipulates that the maximum amount

which can be paid to a life insurance agent, by way of commission or

remuneration in any form, shall be 25% of the first years

premium,3 1/2 % of the second and third years renewal premium and

3% of subsequent renewal premium.

2. The insurance act provides, in section 44, for payment of

commission on renewal premium even after termination of the agency.

The commission will be limited to a rate not exceeding 4%. To be

eligible for this, the agent should have been an agent with that insurer

for at least (1) five years and policies are in force one year before

termination of agency or (2) 10 years. This commission will be payable

to the heirs of the agent after the agents death. This is a unique

facility which few other professions enjoy.

FUNCTION OF AN AGENT


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1. The agents main function is to solicit and procure life insurance

business for the insurer, which has appointed him for that purpose. At

the same time, he is trusted by the prospect to advice him suitably,

keeping his circumstances and needs in mind. He is thus, in the unique

roll of a person trusted by both parties to the transaction. His would

require him to

Understand the prospects needs and persuade him to buy a plan

of life insurance that suits his interests best

Complete the formalities ( paper work, medical examination )

necessary to get the policy expeditiously

Keep in touch to ensure that changing circumstances are

reflected in the arrangement relating to premium payments,

nomination and other necessary alterations

Facilities quick settlement of claims

Be totally honest with both the prospect and the insurer.

2. The regulation framed by the IRDA lays down a code of conduct

which incorporates some of these concepts. The code says interalia

that the agent shall

Identify himself and the insurance company of which he is an

agent

Disclose the licence to the prospect on demand


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Explain all available options to the prospect

Recommend a suitable plan taking into account the needs of the

prospect

Explain the nature and importance of the information required in

the proposal form

Inform the insurer about any material facts, including habits,

that could adversely affect the underwriting decision

Not to induce prospects to submit wrong information

RESPONSIBILITIES OF AN AGENT:

1. An agent, individual or corporate, is the main component of thedistribution channel for the life insurance business. He would be

required to solicit and procure new life and insurance business, in a

manner that is consistent with the interests of the policyholders of the

insurance company. For this purpose, for this purpose, he would have

to do the following.

Contact prospects for life insurance, study their needs and

persuade them to buy.

Complete all related formalities, including filling up proposal

forms, collecting premium, arranging medical examination, collecting


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proofs (of age or income), reports and other information required by

the underwriter.

2. After having sold a new insurance policy, the agent has to

ensure that the policy continues, without a lapse, till it becomes a

claim. The conservation of the policy is in the interests of all the three

persons concerned, the insurer, the policyholder and the agent. For

this purpose, he has to

Keep in touch with the policyholder to make sure that renewal

premiums are paid in time.

Ensure that nomination are made or changed according to

changing circumstances

Assist in settlement of the claim, by helping the claimants to

complete the necessary formalities and requirements.

3. In order that he may perform all these tasks well, the agent has

to be familiar with

The benefits under the various plans of insurance offered by his

insurer.

The office procedures for various matters including the forms

and documents. The main documents have been listed out in an earlier


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chapter. The forms and procedures will vary between one insurer and

another.

Ethical Behavior

1. Some characteristics of good ethical behaviors are

Placing the best interests of the client above ones own direct or

indirect benefits

Holding in the strictest confidence and considering as privileged,

all business and personal information pertaining to the clients affairs

Making full and adequate disclosure of all facts to enable clients

make informed decisions

2. There could be a likelihood of ethics being compromised in the

following situations

Having to choose between two plans, one giving much less

commission than the other

Temptation to recommend discontinuance of an existing policy

and taking out a new one

Becoming aware of circumstances that, if known to the insurer,

could adversely affect the interests of the client or the beneficiaries of

the claim.


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EMPLOYEE WELFARE:

MeritocracyWe ensure that good performance is always recognized andcommensurately rewarded. At Reliance Life Insurance , the sky isthe limit for the hard-working and the result-oriented.

Great work environmentReliance Life Insurance has a cheerful, warm and friendly workenvironment with a lot of professional freedom and encouragement forcreativity and innovation.

Learning and growthWe constantly create new learning opportunities for our people by wayof organizing interesting seminars, workshops and training programson a regular basis. Besides, we put people in various departments tohelp them develop crossfunctional abilities and a more wellrounded

professional experience for better career growth.

DiversityPeople from different cultures, backgrounds and walks of life makeReliance Life Insurance a multi-coloured kaleidoscope with a lot of zing. We gain multi-fold from this diversified experience.


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Fun at workLife at Reliance Life Insurance is extremely enjoyable. Thats workis interspersed with fun at regular intervalsparties, communityevents and other fun activities are part of life at Reliance LifeInsurance .Come and be a part of the exciting world of Reliance Life Insurance.View our Current Openings

sEqual Employment Opportunity PolicyReliance Life Insurances policy is that applicants are considered foremployment solely on the basis of their qualifications andcompetencies. Our hiring policy is geared to ensure that we hireemployee's without regard to their race, color, religion, national origin,citizenship, age, sex, marital status, ancestry, physical or mentaldisability, medical condition, veteran status or sexual orientation.

ONLINE SYSTEM FOR EMPLOYEES.

Reliance Life Insurance provides the best service compare to

the others company Aegon Religare Life Insurance provides the

services like:

Online salary ship

Loan

Mediclaim

Taxation
http://www.aegonreligare.com/career_current.phphttp://www.aegonreligare.com/career_current.php


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Most important thing is that company provide loan

employee when they are in trouble. They give a loan of basic amount

multiply with 6 times of basic. And loan amount fulfill all payment in

20 month at the 8% rate p.a.

STRENGTHS:


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I. Financial Acumen - Holds a stable and diversified portfolio and

has received some of the highest ratings in financial strength

from industrys independent rating agencies.

II. Disciplined fund management - Years of experience in asset

management, and a strong track record in managing funds -

backed by the acclaimed expertise of Old Mutual plc

III. Innovativeness - Known for being an innovator in providing

world-class pragmatic financial solutions, with a constant focus

on customization and flexibility

IV. Unrelenting Customer Focus - A highly committed sales force,

with customer satisfaction as the key driving force - a major

differentiator

V. Transparency in Services - Daily declaration of fund

performances, regular performance benchmarking, well

regulated asset management, and monthly newsletter on market

updates

WEAKNESSES:

Industry in nascent stage.

Rural areas still not covered.

Not very known among Indian population.

Lack of credibility among the people because Reliance Life

Insurance being a private player.

Premiums are high as compared to its competitors.

Very few branches in the country.

Products:

The policy doesnt have the surrender option before third

year.


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Plan does not offer any guarantee or assured return.

Product profile is not very comprehensive.

Mortality, management and administrative charges are sky

scrapping as compared to its competitors.

OPPORTUNITIES:

Liberalization of Indian economy.

As the industry is growing the whole market is virgin.

The whole private sector is opened to be trapped even though

the competition is fierce from government owned insurance

companies.

Its a volume business that is even if the company has few good

corporate the turnover cease to increase by manifold.

Products:

Preserver funds look good due to comfortable liquidity in

the economy and there is little chance hike in short-term

rate by RBI.

Finance minister unveiled a budget favoring consumer

spending, boosting demand and therefore higher economic

growth.


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THREATS

The government players will become aggressive thus growth is

going to be tough.

Entry of other players is not ruled out.

Apprehension towards Reliance Life Insurance being a private

life insurance company.

We expect the industry to rationalize in future that is mergers

and acquisitions will happen, which will impact the industry and

Reliance Life Insurance life fortunes.

Products:

Past performance of these plans is not indicative of the

future performance of the plan.

The sum invested in the funds is subject to market risks

and there can be no assurance that the objective of plan

will be achieved.

All benefits payable under the policy are subject to tax

laws and other financial enactment, as they exist from

time to time.

s


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Problem Identification:The basic step of any research is to find out the problem of the

company, the problem may be inside in the company or outside of the

company. Well Defined problem is half solved. The researcher has

defined the problem of the organization which is converted in to the

study topic.

To study the organizational activities of all the

department with the help of secondary as well as primary

data collection method

Objective:The main of the present study of is accomplish the following

objective.

Proper understanding and analysis of life insurance

industry.

To know about brand awareness of Reliance Life

Insurance and customers preference about Reliance

Life Insurance .

Conduct market survey on a sample selected from the

entire population and derived opinion on that research.

According the market survey come know about how much

potential of insurance market in our city.

And base on analysis of the result thus obtained make a

report on that research.

Training aims at recruiting maximum number of Life

Advisors and to Sell the maximum policies for the company


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and bring the business for the company which ever is

going at the particular point of time.

Along with it I will be gaining the thorough knowledge of

insurance sector. This will give me in more confidence in

marketing products given to me.

As the Reliance Life Insurance well reputed company in

India its great chance for me to observed different

products launch by other competitor companies like ICICI

prudential, Bajaj alliance ,LIC, Max New York life etc. In

all, it is to understand the overall working of the Lifeinsurance sector.

The objective behind the project is as follows:

To find the right candidate.

To about their family background, occupation, social

relation, Qualification, Age.

Finalize candidates for the IRDA training

Limitation:

Some of the difficulties and limitations faced by me during my

training are as follows:

Lack of awareness among the people This is the

biggest limitation found in this sector. Most of the people are not

aware about the importance and the necessity of the insurance


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in their life. They are not aware how useful life insurance can be

for their family members if something happens to them.

Perception of the people towards Insurance

sector People still consider insurance just as a Tax saving

device. So today also there is always a rush to buy an Insurance

Policy only at the end of the financial year like January, February

and March making the other 9 months dry for this business.

Insurance does not give good returns Still today

people think that Insurance does not give good returns. They are

not aware of the modern Unit Linked Insurance Plans which are

offered by most of the Private sector players. They are still under

the perception that if they take Insura