part a jyothi

8/2/2019 Part a Jyothi

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CHAPTER: 1

INDUSTRY PROFILE

INTRODUCTION

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972,

Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts.

With such 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 per cent annually. Together with banking services, it adds about 7 per cent to

the countrys GDP .In spite of all this growth the statistics of the penetration of the insurancein 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 MalhotraCommitteewas

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 efficient and 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 sea changes .The competition LIC

started facing from these companies were threatening to the existence of LIC. since the

liberalization of the industry the insurance industry has never looked back and today stand as

the 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. The use of

new distribution techniques and the IT tools has increased the scope of the industry in the

longer run.

HISTORY OF INSURANCE SECTOR

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. Some of the

important milestones in the life insurance business in India are given in the table 1. 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


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in Calcutta by the British. Some of the important milestones in the general insurance business

in India are given in the table 2.

(Table 1: milestones in the life insurance business in India)

Year Milestones in the life insurance business in India1912 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 centralgovernment and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,

1956, with a capital contribution of Rs.5 Crore from the Government of India.

(Table 2: milestones in the general insurance business in India)

Year Milestones in the general insurance business in India

1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact all

classes of general insurance business

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.

Indian Insurance MarketHistory

Insurance has a long history in India. Life Insurance in its current form was introduced in1818 when Oriental Life Insurance Company began its operations in India. General Insurance


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was however a comparatively late entrant in 1850 when Triton Insurance company set up its

base in Kolkata. History of Insurance in India can be broadly bifurcated into three eras: a) Pre

Nationalization b) Nationalization and c) Post Nationalization. Life Insurance was the first to

be nationalized in 1956. Life Insurance Corporation of India was formed by consolidating the

operations of various insurance companies. General Insurance followed suit and was

nationalized in 1973. General Insurance Corporation of India was set up as the controlling

body with New India, United India, National and Oriental as its subsidiaries. The process of

opening up the insurance sector was initiated against the background of Economic Reform

process which commenced from 1991. For this purpose Malhotra Committee was formed

during this year who submitted their report in 1994 and Insurance Regulatory Development

Act (IRDA) was passed in 1999. Resultantly Indian Insurance was opened for private

companies and Private Insurance Company effectively started operations from 2001.

Insurance Market- Present:

The insurance sector was opened up for private participation four years ago. For years now,

the private players are active in the liberalized environment. The insurance market have

witnessed dynamic changes which includes presence of a fairly large number of insurers both

life and non-life segment. Most of the private insurance companies have formed joint venture

partnering well recognized foreign players across the globe.

There are now 29 insurance companies operating in the Indian market 14 private life

insurers, nine private non-life insurers and six public sector companies. With many more

joint ventures in the offing, the insurance industry in India today stands at a crossroads as

competition intensifies and companies prepare survival strategies in a de tariffed scenario.

There is pressure from both within the country and outside on the Government to increase theforeign direct investment (FDI) limit from the current 26% to 49%, which would help JV

partners to bring in funds for expansion.

There are opportunities in the pensions sector where regulations are being framed. Less than

10 % of Indians above the age of 60 receive pensions. The IRDA has issued the first license

for a standalone health company in the country as many more players wait to enter. The

health insurance sector has tremendous growth potential, and as it matures and new players

enter, product innovation and enhancement will increase. The deepening of the health


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database over time will also allow players to develop and price products for larger segments

of society.

Intense Competition: In a de-tariffed environment, competition will manifest itself in prices,

products, underwriting criteria, innovative sales methods and creditworthiness. Insurance

companies will vie with each other to capture market share through better pricing and client

segmentation.

The battle has so far been fought in the big urban cities, but in the next few years, increased

competition will drive insurers to rural and semi-urban markets.

Global Standards: While the world is eyeing India for growth and expansion, Indian

companies are becoming increasingly world class. Take the case of LIC, which has set its

sight on becoming a major global player following a Rs280-crore investment from the Indian

government. The company now operates in Mauritius, Fiji, the UK, Sri Lanka, Nepal, Africa

and Asia-Pacific and will soon start operations in Saudi Arabia.

However, with robust reinsurance programme in place, insurers have successfully managed

to tide over the crisis without any adverse impact on their balance sheets.

With life insurance premiums being 5% of GDP and general insurance premiums being 2.5%

of GDP, the opportunities in the Indian market place is immense. The next five years will be

challenging but those that can build scale and market share will survive and prosper.

MARKET SHARE OF INDIAN INSURANCE INDUSTRY

The introduction of private players in the industry has added value to the industry. The

initiatives taken by the private players are very competitive and have given immense

competition to the on time monopoly of the market LIC. Since the advent of the private

players in the market the industry has seen new and innovative steps taken by the players in

this sector. The new players have improved the service quality of the insurance. As a result

LIC down the years have seen the declining phase in its career. The market share was

distributed among the private players. Though LIC still holds the 50% of the insurance sector

but the upcoming natures of these private players are enough to give more competition to LIC

in the near future. LIC market share has decreased from 95% (2002-03) to 81 %( 2004-05).


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TABLE NO: 4NAME OF THE LIFE INSURANCE COMPANY AND THE SHARE

HOLDING PATTERN

Name of the company Share holding

Life insurance corporation of India 50%

ICICI Prudential Life Insurance Co., 10%

HDFC 6%

Bajaj Allianz 5%

SBI Life insurance 5%

Reliance life insurance co.,. 4%

Birla sun life insurance 4%

Max New York Life Insurance Co. 3%

TATA- AIG Life Insurance Company 2%

Om Kotak Mahindra Life Insurance 2%

Met 1%

Others 8%

Graphical representation

LIC, 50%

ICICI, 10%

HDFC,6%

Bajaj allianz, 5%

SBI Life, 5%

reliance life, 4%

Birla, 4%

max, 3%

TATA AIgG2%

kota2%

Others

9%LIC

ICICI

HDFC

Bajaj allianz

SBI Life

reliance life

Birla

max

TATA AIG

kotak

Others


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CHAPTER: 2

COMPANY PROFILE

BACKGROUND AND INCEPTION OF THE COMPANY:

Inception:

Reliance Life Insurance Company was established in 2001. It is a private insurance company;

subsidiary of Reliance Capital Ltd. Reliance Life Insurance is based in Mumbai and only the

second company among private insurers to have 9001:2000 ISO certifications.

Background of the Company:

Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of RelianceAnil 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 offer need based Life Insurance solutions to individuals and Corporate.

NATURE OF THE BUSINESS CARRIED

Reliance Life Insurance as the name suggests is into the Insurance sector. Reliance Life

Insurance Company Limited engages in life insurance business in India. The company offers

unit linked insurance plans, child plan, pension plans; term plans, including simple term,

special term plan, credit guardian, whole life plan. And money back products, endowment

plans.


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VISION, MISSION AND QUALITY POLICY:

Vision

Empowering everyone lives their dreams.

Mission

Create unmatched value for everyone through dependable, effective, transparent and

profitable life insurance and pension plans.

Quality Policy:

Reliance is committed to meeting customer requirements through continual improvement of

its quality management systems. Reliance shall sustain organizational excellence through

visionary leadership and innovative efforts.

PRODUCT OR SERVECE PROFILE

Life Insurance Plans from Reliance Life Insurance

Traditional Plans

1. Reliance Term Plan

2. Reliance Simple Term Plan

3. Reliance Special Term Plan

4. Reliance Credit Guardian Plan

5. Reliance Special Credit Guardian Plan

6. Reliance Whole Life Plan

7. Reliance Life Money Multiplier Plan

8. Reliance Endowment Plan9. Reliance Super Five Plus

10.Reliance child plan

11.Reliance Cash Flow Plan

12.Reliance guarantee money back plan

Unit Linked Insurance Plans

1. Reliance Life Insurance Classic Plan2. Reliance Life Classic Plan - Limited Premium
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3. Reliance pay five plan

4. Reliance Life Classic Plan-II

Traditional Plans

1. Reliance Term PlanReliance Term Protection Plan is an insurance product from Reliance Life Insurance

that has been planned specifically to offer complete and low-cost insurance

coverage for a limited time period. In this policy the insured are offered with plenty

of options so as to meet the needs and requirement of the people.

SALIENT FEATURES OF RELIANCE TERM PLAN

In this policy the insured are eligible to get higher insurance coverage at a very

reasonable price. There are plenty of options regarding the payment of premiums as

well. Here the options that are offered under this policy are monthly, yearly, quarterly

and half-yearly. So the insured can choose the one that suits him or her then best.

Riders are also available in this policy and that can be availed by making a small

additional payment. The rider that is available here as an option is for Accidental and

Disablement. This rider is meant to offer improve insurance cover to the insured.

The insurance policy is very reasonable and for this reason this policy has been voted

as one of the best economical policies in the country. This policy also offers

protection against all types of financial liabilities such as outstanding loans and loss of

income.

If the insured is a woman, then the person is eligible for getting return or discounts on

the insurance premiums that are to be paid for keeping the policy in a healthy

condition.

This policy is also good for the owner of small and medium businesses and with the

help of this policy the employer can offer insurance coverage to its employees.

2. Reliance Simple Term PlanThis is yet another insurance plan from reliance insurance that has been planned to offer

insurance cover for a specific period of time. This plan helps an inured to secure its future

correctly and that too in an affordable way. In order to meet the security needs or demands of

the people the plan offers plenty of options.
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The maximum term of this policy has been fixed to 3 years in which the insured require to

pay only rupees hundred per year as insurance premium. According to this policy the

recipient would be getting ten thousand rupees due to unfortunate death of the policy holder

during the term of the insurance policy.

ELIGIBILITY FOR SIMPLE TERM PLAN

Minimum age entry 18 years

Maximum age entry 44 years

Maximum age at maturity 47 years

In this policy the premium payment mode is yearly and if the payment has not been made

during the prescribed time period then the policy would not stay in force. The customer can

return the policy to the company within 15 days of the receipt of cancellation. The insured

must also mention the reason for returning the policy. The premium that has been paid by the

policy holder would be refunded after making a deduction of certain amount.

EXCLUSIONS

Like all other insurance policies, this one to has certain exclusions under which the insured is

unable to make any claim. In case of suicide the insurance company is not responsible to

make any payment to the insured. If the suicide has been committed within 12 months from

the date of policy issue then no claim shall be made under such circumstances.

3. Reliance Special Term PlanThis is one such insurance plan from reliance life insurance that has been planned to offer

inclusive life insurance cover at a very reasonable price for a specific time period. This is onesuch plan that helps the insured to stay ahead of all uncertainties. In this policy all the

premium that has been paid by the insured are returned by the insurance company after its

maturity.

SALIENT FEATURES OF SPECIAL TERM PLAN

In this policy the insured would be getting higher insurance cover and that too at very

reasonable cost.


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In this policy the basic premiums that has been paid to keep the policy in force is

repaid bask to the insured after its maturity.

The insured is also presented with the choice of making any single or regular

premium.

Female policy holders are eligible of getting discounts on the rate of premiums.

The insured can also add provision on to their existing policy after making an extra

premium payment. The riders that are available under this policy are critical illness

rider and accidental death rider.

EXCLUSIONS

The insured cannot make any claim if he or she tries to cause hurt to themintentionally.

If the insured participates in any illegal or criminal act then they are not allowed to

make a policy claim.

If the insured is under the control of alcohol or drugs, then they are also not allowed

to make any claim in this policy.

People who are helping the police or armed forces then they too are excluded from

this policy.

Loss of life incurred due to war or any acts of terrorism are also excluded from this

policy.

4. Reliance Credit Guardian PlanReliance Credit Guardian Plan ensures that your housing loans, personal loans or even

outstanding credit card bills are paid in the event of ill-timed downfall. Thus keeping you and

your family protected from the burden and the worry of debt in such a situation.

SALIENT FEATURES OF CREDIT GUARDIAN PLAN

Different types of loans are covered under this Policy - Housing Loans, Personal

Loan, outstanding on credit cards etc.

Limited premium paying term

Single & Regular Premium payment option

Discount on premium rates for women


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Decreasing term insurance

5. Reliance Special Credit Guardian PlanReliance Special Credit Guardian Plan helps you and your family avoids such situations

by securing your housing loans, personal loans and even credit card payments. What makes

the Plan special is the fact that on survival at maturity, all premiums paid for your basic

Policy will be returned to you.

SALIENT FEATURES OF SPECIAL CREDIT GUARDIAN PLAN

Different types of loans are covered under this plan - Housing Loan, Personal Loan,

outstanding on credit cards etc.

Limited premium paying term

Single & Regular Premium payment option

Discount on premium rates for women

Decreasing term insurance

Option to add two Riders - Critical Illness and Accidental Death Benefit and Total

and Permanent Disablement Rider

6. Reliance Whole Life PlanThe endowment plans of Reliance Life protect the insured for an assured period even after

receiving the lump sum. Generally an individual needs to fulfill the desires and wishes of the

family. But still something remains to be done. To fulfill those dreams some money should

be kept aside with the help of Reliance Savings and Investment plans. These plans allow

experiencing the joys and providing the need of the family. An individual always loves his or

her family. The person will always try to guarantee that his or her family lives happily even

after his or her death. The Reliance Whole Life Plan: Savings and Investment Plan assures

that the family will receive the financial bear during the time of need. It makes a person

tension free and free from the doubts of the security of the family. Thus it helps in living a

peaceful future.

SALIENT FEATURES OF WHOLE LIFE PLAN

This policy gives insurance coverage till the age of 85.


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The customer under this policy also gets the option of extending the insurance

coverage till the age of 99.

The Reliance Whole Life Plan: Savings and Investment Plan has suitable premium

payment term.

Wealth making through addition of bonuses is also available under this policy.

The Reliance Whole Life Plan: Savings and Investment Plan gives more value for the

money of the customer by the way of High Sum Assured repayment and receiving

sum assured along with bonus in case of unfortunate death.

Option to add two riders Critical Illness and Accidental Death Benefit and Total and

Permanent Disablement Rider is also available under this policy.

This plan gives the policy loan offered after 3 years of premium payment.

7. Reliance Life Insurance Money Multiplier PlanReliance Life Insurance Money Multiplier Plan is a non linked non- participating endowment

plan. This plan not only provides protection to your family in your absence, but also creates

wealth for the ever rising financial support required. This flexible plan combines the security

of long-term insurance protection with the growth potential through an increasing Guaranteed

Loyalty Additions every year during the policy term and a Guaranteed Maturity Addition at

the end of the policy term.

SALIENT FEATURES OF MONEY MULTIPLIER PLAN

Double life cover - This insurance policy offers you a life cover of twice the basic

sum assured.

Increasing life cover every year - Life covers which increases with time, through

Guaranteed Loyalty Additions. Triple survival benefits (on Maturity):

o Basic sum assured.

o Accrued Guaranteed Loyalty Additions.

o Guaranteed Maturity Addition.

Longer the commitment, higher the benefits - through an increasing Guaranteed

Loyalty Additions every year and Guaranteed Maturity Additions with policy term.

A host of optional rider benefits to enhance protection cover.


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8. Reliance Endowment PlanReliance Endowment Plan is a simple Endowment Plan from which is a non unit-linked

insurance traditional plan with Bonus facility. In this policy, the premium is paid till the end

of the Policy Tenure. If the Life Insured survives till the end of the Policy Term, then he

would receive the Sum Assured along with accrued Bonus. However, if the Life Insured dies

within the policy tenure, then the nominee would receive the full Sum Assured along with

accrued Bonus.

Key Features of Reliance Endowment Plan

This is a simple Endowment Plan with both Death and Maturity Benefit.

Sum Assured along with accrued bonuses is paid on Maturity or on earlier Death. This plan has 4 additional riders and 1 in-built rider.

There is Large Sum Assured Rebate in this policy.

Benefits from Reliance Endowment Plan

Death BenefitIn case of death of the Life Insured, the nominee receives the Sum Assured

+ accrued Bonus

Maturity BenefitAt the maturity of the policy, the insured will get the Sum Assured +

accrued Bonus

Income Tax BenefitPremiums paid under life insurance policy are exempted from tax

under Section 80 C and the amount for Critical Illness rider is deducted under Section 80D.

The maturity proceeds are exempted from tax under Section 10 (10D)

9. Reliance Super Five PlusReliance Super Five Plus is the key to all your financial needs. You get a preferred lump

sum after a specified period. However, your life insurance protection continues for an

extended period. If anything were to happen to you, your beneficiary will get another Sum

Assured along with the bonuses. The Policy comes with an added feature of a limited

Premium Term, which is always five years less than the Policy Term.

SALIENT FEATURES OF SUPER FIVE PLUS

Twin Benefit of protection and savings


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Sum Assured is paid on survival, at the end of the Premium Paying Term

Life Cover for full Sum Assured continues beyond Premium Paying Term

Extended Life Cover for five years after Premium Paying Term

Wealth creation through bonus additions

More value for your money by way of High Sum Assured Rebate

Choose to add the Benefit of two Riders - Reliance Accidental Death & Total &

Permanent Disablement Rider and Reliance Critical Condition Riders

Choose to avail of a Policy Loan available after three full years of premium payment

Policy participates in profits even after Premium Paying Term

10. Reliance Child PlanThe Reliance Life Insurance group has brought the newReliance Child Plan: Child Plan a

brilliant future of children. Every parent wishes to give their kids the best in life. This plan

sum promises the same. This plan helps to save methodically so that the child can get the

financial security in the future. This plan gives the kids a wonderful and soft future.

SALIENT FEATURES OF RELIANCE CHILD PLAN

During the term of policy this plan gives a risk protection for the insured person.

At the end of the policy term the policy holder will get accumulated bonus.

Under this policy every year 25% of the sum assured is payable as lump sum benefit

during the last four anniversaries of the policy.

Under the Reliance Child Plan: Child Plan all view premiums which are waived in the

event of unfortunate loss of life of the policy holder.

The fixed benefits are continuous with guarantee even after the loss of the life of the

policy holder. The Reliance Child Plan: Child Plan gives more value for the money by the way of

high sum assured rebate.

Under this policy the customer can make a choice to add the Benefit of two Riders.

The two riders are Critical Illness and Accidental Death Benefit and Total and

Permanent Disablement Rider.

The policy continues to participate in profit even after the unfortunate death of the

policy holder


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11.Reliance Cash Flow PlanMost of the Insurance Plans block the money of the investor for a certain period of time.

But Reliance Cash Flow Plan: Savings and Investment Plan gives the double benefit of easy

liquidity through lump sum cash along with life insurance. During the time of need this

policy provides the money at times. This policy gives the freedom to the insured to live to the

full at present and at the same time assures the safety of the future by giving the flexibility of

being paid a specific percentage of the Sum Assured at particular intervals.

SALIENT FEATURES OF RELIANCE CASH FLOW PLAN

This Reliance Life Insurance policy gives easy liquidity of periodic cash flow at the

end of the 4th year and thereafter at the end of every 3 years.

The Reliance Cash Flow Plan: Savings and Investment Plan gives the capability of

wealth creation through bonus additions.

On maturity of Reliance Cash Flow Plan: Savings and Investment Plan the policy

holder will receive accumulated bonuses along with final lump sum payout.

This Insurance policy brings more value of money for high sum assured rebate.

In case if there is any unfortunate death the Reliance Cash Flow Plan: Savings and

Investment Plan gives final sum assured with the bonus. This is in overkill of and on

top of the Survival Benefits already paid.

This policy also gives the option to add two Riders - Critical Illness Rider &

Accidental Death Benefit and Total and Permanent Disablement Rider.

12.Reliance guarantee money back planUnit linked insurance plan

1. Reliance Life Classic Plan:-This is a Nontraditional Plan without Bonus Facility. In this plan, premium is paid till the end

of the policy term. There are 8 funds in which the Policyholder may choose to invest his

money such that he gets returns according to his risk appetite. In this plan, the Life Insured

will receive the entire Fund Value on the Policy maturity. However, if the Life Insured dies

within the policy tenure, the nominee would receive Double Death Benefit, i.e. the Sum


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Assured + the Fund Value as Death Benefit. This is paid to combat the immediate expenses

on the premature death of the Life Insured and then the policy terminates.

Key Features of Reliance Life Classic Plan

This is a simple Unit Linked Insurance Plan

In this plan, there is double Death Benefit of Sum Assured + Fund Value on death of

Life Insured

Fund Value is paid at the end of the Plan as Maturity Benefit.

There is an inbuilt Accidental Death Benefit rider along with 3 additional riders that

are available

There is a facility of Systematic Transfer Plan where you can systematically invest

into any of the chosen funds.

There is a wide option for investment in 8 Funds

This plan has an option of Exchange Option where you may choose to move to any

plan launched in the future.

Benefits from Reliance Life Classic Plan

Death BenefitIn case of death of the policy holder, the nominee gets Sum Assured

+ Fund Value.

However, if the death of the policy holder is caused due to accident, then Sum

Assured + Fund Value + Accidental Sum Assured is paid to the nominee as Death

Benefit.

Maturity BenefitOn maturity, the Fund Value is paid to the policyholder.

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

2. Reliance Life Classic Plan- Limited PremiumReliance Life Classic Plan- Limited Premium is a Limited Premium Unit Linked

Insurance Plan (ULIP). This is a Non-Traditional Plan without Bonus Facility.

In this plan, premium is paid till the end of the Premium Paying Term as chosen by

you at the policy inception. Then the policy continues for another 5 years till the end

of the Policy Term when it matures. There are 8 funds in which the Policyholder maychoose to invest his money such that he gets returns according to his risk appetite.


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In this plan, the Life Insured will receive the entire Fund Value on the Policy

maturity. However, if the Life Insured dies within the policy tenure, the nominee

would receive Double Death Benefit, i.e. the Sum Assured + the Fund Value as Death

Benefit. This is paid to combat the immediate expenses on the premature death of the

Life Insured and then the policy terminates.

Key Features of Reliance Life Classic Plan- Limited Premium

This is a simple Unit Linked Insurance Plan with Limited payment

The Policy Term is 5 years more than the Premium Paying Term

Fund Value is paid at the end of the Plan as Maturity Benefit.

In this plan, there is double Death Benefit of Sum Assured + Fund Value on death of

Life Insured



There is a wide option for investment in 8 Funds



Benefits from Reliance Life Classic Plan- Limited Premium

Death Benefit In case of death of the policy holder, the nominee gets Double Death

Benefit, i.e. the Sum Assured + Fund Value.


Income Tax Benefit - Life Insurance premiums paid up to Rs1, 00,000 are allowed as a

deduction from the taxable income each year under section 80C

3. Reliance Life Pay Five PlanReliance Life Pay FivePlan is a unit linked insurance plan (ULIP) where the Premium

needs to be paid only for 5 years. This is a Non-Traditional Plan without Bonus Facility.

In this plan, annual premium is paid only for a period of 5 years but the policy continues till

the end of the Policy Term. There are 8 funds in which the Policyholder may choose to invest

his money such that he gets returns according to his risk appetite. In this plan, the Life

Insured will receive the entire Fund Value on the Policy maturity. However, if the Life


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Insured dies within the policy tenure, the nominee would receive Double Death Benefit, i.e.

the Sum Assured + the Fund Value as Death Benefit. This is paid to combat the immediate

expenses on the premature death of the Life Insured and then the policy terminates.

Key Features of Reliance Life Pay Five Plan

This is a 5 pay Unit Linked Insurance Plan

The premium needs to be paid for 5 years but the policy continues till the end of the

Policy Term

There is double Death Benefit of Sum Assured plus Fund Value on death of Life

Insured

Fund Value is paid as Maturity Benefit.

There are 5 additional riders that are available in this plan





Benefits from Reliance Life Pay Five Plan

Death BenefitIn case of death of the policy holder, the nominee gets Sum Assured + FundValue.


Income Tax Benefit - Life Insurance premiums paid up to Rs1,00,000 are allowed as a

deduction from the taxable income each year under section 80C

4. Reliance Life insurance-classic plan-II

Key features Reliance Life Insurance Classic Plan II

Dual benefit of market linked return and insurance protection.

Amount equivalent to base sum assured is payable in extra on

account of accidental deaths.

Investment opportunity with flexibility - Choose from 8 pure

investment fund options


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AREA OF OPERATION:

RLIC launched around 600 branches in 10 months, taking the overall branch network above

to 740. Reliance Life Insurance Co. is one of the only two ISO 9001:2000 certified Life

Insurance companies in India. It has been awarded with the Jamnalal Bajaj Uchit Vyavahar

Puraskar 2007- Certificate of Merit in the Financial Services category by Council for Fair

Business Practices (CFBP). The head-office of it is at Mumbai.

Reliance Life Insurance aims to be the consumers preferred life insurer by und erstanding

and meeting his needs.

OWNERSHIP PATTERN:

Reliance Life Insurance Company is owned by Reliance Capital (ADAG -Anil Dhirubhai

Ambani Group) and it's only private life insurance in India who operated company without

foreign partner for first 9 years. But in the year 2010-11, Japanese company Nippon Life

Insurance purchased 26% shares of Reliance Life Insurance.

COMPETITORS INFORMATION:

Life Insurance Corporation:

Additional flexibility with options like Systematic Transfer Plan

&Premium Redirection.

Option to pay Top-up Premium(s).

Liquidity in the form of partial withdrawals after completion of

five policy anniversaries.

Exchange option to take advantage of any new plans we may

offer in the future.

A host of optional rider benefits to enhance protection cover.


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LIC is the most trusted brand in India. It has a very wide range of business strategy all over

India and abroad.it was started in year of 1956. LIC has been one of the pioneering

organizations in India who introduced the leverage of Information Technology in servicing

and in their business. Data pertaining to almost 10 crore policies is being held on computers

in LIC.

SBI Life Insurance:

SBI Life Insurance Company Limited is a joint venture between the State Bank of

IndiaandBNP Paribas Assurance.SBI Life Insurance is registered with an authorized capital

of Rs 2000 crores and a Paid-up capital of Rs 1000 Crores. SBI owns 74% of the total capital

and BNP Paribas Assurance the remaining 26%.

State Bank of India enjoys the largest banking franchise in India. Along with its 7

Associate Banks, SBI Group has the unrivalled strength of over 14,500 branches across the

country, arguably the largest in the world.

Bajaj Allianz life insurance:

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates-

Allianz AG, one of the world's largest insurance companies, and Bajaj Auto Limited, one of

the biggest 2 and 3 wheeler manufacturers in the world. Bajaj Allianz Life Corporation

limited was incorporated on 12th March 2001. The company received the Insurance

Regulatory and Development Authority (IRDA) certificate of Registration (R3) No. 116 on

3rd August 2001 to conduct Life Insurance Business in India. Bajaj Allianz Shareholder

Capital base stands at Rs.500 crore with Bajaj Auto Limited and Allianz AG of Germany

holding 74% and 26% stake respectively. It is the 2nd largest private player in Insurance

industry in India with a market share of 13.8% amongst the private companies as on Feb

2012.

Aviva Life Insurance

Aviva is UKs largest and the worlds fifth largest insurance Group. It is one of the

leading providers of life and pensions products to Europe and has substantial businesses

elsewhere around the world. With a history dating back to 1696, Aviva has a 45 million-

customer base with presence in 27 countries. It has 359 billion of assets under management.


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In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group of

companies. Aviva holds a 26% stake in the joint venture and the Dabur group holds the

balance 74%

Max New York Life Insurance:

Max New York Life Insurance, Indias leading private life-insurance company emerged as

one of the best employer in the recently announced Business. The company was founded in

1845 as the Nautilus Insurance Company in New York City, with assets of just $17,000. It

was renamed the New York Life Insurance Company in 1849.Max New York Life Insurance

Company is a joint venture between New York Life International Inc., Max New York Life

Insurance Co Ltd is an Rs.250 crore joint venture with a paid up capital of Rs.807 crore. The

insurance agents employed at Max New York Life Insurance Co Ltd are trained in-house

with a rigorous training program of over 152 hrs, much higher than the standard 100 hrs of

mandatory training laid down by the IRDA. Max New York Life Insurance was ranked 7th in

the survey and the best life insurance company to work for in India.

Birla Sun Life Insurance Company: -

Birla Sun Life Insurance Company is a joint venture between Birla group and Sun Life

Financial. It is a private sector company.The company was registered in 2001. Birla owns

74% of the total capital and sun life the remaining 26%.

HDFC Standard: -

HDFC standard is 74:26 joint venture between HDFC and Standard Life. It is a private sector

company. The company was registered in the year 2000. HDFC standard is having 1000

advisors in 11 towns.

ICICI Prudential Life Insurance: -

ICICI Prudential Life is 74:26 joint venture between ICICI and Prudential. It is a private sector

company. ICICI begin their operations in December 2000 after receiving approval from

IRDA. Now ICICI prudential is having over 1000 offices, over 270000 advisors and

21bancassurance partners.

Tata AIG life insurance:


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Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company of

the Tata Group and American International Group, Inc. (AIG). The Tata Group holds 74 per

cent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG Life

provides insurance solutions to individuals and corporate. Tata AIG Life Insurance Company

started to operate its business in India on April 1, 2001. Tata AIG is having 3000 advisors all

over India.

ING VYSYA LIFE INSURANCE:

ING Vysya Life Insurance Company Limited a part of the ING group the worlds largest

financial services provider entered in the private life insurance industry in India in September

2001.ING Vysya Life is currently present in 246 cities and has a network of over 300branches, staffed by 7,000 employees and over 51,000 advisors, serving over 5.5 lakh

customers.

INFRASTRUCTURAL FACILITY:

Reliance life insurance is providing good infrastructural facilities which are required for

employees to perform their work in a better way. During the year, the Company has invested

in additional infrastructure capacity and human capital, in terms of offices, technology, staff,

financial consultants, in order to be well positioned to increase the growth momentum in the

year ahead. The company stepped up the recruitment program and also training program for

the advisors. Reliance life insurance providing medical card (RLIC medical card) to the

employee, in which employee can take medical facility up to 5 lakhs. Employee can use this

facility for their family also. Reliance life insurance providing online attendance system for

their employees. It also provide online official id to their employee.

ACHIEVEMENTS OR AWARDS:

Largest private insurer in terms of policy count in as of 31st Mar 2011

4th largest private player in terms of Individual Premium

Amongst the fastest growing Companies for 4 years in a row

Continuous increase in market share over 4 years; from 1.9% in 2005-06 to 10.26% in2009 -10


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RLIC has achieved a growth rate of 21% while the private industry has grown at 13%

One of the Fastest to reach the 7 million policy mark

1248 branches, over 1,89,000 Advisors

RLIC continues to be amongst the foremost Life Insurance companies in India to be

certified ISO 9001:2008 for all the processes.

AAA rating by Brickworks Ratings, a SEBI licensed rating agency, for Enterprise

Wide Risk Management and Financial Strength

Winner ofBest Non-Urban CoverageAward at Indian Insurance Awards 2011

Won the Celent Model Insurer Award 2010 in the area of Service

Won the CMO Asia Award for Best Campaign-Financial Categoryand Brand

Excellence- 2010

Amongst the Top 3 Most Trusted Service Brands in the Insurance category as per

the Brand Equity sMost Trusted Service Brands 2011 Survey

Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007- Certificate of

Merit in the Financial Services category by Council for Fair Business Practices

(CFBP).

The Company has also won the DL Shah Quality Council of India Commendation

Award in the services category in Feb 2008 for its work


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WORKFLOW MODEL:

The work flow model of the organization is represented by a flow chart.

Dealers/ salesmen / surveyor obtain contact information about prospective customer

CUW (central

under writing)

RPC (regional process

center)

OperationSales manager

Sales promoter (Agent) /

sales Manager

Branch operation

ClientPolicy

document

Rejection

Rejection

Rejection

RejectionRejection


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FUTURE GROWTH AND PROSPECT:

Reliance Life Insurance would strive hard to achieve the 3 prospects 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 practice

3. MCkencys 7S frame workFOR RELIANCE LIFE INSURENCE

The Seven-S is a framework for analyzing organizations and their effectiveness. It looks at

the seven key elements that make the organizations successful, or not: strategy; structure;

systems; style; skills; staff; and shared values.

The 7-S model is a tool for managerial analysis and action that provides a structure with

which to consider a company as a whole, so that the organization's problems may be

diagnosed and a strategy may be developed and implemented.

The 7-S diagram illustrates the multiplicity interconnectedness of elements that define an

organization's ability to change. The theory helped to change manager's thinking about how

companies could be improved. It says that it is not just a matter of devising a new strategy

and following it through. Nor is it a matter of setting up new systems and letting them

generate improvements.


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1. STRUCTUREIn the Reliance life insurance each and every department is empowered with the officer,

clerk and sub staff. The authority is delegated to officer/manager to extract work from the

staff. The each department consists of members based on its requirements. Thus it is having

an effective work on the various activities efficiently and effectively.

The board of directors, chair, and managing director (CMD)

Top management is responsible for all the organizational activities and also they are

responsible for decision making and performance taken by each department.

Middle level management is concerned about their respective departmental activities.

The departmental managers communicate with their respective department activity to

the top level management regularly or weekly.

The lower level management consists of assistant manager of each department. They

will communicate and report their performance and activity to the middle level

manager.

ORGANISATIONAL STRUCTURE OF BAJAJ ALLIANZ LIFE INSURANCE

AT BANGALORE CITY

BRANCH

CO-ORDINATOR

COMMERCIAL

EXECUTIVE

ASSISTANT

SALESMANAGER

TERRITORY

MANAGER

SECURITY NON- STAFF

BRANCH


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2. SKILLSIt is a more reputed insurance company, as it is providing financial solution of where to

invest, how to invest and number of products with having more benefits to investors. It has

reputed customers who are loyal to the organization. The service given to the customers are

accomplished as per their requirements. Financial services generally do mass supporting

services are rendered to all types (classes) of customers. More over the people feel their task

is in safe hands of the industry. The organization is having various capabilities over the

competitors. These skills are broadly categorized as follows:-

Market knowledge, analytical skills, Services, Research, Personal/administration, Soft skills,

Supporting, Medical, Finance, Information relations.

3. STYLEReliance life insurance follows participative management, where in each major decision

regarding the company is taken in tip down fashion and other decision like targets and growth

aspects RELIANCE LIFE INSURANCE follows bottom up style.

It is important to distinguish between the basic personality of a top management team and the

way the team comes across to the organization. Organization may listen to what managerssay but they believe what managers do. Not words, but pattern of action is decisive. The

power of style then is essentially manageable.

4. STRATEGY

The BAJAJ ALLIANZ has set of objectives, strategies to achieve the objective, the course of

action to be taken to achieve the objective and guidelines for the course of action.

BAJAJ ALLIANZ adopts low pricing strategy to generate huge returns and good market

share in the industry, since it has well expanded its business all over INDIA.

BAJAJ ALLIANZ charges minimal to its clients for the services. It provides more benefits to

customers compared to its competitor. Hence it is known for the good pricing strategy in the

industry.


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5. SYSTEM

The Reliance life insurance has various techniques to control this procedure as system like to

improve the back office targets by giving addition support.

Information system: the implementation of computers has made information flow fast and

reliable. The information is versatile.

Recruitment, training and development system

Recruitment process starts with the identification of the vacancies by the department head of

the respective department. A form requesting for the human resource is sent from the

department to HRD.

6. STAFF

Staff (in the sense of people, not line/staff) is often treated in one of two ways. At the hard

end of the spectrum, we talk of appraisal systems, pay scales, formal training program and the

like. At the soft end, we talk about morale, attitudes, motivation and behavior.

The Reliance life insurance is in the course of cutting down the cost of service. If it starts

recruiting, the selection is done based on the education qualification first class degree.

7. SHARED VALUES

The value shared by the members of an enterprise is known as the shared values. The

organization of BAJAJ ALLIANZ is having a strategy of sharing values. The significant

meaning or guiding concepts that an organization induces in its members. The shared value

of BAJAJ ALLIANZ is:

Transparency and trust.

Human touch.

Empowered teams.

Responsive to customer needs.


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4. SWOT ANALYSISA SWOT analysis is a strategic planning tool used to evaluate a business or

abusiness ventureor any other situation that requires a decision. A SWOT analysis

evaluates the Strengths, Weaknesses, Opportunities, and Threats of the project.

Helpful to

achieving the objective

Harmful to

achieving the objective

Internal

(attributes of the

organization)

Strengths Weaknesses

External

(attributes of the

organization)

Opportunities Threats

STRENGTHS:

1) Reliance Life Insurance Company Limited is the part of the Reliance Capital.

2) The brand name is enough to sell the products easily.

3) Private placement of Rs. 10,000 crs worth of securities with RBI by the government. Led

to an improvement in market securities.

4) Strong liquidity from FII was the major reason for the up move.

5) Range of products

6) Reliance has a long and strong history of solvency, financial Stability.
http://www.freshthinkingbusiness.com/swot-analysis.htmlhttp://www.freshthinkingbusiness.com/swot-analysis.htmlhttp://www.freshthinkingbusiness.com/swot-analysis.htmlhttp://www.freshthinkingbusiness.com/swot-analysis.html


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WEAKNESSES:

1) Newly established company, so people seems it risky.

2) Lack of staff. Projects, Thesis, Dissertation

3) Lack of advertisement, so most of the customers are not aware of the Reliance Life

Insurance.

OPORTUNITIES

1) There is a vast untapped market in India. The life insurance

Penetration in India is approximately 2.5%. So it has large Potential.

2) Intention of traditional products is to encourage long term, Regular and disciplined

savings to systematically build up a target fund.

3) The average insurance premium being collected by the company has been growing

exponentially year on year.

THREATS:

1) The main threat is from the other players who have grabbed approximately 15% of the

market share.

2) As the government has scrapped the rebate on the life insurance premium, the people

who used to invest in life insurance for the sole motive of tax benefit may turn to other

instruments.


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5. ANALYSIS OF FINANCIAL STATEMENT

FY 2008-09 FY2009-10 FY 2010-11

DEBT EQUITYRATIO

CURRENT RATIO

QUICK RATIO

(FOR BALANCE SHEET REFER ANNEXTURE)

5. LEARNING EXPERIENCE

part a jyothi

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