COMPANY PROFILE

1 A.COMPANY PROFILE OF RELIANCE LIFE INSURANCE

ABOUT FOUNDER OF THE COMPANY 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 is more 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, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned Reliance a place on the global 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, the Indian stock market was a place patronised by a small club of elite investors 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 and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become Indias largest private sector enterprise. Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the worlds largest shareholder families.

ABOUT RELIANCE LIFE INSURANCE Reliance Life Insurance offers you products that fulfill your savings and protection needs. Our aim is to emerge as a transnational Life Insurer of global scale and standard. Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance - Anil Dhirubhai Ambani Group also has presence in Communications, Energy, Natural Resources, Media, Entertainment, Healthcare and Infrastructure. VISION & MISSION Vision Empowering everyone live their dreams. Mission Create unmatched value for everyone through dependable, effective, transparent and profitable life insurance and pension plans. GOAL Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below:

Emerge as transnational Life Insurer of global scale and standard. Create best value for Customers, Shareholders and all Stake holders. Achieve impeccable reputation and credentials through best business practices.

ACHIVEMENTS OF RELIANCE LIFE INSURANCE COMPANY

1. RLIC closed the last financial year with New Business Premium of Rs 3513 Crores. 2. For 3 successive years, since inception, the Company has been amongst the fastest growing Companies in the Life Insurance Industry achieving a growth rate of 28% in the last financial year against a market growth of -6%. In the Individual Business segment, the company achieved a growth rate of 59% in terms of WRP against the private industry growth of 1%. 3. Reliance Life has been one of the fastest gainers in market share growing from 1.9% amongst private players in Mar'06 to 10.3% as of Mar'09. This has resulted in the Company growing to becoming the 4th largest private player in just two years starting at position of 11. 4. The Company has been the fastest company to reach the 3 million policy mark and was the 3rd largest private insurer in terms of Policy count in 2008-09 5. Reliance Life has accomplished a large distribution ramp-up in the Industry in a short span of time by opening 1145 branches in just over 2 year. 6. RLIC continues to be amongst the foremost Life Insurance companies in India to be certified ISO 9001:2000 for all the processes. 7. Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007- Certificate of Merit in the Financial Services category by Council for Fair Business Practices (CFBP). 8. The Company has been the fastest company to reach the 3 million policy mark and was the 3rd largest private insurer in terms of Policy count in 2008-09. 9. The Company has also won the DL Shah Quality Council of India Commendation Award in the services category in feb 2008 for its work on promoting 'self help channels for service'

LEADERSHIP TEAM
BOARD OF DIRECTORS

Gautam Doshi, Director Gautam is the Group Managing Director of Reliance Anil Dhirubhai Ambani Group and Director of Reliance Life Insurance Company Limited. In his long and illustrious career spanning 30 years, Gautam has held key positions in various organisations such as M/s. Bansi S. Mehta, RSM & Co. and Ambit Corporate Finance Pvt. Ltd. Presently, as a Board member of various reputed public limited companies, Gautam continues to power the industry with his profound knowledge and expertise. Gautam, a qualified Chartered Accountant, has served as the Chairman of the Institute of Chartered Accountants of India for the year 198283. He was also elected to the Council of the Institute of Chartered Accountants of India for two consecutive terms spanning over 1992 to 1998.

Satya Pal Talwar, Director Satya Pal is the Director of Reliance Life Insurance Company Limited. He holds an experience of more than 35 years in operations and policy formulation. Through his distinguished service in the financial industry, Satya Pal has served as the Chairman and Managing Director of renowned organisations such as Bank of Baroda, Union Bank of India and Oriental Bank of Commerce. His in-depth knowledge of the sector has seen him rise quickly into pivotal positions at advisory and board levels in Indian and as well Global organisations such as SEBI, IDBI and MasterCard International. He has also held the coveted position of Deputy Governor of RBI from 1994 to 2001. Satya Pal holds a degree in Law. He is a Certified Associate of the Indian Institute of Bankers and a member of the Indian Council of Arbitration.

Saumen Ghosh, Group President Saumen is currently the Group President of Reliance Capital Limited. Saumen has worked in the UK for one of the leading Chartered Accountancy firms and then moved to Australia to join a subsidiary of the Allianz Group where he held various senior positions in the finance and international division. In his immediate past assignment, before joining Reliance Capital Limited, Saumen was responsible for the overall Allianz operations in India and Middle East. Saumen is a qualified Chartered Accountant and is a member of the Institute of Chartered Accountant in England & Wales and Australia.

Malay Ghosh President Malay leads all activities at Reliance Life Insurance Company Limited Life and his key focus is on rapid expansion of all channels and accelerating the companys growth trajectory. Malay has over 24 years of work experience in the insurance industry. He has worked for 17 years with LIC across various functions and for 7 years with Bajaj Allianz Life Insurance where he was last designated Head of Sales. Malay holds a Masters degree in statistics.

Maneesha Thakur, Chief Human Resources Officer Maneesha in her role as the Chief Human Resource Officer at Reliance Life Insurance Company Limited, has developed a performance driven and employee centric culture. She has been at the forefront of the organization growth by facilitating talent acquisition and management. Maneesha in her career span of 15 years has worked with companies like SHCIL, ALLTEL, Transamerica, ICICI Bank and VSNL. In addition to an MA in English Literature, Maneesha holds a Post Graduate Diploma in Personnel Management & Industrial Relations from XLRI, Jamshedpur. C Mohan, Chief Technology Officer C Mohan is the Chief Technology Officer (CTO) of Reliance Life Insurance Company Limited and he is responsible for Information Technology Strategy Formulation and Deployment. Mohan is an Engineering Graduate and holds many International IT Certifications. Mohan has over 12+ years of IT Experience of which he spend more than 7+ years Executive Management Experience in overseas. He worked with Cathay Pacific Airways and Computer Sciences Corporation in Asia Pacific Role at Singapore before he joined Reliance Life. In Year 2008 he has been awarded as Pioneer CIO by CIOL-DataQuest and Bold 100 CIO by IDG-CIO Forum. He also received the Early SOA Adopter Award from IBM. He has recently been selected as a honoree in Global CIO 100 2009 Award Summit to be held in Colorado, USA.

R Rangarajan, Chief Investment Officer Rangarajan is the Chief Investment Officer at Reliance Life Insurance Company Limited. He alongwith his team, strives to give the best possible returns on investments to shareholders and policyholders, keeping in mind their appetite for risk. Rangarajan draws on his in-depth knowledge of investment and experience of 25 years to ensure that the goals of the organisation are metwithout any compromise on the benefits of the investors. Prior to being a part of Reliance Life Insurance, Rangarajan worked with AMP Sanmar Life Insurance as Head Investments for three years. His earlier assignment was with a large Mutual Fund organization. Rangarajan is a qualified Chartered Accountant. S V Sunder Krishnan, Chief Risk Officer Sunder is the Chief Risk officer for Reliance Life Insurance and is responsible for overseeing Risk Management, Internal Audit and Compliance functions at Reliance Life Insurance. Sunder came with 23 years of experience and knowledge in Internal Audits, Compliance, Assurance Consulting and Risk Management. He has worked for various leading organizations such as DSP Merrill Lynch, ING Vysya, Credit Lyonnais, Standard Chartered, Bank International Indonesia, Ernst & Young and Delloitte at senior and middle management positions with exposure to businesses and operations in more than 12 countries. Sunder is a qualified FCA, CISA, and CCSA. He is also the President of Information Systems Audit Control Association (ISACA-USA), Mumbai Chapter for the year 2007-08 and was a member of the Board of Advisors to Bombay Chartered Accountants Society (BCAS) for Internal Audit studies for the year 2005-06.

RELIANCE ADA GROUP

HISTORY

Reliance Capital Limited announced the launch of its life insurance business on February 1, 2006. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority. It was in August 2005 that the ball was set rolling when Reliance Capital Limited, the financial arm of Reliance Anil Dhirubhai Ambani Group (ADAG) announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited; and the formal transfer of shares took place in October 2005. The company will issue all policy contracts under the Reliance Life Insurance Company limited name. All the existing policy contracts also stand transferred to the Reliance Life Insurance entity with all the original contractual terms and commitments intact.

The Story of Growth

Birth of Birth of Reliance Reliance First First Textile Mill Textile Mill at Naroda at Naroda Launch of 11stst Launch of IPO for general IPO for general public - -start of aa public start of trend trend Twin IPOs receive Twin IPOs receive 1million applications 1million applications

First corporate in First corporate in Asia to issues Asia to issues 50 and 100 yrs 50 and 100 yrs bond in US bond in US debt market debt market

1966

1971-72 Launch of Launch of Only Only Vimal Vimal brand brand

1977

1985

1992

1993

1997

1998

Total Assets Total Assets cross 1000 Cr cross 1000 Cr

Sales Cross 4000 Cr. Sales Cross 4000 Cr. Becomes Largest Becomes Largest private sector Co. in private sector Co. in India India

Total assets Total assets cross 35000 Cr cross 35000 Cr Revenues cross Revenues cross 14000 Cr. 14000 Cr.

Reliance started from scratch, only to become Indias largest private sector company in ~40 years
A Reliance Capital com pany

And the journey

Group Profits Group Profits cross 2500 Cr cross 2500 Cr Revenues cross Revenues cross 20000 Cr 20000 Cr Total Assets Total Assets cross 50000 Cr cross 50000 Cr Group revenues Group revenues cross 60000 Cr cross 60000 Cr Largest Largest Business group Business group in India in India ADA Grou p form p e d AD Grou form ed A AM PSanm a acq uire P r AM Sa m r a uire d na cq d a n ren a e d Re nce n d nm e lia ce d ad rea m Re lian Life In ra n su race Life Insu n ce

Became the 11 stst Became the company to company to cross 11 million cross million policy mark in 22 policy mark in years of years of operations operations

2000

2000 Re lia ce lia n Re nce Com m icat ion m un ion Com un icat p la a nn nce d la ns nn ou ce p ns a ou n d

2001

2003

2005

2006 -07

Sep 2007

2007

C on on trollinstak e in g e C trollin g stakin B SS (R elian S S elian ce E B E (R ce E ergy) n E ergy) n L argest m ile argest m ob ob ile L services co. inIn d d ia services co. inIn ia

Reliance Life Relia nce Life Insura nce ra nce nk Insura ra nk 6 h at 9 3 Cr tth 3 0 6 at 90 Cr

Reliance became only Reliance became only the second National the second National Insurance player to Insurance player to get ISO 9001 -2000 get ISO 9001 -2000

A Reliance Capital com pany

Continues .
Crosses 2million Crosses 2million policies policies
RCOM crosses RCOM crosses 50 million 50 million customers customers A total of more than 2000 A total of more than 2000 Branches on anvil in the Branches on anvil in the fiscal year.. fiscal year..

2008

2008 Reliance MF Reliance MF becomes 11 stst becomes AMC to AMC to cross cross

2008

2007 -08

2008 -09

R L ju m s to L IC m p s RIC ju p to 4thp osition osition 4thp w ith275 C r ith w 2750 C 0r

100,000 Cr 100,000 Cr

Be t Cha he nge
A Reliance Capital com pany

SWOT ANALYSIS
STRENGTHS: Dedicated Employees. Well Efficient Management. Strong and popular brand name. Adaptability to changes. Goodwill of the company. Transparency in service.

WEAKNESS: Lack of good services. Lack of awareness about insurance among people. Less coverage in Rural Areas. Lack of credibility among the people because Reliance life insurance being a private player

OPPORTUNITIES: Fast growing economy. Increasing per capita income in India. Saving behavior.
High growth of Traditional industry.

THREATS: Arrival of new entrants in the insurance industry. Cut throat competition within the industry

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CORE VALUES
Reliance Life Insurance Company Limited has some core values which are listed as follows: 1) Result Oriented 2) Performance Driven 3) Customer Focused 4) Learning and Development Oriented 5) Employee Centric 6) Informal and Fun

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1. B COMPANY PROFILE OF BAJAJ ALLIANZ LIFE INSURANCE

Bajaj Allianz Life Insurance Company limited is a joint venture between two leading conglomerates Bajaj Auto limited and Allianz AG company, whose total asset value is of Rs 5900000 cr. Bajaj whose wealth as of now is Rs 8000 cr. group in India, 55 years of experience, 4th largest group in the world. Above 15000 employees, largest 2 & 3 wheeler manufacture in India. Allianz established in 1890, who has 115 years of experience in financial year. Bajaj Auto is one of the most trusted name is Indian auto for over 55 years. At Bajaj Allianz customer delight is our guiding principle. Ensuring world-class solutions by offering customized products with transparent benefits, supported by best technology is our business philosophy. Notwithstanding the recession and a volatile stock market, Bajaj Allianz life insurance posted a profit of Rs 45 cr for financial year 2009 against a loss of Rs 16 cr. in the previous year. The company new business premium fell to Rs 4491 cr. in the year against Rs 6674 cr. recorded in the last year. We have been able to make a profit of profit of Rs 45 cr. even in these difficult times. Our new business premium declined by 30% to Rs 4491 cr. because the stock market declined and we didnt open any new office in FY 09, Bajaj Allianz country manager and Bajaj Allianz life insurance CEO kamesh Goyal said. Bajaj Allianz Life Insurance has around 1200 offices and the company would not increase the number this year too, Goyal said. The companys renewal premium grew by more than 100% to Rs 6133 cr. in the 20082009 as compared to Rs 3051 cr. in the previous fiscal year, he said. In the year, Bajaj Allianz life insurance issued 29 lakh policies which were the second largest in the industry.

Vision
To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry. To be the number one insurer for creating shareholder value.

Mission
As a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money.

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1.2) TRADITIONAL PLANS OF THE COMPANY

1.2.A )TRADITIONAL PLAN OF RELIANCE LIFE INSURANCE:Life insurance products are designed to suit the requirements of customers. Fundamentally the product provide for: Risk cover Investment Health cover In every product, to a certain degree, risk cover is imperative for it to fall under the category of insurance. Based on the coverage of the product, the premiums are calculated and the customer pays accordingly. In order to suggest the right product, it is essential for an agent to understand the requirements of the customer well. The traditional plans of the company have the following features: Fixed Tenure. Potential for better returns Transparency Flexibility in investment Flexibility to invest more Flexibility to skip the premium Flexibility to choose the cover High liquidity Age, term, and sum assured decide the amount of premium. Top- ups and switches are not allowed Reliance Life Insurance Company Limited has offered 9 Traditional plans to the customers, which are listed as follows: 1) Reliance Term Plan 2) Reliance Whole Life Plan 3) Reliance Endowment Plan 4) Reliance Special Endowment Plan 5) Reliance Cash Flow Plan 6) Reliance Credit Guardian Plan 7) Reliance Special Credit Guardian Plan Each of the above traditional plans is discussed as follows: 1) Reliance term plan:This insurance policy is designed for those who only want life cover for the protection of their family, and do not wish to save for themselves. It can also be useful to business firms

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that wish to provide financial security to their business against the sudden loss of partners or valuable manpower. Since there is no saving element or bonus provision, the premium is very low. Hence, this is a high-risk plan with a low premium. Features: a) Purely a term plan b) Entry age minimum 18 years and maximum 65 year c) Maximum premium paying term is 30 year d) Loan facility N.A. e) Maturity amount = Sum assured 2) Reliance Whole Life Plan: This insurance policy is designed for people who do not wish to avail of any benefits themselves but wish to create an immediate estate to protect their family by availing of insurance cover on their life at a very low cost. Features: a) It is a whole life insurance policy with profits b) Low cost life cover c) Maturity age is 85 year or 99 years last birthday as chosen d) Maturity amount = Sum assured + Vested bonus e) Tax benefit is available 3) Reliance Endowment Plan: Reliance Life Insurances Reliance Endowment Plan is the key to all your financial needs. It is an inexpensive and easy way to protect you, your family or your business. In a nutshell this plan will keep you financially prepared for all the special occasions in your life - your daughters wedding, your childs university education or even a new office for your business - by eliminating the burden that a shortage of money creates. In the event of your untimely death, Reliance Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides. Reliance Endowment Plan also gives you the additional benefit of participating in the companys profits, which you will receive at the end of the policy period. Features: a) Entry age minimum is 5 year and maximum 65 year b) Maturity age minimum is 18 year and maximum 75 year c) Minimum premium paying term is 5 year and maximum 35 year in case of regular and in case of single 15 year d) Minimum sum assured is Rs. 25,000 or as determined by the minimum premium e) Maximum sum assured is Rs. 5, 00,000 (entry age below 18 years and no limit for entry age 18 and above) f) Premium mode annual, half yearly, quarterly and monthly (by salary deduction only) g) Loan up to 90% of the surrender value of the policy

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h) Maturity amount = Guaranteed sum assured + Reversionary bonus 4) Reliance Special Endowment Plan: This insurance policy is designed for people who wish to combine savings with extended security. The unique feature of this policy is that life protection continues for five years after you have stopped the payment of premium. Payment of sum assured at the end of premium paying term and extension of life cover thereafter for the full sum assured for a period of 5 years, are characteristics of the policy. This plan also participates in the profits.

Features: a) Entry age minimum 12 year and maximum 65 year b) Minimum sum assured is Rs. 25,000 c) Minimum premium paying term is 10 year and maximum 40 year d) Unique feature of this policy is that five year life protection continues after you have stopped the payment of premium e) Tax benefit is available f) Under this policy bonus is compounded yearly g) Loan facility is available h) Maturity amount = Full sum assured before maturity date + Vested bonus at the time of maturity date

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1.2. B) TRADITIONAL PLANS OF BAJAJ ALLIANZ LIFE INSURANCE

I. ENDOWMENT PLAN Saving plan, which offer bonuses, are excellent long term plan with complete safety. Our products offer additional benefits which include 4 times life cover at a little extra cost, limited premium payment terms and compounded reversionary bonuses making it a very good long term investment. Invest Gain Save Care Economy SP Life Time Care Super Saver

1. Bajaj Allianz Invest Gain Invest Gain is a specially designed plan that offers a unique combination of benefits that help you develop a sound financial portfolio for your family. 4 Times Life Cover at a little extra cost. Limited premium payment option available. Additional Benefits: a) Accidental Death Benefit and Disability Benefit. b) Critical Illness Benefit and Hospital Cash Benefit. c) Family Income Benefit: In case of death or accidental total permanent disability of insured, all future premiums are waived and 1% of the sum assured is paid monthly.

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2. Bajaj Allianz save Care Economy SP A One-time payment Investment plan that provides for savings with high risk cover for 10 years and also participates in the profits of the company. It offers you high risk cover with easy liquidity and high returns. a) A single premium endowment plan that participates in the profits. b) 10 year Investment plan. c) Benefits payable on maturity. c) Loans available.

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3. Bajaj Allianz life time care A whole life plan, which provides survival benefits at the age of 80, thereby making sure you are financially secure at the time when you need it the most. Additional Benefits: a) Accidental Death Cover and Disability Cover. b) Critical Illness Cover and Hospital Cash Cover. c) Waiver of Premium Benefit.

4.Bajaj Allianz Super Saver plan Bajaj Allianz Super Saver is a regular premium endowment plan, which helps you save regular amounts for a safer tomorrow. It also provides you with extra benefits of Guaranteed Additions to your sum assured, at the end of each policy year.

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II.

MONEY BACK PLAN Money back plans are Traditional Insurance plans that provide the investor with returns at regular stages of life. CashGain

1)Bajaj Allianz Cash Gain plan A Money back plan which guarantees 125% payout + bonuses. Quadruple life cover. 5 easy payouts which give upto 125% + bonuses.

Additional Benefits: a) Accidental Death Benefit and Disability Benefit. b) Critical Illness Benefit and Hospital Cash Benefit. c) Family Income Benefit: In case of death or accidental total permanent disability of insured, all future premiums are waived and 1% of the sum assured is paid monthly.

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1.3) INDUSTRY PROFILE

MEANING OF INSURANCE Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is a collective bearing of risk. Insurance is a financial device to spread the risks and losses of few people among a large number of people, as people prefer small fixed liability instead of big uncertain and changing liability. Insurance can be defined as a legal contract between two parties whereby one party called insurer undertakes to pay a fixed amount of money on the happening of a particular event, which may be certain or uncertain. The other party called insured pays in exchange a fixed sum known as premium. Insurance is desired to safeguard oneself and ones family against possible losses on account of risks and perils. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. IMPORTANCE OF INSURANCE Insurance constitutes one of the major segments of the financial market. Insurance services play predominant role in the process of financial Intermediary. Today insurance industry is one of the most growing sectors in India. There is lot of potential in the Indian Insurance Industry. There are many issues, which require study. The scope of the study of Insurance industry of India would be very great as there are ongoing Developments in the industry after the opening of the sector. One of the major issues is the effects on LIC after the entry of private players in the market. Though market share of LIC has been affected, it has improved in terms of efficiency. There are number of other hot topics like penetration of Health Insurance, Rural marketing of insurance, new distribution channels, new product ranges, insurance brokers regulation, incentive scheme of development officers of LIC etc. So it offers lot of scope for studying the insurance industry. Right now the insurance industry has great opportunities in a country like India or China which huge population. Also the penetration of insurance in India is very low in both life and non-life segment so there is lot potential to be tapped. Before starting the discussion on insurance industry and related issues, we have to start with the basics of insurance. So first we understand what is insurance? How the word insurance is different from the word assurance? Etc.

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HISTORY OF INSURANCE The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders used to bear risk of the carvan by giving loans, which were later repaid with interest when the goods arrived safely. The concept of insurance as we know today took shape in 1688 at a place called Lloyds Coffee House in London where risk bearers used to meet to transact business. This coffee house became so popular that Lloyds became the one of the first modern insurance companies by the end of the eighteenth century. Marine insurance companies came into existence by the end of the eighteenth century. These companies were empowered to write fire and life insurance as well as marine. The Great Fire of London in 1966 caused huge loss of property and life. With a view to providing fire insurance facilities, Dr. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office. Life insurance in its modern form came to India from England in 1818. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. The insurance companies, which came into existence between 1818 and 1869, treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent. The first Indian insurance company, the Bombay Mutual Life Assurance Society came into existence in 1870 to cover Indian lives at normal rates. The Insurance Act, 1938, the first comprehensive legislation governing both life and nonlife branches of insurance were enacted to provide strict state control over insurance business. This amended insurance Act looked into investments, expenditure and management of these companies. By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75 provident societies carrying on life insurance business in India. Insurance business flourished and so did scams, irregularities and dubious investment practices by scores of companies. As a result the government decided to nationalize the life assurance business in India. The Life Insurance Corporation of India (LIC) was set up in 1956. The nationalization of life insurance was followed by general insurance in 1972.

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MEANING OF LIFE INSURANCE There are three parties in a life insurance transaction: the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person. Another important person involved in a life insurance policy is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. Life insurance may be divided into two basic classes term and permanent.
Term life insurance provides for life insurance coverage for a specified term of

years for a specified premium. The policy does not accumulate cash value.
Permanent life insurance is life insurance that remains in force until the policy

matures, unless the owner fails to pay the premium when due.
Whole life insurance provides for a level premium, and a cash value table included

in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits; guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy.
Universal life insurance (UL) is a relatively new insurance product intended to

provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account. If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy. If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. Canceling these policies after only a few years can more than double your life insurance costs.

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HISTORY OF LIFE INSURANCE Risk protection has been a primary goal of humans and institutions throughout history. Protecting against risk is what insurance is all about. Over 5000 years ago, in China, insurance was seen as a preventative measure against piracy on the sea. Piracy, in fact, was so prevalent, that as a way of spreading the risk, a number of ships would carry a portion of another ship's cargo so that if one ship was captured, the entire shipment would not be lost. In another part of the world, nearly 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. Life insurance came about a little later in ancient Rome, where burial clubs were formed to cover the funeral expenses of its members, as well as help survivors monetarily. With Rome's fall, around 450 A.D., most of the concepts of insurance were abandoned, but aspects of it did continue through the Middle Ages, particularly with merchant and artisan guilds. These provided forms of member insurance covering risks like fire, flood, theft, disability, death, and even imprisonment. During the feudal period, early forms of insurance ebbed with the decline of travel and long-distance trade. But during the 14th to 16th centuries, transportation, commerce, and insurance would again reemerge. Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. And similar to ancient Rome, burial societies were formed in the Buddhist period to help families build houses, and to protect widows and children. Modern Insurance Illegal almost everywhere else in Europe, life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688. The type of insurance we see today owes its roots to 17th century England. Lloyd's of London, or as they were known then, Lloyd's Coffee House, was the location where merchants, ship owners and underwriters met to discuss and transact business deals. While serving as a means of risk-avoidance, life insurance also appealed strongly to the gambling instincts of England's burgeoning middle class. Gambling was so rampant, in fact, that when newspapers published names of prominent people who were seriously ill, bets were placed at Lloyds on their anticipated dates of death. Reacting against such practices, 79 merchant underwriters broke away in 1769 and

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two years later formed a New Lloyds Coffee House that became known as the real Lloyds. Making wagers on people's deaths ceased in 1774 when parliament forbade the practice. Insurance moves to America The U.S. insurance industry was built on the British model. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC. The Presbyterian Synod of Philadelphia in 1759, sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. And the first life insurance policy for the general public in the United States was issued, in Philadelphia, on May 22, 1761. But it wasn't until 80 years later (after 1840), that life insurance really tookoff in a big way. The key to its success was reducing the opposition from religious groups. In 1835, the infamous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations. With the creation of the automobile, public liability insurance, which first made its appearance in the 1880s, gained importance and acceptance? More advancement was made to insurance during the process of industrialization. In 1897, the British government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents. During the 19th century, many societies were founded to insure the life and health of their members, while fraternal orders provided low-cost, members only insurance. Even today, such fraternal orders continue to provide insurance coverage to members, as do most labor organizations. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies.

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BENEFITS OF LIFE INSURANCE 1) Risk cover: -Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of the future. 2) Tax Deduction: -Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to one lakh rupees. Life Insurance policies thus decrease the total taxable income of an individual. 3) Loans: -An individual can easily access loans from different financial institutions by pledging his insurance policies. 4) Retirement Planning: -What had provided protection against the financial consequences of premature death may now be used to help them enjoy their retirement years. Moreover the cash value can be used as an additional income in the old age. 5) Educational Needs: -Similar to retirement planning the cash values that flow from ones life insurance schemes can be utilized for educational needs of the insurer or his children.

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ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY The Life Insurance Industry has an enviable track record among public sector units. It has a Consistent profit and dividend paying record accompanied by a steady growth in its financial resources. Through investments in the Government sector and socially- oriented sectors the Industry has contributed immensely to the nation's development. The industry is recognized as one of the largest financial Institutions in the country. The ventures initiated by the industry in the areas of Mutual Fund, Housing Finance has done exceedingly well in recent years. To protect the country's foreign exchange reserves, the reinsurance arrangement are so organized that maximum retention is made possible within the country while at the same time protecting interests of the policy holders.

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ROLE OF IRDA
MISSION To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto

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 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.

28

Authority means the established under this Act. Interim Insurance Regulatory Authority means the Insurance Regulatory Authority set up by the Central Government through Resolution 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 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 (c) Whose sole purpose is to carry on life insurance business, general insurance business or re-insurance business?

CURRENT SCENERIO
2.1) CURRENT SCENERIO OF THE INSURANCE INDUSTRY
29

With largest number of life insurance policies in force in the world, insurance happens to be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs. 450 billion. Together with banking services, it adds about 7 per cent to the countrys GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investment are 8 per cent of GDP. Yet, nearly 80 percent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This it is an indicator that growth potential for the insurance sector is immense. A well-develop and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The insurance sector, to some extent, can enable investment in infrastructure development to sustain economic growth of the country. Insurance is a federal subject in India. There are two legislation that govern the sector - The Insurance Act-1938 and The IRDA Act-1999. In India, insurance is generally considered as a tax-saving device instead of its other implied long term financial benefits. Indian people are prone to investing in properties and gold followed by bank deposits. They selectively invest in shares also but the percentage is very small. Even to this day, Life Insurance Corporation of India dominates India insurance sector. With the entry of private sector players backed by foreign expertise, Indian insurance market has become more vibrant. Business is becoming increasingly vulnerable due to wide variety of risk particularly after September 11, 2001 disaster in which twin tower located in the hearts of New York city were crashed by terrorist attack resulting in loss of 6000 human lives as well as financial loss to the extent of $45 billion. The impact of this terrorist attack has created new horizon of risk to the business world today. However, rapid changes in the global economy, development of technology and e-business already gathered momentum. Increased dependency on technology has originated new risks that have resulted in well-published incidents. Computer hackers obtaining credit card information from visa and Power-Gen, the love bug virus, cyber extortion, web content liability, professional errors and omissions, computers and other crimes and activities such as terrorism, kidnapping and companys executive and extortion of money, commercial liability etc have significant impact on business resulting in extreme financial loss, commercial embarrassment or regulatory implications. Corporation insurance/risk managers, under the circumstances, have to demand increasingly complex insurance products. They have to be more attentive and knowledgeable about emerging risks, how those risks are managed effectively and efficiently, and how they could ultimately affect a companys financial situation and therefore its position in the market place. In short, how such risks are managed and can give to an insured a competitive advantage.

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In the changing times, adoption of e-commerce into business models, the integration of web-based communication and data transfer capabilities into the business operations, and leveraging of advanced network and technology architecture for maximum benefit are the new horizon of the risks. For the corporate insurance/risks managers, these new exposurecyber-risks-can lead to cyber losses, widening the interpretation of what constitute insure property damage, particularly as it relates to information technology and data. All the while, organizations are tremendous pressure to reduce expenses and increase profit margin, and cannot afford to suffer a property loss of business interruption due to any cause (risk). How a company identifies, quantifies, qualifies and manages these new risks exposure, in addition to the well-known tradition risks, is becoming an important factor in creating shareholders value. This often means changing the way. Everyone in the organization have to think about risk. Insurance managers are seeing price levels (premium) continue to rise-albeit modestly-in todays primarily commercial property and reinsurance markets. They are demanding that insurers improve their risk assessment and quantification offerings so that an insured may avail the benefit in cost (premium rate) on account of well-managed risk. The good news for insurance managers is that as the economy evolves, insurers are increasingly matching that evaluation with new products, services and capabilities due to opening up the insurance market to the private players. Insurers who are truly listening to their customers and striving to be more in tune with their needs are responding to the fast changing corporate insurance and risk management landscape. They are listening to their customers. They are making fresh approaches to address the new challenges faced by insured organization by designing the new products as per the needs. Insurers are providing value added services to insured to protect the value created by the business. Insurers are increasingly required to develop and expand their information technology platforms to ensure that the vast amount of data they collect about their customers. Insurance/risk portfolio can easily and seamlessly be transformed into valuable risk management information. To help their customers, insurers should make better-informed decisions. They must be able to swiftly deliver this data to their customers (insured) anywhere in the world. Insurer are also discovering that risk assessment have to be customized to meet policyholders new exposures and needs. The insurance industry is stepping up and addressing these challenges in several different ways.

2.2) CURRENT SCENARIO OF RELIANCE LIFE INSURANCE

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RLIC offers wide range of innovative life insurance products, targeted at individuals and groups. It offers need based products that caters to four distinct segments namely protection, child, retirement and investment plans. RLIC is committed to emerge as a transnational Life Insurer of global scale and standard.

Reliance Life Insurance Company Limited (RLIC) is amongst the fastest growing life insurance companies in India. It is also amongst the top four private sector life insurance companies in India. (As on FY 2008-2009) As on March 31, 2009, RLIC has an annualized premium of Rs. 30 billion with a market share of 10.3%. It has leapfrogged on the growth path and has reached the 4 million policy mark, in a short span of within 3 years. RLIC has a strong distribution network of 1,145 branches with more than 149,000 agents.

Insurances Market Share in Comparison of Other Private company

If we look at the status of Reliance Life Insurances market share in comparison of other private company in comparison of premium earned:-

32

If we talk the growth of Insurance industrys private players in recent years, the data will reflect:-

CH - 3) RESEARCH METHODOLOGY

RESEARCH DESIGN:-

33

COMPARITIVE STUDY- A comparative study has been undertaken to compare the traditional Plans of Reliance Life Insurance with that of Bajaj Allianz life insurance.

DATA TYPE
INTRODUCTION: - Any organization whether big or small, private or public needs different type of information to know its popularity. I have gathered secondary data and primary data and collected information from the combination of these two data. PRIMARY DATA: - Primary data collection method was decided for observing working of the company and approaching the customers directly face to face .A great care was taken while collecting the primary data to answer that it is relevant, accurate, current and unbiased. SECONDARY DATA: - Secondary data collection method was used by referring to various websites, books and newspapers for collecting information regarding the project under study. Secondary data consist of the information that already exists somewhere else for some another purpose.

SAMPLING TECHNIQUES:SAMPLE SIZE- A sample size of 50 was taken to be analyzed. SAMPLE LOCATION:-Various sectors of Kamla Nagar, Civil lines, Mukherji Nagar, Model Town and selected areas of Delhi. SAMPLING PROCESS: - Convenient sampling was used to overcome the time and money constraints that could have been faced by us while collecting the data. The customers were contacted face to face directly and also by way of telephonic conversation with them. ANALYTICAL TOOLS: - The data collected were arranged accordingly and statistical tools like bar graphs and pie-charts were used to analyze and present the data.

RESEARCH INSTRUMENT USED:SAMPLING MEDIA: - Printed questionnaires consisting several questions were asked to have an idea of customers view about Reliance Life Insurance plans followed by personal questions.

34

FIELD WORK: - Rigorous field work was undertaken to locate the interested and
potential respondents to fulfill the objectives of the study.

THE PRIMARY OBJECTIVEOF THE STUDY:The primary objective of the research study is to have a detailed analysis of Reliance Life Insurance bringing in focus the future prospects of the (Anil Dhirubhai Ambani group) with relevance to the customer perception regarding the various plans and products offered by Reliance Life Insurance.

3.1) DATA ANALYSIS AND INTERPRETATION

PERSONAL DETAILS 1) AGE: a) 18-30 35

b) 31-50 c) 51-65

AGE 18-30 31-50 51-65 TOTAL

NO. OF RESPONDENTS 21 19 10 50

PERCENTAGE 42% 38% 20% 100%

AGE WISE CLASSIFICATION

45 40 35 30 25 20 15 10 5 0

RES NO. PON OF DEN TS

42

38 20

18 to 30

31 to 50 AGE (in year)

51 to 65

INTERPRETATION:-The bar graph reveals that 42% of the respondents belong to the age group of 18-30 years, 38% lies in the age group of 31-50 years and 20% of them lie in the age group of 51-65 years.
2) OCCUPATION:

a) Service

36

b) Business c) Profession d) Housewife e) Retired OPTION Service Business Profession Housewife Retired TOTAL NO. OF RESPONDENTS 16 14 5 8 7 50 PERCENTAGE 32% 28% 10% 16% 14% 100%

OCCUPATION WISE CLASSIFICATION

35 30 25 20 15 10 5 0 Service Business Profession Housewife Retired 10 16 14 32 28

OCCUPATION

INTERPRETATION:-The above bar graph reveals that 32% of the total respondents were servicemen, 28% of them belonged to the business class, 10% were professionals, 16% were housewives and 14% of the total respondents fall in the retired category.

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3) INCOME:

a) 150000-300000 b) 300000-500000 c) Above 500000

OPTION 150000-300000 300000-500000 Above 500000 TOTAL

NO. OF RESPONDENTS 24 14 12 50

PERCENTAGE 48% 28% 24% 100%

INCOME WISE CLASSIFICATION 50 40 30 20 10 0

RE SP NO ON . DE OF NT S

48 28 24

150000- 300000- ABOVE 300000 500000 500000 INCOME (in RS.)

INTERPRETATION:-The above bar graph reveals that out of the total respondents 48% lie in the income group of 150000-300000, 28% of the total respondents belonged

38

to the income group of 300000-500000 and 24% lie in the income group of people earning an income of above Rs. 500000p.a.

4) FAMILY MEMBERS

a) b) c) d)

2 3 4 Above 4 OPTION 2 3 4 Above 4 TOTAL NO. OF RESPONDENT 11 9 24 6 50 PERCENTAGE 22% 18% 48% 12% 100%

MEMBER WISE CLASSIFICATION

50 40 30 20 10 0 No. of resp ond ents

48 22 2 18 3 4 12 Above 4

No. of family members

INTERPRETATION: The above bar graph shows that 22% of the total respondents had a family of 2 members, 18% of them had 3 family members, 48% of them had 4 family members, and 12% of them had the no. of family members above 4.

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Q1. Where do you prefer to invest? a) fixed deposits b) stock c) mutual funds d) insurance e) others Option Fixed deposits Stock Mutual fund Insurance others TOTAL No. of respondents 5 10 10 18 7 50 Percentage 10% 20% 20% 36% 14% 100%

14%

10% 20%
fixed deposits stocks mutual funds insurance others

36% 20%

40

Interpretation: The above pie chart shows that out of 50 respondents, 10% preferred to invest in fixed deposits, 20% in stocks, 20% in mutual funds, 36% in insurance and 14% in others like property, gold, etc.

Q2. What are your priorities for investment? a) protecting your family against pre-mature death b) wealth creation c) retirement needs d) child education and marriage e) protect income against disability, sickness or critical illness Option Protecting your family against pre mature death Wealth creation Retirement needs Child education and marriage Protect income against disability, sickness or critical illness TOTAL No. of respondents 10 14 5 7 14 50 Percentage 20% 28% 10% 14% 28% 100%

20% 28%
pre-mature death wealth creation retirement child future disablity

14% 10%

28%

41

Interpretation: The above pie chart shows that out of 50 respondents, 20% of them invest for protecting their family against premature death, 28% for creating wealth, 10% for meeting their future retirement needs, 14% for child education & marriage and 28% for protection against disability and sickness. Q3. What is your main motive behind investing in life insurance? a) tax benefit b) savings c) risk cover Option Tax benefits Savings Risk cover TOTAL No. of respondents 27 5 18 50 Percentage 54% 10% 36% 100%

36%
tax benefit savings risk cover

54%

10%

Interpretation: The above pie chart shows that out of the sample respondents, 54% have tax benefit 10% have savings and 36% have risk cover as their main motive for making an investment in life.

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Q4. What kind of investment do you prefer? a) high risk high gain b) low risk low gain c) moderate d) vary times to times Option High risk high gain Low risk low gain Moderate Vary times to times TOTAL No. of respondents 8 5 12 25 50 Percentage 16% 10% 24% 50% 100%

16%

10% 50%

high risk -high gain low risk- low gain moderate varied

24%

Interpretation: The above pie chart shows that out of 50 respondents, 16% preferred high risk- high gain form of investment 10% preferred low risk- low gain form of investment, 24% preferred moderate investment and 50% preferred varied form of investment.

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Q5.Are you interested to invest in Traditional Plans? a) YES b) NO Option YES NO TOTAL No. of respondents 36 14 50 Percentage 72% 28% 100%

28%

YES NO

72%

Interpretation: The above pie chart shows that 72% of the respondents preferred to invest in Traditional Plans.

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Q6. What is your level of annual investment? a) below 20000 b) 20000-40000 c) above 40000 Option Below 20000 20000-40000 Above 40000 TOTAL No. of respondents 41 7 2 50 Percentage 82% 14% 4% 100%

14%

4%

below 20 K 20K- 40K above 40 K

82%

Interpretation: The above pie chart shows that 82% of the respondents, are willing to invest below Rs 20,000 per annum, 14% of them want to invest within Rs 20,000 per annum to Rs 40,000 and 4% wanted to invest over and above Rs 40,000.

45

Q7. What factors would you consider most important before choosing an insurance policy? a) publicity of the company b) reputation of the company c) quality of life advisors d) after sales-supporting of the company Option Publicity of the co. Reputation of the co. Quality of life advisors After sale-services TOTAL No. of respondents 5 25 10 10 50 Percentage 20% 50% 10% 20% 100%

20%

20%
publicity

10%

reputation quality of advisors after sales support

50%
Interpretation: out of the sample respondents, 20% considers publicity of the company, 50% considers reputation of the company, 10% considers quality of life advisors, and 20% considers after sales support of the company as the most important factor for choosing an insurance company.

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Q8. Which life insurance company would you prefer the most to invest in? a) reliance life insurance (RLIC) b) Bajaj Allianz life insurance Option RLIC BAJAJ ALLIANZ TOTAL No. of respondents 21 29 50 Percentage 42% 58% 100%

42%
reliance bajaj allianz

58%

Interpretation: Out of 50 respondents, 42% preferred to invest in reliance life insurance over 58% of the respondents who prefer to invest in Bajaj Allianz life insurance.

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Q9. If reliance life insurance, then which particular plan you would like to invest in? a) Reliance Term Plan b) Reliance Whole Life Plan c) Reliance Endowment Plan d) Reliance Special Endowment Plan Option Reliance term plan Reliance whole life plan Reliance endowment plan Reliance special endowment plan TOTAL No. of respondents 6 3 9 3 21 Percentage 28.58% 14.28% 42.86% 14.28% 100%

14.28% 28.58% Termplan Whole life plan Endowm plan ent 42.86% 14.28% Special endowm plan ent

Interpretation: Out of 21 respondents, 28.58% preferred to invest in term plan, 14.28% in whole life plan, 42.86% in endowment plan and 14.28% of them preferred to invest in special endowment plan of reliance life insurance.

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Q10. If Bajaj Allianz life insurance, then which particular plan you would like to invest in? I. ENDOWMENT PLAN a) Bajaj Allianz Invest Gain b) Bajaj Allianz save Care Economy SP c) Bajaj Allianz life time care d) Bajaj Allianz Super Saver plan II. i. MONEY BACK PLAN Bajaj Allianz Cash Gain plan Option Invest gain plan Save care economy SP Life time care Super saver plan Cash gain plan TOTAL No. of respondents 3 6 7 3 10 29 Percentage 10.35% 20.69% 24.15% 10.35% 34.46% 100%

Interpretation: Out of 29 respondents, 10.35% of them plan to invest in Bajaj Allianz- Invest Gain, 20.69% wish to invest in Bajaj Allianz save Care Economy SP, 24.15% want to invest in Bajaj Allianz life time care, 10.35% in Bajaj Allianz Super Saver plan and 34.46% prefer to invest in Bajaj Allianz Cash Gain plan.

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3.2) SIGNIFICANCE OF STUDY

Life insurance is one of the most rapidly growing sectors in India. The main reason behind the growth can attributed to the high population density, improving economical condition, improving education level and improving awareness. Due to these factors there is still huge scope for growth in this sector. Like any other business when the opportunities are present everybody tends to enter the industries. This growth hence, fetches the new competitors as well as new strategies from existing players. To sustain in any competitive industry, the organization must adapt to existing strategies and adopt new ones. This study will focus on the analysis of Reliance Life Insurance in comparison with the present scenario of Bajaj Allianz Life Insurance with respect to the Traditional Plans of both the companys. This will mainly cover the following aspects: To know about the awareness and popularity of various Traditional Plans offered by Reliance Life Insurance and Bajaj Allianz Life Insurance. How Reliance Life Insurance can develop and sustain a good distribution network. These will provide it benefit both in terms of better market coverage as well as better penetration.

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3.3) SCOPE OF THE STUDY

1.) This helps in finding out vast potential of insurance company. 2.) The study was conducted in National Capital Region (NCR) only. 3.) The number of respondents to be surveyed can be improved. 4.) This study was conducted by comparing the performances & products of three private & government insurance players in insurance industry. 5.) This study was conducted to analyze the market stand of Reliance life insurance Company limited and Bajaj Allianz Life Insurance Company Limited of India insurance companies. 6.) This study is done to eliminate all the myths which people have in their minds regarding Insurance Sector.

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3.4) OBJECTIVES
To have a detailed understanding of Reliance Life Insurance and Bajaj Allianz Life Insurance. To find out various reasons considered while investing in policies. To get knowledge about the market exposure and future prospects about Reliance Life Insurance. To know the perception of the consumers about the life insurance. To analyze the Traditional plans of Reliance Life Insurance and compare it with Bajaj Allianz. To know about the brand awareness of Reliance Life Insurance, its customer preferences over Bajaj Allianz in the market. To study a proper knowledge about the life insurance industry. To understand the consumer choice while investing in policies.

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CHAPTER 4 DISCUSSION AND FINDINGS OF THE STUDY

FINDINGS OF THE STUDY RECOMMENDATION AND SUGGESTIONS CONCLUSION LIMITATIONS BIBLIOGRAPHY ANNEXURE:QUESTIONNAIRE

53

4.1) FINDINGS OF THE STUDY

1.) The survey reveals that still a large proportion of population is interested to invest in
other forms of investment other than insurance as still most of them are unaware about the importance of insurance in their life. 2.) Basically people make varied form of investment for creating wealth, to protect their families against pre-mature death and to protect income against disability, sickness or critical illness. 3.) The main motive of the individuals investing is receives benefits U/S 10/10D. People generally consider insurance as a tax saving device. 4.) Mostly people prefer time to time form of investment as they are not willing to take high degree of risk. 5.) 72% of the respondents are preferred to invest in Traditional Plans. 6.) Most of the people prefer to make an annual investment up to a maximum of Rs.20, 000 per annum. 7.) When the product is like life insurance, reputation of the company, publicity of the company & after sale services of the company matters a lot. This means that people would choose that insurance company only, where the quality of life advisors is satisfactory. 8.) Most people prefer to invest in Bajaj Allianz Life Insurance as compared to making an investment in Reliance Life Insurance. 9.) The most preferable Traditional plan of Reliance Life Insurance is Endowment Plan. 10.) The most preferable plan of Bajaj Allianz Life Insurance co. is Cash Gain Plan.

54

4.2) SUGGESTIONS & RECOMMENDATIONS

Based on the observations of the study some suggestions for the organization are made as follows: 1.) Quality of advisors is also as important as the quantity. Thus company should go mainly for qualified professionals. 2.) Company should increase its budget on publicity so that awareness can be increased. 3.) Clarity and transparency should be provided to the customer regarding various products. 4.) Training sessions should be planned in advance so that schedule can be provided to the advisor in advance. 5.) Apart from the Brand Positioning in urban area, a strategy should be adopted by Reliance to make its brand also near to middle level, or high aspirant people because they are the main source of the business in India 6.) Awareness Camp to the sub urban area should be focused by Reliance. 7.) Some innovative technique or product is required in order to attract the consumer.

4.3) LITERATURE REVIEW

55

1.) Robi Elenekave has explained in detail why various retirement plans and pension plans dont give the desired returns. The main difficulty is the use of incorrect method for calculations done to find out the return on investment. This is primarily due to wrong assumptions. The study provides information about the various precautions which need to be considered before planning so that the desired results can be achieved. 2.) Another paper provides insight about how various financial sectors invest in bond market. The study was how the different players investment different instruments according to the risk appetite and desired rate of return. The study shows that life insurance sector mainly invests in government bond which are low return and low risk instrument. The investment in government bond it shows that life insurance companies are more conservative in investment. 3.) K. Subhash has presented the history of Indias life insurance industry in three stages before independence, after independence and post liberalization which not only provides information but also help in analyzing the impact of these major changes. The authors have also discussed the huge potential which exists in the rural India. The insurance company must realize the importance of rural sector because the future lies there. The author commented about the increasing share of private player in the existing market. This confirms the availability of opportunity in this sector. The paper also provides the importance of professional and focused approach which was given no importance. 4.) Tapen Sinha has discussed the various challenges and opportunities in the insurance market. One of the very important factors which have been discussed in the study is the importance of developing new and better products. As the scenario changes the need of an individual also changes so any organization must understand and fulfill these needs. The new product development requires constant research so organization must also focus on it. 5.) Roger G. Ibbotson discusses how financial planners and advisors have recently started to recognize that human capital must be taken into account when building optimal portfolios for individual investors. Any investors human capital has a unique mortality risk. However, life insurance in its forms can hedge against this mortality risk. Thus, human capital affects both the optimal asset allocation and the optimal demand for life insurance. This paper provides a unified framework based on human capital in order to enable individual investors to make both decisions jointly. 6.) Rakesh Niraj study tells how the flow of information in any organization is important. For any organization to grow, the flow of information must be good both upwards as well as ownwards. The proper flow of information will also ensure proper flow of good and services from organization to customer and proper flow of information from customer to organization. The information from customers will help the organization in providing better goods and services to the customer. For the above purpose, organization must ensure good channel partner who can provide the organization with correct feedback. Hence it becomes very important for any organization to acquire good channel partners.

56

7.) Stephen P. Robbins has discussed how group dynamics works in any organization. The success of any organization depends on the success of its various teams and how these teams work together. The book provides various techniques which can be used by any organization to get result from the team effort. The conflict resolution is a major task in any group. Various techniques which the organization can use in conflict resolution are also discussed. Another important aspect covered is the importance of leadership in the organization. The various forms of leadership have been discussed and the kinds of leadership which can be effective in particular situations are also discussed. 8.) R. Wayne Mondy has discussed the importance of training and development in any organization. The training provides skills to perform the current job where as the development involve learning beyond present need. The various type of training are discussed which can be used according to the requirement. Training and development are not only important for better performance of an individual but it also gives satisfaction. The major factors which influence training and development are found to be management support, commitment of trainee and trainer, complexity of the organization. The process of developing good training plans is also provided. In another part author has discussed the importance of right man for right job. The compensation strategies are also given which are very crucial for ant industry. 9.) Philip Kotler has discussed the importance of channels partners. Better the channel partners better will be the delivery model. Detailed discussion about how to design the channel structure so that all the requirements could be fulfilled is provided. The various issues faced by the organization while managing the channels are also given. When an organization has more than one channel it becomes very important that all the channels should be integrated in such a way that the organization get the best out of all. At times due to the conflicting benefit of the different channels the conflict arise so various strategies to manage these issues is also discussed in the chapter. 10.) Michael J. Etzel has written about the marketing of services. The marketing of services is different from the goods because of the characteristic of service like intangibility, inseparability, heterogeneity etc. Brief about pricing strategies is also given in case of services. The authors have also given the impact of technological development on the services marketing. The author has also given the importance of brand and after sales support in case of services as perception of the customers plays an important role. In other part of the book the authors has described the importance of distribution channels and designing of the same. A channel partner should be consider as partner according to discussion. The legal complications associated with channels are also discussed. These complications are necessary to take into the consideration while managing the channels. The conflicting interest of channels both horizontally and vertically are also taken into the consideration.

57

11.) Boone has discussed about the importance of personal financial planning. The concept of time value of money has also been elaborated. The importance of creating and implementing budget is given under money management. The other important concepts for financial planning like credit management and understanding taxes are also explained. In one section the authors have discussed the importance of investment and what should be the major considerations while making any investment. The considerations include the risk associated with the investment, return on the investment etc. The importance and benefits of life insurance has also been given. The discussion also includes various legal aspects associated with life insurance. The overview of retirement planning is also given which includes importance and benefit of retirement planning. Various tools for proper retirement planning are also discussed.

4.4) CONCLUSION

58

1.) The customers are very much sensitive towards their investment. They would like to invest only in that insurance company which enjoys good public image along with quality good services 2.) The result of the survey conducted shows that Bajaj Allianz Life Insurance is the leader in life insurance industry but Reliance Life Insurance and other private players are giving it a close competition. 3.) The motive of the people behind investing in life insurance is the tax benefits that they would receive under sec 80C and 10/10D. 4.) In Life Insurance industry, the after sales support of the company is as important as the quality of life advisors.

4.5) LIMITATIONS

59

There were some limitations faced during the study as discussed below: Since the study was taken for two months, so there was a constraint of time and effort. The study was limited only to some of the Delhi regions so the results may be biased. Questionnaire was given to 125 people however only 50 responded to it, which is very small for such type of study. The biasness of consumer or responses error cannot be eliminated. Most of the people are not aware about the Importance and the necessity of insurance in their life. Adverse perception of the people towards insurance sector- People consider insurance as a tax saving device. Lack of awareness about the earning opportunity in the insurance sector.

4.6) BIBLIOGRAPHY
60

 www.reliancelifeinsurance.com www.adagroup.com www.irda.com www.bajajallianzlifeinsurance.com www.allianzbajaj.com

4.7) ANNEXURE
QUESTIONNAIRE

61

A comparative analysis of consumer perception regarding Traditional plans of Reliance Life Insurance with that of Bajaj Allianz Life Insurance. NAME: ___________________________ PERSONAL DETAILS 1) AGE:_________________

1) OCCUPATION:______________

2) INCOME:___________________

3) FAMILY MEMBERS:_________ Q1. Where do you prefer to invest? a) Fixed deposits

b) Stock c) Mutual funds d) Insurance

e) Others Q2. What are your priorities for investment? a) Protecting your family against pre-mature death
b) Wealth creation c) Retirement needs d) Child education and marriage e) Protect income against disability, sickness or critical illness

Q3. What is your main motive behind investing in life insurance? a) Tax benefit
b) Savings

62

c) Risk cover

Q4. What kind of investment do you prefer? a) High risk high gain
b) Low risk low gain c) Moderate d) Vary times to times

Q5.Are you interested to invest in Traditional Plans? a) Yes

b) No

Q6. What is your level of annual investment? a) below 20000

b) 20000-40000 c) above 40000

Q7. What factors would you consider most important before choosing an insurance company? a) publicity of the company
b) reputation of the company c) quality of life advisors d) after sales-supporting of the company

Q8. Which life insurance company would you prefer the most to invest in? a) Reliance life insurance
b) Bajaj Allianz life insurance

Q9. If reliance life insurance, then which particular plan you would like to invest in?
a) Reliance Term Plan b) Reliance Whole Life Plan c) Reliance Endowment Plan d) Reliance Special Endowment Plan

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Q10. If Bajaj Allianz life insurance, then which particular plan you would like to invest in? I. ENDOWMENT PLAN
a) Bajaj Allianz Invest Gain

b) Bajaj Allianz save Care Economy SP

c) Bajaj Allianz life time care d) Bajaj Allianz Super Saver plan II. MONEY BACK PLAN a) Bajaj Allianz Cash Gain plan

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