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Summer Training Project Report On

A Study On Customer Perception Towards insurance Plans of Reliance Life Insurance

or Reliance Life Insurance Co! Ltd! "el#i

Submitted for the partial fulfillment of the degree of

$aster of %usiness Administration


(2012-2014) Submitted By

Ra#ul &umar $aurya


$%A IIIrd sem Roll 'o! ()*pm+*,)Submitted To Dr. a!een "umar

Sc#ool Of $anagement .autam %udd#a /ni0rsity .rater 'oida .rater 'oida 1201#10

PR2 AC2

$a%ter% in Bu%ine%% &dmini%tration i% one of the mo%t reputed profe%%ional 'our%e% in the field of $anagement. Thi% 'our%e in'lude% both theory and appli'ation a% part of the t(o-year 'urri'ulum. &part from management edu'ation) the %tudent% of *$a%ter% in Bu%ine%% $anagement* ($B&) program are re+uired to go under a pra'ti'al training in the organi,ation of repute. Thi% %tudy i% an e-er'i%e of e-po%ing %tudent% to the mar.et (here they earn e-perien'e to ob%er!e the prin'iple% and 'on'ept% of mar.eting appli'able in the real mar.et %ituation. &fter 'ompletion of /%t year the %tudent% are re+uired to under go %ummer training 0or 4 (ee.%. /n thi% regard) / ha!e under gone my %ummer training at 1elian'e 2ife /n%uran'e3ompany. There / (a% gi!en thi% pro4e't 5& %tudy on 3u%tomer per'eption To(ard% /n%uran' 6lan Of 1elian'e 2ife /n%uran'e.7

AC&'O3L2".2$2'T

Ta.ing the pri!ilage to e-pre%% my inner of gratitude to. Sr. are%h "umar Bran'h $anager. $r. 1a4e%h .umar (bu%ine%% de!elopment $anger) 1elian'e 2ife /n%uran'e 3ompany D829/ for pro!iding me an opportunity to (or. under their %uper!i%ion in their profe%%ional managed organi,ation. /t i% their !aluable effort%) in%piration% and %ugge%tion%) (hi'h ha% helped me to a'+uire a great deal of 'onfiden'e and enri'h thi% type of 'ompli'ated .no(ledge. / (ould al%o li.e to e-pre%% to my attitude to(ard% 'a0een &uamr 4 aculty .uide5 pro!ided me time to time %ome u%eful tip% and !aluable %ugge%tion% to 'omplete thi% pro4e't report. 2a%t but not lea%t) my heart al%o feel% to than. and offer a grateful appre'iation to e!ery one (hom / 'ould not mention here but ha!e dire'tly or indire'tly %upported and helped me to fa'e thi% 'hallenging and 'omplete thi% pro4e't right in time.

Rahul Kumar Maurya

"2CLARATIO'

/) Ra#ul &umar $aurya)do de'lare that the Summer Tranning 6ro4e't 1eport entitled 5& Study On 'u%tomer 6er'eption To(ard% /n%uran'e 6lan% Of 1elian'e 2ife /n%uran'e7 being %ubmitted to the GAUTAM BUDDHA UNIVERSITY for partial fulfillment of the re+uired for the degree of $a%ter Of Bu%ine%% &dmini%tration i% my o(n endea!or% and ha% not been %ubmitted earlier to any in%titution:uni!er%ity for any degree.

Signature of 0a'ulty ;uide Dr. a!een "umar

Signature of Student 1ahul "umar $aurya

O%62CTI72S O

T82 ST/"9

1) To get %ome good mar.et e-po%ure by dealing (ith the pro%pe't% fa'e to fa'e. 2) To impro!e our ability to %ell a finan'ial produ't li.e life in%uran'e. #) To .no( the per'eption of the 'on%umer about life in%uran'e. 4) To get a deep .no(ledge of the finan'ial produ't li.e in%uran'e. <) To get %ome information about the mar.et %hare of 1elian'e 2ife /n%uran'e a% 'ompared to the giant% li.e 2/3 and to .no( the %tanding of the 'ompany in the mar.et.

<

CO'T2'TS
C#apter1( 4Introduction5 2ife /n%uran'e 9i%tory $eaning of /n%uran'e eed of in%uran'e Type% of /n%uran'e /mportan'e of /n%uran'e Differen'e bet(een /n%uran'e and &%%uran'e 6rin'iple% of /n%uran'e 9i%tory of /n%uran'e Time line in /n%uran'e hi%tory $eaning of 2ife /n%uran'e 9i%tory of 2ife /n%uran'e "ey feature% of 2ife /n%uran'e Benefit% of 2ife /n%uran'e 1ole of 2ife /n%uran'e in the gro(th of e'onomy C#apter1) 4Company O0er0iew5 1elian'e 2ife /n%uran'e 6rodu't $iOrgani,ation Stru'ture

>

C#apter1: 9uman re%our'e management 1e'ruitment ? training 3ompetitor of in%uran'e mar.et

C#apter1; Researc# $et#odology Sampling 6lan Data Sour'e% Data 3olle'tion /n%trument%

C#apter1< Summary of indings

S3OT Analysis Strength @ea.ne%% Opportunitie% Threat%

C#apter1= Conclusion C#apter 1%i+liograp#y

.lossary Anne>ure

$2A'I'. O I'S/RA'C2 /n%uran'e may be de%'ribed a% a %o'ial de!i'e to redu'e or eliminate ri%. of lo%% to life and property. /n%uran'e i% a 'olle'ti!e bearing of ri%.. /n%uran'e i% a finan'ial de!i'e to %pread the ri%.% and lo%%e% of fe( people among a large number of people) a% people prefer %mall fi-ed liability in%tead of big un'ertain and 'hanging liability. /n%uran'e 'an be defined a% a 5legal 'ontra't bet(een t(o partie% (hereby one party 'alled in%urer underta.e% to pay a fi-ed amount of money on the happening of a parti'ular e!ent) (hi'h may be 'ertain or un'ertain.7 The other party 'alled in%ured pay% in e-'hange a fi-ed %um .no(n a% premium. /n%uran'e i% de%ired to %afeguard one%elf and oneC% family again%t po%%ible lo%%e% on a''ount of ri%.% and peril%. /t pro!ide% finan'ial 'ompen%ation for the lo%%e% %uffered due to the happening of any unfore%een e!ent%.

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'22" O I'S/RA'C2

3#y "o I 'eed Life Insurance?


ThatD% a 'ommon +ue%tion. @hy (ould you need /n%uran'eE Simply put) 2ife bring% (ith it many %urpri%e%) %ome plea%ant and %ome not %o and a 2ife /n%uran'e 6lan en%ure% that you are better prepared to fa'e un'ertaintie%. 9o(E /n a number of (ay%F

Protection
Gou need life in%uran'e to be there and prote't the people you lo!e) ma.ing %ure that your family ha% a mean% to loo. after it%elf after you are gone. /t i% a thoughtful bu%ine%% 'on'ept de%igned to prote't the e'onomi' !alue of a human life for the benefit of tho%e finan'ially dependent on him. ThatD% a good rea%on. Suppo%ing you %uffer an in4ury that .eep% you from earningE @ould you li.e to be a finan'ial burden on your family) already lo%ing out on your %alaryE @ith a life in%uran'e poli'y) you are prote'ted. Gour family i% prote'ted.

Retirement
2ife in%uran'e fna.e% %ure that you ha!e regular in'ome after you retire and al%o help% you maintain your %tandard of li!ing. /t 'an en%ure that your po%t-retirement year% are %pent in pea'e and 'omfort.

11

Sa0ings and In0estments


/n%uran'e i% a mean% to Sa!e and /n!e%t. Gour periodi' premium% are li.e Sa!ing% and you are a%%ured of a lump %um amount on maturity. & poli'y 'an 'ome in really handy at the time of your 'hildD% edu'ation or marriageH Be%ide%) it 'an be u%ed a% %upplemental retirement in'omeH

Ta> %enefits
2ife in%uran'e i% one of the be%t ta- %a!ing option% today. Gour ta- 'an be %a!ed t(i'e on a life in%uran'e poli'y-on'e (hen you pay your premium% and on'e (hen you re'ei!e maturity benefit%. $oney %a!ed i% money earnedH

12

T9P2S O LI 2 I'S/RA'C2
2ife in%uran'e may be di!ided into t(o ba%i' 'la%%e% - temporary and permanent. Temporary Thi% type of in%uran'e i% 'hara'teri,ed by it% defined time period that i% named (hen the 'ontra't i% initially put into for'e. /n the 'a%e of &1T (&nnual 1ene(able Term)) thi% i% not the ra%e. Thi% i% due to the fa't that 'o!erage i% pro!ided for one year. Term Term life in%uran'e (Term &%%uran'e in Briti%h 8ngli%h) pro!ide% for life in%uran'e 'o!erage for a %pe'ified term of year% for a %pe'ified premium. The poli'y doe% not a''umulate 'a%h !alue. Term i% generally 'on%idered *pure* in%uran'e) (here the premium buy% prote'tion in the e!ent of death and nothing el%e. See Theory of De'rea%ing re%pon%ibility and Buy term and in!e%t the differen'e. The three .ey fa'tor% to be 'on%idered in term in%uran'e areF fa'e amount (prote'tion or death benefit)) premium to be paid ('o%t to the in%ured)) and length of 'o!erage (term). Various (US,) insurance companies sell term insurance with many different 'ombination% of the%e three parameter%. The fa'e amount 'an remain 'on%tant or de'line. The term 'an be for one or more year%. The premium 'an remain le!el or in'rea%e. & 'ommon type of term i% 'alled annual rene(able term. /t i% a one year poli'y but the in%uran'e 'ompany guarantee% it (ill i%%ue a poli'y of e+ual or le%%er amount (ithout regard to the in%urability of the in%ured and (ith a premium %et for the in%uredD% age at that time. &nother 'ommon type of term in%uran'e i% mortgage in%uran'e) (hi'h i% u%ually a le!el premium) de'lining fa'e !alue poli'y. The fa'e amount i% intended to e+ual the amount of the mortgage on the poli'y o(nerD% re%iden'e %o the mortgage (ill be paid if the in%ured die%. ;uaranteed rene( ability i% an important poli'y feature for any pro%pe'ti!e o(ner or in%ured to 'on%ider be'au%e it allo(% the in%ured to a'+uire life in%uran'e e!en if they be'ome unin%urable.

1#

Permanent
6ermanent life in%uran'e i% life in%uran'e that remain% in for'e until the poli'y mature% (pay% out)) unle%% the o(ner fail% to pay the premium (hen due (the poli'y e-pire%). The poli'y 'annot be 'an'elled by the in%urer for any rea%on e-'ept fraud in the appli'ation) and that 'an'ellation mu%t o''ur (ithin a period of time defined by la( (u%ually t(o year%). 6ermanent in%uran'e build% a 'a%h !alue that redu'e% the amount at ri%. to the in%uran'e 'ompany and thu% the in%uran'e e-pen%e o!er time. Thi% mean% that a poli'y (ith a million dollar% fa'e !alue 'an be relati!ely ine-pen%i!e to a >0 year old be'au%e the a'tual amount of in%uran'e pur'ha%ed i% mu'h le%% than one million dollar%. The o(ner 'an a''e%% the money in the 'a%h !alue by (ithdra(ing money) borro(ing the 'a%h !alue) or %urrendering the poli'y and re'ei!ing the %urrender !alue. The three ba%i' type% of permanent in%uran'e are w#ole life@ uni0ersal life@ and endowment!

3#ole
@hole life in%uran'e pro!ide% for a le!el premium) -and a 'a%h !alue table in'luded in the poli'y guaranteed by the 'ompany. The primary ad!antage% of (hole life are guaranteed death benefit%) guaranteed 'a%h !alue%) fi-ed and .no(n annual premium%) and mortality and e-pen%e 'harge% (ill not redu'e the 'a%h !alue %ho(n in the poli'y. The primary di%ad!antage% of (hole life are premium /nfle-ibility) and the internal rate of return in the poli'y may not be 'ompetiti!e (ith other %a!ing% alternati!e%. 1ider% are a!ailable that 'an allo( one to in'rea%e the death benefit by paying additional premium. The death benefit 'an al%o be in'rea%ed through the u%e of poli'y di!idend%. 6remium% are mu'h higher than term in%uran'e in the %hort-term) but 'umulati!e premium% are roughly e+ui!alent if poli'ie% are .ept in for'e until a!erage

14

life e-pe'tan'y. 3a%h !alue 'an be a''e%%ed at any time through poli'y *loan%*. Sin'e the%e loan% de'rea%e the death benefit if not paid ba'.) payba'. i% optional. 3a%h !alue% are not paid to the benefi'iary upon the death of the /n%uredI the benefi'iary re'ei!e% the death benefit only.

/ni0ersal
Jni!er%al lifeK in%uran'e (J2) i% a relati!ely ne( in%uran'e produ't intended to pro!ide permanent in%uran'e 'o!erage (ith greater fle-ibility in premium payment and the potential for a higher internal rate of return. & uni!er%al life poli'y in'lude% a 'a%h a''ount. 6remium% in'rea%e the 'a%h a''ount. /ntere%t i% paid (ithin the poli'y ('redited) on the a''ount at a rate %pe'ified by the 'ompany. Thi% rate ha% a g0aranteed minimum but u%ually i% higher than that minimum. $ortality 'harge% and admini%trati!e 'o%t% are 'harged again%t (redu'e) the 'a%h a''ount. The %urrender !alue of the poli'y i% the amount remaining in the 'a%h a''ount le%% appli'able %urrender 'harge%) if any. @ith all life in%uran'e) there are ba%i'ally t(o fun'tion% that ma.e it (or.. ThereD% a mortality fun'tion and a 'a%h fun'tion. The mortality fun'tion (ould be the 'la%%i'al notion of pooling ri%. (here the premium% paid by e!erybody el%e (ould 'o!er the death benefit for the one or t(o (ho (ill die for a gi!en period of time. The 'a%h fun'tion inherent in all life in%uran'e %ay% that if a per%on i% to rea'h age B< to 100 (the age !arie% depending on %tate and 'ompany)) then the poli'y mature% and endo(% the fa'e !alue -of the poli'y. aturally) itD% ea%y to %ee that out of a group of 1000 people) if e!en 10 of them li!e to age B<) then the mortality fun'tion alone (ill not be able to 'o!er the 'a%h fun'tion. So in 8order to 'o!er the 'a%h fun'tion) a minimum rate of in!e%tment returil on the premium% (ill be re+uired in the e!ent that a poli'y mature%. Jni!er%al life poli'ie% ba%i'ally guarantee you the death fun'tion) but not the 'a%h fun'tion - thu% the

1<

fle-ible premium% and intere%t return%. /f intere%t rate% are high) then the di!idend% help redu'e premium%. /f intere%t) rate% are lo() then the 'u%tomer (ould ha!e to pay additional premium% in order to .eep the poli'y in for'e. @hen intere%t rate% are abo!e the minimum re+uired) then the 'u%tomer ha% the fle-ibility to pay le%% a% in!e%tment return% 'o!er the remainder to .eep the poli'y in for'e. /ntere%tingly enough) J2D% are 'lo%ely lin.ed to relati!ely %table mar.et%) %u'h a% the # year trea%ury bill. @hatD% intere%ting i% not (hat J2D% 'lo%ely follo( - but due to ho( theyDre lin.ed) youDll noti'e that (hen people are happy about ho( little theyDre paying for life in%uran'e (ith a J2) theyDre at the %ame time 'omplaining about ho( e-pen%i!e their !ariable rate mortgage% are getting. The uni!er%al life poli'y addre%%e% the per'ei!ed di%ad!antage% of (hole life. 6remium% are fle-ible. The internal rate of return i% u%ually higher be'au%e it mo!e% (ith the finan'ial mar.et%. $ortality 'o%t% and admini%trati!e 'harge% are .no(n. &nd 'a%h !alue may be 'on%idered more ea%ily attainable be'au%e the o(ner 'an di%'ontinue premium% if the 'a%h !alue allo(% it. &nd uni!er%al life ha% a more fle-ible death benefit be'au%e the o(ner 'an %ele't one of t(o death benefit option%) Option & and Option B. Option & pay% the fa'e amount at death a% itD% de%igned to ha!e the 'a%h !alue e+ual the death benefit at age B<. Option B pay% the fa'e amount plu% the 'a%h !alue) a% itD% de%igned to in'rea%e the net death benefit a% 'a%h !alue% a''umulate. Option B doe% 'arry (ith /t a 'a!eat. Thi% 'a!eat i% that in order for the poli'y to .eep it% ta- fa!ored life in%uran'e %tatu%) it mu%t %tay (ithin a 'orridor %pe'ified by %tate and federal la(% that pre!ent abu%e% %u'h a% atta'hing a million dollar% in 'a%h !alue to a t(o dollar in%uran'e poli'y. The intere%ting part about thi% 'orridor i% that for tho%e people (ho 'an ma.e it to age B<-100) thi% 'orridor re+uirement goe% a(ay and your 'a%h !alue 'an e+ual e-a'tly the fa'e amount of in%uran'e. /f thi% 'orridor i% e!er !iolated) then the J2 (ill in be treated and

1=

in effe't turn into a $odified 8ndo(ment 3ontra't (or more 'ommonly referred to a% a $83). But uni!er%al life ha% it% o(n di%ad!antage% (hi'h %tem primarily from thi% fle-ibility. The poli'y la'.% the fundamental guarantee that the poli'y (ill be in for'e unle%% %uffi'ient premium% ha!e been paid and 'a%h !alue% are not guaranteed. Lariable uni!er%al life in%uran'e (LJ2) i% not the %ame a% Jni!er%al 2ife) e!en though they both ha!e 'a%h !alue% atta'hed to them. The%e differen'e% are in ho( the 'a%h a''ount% are managedI thu% ha!ing a great effe't on ho( they are treated for ta-ation.

Limited1pay
&nother type of permanent in%uran'e i% 2imited-Day life in%uran'e) in (hi'h all the premium% are paid o!er a %pe'ified period after (hi'h no additional premium% are due to .eep the poli'y in for'e. The mo%t 'ommon .ind of limited pay i% t(entyyear limited pay. &nother .ind i% paid-up (hen the in%ured i% %i-ty-fi!e.

1>

I$PORTA'C2 O I'S/RA'C2
/n%uran'e 'on%titute% one of the ma4or %egment% of the finan'ial mar.et. /n%uran'e %er!i'e% play predominant role in the pro'e%% of finan'ial intermediary. Today in%uran'e indu%try i% one of the mo%t gro(ing %e'tor% in /ndia. There i% lot of potential in the /ndian /n%uran'e /ndu%try. There are many i%%ue%) (hi'h re+uire %tudy. The %'ope of the %tudy of in%uran'e indu%try of /ndia (ould be !ery great a% there are ongoing de!elopment% in the indu%try after the opening of the %e'tor. The ma4or i%%ue right no( i% the hi.e in 0D/ (0oreign Dire't /n!e%tment) limit from 2=M to 4BM in the in%uran'e %e'tor. ;o!ernment may in near future allo( 4BM 0D/ in /n%uran'e. Thi% (ould lead to more 'apital inflo( by foreign partner%. &nother ma4or i%%ue i% the effe't% on 2/3 after the entry of pri!ate player% in the mar.et. Though mar.et %hare of 2/3 ha% been affe'ted) it ha% impro!ed in term% of effi'ien'y.

1A

There are number of other hot topi'% li.e penetration of 9ealth /n%uran'e) 1ural mar.eting of in%uran'e) ne( di%tribution 'hannel%) ne( produ't range%) in%uran'e bro.er%C regulation) in'enti!e %'heme of de!elopment offi'er% of 2/3 et'. So it offer% lot of %'ope for %tudying the in%uran'e indu%try. 1ight no( the in%uran'e indu%try ha% great opportunitie% in a 'ountry li.e /ndia or 3hina (hi'h huge population. &l%o the penetration of in%uran'e in

/ndia i% !ery lo( in both life and non-life %egment %o there i% lot potential to be tapped.

Before %tarting the di%'u%%ion on in%uran'e indu%try and related i%%ue%) (e ha!e to %tart (ith the ba%i'% of in%uran'e. So fir%t (e under%tand (hat i% in%uran'eE 9o( the (ordNin%uran'eC i% different from the (ord Na%%uran'eCEet'

"I

2R2'C2 %22T32' I'S/RA'C2 A'" ASS/RA'C2

&%%uran'e i% older in hi%tory and it (a% u%ed to de%'ribe all type% of in%uran'e%. 0rom 1A2=) the term a%%uran'e 'ame to be u%ed only for the ri%.% 'o!ered by life in%uran'e and the term in%uran'e (a% e-'lu%i!ely u%ed to denote the ri%.% 'o!ered by marine) fire) et'. The (ord a%%uran'e indi'ated 'ertainty. /n life in%uran'e) there i% an a%%uran'e from the in%uran'e 'ompany to ma.e payment under the poli'y either on the maturity or at earlier death. On the other hand the (ord in%uran'e (a% u%ed to denote indemnity type of in%uran'e% (here the in%uran'e 'ompany (a% liable to pay only in 'a%e of the lo%% damage the property.

1B

The in%ured e!ent (a% bound to happen %ooner or later under a%%uran'e but the e!ent in%ured again%t may or may not happen under in%uran'e The 'on'ept of in%uran'e i% belie!ed to ha!e emerged almo%t 4<00 year% ago in the an'ient land of Babylonia (here trader% u%ed to bear ri%. of the 'ar!an by gi!ing loan%) (hi'h (ere later repaid (ith intere%t (hen the good% arri!ed %afely.

8ISTOR9 O I'S/RA'C2
The 'on'ept of in%uran'e a% (e .no( today too. %hape in 1=AA at a pla'e 'alled 2loydC% 3offee 9ou%e in 2ondon (here ri%. bearer% u%ed to meet to tran%a't bu%ine%%. Thi% 'offee hou%e be'ame %o popular that 2loydC% be'ame the one of the fir%t modern in%uran'e 'ompanie% by the end of the eighteenth 'entury. $arine in%uran'e 'ompanie% 'ame into e-i%ten'e by the end of the eighteenth 'entury. The%e 'ompanie% (ere empo(ered to (rite fire and life in%uran'e a% (ell a% marine. The ;reat 0ire of 2ondon in 1B== 'au%ed huge lo%% of property and life. @ith a !ie( to pro!iding fire in%uran'e fa'ilitie%) Dr. i'hola% Barbon %et up in 1B=> the fir%t fire in%uran'e 'ompany .no(n a% the 0ire offi'e. The early hi%tory of in%uran'e in /ndia 'an be tra'ed ba'. to the Leda%. The San%.rit term NGoga.%hemaC (meaning (ell being)) the name of 2ife /n%uran'e 3orporation of /ndiaC%

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'orporate head+uarter%) i% found in the 1ig Leda. The &ryan% pra'ti'ed %ome form of N'ommunity in%uran'eC around 1000 B3. 2ife in%uran'e in it% modern form 'ame to /ndia from 8ngland in 1A1A. The Oriental 2ife /n%uran'e 3ompany (a% the fir%t in%uran'e 'ompany to be %et up in /ndia to help the (ido(% of 8uropean 'ommunity. The in%uran'e

TI$2 LI'2 I' I'S/RA'C2 8ISTOR9


(A(A Briti%e introdu'e the in%u ran'e of the india (ith the e%tabli%hment of the Oriental 2ife /n%uran'e 3ompany in 3al'utta. (A<, on life in%uran'e %tarted (ith Triton /n%uran'e 3ompany. (A-, Bombay $utual 2ife &%%uran'e So'iety i% the fir%t /ndia o(ned life in%urer. (B() The /ndian 2ife &%%uran'e 3ompany &'t ena'ted to regulate the life in%uran'e bu%ine%%. (B:A The /n%uran'e &'t (a% ena'ted.

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(B<= ationali,ation too. pla'e. ;o!ernment too. o!er 24< /ndian and foreign in%urer% and pro!ident %o'ietie%. (B-) on-life bu%ine%% nationali,ed) ;eneral /n%uran'e 3orporation(;/3) 'ame into being. (BB: $alhotra 'ommittee (a% 'on%tituted under the 'hairman%hip of former 1B/ 'hief 1. . $alhotra to dra( a blue print for in%uran'e %e'tor reform%. (BB; $alhotra 'ommittee re'ommended reentry of pri!ate 6layer%

(BB/1D& (/n%uran'e 1egulatory and De!elopment &uthority) (a% %et up a% a regulator of the in%uran'e mar.et in /ndia. ),,, /1D& %tarted gi!ing li'en%e to pri!ate in%urer%. /3/3/ 6rudential)9D03 (ere fir%t pri!ate player% to %ell in%uran'e 6oli'ie%. ),,( 1oyal Sundaram (a% the fir%t non-life pri!ate player to %ell an in%uran'e poli'y. ),,) Ban. allo(ed to %ell in%uran'e plan% a% T6&% enter the %'ene) in%urer% %tart %etting non-life 'laim% in the 'a%hle%% mode

22

$2A'I'. O LI 2 I'S/RA'C2
There are three partie% in a life in%uran'e tran%a'tionF the in%urer) the in%ured) and the o(ner of the poli'y (poli'yholder)) although the o(ner and the in%ured are often %ame per%on. &nother important per%on in!ol!ed in a life in%uran'e poli'y i% the benefi'iary. The benefi'iary i% the per%on or per%on% (ho (ill re'ei!e the poli'y pro'eed% upon the death of the in%ured.

2ife in%uran'e may be di!ided into t(o ba%i' 'la%%e% O term and permanent. Term life in%uran'e pro!ide% for life in%uran'e 'o!erage for a %pe'ified term of year% for a %pe'ified premium. The poli'y doe% not a''umulate 'a%h !alue.

6ermanent life in%uran'e i% life in%uran'e that remain% in for'e until the poli'y mature%) unle%% the o(ner fail% to pay the premium (hen due.

2#

@hole life in%uran'e pro!ide% for a le!el premium) and a 'a%h !alue table in'luded in the poli'y guaranteed by the 'ompany. The primary ad!antage% of (hole life are guaranteed death benefit%) guaranteed 'a%h !alue%) fi-ed and .no(n annual premium%) and mortality and e-pen%e 'harge% (ill not redu'e the 'a%h !alue %ho(n in the poli'y. Jni!er%al life in%uran'e (J2) i% a relati!ely ne( in%uran'e produ't intended to pro!ide permanent in%uran'e 'o!erage (ith greater fle-ibility in premium payment and the potential for a higher internal rate of return. & uni!er%al life poli'y in'lude% a 'a%h a''ount. 6remium% in'rea%e the 'a%h a''ount.

/f you (ant in%uran'e prote'tion only) and not a %a!ing% and in!e%tment produ't) buy a term life in%uran'e poli'y 2ife in%uran'e 'ame about a little later in an'ient 1ome) (here burial 'lub% (ere formed to 'o!er the funeral e-pen%e% of it% member%) a% (ell a% help %ur!i!or% monetarily. @ith 1omeD% fall) around 4<0 &.D.) mo%t of the 'on'ept% of in%uran'e (ere abandoned) but a%pe't% of it did 'ontinue through the $iddle &ge%) parti'ularly (ith mer'hant and arti%an guild%. The%e pro!ided form% of member in%uran'e 'o!ering ri%.% li.e fire) flood) theft) di%ability) death) and e!en impri%onment.

During the feudal period) early form% of in%uran'e ebbed (ith the de'line of tra!el and long-di%tan'e trade. But during the 14th to 1=th 'enturie%) tran%portation) 'ommer'e) and in%uran'e (ould again reemerge.

24

/n%uran'e in /ndia 'an be tra'ed ba'. to the Leda%. 0or in%tan'e) yoga.%hema) the name of 2ife /n%uran'e 3orporation of /ndiaD% 'orporate head+uarter%) i% deri!ed from the 1ig Leda. The term %ugge%t% that a form of *'ommunity in%uran'e* (a% pre!alent around 1000 B3 and pra'ti'ed by the &ryan%. .

$odern Insurance C
/llegal almo%t e!ery(here el%e in 8urope) life in%uran'e in 8ngland (a% !igorou%ly promoted in the three de'ade% follo(ing the ;loriou% 1e!olution of 1=AA. The type of in%uran'e (e %ee today o(e% itD% root% to 1>th 'entury 8ngland. 2loydD% of 2ondon) or a% they (ere .no(n then) 2loydD% 3offee 9ou%e) (a% the lo'ation (here mer'hant%) %hip o(ner% and under(riter% met to di%'u%% and tran%a't bu%ine%% deal%. @hile %er!ing a% a mean% of ri%.-a!oidan'e) life in%uran'e al%o appealed %trongly to the gambling in%tin't% of 8nglandD% burgeoning middle 'la%%. ;ambling (a% %o rampant) in fa't) that (hen ne(%paper% publi%hed name% of prominent people (ho (ere %eriou%ly ill) bet% (ere pla'ed at 2loydC% on their anti'ipated date% of death. 1ea'ting again%t %u'h pra'ti'e%) >B mer'hant under(riter% bro.e a(ay in 1>=B and t(o year% later formed a 5 e( 2loydC% 3offee 9ou%e7 that be'ame .no(n a% the 5real 2loydC%.7 $a.ing (ager% on peopleD% death% 'ea%ed in

2<

1>>4 (hen parliament forbade the pra'ti'e.

Insurance mo0es to America C


The J.S. in%uran'e indu%try (a% built on the Briti%h model. The year 1>#< %a( the birth of the fir%t in%uran'e 'ompany in the &meri'an 'olonie% in 3harle%ton) S3. The 6re%byterian Synod of 6hiladelphia in 1><B) %pon%ored the fir%t life in%uran'e 'orporation in &meri'a for the benefit of mini%ter% and their dependent%. &nd the fir%t life in%uran'e poli'y for the general publi' in the Jnited State% (a% i%%ued) in 6hiladelphia) on $ay 22) 1>=1. But it (a%nDt until A0 year% later (after 1A40)) that life in%uran'e really too. off in a big (ay. The .ey to it% %u''e%% (a% redu'ing the oppo%ition from religiou% group%. /n 1A#<) the infamou% e( Gor. fire dre( peopleD% attention to the need to pro!ide for %udden and large lo%%e%. T(o year% later) $a%%a'hu%ett% be'ame the fir%t %tate to re+uire 'ompanie% by la( to maintain %u'h re%er!e%. The

2=

indu%trial nation) the in%uran'e bu%ine%% de!eloped from a %mall number of 'ompanie% to a large indu%try. /n%uran'e be'ame more %ophi%ti'ated) offering ne( type% of 'o!erage and di!er%ified %er!i'e% for an in'rea%ingly 'omple- 'ountry.

&29 2AT/R2S O LI 2 I'S/RA'C2


1) 'ominationC 1 @hen one ma.e% a nomination) a% the poli'yholder you 'ontinue to be the o(ner of the poli'y and the nominee doe% not ha!e any right under the poli'y %o long a% you are ali!e. The nominee ha% only the right to re'ei!e the poli'y monie% in 'a%e of your death (ithin the term of the poli'y. )5 AssignmentC 1 /f your intention i% that your poli'y monie% %hould go only to a parti'ular per%on) you need to a%%ign the poli'y in fa!or of that per%on. :5 "eat# %enefitC 1 The primary feature of a life in%uran'e poli'y i% the death benefit it pro!ide%. 6ermanent poli'ie% pro!ide a death benefit that i% guaranteed for the life of the in%ured) pro!ided the

2>

premium% ha!e been paid and the poli'y ha% not been %urrendered. ;5 Cas# 7alueC 1 The 'a%h !alue of a permanent life in%uran'e poli'y i% a''umulated throughout the life of the poli'y. /t e+ual% the amount a poli'y o(ner (ould re'ei!e) after any appli'able %urrender 'harge%) if the poli'y (ere %urrendered before the in%uredD% death. <5 "i0idendsC $any life in%uran'e 'ompanie% i%%ue life in%uran'e poli'ie% that entitle the poli'y o(ner to %hare in the 'ompanyD% di!i%ible %urplu%.

=5 Paid1/p AdditionsC 1 Di!idend% paid to a poli'y o(ner of a parti'ipating poli'y 'an be u%ed in numerou% (ay%) one of (hi'h i% to(ard the pur'ha%e of additional 'o!erage) 'alled paid-up addition%.

-5 Policy LoansC 1 Some life in%uran'e poli'ie% allo( a poli'y o(ner to apply for a loan again%t the !alue of their poli'y. 8ither a fi-ed or !ariable rate of intere%t i% 'harged. Thi% feature allo(% the poli'y o(ner an ea%ily a''e%%ible loan in time% of need or opportunity.

A5 Con0ersion from Term to PermanentC 1 @hen in need of temporary prote'tion) indi!idual% often pur'ha%e term life in%uran'e. /f one o(n% a term poli'y) %ometime% a pro!i%ion i% a!ailable that (ill allo( her to 'on!ert her

2A

poli'y to a permanent one (ithout pro!iding additional proof of in%urability.

B5 "isa+ility 3ai0er of Premium


@ai!er of 6remium i% an option or benefit that 'an be atta'hed to a life in%uran'e poli'y at an additional 'o%t. /t guarantee% that 'o!erage (ill %tay in for'e and 'ontinue to gro(

%2'2 ITS O LI 2 I'S/RA'C2


(5 RisD co0erC 1 2ife /n%uran'e 'ontra't% allo( an indi!idual to ha!e a ri%. 'o!er again%t any unfortunate e!ent of the future. )5 Ta> "eductionC 1 Jnder %e'tion A03 of the /n'ome Ta- &'t of 1B=1 one 'an get ta- dedu'tion on premium% up to one la.h rupee%. 2ife /n%uran'e poli'ie% thu% de'rea%e the total ta-able in'ome of an indi!idual. 2oan%F &n indi!idual 'an ea%ily a''e%% loan% from different finan'ial in%titution% by pledging hi% in%uran'e poli'ie%.
2B

;5 Retirement PlanningC @hat had pro!ided prote'tion again%t the finan'ial 'on%e+uen'e% of premature death may no( be u%ed to help them en4oy their retirement year%. $oreo!er the 'a%h !alue 'an be u%ed a% an additional in'ome in the old age.

<5 2ducational 'eedsC 1 Similar to retirement planning the 'a%h !alue% that flo( from one% life in%uran'e %'heme% 'an be utili,ed for edu'ational need% of the in%urer or hi% 'hildren.

ROL2 O LI 2 I'S/RA'C2 I' T82 .RO3T8 O T82 2CO'O$9


The 2ife /n%uran'e /ndu%try ha% an en!iable tra'. re'ord among publi' %e'tor unit%. /t ha% a 3on%i%tent profit and di!idend paying re'ord a''ompanied by a %teady gro(th in it% finan'ial re%our'e%. Through in!e%tment% in the ;o!ernment %e'tor and %o'ially- oriented %e'tor% the /ndu%try ha% 'ontributed immen%ely to the nationD% de!elopment. The indu%try i% re'ogni,ed a% one of the large%t finan'ial /n%titution% in the 'ountry. The !enture% initiated by the indu%try in the area% of $utual 0und)

#0

9ou%ing 0inan'e ha% done e-'eedingly (ell in re'ent year%. To prote't the 'ountryD% foreign e-'hange re%er!e%) the rein%uran'e arrangement are %o organi,ed that ma-imum retention i% made po%%ible (ithin the 'ountry (hile at the %ame time prote'ting intere%t% of the poli'y holder%.

C8APT2R1) 4CO$PA'9 O72R7I235

I'TRO"/CTIO' TO T82 CO$PA'9 ABOUT RELIANCE LIFE INSURANCE 1elian'e 2ife /n%uran'e 3ompany 2imited i% a part of 1elian'e 3apital 2td. of the 1elian'e Anil "#iru+#ai Am+ani .roup. 1elian'e 3apital i% one of /ndiaC% leading pri!ate %e'tor finan'ial %er!i'e% 'ompanie%) and ran.% among the top # pri!ate %e'tor finan'ial %er!i'e% and ban.ing 'ompanie%) in term% of net (orth in%uran'e) proprietary in!e%tment%) pri!ate e+uity and other a'ti!itie% in finan'ial %er!i'e%.

#1

1elian'e 3apital 2imited (132) i% a on-Ban.ing 0inan'ial 3ompany ( B03) regi%tered (ith the 1e%er!e Ban. of /ndia under %e'tion 4<-/& of the 1e%er!e Ban. of /ndia &'t) 1B#4. 1elian'e 3apital %ee% immen%e potential in the rapidly gro(ing finan'ial %er!i'e% %e'tor in /ndia and aim% to be'ome a dominant player in thi% indu%try and offer fully integrated finan'ial %er!i'e%. 1elian'e 2ife /n%uran'e i% another %tep% for(ard for 1elian'e 3apital 2imited to offer need ba%ed 2ife /n%uran'e %olution% to indi!idual% and 3orporate.

8ISTOR9 O T82 CO$PA'9


1elian'e 3apital 2imited announ'ed the laun'h of it% life in%uran'e bu%ine%% on 0ebruary 1) 200=. Thi% (a% after obtaining the re+uired regulatory appro!al% from the 1egi%trar Of 3ompanie% and the /n%uran'e 1egulatory and De!elopment &uthority. /t (a% in &ugu%t 200< that the ball (a% %et rolling (hen 1elian'e 3apital 2imited) the finan'ial arm of 1elian'e O &nil Dhirubhai &mbani ;roup (&D&;) O announ'ed the re+ui%ition of 100M %hareholding in &$6 Sanmar 2ife /n%uran'e 3ompany 2imitedI and the formal tran%fer of %hare% too. pla'e in O'tober 200<. The 'ompany (ill i%%ue all poli'y 'ontra't% under the 1elian'e 2ife /n%uran'e 3ompany limited name. &ll the e-i%ting poli'y 'ontra't% al%o %tand tran%ferred to the 1elian'e 2ife /n%uran'e entity (ith all the original
#2

'ontra'tual term% and 'ommitment% inta't. 6O/R'29 SO AR ),,< AugustC &nil Dhirubhai &mbani ;roup (&D&;) announ'e% the a'+ui%ition of 100 per'ent %hareholding in &$6 Sanmar 2ife /n%uran'e 3o 2td. ),,= 6anuary (-F $r. andgopal parti'ipate% in a one-day 'onferen'e on NOptimi%ing gro(th opportunitie% through Di%tribution $atri-F N8merging Ban'a%%uran'eC organi,ed by the &%ia /n%uran'e 6o%t at the Ta4 6re%ident) $umbai. e+ruary (C 1lian'e 2ife /n%uran'e offi'ially laun'hed.

e+ruary (=@ (-@ (AC Strategy meet at the 1elian'e $anagement /n%titute. &mong%t tho%e (ho parti'ipate are the 38O) 3OO) 0un'tional 9ead%) 1egional $anager% and 1egional Sale% $anager%. e+ruary )= F& 6u4a held at the 3hur'hgate offi'e %ituated in 8-pre%% Building) 4th 0loor) 14 N8C 1oad) $umbai. $arc# (C 3hur'hgate offi'e inaugurated by $r. &mitabh

##

Phun4hun(ala) $r. &mitabh 3hatur!edi and $r. andgopal. $arc# =C Shifting to the ne( premi%e% at 3hur'hgate 'ommen'e%. $arc# -C The ne( offi'e at 3hennai) at the Trape,ium) 0ir%t 0loor) Q #B) el%on $ani'.am 1oad) inaugurated by their 38O $r. andgopal) $r. "L Srini!a%an and $r. Sure%hbabu al%o gra'ed the o''a%ion.

ROL2 O IT AT R2LIA'C2 LI 2 I'S/RA'C2


(5 3orld Class "ata CentreC 1 They plan to e%tabli%h a 6rimary Data 3entre at a!i $umbai (Dhirubhai &mbani "no(ledge 3ity) (hi'h (ill 'ater to their 'ompany need% a'ro%% /ndia) (ith fail-o!er 'apability to their 3hennai Data 3entre (ithin the %ame bu%ine%% day in o''uran'e if an in'ident or Di%a%ter happen%. )5 Inter Office Connecti0ityC 1

#4

&ll their Bran'h : &rea and 1egional offi'e% (ill be inter'onne'ted to their Data 3entre (ith a 24-> a''e%% to 3ore &ppli'ation% li.e 2otu% $ail) 2ife-&%ia and /nternet &ppli'ation%. Thi% (ill enable their a%%o'iate% to (or. fa%ter and better (ith high-%peed /nternet 'onne'ti!ity and al%o en%ure fa%ter Turn &round Time for their 'u%tomer%. :5 Customer Care CentreC 1 They (ill ho%t a 'entrali,ed 3u%tomer 3are 3entre at Dhirubhai &mbani "no(ledge 3ity at a!i $umbai) (hi'h 'ater %er!i'e% to internal and e-ternal +uerie% and 'ompli'ation%. & 'u%tomer 1elation%hip $anagement Tool (31$) and 2ead $anagement Sy%tem (2$S) are in progre%%.

;5 3e+ PortalC 1 Thi% portal (ill be an interfa'e bet(een both internal employee% and their e-ternal u%er%. Some of the fun'tion% in'luded in their portal are 6oli'y Tra'.ing Sy%tem%) 3orporate e(%) Ruality 3he'.ing Sy%tem) Jnder @riting $edi'al Sy%tem) and &gent $anagement Sy%tem et'.

<5 R 3orldC 1 1elian'e $obile 1-@orld (ill pro!ide online information about their 3ompany) 6rodu't%) and 6oli'y Ser!i'e% to their e-i%ting 'u%tomer%) &gent%:&d!i%or% and 2ead ;enerator%. =5 S$S AlertsC S$S &lert% (ill be pro!ided to their Sale% $anager% about the late%t happening% li.e 3onte%t%

#<

and 3ampaign%) 8mployee &lert% (ill in'lude 3ompany e(% and @el'ome:Birthday:&nni!er%ary me%%age et'. 3u%tomer &lert% (ill in'lude @el'ome:Birthday:&nni!er%ary me%%age) 6oli'y Di%pat'h Detail%) 6oli'y Ser!i'ing S$S li.e 6remium 1e'eipt and 1ene(al 6remium reminder% et'. -5 Life and .roup AsiaC 1 Single 2ife and ;roup 2ife detail% (ill be 'aptured and managed by 2ife and ;roup &%ia. & 'ommon middle(are bet(een the%e appli'ation% (ill enable ;roup 2ife 3u%tomer% to !ie( their indi!idual Single 2ife /n%uran'e 6lan detail% ta.en (ith 1elian'e 2ife /n%uran'e and !i'e !er%a.

A5 Ad0isor LoungeC 1 /t i% a dedi'ated area for 1elian'e 2ife /n%uran'e &gent%:&d!i%or% in all the bran'he% a'ro%% /ndia. Thi% 2ounge (ill be e+uipped (ith de%.top% and printer% (ith /nternet 'onne'ti!ity) (here their &d!i%or% 'an bring in the pro%pe't% and 'an ha!e di%'u%%ion% a'ro%% the table and they 'an 'reate and print +uote%. The &gent%:&d!i%or% 'an u%e thi% area to %er!i'e their e-i%ting 'u%tomer%.

B5 "ocument $anagement SystemC D$S (ill enable both poli'y i%%uan'e and 'ontra't %er!i'ing through an automated (or.flo() (hi'h yield% a fa%ter Turn around Time to both internal and e-ternal u%er%. Thi% appli'ation

#=

(ill enable them to ha!e a paperle%% offi'e and thu% mitigate the ri%. of lo%ing !ital re'ord%:paper%. (,5 3ireless "ata AccessC 1 Thi% (ill enable identified Top Sale% $anager% and Top &d!i%or% to a''e%% real time data for both 2$S and 31$ on the fly through 9andheld 6D& de!i'e. ((5 SAP E 2RP $odulesC 1

S&6 (0inan'e and 91 $odule%)) (ill automate the 8-pen%e) Tra!el and 2ea!e $anagement Sy%tem%.

$ISSIO'F COR2 7AL/2S

$ISSIO'
#>

The mi%%ion of 1elian'e 2ife /n%uran'e 3ompany 2imited i% to be the be%t in e!ery %pherebu%ine%% re%ult%) 'u%tomer 'are and employee fo'u%. The aim of the 'ompany i% to Thin. Bigger and Thin. Better. COR2 7AL/2S 1elian'e 2ife /n%uran'e 3ompany 2imited ha% %ome 'ore !alue% (hi'h are li%ted a% follo(%F

1e%ult Oriented 6erforman'e Dri!en 3u%tomer 0o'u%ed 2earning and De!elopment Oriented 8mployee 3entri' /nformal and 0un

/T/R2 PLA'S
0orty-four ne( bran'he% to be opened a'ro%% the 'ountry in the 'oming month%I and a pan /ndia pre%en'e (ith 1=2 bran'he% in the 'oming year.

#A

& %tate-of-the-art 'u%tomer 'are 'entre (ill pro!ide 'ontinuou%) re%pon%i!e %er!i'e% to the 'aller and promptly addre%% +uerie%) 'ollate feedba'. and %ugge%tion% from the 'aller) (ho may be both pro%pe'ti!e and e-i%ting 'lientele and from 'hannel partner% in 3hennai and $umbai. /t (ill be laun'hing additional produ't% aimed at pro!iding unparalleled %er!i'e to it% !alued 'lientele.

82A" E O

IC2

Relian e Li!e In"uran e C#m$any Limi%e&' The Tra$e(ium' )*' Fir"% Fl##r' Nel"#n Mani +am R#a&' Chennai , -.. ./*0

#B

C8APT2R E: PRO"/CT $IG TRA"ITIO'AL PLA'C1


2ife in%uran'e produ't% are de%igned to %uit the re+uirement% of 'u%tomer%. 0undamentally the produ't pro!ide forF

1i%. 'over /n!e%tment 9ealth 'o!er


1elian'e 2ife /n%uran'e 3ompany 2imited ha% offered B traditional plan% to the 'u%tomer%) (hi'h are li%ted a% follo(%F 8a'h of the abo!e traditional plan% i% di%'u%%ed a% follo(%F (5 Reliance Term planC 1 there i% no %a!ing element or bonu% pro!i%ion) the premium i% !ery lo(. 9en'e) thi% i% a high-ri%. plan (ith a lo( premium.

)5 Reliance 3#ole Life PlanC :5 Reliance C#ild PlanC 1 Thi% money i% payable in e+ual in%tallment% o!er the la%t 4 year% of the poli'y term. $inimum entry age i% 20 year and ma-imum =0 year $inimum %um a%%ured i% 1%. 2<)000. $inimum premium paying term i% < year and ma-imum 20 year Ta- benefit i% a!ailable $aturity amount S 0our e+ual in%tallment of %um in%ured /n la%t four year plu% !e%ted bonu% in the la%t year

2oan fa'ility i% a!ailable

40

;5 Reliance 2ndowment PlanC 1

eaturesC 1 8ntry age minimum i% < year and ma-imum =< year $aturity age minimum i% 1A year and ma-imum >< year

$inimum premium paying term i% < year and ma-imum #< year in 'a%e of regular and in 'a%e of %ingle 1< year

$inimum %um a%%ured i% 1%. 2<)000 or a% determined by the minimum premium $a-imum %um a%%ured i% 1%. <)00)000 (entry age belo( 1A year% and no limit for entry age 1A and abo!e) 6remium mode annual) half yearly) +uarterly and monthly (by %alary dedu'tion only) 2oan up to B0M of the %urrender !alue of the poli'y $aturity amount S ;uaranteed %um a%%ured T 1e!er%ionary bonu%

41

<5 Reliance Special 2ndowment PlanC 1


Thi% plan al%o parti'ipate% in the profit%.

eaturesC 1

Jni+ue feature of thi% poli'y i% that fi!e year life prote'tion. $aturity amount S 0ull %um a%%ured before maturity date T . Le%ted bonu% at the time of maturity date .

=5 Reliance Cas# low PlanC 1


The money i% payable in in%tallment%. The fir%t in%tallment i% paid at the end of the 4th year and thereafter at the end of e!ery #rd year.

eaturesC1
6lan (ith profit% $inimum entry age i% 1< year and ma-imum i% =# year

$a-imum premium paying term i% #4 year 2oan fa'ility i% not a!ailable /n 'a%e of death full %um a%%ured T a''rued bonu%e% up to

-5 Reliance Credit .uardian PlanC 1


42

eaturesC 1
2oan prote'tion again%t home) home impro!ement) t(o 6remium paying term i% 2:# of loan period and remaining period paid by the 'ompany

A5 Reliance Special Credit .uardian PlanC 1

eaturesC 1 2oan prote'tion again%t home) home impro!ement) t(o 6remium payment term i% 2:# of loan period and remaining

/'IT LI'&2" PLA'


& unit-lin.ed poli'y i% a life a%%uran'e poli'y in (hi'h the benefit% depend on the performan'e of a portfolio of %hare%.

1elian'e 2ife /n%uran'e 3ompany 2imited ha% al%o offered the t(o Jnit 2in.ed 6lan%) (hi'h are li%ted a% follo(%F (5 Reliance $arDet Return Plan )5 Reliance .olden 9ears Plan

(5 Reliance $arDet Return PlanC 1


1elian'e $ar.et 1eturn 0und i% the unit-lin.ed produ't that help% you in!e%t in the finan'ial mar.et% in a 'ombination of in!e%tment in%trument% of your

4#

0eature%F $inimum entry age i% #0 day% and ma-imum entry age i% =< year $a-imum poli'y term 40 year and minimum poli'y term < year Top up premium minimum 1%. 2<00 Option of in!e%tment fund 1. 3apital %e'ure 100M fi-ed intere%t %e'uritie% 2. Balan'ed minimum A0M fi-ed intere%t %e'uritie% ma-imum 40M in e+uity 2oan fa'ility i% not a!ailable One %(it'he% e!ery year free and %ub%e+uent %(it'he%

'harged 1M of the amount %(it'hed .

6artial (ithdra(al% per year under regular and %ingle premium option% i% 2 time%

2o'. in period till today i% # year $inimum unit a''ount balan'e after ea'h (ithdra(al% i% 1%. 10)000

)5 Reliance .olden 9ears PlanC 1

1elian'e

;olden

Gear%

6lanU..

The

1elian'e

2ife

/n%uran'e

Nno-(orry

%tay

happyCretirementplan. 1elian'e ;olden Gear% 6lan i% a fle-ible pa'.age that pro!ide% freedom of 'hoi'e in 'hoo%ing the type of in!e%tment) life 'o!er) !e%ting option% %u'h a% 'ommuting and annuity option%. 3ontribution% pro!ide /n'ome ta- %a!ing% a% (ell. 1elian'e ;olden Gear% 6lan) a fle-ible pen%ion produ't i% a!ailable for all indi!idual% (ho are bet(een the age% of 1A and =<. eaturesC 1 8ntry age minimum i% 1A year and ma-imum =< year )

44

$inimum premium amount 1%. 10)000 and ma-imum i% unlimited $ode of premium payment i% a!ailable 6en%ion plan (ith ri%. 'o!er and (ithout ri%. 'o!er 3hoi'e of in!e%tment i. 3apital %e'ure fund O A0M in e+uity and 20M in go!ernment %e'urity ii. Balan'ed fund O A0M in go!ernment and 20M in e+uity

'o loan facility is a0aila+le Ta> +enefit is a0aila+le

A''/IT9 OPTIO'S

i. &nnuity payable for life


ii. &nnuity payable for <:10:1< year% 'ertain and thereafter (ith life iii. &nnuity payable for life (ith return of 'apital on death of the annuitant

4<

OR.A'ISATIO'AL STR/CT/R2 48I2RARC895

B1& 39 $& &;81

&SST. B1& 39 $& &;81

S&28S $& &;81

S&28S $& &;81

S&28S $& &;81


4=

)<1:, A"7ISORS /'"2R 2AC8 SAL2S $A'A.2R

4>

R2CR/ITI'. LI 2 I'S/RA'C2 A"7ISORS*A.2'TS!

3#at is an insurance agent?


&n agent i% the repre%entati!e of an in%uran'e 'ompany (ho %ell% different poli'ie% or produ't to it% 'lient%. &nother term u%ed for in%uran'e agent% i% finan'ial ad!i%or%I thi% term (a% introdu'ed by 1elian'e life in%uran'e 'ompany 2td.

Today in life in%uran'e 'ompanie% ad!i%or% are .no(n to Be the ba'.bone of the (hole %y%tem. &d!i%or%:agent% do not (or. on monthly payroll ba%i%I they re'ei!e a 'ertain 'ommi%%ion on the poli'ie% they %ell to the 'lient%. The eligibility re+uired to be'ome an ad!i%or:agent i% that he:%he %hould be 12 th pa%% to operate in urban area and 10th pa%% for rural area%. Before a per%on be'ome% an ad!i%or:agent he:%he ha% to undergo 100hr% training a''ording to /1D& norm%) (hi'h i% 'ompul%ory.

>0-><M of profit% gained in life in%uran'e bu%ine%% are through ad!i%or%:agent%.

4A

Ad0isor Role!
To pro!ide ongoing finan'ial ad!i'e for hi%:her 'lient%F /dentify future 'lient% $a.ing appointment% 3ondu't finan'ial re!ie( meeting% (ith pro%pe't%:'lient%. 3lo%e %ale% ;et referral% 6ro!ide %er!i'e to 'lient%. 0ollo(% internal %ale% and reporting %y%tem.

3orDing 2n0ironment of an ad0isor*agent!

To be a part of (orld-'la%% %ale% team. @or. from your o(n offi'e or re%iden'e. @or. full time or part time (an ad!i%or 'an (or. part time by undergoing only <0hr% of training and 100hr% training i% for full time ad!i%or%.) 8arn 3ommi%%ion) Bonu% ? /n'enti!e%. o upper limit% on earning%.

0le-ible 'areer.

4B

Opportunities for an Ad0isor*agent!


o %tartup 'apital re+uired.

0le-ible (or.ing en!ironment. Be your o(n bo%%. Jnlimited earning potential. To be a part of a (orld-'la%% team.

<0

Commission Structure!
Different produ't% (ill ha!e different 'ommi%%ion %tru'ture%. 0or e-ampleF 3hildren 6lan ha% 'ommi%%ion BM to #A.0=M.

Renewal Commission is paid at t#e following ratesC


2nd yrF>.14M #rd yrF>.14M ?rene(al 'ommi%%ion 4.>=Mon(ard%

Payments F +enefits1commission Structure for ad0isors*agents!


Gear 1 <0 10000 <00000 12<000 <0000 1><000 Gear 2 >< 10000 ><0000 1A><00 ><000 2=2<00 #><00 1><000 #><00 #00000 Gear # 100 10000 1000000 2<0000 100000 #<0000 <=2<0 #><00 B#><0 44#><0

umber of 6oli'ie% Sold &!erage 6remium 1%. Total 6remium 8arned 1%. 3ommi%%ion V 2<M Bonu% V 40M of 3ommi%%ion 8arning% from e( Bu%ine%% 1%. 3ommi%%ion on 1ene(al 6remiumV>.<M 0or year 2) #) and <M after that 8arning% from rene(al bu%ine%% 1%. Total 8arning% 1%.

<1

$ost preferred profiles to recruit as Ad0isors*agent


3&CS Do'tor% 2a(yer% 1etired Defen%e offi'er% ;o!ernment employee% Ban.er% and bro.er%. &gent% of other life in%uran'e 'ompanie%. 8-e'uti!e% (or.ing in 'all 'enter%. 9ou%e (i!e%.

6eople from the%e profile% u%ually ha!e a good net(or. of 'ommuni'ation and do not fa'e mu'h problem in finding 'lient% and %elling different produ't%. ThatC% (hy almo%t e!ery in%uran'e 'ompany trie% to re'ruit people a% ad!i%or:agent belonging to the%e profile%.

<2

8O3 "O2S A' A"7ISOR*A.2'T 3OR&? - 0ir%tly an ad!i%or:agent ha% to ma.e a li%t of 100 people That he:%he .no(%. - Then the &d!i%or:agent ma.e% a 'all to the%e 'lient% and Trie% to fi- an appointment. - @hen an appointment i% fi-ed the ad!i%or:agent meet% The 'u%tomer ? trie% to %ell the produ't. - &fter that the ad!i%or:agent a%.% for the referen'e of ma-imum number of people from the 'lient. - The referen'e i% a%.ed in 'onte-t to ma.e future 'all% and the (hole pro'edure i% repeated again. But the +ue%tion remain% to (hom doe% the ad!i%or reportE &n ad!i%or:agent doe% not ha!e any parti'ular bo%%. There are no (or.ing hour% and any parti'ular day on (hi'h the ad!i%or:agent ha% to report in offi'e. &n ad!i%or:agent 'an do hi%:her operation% from any bran'h of the 'ompany lo'ated any(here in the 'ountry. But (hen an ad!i%or 'lo%e% a 'a%e (%ell% %ome produ't to the 'lient) it ha% inform hi%:her Jnit $anager.

<#

& Jnit manager i% the per%on (ho 'ontrol% the ad!i%or%:agent%I ea'h unit manager ha% a parti'ular %et of ad!i%or%:agent% (2<-#0)) (hi'h (or. (ith him:her a% a team

C8APT2R E: 8/$A' R2SO/RC2 $A'A.2$2'T


R2CR/IT$2'T 1e'ruitment i% the pro'e%% of finding and attra'ting 'apable appli'ant% for employment. The pro'e%% begin% (hen ne( re'ruit% are %ought and end% (hen their appli'ation% are %ubmitted. The re%ult i% a pool of appli'ant% from (hi'h ne( employee% are %ele'ted. 8/$A' R2SO/RC2 $A'A.2$2'T /n thi% 'ompany the Sale% $anager) (ho re'ruit% the ad!i%or%:agent% for %elling the produ't% of the 'ompany) doe% the re'ruitment. The ad!i%or% %hould ha!e at lea%t pa%%ed the S.S.3. e-amination. They mu%t pa%% the pre- re'ruitment e-amination) (hi'h i% 'ondu'ted by the /n%uran'e /n%titute of /ndia) $umbai) or any other appro!ed e-amination body. &fter 'learing the e-amination the 'ode (ill be pro!ided to them and the li'en%e (ill al%o be gi!en to them) the !alidity the li'en%e (ould be # year%. &fter all the%e re+uirement%) the per%on (ill be'ome an in%uran'e ad!i%or in the 'ompany. S2L2CTIO' Sele'tion i% the pro'e%% of pi'.ing indi!idual% (out of the pool of 4ob appli'ation%) (ith re+ui%ite +ualifi'ation% and 'ompeten'e to fill 4ob in the organi,ation. /n %imple (ord%) it i% the pro'e%% of differentiating bet(een appli'ant% in order to identify the%e (ith a greater li.elihood of %u''e%% in a 4ob.

<4

The Bran'h $anager) (hi'h in'lude%-) (ill 'ondu't the pro'e%% of %ele'tion Of Sale% $anager

(5 Personal Inter0iewC 1 The fir%t %tep of %ele'tion of Sale% $anager in the 1elian'e 2ife /n%uran'e 3ompany 2imited i% to 'ondu't a per%onal inter!ie( of an appli'ant by the Bran'h $anager )5 Project ;, Inter0iewC 1 &fter 'learing the per%onal inter!ie() the pro4e't 40 inter!ie( (ill be ta.en by the Bran'h $anager. /n thi% %tep) the appli'ant %hould ha!e to ma.e a li%t of 40 and then %tart the bu%ine%% (ith them. :5 Inter0iew wit# Regional 8eadC 1 &fter 'learing the pro4e't 40 inter!ie() the appli'ant %hould be inter!ie(ed by the 1egional 9ead) (ho (ill 'he'. hi%:her performan'e. ;5 'egotiationC 1 &fter 'learing the inter!ie( (ith 1egional 9ead) the negotiation (ill be pro!ided to the appli'ant. <5 $edical 2>aminationC 1 &fter that) the medi'al 'he'. up %hould e made to the appli'ant.

<<

=5 SelectionC 1 &fter 'learing all the abo!e %tep% the appli'ant %hould be appointed:%ele'ted a% a Sale% $anager in the 'ompany

"272LOP$2'T T8RO/.8 P2R O $A'C2 APPRAISAL

Training ? De!elopment S Standard 6erforman'e O &'tual 6erforman'e They are pro!iding 100 hour% training to their ad!i%or%) (ho are ne(ly re'ruited. They are al%o pro!iding the produ't training to their ad!i%or% and Sale% $anager%) (ho are ne(ly re'ruited. The 100 hour% training i% to be 'ondu'ted at et Bio% 3omputer &'ademy (herea% the produ't training i% to be 'ondu'ted at /S S6&1T&. The /S S6&1T& /n%titute ha% more than 1<0 bat'he% and i% trained o!er #000 agent% for mo%t of the pri!ate in%uran'e 'ompanie%. Thi% in%titute i% appro!ed by /D1& to train agent%:ad!i%or%. CAR22R "272LOP$2'T They are al%o pro!iding 'areer de!elopment plan%) (hi'h (ill identify potential and 'reate a!enue% for gro(th. CO$$/'ICATIO' 3ommuni'ation i% the pro'e%% through (hi'h an indi!idual 'an e-'hange their belief%) thing%) information) and e-perien'e to other%. /n %imple (ord%) it i% the pro'e%% of e-'hanging the information from one per%on to another. They are pro!iding an open en!ironment) (hi'h enabling free intera'tion

<=

bet(een all le!el%. The 'ommuni'ation i% pro!ided in the follo(ing manner

CO$P2TITOR O I'S/RA'C2 $AR&2T


2ife /n%uran'e Pu+lic 2ife /n%uran'e 3orporation of /ndia Pri0ate 1elian'e 2ife /n%uran'e 3o. 2td 9D03 Standard 2ife /n%uran'e $ae( Gor. 2ife /n%uran'e

/3/3/ 6rudential 2ife /n%uran'e Birla Sun-2ife /n%uran'e T&T& &/; 2ife /n%uran'e SB/ 2ife /n%uran'e / ; Ly%ya 2ife /n%uran'e Ba4a4 &llian, 2ife /n%uran'e $et2ife /n%uran'e 1elian'e 2ife in%uran'e &$6 Sanmar 2ife /n%uran'e

<>

&!i!a 2ife /n%uran'e Sahara /ndia /n%uran'e Shrirarn 2ife /n%uran'e Barti &-a 2ife /n%uran'e /DB/ 0orti% 2ife /n%uran'e 0uture general /ndia life in%uran'e 3anara 9SB3 ban. of 'ommer'e life in%uran'e

C8APT2R E ;

Marketing Department

<A

DISTRIBUTION CHANNEL
1elian'e 2ife /n%uran'e 3ompany 2imited i% u%ing fi!e type% of di%tribution 'hannel) (hi'h are a% follo(%F

(5 AgencyC
/ndependent in%uran'e agent% repre%ent a number of 'ompanie% and 'an re%ear'h the%e 'ompanie%C produ't% to find the right 'ombination for their 'lient%. /ndependent agent% ? in%uran'e produ'er group% are gro(ing in pre!alen'e. &lthough produ'er group% are in their infan'y)their emergen'e may potentially be realignment in the di%tribution of finan'ial %er!i'e%. /ndependent %hop% reali,ed that by pooling produ'tion and funding a 'entral %upport offi'e) they had in'rea%ed buying po(er.The one type of di%tribution 'hannel) (hi'h 1elian'e 2ife /n%uran'e 3o. 2td i% u%ing) i% an agen'y. Thi% 'hannel (or.% a% follo(%F Bran'h $anager% &d!i%or% 3u%tomer%

)5 %anD AssuranceC 1
@hile a lot of ban. relation%hip% (ith in%uran'e 'ompanie% ha!e been e%tabli%hed) life

<B

in%uran'e %ale% ha!e been %lo(er than one (ould e-pe't he primary ban. in%uran'e a'ti!itie% ha!e been the Di%tribution of annuitie%) 'redit life) and dire't mar.eting in%uran'e.Ban.% are failing to in'orporate %u''e%%ful %ale% ta'ti'% u%ed to %ell other0inan'ial %er!i'e% li.e in!e%tment%. &nother type of di%tribution 'hannel i% ban. a%%uran'e. Thi% 'hannel i% tie up (ith ban.%. /n thi% 'hannel the ad!i%or% Targeting the ban. 'u%tomer% to ma.e a bu%ine%% (ith them i.e.) to %ell the poli'y of the 'ompany.

:5 CorporateC1
To gain a better under%tanding of the demand among%tindependent ad!i%or% for tru%t %er!i'e% and to gain a better feel for ho(independent ad!i%or% handle tru%t %er!i'e%) a re%ear'h (a% performed (ith independent ad!i%or% a'ro%% %e!eral bro.er:dealer% and 'u%todian%.The inter!ie(% re!ealed that demand i% greate%t for li!ing tru%t% amongindependent ad!i%or%) follo(ed by demand for 'orporate tru%tee %er!i'e%.&nother type of di%tribution 'hannel i% 'orporate) (hi'h are for employee benefit%. Thi% 'hannel i% tie up (ith 'orporate or %mall.enterpri%e%. Through the%e %mall enterpri%e%) the ad!i%or% (ill %ell the produ't%:poli'y to 'u%tomer% of the %mall enterpri%e%.

;5 Rural %enefitsC1
Bro.erage firm% ha!e gained mu'h of the in%titutional and per%onal tru%t bu%ine%% lo%t by the ban.%. The%e firm% ha!e %teadily 'aptured a%%et%) primarily at the e-pen%e of the ban.%. The number of non-ban. tru%t 'ompanie% ha% in'rea%ed in re'ent year% a% independent tru%t 'ompanie% ha!e emerged and more bro.er:dealer% are integrated

=0

%er!i'e%. /n%uran'e 'ompanie% !ie( full-%er!i'e bro.er% a% a potentially ne( di%tribution 'hannel a% (ell. &nother type of di%tribution 'hannel i% rural benefit%. Thi% 'hannel (or.% a% a dealer%hip. /n thi% 'hannel) the dealer% (ill %ell the poli'y to the target 'u%tomer%.

<5 3e+ 3orldC1


Dire't %ale% of life in%uran'e are gro(ing rapidly) but many of the traditional full-%er!e player% %eem to be letting it go. &'ro%% all finan'ial %er!i'e%) 'on%umer% are e-pre%%ing a (illingne%% to deal (ith a !ariety of pro!ider% on the (eb. @eb %ite% are %tarting to pop up offering 'on%umer in%uran'e produ't% e%pe'ially de%igned for di%tribution o!er the (eb. &nother type of di%tribution 'hannel i% (eb (orld. Thi% 'hannel i% tie up (ith 'u%tomer databa%e. /n thi% 'hannel) the ad!i%or% (ill %ell the poli'y to the target 'u%tomer%) (hi'h are ta.en from the 'u%tomer databa%e) are li%ted in the (eb%ite.

PRO$OTIO'AL PRO.RA$$2S FTAR.2T S2.$2'T


6romotional programme% and target %egment are related to ea'h other. The promotional programme% are made to moti!ate the ad!i%or%:agent% and %ale% manager% to do more bu%ine%% i.e.) to %ell the more poli'ie%. The 1elian'e 2ife /n%uran'e 3o. 2td ha% made three promotional %'heme%) (hi'h are a% follo(%F

(5 S#u+# E Aram+#C1
Thi% promotional %'heme i% detailed a% follo(%F S2&B (@16) 18@&1D

AC8I272RS
#0)000 1elian'e 2ife T-Shirt <0)000 Table Top 3lo'. ><)000 2eather Bag 1)00)000 @orld Spa'e 1adio

=1

1)<0)000 2.;. $i'ro(a!e- 1B2 2)00)000 DLD:L3D:$6# 6layer #)00)000 Sony $u%i' Sy%tem

S/P2R AC8I272RS
<)00)000 2; 1efrigerator% ;2-2## >)<0)000 2; &ir 3onditioner 1T 10)00)000 Sony Digital 3am 'order 1<)00)000 Trip to Dubai #D:4 20)00)000 9ero 9onda Splender

STAR AC8I272RS
<0)00)000 $aruti &lto Std. ><)00)000 $aruti S(ift 2-i 1)00)00)000 ;$ &!eo 1.42S 2oginF 1%t &pril to #1%t $ay N0= /%%uan'e till 1<th Pune N0=

)5 R!A!R!2!C1
The full form of 1.&.1.8. i% 1elian'e &d!i%orC% 1e(ard 8-perien'e. Thi% program% 'on%i%t% of 1. e( &d!i%or /n'enti!e 6rogram 2. Board of &d!i%or%

=2

#. &nnual Di%'o!ery Serie% 4. &d!i%or 3areer 6rogre%%ion <. 1&18 3lub O 2oyalty 6rogram The abo!e program% are de%'ribed a% follo(% 1. 1.&.1.8. 6rogram e( &d!i%or /n'enti!e%FThere (ill be t(o le!el% in the e( &d!i%or /n'enti!e program. &. 2aun'h 6ad B. Ta.e Off 2. 1.&.1.8. 6rogram Board of &d!i%or%FThere (ill be t(o le!el% in the Board of &d!i%or% program &. Time 6eriod B. 6arameter% #. 1.&.1.8. 6rogram Di%'o!ery Serie%FThere (ill be %i- le!el% in the Di%'o!ery Serie% program &. Rualifi'ation period B. Bu%ine%% 'riteria 3. The +ualifi'ation 'riteria (ill be the %ame for both the ;lobal and the ational Di%'o!ery Serie% D. Rualifi'ation for the ;lobal Di%'o!ery Serie% 8. Rualifi'ation for the ational Di%'o!ery Serie% 0. The top 1<0 (ill bb 'al'ulated ba%ed on @16 (@eighted 1e'd 6remium) 4. 1.&.1.8. 6rogram &d!i%or 3areer 6rogre%%ionF&d!i%or 3areer 6rogre%%ion &. Bu%ine%% &%%o'iate B. Sale% $anager

<. 1.&.1.8. 6ri!ilege 3lubF&. The 1&18 3lub (ill ha!e = different le!el%

=#

B. The 'riteria for entry into ea'h le!el (ill be ba%ed on /. Bu%ine%% (@16) //. 6er%i%ten'y ///. 6rodu't $i3. The +ualifi'ation period i% /. 2ogin% from 1%t &pr C0= to #1%t $ar N0> //. /n%uran'e% from 1%t &pr C0= to 1<th &pr N0> Rualifi'ation 3riteria 2e!el @16 (1%) Traditional 6rodu't% 6er%i%ten'y Topa, 1)<0)000 =0M A0M 6earl <)00)000 =0M A0M Sapphire 10)00)000 =0M A0M 8merald 1<)00)000 <0M A<M 1uby 2<)00)000 <0M A<M Diamond <0)00)000 <0M A<M

:5 2lite Clu+ Sc#emeC1


/n thi% %'heme the ad!i%or) (ho ha!e login the regular premium of 1%. 2) 00)000 (ill be eligible for the 8lite 3lub $ember%hip.

=4

C#apter 1; R2S 2ARC8 $ 2 T 8 O " O L O . 9

Type of data 'olle'tion method% The ta%. of data 'olle'tion begin after a re%ear'h problem had been defined and re%ear'h de%ign:plan and 'he'.ed out (hile de'iding about the method of data 'olle'tion to be u%ed for %tudy. The re%ear'her %hould .eep in mind t(o type% of data 0iH!@ primary and secondary! The primary data are tho%e (hi'h 'olle'ted fre%h and for fir%t time) and thu% happened to be original 'hara'ter. The %e'ondary data) on the other hand) are tho%e

=<

(hi'h ha!e already been 'olle'ted by %ome one el%e and (hi'h ha!e already ha!e been pa%%ed through the %tati%ti'al pro'e%%.

Primary "ata
*6rimary data may be de%'ribe a% tho%e data that ha!e been ob%er!ed and re'orded by the re%ear'her for the fir%t time for there .no(ledge.*

Secondary "ata
*Se'ondary data are %tati%ti'% not gathered for immediate %tudy at hand (hat for %ome other purpo%e%.* They may be de%'ribed a% tho%e data that ha!e been 'ompiled by %ome agen'y other than the u%er.

==

"ata Sources
$ainly in a re%ear'h pro'e%% both) 6rimary and Se'ondary type% of data %our'e% are u%ed. /n thi% re%ear'h al%o (e ha!e t(o .ind% of data %our'e% gi!en belo(F

(5 Primary "ataC Rue%tionnaire and /nter!ie( )5 Secondary "ataC @eb page%) 3ompany PournalD% ? Bro'hure%
Sin'e itD% a li!e pro4e't 'on%idering an inten%i!e %ur!ey) +ue%tionnaire% filled by through an in-depth inter!ie( %e%%ion (ith the ban. 'u%tomer% are the .ey %our'e of information.

"ata Collection InstrumentsC


The in%trument% u%ed for data 'olle'tion i% a Rue%tionnaire (hi'h i% been filled by a %ur!ey team through 'ommuni'ation and intera'ti!e %e%%ion (ith the 'u%tomer% of a parti'ular ban.. 8a'h +ue%tionnaire repre%ent% e%%en'e information about a 'u%tomer. So) a 'ombination of /nter!ie( and Rue%tionnaire a% a data 'olle'tion i% employed.

Sample siHeC 1
The %ample %i,e fi-ed for the pro4e't i% 100 re%pondent% from !ariou% pla'e% of &2/;&19

=>

Analysis of "ata
A Study on Customer Perception towards Insurance Plans of Reliance Life Insurance "ata Analysis Of t#e Sur0ey (5 "o you Dnow a+out Reliance Life Insurance ? Responses 9es 'o Total I =< :< (,,

%of Respondent

yes no

Interpretation1C Out of total (,,

respondent @ it is found t#at =<I Dnows a+out reliance life insurance or :<I does not Dnown!

=A

2) Which company would you prefer to invest? a) L.I.C. b) ICICI rudential c5%ajaj allianHe d5 Reliance life insurance Company L!I!C! ICICI Prudential %ajaj allianHe Reliancelifeinsurance Total I of in0estment ;< (, (< )< (,,

InterpretationC1 Out of total (,, responses@ ;<I in0est in L!I!C! @(,I in icici prudential@ (<I in +ajaj allianHe @ )<I in Reliance life insurance!

!) in Which area customer prefer to investment ? a) "overnment security b) Insurance b) #utual fund d) $%uity share

=B

Customer prefer .o0ernment security Insurance $utual fund 2Juity s#are Total

I of in0estment :, :< ), (< (,,

InterpretationC1 &bo!e bar 'hart %ho(% that #0M re%pondent of preferrd in ;o!t. Se'urity ) #<M in /n%uran'e) 20M in $utual 0und) 1< M in 8+uity Share.

>0

4)

!i"! type o# p$an respon%ent pre#er to take & a) En%o'ment p$an () money(a"k () )*re Risk %) Term Ins*ran"e )$an Customer prefer 8ndo(ment plan $oneyba'. 6ure 1i%. Term /n%uran'e 6lan Total I of in0estment ;= )= (= () (,,

InterpretationC1 &bo!e bar 'hart %ho(% that ma4ority of re%pondent prefer 4=M 8ndo(ment plan ) 2=M $oney ba'. plan ) 1=M 6ure 1i%. 6lan and around 12M prefer Term /n%uran'e 6lan.

>1

+)

!i"! type o# a%%itiona$ (ene#its respon%ent pre#er #rom po$i"y & a) A""i%enta$ () "riti"a$ i$$ness () Start o# $i#e #ami$y %) ,$e-i(i$ity

Customer prefer &''idental 'riti'al illne%% Start of life family 0le-ibility Total

I of +enefit )= ;= (= () (,,

>2

InterpretationC1 &bo!e bar 'hart %ho(% ma4ority of re%pondent prefer 'riti'al illne%% 4=M ) &''idental 2=M ) %tart of life family in'ome 1=M ) 0le-ibility 12M .

.) T!e ,a"tors t!at moti/ate% Respon%ent pre#er Re$ian"e Li#e Ins*ran"e & a) Bran% name () 0oo% i$$ ") Ser/i"e %) A%/ertisement

Customer prefer Brand name Ser!i'e ;ood @ill &d!erti%ement Total

I of $oti0ated factor :, (A :A (; (,,


>#

%of motivated factor


42 5+ 52 4+ 42 3+ 32 + 2

6o# moti/ate% #a"tor

InterpretationC1 &bo!e bar 'hart %ho(% that #AM of re%pondent prefer 1elian'e 2ife /n%uran'e for it% ;ood @ill ) #0 M of Brand ame )1AM for Ser!i'e ) 14M of people prefer due to ad!erti%ement.

1)

!i"! ,a"tor most %issatis#y a respon%ent #rom Re$ian"e Li#e Ins*ran"e & a) A#ter sa$e ser/i"e () )ro%*"t Di/ersi#i"ation ')0und 6erforman'e d) &d!erti%ement

Customer prefer &fter %ale %er!i'e 6rodu't Di!er%ifi'ation 0und 6erforman'e &d!erti%ement Total

I of $oti0ated factor )A :A ), (= (,,

>4

InterpretationC1 &bo!e bar 'hart %ho(% that 2AM of re%pondent di%%atified (ith after %ale %er!i'e of 1elian'e 2ife /n%uran'e ? #=M for 6rodu't di!er%ifi'ation ) 20M for fund 6erforman'e ? 1=M people di%%ati%fied due to &d!erti%ement.

7) Ranking o# ser/i"e o##ere% (y Re$ian"e Li#e Ins*ran"e & a) E-e$$ent () 0oo% ')&!erage d) Bello( &!erage

><

Customer prefer 8-ellent ;ood &!erage Bello( &!erage Total

I RanDing of ser0ice (= ;) )A (; (,,

InterpretationC1 &bo!e bar 'hart %ho(% that 1=M of re%pondent feel% %er!i'e offered by 1elian'e /n%uran'e are 8-ellent ? 42M thin.% ;ood ) 2AM feel% &!erage ) 14M people feel% belo( a!erage.

>=

B)/f gi!en a 'han'e do you again prefer to buy they 1elian'e 2ife /n%uran'e 6oli'y in future E a) ye% b) no

Customer 9es 'o Total

I of response =< :< (,,

InterpretationC &bo!e pie 'hart %ho(% that =<M per%ent prefer to buy the 1elian'e 2ife /n%uran'e ?#<M doe% not (ant to buy .

>>

10) @hat i% your main moti!e behind in!e%ting in 1elian'e 2ife /n%uran'e E a) Ta- (ene#it ')1i%. 'o!er () Sa/ing d) 1eturn :yield

Customer prefer Ta- benefit Sa!ing 1i%. 3o!er 1eturn : Gield Total

I in0esting moti0e (= )A ;) (; (,,

>A

InterpretationC1 &bo!e bar 'hart %ho(% that main moti!e behind in!e%ting in 1elian'e 2ife /n%uran'e i% 42M of 1i%. 3o!er) 2AM of Sa!ing ) 1=M Ta- Benefit ) 14 M of 1eturn : Gield .

S/$$AR9 O

I'"I'.S

The %ummary of *Sur!ey* 'ondu'ted for 1elian'e 2ife /n%uran'e) 3an be li%ted do(n in 'on4un'tion (ith the data analy%i% pre%ented. The %ur!ey ha% been %imultaneou%ly ta.en up by the 'ompanyD% 'ompetitorD% li.e- /3/3/ 6rudential) 9D03 Standard but the impa't on 1elian'e 2ife (a% po%iti!e. The fun'tioning and re%pon%e% from the re%pondent% (ere authenti' leading to a better !ie( of the mar.et %'enario. The finding% are li%ted belo(F The 'ompany i% targeting on emerging finan'ial mar.et in /ndia (ith great potential. $a4ority of the re%pondent% are from %alaried 'la%%. 2itera'y le!el of the re%pondent% i% high) ma4ority of them are edu'ated. $ainly) male re%pondent% ha!ing in%uran'e then female. $o%tly) married re%pondent% ha!ing a in%uran'e. &!erage annual in'ome of re%pondent% i% bet(een 1-2.< la'%. $a4ority of re%pondent% are ha!ing a 2ife /n%uran'e 6oli'y. $o%t of re%pondent% are ha!ing a poli'y (ith 2/3. $a4ority of re%pondent% are (illing to a!ail all the e-tra benefit% (ith their 2ife /n%uran'e by

>B

paying a nominal fee or 'harge% (ith their poli'y premium. $o%t of re%pondent% are intere%ted in 3riti'al /llne%% benefit.

A0

S3OT A'AL9SIS
STR2'.T8 1) 1elian'e 2ife /n%uran'e 3ompany 2imited i% the part of the 1elian'e 3apital. 2) The brand name i% enough to %ell the produ't% ea%ily. #) 6ri!ate pla'ement of 1%. 10)000 'r% (orth of %e'uritie% (ith 1B/ by the go!ernment. 2ed to an impro!ement in mar.et %e'uritie%. 4) Strong li+uidity from 0// (a% the ma4or rea%on for the up mo!e. <) 1ange of produ't% =) 1elian'e ha% a long and %trong hi%tory of %ol!en'y) finan'ial %tability.

32A&'2SS 1) e(ly e%tabli%hed 'ompany) %o people %eem% it ri%.y. 2) 2a'. of %taff. #) 2a'. of ad!erti%ement) %o mo%t of the 'u%tomer% are not a(are of the 1elian'e 2ife /n%uran'e.

A1

OPPORT/'ITI2S 1) There i% a !a%t untapped mar.et in /ndia. The life in%uran'e in /ndia i% appro-imately 2.<M. So it ha% large potential. 2) /ntention of traditional produ't% i% to en'ourage long term)regular and di%'iplined %a!ing% to %y%temati'ally build up a target fund. #) The a!erage in%uran'e premium being 'olle'ted by the 'ompany ha% been gro(ing e-ponentially year on year.

T8R2ATS 1) The main threat i% from the other player% (ho ha!e grabbed appro-imately 1<M of the mar.et %hare. 2) &% the go!ernment ha% %'rapped the rebate on the life in%uran'e premium) the people (ho u%ed to in!e%t in life in%uran'e for the %ole moti!e of ta- benefit may turn to other in%trument%.

A2

C#apter 1< CO'CL/SIO'


&fter the deep %tudy of in%uran'e %e'tor of /ndia) / 'an tell that thi% i% the %e'tor) (hi'h ha% mo%t bu%ine%% opportunitie% perhap% in /ndia. /n%uran'e indu%try i% one of the fa%te%t %e'tor% in /ndia. /n%uran'e %e'tor ha% been gro(ing by 2<M to #0M and it i% e-pe'ted to in'rea%e by <0M in 'oming < year%. &fter the opening up of the in%uran'e %e'tor) it ha% be'ome mu'h 'ompetiti!e and in%uran'e a(arene%% among people ha% in'rea%ed. &% far a% the 'ompari%on of 1elian'e 2ife /n%uran'e and other player% i% 'on'erned) there are both po%iti!e a% (ell a% negati!e impa't% on both the %ide%. 0or 1elian'e 2ife /n%uran'e) the negati!e a%pe't i% that it% mar.et %hare i% lo(. 0or pri!ate player% the negati!e a%pe't i% that they ha!e to fight (ith the publi' %e'tor giant (hi'h i% e%tabli%hed player (ith a high brand !alue. But the po%iti!e impa't i% that the life in%uran'e a(arene%% ha% in'rea%ed and the bu%ine%% of 1elian'e 2ife /n%uran'e ha% in'rea%ed.

A#

LI$ITATIO'
'ot pro0ide full information a+out t#e insurance plan! 'on a0aila+ility of proficient ad0isor! Log in policy in time period ot#erwise t#e policy will +e lapsed! $ost of t#e people are not aware of t#e +enefit of t#e insurance plan! T#e company #as a Deen interest in t#e de0elopment and en#ancement of its products in India! Reliance Life products #a0e tremendous amount of potential and demand in t#e marDet! inally I conclude t#at Reliance Life #as +uilt up a +rand name@ w#ic# needs to +e maintained t#roug# continuous feed+acD@ impro0ement and proacti0e actions

A4

R2CO$$2'"ATIO' * S/..2TIO'
To en#ance t#e awareness a+out product! To increase t#e 0alue relations#ip among customer! To pro0ide protection F relia+ility among customer! A0ail information F Dnowledge t#at t#ey prompt to +uy insurance plan! To +e 0ery loyal F trut#ful to t#e customer in order to increase demand in t#e marDet! To get %ome good mar.et e-po%ure by dealing (ith the pro%pe't% fa'e to fa'e. To impro!e our ability to %ell a finan'ial produ't li.e life in%uran'e. To .no( the per'eption of the 'on%umer about life in%uran'e. To get a deep .no(ledge of the finan'ial produ't li.e in%uran'e. To get %ome information about the mar.et %hare of 1elian'e 2ife /n%uran'e a% 'ompare to the giant% li.e 2/3 and to .no( the %tanding of the 'ompany in the mar.et.

A<

%I%LIO.RAP89
@8B6&;8S (((.relian'elife.'om

(((. 1elian'emutualfund.'om

3ompany Pournal% ? 6rodu't Bro'hure% 1elian'e 2ife 6rodu't Bro'hure% 1elian'e 2ife 3ompany Pournal% 1elian'e 2ife )3ompany 0inan'ial 1eport% Broa'her% of 1elian'e 2ife /n%uran'e

A=

.lossary
8ndo(ment 6lanF 2ife in%uran'e for a %pe'ified amount (hi'h i% payable to the in%ured per%on at the e-piration of a 'ertain period of time or to a de%ignated benefi'iary immediately upon the death of the in%ured. Term /n%uran'eF 2o(-'o%t in%uran'e that i% !alid only for a %tated period of time and ha% no 'a%h %urrender !alue or loan !alue 3ontra'tF & binding agreement bet(een t(o or more per%on% that i% enfor'eable by la( /n%uran'e 6oli'yF & (ritten 'ontra't or 'ertifi'ate of in%uran'e 6remiumF 6ayment for in%uran'e /n%uran'e 3laimF Demand for payment in a''ordan'e (ith an in%uran'e poli'y

A>

A''2G/R2

AA

K/2STIO''AIR2

.eneral InformationC 1. ameFKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK 2. &- 'FKKKKKKKK #. Se-F $ale W X 0emale W X 4. $arital Statu%F Single W X $arried W X <. 8du'ational Ba'.groundF 9igh S'hool W10T2 W X ;raduate W X 6o%t ;raduate W X =. &ddre%%FKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK KuestionsC (5 "o you Dnow a+out Reliance Life Insurance ? a5 9es L M +5 'o L M '

4) Which company would you prefer to invest? a) L.I.C. & ' b) ICICI rudential & c5%ajaj allianHeL M d5 Reliance life insurance L M

:5 In Which area customer prefer to investment? c) "overnment security & ' b) Insurance & ' d) #utual fund & ' d) $%uity share & ' 4) !i"! type o# p$an respon%ent pre#ers to take& a) En%o'ment p$an 8 9 () money (a"k 8 9 ") )*re Risk 8 9 %) Term Ins*ran"e )$an 8 9 !i"! type o# a%%itiona$ (ene#its respon%ent pre#er #rom po$i"y & a) A""i%enta$ 8 9 () "riti"a$ i$$ness 8 9 %) Start o# $i#e #ami$y in"ome 8 9 %) ,$e-i(i$ity 8 9

<)

=) T!e ,a"tors t!at moti/ate% Respon%ent pre#er Re$ian"e Li#e Ins*ran"e & a) Bran% name 8 9 () 0oo% i$$ 8 9 ") Ser/i"e 8 9 %) A%/ertisement 8 9

AB

>)

!i"! ,a"tor most %issatis#ies a respon%ent #rom Re$ian"e Li#e Ins*ran"e& a) A#ter sa$e ser/i"e 8 9 () )ro%*"t Di/ersi#i"ation 8 9 ')0und 6erforman'e W X d) &d!erti%ement W X Ranking o# ser/i"e o##ere% (y Re$ian"e Li#e Ins*ran"e & a) E-"e$$ent 8 9 () 0oo% 8 9 ') &!erage W X d) Bello( &!erage W X /f gi!en a 'han'e do you again prefer to buy they 1elian'e 2ife /n%uran'e 6oli'y in future E a) ye% W X b) no W X

A)

B)

10) @hat i% your main moti!e behind in!e%ting in 1elian'e 2ife /n%uran'e E a) Ta- benefit W X b) Sa!ing W X ')1i%. 'o!er W X d) 1eturn :yield W X

Than.ing Gou

B0

B1

B2