CONTENT
About Life Insurance Industry profile Organization profile Analysis Findings Suggestion Conclusion
INDUSTRY PROFILE
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. TIME LINE IN INSURANCE HISTORY 1818 British introduced the life insurance to India with the establishment of the Oriental Life Insurance Company in Calcutta. 1850 Non life insurance started with Triton Insurance Company. 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer.
1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business.
1938 The Insurance Act was enacted.
1956 Nationalization took place. Government took over 245Indian and foreign insurers and provident societies. 1972 Non-life business nationalized, General Insurance Corporation (GIC) came into being. 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R. N. Malhotra to draw a blue print for insurance sector reforms.
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.
2) Assignment: If your intention is that your policy monies should go only to a particular person, you need to assign the policy in favor of that person.
3) Death Benefit: The primary feature of a life insurance policy is the death benefit it provides. Permanent policies provide a death benefit that is guaranteed for the life of the insured, provided the premiums have been paid and the policy has not been surrendered. 4) Cash Value: The cash value of a permanent life insurance policy is accumulated throughout the life of the policy. It equals the amount a policy owner would receive, after any applicable surrender charges, if the policy were surrendered before the insured's death. 5) Dividends: Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company's divisible surplus
6) Paid-Up Additions: Dividends paid to a policy owner of a participating policy can be used in numerous ways, one of which is toward the purchase of additional coverage, called paid-up additions.
7) Policy Loans: Some life insurance policies allow a policy owner to apply for a loan against the value of their policy. Either a fixed or variable rate of interest is charged. This feature allows the policy owner an easily accessible loan in times of need or opportunity.
8) Conversion from Term to Permanent: When in need of temporary protection, individuals often purchase term life insurance. If one owns a term policy, sometimes a provision is available that will allow her to convert her policy to a permanent one without providing additional proof of insurability.
9) Disability Waiver of Premium Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an additional cost. It guarantees that coverage will stay in force and continue to grow
Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate. 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.
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 Child Plan 4) Reliance Endowment Plan 5) Reliance Special Endowment Plan 6) Reliance Cash Flow Plan 7) Reliance Credit Guardian Plan 8) Reliance Special Credit Guardian Plan
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. 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. 3) Reliance Child Plan: This insurance policy is designed for people who wish to save money for a future time when there will be a recurring need for substantial amounts of money.
4) Reliance Endowment Plan: Reliance Life Insurances Reliance Endowment Plan is the key to all your financial needs. It is an inexpensive and easy way to protect you, your family or your business. 5) 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. 6) Reliance Cash Flow Plan: This insurance policy is designed for those who have a recurring need for reinvestment in business or look for short-term investment channels.
7) Reliance Credit Guardian Plan: This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death.
8) Reliance Special Credit Guardian Plan: This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death, disability or critical illnesses.
UNIT LINKED PLAN A unit-linked policy is a life assurance policy in which the benefitsdepend on the performance of a portfolio of shares.Each premium paid by the insured person is split: a part is used to provide life assurance cover, while the balance (after the deduction of costs,expenses, etc.) is used to buy units in a unit trust. Reliance Life Insurance Company Limited has also offered the two Unit Linked Plans, which are listed as follows: 1) Reliance Market Return Plan 2) Reliance Golden Years Plan
RESEARCH METHODOLOGY
PURPOSE /NEED FOR STUDY This project will help Reliance Life Insurance Company Private Limited to know customer preference over life insurance and its market share in India. By knowing this the company can understand where does it stand in comparison to other market players. By following this reports new strategy can be adopted to increase market share of the company. OBJECTIVE 2) To improve our ability to sell a financial product like life insurance. 3) To know the perception of the consumer about life insurance. 4) To get a deep knowledge of the financial product like insurance. 5) To get some information about the market share of Reliance Life Insurance as compared to the giants like LIC and to know the standing of the company in the market
RESEARCH DESIGN The methodology used for preparation of this project is easy and the language used is simple to understand The fact, figures and data used in this project are true and have been derived directly from the secondary data. In addition to following Pie Charts , Flow Charts and Tables have also been used.
DATA ANALYSIS
Own 47%
Rented 53%
Share market 8%
gold 20%
Yes 85%
7. Do you have any insurance policy? If Yes which plan & what is the coverage
Policies
No 5%
HDFC 11%
Savings 28%
14. :Do you feel whether private insurance companies are beneficial?
Private insurance are beneficial
15. Do you feel health insurance is worth opting for as expense on health treatment increasing day by day?
Preferences of Health Insurance
Strongly agree 10% Strongly disagree 29%
Disagree 4%
Agree 57%
Bajaj Alliance 5%
FINDINGS
SUGGESTION
CONCLUSION
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