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ON

CHANNEL DEVELOPMENT IN RELIANCE LIFEINSURANCE

Prepared and Presented to:

Under The Guidance Of :

Companys Guide:- Faculty Guide:-

Rahul Srivastava Swati Priya

(Sr. Sales Manager)

(Submitted in the partial fulfillment for the award of the degree ofMaster Of Business Administration from G.B Technical University,

Session-2009-2011)

Submitted By :-

BIPIN SINGH

Roll No. 0914170013(MBA III Sem.)

Sagar Institute Of Technology & Management Barabanki .

(2009-2011)


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CERTIFICATE BY INDUSTRY GUIDE

This is certify that BIPIN SINGH student of MBA II Year, SAGAR INSTITUTE OF

TECHNOLOGY & MANAGEMENT BARABANKI, has undergone a research

report on CHANNEL DEVELOPMENT IN RELIANCE LIFE INSURANCEand

has submitted a report the based same as mandatory requirement of the degree of

Master of business Administration, U.P Technical University Lucknow.

Date. Sr. Sales Manager

(Rahul srivastava)

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PREFACE

The business of insurance is related to the protection of economic value

of assets . The assets would have been created through the efforts of the

owner , in the expectation that , e i ther through the income generated

there from the some other output, some of his needs would be met. If

assets get lost earlier, being destroyed or made non-functional, through

an accident or other unfor tunate event , the owner and those der iving

benefi ts there f rom suf fer. Insurance i s a mechanism tha t he lps to

reduce such adverse consequences.

Insurance plays a major role in di fferent perspective. For economic

development inves tments are necessary . Inves tments are made out of

s av ings . A l if e i ns ur ance company i s a maj or i nves tmen t f or t he

mobil izat ion of saving of people, part icularly f rom the middle and

lower income groups. These savings are channeled in to the investments

for economic growth. In order to amenable to s tat i s t ical predict ions ,

insurance risks must be handled on a large scale.

All organization face change in their environment with resultant change

i n t he ir mar ke ts and i n t he abi li ty t o s at is fy t he ir mar ke ts . Each

organization is faced with new marketing problems and opportunities in

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their exis t ing and potent ial market . Market ing decis ion makers cope

with these challenges in a variety of ways.

ACKNOWLEDGEMENT

This is to express my heartiest gratitude towards all those who helped and inspired me

to complete my project report.

I feel immense pleasure in submitting my summer training project report.

I am highly thankful to my Director Prof. J.K.Johari SITM Barabanki for his

support and encouragement that he provided me during the tenure of the project

report.

I am also thankful to my H.O.D Mr. K.K.Mishra Associate Prof. (H.O.D) of MBA

and to my faculty guide Ms. Swati Priya for their kind and constant support and

guidance.

At the end I would like to mention about the constant motivation and help that I

received from my family, teachers, friends and batch mates for completing my project

report.

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( BIPIN SINGH)

EXCUTIVE SUMMARY

Topic :- CHANNEL DEVELOPMENT IN RELIANCE LIFE INSURANCE.

Objective:-

At Reliance Life Insurance, we strongly believe that as life is different at every stage,

life insurance must offer flexibility and choice to go with that stage. We are fully

prepared and committed to guide you on insurance products and services through our

well-trained advisors, backed by competent marketing and customer services, in the

best possible way.

It is our aim to become one of the top private life insurance companies in India

and to become a cornerstone of RLI integrated financial services business in

India.

RESEARCH METHODOLOGY

METHODS OF COLLECTING DATA:

The method of data collected was personal interaction, telephonic interview,

observations of the existing appraisal system of Reliance life insurance

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The data so far collected or provided is secondary as total tele-calling was done on an

already existing data for financial planning and to become company s certified

financial consultant. But directories are also used to find out the contacts.

TYPE OF DATA COLLECTED

There are One types of data used. They are primary Data.

Primary data is defined as data that is collected from original sources for a specific

purpose. Secondary data is data collected from indirect sources.

DATA COLLECTION METHOD:-

Survey

PRIMARY SOURCES

These include the survey or direct communication with employees and questionnaire

method, telephonic interview as well as the personal interview methods of data

collection.

RESEARCH DESIGN:-

Exploratory Research.

SAMPLING METHODOLOGY

Sampling Technique:

Initially, a rough draft was prepared keeping in mind the objective of the research. A

pilot study was done in order to know the accuracy of the Questionnaire. The final

Questionnaire was arrived only after certain important changes were done. Thus my

sampling came out to be judgmental and convenient

Sample design:-

Universe

Sampling Unit:

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The respondents who were asked to fill out questionnaires are the sampling units.

These comprise of employees of MNCs, Govt.Employees, Self Employed etc.

Sample size:

The sample size was restricted to only 100, which comprised of mainly people from

different regions of Lucknow due to time constraints.

Sampling Area :

The area of the research was Lucknow, India.

CONCLUSION

Over the next five years the Life Insurance Sector would change as it will

undoubtedly be substantially larger than it is at present and rate of returns will vary

according to the fall and rise in the market like it happened recently when market just

was going up and up that the Sensex even touched 20000 and when it fell it even went

to 15000 so this variation will always be there no doubt. But it is really a difficult task

to get clients for insurance but not impossible too if done in a systematic way and with

proper attention and sincerity.

Moreover, the success of marketing also depends on the way you interact with the

customers and how frequently you can convince the customer by getting into their

mind. Tele-calling no doubt is helpful if further process is done with sincerity but it

must be effective in itself too like if a person is out of the town he resides in then just

take time to call again later so as not to disturb him.

Another thing is that you must talk to them being friendly so that they won t think that

you are wasting their time and many other things should be kept in mind while talking

to the customers means one must know business ethics and techniques, etiquettes no

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doubt required. Try and go for indirect marketing for insurance as it becomes easy to

develop contacts if you are having references.

Yes, the very important thing is to have the good customer relations and keep .

CONTENT

I. Preface 3

II. Acknowledgement 4

III. Objective of study 5

IV. Introduction of study 9

V. Research Methodology 6

Research variable

Research design

Sample and Sampling Size

VI. Company Profile: 10

Reliance Insurance 10

Project Profile 40

Research Methodology 57

Data Analysis 61

VII. Data Representation, Analysis & Interpretations 62

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VIII. Results 74

IX. Limitations 76

X. Suggestions 77

XI. Conclusion 79

XII. Annexure 80

XIII. Bibliography 83

CHAPTER 1

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COMPANY PROFILE OF RELIANCE LIFE INSURANCE:-

Chairman's Profile:

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil

Dhirubhai Ambani is the chairman of all listed companies of the Reliance ADA

Group, namely, Reliance Communications, Reliance Capital, Reliance Energy,

Reliance Natural Resources and Reliance Power. He is also Chairman of the Board of

Governors of Dhirubhai Ambani Institute of Information and Communication

Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice

Chairman and Managing Director in Reliance Industries Limited (RIL), India's largest

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private sector enterprise. Anil Dhirubhai Ambani joined Reliance in 1983 as Co-Chief

Executive Officer, and was centrally involved in every aspect of the company's

management.

If we look for examples to prove this quote then we can find many but there is none

like that of Reliance Money. The company which is today known as the largest

financial service provider of India.

Reliance Capital has interests in asset management and mutual funds, life and general

insurance, private equity and proprietary investments, stock broking,

depository services, distribution of financial products, consumer finance and other

activities in financial services. Reliance Mutual Fund is India's no.1 Mutual Fund.

Reliance Life Insurance is India's fastest growing life insurance company and among

the top 4 private sector insurers. Reliance General Insurance is India's fastest growing

general insurance company and the top 3 private

Sector insurers.

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

fortunes as did the founder of Reliance, Sh. 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.

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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 an 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 patronized 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.

Throughout this amazing journey, Dhirubhai always kept the interests of the

ordinary shareholder uppermost in mind, in the process making millionaires out of

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many of the initial investors in the Reliance stock, and creating one of the worlds

largest shareholder families.

ABOUT RELIANCE:-

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the

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 Capital Limited (RCL) is a Non-Banking Financial Company

(NBFC) registered with the Reserve Bank of India under section 45-IA of the

Reserve Bank of India Act, 1934.

Reliance Capital sees immense potential in the rapidly growing financial

services sector in India and aims to become a dominant player in this industry and

offer fully integrated financial services. Reliance Life Insurance is another step

forward for Reliance Capital Limited to offer need based Life Insurance solutions

to individuals and Corporate.

MARKETING STRATREGIES OF THE COMPANY:-

SOME OF THE STRATEGIES ADOPTED BY RELIANCE LIFE INSURANCE

COMPANY:-

Reliance Life Insurance plans to tap Reliance Communications' 2.5-crore .Telephony

subscriber base to market its products. The company is considering a series of options

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to leverage its relationship with Reliance Communications. However, a joint product

or a co-branded solution would require approval from the Insurance Regulatory and

Development Authority Customers of R World, the information and entertainment

portal of

Reliance Communications would also be able to pay premiums through a bank

account, provided the bank is listed on the network. Reliance Life Insurance officials,

however, offered no comment when asked whether there would be an arrangement for

payment of commission to Reliance Communications. As an alternative channel for

distribution, insurance companies usually tie up with banks. In the case of banc

assurance, where there is a corporate agency tie-up, the commission could range from

5 per cent to 40 per cent

of first-year premium depending on the commission loaded on to the product at the

time of registration with IRDA.

INSURANCE:-

Insurance is basically a sharing device, a tool for managing risk. The losses to assets

caused by unexpected contingencies like fire, earthquake, accidents, etc. are met out

of a common pool contributed by a large number of persons who are exposed to

similar risk. This contribution is known as premium, is used to pay the losses suffered

by the unfortunate few. The concept of insurance is based on certain principals.

1. The contingency of the insured event should be fortuitous in nature, i.e. beyond

human control.

2. The insured should not make any profit out of it.

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It requires a large number of insured to make the principal of insurance work, based

on law of profitability.

Business of insurance is related to the protection of the economic value of assets. The

asset would have been created through the efforts of the owner, in the expectation

that, either through the income generated there from or some other output, some of his

needs would be met. However, if the asset gets lost earlier, being destroyed or made

non-functional, through an accident or other unfortunate event, the owner and those

deriving benefits there from suffer.

The business of insurance done by insurance companies (called insurers) is to bring

together persons with common interests (sharing the same risks) collecting the share

or contribution (called premium) from all of them, and paying out compensations

(called claims) to those who suffer.

PURPOSE AND NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed, through accidental

occurrences. Such possible occurrences are called perils, Fire, floods, breakdown,

lightning, earthquakes, etc, are perils. If such perils can cause damage to the asset, we

say that the asset is exposed to that risk. Perils are the events. Risks are the

consequential losses or damages. The risk to a owner of a building, because of the

peril of an earthquake, may be a few lakhs or few crores of rupees, depending on the

cost of the building and the contents in it.

The risk only means that there is a possibility of loss or damage. The damage may or

may not happen. Insurance is relevant only if there are uncertainties. If there is no

uncertainty about the occurrence of an event, it cannot be insured against. In the case

of a human being, death is certain, but the time of death is uncertain, In the case of a

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person who is terminally ill, the time of death is not uncertain, though not exactly

known. He cannot be insured.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The

peril cannot be avoided through insurance. The peril can sometimes be avoided,

through better safety and damage control management. Insurance only tries to reduce

the impact of the risk and the owner of the assets and those who depend on that asset.

It only compensates the losses and that too, not fully.

Only economic consequences can be insured. If the loss is not financial, insurance

may not be possible. Examples of non economic losses are love and affection of

parents, leadership of managers, sentimental attachments to family heirlooms,

innovative and creative abilities, etc.

CONTRACT OF LIFE INSURANCE

Life insurance contract is an agreement that the insurer will pay a sum of money,

called the sum assured, on the happening of a specified event, usually the death of the

assured or his survival to the end of the specific term. On the other hand, the assured

will pay an immediate smaller payment or a series of regular smaller payments, called

premium.

There are two important legal aspects of life insurance worth nothing.

UTMOST GOOD FAITH: A life insurance contract is not just a contract of good

faith, which any commercial transaction is, but it is a contract of utmost good faith.

Since one party to the contract, the assured, knows all the facts which the other party,

the insurer, cannot know despite reasonable efforts. There is a positive duty on the

former to voluntarily disclose, accurately and fully, all facts material to the risk being

proposed. A fact is considered material if it would influence the judgment of a prudent

insurer in deciding whether to insure a particular risk, or the terms on which to insure

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it. For instance the existing of other life insurance policies is a material fact. The

impact of unlimited duty to; disclose is mitigated to some extent by sec. 45 of

insurance act. Which requires the following to be proved by the insurer in order to

avoid the contract

1 That a material fact was either misrepresented or not disclosed by the policy

holder.

2 That such a misrepresentation or non disclosure by the policy holder was in his

knowledge.

3 That it was done fraudulently

INSURABLE INTEREST: It is the relationship of the insured with the subject

matter (assured) which is recognized in law and gives a legal right to insure that

person. Thus a person is presumed to have unlimited insurable interest in his own life.

There are other presumptions of insurable interest, for example a person having

insurable interest on the life of his or her spouse. A parent is also presumed to be

having insurable interest on the life of her child. Except those, insurable interest is

limited to the financial loss a person might suffer due to the loss of the subject matter.

Thus insurable interest of the creditor on the life of the debtor will be limited to the

outstanding loan and interest thereon.

TYPES OF INSURANCE

Life insurance

Non-life insurance or General insurance

These insurance are provided both by government and private insurance companies.

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The IRDA Act, 1999 amending the Insurance Act, 1938 in Section 2 sub-section 7(a)

state:

Indian Insurance Company means any Insurer being a company-

(a) which is formed and registered under Companies Act, 1956(1 of 1956);

(b) in which aggregate holding of equity shares by a foreign company either

by itself or through its subsidiary companies or its nominees do not exceed

26% paid up equity capital of such Indian Insurance Company;

whose sole purpose is to carry on life insurance business or general insurance

business or re-insurance business.

The important activities of a life insurance company are:-

a) Procuring from prospective buyers proposals to grant life insurance cover;

b) Checking up and specifying the terms of acceptance called Understanding;

c) Issue contractual documents called policy incorporating various terms and

condition;

d) Provide after sales services including payment of money as per contract;

e) Conducting other supporting activities like, investment of funds, carrying out

solvency measures, finalization of accounts, getting or causing audit of

accounts, actuarial valuation including updating mortality tables; and

f) Developing new products, sales promotion activities including publicity,

training of its personal (Sales/ administration).

ROLE OF INSURANCE IN DEVELOPMENT OF THE ECONOMY

Every rupee invested in life insurance contributes in three ways to the

development of the economy.

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Firstly, it relieves those insuring from the worry and anxiety they may have

about how they or their family would meet the cost of certain events, such as

the marriage of the children, the premature death of the main income

provider or maintaining a regular income in their retirement. If an individual

is free from these worries he can perform better in his job.

i. Secondly, it directs peoples savings. The insurer invests these funds

in various business enterprises, government bonds, loans to public and

private projects including infrastructure and socially orientated

projects. Thus the insurance premium provides the much needed funds

for the development of the nations economy.

ii . Thirdly, these savings act as an anti inflationary force in the nations

financial structure. Inflation happens when prices of good go up. One

iii. of the causes is when a lot of buying takes place, due to the spending

of a major portion of income by people. Savings in insurance reduce

buying, as people will have less money to spend.

NEED FOR LIFE INSURANCE

Life is unpredictable. But in face of adversity, our responsibilities towards our parents,

children and loved ones need not be compromised. Insurance planning equips you to

smooth out the uncertainties and adversities that life might send your way, so that the

best that life has to offer, secure in the knowledge that your beloved ones are well

provided for.

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As life insurance became more established, it was realized what a useful tool it was

for a number of situations, including

a) Temporary needs/ threat

The original purpose of life insurance remains an important element, namely

providing for replacement of income on death etc., typically the case of the

breadwinner dying an early death.

b) Regular Saving

Providing for ones family and oneself, as a medium to long-term exercise

(through a series of regular payment of premiums). This has become more

relevant in recent times as people seek financial independence from their

family.

c) Investment

Put simply, the building up of savings while safeguarding it from the ravages

of inflation. Unlike regular saving products, investment products are

traditionally lump sum investment, where the individual makes a one-time

payment.

d) Retirement

Provision for ones own later years becomes increasingly necessary, especially in a

changing cultural and social environment. One can buy a suitable insurance policy,

which will provide periodical payments in ones old age, generally identified as the

problem of living too long.

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ADVANTAGE OF LIFE INSURANCE

(1) It is superior to the traditional saving Instruments.

As well as providing a secure vehicle to build up savings etc, it provides peace of

mind to the policyholder. In the event of untimely death, of say the main earner in the

family, the policy will pay out the guaranteed sum assured, which is likely to be

significantly more than the total premiums paid. With more traditional savings

instruments, such as fixed deposits, the only return would be the amount invested plus

any interest accrued.

(2) It encourages saving and forces thrift.

Once an insurance contract has been entered into, the insured has an obligation to

continue paying premiums, until the end of the term of the policy; otherwise the

policy will lapse. In other words, it becomes compulsory for the insured to

save regularly and spend wisely. In contrast savings held in a deposit account can be

accessed or stopped easily.

(3) It provides easy settlement and protection against creditors.

Once a person is appointed for receiving the benefits (nomination) or a transfer of

rights is made (assignment), a claim under the life insurance contract can be settled

easily. In addition, creditors have no rights to any monies paid out by the insurer,

where the policy is written under trust. Under the Married Womens Property Act

(M.W.P Act), the money available from the policy forms a kind of trust which cannot

be attached by judgment creditors.

(4) It helps to achieve the purpose of the Life Assured.

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If someone receives a large sum of money, it is possible that they may spend the

money unwisely or in a speculative way. To overcome this, the person taking the

policy can instruct the insurer that the claim amount is given in installments.

(5) It can be enchased and facilitates quick borrowing.

Some contracts may allow the policy to be surrendered for a cash amount, if a

policyholder is not in a position to pay the premium. A loan, from certain policies, can

be taken for a temporary period to tide over the difficult. Some lending institutions

will accept a life insurance policy as collateral for a personal or commercial loan.

(6) Tax Relief

The policyholder obtains Income Tax rebated by paying the insurance premium. The

specified forms of saving which enjoy a tax rebate, include Life Insurance Premiums

and contributions to a recognized Provident Fund etc., section 10 (10D) & other sub-

sections of Section 80C of the Income Tax Act 1961.

WHAT DOES LIFE INSURANCE HAVE TO OFFER?

Life insurance is many different things to many different people. For some, it is a

premium to be paid on time. For others it offers liquidity since cash can be borrowed

when needed. For the investment-minded, it denotes a constantly growing capital

account and numerous other benefits.

The contractual guarantee is the promise to pay, backed by one of the oldest and most

stably regulated financial industry operating in the Indian sub-continent today.

1) Insurance Buys Time and Money

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People like to refer to life insurance as time insurance, the reason being that life

insurance proceeds are paid to the insured's beneficiaries in case of death. The money

proffered by life insurance helps buy time to adjust to the change of circumstances.

Insurance provides large amounts of cash that will keep the lifestyle for the survivors

the way it was before the insured's death.

2) Insurance Offers Peace of Mind

For the person who buys an insurance policy, it offers absolute and complete peace of

mind. He or she knows that the decision made by him will provide sound benefits in

the future, whether or not the individual may live to see it.

3) Multiple Applications

The future is uncertain for each and every one. No one knows how long he or she will

live. The investment benefit is paid to the insured's beneficiaries after his death or it

can be used during the life as well. Life insurance policy owners can turn to the cash

value of the policy in case of a financial emergency when all avenues are either

blocked or denied.

4) Enduring Elasticity

Since life insurance is flexible enough to serve several needs, the insured can keep

several long-term goals in mind once he or she invests in the insurance plan. The cash

value of the policy can be allocated towards augmenting the monthly income during

the retirement years. Leisure years should be turned into pleasure years. Permanent

life insurance is designed on the concepts of long-term flexibility.

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5) Financial Security

The insurance policy offers contractual guarantees to people looking for peace of

mind when they buy life insurance. Life insurance offers complete financial security.

The purchase of life insurance demonstrates concern for a family's future financial

well being.

6) Regard for Family

The purchase of life insurance clearly displays care and concern for the people the

policy owner loves.

7) Insurance is Safer

No financial institution can do what life insurance does. No industry can back its

products with reserves and surplus as sound as those of the insurance industry.

proof of strength and safety that insurance companies have ensured even under the

most adverse of conditions is a matter of pride for the entire insurance industry. For

generation after generation, life insurance has been acclaimed as the very benchmark

of security against which the other industries are measured.

OPPORTUNITIES FOR INSURANCE COMPANIES

In the now open sector on insurance, the following is what I feel will determine the

success of the company in particular and the industry in general:

A change in the attitude of the population

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Indians have always been wary of employing their hard-earned money in a venture

that will pay them on their death. Insurance has always been used as a Tax saving

tool. No more, no less. It is depend upon the Financial Consultant to educate the

people to secure/insure their future against any unknown calamity and make a shield

around their families and businesses.

An open and transparent environment created under the IRDA.

The reason for this being on the top of our understanding is that when ever we

have seen any sector open up in India there are always grey areas and unsure

policies. These are not exactly what any player, be it Indian or foreign, looks for.

It creates an air of uncertainty in all the decision making process. Insurance as a

sector requires players who are strong financially and are willing to wait for

returns. Their confidence can be bolstered only if there is an open and a

transparent policy guidelines. This will also help the consumers feel safe that the

regulatory is an active one and cares to do everything possible to keep things

under control and help the insurance environment grow maturely.

A well-established distribution network.

To cater to the largest democracy in the world is by no means a cakewalk. Insurance

profits are directly related to number of insured and this is in turn related to the reach.

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Trained professionals to build and sell the product.

It is said that the insurance agent (Financial Consultant) is the best salesman in the

world. He makes you pay, regularly, an amount promising to pay back only on your

death. Thus the players will require an excellent sales team to sell their products in the

now competitive environment.

Encouragement of new and better products and letting the hackneyed ones die out.

This will itself ensure the market grows. And that every class/society gets a product

that best suits them.

SWOT ANALYSIS OF INSURANCE INDUSTRY

STRENGTH;-

1. Best returns with the added advantage of 100% life insurance coverage.

2. Good option for new investors into the market as all the money is invested

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by best fund managers so with less knowledge also they can earn good

returns.

3. Best commission charges paid to the agents which vary from 12% to 40%

which is much higher as compared to mutual funds i.e. , only 22.5%.

WEAKNESS:-

1. RELIANCE LIFE INSURANCE could not able to match LIC in remote areas

services.

2. Misleading facts given by Financial Consultant about the returns of ULIPs.

3. Hidden charges taken by the companies.

4. Less Promotional Campaigns.

OPPORTUNITY:-

1. 80 percent of Indian population is still under insured. So there is a big

opportunity for insurance companies.

2. As the stock market can be under the mark any time so it can bring loss to the

investors but as in ULIPs there is proper mixture of debt securities and Equity

so the loss is incurred during dark trading days also.

3. Unit-linked products are exempted from tax and they provide life insurance.

4. Increasing consumer awareness about Insurance and its use.

THREAT:-

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1. Cannibalism within the industry by providing misleading figures to the investors.

2. Govt.s instability has a long term repercussions affecting companys policies and

its growth.

LIFE INSURANCE IN INDIA

The history of life insurance in India dates back to 1818 when it was conceived as a

means to provide for English Widows. Interestingly in those days a higher premium

was charged for Indian lives than the non-Indian lives as Indian lives were considered

more risky for coverage.

The Bombay Mutual Life Insurance Society started its business in 1870. It was the

first company to charge same premium for both Indian and non-Indian lives. The

Oriental Assurance Company was established in 1880. The General insurance

business in India, on the other hand, can trace its roots to the Triton Insurance

Company Limited, the first general insurance company established in the year 1850 in

Calcutta by the British. Till the end of nineteenth century insurance business was

almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance

Companies Act of 1912 and the provident fund Act of 1912. Several frauds during

20's and 30's sullied insurance business in India. By 1938 there were 176 insurance

companies. The first comprehensive legislation was introduced with the Insurance Act

of 1938 that provided strict State Control over insurance business. The insurance

business grew at a faster pace after independence. Indian companies strengthened

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their hold on this business but despite the growth that was witnessed, insurance

remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and

provident societies under one nationalized monopoly corporation and Life Insurance

Corporation (LIC) was born. Nationalization was justified on the grounds that it

would create much needed funds for rapid industrialization. This was in conformity

with the Government's chosen path of State lead planning and development.

The (non-life) insurance business continued to thrive with the private sector till 1972.

Their operations were restricted to organized trade and industry in

large cities. The general insurance industry was nationalized in 1972. With this, nearly

107 insurers were amalgamated and grouped into four companies- National Insurance

Company, New India Assurance Company, Oriental Insurance Company and United

India Insurance Company.

These were subsidiaries of the General Insurance Company (GIC).

Life insurance business in India was nationalized with effect from 1 st September,

1958. From this date, the life insurance business transacted by 154 Indian life insurers,

the Indian business of 16 foreign insurers and 75 provident societies was

taken over by Government of India Act, 1956, passed by the Parliament on 18-6-56.

The Life Insurance Corporation of India (LIC) which had been established i.e. 19-5-

1956 as a body corporate having perpetual succession and common seal with power to

acquire, hold and dispose property and to sue and be sued in its name.

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Under Section 30 of the Act, from the appointment date i.e. 1-9-56, LIC acquired the

exclusive privilege of carrying on life insurance business in India and the certificate of

registration granted to any insurer under the Insurance Act, 1938 ceased to have effect

from the said date.

Now the above, provision of section 30 have been altered by insertion of Section 30A

consequent to the enactment of the IRDA Act, 1999. As a result the exclusive

privilege given to the LIC has been withdrawn.

The Government of India liberalized the insurance sector in March 2000 with the

passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting

all entry restrictions for private players and allowing foreign players to enter the

market with some limits on direct foreign ownership. Under the current guidelines,

there is a 26 percent equity capital for foreign partners in an insurance company.

There is a proposal to increase this limit to 49 percent.

The opening up of the sector is likely to lead to greater spread and deepening of

insurance in India and this may also include restructuring and revitalizing of the

public sector companies. In the private sector 14 life insurance companies have been

registered. A host of private Insurance companies operating in both life and non-life

segments have started selling their insurance policies since 2001.

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

(IRDA)BACKGROUND

A faster development and wider impact of the insurance industry were to be achieved

through a process of insurance reforms resulting in the liberalization of the market and

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in the passage of the Insurance Regulatory and Development Authority (IRDA) Act,

1999. The reforms procedures recognized simultaneously the need for development of

the sector in addition to the traditional concept of regulation and thus conferred on the

Authority the obligation to develop the sector as well.

MISSION STATEMENT

The IRDA main mission was stated as follows:

To protect the interest of and secure fair treatment to policyholders:

To bring about speedy and orderly growth of the insurance industry, for the

benefit of the common man, and to provide long terms funds for accelerating

growth of the economy;

To set, promote, monitor and enforce high standards of integrity, financial

soundness, fair dealing and competence of those it regulates:

To ensure that insurance customers receive precise, clear and correct

information about products and services and make them aware of their

responsibilities and duties in this regard;

To ensure speedy settlement of genuine claims, to prevent insurance frauds

and other malpractices and put in place effective grievances redressed

machinery;

To promote fairness, transparency and orderly conduct in financial markets

dealing with insurance and build a reliable management information system to

enforce high standards of financial soundness amongst market players;

IRDA POWERS AND FUNCTIONS

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Subject to the provisions of IRDA Act (1990), IRDA will: regulate, promote and

ensure orderly growth of the insurance business and re-insurance business, which

will include the following main functions (excerpts):

Issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration;

Protection of the interest of the policy holders in matters concerning assigning

off policy, nomination by policy holders, insurable interest, settlement of

insurance claim, surrender value of policy and others terms and conditions of

contracts of insurance;

Specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents.

Promoting and regulation professional organizations connected with the

insurance and re-insurance business;

Levying fees and other charges for carrying out the purposes of the Act;

Calling for information from, undertaking inspection of, conducting enquiries

and investigations including audit of the insurers, intermediaries, insurance

intermediaries and other organizations connected with the insurance business;

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Specifying the percentage of life insurance and general insurance business to

be undertaken by the insurer in the rural or social sector.

IMPACT OF LIBERALIZATION

The introduction of private players in the industry has added to the colors in the dull

industry. The initiatives taken by the private players are very competitive and have

given immense competition to the on time monopoly of the market LIC. Since the

advent of the private players in the market the industry has seen new and innovative

steps taken by the players in this sector. The new players have improved the service

quality of the insurance. As a result LIC down the years have seen the declining phase

in its career.

The market share was distributed among the private players. Though LIC still holds

the 75% of the insurance sector but the upcoming natures of these private players are

enough to give more competition to LIC in the near future. LIC market share has

decreased from 95% (2002-03) to 81 %( 2004-05).The following companies has the

rest of the market share of the insurance industry

SPECIAL PROVISIONS

The Income Tax Act and Life Insurance policies

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Under Section 10(10D), any sum received under a Life Insurance policy (not being a

Key Man policy) is also exempt from taxation. But it is wise to remember that

Pensions received from Annuity plans are not exempted from Income Tax.

Section 80C provides a deduction up to Rs.1,00,000/- to an individual

assesses for any amount paid as a premium.

POLICYHOLDERS GRIEVANCES

Policyholders may have complaints against insurers either in respect of their policies

or their claims. As per Regulations for Protection of policyholders interests, 2002,

every insurer should have in place, a grievance redressal system to address the

complaints of policyholders. The IRDA has a Grievance Redressal Cell which plays a

facilitative role by taking up complaints against insurers with the respective

companies for speedy resolution. The IRDA however does not adjudicate on

complaints.

INDIAN INSURANCE INDUSTRY

Insurance industry, as on 1.4.2000, comprised mainly two players:

Life Insurers:

Life Insurance Corporation of India (LIC)

General Insurers:

General Insurance Corporation of India (GIC)

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GIC had four subsidiary companies, namely (with effect from Dec'2000, these

subsidiaries have been de-linked from the parent company and made as independent

insurance companies.

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited,

3. National Insurance Company Limited

4. United India Insurance Company Limited.

Yr: 2000-2001: (From 2nd April '2000 to 31st December'2001)

Insurance Industry in the year 2000-2001 had 16 new entrants, namely:

Life Insurers:

S.No. Reg.

Number

Date of Reg. Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance Company

Ltd.

2 104 15.11.2000 Reliance insurance Insurance Co. Ltd.

3 105 24.11.2000 Reliance Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance

Limited

5 109 31.01.2001 Reliance Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited.

8 114 02.08.2001 ING Vysya Life Insurance Company

Private Limited

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9 116 03.08.2001 Bajaj Allianz Life Insurance Company

Limited

General Insurers :

S.No. Registration

Number

Date of

Registration

Name of the Company

1 102 23.10.2000 Royal Sundaram Alliance

Insurance Company Limited

2 103 23.10.2000 Reliance General Insurance

Company Limited.

3 106 04.12.2000 IFFCO Tokyo General

Insurance Co. Ltd

4 108 22.01.2001 TATA AIG General

Insurance Company Ltd.

5 113 02.05.2001 Bajaj Allianz General

Insurance Company Limited

6 115 03.08.2001 ICICI Lombard General

Insurance Company Limited.

Yr: 2001-2002 : (From 1st Jan 2001 to Dec. 2002)

Insurance Industry in this year, so far has 5new entrants; namely

Life Insurers:

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S.No. Reg.

Number


1 121 03.01.2002 AMP Sanmar Life Insurance Company

Limited.

2 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.

General Insurers :

S.No. Registration

Number

Date of

Registration

Name of the Company

1 123 15.07.2002 Cholamandalam General

Insurance Company Ltd.

2. 124 27.08.2002 Export Credit Guarantee

Corporation Ltd.

3. 125 27.08.2002 HDFC-Chubb General

Insurance Co. Ltd.

Yr: 2003-2004: (From 1st Jan 2003 till Date)


Life Insurers:

S.No. Registration

Number

Name of the Company

1 127 Sahara India Insurance Company Ltd.

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Yr: 2004-2005:


Life Insurers:

S.No. Registration

Number


1 128 17.11.2005 Shriram Life Insurance Company

Ltd.

PROTECTION OF THE INTEREST OF POLICY HOLDERS

IRDA has the responsibility of protecting the interest of insurance policyholders.

Towards achieving this objective, the Authority has taken the following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide

for: policy proposal documents in easily understandable language; claims

procedure in both life and non-life; setting up of grievance redressal machinery;

speedy settlement of claims; and policyholders' servicing. The Regulation also

provides for payment of interest by insurers for the delay in settlement of claim.

The insurers are required to maintain solvency margins so that they are in a position to

meet their obligations towards policyholders with regard to payment of claims.

It is obligatory on the part of the insurance companies to disclose clearly the benefits,

terms and conditions under the policy. The advertisements issued by the insurers

should not mislead the insuring public.

All insurers are required to set up proper grievance redress machinery in their head

office and at their other offices.

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The Authority takes up with the insurers any complaint received from the

policyholders in connection with services provided by them under the insurance

contract.

MARKET SHARE ANALYSIS:-

PARTICULARS 2004-05 2005-06 2006-07

LIC 87.7 71.04 71.44

PRIVATE PLAYERS 12.3 28.96 28.56

growth in market share of private

players

87.7

71.04

12.3

28.96

0

10

20

30

40

50

60

70

80

90

100

2004-05 2005-06

years

market

share(%

LIC

Pvt. Players

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CHAPTER 2

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Channel Development:

Channel development is basically to convince the potential customer to become

advisors. Now these advisors will convince some other people and that how channel is

made. Now the channel development involves a recruitment & selection process,

which a person has to undergo in order to become an advisor.

Reliance insurance has identified individual agents as its primary channel of

distribution. The Company places a lot of emphasis on its selection process. The agent

advisors are trained in-house to ensure optimal control on quality of training.

Reliance insurance invests significantly in its training programme and each agent is

trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA

before beginning to sell in the marketplace. Training is a continuous process for

agents at Reliance insurance and ensures development of skills and knowledge

through a structured programme spread over 500 hours in two years. This focus on

continuous quality training has resulted in the company having amongst the highest

agent pass rate in IRDA examinations and the agents have the highest productivity

among private life insurers. 201 agent advisors have qualified for the Million Dollar

Round Table (MDRT) membership in 2005. MDRT is an exclusive congregation of

the worlds top selling insurance agents and is internationally recognized as the

standard of excellence in the life insurance business.

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Having set a best in class agency distribution model in place, the company is

spearheading a major thrust into additional distribution channels to further grow its

business. The company is using a five-pronged strategy to pursue alternative channels

of distribution. These include the franchisee model, rural business, direct sales force

involving group insurance and telemarketing opportunities, banc assurance and

corporate alliances.

Recruitment and selection of insurance advisors

As we know that Recruitment involves seeking and attracting a pool of people, from

which qualified candidates for the job vacancies can be chosen. Recruitment sets out

the necessary stages to clarify what kind of person is required, where he/she might be

found and how to make right choice.

Recruitment of life insurance agent is also a very impressive criterion because in this

process we need to recruit and select those persons who bear some special

characteristics, which are very necessary to sell insurance. Life insurance is an

intangible product and it needs insurance advisors who are having tremendous skills

to sell an intangible product.

The key to good selection is preparation. So many people are found of their ability to

pick a good sales person and so often, that person is good but not at the particular job

which needs to be done. It is vital to be clear about what job needs doing and what

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kind of person would do it best; and then to find that person. Once the plan has been

decided, the choice of candidate should be made carefully.

The effectiveness of the unit manager is dependent to great extent on the effectiveness

of the team of advisors supporting him, because an advisors works under a unit

manager. So it is very important to recruit a very good team of life insurance advisors

who can give their best to increase the effectiveness and the profit of the company.

RELIANCE give very much stress on it and to recruit only those

people as a life insurance advisor who is having some key skills specifies by the

company.

Further we will show the recruitment and selection procedure of life insurance

advisors in Reliance insurance company ltd, and try to analyze whether it is the best

process of recruitment or company can do certain new modifications to enhance their

recruitment processor for the increment of companys effectiveness. From the next

page, we will see the recruitment and selection procedure of life insurance advisors.

BE AN ADVISOR:

Being an insurance advisor aspire to provide state of the art customer services and

opportunities and venues for enterprising people to grow and prosper.

Backed by latest technology, they will offer their customers:-

1. Complete and diversified product portfolio.

2. Faster and more accurate service.

3. Multi channel distribution system.

4. High quality financial advisers.

Eligibility norms provided by IRDA for becoming an insurance advisor

1. Person should be at least 18 years of age;

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2. Person have completed 10+2;

3. Person should attain 100 hours training.

Other than this the person should possess

1. Good communication skills

2. Relationship skills

3. Confidence

4. Self motivation

5. Persuasion

6. Urge to be financially independent

BEING AN ADVISOR WITH RELIANCE INSURANCE

Being a Reliance Insurance advisor can be an enriching and exciting career option.

Its an opportunity to associate with an industry leader, be in touch with the latest and

finest insurance practices from around the globe, and grow both personally and

professionally.

Here are some of the benefits of being a Reliance Insurance Advisor:

o Unlimited earning potential .

o A clear career path .

o All round support through exclusive advertising, your own in-house

consultant, and world-class training .

o A comprehensive benefit package.

What does it take to be a Reliance Insurance advisor?

At Reliance Insurance, we believe that our Advisors are our ambassadors to the

customers. They are a key source of business for the organization, and are the

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continuing link with our clients. That is why, we take a lot of care in recruiting and

developing our advisor force, so that we continue to set higher standards of quality in

service and salesmanship. To cater to the needs of the knowledge-oriented

marketplace, we look for graduates who are service-oriented, good communicators

and enjoy meeting new people. Prior sales experience is an added benefit.

Some of the qualities we seek are:

1. self- motivation

2. a master communicator

3. a go-getter

4. a graduate

TRAINING

At Reliance Insurance, we understand the importance of training in a dynamic

business environment. Our advisors go through both generic and specific, professional

programs that help them remain well-informed and knowledgeable about the

companys products in the market. There is a further focus on soft skills such as

communication, managing long-term relationships and selling skills, which are very

relevant in a service-driven industry like life insurance.

State of the art infrastructure training facilities coupled with an excellent faculty,

guarantee an exceptional learning environment. For advisors who might be occupied

with their daily business/professional routines, Reliance Insurance also offers

convenient training options such as online and self-learning are also provided by the

organization.

An 18-day training schedule covers the mandatory IRDA training requirements and

Reliance Insurance product-training module. Revision session ensure that the

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candidates thoroughly understand the course contents and are well prepared for the

licensing examination.

Theoretical training is interspersed with practical appointment settings with potential

customers, giving advisors a feel of how their business will work from the very first

day. All through, the Agency Manager and the management provide continuous

support to the advisors in achieving independence towards garnering business.

CAREER

At Reliance Insurance, career development is emphasized upon from the very day the

advisor joins the system. Though individual meetings with his or her manager, the

advisor can discuss various issues related to business development and career

enhancement. Expectations from the organization in terms of chalking a career in the

insurance industry are also discussed.

OPPORTUNITIES FOR BEING AN ADVISOR

To be a part of world class sales team

Work from your office or residence

Work fulltime or part time

Earn commission, bonuses and incentives

Flexible career

Unlimited earning potential

ROLE OF AN ADVISOR

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An insurance advisor plays an important role. He is link between the insurance

company on the one hand and the prospect on the other hand. He has to understand the

life insurance needs of the prospect and offer to meet them by providing insurance

solution in the form of companys product. In your role an insurance advisor, unless

you are convinced of your self-worth, you may not be effective in your professional

pursuit. The question arises whether an insurance advisor is a professional like a

doctor, a lawyer or a chartered accountant. There are four basic requirements for any

vocation to be called a profession:

It requires acquisition of expertise on the part of its practitioner and also its

updating.

There has to be customer-orientation, so that the focus of the professional is on

satisfying the needs of the customer and his own needs get satisfied if the

customer is satisfied.

Certain of ethics in dealing with clients, fellow-professionals, etc, have to be

observed.

The vocation should be noble in that it contributes to the society.

THE REQUISITES OF A TIDE AGENCY/ADVISOR IN RELIANCE

1. One copy of date of birth proof (10 th mark sheet).

2. One copy of 12th class/graduation mark sheet.

3. One residence proof.

4. 8 passport size photographs.

5. PAN Card.

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ADVISOR QUALITY PARAMETER

We have to identify right kind of quality people to be advisors with ICICI PRU. For

this purpose I targeted the following sets of people:

1. CA, CS, ICWA

2. DOCTORS

3. LAWYERS

4. TAX CONS

5. MARKETING EXECUTIVES OF DIFFERENT BANKS

6. UNEMPLOYED

7. RETIRED PEOPLE

8. HOUSE WIVES

9. LOCAL POLITICIANS

TECHNIQUES USED IN RECRUITMENT

To approach the above mentioned people I used the following methods:

1. PROSPECTING: I decided to do prospecting in front of the BANKS AND

FINANCIAL INSTITUTIONS as a large number of marketing executives visit

these places throughout the day. I used to meet these people and offer them to

join the INDIAS leading PVT. Sector group ICICI as FINANCIAL

ADVISORS. I got the maximum recruitments through prospecting. The best

thing about prospecting was that at the end of the day I used to have more than

100 references to call for the next day.

2. COLD CALLING : It was also a very successful technique in recruitment of

advisors. Though the conversion rate was very low but I got very potential

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advisors through cold calling. I used business directories, yellow pages,

telephone directories, news papers for the same purpose.

3. TAKING REFRENCES : Taking references is very essential in the insurance

business as this business is based on contacts. I took references from the

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4. following:

5. PAMPHLET DISTRIBUTION: I distributed pamphlets at Railway Stations,

Bus Stops, busy red lights, highlighting the advantages of being an advisor

with RELIANCE INSURANCE. I got a good response and call backs and was

able to find some good prospects through this procedure.

CORPORATE MISSION

To set the standard in helping our customers manage their financial future.

NAMES

RELATIVESFRIEND

S

NEIGHBOURSCUSTOME

S

DATABASE

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BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY RELIANCE LIFE

INSURANCE

INSURANCE PLANS AVAILABLE

1. Products (Individual Plans)

Savings (Endowment)

2. Reliance Endowment Plan

(formerly Divya Shree)

3. Reliance Special Endowment Plan

(formerly Subha Shree)

4. Reliance Cash Flow Plan

(formerly Dhana Shree)

5. Reliance Child Plan

(formerly Yuva Shree)

6. Reliance Whole Life Plan

(formerly Nithya Shree)

Pensions

7. Reliance Golden Years Plan

(formerly Bhagya Shree)

Investments

8. Reliance Market Return Plan

(formerly Kanaka Shree)

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9. Risk / Protection

10. Reliance Term Plan

(formerly Raksha Shree)

Products (Group / Corporate Plans)

11. Risk (Protection)

Reliance Group Term Assurance Policy

(formerly Group Term Assurance Policy)

Reliance EDLI Scheme

(formerly EDLI Scheme)

12. Pensions

a. Reliance Group Gratuity Policy

(formerly Group Gratuity Policy)

b. Reliance Group Superannuation Policy

(formerly Group Superannuation Policy)

13. Reliance Money Guarantee Plan

Tax Benefits

INCOME TAX

SECTION

GROSS ANNUAL

SALARY

HOW MUCH TAX

CAN YOU SAVE?

RELIANCE LIFE

INSURUANCE PLAN

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Sec. 80C Across All income

Slabs

Upto Rs. 33,990

saved on

investment of

Rs. 1,00,000.

All the life insurance

plans.

Sec. 80 CCC Across all income

slabs.

Upto Rs. 33,990

saved on

Investment of

Rs.1,00,000.

All the pension plans.

Sec. 80 D Across all income

slabs

Upto Rs. 3,399

saved on

Investment of

Rs. 10,000.

All the health insurance

riders available with the

conventional plans.

TOTAL SAVINGS

POSSIBLERs37,389

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under

Sec. 80 D, calculated for a male with gross annual income

exceeding Rs. 10,00,000.

2.3 Reliance Policies

(1) Reliance Children Plans

What could make you happier than knowing, that your child's future is secure?

Nothing, we suppose. Which is why, Reliance Life Insurance brings to you Reliance

Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free,

subject to the conditions laid down therein.

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Secure Child Plan, a unit-linked Insurance Plan, that gives you the freedom to enjoy

today with your child, because his tomorrow is in safe hands.

Do you see your child becoming a trailblazer?

Will they create the ultimate symphony or give sports a new dimension?

Our children may just be the ones to end the arms race and wipe out poverty from

the face of the Earth. But for them to be able to aim for the skies, YOU NEED TO

ACT NOW!

Introducing Reliance Secure Child Plan - a unique life insurance cum savings plan.

secure the future of your child.

Key FeaturesInsurance cover on the life of child

Your child is completely protected - we will continue to pay the

premiums even if you are not alive

Life time income to child in the event of disability

Return Shield option to protect your investment returns

Liquidity in the form of partial withdrawals

Capital guarantee available on maturity and on death of the child for

basic and top-up premiums

Option to package with Accidental Death and Total and Permanent

Disablement Rider, Critical Conditions Rider and Term Life Insurance

Benefit Rider.

(2)Reliance Health + Wealth Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT

PORTFOLIO IS BORNE BY THE POLICYHOLDER.

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There are times when late working hours take precedence over your health check-ups.

And there are times when a visit to the doctor seems more important than dividends

on your shares. In the rat race to make money, we often forget to take care of

ourselves.

We understand this predicament. Here is a plan that will ensure that your wealth keeps

increasing constantly and yet your health does not take a backseat. The Reliance

Wealth Health Plan. A plan that gives you the benefits of wealth & health.

Life changes. And as it does, so do your priorities. After all, the circumstances of your

life can determine the type of health coverage you need.

India has made rapid strides in the health sector. Since Independence, life expectancy

has gone up markedly and survival rates have also increased, still critical health issues

remain. Infectious diseases continue to claim a large number of lives.

Reliance Wealth + Health Plan, a health insurance plan underwritten by Reliance Life

Insurance Company Limited, is designed to work in conjunction with contributions

towards savings.

Key FeatureA Unit Linked plan with Unique Savings ComponentTwin benefit of market linked return and health protectionChoose from two different plan optionsFlexibility to take care of your familys healthFlexibility to switch between funds / plan optionsOption to pay Top-ups

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(3) Reliance Pension Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT

PORTFOLIO IS BORNE BY THE POLICYHOLDER.

Retirement means different things to different people, while some want to relax and

take a trip around the world, some want to start up a venture of their own, and pursue

a dream harnessed for years. The power to make your autumn years special lies only

with you. The Reliance Super Golden Years Plan gives you the power and the right

kind of solution - A retirement plan that allows you to save systematically and

generate the much-needed corpus to make your olden years look golden.

Key Features

Invest systematically and secure your golden yearsA flexible unit-linked pension product that is different from traditional life

insurance products with Vesting Age between 45 & 70 yearsEight different investment funds to choose fromFlexibility to switch between fundsOption to pay Regular, Single as well as Top-up premiumsFlexibility to advance / extend your Vesting AgeTax free commutation up to one third of Fund Value at Vesting Age

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(4) Reliance Whole life insurance policy

Youve always loved your family. As a loving person you want to be rest assured that

they will be happy, even if something were to happen to you. With Reliance Whole

Life Plan you can be sure that your family will receive that timely financial support

they need.

Go ahead, live your today to the fullest, without a worry about tomorrow.

CHAPTER 3

Key Features

Insurance protection till age 85

Choice of extending your insurance coverage till age 99Convenient Premium Payment TermWealth creation through bonus additionsMore value for your money by way of High Sum Assured Rebate Get Sum

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RE SEARCH DESIGN

INTRODUCTION:-

A Research Design is the framework or plan for a study which is

used as a guide in col lecting and analyzi ng the data collected. It is the

blue print that is followed in comp leting the stud y. The basic objective

of research cannot be attained without a proper research design. It

spec ifies the methods and procedures for acquir ing the information

needed to conduct the research effectiv ely. It is the overall

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operational patte rn of the project that stip ulates what information

needs tobe collected, from which sources and by what methods.

OBJECTIVES OF STUDY

The main purpose of the training is to get the corporate exposure so as to know that

how the work is done in the company so as to bridge the gap between the academic

institution and corporate world.

It exposes us to technical skills that how the tele-calling is done to get

appointments and helping us to acquire social skills by drawing us into the contact

with real professionals.

It is a vehicle for introducing us to real-life situation, which cannot be

stimulated in classroom.

To know how the recruitment of the financial consultants is done.

To know how one can do personal financial planning.

To know the mindset of the customers about insurance their reactions and

many more.

The research design is of exploratory type as it tries to explore the customers

perception to make a reasonable comparison between the two companies.

NON-PROBABILITY:

EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature.

The sources of information are both primary & secondary.

A well-structured questionnaire was prepared and personal interviews

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were conducted to collect the customers perception and buying behavior,

through this questionnaire.

RESEARCH METHODOLOGY

METHODS OF COLLECTING DATA:

The method of data collected was personal interaction, telephonic interview,

observations of the existing appraisal system of Reliance life insurance

The data so far collected or provided is secondary as total tele-calling was done on an

already existing data for financial planning and to become company s certified

financial consultant. But directories are also used to find out the contacts.

TYPE OF DATA COLLECTED

There are two types of data used. They are primary and secondary data.

Primary data is defined as data that is collected from original sources for a specific

purpose. Secondary data is data collected from indirect sources.

PRIMARY SOURCES

These include the survey or direct communication with employees and questionnaire

method, telephonic interview as well as the personal interview methods of data

collection.

SECONDARY SOURCES

These include books, the internet, company brochures, product brochures, the

company website, newspaper articles etc.

SAMPLING METHODOLOGY

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Sampling Technique:

Initially, a rough draft was prepared keeping in mind the objective of the research. A

pilot study was done in order to know the accuracy of the Questionnaire. The final

Questionnaire was arrived only after certain important changes were done. Thus my

sampling came out to be judgmental and convenient

Sampling Unit:

The respondents who were asked to fill out questionnaires are the sampling units.

These comprise of employees of MNCs, Govt.Employees, Self Employed etc.

Sample size:

The sample size was restricted to only 100, which comprised of mainly people from

different regions of Lucknow due to time constraints.

Sampling Area :

The area of the research was Lucknow, India.

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CHAPTER 4

DATA ANALYSIS

Selection and Placement of Insurance Advisors

A selection system is a set of successive screens at any of which an applicant may be

dropped from further consideration. The process of selection of insurance advisors

differs from companies to companies depending upon the requirement. In RELIANCE

the applicant goes through various stages, the chances of selection get better as more

and more stages are cleared.

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Selection procedure: The following selection procedure is used by for the selection of

life insurance advisor in Reliance insurance company.

o Preliminary interview: In this interview the applicant have face-to-face

interaction with the respective Unit Manager and clear out all queries and

doubts about job. After this interview session, the prospects give his

conformation whether he is interesting to join the organization or not.

o Formal application: After the confirmation of the prospects the next step is to

filling up of application form with the submission of all necessary documents

that are listed below:

--Birth certificate (10 th class passing certificate, driving license,

etc)

--Address proof (ration card, voter card, telephone bill, etc)

--6 passport size color photographs

--Highest qualification certificates (mark sheet)

--A demand draft of Rs. 610 on the favor of Reliance

insurance.

After checking the form and all documents the operations department give its

confirmation that the prospects is genuine and is subject for further process.

o Declaration of date of training and venue: After the previous step, operation

department give the details about the details about training date and about the

venue of the training. The training is a necessary part of the selection

procedure. This training is under the curriculum of Insurance Regulatory And

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Development Authority (IRDA). The duration is 100 hours and it can be get

in one ways:

Full time training (10;00 AM to 05;00 PM)

o Testing: After completing the training conducted by IRDA, a test is conducted

on the same venue. This test is taken based on the training and contains the

syllabus, which is prescribed by the IRDA. The test and previous training is

necessary for every body that wants to become an insurance advisor.

o Issue of license: After passing out the test conducted by IRDA, a license is

issued from the IRDA. This license is the proof for the insurance advisor and

an advisor can start his work just after getting this license. Getting the license

is the last step in selection process.

o Assignment to the Unit Manager: The following advisor is assigned to a unit

manager to whom he has to report about his work and about any query

concerning about insurance and about the company.

The above are the following steps which are use to select an insurance

advisors/agents. The license issued by the IRDA is the only authorized power. This

gives the person a right to do insurance. This license is supported to renew after every

three years.

ANALYSIS AND INTERPRETATION:

Q.1 From which insurance company are you insured?

CHART 1:

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Analysis:-

60 people of the respondents are more or less with their LIC policy.

14 people of the respondents are more or less with their Reliance policy.

10 people of the respondents are more or less with their HDFC POLICY

In this case all of those who have taken a policy have responded.

Q.2 GENDER CLASSIFICATION OF SURVEYED RESPONDENTS

CHART 2:

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Analysis:

Total number of male respondents 60

Total number of female respondents 40

Q.3 CUSTOMER PROFILE OF SURVEYED RESPONDENTS

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Analysis:

43% of the respondents are working professionals,

23% are students and 18% are into business. Therefore the target market

would be working individuals in the age group of 18 25 years having

surplus income, interested in good returns on their investment and saving

income tax.

Q.4 INSURED PERCENTAGE

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Chart 4:

ARE

13%

87 % of respondents were insured on own life and on life of their family

members.

So we had 13 % of potential customers to approach.

Q.5 POPULAR LIFE INSURANCE PLANS

CHART 5 :

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Analysis:

Money back Policies have been most popular and also the endowment

plans.

As people today are more aware about financial planning, so people of the

age 30 years have planned for their Retirement now.

ULIPs are fast gaining popularity as they provide investment

benefit with Insurance.

Q.6 ARE YOU AWARE ABOUT FINANCIAL PLANNING ?

TYPE OF PLAN

29%

23%

28%

20% MONEY BACK

ENDOWMENT

PENSION PLAN

ULIPs

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98%

NOOFPEOP

LE

D

F

Analysis

98% of the respondents were aware about Financial Planning

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Q.7 CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM.

Analysis:

41% of the respondents would be willing to spend between Rs. 10001 Rs.

25000 for life insurance. 27 % would be willing to spend between Rs. 6001

Rs. 10000 per annum. Only 15% would be willing to spend more than Rs.

25000 per annum as life insurance premium.. Hence to capture a larger part of

the market the company could introduce more reasonable plans with lesser

premium payable per annum.

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Q.8 FACTORS THAT MOTIVATE RESPONDENTS TO PURCHASE

INSURANCE

Analysis:

33% of the respondents purchase life insurance to secure their families

33% take life insurance to get high returns

17% purchase insurance on the advice of their friends

13% purchase insurance because of the influence of advertisements. They can

invest their money in the equity market, debt market, money market or a

combination of these. The debt and money markets usually have low risk

attached whereas the equity market is a high risk investment option.

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Q9. MINIMUM EXPECTED RETURN ON INVESTMENT

Analysis:

18% of the respondents would like 16 20% returns,

17% would like returns between 21 25% and 17% would like returns of 11

15% on their investments. Therefore the average return on investment should

be at least 16 20 %.

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Q.10 DATA GIVES PEOPLES PERCEPTION ON APPROPRIATE AGE

FOR BUYING INSURANCE?

Analysis:

29% of the respondents are with the view that insurance

should be bought after the age of 25 years.

10% of the respondents are with the view that insurance should

be bought after the age of 35 years.

Whereas, 60 of the respondents are with the view that buying

of insurance do not have any thing to do with age i.e. there is no age

limitations. It can be purchased any time according the

need.

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FINDINGS

From the above analysis it can be concluded that the competition is very tough even in

the procurement and retention of potential advisors (in the channel development

process). Reliance is the market leader in the life insurance market of private players

and data show that it is giving stiff competition to Reliance Insurance Company.

1. As the people think that insurance is a tool to protect their family & a tax saving

device. They are aware of the fact & realizing its, importance. The company should

try to expand & build up its infrastructure because there is a large potential for

insurance in India.

2. Company should come up with its more branches in India. With the objective and

goals to meet the demands & expectations of the public.

Because the entrance of private players will increase the competition and it would be a

tough task to secure a good position in market.

3. Since Reliance Life Insurance is leading with several companies policies it should

be easy for them to penetrate into the market and secure a good position if they pay

greater attention to the service part provided to their customer and thereby forming a

long and trusted relationship.

4 .As seen from the survey that at present 70% of the customer are having insurance

policy out of which 87.5% of the customer are planning for new investments. So it can

be a good p

bipin relaince project totla comp hrd bound

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