project reliance life insurance by

7/29/2019 Project Reliance Life Insurance By

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A

PROJECT REPORT

ON

OVERVIEW OF GROWTH OF RELIANCE LIFE

INSURANCE CO. LTD. IN INDIA

Submitted by

Shashank TyagiROLL NO. 9543539

A summer training Report Submitted in Partial Fulfillment of the

Requirements of BACHELOR OF BUSINESS

ADMINISTRATION (BBA.6THSEM)

(2009-12)

Submitted To: Mr. Piyush Garg

D.A.V (P.G) COLLEGE

MUZAFFARNAGAR

ACKNOWLEDGEMENT


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Working on this project has been highly knowledgeable for me because it

has provided me a complete knowledge about top most private life

insurance company and its working.

A project of this magnitude cannot be completed without the support

of many individuals, who constantly guided, supported and critically

examined the efforts put in to the making of this report.

I must concede that this project would never have been completed

without the support and encouragement of sales managar Mr.

CHOHAN in Reliance Life Insurance Company

I would also like to thank all the faculty members & staff of

marketing area of our institute for their continuous assistance and

useful guidance throughout the making of this report.

I would like to heartly thanks Director Dr. S.C.AGARWAL

I would like to express my sincere gratitude to my parents and friends

for extending their support and guidance in the making of this report.

PREFACE


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A MANAGEMENT GRADUATE WITHOUT PRACTICALEXPERIENCE IS NOT A COMPLETE PERSON

So the practical experience is very necessary for him. The

real market experience makes him to develop

organization managerial ,personal and environment

learning skills.

As an integral part of the curriculum of the BBA student

are required to undergo a practical summer training inan industry. The main objective of this training is to

supplement the student. Theoretical knowledge with

exposure to practical operations of an organization or

industry.

In pursuance of the said required, I head my training in

RELIANCE LIFE INSURANCE COMPANY.

SHASHANK TYAGI

Table of contents


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CHAPTER 1

Introduction of the industry (Industrial Background )

Definitions

CHAPTER 2

Introduction to the company

Board of Director

Organization chart

Vision mission and policy

Product profile

Market share

Competitors

Future prospects and growth

CHAPTER 3

Title of project

Statement of problem

Purpose of study

Objectives of the study

Scope of study

CHAPTER 4

Research methodology


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Hypothesis

Data analysis and analytical model

Field of work

CHAPTER 5

Pictorial diagrams

SWOT analysis

CHAPTER 6

Findings

CHAPTER 7

Limitations

CHAPTER 8

Conclusion

CHAPTER 9

Suggestions and recommendations

CHAPTER 10

Bibliography

Copies of questionnaires

CHAPTER1Introduction of the industry (Industrial Background)


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Definitions

INTRODUCTION TO THE INDUSTRY


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Insurance may be described as a social device to ensure protection of

economic value of life and other assets. Under the plan of insurance, a large

number of people associate themselves by sharing risks attached to

individuals. The risks, which can be insured against, include fire, the perils

of sea, death and accidents and burglary. Any risk contingent upon these

may be insured against at a premium commensurate with the risk involved.

Thus collective bearing of risk is insurance.

Insurance is a contract whereby, in return for the payment of

premium by the insured, the insurers pay the financial losses suffered by

the insured as a result of the occurrence of unforeseen events. The term

"risk" is used to describe the possibility of adverse results flowing from any

occurrence or the accidental happenings, which produce a monetary loss.

Insurance is a pool in which a large number of people exposed to a similar

risk make contributions to a common fund out of which the losses suffered

by the unfortunate few, due to accidental events, are made good. The

sharing of risk among large groups of people is the basis of insurance. The

losses of an individual are distributed over a group of individuals.

DEFINITIONS


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GENERAL DEFINITION

In the words of John Magee, Insurance is a plan by themselves which

large number of people associate and transfer to the shoulders of all, risks

that attach to individuals.

FUNDAMENTAL DEFINITION

In the words of D.S. Hansell, Insurance accumulated contributions of all

parties participating in the scheme.

CONTRACTUAL DEFINITION

In the words of Justice Tindall, Insurance is a contract in which a sum of

money is paid to the assured as consideration of insurers incurring the risk

of paying a large sum upon a given contingency.

CHARACTERISTICS OF INSURANCE

Sharing of risks


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Cooperative device

Evaluation of risk

Payment on happening of a special event

The amount of payment depends on the nature of losses incurred.

The success of insurance business depends on the large number of

people insured against similar risk.

Insurance is a plan, which spreads the risk and losses of few people

among a large number of people.

The insurance is a plan in which the insured transfers his risk on the

insurer.

Insurance is a legal contract which is based upon certain principles

of insurance which includes, utmost good faith, insurable interest,

contribution, indemnity, causas, proxima, subrogation, etc.

The scope of insurance is much wider and extensive.

FUNCTIONS OF INSURANCE

PRIMARY FUNCTIONS

1. Provide protection:- Insurance cannot check the happening of the risk,

but can provide for the losses of risk.


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2. Collective bearing of risk: - Insurance is a device to share the financial

losses of few among many others.

3. Assessment of risk: - Insurance determines the probable volume of risk

by evaluating various factors that give rise to risk.

4. Provide certainty: - Insurance is a device, which helps to change from

uncertainty to certainty.

SECONDARY FUNCTIONS

1. Prevention of losses: - Insurance cautions businessman and individuals

to adopt suitable device to prevent unfortunate consequences of risk by

observing safety instructions.

2. Small capital to cover large risks: - Insurance relives the businessman

from security investment, by paying small amount of Insurance against

larger risks and uncertainty.

3. Contributes towards development of larger industries.

CHAPTER: 2

BOARD OF DIRECTORS

ORGANISATION CHART

VISION , MISSION AND POLICY

PRODUCT PROFILES

MARKET SHARE


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COMPETETORS

FUTURE PROSPECTS AND GROWTH


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INTRODUCTION OF THE COMPANY

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India'slargest private sector enterprise, with businesses in the energy and materials value

chain. Group's annual revenues are in excess of US$ 27 billion. The flagshipcompany, Reliance Industries Limited, is a Fortune Global 500 company and is

the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and

growth of Reliance. Starting with textiles in the late seventies, Reliance pursued astrategy of backward vertical integration - in polyester, fibre intermediates,

plastics, petrochemicals, petroleum refining and oil and gas exploration andproduction - to be fully integrated along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleumrefining and marketing, petrochemicals (polyester, fibre intermediates, plastics

and chemicals), textiles and retail.

Reliance enjoys global leadership in its businesses, being the largest polyester

yarn and fibre producer in the world and among the top five to ten producers inthe world in major petrochemical products.

The Group exports products in excess of US$ 15 billion to more than 100countries in the world. There are more than 25,000 employees on the rolls of

Group Companies. Major Group Companies are Reliance Industries Limited(including main subsidiaries Reliance Petroleum Limited and Reliance Retail

Limited) and Reliance Industrial Infrastructure Limited.

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

of the Reliance - Anil Dhirubhai Ambani Group. The company acquired 100

per cent shareholding in AMP Sanmar Life Insurance Company in August

2005. Taking over AMP Sanmar Life provided Reliance Life Insurance areadymade infrastructure and a portfolio.

AMP Sanmar Life Insurance was a joint venture between AMP, Australia

and the Sanmar Group. Headquartered in Chennai, AMP Sanmar had over

90 offices across the country, 9,000 agents, and more than 900 employees.


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RELIANCE LIFE INSURANCE CO. LTD.

RELIANCE LIFE INSURANCE COMPANY is a joint venture between

RELIANCE bank, a premier financial powerhouse and Prudential Plc., a

leading international financial services group headquartered in the United

Kingdom. RELIANCE was amongst the first private sector insurance

companies to begin operations in December 2000 after receiving approval

from insurance regulatory development authority(IRDA).

RELIANCE's equity base stands at Rs. 8.25 billion with RELIANCE bank

and Prudential Plc., holding 74% and 26% stake respectively. in the half

year ended July 30, 2005, the company garnered Rs. 498 crore of new

business premium for a total sum assured of over Rs. 23,000 crore and had

over 1 million policies. The company has a network of over 40,000

advisors; as well as 7 bank assurance tie-ups. Today, RELIANCE has

emerged as the no. 1 Private Life Insurer in the country, with a wide range

of flexible products that meet the needs of the Indian customer at every step

in life.

RELIANCE offers a variety of policies that give you the benefits of

protection and the opportunity to save for important assets or events, like a

home, a car or a wedding.


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RELIANCE LIFE INSURANCE

RELIANCE LIFE INSURANCE is a joint venture between the

RELIANCE group and Prudential plc, of the U.K. RELIANCE started off

its operations in 1955 with providing finance for industrial development,

and since then it has diversified into housing finance, consumer finance,

mutual funds to being a virtual universal bank and its latest venture life

insurance.

Contact Address :

Reliance Life Insurance Company Limited,

Regd. Office: 9 Cathedral Road,

Chennai 600 086, India.

Ph: 2811 8400 Fax: 2811 7669.

Email : [email protected]
mailto:[email protected]:[email protected]


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BOARD OF DIRECTORS

Chief Executive Officer - Mr. P Nandagopal

Chief Operating Officer - Mr. K.V. Srinivasan

Country Head - Sales & Distribution - Mr. Manoj Singh Chauhan

Chief Financial Officer - Mr. Rajesh Bahl

Appointed Actuary - Ms. Pournima Gupte

Chief Investment Officer - Mr. R Rangarajan

Chief Human Resources Officer - Ms. Maneesha Thakur

Chief Technology Officer - Mr. C Mohan

Chief Operating Officer

Mr. K.V. Srinivasan is the Chief Operating Officer of Reliance Life Insurance

Company Limited.
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In this assignment with Reliance Life Insurance, he heads the Operations,Finance, IT, Legal & Secretarial departments.

Country Head Sales & Distribution

Mr. Manoj Singh Chauhan is the Country Head Sales & Distribution withReliance Life Insurance Company Limited. Manoj is an M.B.A from JiwajiUniversity, Gwalior & Science graduate with more than 12 years of experiencein Sales and Distribution.

Chief Financial Officer

Mr. Rajesh Bahl is the Chief Financial Officer (CFO) of Reliance LifeInsurance Company Limited. In his role as CFO, Mr. Bahl is responsible forthe overall finance and accounts operations.

Mr. Bahl has 12 years of experience in the field of financial planning withexpertise in strategic planning, business controlling, audit and compliance.

Appointed Actuary

Ms. Pournima Gupte is the Appointed Actuary at Reliance Life InsuranceCompany Limited and heads the Actuarial Department.

Appointed Actuary is the position created by the IRDA Act

Chief Investment Officer

Mr. R Rangarajan is the Chief Investment Officer at Reliance Life InsuranceCompany Limited and heads the investment function. The objective of theInvestment team is to give best possible return on investments, keeping in viewthe risk appetite of the Shareholders and Policyholders.

Chief human Resources Officer

Ms. Maneesha Thakur is the Chief Human Resourced Officer at RelianceLife Insurance Company Limited.

In this role, Ms. Thakur is responsible for developing a performance drivenculture and ensuring manpower availability as per budgeted numbers with


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PRODUCT PLANNING

1. Introduction of new product

2. Improvement of new product.

3. Elimination of marginal or non-

Profitable product.

4. Branding

PRICING

1. Profit Margin

2. Sales at different prices.

3. The right price.

PHYSICAL

DISTRIBUTION.

1. Selection of distribution

Channel

2. Logistic of Distribution.

PROMOTION

1. Advertisement

2. Sales force selling

3. Sales promotion.

TARGET CONSUMERS

MARKETING SEGMENTS

MARKETING RESEARCH

required competencies.

Chief Technology Officer

Mr. C Mohan is the Chief Technology Officer (CTO) of Reliance LifeInsurance Company Limited and he is responsible for Information TechnologyStrategy Formulation and Deployment.

Vision of IT: RLIFE IT will continuously devise innovative, Cost effective &proficient solutions, to enable employees to drive business with its optimum

pace & capitalize on latest advances in IT spectrum.

Mr.Mohan has over 10+ years of IT Experience of which he spend more than

ORGANISATION CHART


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VISION MISSION AND POLICY

To make RELIANCE the dominant life and pensions player built on trust

by world-class people and service.

This we hope to achieve by:

Understanding the needs of customers and offering them superior

products and service


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Leveraging technology to service customers quickly, efficiently and

conveniently

Developing and implementing superior risk management and

investment strategies to offer sustainable and stable returns to our policy

holders

Providing an enabling environment to foster growth and learning for

our employees

And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment

to 5 core values -- integrity, customer first, boundary less, ownership and

passion. Each of the values describe what the company stands for, the

qualities of our people and the way we work.

We do believe that we are on the threshold of an exciting new opportunity,

where we can play a significant role in redefining and reshaping the sector.

Given the quality of our parentage and the commitment of our team, there

are no limits to our growth

PRODUCT PROFILE

Reliance Secure Child Plan

Reliance Automatic Investment Plan

Reliance Money Guarantee Plan

Reliance Endowment Plan
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Reliance Special Endowment Plan

Reliance Cash Flow Plan

Reliance Child Plan

Reliance Whole Life Plan

Reliance Golden Years Plan

Reliance Golden Years Plan Value

Reliance Golden Years Plan Plus

Reliance Market Return Plan

Reliance Term Plan

Reliance Simple Term Plan

Reliance Special Term Plan

Reliance Credit Guardian Plan

Reliance Special Credit Guardian Plan

Reliance Connect 2 Life Plan

RELIANCE ENDOWMENT PLAN
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It takes a lot for a dream to become a reality. And money is surely one of them.

Reliance Endowment Plan gives you just the financial independence to realise

your dreams in the future. It lets you decide how much you would like to set asyour sum assured based on your current financial position and your expectedfuture expenses.

Key Features

On maturity receive Sum Assured plus bonuses

Wealth creation through bonus additions

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

Increase your insurance protection by adding Term Cover

Choose to pay regular or single premium

Choose to add the benefit of two riders - Critical Illness Rider andAccidental Death Benefit & Total and Permanent Disablement Rider

Choose to avail of a Policy Loan after three full years of premiumpayment

How does this Plan work?

You pay premium every year for the entire term and get Sum Assured plus

accumulated bonuses at maturity. On death, your Beneficiary will get the SumAssured plus accumulated bonuses.BenefitsMaturity Benefit: On maturity you get Sum Assured plus accumulated bonuses(if any) till that date.

Life Cover Benefit: In the unfortunate event of loss of life, your family willreceive the Sum Assured plus accumulated bonuses (if any) till that date.

Rider Benefit: You also have the option to add three additional benefits tocustomize the Policy as per your needs for the regular premium plan

a. Term Life Insurance Benefit Rider

b. Accidental Death Benefit & Total and Permanent Disablement Rider

c. Critical Illness Rider

Term Life Insurance Benefit Rider Add the advantage of the Term Life Insurance Benefit rider to your basic Policyand increase risk coverage.In the event of unfortunate loss of life the Term Life Insurance Benefit is payableand the amount payable is equal to the rider Sum Assured.

There is no Maturity Benefit.


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Term Insurance

Minimum / Maximum Age

at entry 18 / 59

Maximum Age at expiry64 yrs (policy anniversary immediatelyfollowing age)

Sum Assured Rs 1,00,000Equal to basic policy sumassured

Policy Term Equal to basic policy term

Accidental Death Benefit & Total and Permanent Disablement RiderAccidents are unfortunate and sometimes fatal. You can customise your basicPolicy with an Accidental Death Benefit & Total and Permanent DisablementRider.The Accidental Death Benefit is payable if death occurs directly as a result of anaccident and is intimated within 90 days of the occurrence.The Benefit payable is equal to the Rider Sum Assured. The minimum SumAssured is Rs 25,000 and the maximum under all Policies taken together is Rs50,00,000.The Total and Permanent Disablement Benefit is payable if the Life Assured

becomes totally and permanently disabled directly as a result of an accident.The Disability Benefit is equal to the basic Sum Assured paid in ten equal annualinstallments

Total and Permanent Disablement is defined as the total and irrecoverable loss ofsight of both eyes, or loss by severance of two limbs at or above wrist or ankle, ortotal and irrecoverable loss of the sight of one eye and loss by severance of onelimb at or above wrist or ankle for a period of at least six months.Inbuilt Waiver of PremiumIf the Life Assured becomes totally and permanently disabled, then Reliance LifeInsurance will waive all future premiums under the basic Policy and riders up to a

limit of Rs 40,000 p. a.

RELIANCE WHOLE LIFE PLAN

You always loved your family. As a loving person you also wanted to be restassured in the knowledge that they will be happy, even if something were tohappen to you. With Reliance Whole Life Plan you can be sure that your familywill receive that timely financial support they need.


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

Key Features

Insurance protection till age 85

Choose to extend your insurance coverage till age 99

Convenient Premium Payment Term Wealth creation through bonusadditions


Get Sum Assured plus bonuses in case of your unfortunate death

Option to add two riders Critical Illness and Accidental Death Benefit &Total & Permanent Disablement Rider

Policy Loan available after three full years premium payment


You pay premium every year for the desired Premium Paying Term. You get SumAssured plus bonuses on reaching age 85. You choose to continue with theinsurance cover uptil the age of 99 and the Policy will continue to participate in

profits till then. On death, your Beneficiary will get the Sum Assured plusaccumulated bonuses.Benefits

Maturity Benefit: On attaining age 85 you get Sum Assured plus accumulatedbonuses

Life Cover Benefit: In the unfortunate event of loss of life, your beneficiary willreceive the Sum Assured plus accumulated bonuses till that date.Rider Benefit: You also have the option to add 2 additional benefits to customizethe Policy as per your needs.

a. Accidental Death Benefit & Total & Permanent Disablement Rider

b. Critical Illness RiderAccidental Death Benefit & Total & Permanent Disablement RiderAccidents are unfortunate and sometimes fatal. You can customise your basicPolicy with an Accidental Death Benefit & Total and Permanent DisablementBenefit Rider.The Accidental Death benefit is payable if death occurs directly as a result of anaccident and is intimated within 90 days of the occurrence.The Benefit payable is equal to the Rider Sum Assured. The minimum SumAssured is Rs 25,000 and the maximum under all Policies taken together is Rs50,00,000.The Total and Permanent Disablement Benefit is payable if the Life Assured

becomes totally and permanently disabled directly as a result of an accident.


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The Disablement Benefit is equal to the basic Sum Assured paid in ten equalannual installments

Total and Permanent Disablement is defined as the total and irrecoverable loss ofsight of both eyes, or loss by severance of two limbs at or above wrist or ankle, ortotal and irrecoverable loss of the sight of one eye and loss by severance of onelimb at or above wrist or ankle for a period of at least six months.

RELIANCE MONEY GUARANTEE PLAN

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENTPORTFOLIO IS BORNE BY THE POLICYHOLDER.


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Yes, it's a trio the pace setter plan, which promises Life Protection, an opportunityto gain control over your investments along with protection of downside risk!

For the select few like you, the Reliance Money Guarantee Plan is a Unit Linkedproduct addressing comprehensive need to strike that perfect balance ofProtection and Savings, that you deserve as you grow successfully. The RelianceMoney Guarantee Plan is a Regular Premium Unit Linked Policy whichguarantees the entire premium (including premiums for top- ups) paid by you.This is a plan which helps you reap all the benefits of a rising marketsimultaneously protecting you from the downside risk of the market.

Key Features

Capital Guarantee The sum of all premiums paid is guaranteed on maturity

or on death before the maturity.

Capital Guarantee is available on both the basic premiums as well as ontop-up premiums

Unique Return Shield feature to protect your returns

Choice to invest from 3 pre-packaged investment fund options

Unmatched flexibility through our Exchange Option to move betweenthe Reliance Money Guarantee suite of products offered, as you grow up theladder

Liquidity in the form of partial withdrawals from top-up fund

Option to package with Accidental Death & Disability and TermInsurance riders


The premium contributed by you net of Premium Allocation Charges andMiscellaneous Charge is invested in fund option of your choice for a specified

period of time as selected by you and units are allocated depending on the price ofunits for the fund/funds. The Fund Value is the total value of units that you holdin the fund. The Policy has a minimum Guaranteed Fund Value which is equal to

total of all premiums paid (excluding any additional and extra premiums if any),to be payable on survival to maturity or earlier death. The amount of top-up

premiums paid is also guaranteed on death provided there is no partialwithdrawal. The amount of top-ups premium is guaranteed on maturity providedthe top-ups premium was paid at least 10 years before the date of maturity andthere is no partial withdrawal. The Sum Assured under the Policy is fixed on the

basis of the selected annual premium and Policy Term.The Mortality Charges and Policy Administration Charges are deducted throughcancellation of units whereas the Fund Management Charge is priced in the UnitValue. The premiums for riders, if selected, are payable over and above the

premium for the basic Policy.


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Benefits in Details

Capital Guarantee: The plan offers Capital Guarantee provided the Policy is kept

in full force by payment of due premiums on time.Capital Guarantee under the Basic Plan: Premiums paid under the Basic Plan areguaranteed on the maturity of the Policy or on death during the Policy Term.Capital Guarantee under the Top-Up premiums: Each top-up premium paid isguaranteed on death during the Policy Term provided there are no partialwithdrawals from that top-up.Each top-up premium paid is guaranteed on maturity of the Policy provided thePolicy Term is greater than ten years, there are no partial withdrawals from thattop-up and the top-up was paid ten years before the maturity date.Life Cover Benefit: The amount of Death Benefit depends on the age of the LifeAssured at the time of death

i. If the age of the Life Assured at the time of death is more than 12 yearslast birthday while the Policy is in force, the Company will pay the sum of:

1. Higher of (Sum Assured, Fund Value as on date of intimation of death under Basic Plan, Premiums paid under the Basic Plan excluding any extraor additional premiums paid.)and

2. Higher of (Fund Value as on date of intimation of death under top-ups and top-up premium paid provided no partial withdrawal is made from thattop-up)

ii. However if the Life Assured's age at the time of death is less than or equalto 12 years last birthday while the Policy is in force, the Death Benefit will be thesum of:

1. Higher of (Fund Value as on date of intimation of death under Basic Plan and premiums paid under the Basic Plan excluding any extra oradditional premiums paid)and

2. Higher of (Fund Value as on date of intimation of death under top-ups and top-up premium paid provided no partial withdrawal is made from that

top-up)

iii. The Policy terminates on payment of the Death Benefit.

Maturity Benefit: The Maturity Benefit is the sum of

1. Higher of (Fund Value under Basic Plan and Premiums paid under BasicPlan excluding any extra or additional premiums paid)and

2. Maturity Benefit under Top-UpIf Policy Term is greater than ten years, the Maturity Benefit under top-up is the

higher of ( Fund Value under the top-up and top-up premium paid provided thereis no partial withdrawal from that top-up)


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If Policy Term is ten years, the Maturity Benefit under the top-up is the FundValue under the top-up.

The Policy Terminates on payment of the Maturity Benefit.Sum Assured

The fixed Sum Assured under the Basic Plan will be calculated as the amount ofannual premiums payable for half the Policy TermRider Benefit: You can add Accidental Death & Accidental Total and PermanentDisablement Benefit Rider & Term Life Insurance Benefit Rider.What are the different fund options?

a. Funds available in respect of Basic Plan and top-up premiumThe plan offers three funds for Basic Plan and top-ups - Fund D, Fund E and FundF. You have the option to decide your own fund mix with respect to premiums

under the Basic Plan and top-ups.b. Funds available in respect of Return Shield OptionReturn Shield Fund will be available if Return Shield Option is selected. Thereturns earned under the Basic Plan and top-ups will be transferred to ReturnShield Fund if Return Shield option is selected.

c. Funds available during settlement periodIf you have opted for the settlement option, then Fund C would apply by defaultduring the settlement period.

The Asset Allocation and investment objective of each of the pre-packaged fundsis given below:

Type

of

Fund

Investment

Objectives

Asset

Category

Asset

Allocation

Range

(%)

Target

(%)

Fund

D

The investmentobjective of Fund D isto provide investmentreturns that exceed therate of inflation in thelong term whilemaintaining moderate

probability of negativereturns in the shortterm. The risk appetite

is defined as'moderate'.

MoneyMarketInstruments

0 - 20 0

DebtSecuritiessuch as Gilts,CorporateDebtexcludingMoneyMarket

Instruments

0 - 100 60

Equities 0 - 40 40


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Fund

E

The investmentobjective of Fund E is

to provide, in the longterm, returns which aresignificantly higherthan the inflation rate,through high exposureto equity investments,while recognizing thatthere is some

probability of negativereturns in the shortterm. The risk appetite

is 'moderate to high'.

MoneyMarket

Instruments

0 - 20 0

DebtSecuritiessuch as Gilts,CorporateDebtexcludingMoneyMarketInstruments

0 - 100 50

Equities 0 - 50 50

Fund

F

The investmentobjective of FundF isto provide, in the longterm, returns which aresignificantly higherthan the inflation rate,through high exposureto equity investments,while recognizing that

there is someprobability of negativereturns in the shortterm. The risk appetiteis 'moderate to high'.


0 - 20 0

DebtSecuritiessuch as Gilts,CorporateDebtexcludingMoney

MarketInstruments

0 - 100 40

Equities 0 - 60 60

The Asset allocation and Investment Objective under the Return Shield Fund isgiven below:

Type

of

Fund

Investment

Objectives

Asset

Category

Asset

Allocation

Range

(%)

Target

(%)

Return

Shield

The investmentobjective of theReturn Shield Fund isto provide steadyinvestment returnsachieved through100% investment in


0 - 20 20

GovernmentSecuritiesand'approvedsecurities

0 - 100 40


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Debt Securities, whilemaintaining moderate

probability of negativereturns in the short

CorporateBonds and

other DebtInstruments 0 - 60 40

The Asset Allocation and Investment Objective underFund C is given below:

Type

of

Fund

Investment

Objectives

Asset

Category

Asset

Allocation

Range

(%)

Target

(%)

S The investmentobjective of Fund C isto provide investmentreturns that exceedtherate of inflation in thelongterm whilemaintaining a low

probability of negativereturnsin the shortterm. The risk appetiteis defined as 'low to

moderate'.


0 - 20 0

DebtSecuritiessuch as Gilts,CorporateDebtexcludingMoneyMarketInstruments.

0 - 100 80

Equities 0 - 20 20

Whilst, every attempt would be made to attain target levels prescribed above, itmay not be possible to maintain the prescribed target at all times owing tomarket volatility, availability of market volumes and other related factorsThe target may be attained on a best effort basis. However the Asset

Allocation will always fall within the Asset Allocation Range mentioned inrespect of each fund.

Unit pricing & Cut-off Timings

Value of Units: The computation of Unit Value will be based on whether theCompany is purchasing (Appropriation Price) or selling (Expropriation Price) theAssets in order to meet the day to day transactions of Unit Allocations and UnitRedemptions i.e. the Company shall be required to sell/purchase the Assets if


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Unit Redemptions/Allocations exceed Unit Allocations/Redemptions at theValuation Date.


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SPECIAL ENDOWMENT PLAN

Special Endowment Plan is key to all your financial needs. You get a desiredlump sum after a specified period, however your life insurance protectioncontinues for an extended period. If anything were to happen to you, your

beneficiary will get another sum assured along with the bonuses. The policycomes with an added feature of a limited premium term, which is always 5 years

less than the policy term.

Key Features

Twin benefit of protection and savings

Sum Assured is paid on survival, at the end of the premium paying termLife Cover for full Sum Assured continues beyond premium paying termExtended Life Cover for 5 years after premium paying term

Wealth creation through bonus additions


Choose to add the benefit of two riders Critical Illness Rider andAccidental Death Benefit & Total and Permanent Disablement Rider

Choose to avail of a Policy Loan available after 3 full years of premiumpayment

Policy participates in profits even after premium paying term


You pay premium every year. The premium paying term is always 5 years less

than the Policy term. On survival to the end of the premium paying term you get


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the Sum Assured. On survival, at maturity (i.e. at the end of the policy term)accumulated compounded bonuses are paid.

BenefitsSurvival Benefit: On survival at the end of the premium paying term you get theSum Assured.

Maturity Benefit: On survival to maturity you get accumulated bonuses.

Life Cover Benefit: Your Beneficiary will get Sum Assured plus accumulatedbonuses in case of your unfortunate death at any time during the Policy term. Thislife cover benefit continues even after the payout of Sum Assured after premium

paying term.

Rider Benefit: You also have the option to add 2 additional benefits to customizethe Policy as per your needs

a. Accidental Death Benefit & Total and Permanent Disablement Rider

b. Critical Illness Rider

Accidental Death Benefit & Total and Permanent Disablement RiderAccidents are unfortunate and sometimes fatal. You can customise your basicPolicy with an Accidental Death Benefit & Total and Permanent DisablementRider.The Accidental Death benefit is payable if death occurs directly as a result of anaccident and is intimated within 90 days of the occurrence.The Benefit payable is equal to the Rider Sum Assured. The minimum SumAssured is Rs 25,000 and the maximum under all Policies taken together is Rs50,00,000.The Total and Permanent Disablement Benefit is payable if the Life Assured

becomes totally and permanently disabled directly as a result of an accident.The Disablement Benefit is equal to the basic Sum Assured paid in ten equalannual installmentsTotal and Permanent Disablement is defined as the total and irrecoverable loss ofsight of both eyes, or loss by severance of two limbs at or above wrist or ankle, ortotal and irrecoverable loss of the sight of one eye and loss by severance of one

limb at or above wrist or ankle for a period of at least six months.Inbuilt Waiver of PremiumIf the Life Assured becomes totally and permanently disabled, then Reliance LifeInsurance will waive all future premiums under the basic policy and riders up to alimit of Rs 40,000 p. a.

Accidental Death & Disability Benefit

Age at entry 18 yrs 59 yrs

Age at expiry 25 yrs 64 yrs

Sum Assured Rs 25,000Rs 50,00,000 (subject to a maximum of

basic policy sum assured)

ExclusionsThe Company will not pay any Accidental Death Claim or Total and Permanent


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Disablement claims which results directly or indirectly from any one or more ofthe following:

An act or attempted act of self-injury,

Participation in any criminal or illegal act,

Being under the influence of alcohol or drugs except under direction of aregistered medical practitioner,

Racing or practicing racing of any kind other than on foot,

Flying or attempting to fly in, or using or attempting to use, an aerialdevice of any description, other than as a fare paying passenger on a recognisedairline or charter service,

Participating in any riot, strike or civil commotion, active military, naval,air force, police or similar service, or

War, invasion, act of foreign enemies, hostilities or war like operations(whether war be declared or not), civil war, mutiny, military rising, insurrection,rebellion, military or usurped power or any act of terrorism or violence.

Critical IllnessSudden onset of a major illness causes worries and heavy expenses. Our optionalCritical Conditions Cover helps provide financial relief in such cases. It pays youthe Sum Assured upfront in respect of ten major illnesses.

a. Cancer

b. Coronary Artery Bypass Surgery

c. Heart Attack

d. Stroke

e. Kidney Failure

f. Aorta Surgery

g. Coma

h. Heart Valve Replacement

i. Major Organ Transplant

j. Paralysis

This Benefit can be availed only once against any one of the illnesses and theCompany will not pay the claim if it arises from deliberate self-injury orattempted suicide by the Life Assured, whether sane or insane. This benefit willonly be given, if the diseases are confirmed by a Consultant Physician.

Critical Illness


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Age at entry 18 yrs 55 yrs

Age at expiry 25 yrs 64 yrs

Sum AssuredRs1,00,000

Rs 10,00,000 (subject to a maximum ofbasic policy sum assured)

Minimum

policy term5

ExclusionCancer: any CIN stage (cervical intraepithelial neoplasia); any pre-malignanttumour; any non-invasive cancer (cancer in situ); prostate cancer stage 1 (T1a, 1b,1c); all skin cancers including malignant melanoma stage IA (T1a N0 M0); anymalignant tumour in the presence of any Human Immunodeficiency Virus.Heart Attack:Non-ST-segment elevation myocardial infarction (NSTEMI) with

elevation of Troponin I or T; other acute Coronary Syndromes.Stroke: Transient ischemic attacks (TIA); neurological symptoms due tomigraine.Coronary Artery (Bypass) Surgery: Angioplasty and/or any other intra-arterial

procedures; key-hole surgery.Paralysis: Paralysis due to Guillain-Barr-SyndromeWaiting and Survival PeriodThe Company will not pay the Critical Illness Benefit if:

The critical illness begins prior to or within six months of thecommencement date or date of reinstatement of the Benefit - Waiting Period

Death from critical illness takes place within 30 days of the onset of thesame Survival Period

FlexibilityThese riders may be attached to your Policy at the beginning or at any PolicyAnniversary during the term of the Contract, subject to underwriting conditions

prevailing at that time.Sum assured for Critical Illness Rider may be increased or decreased by thePolicyholder:

The increase is subject to underwriting conditions

Once decreased, further increases will not be allowed

The Contract can be terminated and opted for only once, by the Policyholder atany time. Though above are general conditions of the rider, we may specifyrestrictions (like time of exercise) on the above options. Such restrictions would

be filed along with the based product filing.Sample Illustration:The tables below show the indicative premiums for a Life Assured acrossdifferent Sum Assured and ages for a Policy term of 20, 25 and 30 years.

Age\Term*Sum Assured: 1 Lakh Sum Assured: 3 Lakh Sum Assured: 5 L

20 25 30 20 25 30 20 25

30 7425 5360 4175 21975 15780 12225 36125 25800


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35 7550 5500 4350 22350 16200 12750 36750 26500

40 7740 5730 4630 22920 16890 13590 37700 27650

45 8145 6175 5115 24135 18225 15045 39725 29875

(The premium paying term is 5 years less than the Policy term)

Indicative Maturity Benefit:The table below shows the indicative Maturity Benefits for different Sum Assuredlevels for an individual life across different terms.

Total Maturity Benefit (Rs) @6%*

Total Maturity Benefit (Rs) @10%*

Sum

Assured\Term20 25 30 20 25 30

Rs 100,000 148595 164061 181136 180611 209378 242726

Rs 300,000 445784 492182 543408 541833 628133 728179

Rs 500,000 742974 820303 905681 903056 1046889 1213631

(The above maturity benefits are calculated for an illustrative gross investmentreturn of 6% & 10% as stipulated by IRDA. Please note the figure mentioned in

the table is inclusive of Sum Assured paid at the end of premium paying term andbonuses paid at the end of the Policy term)

What is the Policy Term?

Minimum Policy

Term:10 years

Maximum Policy

Term:40 years

Who can buy this product?Minimum age at

entry:12 years

Maximum age at

entry:65 years

Minimum age at

maturity:22 years

Maximum age at

maturity:75 years

What is the Sum Assured?

Minimum SumAssured:

Rs 25,000


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Maximum Sum

Assured:No Limit

Savings and accumulation through bonuses:The Company will declare compounded reversionary bonus which is payable atmaturity or on death.More value for money High Sum Assured RebateReliance Special Endowment Plan offers an attractive premium discount for Sum

Assured over and above Rs 99,999.For example, as per the tabular premium rates, the annual premium for a 30 yearold male for a 25 year policy for Rs 5 lakh Sum Assured comes to Rs 27,300

before the High Sum Assured Rebate. After the High Sum Assured Rebate, thepremium is Rs 25,800.

Sum Assured Range High Sum Assured Rebate

Rs 100,000 Rs 249,000 Re 1 per 1,000 sum assured

Rs 250,000 Rs 499,000 Rs 2 per 1,000 sum assured

Rs 500,000 Rs 9,99,000 Rs 3 per 1,000 sum assured

Rs 10,00,000 and above Rs 4 per 1,000 sum assured

What happens if I discontinue paying premium?

During the first three years, if premiums are not paid within the grace period thepolicy will lapse.If you discontinue paying premium after paying premium for three full years then

your Policy will be converted into a paid up for a reduced Sum Assureddetermined in the same proportion as the amount of premiums actually paid bearsto the total amount of premiums payable. The life insurance protection willcontinue to the extent of the paid-up value until the end of the Policy term.Any accumulated bonuses attached to this Policy will remain attached in full.Once this Policy becomes paid-up, no further bonuses are payable. You willreceive the paid-up Sum Assured plus bonuses on the maturity date of thePolicy or in the event of loss of life.

What if I want to discontinue the Policy?

We provide you the option to surrender your Policy and receive the Surrender


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Value. If your Policy has accumulated any bonuses, then you will also receive thecash value of that total amount upon surrendering your Policy.

Your plan acquires a Surrender Value after 3 years premium has been paid andafter three years have elapsed from date of commencement of Policy. Weguarantee a minimum surrender value of 30% of the total premiums paid(excluding any extra premiums and premiums for additional benefits) subsequentto the First Year Premium, plus the cash Surrender Value of any vested bonuses.On surrender, the insurance protection provided under the Policy will also cease.


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MARKET SHARE


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SALES FIGURE AND MARKET SHARE

Name of the insurer Gross premium

underwritten (in

% of market share


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crore)

Tata AIG 925 ----

Reliance General 154 9.7Bajaj Allianz 426 ----

Iffco Tokyo 285 ----

Royal Sunderam 229 ----

ICICI Lombard 456 ----

HDFC Chubb 99 1.1348

Cholamandalam 98 ----

National insurance

co.Ltd

3091 21.39

Oriental insurance

co.Ltd

2621 18.13

New India Assurance

co.Ltd

3501 24.22

United Insurance

co.Ltd

2801 19.387

RELIANCE LIFE

INSURANCE LTD.

3084 21.06


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0

500

1000

1500

2000

2500

3000

3500

4000

MARKET

SHARE

INSURANCE

COMPANIES

RELIANCE

LIFE

INSURANCE

TATA AIG

BAJAJ

ALLIANZ

IFFCO TOKYO

ROYAL

SUNDARAM

ICICI

LOMBARD

HDFC CHUB

CHOLAMANDA

LAM

NATIONAL

INSURANCE

LTD.

ORIENTAL

INSURANCE

NEW INDIA

INSURANCE


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COMPETETORS

S.

No

Registrationnumber

Date ofReg.

Name of the Company

1.

101 23.10.2000

HDFC Standard Life InsuranceCompany Ltd.

2.

104 15.11.2000

Max New York Life Insurance Co.Ltd.

3.

105 24.11.2000

ICICI Prudential Life InsuranceCompany Ltd.

4.

107 10.01.2001

Om Kotak Mhindra LifeInsurance Co.Ltd.

5.

109 31.01.2001

Birla Sun Life Insurance CompanyLtd.

6.

110 12.02.2001

Tata AIG Life Insurance CompanyLtd.

7.

111 30.03.2001

SBI Life Insurance Company Limited.

8.

114 02.08.2001

ING Vysya Life Insurance Company

private Limited.

9

.

116 03.08.2

001

Allianz Bajaj Life Insurance Company

Ltd.10.

117 06.08.2001

Metlife India Insurance Companypvt.Ltd.


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General Insurers:

S.

No.

Registration

Number

Date ofRegistra

tion

Name of the Company

1.

102 23.10.2000

Royal Sundaram Alliance InsuranceCompany Limited.

2.

103 23.10.2000

Reliance General Insurance CompanyLimited.

3.

106 04.12.2000

IFFCO Tokio General InsuranceCompany Ltd.

4.

108 22.01.2001

TATA AIG General InsuranceCompany Limited

5.

113 02.05.2001

Bajaj Allianz General InsuranceCompany Limited.

6.

115 03.08.2001

ICICI Lombard General InsuranceCompany Limited.


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Yr: 2006-2007: (From 1st Jan 2006 to till date)

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

Life Insurance:

S.

NO.

Registrati

onNumber

Date of

Registration

Name of Company

1. 121 03.01.2002

AMP SANMAR AssuranceCompany Ltd.

2. 122 14.05.20

02

Aviva Life Insurance Co. India

Pvt.Ltd

FUTURE PROSPECTS AND GROWTH


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CHAPTER 3 Title of project

Objective of study

Scope of study


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TITLE OF PROJECT TECHNIQUES OF RISK MANAGEMENT and PROFIT FROM

INSURANCE MARKET

BENEFITS OF INSURANCE

Saving For unforeseen circumstances

Education For child education and for higher professionalstudies.

Retirement Facilitates adequate saving for worry free retiredlife.

1. Avoiding the Risk: When a company avoids risk, it eliminatesthe possibility that a particular event will occur. To avoid the

possibility of a suit, for example, not to produce with would, ofcourse, eliminate both the threats of a lawsuit and the opportunity to

profit. With rare exceptions, avoiding risk entirely is extremelydifficult.

2. Reducing Risk: A more practical approach is to reduce the riskby taking precautions Risk reduction is an important in mostcompanies approach to risk management. Typical precautions include

putting safety locks on doors to prevent robberies, installing overheadsprinklers to minimize fire damage, and periodic checking motor

vehicles to prevent accident.

3. Assuming risk: Many companies draw on current revenues orset aside a Contingency Fund to cover unexpected losses. Settingaside money on regular basis could be cheaper than purchasinginsurance. Moreover, the company can earn interest on the reservedcash. Such assumption of risk is also called self-insurance or riskretention.


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4. Transferring the risk: Most companies still rely on outsideinsurance firms for financial protection against catastrophic losses. In

buying insurance, companies transfer the risk of an insurance firm,which agree to pay for certain types of losses. In exchange, theinsurance firm collets a fee known as a premium.

MAIN MOTTO:

To sale the different police of the organization and also sale the

different products of the company.

To pursue and recruits the adviser.

To coordinate the adviser and also help them to sale the polices

and also help them in field.

To help in the training programs.

To generate the lead by cold calling.

To understand customers need and advising them to make aportfolio as per their recruitment.

To do sales promotion through road shows canopies, making

cold calling.


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Objectives of the study

The main objectives of the project were as follows:

1. To obtain a genral understinding of the marketing strategy adoptedby reliance life insurance company and to as certain the relationshipbetween effectivness of the profitability and strategy.

2. To obtained and insight of how public relation helps in an insurancecompany.

3. To analys the reasons or adopting reliance life insurance policy .

SCOPE OF STUDY

TARGET MARKET

Different properties dealers.

Lawyers

Travel agencies

Transport business

House wives


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BRIGHT SPOTS

Looking the global trend, the personal line insurance carries fastergrowth potentiality. Further this is a gray area, which has vast scopeands hence Indian insurers should concentrate more on it

Health care product for different segment as per the need of thetarget group should be developed and should be retail through strongmarketing approach.

Focus should made on different segment with specific needs ofthe segment

Saving linked product should be introduced as returns at theend. IC is working to launch such kind of products.

Traditional marketing forces should be supplemented with other

method of marketing. Agent clubs with sufficient and attractivecommission should be set-up.


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POTENTIAL PROSPECTS IN PERSONAL

LINE OF INSURANCE

Population 100 crore

Urban population (1991 census) 27.72 crore

Urban population above the poverty line 17.22 crore

Urban population living in house 15.50 crore

No. Of middle/upper in come group in urban 3.76 crore

Population

Number of middle/upper income household 0.99 Crore

Saving rate 25.6 Crore

Per capita income US $ 29.9

No. Of house hold 1.50 crore

No. Of genuine hospital in India 13629

Total no. Of patient admitted 1 crore

Private house holds expenditure on

Health care 250 per

capita

Total no. Of persons covered insurance

Against Mediclaim 16lac


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ESTIMATED PREMIUM PROJECTION IN

PERSONAL LINE INSURANCE

SL.

NO

TYPE OF

INSURANCE

PER

HOUSE

HOLD

PREMI

UM

PROJECT

ED

NUMBER

ESTIMAT

ED

PREMIU

M PER

ANNUM

01. Mediclaim Rs.500 Rs.1 crore Rs.500crore

02. House hold

insurance

Rs.600 Rs.1.5

crore

Rs.900

Crore

03. Trader/shopkee

per insurance

Rs.700 Rs.5 crore Rs.3500cr

ore

If we analyze the gross direct premium under written in miscellaneousclass in India and potential of the premium as seen in trend shown in the

above table if can well be agreed that India is still a virgin market andpersonal and personal line insurance in India offer an attractive businessopportunity. If these personal line covers are related a market approachwell set market approach, there seems no reason why this untapped

portfolio cannot be explored. The following factors have a bearing onmarket potential on personal line of insurance and this presentenvironment where an attractive marketing strategy can result intodevelopment act high growth in this sector.


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FACTORS FAVORABLE TO PERSONALLINE OF INSURANCE

1. Geographic concentration of middle and upper incomehouseholds in cities and in town

2. Growing middle class population with higher disposableincome. This can be seen in the study conducted by National councilof applied Economics research (NCARE).

3. Increasing traffic congestion and travel exposure creatingenhanced possibilities of accidental injury and death.

4. Rise in medical treatment expense and exposure to diseases dueto increased pollution because of industrializing and urbanization

5. Regular incidence of natural catastrophes, flood, earthquake,cyclone in certain area.

6. Rise in antisocial activities like theft, burglary, riot, murdersetc.

7. Consumer awareness towards the consumer right and trend ofconsumer courts which has forced the procedure, trader to takesufficient risk protection cover against possible liability insurance.The professional, also seeking indemnity covers against their

professional liabilities to third parties.

8. Accumulation of wealth in form of consumer durables like

TV/CR/computer, mobile phone air conditioner, etc. This durable areexposed to break down and other risks.

9. Increase in the saving rate, per capita income and the GDP .Thehouse hold sector contribute 187% of GDP which shows theincreasing paying capacity of the insurable middle class.

CHAPTER 4


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Research methodology

In order to achieve the objective of the project, primary and secondarydata was used. The sources from where the information was obtainedare as follows:-

Primary sources

The data collection was primarily through face-to-face interaction and

conversation with the executives working in the organization. Data was

also collected through consultation with insurance advisors and unit

managers of Reliance life insurance co.

Secondary data

1. Business magazines which includes business today, business India

and business world.

2. Insurance advisors manual and study material on Reliance

3. Newspapers which includes economic times, the financial express

and financial times.

4. Internet was also used to gather the required data.

HYPOTHESIS


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Market gap analysis ofexisting product

perception.

Long-range studies fall outfrom prediction of changingeconomic & socialcondition.

Consumer activity analysis/studying activities to identifyunsatisfied needs.

Learning from overseasexperience/ transferringforeign product.

Competitors copyingthe competition.

Market research locating areaof consumer dissatisfactionwith the current products

NEW

PRODUCT

The leading US based international insurances and financial

services organizations.

The largest underwriter of commercial and industrial

insurance in the US.

Stock holder equity US $5.52 billion.

A history of 80 years.

The most extensive worldwide property casualty and life

insurance network.

Over 80,000emplyes in worldwide.

Operations in approximately 136 counties and jurisdictions

through400 officers.

50 billion customers across the world.

Presence in every major market of the world.


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5. LIFE INSURANCE IN INDIA

Life insurance in its existing form came in India from United Kingdom

with the establishment of British firm, Oriental Life Insurance Company in

1818 followed by Bombay Life Assurance Company in 1823, from Madras

Equitable Life Insurance Society in 1829 and Oriental Life Assurance

Company in 1974. Bombay Mutual Life Insurance Society, an Indian

insurer that came into existence in 1971, was the first to cover Indian lives

at normal rates.

The Indian Life Insurance Company Act 1912 was the first statutory

measure to regulate life insurance business. In 1938, with a view to protect

the interest of insuring public, earlier legislation was consolidated and

amended by Insurance Act, 1938 with comprehensive provisions for

detailed and effective control over the Activities of insurers. the Actuarial

and operational matters relating to the insurance industries were looked

after by an attached office in Shimla, headed first by the Actuary to the

government of India, then by superintendent of insurance and finally by the

controller of the insurance. The Act was amended in 1950, making far

reaching changes such as requirement of equity capital for companies

carrying on life insurance business, ceilings on share holding of such

company and strict control on investment of life insurance company etc.

By 1956, 154 Indian insurers, 16 non Indian insurers and 75 provident

societies were carrying on life insurance business in India. On 19th Jan

1956, the management of life insurance business of 245 Indian and foreign


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insurers and provident societies operating in India were taken over by

central government and nationalized on 1st September 1956. LIC was

formed in September 1956 by an Act of parliament, vij.LIC Act, 1956 with

capital contribution of Rs.5 crores from the government of India.

To render prompt and efficient service to policy holders, the

recommendators of the administrative reforms commission taken into

account are:-

To spread life insurance much more widely in particular to the

rural areas and to the socially and economically to the backward classes.

To make mobilization of people savings and making insurance

linked savings adequately attractive.

To bear in mind, the investment of funds, the primary obligation

to its policy holders whose money it holds in trust without loosing, sight of

interest of the community as a whole.

To conduct business with utmost economy and with full

realization that money belongs to the policy holders.

To Act trustees of insured public in the individual and collective

capacities.

To meet various life insurance needs of the community that

would arise in the changing social economic environment.


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CHAPTER : 5

SWOT ANALYSIS:

SWOT AnalysisDiscover new opportunities.Manage and eliminate threats.

SWOT Analysis is a powerful technique for understanding your Strengths andWeaknesses, and for looking at the Opportunities and Threats you face.

Used in a business context, it helps you carve a sustainable niche in your market.Used in apersonal context, it helps you develop your career in a way that takes

best advantage of your talents, abilities and opportunities. Clickhere for BusinessSWOT Analysis, here for Personal SWOT Analysis.

Business SWOT Analysis

What makes SWOT particularly powerful is that, with a little thought, it can helpyou uncover opportunities that you are well placed to take advantage of. And byunderstanding the weaknesses of your business, you can manage and eliminatethreats that would otherwise catch you unawares.
http://www.mindtools.com/pages/article/newTMC_05.htm#businesshttp://www.mindtools.com/pages/article/newTMC_05_1.htmhttp://www.mindtools.com/pages/article/newTMC_05.htm#businesshttp://www.mindtools.com/pages/article/newTMC_05_1.htm


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More than this, by looking at yourself and your competitors using the SWOT framework,you can start to craft a strategy that helps you distinguish yourself from your competitors,

so that you can compete successfully in your market.

How to use the tool:

To carry out a SWOT Analysis, print off our free worksheet (why not do it now, and try thetechnique out?) and write down answers to the following questions

Strengths:

What advantages does your company have?

What do you do better than anyone else?

What unique or lowest-cost resources do you have access to?

What do people in your market see as your strengths?

What factors mean that you "get the sale"?

Consider this from an internal perspective, and from the point of view of your customersand people in your market. Be realistic: It's far too easy to fall prey to "not invented heresyndrome". (If you are having any difficulty with this, try writing down a list of your

characteristics. Some of these will hopefully be strengths!)

In looking at your strengths, think about them in relation to your competitors - forexample, if all your competitors provide high quality products, then a high quality

production process is not a strength in the market, it is a necessity.

Weaknesses:

What could you improve?

What should you avoid?

What are people in your market likely to see as weaknesses?

What factors lose you sales?
http://www.mindtools.com/pages/article/newTMC_05.htmhttp://www.mindtools.com/pages/article/newTMC_05.htm


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Opportunities:

Where are the good opportunities facing you?

What are the interesting trends you are aware of?

Useful opportunities can come from such things as:

Changes in technology and markets on both a broad and narrow scale

Changes in government policy related to your field

Changes in social patterns, population profiles, lifestyle changes, etc.

Local Events

A useful approach for looking at opportunities is to look at your strengths and askyourself whether these open up any opportunities.

Alternatively, look at your weaknesses and ask yourself whether you could openup opportunities by eliminating them.

Threats:

What obstacles do you face?

What is your competition doing that you should be worried about?

Are the required specifications for your job, products or serviceschanging?

Is changing technology threatening your position?

Do you have bad debt or cash-flow problems?

Could any of your weaknesses seriously threaten your business?

Carrying out this analysis will often be illuminating - both in terms of pointingout what needs to be done, and in putting problems into perspective.

Strengths and weaknesses are often internal to your organization. Opportunitiesand threats often relate to external factors. For this reason the SWOT Analysis issometimes called Internal-External Analysis and the SWOT Matrix is sometimescalled an IE Matrix Analysis Tool.


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You can also apply SWOT Analysis to your competitors. As you do this, you'llstart to see how and where you should compete against them.

DISTRIBUTION

RELIANCE has one of the largest distribution networks amongst private

life insurers in India, having commenced operations in 69 cities and towns

in India. These are: Agra, Hyderabad, Ajmer, Allahabad, Amritsar,

Aurangabad, Bangalore, Bareilly, Bhatinda, Bhopal, Bhubhaneshwar,

Calicut, Chandigarh, Chennai, Coimbatore, Dehradun, Durgapur,

Faridabad, Goa, Guntur, Gurgaon, Guwahati, Gwalior, Hyderabad, Hubli,

Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal,

Kochi, Kolkata, Kolhapur, Kota, Kottayam, Lucknow, Ludhiana, Madurai,Mangalore, Meerut, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi,

Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Salem, Siliguri, Surat,

Thane, Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vapi, Varanasi,

Vashi, Vijayawada and Vizag.

The company has seven banc assurance tie-ups, having agreements with

RELIANCEbank, federal bank, south Indian bank, bank of India, Lord

Krishna Bank and some co-operative banks, as well as over 160 corporate

agents and brokers. It has also tied up with organizations like DHAN for

distribution of salaam zindagi, a policy for the socially and economically

underprivileged sections of society.


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RELIANCE has recruited and trained about 50,000 insurance advisors to

interface with and advise customers. Further, it leverages its state-of-the-art

it infrastructure to provide superior quality of service to customers.

7. MY JOB at Reliance

WHAT DID I DO AND HOW

I was hired by the company as a trainee for two months. For the first two

days, the company gave me training and knowledge about the two products,

which had to be sold. I belonged to a team of 10 trainees, which was

headed by a team leader.

My job was to work as per my team leaders instructions.

My team leader had many corporate contacts and thus he used to take

appointments from the H.R.Manager of those corporate and send me to

them at the given time.

My job was to catch hold of the employees of those companies and explain

them the policy, which suited to their needs and salary package. Sometimes

a formal meeting with the employees was also arranged and I used to

explain the policy in that meeting.

After this, I used to fill up the form for the people who wanted to buy any

policy. Most of the people used to show interest but wanted time to think. I

used to take their contact nos. for follow up.


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RELIANCE branches visited by me:

-Sector 13, rohini, New Delhi

-B3, Janakpuri, New Delhi

-E Block, Connaught Place, New Delhi

A Few Of The Companies Visited By Me:

-Jindal, Connaught Place

-Cognosis Software, Noida

-Air Sahara, Palam Airport

-Punj Lloyd, Nehru Place

-Punj Lloyd, Okhla

-HCL, Gurgaon

-Saffron, Gurgaon

-Alok Auto, Manesar, Haryana

-Hughes Software, Gurgaon

HOW THE MONEY GROWS

Considering, a customer invests rs.10, 000/- for 10 years and rate of return

considering 9% (taking 9% hypothetically)

1st year - 10,000 + 9% = 10,900

2nd year - 10,900 + 10,000 + 9% = 22,781

3rd year - 22,781 + 10,000 + 9% = 35,731

4th year - 35,731 + 10,000 + 9% = 49,847

5th year - 49,847 + 10,000 + 9% = 65,233

6th year - 65,233 + 10,000 + 9% = 82,004


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7th year - 82,004 + 10,000 + 9% = 1,00,284

8

th

year - 1,00,284 + 10,000 + 9% = 1,20,210

9th year - 1,20,210 + 10,000 + 9% = 1,41,929

10th year- 1,41,929 + 10,000 + 9% = 1,65,602

This chart is without considering the charges that get deducted from the

premium of Rs.10, 000/- paid by the customer each year.

HOW DOES IT SAVE TAX

Considering the customers annual income as Rs.2 lakhs

Incase the customer does not take the plan: -

Total income = 2,00,000

Less- standard deduction = 30,000

Taxable income = 1,70,000

Tax slab

0 -50,000 = nil

50,000 60,000 = 1,000

60,000 1,50,000 = 18,000

1,50,000 1,70,000 = 6,000

Total tax = 25,000

Incase the customer takes the plan: -


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Total income = 2,00,000

Less-standard deduction= 30,000

Taxable income = 1,70,000

Less-80 ccc(1) = 10,000

Net taxable income = 1,60,000

Tax slab

0 -50,000 = nil

50,000 60,000 = 1,000

60,000 1,50,000 = 18,000

1,50,000 1,60,000 = 3,000

Total tax = 22,000

So, we can see that if a customer goes for this plan he can save a tax of

(25,000-22,000) i.e. Rs.3,000/- and in the same manner people earning

more than Rs.8.5 lakhs p.a. can save Rs.3,300/-

The next page shows the ready reckoner or the pamplet, which i used to

give or distribute to the prospective customers. This page tells the

customers about the features of the plan and also gives them a hypothetical

figures of the accumulated and annuity amount as per their present age,

retirement age and term of the policy.


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To convert a Life Time Pension II policy, the customer has to fill a few

other documents along with the form and a signed cheque.

Those other documents are as follows:-

Age proof declaration (incase the customer does not have a valid age

proof at that very moment)

Electronic Clearing System (ECS) form (incase the customer wants

to pay the premium in monthly mode)

Declaration form (compulsory for all)

So, now you can see all the documents in the following sequence:-

Form

Age proof declaration

ECS form

Declaration form


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2. LIFE TIME

Main features:-

Minimum investment rs.18,000/- p.a.

Life insurance upto 10 times the annual premium

Premium amount qualifies for exemption u/s 88

All withdrawls from the policy after 3 years qualify for

exemption u/s 10(10d)

Choice of investment plan according to risk-return profile

Enjoy the benefit of 4 free switches in an year

Top up your policy with your idle funds

Premium holiday option which means that if you miss out

the payment of the subsequent premium after 3 years the policy does

not lapse

Allocation of bonus units after 4

th

, 8th

, and 12th

policy year

Loan available against the policy after it has acquired the

surrender value

Surrender value of the policy is 100% after 3 policy years

Flexibility to withdraw the entire amount after 3 completes

year of the policy


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HOW DOES IT SAVE TAX

If gross total income before deductions is Rs.1 lakh to Rs.1.5

lakhs then tax rebate is 20% of investment made under sec.88. So if the

investment is Rs.18,000/-,then the tax savings is Rs.3,600/-

If gross total income before deductions is more than Rs.1.5

lakhs but less than Rs.5 lakhs then tax rebate is 15% of investment made

under sec.88. So if the investment is Rs.18,000/-, then the tax savings is

Rs.2,700/-

People whose gross total income before deductions is more than

Rs.5 lakhs, are not eligible for tax savings under sec.88.

Documents needed to convert this policy :-

All the documents needed for this policy are the same as Life Time Pension

II policy. Only the form of the policy is different from that of Life Time

Pension II policy .

So, the form of this policy is there as the next page.


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8. CUSTOMERS RESPONSE

During the training of 2 months, I observed a different response from each

customer. No two customers were the same. But if we talk about some

general and common responses, then those were as follows:-

First and foremost was customers unfriendly attitude towards

the private company. Most of them could not think beyond LIC. So LIC

is a big threat for private companies but even then RELIANCE has

taken enough business from LIC in very short span of time.

Most of the customers wanted time to think and discuss with

their colleagues and chartered accountants before saying yes or no.

Customers also wanted the lock in period of their money to be

minimal.

Most of the customers wanted a detail comparison of my

product with other companies product.

Some of the customers were totally unaware of sec. 80 ccc or

sec. 88

Some customers were also very friendly and liked the policy .

They signed up for the policy then and there and also made their friends

sign up for the same


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9. FREQUENTLY ASKED QUESTIONS

(FAQS)

1. How Do I Make A Maturity Claim?

You must send us the:

Completed claim form

Policy of life assurance

Proof of age, if not submitted earlier

2. TO WHOM IS MY DEATH CLAIM AMOUNT PAID?

The death claim is paid to:

The nominee, as declared by you in the proposal form

The legal heirs, in case you have not specified the nominee

The appointee named by you, in cases where the nominee is a

minor at the time of claim

3. HOW DOES THE NOMINEE/LEGAL HEIR MAKE A DEATH

CLAIM ?

The claimant (nominee/legal heirs) must send us


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An intimation of the death of the life assured

Death certificate

Completed claim forms and other forms as required by the

company

Policy of life assurance

Identification that the person is entitled to receive thepayment

4. WHAT ADDITIONAL REQUIREMENTS ARE THERE FOR AN

ACCIDENT CLAIM?

In addition to the requirements for a death claim, the claimant should

submit all the reports (police, hospital etc) pertaining to the accident as

required by the company.

5. WHAT ADDITIONAL REQUIREMENTS ARE THERE FOR A

DISABILITY CLAIM?

You must send us within 6 months of the disability date

Written notification of your disability arising out of the

accident

Proof of your disability

You will have to undergo one or more medical examinations conducted

by medical practitioner/s appointed by us, if required.


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6. WHAT CONDITIONS APPLY TO A POLICY LOAN?

A loan is given only if you have an RELIANCEPRU Save'n'Protect

policy .

If your policy has a surrender value, you can apply for apolicy loan upto 80% of the surrender value. This loan will carry

an interest rate as decided by the company from time to time. The

interest will be charged starting from the date of the loan. You can

repay the interest and the loan at any time.

If the total outstanding amount owed to us under your policy

exceeds the surrender value, your policy terminate immediately.

The outstanding loan and interest will be deducted from the claim

amount at the time of settlement.

7. HOW DO I SURRENDER MY POLICY?

If premiums are paid for at least three consecutive years, the policy

acquires a surrender value. The policy , which has acquired a surrender

value, can be surrendered for payment in cash. Once the policy is

surrendered the contract is terminated. In the case of RELIANCEPRU

single premium bond the policy can be surrendered after the first year.


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8. HOW DO I REVIVE MY POLICY THAT HAS LAPSED?

If your policy has lapsed on account of non-payment of premium

within the specified due date, you can re-apply to reinstate it, if:

You apply within 5 years from the date of the first unpaidpremium and before the maturity date

You pay all the required premiums and interest

You give us satisfactory evidence of health at your own

expense

The reinstatement will take effect only if we accept your application.

We will notify our acceptance to you.

9. WHAT IS NOMINATION OF THE POLICY?

Section 39 of the Indian insurance Act 1938 provides for nomination of

a person who would receive the benefits of the claim on the death of

the life assured. Nomination establishes a clear title to the policy . This

prevents dispute and also prevents delay in settlement of a death claim.

in the case where nomination has not been given at the time of

proposal, nomination can be made at any time during the term of the

policy . Nomination can also be changed, at any time during the tenure

of the policy , by intimating us at RELIANCE


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10. CAN I CHANGE MY NOMINATION?

Yes. You can change your nomination at any time till the maturity date. All

you need to do is to inform us about the change through a specified form.

11. HOW DO I NOTIFY MY CHANGE IN ADDRESS?

You can call our customer service center or notify us through a letter

about the change of address. We shall confirm the change to you.

12. WHAT IF I FORGET TO MAKE PAYMENT?

We offer you a grace period for non-payment on due date. This grace

period is 30 days from the due date in case premium payments are

made on quarterly, half-yearly or yearly basis. it is 15 days from the

due date for monthly payments. During this period the policy remains

in full force and no interest is charged. if you fail to pay a premium

even during the grace period, your policy automatically:

Lapses if there is no surrender value

Converts to a paid up policy if there is enough surrender

value

13. WHAT IF I LOSE MY POLICY ?

You can apply for a duplicate policy document. To get this document,

you will have to send us a letter stating the circumstances under which

the policy was lost.


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14. CAN I ASSIGN A POLICY?

The policy can be assigned. To assign the policy you have to notify us

regarding the assignment.

10.SELF LEARNING

Insurance market / industry

How to do financial planning

How to plan the tax savings

Team work

Learnt some managerial skills

Learnt professionalism

Increased convincing power

Improved selling skills

Overall personality development


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CONCLUSION

As such privatization through liberalization is an opportunity to be

exploited, not necessarily a threat. For continuous growth Indian insurance

companies will need the flexibility to ascertain and respond to customers

needs. Insurance service will no longer be just bought, it will have to be

sold in a buyers market, new channels of marketing personal insurances

like over the counter covers will have to be devised. The insurance industry

cannot afford to lose sight of its ultimate raison detre-service to a public in

need of an efficient competitive method of protection against unforeseen

losses.


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SUGGESTIONS

The insurance sector of I