Recruitment financial advisors

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  • 1. SUMMER TRAINING PROJECT REPORT ON Recruitment of Financial Advisors In Reliance Life Insurance Towardspartialfulfilmentof MasterofBusinessAdministration(MBA) (AffiliatedtoU.P.TechnicalUniversity,Lucknow) Guidedby Submitted by Mrs.RUCHI AGNIHOTRI RINKAL Session2013-14 DepartmentofManagement BabuBanarasiDas NationalInstituteofTechnology&Management Sector1,AkhileshDasnagar,FaizabadRoad,Lucknow(U.P.),India

2. 1 3. 2 ACKNOWLEDGEMENT I am thankful to management of Reliance Life Insurance company limited for granting the permissions, corporation and valuable information for preparation of this project. No words are enough to thank Mrs,Ruchi Agnihotri who not only inspired me to work on this project but also guide me to prepare it. In spite of heavy responsibilities and busy schedule, she always managed time to provide proper guidance. I am also thankful to Mr, Dhiraj Gupta(Manager) who guide, encourage and help me to do this project. Last but not the least; I would like to say that all my friends and well-wishers for giving me constant support and valuable suggestions to translate my ideas into reality. Rinkal 4. 3 5. 4 PREFACE 6. 5 7. 6 Executive Summary Identifying different profiles of the people and giving them an additional source of income to join Reliance Life Insurance as a Financial Advisor. A market survey was done on life insurance companies. Different questions regarding the companies training program for advisor, top 5usps, training centers etc. were asked. The areas covered up in this survey were Civil lines and .Azad nagar. The report contains details of different life insurance companies, which are in healthy competition of Reliance Life Insurance. In todays era, the insurance industry is one of the most booming sectors. India itself has population of 1-12 billion out of which roughly 33.2 % people are insured. This clearly shows that most of the people are not insured just because they dont know much about insurance. Most people have some common queries about life insurance. 8. 7 CONTENTS Acknowledgement Introduction Preface Company Profile Organisation chart Executive Summary Products and Policies Product portfolio Introduction of channel development and recruitment Aims and Objective Specific information of the Organisation Objective of the study Research Methodology Competitive analysis Findings SWOT Analysis Suggestion and Recommendations Limitations Questionnaire Bibliography 9. 8 10. 9 What is life insurance? A policy that will pay a specified sum of beneficiaries upon the death of insured person. An agreement that guarantees the payment of stated amount monetary benefits upon the death of the insured person. Why insurance? Insurance is the protection of life and assets against unforeseen circumstances. Whether it is general accident policy, a Mediclaim policy or a pension policy, an insurance policy helps you to scope with uncertainty and insecurity. Ever though about why you should take an insurance policy. For one, it helps you to hedge risks against unforeseen circumstances and save more. It thats not all, it is: Superior to an ordinary savings plan as it provides full protection against the risk of death. Encourages and forces compulsory savings unlike other savings instruments, wherein the saved money can be easily withdrawn. Provides loan to tie over a temporary difficult phase and is also acceptable as security for a commercial loan. 11. 10 Offers tax relief to policyholder. Hedges risk against uncertainity. For a policy taken under the MWP Act 1874, (Married Womens Property Act), a trust is created for wife and children as beneficiaries. Based on the concept of sharing of losses, the society will benefit as catastrophic losses are spread globally. Who is an Insurance advisor? An advisor is the representative of an insurance company who sells different policies or product to its clients. They have to do financial planning of his clients and sell policies to them. They are paid on the commission basis Who can buy a life insurance policy? Any person above 18 years of age, who is eligible to enter into a valid contract, can go for an insurance policy. Subject to certain conditions, a policy can be taken on the life of a spouse or children. 12. 11 How is a life insurance policy useful? Planning for the financial consequences of a premature death is an essential part of every financial plan. Generally, the consequences are simply too large to ignore and cannot be totally covered with your own resources. Life insurance is nothing but contract with an insurance company under which is insured (purchaser) pays a premium in exchange for coverage of specified issues. Life insurance is protecting your family against the risk of premature death of you (or your spouse). Life insurance planning should consider your familys short term needs (for example, medical expenses) and long-term needs (for example, replacing your income), In course of our life w are accosted by risk-that of failing health, financial losses, accidents and so on. Insurance is mean by which lifes uncertainties are addressed in financial terms. It offers a monetary compensation against those losses. Insurance is considered more as a hedging mechanism rather than a true investment avenue. Life insurance, in particular is essentially acknowledged as mechanism that eliminates risk- substituting certainty for uncertainty primarily by transferring risk from the insured to the insurer. 13. 12 Is life insurance a saving instrument? Life insurance is mainly considered as a saving instrument rather than an investment avenue as it promotes compulsory savings besides reducing tax burden on the policyholder and protects the family of policyholder in the event of unforeseen happening. It is the only saving instrument, which covers risk besides giving tax concession both at entry (premium paid) and exit point. The section 10(D) of the income tax act totally exempts payment of tax on any amount received as bonus against life insurances policies. Types of Insurance Plans Traditional or Unit Linked Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A brief detail of both segments: Unit Linked Insurance Product: ULIPs have gained high acceptance due to attractive features they offer. These include: Flexibility Flexibility to choose Sum Assured. 14. 13 Flexibility to choose premium amount. Option to change level of Premium /Sum Assured even after the plan has started. Flexibility to change asset allocation by switching between funds Transparency Charges in the plan & net amount invested are known to the customer Convenience of tracking ones investment performance on a daily basis. Liquidity Option to withdraw money after few years (comfort required in case of exigency) Low minimum tenure. Partial / Systematic withdrawal allowed Fund Options A choice of funds (ranging from equity, debt, cash or a combination) Option to choose your fund mix based on desired asset allocation 15. 14 Traditional Plans: These are the oldest types of plans available. These plans cater to customers with a low risk appetite. Some of the common features of traditional plans are: Steady Investment Major chunk of investible funds are in debt instruments Steady and almost assured returns over the long term Features Death benefit is Sum Assured + guaranteed & vested bonus Helps in asset creation as they are for a long tenure Premium to Sum Assured ratios are fixed for each plan and age. Generally withdrawals are not allowed before maturity Tax Benefits on Insurance and Pension Life insurance and retirement plans are effective ways of saving taxes. The tax breaks that are available under our various insurance and pension policies are described below: 16. 15 1. Life insurance plans of Reliance Life Insurance are eligible for deduction under Sec. 80C 2. Pension plans of Reliance Life Insurance are eligible for a deduction under Sec. 80CCC. 3. Health insurance plans/riders of Reliance Life Insurance are eligible for deduction under Sec. 80D 4. The proceeds or withdrawals of life insurance policies of Reliance Life Insurance are exempt under Sec 10(10D), subject to norms prescribed in that section. 17. 16 18. 17 ABOUT RELIANCE GROUP Reliance capital The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's largest business house with total revenues of over Rs 99,000 crore (US$ 22.6 billion). The Group's activities span exploration and production (E&P) of oil and gas, refining and marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial services and insurance, power, telecom and infocom initiatives. The Group exports its products to more than 100 countries the world over. Reliance emerged as India's Most Admired Business House, for the third successive year in a TNS Mode survey for 2003. Reliance Group revenue is equivalent to about 3.5% of India's GDP. The Group contributes nearly 10% of the country's indirect tax revenues and over 6% of India's exports. Reliance is trusted by an investor family of over 3.1 million. One out of every four investors in India is a Reliance shareholder. With globally competitive capital and operating cost positions, Reliance Group dominates the rapidly growing Indian market deriving over 80% of its revenues from the domestic market. There was a split in Reliance group in 2005 and it was broken into two separate companies: 19. 18 Reliance Industries Limited Reliance Anil Dhirubhai Ambani Group (ADA Group) Reliance Capital Ltd, a part of the Reliance Anil DhirubhaiAmbani Group, is one of India's leading and most valuable financial services companies in the private sector. The company has interests in asset management and mutual fund; life and general insurance; consumer finance and industrial finance; stock broking; depository services;