reliance life insurance company
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Industrial Project Report
RELIANCE LIFE INSURANCE COMPANY
Under the guidance of
Mrs Pragyan Pushpanjali
Imba, 6th sem
"Gratitude is not a thing of expression; it is more matter of feeling."
There is always a sense of gratitude which one express towards others for their help and
supervision in achieving the goals. This formal piece of acknowledgement is an attempt to
express the feeling of gratitude towards people who helpful me in successfully completing
of my training.
I would like to express my deep gratitude to our Head of Department of Business
Administration Prof. T.Ghoshal for providing me an opportunity to work on this Industrial
Project on Insurance Industry. I would also thank our guide Assistant Prof. Pragyan
Pushpanjali who always gave valuable suggestion throughout the pursuance of this project.
Above all no words can express my feelings to my parents, friends and all those persons
who supported me during my project.
S.No. Particulars Page No.
1 Insurance overview
Meaning of Insurance
Importance of Insurance
Principles of Insurance
History of Insurance
Time line in Insurance history
Types of insurances
World existence and Indian existence
Insurance law regulations in India
Entry of private companies: A landmark decision
Meaning of Life Insurance
History of Life Insurance
Key features of Life Insurance
Benefits of Life Insurance
Role of Life Insurance in the growth of economy
5-17 5 5-6 6-7 7 8 9 9-10 10-12 12 12 12-13 14 14-15 15-16 16-17 17
2 Insurance in India
Top Insurance Policies
India insurance industry major problems
17-21 18-19 19-21 21
3 INTRODUCTION TO THE COMPANY
About Reliance Life Insurance
Role of IT at Reliance Life Insurance
Benefits of Reliance Life Insurance Policies
22-28 22 22 23 23 23-25 25 25 26 26 26 27-28
4 Product mix
Solutions for Individuals
Solutions for group
Unit linked Plans
29-40 29-31 32-33 33-37 38-40
5 Comparative Analysis
Why Compare Best Life Insurance Policies in India
Why Compare Best Life Insurance Plans in India
Comparative Analysis Of Top 10 Life Insurance Companies
Subsequent Growth rate in insurance industry
Insurance industry contribution to GDP
Comparing Reliance Life Insurance, Max New York Life Insurance, MetLife Insurance
Comparing LIC, Reliance Life Insurance, ICICI Prudential Life Insurance
41 41-42 42-43 43-44 44-46 47 48
6 Research objective
49 49-50 50 51
7 Benefits of this project 51
8 Compare reliance child life insurance and LIC komal jeevan
9 Market share of Life Insurance industry 56-57
10 Capital fund of life insurance industry 58
11 Distribution channel 59-60
12 Promotional Programmes & Target Segment 60
13 Findings and Conclusions 61
14 Swot Analysis 62
15 Recommendations/Suggestions 63
16 Limitations 64
17 Bibliography and References 65
Insurance:- An overview
Insurance is a form of risk management primarily used to safeguard against the risk of an
In general an insurer, or insurance carrier, is a company selling the insurance; the insured, or
policyholder, is the person or entity buying the insurance policy. The amount to be charged
for a certain amount of insurance coverage is called the premium.
The transaction involves the insured assuming a guaranteed and known relatively small loss
in the form of payment to the insurer in exchange for the insurer's promise to compensate
(indemnify) the insured in the case of a financial (personal) loss. The insured receives a
contract, called the insurance policy, which details the conditions and circumstances under
which the insured will be financially compensated.
MEANING OF INSURANCE
Insurance may be described as a social device to reduce or eliminate risk of loss to life and
property. Insurance is a collective bearing of risk. Insurance is a financial device to spread
the risks and losses of few people among a large number of people, as people prefer small
fixed liability instead of big uncertain and changing liability.
Insurance can be defined as a legal contract between two parties whereby one party called
insurer undertakes to pay a fixed amount of money on the happening of a particular event,
which may be certain or uncertain. The other party called insured pays in exchange a fixed
sum known as premium.
Insurance is desired to safeguard oneself and ones family against possible losses on account
of risks and perils. It provides financial compensation for the losses suffered due to the
happening of any unforeseen events.
IMPORTANCE OF INSURANCE
Insurance constitutes one of the major segments of the financial market. Insurance services
play predominant role in the process of financial intermediary. Today insurance industry is
one of the most growing sectors in India. There is lot of potential in the Indian Insurance
There are many issues, which require study. The scope of the study of insurance industry of
India would be very great as there are on-going developments in the industry after the
opening of the sector.
The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to
49% in the insurance sector. Government may in near future allow 49% FDI in Insurance.
This would lead to more capital inflow by foreign partners.
Another major issue is the effects on LIC after the entry of private players in the market.
Though market share of LIC has been affected, it has improved in terms of efficiency.
There are number of other hot topics like penetration of Health Insurance Rural marketing
of insurance, new distribution channels, new product ranges, insurance brokers regulation,
incentive scheme of development officers of LIC etc. So it offers lot of scope for studying the
Right now the insurance industry has great opportunities in a country like India or China
which huge population. Also the penetration of insurance in India is very low in both life and
Non-life segment so there is lot potential to be tapped.
Before starting the discussion on insurance industry and related issues, we have to start
with the basics of insurance. So first we understand what is insurance? How the word
insurance is different from the word assurance? Etc.
PRINCIPLES OF INSURANCE
An insurance contract is based on some basic principles of insurance.
(1) Principle of Uberrima Fides or Principle of utmost good faith
It means maximum truth. Both the parties should disclose all material information
regarding the subject matter of insurance.
(2) Principle of indie
This means that if the insured suffers a loss against which the policy has been made, he shall
be fully indemnified only to the extent of loss. In other words, the insured is not entitled to
make a profit on his loss.
(3) Principle of subrogation
This means the insurer has the right to stand in the place of the insured after settlement of
claims in so far as the insureds right of recovery from an alternative source is involved. The
insurer before the settlement of the claim may exercise the right. In other words, the
insurer is entitled to recover from a negligent third party any loss payments made to the
insured. The purposes of subrogation are to hold the negligent person responsible for the
loss and prevent the insured from collecting twice for the same loss. The concept of Third
Party Claims is based on the same principle.
(4) Principle of causa proxima
The cause of loss must be direct and an insured one in order to claim of compensation.
(5) Principle of insurable interest
The assured must have insurance interest in the life or property insured. Insurable interest is
that interest which considerably alters the position of the assured in the event of loss taking
place and if the event does not take placed, he remains in the same old position.
Insurance law is the practice of law surrounding insurance, including insurance policies and
claims. It can be broadly broken into three categories - regulation of the business of
insurance; regulation of the content of insurance policies, especially with regard to
consumer policies; and regulation of claim handling.
Until 2005 all, common law jurisdictions require the insured to have an insurable interest in
the subject matter of the in