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  • [1]

    Industrial Project Report

    On

    RELIANCE LIFE INSURANCE COMPANY

    LIMITED

    Under the guidance of

    Mrs Pragyan Pushpanjali

    Submitted by:-

    Priyadarshani Kumari

    Imba, 6th sem

    R.no-25

    CUJ/I/2010/IMBA/28

  • [2]

    ACKNOWLEDGEMENT

    "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.

  • [3]

    CONTENTS

    S.No. Particulars Page No.

    1 Insurance overview

    Meaning of Insurance

    Importance of Insurance

    Principles of Insurance

    Insurable laws

    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

    Regulatory authorities

    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

    Insurance companies

    Top Insurance Policies

    India insurance industry major problems

    17-21 18-19 19-21 21

    3 INTRODUCTION TO THE COMPANY

    Executive Summary

    About Reliance Life Insurance

    History

    Achievement

    Role of IT at Reliance Life Insurance

    Mission

    Core Values

    Future Plans

    Head Office

    Branches

    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

    Traditional Plans

    Unit linked Plans

    29-40 29-31 32-33 33-37 38-40

    5 Comparative Analysis

    41-48

  • [4]

    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

    Research Methodology

    Research Design

    Research constraints

    49 49-50 50 51

    7 Benefits of this project 51

    8 Compare reliance child life insurance and LIC komal jeevan

    52-55

    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

  • [5]

    Insurance:- An overview

    Insurance is a form of risk management primarily used to safeguard against the risk of an

    uncertain loss.

    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

    Industry.

    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.

  • [6]

    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

    insurance industry.

    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.

  • [7]

    (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.

    Insurable laws:-

    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

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