Post on 08-Apr-2018
transcript
8/7/2019 BIPIN RELA[1][1]. PROJECT
1/87
A Project Report
On
CHANNEL DEVELOPMENT INRELIANCE LIFE INSURANCE
Summer Training Report Submitted in
The partial fulfillment of
Master of Business Administration of
Session 2009-10
Submitted by: Under guidance of
BIPIN SINGH SIKHA AGRAWAL
MBA III Sem Faculty of MBA Deprt.
Roll No. 0914170013
SAGAR INSTITUTE OF TECHNOLOGY &
MANAGEMENT BARABANKI
8/7/2019 BIPIN RELA[1][1]. PROJECT
2/87
CONTENT
Preface 5
Declaration 6
Acknowledgement 8
Abstract 9
Company Profile: 11
Reliance Insurance
Introduction of study 47
Objective of study 66
Research Methodology 68
Research variable
Research design
Sample and Sampling Size
Data Representation, Analysis & Interpretations 72
Results 81
Limitations 84
Conclusion 85
Recommendations 85
Questionnaire 89
Bibliography 93
8/7/2019 BIPIN RELA[1][1]. PROJECT
3/87
C E RTIFICATE
This is certify that BIPIN SINGH student of MBA II Year, SAGAR INSTITUTE OF
TECHNOLOGY & MANAGEMENT BARABANKI, has undergone a research report on
CHANNEL DEVELOPMENT IN RELIANCE LIFE INSURANCE and has submitted a
report the based same as mandatory requirement of the degree of Master of business
Administration, U.P Technical University Lucknow.
(SIKHA AGRAWAL) Date
(SAGAR INSTITUTE OF TECHNOLOGY & MANAGEMENT)
PREFACE
8/7/2019 BIPIN RELA[1][1]. PROJECT
4/87
The business of insurance is related to the protection of economic value of
assets . The assets would have been created through the efforts of the owner,
in the expectat ion that , ei ther through the income generated there from the
some other output, some of his needs would be met. If assets get lost earl ier ,
be ing dest royed or made non- funct ional , through an accident or o ther
unfortunate event, the owner and those deriving benefi ts there from suffer .
Insurance is a mechanism that helps to reduce such adverse consequences.
I ns ur ance p lays a maj or r ol e i n d if fe rent per spec ti ve . For economi c
development investments are necessary. Investments are made out of savings.
A l if e insurance company i s a major investment for the mobi li zat ion of
saving of people, par t icular ly f rom the middle and lower income groups .
These savings are channeled in to the investments for economic growth. In
order to amenable to stat is t ical predict ions, insurance r isks must be handled
on a large scale.
All organization face change in their environment with resultant change in
their markets and in the abil i ty to sat isfy their markets . Each organization is
faced with new marketing problems and opportunit ies in their exist ing and
potential market. Marketing decision makers cope with these challenges in a
var iety of ways . The marketer s i s being required to forecas t , forecas t the
risk and uncertainness in their own way, supported by market research.
Man on earth can entirely el iminate knows no method but scientif ic method
can minimize the e lement of uncertain ti es tha t can result f rom back of
information without orientation, Market research is a process of collecting information
about who, why and how of actual and potential consumers in a particular mark .
8/7/2019 BIPIN RELA[1][1]. PROJECT
5/87
STUDENT DECLARATION
I, BIPIN SINGH undersigned here declare that the project titled CHANNEL
DEVELOPMENT IN RELIANCE LIFE INSURANCE is my own work and efforts
which is completed under the supervision of SIKHA AGRAWAL.
BIPIN SINGH
Roll No. 0914170013
M.B.A. III Sem
8/7/2019 BIPIN RELA[1][1]. PROJECT
6/87
Acknowledgement
ACKNOWLEDGEMENT
I would like to take this opportunity to express my deep gratitude to all those who, directly
or indirectly made this project possible.I have got considerable help and support in making
this project report a reality from many people.
I would like to thank Mr. Rahul Srivastava (Senior Sales Manager), Reliance Insurance
Co. Ltd., Lucknow whose great help and proper guidance helped me in completing this
8/7/2019 BIPIN RELA[1][1]. PROJECT
7/87
project. This work is the reflection of his thought, ideas, concept and above all his modest
effort.
I would also like to say thanks to Sikha Agrawal for their constant suggestion which have
resulted in successful completion of the project.
( BIPIN SINGH)
ABSTRACT
Background ofthe work assigned:
During Summer Internship Program following three projects have been assigned:
1. Personal Financial Planning at Reliance life insurance- Purely the marketing project.
2. Financial Consultants Recruitment- Mix of Human Resource Planning &
Marketing.
3. Comparative analysis of Reliance life insurance product with other major
competitors: Totally a research study.
8/7/2019 BIPIN RELA[1][1]. PROJECT
8/87
First two are the basic two phases of insurance around which this whole insurance roams.
The objective of the projects so assigned is to get me in depth knowledge about the insurance
terms and policies and to know the customer behavior and the corporate environment of
insurance.
To get the in depth knowledge about Reliance life insurance that where it is providing better than
the market and to have an understanding of the insurance market. Moreover, training has
been provided to understand the share market and to know that how this share market works.
Special training has been provided to know the company s products and their features and to
know the company s terms and conditions and its policies. During internship lots of data was
given for tele-calling so as to make people aware of the products of Reliance life insurance
then taking appointments and generating leads. Data was also provided for calling people to
get associated with the company and be the company s representative by being its certified
financial consultant.
Finally, conduct the research study on the products of Reliance life Insurance and its
competitors products so as to find out the advantages of Reliance life insurance products
over its competitors.
8/7/2019 BIPIN RELA[1][1]. PROJECT
9/87
COMPANY PROFILE OF RELIANCE LIFE INSURANCE
Chairman's Profile:
Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil
Dhirubhai Ambani is the chairman of all listed companies of the Reliance ADA Group,
namely, Reliance Communications, Reliance Capital, Reliance Energy, Reliance Natural
Resources and Reliance Power. He is also Chairman of the Board of Governors of Dhirubhai
http://images.google.co.in/imgres?imgurl=http://www.karamveer.com/wp-content/uploads/2008/06/anil-ambani.JPG&imgrefurl=http://www.karamveer.com/&usg=__eWNm0YdwRiyv2k2gojyJN34aO6E=&h=320&w=277&sz=12&hl=en&start=13&um=1&tbnid=mHpVZ26G8gdQnM:&tbnh=118&tbnw=102&prev=/images?q=anil+ambani&hl=en&sa=N&um8/7/2019 BIPIN RELA[1][1]. PROJECT
10/87
Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat.
Till recently, he also held the post of Vice Chairman and Managing Director in Reliance
Industries Limited (RIL), India's largest private sector enterprise. Anil Dhirubhai Ambani
joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every
aspect of the company's management.
If we look for examples to prove this quote then we can find many but there is none like that
of Reliance Money. The company which is today known as the largest financial service
provider of India.
Reliance Capital has interests in asset management and mutual funds, life and general
insurance, private equity and proprietary investments, stock broking, depository services,
distribution of financial products, consumer finance and other activities in financial services.
Reliance Mutual Fund is India's no.1 Mutual Fund. Reliance Life Insurance is India's fastest
growing life insurance company and among the top 4 private sector insurers. Reliance
General Insurance is India's fastest growing general insurance company and the top 3 private
Sector insurers.
Few men in history have made as dramatic a contribution to their countrys economic
fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left
behind a legacy that is more enduring and timeless.
As with all great pioneers, there is more than one unique way of describing the true
genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot,
the leader of men, the architect of Indias capital markets, the champion of shareholder
interest.
But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth
creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest
private sector enterprise.
8/7/2019 BIPIN RELA[1][1]. PROJECT
11/87
When Dhirubhai embarked on his first business venture, he had a seed capital of barely
US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this
fledgling enterprise into an Rs 60,000 crore colossusan achievement which earned
Reliance a place on the global Fortune 500 list, the first ever Indian private company to
do so.
Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when
Reliance Textile Industries Limited first went public, the Indian stock market was a place
patronized by a small club of elite investors which dabbled in a handful of stocks.
Undaunted, Dhirubhai managed to convince a large number of first-time retail investors
to participate in the unfolding Reliance story and put their hard-earned money in the
Reliance Textile IPO, promising them, in exchange for their trust, substantial return on
their investments. It was to be the start of one of great stories of mutual respect and
reciprocal gain in the Indian markets.
Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the
greatest growth stories in corporate history anywhere in the world, and went on to
become Indias largest private sector enterprise.
Throughout this amazing journey, Dhirubhai always kept the interests of the ordinary
shareholder uppermost in mind, in the process making millionaires out of many of
the initial investors in the Reliance stock, and creating one of the worlds largest
shareholder families.
ABOUT RELIANCE
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance -
Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector
financial services companies, and ranks among the top 3 private sector financial services and
banking companies, in terms of net worth. Reliance Capital has interests in asset
8/7/2019 BIPIN RELA[1][1]. PROJECT
12/87
management and mutual funds, stock broking, life and general insurance, proprietary
investments, private equity and other activities in financial services.
Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)
registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of
India Act, 1934.
Reliance Capital sees immense potential in the rapidly growing financial services sector
in India and aims to become a dominant player in this industry and offer fully integrated
financial services. Reliance Life Insurance is another step forward for Reliance Capital
Limited to offer need based Life Insurance solutions to individuals and Corporate.
MARKETING STRATREGIES OF THE COMPANY
SOME OF THE STRATEGIES ADOPTED BY RELIANCE LIFE INSURANCE
COMPANY
Reliance Life Insurance plans to tap Reliance Communications' 2.5-crore .Telephony
subscriber base to market its products. The company is considering a series of options to
leverage its relationship with Reliance Communications. However, a joint product or a co-
8/7/2019 BIPIN RELA[1][1]. PROJECT
13/87
branded solution would require approval from the Insurance Regulatory and Development
Authority Customers of R World, the information and entertainment portal of
Reliance Communications would also be able to pay premiums through a bank account,
provided the bank is listed on the network. Reliance Life Insurance officials, however,
offered no comment when asked whether there would be an arrangement for payment of
commission to Reliance Communications. As an alternative channel for distribution,
insurance companies usually tie up with banks. In the case of banc assurance, where there is
a corporate agency tie-up, the commission could range from 5 per cent to 40 per cent
of first-year premium depending on the commission loaded on to the product at the time of
registration with IRDA.
8/7/2019 BIPIN RELA[1][1]. PROJECT
14/87
INDUSTRY PROFILE
INSURANCE
Insurance is basically a sharing device, a tool for managing risk. The losses to assets caused
by unexpected contingencies like fire, earthquake, accidents, etc. are met out of a common
pool contributed by a large number of persons who are exposed to similar risk. This
contribution is known as premium, is used to pay the losses suffered by the unfortunate few.
The concept of insurance is based on certain principals.
1. The contingency of the insured event should be fortuitous in nature, i.e. beyond human
control.
2. The insured should not make any profit out of it.
It requires a large number of insured to make the principal of insurance work, based on law
of profitability.
Business of insurance is related to the protection of the economic value of assets. The asset
would have been created through the efforts of the owner, in the expectation that, either
through the income generated there from or some other output, some of his needs would be
met. However, if the asset gets lost earlier, being destroyed or made non-functional, through
8/7/2019 BIPIN RELA[1][1]. PROJECT
15/87
an accident or other unfortunate event, the owner and those deriving benefits there from
suffer.
The business of insurance done by insurance companies (called insurers) is to bring together
persons with common interests (sharing the same risks) collecting the share or contribution
(called premium) from all of them, and paying out compensations (called claims) to those
who suffer.
PURPOSE AND NEED OF INSURANCE
Assets are insured, because they are likely to be destroyed, through accidental occurrences.
Such possible occurrences are called perils, Fire, floods, breakdown, lightning, earthquakes,
etc, are perils. If such perils can cause damage to the asset, we say that the asset is exposed
to that risk. Perils are the events. Risks are the consequential losses or damages. The risk to a
owner of a building, because of the peril of an earthquake, may be a few lakhs or few crores
of rupees, depending on the cost of the building and the contents in it.
The risk only means that there is a possibility of loss or damage. The damage may or may
not happen. Insurance is relevant only if there are uncertainties. If there is no uncertainty
about the occurrence of an event, it cannot be insured against. In the case of a human being,
death is certain, but the time of death is uncertain, In the case of a person who is terminally
ill, the time of death is not uncertain, though not exactly known. He cannot be insured.
Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril
cannot be avoided through insurance. The peril can sometimes be avoided, through better
safety and damage control management. Insurance only tries to reduce the impact of the risk
and the owner of the assets and those who depend on that asset. It only compensates the
losses and that too, not fully.
8/7/2019 BIPIN RELA[1][1]. PROJECT
16/87
Only economic consequences can be insured. If the loss is not financial, insurance may not
be possible. Examples of non economic losses are love and affection of parents, leadership
of managers, sentimental attachments to family heirlooms, innovative and creative abilities,
etc.
CONTRACT OF LIFE INSURANCE
Life insurance contract is an agreement that the insurer will pay a sum of money, called the
sum assured, on the happening of a specified event, usually the death of the assured or his
survival to the end of the specific term. On the other hand, the assured will pay an immediate
smaller payment or a series of regular smaller payments, called premium.
There are two important legal aspects of life insurance worth nothing.
UTMOST GOOD FAITH: A life insurance contract is not just a contract of good faith,
which any commercial transaction is, but it is a contract of utmost good faith. Since one
party to the contract, the assured, knows all the facts which the other party, the insurer,
cannot know despite reasonable efforts. There is a positive duty on the former to voluntarily
disclose, accurately and fully, all facts material to the risk being proposed. A fact is
considered material if it would influence the judgment of a prudent insurer in deciding
whether to insure a particular risk, or the terms on which to insure it. For instance the
existing of other life insurance policies is a material fact. The impact of unlimited duty to;
disclose is mitigated to some extent by sec. 45 of insurance act. Which requires the
following to be proved by the insurer in order to avoid the contract
8/7/2019 BIPIN RELA[1][1]. PROJECT
17/87
8/7/2019 BIPIN RELA[1][1]. PROJECT
18/87
whose sole purpose is to carry on life insurance business or general insurance
business or re-insurance business.
The important activities of a life insurance company are:-
a) Procuring from prospective buyers proposals to grant life insurance cover;
b) Checking up and specifying the terms of acceptance called Understanding;
c) Issue contractual documents called policy incorporating various terms and condition;
d) Provide after sales services including payment of money as per contract;
e) Conducting other supporting activities like, investment of funds, carrying out
solvency measures, finalization of accounts, getting or causing audit of accounts,
actuarial valuation including updating mortality tables; and
f) Developing new products, sales promotion activities including publicity, training of
its personal (Sales/ administration).
ROLE OF INSURANCE IN DEVELOPMENT OF THE ECONOMY
Every rupee inves ted in l ife insurance contr ibutes in three ways to the
development of the economy.
Firstly, it relieves those insuring from the worry and anxiety they may have about
how they or their family would meet the cost of certain events, such as the
marriage of the children, the premature death of the main income provider or
maintaining a regular income in their retirement. If an individual is free from these
worries he can perform better in his job.
i. Secondly, it directs peoples savings. The insurer invests these funds in
various business enterprises, government bonds, loans to public and private
projects including infrastructure and socially orientated projects. Thus the
insurance premium provides the much needed funds for the development of
the nations economy.
ii. Thirdly, these savings act as an anti inflationary force in the nations
financial structure. Inflation happens when prices of good go up. One of the
8/7/2019 BIPIN RELA[1][1]. PROJECT
19/87
causes is when a lot of buying takes place, due to the spending of a major
portion of income by people. Savings in insurance reduce buying, as people
will have less money to spend.
NEED FOR LIFE INSURANCE
Life is unpredictable. But in face of adversity, our responsibilities towards our parents,
children and loved ones need not be compromised. Insurance planning equips you to smooth
out the uncertainties and adversities that life might send your way, so that the best that life
has to offer, secure in the knowledge that your beloved ones are well provided for.
As life insurance became more established, it was realized what a useful tool it was for a
number of situations, including
a) Temporary needs/ threat
The original purpose of life insurance remains an important element, namely
providing for replacement of income on death etc., typically the case of the
breadwinner dying an early death.
b) Regular Saving
Providing for ones family and oneself, as a medium to long-term exercise (through a
series of regular payment of premiums). This has become more relevant in recent
times as people seek financial independence from their family.
c) Investment
8/7/2019 BIPIN RELA[1][1]. PROJECT
20/87
Put simply, the building up of savings while safeguarding it from the ravages of
inflation. Unlike regular saving products, investment products are traditionally lump
sum investment, where the individual makes a one-time payment.
d)Retirement
Provision for ones own later years becomes increasingly necessary, especially in a changing
cultural and social environment. One can buy a suitable insurance policy, which will provide
periodical payments in ones old age, generally identified as the problem of living too long.
ADVANTAGE OF LIFE INSURANCE
(1) It is superior to the traditional saving Instruments.
As well as providing a secure vehicle to build up savings etc, it provides peace of mind to
the policyholder. In the event of untimely death, of say the main earner in the family, the
policy will pay out the guaranteed sum assured, which is likely to be significantly more than
the total premiums paid. With more traditional savings instruments, such as fixed deposits,
the only return would be the amount invested plus any interest accrued.
(2) It encourages saving and forces thrift.
Once an insurance contract has been entered into, the insured has an obligation to continue
paying premiums, until the end of the term of the policy; otherwise the policy will lapse. In
other words, it becomes compulsory for the insured to save regularly and spend wisely. In
contrast savings held in a deposit account can be accessed or stopped easily.
(3) It provides easy settlement and protection against creditors.
Once a person is appointed for receiving the benefits (nomination) or a transfer of rights is
made (assignment), a claim under the life insurance contract can be settled easily. In
addition, creditors have no rights to any monies paid out by the insurer, where the policy is
8/7/2019 BIPIN RELA[1][1]. PROJECT
21/87
written under trust. Under the Married Womens Property Act (M.W.P Act), the money
available from the policy forms a kind of trust which cannot be attached by judgment
creditors.
(4) It helps to achieve the purpose of the Life Assured.
If someone receives a large sum of money, it is possible that they may spend the money
unwisely or in a speculative way. To overcome this, the person taking the policy can instruct
the insurer that the claim amount is given in installments.
(5) It can be enchased and facilitates quick borrowing.
Some contracts may allow the policy to be surrendered for a cash amount, if a policyholder
is not in a position to pay the premium. A loan, from certain policies, can be taken for a
temporary period to tide over the difficult. Some lending institutions will accept a life
insurance policy as collateral for a personal or commercial loan.
(6) Tax Relief
The policyholder obtains Income Tax rebated by paying the insurance premium. The
specified forms of saving which enjoy a tax rebate, includeLife Insurance Premiums and
contributions to a recognized Provident Fund etc., section 10 (10D) & other sub-sections of
Section 80C of the Income Tax Act 1961.
8/7/2019 BIPIN RELA[1][1]. PROJECT
22/87
WHAT DOES LIFE INSURANCE HAVE TO OFFER?
Life insurance is many different things to many different people. For some, it is a premium
to be paid on time. For others it offers liquidity since cash can be borrowed when needed.
For the investment-minded, it denotes a constantly growing capital account and numerous
other benefits.
The contractual guarantee is the promise to pay, backed by one of the oldest and most stably
regulated financial industry operating in the Indian sub-continent today.
1) Insurance Buys Time and Money
People like to refer to life insurance as time insurance, the reason being that life insurance
proceeds are paid to the insured's beneficiaries in case of death. The money proffered by life
insurance helps buy time to adjust to the change of circumstances. Insurance provides large
amounts of cash that will keep the lifestyle for the survivors the way it was before the
insured's death.
2) Insurance Offers Peace of Mind
For the person who buys an insurance policy, it offers absolute and complete peace of mind.
He or she knows that the decision made by him will provide sound benefits in the future,
whether or not the individual may live to see it.
3) Multiple Applications
The future is uncertain for each and every one. No one knows how long he or she will live.
The investment benefit is paid to the insured's beneficiaries after his death or it can be used
during the life as well. Life insurance policy owners can turn to the cash value of the policy
in case of a financial emergency when all avenues are either blocked or denied.
4) Enduring Elasticity
Since life insurance is flexible enough to serve several needs, the insured can keep several
long-term goals in mind once he or she invests in the insurance plan. The cash value of the
8/7/2019 BIPIN RELA[1][1]. PROJECT
23/87
policy can be allocated towards augmenting the monthly income during the retirement years.
Leisure years should be turned into pleasure years. Permanent life insurance is designed on
the concepts of long-term flexibility.
5) Financial Security
The insurance policy offers contractual guarantees to people looking for peace of mind when
they buy life insurance. Life insurance offers complete financial security. The purchase of
life insurance demonstrates concern for a family's future financial well being.
6) Regard for Family
The purchase of life insurance clearly displays care and concern for the people the policy
owner loves.
7) Insurance is Safer
No financial institution can do what life insurance does. No industry can back its products
with reserves and surplus as sound as those of the insurance industry.
The proof of strength and safety that insurance companies have ensured even under the most
adverse of conditions is a matter of pride for the entire insurance industry. For generation
after generation, life insurance has been acclaimed as the very benchmark of security against
which the other industries are measured.
OPPORTUNITIES FOR INSURANCE COMPANIES
In the now open sector on insurance, the following is what I feel will determine the success
of the company in particular and the industry in general:
A change in the attitude of the population
8/7/2019 BIPIN RELA[1][1]. PROJECT
24/87
Indians have always been wary of employing their hard-earned money in a venture that will
pay them on their death. Insurance has always been used as a Tax saving tool. No more, no
less. It is depend upon the Financial Consultant to educate the people to secure/insure their
future against any unknown calamity and make a shield around their families and businesses.
An open and transparent environment created under the IRDA.
The reason for this being on the top of our understanding is that when ever we have seen
any sector open up in India there are always grey areas and unsure policies. These are not
exactly what any player, be it Indian or foreign, looks for. It creates an air of uncertainty
in all the decision making process. Insurance as a sector requires players who are strong
financially and are willing to wait for returns. Their confidence can be bolstered only if
there is an open and a transparent policy guidelines. This will also help the consumers
feel safe that the regulatory is an active one and cares to do everything possible to keep
things under control and help the insurance environment grow maturely.
A well-established distribution network.
To cater to the largest democracy in the world is by no means a cakewalk. Insurance profits
are directly related to number of insured and this is in turn related to the reach.
Trained professionals to build and sell the product.
It is said that the insurance agent (Financial Consultant) is the best salesman in the world.
He makes you pay, regularly, an amount promising to pay back only on your death. Thus the
players will require an excellent sales team to sell their products in the now competitive
environment.
Encouragement of new and better products and letting the hackneyed ones die out.
8/7/2019 BIPIN RELA[1][1]. PROJECT
25/87
This will itself ensure the market grows. And that every class/society gets a product that best
suits them.
SWOT ANALYSIS OF INSURANCE INDUSTRY
STRENGTH
1.Best returns with the added advantage of 100% life insurance coverage.
2. Good option for new investors into the market as all the money is invested
by best fund managers so with less knowledge also they can earn good
returns.
3. Best commission charges paid to the agents which vary from 12% to 40%
which is much higher as compared to mutual funds i.e. , only 22.5%.
WEAKNESS
8/7/2019 BIPIN RELA[1][1]. PROJECT
26/87
1. RELIANCE LIFE INSURANCE could not able to match LIC in remote areas services.
2. Misleading facts given by Financial Consultant about the returns of ULIPs.
3. Hidden charges taken by the companies.
4. Less Promotional Campaigns.
OPPORTUNITY
1. 80 percent of Indian population is still under insured. So there is a big opportunity for
insurance companies.
2. As the stock market can be under the mark any time so it can bring loss to
the investors but as in ULIPs there is proper mixture of debt securities and
Equity so the loss is incurred during dark trading days also.
3. Unit-linked products are exempted from tax and they provide life insurance.
4. Increasing consumer awareness about Insurance and its use.
THREAT
1. Cannibalism within the industry by providing misleading figures to the investors.
2. Govt.s instability has a long term repercussions affecting companys policies and its
growth.
8/7/2019 BIPIN RELA[1][1]. PROJECT
27/87
LIFE INSURANCE IN INDIA
The history of life insurance in India dates back to 1818 when it was conceived as a means to
provide for English Widows. Interestingly in those days a higher premium was charged for
Indian lives than the non-Indian lives as Indian lives were considered more risky for
coverage.
The Bombay Mutual Life Insurance Society started its business in 1870. It was the first
company to charge same premium for both Indian and non-Indian lives. The Oriental
Assurance Company was established in 1880. The General insurance business in India, on
the other hand, can trace its roots to the Triton Insurance Company Limited, the first general
insurance company established in the year 1850 in Calcutta by the British. Till the end of
nineteenth century insurance business was almost entirely in the hands of overseas
companies.
8/7/2019 BIPIN RELA[1][1]. PROJECT
28/87
Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and
30's sullied insurance business in India. By 1938 there were 176 insurance companies. The
first comprehensive legislation was introduced with the Insurance Act of 1938 that provided
strict State Control over insurance business. The insurance business grew at a faster pace
after independence. Indian companies strengthened their hold on this business but despite the
growth that was witnessed, insurance remained an urban phenomenon. The Government of
India in 1956, brought together over 240 private life insurers and provident societies under
one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born.
Nationalization was justified on the grounds that it would create much needed funds for
rapid industrialization. This was in conformity with the Government's chosen path of State
lead planning and development.
The (non-life) insurance business continued to thrive with the private sector till 1972. Their
operations were restricted to organized trade and industry in
large cities. The general insurance industry was nationalized in 1972. With this, nearly 107
insurers were amalgamated and grouped into four companies- National Insurance Company,
New India Assurance Company, Oriental Insurance Company and United India Insurance
Company.
These were subsidiaries of the General Insurance Company (GIC).
Life insurance business in India was nationalized with effect from 1st September, 1958. From
this date, the life insurance business transacted by 154 Indian life insurers, the Indian
business of 16 foreign insurers and 75 provident societies was taken over by Government of
India Act, 1956, passed by the Parliament on 18-6-56. The Life Insurance Corporation of
India (LIC) which had been established i.e. 19-5-1956 as a body corporate having perpetual
succession and common seal with power to acquire, hold and dispose property and to sue
and be sued in its name.
Under Section 30 of the Act, from the appointment date i.e. 1-9-56, LIC acquired the
exclusive privilege of carrying on life insurance business in India and the certificate of
8/7/2019 BIPIN RELA[1][1]. PROJECT
29/87
registration granted to any insurer under the Insurance Act, 1938 ceased to have effect from
the said date.
Now the above, provision of section 30 have been altered by insertion of Section 30A
consequent to the enactment of the IRDA Act, 1999. As a result the exclusive privilege
given to the LIC has been withdrawn.
The Government of India liberalized the insurance sector in March 2000 with the passage of
the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry
restrictions for private players and allowing foreign players to enter the market with some
limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity
capital for foreign partners in an insurance company. There is a proposal to increase this
limit to 49 percent.
The opening up of the sector is likely to lead to greater spread and deepening of insurance in
India and this may also include restructuring and revitalizing of the public sector companies.
In the private sector 14 life insurance companies have been registered. A host of private
Insurance companies operating in both life and non-life segments have started selling their
insurance policies since 2001.
8/7/2019 BIPIN RELA[1][1]. PROJECT
30/87
THE INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY (IRDA)
BACKGROUND
A faster development and wider impact of the insurance industry were to be achieved
through a process of insurance reforms resulting in the liberalization of the market and in the
passage of the Insurance Regulatory and Development Authority (IRDA) Act, 1999. The
reforms procedures recognized simultaneously the need for development of the sector in
addition to the traditional concept of regulation and thus conferred on the Authority the
obligation to develop the sector as well.
MISSION STATEMENT
The IRDA main mission was stated as follows:
To protect the interest of and secure fair treatment to policyholders:
To bring about speedy and orderly growth of the insurance industry, for the benefit
of the common man, and to provide long terms funds for accelerating growth of the
economy;
To set, promote, monitor and enforce high standards of integrity, financial
soundness, fair dealing and competence of those it regulates:
8/7/2019 BIPIN RELA[1][1]. PROJECT
31/87
To ensure that insurance customers receive precise, clear and correct information
about products and services and make them aware of their responsibilities and duties
in this regard;
To ensure speedy settlement of genuine claims, to prevent insurance frauds and
other malpractices and put in place effective grievances redressed machinery;
To promote fairness, transparency and orderly conduct in financial markets dealing
with insurance and build a reliable management information system to enforce high
standards of financial soundness amongst market players;
IRDA POWERS AND FUNCTIONS
Subject to the provisions of IRDA Act (1990), IRDA will: regulate, promote and ensure
orderly growth of the insurance business and re-insurance business, which will include the
following main functions (excerpts):
Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend
or cancel such registration;
Protection of the interest of the policy holders in matters concerning assigning off
policy, nomination by policy holders, insurable interest, settlement of insurance
claim, surrender value of policy and others terms and conditions of contracts of
insurance;
Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents.
Promoting and regulation professional organizations connected with the insurance
and re-insurance business;
8/7/2019 BIPIN RELA[1][1]. PROJECT
32/87
Levying fees and other charges for carrying out the purposes of the Act;
Calling for information from, undertaking inspection of, conducting enquiries and
investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organizations connected with the insurance business;
Specifying the percentage of life insurance and general insurance business to be
undertaken by the insurer in the rural or social sector.
IMPACT OF LIBERALIZATION
The introduction of private players in the industry has added to the colors in the dull
industry. The initiatives taken by the private players are very competitive and have given
immense competition to the on time monopoly of the market LIC. Since the advent of the
private players in the market the industry has seen new and innovative steps taken by the
players in this sector. The new players have improved the service quality of the insurance.
As a result LIC down the years have seen the declining phase in its career. The market share
was distributed among the private players. Though LIC still holds the 75% of the insurance
sector but the upcoming natures of these private players are enough to give more competition
to LIC in the near future. LIC market share has decreased from 95% (2002-03) to 81 %
( 2004-05).The following companies has the rest of the market share of the insurance
industry
SPECIAL PROVISIONS
The Income Tax Act and Life Insurance policies
Under Section 10(10D), any sum received under a Life Insurance policy (not being a
Key Man policy) is also exempt from taxation. But it is wise to remember that Pensions
received from Annuity plans are not exempted from Income Tax.
8/7/2019 BIPIN RELA[1][1]. PROJECT
33/87
Section 80C provides a deduction up to Rs.1,00,000/- to an individual assesses for any
amount paid as a premium.
POLICYHOLDERS GRIEVANCES
Policyholders may have complaints against insurers either in respect of their policies or their
claims. As per Regulations for Protection of policyholders interests, 2002, every insurer
should have in place, a grievance redressal system to address the complaints of
policyholders. The IRDA has a Grievance Redressal Cell which plays a facilitative role by
taking up complaints against insurers with the respective companies for speedy resolution.
The IRDA however does not adjudicate on complaints.
8/7/2019 BIPIN RELA[1][1]. PROJECT
34/87
INDIAN INSURANCE INDUSTRY
Insurance industry, as on 1.4.2000, comprised mainly two players:
Life Insurers :
Life Insurance Corporation of India (LIC)
General Insurers:
General Insurance Corporation of India (GIC)
GIC had four subsidiary companies, namely (with effect from Dec'2000, these subsidiaries
have been de-linked from the parent company and made as independent insurance
companies.
1. The Oriental Insurance Company Limited
2. The New India Assurance Company Limited,
3. National Insurance Company Limited
4. United India Insurance Company Limited.
8/7/2019 BIPIN RELA[1][1]. PROJECT
35/87
Yr: 2000-2001: (From 2nd April '2000 to 31st December'2001)
Insurance Industry in the year 2000-2001 had 16 new entrants, namely:
Life Insurers:
S.No. Reg.
Number
Date of Reg. Name of the Company
1 101 23.10.2000 HDFC Standard Life Insurance Company
Ltd.
2 104 15.11.2000 Reliance insurance Insurance Co. Ltd.
3 105 24.11.2000 Reliance Life Insurance Company Ltd.
4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance
Limited
5 109 31.01.2001 Reliance Insurance Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance Company Limited.
8 114 02.08.2001 ING Vysya Life Insurance Company Private
Limited
9 116 03.08.2001 Bajaj Allianz Life Insurance Company
Limited
8/7/2019 BIPIN RELA[1][1]. PROJECT
36/87
General Insurers :
S.No. Registration
Number
Date of
Registration
Name of the Company
1 102 23.10.2000 Royal Sundaram Alliance
Insurance Company Limited
2 103 23.10.2000 Reliance General Insurance
Company Limited.
3 106 04.12.2000 IFFCO Tokyo General Insurance
Co. Ltd
4 108 22.01.2001 TATA AIG General Insurance
Company Ltd.
5 113 02.05.2001 Bajaj Allianz General Insurance
Company Limited
6 115 03.08.2001 ICICI Lombard General Insurance
Company Limited.
Yr: 2001-2002: (From 1st Jan 2001 to Dec. 2002)
Insurance Industry in this year, so far has 5new entrants; namely
Life Insurers:
S.No. Reg.
Number
Date of Reg. Name of the Company
8/7/2019 BIPIN RELA[1][1]. PROJECT
37/87
1 121 03.01.2002 AMP Sanmar Life Insurance Company
Limited.
2 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.
General Insurers :
S.No. Registration
Number
Date of
Registration
Name of the Company
1 123 15.07.2002 Cholamandalam General Insurance
Company Ltd.
2. 124 27.08.2002 Export Credit Guarantee
Corporation Ltd.
3. 125 27.08.2002 HDFC-Chubb General Insurance
Co. Ltd.
Yr: 2003-2004: (From 1st Jan 2003 till Date)
Insurance Industry in this year, so far has 1new entrants; namely
Life Insurers:
S.No. Registration
Number
Name of the Company
1 127 Sahara India Insurance Company Ltd.
Yr: 2004-2005:
Insurance Industry in this year, so far has 1new entrants; namely
Life Insurers:
S.No. Registration
Number
Date of Reg. Name of the Company
8/7/2019 BIPIN RELA[1][1]. PROJECT
38/87
1 128 17.11.2005 Shriram Life Insurance Company Ltd.
PROTECTION OF THE INTEREST OF POLICY HOLDERS
IRDA has the responsibility of protecting the interest of insurance policyholders. Towards
achieving this objective, the Authority has taken the following steps:
IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide
for: policy proposal documents in easily understandable language; claims procedure
in both life and non-life; setting up of grievance redressal machinery; speedy
settlement of claims; and policyholders' servicing. The Regulation also provides for
payment of interest by insurers for the delay in settlement of claim.
The insurers are required to maintain solvency margins so that they are in a position
to meet their obligations towards policyholders with regard to payment of claims.
It is obligatory on the part of the insurance companies to disclose clearly the benefits,
terms and conditions under the policy. The advertisements issued by the insurers
should not mislead the insuring public.
All insurers are required to set up proper grievance redress machinery in their head
office and at their other offices.
The Authority takes up with the insurers any complaint received from the
policyholders in connection with services provided by them under the insurance
contract.
8/7/2019 BIPIN RELA[1][1]. PROJECT
39/87
MARKET SHARE ANALYSIS
PARTICULARS 2004-05 2005-06 2006-07
LIC 87.7 71.04 71.44
PRIVATE PLAYERS 12.3 28.96 28.56
growth in market share of private
players
87.7
71.04
12.3
28.96
0
10
20
30
40
50
60
70
80
90
100
2004-05 2005-06
years
ma
rketshare(
LIC
Pvt. Players
8/7/2019 BIPIN RELA[1][1]. PROJECT
40/87
8/7/2019 BIPIN RELA[1][1]. PROJECT
41/87
INTRODUCTION
A well developed and evolved insurance sector is needed for economic development as it is
provides long term funds for infrastructure development and the same time strengthen the
risk taking ability.
Life insurance is also now being regarded as a versatile financial planning tool in
India. India being a country having a huge population of around one billion people with only
35%of the insurance population in India possessing life insurance. The country has a vast
potential that has been left untapped till now.
Therefore, what this has led to is the flooding of life insurance market with a number of
private players which in collaboration with recognized foreign companies promises to
deliver the best of services at the least price. All these companies are trying to grasp the
maximum of market share in life insurance sector. For that they are developing a channel i.e.
recruiting world-class insurance advisors/agents who sell their products or policies. Who are
these advisor/agents? Who can become an advisor/agent? How they are recruited in
RELIANCE INSURANCE CO. LTD.? How much they can earn as an insurance
advisor/agent? , these are some questions we have tried to answer in the project.
This report gives the details of recruitment and selection process of the life
insurance advisors. Thus by going through the report one will get to know about the
recruitment and selection process of life insurance advisors/agents in RELIANCE
INSURANCE CO. LTD. The report also covers the comparative study of the channel
development process in the company with that of Reliance.
8/7/2019 BIPIN RELA[1][1]. PROJECT
42/87
Channel Development
Channel development is basically to convince the potential customer to become advisors.
Now these advisors will convince some other people and that how channel is made. Now the
channel development involves a recruitment & selection process, which a person has to
undergo in order to become an advisor.
Reliance insurance has identified individual agents as its primary channel of distribution.
The Company places a lot of emphasis on its selection process. The agent advisors are
trained in-house to ensure optimal control on quality of training.
Reliance insurance invests significantly in its training programme and each agent is trained
for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before
beginning to sell in the marketplace. Training is a continuous process for agents at Reliance
insurance and ensures development of skills and knowledge through a structured programme
spread over 500 hours in two years. This focus on continuous quality training has resulted in
the company having amongst the highest agent pass rate in IRDA examinations and the
agents have the highest productivity among private life insurers.
201 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership
in 2005. MDRT is an exclusive congregation of the worlds top selling insurance agents and
is internationally recognized as the standard of excellence in the life insurance business.
Having set a best in class agency distribution model in place, the company is spearheading a
major thrust into additional distribution channels to further grow its business. The company
is using a five-pronged strategy to pursue alternative channels of distribution. These include
8/7/2019 BIPIN RELA[1][1]. PROJECT
43/87
the franchisee model, rural business, direct sales force involving group insurance and
telemarketing opportunities, banc assurance and corporate alliances.
Recruitment and selection of insurance advisors
As we know that Recruitment involves seeking and attracting a pool of people, from which
qualified candidates for the job vacancies can be chosen. Recruitment sets out the necessary
stages to clarify what kind of person is required, where he/she might be found and how to
make right choice.
Recruitment of life insurance agent is also a very impressive criterion because in this process
we need to recruit and select those persons who bear some special characteristics, which are
very necessary to sell insurance. Life insurance is an intangible product and it needs
insurance advisors who are having tremendous skills to sell an intangible product.
The key to good selection is preparation. So many people are found of their ability to pick a
good sales person and so often, that person is good but not at the particular job which needs
to be done. It is vital to be clear about what job needs doing and what kind of person would
do it best; and then to find that person. Once the plan has been decided, the choice of
candidate should be made carefully.
The effectiveness of the unit manager is dependent to great extent on the effectiveness of the
team of advisors supporting him, because an advisors works under a unit manager. So it is
very important to recruit a very good team of life insurance advisors who can give their best
to increase the effectiveness and the profit of the company. RELIANCE give very much
stress on it and to recruit only those people as a life insurance advisor who is having some
key skills specifies by the company.
Further we will show the recruitment and selection procedure of life insurance advisors in
Reliance insurance company ltd, and try to analyze whether it is the best process of
recruitment or company can do certain new modifications to enhance their recruitment
processor for the increment of companys effectiveness. From the next page, we will see the
recruitment and selection procedure of life insurance advisors.
8/7/2019 BIPIN RELA[1][1]. PROJECT
44/87
BE AN ADVISOR
Being an insurance advisor aspire to provide state of the art customer services and
opportunities and venues for enterprising people to grow and prosper.
Backed by latest technology, they will offer their customers:-
Complete and diversified product portfolio.
Faster and more accurate service.
Multi channel distribution system.
High quality financial advisers.
Eligibility norms provided by IRDA for becoming an insurance advisor
Person should be at least 18 years of age;
Person have completed 10+2;
Person should attain 100 hours training.
Other than this the person should possess
Good communication skills
Relationship skills
Confidence
Self motivation
Persuasion
Urge to be financially independent
8/7/2019 BIPIN RELA[1][1]. PROJECT
45/87
BEING AN ADVISOR WITH RELIANCE INSURANCE
Being a Reliance Insurance advisor can be an enriching and exciting career option. Its an
opportunity to associate with an industry leader, be in touch with the latest and finest
insurance practices from around the globe, and grow both personally and professionally.
Here are some of the benefits of being a Reliance Insurance Advisor:
Unlimited earning potential
A clear career path
All round support through exclusive advertising, your own in-house consultant,
and world-class training
A comprehensive benefit package
What does it take to be a Reliance Insurance advisor?
At Reliance Insurance, we believe that our Advisors are our ambassadors to the customers.
They are a key source of business for the organization, and are the continuing link with our
clients. That is why, we take a lot of care in recruiting and developing our advisor force, so
that we continue to set higher standards of quality in service and salesmanship. To cater to
the needs of the knowledge-oriented marketplace, we look for graduates who are service-
oriented, good communicators and enjoy meeting new people. Prior sales experience is an
added benefit.
Some of the qualities we seek are:
self- motivation
a master communicator
a go-getter
a graduate
8/7/2019 BIPIN RELA[1][1]. PROJECT
46/87
8/7/2019 BIPIN RELA[1][1]. PROJECT
47/87
OPPORTUNITIES FOR BEING AN ADVISOR
To be a part of world class sales team
Work from your office or residence
Work fulltime or part time
Earn commission, bonuses and incentives
Flexible career
Unlimited earning potential
8/7/2019 BIPIN RELA[1][1]. PROJECT
48/87
ROLE OF AN ADVISOR
An insurance advisor plays an important role. He is link between the insurance company on
the one hand and the prospect on the other hand. He has to understand the life insurance
needs of the prospect and offer to meet them by providing insurance solution in the form of
companys product. In your role an insurance advisor, unless you are convinced of your self-
worth, you may not be effective in your professional pursuit. The question arises whether an
insurance advisor is a professional like a doctor, a lawyer or a chartered accountant. There
are four basic requirements for any vocation to be called a profession:
It requires acquisition of expertise on the part of its practitioner and also its updating.
There has to be customer-orientation, so that the focus of the professional is on
satisfying the needs of the customer and his own needs get satisfied if the customer is
satisfied.
Certain of ethics in dealing with clients, fellow-professionals, etc, have to be
observed.
The vocation should be noble in that it contributes to the society.
8/7/2019 BIPIN RELA[1][1]. PROJECT
49/87
THE REQUISITES OF A TIDE AGENCY/ADVISOR IN RELIANCE
1. One copy of date of birth proof (10th mark sheet).
2. One copy of 12th class/graduation mark sheet.
3. One residence proof.
4. 8 passport size photographs.
5. PAN Card.
ADVISOR QUALITY PARAMETER
We have to identify right kind of quality people to be advisors with ICICI PRU. For this
purpose I targeted the following sets of people:
1. CA, CS, ICWA
2. DOCTORS
3. LAWYERS
4. TAX CONS
5. MARKETING EXECUTIVES OF DIFFERENT BANKS
6. UNEMPLOYED
7. RETIRED PEOPLE
8. HOUSE WIVES
9. LOCAL POLITICIANS
TECHNIQUES USED IN RECRUITMENT
To approach the above mentioned people I used the following methods:
8/7/2019 BIPIN RELA[1][1]. PROJECT
50/87
1. PROSPECTING : I decided to do prospecting in front of the BANKS AND
FINANCIAL INSTITUTIONS as a large number of marketing executives visit these
places throughout the day. I used to meet these people and offer them to join the
INDIAS leading PVT. Sector group ICICI as FINANCIAL ADVISORS. I got the
maximum recruitments through prospecting. The best thing about prospecting was
that at the end of the day I used to have more than 100 references to call for the next
day.
2. COLD CALLING : It was also a very successful technique in recruitment of
advisors. Though the conversion rate was very low but I got very potential advisors
through cold calling. I used business directories, yellow pages, telephone directories,
news papers for the same purpose.
8/7/2019 BIPIN RELA[1][1]. PROJECT
51/87
3. TAKING REFRENCES : Taking references is very essential in the insurance
business as this business is based on contacts. I took references from the following:
NAME
S
RELATIV
ES
FRIEN
DS
NEIGHBOUR
S
CUSTO
MES
DATABA
SE
8/7/2019 BIPIN RELA[1][1]. PROJECT
52/87
NAME
S
RELATIV
ES
FRIEN
DS
NEIGHBOUR
S
CUSTO
MES
DATABA
SE
8/7/2019 BIPIN RELA[1][1]. PROJECT
53/87
4. PAMPHLET DISTRIBUTION: I distributed pamphlets at Railway Stations, Bus
Stops, busy red lights, highlighting the advantages of being an advisor with
RELIANCE INSURANCE. I got a good response and call backs and was able to find
some good prospects through this procedure.
CORPORATE OBJECTIVE
At Reliance Life Insurance, we strongly believe that as life is different at every stage, life
insurance must offer flexibility and choice to go with that stage. We are fully prepared and
committed to guide you on insurance products and services through our well-trained
advisors, backed by competent marketing and customer services, in the best possible way.
It is our aim to become one of the top private life insurance companies in India and to
become a cornerstone of RLI integrated financial services business in India.
CORPORATE MISSION
To set the standard in helping our customers manage their financial future.
BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY RELIANCE LIFE
INSURANCE
INSURANCE PLANS AVAILABLE
1. Products (Individual Plans)
Savings (Endowment)
2. Reliance Endowment Plan
(formerly Divya Shree)
3. Reliance Special Endowment Plan
(formerly Subha Shree)
4. Reliance Cash Flow Plan
(formerly Dhana Shree)
http://www.reliancelife.co.in/products/ind_REP.asphttp://www.reliancelife.co.in/products/ind_RSEP.asphttp://www.reliancelife.co.in/products/ind_RCFP.asphttp://www.reliancelife.co.in/products/ind_RSEP.asphttp://www.reliancelife.co.in/products/ind_RCFP.asphttp://www.reliancelife.co.in/products/ind_REP.asp8/7/2019 BIPIN RELA[1][1]. PROJECT
54/87
5. Reliance Child Plan
(formerly Yuva Shree)
6. Reliance Whole Life Plan
(formerly Nithya Shree)
Pensions
7. Reliance Golden Years Plan
(formerly Bhagya Shree)
Investments
8. Reliance Market Return Plan
(formerly Kanaka Shree)
9. Risk / Protection
10. Reliance Term Plan
(formerly Raksha Shree)
Products (Group / Corporate Plans)
http://www.reliancelife.co.in/products/ind_RCP.asphttp://www.reliancelife.co.in/products/ind_RWLP.asphttp://www.reliancelife.co.in/products/ind_RGYP.asphttp://www.reliancelife.co.in/products/ind_RMRP.asphttp://www.reliancelife.co.in/products/ind_RTP.asphttp://www.reliancelife.co.in/products/ind_RCP.asphttp://www.reliancelife.co.in/products/ind_RWLP.asphttp://www.reliancelife.co.in/products/ind_RGYP.asphttp://www.reliancelife.co.in/products/ind_RMRP.asphttp://www.reliancelife.co.in/products/ind_RTP.asp8/7/2019 BIPIN RELA[1][1]. PROJECT
55/87
11. Risk (Protection )
Reliance Group Term Assurance Policy
(formerly Group Term Assurance Policy)
Reliance EDLI Scheme
(formerly EDLI Scheme)
12.Pensions
a. Reliance Group Gratuity Policy
(formerly Group Gratuity Policy)
b. Reliance Group Superannuation Policy
(formerly Group Superannuation Policy)
13.Reliance Money Guarantee Plan
Tax Benefits
INCOME TAX
SECTION
GROSS ANNUAL
SALARY
HOW MUCH TAX
CAN YOU SAVE?
RELIANCE LIFE
INSURUANCE PLAN
http://www.reliancelife.co.in/products/ebp_RCESP.asphttp://www.reliancelife.co.in/products/ebp_EDLI.asphttp://www.reliancelife.co.in/products/ebp_RCBP.asphttp://www.reliancelife.co.in/products/ebp_RCPP.asphttp://www.reliancelife.co.in/products/ebp_RCESP.asphttp://www.reliancelife.co.in/products/ebp_EDLI.asphttp://www.reliancelife.co.in/products/ebp_RCBP.asphttp://www.reliancelife.co.in/products/ebp_RCPP.asp8/7/2019 BIPIN RELA[1][1]. PROJECT
56/87
Sec. 80C Across All income
Slabs
Upto Rs. 33,990
saved on
investment of
Rs. 1,00,000.
All the life insurance
plans.
Sec. 80 CCC Across all income
slabs.
Upto Rs. 33,990
saved on
Investment of
Rs.1,00,000.
All the pension plans.
Sec. 80 D Across all income
slabs
Upto Rs. 3,399
saved on
Investment of
Rs. 10,000.
All the health insurance
riders available with the
conventional plans.
TOTAL SAVINGS
POSSIBLERs37,389
Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under
Sec. 80 D, calculated for a male with gross annual income
exceeding Rs. 10,00,000.
2.3 Reliance Policies
(1) Reliance Children Plans
What could make you happier than knowing, that your child's future is secure? Nothing, we
suppose. Which is why, Reliance Life Insurance brings to you Reliance Secure Child Plan, a
unit-linked Insurance Plan, that gives you the freedom to enjoy today with your child,
because his tomorrow is in safe hands.
Do you see your child becoming a trailblazer?
Will they create the ultimate symphony or give sports a new dimension?
Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free,
subject to the conditions laid down therein.
8/7/2019 BIPIN RELA[1][1]. PROJECT
57/87
Our children may just be the ones to end the arms race and wipe out poverty from the
face of the Earth. But for them to be able to aim for the skies, YOU NEED TO ACT
NOW!
Introducing Reliance Secure Child Plan - a unique life insurance cum savings plan. secure
the future of your child.
Key FeaturesInsurance cover on the life of child
Your child is completely protected - we will continue to pay the
premiums even if you are not alive
Life time income to child in the event of disability
Return Shield option to protect your investment returns
Liquidity in the form of partial withdrawalsCapital guarantee available on maturity and on death of the child for
basic and top-up premiums
Option to package with Accidental Death and Total and Permanent
Disablement Rider, Critical Conditions Rider and Term Life Insurance
Benefit Rider.
(2)Reliance Health + Wealth Policy
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS
BORNE BY THE POLICYHOLDER.
There are times when late working hours take precedence over your health check-ups. And
there are times when a visit to the doctor seems more important than dividends on your
shares. In the rat race to make money, we often forget to take care of ourselves.
We understand this predicament. Here is a plan that will ensure that your wealth keeps
increasing constantly and yet your health does not take a backseat. The Reliance Wealth
Health Plan. A plan that gives you the benefits of wealth & health.
8/7/2019 BIPIN RELA[1][1]. PROJECT
58/87
Life changes. And as it does, so do your priorities. After all, the circumstances of your life
can determine the type of health coverage you need.
India has made rapid strides in the health sector. Since Independence, life expectancy has
gone up markedly and survival rates have also increased, still critical health issues remain.
Infectious diseases continue to claim a large number of lives.
Reliance Wealth + Health Plan, a health insurance plan underwritten by Reliance Life
Insurance Company Limited, is designed to work in conjunction with contributions towards
savings.
Key FeatureA Unit Linked plan with Unique Savings Component
Twin benefit of market linked return and health protectionChoose from two different plan optionsFlexibility to take care of your familys healthFlexibility to switch between funds / plan optionsOption to pay Top-ups
8/7/2019 BIPIN RELA[1][1]. PROJECT
59/87
(3)Reliance Pension Policy
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS
BORNE BY THE POLICYHOLDER.
Retirement means different things to different people, while some want to relax and take a
trip around the world, some want to start up a venture of their own, and pursue a dream
harnessed for years. The power to make your autumn years special lies only with you. The
Reliance Super Golden Years Plan gives you the power and the right kind of solution - A
retirement plan that allows you to save systematically and generate the much-needed corpus
to make your olden years look golden.
Key Features
Invest systematically and secure your golden yearsA flexible unit-linked pension product that is different from traditional life
insurance products with Vesting Age between 45 & 70 yearsEight different investment funds to choose fromFlexibility to switch between fundsOption to pay Regular, Single as well as Top-up premiumsFlexibility to advance / extend your Vesting AgeTax free commutation up to one third of Fund Value at Vesting Age
8/7/2019 BIPIN RELA[1][1]. PROJECT
60/87
(4) Reliance Whole life insurance policy
Youve always loved your family. As a loving person you want to be rest assured that they
will be happy, even if something were to happen to you. With Reliance Whole Life Plan you
can be sure that your family will receive that timely financial support they need.
Go ahead, live your today to the fullest, without a worry about tomorrow.
Key Features
Insurance protection till age 85Choice of extending your insurance coverage till age 99Convenient Premium Payment Term
Wealth creation through bonus additionsMore value for your money by way of High Sum Assured Rebate Get Sum
Assured plus Bonuses in case of your unfortunate deathOption to add two Riders Critical Illness and Accidental Death Benefit and
Total and Permanent Disablement RiderPolicy Loan available after three full years premium payment
8/7/2019 BIPIN RELA[1][1]. PROJECT
61/87
RE SEARCH DESIGN
INTRODUCTION
A Research Design is the framework orplan for a study which is used as a
guide incol lectingand analyzi ng the data collected. It is the blue print that is
followed in comp leting the stud y. The basic objective of research cannot be
8/7/2019 BIPIN RELA[1][1]. PROJECT
62/87
attained without a proper research design. It specifies the methods and
procedures for acquir ing the information needed to conduct the research
effectiv ely. It is the overall operational patte rn of the project that
stipulates what information needs to be collected, from which sources and
by what methods.
OBJECTIVES OF STUDY
The main purpose of the training is to get the corporate exposure so as to know that how the
work is done in the company so as to bridge the gap between the academic institution and
corporate world.
It exposes us to technical skills that how the tele-calling is done to get
appointments and helping us to acquire social skills by drawing us into the
contact with real professionals.
It is a vehicle for introducing us to real-life situation, which cannot be stimulated
in classroom.
To know how the recruitment of the financial consultants is done.
To know how one can do personal financial planning.
To know the mindset of the customers about insurance their reactions and many
more.
The research design is of exploratory type as it tries to explore the customers perception to
make a reasonable comparison between the two companies.
NON-PROBABILITY
EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH
The research is primarily both exploratory as well as descriptive in nature.
The sources of information are both primary & secondary.
A well-structured questionnaire was prepared and personal interviews
were conducted to collect the customers perception and buying behavior,
through this questionnaire.
8/7/2019 BIPIN RELA[1][1]. PROJECT
63/87
8/7/2019 BIPIN RELA[1][1]. PROJECT
64/87
was arrived only after certain important changes were done. Thus my sampling came out to
be judgmental and convenient
Sampling Unit:
The respondents who were asked to fill out questionnaires are the sampling units. These
comprise of employees of MNCs, Govt.Employees, Self Employed etc.
Sample size:
The sample size was restricted to only 100, which comprised of mainly people from
different regions of Lucknow due to time constraints.
Sampling Area :
The area of the research was Lucknow, India.
ANALYSIS
Selection and Placement of Insurance Advisors
A selection system is a set of successive screens at any of which an applicant may be
dropped from further consideration. The process of selection of insurance advisors differs
from companies to companies depending upon the requirement. In RELIANCE the applicant
goes through various stages, the chances of selection get better as more and more stages are
cleared.
8/7/2019 BIPIN RELA[1][1]. PROJECT
65/87
Selection procedure: The following selection procedure is used by for the selection of life
insurance advisor in Reliance insurance company.
Preliminary interview: In this interview the applicant have face-to-face interaction
with the respective Unit Manager and clear out all queries and doubts about job.
After this interview session, the prospects give his conformation whether he is
interesting to join the organization or not.
Formal application: After the confirmation of the prospects the next step is to filling
up of application form with the submission of all necessary documents that are listed
below:
--Birth certificate (10th class passing certificate, driving license,
etc)
--Address proof (ration card, voter card, telephone bill, etc)
--6 passport size color photographs
--Highest qualification certificates (mark sheet)
--A demand draft of Rs. 610 on the favor of Reliance
insurance.
After checking the form and all documents the operations department give its confirmation
that the prospects is genuine and is subject for further process.
Declaration of date of training and venue: After the previous step, operation
department give the details about the details about training date and about the venue
of the training. The training is a necessary part of the selection procedure. This
training is under the curriculum of Insurance Regulatory And Development
Authority (IRDA). The duration is 100 hours and it can be get in one ways:
Full time training (10;00 AM to 05;00 PM)
Testing: After completing the training conducted by IRDA, a test is conducted on the
same venue. This test is taken based on the training and contains the syllabus, which
is prescribed by the IRDA. The test and previous training is necessary for every body
that wants to become an insurance advisor.
8/7/2019 BIPIN RELA[1][1]. PROJECT
66/87
8/7/2019 BIPIN RELA[1][1]. PROJECT
67/87
8/7/2019 BIPIN RELA[1][1]. PROJECT
68/87
Q.2 GENDER CLASSIFICATION OF SURVEYED RESPONDENTS
CHART 2:
Analysis:
Total number of male respondents 60
Total number of female respondents 40
Q.3 CUSTOMER PROFILE OF SURVEYED RESPONDENTS
Analysis:
8/7/2019 BIPIN RELA[1][1]. PROJECT
69/87
43% of the respondents are working professionals,
23% are students and 18% are into business. Therefore the target market would be
working individuals in the age group of 18 25 years having surplus income,
interested in good returns on their investment and saving income tax.
Q.4 INSURED PERCENTAGE
Chart 4:
ARE Y
13%
87 % of respondents were insured on own life and on life of their family
members.
8/7/2019 BIPIN RELA[1][1]. PROJECT
70/87
T
Y
P
E
O
F
P
L
A
N
2
9
%
2
3
%
2
8
%
2
0
%
MONEYB
ACK
ENDOWME
NT
PENSION
PLAN
ULIPs
So we had 13 % of potential customers to approach.
Q.5 POPULAR LIFE INSURANCE PLANS
CHART 5 :
Analysis:
Money back Policies have been most popular and also the endowment plans.
8/7/2019 BIPIN RELA[1][1]. PROJECT
71/87
As people today are more aware about financial planning, so people of the age 30 years
have planned for their Retirement now.
ULIPs are fast gaining popularity as they provide investment
benefit with Insurance.
Q.6 ARE YOU AWARE ABOUT FINANCIAL PLANNING ?
D
F
Analysis
98% of the respondents were aware about Financial Planning
8/7/2019 BIPIN RELA[1][1]. PROJECT
72/87
Q.7 CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM.
Analysis:
41% of the respondents would be willing to spend between Rs. 10001 Rs. 25000
for life insurance. 27 % would be willing to spend between Rs. 6001 Rs. 10000 per
annum. Only 15% would be willing to spend more than Rs. 25000 per annum as life
insurance premium.. Hence to capture a larger part of the market the company could
introduce more reasonable plans with lesser premium payable per annum.
8/7/2019 BIPIN RELA[1][1]. PROJECT
73/87
Q.8 FACTORS THAT MOTIVATE RESPONDENTS TO PURCHASE INSURANCE
Analysis:
33% of the respondents purchase life insurance to secure their families
33% take life insurance to get high returns
17% purchase insurance on the advice of their friends
13% purchase insurance because of the influence of advertisements. They can invest
their money in the equity market, debt market, money market or a combination of
these. The debt and money markets usually have low risk attached whereas the equity
market is a high risk investment option.
Q9. MINIMUM
EXPECTED
RETURN ON
INVESTMENT
8/7/2019 BIPIN RELA[1][1]. PROJECT
74/87
Analysis:
18% of the respondents would like 16 20% returns,
17% would like returns between 21 25% and 17% would like returns of 11 15%
on their investments. Therefore the average return on investment should be at least
16 20 %.
Q.10 DATA GIVES PEOPLES PERCEPTION ON APPROPRIATE AGE
FOR BUYING INSURANCE?
8/7/2019 BIPIN RELA[1][1]. PROJECT
75/87
Analysis: 29% of the respondents are with the view that insurance should be
bought after the age of 25 years.
10% of the respondents are with the view that insurance should
be bought after the age of 35 years.
Whereas, 60 of the respondents are with the view that buying
of insurance do not have any thing to do with age i.e. there is no
age limitations. It can be purchased any time according to the
need.
RESULTS
From the above analysis it can be concluded that the competition is very tough even in the
procurement and retention of potential advisors (in the channel development process).
Reliance is the market leader in the life insurance market of private players and data show
that it is giving stiff competition to Reliance Insurance Company.
1. As the people think that insurance is a tool to protect their family & a tax saving device.
They are aware of the fact & realizing its, importance. The company should try to expand &
build up its infrastructure because there is a large potential for insurance in India.
2. Company should come up with its more branches in India. With the objective and goals to
meet the demands & expectations of the public. Because the entrance of private players will
increase the competition and it would be a tough task to secure a good position in market.
3. Since Reliance Life Insurance is leading with several companies policies it should be
easy for them to penetrate into the market and secure a good position if they pay greater
attention to the service part provided to their customer and thereby forming a long and
trusted relationship.
8/7/2019 BIPIN RELA[1][1]. PROJECT
76/87
4 .As seen from the survey that at present 70% of the customer are having insurance policy
out of which 87.5% of the customer are planning for new investments. So it can be a good
potential for the company and they should make an attempt to trap these customers.
5. 43% of the customer is even ready to go for insurance if a service provider away from
their home is providing it. But intend they should provide good products and services. The
company should try to convince these customers and get them in its favour.
Though customers hope a brighter future of the company yet it has to apply a lot of efforts to
bring the market under its control.
LIMITATIONS
As we all know that for every good work there should be some leakages also. Here
leakage means some drawbacks. What I had found in my quest SUMMER TRAINING
which are expected to be as follows:
Lack of proper advertisement over the market.
Growing awareness is very low.
Segmented area is very specific.
Network over the work is very exhaustive.
Company always believes their own channels.
Flow of information moves very slow.
Carelessness in selection procedure.
8/7/2019 BIPIN RELA[1][1]. PROJECT
77/87
8/7/2019 BIPIN RELA[1][1]. PROJECT
78/87
8/7/2019 BIPIN RELA[1][1]. PROJECT
79/87
CONCLUSION AND RECOMMENDATIONS
Over the next five years the Life Insurance Sector would change as it will undoubtedly be
substantially larger than it is at present and rate of returns will vary according to the fall and
rise in the market like it happened recently when market just was going up and up that the
Sensex even touched 20000 and when it fell it even went to 15000 so this variation will
always be there no doubt.
But it is really a difficult task to get clients for insurance but not impossible too if done in a
systematic way and with proper attention and sincerity.
Moreover, the success of marketing also depends on the way you interact with the customers
and how frequently you can convince the customer by getting into their mind.
8/7/2019 BIPIN RELA[1][1]. PROJECT
80/87
Tele-calling no doubt is helpful if further process is done with sincerity but it must be
effective in itself too like if a person is out of the town he resides in then just take time to
call again later so as not to disturb him.
Another thing is that you must talk to them being friendly so that they won t think that you
are wasting their time and many other things should be kept in mind while talking to the
customers means one must know business ethics and techniques, etiquettes no doubt
required.
Try and go for indirect marketing for insurance as it becomes easy to develop contacts if
you are having references.
Yes, the very important thing is to have the good customer relations and keep them up.
8/7/2019 BIPIN RELA[1][1]. PROJECT
81/87
Annexure
8/7/2019 BIPIN RELA[1][1]. PROJECT
82/87
QUESTIONNAIRE
Awareness of Financial Planning and Consumers Perception about Insurance
Industry
Name: ________________________Age: _________________________
Gender: MALE FEMALE
Marital Status: Married Single
Occupation: ___________________
Contact No: __________________
1) ARE YOU AWARE ABOUT WHAT IS FINANCIAL PLANNING?
YES NO
2.DO YOU HAVE ANY INSURANCE POLICY?
YES NO
3.WHICH INSURANCE POLICY DO YOU HAVE?
LIFE NON-LIFE BOTH
4. WHICH COMPANYS INSURANCE POLICY YOU PREFER
THE MOST? (RANK THEM)
a) LIC
b) RELIANCE LIFE INSURANCE
c) SBI LIFE INSURANCE
d) ING VYSYA LIFE
E) TATA AIG LIFE
82
8/7/2019 BIPIN RELA[1][1]. PROJECT
83/87
F) ANY OTHER ________( Specify)
6. WHICH PLAN ATTRACTED YOU TO BUY IT?
(RANK THEM)
a)MONEY PLAN
b)PENSION PLAN
c)ENDOWMENT PLAN
d)ULIPS
e) ANY OTHER _________ (Specify)
7.WHICH IS MARKET SHARE OF THE COMPANY?
(RANK THEM)
a)HDFC STANDARD LIFE
b)BIRLA SUN LIFE
c)TATA AIG
d) ICIC PRUDENTIAL
e)OTHER
8. ARE YOU SATISFIED WITH THE POLICY?
a) SATISFIED SAVING TOOL
b) NOT SATISFIED
c) NOT RESPONDING
9.MINIMUM EXPECTED RETURN OF INVESTMENT?
a) 5%
b) 10%
(c)15%
83
8/7/2019 BIPIN RELA[1][1]. PROJECT
84/87
d)ANY OTHER
10. WHICH FACTOR TO BE MOTIVATES RESPONDENTS TO PURCHASE
INSURANCE?
a)ADVERTISEMENTS
b)HIGH RETURNS
c) ADVICE FROM FRIENDS
d)FAMILY RESPONSIBILITIES
e)OTHER
(THANK YOU)
84
8/7/2019 BIPIN RELA[1][1]. PROJECT
85/87
8/7/2019 BIPIN RELA[1][1]. PROJECT
86/87
REFERENCES
Books:
Kotler Philip-Principles of Marketing
(PearsonPublishers,12th Edition,2006)
Saxena Rajan-Marketing Management
(Tata McGraw Publishers,2nd Edition,2003)
Kothari C.R-Research Methodology
(New Age International Publishers,2nd Edition,2004)
Magazines:
Business World
Business Today
Outlook Money86
8/7/2019 BIPIN RELA[1][1]. PROJECT
87/87
Websites:
www.reliancelife.com
www.irdaindia.org
www.financialexpress.com