Reliance Life Insurance Co. Ltd.

A PROJECT REPORT ON
SUMMER TRAINING AT
RELIANCE LIFE INSURANCE CO. LTD.

TOWARDS PARTIAL FULFILLMENT OF
CURRICULUM OF TWO YEAR FULL TIME
M.B.A. PROGRAM

AT R. K. COLLEGE OF BUSINESS
MANAGEMENT, RAJKOT.

PREPARED BY :

GOSWAMI SONALI

V.

SUBMITTED TO :
Ms. VARSHA VIRANI
( FACULTY, RKCBM, RAJKOT)

PREFACE

Summer training is an integral part of the management
program. We could realize and appreciate its importance only
after undergoing training at Reliance Life Insurance Company
Limited. It is the missing link between the Academia and
the practical aspects of the Corporate world. We got a
chance to apply our knowledge to real world situation.
Reliance Life Insurance Co. Ltd. has a very unconventional
style of training summer trainees. They made us feel like
working as a part of the organization, wherein we had a
chance to try ourselves at marketing, new adviser
recruitment, planning and executing various schemes and
undertaking a research, a survey on behalf of the
organization. All in all, it was a unique experience to
undergo training at Reliance Life insurance Company
Limited.

Ahmedabad

Goswami Sonali

2

V.

ACKENOLEGEMENT

We would like to thank Mrs. Priyanka Shreevastava, Sales
manager, Reliance Life Insurance, Ahmedabad, for providing us a
chance to undergo summer training at this organization. We
sincerely acknowledge her constant efforts with which sevaluated
each of us and designed further course of the training. We owe
to her a sense of gratitude for the knowledge she imparted with
us. We would like to thank Mr. Aarif Pathan, Branch Manager,
for his supervision and his valuable guidance throughout the
research. He pointed out to us our drawbacks and shaped our
skills. His co-operation and guidance during our campaigns at
their respective sales territories. We cannot forget our respective
Advisor at Reliance Life Insurance, Mr. Satish Gosai, who helped
in one way or other throughout our training.
We are extremely thankful to our faculty Ms. Varsha Virani for
their kind co-operation throughout the training program. Finally
we express our thanks to all those whom we cannot remember
right now, but who helped us.

Sonali V. Goswami

3

EXECUTIVE SUMMARY

To start with, in the very first chapter I am giving an introduction
to the Life Insurance of the project which we are doing the
project. The introduction include principal of life insurance,
history & introduction of IRDA etc.
The second chapter I am giving introduction to the Reliance Life
Insurance Company Limited. In this chapter I have included
Founder name, History of Reliance Life Insurance, objectives,
Head Office address & state name of its branch etc.
The Third Chapter is Product Mix of Reliance Life Insurance. In
this chapter I have included Traditional Plans & Unit Link Plan.
The Fourth Chapter I am giving report on Human Resources
Department of Reliance Life Insurance. I have included
Recruitment, Selection Procedure, Training & Development,
Career Planning, Performance Appraisal, Organization Chart,
Communication & Employee Benefits & Incentives etc.
In the Chapter Five & Six I am giving report on Marketing &
Finance Department of Reliance Life Insurance. I have included
in Marketing department Distribution Channel, Sales Promotion
Schemes & Comparative Analysis etc. and Finance Department

4

Money Manager, Power of Compounding, Taxation & Fund
Performance etc.
The Seventh Chapter I am giving report on
Research
Methodology of Reliance Life Insurance. I have included Data
Source, Sampling Area, Sampling Method, Sample Size, Research
Instrument, Method of Contact & Method off making an
approach for sales, data collection, questionnaire and its
analysis.
In chapter Eight & Nine I would be giving some suggestions &
lastly I have concluded the whole project.

CERTIFICATE

This is to be certified that Miss. Sonali Goswami has
completed her summer training & prepared a project
report on general management of
Insurance Company Limited

for

Reliance Life -

the

requirement

Of practical study for M.B.A. (Semester –III).

5

Director

Prof. In charge

TABLE OF CONTENTS
Sr.
No.
1

CONTENTS

Page
No.

Introduction to Life Insurance
 Principles of Life Insurance
 History of Insurance
 The
Insurance
Regulatory
Development Authority (IRDA)

6

8 – 17

and

2

Reliance Life Insurance Company
 History
 Objectives
 Head Office
 Branches
 Future Plan

18-22

3

Product Mix
 Traditional Plans
 Unit Link Plan

23-40

4

Human Resources Department
 Recruitment
 Selection Procedure
 Training & Development
 Career Planning
 Performance Appraisal
 Organization Chart
 Communication
 Employee Benefits & Incentives

41-48

5

Marketing Department
 Distribution Channel
 Sales Promotion Schemes
 Comparative Analysis

49-59

6

Finance Department
 Money Manager
 Power of Compounding
 Taxation
 Fund Performance

60-64

7

Research Methodology
 Data Source
 Sampling Area

65-76

7

Sampling Method
Sample Size
Research Instrument
Method of Contact
 Method off making an approach for sales




8

Suggestion

77

9

Conclusion

78

10

Bibliography

79

11

Annexure
 Questionnaire

80-84

8

CHAPTER : 1

INTRODUCTION TO LIFE INSURANCE
People facing the same risk make contribution to a
common fund. The assumption is that the contribution
made, represents equal liability of risk happening to any of
the individuals based on past experiences of the average
number of people who suffer such losses.
Life Insurance is a branch of insurance in which
compensation is made available to designated survivors of a
decreased person, or to a person on their own survival after
a fixed term of years, in return for payments, or premiums.
Life Insurance is based on the theory of probability, which
determines the level of premium to be paid, and on compound
interest, which determines the growth over time, through
investment, of the fund constituted by the intake of premiums.
There are special legal principles, which apply to insurance and
many are based on the “ Law of Contract’, which is governed by
the contract act,1872.
Insurance is a contract between two parties whereby one party
called insurer undertakes in exchange for a sum called premium
to pay the other party called insured a fixed amount of money on
the happening event. Insurance indemnifies asset has a value
and its generate the income to its owner.

9

The income has been created through the expenditure of effort,
time and value. Every asset has expected lifetime during which it
may be depreciate and at the end of life period it may not be
useful, till then the expected to the function. Some times it may
cases to exit or mat not be able to function partially like burglary,
collisions, earthquake, fire, flood, theft, etc. These types of
possible occurrence are risk.
Future is uncertain, no body knows what happen? It may or may
not? Insurance is a concept of risk management – the need to
manage uncertainty on account of above stated risk. Insurance is
a way of financing these risks either fully or partially. Insurance
business in India can be broadly divided into two categories such
as Life Insurance and General Insurance of Non-life insurance.
But we focus on the life insurance for the purpose of this project.
Earlier to allowing private to operate, it was necessary to cross
the legislative hurdles, such as the passage of Insurance
Regulatory and Development Authority Act 1999 and amendment
of Life Insurance and General Insurance Corporation Acts.
The words ‘cheap’ and ‘life insurance’ are not normally associated
with one another, let alone appear in the same sentence.
But this is increasingly becoming something of a misconception.
The life insurance market, despite the entrenched and popular
perception, is probably more competitive today than it has ever
been in the past. This is largely due to a sea change in the life
insurance marketplace and radical rethinking in the business
operations of insurance companies.

10

Because the world wide web has widened choice in a way
unimaginable just twenty years ago, insurance companies have
faced the biggest ever challenge to their business structures.
Before the internet there was little incentive for insurance
companies to evolve when most customers rarely, if ever, obtained
more than two or three life insurance quotes.
But when potential customers suddenly can go online and get
quotations from literally hundreds of rival firms, what occurs is
the life insurance market equivalent of global climate change.
Mirroring Darwin’s Theory of Evolution, it is then survival of the
fittest as life insurance companies complete for the available
resources.
The outcome of all this evolution is you, the consumer, have
become a prized item that can only be lured by the most
attractive life insurance deals possible. Only by putting in the
extra effort to cut costs, streamline and modernize business
processes can the successful life insurance company hope to
thrive and prosper in today’s highly competitive and discerning
marketplace. By adapting to the new business climate and
landscape, life insurance providers can put themselves into a
position to offer the cheap life insurance products demanded by
the public.

The answer to the question, “ Is there such a thing as cheap life
insurance?” must then be, “Yes, and right here’s a good place to
start your hunt!”
It would be wrong, though, to assume all this ‘cost cuttery’ to
drive premium down comes with the price tag of inferior quality
life insurance policies or poor customer service. Insurance

11

companies are playing a long game here. With a business
environment rendered almost unrecognizable to a past
generation, life insurance companies are investing in the present
to secure a future. This means balancing out across the board
efficiencies with the need to improve value for money to the
customer and maintain standards of customer service.
Without a doubt, there are plenty of cheap life insurance deals
around. The good news is that you have landed in the right place
to find exactly what you are looking for.
Several MNCs, in joint Venture with Indian private sectors firms,
have started operation in a big way. The prominent private
players active right now are, Reliance Life Insurance Company,
ICICI prudential Life, Max New York Life, HDFC Standard Life,
Birla Sun Life and Bajaj Allianz.
Who’d be a dinosaur life insurer when it’s the warm blooded
mammalian life insurance companies that rule the roost?
PRINCIPLES OF LIFE INSURANCE
1. Utmost Good Faith.
2. Insurable Interest.
1.Utmost Good Faith :
“ A positive duty to voluntarily disclose, accurately and fully facts
material to the risk being proposed, whether or not.”
The insurer needs to be aware of all the details of the health,
family, history, habits, and other facts about the proposer. It is

12

important that the proposer declares all the facts properly and in
utmost good faith.
 The statement by the proposer was inaccurate or false.
 Such an inaccurate or false statement related to a fact that
was material to the contract.
 Such an inaccurate or false statement was deliberately and
fraudulently.
 The proposer knew the correct facts at the time of making
the false statement.

2.Insurable Interest :
The requirement of Insurable interest dates back to the 18th
century. During that time, in order to carry out an insurance
contract the person insured need not be informed about it.
Therefore there 3rd parties insuring a person for a certain sum
without the insured knowing of it.
This arrangement was abused and subject to malicious
intentions. One should insure a 3rd party and get the insured
killed and benefit monetarily from the proceeds. Thus, the
objective of insurable interest is to prevent people from wagering
or gaming on the lives of others.
“ Relationship with the subject matter which is recognized in law
and gives a legal right to insure that person.”
The insurable interest must be a monetary interest.

13

 Every person has an insurable interest in his/her life. The
restrictions in the application of this is the means with
which to pay the premium.
 Relationships by blood : A father has an insurable in the life
of the minor child. The legal position about children’s
assurance is not quite clear. It is assumed that parents have
insurable interest in the life of a so long as he/she is a
child.
 Relationship by Marriage : Husband and wife have a
automatic unlimited insurable interest in each other’s lives.
 Business Relationships
 Business Partners

History of Life Insurance :

14

The concept of insurance is believed to have emerged almost
4500 years ago in the ancient land of Babylonia where traders
used to bear risk of the carvan by giving loans, which were later
repaid with interest when the goods arrived safely.
The concept of insurance as we know today took shape in 1688
at a place called Lloyd’s Coffee House in London where risk
bearers used to meet to transact business. This coffee house
became so popular that Lloyd’s became the one of the first
modern insurance companies by the end of the eighteenth
century.
Marine insurance companies came into existence by the end of
the eighteenth century. These companies were empowered to
write fire and life insurance as well as marine. The Great Fire of
London in 1966 caused huge loss of property and life. With a
view to providing fire insurance facilities, Dr. Nicholas Barbon set
up in 1967 the first fire insurance company known as the Fire
office.
The early history of insurance in India can be traced back to the
Vedas. The Sanskrit term ‘Yogakshema’ (meaning well being), the
name

of

Life

Insurance

Corporation

15

of

India’s

corporate

headquarters, is found in the Rig Veda. The Aryans practiced
some form of ‘community insurance’ around 1000 BC.
Life insurance in its modern form came to India from England in
1818. The Oriental Life Insurance Company was the first
insurance company to be set up in India to help the widows of
European community. The insurance companies, which came
into existence between 1818 and 1869, treated Indian lives as
subnormal and charged an extra premium of 15 to 20 per cent.
The first Indian insurance company, the Bombay Mutual Life
Assurance Society, came into existence in 1870 to cover Indian
lives at normal rates.
The Insurance Act, 1938, the first comprehensive legislation
governing both life and non-life branches of insurance were
enacted to provide strict state control over insurance business.
This

amended

insurance

Act

looked

into

investments,

expenditure and management of these companies.
By the mid- 1950s there were 154 Indian insurers, 16 foreign
insurers, and 75 provident societies carrying on life insurance
business in India. Insurance business flourished and so did
scams, irregularities and dubious investment practices by scores
of companies. As a result the government decided to nationalize

16

the life assurance business in India. The Life Insurance
Corporation of India (LIC) was set up in 1956. The nationalization
of life insurance was followed by general insurance in 1972.

Time line in insurance history
Major Landmarks


1818
British introduced the life insurance to India
with the
establishment of the Oriental Life Insurance
Company
in Calcutta.

1850
Non life insurance started with Triton
Insurance Company.

1870
Bombay Mutual Life Assurance Society is the
first India owned life insurer.

1912 The Indian Life Assurance company Act enacted
to regulate the life insurance business.


1938

The Insurance Act was enacted.


1956
Nationalization took place. Government took
over 245 Indian and foreign insurers and provident
societies.

17


1972
Non-life business nationalized, General
Insurance Corporation (GIC) came into being.

1993 Malhotra committee was constituted under the
chairmanship of former RBI chief R. N. Malhotra to draw
a blue print for insurance sector reforms.

1994 Malhotra committee recommended reentry of
private players.

1997 IRDA (Insurance Regulatory and Development
Authority) was set up
as a regulator of the insurance
market in India.


2000 IRDA started giving license to private insurers.
ICICI Prudential, HDFC were first private players to sell
insurance Policies.

2001 Royal Sundaram was the first non-life private
player to sell an
insurance policy.

2002 Bank allowed to sell insurance plans as TPAs
enter the scene, insurers start setting non-life claims in the
cashless mode.

18

The Insurance Regulatory
Authority (IRDA)

and

Development

Reforms in the Insurance sector were initiated with the
passage of the IRDA will in Parliament in December 1999. The
IRDA since its incorporation as a statutory body in April 2000
has fastidiously stuck to its schedule of framing regulations
and registering the private sector insurance companies. The
other decisions taken simultaneously to provide the
supporting systems to the insurance sector and in particular
the life insurance companies was the launch of the IRDA’s
online service for issue and renewal of licenses to agents.

19

The approval of institutions for imparting training to agents
has also ensured that the insurance companies would have a
trained workforce of insurance agents in place to sell their
products, which are expected to be introduced by early next
year.
Since being set up as an independent statutory body the
IRDA has put in a framework of globally compatible
regulations. In the private sector 12 life insurance and 6
general insurance companies have been registered.

CHAPTER : 2

RELIANCE LIFE INSURANCE COMPANY
LIMITED

20

Dhirubhai H. Ambani
Founder Chairman,
Reliance Industries Limited, India
December 28, 1932 - July 6, 2002
Major Group Companies: Reliance
Industries Limited,
India's largest private sector company.
 HISTORY
Reliance Life Insurance Company Limited is a part of Reliance
Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group.
Reliance Capital is one of India’s 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 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.

21

Reliance Life Insurance is another step forward for Reliance
Capital Limited to offer need based Life Insurance solutions to
individuals and Corporates.

Opportunity has a new name – “Reliance Life Insurance Company
Limited”. If you have been waiting for that one job which will
enrich your professional and personal life then you are at the
right place. At Reliance Life Insurance Company Limited our
mission is to be the best in every sphere - business results,
customer care and employee focus.

 OBJECTIVES :
1

Result Oriented

2

Performance Driven

3

Customer Focused

4

Learning & Development Oriented

5

Employee centric

6

Informal & fun

7

Human Resources

8

Finance

HEAD OFFICE

22

Reliance Life Insurance Company Limited has a head office in
Chennai (India). The whole company is operated in Chennai.
The major decision is taken at a head office and it followed by
all branches of the country.

Reg. Office : 9, Cathedral Road,
Chennai – 600086.
India.
Telephone No. 28118400 Fax: 28117669

BRANCHES
1. ANDHRA PRADESH
 VISHAKAPATNAM
 OLD GAJUWAKA
 KUNOOL
 GUNTUR
 SECUNDERABAD & MANY OTHER CITY…
2. GUJARAT
 AHMEDABAD
 VADODARA
 JUNAGADH
 NADIAD
 JAMNAGAR

23

 BHAVNAGAR
 SURAT

3. KARNATAKA
 BANGALORE
 JAYANAGAR
 INDIRANAGAR
 BELLARY
 BHARWAD
 GADAG & MANY OTHER CITY…
4. NEW DELHI
5. KERALA
 ERNAKULAM
 ALLEPEY
 PALAKKAD
 KOLLAM
 CALICUT
 ALUVA
 KASARGODE & MANY OTHER CITY…
6. TAMILNADU
 CHENNAI
 ANNANAGAR
 TAMBARAM
 SALEM
 DHARMAPURI

24

 HOSUR
 DINDUGUL
 VELLORE & MANY OTHER CITY…

 FUTURE PLANS
2006-2007
 Forty- four branches to be opened across the
country in the coming months; and a pan India
presence with 162 branches in the coming year.
 A state of the art customer care centre will provide
continuous, responsive services to the caller and
promptly address queries, collate feedback and
suggestions from the caller, who may be both
prospective and existing clientele and from channel
partners in Chennai & Mumbai.

25

CHAPTER : 3

PRODUCT MIX
1.
2.

Traditional Plans
Unit Link Plan

1.Traditional Plans :
There are five sub plans in this plan.





Reliance Endowment Plan (Divya Shree)
Reliance Special Endowment Plan
(Subh Shree)
Reliance Cash Flow Plan (Dhan Shree)
Reliance Child Plan (Yuva Shree)

26



Reliance Whole Life Plan (Nitya Shree)

1.► Reliance Endowment Plan (Divya Shree).
Reliance Life Insurance’s Reliance Endowment Plan is the
key to all your financial needs. It is an inexpensive and easy
way to protect you, your family or your business.
In a nutshell this plan will keep you financially prepared for
all the special occasions in your life - your daughter’s
wedding, your child’s university education or even a new
office for your business - by eliminating the burden that a
shortage of money creates.
In the event of your untimely death, Reliance Endowment
Plan will also assist your loved ones through this difficult
time by the financial support that it provides.
Reliance Endowment Plan also gives you the additional
benefit of participating in the company’s profits, which you
will receive at the end of the policy period.
Reliance Endowment Plan is an endowment plan, where you
decide how much you would like to set as your sum assured
based on your current financial position and your expected
future expenses. You also get to choose how long you would like
your policy to operate. Then all you need to do is pay your single
premium or regular premium for the policy term.

27

As soon as you pay your single premium, or as long as you
continue to pay your regular premiums, your policy will
participate in the profits of our company. This means that each
year, we will declare a bonus, the amount of which may vary from
one year to the next. The cash value of the bonuses which you
accumulate over the policy term will be paid to you along with
the basic sum assured when it falls due.
Any healthy male or female, who has completed the age of 5 years
and is not older than 65 years can avail of this policy.
There are limiting conditions as given in the table below:
MINIMUM

MAXIMUM

Entry Age

5

65

Maturity Age

18

75

5

35 (regular
premium)
15 (single
premium)

Sum Assured

Rs 25,000
or as determined by the minimum
premium

Rs 5,00,000
(entry age below
18 years)
No Limit(entry
age 18 and
above)

Premium

Rs 2,000 for annual
Rs 1,500 for half-yearly
Rs 750 for quarterly and
Rs 250 for monthly*
premium frequency
Rs 25,000 for single premium

Policy Term

No limit

No limit

The modes of payment of premiums permitted are yearly, halfyearly, quarterly and monthly. The policy can also be availed

28

under salary deduction scheme. When the mode of payment of
premium is half-yearly, quarterly and monthly, the premiums will
be rated up. The rating up factors are:
Half-yearly
Quarterly
Monthly

1.02
and

1.04

The modes of payment of premiums permitted are yearly, halfyearly, quarterly and monthly. The policy can also be availed
under salary deduction scheme. When the mode of payment of
premium is half-yearly, quarterly and monthly, the premiums will
be rated up. The rating up factors are:
Half-yearly
Quarterly
Monthly

1.02
and

1.04

Premium rebate is allowed on high sum assured policy.

Sum Assured

Premium
Rebate
per
1,000
Sum
Assured

Rs 1,00,000 - Rs
2,49,000
Re 1
Rs 2,50,000 - Rs Rs 2
4,99,000
Rs 5,00,000 - Rs
9,99,000

Rs 3

29

Rs 10,00,000 and Rs 4
above
2.► Reliance Special Endowment Plan (Subh Shree).
This insurance policy is designed for people who wish to
combine savings with extended security. The unique feature
of this policy is that life protection continues for five years
after you have stopped the payment of premium. Payment of
sum assured at the end of premium paying term and
extension of life cover thereafter for the full sum assured for
a period of 5 years, are characteristics of the policy. This
plan also participates in the profits.
The special benefit under this policy is that it ensures securing a
fund for the future when it is most needed and gives much
needed financial security for the family.
The unique feature of this policy is that the risk cover continues
for the full sum assured for an extended period of 5 years even,
after payment of the full sum assured at the end of the premium
paying term.
This policy also participates in the profits. Bonus is compounded
yearly (i.e. bonus declared in the previous year earns bonus in
the next year) and is payable at the end of the policy term. Any
healthy male or female, who has completed the age of 12 and is
not older than 65 can avail of this policy.
The minimum amount for which a Reliance Special Endowment
Plan policy can be taken is Rs.25,000. There is also a limitation

30

on the minimum premium paying term which is 10 years, while
the maximum term is 40 years.
The full sum assured under the policy will be paid at the end of
the premium paying term instead of waiting till the maturity of
the policy, that is, a full five years in advance. Again, at the end
of the policy term, the full bonuses will be paid.
If death takes place during the term when the premiums are still
being paid, the full sum assured along with accrued bonus up to
the date of death will be paid immediately.
If death takes place after all the premiums have been paid , an
amount equal to the sum assured under the policy along with
accrued bonuses up to the date of death will be paid
immediately. This will be in addition to the sum assured already
paid at the time of completion of premium paying term. For a
marginal additional premium payment, you can opt to have the
Accident benefit and/or the Critical Illness benefit.
Subject to certain conditions, if death of the policy holder is
caused by an accident, an additional lump sum is payable.
This benefit provides a lump sum payment in the event of a
specified serious illness like a stroke or heart attack suffered by
the Life Assured.
Provided premiums have been paid for three continuous years,
the sum assured as stated above will be reduced in proportion to
the premiums paid to total amount of premiums payable.
Bonuses already declared will not reduce but the policy will cease
to participate in future profits. The reduced sum assured is
payable at the end of premium paying term or on earlier death.
Vested bonuses are payable on survival to maturity date or on

31

earlier death. If you have opted for additional benefits, these will
be available only so long as premiums are paid regularly. In any
case, Accident and Critical Illness benefits are not available
beyond the age of 64 years.
There is the usual exemption from tax, for premiums paid, as per
the IT Act. The money you have invested earns interest and
comes to you in the form of terminal benefits and Bonus, without
the insecurities attached to the ups and downs of the money
market. Further, at Reliance Life Insurance, we offer you the best
of courtesy, prompt service and a high level of financial security.
3.► Reliance Cash Flow Plan (Dhana Shree).
This insurance policy is designed for those who have a
recurring need for reinvestment in business or look for shortterm investment channels. The advantage of the policy is
that they need not part with a sizable amount of money at
any one time, but create, through regular premium
payments, a periodic return of lump sums which become
available for reinvestment at higher returns, while providing
simultaneously, substantial life cover.
Alternatively, it can be used to meet any immediate financial
crisis in the family like your son's college admission, your
daughter's engagement, renovation of your home or perhaps,
a holiday abroad.
The money is payable in installments. The first installment
is paid at the end of the 4th year and thereafter at the end of
every 3rd year.

32

The special benefit under this policy is that it ensures liquidity
through a periodical return of a specified amount of money, once
in every 3 years. It averts the necessity to look elsewhere for loan
facilities.
A unique feature of this policy is that the risk cover continues for
the full sum assured even though the periodical payments are
being made. This policy also participates in the profits and is
eligible for bonus.
Any healthy male or female, who has completed the age of 15 and
is not older than 63 can avail of this policy.
The minimum amount for which a Reliance Cash Flow Plan
policy can be taken is Rs.25,000. There is also a limitation on the
minimum premium paying term which is 7 years, while the
maximum term is 34 years. An important point to note is that
since periodical payments are available, it will not be necessary
for you to raise a loan. Hence, there is no provision for granting a
loan under this policy.
You receive the first payment at the end of the 4th year and
subsequent payments at intervals of 3 years. The entire vested
bonus is paid along with the last installment on the date of
maturity of the policy.
The full sum assured under the policy along with accrued
bonuses up to the date of death, will be paid immediately. The
installment amounts already paid will not be deducted from the
claim amount.
Subject to certain conditions, if death of the policy holder is
caused by an accident, an additional lump sum is payable. This
benefit provides a lump sum payment in the event of a specified

33

serious illness like a stroke or heart attack suffered by the Life
Assured.
Provided premiums have been paid for three continuous years,
the sum assured will be reduced in proportion to the premiums
paid to the total amount of premiums payable less any survival
benefits paid. Vested bonuses will not reduce but the policy will
cease to participate in future profits. The reduced sum assured
along with vested bonuses is payable on maturity date or on
earlier death. If you have opted for additional benefits, these will
be available only so long as premiums are paid regularly. In any
case, Accident and Critical Illness benefits are not available
beyond the age of 64 years.
This aspect of the liquidity is taken care of by the very
characteristic of the policy, namely the repayment of money to
you periodically. This benefit comes to you without taking
away your valuable life cover.
Yes, there is the usual exemption from tax, under Section 80C for
premiums paid, as per the IT Act, 1961. The money you have
invested earns interest and comes to you in the form of terminal
benefits and Bonus, without the insecurities attached to the ups
and downs of the money market. All your policy benefits, which
you receive, are exempt from tax under section 10(10D) of the IT
Act, 1961.
4.► Reliance Child Plan (Yuva Shree).
This insurance policy is designed for people who wish to save
money for a future time when there will be a recurring need
for substantial amounts of money. This is especially true
when it comes to paying large sums of money for higher

34

education as and when your son or daughter is studying to
become an Engineer, a Doctor or specialize in some other
field, or is perhaps planning to go abroad. This money is
payable in equal installments over the last 4 years of the
policy term.
A unique feature of this policy is that the risk cover continues for
the full sum assured even though the periodical payments are
being made. This policy also participates in the profits for the full
term of the policy.
Any healthy male or female with adequate income, who has
completed the age of 20 and is not older than 60. The minimum
amount for which a Reliance Child Plan policy can be taken is
Rs.25,000. There is also a limitation on the minimum term which
is 5 years, while the maximum term is 20 years.
The sum for which you have taken the Reliance Child Plan policy
will be paid to you in four equal installments during the last four
years of the policy. You will also get full bonuses along with your
final installment.
An amount equal to the sum for which you have taken the policy
will be paid to your family immediately. This will not be affected
by any survival benefits already released. This will also not affect
the four installment amounts and bonus payable and that will be
paid as provided for, in case death claim occurs earlier. For a
marginal additional premium payment, you can opt to have the
Accident benefit and/or the Critical Illness benefit.
Subject to certain conditions, if death of the policy holder is
caused by an accident, an additional lump sum is payable.

35

This benefit provides a lump sum payment in the event of a
specified serious illness like a stroke or heart attack suffered by
the Life Assured.
Provided premiums have been paid for three continuous years,
the sum assured as stated above will be reduced in proportion to
the premiums paid to the total amount of premiums payable less
any installment benefits paid. The benefits pattern remain the
same. Vested bonuses will not reduce but the policy will cease to
participate in future profits. If you have opted for additional
benefits, these will be available only so long as premiums are
paid regularly. In any case, Accident and Critical Illness benefits
are not available beyond the age of 64 years.
Loans can be taken against the surrender value of the policy,
after three years' premiums have been paid. This benefit comes to
you without taking away your valuable life cover.
There is the usual exemption from tax, for premiums paid, as per
the IT Act. The money you have invested earns interest and
comes to you in the form of terminal benefits and Bonus, without
the insecurities attached to the ups and downs of the money
market. Further, at Reliance Life Insurance, we offer you the best
of courtesy, prompt service and a high level of financial security.

5.► Reliance Term Plan (Raksha Shree).
This insurance policy is designed for those who only want
life cover for the protection of their family, and do not wish
to save for themselves. It can also be useful to business firms
that wish to provide financial security to their business

36

against the sudden loss of partners or valuable manpower.
Since there is no saving element or bonus provision, the
premium is very low. Hence, this is a high risk plan with a
low premium
The special benefit under this policy is that it ensures protection
for you and your family and your business as well at a very low
premium.
If you are a healthy individual with adequate income, and if you
are in the age group of 21 to 60, you are eligible for this policy.
Yes, the minimum amount for which this policy can be taken is
Rs.2,50,000. There is also a limitation on the minimum term,
which is 5 years, while the maximum term is 30 years. There is
no upper limit for the sum assured. Critical Illness Benefit is not
permissible as an additional benefit and, no bonuses are payable
under this policy. It is also not possible to take loans on the
strength of this policy.
As the main objective of this plan is to provide maximum cover
against the risk of death, no benefit is payable during the life
time of the insured.
An amount equal to the sum for which you have taken the policy
will be paid to your nominee immediately.
Yes, for a marginal additional premium payment, you can opt to
avail of Accident benefit equivalent to the basic cover. However,
the maximum cover is restricted to Rs.50 Lakhs.
Subject to certain conditions, if death of the policy holder is
caused by an accident, an additional sum is payable equal to the
accident cover opted for.

37

The policy will lapse immediately and all benefits will cease, since
no grace period is available beyond 30 days. However, the policy
can be reinstated any time during the term of the contract
subject to certain conditions. The accident benefit will be
available only so long as premiums are paid regularly. In any
case, the Accident benefit is not available beyond the age of 64
years.
As the amount to be insured is substantial you can pledge your
policy as a collateral security for housing/commercial loans.
The premiums paid are eligible for income tax relief under
Section 80C of I.T Act,1961. Also, all amounts received at the
time of claim are also exempted from tax under section 10(10D).
Further, at Reliance Life Insurance, we offer you the best of
courtesy, prompt service and a high level of financial security.

6.► Reliance Whole Life Plan (Nitya Shree).

Even though you have paid your premiums only over a limited
premium paying term, the life cover continues up to age 85. You
have the option of extending the cover even after age 85.
On attaining your 85th birthday you can choose to terminate the
policy. In that case, you will be paid the sum assured as well as
the accrued bonuses. If you do not wish to avail of this maturity
option at age 85, then the risk cover continues till your 99th
birthday, or is terminated earlier in case of death.

38

An amount equal to the sum for which you have taken the policy
along with the accrued bonus till date of death will be paid to
your family immediately.
Yes, for a marginal additional premium payment, you can opt to
have the Accident benefit and/or the Critical Illness benefit.
Subject to certain conditions, if death of the policy holder is
caused by an accident, an additional lump sum is payable.
This benefit provides a lump sum payment in the event of a
specified serious illness like a stroke or heart attack suffered by
the Life Assured.
Provided premiums have been paid for three continuous years,
the sum assured as stated above will be reduced in proportion to
the premiums paid to the total amount of premiums payable.
Vested bonuses will not reduce but the policy will cease to
participate in future profits. The reduced sum assured along with
vested bonuses is payable on policy anniversary immediately
after age 85 or earlier death. If you have opted for additional
benefits, these will be available only so long as premiums are
paid regularly. In any case, Accident and Critical Illness benefits
are not available beyond the age of 64 years.
Loans can be taken against the surrender value of the policy,
after three years' premiums have been paid. This benefit comes to
you without taking away your valuable life cover.
There is the usual exemption from tax, for premiums paid, as per
the IT Act. The money you have invested earns interest and
comes to you in the form of terminal benefits and Bonus, without
the insecurities attached to the ups and downs of the money

39

market. Further, at Reliance Life Insurance, we offer you the best
of courtesy, prompt service and a high level of financial security.

2. Unit Link Plan
1.► Reliance Market Return Plan (Kanaka Shree).
The course of your life can change with time. But then, it is still
your life. What you need is a sound financial plan to take care of
your investment needs and a sound insurance plan to cover life
risks. How about tossing a coin that gives heads on both sides!
You could look for a single plan that takes care of your
investment and insurance needs.
Good returns from a sound investment and the security of life
cover with one basic investment plan, is the most cost effective
and profitable financial solution. A unit-linked insurance plan
helps you invest your money in various investment funds and
enjoy investment benefits and insurance benefits at the same
time.
Your money is precious to you. The worth of money depends on
how you make it grow, how you make the most of market
conditions. To get the best returns you can invest in bank
deposits, bonds, shares and other investment instruments. While
fixed income investment instruments provide you with security,
this income is still susceptible to fluctuations in inflation. To
maximise your returns, in the long term perspective, you cannot
ignore the high returns and buffer from inflation that the equity
market offers. One has to balance the security offered by fixed
income securities and the high returns offered by the equity

40

markets. A sound investment plan has to provide you with
options to protect you from market risks and the effects of
inflation. Do you have the expertise to do so? Our experienced
fund managers, provide you with this expertise and the logistics
to guide you through the changing world of the money markets
and help you reap better returns in the future. With added
insurance cover, you have a coin that tosses-up head both waysthat is Reliance Market Return Fund.
Reliance Market Return Fund is the unit-linked product that
helps you invest in the financial markets in a combination of
investment instruments of your choice. You can enjoy the returns
from the markets without the trouble of monitoring and
managing your own investment portfolio and keeping track of the
market movements. At the same time your investment premiums
provide you with insurance cover. Reliance Market Return Fund
unit-linked insurance plan provides you with a basket of fund
options that balances your return and risk exposure while
providing life cover at the same time.
Capital Secure Fund – This fund offers steady returns for very
little risk. Your funds are invested 100% in bank deposits,
government bonds and debt instruments that offer financial
security.
Balanced Fund – In this fund, a major portion of your funds are
invested in fixed securities while a small percentage is invested in
the equity market which is exposed to market movements.
Growth Fund - This fund offers a greater portion of investment
in the equity market. The greater exposure to the equity market
means that returns will be higher, but with the attendant higher
level of risk.

41

Equity Fund – This fund offers a totally equity based investment
option. Your returns depend entirely upon the performance of the
equity market. The higher risk of this portfolio means that
expected returns will also be higher.
The premiums you pay are invested into the funds according to
your choice. Your investment is expressed in terms of units, the
value of which varies according to the performance of the funds.
Unit prices are calculated regularly for each fund using the
following formula:
Unit
Price =

Total market value of assets plus current assets
less current liabilities less provisions
Total number of units on issue

Regular Premium You can select a regular payment mode of
your choice to build up your unit account. Such regular
payments continue till the maturity date of the policy.
We will invest your premiums in the investment funds of your
choice in the proportions that you specify subject to regulatory
norms. Under current regulations, you may invest up to a
maximum of 20% of your premiums into the Capital Secure Fund
at the commencement of your policy.
Single Premium You can start your unit account with a single
premium payment of Rs 25,000 or more. We will invest your
premiums in the investment funds of your choice in the
proportions that you specify subject to regulatory norms. Under
current regulations , you may invest up to a maximum of 20% of
your premium into the Capital Secure Fund at the
commencement of your policy.

42

Top Premium. When you have additional funds, you can
enhance your unit account with top-up premiums of Rs 2,500 or
more. You may make top-ups on your regular or single premium
policy at any time to further build your portfolio. These top-ups
do not affect your sum insured; they simply increase your
investment in the funds.
Switches
One
switch
per
policy
year
absolutely
free
You can switch between investment funds anytime you wish. This
provides you with the freedom to change your investment plan
and maximise your returns depending on the performance of the
funds in the market. For instance, if you feel the prospects for the
share market are good and you would like greater exposure to the
market situation, you may switch to a fund that offers greater
participation in the equity market.
Redirection are free of cost. At any point you can redirect your
premiums to other investment funds. Once your requisition
reaches us, your future premium payments will be redirected to
the investment fund/s of your choice.
Withdrawals
The withdrawal option provides you with the right amount of
liquidity such that you can draw from your unit account without
disturbing the insurance cover you enjoy. Once the policy is in
force for at least a year, you can make partial withdrawals from
your unit account.
Beyond 3 years of your policy term, you can make partial
withdrawals up to to a maximum of Rs 5,000, even if your unit
account balance is less than the sum insured. If the unit account

43

balance is more than the sum insured, you can withdraw the
difference between the account balance and the sum insured
plus the Rs.5,000.
Higher withdrawals may be considered subject to underwriting
and evidence of good health. After each withdrawal unit account
balance should be at least Rs.10,000. You can make 2 such
partial withdrawals per policy year.
After 1 year of the policy being in force you can make 2 partial
withdrawals per policy year. If your unit account balance is less
than the sum insured you can withdraw a maximum of Rs 5,000,
leaving a minimum balance of Rs.10,000.
We will cancel units to the value of each withdrawal from the
unit-linked funds according to the proportions that you specify
from any of the investment funds you have opted for. Units
equivalent to your withdrawal amount will be deducted from your
account. The withdrawal amount will be paid to you after
deducting applicable charges.
Variable Return Your unit account can attract greater returns
depending on your choice of investment funds and their
performance in the market. Under current tax legislation, the
earnings on your investments accumulate free of tax.
If your unit account value is less than the unit value of the sum
total of all charges due from you (insurance charges + investment
charges + monthly administration charges) then the policy can
lapse and you will not enjoy the benefits.
The Reliance Market Return Fund unit-linked policy provides
death benefits with flexible options. Your premiums are invested

44

in investment funds of your choice while at the same time you
enjoy the privilege of insurance cover.
If the life insured dies before the maturity date, the policy
holder/beneficiary will receive the full value of the unit account
or the sum insured whichever is higher.

Suicides Clause. If the life insured, whether sane or insane,
commits suicide within 12 months from the date of
commencement of this policy we will limit the death benefit to
the value of your unit account. Insured benefits are not paid in
this case.
This benefit doubles the life coverage in case of death or
permanent total disability due to an accident at a very nominal
additional cost. The maximum cover offered is Rs 50,00,000
In case of total and permanent disability, 1/10th of the sum
insured will be paid at the end of each year for ten years. If the
total and permanent disability benefit has commenced, then the
accident cover will cease.
In case of maturity or on death of the life assured, after the
payment of any installments of the permanent and total disability
benefit, the remaining unpaid installments, if any, will be paid in
one lump sum.
Total and permanent disability means disability caused by bodily
injury which causes permanent inability to perform any
occupation or to engage in any activities for remuneration or
profits. This disability should last for at least 6 months before
being eligible for total and permanent disability benefits.

45

Revision of Charges
We may increase the investment management charges at any
time but they will not exceed 2% pa for the Capital Secure Fund
and 2.5% pa for the other funds. Any changes made to the
charges or fees under this policy will be subject to IRDA approval.
15
day
free
look
period
You are entitled to a free look period of 15 days. If at the end
of this time you do not wish to continue this policy then you
may write a letter requesting us to cancel the policy. We will
refund the premium paid by you after deducting a
proportionate premium for the cover we provided you during
that time. We will also deduct any expenses, medical
examination costs and stamp duty charges incurred by us in
respect of your policy.

CHAPTER : 4

HUMAN RESOURCES DEPARTMENT
Reporting to the Human Resources Director, the Human
Resources Generalist will provide staffing, employee
relations, performance management, compensation and

46

related support to RLI's sales and marketing group totaling
approximately 350-400 employees within 27 geographic
locations throughout the USA. On a routine basis, works
closely with Regional AVP's, Regional Sales Managers and
Office Administrators to coordinate and implement these
functions consistent with Company policies, guidelines,
goals and objectives.
In the area of Human Resources the company is looking towards
fulfilling our core values through:
1

An open environment enabling free interaction between all
levels.

2

A balanced scorecard approach to strategy deployment and
performance measurement which set goals and measure
financial, customer focused, process related and employee
development related initiatives.

3

Aggressive Reward & Recognition plans including sales
incentives.

4

Career Development plans that will identify potential and
create avenues for growth.

5

Intensive training practices for both functional as well as
competency development.

6

Knowledge sharing and certification practices.

7

Planned team building and fun events.

8

Creating Reliance Life Insurance family including employees,
associates and their families.

 RECRUITMENT :

47

Recruitment procedure is done on the following basis.
1. The Sales Manager of the company has right to recruit the
advisor.
2. Every Sales Manager has a team of advisor.
3. Advisor is recruited on the basis of good communication,
educated & good knowledge about insurance industry.
4. For becoming an advisor there are procedure. The advisor
has to fill up a form & has to pay Rs.500/- as a examination
fees.
5. After filling the form advisor has to attempt examination
and has to pass that examination.
6. After passing the exam the company give the code & license
of advisor.
7. This license is valid up to three years from the issue of the
license. After three years the advisor has to give
examination for continuation of the license.
8. The Advisor has given a Product Training by the company
for the knowledge of the different product of the company.
Advisor can continue the business if he has license.



SELECTION PROCEDURE :
Selection Procedure is done for the Sales Managers of the
company. Reliance Life Insurance Company Limited has done
selection procedure as under:

48

1. The Sales Manager should be MBA.
2. The minimum age of the Sales Manager should be 25 and
maximum should be 35 at the time of getting job.
3. To become the Sales Manager, he should have the
experience of minimum 3 years.
4. He should have the good communication power.
5. the job profile of the Sales Manager includes training,
guiding, motivation & inter getting the business and the
team of the Sales Manager.
6. First of all the company arrange the personal interview of
the Sales Manager.
7. The second stage of the selection procedure is project 4
interview.
8. The third stage of the selection procedure is Regional head
interview.
9. After completion of Regional head interview the selection of
the person is done and negotiation is done.



TRAINING & DEVELOPMENT
For Sales Manager1. The Sales Manager has given a training for doing good job
and for knowing rules & regulation of the Reliance Life
Insurance Company Limited.

49

2. For the development of Sales Manager the company provide
different types of programs for the motivate the Sales
Manager.

For Advisors1. After getting the code & license by the company the
company provides 100 hrs. training for the knowledge of
Insurance industry.
2. Company provides another product training for the
knowledge of the product (policy) for doing the business.
3. The development of the advisor has done by the Sales
Manager like give guidance etc.
4. For the development & motivate the advisor the company
gives different types of commission incentives & gifts also.



CAREER PLANNING :
1. The Sales Managers has to plan their career for job. The
Sales Managers has to plan how they work for the company.
2. The Sales Manager has to plan for the whole month that the
targets given by the company.
3. For the betterment of the career the Sales Manager try to
achieve their targets.
Opportunity has a new name – “Reliance Life Insurance Company
Limited”. If you have been waiting for that one job which will

50

enrich your professional and personal life then you are at the
right place. At Reliance Life Insurance Company Limited our
mission is to be the best in every sphere - business results,
customer care and employee focus. Some of our core values are:



1

Result Oriented

2

Performance Driven

3

Customer Focused

4

Learning & Development Oriented

5

Employee centric

6

Informal & fun

PERFORMANCE APPRAISAL :
1. Performance Appraisal means to check the performance of
the all employees working in the company.
2. The Sales Manager’s performance is appraised every 3
months & every 6 months & yearly also. So, that the
company can know what is the situation of the company in
the market.
3. The performance is appraised on the basis of the business
done by the Sales Manager performance appraisal is
necessary for the company.



ORGANISATION CHART

51

In Reliance Life Insurance there are several employees working in
the organization. Reliance Life Insurance is very big organization.
It includes many state of the country. There are many branches
and sub stations of the company. The organization work is
handled by the C.E.O. (Chief Executive Officer) than in under of
C.E.O., C.M.O. (Chief Marketing Officer) in under C.M.O.,
Channel Head is working.

The C.E.O. , C.M.O. & Channel Head is included in top level
management. Than comes the middle level management. In
middle level management Regional Manager & branch manager is
included. The last is bottom level management. In it the Sales
Managers & the Advisors are included.

The graphical presentation of organizational chart
below:

C.E.O.

C.M.O

52

is given

CHANNEL HEAD

REGIONAL MANAGER

BRANCH MANAGER

MAIN BRANCH
Sales
Manager

Sales
Manager

Sales
Manager

Sales
Manager

Sales
Manager

SUB BRANCH
Advisors



Advisors

COMMUNICATION :

Advisors

Advisors

Advisors

REGIONAL
BRANCH

The communication is very necessary for the company. The
communication style of Reliance Life Insurance is up word and
the communication is done from bottom level to top level
REGIONAL
management.
BRANCH
The graphical presentation of communication chart is given
below :
CHANNEL
HEAD

C.M.O
53

C.E.O

SUB BRANCH

REGIONAL
BRANCH



EMPLOYEE BENEFIT & INCENTIVES :

54

The Reliance Life Insurance Company has give good benefit in
terms of salary, different types of intensive, allowances,
perquisite, gifts etc. to the employees.
1. The Sales Manager has given good salary and extra
allowances like petrol allowance, commissions and
different types of intensives.
2. The Reliance Life Insurance has introduced a scheme
“Subharambh’ in this scheme the employee can win the
different type of prizes at the different level of target
achieved.
3. The Advisor has given the commission on the basis of
doing their business.
4. The Advisors can also win the prizes in “Subharambh” if
they achieve the given target.
5. The Special scheme for the Advisors in Reliance Life
Insurance is “RARE” (Reliance Advisor’s Rewards
Experience) in this scheme the Advisors can get the reward
on the basis of that experience.

CHAPTER : 5
MARKETING DEPARTMENT

55

Reliance Life Insurance has a good marketing department. There
are several segments like Distribution channel, Sales promotion
and Advertisement in marketing department. Due to marketing
department the Sales of the company is increased.
DISTRIBUTION CHANNEL :



INSURANCE

Agency

Bank

Corporate

Rural Benefit

Web world

Agency- The first distribution channel is agency. In agency the
selling of the product is done through Sales Managers and
Advisors. The Advisors is done the business through references.
Bank- Sometimes the Assurance is tie-up with the bank. The
insurance of the party is done through bank.
Corporate- The insurance of the small dealer and enterprises is
done through corporate. In this type of channel the risk cover of
whole employees of the enterprise is covered.
Rural Benefit- Most of the insurance company is not working in
the rural areas. But Reliance Life Insurance is working in rural
area also. The distribution channel is very effective in Reliance
Life Insurance. Due to rural area the company can cover good
business in very short time.
Web World- In this type of distribution channel the internet is
working very effectively. The Web world is directly tie-up with

56

customers. Due to Web world the more customers can be
collected and business is increased.
Due to distribution channels the more business is done by Sales
Managers and their Advisors in very short time.



SALES PROMOTIONS SCHEME :
The Reliance Life Insurance Company Limited has introduced
various Sales Promotions Scheme. To motivate the employees for
better business Sales Promotion Scheme is very necessary.
Currently the Reliance Life Insurance has introduced three Sales
Promotion Scheme for employees of the company.
1. Shubharambh
2. R.A.R.E (Reliance Advisor’s Rewards Experience)
3. Elate Club
1. Shubharambh
Currently The Reliance Life Insurance has introduced a scheme
named “Shubharambh” in this scheme the Advisors can get
different types of prizes if they achieve the target.

The table given below is present the different gifts if the Advisors
collect the premium.

57

ACHIEVERS
SLAB (WRP)

REWARD

30000

Reliance Life T-Shirt

50000

Table Top Clock

75000

Leather Bag

100000

World Space Radio

150000

L.G. Microwave – 19L

200000

DVD/VCD/MP3 Player

300000

Sony Music System
SUPER ACHIEVERS

SLAB (WRP)

REWARD

500000

L.G. Refrigerators GL -233

750000

L.G. Air Conditioner 1T

1000000

Sony Digital Camcorder

1500000

Trip to Dubai 3D/4N

2000000

Hero Honda Splendor

58

STAR ACHIEVERS
SLAB (WRP)

REWARD

5000000

Maruti Alto Std.

7500000

Maruti Swift Lxi.

10000000

GM Aveo 1.4LS

2. R.A.R.E.(Reliance Advisor’s Rewards Experience)
The R.A.R.E. program consists of
 New Advisor Incentive Program
 Board of Advisor
 Annual Discovery Series
 Advisor Career Progression
 R.A.R.E. club – loyalty program

 New Advisor Incentive ProgramIt provide the new Advisors the right and confident start to their
business. Bring out a sense of achievement and confidence to the
new Advisors. Ensure that the Advisors see “money in the
business” and spend more time towards this business.
Benefit- If the Advisors is collect three policies issued within the
first 30days of licensing than they can earns points worth
Rs.1000/-. A Certificate of Appreciation. If the Advisor is collect

59

five policies issued within first 60days of licensing than they can
get advisor earns points worth Rs.2000/- and a certificate of
appreciation and trophy.
 Board Of AdvisorsA recognition based program, where the top advisors get to
represent their fraternity and provide suggestion to the company.
Provide a platform to the advisors to meet the Management at
various levels & contribute. An great opportunity for the
Management to interact with the “Actual Sales Force”. They get to
meet the CEO along with some of the top Management staff.
There will be three levels of qualification to the Board of Advisors:
(A) Regional Board of Advisors (B) National Board of Advisors (C)
Executive Board of Advisors.
During each of the Board Meeting, the best suggestion will be
recognized and the advisor will be a given a Certificate of
Appreciation. Advisors will get points credited into their account
on qualifying for each of the slabs.

 Annual Discovery SeriesThe Discovery Series will be an annual event, which will provide
an opportunity to
 Discover ways for Self Development
 Discover new places across the Globe and India
 Discover new areas of interest

60

 Discover about your Company
There will be two Discovery Series held every year
 One in a foreign location – Global Discovery Series
 The other being in India – National Discovery Series

 Program Advisor Career Progression
Provide the Advisors the right environment to grow & generate
more business. Provide them an opportunity to leverage their
performance into building a business. Provide them the
opportunity to be an employee of Reliance Life Insurance.
Advisor Career Progression
A. Business Associate
B. Sales Manager
 R.A.R.E. Club – loyalty program
In Pursuit of the Extraordinary Performers, Reliance Life
presents a Unique Loyalty Program –RARE Privilege Club, built
with exclusive benefits &
special recognition programs for
Advisors at Reliance Life. Truly, a Rewarding Experience!
Recognize
the performing advisors and provide them with
differential benefits. Provide them with long term benefits
through a Loyalty Program.
3. ELATE CLUB

61

Elate Club is also promotional scheme. If an Advisor collect Rs.2
lacks as a premium then they are qualify in Elite Club. In Elate
Club the company offers lunch & dinner in good Hotels or
Restaurant every month. The company also gives different types
of gifts on special occasion.

COMPERATIVE ANALYSIS



1. Comparative Analysis of premium Underwritten
First Year Premium Underwritten By Life Insurers For The FY
2005-06

No Insurer

Premium
%

1

LIC

71.44

2

Bajaj Allianz

7.56

3

ICICI Prudential 7.35

4

HDFC
Life

5

SBI Life

2.31

6

Birla SunLife

1.89

7

Tata AIG

1.29

Standard

2.87

62

8

Max New York

1.23

9

Aviva

1.14

10

Kotak Mahindra
1.11
OLD Mutual

11 ING Vysya

0.79

12 Reliance Life

0.54

13 MetLife

0.40

14 Sahara Life

0.06

15 Shriram Life

0.03

63

2. COMPARATIVE ANALYSIS OF CAPITAL FUND (Investment)

Capital Fund

Rs. (In Crore)

ICICI Prudential

375

Max New York

250

HDFC Standard Life

218

Bajaj Alliance

200

Tata AIG

183

Birla Sun life

180

Aviva

155

OM Kotak

153

Reliance Life

126

SBI Life

125

Met Life

110

ING Vysya

110

64

3. COMPRATIVE ANALYSIS
DIFFERENT COMPANIES

OF

MARKET

No. Name of the Company

Marketshare

1
2
3
4
5
6
7
8
9
10
11
12
13

(%)
82.30
5.63
2.56
2.03
1.80
1.36
1.29
0.90
0,79
0.51
0.37
0.26
0.21

LIC
ICICI Prudential Life
Birla Sunlife
Bajaj Allianz
SBI Life
HDFC Standard
Tata AIG
Max New York
Aviva
Kotak Mahindra
ING Vysya
Reliance Life
Met Life Insurance

65

SHARES

OF

Here we can see from the diagram that LIC is the market leader
and it commands the major part of the total life insurance
market. Its market share was approximately 98% before 2000 but
after the entry of private players it has significantly decreased.
Among private players ICICI Prudential stands first. It has the
market share of approximately 5.7% in the total market and it
constitutes 40% of the market share among private players.

66

Birla Sun life Insurance Company comes third. Bajaj Allianz is
also one of the fastest growing life insurance companies in India.
Rest of the players have market share below 2%.

4. STRATEGIC PARTNERS
Company

Foreign

Indian Share

Shareholder
Allianz
Sun Life of Canada

holder
Bajaj Auto
Reliance Capital
Birla Global

CGNU
Standard Life

Finance
Dabur
HDFC

Prudential (UK)
ING
New York Life
MetLife

ICICI
Vysya Bank
Max India
Jammu & Kashmir

OM KOTAK

Old Mutual

Bank
Kotak Mahindra

Mahindra
SBI Life
Tata AIG

Cardiff
AIG

SBI
Tata

Allianz Bajaj Life
Reliance Life
Birla Sunlife
Dabur CGU
HDFC Standard
Life
ICICI Prudential
ING Vysya
Max New York Life
MetLife India

67

CHAPTER : 6

FINANCE DEPARTMENT
1. Money Manager:
In the broadest sense, anyone who earns an income and pays
bills does financial planning. Financial planning is the process
of meeting your life goals. Life goals can include buying a
house, saving for your child’s higher education or planning for
retirement. Financial planning is the process of meeting your
life goals through the proper management of your finances.
2. Power of Compounding
Beside inflation, you also have to keep in mind the effect of
compounding. On one hand, while inflation is working at
eroding your income, it is the power of compounding that
works in the opposite direction and looks to maximize the
returns on your investment. Like stated earlier, when you
reinvest an amount of money, there is a snowball effect that is
created, which can benefit you in the long-run. For instance, if
you invest Rs.1000 at say, 8 percent annual interest, you will
receive Rs.1080 which if you reinvest, along with the returns,
after 5 years you will receive around Rs.1469.33 as shown in
the table below :

68

Year

Amount
Invested

Returns
at 8% pa

Total

1

1000.00

80.00

1080.00

2

1080.00

86.40

1166.40

3

1166.40

93.31

1259.71

4

1259.71

100.78

1360.49

5

1360.49

108.84

1469.33

This means after 5 years, you have received a whopping 47
percent cumulative return on your investment. This is the
power of compounding.
3. Taxation
Lastly, while investing one has to consider various taxation
issues that are involved. Different type of instruments offers tax
saving under different schemes. For instance, the section 80L is
very important for individual investors. Section 80L provides for a
maximum deduction of Rs15000 from the interest income arising
out of investments in certain Post Office schemes, PSU’s,
Financial Institutions, Housing finance companies, Government
Securities, Banks and dividend income from Shares.
4. Fund Performance
Capital Secure Fund : In line with the objective of protecting the
capital against any erosion, 61.4% of the funds were invested in
short-term Government Securities (Gilts) and to meet liquidity
requirement higher about 40% of funds are kept in short term

69

bank deposits. The net return credited to policy holders and the
asset composition ratios are given in the boxes below.
Net Returns during last 1 months (Mar.’06)

0.36%

Net Returns during the last 3 months (Jan.-Mar.’06)

1.10%

Net Returns during the last 12 months (Apr.-Mar.’06)

4.09%

Net Returns Since Inception in Feb.’03 (Annualized)

3.89%

Asset Allocation
Capital Secure Fund

39%

61%

Gilts

Bank Deposite

Balanced Fund: To take advantage of the bullish trend in the
equity market, the equity holdings in the fund was maintained as
close as possible to the maximum of 20% allowed for the fund.
Bank deposits were maintained only for the fund. Bank deposits
were maintained only for the purpose of liquidity management.

70

To reflect our bearish view on the debt market the duration of the
fixed income portfolio, allocation to Gilts was higher than
corporate bonds. All the bonds in the portfolio are top rated. The
asset composition, the details of the portfolio and the net returns
are disclosed below :
Net Returns during last 1 month (Mar.’06)

2.47%

Net Returns during the last 3 months (Jan.-Mar.’06)

4.07%

Net Returns during the last 12 months (Apr.-Mar.’06)

13.83%

Net Returns Since Inception in Feb.’03 (Annualized)

13.10%

Asset Allocation
Balanced Fund

5%

20%
Equity
Corporate
Gilts
22%

53%

71

Bank Deposite

Growth Fund: To take advantage of the bullish trend in the
equity market, the equity holdings in the fund was maintained as
close as possible to the maximum of 40% allowed for the fund. To
reflect our bearish view on the debt market the duration of the
fixed income portfolio was kept low.

Asset Allocation
Growth Fund

6%
40%
45%
9%
Equity

Corporate

Gilts

Bank Deposite

Equity Fund : In line with the stated asset allocation pattern
and our view of the market , the entire corpus of the fund
was invested in equities.
Asset Allocation
Equity Fund

72

1.07%

98.93%
Equity

MF/BD

CHAPTER : 7

73

RESEARCH METHODOLOGY
 Data Source :
The data would be collected from both primary as well as
secondary data. Customers would be asked to fill questionnaires
to arrive at the information. Various secondary sources of data
as magazines, journal internet etc., would also be explored.
 Sampling Area:
I am choosing different areas of Ahmedabad city for the
research to be carried out.
 Sampling Method :
I am choosing the sample
on the convenience Sampling
basis. We are choosing respondents who have taken a life
insurance.
 Sample Size :
I am choosing 50 respondents from different areas of
Ahmedabad city.
 Research Instrument :
I am choosing questionnaire as a research instrument as
this can help me knowing the perception of the people about the
life insurance at the least possible cost.

74

 Method of Contact :
The method of contact would be personal and direct as this
would help to qualify the customer issues while filling up the
questionnaires and also help them if they do not have the
knowledge about any insurance plan of the company.

Method of Making an approach for Sales :
Based on the content of the questionnaire we would analyze
and identify the needs of a customer. We would later make a
phone call to him in order to take an appointment with him so
that we could show and explain him an insurance which may
fulfill most of his needs.

OBJECTIVES
 To know the perception of the consumer about life insurance.
 To improve our ability to sell a financial product like life
insurance.
 To get some good market exposure by dealing with the
prospects face to face.
 To get a deep knowledge of the financial product like
insurance.

75

 To get some information about the market share of Reliance
Life Insurance and to know the standing of the company in the
market.

DATA COLLECTION AND ANALYSIS
 Questionnaire :
Q.1 Do you have Life Insurance Policy ?
Yes

45

No

05

50
40

Life Insurance
Holder

30

Yes

20
No

10
0

1

Analysis : We have selected 50 respondents in which 5
respondent does not have life insurance policy.
Q.2 If “Yes” which company’s insurance policy do you have?

76

Company’s Name

No. of Policies

LIC

25

Reliance Life Insurance

08

HDFC

01

ICICI Prudential

05

Tata AIG

01

New York Max Life

01

OM kotak

01

Met Life insurance

01

Birla sun life

03

Alliance Bajaj

01

Aviva Life insurance

03

77

LIC
Reliance Life Insurance
HDFC
ICICI Prudential
Tata AIG
New York Max Life
OM kotak
Met Life insurance
Birla sun life
Alliance Bajaj
Aviva Life insurance

30
25
20
15
10
5
0
No. of Policies

Analysis : From the above chart we can easily say that according
to my research the LIC of India is the current market leader. The
second largest share goes to Reliance Life Insurance being a
private company. The Reliance Life Insurance Company has able
to snatch some market share of LIC of India. Though LIC of India
is the oldest & the biggest Insurance Company in India, but in
term of pace of growth and development Reliance Life Insurance
is much ahead.
Q.3 What priorities would you consider most important, while
purchasing?
Ranks

I

II

III

IV

V

Death
Benefit

6

14

9

6

15

Children’s
Education

9

8

10

13

10

Retirement
Benefit

15

10

11

7

7

78

Tax
Planning

15

7

14

10

4

Financial
Planning

5

11

6

14

14

Death Benefit

20

Children’s
Education
Retirement
Benefit
Tax Planning

15
10
5
0
I

II

III

IV

V

Financial
Planning

Analysis : In the above diagram we can make out that the factor
getting rank 1 the maximum number of times is Retirement
benefit and Tax Planning. The factor getting rank 2 the maximum
number of times is come anytime. For rank 3 tax planning has
again been given importance but here we would consider
children’s education as rank 3 as one factor death benefit. This
shows that people don’t take life lightly as it seems that they have
realized that nothing in life is certain except death that cannot
achieve to ranks at the same time. The factor being given rank
for by most number of respondents is financial planning.
Q.4 Do you have any knowledge about Unit Linked Insurance
plans?

79

Yes

18

No

32

36%
Yes
No
64%

Analysis : The above figure is shown that about 64% of the
respondents don’t know anything about ULIP (Unit Linked
Insurance Plan) whereas about 36% of the respondents do have
knowledge about the ULIP. This shows that people are not aware
of new type of insurance plans.
Q.5
Is your current insurance policy’s “Unit Linked” or
“Traditional”?
Unit Linked

11

Traditional

31

80

26%
Unit Linked
Traditional
74%

Analysis: The above figure is a sequel to the previous question.
Here about 74% of the respondents have insurance which is
Traditional in nature whereas the rest 26% are those who have
Unit Linked Insurance Plans with them. It seems that people are
not aware of the new insurance plans or shall we say that they
are scared of breaking the tradition.
Q.6 Are you or any of your family members planning to buy an
insurance plan in near future?
Yes

11

No

39

11
Yes
No
39

81

Analysis : Here from the data its self we can see that about 39
respondents have no plans of purchasing an insurance plan in
the near future. But still they are the prospect for us. We would
definitely approach them after analyzing their needs from the
questionnaire.
Q.7 Are your needs satisfied with your current investment in
insurance?
Yes

35

No

15

15
Yes
No
35

Analysis : This table shows us that out of 50 respondents 35
respondents feel that their needs are satisfied with their current
investment in insurance whereas the remaining 15 respondents
are not satisfied with their current investment in insurance.
Q. 8 If “No”. then give reasons.
Factors

No. of Respondents

High Premium

7

82

Low Return

5

Poor Service

3

8
6

High Premium

4

Low Return
Poor Service

2
0

No.of Respondents

Analysis : From the above diagram we can make out that the
reason of 7 respondents being dissatisfied from their current
investment in insurance is high premium. Due to high premium
it had become difficult for them to continue their policy. As a
result of this some of them even had to surrender their policy
and the policy of some respondents had lapsed. The other 5
respondents were dissatisfied with their current investment in
insurance because of the low returns from the investment. 3
respondent was dissatisfied with his current investment in
insurance because of poor service from the company.
Q.9 Do you know anything about Reliance Life Insurance?
Yes

35

No

15

83

15
Yes
No
35

Analysis : About 35 respondents knew much than we expected
about Reliance Life Insurance, whereas 15 respondents knew
nothing about Reliance Life Insurance. But overall it shows that
in such a short time Reliance Life Insurance has been able to
make a good name for itself through aggressive selling and with
proper marketing channels. If such aggression is continued then
that day is not when Reliance Life Insurance would be the overall
market leader.
Q.10 If “Yes”, from where did you come to know about the
company?
Media

Reply of the Respondents

T.V.

05

News Paper

10

Radio

00

Hoardings

10

Internet

10

84

Magazine

05

Sales Representative

10
T.V.

10
News Paper

8
6

Radio

4
Hoardings

2
0

Reply of the Respondents

Internet
Magazine

Analysis : From the figure above we can say that the most
effective to reach the prospects is through Sales Representatives.
These are the recruits who can be a an MBA students doing their
summer training, graduate student looking for a part time job,
etc. This force is really effective in bringing in the prospect’s
notice not only the company but also its products and their
benefits. The second most effective instrument is newspaper.

85

PERSONAL INFORMATION
Q.1 Age Group :
Age Group

No. of Respondents

18-25

0

25-35

7

35-45

15

45-55

26

55-Above

2

Analysis: From the above data we can see that the highest
number of respondents fall in the age group of 45 to 55 years. 26
respondents fall in this age group.
The 2nd largest number of respondents falls in the age group of 35
to 45 years. The 3rd largest group has 7 respondents. The age
group of this group is 25 to 35 years.

86

The 4th category goes to people belonging to the age group of 55
and above.
Q.2 Gender :
Male

38

Female

12

Analysis : The above data shows that our respondents include
38 male and 12 female. This shows that the female who are also
earning are now taking part in important decisions like
investment and insurance.
Q.3 Occupation :
Service

44

Business

6

Analysis : From the above data we can make out that 44 of our
respondents include service people as they want to have tax
benefit. As far as the business people are concerned they prefer
putting the money in the business rather than investing in
insurance policies.

87

CHAPTER : 8

SUGGETIONS
 There is a requirement of a branch office to be opened
in Gujarat for the convenience of the customer.
 The depth of the company in terms of the area is not
so impressive. The company needs to enter and create
some awareness in rural and semi urban areas where
LIC of India is already having a strong hold.

88

 The company must reduce the minimum limit on the
premium so that the middle class and lower middle
class people can also afford investing in any product of
Reliance Life Insurance.
 The company should avoid displaying the charges and
in the brouchers or reduce the administrative charges.

CHAPTER : 9
CONCLUSION

At last here I have concluded that the Reliance Life Insurance is
growing company in very short period Reliance Life Insurance
has done very good business as the Reliance Life Insurance has a
good brand name.
The all departments of Reliance Life Insurance is very sound the
working style of Reliance Life Insurance is systematic and
effective for growth the career.

89

CHAPTER : 10
BIBLIOGRAPHY

1. www.reliancelifeinsurance.co.in
2. www.bimaonline.com
3. www.indiainfoline.com
4. Life First Magazine by Reliance

90

CHAPTER : 11
ANNEXURE
 Questionnaire :
Q.1 Do you have Life Insurance Policy ?
Yes
No
Q.2 If “Yes” which company’s insurance policy do you have?

Company’s Name
LIC
Reliance Life Insurance
HDFC

91

ICICI Prudential
Tata AIG
New York Max Life
OM kotak
Met Life insurance
Birla sun life
Alliance Bajaj
Aviva Life insurance

Q.3 What priorities would you consider most important, while
purchasing?

Ranks
Death
Benefit
Children’s
Education

92

Retirement
Benefit
Tax
Planning
Financial
Planning

Q.4 Do you have any knowledge about Unit Linked Insurance
plans?
Yes
No
Q.5
Is your current insurance policy’s “Unit Linked” or
“Traditional”?
Unit Linked
Traditional

Q.6 Are you or any of your family members planning to buy an
insurance plan in near future?

93

Yes
No

Q.7 Are your needs satisfied with your current investment in
insurance?
Yes
No

Q. 8 If “No”. then give reasons.
Factors
High Premium
Low Return
Poor Service

Q.9 Do you know anything about Reliance Life Insurance?
Yes

94

No

Q.10 If “Yes”, from where did you come to know about the
company?
Media
T.V.
News Paper
Radio
Hoardings
Internet
Magazine
Sales Representative

PERSONAL INFORMATION
Q.1 Age Group :
Age Group

95

18-25
25-35
35-45
45-55
55-Above

Q.2 Gender :
Male
Female

Q.3 Occupation :
Service
Business

96

==========

97

98

99