1

PROJECT REPORT

AT

RELIANCE LIFE INSURANCE, NEW

DELHI
A Project Report submitted in partial fulfillment of the
requirements for
the award of the degree of

MASTER OF BUSINESS
ADMINISTRATION
(Industry Integrated)

TO

MADURAI KAMARAJ UNIVERSITY,

MADURAI

BY
SWAREEM KHAN
Reg No.--87753904

Under the guidance of

MRS.MEETU VERMA

NEW ERA INSTITUTE OF IT AND

PROFESSIONAL
STUDIES, NEW DELHI
 2

JULY 2008

Certificate
This is to certify that the Project Report at

RELIANCE LIFE INSURANCE, NEW DELHI

Submitted in partial fulfillment of the requirements for the award of

the degree of

MASTER OF BUSINESS ADMINISTRATION

(Industry Integrated)

TO

MADURAI KAMARAJ UNIVERSITY, MADURAI

Is a record of bonafide Training carried out by

SWAREEM KHAN

Under my supervision and guidance and that no part of this report has been
submitted for the award of any other degree/diploma/fellowship or similar
titles or prizes.

FACULTY GUIDE

Signature :

Name : Mrs. Meetu Verma

 3

Qualifications : MBA Signature and

seal of the Learning Centre

STUDENT’S DECLARATION

I hereby declare that the Project Report conducted at

RELIANCE LIFE INSURANCE, NEW DELHI

Under the guidance of

Mrs. Meetu Verma

Submitted in partial fulfillment of the requirements for the Degree of

MASTER OF BUSINESS ADMINISTRATION

(Industry Integrated)
TO

MADURAI KAMARAJ UNIVERSITY, MADURAI.

Is my original work and the same has not been submitted for the award of any
other Degree/Diploma/fellowship or other similar titles or prizes.

Place: New Delhi SWAREEM KHAN

 4

Date: Reg. No.--87753904

ACKNOWLEDGEMENTS

With all sincerity I would like to express my gratitude to all those who gave
me the possibility to complete this report. I am deeply indebted to my project
guide Mrs. Meetu Verma, for her invaluable guidance throughout the duration
of the project, I would also like to thank Mr. Rohit Chopra [Vice Chairman ]
for providing special inputs.

I want to show my indebtedness to the RELIANCE LIFE INSURANCE for

providing me an opportunity to associate with an esteemed organization for On-
the-Job Training. Especially, I would like to give special thanks to my In-charge
Mr IMRAN AHMED KHAN (SALES MANAGER) Reliance Life Insurance whose help,
stimulating suggestions and encouragement helped me all the time of my Training
and Development of the Report. Last but not the least I would also like to thanks my
seniors for providing a helping hand.

SWAREEM KHAN
 5

CONTENTS

CHAPTER 1) INTRODUCTION

1.1) General Introduction

1.2) Objectives of the study.
1.3) Industry Profile.
a) Origin and development of the industry.
b) Growth and present status of the industry.
c) Future of the industry.

CHAPTER 2) PROFILE OF THE ORGANIZATION

2.1) Origin of the organization.

2.2) Growth and development of the organization.
2.3) Present Status of the organization.
2.4) Future plans of the organization.
2.5) Functional Departments of the organization.
2.6) Organization structure and organization chart.
2.7) Product and Service profile of the organization.
2.8) Market profile of the organization.

CHAPTER 3) DISCUSSIONS ON TRAINING

3.1) Student’s work profile (Role and responsibilities).

3.2) Description of live experience.
3.3) Student’s contribution to organization.

CHAPTER 4) SUMMARY AND CONCLUSIONS

 6

5.1) Summary of Learning Experience.

5.2) Conclusions and Recommendations.

CHAPTER 6) APPENDIX

CHAPTER 7) BIBLIOGRAPHY
 7

CHAPTER 1) INTRODUCTION

1.1 GENERAL INTRODUCTION

Insurance, in law and economics risk of a contingent loss. Insurance is

defined as the equitable transfer of the risk of a loss, from one entity to
another, in exchange for a premium., is a form of risk management
primarily used to hedge against the risk.

There are mainly two parties involved in this – the insurer and the
insured. The insurer is the insurance company who will provide the
coverer to the insured against any financial losses. The insured may
be an individual person or a group of people like an employer,
members of a society, etc.

A policy is the contract between the insurer and the insured, which
states the risk covered, the exclusions,if any, and the benefits
reimbursed on the happening of an event likr death, illness,etc. The
policy is paid through what is called a premium, which is a set amount
that must be paid by the insured on a monthly, quartely,half yearly and
annual basis. On the happening of an event like death,
disabillity,fire,etc, for which the insured is covered, the benefit amount
stated in the policy contract can be claimed by the insured.

Insurance is a financial topic of paramount importance for every

individual. Insurance is designed to protect the financial well being of
person and its dependents in the case of unexpected loss. Law
requires some forms of insurance, while others are optional. Agreeing
to the terms of an insurance policy creates a contract between person
and the insurance company. In exchange for payments from person
(called premiums), the insurance company agrees to pay person a
sum of money upon the occurrence of a specific event. That event may
be as mundane as a visit to the doctor or as serious as a car crash,
depending on the type of insurance.

After contacting an insurance company about entering into a policy,

customer will receive a quote, which is the total amount of money
 8

customer will need to pay over the term of the insurance policy in
exchange for coverage. When customer have agreed to pay this
amount and the insurance company has agreed to insure customer,
then the customer will receive a copy of the policy detailing the terms
and conditions of th policy.

If an insured incident occcures, customer will make a claim for

payment from the insurance company. Given the importance of
insurance, it is essential to make sure that your coverage is sufficient.
However, paying for too much insurance or insurance that don,t need
can be a significant drain to your finances.

The Insurance Act, 1972 and the General Insurance business

(nationalisation) Act, 1972 govern Fire and marine Insurance, while the
Indian Marine Insurance Act,1963 governs marine insurance in our
country. These laws contain provisions relating to the constitution,
management and winding up of insurance companies and the conduct
of insurance business of all types. All insurance business in india has
been nationalised.

INSURANCE COMPANIES

Insurance companies may be classified into two groups:

1) Life insurance companies, which sell life insurance, annuities and

pensions products.

2) Non-life, General, or Property/Casualty insurance companies,

which sell other types of insurance
 9

1.2) OBJECTIVE OF THE STUDY

This study is conducted to find out whether RELIANCE LIFE

INSURANCE is one of the top insurance companies in India or not.
The following objectives are as follows:

1. To analyse the market share of Reliance Life Insurance in the

Insurance sector.
2. To acquire the basic concept of insurance and risks.
3. To learn about the products offered by the Reliance Life
insurance.
4. To study about the competitors of the Reliance.
5. To know about the various types of insurance.
6. To study about the organization structure of Reliance.
7. To evaluate the position of Reliance in the mind of the customers.
8. To understand the basic principles of insurance and its application.
9. To study about the Unit Linked Insurance Policies and different
investments plans.
10. To study short term and long term plans of the company.
 10

1.3) INDUSTRY PROFILE

a. Origin and Development of the Industry ;

Life Insurance

In 1818 the British established the first insurance company in India in

Calcutta, the Oriental Life Insurance Company. First attempts at

regulation of the industry were made with the introduction of the Indian

Life Assurance Companies Act in 1912. A number of amendments to

this Act were made until the Insurance Act was drawn up in 1938.

Noteworthy features in the Act were the power given to the

Government to collect statistical information about the insured and the

high level of protection the Act gave to the public through regulation

and control. When the Act was changed in 1950, this meant far

reaching changes in the industry. The extra requirements included a

statutory requirement of a certain level of equity capital, a ceiling on

share holdings in such companies to prevent dominant control (to

protect the public from any adversarial policies from one single party),
 11

stricter control on investments and, generally, much tighter control. In

1956, the market contained 154 Indian and 16 foreign life insurance

companies. Business was heavily concentrated in urban areas and

targeted the higher echelons of society. “Unethical practices adopted

by some of the players against the interests of the consumers” then led

the Indian government to nationalize the industry. In September 1956,

nationalization was completed, merging all these companies into the

so-called Life Insurance Corporation (LIC). It was felt that

“nationalization has lent the industry fairness, solidity, growth and

reach.”

Some of the important milestones in the life insurance business

in India are:

1912: The Indian Life Assurance Companies Act enacted as the first

statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and non-life

insurance businesses.
 12

1938: Earlier legislation consolidated and amended to by the

Insurance Act with the objective of protecting the interests of the

insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance

companies.

General Insurance

The General Insurance industry in India dates back to the Industrial

Revolution and the subsequent increase in trade across the oceans in

the 17th century. As for Life Insurance, the British brought General

Insurance to India, and a similar path was followed in the development

of this industry. A number of private companies were in existence for

years and years until, in 1971, the Indian Government decided that the

public interest would be served by nationalizing the industry, merging

all the 107 companies into four companies, depending on the sort of

business transacted (Marine, Fire, Miscellaneous). These were the

National Insurance Company Ltd., the Oriental Insurance Company

Ltd., the New India Assurance Company Ltd., and the United India

Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and

 13

Madras respectively. The General Insurance Corporation (GIC) was set

up in 1972 as a ‘holding’ company, having these four companies as its

subsidiaries.

Some of the important milestones in the general insurance

business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company

to transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance

Association of India, frames a code of conduct for ensuring fair conduct

and sound business practices.

1968: The Insurance Act amended to regulate investments and set

minimum solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972

nationalize the general insurance business in India with effect from 1st

January 1973. 107 insurers amalgamated and grouped into four

companies viz. the National Insurance Company Ltd., the New

India Assurance Company Ltd., the Oriental Insurance Company

 14

Ltd. and the United India Insurance Company Ltd. GIC

incorporated as a company.

b) GROWTH AND PRESENT STATUS OF THE INDUSTRY

The domestic insurance industry in India is estimated to be around US$ 60.5

billion by 2010, of which US$ 35 billion will come from rural and semi-urban
areas. While the life insurance market is expected to grow to US$ 35 billion,
non-life insurance market will touch an estimated US$ 25 billion.

With the largest number of life insurance policies in force in the world,
India’s insurance sector accounted for 4.1 per cent of GDP in 2006-07,
up from 1.2 per cent in 1999-2000, far ahead of China where insurance
accounts for just 1.7 per cent of the GDP and even the US where
insurance penetration stands at 4 per cent of the GDP. One area that
continues to cause concern is the number of customer grievances in
insurance, especially in a few specific classes. This calls for more
transparency in designing the contract wording and on insisting that
the applicant is sufficiently informed about the coverage and more
particularly the exclusions. In addition, the legislation itself requires to
be transformed to meet the needs of the emerging markets. The Law
Commission of India which has gone extensively into the various
insurance laws has submitted its report. Further, the expert committee
headed by Mr. K.P. Narasimhan has also submitted its proposals
requiring amendments to the laws.

The demand for health insurance covers has seen a healthy increase,
and today the sector is the fastest growing segment in the non-life
insurance industry in India, which grew at over 40% last year. It is also
emerging as an increasingly significant line of business for life
insurance companies. During the last five years, the premium from
health insurance products in non-life companies has grown from 675
 15

crores in 2001-02 to Rs 3200 crores in 2006-07, almost 5 times its

level 5 years back. While this rate of growth appears to be very
healthy, it is on a low base, and health insurance penetration in the
country continues to be low. Only about 25 million persons are
presently covered for health through commercial insurance, in a
country of over 1.1 billion people. Overall, the Indian health sector is
still characterized by the near absence of any significant risk protection
against major health-related expenditure, as insurance and other
organized forms of payment for health services, including ESIS, CGHS
and other such schemes barely constitute a tenth of all health
expenditure in the country. Almost four-fifths of the health spending in
the country is private, out-of-pocket expenditure. In the absence of
such protection, the financial impact of hospitalization can be very
pronounced, and indeed is reported as one of the leading causes of
impoverishment in the country.

Indian insurance companies recorded a 19.9 per cent growth in

premium in dollar terms (adjusted for inflation) in 2006-07, compared to
the world market growth rate of 2.9 per cent. This rate of growth of the
industry looks particularly impressive when seen against the fact that
the combined penetration of both life and non-life is less than 2 per
cent of the GDP compared to world average of 7.52 per cent. Clearly,
the scope for growth is enormous.

Led by the Life Insurance Corporation (LIC), the life insurance industry
registered a growth of 110 per cent in fiscal 2006-07, taking the total
business to US$ 19.2 billion from the previous year’s US$ 9.1 billion.
The life insurance market has grown rapidly over the past six years,
with new business premiums growing at over 40 per cent per year
owing to the entry of a host of new players with significant growth
aspirations and capital commitments.

The total life insurance market premiums is likely to more than double
from the current US$ 40 billion to US$ 80-US$100 billion by 2012, says
a study by McKinsey. The study titled ‘India Insurance 2012: Fortune
Favours the Bold,’ expects a rise in premiums between 5.1 and 6.2 per
cent of the GDP in 2012 from the current 4.1 per cent driven by greater
 16

insurance intensity per capita as the average per capita income

increases and rise in penetration in urban and rural areas. The life
insurance premium contributions per capita have jumped from a little
over US$ 7 in 1999-2000 (pre-liberalisation) to US$ 38.5 in 2006-07.

Life insurance penetration in India - which was less than 1 per cent till
1990-91 - increased to 2.53 per cent in 2005, and to 3 per cent in
2006-07. While the impetus for growth has come from both public and
private insurers, the number of players in this segment have also
increased to 16 (15 in private sector), with Life Insurance Corporation
(LIC) being the dominant player (market share of over 74 per cent).

The general insurance industry grew 11.6 per cent between April and
November in 2007-08 with robust performances by private players.
The 13 non-life insurers collected US$ 4.7 billion in premium against
US$ 4.2 billion in the same period last year. While the public sector
could increase its premiums by just 3.57 per cent, 9 private sector
players clocked premium growth of 26.49 per cent. Private sector
players’ market share has grown to about 40 per cent in FY08 as
compared to the public sector’s 60 per cent..
 17

c. Future of the industry

The Indian insurance industry is set to grow in future on the back of

improving education level, tax exemptions and high growth in
economy.

Oriental Insurance Company, a leading insurance providing company

in India, revealed that the Indian general insurance industry is
expected to reach Rs 50,000 Crore (US$ 11.75 Billion) during 2009-
2013, compared to Rs 28,130 Crore (US$ 6.52 Billion) in 2007-08, as
reported by IndiaTimes.

The Indian insurance industry also estimated that during 2008-09, the
state-owned general insurance companies are aiming to touch the total
premium income of around Rs 20,000 Crore (US$ 4.70 Billion), a 23%
jump from Rs 16,259 Crore (US$ 3.82 Billion) in 2007-08. In 2007-08,
the total premium covered by non-life insurance companies in India
was Rs 28,126.29 Crore (US$ 6.61 Billion) against Rs 24,998.41 Crore
(US$ 5.87 Billion) in 2006-07.

According to market experts, tax benefits such as exemption of service

tax on health insurance and personal accident insurances,
encouragement to growth of independent agents together with
abolition of sealing on commission plus the right to policy planning
would be the key reasons for the projected growth in the Indian
insurance industry.

The insurance industry is also focusing on generating insurance

development skills and is providing liberalized standards for the
creation of intermediaries to enhance the insurance services that
would help in achieving high growth in years to come.
 18

Moreover, the detariffing will initiate the launch of latest and innovative
insurance products and exploitation of vast untapped insurance market
would boost the revenue growth because the number of insurance
companies is growing in India. The growth in the Indian insurance
industry is also anticipated because the insurance sector is expected
to pay an additional focus on micro and retail insurance in villages,
which offers an extensive growth opportunity to players.

Also, the rising education level accompanied by the booming economy

ensures that the insurance market attracts an increasing number of
customers. The growing population with improving purchasing power,
encouraging to purchasing homes and automobiles, is offering great
scope for growth in Indian insurance market.

A Senior Research Analyst at RNCOS said,“The insurance industry in

India is expected to grow at a rapid pace in future due to favorable
business conditions in the country. The vast growth opportunities would
help in attracting more foreign investors in the insurance sector. This
would further help in the improvement of quality of the insurance
products and schemes in the country.”

As per a recent report "Indian Insurance Industry Forecast (2007-

2009)" published by RNCOS, it has been found that "Life insurance
market in India will likely reach around Rs 1683 Billion by the year
2009. Changing consumer behavior, GDP growth rate, changing socio
economic demography, and natural calamities occurring from time to
time will remain the key contributors in this growth."

April 2007, current FY’s first month, saw new businesses expand by
49%, whereas general insurance players witnessed 16% increase
during the same month.
Outstanding performance of SBI Life, ICICI Prudential, and LIC helped
the Indian life insurance industry in mopping up almost Rs 2,892 crore
in April this year, whereas it was Rs 1,996 crore in the same month last
year. On the other hand, Reliance Life, ING Vysya, and Bajaj Allianz
were amongst those insurers that came across a decline in their
premium collection over the review period, as per the data compiled by
Insurance Regulatory & Development Authority.
 19

Selling almost 15,89,684 policies during this April, LIC - the largest life
insurer in India -witnessed 57% growth in its new premiums that
reached to Rs 2,134 crore. LIC grabbed a market share of almost
71.56% during this April. Non-life or general insurance industry saw a
growth of 16% during this month, and ICICI Lombard was the second
largest player in this segment. Business Standard published this in
news on 14 June 2007.

Looking at the current scenario, it can be made out that the four
established public-sector players namely, National Insurance, United
India, Oriental Insurance, and New India Assurance, may have to face
stiff competition from private players like Bajaj Allianz, Reliance
General, and ICICI Lombard, as per Business Standard.

According to RNCOS report "Indian Insurance Industry Forecast

(2007-2009)", "Performance of life insurance industry remained better
in comparison to non life segment over the five year period spanning
2001-2005. Some qualitative factors, like the deregulation rate of
insurance market, and implementation rate of technologies prevailing
in the market, need to perform up to the industry expectations in order
to improve the growth rate of Indian life insurance market."

This report provides an objective analysis of all aspects of Indian

insurance industry. The issues addressed in this report include:
prospective investment areas in Indian life insurance industry, market
strategies adopted by key players in this segment, opportunities and
challenges present in this industry, and so on.
 20

CHAPTER 2) PROFILE OF THE ORGANIZATION

2.1 ORIGIN OF THE ORGANIZATION

Few men in history have made as dramatic a contribution to their

country’s 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 India’s capital markets, the champion of shareholder

interest.

• But the role Dhirubhai cherished most was perhaps that of India’s

greatest wealth creator. In one lifetime, he built, starting from the

proverbial scratch, India’s largest private sector enterprise.

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• 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

a Rs 60,000 crore colossus—an 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 India’s capital markets.

In 1977, when Reliance Textile Industries Limited first went public,

the Indian stock market was a place patronised 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 Dhirubhai’s extraordinary vision and leadership, Reliance

scripted one of the greatest growth stories in corporate history

anywhere in the world, and went on to become India’s largest

private sector enterprise.

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• Through out 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 world’s largest shareholder

families.

ABOUT RELIANCE LIFE INSURANCE

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.
Reliance Life Insurance is another step forward for Reliance Capital
Limited to offer need based Life Insurance solutions to individuals and
Corporates.
 23

2.2) GROWTH AND DEVELOPMENT OF THE ORGANISATION

Reliance Life Insurance, one of India’s top private sector life insurance
companies, on 18/06/2008 unveiled a unit-linked insurance plan (ULIP)
that offers guaranteed contributions of up to 250 percent, apart from
investment returns and maturity benefits.

“One of the unique propositions of Reliance Super InvestAssure Plan

(RSIP) is that its contributions into a policyholder’s account range from
50 percent (in the 10th year) to 250 percent (by the 30th year) of the
paid annualised premiums. This is the additional income, which the
policyholders will be getting from the company. The plan will have
compounded growth as well, depending on the market conditions,”
said P. Nandagopal, CEO, Reliance Life Insurance.

According to the company, this is Reliance Life’s first ‘Pure Equity

Fund’ option, with added shariah features of having no investments
into industries like non-banking finance, liquor, cigarettes, tobacco,
entertainment, leather and sugar, among others.

The plan offers eight different fund options, including the safe GILT
fund as well as sectoral funds like infrastructure, energy and mid-cap
which provide relatively higher returns. Moreover, RSIP provides cover
to even for children of 30 days and covers life of the insured up to 20
times of the annual premium, depending on the age.

With an annual premium as low as Rs 5,000, the insured can get a

wide array of life insurance and health insurance benefits with
maximum range of riders, including term life insurance, major surgical
benefit, critical illness and accidental death and total permanent
disablement for a nominal additional premium.
 24

“The policyholder can avail all these benefits with the additional
features of a unit linked plan. We aim to make it our top-selling
product, given the additional values and sound maturity benefits, and
expect a sales contribution of 20-25 percent by the end of this financial
year,”' said Nandagopal.

Achievements

RLIC has been one of the fast gainers in market share in new
business premium amongst the private players with an incremental
market share of 4.1% in the Financial Year 2007-08 – from 3.9% in
April 07 to 8% in Feb 08.

Also continues to be amongst the fast growing Private Life

Insurance Companies with a YOY growth of 195% in new business
premium as of Mar’08.

A Company that has crossed 1.7 Million policies in just 2 years of

operation, post take over of AMP Sanmar business.
Initiated Express Life – an Unique ’Over the Counter’ sales process
for Unit Linked Insurance Policies in the Industry.

Accomplished a large distribution ramp-up in the Industry in a short

span of time by opening 600 branches in 10 months taking the
overall branch network above 740.

RLIC continues to be one of the two Life Insurance companies in India

to be certified ISO 9001:2000 for all the processes.

Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007-

Ceritificate of Merit in the Financial Services category by Council for
Fair Business Practices (CFBP).
 25

2.3) PRESENT STATUS OF THE ORGANISTION

2.4) FUTURE PLANS OF THE ORGANIZATION

Anil Dhirubhai Ambani Group firm Reliance Life Insurance has

launched a pure equity unit linked insurance plan that provides
investors an opportunity to invest in eight different fund options,
including a Shariah compliant fund. Reliance Life Insurance is the
fourth largest private insurer in the country and has introduced
'Reliance Super InvestAssure Plan (RSIP)' that offers guaranteed
additional contribution for policyholders, apart from returns on
investment and maturity benefits.

This is Reliance Life's first pure equity unit linked insurance plan (ULIP)
and has added Shariah compliant features like having no investments
into industries such as non-banking finance, liquor, cigarettes, tobacco,
and sugar among others, a company statement said.
The RSIP is designed to provide an opportunity to invest funds in eight
different fund options, including the Gilt and sectoral funds like
infrastructure, energy and mid-cap which, the company stated, provide
relatively higher returns.

"One of the unique propositions of RSIP is that it contributes into a

policyholder's account from 50 per cent (in 10th year) to 250 per cent
(by 30th year) of the paid annualised premiums. This is the additional
income which policyholders will get from the company and it will have
compounded growth as well, depending on market conditions,"
Reliance Life Insurance CEO, P. Nandagopal, said.
He then added: “We aim to make it our top-selling product given the
additional values and sound maturity benefits and expect a sales
contribution of 20-25 per cent by the end of this financial year.” It also
 26

provides a plan for a child of 30 days and covers life of the insured up
to 20 times of the annual premium, depending on the age.

Reliance Life Insurance expects the ‘Super InvestAssure Plan’ to

emerge as its flagship product under ULIPs and account for about 25
per cent of the new premium income for the current fiscal. In 2007-08,
the company’s new premium collections stood at Rs 2,754 crore.
Based in Tunbridge Wells UK, Reliance Mutual dates back to 1911
when it was known as Farringdon Reliance Friendly Collecting Society.
In 1951, it converted to a Mutual Society - having no shareholders, its
existence came about solely to provide benefits to the policyholders.
Reliance Mutual currently provides life insurance, critical illness cover
and pension and investment products to clients in the UK. It 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 Life Insurance is another step forward for Reliance Capital
Limited to offer need based life insurance solutions to individuals and
Corporates in India.

The plan claims to be the ‘only plan to offer fixed income for life even in
case of accidental disability of the child’, to ‘offer rewarding online
community for child’s overall development’ and boasts that ‘the
company also donated Rs 5 Lakh to Akanksha Foundation, for
underprivileged children’. Reliance Life Insurance are very optimistic
about the new plan and hope that customers will be attracted to its
benefits and bonuses.
“The Reliance Secure Child Plan aims to offer an innovative product
with unique and fun-filled benefits to children while securing their
future. This is in line with our strategy to offer best-in-class products to
our customers”, said Mr. P. Nandagopal while launching the product.
The plan also offers an inbuilt waiver of premium benefit in the event of
the death of the insured proposer (parent), that protects the future of
the child by paying all the future premiums, so that the plan remains in
full force.
 27

2.5) FUNCTIONAL DEPARTMENTS OF THE

ORGANISTION
 28

2.6) ORGANIZATION STRUCTURE AND

ORGANIZATION

CHART

• Anil D. Ambani, Chairman

Shri Anil D.Ambani is the chairman of the Reliance ADA Group, namely

Reliance Communications, Reliance Capital, Reliance energy and Reliance

Natural Resources limited. He is also Chairman of the Board of Governors of

Dhirubhai Ambani Institute of Information and Communication Technology,

Gandhi Nagar, Gujarat. Anil D Ambani joined Reliance in 1983 as Co-Chief

Executive Officer, and was centrally involved in every aspect of the company’s

management over the next. He is a member of Wharton Board of Overseers,

the Wharton School,USA, Central Advisory Committee, Central Electricity

Regulatory Commission, Board of Governors, Indian Institute of Management,

Ahmedabad, Board of Governors Indian Institute of Technology, Kanpur.

In June 2004, he waselected for a six-yearterm as an independent member of

the Rajya Sabha, Upper House of India’s parliament a position he chose to

resign voluntarily on March 25, 2006.

• Amitabh Jhunjhunwala, Vice-Chairman

 29

Shri Amitabh Jhunjhunwala,52, is a Fellow Chartered Accountant. He has

vast experience in the areas of financial services and capital markets.

Shri jhunjhunwala was appointed to the Board on March 7,2003 and was

appointed Vice Chairman on March 20, 2006. He is a Director on the Board

of Harmony Art Foundation and Reliance Anil Dhirubhai Ambani Group

Pvt.Ltd.

• Rajendra Chitale, Independent Director

Shri Rajendra P.Chitale,47 an eminent Chartered Accountant, is the

Managing partner of M/s M.P.Chitale & Associates. He is a Director on

boards of the National Securities Clearing Corporation Limited, Asset

Reconstruction Company (India) Ltd, Hinduja TMT Limited, HTMT Global

Solutions Ltd, Ambuja Cement Limited, SME Rating Agency of India Limited,

Ishan Real Estate PLC and Reliance General Insurance Company Ltd. He

is also a member of the advisory board of the Insurance and Regulatory

Authority of India (IRDA). He has also on the boards of Life Insurance

Corporation of India, Unit Trust of India, SBI Capital markets Ltd.,

National Stock Exchange of India Ltd. And small Industries Development

Bank of India.

• Shri C.P.Jain
 30

Shri C.P.Jain,61, is the former Chairman and Managing Director of NTPC

Ltd. Shri jain has an illustrious career spanning over four decades of

contribution in the fields of financial management, general management and

business leadership. He is a fellow member of the Institute of Chartered

Accountants of India with an advanced diploma in Management and is a law

graduate. Shri C.P.Jain joined the Board of NTPC in 1993 as Director

(Finance), was elevated as Chairman & Managing Director in September

2000 and superannuated in March 2006. He is Chairman of the Global

Studies Committee of World Energy Council (WEC), world’s largest energy

NGO with nearly hundred member-nations. He has been on several

important committees of the Government of India, latest being the ‘Adhoc

Group of Expert on Empowerment of CPSEs’. He was Chairman of

standingConference of public Enterprises (SCOPE) between April 2003 and

March 2005. He is a Director of IL & FS Infrastructure Development

Corporation and, is also a member of the Audit Advisory Board of the

Comptroller and Audit general of India.

Company’s current Board of Directors

 31

Designations Names

Chief Executive Officer Mr.P.Nandagopal

Country Head-Sales & Distribution Mr. Manoj Singh Chauhan

Chief financial Officer Mr.Rajesh Bahl

Appointed Actuary Ms.Pournima Gupta

Chief Investment Officer Mr.R. Rangarajan

Chief Human Resource Officer Ms. Maneesha Thakur

Chief Technology Officer Mr.C.Mohan

2.7) PRODUCT AND SERVICE PROFILE OF THE

ORGANIZATION

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
 32

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)

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
 33

10. Reliance Term Plan

(formerly Raksha Shree)

Products (Group / Corporate Plans)

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

2.8) MARKET PROFILE OF THE ORGANIZATION

MARKETING STRATREGIES OF THE COMPANY

 34

• 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-

branded solution would require approval from the Insurance

Regulatory and Development Authority

Customers of RWorld, 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,

 35

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.

 36

CHAPTER 3) DISCUSSIONS ON TRAINING

3.1) STUDENT’S WORK PROFILE (ROLE AND

RESPONSIBILITIES)

I have been working in RELIANCE LIFE INSURANCE as a

Relationship Executive in the Worksite group. As a relationship
executive, I had to work under the guidance of Sales manager.Sales
manager had the task to make a team of 10 to 12 relationship
Execitives. For my industry training I was been designated at the
branch office in New Friend’s Colony , New Delhi. First of all I
would like to tell something about the Worksite Group. The worksite
group is one of the new channels of Reliance Life Insurance. The
main function of worksite is to deal with the corporates. Worksite
process is new concept to India but it is a very big industry in the
U.S.A. In this process company directly contacts the Human
Resource department of corporate company and provide insurance
policies to the employees by directly approaching them.
My role and responsibilities are as follows:

• Prospecting- Searching for prospects, or leads. As such, I

have to generate leads to sell policies. Some of the leads were
given by the company and the rest we have to generate by
ourselves.

• Targeting- In this I have decide how to allocate time amongst

prospects and customers. In the beginning I did the business
through my natural market i.e. my relatives and friends.

• Communicating- Communicating information about the

company’s products and services with the customers. As such
customers require different plans and products according to its
needs and requirements.
 37

• Selling- Approaching, presenting, answering questions,

overcoming objections and closing sales.

• Servicing- Providing various services to the customers-

consulting on problems, rendering technical assistance,
arranging financing, expediting delivery.

• Information gathering- Conducting market research and

doing intelligence work.
 38

3.2) DESCRIPTION OF LIVE EXPERIENCE

From my work experience I have learnt a lot about the corporate

world. I have learnt about the various aspects about the Sales. As
such I was in the sales department so I learnt about the various
strategies and techniques used by the the insurance companies to sell
policies.

In my opinion to sell insurance is a very tough work. Generally it

takes about four to five meetings with customers to sell the policy.
As such insurance is intangible it is difficult to sell i.e. it cannot be
seen. I was selling a thing which cannot be seen and most of the
customers are unaware about the benefits of insurance. It takes a lot
to convince the customer to take the policy. As most of the Indian
customers are unaware about the benefits of insurance.

In face to face meetings with the customers I generally tell them

about benefits of insurance such as investments, tax saving and life
cover.
By working in insurance sector I also came to know that insurance
cannot be sell by telling the truth. That’s why the customer is usually
kept in dark about the hidden charges and costs.
As such if customer knows about these charges he is reluctant to
take policy.

By working in the excellent working environment of Reliance Life

Insurance offices I also learnt about the responsibilities of Sales
Manager, Senior Sales Manager, Assistant Branch Managers and
Branch Managers. I also learnt about the works of advisors and
tellecallers. Advisors are the backbone of every company. Advisors
generates the business for the company without them the company is
nothing.
My one of the best experience is talking to Mrs.Gunjan Sharma a
professional. She does not know anything about the insurance but
she listened to me very carefully patiently and after understanig she
 39

really appreciate the policies and insist in taking the policy, but after
my meeting with her she ended up in taking two policies one for
herself and second for her husband.

So it can be easily concluded that working with Reliance Life

Insurance Ltd was full of learning and an exciting experience.

3.3) CONTRIBUTION TO RELIANCE LIFE

INSURANCE
 40

I generally contributed to Reliance Life Insurance by assisting my

team in generating leads in the beginning and searching the
prospects for the company. I contributed by selling insurance
policies to customers. After a month when I learnt about the
products of the company I used to train new employees.
I report to my customers whenever I was needed whether to conduct
meetings or to solve any problem relating to policy.
I accompany my sales manager whenever I was needed in the
outdoor meetings. My responsibility in the team was to properly fill
the proposals forms without any mistakes and to check the required
documents required in the proposal form of the policy.
My work does not stop by just login the policy but after that also.
We are taught to make long term relations with the customers and
thus provide them with good services.

My work also ensures that the customers are always at ease and this
is done through providing after-sales services so that all their
grievances can be easily and timely managed and the reputation of
my organistion does not suffer because there is a saying that, a
satisfied customer will bring one more customer but a dissatisfied
customer takes away four with him.
I also contributed by achieving the targets set by the company for
me. I met my selling targets before my training.
 41

SUMMARY OF FINDINGS

SUMMARY OF LEARNING

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.

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.

 42

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 favor.

CHAPTER 4) SUMMARY AND CONCLUSIONS

4.1 SUMMARY OF LEARNING EXPERIENCE

I learnt a lot while working in RELIANCE LIFE INSURANCE. I learnt about

the history of reliance Life Insurance and about the way of working of the
insurance sector.

I was able to know the market position and competitors of Reliance Life
insurance in the insurance sector. The concept that people have in mind was
easily known taking to them which the real image can be easily predict by
listening to their experiences related to the insurance sector. By working with
Reliance life Insurance, I was able to learn about its organizational culture and
the way of their working. The most important thing, which I learned by
working as a marketer, was the way of communicating and convincing people
and how to determine their needs.

I also learnt about the various products offered by the Reliance life Insurance.

I learnt about the various investments and protection plans of the company.
 43

The most important thing that I leartn is to handle customers. I learnt a lot
from the customers about the minor things related to insurance. I learnt about
the working environment of the Reliance Life insurance and its system.

By working in Reliance it had helped me in becoming professional and to

understand the corporate world.

4.2) CONCLUSIONS AND RECOMMENDATIONS

By working in Reliance life insurance I came to know that it has built internal
and external structures to support the delivery of its business goals. The
regional structure is the best way of supporting this growth, allowing attention
to local requirement while at the same building on a clear strategic direction
from the center. A culture of innovation, teamwork and partnership means that
the reliance has a firm foundation of relationships and open communication
channels on which to build its growth.

As working there I came to know about some limitations in the system which
I want to recommend. Through my research, it was known that this company
has some limitatrions with the help of views presented by the people. Ig this
company makes some changes, it can meet its objectives easily and can attain
number one position in the insurance sector.

The improvements that the company can make are as follows:

1 .It should reduce its paper work, as for purchasing the policy they have to go
through a lot of formalities.
 44

2.) It should take less time in delivering the policy to the customers.

3.) The tele-calling department need to be improved, they must not repeat the
phone calls to the same customer as repeated calls on the same topic irritate
them.
 45

ANNEXURES AND

QUESTIONNAIRE
 46

QUESTIONNAIRE

1. ARE YOU EMPLOYED?

YES NO

If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?

YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST?

(RANK THEM)

a) LIC

b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) RELIANCE LIFE INSURANCE

f) TATA AIG LIFE

g) ANY OTHER ________( Specify)

5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY?

(Please Tick)

a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______

(Specify)

6. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER?

(RANK THEM)

a) COVER FUTURE UNCERTAINITY

b) TAX DEDUCTIONS

c) FUTURE INVESTMENT
 47

d) ANY OTHER _________ (Specify)

7. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?

(RANK THEM)

a) LOW PREMIUM

b) LARGER RISK COVERANCE

c) MONEY BACK GUARNTEE

d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS

f) ANY OTHER _________ (Specify)

8. YOUR MONTHLY INCOME?

a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)

9. DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAY’S

SCENARIO IS NOT ESSENTIAL?

_____________________________________________________

10. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

c) A TOOL TO PROTECT FUTURE

11. HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE?

a) CUSTOMER APPROCHED INSURANCE COs

b) INSURANCE COs APPROCHED CUSTOMER

12. ARE YOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING
 48

13. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

14 DO YOU PAY TAXES?

YES NO

15. WHERE HAVE YOU INVESTED FOR TAX SAVING?

(RANK THEM)

a) LIC

b) NSC

c) BONDS

d) PPF

e) PF

f) EPF

16.WHICH IS THE BEST FORM OF INVESTMENTS?

(RANK THEM)

a) FIXED ASSETS

b) BANK DEPOSITS

c) JEWELLERY

d) SECURITIES, i.e. Bonds, MFs

e) SHARES

f) INSURANCE
 49

17. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?

a) SAVING & RETURNS

b) SECURITY

c) TAX BENIFITS

18. WHAT’S THE RIGHT AGE TO BUY INSURANCE?

a) AFTER 25 Yrs

b) AFTER 35 Yrs

c) AFTER 45 Yrs

d) ANYTIME

19.HOW WOULD YOU RATE INDIAN INSURANCE COs?

a) RIGID PLANS

b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES

d) NON-AGGRESSIVE

e) SATISFACTORY

f) GOOD

g) VERY GOOD

20. WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs?

(RANK THEM)

a) A TRUSTED NAME

b) FRIENDLY SERVICE & RESPONSIVENESS

c) GOOD PLANS

d) ACCESSIBILITY
 50

21. ARE YOU PLANNING FOR NEW INVESTMENTS?

PLANNING NOT PLANING

22. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM

THE CITY OFFERS BETTER SERVICE & PRODUCTS?

a) YES

b) NO

c) UNCERTAIN

THANK YOU

NAME:_________________________

ADDRESS:______________________
______________________________
OCCUPATION:___________________

P
 51

Reliance
Super InvestAssure Plan
A Reliance Capital Company

get more than

you can ask for
Don’t we all wish that there was always more of
w
Reliance Super InvestAssure Plan

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT

PORTFOLIO IS BORNE BY THE POLICYHOLDER.
You have always aspired for the best in life. And we help you achieve that.
Here’s a unique plan which combines protection and savings. It also offers
complete flexibility to gain control over your investments vis-à-vis your
financial needs and risk appetite.
We value your regular investments and thus reward you with guaranteed
additions thus promising unmatched benefits. This plan also offers you a
unique option of moving from a conservative fund to an aggressive fund
systematically, to take advantage of the Rupee cost averaging model.
A plan that promises you, what you ought to deserve as you reach greater
heights in life. What more can you ask for except gifting yourself with
Reliance Super InvestAssure Plan.

Key features – Reliance Super InvestAssure Plan

¾ Twin benefit of market linked return and insurance protection

¾ Guaranteed additions at the rate of 50% of your first year’s basic
premium at interval of every 5 years from 10th year till policy is in force
¾ Investment opportunity with flexibility - Choose from 8 pure
investment fund options
¾ Option to pay Top-up premium(s)
¾ Liquidity in the form of partial withdrawals
¾ A host of optional rider benefits to enhance protection cover

How does the Reliance Super InvestAssure Plan work?

As a customer you have the liberty to choose between eight fund options.
The premium contributions made by you, net of Premium Allocation
Charges are invested in funds of your choice. The units are allocated
depending on the price of units for the funds. The fund value is the total
value of units that you hold across all the unit-linked funds.
 52

On the 10th policy anniversary 50% of first year’s basic premium paid by the
policyholder will be added to the fund value as a guaranteed addition.
Similar guaranteed additions will be added on every 5th policy anniversary
after the 10th policy anniversary till the policy is in force.
Sum Assured:
Minimum Sum Assured: Annualized Premium payable for five years
Maximum Sum Assured: depends on the age at entry.
Age at entry (last birthday) Maximum Sum Assured
0 to 40 20 times of Annualized Premium
41 to 45 15 times of Annualized Premium
46 to 50 10 times of Annualized Premium
51 to 60 5 times of Annualized Premium

Benefits

Life Cover Benefit:

¾ If death of the life assured occurs before commencement of risk cover#,
total fund value as on the date of intimation of death will be paid
¾ If death of the life assured occurs after commencement of the risk cover#
but before the 60th birthday, the higher of I or II will be paid, where
I. Sum Assured (less all partial withdrawals made from the policy
fund during the 24 months prior to the date of death)
II. Total fund value as on the date of intimation of death.
¾ If death of the life assured occurs on or after 60th birthday, the higher of
I or II will be paid, where
 53

BIBLIOGRAPHY

1.) Google.com
2.) Reliance Life Insurance
3.) Mrs.Meetu Verma