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CONTENTS
Pages
ACKNOWLEDGEMENT 03
PREFACE 04
EXECUTIVE SUMMARY 06
INTRODUCTION TO THE INDUSTRY 07
INTRODUCTION TO THE COMPANY 20RESEARCH METHODOLOGY 26
Title
Objective of the Study
Scope of the Study
Significance of the Industry
Significance of the Research Research Technique
Sampling Methodology
Sampling unit
Sampling Area
Sample Size
LimitationsMARKETING STRATREGIES OF THE COMPANY 30
FACTS AND FINDINGS 32
DATA AND INTERPRETATION 34
CONCLUSION & RECOMMENDATIONS 54
BIBLIOGRAPHY 56
ANNEXURE
Questionnaire 58
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PREFACE
The liberalization of the Indian insurance sector has been the subject of
much heated debate for some years. The policy makers where in the catch
22 situation wherein for one they wanted competition, development and
growth of this insurance sector which is extremely essential for channeling
the investments in to the infrastructure sector. At the other end the policy
makers had the fears that the insurance premia, which are substantial,
would seep out of the country; and wanted to have a cautious approach of
opening for foreign participation in the sector.
As one of the rare occurrences the entire debate was put on the back burner
and the IRDA saw the day of the light thanks to the maturing polity
emerging consensus among factions of different political parties. Though
some changes and some restrictive clauses as regards to the foreign
participation were included the IRDA has opened the doors for the private
entry into insurance.
Whether the insurer is old or new, private or public, expanding the market
will present multitude of challenges and opportunities. But the key issues,
possible trends, opportunities and challenges that insurance sector will
have still remains under the realms of the possibilities and speculation.
What is the likely impact of opening up Indias insurance sector?
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The large scale of operations, public sector bureaucracies and cumbersome
procedures hampers nationalized insurers. Therefore, potential private
entrants expect to score in the areas of customer service, speed and
flexibility. They point out that their entry will mean better products and
choice for the consumer. The critics counter that the benefit will be slim,
because new players will concentrate on affluent, urban customers as
foreign banks did until recently. This seems to be a logical strategy. Start-
up costs-such as those of setting up a conventional distribution network-are
large and high-end niches offer better returns. However, the middle-market
segment too has great potential. Since insurance is a volumes game.
Therefore, private insurers would be best served by a middle-market
approach, targeting customer segments that are currently untapped.
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EXECUTIVE SUMMARY
In todays corporate and competitive world, I find that insurance sector has
the maximum growth and potential as compared to the other sectors.
Insurance has the maximum growth rate of 70-80% while as FMCG sector
has maximum 12-15% of growth rate. This growth potential attracts me to
enter in this sector and RELIANCE LIFE INSURANCE has given me the
opportunity to work and get experience in highly competitive and
enhancing sector.
The success story of good market share of different market
organizations depends upon the availability of the product and
services near to the customer, which can be distributed through a
distribution channel. In Insurance sector, distribution channel
includes only agents or agency holders of the company. If a
company like RELIANCE LIFE INSURANCE, TATA AIG, MAX
etc have adequate agents in the market they can capture big market
as compared to the other companies.
Agents are the only way for a company of Insurance sector through
which policies and benefits of the company can be explained to the
customer .
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INTRODUCTION TO THE INDUSTRY
THE HISTORY OF INDIAN INSURANCE 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), 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
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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.
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
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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 Madras respectively.
The General Insurance Corporation (GIC) was set up in 1972 as a
holding company, having these four companies as its sub sidiaries.
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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 Ltd. and the United
India Insurance Company Ltd . GIC incorporated as a company.
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MM AA JJ OO R R PP LL AAYY EE R R SS II NN TT HH EE II NN SSUU R R AA NN CC EE II NNDD UU SSTT R R YY II NN II NN DD II AA
Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) was established on 1 September
1956 to spread the message of life insurance in the country and mobilise
peoples savings for nation -building activities. LIC with its central office
in Mumbai and seven zonal offices at Mumbai, Calcutta, Delhi, Chennai,
Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in
important cities and 2,048 branch offices. LIC has 5.59 lakh active agents
spread over the country.
The Corporation also transacts business abroad and has offices in Fiji,
Mauritius and United Kingdom. LIC is associated with joint ventures
abroad in the field of insurance, namely, Ken-India Assurance Company
Limited, Nairobi; United Oriental Assurance Company Limited, Kuala
Lumpur; and Life Insurance Corporation (International), E.C. Bahrain. It
has also entered into an agreement with the Sun Life (UK) for marketing
unit linked life insurance and pension policies in U.K.
In 1995-96, LIC had a total income from premium and investments of $ 5
Billion while GIC recorded a net premium of $ 1.3 Billion. During the last
15 years, LIC's income grew at a healthy average of 10 per cent as against
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the industry's 6.7 per cent growth in the rest of Asia (3.4 per cent in
Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below
the poverty line, with 50 per cent subsidy in the premium rates. LIC's
claims settlement ratio at 95 per cent and GIC's at 74 per cent are higher
than that of global average of 40 per cent. Compounded annual growth rate
for Life insurance business has been 19.22 per cent per annum
General Insurance Corporation of India (GIC)
The general insurance industry in India was nationalized and a government
company known as General Insurance Corporation of India (GIC) was
formed by the Central Government in November 1972. With effect from 1
January 1973 the erstwhile 107 Indian and foreign insurers which were
operating in the country prior to nationalization, were grouped into four
operating companies, namely, (i) National Insurance Company Limited;
(ii) New India Assurance Company Limited; (iii) Oriental Insurance
Company Limited; and (iv) United India Insurance Company Limited.
(However, with effect from Dec'2000, these subsidiaries have been de-
linked from the parent company and made as independent insurance
companies). All the above four subsidiaries of GIC operate all over the
country competing with one another and underwriting various classes of
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general insurance business except for aviation insurance of national
airlines and crop insurance which is handled by the GIC.
Besides the domestic market, the industry is presently operating in 17
countries directly through branches or agencies and in 14 countries through
subsidiary and associate companies.
IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING
HAVE BEEN PERMITTED TO ENTER INTO INSURANCE
BUSINESS: -
The introduction of private players in the industry has added to the colors
in the dull industry. The initiatives taken by the private players are very
competitive and have given immense competition to the on time monopoly
of the market LIC. Since the advent of the private players in the market the
industry has seen new and innovative steps taken by the players in this
sector. The new players have improved the service quality of the insurance.
As a result LIC down the years have seen the declining phase in its career.
The market share was distributed among the private players. Though LIC
still holds the 75% of the insurance sector but the upcoming natures of
these private players are enough to give more competition to LIC in the
near future. LIC market share has decreased from 95% (2002-03) to 82 %(
2004-05).
1. HDFC Standard Life Insurance Company Ltd .
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HDFC Standard Life Insurance Company Ltd. is one of Indias leadi ng
private life insurance companies, which offers a range of individual and
group insurance solutions. It is a joint venture between Housing
Development Finance Corporation Limited (HDFC Ltd.), Indias leading
housing finance institution and The Standard Life Assurance Company, a
leading provider of financial services from the United Kingdom. Their
cumulative premium income, including the first year premiums and
renewal premiums is Rs. 672.3 for the financial year, Apr-Nov 2005. They
have managed to cover over 11,00,000 individuals out of which over
3,40,000 lives have been covered through our group business tie-ups.
2. RELIANCE LIFE INSURNACE Life Insurance Co. Ltd.
RELIANCE LIFE INSURNACE Life Insurance Company Limited is a
joint venture that brings together two large forces - Max India Limited, a
multi-business corporate, together with New York Life International, a
global expert in life insurance. With their various Products and Riders,
there are more than 400 product combinations to choose from. They have a
national presence with a network of 57 offices in 37 cities across India.
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3. ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank, a premier financial powerhouse and Prudential plc, a leading
international financial services group headquartered in the United
Kingdom. ICICI Prudential was amongst the first private sector insurance
companies to begin operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA). The company
has a network of about 56,000 advisors; as well as 7 bancassurance and
150 corporate agent tie-ups.
4. Om Kotak Mahindra Life Insurance Co. Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between
Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc.
5.Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance Company is a joint venture between Aditya Birla
Group and Sun Life financial Services of Canada.
Tata AIG Life Insurance Company Ltd.
SBI Life Insurance Company Limited
ING Vysya Life Insurance Company Private Limited
Allianz Bajaj Life Insurance Company Ltd.
Metlife India Insurance Company Pvt. Ltd.
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AMP SANMAR Assurance Company Ltd.
Dabur CGU Life Insurance Company Pvt. Ltd.
1. Royal Sundaram Alliance Insurance Company Limited
The joint venture bringing together Royal & Sun Alliance Insurance and
Sundaram Finance Limited started its operations from March 2001. The
company is Head Quartered at Chennai, and has two Regional Offices, one
at Mumbai and another one at New Delhi.
2. Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited is a joint venture
between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a
reputation of expertise, stability and strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and
Development Authority (IRDA) certificate of Registration (R3) on May
2nd, 2001 to conduct General Insurance business (including Health
Insurance business) in India. The Company has an authorized and paid up
capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% is
held by Allianz, AG, Germany.
3. ICICI Lombard General Insurance Company Limited
ICICI Lombard General Insurance Company Limited is a joint venture
between ICICI Bank Limited and the US-based $ 26 billion Fairfax
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Financial Holdings Limited. ICICI Bank is India's second largest bank,
while Fairfax Financial Holdings is a diversified financial corporate
engaged in general insurance, reinsurance, insurance claims management
and investment management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings
Limited, is one of Canada's oldest property and casualty insurers. ICICI
Lombard General Insurance Company received regulatory approvals to
commence general insurance business in August 2001.
4. Cholamandalam General Insurance Company Ltd.
Cholamandalam MS General Insurance Company Limited (Chola-MS) is a
joint venture of the Murugappa Group & Mitsui Sumitomo.
Chola-MS commenced operations in October 2002 and has issued more
than 1.4 lakh policies in its first calendar year of operations. The company
has a pan-Indian presence with offices in Chennai, Hyderabad, Bangalore,
Kochi, Coimbatore, Mumbai, Pune, Indore, Ahmedabad, Delhi,
Chandigarh, Kolkata and Vizag.
5. TATA AIG General Insurance Company Ltd.
Tata AIG General Insurance Company Ltd. is a joint venture company,
formed from the Tata Group and American International Group, Inc.
(AIG). Tata AIG combines the strength and integrity of the Tata Group
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with AIG's international expertise and financial strength. The Tata Group
holds 74 per cent stake in the two insurance ventures while AIG holds the
balance 26 per cent stake.
Tata AIG General Insurance Company, which started its operations in
India on January 22, 2001, offers the complete range of insurance for
automobile, home, personal accident, travel, energy, marine, property and
casualty, as well as several specialized financial lines.
6. Reliance General Insurance Company Limited.
7. IFFCO Tokio General Insurance Co. Ltd
8. Export Credit Guarantee Corporation Ltd.
9. HDFC-Chubb General Insurance Co. Ltd.
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COMPANY PROFILE
RELIANCE LIFE INSURANCE
FOUNDER
Few men in history have made as dramatic a contribution to their countrys
economic fortunes as did the founder of Reliance, Sh. Dhirubhai H
Ambani. Fewer still have left behind a legacy that is more enduring and
timeless.
As with all great pioneers, there is more than one unique way of
describing the true genius of Dhirubhai: The corporate visionary, the
unmatched strategist, the proud patriot, the leader of men, the architect
of Indias capital markets, the champion of shareholder interest.
But the role Dhirubhai cherished most was perhaps that of Indias
greatest wealth creator. In one lifetime, he built, starting from the
proverbial scratch, India s largest private sector enterprise.
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.
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Dhirubhai is widely regarded as the father of Indias capital markets. In
1977, when Reliance Textile Industries Limited first went public, the
Indian stock market was a place 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 Dhirubhais extraordinary vision and leadership, Reliance
scripted one of the greatest growth stories in corporate history
anywhere in the world, and went on to become Indias largest private
sector enterprise.
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 worlds largest shareholder families.
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ABOUT RELIANCE
Reliance Life Insurance Company Limited is a part of Reliance Capital
Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is
one of Indias leading private sector financial services companies, and
ranks among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital has interests in asset
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.
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CORPORATE OBJECTIVE
At Reliance Life Insurance, we strongly believe that as life is different at
every stage, life insurance must offer flexibility and choice to go with that
stage. We are fully prepared and committed to guide you on insurance
products and services through our well-trained advisors, backed by
competent marketing and customer services, in the best possible way.
It is our aim to become one of the top private life insurance
companies in India and to become a cornerstone of RLI integrated
financial services business in India.
CORPORATE MISSION
To set the standard in helping our customers manage their financial
future.
BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BYRELIANCE LIFE INSURANCE
INSURANCE PLANS AVAILABLE
1. Products (Individual Plans)
Savings (Endowment)
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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
10. Reliance Term Plan
(formerly Raksha Shree)
Products (Group / Corporate Plans)
11. Risk (Protection)
http://www.reliancelife.co.in/products/ind_REP.asphttp://www.reliancelife.co.in/products/ind_RSEP.asphttp://www.reliancelife.co.in/products/ind_RCFP.asphttp://www.reliancelife.co.in/products/ind_RCP.asphttp://www.reliancelife.co.in/products/ind_RWLP.asphttp://www.reliancelife.co.in/products/ind_RGYP.asphttp://www.reliancelife.co.in/products/ind_RMRP.asphttp://www.reliancelife.co.in/products/ind_RTP.asphttp://www.reliancelife.co.in/products/ind_RTP.asphttp://www.reliancelife.co.in/products/ind_RTP.asphttp://www.reliancelife.co.in/products/ind_RTP.asphttp://www.reliancelife.co.in/products/ind_RMRP.asphttp://www.reliancelife.co.in/products/ind_RGYP.asphttp://www.reliancelife.co.in/products/ind_RWLP.asphttp://www.reliancelife.co.in/products/ind_RCP.asphttp://www.reliancelife.co.in/products/ind_RCFP.asphttp://www.reliancelife.co.in/products/ind_RSEP.asphttp://www.reliancelife.co.in/products/ind_REP.asp7/28/2019 Relaince - Anjali
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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
http://www.reliancelife.co.in/products/ebp_RCESP.asphttp://www.reliancelife.co.in/products/ebp_EDLI.asphttp://www.reliancelife.co.in/products/ebp_RCBP.asphttp://www.reliancelife.co.in/products/ebp_RCPP.asphttp://www.reliancelife.co.in/products/ebp_RCPP.asphttp://www.reliancelife.co.in/products/ebp_RCBP.asphttp://www.reliancelife.co.in/products/ebp_EDLI.asphttp://www.reliancelife.co.in/products/ebp_RCESP.asp7/28/2019 Relaince - Anjali
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PRODUCTS
Solutions for IndividualsTaking time out from your daily schedule to plan your future is anecessary task. You could do with some help, but who can help you?
Reliance Life Insurance is here with Solutions for Individuals, a seriesof plans that will help you make wise investments, protect your family,secure your childs f uture and even chalk out a plan for yourretirement.
So what are you waiting for? Invest in one of Reliance Solutions forIndividuals and pave the way for a worry-free life!
PlansProtection Plans
Protect your family even when youre not around by investing in RelianceProtection Plans. Choose a limited period plan or a lifetime protection plan
depending on your needs.. Read MoreSavings & Investment Plans
Reliance Savings & Investment Plans help you to set aside some money toachieve specific goals in life, which means that you can enjoy life and
provide for your familys daily needs... Read More
Retirement PlansInvest today in Reliance Retirement Plans and save money to enjoy lifeeven after retirement. You will never have to depend on another person or make any compromises to maintain your current lifestyle... Read More
Child PlansSave systematically and secure your childs future needs by investing inReliance Child Plans. You can always be there for your child when he or she needs you... Read More
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COMPARISION
NEW UNIT GAIN PLUS Vs LIC BIMA PLUS
FEATURES NEW UNIT GAIN PLUS
LIC BIMA PLUS
Age0-60 years 12-56 years
Term Choice rests with a minimum
period of payment of 3 years.
10 years
Sum Assured Minimum sum assured is 5
times the premium paid.
Maximum sum assured is as
per the limits set per age bands.
Maximum limit up to
Rs. 2 lakhs.
Survival BenefitValue of Fund at Bid Price Bid value of the fund units
along with maturity bonus at
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5% of the Sum Assured.
Death Benefit
Higher the Sum Assured or
value of units. However, the
value of units will treat as
death benefit if the Life
Assured is > 7 years or < 70
years.
Death during the 1 st 6 months-
30% of SA + value of units,
next 6 months 60% of SA +
value of units. Death after 1 st
year-SA +value of units. Death
during the 10 th year- 105% of
SA + value of units.
Withdrawal Benefit
Partial or complete
withdrawals at bid price
after3 rd year.
Premature withdrawal allowed
1 year(after applying bid-offer
spread).
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Contribution Minimum: Rs. 15,000 p.a Not specified.
Flexibility to
increase/decrease
contribution
Only an increase in
contribution is allowed.
Not available.
Investment optionsEquity Fund, Debt Fund,
Balanced Fund, Cash Fund.
Balanced, Secured & Risk.
Increase/Decrease
of death benefit
Available. Not available.
Bonus Points Not Available. Not available.
Top-upAvailable. Available (charges: 1.5% of
the top-up).
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Switch 3 free switches every policy
year. Subsequent switches
would be charged @1% of
switch amount or Rs. 100
whichever is higher.
No free switches. Cost of
switches is 2% of the fund
value.
Surrender ValueA selling/purchase price
spread of 5% will be
applicable from the 3 rd year
onwards.
Partial surrender up to 50%
of bid value of units allowed
after 3 years from the date of
commencement.
Automatic Cover
Continuance
Available after the 3 rd policy
year.
Not available.
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Initial charge
Charges :
1st Year- 24% ; 2 nd Year-3%
3rd Year- 3%. No charges
grom 4 th year onwards.
Not disclosed
Admin charges Annual admin. Charges of
1.25% of net assets.
Other charges Transaction charge of
0.5% of the equity
investment & 0.1% of
the debt investments.
Not applicable.
Bid-offer spread The bid-offer spread is
5% of the offer price.
Not applicable.
Fund management
Charge
Annual investment charge of
1% p.a. of net assets. 1% of the fund per annum
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Riders
ABR/ ADBR / CI/Hospital
Cash Benefits.
In Built Accident Benefit.
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CHILD CARE Vs SMART KID (ICICI Pru.
FEATURESCHILD CARE SMART KID
Plan Type Anticipated Endowment. Anticipated Endowment.
Min Max Term Matures when the child reaches th
age of 21 or 24. Premium paid till
child reaches age 18.
Matures between 22-25 years of
child. Term is 10-25 tears.
Min Max Age
of Child
1-13 Years. 0-12 Years.
Min Max Age
of Parent
20-50 Years. 20-60 Years.
Payment
Modes
All regular premiums. All regular premiums.
Life Assured Parent.
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Child is insured. But premium
waiver rider available for
parent.
BeneficiaryChild
Child.
Flexibility in
benefit
structure
2 structures :
1. Money is paid on the 18 th,
19 th, 20 th and 21 st year
(20%+25%+25%+35%)
2. Money is paid on the 18th
,
20 th, 22nd or 24 th year
(25%+25%+25%+40%)
2 structures :
1. When the child reaches the
criteria milestones ( Xth,
XIIth, Graduation, Post
Grad.)
2. Last 4 year before
maturity.
Benefit-Death
of Parent
None if premium waiver rider is no
purchased.
SA is paid up front. Child gets
Guaranteed payments as
chosen earlier.All future
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premiums are waived off.
Benefit- Death
of Child
< 7 years Premiums
refunded without
interest >7 years & 18 years
Outstanding payments as a lump su
Policy continues as it is.
Bonus &
Additions
Not guaranteed. Paid after the end
the premium paying term.
3.5% of SA compounded
annually for the1 st 4 years,
annual bonuses declared
thereafter.
Riders
available
Family Income Rider/ Premium
Waiver Rider.
ADBR / IBR
Surrender
Value
Available after 3 premium paying
years.
Available after 3 premium
paying years.
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CHILD CARE Vs HDFC CHILD PLAN
FEATURES CHILD CAREHDFC CHILD PLAN
Plan Type Anticipated Endowment.
Endowment.
Min Max
Term
Matures when the child reaches
age of 21 or 24 Premium paid
child reaches age 18.
10-25 Years.
Min Max
Age of Child
0-13 Years.
Min Max
Age of
Parent
20-50 Years. 18-60 Years.
Payment All regular premiums. All regular premiums.
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Modes
Life AssuredChild is insured. But premium
waiver rider available for
parent.
Parent.
BeneficiaryChild.
Child.
Flexibility in
benefit
structure
2 structures :
1. Money is paid on the 18 th, 19 th,
20 th and 21 st year
(20%+25%+25%+35%)
2. Money is paid on the 18 th, 20 th,
22nd or 24 th year
(25%+25%+25%+40%).
The customer has to choose
amongst 3 separate plans,
with deferring premiums
based on the plans.
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Benefit-
Death of
Parent
None if premium waiver rider is not purchase Opt for either one of
the plans:
1. SA+ Bonuses
paid upfront
2. SA +
Bonuses paid
on maturity.
3. SA paid on
death & SA +
Bonuses paid
on maturity.
Benefit-
Death of
Child
< 7 years Premiums refunded
without interest >7 years & 18 years Outstandin
payments as a lump sum
Policy continues as it
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Bonus &
Additions
Not Guaranteed. Paid after the end of the
premium Paying term.
Simple
Reversionary
Bonuses paid till
maturity.
Riders
available
Family Income Rider/ Premium Waiver Ride None.
Surrender
Value
Available after 3 premium paying years. Available.
CHILD CARE Vs OM KOTAK CHILD ADVANTAGE
FEATURES CHILD CAREOM KOTAK CHILD
ADVANTAGE
Plan Type Anticipated Endowment.
Endowment.
Min Max Matures when the child reaches the age o 10-30 Years.
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Term or 24. Premium paid till child reaches
18.
Min Max
Age of Child
1-13 Years. 0-17 Years.
Min Max
Age of Parent
20-50 Years. -
Payment
Modes
All regular premiums. All regular premiums.
Life AssuredChild is insured. But premium waiver
rider available for parent.
Parent.
Beneficiary Child Child.
Flexibility in
benefit
structure
2 structures :
1. Money is paid on the 18 th, 19 th, 20 th
and 21 st year (20%+25%+25%+35%)
One structure only.
Lump sum payment
made on maturity
which consists of SA
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2. Money is paid on the 18 t , 20 t , 22n or
24 th year (25%+25%+25%+40%).
or accumulated
bonuses, whichever is
higher.
Benefit-
Death of
Parent
None if premium waiver rider is not
purchased.
If the child is 18(then
Sa or Accumulation
paid, whichever is
higher. Else total
premium or SV is paid
whichever is higher).
Benefit-
Death of
Child
< 7 years Premiums
refunded without interest >7
years &
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Years SA + Bonus > 18 years
Outstanding payments as a lump sum
Bonus &
Additions
Not guaranteed. Paid after the end of
premium paying term. Not guaranteed.
Riders
available
Family Income Rider/ Premium Waiver
Rider.
ADBR, WOP.
Surrender
Value
Available after 3 premium paying years. Available.
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CHILD CARE Vs TATA AIG EDUCARE (18 YEARS)
FEATURESSMART KID TATA AIG EDUCARE
Plan Type Anticipated Endowment.
Regular premium
endowment plan-
Positioned as a Child
Plan.
Min Max
Term
Matures when the child reaches the
Age of 21 or 24. Premium paid till
Child reaches age 18.
Matures when the child is
18 years of age.
Min Max
Age of Child
0-13 Years. 30 days to 8 years of age.
Min Max
Age of
Parent
20-50 Years. Not applicable.
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Payment
Modes
All regular premiums. All.
Life Assured
Child is insured. But premium
waiver rider available for
parent.
Child- till the child
reaches the age 18 , the
parent will be the
policyholder. At 18, the
policy will be transferred
in the childs name.
Beneficiary Child Child.
Flexibility in
benefit
structure
2 structures :
1. Money is paid on the 18 th, 19th,
20th and 21st
year
20%+25%+25%+35%)
2. Money is paid on the 18 th, 20 th, 2
or
24 th year (25%+25%+25%+40%)
Single payment structure.
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Benefit-
Death of
Parent
None if premium waiver rider is
purchased.
Policy lapses in case payer
benefit rider is not opted
for.
Benefit-
Death of
Child
< 7 years Premiums
refunded without
interest >7 years & 18 years
Outstanding payments as a lump su
The proceeds are paid to
the parent.
Bonus &
Additions
Not guaranteed. Paid after the
End of the premium paying term.
Guaranteed 10% of SA
paid at maturity or death
provided the policy has
been in force for 10 years.
Plus a guaranteed
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education benefit of 20%
of the SA paid at the
maturity.
Riders
available
Family Income Rider/ Premi
Waiver Rider.
Payor Benefit Rider-
premium waiver.
Surrender
Value
Available after 3 premium paying
years.
30% of the premiums
paid(excluding the 1 st
premium & extra premium
, if any) provided 3 annual
premiums have been paid
in full.
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OBJECTIVE
Working of the unit-linked plans.
Comparative analysis of the life insurance products available in the
market.
Research methodology used : Primary data collected by visiting the
leading life insurance companies like LIC, ICICI Prudential, Aviva,
Birla Sun Life Insurance, HDFC Standard Life, Tata AIG Educare,
OM KOTAK Mahindra.
Data Collection:
(a) Questionnaires filled by various income groups.
(b) Internet (by searching about the investment plans of other
companies).
Action plan:
(a) Firstly, collecting information from newspapers & magazines
like Economic Times, Financial Express, Business India, The
Times Of India, Internet.
(b) Secondly, getting the questionnaires filled (about 50) to find out
which company they prefer for life insurance policies, what are the
specific features of their policies, whether they treat insurance as
an investment option or a security option.
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Finally, analyzing the data collected and comparing the insurance
companies to show the market credibility of BAJAJ Allianz among other
private life insurance companies.
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SOURCES OF DATA
PRIMARY DATA
Questionnaires.
In depth interviews with the agents and managers of private life
insurance companies.
SECONDARY SOURCES
Newspapers.
Magazines.
Internet sites.
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DATA COLLECTION
PRIMARY DATA
The primary data are those data which are collected afresh and for the first
time and happen to be original in character. The primary data to be
collected for the study are-
By Structured Questionnaire (Customer)
SECONDARY DATA
Secondary data are those data which have already been collected by
someone else and which already had been passed through the statically
process. The secondary data to be collected for the study are-
Publication of the company
Periodical of the company
By Internet Websites
RESEARCH INSTRUMENT
STRUCTURED QUESTIONNAIRE:
A Questionnaire consist of a number of questions printed or typed and a
definite order on a form or set of forms. It is the set of questions presented
to the retailers for their answers. When the questions have only two
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alternatives or of multiple choice, then it is known as closed-end
questionnaire, which is hence used the given study.
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SAMPLE AND SAMPLE SIZE:
In project I choose a finite population that is I chose a fixed number of
elements (persons) so that it is possible to enumerate it in its totality. For
instance, the population of the MEERUT region.
From that population I made a sampling frame which consists of a list
of items from which the sample is to be drawn. For instance, I choose that
portion from the population those who having good contacts.
From that sampling framework I choose my sample size. I choose 150
people as the size of the sample. From these sample size more than 140
people was responded. Following depicts all these analysis
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The all notation stands for:
1. Implies response,
2. Implies sample.
3. Implies sampling frame.
4. Implies population.
The gap between the response and sample is known as response error.
The gap between the sample and sampling frame is known-as chance error.
The gap between the sampling frame and population is known as frame
error.
DATA COLLECTION METHOD:
I have used my own database which consisted of student , shop
keepers etc, Serviceman, retired person from reputed organization etc.
After having all these I used to analyze the profile of those person
and go forward to meet them individual. In my case what I had
proceed on
behalf of the company, the list of given data base exhibit the following
two aspects:
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FINDINGS AND ANALYSIS
There were about 10 questions in the questionnaire on the basis of which
the findings were done and the analysis was made. The responses to the
questions in the questionnaire are presented in the form of statistical tools
such as pie charts and bar charts. There were 50 people being interviewed
from different income groups and age groups.
1. Do you have a life insurance policy? If yes, then of which
company/companies?
72%
28%
PEOPLE HAVING INSURANCE POLICIES
Yes
No
28%
33%
8%
17%
3%5%
6%
0%
% OF INSURED POPULATION IN VARIOUSCOMPANIES
Bajaj Allianz
LIC
Max Newyork
ICICI Pru
TATA AIG
Birla sun life
AVIVA
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Out of the 50 insurable people interviewed nearly 72% people have taken
insurance policy. Out of this population being interviewed nearly 32 % had
LIC policy, 28 % had Reliance Life, followed by ICICI Pru. (17 %), Max
New York Life (8 %) , TATA AIG(3%), Birla Sun Life (6%), Aviva and
HDFC having 6% shares each in the interviewed population.
2. Do you see insurance policies as an investment alternative or a
security option?
22%
78%
PURPOSE OF INSURANCE
Investment Alternative
Security Option
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Out of the 50 people interviewed 78 % people term/see insurance policy as
a security option while only 22 % see it as an investment option.
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3.Please rank the following as per your preference to investment in
a financial year:
Out of 50 being interviewed, 18 people invest in life insurance policies, 16
people invest in shares, 12 people invest in mutual funds and 4 people
invest in government bonds.
02
468
101214161820
Shares Mutual Funds Life insurance Government Bonds
( N o .
o f p e o p
l e )
(Investment alternatives)
INVESTMENT PREFERENCES IN VARIOUS ALTERNATIVES
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4.What is your criteria/criterion to select a particular insurance
company and a scheme?
Out of 50 people being interviewed, 15 people select an insurance
company on the criterion of security, 5 people select an insurance
company on the criterion of time span, 2 people select an insurance
company on the criterion of market share, 8 people select an insurance
company on the basis of return and 20 people select an insurance
company on the basis of all the above mentioned reasons.
0
5
10
15
20
Security Time span Market share Return All of theabove
15
5
2
8
20
CRITERIA FOR SELECTING AN INSURANCECOMPANY
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5. Rank the life insurance companies in the your order of
preference :
Out of 50 people interviewed, 46% had Reliance Life as their first
preference for a pvt. Life insurance company followed by ICICI
Prudential having 24 % preference followed by HDFC Life insurance
having 16% market share and lastly Max New York Life Insurnce .
46%
24%
14%16%
FIRST PREFERENCE OF PEOPLE AMONG PVT. LIFE INSURANCE COMPANIES
BAJAJ Allianz
ICICI Prudential
Max Newyork
HDFC
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6. Do you think that private life insurance companies are as safe as
LIC for taking a policy?
Out of 50 people being interviewed, 62 % of people do not find
private life insurance companies to be safe for buying a life insurance
policy whereas 38 % people find them safe for buying a life insurance
policy from a private life insurance company.
Yes38%
No62%
PERCEPTION OF PEOPLE ABOUT SAFETYNESS : LIC Vs PVT. LIFEINSURANCE COMPANIES
Yes No
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7. Reliance Life is quite a famous company because:
Out of 50 people interviewed, 16 % people perceive policies of
Reliance Life make it a famous company while 20% think it is due to
the parent companies, 24% take it as marketing and advertising
strategies which appeal to the mass population while 40 % think it is
all due to the above mentioned reasons that RELIANCE LIFE is a
famous company.
16%
20%
24%
40%
FAMOUSNESS REASONS OF BAJAJ ALLIANZ
POLICIES
PARENT COMPANIES
MKTG. AND ADV. STRATEGIES
All OF THE ABOVE
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8. Are you satisfied with your existing policy/policies?
Out of 50 interviewed, 69% of the people were satisfied with their life
insurance policies while only 31% of people were not satisfied.
Satisfied69%
Not satisfied31%
SATISFACTION LEVEL OF POLICY HOLDERS
Satisfied
Not satisfied
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ANALYSIS
Analysis of a research project is based on the primary data and
secondary data which is being collected from various sources to take
out some conclusions of the research study being taken. In my
project my purpose was to find the market credibility of Reliance
Life among various other private life insurance companies. For this
a population of 50 people was being interviewed having different
lifestyles, different incomes, different occupations yet the point
which was kept in mind was that this interviewed population was
insurable.
The questionnaire filled up by people revealed that nearly 36
people i.e. about 72% people have life insurance policies. This is
due to the fact that people now have started realizing that life is
very uncertain and it is advisable to have a life insurance policy.
Nearly, 24 % people had LIC policy and 20% people have
Reliance Life as their life insurance policy. The reason that people
have more LIC policy is that it is an old company for life insurance
and secondly it is a government controlled organization. Secondly,
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when enquired about the perception of people about insurance
policies, nearly 39 people i.e. about 78% people see it as a security
option for their families financially so that if they are not alive
some day, their family does not go in vain. While 11 people i.e.
about 22% people see it an investment option to save taxes and get
returns. Thirdly, when asked about their investments in various
alternatives, 18 people gave life insurance policies their first
preference for investment whereas 16 gave shares as their first
preference followed by mutual funds (12) and lastly government
bonds. This clearly shows that people are risk averse to a large
extent as largest numbers of people like to invest in life insurance
policies to make sure that there is security. Fourthly, when they
were asked about the criterion of choosing a life insurance
company 15 people replied that they see the security point of view
to buy a life insurance company. 5 people chose time span as the
criteria to choose a life insurance company. 2 people chose the
market share of the company as the preferred criteria of choosing
the life insurance company. 8 people chose the returns of life
insurance companies as the criteria for choosing a life insurance
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company. Nearly, 20 people chose all the above mentioned reasons
to choose a life insurance company.
When the sample population was interviewed about their 1 st
preference among the pvt. Players, nearly 46 % people chose
Reliance Life as the 1 st insurance company, 24 % people chose
ICICI Prudential as the 1st
preference, and 16 % chose HDFC as
the 1 st insurance company and 14 % people chose Birla Sun life as
the 1 st preferred company. When sample size was asked about
safety ness of an insurance policy as compared to LIC policy
nearly 62 % people replied that they do not find private life
insurance companies as safe as LIC, this is due to the fact that LIC
had monopoly into life insurance till 2000. Only after 2000, private
companies have come in the field of Life Insurance Company.
Proceeding further, when sample population was asked to
recognize the punch line of Reliance Life nearly 60 % of the
population was able to recognize the punch line of Reliance Life
which clearly indicates that Reliance Life is a well known life
insurance company among the people. Followed by it, when
sample size was interviewed about the reasons of famousness of
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Reliance Life 16 % of people chose its policies as the reason for its
famousness, 20% people chose its parent companies as the reason
for its popularity, 24 % agreed for its marketing and advertising
strategies to be the prime cause of its popularity among masses.
Whereas 40 % population agreed to all of the above mentioned
reasons to be causes of the popularity of Reliance Life. When
asked about the satisfaction with the existing insurance policies
nearly 69% people said that they are satisfied with their policy
whereas only 31% people were not satisfied with their policy.
They wanted the additional features of transparency about the
returns after when they have stopped paying the premiums. Also
they wanted higher rate of returns at the end of payment of
premiums.
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DIFFICULTIES FACED
Following were the difficulties faced during the completion of
project:
Non filling up of certain questions of the questionnaire which led to
the cancellation of that particular questionnaire.
Non understanding of certain parameters in the questionnaire.
Taking a sample size of 50 people does not reflect the mindset of all
kinds of people from different backgrounds, different age groups
and income groups.
Again research study of 2 months is a time constraint and covering
whole of Delhi population by taking a sample size of 50 is not
feasible.
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FUTURE GROWTH & SUGGESTIONS
RELIANCE LIFE, in the present scenario is growing at an aggressive
pace. The company does a lot of survey & analysis in the market to
discover customers needs & expectations & tries to improvise on its
existing market linked plans along with insurance policies. In addition to
this , the company from time to time keeps on introducing various new
policies & tailor made plans exclusively to cater peoples financial needs.
This has enabled Reliance Life to become market leader in the sector of
insurance & investment companies since 2001 when it came into
existence.
Since, now many other companies are joining the field of insurance &
investments, it will be necessary for Reliance Life to vigorously pursue &
update its survey & analysis policy to remain market leader.
Simultaneously, it should discover & rediscover its strength by introducing
new plans better suited to the people at large. India is a very big market &
it can provide sustenance to all the companies in the field of insurance &
investments but to remain one of the leading companies, Reliance Life has
to adopt new strategies earlier than others. This could include widening the
distribution networks to all parts of the country & catering to every income
group. Furthermore, it can improvise on its advertisements & promotion
campaigns by becoming more appealing & making them touches the hearts
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of millions & billions of Indians who are the hot prospects. Lastly, the
students in the professional courses, apprentices, trainees may be good
targets to approach in times ahead.
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CONCLUSION
The research project titled as COMPARITIVE ANALYSIS OF
RELIANCE LIFE AMONG OTHER LIFE INSURANCE
COMPANIES enabled to understand the competition among the various
life insurance companies which have entered Indian market of life
insurance after 2000 when private life insurance companies were allowed
to enter the Life insurance sector in India. Reliance Life is one of the
companies in the private sector which are doing exceptionally good in this
sector due to their policies to which people find very attracting accordingto their needs. When people were interviewed about the first preference
among the private life insurance companies nearly 46% replied for
Reliance Life, this clearly indicates that Reliance Life is quite a household
name. The reasons for this are many like it is a company with very strong
brand names: BAJAJ Auto Limited which is the no. 1 Automotive
Manufacturer in India also Allianz AG is 3 rd largest life insurance
company in the world. The market share of Reliance Life also around 34%
among private life insurance companies which is quite high among private
life insurance companies. It is only second to LIC in the life insurance
sector.
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BIBLIOGRAPHY
Philip Kotlar, Marketing Management, New Delhi, Pearson
Education (P) Ltd., Indian Branch, 2004.
C.R. Kothari, research Methodology, New Delhi, New Age
International (P) Ltd.
WEBSITES
www.icicilife.com
www.lic.gov.in
www.hdfc.com
www.kotak.com
www.birlasunlife.com
www aviva com
http://www.lic.gov.in/http://www.lic.gov.in/http://www.hdfc.com/http://www.hdfc.com/http://www.kotak.com/http://www.kotak.com/http://www.birlasunlife.com/http://www.birlasunlife.com/http://www.aviva.com/http://www.aviva.com/http://www.aviva.com/http://www.birlasunlife.com/http://www.kotak.com/http://www.hdfc.com/http://www.lic.gov.in/