AK Project Report on Insurance

8/8/2019 AK Project Report on Insurance

1/86

1

COMPETITIVE STUDY OF RELIANCE LIFE INSURANCE

WITH

OTHER INSURERS

A training report submitted in partial fulfillment of the requirement for the degree of

MASTERS OF BUSINESS ADMINISTRATION

(2007-2009)

Submitted by:

Name of Student: Ashwani Kumar

MBA 2

Roll No.: 80503317011

Sri Sai College of Engg. & Tech. Badhani

(Pathankot)

Punjab Technical University, Jalandhar


2/86

2

ACKNOWLEDGEMENT

Heartful thanks to those who support me:-

It often happens that one is at loss of words. When one is really thankful and sincerely wants

to express one's feeling of gratitude towards others.

I am earnestly grateful to "Mr. Ranjeev Khajuria" (Branch Manager) Reliance Life

Insurance, for providing me an opportunity to undertake project work in their esteemed organisation

and practical training which will go long term in shaping my career.

I also express my deepest respect to "Mr. Puneet Sharma", H.O.D. Management,

S.S.C.E.T. Badhani, for his guiding and caring support and for giving a very patient hearing

whenever I needed and provided me a lot of practical training which helps us in future too. He

directly made a significantly contribution to emergence to this project report.

I am deeply indebted to all my faculty members of the institute for their valuable contribution

during academic session and guidance in preparation of this project report.

Finally it is efforts of my parents and esteemed friends and the almightily GOD, who have

been source of strength and confidence for me in the endeavour.


3/86

3

PREFACE

MBA is stepping stone to management career. In order to achieve practical, positive and

concrete results the theoretical knowledge must be supplemented with exposure to real environment.

Theoretical knowledge without practical knowledge is of little value. Theoretical studies in

classroom are not sufficient to understand the functioning of complex and large sized, organisation.

Therefore, it becomes necessary to undergo any project work. Practical supplements the theoretical

studies i.e. it covers what is left uncovered in classroom. It exposes a student to invaluable treasures

of experiences.

I took my project with Reliance Life Insurance. Project work is part of circulation which

helps us to co-relate our theoretical concepts with practical experiences. Accomplishment and

achievement of goals is the major aim of any organisation these goals are achieved by proper

planning.

The present study entitled Comparative study of Reliance Life Insurance with HDFC

Standard Life and ICICI Prudential, shows the basic difference between the product and services of

Reliance Life Insurance and other insurers.


4/86

4


5/86

5

Introduction

Insurance


6/86

6


7/86

7

INTRODUCTI ON TO INSURANCE

MEANING:-

The business of insurance is related to the protection of economic values of assets. Every asset

has a value. The asset would have been created through the efforts of the owner. The asset is

valuable to the owner, because he expects to get some benefit from it. It is a benefit because it

meet some of his needs. The benefit may be an income or in some other form.

Every asset is expected to last for a certain period of time during which it will provide the

benefit. After that, the benefit may not be available. The owner is aware of this and he can so

manage his affairs that by the end of the period, a substitute is made available.

A human being is an income generating asset. Ones income generating ability depends upon

ones skills, (manual, professional, problem solving, entrepreneurial, etc). These are the assets.

The value of the asset can be measured by considering the income that is generated by the person

concerned. The concept of human life values, provide scientific ways to determine the asset

value of human life and therefore, the amount of life insurance required.

BRIEF HISTORY OF INSURANCE

Insurance has been known to exist in some form or other since 3000 BC. The Chinese traders,

travelling treacherous river rapids would distribute their goods among several vessels, so that the

loss from any one vessel being lost, would be partial and shared, and not total. The Babylonian

traders would agree to pay additional sums to lenders, as the price for writing off the loans, in

case of the shipment being stolen. The inhabitants of Rhodes adopted the principle of generalaverage, whereby, if goods are shipped together, the owner would bear the losses in proportion,

if loss occurs, due to jettisoning during distress. (Captains of ships caught in storms, would throw

away some of the cargo to reduce the weight and restore balance. Such throwing away is called

jettisoning) the Greeks had started benevolent societies in the late 7th century AD, to take care of

the funeral and families of members who died. The friendly societies of England were similarly


8/86

8

constituted. The Great Fire of London in 1666, in which more than 13000 houses were lost, gave

a boost to insurance and the Fire Insurance company, called the Fire Office, was started in 1680.

The origin of insurance business as in vogue at present, is traced to the Lloyds Coffee House in

London. Traders, who used to gather in the Lloyds Coffee House in London, agreed to share the

losses to their goods while being carried by ships. The losses used to occur because of pirates

who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. In

India, insurance began in 1818 with life insurance being transacted by an English company, The

Oriental Life Insurance Co. Ltd. The first Indian insurance company was the Bombay Mutual

Assurance Society Ltd., formed in1870 in Mumbai. This was followed by the Bharat Insurance

Co. in 1896 in Delhi, the Empire of India in 1897 in Mumbai, the United India in Chennai, the

National, the National Indian and the Hindustan Co-operative in Kolkata.

Later were established the Co-operative Assurance in Lahore, the Bombay Life (Originally

called the Swadeshi Life), the Indian Mercantile, the New India and the Jupiter in Mumbai and

the Lakshmi in New Delhi. These were all Indian companies started as a result of the Swadeshi

Movement in the early 1900s. By the year 1956, when the Life Insurance business was

nationalized and the Life Insurance Corporation of India (LIC) was formed on 1 st Sept, 1956,

there were 170 companies and 75 provident fund societies transacting life insurance business in

India. After the amendments to the relevant laws in 1999, the L.I.C. did not have the exclusive

privilege of doing life insurance business in India. By 2008-09, eighteen new life insurers had

been registered as per following details:

Year: 2000-2001 : ( From 2nd April '2000 to 31st December'2001)

Insurance Industry in the year 2000-2001 had 16 new entrants, namely:

S.No. RegistrationNumber

Date ofReg.

Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.


9/86

9

3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited .

8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited

9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

10 117 06.08.2001 Metlife India Insurance Company Ltd.

11 133 04.09.2007 Future Generali India Life Insurance Company Limited

12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

Yr: 2001-2002 : ( From 1st Jan 2001 to Dec. 2002)

Insurance Industry in this year, so far has 2 new entrants; namely

S.No. Registration

Number

Date of

Reg.

Name of the Company

1 121 03.01.2002 AMP Sanmar Life Insurance Company Limited.

2 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.


10/86

10

Yr: 2003-2004 : ( From 1st Jan 2003 till Date)


S.No. Registration

Number

Date of

Reg.

Name of the Company

1 127 06.02.2004 Sahara India Insurance Company Ltd.

Yr: 2004-2005 :


S.No. Registration

Number

Date of

Reg.

Name of the Company

1 128 17.11.2005 Shriram Life Insurance Company Ltd.

Yr: 2008-2009 :


S.No. Registration

Number

Date of

Reg.

Name of the Company

1 138 27.06.2008 Aegon Religare Life Insurance Company Ltd.

2 140 27.06.2008 DLF Pramerica Life Insurance Company Ltd.


11/86

11

THE BUSINESS OF LIFE INSURANCE

Life insurance or life assurance is a contract between the policy owner and the insurer, where the

insurer agrees to pay a sum of money upon the occurrence of the insured individual's or

individuals' death or other event, such as terminal illness or critical illness. In return, the policy

owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals

or in lump sums. There may be designs in some countries where bills and death expenses plus

catering for after funeral expenses should be included in Policy Premium. In the United States,

the predominant form simply specifies a lump sum to be paid on the insured's demise.

As with most insurance policies, life insurance is a contract between the insurer and the policy

owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) if

an insured event occurs which is covered by the policy. To be a life policy the insured event

must be based upon life (or lives) of the people named in the policy.


12/86

12

Insured events that may be covered include:

y Serious illness

Life policies are legal contracts and the terms of the contract describe the limitations of theinsured events. Specific exclusions are often written into the contract to limit the liability of the

insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.

Life-based contracts tend to fall into two major categories:

y Protection policies - designed to provide a benefit in the event of specified event,typically a lump sum payment. A common form of this design is term insurance.

Investment policies - where the main objective is to facilitate the growth of capital by regular or

single premiums. Common forms (in the US anyway) are whole life, universal life and variable

life policies.

ADVANTAGES OF LIFE INSURANCE

Life insurance has no competition from any other business. Many people think that life insurance

is an investment or a means of saving this is not a correct view. A comparison with other forms

of savings will show that life insurance has the following advantages.

y In the event of death, the settlement is easy. The heirs can collect the money quicker,because of facilities of nomination and assignment.

y There is a certain amount of compulsion to go through the plan of savings. In otherforms, if one changes the original plan of savings there is no loss. In insurance, there is a loss.

y Creditors cannot claim the life insurance moneys. They can be protected againstattachments by courts.

y There are tax benefits, both in income tax and capital gains.y Marketability and liquidity are better. A life insurance is property and can be transferred

or mortgage. Loans can be raised against the policy.


13/86

13

y It is possible to protect a life insurance policy from being attached by the debtors. Thebeneficiaries interests will remain secure.

INSURANCE PLANS OFFERED BY INSURERS

Life insurance products are usually referred to as plans of insurance. These plans have two

basic elements. One is the Death Cover providing for the benefit being paid on the death of the

insured person within a specified period. The other is the Survival Capital providing for the

benefit being paid on survival of a specified period. The plans of insurance can be classified into

two categories as traditional and linked plans.

TRADITIONAL PLANS

1. WHOLE LIFE INSURANCE PLAN:- In this plan the sum assured becomes payable

only on death whenever it may occur and no payment is made on survival.

Whole life insurance provides for a level premium, and a cash value table included in the policy

guaranteed by the company. The primary advantages of whole life are guaranteed death benefits,

guaranteed cash values, fixed and known annual premiums, and mortality and expense charges

will not reduce the cash value shown in the policy. The primary disadvantages of whole life are

premium inflexibility, and the internal rate of return in the policy may not be competitive with

other savings alternatives. Riders are available that can allow one to increase the death benefit by

paying additional premium. The death benefit can also be increased through the use of policy

dividends. Dividends cannot be guaranteed and may be higher or lower than historical rates over

time. Premiums are much higher than term insurance in the short-term, but cumulative premiums

are roughly equal if policies are kept in force until average life expectancy.

Cash value can be accessed at any time through policy "loans". Since these loans decrease the

death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary

upon the death of the insured; the beneficiary receives the death benefit only. If the dividend

option: Paid up additions is elected, dividend cash values will purchase additional death benefit

which will increase the death benefit of the policy to the named beneficiary.


14/86

14

2. ENDOWMENT INSURANCE PLAN:- In this plan the sum assured is payable to the insuredperson or his heirs at the end of the policy period or on happening death, whichever is earlier.

Endowments are policies in which the cash value built up inside the policy, equals the death

benefit (face amount) at a certain age. The age this commences is known as the endowment age.

Endowments are considerably more expensive (in terms of annual premiums) than either whole

life or universal life because the premium paying period is shortened and the endowment date is

earlier.

Endowment Insurance is paid out whether the insured lives or dies, after a specific period (e.g.

15 years) or a specific age (e.g. 65).

3. TERM ASSURANCE PLAN:- In this plan at the end of the policy period the premium paid tillthen are refunded but the risk cover continues indefinitely thereafter.

4. JOINT LIFE POLICY:- In these policies two or more lives can be covered under one policy.Such policies usually cover married couples or partners. The sum assured is paid on the death of

any of the insure persons during the term or at the end of the term. Some plans also provide

payment of sum assured on the death of one life and policy is continued to cover the second life

till maturity, without payment of further premium.

5. CHILDREN PLAN:- These plans insures the lives of children who are minor. The proposal is to be made by parent or a guardian. In such plans the risk cover commences after attaining a

specified age. In case, a child dies before risk cover commences, only the premium paid till then

will be refunded.

6. PENSION PLAN:- Pensions are a form of life assurance. However, whilst basic life assurance,permanent health insurance and non-pensions annuity business includes an amount ofmortality

ormorbidity riskfor the insurer, for pensions there is a longevity risk.

A pension fund will be built up throughout a person's working life. When the person retires, the

pension will become in payment, and at some stage the pensioner will buy an annuity contract,

which will guarantee a certain pay-out each month until death

7. GROUP INSURANCE PLAN:- Group insurance is a plan of insurance, which provides cover tolarge number of individuals under a single policy called the Master Policy. The individual

covered under the master policy is not party to the contract. The contract will be between the


15/86

15

insurer and a body that represents the group of individuals covered. The body may be the

employer.

Group life insurance is term insurance covering a group of people, usually employees of a

company or members of a union or association. Individual proof of insurability is not normally a

consideration in the underwriting. Rather, the underwriter considers the size and turnover of the

group, and the financial strength of the group. Contract provisions will attempt to exclude the

possibility of adverse selection. Group life insurance often has a provision that a member exiting

the group has the right to buy individual insurance coverage.


16/86

16

LINKED PLANS

As people see how investments in the capital market have grown over the last few years, they

prefer to use their funds in ways that help them to participate in the boom in the capital

market. Insurers have develop plans that combine the benefits of life insurance as well as

giving various options of participating in the growth of the capital market. Such plans are

called Linked Life Insurance or Unit Linked Insurance Plans (ULIPS). A ULIP is a life

insurance policy which provides a combination of life insurance protection and investment.

In the case of a ULIP, proposer offers to pay a certain sum towards premium. The term of

policy is also specified and should not be less than five years. The premium may be paid as

single premium or periodical over the term. ULIP provides for life insurance where the

policy value at any time varies according to the value of the underlying assets at the time.

ULIP is life insurance solution that provides for the benefits of protection and flexibility in

investment. The investment is denoted as units and is represented by the value that it has

attained called asNet Asset Value (NAV).ULIP came into play in the 1960s and is popular in

many countries in the world. The reason that is attributed to the wide spread popularity of

ULIP is because of the transparency and the flexibility which it offers. As times progressed

the plans were also successfully mapped along with life insurance need to retirement

planning. In today's times, ULIP provides solutions for insurance planning, financial needs,

financial planning for childrens marriage planning also can be done with this.

ULIP V/S TRADITIONAL INSURANCE

Broadly, insurance plans can be distinctly divided into ULIP (Unit Linked Insurance Plans) and

traditional plans. A brief detail of both segments:

Unit Linked Insurance Product

ULIPs have gained high acceptance due to attractive features they offer. These include:

1. Flexibility1. Flexibility to choose Sum Assured.2. Flexibility to choose premium amount.


17/86

17

3. Option to change level of Premium /Sum Assured even after the plan has started.4. Flexibility to change asset allocation by switching between funds.

2. Transparency1. Charges in the plan & net amount invested are known to the customer.2. Convenience of tracking ones investment performance on a daily basis.

3. Liquidity1. Option to withdraw money after few years (comfort required in case of exigency).2. Low minimum tenure.3. Partial / Systematic withdrawal allowed

4. Fund Options1. A choice of funds (ranging from equity, debt, cash or a combination).2. Option to choose your fund mix based on desired asset allocation.

Traditional Plans

These are the oldest types of plans available. These plans cater to customers with a low risk

appetite. Some of the common features of traditional plans are:

1. Steady Investment1.

Major chunk of investible funds are in debt instruments.

2. Steady and almost assured returns over the long term.2. Features

1. Death benefit is Sum Assured + guaranteed & vested bonus.2. Helps in asset creation as they are for a long tenure.3. Premium to Sum Assured ratios are fixed for each plan and age.4. Generally withdrawals are not allowed before maturity.


18/86

18

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

MISSION OF IRDA:-

To protect the interests of the policy holders, to regulate, promote and ensure

orderly of the insurance industry and for matters connected therewith or incidental

thereto"

Composition of Authority under IRDA Act, 1999 As per the section 4 of IRDA

Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was

constituted by an act of parliament) specify the composition of Authority

The Authority is a ten-member team consisting of

A Chairman; Five whole-time members; Four part-time members,(All appointed by the Government of India)

DUTIES, POWERS AND FUNCTIONS OF IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions 0f IRDA.

1. Subject to the provisions of this Act and any other law for the time being in force, theAuthority shall have the duty to regulate, promote and ensure orderly growth of the insurance

business and re-insurance business.

2. Without prejudice to the generality of the provisions contained in sub section .the powers andfunctions of the Authority shall include, Issue to the applicant a certificate of registration, renew,

modify, withdraw, suspend or cancel such registration Protection of the interests of the policy

holders in matters concerning assigning of policy, nomination by policy holders, insurable

interest, settlement of insurance claim, surrender value of policy and other terms and conditions

of contracts of insurance Specifying requisite qualifications, code of conduct and practical

training for intermediary or insurance intermediaries and agents;

1) Specifying the code of conduct for surveyors and loss assessors;2) Promoting efficiency in the conduct of insurance business;3) Promoting and regulating professional organizations connected with the insurance and re-insurance business;

4) Levying fees and other charges for carrying out the purposes of this Act;


19/86

19

5) .Calling for information from, undertaking inspection of, conducting enquiries andinvestigations including audit of the .insurers, intermediaries, insurance intermediaries and other

organizations connected with the insurance business;

6) Control and regulation of the rates, advantages, terms and conditions that may. be offered byinsurers in respect of general insurance business not so controlled and regulated by the Tariff

Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);

7) Specifying the form and manner in which books of account shall be maintained and statementof accounts shall be rendered by insurers and other insurance intermediaries;

8) Regulating investment of funds by insurance companies; 0) Regulating maintenance ofmargin of solvency;

9) Adjudication of disputes between insurers and intermediaries or insurance intermediaries;10)Supervising the functioning of the Tariff Advisory Committee;11)Specifying the percentage of premium income of the insurer to finance schemes forpromoting and regulating professional organizations referred to in clause .

INSURANCE REGULATORY & DEVELOPMENT AUTHORITY, NEW DELHI

In exercise of the powers conferred by section 114A of the Insurance Act, 1938, sections

14 and 26 of the Insurance Regulatory and Development Authority Act, 1999, the Authority, in

consultation with the Insurance Advisory Committee, . hereby makes the following regulations,

namely:

Short title and commencement:

1. These regulations may be called the Insurance Regulatory and DevelopmentAuthority (General Insurance - Reinsurance) Regulations, 2000.

2. They shall come into force on the date of their notification in the OfficialGazette.

Definitions:

In these regulations, unless the context otherwise requires:

a) 'Act' means the Insurance Regulatory and Development Authority Act 1999 (41 of 1999);b) 'Authority' -means the Insurance Regulatory and Development Authority establishedunder sub-section (1) of Section 3 of the Act;


20/86

20

c) 'Cession' means the unit of insurance passed to a !ensure by the insurer which issued apolicy to the original insured and, accordingly, a cession may be the whole or a portion of single

risks, defined policies or defined divisions of business, as agreed in the reinsurance contract;

d) 'Facultative' means the reinsurance of a part or all of a single policy in which cessionis negotiated separately and that the reinsure and the insurer have the " option of accepting or

declining each individual submission;

e) 'Indian re-insurer' means an insurer who carries on exclusively reinsurance business andis approved in this behalf by the Central Government;

f) 'Pool' means any joint underwriting operation of insurance or reinsurance in which theparticipants assume a predetermined and fixed interest in all business written.

g) 'Retrocession' means the transaction whereby a reinsure cedes to another insurer orreinsure all or part of the reinsurance it has previously assumed;

h) 'Retention' means the amount, which an insurer assumes for his own account. Inproportionate contra


21/86

21

MAJOR PLAYERS IN INSURANCE COMPANYS

1. Life insurance corporation of India

2. Reliance Life Insurance Company Ltd.

3. ICICI prudential life insurance company limited

4. Birla life insurance

5. Met life India insurance

6. HDFC Standard Life Insurance Company Ltd.

7. Max New York Life Insurance Company Ltd.

8. Bajaj Allianz Life Insurance Company Ltd.

9. SBI Life

10. TATA AIG

11. Aviva Life Insurance


22/86

22


23/86

23

Company Profile

Reliance ADA Group

Reliance Capital

Reliance Life Insurance


24/86

24

The Founder and the Inspiration

"Growth has no limit at Reliance. I keep revising my vision.

Only when you can dream it, you can do it."

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

countrys economic fortunes as did the founder of Reliance, Shri.

Dhirubhai H Ambani. Fewer still have left behind a legacy that is

more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the true genius of

Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of

men, the architect of Indias capital markets, the champion of shareholder interest.

But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one

lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise.

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 enterpriseinto a Rs 60,000 crore colossusan achievement which earned Reliance a place on the global

Fortune 500 list, the first ever Indian private company to do so.

Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance

Textile Industries Limited first went public, the Indian stock market was a place 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.


25/86

25

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.


26/86

26

ANIL DHIRUBHAI AMBANI- THE CHAIRMAN

Regarded as one of the foremost corporate leaders of contemporary India, Shri

Anil D Ambani, 48, is the chairman of all listed companies of the Reliance ADA

Group, namely, Reliance Communications, Reliance Capital, Reliance Energy and

Reliance Natural Resources.

He is also the president of the Dhirubhai Ambani Institute of Information and Communications

Technology, Gandhinagar

An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is credited

with pioneering several financial innovations in the Indian capital markets. He spearheaded thecountrys first forays into overseas capital markets with international public offerings of global

depositary receipts, convertibles and bonds.

Under his chairmanship, the constituent companies of the Reliance ADA group have raised

nearly US$ 3 billion from global financial markets in a period of less than 15 months.

Shri Ambani has been associated with a number of prestigious academic institutions in India and

abroad.

He is currently a member of :

y Wharton Board of Overseers, The Wharton School, USAy Board of Governors, Indian Institute of Management (IIM), Ahmedabady Board of Governors, Indian Institute of Technology (IIT), Kanpury Executive Board, Indian School of Business (ISB), Hyderabad

In June 2004, Shri Ambani was elected as an Independent member of the Rajya Sabha Upper

House, Parliament of India, a position he chose to resign voluntarily on March 25, 2006.

Select Awards and Achievements


27/86

27

y Voted the Businessman of the Year in a poll conducted by The Times of India TNS,December 2006

y Voted the Best role model among business leaders in the biannual Mood of the Nationpoll conducted by India Today magazine, August 2006

y Conferred the CEO of the Year 2004 in the Platts Global Energy Awardsy Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management

Association, October 2002

y Awarded the First Wharton Indian Alumni Award by the Wharton India EconomicForum (WIEF) in recognition of his contribution to the establishment of Reliance as a

global leader in many of its business areas, December 2001

y Selected by Asiaweek magazine for its list of 'Leaders of the Millennium in Business andFinance' and was introduced as the only 'new hero' in Business and Finance from India,

June 1999


28/86

28

THE RELIANCE A.D.A. GROUP

Reliance Capital

Reliance Capital is one of Indias leading and fastest growing private sector financial services

companies, and ranks among the top 3 private sector financial services and banking companies,

in terms of net worth.

The company has interests in asset management and mutual funds, life and general insurance,

private equity and proprietary investments, stock broking and other activities in financial

services.

Reliance Communications Limited

The flagship company of the Reliance ADA Group, Reliance Communications Limited, is the

realisation of our founders dream of bringing about a digital revolution that will provide every

Indian with affordable means of communication and a ready access to information.

The company began operations in 1999 and has over 50 million subscribers today. It offers a

complete range of integrated telecom services. These include mobile and fixed line telephony,

broadband, national and international long distance services, data services and a wide range of

value added services and applications aimed at enhancing the productivity of enterprises and

individuals.

Reliance Infrastructure Limited

Reliance Infrastructure Ltd is not only Indias largest private sector enterprise in power utility

but also the largest private sector player in many other infrastructure sectors of India. In the

power sector we are involved in generation, transmission, distribution and trading of electricity

and constructing power plants as EPC partners. In the infrastructure space the company is

focused on roads, Urban infrastructure which includes MRTS, Sealink and Airports, Specialty


29/86

29

Real Estate which includes business districts, trade towers, convention centre and SEZ which

includes IT & ITES SEZ and non IT SEZ as well as free trade zones.

Reliance Health

In a country where healthcare is fast becoming a booming industry, Reliance Health is a focused

healthcare services company enabling the provision of solution to Indians, at affordable prices.

The company aims at providing integrated health services that will compete with the best in the

world.It also plans to venture into diversified fields like Insurance Administration, Health care

Delivery and Integrated Health, Health Informatics and Information Management and Consumer

Health.

Reliance Health aims at revolutionising healthcare in India by enabling a healthcare environment

that is both affordable and accessable through partnerships with government and private

businesses.

Reliance Media & Entertainment

As part of the Reliance - ADA Group, Reliance Entertainment is spearheading the Groups foray

into the media and entertainment space. Reliance Entertainments core focus is to build

significant presence for Reliance in the Entertainment eco-system: across content and

distribution platforms.

The key content initiative are across Movies, Music, Sports, Gaming, Internet & mobile portals,

leading to direct opportunities in delivery across the emerging digital distribution platforms:

digital cinema, IPTV, DTH and Mobile TV.

Reliance ADA Group acquired Adlabs Films Limited in 2005, one of the largest entertainment

companies in India, which has interests in film processing, production, exhibition & digital

cinema.

Reliance Entertainment has made an entry into the FM Radio business through Adlabs Radio

www.big927fm.com Having won 45 stations in the recent bidding, BIG 92.7 FM is already


30/86

30

Indias largest private FM radio network with 12 radio stations across the country as on 28th

February 2007, with many more to be launched in the coming months.

CORPORATE SOCIAL RESPONSIBILITY

Organizations, like individuals, depend for their survival, sustenance and growth on the support

and goodwill of the communities of which they are an integral part, and must pay back this

generosity in every way they can...

This ethical standpoint, derived from the vision of our founder, lies at the heart of the CSR

philosophy of the Reliance ADA Group.

While we strongly believe that our primary obligation or duty as corporate entities is to ourshareholders we are just as mindful of the fact that this imperative does not exist in isolation; it

is part of a much larger compact which we have with our entire body of stakeholders: From

employees, customers and vendors to business partners, eco-system, local communities, and

society at large.

We evaluate and assess each critical business decision or choice from the point of view of

diverse stakeholder interest, driven by the need to minimize risk and to pro-actively address

long-term social, economic and environmental costs and concerns.

For us, being socially responsible is not an occasional act of charity or that one-time token

financial contribution to the local school, hospital or environmental NGO. It is an ongoing year-

round commitment, which is integrated into the very core of our business objectives and strategy.

Because we believe that there is no contradiction between doing well and doing right. Indeed,

doing right is a necessary condition for doing well.


31/86

31


32/86

32

RCL is registered as a depository participant with National Securities Depository Ltd

(NSDL) and Central Depository Services Ltd (CDSL) under the Securities and Exchange Board

of India (Depositories and Participants) Regulations, 1996. RCL has sponsored the Reliance

Mutual Fund within the framework of the Securities and Exchange Board of India (Mutual Fund)

Regulations, 1996.RCL primarily focuses on funding projects in the infrastructure sector andsupports the growth of its subsidiary companies, Reliance Capital Asset Management Limited,

Reliance Capital Trustee Co. Limited, Reliance General Insurance Company Limited and

Reliance Life Insurance Company Limited. As of March 31, 2005, the companys investment in

infrastructure projects stood at Rs. 1071 Crores. The investment portfolio of RCL is structured in

a way that realizes the highest post-tax return on its investments.

Board of Directors

y Amitabh Jhunjhunwala, Vice-Chairman

Shri Amitabhabh Jhunjhunwala, 51, 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.

y Rajendra Chitale, Independent Director

Shri Rajendra P. . Chitalale, 46, 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


33/86

33

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 served 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.

y Shri C. P. Jain

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

Ltd. (National Thermal Power Corporation). Shri Jain has an illustrious career

spanning over four decades of contribution in the fields of financial

management, general management, strategic 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 Experts on Empowerment of CPSEs'. He was Chairman of

Standing Conference of Public Enterprises (SCOPE) between April 2003 and March 2005. He is

a Director on the Board of IL & FS Infrastructure Development Corporation and, is also a

member of the Audit Advisory Board of the Comptroller and Audit General of India.


34/86

34

Regd Office:

H Block, 1st Floor,

Dhirubhai Ambani Knowledge City,

Navi Mumbai,

Maharashtra - 400710, India

Registered with the Insurance Regulatory and Development Authority (Registration No: 121) in

accordance with the provisions of the Insurance Act 1938.

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.Vision

Empowering everyone live their dreams.

Mission

Create unmatched value for everyone through dependable, effective, transparent and profitable

life insurance and pension plans.


35/86

35

Goal

Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below:

Emerge as transnational Life Insurer of global scale and standard

Create best value for Customers, Shareholders and all Stake holders

Achieve impeccable reputation and credentials through best business practices

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 of4.1% in the Financial Year 2007-08 from

3.9% in April 07 to 8% in Feb 08. ( Source: IRDA)

Also continues to be amongst the fast growing Private Life Insurance Companies with a

YOY growth of195% in new business premium as of Mar08.

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).

Leadership Team

BOARD OF DIRECTORS

Gautam Doshi, Director

Gautam is the Group Managing Director of Reliance Anil Dhirubhai Ambani Group and Director

of Reliance Life Insurance Company Limited.

In his long and illustrious career spanning 30 years, Gautam has held key positions in various

organisations such as M/s. Bansi S. Mehta, RSM & Co. and Ambit Corporate Finance Pvt. Ltd.


36/86

36

Presently, as a Board member of various reputed public limited companies, Gautam continues to

power the industry with his profound knowledge and expertise.

Gautam, a qualified Chartered Accountant, has served as the Chairman of the Institute of

Chartered Accountants of India for the year 198283. He was also elected to the Council of the

Institute of Chartered Accountants of India for two consecutive terms spanning over 1992 to

1998.

Satya Pal Talwar, Director

Satya Pal is the Director of Reliance Life Insurance Company Limited. He holds an experience

of more than 35 years in operations and policy formulation.

Through his distinguished service in the financial industry, Satya Pal has served as the

Chairman and Managing Director of renowned organisations such as Bank of Baroda, Union

Bank of India and Oriental Bank of Commerce. His in-depth knowledge of the sector has seen

him rise quickly into pivotal positions at advisory and board levels in Indian and as well Global

organisations such as SEBI, IDBI and MasterCard International. He has also held the coveted

position of Deputy Governor of RBI from 1994 to 2001.

Satya Pal holds a degree in Law. He is a Certified Associate of the Indian Institute of Bankers

and a member of the Indian Council of Arbitration.

Sam Ghosh, Group President

Sam is currently the Group President of Reliance Capital Limited.

Sam has worked in the UK for one of the leading Chartered Accountancy firms and then moved

to Australia to join a subsidiary of the Allianz Group where he held various senior positions in

the finance and international division. In his immediate past assignment, before joining Reliance

Capital Limited, Sam was responsible for the overall Allianz operations in India and Middle

East.

Sam is a qualified Chartered Accountant and is a member of the Institute of Chartered

Accountant in England & Wales and Australia.

P Nandagopal, Chief Executive Officer

P Nandagopal joined Reliance Life Insurance Company Limited as CEO on October 4, 2005

the day the share holdings of AMP Sanmar were transferred to Reliance Capital Group.


37/86

37

Nandagopals career in the financial services industry spans over two glorious decades. He

started his career with Andhra Bank followed by other reputed firms such as New India

Assurance and GIC Asset Management, where he expertly managed various assignments in

finance, underwriting, claims and mutual fund marketing. In 1999, he joined Birla Sun Life

Insurance as one of the founder-members, where he successfully managed the Alternate

Channels, Group Insurance and Pensions businesses.

Nandagopals passion for finance motivated him to write a book titled Investors Handbook.

Amazed by the simple lessons and tips the book offered, finance professionals promptly made

the book a bestseller! It is today a prescribed reference book for the AMFI exams.

P Nandagopal is an MBA Finance and Marketing. He is also an Associate Company Secretary

and a Fellow of the Insurance Institute of India.

Malay Ghosh Deputy Chief Executive Officer

Malay leads all Sales & Distribution activities at Reliance Life Insurance Company Limited. His

key focus is on rapid expansion of all channels and accelerating the companys growth

trajectory.

Malay has over 24 years of work experience in the insurance industry. He has worked for 17

years with LIC across various functions and for 7 years with Bajaj Allianz Life Insurance where

he was last designated Head of Sales.

Malay holds a Masters degree in statistics.

Maneesha Thakur, Chief Human Resources Officer

Maneesha in her role as the Chief Human Resource Officer at Reliance Life Insurance Company

Limited, has developed a performance driven and employee centric culture. She has been at the

forefront of the organization growth by facilitating talent acquisition and management.

Maneesha in her career span of 15 years has worked with companies like SHCIL, ALLTEL,

Transamerica, ICICI Bank and VSNL.

In addition to an MA in English Literature, Maneesha holds a Post Graduate Diploma in

Personnel Management & Industrial Relations from XLRI, Jamshedpur.

Rajesh Bahl, Sr VP -Legal & Chief Financial Officer

Rajesh, in the capacity of the Sr Vice President Legal & Chief Financial Officer, heads the

overall Finance and Accounts operations at Reliance Life Insurance.


38/86

38

Rajesh has 14 years of experience in the field of financial and strategic planning, business

controlling, audit and compliance. He began his career with AF Fergusson & Co. He moved on

to lend his financial expertise to world-renowned companies such as Ericsson, Pepsi,Modi

Xerox, and Tata AIG Life Insurance, where he was Chief Compliance Officer and Financial

Controller.

Rajesh is a Commerce graduate from Delhi University and a qualified Chartered Accountant

from the Institute of Chartered Accountants of India.

Pournima Gupte, Appointed Actuary

Pournima is the Appointed Actuary at Reliance Life Insurance Company Limited where she has

the overall responsibility for statutory reporting, risk appetite, pricing, valuation, reinsurance,

etc.

Prior to joining Reliance, Pournima served at Life Insurance Corporation of India for 20 long and

rewarding years. Her stint with LIC included a four-year deputation at the London branch, as

Manager. She then moved on to be the Chief Manager Actuarial, at Kotak Mahindra Life

Insurance Company and Associate Vice President Actuarial at Bajaj Allianz Life Insurance

Company.

Pournima is a graduate in Statistics and a Fellow of the Actuarial Society of India (FASI).

C Mohan, Chief Technology Officer

Mohan is the Chief Technology Officer (CTO) of Reliance Life Insurance Company Limited and

he is responsible for Information Technology Strategy Formulation and Deployment.

Mohan has over 11+ years of IT Experience of which he spend more than 7+ years Executive

Management Experience in overseas. He worked with Cathay Pacific Airways and Computer

Sciences Corporation in AsiaPacific Role at Singapore before he joined Reliance Life.

Mohan is an Engineering Graduate and holds many International IT Certification like

MCSE,CCNA,CNE,CBCP,PMP etc.

R Rangarajan, Chief Investment Officer

Rangarajan is the Chief Investment Officer at Reliance Life Insurance Company Limited. He

alongwith his team, strives to give the best possible returns on investments to shareholders and

policyholders, keeping in mind their appetite for risk. Rangarajan draws on his in-depth


39/86

39

knowledge of investment and experience of 25 years to ensure that the goals of the organisation

are metwithout any compromise on the benefits of the investors.

Prior to being a part of Reliance Life Insurance, Rangarajan worked with AMP Sanmar Life

Insurance as Head Investments for three years. His earlier assignment was with a large Mutual

Fund organization.

Rangarajan is a qualified Chartered Accountant.

S V Sunder Krishnan, Chief Risk Officer

Sunder is the Chief Risk officer for Reliance Life Insurance and is responsible for overseeing

Risk Management, Internal Audit and Compliance functions at Reliance Life Insurance.

Sunder came with 23 years of experience and knowledge in Internal Audits, Compliance,

Assurance Consulting and Risk Management. He has worked for various leading organizations

such as DSP Merrill Lynch, ING Vysya, Credit Lyonnais, Standard Chartered, Bank

International Indonesia, Ernst & Young and Delloitte at senior and middle management positions

with exposure to businesses and operations in more than 12 countries.

Sunder is a qualified FCA, CISA, and CCSA. He is also the President of Information Systems

Audit Control Association (ISACA-USA), Mumbai Chapter for the year 2007-08 and was a

member of the Board of Advisors to Bombay Chartered Accountants Society (BCAS) for

Internal Audit studies for the year 2005-06.

Saroj K Panigrahi, Company Secretary

Saroj K Panigrahi heads the Legal and Company Secretarial function of Reliance Life Insurance.

He is armed with twelve years of valuable experience in the Corporate Legal, Commercial,

Regulatory Compliance and Corporate Governance domains.

Prior to joining Reliance, he headed the Legal & IP department at Accentures India Outsourcing

Business. During his fulfilling tenure, he skilfully managed the Legal, Intellectual Property,

Regulatory Risk & Compliance aspects of several Fortune 500 companies. Prior to his

assignment with Accenture, Saroj was Company Secretary at ING Vysya Life Insurance and was

also associated with ICRA, an associate of Moodys Investors Inc.

Saroj holds a degree in Law. He is also a Fellow Company Secretary, a Chartered Secretary

(UK) and a Chartered Financial Analyst (CFA).


40/86

40

List of Products/ Riders available with Reliance Life Insurance Company

Financial

Year

Name of the Product/Rider In operation

From

(opening date)

To

(closing date)

Products

2001-02 Reliance-Cash Flow Plan 17-Jan-02

2001-02 Reliance-Special Endowment Plan 22-Feb-02

2001-02 Reliance-Child Plan 22-Feb-02

2001-02 Reliance-Whole Life Plan 22-Feb-02

2001-02 Reliance-Term Plan 22-Feb-02 31-May-03

2003-04 Reliance-Term Plan 31-May-03

2003-04 Reliance-Group Term Assurance 6-Jun-02

2003-04 Reliance-Simple Term Plan 21-Jan-03

2003-04 Reliance-Golden Years Plan 15-Feb-03 1-Jul-06

2003-04 Reliance-Group Defined Contribution Superannuation Plan 25-Sep-03 1-Jul-06

2003-04 Reliance-Group Defined Benefit Superannuation Plan 25-Sep-03 1-Jul-06

2003-04 Reliance-Group Gratuity Plan 30-Sep-03 1-Jul-06

2006-07 Reliance Group Gratuity Plan 22-Jan-07

2003-04 Reliance-Immediate Annuity 2-Oct-03

2003-04 Reliance-Credit Guardian Plan 10-Feb-04

2003-04 Reliance-Special Credit Guardian Plan 10-Feb-04

2003-04 Reliance-Special Term Plan 10-Feb-04

2004-05 Reliance-Market Return Plan 9-Jul-04 1-Jul-06

2006-07 Reliance Market Return Plan 7-Jul-06

2004-05 Reliance-Endowment Plan Single Premium 7-Feb-05

2004-05 Reliance-Endowment Plan Regular Premium 7-Feb-05


41/86

41

2006-07 Reliance Connect 2 Life Plan 21-Jun-06

2006-07 Reliance Golden Years Plan 4-Aug-06

2006-07 Reliance Group Superannuation Plan 1-Sep-06

2006-07 Reliance Golden Years Plan Plus 20-Oct-06

2006-07 Reliance Golden Years Plan Value 13-Nov-06

2006-07 Reliance Automatic Investment Plan 31-Jan-07

2006-07 Reliance Money Guarantee Plan 31-Jan-07

2007-08 Reliance Secure Child Plan 9-Oct-07

2007-08 Reliance Group Leave Encashment Plan 23-Oct-07

2007-08 Reliance Wealth + Health Plan 25-Jan-08

2007-08 Reliance Total Investment Plan Series I - Insurance 1-Mar-08

2007-08 Reliance Total Investment Plan Series II - Pension 1-Mar-08

2008-09 Reliance Super Invest Assure Plan 3-Jun-08

Riders

2001-02 Accidental death & Total and Permanent Disablement

Rider(Limited Premium)

7-Jan-02

2001-02 Accidental death & Total and Permanent Disablement

Rider

21-Jan-02

2002-03 Critical Conditions Rider 30-May-02

2002-03 Critical Conditions Rider (Limited Premium) 30-May-02

2002-03 Group Accidental Total and Permanent Disablement Rider 31-Jul-02

2002-03 Group Accidental or Sickness Total and Permanent

Disablement Rider

31-Aug-02

2002-03 Group Accidental Additional Death Benefit Rider 1-Mar-03

2002-03 Group Accidental Partial and Permanent Disablement Rider 1-Mar-03

2004-05 Term Life Insurance Benefit Rider 16-Mar-05

2007-08 Critical Conditions (25) Rider 25-Jan-08

2007-08 Major Surgical Benefit Rider 25-Jan-08

2007-08 Term Life with Accident Benefit Rider 28-Jan-08


42/86

42


43/86

43

COMPANY PROFILE

HDFC Standard Life

ICICI Prudential


44/86

44

Regd. Office:

HDFC Standard Life Insurance Company Ltd.

Ramon House.

169, Backbay Reclamation,

Mumbai 400020

HDFC Standard Life Insurance Company Ltd. is one of Indias leading 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 one of the subsidiaries of Standard Life plc, leading providers of

financial services in the United Kingdom. Both the promoters are well known for their ethical

dealings and financial strength and are thus committed to being a long-term player in the life

insurance industry all important factors to consider when choosing your insurer.

Track Record so far

Our cumulative premium income, including the first year premiums and renewal premiums is Rs.

1532.21 Crores Apr-Mar 2005 - 06.

We have covered over 1.6 million individuals out of which over 5,00,000 lives have been

covered through our group business tie-ups.


45/86

45

Reg. Off.:

ICICI Pru Life Towers,

1089 Appasaheb Marathe Marg,

Prabhadevi, Mumbai 400025.

Tel.: 40391600.

IRDA Regn. No. 105.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's

foremost financial services companies-and Prudential plc - a leading international financial

services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 42.72

billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

We began our operations in December 2000 after receiving approval from Insurance RegulatoryDevelopment Authority (IRDA). Today, our nation-wide team comprises of over 2000 branches

(inclusive of 1,074 micro-offices), over 274,500 advisors; and 20 bancassurance partners.

ICICI Prudential was the first life insurer in India to receive a National Insurer Financial

Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has

been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen

ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and

customer base, we continue to tirelessly uphold our commitment to deliver world-class financial

solutions to customers all over India.


46/86

46


47/86

47

Data analysis

&

Interpretation


48/86


49/86

49

1.Endowment Plan

Features Reliance Life HDFC Standard Life ICICI Pru

Plan Name Reliance

Endowment Plan

Endowment

Assurance Plan

Save n Protect

Minimum Entry Age 5 years 12 years 0 years

Maximum Entry Age 65 years 60 Years 60 years

Minimum Term 5 years 10 years 10 years

Maximum Term 35 years 30 years 30 years

Minimum SA 25000 50000

Maximum SA No limit 1 Crore


50/86

50

INTERPRETATION:-

The comparison of Endowment Plan is based upon Reliance Endowment Plan, Endowment

Assurance Plan of HDFC Standard Life Insurance and Save n Protect plan of ICICI Prudential.

The minimum entry age in ICICI Pru. Is lower i.e. 0 Years, whereas in Reliance It is 5 years and

in HDFC it is 12 Years. And the maximum age of Reliance Life is higher i.e. 65 years, whereas

in HDFC and ICICI it is 60 years.

Reliance life has more convenient term tenure i.e. 5 -35 years, whereas in HDFC and ICICI the

term tenure is 10-30 years.

Reliance lifes plans are more affordable as the plans starts from the lowest level of sum assured

i.e. Rs.25000/- and has no maximum limit. But in ICICI the minimum sum assured is Rs.50000/-

and maximum of 1 Crore only.

CONCLUSION:-

From the above interpretation we may conclude that The Reliance Endowment plan is better than

other companies as all the features of Reliance Life is better from others except the minimum

entry age where ICICI has the lowest limit.


51/86

51

2.Money Back PlanFeatures Reliance Life HDFC Standard Life ICICI Pru

Plan Name Reliance Cash Flow Money Back Plan Cash Bak

Minimum Entry Age 15 years 12 years 16 years




Minimum SA 25000 75000

Maximum SA No limit No limit

Money Back First return on 4th

years then every 3rd

year

Every 5th year Every 3rd for 15yrs

term

Every 4th year for

20 yrs term

Money Back Amount Equal %age for

every return,

Different return

%age for different

plans

10%, 15%, 20%,

25%


52/86


53/86

53

3.Whole Life Plan

Features Reliance Life ICICI Pru

Plan Name Reliance Whole Life

Plan

Life Guard

Level Term Assurance

Minimum Entry Age 20 years 18 years

Maximum Entry Age 60 years 55 years

Minimum Term 5 years 15 Years

Maximum Term 40 years 30 years

Minimum SA 25000

Maximum SA No limit


54/86

54

INTERPRETATION:-

The comparison of Whole Life Plan is based upon Reliance Whole Life Plan and Life Guard

Level Term Assurance plan of ICICI Pru.

The minimum entry age in ICICI Pru. Is lower i.e.18 Years, whereas in Reliance It is 20 years.

And the maximum age of Reliance Life is higher i.e. 60 years, whereas in ICICI it is 55 years.

Reliance life has more convenient term tenure i.e. 5 -40 years, whereas in ICICI the term tenure

is 15-30 years.

Reliance lifes plans are more affordable as the plans starts from the lowest level of sum assured

i.e. Rs.25000/- and has no maximum limit. But in ICICI the minimum sum assured is

CONCLUSION:-

From the above interpretation we may conclude that The Reliance Whole Life plan is better than

other companies as the Reliance Life is better from others on every ground except the minimum

entry age where ICICI has the lowest limit.


55/86

55

4.ULIP PlanFeatures Reliance Life HDFC Standard Life ICICI Pru

Plan Name Reliance Automatic

Investment Plan

Enhanced Life

Protection II

InvestShield Life

New

Minimum Entry Age 30 Days 18 years 0 years




Minimum Premium 10,000 12,000 12,000

S.A. ATP * 5 Times ATP * 5 times ATP * Term/2

Allocation Charges First year= 25%

2nd year onwards =

5%

35%, 35% & 2% for

first three years

respectively

35%, 15%, 3% for

first 3 years

respectively

Administration Charges 40/- Per Month 60/- Per Month 40/- Per Month

FMC 1.25% P.A 1.25% 1.25% P.A.

Free Switches 52 24


56/86

56

INTERPRETATION:-

The comparison of ULIP Plan is based upon Reliance Automatic Investment Plan, Enhanced

Life Protection II Plan of HDFC Standard Life Insurance and InvestShield Life New plan of

ICICI Prudential.

The minimum entry age in ICICI Pru. Is lower i.e. 0 Years, whereas in Reliance It is 30 days and

in HDFC it is 18 Years. And the maximum age of Reliance Life and ICICI is higher i.e. 65 years,

whereas in HDFC it is 45 years.

Reliance life has more convenient term tenure i.e. 5 -30 years, whereas in HDFC and ICICI the

term tenure is 10-30 years.

Reliance lifes plans are more affordable as the plans starts from the lowest level of annual

premium i.e. Rs.10000/-. But in ICICI and HDFC the minimum annual premium is Rs.12000/-.

Allocation charges of Reliance life is lowest i.e. 25% on 1 st year and 5% on subsequent

installments. Whereas these charges in HDFC are 35%, 35%, 2% for first three years

respectively. And in ICICI the charges are 35%, 15%, 3% for first 3 years respectively

The administration charges of Reliance life and ICICI Pru are same and lowest i.e. Rs.40/- per

month but in HDFC these charges are Rs.60/- per month.

All the companies have the same FMC i.e. 1.25% PA.

Reliance Life offers 52 free switches in a year which is highest in the industry. And ICICI offers

24 switches only.

CONCLUSION:-

From the above interpretation we may conclude that The Reliance Automatic Investment plan is

better than other companies as all the features of Reliance Life is better from others on every

ground.


57/86

57

Research Methodology


58/86

58

RESEARCH METHODOLOGY

It describes the data collection method, The study requires the data to be

collected from secondary source. The secondary data through the various

journals and newspapers.

DATA SOURCE:

(a) Secondary data: Secondary data collected by referring to various books,newspapers, magazines, journals, clips and internet (details in bibliography)

RESEARCH DESIGN

Present study enquired and brought forward the results concerning the set

objectives specified before which relates to description of the state of affairs as a

result it clearly states that it was a DESCRIPTIVE STUDY, which included fact

finding enquiries of different kinds.

LIMITATION OF THE STUDY

1. The information and experiences furnished by exiting employees may beinfluenced by personal biases.

2. Sometimes the exiting employee is reluctant to give a fair viewpoint oncertain issues or they find the issues too personal to share.

3. There were very few exits from certain departments and during analysis onlytheir individual views could be taken into account.

4. While providing suggestions and recommendations the dissatisfaction of theexiting employees on certain policies have been taken into account. The

suggestions and recommendations may not be valid because certain policies may

have been changed already.


59/86

59

SCOPE OF THE STUDY

1.There is a wide scope in insurance sector for providing high career growth and

sufficient earning for employees for economic developments, investments are

necessary . investments are made out of savings a life insurance company is a

major instruments for mobilization of savings of people , particularly from the

middle and lower income groups .these savings are channeled into investments

for economic growth. increasing globalization and competition, our analysis has

been extended to offer empirical evidence focusing on how national culture and

market conditions might influence the organizational. Insurance is a social

welfare business and to make interaction between different nature of people

and to increase the exposure of individual

OBJECTIVES OF THE STUDY

1) To study the concept of life insurance2) To know the customer awareness about life insurances3) To determine the competition in market.4) Comparison of Reliance Life Insurance with HDFC & ICICI.


60/86

60


61/86

61

Literature Review


62/86

62

LITERATURE REVIEW

Venkatachari Jagannathan

02 February 2006

Chennai: The Insurance Regulatory and Development Authority (IRDA) has approved the

change in the name of AMP Sanmar Life Insurance Company Limited to Reliance Life Insurance

Company Limited.

The change was necessitated after the acquisition of the holdings of AMP Australia and the

Sanmar group in AMP Sanmar by Reliance Capital for Anil Ambani's proposed life insurance

venture, now called Reliance Life Insurance for an undisclosed sum. Subsequently, a fresh

certificate of incorporation was issued by the Registrar of Companies, Tamil Nadu, changing thename of the company on January17, 2006.

Accepting the change in the name of the company in its registers, the IRDA has permitted

Reliance Life to carry on life insurance business subject to the condition that the company should

honour the commitments to the policyholders of the AMP Sanmar without altering any of the

terms and conditions of the original policy.

After the acquisition of the stake of the two promoter companies, Reliance Capital has been busychalking aggressive growth plans for the life insurance company. It plans to have one million

policyholders by this year end. The company under the new ownership has been selling policies

at a faster pace than ever before.

For the nine month ended 31st December 2005, AMP Sanmar / Reliance Life has a fresh

premium income of Rs114.48 crore, selling 41,488 policies with the average premium per policy

of Rs27,593. As AMP Sanmar, the company had earned fresh premium of Rs61.04 crore from

the 23,328 policies it sold during April-December 2004 at an average premium per policy of

Rs26,166.


63/86

63

Reliance Life Insurance launches 'Secure Child Plan'

Posted online: Thursday , November 22, 2007 at 00:00 hrs

Reliance Life Insurance, a fast-growing life insurance player in the country, on Wednesday

announced the launch of Reliance Secure Child plan. P Nandagopal, CEO Reliance Life

Insurance, announced the launch.

One of the unique propositions of the plan is that in the event of total and permanent disability of

the child due to an accident, it offers the benefit of fixed income at a rate of 10% of the sum

insured per annum under the policy payable to the child throughout his or her life.

"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 P Nandagopal while launching the product.

The plan also offers an inbuilt waiver of premium benefit in the event of death of the insured

proposer

(parent) that protects the future of the child by paying all future premiums so that the plan

remains in full force. Another novel offering is the playground program - an online community

that addresses the educational and recreational needs of the child through fun-filled quizzes,

puzzle, games, online jokes, contests and kid zone and offers redeemable e-points for his

achievements.

The company also handed over a cheque of Rs 5 lakh to Akanksha Foundation - a non-profitable

organization that educates less privileged children from Mumbai's slum areas and provides themwith vocational opportunities.


64/86

64

Reliance Life Insurance launches RSIP

Press Trust of India / Mumbai June 18, 2008, 17:17 IST

Anil Dhirubhai Ambani Group firm Reliance Life Insurance today 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, the fourth largest private insurer in the country, 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.

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 provide

relatively higher returns, it said.

"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.

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,

Nandagopal added.


65/86


66/86

66

Client Survey

Which type of policy do you like for insurance?

Findings:-

1. This shows that most of people like to invest in ULIP than traditional plans.2. 70% people like to invest in ULIP and only 30% people like to invest in traditional plans of life

insurance.


67/86

67

What Kind of policy do you have for life insurance ?

Findings:

y This shows that Most of the people are interested in automatic investment plan.y Only 24% people are interested in life insurance out of that 12% interested in AIP and 4-

4% interested in SIP & GYP & only 2% are interested in MRP .

y Major reason for highest selling of this policy is that maturity pd. is less & more returnsy Most of the consumer not known about the all policies .


68/86

68

Which company gives highest returns ?

Findings:

y It was found out that nearly 40% realiance life insurance give highest returny ICICI is the second most favorable Brand among.y Many customer consider HDFC as good brand but for Commission only 20% people

consider it good brand.


69/86

69

Which is the most Favorable Brand among Consumers?

Findings:

y 55% client believes that LIC is the most favorable Brand among consumers due to theGovt. Organization.

y 18% Client are in favors of RELIANCE as the most favorable brand among customers &27% believes in others insurance sectors.

y Reliance is the most favorable brand among customers in the eyes of 12% of corporatechannel.

y 16% Corporate channel favors of other insurance i.e. ICICI prudential, Met life, HDFClife insurance, Kotak life insurance etc.


70/86

70

What is the main problem faced by you in selling of insurance Products?

Figure 1

Findings:-

y Major Problem faced by advisor, corporate channel or tie-up business due to highallocation charges.

y The Second main problem is competition with organizations.y Third major problem is inadequate information among customers.


71/86

71


72/86

72

Which Factors is most required to become a successful Insurance organization?

Findings:-

y Only 16 % of the corporate channel think that profit delivery is the main factor tobecome a successful organization.

y Most of the customer, corporate channels (40% & 16% respectively) think that Timelyupdate and acknowledgement of funds is the main factor for success.

y Only 16% of the People admit the importance of Advisory Services.y

28% of client aggress with the importance of accessibility.


73/86

73

Are you aware of Reliance Life Insurance

Findings:-

y Only 28 % of the Clients are not aware of Reliance life Insurance.y 72% of client are aware of Reliance life insurance and its services.


74/86

74

How will you find the concept of Reliance life insurance co. ltd is single window for all the

Insurance Products.

Findings:-

y Not Surprisingly almost 72% of corporate channel, advisor find it a very potentialconcept

y 16% of customer aggress that this is a new concept in the insurance Market.y 8% of customer consider it a similar concept as of other Insurance services provider.y Only 2% of corporate channel have negative opinion about the concept.


75/86


76/86

76

OBSERVATIONS AND FINDINGS

Reliance Life Insurance co. Ltd. A company of Reliance ADA group has launched its

operation in April 2007. It is only financial services providers which provide all the financial

products under a single window with a very well known slogan Whenever there is any problem

to invest your money the answer is Reliance Life insurance. My study is related to know the

position of other Insurance services brands in the market mainly to know the client preference

towards other brands. Following are the observations and findings of my study: -

1. In the research, it is found that LIC and ICICI has very strong insurance networkin the Insurance market.

2. It is found that customer wants all the insurance products under a single window.3. The two main problems express by advisor in dealing with other company is less

commission and late redemption.

4. customer also express that advisory services and accessibility are also veryimportant in Insurance sector.

5. It is found that most of client show a very positive response towards the conceptof Reliance life insurance Ltd.

6. 80% of the customer see that great potential in Reliance Life Insurance Ltd in thefuture time.

LIMITATIONS OF THE STUDY


77/86

77

No doubt the survey has done very cautiously but still there are some limitations, which are

as follows:

The sample size is very small. The study was limited only to few cities, which may not provide the true representation. Due to the constraint of time and money, the scope of the study had to be limited to a great

extent.

Some times respondents do not give the exact information. Personal biasness is another problem.

consumer behavior was neither static nor of a set pattern. It changes with person to person.


78/86

78

RECOMMENDATIONS

&

SUGGESTIONS


79/86

79

RECOMMENDATIONS & SUGGESTIONS

After completing the research process and analyzing it thoroughly, I would suggest and

recommend the following points to the company that can help in taking Reliance Life Insurance

Ltd. to the no. 1 position in the market:

A wide publicity on the active media like T.V., newspapers is a must to influenceconsumers about Reliance Life Insurance Ltd. This will result in brand recall and

consumer will be influenced to purchase products through Reliance Life Insurance Ltd.

The company must provide adequate and timely redemption to all the existing customerit will the reputation of the company among potential client.

Company should look forward to improve the after sale services. Company may thinksome non-cash incentives for sincere and committed client

The company should put some efforts for breaking the perception towards equity andderivative market.

Regular survey should be conducted to know about the changing pattern of behavior ofconsumers, because consumer behavior is dynamic. This will help the company to know

about the consumer behavior.

The company should make some efforts to develop good relations with customers. The company can make a beginning by formulating separate annual plans and sales

targets.

There is need of advertisements through glow signs, TV advertisement and hoardings. The company should spend some part of its budget on research and development to

present innovative and new things to consumers and client.


80/86

80


81/86

81

CONCLUSION

CONCLUSION

Every thing marketing does should ultimately work in concert to make a firms brands

more valuable. In India, there is throat cut competition in the market of Insurance sector and

only that brand survive which adopt new strategies for sales of their products. To over come the

competition, the company must add pet different strategies and tactics, which help in survival of

brand.


82/86

82

To increase its share in the financial market a company must have a strong customer

network. The company must acquire skilled and dedicating Advisor by provides them adequate

and timely redemption.

Concluding the whole story it can be said that Reliance Life Insurance can only gain its

position by getting the proper customer network. Company has to focus not only acquiring the

competitive company but also to retain them in the organization for the longer period. It also has

to focus on improving the marketing channels, supply and after sale services.

So, it can be said that with these efforts Reliance Life Insurance Ltd. is leading towards

the success required. It will increase its market share and consumer preference more and more to

remain no one the market.

QUESTIONNAIRE

Sr. No.. Date..

QUESTIONNAIRE FOR SURVEY

NAME OF THE PERSON

ADDRESS....

ANNUAL EARNING.

CONTACT NO


83/86

83

Q1. What Kind of policy you like most ?

. high maturity & more returns less maturity pd. & less returns

both of these

Q2. Which Brand provides you Maximum returns?

Reliance ICICI HDFC Aviva

Others

Q3. Which is the most Favorable Brand among Consumers?

HDFC ICICI Reliance Aviva

Others

Q4. What is the main problem faced by employees in selling the policy ?

Inadequate Information Less Commission

Late Redemption Mistake in Punching

Q5. Which Factors is most required to become a successful market share ?

Prompt Delivery Timely Redemption

Advisory Service Accessibility


84/86

84

Q6. Are you aware of Reliance life Ltd?

Yes No

Q7. How will you find the concept of Reliance life insurance?

Very Good New Concept

Similar to Others Will not work

REFERENCES/BIBLIOGRAPHY

a. For Books:

1 Kotler Philip; Marketing Management, The Millennium Edition,Prentice Hallof India Private Limited, New Delhi, Sep. 1999.

2 Jain Subhash C.; International Marketing Management", Third Edition, CBSPublishers & Distributors, New Delhi, 2000.

3 Sharma Dr. D.D.; Marketing Research Principles, Applications and Cases ,Sultan Chand & Sons, New Delhi, 2001.

4 Chunawalla, Kumar, Sethia, Subramanian, Suchak, Advertising Theory AndPractice , Himalaya Publishing House, Mumbai, 2002.

5 Kothari.C.R.; Research Methodology Methods & Techniques, H.S.Popai forWishwa Prakashan, New Delhi, 1999.

b. For Journals/Magazines/Newspapers:Indian Channal World, Vol. I, Issue -9, May 28, 2008


85/86

85

c. Web Pages:

1. http://www.relianceadagroup.com/adportal/ADA/aboutus/da.html2. http://www.whatisindia.com/issues/reliance/index.html

http://www.relianceadagroup.com/adportal/ADA/aboutus/companies.html

3. http://en.wikip

Documents

AK Project Report on Insurance