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7/31/2019 Reliance Life Insurance vs Competitors
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A REPORT ON
{En estimation of potential market of different policies
of reliance life insurance vis--vis competitors}
BATCH OF 2008
BY
ASHUTOSH PATHAK6ND12669
CONTRACT:
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A REPORT ON
{En estimation of potential market of different policies of
reliance life insurance vis--vis competitors}
By
ASHUTSOH PATHAK
Enroll. No. - 6ND12669
Course- M.B.A.
INC Center- KOTASummer Internship Program
A report submitted is the partial fulfillment of requirement
of the M.B.A. program (class of 2006-2008)
ICFAI NATIONAL COLLEGE
Copies Marked List:-
Company Guide Ms. Vivek sharma
Faculty Guide Dr. Ritu singh
Regional sip coordinator Mr. Abhishek coobchandani
ACKNOWLEDGEMENT
At the outset , I would like to thank RELIANCE LIFE
INSURANCE for giving me the approval to do this project in the
organization ,I am grateful to Ms.GEETA GUPTA (Head of
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KOTA branch ) for the moral support, encouragement and
generous assistance .
No good work is complete unless and until it is guided by
versed teacher. I wish my deep gratitude to my faculty guide Dr.RITU SINGH whose able guidance helped me in all respects in
presenting the report as best as can be. I am thankful to her for
timely advices towards completions of this project.
I would like to express my deepest gratitude to CDC guide
.for giving me an opportunity to work under
such a prestigious company & also helping in completing my
project.
I shall be failing in my duty if I not express my thanks to thecompany guide Mr.VIVEK SHARMA (Sip Trainer) who undoubtedlyhelped me and without whose help the project would not have beencompleted. I would like to give my deep gratitude to various
personalities in the company Mr. Mahendra Singh Chauhan.
Needless to mention again that I could complete myseminar report only because of the spirited guidance of the above
persons who did not leave a single stone unturned in inspiring
me during my project work .
ASHUTOSH PATHAK
(6ND12669)
SUMMERY
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En estimation of potential market of different policies of
reliance life insurance vis--vis competitors
As the project title itself indicates the En estimationof potential market of different policies of reliance life
insurance vis--vis competitors w.r.t. KOTA city it
includes all the aspect of life insurance advisory services of
RELIANCE LIFE INSURANCE (Kota). The project
contains all the detail information about the Life Insurance
Industry and also other facility off its competitor company.
The project is carried out the competitive study ofother Life Insurance Companies.
Dividing it in the phases carried out the study, firstly
the data was collected from the net & various sources. Next
phase was to meet people to create business & to recruit
advisors. The last phases to find out people who interested
to open Reliance life insurance franchise in Baran city.
It was recommended to Reliance life insurance that,
they should open branches in other cities, beside they
should also target small city people and they invest more
for product awareness activities.
Introduction
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The purpose of the project is to know about the market for
Reliance Life Insurance Company. Today overall market
for insurance industry is consider as 100% than only 30%
market has covered by insurance companies so there is
70% market is remaining for insurance companies.
Reliance Life Insurance Company is growing very fast. In
March month Reliance Life Insurance Company has
maximum business from its competitors.
In future life insurance sector going to give thousands
of vacancies to the students so there is lots of
opportunities for MANAGEMENT students. Becausecapture to remaining 70% market they require lots of
men over. Students have to give their full efforts or
100% target in their summer internship program for
getting good placements in life insurance sector.
(1.2) Objectives
The prime objective of the study was to understand the
market and analysis the competitors.
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The survey was used to
Understand the type of Life Insurance Policies desiredby the customer.
To find out the degree of awareness of life Insurance.
To study the consumer behavior.
To find out the market potential for life Insurance
Policies in Kota.
To learn professionalism in market of financial
product and services.
To find prospects for the institution.
To conduct the survey to know how many personshave Life Insurance Policies or how many dont have.
(1.3) SCOPE OF THE STUDY
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I am undergoing the summer internship project in
RELIANCE LIFE INSURANCE CO. I had joined the
company on 19th March, 2007 and assigned task of doing
the market survey work for Reliance Market Return Plan. Ihave done my project on En estimation of potential market
of different policies of reliance life insurance vis--vis
competitors like ICICI Prudential life Insurance & Birla
Sun Life etc. In this report I also had to present the details
of other financial instruments in which the customers invest
their money like mutual funds. It is very interesting project
and very learning experience for me. My thinking has been
changed for the life insurance sector by this project.
(1.4) LIMITATIONS
Though I had completed my project on time but I still faced
certain problems while doing the market survey work and
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collecting information for my project report they are listed
below:
o
Searching for the prospective client for the insurancepolicy is very time consuming.
o Some clients have already taken the policies of our
competitors and they are not interested in giving
information about it.
o Limited data availability.
o The unit linked products are very new for me and I
had consumed a lot of time for understanding about
those.
Irregular consumer behavior regarding taking the Life
insurance policies.
(1.5) SOURCES AND METHODS
The data was from companies and it is first handinformation .The Company various contents and the soft
copies of the same proved to an important source of the
information in caring out the project. The other necessary
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information is collected from the various other sources out
side the company i.e. from newspapers, websites, etc.
To sum up the resources
PRIMARY SOURCES
Company Records
Informal talks with the personnel
SECONDARY SOURCES
Websites
Newspaper
Magazines
Textbook
{2.1} why we take life insurance policies?
As we all know that now days life Insurance is not
only to secure the life. It is also an investment phase.
The benefits of life insurance policies now days-:
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To secure the life
To investment
To get the benefits in the future
{2.2}
MAJOR COMPETITORS OF LIFE INSURANCE
COMPANIES IN INVESTMENT INSTRUMENT
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MUTUAL FUNDS
(2.3) MUTUAL FUNDS
A security that gives small investors access to a well-
diversified portfolio of equities, bonds and other securities.
Each shareholder participates in the gain or loss of the
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fund. Shares are issued and can be redeemed as needed.
The fund's net asset value (NAV) is determined each day.Each mutual fund portfolio is invested to match the
objective stated in the prospectus.
It has been shown in study after study that a majority of
mutual funds fail to beat the market. Also, picking mutual
funds purely on the basis of past performance usually does
not work.
As you probably know, mutual funds have become
extremely popular over the last 20 years. What was once
just another obscure financial instrument is now a part of
our daily lives. More than 80 million people, or one half of
the households in America, invest in mutual funds. That
means that, in the United States alone, trillions (yes, with a
"T") of dollars are invested in mutual funds.
In fact, too many people, investing means buying mutual
funds. After all, its common knowledge that investing in
mutual funds is (or at least should be) better than simply
letting your cash waste away in a saving account, but, for
most people, that's where the understanding of funds ends.
It doesn't help that mutual fund salespeople speak a strange
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language that, sounding sort of like English, is interspersed
with jargon like MER, NAVPS, load/no-load, etc.
Originally mutual funds were heralded as a way for thelittle guy to get a piece of the market. Instead of spending
all your free time buried in the financial pages of the Wall
Street Journal, all you have to do is buy a mutual fund and
you'd be set on your way to financial freedom. As you
might have guessed, it's not that easy. Mutual funds are an
excellent idea in theory, but, in reality, they haven't always
delivered. Not all mutual funds are created equal, and
investing in mutual isn't as easy as throwing your money atthe first salesperson who solicits your business.
(2.4) certain mutual funds termsNet assets value (NAV).
Tactical assets allocations
Portfolio
Portfolio turnover
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No- load fund
NAV per share
Non-taxable dividends
Open-end fund
Strategic assets allocation
Tracker funds
Trailer fee
Trust deed
Vulture fund
Weighted average credit rating
Value at risk
(III)
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INDUSTRY
PROFILE
{3.1} Introduction of Life Insurance
Indian Insurance Industry: First Learn about Insurance may be
described as a social device to reduce or eliminate risk of life andproperty. Under the plan of insurance, a large number of people
associate themselves by sharing risk, attached to individual.
The risk, which can be insured against include fire, the peril of sea,
death, incident, & burglary. Any risk contingent upon these may be
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insured against at a premium commensurate with the risk involved.
Insurance is actually a contract between 2 parties whereby one party
called insurer undertakes in exchange for a fixed sum called
premium to pay the other party happening of a certain event.
Insurance is a contract whereby, in return for the payment of
premium by the insured, the insurers pay the financial losses
suffered by the insured as a result of the occurrence of unforeseen
events.
With the help of Insurance, large number of people exposed to a
similar risk makes contributions to a common fund out of which thelosses suffered by the unfortunate few, due to accidental events, are
made good.
{3.2} Brief history of Life Insurance Sector
The insurance sector in India has come a full circle from being an
open competitive market to nationalization and back to a liberalized
market again. Tracing the developments in the Indian insurance
sector reveals the 360-degree turn witnessed over a period of almost
190 years. The business of life insurance in India in its existing form
started in India in the year 1818 with the establishment of the
Oriental Life Insurance Company in Calcutta.
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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 - 245 Indian and foreign insurers and provident societies taken
over by the central government and nationalized. LIC formed by an
Act of Parliament, viz. LIC Act, 1956, with a capital contribution of
Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can
trace its roots to the Triton Insurance Company Ltd., the first
general insurance company established in the year 1850 in Calcutta
by the British.
Some of the important milestones in the general insurance businessin India are:
1907 - The Indian Mercantile Insurance Ltd. set up, the first
company to transact all classes of general insurance business.
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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 setminimum solvency margins and the Tariff Advisory Committee set
up.
1972 - The General Insurance Business (Nationalization) Act, 1972
nationalized the general insurance business in India with effect from
1st January 1973.
107 insurers amalgamated and grouped into four companies viz. theNational 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.
{3.3} Overview of Life InsuranceInsurance Overview will try to do a serious attempt of describing the
meaning of insurance and the terms associated with it. Many peopledo have heard about the term Insurance but don't have a clear ideaabout it. Again many might not be conversant with the differententities of this huge market of insurance.
Insurance Overview would try to give a bird's eye view on the
different sectors of the insurance industry such as insurance company,insurance broker, etc. Insurance also has certain concepts attachedwith it like insurance premium, insurance rates, etc. before buying ainsurance a customer must be conversant with the benefits and risksassociated with it. They must be aware of the extent of the regular
payment of the premium to the insurance company.
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Insurance Overview also tries to give the best insurances available inthe market. The selection of the best insurance is based on certain
parameters and becomes a bit difficult and cumbersome for a
particular individual to choose from the whole array of availableinsurance offers. But now-a-days the insurances are available online
just like the credit cards and mutual funds where one could select,compare and apply for the same.
Terms and conditions of specific insurances are written in theapplication forms where all the particulars including rules, feesstructure, etc are written with minute details. Hence a insurance
customer must go through all these before applying for the same.Policies of insurance companies differ from each other. Thats whyreading the terms of the insurance companies become so muchimportant.
Insurance Overview thus has tried to point out the important pointswhich a insurance customer should know.
Tried to point out the important points which a insurance customershould know.
Meaning Insurance
Insurance Company
Insurance Broker
Insurance Policy
Term Insurance
Insurance Claim
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Mortgage Insurance
Insurance Coverage
On line Insurance
Affordable Insurance
Best Insurance
Insurance Premium
Insurance Risk
Insurance Information
Insurance Benefits
{3.4} List of Life Insurance Companies in IndiaBajaj Allianz Life
2. ICICI Prudential Life Insurance
3. HDFC Standard Life
4. Birla Sun life
5. SBI Life Insurance
6. Kotak Old Mutual Life Insurance
7. Aviva Life Insurance
8. Reliance Life Insurance - Formerly known as AMP Sanmar LIC9. Tata AIG Life
10. MetLife India Life Insurance
11. ING Vysya Life Insurance
12. Max Network Life Insurance
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13. Sahara Life Insurance - Now they are not into business
14. Shriram Life Insurance
{3.5} Present Status of Life Insurance
Now life insurance is not only..
To risk cover of life
To secure our future
To get tax benefits
But also
Today you can get return on your invested money in
the plan with the risk cover.
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Reliance Life Insurance Company Limited is a part ofReliance 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 investment,
private equity and other activities in financial services.
Reliance Capital Limited (RCL) is a Non-Banking
Financial Company (NBFC) registered with the Reserve
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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 tobecome a dominant player in this industry and offer fully
integrated financial services.
Reliance Life Insurance is another step forward for
Reliance Capital Limited to offer need based Life Insurance
solutions to individuals and Corporate.
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.
Reliance Life Insurance Company LimitedReliance 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 andgeneral insurance, proprietary investments, private
equity and other activities in financial services.
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Reliance Life Insurance is an associate company ofReliance Life Insurance is an associate company of
Reliance Capital Ltd., which along with its associatesReliance Capital Ltd., which along with its associates
has acquired 100% shares in AMP Sanmar Lifehas acquired 100% shares in AMP Sanmar Life
Insurance Co Ltd.Insurance Co Ltd.Reliance Life Insurance would strive hard to achieve
the following goals:-
Emerge as transnational Life Insurer of global scale
and standard
Achieve impeccable reputation and credentials
through best business practices Mission: Create unmatched value for everyone
through dependable, effective, transparent and
profitable life insurance and pension plans
Anil Ambani's Reliance Life Insurance Company Limited,
a subsidiary of Reliance Capital Limited, has concluded a
much-awaited deal in the life insurance sector.
Even before selling a single life insurance policy, Reliance
Life, a part of the Anil Dhirubhai Ambani Enterprises, has
snapped the Chennai-based private life insurer AMP
Sanmar Life Insurance Company Limited. AMP Sanmar isa 26:74 joint venture between AMP, Australia and Sanmar
group. Interestingly, only recently, the Reliance Life had
approached the Insurance Regulatory and Development
Authority (IRDA) to revive its business license that had
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been cancelled by the regulator for non-commencement of
business
MARKET SHARE&MARKET STRUCTURE
According to IRDA 2007 YTD (YEAR TILL DATE) FEB Market share of
Reliance is 4.21%.
According to IRDA 2007 MTD (MONTH TILL DATE) FEB Market share ofReliance is 6.18%
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6.18
7.21
15.07
22.35
27.65 I.PRO
BAJAJ ALLIANZ
SBI
HDFC
RELIANCE LIFE
MARKET SHARE OF DIFFERENT PRIVATE INSURANCE COMPANY FOR
FEB 2007
PRODUCTS OF RELIACNE LIFE INSURANCE IN
INDIVIDUAL PHASE
{4.1}Key Features Reliance Automatic Investment Plan
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Two plan options to choose from Ready-made and
Tailor-made
Life Stage asset allocation to ensure automatic change in
investment patterns, under the Ready-made Plan optionFreedom to decide your own fund mix based on your
risk profile under the Tailor-made Plan
Regular, limited, single premium paying options
Unmatched flexibility through our Exchange Option
Liquidity in the form of partial withdrawal
Option to avail of Accidental Death Benefit, Accidental
Total, Premium Disability and Term Insurance riders
Reliance Automatic Investment Plan at a glance
Basic Plan Minimum Maximum
Age at Entry 30 days 65 years last birthday
Age at Maturity 18 years last birthday 80 years last birthday
Premium
Paying Term
5 years 30 years
Min Sum
Assured
Regular / Limited Premium: Annualized Premium for 5 years or
Annualized Premium for half of the policy term, whichever higher
Single Premium 125% of the single premium amount
Max Sum
Assured
No Limit
Benefit Illustration
To enable a better understanding on how the plan works, please
refer to the below table for Regular Premium.
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Age of the customer 30 35 40 45
Annual Premium Paid 25,000 25,000 25,000 25,000
Policy Term 15 15 15 15
Premium Paying Term 15 15 15 15
Sum Assured 1,87,500 1,87,500 1,87,500 1,87,500
Maturity Values:
at 6% investment return
at 10% investment return4,95,104
6,94,534
4,94,413
6,93,530
4,93,017
6,91,444
4,90,506
6,87,755
Minimum Premium
Yearly Half Yearly Quarterly Monthly
Regular Premium option Rs 10,000 Rs 5,000 Rs 2,500 Rs 1,000
Limited Premium Rs 20,000 Rs 10,000 Rs 5,000 Rs 2,000
Single Premium Rs 25,000
Min Top Up amount Rs 2,500
{4.2}For the select few like you, the Reliance Money Guarantee
Plan is a Unit Linked product addressing comprehensive
need to strike that perfect balance of Protection and Savings
that you deserve as you grow successfully. The RelianceMoney Guarantee Plan is a Regular Premium Unit Linked
Policy which guarantees the entire premium (including
premiums for top- ups) paid by you.
Key Features
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Capital Guarantee the sum of all premiums paid is guaranteed
on maturity or on death before the maturity.
Capital Guarantee is available on both the basic premiums as
well as on top-up premiums
Unique Return Shield feature to protect your returns
Choice to invest from 3 pre-packaged investment fund options
Unmatched flexibility through our Exchange Option to move
between the Reliance Money Guarantee suite of products
offered, as you grow up the ladder
Liquidity in the form of partial withdrawals from top-up fund
Option to package with Accidental Death & Disability and
Term Insurance riders
Benefits in Details
Capital Guarantee: The plan offers Capital Guarantee provided
the Policy is kept in full force by payment of due premiums on
time.
Capital Guarantee under the Basic Plan: Premiums paid under
the Basic Plan are guaranteed on the maturity of the Policy or
on death during the Policy Term.
Capital Guarantee under the Top-Up premiums: Each top-uppremium paid is guaranteed on death during the Policy Term
provided there are no partial withdrawals from that top-up.
Each top-up premium paid is guaranteed on maturity of the
Policy provided the Policy Term is greater than ten years,
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there are no partial withdrawals from that top-up and the top-
up was paid ten years before the maturity date.
Life Cover Benefit: The amount of Death Benefit depends on
the age of the Life Assured at the time of death
Type ofFund
Investment Objectives Asset CategoryAsset
Allocation
Range (%)
Target (%)
Fund D The investment objective of Fund
D is to provide investment returnsthat exceed the rate of inflation in
the long term while maintaining
moderate probability of negativereturns in the short term. The risk
appetite is defined as 'moderate'.
Money Market
Instruments
0 - 20 0
Debt Securitiessuch as Gilts,
Corporate Debt
excludingMoney Market
Instruments
0 - 100 60
Equities 0 - 40 40
Fund E The investment objective of FundE is to provide, in the long term,
Money MarketInstruments
0 - 20 0
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returns which are significantly
higher than the inflation rate,
through high exposure to equityinvestments, while recognizing
that there is some probability of
negative returns in the short term.The risk appetite is 'moderate to
high'.
Debt Securities
such as Gilts,
Corporate Debtexcluding
Money Market
Instruments
0 - 100 50
Equities 0 - 50 50
Fund F The investment objective of Funds
is to provide, in the long term,returns which are significantly
higher than the inflation rate,
through high exposure to equityinvestments, while recognizing
that there is some probability of
negative returns in the short term.
The risk appetite is 'moderate tohigh'.
Money Market
Instruments
0 - 20 0
Debt Securities
such as Gilts,
Corporate Debt
excludingMoney Market
Instruments
0 - 100 40
Equities 0 - 60 60
{4.3}
Reliance Endowment Plan gives you just the financial independence
to realize your dreams in the future. It lets you decide how much
you would like to set as your sum assured based on your current
financial position and your expected future expenses.
Key Features
On maturity receive Sum Assured plus bonusesWealth creation through bonus additions
More value for your money by way of High Sum Assured
Rebate
Increase your insurance protection by adding Term Cover
Choose to pay regular or single premium
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Choose to add the benefit of two riders - Critical Illness Rider
and Accidental Death Benefit & Total and Permanent
Disablement Rider
Choose to avail of a Policy Loan after three full years of
premium payment
How does this Plan work?
You pay premium every year for the entire term and get Sum
Assured plus accumulated bonuses at maturity. On death, your
Beneficiary will get the Sum Assured plus accumulated bonuses.
Benefits
Maturity Benefit: On maturity you get Sum Assured plus
accumulated bonuses (if any) till that date.
Life Cover Benefit: In the unfortunate event of loss of life,
your family will receive the Sum Assured plus accumulated
bonuses (if any) till that date.
Rider Benefit: You also have the option to add three additional
benefits to customize the Policy as per
Your needs for the regular premium plan
1. Term Life Insurance Benefit Rider
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2. Accidental Death Benefit & Total and Permanent Disablement
Rider
3. Critical Illness Rider
Critical Illness
Age at entry 18 yrs 55 yrs
Age at expiry 23 yrs 64 yrs
Sum AssuredRs
1,00,000
Rs 10,00,000 (subject to a maximum of
basic policy sum assured)
Minimum policy
term5
Exclusion with Critical IllnessCancer: any CIN stage (cervical intraepithelial neoplasia); any pre-
malignant tumour; any non-invasive cancer (cancer in situ); prostate
cancer stage 1 (T1a, 1b, 1c); all skin cancers including malignant
melanoma stage IA (T1a N0 M0); any malignant tumour in the
presence of any Human Immunodeficiency Virus.
Heart Attack: Non-ST-segment elevation myocardial infarction
(NSTEMI) with elevation of Troponin I or T; other acute Coronary
Syndromes.
Stroke: Transient ischemic attacks (TIA); neurological symptoms
due to migraine.
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Coronary Artery (Bypass) Surgery: Angioplasty and/or any other
intra-arterial procedures; key-hole surgery.
Paralysis: Paralysis due to Guillain-Barr-Syndrome.
The tables below show the indicative annual premiums for
individual Life Assured across different Sum Assured and ages for a
Policy Term of 20, 25 and 30 years.
Sum Assured: 1
Lakh
Sum Assured: 3
Lakh
Sum Assured: 5
Lakh
Age\Term 20 25 30 20 25 30 20 25 30
30 4814 3733 3052 14142 10899 8856 23070 17665 14260
35 4897 3842 3192 14391 11226 9276 23485 18210 14960
40 5039 4022 3421 14817 11766 9963 24195 19110 16105
45 5273 4318 3799 15519 12654 11097 25365 20590 17995
{4.4}
While most insurance plans block your money for a certain period
of time, Reliance Cash Flow Plan gives you the double benefit of
life insurance along with easy liquidity through lump sum cash. It
provides money periodically when you need it.
It lets you live life to the fullest today and at the same time, helps
you stay protected for tomorrow by giving you the flexibility of
receiving a specified percentage of the Sum Assured at specifiedintervals.
Key Features
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Easy Liquidity - Get periodic cash flows at the end of the
fourth year and thereafter at the end of every three years
Wealth creation through bonus additions
On maturity receive accumulated bonuses along with final
lump sum payout
More value for your money by way of High Sum Assured
Rebate
Full Sum Assured plus bonuses in case of your unfortunate
death. This is over and above the Survival Benefits already
paid
Option to add two riders Critical Illness Rider and
Accidental Death Benefit & Total and Permanent Disablement
Rider
BenefitsSurvival Benefit: Get a percentage of the Sum Assured on the
fourth anniversary and on every third Policy Anniversary till
maturity.
Maturity Benefit: On maturity you get the remaining
percentage of the Sum Assured plus accumulated bonuses.
Life Cover Benefit: In the unfortunate event of loss of life,
your Beneficiary will receive the full Sum Assured plus
accumulated bonuses till that date.
Rider Benefit: You also have the option to add two additional
benefits to customize the Policy as per your needs:
Accidental Death Benefit & Total and Permanent DisablementRider
1. Critical Illness Ride
2. When & how much of Fixed Benefits paid?
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25% of Sum Assured payable every year as lump sum benefitduring the last four Policy anniversaries
All future premiums are waived in the event of unfortunate loss
of life
Guaranteed Fixed Benefits continue even after loss of life of thePolicyholder
More value for your money by way of High Sum Assured Rebate
Choose to add the benefit of two riders Critical Illness Rider
and Accidental Death Benefit & Accidental Death Benefit &
Total and Permanent Disablement Rider
Policy participates in profit even after the loss of life of the Life
Assured
Sample IllustrationThe tables below show the indicative premiums for an individual Life
Assured across different Sum Assured for a Policy Term of 15, 18 and 20
years.
Sum Assured: 1 Lakh Sum Assured: 3 Lakh Sum Assured: 5 Lakh
Age\Term 15 18 20 15 18 20 15 18 20
30 7665 6230 5520 22695 18390 16260 37325 30150 26600
35 7830 6415 5720 23190 18945 16860 38150 31075 27600
40 8115 6720 6045 24045 19860 17835 39575 32600 29225
45 8655 7290 6630 25665 21570 19590 42275 35450 32150
What is the Policy Term?
Minimum Policy term: 5 years
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Maximum Policy term: 20 years
Who can buy this product?
Minimum age at entry: 20 yearsMaximum age at entry: 60 years
Minimum age at
maturity:25 years
Maximum age at
maturity:70 years
What is the Sum Assured?
Minimum Sum Assured: Rs 25,000
Maximum Sum Assured: No Limit
{4.6}
What are the different fund options?Reliance Life Insurance understands the value of your hard earnedmoney and in our Endeavour to help you grow your wealth, we offeryou 4 different tailor-made investment funds. You have the option to
allocate your premium in these funds as you wish.
The four different funds offered are
1. Capital Secure Fund: The investment objective of this fund is tomaintain the value of all contributions (net of charges) and all interest
additions. This Fund offers steady return for very little risk. The riskprofile of this fund is low. Your funds are invested 100% in BankDeposits, Government Bonds and debt instruments that offer financialsecurity.
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Further, allocation in Capital Secure Funds for a policy is a subject toa maximum limit of 20% at any time.
2. Balanced Fund: The investment objective of this Fund is to
provide you with investment returns which exceed the rate of inflationin the long term while maintaining a low probability of negative
investment returns. In this fund, a major portion of your funds areinvested in fixed securities while a small percentage is invested in theequity market, which is exposed to market movements. The risk
profile of this fund is low to medium.Investment would be at least 80% in fixed interest securities andmaximum 20% in equities.
3. Growth Fund: The investment objective of this Fund is to provideyou with investment returns which exceed the rate of inflation in thelong term while maintaining a moderate probability of negativeinvestment returns. This fund offers a greater portion
of your funds are invested in fixed securities while a small percentageis invested in the equity market, which is exposed to market
movements. The risk profile of this fund is medium to high.
Investment would be at least 60% in fixed interest securities and
maximum 40% in equities.
4. Equity Fund: The investment objective of this fund is to provide
Policyholders with high exposure to equities and the possibility of
investment returns which generate a high real rate of return in the long
term while recognizing that there is a significant probability of negativeinvestment returns in the short term. This fund offers a totally equity
based investment option. Your returns depend entirely upon the
performance of the equity market. The risk profile of this fund is high.
The higher risk of this portfolio means that expected returns would alsobe higher. Investments would not exceed 30% in Bank Deposits and
may be 100% in equities.
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What is the Policy term?
Minimum Policy term 5 years
Maximum Policy term 40 years
Flexible Premium Payment Modes?
You have a choice of five premium payment modes
Annual Rs. 10,000
Half-yearly Rs. 5,000
Quarterly Rs. 2,500
Monthly Rs. 1,000
Single premium Minimum Premium is Rs.25,000
{4.7}
Retirement means different things to different people, while somewant to relax and take a trip around the world, some want to start up
a venture of their own, and pursue a dream harnessed for years.
The power to make your autumn years special lies only with you.
The Reliance Golden Years Plan gives you the power and the right
kind of solution - A retirement plan that allows you to save
systematically and generate the much-needed corpus to make your
olden years look golden.
UNDER THIS PLAN THE INVESTMENT RISK IN THE
INVESTMENT PORTFOLIO IS BORNE BY THE
POLICYHOLDER.
Key Features
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Invest systematically and secure your golden years
A flexible unit-linked pension product that is different from
traditional life insurance products with Vesting Age between
45 and 70 years
Four different investment funds to choose from
Flexibility to switch between funds
Option to pay Regular, Single as well as Top-up Premiums
Flexibility to advance/extend your Vesting Age
Tax free commutation up to one third of Fund Value at
Vesting Age
What are the benefits available with Reliance Golden Years Plan?
At Vesting:
On vesting, you can purchase annuity plan for the full FundValue
You may commute up to one third of Fund Value as tax free
lump sum and the balance can be used for the purchase of annuity
Open Market Option: you can purchase an annuity either fromReliance Life Insurance Company Limited or from any other
registered life insurance company.
At Death: In the unfortunate event of your death during the Policy
term, the Beneficiary will get the Fund Value. This amount can betaken as a lump sum or an annuity can be purchased for the entire lump
sum or portion of it. The Beneficiary will have the option to purchasean annuity either from Reliance Life Insurance Company Limited or
from any other registered life insurance company.
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. Premium Allocation Charge:
Year 1 10%
Subsequent years 5%
Single premium 5%
Top-Up premiums 5%
2. Fund Management Charges:
Unit Linked Funds Annual Rate*
Capital Secure 1.50%
Balanced 1.50%
Growth 1.75%Equity 1.75%
PRODUCTS OF RELIACNE LIFE INSURANCE IN
INDIVIDUAL PHASE
{4.8}
What is Reliance Group Term Assurance Policy?
Reliance Group Term Assurance Policy is a one year Renewable
Term Assurance contract. The benefit is payable on the happening
of the contingency during one year. At the end of the year, the
contract may be renewed.
Who is Reliance Group Term Assurance Policy designed for?Employers looking for a comprehensive professionally administered
term assurance cover for their employees. Subject to approval by the
Provident Fund Commissioner, this Policy can be used as a
replacement for the Employees Deposit Linked Insurance Scheme
under the Provident Fund Act.
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What are the benefits provided?
A payment is made on the death of an employee. Cover can be:
Fixed multiple of salary
% of salary for each year of future service to normalretirement date
Fixed Rupee amount
Fixed Age-related scale
Formula based on designation / rank of employees in the
group
If an employee becomes disabled, as defined by us, then the benefit
above is accelerated and paid out in 5 equal annual installments.
No further benefit is payable subsequently.
No benefits are payable on survival to the end of the year.
What options are available?
You can choose:
Whether or not to provide the benefit on disablement
Whether or not you wish to benefit from experience in your
policy
Whether or not to give your employees the choice of
continuing their cover with us under an individual policy
No. of LivesNo. of Life
yearsX Y
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500 1500 50% 60%
1000 3000 50% 60%
2500 7500 60% 61%
5000 15000 75% 63%7500 22500 75% 65%
10000 30000 75% 67%
15000 45000 75% 70%
20000 60000 75% 70%
50000 150000 85% 70%
100000 300000 85% 70%
{4.9}
What is Employee's Deposit Linked Insurance Scheme, 1976?All establishments with at least 10 full-time permanent employees and
to whom the Employee's Provident Fund and MiscellaneousProvisions Act, 1952 applies, have a statutory liability to subscribe toEmployee's Deposit Linked Insurance Scheme (EDLI), to provide for
life insurance for all their employees.
Is Reliance EDLI Scheme approved for offer as an alternative to
EDLI?YES, The Central Provident Fund Commissioner has approvedReliance Life Insurance Employee Benefit Life Assurance policies to
be offered as an alternative to the Employee's Deposit LinkedInsurance Scheme, 1976 (EDLI).
What are the benefits of Reliance EDLI Scheme as against
EDLI?
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Several benefits of replacing EDLI by Reliance EDLI Scheme policyare:
Possible reduction in contributions payable by the employer.
The premium payable by the employer under the Reliance EDLIScheme could be lower than the total contribution paid by the
employer under the EDLI Scheme depending on the average age andrisk profile of the industry.
Simple structure of the life insurance coverLife cover provided by EDLI is proportional to the balances in the PFaccount of the employee subject to certain maximum limits.
Life cover provided by Reliance EDLI Scheme is a simple flat cover
equal to Rs 62,000, the maximum amount specified by the EmployeesDeposit Linked Insurance Scheme, 1976 (EDLI).
Stress - free administration
Experienced and professional administration resulting in hassel free
services for member employee data management and claimspayments apart from others
Risk profile of the funds
Fund
type
Time
Horizon
Risk
Level
Level of
returns
Asset Allocation
Fixed interest
securities not
less than
Equities
not more
than
Capital
SecureShort Low Low 100% 0%
Balanced MediumLow-
MediumMedium 80% 20%
Growth Long Medium- Medium 60% 40%
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High
Net Asset Value (NAV) calculation:The Unit Price of each fund will be calculated on a daily basis.
Unit
Value =
Total Market Value of assets plus/less expenses
incurred in the purchase/sale of assets plus Current
Assets plus any accrued income net of Fund
Management Charges less Current Liabilities less
Provision
Total Number of units on issue (before any new
units are allocated/redeemed)
{4.10}
Why should you consider the Reliance Group Superannuation
Policy?As an employer you currently contribute 12% of each employee's
salary into the Employees Provident Fund Scheme. However, is this
sufficient to provide for an adequate retirement income for your
employees?
The answer to this question is unfortunately, NO.
Why? There are two main reasons.
Firstly, your employees have the option to withdraw assets from the
Provident Fund on a regular basis to meet ongoing lifestyle
expenses. Most of your employees will reach retirement age with an
inadequate balance to purchase an income stream to provide them a
reasonable income on retirement.
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The second reason is that employees are now retiring younger but
are living longer. Therefore the capital they need to buy an income
stream is much greater than ever before, and this increase in life
expectancy will continue to grow making this gap even greater.
What does our Reliance Group Superannuation Policy offer?
Superannuation is a tax effective way for employers to reward and
recognize employee performance. The Reliance Group
Superannuation Policy provides you with the flexibility to enable
you to tailor your Superannuation Scheme to suit various groups of
employees.
Employers can receive a full tax deduction for contributions up to
15% of an employee's salary into the Reliance Group
Superannuation Policy arrangement.
What are the investment options and what is the flexibility?Investment choice allows you to choose any combination of our
three investment funds to maximize your investment return.
Risk profile of the funds
Fund
type
Time
Horizon
Risk
Level
Level of
returns
Asset Allocation
Fixed interest
securities not less
than
Equities not
more than
Capital
SecureShort Low Low 100% 0%
Balanced MediumLow-
MediumMedium 80% 20%
Growth Long Medium- Medium 60% 40%
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High
Net Asset Value (NAV) calculation:
The Unit Price of each fund will be calculated on a daily basis.
Unit Value =
Total Market Value of assets plus/less expenses incurred in the
purchase/sale of assets plus Current Assets plus any accrued
income net of Fund Management Charges less Current Liabilities
less Provision
Total Number of units on issue (before any new units are
allocated/redeemed)
{4.11}
The Indian Government introduced the Payment of Gratuity Act in
1972. Generally gratuity accrues at a rate of 15 days last drawn
salary per year of service for each employee or as defined by the
trust deeds. Gratuity is payable immediately on cessation ofemployment, provided the employee has continuous service of at
least five years. The five year provision does not apply on death or
disablement of the employee. Gratuity by nature is a medium- to
long-term liability of the employer and accordingly an appropriate
medium- to long-term investment strategy should be adopted by
trustees to match assets and liabilities
Liability for your employees gratuity is often the trickiest thing toforecast accurately and manage well. While doing so you may come
across some pertinent questions: What is my true liability for
employees gratuity? How do I manage this liability? Am I
maximizing my potential tax benefit? Am I rewarding my most
valuable employees adequately? Am I matching long-term liabilities
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under Gratuity with my investment strategy? Are my Gratuity assets
professionally managed?
We at Reliance Life Insurance Company Limited can be of help to
find answers to most of these very relevant questions. We can assistyou to meet your obligations under the Payment of Gratuity Act
while providing innovative solutions and delivering long-term
results for your investment through our Reliance Group Gratuity
Plan. You can also transfer your existing gratuity liability managed
under some other funds to Reliance Life Insurance Company
Limited.
Reliance Group Gratuity Plan
This is a unit linked group Gratuity product with three different fund
options, namely Capital Secure, Growth and Balanced Funds. It
enables employers / trustees with more than 20 employees to
outsource the management of their employees Gratuity funds andthe related administration to Reliance Life Insurance Company
Limited.
Policy Conditions
Minimum/Maximum annual past service gratuity contribution
Rs.200000/no limit
Minimum/Maximum Entry Age - 18 years last birthday/64years last birthday
Maximum Maturity Age - 65 years last birthday
Minimum Policy Term - 1 year
Minimum/maximum Insured death benefit sum assured
Rs.1000 per member/no limits
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The Plan
The Reliance Group Gratuity Plan is a unit linked Plan where the
employer can choose for each member past service gratuity to be
paid out to the employee and a level of insured death benefit, subject
to a minimum insured death benefit of Rs.1000 per member. Thisinsurance premium will be quoted by us and will be payable over
and above the past service gratuity liability contributions. Each past
service gratuity liability contribution received will be utilized to
purchase units in the unit-linked funds chosen by the employer /
trustees. The fund options have different time horizons, risk profiles
and return levels.
(V)
COMPETITORS
OF
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{5.1} About Birla Sun Life Insurance Company Limited
Birla Sun Life Insurance pioneered the unique Unit Linked Life
Insurance Solutions in India
Within 4 years of its launch, BSLI has cemented its position as
a leading player in the Private Life Insurance Industry There has been focus on Investment Linked Insurance
Products, supported with protection products to maintain
leadership in product innovation.
Multi Distribution Channels- Direct Sales Force, Alternate
Channels and Group offering convenient channels of purchase
to customers.
Web-enabled IT systems for superior customer services.
First to have issued policies over the Internet.
Corporate governance and a high degree of transparency in all
business practices and procedures.
First to have an operational Business Continuity Plan.
VISION
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To be a world class provider of financial security to individuals and
corporatist and to be amongst the top three private sectors life
insurance companies in India.
MISSION
To be the first preference of our customers by providing innovative,
need based life insurance and retirement solutions to individuals as
well as corporatist. These solutions will be made available by well-
trained professionals through a multi channel distribution network
and superior technology.
Our Endeavour will be to provide constant value addition to
customers throughout their relationship with us, within the
regulatory framework. We will provide career development
opportunities to our employees and the highest possible returns to
our shareholders.
VALUES Integrity
Commitment
Passion
Seamlessness
Speed
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT
PORTFOLIO IS BORNE BY THE POLICYHOLDERWith Bajaj Allianz Unit Gain Plus Gold we have formulated a
unique combination of protection and prospects of attractive returns
with investment in various mixes of securities to make a perfect plan
to last you a lifetime of prosperity and happiness.
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Some of the key features of this plan are:
Guaranteed life cover, with a flexibility to choose insurance cover
according to your changing needs.
Presenting a unique investment Asset Allocation Fund whereinyou have not to worry to switch funds in case market condition
changes rather our experienced Fund Managers will monitor the mix
of assets in the fund and will manage the mix in such situations to
maximize your returns.
If you want to manage the mix of assets for your policy on your
own, you have the choice of 5 other investment funds with complete
flexibility to switch money from one fund to other to manage your
investments better.
Your policy continues to participate in investment performance of
the fund(s) even if you are not able to pay 3 full years premium.
Get maturity value equal to the Fund Value at maturity date or inperiodic installments spread over a maximum period of five years.
A host of optional additional rider benefits which includes
assurance to your family with family income benefit and waiver of
premium benefit.
How does the plan work?
Premiums paid by you, net of premium allocation charge, areinvested in fund(s) of your choice and units are allocated depending
on the unit price of the fund(s). The value of your policy is the total
value of units that you hold in the fund(s). The insurance cover
charges, policy administration charges and the additional rider
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benefit charges (if any) are deducted through monthly cancellation
of units. Fund Management Charge is priced in the unit value.
{5.2} ICICI Prudential Life Insurance
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 was established in 1955 to lend money for
industrial development. Today, it has diversified into retail banking
and is the largest private bank in the country. Prudential plc was
established in 1848 and is presently the largest life insurance
company in the UK.
For the financial year ended March 31, 2005, the company garnered
Rs 1584 crore of new business premium for a total sum assured of
Rs 13,780 crore and wrote nearly 615,000 policies.
ICICI Prudential Life Insurance Company is a joint venture betweenICICI Bank, a premier financial powerhouse, and prudential plc, aleading international financial services group headquartered in the
United Kingdom. ICICI Prudential was amongst the first private sectorinsurance companies to begin operations in December 2000 afterreceiving approval from Insurance Regulatory Development Authority(IRDA).
ICICI Prudential's equity base stands at Rs. 925 crore with ICICI Bank
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and Prudential plc holding 74% and 26% stake respectively. In thefinancial year ended March 31, 2005, the company garnered Rs 1584crore of new business premium for a total sum assured of Rs 13,780crore and wrote nearly 615,000 policies. For the past four years, ICICI
Prudential has retained its position as the No. 1 private life insurer inthe country, with a wide range of flexible products that meet the needs
of the Indian customer at every step in life. To know more about thecompany, please visit www.iciciprulife.com.
DISTRIBUTION
ICICI Prudential has one of the largest distribution networks
amongst private life insurers in India, having commenced operations
in 74 cities and towns in India.
The company has seven banc assurance tie-ups, having agreements
with ICICI Bank, Federal Bank, South Indian Bank, Bank of India,
Lord Krishna Bank and some co-operative banks, as well as over
150 corporate agents and brokers. It has also tied up with NGOs,
MFIs and corporatist for the distribution of rural policies and
organizations like Dhan for distribution of Salaam Zindagi, a policy
for the socially and economically underprivileged sections of
society.
ICICI Prudential has recruited and trained about 56,000 insurance
advisors to interface with and advise customers. Further, it leverages
its state-of-the-art IT infrastructure to provide superior quality ofservice to customers.
NEW DELHI: ICICI Prudential Life Insurance launched a platform
for senior citizens in partnership with Dignity Foundation, providing
them a forum to engage in productive activities.
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"While financial independence is a key determinant for a satisfying
life post retirement, it is not the only factor that promises quality life
at that stage... Through Active Age, we will enable senior citizens to
lead a more active, wholesome life and age productively," ICICIPrudential managing director Shikha Sharma said in a statement.
{4.3} Bajaj allianz life insurance
Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between twoleading conglomerates- Allianz AG, one of the world's largest
insurance companies, and Bajaj Auto, one of the biggest 2 and 3
wheeler manufacturers in the world.
Bajaj Allianz Life Insurance
Over 40,00,000 satisfied customers
A countrywide network of 876 officesAssets under management Rs. 5,500 cr.
Shareholder capital base of Rs. 700 cr.
VisionBajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj
group is the largest manufacturer of two-wheelers and three-
wheelers in India and one of the largest in the world.
(Additional protection for you and your family):
Bajaj Allianz Life Insurance offers you the flexibility to enhance
your basic insurance policy by attaching additional benefits that give
more protection to you and your family. You can choose to take all
http://www.allianzbajaj.co.in/lifeinsurance/products/add_benefit_new.pdfhttp://www.allianzbajaj.co.in/lifeinsurance/products/add_benefit_new.pdfhttp://www.allianzbajaj.co.in/lifeinsurance/products/add_benefit_new.pdfhttp://www.allianzbajaj.co.in/lifeinsurance/products/add_benefit_new.pdf7/31/2019 Reliance Life Insurance vs Competitors
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or some of the additional benefits. Bajaj Allianz Life Insurance
allows you to redesign your life insurance coverage to suit your
needs, providing total protection against these uncertainties.
Growing at a breakneck pace with a strong pan Indian presence
Bajaj Allianz Life Insurance has emerged as a strong player in
India...
Bajaj Allianz Life Insurance Company Limited is a joint venture
between two leading conglomerates Allianz AG and Bajaj Auto
Limited.
Characterized by global presence with a local focus and driven by
customer orientation to establish high earnings potential and
financial strength, Bajaj Allianz Life Insurance Co. Ltd. was
incorporated on 12th March 2001. The company received theInsurance Regulatory and Development Authority (IRDA)
certificate of Registration (R3) No 116 on 3rd August 2001 to
conduct Life Insurance business in India.
Bajaj Allianz Life Insurance
Product tailored to suit your needs
Decentralized organization structure for faster responseWide reach to serve you better a nationwide network of 876
branches
Specialized departments for Banc assurance, Corporate
Agency and Group Business
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Well networked Customer Care Centers (CCCs) with state of
art IT systems
Highest standard of customer service & simplified claims
process in the industry
ANALYSIS of PREMIUM
PLAN PREMIUM SUM ASSURED
Min. Max. Min. Max.Reliance
Automatic
Investment Plan
10,000 20,000 Annualized
premium for
5years or
annualized
premium for
half of the
policy term,
whichever
higher
No limit
Bajaj allianz unit
gain plus gold
plan
12,000 No
limit
50% of your
total premium
50% of total
premium
Birla Sun Life
Insurance Gold-
Plus
10,000 No
limit
5 x annual
premium
Will be
decide on
the basis of
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maturity
years
HDFC Standard
life insurance term
plan
10,000 No
limit
10,00,000 basis of
maturity
years
ANALYSIS of POLICY TERM
PLAN MINIUM MAXIMUM
Reliance Automatic
Investment Plan
5 years 30 years
Bajaj allianz unit gain plusgold plan
10 years Up to maximummaturity age
(70years)
Birla Sun Life Insurance Gold-
Plus
8 years 8 years
HDFC Standard life insurance
term plan
5 years 30 years
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ANALYSIS of AGE
PLAN AGE AT ENTRY AGE AT MATURITY
MIN. MAX. MIN. MAX.Reliance
Automatic
Investment
Plan
30 days 65 years 18 years 80 years
Bajaj allianz
unit gain plus
gold plan
0 years 60 years 18 years 70 years
Birla Sun
Life
Insurance
Gold-Plus
18 years 70 years 25 years 65 years
HDFC
Standard life
insuranceterm plan
18 years 60 years 18 years 65 years
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(VI)
ABBREVIATIONS
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OJT ON JOB TRAINING
NAV NET ASSET VALUE
MF MUTUAL FUNDS
EDLI EMPLOYEE'S DEPOSIT LINKED INSURANCE
SCHEME
MRP RELIANCE MARKET RETURN PLAN
GYP - RELIANCE GOLDEN YEARS PLAN
GSA - RELIANCE GROUP SUPERANNUATION PLAN
GG - RELIANCE GROUP GRATUITY PLAN
MGP - RELIANCE MONEY GUARANTEE PLAN
AIP - RELIANCE AUTOMATIC INVESTMENT PLAN
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(VII)
METHODOLOGY
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Preparing this report is not been a easy task for me .forpreparing it I had adopted the below methodology:
(a) Collection of the data:-
A survey was conducted of the People who want to
cover their risk of life.
The people working in many institutions were
interviewed and information was gathered.
Secondly the customers were interviewed randomly
about the income tax saving and their preferences.
For this purpose a questionnaire was prepared
(a)The survey was conducted in the market of:
Industrial Zones:
Government offices
Private Institutions
Kota citizensSamples under study:
General people were surveyed randomly.
Sample size:
300 PEOPLES
(b)Analyzing the collected information:-
This involved converting raw data into useful information.
(c) Report finding & suggesting recommendation:-This phase marked the accumulation of the data & analyzes
part of it. This report with the finding is a formal written
document. The analyzed data and personal experience were
used to propose the recommendations
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How many persons want to understand about the equitymarket ?
GRAPH NO. 2
Above graph is showing that how many persons want tounderstand the current life Insurance market which is
shown in % i.e.61% are interested and 39% are not
interested.
Persons interested in knowing
About current life insurance plant
Not
interested61%
Interested
39%
1
2
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How many takes current life Insurance Plans ?
GRAPH NO. 3
Above graph is showing that how many persons Howmany
takes current life Insurance Plans which is shown in % i.e.
32% takes current life insurance plans and 68% dont
current life insurance plans.
Dont take
68%
Takes
32%1
2
How many takes current life
Insurance Plans
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LIMITATION
The limitations that were faced in conducting the research
were as under.
1. Information That I gathered through filling up of a
Questionnaire took a bit of time and responds found itwastage of time so I convinced them sometimes.
2. Constraints of resources including time
3. Some of customers were unavailable at the time of the
survey.
4. Within these 4 month the service level has improved a
lot, so this data might show some errors.
5. Some responds show some bias towards some answers.
6. I had done my project on a sample size of 300 out of the
people in Hadoti. So this may show some errors in the
finding in the report.
7. All the company is providing different allocation
charges according to customers but we cant cut shot our
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allocation charges as compare to another life insurance
companies.
SUGGESTIONS
Based on the study of the market and interacting with lots
of people. I found that people are happy with the
RELIANCE LIFE INSURANCE .But there are some areas
of improvement so that RELIANCE LIFE INSURANCEcan get fast customer growth.
FOLLOWING ARE THE SUGGESTIONS
1. Proper communication is indeed to trade the various
sales promotion schemes.
2. There should be proper Team is required to open more
account.
3. Should open more DSA in small cities.
4. They should be more flexible for allocation concern, to
capture more market shares this is much required to they
can cut allocation for competitive market in Kota city.
5. One more thing is required for RELIANCE LIFE
INSRANCE they take much time activate policy. This
Reason makes negative effect on customers mind set up.
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REFERENCES
I given to thanks company guide Mr.vivek sharma is very
helpful person for given the brief information to me.
I also given to thanks faculty guide Dr. RITU SINGH for help
me to complete this project.
I collect more information from Reliance website in respect ofmy project.
Market is the big source for collecting information to this project.
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STRATEGY AND TASK DESIGN
First of all I make a task design, which I have to perform
Steps are as follows-
1. Identify the objective
2. Analyze the target customer3. Collection of data to identify target customers
4. Making a call
5. Evaluation
1.Identify the objective-firstly identify my objective, which is
recruitment of advisors & Selling of policy.
2.Analyze the target customer-persons those are interested toinvest their money or to get risk cover in bad conditions, I have a list
of large no. of plans. & who are unemployed, who wants to gain
experience along with their studies, persons who are interested in
insurance sector and others who want to earn extra money along
with their studies. Mainly my target customers are
Students of B.A, BSC, B.COM, 12
Marketing executive
Part time workers House wives
Socialized person
Educated but unemployed person
Students of professional courses.
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3.Collection of data to identify target customer-collect data
through colleges and school records, telephonic survey, door-to-
door survey, placement agencies, contacts, relatives who are
interested to do this work as a source of extra income.
1. Making a call -After identify my target market then I contact
the related person through telephone and through personal
meet. Then I give presentation in front of them, I tell them
about my company, what are the benefits to work as an
advisor, I attract the customers according to their needs like
for MBA students I tell them about experience & who want to
invest their money, Reliance have really beneficial plans of
reliance life insurance policies.
Evaluation- Sometimes my call doesnt successful like I make 5
calls and no single call convert into the warm call, then I evaluate
what was the shortcomings and what was the reason behind it, and if
there is something wrong I will try to rectify it.
1. Attracting the unemployed pool with the brand name
of reliance-persons who are not investing their money in
any company it is very beneficial for them that reliance has
been come in investment market. With the brand name of
Reliance there must not be fear for customers. First I
made the customer understand that our plans are verybeneficial for them, and then I give plans to them.
.
Preexperience-students who are doing professional courses like
MBA, ICAW, C.A, and C.S they can get preexperience of insurance
sector. When they go for the job it will help them to get good job.
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CONCLUSION1. Now days customer wants to get benefits early and Reliance Life
Insurance is giving the minimum term plan.
2. Now Days no one wants to invest lot of money for 5 years and
Reliance Life Insurance has maximum limit of Rs. 20,000 in
Term plan.
3. Reliance Life Insurance has very low age of entry in term plan
that is 30 days and very high age of entry that is 80 years.