Professional Documents
Culture Documents
Reliance Life Insurance
Reliance Life Insurance
PROJECT REPORT ON
SUBMITTED BY:-
STELLA BALASUBRAMANIAM
(SEMESTER-VI)
(2013-2014)
PROJECT GUIDE:-
of Mumbai.
External Examiner
DECLARATION:-
Like every project needs direction this one is no exception. I would therefore, like to
express my sincere gratitude to UMA DURGUDE for helping me in this project. Her
valuable suggestions and insights have helped achieve much more than what was
conceived of the project at its inception. I would also like to thank my friends who
were also a great support while working on the project. I am sincerely thankful to our
coordinator Mrs. SHERAWATI JAYRAJAN for her unconditional support and
valuable thoughts. Her guidance and encouragement have been instrumental in
making this project a learning experience. I am grateful to ORIENTAL Library for
helping me and providing me with so many facilities without the help of which the
completion of this project would not have been possible.
I believe the project would have been incomplete without their support.
EXECUTIVE SUMMARY:-
This was after obtaining the required regulatory approvals from the Registrar of
Companies and the Insurance Regulatory and Development Authority.
Reliance Life Insurance is the part of the Reliance Capital. Reliance Life
Insurance has plenty of plans on the anvil.
It has also 118 branches, with strong presence in South and a bouquet of
products catering savings protection and investment need of individuals and
corporate.
The company has already added 600 employees in addition to the 1000 plus
staff of the erstwhile AMP Sanmar Life Insurance Company Limited.
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RELIANCE LIFE INSURANCE:-
SECTION – 1
INTRODUCTION:-
Reliance Life Insurance offers you products that fulfill your savings and protection needs.
Our aim is to emerge as a transnational Life Insurer of global scale and standard.
Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of Reliance -
Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector
financial services companies, and ranks among the top 3 private sector financial services and
banking companies, in terms of net worth. Reliance Capital has interests in asset management
and mutual funds, stock broking, life and general insurance, proprietary investments, private
equity and other activities in financial services.
OBJECTIVES OF LIFE INSURANCE:-
• Spread Life Insurance widely and in particular to the rural areas and to the socially
and economically backward classes with a view to reaching all insurable persons in
the country and providing them adequate financial cover against death at a reasonable
cost.
• Bear in mind, in the investment of funds, the primary obligation to its policyholders,
whose money it holds in trust, without losing sight of the interest of the community as
a whole; the funds to be deployed to the best advantage of the investors as well as the
community as a whole, keeping in view national priorities and obligations of
attractive return.
• Conduct business with utmost economy and with the full realization that the moneys
belong to the policyholders.
• Act as trustees of the insured public in their individual and collective capacities.
• Meet the various life insurance needs of the community that would arise in the
changing social and economic environment.
• Involve all people working in the Corporation to the best of their capability in
furthering the interests of the insured public by providing efficient service with
courtesy.
Promote amongst all agents and employees of the Corporation a sense of participation, pride
and job satisfaction through discharge of their duties with dedication towards achievement of
Corporate Objective.
R E L IA N C E L IF E
IN S U R A N C E P L A N S
• C H IL D P L A N
• P R O T E C T IO N P L A N
• S A V IN G P L A N
• R E T IR E M E N T P L A N
PROTECTION PLAN:-
Reliance Term Plan:-
Invest in the Reliance Term Plan, a pure life insurance plan that offers you comprehensive
and affordable coverage for a limited period of time to suit your needs.
Optima:-
Pay online via credit card or net banking. Just log into your Lifeline
Account.
SBI:- Your premiums on the go, in 3 easy steps!
*Temporarily this payment service is unavailable till further notice by RBI.
ECS:- Instruct your favorites bank to pay your premiums directly from your account.
CREDIT CARD:- Never miss a payment! Have your premium debited from your credit
card on the due date.
Nearest branch:- Visit your nearest Reliance Life Insurance branch and pay over the
counter!
Easy Bill Outlets:- you have the option of paying your Renewal Premium by cheque at
any of the Easy Bill Outlet located in your account.
Bill Desk:-
Pay Online, Log into your Bill desk account and authorize your payments.
Bill Junction:-
Pay Online, Log into your Bill Junction account and auth.
CAREER OF RELIANCE:-
Our Belief
We believe that you are the force behind the company. And with your growth will come the
drive that can take this company to higher and stronger levels. Creating a huge wave of
satisfaction, not only for our customers and us, but for your career.
Why Us?
Whatever your career goal, Reliance Life Insurance is a company big enough for your
dreams. We, along with the other businesses of Reliance Capital, enjoy a strong position in
the financial services category. And this may be the place where you can have the career you
always wanted.
We endeavor to be unique in creating an environment that makes pitting your skills against
the world a challenging, stimulating and energizing experience.
Here, we believe that bigger the challenges that we set for ourselves, the higher they will take
us. And finding resonance with this credo is our ever-increase.
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
Reliance - Anil Dhirubhai Ambani Group. Reliance Life Insurance is another step forward
for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and
Corporates.
Reliance Capital Ltd. is one of India’s 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. Reliance Capital Ltd. has interests in asset management,
life and general insurance, private equity and proprietary investments, stock broking and
other financial services.
ACHIEVEMENTS OF RELIANCE LIFE INSURANCE:-
• RLIC closed the last financial year with a New Business Premium of Rs 3513
Crores.
• For 3 successive years, since inception, the Company has been amongst the fastest
growing Companies in the Life Insurance Industry achieving a growth rate of 28%
in the last financial year against a market growth of -6%. In the Individual Business
segment, the company achieved a growth rate of 59% in terms of WRP against the
private industry growth of 1%.
• Reliance Life has been one of the fastest gainers in market share growing from 1.9%
amongst private players in Mar'06 to 10.3% as of Mar'09. This has resulted in the
Company growing to becoming the 4th largest private player in just two years
starting at position of 11.
• The Company has been the fastest company to reach the 3 million policy mark and
was the 3rd largest private insurer in terms of Policy count in 2008-09
• Reliance Life has accomplished a large distribution ramp-up in the Industry in a short
span of time by opening 1145 branches in just over 2 year.
• Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007- Certificate of Merit
in the Financial Services category by Council for Fair Business Practices (CFBP).
The Company has also won the DL Shah Quality Council of India Commendation
Award in the services category in Feb 2008 for its work on promoting 'self help channels
for service'
DIRECTORS OF RELIANCE LIFE INSURANCE:-
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
organizations such as M/s. Bansi S. Mehta, RSM & Co. and Ambit Corporate Finance Pvt.
Ltd. 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 1982–83. 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 organizations 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 organizations 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.
Saumen 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, Saumen was responsible for the overall Allianz operations
in India and Middle East.
LIC PLANS:-
INSURANCE PLANS
PENSION PLAN
UNIT PLAN
INSURANCE PLANS:-
As individuals it is inherent to differ. Each individual’s insurance needs and requirements are
different from that of the others. LIC’s Insurance Plans are policies that talk to you
individually and give you the most suitable options that can fit your requirement.
Jeevan Anurag
Jeevan Kishore
Jeevan Aadhar
Jeevan Vishwas
Jeevan Anand
Jeevan Shree-I
Jeevan Pramukh
PENSION PLAN:-
Pension Plans are Individual Plans that gaze into your future and foresee financial stability
during your old age. These policies are most suited for senior citizens and those planning a
secure future, so that you never give up on the best things in life.
Jeevan Nidhi
Jeevan Akshay-VI
Overview:-
The largest life insurance company in India, Life
Insurance Corporation is fully owned by the
government. It provides individual life insurance, group
insurance and pension plans. Its subsidiaries include
Life Insurance Corporation of India International, LIC
Nepal, LIC Lanka, LIC Housing Finance and LICHFL
Care Homes. It has over 12 million policy holders and
over 9 lakh agents. It has underwritten more than 120
million policies.
SECTION-4
Insurance is an attractive option for investment. While most people recognize the risk
hedging and tax saving potential of insurance, many are not aware of its advantages as an
investment option as well. Insurance products yield more compared to regular investment
options, and this is besides the added incentives (read bonuses) offered by insurers.
You cannot compare an insurance product with other investment schemes for the simple
reason that it offers financial protection from risks, something that is missing in non-
insurance products.
In fact, the premium you pay for an insurance policy is an investment against risk. Thus,
before comparing with other schemes, you must accept that a part of the total amount
invested in life insurance goes towards providing for the risk cover, while the rest is used for
savings.
In life insurance, unlike non-life products, you get maturity benefits on survival at the end of
the term. In other words, if you take a life insurance policy for 20 years and survive the term,
the amount invested as premium in the policy will come back to you with added returns. In
the unfortunate event of death within the tenure of the policy, the family of the deceased will
receive the sum assured.
Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF,
your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the
access to your funds will be limited. One can withdraw 50 per cent of the initial deposit only
after 4 years.
The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-
12 lakh (depending upon the plan, age and medical condition of the life insured, etc) and this
amount can become immediately available to the nominee of the policyholder on death.
Thus insurance is a unique investment avenue that delivers sound returns in addition to
protection.
Insurance is an attractive option for investment. While most people recognize the risk
hedging and tax saving potential of insurance, many are not aware of its advantages as an
investment option as well. Insurance products yield more compared to regular investment
options, and this is besides the added incentives (read bonuses) offered by insurers.
You cannot compare an insurance product with other investment schemes for the simple
reason that it offers financial protection from risks, something that is missing in non-
insurance products.
In fact, the premium you pay for an insurance policy is an investment against risk. Thus,
before comparing with other schemes, you must accept that a part of the total amount
invested in life insurance goes towards providing for the risk cover, while the rest is used for
savings.
In life insurance, unlike non-life products, you get maturity benefits on survival at the end of
the term. In other words, if you take a life insurance policy for 20 years and survive the term,
the amount invested as premium in the policy will come back to you with added returns. In
the unfortunate event of death within the tenure of the policy, the family of the deceased will
receive the sum assured.
Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF,
your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the
access to your funds will be limited. One can withdraw 50 per cent of the initial deposit only
after 4 years.
The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-
12 lakh (depending upon the plan, age and medical condition of the life insured, etc) and this
amount can become immediately available to the nominee of the policyholder on death.
Thus insurance is a unique investment avenue that delivers sound returns in addition to
protection.
Permanent insurance:-
Life Insurance is an expensive Policy. This Policy cannot be stopped on any occasion as
long as the premiums are paid regularly and you don't want to end the policy. In a
permanent Life Insurance policy you pay premiums for an indefinite period
irrespective of the fact they exceed the amount to be distributed to your dependents
in case of death.
Such surplus will be deposited by the company in a separate account. They will
yield higher returns if the company performs well. A share of the profits is
periodically dispatched to you. You have the option of raising loans out of those
funds or accumulate them back in the account. In case you decide to end the policy
you will paid back with the surrender value .If the insurer decides to retain the
profits made from your investment with him then you are not required to pay
income tax for that amount. There is a possibility like, when you withdraw certain
amount of money within the given limit you need not pay income tax for that
amount. But when you deposit money in the bank you have to pay income tax
irrespective of the fact you utilize it or not.
If the insurer decides to retain the profits made from your investment with him then
you are not required to pay income tax for that amount. There is a possibility like,
when you withdraw certain amount of money within the given limit you need not
pay income tax for that amount. But when you deposit money in the bank you have
to pay income tax irrespective of the fact you utilize it or not.
HDFC Standard Life Insurance is a new Indian life insurance company that operates out of
52 locations. It offers clients a range of insurance plans to meet their savings, investment and
protection needs. In the financial year 2002-03, the company registered a year-on-year
growth of over 260%. It is also the first new life insurance company to declare its third
successive bonus for participating policy holders.
The company's growing pains. In order to survive in the insurance segment, HDFC had to
introduce new products. They wanted to launch a Unit Linked Insurance Scheme in 2
months. They were looking for a robust and integrated solution to support the new product.
HDFC was also facing numerous problems with their current systems in terms of
performance, reliability and scalability. IBM was the right choice.
The IBM solution. The financial community in India and all over the world had opted for the
IBM e Server I Series. HDFC Standard Life Insurance decided to do.
the same. The solution recommended by IBM included an server I Series model 810
Enterprise Edition for production and a Model 800 Standard for testing and development.
Both the systems currently run LifeAsia/400.
The result - Life is secure. With CSC Life Asia and the series, HDFC could complete
projects much ahead of their deadlines. They found the IBM I Series a highly integrated
system that made implementation faster and more efficient.
ORIGIN OF HDFC LIFE INSURANCE:-
HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint
venture between Housing Development Finance Corporation Limited (HDFC Ltd.)
India and UK based Standard Life Company. Both the joint venture partners being one of
the leaders in their respective areas came together in this 81.4:18.6 joint venture to form
HDFC Standard Life Insurance Company Limited.
The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has given the company
new directions and has helped the company achieve the status it currently enjoys. HDFC
Standard Life brings to you a whole range of insurance solutions be it group or individual or
NAV services for corporations; they can be easily customized as per specific needs.
HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by
March'2007. The gross incomes standing at a whopping Rs. 2, 856 Crores, HDFC Standard
Life Insurance Corporation is sure to become one of the leaders and the first preference for
any life insurance customer.
The Banc assurance partners of HDFC Standard Life Insurance Co Ltd are HDFC, HDFC
Bank India Limited, Union Bank of India, Indian Bank, Bank of Baroda, Sara swat Bank and
Bajaj Capital.
Factors Affecting Insurance Quotes:-
Some of the factors that affect life insurance quotes are as follows
Health:-
This happens to be an important parameter not only for life insurance but also for other form
of insurance like disability insurance, health insurance. The health of a person is inversely
directly proportional to the insurance premiums. A person who enjoys a good health will
generally pay a lower insurance compared with the person who suffers from some sort of
chronic illness and fatal disease.
This factor has a close relation with the previous one. The age of a person speaks for his
health the number of years he is expected to live and so on. A young person is likely to pay
lesser premium. The reverse is also equally true. A person with higher income may not be
expected to pay a higher premium because his payments are guaranteed. This is also to
decide term life insurance quotes and affordable life insurance quotes.
Physical Features:-
However the insurer levies a moderate amount of premiums as far as person with lower incomes are
considered to ensure that there is a prompt settlement of premiums. Similarly there is no
upper limit for a person with higher income. The insurance company will accept any
amount that he is willing to pay as long as they fall in line with the policy rules and
regulations or are not forbidden by any other contract of law operating in this context.
Some factors like height and weight have a great role to play in deciding an insurance quote.
Insurance companies also require the insured to meet certain minimum requirements in some
cases. These stipulations are to help the insurer in deciding the life insurance quote on the
basis of physical features that have a reasonable influence on the life span of an individual
either directly or indirectly.
Family Details:-
The insurer also considers the marital status of the individual, the number of children and
dependents. In addition the health history of the family and dependents will also be collected.
The premium tends to be higher as long as the number of dependents and family members
are high. The medical history of the family members and dependents influences the rate of
premiums.
SECTION-6
Bajaj Allianz Life Insurance Co Ltd is a unique joint venture among the global giants Allianz
Group (AG) and Bajaj Auto. Allianz AG's world ranking establishes it among the top
insurance companies in the world. Bajaj is the biggest two and three wheeler manufacturer in
the world. Bajaj Allianz Life Insurance Company boasts of a nationwide presence with 876
offices and over 4 million satisfied customers. The various insurance products ARE:
Individuals Plans:-
Bajaj Allianz India offers convenient premium payment and receipt options. The payments
can be direct through cheques, DD's or directly from your accounts or through credit card.
The premiums can also be paid online. The insurance policy holders who also have an
account with Standard Chartered Bank can avail the direct debit mandate facility.
The Bajaj Allianz Life Insurance website offers human life value estimator, child education
cost calculator, retirement solutions and required pension estimator and premium calculator
online. The Bajaj Allianz insurance agents will guide you about the general life insurance
policies best suited to your needs. The insurance agent also briefs you about the insurance
quote and the terms on the policy quotes.
Allianz Bajaj Life Insurance Company Limited:-
Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated in 1945 as Bachraj
Trading Corporation. Initially it started by assembling two and three wheelers in
collaboration with Piaggio of Italy. After the expiry of the agreement in 1971 the two and
three wheelers acquired the brand name of Bajaj. The strength of the company lies in its
strong brand image and ability to offer value for money products leveraging on its large-scale
operations.
Allianz AG:-
Allianz group was founded in 1890 and is one of the world's leading insurance companies
with over 100 years' experience in insurance and related services. It is also the largest insurer
in Europe. Allianz group has multi-local structure and presence in over 70 countries. The key
business areas of Allianz group include General Insurance (property, engineering, marine,
motor, casualty and miscellaneous), Reinsurance, Risk Management, Life & health
insurance, Asset Management and Pension Funds Management.
Cornhill Insurance in the United Kingdom, Fireman's Fund in the United States of America,
AGF in France, RAS spa in Italy, MMI in Australia are some companies under Allianz
group. Rated 'AAA' by S&P it has assets over 670 billion DM (Rs. 17,160 billion) under its
management with employee strength of over 1,05,700..
SECTION-7
Human life is subject to risks of death and disability due to natural and accidental causes.
When human life is lost or a person is disabled permanently or temporarily, there is a loss of
income to the household. The family is put to hardship. Sometimes, survival itself is at stake
for the dependants. Risks are unpredictable. Death/disability may occur when one least
expects it. An individual can protect himself or herself against such contingencies through
life insurance.
Life insurance is insurance on human beings. Though Human life cannot be valued, a
monetary sum could be determined which is based on loss of income in future years. Hence
in life insurance, the Sum Assured (or the amount guaranteed to be paid in the event of a
loss) is by way of a ‘benefit’ in the case of life insurance. Life insurance products provide a
definite amount of money to the dependants of the insured in case the life insured dies during
his active income earning period or becomes disabled on account of an accident causing
reduction/complete loss in his income earnings.
An individual can also protect his old age when he ceases to earn and has no other means of
income – by purchasing an annuity product.
There are a number of life insurance products which offer protection and also coupled with
savings.
A term insurance product provides a fixed amount of money on death during the period of
contract.
A whole life insurance product provides a fixed amount of money on death.
An Endowment Assurance product provided a fixed amount of money either on death during
the period of contract or at the expiry of contract if life assured is alive.
A money back assurance product provides not only fixed amounts which are payable on
specified dates during the period of contract, but also the full amount of money assured on
death during the period of contract.
An annuity product provides a series of monthly payments on stipulated dates provided that
the life assured is alive on the stipulated dates.
A linked product provides not only a fixed amount of money on death but also sums of
money which are linked with the underlying value of assets on the desired dates.
There are a variety of life insurance products to suit to the needs of various categories of
people—children, youth, women, middle-aged persons, old people; and also rural people,
film actors and unorganized labourers.
Life insurance products could be purchased from registered life insurers notified by the
IRDA. Insurers appoint insurance agents to sell their products. Public who are interested to
buy life insurance products should receive proper advice from insurance agents/insurer so
that a right product could be chosen to suit particular financial needs.
Thus life insurance policies offer protection and security to families and provide happiness to
society.
LIFE INSURANCE CORPORTION:-
The Life Insurance Corporation (LIC) of India founded in 1956 is the largest life
insurance company in India owned solely by the Government of India. Headquartered in
Mumbai, which is considered the financial capital of India, LIC presently has 7 Zonal
Offices and 100 Divisional Offices situated all around the country. In addition to an even
distribution of 2048 branches located in different towns and cities of India, LIC also has a
network of around one million agents.
Life Insurance is insurance for you and your family's peace of mind. Life insurance is a
policy that people buy from a life insurance company, which can be the basis of protection
and financial stability after one's death. Its function is to help beneficiaries financially after
the owner of the policy dies.
It can also be a form of savings in the long run if you purchase a plan, which offers the
option of contributing regularly. Additionally, a little known function of life insurance is that
it can be tied in with a person's pension plan. A person can make contributions to a pension
that is funded by a life insurance company. These are considered PRIVATE PENSION
HISTORY OF LIFE INSURANCE:-
The first two decades of the twentieth century saw lot of growth Life Insurance in its modern
form came to India from England in the year 1818. Oriental Life Insurance Company started
by Europeans in Calcutta was the first life insurance company on Indian Soil. All the
insurance companies established during that period were brought up with the purpose of
looking after the needs of European community and Indian natives were not being insured by
these companies. However, later with the efforts of eminent people like Babu Muttylal Seal,
the foreign life insurance companies started insuring Indian lives. But Indian lives were being
treated as sub-standard lives and heavy extra premiums were being charged on them.
Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance
company in the year 1870, and covered Indian lives at normal rates. Starting as Indian
enterprise with highly patriotic motives, insurance companies came into existence to carry
the message of insurance and social security through insurance to various sectors of society.
Bharat Insurance Company (1896) was also one of such companies inspired by nationalism.
The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United
India in Madras, National Indian and National Insurance in Calcutta and the Co-operative
Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance
Company took its birth in one of the rooms of the Jorasanko, house of the great poet
Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi
Life (later Bombay Life) were some of the companies established during the same period.
Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the
Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance
Companies Act, 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated between
foreign and Indian companies on many accounts, putting the Indian companies at a
disadvantage in insurance business. From 44 companies with total business-in-force as
Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938.
During the mushrooming of insurance companies many financially unsound concerns were
also floated which failed miserably. The Insurance Act 1938 was the first legislation
governing not only life insurance but also non-life insurance to provide strict state control
over insurance business. The demand for nationalization of life insurance industry was made
repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life
Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later
on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian
insurance companies, 16 non-Indian companies and 75 provident were operating in India at
the time of nationalization. Nationalization was accomplished in two stages; initially the
management of the companies was taken over by means of an Ordinance, and later, the
ownership too by means of a comprehensive bill. The Parliament of India passed the Life
Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of
India was created on 1st September, 1956, with the objective of spreading life insurance
much more widely and in particular to the rural areas with a view to reach all insurable
persons in the country, providing them adequate financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate
office in the year 1956. Since life insurance contracts are long term contracts and during the
currency of the policy it requires a variety of services need was felt in the later years to
expand the operations and place a branch office at each district headquarter. Re-organization
of LIC took place and large numbers of new branch offices were opened. As a result of re-
organization servicing functions were transferred to the branches, and branches were made
accounting units. It worked wonders with the performance of the corporation. It may be seen
that from about 200.00 Crores of New Business in 1957 the corporation crossed 1000.00
Crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore
mark of new business. But with re-organization happening in the early eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7
zonal offices and the corporate office. LIC’s Wide Area Network covers 100 divisional
offices and connects.
TYPES OF LIFE INSURANCE:-
• A term insurance policy is a pure risk cover for a specified period of time. What this
means is that the sum assured is payable only if the policyholder dies within the
policy term. For instance, if a person buys Rs 2 lakh policy for 15-years, his family is
entitled to the money if he dies within that 15-year period.
• What if he survives the 15-year period? Well, then he is not entitled to any payment;
the insurance company keeps the entire premium paid during the 15-year period.
Whole Life Policy:-
As the name suggests, a Whole Life Policy is an insurance cover against , irrespective of
when it happens.
Under this plan, the policyholder pays regular premiums until his death, following which the
money is handed over to his family.
This policy, however, fails to address the additional needs of the insured during his post-
retirement years. It doesn't take into account a person's increasing needs either. While the
insured buys the policy at a young age, his requirements increase over time. By the time he
dies, the value of the sum assured is too low to meet his family's needs. As a result of these
drawbacks, insurance firms now offer either a modified Whole Life Policy or combine in
with another type.
ENDOWMENT POLICY:-
• In an Endowment Policy, the sum assured is payable even if the insured survives the
policy term.
• If the insured dies during the tenure of the policy, the insurance firm has to pay the
sum assured just as any other pure risk cover.
• A pure endowment policy is also a form of financial saving, whereby if the person
covered remains alive beyond the tenure of the policy, he gets back the sum assured
with some other investment benefits.
In addition to the basic policy, insurers offer various benefits such as double endowment and
marriage/ education endowment plans. The cost of such a policy is slightly higher but worth
its value.
TYPES OF LIFE INSURANCE:-
Endowment Policy.
First and foremost, insurance is about risk cover and protection - financial protection, to be
more precise - to help outlast life's unpredictable losses. Designed to safeguard against losses
suffered on account of any unforeseen event, insurance provides you with that unique sense
of security that no other form of investment provides. By buying life insurance, you buy
peace of mind and are prepared to face any financial demand that would hit the family in case
of an untimely demise.
To provide such protection, insurance firms collect contributions from many people who face
the same risk. A loss claim is paid out of the total premium collected by the insurance
companies, who act as trustees to the monies.
Insurance also provides a safeguard in the case of accidents or a drop in income after
retirement. An accident or disability can be devastating, and an insurance policy can lend
timely support to the family in such times. It also comes as a great help when you retire, in
case no untoward incident happens during the term of the policy.
With the entry of private sector players in insurance, you have a wide range of products and
services to choose from. Further, many of these can be further.
KEY FEATURES:-
. MINIMUM ISSUE AGE OF 0 (30DAYS) AND MAXIMUM AGE OF 60 YEARS WITH
MAXIMUM MATURITY AGE OF 75 YEARS.
DEATH BENEFIT
MATURITY BENEFIT
ADDITIONAL ALLOCATION
SETTLEMENT OPTION
INCOME FUND
POLICY YEAR X%
6 10
7 15
8 20
9+ NR
SWARANA JEEVAN
. CHILDREN PLAN
. HEALTH PLAN
PROTECTION PLANS:-
Protection Plans help you shield your family from uncertainties in life due to financial losses
in terms of loss of income that may dawn upon them incase of your untimely demise or
critical illness. Securing the future of one’s family is one of the most important goals of life.
Protection Plans go a long way in ensuring your family’s financial independence in the event
of your unfortunate demise or critical illness. They are all the more important if you are the
chief wage earner in your family. No matter how much you have saved or invested over the
years, sudden eventualities, such as death or critical illness, always tend to affect your family
financially apart from the huge emotional loss.
For instance, consider the example of Amit who is a healthy 25 year old guy with a income
of Rs. 1,00,000/- per annum. Let's assume his income increases at a rate of 10% per annum,
while the inflation rate is around 4%; this is how his income chart will look like, until he
retires at the age of 60 years. At 50 years of age, Amit’s real income would have been around
Rs. 10,00,000/- per annum. However, in case of Amit’s unfortunate demise at an early age of
42 years, the loss of income to his family would be nearly Rs. 5,00,000/- per annum.
Features:-
.
Advantages:-
• Lets you customize an ideal plan for your child and provide invaluable financial
support
• The Double Benefit Plan Option helps you secure your child’s immediate and future
needs. In case of your unfortunate demise, we will pay the Sum Assured to your child
(Beneficiary). Your family need not pay any further premiums and the policy
continues. And on maturity of the plan, we will pay you the Sum Assured plus
Bonuses Declared
• You can choose to pay your premium as either Annually, Half-Yearly or Quarterly
depending on your convenience. You also have a range of convenient auto premium
payment options
• Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961.
• Single Premium
• New Unit Gain Premier SP
• New Unit Gain Plus SP
Pension Plans:-
Annuity
• Pension Guarantee
• Retirement
Traditional Plans:-
• Endowment
• Invest Gain
• Save Care Economy SP
• Life Time Care
• Super Saver
• Money Back
• Cash Gain
Term Plans
• Protector
• Term Care
• New Risk Care
• House Wives
• Working Women
Health Plans
• Care First
• Health Care
• Family CareFirst
Children Plans
• Child Gain
Group Plans
• Credit Shield
• Group Term Life(Non Employer Employee)
• Group Suraksha
• Swayam Shakti Suraksha
• Group Loan Protector
• Group Income Protection
• Employer Employee
Micro Insurance
Other Plans
• Family Assure
• Fortune Plus
• Capital Shield
• Century Plus II
FINDINGS:-
SUGGESTIONS AND RECOMMENDATION:-
9. The person conducting the Interview should make sure that candidate being
interviewed shows better ability to listen, understand and answer queries.
1. T h e r e s e a r c h i s c o n f i n e d t o a c e r t a i n p a r t s o f D e l h i a n d d o e s n o t
necessarily shows a pattern applicable to all of Country.
1 .Our exhaustive research in the field of life insurance threw up some interesting trends
which can be seen in the above analysis.
2. A general impression that we gathered during data collection was the immense awareness
and knowledge among people about various companies and their insurance products.
3. People are beginning to look beyond LIC for their insurance needs and are willing to trust
private players with their hard earned money.
4. People in general have been impression by the marketing and advertising campaigns of
insurance companies.
5. A high penetration of print, radio and television ad campaigns over the years is beginning
to have its impact now.
6. The general satisfaction levels among public with regards to policy and agents still
requires improvement.
7. But there in lays the opportunity for a relative new comer likening.
8. LIC has never been known for prompt service or customer oriented methods and reliance
can build on these factors.
BIBLOGRAPHY:-
2. STUDY GUIDE-
LIFE-INSURANCE, BY MC GILL.
INSURANCE WATCH.
MONEY OUTLOOK.
3. WEBSITES REFERRED:
WWW.RELIANCE LIFE.CO.IN
WWW.CIFAINSURANCECOM
WWW.MONEYOUTLOOK.COM
WWW.INSURANCE.IND.COM