SUMMER TRAINING PROJECT REPORT ON
INSURANCE” E” “AWARENESS OF LIFE INSURANC
A dissertation submitted in partial fulfillment of the requirements For the award of Bachlor of Business Administration Integral University Kursi Road,Lucknow
Submitted To Mr. Anisu Rahman
Submitted By Ashutosh kumar rai BBA 5rd sem Roll no. 0700129006
(2007-2010)
1
PREFACE
PREFACE 2
At present insurance Sector has emerged as one of the good business amongst other, everyone wants to get insure himself / herself because nobody knows that what will happen in future. Except in everyone wants to invest the money where it increases at a desirable rate with safety. These are the reasons why insurance sector is getting the Covent of people. Now Insurance sector is expanding its wings without carrying any boundary. Large number of companies are dealing in this field and trying to encase the potential customer. Now a day the fastest growing insurance sector has also affected the very big market & share. Reli Relian ance ce life life Insu Insura ranc ncee is one one the the most most reno renown wned ed comp compan any y in insu insura ranc ncee sect sector or.. It is one one of the the Indi India’ a’ss lead leadin ing g priv privat atee life life insurance companies.
3
ACKNOWLEDGEMENT
ACKNOWLEDGEMENT 4
Success of my project depends upon two factors internal and external factor includes sincere efforts, dedication to the work and good potential whereas internal factors includes cooperation and support of Staff Members who patiently tell me about the schemes and plans of the company. I’m I’m heavi heavily ly thank thankfu full towa toward rdss H.O. H.O.D D Mr. Mr. M.S. M.S.Kha Khan n of my inst instit itute ute Integral University Lucknow, Mr. M.S.Khan who gave me this great opportunity to do this summer training project work. Good Good guidan guidance ce and coopera cooperatio tion n from from others others are such such extern external al factor factor,, which which affects the percentage of success. Though in completing this project I tried my level best but it could not be possible without proper guidance of my guide Mr. Anisu Rahman and all the faculty members of Integral University. I’m heavily indebted to Mr. Vinay Singh, Deputy Area Manager SMC Global Security Investment park road lko, for his valuable guidance and suggestions, which I sincerely value and appreciate.
Ashutosh Rai BBA (5RD Semester)
TABLE OF CONTENTS
S. No
PARTICULARS
PAGE NO 5
1-
INTRODUCTION
7
Research Objective
2-
10
Research Methodology
12
Research Process
16
Executive summary
23
COMPANY PROFILE
33
History of Reliance Life Insurance Co. Product of the Company
38
3-
RIDER
77
4-
DATA ANALYSIS
83
5-
FINDINGS
104
6-
CONCLUSION
106
7-
RECOMMENDATIONS
107
8-
SWOT ANALYSIS
109
9-
LIMITATION
112
10
ANNEXURE
114
11-
BIBLIOGRAPHY
119
6
INTRODUCTION
ANATOMY OF PROJECT FIRST OF ALL IT IS NECESSARY TO UNDERSTAND THE MEANING OF THE WORD PROJECT…. 7
(P)
“P” STANDS FOR WORD “PLANNING” WHICH DEALS WITH IDEA
OF THE THINKS, WHICH IS TO BE DONE BEFORE CONSTRUCTION OF WORK.
(R) THE
“R” STANDS FOR “OVERLOAD EXPANSDION” OVER LOAD MEANS
ESTABLISHED
EXPANISON,
WHICH
MAY
OCCUR,
IN
THE
MANUFACTURED DESIGN & LAYOUT OF THE PROJECT WORK.
(O)
“O” STANDS FOR WORD “RESOURCE” MEANS THE FUIDE THAT
HELPS TO PRESENTS THE FUNCITON OF THE PLANNED AREA OF WORK.
(J)
“J” STANDS FOR “JOINT WORK” WHICH HAS BEEN
PLANNED
TO BE DONE BY THECOMMON JOINT EFFORT THE ART WORK.
(E)
“E” STANDS FOR THE WORK “ENGINEERING” SINCE
FUNCTION
IN THE WORK IS TO BE DO0NE BY THE TECHNICAL PERSON UNDER THE GUIDE”
(C)
“C”
STANDS
FOR
“CONSTRUCTION”
WHICH
IS
VERY
NECESSARY PART OF LIFE. ( T )
“T” STANDS FOR “TECHNIQUE” SINCE UNDER THE TECHNIQUE
WORK IT IS EASY TO DESIGN A PROJECT.
8
9
RESEARCH OBJECTIVE
RESEARCH OBJECTIVE Research objective is the basis theme on which the survey is conducted and on which the whole report depends.
10
The main Objective is :
To study about the “Awareness of Life Insurance “
The sub-objectives of this survey are:
To study the investment pattern of people.
To study the investment pattern of people in life Insurance.
To observe the extent of the market.
To recognize the target groups.
To find out which type of insurance is preferred by the investors.
To study the factors responsible for the low investment in Life Insurance.
To study the different facilities of life Insurance given by different companies.
To study the risk factor involved in insurance.
To study which company is providing better services of insurance with higher returns.
To study the behavior values and beliefs of customers.
11
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
In order to carry out the study, it is important to take help of research methodology to complete the study properly.
12
PLACE OF RESEARCH- The place of research was limited to the Reliance life insurance, sitapur.
TYPE OF UNIVERSE- The universe consisted of the employees and
worker of Reliance life insurance, sitapur.
DATA COLLECTION- The direct structured questionnaire technique was adopted with a separated set of questions. The question consisted of open ended and close ended question. Including multiple choices question the other sources where the part records of the organization. Based on the data collected I have tried to make the research as accurate as possible through analysis.
PROCESSING AND ANALYSIS OF DATA-
The research is not complete with just the collection of data. The data after a collection as to be processed and analyzed in accordance with the required it has been then on the following steps-
13
1-EDITINGEditing of data process of examine the collected raw data to detect error and omission and to correct these if possible. Editing means done to assure that data is accurate in uniformly entered as possible and has been well arranged for coding and tabulation.
2- CODINGCoding refer to the process of assigning number of other symbols to answer so that responses can be put into a limited number of categories or classes, such classes should be the research problem under consideration.
3-CLASSIFICATIONMore research studies result in a large volume of row data which must be reduced into homogeneous group on the basis of following parameter-?
Job expectation.
Image of the company.
Working condition.
Performance
14
Personnel policies.
4-TABULATIONTabulation is the process of summarizing row data and displaying the same in compact from the future analysis.
15
RESEARCH PROCESS
RESEARCH PROCESS
Problem Formulation
16
Research Design
Sample Design
Data Collection Technique
Field Work
Analysis and interpretation and Research Report
In the planning of the project and survey, the entire schedule of work was divided in to 13 steps which are as follows:1-
Defining the objectives
2-
Defining the population
3-
Frame the sample units
4-
Data collection
5-
Questionnaire
6-
Methods of collecting data
7-
Non-respondent classification
8-
Selection of proper Sample size
9-
Organizing the field work
10-
Execution of the project
11-
Summery and analysis
17
12-
Information gathered for the further survey
13-
Preparation of the report
Let us understand all the 13 steps in detail:
(1)
DEFINING THE OBJECTIVE:The main objective is to find out the awareness of life insurance in general
public. This survey is conducted to depict the behavior of the people in making investment, especially in insurance.
(2)
DEALING THE POPULATION:Population refers to the total items about which the information is desired.
Here in this project I have considered finite population that is we are taking one single individual as single unit, which is fixed the 50 questionnaires, each separately by the single individual.
(3)
FRAME THE SAMPLING UNITS:The elementary units or the group of such units may form the basis of sampling
process. A list containing all such sampling frames consists of a list of items form, which the sample is to be drawn. It is often impossible to draw a sample directly from the population. In case of this project I simple located the different areas of Sitapur district and conducted a survey by taking the information in the form of questionnaire.
18
(4) DATA COLLECTION:There are several ways of collecting the data which different considerably in context of money, cost, time and other resources. In this project the data which was required gave details about the behavior of people who make investments in insurance, mutual funds, IPO, share market, etc.
(5) Questionnaire:-
To develop an effective questionnaire following points should be kept in mind:a)
Keep in view the problem to be studied.
b) Questions should be appropriate and simple and must be Constructed with a view to their forming a logical part of a well thought out tabulation plan. c) Proper sequencing of questions. d) Should be examined properly and if error found, should be removed.
e)
Pre-testing of questionnaire is necessary.
(6) METHODS OF COLLECTING DATA: Normally there are 2 methods of collecting the data a) Primary data b) Secondary data In this project we require data, which is necessary to obtain the secondary data. We have collected the information by directly communicating with the respondents though questionnaires.
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(7) NON-RESPONDENT CLASSIFICATION:It is very necessary to classify the respondents from the sample who didn’t give proper reply while conducting the research. The reason for doing this is that it may create a systematic bias.
(8)SELECTION OF PROPER SAMPLE SIZE:A sample design is a definite plan for obtaining a result from the given population. In this project the sample size is of 50.
(9) ORGANIZE THE FIELD WORK:Fieldwork is done in this project individually with no biasness. The fieldwork comprises of filling of questionnaire by different sector individuals.
(10) EXECUTION OF THE PROJECT:Proper execution of the project is important. Steps should be taken to ensure that the survey is under statistical control so that the collected information is in accordance with the pre-defined standard of accuracy.
(11) SUMMARY AND ANALYSIS OF DATA:Once the data is collected the next task is to analyze it. The raw data should be classified into some purposeful usable categories. For example: tabulation, coding, etc
20
Analysis work, after tabulation, is generally based on the computation of various percentage4s, coefficients, and etc. by applying various well-defined statistical formulae. Here in this report it is found that the investment pattern of people in private insurance companies is not satisfactory.
(12) INFORMATION GATHERED FOR FUTURE SURVEY:The information gathered for further survey is summarized as under:
Very less number of people is interested to invest in private insurance companies.
People prefer other options available of investing their money rather than Insurance.
Very less number of people, in Sitapur city, knows about RELIANCE LIFE INSURANCE and it’s working.
Maximum number of people expects “low risk with high profits” while investing in any financial product.
Almost all the people take the insurance plan from Insurance agents.
(13) PREPARATION OF THE REPORT:Final report is prepared according to the work done. Following points must be kept in mind in this regard:•
The layout
•
Report should be concise and simple
•
Proper graphs and charts must be used for the explanation.
21
•
Limitation in the report should be clearly, mentioned.
RESEARCH PROCESS ADOPTED:-
Research Area
: Sitapur
Sample Size
: 100
Primary Data collected
: Through Questionnaire
Secondary Data
: Through Internet, Brochures, Company’s issues etc.
22
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY 23
In this competitive market where customer is the king, it is important to analyze the customer perception about the product. Companies, by conducting various market researches, try to improve their products and provide customers better and more services. As without putting customers on the top no company can get success. For achieving success every company should target customers because the market is totally market oriented. The report is prepared for the partial fulfillment of MBA programmed and as a part of curriculum. The report is an attempt to find out the “Awareness of Life insurance in General Public” with special reference to “Bajaj Allianz Life Insurance Company Ltd.” This exploratory research is being conducted by survey o n the people of Sitapur. The survey was conducted through questionnaires by personally interviewing each respondent on a number of queries structured in questionnaire. The data thus collected through survey was organized in a database, which could be referred for future endorsements. The data thus collected was the subjected to analysis by a mixture of common and advanced statistical technique. The above-mentioned survey was conducted on 100 respondents. The respondents were selected from different parts of Sitapur. The respondents were taken from various sectors viz.-Servicemen, businessmen, housewives, students, etc.
24
The study has been divided into various chapters all explaining Reliance Life Insurance hegemony in the current market, its foray into the Indian market and its present conditions. It was found in the survey that many people are not of the modern Life insurance Investment Schemes. It is found that still LIC is the strongest competitor for the private insurance companies like:- Birla Sun Life, Tata AIG, HDFC, ICICI Prudential, AVIVA etc.
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(IRDA) INSURANCE
REGULATORY
AND
DEVELOPMENT AUTHORITY ACT (1999) IRDA protect the interests of holders of insurance policies, to regulate, promote and matters connected therewith or incidental thereto. It is a corporate body, It is advised by an Insurance Advisory Committee consisting of not more than 25 members to represent the interests of commerce, industry, transport, agriculture, consumer forums, surveyors, agents, intermediaries, organizations engaged in safety and loss prevention, research bodies and employees’ associations in the insurance sector. It replaces the ‘Controller of Insurance’ to administer the provision of the Insurance Act. That includes registrations, licensing, and laying down regulations for the proper conduct of the business and the protection of the interests of policyholders.
NEED BRAND NAME IN INSURANCE Branding is the new key challenge in the financial service industry; life in the 21 st century will be longer with more choice in more field of activity. The financial consequence of the increased life span is particularly likely to be touch. Inevitably, this will lead to more complexity, which in turn necessities greater clarity and appeal from the service providers.
Branding is more important in the financial services market which not only faces the problem of securing and retaining customers in an increasing competitive market
26
place but also experience the need for heightened relevance of the brand positioning in a world where brand has been termed as new religion.
TEMPORARY NEED/THREATS:
The original purpose of life insurance remains an important elements, namely for replacement of income on death etc.
REGULAR SAVINGS:
Providing for one’s family & oneself, as a medium to long term exercise (through a series of regular payment of premiums). This has become more relevant in recent times as people financial independence for their family.
INVESTMENT:
Put simply, the building up of saving while safeguarding it from the ravages of inflation. Unlike regular saving products, investment products are traditionally lump sum investment, where the individual makes a one off payment.
RETIREMENT:
27
Provision for later years becomes increasingly necessary, especially in a cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in one’s old age.
EXAMPLE TO UNDERSTAND THE NEED FOR INSURANCE There are 1000 persons who are all aged 50 and are healthy. It is expect that of these, 10 persons may die during the year. If the economic value of the loss suffered by the family of each dying person is taken to be Rs. 20,000, the total loss will work out to Rs. 2,00,000/-. This would be a enough to pay Rs. 20,000 to the family of each of the 10 persons who die. Thus, the risks in the case of 10 persons are shared by 1000 persons.
REVIEW OF INSURANCE SECTOR
India is having population of 1 billion with a middle class population estimated up to 300 million. It has being the 5th largest economy in the world in terms of purchasing Power Parity (PPP) has a GDP growth rate of over 6% per year on an average for the last decade. The saving rate is estimated to be about 26% of the GDP. In the total population, the insured the population is estimated to be about 70 million.
28
PRIVATIZATION OF INSURANCE
The Indian insurance sector has finally opened up and it is with much anticipation that new players are awaiting their share of market. License have been issued to both Indian and foreign Players- Reliance life insurance, HDFC Standard-life, Max India-New York, Royal Sundaram Alliance, ICICI Prudential, IFFCO- Tokyo marine, Bajaj allianz, Birla sunlife, Tata AIG, AVIVA Life Insurance, SBI Life, Om Kotak mahindra are some of the entrants into the newly liberalized Indian Insurance market.
ICICI Prudential and HDFC- Standard life have issued their life have issued their life policies from the private sector after 45 years.
The first move for the liberalization came with the malhotra’s Committee Report in 1993 which recommended the privatization of insurance, setting of an insurance regulatory authority and restructuring the government monopoly LIC and GIC and its subsidiaries IRDA Act passed in November 1999 had set ball rolling for the entry of private players in domestic sector.
29
LIBERALIZATION OF INSURANCE SECTOR
Liberalization commitment of the country to help in disciplining future economic policies will include the reforms. When world over insurance market has been opened up. India cannot remain in isolation. History has shown that it is very difficult to proper in isolation.
Globalization is the new economic reality, which is here to stay, healing a new era of insurance in India. With the opening of the insurance industry, India stands to gain with the following major advantages.
•
Globalization will provide opportunities to the co nsumer for the better production. With more reasonable and affordable pricing.
•
The customer will get quicker services.
•
Long term funds for infrastructure development will be available to the country.
•
It will enhance the saving rate
•
It will secure for India larger inflow of foreign capital need to sustain our GDP growth.
30
ADVANTAGES OF LIBERALIZATION The opening up will enable the country to save more and invest more for the development in infrastructure. •
With new insurance intermediaries and more distribution channels the market is bound to develop by leaps and bounds.
•
In the next few years it is established that the Indian insurance sector will develop a better understanding of consumer requirement leading to more satisfaction of consumers.
•
Social and rural obligations will also be served as IRDA has come out with clear regulation in this regard, which makes the development in this area mandatory.
•
Global competition will help in building expertise with their global practice.
The IRDA governs the critical aspect of Insurance Sector including: •
The number and role of private sector operates including- Roman area intermediaries.
•
Regulate covering investment, solvency norms.
•
Product range.
•
Accounting practices.
•
Consumer protection Norms
•
Ensuring the Rural and Health Insurance are developed.
31
•
Fixing of license fee.
Perhaps all the most critical regulation is the 26% equity capital of foreign insurers. This regulation in issues regarding management control and one of the reasons for joint venture breaking up Cubb-Kotak, liberty-Dabur, Allstate-Dabur, Manu Life-UTI are some of the broken up alliances.
32
COMPANY PROFILE
33
ABOUT RELIANCE LIFE INSURANCE Reliance Life Insurance Company Limited is part of Reliance Capital Ltd.-of the Reliance Anil Dhirubhai Ambani Group . Reliance Capital is one of the India’s
leading private sector financial service Companies, and ranks among the top 3 private sector financial services and banking Company 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 activity in financial services.
Reliance Reliance Capital Capital Limited Limited (RCL) is non-Banking non-Banking Financial Company (NBFC) registered with Reserve bank of India under section 45-IA of the Reserve bank of India Act, 1934.
Reliance Capital sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services.
Reliance life insurance is another step forward for Reliance Capital Limited to offer need based Life Insurance Solution to individuals and Corporate.
34
Reliance Life Insurance is an associate company of Reliance Capital Ltd. Which along
with its associates has acquired 100% shares in AMP Samna Life Insurance Co Ltd.
Reliance Life Insurance has a pan presence and a range of products catering to
individual as well as corporate needs.
A total of 16 products products covering covering savings savings , protection protection & investmen investmentt
requirements
Reliance Life Insurance would strive hard to achieve the following goals :
Emerge as transnational Life Insures of global scale and standard
.
Achieve impeccable reputation and credentials through best business practices .
Vision : Empowering everyone live their dreams.
35
Mission : Create unmatched value for everyone through dependable , effective ,
transparent and profitable life insurance and pension plans .
Guiding Principles .
Reliance Life Insurance is another step step forward for Reliance Reliance Capital Limited to offer
need based life Insurance solution solution to individuals and corporate . There are various plans
which are offered for individuals & employees by Reliance Life insurance . They plans
are as follows:
CORPORATE PROFILE:
CEO - Mr. P nandagopal
CFO – Mr. Rajesh Bahl
CMO - Mr. Rohit Gaurav Mull
36
COO- Mr. K.V. Srinivasan
Vice President (Group Infrastructure)- Mr. K. Suresh Babu Appointed Actuary - Ms. Pournima Gupte Chief Investment Officer - Mr. R Rangarajan Head-HR - Ms. Maneesha Thakur
CEO Mr. Pnandagopal joined Reliance Life insurance Company Limited as CEO on October 4th, 505-the day the share holding of AMP Sanmar was transferred to Reliance Capital Group.
CFO
Mr. Rajesh Bahl is the Chief Financial Officer (CFO) of Reliance Life Insurance
Company Limited. In his role as CFO, Mr. Bahl is responsible for the overall finance and accounts operations.
CMO Mr. Rohit Gaurav Mull is the Chief Marketing Officer at Reliance Life
Insurance Company Limited. In this role Mr. Mull is responsible for the overall sales and
37
marketing operations and heads the 5 sales channels, product, training and marketing team at Reliance Life Insurance.
COO Mr. K.V. Srinivasan is the Chief Operating Officer of Reliance Life Insurance
Company Limited. In this assignment with Reliance Life Insurance, he heads the Operations, Finance, IT, Legal & Secretarial departments.
VICE PRESENDENT (GROUP INFRASTRUCTURE)
Mr. K. Suresh Babu is the Vice President – Group Infrastructure at Reliance
Life Insurance Company Limited and heads Branch Expansion and Group Infrastructure.
APPOINTED ACTUARY
Ms. Pournima Gupte is the Appointed Actuary at Reliance Life Insurance
Company Limited and heads the Actuarial Department.
CHIEF INVESTEMNT OFFICER Mr. R Rangarajan is the Chief Investment Officer at Reliance Life Insurance
Company Limited and heads the investment function. The objective of the Investment
38
team is to give best possible return on investments, keeping in view the risk appetite of the Shareholders and Policyholders.
HEAD-HR Ms. Maneesha Thakur heads the Human Resources Department at Reliance Life
Insurance Company Limited.
In this role, Ms. Thakur is responsible for developing a performance driven culture and ensuring manpower availability as per budgeted numbers with required competencies. She is also working on increasing media presence in people related areas by positioning key hires and social initiatives at local levels. She has also undertaken marketing and branding campaigns for key HR initiatives. One of the most challenging tasks for her is to build organizational-people cap abilities and developing leaders
PRODUCTS Insurance Plans
39
Life is unpredictable, but in face of adversity, our responsibilities towards our parents, children and loved ones need not be compromised. Insurance planning equips you to smooth out the uncertainties and adversities that life might send you way, so that the best that life has to offer, secure in the knowledge that you beloved ones are well provide for.
RELIANCE LIFE INSURANCE offers a complete range of insurance products INDIVIDUAL PLANS: SAVING (Endowment)
Reliance endowment Plan
Reliance special endowment plan
Reliance cash flow plan
Reliance child plan
Reliance whole life plan
Reliance connect 2 life plan
RETIREMENT
Reliance golden years plan
Reliance golden years plan value
Reliance golden years plan plus
UNIT LINKED
40
Reliance automatic investment plan (new)
Reliance money guarantee plan
Reliance market return plan
RISK/PROTECTION
Reliance term plan
Reliance simple term plan
Reliance special term plan
Reliance credit guardian plan
Reliance credit guardian plan
EMPLOYEE BENEFIT PLANS RISK (PROTECTION)
Reliance group term insurance policy
Reliance EDLT scheme
PENSION
Reliance group gratuity policy
Reliance group superannuating policy
What if customer already has Life Insurance? 41
How much insurance does customer need? How can customer buy insurance? Help me choose a product
What if customer already has Life Insurance?
As an individual, for the extent of financial protection you need is different from that as a married man which in turn is different from that as a parent. At each life stage, it is necessary to re-evaluate the amount of protection and provision you require and adjust for the same. Below are some of the events in you life for which you should reevaluate and plan your life insurance needs.
Life Stages
Marriage
Birth of a child
Schooling of child
College education of child
Marriage of child
ULIP OF RELIANCE LIFE INSURANCE:
42
1-
Always up, never down
Reliance Money guarantee plan
Unbeatable protection
For your investments
UNDER
THIS
PLAN
TH E
INVESTMENT
RISK
IN
THE
INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.
Yes, it’s a trio the pace setter plan, which promises Life Protection, an opportunity to gain control over your investments along with protection of downside risk. For the select few like you, the Reliance money Guarantee plan is a unit Linked product addressing comprehensive need to strike that prefect balance of Protection and Savings that you deserve as you grow successfully. The Reliance money Guarantee plan is a Regular premium Unit Linked Policy which guarantees the entire premium (including premiums for top-ups) paid by you. This is a plan, which helps you reap all the benefits of a rising market simultaneously protecting you from the downside risk of the market.
Key Features Reliance Money Guarantee plan:
Capital Guarantee the sum of all premiums paid is guaranteed on maturity or on death before the maturity.
43
Capital Guarantee is available on both the basic premiums as well as on top-on 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-up premium paid is guaranteed on death during the Policy Term provided there a re no partial withdrawals from that top-up.
Each top-up premium paid is guaranteed gu aranteed on maturity of the Policy provided the Policy Term is greater than ten years, there are no partial withdrawals from that top-up and the top-up was paid ten years before the maturity date.
44
Life Cover Benefit: The amount of Death Benefit depends on the age of the Life Assured at the time of death
i.
If the the age age of the Lif Lifee Assur Assured ed at at the the time time of death death is is more more than than 12 12 years years last last birthday while the Policy is in force, the Company will pay the sum of: 1.
Higher Higher of (Sum (Sum Assure Assured, d, Fund Fund Value Value as as on date date of intima intimatio tion n of death death under Basic Plan, Premiums paid under the Basic Plan excluding any extra or additional premiums paid.)
2.
Higher Higher of (Fun (Fund d Value Value as on date date of intima intimatio tion n of death death under under toptop- ups ups and top-up premium paid provided no partial withdrawal is made from that top-up)
ii.
However However if the the Life Life Assu Assured redss age at the the time time of death death is less less than than or equa equall to 12 12 years last birthday while the Policy is in force, the Death Benefit will be the sum of: 1.
Higher Higher of (Fun (Fund d Value Value as as on date date of intima intimatio tion n of deat death h under under Basi Basicc Plan Plan and premiums paid under the Basic Plan excluding any extra or additional add itional premiums paid) and
2.
Higher Higher of (Fun (Fund d Value Value as on date date of intima intimatio tion n of death death under under toptop- ups ups and top-up premium paid provided no partial withdrawal is made from that top-up)
iii. iii.
The The Poli Policy cy ter termi mina nate tess on paym payment ent of of the the Death Death Bene Benefi fit. t.
Maturity Benefit: The Maturity Benefit is the sum of
45
1. Higher of (Fund Value under Basic Plan and Premiums paid under Basic Plan excluding any extra or additional premiums paid)
2. Maturity Benefit under Top-Up If Policy Term is greater than ten years, the Maturity Benefit under top-up is the higher of (Fund Value under the top-up and top-up premium paid provided there is no partial withdrawal from that top-up) If Policy Term is ten years; the Maturity Benefit under the top-up is the Fund Value under the top-up. The Policy Terminates on payment of the Maturity Benefit.
Sum Assured The fixed Sum Assured under the Basic Plan would be calculated as the amount of annual premiums payable for half the Policy Term
Rider Benefit : You can add Accidental Death & Accidental Total and Permanent Disablement Benefit Rider & Term Life Insurance Benefit Rider.
What are the different fund options?
a. Funds available in respect of Basic Plan and top-up premium The plan offers three funds for Basic Plan and top-ups - Fund D, Fund E and Fund F. You have the option to decide your own fund mix with respect to premiums under the Basic Plan and top-ups.
46
b. Funds available in respect of Return Shield Option Return Shield Fund will be available if Return Shield Option is selected. The returns earned under the Basic Plan and top-ups will be transferred to Return Shield Fund if Return Shield option is selected. c. Funds available during settlement period If you have opted for the settlement option, then Fund C would apply by default during the settlement period.
2-Reliance Market Return Plan You have always aspired for the best in life. And we help you achieve just that.
With Reliance Market Return plan you can have the twin advantage of insurance protection as well as reaping the benefits of investment growth. It is a flexible plan which works all through your life and meets the changing requirements like additional protection, liquidity through cash, option to invest in different asset class, steady golden years and many more.
Key Features – Reliance Market Return Plan:
•
Twin benefit of market linked return and insurance protection
•
A Unit Linked Plan, different form traditional Life Insurance products, with maximum maturity age of 80 years
•
Option to create your own portfolio depending on your risk appetite 47
•
Choose from 4 different investment funds
•
Flexibility to switch between funds
•
Option to pay regular as well as single premium & Top-ups
•
Option to package with Accidental riders
•
Flexibility to increase the Sum Assured
•
Liquidity through partial withdrawals
Benefits Life Cover Benefit: You can choose the basic Sum Assured within the minimum and maximum levels mentioned below
Minimum Sum Assured:
•
Regular Premium: Annualized Premium for 5 years or for half the Policy term
•
Single Premium: 125% of the single premium
Maximum Sum Assured: No Limit (Rs 500,000 for age up to 12 years)
In case of unfortunate loss of life, your Beneficiary will get sum Assured or Unit Account Value whichever is higher.
Maturity Benefit: On survival, at maturity the value of your Unit Account will be paid
out.
Rider Benefit: You can add the Accidental Death & Accidental Total and Permanent
Disablement Benefit Rider (available only with regular premium option).
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This benefit doubles the life coverage in case of accidental death or accidental total and permanent disablement at a very nominal additional cost. The maximum cover is Rs. 50,00,000 per life.
In case of accidental total and permanent disablement, 1/10th of the Sum Assured will be paid at the end of each year for ten years. If the total and permanent disablement has commenced, the Accidental Death Benefit Cover ceases.
In case of maturity or on death of the Assured, after payment of installments of Accidental Total and Permanent Disablement Benefit, the remaining unpaid installments if any will be paid in one lump sum.
Accidental total and permanent disablement means disability caused by bodily injury, which causes permanent inability to perform any occupation or to engage in any activities for remuneration or profits. This disability should last for at least 6 months before being eligible for Accidental Total and Permanent Disablement Ben efits.
Total and permanent disablement includes loss of both arms or both legs or one arm and one leg or of both eyes. Loss of arms or legs means dismemberment by amputation of the entire hand or foot. Loss of eyes means entire and irrecoverable loss of sight.
Exclusions to Rider Benefit
Reliance Life Insurance will not be liable to pay any Accidental Death Benefit Claim or Total and Permanent Disablement Claim which results directly or indirectly from any one or more of the following:
49
•
An act or attempted act of self – injury
•
Participation in any criminal or illegal acts
•
Being under the influence of alcohol or drugs
•
Racing or practicing racing of any kind other than on foot
•
Flying or attempting to fly in, or using or attempting to use, an aerial device of any description, other than as a fare paying passenger on a recognized airline or charter service.
•
Participating in any riot, strike or civil commotion, active military service, naval air force, police or similar services or
•
War, invasion, act of foreign enemies, hostilities or war like operations (whether war be declared or not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped power or any act of terrorism.
3- Reliance Automatic Investment Plan
The Key benefits of Reliance Automatic Investment Plan are as follows:
•
A smart plan which adapts to your changing risk profile with increasing age
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•
Option to lower the average cost of units through systematic transfer of your funds
•
Flexibility to switch between funds and plans
•
Options for additional Insurance cover available through riders
Key Features Reliance Automatic Investment Plan
•
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 option
•
Freedom to decide your own fund mix based on your risk profile under the Tailormade 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
How does this Plan work? As a customer you will have the liberty to choose between the Ready-made and Tailormade Plan options. The premium contributions made by you, net of Premium Allocation Charges and Sum Assured Related Charges are invested in fund/funds of your choice a nd units are allocated depending on the price of units for the fund/funds.
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The Fund Value is the total value of units that you hold in the fund/ funds. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units, whereas the Fund Management Charge is priced in the Unit Value.
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 5 years
30 years
Term Min Sum
Regular / Limited Premium: Annualised Premium for 5 years or
Assured
Annualised Premium for half of the policy term, whichever higher Single Premium 125% of the single premium amount
Max Sum
No Limit
Assured
Benefit Illustration
To enable a better understanding on how the plan works, please refer to the below table for Regular Premium.
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
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Premium Paying Term
15
15
15
15
Sum Assured
1,87,500
1,87,500
1,87,500 1,87,500
at 6% investment return
4,95,104
4,94,413
4,93,017 4,90,506
at 10% investment return
6,94,534
6,93,530
6,91,444 6,87,755
Maturity Values:
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
Tax Benefit
As per current tax rules premiums paid are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Provided the premium in any years during the term of the Policy does not exceed 20% of the Sum Assured, maturity and withdrawals are eligible for tax benefit under Section 10(10D). Death benefits are tax free under Section 10(10) D of the Income Tax Act, 1961. Under Section 80C premiums up to Rs 100,000 are allowed as deduction from your taxable income.
Service tax and education cess will be charged extra as per applicable rates.
53
Please note that all benefits payable under the policy are subject to tax laws and other financial enactments, as they may exist from time to time. It is recommended that you consult your tax advisor.
•
The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market, and the insured is responsible for his/her decisions.
•
Reliance Life Insurance Company Limited is only the name of the Insurance Company and Reliance Automatic Investment Plan is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
•
Tax laws are subject to changes with retrospective effect and consulting a tax expert for an opinion is recommended
•
4-Reliance Golden Year Plan
Retirement means different things to different people, while some want 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.
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UNDER
THIS
PLAN
THE INVESTMENT
RISK
IN
THE INVESTMENT
PORTFOLIO IS BORNE BY THE POLICYHOLDER.
Key Features
•
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.
5-Reliance Golden years plan Plus There will come a day when you will hang up your boots and relax. But in order to achieve that ultimate stress free mind set for your autumn years, it is important that you plan now! Fulfill your dream of building up a minimum desired retirement fund which will ensure the independence you deserve.
A world tour? Golf? Starting a small business or simply spending more time with your family? Whatever your plans might be, the preparation starts today!
Reliance Golden Years Plan Plus is the right kind of solution for you!
55
It is a retirement plan that allows you to save systematically, build up the much needed corpus to make your golden years special, while ensuring a basic minimum amount collected, should the unthinkable happen before you achieve your dreams.
UNDER
THIS
PLAN
THE INVESTMENT
RISK
IN
THE INVESTMENT
PORTFOLIO IS BORNE BY THE POLICYHOLDER.
Key Features
•
A flexible Unit-linked Pension product, different from traditional products with Vesting Age between 45 and 64 years
•
Invest systematically and secure your golden years
•
Four different investment funds to choose from
•
Choose to switch between funds
•
Flexibility to advance your Vesting Age
•
Tax free commutation up to one third of fund value at Vesting Age
•
Optional Accident Benefit Rider
PENSION
6-Reliance Group Gratuity Policy In this policy, the investment risk in investment portfolio is borne by the policy holder
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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 of employment, 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 trustees to match assets and liabilities should adopt an a ppropriate medium- to long-term investment strategy.
Liability for your employees’ gratuity is often the trickiest thing to forecast 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 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 assist you 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
57
Capital Secure, Growth and Balanced Funds. It enables employers / trustees with more than 20 employees to outsource the management of their employees’ Gratuity funds and the related administration to Reliance Life Insurance Company Limited.
Policy Conditions
•
Minimum/Maximum annual past service gratuity contribution – Rs.50000/no limit
•
Minimum/Maximum Entry Age - 18 years last birthday/64 years 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
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. This insurance 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.
58
Capital Secure Fund: The investment objective of the Capital Secure fund is to maintain the value of all past service gratuity liability contributions (net of charges). The current asset allocation limits are: 100% Government securities and bank deposits with duration of less than 180 days. Time horizon – Short, Risk Level – Low, Level of expected returns – Low
The contributions in Capital Secure Fund must not exceed 20% of the total allocated contributions at any time.
Balanced Fund: The investment objective of the balanced fund is to provide policyholders with investment returns which exceed the rate of inflation in the long term while maintaining a low probability of negative investment returns. The current asset allocation limits are: 80% min Government securities and corporate bo nds & 20% max Equities. Time horizon – Medium, Risk Level – Low-medium, Level of expected returns - Medium
Growth Fund: The investment objective of the Growth fund is to provide policyholders with investment returns which exceed the rate of inflation in the long term while maintaining a moderate probability of negative investment returns. The current asset allocation limits are 60% min in Government securities, corporate bonds and bank deposits & 40% max in Equities. Time horizon – Long, Risk Level – Medium-High, Level of expected returns – Medium
7-Reliance group superannuating plan
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“In this Policy, the investment risk in investment portfolio is borne by the Policy holder”
Ensure a comfortable retirement for your corporate family.
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 e mployees will reach retirement age with an inadequate balance to purchase an income stream to provide them a reasonable income on retirement.
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
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.
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Employers can receive a full tax deduction for contributions up to 15% of an employee's salary into the Reliance Group Superannuation Policy arrangement
Traditional Plans of Reliance Life Insurance: Saving (Endowment)
1-Reliance Endowment Plan It takes a lot for a dream to become a reality. And money is surely one of them.
Reliance Endowment Plan gives you just the financial independence to realise 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.
61
Key Features
•
On maturity receive Sum Assured plus bonuses
•
Wealth 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
•
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.
2-Reliance Special Endowment Plan Reliance Special Endowment Plan is key to all your financial needs. You get a desired lump sum after a specified period, however your life insurance protection continues for an extended period. If anything were to happen to you, your beneficiary will get another sum assured along with the bonuses. The policy comes with an added feature of a limited premium term, which is always 5 years less than the policy term.
Key Features
•
Twin benefit of protection and savings
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•
Sum Assured is paid on survival, at the end of the premium paying term Life Cover for full Sum Assured continues beyond premium paying term Extended Life Cover for 5 years after premium paying term
•
Wealth creation through bonus additions
•
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 & Total and Permanent Disablement Rider
•
Choose to avail of a Policy Loan available after 3 full years’ of premium payment
•
Policy participates in profits even after premium paying term
Benefits Survival Benefit: On survival at the end of the premium paying term you get the Sum Assured.
Maturity Benefit: On survival to maturity you get accumulated bonuses.
Life Cover Benefit: Your Beneficiary will get Sum Assured plus accumulated bonuses in case of your unfortunate death at any time during the Policy term. This life cover benefit continues even after the payout of Sum Assured after premium paying term.
63
Rider Benefit: You also have the option to add 2 additional benefits to customize the Policy as per your needs
a. Accidental Death Benefit & Total and Permanent Disablement Rider b. Critical Illness Rider
Accidental Death Benefit & Total and Permanent Disablement Rider Accidents are unfortunate and sometimes fatal. You can customize your basic Policy with an Accidental Death Benefit & Total and Permanent Disablement Rider.
The Accidental Death benefit is payable if death occurs directly as a result of an accident and is intimated within 90 days of the occurrence.
The Benefit payable is equal to the Rider Sum Assured. The minimum Sum Assured is Rs 25,000 and the maximum under all Policies taken together is Rs 50,00,000.
The Total and Permanent Disablement Benefit is payable if the Life Assured becomes totally and permanently disabled directly as a result of an accident.
The Disablement Benefit is equal to the basic Sum Assured paid in ten equal annual installments
Total and Permanent Disablement is defined as the total and irrecoverable loss of sight of both eyes, or loss by severance of two limbs at or above wrist or ankle, or total and irrecoverable loss of the sight of one eye and loss by severance of one limb at or above wrist or ankle for a period of at least six months.
64
Inbuilt Waiver of Premium If the Life Assured becomes totally and permanently disabled, then Reliance Life Insurance will waive all future premiums under the basic policy and riders up to a limit of Rs 40,000 p. a.
3-Reliance cash flow Plan 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 specified intervals.
Key Features
•
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
65
•
Option to add two riders – Critical Illness Rider and Accidental Death Benefit & Total and Permanent Disablement Rider
4-Reliance Child Insurance Plan As a parent, it is only natural to dream of a smooth and blissful life for your child. Which is exactly why you need to secure your child’s tomorrow, today.
Reliance Child Plan helps you save systematically so that you can give your child the much-needed financial security in the future. Simply put, Reliance Child Plan gives you the freedom to enjoy every moment with your child today, without worrying about his/her tomorrow.
Key Features
•
Risk protection for you during the term of the Policy
•
Accumulated bonus at the end of the Policy Term
•
25% of Sum Assured payable every year as lump sum benefit during 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 the Policyholder
•
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
66
5-Reliance Whole Life Plan You always loved your family. As a loving p erson you also wanted to be rest assured in the knowledge that they will be happy, even if something were to happen to you. With Reliance Whole Life Plan you can be sure that your family will receive that timely financial support they need.
Go ahead, live your today to the fullest without a worry about tomorrow.
Key Features
•
Insurance protection till age 85
•
Choose to extend your insurance coverage till age 99
•
Convenient Premium Payment Term Wealth creation through bonus add itions
•
More value for your money by way of High Sum Assured Rebate
•
Get Sum Assured plus bonuses in case of your unfortunate death
•
Option to add two riders – Critical Illness and Accidental Death Benefit & Total & Permanent Disablement Rider
•
Policy Loan available after three full years’ premium payment
6- Reliance Connect 2 Life Plan Reliance Connect 2 Life Plan helps you build security & savings for a better tomorrow. As your income is likely to grow, you should a lso ensure that you have sufficient protection for your near and dear on es. Reliance Connect 2 Life Plan ensures
67
that you have the option to upgrade your life cover to keep pace with your changing lifestyle.
Key Features & Benefits
Maturity Benefit: On survival of the life assured until maturity, the Plan pays the sum assured plus simple vested bonuses to the policyholder.
Death Benefit: In case of unfortunate death of the life assured before the maturity date, the Plan pays the sum assured plus simple vested bonuses to the nominee.
Choice of two plans: At the time of initial purchase of Reliance Connect 2 Life Policy, you have two kinds of plans to choose from namely, Gold Plan and Silver Plan.
•
The Reliance Connect 2 Life Gold Plan offers a life cover of Rs 2,00,000 initially. You may enhance your life cover to a maximum of Rs 10,00,000 in two stages by exercising your option.
•
The Reliance Connect 2 Life Silver Plan offers a relatively lower life cover of Rs 1,00,000 initially. You may enhance your life cover to a maximum of Rs 5,00,000 in two stages by exercising your option.
Options to enhance life cover:
Under each of the above two plans, you have an option to
enhance your life cover amount:
68
•
At the end of one year from the date of initial purchase of Reliance Connect 2 Life Gold / Silver Plan, you are entitled to enhanc e your life cover by exercising your option to purchase an additional Reliance Connect 2 Life Policy.
•
Provided you have exercised your option to enhance life cover at the end of the first year, you are entitled to enhance your life cov er again at the end of the second year by purchasing an additional Reliance Connect 2 Life Policy.
For further details on options, please refer to the section on “Other Conditions”
Other Benefits:
•
Reliance Connect 2 Life Plan comes to you with a host of other benefits:
No medical examination and minimal paperwork
•
A profit plan
•
High sum assured rebate for large life cover per policy
•
Policy loan after 3 years
•
Tax benefit under Section 80C & 10(10)D of IT Act
7-RELIANCE TERM PLAN Life, as we know, is full of uncertainties. And to keep ahead of them, you need to plan ahead.
Reliance Term Plan is a pure life insurance plan that offers you comprehensive and affordable coverage for a limited period of time to suit your needs.
Key Features
69
•
Get higher insurance protection at economical rates
•
Optional accidental & disability rider to enhance protection
•
Economical way to protect your family against financial liabilities like loss of income and outstanding loans etc.
•
Discount on premium rates for women
•
Suitable for business owners who want to cover the life of their key employees
8-RELIANCE SIMPLE TERM PLAN To protect your family from tomorrow’s uncertainties, you need to plan from today. And Reliance Simple Term Plan helps you do just that. It is a cost-effective, pure life insurance plan that offers you comprehensive and affordable coverage for a limited period of time to suit your needs.
Policy Term
Policy Term:
3 years
Who can buy this product?
Minimum age at entry:
18 years
Maximum age at entry:
44 years
Maximum age at maturity: 47 years Sum Assured
70
Sum Assured
Rs 10,000
What happens if I discontinue paying premium? If the Premiums are not paid within the Grace Period, the Policy will lapse. Grace period is one month but not less than 30 days.
General Exclusion No claim will be paid on death, if the Life Assured, whether sane or insane, commits suicide within 12 months from the date of issue of this Policy or the date of any reinstatement of this Policy.
15 Day Free Look Period The Policyholder may cancel this Policy by returning it to the Company within 15 days of receiving it together with a letter requesting it be cancelled. The Company will refund the premium paid by the Policyholder less a deduction:
•
of the proportionate premium for the time cover has been provided till cancellation
•
of expenses incurred by the Company for medical examination of the Life Assured, Stamp Charges and expenses incurred in that connection.
9- RELIANCE SPECIAL TERM PLAN To stay ahead of the uncertainties of life, we need to plan well in advance.
Reliance Special Term Plan is a pure life insurance plan that offers you comprehensive and affordable coverage for a limited period of time to suit your needs. 71
What’s more, on survival at maturity all premiums paid for your basic policy will be returned to you.
Key Features
•
Get higher insurance protection at economical rates
•
Basic premiums paid will be refunded at maturity
•
Choose to pay regular or single premium
•
Discount on premium rates for women Choose to add the benefits of two riders to your Policy – Critical Illness Rider and Accidental Death Benefit & Total and Permanent Disablement Rider
10-RELIANCE CREDIT GURDIAN PLAN In today’s world of easily available loans, we often tend to neglect the price our loved ones have to pay in case of our untimely demise.
Reliance Credit Guardian Plan ensures that your housing loans, personal loans or even outstanding credit card bills are paid in the event of untimely demise. Thus keeping you and your family protected from the burden and the worry of debt in such a situation.
Key Features
•
Different types of loans are covered under this Policy - housing Loans, Personal Loan, outstanding on credit cards etc
•
Limited premium paying term
72
•
Single & regular premium payment option Discount on p remium rates for women
•
Decreasing term insurance
11-RELIANCE SPECIAL CREDIT GURDIAN PLAN Reliance Special Credit Guardian Plan helps you and your family avoid such situations by securing your housing loans, personal loans and even credit card payments. What makes the Plan special is the fact that on survival at maturity, all premiums paid for your basic policy will be returned to you.
Key Features
•
Different types of loans are covered under this plan - housing loan, personal loan, outstanding on credit cards etc.
•
Limited premium paying term Single & regular premium payment options
•
Discount on premium rates for women Decreasing Term Insurance
•
Option to add two riders – Critical Illness and Accidental Death Benefit & Total & Permanent Disablement Rider
EMPLOYEE BENEFIT PLANS
Risk Protection
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1-Reliance Group Term Insurance Plan: 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.
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.
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.
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 normal retirement 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.
74
No further benefit is payable subsequently.
No benefits are payable on survival to the end of the year.
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
At the end of every 3 policy periods, under the basis specified below, we will investigate the claims experience under this policy. That investigation may lead us to decide that an experience refund is due. If we declare that an experience refund is due, we will adjust it against the premium due for the next policy period.
If it later turns out that an incorrect experience refund has been paid, the policy owner must pay any amount owed to us. Also, we may reduce the amount we pay under any claim to reflect any amount the policy owner owes.
Experience refund = x% of (y% Premiums-Claims including an allowance for incurred but not reported claims)- Losses carried forward from the previous period, if any. Refer table below:
No. of Lives
No. of Life years
X
Y
500
1500
50%
60%
1000
3000
50%
60%
500
7500
60%
61%
75
5000
15000
75%
63%
7500
2500
75%
65%
10000
30000
75%
67%
15000
45000
75%
70%
5000
60000
75%
70%
50000
150000
85%
70%
100000
300000
85%
70%
2-Reliance EDLI (Employee’s Deposit Link Insurance) Scheme All establishments with at least 10 full-time permanent employees and to whom the Employee's Provident Fund and Miscellaneous Provisions Act, 1952 applies, have a statutory liability to subscribe to Employee's Deposit Linked Insurance Scheme (EDLI), to provide for life insurance for all their employees.
The Central Provident Fund Commissioner has approved Reliance Life Insurance Employee Benefit Life Assurance policies to be offered as an alternative to the Employee's Deposit Linked Insurance Scheme, 1976 (EDLI).
Several benefits of replacing EDLI by Reliance EDLI Scheme policy are:
Possible reduction in contributions payable by the employer. The premium payable by the employer under the Reliance EDLI Scheme could be lower than the total contribution paid by the employer under the EDLI Scheme depending on the average age and risk profile of the industry.
76
Simple structure of the life insurance cover Life cover provided by EDLI is proportional to the balances in the PF account 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 Employee’s Deposit Linked Insurance Scheme, 1976 (EDLI).
Stress - free administration Experienced and professional administration resulting in hassle free services for member employee data management and claims payments apart from others.
RIDERS Reliance Life Insurance gives you the freedom to form you very own comprehensive insurance policy by adding the rider benefits to the basic life insurance policy. Add from the following list of benefits to increase the scope of you policy, at nominal cost.
Critical Illness Rider
Accident And Disability Benefit Rider
Term Life Insurance Benefit Rider
Waiver of Premium Rider (WOP)
Critical Illness Rider 77
Sudden onset of a major Illness causes worries and heavy expenses. Our optional Critical Conditions Cover helps provide financial relief in such c ases. It pays you the Sum Assured upfront in respect of ten major illnesses.
Cancer
Coronary artery bypass surgery
Heart Attack
Stroke
Kidney failure
Aorta Surgery
Coma
Heart Valve replacement
Major organ Transplant
Paralysis
This Benefit can be availed only once against any one of the illnesses and the Company will not pay the claim if it arises from deliberate self-injury or attempted suicide by the Life Assured, whether sane or insane. This benefit will only be given, if the diseases are confirmed by a Consultant Physician.
Critical Illness Age at entry
18 yrs
55 yrs
Age at expiry
25 yrs
64 yrs Rs 10,00,000 (subject to a maximum of basic
Sum Assured
Rs 1,00,000 policy sum assured)
Minimum policy
5 term
78
Cancer: 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.
Coronary Artery (Bypass) Surgery: Angioplasty and/or any other intra-arterial
procedures; key-hole surgery.
Paralysis: Paralysis due to Guillain-Barré-Syndrome.
Waiting and Survival Period
The Company will not pay the Critical Illness Benefit if:
•
The critical illness begins prior to or within six months of the commencement date or date of reinstatement of the Benefit - Waiting Period
•
Death from critical illness takes place within 30 days of the onset of the same – Survival Period
Accident and Disability Benefit Rider
Accidents are unfortunate and sometimes fatal. You can customize your basic Policy with an Accidental Death Benefit & Total and Permanent Disablement Benefit Rider.
79
The Accidental Death benefit is payable if death occurs directly as a result of an accident and is intimated within 90 days of the occurrence.
The Benefit payable is equal to the Rider Sum Assured. The minimum Sum Assured is Rs 25,000 and the maximum under all Policies taken together is Rs 50, 00,000.
The Total and Permanent Disablement Benefit is payable if the Life Assured becomes totally and permanently disabled directly as a result of an accident.
The Disablement Benefit is equal to the basic Sum Assured paid in ten equal annual installments
Total and Permanent Disablement is defined as the total and irrecoverable loss of sight of both eyes, or loss by severance of two limbs at or above wrist or ankle, or total and irrecoverable loss of the sight of one eye and loss by severance of one limb at or above wrist or ankle for a period of at least six months.
Inbuilt Waiver of Premium If the Life Assured becomes totally and permanently disabled, then Reliance Life Insurance will waive all future premiums under the basic policy and riders up to a limit of Rs 40,000 p. a.
Accidental Death & Disability Benefit Age at entry
18 yrs
59 yrs
Age at expiry
25 yrs
64 yrs
Sum Assured
Rs 25,000
Rs 50,00,000 (subject to a maximum of basic policy sum assured)
80
The Company will not pay any Accidental Death Claim or Total and Permanent Disablement Claims, which results directly or indirectly from any one or more of the following:
•
An act or attempted act of self-injury,
•
Participation in any criminal or illegal act,
•
Being under the influence of alcohol or drugs except under direction of a registered medical practitioner,
•
Racing or practicing racing of any kind other than on foot,
•
Flying or attempting to fly in, or using or attempting to use, an aerial device of any description, other than as a fare paying passenger on a recognized airline or charter service,
•
Participating in any riot, strike or civil commotion, active military, naval, air force, police or similar service, or
•
War, invasion, act of foreign enemies, hostilities or war like operations (whether war be declared or not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped power or any act of terrorism or violence.
Term Life Insurance Benefit Rider:
Add the advantage of the Term Life Insurance Benefit rider to your ba sic Policy and increase risk coverage.
In the event of unfortunate loss of life the Term Life Insurance Benefit is payable and the amount payable is equal to the rider Sum Assured.
81
There is no Maturity Benefit.
Term Insurance Minimum / Maximum Age at
18 / 59 entry
64 yrs (policy anniversary immediately following Maximum Age at expiry
age) Sum Assured
Rs 1,00,000
Equal to basic policy sum assured
Policy Term
Equal to basic policy term
Waiver of Premium Rider (WOP) In the event of unfortunate loss of life, your child is completely protected. The Company waives the entire future premium apart from paying the Sum Assured to the Beneficiary. In additions all the fixed benefits are paid as and when due. Bonuses will remain attached to your Policy and are payable at maturity.
82
ANALYSIS
ACCORDING TO GENDER Male
70%
83
Female
30%
70% 60% 50% 40%
MALE
30%
FEMALE
20% 10% 0% 1
2
The above graph represents that •
30% female prefer the life insurance
•
70% male prefer the life insurance
That shows that males are more aware about the Insurance.
ACCORDING TO AGE 20-30
25%
84
30-40
45%
40-50
25%
50-60
5%
45% 40% 35% 30%
20-30
25%
30-40
20%
40-50
15%
50-60
10% 5% 0% 1st Qtr
The above graph represents that •
The people of age above 30-40 are more interested in insurance in comparison to the young generation.
ACCORDING TO OCCUPATION Government
40%
Business
50%
85
Student
5%
Housewives
5%
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
government Business student Housewives5%
The above graph represents that Business & Govt. Service prefer more insurance in comparison to Housewives & student.
ACCORDING TO THINKING Contact
20%
Agreement
15%
86
Security
60%
None of these
5%
0.6 0.5 0.4
Contact Agreement Security
0.3
None of these
0.2 0.1 0
People think that insurance is a security for future.
ACCORDING TO CHOICE OF PLAN ULIP
60%
Traditional
40%
87
60% 50% 40% ULIPS 30%
Traditional
20% 10% 0%
The above graph represents that •
60% people prefer ULIP now a days
•
Only 40% people prefer traditional plans
LEVEL OF SATISFACTION Good Average Below average
65% 30% 5%
88
70% 60% 50% Good
40%
Average
30%
Below average
20% 10% 0%
The above graph shows that •
65% people are satisfied with their policy.
•
30% people are not fully satisfied with their policy.
•
5% people are diss satisfied with their policy.
ACCORDING TO PERSON INTEREST
89
80% 70% 60% 50% YES NO
40% 30% 20% 10% 0% 1
The above graph shows that •
75% people interested in life insurance
•
25% people not interested in life insurance
ACCORDING TO HOW MUCH PEOPLE CAN INVEST PER ANNUM
90
50% 45% 40% 35% 30%
5000-10000
25%
10000-25000
20%
25000-50000
15% 10% 5% 0% 1
2
The above graph represents that •
Generally people like minimum installment mostly in between 5000 to 10000
SETISFACTION LEVEL WITH INSURANCE POLICIES
91
80% 70% 60% 50% 40%
YES
30%
NO
20% 10% 0% 1
2
The above graph represents that •
People are quite satisfied with the services of Insurance Companies.
•
Insurance Companies are performing better.
BY WHOM YOU HAVE HEARD ABOUT THE R.L.I.C.
92
80% 70% 60% 50%
Friends Advertisement
40%
Holdings Advisers
30% 20% 10% 0% 1
2
The above graph represents that •
Advisers of the company are very active.
•
Company is investing very less on advertising.
SETISFACTION LEVEL ABOUT R. L. I. C..
93
70% 60% 50% 40%
YES
30%
NO
20% 10% 0% 1
2
The above graph represents that •
70 % People are satisfied with the services of R. I. C. L.
•
Insurance Companies are performing better.
SETISFACTION LEVEL ABOUT R. L. I. C. ALLOCATION SYSTEM
94
60% 50% 40%
GOOO
30%
AVERAGE
20%
BELOW AVERAG
10% 0% 1
2
The above graph represents that •
60 % People feels that the allocation system of R. I. C. L. is good.
•
That shows the trust of people towards the R. I. C. L.
SETISFACTION LEVEL WITH ADVISERS SERVICES
95
80% 70% 60%
GOOO
50% 40%
AVERAGE
30%
BELOW AVERAG
20% 10% 0% 1
2
The above graph represents that •
80 % People are satisfied with the services of advisers of R. I. C. L.
•
That shows the better network of R. I. C. L.
96
SETISFACTION LEVEL WITH COMPANIES REPUTATION 90% 80% 70% GOOO
60% 50%
AVERAGE
40% 30%
BELOW AVERAG
20% 10% 0% 1
2
The above graph represents that •
90 % People are impressed with the reputation of R.I.C.L.
•
Company has a good reputation in the market.
97
SETISFACTION LEVEL WITH BRANCH SUPPORT 80% 70% 60%
GOOO
50% 40%
AVERAGE
30%
BELOW AVERAG
20% 10% 0% 1
2
The above graph represents that •
80 % People are satisfied with the services of branch of R. I. C. L. in Sitapur.
•
That shows competency of the staff of the branch of the R. I. C. L. in Sitapur.
98
WHY CHOOSE THE R.L.I.C.
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
Service activity High Return Brand Image Trust Based
1
2
The above graph represents that
•
50 % of people choose the R.L.I.C. because of its high return.
•
That shows the good brand image of the company in the peoples mind
99
FURTHE INVESTMENT IN R. L. I. C..
70% 60% 50% 40%
YES NO
30% 20% 10% 0% 1
2
The above graph represents that •
70 % People wish to invest their money in R. I. C. L.
•
That shows the increasing popularity of R. I. C. L. in the public.
100
SETISFACTION LEVEL OF CUSTOMER SERVICES IN R. L. I. C..
70% 60% 50% 40%
YES
30%
NO
20% 10% 0% 1
2
The above graph represents that •
70 % People are quite satisfied with the customer in R.I.C.L.
•
That shows the better customer service quality of R. I. C. L. in Sitapur.
101
SETISFACTION LEVEL WITH THE FUND PERFORMANCE
80% 70% 60% 50% 40%
YES
30%
NO
20% 10% 0% 1
2
The above graph represents that •
75 % People are satisfied with the fund performance in R.I.C.L.
•
That shows the better fund performance in R. I. C. L..
102
ANY FUTURE IMPROVEMENT R. L. I. C..
90% 80% 70% 60% 50%
YES
40%
NO
30% 20% 10% 0% 1
2
The above graph represents that •
90 % People feel the need of some improvement in R.I.C.L.
•
That shows the awareness of public about the R.I.C.L..
103
FINDINGS
104
FINDINGS
It was found that people of age group between 25-35 yrs are more concerned about life insurance.
It was found that there is very less awareness and eagerness about life insurance.
In Sitapur customers prefer LIC most than any other private life insurance company.
Customers mainly prefer those plans which have lower premium, g ood returns & minimum risk.
Young generation mostly prefers short term investment and they will move towards high risk and high return.
Generally people like to have their life insurance of more than Rs. 1, 00,000.
105
CONCLUSION
The insurance sector plays a very vital role in the process of economic development of any country. It acts as a mobilize of savings, as financial intermediary, as promoter of investment activates, as stabilizer of financial markets and as a risks manager. Insurance service leads to efficient and productive allocation of capital resources, facilitate growth of trade and commerce, substitute for governments social security programmes, and assist individuals and firms in efficient management of risks, The major companies world over have realized the need for adequate insurance in all perceptible areas affecting their firms, We may safely observe that the insurance market may tremendously improve as India represents huge untapped market. Globalization will certainly increase insurance penetration and all professionals should equip themselves to exploit the opportunities offered by this sector.
106
RECOMMENDATIONS
Majority of the people take life insurance to cover the risks and uncertainties associate with future. The need is to change this perception of the customer and to make him realize that life insurance is also a type of investment.
The customers are well aware that insurance is a people driven industry. The perception is that it is basically the agent who explains, recommend, influence and persuade at times pressurize the people to buy the policy. Thus focus on agents needs to be increased.
The basic factor guiding a customer while purchasing a policy is the price he needs to pay as premium. It is thus recommended that the pricing policy should be given utmost importance. It should be such that it suits the common man and depositing premiums does not become a burden for him.
Advertising should be designed in such a way that the communication objective and sales objective are met, along with, stating the mission of the companies. 107
Easy premium deposits, easy and fast claim setting with less paper work, are some desired aspect.
The rural people are not aware of benefit of life insurance. Massive advertisement campaign is required to trap this ignored lot by the life insurance companies.
108
S.W.O.T. ANALYSIS
109
S.W.O.T. ANALYSIS STRENGTH
Multi-channel distribution and one of the largest distribution networks in India.
Customer centric product and services.
Superior investment and risk management framework.
Company has maximum number of MDRT as well as good number of advisers.
Training process of the company is very strong.
Different plans for different peoples.
According to the change in surrounding environment like change in customer requirement.
WEAKNESS
Companies are not focusing on outskirt and remote areas and villages.
There is no plan for the low income group.
Fees of the adviser is high than the other company.
110
OPPORTUNITY
Insurance market is very big where company can expand its horizon in insurance industry.
Through good investment and insurance it is easy to top Indian customers.
The huge insurance market (77%) is left so company has opportunity to expand out products.
THREATS
Its still difficult task to win the confidence of public towards private company.
The companies are facing major threats LIC which is an only government company.
Plans for all income groups are not available which can create adverse effect later on the market share of the company.
111
LIMITATIONS
112
LIMITATION OF THE STUDY
•
The sample size taken is very small to project the characteristics of the population accurately.
•
Potential estimation is based on the responses given by the customers in the questionnaire, so the estimation is more subjective.
•
There is a chance of biases in the responses given by customers as they may hesitate in disclosing the exact information.
•
High rate of illiteracy and lack of knowledge made the customer unable to provide proper information in the rural market.
113
ANNEXURE
114
QUESTIONNAIRE
Name……………………………………………………………. Address…………………………………………………………. Phone No………………………………………………………. Age: 20-30 (
)
30-40
Gender:-
(
)
40-50
(
)
Male ( )
50-60
Female (
(
)
)
1-Working fieldPrivate ( )
Govt. ( )
Business ( )
Student ( )
Housewives ( )
2- What do you know about insurance? Contact (
) Agreement (
3- Have You insured?
)
Security ( Yes (
)
None of these (
)
No
(
)
)
4-Why You have insurance policy? For Investment (
)
Future Safety
(
)
Only Insurance (
)
5- What policy have you got? ULIP (
)
Traditional (
)
6- By whom you heard about Reliance Life Insurance
115
Friends ( )
Advertisement (
)
Hoardings (
)
Magazine
(
)
7-How much can you invest per annum? 5000-10,000
(
)
10,000-25,000
(
)
25,000-50,000
(
)
<50,000
(
)
8-what are the t erms of your investment? 3 Years (
) 5 Years
(
) 10 years (
)
More than 10 Years (
)
9- How much old Yours policy was? 1 Year
(
)
2 Year
(
)
3 Year
(
) More than 3 Year
(
)
10- If you not Insured than Why? Lack of Knowledge (
) Lack of money (
) Not believe in insurance co. (
)
11-Are You Want to Insured? Yes
(
)
No
(
)
116
CUSTOMER SATISFACTION 1-Are You Satisfied with Your policy? Yes
(
)
No
(
)
2- Your Level of satisfaction? Good
(
)
Average
(
)
below Average
(
)
below Average
(
)
below Average
(
)
below Average
(
)
below Average
(
)
3- Your satisfaction level with allocation system? Good
(
)
Average
(
)
4- Your satisfaction level with Advisor service? Good
(
)
Average
(
)
5- Your satisfaction level with company reputation? Good
(
)
Average
(
)
6- Your satisfaction level with branch support? Good
(
)
Average
(
)
7-If You are not satisfied then Why ? Lack of trust
(
)
Insufficent knowledge
(
)
With return
(
)
With Manager and customer relationship
(
)
117
CUSTOMER PREFERENCE 1-Why You choose Relience Insurance Company? Service facility ( Brand image (
) )
High return ( Trust based (
) )
2-Are you want to invest further in future in RLIC ltd? Yes
(
)
No
(
)
(
)
3-Are You satisfy with Customer service in RLIC? Yes
(
)
No
4-Your Satisfaction level with fund performance? Good
(
)
Average
(
)
below Average
(
)
5-Do You want any future improvement in RLIC ? Yes
(
)
No
(
)
SUGGESTION…………………………………………………………………………..... ………………………………………………………………………………………………
DATE
SIGNATURE
118
BIBLIOGRAPHY
119
