CHAPTER I

INDIAN INSURANCE
INDUSTRY
“AN OVERVIEW”
 THE INSURANCE INDUSTRY IN INDIA

AN OVERVIEW

With the largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It’s a business growing at the rate of 15-
20 per cent annually and presently is of the order of Rs 1560.41 billion (for the
financial year 2006 – 2007). Together with banking services, it adds about 7% to
the country’s Gross Domestic Product (GDP). The gross premium collection is
nearly 2% of GDP and funds available with LIC for investments are 8% of the
GDP.

Even so nearly 65% of the Indian population is without life insurance cover while
health insurance and non-life insurance continues to be below international
standards. A large part of our population is also subject to weak social security and
pension systems with hardly any old age income security

A well-developed and evolved insurance sector is needed for economic

development as it provides long term funds for infrastructure development and
strengthens the risk taking ability of individuals. It is estimated that over the next
ten years India would require investments of the order of one trillion US dollars.

HISTORICAL PERSPECTIVE

The history of life insurance in India dates back to 1818 when it was conceived
as a means to provide for English Widows. Interestingly in those days a higher
premium was charged for Indian lives than the non - Indian lives, as Indian lives
were considered more risky to cover. The Bombay Mutual Life Insurance
Society started its business in 1870. It was the first company to charge the same
premium for both Indian and non-Indian lives.

The Oriental Assurance Company was established in 1880. The General

insurance business in India, on the other hand, can trace its roots to Triton
Insurance Company Limited, the first general insurance company established in
the year 1850 in Calcutta by the British. Till the end of the nineteenth century
insurance business was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life
Insurance Companies Act of 1912 and the Provident Fund Act of 1912. Several
frauds during the 1920's and 1930's sullied insurance business in India. By 1938
there were 176 insurance companies.

The first comprehensive legislation was introduced with the Insurance Act of
1938 that provided strict State Control over the insurance business. The
insurance business grew at a faster pace after independence. Indian companies
strengthened their hold on this business but despite the growth that was
witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life
insurers and provident societies under one nationalized monopoly corporation
and Life Insurance Corporation (LIC) was born. Nationalization was justified on
the grounds that it would create the much needed funds for rapid
industrialization. This was in conformity with the Government's chosen path of
State led planning and development.
The non-life insurance business continued to thrive with the private sector till
1972. Their operations were restricted to organized trade and industry in large
cities. The general insurance industry was nationalized in 1972. With this, nearly
107 insurers were amalgamated and grouped into four companies- National
Insurance Company, New India Assurance Company, Oriental Insurance
Company and United India Insurance Company. These were subsidiaries of the
General Insurance Company (GIC).

KEY FEATURES OF LIFE INSURANCE-

1) Nomination: -
When one makes a nomination, as the policyholder you continue to be the
owner of the policy and the nominee does not have any right under the
policy so long as you are alive. The nominee has only the right to receive the
policy monies in case of your death within the term of the policy.
2) Assignment: -
If your intention is that your policy monies should go only to a particular
person, you need to assign the policy in favor of that person.
3) Death Benefit: -
The primary feature of a life insurance policy is the death benefit it provides.
Permanent policies provide a death benefit that is guaranteed for the life of
the insured, provided the premiums have been paid and the policy has not
been surrendered.
4) Cash Value: -
The cash value of a permanent life insurance policy is accumulated
throughout the life of the policy. It equals the amount a policy owner would
receive, after any applicable surrender charges, if the policy were
surrendered before the insured's death.
5) Dividends: -
Many life insurance companies issue life insurance policies that entitle the
policy owner to share in the company's divisible surplus.
6) Paid-Up Additions: -
Dividends paid to a policy owner of a participating policy can be used in
numerous ways, one of which is toward the purchase of additional coverage,
called paid-up additions.
7) Policy Loans: -
Some life insurance policies allow a policy owner to apply for a loan against
the value of their policy. Either a fixed or variable rate of interest is charged.
This feature allows the policy owner an easily accessible loan in times of
need or opportunity.
8) Conversion from Term to Permanent: -
When in need of temporary protection, individuals often purchase term life
insurance. If one owns a term policy, sometimes a provision is available that
will allow her to convert her policy to a permanent one without providing
additional proof of insurability.
9) Disability Waiver of Premium
Waiver of Premium is an option or benefit that can be attached to a life
insurance policy at an additional cost. It guarantees that coverage will stay in force
and continue to grow.

BENEFITS OF LIFE INSURANCE

1) Risk cover: -
Life Insurance contracts allow an individual to have a risk cover against any
unfortunate event of the future.
2) Tax Deduction: -
Under section 80C of the Income Tax Act of 1961 one can get tax deduction
on premiums up to one lakh rupees. Life Insurance policies thus decrease the
total taxable income of an individual.
3) Loans: -
An individual can easily access loans from different financial institutions by
pledging his insurance policies.
4) Retirement Planning: -
What had provided protection against the financial consequences of
premature death may now be used to help them enjoy their retirement years.
Moreover the cash value can be used as an additional income in the old age.
5) Educational Needs: -
Similar to retirement planning the cash values that flow from ones life
insurance schemes can be utilized for educational needs of the insurer or his
children.

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE

ECONOMY
The Life Insurance Industry has an enviable track record among public
sector units. It has a Consistent profit and dividend paying record
accompanied by a steady growth in its financial resources. Through
investments in the Government sector and socially- oriented sectors the
Industry has contributed immensely to the nation's development. The
industry is recognized as one of the largest financial Institutions in the
country. The ventures initiated by the industry in the areas of Mutual Fund,
Housing Finance has done exceedingly well in recent years. To protect the
country's foreign exchange reserves, the reinsurance arrangement are so
organized that maximum retention is made possible within the country while
at the same time protecting interests of the policy holders.

KEY MILESTONES

1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended by the Insurance Act with the
objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers along with provident societies were taken
over by the central government and nationalized. LIC was formed by an Act of
Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crore from the
Government of India.

INDUSTRY REFORMS

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory
body in April 2000 has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies. Since being set up as an
independent statutory body the IRDA has put in a framework of globally
compatible regulations.
The other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of
the IRDA online service for issue and renewal of licenses to agents. The approval
of institutions for imparting training to agents has also ensured that the insurance
companies would have a trained workforce of insurance agents in place to sell their
products.

PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN

INDIA

The life insurance industry in India grew by an impressive 47.38%, with premium
income at Rs. 1560.41 billion during the fiscal year 2006-2007. Though the total
volume of LIC's business increased in the last fiscal year (2006-2007) compared to
the previous one, its market share came down from 85.75% to 81.91%.

The 17 private insurers increased their market share from about 15% to about 19%
in a year's time. The figures for the first two months of the fiscal year 2007-08 also
speak of the growing share of the private insurers. The share of LIC for this period
has further come down to 75 percent, while the private players have grabbed over
24 percent.

With the opening up of the insurance industry in India many foreign players have
entered the market. The restriction on these companies is that they are not allowed
to have more than a 26% stake in a company’s ownership.
Since the opening up of the insurance sector in 1999, foreign investments of Rs. 8.7
billion have poured into the Indian market and 19 private life insurance companies
have been granted licenses.

Innovative products, smart marketing, and aggressive distribution have enabled

fledgling private insurance companies to sign up Indian customers faster than
anyone expected. Indians, who had always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new
innovative products on offer. Some of these products include investment plans with
insurance and good returns (unit linked plans), multi – purpose insurance plans,
pension plans, child plans and money back plans. (www.wikipedia.com)
CHAPTER II

PROFILE OF
ORGANIGATION
 INTRODUCTION TO THE COMPANY

COMPANY PROFILE OF RELIANCE LIFE INSURANCE

FOUNDER

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

economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer
still have left behind a legacy that is more enduring and timeless.

 As with all great pioneers, there is more than one unique way of describing the
true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the
proud patriot, the leader of men, the architect of India’s capital markets, the
champion of shareholder interest.

 But the role Dhirubhai cherished most was perhaps that of India’s greatest
wealth creator. In one lifetime, he built, starting from the proverbial scratch,
India’s largest private sector enterprise.

 When Dhirubhai embarked on his first business venture, he had a seed capital of
barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he
converted this fledgling enterprise into a Rs 60,000 crore colossus—an
achievement which earned Reliance a place on the global Fortune 500 list, the
first ever Indian private company to do so.

 Dhirubhai is widely regarded as the father of India’s capital markets. In 1977,

when Reliance Textile Industries Limited first went public, the Indian stock
market was a place patronised by a small club of elite investors which dabbled
in a handful of stocks.
 Undaunted, Dhirubhai managed to convince a large number of first-time retail
investors to participate in the unfolding Reliance story and put their hard-earned
money in the Reliance Textile IPO, promising them, in exchange for their trust,
substantial return on their investments. It was to be the start of one of great
stories of mutual respect and reciprocal gain in the Indian markets.

 Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of

the greatest growth stories in corporate history anywhere in the world, and went
on to become India’s largest private sector enterprise.

 Through out this amazing journey, Dhirubhai always kept the interests of the
ordinary shareholder uppermost in mind, in the process making millionaires out
of many of the initial investors in the Reliance stock, and creating one of the
world’s largest shareholder families.

ABOUT RELIANCE

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of 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.

 Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)

registered with the Reserve Bank of India under section 45-IA of the Reserve
Bank of India Act, 1934.
 Reliance Capital sees immense potential in the rapidly growing financial
services sector in India and aims to become a dominant player in this industry
and offer fully integrated financial services.

 Reliance Life Insurance is another step forward for Reliance Capital Limited to
offer need based Life Insurance solutions to individuals and Corporates.

CORPORATE OBJECTIVE

At Reliance Life Insurance, we strongly believe that as life is different at every

stage, life insurance must offer flexibility and choice to go with that stage. We
are fully prepared and committed to guide you on insurance products and
services through our well-trained advisors, backed by competent marketing and
customer services, in the best possible way.

 It is our aim to become one of the top private life insurance companies in
India and to become a cornerstone of RLI integrated financial services
business in India.

CORPORATE MISSION

 “To set the standard in helping our customers manage their financial
future”.

The mission of Reliance Life Insurance Company Limited is to be the best in

every sphere- business results, customer care and employee focus. The aim
of the company is to Think Bigger and Think Better.
CORE VALUES
Reliance Life Insurance Company Limited has some core values which are
listed as follows:
1) Result Oriented
2) Performance Driven
3) Customer Focused
4) Learning and Development Oriented
5) Employee Centric
6) Informal and Fun
FUTURE PLANS
Forty-four new branches to be opened across the country in the
coming months; and a pan India presence with 162 branches in the
coming year.
A state-of-the-art customer care centre will provide continuous,
responsive services to the caller and promptly address queries, collate
feedback and suggestions from the caller, who may be both
prospective and existing clientele and from channel partners in
Chennai and Mumbai.
It will be launching additional products aimed at providing
unparalleled service to its valued clientele.
HEAD – OFFICE
Reliance Life Insurance Company Limited,
The Trapezium,
39, First Floor,
Nelson Manickam Road,
Chennai – 600 029.
BRANCHES
They have so many branches and substations in the India. They have around
160 branches in the India. And they have planned to open more branches
across the country in the coming months.

BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY

RELIANCE LIFE INSURANCE
INSURANCE PLANS AVAILABLE

1. Products (Individual Plans)

Savings (Endowment)

2. Reliance Endowment Plan

(formerly Divya Shree)

3. Reliance Special Endowment Plan

(formerly Subha Shree)

4. Reliance Cash Flow Plan

(formerly Dhana Shree)

5. Reliance Child Plan

(formerly Yuva Shree)

6. Reliance Whole Life Plan

(formerly Nithya Shree)

Pensions

7. Reliance Golden Years Plan

(formerly Bhagya Shree)

Investments
 8. Reliance Market Return Plan
(formerly Kanaka Shree)

9. Risk / Protection

10. Reliance Term Plan

(formerly Raksha Shree)

Products (Group / Corporate Plans)

11. Risk (Protection)

Reliance Group Term Assurance Policy

(formerly Group Term Assurance Policy)

Reliance EDLI Scheme

(formerly EDLI Scheme)

12. Pensions

a. Reliance Group Gratuity Policy

(formerly Group Gratuity Policy)

b. Reliance Group Superannuation Policy

(formerly Group Superannuation Policy)

13. Reliance Money Guarantee Plan

 Tax Benefits

INCOME TAX GROSS ANNUAL HOW MUCH TAX HDFC STANDARD

SECTION SALARY CAN YOU SAVE? LIFE PLANS

Sec. 80C Across All income Upto Rs. 33,990 All the life insurance
Slabs saved on investment plans.
of
Rs. 1,00,000.

Sec. 80 CCC Across all income Upto Rs. 33,990 All the pension plans.
slabs. saved on Investment
of Rs.1,00,000.

Sec. 80 D Across all income Upto Rs. 3,399 saved All the health insurance
slabs on Investment of riders available with the
Rs. 10,000. conventional plans.

TOTAL SAVINGS
Rs37,389
POSSIBLE
Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80
D, calculated for a male with gross annual income
exceeding Rs. 10,00,000.

Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free,
subject to the conditions laid down therein.
 CHAPTER III

COMPITATOR STUDY
 MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

 Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to

spread the message of life insurance in the country and mobilise people’s savings
for nation-building activities. LIC with its central office in Mumbai and seven
zonal offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and
Bhopal, operates through 100 divisional offices in important cities and 2,048
branch offices. LIC has 5.59 lakh active agents spread over the country.

The Corporation also transacts business abroad and has offices in Fiji, Mauritius
and United Kingdom. LIC is associated with joint ventures abroad in the field of
insurance, namely, Ken-India Assurance Company Limited, Nairobi; United
Oriental Assurance Company Limited, Kuala Lumpur; and Life Insurance
Corporation (International), E.C. Bahrain. It has also entered into an agreement
with the Sun Life (UK) for marketing unit linked life insurance and pension
policies in U.K.

In 1995-96, LIC had a total income from premium and investments of $ 5 Billion
while GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's
income grew at a healthy average of 10 per cent as against the industry's 6.7 per
cent growth in the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).

LIC has even provided insurance cover to five million people living below the
poverty line, with 50 per cent subsidy in the premium rates. LIC's claims settlement
ratio at 95 per cent and GIC's at 74 per cent are higher than that of global average
of 40 per cent. Compounded annual growth rate for Life insurance business has
been 19.22 per cent per annum
 General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government

company known as General Insurance Corporation of India (GIC) was formed by
the Central Government in November 1972. With effect from 1 January 1973 the
erstwhile 107 Indian and foreign insurers which were operating in the country prior
to nationalization, were grouped into four operating companies, namely, (i)
National Insurance Company Limited; (ii) New India Assurance Company
Limited; (iii) Oriental Insurance Company Limited; and (iv) United India Insurance
Company Limited.  (However, with effect from Dec'2000, these subsidiaries have
been de-linked from the parent company and made as independent insurance
companies). All the above four subsidiaries of GIC operate all over the country
competing with one another and underwriting various classes of general insurance
business except for aviation insurance of national airlines and crop insurance which
is handled by the GIC.

Besides the domestic market, the industry is presently operating in 17 countries

directly through branches or agencies and in 14 countries through subsidiary and
associate companies.

IN ADDITION TO ABOVE STATE INSURERS THE

FOLLOWING HAVE BEEN PERMITTED TO ENTER INTO
INSURANCE BUSINESS: -
The introduction of private players in the industry has added to the colors in the
dull industry. The initiatives taken by the private players are very competitive and
have given immense competition to the on time monopoly of the market LIC. Since
the advent of the private players in the market the industry has seen new and
innovative steps taken by the players in this sector. The new players have improved
the service quality of the insurance. As a result LIC down the years have seen the
declining phase in its career. The market share was distributed among the private
players. Though LIC still holds the 75% of the insurance sector but the upcoming
natures of these private players are enough to give more competition to LIC in the
near future. LIC market share has decreased from 95% (2002-03) to 82 %( 2004-
05).

1. HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), India’s leading housing finance institution and The Standard
Life Assurance Company, a leading provider of financial services from the United
Kingdom. Their cumulative premium income, including the first year premiums
and renewal premiums is Rs. 672.3 for the financial year, Apr-Nov 2005. They
have managed to cover over 11,00,000 individuals out of which over 3,40,000 lives
have been covered through our group business tie-ups.

2. Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings
together two large forces - Max India Limited, a multi-business corporate, together
with New York Life International, a global expert in life insurance. With their
various Products and Riders, there are more than 400 product combinations to
choose from. They have a national presence with a network of 57 offices in 37
cities across India.

3. ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and Prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was
amongst the first private sector insurance companies to begin operations in
December 2000 after receiving approval from Insurance Regulatory Development
Authority (IRDA). The company has a network of about 56,000 advisors; as well
as 7 banc assurance and 150 corporate agent tie-ups.

4. Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc.

5.Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group
and Sun Life financial Services of Canada.

 Tata AIG Life Insurance Company Ltd.

 SBI Life Insurance Company Limited

 ING Vysya Life Insurance Company Private Limited

 Allianz Bajaj Life Insurance Company Ltd.

 Metlife India Insurance Company Pvt. Ltd.

 AMP SANMAR Assurance Company Ltd.

  Dabur CGU Life Insurance Company Pvt. Ltd.

1. Royal Sundaram Alliance Insurance Company

The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram
Finance Limited started its operations from March 2001. The company is Head
Quartered at Chennai, and has two Regional Offices, one at Mumbai and another
one at New Delhi.

2. Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj
Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise,
stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001
to conduct General Insurance business (including Health Insurance business) in
India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj
Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany.

3. ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited is a joint venture between

ICICI Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings
Limited. ICICI Bank is India's second largest bank, while Fairfax Financial
Holdings is a diversified financial corporate engaged in general insurance,
reinsurance, insurance claims management and investment management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited,
is one of Canada's oldest property and casualty insurers. ICICI Lombard General
Insurance Company received regulatory approvals to commence general
insurance business in August 2001.

4. Cholamandalam General Insurance Company Ltd.

Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint

venture of the Murugappa Group & Mitsui Sumitomo. 

Chola-MS commenced operations in October 2002 and has issued more than 1.4
lakh policies in its first calendar year of operations. The company has a pan-Indian
presence with offices in Chennai, Hyderabad, Bangalore, Kochi, Coimbatore,
Mumbai, Pune, Indore, Ahmedabad, Delhi, Chandigarh, Kolkata and Vizag.

5. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture company, formed
from the Tata Group and American International Group, Inc. (AIG). Tata AIG
combines the strength and integrity of the Tata Group with AIG's international
expertise and financial strength. The Tata Group holds 74 per cent stake in the two
insurance ventures while AIG holds the balance 26 per cent stake.

Tata AIG General Insurance Company, which started its operations in India on
January 22, 2001, offers the complete range of insurance for automobile, home,
personal accident, travel, energy, marine, property and casualty, as well as several
specialized financial lines.
Market Share: -

Sr.No Insurer Market Share (%)

1 LIC 71.44
2 Bajaj Allianz 7.56
3 ICICI Prudential 7.35
4 HDFC Standard 2.87

5 SBI Life 2.31

6 Birla SunLife 1.89
7 Tata AIG 1.29

8 Max New York 1.23

9 Aviva 1.14
10 Kotak Mahindra OLD Mutual 1.11
11 ING Vysya 0.79
12 Reliance Life 0.54
13 MetLife 0.4
14 Sahara Life 0.06
15 Shriram Life 0.03

Now let’s depict the market share of these players on diagram

Here we can see from the diagram that LIC is the market leader and it
commands the major part of the total life insurance market. Its market share
was approximately 98% before 2000 but after the entry of private players it
has significantly decreased.
Among private players Bajaj Allianz stands first. It has the market share of
approximately 7.56% in the total market and it constitutes 40% of the market
share among private players.
HDFC Standard comes third. SBI Life insurance Company Limited comes
fourth. ICICI Prudential is also one of the fastest growing life insurance
companies in India.
Rest of the players has market share below 2%.
3) Capital Fund: -

S. No Insurer ( Rs in Crore )
1 ICICI Prudential 375
2 Max New York 250
3 HDFC Standard 218
4 Bajaj Allianz 200
5 Tata AIG 183
6 Birla Sun Life 180
7 AVIVA 155
8 OM Kotak 153
9 Reliance Life 126
10 SBI Life 125
11 Met Life 110
12 ING Vysya 110

2.3 Reliance Policies

(1) Reliance Children Plans

What could make you happier than knowing, that your child's future is secure?
Nothing, we suppose. Which is why, Reliance Life Insurance brings to you
Reliance Secure Child Plan, a unit-linked Insurance Plan, that gives you the
freedom to enjoy today with your child, because his tomorrow is in safe hands.

 Do you see your child becoming a trailblazer?

 Will they create the ultimate symphony or give sports a new dimension?

Our children may just be the ones to end the arms race and wipe out poverty from
the face of the Earth. But for them to be able to aim for the skies, YOU NEED TO
ACT NOW!
Introducing Reliance Secure Child Plan - a unique life insurance cum savings plan.
secure the future of your child.

Key Features
Insurance cover on the life of child
Your child is completely protected - we will continue to pay the
premiums even if you are not alive
Life time income to child in the event of disability
Return Shield option to protect your investment returns
Liquidity in the form of partial withdrawals
Capital guarantee available on maturity and on death of the child
for basic and top-up premiums
Option to package with Accidental Death and Total and
Permanent Disablement Rider, Critical Conditions Rider and Term
Life Insurance Benefit Rider.

(2)Reliance Health + Wealth Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE
INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.

There are times when late working hours take precedence over your health check-
ups. And there are times when a visit to the doctor seems more important than
dividends on your shares. In the rat race to make money, we often forget to take
care of ourselves.

We understand this predicament. Here is a plan that will ensure that your wealth
keeps increasing constantly and yet your health does not take a backseat. The
Reliance Wealth Health Plan. A plan that gives you the benefits of wealth bhi.
health bhi.

Life changes. And as it does, so do your priorities. After all, the circumstances of
your life can determine the type of health coverage you need.

India has made rapid strides in the health sector. Since Independence, life
expectancy has gone up markedly and survival rates have also increased, still
critical health issues remain. Infectious diseases continue to claim a large number
of lives.
Reliance Wealth + Health Plan, a health insurance plan underwritten by Reliance
Life Insurance Company Limited, is designed to work in conjunction with
contributions towards savings.

Key Feature
A Unit Linked plan with Unique Savings Component
Twin benefit of market linked return and health protection
Choose from two different plan options
Flexibility to take care of your family’s health
Flexibility to switch between funds / plan options
Option to pay Top-ups

(3) Reliance Pension Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE
INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.

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 Super 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.

Key Features – Reliance Pension Policy :

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 &
70 years
Eight 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

(4) Reliance Whole life insurance policy

You’ve always loved your family. As a loving person you want to be rest assured
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
Choice of extending your insurance coverage till age 99
Convenient Premium Payment Term
Wealth creation through bonus additions
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 and Total and Permanent Disablement Rider
Policy Loan available after three full years premium payment

ROLE OF IT AT RELIANCE LIFE INSURANCE

1) World Class Data Centre: -
They plan to establish a Primary Data Centre at Navi Mumbai
(Dhirubhai Ambani Knowledge City) which will cater to their company
needs across India, with fail-over capability to their Chennai Data Centre
within the same business day in occurance if an incident or Disaster
happens.

2) Inter Office Connectivity: -

All their Branch / Area and Regional offices will be
interconnected to their Data Centre with a 24x7 access to Core
Applications like Lotus Mail, Life-Asia and Internet Applications. This
will enable their associates to work faster and better with high-speed
Internet connectivity and also ensure faster Turn Around Time for their
customers.

3) Customer Care Centre: -

They will host a centralized Customer Care Centre at
Dhirubhai Ambani Knowledge City at Navi Mumbai, which cater
services to internal and external queries and complications. A customer
Relationship Management Tool (CRM) and Lead Management System
(LMS) are in progress.

4) Web Portal: -
This portal will be an interface between both internal employees
and their external users. Some of the functions included in their portal are
Policy Tracking Systems, Corporate News, Quality Checking System,
Under Writing Medical System, and Agent Management System etc.

5) R World: -
Reliance Mobile R-World will provide online information about
their Company, Products, and Policy Services to their existing customers,
Agents/Advisors and Lead Generators.

6) SMS Alerts: -
SMS Alerts will be provided to their Sales Managers about the
latest happenings like Contests and Campaigns, Employee Alerts will
include Company News and Welcome/Birthday/Anniversary message
etc. Customer Alerts will include Welcome/Birthday/Anniversary
message, Policy Dispatch Details, Policy Servicing SMS like Premium
Receipt and Renewal Premium reminders etc.

7) Life and Group Asia: -

Single Life and Group Life details will be captured and managed
by Life and Group Asia. A common middleware between these
applications will enable Group Life Customers to view their individual
Single Life Insurance Plan details taken with Reliance Life Insurance and
vice versa.

8) Advisor Lounge: -
It is a dedicated area for Reliance Life Insurance
Agents/Advisors in all the branches across India. This Lounge will be
equipped with desktops and printers with Internet connectivity, where
their Advisors can bring in the prospects and can have discussions across
the table and they can create and print quotes. The Agents/Advisors can
use this area to service their existing customers.

9) Document Management System: -

DMS will enable both policy issuance and contract servicing
through an automated workflow, which yields a faster Turn around Time
to both internal and external users. This application will enable them to
have a paperless office and thus mitigate the risk of losing vital
records/papers.

10) Wireless Data Access: -

This will enable identified Top Sales Managers and Top Advisors
to access real time data for both LMS and CRM on the fly through Handheld
PDA device.

11) SAP – ERP Modules: -

SAP (Finance and HR Modules), will automate the Expense,
Travel and Leave Management Systems.

DISTRIBUTION CHANNEL
Reliance Life Insurance Company Limited is using five types of
distribution channel, which are as follows:
1) Agency: -
Independent insurance agents represent a number of companies
and can research these companies’ products to find the right combination
for their clients. Independent agents & insurance producer groups are
growing in prevalence. Although producer groups are in their infancy,
their emergence may potentially be realignment in the distribution of
financial services. Independent shops realized that by pooling production
and funding a central support office, they had increased buying power.
The one type of distribution channel, which Reliance Life
Insurance Co. Ltd is using, is an agency. This channel works as follows:
Branch
Managers
Advisors
Customers
2) Bank Assurance: -
While a lot of bank relationships with insurance companies
have been established, life insurance sales have been slower than one
would expect he primary bank insurance activities have been the
distribution of annuities, credit life, and direct marketing insurance.
Banks are failing to incorporate successful sales tactics used to sell other
financial services like investments.
Another type of distribution channel is bank assurance. This
channel is tie up with banks. In this channel the advisors using or
targeting the bank customers to make a business with them i.e., to sell the
policy of the company.
3) Corporate:-
To gain a better understanding of the demand amongst
independent advisors for trust services and to gain a better feel for how
independent advisors handle trust services, a research was performed
with independent advisors across several broker/dealers and custodians.
The interviews revealed that demand is greatest for living trusts among
independent advisors, followed by demand for corporate trustee services.
Another type of distribution channel is corporate, which are
for employee benefits. This channel is tie up with corporate or small
enterprises. Through these small enterprises, the advisors will sell the
products/policy to customers of the small enterprises.
4) Rural Benefits:-
Brokerage firms have gained much of the institutional and
personal trust business lost by the banks. These firms have steadily
captured assets, primarily at the expense of the banks. The number of
non-bank trust companies has increased in recent years as independent
trust companies have emerged and more broker/dealers are integrated
services. Insurance companies view full-service brokers as a potentially
new distribution channel as well.
Another type of distribution channel is rural benefits. This
channel works as a dealership. In this channel, the dealers will sell the
policy to the target customers.
5) Web World:-
Direct sales of life insurance are growing rapidly, but many of
the traditional full-serve players seem to be letting it go. Across all
financial services, consumers are expressing a willingness to deal with a
variety of providers on the web. Web sites are starting to pop up offering
consumer insurance products especially designed for distribution over the
web.
Another type of distribution channel is web world. This channel
is tie up with customer database. In this channel, the advisors will sell the
policy to the target customers, which are taken from the customer
database, are listed in the website.