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    CHAPTER I

    INDIAN INSURANCE

    INDUSTRY

    AN OVERVIEW

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    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. Its 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 countrys 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

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    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.

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    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.

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    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

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    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.

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    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 companys ownership.

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    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)

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    CHAPTER II

    PROFILE OF

    ORGANIGATION

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    INTRODUCTION TO THE COMPANY

    COMPANY PROFILE OF RELIANCE LIFE INSURANCE

    FOUNDER

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

    economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer

    still have left behind a legacy that is more enduring and timeless.

    y As with all great pioneers, there is more than one unique way of describing thetrue genius of Dhirubhai: The corporate visionary, the unmatched strategist, the

    proud patriot, the leader of men, the architect of Indias capital markets, the

    champion of shareholder interest.

    y But the role Dhirubhai cherished most was perhaps that of Indias greatestwealth creator. In one lifetime, he built, starting from the proverbial scratch,

    Indias largest private sector enterprise.

    y When Dhirubhai embarked on his first business venture, he had a seed capitalof 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 colossusan

    achievement which earned Reliance a place on the global Fortune 500 list, the

    first ever Indian private company to do so.

    y Dhirubhai is widely regarded as the father of Indias capital markets. In 1977,when Reliance Textile Industries Limited first went public, the Indian stock

    market was a place patronised by a small club of elite investors which dabbled

    in a handful of stocks.

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    y Undaunted, Dhirubhai managed to convince a large number of first-time retailinvestors 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.

    y Under Dhirubhais extraordinary vision and leadership, Reliance scripted one ofthe greatest growth stories in corporate history anywhere in the world, and went

    on to become Indias largest private sector enterprise.

    y Through out this amazing journey, Dhirubhai always kept the interests of theordinary shareholder uppermost in mind, in the process making millionaires out

    of many of the initial investors in the Reliance stock, and creating one of the

    worlds largest shareholder families.

    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 Indias

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

    private sector financial services and banking companies, in terms of net worth.

    Reliance Capital has interests in asset management and mutual funds, stock

    broking, life and general insurance, proprietary investments, private equity and

    other activities in financial services.

    y 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.

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    y 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.

    y 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.

    y It is our aim to become one of the top private life insurance companies inIndia and to become a cornerstone of RLI integrated financial services

    business in India.

    CORPORATE MISSION

    y To set the standard in helping our customers manage their financialfuture.

    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.

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    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 PLANSForty-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.

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    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

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    8. Reliance Market Return Plan(formerly Kanaka Shree)

    9. Risk / Protection10.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. Pensionsa. Reliance Group Gratuity Policy

    (formerly Group Gratuity Policy)

    b. Reliance Group Superannuation Policy(formerly Group Superannuation Policy)

    13. Reliance Money Guarantee Plan

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    Tax Benefits

    INCOME TAX

    SECTION

    GROSS ANNUAL

    SALARY

    HOW MUCH TAX

    CAN YOU SAVE?

    HDFC STANDARD

    LIFE PLANS

    Sec. 80C Across All income

    Slabs

    Upto Rs. 33,990

    saved on investment

    of

    Rs. 1,00,000.

    All the life insurance

    plans.

    Sec. 80 CCC Across all income

    slabs.

    Upto Rs. 33,990

    saved on Investment

    of Rs.1,00,000.

    All the pension plans.

    Sec. 80 D Across all income

    slabs

    Upto Rs. 3,399 saved

    on Investment of

    Rs. 10,000.

    All the health insurance

    riders available with the

    conventional plans.

    TOTAL SAVINGS

    POSSIBLE

    Rs37,389

    Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80D, calculated for a male with gross annual incomeexceeding 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.

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    MMAAJJOORRPPLLAAYYEERRSS IINN TTHHEE IINNSSUURRAANNCCEE IINNDDUUSSTTRRYY IINN IINNDDIIAA

    y 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 peoples 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

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    global average of 40 per cent. Compounded annual growth rate for Life insurance

    business has been 19.22 per cent per annum

    y 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 CompanyLimited; (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

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    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 Indias leading private life

    insurance companies, which offers a range of individual and group insurance

    solutions. It is a joint venture between Housing Development Finance Corporation

    Limited (HDFC Ltd.), Indias leading housing finance institution and 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

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    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 DevelopmentAuthority (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.

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    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.

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    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 AIGcombines 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 severalspecialized financial lines.

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    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%.

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    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 1807 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 youReliance Secure Child Plan, a unit-linked Insurance Plan, that gives you thefreedom to enjoy today with your child, because his tomorrow is in safe hands.

    y Do you see your child becoming a trailblazer?

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    y 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 fromthe 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 FeaturesInsurance cover on the life of childYour 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 disabilityReturn Shield option to protect your investment returnsLiquidity in the form of partial withdrawalsCapital guarantee available on maturity and on death of the childfor basic and top-up premiumsOption to package with Accidental Death and Total andPermanent Disablement Rider, Critical Conditions Rider and TermLife Insurance Benefit Rider.

    (2)Reliance Health + Wealth Policy

    UNDER THIS PLAN THE INVESTMENT RISK IN THEINVESTMENT 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 thandividends on your shares. In the rat race to make money, we often forget to takecare of ourselves.

    We understand this predicament. Here is a plan that will ensure that your wealthkeeps increasing constantly and yet your health does not take a backseat. TheReliance 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 ofyour life can determine the type of health coverage you need.

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    India has made rapid strides in the health sector. Since Independence, lifeexpectancy has gone up markedly and survival rates have also increased, stillcritical health issues remain. Infectious diseases continue to claim a large numberof lives.

    Reliance Wealth + Health Plan, a health insurance plan underwritten by RelianceLife Insurance Company Limited, is designed to work in conjunction withcontributions towards savings.

    Key FeatureA Unit Linked plan with Unique Savings ComponentTwin benefit of market linked return and health protection

    Choose from two different plan options

    Flexibility to take care of your familys healthFlexibility to switch between funds / plan optionsOption to pay Top-ups

    (3) Reliance Pension Policy

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

    Retirement means different things to different people, while some want to relaxand take a trip around the world, some want to start up a venture of their own, andpursue a dream harnessed for years. The power to make your autumn years speciallies only with you. The Reliance Super Golden Years Plan gives you the power andthe right kind of solution - A retirement plan that allows you to save systematicallyand 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 fromtraditional life insurance products with Vesting Age between 45 &70 yearsEight different investment funds to choose fromFlexibility to switch between fundsOption to pay Regular, Single as well as Top-up premiumsFlexibility to advance / extend your Vesting Age

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    Tax free commutation up to one third of Fund Value at VestingAge

    (4) Reliance Whole life insurance policyYouve always loved your family. As a loving person you want to be rest assuredthat they will be happy, even if something were to happen to you. With RelianceWhole Life Plan you can be sure that your family will receive that timely financialsupport they need.

    Go ahead, live your today to the fullest, without a worry about tomorrow.

    Key FeaturesInsurance protection till age 85Choice of extending your insurance coverage till age 99

    Convenient Premium Payment TermWealth creation through bonus additionsMore value for your money by way of High Sum Assured RebateGet Sum Assured plus Bonuses in case of your unfortunate deathOption to add two Riders Critical Illness and Accidental DeathBenefit and Total and Permanent Disablement RiderPolicy 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.

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    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.

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    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

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    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

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    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

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    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.