Beruflich Dokumente
Kultur Dokumente
PROJECT REPORT
AT
MASTER OF BUSINESS
ADMINISTRATION
(Industry Integrated)
TO
BY
SWAREEM KHAN
Reg No.--87753904
JULY 2008
Certificate
This is to certify that the Project Report at
TO
Under my supervision and guidance and that no part of this report has been
submitted for the award of any other degree/diploma/fellowship or similar
titles or prizes.
FACULTY GUIDE
Signature :
STUDENT’S DECLARATION
Is my original work and the same has not been submitted for the award of any
other Degree/Diploma/fellowship or other similar titles or prizes.
ACKNOWLEDGEMENTS
With all sincerity I would like to express my gratitude to all those who gave
me the possibility to complete this report. I am deeply indebted to my project
guide Mrs. Meetu Verma, for her invaluable guidance throughout the duration
of the project, I would also like to thank Mr. Rohit Chopra [Vice Chairman ]
for providing special inputs.
SWAREEM KHAN
5
CONTENTS
CHAPTER 1) INTRODUCTION
CHAPTER 6) APPENDIX
CHAPTER 7) BIBLIOGRAPHY
7
CHAPTER 1) INTRODUCTION
There are mainly two parties involved in this – the insurer and the
insured. The insurer is the insurance company who will provide the
coverer to the insured against any financial losses. The insured may
be an individual person or a group of people like an employer,
members of a society, etc.
A policy is the contract between the insurer and the insured, which
states the risk covered, the exclusions,if any, and the benefits
reimbursed on the happening of an event likr death, illness,etc. The
policy is paid through what is called a premium, which is a set amount
that must be paid by the insured on a monthly, quartely,half yearly and
annual basis. On the happening of an event like death,
disabillity,fire,etc, for which the insured is covered, the benefit amount
stated in the policy contract can be claimed by the insured.
customer will need to pay over the term of the insurance policy in
exchange for coverage. When customer have agreed to pay this
amount and the insurance company has agreed to insure customer,
then the customer will receive a copy of the policy detailing the terms
and conditions of th policy.
INSURANCE COMPANIES
Life Insurance
regulation of the industry were made with the introduction of the Indian
this Act were made until the Insurance Act was drawn up in 1938.
high level of protection the Act gave to the public through regulation
and control. When the Act was changed in 1950, this meant far
protect the public from any adversarial policies from one single party),
11
1956, the market contained 154 Indian and 16 foreign life insurance
by some of the players against the interests of the consumers” then led
reach.”
in India are:
1912: The Indian Life Assurance Companies Act enacted as the first
insurance businesses.
12
insuring public.
1956: The market contained 154 Indian and 16 foreign life insurance
companies.
General Insurance
the 17th century. As for Life Insurance, the British brought General
years and years until, in 1971, the Indian Government decided that the
all the 107 companies into four companies, depending on the sort of
Ltd., the New India Assurance Company Ltd., and the United India
subsidiaries.
1907: The Indian Mercantile Insurance Ltd. set up, the first company
minimum solvency margins and the Tariff Advisory Committee set up.
nationalize the general insurance business in India with effect from 1st
incorporated as a company.
With the largest number of life insurance policies in force in the world,
India’s insurance sector accounted for 4.1 per cent of GDP in 2006-07,
up from 1.2 per cent in 1999-2000, far ahead of China where insurance
accounts for just 1.7 per cent of the GDP and even the US where
insurance penetration stands at 4 per cent of the GDP. One area that
continues to cause concern is the number of customer grievances in
insurance, especially in a few specific classes. This calls for more
transparency in designing the contract wording and on insisting that
the applicant is sufficiently informed about the coverage and more
particularly the exclusions. In addition, the legislation itself requires to
be transformed to meet the needs of the emerging markets. The Law
Commission of India which has gone extensively into the various
insurance laws has submitted its report. Further, the expert committee
headed by Mr. K.P. Narasimhan has also submitted its proposals
requiring amendments to the laws.
The demand for health insurance covers has seen a healthy increase,
and today the sector is the fastest growing segment in the non-life
insurance industry in India, which grew at over 40% last year. It is also
emerging as an increasingly significant line of business for life
insurance companies. During the last five years, the premium from
health insurance products in non-life companies has grown from 675
15
Led by the Life Insurance Corporation (LIC), the life insurance industry
registered a growth of 110 per cent in fiscal 2006-07, taking the total
business to US$ 19.2 billion from the previous year’s US$ 9.1 billion.
The life insurance market has grown rapidly over the past six years,
with new business premiums growing at over 40 per cent per year
owing to the entry of a host of new players with significant growth
aspirations and capital commitments.
The total life insurance market premiums is likely to more than double
from the current US$ 40 billion to US$ 80-US$100 billion by 2012, says
a study by McKinsey. The study titled ‘India Insurance 2012: Fortune
Favours the Bold,’ expects a rise in premiums between 5.1 and 6.2 per
cent of the GDP in 2012 from the current 4.1 per cent driven by greater
16
Life insurance penetration in India - which was less than 1 per cent till
1990-91 - increased to 2.53 per cent in 2005, and to 3 per cent in
2006-07. While the impetus for growth has come from both public and
private insurers, the number of players in this segment have also
increased to 16 (15 in private sector), with Life Insurance Corporation
(LIC) being the dominant player (market share of over 74 per cent).
The general insurance industry grew 11.6 per cent between April and
November in 2007-08 with robust performances by private players.
The 13 non-life insurers collected US$ 4.7 billion in premium against
US$ 4.2 billion in the same period last year. While the public sector
could increase its premiums by just 3.57 per cent, 9 private sector
players clocked premium growth of 26.49 per cent. Private sector
players’ market share has grown to about 40 per cent in FY08 as
compared to the public sector’s 60 per cent..
17
The Indian insurance industry also estimated that during 2008-09, the
state-owned general insurance companies are aiming to touch the total
premium income of around Rs 20,000 Crore (US$ 4.70 Billion), a 23%
jump from Rs 16,259 Crore (US$ 3.82 Billion) in 2007-08. In 2007-08,
the total premium covered by non-life insurance companies in India
was Rs 28,126.29 Crore (US$ 6.61 Billion) against Rs 24,998.41 Crore
(US$ 5.87 Billion) in 2006-07.
Moreover, the detariffing will initiate the launch of latest and innovative
insurance products and exploitation of vast untapped insurance market
would boost the revenue growth because the number of insurance
companies is growing in India. The growth in the Indian insurance
industry is also anticipated because the insurance sector is expected
to pay an additional focus on micro and retail insurance in villages,
which offers an extensive growth opportunity to players.
April 2007, current FY’s first month, saw new businesses expand by
49%, whereas general insurance players witnessed 16% increase
during the same month.
Outstanding performance of SBI Life, ICICI Prudential, and LIC helped
the Indian life insurance industry in mopping up almost Rs 2,892 crore
in April this year, whereas it was Rs 1,996 crore in the same month last
year. On the other hand, Reliance Life, ING Vysya, and Bajaj Allianz
were amongst those insurers that came across a decline in their
premium collection over the review period, as per the data compiled by
Insurance Regulatory & Development Authority.
19
Selling almost 15,89,684 policies during this April, LIC - the largest life
insurer in India -witnessed 57% growth in its new premiums that
reached to Rs 2,134 crore. LIC grabbed a market share of almost
71.56% during this April. Non-life or general insurance industry saw a
growth of 16% during this month, and ICICI Lombard was the second
largest player in this segment. Business Standard published this in
news on 14 June 2007.
Looking at the current scenario, it can be made out that the four
established public-sector players namely, National Insurance, United
India, Oriental Insurance, and New India Assurance, may have to face
stiff competition from private players like Bajaj Allianz, Reliance
General, and ICICI Lombard, as per Business Standard.
Dhirubhai H Ambani. Fewer still have left behind a legacy that is more
• As with all great pioneers, there is more than one unique way of
interest.
• But the role Dhirubhai cherished most was perhaps that of India’s
seed capital of barely US$ 300 (around Rs 14,000). Over the next
Reliance a place on the global Fortune 500 list, the first ever Indian
families.
Reliance Life Insurance, one of India’s top private sector life insurance
companies, on 18/06/2008 unveiled a unit-linked insurance plan (ULIP)
that offers guaranteed contributions of up to 250 percent, apart from
investment returns and maturity benefits.
The plan offers eight different fund options, including the safe GILT
fund as well as sectoral funds like infrastructure, energy and mid-cap
which provide relatively higher returns. Moreover, RSIP provides cover
to even for children of 30 days and covers life of the insured up to 20
times of the annual premium, depending on the age.
“The policyholder can avail all these benefits with the additional
features of a unit linked plan. We aim to make it our top-selling
product, given the additional values and sound maturity benefits, and
expect a sales contribution of 20-25 percent by the end of this financial
year,”' said Nandagopal.
Achievements
RLIC has been one of the fast gainers in market share in new
business premium amongst the private players with an incremental
market share of 4.1% in the Financial Year 2007-08 – from 3.9% in
April 07 to 8% in Feb 08.
This is Reliance Life's first pure equity unit linked insurance plan (ULIP)
and has added Shariah compliant features like having no investments
into industries such as non-banking finance, liquor, cigarettes, tobacco,
and sugar among others, a company statement said.
The RSIP is designed to provide an opportunity to invest funds in eight
different fund options, including the Gilt and sectoral funds like
infrastructure, energy and mid-cap which, the company stated, provide
relatively higher returns.
provides a plan for a child of 30 days and covers life of the insured up
to 20 times of the annual premium, depending on the age.
The plan claims to be the ‘only plan to offer fixed income for life even in
case of accidental disability of the child’, to ‘offer rewarding online
community for child’s overall development’ and boasts that ‘the
company also donated Rs 5 Lakh to Akanksha Foundation, for
underprivileged children’. Reliance Life Insurance are very optimistic
about the new plan and hope that customers will be attracted to its
benefits and bonuses.
“The Reliance Secure Child Plan aims to offer an innovative product
with unique and fun-filled benefits to children while securing their
future. This is in line with our strategy to offer best-in-class products to
our customers”, said Mr. P. Nandagopal while launching the product.
The plan also offers an inbuilt waiver of premium benefit in the event of
the death of the insured proposer (parent), that protects the future of
the child by paying all the future premiums, so that the plan remains in
full force.
27
ORGANISTION
28
ORGANIZATION
CHART
Shri Anil D.Ambani is the chairman of the Reliance ADA Group, namely
Executive Officer, and was centrally involved in every aspect of the company’s
Shri jhunjhunwala was appointed to the Board on March 7,2003 and was
Pvt.Ltd.
Solutions Ltd, Ambuja Cement Limited, SME Rating Agency of India Limited,
Ishan Real Estate PLC and Reliance General Insurance Company Ltd. He
Bank of India.
• Shri C.P.Jain
30
Ltd. Shri jain has an illustrious career spanning over four decades of
Designations Names
ORGANIZATION
Savings (Endowment)
Pensions
Investments
9. Risk / Protection
33
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
INSURANCE COMPANY.
the commission could range from 5 per cent to 40 per cent of first-
really appreciate the policies and insist in taking the policy, but after
my meeting with her she ended up in taking two policies one for
herself and second for her husband.
My work also ensures that the customers are always at ease and this
is done through providing after-sales services so that all their
grievances can be easily and timely managed and the reputation of
my organistion does not suffer because there is a saying that, a
satisfied customer will bring one more customer but a dissatisfied
customer takes away four with him.
I also contributed by achieving the targets set by the company for
me. I met my selling targets before my training.
41
SUMMARY OF FINDINGS
SUMMARY OF LEARNING
1. As the people think that insurance is a tool to protect their family & a tax
saving device. They are aware of the fact & realizing its, importance. The
company should try to expand & build up its infrastructure because there is a
2. Company should come up with its more branches in India. With the
objective and goals to meet the demands & expectations of the public.
Because the entrance of private players will increase the competition and it
should be easy for them to penetrate into the market and secure a good
position if they pay greater attention to the service part provided to their
4 .As seen from the survey that at present 70% of the customer are having
insurance policy out of which 87.5% of the customer are planning for new
investments. So it can be a good potential for the company and they should
I was able to know the market position and competitors of Reliance Life
insurance in the insurance sector. The concept that people have in mind was
easily known taking to them which the real image can be easily predict by
listening to their experiences related to the insurance sector. By working with
Reliance life Insurance, I was able to learn about its organizational culture and
the way of their working. The most important thing, which I learned by
working as a marketer, was the way of communicating and convincing people
and how to determine their needs.
I also learnt about the various products offered by the Reliance life Insurance.
I learnt about the various investments and protection plans of the company.
43
The most important thing that I leartn is to handle customers. I learnt a lot
from the customers about the minor things related to insurance. I learnt about
the working environment of the Reliance Life insurance and its system.
By working in Reliance life insurance I came to know that it has built internal
and external structures to support the delivery of its business goals. The
regional structure is the best way of supporting this growth, allowing attention
to local requirement while at the same building on a clear strategic direction
from the center. A culture of innovation, teamwork and partnership means that
the reliance has a firm foundation of relationships and open communication
channels on which to build its growth.
As working there I came to know about some limitations in the system which
I want to recommend. Through my research, it was known that this company
has some limitatrions with the help of views presented by the people. Ig this
company makes some changes, it can meet its objectives easily and can attain
number one position in the insurance sector.
1 .It should reduce its paper work, as for purchasing the policy they have to go
through a lot of formalities.
44
2.) It should take less time in delivering the policy to the customers.
3.) The tele-calling department need to be improved, they must not repeat the
phone calls to the same customer as repeated calls on the same topic irritate
them.
45
ANNEXURES AND
QUESTIONNAIRE
46
QUESTIONNAIRE
a) LIC
b) ICICIPRUDENTIAL
b) TAX DEDUCTIONS
c) FUTURE INVESTMENT
47
a) LOW PREMIUM
d) REPUTATION OF COMPANY
_____________________________________________________
a) A SAVING TOOL
b) NOT SATISFIED
c) NOT RESPONDING
48
b) NOT SATISFIED
c) NOT RESPONDING
YES NO
a) LIC
b) NSC
c) BONDS
d) PPF
e) PF
f) EPF
a) FIXED ASSETS
b) BANK DEPOSITS
c) JEWELLERY
e) SHARES
f) INSURANCE
49
b) SECURITY
c) TAX BENIFITS
a) AFTER 25 Yrs
b) AFTER 35 Yrs
c) AFTER 45 Yrs
d) ANYTIME
a) RIGID PLANS
b) NON-USER FRIENDLY
c) UNSATISFATORY SREVICES
d) NON-AGGRESSIVE
e) SATISFACTORY
f) GOOD
g) VERY GOOD
a) A TRUSTED NAME
c) GOOD PLANS
d) ACCESSIBILITY
50
a) YES
b) NO
c) UNCERTAIN
THANK YOU
NAME:_________________________
ADDRESS:______________________
______________________________
OCCUPATION:___________________
P
51
Reliance
Super InvestAssure Plan
A Reliance Capital Company
As a customer you have the liberty to choose between eight fund options.
The premium contributions made by you, net of Premium Allocation
Charges are invested in funds of your choice. The units are allocated
depending on the price of units for the funds. The fund value is the total
value of units that you hold across all the unit-linked funds.
52
On the 10th policy anniversary 50% of first year’s basic premium paid by the
policyholder will be added to the fund value as a guaranteed addition.
Similar guaranteed additions will be added on every 5th policy anniversary
after the 10th policy anniversary till the policy is in force.
Sum Assured:
Minimum Sum Assured: Annualized Premium payable for five years
Maximum Sum Assured: depends on the age at entry.
Age at entry (last birthday) Maximum Sum Assured
0 to 40 20 times of Annualized Premium
41 to 45 15 times of Annualized Premium
46 to 50 10 times of Annualized Premium
51 to 60 5 times of Annualized Premium
Benefits
BIBLIOGRAPHY
1.) Google.com
2.) Reliance Life Insurance
3.) Mrs.Meetu Verma