Project Report

On
Market Study of Reliance Life
Insurance Products and Customer
Support Services
(Special Reference to Reliance Life Insurance)

Submitted in partial fulfillment of the requirement of

RESEARCH SUPERVISOR SUBMITTED BY

Name: - Pawan Rai Name of the Candidate:- Gajala Hussain

Designation: - ABSM Enrollment No.:-

Institution: - Reliance Life Insurance

Directorate

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 PREFACE

This project is being submitted in the fulfillment Degree of BBA for

approval. Management theories provide the framework for investment
and financing decisions that expound several analytical methods
used to cope with various problems in an organization.

Practical training is very important part of the BBA course. There is

many a times a vast difference between the theoretical studies and
the actual practical implication. A feasible approach to fulfill the goal
would be that our institute works in co-ordination with the industry.

I, as a student of this course also got the valuable opportunity to learn

the practicability of the theories, which I have learnt. This training
helps us to develop and to become adroit.

An attempt has been made by me to study and look into the subject &
critically analyze it.

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 ACKNOWLEDGEMENT

It is very pleasant to express my thanks to Mr. Pawan Rai of

Reliance Life Insurance, Bikaner for giving me the opportunity to work
with their esteemed organization, Reliance Life Insurance, Bikaner,
and Rajasthan.

I am also thankful for his guidance and support without which

his project would not have completed.

I am also thank full to Operations Department for sharing there

precious time and in imparting practical exposure of there work.

I express my profound gratitude to all the staff for their

esteemed cooperation through out the duration of my summer
training.

I would also like to extend my heartfelt gratitude to Mr.

………………………(Faculty) of Jai Narayan Vyas University of
Jodhpur for allowing me to undertake this project.

I express my profound gratitude to all the staff for their

esteemed cooperation through out of duration of my summer training.
Finally I would like to express sincere thanks to my family for their
moral support, constant encouragement, patience & endurance in
preparation.

Gajala

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 TABLE OF CONTENTS

• INTRODUCTION ABOUT RELIANCE LIFE INSURANCE (RLI)

• PLANS OFFERED BY RLI
• FOUNDER O RELIANCE GROUP
• INDIAN INSURANCE INDUSTRY
• INSURANCE PLAYER
• INSURANCE BUSINESS
• WHAT IS LIFE INSURANCE?
• HISTORY OF LIFE INSURANCE
• LIFE INSURANCE MARKET IN INDIA
• INSURANCE REGULATORY & DEVELOPMENT AUTHORITY (IRDA)
• TYPES OF POLICIES IN MARKET
• IMPORTANCE OF LIFE INSURANCE
• REASONS FOR BUYING LIFE INSURANCE PRODUCTS
• TOP 10 TIPS FOR PURCHASING LIFE INSURANCE
• CUSTOMER SERVICE SUPPORT(UNDERWRITING)
• OBJECTIVE
• INTRODUCTION
• SELECTION
 INSURABLE INTEREST
 ABILITY TO PAY PREMIUMS

• RATE OF MORTALITY
 INSURANCE OF FEMALE LIVES
 RELATION BETWEEN TOTAL INSURANCE AND INCOME
 NON MEDICAL LIMIT
 EMPLOYER EMPLOYEE SCHEME
 HINDU UNDIVIDED FAMILY
 GUIDELINES FOR PARTNERSHIP INSURANCE
 KEYMAN INSURANCE
 INSURANCE ON NON RESIDENT INDIANS
 INSURANCE ON PERSON OF INDIAN ORIGIN

• OCCUPATION EXTRA
 OBJECTIVE OF OCCUPATION BOOKLET
 SOURCES OF INFORMATION ABOUT
OCCUPATION
 STEPWISE PROCESS OF FILLING UP THE
OCCUPATION QUESTIONNAIRE

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  FREQUENTELY ASKED QUESTIONS ABOUT
OCCUPATION EXTRA
• PROCESS FLOW FOR UNDERWRITING
 STANDARD ACCEPTABLE EVIDENCE OF AGE
 NON MEDICAL BUSINESS

• UNDERWRITING MEDICAL SUPPORT PROCESS

 STEPWISE PROCESS FOR CONDUCTING MEDICALS
 STEPWISE PROCESS FOR CONDUCTING MEDICALS FOR HNI

• CONCLUSION
• SUGGESTION & RECOMMENDATION
• BIBLIOGRAPHY

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About Reliance Life Insurance:-

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.

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

Chairman of Reliance Life Insurance

Regarded as one of the foremost corporate leaders of contemporary

India, Mr. Anil D Ambani, 48, is the chairman of all listed companies
of the Reliance ADA Group, namely, Reliance Communications,
Reliance Capital, Reliance Energy and Reliance Natural Resources.

He is also the president of the Mr. Dhirubhai Ambani Institute of

Information and Communications Technology, Gandhinagar.

An MBA from the Wharton School of the University of Pennsylvania,

Mr. Ambani is credited with pioneering several financial innovations in
the Indian capital markets. He spearheaded the country’s first forays
into overseas capital markets with international public offerings of
global depositary receipts, convertibles and bonds.

Under his chairmanship, the constituent companies of the Reliance

ADA group have raised nearly US$ 3 billion from global financial
markets in a period of less than 15 months.

Mr. Ambani has been associated with a number of prestigious

academic institutions in India and abroad.

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He is currently a member of:

• Wharton Board of Overseers, The Wharton School, USA

• Board of Governors, Indian Institute of Management (IIM),
Ahmedabad
• Board of Governors, Indian Institute of Technology (IIT), Kanpur
• Executive Board, Indian School of Business (ISB), Hyderabad

In June 2004, Shri Ambani was elected as an Independent member

of the Rajya Sabha – Upper House, Parliament of India, a position he
chose to resign voluntarily on March 25, 2006.

Select Awards and Achievements

• Voted ‘the Businessman of the Year’ in a poll conducted by The

Times of India – TNS, December 2006
• Voted the ‘Best role model’ among business leaders in the
biannual Mood of the Nation poll conducted by India Today
magazine, August 2006
• Conferred ‘the CEO of the Year 2004’ in the Platts Global
Energy Awards
• Conferred 'The Entrepreneur of the Decade Award' by the
Bombay Management Association, October 2002
• Awarded the First Wharton Indian Alumni Award by the
Wharton India Economic Forum (WIEF) in recognition of his
contribution to the establishment of Reliance as a global leader
in many of its business areas, December 2001

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Selected by Asia week magazine for its list of 'Leaders of the
Millennium in Business and Finance' and was introduced as the
only 'new hero' in Business and Finance from India, June 1999.

Vision

To build a global enterprise for all our stakeholders, and

A great future for our country,

To give millions of young Indians the power to shape their destiny,

The means to realize their full potential…

Value
• Policyholder Interest
• People Care
• Consumer Focus
• Excellence in Execution
• Team Work
• Proactive Innovation
• Leadership by Empowerment
• Social Responsibility
• Respect for Competition

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 • Policyholder Interest

We value the trust of Policyholders, and keep their interests

paramount in every business decision we make, every choice we
exercise

• People Care

We possess no greater asset than the quality of our human capital

and no greater priority than the retention, growth and well-being of
our vast pool of human talent

• Consumer Focus

We rethink every business process, product and service from the

standpoint of the consumer – so as to exceed expectations at every
touch point

• Excellence in Execution

We believe in excellence of execution – in large, complex projects as

much as small everyday tasks. If something is worth doing, it is worth
doing well.

• Team Work

The whole is greater than the sum of its parts; in our rapidly-changing
knowledge economy, organizations can prosper only by mobilizing
diverse competencies, skill sets and expertise; by imbibing the spirit

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of “thinking together” -- integration is the rule, escalation is an
exception

• Proactive Innovation

We nurture innovation by breaking silos, encouraging cross-

fertilization of ideas & flexibility of roles and functions. We create an
environment of accountability, ownership and problem-solving –based
on participative work ethic and leading-edge research

• Leadership by Empowerment

We believe leadership in the new economy is about consensus

building, about giving up control; about enabling and empowering
people down the line to take decisions in their areas of operation and
competence…

• Social Responsibility

We believe that organizations, like individuals, depend on the support

of the community for their survival and sustenance, and must repay
this generosity in the best way they can

• Respect for Competition

We respect competition – because there’s more than one way of

doing things right. We can learn as much from the success of others
as from our own failures

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• Governance

Our governance Great corporations, like individuals, are known for

their unwavering commitment to ethical values and principles. At
Reliance - ADA Group, we remain steadfast in our resolve to uphold
the highest standards of integrity, transparency and governance.

For us, corporate governance is not just about adhering to the formal
letter of the law, but about embracing the substantive spirit that lies
underneath; to move beyond the statutory obligations.

The key aspects of our corporate governance practice are:

• Monitoring of executive and director compensation

• Providing autonomy to the Board
• Implementing rigorous disclosure and transparency norms

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Plans Offered by Reliance Life Insurance:-

• Individual Plans
 Reliance Endowment Plan
 Reliance Special Endowment Plan
 Reliance Cash Flow Plan
 Reliance Child Plan
 Reliance Whole Life Plan
 Reliance Connect 2 Life Plan
• Retirement
 Reliance Golden Years Plan
 Reliance Golden Years Plan Value
 Reliance Golden Years Plan Plus
• Unit Linked
• Reliance Automatic Investment Plan
 Reliance Money Guarantee Plan
 Reliance Market Return Plan
• Risk / Protection
 Reliance Term Plan
 Reliance Simple Term
Plan
 Reliance Special Term
Plan
 Reliance Credit
Guardian Plan
 Reliance Special
Credit Guardian Plan

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 • Employee
Benefits Plans
• Risk
(Protection)
 Reliance Group Term Assurance Policy
 Reliance EDLI Scheme

• Pensions
 Reliance Group Gratuity Policy
 Reliance Group Superannuation Policy

Reliance Capital

Reliance Capital is one of India’s leading and fastest growing private

sector financial services companies, and ranks among the top 3
private sector financial services and banking companies, in terms of
net worth.

Anil Dhirubhai Ambani Group is the group of companies headed by

Anil Ambani. They companies under the group are Reliance Energy,
Reliance Capital, Reliance Communications, Reliance Health and
Reliance Entertainment.

The group was formed after the 2 feuding brothers Mukesh Ambani
and Anil, split Reliance Industries.

It has 8 million shareholders, making it one of the world's most widely

held stock.

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Reliance Capital has interests in asset management and mutual
funds, life and general insurance, private equity and proprietary
investments, stock broking and other activities in financial services.

Founder of Reliance Group (Dhiru Bhai Ambani)

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

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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 patronized 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.

INDIAN INSURANCE INDUSTRY

The market research report “Indian Insurance Industry Forecast
(2007-2009)” an in-depth analysis of the present and future of the
Indian Insurance Industry. The market research report looks in to the

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details as well as gives an overview of the Indian insurance market
with focus on the performance of the key players.
With the initiation of the deregulation in the Indian insurance market,
the monopoly of big public sector companies in life insurance as well
as general (non-life insurance) market has been broken. New private
players have entered the market and with their innovative approaches
and better use of distribution channels and technology, they are
eating in to the shares of established public sector companies in
Indian Insurance Market.
Since the deregulations have been put in to place, the market share
of LIC has come down to 71.4% in life insurance market while the
private players have captured around 17% market in the general
insurance segment. Having said that, public sector insurance
companies such as LIC and New India Assurance are registered
impressive double-digit growths, which reflects on the overall health
of the Indian insurance sector.
This report includes the key private players in the insurance market
such as ICICI Prudential, Bajaj Allianz, Birla Sunlife, Reliance Life
Insurance, ICICI Lombard and TATA AIG. It also includes the leading
competitors in the life insurance and general insurance segments
along with their market shares.

INSURANCE BUSINESS
Insurance business is divided into classes:

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1. Life Insurance 2) Fire Insurance 3) Marine Insurance and 4)
Miscellaneous Insurance.
Life Insurers transact life insurance business; General Insurers
transact the rest.
No composites are permitted as per law.

Life Insurance

Popular Products: Endowment Assurance (Participating), and

Money Back (Participating). More than 80% of the life
insurance business is from these products.

General Insurance

Fire and Miscellaneous insurance businesses are predominant. Motor

Vehicle insurance is compulsory.
Tariff Advisory Committee (TAC) lays down tariff rates for some
of the general insurance products (please visit website of GIC for
details).

What is LIFE INSURANCE ?

In the last several decades, the life insurance industry has
developed a number of products that combine the protection of life
insurance death benefits, with a significant cash value element.
Policies such as universal life, variable life, and universal-variable life

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allow an individual to purchase a single financial instrument
providing for both life insurance and long-term accumulation
goals. Such policies may serve as a form of “forced investment" for
those who find it difficult to put funds aside on a regular basis, but-who-
routinely-pay-their-bills.
"Selling of trust" is an interesting proposition but what is 'trust' and in
what way does it affects a consumer's purchasing behavior would be
instrumental in building the brand of an insurance company. This is
particularly true for life insurance which is a long term promise.
People in the rest of the world take insurance as an investment.
Indians are very emotional when it comes to insurance. As there isn't
any social security for the aged to rely on. Young parents look at
insurance products for children's education and support for spouse
after oneself. The paper work after maturity or demise for the
beneficiary should be simple. Trust is what matters most.
Additionally, life insurance company “annuities,” with either a fixed or
variable return, offer a tax-deferred method of accumulating
additional-retirement-funds.

o Uses: Life insurance products are commonly used for

long-term accumulation goals. Available cash values may also
serve as an "emergency reserve," if needed, or a source of loans,
since life policies frequently include features permitting borrowing
against these cash values.
o Risks: Fixed contracts rely on the financial strength of the
issuing life insurance company. Inflation may negatively impact a
fixed return contract. Variable contracts share the risks of the

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 underlying investments. Loans and withdrawals must be carefully
structured to avoid negative income tax results.

History of Life Insurance

The biggest challenge facing the insurance industry is to
differentiate themselves by making attractive and customized
products which suit the specific requirements of the prospective
policy buyers. This can be done to a great extent by giving a
totally tailored policy - according to a customer's requirement.
The business of life insurance in India in its existing form started in
India in the year 1818 with the establishment of the Oriental Life
Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in
India are:
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 to by the
Insurance Act with the objective of protecting the interests of the
insuring public.

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

Life Insurance Market in India

Many may not be aware that the life insurance industry of India is as
old as it is in any other part of the world. The first Indian life insurance
company was the Oriental Life Insurance Company, which was
started in India in 1818 at Kolkata. A number of players (over 250 in
life and about 100 in non-life) mainly with regional focus flourished all
across the country. However, the Government of India, concerned by
the unethical standards adopted by some players against the
consumers, nationalized the industry in two phases in 1956 (life ) and
in 1972 (non-life). The insurance business of the country was then
brought under two public sector companies, Life Insurance
Corporation of India (LIC) and General Insurance Corporation of India
(GIC).
In line with the economic reforms that were ushered in India in
early nineties, the Government set up a Committee on Reforms
(popularly called the Mahlotra Committee) in April 1993 to suggest
reforms in the insurance sector. The Committee recommended
throwing open the sector to private players to usher in competition
and bring more choice to the consumer. The objective was to improve

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the penetration of insurance as a percentage of GDP, which remains
low in India even compared to some developing countries in Asia.
Reforms were initiated with the passage of Insurance
Regulatory and Development Authority (IRDA) Bill in 1999. IRDA was
set up as an independent regulatory authority, which has put in place
regulation in line with global norms. So far in the private sector, 12 life
insurance companies and 9 general insurance companies have been
registered.
By any yardstick, India, with about 200 million middle class
households, presents a huge untapped potential for players in the
insurance industry. Saturation of markets in many developed
economies has made the Indian market even more attractive for
global insurance majors.
With the per capita income in India expected to grow at over 6%
for the next 10 years and with improvement in awareness levels, the
demand for insurance is expected to grow at an attractive rate in
India. An independent consulting company. The Monitor Group has
estimated that the life insurance market will grow from Rs. 218 billion
in 1998 to Rs. 1003 billion by 2008 (a compounded annual growth of
16.5%).

The Insurance Regulatory and Development

Authority (IRDA)
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

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to its schedule of framing regulations and registering the private
sector insurance companies. The other decisions taken
simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies were the launch
of the IRDA’s 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, which
are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has
put in a framework of globally compatible regulations. In the private
sector 12 life insurance and 6 general insurance companies have
been registered.
Since 1956, with the nationalization of insurance industry, the state-
run Life Insurance Corporation of India (LIC) has held the monopoly
in that country's life insurance sector. General Insurance Corporation
of India (GIC), with its four subsidiaries, was its counterpart in the
casualty sector. Over time, taking advantage of its monopoly and
virtual prerogative in establishing premiums, LIC has evolved into a
monolith. With around 600,000 agents in every nook and corner of
the vast country, it has created an enviable brand name, particularly
among the rural population of the country. It has around $40 billion as
its life fund and is a strong player in the financial sector. However, on
the qualitative side, it has very little to take pride in. And there lies the
potential for foreign players to challenge this behemoth.

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As is typical with monopolies, the premium rates charged by LIC are
among the highest in the world, and its track record in customer
service can, at best, be called shabby. With a huge unionized, rigid
workforce mostly in the clerical category, LIC runs the risk of high
fixed cost, which will be the deciding factor in productivity in the
competitive scenario. While boasting full-scale automation of its
operation, the truth is that its technology is outdated. The new
players, with the state-of-the-art technology under their belt, will be in
an advantageous position. 80% of LIC's business is procured by 20%
of its ill-trained agent force. The foreign player, with the domestic
partner's strong brand value, can test the unconventional distribution
channels like brokers, the Internet, the banking distribution system,
etc. Although foreign players may be tempted to keep their operation
in the big cities for the 'creamy layer' of the society, the real market
lies in rural India, which accounts for the lion's share of LIC's present
business. The foreign player must learn to adapt to Indian realities.
The well-publicized failures of world famous consumer goods
companies like Electrolux, Whirlpool, Reebok, Nike etc. to gauge the
Indian psyche and sentiments demonstrate the concept. They failed
in the areas of realistic pricing, product promotion and reaching to the
consumer. The foreign companies need to know the "ground realities"
to the details.

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Composition of Authority under IRDA Act,
1999
As per the section 4 of IRDA Act' 1999, Insurance Regulatory
and Development Authority (IRDA, which was constituted by an
act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

(a) a Chairman;
(b) five whole-time members;
(c) four part-time members,
(all appointed by the Government of India)

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, power and
function of IRDA.
(1) Subject to the provisions of this Act and any other law for the time
being in force, the Authority shall have the duty to regulate, promote
and ensure orderly growth of the insurance business and re-
insurance business.
(2) Without prejudice to the generality of the provision contained in
sub-section (1), the powers and functions of the Authority shall
include,
(a) Issue to the applicant a certificate of registration, renew,
modify, withdraw, suspend or cancel such registration;

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(b) protection of the interests of the policy holders in matters
concerning assigning of policy, nomination by policy holders,
insurable interest, settlement of insurance claim, surrender
value of policy and other terms and conditions of contracts of
insurance;
(c) specifying requisite qualifications, code of conduct and
practical training for intermediary or insurance intermediaries
and agents;
(d) Specifying the code of conduct for surveyors and loss
assessors;
(e) Promoting efficiency in the conduct of insurance business;
(f) Promoting and regulating professional organizations
connected with the insurance and re-insurance business;
(g) Levying fees and other charges for carrying out the purpose
of this Act;
(h) calling for information from, undertaking inspection of,
conduction enquiries and investigations including audit of the
insurers, intermediaries, insurance intermediaries and other
organizations connected with the insurance business;
(i) control and regulation of the rates, advantages, terms and
condition that may be offered by insurers in respect of general
insurance business not so controlled and regulated by the Tariff
Advisory Committee under section 64U of the Insurance Act,
1938 (4 of 1938);
(j) Specifying the from and manner in which books of account
shall be maintained and statement of accounts shall be
rendered by insurers and other insurance intermediaries;

26
 (k) regulating investment of funds by insurance companies;
(l) regulating maintenance of margin of solvency;
(m)adjudication of disputes between insurers and
intermediaries or insurance intermediaries;
(n) Supervising the functioning of the Tariff Advisory
Committee;
(o) Specifying the percentage of premium income of the insurer
to finance schemes for promoting and regulating professional
organization referred to in clause (f);
(p) Specifying the percentage of life insurance business and
general insurance business to be undertaken by the insurer in
the rural or social sector; and
(q) Exercising such other powers as may be prescribed.

Customer Service: Not unexpectedly, this was one area that

witnessed the most significant change with the entry of new players.
There is an attempt to bring in international best practices in service
and operational efficiency though use of latest technologies. Advice
and need based selling is emerging though much better trained sales
force and advisors. There is improvement in response and turnaround
times in specific areas such as delivery of first policy receipt, policy
receipt, policy document, premium notice, final maturity payment,
settlement of claims etc. However, there is a long way to go and
various customers survey indicate that the standards are still below
customer expectation levels.

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TYPES OF POLICIES IN THE MARKET

Endowment insurance policy

This plan is appropriate for people of all ages and social groups who
wish to protect their families from a financial setback that may occur
owing to their demise. It covers risk for a specified period, at the end
of which the assured sum is paid back to the policyholder, along with
the bonus accumulated during the term of the policy.
Many investors use endowment policy to fund anticipated financial
needs, such as college education for their children or retirement.
Premium for an endowment life policy is much higher than that of a
whole life policy. In
an endowment policy, a 20-year term for a 30-year-old cost around
Rs. 50,000 a year, whereas in a whole life plan it costs around Rs
40,000.

Money back scheme

Unlike other policies, this policy gives you a return after a
certain period of time. it provides periodic payments of partial survival
benefits during the term of the policy. The rest of the amount is paid
at the end the term with a bonus. The risk cover on the life continues
for the full sum assured even after payment of survival benefits and
the bonus is also calculated on the full sum assured. This is suitable
to the Indian psyche of the life insurance policyholder who wants
returns at frequent intervals.

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Pension plans
This is suitable for those who want a regular income after their
retirement. In this scheme policyholders contribute regularly over a
period of time or in a lump sum amount to form a corpus. This corpus
is used to yield a regular income that is paid to policyholders until
death starting from his desired retirement age. This is also known as
annuity schemes. Typically, annuities are bought to provide a solution
to one of the biggest financial in-securities of old age.

Unit linked insurance plans (Ulips)

Unit linked insurance plans (Ulip) are the flavor are now
contributing over 50 per cent of the private life insurance companies
since their since their inception in 2004. In an area of booming stock
market, these schemes are giving investors a higher return as life
protection.
Encouraged by the response, many players are launching different
savings and endowment plans in the unit-linked format. According to
the IRDA, a company offering unit linked plans must give the investor
an option to chose amount debt, balanced and equity funds. This
policy is suitable for young people who can take risk. These give
flexibility as mutual funds.

The Importance of Life Insurance

Losing someone close is one of the toughest things we will all have to
deal with. If that person has not properly planned ahead to cover the
expenses they have left behind then they leave a tremendous burden

29
on their loved ones. The grieving process is difficult enough but when
complicated with financial issues can leave bitter feelings. The last
thing someone wants to be remembered for is not properly planning
ahead.

Term life insurance is a cost effective way to protect the ones you
care about from having to clean up a financial mess after you have
passed on. Several unexpected costs arise after death such as
funeral expenses and burial costs, medical expenses, and other costs
that normally rise into the tens of thousands of dollars. In addition to
these final expenses there are the normal costs of living to pay for.
The regular monthly bills such as mortgage payments, insurance,
loans, and other expenses must still be paid even though you’re
gone. All of these expenses can quickly deplete your savings or
retirement money and force loved ones to sell things investments
below value. We need liquid assets that can be available quickly after
our death. Even high net worth individuals need life insurance
because houses, property, and other investments can’t be sold fast
enough to provide the required assets. If our loved ones are forced to
quickly sell investments such as houses, property, stocks, or mutual
funds, they possibly will take a loss just to get the money.

Stay at home parents and non-working spouses are often over looked
when it comes to life insurance. The loss of a stay at home spouse
means that the working spouse will often have to quit their job or pay
for someone to take care of kids and tend to the things at the house.

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5 Reason For Buying Insurance Products
Most of us buy a Life Insurance Policy to save tax. It is bought by
almost everyone right from the bigwigs of the business world to small
retail investors. And most buy it for one core reason- to save tax. But
should this be the only reason to buy a life insurance policy? I don’t
think so. Here I am presenting some guiding principles for individuals
who are contemplating taking life insurance.

1. Passing away early: ever safe about life. We often come across
people claiming that nothing is going to happen to them that they are
too young to pass away. But do they really know the future holds for
them? We only have to read newspaper headlines about the recent
Tsunami the earthquake that took place not so long and such other
natural calamities to understand how the future can be unpredictable.
Individuals need to insure themselves to secure the future of those
who are dependent on them especially so if they happen to be the
sole breadwinners. You wouldn’t want them to go through hardships
or rely on others/relatives etc. This in fact is the prime reason why
one should buy an insurance policy.

2. Living too long: Advances in the field of medicine have grown by

leaps & bonds over the past few decades. Due to this life
expectancies have gone up. This poses another problem for
individuals. It is generally observed that individuals who tend to live
way beyond their earning years like say till the age of 85 or 90 usually
face a problem coming to terms with increasing costs of living. And

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that is not taken into account the manifold increase in medical
expenses of course. This takes place largely due to imprudent
financial planning by individuals during their earning years. Insurance
if bought at the right time for the right amount acts as a saviour in
such times. Individuals could opt for a pension plan offered by
insurance companies which suits their profile in terms of income
proposed retirement age and proposed expenses post-retirement.
Such plans provide an annuity which means that individuals keep
getting a fixed sum every month/year after they have retired.

3. Painful existence: May be an individual has planned well during

his earning years to secure himself financially. He has also designed
his financial portfolio in such a way that he is drawing a comfortable
monthly income to support his family expenditure. But what if an
individual were to have a health problem affecting him or his spouse?
What if the remedy to this ailment were to cost him a sum beyond his
financial capacity? Here again life insurance can act as the saving
grace in two ways. One by way of a medical rider like the accidental
death benefit rider, permanent disability benefit rider, critical illness
benefit rider. These riders are taken along with the life insurance plan
and help cover the medical expenses.
And secondly by allowing the individual to surrender the insurance
policy. Of course this should be done only in case of an urgent need
like a serious health problem and even then after all other sources
that can be used for covering the high cost of medical expenses.

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4. Tax Benefits: Traditionally life insurance has always been bought
more for tax benefits than for what it is actually purposed to do. i.e.
insure human life. But the role of life insurance is an individual’s tax
planning cannot in any way be undermined. Individuals can invest in
life insurance and can avail a deduction from taxable income. The tax
sops provided on insurance help ‘increase’ the individual’s disposable
income and make him consider taking a life insurance plan which he
otherwise may not have done.

5. Investment: Today life insurance has become an investment tool.

After the introduction of the Unit Link Insurance Plan (ULIPs) life
insurance have become something of a rage which their ‘promise’ of
market linked returns combined with the duel benefit of insuring life
from eventualities.
ULIPs attempt to fulfill investment needs of an investor with
protection/insurance needs of an insurance seeker. ULIPs work on
the premise that is class of investors who regularly invest their saving
in products like fixed deposits (FDS), coupon-beanng bond, debt
funds, diversified equity fund and stocks. There is another class of
individuals who take insurance to provide for their family in case of an
eventually. So typically both these categories of individuals have a
portfolio of investments as well as life insurance. ULIP as a product
combines both these products (investment and life insurance) into a
single product. This saves the investor/insurance-seeker the hassles
of managing and tracking a portfolio of products.
We cannot change yesterday: that is clear. Nor can we begin
tomorrow until it is here. But what we can and should do is to make

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today count to ensure ourselves of a financially secure and stable
tomorrow.

Top 10 Tips For Purchasing Life Insurance

1. We must not wait till we REALLY NEED the coverage! By that time
we’ll be that much older, we’ll be sick or we will have encountered a
health issue that will cause our premiums to be significantly more
than we anticipated. That is of course if we can even qualify for the
coverage.

2. The highest financial rating doesn’t necessarily mean better

coverage. The important thing is to at least be looking at an “A” rated
company. There is little, if any difference between one companies
term policy and another, so basing a decision solely on ratings won’t

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always us to get our best deal. The highest rated companies tend to
be more conservative in their underwriting and attaining the “best
available” with them will be a bit more difficult.

3. First we must shop online before meeting individually with an

agent! Many online life insurance brokerage companies can be a
useful source of information and can save our up to 75% on your
premiums. The reason is of course because they are impartial and
are not driven to sell us only one company’s product.

4. We should pay annually if we can afford it. Paying annually can

save our, up to 20% with some companies versus monthly, quarterly
or semi-annually.

5. If we are trying to save money than being a smoker won’t help our
cause. However, if we do smoke, most companies will let us re-apply
for nonsmoker rates if it has been at least 1 full year from our last
usage.

6. If we have cholesterol or blood pressure issues get it controlled

with medication. Insurance companies don’t like to see health issues
go unattended. If we are doing something to control it they will likely
look at that favorably and give us the benefit of the doubt when it
comes to approval time.

7. If we are considering buying $90,000 of coverage, buy $100,000

instead. Many times it will cost less, the same or just a tad more for

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additional coverage. Insurance companies give breakpoints at
$100,000, $250,000, $500,000, $750,000 and $1,000,000.

8. We must read the “Prepare for the Medical Exam” section before
completing our exam. Eating a few Twinkies or calling your
stockbroker a half hour before your exam will surely turn your lab
results sour and cost you big time!

9. Obtaining coverage through the company’s plan may be a good

alternative…in the short-run. Many employer’s plans however are not
portable and won’t let you continue our coverage if we leave. If you
need coverage then, we’ll have to apply for an individual policy
anyway. We must not leave it to our employer to take care of us!

10. If we’re 30 ½ years old, we’re as old as 31 in the eyes of the

insurance company. Most insurance companies round up when
determining your age and because premiums increase with age that
can make a big difference. So, if we’re approaching 30 ½ and we
have thoughts of applying then we must not wait.

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Conclusion

The research concludes that: in a company like Reliance Life

Insurance which is entered just 2 years ago has performed so well
that today it holds 5th position in Indian insurance market in
2007.soon it will be on 3rd position.

And after studying on “quality of work life of employees of Reliance

Life Insurance” I have come to the conclusion that:-

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• Most of the employees are satisfied with the policies of
company. There job content, they had harmonious relationship
between their colleagues.

• The employees are fully satisfied with their salary /pay

scale because insurance is the only sector where a person can earn
as much money as possible if he/she is ambitious enough to fulfill
their target. Agents although they doesn’t get fixed salary but still
most of agents are satisfied with their incentive and other benefits
because most of the time their incentive go higher than their salary
of sales managers.

• There is proper facilities for grievance handling when

ever needed. But the process is really slow.

• But employees feel themselves stressed most of the

times because of their high targets. Which force them to work for
long hours and they can’t give enough time to their family.

• Although company sometimes help them to cope with

stress still company is hardly interested in employees personal
problem al they want is “Business”

Suggestions and Recommendations

ACCORDING TO RESEARCH I HAVE SUGGESTED SOME

POINTS WHICH ARE AS FOLLOWS.

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Company should provide some amount of money in the form of
recreational fund per month. It will help them to cope with stress.
Company should launch some promotional schemes time to time, to
motivate their employees. (like:- on completing targets they should
be give family tour packages.)this will work motivational tool for the
employees and thus increase their productivity.They must set fixed
amount of salary for agents also. It will increase the sense of
belongingness with the organization.Team work should be motivated
to maintain harmonious relations with their colleagues. Company
should provide holidays on Saturday and Sunday both i.e. there
should be weekends. It will help the employees to spend some time
with there family also.Company must provide sufficient number of
systems so that operation department can perform their job properly.

"It is possible to pursue a dual agenda in the workplace - one

that considers both the employer's and the employee's needs -
which not only eases employees' lives but also leads to
enhanced productivity and other tangible business benefits."

• Insistence on treating work and family as separate and

unrelated impairs work efficiency and family life. It leads to
unproductive work practices and undermines business goals
and personal goals.
• The process of challenging old assumptions and work habits
stimulates tremendous creativity among employees and
represents a strategic opportunity to create a more productive,
innovative and equitable workplace.

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 • Restructuring the way work gets done by seeking explicitly to
improve both worklife and personal life leads to positive, "win-
win" results. An environment and work practices that takes
employees' needs into account yields significant bottom-line
results.
• The most important conclusion is that success cannot be
achieved by tacking Work/Life programs and policies onto an
organizational culture that denies the value of employees'
personal and family lives. Success - for business and the
employee - hinges on recognizing the interconnection between
work and personal life and seeking aggressively to improve
both spheres.
• Company should recognize that there is no invisible wall
between work life and home life. The employers see work and
life as integrated and reciprocal. Success depends on
strategies that enable employees to succeed in both
dimensions.

BIBLIOGRAPHY

A. Magazines & Newspapers

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 1 Money Simplified.
2 Economic Times.
3 India Today
4 Business Today
5 Offer Documents of Different Schemes.

B. Brochures of the Company.

C. Website:
www.irda.co.in.
www.google.com
www.reliancelifeinsurance.com

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