ankur saxena
TRANSCRIPT
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APROJECT REPORT
ON SUMMER TRAINING AT
RELIANCE LIFE INSURANCE
COMPANY LTDOn topic
Creating an insurance awareness andgenerating revenue for the company
Master of Business Administration(MBA)
FinanceBy
Ankur Saxena
SIKKIM MANIPAL UNIVERSITY
Roll No. 521158448
Supervising FacultyMs. IFFAT AIJAZ SIDDIQUI
http://www.smude.edu.in/Pages/Welcome.aspx -
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Faculty of Management StudiesSikkim Manipal University
Rampur
DECLARATION
I declare that the project entitled A STUDY ON A INSURANCE
COMPANY (Conducted on behalf of RELIANCE LIFE INSURANCECOMPANY LTD, RAMPUR ) under the guidance of Miss Iffat Aijaz
Siddiqui submitted in partial fulfillment of the requirement for the
award of the degree of Master of Business Administration to
SIKKIM MANIPAL UNIVERSITY is my original work carried out
during 15 April 2012 to 15 June 2012, and not submitted for the
award of any other degree, diploma, fellowship or other similar or
prize to any other institute, organization or university by any otherperson.
Place
Ankur Saxena
Date:Roll No. 521158448
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CERTIFICATE OF THE FACULTY GUIDE
This is to certify that the project entitled
Submitted in partial fulfillment of
the requirement of SIKKIM MANIPAL UNIVERSITY in record of bonofidegeneral study work carried out by
under my supervision.
The project or any part of it has not been previously submitted for any
degree.
Date:Place:
Rampur
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1 What is Insurance
Introduction
Brief history of the insurance
sector
Some of the milestones in life
insurance
Insurance sector reforms
IRDA
Existing Insurance companies
2 Introduction of Reliance Life
Insurance
Company profile
Mission
Vision & values
Build up of business
Awards
Problem Identification
3 Generating revenue for the
company
Promotion
Sales strategy
Market share
4 Service
Customer satisfaction
Insurance solutions for individuals
Stages in policy issuance
5 Human resource
Definition of agent
Procedure for becoming an agentMethods of remuneratin a ents
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Acknowledgement
In preparation of this report by me, I feel great pleasure because
it gives me extensive practical knowledge in my career. I get idea
about Indian Life Insurance Industry by this project.
I express my deep sense of gratitude to My Company Guide
Mr.Arun Kumar (BM) and Mr. Shahnawaz Khan (SSM) for his
valuable guidance during my project work. I also like to all staff of
Reliance Life Insurance who guide me in project work directly or
indirectly to complete my training project.
I am thankful to Miss Iffat Aijaz Siddiqui (Faculty Guide) for
valuable inspiration and guidance provided me throughout the course
of this project. They have patient and critically gone the subject
matter.
I would like to take opportunity to express my gratitude towards
all of them who have contributed directly or indirectly in my project
work.
At last I would like to extend my deep sense of gratitude to myfriends, colleagues and each individual who directly or indirectly helpme during the project work.
Ankur Saxena
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INTRODUCTION
Life insurance is a form of insurance that pays monetary
proceeds upon the death of the insured covered in the policy.
Essentially, a life insurance policy is a contract between the named
insured and the insurance company wherein the insurance company
agrees to pay an agreed upon sum of money to the insured's named
beneficiary so long as the insured's premiums are current.
With a large population and the untapped market area of
this population insurance happens to be a very big opportunity in
India. Today it stands as a business growing at the rate of 15-20%
annually. Together with banking services, it adds about 7 percent to
the countrys GDP. In spite of all this growth statistics of the
penetration of the insurance in the country is very poor. Nearly 80% of
Indian populations are without life insurance cover and the health
insurance. This is an indicator that growth potential for the insurance
sector is immense in India.
It was due to this immense growth that the regulations
were introduced in the insurance sector and in continuation Malhotra
Committee was constituted by the government in 1993 to examine
the various aspects of the industry. The key element of the reform
process was participation of overseas insurance companies with 26%
capital. Creating a more competitive financial system suitable for the
requirements of the economy was the main idea behind this reform.
Since then the insurance industry has gone through
many changes. The liberalization of the industry the insurance industry
has never looked back and today stand as one of the most competitive
and exploring industry in India. The entry of the private players and
the increased use of the new distribution are in the limelight today.
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The use of new distribution techniques and the IT tools has increased
the scope of the industry in the longer run.
Insurance is the business of providing protection against
financial aspects of risk, such as those to property, life health and legal
liability. It is one method of a greater concept known as risk
management which is the need to mange uncertainty on account of
exposure to loss, injury, disadvantage or destruction.
The business of insurance is related to the protection of
the economic values of assets. Every asset has a value. The asset
would have been created through the efforts of the owner. The asset is
valuable to the owner, because he expects to get some benefit from it.The benefit may be an income or in some other form.
In India, insurance began in 1818 with life insurance
being transacted by an English company. The first insurance company
was the Bombay mutual assurance society ltd, formed in 1870 in
Mumbai. Insurance helps to reduce the consequences of adverse
situation. Insurance is the method of spreading and transfer of risk.
The fortunate many who are exposed to some or similar risk sharesloss of the unfortunate. Insurance does not protect the assets but only
compensates the economic or financial loss.
In insurance the insured makes payment called
premiums to an insurer, and in return is able to claim a payment
from the insurer if the insured suffers a defined type of loss. This
relationship is usually drawn up in a formal legal contract.
Insurance companies also earn investment profits,because they have the use of the premium money from the time they
receive it until the time they need it to pay claims. This money is
called the float. When the investments of float are successful they may
earn large profits, even if the insurance company pays out in claims
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every penny received as premiums. In fact, most insurance companies
pay out more money than they receive in premiums. The excess
amount that they pay to policyholders is the cost of float. An insurance
company will profit if they invest the money at a greater return than
their cost of float.
An insurance contract or policy will set out in detail the
exact circumstances under which a benefit payment will be made and
the amount of the premiums.
Marine insurance is the oldest type of insurance and one
of the earliest records of a marine policy relates to a Mediterranean
voyage in 1347. This was followed by life insurance some 300 yearslater. Fire insurance, however, did not begin until after the Great fire
of London in 1666. In India all the three insurance developed as
under:
Fire Insurance
Marin insurance
Life Insurance
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Classification of insurance:
The insurance industry in India can broadly classify in two parts.
They are.
1) Life insurance.
2) Non-life (general) insurance.
1) Life insurance:-
Life insurance can be defined as life insurance provides a sum
of money if the person who is insured dies while the policy is in effect.
In 1818 British introduced to India, with the establishment of
the oriental life insurance company in Calcutta. The first Indian owned
Life Insurance Company; the Bombay mutual life assurance society
was set up in 1870. The life insurance act, 1912 was the first statuary
measure to regulate the life insurance business in India. In 1983, the
earlier legislation was consolidated and amended by the insurance act,
1938, with comprehensive provisions for detailed effective control over
insurance. The union government had opened the insurance sector for
private participation in 1999, also allowing the private
Companies to have foreign equity up to 26%. Following the
opening up of the insurance sector, 12 private sector companies have
entered the life insurance business .
Benefits of life insurance:
Life insurance encourages saving and forces thrift.
It is superior to a traditional savings vehicle.
It helps to achieve the purpose of life assured.
It can be enchased and facilitates quick borrowing.
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It provides valuable tax relief.
Thus insurance is found to be very useful in the lives of the
person both in short term and long term.Fundamental principles of life insurance contract:-
1) Principle of almost good faith:
A positive duty to voluntary disclose, accurately and fully, all
facts, material to the risk being proposed whether requested or not.
2) Principle of insurable interest:
Relationships with the subject matter (a person) which is
recognized in law and gives legal right to insure that person.
2) Non-life (general) Insurance:-Triton insurance co. ltd was the first general
insurance company to be established in India in 1850, whose shares
were mainly held by the British. The first general insurance company
to be set up by an Indian was Indian mercantile insurance co. Ltd.,
which was stabilized in 1907. There emerged many a player on the
Indian scene thereafter.
The general insurance business was nationalized after the
promulgation of General Insurance Corporation (GIC) OF India
undertook the post-nationalization general insurance business.
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Brief History of the Insurance Sector in India
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.
The story of insurance is probably as old as the story of
mankind. The same instinct that prompts modern businessmen today
to secure themselves against loss and disaster existed in primitive
men also. They too sought to avert the evil consequences of fire and
flood and loss of life and were willing to make some sort of sacrifice in
order to achieve security. Though the concept of insurance is largely a
development of the recent past, particularly after the industrial era
past few centuries yet its beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in
the year 1818. Oriental Life Insurance Company started by Europeans
in Calcutta was the first life insurance company on Indian Soil. All the
insurance companies established during that period were brought up
with the purpose of looking after the needs of European community
and these companies were not insuring Indian natives. However, later
with the efforts of eminent people like Babu Muttylal Seal, the foreign
life insurance companies started insuring Indian lives. But Indian lives
were being treated as sub-standard lives and heavy extra premiums
were being charged on them. Bombay Mutual Life Assurance Society
heralded the birth of first Indian life insurance company in the year
1870, and covered Indian lives at normal rates. Starting as Indian
enterprise with highly patriotic motives, insurance companies came
into existence to carry the message of insurance and social security
through insurance to various sectors of society. Bharat Insurance
Company (1896) was also one of such companies inspired by
nationalism. The Swadeshi movement of 1905-1907 gave rise to more
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insurance companies. The United India in Madras, National Indian and
National Insurance in Calcutta and the Co-operative Assurance at
Lahore were established in 1906. In 1907, Hindustan Co-operative
Insurance Company took its birth in one of the rooms of the
Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta.
The Indian Mercantile, General Assurance and Swadeshi Life (later
Bombay Life) were some of the companies established during the
same period. Prior to 1912 India had no legislation to regulate
insurance business. In the year 1912, the Life Insurance Companies
Act, and the Provident Fund Act were passed. The Life Insurance
Companies Act 1912 made it necessary that the premium rate tables
and periodical valuations of companies should be certified by an
actuary. But the Act discriminated between foreign and Indian
companies on many accounts, putting the Indian companies at a
disadvantage.
The first two decades of the twentieth century saw lot of
growth in insurance business. From 44 companies with total business-
in-force as Rs.22.44 Crore, it rose to 176 companies with totalbusiness-in-force as Rs.298 Crore in 1938. During the mushrooming of
insurance companies many financially unsound concerns were also
floated which failed miserably. The Insurance Act 1938 was the first
legislation governing not only life insurance but also non-life insurance
to provide strict state control over insurance business. The demand for
nationalization of life insurance industry was made repeatedly in the
past but it gathered momentum in 1944 when a bill to amend the LifeInsurance Act 1938 was introduced in the Legislative Assembly.
However, it was much later on the 19th of January 1956 that life
insurance in India was nationalized. About 154 Indian insurance
companies, 16 non-Indian companies and 75 provident were operating
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in India at the time of nationalization. Nationalization was
accomplished in two stages; initially the management of the
companies was taken over by means of an Ordinance, and later, the
ownership too by means of a comprehensive bill. The Parliament of
India passed the Life Insurance Corporation Act on the 19th of June
1956, and the Life Insurance Corporation of India was created on 1st
September, 1956, with the objective of spreading life insurance much
more widely and in particular to the rural areas with a view to reach all
insurable persons in the country, providing them adequate financial
cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch
offices, apart from its corporate office in the year 1956. Since life
insurance contracts are long-term contracts and during the currency of
the policy it requires a variety of services need was felt in the later
years to expand the operations and place a branch office at each
district headquarter. Re-organization of LIC took place and large
numbers of new branch offices were opened. As a result of re-
organization servicing functions were transferred to the branches, andbranches were made accounting units. It worked wonders with the
performance of the corporation. It may be seen that from about
200.00 Crore of New Business in 1957 the corporation crossed
1000.00 Crore only in the year 1969-70, and it took another 10 years
for LIC to cross 2000.00 Crore mark of new business. But with re-
organization happening in the early eighties, by 1985-86 LIC had
already crossed 7000.00 Crore Sum Assured on new policies.Today LIC functions with 2048 fully computerized branch
offices, 100 divisional offices, 7 zonal offices and the corporate office.
LICs Wide Area Network covers 100 divisional offices and connects all
the branches through a Metro Area Network. LIC has tied up with
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some Banks and Service providers to offer on-line premium collection
facility in selected cities. LICs ECS and ATM premium payment facility
is an addition to customer convenience. Apart from on-line Kiosks and
IVRS, Info Centers have been commissioned at Mumbai, Ahmadabad,
Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many
other cities. With a vision of providing easy access to its policyholders,
LIC has launched its SATELLITE SAMPARK offices. The satellite offices
are smaller, leaner and closer to the customer. The digitalized records
of the satellite offices will facilitate anywhere servicing and many other
conveniences in the future.
From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life
insurance business. The same motives which inspired our forefathers
to bring insurance into existence in this country inspire us at LIC to
take this message of protection to light the lamps of security in as
many homes as possible and to help the people in providing security to
their families.
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Some of the important milestones in the
life insurance business in India are
1850 Non life insurance debuts with triton insurance company.
1870 Bombay mutual life assurance society is the first Indian owned
life insurer
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.
1956 245 Indian and foreign insurers and provident societies
taken over by the central government and nationalized. LIC formedby an Act of Parliament, viz. LIC Act, 1956, with a capital contribution
of Rs. 5 Crore from the Government of India.
The General insurance business in India, on the other
hand, can trace its roots to the Triton Insurance Company Ltd., the
first general insurance company established in the year 1850 in
Calcutta by the British. Some of the important milestones in the
general insurance business in India are:
1907 The Indian Mercantile Insurance Ltd. set up, the first
company to transact all classes of general insurance business.
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1957 General Insurance Council, a wing of the Insurance
Association of India, frames a code of conduct for ensuring fair conduct
and sound business practices.
1968 The Insurance Act amended to regulate investments and
set minimum solvency margins and the Tariff Advisory Committee set
up.
1972 The General Insurance Business (Nationalization) Act,
1972 nationalized the general insurance business in India with effect
from 1st January 1973. 107 insurers amalgamated and grouped into
four companies viz. the National Insurance Company Ltd., the New
India Assurance Company Ltd., the Oriental Insurance Company Ltd.
and the United India Insurance Company Ltd. GIC incorporated as a
company.
Insurance sector reforms
In 1993, Malhotra Committee, headed by former Finance
Secretary and RBI Governor R. N. Malhotra, was formed to evaluate
the Indian insurance industry and recommend its future direction.
The Malhotra committee was set up with the objective
of complementing the reforms initiated in the financial sector. The
reforms were aimed at creating a more efficient and competitive
financial system suitable for the requirements of the economy keeping
in mind the structural changes currently underway and recognizing
that insurance is an important part of the overall financial system
where it was necessary to address the need for similar reforms In
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1994, the committee submitted the report and some of the key
recommendations included.
1997 Insurance regulator IRDA set up
2000 IRDA starts giving licenses to private insurers: AEGONReligare Life Insurance , ICICI prudential and HDFC Standard Life
insurance first private insurers to sell a policy
2001 Royal Sundaram Alliance first non life insurer to sell a
policy 2002 Banks allowed selling insurance plans.
The Insurance Regulatory and DevelopmentAuthority (IRDA)
The Insurance Act, 1938 had provided for setting up
of the Controller of Insurance to act as a strong and powerful
supervisory and regulatory authority for insurance. Post
nationalization, the role of Controller of Insurance diminished
considerably in significance since the Government owned the insurance
companies.
But the scenario changed with the private and
foreign companies foraying in to the insurance sector. This
necessitated the need for a strong, independent and autonomous
Insurance Regulatory Authority was felt. As the enacting of legislation
would have taken time, the then Government constituted through a
Government resolution an Interim Insurance Regulatory Authority
pending the enactment of a comprehensive legislation.
The Insurance Regulatory and Development
Authority Act, 1999 is an act to provide for the establishment of an
Authority to protect the interests of holders of insurance policies, to
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regulate, promote and ensure orderly growth of the insurance industry
and for matters connected therewith or incidental thereto and further
to amend the Insurance Act, 1938, the Life Insurance Corporation Act,
1956 and the General insurance Business (Nationalization) Act, 1972
to end the monopoly of the Life Insurance Corporation of India (for life
insurance business) and General Insurance Corporation and its
subsidiaries (for general insurance business).
The act extends to the whole of India and will
come into force on such date as the Central Government may, by
notification in the Official Gazette specify. Different dates may be
appointed for different provisions of this Act.
The Act has defined certain terms; some of the
most important ones are as follows:
Appointed day means the date on which the
Authority is established under the act. Authority means the established
under this Act.
Interim Insurance Regulatory Authority means the Insurance
Regulatory Authority set up by the Central Government throughResolution No. 17(2)/ 94-lns-V dated the 23rd January, 1996.
Words and expressions used and not defined
in this Act but defined in the Insurance Act, 1938 or the Life Insurance
Corporation Act, 1956 or the General Insurance Business
(Nationalization) Act, 1972 shall have the meanings respectively
assigned to them in those Acts
A new definition of "Indian Insurance Company"has been inserted. "Indian insurance company" means any insurer
being a company
(a) Which is formed and registered under the Companies Act, 1956
(b) in which the aggregate holdings of equity shares by a foreign
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company, either by itself or through its subsidiary companies or its
nominees, do not exceed twenty-six percent, Paid up capital in such
Indian insurance company
EXISTING INSURANCE COMPANIES
EXISTING INSURANCE COMPANIES
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INTRODUCTION ABOUT RELIANCE LIFE INSURANCE
Our Founder
Few men in history have made as dramatic a contribution to their
countrys economic fortunes as did the founder of Reliance, Shri.Dhirubhai H Ambani . Fewer still have left behind a legacy that ismore 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, theunmatched strategist, the proud patriot, the leader of men, thearchitect of Indias capital markets, the champion of shareholderinterest.
But the role Dhirubhai cherished most was perhaps that of Indiasgreatest wealth creator. In one lifetime, he built, starting from theproverbial scratch, Indias largest private sector enterprise.
When Dhirubhai embarked on his first business venture, he had a seedcapital of barely US$ 300 (around Rs 14,000). Over the next three anda half decades, he converted this fledgling enterprise into a Rs 60,000crore colossusan achievement which earned Reliance a place on theglobal Fortune 500 list, the first ever Indian private company to do so.
Dhirubhai is widely regarded as the father of Indias capital markets.In 1977, when Reliance Textile Industries Limited first went public, theIndian stock market was a place patronised by a small club of eliteinvestors 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 andput their hard-earned money in the Reliance Textile IPO, promisingthem, in exchange for their trust, substantial return on their
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investments. It was to be the start of one of great stories of mutualrespect and reciprocal gain in the Indian markets.
Under Dhirubhais extraordinary vision and leadership, Reliancescripted one of the greatest growth stories in corporate history
anywhere in the world, and went on to become Indias largest privatesector enterprise.
Through out this amazing journey, Dhirubhai always kept the interestsof the ordinary shareholder uppermost in mind, in the process makingmillionaires out of many of the initial investors in the Reliance stock,and creating one of the worlds largest shareholder families.
VISION and Mission
Vision
Empowering everyone live their dreams.
Mission
Create unmatched value for everyone through dependable, effective,transparent and profitable life insurance and pension plans.
Our Goal
Reliance Life Insurance would strive hard to achieve the 3 goalsmentioned below:
Emerge as transnational Life Insurer of global scale and standard
Create best value for Customers, Shareholders and all Stakeholders
Achieve impeccable reputation and credentials through bestbusiness practices
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s
Vision & values
Our Vision:-
Reliance Life Insurance has a deep rooted commitment to improve
the quality of life of its customers, employees and stakeholders. We
aim at improving the long term value in our relationship by continuous
innovation and improvements. We do this by our three-prong effort
which strives to Reliance Life Insurance a corporate with values.
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Increase Customer Value:Reliance Life Insurance has gone to the heart of its customer's
requirements and developed products which are unique and serve the
customer needs perfectly. We built a relationship of mutual trust andbenefit to serve the Indian customer. At Aegon Religare Life Insurance
the customer always comes first.
Cohesive Work Environment: -
We form long-term partnership with our employees by offering
them an invigorating work experience. We not only demand loyalty,
sincerity and values but also give it back in equal measures. Reliance
Life Insurance will like to offer its employees space to grow, innovate
and build a long-term career.
Work with Honor: -Reliance Life Insurance delivers everyday services in the
marketplace with the high sense of duty and commitment. Our
employees strive to build the long-term value for all those come in
contact with Reliance Life Insurance . Our consumers, distributors,
employees, shareholders and the nation have our commitment that we
will uphold the values of trust, integrity and a Sense of Honor in every
thought, act and deed in order to positively contribute to individual,
society and nation growth.
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Achievements
RLIC closed the last financial year with a New BusinessPremium of Rs 3513 Crores.
For 3 successive years, since inception, the Company has beenamongst the fastest growing Companies in the Life InsuranceIndustry achieving a growth rate of 28% in the last financialyear against a market growth of -6%. In the Individual Businesssegment, the company achieved a growth rate of 59% interms of WRP against the private industry growth of 1%.
Reliance Life has been one of the fastest gainers in market sharegrowing from 1.9% amongst private players in Mar'06 to 10.3%as of Mar'09. This has resulted in the Company growing tobecoming the 4th largest private player in just two yearsstarting at position of 11.
The Company has been the fastest company to reach the 3million policy mark and was the 3rd largest private insurer interms of Policy count in 2008-09
Reliance Life has accomplished a large distribution ramp-up inthe Industry in a short span of time by opening 1145branches in just over 2 year.
RLIC continues to be amongst the foremost Life Insurancecompanies in India to be certified ISO 9001:2000 for all theprocesses.
Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007-Certificate of Merit in the Financial Services category byCouncil for Fair Business Practices (CFBP).
The Company has also won the DL Shah Quality Council of India Commendation Award in the services category in feb2008 for its work on promoting 'self help channels forservice'
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Strategies for generating revenue for the
company
Advisory ServicesAdvisory services are the most interactive category and generallyfocus on longertermrelationships, ensuring that customer needs are satisfied withappropriateinsurance products or services. Such services are a critical componentof longtermvalue, since customer insurance needs change over time.
Information ServicesInformation services provide accurate and timely information inresponse tocustomer inquiries. Examples include requests for payment address orstatus,claims or contract status, and financial and rating information.The delivery of informational services primarily involves self-servicechannelssuch as telephony/VRU or the Web. Alternatively, some companiescontinue to
provide informational services directly or alternatively through callcenters.
Transactional ServicesTransactional services are specific requests that initiate or triggeractions orchanges, and tend to take the form of material changes to a policy,administrativechanges or fulfillment. Examples include a first notice of loss, the
addition of avehicle or coverage to an existing policy, coverage changes, addresschanges andrequests for ID cards and forms.Call centers are the traditional delivery channel for transactionalservices,although the trend in many insurance companies has been to drivetransactional
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services to lower-cost, self-service options.
Providing Good ServiceAs customer expectations continue to evolve, it is critical to move from
tactical tostrategic thinking regarding the definition of good service, and tounderstand thatdistinction from both insurer and customer perspectives. Technologycan improvethe service experience dramatically, but providing truly exceptionalservicerequires a more holistic view of service offerings.
Tactical Thinking on Good ServiceWhen service is viewed tactically rather than strategically, insurersstrive todeliver service at the lowest possible cost without negatively impactingthe customerrelationship. Service events provide customers with the desiredproduct or serviceinformation based on their specific request. If an insurer is able toimprove thecustomer relationship in the process of completing the service event, itis viewedas a nice bonus rather than a desired outcome. In sum, the tacticalthinking aboutservice from the insurers perspective is no harm, no foul, and issuccessful aslong as the relationship emerges no worse off than when the eventstarted.The customers view on good service from a tactical perspective ismuch the sameas insurers. The goal is that interaction with the insurer is easy, andthat thedesired outcome is achieved in as little time as possible and is
completed on thefirst call.Technology can improve the service process, but may not necessarilyresult in trulygood service, particularly as customer and insurer expectationscontinue to evolve.
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How Technology Can Impact a Life Insurance Typical
Note in this scenario the number of manual steps required to recordthe callinformation and log in and out of systems, and the time required toresearchinformation to resolve the call. In this scenario, the lack of informationat thefingertips of the representative requires an additional step to call thecustomer
and therefore fails to meet even the tactical goal of having the issueresolved onthe first call.
Strategic Thinking on Good ServiceThe final step in the evolution of the service model is that good servicebecomesa strategic component of the relationship between the insurer andcustomer. If done right, good service will deepen the long-term relationship to the
benefit of each party.Good service becomes strategic for an insurer when it evolves frombeingtransactional to generating revenue and profit. Each service event isintendedto increase customer loyalty and create or increase the cost to acustomer of
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switching carriers. Furthermore, the insurer not only provides specificanswersand services requested but also applies institutional knowledge andanalytics toanticipate other related client needs to cross-sell additional products
and services.Finally, insurers now have the ability to understand a customers long-term valueand profitability and can provide services accordingly. An insurer canbe certainthat it is not spending a disproportionate amount of service dollars onits leastvaluablecustomers.Customers also continue to evolve their thinking to be more strategicand lesssnow notonly expected to know the customers service history, but to be able toact onit, delivering service within the proper context. In addition, a serviceevent notonly answers the customers questions but becomes anticipatory, suchthat the
customer ends the call with completely new information or knowledge.
Strategy set up growth in hard times
In a thriving economy, many people don't often think about their long-
term investments and retirement planning.
But when economic times turn sour, they are more inclined to seek
financial advisers as they worry their nest egg won't sustain them in
an uncertain future.
While most financial planners bemoan this phenomenon, a downeconomy in Southeast Michigan is one reason why Southfield-based
Michigan Financial Cos. is flourishing.
The company is an insurance agency specializing in financial planning
and wealth management. It also has offices in Sterling Heights,
Dearborn, Birmingham and two in Ohio.
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Business plan was to grow by hiring experienced (insurance sales)
reps and add more services that would be appealing to them,'' Valenti
said. Since 2004, the company has grown from 29 to 49 reps with 55
total employees, he said.
Aside from hiring additional reps, key growth strategies included hiring
a financial planning coordinator, Bryan Mulvihill, to advise the
representatives; a vice president of marketing and operations, Kim
Stine, to promote the business; and a vice president of new business
development, Kevin Kneip, to coordinate growth strategies.
Financial planning at the company is a process that begins with an
analysis of an individual's investment portfolio and economic situation.
The analysis includes several meetings to evaluate the client's specific
financial goals and objectives, Kneip said.
Besides insurance, offers a variety of other services, including
employee benefit design, asset management, individual money
management and estate planning. About one-third of the company's
revenue comes from insurance and the remainder from asset
management services
But the growth strategy required a major capital infusion, and a
business affiliation name change.
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Marketing practice tends to be seen as a creative industry,
which includes advertising , distribution and selling . It is also concerned
with anticipating the customers' future needs and wants, which are
often discovered through market research. Seen from a systems point
of view, sales process engineering views marketing as a set of
processes that are interconnected and interdependent with other
functions, whose methods can be improved using a variety of relatively
new approaches
Marketing practice tends to be seen as a creative industry,
which includes advertising , distribution and selling . It is also concerned
with anticipating the customers' future needs and wants, which are
often discovered through market research. Seen from a systems point
of view, sales process engineering views marketing as a set of
processes that are interconnected and interdependent with other
functions, whose methods can be improved using a variety of relatively
new approaches
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PROMOTERS
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Category No.of Shares Held % of Share HoldingPromoter's Holding
Promoters
Indian Promoters 176444775 12.64
Petroleum Trust 104660154 7.50
Persons acting in Concert 475325061 34.04Sanchayita Mercantile Pvt Ltd 34259091 2.45
Reliance Enterprises Ltd 31523304 2.26
Florentine Trading Pvt Ltd 26115560 1.87
Velocity Trading Pvt Ltd 24606501 1.76Madhuban Merchandise Pvt Ltd 24350000 1.74
Ornate Traders Pvt Ltd 19567290 1.40
Amur Trading Pvt Ltd 16510300 1.18
Tresta Trading Pvt Ltd 16547904 1.19
Yangste Trading Pvt Ltd 16230869 1.16
Reliance Polyolefins Pvt Ltd 19090909 1.37
Reliance Aromatics & Petrochemicals Pvt Ltd 16029090 1.15
Reliance Energy & Project Development Pvt Ltd 16029090 1.15Reliance Chemicals Pvt Ltd 14568372 1.04
RELIANCE CAPITAL LTD. 16474028 1.18
Sub Total 651769836 46.68
Non Promoter's Holding Institutional Investors
Mutual Funds and UTI 82220341 5.89
Administrator of Specific Undertaking of UTI 55994112 4.01
Banks,Financial Institutions,Insurance Companies 85914618 6.15
Life Insurance Corporation of India 57021664 4.08
FIIS 227745432 16.31
Emerging Markets Growth Fund Inc 53810501 3.85
Janus Worldwide Fund 19263983 1.00
Sub Total 395880391 28.35
Others
Private Corporate Bodies 18132320 1.30
Indian Public 231251908 16.56
NRIs/OCBs 13491020 0.97
Any Other
GDR 85852061 6.15
Sub Total 348727309 24.97
Grand Total 1396377536 100.00
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Title Location Release Date
Reliance LifeInsurancelaunchesReliance LifeHighest NAVGuaranteeplan
Maharashtra
Feb,2010
The world istalking aboutus
Chandigarh
Jan,2010
Reliance LifeInsuranceeyes ruralmarket foray
Mumbai
Sep,2009
Govt mayhalve time bar for InsuranceIPOs
Mumbai
Sep,2009
Our focus isnow on lifeinsurance &IPO
Mumbai
Sep,2009
http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/press_releases.aspx#%23http://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/scan.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/page.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdfhttp://www.reliancelife.com/rlic/Media/PressReleases/Sam%20Ghosh.pdf -
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Your DTHvendor will sellInsurance, too
Mumbai
21stMar,2009
CombatingRisk inInsuranceBusiness
Mumbai
Mar,2009
Amar Ujala(Hindi)
Mumbai
Mar,2009
Dainik
Bhaskar(Hindi)
Bhopal
12thfeb,2009
DainikJagran(Hindi)
Bhopal
12thfeb,2009
RajExpress(Hindi)
Bhopal
12thfeb,2009
Patrika(Hindi)Bhopal
12thfeb,2009
Relianceinsurance toreach everyhome
Bhopal
12thfeb,2009
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SALES STRETAGY
Reliance Life Insurance has a great strategy for sales department. Company has a
three type of strategy for sales and that are as follow:
COMPANY STRETEGY:
Now company applies the project Turning Point and in this project
to decide the selection criteria for LIFE ADVISOR and life advisor is
the basic requirement for sale the policy. The selection criteria for
advisor are:
Like:-
Agent age > 30 for male LA, and >25 for female
Agent income 5 lakhs
Agent stay in city belong > 5 years
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Family back ground strong.
Minimum graduate
Either 2 years experience or post graduate refresher
EXTERNAL STRETEGY:
Reliance Life Insurance external strategy is To make
limited branches but, to perform productive so that
company to reduce the cost.
INTERNAL STRETEGY:
Reliance Life Insurance Company has internal strategy like,
Rewards & Recognisation:
SLAB NO OF POLICIES REWARDS
LEVEL 1
LEVEL 2 4
LEVEL 3 6
LEVEL 4 10
LEVEL 5 15
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LEVEL 6 20
Reliance Market Share:-
Reliance Life Insurance, a part of Reliance Capital of the Reliance AnilDhirubhai Ambani Group (ADAG), registered a record high market
share of 14.51 percent in March 2010 and a 10.5 percent growth forthe 2009-10 financial year.
The company sold the highest number of policies in fiscal 2010 amongthe private sector players and stood second in terms of sellingindividual premium WRP (weighted received premium).
'Retail focus, innovative products and strong distribution network werekey growth drivers during the year that helped us improve our marketshare and retain number one slot in terms of number of policies sold in
the private sector,' said Malay Ghosh, president of Reliance LifeInsurance.
He said the company this year would focus on smaller cities.
'We would continue to reach out to more customers, especially acrosstier-2 and tier-3 cities, in this fiscal,' Ghosh said.
The company achieved 9.8 percent growth last year.
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Grievance Redressal At Reliance Life Insurance, we believe in providing the best of servicesto our customers and channel partners. We provide easy access toinformation, products and services, as well as the means to get their
grievances redressed.Resolving your problem helps us review our processes and takenecessary steps to prevent recurrence. We aim to respond to yourcomplaint with efficiency, courtesy and fairness.
In case you are dissatisfied with any of our services, please feel free tocontact us -
Step1:
In the event the Policyholder/Complainant has anygrievance under this policy, a reference shall be made at
the following touch points of the Company-Step 1.1 24 hours contact centre: 30338181(Local call charges apply) & 1800 30008181(Toll free) Email:[email protected]
OR
Step 1.2 Contact the Customer ServiceExecutive at the nearest branch of theCompany
OR
Step 1.3 Write to Reliance Life CustomerServiceReliance Life InsuranceCompany LimitedH Bolck, 1st Floor, DhirubhaiAmbani Knowledge CityNavi Mumbai,Maharashtra 400710India
The Company will respond within ten business days fromthe date of receipt of the Policyholder/ComplainantsCommunication.
Step2:
In the event of not receiving a satisfactory responsewithin 10 business days, a further reference may bemade to our Grievance Redressal Officer [email protected] or write to theGrievance Redressal Officer at the address mentioned in
mailto:[email protected]?subject=GrievanceRedressalCShttp://www.reliancelife.com/Contactus/BranchLocator/BranchLocator.aspxmailto:[email protected]?subject=GrievanceRedressalCSmailto:[email protected]?subject=GrievanceRedressalCShttp://www.reliancelife.com/Contactus/BranchLocator/BranchLocator.aspxmailto:[email protected]?subject=GrievanceRedressalCS -
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Step 1.3.The Company will respond within five business daysfrom the date of receipt of thePolicyholder/Complainants Communication.
Step3:
In the event of not receiving a satisfactory responsewithin 5 business days, a further reference may bemade to our Chief Executive Officer at [email protected] or write to the Chief Executive Officer at the address mentioned in Step 1.3.The Company will respond within two business daysfrom the date of receipt of thePolicyholder/Complainants Communication.
Step4:
After having followed Steps 1, 2 & 3, if the issuesremain unresolved; a further reference may be made tothe Insurance Ombudsman in terms of Rule 12 & 13of the Redressal of Public Grievance Rules, 1998
Power of Ombudsman
Rule 121. The insurance Ombudsman may receive and consider
i. complaints under rule 13;ii. any partial or total repudiation of claims by the
insurance companies,iii. any dispute in regard to premium paid or payable
in terms of the policy,iv. any dispute on the legal construction of the
policies insofar as such disputes relates to claims;v. delay in settlement of claims and
vi. non-issue of any insurance document to
customers after receipt of premium.
2. The Ombudsman shall act as counselor and mediatorin matters which are within his terms of reference and;if requested to do so in writing by mutual agreement bythe insured person and insurance company.
mailto:[email protected]?subject=GrievanceRedressalCSmailto:[email protected]?subject=GrievanceRedressalCSmailto:[email protected]?subject=GrievanceRedressalCSmailto:[email protected]?subject=GrievanceRedressalCS -
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3. The Ombudsmans decision whether the complaint isfit and proper for being for being considered by it or not,shall be final.
Manner in which complaint is to be madeRule 131. Any person who has a grievance against an insurer,may himself or through his legal heirs make a complaintin writing to the insurance Ombudsman within whose
jurisdiction the branch or office of the insurercomplained against is located.
2. The complaint shall be in writing duly signed by thecomplainant or through his legal heirs and shall stateclearly the name and address of the complainant, thename of the branch or office of the insurer against whichthe complaint is made, the fact giving rise to complaintsupported by documents, if any, relied on by thecomplainant, the nature and extent of the loss caused tothe complainant and the relief sought from theOmbudsman.
3. No complaint to the ombudsman shall lie unless i) the complainant had before makinga complaint to the Ombudsman made
a written representation to the insurernamed in the complaint and eitherinsurer had rejected the complaint orthe complainant have not received anyreply within a period of one monthafter the concerned insurer hasreceived his representation or thecomplainant is not satisfied with thereply given to him by the insurer.ii) The complaint is made not later
than one year after the insurer hadrejected the representation or sent hisfinal reply on the representation of thecomplainant; andiii) The complaint is not on the samesubject matter, for which anyproceedings before any court orconsumer forum, or arbitrator is
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pending or were so earlier.
For any queries / issues kindly contact the customer support on 022-30338181 / 1800 300 08181 or write [email protected]
Customer Login
Customer Satisfaction
What is customer satisfaction?
Customer satisfaction refers to how satisfied customers are with the
products or services they receive from a particular agency. The level of
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satisfaction is determined not only by the quality and type of customer
experience but also by the customers expectations.
A customer may be defined as someone who:
has a direct relationship with, or is directly affected by your
agency and
Receives or relies on one or more of your agencys services or
products.
Customers in human services are commonly referred to as service
users, consumers or clients. They can be individuals or groups.
An organization with a strong customer service culture places the
customer at the centre of service design, planning and service
delivery. Customer centric organizations will:
determine the customers expectations when they plan
listen to the customer as they design
focus on the delivery of customer service activities
Value customer feedback when they measure performance.
Why is it important?
There are a number of reasons why customer satisfaction is important
in Insurance Sector:
Meeting the needs of the customer is the underlying rationale for
the existence of community service organizations. Customers have a
right to quality services that deliver outcomes.
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Organizations that strive beyond minimum standards and exceed
the expectations of their customers are likely to be leaders in their
sector.
Customers are recognized as key partners in shaping service
development and assessing quality of service delivery.
The process for measuring customer satisfaction and obtaining
feedback on organizational performance are valuable tools for quality
and continuous service improvement.
Insurance Solutions for Individuals:
Reliance Life Insurance offers a range of innovative, customer-centric
products that meet the needs of customers at every life stage. Itsproducts can be enhanced with up to 4 riders, to create a customized
solution for each policyholder.
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Protection
Helping you to grow and
protect your wealth.
Savings &
Investments
Manage today for a
better tomorrow.
Retirement
The road to retirement,
Make it easy
Child
Plan a good future for
your child.
Protection Plans:
In todays uncertain world, there could be calamity at every step of the
life. It is up to you to ensure that your family stays protected always.
Reliance Protection Plans helps you do exactly the same. You have awide range of options to choose a plan from. Right from limited periodplans to lifetime protection plans, you can opt for the one that suitsyour lifestyle.
While we understand that nothing can compensate for the loss of alife, we intend to provide you the peace of mind. Investing in RelianceProtection Plans would mean your familys future is in safe hands.
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Child Plans:
Being a parent is one of the joys of life. Your child looks up to you anddepends on you for love, protection and support. You want to provideyour child with the best in life.
The Reliance Child Plan helps you save systematically so that you cansecure your childs future needs. Be it higher education, his or her firsthome or any other requirement, you will always be there for your childwhen he or she needs you.
So, invest in a Reliance Child Plan right awayit is the best gift youcould ever give your child.
Savings Plans:
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In life, you have always given your family whatever they have wanted.
Yet, there are some promises you have to fulfil, such as taking yourfamily for a vacation, or buying that dream house.
Set aside some money to achieve these specific goals with the help of Reliance Savings & Investment Plans. The plan allows you toexperience the joys of life and provide for your familys needs.
Enjoy life without worrying about the promises you have madeweare here to fulfil them.
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Retirement Plans:
You are a young and earning individual. The income you earn allowsyou to enjoy life, your only worry being whether you will be able tocontinue the same lifestyle after retirement.
A Reliance Retirement Plan will help you save money for yourretirement. It ensures that you continue to get some income afterretirement thereby ensuring that you do not have to depend on anyother person or make any compromises to maintain the same lifestyle.
Invest in a Reliance Retirement Plan today and enjoy life afterretirement on your own terms.
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Stages in Policy Issuance
1) Proposal
A Proposal Stage is the First stage before the policy is issued at COPS.
At this stage, the application form is received by COPS, but it is
pending for issuance due to further clarifications required from the
customer.
2) Login
A proposal which is complete i.e., duly filled with all necessary
documents attached to it & accepted by the Branch ops, is called a
Login
3) Reject
An Application gets rejected at the Branch Ops level due to necessary
details not filled in the form or necessary documents not submitted is
a Reject. It is then sent back to the Advisor for completion.
4) Issuance
Issuance means a policy that is issued to the Customer by Central
Ops.
5) Decline Status
When a customer refuses to take a policy post login but before
Issuance is called a Decline
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6) Cancellation
When the cheque given by the customer bounces, it amounts to
cancellation of the policy .
7) Lapse
A policy for which the Customer fails to pay subsequent premiums is a
Lapsed Policy.
8) Free look
Post issuance of the policy, the policyholder has the option to turn
down the policy within 15 days from the date of issuance. This period
of 15 days is called Free look Period.
9) Surrender
When a customer wants to discontinue with the policy.
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DEFINITION OF AN AGENT
According to section 182 of the Indian contracts act, an agent is
a person employed to do any act for another or to represent another indealing with a third person. In the insurance industry, the term
agene is ordinarily applied to a person engaged by the insurer to
procure new business. The insurance act defines an insurance agent as
one who is licensed under section 42 of that act and is paid by way of
commission or otherwise, in consideration of his soliciting or procuring
insurance business, including business relating to the continuance ,
renewal or revival of policies of insurance. He is, for all purposes, anauthorized salesman for insurance and needs a licence.
In pursuance of strengthening the human resources of the
IRDA, a comprehensive induction plan for recruiting professionals with
specialized qualifications and back ground was embarked upon. Eight
officers in the Actuary department joined the IRDA in the months of
August/September, 2007. Process of inducting more officers has alsostarted
Simultaneously.
The Authority, jointly with Andhra Pradesh Government,
handset up an Institute of Insurance and Risk Management (IIRM) at
Hyderabad in 2002. IIRM aims to serve the learning and development
needs of emerging markets in the context of their contemporary
challenges. IIRM is overseen by Board of Directors headed by
Chairman of the Authority. It continues to cater to the needs of the
industry by way of providing diversified range of courses, including
Post-Graduate Diploma in General Insurance, Life Insurance and Risk
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management. The IIRM courses are accredited by Chartered Insurance
Institute, London. The International School for Actuarial Science
(ISAS) has started functioning under the aegis of IIRM to achieve the
objectives of IRDA to enhance the availability of qualified skill
resources to the insurance industry.
Procedure for Becoming An Agent
(1) Qualifications of the applicant.
The applicant shall possess the minimum qualification of
a pass in 12 th standard or equivalent examination conducted by any
recognized Board/Institution, where the applicant resides in place with
a population of five thousand or more as per the last census, and a
pass in 10 th standard or equivalent examination from a recognized
Board/Institution if the applicant resides in any other place.
(2) Practical Training
1) The applicant shall have completed from an
approved institution, at least, one hundred hours practical training in
life or general insurance business, as the case may be, which may be
spread over three to four weeks, where such applicant is seeking
licence for the first time to act insurance agent.
Provided that applicant shall have completed from an
approved institution, at least, one hundred fifty hours practical
training in life and general insurance business, which may be spread
over six to eight weeks, where such applicant is seeking licence for the
first time to act as a composite insurance agent.
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2) Where the applicant, referred to under sub-
regulation (1), is-
A. An Associate/Fellow of the Insurance Institute of India,Mumbai;
B. An Associate/Fellow of the Insurance Chartered Accountants of
India, New Delhi;
C. An Associate/Fellow of the Insurance of Coasts and Works
Accountants of India, Calcutta;
D. An Associate/Fellow of the Insurance of company secretaries of
India, New Delhi;
E. An Associate/Fellow of the actuarial Society of India, Mumbai;
F. A Master of Business Administration of any Institution/University
recognized by any State Government or the Central
Government; or
G. Possessing any professional qualification in marketing from any
institution/University recognized by any State government or the
Central Government-
He shall have completed, at least, fifty hours practical training from an
approved institution. Provided that such applicant shall have
completed from an approved institution, at least, seventy hours
practical training in life and general insurance business, where such
applicant is seeking license for the first time to act as a composite
insurance agent.
3) An applicant, who has been granted a licence after the
commencement of these regulations, before seeking renewal of licence
to act as an insurance agent, shall have completed, at least twenty-
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five hours practical training in life or general insurance business, as
the case may be, from an approved institution.
Provided that such applicant before seeking renewal of licence to act
as a composite insurance agent shall have completed from an
approved institution, at least, fifty hours practical training in life and
general insurance Business.
(3) Examination.
The Applicant shall have passed the pre-recruitment
examination in life or general insurance business, or both, as the casemay be, conducted by the Insurance Institute of India, Mumbai, or any
other examination body.
(4) Fees payable
1) The fees payable to the authority for issue or renewal of licence
to act as insurance agent or a composite insurance agent shall be
rupees eight hundred twenty five.
2) The additional fees payable to the authority, under the
circumstances mentioned in sub-section (3) of section 42 of the act.
(5) Code of conduct
1) Every person holding a licence, shall adhere to the code of
conduct specified below:
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i. Every insurance agent shall,-
a. Identify himself and the insurance company of whom he is an
insurance agent;
b. Disclose his licence to the prospect on demand;
c. Disseminate the requisite information in respect of insurance
products offered for sale by his insurer and take into account the
needs of the prospect while recommending a specific insurance
plan;
d. Disclose the scales of commission in respect of the insurance
product offered for sale;
e. Indicate the premium to be charged by the insurer for the
insurance product offered for sale;
f. Inform promptly the prospect about the acceptance or rejection
of the proposal by the insurer;
g. Render necessary assistance to the policyholder or claimants or
beneficiaries in complying with the requirements for settlement
of claims by the insurer;
h. Advice every individual policyholder to effect nomination or
assignment or change of address or exercise of options, as the
case may be, and offer necessary assistance in this behalf,
wherever necessary;
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ii. No insurance agent shall,-
a. Solicit or procure insurance business without holding a valid
licence;
b. Induce the prospect to omit any material information in the
proposal form;
c. Induce the prospect to submit wrong information in the proposal
form or document submitted to the insurer for acceptance of the
proposal;
d. Interfere with any proposal introduced by any other insurance
agent;
e. Demand or receive a share of proceeds from the beneficiary
under an insurance contract;
f. Force a policyholder to terminate the existing policy and to effect
a new proposal from him within three years from the date of
such termination;
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g. Apply for fresh licence to act as an insurance agent, if his licence
was earlier cancelled by the designated person, and a period of
five years has not elapsed from the date of such cancellation;
h. Every insurance agent shall, with a view to conserve the
insurance business already procured through him, make every
attempt to ensure remittance of the premiums by the
policyholders within the stipulated time, by giving notice to the
policyholder orally and in writing;
(6)Cancellation of licence
The designated person may cancel a licence of an
insurance agent, if the insurance agent suffers, at any time during the
currency of the licence, from any of the disqualifications mentioned in
sub-section (4) of section 42 of the act, and recover from him the
licence and the identify card issued earlier.
(7) Issue of duplicate licenceThe authority may issue a duplicate licence replace a
licence lost, destroyed, or mutilated on payment a fee of rupees fifty.
(8) Non-application to existing insurance agents
Nothing contained in regulations 4 to 6 of these
regulations shall apply to the existing agents before the
commencement of these regulations.
(9) Repeal and savings
From the date of coming into force of the insurance
regulatory and development authority (licensing of corporation agents)
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regulations 2002, the insurance regulatory and development authority
(licensing of insurance agents) regulations 2000 or any part thereof
applying to corporate agents shall cease to have any effect, except as
respects things done or omitted to be done there under.
Methods of Remunerating Agents
1. A life insurance agent works on commission basis. He is paid a
percentage of the premium collected through his agency. Section
40a(1) of the insurance act stipulates that the maximum amount
which can be paid to a life insurance agent, by way of commission or
remuneration in any form, shall be 25% of the first years
premium,3 1/2 % of the second and third years renewal premium and
3% of subsequent renewal premium.
2. The insurance act provides, in section 44, for payment of
commission on renewal premium even after termination of the agency.
The commission will be limited to a rate not exceeding 4%. To be
eligible for this, the agent should have been an agent with that insurer
for at least (1) five years and policies are in force one year before
termination of agency or (2) 10 years. This commission will be payable
to the heirs of the agent after the agents death. This is a unique
facility which few other professions enjoy.
FUNCTION OF AN AGENT
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1. The agents main function is to solicit and procure life insurance
business for the insurer, which has appointed him for that purpose. At
the same time, he is trusted by the prospect to advice him suitably,
keeping his circumstances and needs in mind. He is thus, in the unique
roll of a person trusted by both parties to the transaction. His would
require him to
Understand the prospects needs and persuade him to buy a plan
of life insurance that suits his interests best
Complete the formalities ( paper work, medical examination )
necessary to get the policy expeditiously
Keep in touch to ensure that changing circumstances are
reflected in the arrangement relating to premium payments,
nomination and other necessary alterations
Facilities quick settlement of claims
Be totally honest with both the prospect and the insurer.
2. The regulation framed by the IRDA lays down a code of conduct
which incorporates some of these concepts. The code says interalia
that the agent shall
Identify himself and the insurance company of which he is an
agent
Disclose the licence to the prospect on demand
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Explain all available options to the prospect
Recommend a suitable plan taking into account the needs of the
prospect
Explain the nature and importance of the information required in
the proposal form
Inform the insurer about any material facts, including habits,
that could adversely affect the underwriting decision
Not to induce prospects to submit wrong information
RESPONSIBILITIES OF AN AGENT:
1. An agent, individual or corporate, is the main component of thedistribution channel for the life insurance business. He would be
required to solicit and procure new life and insurance business, in a
manner that is consistent with the interests of the policyholders of the
insurance company. For this purpose, for this purpose, he would have
to do the following.
Contact prospects for life insurance, study their needs and
persuade them to buy.
Complete all related formalities, including filling up proposal
forms, collecting premium, arranging medical examination, collecting
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proofs (of age or income), reports and other information required by
the underwriter.
2. After having sold a new insurance policy, the agent has to
ensure that the policy continues, without a lapse, till it becomes a
claim. The conservation of the policy is in the interests of all the three
persons concerned, the insurer, the policyholder and the agent. For
this purpose, he has to
Keep in touch with the policyholder to make sure that renewal
premiums are paid in time.
Ensure that nomination are made or changed according to
changing circumstances
Assist in settlement of the claim, by helping the claimants to
complete the necessary formalities and requirements.
3. In order that he may perform all these tasks well, the agent has
to be familiar with
The benefits under the various plans of insurance offered by his
insurer.
The office procedures for various matters including the forms
and documents. The main documents have been listed out in an earlier
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chapter. The forms and procedures will vary between one insurer and
another.
Ethical Behavior
1. Some characteristics of good ethical behaviors are
Placing the best interests of the client above ones own direct or
indirect benefits
Holding in the strictest confidence and considering as privileged,
all business and personal information pertaining to the clients affairs
Making full and adequate disclosure of all facts to enable clients
make informed decisions
2. There could be a likelihood of ethics being compromised in the
following situations
Having to choose between two plans, one giving much less
commission than the other
Temptation to recommend discontinuance of an existing policy
and taking out a new one
Becoming aware of circumstances that, if known to the insurer,
could adversely affect the interests of the client or the beneficiaries of
the claim.
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EMPLOYEE WELFARE:
MeritocracyWe ensure that good performance is always recognized andcommensurately rewarded. At Reliance Life Insurance , the sky isthe limit for the hard-working and the result-oriented.
Great work environmentReliance Life Insurance has a cheerful, warm and friendly workenvironment with a lot of professional freedom and encouragement forcreativity and innovation.
Learning and growthWe constantly create new learning opportunities for our people by wayof organizing interesting seminars, workshops and training programson a regular basis. Besides, we put people in various departments tohelp them develop crossfunctional abilities and a more wellrounded
professional experience for better career growth.
DiversityPeople from different cultures, backgrounds and walks of life makeReliance Life Insurance a multi-coloured kaleidoscope with a lot of zing. We gain multi-fold from this diversified experience.
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Fun at workLife at Reliance Life Insurance is extremely enjoyable. Thats workis interspersed with fun at regular intervalsparties, communityevents and other fun activities are part of life at Reliance LifeInsurance .Come and be a part of the exciting world of Reliance Life Insurance.View our Current Openings
sEqual Employment Opportunity PolicyReliance Life Insurances policy is that applicants are considered foremployment solely on the basis of their qualifications andcompetencies. Our hiring policy is geared to ensure that we hireemployee's without regard to their race, color, religion, national origin,citizenship, age, sex, marital status, ancestry, physical or mentaldisability, medical condition, veteran status or sexual orientation.
ONLINE SYSTEM FOR EMPLOYEES.
Reliance Life Insurance provides the best service compare to
the others company Aegon Religare Life Insurance provides the
services like:
Online salary ship
Loan
Mediclaim
Taxation
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Most important thing is that company provide loan
employee when they are in trouble. They give a loan of basic amount
multiply with 6 times of basic. And loan amount fulfill all payment in
20 month at the 8% rate p.a.
STRENGTHS:
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I. Financial Acumen - Holds a stable and diversified portfolio and
has received some of the highest ratings in financial strength
from industrys independent rating agencies.
II. Disciplined fund management - Years of experience in asset
management, and a strong track record in managing funds -
backed by the acclaimed expertise of Old Mutual plc
III. Innovativeness - Known for being an innovator in providing
world-class pragmatic financial solutions, with a constant focus
on customization and flexibility
IV. Unrelenting Customer Focus - A highly committed sales force,
with customer satisfaction as the key driving force - a major
differentiator
V. Transparency in Services - Daily declaration of fund
performances, regular performance benchmarking, well
regulated asset management, and monthly newsletter on market
updates
WEAKNESSES:
Industry in nascent stage.
Rural areas still not covered.
Not very known among Indian population.
Lack of credibility among the people because Reliance Life
Insurance being a private player.
Premiums are high as compared to its competitors.
Very few branches in the country.
Products:
The policy doesnt have the surrender option before third
year.
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Plan does not offer any guarantee or assured return.
Product profile is not very comprehensive.
Mortality, management and administrative charges are sky
scrapping as compared to its competitors.
OPPORTUNITIES:
Liberalization of Indian economy.
As the industry is growing the whole market is virgin.
The whole private sector is opened to be trapped even though
the competition is fierce from government owned insurance
companies.
Its a volume business that is even if the company has few good
corporate the turnover cease to increase by manifold.
Products:
Preserver funds look good due to comfortable liquidity in
the economy and there is little chance hike in short-term
rate by RBI.
Finance minister unveiled a budget favoring consumer
spending, boosting demand and therefore higher economic
growth.
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THREATS
The government players will become aggressive thus growth is
going to be tough.
Entry of other players is not ruled out.
Apprehension towards Reliance Life Insurance being a private
life insurance company.
We expect the industry to rationalize in future that is mergers
and acquisitions will happen, which will impact the industry and
Reliance Life Insurance life fortunes.
Products:
Past performance of these plans is not indicative of the
future performance of the plan.
The sum invested in the funds is subject to market risks
and there can be no assurance that the objective of plan
will be achieved.
All benefits payable under the policy are subject to tax
laws and other financial enactment, as they exist from
time to time.
s
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Problem Identification:The basic step of any research is to find out the problem of the
company, the problem may be inside in the company or outside of the
company. Well Defined problem is half solved. The researcher has
defined the problem of the organization which is converted in to the
study topic.
To study the organizational activities of all the
department with the help of secondary as well as primary
data collection method
Objective:The main of the present study of is accomplish the following
objective.
Proper understanding and analysis of life insurance
industry.
To know about brand awareness of Reliance Life
Insurance and customers preference about Reliance
Life Insurance .
Conduct market survey on a sample selected from the
entire population and derived opinion on that research.
According the market survey come know about how much
potential of insurance market in our city.
And base on analysis of the result thus obtained make a
report on that research.
Training aims at recruiting maximum number of Life
Advisors and to Sell the maximum policies for the company
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and bring the business for the company which ever is
going at the particular point of time.
Along with it I will be gaining the thorough knowledge of
insurance sector. This will give me in more confidence in
marketing products given to me.
As the Reliance Life Insurance well reputed company in
India its great chance for me to observed different
products launch by other competitor companies like ICICI
prudential, Bajaj alliance ,LIC, Max New York life etc. In
all, it is to understand the overall working of the Lifeinsurance sector.
The objective behind the project is as follows:
To find the right candidate.
To about their family background, occupation, social
relation, Qualification, Age.
Finalize candidates for the IRDA training
Limitation:
Some of the difficulties and limitations faced by me during my
training are as follows:
Lack of awareness among the people This is the
biggest limitation found in this sector. Most of the people are not
aware about the importance and the necessity of the insurance
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in their life. They are not aware how useful life insurance can be
for their family members if something happens to them.
Perception of the people towards Insurance
sector People still consider insurance just as a Tax saving
device. So today also there is always a rush to buy an Insurance
Policy only at the end of the financial year like January, February
and March making the other 9 months dry for this business.
Insurance does not give good returns Still today
people think that Insurance does not give good returns. They are
not aware of the modern Unit Linked Insurance Plans which are
offered by most of the Private sector players. They are still under
the perception that if they take Insura