PROJECT ONRELIANCE LIFE INSURANCE COMPANY
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF DEGREE OF
MASTERS OF COMMERCE (M.COM) FROM THE UNIVERSITY OF MUMBAI
SUMBITTED BYSHREERAJ HARIHARANM.COM PART-I (SEM-II)ROLL NO
362013-2014
UNDER THE GUIDANCE OFPROF. JAI KOTECHA
LORD UNIVERSAL COLLEGE,TOPIWALA MARG, OFF STATION ROAD, GOREGAON
(WEST), MUMBAI, 400062
DECLARATION
I MR SHREERAJ HARIHARAN student of LORD UNIVERSAL COLLEGE, M.com
Part-I (SEM II) hereby declare that I have completed project on
RELIANCE LIFE INSURANCE COMPANY, in the academic year
2013-2014.This information is true &original to best of my
knowledge
Date: signature of student Acknowledgement
With deep satisfaction and immense pleasure I am presenting this
project report on RELIANCE LIFE INSURANCE COMPANY in partial
requirements for the M.COM course.I would like to extend my sincere
gratitude and appreciation to my project guide Prof. JAI KOTECHA
who assisted me into this project. It has indeed been a great
experience working under her guidance during the course of the
project. I would like to thank her for his valuable advice and
support throughout this project.And last but not the least I would
like to thank all the Faculty Members, staff of the institute for
their help in making my project an unforgettable and great learning
experience.
Date: signature of student
CONTENTS
INDUSTRY PROFILE
---------------------------------------------------------------05
MEANING OF
INSURANCE-------------------------------------------------------09
IMPORTANCE OF
INSURANCE-------------------------------------------------10
CUSTOMER
SATISFACTION-----------------------------------------------------11
ABOUT RELIANCE LIFE INSURANCE
COMPANY-----------------------16
COMPETITORS-----------------------------------------------------------------------26
ORGANIZATIONAL STUDY OF RELIANCE LIFE INSURANCE WITH REFERENCE
TO CUSTOMER
SATISFACTION-----------------------------------------------------------------------31
ANNUAL
REPORT-------------------------------------------------------------------43
CONCLUSION-------------------------------------------------------------------------55BIBLIOGRAPHY---------------------------------------------------------------------57
INDUSTRY PROFILE
In India, insurance has a deep-rooted history. It finds mention
in the writings of Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra
) and Kautilya (Arthasastra ). The writings talk in terms of
pooling of resources that could be re-distributed in times of
calamities such as fire, floods, epidemics and famine. This was
probably a pre-cursor to modern day insurance. Ancient Indian
history has preserved the earliest traces of insurance in the form
of marine trade loans and carriers contracts. Insurance in India
has evolved over time heavily drawing from other countries, England
in particular. 1818 saw the advent of life insurance business in
India with the establishment of the Oriental Life Insurance Company
in Calcutta. This Company however failed in 1834. In 1829, the
Madras Equitable had begun transacting life insurance business in
the Madras Presidency. 1870 saw the enactment of the British
Insurance Act and in the last three decades of the nineteenth
century, the Bombay Mutual (1871), Oriental (1874) and Empire of
India (1897) were started in the Bombay Residency. This era,
however, was dominated by foreign insurance offices which did good
business in India, namely Albert Life Assurance, Royal Insurance,
Liverpool and London Globe Insurance and the Indian offices were up
for hard competition from the foreign companies. In 1914, the
Government of India started publishing returns of Insurance
Companies in India. The Indian Life Assurance Companies Act, 1912
was the first statutory measure to regulate life business. In 1928,
the Indian Insurance Companies Act was enacted to enable the
Government to collect statistical information about both life and
non-life business transacted in India by Indian and foreign
insurers including provident insurance societies. In 1938, with a
view to protecting the interest of the Insurance public, the
earlier legislation was consolidated and amended by the Insurance
Act, 1938 with comprehensive provisions for effective control over
the activities of insurers.The Insurance Amendment Act of 1950
abolished Principal Agencies. However, there were a large number of
insurance companies and the level of competition was high. There
were also allegations of unfair trade practices. The Government of
India, therefore, decided to nationalize insurance business.An
Ordinance was issued on 19th January, 1956 nationalizing the Life
Insurance sector and Life Insurance Corporation came into existence
in the same year. The LIC absorbed 154 Indian, 16 non-Indian
insurers as also 75 provident societies245 Indian and foreign
insurers in all. The LIC had monopoly till the late 90s when the
Insurance sector was reopened to the private sector. The history of
general insurance dates back to the Industrial Revolution in the
west and the consequent growth of sea-faring trade and commerce in
the 17th century. It came to India as a legacy of British
occupation.General Insurance in India has its roots in the
establishment of Triton Insurance Company Ltd., in the year 1850 in
Calcutta by the British. In 1907, the Indian Mercantile Insurance
Ltd, was set up. This was the first company to transact all classes
of general insurance business. 1957 saw the formation of the
General Insurance Council, a wing of the Insurance Association of
India. The General Insurance Council framed a code of conduct for
ensuring fair conduct and sound business practices. In 1968, the
Insurance Act was amended to regulate investments and set minimum
solvency margins. The Tariff Advisory Committee was also set up
then. In 1972 with the passing of the General Insurance Business
(Nationalization) Act, general insurance business was nationalized
with effect from 1st January, 1973.107 insurers were amalgamated
and grouped into four companies, namely National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance
Company Ltd and the United India Insurance Company Ltd. The General
Insurance Corporation of India was incorporated as a company in
1971 and it commence business on January 1sst 1973. This millennium
has seen insurance come a full circle in a journey extending to
nearly 200 years. The process of re-opening of the sector had begun
in the early 1990s andthe last decade and more has seen it been
opened up substantially. In 1993, the Government set up a committee
under the chairmanship of RN Malhotra, former Governor of RBI,to
propose recommendations for reforms in the insurance sector. The
objective was to complement the reforms initiated in the financial
sector.The committee submitted its report in 1994 wherein, among
other things, it recommended that the private sector be permitted
to enter the insurance industry. They stated that foreign companies
be allowed to enter by floating Indian companies, preferably a
joint venture with Indian partners. Following the recommendations
of the Malhotra Committee report, in 1999, the Insurance Regulatory
and Development Authority (IRDA) was constituted as an autonomous
body to regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April, 2000. The key objectives
of the IRDA include promotion of competition so as to enhance
customer satisfaction through increased consumer choice and lower
premiums, while ensuring the financial security of the insurance
market. The IRDA opened up the market in August 2000 with the
invitation for application for registrations. Foreign companies
were allowed ownership of up to 26%. The Authority has the power to
frame regulations under Section 114A of the Insurance Act, 1938 and
has from 2000 onwards framed various regulations ranging from
registration of companies for carrying on insurance business to
protection of policyholders interests. In December, 2000, the
subsidiaries of the General Insurance Corporation of India were
restructured as independent companies and at the same time GIC was
converted into a national re-insurer. Parliament passed a bill
de-linking the four subsidiaries from GIC in July, 2002. Today
there are 24 general insurance companies including the ECGC and
Agriculture Insurance Corporation of India and 23 life insurance
companies operating in the country. The insurance sector is a
colossal one and is growing at a speedy rate of 15-20%. Together
with banking services, insurance services add about 7% to the
countrys GDP. A well-developed and evolved insurance sector is a
boon for economic development as it provides long- term funds for
infrastructure development at the same time strengthening the risk
taking ability of the country.
Meaning of Insurance
Insurance may be described as a social device to reduce or
eliminate risk ofloss to life and property. Insurance is a
collective bearing of risk. Insurance is a financial device to
spread the risks and losses of few people among a large number of
people, as people prefer small fixed liability instead of begun
certain and changing liability. Insurance can be defined as a legal
contract between two parties whereby one party called insurer
undertakes to pay a fixed amount of money on the happening of a
particular event, which may be certain or uncertain. The other
party called insured pays in exchange a fixedsum known as premium.
Insurance is desired to safeguard oneself and ones family against
possible losses on account of risks and perils. It provides
financial compensation forthe losses suffered due to thehappening
of any unforeseen events.There are three parties in a life
insurance transaction: the insurer, the insured, and the owner of
the policy (policyholder), although the owner and the insured are
often the same person. Another important person involved in a life
insurance policy is thebeneficiary. The beneficiary is the person
or persons who will receive thepolicy proceeds upon the death of
the insured. Life insurance may be divided into two basic classes
term and permanent.
Term life insurance provides for life insurance coverage for a
specified term of years for a specified premium. The policy does
not accumulate cash value. Permanent life insurance is life
insurance that remains in force until the policy matures, unless
the owner fails to pay the premium when due.
IMPORTANCE OF INSURANCE
Insurance constitutes one of the major segments of the financial
market. Insurance services play predominant role in the process of
financial intermediary. Today insurance industry is one of the most
growing sectors in India. There is lot of potential in theIndian
Insurance Industry. There are many issues, which require study. The
scope of the study ofinsurance industry of India would be very
great as there are ongoing developments in the industry after the
opening of the sector. The major issue right now is the hike in FDI
(Foreign Direct Investment) limit from 26% to 49% in the insurance
sector. Government may in nearfuture allow 49% FDI in Insurance.
This would lead to more capital inflowby foreign partners. Another
major issue is the effects on LIC after the entry of private
players in the market. Though market share of LIC has been
affected, it has improved in terms of efficiency. There are number
of other hot topics like penetration of Health Insurance, Rural
marketing of insurance, new distribution channels, new product
ranges, insurance brokers regulation, incentive scheme of
development officers of LIC etc. So it offers lot of scope for
studying the insurance industry. Right now the insurance industry
has great opportunities in a country like India or China which huge
population. Also the penetration of insurance in India is very low
in both Life and non-Life segmentsSo there is lot potential to be
trapped.
Customer Satisfaction
Defining customer satisfactionBecause the concept of customer
satisfaction is new to many companies, it's important to be clear
on exactly what's meant by the term.Customer satisfaction is the
state of mind that customers have about a company when their
expectations have been met or exceeded over the lifetime of the
product or service. The achievement of customer satisfaction leads
to company loyalty and product repurchase. There are some important
implications of this definition: Because customer satisfaction is a
subjective, non quantitative state, measurement won't be exact and
will require sampling and statistical analysis. Customer
satisfaction measurement must be undertaken with an understanding
of the gap between customer expectations and attribute performance
perceptions. There should be some connection between customer
satisfaction measurement and bottom-line results.
"Satisfaction" itself can refer to a number of different facts
of the relationship with a customer. For example, it can refer to
any or all of the following: Satisfaction with the quality of a
particular product or service Satisfaction with an ongoing business
relationship Satisfaction with the price-performance ratio of a
product or service Satisfaction because a product/service met or
exceeded the customer's expectationsEach industry could add to this
list according to the nature of the business and the specific
relationship with the customer. Customer satisfaction measurement
variables will differ depending on what type of satisfaction is
being researched. For example, manufacturers typically desire
on-time delivery and adherence to specifications, so measures of
satisfaction taken by suppliers should include these critical
variables.Clearly defining and understanding customer satisfaction
can help any company identify opportunities for product and service
innovation and serve as the basis for performance appraisal and
reward systems. It can also serve as the basis for a customer
satisfaction surveying program that can ensure that quality
improvement efforts are properly focused on issues that are most
important to the customer.
Objectives of a customer satisfaction surveying programIn
addition to a clear statement defining customer satisfaction, any
successful surveying program must have a clear set of objectives
that, once met, will lead to improved performance. The most basic
objectives that should be met by any surveying program include the
following: Understanding the expectations and requirements of all
your customers Determining how well your company and its
competitors are satisfying these expectations and requirements
Developing service and/or product standards based on your findings
Examining trends over time in order to take action on a timely
basis Establishing priorities and standards to judge how well
you've met these goalsBefore an appropriate customer satisfaction
surveying program can be designed, the following basic questions
must be clearly answered: How will the information we gather be
used? How will this information allow us to take action inside the
organization? How should we use this information to keep our
customers and find new ones?Careful consideration must be given to
what the organization hopes to accomplish, how the results will be
disseminated to various parts of the organization and how the
information will be used. There is no point asking customers about
a particular service or product if it won't or can't be changed
regardless of the feedback.Conducting a customer satisfaction
surveying program is a burden on the organization and its customers
in terms of time and resources. There is no point in engaging in
this work unless it has been thoughtfully designed so that only
relevant and important information is gathered. This information
must allow the organization to take direct action. Nothing is more
frustrating than having information that indicates a problem exists
but fails to isolate the specific cause. Having the purchasing
department of a manufacturing firm rate the sales and service it
received on its last order on a scale of 1 (terrible) to 7
(magnificent) would yield little about how to improve sales and
service to the manufacturer.The lesson is twofold. First, general
questions are often not that helpful in customer satisfaction
measurement, at least not without many other more specific
questions attached. Second, the design of an excellent customer
satisfaction surveying program is more difficult than it might
first appear. It requires more than just writing a few questions,
designing a questionnaire, calling or mailing some customers, and
then tallying the results.Understanding differing customer
attitudesThe most basic objective of a customer satisfaction
surveying program is to generate valid and consistent customer
feedback (i.e., to receive the voice of the customer, which can
then be used to initiate strategies that will retain customers and
thus protect the most valuable corporate asset--loyal customers).As
it's determined what needs to be measured and how the data relate
to loyalty and repurchase, it becomes important to examine the
mind-set of customers the instant they are required to make a
pre-purchase (or repurchase) decision or a recommendation decision.
Surveying these decisions leads to measures of customer loyalty. In
general, the customer's pre-purchase mind-set will fall into one of
three categories--rejection (will avoid purchasing if at all
possible), acceptance (satisfied, but will shop for a better deal),
and/or preference (delighted and may even purchase at a higher
price).This highly subjective system that customers themselves
apply to their decisions is based primarily on input from two
sources: The customers' own experiences--each time they experience
a product or service, deciding whether that experience is great,
neutral or terrible. These are known as "moments of truth." The
experiences of other customers--each time they hear something about
a company, whether it's great, neutral or terrible. This is known
as "word-of-mouth."There is obviously a strong connection between
these two inputs. An exceptional experience leads to strong
word-of-mouth recommendations. Strong recommendations influence the
experience of the customer, and many successful companies have
capitalized on that link.Obviously, the goal of every company
should be to develop customers with a preference attitude (i.e., we
all want the coveted preferred vendor status such that the
customer, when given a choice, will choose our company), but it
takes continuous customer experience management, which means
customer satisfaction measurement, to get there--and even more
effort to stay there.
ABOUT RELIANCE LIFE INSURANCE COMPANY
Reliance Life Insurance Company Limited (Reliance Life
Insurance)is a part ofReliance CapitalLtd. of the RelianceAnil
Dhirubhai Ambani Group. Reliance Capital is one of Indias leading
private sectorfinancial servicescompanies, and ranks among the top
3 private sector financial services andbankingcompanies, in terms
of net worth.Nippon Life Insurance Company acquired 26% interest in
equity share capital of the Company effective October 7, 2011
subsequent to receipt of all regulatory approval.Nippon Life
Insurance, also called Nissay, is Japan's largest private life
insurer with revenues of Rs 346,834 crore (US$ 80 Billion) and
profits of over Rs 12,199 crore (US$ 3 billion). The Company has
over 14 million policies in Japan, offers a wide range of products,
including individual and group life and annuity policies through
various distribution channels and mainly uses face-to-face sales
channel for its traditional insurance products. The company
primarily operated in Japan , North America, Europe and Asia and is
headquartered in Osaka, Japan. It is ranked 81st in Global Fortune
500 firms in 2011.Established in 2001, Reliance Life insurance
Company is a private insurance company; subsidiary of reliance
capital ltd. Reliance life insurance is based in Mumbai and only
the second company among private insurer to have 9001:2000 ISO
certification.Reliance Life Insurance offers you products that
fulfill your savings and protection needs. Our aim is to emerge as
a transnational Life Insurer of global scale and standard.Reliance
Life Insurance is a Reliance Capital Company and is part of
Reliance Group. Reliance Capital is one of Indias leading private
sector financial services companies, and ranks among the top 3
private sector financial services and banking companies, in terms
of net worth. Reliance Capital has interests in asset management
and mutual funds, stock broking, life and general insurance,
proprietary investments, private equity and other activities in
financial services.
Reliance Group also has presence in Communications, Energy,
Natural Resources, Media, Entertainment, Healthcare and
Infrastructure.Reliance Life Insurance has plenty of plans onthe
anvil. It has also 118branches, with strong presence in South and a
bouquet of products catering savings protection and investment need
of individuals and corporate. The head-office of it is at Chennai.
The company has already added 600 employees in addition to the 1000
plus staff of the erstwhile AMP SanmarLife Insurance Company
Limited. Reliance Life Insurance aims to be the consumers preferred
life insurer by understanding and meeting his needs. Think Bigger,
Think Better!
Distribution Network/ Branches:Reliance life insurance has a
strong distribution system with around 1250 branches with 2, 00,000
advisors.Financial informationThe total premium earned for the half
year ended September 30, 2010 was Rs 27,862 million. The profit
after tax for the same period is Rs. 1634 million. A total of 4968
claims were made during the period out of which 3635 claims were
settled and 374 cases were rejected. Mission and visions
MissionCreate unmatched value for everyone through dependable,
effective, transparent and profitable life insurance and pension
plan.VisionEmpowering everyone live their Dreams.Our GoalReliance
life insurance would strive hard to achieve three goals mentioned
below: Emerge as transnational Life insurer of global scale
standard. Create best value for customers, shareholders and all
stake holders. Achieve impeccable reputation and credentials
through best business practices.
Key features of the life insurance
1) Nomination: When one makes a nomination, as the policyholder
you continue to be the owner of the policy and the nominee does not
have any right under thepolicy so long as you are alive. The
nominee has only the right to receive thepolicy monies in case of
your death within the termof the policy.
2) Assignment: If your intention is that your policy monies
should go only to a particularperson, you need to assign the policy
in favorof that person.
3) Death Benefit: The primary feature of a life insurance policy
isthe death benefit it provides. Permanent policies provide a death
benefit that is guaranteed for the life ofthe insured, provided the
premiums have been paid and the policy has notbeen surrendered. 4)
Cash Value: The cash value of a permanent life insurance policy is
accumulated throughout the life of the policy. It equals the amount
a policy owner would receive, after any applicable surrender
charges, if the policy were surrendered before the insured's
death.
5) Dividends: Many life insurance companies issue life insurance
policies that entitle thepolicy owner to share in the company's
divisible surplus.
6) Paid-Up Additions: Dividends paid to a policy owner of a
participating policy can be used innumerous ways, one of which is
toward the purchase of additional coverage, called paid-up
additions.
7) Policy Loans: Some life insurance policies allow a policy
owner to apply for a loan against the value of their policy. Either
a fixed or variable rate of interest is charged. This feature
allows the policy owner an easily accessible loan in times ofneed
or opportunity.
8) Conversion from Term to Permanent: When in need of temporary
protection, individuals often purchase term life insurance. If one
owns a term policy, sometimes a provision is available that will
allow her to convert her policy to a permanent one without
providing additional proof of insurability.
Benefits of Life Insurance
1) Risk cover: Life Insurance contracts allow an individual to
have a risk cover against any unfortunate event of the future.
2) Tax Deduction: Under section 80C of the Income Tax Act of
1961 one can get tax deduction on premiums up to one lakh rupees.
Life Insurance policies thus decrease the total taxable income of
anindividual.3) Loans: An individual can easily access loans from
differentfinancial institutions bypledging his insurance
policies.
4) Retirement Planning: What had provided protection against the
financial consequences ofpremature death may now be used to help
them enjoy their retirement years. Moreover the cash value can be
used asan additional income in the old age.
5) Educational Needs: Similar to retirement planning the cash
values that flow from ones life insurance schemes can be utilized
for educational needs of the insurer or his children.
Product Portfolio:
Life insurance products are designed to suit the requirements of
customers. Fundamentally the product provide for: Risk cover
Investment Health cover
In every product, to a certain degree, risk cover is imperative
for it to fall under the category of insurance. Based on the
coverage of theproduct, the premiums are calculated and the
customer pays accordingly. In order to suggest the right product,
it is essential for an agent to understand the requirements of the
customer well. Reliance Life Insurance Company Limited has offered
9traditional plans to the customers, which are listed asfollows:1.
Reliance Term Plan2. Reliance Whole Life Plan3. Reliance Child
Plan4. Reliance Endowment Plan5. Reliance Special Endowment Plan6.
Reliance Cash Flow Plan7. Reliance Credit Guardian Plan8. Reliance
Special Credit Guardian Plan.Each of the above traditional plans is
discussed asfollows:
Reliance Term plan: This insurance policy is designed for those
who only want life cover for theprotection of their family, and do
not wish to save for themselves. It can alsobe useful to business
firms that wish to provide financial security to theirbusiness
against the sudden loss of partners or valuable manpower. Since
there is no saving element or bonus provision, the premium is very
low. Hence, high risks plans with a low premium.
Reliance Whole Life Plan: This insurance policy is designed for
people who do not wish to avail any ofbenefits themselves but wish
to create an immediate estate to protect theirfamily by availing of
insurance cover on their lifeat a very low cost.
Reliance Child Plan: This insurance policy is designed for
people who wish to save money for a future time when there will be
a recurring need for substantial amounts ofmoney. This is
especially true when it comes to paying large sums of money for
higher education as and when your sonor daughter is studying to
become an Engineer, a Doctor or specialize in some other field, or
is perhapsplanning to go abroad. This money is payable in equal
installments over the last 4 years of thepolicy term.
Reliance Endowment Plan: Reliance Life Insurances Reliance
Endowment Plan is the key to all yourfinancial needs. It is an
inexpensive and easy way to protect you, yourfamily or your
business. In a nutshell this plan will keep you financially
prepared for all the special occasions in your life - your
daughters wedding, your childs university education or even a new
office for your business - by eliminating the burden that a
shortage of money creates. In the event of your untimely death,
Reliance Endowment Plan will also assist your loved ones through
this difficult time bythe financial support that it provides.
Reliance Endowment Plan also gives you the additional benefit
ofparticipating in the companys profits, which you will receive at
the end ofthe policy period.
Reliance Cash Flow Plan: This insurance policy is designed for
those who have a recurring need forreinvestment in business or look
for short-term investment channels. The advantage of the policy is
that they need not part with a sizable amount ofmoney at any one
time, but create, through regular premium payments, aperiodic
return of lump sums which become available for reinvestment a the
higher returns, while providing simultaneously, substantial life
cover. Alternatively, it can be used to meet any immediate
financial crisis in the family like your son's college admission,
your daughter's engagement, and renovation of your home or perhaps,
a holiday abroad. The money is payable in installments. The first
installment is paid at the end of the 4th year and thereafter at
the end of every 3rd year. Reliance Credit Guardian Plan: This
insurance policy is designed for those who not only safeguards
individuals but also families and businesses from the financial
hardship that could arise from unfortunate and unexpected
death.
Reliance Special Credit Guardian Plan: This insurance policy is
designed for those who not only safeguards individuals but also
families and businesses from the financial hardship that could
arise from unfortunate and unexpected death, disability or critical
illnesses
Unit linked policyA unit-linked policy is a life assurance
policy in which the benefits depend on the performance of a
portfolio ofshares.Each premium paid by the insured person is
split: a part is used toprovide life assurance cover, while the
balance (after the deduction of costs, expenses, etc.) is used to
buy units ina unit trust. In this way, a small investor can benefit
from investment in a managed fund without making a large financial
commitment. As they are linked to the value of shares, unit linked
policies can go up or down in value. Policyholders can surrender
the policy at any time and the surrender value is the selling price
of the units purchased by the date of cancellation 9lessexpense). A
small part of the contribution is used for providing life coverand
the balance is invested in unit. Legal heirs are entitled to the
amount ofinsurance cover and entitled units in case of death ofthe
insured. Reliance Life Insurance Company Limited has also offered
the two Unit Linked Plans, which are listed as follows:1. Reliance
Market Return Plan.2. Reliance Golden Years Plan.
The above two ULIP plans are discussed asfollows:
3. Reliance Market Return Plan: Reliance Market Return Fund is
the unit-linked product that helps you invest in the financial
markets in a combination of investment instruments of yourchoice.
You can enjoy the returns from the markets without the trouble
ofmonitoring and managing your own investment portfolio and keeping
trackof the market movements. At the same time your investment
premiumsprovide you with insurance cover. Reliance Market Return
Fund unit-linked insurance plan provides you with a basket of fund
options that balances yourreturn and risk exposure while providing
life cover at thesame time.
4. Reliance Golden Years Plan: Reliance Golden Years Plan. The
Reliance Life Insurance no-worry stay happy retirement plan.
Reliance Golden Years Plan is a flexible package thatprovides
freedom of choice in choosing the type of investment, life cover,
vesting options such as commuting and annuity options.
Contributionsprovide Income tax savings as well. Reliance Golden
Years Plan, a flexible pension product is available for all
individuals who are between the ages of 18 and 65.Marketing
campaignsReliance Life insurance has very has a very strong brand
recall because of reliance brand image. Reliance life has launched
commercials as well as done outdoor campaigns from time to time. In
2009, Reliance life associated itself with the blockbuster movie 3
idiots (tagline All is well) to promote another proposition jab hai
saath Reliance life insurance, all is well.
Reliance Life Product Table:
Retirement/pension plansReliance life traditional golden
plan
Child planReliance Child plan
Term PlanReliance Term plan
Term PlanReliance Simple term plan
Term Plan Reliance Special term plan
Term PlanReliance Credit guardian plan
Term PlanReliance Special credit guardian plan
Saving & Investment Plan Reliance Money multiplier plan
Saving & Investment PlanReliance Endowment plan
Saving & Investment PlanReliance Super five plus
Saving & Investment PlanReliance connect 2 life plan
Saving & Investment PlanReliance whole life plan
Saving & Investment PlanReliance cash flow plan
Table 2.1
Competitors
Private players: List of the Life Insurance companies in India
as on 31st December 2011
Life Insurance Corporation of IndiaMetLife India
Bajaj Allianz Life ING-Vysya
SBI LifeICICI-prudential
TATA-AIGCanara HSBC OBC
Birla Sun LifeAEGON Religare
SaharaDLF Pramerica
IDBI FederalStar Union Dai-ichi
Future generali IndiaIndia First
Max New YorkShriram
Bharti AXAKotak Mahindra Old Mutual
HDFC Standard AVIVA
Table 2.2
Organizational Structure
Graph 2.1Now lets depict the market share ofthese players on
diagram
Graph 2.2Here we can see from the diagram that LIC is the market
leader and it commands the major part of the total life insurance
market. Its market share was approximately 98% before 2000 but
after the entry of private players it has significantly decreased.
Among private players Bajaj Allianz stands first. It has the market
share ofapproximately 7.56% in the total market and it constitutes
40% ofthe market share among private players. HDFC Standard comes
third. SBI Life insurance Company Limited comes fourth. ICICI
Prudential is also one of the fastest growing life insurance
companies in India. Rest of the players has marketshare below
2%.
DepartmentsMarketing Department:Marketing department of reliance
life insurance Company is of two types. Online marketing department
and Direct marketing department. Online marketing department will
advertises the company by telling their plans and the reputation
and department advertise the company through agents.HR
Department:It is the management of an organizations workforce, or
human resources. It is responsible for the attraction, selection,
training, and assessment and rewarding of employees, while also
overseeing organizational leadership and culture, and ensuring
compliance with employment and labor laws. In circumstances where
employees desire and are legally authorized to hold a collective
bargaining agreement the employees, HR will typically also serve as
the companys primary liaison with the employees representatives
(usually a labor union).Finance Department:Finance is often defined
simply as the management of money or fund management. Modern
finance however is a family of business activity that includes the
organization, marketing, and management of each and money
surrogates through a variety of capital accounts, instrument and
markets created for transaction and trading assets, liabilities and
risks. Awards and Achievements 3rd largest private players in a
span of just 4 years, moved from 11thposition to 3rd. Amongst the
fastest growing companies for 4 year in a row. Continuous increase
in market share over 4 years, from 1.9% in 2005-06 to 10.26%. RLIC
has achieved a growth rate of 21% while the private industry has
grown at 13%. Fastest to reach the 5 million policy mark. Largest
private insurer in terms of policy count in 2009-10. 1250 branches
2, 00,000 advisors and over 18,000 employees. RLIC continues to be
amongst the foremost Life Insurance companies in India to certified
ISO 9001:2000 for all processes. Awarded the Jamnalal Uchit
Vyavahar puraskar 2007 Certificate of Merit in financial services
category by council for fair Business practices(CFBP) The Company
has also won the DL Shah Quality Council of India Commendation
Award in the services category in Feb 2008 for its work on
promoting self help channel for service.
Organizational study of Reliance Life Insurance with Reference
to customer satisfaction.
Statement of the Problem
Reliance life insurance is one of the best insurance companies
in India. They have many branches in all states. They have gathered
a lot of consumers to build their market n insurance sector.
Consumer satisfaction is the very essential factor for doing any
type of business. A firm should maintain a level of consumer
satisfaction with the services they provide. Consumers satisfaction
is hence essential for the company in order to maintain the
consumers to be loyal.
Objectives of the Study:
To find out overall standard of Reliance Life Insurance with
respect to service provided to customers. To identify the factors
affecting customer satisfaction in life insurance sector. To offer
suggestions based on findings.
Need for the Study:
Review of literature reveals that very little research has been
done on insurance industry in India. Considering the fact that
insurance is coming up in a big way in India, there is an emergent
need for doing research on various facets of insurance industry in
India. The need and significance of the study can be summarized
as:
The basic need for the study is to know how much customers are
satisfied with services of reliance life insurance.
Insurance has a very long history but most of the studies are
done from the finance point of view not from marketing view point.
Such studies are important because companies need to market
themselves to increase their market share. This research project is
an effort to fill that gap. As revealed by the review of
literature, customer satisfaction has been ignored in the field of
insurance services.
Scope of Study:
The study is based on the survey conducted on various customers
who shared their satisfaction levels with reliance life insurance
Company and their services. The scope of the study is restricted to
the Life Insurance sector only. Although there are 23 life
insurance companies in the market Life Insurance Corporation (LIC)
holds 64 percent of the market share.
Methodology of the Study:
Methodology of the study adopted is the survey method. For
primary data a sample size of 40 customers were contacted and data
is obtained from them through questioners. Respondents were
contacted at their work places itself for their convenience. The
findings are limited to the city of Bangalore. For secondary data
marketing books, magazines, journals were referred.
Sources of data:
For the purpose of this study data is collected from two sources
mentioned above.Namely: 1. Primary source 2. Secondary source
1. Primary source: It is the original source. The data is
collected directly from respondents through questioners, personal
interviews and through observation.
2. Secondary source: These are the sources containing data which
have been collected and compiled for another purpose. This source
consists of readily available information and already compiled
statistical statement whose data may be used by researchers for
their study.
Tools for Data Collection
A carefully planned structured questionnaire was designed to
collect data from the insurance holders. The following aspects were
covered in the questionnaire.
Sampling:
Sampling is one of the major tools for marketing research, which
is connected with collecting, analyzing and interpreting data. It
involves the study, inconsiderable details, of relatively small
numbers of information taken from a larger group. It is a process
of extracting sample from a population. Defining the population
requires that one can describe the characteristics of the group
which information is required in clear unambiguous terms. The
population comprises individuals. Households, firms and other
organizations.
Sampling Technique:
The technique following is "Simple Random Sampling. Simple
random sampling: A simple random sample is a subset of individuals
(a sample) chosen from a larger set (a population). Each individual
is chosen randomly and entirely by chance, such that each
individual has the same probability of being chosen at any stage
during the sampling process.
Sample Size:
The questionnaire contains 10 questions and sample size is
40.
Limitations of the Study:
The case study pertains to only one branch of Reliance Life
Insurance Company due to the limitation of time frame.
The sample size of 40 might not represent the perception of
whole population.
The opinion expressed by respondents may be biased.
Another limitation is time shortage. If given more time the
reports must have been more concluding.
This study is restricted to customers only.
Sample size is restricted to only 40 respondents due to time
constraints.
Data Analysis and InterpretationAnalysis was done on the
responses received from the people that were interviewed. In this
section we will look at the questions detail, the count of
responses received, the percentage of response received.Basis the
same we will arrive at a finding and then proceed to draw a logical
conclusion from the same. The questionnaire in detail is attached
at the end of this report.All the Respondents were assured of full
confidentially after they agreed to our request of answering the
questionnaire for the benefit of study. Further they were also
informed that the information being provided by them was going to
be used strictly for an educational purpose and only towards the
same.In this chapter ahead we will deal with each one of these
questions individually and understand what results can be derived
from the same .Every question will be followed by a logical chart
providing a visual representation of the findings.
Table 4.1 Showing Importance of Insurance OptionsNo. of
ResponsesPercentage
Yes3587.5
No37.5
Dont know25
Total40100
Table 4.1AnalysisThe above table shows that out of 40
respondents, 35 comprising 87.5% of the total sample size feels
that yes insurance is important, while 3 comprising 7.5% feels that
it is not important and remaining 5% dont know.
Graph representing the responses received in Percentage
Graph 4.1
InterpretationFrom the above chart we can infer that most of the
people think that insurance is important, while a mere population
says No, insurance is not important and remaining minority says no
idea. The analysis shows that people are highly educated and knows
the importance of insurance in their life.
Table 4.2 Showing Quality of Service from Company
AdvisorsOptionsNo. of ResponsesPercentage
Excellent512.5
Good2870
Fair512.5
Poor25
Total40100
Table 4.2AnalysisThe above table shows that out of 40
respondents, 5 comprising 12.5% of the total sample size say
reliance life insurance is excellent, while 28 comprising 70% feels
that it is good, 5 people say just fair and remaining 5% regard it
a poor company.
Graph representing the responses received in Percentage
Graph 4.2
InterpretationFrom the above chart we can understand that a
major chunk of the population grades the service received as good,
while an equal percentage people feel that it is excellent and fair
service. This is actually a good point for the company that most of
the people grade their service as good. Their should be a little
improvement where we could take a little extra care of customers
and have more satisfied customers.
Table 4.3 Showing Recommendation analysis of Reliance Life
InsuranceOptionsNo. of RespondentsPercentage
Definitely1537.5
I think so yes2152.5
I dont think so37.5
No12.5
Total40100
Table 4.3
AnalysisThe above table shows that out of 40 respondents, 15
comprising 37.5% of the total sample size says they would
definitely recommend Reliance to their friend in need, while 21
comprising 52.5% feels they think they will recommend, other 10%
had negative response.
Graph representing the responses received in Percentage
Graph 4.3InterpretationFrom the above chart we can interpret
that 90% of the people are positive when the question of
recommendation arises. This is a very good point for the company.
In a country like India a word of mouth has a lot of value. This
would help in business growth for the company.
Table 4.4 Showing Satisfaction levels regarding Amount of
Service ReceivedOptionsNo. of RespondentsPercentage
Very satisfied2050
Mostly satisfied1230
Quite indifferent615
Dissatisfied25
Total40100
Table 4.4AnalysisThe table shows that out of 40 respondents, 20
comprising 50% of the total sample size says they are very
satisfied with Reliance, while 12 comprising 30% feels mostly
satisfied. Other 20% feels lack in service quantity.
Graph representing the responses received in Percentage
Graph 4.4InterpretationFrom the above chart it is very clear
that half of the people in Reliance family are very satisfied in
terms quantity service they received. Nearly a third of people feel
mostly satisfied, whereas remaining people are not satisfied with
quantity service, the company needs to improve in terms of service
and satisfy the customers. This is a very crucial point as negative
things spread faster than the positive ones.
Table 4.5 Showing whether the guidance received helped to deal
with the problems more effectivelyOptionsNo. of
respondentsPercentage
Yes3280
No820
Total40100
Table 4.5AnalysisThe table shows that out of 40 respondents, 32
comprising 80% of the total sample size were able to deal with
their problems from effectively from the guidance they received
from the companys insurance advisors, 8 people comprising another
20% were dissatisfied.Graph representing the responses received in
Percentage
Graph 4.5
InterpretationThe chart above clarifies that majority of the
people are benefitted from the guidance which they received from
companys insurance advisors. This is a very strong and positive
point, which also shows the employees commitment to companys
motive. Very less people are not benefitted it could be result of
6is-selling by advisors, which has to taken care by giving proper
training to the advisors.
Table 4.6 Showing whether clients would invest in Reliance Life
Insurance if required in future againOptionsNo. of
responsesPercentage
Definitely2767.5
I think so yes1025
I dont think so yes25
No, definitely not12.5
Total40100
Table 4.6
Analysis
The above table shows that out of 27 respondents comprising
67.5% of the total sample size says they would definitely go for
Reliance if required in future, while 10 comprising 25% feels they
think they will go with Reliance and other 7.5% had negative
thought.
Graph representing the responses received in Percentage
Graph 4.6InterpretationThe chart above shows that most of the
customers would come back to Reliance if they needed another
insurance which clearly shows the level of highly satisfied
customers, and a few of the dissatisfied customers said they would
not like to go for Reliance insurance in future. Loosing on
customers is a setback for the company and it should work on
it.
Table 4.7 Showing need SatisfactionOptionsNo. of
responsesPercentage
Yes2767.5
Very much yes717.5
Not much410
No25
Total40100
Table 4.7AnalysisThe above table shows that out of 2 respondents
comprising 5% of the total sample size couldnt meet their needs of
the insurance policy thy took, while 85% feel they got the right
policy meeting their needs. This is possible due to a wide range of
products.Graph representing the responses received in
Percentage
Graph 4.7InterpretationThe above pie chart shows the responses
of people when asked whether the suggested products met their
needs, a huge chunk of people said yes the insurance plan suggested
to them was helpful to meet their needs.
Table 4.8 Showing factors of choosing Reliance Life
Insurance
OptionsNo. of ResponsesPercentage
Personal interest1230
Friends1127.5
Family410
Advertisements1332.5
Total40100
Table 4.8
Analysis
The above table shows that out of 40 respondents, 12 comprising
30% of the total sample size is with Reliance due to their personal
interest in the company, 37.5% are influenced by family and
friends. Others comprising 32.5% are influenced by
advertisements.
Graph representing the responses received in Percentage
Graph 4.8
Interpretation
The above bar diagram depicts the factors of influence, which
made people to be a part of the huge Reliance family. The responses
show an equal amount of influence from friends, personal interest
and advertisements. Family influence was much lower than the rest
of three.
Table 4.9 Showing Recommendation LevelsOptionsNo. of
ResponsesPercentage
Excellent1230
Very good1742.5
Fair1025
Poor12.5
Total40100
Table 4.9AnalysisThe above table shows that out of 40
respondents, 12 comprising 30% of the total sample size considers
Reliance life insurance as an excellent company. 17 comprising
42.5% think of it as very good company, 10 say just fair and
remaining 1 i.e. 2.5% consider poor.Graph representing the
responses received in Percentage
Graph 4.9InterpretationThe above chart describes customer
responses, when asked to recommend the company to their friends. A
third of them would say excellent, other major chunk would consider
it very good. This shows the trust of people in the company. It is
a very positive thing that companys name hold a great value to its
investors customers.
Table 4.10 Showing areas of ImprovementOptionsNo. of
RespondentsPercentage
Marketing2050
Customer relations922.5
Products1127.5
Total40100
Table 4.10AnalysisThe above table shows that out of 40
respondents, 20 comprising half of the total sample size said
Reliance life insurance need to improve on marketing, 9 said
customer relations and remaining 11 said Reliance Life should work
on its Products.
Graph representing the responses received in Percentage
Graph 4.10InterpretationThe above chart describes customer
responses, when asked about on which area they think Reliance Life
Insurance should improve on, half of the respondents mentioned
marketing as area of improvement. Remaining half people mentioned
customer relations and products as the areas of improvement in
almost equal percentage.
ANNUAL REPORT
(Rs. In 000)
REVENUE ACCOUNT FOR THE YEAR ENDED 31st March, 2008
Fire Insurance Business
ParticularsScheduleCurrent YearPrevious Year
Premium Earned (Net)1384,489239,358
Profit / (loss) on sale/redemption of Investments
(Net)16,4127,756
Interest, Dividend & Rent Gross33,39719,379
TOTAL (A)434,298266,493
Claims Incurred (Net)2267,375178,620
Commission & Brokerage (Net)3(265,650)(391,572)
Operating Expenses related to Insurance
Business4188,190121,755
TOTAL (B)189,915(91,197)
Operating Profit/(Loss) from Fire Business
C= (A) - (B) transferred to Profit & Loss
Account244,383357,690
(Rs. In 000)
REVENUE ACCOUNT FOR THE YEAR ENDED 31st March, 2008
Marine Insurance Business
ParticularsScheduleCurrent YearPrevious Year
Premium Earned (Net)1109,36462,071
Profit / (loss) on sale/redemption of Investments
(Net)3,923949
Interest, Dividend & Rent Gross7,9832,372
TOTAL (A)121,27065,392
Claims Incurred (Net)2128,78458,119
Commission & Brokerage (Net)3(8,562)(2,641)
Operating Expenses related to Insurance
Business459,06431,937
TOTAL (B)179,28687,415
Operating Profit/(Loss) from Marine Business(58,016)(22,023)
C= (A) - (B) transferred to Profit & Loss Account
(Rs. In 000)
REVENUE ACCOUNT FOR THE YEAR ENDED 31st March, 2008
Miscellaneous Insurance Business
ParticularsScheduleCurrent YearPrevious Year
Premium Earned (Net)19,106,4812,141,150
Profit / (loss) on sale/redemption of Investments
(Net)202,63339,797
Interest, Dividend & Rent Gross412,34199,425
Exchange Gain / (loss)(53)518
TOTAL (A)9,721,4022,280,890
Claims Incurred (Net)27,110,6661,495,104
Commission & Brokerage (Net)3(523,411)(400,073)
Operating Expenses related to Insurance
Business45,381,3361,655,532
TOTAL (B)11,968,5912,750,563
Operating Profit/(Loss) from Miscellaneous Business
C= (A) - (B) transferred to Profit & Loss
Account(2,247,189)(469,673)
(Rs. In 000)
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st March, 2008
ParticularsCurrent YearPrevious Year
Operating Profit / (Loss) transferred from
Revenue Account
a. Fire Insurance244,383357,690
b. Marine Insurance(58,016)(22,023)
c. Miscellaneous Insurance(2,247,189)(469,673)
Income from Investments(2,060,822)(134,006)
Interest, Dividend & Rent Gross244,311106,999
Profit / (loss) on sale/redemption of Investments
(Net)120,06042,829
Other Income364,371149,828
Profit on sale of assets28227
Miscellaneous Income70,8538,540
71,1358,567
TOTAL (A)(1,625,316)24,389
Other Expenses
Expenses other than those related to Insurance
Business(3,110)(1,954)
Exchange Gain / (loss)
TOTAL (B)(3,110)(1,954)
Profit Before Tax(1,628,426)22,435
Provision for Taxation
Current Tax-3,000
Deferred Tax-(7,656)
Fringe Benefit Tax25,10010,803
Income Tax earlier year tax1,986
Net Profit After Tax(1,655,512)16,288
Balance of Profit / Loss brought forward from524,040507,752
last year
Balance carried forward to Balance Sheet(1,131,472)524,040
(Rs. In 000)
BALANCE SHEET AS AT 31st March, 2008
ParticularsScheduleCurrent YearPrevious Year
Sources of funds
Share Capital5&5A1,071,5381,030,721
Reserves and Surplus64,998,4671,563,324
Share Application Money--
Fair Value Change Account(98,197)9,769
Total5,971,8082,603,814
Application of funds
Investments713,107,3406,331,468
Fixed Assets8583,211288,873
Deferred Tax8,5358,535
Current Assets
Cash and Bank Balances9724,912181,491
Advances and Other Assets102,979,464553,283
Sub-Total (A)3,704,376734,773
Current Liabilities115,763,7681,783,908
Provisions126,799,3582,975,928
Sub-Total (B)12,563,1264,759,836
Net Current Assets (C = A - B)(8,858,750)(4,025,062)
Miscellaneous Expenditure
(to the extent not written off or adjusted)--
Debit Balance in Profit & Loss Account1,131,472
Total5,971,8082,603,814
Significant Accounting Policies13
Notes on Accounts14
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
Schedule 1
Premium Earned (Net)(Rs. In 000)
ParticularsFinancialPremiumPremium onPremium onNet
PremiumAdjustmentNet
yearfrom directrein-reinsurancefor change inPremium
endingbusinesssurancecededreserve forEarned
writtenaccepted *unexpired
risks *
12345678
FireMar-081,432,70087,6861,073,216447,170(62,681)384,489
Mar-071,458,82418,9021,138,339339,387(100,029)239,358
Marine CargoMar-08316,412-181,423134,988(29,618)105,370
Mar-07165,270-80,52384,747(22,906)61,841
Marine HullMar-0826,036-20,6805,356(1,362)3,994
Mar-0713,279-9,0044,275(4,045)230
Marine TotalMar-08342,448-202,103140,344(30,980)109,364
Mar-07178,549-89,52789,022(26,951)62,071
MotorMar-0812,673,6911,475,9074,241,3779,908,221(2,742,253)7,165,968
Mar-074,555,068-989,5783,565,490(2,073,683)1,491,806
EmployersMar-0885,885-42,76343,122(8,038)35,084
Liability
Mar-0740,188-13,30126,887(6,541)20,346
Public LiabilityMar-0855,137-43,20911,9285,51717,445
Mar-0760,430-29,32531,105(13,992)17,112
EngineeringMar-081,035,36611,680791,281255,765(52,562)203,203
Mar-07936,0222,951762,035176,938(64,094)112,844
AviationMar-0874,110-72,6601,450(404)1,046
Mar-0771,942-71,355587205792
PersonalMar-08403,522-273,565129,957(49,479)80,478
AccidentMar-07154,903-124,89830,005(10,702)19,302
HealthMar-082,756,198-561,0722,195,126(833,456)1,361,670
Mar-07671,768-136,233535,535(233,794)301,741
Other Misc.Mar-08605,114-363,740241,374213241,587
Mar-07994,581-746,395248,186(70,980)177,206
Misc
TotalMar-0817,689,0241,487,5876,389,66712,786,943(3,680,463)9,106,481
Mar-077,484,9022,9512,873,1204,614,733(2,473,581)2,141,150
Total
MAR0819,464,1721,575,2737,664,98713,374,457(3,774,124)9,600,334
Total
MAR079,122,27521,8534,100,9865,043,142(2,600,561)2,442,579
* - Includes TP Pool Transactions (Refer point no. 13 of notes
to accounts, schedule 13)
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
Schedule 2
Claims Incurred (Net)(Rs. In 000)
ParticularsFinancialClaims PaidClaims PaidClaimsNet
ClaimsOutstandingOutstandingNet Claims
yearfrom directonRecovered onPaid (3+4-5)Claims onClaims
onIncurred
endingbusinessreinsurancereinsurance31-03-2008
*01-04-2007(6+7-8)
writtenAcceptedceded
123456789
FireMar-08650,08689477,818172,357227,794132,776267,375
Mar-07355,187209206,724148,672125,19995,251178,620
Marine CargoMar-08250,555-128,552122,00341,59235,515128,080
Mar-07110,400-56,48953,91135,51532,28157,145
Marine HullMar-0813,557-12,7587991,0041,099704
Mar-078-171,099132975
Marine TotalMar-08264,112-141,310122,80242,59636,614128,784
Mar-07110,409-56,49053,91936,61432,41358,120
MotorMar-083,632,951-747,9962,884,9552,961,359544,9805,301,334
Mar-07564,964-118,739446,225544,98076,323914,882
18Employers
LiabilityMar-0813,967-2,84011,1277,0824,98013,229
Mar-079,654-2,0807,5744,9803,5958,959
Public LiabilityMar-0853-31227124,725(3,991)
Mar-07840-3514894,7253,1612,053
EngineeringMar-08448,36480393,36355,08150,25640,01165,327
Mar-0783,758254,90928,85140,01110,74558,117
AviationMar-0822,417-22,026391200300291
Mar-07307-5924830048266
Personal AccidentMar-08207,269-149,54457,72524,88854282,071
Mar-0764,008-49,75214,25654224,586(9,788)
HealthMar-081,664,329-330,7431,333,587247,89954,5611,526,925
Mar-07379,085-76,198302,88754,56216,459340,990
Other Misc.Mar-08297,080-151,723145,35761,69181,569125,479
Mar-07256,145-149,429106,71689,14616,037179,825
Misc
TotalMar-086,286,431801,798,2664,488,2453,354,087731,6667,110,666
Mar-071,358,7612451,517907,246739,246151,3881,495,104
Total
MAR087,200,6291692,417,3944,783,4043,624,478901,0577,506,825
Total
MAR071,824,356211714,7311,109,836901,059279,0521,731,843
* - Includes TP Pool Transactions (Refer point no. 13 of notes
to accounts, schedule13)
Annual Report 2007-2008
Reliance General Insurance
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
Schedule 3
Commission (Net)(Rs. In 000)
ParticularsFinancialCommission paidBrokerage
paidCommissionCommissionNet
yearon directon directpaid onreceived fromcommission
endingbusinessbusinessreinsurancereinsurance(3+4+5-6)
writtenacceptedceded
1234567
FireMar-089,63073,8304,814353,924(265,650)
Mar-079,83335,977-437,382(391,572)
Marine CargoMar-084,49118,730-30,233(7,012)
Mar-074,9359,186-15,281(1,160)
Marine HullMar-0842,318-3,872(1,550)
Mar-074466-1,951(1,481)
Marine TotalMar-084,49521,048-34,105(8,562)
Mar-074,9399,652-17,232(2,641)
MotorMar-0831,08681,514-422,354(309,754)
Mar-0725,22870,566-182,527(86,733)
Employers LiabilityMar-081,0993,325-4,096328
Mar-076921,477-2,532(363)
Public LiabilityMar-081493,216-3,459(94)
Mar-071,4204,846-4,9241,342
EngineeringMar-082,58644,5251,308234,031(185,611)
Mar-073,81430,806-239,447(204,827)
AviationMar-08-696-2,274(1,578)
Mar-07-206-3,980(3,774)
Personal AccidentMar-082,38422,642-82,170(57,144)
Mar-071,70613,125-38,049(23,218)
HealthMar-0828,315148,336-137,82338,828
Mar-076,66941,581-35,79012,460
Other Misc.Mar-085,51727,526-41,428(8,385)
Mar-079,35820,155-124,471(94,958)
Misc TotalMar-0871,136331,7801,308927,635(523,411)
Mar-0748,886182,761-631,720(400,073)
Total MAR0885,261426,6586,1221,315,663(797,622)
Total MAR0763,658228,390-1,086,334(794,286)
19
Annual Report 2007-2008
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
(Rs. In 000)
ParticularsCurrent YearPrevious Year
Schedule-4
Operating Expenses related to insurance business
Employees remuneration & welfare
benefits1,288,308468,615
Companys contribution to Provident fund and
others78,81527,027
Staff Welfare101,10332,785
Travel, conveyance and vehicle running expenses169,43575,588
Rents, rates & taxes238,53452,973
Repairs111,05720,415
Printing & Stationery296,498106,340
Communication expenses206,30127,804
Postage expenses308,08293,637
Legal & professional charges309,39474,608
Directors Sitting fees860700
Auditors remuneration
a. Audit fees1,9001,200
b. Tax Audit fees300225
c. Certification Fees502,250-1,425
Advertisement and Publicity215,07448,379
Interest and Bank Charges38,2294,323
Entertainment expenses8,9814,685
Office maintenance expenses82,02813,017
Office management expenses1,752,653671,243
Recruitment & Training expenses57,73423,993
Depreciation187,67045,789
Subscriptions and membership fees3,8675,415
Coinsurance Expenses (net)5,2312,245
Loss minimisation expenses--
Miscellaneous expenses169,59610,172
TOTAL5,631,7001,811,178
Allocation:
Fire Revenue Account188,190121,755
Marine Revenue Account59,06431,937
Miscellaneous Revenue Account5,381,3361,655,532
Expenses not relating to Insurance Business3,1101,954
taken in Profit & Loss A/c
TOTAL5,631,7001,811,178
Schedule-5Current YearPrevious Year
Share Capital
Authorised Share Capital
20,00,00,000 Equity Shares of Rs.10 each2,000,0002,000,000
Issued, Subscribed and Paid-up Share Capital
10,71,53,759 Equity Shares of Rs.10 each fully
paid1,071,5381,030,721
Schedule-5ACurrent YearPrevious Year
Pattern of Share Holding (As certified by the Management)
ShareholderNo. of Shares% of HoldingNo. of Shares% of
Holding
Promoters- Indian
Holding company- Indian107,153,759100%103,072,127100%
Total107,153,759100%103,072,127100%
20
Reliance General Insurance
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
Schedule-6Current YearPrevious Year
Reserves and Surplus
Security Premium4,998,4671,039,284
Surplus in Profit and Loss Account-524,040
Total4,998,4671,563,324
Schedule-7Current YearPrevious Year
Investments
Long Term Investments
Government securities and Government guaranteed
bonds4,440,9541,900,986
including Treasury Bills
Debentures/ Bonds2,345,196705,843
Investments in Infrastructure and Social
Sector3,462,862715,538
Other than Approved Investments149,847
Equity shares1,004,25611,403,115441,0973,763,464
Short Term Investments
Government securities and Government guaranteed bonds106,927
including Treasury Bills
Debentures/ Bonds241,1521,844,173
Investments in Infrastructure and Social
Sector250,007245,059
Mutual Funds1,202,500321,717
Other than Approved
Investments10,5661,704,22550,1282,568,004
Total13,107,3406,331,468
Notes :
1. The market value of all the Investments as at 31st March,
2008 is Rs. 12,995,129 thousands (Previous year Rs. 6,220,350
thousands)
2. Government Securities includes Rs. 106,550 thousands
(Previous Year Rs. 107,310 thousands) deposit under Section 7 of
the Insurance Act, 1938.
3. All the above investments are performing assets.
21
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
Schedule - 8 Fixed Assets as at 31st March
(Rs. In 000)
DescriptionGross BlockDepreciationNet Block
As atAdditionsDeductionsAs atAs atFor the yearDeductionsAs atAs
atAs at
01-04-0731-03-0801-04-0731-03-0831-03-0831-03-07
Furniture &
Fittings82,73034,907-117,63711,42433,569-44,99372,64471,306
Leashold
Improvments16,9541,106-18,0601,0625,588-6,65011,41015,892
Information
Technology111,982135,783-247,76534,73362,983-97,716150,04977,249
Equipment
Intangible
Asset15,977176,759-192,73610,98753,520-64,507128,2304,990
(Computer Software)
22Vehicles28,4625,6543,25930,85710,5934,8801,71913,75417,10317,869
Office
Equipment57,920160,207468217,6599,16826,76331635,615182,04348,752
Plant & Machinery7,0047,004-367-3676,637-
Capital WIP52,81537,72015,095----15,09552,815
Total366,840521,42041,447846,81377,967187,6702,035263,602583,211288,873
Previous
Year66,890300,9841,034366,84032,82645,79064977,967288,87334,064
Annual Report 2007-2008
Reliance General Insurance
(Rs. In 000)
Schedule-9Current YearPrevious Year
Cash and Bank Balances
Cash (including cheques, drafts and stamps on
hand)12,71513,178
Bank Balances
(a) Short Term Deposit Accounts--
(b) Current Accounts712,197712,197168,313168,313
Total724,912181,491
(Rs. In 000)
Schedule-10Current YearPrevious Year
Advances and Other Assets
Advances
Prepayments34,94044,383
Advance tax paid and taxes deducted at source89,05790,599
(Net of provision for taxation)
Rental Deposits58,33951,657
Advances to Staff2,1742,325
Unutilised Service Tax Credit65,8033,047
Other Advances244,265494,57860,059252,070
Other Assets
Income accrued on investments331,104131,617
Outstanding Premium-2,931
Agents Balances
Due from other entities carrying on insurance
business2,121,640140,015
ERF Investment in Fixed Deposit with
Banks32,1422,484,88626,650301,213
Total2,979,464553,283
(Rs. In 000)
Schedule-11Current YearPrevious Year
Current Liabilities
Agents Balances28,6383,764
Balances due to other insurance companies409,929492,219
Premium received in Advance45,99139,395
Unearned Commission-0
Sundry creditors333,59580,709
Claims Outstanding3,624,478901,397
Environmental Relief Fund Payable32,13926,523
Bank Overdraft1,288,998239,901
Total5,763,7681,783,908
(Rs. In 000)
Schedule-12Current YearPrevious Year
Provisions
Reserve for Unexpired Risk6,722,9542,948,830
Provision for Leave Encashment76,40427,098
--
Total6,799,3582,975,928
23
Annual Report 2007-2008
Registration No. and Date of Registration with the IRDA : Regn.
No. 103 dated 23.10.2000
RECEIPTS AND PAYMENTS ACCOUNT FOR THE PERIOD ENDED 31st March,
2008
(Rs. In 000)
ParticularsCurrent YearPrevious Year
Cash and cash equivalents at the beginning of the
year(58,411)108,385
Cash flows from operating activities
Direct Premiums received19,470,7679,149,970
Payment to other insurance companies net of claims
and(4,576,462)(2,087,245)
commission
Direct Claims Paid(7,200,632)(1,824,356)
Direct Commission / Brokerage Payments(487,046)(291,944)
Expenses of Management(4,957,098)(1,787,598)
Advances, Deposits, Staff loans given(244,334)(97,593)
Income tax paid(25,220)(40,706)
Wealth tax paid(166)(48)
Other Receipts/payments69,017443
Net Cash flow2,048,8273,020,923
Cash flows from investing activities
Purchase of investments (Net)(74,054,635)(7,088,924)
Sale of invetsment (including gain/loss)67,485,4696,667,962
Sale of Fixed Assets ( including gain/loss)1,8571,060
Purchase of fixed Assets(485,735)(300,983)
sale of fixed Assets (including gain/loss)
Interest, Dividends received498,544143,320
Net Cash flow(6,554,501)(577,565)
Cash flows from financing activities
Capital infusion3,999,9991,050,000
Cash and cash equivalents at the end of the year
including(564,086)(58,411)
Bank Overdraft
CONCLUSION
Majority think that insurance is important, at the same time
there are very less people who dont know the significance of
insurance.
A tenth of the people consider the information received from
company advisors as excellent, majority grade it good. Whereas a
very minor population consider advisor service as poor.
It was found that a fair population would definitely recommend
Reliance Life Insurance to friend in need. Half of the people said
they would also probably do the same. Very minute population had
negative response.
Half of the people in Reliance family are very satisfied in
terms quantity service they received before and after the sales of
insurance product. A third is mostly satisfied, whereas a fifth of
population is not satisfied with quantity service.
Findings show that almost all people could deal with their
problems effectively after the insurance guidance. A fifth of
people said it wasnt helpful for them and they couldnt tackle the
problems as they thought.
Findings show that almost all people would choose Reliance if
they had to take another insurance.
It was found that almost all people were satisfied with the
insurance product while a tenth of them think the insurance plan
couldnt help exactly the way they thought/advisor told.
It was found that people had equal influence from friends,
Personal Interest & advertisements.
The study shows that expect a fourth of population others
consider Reliance a good company.
Half of the people say marketing as main area to be improved.
Other half consider customer relations and product development
equally.
BIBLIOGRAPHY
WWW.GOOGLE.COM http://www.reliancelife.com
http://www.slideshare.net WIKIPEDIA
SHREERAJ HARIHARAN ROLL NO 36M.COM PART- ISEMESTER- II
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