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SUMMER TRAINING PROJECT REPORT

ON

RECRUITMENT & SELECTION PROCESS IN RELIANCE LIFE INSURANCE

Submitted By

KAVITA CO!"UR#

I$ P%ti%' Fu'(i''me$t )( t*e Re+uieme$t O( PG"M "e,ee )( I$-titute )( C)m.ute

S/ie$/e & Te/*$)'),y 0ICST1 S*e.%2 3 V%%$%-i3 A..)4ed by AICTE3 Ne5 "e'*i

Se--i)$ 67891678:

E$)'me$t N); R)'' N); 121709

INSTITUTE OF COMPUTER SCIENCE & TECNOLOG#

0ICST2 SEPA3 VARANASI

SEPA CAMPUS3 NIBIA BACCAON3 VARANASI

0APPROVE" B# AICTE NE! "ELI2

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CERTIFICATE

This is to certify that Ms. KAVITA CO!"UR# has completed her summer training

project report entitled, RECRUITMENT & SELECTION PROCESS IN RELIANCE LIFE

INSURANCE under my superision and guidance in partial fulfillment of the re!uirement of

"#$M degree of %&'T%T(T) *+ *M"(T)- '%)&) T)/&**# %'T3. The

summer training project report contains the o4serations made 4y student herself.

The summer training project report su4mitted 4y Ms. KAVITA CO!"UR# is of the

standard e5pected of an "#$M student of %'T6'/)", 8-&'%.

'ignature of the 'uperisor

$esignation

$ate

+or:arded 4y

$irector, %'T3

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PREFACE

ll students learn theoretical su4jects in their classroom, 4ut as :e are the management students,

apart from theoretical studies :e need to get a deeper insight into the practical aspects of those

theories 4y :or;ing as a part of organi

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ACKNO!LE"GEMENT

This project has 4een prepared as a part of an internship re!uired during the completion of

"#$M programme at %&'T%T(T) *+ *M"(T)- '%)&) T)/&**# %'T3.

8-&'% (."3.

% :ould li;e to than; my project guide M; RAJEEV SING , S; Ge$e%' M%$%,e1 R

RELIANCE LIFE INSURANCE3 for continuous guiding me through my summer internship

and research project. /is encouragement, time and effort are greatly appreciated.

% :ould also li;e to than; M; MA#ANK VERMA3 M%$%,e1R, for supporting and

superising me during this project and proiding me an opportunity to learn outside the class

room. %t :as a truly :onderful learning e5perience.

*nce again my gratitude to the RELIANCE LIFE INSURANCEfor their ;ind co6operation.

ast 4ut not the least, % :ould li;e to e5press my gratitude to my parents :ho financed this

project and gae their continuous motiation and ;ind support to me and also my than;s to those

:ho :ere directly or indirectly responsi4le for the successful completion of the project.

$T) 1?>0@>201A B8%T /*C$/(-

") $elhi -*. &o. 121709

ii

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CHAPTER- 1INDUSTRY PROFILE

1

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BRIEF INTRO"UCTION OF IN"USTR#

0Fi,; 81% SRI "IRUBAI AMBANI2

FOUN"ER

+e: men in history hae made as dramatic a contri4ution to their countryJs economic fortunes as

did the founder of -eliance, 'h. $hiru4hai / m4ani. +e:er still hae left 4ehind a legacy that

is more enduring and timeless.

s :ith all great pioneers, there is more than one uni!ue :ay of descri4ing the true genius of

$hiru4hai The corporate isionary, the unmatched strategist, the proud patriot, the leader of

men, the architect of %ndiaJs capital mar;ets, the champion of shareholder interest.

=ut the role $hiru4hai cherished most :as perhaps that of %ndiaJs greatest :ealth creator. %n

one lifetime, he 4uilt, starting from the proer4ial scratch, %ndiaJs largest priate sector

enterprise.

Chen $hiru4hai em4ar;ed on his first 4usiness enture, he had a seed capital of 4arely ('I

A00 around -s 1G,0003. *er the ne5t three and a half decades, he conerted this fledgling

enterprise into a -s ?0,000 crore colossusKan achieement :hich earned -eliance a place

on the glo4al +ortune H00 list, the first eer %ndian priate company to do so.

2

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$hiru4hai is :idely regarded as the father of %ndiaJs capital mar;ets. %n 1977, :hen -eliance

Te5tile %ndustries imited first :ent pu4lic, the %ndian stoc; mar;et :as a place patronised

4y a small clu4 of elite inestors :hich da44led in a handful of stoc;s.

(ndaunted, $hiru4hai managed to conince a large num4er of first6time retail inestors toparticipate in the unfolding -eliance story and put their hard6earned money in the -eliance

Te5tile %"*, promising them, in e5change for their trust, su4stantial return on their

inestments. %t :as to 4e the start of one of great stories of mutual respect and reciprocal gain

in the %ndian mar;ets.

(nder $hiru4haiJs e5traordinary ision and leadership, -eliance scripted one of the greatest

gro:th stories in corporate history any:here in the :orld, and :ent on to 4ecome %ndiaJs

largest priate sector enterprise.

Through out this ama

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t the age of 17 :ent to den no: part of emen3 and :or;ed for . =esse o. td.,

the sole selling distri4utor of 'hell products.

%n the year 19H@ returned to Mum4ai and started his first company, -eliance ommercial

orporation, a commodity trading and e5port house.

%n the year 19??, as a first step in -elianceNs highly successful strategy of 4ac;:ard

integration, he started the te5tile mill in &aroda, hmeda4ad.

%n the year 197H, a technical team from the Corld =an; certified that the -eliance te5tile

plant :as Oe5cellent 4y deeloped country standards.O

%n the year 1977, the company :ent pu4lic. redited :ith a num4er of financial

innoations in the %ndian capital mar;ets. Today, the -eliance #roup has one of the

largest family of shareholders in the :orld. Cith an inestment of oer -s A?,000 crore

('I 9 4illion3 in petroleum refining, petrochemicals, po:er generation,

telecommunication serices and a port terminal in a three6year time frame, has steered the

-eliance #roup to its current status as %ndiaNs leading te5tiles6petroleum6petrochemicals6

po:er6telecomplayer.

ACIEVEMENTS

8oted %ndiaNs NTop =usinessmanN in the N=est of %ndiaN poll conducted 4y Fee &e:s,

ugust 200A.

"etrotech 'ociety conferred posthumously the Nifetime chieement :ardN for his

outstanding contri4ution to $o:nstream "etroleum %ndustry in %ndia, Eanuary 200A.

-ated as one of N%ndiaNs Most dmired )*sN for the fourth consecutie year in

theBusiness Barons 6 Taylor &elson 'ofres 6 Mode 'urey, Euly 2002.

onferred the Nifetime chieement :ardN 4y %ndia /-$ ongress, +e4ruary 2002.

onferred NThe )conomic Times :ard for orporate )5cellence for ifetime

chieementN, ugust 2001.

+elicitated 4y the Municipal orporation of #reater Mum4ai :ith a citation at a ciic

reception, $ecem4er 2000.

4

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onferred the NMan of the enturyN a:ard 4y hemtech +oundation and hemical

)ngineering Corld in recognition of his outstanding contri4ution to the gro:th and

deelopment of the chemical industry in %ndia, &oem4er 2000.

onferred the N%ndian )ntrepreneur of the 20th enturyN a:ard 4y +%% +ederation of

%ndian ham4ers of ommerce and %ndustries3, for his meticulous scripting of one of the

most remar;a4le stories of 4usiness endeaour of the 20th century, March 2000.

Thrice in the years 2000, 199@ and 199?3 nominated as one of the N"o:er H0 6 the most

po:erful people in siaN 4yAsiaweek maga

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March, 2000 %ndian )ntrepreneur of the 20th enturyJ a:ard 4y +%%, for his

meticulous scripting of one of the most remar;a4le stories of 4usiness endeaor of the

20th entury.

&oem4er, 2000 PMan of the enturyJ a:ard 4y hemtech +oundation and hemical

)ngineering Corld for his contri4ution to the gro:th and deelopment of the %ndian

chemical industry.

ugust, 2001 The )conomic Times :ard for orporate )5cellence and ifetime

chieement.

+e4ruary, 2002 onferred the ifetime chieement :ard 4y %ndia /-$ ongress.

FAMIL# TREE OF AMBANIDS

6

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0Fi,; 81b "IRUBAI AMBANI AN" FAMIL# MEMBERS2

"IRUBAI AMBANI 1 TE STOCK MARKET KING

0Fi,; 81/ TE AMBANI MAGIC2

TE AMBANI MAGIC

7

http://www.relianceinsider.com/2008/06/stock-market-king/http://www.relianceinsider.com/2008/06/stock-market-king/

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-eliance %ndustries :as listed in 1977 in one of the largest pu4lic stoc; offerings of its

time and its annual shareholdersJ meetings :ere so :ell attended they had to 4e held in a

foot4all stadium and $hiru4hai held his shareholders spell4ound, paying high diidends

and 4onuses at a time :hen e!uities :ere seen as a lo:6return, ris;y inestment.

This made $hiru4hai m4ani a hero to shareholders. *riginal inestors in the 1977

initial pu4lic offering hae earned a compounded annual rate of return of GA per cent.

!AT IS INSURANCE

%n la:and economics, insurance is a form of ris; managementprimarily used to hedgeagainst

the ris;of a contingent, uncertainloss. %nsurance is defined as the e!uita4le transfer of the ris; of

a loss, from one entity to another, in e5change for payment. n insurer is a company selling the

insurance an insured or policyholder is the person or entity 4uying the insurance policy. The

insurance rate is a factor used to determine the amount to 4e charged for a certain amount of

insurance coerage, called the premium. -is; management, the practice of appraising and

controlling ris;, has eoled as a discrete field of study and practice. The transaction inoles

the insured assuming a guaranteed and ;no:n relatiely small loss in the form of payment to the

insurer in e5change for the insurerNs promise to compensate indemnify3 the insured in the case

of a large, possi4ly deastating loss. The insured receies a contractcalled the insurance policy:hich details the conditions and circumstances under :hich the insured :ill 4e compensated.

T#PES OF INSURANCE

AUTO INSURANCE

0Fi,; 81d A !RECKE" VEICLE2

8

http://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Uncertaintyhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Decision_modelhttp://en.wikipedia.org/wiki/Decision_modelhttp://en.wikipedia.org/wiki/Indemnifyhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Insurance_policyhttp://en.wikipedia.org/wiki/File:2008-07-23_Wrecked_car_in_Durham_2.jpghttp://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Uncertaintyhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Decision_modelhttp://en.wikipedia.org/wiki/Indemnifyhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Insurance_policy

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uto insurance protects you against financial loss if you hae an accident. %t is a contract

4et:een the insured and the insurance company. ou agree to pay the premium and the

insurance company agrees to pay losses as defined in the policy. uto insurance proides

property, lia4ility and medical coerage

1. "roperty coerage pays for damage to or theft of the car.

2. ia4ility coerage pays for the legal responsi4ility to others for 4odily injury or property

damage.

A. Medical coerage pays for the cost of treating injuries, reha4ilitation and sometimes lost

:ages and funeral e5penses.

n auto insurance policy comprises si5 ;inds of coerage. Most countries re!uire you to 4uysome, 4ut not all, of these coerages. %f youNre financing a car, the lender may also hae

re!uirements. Most auto policies are for si5 months to a year.%n the (nited 'tates, the insurance

company should notify you 4y mail :hen itJs time to rene: the policy and to pay the premium.

OME INSURANCE

/ome insurance proides compensation for damage or destruction of a home from disasters. %n

some geographical areas, the standard insurances e5clude certain types of disasters, such as floodand earth!ua;es, that re!uire additional coerage. Maintenance6related pro4lems are the

homeo:nersN responsi4ility. The policy may include inentory, or this can 4e 4ought as a

separate policy, especially for people :ho rent housing. %n some countries, insurers offer a

pac;age :hich may include lia4ility and legal responsi4ility for injuries and property damage

caused 4y mem4ers of the household, including pets.

CASUALT#

asualty insurance insures against accidents, not necessarily tied to any specific property.

rime insuranceis a form of casualty insurance that coers the policyholder against

losses arising from the criminal actsof third parties. +or e5ample, a company can o4tain

crime insurance to coer losses arising from theftor em4e

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"olitical ris; insuranceis a form of casualty insurance that can 4e ta;en out 4y 4usinesses

:ith operations in countries in :hich there is a ris; that reolution or other political

conditions :ill result in a loss.

LIFEINSURANCE

ife insurance proides a monetary 4enefit to a decedentNs family or other designated

4eneficiary, and may specifically proide for income to an insured personNs family, 4urial,

funeraland other final e5penses. ife insurance policies often allo: the option of haing the

proceeds paid to the 4eneficiary either in a lump sum cash payment or an annuity.nnuities

proide a stream of payments and are generally classified as insurance 4ecause they are issued

4y insurance companies and regulated as insurance and re!uire the same ;inds of actuarial and

inestment management e5pertise that life insurance re!uires. nnuities andpensionsthat pay a

4enefit for life are sometimes regarded as insurance against the possi4ility that a retiree :ill

outlie his or her financial resources. %n that sense, they are the complement of life insurance

and, from an under:riting perspectie, are the mirror image of life insurance.

ertain life insurance contracts accumulate cashalues, :hich may 4e ta;en 4y the insured if the

policy is surrendered or :hich may 4e 4orro:ed against. 'ome policies, such as annuities and

endo:ment policies, are financial instruments to accumulate or li!uidate :ealth :hen it is

needed.%n many countries, such as the (.'. and the (B, the ta5 la:proides that the interest on

this cash alue is not ta5a4le under certain circumstances. This leads to :idespread use of life

insurance as a ta56efficient method of saingas :ell as protection in the eent of early death.%n

(.'., the ta5 on interest income on life insurance policies and annuities is generally deferred.

/o:eer, in some cases the 4enefit deried from ta5 deferral may 4e offset 4y a lo: return. This

depends upon the insuring company, the type of policy and other aria4les mortality, mar;et

return, etc.3. Moreoer, other income ta5 saing ehicles e.g., %-s, G01;3 plans, -oth %-s3

may 4e 4etter alternaties for alue accumulation.

PROPERT#

10

http://en.wikipedia.org/wiki/Political_risk_insurancehttp://en.wikipedia.org/wiki/Countryhttp://en.wikipedia.org/wiki/Revolutionhttp://en.wikipedia.org/wiki/Politicshttp://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Burialhttp://en.wikipedia.org/wiki/Funeralhttp://en.wikipedia.org/wiki/Annuity_(financial_contracts)http://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Endowment_policyhttp://en.wikipedia.org/wiki/Liquidationhttp://en.wikipedia.org/wiki/Wealthhttp://en.wikipedia.org/wiki/Tax_lawhttp://en.wikipedia.org/wiki/Tax_lawhttp://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Political_risk_insurancehttp://en.wikipedia.org/wiki/Countryhttp://en.wikipedia.org/wiki/Revolutionhttp://en.wikipedia.org/wiki/Politicshttp://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Burialhttp://en.wikipedia.org/wiki/Funeralhttp://en.wikipedia.org/wiki/Annuity_(financial_contracts)http://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Endowment_policyhttp://en.wikipedia.org/wiki/Liquidationhttp://en.wikipedia.org/wiki/Wealthhttp://en.wikipedia.org/wiki/Tax_lawhttp://en.wikipedia.org/wiki/Saving

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0Fi,; 81e A "AMAGE" OUSE2

This tornadodamage to an %llinoishome :ould 4e considered an Oct of #odO for insurance

purposes."roperty insurance proides protection against ris;s to property, such as fire, theftor

:eather damage. This includes speciali

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=uilderNs ris; insuranceinsures against the ris; of physical loss or damage to property

during construction. =uilderNs ris; insurance is typically :ritten on an Oall ris;O 4asis

coering damage due to any cause. =uilderNs ris; insurance is coerage that protects a

personNs or organior e!uipment 4eing

used in the construction or renoation of a 4uilding or structure should those items

sustain physical loss or damage from a coered cause.

rop insurance O+armers use crop insurance to reduce or manage arious ris;s

associated :ith gro:ing crops. 'uch ris;s include crop loss or damage caused 4y

:eather, hail, drought, frost damage, insects, or disease, for instance.O

)arth!ua;e insuranceis a form of property insurance that pays the policyholder in the

eent of anearth!ua;e that causes damage to the property. Most ordinary homeo:ners

insurancepolicies do not coer earth!ua;e damage. Most earth!ua;e insurance policies

feature a high deducti4le. -ates depend on location and the pro4a4ility of an earth!ua;e,

as :ell as the construction of the home.

+lood insuranceprotects against property loss due to flooding. Many insurers in the (.'.

do not proide flood insurance in some portions of the country. %n response to this, the

federal goernment created the&ational +lood %nsurance "rogram:hich seres as the

insurer of last resort.

/ome insurance, also commonly called ha

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8olcano insurance is an insurance that coers olcano damage in /a:aii.

ISTOR# OF INSURANCE

%n some sense :e can say that insurance appears simultaneously :ith the appearance of human

society. Ce ;no: of t:o types of economies in human societies money economies :ith

mar;ets, money, financial instruments and so on3 and non6money or natural economies :ithout

money, mar;ets, financial instruments and so on3. The second type is a more ancient form than

the first. %n such an economy and community, :e can see insurance in the form of people helping

each other. +or e5ample, if a house 4urns do:n, the mem4ers of the community help 4uild a ne:

one. 'hould the same thing happen to oneNs neigh4our, the other neigh4ours must help.

*ther:ise, neigh4ours :ill not receie help in the future. This type of insurance has suried to

the present day in some countries :here modern money economy :ith its financial instruments

is not :idespread.

Turning to insurance in the modern sense i.e., insurance in a modern money economy, in :hich

insurance is part of the financial sphere3, early methods of transferring or distri4uting ris; :ere

practised 4y hinese and =a4ylonian traders as long ago as the Ard and 2nd millennia =,

respectiely. hinese merchants traelling treacherous rier rapids :ould redistri4ute their :ares

across many essels to limit the loss due to any single esselNs capsi

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The purpose of registering :as that :heneer the person :ho presented the gift registered 4y the

court :as in trou4le, the monarch and the court :ould help him. Eahe

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ship o:ners, merchants, and shipsJ captains, and there4y a relia4le source of the latest shipping

ne:s. %t 4ecame the meeting place for parties :ishing to insure cargoes and ships, and those

:illing to under:rite such entures. Today, loydNs of ondonremains the leading mar;et note

that it is not an insurance company3 for marine and other specialist types of insurance, 4ut it

:or;s rather differently than the more familiar ;inds of insurance.

%nsurance as :e ;no: it today can 4e traced to the #reat +ire of ondon, :hich in 1???

deoured more than 1A,000 houses. The deastating effects of the fire conerted the

deelopment of insurance Ofrom a matter of conenience into one of urgency, a change of

opinion reflected in 'ir hristopher CrenNs inclusion of a site for Nthe %nsurance *fficeN in his

ne: plan for ondon in 1??7. num4er of attempted fire insurance schemes came to nothing,

4ut in 1?@1 &icholas =ar4on, and eleen associates, esta4lished )nglandNs first fire insurancecompany, the N%nsurance *ffice for /ousesN, at the 4ac; of the -oyal )5change. %nitially, H,000

homes :ere insured 4y =ar4onNs %nsurance *ffice.

The first insurance company in the(nited 'tatesunder:rote fire insurance and :as formed in

harles To:n modern6day harleston3, 'outh arolina, in 17A2. =enjamin +ran;linhelped to

populari

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ife insurance is a partial compensation for the pro4lems caused 4y untimely death. %t :or;s in

the follo:ing ha

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indiiduals. %t is estimated that oer the ne5t ten years %ndia :ould re!uire inestments of the

order of one trillion (' dollars.

ISTORICAL PERSPECTIVE

The history of life insurance in %ndia dates 4ac; to 1@1@ :hen it :as conceied as a means to

proide for )nglish Cido:s. %nterestingly in those days a higher premium :as charged for

%ndian lies than the non 6 %ndian lies, as %ndian lies :ere considered more ris;y to coer. The

=om4ay Mutual ife %nsurance 'ociety started its 4usiness in 1@70. %t :as the first company to

charge the same premium for 4oth %ndian and non6%ndian lies.

The *riental ssurance ompany :as esta4lished in 1@@0. The #eneral insurance 4usiness in

%ndia, on the other hand, can trace its roots to Triton %nsurance ompany imited, the first

general insurance company esta4lished in the year 1@H0 in alcutta 4y the =ritish. Till the end of

the nineteenth century insurance 4usiness :as almost entirely in the hands of oerseas

companies. %nsurance regulation formally 4egan in %ndia :ith the passing of the ife %nsurance

ompanies ct of 1912 and the "roident +und ct of 1912. 'eeral frauds during the 1920Ns

and 19A0Ns sullied insurance 4usiness in %ndia. =y 19A@ there :ere 17? insurance companies.

The first comprehensie legislation :as introduced :ith the %nsurance ct of 19A@ that proided

strict 'tate ontrol oer the insurance 4usiness. The insurance 4usiness gre: at a faster paceafter independence. %ndian companies strengthened their hold on this 4usiness 4ut despite the

gro:th that :as :itnessed, insurance remained an ur4an phenomenon.

The #oernment of %ndia in 19H?, 4rought together oer 2G0 priate life insurers and proident

societies under one nationali

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ssurance ompany, *riental %nsurance ompany and (nited %ndia %nsurance ompany. These

:ere su4sidiaries of the #eneral %nsurance ompany #%3.

KE# MILESTONES

886The %ndian ife ssurance ompanies ct enacted as the first statute to regulate the life

insurance 4usiness.

86 The %ndian %nsurance ompanies ct enacted to ena4le the goernment to collect

statistical information a4out 4oth life and non6life insurance 4usinesses.

89)arlier legislation consolidated and amended 4y the %nsurance ct :ith the o4jectie of

protecting the interests of the insuring pu4lic.

8>?2GH %ndian and foreign insurers along :ith proident societies :ere ta;en oer 4y the

central goernment and nationali

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LIFE INSURANCE

ife insurance is a form of insurance that pays monetary proceeds upon the death of the insured

coered in the policy. )ssentially, a life insurance policy is a contract 4et:een the named insured

and the insurance company :here in the insurance company agrees to pay an agreed upon some

of money to the insuredJs named 4eneficiary so long as the insuredJs premiums are current.

Cith a large population and the untapped mar;et area of this population insurance happens to 4e

a ery opportunity in %ndia. Today it stands as a 4usiness gro:ing at the rate of 1H620R annually.

Together :ith 4an;ing serices, it adds a4out 7R to country #$".

%n spite of all this gro:th statistics of the penetration of the insurance in the country is ery poor.

&early @0R of %ndian populations are :ithout life insurance coer and the health insurance. This

is an indicator that gro:th potential for the insurance sector is immense in %ndia.

%t :as due to this immense gro:th that the regulations :ere introduced in the insurance sector

and in continuation Malhotra ommittee :as constituted 4y the goernment in 199A to

e5amine the arious aspects of the industry. The ;ey element of the reform process :as

participation of oerseas insurance companies :ith 2?R capital.

reating a more competitie financial system suita4le for the re!uirements of the economy :as

the main idea 4ehind this reform. 'ince then the insurance industry has gone through many

changes. The li4erali

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%nsurance is the method of spreading and transfer of ris;s. The fortunate many :ho are e5posed

to some or similar ris; shares loss of the unfortunate. %nsurance does not protect the assets 4ut

only compensates the economy or financial loss.

%n insurance the insured ma;es payment called "remiums to an insurer, and in return is a4le to

claim a payment from the insurer if the insured suffers a defined type of loss. This relationship is

usually dra:n upon in a formal legal contract. %nsurance companies also earn inestment profits,

4ecause the hae the use of the premium money from the time they receie it until the time the

need it to pay claims. This money is called the float. Chen the inestment of float are successful

the may earn large profits, een if the insurance company pays out of claims eery penny

receied as premiums.

%n fact, most insurance companies pay out more money than they receie in premiums. The

e5cess amount that they pay to policyholders is the cost of float. n insurance company :ill

profit if the inest the money at a greater return than their cost of float. n insurance contract or

policy :ill set out in detail the e5act circumstances under :hich a 4enefit payment :ill 4e made

and the amount of premiums.

CLASSIFICATION OF INSURANCE

The insurance industry in %ndia can 4roadly classify in t:o parts. The are.

1. &on ife general3 %nsurance

2. ife %nsurance

NON LIFE0GENERAL2 INSURANCE

Triton insurance co. ltd :as the first general insurance company to 4e esta4lished in %ndia in

1@H0, :hose shares :ere mainly 4y the =ritish. The first general insurance company to 4e set

up 4y an %ndian mercantile insurance company ltd., :hich :as sta4ili

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LIFE INSURANCE

ife insurance can 4e defined as life insurance proides a some of money if the person :ho

is insured dies :hile the policy is in effect.%n 1@1@ =ritish introduced to %ndia, :ith the

esta4lishment of the oriental life insurance company in alcutta. The first %ndian o:ned life

insurance company is the =om4ay mutual life assurance society :as setup in 1@70.The life

insurance act,1912 :as the first statuary measure to regulate the life insurance 4usiness in

%ndia. %n 19@A, the earlier legislation :as consolidated and amended 4y the insurance act,

19A@, :ith comprehensie proisions for detailed effectie control oer insurance.The union

goernment had opened the insurance sector for priate participation in 1999, also allo:ing

the priate companies to hae foreign e!uity up to 2?R . +ollo:ing the opening up of the

insurance sector, 12 priate sector companies hae entered the life insurance 4usiness.

BENEFITS OF LIFE INSURANCE

ife insurance encourages saing and forces thrift.

%t is superior to traditional saing ehicles.

%t help to achiee the purpose of life assured.

%t can 4e enchased and facilitates !uic; 4orro:ing.

%t proides alua4le ta5 relief.

Thus insurance is found to 4e ery useful in the lies of the person 4oth in short term and

long term.

PRESENT SCENARIO OF LIFE INSURANCE IN"USTR# IN IN"IA

The life insurance industry in %ndia gre: 4y an impressie G7.A@R, :ith premium income at -s.

1H?0.G1 4illion during the fiscal year 200?62007. Though the total olume of %Ns 4usiness

increased in the last fiscal year 200?620073 compared to the preious one, its mar;et share came

do:n from @H.7HR to @1.91R.

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The 17 priate insurers increased their mar;et share from a4out 1HR to a4out 19R in a yearNs

time. The figures for the first t:o months of the fiscal year 200760@ also spea; of the gro:ing

share of the priate insurers. The share of % for this period has further come do:n to 7H

percent, :hile the priate players hae gra44ed oer 2G percent. Cith the opening up of the

insurance industry in %ndia many foreign players hae entered the mar;et. The restriction on

these companies is that they are not allo:ed to hae more than a 2?R sta;e in a companyJs

o:nership.'ince the opening up of the insurance sector in 1999, foreign inestments of -s. @.7

4illion hae poured into the %ndian mar;et and 19 priate life insurance companies hae 4een

granted licenses. %nnoatie products, smart mar;eting, and aggressie distri4ution hae ena4led

fledgling priate insurance companies to sign up %ndian customers faster than anyone e5pected.

%ndians, :ho had al:ays seen life insurance as a ta5 saing deice, are no: suddenly turning to

the priate sector and snapping up the ne: innoatie products on offer. 'ome of these products

include inestment plans :ith insurance and good returns unit lin;ed plans3, multi L purpose

insurance plans, pension plans, child plans and money 4ac; plans.

ABOUT RELIANCE

0Fi,; 81( LOGO OF RELIANCE2

S#MBOL

*ur sym4ol,P-eliance ")DJ coneys the spirit of e5cellence,the human urge for progress, the

desire to reach higher, resole toPshape a 4etter futureJ.

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13The ")D is the highest point L the pinnacle 6 an a4iding sym4olof hope and optimism,

achieement and success.

23 The 4lue in -eliance ")D represents the inner strength, the self4elief, the !uiet confidence,

the sense of purpose that go into ma;ing of an epic journey.

A3 The red in -eliance")D represents the energy and dynamismthat propels one to the

pinnacle of oneJs am4ition.

-eliance ife %nsurance ompany imited is a part of -eliance apital td. of the -eliance 6

nil $hiru4hai m4ani #roup. -eliance apital is one of %ndiaJs leading priate sector financial

serices companies, and ran;s among the top A priate sector financial serices and 4an;ing

companies, in terms of net :orth. -eliance ife %nsurance is another step for:ard for -eliance

apital imited to offer need 4ased ife %nsurance solutions to indiiduals and orporates.

FOR RELIANCE

GRO!T IS CARE FOR GOO" EALT

-elianceNs occupational health centers carry out pre6employment and periodic medical chec;ups

as :ell as other routine preentie serices. 'pecialised tests li;e 4iological monitoring, health

ris; assessment studies and audits for e5posure to arious materials are also performed. /ealth

education and a:areness form an integral part of the health care programme at -eliance

GRO!T IS CARE FOR SAFET#

Ce 4eliee that the safety of each employee is the responsi4ility of the indiidual as :ell as of

the :hole community of employees

GRO!T IS CARE FOR TE ENVIRONMENT

-eliance 4eliees that a clean enironment in and around the :or;place fosters health and

prosperity for the indiidual, the group and the larger community to :hich they 4elong.

)nironmental protection is an integral part of the planning, design, construction, operation and

maintenance of all our projects.

GRO!T IS CONSERVATION

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t -eliance, energy conseration efforts see; to reduce the unit cost of fuels and to improe

efficiencies in energy intensie processes.

RELIANCE A"A GROUP

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PRESENT CAIRMAN

0Fi,; 81* SRI ANIL "IRUBAI AMBANI2

BOAR" OF "IRECTORS

'hri. nil $. m4ani :as 4orn to $hiru4hai m4ani and Bo;ila4en m4ani on Eune 0G,

19H9 at Mum4ai./e did his schooling and graduation in Mum4ai and thereafter pursued his

Masters of =usiness dministration from Charton =usiness 'chool, ('

nil $hiru4hai m4ani is the hairman of all listed #roup companies, namely -eliance

ommunications, -eliance apital, -eliance )nergy, -eliance /ealth, -eliance )ntertainment

and -eliance &atural -esources imited. nil $ m4ani joined -eliance in 19@A as o6hief

)5ecutie *fficer

(nder his leadership, -eliance pioneered %ndiaJs first forays into oerseas capital mar;ets

:ith international pu4lic offerings of glo4al depository receipts, conerti4les and 4ond

Charton =oard of *erseers, The Charton 'chool, ('.

entral disory ommittee, entral )lectricity -egulatory ommission

=oard of #oernors, %ndian %nstitute of Management, hmeda4ad

=oard of #oernors %ndian %nstitute of Technology, Banpur

26

SM/ MGR./ AM

ADVISORSTRAINEES

AM/ EEC!TIVES AM./"DM/"DE/MT.

SENIOR MGR./ REGIONA#/SR.

SR. EEC!TIVES

OTHERS- SA$

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%n Eune 200G, he :as elected for a si56year term as an independent mem4er of the -ajya

'a4ha, (pper /ouse of %ndiaJs "arliament a position he chose to resign oluntarily on

March 2H, 200?.

onferred the P)* of the ear 200GJ in the "latts #lo4al )nergy :ards

-ated as one of P%ndiaJs Most dmired )*sJ for the si5th consecutie year in the

=usiness =arons L T&' Mode opinion poll,200G

onferred PThe )ntrepreneur of the $ecade :ardJ 4y the =om4ay Management

ssociation, *cto4er 2002

nil $ m4ani joined -eliance in 19@A as o6hief )5ecutie *fficer, and :as

centrally inoled in eery aspect of the companyJs management oer the ne5t 22 years.

A!AR"S & ACIEVEMENTS

onferred the P)* of the ear 200GJ in the "latts #lo4al )nergy :ards

-ated as one of P%ndiaJs Most dmired )*sJ for the si5th consecutie year in the

=usiness =arons L T&' Mode opinion poll,200G

onferred PThe )ntrepreneur of the $ecade :ardJ 4y the =om4ay Management

ssociation, *cto4er 2002

:arded the +irst Charton %ndian lumni :ard

Charton %ndia )conomic +orum %3 in recognition of his contri4ution to the

esta4lishment of -eliance as a glo4al leader in many of its 4usiness areas, $ecem4er

2001

'elected 4y sia :ee; maga

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8oted PMT8 outh %con of the earJ, in 'eptem4er 200A

8oted as %ndiaJs =usiness %con +or The outh in a pollconducted 4y %ndia Today

maga

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chiee impecca4le reputation and credentials through 4est 4usiness practices

OBJECTIVE 1

t -eliance ife %nsurance, :e strongly 4eliee that as life is different at eery stage, life

insurance must offer fle5i4ility and choice to go :ith that stage. Ce are fully prepared andcommitted to guide you on insurance products and serices through our :ell6trained adisors,

4ac;ed 4y competent mar;eting and customer serices, in the 4est possi4le :ay.

ISTOR#

088@18?2

-eliance :as founded in 1@17, officially incorporating in 1@20, as the +ire ssociation of

"hiladelphia, organi

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of arious su4sidiaries, one of :hich :as -eliance %nsurance ompany founded in the 1920s. %n

19H0 the association merged its su4sidiaries into the parent company, and on Eanuary 1, 19H@,

The +ire ssociation of "hiladelphia officially changed its name to -eliance %nsurance

ompany. The companyJs gro:th continued through ac!uisition and the esta4lishment of

su4sidiaries. The #eneral asualty ompany of Cisconsin :as 4ought in 19H? and (nited

"acific %nsurance ompany in May 19?7, proiding the company :ith a solid presence in the

Mid:est and Cest respectiely. )ure;a %nsurance ompany :as started in 19H9. %ts name :as

changed to "lanet %nsurance ompany in 19?A, and 4eginning in 197?, :rote -elianceJs

commercial mass6mar;eting 4usiness.

8?18 TE SAUL STEINBERG ERA

%n 19?@ the 4ro;erage firm of arter, =erlind and Ceill arter3 sa: the potential in ac!uiring

an insurance company, many of :hich had strong 4alance sheets and e5cess surplus, :hich could

4e used for other thing outside of the insurance 4usiness. They e5amined seeral insurance

companies and eentually targeted -eliance as the most attractie candidate 4ecause of its strong

financial position and 4ecause a large percentage of the companyJs stoc; :as o:ned 4y arterJs

institutional clients thus ma;ing them prime for a ta;eoer. fter haing approached and haing

4een rejected 4y many other financiers, such as a:rence Tisch, arter presented the idea of

ac!uiring -eliance to'aul "hillip 'tein4erg.

Mr. 'tein4erg :as 4orn ugust 19A9 in =roo;lyn,&, and receied a =achelor of 'cience

degree in )conomics from the Charton 'choolof +inance at the (niersity of "ennsylaniain

19H9. %n 19?1, at the age 22, he founded easco $ata "rocessing )!uipment orporation, a

small office data6processing e!uipment firm that leased %=Mcomputers. The company gre:

rapidly, e5panded its capa4ilities, and in 19?H :ent pu4lic. s easco gre:, 'tein4erg sought to

diersify the company. %n 19?@ easco 4ought 91R of -eliance %nsurance ompany and its

su4sidiaries 'tein4erg 4ought the 4alance of the company in the :inter of 19@13. year later in

19?9 'tein4erg attempted to ta;e oer the I9 4illion hemical =an;,then one of the nations

largest financial institutions. The attempt failed and earned 'tein4erg the enmity of the &e:

or; financial community and a reputation for 4rashness. Mr. 'tein4erg remar;ed at the time, %

al:ays ;ne: there :as an esta4lishment % just thought % :as part of it. +ifteen years later

30

http://en.wikipedia.org/w/index.php?title=General_Casualty_Company&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=General_Casualty_Company&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=General_Casualty_Company&action=edit&redlink=1http://en.wikipedia.org/wiki/Saul_Phillip_Steinberghttp://en.wikipedia.org/wiki/Brooklynhttp://en.wikipedia.org/wiki/Wharton_Schoolhttp://en.wikipedia.org/wiki/University_of_Pennsylvaniahttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/Chemical_Bankhttp://en.wikipedia.org/w/index.php?title=General_Casualty_Company&action=edit&redlink=1http://en.wikipedia.org/wiki/Saul_Phillip_Steinberghttp://en.wikipedia.org/wiki/Brooklynhttp://en.wikipedia.org/wiki/Wharton_Schoolhttp://en.wikipedia.org/wiki/University_of_Pennsylvaniahttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/Chemical_Bank

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'tein4erg :ould ma;e another legendary run at another fa4led merican institution, The Calt

$isney o./e failed in this 4id too, 4ut forced $isney to pay him I?0 million in greenmail for

his shares. %n the early 1970s under the direction of 'tein4erg, -eliance and its corporate parent

easco, under:ent significant changes in structure and operation. holding company called

-eliance #roup /oldings :as formed, :hich through an intermediate holding company o:ned

-eliance and its su4sidiaries and sister companies. %n 197A easco changed its name to -eliance

#roup, %nc., to reflect a corporate strategy a:ay from computers serices to:ard financial

serices and nota4ly insurance6related ones. &e: insurance su4sidiaries :ere spa:ned to handle

the companyJs increasing e5pansion into selected specialty lines, including ommon:ealth and

Title %nsurance ompanyc. 197?3, -eliance %nsurance ompany of &e: or; 197@3, -eliance

loyds 19@03. %n the early 19@0s, the e5pansion included the incorporation of seeral ne: life

insurance companies. Throughout this period of e5pansion and diersification, -eliance

%nsurance ompany continued to handle most of the standard lines of insurance :ith :hich most

people are familiar, including personal automo4ile and homeo:ners.

%n 19@1 'tein4erg, still chairman of the 4oard and chief e5ecutie officer, ac!uired all

outstanding shares of -eliance #roup, %nc. Thus the company :as no: priately6o:ned 4y

'tein4erg and his family. %n 19@?, ho:eer, the company again :ent pu4lic selling a4out 20R of

its stoc; :ith 'tein4erg and his family retaining the rest.

The companyJs stoc; alue plummeted follo:ing the stoc; mar;et crash of 19@7 and its

under:riting results suffered in the late 19@0s, in large part due to claims arising from hurricanes

and the 19@9 'an +rancisco earth!ua;e. ll the :hile, ho:eer, -elianceJs gro:th strategy

continued, e5panding into eer more diersified insurance mar;ets, including surety and

reinsurance. =eyond the e5pansion of its insurance mar;ets, -eliance #roup deeloped

otherareas of 4usiness among :hich, -eliance $eelopment #roup, %nc. handled real estate

operations, and -eliance onsulting #roup proided consulting serices for energy,

enironment, and natural resources.

s the company e5panded in one area through start6up and ac!uisition, it mean:hile sold off

other interests. %n 19@9 the companyJs sale of $ays orporation, o:ner of the $ays %nn hotel

chain, nearly tripling its initial 19@G inestment.

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http://en.wikipedia.org/wiki/Walt_Disney_Co.http://en.wikipedia.org/wiki/Walt_Disney_Co.http://en.wikipedia.org/wiki/Greenmailhttp://en.wikipedia.org/wiki/Commonwealth_Land_Title_Insurance_Companyhttp://en.wikipedia.org/wiki/Commonwealth_Land_Title_Insurance_Companyhttp://en.wikipedia.org/wiki/Stock_market_crash_of_1987http://en.wikipedia.org/wiki/1989_San_Francisco_earthquakehttp://en.wikipedia.org/wiki/Walt_Disney_Co.http://en.wikipedia.org/wiki/Walt_Disney_Co.http://en.wikipedia.org/wiki/Greenmailhttp://en.wikipedia.org/wiki/Commonwealth_Land_Title_Insurance_Companyhttp://en.wikipedia.org/wiki/Commonwealth_Land_Title_Insurance_Companyhttp://en.wikipedia.org/wiki/Stock_market_crash_of_1987http://en.wikipedia.org/wiki/1989_San_Francisco_earthquake

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816778 TE COLLAPSE

lthough it :as hushed at the time, 'aul 'tein4erg suffered a stro;e in 199H. ctie control of

his financial empire :as assumed 4y his 4rother, -o4ert 'tein4erg. hanges :ere instituted

ostensi4ly to:ard ma;ing -eliance more focused on insurance, and for a :hile, it loo;ed as if

the company :as prospering. Many inestors :ho had long ago gro:n :eary of 'aul 'tein4erg

:ere endorsing the company. -#/ stoc; reached a record high. The company reported in its

199@ annual financial statement, filed in March 1999, a I1.7 4illion statutory surplus, its largest

in history, and a profit for that year of IH@H million. Cithin less than three years, ho:eer, the

ommon:ealth ourt of "ennsylania :ould issue a court order placing -eliance into

li!uidation. The company lost I177 million in net income in 1999 and another I19@ million in

2000. %n early 2000 -eliance agreed to 4e ac!uired 4y eucadia &ational for stoc; that amountedto only IAH9 million. The price represented a mar;et capitali

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that ultimately caused the companyJs demise. %n its eagerness to e5pand and gro:, policies :ere

:ritten too cheaply e5cessie diidends :ere paid to stoc;holders largely the 'tein4ergs

themseles3 and the company :as mismanaged. nd as a result it failed.

67781PRESENT TE LIUI"ATION

+ollo:ing the *cto4er A, 2001, court order placing the company in li!uidation, the "ennsylania

%nsurance $epartment too; oer control of the )state of -eliance, :hich 4egan a long,

complicated, and ongoing process of determining the full e5tent of the companyJs lia4ilities and

distri4ution of all of its assets. %n the meantime, legal actions :ere instituted against the

companyJs former officers and directors for 4reach of their fiduciary duties and negligence

leading to the companyJs do:nfall. The actions :ere precedent6setting in nature and resulted in a

4etter understanding of :hat had contri4uted to -elianceJs pro4lems, as :ell as appro5imately

I100 million in settlements to offset the companyJs lia4ilities.

The order of li!uidation triggered the esta4lished statutory proisions of arious state insurance

guaranty funds, :ho too; oer the handling of many of the claims against the companyJs

policies. Chether a stateJs guaranty association :ill assume responsi4ility for a gien claim

depends on seeral factors, nota4ly :hether the insurance company :as licensed to do 4usiness

in the state and :hether there e5ists other insurance for the loss. The amount of assets of the

policyholder, the date the claim is reported, and other aria4les also play a role in determining

:hether a guaranty fund :ill accept the claim. laims payments made 4y a guaranty association

are assessed against insurers licensed to do 4usiness in the state, :ho :ill ultimately pass along

the cost to their policyholders. =y most any measurement, -eliance :as the largest insurance

li!uidation in history. *nce such measurement, proided 4y the &ational onference of

%nsurance +unds &%#+3, is the total amount paid 4y all of the guaranty funds for each

insolency from inception to the present. The chart 4elo: from the &%#+ lists the fie largest

insolencies through 200@

#e% I$-)'4e$t /)m.%$y P%yme$t-

2001 -eliance %nsurance ompany I2,2?H,@GH,?12

2002 egion %nsurance ompany I1,272,?9G,0??

2000 alifornia ompensation %nsurance I1,0G9,7GH,G20

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ompany

2000 +remont %ndemnity %nsurance ompany I@GA,G0H,7G?

2001 "/%* %nsurance ompany I?99,G20,1GG

COMPANIES

-eliance %nsurance ompany 4ecame a su4sidiary of easco in 19?@ and of -eliance #roup in

197A :hen easco changed its name. %n addition to -eliance %nsurance ompany, -eliance

#roup at arious times o:ned the follo:ing other corporations

anan:ill

ommon:ealth and Title %nsurance ompany

ommon:ealth Mortgage ssurance ompany

ommon:ealth -elocation 'erices, %nc.

#eneral asualty ompanies

/er4ert C. $ais ompany

-# %nternational, %nc.

-#>/agler =ailly

-#>Moody6Tottrup

-#>8ectron

-eliance $eelopment #roup, %nc.

-eliance $irect %nsurance ompany

-eliance &ational %nsurance ompany

-eliance -einsurance orporation

-eliance 'tandard ife %nsurance ompany

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-eliance 'urety ompany

(nited "acific ife %nsurance ompany

(nited "acific -eliance ife %nsurance ompany of &e: or;

MO"ERN INSURANCE MARKET

#lo4al integration of financial mar;ets resulted from de6regulating measures, technological

information e5plosion and financial innoations. i4eralisation and #lo4alisation hae allo:ed

the entry of foreign players in the %nsurance sector. Cith the entry of priate and foreign players

in the %nsurance 4usiness, people hae got a lot of options to choose from. -adical changes are

ta;ing place in customer profile due to the changing life style and social perception, resulting in

erosion of 4rand loyalty. To surie, the focus of the modern insurers shifted to a customer6

centric relationship.

1. LIBERALISATION AN" PRIVATISATION

%ndiaJs economic deelopment made it a most lucratie %nsurance mar;et in the :orld. =efore

the year 1999, there :as monopoly state run % transacting life 4usiness and the #eneral

%nsurance orporation of %ndia :ith its four 'u4sidiaries transacting the rest. %n the :a;e of

reform process and passing %nsurance -egulatory and $eelopment uthority %-$3 ct

through %ndian parliament in 1999, %ndian %nsurance :as opened for priate companies.

i4eralisation on the %nsurance sectors has allo:ed the foreign players to enter the mar;et :ith

their %ndian partners. Most of the foreign %nsurers hae joined :ithin the local mar;et. %ndia

offers immense possi4ilities to foreign %nsurers since it is the :orldJs most populous country

haing oer a 4illion people.%nsurance industry had ten and si5 entrants in life and non6life sector

respectiely in the year 200062001. The industry again sa: t:o and three entrants in the life and

non6life 4usiness respectiely in the year 200162002. *ne additional entrant :as made 4oth in

the life and in non6life 4usiness in 200G and 200H respectiely. t present there are fourteen

companies each in ife and #eneral %nsurance. The +unds earlier generated 4y the state o:ned

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insurers hae 4een diersified :ith other ne: insurers. Ce should :ait and see ho: the ne:

players are going to 4oost up our economy.

2. COMPETITION

"riate and +oreign entrants in the %nsurance %ndustry made others difficult to retain their

mar;et. /igher customer aspirations lead to ne: e5pectations and compel him to moe

to:ards the insurer :ho proides him the 4est serice in time. %t 4ecomes less ia4le for

them een to maintain the functional net:or;s or competitie standards and serices.

To surie in the %ndustry they analyse, the emerging re!uirements of the policyholders >

insureds and they are in the forefront in proiding essential serices and introducing

noel products. There4y they 4ecome niche specialists, :ho proide the right serice to

the right person in right time.

9; INFORMATION TECNOLOG#

%nsurers are the earlier adopters of technology. =ecause of the %nformation reolution,

customers are free to choose from a :ide range of ne: and innoatie products. The

%nsurance companies are utili insureds 4etter, :ider and faster access to

products and serices.

The %nternet has proided 4rand ne: distri4ution channels to the %nsurers. The

technology has ena4led the %nsurer to innoate ne: products, proide 4etter customer

serice and deeper and :ider insurance coerage to them.

t present, %nsurance companies are giing customers a distinct claim id to trac; claims

on6line, entertaining on6line enrollment, eligi4ility reie:, financial reporting, 4illing and

electronic fund transfer to its 4enefit clan customers.

:; PRO"UCT INNOVATIONS

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%nsurers are continuously innoating ne: products 4ased on for:ard6loo;ing models. They hae

deeloped ne: products addressing the ne: challenges in society and products to address the

ha

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%nsurance is a uni!ue serice industry. The ;ey industry driers are related to life style issues in

terms of perceiing insurance as a saings instrument rather than for ris; coer, need 4ased

selling, !uality of serice and customers a:areness.

%n the present competitie scenario, a ;ey differentiator is the professional customer serice in

terms of !uality of adice on product choice along :ith policy sericing. 'ericing focus is on

enhancing the customerJs e5perience and ma5imi

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0Fi,; 81i RURAL INSURANCE2

RURAL INSURANCE

The census of 2001 sho:s that the rural sector in %ndia comprises 72R of the population and

generates 2?R of the #$". Thus, the rural sector is important 4oth politically and economically.

&aturally, rural insurance has 4een emphasised since the nationalisation of life insurance

4usiness. The goernment follo:ed a three6pronged strategy for life insurance. +irstly, it targeted

the rural :ealthy :ith regular indiidual policies. 'econdly, it offered group policies to those

:ho could not afford indiidual policies. Thirdly, for the ery poor, it offered goernment6

su4sidised policies. +or non6life insurance in the rural sector, the goernment has actiely

pursued specific strategies such as crop insurance and the insurance of farm implements such as

tractors and pumps.

%t :as noted in the section on regulation that, after fie years of operation, eery priate sector

life insurance company has to achiee a certain proportion of their 4usiness in the rural sector. %t

is a aria4le and rising proportion, :ith at least 1HR of 4usiness in the rural sector after fie

years. +or the ife %nsurance orporation of %ndia %3, the re!uirement is 1@R.

!AT EACTL# IS MEANT B# TE RURAL SECTORH

The term rural sector is confusing 4ecause not all goernment 4odies use the same definition.

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'eeral distinct definitions :hich are releant for the insurance sector3 hae 4een used in the

past.

S The -esere =an; of %ndia -=%3 defines four different entities. ll definitions apply to the

population si

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0Fi,; 81 S!OT ANAL#SIS2

STRENGTS 1

0Fi,; 81' STRENGTS2

13 =rand &ame

23 -o4ust and $ierse "roduct portfolio

A3 11GH 4ranches 1,9H,000 adisors and oer 1?,000 employees.

G3 'trong solency and financial sta4ility

!EAKNESS 1

0Fi,; 81m !EAKNESS2

13 ac; of dertising

23 &o foreign partner 4ringing in +$%

A3 'udden e5pansion increased operations and administration e5penses due to :hich losses

incurred.

G3 ontroersies related to -eliance apital may hae a negatie impact.

OPPORTUNITIES

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0Fi,; 81$ OPPORTUNIT#2

13 *pportunities in the ne:er semi6ur4an and rural mar;ets

23 $e6Tariff 4y %-$

A3 ustomers needs gro:ing :ith change in society

G3 "remium collection gro:ing

H3 8ast untapped mar;et.

TREATS

0Fi,; 81 O TREATS2

13 +ierce ompetition

23 lready esta4lished 'trong pu4lic players

A3 &e: )ntrants +oreign #iants :ith arge "oc;ets

G3 )conomic crisis and glo4al financial pro4lems

H3 )ntry of ne: &=+s in the sector.

GRO!T OF RELIANCE LIFE INSURANCE IN INSTALLE" CAPACIT#

)yeing 4etter premium gro:th in the second half of current fiscal, leading priate sector insurer

-eliance ife e5pects to 4eat the estimate of an oerall 10R industry gro:th in the entire

financial year 201261A.The company is e5pecting its e5panded distri4ution net:or; and ne:

customer6centric initiaties to help it achiee dou4le6digit oerall 4usiness gro:th during the

current fiscal, -eliance ife %nsurance "resident and )5ecutie $irector Malay #hosh said.

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O&ot:ithstanding a challenging economic enironment, :e are confident of achieing a dou4le6

digit gro:th in our oerall 4usiness 4y the current financial year,O #hosh said.

OCe e5pect higher gro:th in third and fourth !uarter of this fiscal and hopeful of ending 20126

1A on a positie gro:th note,O he added. -eliance ife, part of nil m4ani6led -eliance

#roupNs financial serices arm -eliance apital, is targeting a total premium income of -s ?,100

crore in 201261A.

%t e5pects ne: 4usiness premium of -s 2,A00 crore in this fiscal, up from -s 1,@09 crore in the

last fiscal, :hile the rene:al premium for the current fiscal is e5pected to gro: to -s A,@00

crore, from -s A,?@@ crore in 2011612.

OCe e5pect significant gro:th in our ne: 4usiness premium coming from tier %% and %%% cities

and a marginal gro:th in rene:als in the current fiscal,O #hosh said./e said that the company

e5pects almost ?0R of its ne: 4usiness to come from non6ur4an areas, :hile AGR are e5pected

from rural areas :ith su46H,000 population. #hosh said premium income is 4eing largely drien

4y traditional products, rather than unit6lin;ed plans.

OCe 4eliee long6term sustaina4le gro:th for the industry can come only 4y reaching out to

more customers :hich is :hy our focus is clearly the indiidual 4usiness segment. +urther,

:ithin indiidual 4usinesses, :e are focusing on regular premium 4usiness,O #hosh said. Chile

agreeing that gro:th patterns may not 4e as aggressie as they hae 4een in the past, #hosh said

there is still tremendous untapped potential in the country to ensure long6term gro:th of the

domestic insurance industry.

-eliance ife registered an oer three6fold surge in its net profit to -s A1 crore for the !uarter

ended 'eptem4er A0, :hile its total premium net of reinsurance3 for the !uarter :as -s 1,00A

crore.The company had recorded its first full6year net profit at -s A7A crore in the fiscal ended

March A1, 2012. %t sold oer one million policies in 2011612 and garnered a total premium of -s

H,G9@ crore in that year.The life insurer recently launched a Pcareer agencyJ format, offering a

fi5ed stipend and aria4le commission payout for its 1.2H6la;h agents.

-eliance ife, as a late entrant in the life insurance industry, does not hae a 4ancassurance tie6

up 4an;s acting as corporate agents for distri4ution of insurance products3 :ith any 4ig

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4an;.=ancassurance accounts for A0 per cent of the premium income for priate insurers.

/o:eer, for -eliance ife it is miniscule on this account.

(nder the current %nsurance -egulatory and $eelopment uthority %-$3 regulations, one

4an; can tie6up :ith only one insurance company for 4ancassurance. %n the (nion =udget this

year, the finance minister announced that 4an;s :ill 4e allo:ed to 4ecome insurance 4ro;ers

:hich :ill ena4le them to sell policies of multiple insurance companies.

-eliance ife reported a profit 4efore ta5 of -s A@0 crore and mopped up total premium of -s

G020 crore for the year ended March A1, 201A."riate sector insurer -eliance ife e5pects to

maintain a 10 per cent gro:th in total premium income on the 4ac; of gro:th in regular

premium policies and 4etter policy rene:als.

=y ;eeping in regular touch :ith e5isting policyholders and charting out a gro:th path for

agents, the company aims to achiee dou4le6digit 4usiness gro:th during the current fiscal, said

hief )5ecutie *fficer nup -au.urrently, traditional life insurance products account for @0

per cent of its total product portfolio, :hile unit6lin;ed insurance products account for the rest.

GRO!T IN SALES OF TE IN"USTR#

eading priate sector insurer -eliance ife %nsurance ompany -%3 has recorded a four6fold

jump in third !uarter net profit to -s G0 crore on the 4ac; of an improed product portfolio and

distri4ution 4ase.%n the three6month period ended $ecem4er A1, 2012, -%, part of the nil

m4ani6led -eliance #roupJs financial serices arm -eliance apital td, registered a net profit

of -s G0 crore as against -s 10 crore in the year6ago !uarter. -eliance ifeJs total premium net

of reinsurance3 in the *cto4er6$ecem4er !uarter :as -s 9A0 crore, :hile the total funds under

management stood at -s 19,A?? crore in the !uarter ended $ecem4er A1, 2012, an increase of 17

per cent oer the corresponding !uarter a year ago.

change in the product 4as;et :ith a focus on traditional products, productie agents,

customer centricity and use of ena4ling technologies helped us reap higher profit.

*ur num4er of policies has started gro:ing... s long as :e are selling more and more policies,

:e are confident that going for:ard our profits :ill continue to increase, -eliance ife

%nsurance )* nup -au told "T%.

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0Fi,; 81. R GRO!T2

-%Ns talent 4ase, as on March A1, 2011, stands at 22,??1 :ith an aerage employee age of G1

years.

%n +611, the =usiness Transformation initiatie created high engagement and e5citement

amongst the :or;force across all leels at -%. 'ome ;ey accomplishments on people

management front are illustrated 4elo:

Le%$i$, & "e4e').me$t

%n +611, -% enhanced deliery oer the last year 4y ensuring 1,H@9,A9H man hours of learning

actiities at its manufacturing diisions. #oing for:ard, -% :ill focus on 4uilding specialist

s;ills and multiple cadres in the organisation to support its goals and aspirations. dditionally,

seeral thousand man6hours of deelopmental interention :as underta;en to train the leadership

teams on deeloping the second6line, compensation and 4enefits, e5ecutie coaching, re:ards

and recognition programmes and interie:ing selection.'i5 'igma deployment in +611 :asfocused on improing process capa4ility relia4ility issues as per the needs of indiidual

manufacturing sites.

total of @H projects :ere e5ecuted leading to financial 4enefit of -s. 2? rore for the year

2010611.s a part of standardi

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#reen =elts. %n +611, eight employees hae 4een certified as -eliance ertified #reen =elt

-#=3.

C)m.e$-%ti)$ & B%$di$,

+611, sa: a significant change in the ompanyNs compensation 4anding management

process. *n the aria4le pay front, efforts are afoot to moe to:ards an accounta4ility and

responsi4ility drien aria4le pay programmes designed uni!uely for arious leels.

T%'e$t A/+ui-iti)$

The 4elief in its people has 4een the foundation and corner stone of -%Ns gro:th story. %t :as

the youth in their 20s A0s :ho 4rought -% to this pedestal oer the last A decades and going

for:ard the intent is to pass the 4aton on to young leaders oer the ne5t 2 to A years, to further

propel this success story for the ne5t A decades.

To:ards this end there has 4een a significant endeaor in re6enforcing the e5isting talent 4ase of

22,??1. -%Ns campus hiring programme from the engineering, finance and management

institutes has 4een far more ro4ust, :ith :ider coerage to ensure higher cali4er as :ell

diersity.

-% has launched a specially tailored programme O-eliance ccelerated eadership

"rogrammeO, in order to hire high cali4er young talent into the ompany and 4uild a talent

pipeline for the future.

R T%$-()m%ti)$

-% is focused on 4uilding :hat :ould 4e the 4est OTo =eO *rganisation oer the ne5t 1@ to 2G

months. %n order to achiee this o4jectie, -% focused on follo:ing initiaties

"eople )nergising and engaging the e5isting :or; force, 4uilding a pipeline for the

future and creating an e5citing :or; place.

/- "rocesses To ensure that -% continues to hae the :orldNs 4est practice and

processes, e5isting processes are 4eing reengineered and ne: processes are 4eing

introduced.

"olicies The focus in +611 :as to ma;e the policies employee friendly ;eeping in ie:

employee specific needs. The /- policies are 4eing reie:ed and 4enchmar;ed :ith

:orld class organisations.

/- 'hared 'erice entre The entre :as esta4lished last year to ensure efficient and

effectie deliery of /- serices to -% employees.

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FUTURE PROSPECTS IN TERMS OF GRO!T IN ALL POSSIBLE ASPECTS

%ndiaNs gro:ing economy, coupled :ith a significant rise in the young :or;ing population, has

potential for deelopment of the life insurance sector. This is in addition to the large population

that remains uninsured.Moreoer, of the insured population, a significant percentage remains

under6insured. 'o, :hile premium as percentage of #$" is G.G7 per cent, sum assured as a

multiple of #$" is just 0.A. %t is estimated that the sector :ill gro: at a compounded aerage

gro:th

Se/t)Out'))

'ince the life insurance sector :as opened up in 2000, it has no: gone through t:o clear cycles 6

the first of ery high gro:th #- of oer 12 per cent in num4er of ne: policies 4et:een

20006103 and then one of su4stantie moderation #- of oer 9 per cent 4et:een 20106123.

$espite this, long6term gro:th prospects for the industry remain intact.#uidelines for traditional

and pension products, currently in the draft stage, :ill 4e standardised in the year ahead. Chile

standard guidelines should reduce approal time, and therefore time to deelop and mar;et ne:

products, too much standardisation can stifle innoation. ustomers hae aried needs and

insurers should offer products that cater to the specific needs of the distinct segments.

more open architecture utilising 4an;ing infrastructure and reach3, :hile li;ely to increase

distri4ution costs in the short term, :ill ultimately ensure customers hae the 4est options and

increase penetration of life insurance.+inance 4udgets hae al:ays had a significant impact on

the shape of the %ndian industry. This time around, there is a clear need to announce measures

that :ill help sustain momentum of gro:th and confidence in the economy.

t the same time, the goernment :ill need to contain the fiscal deficit and inflation.

#oernment spending :ill hae to 4e efficient and sectors that :ill hae a longterm impact on

the economy, such as education, infrastructure and health, :ill hae to 4e monitored.ll these

and ta5 incenties for long6term protection products :ill fuel gro:th of the sector.

The insurance sector L especially life insurance L in %ndia too; off on a gro:th trajectory after

the industry :as opened up for competition a4out 10 years ago.

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The life insurance industry has continued to gro:, despite the economic slo:do:n, as policy6

holders are realising the alue of insurance, says ' = Mathur, secretary general, ife %nsurance

ouncil, an industry forum constituted under the %nsurance.

%nsurance penetration is also increasing rapidly. ccording to the council, insurance penetration

L measured as a ratio of total premium to the #$" L has shot up from 2.71 per cent in 2001 to

G.7 in 2007. ife insurance penetration alone touched G per cent in fiscal 2009 and is e5pected to

reach G.19 per cent in the current fiscal. %ndiaJs share of the :orld premium has also !uadrupled

to 2 per cent oer the last decade, adds Mathur.

ccording to the %-$ figures, the life insurance sector has 4een one of the most 4uoyant in the

financial serices sector in the current fiscal. $uring the pril to *cto4er period, life insurance

premiums soared 4y 1@ per cent, touching ('I 21.9H 4illion. ife insurance premiums record

huge jumps to:ards the end of eery financial year, as ta56payers inest in ta56saing policies.

%n fact, almost G0 per cent of premiums pour in during the last !uarter Eanuary6March3 of any

gien fiscal.

"riate insurers are also e!ually 4ullish a4out the sectorJs prospects, despite the gro:ing

competition. -ajesh -elan, managing director, Metife %ndia %nsurance o td, points out that

the industry is on the threshold of a giant leap. The %ndian goernment has introduced a 4ill in

"arliament see;ing to increase the sectoral foreign direct inestment +$%3 cap in the insurance

sector to G9 per cent from 2? per cent at present. This moe is e5pected to result in huge capital

inflo:s as many international players are ;een on raising their sta;e in the joint entures. *n

their part, insurance companies are gearing up to meet the surge in 4usiness that is e5pected to 4e

generated oer the coming years. %$=% +ortis ife %nsurance L a joint enture 4et:een $utch

finance major +ortis and %ndian institutions %$=% =an; and +ederal =an; L plans to dou4le its

headcount to 2,000, 4esides e5panding its 4ranch net:or; from AH to 100 in 2010.

%t also plans to dou4le the num4er of insurance agents to 1H,000. Ce hae seen a 7G per cent

increase in premium incomes during the first6half of the current fiscal, :hich is a good

indication, points out # 8 &ages:ara -ao, managing director and

chief e5ecutie, %$=% +ortis ife %nsurance. The insurance sector in %ndia is set to :itness

continued gro:th oer the coming years as a:areness a4out the need to ta;e ris; coerage, at an

early age, to protect oneself from a host of threats gro:s s:iftly, especially in semi6ur4an and

rural areas.

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FINANCIAL ANAL#SIS OF TE IN"USTR#

R%i-i$, C%.it%'

M& insurance companies, including joint entures 4et:een %ndian firms and foreign partners,

are e5pected to enter the capital mar;et in 2010, raising funds to finance their e5pansion plans.

(nder the e5isting rules, an insurance company can opt for listing only after 10 years of

operations. Therefore, insurance companies set up in 1999, :ould no: 4e eligi4le to raise funds

and are conse!uently planning to go in for initial pu4lic offerings %"*s3.

The industry is also e5pecting major changes in insurance la:s, including the clearing of a 4ill

4y "arliament that :ould allo: foreign partners to hae a sta;e of up to G9 per cent in an

insurance company. The industry has also sought the goernmentJs approal for cutting the

minimum 106year stipulation for a pu4lic issue 4y a fe: years.

. The company plans to raise ('I 7H million internally to 4oost capital, :hich is needed to help

it accomplish e5pansion plans. Ce e5pect a gro:th of 10 to 1H per cent and :ill infuse capital

as :e :rite ne: 4usiness, says "arasnis.

%nternational insurance companies are also eyeing sta;es in firms that do not hae foreign

partners. *ne of them is -eliance ife %nsurance, :hich is loo;ing at the possi4ility of going in

for a strategic placement of 10 to 1H per cent :ith an international insurer and an %"* as :ell.

ccording to 'am #hosh, ceo, -eliance apital L the parent company of -eliance ife %nsurance

L it has 4een approached 4y three to four international insurance companies and priate e!uity

funds for a sta;e in its insurance operations.

Im.e--i4e St%ti-ti/-

T/) life insurance sector is gro:ing at an impressie clip in %ndia, :hich has emerged as the

fifth6largest life insurance mar;et in the :orld. The life insurance sector is gro:ing at almost AH

per cent annually and the 2A life insurance companies L including state6o:ned 4ehemoth ife

%nsurance orporation of %ndia %3 L are striing to raise their mar;et share. ccording to the

ife %nsurance ouncil, an industry forum, life insurance is a ('I G1 4illion industry. %t also

ran;s num4er t:o, second only to 4an;s, for mo4ilised saings. The sector controls ('I H.A@

4illion of deployed capital,

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more than ('I 200 4illion of managed assets and has inested ('I 2H 4illion

in the infrastructure sector.

Fi$%$/i%' i$/'u-i)$

%T is not just ur4an residents :ho are reaping the 4enefits of innoatie insurance plans.

gro:ing num4er of rural L and poor L residents are also 4eing targeted 4y goernment

departments and are 4eing 4rought :ithin the am4it of insurance schemes.

These schemes reflect the goernmentJs desire to ensure financial inclusion, coering een the

poorest of families, as part of its larger goal of inclusie and sustaina4le gro:th. Many of these

schemes hae proed to 4e not just popular, 4ut een successful in their implementation. +or

instance, the num4er of indiiduals insured under the -aji #andhi 'hilpi ':asthya =ima

ojana -#''=3, the first PcashlessJ health insurance initiatie for artisans in %ndia, has almost

topped the t:o million6mar;. rtisans spread across 29 states and more than ?00 districts hae

gained from this comprehensie health insurance scheme facilitated 4y the $eelopment

ommissioner, /andicrafts, under the (nion Ministry of Te5tiles.

ll artisans up to the age of @0 are eligi4le for coerage. The artisan, spouse and t:o dependants

are coered annually for hospitalisation e5penses up to ('I A2H, :hile the principal mem4er6

artisan is also coered for ('I 2,1H0 for personal accident.

F)m b%$/%--u%$/e t) m%''%--u%$/e

T/-)) years after the insurance sector in %ndia :as thro:n open to competition, the %nsurance

-egulatory and $eelopment uthority %-$3 allo:ed 4an;s to sell insurance policies under

the 4road la4el of P4ancassuranceJ. %t :as a :in6:in situation for 4oth the insurance companies

and 4an;s :hile the former did not hae to spend huge amounts in setting up a distri4ution

net:or;, The latter could earn handsome reenues as fee64ased income 4y selling policies

through their 4ranch net:or;s.

%ndeed, many 4an;s L including pu4lic sector ones L got dra:n to the insurance 4usiness, than;s

to the popularity of the 4ancassurance model. some:hat similar model has emerged of late,

du44ed PmallassuranceJ, :here insurance policies are sold at shopping malls. The +uture

#enerali #roup L :hich includes 4oth the life insurance and non6life entures L promoted 4y

Bishore =iyaniJs +uture #roup and %talian insurance giant, the #enerali #roup, has pioneered

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the concept in %ndia. The policies of the t:o companies :ould 4e mar;eted, among others,

through oer 1H0 shopping malls spread across the

country. The PmallassuranceJ model has :or;ed :ell for 4oth the insurance company and the

retailer, indicating that it could soon 4ecome as popular as the P4ancassurance.

PROBLEMS BEING FACE" B# RELIANCE LIFE INSURANCE

0Fi,; 81+ PROBLEMS FACE" B# RLI2

-eliance ife faced t:o pro4lems :hen it came to consumer communication. *ne :as that of

ma;ing a mar; in the life insurance sector :here 4oth priate and goernment 4odies are

competing heaily and second to deelop the -eliance 4rand in the life insurance sector,

:here the player is already adertising heaily for its other serices li;e telecom.

Thompson +inancial is the adertising agency for -eliance ife %nsurance. *ne of the latest

campaigns from the agency is Pl:ays up, &eer $o:nJ, :hich has 4een ta;en across

medium. Thompson +inancial officials e5plain that the A?06degree approach :as needed to

4rea; the clutter in the life insurance segment. The campaign is the 4rainchild of Thompson

+inancial reatie $irector 8ishal 'ingh. The production house is Beroscene and -ajesh

'aathi is the $irector.The campaign that 4ro;e on the 4ac; of the Corld up, has 4een

e5ecuted across outdoor, print and T8. long :ith this, -eliance ife %nsurance :ill also

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use significant am4ient media. This :ould 4e supported 4y on6ground actiities in shopping

malls and other consumer touch points.

)5plaining more on the thought process 4ehind the campaign, 'ingh informed, To connect

:ith the consumer, it is most important to cut through the clutter. Ce :anted to ta;e a light6

hearted route and that is the main tool used in the latest communication.

lmost eery player in the segment is trying to do the same thing for their consumers and for

a consumer to identify a 4rand :ith a 4enefit or a product is difficult. -eliance, :ith all its

adertising, is an esta4lished 4rand name. The challenge for us :as to relate the 4rand :ell to

the category, 'ingh reiterated.

)la4orating more on the target group, 'ingh informed, =asically insurance is not for the

older age group. %t is targeted to the young age. *ur T# is the youth that fall in the age

category of A06AH haing a strong foothold in life. The approach :as to ta;e a:ay all the

PscaryJ things of life insurance and gie it a gar4 of an inestment option that is ris;

free.'ingh also admits that the caption Pl:ays (p and neer $o:nJ for a serious product

li;e ife insurance :as a ris;. /e said, %t :as daring of the client to accept a line li;e that L

it got us the attention, :e really o:e it to the client to let us try this.

-eliance ife %nsurance has filed 172 +%-s at police stations across the country follo:ing

complaints against spurious call centres offering 4uyers a policy :hich :ould entitle the inestor

for a -s 106la;h loan.

OCe hae receied hundreds of !ueries from people :ho hae receied such calls. Ce hae run

campaigns to inform the pu4lic that these are 4ogus calls and not to fall prey to them,O said nup

-au, M$ )*, -eliance ife %nsurance.

ccording to -au, the company has filed complaints after ac!uiring information in respect of

calling num4er and name of caller.

These complaints hae not made much head:ay since there :as no transaction. lso, people

:ho receie these calls are reluctant to 4e party to a police complaint. This ma;es it difficult for

the police to pursue a case against the callers.

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CALLENGES FACE" B# RELIANCE LIFE INSURANCE IN ERA OF GLOBAL

COMPETITION

%ndiaJs rapid rate of economic gro:th oer the past decade has 4een one of the more significant

deelopments in the glo4al economy. This gro:th has its roots in the introduction of economic

li4eralisation in the early 1990s, :hich has allo:ed %ndia to e5ploit its economic potential and

raise the populationJs standard of liing.

%nsurance has a ery important role in this process. /ealth insurance and pension systems are

fundamental to protecting indiiduals against the ha

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su4stantial losses from natural disasters caused 4y other ha

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H. More proactie approach to:ards fund mgt. to proide good returns to policy holder.

?. Mis6sale

7. consumer a:areness 6 There is ery lo: leel of consumer a:areness regarding insurance,

there are so much 4enefits that a consumer can hae :ith insurance, 4ut then :heneer a

%nsurance guy approaches them they tend to say i already hae insurance and i donNt :ant another

one, so in this regard there is ery lo: leel of consumer a:areness :hich is a major challenge

in the insurance sector.

@. sales a challenge 6 %n the %ndian onte5t %nsurance is still ie:ed as a ta5 instrument and not

as a need. ustomers are still not a:are of the ade!uate insurance they need. Most of the

customers hae purchased insurance to sae ta5es and not for the reason that life is a pure ris;

:hich needs to 4e coered. $uring a slo: do:n sales staff should 4e gien ade!uate support ,sales training regarding arious types of insurance products :hich are aaila4le in the mar;et

should 4e imparted at regular interals especially a4out competitor products. Training to handle

customer !ueries and moc; sessions should 4e conducted regularly.

9. +inding !uality manpo:er 6 %ts slo:do:n and jo4 mar;et is facing pressure. %ts essential in

this period to find !uality manpo:er :ho not only a4le to a4sor4 the current pressure due to

crisis 4ut also 4een a4le to get the ;no:ledge and improe the productiity.

SOME OF TE MAJOR R CALLENGES I OBSERVE" IN RELIANCE LIFE

INSURANCE "URING M# SUMMER TRAINING ARE AS FOLLO!S1

1. Talent crunch.

2. Mounting attrition rate.

A. $ifficulty in retention management.

G. 'tressful jo4.

H. 'tiff mar;et competition.

?. Managing :or;force diersity.

7. -ising training replacement cost.

@. $etermining designing appropriate training programs for agents and officers.

9. %ncreasing rate of jo4 dissatisfaction .

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CHAPTER- 2PRODUCT PROFILEOF

RELIANCE LIFE

INSURANCE

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NAME OF "IFFERENT POLICIES OF RELIANCE LIFE INSURANCE

INSURANCE PLANS

PROTECTION PLANS

"rotect your family een :hen youJre not around 4y inesting in -eliance "rotection "lans.

hoose a limited period plan or a lifetime protection plan depending on your needs. The latest

"rotection "lans are as 4elo:U

1. -eliance Term plan

2. -eliance 'imple Term plan

3. -eliance 'pecial Term plan

4. -eliance redit #uardian plan

5. -eliance 'pecial redit #uardian plan

6. -eliance )ndo:ment plan

7. -eliance 'pecial )ndo:ment plan

@. -eliance onnect 2 ife plan

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http://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/TermPlan/RTP_reliance_term_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/SimpleTermPlan/RSimpleTP_reliance_simple_term_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/SpecialTermPlan/RSTP_reliance_special_term_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/CreditGuardianPlan/RCGP_reliance_credit_guardian_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/SpecialCreditGuardianPlan/RSCGP_reliance_special_credit_guardian_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/EndowmentPlan/REP_reliance_endowment_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/SpecialEndowmentPlan/RSEP_reliance_special_endowment_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/Connect2Life/RC2LP_reliance_connect_2_life_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/Connect2Life/RC2LP_reliance_connect_2_life_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/TermPlan/RTP_reliance_term_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/SimpleTermPlan/RSimpleTP_reliance_simple_term_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/SpecialTermPlan/RSTP_reliance_special_term_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/CreditGuardianPlan/RCGP_reliance_credit_guardian_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/SpecialCreditGuardianPlan/RSCGP_reliance_special_credit_guardian_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/EndowmentPlan/REP_reliance_endowment_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/SpecialEndowmentPlan/RSEP_reliance_special_endowment_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/Connect2Life/RC2LP_reliance_connect_2_life_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspxhttp://www.reliancelife.com/rlic/Products/SolutionsforIndividuals/Plans/Connect2Life/RC2LP_reliance_connect_2_life_plan.aspx?from=Protection%20Plans&path=ProtectionPlans/protection_plan.aspx

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9. -eliance Chole ife plan

10. -eliance Cealth V /ealth plan

11. -eliance ash +lo: plan

SAVINGS & INVESTMENT PLANS

-eliance 'aings %nestment "lans help you to set aside some money to achiee specific goals

in life, :hich means that you can enjoy life and proide for your familyJs daily needs. The

saings and inestment "lans are as 4elo:U

1. -eliance Total %nestment "lan 'eries % 6 %nsurance

2. -eliance Cealth V /ealth plan

3. -eliance utomatic %nestment plan

4. -eliance Money #uarantee plan

5. -elia