MINESH TRAINING PROJECT (2)

8/8/2019 MINESH TRAINING PROJECT (2)

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DECLARATION

I MEENESH KUMAR PACHAURI student of bachelor of business administration here by

declare that the Major research project entitled ³ANALYSIS OF UNIT LINK PLANS´ is based on my original research work.

Date:

MEENESH PACHAURI

B.B.A V SEM



CERTIFICATE

THIS IS to certify that Mr. MEENESH KUMAR PACHAURI student of prestige institute of

Management programme has completed his summer training project on³ANALYSIS OF

UNIT LINK PLANS´ from 23 august 2010 to 18 september 2010 and prepared this report

under my guidance.

Date: Prof. ASHISH

MEHRA

Faculty guide



ACKNOWLEDGEMENT

I Express my profound sense of gratitude to my faculty guide Prof.ASHISH MEHRA

Faculty member (pimg) for his systematic guidance throughout this project work.

I am deeply identified to Mr. Devender branch head reliance life insurance.pvt ltd.

Gwalior.for having given me a chance to work in up country markets and also

For his unflinching support during my stay at the place.

I wish to express my heartful thanks to my company guide MIS URVASHI SINGH

Sales development manager Mr.Pinaki R.Das for his invaluable advise and support

During my project whenever is got bogged down by difficulties.finally it gives me

Great pleasure to express my sincere thanks to all the sales officers.Area sales

managers.Distributors and staff member in the college who extended all kinds of

Co-operation and helped me during the course of this work.

MEENESH PACHAURI



CONTENT LIST



HISTORY OF ORGANISATION AND OBJECTIVE

Few men in history have made as dramatic a contribution to their country¶s economicfortunes as did the founder of Reliance, Shri. Dhirubhai H Ambani. Fewer still have left

behind a legacy that is more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of

men, the architect of India¶s capital markets, the champion of shareholder interest.

But the role Dhirubhai cherished most was perhaps that of India¶s greatest wealth creator. Inone lifetime, he built, starting from the proverbial scratch, India¶s largest private sector enterprise.



When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$300 (around ` 14,000). Over the next three and a half decades, he converted this fledgling

enterprise into a ` 60,000 crore colossus²an achievement which earned Reliance a place onthe global Fortune 500 list, the first ever Indian private company to do so.

Dhirubhai is widely regarded as the father of India¶s capital markets. In 1977, when Reliance

Textile Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the RelianceTextile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gainin the Indian markets.

Under Dhirubhai¶s extraordinary vision and leadership, Reliance scripted one of the greatestgrowth stories in corporate history anywhere in the world, and went on to become India¶s

largest private sector enterprise.

Through out this amazing journey, Dhirubhai always kept the interests of the ordinaryshareholder uppermost in mind, in the process making millionaires out of many of the initialinvestors in the Reliance stock, and creating one of the world¶s largest shareholder families.

OBJECTIVE

Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below:

Emerge as transnational Life Insurer of global scale and standard

Create best value for Customers, Shareholders and all Stake holders



Achieve impeccable reputation and credentials through best business practices

CORPORATE OBJECTIVE

At Reliance Life Insurance, we strongly believe that as life is different at every stage, life insurance

must offer flexibility and choice to go with that stage. We are fully prepared and committed to guide

you on insurance products and services through our well-trained advisors, backed by competent

marketing and customer services, in the best possible way.

y It is our aim to become one of the top private life insurance companies in India and to become

a cornerstone of RLI integrated financial services business in India.



FINANCIAL PERFORMANCE



FINANCIAL STATEMENT

Balance sheet

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds

Owner's fund

Equity share capital 3,270.37 1,573.53 1,453.39 1,393.21 1,393.17

Share application money - 69.25 1,682.40 60.14 -

Preference share capital - - - - -

Reserves & surplus 1,25,095.97 1,12,945.44 77,441.55 59,861.81 43,760.90

Loan funds

Secured loans 11,670.50 10,697.92 6,600.17 9,569.12 7,664.90

Unsecured loans 50,824.19 63,206.56 29,879.51 18,256.61 14,200.71

Total 1,90,861.03 1,88,492.70 1,17,057.02 89,140.89 67,019.68

Uses of funds

Fixed assets

Gross block 2,15,864.71 1,49,628.70 1,04,229.10 99,532.77 84,970.13

Less : revaluation reserve 8,804.27 11,784.75 871.26 2,651.97 4,650.19

Less : accumulated depreciation 62,604.82 49,285.64 42,345.47 35,872.31 29,253.38

Net block 1,44,455.62 88,558.31 61,012.37 61,008.49 51,066.

Capital work-in-progress 12,138.82 69,043.83 23,005.84 7,528.13 6,957.79




Investments 19,255.35 20,268.18 20,516.11 16,251.34 5,846.18

Net current assets

Current assets, loans & advances 66,595.32 56,298.09 44,743.86 30,210.99 24,696.15

Less : current liabilities & provisions 51,584.08 45,675.71 32,221.16 25,858.06 21,547.00

Total net current assets 15,011.24 10,622.38 12,522.70 4,352.93 3,149.15

Miscellaneous expenses not written - - - - -

Total 1,90,861.03 1,88,492.70 1,17,057.02 89,140.89 67,019.68

Notes:

Book value of unquoted investments 15,563.83 18,927.65 12,746.75 9,438.20 5,322.60

Market value of quoted investments 8,248.22 2,930.63 53,126.09 24,454.46 780.71

Contingent liabilities 25,531.21 36,432.69 37,157.61 46,767.18 24,897.66

Number of equity sharesoutstanding(Lacs) 32703.74 15737.98 14536.49 13935.08 13935.08



ANALYSIS OF STATEMENTS BY RATIO

(Rs crore)

Ratios


Per share ratios

Adjusted EPS (Rs) 46.91 100.13 93.80 87.29 65.37

Adjusted cash EPS (Rs) 79.00 133.14 127.14 121.84 89.78

Reported EPS (Rs) 49.64 97.28 133.86 85.71 65.08

Reported cash EPS (Rs) 81.74 130.29 167.20 120.26 89.49

Dividend per share 7.00 13.00 13.00 11.00 10.00

Operating profit per share (Rs) 91.64 153.47 154.32 146.44 103.76

Book value (excl rev res) per share (Rs) 392.51 727.66 542.74 439.57 9.73

Book value (incl rev res) per share (Rs.) 419.43 802.54 548.73 458.61 10.24

Net operating income per share (Rs) 587.37 902.02 920.48 801.57 580.39

Free reserves per share (Rs) 378.21 704.28 520.59 416.90 301.36

Profitability ratios

Operating margin (%) 15.60 17.01 16.76 18.26 17.87

Gross profit margin (%) 10.13 13.35 13.14 13.95 13.67

Net profit margin (%) 8.35 10.65 14.45 10.64 11

Adjusted cash margin (%) 13.29 14.58 13.73 15.13 15.35




Adjusted return on net worth (%) 11.95 13.76 17.28 19.85 20.17

Reported return on net worth (%) 12.64 13.36 24.66 19.49 20.08

Return on long term funds (%) 11.71 11.34 17.18 19.83 18.88

Leverage ratios

Long term debt / Equity 0.44 0.59 0.35 0.32 0.36

Total debt/equity 0.48 0.64 0.46 0.45 0.48

Owners fund as % of total source 67.25 60.77 68.38 68.76 67.37

Fixed assets turnover ratio 0.94 1.01 1.29 1.13 0.95

Liquidity ratios

Current ratio 1.29 1.23 1.39 1.17 1.15

Current ratio (inc. st loans) 1.11 1.08 1.01 0.77 0.83

Quick ratio 0.76 0.90 0.93 0.68 0.67

Inventory turnover ratio 8.29 12.92 10.57 10.65 9.60

Payout ratios

Dividend payout ratio (net profit) 14.97 14.49 9.80 13.75 17.52

Dividend payout ratio (cash profit) 9.09 10.82 7.85 9.80 12.74

Earning retention ratio 84.16 85.92 86.01 86.50 82.56

Cash earnings retention ratio 90.60 89.41 89.68 90.33 87.30

Coverage ratios

Adjusted cash flow time total debt 2.42 3.53 1.97 1.64 1.75




Financial charges coverage ratio 16.08 14.58 19.95 16.06 16.84

Fin. charges cov.ratio (post tax) 14.37 12.56 21.90 13.90 14.95

Component ratios

Material cost component (% earnings) 80.00 76.98 73.86 72.32 73.86

Selling cost Component 2.14 2.18 2.41 3.27 5.85

Exports as percent of total sales 53.46 61.22 56.80 52.40 38.10

Import comp. in raw mat. consumed 95.39 95.74 93.96 94.04 95.41

Long term assets / total Assets 0.71 0.74 0.69 0.73 0.72

Bonus component in equity capital (%) 64.47 30.61 33.14 34.57 34.58

(Rs crore)

Capital structure

From

Year

To

Year

Class Of

Share

Authorized

Capital

Issued

Capital

Paid Up

Shares (Nos)

Paid Up

Face

Value

Paid Up

Capital

2009 2010

Equity

Share 5,000.00 3,270.37 3270374360 10 3,270.37

2008 2009EquityShare 2,500.00 1,573.80 1573798233 10 1,573.80

2007 2008

Equity

Share 2,500.00 1,453.65 1453648601 10 1,453.65



From

Year

To

Year

Class Of

Share

Authorized

Capital

Issued

Capital

Paid Up

Shares (Nos)

Paid Up

Face

Value

Paid Up

Capital

2006 2007

Equity

Share 2,500.00 1,393.51 1393508041 10 1,393.51

2005 2006

Equity

Share 2,500.00 1,393.51 1393508041 10 1,393.51

2004 2005

Equity

Share 2,500.00 1,393.51 1393508041 10 1,393.51

2003 2004

Equity

Share 2,500.00 1,396.38 1396377536 10 1,396.38

2002 2003

Equity

Share 2,500.00 1,396.38 1396377536 10 1,396.38

2001 2002

Equity

Share 1,200.00 1,053.76 1053757027 10 1,053.76

2000 2001

Equity

Share 1,200.00 1,053.76 1053757027 10 1,053.76

1999 2000

Equity

Share 1,200.00 1,053.76 1053757027 10 1,053.76

1998 1999

Equity

Share 1,200.00 933.75 933749403 10 933.75

1997 1998

Equity

Share 1,200.00 933.75 933749403 10 933.75

1996 1997

Equity

Share 550.00 460.37 460369802 10 460.37

1995 1996

Equity

Share 550.00 460.37 460369802 10 460.37



From

Year

To

Year

Class Of

Share

Authorized

Capital

Issued

Capital

Paid Up

Shares (Nos)

Paid Up

Face

Value

Paid Up

Capital

1994 1995

Equity

Share 550.00 460.37 460361894 10 460.36

1993 1994

Equity

Share 350.00 319.95 319945057 10 319.95

1992 1993

Equity

Share 350.00 245.49 245481348 10 245.48

1991 1992

Equity

Share 200.00 152.15 152140973 10 152.14

1987 1988

Equity

Share 200.00 152.15 152146493 10 152.15

1984 1985

Equity

Share 75.00 51.61 51609318 10 51.61

1983 1984

Equity

Share 50.00 36.15 36151310 10 36.15

1982 1983

Equity

Share 50.00 18.59 18594569 10 18.59

1981 1982

Equity

Share 19.00 16.67 16673754 10 16.67

1980 1981

Equity

Share 18.00 12.06 12062291 10 12.06

1979 1980

Equity

Share 18.00 7.54 7538932 10 7.54

1977 1979

Equity

Share 8.00 5.95 5951100 10 5.95



From

Year

To

Year

Class Of

Share

Authorized

Capital

Issued

Capital

Paid Up

Shares (Nos)

Paid Up

Face

Value

Paid Up

Capital

1975 1977

Equity

Share 8.00 5.95 5951100 10 5.95

1973 1974

Equity

Share 3.00 - 1100 10 -

RECRUITMENT IN INSURANCE SECTOR 4.0

In India, the concept of insurance was never a given a serious thought, as compared to other

countries. People still are under insured; life insurance premia to Gross Domestic Product



(GDP) ratio is a mere 1.4% as compared to a healthier rate of 8% amongst other developing

countries. The reason being lack of awareness and opportunities combined with poor state of

services provided.

Presently in India, the insurance sector is nationalized; Life Insurance Corporation of India(LIC) and General Insurance Company (GIC) render services along with its 4 subsidiaries.

While LIC provides life insurance, GIC is concerned with non life insurance like - motor,

marine, fire, health and personal accident insurance. LIC employs people in various

departments - publicity and public relation department, development department, personnel

department, accounts department, actuarial department, secretarial department, legal

department, investment department, inspection department, mortgages department, vigilance

department, foreign department, corporate planning department, building department etc.

Of late, parliament's nod for the Insurance Regulatory and Development Authority (IRDA)

bill has changed the whole scenario. With the passage of the bill, entry of private Indian as

well as foreign companies, along with existing players, in the insurance sector will add

variety and quality to the present insurance services. The other positive impact would be on

creation of new employment opportunities. Till now employment in the insurance sector was

considered akin to any government job, but now with private participation, it will assume

significant importance and probably become an exciting career option.

Apart from people directly working in the insurance companies, there are other categories of

people related to the insurance sector. These include the following.

1. INSURANCE AGENTS: An insurance agent is a person who takes up agency from the insurance

company to sell their policy on a commission basis. He acts as an intermediary between the

insurance company and the policyholder. But before doing so, he has to undergo training and get a

certificate of proficiency from the insurance company.

Mostly insurance policies are bought through agents. Agents help individuals and

companies in selecting the right policy for their needs. They plan for the financial security

of individuals, families and businesses and advise them about insurance protection. They

also help the policyholders at the time of settlement of the claim. The job of agents is quite

challenging as selling a product like insurance policy is not easy. For being successful,

agents should be outgoing and social. They should have a knack of convincing people.



The Corporation does recruitment of agents after a written test and an interview followed

by a training period of 3 years. Graduates in the age group of 21 to 35 years are preferred.

2. INSURANCE SURVEYORS: Insurance surveyors are qualified professionals deputed for the

assessment of losses, according to their qualification and experience. They play an important role

as they serve a link between the insurer and the insured. Their job is to assess the actual loss and

avoid false claims filed by the insured and on the other hand help the insured that has suffered a

genuine loss by indemnification of the loss. They act as investigators, assessors for determining the

loss and liability to be reported to the insurance company. The work is not always delighting as it

often involves a lot of hard work and traveling at awkward times.

Surveyors are not employees of the insurance companies. They are independent

professionals who are hired by the insurance companies. To hold a license of a surveyor,

one must possess any one of the following qualifications.

o Fellowship or Associate ship of the Institute of Insurance Surveyors and Adjustors

(IISA), Mumbai.

o A Degree or Diploma in Architecture of a Recognized University or Institute.

o Fellowship or Associate ship of the Institute of Chartered accountants or Cost and

Works Accountants.

o A Degree or Diploma of a Recognized Institute of Engineering.

O A Degree or Diploma in Naval Architecture.

INSURE LIVES, ENSURE SUCCESS

An insurance agent's ultimate mission is to provide consistent quality and satisfaction to

customers and a profitable return to the company.

The insurance industry today is undergoing dramatic changes due to the development of new

innovations that are strengthening existing customer relationships as well as seeking new

relationships.

Privatization has opened the barriers that once segmented the industry and prevented new

companies from entering the market ² offering new products or opening new lines of

business. Such movements have increasingly demanded better technology tools to acquire

new customers, retain existing customers, improve customer services, reduce operating

expenses and manage information« particularly at the point of sale.



With the liberalization of the Indian insurance sector that threw open doors to many insurance

companies to set up their bases in India, the imminent challenge is the management of a huge

number of insurance agents and policyholders. Stringent processes such as interviews,

selection criteria, recruitment of insurance agents, training and certification processes are

posing new challenges, especially considering the complexity of Indian topography and

population density.

RECRUITMENT

Recruitment is the process of finding and attracting capable applicants for employment.

The process begins when new recruits are sought and ends when their applications are

submitted. The result is a pool of candidates from which new employees are selected.

Under the regulation of Insurance Agents Regulatory Act 2000, any person desirous of

obtaining an agent's license shall have to pass the pre-recruitment examination in life or

general insurance business conducted by an examination body duly recognized by the

Insurance Regulatory and Development Authority (IRDA).

PURPOSE AND IMPORTANCE OF RECRUITMENT:

y Increase the pool of job candidates at minimum cost.

y Meet the organizations legal and social obligations regarding the composition of its

workforce.

y Determine the present and future requirements of the organization in conjunction with its

personnel planning and job-analysis activities.

y Evaluate the effectiveness of various recruiting techniques and sources for all types of job

applicants.



RECRUITMENT PROCESS

SCREENED BY SALES MANAGER

INTERVIEW WITH BRANCH MANAGER

FORMS & LEGAL FORMALITIES

SOURCING OF CANDIDATES



RECRUITMENT PROCESS FOR ADVISORS



relationships.

Privatization has opened the barriers that once segmented the industry and prevented new

companies from entering the market ² offering new products or opening new lines of

business. Such movements have increasingly demanded better technology tools to acquire

new customers, retain existing customers, improve customer services, reduce operating

expenses and manage information« particularly at the point of sale.

With the liberalization of the Indian insurance sector that threw open doors to many insurance

companies to set up their bases in India, the imminent challenge is the management of a huge

number of insurance agents and policyholders.

Stringent processes such as interviews, selection criteria, recruitment of insurance agents,

training and certification processes are posing new challenges, especially considering the

complexity of Indian topography and population density.

EXAM CONDUCTED BY AS PER IRDA

GUIDELINES

CODING OF ADVISOR



QUALIFICATION OF THE APPLICANT

The applicant must possess the minimum qualification of pre-university or equivalent

examination conducted by any recognized board or institute, where the applicant resides in a

place with a population of 5,000 or more as per the last census, and pass in tenth standard or

equivalent examination from any recognized board or institution if the applicant resides in

any other place.

An applicant applying for a license to act as an insurance agent will have to complete training

from an IRDA-approved institution with at least 100 hours of practical training in life or

general insurance business, as the case may be, which may be spread over three to five

weeks. For renewal of his license, the agent will have to undergo training for just 25 hours.

COMPOSITE AGENTS' TRAINING

Applicants seeking license to act as a composite agent shall have to undergo training in an

approved institution, with at least 150 hours' practical training in life and general insurance

business, which may be spread over seven to eight weeks.

TRAINING OF PROFESSIONALS

Professionals like associate or fellows of Insurance Institute of India (III) or Institute of

Chartered Accountants of India (ICAI) or Institute of Costs andWorks Accountants (ICWA)

or Institute of Company Secretaries of India (ICSI), MBA from a recognized university or thecandidates possessing professional qualification in marketing from a government-recognized

university or institute shall have to complete just 50 hours of training.



Every person aspiring to take up agency as a career will have to undergo on-the-job practical

training with the designated company where s/he will work under the supervision of a sales

functionary.

The trainees will be taught the subtle art of creating the need, awareness and importance of insurance in the mind of the customer, understanding the requirements of the clients, and

proposing a couple of alternative solution for satisfying the wants of the clients.

Most people have their first contact with an insurance company through an insurance sales

agent or broker. These professionals help individuals, families, and businesses select

insurance policies that provide the best protection for their lives, health, and property.

Insurance agents have to work exclusively for one insurance company while the brokers can

place insurance policies for their clients with an insurance company that offers the best rate

and coverage.

In either case, agents and brokers prepare reports, maintain records, seek out new clients, and,

in the event of a loss, help policyholders settle insurance claims. Increasingly, some may also

offer their clients, financial analysis or advice on the ways they can minimize risk.

Technology has greatly impacted the insurance agency, making it much more efficient and

giving the agent the ability to take on more clients. Through computers agents are now linked

directly to the insurance companies, making the task of obtaining price quotes and processing

applications and service requests, much easier and faster. IT also enables an agent to be better

informed about new products that the insurance carriers may be offering.

The four major issues for insurers in managing the agency network revolve around the

strategies for fixing the distribution network:

y Align channel strategies around customer demand and channel usage

y Manage channels against business profitability requirements and profitable revenue growth

y Integrate channels with back-office staff and processes to ensure that everything works

smoothly

y Deliver consistent value to customers via well-supported, trained and motivated people in the

channels



ADDING VALUE

From a product manufacturer's viewpoint, there continues to be a growing need to provide

value-added services to agents. Insurance agents expect product suppliers to assist them in

building their practice beyond product promotions.

Numerous studies have shown that product suppliers and dealers who provide true value-

added services to advisors will substantially benefit from stronger relationships and increased

sales. One such strategy is to enabling cross selling of financial products like:

y Cross-selling mutual funds to insurance clients, and

y Cross-selling insurance products to investment clients.

These programmers independently train insurance agents to sell other financial products to

overcome the obstacles associated with transitioning their practice to cross-sell other products

and services to existing clients. The programmers help advisors apply a process-driven

approach to client mining that will lead to a greater success in insurance or investment

product sales.

CHANNEL PRODUCTIVITY

The reason channel productivity is the No 1 problem most companies are worried about is

that the cost is skyrocketing and not generating increased revenue. Channel decisions are now

elevated to a strategic level. The overriding concept is to become customer-centric and tofocus channels on improving the customer experience.

But it is not advisable to use all channels to serve all customers. Some customer segments

may prefer certain channels, but if these segments are not profitable, it may be prohibitively

expensive to serve them using their preferred channels. Consequently, insurance companies

need to tailor their channels to appeal to the largest number of profitable customers to

maximize earnings.

IMPROVING AGENCY EFFECTIVENESS

Insurers must begin to focus on the quality of their customer relationship management

(CRM) and sales activities, with "improving sales effectiveness" as the top priority ²

allowing the agents to spend more time with their clients and prospects (what they do best)

and less time in performing administrative duties.



The industry has focused on product creation and largely ignored distribution and sales

strategies. Only by shifting their focus to having more interaction with policyholders can

insurance carriers expect to strengthen brand loyalty, re-establish value pricing and sell high-

margin products. This will require mobile support systems that facilitate increased face-time

with customers.

The ultimate mission is to deliver on a customer-centric corporate strategy with channels that

provide consistent quality and satisfaction to customers and a profitable return to the

company. Here, then, lies the potential for creating customer value so that it defines our brand

versus competitors.

ROLE OF SELECTION:

The role of selection in an organization¶s effectiveness is crucial for atleast, two reasons.

First, work performance depends upon individuals. The best way to improve performance is

to hire people who have the willingness to work. Arguing from the employees viewpoint,

poor or inappropriate choice can be demoralizing to the individual concerned and de-

motivating to the rest of the workforce. Effective selection, therefore, assumes greater

relevance.



Second, cost incurred in recruiting and hiring personnel speaks volumes about the role of

selection.

F OR EG. To prove how expensive recruitment has become. Pepsi had gone on a crash recruitment

drive. Six people from the company took over the entire Oberoi Business Center in Mumbai for six

days, 3000 applicants in response to the advertisement issued earlier were scanned: applicants were

asked to respond by fax within 100 hours: finally, the short listed persons were flown in an and

interviewed. Quite an expensive affair by any standard.

RECRUITMENTRecruitment is a linking function ± joining together those with job to fill and those seeking for jobs. It

is a joining process in that it tries to bring together job seekers and employer with a view to

encourages the former to apply for a job with the latter.

The basis purpose of recruitment is to develop a group of potentially qualified people. To this end the

organization must communicate the position in such a way that job seekers respond. To be cost

effective, the recruitment process should attract qualified applicants and provide enough information

for unqualified persons to self-select themselves out.

Relationship with other activities

This figure illustrates the relationship between job analysis, human resource planning, and the

selection process.

Human resource planning : Determines the specific number of jobs that are to be filled.

Nature and requirement of specific jobs Number of specific job to be filled

Job analysis Personnel planning

Recruitment

Pool of qualified applicants

Inducement

y Compensation

y Career

Constraints

y

Poor imagey Unattractive job

y Government



RECRUITMENT PROCESS IN RLIC

Joining Kit Joining Tracker

Day of Joining

Base Data Form

C V Short listing

Call For Interview

First Interview

Second Interview

Third Interview

Rejected

Offer Mail

Selected

Head Office

Employee Data

Base

Employee Data

Base

Partial Kit With

Joining Kit

Photo Copy of

Partial Kit

Regional Office



RECRUITMENT PROCESS IN RLICs

SELECTION OF THE APPLICANT

S CREENING

Candidate having KSA To effectively perform the job

Criteria¶s in RLIC

y Candidate should be graduate

y Work Experience 2 Years Sales(others) 1 years sales(insurance)

y Age Maximum 35

INTERVIEW

Generally 3 interviews are to be taken for the selection of a candidate. First interview is taken by a

senior HR manager.

Second interview is being taken by senior most HR manager.

Finally Third interview is being taken by HR manager. A HR manager can reject any candidate who

has been selected in first 2 interviews on the basis of educational qualification, work experience, past

criminal records and reference check. Final salary package is being decided during this interview.

There is an Interview assessment sheet .whatever the Interviewer observe about interviewee Write in

the IA S

. The IAS Provides Following Entitlements:

y Name of the candidates

y Position Considered for

y Location

y Source/Reference

y Date



Interview Assessment

y Technical Strengths

y Behavioral Strengths

y Area Of Improvement

y Recommendation

y

Compensation Solution Suggested

OFF ER CLO S ING

Closing is done by a HR manager .In this HR Person mainly focus on salary negotiation.

Offer closing is based on the persons Qualification, Total no. of work experience, Last CTC earned

Last company brand. When the salary negotiated is accepted by the candidate then offer mail is

released.

OFF ERMAIL

An offer mail is being released to all the selected candidate .In this offer mail all the details regarding

joining are present. Generally an offer mail is floated before two days of joining.

The offer mail entitles the following details:

y Date of joining

y Day of joining

y Designation Of The candidates

y Package per annum

y Venue

Along with this following document is asked to bring at the time of joining:

y Resignation acceptance which should be signed and stamped by immediate boss

y Last Company appointment letter

y Last drawn Salary slip (if the candidates was an agent then he is required to bring IRDAlicense ,commission statement ,Bank Statement , or form 16A

y Pan Card If applied then Acknowledgement for the same.

y Identity prove: Driving license/ ration card/voter ID card/Passport

y 10 Photographs with blue background.

y Qualification certificates and mark sheet



y NOC of the previous company.

y Person should be aware of his blood group.

All the documents are mandatory to bring

PROCESS OF JOINING

Final Joining date is the date decided by the HR person .Jonnie has to fill two forms on the day of

joining. One form is online and one is Joining kit.

BA S E DATA F ORM

It is an on line form present on the official website of Reliance Life Insurance (www.rclhrssg.com).

This form contain all the personal details of the employee which is recorded in the employee data

base .After completion of base data form a BD number is assign to each employee. This BD number is being written on the Joining kit of employee.

VALIDATION

: Base data form is used as a reference during validation of an employee joining kit.Without

validation a joining kit cannot be dispatched to HO.



BA S E DATA F ORM

Following information is to be filled in this form:

y Name

y Gender

y Fathers name

y DOB, Place of Birth

y Blood Group, Height,Weight

y Identification Mark

y Present & Permanent Address(Period of staying)

y Contact Number

y PAN

y E mail ID

y Place of postingSubmitted to Regional HR & in UP- Uttaranchal Region

CONTENT JOINING KIT BOOKLET

y

Joining reporty Personal Information Form

y Information Released form

y Data Reference Check Form

y Salary Account Declaration

y Medical Insurance data

y I Card Form

y Requisition Form For E Mail



y Business Card Requisition

y Hardware Requisition Form

y Data Card Requisition Form

y PF/EPS Declaration/ Nomination Form

y PF Transfer Form

y

Gratuity Nomination Formy Superannuation Nomination Form

y Term Insurance Nomination Form

y CTC Allocation Plan

y Investment Declaration Form

y Data Ownership Undertaking

y IT security Policy Declaration

y Code Of Ethics Undertaking

y Specimen Signature Form

JOINING KIT EVALUATION

While evaluating the joining kit it is required that joiner must submit Xerox of all the document that

were asked in the offer mail.

Signature of the joiner is mandatory in the company appointment letter.

It is also to be check that joining kit is been properly filled without any errors.

PROCE SS OF KIT DI S PATCHING

Before dispatching the joining kit to Mumbai head office following things are provided:

y Compensation sheet.(CTC Comparables)

y Reference check for E3 and above

y BDF validation(validation of the salary , designation, grade, function, reporting authority,SAP code)

Preparing of Partial kit

y Personal Information

y Interview Assessment sheet

y Curricular Vitae of the candidate



y Resignation of previous company

y Appointment Letter of RLIC

y Background verification form

y Salary Account Declaration

y Medical Hospitalization insurance form

All these are further processed for Xerox And then original of F ollowing:

y Requisition Form For E Mail

y Business Card Requisition

y Hardware Requisition Form

Are kept regional office for record

WELFARE ACTIVITIES

In its continuous efforts to positively impact the community it operates within RelianceInfrastructure Ltd. has formulated policies for social development that based on the followingguiding principles:

y Adopt an approach that aims at achieving a greater balance between socialdevelopment and economic development.

y Adopt new measures to accelerate and ensure the satisfaction of the basic needs of all people.

y Work towards elimination of all barriers to the social inclusion of disadvantagedgroups- such as the poor or the disabled.



y Give unfailing attention to children for in their hands lies the future of the country. Itis for their sake that health, education and environment are given priority in our

programme and investments.

Reliance Infrastructure Ltd. has partnered with various social and environmentalorganizations to address the issue of sustainable development and social upliftment. The

major partners in this area are International Institute for Sustainable Future (IISF), Lion'sClub, Rotary Club, Maharashtra Energy Development Association (MEDA) and various local NGOs.

The Company in discharge of its responsibility as a corporate citizen actively contributes to

community welfare measures and takes up several social initiatives every year. RelianceInfrastructure Ltd. has been closely working with institutions and social organizations andsupporting their programmes for social development, adult literacy, adoption of village, tree

plantation schemes etc. Some of the outstanding contributions of Reliance InfrastructureLtd. discharging its social role:

y In the year 2002 the floodwater entered the homes of all those who lived at groundlevel in Dahanu and our Dahanu plant had to be shut down. Enormous damage was

caused due to this disaster. The total damage in this region was about Rs. 25 crores. Inspite of this Reliance Infrastructure Ltd. went to help the citizens of Dahanu withclean drinking water and bags of grain were distributed to those who lived in theaffected areas.

y The Company has constructed a 6- storey, 100 bed hospital in Mumbai viz. BSESMG Hospital. The building is spread on a plot of area of 40,000 sq. ft. This fullyequipped hospital will cater to the needs of the Company's consumers. Apart fromgeneral medical services, speciality services like C T Scan, Stress Test, Intensive CareUnit, etc. will also be made available to patients. Chief Minister of Maharashtra, ShriVilasrao Desmukh at the Andheri Sports Complex, inaugurated the hospital on May01, 2002.

y In January 2001, immediately in the aftermath of the earthquake that struck parts of Gujarat, Reliance Infrastructure Ltd. rushed teams of its executives, engineers andskilled workforce to the quake affected areas and speedily restored electricity supply.The efforts put in by our team were lauded by the Chairman and senior officials of Gujarat State Electricity Board. In addition, Reliance Infrastructure Ltd. organized a3-day drive for collection of relief materials in Mumbai, which were immediatelydispatched to the affected areas.

y Reliance Infrastructure Ltd. also took up a turnkey contract on no profit basis for theconstruction of more than six hundred houses in Dudhai of Bhuj district, Gujarat inassociation with a social welfare organization. The township was completed in arecord period of 100 days and dedicated to the residents of the village by the Hon'ble

Prime Minister. Reliance Infrastructure Ltd. with contributions from its employeesand matching contribution from the Company constructed a community center whichalso was inaugurated by the Hon'ble Prime Minister. From these contributions,Reliance Infrastructure Ltd. also completed construction of a 30 room secondaryschool in the same township in Dudhai.

y When the super cyclone devastated parts of Orissa, the Company deputed a team of engineers with support staff for restoration of electricity in the affected areas. Thetimely assistance rendered by our team was effective and widely commended.



y The Company has constructed the Junior College of Science building at Dahanu, three primary school-cum-community halls in the neighbouring villages of Dahanu and

distributed educational and teaching materials to students of several primary schoolsin Dahanu. The Company has also introduced a Dahanu Reliance Infrastructure Ltd.

Merit Scholarships for Engineering and Medical students of Dahanu Taluka inassociation with a social welfare agency of Dahanu. The Company also confers

annually the Best Teacher Awards to teachers of Dahanu identified for their outstanding contribution.

y As a part of the 'Adopt a Village" Programme, the Company, in association withForest Department of the Government of Maharashtra, has adopted K ainad village for its strategy of developing rural areas. Under the programme, Reliance InfrastructureLtd. assisted in constructing smokeless 'chullas' (stoves) and toilet blocks for tribalfamilies and installed photovoltaic streetlights in the village. During monsoon, theCompany supplied chlorine in plastic bottles for purification of drinking water to over 5,000 tribal community members at Dahanu. When several villages on the banks of Surya and Vaitarna rivers in Palghar Taluka where the Company's Dahanu Power Station is situated were flooded, Reliance Infrastructure Ltd. promptly responded to

the calamity and assisted over 800 families with utensils and other essential items.The Company's fire tenders played a major role in dewatering and cleaning theaffected villages.

y The Company constructed and handed over an Audiometry room to a school for thedeaf and dumb children of Dahanu. Reliance Infrastructure Ltd. constructed acommunity hall for Dahanu Municipality. When nearly 10 adults and children of Asangaon near the Company's Power Station at Dahanu were struck by food

poisoning, the Company rushed in medicines and an ambulance to the village. Thistimely help has saved the lives of the affected people. The Company participates inthe Pulse Polio Programme by providing transportation facilities to Primary HealthCentres and also to Cottage Hospital in Dahanu. Reliance Infrastructure Ltd.organized an eye camp at Dahanu for about 500 people including children. Spectacles

and medicines were provided free of cost and cataract operations were performed for the needy.

y The Company has consistently been over the years contributing to charity and welfareactivities and generously made donations to various agencies/trusts for

y New hospital complex at Girgaum, Mumbai

y Provision of air conditioners for a Leprosy Education Trust

y Providing help to poor and destitute children

y Construction of library, school room, purchase of books

y Sponsoring education and maintenance of children working as child labour

y Rendering assistance to backward areas in Maharashtra

y Conducting medical camps in rural areas

y Purchase of ambulances including cardiac care ambulances

y Betterment of socially and economically weaker sections

y Hepatitis-B Virus campaign



y Treating cancer patients

y Computer literacy among poor masses

y AIDS awareness programme

The Company in its resolve to meet its social obligations works closely with local authorities

and social welfare agencies to promote community development, by undertaking variouswelfare programmes.

PRODUCTION AND OPERATION

PRODUCT PORTFOLIO 3.0

In India, the concept of insurance was never a given a serious thought, as compared to other

countries. People still are under insured, life insurance premia to Gross Domestic Product

(GDP) ratio is a mere 1.4% as compared to a healthier rate of 8% amongst other developing

countries. The reason being lack of awareness and opportunities combined with poor state of

services provided.



VARIOUS PRODUCTS OF RELIANCE LIFE

There are two categories of Insurance policies

1. Life Insurance

2. General Insurance.

RLI deals with life insurance policies. For different customers there are different

products. As a single shoe can¶t fix into all consumers, similarly a single policy can¶t

satisfy all kinds of consumers.

Here we are dealing with only policies, which deals with individuals only.

y Reliance Endowment Plan

y Reliance Special Endowment Plan

y Reliance Cash Flow Plan

y Reliance Child Plan

y Reliance Market Return Plan

I. RELIANCE ENDOWMENT PLAN

Reliance Life Insurance¶s Reliance Endowment Plan is the key to all your financial needs. It

is an inexpensive and easy way to protect you, your family or your business.

In a nutshell this plan will keep you financially prepared for all the special occasions in your

life - your daughter¶s wedding, your child¶s 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 by the financial support that it provides.

Reliance Endowment Plan also gives you the additional benefit of participating in the

company¶s profits, which you will receive at the end of the policy period.



Reliance Endowment Plan is an endowment plan, where you decide how much you would

like to set as your sum assured based on your current financial position and your expected

future expenses. You also get to choose how long you would like your policy to operate.

Then all you need to do is pay your single premium or regular premium for the policy term.

You may choose to pay your regular premiums yearly, half-yearly, quarterly or monthly for

the policy term.

HOW IT WORKS?

As soon as you pay your single premium, or as long as you continue to pay your regular

premiums, your policy will participate in the profits of our company. This means that each

year, we will declare a bonus, the amount of which may vary from one year to the next. The

cash value of the bonuses, which you accumulate over the policy term, will be paid to you

along with the basic sum assured when it falls due.

ELIGIBILITY

Minimum Maximum

Entry Age 5 65

Maturity Age 18 75

Policy Term 535 (regular premium)

15 (single premium)

Sum AssuredRs 25,000

or as determined by the minimum premium

Rs 5,00,000

(entry age below 18 years)

No Limit(entry age 18 and above)

Premium

Rs 2,000 for annual

Rs 1,500 for half-yearly

Rs 750 for quarterly and

Rs 250 for monthly*

premium frequency

Rs 25,000 for single premium

No limit



No limit

* By salary deduction only

PREMIUM REBATES ON HIGH SUM ASSURED

Sum Assured

Premium Rebate per 1,000 Sum

Assured

Rs 1,00,000 - Rs 2,49,000 Re 1

Rs 2,50,000 - Rs 4,99,000 Rs 2

Rs 5,00,000 - Rs 9,99,000Rs 3

Rs 10,00,000 and above Rs 4

BENEFITS

On the maturity date of your policy, you will receive your full sum assured plus your accumulated bonuses till that date. In the unfortunate event of loss of life before the maturitydate, your family will receive your full sum assured plus your accumulated bonuses till thatdate.

Additional Benefits

Yes, for a marginal additional premium payment, you can opt to have the Accidental Death &

Total and Permanent Disablement Benefit, the Critical Condition Benefit and/or Term Life

Insurance Benefit.



These riders may be attached to your policy at the beginning or at any policy anniversary

during the term of your policy, subject to under-writing conditions prevailing at that time.

Please note that these riders are not available if you choose our single premium plan.

Loan Facility

If you need to fund any unexpected requirements, we may grant you a policy loan of up to

90% of the surrender value of the policy, based on the terms and conditions at that time.This

facility is available on your regular premium plan once your policy acquires a paid-up value.

This facility is available immediately, in case of the single premium plan. Interest will be

charged on any outstanding loan at a rate of interest set by us, from time to time.

Tax Benefits

There is the usual exemption from tax, for premiums paid, as per the IT Act. The money you

have invested earns interest and comes to you in the form of terminal benefits and Bonus,

without the insecurities attached to the ups and downs of the capital markets. Further, at

Reliance Life Insurance, we offer you the best of courtesy, prompt service and a high level of

financial security.

II. RELIANCE SPECIAL ENDOWMENT PLAN

This insurance policy is designed for people who wish to combine savings with extended

security. The unique feature of this policy is that life protection continues for five years after

you have stopped the payment of premium. Payment of sum assured at the end of premium

paying term and extension of life cover thereafter for the full sum assured for a period of 5

years, are characteristics of the policy.

The special benefit under this policy is that it ensures securing a fund for the future when it

is most needed and gives much needed financial security for the family.

The unique feature of this policy is that the risk cover continues for the full sum assured for

an extended period of 5 years even, after payment of the full sum assured at the end of the

premium paying term.



This policy also participates in the profits. Bonus is compounded yearly (i.e. bonus declared

in the previous year earns bonus in the next year) and is payable at the end of the policy term.

HOW DOES IT WORK?

You pay premium every year. The premium paying term is always 5 years less than the

policy term. On survival at the end of the premium paying term you get sum assured. On

maturity (i.e. at the end of the policy term) accumulated compounded bonuses are paid. Your

beneficiary will get sum assured plus accumulated bonuses in case of your unfortunate death

before the premium paying term. If death happens after the premium paying term but before

the policy term, your beneficiary will get one more sum assured plus accumulated bonuses.

BENEFITS

y Survival Benefits- On survival at the end of the premium paying term you get the

sum assured.

y Maturity Benefit- The full sum assured under the policy will be paid at the end

of the premium paying term instead of waiting till the maturity of the policy, that

is, a full five years in advance. Again, at the end of the policy term, the full

bonuses will be paid.

y Rider Benefits-

i.) Accidental death & total and permanent disablement benefit rider-

Subject to certain conditions, if death of the policy holder is caused by an

accident, an additional lumpsum is payable

ii.) Critical illness rider- This benefit provides a lump sum payment in the event of a

specified serious illness like a stroke or heart attack suffered by the Life Assured.

Loan Facility

Loans can be taken against the surrender value of the policy, after three years¶ premiums

have been paid. This benefit comes to you without taking away your valuable life cover.



Tax Benefits

There is the usual exemption from tax, for premiums paid, as per the IT Act. The money you

have invested earns interest and comes to you in the form of terminal benefits and Bonus,

without the insecurities attached to the ups and downs of the money market. Further, atReliance Life Insurance, we offer you the best of courtesy, prompt service and a high level of

financial security.

III. RELIANCE CASH FLOW PLAN

This insurance policy is designed for those who have a recurring need for reinvestment in

business or look for short-term investment channels. The advantage of the policy is that they

need not part with a sizable amount of money at any one time, but create, through regular

premium payments, a periodic return of lump sums which become available for reinvestment

at 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.

The special benefit under this policy is that it ensures liquidity through a periodical return of

a specified amount of money, once in every 3 years. It averts the necessity to look elsewhere

for loan facilities.

A unique feature of this policy is that the risk cover continues for the full sum assured even

though the periodical payments are being made. This policy also participates in the profits

and is eligible for bonus.

LIMITING CONDITION

The minimum amount for which a Reliance Cash Flow Plan policy can be taken is Rs.25,

000. There is also a limitation on the minimum premium paying term, which is 7 years, while



the maximum term is 34 years. An important point to note is that since periodical payments

are available, it will not be necessary for you to raise a loan. Hence, there is no provision for

granting a loan under this policy.

BENEFITS

You receive the first payment at the end of the 4th year and subsequent payments at

intervals of 3 years. The entire vested bonus is paid along with the last installment on

the date of maturity of the policy.

The full sum assured under the policy along with accrued bonuses up to the date of

death, will be paid immediately. The installment amounts already paid will not be

deducted from the claim amount.

Accidental Benefits - Subject to certain conditions, if death of the policyholder is

caused by an accident, an additional lump sum is payable.

Critical illness benefits- This benefit provides a lump sum payment in the event of a


Tax Benefits - , there is the usual exemption from tax, under Section 80C for

premiums paid, as per the IT Act, 1961. The money you have invested earns interest

and comes to you in the form of terminal benefits and Bonus, without the insecurities

attached to the ups and downs of the money market.

All your policy benefits, which you receive, are exempt from tax under section 10(10D) of

the IT Act, 1961

Above all, at Reliance Life Insurance, we offer you the best of courtesy, prompt service and a

high level of financial security.



IV. 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 of money. This is especially true when

it comes to paying large sums of money for higher education as and when your son or daughter is studying to become an Engineer, a Doctor or specialize in some other field, or is

perhaps planning to go abroad.

This money is payable in equal installments over the last 4 years of the policy term.

A unique feature of this policy is that the risk cover continues for the full sum assured

even though the periodical payments are being made. This policy also participates in the

profits for the full term of the policy

LIMITED CONDITIONS

Any healthy male or female with adequate income, who has completed the age of 20 and is

not older than 60 is eligible for this plan. The minimum amount for which a Reliance Child

Plan policy can be taken is Rs.25, 000. There is also a limitation on the minimum term, which

is 5 years, while the maximum term is 20 years.

BENEFITS

The sum for which you have taken the Reliance Child Plan policy will be paid to you

in four equal installments during the last four years of the policy. You will also get

full bonuses along with your final installment.

An amount equal to the sum for which you have taken the policy will be paid to your

family immediately. This will not be affected by any survival benefits already

released. This will also not affect the four installment amounts and bonus payable and

that will be paid as provided for, in case death claim occurs earlier.

Accidental Benefits - Subject to certain conditions, if death of the policyholder is

caused by an accident, an additional lump sum is payable.

Critical illness benefits- This benefit provides a lump sum payment in the event of a




Tax Benefits - , there is the usual exemption from tax, under Section 80C for

premiums paid, as per the IT Act, 1961. The money you have invested earns interest

and comes to you in the form of terminal benefits and Bonus, without the insecurities

attached to the ups and downs of the money market.

V.) RELIANCE MARKET RETURN PLAN

The course of your life can change with time. But then, it is still your life.What you need is a

sound financial plan to take care of your investment needs and a sound insurance plan to

cover life risks. How about tossing a coin that gives heads on both sides! You could look for

a single plan that takes care of your investment and insurance needs.

Good returns from a sound investment and the security of life cover with one basic

investment plan, is the most cost effective and profitable financial solution. A unit-linked

insurance plan helps you invest your money in various investment funds and enjoy

investment benefits and insurance benefits at the same time.

Your money is precious to you. The worth of money depends on how you make it grow, how

you make the most of market conditions. To get the best returns you can invest in bank

deposits, bonds, shares and other investment instruments. While fixed income investment

instruments provide you with security, this income is still susceptible to fluctuations in

inflation. To maximise your returns, in the long term perspective, you cannot ignore the high

returns and buffer from inflation that the equity market offers. One has to balance the securityoffered by fixed income securities and the high returns offered by the equity markets. A

sound investment plan has to provide you with options to protect you from market risks and

the effects of inflation. Do you have the expertise to do so? Our experienced fund managers,

provide you with this expertise and the logistics to guide you through the changing world of



the money markets and help you reap better returns in the future. With added insurance

cover, you have a coin that tosses-up head both ways- that is Reliance Market Return Fund.

HOW IT WORKS?

Reliance Market Return Fund is the unit-linked product that helps you invest in the financial

markets in a combination of investment instruments of your choice. You can enjoy the

returns from the markets without the trouble of monitoring and managing your own

investment portfolio and keeping track of the market movements. At the same time your

investment premiums provide you with insurance cover. Reliance Market Return Fund unit-

linked insurance plan provides you with a basket of fund options that balances your return

and risk exposure while providing life cover at the same time.

Reliance Market Return Fund is a unit-linked investment plan that invests your premiums in a

variety of investment instruments. Your premiums, regular or one-time, are invested in the

different types of funds after deducting charges .The amount you invest is expressed in units.

Based on the performance of the funds, the value of your units will vary. Reliance Market

Return Fund provides you with the option to combine returns from fixed income investments

and participate in the equity markets so that you can maximize the returns from your

investments. You can choose from the different fund options we offer in the way you best

desire. At the same time, in line with the premiums that you pay, you can specify a sum for

insurance and enjoy the benefits of life insurance cover. Reliance Market Return Fund is a

two-in-one insurance and investment plan that provides you returns and life cover.

AVAILABLE INVESTMENT FUNDS

Reliance Market Return Fund unit-linked insurance plan offers four tailored investment

funds.

Capital Secure Fund ± This fund offers steady returns for very little risk. Your funds are

invested 100% in bank deposits, government bonds and debt instruments that offer financial

security.

Balanced Fund ± In this fund, a major portion of your funds are invested in fixed securities

while a small percentage is invested in the equity market which is exposed to market

movements.



Growth Fund - This fund offers a greater portion of investment in the equity market. The

greater exposure to the equity market means that returns will be higher, but with the attendant

higher level of risk.

Equity Fund ± This fund offers a totally equity based investment option. Your returns depend

entirely upon the performance of the equity market. The higher risk of this portfolio means

that expected returns will also be higher.



The allocation of assets and the risk and return levels for each investment fund are given in

the table below:

Fund Type Time Horizon Risk LevelLevel of

Returns

Asset Allocation

Fixed Interest

Securities

Not less than

Equities

Not more than

Capital Secure Short Low Low 100% 0%

Balanced MediumLow-

MediumMedium 80% 20%

Growth LongMedium-

highMedium 60% 40%

Equity Long High High 0% 100%

UNITS

The premiums you pay are invested into the funds according to your choice. Your investment

is expressed in terms of units, the value of which varies according to the performance of the

funds. Unit prices are calculated regularly for each fund using the following formula:

Unit Price =

Total market value of assets plus current assets less current liabilities lessprovisions

Total number of units on issue



When you pay premiums, we will allocate your units using the next following unit pr ice that

we determine.

When we pay you benef its, we will cancel units at the next available unit pr ice.

The market value of assets is arr ived at based on the information from stock exchanges,

f inancial institutions and market makers.

PR E

Sin

l¡ ¢ £ ¡ ¤

iu ¤

Minimum Rs 25¥ 000

¦ ¡

ul§ £ ¢ £ ¡ ¤

iu ¤

Minimum Instalments

Annual Rs 10 ̈ 000

Half Yearly Rs 5 ̈ 000

Quarterly Rs 2 ̈ 500

Monthly Rs 1 ̈ 000 (for salary deduction only ©

Rs 2 ̈ 500 (standing order/credit card)

Top-up

iu

Minimum Rs 2 500



Regular Premium

You can select a regular payment mode of your choice to build up your unit account. Such

regular payments continue till the maturity date of the policy.

We will invest your premiums in the investment funds of your choice in the proportions that

you specify subject to regulatory norms. Under current regulations, you may invest up to a

maximum of 20% of your premiums into the Capital Secure Fund at the commencement of

your policy.

Single Premium

You can start your unit account with a single premium payment of Rs 25,000 or more. We

will invest your premiums in the investment funds of your choice in the proportions that you

specify subject to regulatory norms. Under current regulations , you may invest up to a

maximum of 20% of your premium into the Capital Secure Fund at the commencement of

your policy.

Top-up Premiums

When you have additional funds, you can enhance your unit account with top-up premiums

of Rs 2,500 or more. You may make top-ups on your regular or single premium policy at any

time to further build your portfolio. These top-ups do not affect your sum insured; they

simply increase your investment in the funds.

.

WITHDRAWLS

No. of partial withdrawals per year for regular/single premium options 2

Minimum period the policy should be in force for partial withdrawals 1 year

Minimum unit account balance after each withdrawal Rs 10,000

The withdrawal option provides you with the right amount of liquidity such that you can

draw from your unit account without disturbing the insurance cover you enjoy. Once the

policy is in force for at least a year, you can make partial withdrawals from your unit account.

RETURNS & BENEFITS



When your policy matures you will receive the full value of your unit account on the matur ity

date. The value of your unit account is determined entirely by the performance of the funds

you invest in.

Var iabl R

rns

Your unit account can attract greater returns depending on your choice of investment funds

and their performance in the market.

Under current tax legislation, the earnings on your investments accumulate free of tax.

B i

R eliance Market R eturn Fund gives you f lexi bility in the choice of investments and in

the life cover that is best suited to your needs. You also have the freedom to change

your options according to your changing pr ior ities in the course of life

Death Benef its- If the life insured dies before the matur ity date, the policy holder / benef iciary

will receive the full value of the unit account or the sum insured whichever is higher.



The advantage in this policy is that we recalculate your insurance charge each month, so as

your unit account grows in value, your insurance charge reduces. That is, you only pay

insurance charges for the decreasing sum at r isk as is shown in the graph below.

Additi nal Benef its- If you wish to en joy additional insurance benef its, You may select the

Accidental Death and Total and Permanent Disablement Benef it r ider that this policy offers,

for regular premium payment option. Accidental death and Total and Permanent Disablement

benef it doubles the life coverage in case of death or permanent total disability dueto an

accident at a very nominal additional cost. The maximum cover offered is R s 50,00,000

In case of total and permanent disability, 1/10th of the sum insured will be paid at the end of

each year for ten years. If the total and permanent disability benef it has commenced, then theaccident cover will cease.

In case of matur ity or on death of the life assured, af ter the payment of any installments of the

permanent and total disability benef it, the remaining unpaid installments, if any, will be paid

in one lump sum.

Total and permanent disability means disability caused by bodily in jury which causes

permanent inability to perform any occupation or to engage in any activities for remuneration

or prof its. This disability should last for at least 6 months beforebeing eligi ble for total and

permanent disability benef its.

Total and permanent disability also includes the loss of both arms or both legs or one arm and

one leg, or of both eyes. By loss of arms or legs we mean dismemberment by amputation of

the entire hand or foot. Loss of eyes means entire and irrecoverable loss of sight.



Tax Benefits- Premium, net of health related benefit (eg. Critical Illness) premium paid, up

to a maximum of 20% of the sum assured will be eligible for income tax rebate under section

80C.

Provided, the premium in any of the years during the policy term does not exceed 20% of thesum assured, your death, maturity and withdrawal benefits are eligible for tax relief under

section 10 (10D).

Also remember that if the policy lapses or you terminate the policy before you have paid

premium for two years in case of a regular premium plan or two years have elapsed in case of

a single premium plan, the tax benefits availed shall be deemed to be tax payable.

UNIT ACCOUNT

The following diagram shows that your premiums and investment earnings are used to

purchase units, which are directed to your unit account. Converting your units into cash once



again pays out any charges or benef its.

HOW SAFE IS THE INVEST ENT

1.

he investments made in the unit funds are sub ject to market risks and any other risks

whether financial or otherwise that are prevalent at any point in time.

2.

he unit price is a reflection of the financial and e uity/debt market conditions and can

increase or decrease at any time due to this.

3. Benefits payable under the policy will be made according to the tax laws and other

regulations in force at that time.

4.

here are no guarantees for any fund of any kind under this policy. The benefit payable on

maturity will be e ual to the value of your units.

5. The name of the funds in no way indicates the returns derived from them.



COMPETITORS AND MARKET SHARE

Following is the list of all life insurance company granted permission by IRDA.

1. Bajaj Allianz Life Insurance Company Limited

2. Birla Sun Life Insurance Co. Ltd

3. HDFC Standard Life Insurance Co. Ltd



4. ICICI Prudential Life Insurance Co. Ltd.

5. ING Vysya Life Insurance Company Ltd.

6. Life Insurance Corporation of India

7. Max New York Life Insurance Co. Ltd

8. Met Life India Insurance Company Ltd.

9. Kotak Mahindra Old Mutual Life Insurance Limited

10. SBI Life Insurance Co. Ltd

11. Tata AIG Life Insurance Company Limited

12. Reliance Life Insurance Company Limited.

13. Aviva Life Insurance Co. India Pvt. Ltd.

14. Sahara India Life Insurance Co, Ltd.

15. Shriram Life Insurance Co, Ltd. 0

16. Bharti AXA Life Insurance Company Ltd.

17. Future Generali Life Insurance Company Ltd.

18. IDBI Fortis Life Insurance Company Ltd.

19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd

20. AEGON Religare Life Insurance Company Limited.

21. DLF Pramerica Life Insurance Co. Ltd.

22. Star Union Dai-ichi Life Insurance Comp. Ltd.

LIC is the oldest player in the market . It is the market leader. However, some other companies also offer good innovative

products. All insurance companies are regulated by the IRDA and are equally reliable.

MARKET SHARE

"Reliance Life Insurance, a part of Reliance Capital of the Reliance Anil Dhirubhai Ambani

Group (ADAG), registered a record high market share of 14.51 percent in March 2010 and a

10.5 percent growth for the 2009-10 financial year."



STRENGTH AND WEAKNESS



SUGGESTIONS²DISCUSS WITH MANGEMENT



INTRODUCTION TOPIC

Analysis of unit link plans



UNIT LINK PLANS

A unit-linked insurance plan (ULIP) is a type of life insurance where the cash

value of a policy varies according to the current net asset value of the underlying

investment assets. It allows protection and flexibility in investment, which are

not present in other types of life insurance such as whole life policies. The

premium paid is used to purchase units in investment assets chosen by the

policyholder.

ULIP came into play in the 1960s and is popular in many countries in the world.

As times progressed the plans were also successfully mapped along with lifeinsurance need to retirement planning. In today's times, ULIP provides solutions

for insurance planning, financial needs, and many types of financial planning

including children¶s marriage planning.

In India investments in ULIP are covered under Section 80C of IT Act.

However, the concept of having an investment and insurance by the same

instrument was challenged by the market regulator SEBI which took up the

matter to the Supreme Court of India .The Indian government brought down

curtains on the two-month long tussle between the regulators by ruling that Unit-

linked Insurance Products (Ulips) will be governed by the Insurance Regulatoryand Development Authority (IRDA)

Key Features

ULIP distinguishes itself through the multiple benefits that it provides to theconsumer.The plan is a one-stop solution providing:

· Life protection· Investment and Savings· Flexibility- Adjustable Life Cover - Investment Options· Transparency· Options to take additional cover against- Death due to accident- Disability- Critical Illness



- Surgeries· Liquidity

· Tax planning

Unit Linked Insurance Polices (ULIPS)

Unit linked guidelines were notified by IRDA on 21st December 2005. The main

intent of the guidelines was to ensure that they lead to greater transparency and

understanding of these products among the insured, especially since the

investment risk is borne by the policyholder. It is the endeavor of IRDA to enable

the buyer to make the most informed decision possible when planning for

financial security. We hope the following FAQs will enable a better insight to all

buyers about the character and features of Unit linked Products.

1.What is a ULIP?

ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life

insurance policy which provides a combination of risk cover and investment.

The dynamics of the capital market have a direct bearing on the performance of

the ULIPs. REMEMBER THAT IN A UNIT LINKED POLICY, THE

INVESTMENT RISK IS GENERALLY BORNE BY THE INVESTOR.

2.What is a Unit Fund?

The allocated (invested) portions of the premiums after deducting for all the

charges and premium for risk cover under all policies in a particular fund as

chosen by the policy holders are pooled together to form a Unit fund.

3.What is a Unit?

It is a component of the Fund in a Unit Linked Policy.

4.W

hat Types of Funds do ULIP Offer?

Most insurers offer a wide range of funds to suit one¶s investment objectives, risk

profile and time horizons. Different funds have different risk profiles. The

potential for returns also varies from fund to fund.

The following are some of the common types of funds available along with an



indication of their risk characteristics.

5. Are Investment Returns Guaranteed in a ULIP?

Investment returns from ULIP may not be guaranteed.´ In unit linked

products/policies, the investment risk in investment portfolio is borne by the

policy holder´. Depending upon the performance of the unit linked fund(s)

chosen; the policy holder may achieve gains or losses on his/her investments. It

should also be noted that the past returns of a fund are not necessarily indicative

of the future performance of the fund.

6.What are the Charges, fees and deductions in a ULIP?

ULIPs offered by different insurers have varying charge structures. Broadly, the

different types of fees and charges are given below. However it may be noted

that insurers have the right to revise fees and charges over a period of time.

Premium Allocation Charge

This is a percentage of the premium appropriated towards charges before

allocating the units under the policy. This charge normally includes initial and

renewal expenses apart from commission expenses.

Mortality Charges

These are charges to provide for the cost of insurance coverage under the plan.

Mortality charges depend on number of factors such as age, amount of coverage,

state of health etc

Fund Management Fees

These are fees levied for management of the fund(s) and are deducted before

arriving at the Net Asset Value (NAV) .

Policy/ Administration Charges

These are the fees for administration of the plan and levied by cancellation of

units. This could be flat throughout the policy term or vary at a pre-determined

rate.



Surrender Charges

A surrender charge may be deducted for premature partial or full encashment of

units wherever applicable, as mentioned in the policy conditions.

Fund Switching Charge

Generally a limited number of fund switches may be allowed each year without

charge, with subsequent switches, subject to a charge.

Service Tax Deductions

Before allotment of the units the applicable service tax is deducted from the risk

portion of the premium.Investors may note, that the portion of the premium after deducting

for all charges and premium for risk cover is utilized for purchasing units

8. How much of the premium is used to purchase units?

The full amount of premium paid is not allocated to purchase units. Insurers

allot units on the portion of the premium remaining after providing for various

charges, fees and deductions. However the quantum of premium used to purchase

units varies from product to product.

The total monetary value of the units allocated is invariably less than the amount

of premium paid because the charges are first deducted from the premium

collected and the remaining amount is used for allocating units.

9. Can one seek refund of premiums if not satisfied with the policy, after

purchasing it?

The policyholder can seek refund of premiums if he disagrees with the terms

and conditions of the policy, within 15 days of receipt of the policy document

(Free Look period). The policyholder shall be refunded the fund value

including charges levied through cancellation of units subject to deduction of

expenses towards medical examination, stamp duty and proportionate risk

premium for the period of cover.



10.What is Net Asset Value (NAV)?

NAV is the value of each unit of the fund on a given day. The NAV of each

fund is displayed on the website of the respective insurers.

11.What is the benefit payable in the event of risk occurring during the term of

the policy?

The Sum Assured and/or value of the fund units is normally payable to the

beneficiaries in the event of risk to the life assured during the term as per the

policy conditions.

12.What is the benefit payable on the maturity of the policy?

The value of the fund units with bonuses, if any is payable on maturity of the

policy.

13. Is it possible to invest additional contribution above the regular premium?

Yes, one can invest additional contribution over and above the regular

premiums as per their choice subject to the feature being available in the

product. This facility is known as ³TOP UP´ facility.

14.Whether one can switch the investment fund after taking a ULIP policy?

Yes. ³SWITCH´ option provides for shifting the investments in a policy

from one fund to another provided the feature is available in the product.

While a specified number of switches are generally effected free of cost, a fee

is charged for switches made beyond the specified number.

15. Can a partial encashment/withdrawal be made?

Yes, Products may have the ³PartialWithdrawal´ option which facilitates

withdrawal of a portion of the investment in the policy. This is done through

cancellation of a part of units.



16.What happens if payment of premiums is discontinued?

a) Discontinuance within three years of commencement ± If all the

premiums have not been paid for at least three consecutive years from

inception, the insurance cover shall cease immediately. Insurers may give

an opportunity for revival within the period allowed; if the policy is not

revived within that period, surrender value shall be paid at the end of

third policy anniversary or at the end of the period allowed for revival,

whichever is later.

b) Discontinuance after three years of commencement -- At the end of the

period allowed for revival, the contract shall be terminated by paying the

surrender value. The insurer may offer to continue the insurance cover, if

so opted for by the policy holder, levying appropriate charges until the

fund value is not less than one full year¶s premium.When the fund value

reaches an amount equivalent to one full year¶s premium, the contract

shall be terminated by paying the fund value.

17.What information related to investments is provided by the Insurer to

the policyholder?

The Insurers are obliged to send an annual report, covering the fund

performance during previous financial year in relation to the economic

scenario, market developments etc. which should include fund performance

analysis, investment portfolio of the fund, investment strategies and risk

control measures adopted.

In case, you need any clarification, you may address your query to the

following e-mail id:

[email protected]

Disclaimer:

The above material is provided for general information only and do not

constitute legal or other professional advice. This information is current at the

date of publication but may be subject to change without notice and accordingly,

may not be up to date at the time of viewing. Information specific to a product



may be obtained from the concerned Insurer

Reliance Secure Child Plan

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS

BORNE BY THE POLICYHOLDER.

y Do you see your child becoming a trailblazer?y Will they create the ultimate symphony or give sports a new dimension?

Our children may just be the ones to end the arms race and wipe out poverty from the face of the Earth. But for them to be able to aim for the skies, YOU NEED TO ACT NOW!

Introducing Reliance Secure Child Plan - a unique life insurance cum savings plan. Startsaving from now and secure the future of your child.

Key Features ± Reliance Secure Child Plan:

Insurance cover on the life of child

Money at critical milestones in your child's career path - college education,

higher education, marriage

Your child is completely protected - we will continue to pay the premiums

even if you are not alive

Life time income to child in the event of disability

Return Shield option to protect your investment returns

Liquidity in the form of partial withdrawals

Capital guarantee available on maturity and on death of the child under

Regular Premium basic policy

Option to package with Reliance Accidental Death and Total and Permanent

Disablement Rider, Reliance Critical Conditions Rider and Reliance Term

Life Insurance Benefit Rider.

Loyalty addition of 1% of the premiums paid under basic plan and top ups

.



Reliance Money Guarantee Plan

Unbeatable protection For your investments

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO ISBORNE BY THE POLICYHOLDER.

Yes, it¶s a trio the pace setter plan which promises Life Protection, an opportunity to gaincontrol over your investments along with protection of downside risk!

For the select few like you, the Reliance Money Guarantee Plan is Unit Linked productaddressing comprehensive need to strike that perfect balance of Protection and Savings, thatyou deserve as you grow successfully. The Reliance Money Guarantee Plan is a Regular Premium Unit Linked Policy which guarantees the entire premium (including premiums for top-ups) paid by you. This is a plan which helps you reap all the benefits of a rising marketsimultaneously protecting you from the downside risk of the market.

Key Features

Capital Guarantee: The sum of all premiums paid is guaranteed on maturity or on

death before the maturity.

Capital Guarantee is available on both the basic premiums as well as on top-up

premiums

Unique Return Shield feature to protect your returns

Choice to invest from 3 pre-packaged investment fund options

Unmatched flexibility through our µExchange Option¶ to move between the RelianceLife Insurance Unit Linked products offered, as you grow up the ladder

Liquidity in the form of partial withdrawals from top-up fund

Option to package with Accidental Death & Disability and Term Insurance riders



BENEFITS OF UNIT LINK PLANS

The various benefits of Unit Linked Insurance Plans (ULIP) are :

1. High growth potential:

The money invested by the investor has potential for very high growth because they are

linked to the stock market. This makes the company to get good return because the company

gets commission for the purchase of the units. The investor also gets good return because the

money invested grows at a very fast pace compared to many other investments.

2. Life risk cover:

The Unit Linked Insurance Plans also give risk cover for the person who has invested in the

insurance plan. This is another of the benefits of Unit Linked Insurance Plans. This is because

when the person invests, along with the investment, the person also gets the life cover. The

insurance company takes some of the amount as payment for the life cover and this is the

benefit that the insurance company gets. The remaining amount that is paid by the investor is

used to purchase the shares from the equity market.

3.No need to track:

The investor has another benefit and this is the fact that the investor need not keep tracking

the equity market for individual shares when they invest in the unit linked insurance plan.

This is because the funds are all managed by the insurance company and the individual does

not have to look at the prices and will in turn save a lot of time.

4. Premium payment flexibility:

Another important benefit that most Unit Linked Insurance Plans have is that these plans

have a flexibility in the amount of premium that is payable to the company. This is based on

the amount that the investor pays. The minimum amount is taken for the insurance and the

rest of the amount is used to purchase the shares.



These are the various advantages and benefits of the Unit Linked Insurance Plans. The

person who purchases these plans have to research and decide which is the best unit

linked plan that will work for them and they should also decide on their risk appetite

and then invest in these plans to get maximum benefit.



OBJECTIVES OF THE STUDY

Project study without objective is body without soul.The objective of my study in reliance

life insurance ltd,Gwalior are listed under here:

y To analyse the plans and policies of reliance life insurance ltd.

y To make aware of an outstanding investment opportunity in a wide range of

investment fund backed by reliance life insurance india¶s leading fund manager.

y To provide valuable protection in case of the insured parent¶s unfortunate demise

y To know the satisfaction/dissatisfaction level of consumer toward the company.

y To provide the information about access to your accumulated fund before maturity.

y Find out uninsured person.

y To provide information related to plans and policies of the company.



RESULTS AND DISCUSSION

My training in reliance life insurance pvt ltd gave me a lot in terms of knowledge and

experience in the field of insurance.My summer internship in reliance life insurance taught

me many things a few of them are:-

Understanding about how the policies are being sold.

How to talk to customers.

Techniques of convincing the people towards insurance policies.

Locating the target customer.

Knowledge about insurance sector and its governing body.



CONCLUSIONS



relationships.

The insurance sector was opened up for private participation four years agoand FICCI has

doing yeoman service to the development of this sector by facilitating exchange of views

between the industry, policymakers, and the regulator through the annual conference. This

has provided a forum to take stock of the developments and discuss the future course of

action. These annual conferences before and after the reforms in the sector have provided

useful inputs to the policy makers and the regulatory body and the FICCI deserves

appreciation for the professional manner in which these conferences are organized and should

be legitimately proud of the contribution made by it in the growth and development of

insurance sector.



SUGGESTIONS

1) The procedure of becoming RELIANCE LIFE INSURANCE Insurance Advisor Is very

long so efforts to reduce number of training hours should be made.

2) Various companies are paying OR sharing the cost of getting a license, (which attracts majority

of people who wants to become advisors) therefore should give a consideration to the same.

3) Various companies are paying fixed salary when an advisor reaches its targets, which attracts the

potential advisors to opt for those companies, Therefore RELIANCE LIFE INSURANCE

should consider paying some amount as fixed salary which will considerably increase the

response.

4) Behavior towards trainees should improve in terms of amount of time spent with them as well as

clearing various aspects of project in the very beginning.



REFERENCES

y http://www.economywatch.com/indianeconomy/indian-insurance-sector.html

y http://www.businesschambers.com/sh.cfm?sq=India%20Insurance%20Companies

y http://www.reliancelife.co.in

y http://www.reliancelife.co.in/aboutus.asp

y www.reliancecapital.co.in/

y www.reliancecapital.co.in/rcamhtml/rcam/images/ADAappointmentaschairman-

19June2005.pdf

y LIFE FIRST ±magazine for Life Insurance Firms

y www.irdaindia.org

y www.irda.gov.in/

y www.iii.org

MINESH TRAINING PROJECT (2)

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