EXECUTIVE SUMMARY

This project, which was taken by me, on behalf of RELIANCE LIFE INSURANCE COMPANY
LIMITED, Jansath, was mainly focused on Recruiting Financial Advisors for enhancing the network
of industry.
The idea was mainly focused on how the network distribution can be enhanced by focusing on the
right target group which can strengthen the companys foothold and can increase business and who are
actually to become companys ambassadors in the common masses focusing and catering to the
business customers of the company.
The Network Distribution as said here refers to the Financial Advisors who on behalf of the company
promote companys products among the customers and create awareness for the companys image.
The company as having the 5 th largest sales force among Private Players follows a strict code of
recruitment as the Financial Advisors or the sales persons as they are going to be companys advisors
or ambassadors as said earlier.
The project not only emphasized on enhancing network distribution or the sales force but also
understanding the human psychology regarding insurance and about Reliance Life Insurance and
Private Players in Insurance Sector. The project was partly done in urban Delhi and partly in its
suburban.

OBJECTIVE
The objective of the project was recruiting and building a human capital through a strict
way for nourishing the company in the long run and improve its position in the market
and increase its sale. The main idea was getting a right profile candidate rather than a
dozen advisors who are worthless. A single person who is extrovert with good contacts
and selling skills could do a wonder and can become an asset because this industry
demands professionalism, instant decision making, constant innovation, and
understanding of human psychology. This project was both qualitative and quantitative.
Because while recruiting people ,I could not sacrifice the qualitative aspect for the
quantitative aspect so on many occasions I had to cancel my appointments just after
making telephonic conversations.

INDUSTRY PROFILE
INSURANCE INDUSTRY AN OVERVIEW
Insurance may be described as a social device to reduce or eliminate risk of life and property. Under
the plan of insurance, a large number of people associate themselves by sharing risk, attached to
individual. The risk, which can be insured against include fire, the peril of sea, death, incident, &
burglary. Any risk contingent upon these may be insured against at a premium commensurate with the
risk involved.
Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in
exchange for a fixed sum called premium to pay the other party happening of a certain event.
Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay
the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the
help of insurance, large number of people exposed to a similar risk makes contributions to a common
fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good.
This is the current scenario of the global Insurance Industry and now, let us looks at the basic functions
of insurance. While conceding that insurance is a risk-transfer tool, corporate should be made to
understand that it does not suffice merely to transfer the risk but they have to participate in the effort of
loss prevention. New but they have to participate in the effort of loss prevention. New techniques and
technology have to be adopted from time to time in order to improve performance and this has special
significance to the order to improve performance and this has special significance to the Indian
Insurance Industry. The Indian insurance industry has always suffered from drawbacks like lack of
proper understanding of the purpose of insurance, lopsided growth etc. With the opening up of the
industry, it is hoped that the new entrants with their better channels would spread the real message of
insurance, leading to a dynamic growth. Emphasis should be on finding new technological avenues,
although it has been observed world over that for selling insurance, an eye-to-eye contact is essential.
Internet can be
Used for better servicing which would eventually, lead to business development. With the entry of
foreign companies into the insurance arena, a fresh life has been inducted and there is a great deal of

optimism in the air that the market would automatically create a vibrant competition leading to the
customer being the ultimate winner.
HISTORICAL ASPECTS OF INSURANCE IN INDIA
Insurance activity in India is going on for more than 150 years. In India, life insurance in its modern
form was brought for the first time by Britishers. The Oriental Life Insurance Company started in
1818 in Calcutta was the first to be founded in India by Europeans to help the widows of their
community. The general insurance business in India, on the other hand, can trace its roots in Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British. The year 1870, saw the birth of first Indian insurance company namely,
Bombay Mutual Life Assurance Society. The basic aim of this company was to insure Indian lives at
normal rate since in the earlier period. Indian lives were treated as subnormal and loaded with an extra
premium of fifteen to twenty percent. However, right up to the end of 19 th century, the foreign
insurance companies in India had an upper hand in matters of Insurance business. Insuring Indian lives
with 10 percent of extra premium was a common practice prevalent in those times. The Indian Life
Assurance Companies were the first to regulate the life insurance business in 1912. In 1928, the Indian
Insurance companies act enabled the government to collect statistical information about both life and
non-life insurance business. Later, the insurance Act of 1938 was passed and Department of Insurance
under authority of superintendent of insurance was established for the administration of the Act. Up to
1939, 199 companies were working in India. However, the period 1939-55 was marked by:
World War II resulting in hasty premium adjustments by Indian companies.
Series of amendments to the insurance Act, 1938.
Appointment of a committee under the Chairmanship of Sir Cowasji Jehanger to enquire
into and to recommend measures to check certain trends and undesirable features in the
management of insurance companies.
The findings of the sub-committee on insurance under the National Planning Commission
headed by Pt. Jawaharlal Nehru.
Partition of India.
De-valuation of rupee on September 18, 1949.

 The Insurance Amendment Act.

Interest yield sagging to the lowest lend of three per cent and remaining at that level over
1947-1949.
The rate war and cut throat competition between insurance companies.
The recommendation of the ruling political party, the Indian National Congress, to the
government that the life sector insurance be nationalized, and
The founding of the Jiwanlal Chimanlal Setawad Memorial-The Federation of Insurance
Institutes.

About IRDA
Structure

The Life Insurance Council will have an Executive Committee of 16 members of

which 2

will be from the IRDA and the rest from licensed life insurers

The Committee will set up standards of conduct and practices for efficient customer service,
advise IRDA on controlling insurers expenses and serve as a forum that helps maintain healthy
market conduct

It will create and manage a process for agent examination and certification

The Life Insurance Council is funded by the Life Insurers in India

The Purpose

The Life Insurance Council seeks to play a significant and complementary role in transforming
Indias life insurance industry into a vibrant, trustworthy and profitable service, helping the
people of India on their journey to prosperity.

Its mission:

To function as an active forum to aid, advise and assist insurers in maintaining high
standards of conduct and service to policyholders

Advise the supervisory authority in the matter of controlling expenses

Interact with the Government and other bodies on policy matters

Actively participate in spreading insurance awareness in India

Take steps to develop education and research insurance

Help bring to India the benefit of the best practices in the world

The Council will

Strive for a positive image of the industry through media, forums and opinion- makers and
enhance consumer confidence in the industry

Assist the industry in maintaining high standards of ethics and governance

Promote awareness regarding the role and benefits of life insurance

Organize structured, regular and proactive discussions with Government, lawmakers and
Regulators on matters relevant to the contribution by the life insurance industry and act as an
effective liaison between them

Conduct research on operational, economic, legislative, regulatory and customer-oriented

issues in life insurance, publish monographs on current developments in life insurance and
contribute to the development of the sector

Set up the Mortality and Morbidity Information Bureau (MMIB) and take an active role in its
functioning

Set up similar organizations for the benefit of the life insurance industry

Act as a forum of interaction with organizations in other segments of the financial services
sector

Play a leading role in insurance education, research, training, discussion forums and
conferences

Provide help and guidance to members when necessary

Be an active link between the Indian life insurance industry and the global markets

Legislations & Control

Address common issues in legislation and practice. Interface with the various other regulatory
bodies on behalf of the insurance industry.

Identify regularly the important issues to be taken up with Government and/or IRDA &
PFRDA and make presentations on behalf of the industry

Prepare benchmarks for the industry in all areas of operation and help maintain high standards
of conduct, ethics and governance

Take measures to prevent practices that are detrimental to the interests of the policyholders

Training & Certification

Take up the work relating to the training, examination and certification of Agents as provided
in the Insurance Act

Play a positive role in establishing standards, training of officials and intermediaries not only in
products and sales but also other aspects relevant to the life insurance industry and lift the level
of professionalism

Conduct professional development programs in collaboration with international councils and

life insurance institutes

Education & Awareness

Launch regular insurance awareness programs

Facilitate the conducting of Continuous Development Programs for intermediaries

Provide structured regular information to the public about the industry

Launch an interactive website/Life Insurance Journals/newsletters

Organize / participate in major conferences, seminars, workshops and lectures by

Indian/visiting experts on insurance and related areas

Facilitate knowledge-exchange programs (both in India and with Councils abroad) to develop
and upgrade the skills of local insurance professionals

Co-ordinate with educational institutions in India and overseas to encourage research,

professional development courses etc.

Elevate the profession of insurance selling and that of the Advisor, to that of financial analysts
and planners through certification programs developed in conjunction with Indian and
International institutions

Establish a consumer relations cell

The Promise
Strengthening the role of the insurance sector in India and creating wealth for its people The Life
Insurance Council. A three way interaction among the insurer, the insured and Regulatory body. A
convergence of interests and the collective voice of life insurance.

In Perspective
Indian Life Insurance Industry

More than a century in India

Large mobilizations of savings next only to banks

Significant participant in the Capital Markets

Constitutes 15% of Gross Domestic Savings

Assets under management - more than Rs. 4,00,000 Crores

Invested in Infrastructure - Rs. 40,000 Crores

Employment

Employs close to 2, 00,000. Retail customers: 92%

Agency Force

1.5 million

Policies in force

Nearly 20 crores

Offices

Nearly 3000 offices across India and

growing

Growth

Penetration grew from 1.2% to 2.2% of GDP

Insurance Density grew from Rs. 280 to Rs. 600 (per capita premium)

Premium grown from Rs. 28,000 Crores to Rs. 63, 000 Crores

INSURANCE SECTOR REFORMS

The insurance sector began its reform process with the passage of the IRDA (the Insurance Regulatory
and Development Authority) bill in Parliament in December 1999. However with the setting up of
IRDA, the government has once again de-regulated the sector opening it for the private players. The
entry of private players has enabled the industry to look at alternative distribution channels. To get the
maximum pie of the premium, every insurance company is adopting new distribution and marketing
strategies. The transition of the insurance industry from a public monopoly to a competitive
environment now presents very interesting challenges both to the new players and to the customer. Not
only the new players have an opportunity to test out their various hypotheses and apply learnings from
overseas markets, the customer will have a greater choice when it comes to choosing a provider or a
solution for their needs.

BENEFIT OF INSURANCE
Insurance can be seen as a hedge against the unexpected calamities like death, theft or damage of
property due to accidents, fire etc. The insurance potential untapped means human and physical assets
unprotected and their worth unpreserved. The sense of lost worth is relatively easy to understand in the
case property. But it is difficult to view human beings from this angle. When these two things are
appreciated in their right spirit, life insurance in India will not remain simply as one more source or
avenue of savings.
The most important benefit is the identification of unexpected losses. Restoring of losses not
only rebuilds the economic viability of an organization but also strengthens the society at large. When
the uncertainty gets reduced an insured person can spend more time and energy, work with greater
concentration, resulting in higher efficiency and better performance. From the management point of

view, it is accumulation of fund for investment in the field of national priority. Accumulation of fund
stems out of a gap in in-payment timings.
This means a large amount of money remaining under the disposal of insurer for investment in
a more productive way. The other major benefit arising out of insurance is the strengthening of small
business houses. Insurance can help a small unit to get involved with those economic activities for
which resource requirement is beyond its infernally accumulated fund and/or mobilizing capacity. The
biggest beneficiary of the incoming competition in insurance will be Indian consumers. They will have
more choice of insurance schemes. At present Indians are the most deprived insurance customers in the
world, out of about 150 general insurance schemes on the global level, only 10 per cent of them are
offered by the four subsidiaries of the GIC. So through privation consumers will get wide range of
insurance products. Also claims settlement will be hassle free and customer friendly.

CHALLENGES FOR INSURANCE SECTOR

Insurance companies in India will have to develop appropriate channels to lap this huge market
as the core of insurance business hinges on an efficient distribution.
Direct marketing is one of the most successful channels of distribution in the developed
economics. It is a great way to reach a large population. So the product should be sold through
telemarketing or direct mail.
In the insurance business cost control and ability to service large number of customers are
crucial issues. So modern technology is to be adopted to handle both the services effectively.
Today customers are well equipped with information, so insurance company should reposition
different product by changing customer attitudes.
The actuary should be required to attend minimum number of seminars called continuous
professional development courses for financial control of the organization.
Distribution of existing insurance products is the main course of worry for insurance
companies in India. The insurance companies are using WBFCS, banks and housing finance.
Companies for distribution do not have much control on the agents and hence lose quality in the
distribution channel. So Banks advisory committee, representation of agency should be licensed.

10

INSURANCE INDUSTRY IN INDIA

The insurance sector in India has come a full circle from being an open competitive. Market to
nationalization and back to a liberalized market again. Tracing the Developments in the Indian
insurance sector reveals the 360 degree turn witnessed over period of almost two centuries.
Insurance was nationalized. First, the life insurance companies were nationalized in 1956, and then the
general insurance business was nationalized in 1972. Only in 1999 private insurance companies have
been allowed back into the business of insurance with a maximum of 26% of foreign holding. In what
follows, we describe how and why of regulation and deregulation. The entry of the State Bank of India
with its proposal of banc assurance brings a new dynamics in the game. We study the collective
experience of the other countries in Asia already deregulated their markets and have allowed foreign
companies to participate. If the experience of the other countries is any guide, the dominance of the
Life Insurance Corporation is not going to disappear any time soon.
The Indian insurance market, with a population of over one billion, offers tremendous opportunities
and can easily sustain 100 insurers. The development of the insurance sector will result in higher
domestic savings and investments, significant expansion of the capital market, enhanced infrastructure
financing and increased foreign capital inflow and employment.
The opening up of the Indian insurance sector has been hailed as a groundbreaking move towards
further liberalization of the Indian economy. The size of the existing insurance market is growing at a
rate of ten per cent per year. The estimated potential of the Indian insurance market in terms of
premium was around Rs3, 44,000 crores (US$86 billion) in 1999. The Indian players have tapped only
ten per cent of the market share and the remaining 90 per cent of the market remains untapped.

11

The Indian Government has recently enacted the Insurance Regulatory Development Authority Act
1999, which amends existing insurance laws dating from 1938. The Act establishes an authority called
the Insurance Regulatory Development Authority, designed to regulate the insurance sector.

THE INSURANCE INDUSTRY - WITH A NEW LOOK

Competition has well and truly set in the fast-growing insurance sector, barely a year after the doors
were opened for the re-entry of private players.
The new face of the Indian insurance industry is craving for attention. Hoardings and billboards of the
new joint venture private companies gaze at you from everywhere. Advertisements in newspapers and
on television, insurance agents and direct mailers form part of the campaign vehicle. The dozen-odd
life and non-life companies in the private sector are fighting a quiet but intense battle to make their
presence felt to the Indian consumer.
Not to be undone, the public sector companies are trying to match the moves of the private companies.
They are shedding their old ways and donning a sprightlier and market-friendly exterior to make sure
that they do not lose the advantage of a head start.

12

ABOUT RELIANCE LIFE INSURANCE

An Overview of Its origin
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil
Dhirubhai Ambani Group. The company acquired 100 per cent shareholding in AMP Sanmar Life
Insurance Company in August 2005. Taking over AMP Sanmar Life provided Reliance Life Insurance
a readymade infrastructure and a portfolio. AMP Sanmar Life Insurance was a joint venture between
AMP, Australia and the Sanmar Group. Headquartered in Chennai, AMP Sanmar had over 90 offices
across the country, 9,000 agents, and more than 900 employees.

Reliance Life Insurance Company Limited is a part of Reliance

Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading
private sector financial services companies, and ranks among the top 3 private sector financial services
and banking companies, in terms of net worth. Reliance Capital has interests in asset management and
mutual funds, stock broking, life and general insurance, proprietary investments, private equity and
other activities in financial services.
Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the
Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934.
Reliance Capital sees immense potential in the rapidly growing financial services sector in India and
aims to become a dominant player in this industry and offer fully integrated financial services.
Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based Life
Insurance solutions to individuals and Corporates.

Human Resources
In my book, we have no greater asset than the quality of our intellectual capital, and no greater
priority than the growth and retention of our vast pool of talent Anil Dhirubhai Ambani
At Reliance - Anil Dhirubhai Amabani Group, we recognise the critical role that our people play in the
success and growth of each of our businesses. It is the skill and initiative of our workforce that sets us

13

apart from our peers in todays knowledge-driven economy. It is their commitment and dedication that
lends us the competitive edge, and helps us stay ahead of the curve.
Its strong team of professionals is among the youngest in the country, and consists of some of the most
dynamic, motivated and qualified individuals to be found anywhere in the world. First-rate
management graduates, highly trained engineers, top-notch financial analysts and razor sharp
accountantswe have on our rolls some of the brightest minds in the business.
Mission
Its transparent HR policies and robust processes are driven by a single overarching objective: To
attract, nurture, grow and retain the best leadership talent in every sector and industry is which we
operate.
Vision
To build a global enterprise for all our stakeholders, and
A great future for our country,
To give millions of young Indians the power to shape their destiny,
The means to realize their full potential
Aim
To create a team of world beaters that is:
Committed to excellence in quality,
Focused on creation and enhancement of stakeholder value
Responsive to evolving business needs and challenges
Dedicated to uphold the core values of the Group
Promise
In order to achieve our objective, we offer our people...
Growth opportunities to expand leadership capabilities
True meritocracy and freedom to choose career paths
Opportunities to develop and hone leadership and functional capabilities
An entrepreneurial environment where people can pursue their dreams
Competitive compensation

14

In addition, we follow a well-defined Rewards & Recognitions programme that periodically identifies
exceptional individual and team achievers among the various business functions and verticals in the
Group.
Expectations
At Reliance - Anil Dhirubhai Ambani Group, we encourage our colleagues to take leadership, at all
levels of the organization, and participate in accelerating growth of our businesses to build a
formidable enterprise.
Leaders in Reliance - Anil Dhirubhai Ambani Group are expected to
Always keep the customers needs in mind and constantly innovate
Execute flawlessly and with speed
Sustain and strengthen the groups spirit of entrepreneurshiptaking ownership and accountability for
their actions
Leverage synergies to learn and build on the diverse experiences and skill sets of our various
businesses and teams
Create a true meritocracy with a pervasive commitment to transparent systems and processes
Do all this with unquestionable Integrity to ensure total compliance with the laws of the land.

Core Values
Shareholder Interest
We value the trust of shareholders, and keep their interests paramount in every business decision we
make, every choice we exercise
People Care
We possess no greater asset than the quality of our human capital and no greater priority than the
retention, growth and well-being of our vast pool of human talent
Consumer Focus
We rethink every business process, product and service from the standpoint of the consumer so as to
exceed expectations at every touch point

15

Excellence in Execution
We believe in excellence of execution in large, complex projects as much as small everyday tasks. If
something is worth doing, it is worth doing well.
Team Work
The whole is greater than the sum of its parts; in our rapidly-changing knowledge economy,
organizations can prosper only by mobilizing diverse competencies, skill sets and expertise; by
imbibing the spirit of thinking together -- integration is the rule, escalation is an exception
Proactive Innovation
We nurture innovation by breaking silos, encouraging cross-fertilization of ideas & flexibility of roles
and functions. We create an environment of accountability, ownership and problem-solving based on
participative work ethic and leading-edge research
Leadership by Empowerment
We believe leadership in the new economy is about consensus building, about giving up control; about
enabling and empowering people down the line to take decisions in their areas of operation and
competence
Social Responsibility
We believe that organizations, like individuals, depend on the support of the community for their
survival and sustenance, and must repay this generosity in the best way they can
Respect for Competition
We respect competition because theres more than one way of doing things right. We can learn as
much from the success of others as from our own failures.
In this Policy, the investment risk in investment portfolio is borne by the Policy holder
Ensure a comfortable retirement for your corporate family.

16

RELIANCE ADA GROUP CHART

Reliance ADA Group

Leadership team

Communication

Energy

Capital

Entertainment
Infrastructure

Wireless

Generation

Mutual Funds

Adlabs
Natural Resources

Broadband

Webworld

Global Business

Transmission

Distribution

Power Trading

EPC

Life Insurance

General Insurance

R Trade

Private Equity

New Initiatives

Core Business

17

Radio

New Initiatives

Mudra
Communications
Infostream

NIS Spatra

New Growth
Areas

Subdivision of Reliance Capital

Reliance Capital

Reliance Life Insurance

Reliance Mutual Fund

Reliance General Insurance

Corporate Profile
CEO
Mr. P Nandagopal joined Reliance Life Insurance Company Limited as CEO on October 4th, 2005 the day the share holding of AMP Sanmar was transferred to Reliance Capital Group.
Prior to this, he was with Birla Sun Life Insurance as one of its founding members. Working as Senior
Vice-President, he was responsible for driving the Alternate Channels, Group Insurance and Pensions
businesses.
Mr. Nandagopal has over two decades of experience in the financial services industry. Starting from
Andhra Bank, he moved on to GIC and its subsidiaries - New India Assurance and GIC Asset
Management - managing various assignments in finance, underwriting, claims and mutual fund
marketing.
Later he shifted to DSP Merrill Lynch as Head of its Retail Sales Channels and then to Birla Sun Life
in 1999.

18

In 1995, he was given the Young Manager of the Year award by Hyderabad Management Association
in recognition of his all-round excellence in performance and leadership skills and contribution to the
performance and growth of his organization.
He is an MBA with Finance and Marketing majors, an Associate Company Secretary and a Fellow of
the Insurance Institute of India. He has written several articles for newspapers and journals and has
also authored his first book titled Investors Handbook. It is the prescribed reference book for AMFI
exams.
His hobbies and interests include event management, interior decoration, freelance journalism, poetry,
and scriptwriting and art direction.
CFO
Mr. Rajesh Bahl is the Chief Financial Officer (CFO) of Reliance Life Insurance Company Limited.
In his role as CFO, Mr. Bahl is responsible for the overall finance and accounts operations.
Mr. Bahl has 12 years of experience in the field of financial planning with expertise in strategic
planning, business controlling, audit and compliance.
He began his career with AF Fergusson & Co. He then joined Modi Xerox, followed by Ericsson and
Pepsi. Prior to joining Reliance, he was the Chief Compliance Officer and Financial Controller at Tata
AIG Life Insurance for over three years which included a stint at a high powered MD Forum to work
on a strategic project for improving customer service, profitability and market share. He has been
instrumental in obtaining a superior International Audit Rating for Tata AIG Life within the second
year of operation.
A commerce graduate from Delhi University and a Chartered Accountant from Institute of Chartered
Accountants of India, Mr. Bahl has first hand experience in setting up a new company and processes
involved.

.CMO
Mr. Rohit Gaurav Mull is the Chief Marketing Officer at Reliance Life Insurance Company Limited.
In this role Mr. Mull is responsible for the overall sales and marketing operations and heads the 5 sales
channels, product, training and marketing team at Reliance Life Insurance.

19

Mr. Mull brings with him 14 years of experience ranging from categories like FMCG to Life Insurance.
He has spent a considerable part of his career in leading companies such as Cadbury India Ltd., CocaCola India, and Tata AIG Life Insurance Company Ltd in various roles. As the Vice-President,
Marketing at Tata AIG Life Insurance Company Limited, he was responsible for building the Brand,
Corporate Marketing, Public Relations, Regional Marketing, Product Development and Direct
Marketing.
He has handled a combination of assignments at Coca-Cola including marketing properties through the
activation of movies, music, sports and celebrity tie-ups after which he took over as the Senior Brand
Manager for Sprite and Limca. After spending over 2 years in Coca-Cola India, he started
ApnaLoan.com as an entrepreneur along with four professionals and focused on direct marketing and
distribution support online for financial services like credit cards, home loans and personal loans.
An Economics Honors graduate from Delhi University, he has done his Masters in Management from
IMT, Ghaziabad, with a specialization in sales and marketing.

COO
Mr. K.V. Srinivasan is the Chief Operating Officer of Reliance Life Insurance Company Limited.
In this assignment with Reliance Life Insurance, he heads the Operations, Finance, IT, Legal &
Secretarial departments.
Mr. Srinivasan has a total of 18 years of experience prior to Reliance, 3 years in management
consulting with A. F. Ferguson & Co.; 4 years in treasury management with ITC Classic Finance, 5
years in retail liabilities & assets with ICICI, 3 years in agency management with ICICI Prudential and
3 years as a CFO with Citicorp Finance.
He has completed his graduation in Commerce (Hons) from St. Xaviers College, Calcutta and then
specialized in ACA, ACS, and PGDM from IIM Ahmedabad.

Vice President Group Infrastructure

Mr. K. Suresh Babu is the Vice President Group Infrastructure at Reliance Life Insurance Company
Limited and heads Branch Expansion and Group Infrastructure.
Sureshbabu has more than 25 years of experience in the financial services industry. Prior to joining this
company, he was Head Operations & Compliance in Reliance Mutual Fund for over 3 years, before
which he was heading Client Services & Operations in JF Mutual Fund, JP Morgan Chase for over 3

20

years. He has over 18 years experience in Indian Bank and Indbank Merchant Banking Services Ltd., a
subsidiary of Indian Bank; in Merchant Banking and Commercial Banking.
Sureshbabu has done his post graduation in Commerce from Osmania University with a specialization
in Industrial Finance - CIF from Indian Institute of Bankers. . He is also a Certified Associate from the
Indian Institute of Bankers.

Appointed Actuary
Ms. Pournima Gupte is the Appointed Actuary at Reliance Life Insurance Company Limited and heads
the Actuarial Department.
Appointed Actuary is the position created by the IRDA Act. Though Appointed Actuary happens to be
an employee of the Company, he/she acts as proxy of the Regulator and ensures that the provisions of
the various acts (such as IRDA Act, Insurance Act etc) are complied with. On one hand, she has to
protect the long term interests of the policyholders and on the other, protect the interests of the
shareholders while complying with the various controls/restrictions imposed by the Insurance
Regulatory and Development Authority. To comply with her legal obligations, the Appointed Actuary
enjoys the privilege of attending the Board meetings as a requirement of the relevant law.
Ms. Gupte has 23 years of past experience in the Life Insurance industry. This includes 20 years at Life
Insurance Corporation of India at various senior levels including four years deputation as a Manager at
London Branch Office in the UK. She has also worked as the Chief Manager Actuarial, at Kotak
Mahindra Life Insurance Company and Associate Vice President, Actuarial at Bajaj Allianz Life
Insurance Company.
A graduate in Statistics, she is also a Fellow of Actuarial Society of India (FASI).

Chief Investment Officer

Mr. R Rangarajan is the Chief Investment Officer at Reliance Life Insurance Company Limited and
heads the investment function. The objective of the Investment team is to give best possible return on
investments, keeping in view the risk appetite of the
Shareholders and Policyholders.
He was working with AMP Sanmar Life Insurance as Head Investments for the last three years. He
has a total work experience of more than 25 years mostly in the investment area. His earlier assignment
was with a large Mutual Fund organization.
He is a qualified Chartered Accountant.

21

Head HR
Ms. Maneesha Thakur heads the Human Resources Department at Reliance Life Insurance Company
Limited.
In this role, Ms. Thakur is responsible for developing a performance driven culture and ensuring
manpower availability as per budgeted numbers with required competencies. She is also working on
increasing media presence in people related areas by positioning key hires and social initiatives at local
levels. She has also undertaken marketing and branding campaigns for key HR initiatives. One of the
most challenging tasks for her is to build organizational-people capabilities and developing leaders
Ms. Thakur has a total work experience of 15 years and has worked with companies like SHCIL,
ALLTEL, Transamerica, ICICI Bank and VSNL.
Having completed her post graduation in English Literature, she has also done PGD - PM&IR from
XLRI Jamshedpur in 1991.

About Reliance Mutual Fund

Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882 with
Reliance Capital Limited (RCL), as the Settlor/Sponsor and Reliance Capital Trustee Co. Limited
(RCTCL), as the Trustee.
RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration
number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund has been
changed to Reliance Mutual Fund effective 11th. March 2004 vide SEBI's letter no.
IMD/PSP/4958/2004 date 11th. March 2004. Reliance Mutual Fund was formed to launch various
schemes under which units are issued to the Public with a view to contribute to the capital market and
to provide investors the opportunities to make investments in diversified securities.

The main objectives of the Trust are:

To carry on the activity of a Mutual Fund as may be permitted at law and formulate and devise various
collective Schemes of savings and investments for people in India and abroad and also ensure liquidity
of investments for the Unit holders;

22

To deploy Funds thus rose so as to help the Unit holders earn reasonable returns on their savings and to
take such steps as may be necessary from time to time to realize the effects without any limitation.

About Reliance General Insurance

Fundamentals of General Insurance companies are business houses. The product they sell is financial
protection. To succeed and survive, they must cover their costs, which include payments to cover the
losses of policyholders, as well as sales and administrative expenses, taxes and dividends. Insurance
companies have two sources of income for covering these costs: premium and investment income. The
premium are collected on a regular basis and invested in Government Bonds, Gift stocks, mutual funds,
real estates and other conservative avenues. However, investment income depends on market
conditions, interest rates, economy etc and varies from year to year. Because of the uncertainty
associated with the investment income, insurance companies must generate enough income form
premium to cover the bulk of their expenses.
The primary function of insurance is to provide protection against financial losses caused by
unforeseen events. This protection is available to individuals, businessmen and large companies alike.

Meaning of Risk/Insurance
Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay
the financial losses suffered by the insured as a result of the occurrence of unforeseen events. The term
risk is used to describe all the accidental happenings, which produce a monetary loss.
Insurance is a method in which a large number of people exposed to a similar risk make contributions
to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are
made good. The sharing of risk among large groups of people is the basis of insurance. The losses of an
individual are distributed over a group of individuals.
The risk becomes insurable if the following requirements are complied with:
The insured must suffer financial loss if the risk operates.
The loss must be measurable in money,
The object of the insurance contract must be legal.
The insurer should have sufficient knowledge about the risks he accepts.

23

Management Team of Reliance General Insurance

Chief Executive Officer

K A Somasekharan

Chief Financial Officer

Bipin Kabra

Underwriting and Risk Management

Mukul Kishore

Chief Technology and Operations Officer

Sriram Naganathan

Human Resources

Prashant Utreja

Company Secretary

Mohan Khandekar

Department
Retail Marketing

Saugata Chatterjee

Agency & Brokers Relations

Manoj S Chauhan

Large Corporates

Poonam Sandhu

Small and Medium Enterprise Group

Archana Yadav

Claims

Supratik Biswas

Products

Hemalatha Chandrasekhar

Technical Inspection

Anil K Khanna

International Relations

Dilip Sinha

About Reliance Money

Reliance Money is an Endeavour to change the way India trades in financial markets and avails of
various financial services. Reliance Money ensures maximum security with a unique security token to
keep your online account safe.

24

RELIANCE LIFE PRODUCTS

It offers need based life insurance to solutions to individuals and corporate (Individual).

Employee Benefit
Reliance Group Gratuity policy
In this policy, the investment risk in investment portfolio is borne by the policy holder
The Indian Government introduced the Payment of Gratuity Act in 1972. Generally gratuity accrues at
a rate of 15 days last drawn salary per year of service for each employee or as defined by the trust
deeds. Gratuity is payable immediately on cessation of employment, provided the employee has
continuous service of at least five years. The five year provision does not apply on death or
disablement of the employee. Gratuity by nature is a medium- to long-term liability of the employer
and accordingly an appropriate medium- to long-term investment strategy should be adopted by
trustees to match assets and liabilities.
Liability for your employees gratuity is often the trickiest thing to forecast accurately and manage
well. While doing so you may come across some pertinent questions: What is my true liability for
employees gratuity? How do I manage this liability? Am I maximizing my potential tax benefit? Am I
rewarding my most valuable employees adequately? Am I matching long-term liabilities under
Gratuity with my investment strategy? Are my Gratuity assets professionally managed?
We at Reliance Life Insurance Company Limited can be of help to find answers to most of these very
relevant questions. We can assist you to meet your obligations under the Payment of Gratuity Act while
providing innovative solutions and delivering long-term results for your investment through our
Reliance Group Gratuity Plan. You can also transfer your existing gratuity liability managed under
some other funds to Reliance Life Insurance Company Limited.

Reliance Group Gratuity Plan

This is a unit linked group Gratuity product with three different fund options, namely Capital Secure,
Growth and Balanced Funds. It enables employers / trustees with more than 20 employees to outsource
the management of their employees Gratuity funds and the related administration to Reliance Life
Insurance Company Limited.

25

Policy Conditions
Minimum/Maximum annual past service gratuity contribution Rs.200000/no limit
Minimum/Maximum Entry Age - 18 years last birthday/64 years last birthday
Maximum Maturity Age - 65 years last birthday
Minimum Policy Term - 1 year
Minimum/maximum Insured death benefit sum assured Rs.1000 per member/no limits
The Reliance Group Gratuity Plan is a unit linked Plan where the employer can choose for each
member past service gratuity to be paid out to the employee and a level of insured death benefit,
subject to a minimum insured death benefit of Rs.1000 per member. This insurance premium will be
quoted by us and will be payable over and above the past service gratuity liability contributions. Each
past service gratuity liability contribution received will be utilized to purchase units in the unit-linked
funds chosen by the employer / trustees. The fund options have different time horizons, risk profiles
and return levels.
Capital Secure Fund: The investment objective of the Capital Secure fund is to maintain the value of all
past service gratuity liability contributions (net of charges). The current asset allocation Limits are:
100% Government securities and bank deposits with duration of less than 180 days. Time horizon
Short, Risk Level Low, Level of expected returns Low
The contributions in Capital Secure Fund must not exceed 20% of the total allocated contributions at
any time.
Balanced Fund:
The investment objective of the balanced fund is to provide policyholders with investment returns
which exceed the rate of inflation in the long term while maintaining a low probability of negative
investment returns. The current asset allocation limits are: 80% min Government securities and
corporate bonds & 20% max Equities. Time horizon Medium, Risk Level Low-medium, Level of
expected returns - Medium

26

Growth Fund:
The investment objective of the Growth fund is to provide policyholders with investment returns which
exceed the rate of inflation in the long term while maintaining a moderate probability of negative
investment returns. The current asset allocation limits are 60% min in Government securities, corporate
bonds and bank deposits & 40% max in Equities. Time horizon Long, Risk Level Medium-High,
Level of expected returns - Medium
Unit Pricing:
The unit price of each fund will be calculated on a daily basis. Unit Value = Total Market Value of
assets plus/less expenses incurred in the purchase/sale of assets plus Current Assets plus any accrued
income net of fund management charges less Current Liabilities less Provision
Total Number of units on issue (before any new units are allocated / redeemed)
The unit pricing shall be computed based on whether the company is purchasing (appropriation price)
or selling (expropriation price) the assets in order to meet the day to day transactions of unit allocations
and unit redemptions i.e. the company shall be required to sell/purchase the assets if unit
redemptions/allocations exceed unit allocations/redemptions at the valuation date.
The Appropriation price shall apply in a situation when the company is required to purchase the assets
to allocate the units at the valuation date as stated above. This shall be the amount of money that the
company should put into the fund in respect of each unit it allocates in order to preserve the interests of
the existing unit holders
The Expropriation price shall apply in a situation when the company is required to sell assets to redeem
the units at the valuation date as stated above. This shall be the amount of money that the company
should take out of the fund in respect of each unit it cancels in order to preserve the interests of the
continuing unit holders.

27

Allocation of units:
The company applies premiums to allocate units in one or more of the unit-linked funds in the
proportions which the policyholder specifies. In case of New Business, units shall only be allocated on
the day the proposal is completed and results into a policy by the application of money towards
premium. In the case of renewal premiums, the premium will be adjusted on the due date, whether or
not it has been received in advance. (This assumes that the full stipulated premium is received on the
due date.)
In respect of premiums received or funds switched up to 4.15 p.m. by the company along with a local
cheque or a demand draft payable at par at the place where the premium is received, the closing NAV
of the day on which the premium is received or funds switched, shall be applicable. In respect of
premiums received after 4.15 p.m. by the company along with a local cheque or a demand draft
payable at par at the place where the premium is received, the closing NAV of the next business day
shall be applicable.
In respect of premiums received with outstation cheques or demand drafts at the place where the
premium is received, the closing NAV of the day on which cheques / demand draft is realized shall be
applicable.
Redemptions
In respect of valid applications received (e.g. surrender, benefit payment, switch out etc) up to 4.15
p.m. by the insurer, the same days closing NAV shall be applicable. In respect of valid applications
received (e.g. surrender, benefit payment, switch out etc) after 4.15 p.m. by the insurer, the closing
NAV of the next business day shall be applicable. The NAV for each segregated fund provided under
this product shall be made available to the public in the print media on a daily basis. The NAV will also
be displayed in the web portal of the company.

28

Benefits under the Plan

The exact benefits for a scheme under this Plan will depend on the individual employers gratuity
scheme. Generally, the contingencies for benefit payment and the benefit level will be as given below:
Death of employee in service past service gratuity plus insured death benefit amount
Disability of employee in service - past service gratuity
Retirement of employee past service gratuity
Resignation / early termination of service of the employee: past service gratuity
Surrender of Policy
If the employer / trustees decide to surrender their policy, Reliance Life Insurance Company Ltd. will
pay a surrender benefit equal to the fund value minus the surrender charges, if any.
All benefits, except for insured death benefit amount, shall be payable by canceling units at the
prevailing unit price. The liability of the insurer for a scheme will be limited to the fund value plus the
insured death benefit amount under the scheme.
Discontinuance of Insurance Premium payment
A policy shall lapse if insurance Premiums along with Gratuity Contributions are not paid within the
grace period of 30 days.Under a lapsed policy, the life cover will continue. The insurance premium will
be collected by canceling units. The policy will continue to participate in the performance of unit funds
chosen by the policyholder.
If the policy is not revived within the period of revival of 5 years from the due date of the first unpaid
premium, the surrender value, if any will be paid at the end of period allowed for revival and the
contract will be terminated.
Revival of discontinued policy
A policyholder may revive a policy by recommencing the payment of insurance premiums along with
Gratuity contributions at any time within a period of 5 years from the due date of first unpaid insurance
premium
Payment of gratuity liability contributions along with insurance premium

29

For a newly set up gratuity trust, the past service gratuity liability contribution can be paid either in a
lump sum or in installments spread over not more than 5 years. For an existing scheme, the annual
gratuity liability contributions along with insurance premium can be paid either in yearly or half-yearly
or quarterly or monthly installments.
Insurance Premium:
It means the amount payable to keep the insured death benefit in force. It will depend on the attained
age at start of policy year, the amount of insured death benefit and
Occupation class.

Grace Period
There is a grace period of 30 days from the due date for the payment of the insurance premium along
with gratuity contributions. If insurance premium along with gratuity contribution is payable monthly,
the grace period will be 15 days from the due date.
Switching & Contribution redirection:
Transferring (switching) assets from one investment fund to another can be done at any time. You can
make up to four switches free of charge each year. You may also redirect past service gratuity liability
contributions in future to a different asset mix. The flexibility is yours.

Charges
Fund Management Charges

Fund

Charge (% of funds under management)

Capital Secure Fund

0.75% per annum

charged daily

Balanced Fund
Growth Fund

0.75% per annum

charged daily

0.75% per annum

charged daily

The fund management charges are not guaranteed. The Fund Management Charges under Capital
Secure Fund can be increased up to 2% per annum. The Fund Management Charges under Balanced
Fund and Growth Fund can be increased up to 2.5% per annum. However any changes to the fund
management charges shall be subject to Insurance Regulatory Development Authority (IRDA)
approval.

30

Switching charges
Transferring (switching) from one investment fund to another can be done at any time. You can make
up to four switches free of charge each year. Any switch above this will attract a charge of 0.1% of the
switched amount subject to minimum of Rs.1000 per switch and maximum of Rs.5000 per switch. This
charge is recovered by canceling units.
Surrender charges Year
Year 1
Charge(% of fund value) 5%

Year 2
4%

Year 3
3%

Year 4
2%

Year 5
1%

Year 6 Onwards
NIL

These charges are levied only if the employer / trustees decide to surrender the policy with Reliance
Life Insurance Company Limited.
Suicide Claim provisions
In case of a claim where a member has committed suicide within 12 months from the date of inception
of the scheme, whether sane or insane at that time, the company will limit the death benefit to the past
service gratuity benefit (which will be paid from the unit-linked fund of the scheme), and will not pay
any insured death benefit
Payment of taxes, stamp duties
We will deduct from benefits/insurance premium/contribution any taxes, duties or surcharges of
whatever description where levied by any statutory authority.

Reliance Group Term Assurance Policy

What is Reliance Group Term Assurance Policy?
Reliance Group Term Assurance Policy is a one year Renewable Term Assurance contract. The benefit
is payable on the happening of the contingency during one year. At the end of the year, the contract
may be renewed.

31

Who is Reliance Group Term Assurance Policy designed for?

Employers looking for a comprehensive professionally administered term assurance cover for their
employees. Subject to approval by the Provident Fund Commissioner, this Policy can be used as a
replacement for the Employees Deposit Linked Insurance Scheme under the Provident Fund Act.

What are the benefits provided?

A payment is made on the death of an employee. Cover can be:
Fixed multiple of salary
% of salary for each year of future service to normal retirement date
Fixed Rupee amount
Fixed Age-related scale
Formula based on designation / rank of employees in the group
If an employee becomes disabled, as defined by us, then the benefit above is accelerated and paid out
in 5 equal annual installments.
No further benefit is payable subsequently.
No benefits are payable on survival to the end of the year.

What options are available?

You can choose:
Whether or not to provide the benefit on disablement
Whether or not you wish to benefit from experience in your policy
Whether or not to give your employees the choice of continuing their cover with us under an individual
policy

What is the benefit from experience in the Policy?

At the end of every 3 policy periods, under the basis specified below, we will investigate the claims
experience under this policy. That investigation may lead us to decide that an experience refund is due.
If we declare that an experience refund is due, we will adjust it against the premium due for the next
policy period.

32

If it later turns out that an incorrect experience refund has been paid, the policy owner must pay any
amount owed to us. Also, we may reduce the amount we pay under any claim to reflect any amount the
policy owner owes.

Why take this policy?

Improved HR because the benefit has value to the employee
Replacement of lump sum payments with regular premiums accelerates tax relief
Statutory compliance if used to replace insurance cover under the Provident Fund Act

What do your employees get?

Coverage at rates lower than applicable to individual lives
Simplified procedures for insurability- limited or no medical tests

When benefits are not payable?

We do not pay the death benefit under this policy if the Insured Person, whether sane or insane, dies by
his or her own hand, within 12 months from the date on which his or her cover commenced.
We do not pay the disability benefit under this policy which is caused, directly or indirectly, by:
Engaging in another occupation, unless the same has been agreed upon by us; or
Intentional self injury or illness (whether wholly or partly); or
Participation in any criminal or illegal act; or
Being under the influence of alcohol or drugs except under direction of a registered medical
practitioner; or
Racing or practicing racing of any kind other than on foot; or
flying or attempting to fly in, or using or attempting to use, an aerial device of any description, other
than as a fare paying passenger on a recognized airline or charter service; or
Participating in any riot, strike or civil commotion, active military, naval, air force, police or similar
service; or
War, invasion, act of foreign enemies, hostilities or war like operations (whether war be declared or
not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped power or any act of
terrorism or violence.

33

Automatic Cover will apply to:

All Insured Persons who are At Work on the date of commencement of the policy; and
all of the Employers permanent employees who are first eligible to become an Insured Person on or
after the date of commencement of the policy and who apply to be an Insured Person within 3 months
of first becoming eligible, and who are At Work on the date they first apply.
Provided that the persons in (a) and (b) above: are up to age 60;
have not been absent from work due to sickness or injury for more than 3 weeks in either of the 2 years
prior to the date on which they are eligible to be insured under the Policy;
have joined the employer before attaining age 55.
Lives with cover above the automatic cover limits applicable to the group, will be underwritten and
substandard lives with medical conditions and other impairments will be underwritten as per the
underwriting manual. The basis of underwriting will be the full amount of cover, including up to the
automatic cover limit.

How will the plan be administered?

We will depend on you to provide us with details of the lives covered under the policy, in a mutually
agreeable format, showing for each member details like name, identity number, date of birth, male /
female, date of joining, salary, if absent from work, reason for the same, benefit amount or formula for
each type of benefit.
We will need this information at the start of the policy and at every annual renewal date. We will also
have to be informed about any changes to the membership of the group of lives covered, during the
year.

SECTION 41 OF THE INSURANCE ACT, 1938 STATES

* No person shall allow or offer to allow, directly or indirectly, as an inducement to any person to take
out or renew or continue an insurance in respect of any kind of risk relating to lives or property in
India, any rebate of the whole or part of the commission payable or any rebate of the premium shown
on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate,

34

except such rebate as may be allowed in accordance with the published prospectuses or tables of the
insurer.
* Any person making default in complying with the provisions of this section shall be punishable with
fine which may extend to five hundred rupees.
SECTION 45 OF THE INSURANCE ACT, 1938 STATES
* No policy of life insurance effected before the commencement of this Act shall after the expiry of
two years from the date of commencement of this Act and no policy of life insurance effected after the
coming into force of this Act shall after the expiry of two years from the date on which it was effected,
be called in question by an insurer on the ground that a statement made in the proposal for insurance or
in any report of a medical officer, or referee, or friend of the insured or in any other document leading
to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a
material matter or suppressed facts which it was material to disclose and that it was fraudulently made
by the policy holder and that the policy holder knew at the time of making it that the statement was
false or that it suppressed facts which it was material to disclose.
* Provided that nothing in this section shall prevent the insurer from calling for proof of age at any
time if he is entitled to do so, and no policy shall be deemed to be called in question merely because
the terms of the policy are adjusted on subsequent proof that the age of the life insured was incorrectly
stated in the proposal.

Reliance Group Superannuation Policy

In this Policy, the investment risk in investment portfolio is borne by the Policy holder
Ensure a comfortable retirement for your corporate family.

Why should you consider the Reliance Group Superannuation Policy?

As an employer you currently contribute 12% of each employee's salary into the Employees Provident
Fund Scheme. However, is this sufficient to provide for an adequate retirement income for your
employees?
The answer to this question is unfortunately, NO.
.

35

Firstly, your employees have the option to withdraw assets from the Provident Fund on a regular basis
to meet ongoing lifestyle expenses. Most of your employees will reach retirement age with an
inadequate balance to purchase an income stream to provide them a reasonable income on retirement.
The second reason is that employees are now retiring younger but are living longer. Therefore the
capital they need to buy an income stream is much greater than ever before, and this increase in life
expectancy will continue to grow making this gap even greater.

What does Reliance Group Superannuation Policy offer?

Superannuation is a tax effective way for employers to reward and recognize employee performance.
The Reliance Group Superannuation Policy provides you with the flexibility to enable you to tailor
your Superannuation Scheme to suit various groups of employees.
Employers can receive a full tax deduction for contributions up to 15% of an employee's salary into the
Reliance Group Superannuation Policy arrangement.
What are the investment options and what is the flexibility?
Investment choice allows you to choose any combination of our three investment funds to maximize
your investment return.
Our investment options are:
1. Capital Secure Fund:
The investment objective of the Capital Secure Fund is to maintain the value of all contributions
(net of charges) and all interest additions. The Policyholder may allocate up to 20% of their
investment at any time under this fund. The asset allocation limits under this fund are 100%
Government Securities and Bank Deposits with duration of less than 180 days.
2. Balanced Fund:
The investment objective of the Balanced Fund is to provide Policyholders with investment returns
which exceed the rate of inflation in the long-term while maintaining a low probability of negative
investment returns. The asset allocation limits are: 80% minimum in Government Securities and
Corporate Bonds & 20% maximum in Equities.

36

3. Growth Fund:
The investment objective of the Growth Fund is to provide Policyholders with investment returns
which exceed the rate of inflation in the long-term while maintaining a moderate probability of
negative investment returns. The asset allocation limits under the fund are 60% minimum in
Government Securities, Corporate Bonds and Bank Deposits & 40% maximum in Equities.
Switching:
Transferring (switching) assets from one Investment Fund to another can be done at any time. You can
make up to four switches free of charge each year. You may redirect future contributions to a different
asset mix. The flexibility is yours.
Flexible benefit design:
You can have a variety of contribution levels, define benefit accruals, and different eligibility periodswhen benefits are paid.
Under Defined Contribution schemes, your employees can also make personal
Contribution by nominating a percentage of their salary /wage and contribution can be paid either as a
regular pay deduction or as a lump sum payment. This facility will be available where separate
accounts are maintained for each member.
Employees with Superannuation Benefits from former employer plans can transfer these benefits into
your Group Superannuation Policy.

Discontinuance of due contributions:

The contributions can be paid monthly, quarterly, half yearly or yearly. There is a grace period of 30
days (15 days if the contributions are paid monthly) for the payment of contributions.
If the payment of contributions is discontinued within 3 years from the inception of the Policy, the
Policyholder can revive the Policy within the period of revival allowed. The Policy will continue to
participate in the performance of the fund chosen by the Policyholder during this period. If the Policy
is not revived during the period of revival, the Policy will be terminated and the Surrender Value if any
shall be at the end of the allowed period of revival.

37

If the payment of contributions is discontinued after paying the contributions for at least three
consecutive years, the Policyholder can revive the Policy within the period of revival allowed. The
Policy will continue to participate in the performance of the fund chosen by the Policyholder. If the
Policy is not revived during the period of revival, the Policy will be terminated and the Surrender
Value, if any shall be paid at the end of the allowed period of revival. However, when the Fund Value
reaches an amount equal to
One full years contribution, the Contract shall be terminated by paying the Fund Value.
The Policyholder may revive the Policy at anytime during five years from the date of first unpaid
contribution by re-commencing the payment of contributions.
Charges
Management Charges Fund
Fund

Charge (% of fund value)

Capital Secure Fund

1.50% pa charged daily

Balanced Fund
Growth Fund

1.50% pa charged daily

1.75% pa charged daily

The Fund Management Charges are not guaranteed. Reliance Life Insurance Company Ltd. reserves
the right to vary these charges in future, by giving three months notice to the employer / trustee.
However, any revision in charges will be subject to IRDA approval. The maximum Fund Management
Charge on any fund will be as follows:

Fund

Maximum charge (% of fund value)

Capital Secure Fund

2.00% pa

Balanced Fund
Growth Fund

2.50% pa
2.50% pa

Switching charges
Transferring (switching) from one Investment Fund to another can be done at any time. You can make
up to four switches free of charge each year (one only if the individual employee is switching). Any
switch above this will attract a charge of 0.1% of the switched amount subject to a minimum of Rs.1,
000 and a maximum of Rs.5, 000.

38

Surrender charges Year Charge (% of Fund Value)

Year 1

5%

Year 2

4%

Year 3

3%

Year 4

2%

Year 5

1%

Year 6+

NIL

Individuals plans
Reliance offers 16 individuals plans. These are:
1. Reliance Automatic Investment Plan
2. Reliance Money Guarantee Plan
3. Reliance Endowment Plan
4. Reliance Special Endowment Plan
5. Reliance Cash Flow Plan
6. Reliance Child Plan
7. Reliance Whole Life Plan
8. Reliance Golden Years Plan
9. Reliance Golden Years Plan Value
10. Reliance Golden Years Plan Plus
11. Reliance Market Return Plan
12. Reliance Term Plan
13. Reliance Simple Term Plan
14. Reliance Special Term Plan
15. Reliance Credit Guardian Plan
16. Reliance Special Credit Guardian Plan
17. Reliance Connect To Life Plan
Details are given below of some individuals plan:-

39

Reliance Automatic Investment

The Key benefits of Reliance Automatic Investment Plan are as follows:

A smart plan which adapts to your changing risk profile with increasing age

Option to lower the average cost of units through systematic transfer of your funds

Flexibility to switch between funds and plans

Options for additional Insurance cover available through riders

Key Features Reliance Automatic Investment Plan

Two plan options to choose from Ready-made and Tailor-made

Life Stage asset allocation to ensure automatic change in investment patterns, under the Readymade Plan option

Freedom to decide your own fund mix based on your risk profile under the Tailor-made Plan

Regular, limited, single premium paying options

Unmatched flexibility through our Exchange Option

Liquidity in the form of partial withdrawal

Option to avail of Accidental Death Benefit, Accidental Total, Premium Disability and Term
Insurance riders

How does this Plan work?

As a customer you will have the liberty to choose between the Ready-made and Tailor-made Plan
options. The premium contributions made by you, net of Premium Allocation Charges and Sum
Assured Related Charges are invested in fund/funds of your choice and units are allocated depending
on the price of units for the fund/funds.
The Fund Value is the total value of units that you hold in the fund/ funds. The Mortality Charges and
Policy Administration Charges are deducted through cancellation of units, whereas the Fund
Management Charge is priced in the Unit Value.

40

Reliance Automatic Investment Plan at a glance

Basic Plan

Minimum

Maximum

Age at Entry

30 days

65 years last birthday

Age at Maturity

18 years last birthday

80 years last birthday

Premium

Paying 5 years

30 years

Term
Min Sum Assured

Regular / Limited Premium: Annualized Premium for 5 years or Annualised

Premium for half of the policy term, whichever higher
Single Premium 125% of the single premium amount

Max Sum Assured

No Limit

Benefit Illustration

To enable a better understanding on how the plan works, please refer to the below table for Regular
Premium.
Age of the customer

30

35

40

45

Annual Premium Paid

25,000

25,000

25,000

25,000

Policy Term

15

15

15

15

Premium Paying Term

15

15

15

15

Sum Assured

1,87,500

1,87,500

1,87,500

1,87,500

Maturity Values:
at 6% investment return
at 10% investment return

4,95,104

4,94,413

4,93,017

4,90,506

6,94,534

6,93,530

6,91,444

6,87,755

Minimum Premium
Yearly

Half Yearly

Quarterly

Monthly

Regular Premium option

Rs 10,000

Rs 5,000

Rs 2,500

Rs 1,000

Limited Premium

Rs 20,000

Rs 10,000

Rs 5,000

Rs 2,000

Single Premium

Rs 25,000

Min Top Up amount

Rs 2,500

Reliance Money Guarantee Plan

Under this plan the investment risk in the investment portfolio is borne by the policyholder.

41

Yes, it's a trio the pace setter plan, which promises Life Protection, an opportunity to gain control over
your investments along with protection of downside risk!
For the select few like you, the Reliance Money Guarantee Plan is a Unit Linked product addressing
comprehensive need to strike that perfect balance of Protection and Savings, that you 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 market simultaneously 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 Exchange Option to move between the Reliance Money Guarantee
suites of 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
How does this Plan work?
The premium contributed by you net of Premium Allocation Charges and Miscellaneous Charge is
invested in fund option of your choice for a specified period of time as selected by you and units are
allocated depending on the price of units for the fund/funds. The Fund Value is the total value of units
that you hold in the fund. The Policy has a minimum Guaranteed Fund Value which is equal to total of
all premiums paid (excluding any additional and extra premiums if any), to be payable on survival to
maturity or earlier death. The amount of top-up premiums paid is also guaranteed on death provided
there is no partial withdrawal. The amount of top-ups premium is guaranteed on maturity provided the
top-ups premium was paid at least 10 years before the date of maturity and there is no partial
withdrawal. The Sum Assured under the Policy is fixed on the basis of the selected annual premium
and Policy Term.

42

The Mortality Charges and Policy Administration Charges are deducted through cancellation of units
whereas the Fund Management Charge is priced in the Unit Value. The premiums for riders, if selected,
are payable over and above the premium for the basic Policy.
Benefits in Details

Capital Guarantee: The plan offers Capital Guarantee provided the Policy is kept in full force by
payment of due premiums on time.
Capital Guarantee under the Basic Plan: Premiums paid under the Basic Plan are guaranteed on the
maturity of the Policy or on death during the Policy Term.
Capital Guarantee under the Top-Up premiums : Each top-up premium paid is guaranteed on death
during the Policy Term provided there are no partial withdrawals from that top-up.
Each top-up premium paid is guaranteed on maturity of the Policy provided the Policy Term is greater
than ten years, there are no partial withdrawals from that top-up and the top-up was paid ten years
before the maturity date.
Life Cover Benefit: The amount of Death Benefit depends on the age of the Life Assured at the time
of death
If the age of the Life Assured at the time of death is more than 12 years last birthday while the Policy is
in force, the Company will pay the sum of:
Higher of (Sum Assured, Fund Value as on date of intimation of death under Basic Plan, Premiums
paid

under

the

Basic

Plan

excluding

any

extra

or

additional

premiums

paid.)

And
Higher of (Fund Value as on date of intimation of death under top- ups and top-up premium paid
provided no partial withdrawal is made from that top-up)
However if the Life Assured's age at the time of death is less than or equal to 12 years last birthday
while the Policy is in force, the Death Benefit will be the sum of:
Higher of (Fund Value as on date of intimation of death under Basic Plan and premiums paid under the
Basic

Plan

excluding

any

extra

or

additional

premiums

paid)

and
Higher of (Fund Value as on date of intimation of death under top- ups and top-up premium paid
provided no partial withdrawal is made from that top-up)
The Policy terminates on payment of the Death Benefit.

43

Maturity Benefit: The Maturity Benefit is the sum of Higher of (Fund Value under Basic Plan and
Premiums paid under Basic Plan excluding any extra or additional premiums paid) and Maturity
Benefit under Top-Up
If Policy Term is greater than ten years, the Maturity Benefit under top-up is the higher of ( Fund Value
under the top-up and top-up premium paid provided there is no partial withdrawal from that top-up)If
Policy Term is ten years, the Maturity Benefit under the top-up is the Fund Value under the top-up. The
Policy

Terminates

on

payment

of

the

Maturity

Benefit.

Sum

assured

The fixed Sum Assured under the Basic Plan will be calculated as the amount of annual premiums
payable for half the Policy Term
Rider Benefit: You can add Accidental Death & Accidental Total and Permanent Disablement Benefit
Rider & Term Life Insurance Benefit Rider.

What are the different fund options?

Funds available in respect of Basic Plan and top-up premium
The plan offers three funds for Basic Plan and top-ups - Fund D, Fund E and Fund F. You have the
option to decide your own fund mix with respect to premiums under the Basic Plan and top-ups.
Funds available in respect of Return Shield Option
Return Shield Fund will be available if Return Shield Option is selected. The returns earned under the
Basic Plan and top-ups will be transferred to Return Shield Fund if Return Shield option is selected.
Funds available during settlement period
If you have opted for the settlement option, then Fund C would apply by default during the settlement
period.

44

The Asset Allocation and investment objective of each of the pre-packaged funds is given below:
Type of Fund
Fund D

Investment Objectives

Asset Category

The investment objective of Fund D is to Money Market Instruments

Asset Allocation
Range (%)

0 - 20

Target
(%)

provide investment returns that exceed the Debt Securities such as Gilts,
rate of inflation in the long term while Corporate Debtexcluding Money 0 - 100
of Market Instruments
negative returns in the short term. The risk Equities
maintaining

moderate

probability

appetite is defined as 'moderate'.

Fund E

60

The investment objective of Fund E is to Money Market Instruments

0 - 40

40

0 - 20

provide, in the long term, returns which are Debt Securities such as Gilts, 0 - 100

50

significantly higher than the inflation rate, Corporate Debtexcluding Money

equity Market Instruments
investments, while recognizing that there is Equities
through

high

exposure

to

0 - 50

50

0 - 20

some probability of negative returns in the

short term. The risk appetite is 'moderate to
high'.
Fund F

The investment objective of Funds is to Money Market Instruments

provide, in the long term, returns which are Debt Securities such as Gilts, 0 - 100

40

significantly higher than the inflation rate, Corporate Debtexcluding Money

equity Market Instruments
investments, while recognizing that there is Equities
through

high

exposure

to

some probability of negative returns in the

short term. The risk appetite is 'moderate to
high'.

45

0 - 60

60

The Asset allocation and Investment Objective under the Return Shield Fund is given below:
Type of Fund
Return Shield

Investment Objectives

Asset
Allocation
Range (%)

Asset Category

The investment objective of the Return Money

Market 0 - 20

Target
(%)

20

Shield Fund is to provide steady Instruments

investment returns achieved through Government

Securities

100% investment in Debt Securities, and approved securities

while maintaining moderate probability Corporate Bonds and other
of negative returns in the short term. Debt Instruments
The

risk

appetite

is

defined

as

0 - 100

40

0 - 60

40

'moderate'.
The Asset Allocation and Investment Objective under Fund C is given below:
Type of Fund

Investment Objectives

Asset Category

Fund C

The investment objective of Fund C is

Asset
Allocation
Range (%)

Money Market 0 - 20

Target (%)

to provide investment returns that Instruments

exceedthe rate of inflation in the long
term

while

maintaining

Debt

low such

Securities
as

Gilts,

probability of negative returnsin the Corporate

short term. The risk appetite is defined Debtexcluding
Money

as 'low to moderate'.

0 - 100

80

Market

Instruments.
Equities
0 - 20
20
Whilst, every attempt would be made to attain target levels prescribed above, it may not be possible to
maintain the prescribed target at all times owing to market volatility, availability of market volumes
and other related factors
The target may be attained on a best effort basis. However the Asset Allocation will always fall
within the Asset Allocation Range mentioned in respect of each fund.

46

Unit pricing & Cut-off Timings

Value of Units: The computation of Unit Value will be based on whether the Company is purchasing
(Appropriation Price) or selling (Expropriation Price) the Assets in order to meet the day to day
transactions of Unit Allocations and Unit Redemptions i.e. the Company shall be required to
sell/purchase the Assets if Unit Redemptions/Allocations exceed Unit Allocations/Redemptions at the
Valuation Date.
The Unit Price of each Fund will be the Unit Value calculated on a daily basis.
Total Market Value of Assets Plus(less) expenses incurred in the purchase (sale) of
Assets plus Current Assets plus any accrued income net of Fund Management
Unit Value =

Charges less Current Liabilities less Provision

Total Number of units on issue (before any new units are allocated(redeemed))

Redemptions:
In respect of valid applications received (e.g. surrender, maturity claim, switch out etc) up to 4.15 p.m.
by the Insurer, the same day's closing NAV shall be applicable.
In respect of valid applications received (e.g. surrender, maturity claim, switch etc) after 4.15 p.m. by
the Insurer, the closing NAV of the next business day shall be applicable.

Fund Valuation
The value of the fund will be equal to the no of units multiplied by the Net Asset Value (NAV) of each
unit in the fund.
The computation of NAV will be based on whether the Company is purchasing (Appropriation Price)
or selling (Expropriation Price) the Assets in order to meet the day to day transactions of Unit
Allocations and Unit Redemptions i.e. the Company shall be required to sell/purchase the Assets if
Unit Redemptions/Allocations exceed Unit Allocations/Redemptions at the Valuation Date.
The Appropriation Price shall apply in a situation when the Company is required to purchase the Assets
to allocate the units at the Valuation Date. This shall be the amount of money that the Company should

47

put into the fund in respect of each unit it allocates in order to preserve the interests of the existing
Policyholders
The Expropriation Price shall apply in a situation when the Company is required to sell Assets to
redeem the units at the Valuation Date. This shall be the amount of money that the Company should
take out of the fund in respect of each unit it cancels in order to preserve the interests of the continuing
Policyholders

Flexibility available under Reliance Money Guarantee Plan

Return Shield an innovative way to protect your returns
This option is available to you during the term of the Policy. You can select or delete this option at any
time during the term of the Policy.
There will not be any charge for the Return Shield option under following circumstances;
If the option is selected under Basic Plan on commencement of the plan
If the option is selected under top-up premium at the time of payment of top-up premium
Under all other circumstances, a fixed charge of Rs100 is payable every time the Return Shield option
is selected.
If this option is selected, the return earned on Basic Plan and Top-Ups during the month will be
transferred to Return Shield Fund at the end of the Policy month. The operation of Return Shield
option under Basic Plan is given below:
The amount of returns to be transferred to Return Shield Fund will be determined separately for each
Policyholder in respect of each of the tree funds D,E and F Fund The method used for determining the
return to be transferred is given below :
=
Less

Fund
Fund

Value)
Value

on

the

on

last

last

working

working

day

day
of

of
the

the
previous

Policy

month

Policy

month

Less amount of inflows during the month

The operation of Return Shield option under top-up premium(s) will be similar to that of Basic Policy.
The amount will be transferred to Return Shield Fund at the prevailing Unit Price.
Exchange Option: This option is available for existing Policyholders after completion of three Policy
years from the date of commencement, Under this option, the Policy holder can transfer Policy
Benefits (surrender, maturity etc.) either fully or partially to another plan. This option must be
exercised at least 30 days before the date of receipt of benefit under the Policy.. The Terms and

48

Conditions as specified in the opted Policy Document would apply to the Policy holder opting for the
'Exchange Option'.
If a Policyholder is opting for the Reliance Money Guarantee plan under exchange option, the
Allocation Charge in year of exchange will be 15 % of the annualised premium of Reliance Money
Guarantee Plan. If the Exchange Option is used to pay top-ups in the Money Guarantee Policy, the
Allocation Charge in the year exchange will be 1% of the top up amount.
Pay top-ups: If you have received a bonus or some lump sum money you can use that as a top-up to
increase the investments component in your Policy. Top-ups are allowed only if all basic premiums due
till date are paid. At any time, the maximum amount of all top-up premiums allowed is restricted to
25% of the total basic regular premium paid till date.
The minimum top-up premium amount is Rs 2,500. The amount of top-up premiums paid is also
guaranteed on death provided there is no partial withdrawal. The amount of top-up premium is
guaranteed on maturity provided the top-up premium was paid 10 years before the date of maturity and
there is no partial withdrawal made from the top-up fund.
Partial Withdrawals: These are allowed for units created by top-up premiums.
There is lock-in period of three years under the top-ups from the date of payment of top-ups during
which no partial withdrawal is allowed. The lock-in period is not applicable to Top-ups made during
last three years of a Policy. After partial withdrawal, the original Tranche of that particular top-up will
lose the Capital Guarantee. Where Life Assured is minor, partial withdrawals will be allowed only after
completion of age 18 years.
No partial withdrawals are allowed for basic regular premium funds.
Switching Option: You can switch the whole or part of the funds between funds D, E, F at any time
during the Policy Term. You can also switch from Return Shield option to any one fund D, E and F.
First four switches in any Policy year are free.
If Return Shield option is selected switching from any of the funds D, E, F in to Return Shield option
will be done at the end of every Policy month. Such switches will not be counted as part of the four
free switches during the Policy year.
Premium Redirection: You may instruct us in writing to redirect all the future premiums under a
Policy in an alternative proportion to the various Unit Funds available. Redirection will not affect the
allocation of premium(s) paid prior to the request.

49

Settlement Options: This option enables you to take the maturity proceeds in the form of periodical
payments after the Maturity Date instead of a lump sum on the Maturity Date. You can choose to
redeem the units in your Unit Fund anytime up to 5 years from the date of maturity. Capital Guarantee
is not available during this period.
During this period, there will be no Life Cover. The only fund option available during the settlement
period is Fund C. The maturity proceeds will automatically be transferred in to Fund C if settlement
option is selected. The Policy will participate in the performance of units of Fund C.
The Company will deduct Policy Administration Charges by cancellation of units. The Fund
Management Charge will be priced in the Unit Value.
In the event of death during settlement period the Fund Value as on the date of intimation at the office
will be paid to the nominee. ?In order to opt for this option the customer has to give notice of 30 days
to the Company before the Maturity Date.
During the settlement period, the investments made in the Unit Funds are subject to investment risks
associated with Capital Markets and the Unit Prices may go up or down based on the performance of
the fund and the factors influencing the Capital Market, and the Policyholder is responsible for his / her
decisions. The investment risk during the settlement period will be borne by the Policyholder.
Convenient Premium Paying options
you can pay the regular premiums in yearly, half yearly, quarterly and monthly mode and pay by cash,
cheque, debit/credit card, ECS & direct debit.
The minimum regular premium is Rs 10,000 for annual mode, Rs 5,000 for half-yearly, Rs 2,500 for
quarterly and Rs 1,000 for monthly mode. The minimum top-up premium is Rs 2,500.

Reliance Money Guarantee Plan at a glance

Basic Plan

Minimum

Maximum

Age at Entry

30 days

55 years last birthday

18

Age at Maturity

years

birthday

Policy Term

10 years

50

last

80 years last birthday

30 years

Optional Riders
Term Life Insurance Benefit Rider
18

Age at Entry

years

birthday
23

Age at Maturity

years

5 years

Sum Assured

25,000
Death

last

birthday

Policy Term

Accidental

last

and

Accidental

Total

59 years last birthday

64 years last birthday
30 years
Up to basic Policy Sum
Assured

and

Permanent Disablement Rider

18

Age at Entry

years

last

birthday
23

Age at Maturity

years

birthday

last

60 years last birthday

64 years last birthday

Policy Term

5 years

30 years

Sum Assured

25,000

Up

to

basic

policy

Sum

Assured subject to a maximum

of Rs 50,00,000 on accidental
death and Rs 500,000 per
annum on total permanent
disability.

What if I want to discontinue the Policy?

You may surrender your Policy at any time after three years from commencement.
Full Surrender Value under Basic Plan: The Surrender Value will be the Fund Value including
Return Shield Fund if selected as on the date of intimation of surrender under Basic Plan less Surrender
Charge as given below. On surrender of Basic Plan, any attaching Top-Ups will also be surrendered.
No partial Surrender Value is available under Basic Plan.
Year of surrender Basic Surrender Charge as % of Fund Value of
Plan

including Return Shield Fund if selected

51

1 to 3
2

Surrender Value not available

3
4

5%

3%

6+
Nil
Full Surrender Value or Partial Withdrawal Value under Top-Up : This will be available on
completion of three years from the date of payment of top-ups. The lock-in period of three years will
not be applicable to top-ups paid in the last three years of the plan. The full Surrender Value or Partial
Withdrawal Value is equal to the Fund Value being surrendered or being withdrawn. There is no
Surrender Charge or Partial Withdrawal Charge.
If a partial surrender is taken from the top-up, the Capital Guarantee on death and maturity (i.e. the
minimum Death Benefit of top-up premium on death at any time during the Policy Term and the
minimum Maturity Benefit of top-up premium paid provided a period of at least 10 years has elapsed
from the date of payment of top-up) will cease immediately on that Tranche of top-up.

Charges under the plan

Premium Allocation Charges: This is a percentage of the premium appropriated towards charges
from the premium received.
Year

Premium

Allocation

Charge

( as percentage of premium amount)

Year 1

30%

Year 2

7%

Year 3 onwards
5%
For top-up premium the Allocation Charge is 2%.
In case of policies under Exchange Option, the Allocation Charge in year of exchange will be 15% of
the annualised premium of Reliance Money Guarantee plan. During subsequent years, the Allocation
Charges mentioned in the above table will apply.

52

Policy Administration Charges: Rs 40 will be deducted per month per Policy (charged monthly
through cancellation of units).
Fund Management Charges: The Fund Management Charges under each fund are given below:
Fund Name

Annual Rate

Fund D

1.35% p.a.

Fund E

1.38% p.a.

Fund F

1.40 p.a.

Return Shield

1.25% p.a.

Fund DC
1.30% p.a.
The Fund Management Charge on each day is three hundred and sixty fifth of the Annual Charge and
will be deducted from the Assets of the Unit Linked Fund.
Switching Charge: First four switches in any Policy Year are free. There will be a charge of Rs100 per
switch on subsequent switches.
Charge for Return Shield Option: There will not be any charge for the Return Shield option under
following circumstances:
If the option is selected under Basic Plan on commencement of the plan
If the option is selected under top-up at the time of payment of top-up
Under all other circumstances, a fixed charge of Rs 100 is payable every time the Return Shield option
is selected
Mortality Charge: The Mortality Charges is based on your attained age, are determined using 1/12th
of the charges mentioned in the Mortality Charge table below and are deducted by canceling the units
from your fund every month.
Surrender Charge: This charge is levied on the Fund Value at the time of surrender of the Policy as
under:

Year

of

Surrender

of

Surrender

Charge

Basic Plan/top-ups

a percentage of fund value

1 to 3

Not allowed

5%

3%

6 onwards

Nil

53

as

Service Tax & other applicable charges: These charges are to be levied on the Mortality Charge and
on Rider Premiums. The level of this charge will be as per the rate of Service Tax along with the other
applicable taxes/ charges on risk premium, if any, as declared by the Government from time to time.
The current rate of Service Tax (including the Education Cess on Service Tax) on risk premium is
12.24%. Currently, this charge is borne by the Company. However, the Company reserves the right to
pass on this charge as well as other charges/taxes to the Policyholder in future.
Miscellaneous Charge: Fixed Miscellaneous Charge of Rs 2 per Rs 1000 Sum Assured will be
collected on inception of the Policy.
Premium for Rider Benefits: Premium for Rider Benefits will be collected over and above the premium
under Basic Plan.

Recovery of Charges
The one time Miscellaneous Charge on commencement of the Policy and the Allocation Charges will
be deducted from the premium amount before allocation of units.
The Fund Management Charges will be priced in the Unit Price of each Fund.
Mortality and Policy Administration Charges will be collected monthly in advance by cancelling the
units at prevailing Unit Price.
Switching Charge and Return Shield Charge will be collected at the time of transaction by cancelling
the units at prevailing Unit Price.
The Surrender Charge, if applicable, will be deducted from the Fund Value as a percentage of the Fund
Value.
Rider premiums will be collected over and above the premiums under Basic Plan and will not be
deducted through cancellation of units.
In the event that units are held in more than one fund, including Return Shield Fund, the cancellation of
units will be effected in the same proportion as the value of units held in each Fund. In case the Fund
Value in any Fund Value goes down to the extent that it is not sufficient to support the proportionate
applicable monthly charges, then the same shall be deducted from the Fund Value of the other funds
proportionately.

Change in rate of charges

The revision in charges as mentioned below will take place only after obtaining specific approval of
the IRDA. A notice of three months will be given to the Policyholders before any increase in the
charges.

54

If the Policyholder does not agree with the modified charges, he/she shall be allowed to withdraw the
units in the plan at the then prevailing Unit Value after paying it if any and terminate the Policy.
The Fund Management Charge may be increased up to 2.50% p.a. The Policy Administration Charge
may be increased up to Rs75 per month per Policy. The Switching Charge, charge for selecting STP
option can be increased up to Rs 1000 per transaction.
The Surrender, Premium Allocation, Mortality, Miscellaneous Charge and premium rates under riders
are guaranteed for the term of the Policy.

Reliance Endowment plan

Reliance Endowment Plan gives you just the financial independence to realise your dreams in the
future. It lets you decide how much you would like to set as your sum assured based on your current
financial position and your expected future expenses.
Key Features

On maturity receive Sum Assured plus bonuses

Wealth creation through bonus additions

More value for your money by way of High Sum Assured Rebate

Increase your insurance protection by adding Term Cover

Choose to pay regular or single premium

Choose to add the benefit of two riders - Critical Illness Rider and Accidental Death Benefit &
Total and Permanent Disablement Rider

Choose to avail of a Policy Loan after three full years of premium payment

How does this Plan work?

You pay premium every year for the entire term and get Sum Assured plus accumulated bonuses at
maturity. On death, your Beneficiary will get the Sum Assured plus accumulated bonuses.

Benefits
Maturity Benefit: On maturity you get Sum Assured plus accumulated bonuses (if any) till that date.
Life Cover Benefit: In the unfortunate event of loss of life, your family will receive the Sum
Assured plus accumulated bonuses (if any) till that date.

55

Rider Benefit: You also have the option to add three additional benefits to customize the Policy as
per your needs for the regular premium plan
a. Term Life Insurance Benefit Rider
b. Accidental Death Benefit & Total and Permanent Disablement Rider
c. Critical Illness Rider

56

Term Life Insurance Benefit Rider

Add the advantage of the Term Life Insurance Benefit rider to your basic Policy and increase risk
coverage.
In the event of unfortunate loss of life the Term Life Insurance Benefit is payable and the amount
payable is equal to the rider Sum Assured.
There is no Maturity Benefit.

Term Insurance
Minimum / Maximum Age at entry

18 / 59

Maximum Age at expiry

64 yrs (policy anniversary immediately following age)

Sum Assured

Rs 1,00,000

Equal to basic policy sum assured

Equal to basic policy term

Accidental Death Benefit & Total and Permanent Disablement Rider

Policy Term

Accidents are unfortunate and sometimes fatal. You can customise your basic Policy with an
Accidental Death Benefit & Total and Permanent Disablement Rider.
The Accidental Death Benefit is payable if death occurs directly as a result of an accident and is
intimated within 90 days of the occurrence.
The Benefit payable is equal to the Rider Sum Assured. The minimum Sum Assured is Rs 25,000 and
the maximum under all Policies taken together is Rs 50, 00,000.
The Total and Permanent Disablement Benefit is payable if the Life Assured becomes totally and
permanently disabled directly as a result of an accident.
The Disability Benefit is equal to the basic Sum Assured paid in ten equal annual installments
Total and Permanent Disablement is defined as the total and irrecoverable loss of sight of both eyes, or
loss by severance of two limbs at or above wrist or ankle, or total and irrecoverable loss of the sight of
one eye and loss by severance of one limb at or above wrist or ankle for a period of at least six months.

57

Inbuilt Waiver of Premium

If the Life Assured becomes totally and permanently disabled, then Reliance Life Insurance will waive
all future premiums under the basic Policy and riders up to a limit of Rs 40,000 p. a.
Accidental Death & Disability Benefit
Age at entry

18 yrs

59 yrs

Age at expiry

25 yrs

64 yrs

Sum Assured

Rs 25,000

Rs 50,00,000 (subject to a maximum of basic policy sum

assured)

Exclusions
The Company will not pay any Accidental Death Claim or Total and Permanent Disablement Claims
which results directly or indirectly from any one or more of the following:

An act or attempted act of self-injury,

Participation in any criminal or illegal act,

Being under the influence of alcohol or drugs except under direction of a registered medical
practitioner,

Racing or practicing racing of any kind other than on foot,

Flying or attempting to fly in, or using or attempting to use, an aerial device of any description,
other than as a fare paying passenger on a recognised airline or charter service,

Participating in any riot, strike or civil commotion, active military, naval, air force, police or
similar service, or

War, invasion, act of foreign enemies, hostilities or war like operations (whether war be
declared or not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped
power or any act of terrorism or violence.

Critical Illness
Sudden onset of a major illness causes worries and heavy expenses. Our optional Critical Conditions
Cover helps provide financial relief in such cases. It pays you the Sum Assured upfront in respect of
ten major illnesses.

Cancer

Coronary Artery Bypass Surgery

Heart Attack

Stroke

58

Kidney Failure

Aorta Surgery

Coma

Heart Valve Replacement

Major Organ Transplant

Paralysis

This Benefit can be availed only once against any one of the illnesses and the Company will not pay
the claim if it arises from deliberate self-injury or attempted suicide by the Life Assured, whether sane
or insane. This benefit will only be given, if the diseases are confirmed by a Consultant Physician.
Critical Illness
Age at entry

18 yrs

55 yrs

Age at expiry

23 yrs

64 yrs

Sum Assured

Rs 1,00,000

Minimum policy term

Rs 10,00,000 (subject to a maximum of basic policy sum

assured)

Exclusion with Critical Illness

Cancer: any CIN stage (cervical intraepithelial neoplasia); any pre-malignant tumour; any noninvasive cancer (cancer in situ); prostate cancer stage 1 (T1a, 1b, 1c); all skin cancers including
malignant melanoma stage IA (T1a N0 M0); any malignant tumour in the presence of any Human
Immunodeficiency Virus.
Heart Attack: Non-ST-segment elevation myocardial infarction (NSTEMI) with elevation of Troponin
I or T; other acute Coronary Syndromes.
Stroke: Transient ischemic attacks (TIA); neurological symptoms due to migraine.
Coronary Artery (Bypass) Surgery: Angioplasty and/or any other intra-arterial procedures; key-hole
surgery.
Paralysis: Paralysis due to Guillain-Barr-Syndrome.

59

Waiting and Survival period

The Company will not pay the Critical Illness Benefit if:

The critical illness begins prior to or within six months of the commencement date or date of
reinstatement of the Benefit - Waiting Period

Death from critical illness takes place within 30 days of the onset of the same Survival Period

Flexibility
These riders may be attached to your Policy at the beginning or at any Policy Anniversary during the
term of the Contract, subject to underwriting conditions prevailing at that time.
Sum assured for Critical Illness Rider may be increased or decreased by the Policyholder:

The increase is subject to underwriting conditions

Once decreased, further increases will not be allowed

The Contract can be terminated and opted for only once, by the Policyholder at any time. Though
above are general conditions of the rider, we may specify restrictions (like time of exercise) on the
above options. Such restrictions would be filed along with the based product filing.

Sample Illustration:
The tables below show the indicative annual premiums for individual Life Assured across different
Sum Assured and ages for a Policy Term of 20, 25 and 30 years.
Sum Assured: 1 Lakh
Age\Term

Sum Assured: 3 Lakh

20

25

30

20

25

30

4814

3733

3052

14142

10899

35

4897

3842

3192

14391

40

5039

4022

3421

45

5273

4318

3799

Sum Assured: 5 Lakh

30

20

25

30

8856

23070

17665

14260

11226

9276

23485

18210

14960

14817

11766

9963

24195

19110

16105

15519

12654

11097

25365

20590

17995

Indicative Maturity Benefit:

The table below shows the indicative Maturity Benefits for different Sum Assured levels for an
individual across different terms.

60

Maturity Benefit (Rs) @ 6%*

Sum Insured\Term

20

Maturity Benefit (Rs) @ 10%*

25

30

20

25

30

Rs 100,000

180611

209378

242726

320714

429187

574349

Rs 300,000

541833

628133

728179

962141

1287561

1723047

903056
1046889
1213631
1603568
2145935
2871746
(The above Maturity Benefits are calculated for an illustrative gross investment return of 6% & 10% as
Rs 500,000

stipulated by IRDA.)

What is the Policy Term?

Minimum Policy Term:

5 years

Maximum Policy Term:

Regular Premium - 35 years (Single)

Premium

15 years

Who can buy this product?

Minimum age at entry:

5 years

Maximum age at entry:

65 years

Minimum age at maturity:

18 years

Maximum age at maturity:

75 years

What is the Sum Assured?

Minimum Sum Assured:

Regular Premium - Rs 25,000 For Single

Premium it is determined

by the minimum premium

Maximum Sum Assured:

Entry age below 18 years - Rs 5,00,000

Entry age 18 years and above

No Limit

Savings and accumulation through bonuses

The Company will declare compounded reversionary bonus which is payable at maturity or on death
whichever is earlier.

More value for money High Sum Assured Rebate

Reliance Endowment Plan offers an attractive premium discount for Sum Assured over and above Rs
99,999.
For example, as per the tabular premium rates, the Annual Premium for a 30 year old male, a 25 year
policy of Rs 5 lakh Sum Assured comes to Rs 19,165 before the High Sum Assured Rebate. After the
High Sum Assured Rebate, the premium is Rs 17,665.
Sum Assured Range

High Sum Assured Rebate

Rs 100,000 Rs 249,000

Re 1 per 1,000 sum assured

Rs 250,000 Rs 499,000

Rs 2 per 1,000 sum assured

61

Rs 500,000 Rs 9,99,000

Rs 3 per 1,000 sum assured

Rs 10,00,000 and above

Rs 4 per 1,000 sum assured

Tax benefits
Premiums paid are eligible for tax deduction under Section 80C & 80D of the Income Tax Act, 1961.
Maturity & Death Benefit is tax free under Section 10(10 D) of the Income Tax Act, 1961. Under
Section 80C, premiums upto Rs 100,000 are allowed as deduction from your taxable income. Under
Section 80 D premium upto Rs 10,000 (Rs 15,000 for senior citizens) are allowed as deduction from
your
taxable
income.
(80 D - Applicable to Critical Conditions Premium)

Can I take a loan against my Policy?

The Policy loan can be up to a maximum of 90% of the Surrender Value of the Policy at the time of
taking the loan based on the terms and conditions at that time.
This facility is available on your regular premium plan after payment of 3 full years premium and after
3 years have elapsed from date of commencement of the Policy. However this facility is available
immediately, in case of the single premium plan. The interest will be charged on any outstanding loan
at a rate of interest set by us, from time to time.

What happens if one discontinues paying premium?

During the first three years, if premiums are not paid within the grace period the policy will lapse.
If you discontinue paying premium after paying premium for three full years, then your policy will be
converted in to a paid-up policy for a reduced Sum Assured determined in the same proportion as the
amount of premiums actually paid bears to the total amount of premiums payable. The life insurance
protection will continue to the extent of the paid-up value until the end of the policy term.
Any accumulated bonuses attached to this policy will remain attached in full. Once this policy becomes
paid-up, no further bonuses are payable. You will receive the paid-up Sum Assured plus bonuses
on the maturity date of the policy or in the event of loss of life.

Can I revive a policy which is lapsed?

A lapsed Policy can be reinstated for full benefits anytime before the date of maturity at terms and
conditions required by the Company.

Flexible Premium Payment Modes

Yearly with minimum premium payment of Rs. 2,000

Half-yearly with minimum premium payment of Rs. 1,500

62

Quarterly with minimum premium payment of Rs. 750

Monthly (only with salary deduction schemes) with minimum premium payment of Rs. 250

Single Premium with minimum premium payment of Rs. 25,000

Grace period
Regular Premium- one month or 30 days from the due date for payment of premiums Monthly
Premium - 15 days
General Exclusion
We will not pay any claim on death of the Life Assured, whether sane or insane, commits suicide
within 12 months from the date of issue of this Policy or the date of any reinstatement of this Policy.

Reliance Cash Flow Plan

While most insurance plans block your money for a certain period of time, Reliance Cash Flow Plan
gives you the double benefit of life insurance along with easy liquidity through lump sum cash. It
provides money periodically when you need it.
It lets you live life to the fullest today and at the same time, helps you stay protected for tomorrow by
giving you the flexibility of receiving a specified percentage of the Sum Assured at specified intervals.

Key Features

Easy Liquidity - Get periodic cash flows at the end of the fourth year and thereafter at the end
of every three years

Wealth creation through bonus additions

On maturity receive accumulated bonuses along with final lump sum payout

More value for your money by way of High Sum Assured Rebate

Full Sum Assured plus bonuses in case of your unfortunate death. This is over and above the
Survival Benefits already paid

Option to add two riders Critical Illness Rider and Accidental Death Benefit & Total and
Permanent Disablement Rider

63

How does this Plan work?

You pay premium every year for the entire term and get Survival Benefits at periodical intervals as
mentioned below.
On death, your Beneficiary will get the full Sum Assured, plus accumulated bonuses, over and above
the Survival Benefits already paid to you.

Benefits
Survival Benefit: Get a percentage of the Sum Assured on the fourth anniversary and on every third
Policy Anniversary till maturity.
Maturity Benefit: On maturity you get the remaining percentage of the Sum Assured plus
accumulated bonuses.
Life Cover Benefit: In the unfortunate event of loss of life, your Beneficiary will receive the full Sum
Assured plus accumulated bonuses till that date.
Rider Benefit: You also have the option to add two additional benefits to customize the Policy as per
your needs:

Accidental Death Benefit & Total and Permanent Disablement Rider

Critical Illness Ride

64

Accidental

Death

Benefit

&

Total

and

Permanent

Disablement

Rider

Accidents are unfortunate and sometimes fatal. You can customise your basic Policy with an
Accidental Death & Total and Permanent Disablement Benefit Rider.
The Accidental Death benefit is payable if death occurs directly as a result of an accident and is
intimated within 90 days of the occurrence.
The Benefit payable is equal to the Rider Sum Assured. The minimum Sum Assured is Rs 25,000 and
the maximum under all Policies taken together is Rs 50, 00,000.
The Total and Permanent Disablement Benefit is payable if the Life Assured becomes totally and
permanently disabled directly as a result of an accident.
The Disablement Benefit is equal to the basic Sum Assured paid in ten equal annual installments
Total and Permanent Disablement is defined as the total and irrecoverable loss of sight of both eyes, or
loss by severance of two limbs at or above wrist or ankle, or total and irrecoverable loss of the sight of
one eye and loss by severance of one limb at or above wrist or ankle for a period of at least six months

Inbuilt Waiver of Premium

If the Life Assured becomes totally and permanently disabled, then Reliance Life Insurance will waive
all future premiums under the basic Policy and riders up to a limit of Rs 40,000 p. a.
Accidental Death
Benefit &

Total and Permanent

Disablement Rider

Age at entry

18 yrs

59 yrs

Age at expiry

25 yrs

64 yrs
Rs

Sum assured

Rs 25,000

50,00,000

(Basic Policy Sum Assured subject to a

maximum of Rs 50,00,000 per life)

Exclusions
The Company will not pay any Accidental Death Claim or Total and Permanent Disablement Claims
which results directly or indirectly from any one or more of the following:

An act or attempted act of self-injury,

Participation in any criminal or illegal act,

Being under the influence of alcohol or drugs except under direction of a registered medical
practitioner,

65

Racing or practicing racing of any kind other than on foot, flying or attempting to fly in, or
using or attempting to use, an aerial device of any description, other than as a fare paying
passenger on a recognized airline or charter service,

Participating in any riot, strike or civil commotion, active military, naval, air force, police or
similar service, or

War, invasion, act of foreign enemies, hostilities or war like operations (whether war be
declared or not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped
power or any act of terrorism or violence.

Critical Illness
Sudden onset of a major illness causes worries and heavy expenses. Our optional Critical Conditions
Cover helps provide financial relief in such cases. It pays you the Sum Assured upfront in respect of
ten major illnesses.

Cancer

Coronary Artery Bypass Surgery

Heart Attack

Stroke

Kidney Failure

Aorta Surgery

Coma

Heart Valve Replacement

Major Organ Transplant

Paralysis

This Benefit can be availed only once against any one of the illnesses and the Company will not pay
the claim if it arises from deliberate self-injury or attempted suicide by the Life Assured, whether sane
or insane. This benefit will only be given, if the diseases are confirmed by a Consultant Physician.

66

Critical Illness Rider

Age at entry

18 yrs

59 yrs

Age at expiry

25 yrs

64 yrs
Rs

Sum assured

Rs 1,00,000

10,00,000

(Basic

Policy

Assured

subject to

maximum

of

Sum
a
Rs

10,00,000 per life)

Minimum Policy Term

Exclusion with Critical Illness

Cancer: Any CIN stage (cervical intraepithelial neoplasia); any pre-malignant tumour; any noninvasive cancer (cancer in situ); prostate cancer stage 1 (T1a, 1b, 1c); all skin cancers including
malignant melanoma stage IA (T1a N0 M0); any malignant tumour in the presence of any Human
Immunodeficiency Virus.
Heart Attack: Non-ST-segment elevation myocardial infarction (NSTEMI) with elevation of Troponin
I or T; other acute Coronary Syndromes.
Stroke: Transient ischemic attacks (TIA); neurological symptoms due to migraine.
Coronary Artery (Bypass) Surgery: Angioplasty and/or any other intra-arterial procedures; key-hole
surgery.
Paralysis: Paralysis due to Guillain-Barr-Syndrome.

Waiting and Survival Period

The Company will not pay the Critical Illness Benefit if:
The critical illness begins prior to or within six months of the commencement date or date of
reinstatement of the Benefit - Waiting Period
Death from critical illness takes place within 30 days of the onset of the same Survival Period.

Flexibility
These riders may be attached to your Policy at the beginning or at any Policy Anniversary during the

67

term of the Contract, subject to underwriting conditions prevailing at that time. Sum Assured for
Critical Illness Rider may be increased or decreased by the Policyholder:

The increase is subject to underwriting conditions

Once decreased, further increases will not be allowed

The Contract can be terminated and opted for only once, by the Policyholder at any time. Though
above are general conditions of the rider, we may specify restrictions (like time of exercise) on the
above options. Such restrictions would be filed along with the based product filing.

When & how much of Fixed Benefits paid?

Money Back survival benefits paid per Rs.1,000 sum assured
on survival to the end of year

Term
4

10

13

16

19

22

25

28

31

500

500

10

333

333

333

13

250

250

250

250

16

200

200

200

200

200

19

167

167

167

167

167

167

22

143

143

143

143

143

143

143

25

125

125

125

125

125

125

125

125

28

111

111

111

111

111

111

111

111

111

31

100

100

100

100

100

100

100

100

100

100

34

90.9

90.9

90.9

90.9

90.9

90.9

90.9

90.9

90.9

90.9

68

34

90.9

Sample Illustration:
The tables show the indicative premiums for an individual Life Assured across different Sum Assured
for a Policy Term of 16, 25 and 31 years
Sum Assured: 1 Lakh
Age\Term

16

25

Sum Assured: 3 Lakh

31

16

25

Sum Assured: 5 Lakh

31

16

25

30

8580

5950

5045

25440

17550

14835

41900

28750

24225

35

8700

6140

5295

25800

18120

15585

42500

29700

25475

40

8905

6445

NA

26415

19035

NA

43525

31225

NA

45

9320

7010

NA

27660

20730

NA

45600

34050

NA

What is the Policy Term?

Minimum Policy Term:

7 years

Maximum Policy Term:

34 years

Who can buy this product?

Minimum age at entry:

15 years

Maximum age at entry:

63 years

Minimum age at maturity:

22 years

Maximum age at maturity:

70 years

What is the Sum Assured?

Minimum Sum Assured:

Rs 25,000

Maximum Sum Assured:

No Limit

Savings and accumulation through bonuses

The Company will declare simple reversionary bonus which is payable at maturity or on death,
whichever is earlier.

69

31

More value for money High Sum Assured Rebate

Reliance Cash Flow Plan offers an attractive premium discount for Sum Assured over and above
99,999 as mentioned below. For example, as per the tabular premium rates, the annual premium for a
30 year old male for a 25 year Policy for Rs 5 lakh Sum Assured comes to Rs 30,250 before the High
Sum Assured Rebate. After the High Sum Assured Rebate, the premium is Rs 28,750.v
Sum Assured Range

High Sum Assured Rebate

Rs 100,000 Rs 249,000

Re 1 per 1,000 sum assured

Rs 250,000 Rs 499,000

Rs 2 per 1,000 sum assured

Rs 500,000 Rs 9,99,000

Rs 3 per 1,000 sum assured

Rs 10,00,000 and above

Rs 4 per 1,000 sum assured

Can I take a loan against my Policy?

No loan is available under this Policy

What happens if I discontinue paying premium?

During the first three years, if premiums are not paid within the grace period the Policy will lapse.
After the first three years if premiums are not paid within the grace period the Policy will be made paid
up and the Sum Assured will be reduced, firstly, in the proportion of completed duration to Original
Policy Term and
Secondly, by the amount of periodic lump sum payments already made.
Any accumulated bonuses attached to this Policy will remain attached in full. Once this Policy
becomes paid-up, no further bonuses are paid. You will receive the paid-up Sum Assured plus
bonuses on the maturity date of the Policy or in the event of loss of life. Once the Policy becomes paidup no further Survival Benefits are paid.

What if I want to discontinue the Policy?

We provide you the option to surrender your Policy and receive the Surrender Value. If your Policy has
accumulated any bonuses, then you will also receive the cash value of that total amount upon
surrendering your Policy.
Your plan acquires a Surrender Value after 3 years premium payment and after three years has elapsed
from date of commencement of Policy. We guarantee a minimum Surrender Value of 30% of the total
premiums paid (excluding any extra premiums and premiums for additional benefits) subsequent to the
first year premium, less the total of lump sum Survival Benefits already paid under this Policy.

70

On surrender, the insurance protection provided under the Policy will also cease.

Can I revive a Policy which is lapsed?

A lapsed Policy can be reinstated for full benefits anytime before the date of maturity at terms and
conditions required by the Company.

Flexible Premium Payment Modes

Yearly

Half-Yearly

Quarterly

Monthly (with salary deduction schemes only)

Grace period
There is a grace period of 30 days for payment of premium.

Reliance Credit Guardian Plan

Reliance Credit Guardian Plan ensures that your housing loans, personal loans or even outstanding
credit card bills are paid in the event of untimely demise. Thus keeping you and your family protected
from the burden and the worry of debt in such a situation.
Key Features

Different types of loans are covered under this Policy - housing Loans, Personal Loan,
outstanding on credit cards etc

Limited premium paying term

Single & regular premium payment option Discount on premium rates for women

Decreasing term insurance

How does this Plan work?

You pay premium every year for the premium paying term you choose. The Sum Assured decreases for
a given interest rate as mentioned in the Policy Document. On death, your Nominee will get the Sum
Assured.
No Survival Benefit is payable under this plan.

71

Benefits

In the unfortunate event of loss of life, the Nominee will receive the Sum Assured as per the Policy
Schedule.

Reliance Child Plan

Reliance Child Plan helps you save systematically so that you can give your child the much-needed
financial security in the future. Simply put, Reliance Child Plan gives you the freedom to enjoy every
moment with your child today, without worrying about his/her tomorrow.

Key Features

Risk protection for you during the term of the Policy

Accumulated bonus at the end of the Policy Term

25% of Sum Assured payable every year as lump sum benefit during the last four Policy
anniversaries

All future premiums are waived in the event of unfortunate loss of life

Guaranteed Fixed Benefits continue even after loss of life of the Policyholder

More value for your money by way of High Sum Assured Rebate

Choose to add the benefit of two riders Critical Illness Rider and Accidental Death Benefit &
Accidental Death Benefit & Total and Permanent Disablement Rider

Policy participates in profit even after the loss of life of the Life Assured

How does this Plan work?

You pay premium every year for the entire term and get guaranteed fixed benefits every year during the
last four years of the Policy Term.
On death, your Beneficiary will get the Sum Assured, guaranteed fixed benefits on specified dates and
all future premiums will be waived.
All attached bonuses are payable at the end of the Policy Term and will remain attached to your Policy
even after payment of Life Cover Benefit.
Benefits

72

Life Cover Benefit: In the unfortunate event of loss of life, your Beneficiary will receive the Sum
Assured immediately and all future premiums will be waived.
Guaranteed Fixed Benefit: Get 25% of Sum Assured every year on the last four Policy Anniversaries
irrespective of the survival of the Life Assured.
For example if you have taken a Policy for Rs 1 lakh for 20 years, then fixed benefits payable will be
Rs 25,000 each at the end of 17th, 18th, 19th and 20th year.
Maturity Benefit: On maturity you get accumulated bonuses irrespective of the survival of the Life
Assured.
Rider Benefit: You also have the option to add two additional benefits to customize the policy as per
your needs.

Accidental Death Benefit & Total and Permanent Disablement Rider

Critical Illness Rider

Accidental Death Benefit & Total and Permanent Disablement Rider

Accidents are unfortunate and sometimes fatal. You can customise your basic Policy with an
Accidental Death Benefit & Total and Permanent Disablement Rider.
The Accidental Death Benefit is payable if death occurs directly as a result of an accident and is
intimated within 90 days of its occurrence.
The Benefit payable is equal to the Rider Sum Assured. The minimum Sum Assured is Rs 25,000 and
the maximum under all Policies taken together is Rs 50, 00,000.
The Total and Permanent Disablement Benefit is payable if the Life Assured becomes totally and
permanently disabled directly as a result of an accident.
The Disability Benefit is equal to the basic Sum Assured paid in ten equal annual installments
Total and Permanent Disablement is defined as the total and irrecoverable loss of sight of both eyes, or
loss by severance of two limbs at or above wrist or ankle, or total and irrecoverable loss of the sight of
one eye and loss by severance of one limb at or above wrist or ankle for a period of at least six months.

Reliance Connect 2 Life Plan

Reliance Connect 2 Life Plan helps you build security & savings for a better tomorrow. As your
income is likely to grow, you should also ensure that you have sufficient protection for your near and

73

dear ones. Reliance Connect 2 Life Plan ensures that you have the option to upgrade your life cover to
keep pace with your changing lifestyle.
Key Features & Benefits

On survival of the life assured until maturity, the Plan pays the sum assured plus simple
vested bonuses to the policyholder.
Maturity Benefit:

Death Benefit: In case of unfortunate death of the life assured before the maturity date, the Plan pays
the sum assured plus simple vested bonuses to the nominee.

Choice of two plans: At the time of initial purchase of Reliance Connect 2 Life Policy, you have two
kinds of plans to choose from namely, Gold Plan and Silver Plan.

The Reliance Connect 2 Life Gold Plan offers a life cover of Rs 2,00,000 initially. You may
enhance your life cover to a maximum of Rs 10,00,000 in two stages by exercising your option.

The Reliance Connect 2 Life Silver Plan offers a relatively lower life cover of Rs 1,00,000
initially. You may enhance your life cover to a maximum of Rs 5,00,000 in two stages by
exercising your option.

Options to enhance life cover: Under each of the above two plans, you have an option to enhance
your life cover amount:

At the end of one year from the date of initial purchase of Reliance Connect 2 Life Gold /
Silver Plan, you are entitled to enhance your life cover by exercising your option to purchase
an additional Reliance Connect 2 Life Policy.

Provided you have exercised your option to enhance life cover at the end of the first year, you
are entitled to enhance your life cover again at the end of the second year by purchasing an
additional Reliance Connect 2 Life Policy.

Other Benefits: Reliance Connect 2 Life Plan comes to you with a host of other benefits:

No medical examination and minimal paperwork

A profit plan

High sum assured rebate for large life cover per policy

Policy loan after 3 years

Tax benefit under Section 80C & 10(10)D of IT Act

74

COMPARISON BETWEEN PUBLIC

COMPANY AND PRIVATE COMPANY
There are 15 Private Players and One public player in Life Insurance
Market:Public Player: Life Insurance Corporation of India

Private Players:1. Bajaj Allianz Life Insurance Company Limited

2. Birla Sun Life Insurance Company Limited
3. HDFC Standard Life Insurance Company Limited
4. ICICI Prudential Life Insurance Company Limited
5. ING Vysya Life Insurance Company Limited
6. Max New York Life Company Limited
7. Met Life India Insurance Company Limited Private Limited
8. Kotak Mahindra OM Life Insurance Limited
9. SBI Life Insurance Company Limited
10. TATA AIG Life Insurance Company Limited
11. Reliance Insurance Company Limited
12. Aviva Life Insurance Company India Private Limited
13. Sahara India Life Insurance Company Limited
14. Shriram Life Insurance Company Limited
15. Bharti AXA Life Insurance Company Limited

75

NO. OF POLICIES OFFERED BY

DIFFERENT COMPANIES
Some of them are:Life Insurance Corporation

50(approx)

Reliance Life Insurance

17 + 4 (Individual + Corporate)

ICICI Prudential Life Insurance 25

Aviva Life Insurance

12

HDFC standard life insurance

13

Bajaj Allianz life Insurance

15

Life Insurance Corporation of India is No.1 Company in Life Insurance Market and it has 74% Market
Share.
In private Players ICICI Prudential is at no.1 Position and Reliance Life is at no.5. When Reliance
Entered in this field it was at no. 14 and now it is on 5 th position so we can say that it is growing
dramatically because within 1 and half year it captured no. 5 th spot.

76

PREMIUM UNDERWRITTEN BY LIFE INSURERS IN INDIA

2007-08
(Rs. In Crore)

Sl. no. Insurer

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

st

1 Year
Premium
LIC
13728.03
ING Vysya
257.31
HDFC Std.Life 825.47
Birla Sunlife
640.60
ICICI Prulife
2293.46
Kotak Mahindra 363.55
TATA AIG
432.70
SBI Life
457.72
Bajaj Allianz
1209.26
Max Newyork
441.51
Metlife
138.31
Reliance Life
73.36
Aviva
395.13
Sahara
9.02
Shriram Life
10.33
Private Total
7547.73
Total
21275.76

77

Renewal
Premium
62276.35
141.40
527.26
581.56
1658.54
225.79
415.67
247.50
416.81
316.76
57.46
30.65
193.14
1.32
4813.87
67090.22

Single
Premium
14787.84
26.68
217.18
37.51
309.04
32.51
31.83
370.10
1507.51
29.86
10.21
120.19
11.99
17.32
2721.94
17509.78

Total
Premium
90792.22
425.38
1569.91
1259.68
4261.05
621.85
880.19
1075.32
3133.58
788.13
205.99
224.21
600.27
27.66
10.33
15083.54
105875.76

First Year Premium of Life Insurers for the Period Ended May 2007
Sl
No.

Insurer
1

Premium
Upto MAY, 07
34.57
369.06
1.41
3.43

8290
297389
0
44

1216
96001

2.6
56.24
0.85
0.73

194
32962
0
2

168
23708

10.36
80
6.88
2.34

2288
54542
7
45

7351
68373

69.99
143.53
25.85
30.27

10114
51690
0
6

14337
51899

Reliance Life
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

Upto MAY, 07

ING Vysya
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

No. of Lives
Covered Under
Group Schemes

Bajaj Allianz
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

No. of Policies/
Schemes
Upto MAY, 07

SBI Life
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

78

Tata AIG
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

55910
127925

4.67
69.65
0.41
9.88

6179
32844
2
8

473
6846

3.26
83.6
0.71
4.07

473
34742
0
11

242
60357

2.74
58.14
2.12
4.51

344
22340
0
39

12182
65720

28.53
125.78
0
2.16

1704
88579
0
100

0
44129

3.2
48.61
1.93
0

465
15519
10
0

36152
0

2.02
4.46
0
0

569
7484
0
0

0
0

Sahara Life
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

14

8052
261716
41
122

Met Life
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

13

50.38
451.73
46.75
83.66

Max New York

Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

12

16866
12803

Kotak Mahindra Old Mutual

Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

11

12167
62676
12
9

Aviva
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

10

13.98
180.94
3.26
24.52

Birla Sunlife
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

72320
34062

ICICI Prudential
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

451
67206
0
7

HDFC Standard
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

3.18
81.8
11.17
4.36

Shriram Life

79

Individual Single Premium

Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
15

2025
7862
0
0

0
0

0.04
2.24
0
0

4
2306
0
0

0
0
0
0

239.06
1771.5
101.34
169.93

53319
1039857
72
393

217217
591823

1320.35
2759.88
969.64
0

376187
3309588
2047
0

2419311
0

1559.41
4531.38
1070.98
169.93

429506
4349445
2119
393

2636528
591823

Bharti Axa Life

Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
Private Total
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

16

9.54
15.71
0
0

LIC
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

Grand Total
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium

80

FINANCIAL HIGHLIGHTS
Financial Highlights for the year ended March 31, 2008
Consolidated Total Income of Rs 2158 crore (US$ 511.9 million), against Rs 947 crore in the
corresponding previous period, an increase of 128%
Consolidated Net Profit of Rs 703 crore (US$ 166.8 million), against Rs 572 crore in the corresponding
previous period, an increase of 23%
Total Income of Rs 884 crore (US$ 209.7 million), against Rs 652 crore in the corresponding previous
period, an increase of 36%
Net Profit of Rs 646 crore (US$ 153.3 million), against Rs 538 crore in the corresponding previous
period, an increase of 20%
Consolidated Earning per share (EPS) of Rs 30.73(US$ 0.73), against Rs. 26.19 in the corresponding
period previous year, an increase of 17%
Earning per share (EPS) of Rs 28.39 (US$ 0.67), against Rs 24.64 in the corresponding previous
period, an increase of 15%
Total Assets of the company stood at Rs. 6,769 crore (US$ 1.61 billion)

81

MARKET SHARE HOLDING BY PUBLIC

AND PRIVATE COMPANIES
In a tough battle to expand market shares the private sector life insurance industry consisting 14 life
insurance companies at 26% have lost 3% of market share to the state owned Life Insurance
Corporation (LIC) in the domestic life insurance industry in 2006-08.
According to the figures released by Insurance Regulatory & Development Authority the total
premium these 14 companies have shot up by 90% to Rs 19,471.83 crore in 2006-08 from Rs 10, 252
crore.
LIC with a total premium mobilization of Rs 55,934 crore has been able retain a market share of 71.01
% during the reporting period. In total the life insurance industry in first year premium has grown by
110% to Rs 75, 406 crore during 2006-08. The 2006-08 performance has thrown a few surprises in the
ranking among the private sector life insurance companies. New entrants like Reliance Life and SBI
Life had shown a huge growth of over 381% and 210% respectively during the year. Reliance
Life which has become one of the top five companies ended the year with a premium of Rs 930
crore during the year.
Though ICICI Prudential Life Insurance remained as the No 1 private sector life insurance Company
during the year Bajaj Allianz overtook ICICI Prudential in terms of monthly market share in March, for
the first time ever. Bajaj's market share among private players in non-single premium for March stood
at 29.1% vs. ICICI Prudential's 23.8%. Bajaj gained 4.6 percentage point market share among private
sector players for FY08.
Among other private players, SBI Life and Reliance Life continued to do well, each gaining 4% market
share in FY07. SBI Life's growth was driven by increasing contribution from ULIP premiums. Another
notable development of the 2006-08 performance has been the expansion of retail markets by the life
insurance companies. Bajaj Alliannz Life insurance has added 20 lakh policies while ICICI Prudential
has expanded over 19 lakh policies during the year.

82

83

AGENTS LICENSED BY AUTHORITY IN

(2006-08)
Individual agents
Name
Bajaj Allainze
TATA AIG Life
AMP Sanmar
Birla Sun Life
Aviva Life
HDFC Standard
ICICI Prudential
ING Vysya
LIC
Max New York
Metlife India
OM Kotak Mahindra
Sahara India
Shriram Life
SBI Life
Reliance Life
Sub Total

Corporate Agents

New Renewal
New
Renewal
78826
1365
18
18051
1277
10
14034
255
4
11101
778
15
9178
23
2
14762
1940
6
41552
2930
1
13689
354
0
155250
316752
15
11941
596
10
8217
124
1
6920
443
5
80
1
0
5935
2
0
4749
310
3
31215
640
22
425500
327790
112

84

8
10
0
19
1
9
6
0
59
2
1
6
0
0
5
6
132

Total
New
Renewal Total
78844
1373
80217
18061
1287
19348
14038
255
14293
11116
797
11913
9180
24
9204
14768
1949
16717
41553
2936
44489
13689
354
14043
155265
316811 472076
11951
598
12549
8218
125
8343
6925
449
7374
80
1
81
5935
2
5937
4797
315
5112
31237
646
31883
425657
327922 753579

Agency at Reliance:Liberalization of insurance business in India has made a sea change in the insurance industry. The
market is opened for private players and the vast potential in the life business is explored steadily.
Agency, one of the modes of bringing in the most needed business to the company has a lot of scope as
the industry has a charm to grow at an exponential rate and needless to say this industry is called as a
sun rise industry.
Agents are called as financial advisors in Reliance Life Insurance. To procure life insurance business,
Advisors occupy an intermediary position and are remunerated appropriately according to the business
generated.
Insurance Advisors are bound by the terms of appointment of the insurer and can act as an Independent
Professional following the business ethics and business culture. Advisors have the liberty to choose
their flexible timing and work in their suitable phase.
Advisors have an important role to play because they give their valuable advice in their prospects
financial planning. Advisors gain expertise by knowing the latest happening in the industry and use the
same up to date information to the financial progress and prosperity of the prospect.

85

Advisor ship in Reliance Life Insurance means tremendous growth and empowerment in terms of
knowledge, personality development and wealth.

86

ELIGIBILITY CRITERIA FOR BECOMING

AN ADVISOR IN RLI: Age Minimum 18 years.
Educational qualification..12th Pass.
Documents Required:1. Age Proof
2. Educational Qualification Proof
3. Address Proof (Optional)
4. Photographs (09)

Procedure For Becoming An Advisor in RLI:The Insurance Act, 1938 lies down that an insurance agent must possess a license under Section 42 of
the Act. The License is to be issued by IRDA. The IRDA has authorized designated person, in each
insurance company to issue the license on behalf of IRDA.

The agent should have to complete at least 25 hours of training in life insurance or general
insurance business or at least 50 hours training in life and general insurance business in the
case of a composite insurance agent.

Insurers, who select agent for appointment, make arrangement for training, for appearing in the
prescribed examination, and obtaining the license from IRDA.

IRDA also gives online training and provides a certificate also of online training.

Advisor must have to clear an examination conducted by IRDA for that an Admit card is issued
by IRDA.

When candidate gets pass in the examination, a license is issued by IRDA.

Terms and condition:

License will be valid for 3 years.

If anyone wants to get transfer he/she should give a resignation later.

An advisor will have to sell at least 12 life insurance policies in 12 month time other wise
license will be cancelled by IRDA.

87

Benefit Available for Advisors at RLI:An Advisor can earn:1st year

No. of cases
50
Avg. premium
15,000
Total premium collected
7,50000
Avg. Commission
25%
1 year commission
1,87,500
2 year commission @ 7.5% 3 year commission @ 7.5% Total commission
1,87,500

2nd year
75
20,000
15,00000
25%
3,75,000
56,250
4,31,250

3rd year
100
22,000
22,00000
25%
5,50,000
1,12,500
56,250
7,18,750

A top performer can earn:1st year

No. of cases
100
Avg. premium
15,000
Total premium collected
15,00,000
Avg. Commission
25%
1 year commission
3,75,000
2 year commission @ 7.5% 3 year commission @ 7.5% Total commission
3,75,000

2nd year
150
20,000
30,00,000
25%
7,50,000
1,12,500
8,62,500

88

3rd year
200
22,000
44,00,000
25%
11,00,000
1,12,500
1,25,000
14,37,500

CARRIER OPPORTUNITY: Opportunity to move on to the company payroll on Managers profile. An Advisor can get job
in the company on the company payroll of managerial rank like SM.

Opportunity to make it big by moving in as entrepreneur (recruit agency work force under you)
business associate.

Other Benefits:Wealth

Additional loyalty program benefits

Extra payouts depending on your performance (loyalty programs)

Take home your dream vehicle!

89

VISIT YOUR DREAM LOCATIONS!

90

FINDINGS
Major findings of the study are:

Public prefer private insurance mainly for the reasons such as timely service, better service,
friendly approach, better communication, immediate attention, influence of friends and
relatives as agents.

Aged people have more concern for economic factors compared to youngsters while studying
the reasoning for private policy preference. All other factors like service, human relations,
product and comfort do not vary significantly based on age though the reasoning levels are
high.

Income, gender, experience with private insurance co., do not exert any significant level of
difference relating to the factors like service, human relations, economic, comfort and product.

Respondents who are experiencing both private and government policies find that the private
insurance schemes are more attractive.

The most important means of creating awareness are agents, friends, relatives and
advertisements.

Only 47.5 per cent of the respondents are found to be willing to recommend private insurance
but 80 per cent of them are willing to opt for private policies in the future.

Customers are found to highly satisfied with service facilities, human relations and attractive
schemes.

Age and income did not exert any significant level of difference in the satisfaction level of the
customers regarding service, product, human relations, economic factors and comfort.

Female respondents are more satisfied with the comfort they experience in the private
insurance company compared to male. Satisfaction relating to other service and products,
economic and human relations does not vary based on gender.

Experience with the private insurance company also varies in the satisfaction level of comfort.
Fresher to private insurance found to be more comfortable than those who are more
experienced. Satisfaction level does not vary relating to the factors such as services, economic
and human relations factor based on experience with private insurance company.

91

Significant level of variation has not been observed in any differences relating to service and
product, comfort, economic and human relations factors based on income.

Respondents who already possess insurance from government corporations are found to be
highly satisfied with the human relation aspect compared to those who have only private
insurance .This factor does not contribute much on service and product, economic and comfort
aspects.

92

SUGGESTIONS

Advertising of the insurance product should stress on the need of security.

Insurance should be popularized as the means of securing future rather than saving tax.
New entrants should come out with innovative riders.
Policies should be issued quickly and with less formalities
Other service should also be improved.
Newspaper/Magazines and television are the most effective medium of advertising life
insurance.
Insurance agents should be well trained.
Dividend for the Financial Year 2007-08
The Board of Directors of the Corporation has recommended payment of dividend of 170%
(Rs. 17
per share), for the financial year ended March 31, 2008, for approval of the shareholders at the AGM.
[Previous year 135% (Rs. 13.50 per share)].
Dividend entitlement is as follows:
For shares held in physical form: shareholders whose names appear on the register of members
of the Corporation as at the close of business hours on June 30, 2008.
For shares held in electronic form: beneficial owners whose names appear in the statements of
beneficial position furnished by NSDL and CDSL as at the close of business hours on June 30,
2008.

93

RECOMENDATION
There are certain flaws existing in this working of the insurance industry. There are some of the
recommendation we ad come up with while doing this project. It will help to make insurance more
important sector in todays economy.
The need of the hour is to devise a comprehensive strategy that will help the firms face the challenges
of the future. The financial services industry around the world over is undergoing a major
transformation. It is very important that trained marketing professionals who are able to communicate
specific features of the policy should sell the policy.
From our research we could find out that people are not aware about the policies and features of
insurance. Therefore LIC and Reliance are recommended to shed light on policies and explain the
benefits, thus increasing the awareness.
The penetration of insurance in India is around 22%. This indicates that a vast majority of rural
population is not covered. The market player needs to explore this untapped potential through their
marketing and sales network.
The returns of the policies are not properly managed and never given in time. So, these must be looked
at.
Pricing of insurance products, as empirically available in India, shows that pricing is not in consonance
with market realities. Life Insurance premium is generally perceived, as being too high while general
insurance (especially motor insurance) is priced too low.
Some insurance products, which are not available in India, should, be introduced in market. There are
areas for new product development: Industry all risk policies, Large projects risk cover, Risk beyond
a floor level, Extended public and product liability cover
Insurance companies will also had to get savvy in distribution. Enhanced marketing thus will be
crucial. Already many companies have full operation capabilities over a 12-hour period. Facilities such
as customer service center are already into 24-hour mode. These will provide services such as motor
vehicle recovery. Technology will also play an important role on the market.
The lines of distinction between banks insurance companies and brokerages are getting blurred. The
future seems to belong to financial supermarkets that will offer a host of services and products to the
consumer. In the next millennium all these activities would play a crucial role in the overall
development and maturity of the insurance industry

94

BIBLIOGRAPHY
The various sources from where I collected datas are as follows.
Internet Sites:
http://www.reliancelife.co.in/website/our_founder.asp
http://www.reliancelife.co.in/website/aboutus.asp
http://www.reliancelife.co.in/website/products/reliance_automatic_investment
_plan.asp
http://www.reliancelife.co.in/website/products/reliance_money_guarantee_pla
n.asp
News Papers:1. The Economic Times.
2. Times of India
Books :1. C.R. Kothari
2. Philip Kotler
Magzine
1. Business Magzine

95

RESEARCH METHOD
Private insurance companies are gaining their market share considerably in very short tenure. In spite
of the good will trust and established network of government corporations, this rapid change is
observed in India. Private companies focus on friendly approach and better service. This paper aims at
studying why the public mainly prefers private companies. The specific objectives of the study are
stated below:
1. To identify the reasons for preferring private insurance companies.
2. To verify

whether

the

preference

varies

between

those

who

hold

government

insurance policies and those who do not possess.

3. To understand the level of satisfaction relating to the different aspect of the private companies.

DATA Collection
To collect the primary data to know about the views of the clients about various factors relating to the
private insurance companies, a questionnaire is used to collect the data relevant to objectives specified.

Sampling Plan
To study the aforementioned objectives, Reliance Life Insurance Company Ltd., Jansath, Muzaffarngar
is located is chosen as the area of study .This small Place has mixed population where people from
various background and various profile are visiting .Based on the pre-test it is observed that the
commonly known private insurance companies are HDFC Standard Life and ICICI. Around 50 people
have purchased ICICI. Among them 20 respondents have been randomly chosen .The designed
questionnaire has been distributed to the selected respondents; 17 have responded.

96

CONCLUSION
There has been tremendous change in the insurance history. And with it there has been continuous
growth in this sector both in Indian as well as world context.
The opening up of the insurance sector has changed the whole look of the industry. While the LIC in
order to face the competition is coming with new strategies. New players like Reliance are leading the
sector due to their strategic management and tailored made projects.
From our research also we conclude that though the awareness and people opting for LIC plans are
more as compare to MNYLbut the later are gaining momentum in the market day by day.
The primary reasons for buying an insurance policy, whether life or non-life is to protect us from
vagaries of life. We do not invest in insurance for returns; rather we invest in it for regrettable
necessities. Though a large proportion of policies available in the country provide for returns, but
nobody is looking for returns to the inflation rate. So what does insurance offer, perhaps peace of mind,
but even that takes time, due to poor claim performance
The demand for insurance is likely to increase with rising per-capita incomes, rising literacy rates and
increase of the service sector, as has been seen from the example of several other developing countries.
In fact, opening up of the insurance sector is an integral part of the liberalization process being pursued
by many developing countries?
Insurance is a Rs.400 billion business in India and yet its spread in the country is relatively thin.
Insurance as a concept has not been able to make headway in India. There has been a strong fall in
insurance business in recent years. Furthermore, it can be observed that non-life business is not
increasing as strongly as life business. On the other hand, growth fluctuations have been relatively
small with growth rates varying between 1% and 5%. Life insurance business by contrast achieved
average growth rates of 6%, although the actual rates ranged from 0% to 13%. This shows on the one
hand the increasing significance of life insurance as an instrument for old age provisions and on the
other hand indicates the sensitivity of life insurance to changes in the institutional and economic
environment.
So lets conduct this business with utmost economy with the spirit of trusteeship; thereby making
insurance widely popular.

97