Stress Management Towards Employees in Reliance Life Insurance Suresh

RELIANCE LIFE INSURANCE, KOPPAL
CONTENTS
Chapter 1 Rationale for the study 1

Chapter 2 Objective of the study 2-3
• Title of the project
• Objective of the study
• Scope of the study
Chapter 3 Profile of the company 4-49
Chapter 4 Theoretical Perceptive 50-68
Chapter 5 Research Methodology 69-71
Research Design
Data collection methods / sources
Sampling plan which should include sampling unit,
sampling size and sampling methods via questionnaire
methods, interview methods, observations etc
Chapter 6 Data analysis and interpretations using various charts and 72-92
graphs
Chapter 7 Findings 93-94
Chapter 8 Limitations if any 95
Chapter 9 Expected contribution from the study 96-97
Appendix and Bibliography 98-101
RATIONALE FOR THE STUDY

Stress has become a major concern of the modern times as it can cause harm to
employees’ health and performance. Work related stress costs organization high each
year through sickness, turnover and absenteeism.
How do you cope with stress in the workplace to achieve a more balanced lifestyle?
Stress is a part of everybody's life. Depending on the level of stress, it can control our
lives, especially in the workplace. We begin to spend several long hours at work, and
thus have less time for other things. Stressed employees may be unhappy and thus
produce nominally. Stress can deteriorate social and family relationships and eventually
burn you out; ultimately it can take toll on your health. Organizations need to recognize
stress as a problem and decide whether or not to act upon it. So, it becomes necessary for
every organization to know the level of stress and its consequences on the employee
performance as well as productivity so as to overcome it.
Situations themselves are not stressful, they simply happen. The stress results from the
way we perceive those situations. Stress often occurs when we feel we are powerless to
change the things that are impacting on our lives.
This study on the impact of stress on employees of Reliance Life Insurance Ltd was
conducted to know the level of stress and its consequences faced by the employees .
TITLE OF THE PROJECT

“Stress management towards employees in reliance life insurance”
OBJECTIVE OF THE STUDY
The objectives of the study are as follows:
Primary objective
➢ To study the stress level of the employees at work
Secondary objective
➢ To study the various reasons that leads to stress in employees
➢ To determine the overall consequences of stress on their work.
➢ To study the measures taken to manage stress
SCOPE OF THE STUDY
Stress is emerging as a major problem for many successful people. Stress has become a
major concern of the modern times as it can cause harm to employees’ health and
performance. Stress can deteriorate social and family relationships and eventually burn
you out; ultimately it can take toll on your health. Organizations need to recognize stress
as a problem and decide whether or not to act upon it.
The study will help in understanding the factors that leads to stress at work and the
measures taken to overcome stress of the employees.
The study will further lead to recognition of the stressors which may affect their
employees’ performance on work. The study may lead to recognition of the more
advanced and latest technology for reducing the stress of the employees.
The study will lead to solving the problems of the employees at work. It will define the
ways in which the organization can further in making the climate of the organization
friendlier.
PROFILE OF THE COMPANY
RELIANCE LIFE INSURANCE CO. LTD.

Few men in history have made as dramatic a contribution to their country’s economic
fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left
behind a legacy that is more enduring and timeless.
• As with all great pioneers, there is more than one unique way of describing the true
genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud
patriot, the leader of men, the architect of India’s capital markets, the champion of
shareholder interest.
• But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth
creator. In one lifetime, he built, starting from the proverbial scratch, India’s largest
private sector enterprise.
• When Dhirubhai embarked on his first business venture, he had a seed capital of
barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he
converted this fledgling enterprise into a Rs 60,000 crore colossus—an achievement
which earned Reliance a place on the global Fortune 500 list, the first ever Indian
private company to do so.
• Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when
Reliance Textile Industries Limited first went public, the Indian stock market was a
place patronized by a small club of elite investors which dabbled in a handful of
stocks.
• Undaunted, Dhirubhai managed to convince a large number of first-time retail

investors to participate in the unfolding Reliance story and put their hard-earned
money in the Reliance Textile IPO, promising them, in exchange for their trust,
substantial return on their investments. It was to be the start of one of great stories of
mutual respect and reciprocal gain in the Indian markets.
• Under Dhirubhai extraordinary vision and leadership, Reliance scripted one of the
greatest growth stories in corporate history anywhere in the world, and went on to
become India’s largest private sector enterprise.
• Through out this amazing journey, Dhirubhai always kept the interests of the ordinary
shareholder uppermost in mind, in the process making millionaires out of many of the
initial investors in the Reliance stock, and creating one of the world’s largest
shareholder families.
RELIANCE CAPITAL
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s 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.
Reliance capital entered into the life insurance business by acquiring AMP Sanmar in
October 2005. The business was thereafter renamed Reliance Life Insurance. Today
RLIC has over 20 products - 16 individual plans and 4 employee benefit plans - including
the two new innovative products – Connect to Life and Reliance Money Guarantee Plan -
that were launched recently.
Reliance Life Insurance Company (RLIC) has been accorded the ISO 9001-2000
certificate for its best-in-class management systems in Quality, Customer & Process
orientation.
With this, RLIC is one of the only two life insurance companies in India to get ISO
9001:2000 certification covering all functional areas.
The scope of the certification covers the entire gamut of business processes ranging from
product design, sales - front-end and back-end operations, customer care and investment,
to all business support functions. The certification has been awarded by internationally
acclaimed Bureau VERITAS and is valid till 2010 subject to continued satisfactory
operation of RLIC's Quality Management System.
"This certification is a significant milestone in our continuous quest to offer innovative

products, outstanding services and improved customer satisfaction. It indicates that we
have been able to install systems, processes & performance measures that are in line with
the best in the industry and will form the basis of our business growth in future", said P
Nandagopal, CEO, Reliance Life Insurance Company.
Reliance Life Insurance is the fastest growing life insurance company in India and has an
incremental market share of 4 per cent amongst private insurers. The company has third
largest distribution network in terms of number of agents operating out of 143 locations
across the country.
CORPORATE OBJECTIVE
At Reliance Life Insurance, we strongly believe that as life is different at every stage, life
insurance must offer flexibility and choice to go with that stage. We are fully prepared
and committed to guide you on insurance products and services through our well-trained
advisors, backed by competent marketing and customer services, in the best possible
way.
CORPORATE VISION AND MISSION
Vision
Empowering everyone live their dreams
Mission
Create unmatched value for everyone through dependable, effective, transparent and
profitable life insurance and pension plans.
Our Goal
Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below:
Emerge as transnational Life Insurer of global scale and standard
Create best value for Customers, Shareholders and all Stake holders
Achieve impeccable reputation and credentials through best business practices
Achievements
• RLIC has been one of the fast gainers in market share in new business premium
amongst the private players with an incremental market share of 4.1% in the
Financial Year 2007-08 – from 3.9% in April 07 to 8% in Feb 08. ( Source:
IRDA)
• Also continues to be amongst the fast growing Private Life Insurance
Companies with a YOY growth of 195% in new business premium as of
Mar’08.
• A Company that has crossed 1.7 Million policies in just 2 years of operation,
post take over of AMP Sanmar business.
• Initiated Express Life – an Unique ’Over the Counter’ sales process for Unit
Linked Insurance Policies in the Industry.
• Accomplished a large distribution ramp-up in the Industry in a short span of time
by opening 600 branches in 10 months taking the overall branch network above
740.
• RLIC continues to be one of the two Life Insurance companies in India to be

certified ISO 9001:2000 for all the processes.
• Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007- Certificate of
Merit in the Financial Services category by Council for Fair Business Practices
(CFBP).
PRODUCTS OFFERED BY RELIANCE LIFE
Reliance has number of insurance products in it’s Portfolio. It offers different products
for different customer profile. It target its product according to the needs of people which
make them its customer.
Protection Plans
In today’s uncertain world, there could be calamity at every step of the life. It is up to you
to ensure that your family stays protected always.
Reliance Protection Plans helps you do exactly the same. You have a wide range of
options to choose a plan from. Right from limited period plans to lifetime protection
plans, you can opt for the one that suits your lifestyle.
While we understand that nothing can compensate for the loss of a life, we intend to
provide you the peace of mind. Investing in Reliance Protection Plans would mean your
family’s future is in safe hands.
1.Reliance Term Plan

Invest in the Reliance Term Plan, a pure life insurance plan that offers you
comprehensive and affordable coverage for a limited period of time to suit your needs.
2. Reliance Simple Term Plan

Make a smart investment move by investing in the cost-effective Reliance Simple Term
Plan, which offers you comprehensive coverage for a specified period of time to suit your
need.
3. Reliance Special Term Plan

Imagine a life insurance policy, which on maturity returns to you all the premiums you
had paid for your basic policy. The Reliance Special Term Plan offers that and much
more.
4. Reliance Credit Guardian Plan

The Reliance Credit Guardian Plan secures your family from any loan liabilities you have
incurred in case of your untimely demise. On survival at maturity, you will be returned
all the premiums paid for the basic policy.
5. Reliance Special Credit Guardian Plan

Invest in the Reliance Special Credit Guardian Plan and protect your family from any
loan liabilities you have incurred. On survival at maturity, all premiums paid for the basic
policy will be returned to you.
6. Reliance Endowment Plan

The Reliance Endowment Plan gives you financial independence by allowing you to
decide the amount of Sum Assured based on your current financial position and expected
future expenses… Dream!!
7. Reliance Special Endowment Plan

Imagine an endowment plan that protects you for a certain period even after you have
received your lump sum—that is exactly what the Reliance Special Endowment Plan
offers you with other added benefits.
8. Reliance Connect 2 Life

The Reliance Connect 2 Life Plan gives you the option to upgrade your life cover to keep
pace with your changing lifestyle. As your income grows, your family will have
sufficient cover.
9. Reliance Whole Life Plan

Give your family a lifetime of timely financial support by investing in the Reliance
Whole Life Plan. This will help you enjoy your life to the fullest.
10. Reliance Wealth + Health Plan

Invest in the Reliance Wealth Health Plan and balance your health needs and wealth
needs, without compromising on either health or wealth.
11. Reliance Cash Flow Plan

Invest in the Reliance Cash Flow Plan and reap the dual benefits of a life insurance plan
and easy liquidity through lump sum cash, which means you can get a percentage of the
Sum Assured at periodic intervals.
Savings & Investment Plans

In life, you have always given your family whatever they have wanted. Yet, there are
some promises you have to fulfill, such as taking your family for a vacation, or buying
that dream house.
Set aside some money to achieve these specific goals with the help of Reliance Savings
& Investment Plans. The plan allows you to experience the joys of life and provide for
your family’s needs.
Enjoy life without worrying about the promises you have made—we are here to fulfil
them.
1. Reliance Super Invest Assure Plan

Reliance Super Invest Assure is a complete plan which addresses your vital needs like
Flexibility, Security, Investment Return and Financial Planning. With all its key benefits,
it is here to ensure that there will always be more than you can ask for!
2. Total Investment Plan I - Insurance

Reliance TIPS -Series I- Insurance is a Unit Linked Investment + Insurance Plan that
helps you meet all your financial needs, without the complexity of managing multiple
products.
3. Reliance Wealth + Health Plan

4. Reliance Automatic Investment Plan

The Reliance Automatic Investment Plan is an enhanced unit linked plan that allows you
to choose the right investment mix to reap maximum benefits. It also provides you with
enhanced Life Cover.
5. Reliance Money Guarantee Plan

To reap the benefits of a rising market and to protect yourself from any market decline,
invest in the unit linked Reliance Money Guarantee plan that gives you the perfect
balance between Protection and Savings.
6. Reliance Cash Flow Plan

Invest in the Reliance Cash Flow Plan and reap the dual benefits of a life insurance plan
and easy liquidity through lump sum cash, which means you can get a percentage of the
Sum Assured at periodic intervals.
7. Reliance Market Return Plan

The Reliance Market Return Plan gives you insurance protection and allows you to
benefit from investment growth. It works through your life and meets the changing
requirements you may have from time to time.
8. Reliance Endowment Plan

The Reliance Endowment Plan gives you financial independence by allowing you to
decide the amount of Sum Assured based on your current financial position and expected
future expenses.
9. Reliance Special Endowment Plan

Imagine an endowment plan that protects you for a certain period even after you have
received your lump sum—that is exactly what the Reliance Special Endowment Plan
offers you with other added benefits.
10. Reliance Whole Life Plan

Give your family a lifetime of timely financial support by investing in the Reliance
Whole Life Plan. This will help you enjoy your life to the fullest.
11. Reliance Golden Years Plan

The Reliance Golden Years Plan helps you save systematically and generate the much-
needed corpus to help you enjoy life after retirement.
12. Reliance Golden Years Plan Value

Realize all your dreams of playing golf, or going for a world tour after retirement by
investing in the Reliance Golden Years Plan Value, which helps you generate the amount
you will need for the future.
13. Reliance Golden Years Plan Plus

Invest in the special Reliance Golden Years Plan Plus that not only helps you build the
corpus you need after, but also collects a basic minimum amount in case something were
to happen before you realize your dreams.
14. Reliance Connect 2 Life Plan

The Reliance Connect 2 Life Plan gives you the option to upgrade your life cover to keep
pace with your changing lifestyle. As your income grows, your family will have
sufficient cover.
Retirement Plans
You are a young and earning individual. The income you earn allows you to enjoy life,
your only worry being whether you will be able to continue the same lifestyle after
retirement.
A Reliance Retirement Plan will help you save money for your retirement. It ensures that
you continue to get some income after retirement thereby ensuring that you do not have
to depend on any other person or make any compromises to maintain the same lifestyle.
Invest in a Reliance Retirement Plan today and enjoy life after retirement on your own
terms.
1. Total Investment Plan II - Pension

When you invest in the Reliance Total Investment Plan, you give yourself the assurance
that you will make each one of your dreams come true!
2. Reliance Golden Years Plan

The Reliance Golden Years Plan helps you save systematically and generate the much-
needed corpus to help you enjoy life after retirement.
3. Reliance Money Guarantee Plan

To reap the benefits of a rising market and to protect yourself from any market decline,
invest in the unit linked Reliance Money Guarantee plan that gives you the perfect
balance between Protection and Savings...
Child Plans
Being a parent is one of the joys of life. Your child looks up to you and depends on you
for love, protection and support. You want to provide your child with the best in life.
The Reliance Child Plan helps you save systematically so that you can secure your
child’s future needs. Be it higher education, his or her first home or any other
requirement, you will always be there for your child when he or she needs you.
So, invest in a Reliance Child Plan right away—it is the best gift you could ever give
your child.
1. Reliance Super Invest Assure Plan

Reliance Super Invest Assure is a complete plan which addresses your vital needs like
Flexibility, Security, Investment Return and Financial Planning. With all its key benefits,
it is here to ensure that there will always be more than you can ask for!
2. Reliance Child Plan

Save systematically and secure the financial future of your child by investing in the
Reliance Child Plan and let your child enjoy today without worrying about tomorrow.
3. Reliance Secure Child Plan

Reliance Life Insurance presents a unit linked insurance plan that secures your child’s
financial future, leaving you free from worry.
4.Reliance Wealth + Health Plan

SOME LUCRATIVES PLANS WHICH RELIANCE OFFERS

RELIANCE ENDOWMENT PLAN
It takes a lot for a dream to become a reality. And money is surely an important part of it.
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.
So, go ahead... dream!!.
Key Features
1 .On maturity receive Sum Assured plus bonuses
2. Wealth creation through bonus additions
3. More Value for your money by way of High Sum Assured Rebate
4. Choose to add the Benefit of three Riders-Reliance Term Life Insurance Benefit Rider,
5. Reliance Critical Conditions Rider and Reliance Accidental Death and Total and
6.Permanent Disablement Rider
7. Choose to avail of Policy Loan after three years
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, accumulated bonuses along lump sum payout receive with final
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 & Accidental Death Benefit and Total
and Permanent Diablement Rider.
RELIANCE HEALTH + WEALTH PLAN
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT

PORTFOLIO IS BORNE BY THE POLICYHOLDER.
There are times when late working hours take precedence over your health check-ups.
And there are times when a visit to the doctor seems more important than dividends on
your shares. In the rat race to make money, we often forget to take care of ourselves.
We understand this predicament. Here is a plan that will ensure that your wealth keeps
increasing constantly and yet your health does not take a backseat. The Reliance
Wealth+Health Plan. A plan that gives you the benefits of wealth bhi. health bhi.
Life changes. And as it does, so do your priorities. After all, the circumstances of your
life can determine the type of health coverage you need.
India has made rapid strides in the health sector. Since Independence, life expectancy has
gone up markedly and survival rates have also increased, still critical health issues
remain. Infectious diseases continue to claim a large number of lives.
Perhaps you're a freshly minted graduate, a joyful newlywed, retiring early or between
jobs. Maybe you're running your own business or raising a family — or both. In any of
the situations, GOOD or BAD, health cannot be taken for granted. All are affected by the
rising costs of medical expenses. That’s why it is important to plan early and in advance.
Reliance Wealth + Health Plan, a health insurance plan underwritten by Reliance Life
Insurance Company Limited, is designed to work in conjunction with contributions
towards savings. The uniqueness of this plan is that it not only provides benefits for
covered injuries but also for other injuries by encashment from the unit fund. This plan
from Reliance Life offers the Hospitalization and Surgical Benefits and also covers
Critical Illnesses. In short this plan provides you with a personalised quality health cover
that fits your lifestyle.
Key Feature
A Unit Linked plan with Unique Savings Component
Twin benefit of market linked return and health protection
Choose from two different plan options
Flexibility to take care of your family’s health
Flexibility to switch between funds / plan options
Option to pay Top-ups
Option to package with multiple riders
Liquidity through partial withdrawals
RELIANCE SUPERINVESTASSURE PLAN

PORTFOLIO IS BORNE BY THE POLICYHOLDER.
You have always aspired for the best in life. And we help you achieve that.
Here’s a unique plan which combines protection and savings. It also offers complete
flexibility to gain control over your investments vis-à-vis your financial needs and risk
appetite.
We value your regular investments and thus reward you with guaranteed additions thus
promising unmatched benefits. This plan also offers you a unique option of moving from
a conservative fund to an aggressive fund systematically, to take advantage of the Rupee
cost averaging model.
A plan that promises you, what you ought to deserve as you reach greater heights in life.
What more can you ask for except gifting yourself with Reliance Super Invest Assure
Plan
Key features – Reliance Super Invest Assure Plan
Twin benefit of market linked return and insurance protection.
Guaranteed additions at the rate of 50% of your first year’s basic premium at interval of
every 5 years from 10th year till policy is in force.
Investment opportunity with flexibility -Choose from 8 pure investment fund options.
Option to pay Top-up premium(s).
Liquidity in the form of partial withdrawals.
A host of optional rider benefits to enhance protection cover.
RELAINCE AUTOMATIC INVESTMENT PLAN

PROTFOLIO IS BORNE BY THE POLICYHOLDER
Life is indeed delightful if you have the freedom to make choices. The Reliance
Automatic Investment Plan gives you just that ample freedom! And we make this
freedom more enjoyable by giving you a sense of security. Whether it’s your insurance or
investments, we let you make the choice and leave the rest to us.
So allow us to take over and you can be rest assured, because for us your LIFE comes
FIRST… always.
This plan promise enhanced Life Cover, with complete flexibility to gain control over
your investments in tune with your financial needs and your risk appetite. A plan that
promises you what you deserve as you reach greater heights in life.
For a select few like you, the Reliance Automatic Investment Plan is an enhanced Unit
Linked plan addressing comprehensive needs to strike that perfect balance of protection
and Savings with full flexibility as you grow in your career. The Reliance Automatic
Investment Plan gives you full flexibility to choose just the right investment mix to reap
higher benefits.
Key Features
Two plan option to choose from Ready-made and Tailor-made
Life Stage asset allocation to ensure automatic change in investment patterns, under the
Ready-made Plan option
Freedom to decide your own fund mix based on your risk profile under the Tailor-made
Plan
Allows Systematic Transfer Plan to average out the cost of unit purchased in equality
Regular, limited, single premium paying options
Unmatched flexibility through out ‘Exchange Option ‘
Liquidity in the form of partial withdrawal

Option to avail of Accidental Death and Total & Permanent Disability and Term
Insurance riders
RELAINCE TOTAL INVESTMENT PLAN SERIES -1
The journey of life, even though it may seem simple, comes with its own twists and turns,
some good, some unfortunate. And along with these moments come new dreams. With
every little twist, our dreams change and so do our ambitions. And most of all we desire a
security that will help us follow our dreams, both financial and emotional. It is this
security that Reliance Life Insurance Company Limited promises to bring to you with its
Total Investment Plan Series I Insurance.
To know more, read further…
We value your dreams in this journey of life. Reliance Total Investment Plan Series I
-Insurance (TIPS-I -Insurance) helps you bring them to reality.
Key Features
This is a Single Premium unit linked savings life insurance plan with options to purchase
the same plan with reduced allocation charges in subsequent policy years. Since more
Premium is allocated towards investment due to lower allocation charges on subsequent
purchases, greater would be the returns. Purchasing the same plan in the subsequent years
is an option.
1st purchase would be called as “Classic”
2nd purchase would be called as “Silver”
3rd purchase would be called as “Gold”
4th purchase would be called as “Diamond”
5th purchase would be called as “Platinum”

Once you purchase the first policy there will full flexibility, as to when second and
subsequent purchase can be made and how much Premium should be paid for each
purchase subject to the following:
The minimum Premium on each purchase should be at least Rs. 25000 for life assured
aged up to 40 and Rs. 50000 for life assured aged 41 to 64.
The maturity date on each purchase cannot exceed 70 years.
All the polices should mature on maturity date of the first purchase.
The term of the polices purchased during second, third, fourth and fifth policy years will
be 9, 8, 7 and 6 respectively.
New policy can be purchased only if all the previous polices are in force on the date of
purchase of new policy.
Plan Objective :
The pace setter plan with protection to life which gives
Tax benefit under Sec. 80C and Sec. 10(10D)* of Income Tax Act 1961
Investment opportunity with flexibility
Life protection
Control over your investments
OVERVIEW OF INSURANCE SECTOR
With largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per
cent annually and presently is of the order of Rs 450 billion. Together with banking
services, it adds about 7 per cent to the country’s GDP. Gross premium collection is
nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of
GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover while
health insurance and non-life insurance continues to be below international standards.
And this part of the population is also subject to weak social security and pension
systems with hardly any old age income security. This itself is an indicator that growth
potential for the insurance sector is immense.
A well-developed and evolved insurance sector is needed for economic

development as it provides long-term funds for infrastructure development and at the
same time strengthens the risk taking ability. It is estimated that over the next ten years
India would require investments of the order of one trillion US dollar. The Insurance
sector, to some extent, can enable investments in infrastructure development to sustain
economic growth of the country.
Insurance is a federal subject in India. There are two legislations that govern the
sector- The Insurance Act- 1938 and the IRDA Act- 1999. 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 a period of almost two centuries.
Indian Insurance Industry: 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 make
contributions to a common fund out of which the losses suffered by the unfortunate
few, due to accidental events, are made good
Potential Largely untapped market: 17% of the world’s population
○ Nearly 80% of the Indian population is without Life, Health and Non-life
insurance
○ Life insurance penetration is low at 4.1% in 2006-07
○ Non-life penetration is even lower at 0.6% in 2006-07
○ The per capita spend on life and non-life insurance is US$33.2 and US$5.2
(2006-07), respectively compared to a world average of US$330 and
US$224
○ Strong economic growth with increase in affluence and rising risk
awareness leading to rapid growth in the Insurance sector
○ Innovative products such as Unit Linked Insurance Policies are likely to
drive future industry growth
○ Investment opportunities exist in both Life and Non-life segments
○ Total estimated investment opportunity of US$14-15 billion
STRUCTURE
Indian Insurance market was opened to private & foreign investment in 1999-2000
➢ The Indian Insurance industry consists of a total of 31 players

➢ Life: 1 Public sector player; 15 private players
➢ Non-Life: 6 public sector players; 9 private players
➢ Major international players like AIG, Aviva, MetLife, New York Life,
Prudential, Allianz, Sun Life, Standard Life and Lombard are already present with
minority stakes in joint ventures with Indian companies for both Life and Non-life
segments
➢ Life Insurance market is still dominated by Life Insurance Corporation (LIC) - a
public sector company which has 75% share of first year premium in 2006-07
➢ In Non-life, private sector companies (almost all are joint ventures with foreign
insurers) accounted for 34% of the market in 2006 to 07.
POLICY
FDI up to 26% is permitted under the automatic route subject to obtaining a license
from the Insurance Regulatory and Development Authority (IRDA)
Plans to increase FDI up to 49%
Insurance Regulatory Development Authority (IRDA) is the regulator for the Insurance
industry
In a landmark move the government detariffed the General Insurance business on 1st
January 2007
What is Life Insurance?
Life insurance is a guarantee that your family will receive financial support, even
in your absence. Put simply, life insurance provides your family with a sum of money
should something happen to you. It thus permanently protects your family from financial
crises.
In addition to serving as a protective cover, life insurance acts as a flexible

money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get
your children married and even retire comfortably.
Life insurance is a contract that pledges payment of an amount to the person

assured (or his nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during:
• The date of maturity, or
• Specified dates at periodic intervals, or
• Unfortunate death, if it occurs earlier
The functions of Insurance can be bifurcated into two parts:

1. Primary Functions
2. Secondary Functions
3. Other Functions
The primary functions of insurance include the following:
Provide Protection - The primary function of insurance is to provide protection against

future risk, accidents and uncertainty. Insurance cannot check the happening of the risk,
but can certainly provide for the losses of risk. Insurance is actually a protection against
economic loss, by sharing the risk with others.
Collective bearing of risk - Insurance is a device to share the financial loss of few
among many others. Insurance is a mean by which few losses are shared among larger
number of people. All the insured contribute the premiums towards a fund and out of
which the persons exposed to a particular risk is paid.
Assessment of risk - Insurance determines the probable volume of risk by evaluating

various factors that give rise to risk. Risk is the basis for determining the premium rate
also
Provide Certainty - Insurance is a device, which helps to change from uncertainty to

certainty. Insurance is device whereby the uncertain risks may be made more certain.
The secondary functions of insurance include the following:
Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable

device to prevent unfortunate consequences of risk by observing safety instructions;
installation of automatic sparkler or alarm systems, etc. Prevention of losses cause lesser
payment to the assured by the insurer and this will encourage for more savings by way of
premium. Reduced rate of premiums stimulate for more business and better protection to
the insured.
Small capital to cover larger risks - Insurance relieves the businessmen from security
investments, by paying small amount of premium against larger risks and uncertainty.
Contributes towards the development of larger industries - Insurance provides

development opportunity to those larger industries having more risks in their setting up.
Even the financial institutions may be prepared to give credit to sick industrial units
which have insured their assets including plant and machinery.
The other functions of insurance include the following:
Means of savings and investment - Insurance serves as savings and investment,

insurance is a compulsory way of savings and it restricts the unnecessary expenses by the
insured's For the purpose of availing income-tax exemptions also, people invest in
insurance.
Source of earning foreign exchange - Insurance is an international business. The

country can earn foreign exchange by way of issue of marine insurance policies and
various other ways.
Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade
risk free with the help of different types of policies under marine insurance cover.
Need for Life Insurance

Today, there is no shortage of investment options for a person to choose from.
Modern day investments include gold, property, fixed income instruments, mutual funds
and of course, life insurance. Given the plethora of choices, it becomes imperative to
make the right choice when investing your hard-earned money. Life insurance is a unique
investment that helps you to meet your dual needs - saving for life's important goals, and
protecting your assets.
Let us look at these unique benefits of life insurance in detail.
Asset Protection
From an investor's point of view, an investment can play two roles - asset
appreciation or asset protection. While most financial instruments have the underlying
benefit of asset appreciation, life insurance is unique in that it gives the customer the
reassurance of asset protection, along with a strong element of asset appreciation.
Goal based savings
Each of us has some goals in life for which we need to save. For a young, newly
married couple, it could be buying a house. Once, they decide to start a family, the goal
changes to planning for the education or marriage of their children. As one grows older,
planning for one's retirement will begin to take precedence.
Clearly, as your life stage and therefore your financial goals change, the
instrument in which you invest should offer corresponding benefits pertinent to the new
life stage.
Life insurance is the only investment option that offers specific products tailor-made for
different life stages. It thus ensures that the benefits offered to the customer reflect the
needs of the customer at that particular life stage, and hence ensures that the financial
goals of that life stage are met.
The table below gives a general guide to the plans that are appropriate for different life
stages.
Life Insurance
Life Stage Primary Need Product
Young &
Asset creation Wealth creation plans
Single
Young & Wealth creation and

Asset creation &
mortgage protection
Just married protection
plans
Children's
Married education, Education insurance,
mortgage protection &
With kids Asset creation wealth creation plans
and protection
Middle aged Planning for

Retirement solutions &
with grown up retirement &
mortgage protection
kids asset protection
Across all lif- Health plans Health Insurance

stages
Insurance Life V/S Other Savings

Contract of Insurance:
A contract of insurance is a contract of utmost good faith technically known as
uberrima fides. The doctrine of disclosing all material facts is embodied in this important
principle, which applies to all forms of insurance.
At the time of taking a policy, policyholder should ensure that all questions in the
proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in
any document leading to the acceptance of the risk would render the insurance contract
null and void.
Protection:
Savings through life insurance guarantee full protection against risk of death of
the saver. Also, in case of demise, life insurance assures payment of the entire amount
assured (with bonuses wherever applicable) whereas in other savings schemes, only the
amount saved (with interest) is payable.
Aid to Thrift:
Life insurance encourages 'thrift'. It allows long-term savings since payments can
be made effortlessly because of the 'easy installment' facility built into the scheme.
(Premium payment for insurance is monthly, quarterly, half yearly or yearly).
For example: The Salary Saving Scheme popularly known as SSS, provides a convenient
method of paying premium each month by deduction from one's salary.
In this case the employer directly pays the deducted premium to LIC. The Salary Saving
Scheme is ideal for any institution or establishment subject to specified terms and
conditions.
Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy
that has acquired loan value. Besides, a life insurance policy is also generally accepted as
security, even for a commercial loan.
Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax and wealth
tax. This is available for amounts paid by way of premium for life insurance subject to
income tax rates in force.
Assesses can also avail of provisions in the law for tax relief. In such cases the assured in
effect pays a lower premium for insurance than otherwise.
Money When You Need It:
A policy that has a suitable insurance plan or a combination of different plans can
be effectively used to meet certain monetary needs that may arise from time-to-time.
Children's education, start-in-life or marriage provision or even periodical needs for cash
over a stretch of time can be less stressful with the help of these policies.
Alternatively, policy money can be made available at the time of one's retirement from
service and used for any specific purpose, such as, purchase of a house or for other
investments. Also, loans are granted to policyholders for house building or for purchase
of flats (subject to certain conditions).
Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter into a valid contract
can insure himself/herself and those in whom he/she has insurable interest.
Policies can also be taken, subject to certain conditions, on the life of one's spouse
or children. While underwriting proposals, certain factors such as the policyholder’s state
of health, the proponent's income and other relevant factors are considered by the
Corporation.
Insurance For Women

Prior to nationalization (1956), many private insurance companies would offer
insurance to female lives with some extra premium or on restrictive conditions. However,
after nationalization of life insurance, the terms under which life insurance is granted to
female lives have been reviewed from time-to-time.
At present, women who work and earn an income are treated at par with men. In
other cases, a restrictive clause is imposed, only if the age of the female is up to 30 years
and if she does not have an income attracting Income Tax.
Medical And Non-Medical Schemes

Life insurance is normally offered after a medical examination of the life to be
assured. However, to facilitate greater spread of insurance and also to avoid
inconvenience, LIC has been extending insurance cover without any medical
examination, subject to certain conditions.
With Profit And Without Profit Plans

An insurance policy can be 'with' or 'without' profit. In the former, bonuses
disclosed, if any, after periodical valuations are allotted to the policy and are payable
along with the contracted amount.
In 'without' profit plan the contracted amount is paid without any addition. The
premium rate charged for a 'with' profit policy is therefore higher than for a 'without'
profit policy.
Key man Insurance

Key man insurance is taken by a business firm on the life of key employee(s) to
protect the firm against financial losses, which may occur due to the premature demise of
the Key man
PRINCIPLES OF INSURANCE
Insurance is a specialized type of contract. Apart from the usual essentials of a valid
contract, insurance contracts are subject to some additional principles. These principles
provide the framework within which the product and all the contracts of insurance
operate.
➢ Principle of cooperation: A device to share risk & uncertainties collectively, one

for all and all for one’’
➢ Principle of probability: Important determinant of insurance premium, Rate of
premium depends on quantum of risk & probability of risk
➢ Principle of Insurable Interest: Interest of such a nature that the possessor
would be financially injured by the occurrence of the event insured against, `` LA
to be more valuable alive then dead
➢ Principle of utmost good faith: The parties to the contract (insurer and insured)
are legally bound to reveal each other all information about the subject matter,
which would influence each other’s decision.
➢ Principal of warranties: A warranty is an undertaking by assured that some
conditions shall be fulfilled, or a certain thing shall be or shall not be done. A
warranty may be Express or Implied
➢ Principle of Casual Proximal: In order to make the Insurer liable for loss, such
loss must have been proximately caused by the Peril insured against. E.g. ADBR.
These 6 principles are applicable to all the products, both life and Non-Life.
These principles provide the framework within which the products and all the
contracts of Life Insurance operate.
HISTORY OF INDIAN INSURANCE INDUSTRY

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 a period of almost 190 years.
The business of life insurance in India in its existing form started in India in
the year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.
Some of the important milestones in the life insurance business in India are
1912 - The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928 - The Indian Insurance Companies Act enacted to enable the government
to collect statistical information about both life and non-life insurance businesses.
1938 - Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public.
1956 - 245 Indian and foreign insurers and provident societies taken over by
the central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.
The General insurance business in India, on the other hand, can trace its roots
to the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact
all classes of general insurance business.
1957 - General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.
1968 - The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized

the general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance
Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a
company.
Before insurance sector was opened to the private sector Life Insurance
Corporation (LIC) was the only insurance company in India. After the opening up of
Insurance sector in India there has been a glut of insurance companies in India. These
companies have come up with innovative and flexible insurance policies to cater to
varying needs of the individual. Opening up of the Insurance sector has also forced the
LIC to tighten up its belt and deliver better service. All in all it has been a bonanza for the
consumer.
The life insurance business in India started since 1818. Till 1956, the insurance
business was mixed and decentralized. In 1956, the life insurance business of all
companies was nationalized and a single monolithic organization, the Life
Insurance Corporation of India (LIC), was set up. The Insurance Regulatory and
Development Authority (IRDA) Bill was passed by Indian parliament in December

1999. The IRDA become a statutory body in April 2000 and has been framing
regulations and restrictions the private sector insurance companies.
The insurance sector was opened up to the private sector in August 2000.
Consequently, some Indian and foreign private companies have entered the insurance
business. There are about 16 life insurance companies operating in the private sector 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 a
period of almost two centuries.
ABOUT THE INDUSTRY:
With an annual growth rate of 15-20% and the largest number of life insurance
policies in force, the potential of the Indian insurance industry is huge. Total value of the
Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion).
According to government sources, the insurance and banking services' contribution to the
country's gross domestic product (GDP) is 7% out of which the gross premium collection
forms a significant part. The funds available with the state-owned Life Insurance
Corporation (LIC) for investments are 8% of GDP.
Till date, only 20% of the total insurable population of India is covered under
various life insurance schemes, the penetration rates of health and other non-life
insurances in India is also well below the international level. These facts indicate the of
immense growth potential of the insurance sector.
The year 1999 saw a revolution in the Indian insurance sector, as major structural
changes took place with the ending of government monopoly and the passage of the
Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry
restrictions for private players and allowing foreign players to enter the market with some
limits on direct foreign ownership.
Though, the existing rule says that a foreign partner can hold 26% equity in an
insurance company, a proposal to increase this limit to 49% is pending with the
government. Since opening up of the insurance sector in 1999, foreign investments of Rs.
8.7 billion have poured into the Indian market and 21 private companies have been
granted licenses.
Innovative products, smart marketing, and aggressive distribution have enabled fledgling
private insurance companies to sign up Indian customers faster than anyone expected.
Indians, who had always seen life insurance as a tax saving device, are now suddenly
turning to the private sector and snapping up the new innovative products on offer.
The life insurance industry in India grew by an impressive 36%, with premium income
from new business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff
competition from private insurers. This report "Indian Insurance Industry: New Avenues
for Growth 2012", finds that the market share of the state behemoth, LIC, has clocked
21.87% growth in business at Rs.197.86 billion by selling 2.4 billion new policies in
2004-05. But this was still not enough to arrest the fall in its market share, as private
players grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in
2003-04
Though the total volume of LIC's business increased in the last fiscal year (2004-
2005) compared to the previous one, its market share came down from 87.04 to 78.07%.
The 14 private insurers increased their market share from about 13% to about 22% in a
year's time. The figures for the first two months of the fiscal year 2005-06 also speak of
the growing share of the private insurers. The share of LIC for this period has further
come down to 75 percent, while the private players have grabbed over 24 percent.
There are presently 12 general insurance companies with four public sector
companies and eight private insurers. According to estimates, private insurance
companies collectively have a 10% share of the non-life insurance market.
Indian Insurance Industry Forecast (2007-2009)
The market research report “Indian Insurance Industry Forecast (2007-2009)”

gives an in-depth analysis of the present and future of the Indian Insurance Industry. The
market research report looks in to the details as well as gives an overview of the Indian
insurance market with focus on the performance of the key players.
With the initiation of the deregulation in the Indian insurance market, the
monopoly of big public sector companies in life insurance as well as general (non-life
insurance) market has been broken. New private players have entered the market and
with their innovative approaches and better use of distribution channels and technology,
they are eating in to the shares of established public sector companies in Indian Insurance
Market.
Since the deregulations have been put in to place, the market share of LIC has
come down to 71.4% in life insurance market while the private players have captured
around 17% market in the general insurance segment. It is said that, public sector
insurance companies such as LIC and New India Assurance are registered impressive
double-digit growths, which reflects on the overall health of the Indian insurance sector.
Indian Insurance Sector

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance
Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972,
Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related
Acts.
Life Insurance Corporation of India (LIC):

Life Insurance Corporation of India (LIC) was formed in September, 1956 by an Act of
Parliament, viz., Life Insurance Corporation Act, 1956, with capital contribution from the
Government of India. Then the Finance Minister, Shri C.D. Deshmukh, while piloting the
bill, outlined the objectives of LIC thus: to conduct the business with the utmost
economy, in a spirit of trusteeship; to charge premium no higher than warranted by strict
actuarial considerations; to invest the funds for obtaining maximum yield for the policy
holders consistent with safety of the capital; to render prompt and efficient service to
policy holders, thereby making insurance widely popular.
Since nationalization, LIC has built up a vast network of 2,048 branches, 100 divisions
and 7 zonal offices spread over the country. The Life Insurance Corporation of India also
transacts business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC is
associated with joint ventures abroad in the field of insurance, namely, Ken-India
Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited,
Kuala Lumpur and Life Insurance Corporation (International) E.C. Bahrain. The
Corporation has registered a joint venture company in 26th December, 2000 in
Kathmandu, Nepal by the name of Life Insurance Corporation (Nepal) Limited in
collaboration with Vishal Group Limited, a local industrial Group. An off-shore company
L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001 to tap the African
insurance market.
General Insurance:
General insurance business in the country was nationalized with effect from 1st January
1973 by the General Insurance Business (Nationalization) Act, 1972. More than 100 non-
life insurance companies including branches of foreign companies operating within the
country were amalgamated and grouped into four companies, viz., the National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company
Ltd., and the United India Insurance Company Ltd. with head offices at Calcutta,
Bombay, New Delhi and Madras, respectively. General Insurance Corporation (GIC)
which was the holding company of the four public sector general insurance companies
has since been de-linked from the later and has been approved as the "Indian Reinsure"
since 3rd November 2000. The share capital of GIC and that of the four companies are
held by the Government of India. All the five entities are Government companies
registered under the Companies Act.
The general insurance business has grown in spread and volume after nationalization.
The four companies have 2699 branch offices, 1360 divisional offices and 92 regional
offices spread all over the country. GIC and its subsidiaries have representation either
directly through branches or agencies in 16 countries and through associate/ locally
incorporated subsidiary companies in 14 other countries. A wholly- owned subsidiary
company of GIC, i.e. Indian International Pte. Ltd. is operating in Singapore and there is
a joint venture company, viz. KenIndia Assurance Ltd. in Kenya. A new wholly owned
subsidiary called New India International Ltd., UK has also been registered.
Insurance sector reforms
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI

Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and
recommend its future direction. The Malhotra committee was set up with the objective of
complementing the reforms initiated in the financial sector. The reforms were aimed at
“creating a more efficient and competitive financial system suitable for the requirements
of the economy keeping in mind the structural changes currently underway and
recognising that insurance is an important part of the overall financial system where it
was necessary to address the need for similar reforms…”.In 1994, the committee
submitted the report and some of the key recommendations included:
i) Structure:
Government stake in the insurance Companies to be brought down to 50%

Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations. All the insurance companies should be
given greater freedom to operate
ii) Competition:
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to

enter the industry
No Company should deal in both Life and General Insurance through a single Entity.
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies. Postal Life Insurance should be allowed to operate in the rural
market. Only one State Level Life Insurance Company should be allowed to operate in
each state.
iii) Regulatory Body:
The Insurance Act should be changed. An Insurance Regulatory body should be

set up. Controller of Insurance (Currently a part from the Finance Ministry) should be
made independent.
iv) Investments:
Mandatory Investments of LIC Life Fund in government securities to be reduced

from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company
(There current holdings to be brought down to this level over a period of time)
v) Customer Service
LIC should pay interest on delays in payments beyond 30 days. Insurance

companies must be encouraged to set up unit linked pension plans. Computerization of
operations and updating of technology to be carried out in the insurance industry. The
committee emphasized that in order to improve the customer services and increase the
coverage of the insurance industry should be opened up to competition. But at the same
time, the committee felt the need to exercise caution as any failure on the part of new
players could ruin the public confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating the

minimum capital requirement of Rs.100 crore. The committee felt the need to provide
greater autonomy to insurance companies in order to improve their performance and
enable them to act as independent companies with economic motives. For this purpose, it
had proposed setting up an independent regulatory body.
The Insurance Regulatory and Development Authority
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill
in Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies were the launch of the
IRDA’s online service for issue and renewal of licenses to agents. The approval of
institutions for imparting training to agents has also ensured that the insurance companies
would have a trained workforce of insurance agents in place to sell their products, which
are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life insurance and
6 general insurance companies have been registered.
Duties, Powers and Functions of IRDA

Section 14 IRDA Act, 1999 lays down the duties, powers and functions of IRDA
1. The Authority has the duty to regulate, promote and ensure orderly growth of the
Insurance business and reinsurance business.
2. This Include -
a) Issue to the applicant a certificate of registration, renew, modify,
Withdraw, suspend or cancel such registration
b) Protection of interests of the policy holders in matter concerning assigning Of
policy, nomination by policyholders, insurable interest, settlement of insurance
claim, surrender value of policy and condition of contracts of insurance.
c) Specifying the code of conduct and practical training
For intermediary or insurance intermediaries and agents
d) Specifying the code of conduct for surveyors and loss assessors
e) Promoting efficiency in the conduct of insurance business
f) Promoting and regulating professional organization connected with insurance and

reinsurance business.
g) Levying fees and other charges for carrying out the purposes of this act.
h) Calling from information from, undertaking inspection of, conducting enquiries
and investigation including audit of the insurers, intermediaries and other
organization connected with the insurance business
i) Control and regulation of the rates, advantages, terms and condition
j) Specifying the form and manner in which books of accounts shall be maintained
and statement of account shall be rendered by insurers and other intermediaries.
k) Regulating investment of funds by insurance companies.
l) Regulating maintenance of margin of solvency.
m) Adjudication of disputes between Insurers and intermediaries or insurance
intermediaries.
n) Supervising the functioning of the Tariff Advisory Committee.
o) Specifying the % of Premium, Income of the insurer to finance schemes for
promoting and regulating professional organizations
Specifying the % of Life Insurance Business and general Insurance Business to be
undertaken by the Insurer in the rural or social sector
Insurers
Insurance industry, as on 1.4.2000, comprised mainly two players: the state
insurers
Life Insurers
• Life Insurance Corporation of India (LIC)
General Insurers
• General Insurance Corporation of India (GIC) (with effect from Dec'2000, a

National Reinsure)
GIC had four subsidiary companies, namely:
1. The Oriental Insurance Company Limited
2. The New India Assurance Company Limited,
3. National Insurance Company Limited
4. United India Insurance Company Limited.
With effect from Dec'2000, these subsidiaries have been de-linked from the parent
company and made as independent insurance companies.
Yr:2000-2001: (From 2nd April '2000 to 31st December'2001)

In the year 2000-2001, Insurance industry had 16 new entrants(private), namely:
Life Insurance: Major Players

Name of Company
Public Sector
LIFE INSURANCE CORPORATION
Private Sector
ICICI Prudential
Bajaj Allianz
Birla Sun Life
HDFC Standard Life

Tata AIG
Private Sector
ICICI Lombard
Bajaj Allianz
IFFCO Tokio
Tata AIG
IMPACT OF FOREIGN INSURERS ENTERING INDIA:
''LIBERALIZATION''
For a long period after Independence, Indian business was characterized by
government regulations-- the ‘license raj’. The government not only exercised control
over industrial growth and expansion, but also ran monopoly undertakings and took over
loss-making industries on the grounds of mismanagement. Then, in 1985, the late Mr
Rajiv Gandhi initiated the first set of economic reforms. After so many years of
developmental effort they had not been able to eradicate poverty, remove inequalities or
establish an egalitarian society. The resultant disillusionment came out in the open when
the socialist economies collapsed. As the Indian economy got further integrated with the
world’s, the necessity for globalization increased. This introduced a new buzzword--
Liberalization.
The term is used for a more ‘outward-oriented’ policy, which includes the
elimination of anti-export biases, lowering high import tariffs, reducing and phasing out
Quantitative Restrictions (QRs) on inputs and switching to tariff-related measures.
However, the government would not completely abandon all forms of control and place
the entire economy at the mercy of MNCs. Liberalization and globalization would mainly
remove certain imbalances and restrictions that hamper the free flow of trade. The goals
of liberalization were to motivate Indian manufacturers to prefer updated technology and
to deliver the better products at lower costs. This would increase competition and provide
incentives to deliver world-class goods and services at affordable prices, which leads to
quality assurance.
THEORETICAL PERSPECTIVE
Stress
A physical, chemical or emotional factor that causes bodily or mental tension and may be
a factor in disease causation
Stress and stress management is a very personal, or subjective thing. It is based your
personality, experience, and what has worked in the past
Much stress comes from a feeling of powerlessness over a situation, or through conflict
with others.
Stress is a psychological and physiological response to events that upset our personal
balance in some way. These events or demands are known as stressors.
Work stress
Work-related stress is the response people may have when presented with work demands
and pressures that are not matched to their knowledge and abilities and which challenge
their ability to cope. Stress occurs in a wide range of work circumstances but is often
made worse when employees feel they have little support from supervisors and
colleagues and where they have little control over work or how they can cope with its
demands and pressures.
There is often confusion between pressure or challenge and stress and sometimes it is
used to excuse bad management practice. Pressure at the workplace is unavoidable due to
the demands of the contemporary work environment. Pressure perceived as acceptable by
an individual, may even keep workers alert, motivated, able to work
and learn, depending on the available resources and personal characteristics. However,
when that pressure becomes excessive or otherwise unmanageable it leads to stress.
Stress can damage your workers’ health and your business performance.
Stress results from a mismatch between the demands and pressures on the person, on the
one hand, and their knowledge and abilities, on the other. It challenges their ability to
cope with work. This includes not only situations where the pressures of work exceed the
worker’s ability to cope but also where the worker’s knowledge and abilities are not
sufficiently utilized and that is a problem for them. A healthy job is likely to be one
where the pressures on employees are appropriate in relation to their abilities and
resources, to the amount of control they have over their work, and to the support they
receive from people who matter to them. As health is not merely the absence of disease
or infirmity but a positive state of complete physical, mental and social well-being
(WHO, 1986), a healthy working environment is one in which there is not only an
absence of harmful conditions but an abundance of health promoting ones. These may
include continuous assessment of risks to health, the provision of appropriate information
and training on health issues and the availability of health promoting organizational
support practices and structures. A healthy work environment is one in which staff have
made health and health promotion a priority and part of their working lives.
Research findings from WHO (World Health Organization)

• 40% of workers reported their job was very or extremely stressful.
• 25% view their jobs as the number one stressor in their lives.
• Job stress is more strongly associated with health complaints than financial or
family problems.
• 25% have felt like screaming or shouting because of job stress, 10% are
concerned about an individual at work they fear could become violent.
• 9% are aware of an assault or violent act in their workplace and 18% had
experienced some sort of threat or verbal intimidation
• 19% had quit a previous position because of job stress
• 26% have been driven to tears because of workplace stress.
• 62% routinely find that they end the day with work-related neck pain.
• 44% reported stressed-out eyes.
• 38% complained of hurting hands
• 34% reported difficulty in sleeping because they were too stressed-out.
• 12% had called in sick because of job stress.
Workplace stress has a negative impact on the business as well as on the
individual employee. The increase in job stress creates emotional, financial, and
safety concerns for employers and managers
The World Health Organization labeled stress a “worldwide epidemic.” Today,
workplace stress is estimated to cost companies more than $300 billion a year in
poor performance, absenteeism and health costs.
What Is Stress?
Stress is the emotional and physical strain caused by our response to pressure from the
outside world. Common stress reactions include tension, irritability, inability to
concentrate, and a variety of physical symptoms that include headache and a fast
heartbeat.
It's almost impossible to live without some stress. And most of us wouldn't want to,
because it gives life some spice and excitement. But if stress gets out of control, it may
harm your health, your relationships, and your enjoyment of life.
Examples of "overload" situations are common in today's world:
• You and your spouse both work full time while you are raising your family. At
the same time, your parents are retired, in ill health, and are dependent on your
help with shopping and running errands.
• You are a single person living alone, and your salary isn't rising as fast as the rate
of inflation. It's getting harder each month to pay the bills.
• You are a divorced parent and share the custody of your children with your
former spouse. But the friction between the two of you on matters concerning the
children is becoming more bitter and more frequent.
• The expectations and competition at your workplace is becoming fierce. You find
yourself coming in early, staying late, and taking on more work than you can
handle.
Managing stress involves learning about:
• How stress affects the mind and body
• How to identify the warning signs of stress
• How to develop good stress-management techniques
• When to seek professional help
What Are The Signs Of Stress?

Stress can cause both mental and physical symptoms. The effects of stress are different
for different people.
The mental symptoms of stress include:

• Tension
• Irritability
• Inability to concentrate
• Feeling excessively tired
• Trouble sleeping
The physical symptoms of stress include:
• Dry mouth
• A pounding heart
• Difficulty breathing
• Stomach upset
• Frequent urination
• Sweating palms
• Tight muscles that may cause pain and trembling
Facts about stress

• According to the American Academy of Family Physicians, two-thirds of office
visits to family doctors are for stress-related symptoms.
• Almost everyone experiences events that they find difficult to cope with. In a
recent poll, 89 percent of people said they had experienced serious stress in their
lives.
• According to one study, middle-aged men under severe stress who lacked
emotional support were five times more likely to die within seven years than
those who had the same amount of stress but had close personal ties.
• A recent study indicated that stress-management programs may reduce the risk of
heart problems, including heart attack, by up to 75 percent in people with heart
disease.
Stress-related mental disorders have been called the fastest-growing occupational (work-
related) disease in the U.S.A.
What Causes Stress?

We may think of stressful events as unpleasant ones, such as losing a job or having
difficulties at home or at school. But changes for the better can also cause stress, like a
new baby, a wedding, and a new house.
In an ideal world, maybe we could get away from stressful situations, or change them.
Too often we can't do that - but we can learn to control our response to those situations.
And we can develop techniques that will reduce the effects of stress on our mental and
physical health.
Here are some different life events that are identified as stressful. They are rated on the
"Holmes-Raye" scale, which scores them according to the stress they cause (the higher
the number, the greater the stress).
What's Stressful For You?

What's stressful for you may be quite different from what's stressful to your best friend,
your spouse, or the person next door. For example:
• Some people enjoy speaking in public; others are terrified.
• Some people are more productive under deadline pressure; others are miserably
tense.
• Some people are eager to help family and friends through difficult times; others
find it very stressful.
• Some people feel comfortable complaining about bad service in a restaurant;
others find it so difficult to complain that they prefer to suffer in silence.
• Some people may feel that changes at work represent a welcome opportunity;
others worry about whether they'll be able to cope.
Personality type plays a role in reaction to stress. For example, people who drive
themselves hard and are impatient (sometimes called Type A personalities) may be more
at risk for stress-related physical problems. Certain occupations, such as law enforcement
or air traffic control, are clearly more stressful than others. In addition, people with a
personal or family history of mental illness may be affected more by stress.
Putting It All Together
Here is a summary of the important facts and information related to stress:
• Stress is the emotional and physical strain caused by our response to pressure
from the outside world.
• The mental symptoms of stress include tension, irritability, inability to
concentrate, feeling excessively tired, and having trouble sleeping.
• The physical symptoms of stress include dry mouth, a pounding heart, difficulty
breathing, stomach upset, frequent urination, sweating palms, and tense muscles
that may cause pain and trembling.
• The four types of stress signs include changes in body functions and physical
health, changes in emotions and feelings, changes in behavior, and changes in
thoughts.
• Stress has been linked to serious diseases such as heart disease and cancer, and to
a variety of other physical and emotional disorders.
• One method of stress management is called the TARP method, which involves
noticing early signs of stress, figuring out the causes, dealing with the effects on
the body, and developing good stress-reduction techniques.
• Other methods of managing stress include humor, meditation, hobbies,
biofeedback, and massage therapy.
• Medication can be useful for dealing with short periods of acute stress, but it does
not address the underlying problem.
• Some people find it helpful to see an expert in stress management, who can assess
which techniques best suit their skills, temperament, and needs. Professional who
help individuals cope with stress include psychologists, psychotherapists, nurses,
physicians, exercise instructors, and dietitians
Here are definitions of medical terms related to stress:

Adrenaline: Epinephrine, the hormone that serves as a stimulant in the body, increasing
blood pressure and heart rate, among other roles.
Hormones: A chemical substance produced by a gland and released into the
bloodstream. Hormones can stimulate or inhibit various vital processes in the body.
Massage: The gentle practice of manipulating the body's tissues in order to soothe and
heal.
Phobia: An abnormal fear of an object, experience, or place.
Yoga: A discipline that focuses on the body's muscles, posture, breathing mechanisms,
and consciousness, in order to attain physical and mental well-being through mastery of
the body.
How Stress Can Hurt

It has been estimated that two-thirds of all visits to physicians are for stress-related
problems. Recent evidence indicates that the physical changes associated with stress may
contribute to the leading causes of death - heart disease and cancer.
The effects of stress include the following:
• Stress can cause chronic fatigue, digestive upsets, headaches, and back pain.
• Stress can affect the blood cells that help you fight off infection, so you are more
likely to get colds and other diseases.
• Constant stress can increase blood pressure and can increase the risk for stroke.
• Stress can increase the danger of heart attacks, particularly if you are often angry
and mistrustful.
• Stress can make an asthma attack worse.
• Stress triggers behaviors that contribute to death and disability, such as smoking,
alcoholism, drug abuse, and overeating.
• Stress can lead to diminished sexual desire and an inability to achieve orgasm.
• Stress makes it harder to take other steps to improve health, such as giving up
smoking or making changes in diet
Dealing with Stress

One method of stress management is called the TARP method, and it has been proven
effective for many. A tarp is a protective cover thrown over something - a car or boat, for
example - to protect it from the elements. Likewise, the TARP method offers a form of
protection, too - protection against the distressing and sometimes harmful effects of
stress.
The TARP method teaches simple techniques that can be used any time, anywhere, to
control your response to stressful situations. It consists of four steps:
• T is for "Tune in" - Get into the habit of noticing early signs of stress.
• A is for "Analyze" - Think about the source or causes of your stress.
• R is for "Respond" - Deal with the cause of your stress, and its effects on you.
• P is for "Prevent" - Develop good stress-reduction habits for a healthier
lifestyle.
In addition to the TARP method, other activities and methods also can help manage
stress.
"Tune in"
Tuning in is important, because if you don't tackle your stress early, it can interfere with
your sense of well being and your health almost before you know it. And the effects of
stress often get worse as time goes on.
"Analyze"
Once you know how to "tune in" to your signs of stress, you will be better able to analyze
the situations that are stressful to you. These "stressors," as they are called, could be
either external or internal.
External stressors are things and events outside your body that can make you feel
threatened or out of control. For example:
• Physical irritants like noise, pollution, heat, or humidity
• Work demands or conditions and Social or family demands, changes, or problems
• Frightening events, like narrowly escaping a traffic accident
Internal stressors result from one's own attitudes and thinking patterns. For example:
• Do you always talk to yourself with words like "should, must, and ought?"
• Do you feel like a failure if you are late, or if things don't go as planned?
• Do you have "me last" syndrome, feeling you have to look after everyone else's
needs before you think of your own?
• Do you feel worthless unless everyone likes you all the time?
• Are you guilty of "awful-izing," which means always expecting the worst? For
example, if family members are late, do you often imagine they are injured or
dead?
"Respond"
"Responding" in the days of early man meant fighting the source of stress or running
away from it. Your body will still produce a physical "alarm response" that pumps stress
hormones through your body, tensing your muscles and speeding up your heart. This
"alarm response" in most cases doesn't do us any good - and it can be harmful.
You can learn to turn off the alarm response and regain control. You can learn to respond
calmly, and deal actively and positively with your stress, whether it is caused by outside
or internal factors.
Four useful techniques for responding calmly are:
1. Time out. A brief time out is the simplest possible approach to stress:
• Stop the activity (or the conversation) that was causing you stress.
• If you can move away, go to another room, or go for a short walk.
• If you can't move away, count to 10 silently before you speak again.
2. Breathing. You can often tell if people are under stress because of the way they are
breathing. For example, customs officers have noticed that smugglers are the people
taking fast, shallow breaths. If you learn to control your breathing, it will help you regain
control over the effects of stress.
• Watch babies breathing; their abdomens expand when they breathe in.
• Watch a tense adult breathing; there may be no movement of the abdomen. All
the work is being done by the chest.
Abdominal breathing can be very soothing, because it slows you down. It is also
efficient, bringing a good supply of oxygen to your brain. Prepare for stressful times by
practicing your breathing now:
• Check your breathing pattern by putting one hand on your chest and one hand on
your stomach. If your lower hand moves and your top hand does not, you are
doing abdominal breathing. But if your top hand moves and your bottom one does
not, you are doing chest breathing.
• To do abdominal breathing, get your stomach relax. Breathe in deeply, then
breathe all the air out. Let your lungs fill
• Practice this "belly breathing" whenever you have spare time (for example, while
you are driving).
• Whenever you are stressed, worried, or tense, use your breathing to help calm
yourself down. Take a deep breath and quietly let it go out completely, then let
your abdomen expand as the air comes back into your lungs. Keep noticing your
abdominal breathing for another few breaths.
For a variation on this breathing technique, try "10-to-one countdown" breathing:
• Start with abdominal breathing, letting all the breath out and then allowing your
abdomen to expand as your lungs fill up again.
• When you breathe out again, say "10," letting go of tension as if it is being carried
out of your body with the air.
• Next time you breathe out, say "nine," and so on, all the way down to "one."
• When you get to "one," start again.
• Each time you breathe out, tell yourself you are letting go of tension.
• Many people repeat this sequence slowly for a period of 15 to 20 minutes. They
find that with each new countdown, they reach a deeper level of relaxation.
When we are under stress, we often feel things are happening too fast. Another technique,
called slow-down breathing, can help you get settled down and in control. It starts with
abdominal breathing, and uses cue words to help you focus and clear your mind.
Examples of cue words are:
• As you breathe in, silently say "calm"
• As you breathe out, silently say "smiling"
• As you breathe in, say "present"
Practice breathing techniques for five or 10 minutes until you get the feel of it, then again
several times a day for a few moments. Then it will be instantly ready to use as a "mini-
tranquilizer" whenever you notice yourself starting to feel tense or out of control.
3. Progressive muscle relaxation. This technique will help you get rid of the muscle
tension that is a major sign of uncontrolled stress, and which can lead to headaches, back
pain, and muscle pulls. It is based on the principle that muscles go to a deeper level of
relaxation after they have been tensed.
• Lie on the floor or on a firm bed, or sit in a chair that has good head support.
• Close your eyes and breathe deeply two or three times.
• Next, tighten up the muscles of different parts of your body in turn; keep them
tight while you count silently to five; then let go and imagine the tension going
out as you relax and smooth the muscles.
• Start with your face. Squint your eyes, tighten your teeth and jaw, and wrinkle
your forehead. Feel the tension while you count silently to five, and then let go of
it. Feel the warmth of relaxation coming to your face.
• Next, pull your shoulders up until they nearly touch your ears. Feel the tension
while you count silently to five. Then let go.
• When you have finished, notice the tension and release in all your muscles.
Breathe deeply a few times, and feel relaxed, refreshed, and comfortable.
4. Thought-stopping. This is a good technique for dealing with stress that comes from
your own negative feelings. When you notice negative thoughts, just say "stop!" to
yourself. It may sound too simple to be effective - but it works, even though you may
have to repeat the word several times until the negative thoughts are interrupted.
Sometimes, using mental images can help you stop the negative thoughts:
• Imagine that the negative thoughts are coming from a tape recorder, and that you
can push the "stop" button or turn down the volume to zero.
• Imagine sticky paper that catches your negative thoughts as they fly about.
• Imagine a "stop" sign that blocks your negative thoughts.
• Imagine a box that your negative thoughts get trapped in.
• Imagine you are driving through a car wash that washes the thoughts away.
"Prevent"
There are simple things you can do to help your body and mind withstand stress. These
will help you improve your immune system, your energy level, your self-esteem, and
your sense of well-being.
1. Relaxation. Relaxing regularly will help prevent stress.
• Set aside just 15 minutes every day, whether you are feeling stressed or not.
• Go through whatever relaxation procedures work best for you. Techniques such as
yoga and stretching can be effective, as can progressive muscle relaxation.
2. Regular exercise. If you know people who run, swim, or bicycle regularly, you may
notice that they have less stress than others. When your body is in first-class condition,
your mind and emotions will also benefit. Regular exercise is one excellent way to
"stress-proof" yourself, or at reduce the bad effects of stress.
Exercise can make you look better, sleep better, concentrate better, and withstand disease
better. It will also improve your mood and make you feel better about yourself. The best
exercise for stress-proofing is aerobic activity, which uses your whole body. This
includes jogging, bicycling, brisk walking, cross-country skiing, aerobic dancing,
swimming, rowing, skating, and stair-stepping.
• If you are not used to exercise, start with walking. Walk briskly for about 20
minutes, three times a week.
• As you get in shape, take longer walks, or switch to a more vigorous form of
activity.
• If you don't have access to a lake, mountain, or country road to row, ski, or bike
on, substitute on machines at home or in a gym. But whenever you can, get out
into nature. The quietness and change of scene will help your stress levels.
3. Eating right. You will be much better able to withstand stress if your body feels good,
and it can't feel good if you don't feed it properly.
• Make sure you have three good meals a day, with plenty of fruit, vegetables, and
filling food like bread, rice, or noodles.
• If you get hungry between meals, plan for a nutritious snack like fruit, yogurt, or a
bagel. If you take a snack to work with you, you won't be tempted by junk food.
4. Chemicals: alcohol and drugs. People may be tempted to take a drink or drugs to deal
with stress. It doesn't help. Alcohol may seem to calm you down, but it only masks the
symptoms of stress for a while. Excessive alcohol (and drugs) will give you a rebound;
you are likely to feel more stressed than ever when the effects wear off.
One or two drinks a day, such as a glass of wine or beer with dinner, usually won't harm
you. If you are regularly drinking much more than that, cut down - and if that is hard to
do, get some help.
5. Tobacco. People often say that a cigarette "calms their nerves," but tobacco is really a
stimulant. If you are afraid that quitting would cause you too much stress, talk to your
doctor about prescribing a nicotine patch or gum to help ease the difficulty of withdrawal.
Patches or gum work best if you also join a quit-smoking group or use a good self-help
program that helps you learn to be a nonsmoker. In the long run, you will become a
calmer person if you stop smoking.
6. Caffeine. People have different reactions to caffeine, and most people can take two or
three cups of coffee or tea a day without trouble. But you might try cutting down your
caffeine intake, to see if you are less jumpy. (If you get a headache for a few days, don't
worry; that's a normal withdrawal symptom, and it will go away within a week.)
Other Ways to Manage Stress

In addition to the relaxation practices described in the "TARP" method, there are many
activities and methods that can help manage stress. These include:
• Humor
• Hobbies
• Meditation
• Biofeedback
• Massage therapy
Humor
Many stress-management experts recommend keeping a sense of humor during difficult
situations. Laughing releases muscle tension and helps a person maintain perspective.
Activities as simple as watching a funny movie, listening to a tape of a comedian's
routine, or sharing time with a humorous friend can provide a psychological lift and
relieve stress.
Hobbies
Regular leisure activities are important in reducing stress. Many people benefit from
making time for positive leisure pursuits rather than, for example, spending time
watching television in the evening (although that, too, can be relaxing to some degree).
Relaxing hobbies include gardening, painting, bicycling, photography, carpentry,

collecting, and many others. In order to obtain the most relaxation and enjoyment, the
satisfaction should come in doing the hobby, not in the results. An individual who
pursues gardening for relaxation may not grow prize-winning vegetables, but they can be
eaten. An amateur photographer may not sell photographs, but they can be admired by
friends and family.
Meditation
Used for many years in Eastern cultures, meditation is becoming more widely accepted in
the U.S. as a relaxation technique. Meditation reduces heart rate, blood pressure,
adrenaline levels, and skin temperature.
There are a variety of meditation techniques that share a common goal: to achieve
relaxation by clearing the mind of stressful outside interferences. Meditation involves
achieving a state of consciousness in which the individual focuses on a single thing, such
as a key word, sound, or image.
Meditation techniques rely on quiet surroundings, sitting still, and a repetitive mental
pattern. Various techniques are taught in instruction books and through religious and
nonreligious organizations.
Biofeedback
Biofeedback provides a way for people to learn to control activities over which they
normally have no awareness, such as heart rate and muscle tension. It is considered by
many health professionals to be a valuable therapeutic tool for reducing stress.
Biofeedback involves no discomfort and no risk.
Biofeedback relies on sensitive electronic equipment. Sensors are placed on the body at
various locations to measure skin temperature and muscle activity. The sensors are
attached to a monitor that detects fluctuations when a person is anxious and displays
signals in the form of beeps or light flashes. By watching the monitor, a person learns to
control these stressful responses.
Massage Therapy
Massage is the gentle practice of manipulating the body's tissues in order to soothe and
heal. It is one of the most ancient of the healing arts, and more people today are relying
on it for natural, drug-free relief from the effects of busy, overstressed lives. Massage can
relax the entire body and provide new energy that lingers long after the massage is over.
A number of research studies have shown that massage reduces heart rate, lowers blood
pressure, increases blood circulation and lymph flow, relaxes muscles, improves range of
motion, and increases the production of endorphins, which are the body's own natural
painkillers. There are a number of massage therapy techniques, including Swedish
massage and Shiatsu.
Massages can be for the full body or particular areas of the body, such as the back and
shoulders. Some people choose to wear some clothing during a massage; others prefer to
undress or use a dressing gown. During a massage, the person is warmly covered, and
only the part of the body on which the therapist is working is uncovered.
Starting on Stress Management

Now that you know the effects that stress can have on you, getting started on a stress
management method is necessary. Managing your stress helps you regain control over
your life, instead of being consumed by the amount of stress you had to deal with. Here's
how you can get started:
. Determine what causes stress in your life.
. Think of ways that you can reduce the stress.
. Formulate your stress management technique for relieving stress
Steps for Stress Management

One thing you need to keep in mind is that you cannot expect to totally get rid of stress. It
is a process wherein your initial goal would be to reduce the amount of stress in your life
until you eventually get rid of it.
The following ideas will help you establish a stress management method that could work
for you:
. Improve your time management skills. Most of your stress in life is a result of your
inability to squeeze in your plans within the time available to you. So, creating your
schedule will enable you to achieve more in less time. When creating your schedule, put
the most important items on top of your list.
. Study the way you react to stress. This requires your honesty to determine whether
your own coping mechanisms are effective or not. If not, then look for other means.
. Take care of your body. This is often the most neglected aspect of stress management.
Get enough rest and eat well. Your health is the most vital factor in stress management.
. Change your mindset. Oftentimes, stress is produced only by your mind. So, if that is
the case with you, then adopting a new perspective might reduce your stress levels.
Benefits of Stress Management

If you cannot fully understand the importance of stress management, then try thinking in
reverse. Imagine yourself not suffering from the negative impacts of stress. Without the
negative results of stress in your life, then a person is able to enjoy a more satisfying and
stress-free life.
To sum it up, here are the benefits that can be derived with practicing an efficient stress
management method:
1. It improves your overall health status.
2. You are able to assume a more positive attitude and outlook in life.
3. It increases your productivity since you are able to focus clearly on your tasks.
4. You have better control over your emotions and how you respond to them.
5. And more importantly, you reduce or eliminate negative stress in your life.
About Positive Stress

Although "stress" has become synonymous with something bad, such as traffic jams and
too many work demands, some stress is good for you. Pioneering stress researcher Hans
Sale differentiated between damaging stress (distress) and positive stress. Positive stress
can inspire us to do our best and to perform better than if we were under no stress.
Psychologists tell us that our level of performance is directly related to the level of stress
we experience. This theory says that low and high levels of arousal decrease
performance, whereas intermediate levels enhance performance. In other words, we are
capable of peak levels of performance when under a moderate amount of stress.
Consider a situation such as taking a test or giving a presentation. Reducing your stress
through preparation and careful planning leads to a more confident and competent
performance. The increase in stress motivated and caused you to take action.
Stress management
Stress management is the amelioration of stress and especially chronic stress often for the
purpose of improving everyday functioning.
A set of techniques used to help an individual cope more effectively with difficult
situations in order to feel better emotionally, improve behavioral skills, and often to
enhance feelings of control.
A wide variety of techniques that are utilized to treat the physical and emotional
effects of stress
The person's current ways of coping with stress and anxiety are explored, suggestions are
made to build on these strategies, and relevant practice is provided using simple stress
management-techniques.
A decision-making strategy that is reactive in nature. Once a resource issue becomes

critical, then policy is determined to cope with the immediate problem without any
consideration of long-term implications of such a policy.
The personal analysis of the kinds of stress experienced while flying, the application of
appropriate stress assessment tools, and other coping mechanisms
The process of identifying stress factors and learning coping skills to deal with them
This is a broad category of options/treatments that range from counseling and life
coaching, to massage therapy and remedies (homeopathic, naturopathic, herbal).
A programmed of meditation and deep relaxation intended to reduce the effects of stress
on the system.
Stress management encompasses a range of modalities designed to treat the physical and
emotional toll of stress. The approaches used can include bodywork, meditation,
counseling, energy work, and education.
The skilful handling or use of mental, emotional, or physical strain – in order to avoid
symptoms such as raised blood pressure or depression.
This is particularly helpful once the person has recovered from the anorexia nervosa.
Learning to deal with stress will help to reduce the chance of future relapse.
Research Methodology
Research Design
Research design is simply a plan for a study. This is used as a guide in collecting and
analyzing the data. It can be called a blue print to carryout to study.
The descriptive research design has been used for the study. Descriptive design is a
scientific method which involves observing and describing the behavior of a subject
without influencing it in any way.
Data collection methods

The project is an outcome of survey conducted. A research design is the overall pattern of
framework of the project that stipulates what sources and by what procedure.
Description research is carried out through survey method. Field work is to b carried out
to collect the primary data. The questionnaire was essentially structured in nature and
includes multiple choice and open-ended questions.
The following data gives the detail description of the methodology:
1. Primary data
2. Secondary data
Primary data
The primary or the first hand data will be collected with the help of handing out the
questionnaire to the customers &employees.
Tools for primary data collection
➢ Questionnaire
➢ Personal Interviews
Secondary data
The major source of secondary or supporting data will be internet .
Using this data measurement technique, information was collected by personal

interviews.
Secondary data was collected through company websites, discussions with company
guide.
Tools for secondary data collection
➢ Books
➢ Internet
➢ Articles
Sampling Design
The research was mainly opted on EMPLOYEES survey
The sample size selected for survey was 54 employees.
Sample Character
Employees of Reliance
eliance life insurance
Sampling Plan
Sampling unit : Individuals.
Sampling Method : Non Probability, Convenience Sampling.
Sampling Size : 54 Employees.
Sampling Character : Employees
Sample Area : KOPPAL TERRITORY
I. Analysis of the factors creating work related stress Relationship
1. Behavior from managers/staff

Table 1a.1 showing the number of employees who think that the behavior from their
managers/staff is a factor in creating work related stress
Response Number of respondents Percentage

Not at all 14 26
Occasionally 32 59
Sometimes 7 13
All the time 1 2
Total 54 100
Chart 1a.1 showing the number of employees who think that the behavior from
their managers/staff is a significant factor in creating work related stress
Analysis and Interpretations:
Based on the chart, we can infer that 2/3rd of the employees feel that the behavior from
their managers/ staff influences their stress level. 1/3rd of the employees are not happy
with the behaviors of the managers/staff.
1b). Dealing with conflicting situations

Table 1b.1 showing the number of employees who believe dealing with conflicting
situations affects their stress level

Not at all 12 22
Occasionally 28 52
Sometimes 13 24
All the time 1 2
Total 54 100
Chart 1b.11 showing the number of employees who believe dealing with conflicting
situations affects their stress level
Based on the chart, we can infer that less than 3/4th of the employees agree that they
believe that dealing with conflicting situations affect their stress level .1/4th of the
employees’ believe that dealing with conflicting situations doesn’t affect their stress
level.
1c). Lack of management support

Table 1c.1 showing the number of employees who believe that lack of management
support
Affect their stress level
Not at all 18 33
Occasionally 27 50
Sometimes 8 15
All the time 1 2
Total 54 100
Chart 1c.1 showing the number of employees who believe that lack of management
support
Affect their stress level
Based on the chart, we can infer that 3/4th of the employees believe that lack of
management support affect their stress level which leads to more absenteeism and
avoidance of work and they do not enjoy their work.1/4th of the employees feel that lack
of management support doesn’t affect their stress level.
1 d). Lack of communication with peers

Table 1d.1 showing the number of employees who believe that lack of
communication with peers affect their stress level
Not at all 21 39
Occasionally 21 39
Sometimes 10 18
All the time 2 4
Total 54 100
Chart 1d.1 showing the number of employees who believe that lack of
communication with peers affect their stress level
Based on the chart, we can infer that more than 3/4 th of the employees agree that lack of
communication with peers affect their stress level because of which there is no mutual
understanding between them. 1/4th of the employees feel that lack of communication with
peers doesn’t affect their stress level.
1e). Feeling that your work is not valued

Table 1e.1 showing the number of employees who feel their work is not valued affect
their stress level
Not at all 14 26
Occasionally 27 50
Sometimes 8 15
All the time 5 9
Total 54 100
Chart 1e.1 showing the number of employees who feel their work is not valued
affect their stress level
Based on the chart, we can infer that 2/3rd of the employees feel that if their work is not
valued, it affects their stress level which lower their morale and efficiency to work.1/3 rd
of the employees feel that if their work effort is not valued, it doesn’t affect their stress
level.
Roles
2 a). Conflicting demands in job role
Table 2a.1 showing the number of employees who believe that conflicting demands
in their job role affect their stress level

Not at all 16 30
Occasionally 23 43
Sometimes 13 24
All the time 2 3
Total 54 100
Chart 2a.1 showing the number of employees who believe that conflicting demands
in their job role affect their stress level
Based on the chart, we can infer that 2/3rd of the employees agree that the conflicting
demands in job role affect their stress level because of which they have too much stress in
fulfilling these demands. Only 1/3rd of the employees feel that the conflicting demand in
job role doesn’t affect their stress level.
2b). Unclear job description

Table 2b.1 showing the number of employees who believe that unclear job
description affect their stress level

Not at all 14 26
Occasionally 23 43
Sometimes 14 26
All the time 3 5
Total 54 100
Chart 2b.1 showing the number of employees who believe that unclear job
description affect their stress level
Based on the chart, we can infer that more than half of the employees agree that they are
stressed by the unclear job description. Nearly 1/3rd of the employees feel that they are
not stressed by the job description.
2 c). Lack of support in job role

Table 2c.1 showing the number of employees who believe that lack of support in
their job role affect their stress level

Not at all 14 26
Occasionally 29 54
Sometimes 10 18
All the time 1 2
Total 54 100
Chart 2c.1 showing the number of employees who believe that lack of support in
their job role affect their stress level
Based on the chart, we can infer that 2/3rd of the employees agree that lack of support in
job role affect their stress level. Only 1/3rd of the employees feel that lack of support in
job role doesn’t affect their stress level. .
2 d). Efforts not valued.

Table 2d.1 showing the number of employees who believe that efforts not valued

Not at all 19 35
Occasionally 19 35
Sometimes 13 24
All the time 3 6
Total 54 100
Chart 2d.1 showing the number of employees who believe that efforts not valued
Based on the chart, we can infer that nearly 3/4th of the employees feel that if their efforts
are not value, it affects their stress level which de-motivates the employees and there is
less belongingness towards the organization. 1/4th of the employees feel that if their
efforts are valued , it doesn’t affect their stress level.
Change
3 a). Pace and intensity of change

Table 3a.1 showing the number of employees who believe that the pace and intensity
of change affect their stress level

Not at all 20 37
Occasionally 25 46
Sometimes 9 17
Total 54 100
Chart 3a.1 showing the number of employees who believe that the pace and
intensity of change affect their stress level
Based on the chart, we can infer that 2/3rdof the employees agree that their stress level is
affected with the pace and intensity of change because they are not well informed and
new change takes time for being adopted by the employees. 1/3rd of the employees feel
that there is no impact of the pace and intensity of change on their stress level.
Support
4a). Lack of information about what is going on

Table 4a.1 showing the number of employees who think lack of information about
what is going on affects their stress level

Not at all 15 28
Occasionally 25 46
Sometimes 13 24
All the time 1 2
Total 54 100
Chart 4a.1 showing the number of employees who think lack of information about
what is going on affects their stress level
Based on the chart, we can infer that 3/4th of the employees agree that the lack of
information about what is going on affects their stress level as there is no delegation of
information to the employees. 1/4th of the employees feel that their stress level is not
affected by lack of information about what is going on.
4 b). Insufficient admin support

Table 4 b.1 showing the number of employees who believe that insufficient admin
support affects their stress level

Not at all 25 46
Occasionally 15 28
Sometimes 12 22
All the time 2 4
Total 54 100
Chart 4b.1 showing the number of employees who believe that insufficient admin
support affects their stress level
Based on the chart, we can infer that 3/4th of the employees agree that insufficient admin
support affect their stress level because of which there is more work absenteeism and
turnover. 1/4th of the employees feel that there is no affect of insufficient admin support
on their stress level.
II. I am able to cope with the demands of my job.
Table II.1 showing number of employees who are able to cope with the demands of
their job

Strongly agree 13 24
Agree 32 59
Disagree 6 11
Strongly disagree 3 6
Total 54 100
Chart II.1 showing the showing number of employees who are able to cope with the
demands of their job

Based on the chart, we can infer that 2/3rd of the employees agree that they are able to
cope up with the demands of their jobs so the work pressure is not so much. Only 1/3 rd of
the employees are not able to cope up with the demands of their jobs
III. I am able to have a say over the way I do my work.

Table III.1 showing the number of employees who have a say over the way they do
their work

Strongly agree 7 13
Agree 39 72
Disagree 7 13
Total 54 100
Chart III.1 showing the number of employees who have a say over the way they do
their work
Inferences:
Based on the chart, we can infer that 3/4th of the employees agree that they have a say
over the way they do their work because there is cordial relation with their superiors. 1/4th
of the employees feel that they are not able to have a say over the way they do their work
because of difference in their opinions with that of their superiors.
IV. I believe that I receive adequate support and information from my colleagues and superiors.
Table IV.1 showing the number of employees who receive adequate support and
information from their colleagues and superiors

Agree 24 45
Disagree 8 15
Total 54 100
Chart IV.1 showing the number of employees who receive adequate support and
information from their colleagues and superiors
Based on the chart, we can infer that 3/4th of the employees agree that they receive
adequate support and information from their colleagues and superiors as there is a cordial
relation with the superiors and colleagues. 1/4th of the employees feel that there is no
adequate retrieval of support and information from their colleagues and superiors.
V. I am happy being surrounded by positive behaviors at work.

Table V.1 showing the number of employees who are happy being surrounded by
positive behaviors at work

Agree 27 50
Disagree 12 22
Total 54 100
Chart V.1 showing the number of employees who are happy being surrounded by
positive behaviors at work
Based on the chart, we can infer that exactly 3/4 th of the employees agree that they are
happy being surrounded by positive behaviors at work which encourages them to do their
work and increases their performance level.1/4thof the employees feel that there is no
positive behavior at work.
VI. I understand my role and responsibilities within the organization.

Table VI.1 showing the number of employees who understand their roles and
responsibilities within the organization
Agree 28 52
Disagree 8 15
Total 54 100
Chart VI.1 showing the number of employees who understand their roles and
responsibilities within the organization
Based on the chart, we can infer that 2/3rd of the employees agree that they understand
their roles and responsibilities within the organization as they are clear about what to do
on the job and the roles were communicated properly to them . Only 1/3rd of the
employees are not able to understand their roles and responsibilities within the
organization.
VII. The organization engages staff frequently when undertaking organizational change.
Table VII.1 showing the number of employees who feel that the organization
engages staff frequently

Strongly agree 5 9
Agree 30 56
Disagree 18 33
Total 54 100
Chart VII.1 showing the number of employees who feel that the organization
engages staff frequently
Based on the chart, we can infer that more than half of the employees agree that the
organization engages staff frequently when undertaking organizational change as there is
mutual trust between the employees and organization. Less than half of the employees
feel that the organization does not engage staff frequently when undertaking
organizational change.
VIII. Do you think the working hours per week influence their stress level?
Table VIII.1 showing the number of employees who believe the average number of
working hours per week influence their stress level

Agree 15 28
Disagree 13 24
Total 54 100
Chart VIII.1 showing the number of employees who believe that the average
number of working hours per week influence their stress level
Based on the chart, we can infer that more than half of the employees agree that their
average number of work hours per week make them occasionally stressful as they have
too much of workload . Nearly half of the employees feel that their average working
hours is manageable and correct for them.
IX. Do you think that your work life is progressive? (Progressive is continuous
success in their work).
Table IX.1 showing the number of employees who think that their work life is
progressive

Strongly agree 9 17
Agree 15 28
Disagree 25 46
Total 54 100
Chart IX.1 showing the number of employees who think that their work life is
progressive
Based on the chart, we can infer that less than half of the employees agree that their work
life is progressive which motivates them to work more and live a peaceful life. More than
half of the employees feel that their work life is challenging and sometimes are not able
to meet work requirements.
X. Are you satisfied with the program for reducing the stress?
Table X.1 showing the number of employees who are satisfied with the program for
reducing the stress

Yes 17 65
No 9 35
Total 26 100
Chart X.1 showing the number of employees who are satisfied with the program for
reducing the stress
Based on the chart, we can infer that 2/3rd of the employees are satisfied with the
programs for reducing the stress which helped in maintaining a balance between their
work and stress and helped in working more efficiently.1/3rd of the employees feel that
they are not satisfied with the programs which affecting their work.
FINDINGS
• Majority of the respondents are happy surrounded by positive behavior but there
are few respondents who gets affected by the behavior of the managers/staff.
• Majority of the respondents say that they are able to cope with the demands of
their job.
• The majority of the respondents believe that they receive adequate support from
their superiors and colleagues.
• 72%of employees feel that lack of support from peers will affect their stress level
since majority of respondents believe that they receive adequate support in the
organization. Lack of support from peers is not a significant factor for stress for
the employees.
• Majority of the respondents believe that lack of communication with peers and
lack of information about what is going on affect their stress level.
• Maximum of the respondents feel that if their work and efforts are not valued, it
affects their stress level.
• 74% of the respondents believe that unclear job description would affect their
stress level, since 82%understand their roles and responsibilities. Job ambiguity
is not a significant factor for the stress level.
• 63% of the respondents believe that the pace and intensity of change affect their
stress level
• 54% of the respondents believe that insufficient admin support affect their stress
level
• 65% of the respondents believe that the organization engages staff frequently
when undertaking organizational change
• 58% of the respondents agree that the number of working hours per week
influences their stress level
• 45% of the respondents agree that their work life is progressive
• 65% of the respondents are satisfied with the program for reducing their stress
LIMITATIONS OF THE STUDY
The project duration was only for 04 weeks (almost 1month) within which many things
cannot be dealt practically. There was a time constraint.
Due to limitation of time, only one survey was possible. The respondent response may be
genuine while answering the questionnaire. The study was relevant to only one
department.
EXCEPTED CONTRIBUTION FROM THE STUDY
➢ The employees can be given full support from their superiors by appraising their
work and efforts.
➢ The employees should be given all the information relevant to their job and things
going on in the company.
➢ The employees should be encouraged and work in their innovative manner with
the admin support.
➢ The superiors can encourage informal way of interaction and communication with
the peers.
➢ The employees should be well in advance informed about the change they are
bringing in the organization.
➢ The stress of the employees can be reduced if there is reduction in their average
number of working hours per week.
➢ There should be Self esteem Enhancement program.
➢ The management may use the technique of Goal setting approach in coordination
with the employees
➢ Since the organization has conducted a stress management programs, so these

programs should focus on the major stressors which affects their stress level
➢ The dealing with conflicting situations and work life is the major stressors which
affects the employees so efforts should be made to employees at ease
Stress is inevitable. There is a need to manage with the stress in present day. Though
stress is helpful but usually harmful for his/her health and ultimately affects the
performance .So stress need to be managed with minimum its debilitating effects. It has
been used to denote the way of dealing with stress or the effort major condition of harm
threat or challenge when routine or automatic response is not readily available. It is also
suggested that various strategies to be used to manage stress. Mover formulated strategies
vary from person to person and in the same person from time to time. The various
strategies may be at the individual level and at the organizational level. In competitive
and complex world, implementation of the strategies to manage stress may be considered
with extra caution. To manage stress in continuous process and essential aspect in
everyday life
QUESTIONNAIRE
I. Which factors associated with your current post do you think create work related
stress? Please tick the options.
Sometim All the
Stress related factors Not at all Occasionally
es times
1 Relationships
a. Behavior from managers/ staff
b. Dealing with conflicting situations
c. Lack of management support
d. Lack of communication with peers
e. Feeling that your work is not valued
2 Role
a. Conflicting demands in job role
b. Unclear job description
c. Lack of support in job role
d. Efforts not valued
3 Change
a. Pace and intensity of change
4 Support
a Lack of information about what is going on
b Insufficient admin support
SD- Strongly Disagree, D- Disagree, A- Agree and SA-strongly agree.
II. I am able to cope with the demands of my job.
a) SD b) D c) A d) SA
III. I am able to have a say over the way I do my work.
IV. I believe that I receive adequate support and information from my

colleagues and superiors.
V. I am happy being surrounded by positive behaviors at work.
V. I understand my role and responsibilities within the organization.
V. The organization engages staff frequently when undertaking

organizational change.
VIII. Do you think that number of working hours per week influences their
stress level?
 Strongly agree
 Agree
 Disagree
 Strongly disagree
IX. Do you think that your work life is progressive? (Progressive is

continuous success in their work).
• Strongly agree
• Agree
• Disagree
• Strongly disagree
IX. Are you satisfied with the programs for reducing the stress level?
○ Yes
○ No
BIBLIOGRAPHY
TEXTBOOKS:
Essentials of Human resource management and industrial relations- P. Subba Rao
Human resource and personnel management- K. Aswathappa
Websites: www.reliancelife.co.in
www.licindia.com
Newspaper: Business Line

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RELIANCE LIFE INSURANCE, KOPPAL

Chapter 1 Rationale for the study 1

RATIONALE FOR THE STUDY

TITLE OF THE PROJECT

“Stress management towards employees in reliance life insurance”

OBJECTIVE OF THE STUDY

The objectives of the study are as follows:

➢ To study the stress level of the employees at work

➢ To study the various reasons that leads to stress in employees

➢ To determine the overall consequences of stress on their work.

➢ To study the measures taken to manage stress

SCOPE OF THE STUDY

PROFILE OF THE COMPANY

RELIANCE LIFE INSURANCE CO. LTD.

• Undaunted, Dhirubhai managed to convince a large number of first-time retail

• Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)

"This certification is a significant milestone in our continuous quest to offer innovative

CORPORATE VISION AND MISSION

Empowering everyone live their dreams

Emerge as transnational Life Insurer of global scale and standard

Achieve impeccable reputation and credentials through best business practices

• RLIC continues to be one of the two Life Insurance companies in India to be

PRODUCTS OFFERED BY RELIANCE LIFE

1.Reliance Term Plan

2. Reliance Simple Term Plan

3. Reliance Special Term Plan

4. Reliance Credit Guardian Plan

5. Reliance Special Credit Guardian Plan

6. Reliance Endowment Plan

7. Reliance Special Endowment Plan

8. Reliance Connect 2 Life

9. Reliance Whole Life Plan

10. Reliance Wealth + Health Plan

11. Reliance Cash Flow Plan

Savings & Investment Plans

1. Reliance Super Invest Assure Plan

2. Total Investment Plan I - Insurance

3. Reliance Wealth + Health Plan

4. Reliance Automatic Investment Plan

5. Reliance Money Guarantee Plan

6. Reliance Cash Flow Plan

7. Reliance Market Return Plan

8. Reliance Endowment Plan

9. Reliance Special Endowment Plan

10. Reliance Whole Life Plan

11. Reliance Golden Years Plan

12. Reliance Golden Years Plan Value

13. Reliance Golden Years Plan Plus

14. Reliance Connect 2 Life Plan

1. Total Investment Plan II - Pension

2. Reliance Golden Years Plan

3. Reliance Money Guarantee Plan

1. Reliance Super Invest Assure Plan

2. Reliance Child Plan

3. Reliance Secure Child Plan

4.Reliance Wealth + Health Plan

SOME LUCRATIVES PLANS WHICH RELIANCE OFFERS

RELIANCE ENDOWMENT PLAN

So, go ahead... dream!!.

1 .On maturity receive Sum Assured plus bonuses

2. Wealth creation through bonus additions

7. Choose to avail of Policy Loan after three years