A project report on

RELIANCE LIFE INSURANCE

IN THE PARTIAL FULLFILMENT OF THE REQUIREMENTS FOR THE BACHELORS DEGREE IN BUSINESS ADMINISTRATION IN FINANCE

School of Business studies Under

Supervision by K.R.GOLA

Submitted by ANSHU SINGH RAJPUT 090241013

GUIDE CERTIFICATE

This is to certify that this study report entitled realince life insurance Submitted in Partial

fulfillment of the Degree of BBA done by MS. ANSHU SINGH RAJPUT Roll No.090241013 is an authentic

Work carried out by him at - under my guidance. The matter embodied in this study report has not been submitted earlier for award of any Degree or diploma to the best of my knowledge and belief.

Signature of the Guide

Signature of the Student

ACKNOWLEDGEMENT

A product is never the sole product of a person whose name has appeared on the cover. Even the best effort may not prove successful without proper guidance. For a good project one needs proper time, energy, efforts, patience, and knowledge. But without any guidance it remain unsuccessful. I have done this project with the best of my ability and hope that it will this purpose. First of all I wish to express my indebtness to MR K.R.GOLA for his valuable suggestion and guidance throughout the project. It was really a great learning experience and I am really thankful that sir not only helped me in the successful completion of this report but also spread his precious and valuable time and in expanding my knowledge base. After the completion of this project I feel myself as a well aware person about the research procedure and the complexities than can arose during the process. Also I get an insight of the investment company. I am also grateful to all those personalities who have helped me directly or indirectly or indirectly in bringing up this project.

STUDENT CERTIFICATE
This is to certify that the study report entitled reliance life insurance is done by me is an

authentic work carried out for the partial fulfillment of the requirements for the award of the degree of BBA

under the guidance of Prof. K.R.Gola and the matter embodied in this study report has not been submitted

earlier for award of any degree or diploma to the best of my knowledge and belief. Signature of Student Name of the Student ANSHU SINGH RAJPUT Roll. No.090241013

ABSTRACT
This research was carried out on performance evaluation of reliance life insurance as per risk management aspects. The aim of this research was to find out about the success of reliance life insurance and how their insurance is number one in India. To carry out this research I used questionnaires to find out views from different customer coming there. In my research I used two different approaches quantitative and qualitative as I had numerical data and views from others. From this research I found out that customer service at its best is the key role of this insurance, and they provide faster service and its branches are developing world wide.

INDEX
1. INSURANCE INDUSTRY 1.1 Meaning of Insurance 1.2 Importance of Insurance 1.3 Difference between Insurance and Assurance 1.4 Principles of Insurance 1.5 History of Insurance 1.6 Meaning of Life Insurance 1.7 Key features of Life Insurance 1.8 Benefits of Life Insurance 1.9 Role of Life Insurance in the growth of economy

2 .INTRODUCTION TO THE COMPANY 2.1 About Reliance Life Insurance 2.2 History 2.3 Journey so far 2.4 Role of IT at Reliance Life Insurance 2.5 Mission 2.6 Core Values 2.7 Future Plans 2.8 Head Office 2.9 Branches 3. PRODUCT MIX 3.1 Traditional plan 3.2 unit linked plan

4. RESEARCH METHODOLOGY 4.1 Objective of the study 4.2 Sampling Method and Sampling Size 4.3 Limitations 4.4 SWOT Analysis 5.FINANCE DEPARTMENT 6.CONCLUSION 7. BIBLIOGRAPHY AND REFRENCES

1.1 MEANING OF INSURANCE

1.) Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is a collective bearing of risk. Insurance is a financial device to spread the risks and losses of few people among a large number of people, as people prefer small fixed liability instead of big uncertain and changing liability.

2.) Insurance can be defined as a legal contract between two parties whereby one party called insurer undertakes to pay a fixed amount of money on the happening of a particular event, which may be certain or uncertain. The other party called insured pays in exchange a fixed sum known as premium. 3.)Insurance is desired to safeguard oneself and ones family against possible losses on account of risks and perils. It provides financial compensation for the losses suffered due to the happening of any unforeseen events.

1.2 IMPORTANCE OF INSURANCE

There are many issues, which require study. The scope of the study of insurance industry of India would be very great as there are ongoing developments in the industry after the opening of the sector.

The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. Government may in near future allow 49% FDI in Insurance. This would lead to more capital inflow by foreign partners.

Another major issue is the effects on LIC after the entry of private players in the market. Though market share of LIC has been affected, it has improved in terms of efficiency.

There are number of other hot topics like penetration of Health Insurance, Rural marketing of insurance, new distribution channels, new product ranges, insurance brokers regulation, incentive scheme of development officers of LIC etc. So it offers lot of scope for studying the insurance industry.

Right now the insurance industry has great opportunities in a country like India or China which huge population.

1.3 DIFFERENCE BETWEEN INSURANCE AND ASSURANCE

Assurance is older in history and it was used to describe all types of Insurances. From 1826, the term assurance came to be used only for the risks Covered by life insurance and the term insurance was exclusively used to Denote the risks covered by marine, fire, etc.

The word assurance indicated certainty. In life insurance, there is an Assurance from the insurance company to make payment under the policy Either on the maturity or at earlier death. On the other hand the word Insurance was used to denote indemnity type of insurances where the Insurance company was liable to pay only in case of the loss damage the Property.

The insured event was bound to happen sooner or later under assurance but the event insured against may or may not happen under insurance.

The principle of indemnity applies to insurance contracts(non-life) only. The scope of the word, insurance is wider.

1.4 PRINCIPLE OF INSURANCE

1.) Principle of utmost good faith
It means maximum truth. Both the parties should disclose all Material information regarding the subject matter of insurance.

2.) Principle of indemnity

This means that if the insured suffers a loss against which the policy has Been made, he shall be fully indemnified only to the extent of loss. In other words, the insured is not entitled to make a profit on his loss.

3) Principle of subrogation
This means the insurer has the right to stand in the place of the insured after settlement of claims in so far as the insureds right of recovery from an alternative source is involved. The insurer before the settlement of the claim may exercise the right. 4.) Principle of causa proxima The cause of loss must be direct and an insured one in order to claim of compensation. 5.) Principle of insurable interest The assured must have insurance interest in the life or property insured. Insurable interest is that interest which considerably alters the position of the assured in the event of loss taking place and if the event does not take placed, he remains in the same old position.

1.5 HISTORY OF INSURANCE

The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders used to bear risk of the carvan by giving loans, which were later repaid with interest when the goods arrived safely.

The concept of insurance as we know today took shape in 1688 at a place called Lloyds Coffee House in London where risk bearers used to meet to transact business. This coffee house became so popular that Lloyds became the one of the first modern insurance companies by the end of the eighteenth century. Marine insurance companies came into existence by the end of the eighteenth century. These companies were empowered to write fire and life insurance as well as marine. The Great Fire of London in 1966 caused huge loss of property and life The early history of insurance in India can be traced back to the Vedas. The Sanskrit term Yogakshema (meaning well being), the name of Life Insurance Corporation of Indias corporate headquarters, is found in the Rig Veda. The Aryans practiced some form of community insurance around 1000 BC. Life insurance in its modern form came to India from England in 1818. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75 provident societies carrying on life insurance business in India. Insurance business flourished and so did scams, irregularities and dubious investment practices by scores of companies. As a result the government decided to nationalize the life assurance business in India. The Life Insurance Corporation of India (LIC) was set up in 1956.

1.6 MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction: the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person. Another important person involved in a life insurance policy is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. Life insurance may be divided into two basic classes term and permanent. Term life insurance provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value.
Permanent life insurance is life insurance that remains in force until

the policy matures, unless the owner fails to pay the premium when due. Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy. If you want insurance protection only, and not a savings and investment Product, buy a term life insurance policy. If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years.

1.7 KEY FEATURES OF LIFE INSURANCE

1) Nomination: When one makes a nomination, as the policyholder you continue to be the owner of the policy and the nominee does not have any right under the policy so long as you are alive. The nominee has only the right to receive the policy monies in case of your death within the term of the policy. 2) Assignment: If your intention is that your policy monies should go only to a particular person, you need to assign the policy in favor of that person. 3) Death Benefit: The primary feature of a life insurance policy is the death benefit it provides. Permanent policies provide a death benefit that is guaranteed for the life of the insured, provided the premiums have been paid and the policy has not been surrendered. 4) Cash Value: The cash value of a permanent life insurance policy is accumulated throughout the life of the policy. It equals the amount a policy owner would receive, after any applicable surrender charges, if the policy were surrendered before the insured's death. 5) Dividends: Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company's divisible surplus. 6) Paid-Up Additions: Dividends paid to a policy owner of a participating policy can be used in numerous ways, one of which is toward the purchase of additional coverage, called paid-up additions.

7) policy loan :Some life insurance policies allow a policy owner to apply for a loan against the value of their policy. Either a fixed or variable rate of interest is charged. This feature allows the policy owner an easily accessible loan in times of need. 8) Conversion from Term to Permanent: When in need of temporary protection, individuals often purchase term life insurance. If one owns a term policy, sometimes a provision is available that will allow her to convert her policy to a permanent one without providing additional proof of insurability. 9) Disability Waiver of Premium Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an additional cost. It guarantees that coverage will stay in force and continue to grow

1.8 Benefit Of Life Insurance

1) Risk cover: Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of the future. 2) Tax Deduction: Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to one lakh rupees. Life Insurance policies thus decrease the total taxable income of an individual.

3) Loans: An individual can easily access loans from different financial institutions by pledging his insurance policies.

4) Retirement Planning: What had provided protection against the financial consequences of premature death may now be used to help them enjoy their retirement years. Moreover the cash value can be used as an additional income in the old age. 5) Educational Needs: Similar to retirement planning the cash values that flow from ones life insurance schemes can be utilized for educational needs of the insurer or his children.

1.9 ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units. It has a Consistent profit and dividend paying record accompanied by a steady growth in its financial resources. Through investments in the Government sector and socially- oriented sectors the Industry has contributed immensely to the nation's development. The industry is recognized as one of the largest financial Institutions in the country. To protect the country's foreign exchange reserves, the reinsurance arrangement are so organized that maximum retention is made possible within the country while at the same time protecting interests of the policy holders.

2. INTRODUCTION OF THE COMPANY

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934.

Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate.

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.

2.2 HISTORY
Reliance Capital Limited announced the launch of its life insurance business on February 1, 2006. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority.

It was in August 2005 that the ball was set rolling when Reliance Capital Limited, the financial arm of Reliance Anil Dhirubhai Ambani Group (ADAG) announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited; and the formal transfer of shares took place in October 2005.

The company will issue all policy contracts under the Reliance Life Insurance Company limited name. All the existing policy contracts also stand transferred to the Reliance Life Insurance entity with all the original contractual terms and commitments intact.

2.3 JOURNY SO FAR

2005
August: Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100 percent shareholding in AMP Sanmar Life Insurance Co Ltd.

2006
January 17: Mr. Nandgopal participates in a one-day conference on Optimising growth opportunities through Distribution Matrix: Emerging Bancassurance organized by the Asia Insurance Post at the Taj President, Mumbai.

February 1: Rliance Life Insurance officially launched. February 16, 17, 18: Strategy meet at the Reliance Management Institute. Amongst those who participate are the CEO, COO, Functional Heads, Regional Managers and Regional Sales Managers.
February 26: A Puja held at the Churchgate office situated in Express Building, 4th Floor, 14 E Road, Mumbai.

March 1: Churchgate office inaugurated by Mr. Amitabh Jhunjhunwala, Mr. Amitabh Chaturvedi and Mr. Nandgopal. March 6: Shifting to the new premises at Churchgate commences.

March 7: The new office at Chennai, at the Trapezium, First Floor, # 39, Nelson Manickam Road, inaugurated by their CEO Mr. Nandgopal, Mr. KV Srinivasan and Mr. Sureshbabu also graced the occasion.

2.4 ROLE OF IT AT RELIANCE LIFE INSURANCE

1) World Class Data Centre: They plan to establish a Primary Data Centre at Navi Mumbai (Dhirubhai Ambani Knowledge City) which will cater to their company needs across India, with fail-over capability to their Chennai Data Centre within the same business day in occurance if an incident or Disaster happens.

2) Inter Office Connectivity: All their Branch / Area and Regional offices will be interconnected to their Data Centre with a 24x7 access to Core Applications like Lotus Mail, Life-Asia and Internet Applications

3) Customer Care Centre: They will host a centralized Customer Care Centre at Dhirubhai Ambani Knowledge City at Navi Mumbai, which cater services to internal and external queries and complications. A customer Relationship Management Tool (CRM) and Lead Management System (LMS) are in progress. 4) Web Portal: This portal will be an interface between both internal employees and their external users. So me of the functions included in their portal are Policy Tracking Systems, Corporate News, Quality Checking System, Under Writing Medical System, and Agent Management System etc.

5) R World: Reliance Mobile R-World will provide online information about their Company, Products, and Policy Services to their existing customers, Agents/Advisors and Lead Generators. 6) SMS Alerts: -

Customer Alerts will include Welcome/Birthday/Anniversary message, Policy Dispatch Details, Policy Servicing SMS like Premium Receipt and Ren ewal Premium reminders etc. 7) Life and Group Asia: A common middleware between these applications will enable Group Life Customers to view their individual

Single Life Insurance Plan details taken with Reliance Life Insurance and vice versa.

8) Document Management System: This application will enable them to have a paperless office and thus mitigate the risk of losing vital records/papers. 9) Wireless Data Access: This will enable identified Top Sales Managers and Top Advisors to access real time data for both LMS and CRM on the fly through Handheld PDA device.

10) SAP ERP Modules: SAP (Finance and HR Modules), will automate the Expense, Travel and Leave Management Systems.

2.5 MISSION
The mission of Reliance Life Insurance Company Limited is to be the best in every sphere- business results, customer care and employee focus. The aim of the company is to Think Bigger and Think Better.

2.6 CORE VALUES

Reliance Life Insurance Company Limited has some core values which are listed as follows:

1) 2) 3) 4) 5) 6)

Result Oriented Performance Driven Customer Focused Learning and Development Oriented Employee Centric Informal and Fun

2.7 FUTURE PLANS

Forty-four new branches to be opened across the country in the coming months; and a pan India presence with 162 branches in the coming year.

A state-of-the-art customer care centre will provide continuous, responsive services to the caller and promptly address queries, collate feedback and suggestions from the caller, who may be both prospective and existing clientele and from channel partners in Chennai and Mumbai.

It will be launching additional products aimed at providing unparalleled service to its valued clientele.

2.8 HEAD OFFICE

Reliance Life Insurance Company Limited, The Trapezium, 39, First Floor, Nelson Manickam Road, Chennai 600 029.

3. PRODUCT MIX

3.1 Traditional plan

Life insurance products are designed to suit the requirements of customers. Fundamentally the product provide for:

Risk cover Health cover Investment

In every product, to a certain degree, risk cover is imperative for it to fall under the category of insurance. Based on the coverage of the product, the premiums are calculated and the customer pays accordingly. In order to suggest the right product, it is essential for an agent to understand the requirements of the customer well.

Reliance Life Insurance Company Limited has offered 9 traditional plans to the customers, which are listed as follows:

1) 2) 3) 4) 5) 6) 7) 8)

Reliance Term Plan Reliance Whole Life Plan Reliance Child Plan Reliance Endowment Plan Reliance Special Endowment Plan Reliance Cash Flow Plan Reliance Credit Guardian Plan Reliance Special Credit Guardian Plan

1) Reliance Term plan: This insurance policy is designed for those who only want life cover for the protection of their family, and do not wish to save for themselves. It can also be useful to business firms that wish to provide financial security to their business against the sudden loss of partners or valuable manpower. Hence, this is a high-risk plan with a low premium Features: a) Purely a term plan b) Entry age minimum 18 years and maximum 65 year c) Maximum premium paying term is 30 year d) Loan facility N.A. e) Maturity amount = Sum assured 2) Reliance Whole Life Plan: This insurance policy is designed for people who do not wish to avail of any benefits themselves but wish to create an immediate estate to protect their family by availing of insurance cover on their life at a very low cost. Features: a) b) c) d) e) It is a whole life insurance policy with profits Low cost life cover Maturity age is 85 year or 99 years last birthday as chosen Maturity amount = Sum assured + Vested bonus Tax ben efit is available

3) Reliance Child Plan: This insurance policy is designed for people who wish to save money for a future time when there will be a recurring need for substantial amounts of money.

This money is payable in equal installments over the last 4 years of the policy term. Features: I. Minimum entry age is 20 year and maximum 60 year a) Minimum sum assured is Rs. 25,000. b) Minimum premium paying term is 5 year and maximum 20 year c) Tax ben efit is available d) Maturity amount = Four equal installment of sum insured in last four year plus vested bonus in the last year e) Loan facility is available

4) Reliance Endowment Plan: Reliance Life Insurances Reliance Endowment Plan is the key to all your financial needs. It is an inexpensive and easy way to protect you, your family or your business. Reliance Endowment Plan also gives you the additional benefit of participating in the companys profits, which you will receive at the end of the policy period.

Features: a) Entry age minimum is 5 year and maximum 65 year b) Maturity age minimum is 18 year and maximum 75 year c) Minimum premium paying term is 5 year and maximum 35 year in case of regular and in case of single 15 year. d) Minimum sum assured is Rs. 25,000 or as determined by the minimum premium e) Maximum sum assured is Rs. 5,00,000 (entry age below 18 years and no limit for entry age 18 and above) f) Premium mode annual, half yearly, quarterly and monthly (by salary deduction only) g) Loan up to 90% of the surrender value of the policy h) Maturity amount = Guaranteed sum assured + Reversionary bonus

5) Reliance Special Endowment Plan: -

This insurance policy is designed for people who wish to combine saving with extended securities.
This plan also participates in the profits. Feature:-

a) Entry age minimum 12 year and maximum 65 years. b) Minimum sum assured is rs.25,00. c) Minimum premium paying term is 10 years and maximum is 40 year.

d) Unique feature of this policy is that five year life protection continues after you have stopped the payment of premium e) Tax benefit is available f) Under this policy bonus is compounded yearly g) Loan facility is available

6) Reliance Cash Flow Plan: This insurance policy is designed for those who have a recurring need for reinvestment in business or look for short-term investment channels. The advantage of the policy is that they need not part with a sizable amount of money at any one time, but create, through regular premium payments, a periodic return of lump sums which become available for reinvestment at higher returns, while providing simultaneously, substantial life cover. The money is payable in installments. The first installment is paid at the end of the 4th year and thereafter at the end of every 3rd year. Features:a) Plan with profits b) Minimum entry age is 15 year and maximum is 63 year c) Maximum premium paying term is 34 year d) Loan facility is not available e) In case of death full sum assured + accrued bonuses up to the date of death is payable immediately. f) In case of survival up to maturity date all premium paid g) Rider accident death and critical illness h) Mode of payment is available

7) Reliance Credit Guardian Plan: -

This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death.

Features: a) Loan protection against home, home improvement, two wheelers and four wheelers b) c) d) e) In case of death remaining loan amount paid immediately In case of survival no benefit is available Premium payment option for single and regular is available Premium paying term is 2/3 of loan period and remaining period paid by the company

8) Reliance Special Credit Guardian Plan: -

This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death, disability or critical illnesses.

3.2 UNIT LINKED PLAN

Each premium paid by the insured person is split: a part is used to provide life assurance cover, while the balance (after the deduction of costs, expenses, etc.) is used to buy units in a unit trust.

In this way, a small investor can benefit from investment in a managed fund without making a large financial commitment. As they are linked to the value of shares, unit linked policies can go up or down in value. Policyholders can surrender the policy at any time and the surrender value is the selling price of the units purchased by the date of cancellation 9less expense). A small part of the contribution is used for providing life cover and the balance is invested in unit. Legal heirs are entitled to the amount of insurance cover and entitled units in case of death of the insured.

A unit-linked policy is a life assurance policy in which the benefits depend on the performance of a portfolio of shares.

Reliance Life Insurance Company Limited has also offered the two Unit Linked Plans, which are listed as follows: 1) Reliance Market Return Plan 2) Reliance Golden Years Plan

Amongst the above plans the Reliance Market Return Plan is the largest selling plan of the Reliance Life Insurance Company Limited. The above two ULIP plans are discussed as follows: 1) Reliance Market Return Plan: Reliance Market Return Fund is the unit-linked product that helps you invest in the financial markets in a combination of investment instruments of your choice. Reliance Market Return Fund unit-linked insurance plan provides you with a basket of fund options.

features:a) Minimum entry age is 30 days and maximum entry age is 65 year b) Maximum policy term 40 year and minimum policy term 5 year c) Mode of premium as annual, quarterly, half yearly and monthly Rs. 1000 (for salary deduction only) and Rs. 2500 (standing order/credit card) d) Top up premium minimum Rs. 2500 e) Option of investment fund i. Capital secure 100% fixed interest securities ii. Balanced minimum 80% fixed interest securities and maximum 20% in equity iii. Equity 100% equity iv. Growth minimum 60% fixed interest securities and maximum 40% in equity f) Loan facility is not available g) One switches every year free and subsequent switches charged 1% of the amount switched

2) Reliance Golden Years Plan: -

Reliance Golden Years Plan.. The Reliance Life Insurance no-worry stay happyretirementplan. Reliance Golden Years Plan is a flexible package that provides freedom of choice in choosing the type of investment, life cover, vesting options such as commuting and annuity options. Contributions provide Income tax savings as well. Reliance Golden Years Plan, a flexible pension product is available for all individuals who are between the ages of 18 and 65.

Features: -

a) Entry age minimum is 18 year and maximum 65 year b) Minimum premium amount Rs. 10,000 and maximum is unlimited c) Mode of premium payment is available d) Pension plan with risk cover and without risk cover e) Choice of investment

RESEARCH METHODOLOGY

4.1 OBJECTIVES OF STUDY

1) To get some good market exposure by dealing with the prospects face to face. 2) To improve our ability to sell a financial product like life insurance. 3) To know the perception of the consumer about life insurance.

4) To get a deep knowledge of the financial product like insurance. 5) To get some information about the market share of Reliance Life Insurance as compared to the giants like LIC and to know the standing of the company in the market.

4.2 SAMPLING METHOD AND SAMPLE SIZE

Introduction:Any organization whether big or small, private or public need different types of information are to know its popularity. I have gathered secondary data and primary data and collected information from the combination of these two data.

Primary data: I have taken great care while collecting primary data to answer that it is relevant, accurate, current and unbiased. I have taken a sample of 50 people. I have visited them personally to get data. Secondary data: Secondary data consist of information that already exists somewhere, having been collected for another purpose. I have gathered secondary data from website of different operators, different magazines, newspapers and libraries.

Sample size: I have taken sample size of 50 respondents. Because the population is too large so it is difficult to survey.

4.3 LIMITATIONS
I am a human hang, so there is some limitation of the human hangs which is reflected in this research. The following are the limitation of this research study. 1) The sample size of 50 might not represent the perception of whole population, as the sample size is too small for total population of Ahmedabad city. 2) The opinion expressed by the respondents may be biased. 3) The attitude of the research might be biased.

4) One of the most influencing and most critical limitations is that I am not trained for the research study and this is my first study. I tried hard to come at conclusion, but there is lack of expertise. 5) Another limitation is that there is lack of time. If I give more time then studies will be more effective. There are some limitations of this study. But in spite of their limitation I worked with the enthusiasm. And I tried to give the best results to the research of this report.

SWOT ANALYSIS

SWOT analysis is the analysis of the internal and external factors, which have impact on the survival of any organization. Now lets make SWOT analysis for reliance Life Insurance Company Limited.

STRENGTHS:

1) Reliance Life Insurance Company Limited is the part of the Reliance Capital.

2) The brand name is enough to sell the products easily. by the government. Led to an improvement in market securities.

3) Private placement of Rs. 10,000 crs worth of securities with RBI

4) Strong liquidity from FII was the major reason for the up move. 5) Range of products 6) Reliance has a long and strong history of solvency, financial stability.

WEAKNESSES:
1) Newly established company, so people seems it risky. 2) Lack of staff. 3) Lack of advertisement, so most of the customers are not aware of the Reliance Life Insurance.

OPPORTUNITY:

1) There is a vast untapped market in India. The life insurance penetration in India is approximately 2.5%. So it has large potential.

2) Intention of traditional products is to encourage long term, regular and disciplined savings to systematically build up a target fund.

3) The average insurance premium being collected by the company has been growing exponentially year on year.

THREATS:
1) The main threat is from the other players who have grabbed approximately 15% of the market share. 2) As the government has scrapped the rebate on the life insurance premium, the people who used to invest in life insurance for the sole motive of tax benefit may turn to other instruments.

FINANCE DEPARTMENT

FUND PERFORMANCE:There are four fund options, which Reliance Life Insurance Company Limited has offered, which are as follows:

1) Capital Secure Fund:This fund is for Reliance Golden Years Plan, and Reliance Market Return Plan. In line with the objective of protecting the capital against any erosion, 61.4% of the funds were invested in short-term Government Securities (Gilts) and to meet liquidity requirement higher about 40% of funds are kept in short term bank deposit.

2) Balanced Fund:This fund is for Reliance Golden Years Plan, and Reliance Market return plan. To take advantage of the bullish trend in the equity market, the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund. Bank deposits were maintained only for the purpose of liquidity management. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low.

3) Growth Fund:-

This fund is for Reliance Golden Years Plan, and Reliance Market return plan.

This fund is for Reliance Market Return Plan. In line with the stated asset allocation pattern and their view of the market, the entire corpus of the fund was invested in equities.

4) Equity Fund:-

To take advantage of the bullish trend in the equity market, the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low.

CONCUSION

Conclusion

After the deep study of insurance sector of India, I can tell that this is the sector, which has most business opportunities in india.

Insurance industry is one of the fastest sectors in India. Insurance sector has been growing by 25% to 30% and it is expected to increase by 50% in coming 5 years. After the opening up of the insurance sector, it has become much competitive and insurance awareness among people has increased.

As far as the comparison of Reliance Life Insurance and other players is concerned, there are both positive as well as negative impacts on both the sides. For Reliance Life Insurance, the negative aspect is that its market share is low. For private players the negative aspect is that they have to fight with the public sector giant which is established player with a high brand value. But the positive impact is that the life insurance awareness has increased and the business of Reliance Life Insurance has increased.

BIBLIOGRAPHY AND REFERENCES

 www.reliancelife.com www.indiainfoline.com www.bimaonline.com www.google.com Life Time Magazine of Reliance Life Insurance Net Bios Computer Academys Life Insurance Book Broachers of Reliance Life Insurance