SUMMER TRAINING PROJECT REPORT ON

“A StudyOn Customer Perception Trends And

Backwards Bending Of ULIPS at Reliance Life
Insurance”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE

AWARD OF THE DEGREE OF BACHELOR OF
COMMERCE
2016-19

UNDER THE GUIDANCE SUBMITTED BY:

Ms. NEETU POOJA NEGI
FACULTY(MANAGEMENT) 52655101716
BBA(G)

Mahavir Swami Institute of Technology

Near O.P Jindal University, Jagdishpur Village, Sonipat
Haryana 131030
 DECLARATION

This is to certify that I have completed the Summer Training Project titled “A Study On
Customer Perception Trends And Backwards Bending Of ULIPS at Reliance Life
Insurance ” Which is submitted by me in partial fulfilment of the requirement for the award of
degree BBA(G) to GGSIP UNIVERSITY, DWARKA,DELHI comprises only my original
work and due acknowledgement has been made in the text to all other material used.

DATE: NAME OF STUDENT: POOJA NEGI

 CERTIFICATE FROM GUIDE

This is to certify that the project titled “A Study On Customer Perception Trends And
Backwards Bending Of ULIPS at Reliance Life Insurance” is an academic work done
by “POOJA NEGI” submitted in the partial fulfillment of the requirement for the award
of the Degree of BBA(G) from Mahavir Swami Institute of Technology (Affiliated to
G.G.S.I.P. University), New Delhi under my guidance and direction. To the best of my
knowledge and belief the data and information presented by him/ her in the project has not
been submitted earlier.

DATE: SUPERVISOR SIGNATURE

 ACKNOWLEDGEMENTS

The present work is an effort to throw some light on “A Study On Customer Perception

Trends And Backwards Bending Of ULIPS at Reliance Life Insurance”. The work would

not have been possible to come to the present shape without the able guidance, supervision

and help to me by number of people.

I first would like to thank Ms Neetu (Faculty Mvsit, New Delhi) for their kind support

because of which I was able to complete my thesis project on time.

I convey my heartfelt affection to all those people who helped and supported me during the

course, for completion of my thesis.

POOJA NEGI
EXECUTIVE SUMMARY
The health care system in India is characterized by multiple systems of medicine, mixed
ownership patterns and different kinds of delivery structures. Public sector ownership is
divided between central and state governments, municipal and Panchayat local
governments. Public health facilities include teaching hospitals, secondary level
hospitals, first-level referral hospitals (CHCs or rural hospitals), dispensaries; primary
health centres (PHCs), sub-centres, and health posts. Also included are public facilities
for selected occupational groups like organized work force (ESI), defence, government
employees (CGHS), railways, post and telegraph and mines among others. The private
sector (for profit and not for profit) is the dominant sector with 50 per cent of people
seeking indoor care and around 60 to 70 per cent of those seeking ambulatory care (or
outpatient care) from private health facilities. While India has made significant gains in
terms of health indicators - demographic, infrastructural and epidemiological (See
Tables 1 and 2), it continues to grapple with newer challenges. Not only have
communicable diseases persisted over time but some of them like malaria have also
developed insecticide-resistant vectors while others like tuberculosis are becoming
increasingly drug resistant. HIV / AIDS has of late assumed extremely virulent
proportions. The 1990s have also seen an increase in mortality on account of non-
communicable diseases arising as a result of lifestyle changes. The country is now in
the midst of a dual disease burden of communicable and noncommunicable diseases.
This is coupled with spiralling health costs, high financial burden on the poor and
erosion in their incomes. Around 24% of all people hospitalized in India in a single
year fall below the poverty line due to hospitalization (World Bank, 2007). An analysis
of financing of hospitalization shows that large proportion of people; especially those in
the bottom fourincome quintiles borrow money or sell assets to pay for hospitalization
(World Bank, 2007) This situation exists in a scenario where health care is financed
through general tax revenue, community financing, out of pocket payment and social
and private health insurance schemes. India spends about 4.9% of GDP on health
(WHR, 2007). The per capita total expenditure on health in India is US$ 23, of which
the per capita Government expenditure on health is US$ 4. Hence, it is seen that the
total health expenditure is around 5% of GDP, with breakdown of public expenditure
(0.9%); private expenditure (4.0%). The private expenditure can be further classified as
out-of-pocket (OOP) expenditure (3.6%) and employees/community financing (0.4%).
It is thus evident that public health investment has been comparatively low. In fact as a
percentage of GDP it has declined from 1.3% in 1990 to 0.9% as at present.
Furthermore, the central budgetary allocation for health (as a percentage of the total
Central budget) has been stagnant at 1.3% while in the states it has declined from 7.0%
to 5.5%.
India has made tremendous progress in the field of healthcare over the last few decades.
Several nagging problems have been put to rest and company have eradicated some of
the killer epidemics (Smallpox, for example). Research in the field of medicine has also
been improving, to be in tandem with the developments taking place elsewhere in the
globe. Healthcare delivery to the common man, however, has remained a highly
debated issue; and there are several millions of people who remain out of access to
even the basic amenities as regards personal care and hygiene. One of the reasons
assigned for such an unfortunate situation is the vast geographical spread of the
population that remains out of reach for regular medical facilities. For an economy that
is growing at a faster rate than most developed nations, there is an urgent need for
overcoming such irritants. Another oft-quoted reason for such a situation is the poverty
that is the bane of several of these masses. The total percentage of the Indian population
that is covered under the umbrella of any form of healthcare protection is pathetically
low. While the intention is not to parade insurance as a panacea for all the ills of the
society, by improving the numbers of health insurance penetration among a larger
section of people who can afford it; we will be creating a platform for the state to
concentrate on the less-privileged sections. Unfortunately, health insurance as a viable
alternative has not been able to make giant strides of progress, although it has been
growing, of late. A strong factor for the poor performance of health insurance
historically has been the moral hazard associated with it. Because of the poor awareness
levels about insurance even among the educated elite, exclusive risk coverage schemes
have not gained popularity in the Indian domain. Having paid the premium for a certain
period, the policyholder imagines an inherent right in the enforcement of a claim. In
several instances, he is aided in the process by service providers reportedly; and the
entire episode results in a huge claims ratio for the insurers that puts them on the back
foot. There is need for all the stakeholders to make the insured understand the basic
elements of the insurance coverage. Some areas that insurers on their part may work on
are widening the coverage of the policies – perhaps encouraging preventive care among
the insured, for one. It is also essential that all the stakeholders join shoulders to take
the cause further and ensure that health insurance in India reaches world-class
standards.

With a view to promoting health insurance in the country and looking for possible solutions
to bring in as many people as possible into the insurance net, the IRDA has, over the last few
years, gave special thrust to addressing various issues concerning health insurance. These
initiatives not only develop health insurance in the country but also address the concerns of
the policyholders of health insurance. The grievance redressal system set up by the Authority
enables a detailed analysis of policyholder grievances and health insurance stands out as a
major area of concern from the customer viewpoint. It was in this backdrop that the IRDA set
up The National Health Insurance Working Group towards the end of 2003. This provided a
platform for stakeholders of the health insurance industry to work together to suggest
solutions to various relevant issues. Some of the Working Group’s recommendations were
implemented and some are under examination.
 TABLE OF CONTENTS
PAGE NO
CHAPTER – 1: INTRODUCTION 1-12

1.1 Introduction 2-5

1.2 key Innovation & variety of 6-7

Products
1.3 Distribution a paradigm Shift 7-9
1.4 Reseach Methadalogy 10-12
1.4.1 Research objective
1.4.2 Research Design
1.4.3 Sample Design
1.4.4 Limitation of the research

CHAPTER – 2: COMPANY PROFILE 13-25

2.1 Profile of the organization 14-16
2.2 Leader ship team& 17-20
Board of director
2.3 Product 21-25

CHAPTER – 3: CONCEPTUAL DISCUSSION: BENDING OF 26-43

ULIPS AT RELIANCE LIFE INSURANCE
3.1 Unit linked insurance 27-36
Policies (ULIPS)
3.2 Highlights of future 37-40
Plans
3.3 Performance Record 41-42
3.4 Charges is concern 42-43

CHAPTER – 4: FINDINGS & DATA ANALYSIS & INTERPRETATION 44-57

 4.1 Findings of the Research

CHAPTER – 5: RECOMMENDATIONS & CONCLUSION 58-

60

ANNEXURES

BIBLIOGRAPHY
 CHAPTER-1

INTRODUCTION

1
 INDUSTRY PROFILE: LIFE INSURANCE

1.1 INTRODUCTION
Insurance is a social device where uncertain risks of individuals may be combined in a group and
thus made more certain – small periodic contribution by the individuals provide a fund, out of
which those who suffer losses may be reimbursed. In addition to being a means to protect
oneself, the Insurance Industry is an effective conduit for the savings of people to be channeled
towards economic growth. In India, the Insurance Industry is more than 150 years old. It was
monopolized by two Public Sector Undertakings in their respective fields of Life and General
Insurance.

Insurance plays a very important role in the day-to-day activities of the common man, business
houses, industries, agriculturists and other service providers. Insurance not only provides
protection for individual and industry through risk coverage; it also mobilizes funds for
economic activity and encourages savings. Thus an insurance cover is considered an important
tool for economic stability. The insurance industry is a key sector in the economy of any country.

The liberalization of the financial sectors was started in 1991 and carried forward by successive
governments. These reforms were carried out in a phased manner and affected the entire
financial sector. The insurance sector had been left out of this reform process for a very long
time. The passage of the IRDA bill in December 1999 has paved the way for the entry of private
players into this long neglected aspect of the Indian economy. However, the opening up of this
sector does not mean that its character will undergo a sea change. The public sector behemoths
will continue to enjoy a huge market share. It is up to the new players to device innovative
strategies to both grab business from the existing companies as well as expand the size of their
pie. The new entrants will look for new channels of distribution for their products. Banks will
play a very important part as they likely to act as interfaces between the insurance companies and
their prospective customers. The main benefits of this new competitive environment will be to
the consumer, who till now, has had to put up with shoddy products and even shoddier service.

2
The report gives a brief background of the sector and proceeds to highlight the shortcomings of
the existing setup and players. The benefits of a liberalized sector are enumerated. The report
also tried to identify the market potential for insurance products and the strategies that can be
employed to exploit the same.

Despite innumerable delays the sector has finally opened up for private competition. The threat
of private players shaking and giving the run for incremental market share for the Public Sector
mammoths has been overplayed. The number of potential buyers of insurance is certainly
attractive but much of this population might not be accessible. New insurers must segment the
market carefully to arrive at the appropriate products and pricing. Since distribution will be a key
determinant of success for all insurance companies regardless of age or ownership; a total change
is expected in the distribution network. As the product move towards the mature stages of
communization (increased awareness and popularity) they could then a host of new channels like
grocery stores, direct mails. Regulators must formulate strong and fair guidelines and ensure that
old and new players are subject to the same rules and at the same time the government should
ensure that the IRDA (Insurance Regulatory and Development Authority of India) does not
become yet another toothless tiger like CEA or TRAI.

INSURANCE – ON THRESHOLD
The liberalization of the Indian insurance sector has been the subject of much heated debate for
some years. The policy makers where in the catch 22 situation wherein for one they wanted
competition, development and growth of this insurance sector which is extremely essential for
channeling the investments in to the infrastructure sector. At the other end the policy makers had
the fears that the insurance premium which are substantial, would seep out of the country; and
wanted to have a cautious approach of opening for foreign participation in the sector.
As one of the rare occurrences the entire debate was put on the back burner and the IRDA saw
the day of the light thanks to the maturing polity emerging consensus among factions of different
political parties. Though some changes and some restrictive clauses as regards to the foreign
participation were included the IRDA has opened the doors for the private entry into insurance.

3
Whether the insurer is old or new, private or public, expanding the market will present multitude
of challenges and opportunities. But the key issues, possible trends, opportunities and challenges
that insurance sector will have still remain under the realms of the possibilities and speculation.
What is the likely impact of opening up India’s insurance sector?

BROADENING OF BENEFITS
The large scale of operations, public sector bureaucracies and cumbersome procedures hamper
nationalized insurers. Therefore, potential private entrants expect to score in the areas of
customer service, speed and flexibility. They point out that their entry will mean better products
and choice for the consumer. The critics counter that the benefit will be slim, because new
players will concentrate on affluent, urban customers as foreign banks did until recently. This
seems to be a logical strategy. Start-up costs-such as those of setting up a conventional
distribution network are large and high-end niches offer better returns. However, the middle-
market segment too has great potential. Since insurance is a volumes game. Therefore, private
insurers would be best served by a middle-market approach, targeting customer segments that are
currently untapped.

UNREALISTIC - FEARS
An often-voiced concern is that private players, especially foreign ones, will swamp the market,
grabbing a large share. A similar threat was overplayed in the case of basic telephone services
and when the private players started their operations the dominance and might of DoT has
remain unaltered. This hypothesis that the private players would swamp the market has been
disproved in many emerging markets worldwide not only in case of the insurance but in
numerous different sectors (Power, Energy, Telecom, Insurance etc.).
Yet, multinational insurers are keenly interested in emerging insurance because their home
markets are saturated while emerging countries; like India have low insurance penetrations and
high growth rates. International insurers often derive a significant part of their business from
multinational operations. As early as 1994, many of the UK’s largest life and general insurers
derived 40% to 60% of their total premium from outside their home markets. Though the global
operations of the multinational insurers have an immense impact on their typically foreign
insurers take only a small share of an individual country’s market. For example in Taiwan the

4
foreign companies took only a 3% share even seven years after opening up while in Korea, their
share was barely 1% after 20 years. In India, therefore, the new entrants would face the challenge
of playing within a small share of a large and growing market which could be possibly profitable.

UNTAPPED OPPORTUNITIES
There is no doubt that the potential market for the buyers of insurance is significant in India and
offers a great scope of growth. First, while estimating the potential of the Indian insurance
market we often tempt to look at it from the perspective of macro-economic variables such as the
ratio of premium to GDP which is indeed comparatively low in India. For example, India’s life
insurance premium as a percentage of GDP is 1.3% to 1.5% against 5.2% in the US, 6.5% in the
UK or 8% in South Korea. But the fact is that; the large part of the India’s, (the number of
potential buyers of insurance) is certainly attractive. However, this ignores the difficulties of
approaching this population. New entrants in other mass industries such as consumer products or
retail banking have discovered this after suffering heavy losses. Much of the demand may not be
accessible because of poor distribution, large distances or high costs relative to returns.

Secondly most new entrants have a tendency to target the business of existing companies rather
than expanding the market, this is myopic. This not only leads to intense competition for the new
players but also much of their effort is spent on trying to capture existing customers by offering
better service or other advantages. Hence, the benefits of this strategy are likely to be limited.
For example, 50% of the current demand for general insurance comes from the corporate
segment. The corporate are likely to shop around for the best rates, products and service.
Nevertheless, the corporate segment, as a whole will not be a big growth area for new entrants.
This is because penetration is already good, companies receive good service because of their size
and rates are tariff-governed. In both volumes and profitability therefore, the scope for expansion
is modest. A better approach may be to examine specific niches where demand can be met or
stimulated.

5
1.2 KEY - INNOVATION & VARIETY OF PRODUCTS
The new entrants would be best served by micro-level two pronged strategies. First, is to
introduce innovative products offering a right mix of flexibility/risk/return depending which will
suit the appetite of the customers and the secondly they would target specific niches, which are
poorly served or are not served at all

The first prong of a new insurer’s strategy could be to stimulate demand in areas that are
currently not served at all. For example, Indian general insurance focuses on the manufacturing
segment. However, the services sector is taking a large and growing share of India’s GDP. This
offers immense opportunities for expansion opportunities. For example, revenue from remote
processing activities in information technology is estimated at US $50 billion in the next ten
years. Insurers could respond with various liability covers.

Being the agrarian economy again there are immense opportunities for the new entrants to
provide the liability and risks associated in this sector like weather insurance, rainfall insurance,
cyclone insurance, crop insurance etc.

Next, the financial sector is aggressively targeting retail investors. Housing finance, auto finance,
credit cards and consumer loans all offer an opportunity for insurance companies to introduce
new products like creditor insurance etc. Similarly, organized sector sale of TVs, refrigerators,
washing machines and audio systems in 1998 was around Rs.110 billion. Only a negligible
portion of these purchases was insured. Potential buyers for most of this insurance lie in the
middle class. Existing players can also profitably exploit these areas.

In case there are products, which are not serving adequately new products many of them, which
are already prevalent in different markets can be customized to the Indian markets and used to
expand the markets. For example life insurance products provide a good example. Life Insurance
products have to compete with savings and mutual funds hence should offer various dimensions
of risk/return/flexibility so they can be linked to stock market indices, inflation etc. making them
more competitive and appropriate risk/return appetite for different investors at present there are
no such products. Similar problems apply to pensions. For instance, pure protection products like

6
term assurance account for up to 20% of policies sold in developed countries. In India, the figure
is less than one percent because policies are inflexible. They compete with investment and
savings options like mutual funds. It is imperative that they should offer comparable returns and
flexibility and there is immense scope of developing pure insurance products with flexibility.

The lack of a comprehensive social security system combined with a willingness to save means
that Indian demand for pension products will be large. However, current penetration is poor.
Making pension products into attractive saving instruments would require only simple
innovations already prevalent in other markets. For example, their returns might be tied to index-
linked funds or a specific basket of equities. Buyers could be allowed to switch funds before the
annuities begin and to invest different amounts at different times

Health insurance is another segment with great potential because existing Indian products are
insufficient. Till now, LIC’s Mediclaim scheme covered only 2.50 million people. Indian
products do not cover disability arising out of illness or disability for over 100 weeks due to
accident. Neither do they cover a potential loss of earnings through disability

1.3 DISTRIBUTION – A PARADIGM SHIFT

Since distribution will be a key determinant of success for all insurance companies regardless of
age or ownership. The nationalized insurers currently have an advantage because of their large
reach and presence. New entrants cannot and does not expect to supplant or duplicate such a
network. Building a distribution network is expensive and time consuming. Yet, if insurers are to
take advantage of India’s large population and reach a profitable mass of customers, new
distribution avenues and alliances will be imperative. This is also true for the nationalized
corporations, which must find fresh avenues to reach existing and new customers. There would
be substantial shifts in the distribution of insurance in India. Many of these changes will echo
international trends. Worldwide, insurance products move along a continuum from pure service
products to pure commodity products then they could be sold through the medical shops,
groceries, novelty stores etc. Once communization, popularity and awareness of the products are

7
attained then the products can move to remote channels such as telephone or direct mail. In UK
for example, retailer Marks & Spencer now sells insurance products. At this point, buyers look
for low price. Brand loyalty could shift from the insurer to the seller. Recognizing this trend, the
financial services industry worldwide has successfully used remote distribution channels such as
the telephone or the Internet to reach more customers, cut out intermediaries, bring down
overheads and increase profitability.

INSURANCE AGENCY
Agents form the lifeline of life insurance distribution system in India. Agents are essential for
soliciting business because of the following reasons:
a) Clarification of an idea to the proposer
b) Assignment of needs of the potential insured
c) Personalised Guidance to the potential insured
d) Assessment of risk for the insurer

Who are Agents?

Agents in a legal sense means a person who is employed to perform and act on half of others
(principal) for a price called as commission. Agents in life insurance context means the person
holding a valid license from Insurance Regulatory Development Authority (IRDA) issued in
accordance with the IRDA Regulations.
Minimum conditions to be fulfilled to become an agent (As per IRDA Regulations)
Qualifications
Qualifications of the Applicant: The applicant shall possess the minimum qualification of a
pass in 12th Standard or equivalent examination conducted by any recognised Board/Institution,
where the applicant resides in a place with a population of five thousand or more as per the last
census, should have passed in 10th Standard or equivalent examination from a recognised
Board/Institution if the applicant resides in any other place.

8
Practical Training:
(1) The applicant shall have completed from an approved institution, at least, one hundred
hours' practical training in life or general insurance business, as the case may be, which
may be spread over three to four weeks, where such applicant is seeking license for the
first time to act as insurance agent.
(2) Provided that the applicant shall have completed from an approved institution, at least,
one hundred fifty hours' practical training in life and general insurance business, which
may be spread over six to eight weeks, where such applicant is seeking license for the
first time to act as a composite insurance agent.
2. Where the applicant, referred to under sub-regulation (1), is:
(i) An Associate/Fellow' of the Insurance Institute of India, Mumbai;
(ii) An Associate/Fellow of the Institute of Chartered Accountants of India, New Delhi;
(i) An Associate/fellow of the Institute of Costs and Works Accountants of India, Kolkata.
(ii) An Associate/Fellow of the Institute of Company Secretaries of India, New Delhi.
(iii) An Associate/Fellow of the Actuarial Society of India, Mumbai;
(vi) A Master of Business Administration of any Institution/University recognised by any State
Government or the Central Government; or
(vii) Possessing any professional qualification in marketing from any Institution/University
recognized by any State Government or the Central Government:
He shall have completed, at least, fifty hours' practical training from an approved institution.
Provided that such applicant shall have completed from an approved institution, at least, seventy
hours' practical training in life and general insurance business, where such applicant is seeking
license for the first time to act as a composite insurance agent.
3. An applicant, who has been granted a license after the commencement of these regulations,
before seeking renewal of license to act as an insurance agent, shall have completed, at least
twenty-five hours' practical training in life or general insurance business, as the case may be,
from an approved institution.
Provided that such applicant before seeking renewal of license to act as a composite insurance
agent shall have completed from an approved institution, at least, fifty hours' practical training in
life and general insurance business.

9
1.4 RESEARCH METHODOLOGY

1.4.1 RESEARCH OBJECTIVES

i. To study examine the potential growth of the ULIP plan of the Reliance lie Insurance...
ii. To analyze what are the region of backwardness for the ULIP plan.

1.4.2 RESERCH DESIGN

Data has been collected through one to one interaction and discussion with various people who
are involved in the business of insurance as Sales manager, Life Advisors, Marketing Manager
Customers and others. Newspapers, Internet, Magazines and Journals would provide ample
material about latest trends and practices in insurance industry.

Kotak organizes various outdoor activities to boost its business and brand. Interaction with
customers during such outdoor activities would enable to understand the success ratio of such
kind of outdoor activities. Various products of the company would be discussed with respect to
their benefits and advantages. Various insurance players would be compared with respect to their
market share and products that they offer.

DATA SOURCE

POPULATION:-
In statistics, a statistical population is a set of entities concerning which statistical inferences are
to be drawn, often based on a random sample taken from the population. For example, if we were
interested in generalizations about crows, then we would describe the set of crows that is of
interest. Notice that if we choose a population like all crows, we will be limited to observing
crows that exist now or will exist in the future.

10
1.4.3 SAMPLE DESIGN
Sample Size:-

The number of population items selected when a sample is drawn from a population. For causal-
comparative, correlation research 30 in each group, and 15 in experimental research are
generally recommended as minimum sample size.

TYPES OF DATA USED:-

Primary Data:-

It is collected directly from people and organization via questionnaires or surveys before being
analyzed to reach conclusions concerning the issues covered in the questionnaire or survey.

Various Sources

 QUESTIONNAIRE
 PRODUCT PAMPHLET
 PERSONAL OBSERVATION

Secondary Data:-

Secondary data - collected by are others to be "re-used" by the researcher.

Various Sources

 NEWSPAPERS
 INTERNET
 PROSPECTOUS

11
 Ways of Using Secondary Sources
o Design Phase - definitions & sampling frames, question wording
o Supplement to Main Research
o Re-Enforcement &/Or Comparison
o Main Mode of Research
o Direct Data Collection Impossible
o Or Costly & Time Consuming
o Exploratory phase-getting ideas

How to Search & Use Secondary Sources?

o Documents - Bibliographic Skills, Use of Keywords, Boolean Operators
o Published Statistics
 Guide to Official Statistics
 Digests & Abstracts
 Primary Publication

1.4.4. LIMITATIONS

1. The sample size was very small.

2. There is bias on the part of the respondents.
3. There is lack of information as everyone is not ready to share their personal
matters with everybody. Some people resist the answers.
4. It is impossible to cater every class of the society.

12
 CHAPTER-2
COMPANY PROFILE

13
 COMPANY PROFILE: RELIANCE LIFE INSURANCE

2.1. PROFILE OF THE ORGANIZATION

Reliance Life Insurance offers you products that fulfill your savings and protection needs. Our
aim is to emerge as a transnational Life Insurer of global scale and standard.

Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of 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 - Anil Dhirubhai Ambani Group also has presence in Communications, Energy, Natural
Resources, Media, Entertainment, Healthcare and Infrastructure.

Founder
Few men in history have made as dramatic a contribution to their country’s economic fortunes as
did the founder of Reliance, Shri. Dhirubhai H Ambani. Fewer still have left behind a legacy that
is more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the true genius of
Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of
men, the architect of India’s capital markets, the champion of shareholder interest.

14
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 patronised by a
small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai
managed to convince a large number of first-time retail investors to participate in the unfolding
Reliance story and put their hard-earned money in the 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’s 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.

Vision & Mission

VISION
Empowering everyone live their dreams.

MISSION
Create unmatched value for everyone through dependable, effective, transparent and profitable
life insurance and pension plans
GOAL

15
  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

ACHIVEMENTS
 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- Ceritificate of Merit in the
Financial Services category by Council for Fair Business Practices (CFBP).

16
2.2 LEADERSHIP TEAM AND BOARD OF DIRECTORS
Gautam Doshi, Director
Gautam is the Group Managing Director of Reliance Anil Dhirubhai Ambani Group and Director
of Reliance Life Insurance Company Limited. In his long and illustrious career spanning 30
years, Gautam has held key positions in various organisations such as M/s. Bansi S. Mehta, RSM
& Co. and Ambit Corporate Finance Pvt. Ltd. Presently, as a Board member of various reputed
public limited companies, Gautam continues to power the industry with his profound knowledge
and expertise.

Gautam, a qualified Chartered Accountant, has served as the Chairman of the Institute of
Chartered Accountants of India for the year 1982–83. He was also elected to the Council of the
Institute of Chartered Accountants of India for two consecutive terms spanning over 1992 to
1998.

Satya Pal Talwar, Director

Satya Pal is the Director of Reliance Life Insurance Company Limited. He holds an experience
of more than 35 years in operations and policy formulation.

Through his distinguished service in the financial industry, Satya Pal has served as the
‘Chairman and Managing Director’ of renowned organisations such as Bank of Baroda, Union
Bank of India and Oriental Bank of Commerce. His in-depth knowledge of the sector has seen
him rise quickly into pivotal positions at advisory and board levels in Indian and as well Global
organisations such as SEBI, IDBI and MasterCard International. He has also held the coveted
position of Deputy Governor of RBI from 1994 to 2001.

Satya Pal holds a degree in Law. He is a Certified Associate of the Indian Institute of Bankers
and a member of the Indian Council of Arbitration.

17
Saumen Ghosh, Group President
Saumen is currently the Group President of Reliance Capital Limited.
Saumen has worked in the UK for one of the leading Chartered Accountancy firms and then
moved to Australia to join a subsidiary of the Allianz Group where he held various senior
positions in the finance and international division. In his immediate past assignment, before
joining Reliance Capital Limited, Saumen was responsible for the overall Allianz operations in
India and Middle East. Saumen is a qualified Chartered Accountant and is a member of the
Institute of Chartered Accountant in England & Wales and Australia.

P Nandagopal, Chief Executive Officer

P Nandagopal joined Reliance Life Insurance Company Limited as CEO on October 4, 2005—
the day the share holdings of AMP Sanmar were transferred to Reliance Capital Group.
Nandagopal’s career in the financial services industry spans over two glorious decades. He
started his career with Andhra Bank followed by other reputed firms such as New India
Assurance and GIC Asset Management, where he expertly managed various assignments in
finance, underwriting, claims and mutual fund marketing. In 1999, he joined Birla Sun Life
Insurance as one of the founder-members, where he successfully managed the Alternate
Channels, Group Insurance and Pensions businesses.

Nandagopal’s passion for finance motivated him to write a book titled ‘Investor’s Handbook’.
Amazed by the simple lessons and tips the book offered, finance professionals promptly made
the book a bestseller! It is today a prescribed reference book for the AMFI exams. P Nandagopal
is an MBA – Finance and Marketing. He is also an Associate Company Secretary and a Fellow of
the Insurance Institute of India.

Malay Ghosh – Deputy Chief Executive Officer

Malay leads all Sales & Distribution activities at Reliance Life Insurance Company Limited. His
key focus is on rapid expansion of all channels and accelerating the company’s growth trajectory.
Malay has over 24 years of work experience in the insurance industry. He has worked for 17
years with LIC across various functions and for 7 years with Bajaj Allianz Life Insurance where
he was last designated Head of Sales.

18
Maneesha Thakur, Chief Human Resources Officer
Maneesha in her role as the Chief Human Resource Officer at Reliance Life Insurance Company
Limited, has developed a performance driven and employee centric culture. She has been at the
forefront of the organization growth by facilitating talent acquisition and management.
Maneesha in her career span of 15 years has worked with companies like SHCIL, ALLTEL,
Transamerica, ICICI Bank and VSNL.

In addition to an MA in English Literature, Maneesha holds a Post Graduate Diploma in

Personnel Management & Industrial Relations from XLRI, Jamshedpur.

Rajesh Bahl, Sr VP -Legal & Chief Financial Officer

Rajesh, in the capacity of the Sr Vice President Legal & Chief Financial Officer, heads the
overall Finance and Accounts operations at Reliance Life Insurance. Rajesh has 14 years of
experience in the field of financial and strategic planning, business controlling, audit and
compliance. He began his career with AF Fergusson & Co. He moved on to lend his financial
expertise to world-renowned companies such as Ericsson, Pepsi,Modi Xerox, and Tata AIG Life
Insurance, where he was Chief Compliance Officer and Financial Controller. Rajesh is a
Commerce graduate from Delhi University and a qualified Chartered Accountant from the
Institute of Chartered Accountants of India.

Pournima Gupte, Appointed Actuary

Pournima is the Appointed Actuary at Reliance Life Insurance Company Limited where she has
the overall responsibility for statutory reporting, risk appetite, pricing, valuation, reinsurance,
etc. Prior to joining Reliance, Pournima served at Life Insurance Corporation of India for 20
long and rewarding years. Her stint with LIC included a four-year deputation at the London
branch, as Manager. She then moved on to be the Chief Manager – Actuarial, at Kotak Mahindra
Life Insurance Company and Associate Vice President – Actuarial at Bajaj Allianz Life Insurance
Company. Pournima is a graduate in Statistics and a Fellow of the Actuarial Society of India
(FASI).

19
C Mohan, Chief Technology Officer
Mohan is the Chief Technology Officer (CTO) of Reliance Life Insurance Company Limited and
he is responsible for Information Technology Strategy Formulation and Deployment.

Mohan has over 11+ years of IT Experience of which he spend more than 7+ years Executive
Management Experience in overseas. He worked with Cathay Pacific Airways and Computer
Sciences Corporation in AsiaPacific Role at Singapore before he joined Reliance Life. Mohan is
an Engineering Graduate and holds many International IT Certification like
MCSE,CCNA,CNE,CBCP,PMP etc.

R Rangarajan, Chief Investment Officer

Rangarajan is the Chief Investment Officer at Reliance Life Insurance Company Limited. He
alongwith his team, strives to give the best possible returns on investments to shareholders and
policyholders, keeping in mind their appetite for risk. Rangarajan draws on his in-depth
knowledge of investment and experience of 25 years to ensure that the goals of the organisation
are met—without any compromise on the benefits of the investors. Prior to being a part of
Reliance Life Insurance, Rangarajan worked with AMP Sanmar Life Insurance as Head –
Investments for three years. His earlier assignment was with a large Mutual Fund organization.
Rangarajan is a qualified Chartered Accountant.

S V Sunder Krishnan, Chief Risk Officer

Sunder is the Chief Risk officer for Reliance Life Insurance and is responsible for overseeing
Risk Management, Internal Audit and Compliance functions at Reliance Life Insurance. Sunder
came with 23 years of experience and knowledge in Internal Audits, Compliance, Assurance
Consulting and Risk Management. He has worked for various leading organizations such as DSP
Merrill Lynch, ING Vysya, Credit Lyonnais, Standard Chartered, Bank International Indonesia,
Ernst & Young and Delloitte at senior and middle management positions with exposure to
businesses and operations in more than 12 countries.

20
Sunder is a qualified FCA, CISA, and CCSA. He is also the President of Information Systems
Audit Control Association (ISACA-USA), Mumbai Chapter for the year 2007-08 and was a
member of the Board of Advisors to Bombay Chartered Accountants Society (BCA’S) for
Internal Audit studies for the year 2005-06.

Saroj K Panigrahi, Head – Legal, Compliance & Company Secretary

'Saroj K Panigrahi heads the Legal, Complaince and Company Secretarial function of Reliance
Life Insurance'. He is armed with twelve years of valuable experience in the Corporate Legal,
Commercial, Regulatory Compliance and Corporate Governance domains. Prior to joining
Reliance, he headed the Legal & IP department at Accenture’s India Outsourcing Business.
During his fulfilling tenure, he skilfully managed the Legal, Intellectual Property, Regulatory
Risk & Compliance aspects of several Fortune 500 companies. Prior to his assignment with
Accenture, Saroj was Associate Legal Counsel & Company Secretary at ING Vysya Life
Insurance and was also associated with ICRA, an associate of Moody’s Investors Inc. Saroj
holds a degree in Law. He is also a Fellow Company Secretary, a Chartered Secretary (UK) and a
Chartered Financial Analyst (CFA).

2.3 PRODUCT
Solutions for Individuals
Taking time out from your daily schedule to plan your future is a necessary task. You could do
with some help, but who can help you? Reliance Life Insurance is here with Solutions for
Individuals, a series of plans that will help you make wise investments, protect your family,
secure your child’s future and even chalk out a plan for your retirement. So what are you waiting
for? Invest in one of Reliance Solutions for Individuals and pave the way for a worry-free life!

Plans

21
Protection Plans
Protect your family even when you’re not around by investing in Reliance Protection Plans.
Choose a limited period plan or a lifetime protection plan depending on your needs..

Savings & Investment Plans

Reliance Savings & Investment Plans help you to set aside some money to achieve specific goals
in life, which means that you can enjoy life and provide for your family’s daily needs

Retirement Plans
Invest today in Reliance Retirement Plans and save money to enjoy life even after retirement.
You will never have to depend on another person or make any compromises to maintain your
current lifestyle... Read More

Child Plans
Save systematically and secure your child’s future needs by investing in Reliance Child Plans.
You can always be there for your child when he or she needs you... Read More

Solutions for Groups

As an employer, you believe in providing the best opportunities for your employees while
keeping the interests of the company in mind. How will you strike a balance between the two?

Reliance Life Insurance offers you a win-win solution with Solutions for Groups. Not only are
your employees covered for life from accidents and disablements, you can also efficiently
manage their future with gratuity and pension plans. So invest in Reliance Solutions for Groups
to give your employees a sense of belonging and feel at peace knowing that you have fulfilled
your obligation towards your corporate family.

Plans

22
Employers Liability Solutions
Freedom from forecasting and managing liability for employees Gratuity, Leave Encashment and
Pension.

Employee Protection Solutions

Have you always wanted to give your employees total cover from any accidents, disabilities or
untimely deaths? Invest in Reliance Employee Protection Solutions today and show your
employees that you care...

PERFORMANCE OF FUND

Fund Name NAV per Unit

AIP - Corporate Bond Fund 10.9276
AIP - Energy Fund 6.5916
AIP - Equity Fund 6.5024
AIP - Fund A 7.2133
AIP - Fund B 8.5596
AIP - Fund C 10.0164
AIP - Gilt Fund 10.8673
AIP - Infrastructure Fund 6.3132
AIP - Midcap Fund 6.0884
AIP - Money Market Fund 11.18
AIP - Pure Equity Fund 6.6239
GYP - Balanced Fund 13.0682
GYP - Capital Secure Fund 12.7161
GYP - Energy Fund 6.5916
GYP - Equity Fund 7.6305
GYP - Growth Fund 10.6565
GYP - Infrastructure Fund 6.3132
GYP - Midcap Fund 6.0884
GYP - Pure Equity Fund 6.6239
MGP - Fund D 9.4593
MGP - Fund E 9.0768
MGP - Fund F 8.8088
MGP - Return Shield Fund 10.9498
MRP - Balanced Fund 13.0616
MRP - Capital Secure Fund 12.6711

23
MRP - Energy Fund 6.5916
MRP - Equity Fund 15.405
MRP - Growth Fund 13.3938
MRP - Infrastructure Fund 6.3132
MRP - Midcap Fund 6.0884
MRP - Pure Equity Fund 6.6239
SCP - Energy Fund 6.5916
SCP - Equity Fund 4.9707
SCP - Fund G 9.091
SCP - Fund H 7.7787
SCP - Infrastructure Fund 6.3132
SCP - Midcap Fund 6.0884
SCP - Pure Equity Fund 6.6239
SCP - Return Shield Fund 10.3314
SIP - Corporate Bond Fund 10.0504
SIP - Energy Fund 7.0125
SIP - Equity Fund 6.7022
SIP - Gilt Fund 10.3608
SIP - Infrastructure Fund 6.5
SIP - Midcap Fund 5.8771
SIP - Money Market Fund 10.3382
SIP - Pure Equity Fund 7.3262
TIPS I - Pure Equity Fund 6.6239
TIPS I - Corporate Bond Fund 10.1709
TIPS I - Energy Fund 6.6871
TIPS I - Equity Fund 6.7108
TIPS I - Gilt Fund 10.3244
TIPS I - Infrastructure Fund 6.213
TIPS I - Midcap Fund 6.1374
TIPS I - Money Market Fund 10.5195
TIPS II - Corporate Bond Fund 10.1676
TIPS II - Energy Fund 6.6863
TIPS II - Equity Fund 6.7029
TIPS II - Gilt Fund 10.3274
TIPS II - Infrastructure Fund 6.2038
TIPS II - Midcap Fund 6.1504
TIPS II - Money Market Fund 10.5121
TIPS II - Pure Equity Fund 6.6239
W+HP - Infrastructure Fund 6.3132
W+HP - Corporate Bond Fund 10.2412
W+HP - Energy Fund 6.5916
W+HP - Equity Fund 5.4047
W+HP - Fund A 6.1398
W+HP - Fund B 7.5185
W+HP - Gilt Fund 10.373

24
W+HP - Midcap Fund 6.0884
W+HP - Money Market Fund 10.563
W+HP - Pure Equity Fund 6.6239

CHAPTER – 3

CONCEPTUAL DISCUSSION: BENDING OF

ULIPS AT RELIANCE LIFE INSURANCE

25
 CONCEPTUAL DISCUSSION: BENDING OF ULIPS AT
RELIANCE LIFE INURANCE

3.1 UNIT LINKED INSURANCE POLICIES (ULIPS)

Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in
terms of their structure and functioning. As is the case with mutual funds, investors in ULIPs is
allotted units by the insurance company and a net asset value (NAV) is declared for the same on
a daily basis.

Similarly ULIP investors have the option of investing across various schemes similar to the ones
found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to
name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance
component. However it should not be construed that barring the insurance element there is
nothing differentiating mutual funds from ULIPs.

How ULIPs can make you RICH!

Despite the seemingly comparable structures there are various factors wherein the two differ. In
this article we evaluate the two avenues on certain common parameters and find out how they
measure up.

1. Mode of investment/ investment amounts

Mutual fund investors have the option of either making lump sum investments or investing using
the systematic investment plan (SIP) route which entails commitments over longer time
horizons. The minimum investment amounts are laid out by the fund house.

26
ULIP investors also have the choice of investing in a lump sum (single premium) or using the
conventional route, i.e. making premium payments on an annual, half-yearly, quarterly or
monthly basis. In ULIPs, determining the premium paid is often the starting point for the
investment activity.

This is in stark contrast to conventional insurance plans where the sum assured is the starting
point and premiums to be paid are determined thereafter.
ULIP investors also have the flexibility to alter the premium amounts during the policy's tenure.
For example an individual with access to surplus funds can enhance the contribution thereby
ensuring that his surplus funds are gainfully invested; conversely an individual faced with a
liquidity crunch has the option of paying a lower amount (the difference being adjusted in the
accumulated value of his ULIP). The freedom to modify premium payments at one's convenience
clearly gives ULIP investors an edge over their mutual fund counterparts.

2. Expenses
In mutual fund investments, expenses charged for various activities like fund management, sales
and marketing, administration among others are subject to pre-determined upper limits as
prescribed by the Securities and Exchange Board of India.
For example equity-oriented funds can charge their investors a maximum of 2.5% per annum on
a recurring basis for all their expenses; any expense above the prescribed limit is borne by the
fund house and not the investors.

Similarly funds also charge their investors entry and exit loads (in most cases, either is
applicable). Entry loads are charged at the timing of making an investment while the exit load is
charged at the time of sale.

Insurance companies have a free hand in levying expenses on their ULIP products with no upper
limits being prescribed by the regulator, i.e. the Insurance Regulatory and Development
Authority. This explains the complex and at times 'unwieldy' expense structures on ULIP
offerings. The only restraint placed is that insurers are required to notify the regulator of all the
expenses that will be charged on their ULIP offerings.

27
Expenses can have far-reaching consequences on investors since higher expenses translate into
lower amounts being invested and a smaller corpus being accumulated.

ULIP-related expenses have been dealt with in detail in the article "Understanding ULIP
expenses".

3. Portfolio disclosure
Mutual fund houses are required to statutorily declare their portfolios on a quarterly basis, albeit
most fund houses do so on a monthly basis. Investors get the opportunity to see where their
monies are being invested and how they have been managed by studying the portfolio.

There is lack of consensus on whether ULIPs are required to disclose their portfolios. During our
interactions with leading insurers we came across divergent views on this issue.

While one school of thought believes that disclosing portfolios on a quarterly basis is mandatory,
the other believes that there is no legal obligation to do so and that insurers are required to
disclose their portfolios only on demand.

Some insurance companies do declare their portfolios on a monthly/quarterly basis. However the
lack of transparency in ULIP investments could be a cause for concern considering that the
amount invested in insurance policies is essentially meant to provide for contingencies and for
long-term needs like retirement; regular portfolio disclosures on the other hand can enable
investors to make timely investment decisions.

28
ULIPs vs. Mutual Funds
ULIPs Mutual Funds
Determined by the investorMinimum investment
and can be modified asamounts are determined by
Investment amounts well the fund house
No upper limits, expensesUpper limits for expenses
determined by thechargeable to investors have
Expenses insurance company been set by the regulator
Quarterly disclosures are
Portfolio disclosure Not mandatory* mandatory
Generally permitted forEntry/exit loads have to be
Modifying asset allocation free or at a nominal cost borne by the investor
Section 80C benefits areSection 80C benefits are
available on all ULIPavailable only on investments
Tax benefits investments in tax-saving funds

* There is lack of consensus on whether ULIPs are required to disclose their portfolios. While
some insurers claim that disclosing portfolios on a quarterly basis is mandatory, others state that
there is no legal obligation to do so.

4. Flexibility in altering the asset allocation

As was stated earlier, offerings in both the mutual funds segment and ULIPs segment are largely
comparable. For example plans that invest their entire corpus in equities (diversified equity
funds), a 60:40 allotment in equity and debt instruments (balanced funds) and those investing
only in debt instruments (debt funds) can be found in both ULIPs and mutual funds.

If a mutual fund investor in a diversified equity fund wishes to shift his corpus into a debt from
the same fund house, he could have to bear an exit load and/or entry load.

29
On the other hand most insurance companies permit their ULIP inventors to shift investments
across various plans/asset classes either at a nominal or no cost (usually, a couple of switches are
allowed free of charge every year and a cost has to be borne for additional switches).

Effectively the ULIP investor is given the option to invest across asset classes as per his
convenience in a cost-effective manner.

This can prove to be very useful for investors, for example in a bull market when the ULIP
investor's equity component has appreciated, he can book profits by simply transferring the
requisite amount to a debt-oriented plan.
5. Tax benefits
ULIP investments qualify for deductions under Section 80C of the Income Tax Act. This holds
good, irrespective of the nature of the plan chosen by the investor. On the other hand in the
mutual funds domain, only investments in tax-saving funds (also referred to as equity-linked
savings schemes) are eligible for Section 80C benefits.

Maturity proceeds from ULIPs are tax free. In case of equity-oriented funds (for example
diversified equity funds, balanced funds), if the investments are held for a period over 12
months, the gains are tax free; conversely investments sold within a 12-month period attract
short-term capital gains tax @ 10%.

Similarly, debt-oriented funds attract a long-term capital gains tax @ 10%, while a short-term
capital gain is taxed at the investor's marginal tax rate.

Despite the seemingly similar structures evidently both mutual funds and ULIPs have their
unique set of advantages to offer. As always, it is vital for investors to be aware of the nuances in
both offerings and make informed decisions.

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PERFORMANCE ANALYSIS

2003 2004 2005 2006 2007

40 151 466 622 972

Total Insurance Premium (Rs. Crore)

CAGR 122%
During the year, the Company has written 165,203 policies (2006 – 96,750 policies) of adjusted
first year premium (single premium weighted at 1/10th) of Rs. 572 crores (200– Rs. 367 crores),
representing a sum assured (excluding riders) of Rs. 20,163 crores (2006 – Rs. 8,631 crores).
a. Tied Agency: The Company believes that insurance is a long-term relationship it is building
with a client, his family, his business and his employees. With this in mind, they continue to

31
invest heavily in maintaining a well-recruited, professionally trained, and well monitored life
advisor force that is capable of providing the appropriate advice and recommend customised
solutions to consumers. During the year, in line with its aggressive growth strategy, the Company
doubled the life advisor force from 12,523
(2006) to 24,484 (31st March, 2007).the Company continued to maintain stringent standards for
the life advisors they partner with, requiring a depth of expertise and highly ethical behaviour. To
meet this objective, the Company invested heavily on training. Till 31st March 2007, the
Company has 70 trainers in its 32 Insurance Regulatory and Development Authority (IRDA)
certified training centres. The Company also continues to leverage from a vast network of IRDA
certified private training institutes, spread across the country. The Company is proud to mention
that 1 life advisor qualified for “Top of the Table” Honours; 14 life advisors qualified for “Court
of the Table” Honours and 142 life advisors qualified for the prestigious “Million Dollar Round
Table.” The company is also proud to mention that 138 Life Advisors have completed the
rigorous 51 Club Rounds, a benchmark performance measure set by Old Mutual in South Africa
that rewards consistent performance. Further, the Kontact and Konclave programme aimed at
rewarding and recognising top-performers is now the most coveted life advisors’ conventions.

32
COMPARISION OF DIFFERENT ULIP PLAN VIS –A VIS OF RELIANCE
INSURANCE

Aviva Life Insurance

Insurance Plans NAVs (Rs)

Aviva - EasyLife Plus Balanced Fund 28.95

Aviva - EasyLife Plus Growth Fund 20.79
Aviva - EasyLife Plus Protector Fund 11.59
Aviva - EasyLife Plus Unitised with Profit 13.21
Aviva - Freedom Life Balanced Fund 28.95
Aviva - Freedom Life Bond Fund 10.69
Aviva - Freedom Life Enhancer Fund 6.83
Aviva - Freedom Life Growth Fund 20.79
Aviva - Freedom Life Secure Fund 13.83
Aviva - Life Bond Balanced Fund 28.95
Aviva - Life Bond Bond Fund 32.12
Aviva - Life Bond Growth Fund 20.79
Aviva - Life Bond Index Fund 11.34
Aviva - Life Bond Plus Balanced Fund 28.95
Aviva - Life Bond Plus Growth Fund 20.79
Aviva - Life Bond Plus Secure Fund 13.83
Aviva - Life Bond Protector Fund 11.59
Aviva - Life Bond Secure Fund 33.51
Aviva - Life Bond Unitised with Profit Fund 13.21

Aviva Life Insurance has launched Dhan Vriddhi, a unit-linked investment plan (ULIP) with
guaranteed returns. The insurance company, meanwhile, is planning to scale up its presence in
the current calendar year in terms of branches and agent network.
Trying to break away from the clutter of ULIP products, Aviva Life Insurance, a joint venture
between Dabur and Aviva Plc, is trying to provide savings-cum-protection plan with guaranteed
returns. The policy promises addition of Rs 70 for every Rs 1000 sum assured after every
completed policy year and provides a 20% payout of the basic sum assured as a survival benefit
at regular five-year intervals till the policy matures, Aviva Life Insurance marketing director
Vivek Khanna said. The policy is applicable for people between 13 and 55 years and can be
bought for a term extending from 10 to 25 years. The maximum age at maturity is 70 years. The
minimum sum assured is Rs 50,000 and in multiples of Rs 10,000 thereafter. Commenting on the

33
insurance company’s expansion plans, Khanna said Aviva is now reaching out to smaller cities. It
at present has a 7,500-strong network of financial planners across the country and expects to
double it to 15,000 in the current calendar year. Khanna said in 2006, Aviva had increased its
business by 111% as compared with 105% growth rate achieved by other private life insurers.

Bajaj Allianz Life Insurance

Insurance Plans NAVs (Rs)

Bajaj Allianz - Balancer Fund 10.71

Bajaj Allianz - Balancer Pension Fund 10.97
Bajaj Allianz - Capital UnitGain
Accelerator Mid cap Fund 8.55
Bajaj Allianz - Capital UnitGain Bond Fund 11.57
Bajaj Allianz - Capital UnitGain Equity
Growth Fund 8.51
Bajaj Allianz - Capital UnitGain Equity
Index Fund II 9.37
Bajaj Allianz - Capital UnitGain Liquid
Fund 12.19
Bajaj Allianz - Century Plus Accelerator
Mid cap Fund 8.55
Bajaj Allianz - Century Plus Asset
Allocation Fund 8.48
Bajaj Allianz - Century Plus Bond Fund 11.57
Bajaj Allianz - Century Plus Equity Growth
Fund 8.51
Bajaj Allianz - Century Plus Equity Index
Fund II 9.37
Bajaj Allianz - Century Plus Liquid Fund 12.19
Bajaj Allianz - Family Gain Balanced Plus
Fund 14.26
Bajaj Allianz - Family Gain Debt Plus Fund 12.22
Bajaj Allianz - Family Gain Equity Index
Fund 17.35
Bajaj Allianz - Family Gain Pure Equity
Fund 10.77
Bajaj Allianz - Future Secure Accelerator
Mid cap Pension Fund 8.61

34
Bajaj Allianz - Future Secure Asset
Allocation Pension Fund 8.2

Here is an opportunity for all those who invest - for tax saving or even otherwise. You can invest
in Bajaj Allianz Life Insurance Co's Unit Linked Insurance Policies (ULIPs), save tax under 80C
and also get an opportunity to earn additional revenue of anything from Rs.1,000/- to
Rs.1,30,000/- per week at no extra cost. Yes, there is something that you would need to do. you
would need to be smart & not lose this wonderful opportunity. If you have the ability to work
smart, contact us. We are a team of professionals (engineers, IT professionals, lawyers,
businessmen, middleclass working people) based out of Mumbai. We are committed to those
who are ready to work hard and we stand committed to "turning people's dreams in to
REALITY"

3.2 HIGHLIGHTS OF FUTURE PLANS

 A high wealth creation tool offering more than 100 per cent premium allocation for
policy term of 10 years and above
 Among the lowest charges amongst the category
 Available for three terms also of 10, 15 and 20 years
 Offers the flexibility of unlimited top ups
 Zero surrender charges
 Option to increase or decrease premium on a regular basis.
 Offers advantage of additional rider benefits, UL waiver of premium benefit and UL
family income benefit, making it the best financial planning tool for your child's future.
 'Asset Allocation Fund', a new fund offering to hedge risks by shifting the funds from
equity to debt and debt to equity during adverse market conditions
 Continued participation in investment performance of the fund(s) even if you are not able
to pay three full years premium
 Flexibility of withdrawals (partial or full) at any time after three years

35
 Bharti AXA Life Insurance
Insurance Plans NAVs (Rs)

Bharti AXA Life - AspireLife - Grow money 7.97

Bharti AXA Life - AspireLife - Save`n`grow money 9.99
Bharti AXA Life - AspireLife - Steady money 11.58
Bharti AXA Life - AspireLife - Steady Money
Pension 10.28
Bharti AXA Life - Dream Life Pension - Grow
Money Pension 4.45
Bharti AXA Life - Dream Life Pension - Save and
Grow Money Pension 8.07
Bharti AXA Life - FutureConfident - Grow money 7.97
Bharti AXA Life - FutureConfident - Save`n`grow
money 9.99
Bharti AXA Life - FutureConfident - Steady money 11.58
Bharti AXA Life - FutureConfident II - Grow
money 7.97
Bharti AXA Life - FutureConfident II -
Save`n`grow money 9.99
Bharti AXA Life - FutureConfident II - Steady
money 11.58
Bharti AXA Life - InvestConfident - Grow money 7.97
Bharti AXA Life - InvestConfident - Save`n`grow
money 9.99
Bharti AXA Life - InvestConfident - Steady money 11.58
Bharti AXA Life - WealthConfident - Grow money 7.97
Bharti AXA Life - WealthConfident - Save`n`grow
money 9.99
Bharti AXA Life - WealthConfident - Steady money 11.58
Bajaj Allianz - Future Secure Asset Allocation
Pension Fund 8.2

Bharati AXA is the new private life insurance company on the block. The company has added
three products recently. ‘Secure Confident’ is a term cover aimed at people in the age group of 18
to 55 years. It offers you the facility of taking a critical illness rider along with the scheme but its
premium will not exceed 30% of the basic policy premium. Policy can be taken for five, 10, 15,

36
20 or 25 years and you will have to invest a premium of minimum Rs 1,500 every year.
Company’s ULIP plan is known as ‘Wealth Confident’ and anyone who is 18 or above can invest
in it. While the policy is for 10 years, premium has to be paid for only five years. After two
years, policyholder has the option of increasing or decreasing the premium. Investor can choose
among four funds depending upon his/her capacity of taking risk. Annual premium for this
policy is at least Rs 24,000.

Bharati AXA has also launched capital guaranteed ULIP plan called ‘Future Confident’. The
policy is for children’s education and for retirement. You can invest in this policy at any age and
for maximum 70 years. You can opt for a number of riders along with the policy. Four types of
funds are available for investment. The policy has a premium of Rs 10,000 per year. The
company is also planning to launch child plan and pension plan soon.

HDFC Standard Life Insurance

Insurance Plans NAVs (Rs)

HDFC Standard - Unit Linked Endowment

Balanced Managed Fund 32.06
HDFC Standard - Unit Linked Endowment
Defensive Managed Fund 28.93
HDFC Standard - Unit Linked Endowment Equity
Managed Fund 34.13
HDFC Standard - Unit Linked Endowment Growth
Fund 38.48
HDFC Standard - Unit Linked Endowment Liquid
Fund 27.41
HDFC Standard - Unit Linked Endowment Plus
Balanced Managed Fund 32.06
HDFC Standard - Unit Linked Endowment Plus
Defensive Managed Fund 28.93
HDFC Standard - Unit Linked Endowment Plus
Equity Managed Fund 34.13
HDFC Standard - Unit Linked Endowment Plus
Growth Fund 38.48
HDFC Standard - Unit Linked Endowment Plus II - 6.82

37
Balanced Managed Fund II
HDFC Standard - Unit Linked Endowment Plus II -
Defensive Managed Fund II 8.82
HDFC Standard - Unit Linked Endowment Plus II -
Equity Managed Fund II 5.52
HDFC Standard - Unit Linked Endowment Plus II -
Growth Fund II 4.59
HDFC Standard - Unit Linked Endowment Plus II -
Liquid Fund II 10.65
HDFC Standard - Unit Linked Endowment Plus II -
Secure Managed Fund II 10.39
HDFC Standard - Unit Linked Endowment Plus II -
Stable Managed Fund II 10.58
HDFC Standard - Unit Linked Endowment Plus
Liquid Fund 27.41
HDFC Standard - Unit Linked Endowment Plus
Secure Managed Fund 25.24
HDFC Standard - Unit Linked Endowment Plus
Sovereign Fund 23.87

Unit-Linked Insurance Plans have received overwhelming response from investors, thanks to the
bullish market and the convenience of addressing insurance and investment needs at one go.
After the recent guidelines issued by the Insurance Regulatory and Development Authority,
ULIPs will appeal only to the long-term investor who is also looking for insurance cover.
However, steep expense ratios remain a cause for concern.
From a performance perspective, only a couple of ULIP equity funds, such as HDFC and SBI
Life, have outperformed the benchmark indices. Quite a few of the others have under-performed.
However, the major ULIP equity-oriented funds have outperformed the top equity mutual funds
over a one-year period. Debt ULIPs are a no-no as the high expense ratios erode the returns
generated.

Business Line has maintained that an investor's needs are best served if he takes care of his
insurance and investment needs separately, and this view remains unchanged. After the recent
guidelines there is a clear distinction between ULIPs and mutual funds. A mutual fund offers

38
more advantages in terms of costs, variety in investment style, and the flexibility to exit the fund
and shift to another in case of consistent underperformance.
ULIPs, on the other hand, give you the flexibility to shift among the various funds within the
house, without a load. Do consider ULIPs only if you are looking at a minimum 10-year
investment horizon and ensure that your insurance needs are adequately taken care of.

3.3 PERFORMANCE RECORD

Most equity-oriented ULIPs have under-performed the Sensex and the Nifty. Only the equity
funds of HDFC Life and SBI Life have outperformed the benchmark indices, the latter by a
considerable margin.

Most of the aggressive ULIP equity funds invest wholly in equities. But, on average, these funds
allocate 80-90 per cent in equities. We calculated returns for a one-year period for easy
comparison among ULIPs as very few funds have been in existence for a longer period.
Interestingly, SBI Life outperformed the top performing mutual fund too by a good margin over
a one-year period. HDFC Life's performance was almost on a par with the top equity mutual
fund.

On the flip side, SBI Life's expense structure is high. From an expense as well as performance
perspective, HDFC Life scores over the others. Most ULIPs have contained losses to 5-6 per cent
in the last four months, the only comparable bear phase in the market. Nifty is at a 3.9 per cent
loss for the same period. HDFC, which has a mid-cap exposure, suffered a 9 per cent loss.

Large-cap focus
Most ULIPs have a large-cap focus and stick to the top stocks within sectors. HDFC, however,
has a slight mid-cap tilt. Shanthi Gears and Blue Star are some of its offbeat mid-cap picks. SBI
Life is stocked up heavily on IT and capital goods. These two sectors comprise over 30 per cent
of its portfolio. Being overweight on technology also explains its substantial outperformance.
Both HDFC Life and SBI Life have a concentrated portfolio compared to others that were more
diversified in terms of sectors as well as stocks.

39
We compared the portfolios of diversified equity mutual funds with ULIPs from the same group
to see if investment styles are mimicked. Diversified equity funds had more exposure to mid-cap
stocks compared to ULIP equity portfolios. This suggests that life insurance companies follow a
more cautious approach to investing by sticking to top stocks.

ULIP debt funds

If you have chosen to invest in a ULIP, stay clear of debt funds. The only funds that may be
considered are aggressive or equity-oriented funds as only such funds may turn in expense-
beating returns over the long run. However, a pure equity-oriented portfolio with constraints on
exit options is risky. Therefore, ULIPs should not form a substantial part of your portfolio.

The charges for a debt fund are much higher than those for a mutual fund. The expense ratio for
a debt fund is 0.5-1 per cent. Whereas in a ULIP, most funds have a fund management charge of
1 per cent, apart from administrative and premium allocation charges.

On average, these charges can add up to 3-4 per cent of the premium. With debt funds fetching
just 5-6 per cent, the real returns (inflation-adjusted) may actually be negative. Performance
wise, ULIP debt funds may not be practically able to churn out superior performance to mutual
funds to justify the steep expense ratio. From a taxation perspective, ULIP debt funds may
appear to be a superior option to mutual funds. However, if you opt for the dividend option,
mutual funds are on a par, even from a taxation perspective, as dividends are tax-free in the
hands of the investor. Maturity proceeds of ULIP debt funds are exempt from tax. You will have
to pay a 10 per cent tax on debt funds if you hold for more than a year, and at the applicable tax
slab if held for less than a year.

3.4 CHARGES IS CONCERN

Hefty charges still remain a big deterrent to ULIPs. Even after HDFC Life reduced its expenses
substantially, others failed to follow. HDFC Life has the lowest expense ratio in the industry, at 4
per cent. Considered here are only the regular yearly charges, such as premium allocation charge,
fund management charge and administration charges; the initial premium allocation charges have
been ignored to aid easy comparison. All expense ratios mentioned above assume an annual

40
premium of Rs 10,000, with the ratios declining as the premium rises. This is still higher than the
maximum expenses allowed for a mutual fund, at 2.25 per cent. This challenges the argument
that charges even out from a long-term perspective. Even from a 10-year horizon, ULIPs will
continue to be an expensive alternative to mutual funds for your investment portfolio.

Lock-in, a deterrent
The recent IRDA guidelines stress the long-term nature of the product and have increased the life
cover component for a ULIP. This does give ULIPs an identity of their own. However, from an
investor's perspective, the lock-in restricts his freedom to choose between various fund
management styles. The high initial premium allocation expenses start evening out only if you
stay invested for over 10 years. Thus you are forced to stay with the fund even if it under-
performs and even with superior alternatives in the market.
An open-ended mutual fund offers an investor the flexibility to move out if there is a better
alternative. Given the low entry and exit loads, shifting from one fund to another is not as
expensive. The total expenses, including entry and exit load, for a mutual fund do not exceed 5
per cent, whereas they are over 6 per cent for most ULIPs.

41
 CHAPTER-4

FINDINGS & DATA ANALYSIS

&INTERPRETATIONS

4.1 FINDINGS OF THE RESEARCH

Around, 28% of people are still not having any ULIP policy. Hence, there is a vast
opportunity for Reliance Insurance, to work for the Market Share.

42
People who are having a ULIP, are mainly Having it from ;
1. LIC
2. ICICI
3. Reliance Insurance

Around 54% of the people are having their ULIP from 10 years.
Customers faces no problem while claiming their insurance money from,
1. Reliance Insurance
2. Bajaj Allianz
3. TATA AIG
4. Max New York Life Insurance

More than 99% of the Sample is aware of the ‘ULIP’ of ULIP Insurance.
And most of these people got to know about the plans, mainly from; Agent Callings,
The most important Feature of any ULIP (According to Respondents) is;
1. Less Formality (Paper Work)
2. Low Premium

The Decisive Factors in Choosing, a ULIP Company, for taking a ULIP Policy are;
1. Good Customer Care
2. Company’s Goodwill in the Market.

43
According to respondents, LIC, ICICI and Reliance Insurance give the maximum “Risk Cover”.
The Respondents have ranked these companies, according to their preferences.
Their Cumulative ranking are;
Companies Ranks

LIC 1
Max New York Life Insurance 2
ICICI 3
Reliance Insurance 4
MetLife 5
Bajaj Allianz 6
TATA AIG 7

‘LIC’ and ‘Reliance Insurance’ are giving maximum ‘Risk Cover’ to its customers.

DATA ANALYSIS AND INTERPRETATIONS

44
 Q.1. Do you have a Health Insurance Policy?
(a) Yes (b) No

o Interpretation:

1. the question tell about the how many people has a ULIP policy in Indian scenario, out of
our sample size 83% are agree that they has a health care policy to cover any uncertainty
in their life.
2. While 17% people are suggested they don’t have any life cover or as such policy.

45
Q.2. Which Company's ULIP ' do you have?

(a) MNYL (b) ICICI Lombard (c) Met Life

(d)Reliance Insurance (e) Bajaj Allianz (f) Tata AIG
(g) LIC (h) Others

o Interpretation:
1. The following interpretation of the graph suggests LIC is the market lead in the ULIP
while ICICI would have second choice of the customer where 21 people suggest to us
that they cover with ULIP.
2. Not position of met life is very week in this scenario out of our sample survey only 18
people are opting for ULIP from Reliance Insurance.

46
Q.3. You are having a ULIP Policy, since;?

(a) 2 y ears (b) 5 Years

(c) 10 Years

o Interpretation:

1. The data of our primary research suggested that people are maximum taken ULIP as
product in last 2 years while 10 people suggested that they would taken life insurance
product since last 5 years.

47
Q.4. Have you ever encountered a problem in making your claim from your Insurance
Company?

(a) Yes (b) No

% of Sample, encountered with problem, during Claiming

money

100% 0
90%
80%
70% 22
60% 16
50% 6 2 18 2 2 10
40% NO
30% YES
20% 10
10% 4
0% 0 0 0 0 0
MNYL ICICIC MetLife RIL BajajTATA AIG LIC Others

Companies

o Interpretation

1. The countered problem with making claim is the one important area for any ULIP if the
people perceive that insurance will give him/her problem free claim that would more
better.
2. In the case of Reliance maximum number of people does not countered problem to
claiming their money with this insurance company.

48
Q.5.a) Do you know about the 'ULIP Plans' of Reliance Insurance?

(a) Yes (b) No

o Interpretation
1. The question brief us about the awareness of Reliance Insurance it suggest that
maximum number of people out of our same size aware about the Reliance Insurance
plan while only 28 people does not know about the company health policy which exist in
the market is for ULIP plan.

49
 b) Best Awareness Medium for ULIP?

(a) News paper (b) T.V.

(c) Agent Calling (d) Others

o Interpretation
1. The best awareness medium is the biggest tools for any marketing manager in this point
of time for any insurance company while according to our survey result agent calling is
the chosen by 58 people where they can get aware about the Reliance Insurance plan so it
is good sign for the company to continue with this medium to reach their product in
maximum number of people.

50
Q.6. According to you, what is the important feature of an ULIP Plan ?

(a) Low Premium (b) Easy Payment

(c) Less Formality (d) Less time-taking

o Interpretation

1. The question tell us about according to the customer which are the most important
features in a ULIP for a customer, Less formality is the one of the important character
which is opt by the maximum people in our survey.
2. According to our survey result 61 people are actually like less formality to be included in
the life insurance product.

51
Q.7. For getting a ULIP policy for yourself, what all decisive factors, you consider, while
choosing Insurance Company?

(a) Regular Advertisement (b) Regular Calling

(c) Customer Care (d) Company’s Goodwill
(e) Good Track Record (f) References

o Interpretation:

1. The Decisive factor in choosing ULIP Company is the customer care is the maximum
value of the decisive factor in choosing for ULIP Company. 58 of the people from our
survey chosen the customer care as a biggest factor also 34 people company’s goodwill is
the factor which most of the viewers.

52
Q.8. Which company gives you the Maximum "Risk Cover" in its ULIP Plans ?

(a) MNYL (b) ICICI Lombard (c) Met Life

(d) Reliance Insurance (e) Bajaj Allianz (f) Tata AIG
(g) LIC (h) Others

o Interpretation:

1. The maximum risk is ULIP plans according to respondents Reliance Insurance is the
getting 12 people views that Reliance insurance gives maximum risk cover while LIC
cover by risk over by 34 people also oriental got 26 people about the risk cover.

53
Q.9. In your view, which is the most popular 'ULIP Company' in India?

(a) MNYL (b) ICICI Lombard (c) Met Life

(d) Oriental Insurance (e) Bajaj Allianz (f) Tata AIG
(g) LIC (h) Others

o Interpretation
1. The popularity chart of ULIP Company is where LIC got maximum point because they have
37 people choice is the same and ICICI has 14 people choice while Reliance ULIP does has good
popularity in the Indian market except chosen by the 22 people.

54
Q.10. Rank the following companies, according to your preferences for having a 'ULIP'.

(a) MNYL (b) ICICI Lombard (c) Met Life

(d) Reliance Insurance (e) Bajaj Allianz (f) Tata AIG
(g) LIC (h) Others

Average Cummulative Ranking of ULIP Companies (Ranked

by Respondents)
Ranks (The higher will be the

8 7.45
7
5.78 5.83
6
5 4.43
Lower)

4 3.13 3.23 Ranks

3
2 1.43
1
0
Max New ICICI MetLife Reliance Bajaj TATA AIG LIC
York
Companies

o Interpretation

1. The ranking chart 5.78 got met life is became the second slot the preference basis while
3.13 got Reliance is the preference for the consumer also TATA AIG has 7.45 point to
became number one preference for the customer while judging preference of the
customer it is more evident that LIC is the lowest sloth because due to of monopoly
factor. Where as Reliance has 4.43 customer preference value

55
 CHAPTER-5

RECOMMENDATIONS&CONCLUSION

56
 FINDINGS

 Public prefer private insurance mainly for the reasons such as timely service, better service,
friendly approach, better communication, immediate attention, influence of friends and
relatives as agents and trust worthiness.
 Aged people have more concern for economic factors compared to youngsters while studying
the reasoning for private policy preference. All other factors like service, human relations,
product and comfort do not vary significantly based on age though the reasoning levels are
high.
 Income, gender, experience with private insurance co., do not exert any significant level of
difference relating to the factors like service, human relations, economic, comfort and
product.
 Respondents who are experiencing both private and government policies find that the private
insurance schemes are more attractive.
 The most important means of creating awareness are agents, friends, relatives and
advertisement.
 Only half the respondents are found to be willing to recommend private insurance but 80 per
cent of them are willing to opt for private policies in the future.
 Customers are found to be highly satisfied with service facilities, human relations and
attractive schemes.
 Age and income did not exert any significant level of difference in the satisfaction level of
the customers regarding service, product, human relations, economic factors and comfort.
 Female respondents are more satisfied with the comfort they experience in the private
insurance company compared to male. Satisfaction relating to other service and products,
economic and human relations does not vary based on gender.
 Experience with the private insurance company also varies in the satisfaction level of
comfort. Freshers to private insurance found to be more comfortable than those who are more
experienced. Satisfaction level does not vary relating to the factors such as services,
economic and human relations factor based on experience with private insurance company.

57
 Significant level of variation has not been observed in any differences relating to service and
product, comfort, economic and human relations factors based on income.
 Respondents who already possess insurance from government corporations are found to be
highly satisfied with the human relation aspect compared to those who have only private
insurance. This factor does not contribute much on service and product, economic and
comfort aspects.
 Most ULIPs have a large-cap focus and stick to the top stocks within sectors
 We compared the portfolios of diversified equity mutual funds with ULIPs from the same
group to see if investment styles are mimicked
 Most ULIPs have contained losses to 5-6 per cent in the last four months, the only
comparable bear phase in the market. Nifty is at a 3.9 per cent loss for the same period.

CONCLUSION
Insurance plays a very important role in the day-to-day activities of the common man,
business houses, industries, agriculturists and other service providers. Insurance not only
provides protection for individual and industry through risk coverage; it also mobilizes
funds for economic activity and encourages savings. Thus an insurance cover is
considered an important tool for economic stability. Senior citizens need to be careful
when offers and discounts are offered to them, especially from private institutions.
Prominence should be given to the safety of their money and not short-term advantages.
There could be several fly-by-night operators looking for them to fall prey to their deals.
Remember, it's their lifetime earnings which will be at stake if the offers are not properly
evaluated. Insurance companies have a free hand in levying expenses on their ULIP
products with no upper limits being prescribed by the regulator, i.e. the Insurance
Regulatory and Development Authority. This explains the complex and at times
'unwieldy' expense structures on ULIP offerings. The only restraint placed is that insurers
are required to notify the regulator of all the expenses that will be charged on their ULIP
offerings. Be wary of any emails that ask you to update your bank account information.
Those could be attempts at 'phishing' (obtaining your password or other information
illegally), which could result in identity theft, unauthorized purchases or compromise of
your account.Additionally, don't click on any link that you receive in your email even if it
appears to be from your bank.Instead, make it a point to remember the URL, and type it
manually in the address bar before making any transactions.Phishing scammers create
web sites that look and feel authentic, and they usually lure victims through emails with
links that lead to the fraudu lent web sites. lent web sites.

58
It organizes various outdoor activities to boost its business and brand. Interaction with
customers during such outdoor activities would enable to understand the success ratio of
such kind of outdoor activities. Various products of the company would be discussed with
respect to their benefits and advantages. Various insurance players would be compared
with respect to their market share and products that they offer.You’re probably thinking to
yourself right now, “Wait. You pay the insurance company to indemnify your assets, but
then it makes you pay a premium, deductible, and co-pay and caps your benefits? What’s
the point?”Insurance companies can calculate the probability of something happening and
then charge you a price based on the estimated cost of insuring you. They generate profits
by charging more than your statistical cost of making claims.Think of it like this: As a
nation, people in the U.S. overpay for everything that’s insured by an amount equal to the
profits of the insurance companies. Originally, this setup allowed corporations and
individuals to share the risk of loss; each person paid just a little bit so no person had to
face the full cost of a serious disaster.Unfortunately, this is decreasingly the case, as
insurance companies grow in profitability and incur unnecessary overhead costs. That’s
precisely why many nations require their insurance companies to operate as nonprofit
organizations.You can insure just about anything on the planet. (Consider that Lloyd’s of
London will insure the hands of a concert pianist or the tongue of a famous wine taster!)
Corporations sometimes take life insurance policies on critical employees who have
specialized skills or knowledge that can’t be easily replaced without significant financial
losses.Many corporations also offer group life insurance which, like health insurance, is
cheaper than individual insurance. Life insurance comes in two basic flavors: whole and
term.Each one has a wealth of variations and additional options. The types have many
differences, but the primary distinction is that term life insurance is paid for a set period
and is only valid as long as it is being paid, while whole life insurance is considered
permanent and will build value over time.

59
60
ANNEXURES

61
 ANNEXURES

Q1. Do you have a health Insurance policy?

a) NO b) YES

Q2. Which company ULIP do you have?

(a) MNYL (b) ICICI Lombard (c) Met Life

(d) Reliance Insurance (e) Baja Allianz (f) Tata AIG
(g) LIC (h) Others

Q3. You are having a ULIP Policy, since;?

(a) 2 y ears (b) 5 Years

(c) 10 Years

Q4 Have you ever encountered a problem in making your claim from your Insurance
Company?

(a) Yes (b) No

Q5 .a) Do you know about the 'ULIP Plans' of Reliance Insurance?

(a) Yes (b) No

b) Best Awareness Medium for ULIP?

(a) News paper (b) T.V.
(c) Agent Calling (d) Others

62
Q6. According to you, what is the important feature of an ULIP Plan?

(a) Low Premium (b) Easy Payment

(c) Less Formality (d) Less time-taking

Q7. For getting a ULIP policy for yourself, what all decisive factors, you consider, while
choosing Insurance Company?
(a) Regular Advertisement (b) Regular Calling
(c) Customer Care (d) Company’s Goodwill
(e) Good Track Record (f) References

Q8. Which company gives you the Maximum "Risk Cover" in its ULIP Plans?

(a) MNYL (b) ICICI Lombard (c) Met Life

(d) Reliance Insurance (e) Bajaj Allianz (f) Tata AIG
(g) LIC (h) Others

Q9. . In your view, which is the most popular 'ULIP Company' in India?
(a) MNYL (b) ICICI Lombard (c) Met Life
(d) Oriental Insurance (e) Bajaj Allianz (f) Tata AIG
(g) LIC (h) Others

Q10. Rank the following companies, according to your preferences for having a ' ULIP’?

(a) MNYL (b) ICICI Lombard (c) Met Life

(d) Reliance Insurance (e) Bajaj Allianz (f) Tata AIG
(g) LIC (h) Others

63
BIBLIOGRAPHY

64
 BIBLIOGRAPHY

WEBSITES

 https://www.reliancenipponlife.com

 https://www.reliancecapital.co.in/Reliance-Nippon-Life-Insurance.aspx

 https://www.policybazaar.com/insurance-companies/reliance-life-insurance

 https://en.wikipedia.org/wiki/Reliance_Life_Insurance

 https://www.investopedia.com/terms/i/insurance.asp

 https://www.irdai.gov.in

 https://www.irdaonline.org/

 https://www.moneycontrol.com/news/business/personal.../what-is-ulip-1438265.html

 https://www.reliancenipponlife.com/unit-linked-plans

 https://www.avivaindia.com/

 https://www.bankbazaar.com › Insurance › Life Insurance

 https://www.bajajallianzlife.com/renewal-payment.jsp

 https://www.bharti-axagi.co.in/

 https://en.wikipedia.org/wiki/HDFC_Life

65