Mahendra_Raut__nashik_

8/6/2019 Mahendra_Raut__nashik_

http://slidepdf.com/reader/full/mahendrarautnashik 1/23

INTERIM

REPORT

ON

“Sale 20 policies or generated

500000 /-Businesses”

Of

Presented By:-

Guided By:-



Sale 20 Policy & Generated 500000 /- Business Of Reliance Life InsuranceCo.Ltd

Jagdish V.Patil

Miss.Rupali Prabhugavkar

ICFAI NATIONAL COLLEGE




INDEX


Sr. No. Name of Chapter Page No.

1 Executive Summary 4

2 Introduction to Project 5

3 Industry Profile 6

4 Company Profile 10

5 Product Profile 13

6 Objectives of Study 15

7 Scope of the Study & Limitations. 16

9 Customer analysis 18

10 Findings 19

11 Recommendations & Suggestions 20

12 Conclusions 21

14 References 22




ACKNOWLEDGEMENTS

While more individuals and organizations are co-operative and extend

their support for an academic purpose, in case of this report, it has beenmore so.

I would like to acknowledge my special thanks to Hon’ble Principal

Prof.Mokashi, for providing me an opportunity for doing the Summer

Internship Project (SIP) training. I am sincerely thankful to Mr. Nitin Parkhi,

Branch Manager & Mr. Bharat Shinde, Unit Manager Reliance Life Insurance

Co. Pvt. Ltd. for giving me their invaluable time and for providing me the

relevant information about the company. They have also provided the properguidance regarding the project, so I am really thankful to them.

Finally I would like to extend my thanks to ICFAI National College and

Reliance Life Insurance Co. Pvt. Ltd. for providing me such a great

opportunity.





EXECUTIVE SUMMARY

The topic in this project report dealt with is “Sale 20 policies orgenerated 500000 /-business of Reliance Life Insurance Co.Ltd.”

Objective of the Research: -1. To study company’s (Reliance Life Insurance) marketing strategies.

2. To know about the ground level operations of the company.

3. To find out how the advisors are trained and motivated to perform the

selling of insurance products.

4. To get information about the company’s products.5. To find out the market share wise position of company.

6. To find out the strategies of Reliance Life Insurance Co. ltd. to face the

intense competition in the field.

Research Methodology:-1. Research Approach : Interview

2. Data Sources : Primary & Secondary.

3. Research Instrument : Questionnaire$

4. Type of Universe : Staff and Customers





INTRODUCTION TO PROJECT

In the times when insurance industry is one of the fastest growing industries

in India, this project report contains the policies of recruitment of sales

persons and the strategies to face the intense competition in the field, of

Reliance Life Insurance Co. Ltd. This report tells that how a life insurance

company approaches to customer. It tells that what are the skills required for

sales person and now they are trained and motivated to improve their skills.

This report also contains the information about the products, which are

marketed by the company.

In this project it is discussed that now lower level sales persons (Advisors,

Agents etc) play most important role in the marketing of life insurance

products and how they perform their activities. The competition in the

insurance sector and what are the strategies that Reliance Life Insurance Co.

Ltd. has acquired to face and fight the competition is described in the report.

Overall scenario of competition in the life insurance market is presented in

the report.





INDUSTRY PROFILE

Insurance may be defined as a social device to reduce or eliminate the risk of

life and properties. Risks which can be insured against include fire, peril of

sea, death incident and burglary. Insurance is a contract whereby in return

for the payment of premium by the insured. The insurance pay, financial

losses suffered by the insurer as result of the Occurrence of the unforeseen

events.

INSURANCE IN INDIA

The insurance sector in India has come a full circle from being an open

competitive market to nationalization and back to a liberalized market again.

Tracing the developments in Indian insurance sector reveals the 3600 degree

turn witnessed over a period of almost two centuries.

BRIEF HISTORY OF INSURANCE SECTOR

The business of life insurance in India in existing form started in India in the

year 1818 with the establishment of the “Oriental Life Insurance Company”

in Calcutta.

Milestones in the Life Insurance Business in India are:

1912:The Indian Life Insurance companies act enacted as the first statue to

regulate the life insurance business.





1928:The Indian insurance companies act enacted to enable the Govt. to

collect statically information about both life and non life

insurance business.

1956:245 Indian and Foreign insurers and provident societies taken over by

the central government and nationalized. LIC formed by an act of

parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5

Cores from the Government of India.

Insurance Sector Reforms:-

In 1993, Malhotra Committee, headed by Former Finance Secretary and RBI

Governor R. N. Malhotra, was formed to evaluate the Indian insurance

industry and recommend its future direction.

The Malhotra Committee was set up with the objective of complementing the

reforms initiated in the financial sector.

The reforms were aimed at “creating a more efficient and competitive

financial system suitable for the requirements of the economy keeping in

mind the structural changes currently underway and recognizing that

insurance is an important part of the overall financial system where it was

necessary the need for similar reforms…”

Some of the key points of the recommendations of the Committee in 1994

are as below:-

• Govt. stake in the insurance companies to be brought

down to 50%.





• All the insurance companies should be given greater

freedom to operate.

• Private companies with a minimum paid up capital of Rs.

1 Bn should be allowed to enter the industry.

• No company should deal in both life and non-life

insurance through a single entity.

• Foreign companies may be allowed to enter the industry

in collaboration with the domestic Co’s.

• An insurance regulatory body should be set up.

• Mandatory investments of Lice Life Fund in Govt.

securities to be reduced from 75% to 50%.

• Insurance companies must be encouraged to set up unit

linked-pension plans.

• Computerization of operations and updating of

technology to be carried out in the insurance industry.





IRDA

The Insurance Regulator and Development Authority (IRDA) were

established in December, 1999 by the parliament. As name suggests IRDA isthe statutory body, which regulates all the insurance companies operating in

India.

All the agents (advisors) of insurance companies get license after exams

held by IRDA and then they can work as insurance agents.

Entry of Private Players:-

The introduction of private players in the industry has added to the colours in

the dull industry. The initiatives taken by the private players are very

competitive and have given immense competition to the one time monopoly

of the market LIC. Since the advent of the private players in the market the

industry has seen new innovative steps taken by the players in the sector.

The new players have improved the service quality of the insurance.

The following companies are present in the life insurance industry in India:-

• LIC• ICICI Prudential Life Insurance Co. Ltd.

• Bajaj Allianz Life Insurance Co. Ltd.

• Birla Sun Life Insurance Co. Ltd.

• HDFC Standard Life Insurance Co. Ltd.

• ING Vysya Life Insurance Co. Ltd.

• Max New York Life Insurance Co. Ltd.

• Met Life India Insurance Co. Ltd.

• Kotak Mahindra Old Mutual Life Insurance Limited.

• SBI Life Insurance Co. ltd.

• Tata AIG Life Insurance Co. Ltd.

• Reliance Life Insurance Co. Ltd.

• Aviva Life Insurance Co. India Pvt. Ltd.





• Sahara India Life Insurance Co. Ltd.

• Shriram Life Insurance Co. Ltd.

• Bharati AXA Life Insurance Co. Ltd.

COMPANY PROFILE

Reliance Life Insurance offers you products that fulfill your savings andprotection 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., apart of Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector financial services companies, and ranks amongthe top 3 private sector financial services and banking companies, in termsof net worth. Reliance Capital has interests in asset management and mutualfunds, stock broking, life and general insurance, proprietary investments,private equity and other activities in financial services.

Reliance - Anil Dhirubhai Ambani Group also has presence inCommunications, Energy, Natural Resources, Media, Entertainment,Healthcare and Infrastructure.

Distribution:-

• RLIC has been one of the fast gainers in market share in new

business premium amongst the private players with an incrementalmarket share of 4.1% in the Financial Year 2007-08 – from 3.9% inApril 07 to 8% in Feb 08. ( Source: IRDA)

• Also continues to be amongst the fast growing Private LifeInsurance Companies with a YOY growth of 195% in new businesspremium as of Mar’08.

• A Company that has crossed 1.7 Million policies in just 2 years of operation, post takeover of AMP Sanmar business.

• Initiated Express Life – and 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 shortspan of time by opening 600 branches in 10 months taking theoverall branch network above 740.

• RLIC continues to be one of the two Life Insurance companies in Indiato 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 forFair Business Practices (CFBP).

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.

Our Goal

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

• 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 businesspractices





Leadership Team





PRODUCT PROFILE

Reliance Life Insurance Co. Ltd. has a wide range of products, which can satisfy the

needs of all type and class of customers. All the products are classified into 5 basic

types; each type targets the different segments of customers. Following table

presents the project basket of the Reliance Life Insurance Co. Ltd.

Type Traditional(Unit Linked Plans)

ULIP

Protection Lifeguard -

Protection, Savings

& Investment

- Save & Protect

- Cash Back

- Life Time Plus

- Life Time Super

- Premier Life Gold

- Life Link SuperChild Plan Smart Kid Smart Kid New

Pension Plans Forever Life Life Time Super-

Pension

Wealth & Health

Plan

-complete cover to

support all health

expenses

-Liquidity through

partial withdrawals

- Flexibility to takecare of your family’s

health

-Unmatched

flexibility of free

switches & liquidity

through partial

withdrawals

- Unique Savings

Component

These are the products, which are solutions to meet the varying needs of

diverse customer segments. There is another classification of products viz.





Traditional & ULIP. In traditional plans there are no returns or lower returns.

Unlike traditional plans in ULIP (Unit Linked Plans) not only insurance but

higher returns too is there. As name suggests in ULIP, the money of

customer is invested into share market (Mutual Funds) and returns are given

customer.

1. Protection types of plans are for those people who only want to insure

their lives they do not want any returns on their policy.

2. The combination of protection, savings and investment plans are for

those people who want the benefit of savings and investment with theinsurance.

3. Child plans are for the parents who want to require future of their

children. Parents can plan, expenses of future education of their children.

4. Pension plans are for those people who want to secure their lives after

the retirement. After retirement a person need money but he can’t work in

that case pension plans are best in which a person invest money when he is

in work and earning and after retirement he gets pension.

5. Wealth & Health Plans are best for those people who are Wealth &

Health conscious. Wealth & Health plans can help the person when they get

critically deceased. These plans can compensate. Financially to the person

who have health problems which make him unable to work and earn.





OBJECTIVE OF THE STUDY

As the name suggests this project report is being prepared to find out

the recruitment process of the company and how company faces the

competition in the sector but there are other many objectives which are

related with the topic.

Following are the main objectives of the study:-

1. To study the company’s marketing strategies.

2. To know the ground revel operations of the company.

3. To study the products of the company.

4. To find out how the advisors are trained and motivated to perform

the selling of insurance products.

5. To find out the competition scenario in the life insurance sector.

6. To find out the market share wise position of life insurancecompanies.

7. To find out the strategies of Reliance life Insurance to face the

intense competition in the field.





SCOPE OF THE STUDY AND LIMITATIONS

Scopes:-

1. This project report gives information about the sales policies of the

company which marketing strategy use by selling the policy.

2. This project report reveals those motivational tools, whichencourage advisers to work with more proficiency.

3. This project report also tells about license given by the IRDA. Inshort the relationship between a life insurance company and IRDA isrevealed in this project report.

4. This project report, also tells about process of marketing of financialservices.

5. This project report gives the information about Reliance LifeInsurance Company’s position in market and the level of competitionthat is being faced by the company.





Limitations:-

1. Out of whole research & analysis, only few segments could behighlighted, leaving the aside the other segments.

2. Unwillingness of certain professional to part with vital informationsuch as client base.

3. The data had to be collected to the convenience & thus the timerestrictions were major hurdle.

4. Project is limited to the Pune City only.





Customer Analysis

NAME PLAN SUM ASSUERD TERM (YER) PREMIUM

RAKESH PATIL AIP 100000 10 1

AMIT PATIL AIP 100000 10 1

KALPESH PATIL AIP 100000 15 2

DEEPAK MAHAJAN AIP 100000 12 1

BALVANT SHARMA AIP 150000 11 2

SHEKHAR PATIL AIP 100000 15 2

SONALI PATIL AIP 100000 12 1

Weekly Record

WEEK NO. TARGET ACHIVEMENT BUSINESS

1ST Week Sales two policies Sold two policies 200000

2nd Week Sales two policies Sold two policies 200000

3rd Week Sales two policies Sold two policies 200000

4 TH Week Data collection Data collected _

5th Week Attend the trainingprogram

Attend thetraining program

_

6th Week Data collection Data collected _

7th Week Sale one policy Sold two policies 300000





FINDINGS

2) The fund collected from the customers are allocated to number of high

performing sectors like, software & I.T., Finance, FMCG, Telecom & Media

etc. to get the maximum returns, which in turn can be distributed among the

customers.

3) Govt. sector life insurance company (LIC) has market share of 64%,

where private sector companies combinable have market share of 36%.

4) In private sector life insurance companies, Reliance Life Insurance is

the No. 1 with the market share of 36% where as Bajaj Allianz has the 20%

market share.

5) Financial advisors can be categorized according to their social status,

such as:

i) Professionals (CA’s, Tax Consultant, Brokers, etc.)

ii) Salaried or Self-employed

iii) Housewives

iv) Retired Persons

v) Students

Professionals are the biggest contributors in sales with 40% followed

by salaried with 30%, housewives, retired persons and students

contribute 20%, 51 and 5% respectively.





RECOMMENDATIONS & SUGGESTIONS

1) Company should expand its distribution in rural areas of the country

keeping competition in the mind.

2) More financial advisors should be added to expand the business.

3) Most of the trainee advisors are part timers. So they don’t get time to

attend training program organized by the company. So there should be

flexibility in training program for example night training classes, distance

training program, online training, etc. By which more and more people will

comfortably get the training, which in turns will be beneficial for the

company.

4) New investment plans for lower income class should be launched. So

that they’ll also be able to invest and get profits of returns and insurance.

5) More TV advertisement should be delivered on the channels, which

have more reach among rural areas, on the prime time of the channels like

Doordarshan and Metro etc.

6) It is suggested to publish claim settlement cases to increase the

reliability in the minds of public.

7) To provide tangibility to insurance policies there should be some free

gifts for customers on each purchase of the policy.

8) It is suggested to perform social activities like opening schools, old age

homes, orphan Aries etc. to spread social responsibilities of the company,

which in turn, will increase the reliability of company in minds of public.

9) To increase awareness about life insurance in the country, it issuggested to perform awareness companies in all over India.





CONCLUSION

1) Lower Level distribution channel i.e. financial advisor is the mostimportant part of the marketing structure of the insurance company.

2) Any insurance company’s performance depends on the performance of

the financial advisors.

3) India is one of the biggest and highest potential market for life

insurance. There are big opportunities for the company to grab this market.

4) Lack of awareness about the benefits of life insurance can be clearly

seen.

5) Reliance Life Insurance Co. Ltd. is performing very well in private life

insurance sector and is on the No. 1 position in private players.





REFERENCES

Websites

1) www.google.com

2) www.irdaindia.com

3) www.reliancelife.com

2) “Marketing Management” by Philip Kotler.

3) Intranet of the Company.

4) Study material of the company.

Product Hand Book for effective sales version 2.0,


Mahendra_Raut__nashik_

Documents

Transcript of Mahendra_Raut__nashik_