consumer behaviour & perception about rmoney product

7/30/2019 Consumer Behaviour & Perception About Rmoney Product

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A

PROJECT REPORT

on

Consumer Awareness And Perception About The

Product Of Reliance Money

IN PARTIAL FULFILLMENT IN AWARD OFPGDBM TWO YEARS FULL TIME PROGRAMME

UNDER GUIDANCE OF

FACULTY GUIDE COMPANY GUIDE

Ms. VINITA AGARWAL Mr. K.V.SINGH

SUBMITTED BY

CHANDRESH BHARISHMPGDBM II SEMESTER

2007-2008

Maharishi Arvind Institute of Science & ManagementAmbabari Circle, Bharti Path, Ambabari, Jaipur-302 023 INDIA.Tel: +91-141-2335487, 2234216 Telefax: +91-141-2335120 -

E-mail: [email protected]; [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that the Summer Training Report entitled is ConsumerAwareness And Perception About The Product Of Reliance Moneyabonafide work carried out by Mr. CHANDRESH BHARISHM in partialfulfillment in award of 'Post Graduate Diploma in Business Management

(PGDBM)' course approved by All India Council for Technical Education(AICTE), Ministry of HRD, Government of India, New Delhi.

To the best of my knowledge and belief, this work is not submitted/

published elsewhere for any degree or diploma examination.

(Ms. VINITA AGARWAL)

Maharshi Arvind Instituteof Science & Management

Date:

Place: Jaipur

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ACKOWLEDGEMENT

My sincere thanks to our faculty guide Ms. Vinita Aggarwal for giving me thisopportunity to research on the company of my choice and for the constant support andguidance which he provided to me throughout this project would not have beensuccessful.

I further wish to inform that this project has been beneficial in applying theoreticalknowledge to the real world scenario in business terms.

Though a lot of hard work has gone into the marking of this project. It would not have

been possible without the assistance of few people. I would like to extend my sinceregratitude towards Reliance Mutual Funds.

Special thanks to Mr. K.V.Singh (Company guide Reliance money Jaipur),I extend mygrateful thanks to staff members of Reliance money for allowing me to pursue my workin this re-owned organisation.

Maharishi Arvind institute of science and management, Jaipur for her magnanimoussupport in fulfilling my summer training with ease and support.Thanks and Regards.

Chandresh Bharishm

PGDBM - II Semester

Maharshi Arvind Instituteof Science & Management

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INDEX Page No

1. Executive

Summary. 5

2. Introduction of the insurancesector 8

3. Anil Dhirubhai AmbaniGroup 20

4. Introduction of the

project 28

5. ResearchMethodology 42

6. Findings from theStudy.. 47

7. Conclusion.. 49

8. Suggestions

. 50

9. Limitations of theStudy. 51

10. Annexure1.. 52

11. Annexure2.. 55

12. Biblography 57

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EXECUTIVE SUMMARY

Indian Insurance Industry provides extensive research and objective analysis of thegrowing insurance industry, its product quality, and services in India. This report helps toanalyze the leading-edge opportunities critical to the success of the insurance Industry inIndia. Detailed data and analysis helps investors, financial service providers, and globalbanking players to navigate through the evolving insurance market in India.

In the simplest terms, insurance of any type is all about "managing risk." For example, in

life insurance, the insurance company attempts to manage mortality (death) rates amongtheir clients. The insurance company collects premiums from policy holders, invests themoney (usually in low risk investments), and then reimburses this money once the personpasses away or the policy matures. A person called an actuary constantly crunchesdemographic data to estimate the life of a person. This is why your characteristics such asage/sex/smoker/etc. all affect the premium that you pay. The greater the chance of aperson having a shorter life span than the average, the higher the premium that personwill have to pay. This process is virtually the same for every other type of insurance,including automobile, health, and property.

Key Issues and Facts Analyzed

The research report also addresses the issues and facts that are critical to businesssuccess:

- What are the marketing strategies of the players in the insurance industry?

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- What are the opportunities for the players in this industry and what are the challenges tosustain the Insurance market in India?

- What will be the prospective areas of investments in the insurance industry in the nearfuture?

Key Products Analyzed

Key products like Life and Non-life insurance have been analyzed, supported by factslike revenue and market trends.

Key Players

This section provides an overview of some of the key players in this industry like BajajAllianz, ING Vysya, AMP Sanmar Assurance Limited, SBI Life, Tata AIG Life, HDFCStandard, ICICI Prudential Life Insurance, Birla Sunlife, Aviva Life Insurance, KotakMahindra Old Mutual, Max New York Life, Met Life, Sahara Life, LIC, RoyalSundaram, Tata-AIG General, Reliance General, IFFCO-Tokio, ICICI-Lombard, HDFCChubb, New India Assurance Company Limited, National Insurance Company Limited,United India Insurance Company Limited and Oriental Insurance Limited.

Research Methodology Used

Information Sources

Information has been sourced from various sources namely, Books, Newspapers, tradejournals, and white papers, industry portals, government agencies, trade associations,monitoring industry news and developments, and through access to access to more than3000 paid databases.

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Key Findings

- Taking into account the changing socio-economic demographics, rate of GDP growth,changing consumer behavior and occurrences of natural calamities at regular intervals,the Indian life insurance market is expected to reach the value of around Rs 1683 Billionin the year 2009. The market is expected to grow at a CAGR of more than 200% YOYfrom the year 2006

- In 2006-07, pension premium contributed about 22.11% to total premium income ofinsurers. Interestingly, the figure in the first nine months to December 2005 was 25.22%.

- In the non-life segment, the established players control 65% of the market. So it is theirmonthly performance that determines how the market as a whole would perform.

- In Motor Insurance Business, Public sector covers almost 68% of the market valuewhereas the private sector just had 32% market share till September 2006.

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INTRODUCTION TO THE INSURANCE SECTOR

What is Insurance?

An insurance contract provides risk coverage to the insuree. A purchaser of

insurance pays a fixed premium in exchange for a promise of compensation in the event

of some specified loss. Insurance is bought because it gives peace of mind to the holders.

This comfort level is important in personal and business life. Though the primarypurpose of insurance is to provide risk coverage, when the contract period extends over a

long time, as in the case of life insurance, premium payments comprise of two

components one for buying risk coverage and the other towards savings. This bundling

together of risk coverage and savings is peculiar to life insurance and is more common in

developing countries like India. In the industrially advanced countries, this is not

necessarily so and short duration life insurance contracts without a savings component

are equally popular. In the developing economies because of the savings component and

the long nature of the contract, life insurance has become an important instrument of

mobilising long-term funds. The savings component puts the life insurance in direct

competition with other financial institutions and savings instruments.

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The total investment portfolio of the insurers in India as at the end of March, 2005

was Rs. 4,65,864 crore. The total premium collected by the insurers both life and non-life

in 2004-05 was Rs.1,00,335 crore. The major contribution came from life insurance.

The insurance penetration i.e., premia as percentage of GDP was 3.17 per cent in 2004.

While this ratio is steadily increasing, it is far below the world average of 8.06 per cent.

This shows the vast potential that exists.

Insurance and Growth

Insurance and economic growth mutually influence each other. As the economy

grows, the living standards of people increase. As a consequence, the demand for life

insurance increases. As the assets of people and of business enterprises increase in the

growth process, the demand for general insurance also increases. In fact, as the economy

widens the demand for new types of insurance products emerges. Insurance is no longer

confined to product markets; they also cover service industries. It is equally true that

growth itself is facilitated by insurance. A well-developed insurance sector promotes

economic growth by encouraging risk-taking. Risk is inherent in all economic activities.

Without some kind of cover against risk, some of these activities will not be carried out at

all. Also insurance and more particularly life insurance is a mobilizer of long term

savings and life insurance companies are thus able to support infrastructure projects

which require long term funds. There is thus a mutually beneficial interaction between

insurance and economic growth. The low income levels of the vast majority of

population has been one of the factors inhibiting a faster growth of insurance in India. To

some extent this is also compounded by certain attitudes to life. The economy has moved

on to a higher growth path. The average rate of growth of the economy in the last three

years was 8.1 per cent. This strong growth will bring about significant changes in the

insurance industry.

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At this point, it is important to note that not all activities can be insured. If that

were possible, it would completely negate entrepreneurship. Professor Frank Knight in

his celebrated book Risk Uncertainty and Profit emphasised that profit is a

consequence of uncertainty. He made a distinction between quantifiable risk and non-

quantifiable risk. According to him, it is non-quantifiable risk that leads to profit.

He wrote It is a world of change in which we live, and a world of uncertainty.

We live only by knowing something about the future; while the problems of life, or of

conduct at least, arise from the fact that we know so little. This is as true of business as

of other spheres of activity. The real management challenges are uninsurable risks. In

the case of insurable risks, risk is avoided at a cost.

Assessment of Risks

An important function of an insurer is to assess the average level of risk borne

while offering a product. This assessment depends upon a variety of factors and actuarial

calculations become necessary. This is a highly technical area involving theories of

probability. The premium charged by an insurer is based on the calculated average risk.

Obviously this premium will be high for people who perceive themselves to be in a low

risk category. However, for insurance as an activity to succeed, the population to which aproduct is offered must consist of categories with different degrees of risk. That is why

the larger the coverage, the lower the average risk and lower the premium.

Diversification is the way to reduce the average risk.

Regulatory Framework

As in the case of all financial institutions, insurance is an activity that needs to be

regulated. This is so because the smooth functioning of business depends on the trust and

confidence reposed by the customers in the solvency of the financial institutions.

Insurance products are of little value to customers, if they cannot trust the company to

keep its promise. The regulatory framework in relation to the insurance companies seeks

to take care of three major concerns (a) protection of consumers interest, (b) to ensure

the financial soundness of the insurance industry, and (c) to help the healthy growth of

the insurance market. So long as insurance remained the monopoly of the Government,

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the need for an independent regulatory authority was not felt. However, with the

acceptance of the idea that there can be private insurance entities, the need for a

regulatory authority becomes paramount. With the passing of the Insurance

Development and Regulatory Act in 2000, the insurance regulatory authority has become

a statutory authority. Protecting consumer interest involves proper disclosure, keeping

prices affordable, some mandatory products and standardization. Most importantly, it has

to make sure that consumers get paid by insurers. From the consumers point of view,

the most important function of the regulatory authority will be to ensure quick settlement

of claims without unnecessary litigation. With respect to solvency and financial health,

regulations will have to be introduced to ensure that insurance companies follow

appropriate prudential norms such as solvency margins. Large funds are under the

custody of the insurers and they get invested to produce additional returns.

The management of these funds is important to the insurer, the insured and the economy.

Entry into the insurance industry must also be regulated with suitable capital adequacy

norms. The third role should be one of development. The insurance industry in India has

a large potential and the framework of regulation must enable the industry to tap this vast

potential.

IRDA over the last decade has brought into force a number of regulations which are well

conceived. They have received wide spread appreciation. The recent decision of IRDA

to move to a free tariff regime for several general insurance products is welcome. The

prescription of tariff is contrary to market principles and insurance products need to be

priced based on market forces.

The reform of the insurance sector is part of the overall economic reform process

that is underway. The basic philosophy underlying the new economic policy is to

improve the productivity and efficiency of the system. This is sought to be achieved

partly by creating a more competitive environment. The growth of the real economy

depends upon the efficiency of the financial sector. A greater element of competition is

being injected into the financial system as well.

All regulators need to keep in mind that there is a fine distinction between

regulations and controls. Regulations lay down norms while controls have a propensity

to micromanage institutions. Regulators must take care to ensure that regulations do not

slide into controls.

The insurance industry in our country underwent a big change in 2000 when

private participants were allowed into the industry along with a streamlined regulatory

and supervisory regime. There are at present 14 private life insurance companies along

with LIC and 12 entities in non-life sector. There is evidence to show that competition

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has done good to insurance industry. The rate of growth of the industry in the post

liberalization period has been faster. It has also developed in terms of product innovation

and the use of alternative distribution channels.

Types of Life Insurance

Term Insurance Policy

Whole Life Policy

Endowment Policy

Money Back Policy

Annuities And Pension

Most of the products offered by Indian life insurers are developed and structured aroundthese "basic" policies and are usually an extension or a combination of these policies. So,what are these policies and how do they differ from each other?

Term Insurance Policy

A term insurance policy is a pure risk cover for a specified period of time. Whatthis means is that the sum assured is payable only if the policyholder dies withinthe policy term. For instance, if a person buys Rs 2 lakh policy for 15-years, hisfamily is entitled to the money if he dies within that 15-year period.

What if he survives the 15-year period? Well, then he is not entitled to any

payment; the insurance company keeps the entire premium paid during the 15-year period.

So, there is no element of savings or investment in such a policy. It is a 100 per cent riskcover. It simply means that a person pays a certain premium to protect his family againsthis sudden death. He forfeits the amount if he outlives the period of the policy. Thisexplains why the Term Insurance Policy comes at the lowest cost.

Whole Life Policy

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As the name suggests, a Whole Life Policy is an insurance cover against death,

irrespective of when it happens. Under this plan, the policyholder pays regular premiums until his death, following

which the money is handed over to his family.

This policy, however, fails to address the additional needs of the insured during his post-retirement years. It doesn't take into account a person's increasing needs either. While theinsured buys the policy at a young age, his requirements increase over time. By the timehe dies, the value of the sum assured is too low to meet his family's needs. As a result ofthese drawbacks, insurance firms now offer either a modified Whole Life Policy orcombine in with another type of policy.

Endowment Policy

risk cover with financial savings, endowment policies is the most popular policies in theworld of life insurance.

In an Endowment Policy, the sum assured is payable even if the insured survives

the policy term. If the insured dies during the tenure of the policy, the insurance firm has to pay

the sum assured just as any other pure risk cover.

A pure endowment policy is also a form of financial saving, whereby if the personcovered remains alive beyond the tenure of the policy, he gets back the sumassured with some other investment benefits.

In addition to the basic policy, insurers offer various benefits such as double endowmentand marriage/ education endowment plans. The cost of such a policy is slightly higher butworth its value.

Money Back Policy

These policies are structured to provide sums required as anticipated expenses(marriage, education, etc) over a stipulated period of time. With inflationbecoming a big issue, companies have realized that sometimes the money value ofthe policy is eroded. That is why with-profit policies are also being introduced tooffset some of the losses incurred on account of inflation.

A portion of the sum assured is payable at regular intervals. On survival the

remainder of the sum assured is payable. In case of death, the full sum assured is payable to the insured.

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The premium is payable for a particular period of time.

ANNUTIES AND PENSION

In an annuity, the insurer agrees to pay the insured a stipulated sum of moneyperiodically. The purpose of an annuity is to protect against risk as well as provide moneyin the form of pension at regular intervals.

Over the years, insurers have added various features to basic insurance policies in orderto address specific needs of a cross section of people.

Functions Of Insurance

The functions of Insurance can be bifurcated into two parts:

1. Primary Functions2. Secondary Functions3. Other Functions

The primary functions of insurance include the following:

Provide Protection - The primary function of insurance is to provide protection againstfuture risk, accidents and uncertainty. Insurance cannot check the happening of the risk,but can certainly provide for the losses of risk. Insurance is actually a protection againsteconomic loss, by sharing the risk with others.

Collective bearing of risk- Insurance is a device to share the financial loss of fewamong many others. Insurance is a mean by which few losses are shared among largernumber of people. All the insured contribute the premiums towards a fund and out ofwhich the persons exposed to a particular risk is paid.

Assessment of risk- Insurance determines the probable volume of risk by evaluatingvarious factors that give rise to risk. Risk is the basis for determining the premium ratealso

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Provide Certainty - Insurance is a device, which helps to change from uncertainty tocertainty. Insurance is device whereby the uncertain risks may be made more certain

The functions of Insurance can be bifurcated into two parts:

1. Primary Functions2. Secondary Functions3. Other Functions

The primary functions of insurance include the following:

Provide Protection - The primary function of insurance is to provide protection againstfuture risk, accidents and uncertainty. Insurance cannot check the happening of the risk,but can certainly provide for the losses of risk. Insurance is actually a protection againsteconomic loss, by sharing the risk with others.

Collective bearing of risk- Insurance is a device to share the financial loss of fewamong many others. Insurance is a mean by which few losses are shared among largernumber of people. All the insured contribute the premiums towards a fund and out ofwhich the persons exposed to a particular risk is paid.

Assessment of risk- Insurance determines the probable volume of risk by evaluatingvarious factors that give rise to risk. Risk is the basis for determining the premium rate

also

Provide Certainty - Insurance is a device, which helps to change from uncertainty tocertainty. Insurance is device whereby the uncertain risks may be made more certain.

The secondary functions of insurance include the following:

Prevention of Losses - Insurance cautions individuals and businessmen to adoptsuitable device to prevent unfortunate consequences of risk by observing safetyinstructions; installation of automatic sparkler or alarm systems, etc. Prevention of lossescause lesser payment to the assured by the insurer and this will encourage for more

savings by way of premium. Reduced rate of premiums stimulate for more business andbetter protection to the insured.

Small capital to cover larger risks - Insurance relieves the businessmen fromsecurity investments, by paying small amount of premium against larger risks anduncertainty.

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Contributes towards the development of larger industries - Insurance providesdevelopment opportunity to those larger industries having more risks in their setting up.Even the financial institutions may be prepared to give credit to sick industrial unitswhich have insured their assets including plant and machinery.

The other functions of insurance include the following:

Means of savings and investment - Insurance serves as savings and investment,insurance is a compulsory way of savings and it restricts the unnecessary expenses by theinsured's For the purpose of availing income-tax exemptions also, people invest ininsurance.

Source of earning foreign exchange - Insurance is an international business. Thecountry can earn foreign exchange by way of issue of marine insurance policies andvarious other ways.

Risk Free trade - Insurance promotes exports insurance, which makes the foreign traderisk free with the help of different types of policies under marine insurance cover.

Insurance as Investment

Insurance may not be the best place to invest your hard-earned money. But there aresufficient reasons for one to believe that it can be a highly lucrative avenue to facilitatesavings. People often talk about yield on investment and tend to compare their valueswith those available on various insurance schemes. This is particularly typical within theIndian sub-continent where one conveniently forgets the element of risk covered by lifeinsurance.

It is extremely unfair to compare the performance of insurance against other investmentswithout considering the core features of insurance. The very essence of insurance is toprotect your family from the uncertainty of your life. Hence it proves very logical toevaluate the costs involved towards this feature.

When you pay insurance premium for your car, do you get anything if fortunately nomishap happens? This means that you spent the amount to secure a valuable property.

Hence you must accept that out of the total amount paid by you for your life insurance, acertain amount is used for providing the risk cover and only the balance can be utilised assavings.

In other words, the total premium you pay minus the amount evaluated as the cost ofinsurance must be considered as the amount invested to get the maturity amount. If youcalculate the yield from returns, you will be in for a surprise.

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Secondly, we tend to think very unrealistically about our life. We often compare theresults after say 10 years from an investment scheme, for instance PPF. And then we tryto convince ourselves that PPF is providing a better yield than an insurance policy.

For instance, if you invest Rs.10,000/- in PPF after 1 year your money will grow to

Rs.11100/- accruing a return of 11 percent. But what if your death occurs in the first yearitself? The Rs.10,000/- can give you an insurance cover up to an approximate sum ofRs.12 lakhs (depending upon the plan, age, etc) and this amount shall become availableto the nominee of the policyholder as against the mere paltry Rs.11,100/- that PPF shallpay.

LIFE INSURANCE-HISTORICAL PROSPECTIVE

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kautilya ( Arthasastra ). The writingstalk in terms of pooling of resources that could be re-distributed in times of calamitiessuch as fire, floods, epidemics and famine. This was probably a pre-cursor to modern dayinsurance. Ancient Indian history has preserved the earliest traces of insurance in theform of marine trade loans and carriers contracts. Insurance in India has evolved overtime heavily drawing from other countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment of theOriental Life Insurance Company in Calcutta. This Company however failed in 1834. In1829, the Madras Equitable had begun transacting life insurance business in the Madras

Presidency. 1870 saw the enactment of the British Insurance Act and in the last threedecades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) andEmpire of India (1897) were started in the Bombay Residency. This era, however, wasdominated by foreign insurance offices which did good business in India, namely AlbertLife Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indianoffices were up for hard competition from the foreign companies.

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In 1914, the Government of India started publishing returns of Insurance Companiesin India. The Indian Life Assurance Companies Act, 1912 was the first statutory measureto regulate life business. In 1928, the Indian Insurance Companies Act was enacted toenable the Government to collect statistical information about both life and non-lifebusiness transacted in India by Indian and foreign insurers including provident insurance

societies. In 1938, with a view to protecting the interest of the Insurance public, theearlier legislation was consolidated and amended by the Insurance Act, 1938 withcomprehensive provisions for effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, therewere a large number of insurance companies and the level of competition was high.There were also allegations of unfair trade practices. The Government of India, therefore,decided to nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalising the Life Insurancesector and Life Insurance Corporation came into existence in the same year. The LIC

absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indianand foreign insurers in all. The LIC had monopoly till the late 90s when the Insurancesector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west andthe consequent growth of sea-faring trade and commerce in the 17th century. It came toIndia as a legacy of British occupation. General Insurance in India has its roots in theestablishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by theBritish. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the firstcompany to transact all classes of general insurance business.1957 saw the formation of the General Insurance Council, a wing of the InsuranceAssociaton of India. The General Insurance Council framed a code of conduct forensuring fair conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimumsolvency margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalisation) Act,general insurance business was nationalized with effect from 1st January, 1973. 107insurers were amalgamated and grouped into four companies, namely National InsuranceCompany Ltd., the New India Assurance Company Ltd., the Oriental Insurance CompanyLtd and the United India Insurance Company Ltd. The General Insurance Corporation ofIndia was incorporated as a company in 1971 and it commence business on January 1sst1973.

This millennium has seen insurance come a full circle in a journey extending to nearly200 years. The process ofre-opening of the sector had begun in the early 1990s and thelast decade and more has seen it been opened up substantially. In 1993, the Governmentset up a committee under the chairmanship of RN Malhotra, former Governor of RBI, topropose recommendations for reforms in the insurance sector.The objective was to

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complement the reforms initiated in the financial sector. The committee submitted itsreport in 1994 wherein , among other things, it recommended that the private sector bepermitted to enter the insurance industry. They stated that foreign companies be allowedto enter by floating Indian companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, theInsurance Regulatory and Development Authority (IRDA) was constituted as anautonomous body to regulate and develop the insurance industry. The IRDA wasincorporated as a statutory body in April, 2000. The key objectives of the IRDA includepromotion of competition so as to enhance customer satisfaction through increasedconsumer choice and lower premiums, while ensuring the financial security of theinsurance market.

The IRDA opened up the market in August 2000 with the invitation for application forregistrations. Foreign companies were allowed ownership of up to 26%. The Authorityhas the power to frame regulations under Section 114A of the Insurance Act, 1938 andhas from 2000 onwards framed various regulations ranging from registration ofcompanies for carrying on insurance business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of Indiawere restructured as independent companies and at the same time GIC was converted intoa national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC inJuly, 2002.

Today there are 14 general insurance companies including the ECGC and AgricultureInsurance Corporation of India and 14 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%.Together with banking services, insurance services add about 7% to the countrys GDP.A well-developed and evolved insurance sector is a boon for economic development as itprovides long- term funds for infrastructure development at the same time strengtheningthe risk taking ability of the country.

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RELIANCE ANIL DHIRUBHAI AMBANI

GROUP

One of the top 3 business groups in India

Over a year old group

Over 50 million customers by far the largest in India

8 million individual shareholders among the largest in the world

Group assets of over US $ 12 billion and Group net worth of over US

$ 10 billion

Zero net debt at Group level

Group market capitalization of over US $ 33 billion; Over US $ 6

billion owned by foreign investors

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Flagship stocks included in Sensex, Nifty, MSCI and Futures &

Options

RELIANCE ADA GROUP

POWER

COMMUNICATIONS

DIVERSIFIED

NATURALRESOURCES AND

ENERGY

INFRASTRUCTUR

E

MEDIA &

ENTERTAINMENT

FINANCAL

SERVICES

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Industry landscape

Need for an efficient & credible pan- India player with integrated approach

Dominated by Indian - foreign JVs & government owned bodies

Broking & distribution industry catering to retail population fragmented

Me-too products, pricing and features

Excepting few private banks, no other pan-India player offering entire range

of financial services & suite of products

Minimal penetration beyond tier 1 and tier 2 cities

Nationalized banks all India reach organizationally not geared to offer

full spectrum of financial products & services.

OUR FOUNDER

Dhirubhai Ambani

Founder chairmen,

Reliance industry ltd India,

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Dec.28,1932 - July 6,2002

Late Dhirubhai Ambani built Reliance from scratch to be in the reckoning for a place inthe Global Fortune 500 list. This achievement is even more significant due to the fact,that the entire growth was achieved in an organic manner and in a span of just 25 years.

Dhirubhai was not just firmly rooted in traditional Indian values, but was also aquintessentially modern man - the man of the new millennium. This was clearly reflectedin his passion for mega-sized projects, the most advanced technology and the highestlevel of productivity.

The corporate philosophy he followed was short simple and succinct - "Think big. Thinkdifferently. Think fast. Think ahead. Aim for the best". He inspired the Reliance team todo better than the best - not only in India but also in the world.

Dhirubhai Ambani, Founder Chairman of the Reliance Group, had an acute sense that

education alone empowers people. He was a great communicator. He communicated toinspire, to guide, to educate and to motivate.

It was his vision that Reliance should venture in all spheres of activities and stamp itsclass in whatever it does, testimony of which is seen today, in the form of its foray in theservices sector including Reliance General Insurance Co. Ltd., catering to a wide range ofpublic needs.

Reliance Capital

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

registered with the Reserve Bank of India under section 45-IA of the Reserve Bank ofIndia Act, 1934. RCL was incorporated as a public limited company in 1986 and is nowlisted on the Bombay Stock Exchange and the National Stock Exchange (India)

With a net worth of over Rs 3,300 crore and over 165,000 shareholders, RCL hasestablished its presence as a leading player in the financial services sector in the country.

RCL ranks among the top 3 companies in the private financial services and bankingsector in the country, in terms of net worth.

RCL sees immense potential in the rapidly growing financial services sector in India and

aims to become a dominant player in this industry and offer fully integrated financialservices.

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Board of Directors

Shri Debasis Sengupta

Shri Debasis Sengupta was the Chairman of General Insurance Corporation and prior tothis was the CMD of New India Assurance. He has also been a director with the ICICIgroup.

Shri Satyapal TalwarShri Satyapal Talwar was the Chairman & MD in Bank of Baroda and later as DeputyGovernor in the Reserve Bank of India. He has held the post of non-executive Chairmanin various boards post retirement. An arts and law double graduate, he is also a certifiedassociate of the Indian Institute of Bankers.

Shri Rajendra P. ChitaleShri Rajendra P Chitale is an eminent Chartered Accountant, is the Managing Partner ofM/s M.P.Chitale & Co. He is a Director on the Board of the National Stock Exchange ofIndia (NSC) and other reputed companies. He is also a member of the Advisory Group onDerivatives and the Takeover Panel, Securities and Exchange Board of India as well asthe Company Law Advisory Committee of the Government of India.

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Shri Amitabh ChaturvediShri Amitabh Chaturvedi is a Chartered Accountant having more than 17 years ofexperience in the financial services sector. He has been part of senior management teamof Reliance Capital for more than three years. He has been instrumental in acceleratingthe growth of asset management and has played significant role in setting up all the other

businesses of Reliance Capital. He is Vice Chairman of Reliance Capital AssetManagement Ltd. He is also on the Board of Directors of Reliance Life InsuranceCompany Limited and Reliance Money Limited. Prior to joining Reliance group,Amitabh Chaturvedi had more than five year stint with ICICI Bank group. Before leavingICICI Bank, he served as Head of Retail Liabilities group. He also served as MD & CEOof ICICI Direct.com, the groups online broking Company

Management Team

Management Team

Chief Executive Officer K A Somasekharan

Chief Financial Officer Bipin Kabra

Underwriting and Risk Management Mukul Kishore

Chief Technology and Operations Officer Sriram Naganathan

Human Resources Prashant Utreja

Company Secretary Mohan Khandekar

Department

Department

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Retail Marketing Saugata Chatterjee

Agency & Brokers Relations Manoj S Chauhan

Large Corporates Poonam Sandhu

Small and Medium Enterprise Group Archana YadavClaims Supratik Biswas

Products Hemalatha Chandrasekhar

Technical Inspection Anil K Khanna

International Relations Dilip Sinha

Operations

To achieve business success by improving operational efficiencies, Reliance GeneralInsurance realizes the need to tighten up and streamline both channel partnerrelationships and back office operations. The brokers and channel partners are theinterface to end customers. They play a vital role in helping sustain existing customers aswell as attract new customers through better and diverse services. So it is imperative thatwe are well connected with brokers / channels partners as well as meet their needs.Improvement in back office operations can happen if policy production and billing areautomated; overall claims expenses are reduced, and claims settlement is made faster.

To be successful at doing this, we need to nurture both parts of the solution equation, that

is, creation of solution-oriented strategy and deployment of solution-based scalabletechnology that enables meeting of strategic goals laid out as part of our enterprisestrategy. In the current scenario many insurers either rely on manual methods or customcoded solutions that lack strategic approach to address their business needs. Manualexecution of their crucial operations leads to many errors that occur in documents passedfrom insurers to brokers or ceding companies to reinsurers, which results in lengthysettlement cycles. While custom coded interfaces are developed to meet a certain set ofneeds only. They are not scalable so cannot meet changing needs and require recurring IT

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investment to keep them in use.

Reliance General Insurance Co. Ltd is in the process of rolling out a 'Centrally controlled,Decentralized delivery' operations structure to ensure speedy processing and servicewhile maintaining predictable and strict quality control.A solution is also being

developed to offer strategic value through systematic design and deployment of BPM andintegration technologies. The solution will address volatile situations, and shall be ascalable and reusable solution. It would help meet the challenge of operational costssaving while enabling us to exploit business expansion opportunities.Creating

Technology

The IT strategy aims to integrate the business and IT visions and has been an importantinstrument in facilitating the dialogue between the IT community and the business leadersacross the Company. The importance of planning, in this fast-paced environment, hasnever been more critical. The technical and business segments have worked closely toidentify the impact of external drivers, clarify the business needs, and ultimatelydetermine how IT can best help in achieving the business goals.

Our Customers form the centre piece of the business architecture and rightly so, be the

focal point from a technology perspective as well. Our endeavour shall be to provideeasy, consistant and instant access of relevant information to customers across multiplechannels and touchpoints. All our technology initiatives shall be geared towards thisobjective.

The Company recognizes that the security of information requires an ongoingcommitment. Towards this end a security program would provide a continuous cycle forassessing risk, developing and implementing effective security procedures, and

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monitoring the effectiveness of those procedures. We want to guarantee the reliability,confidentiality and availability of critical information. To that end, we will continueimplementation of our strategy for enhancing information security management controls.

We are in a challenging environment, dealing with all the changes in technology, the

insurance industry, the IRDA regulations and the workplace. The expectations of whatinformation technology (IT) can do to benefit the business and its customers continue togrow. We've been working hard to provide day-to-day IT services, while keeping our eyeon where the Company is headed strategically, and also transforming the IT organizationto meet future requirements.

Investor Presentation

INTRODUCTION OF THE PROJECT

Objective of Project

Market strategies of the players in insurance industry

Growth in health and group insurance are driving the insurance sector in India.

Opportunities in this industry.

Challenges to sustain the insurance market in India.

Prospective areas of investment in the insurance industry in the near future.

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Factors that lead to growth.

Indian Financial Market

The financial markets are markets which facilitate the raising of funds or the investmentof assets, depending on viewpoint. They also facilitate handling of various risks

The financial markets can be divided into different subtypes.

Capital markets

Money markets

Derivatives markets

Insurance markets

Foreign exchange markets

Primary market

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The financial market comprise of initial issue and placement of securities. Unlike in thesecondary market, no organized stock exchanges are necessary. An organization thatneeds funds contacts their investment banker who typically assembles a syndicate ofsecurities dealers that will sell the new stock issue.

Securities dealers see this as the wholesale part of ther business. This process of sellingthe new stock issues to prospective investors in the primary market is calledunderwriting. The securities that they sell are called initial public offerings (IPOS).Dealers usually earn a commission that is built into the price of the security offering, thatis, It is not apparent unless you read the prospectus in detail.

This is contrasted with the retail part of the business, which is acting as an intermediarybetween buyers and sellers of securities in the secondary market

Secondary market

The financial market for trading of already issued securities. In the secondary market,securities are sold by and transferred from one investor to another.It is thereforeimportant that the secondary market be highly liquid and transparent. The eligibility ofStock and bonds for trading in the secondary market is regulated through financialsupervisory authorities and the rules of the market place in question. Which could be astock exchange

Capital market

The market for long-term loans equity capital. Companies and the government can raisefunds for long-term investments via the capital market. The capital market includes thestock market, the bond market, and the primary market. Securities trading on organizedcapital markets is monitored by the government; new issues are approved by authoritiesof financial supervision and monitored by participating banks. Thus, organized capitalmarkets are able to guarantee sound investment opportunities.

Money market

A general tern for the markets in which banks lend to and borrow from each other, tradefinancial instruments such as Certificates of Deposit (CDS) or enter agreements such asRepose and Reverses. The market normally trades in maturities up to one year. Itprovides short to medium tern liquidity in the global financial system. Derivatives of themoney market include forward rate agreements (FRAs) and futures.

Derivatives market

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Is any market for a derivates that is a contract which specifies the right or obligation toreceive or deliver future cash flows based on some future event such as the price of anindependent security or the performance of an index?

Derivatives markets can be standardized (many users trading fungible contracts, typically

on an exchange)

Or non-standardized (where derivatives are customized for the user by a trading desk-theover the-counter market).One derivatives market is for standardized stock options, amarket where parties can buy or sell, call or put options on a secondary market.Non-standardized derivatives instruments, such as naked warrants issued directly by financialinstitutions to a secondary market, also exist.

Insurance

The insured makes payments called premiums to an insurer, and in return is able toclaim a payment from the insurer suffers a defined type of loss. This relationship isusually drawn up in a formal legal contract.

In one classic example of insurance, a ship-owner insures a ship and receives payment ifthe ship is damaged or destroyed. This example is one of the earliest uses anddevelopment of concepts like insurance. Interestingly, ships are now more often insuredthrough risk pooling and spreading organization such as Lioyds of London because the

loss of a large ship going down is too great for one insurer to accept.

In the case of annuities, such as a pension, similar concepts apply, but in some sense inthe reverse. When applied to annuities, the terms risk and loss are somewhat differentfrom traditional insurance as they concern the chances of living beyond life expectancyand the need for income during the period between annihilation and death.

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Insurance attempts to quantify risk by pooling together a large number of risks. Thismakes use of the law of large numbers. As applied to insurance, this means that thegreater the number of similar risks, the greater accuracy with which insurers can estimatethe overall risk.

For example, many individual people purchase health insurance. Policies and they eachpay a small monthly or yearly premium to an insurance company. When a policyholdergets ill, the insurance company provides money to cover medical treatment. For someindividuals the insurance benefits may total far more money than they have ever paid intothe insurance policy. Others may never make a claim. When averaged out over all of thepeople buying policies, value of the claims even out. Insurance companies set theirpremiums based on their calculated payouts. They plan to take in more money (inpremiums and in profit from the float, see below) than they pay out in the end to coverexpenses. For-profit insurance companies set their rates to make a profit rather than tobreak even. insurance companies also earn investment profits, because they have the useof the premium money from the time they receive it until the time they need it to pay

claims This money is called the float are successful, they may earn large profits, even ifthe insurance companies pays out in claims every penny received as premiums. In fact,most insurance companies pay out more money than they receive in premiums. Theexcess amount that they pay to policyholders is the cost of float. An insurance companywill profit if they invest the money at a greater return than their cost of float.

An insurance contract or policies will set out in detail the exact circumstances underwhich a benefit payment will be made and the amount of the premium.

MARKETING STRATEGIES1. Reinvent your service:

Maybe the most powerful marketing strategy, sooooo important in marketing.

Take for example a creative carpet cleaner came up with a "FREE Carpet Audit"(which they took from another successful business and applied it to their industry ;-)

The audit was basically a free analysis of your carpet. The result was a comprehensivereport on your carpet, what is wrong with it, and how it can be fixed using various carpet

treatments. This audit instantly took the struggling carpet cleaner out of the pricing gameand into the VALUE game.

The result was a higher perceived value of his services, and received more qualifiedleads and referrals (a lot more).

If you want an insurance marketing strategy that will make you the expert in yourindustry and get more qualified leads, this is it.

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You already have a fact finder. Use that. Rename it. Expand on it. And there is your"Audit".

2. Write with your client in mind...as if you were writing to a friend. But don't

talk about yourself!!!!Remember those letters that come once a year from friends or family and theydescribe in excruciating detail everything about themselves and how great their familyis? You know, the letters that are written in a tiny font and they go on and on aboutthemselves? Can't stand those letters, right? People don't want to know how great youare. They want to know that you are thinking of them, that you care, and that you wantto help them. Your writing and corresspondence (and your advertising) should emulatethe same feelings.

3. Generate Leads and Referrals daily.Make a goal and put it in writing that you are going to get at least 10 qualified referrals

every week and generate at least 20 qualified leads. Yes, go write it down now. aconscious effort to ask all your clients politely if they know anyone else interested yourservices. Secondly, after the second or third or fourth newsletter (the fun one we justtalked about), put in a referral sheet. Third, create a lead generation system that issystematized..

EMERING TRENDS IN THE INDIAN HEALTHINSURANCE MARKETPLACE

The Indian insurance industry and its regulators are currently undertaking a number ofactions to further Indias goal of developing a strong health insurance market, whichwould improve the general health status of Indians, ease the government burden of publiccare, help families avoid catastrophic financial losses, and improve the overall quality ofhealthcare in India.

One of the biggest drivers of change comes from the seemingly unconnected

propertyand-casualty insurance sector. In September 2005, the chairman of IndiasInsurance

Regulatory and Development Authority (IRDA) issued a road map outlining the stepsnon-life insurers would need to take to prepare for de-tariffing of their property casualtylines of business. (De-tariffing does away with the prescribed or agreed-upon ratesusually set forth in manuals and rate tables, and introduces market competition into therate-setting process.)

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This was a momentous decision and one that will have a huge effect on the insurancemarket for years to come. The new de-tariffed environment begins January 1, 2007.Although the new rules apply to property casualty lines, the impact will be strongly felton group and individual health product rates.

Previously, group health product rates were oftentimes held to minimal levels so thatpackage rates for multiple products could be offered to employers at attractive prices. Insome cases, rates of fifty rupees per member or less would be charged to make the totalpackage rate work. This made evaluating an organizations health line profitability verydifficult, at least from the outsiders viewpoint. The insurers tended to look at the totalcorporate profits as their measure of success, versus product-by-product performance.

Moving forward, overall corporate profitability will not be the best measure.As Indian insurers move ahead, each product line will need to stand more on its ownperformance as separate market prices dictate success and failure of organizations

product lines. It is also good public policy to require that products be pricedappropriately, as this ensures more open competition as well as limits the risk ofinsolvency. Meanwhile, new market entrants will come onto the scene, believing they canoffer better rates in one or more product areas. This will make for a highly competitiveenvironment in 2007 and beyond.

Primary ResearchIn an effort to obtain a better understanding of current rating practices in India, weconducted a brief survey of Indian health insurers in mid-2006 to ascertain theirmethodologies to calculate health product rates and study trends.

The survey was intentionally high-level and did not ask for specific pricing information,just general methodological approaches. Our initial findings confirm that organizationsattempt to use the data they have to evaluate group and individual rate adequacy.Experience rating is often used for group business, with credibility weighting whereappropriate. Individual business is rated using a tabular method, which reflects a numberof factors such as age, gender, and family size, among others.

It has been our understanding that until now the public insurers or PSUs (public sectorunits) and the private health insurers approach individual business slightly differently.PSUs have tended to be a little less aggressive in their rating of individual blocks ofbusiness. The survey responses appear to validate these patterns and practices. Surveyimplications, details, and charts are outlined below.

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The Big Picture

To put these pending changes and the existing health insurance practices in perspective,the following discussion is a general review of:

The current environment in India. The various approaches to rating group and non-group business data (as apparently

validated by a recent sampling of Indian carriers). How an international perspective might impact future Indian healthcare

underwritingwith or withoutthe use of new data. How todays environment is moving toward a best-case scenario, enhanced by the useof sharper data and the reality of de-tariffing.

The Current Environment in IndiaFrom consumers to health insurers to government regulators and healthcare providers,there are many stakeholders in the Indian health system. Its generally anticipated that allthese stakeholders will take incremental steps to yield the best improvements for Indianhealthcare and health insurance. By thinking end-to-end and taking advantage of thelatest technologies, these participants can fashion the best approach for India.Here are some of the special issues ahead for two big stakeholdersIndian consumersand Indian regulators.

Consumers

Indian culture traditionally emphasizes a philosophy of building personal financialsecurity, placing particular importance on the well being of ones family. Indianconsumers want well-designed health insurance plan/s with reasonably comprehensivecoverageand without unnecessary or counterproductive gaps. Indian Mediclaimpolicies typically cover only medical services rendered in an inpatient hospital setting.Given todays changing world of medical delivery, Indian health insurers would bewellserved to cover a broader set of services that encourage preventive well care andhealthy behaviors as well as avoid inappropriate financial incentives. When only inpatient

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hospital services are covered, insured individuals have an incentive to seek inpatienthospital care, when lower cost treatment settings (e.g., a physician's office) may be moreappropriate. Additionally programs aimed at changing unhealthy behaviors could beconsidered. Programs such as smoking cessation and weight control have been shown tohave some success in lowering a persons future risks in some markets.

For consumers to purchase health insurance, several things need to exist:

Financial incentives

While the desire to protect savings by itself is a strong motivator, India may well considerproposing enhanced tax treatment of insurance costs for individuals (some of whichexists.) Another path not currently present inIndia is structuring financing alternativessuch as medical savings accounts, which combine higher-deductible insurance coveragewith money set aside in tax favored accounts for future health costs.

Competitively priced products with choice

To make prudent purchases,consumers should be able to choose among hospitals andother healthcare providers, along with coverage scope and insurers. Not every familysituation is the same, nor does every person need or want the same coverage. Likewise,providing for non-inpatient services encourages smarter buying: Fairly priced,affordable products will ensure accessibility to the greatest number of people.

Understandable information

Educating consumers about health insurance, in general, will be extremely important.Beyond awareness of insurance coverage,information on disease, cost of treatments,alternative treatment options, and the quality of the treatments provided must be availableto consumers to make informed choices.

Employer-sponsored programs

Financing of health insurance through employer-sponsored programs is likely to improveaccess to insurance for some.

Employers would have to be motivated to provide such coverage; again, morefavorable tax treatment might be a motivating force.

While it is important that health insurance provide sufficient protection to make itattractive to the buying public, care must be taken to design coverages that sufficientlyinvolve the consumer in the cost of care, so that individuals are encouraged to behave in a

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cost-conscious way. A health insurance policy that provides 100% coverage for allservices removes the patient entirely from the economic consequences of his course or

Reliance Health Wise Policy

Introduction

Seeing your family in the pink of health ranks highest in priority for you. Yet, despiteyour best efforts, illnesses do occur. With the spiraling cost of health care, theseunforeseen circumstances can take a toll on your savings. To ensure that you dont needto spend your hard earned money on treatment of any such illness; we have a Policy thatoffers you all the financial support that you need.

Key Advantage

For the first time in India, Critical Illnesses are also covered as part of your HealthInsurance Policy.

A separate Double Sum Insured is automatically available as soon as any of the

listed critical illnesses is diagnosed. 24 hours cashless facility at more than 3000 network hospitals.

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Income Tax benefits under Section 80 D.

Options in duration of coverage 1 year/2 year policies available.

Family Floater benefit giving comprehensive protection to your family members

under one single Policy. Discount on renewal premium for claim free policy.

Coverage of pre-existing conditions after 2 years/4 years as per plan opted.

What does this Policy cover?

Depending on the Plan opted by you, your Reliance HealthWise Policy covers:

Hospitalisation Expenses - Expenses incurred towards-

Hospital (room, boarding and operation theatre)

Doctors & nurses Medical tests

Medicines, blood, oxygen, appliances etc.

Day Care Treatment - Medical expenses towards specific technologically advanced daycare treatments/surgeries where 24 hours of hospitalisation is not required.

Domiciliary Hospitalisation - All expenses related to a medical treatment, which isbeing administered at home, subject to specific conditions applicable.

Pre and Post Hospitalisation - Medical expenses related to your treatment before andafter hospitalisation for a specified number of days.

Pre-Existing Diseases - Coverage of pre-existing diseases after two/four continuousrenewals with us.

Critical Illness - Your Sum Insured is automatically doubled separately for treatment ofCancer, Coronary artery bypass surgery, First heart attack, Kidney failure, Multiplesclerosis, Major organ transplant, Stroke, Aorta graft surgery, Paralysis and Primarypulmonary arterial hypertension.

Donor Expenses - All hospitalisation expenses incurred by the Donor in case of majororgan transplant are covered.

What are the value added benefits available?

Your Reliance HealthWise Policy offers a host of value added benefits, depending on thePlan opted by you. These include:

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Daily Hospitalisation Allowance for a maximum period of seven days.

Nursing Allowance for a maximum period of five days, on recommendation of the

treating Medical Practitioner. Reimbursement of charges towardsLocal Road Ambulance Services.

Recovery Benefitof Rs. 10,000/- in case of hospitalisation for more than ten

consecutive days. Expenses of an Accompanying Person at the Hospital/Nursing Home for a

maximum of five days. Cost of Health Check up at the end of a block of four years, provided there were

no claims reported.

What are the additional features of this Policy?

Family Floater - Covers your family on a floater basis applicable to a maximum

of four persons comprising of you, your spouse and two dependent children underthe age of 21 years. Example- If Mr. Sharma and his family choose a regular

health insurance plan with Rs. 1 lakh Sum Insured each; they would have to payindividual premiums for each member of the family. In addition, the cover foreach Insured member would be only up to one lakh, even if the treatment costsbeyond Rs. 1 lakh. But, if they take a Policy of Rs. 3 lakhs for the entire familyunder a floater Plan offered by Reliance HealthWise Policy, anyone from thefamily can claim up to Rs. 3 lakhs.

Renewal Discounts - Equivalent to 5% of renewal premium, if there are no

claims in the previous year

.

Income Tax Benefit - Premium eligible for deduction under Section 80 D of theIncome Tax Act.

Who are covered under the Policy?

Children above the age of three months and adults below the age of 65 years.

Children between three months and five years can be covered only if one or both

the parents are covered. Maximum age to enter the Plan is 65, 60 and 55 for Standard, Silver and Gold

Plan respectively.

Particulars Standard Silver Gold

BasicFeature

Hospitalisation

Domiciliary Hospitalisation

Pre Hospitalisation 30 days 60 days 60 days

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Post Hospitalisation 60 days 90 days 90 days

Pre-Existing Diseases Coverage after 4thyear

after 2ndyear

after 2ndyear

Critical Illness (with separate Double

Sum Insured)

x x

Donor Expenses x

Day Care Treatment

ValueAddedFeature

Daily Hospitalisation Allowance x x

Nursing Allowance (per day amount) x Rs. 250/- Rs. 300/-

Local Road Ambulance Service(maximum of)

Rs. 500/- Rs. 750/- Rs. 1000/-

Recovery Benefit x x

Expenses on accompanying person (per

day amount)Rs. 200/- Rs. 250/- Rs. 300/

Cost of Health Check up

Policy Options

Choose your plan -You may choose any of the following plans

Reliance HealthWise Policy - Standard

Reliance HealthWise Policy - Silver

Reliance HealthWise Policy - Gold

Two-Year Policy - Continuous coverage for two years without the hassles of annuallyrenewing your Policy.

Wide range of Sum Insured

Standard - 1 lakh to 5 lakhs

Silver - 1 lakh to 5 lakhs

Gold - 1 lakh to 5 lakhs

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What does the Policy not cover?

At Reliance General Insurance, we would like our Policy to be as transparent as possible.To ensure that you do not face any unpleasant surprises when you make a claim, wewould like you to know some of the major exclusions under the Policy.

Certain ailments are not covered in the first year of the inception of the Policy.

However, they are covered from the second year onwards. These are Cataract,Benign Prostatic Hypertrophy, Congenital Internal Diseases, Fistula in Anus,Piles, Hysterectomy for Menorrhagia or Fibromyoma, Hernia, Sinusitis andrelated disorders. This exclusion will not be applicable for roll over cases andrenewals.

Pre-existing illness will not be covered for the first two/four years, as per the Plan

opted. Any disease contracted during the first 30 days of inception of Policy. This

exclusion will not be applicable for roll over cases and renewals.

Treatment of pregnancy & childbirth-related complications. Suicide, self inflicted injury or illness, mental disorder, anxiety, stress or

depression, use of alcohol or drugs. Diseases such as HIV or AIDS.

Cost of spectacles, contact lenses and hearing aids.

Dental treatment or surgery of any kind unless requiring hospitalisation.

Expenses on vitamins and tonics unless forming part of treatment for

disease/injury. Naturopathy treatment or obesity related treatment.

War, terrorism and nuclear weapons induced hospitalisation.

How can I get this Policy?

All you need to do is fill in the necessary details in the Proposal Form and hand it overalong with your cheque to your Insurance Advisor. You will instantly get a Health Kit,containing among other things your Policy and Health Card.

How do I claim my insurance?

You can claim your insurance through the cashless and/or reimbursement facility.To avail our cashless facility at more than 3000 of our network hospitals across thecountry, contact our Third Party Administrators (TPA) on the helpline numbers given onyour health card. Once you submit the required documents, the TPA would arrange forcashless facility to be made available at the Hospital/Nursing Home, provided thedisease/illness/injury, for which you are admitted in the hospital, is covered under yourPolicy. In case of an admission in a non-network hospital, inform the details to our TPA

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on the helpline numbers given on your health card. After you get discharged from thehospital, submit all your original bills to our TPA and claim for the reimbursement. Toensure that finances never interfere with your familys healthcare

RESEARCH METHODOLOGY

Once can also define research as a scientific and systematic search for pertinentinformation on specific topic. Infect research is an art of scientific investigation.Theadvance learner dictionary of current English lays down the meaning of research as Acareful investigation or inquiry especially through search for new facts in any branch ofknowledge.

Research methodology is a way to to systematically solve the research problem. It maybe understood as a science of studying how research is down scientifically.

The study undertaken by me was regarding a detailed analysis of, investors view oncurrent scenario of insurance:-

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SAMPLE POPULATION : JAIPUR

SAMPLE SIZE : 100 Persons

SAMPLING TECHNIQUE : Random Sampling

Random Sampling ensure the law of statistical regularity which states that the sample ischosen randomly.

HOUSEHOLD CUSTOMER

The household customer who has established a customer relationship that is a continuingwith a broker dealer that provides a financial product or service to the consumerprimarily for personal, family or household purpose. Information infrastructures that

allow for household required to be successful in marketing and changing policies, prices,account, location, cost and customer communication. House holding refers tounderstanding the key relationship with two or more customer to know the potentialopportunities and increased satisfaction or dissatisfaction based on communication withindividual or multiple customers. A data warehouse would have provided intelligent toproduce a better mailing list of appropriately delineated and evaluated customer.

SEGMENTATION

The house hold customer segmentation consists of a group of those household customerswho need to be change in financial policies, there or cost and services?

The customer segmentation is:

Professional

Income

Age

Geographical area

Professional:

Those household customer they are professional like:

Household home business, household retired female, household retiredmale etc they are professional household customer.

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Income

In this household customer segmentation consist of high and low income. IncomeConsist of

Household income less 2 lac

Household income 2 lac 4 lac

Household income 4 lac- 10 lac

Household income 10 lac- more than 10 lac

Age

In this household customer segmentation consist of customer age like:

Household age 20-30,

Household age 30-40, household age 50-60.

Geographical Area:

In this segmentation consists of customer Geographical areas are:

Urban Area

Rural Area

URBAN AREA :

Those household customer they needs performance, performance Quality and new

consumer. This segmentation is consisting of new service and high quality performance.

RURAL AREA:

In these Indian rural area population are generally illiterate, basically they working dailywages basis. So rural area customer are need minimum investment and maximumbenefits.

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Research Design:

Fundamental to the success of any formal marketing research project issound research design. Research design is the basic framework, which providesguidelines for the rest of research process. It is map or blueprint according to which theresearch is to be conducted. The function of research design is to ensure that the requireddata are collected and economically.

Data Collection Method

There are two types of data collection method:

Primary Data

Secondary Data

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In the section of researcher project, the requirement is to describe the source of collectingand secondary data.

Source of Primary Data Collection

Natural market1. Relatives2. Friends3. Neighbors

Stall operation

Survey

Source of Secondary Data Collection

Database from company

Reference data

Telecalling leads

Sample Size

The study is based on a survey of 100 respondents through questionnairecovering different groups of investors.

Methodology

1. Prepare a list of information needed.

2. Frame Questionnaire3. Collect information4. Convert information into data and graph5. Analyze and Interpretation.

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FINDINGS FROM THE RESEARCH

Market Share OfRELIANCEIn The Life Insurance

Industry

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Company Name

PREMIU

M RANK

Total

Policies RANK

Avg

Prem/Policy RAN

LIC 55934.7 1 3.80E+07 1 14631ICICI PRU 5254.64 2 1960034 3 26808Bajaj Aliance 4269.78 3 2079217 2 20536SBI Life 2566.08 4 565701 4 45361HDFC STANDARDLIFE 1624.04 5 525147 6 31047Reliance Life 930.46 6 450917 7 20634

MAX New York 920.34 7 552670 5 16652

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Birla Sun Life 882.72 8 426746 8 20684AVIVA Life 724.03 9 297555 10 24332TATA AIG 642.35 10 408797 9 15713Kotak Mahindra 614.94 11 165203 12 37223ING Vysya 467.44 12 229223 11 20391

Met Life 344.09 13 119610 13 28768Shiram Life 179.78 14 96078 14 18711Sahara Life 43.17 15 41663 15 10361Bharti AXA 7.77 16 5703 16 13624

CONCLUSION

In the financial product all the companies are doing their business based on theircustomer centered view and looking at the customers satisfaction only and for that theyare they are using all the marketing efforts.In determining the overall market, marketing strategies and the market potential forhousehold customer expectation.In this research we are getting some conclusionFrom the analysis of the responses received from the investors in Jaipur. City, a majorityof investors are found to be conscious and enlightened regarding their investments, return& growth.

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We have very good market in Jaipur which comprises potential investors but due to lackof basic promotion & publicity these investors are not fully aware of our company &whosoever is aware of our company. Their investment decisions are done on the basis ofsecurity, analysis of risk yield & few parameters like Demographic, Physiological ,

Income, etc.

So my finding are that Reliance money should make little more efforts to trap thepotential investors, like Media advertisement, Seminars & /business Meets & building agood relationship with potential business, moreover friendly guidance.

Suggestions

1. Steps should be taken to make fair and truthful disclosure of information toinvestors, so that subscriber knows why insurance is necessary.

2. Insurance need to take advantage of modern technology like computer andtelecommunications to render service to the investor.

3. As the investors are not willing to invest in insurance unless a sum asuured orminimum return is assured, it is very essential to create the mind of the investorsthat insurance are market instruments and associated to cover the risk of lif e and ofmany things.

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LIMITATIONS OF STUDY

This survey report is also not from limitations as usual. However the absence of suchlimitation would have improved the quality n of report as given below:

1. Limited time period restricted to go in for more details the period was very shortto survey such a large area.

2. Many respondents were not interested to give the required time for thequestionnaire.

3. Respondents some times act artificially when they know their information isnoted down for some purpose.

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4. Some housewife, Business man/women and self employee denied giving any typeof information.

5. There was only some certain hours in a day in the idle hours during which the

household customer were ready to talk.

6. More data and information would have have helped the study.

ANNEXURE 1

QUESTIONAIRE

Dear Sir/Madam,This research is an effort to find the Marketing of Insurance Products

and expectation of the customer. The information given by you will be used for research

purpose and will be kept confidential.Your kind co-operation in this regard is earnestly solicited.Thanking you.

Ashish Mathur.

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NAME:AGE: SEX: MALE/FEMALEADDRESS:TELEPONE NO.ANNUAL INCOME

YOUR OCCUPATION:

Q.1 How many members are there in your home?Ans. MALE

FEMALECHILD

Q.2 How many members will earn in your home?Ans.

Q.3 What is your source of income?

Ans. SalaryBusinessSelf EmployeeOthers

Q.4 How many type of insurance do you have?Ans. 1

23More than 3

Q.5 Where you have invested your money?Ans. Insurance

Mutual fundsFixed Deposit

Q.6 How much amount you invest annually?Ans. Rs.5000

Rs.10000Rs.15000More than Rs.15000None

Q.7 What type of investment you like?Ans. Annual investment

Half yearly investmentQuarterly investment

Q.8 Are you satisfied to your investment ?Ans. Yes

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No.Q.9 What kind of insurance policy would you like to take?Ans. Term Insurance Policy

Whole Life Policy

Endowment PolicyMoney Back PolicyAnnuities And Pension

Q.10 How many year you will invest your money in any scheme?Ans 1 year

2 year3 year4 yearMore than 5 year

Q11. Which type of investment you like to make?Ans. Long termMid termShort term

Demographic Profile

Fill up your details in the table below. For every attribute; if you fall in column A,enter "1" in the score column. For every attribute; if you fall in column B, enter"0" in the score column.

Attribute A B Score

Sex Male FemaleAge 50 years

Income >=5 Lacs p.a. =3 years


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ANNEXURE 2

QUESTIONAIRE

Dear Sir/Madam,This research is an effort to find the Marketing of Insurance Products

and expectation of the customer. The information given by you will be used for researchpurpose and will be kept confidential.

Your kind co-operation in this regard is earnestly solicited.Thanking you.

Ashish Mathur

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1. Name:

2. Address:

3. Contact No.:

4. Age:

5. Gender: Male Female

6. Monthly Income: 100000

7. Occupation: Business Service

Student Housewife

8. Marital Status: Married Single

9. Please tick the company whose Insurance plan you have taken?

Aviva

HDFC Standard

Bajaj Allianz

LIC

Kotak ICICI Prudential

Reliance

10. Which products from the bank you are currently having?

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Fixed Deposit

Mutual Fund

Life Insurance

General Insurance

11. What kind of response do you get from the company regarding any problem?

Very good Satisfactory

Good Bad

12 From the following features of the company, please tick the features, whichare most attractive?

AggressivenessBehaviourServiceWork Tendency

13 Are you satisfied with the Services of the Company?

Fully Partially

Not satisfied Can't say

BIBLOGRAPHY

RESEARCH METHODOLOGY: C.R.KOTHARI

MARKETING MANAGEMENT: PHILIP KOTLER

WEBSITES:

www.google.comwww.personalfn.comwww.irda.com

RELIANCE CAPITAL INVESTORS GUIDE

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http://www.google.com/http://www.personalfn.com/http://www.irda.com/http://www.google.com/http://www.personalfn.com/http://www.irda.com/


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MAGZINES:

Business todayBrochures of reliance money

consumer behaviour & perception about rmoney product

Documents