Rajender Singh

“A COMPARATIVE STUDY ON THE OFFERINGS OF INSURANCE PRODUCTS BETWEEN RELIANCE LIFE INSURANCE COMPANY LTD VS LIFE INSURANCE CORPORATION OF INDIA” BY: RAJENDER SINGH

Insurance vInsurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. vLife insurance is a policy that people buy from a life insurance company, which can be the basis of protection and financial stability after one's death. Its function is to help beneficiaries financially after the owner of the policy dies.

History of life insurance in India vAdvent of life insurance business in India in 1818 Oriental Life Insurance Company in Calcutta. vIn 1829, the Madras Equitable named Madras Presidency. v1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. vAn Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance

History cont… vLife Insurance Corporation came into existence in 1 sep. 1956. vThe LIC absorbed 154 Indian, 16 nonIndian insurers as also 75 provident societies—245 Indian and foreign insurers in all. vThe LIC had monopoly till the late 90s. vThe Govt. of India, then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies into the insurance.

Existing Insurance Companies.  1. HDFC Standard Life Insurance Company Ltd.  2. Max New York Life Insurance Co. Ltd.  3. ICICI Prudential Life Insurance Company Ltd.  4. Kotak Mahindra Old Mutual Life Insurance         

Limited. 5. Birla Sun Life Insurance Company Ltd. 6. Tata AIG Life Insurance Company Ltd. 7. SBI Life Insurance Company Limited. 8. ING Vysya Life Insurance Company Private Limited. 9. Met life India Insurance Company Ltd. 10. Royal Sundaram Life Insurance Company Limited. 11. Aviva Life Insurance Co. India Pvt. Ltd. 12. Sahara India Insurance Company Ltd. 13. Shriram Life Insurance Company

Ø To know where Reliance life insurance Company limited & life insurance Corporation of India companies stands in the market. Ø Find out the strength and the weakness of their plans. Ø And making comparative analysis between the products of Reliance life insurance Company limited with Life insurance Corporation of India.

Life insurance Corporation of India v LIC of India is one of India’s leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking to stock broking to mutual funds to life insurance to investment banking, the group caters to the financials needs of individuals and corporate. v Life Insurance Corporation of India currently has 8 zonal Offices v 101 divisional offices located in different parts of India, at least 2048 branches located in different cities and towns of India along with satellite Offices attached to about some 50 Branches, and has a network of around one million and 200 thousand agent. 7

Reliance Life Insurance Company Limited v Reliance Capital Ltd. of the Reliance – Anil Dhirubhai Ambani Group. Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate. v Reliance Capital Ltd. is one of India’s leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. v Reliance Capital Ltd. has interests in asset management, life and general insurance, 8

Reliance Life Insurance cont… Ø Minimum age of entry 30 days Ø Maximum age of entry 65years Ø Age of maturity 80 years. vProducts…. Ø Protection plan Ø Saving and investment plan Ø Retirement plan Ø Child plan

Reliance Super Market Return Plan: Ø Twin benefit of market linked return and insurance protection. Ø A Unit Linked Plan, different form traditional Life Insurance products, with maximum maturity age of 80 years. Ø Option to create your own portfolio depending on your risk appetite Choose form eight different investment funds. Ø Flexibility to switch between funds. Ø Option to pay regular as well as single premium & Top-ups. Ø Liquidity through partial withdrawals.

SWOT ANALYSIS vStrengths:      

Dedicated Employees. Well Efficient Management. Technology. Diversification of funds. Strong and popular brand name. Adaptability to changes.

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Weakness  Lack of good services.  Lack of awareness about insurance among

people.  Less coverage in Rural Areas  Late entry in market.

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Opportunities    

Fast growing economy. Increasing per –capita income in India. Saving behavior. High growth of ULIP industry.

Threats  Strong competition by HDFC SLIC, BAJAJ

ALLIANZ, BIRLA SUN LIFE and LIC.

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The functions of Insurance.  Provide Protection and Collective  

  

bearing of risk. Provide Certainty , Prevention of Losses Small capital to cover larger risks Contributes towards the development of larger industries. Means of savings and investment

Conclusion vReliance ULIP plan is better product in these days according to the need of customer. vThis offer saving as well as investment option to the customer.

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