A SUMMER PROJECT REPORT ON

AN ANALYSIS OF MARKETING STRATEIGES OF RELIANCE LIFE INSURANCE CO. LTD.

Submitted by :Masoom Raza Roll no. 8551569 Submitted for partial fulfillment of Fourth Semester Curriculum Requirement For the Award of Degree

BACHELOR OF BUSINESS ADMINISTRATION (SESSION 2007-2010)

SHRI RAM COLLEGE MUZAFFARNAGAR

ACKNOWLEDGEMENT

I was privileged to be associated with a reputed group, a company and a Brand, global presence. I would like to express immense gratitude to RELIANCE LIFE INSURANCE CO. LTD. for providing me an opportunity to complete my summer internship. I would like to express immense gratitude to RELIANCE LIFE INSURANCE CO. LTD. for providing me an opportunity to complete my summer internship. I would like to extend deep sense of gratitude to Mr. Anil Kumar Gupta (Territory manager), Who guided me with his experience and knowledge throughout my endeavors to do quality work. I would hereby, make most of the opportunity by expressing my sincerest thanks to Mr. B.K TYAGI (principal sir) for providing me the information. I express my gratitude to Mr. SOURABH MITTAL (HOD) who provided me with the important inputs and suggestions. I would like to extend deep sense of gratitude to Ms. SWATI UPADHAYAYA (project director) who teachings gave me conceptual understanding and clarity of comprehension, which ultimately made my job more easy. I would also like to thank all the faculty members who provided me with the important inputs and suggestions.

Masoom Raza

BBA 5th sem.

PREFACE

I,

Masoom

Raza,

being

student

of

BBA,

of

SHRI

RAM

COLLEGE

MUZAFFARNAGAR The project title AN ANALYSIS OFMARKETING STRATEGIES OF RELIANCE LIFE INSURANCE CO. LTD. is the analysis of the big scale sector of communication. This project The survey was conducted so as to analyze the marketing strategies of reliance life insurance big scale sector prevailing in the current industry Market research study has been conducted in order to bring out the picture of big scale sector that exists in this industry. The differences in service quality that exists in the market.

TABLE OF CONTENTS

PART 1

1-75
1 7 17

ABOUT RELIANCE LIFE INSURANCE

HISTORY OF RELIANCE INS. PRODUCTS & SERVISES OF RELIANCE INS.

PART 2
INTRODUCTION OF TOPIC RESEARCH METHODLOGY

76-100
76 78 80 81 92 93 94 95 96

OBJECTIVE

DATA ANALYSIS & INTERPRETATION CONCLUSION LIMITATIONS

RECOMMENDATION

BIBLIOGRAPHY QUESTIONNAIRE

LIST OF TABLE & FIGURSES

RELIANCE AUTOMATIC PLANAT A GLANCE THE ASSEST ALLOCATION AND INVESTMENT OBJECTIVE OF EACH OF THE PRE-PACKAGED FUNDS

35

41

THE ASSEST ALLOCATION AND INVESTMENT OBJECTIVE UNDER THE RETURN SHIELD FUND 42

THE ASSEST ALLOCATION AND INVESTMENT OBJECTIVE UNDER FUND C 43 47 67

CONVENIENT PREMIUM PAYING OPTIONS WHEN & HOW MUCH OF FIXED BENEFITS PAID

PART 1

ABOUT RELIANCE LIFE INSURANCE

An Overview of Its origin
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 per cent shareholding in AMP Sanmar Life Insurance Company in August 2005. Taking over AMP Sanmar Life provided Reliance Life Insurance a readymade infrastructure and a portfolio. AMP Sanmar Life Insurance was a joint venture between AMP, Australia and the Sanmar Group. Headquartered in Chennai, AMP Sanmar had over 90 offices across the country, 9,000 agents, and more than 900 employees.

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

Human Resources
In my book, we have no greater asset than the quality of our intellectual capital, and no greater priority than the growth and retention of our vast pool of talent Anil Dhirubhai Ambani At Reliance - Anil Dhirubhai Amabani Group, we recognise the critical role that our people play in the success and growth of each of our businesses. It is the skill and initiative of our workforce that sets us apart from our peers in todays knowledge-driven economy. It is their commitment and dedication that lends us the competitive edge, and helps us stay ahead of the curve. Its strong team of professionals is among the youngest in the country, and consists of some of the most dynamic, motivated and qualified individuals to be found anywhere in the world. First-rate management graduates, highly trained engineers, top-notch financial analysts and razor sharp accountantswe have on our rolls some of the brightest minds in the business. Mission Its transparent HR policies and robust processes are driven by a single overarching objective: To attract, nurture, grow and retain the best leadership talent in every sector and industry is which we operate. Vision To build a global enterprise for all our stakeholders, and A great future for our country, To give millions of young Indians the power to shape their destiny, Aim To create a team of world beaters that is: Committed to excellence in quality,

Focused on creation and enhancement of stakeholder value Responsive to evolving business needs and challenges Dedicated to uphold the core values of the Group Promise In order to achieve our objective, we offer our people... Growth opportunities to expand leadership capabilities True meritocracy and freedom to choose career paths Opportunities to develop and hone leadership and functional capabilities An entrepreneurial environment where people can pursue their dreams Competitive compensation

In addition, we follow a well-defined Rewards & Recognitions programme that periodically identifies exceptional individual and team achievers among the various business functions and verticals in the Group.
Expectations

At Reliance - Anil Dhirubhai Ambani Group, we encourage our colleagues to take leadership, at all levels of the organization, and participate in accelerating growth of our businesses to build a formidable enterprise. Leaders in Reliance - Anil Dhirubhai Ambani Group are expected to Always keep the customers needs in mind and constantly innovate Execute flawlessly and with speed

Sustain and strengthen the groups spirit of entrepreneurshiptaking ownership and accountability for their actions Leverage synergies to learn and build on the diverse experiences and skill sets of our various businesses and teams Create a true meritocracy with a pervasive commitment to transparent systems and processes Do all this with unquestionable Integrity to ensure total compliance with the laws of the land.

Core Values
Shareholder Interest We value the trust of shareholders, and keep their interests paramount in every business decision we make, every choice we exercise People Care We possess no greater asset than the quality of our human capital and no greater priority than the retention, growth and well-being of our vast pool of human talent

Consumer Focus We rethink every business process, product and service from the standpoint of the consumer so as to exceed expectations at every touch point

Excellence in Execution We believe in excellence of execution in large, complex projects as much as small everyday tasks. If something is worth doing, it is worth doing well.

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Team Work The whole is greater than the sum of its parts; in our rapidly-changing knowledge economy, organizations can prosper only by mobilizing diverse competencies, skill sets and expertise; by imbibing the spirit of thinking together -- integration is the rule, escalation is an exception Proactive Innovation We nurture innovation by breaking silos, encouraging cross-fertilization of ideas & flexibility of roles and functions. We create an environment of accountability, ownership and problem-solving based on participative work ethic and leading-edge research Leadership by Empowerment We believe leadership in the new economy is about consensus building, about giving up control; about enabling and empowering people down the line to take decisions in their areas of operation and competence Social Responsibility We believe that organizations, like individuals, depend on the support of the community for their survival and sustenance, and must repay this generosity in the best way they can

Respect for Competition We respect competition because theres more than one way of doing things right. We can learn as much from the success of others as from our own failures. In this Policy, the investment risk in investment portfolio is borne by the Policy holder Ensure a comfortable retirement for your corporate family.

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INDUSTRY PROFILE
INSURANCE INDUSTRY AN OVERVIEW Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of a certain event. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of insurance, large number of people exposed to a similar risk makes contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good. This is the current scenario of the global Insurance Industry and now, let us looks at the basic functions of insurance. While conceding that insurance is a risk-transfer tool, corporate should be made to understand that it does not suffice merely to transfer the risk but they have to participate in the effort of loss prevention. New but they have to participate in the effort of loss prevention. New techniques and technology have to be adopted from time to time in order to improve performance and this has special significance to the order to improve performance and this has special significance to the Indian Insurance Industry.

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HISTORY OF RELIANCE INSURANCE

Reliance Insurance activity in India is going on for more than 20 years. In India, life insurance in its modern form was brought for the first time by Britishers. The Oriental Life Insurance Company started in 1818 in Calcutta was the first to be founded in India by Europeans to help the widows of their community. The general insurance business in India, on the other hand, can trace its roots in Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. The year 1870, saw the birth of first Indian insurance company namely, Bombay Mutual Life Assurance Society. The basic aim of this company was to insure Indian lives at normal rate since in the earlier period. Indian lives were treated as subnormal and loaded with an extra premium of fifteen to twenty percent. However, right up to the end of 19th century, the foreign insurance companies in India had an upper hand in matters of Insurance business. Insuring Indian lives with 10 percent of extra premium was a common practice prevalent in those times. The Indian Life Assurance Companies were the first to regulate the life insurance business in 1912. In 1928, the Indian Insurance companies act enabled the government to collect statistical information about both life and non-life insurance business. Later, the insurance Act of 1938 was passed and Department of Insurance under authority of superintendent of
insurance was established for the administration of the Act. Up to 1939, 199 companies were working in India. However, the period 1939-55 was marked by:

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 World War II resulting in hasty premium adjustments by Indian companies. Series of amendments to the insurance Act, 1938. Appointment of a committee under the Chairmanship of Sir Cowasji Jehanger to enquire into and to recommend measures to check certain trends and undesirable features in the management of insurance companies. The findings of the sub-committee on insurance under the National Planning Commission headed by Pt. Jawaharlal Nehru. Partition of India. De-valuation of rupee on September 18, 1949. The Insurance Amendment Act. Interest yield sagging to the lowest lend of three per cent and remaining at that level over 1947-1949. The rate war and cut throat competition between insurance companies. The recommendation of the ruling political party, the Indian National Congress, to the government that the life sector insurance be nationalized, and The founding of the Jiwanlal Chimanlal Setawad Memorial-The Federation of Insurance Institutes.

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About IRDA
Structure The Life Insurance Council will have an Executive Committee of 16 members of 2 will be from the IRDA and the rest from licensed life insurers The Committee will set up standards of conduct and practices for efficient customer service, advise IRDA on controlling insurers expenses and serve as a forum that helps maintain healthy market conduct It will create and manage a process for agent examination and certification The Life Insurance Council is funded by the Life Insurers in India which

The Purpose
The Life Insurance Council seeks to play a significant and complementary role in transforming Indias life insurance industry into a vibrant, trustworthy and profitable service, helping the people of India on their journey to prosperity.

Its mission:
To function as an active forum to aid, advise and assist insurers in maintaining high standards of conduct and service to policyholders Advise the supervisory authority in the matter of controlling expenses Interact with the Government and other bodies on policy matters Actively participate in spreading insurance awareness in India Take steps to develop education and research insurance

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Help bring to India the benefit of the best practices in the world

The Council will Strive for a positive image of the industry through media, forums and opinion- makers and enhance consumer confidence in the industry Assist the industry in maintaining high standards of ethics and governance Promote awareness regarding the role and benefits of life insurance Organize structured, regular and proactive discussions with Government, lawmakers and Regulators on matters relevant to the contribution by the life insurance industry and act as an effective liaison between them Conduct research on operational, economic, legislative, regulatory and customer-oriented issues in life insurance, publish monographs on current developments in life insurance and contribute to the development of the sector Set up the Mortality and Morbidity Information Bureau (MMIB) and take an active role in its functioning Set up similar organizations for the benefit of the life insurance industry Act as a forum of interaction with organizations in other segments of the financial services sector Play a leading role in insurance education, research, training, discussion forums and conferences Provide help and guidance to members when necessary Be an active link between the Indian life insurance industry and the global markets

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Legislations & Control

Address common issues in legislation and practice. Interface with the various other regulatory bodies on behalf of the insurance industry. Identify regularly the important issues to be taken up with Government and/or IRDA & PFRDA and make presentations on behalf of the industry Prepare benchmarks for the industry in all areas of operation and help maintain high standards of conduct, ethics and governance Take measures to prevent practices that are detrimental to the interests of the policyholders

Training & Certification

Take up the work relating to the training, examination and certification of Agents as provided in the Insurance Act Play a positive role in establishing standards, training of officials and intermediaries not only in products and sales but also other aspects relevant to the life insurance industry and lift the level of professionalism Conduct professional development programs in collaboration with international councils and life insurance institutes

Education & Awareness

Launch regular insurance awareness programs Facilitate the conducting of Continuous Development Programs for intermediaries

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Provide structured regular information to the public about the industry Launch an interactive website/Life Insurance Journals/newsletters Organize / participate in major conferences, seminars, workshops and lectures by Indian/visiting experts on insurance and related areas

Facilitate knowledge-exchange programs (both in India and with Councils abroad) to develop and upgrade the skills of local insurance professionals

Co-ordinate with educational institutions in India and overseas to encourage research, professional development courses etc.

Elevate the profession of insurance selling and that of the Advisor, to that of financial analysts and planners through certification programs developed in conjunction with Indian and International institutions

Establish a consumer relations cell

The Promise
Strengthening the role of the insurance sector in India and creating wealth for its people The Life Insurance Council. A three way interaction among the insurer, the insured and Regulatory body. A convergence of interests and the collective voice of life insurance.

In Perspective
Indian Life Insurance Industry More than a century in India Large mobilizations of savings next only to banks Significant participant in the Capital Markets

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Constitutes 15% of Gross Domestic Savings Assets under management - more than Rs. 4,00,000 Crores Invested in Infrastructure - Rs. 40,000 Crores Employment Employs close to 2, 00,000. Retail customers: 92%

Agency Force 1.5 million

Policies in force Nearly 20 crores

growing

Offices Nearly 3000 offices across India and

Penetration grew from 1.2% to 2.2% of GDP

Growth

Insurance Density grew from Rs. 280 to Rs. 600 (per capita premium)

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INSURANCE SECTOR REFORMS

The insurance sector began its reform process with the passage of the IRDA (the Insurance Regulatory and Development Authority) bill in Parliament in December 1999. However with the setting up of IRDA, the government has once again de-regulated the sector opening it for the private players. The entry of private players has enabled the industry to look at alternative distribution channels. To get the maximum pie of the premium, every insurance company is adopting new distribution and marketing strategies. The transition of the insurance industry from a public monopoly to a competitive environment now presents very interesting challenges both to the new players and to the customer. Not only the new players have an opportunity to test out their various hypotheses and apply learnings from overseas markets, the customer will have a greater choice when it comes to choosing a provider or a solution for their needs.

BENEFIT OF INSURANCE
Insurance can be seen as a hedge against the unexpected calamities like death, theft or damage of property due to accidents, fire etc. The insurance potential untapped means human and physical assets unprotected and their worth unpreserved. The sense of lost worth is relatively easy to understand in the case property. But it is difficult to view human beings from this angle. When these two things are appreciated in their right spirit, life insurance in India will not remain simply as one more source or avenue of savings.

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The most important benefit is the identification of unexpected losses. Restoring of losses not only rebuilds the economic viability of an organization but also strengthens the society at large. When the uncertainty gets reduced an insured person can spend more time and energy, work with greater concentration, resulting in higher efficiency and better performance. From the management point of view, it is accumulation of fund for investment in the field of national priority. Accumulation of fund stems out of a gap in in-payment timings. This means a large amount of money remaining under the disposal of insurer for investment in a more productive way. The other major benefit arising out of insurance is the strengthening of small business houses. Insurance can help a small unit to get involved with those economic activities for which resource requirement is beyond its infernally accumulated fund and/or mobilizing capacity. The biggest beneficiary of the incoming competition in insurance will be Indian consumers. They will have more choice of insurance schemes. At present Indians are the most deprived insurance customers in the world, out of about 150 general insurance schemes on the global level, only 10 per cent of them are offered by the four subsidiaries of the GIC. So through privation consumers will get wide range of insurance products. Also claims settlement will be hassle free and customer friendly.

CHALLENGES FOR INSURANCE SECTOR

Insurance companies in India will have to develop appropriate channels to lap this huge market as the core of insurance business hinges on an efficient distribution.

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 Direct marketing is one of the most successful channels of distribution in the developed economics. It is a great way to reach a large population. So the product should be sold through telemarketing or direct mail. In the insurance business cost control and ability to service large number of customers are crucial issues. So modern technology is to be adopted to handle both the services effectively. Today customers are well equipped with information, so insurance company should reposition different product by changing customer attitudes. The actuary should be required to attend minimum number of seminars called continuous professional development courses for financial control of the organization. Distribution of existing insurance products is the main course of worry for insurance companies in India. The insurance companies are using WBFCS, banks and housing finance. Companies for distribution do not have much control on the agents and hence lose quality in the distribution channel. So Banks advisory committee, representation of agency should be licensed.

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RELIANCE LIFE PRODUCTS & SERVISES

It offers need based life insurance to solutions to individuals and corporate (Individual).

Employee Benefit
Reliance Group Gratuity policy
In this policy, the investment risk in investment portfolio is borne by the policy holder The Indian Government introduced the Payment of Gratuity Act in 1972. Generally gratuity accrues at a rate of 15 days last drawn salary per year of service for each employee or as defined by the trust deeds. Gratuity is payable immediately on cessation of employment, provided the employee has continuous service of at least five years. The five year provision does not apply on death or disablement of the employee. Gratuity by nature is a medium- to long-term liability of the employer and accordingly an appropriate medium- to long-term investment strategy should be adopted by trustees to match assets and liabilities.

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Liability for your employees gratuity is often the trickiest thing to forecast accurately and manage well. While doing so you may come across some pertinent questions: What is my true liability for employees gratuity? How do I manage this liability? Am I maximizing my potential tax benefit? Am I rewarding my most valuable employees adequately? Am I matching long-term liabilities under Gratuity with my investment strategy? Are my Gratuity assets professionally managed?

We at Reliance Life Insurance Company Limited can be of help to find answers to most of these very relevant questions. We can assist you to meet your obligations under the Payment of Gratuity Act while providing innovative solutions and delivering long-term results for your investment through our Reliance Group Gratuity Plan. You can also transfer your existing gratuity liability managed under some other funds to Reliance Life Insurance Company Limited.

Reliance Group Gratuity Plan

This is a unit linked group Gratuity product with three different fund options, namely Capital Secure, Growth and Balanced Funds. It enables employers / trustees with more than 20 employees to outsource the management of their employees Gratuity funds and the related administration to Reliance Life Insurance Company Limited.

Policy Conditions
Minimum/Maximum annual past service gratuity contribution Rs.200000/no limit Minimum/Maximum Entry Age - 18 years last birthday/64 years last birthday Maximum Maturity Age - 65 years last birthday Minimum Policy Term - 1 year

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Minimum/maximum Insured death benefit sum assured Rs.1000 per member/no limits

The Reliance Group Gratuity Plan is a unit linked Plan where the employer can choose for each member past service gratuity to be paid out to the employee and a level of insured death benefit, subject to a minimum insured death benefit of Rs.1000 per member. This insurance premium will be quoted by us and will be payable over and above the past service gratuity liability contributions. Each past service gratuity liability contribution received will be utilized to purchase units in the unit-linked funds chosen by the employer / trustees. The fund options have different time horizons, risk profiles and return levels.

Capital Secure Fund: The investment objective of the Capital Secure fund is to maintain the value of all past service gratuity liability contributions (net of charges). The current asset allocation

Limits are:
100% Government securities and bank deposits with duration of less than 180 days. Time horizon Short, Risk Level Low, Level of expected returns Low

The contributions in Capital Secure Fund must not exceed 20% of the total allocated contributions at any time.

Balanced Fund:
The investment objective of the balanced fund is to provide policyholders with investment returns which exceed the rate of inflation in the long term while maintaining a low probability of negative investment returns. The current asset allocation limits are: 80% min Government securities and

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corporate bonds & 20% max Equities. Time horizon Medium, Risk Level Low-medium, Level of expected returns - Medium

Growth Fund:
The investment objective of the Growth fund is to provide policyholders with investment returns which exceed the rate of inflation in the long term while maintaining a moderate probability of negative investment returns. The current asset allocation limits are 60% min in Government securities, corporate bonds and bank deposits & 40% max in Equities. Time horizon Long, Risk Level Medium-High, Level of expected returns - Medium

Unit Pricing:
The unit price of each fund will be calculated on a daily basis. Unit Value = Total Market Value of assets plus/less expenses incurred in the purchase/sale of assets plus Current Assets plus any accrued income net of fund management charges less Current Liabilities less Provision Total Number of units on issue (before any new units are allocated / redeemed) The unit pricing shall be computed based on whether the company is purchasing (appropriation price) or selling (expropriation price) the assets in order to meet the day to day transactions of unit allocations and unit redemptions i.e. the company shall be required to sell/purchase the assets if unit redemptions/allocations exceed unit allocations/redemptions at the valuation date. The Appropriation price shall apply in a situation when the company is required to purchase the assets to allocate the units at the valuation date as stated above. This shall be the amount of money that the company should put into the fund in respect of each unit it allocates in order to preserve the interests of the existing unit holders

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The Expropriation price shall apply in a situation when the company is required to sell assets to redeem the units at the valuation date as stated above. This shall be the amount of money that the company should take out of the fund in respect of each unit it cancels in order to preserve the interests of the continuing unit holders.

Allocation of units:
The company applies premiums to allocate units in one or more of the unit-linked funds in the proportions which the policyholder specifies. In case of New Business, units shall only be allocated on the day the proposal is completed and results into a policy by the application of money towards premium. In the case of renewal premiums, the premium will be adjusted on the due date, whether or not it has been received in advance. (This assumes that the full stipulated premium is received on the due date.) In respect of premiums received or funds switched up to 4.15 p.m. by the company along with a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which the premium is received or funds switched, shall be applicable. In respect of premiums received after 4.15 p.m. by the company along with a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.

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In respect of premiums received with outstation cheques or demand drafts at the place where the premium is received, the closing NAV of the day on which cheques / demand draft is realized shall be applicable.

Redemptions
In respect of valid applications received (e.g. surrender, benefit payment, switch out etc) up to 4.15 p.m. by the insurer, the same days closing NAV shall be applicable. In respect of valid applications received (e.g. surrender, benefit payment, switch out etc) after 4.15 p.m. by the insurer, the closing NAV of the next business day shall be applicable. The NAV for each segregated fund provided under this product shall be made available to the public in the print media on a daily basis. The NAV will also be displayed in the web portal of the company.

Benefits under the Plan

The exact benefits for a scheme under this Plan will depend on the individual employers gratuity scheme. Generally, the contingencies for benefit payment and the benefit level will be as given below: Death of employee in service past service gratuity plus insured death benefit amount Disability of employee in service - past service gratuity Retirement of employee past service gratuity Resignation / early termination of service of the employee: past service gratuity

Surrender of Policy

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If the employer / trustees decide to surrender their policy, Reliance Life Insurance Company Ltd. will pay a surrender benefit equal to the fund value minus the surrender charges, if any.

All benefits, except for insured death benefit amount, shall be payable by canceling units at the prevailing unit price. The liability of the insurer for a scheme will be limited to the fund value plus the insured death benefit amount under the scheme.

Discontinuance of Insurance Premium payment

A policy shall lapse if insurance Premiums along with Gratuity Contributions are not paid within the grace period of 30 days.Under a lapsed policy, the life cover will continue. The insurance premium will be collected by canceling units. The policy will continue to participate in the performance of unit funds chosen by the policyholder. If the policy is not revived within the period of revival of 5 years from the due date of the first unpaid premium, the surrender value, if any will be paid at the end of period allowed for revival and the contract will be terminated.

Revival of discontinued policy

A policyholder may revive a policy by recommencing the payment of insurance premiums along with Gratuity contributions at any time within a period of 5 years from the due date of first unpaid insurance premium

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Payment of gratuity liability contributions along with insurance premium For a newly set up gratuity trust, the past service gratuity liability contribution can be paid either in a lump sum or in installments spread over not more than 5 years. For an existing scheme, the annual gratuity liability contributions along with insurance premium can be paid either in yearly or half-yearly or quarterly or monthly installments.

Insurance Premium:
It means the amount payable to keep the insured death benefit in force. It will depend on the attained age at start of policy year, the amount of insured death benefit and Occupation class.

Grace Period
There is a grace period of 30 days from the due date for the payment of the insurance premium along with gratuity contributions. If insurance premium along with gratuity contribution is payable monthly, the grace period will be 15 days from the due date.

Switching & Contribution redirection:

Transferring (switching) assets from one investment fund to another can be done at any time. You can make up to four switches free of charge each year. You may also redirect past service gratuity liability contributions in future to a different asset mix. The flexibility is yours. 30

Charges
Fund Management Charges Fund Capital Secure Fund Balanced Fund Growth Fund 0.75% per annum 0.75% per annum 0.75% per annum Charge (% of funds under management) charged daily charged daily charged daily

The fund management charges are not guaranteed. The Fund Management Charges under Capital Secure Fund can be increased up to 2% per annum. The Fund Management Charges under Balanced Fund and Growth Fund can be increased up to 2.5% per annum. However any changes to the fund management charges shall be subject to Insurance Regulatory Development Authority (IRDA) approval.

Switching charges
Transferring (switching) from one investment fund to another can be done at any time. You can make up to four switches free of charge each year. Any switch above this will attract a charge of 0.1% of the switched amount subject to minimum of Rs.1000 per switch and maximum of Rs.5000 per switch. This charge is recovered by canceling units.
Surrender charges Year Charge(% of fund value) Year 1 5% Year 2 4% Year 3 3% Year 4 2% Year 5 1% Year 6 Onwards NIL

These charges are levied only if the employer / trustees decide to surrender the policy with Reliance Life Insurance Company Limited.
Suicide Claim provisions

In case of a claim where a member has committed suicide within 12 months from the date of inception of the scheme, whether sane or insane at that time, the company will limit the death

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benefit to the past service gratuity benefit (which will be paid from the unit-linked fund of the scheme), and will not pay any insured death benefit

Payment of taxes, stamp duties

We will deduct from benefits/insurance premium/contribution any taxes, duties or surcharges of whatever description where levied by any statutory authority.

Reliance Group Term Assurance Policy

What is Reliance Group Term Assurance Policy?
Reliance Group Term Assurance Policy is a one year Renewable Term Assurance contract. The benefit is payable on the happening of the contingency during one year. At the end of the year, the contract may be renewed.

Who is Reliance Group Term Assurance Policy designed for?

Employers looking for a comprehensive professionally administered term assurance cover for their employees. Subject to approval by the Provident Fund Commissioner, this Policy can be used as a replacement for the Employees Deposit Linked Insurance Scheme under the Provident Fund Act.

What are the benefits provided?

A payment is made on the death of an employee. Cover can be: Fixed multiple of salary

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% of salary for each year of future service to normal retirement date Fixed Rupee amount Fixed Age-related scale Formula based on designation / rank of employees in the group If an employee becomes disabled, as defined by us, then the benefit above is accelerated and paid out in 5 equal annual installments. No further benefit is payable subsequently. No benefits are payable on survival to the end of the year.

What options are available?

You can choose: Whether or not to provide the benefit on disablement Whether or not you wish to benefit from experience in your policy Whether or not to give your employees the choice of continuing their cover with us under an individual policy

What is the benefit from experience in the Policy?

At the end of every 3 policy periods, under the basis specified below, we will investigate the claims experience under this policy. That investigation may lead us to decide that an experience refund is due. If we declare that an experience refund is due, we will adjust it against the premium due for the next policy period.

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If it later turns out that an incorrect experience refund has been paid, the policy owner must pay any amount owed to us. Also, we may reduce the amount we pay under any claim to reflect any amount the policy owner owes.

Why take this policy?

Improved HR because the benefit has value to the employee Replacement of lump sum payments with regular premiums accelerates tax relief Statutory compliance if used to replace insurance cover under the Provident Fund Act

What do your employees get?

Coverage at rates lower than applicable to individual lives Simplified procedures for insurability- limited or no medical tests

When benefits are not payable?

We do not pay the death benefit under this policy if the Insured Person, whether sane or insane, dies by his or her own hand, within 12 months from the date on which his or her cover commenced. We do not pay the disability benefit under this policy which is caused, directly or indirectly, by: Engaging in another occupation, unless the same has been agreed upon by us; or Intentional self injury or illness (whether wholly or partly); or Participation in any criminal or illegal act; or

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Being under the influence of alcohol or drugs except under direction of a registered medical practitioner; or Racing or practicing racing of any kind other than on foot; or flying or attempting to fly in, or using or attempting to use, an aerial device of any description, other than as a fare paying passenger on a recognized airline or charter service; or Participating in any riot, strike or civil commotion, active military, naval, air force, police or similar service; or War, invasion, act of foreign enemies, hostilities or war like operations (whether war be declared or not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped power or any act of terrorism or violence. Automatic Cover will apply to: All Insured Persons who are At Work on the date of commencement of the policy; and all of the Employers permanent employees who are first eligible to become an Insured Person on or after the date of commencement of the policy and who apply to be an Insured Person within 3 months of first becoming eligible, and who are At Work on the date they first apply. Provided that the persons in (a) and (b) above: are up to age 60; have not been absent from work due to sickness or injury for more than 3 weeks in either of the 2 years prior to the date on which they are eligible to be insured under the Policy; have joined the employer before attaining age 55. Lives with cover above the automatic cover limits applicable to the group, will be underwritten and substandard lives with medical conditions and other impairments will be underwritten as per the underwriting manual. The basis of underwriting will be the full amount of cover, including up to the automatic cover limit. 35

How will the plan be administered?

We will depend on you to provide us with details of the lives covered under the policy, in a mutually agreeable format, showing for each member details like name, identity number, date of birth, male / female, date of joining, salary, if absent from work, reason for the same, benefit amount or formula for each type of benefit.

Reliance Group Superannuation Policy

In this Policy, the investment risk in investment portfolio is borne by the Policy holder Ensure a comfortable retirement for your corporate family.

Why should you consider the Reliance Group Superannuation Policy?

As an employer you currently contribute 12% of each employee's salary into the Employees Provident Fund Scheme. However, is this sufficient to provide for an adequate retirement income for your employees? The answer to this question is unfortunately, NO. Firstly, your employees have the option to withdraw assets from the Provident Fund on a regular basis to meet ongoing lifestyle expenses. Most of your employees will reach retirement age with an inadequate balance to purchase an income stream to provide them a reasonable income on retirement.The second reason is that employees are now retiring younger but are living longer.

36

Therefore the capital they need to buy an income stream is much greater than ever before, and this increase in life expectancy will continue to grow making this gap even greater.

What does Reliance Group Superannuation Policy offer?

Superannuation is a tax effective way for employers to reward and recognize employee performance. The Reliance Group Superannuation Policy provides you with the flexibility to enable you to tailor your Superannuation Scheme to suit various groups of employees. Employers can receive a full tax deduction for contributions up to 15% of an employee's salary into the Reliance Group Superannuation Policy arrangement.

Our investment options are: 1. Capital Secure Fund: The investment objective of the Capital Secure Fund is to maintain the value of all contributions (net of charges) and all interest additions. The Policyholder may allocate up to 20% of their investment at any time under this fund. The asset allocation limits under this fund are 100% Government Securities and Bank Deposits with duration of less than 180 days. 2. Balanced Fund: The investment objective of the Balanced Fund is to provide Policyholders with investment returns which exceed the rate of inflation in the long-term while maintaining a low probability of negative investment returns. The asset allocation limits are: 80% minimum in Government Securities and Corporate Bonds & 20% maximum in Equities.

37

3. Growth Fund:
The investment objective of the Growth Fund is to provide Policyholders with investment returns which exceed the rate of inflation in the long-term while maintaining a moderate probability of negative investment returns. The asset allocation limits under the fund are 60% minimum in Government Securities, Corporate Bonds and Bank Deposits & 40% maximum in Equities.

Switching: Transferring (switching) assets from one Investment Fund to another can be done at any time. You can make up to four switches free of charge each year. You may redirect future contributions to a different asset mix. The flexibility is yours.

Discontinuance of due contributions: The contributions can be paid monthly, quarterly, half yearly or yearly. There is a grace period of 30 days (15 days if the contributions are paid monthly) for the payment of contributions. If the payment of contributions is discontinued within 3 years from the inception of the Policy, the Policyholder can revive the Policy within the period of revival allowed. The Policy will continue to participate in the performance of the fund chosen by the Policyholder during this period. If the Policy is not revived during the period of revival, the Policy will be terminated and the Surrender Value if any shall be at the end of the allowed period of revival. If the payment of contributions is discontinued after paying the contributions for at least three consecutive years, the Policyholder can revive the Policy within the period of revival allowed. The Policy will continue to participate in the performance of the fund chosen by the Policyholder. If the Policy is not revived during the period of revival, the Policy will be terminated and the

38

Surrender Value, if any shall be paid at the end of the allowed period of revival. However, when the Fund Value reaches an amount equal to One full years contribution, the Contract shall be terminated by paying the Fund Value. The Policyholder may revive the Policy at anytime during five years from the date of first unpaid contribution by re-commencing the payment of contributions.

Individuals plans
Reliance offers 16 individuals plans. These are: 1. Reliance Automatic Investment Plan 2. Reliance Money Guarantee Plan 3. Reliance Endowment Plan 4. Reliance Special Endowment Plan 5. Reliance Cash Flow Plan 6. Reliance Child Plan 7. Reliance Whole Life Plan 8. Reliance Golden Years Plan 9. Reliance Golden Years Plan Value 10. Reliance Golden Years Plan Plus 11. Reliance Market Return Plan

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12. Reliance Term Plan 13. Reliance Simple Term Plan 14. Reliance Special Term Plan 15. Reliance Credit Guardian Plan 16. Reliance Special Credit Guardian Plan 17. Reliance Connect To Life Plan

Details are given below of some individuals plan:Reliance Automatic Investment The Key benefits of Reliance Automatic Investment Plan are as follows: A smart plan which adapts to your changing risk profile with increasing age Option to lower the average cost of units through systematic transfer of your funds Flexibility to switch between funds and plans Options for additional Insurance cover available through riders

Key Features Reliance Automatic Investment Plan Two plan options to choose from Ready-made and Tailor-made Life Stage asset allocation to ensure automatic change in investment patterns, under the Ready-made Plan option

40

Freedom to decide your own fund mix based on your risk profile under the Tailor-made Plan

Regular, limited, single premium paying options Unmatched flexibility through our Exchange Option Liquidity in the form of partial withdrawal Option to avail of Accidental Death Benefit, Accidental Total, Premium Disability and Term Insurance riders

How does this Plan work?

As a customer you will have the liberty to choose between the Ready-made and Tailor-made Plan options. The premium contributions made by you, net of Premium Allocation Charges and Sum Assured Related Charges are invested in fund/funds of your choice and units are allocated depending on the price of units for the fund/funds. The Fund Value is the total value of units that you hold in the fund/ funds. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units, whereas the Fund Management Charge is priced in the Unit Value.

Reliance Automatic Investment Plan at a glance

Basic Plan Minimum Maximum

Age at Entry Age at Maturity

30 days 18 years last birthday

65 years last birthday 80 years last birthday

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Premium Term

Paying 5 years

30 years

Min Sum Assured

Regular / Limited Premium: Annualized Premium for 5 years or Annualised Premium for half of the policy term, whichever higher Single Premium 125% of the single premium amount

Max Sum Assured No Limit

Benefit Illustration To enable a better understanding on how the plan works, please refer to the below table for Regular Premium.

Age of the customer Annual Premium Paid Policy Term Premium Paying Term Sum Assured Maturity Values: at 6% investment return at 10% investment return

30 25,000 15 15 1,87,500 4,95,104 6,94,534

35 25,000 15 15 1,87,500 4,94,413 6,93,530

40 25,000 15 15 1,87,500 4,93,017 6,91,444

45 25,000 15 15 1,87,500 4,90,506 6,87,755

Minimum Premium
Yearly Regular Premium option Limited Premium Single Premium Min Top Up amount Half Yearly Quarterly Monthly

Rs 10,000 Rs 20,000 Rs 25,000 Rs 2,500

Rs 5,000 Rs 10,000

Rs 2,500 Rs 5,000

Rs 1,000 Rs 2,000

Reliance Money Guarantee Plan Under this plan the investment risk in the investment portfolio is borne by the policyholder.

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Yes, it's a trio the pace setter plan, which promises Life Protection, an opportunity to gain control over your investments along with protection of downside risk! For the select few like you, the Reliance Money Guarantee Plan is a Unit Linked product addressing comprehensive need to strike that perfect balance of Protection and Savings, that you deserve as you grow successfully. The Reliance Money Guarantee Plan is a Regular Premium Unit Linked Policy which guarantees the entire premium (including premiums for top- ups) paid by you. This is a plan which helps you reap all the benefits of a rising market simultaneously protecting you from the downside risk of the market. Key Features Capital Guarantee the sum of all premiums paid is guaranteed on maturity or on death before the maturity. Capital Guarantee is available on both the basic premiums as well as on top-up premiums Unique Return Shield feature to protect your returns Choice to invest from 3 pre-packaged investment fund options Unmatched flexibility through our Exchange Option to move between the Reliance Money Guarantee suites of products offered, as you grow up the ladder Liquidity in the form of partial withdrawals from top-up fund Option to package with Accidental Death & Disability and Term Insurance riders

How does this Plan work? The premium contributed by you net of Premium Allocation Charges and Miscellaneous Charge is invested in fund option of your choice for a specified period of time as selected by you and units

43

are allocated depending on the price of units for the fund/funds. The Fund Value is the total value of units that you hold in the fund. The Policy has a minimum Guaranteed Fund Value which is equal to total of all premiums paid (excluding any additional and extra premiums if any), to be payable on survival to maturity or earlier death. The amount of top-up premiums paid is also guaranteed on death provided there is no partial withdrawal. The amount of top-ups premium is guaranteed on maturity provided the top-ups premium was paid at least 10 years before the date of maturity and there is no partial withdrawal. The Sum Assured under the Policy is fixed on the basis of the selected annual premium and Policy Term. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units whereas the Fund Management Charge is priced in the Unit Value. The premiums for riders, if selected, are payable over and above the premium for the basic Policy. Benefits in Details Capital Guarantee: The plan offers Capital Guarantee provided the Policy is kept in full force by payment of due premiums on time. Capital Guarantee under the Basic Plan: Premiums paid under the Basic Plan are guaranteed on the maturity of the Policy or on death during the Policy Term. Capital Guarantee under the Top-Up premiums: Each top-up premium paid is guaranteed on death during the Policy Term provided there are no partial withdrawals from that top-up. Each top-up premium paid is guaranteed on maturity of the Policy provided the Policy Term is greater than ten years, there are no partial withdrawals from that top-up and the top-up was paid ten years before the maturity date.

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Life Cover Benefit: The amount of Death Benefit depends on the age of the Life Assured at the time of death If the age of the Life Assured at the time of death is more than 12 years last birthday while the Policy is in force, the Company will pay the sum of: Higher of (Sum Assured, Fund Value as on date of intimation of death under Basic Plan, Premiums paid under the Basic Plan excluding any extra or additional premiums paid.) And Higher of (Fund Value as on date of intimation of death under top- ups and top-up premium paid provided no partial withdrawal is made from that top-up) However if the Life Assured's age at the time of death is less than or equal to 12 years last birthday while the Policy is in force, the Death Benefit will be the sum of: Higher of (Fund Value as on date of intimation of death under Basic Plan and premiums paid under and Higher of (Fund Value as on date of intimation of death under top- ups and top-up premium paid provided no partial withdrawal is made from that top-up) The Policy terminates on payment of the Death Benefit. Maturity Benefit: The Maturity Benefit is the sum of Higher of (Fund Value under Basic Plan and Premiums paid under Basic Plan excluding any extra or additional premiums paid) and Maturity Benefit under Top-Up If Policy Term is greater than ten years, the Maturity Benefit under top-up is the higher of ( Fund Value under the top-up and top-up premium paid provided there is no partial withdrawal from that top-up)If Policy Term is ten years, the Maturity Benefit under the top-up is the Fund Value under 45 the Basic Plan excluding any extra or additional premiums paid)

the top-up. The Policy Terminates on payment of the Maturity Benefit. Sum assured The fixed Sum Assured under the Basic Plan will be calculated as the amount of annual premiums payable for half the Policy Term Rider Benefit: You can add Accidental Death & Accidental Total and Permanent Disablement Benefit Rider & Term Life Insurance Benefit Rider.

What are the different fund options?

Funds available in respect of Basic Plan and top-up premium The plan offers three funds for Basic Plan and top-ups - Fund D, Fund E and Fund F. You have the option to decide your own fund mix with respect to premiums under the Basic Plan and top-ups.

Funds available in respect of Return Shield Option Return Shield Fund will be available if Return Shield Option is selected. The returns earned under the Basic Plan and top-ups will be transferred to Return Shield Fund if Return Shield option is selected.

Funds available during settlement period If you have opted for the settlement option, then Fund C would apply by default during the settlement period.

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The Asset Allocation and investment objective of each of the pre-packaged funds is given below:

Asset Allocation Type of Fund Fund D Investment Objectives Asset Category Range (%)

Target (%)

The investment objective of Fund D is to Money Market Instruments provide investment returns that exceed the Debt Securities such as Gilts,

0 - 20

0 60

rate of inflation in the long term while Corporate Debtexcluding Money 0 - 100 of Market Instruments negative returns in the short term. The risk Equities maintaining moderate probability appetite is defined as 'moderate'.
Fund E

0 - 40 0 - 20

40 0 50

The investment objective of Fund E is to Money Market Instruments significantly higher than the inflation rate, Corporate Debtexcluding Money equity Market Instruments investments, while recognizing that there is Equities through high exposure to some probability of negative returns in the short term. The risk appetite is 'moderate to high'.

provide, in the long term, returns which are Debt Securities such as Gilts, 0 - 100

0 - 50

50

Fund F

The investment objective of Funds is to Money Market Instruments significantly higher than the inflation rate, Corporate Debtexcluding Money equity Market Instruments investments, while recognizing that there is Equities through high exposure to some probability of negative returns in the short term. The risk appetite is 'moderate to high'.

0 - 20

0 40

provide, in the long term, returns which are Debt Securities such as Gilts, 0 - 100

0 - 60

60

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The Asset allocation and Investment Objective under the Return Shield Fund is given below:
Type of Fund Return Shield Investment Objectives Asset Category Asset Allocation Range (%) Target (%)

The investment objective of the Return Money Shield Fund is to provide steady Instruments investment returns achieved through Government

Market 0 - 20 Securities

20

100% investment in Debt Securities, and approved securities while maintaining moderate probability Corporate Bonds and other of negative returns in the short term. Debt Instruments The risk appetite is defined as 'moderate'.

0 - 100

40

0 - 60

40

The Asset Allocation and Investment Objective under Fund C is given below:
Type of Fund Fund C Investment Objectives Asset Category Asset Allocation Range (%) Target (%)

The investment objective of Fund C is exceedthe rate of inflation in the long term while maintaining a

Money Market 0 - 20 Debt Securities as Gilts, 0 - 100

to provide investment returns that Instruments low such

probability of negative returnsin the Corporate short term. The risk appetite is defined Debtexcluding as 'low to moderate'. Money Instruments. Market

80

Equities 0 - 20 20 Whilst, every attempt would be made to attain target levels prescribed above, it may not be

possible to maintain the prescribed target at all times owing to market volatility, availability of market volumes and other related factors

48

The target may be attained on a best effort basis. However the Asset Allocation will always fall within the Asset Allocation Range mentioned in respect of each fund.

Unit pricing & Cut-off Timings Value of Units: The computation of Unit Value will be based on whether the Company is purchasing (Appropriation Price) or selling (Expropriation Price) the Assets in order to meet the day to day transactions of Unit Allocations and Unit Redemptions i.e. the Company shall be required to sell/purchase the Assets if Unit Redemptions/Allocations exceed Unit Allocations/Redemptions at the Valuation Date.

The Unit Price of each Fund will be the Unit Value calculated on a daily basis.

Total Market Value of Assets Plus(less) expenses incurred in the purchase (sale) of Assets plus Current Assets plus any accrued income net of Fund Management Unit Value = Charges less Current Liabilities less Provision Total Number of units on issue (before any new units are allocated(redeemed))

Redemptions:
In respect of valid applications received (e.g. surrender, maturity claim, switch out etc) up to 4.15 p.m. by the Insurer, the same day's closing NAV shall be applicable.

49

In respect of valid applications received (e.g. surrender, maturity claim, switch etc) after 4.15 p.m. by the Insurer, the closing NAV of the next business day shall be applicable.

Flexibility available under Reliance Money Guarantee Plan

Return Shield an innovative way to protect your returns This option is available to you during the term of the Policy. You can select or delete this option at any time during the term of the Policy. There will not be any charge for the Return Shield option under following circumstances; If the option is selected under Basic Plan on commencement of the plan If the option is selected under top-up premium at the time of payment of top-up premium Under all other circumstances, a fixed charge of Rs100 is payable every time the Return Shield option is selected. If this option is selected, the return earned on Basic Plan and Top-Ups during the month will be transferred to Return Shield Fund at the end of the Policy month. The operation of Return Shield option under Basic Plan is given below: The amount of returns to be transferred to Return Shield Fund will be determined separately for each Policyholder in respect of each of the tree funds D,E and F Fund The method used for determining the return to be transferred is given below : = Less Fund Fund Value) Value on on the last last working working day day of the of the previous Policy Policy month month

Less amount of inflows during the month The operation of Return Shield option under top-up premium(s) will be similar to that of Basic Policy.

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The amount will be transferred to Return Shield Fund at the prevailing Unit Price. Exchange Option: This option is available for existing Policyholders after completion of three Policy years from the date of commencement, Under this option, the Policy holder can transfer Policy Benefits (surrender, maturity etc.) either fully or partially to another plan. This option must be exercised at least 30 days before the date of receipt of benefit under the Policy.. The Terms and Conditions as specified in the opted Policy Document would apply to the Policy holder opting for the 'Exchange Option'. If a Policyholder is opting for the Reliance Money Guarantee plan under exchange option, the Allocation Charge in year of exchange will be 15 % of the annualised premium of Reliance Money Guarantee Plan. If the Exchange Option is used to pay top-ups in the Money Guarantee Policy, the Allocation Charge in the year exchange will be 1% of the top up amount. Pay top-ups: If you have received a bonus or some lump sum money you can use that as a top-up to increase the investments component in your Policy. Top-ups are allowed only if all basic premiums due till date are paid. At any time, the maximum amount of all top-up premiums allowed is restricted to 25% of the total basic regular premium paid till date. The minimum top-up premium amount is Rs 2,500. The amount of top-up premiums paid is also guaranteed on death provided there is no partial withdrawal. The amount of top-up premium is guaranteed on maturity provided the top-up premium was paid 10 years before the date of maturity and there is no partial withdrawal made from the top-up fund. Partial Withdrawals: These are allowed for units created by top-up premiums. There is lock-in period of three years under the top-ups from the date of payment of top-ups during which no partial withdrawal is allowed. The lock-in period is not applicable to Top-ups made during last three years of a Policy. After partial withdrawal, the original Tranche of that particular 51

top-up will lose the Capital Guarantee. Where Life Assured is minor, partial withdrawals will be allowed only after completion of age 18 years. No partial withdrawals are allowed for basic regular premium funds. Switching Option: You can switch the whole or part of the funds between funds D, E, F at any time during the Policy Term. You can also switch from Return Shield option to any one fund D, E and F. First four switches in any Policy year are free. If Return Shield option is selected switching from any of the funds D, E, F in to Return Shield option will be done at the end of every Policy month. Such switches will not be counted as part of the four free switches during the Policy year. Premium Redirection: You may instruct us in writing to redirect all the future premiums under a Policy in an alternative proportion to the various Unit Funds available. Redirection will not affect the allocation of premium(s) paid prior to the request. Settlement Options: This option enables you to take the maturity proceeds in the form of periodical payments after the Maturity Date instead of a lump sum on the Maturity Date. You can choose to redeem the units in your Unit Fund anytime up to 5 years from the date of maturity. Capital Guarantee is not available during this period. During this period, there will be no Life Cover. The only fund option available during the settlement period is Fund C. The maturity proceeds will automatically be transferred in to Fund C if settlement option is selected. The Policy will participate in the performance of units of Fund C. The Company will deduct Policy Administration Charges by cancellation of units. The Fund Management Charge will be priced in the Unit Value.

52

In the event of death during settlement period the Fund Value as on the date of intimation at the office will be paid to the nominee. ?In order to opt for this option the customer has to give notice of 30 days to the Company before the Maturity Date. During the settlement period, the investments made in the Unit Funds are subject to investment risks associated with Capital Markets and the Unit Prices may go up or down based on the performance of the fund and the factors influencing the Capital Market, and the Policyholder is responsible for his / her decisions. The investment risk during the settlement period will be borne by the Policyholder.

Convenient Premium Paying options you can pay the regular premiums in yearly, half yearly, quarterly and monthly mode and pay by cash, cheque, debit/credit card, ECS & direct debit. The minimum regular premium is Rs 10,000 for annual mode, Rs 5,000 for half-yearly, Rs 2,500 for quarterly and Rs 1,000 for monthly mode. The minimum top-up premium is Rs 2,500.

53

What if I want to discontinue the Policy?

Basic Plan Age at Entry Age at Maturity Policy Term Optional Riders Term Life Insurance Benefit Rider Age at Entry Age at Maturity Policy Term Sum Assured Accidental Death and Accidental Total and 18 23 years years last last 18 23 years years last last birthday birthday 5 years 25,000 59 years last birthday 64 years last birthday 30 years Up to basic Policy Sum Assured Minimum 30 days 18 years last birthday 10 years Maximum 55 years last birthday 80 years last birthday 30 years

Permanent Disablement Rider Age at Entry Age at Maturity Policy Term Sum Assured birthday birthday 5 years
25,000

60 years last birthday 64 years last birthday 30 years

Up to basic policy Sum Assured subject to a maximum of Rs 50,00,000 on accidental death and Rs 500,000 per annum on total permanent disability.

You may surrender your Policy at any time after three years from commencement.

54

Full Surrender Value under Basic Plan: The Surrender Value will be the Fund Value
including Return Shield Fund if selected as on the date of intimation of surrender under Basic Plan less Surrender Charge as given below. On surrender of Basic Plan, any attaching Top-Ups will also be surrendered. No partial Surrender Value is available under Basic Plan.
Year of surrender Basic Surrender Charge as % of Fund Value of Plan 1 to 3 2 3 4 5 6+ 5% 3% Nil Surrender Value not available including Return Shield Fund if selected

Full Surrender Value or Partial Withdrawal Value under Top-Up: This will be
available on completion of three years from the date of payment of top-ups. The lock-in period of three years will not be applicable to top-ups paid in the last three years of the plan. The full Surrender Value or Partial Withdrawal Value is equal to the Fund Value being surrendered or being withdrawn. There is no Surrender Charge or Partial Withdrawal Charge. If a partial surrender is taken from the top-up, the Capital Guarantee on death and maturity (i.e. the minimum Death Benefit of top-up premium on death at any time during the Policy Term and the minimum Maturity Benefit of top-up premium paid provided a period of at least 10 years has elapsed from the date of payment of top-up) will cease immediately on that Tranche of top-up.

Charges under the plan

Premium Allocation Charges: This is a percentage of the premium appropriated towards charges from the premium received. 55

Year Year 1 Year 2 Year 3 onwards

Premium 30% 7% 5%

Allocation

Charge

( as percentage of premium amount)

For top-up premium the Allocation Charge is 2%. In case of policies under Exchange Option, the Allocation Charge in year of exchange will be 15% of the annualised premium of Reliance Money Guarantee plan. During subsequent years, the Allocation Charges mentioned in the above table will apply.

Policy Administration Charges: Rs 40 will be deducted per month per Policy (charged
monthly through cancellation of units).

Fund Management Charges: The Fund Management Charges under each fund are given
below:
Fund Name Fund D Fund E Fund F Return Shield Fund DC Annual Rate 1.35% p.a. 1.38% p.a. 1.40 p.a. 1.25% p.a. 1.30% p.a.

56

The Fund Management Charge on each day is three hundred and sixty fifth of the Annual Charge and will be deducted from the Assets of the Unit Linked Fund. Switching Charge: First four switches in any Policy Year are free. There will be a charge of Rs100 per switch on subsequent switches. Charge for Return Shield Option: There will not be any charge for the Return Shield option under following circumstances: If the option is selected under Basic Plan on commencement of the plan If the option is selected under top-up at the time of payment of top-up Under all other circumstances, a fixed charge of Rs 100 is payable every time the Return Shield option is selected Mortality Charge: The Mortality Charges is based on your attained age, are determined using 1/12th of the charges mentioned in the Mortality Charge table below and are deducted by canceling the units from your fund every month. Surrender Charge: This charge is levied on the Fund Value at the time of surrender of the Policy as under:

Year 1 to 3 4 5 6 onwards

of

Surrender

of

Surrender Not allowed 5% 3% Nil

Charge

as

Basic Plan/top-ups

a percentage of fund value

Service Tax & other applicable charges: These charges are to be levied on the Mortality Charge and on Rider Premiums. The level of this charge will be as per the rate of Service Tax along with

57

the other applicable taxes/ charges on risk premium, if any, as declared by the Government from time to time. The current rate of Service Tax (including the Education Cess on Service Tax) on risk premium is 12.24%. Currently, this charge is borne by the Company. However, the Company reserves the right to pass on this charge as well as other charges/taxes to the Policyholder in future. Miscellaneous Charge: Fixed Miscellaneous Charge of Rs 2 per Rs 1000 Sum Assured will be collected on inception of the Policy. Premium for Rider Benefits: Premium for Rider Benefits will be collected over and above the premium under Basic Plan. Recovery of Charges The one time Miscellaneous Charge on commencement of the Policy and the Allocation Charges will be deducted from the premium amount before allocation of units. The Fund Management Charges will be priced in the Unit Price of each Fund. Mortality and Policy Administration Charges will be collected monthly in advance by cancelling the units at prevailing Unit Price. Switching Charge and Return Shield Charge will be collected at the time of transaction by cancelling the units at prevailing Unit Price. The Surrender Charge, if applicable, will be deducted from the Fund Value as a percentage of the Fund Value. Rider premiums will be collected over and above the premiums under Basic Plan and will not be deducted through cancellation of units. In the event that units are held in more than one fund, including Return Shield Fund, the cancellation of units will be effected in the same proportion as the value of units held in each Fund. In case the Fund Value in any Fund Value goes down to the extent that it is not sufficient to 58

support the proportionate applicable monthly charges, then the same shall be deducted from the Fund Value of the other funds proportionately. Change in rate of charges The revision in charges as mentioned below will take place only after obtaining specific approval of the IRDA. A notice of three months will be given to the Policyholders before any increase in the charges. If the Policyholder does not agree with the modified charges, he/she shall be allowed to withdraw the units in the plan at the then prevailing Unit Value after paying it if any and terminate the Policy. The Fund Management Charge may be increased up to 2.50% p.a. The Policy Administration Charge may be increased up to Rs75 per month per Policy. The Switching Charge, charge for selecting STP option can be increased up to Rs 1000 per transaction. The Surrender, Premium Allocation, Mortality, Miscellaneous Charge and premium rates under riders are guaranteed for the term of the Policy.

Reliance Endowment plan

Reliance Endowment Plan gives you just the financial independence to realise your dreams in the future. It lets you decide how much you would like to set as your sum assured based on your current financial position and your expected future expenses. Key Features On maturity receive Sum Assured plus bonuses Wealth creation through bonus additions More value for your money by way of High Sum Assured Rebate

59

Increase your insurance protection by adding Term Cover Choose to pay regular or single premium Choose to add the benefit of two riders - Critical Illness Rider and Accidental Death Benefit & Total and Permanent Disablement Rider

Choose to avail of a Policy Loan after three full years of premium payment

How does this Plan work?

You pay premium every year for the entire term and get Sum Assured plus accumulated bonuses at maturity. On death, your Beneficiary will get the Sum Assured plus accumulated bonuses.

Benefits Maturity Benefit: On maturity you get Sum Assured plus accumulated bonuses (if any) till that date. Life Cover Benefit: In the unfortunate event of loss of life, your family will receive the Sum Assured plus accumulated bonuses (if any) till that date. Rider Benefit: You also have the option to add three additional benefits to customize the Policy as per your needs for the regular premium plan a. Term Life Insurance Benefit Rider b. Accidental Death Benefit & Total and Permanent Disablement Rider 60

c. Critical Illness Rider

Term Life Insurance Benefit Rider

Add the advantage of the Term Life Insurance Benefit rider to your basic Policy and increase risk coverage. In the event of unfortunate loss of life the Term Life Insurance Benefit is payable and the amount payable is equal to the rider Sum Assured. There is no Maturity Benefit.

Term Insurance Minimum / Maximum Age at entry Maximum Age at expiry Sum Assured Policy Term

18 / 59 64 yrs (policy anniversary immediately following age) Rs 1,00,000 Equal to basic policy sum assured Equal to basic policy term

Accidental Death Benefit & Total and Permanent Disablement Rider Accidents are unfortunate and sometimes fatal. You can customise your basic Policy with an Accidental Death Benefit & Total and Permanent Disablement Rider. The Accidental Death Benefit is payable if death occurs directly as a result of an accident and is intimated within 90 days of the occurrence. The Benefit payable is equal to the Rider Sum Assured. The minimum Sum Assured is Rs 25,000 and the maximum under all Policies taken together is Rs 50, 00,000. 61

The Total and Permanent Disablement Benefit is payable if the Life Assured becomes totally and permanently disabled directly as a result of an accident. The Disability Benefit is equal to the basic Sum Assured paid in ten equal annual installments Total and Permanent Disablement is defined as the total and irrecoverable loss of sight of both eyes, or loss by severance of two limbs at or above wrist or ankle, or total and irrecoverable loss of the sight of one eye and loss by severance of one limb at or above wrist or ankle for a period of at least six months. Inbuilt Waiver of Premium If the Life Assured becomes totally and permanently disabled, then Reliance Life Insurance will waive all future premiums under the basic Policy and riders up to a limit of Rs 40,000 p. a.

Accidental Death & Disability Benefit Age at entry Age at expiry Sum Assured

18 yrs 25 yrs Rs 25,000

59 yrs 64 yrs Rs 50,00,000 (subject to a maximum of basic policy sum assured)

Exclusions The Company will not pay any Accidental Death Claim or Total and Permanent Disablement Claims which results directly or indirectly from any one or more of the following: An act or attempted act of self-injury, Participation in any criminal or illegal act, Being under the influence of alcohol or drugs except under direction of a registered medical practitioner,

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Racing or practicing racing of any kind other than on foot, Flying or attempting to fly in, or using or attempting to use, an aerial device of any description, other than as a fare paying passenger on a recognised airline or charter service,

Participating in any riot, strike or civil commotion, active military, naval, air force, police or similar service, or

War, invasion, act of foreign enemies, hostilities or war like operations (whether war be declared or not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped power or any act of terrorism or violence.

Age at entry Age at expiry Sum Assured Minimum policy term

18 yrs 23 yrs Rs 1,00,000 5

Critical Illness 55 yrs 64 yrs Rs 10,00,000 (subject to a maximum of basic policy sum
assured)

Exclusion with Critical Illness Cancer: any CIN stage (cervical intraepithelial neoplasia); any pre-malignant tumour; any noninvasive cancer (cancer in situ); prostate cancer stage 1 (T1a, 1b, 1c); all skin cancers including malignant melanoma stage IA (T1a N0 M0); any malignant tumour in the presence of any Human Immunodeficiency Virus. Heart Attack: Non-ST-segment elevation myocardial infarction (NSTEMI) with elevation of Troponin I or T; other acute Coronary Syndromes.

63

Stroke: Transient ischemic attacks (TIA); neurological symptoms due to migraine. Coronary Artery (Bypass) Surgery: Angioplasty and/or any other intra-arterial procedures; keyhole surgery. Paralysis: Paralysis due to Guillain-Barr-Syndrome. Waiting and Survival period The Company will not pay the Critical Illness Benefit if: The critical illness begins prior to or within six months of the commencement date or date of reinstatement of the Benefit - Waiting Period Death from critical illness takes place within 30 days of the onset of the same Survival Period Flexibility These riders may be attached to your Policy at the beginning or at any Policy Anniversary during the term of the Contract, subject to underwriting conditions prevailing at that time. Sum assured for Critical Illness Rider may be increased or decreased by the Policyholder: The increase is subject to underwriting conditions Once decreased, further increases will not be allowed

The Contract can be terminated and opted for only once, by the Policyholder at any time. Though above are general conditions of the rider, we may specify restrictions (like time of exercise) on the above options. Such restrictions would be filed along with the based product filing.

64

Sample Illustration: The tables below show the indicative annual premiums for individual Life Assured across different Sum Assured and ages for a Policy Term of 20, 25 and 30 years.

Sum Assured: 1 Lakh Age\Term 30 35 40 45 20 25 30

Sum Assured: 3 Lakh 20 25 30 20

Sum Assured: 5 Lakh 25 30

4814 4897 5039 5273

3733 3842 4022 4318

3052 3192 3421 3799

14142 14391 14817 15519

10899 11226 11766 12654

8856 9276 9963 11097

23070 23485 24195 25365

17665 18210 19110 20590

14260 14960 16105 17995

Indicative Maturity Benefit: The table below shows the indicative Maturity Benefits for different Sum Assured levels for an individual across different terms.

Maturity Benefit (Rs) @ 6%* Sum Insured\Term Rs 100,000 Rs 300,000 Rs 500,000 20 25 30 20

Maturity Benefit (Rs) @ 10%* 25 30

180611 541833 903056

209378 628133 1046889

242726 728179 1213631

320714 962141 1603568

429187 1287561 2145935

574349 1723047 2871746

(The above Maturity Benefits are calculated for an illustrative gross investment return of 6% & 10% as stipulated by IRDA.)

What is the Policy Term?

Minimum Policy Term: Maximum Policy Term:

5 years Regular Premium - 35 years (Single)

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Premium

15 years

Who can buy this product?

Minimum age at entry: Maximum age at entry: Minimum age at maturity: Maximum age at maturity:

5 years 65 years 18 years 75 years

What is the Sum Assured?

Minimum Sum Assured: Premium it is determined Maximum Sum Assured: Entry age 18 years and above

Regular Premium - Rs 25,000 For Single by the minimum premium Entry age below 18 years - Rs 5,00,000 No Limit

Savings and accumulation through bonuses The Company will declare compounded reversionary bonus which is payable at maturity or on death whichever is earlier. More value for money High Sum Assured Rebate Reliance Endowment Plan offers an attractive premium discount for Sum Assured over and above Rs 99,999. For example, as per the tabular premium rates, the Annual Premium for a 30 year old male, a 25 year policy of Rs 5 lakh Sum Assured comes to Rs 19,165 before the High Sum Assured Rebate. After the High Sum Assured Rebate, the premium is Rs 17,665.
Sum Assured Range High Sum Assured Rebate

Rs 100,000 Rs 249,000

Re 1 per 1,000 sum assured

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Rs 250,000 Rs 499,000 Rs 500,000 Rs 9,99,000 Rs 10,00,000 and above

Rs 2 per 1,000 sum assured Rs 3 per 1,000 sum assured Rs 4 per 1,000 sum assured

Reliance Cash Flow Plan

While most insurance plans block your money for a certain period of time, Reliance Cash Flow Plan gives you the double benefit of life insurance along with easy liquidity through lump sum cash. It provides money periodically when you need it. It lets you live life to the fullest today and at the same time, helps you stay protected for tomorrow by giving you the flexibility of receiving a specified percentage of the Sum Assured at specified intervals. Key Features Easy Liquidity - Get periodic cash flows at the end of the fourth year and thereafter at the end of every three years Wealth creation through bonus additions On maturity receive accumulated bonuses along with final lump sum payout More value for your money by way of High Sum Assured Rebate Full Sum Assured plus bonuses in case of your unfortunate death. This is over and above the Survival Benefits already paid

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Option to add two riders Critical Illness Rider and Accidental Death Benefit & Total and Permanent Disablement Rider

How does this Plan work?

You pay premium every year for the entire term and get Survival Benefits at periodical intervals as mentioned below. On death, your Beneficiary will get the full Sum Assured, plus accumulated bonuses, over and above the Survival Benefits already paid to you. Benefits Survival Benefit: Get a percentage of the Sum Assured on the fourth anniversary and on every third Policy Anniversary till maturity. Maturity Benefit: On maturity you get the remaining percentage of the Sum Assured plus accumulated bonuses. Life Cover Benefit: In the unfortunate event of loss of life, your Beneficiary will receive the full Sum Assured plus accumulated bonuses till that date. Rider Benefit: You also have the option to add two additional benefits to customize the Policy as per your needs: 68

Accidental Death Benefit & Total and Permanent Disablement Rider Critical Illness Ride Death Benefit & Total and Permanent Disablement Rider

Accidental

Accidents are unfortunate and sometimes fatal. You can customise your basic Policy with an Accidental Death & Total and Permanent Disablement Benefit Rider. The Accidental Death benefit is payable if death occurs directly as a result of an accident and is intimated within 90 days of the occurrence. The Benefit payable is equal to the Rider Sum Assured. The minimum Sum Assured is Rs 25,000 and the maximum under all Policies taken together is Rs 50, 00,000. The Total and Permanent Disablement Benefit is payable if the Life Assured becomes totally and permanently disabled directly as a result of an accident. The Disablement Benefit is equal to the basic Sum Assured paid in ten equal annual installments Total and Permanent Disablement is defined as the total and irrecoverable loss of sight of both eyes, or loss by severance of two limbs at or above wrist or ankle, or total and irrecoverable loss of the sight of one eye and loss by severance of one limb at or above wrist or ankle for a period of at least six months

Inbuilt Waiver of Premium If the Life Assured becomes totally and permanently disabled, then Reliance Life Insurance will waive all future premiums under the basic Policy and riders up to a limit of Rs 40,000 p. a.

Accidental Death Benefit &

Total and Permanent

Disablement Rider

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Age at entry Age at expiry

18 yrs 25 yrs Rs 25,000

59 yrs 64 yrs Rs 50,00,000 (Basic Policy Sum Assured subject to a maximum of Rs 50,00,000 per life)

Sum assured

Exclusions The Company will not pay any Accidental Death Claim or Total and Permanent Disablement Claims which results directly or indirectly from any one or more of the following: An act or attempted act of self-injury, Participation in any criminal or illegal act, Being under the influence of alcohol or drugs except under direction of a registered medical practitioner, Racing or practicing racing of any kind other than on foot, flying or attempting to fly in, or using or attempting to use, an aerial device of any description, other than as a fare paying passenger on a recognized airline or charter service, Participating in any riot, strike or civil commotion, active military, naval, air force, police or similar service, or War, invasion, act of foreign enemies, hostilities or war like operations (whether war be declared or not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped power or any act of terrorism or violence. Exclusion with Critical Illness Cancer: Any CIN stage (cervical intraepithelial neoplasia); any pre-malignant tumour; any noninvasive cancer (cancer in situ); prostate cancer stage 1 (T1a, 1b, 1c); all skin cancers including

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malignant melanoma stage IA (T1a N0 M0); any malignant tumour in the presence of any Human Immunodeficiency Virus. Heart Attack: Non-ST-segment elevation myocardial infarction (NSTEMI) with elevation of Troponin I or T; other acute Coronary Syndromes. Stroke: Transient ischemic attacks (TIA); neurological symptoms due to migraine. Coronary Artery (Bypass) Surgery: Angioplasty and/or any other intra-arterial procedures; keyhole surgery. Paralysis: Paralysis due to Guillain-Barr-Syndrome. Waiting and Survival Period The Company will not pay the Critical Illness Benefit if: The critical illness begins prior to or within six months of the commencement date or date of reinstatement of the Benefit - Waiting Period Death from critical illness takes place within 30 days of the onset of the same Survival Period. Flexibility These riders may be attached to your Policy at the beginning or at any Policy Anniversary during the term of the Contract, subject to underwriting conditions prevailing at that time. Sum Assured for Critical Illness Rider may be increased or decreased by the Policyholder:

The increase is subject to underwriting conditions Once decreased, further increases will not be allowed

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The Contract can be terminated and opted for only once, by the Policyholder at any time. Though above are general conditions of the rider, we may specify restrictions (like time of exercise) on the above options. Such restrictions would be filed along with the based product filing.

When & how much of Fixed Benefits paid?

Money Back survival benefits paid per Rs.1,000 sum assured on survival to the end of year 4 7 10 13 16 19 22 25 28 31 34 7 10 13 16 19 22 25 28 31 34

Term

500 333 250 200 167 143 125 111 100 90.9

500 333 250 200 167 143 125 111 100 90.9 333 250 200 167 143 125 111 100 90.9 250 200 167 143 125 111 100 90.9 200 167 143 125 111 100 90.9 167 143 125 111 100 90.9 143 125 111 100 90.9 125 111 100 90.9 111 100 90.9 100 90.9 90.9

Sample Illustration: The tables show the indicative premiums for an individual Life Assured across different Sum Assured for a Policy Term of 16, 25 and 31 years

Sum Assured: 1 Lakh Age\Term 30 35 40 45 16 25 31

Sum Assured: 3 Lakh 16 25 31

Sum Assured: 5 Lakh 16 25 31

8580 8700 8905 9320

5950 6140 6445 7010

5045 5295 NA NA

25440 25800 26415 27660

17550 18120 19035 20730

14835 15585 NA NA

41900 42500 43525 45600

28750 29700 31225 34050

24225 25475 NA NA

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What is the Policy Term?

Minimum Policy Term: Maximum Policy Term:

7 years 34 years

Who can buy this product?

Minimum age at entry: Maximum age at entry: Minimum age at maturity: Maximum age at maturity:

15 years 63 years 22 years 70 years

What is the Sum Assured?

Minimum Sum Assured: Maximum Sum Assured:

Rs 25,000 No Limit

Savings and accumulation through bonuses The Company will declare simple reversionary bonus which is payable at maturity or on death, whichever is earlier. More value for money High Sum Assured Rebate Reliance Cash Flow Plan offers an attractive premium discount for Sum Assured over and above 99,999 as mentioned below. For example, as per the tabular premium rates, the annual premium for a 30 year old male for a 25 year Policy for Rs 5 lakh Sum Assured comes to Rs 30,250 before the High Sum Assured Rebate. After the High Sum Assured Rebate, the premium is Rs 28,750.v

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Sum Assured Range

High Sum Assured Rebate

Rs 100,000 Rs 249,000 Rs 250,000 Rs 499,000 Rs 500,000 Rs 9,99,000 Rs 10,00,000 and above

Re 1 per 1,000 sum assured Rs 2 per 1,000 sum assured Rs 3 per 1,000 sum assured Rs 4 per 1,000 sum assured

Can I take a loan against my Policy?

No loan is available under this Policy

What happens if I discontinue paying premium?

During the first three years, if premiums are not paid within the grace period the Policy will lapse. After the first three years if premiums are not paid within the grace period the Policy will be made paid up and the Sum Assured will be reduced, firstly, in the proportion of completed duration to Original Policy Term and Secondly, by the amount of periodic lump sum payments already made. Any accumulated bonuses attached to this Policy will remain attached in full. Once this Policy becomes paid-up, no further bonuses are paid. You will receive the paid-up Sum Assured plus bonuses on the maturity date of the Policy or in the event of loss of life. Once the Policy becomes paidup no further Survival Benefits are paid.

What if I want to discontinue the Policy?

74

We provide you the option to surrender your Policy and receive the Surrender Value. If your Policy has accumulated any bonuses, then you will also receive the cash value of that total amount upon surrendering your Policy. Your plan acquires a Surrender Value after 3 years premium payment and after three years has elapsed from date of commencement of Policy. We guarantee a minimum Surrender Value of 30% of the total premiums paid (excluding any extra premiums and premiums for additional benefits) subsequent to the first year premium, less the total of lump sum Survival Benefits already paid under this Policy. On surrender, the insurance protection provided under the Policy will also cease.

Can I revive a Policy which is lapsed?

A lapsed Policy can be reinstated for full benefits anytime before the date of maturity at terms and conditions required by the Company. Flexible Premium Payment Modes Yearly Half-Yearly Quarterly Monthly (with salary deduction schemes only)

Grace period There is a grace period of 30 days for payment of premium.

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Reliance Credit Guardian Plan Reliance Credit Guardian Plan ensures that your housing loans, personal loans or even outstanding credit card bills are paid in the event of untimely demise. Thus keeping you and your family protected from the burden and the worry of debt in such a situation. Key Features Different types of loans are covered under this Policy - housing Loans, Personal Loan, outstanding on credit cards etc Limited premium paying term Single & regular premium payment option Discount on premium rates for women

How does this Plan work?

You pay premium every year for the premium paying term you choose. The Sum Assured decreases for a given interest rate as mentioned in the Policy Document. On death, your Nominee will get the Sum Assured. No Survival Benefit is payable under this plan. Benefits In the unfortunate event of loss of life, the Nominee will receive the Sum Assured as per the Policy Schedule.

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Reliance Child Plan Reliance Child Plan helps you save systematically so that you can give your child the muchneeded financial security in the future. Simply put, Reliance Child Plan gives you the freedom to enjoy every moment with your child today, without worrying about his/her tomorrow.

Key Features Risk protection for you during the term of the Policy Accumulated bonus at the end of the Policy Term 25% of Sum Assured payable every year as lump sum benefit during the last four Policy anniversaries All future premiums are waived in the event of unfortunate loss of life Guaranteed Fixed Benefits continue even after loss of life of the Policyholder More value for your money by way of High Sum Assured Rebate Choose to add the benefit of two riders Critical Illness Rider and Accidental Death Benefit & Accidental Death Benefit & Total and Permanent Disablement Rider Policy participates in profit even after the loss of life of the Life Assured

How does this Plan work? You pay premium every year for the entire term and get guaranteed fixed benefits every year during the last four years of the Policy Term. On death, your Beneficiary will get the Sum Assured, guaranteed fixed benefits on specified dates and all future premiums will be waived.

77

All attached bonuses are payable at the end of the Policy Term and will remain attached to your Policy even after payment of Life Cover Benefit.

Benefits Life Cover Benefit: In the unfortunate event of loss of life, your Beneficiary will receive the Sum Assured immediately and all future premiums will be waived. Guaranteed Fixed Benefit: Get 25% of Sum Assured every year on the last four Policy Anniversaries irrespective of the survival of the Life Assured. For example if you have taken a Policy for Rs 1 lakh for 20 years, then fixed benefits payable will be Rs 25,000 each at the end of 17th, 18th, 19th and 20th year. Maturity Benefit: On maturity you get accumulated bonuses irrespective of the survival of the Life Assured. Rider Benefit: You also have the option to add two additional benefits to customize the policy as per your needs. Accidental Death Benefit & Total and Permanent Disablement Rider Critical Illness Rider

Accidental Death Benefit & Total and Permanent Disablement Rider Accidents are unfortunate and sometimes fatal. You can customise your basic Policy with an Accidental Death Benefit & Total and Permanent Disablement Rider.

78

The Accidental Death Benefit is payable if death occurs directly as a result of an accident and is intimated within 90 days of its occurrence. The Benefit payable is equal to the Rider Sum Assured. The minimum Sum Assured is Rs 25,000 and the maximum under all Policies taken together is Rs 50, 00,000. The Total and Permanent Disablement Benefit is payable if the Life Assured becomes totally and permanently disabled directly as a result of an accident. The Disability Benefit is equal to the basic Sum Assured paid in ten equal annual installments Total and Permanent Disablement is defined as the total and irrecoverable loss of sight of both eyes, or loss by severance of two limbs at or above wrist or ankle, or total and irrecoverable loss of the sight of one eye and loss by severance of one limb at or above wrist or ankle for a period of at least six months.

Reliance Connect 2 Life Plan Reliance Connect 2 Life Plan helps you build security & savings for a better tomorrow. As your income is likely to grow, you should also ensure that you have sufficient protection for your near and dear ones. Reliance Connect 2 Life Plan ensures that you have the option to upgrade your life
cover to keep pace with your changing lifestyle.

Key Features & Benefits Maturity Benefit: On survival of the life assured until maturity, the Plan pays the sum assured plus simple vested bonuses to the policyholder. 79

Death Benefit: In case of unfortunate death of the life assured before the maturity date, the Plan pays the sum assured plus simple vested bonuses to the nominee. Choice of two plans: At the time of initial purchase of Reliance Connect 2 Life Policy, you have two kinds of plans to choose from namely, Gold Plan and Silver Plan. The Reliance Connect 2 Life Gold Plan offers a life cover of Rs 2,00,000 initially. You may enhance your life cover to a maximum of Rs 10,00,000 in two stages by exercising your option. The Reliance Connect 2 Life Silver Plan offers a relatively lower life cover of Rs 1,00,000 initially. You may enhance your life cover to a maximum of Rs 5,00,000 in two stages by exercising your option. Options to enhance life cover: Under each of the above two plans, you have an option to enhance your life cover amount: At the end of one year from the date of initial purchase of Reliance Connect 2 Life Gold / Silver Plan, you are entitled to enhance your life cover by exercising your option to purchase an additional Reliance Connect 2 Life Policy. Provided you have exercised your option to enhance life cover at the end of the first year, you are entitled to enhance your life cover again at the end of the second year by purchasing an additional Reliance Connect 2 Life Policy.

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PART 2

81

INTRODUCTION OF TOPIC
Marketing strategies refers to product differentiation and product positioning are important strategies in marketing . under product differentiation strategy attempts are made to differentiate the product and related aspects from competitive products . so as to create a distinct image in positioning strategy the companys offering and image are so designed that they occupy a meaningful and better products, managing product lines and brands, managing support services, deciding price, selecting and managing distribution channels, managing dealer relation, managing advertising and other forms of promotional activities, etc. are the activities involved in operationalising marketing strategies. PROMOTIONAL ACTIVITIES: ADVERTIESING "Advertisements are sometimes spoken of as the nervous system of the business world ... As our nervous system is constructed to give us all the possible sensations from objects, so the advertisement which is comparable to the nervous system must awaken in the reader as many different kinds of images as the object itself can excite" Advertising effectiveness means different things to the groups responsible for its different effects. To the writer or artist, effective advertising is that which communicates the desired message. To the media buyer, effective advertising is that which reaches prospective buyers a sufficient number of times. To the advertising or marketing manager, effective advertising is that which, together with other marketing forces, sells his brand or product. To the general manager, effective advertising produces a return on his firms expenditure. In fact, effective advertising must achieve all four goals, delivering messages to the right audience, thereby creating sales at a profit. Most advertisers have begun only recently to set 82

goals in all four areas and measure progress toward them. Some advertisers have set communications and audience goals, and measured copy and media effects, but few advertisers have set dollar goals and measured sales and profit effects. The result is that advertising has rarely been a part of corporate planning. Thirty years ago, management was asking the same questions they ask today: Is my advertising working and what impact does it have on my sales? Can it be measured? Can our advertising and promotion be made accountable in the same manner as which one evaluates all of the other investments by our company? The answer to all three questions is yes. In fact, the techniques to deliver this degree of accountability and control have been around for more than 50 years and are industry standards.

There are methods to test every aspect of marketing promotion, sales support and media mix, and analytical tools to establish a direct relationship to sales for complete accountability. The key to this is applying a full advertising research curriculum. This requires involvement of both sales and marketing management and the advertising/promotions supplier coordinating their efforts with the researcher. It is a partnership. This may explain why so many from both the client and agency sides remain of the opinion that it cant be done. The fact is that a full curriculum can be implemented, is already integral to nearly every brand leader, and you can do it as well. It just takes a little planning and co-operation. Lets start from where it all began.

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RESEARCH METHODOLOGY
Research methodology is a strategy that guides a research in providing answers to research questions and for this, research survey is being done. Accuracy of the study depends on the systematic application of the method. The researcher has to decide the method to be used that helps him to get a desired direction in a systematic way. This study in the following manner.

Questionnaire Design
The questions were designed in an easily understandable way That the respondents may not have any difficulty in answering them. The questionnaire also contained a comments section. This section was included so as to get opinion of the people regarding the Reliance Life Insurance Company Limited

Random Sampling
Sampling can be defined as a part of population. Thus random sampling may be defined as the selection of a portion from the whole population in which each elements of the population has an equal chance of being selected. A more please definition is that each element in the population has a non-zero and known probability of selection a randomly drawn sample is an unbiased sample. In this research survey 50 people were surveyed at random to get the relevant information.

Sample Size
The sampling techniques used in this project are probability sampling techniques and the methods used in cluster sampling.

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Sampling Unit
The respondents who were asked to fill out questionnaires are the sampling units

Sample size:
The sample size was restricted to only 50 between age group of 25-40,which comprised of mainly peoples from different regions of India.

Sampling Area:
India.

Data Collection
Structured Questionnaire In this collection data, structured questionnaire is used as a tool by asking a set of standardized questions to know the effect of Life Insurance Advertisement and behavior of the people for the Reliance Life Insurance Company Limited

Secondary Data Collection Various websites were consulted to collect literature relevant to the topic.

85

OBJECTIVE
To analyze the marketing strategies of RELIANCE LIFE INSURANCE company . To find out the market share of RELIANCE LIFE INSURANCE & other competitors. To know how each and every marketer tries to retain an increase its share in the market.

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DATA ANALYSIS & INTERPRETATION

DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES COMPANYS NAME L.I.C. RELIANCE LIFE INSURANCE ICICI PRUDENTIAL SBI LIFE HDFC TOTAL NO.OF RESPONDENT 78 3 10 7 2 100 SHARE (%) 78 3 10 7 2 100

7 10 3

LIC REL ICICI SBI HDFC 78

INTERPRETATION

87

78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.

DATA GIVES BENEFITS OF RELIANCE LIFE INSURANCE PERCEIVED BY

RESPONDENTS BENEFITS Cover Future Uncertainty Tax Deductions Future Investment TOTAL NO.OF RESPONDENTS 55 20 25 100 SHARE (%) 55 20 25 100

25%

Cover Future Uncertainty Tax Deductions 55% Future Investment

20%

INTERPRETATION 55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy.

88

Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively

DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS FEATURE Money Back Guarantee Larger Risk Coverance Easy Access to Agents Low Premium Companys Reputation TOTAL NO.OF RESPONDENTS 15 37 7 30 11 100 SHARE (%) 15 37 7 30 11 100

FEATURES OF INSURANCE POLICY

MONEY BACK GUAARENTEE

11% 15%

LARGER RISK COVERANCE EASY ACCESS TO AGENTS

37%

30%

LOW PREMIUM REPUTATION OF COMPANY

7%

INTERPRETATION

89

Majority of the respondent (37%) found Larger risk coverance as the most attracted feature of the all.

90

DATA PROVIDES NUMBER OF RELIANCE INSURANCE POLICY

TYPE RESPONDENTS POLICY TYPE LIFE POLICY NON LIFE POLICY BOTH NO. OF RESPONDENTS 75 25 45 SHARE (%) 75 25 45

NATURE OF POLICY

45

75

LIFE POLICY NON LIFE POLICY BOTH

25

INTERPRETATION 75% of the respondents have Life Insurance Policy while 45% have both. (The % is

calculated out of 280 positive response)

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 DATA GIVES PEOPLE PERCEPTION ABOUT RELIANCE LIFE INSURANCE RESPONSE NO. OF RESPONDENTS 81 74 100 SHARE (%)

A saving tool A tax saving device A tool to protect your family

81% 74% 100%

81 100

SAVING TOOL TAX SAVING TOOL

74

FAMILY PROTECTIO N

INTERPRETATION family. 92 81% of the respondents have perception of Insurance being a saving tool. And 74% of the respondents have perception of Insurance being a tax saving device. But 100% of the respondents are with the view that Insurance is a tool to protect your

 DATA SHOWS PEOPLES HAVING RELIANCE LIFE INSURANCE POLICY

30%

70% Yes No

RESPONSE Yes No Total INTERPRETATION

NO. OF RESPONDENTS 70 30 100

SHARE (%) 70% 30% 100%

Of the sample size of 400 surveyed respondents 70% of the respondents are having

Insurance policy.

93

30% of the respondents are either not having any Insurance policy at present or their

policy is already matured. And at present 100% of the respondents are with the view that Insurance is a tool to

protect your family. DATA SHOWS BUYING PROCESS OF THE PEOPLE BUYING PROCESS Customer approached Insurance company/Agent Company/agent approached customer Total NO. OF RESPONDENTS 45 55 100 SHARE (%) 45% 555 100%

55% 45%

Customer approached Insurance company/Agent Company/agent approached customer

INTERPRETATION 44.5% of the respondents approached the Insurance Company / Agent.

94

Whereas, 55.5% of the respondents were approached by the Company /Agent.

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 DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO RELIANCE LIFE POLICY RESPONSE Satisfied Not satisfied Not Responded Total NO. OF RESPONDENTS 60 40 0 100 SHARE (%) 60% 40% 0.0% 100%

0% 40%

60%

Satisfied

Not satisfied

Not Responded

INTERPRETATION 60% of the respondents are more or less satisfied with their existing policy. 40% of the respondents are not satisfied with their existing policy.

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In this case all of those who have taken a policy have responded.

DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO RELIANCE LIFE SERVICE AGENT RESPONSE Satisfied Not satisfied Not Responded Total NO. OF RESPONDENTS 45 55 0 100 SHARE (%) 45% 55% 0.0% 100%

55.00%

45.00%

Satisfied

Not satisfied

INTERPRETATION 45% of the respondents are satisfied with their existing service agent. 55% of the respondents are not satisfied with their existing insurance agent. All of those who have taken a policy have responded. 97

DATA SHOWS PEOPLE OPINION ABOUT RELIANCE LIFE INSURANCE RESPONSE NO. OF RESPONDENTS 67 29 26 35 24 10 0 SHARE (%) 67% 29% 26% 35% 24% 10% 0%
67

Rigid plans Non user friendly Unsatisfactory services Non Aggressive Satisfactory Good Very good

10 24

33

26

29 Non user friendly Non Aggressive Good

Inflexible plans Unsatisfactory services Satisfactory Very good

98

INTERPRETATION 67% of the respondents have the opinion that Reliance Insurance have Rigid plans. 29.5% feel that Reliance Insurance are Non-user friendly. 26.5% feel that services of Reliance Life Insurance are Unsatisfactory. 35.75% of the respondents are with the view that Reliance Life Insurance are Non-

aggressive. 24% of the respondents feel that products and services of Reliance Life Insurance is

Satisfactory. Whereas only 10.25% feel that it is Good enough. And according to the data, no single person has felt that it is very good.

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CONCLUSION
There has been tremendous change in the insurance history. And with it there has been continuous growth in this sector both in Indian as well as world context. The opening up of the insurance sector has changed the whole look of the industry. While the LIC in order to face the competition is coming with new strategies. New players like Reliance are leading the sector due to their strategic management and tailored made projects. From our research also we conclude that though the awareness and people opting for LIC plans are more as compare to MNYLbut the later are gaining momentum in the market day by day. The primary reasons for buying an insurance policy, whether life or non-life is to protect us from vagaries of life. We do not invest in insurance for returns; rather we invest in it for regrettable necessities. Though a large proportion of policies available in the country provide for returns, but nobody is looking for returns to the inflation rate. So what does insurance offer, perhaps peace of mind, but even that takes time, due to poor claim performance The demand for insurance is likely to increase with rising per-capita incomes, rising literacy rates and increase of the service sector, as has been seen from the example of several other developing countries. In fact, opening up of the insurance sector is an integral part of the liberalization process being pursued by many developing countries? So lets conduct this business with utmost economy with the spirit of trusteeship; thereby making insurance widely popular.

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LIMITATIONS
Major limitation of the study are: Public prefer private insurance mainly for the reasons such as timely service, better service, friendly approach, better communication, immediate attention, influence of friends and relatives as agents. Aged people have more concern for economic factors compared to youngsters while studying the reasoning for private policy preference. All other factors like service, human relations, product and comfort do not vary significantly based on age though the reasoning levels are high. Income, gender, experience with private insurance co., do not exert any significant level of difference relating to the factors like service, human relations, economic, comfort and product. Respondents who are experiencing both private and government policies find that the private insurance schemes are more attractive. The most important means of creating awareness are agents, friends, relatives and advertisements. Only 47.5 per cent of the respondents are found to be willing to recommend private insurance but 80 per cent of them are willing to opt for private policies in the future. Customers are found to highly satisfied with service facilities, human relations and attractive schemes. Age and income did not exert any significant level of difference in the satisfaction level of the customers regarding service, product, human relations, economic factors and comfort.

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RECOMMENDATION
There are certain flaws existing in this working of the insurance industry. There are some of the recommendation we ad come up with while doing this project. It will help to make insurance more important sector in todays economy. The need of the hour is to devise a comprehensive strategy that will help the firms face the challenges of the future. The financial services industry around the world over is undergoing a major transformation. It is very important that trained marketing professionals who are able to communicate specific features of the policy should sell the policy. From our research we could find out that people are not aware about the policies and features of insurance. Therefore LIC and Reliance are recommended to shed light on policies and explain the benefits, thus increasing the awareness. The penetration of insurance in India is around 22%. This indicates that a vast majority of rural population is not covered. The market player needs to explore this untapped potential through their marketing and sales network. The returns of the policies are not properly managed and never given in time. So, these must be looked at. Pricing of insurance products, as empirically available in India, shows that pricing is not in consonance with market realities. Life Insurance premium is generally perceived, as being too high while general insurance (especially motor insurance) is priced too low.

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BIBLIOGRAPHY

The various sources from where I collected datas are as follows. Internet Sites: http://www.reliancelife.co.in/website/our_founder.asp http://www.reliancelife.co.in/website/aboutus.asp http://www.reliancelife.co.in/website/products/reliance_automatic_investment_plan.asp http://www.reliancelife.co.in/website/products/reliance_money_guarantee_plan.asp

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QUESTIONNAIRE
1. YES ARE YOU EMPLOYED? NO

If YES, only then proceed

2. YES

DO YOU HAVE ANY INSURANCE POLICY? NO

3. WHICH INSURANCE POLICY DO YOU HAVE? LIFE NON-LIFE BOTH

4.

WHICH COS (RANK THEM) a) LIC

INSURANCE

POLICY

YOU

PREFER

THE

MOST?

b) ICICIPRUDENTIAL c) SBI LIFE INSURANCE d) ING VYSYA LIFE e) RELIANCE LIFE INSURANCE f) TATA AIG LIFE g) ANY OTHER ________( Specify)

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5.

FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? (Please Tick) a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______ (Specify)

6.

WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER? (RANK THEM) a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONS c) FUTURE INVESTMENT d) ANY OTHER _________ (Specify)

7.

WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT? (RANK THEM) a) LOW PREMIUM b) LARGER RISK COVERANCE c) MONEY BACK GUARNTEE d) REPUTATION OF COMPANY e) EASY ACCESS TO AGENTS f) ANY OTHER _________ (Specify) 105

8.

YOUR MONTHLY INCOME? a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)

9.

DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAYS SCENARIO IS NOT ESSENTIAL? _____________________________________________________

10.

WHATS YOUR PERCEPTION ABOUT RELIANCE LIFE INSURANCE? (RANK THEM) a) A SAVING TOOL b) A TAX SAVING DEVICE c) A TOOL TO PROTECT FUTURE

11.

HOW HAS/WOULD YOU BOUGHT/BUY AN RELIANCE LIFE INSURANCE? a) CUSTOMER APPROCHED INSURANCE COs b) INSURANCE COs APPROCHED CUSTOMER

12.

ARE YOU SATISFIED WITH THE RELIANCE LIFE POLICY? a) SATISFIED SAVING TOOL b) NOT SATISFIED c) NOT RESPONDING

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13.

ARE YOU SATISFIED WITH THE RELIANCE LIFE SERVICE AGENT? a) SATISFIED SAVING TOOL b) NOT SATISFIED c) NOT RESPONDING

14

DO YOU PAY TAXES? YES NO

15. WHATS THE RIGHT AGE TO BUY INSURANCE? a) AFTER 25 Yrs b) AFTER 35 Yrs c) AFTER 45 Yrs d) ANYTIME

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16.HOW WOULD YOU RATE INDIAN INSURANCE COs? a) RIGID PLANS b) NON-USER FRIENDLY c) UNSATISFATORY SREVICES d) NON-AGGRESSIVE e) SATISFACTORY f) GOOD g) VERY GOOD

17. ARE YOU PLANNING FOR NEW INVESTMENTS? PLANNING NOT PLANING

18. WOULD YOU GO FOR INSURANCE IF RELIANCE LIFE SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS? a) YES b) NO c) UNCERTAIN

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THANK YOU

NAME:_________________________ ADDRESS:______________________ ______________________________ OCCUPATION:___________________

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