Transcript of project on ulip vs mutual funds.corporate bonds,debt fund,etc
- 1. Reliance Life Insurance A Reliance Capital Company 1 | P a g
e A SUMMER PROJECT REPORT ON . U LIP(RELIANCE CLASSIC
PLAN-II)-Breaking the Myth and Repositioning as a PRODUCT OF CHOICE
& ULIP(RELIANCE CLASSIC PLAN-II)VERSUS Mutual Fund ,Corporate
Bond, Debt Fund and Money Market SUBMITTED BY:-JYOTISH KUMAR BHARTI
PGDM (2012-2014) Submitted for partial fulfillment of the
requirement of PGDM 2012-2014 UNDER THE GUIDANCE OF INTERNAL
GUIDE:- SWAGATA KUMAR FINANCE FACULTY,BITT CORPORATE GUIDE:-
AVINASH KUMAR BRANCH MANAGER (RELIANCE LIFE PLAZA, RELIANCE LIFE
INSURANCE) BIRSA INSTITUTE OF TECHNOLOGY TRUST
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e ACKNOWLEDGEMENT It gives me immense pleasure, having done a
project on an interesting and knowledgeable topic like Reliance
life plaza. This project has not only widened my horizon as far as
academics are concerned but also helped me to enlarge my knowledge
bank. Financial management are not topics, which could be handled
with certain amount of casualty. There are many people associated
with this project without which this project would not have been
possible. I thank my institute who has given me an opportunity to
show my skills. I also thank all my nearer and dearer ones without
whose support this project would not been possible. I would like to
thank Mr .Avinash kumar (Branch Manager) Ranchi, who allow me to do
this project in Reliance life plaza. I am deeply grateful to Mr.
kumar Dharmesh (Area Sales Manager) Jharkhand and Bihar, for his
ever willing help and guidance to complete my project successfully.
I also would like to thank to Mr. Satish kumar for his guidance and
help to complete my project perfectly. I would like to thank to Ms.
Swagata Kumar her able guidance, keen ineterst , constant
supervision and ever willing help throughout the course of this
study. I also would like to thank Ms. Kasturi Sahay (H.O.D and
placement cell head) who help in allowing to do this project in
Reliance. Above all I would like to thank all contacted person who
took out valuable time to answer me queries and gave me full
information about insurance industry and Reliance life plaza. I
extend my gratitude towards my parents, who have always encouraged
me and gave suggestions as how to work on project. They always
stand by me in solving all my queries. Their support has always
motivated me.
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e Above all it gives immense pleasure to thank authors of various
books who indirectly helped me in gaining knowledge about insurance
industry.
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e - PREFACE- Indian insurance industry is emerging rapidly after
year 2000.To survive in this highly competitive scenario, managers
are being pressured to improve quality and skilled people and
eliminate inefficiently .The collective efforts of the employer,
managers and other relative people assume relevance in this
context. And this is where finance management , marketing
management and human resource management play important role. RLIC
is the first company in India to set up a structured need-based
in-branch sales platform in the form of a 'Life Plaza', which aims
at creating awareness about life insurance and fulfilling the needs
of prospective customers through Financial planning and its array
of products and services. The introduction of Life Plaza was
announced by Mr. Malay Ghosh, President and Executive Director,
Reliance Life Insurance. Reliance Life Insurance offers the
products that fulfill our savings and protection needs. Our aim is
to emerge as a transnational Life Insurer of global scale and
standard. Reliance Life Insurance Company Limited is a part of
Reliance Capital, under Reliance Group. Reliance Capital is one of
India's leading private sector financial services companies, and
ranks among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital has interests in
asset management and mutual funds, stock broking, life and general
insurance, proprietary investments, private equity and other
activities in financial services. Reliance Life Insurance Company
(RLIC), part of ADAGs Reliance Capital Ltd, on Thursday launched a
new unit-linked plan, called Classic Plan II, that offers customers
dual benefits of insurance protection and market-linked return. The
existing ULIP plans in RLICs portfolio offer life cover benefit
equal to the sum assured plus fund value I have made an attempt to
study this aspect of insurance industry in my project. In this
project, details of ULIP product (Reliance Classic Plan-II)
breaking the myth and Repositioning it as a product of choice .And
its comparative analysis of ULIP(Reliance Classic Plan-II) versus
Mutual Fund, Corporate Bond, Debt Fund, Money Market. I have tried
to find out how consumer awareness about product and its
importance
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e regarding tax and investment benefit is very important for this
well as well as this industry as well as this firm. To get
knowledge of above question and to fulfill the requirements for
project on ULIP (Reliance Classic Plan-II) and its importance in
financial term I have worked in Reliance Life Insurance and search
some interest sites. On the basis of my study, I have included
following topics as the important aspect of my project I. Insurance
Industry Introduction II. Ulip Product details III. Ulip tax
benefits and charges IV. Ulip flexibility and disclaimer V. Ulip
working process In this project I have tried to give attention to
all the above topics and study them in depth. But I would still
like to receive all sorts feedback to enhance my knowledge on the
topics as far as this industry is concern.
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e TABLE OF CONTENTS. ACKNOWLEDGEMENT 2 PREFACE 4 TABLE OF CONTENTS
6 LIST OF ABBREVIATIONS 8 SECTION( A): INTRODUCTION 9 A.1> ABOUT
INSURANCE INDUSTRY IN INDIA 10 A.2>ABOUT RELIANCE LIFE INSURANCE
17 A.3>ABOUT RELIANCE LIFE PLAZA 32 A.4> ABOUT PROJECT 41
SECTION( B): RELIANCE LIFE INSURANCE LAUNCHES ULIP( RELIANCE
CLASSIC PLAN-II) 42 SECTIONC(-A): ULIPPRODUCT(REL1IANCE CLASSIC
PLAN-II) 48 C.1>ULIP {ABOUT us. 49 C.2>ULIP {CHARGES 49
C.3>ULIP {FAQs. 55 C.4>ULIP {Flexibility 58 C.5>ULIP
{Benefits. 60 C.6>ULIP {Tax and benefits 63
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e C.7>ULIP {Disclaimer 64 (C-B)COMPARATIVE ANALYSIS OF
ULIP(RELIANCE CLASSIC PLAN-II VERSUS MUTUAL FUND,CORPORATE
BOND,DEBT FUND AND MONEY MARKET 66 SECTION (D): STATUS REPORT 82
RESEARCH METHODOLOGY D.1> RESEARCH OBJECTIVE 83
D.2>QUESTIONNAIRE 83 D.3>SAMPLING METHOD AND SAMPLE SIZE 83
D.4>LIMITATIONS 84 D.5>SWOT ANALYSIS 84 SECTION E:CONCLUSION
86 E.1>EXPERIENCE 87 E.2>SUMMARY 87 E.3>RECOMMENDATION 88
E.4>BIBLIOGRAPHY 89 SECTION F:ANNEXURE 90 F.1>QUESTIONNAIRE
91 F.>ANALYSIS OF QUESTIONNAIRE 93 THANK YOU 102
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e LIST OF ABBREVIATIONS RLI Reliance Life Insurance IRDA Insurance
Regulatory & Development Authority AA Agent Advisor PO CSR
Corporate Social Responsibility SM Sales Manager RCL Reliance
Corporation limited ADAG Anil Dhirubhai Ambani Group
- 9. Reliance Life Insurance A Reliance Capital Company 9 | P a g
e Section A: INTRODUCTION
- 10. Reliance Life Insurance A Reliance Capital Company 10 | P a
g e A.1> About Insurance Industry in India A promise of
compensation for specific potential future losses in exchange for a
periodic payment. Insurance is designed to protect the financial
well-being of an individual, company or other entity in the case of
unexpected loss. Insurance = Collective bearing of Risk. Basic
Human trait is to be averse the idea of risk taking. Insurance,
whether life or non-life, provides people with a reasonable degree
of security and assurance that they will be protected in the event
of a calamity or failure of any sort. Insurance sector is an
opportunity for India. This business is growing at the rate of
18-22 per cent annually. Presently it covers market of Rs.450
billion. Together with banking sector it contributes about 7% to
GDP. Gross premium collection is about 2% of GDP. Still 80% of
Indian population is without life insurance. This is an indicator
that growth potential for the insurance sector is immense.
Insurance sector contribute a lot in economic development. It
provides long term fund for infrastructure development. It is
estimated that over the next ten years India would require
investment of the order of one trillion US dollar The insurance
sector,to some extent,can enable investments in infrastructure
development to sustain economic growth of the country. Division OF
Insurance Sector
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g e Origin And Growth Of Insurance Sector # In fiscal 2000-01, the
Indian federal government lifted all entry restrictions for private
sector investors. # Foreign investment insurance market was also
allowed with 26 percent cap. # GIC was converted into India's
national reinsure From December,2000. # All the subsidiaries
working under the GIC umbrella were restructured as independent
insurance companies. Till end of FY 1999-2000, two state-run
insurance companies, namely, Life Insurance Corporation (LIC) and
General Insurance Corporation (GIC) were the monopoly insurance
providers in India. #Under GIC there were four subsidiaries:
National Insurance Company Ltd. Oriental Insurance Company Ltd.
Insurance industry in india Public sector Life Lic Post office
insurance general Gic and its four subsidiaries Private sector Life
(16Companies) General (16 Companies)
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g e New India Assurance Company Ltd. United India Assurance Company
Ltd. Factor Affecting Service Sector Five environmental variables
that affect all industries- Customers Competitors Government
Technology and Globalization -are forcing rapid changesin the
service sector. In addition, there are four factors ofparticular
importance to service providers- change in how quality is perceived
cost control customer services and the new definitions of the
customer Life Insurance Corporation Organisation The Life Insurance
Corporation of India (LIC) is undoubtedly India's largest life
insurance company. Fully owned by government, LIC is also the
largest investor of the country. LIC has an estimated asset of ` 8
Trillion. It also funds almost 24.6% of the expenses of Government
of India. Established in 1956 and headquartered in Mumbai, Life
Insurance Corporation of India has 8 zonal offices, 100 divisional
offices, 2,048 branch offices and a vast network of
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g e 10,02,149 agents spread across the country. Life insurance
companies In India 1.Bajaj Allianz Life Insurance Company Limited
2.BirlaSunLifeInsuranceCo.Ltd 3.HDFCStandardLifeInsuranceCo.Ltd
4.ICICIPrudentialLifeInsuranceCo.Ltd.
5.INGVysyaLifeInsuranceCompanyLtd.
6.LifeInsuranceCorporationofIndia 7.MaxNewYorkLifeInsuranceCo.Ltd
8.MetLifeIndiaInsuranceCompanyLtd.
9.KotakMahindraOldMutualLifeInsuranceLimited
10.SBILifeInsuranceCo.Ltd 11.TataAIGLifeInsuranceCompanyLimited
12.RelianceLifeInsuranceCompanyLimited.
13.AvivaLifeInsuranceCo.IndiaPvt.Ltd.
14.SaharaIndiaLifeInsuranceCo,Ltd. 15.ShriramLifeInsuranceCo,Ltd.
16.BhartiAXALifeInsuranceCompanyLtd.
17.FutureGeneraliLifeInsuranceCompanyLtd.
18.IDBIFortisLifeInsuranceCompanyLtd.
19.CanaraHSBCOrientalBankofCommerceLifeInsuranceCo.Ltd
20.AEGONReligareLifeInsuranceCompanyLimited.
21.DLFPramericaLifeInsuranceCo.Ltd. 22. Star Union Dai-ichi Life
Insurance Comp. Ltd. Non-Life Insurance companies in India
#>Bajaj..Allianz..General..Insurance..Co..Ltd.
#>ICICILombardGeneralInsuranceCo.Ltd.
#>IFFCOTokyoGeneralInsuranceCo.Ltd.
#>NationalInsuranceCo.Ltd.
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g e #>NewIndiaAssuranceCo.Ltd. #>Oriental..InsuranceCo.Ltd.
#>RelianceGeneralInsuranceCo.Ltd.
#>RoyalSundaramAllianceInsuranceCo.Ltd.
#>TataAIGLifeInsuranceCo.Ltd. # United India Insurance Co. Ltd
Reinsurers: # General Insurance Corporation of India Contribution
Too Growth Currently, the insurance sector size is estimated at
Rs.500 billion. On account of intense marketing strategies adopted
by private insurance players, the market share of state owned
insurance companies like GIC, LIC and others have come down to 70%
in last 4-5 years from over 97%. The private insurance players
despite the sector is still regulated has been offering rate of
return (R o R) to its policy holders which is estimated at about
35% as against20% of domestic insurance companies. LIC and GIC have
limited number of policies to offer to their subscribers Private
insurance companies offer many policies and the premium amount as
well as the maturity period is much competitive as against those of
government insurance companies. The private sector insurance
players have started exploring the rural markets in which until
recently, the state owned companies had the monopoly. Indias life
insurance premium, as a percentage of GDP is 1.8% Future Of Sector
*Indian insurance sector is likely to register unprecedented growth
of 200% and attain a size of Rs. 2000 billion by 2009-10 *A private
sector insurance business will achieve a growth rate of 140% as a
result of
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g e aggressive marketing technique being adopted by them against
35-40% growth rate of state owned insurance companies. *In rural
markets, the share of private insurance players would increase
substantially as these have been able to generate a faith among
their rural consumers. Insurance Sector-Emerging Areas Demand for
Pension Plans:- Two relatively modern trends affect lifeinsurance
business in India significantly: Joint Family System and elderly
are increasingly having to fend for themselves Separateness of
Banking and Insurance Bancassurance Role of Information Techno-logy
Using Postal Network Creating Insurance awareness Innovative
Products Change in Trends From price point of view DIFFERENT
COMPANIES ARE PROVIDING POLICES OF INSURANCE AT COMPETETIVE PRICES
EVEN THE ALLOCATION CHARGES UNDER POLICIES IS ALSO DECREASED THE
INSURANCE AGENT COMISSION IS ALSO FIXED AAND REDUCED
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g e SO THAT THE CUSTOMER CAN GET THE BEST. From customer and
service point of view Globalization - "The Dynamic Force" MNCs -
"The New Path Maker" More customer oriented Mostly better service
oriented More competitive Better satisfaction More value addition
Strategic development From promotion point of view Computerization
Internet Electronic Clearance Service (ECS) Call Centres and SMS
services Indian Insurance In 21st Century # > 2000:IRDA starts
giving licenses to private insurers: ICICI prudential and HDFC
Standard Life insurance first private insurers to sell a policy. #
> 2001: Royal Sundaram Alliance first non life insurer to sell a
policy . # >2007:First Online Insurance portal, set up by an
Indian Insurance Broker, Bonsai Insurance Broking Pvt Ltd. #
>The Government of India liberalized the insurance sector in
March 2000 with the passage of the Insurance Regulatory and
Development Authority (IRDA)
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g e Bill, lifting all entry restrictions for private players and
allowing foreign players to enter the market with some limits on
direct foreign ownership. #>Minimum capital requirement for
direct life and Non-life Insurance company is INR1000 million and
that for reinsurance company is INR 2000 million. In the 2004-05
budgets, the Government proposed for increasing the foreign equity
stake to 49%, this is yet to be effected. Under the current
guidelines, there is a 26 percent equity cap for foreign partners
in direct insurance and reinsurance Company. A.2> Reliance Life
Insurance Reliance Life Insurance offers you products that fulfill
your savings and protection needs. Our aim is to emerge as a
transnational Life Insurer of global scale and standard. Reliance
Life Insurance 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
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g e (NBFC) registered with the Reserve Bank of India under section
45-IA of the Reserve Bank of India Act, 1934. Reliance Capital sees
immense potential in the rapidly growing financial services sector
in India and aims to become a dominant player in this industry and
offer fully integrated financial services. Reliance Life Insurance
is another steps forward for Reliance Capital Limited to offer need
based Life Insurance solutions to individuals and Corporate.
FOUNDER OF RELIANCE Few men in history have made as dramatic a
contribution to their countrys economic fortunes as did the founder
of Reliance, Shri. Dhirubhai H Ambani. Fewer still have left behind
a legacy that is more enduring and timeless. As with all great
pioneers, there is more than one unique way of describing the true
genius of Dhirubhai: The corporate visionary, the unmatched
strategist, the proud patriot, the leader of men, the architect of
Indias capital markets, the champion of shareholder interest. But
the role Dhirubhai cherished most was perhaps that of Indias
greatest wealth creator. In one lifetime, he built, starting from
the proverbial scratch, Indias largest private sector enterprise.
When Dhirubhai embarked on his first business venture, he had a
seed capital of barely US$ 300 (around ` 14,000). Over the next
three and a half decades, he converted this fledgling enterprise
into a ` 60,000 crore colossusan achievement which earned Reliance
a place on the global Fortune 500 list, the first ever Indian
private company to do so. Dhirubhai is widely regarded as the
father of Indias capital markets. In 1977, when Reliance Textile
Industries Limited first went public, the Indian stock market was a
place patronised by a small club of elite investors which dabbled
in a handful of stocks. Undaunted, Dhirubhai managed to convince a
large number of first-time retail investors to participate in the
unfolding Reliance story and put their hard-earned money in the
Reliance Textile IPO, promising them, in exchange for their trust,
substantial return on their investments. It was to be the start of
one of great stories of mutual respect and reciprocal gain in the
Indian markets. Under Dhirubhais extraordinary vision and
leadership, Reliance scripted one of the greatest growth stories in
corporate history anywhere in the world, and went on to
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g e become Indias largest private sector enterprise. Through out
this amazing journey, Dhirubhai always kept the interests of the
ordinary shareholder uppermost in mind, in the process making
millionaires out of many of the initial investors in the Reliance
stock, and creating one of the worlds largest shareholder families.
HISTORY Reliance Capital Limited announced the launch of its life
insurance business on February 1, 2006. This was after obtaining
the required regulatory approvals from the Registrar Of Companies
and the Insurance Regulatory and Development Authority. It was in
August 2005 that the ball was set rolling when Reliance Capital
Limited, the financial arm of Reliance Anil Dhirubhai Ambani Group
(ADAG) announced the requisition of 100% shareholding in AMP Sanmar
Life Insurance Company Limited; and the formal transfer of shares
took place in October 2005. The company will issue all policy
contracts under the Reliance Life Insurance Company limited name.
All the existing policy contracts also stand transferred to the
Reliance Life Insurance entity with all the original contractual
terms and commitments intact. JOURNEY SO FAR. 2005 August: Anil
Dhirubhai Ambani Group (ADAG) announces the acquisition of 100
percent shareholding in AMP Sanmar Life Insurance Co Ltd.
2006January 17: Mr. Nandgopal participates in a one-day conference
on Optimising growth opportunities through Distribution Matrix:
Emerging Bancassurance organized by the Asia Insurance Post at the
Taj President, Mumbai. February 1: Rliance Life Insurance
officially launched. February 16, 17, 18: Strategy meet at the
Reliance Management Institute. Amongst those who participate are
the CEO, COO, Functional Heads, Regional Managers and Regional
Sales Managers. February 26: A Puja held at the Churchgate office
situated in Express Building, 4th
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g e Floor, 14 E Road, Mumbai. March 1: Churchgate office
inaugurated by Mr. Amitabh Jhunjhunwala, Mr. Amitabh Chaturvedi and
Mr. Nandgopal. March 6: Shifting to the new premises at Churchgate
commences. March 7: The new office at Chennai, at the Trapezium,
First Floor, # 39, Nelson Manickam Road, inaugurated by their CEO
Mr. Nandgopal, Mr. KV Srinivasan and Mr. Sureshbabu also graced the
occasion. ACHIEVEMENT Largest Private Life Insurance in terms of
Number of Policies for two consecutive years as of 31st March 2012
A wide network of 1230 branches and 1,50,000 advisors Over 9
million policies RLIC continues to be amongst the foremost Life
Insurance companies in India to be certified ISO 9008:2001 Winner
of Best Non-Urban Coverage Award at Indian Insurance Awards 2011
RLICs Boundaries for Books Campaign won the 'Silver' at the Indian
Digital Media Awards (IDMA) 2012, under Best Integrated Campaign
Social Cause and Best Use of Social Network Social Cause Amongst
the top 3 Most Trusted Service Brands in the Insurance category as
per the Brand Equitys Most Trusted Service Brands 2011 Survey ROLE
OF IT AT A RELIANCE LIFE INSURANCE 1) World Class Data Centre: -
They plan to establish a Primary Data Centre at Navi Mumbai
(Dhirubhai Ambani KnowledgeCity) which will cater to their company
needs across India, with fail-over
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g e capability to their Chennai Data Centre within the same
business day in occurance if an incident or Disaster happens. 2)
Inter Office Connectivity: - All their Branch / Area and Regional
offices will be interconnected to their Data Centre with a 24x7
access to Core Applications like Lotus Mail, Life-Asia and Internet
Applications. This will enable their associates to work faster and
better with high-speed Internet connectivity and also ensure faster
Turn Around Time for their customers. 3) Customer Care Centre: -
They will host a centralized Customer Care Centre at Dhirubhai
Ambani Knowledge City at Navi Mumbai, which cater services to
internal and external queries and complications. A customer
Relationship Management Tool (CRM) and Lead Management System (LMS)
are in progress. 4) Web Portal: - This portal will be an interface
between both internal employees and their external users. Some of
the functions included in their portal are Policy Tracking Systems,
Corporate News, Quality Checking System, Under Writing Medical
System, and Agent Management System etc. 5) R World: - Reliance
Mobile R-World will provide online information about their Company,
Products, and Policy Services to their existing customers,
Agents/Advisors and Lead Generators. 6) SMS Alerts: - SMS Alerts
will be provided to their Sales Managers about the latest
happenings like Contests and Campaigns, Employee Alerts will
include Company News and Welcome/Birthday/Anniversary message etc.
Customer Alerts will include Welcome/Birthday/Anniversary message,
Policy Dispatch Details, Policy Servicing SMS like Premium Receipt
and Renewal Premium reminders etc. 7) Life and Group Asia: - Single
Life and Group Life details will be captured and managed by Life
and Group Asia. A common middleware between these applications will
enable Group Life Customers to view their individual Single Life
Insurance Plan details taken with Reliance Life Insurance and vice
versa. 8) Advisor Lounge: - It is a dedicated area for Reliance
Life Insurance Agents/Advisors in all the branches
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g e across India. This Lounge will be equipped with desktops and
printers with Internet connectivity, where their Advisors can bring
in the prospects and can have discussions across the table and they
can create and print quotes. The Agents/Advisors can use this area
to service their existing customers. 9) Document Management System:
- DMS will enable both policy issuance and contract servicing
through an automated workflow, which yields a faster Turn around
Time to both internal and external users. This application will
enable them to have a paperless office and thus mitigate the risk
of losing vital records/papers. 10) Wireless Data Access: - This
will enable identified Top Sales Managers and Top Advisors to
access real time data for both LMS and CRM on the fly through
Handheld PDA device. 11) SAP ERP Modules: - SAP (Finance and HR
Modules), will automate the Expense, Travel and Leave Management
Systems. MISSION The mission of Reliance Life Insurance Company
Limited is to be the best in every sphere- business results,
customer care and employee focus. The aim of the company is to
Think Bigger and Think Better. CORE VALUES Reliance Life Insurance
Company Limited has some core values which are listed as follows:
1) Result Oriented 2) Performance Driven 3) Customer Focused 4)
Learning and Development Oriented 5) Employee Centric 6) Informal
and Fun FUTURE PLANS Forty-four new branches to be opened across
the country in the coming months; and a pan India presence with 162
branches in the coming year. A state-of-the-art customer care
centre will provide continuous, responsive services to the caller
and promptly address queries, collate feedback and suggestions from
the caller, who may be both
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g e prospective and existing clientele and from channel partners in
Chennai and Mumbai. It will be launching additional products aimed
at providing unparalleled service to its valued clientele. VISION
Empowering everyone live their dreams. GOAL Reliance Life Insurance
would strive hard to achieve the 3 goals mentioned below: Emerge as
transnational Life Insurer of global scale and standard Create best
value for Customers, Shareholders and all Stake holders Achieve
impeccable reputation and credentials through best business
practices HEAD OFFICE Reliance Life Insurance Company Limited, The
Trapezium, 39, First Floor, Nelson Manickam Road, Chennai 600 029.
BRANCHES They have so many branches and substations in the India.
They have around 160 branches in the India. And they have planned
to open more branches across the country in the coming months
PRODUCTS TRADITIONAL PLAN:- Life insurance products are designed to
suit the requirementsof customers. Fundamentally the product
provide for: Risk cover Investment Health cover
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g e In every product, to a certain degree, risk cover is imperative
for it to fall under the category of insurance. Based on the
coverage of the product, the premiums are calculated and the
customer pays accordingly. In order to suggest the right product,
it is essential for an agent to understand the requirements of the
customer well. Reliance Life Insurance Company Limited has offered
9 traditional plans to the customers, which are listed as follows:
1) Reliance Term Plan 2) Reliance Whole Life Plan 3) Reliance Child
Plan 4) Reliance Endowment Plan 5) Reliance Special Endowment Plan
6) Reliance Cash Flow Plan 7) Reliance Credit Guardian Plan 8)
Reliance Special Credit Guardian Plan Each of the above traditional
plans is discussed as follows: 1) Reliance Term plan: - This
insurance policy is designed for those who only want life cover for
the protection of their family, and do not wish to save for
themselves. It can also be useful to business firms that wish to
provide financial security to their business against the sudden
loss of partners or valuable manpower. Since there is no saving
element or bonus provision, the premium is very low. Hence, this is
a high-risk plan with a low premium. Features: - a) Purely a term
plan b) Entry age minimum 18 years and maximum 65 year c) Maximum
premium paying term is 30 year d) Loan facility N.A. e) Maturity
amount = Sum assured 2) Reliance Whole Life Plan: - This insurance
policy is designed for people who do not wish to avail of any
benefits themselves but wish to create an immediate estate to
protect their family by availing of insurance cover on their life
at a very low cost. Features: - a) It is a whole life insurance
policy with profits b) Low cost life cover
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g e c) Maturity age is 85 year or 99 years last birthday as chosen
d) Maturity amount = Sum assured + Vested bonus e) Tax benefit is
available 3) Reliance Child Plan: - This insurance policy is
designed for people who wish to save money for a future time when
there will be a recurring need for substantial amounts of money.
This is especially true when it comes to paying large sums of money
for higher education as and when your son or daughter is studying
to become an Engineer, a Doctor or specialize in some other field,
or is perhaps planning to go abroad. This money is payable in equal
installments over the last 4 years of the policy term. Features: -
I. Minimum entry age is 20 year and maximum 60 year a) Minimum sum
assured is Rs. 25,000. b) Minimum premium paying term is 5 year and
maximum 20 year c) Tax benefit is available d) Maturity amount =
Four equal installment of sum insured in last four year plus vested
bonus in the last year e) Loan facility is available 4) Reliance
Endowment Plan: - Reliance Life Insurances Reliance Endowment Plan
is the key to all your financial needs. It is an inexpensive and
easy way to protect you, your family or your business. In a
nutshell this plan will keep you financially prepared for all the
special occasions in your life - your daughters wedding, your
childs university education or even a new office for your business
- by eliminating the burden that a shortage of money creates. In
the event of your untimely death, Reliance Endowment Plan will also
assist your loved ones through this difficult time by the financial
support that it provides. Reliance Endowment Plan also gives you
the additional benefit of participating in the companys profits,
which you will receive at the end of the policy period. Features: -
a) Entry age minimum is 5 year and maximum 65 year b) Maturity age
minimum is 18 year and maximum 75 year c) Minimum premium paying
term is 5 year and maximum 35 year in case of regular and in case
of single 15 year
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g e d) Minimum sum assured is Rs. 25,000 or as determined by the
minimum premium e) Maximum sum assured is Rs. 5,00,000 (entry age
below 18 years and no limit for entry age 18 and above) f) Premium
mode annual, half yearly, quarterly and monthly(by salary deduction
only) g) Loan up to 90% of the surrender value of the policy h)
Maturity amount = Guaranteed sum assured + Reversionary bonus 5)
Reliance Special Endowment Plan: - This insurance policy is
designed for people who wish to combine savings with extended
security. The unique feature of this policy is that life protection
continues for five years after you have stopped the payment of
premium. Payment of sum assured at the end of premium paying term
and extension of life cover thereafter for the full sum assured for
a period of 5 years, are characteristics of the policy.This plan
also participates in the profits. Features: - a) Entry age minimum
12 year and maximum 65 year b) Minimum sum assured is Rs. 25,000 c)
Minimum premium paying term is 10 year and maximum 40 year d)
Unique feature of this policy is that five year life protection
continues after you have stopped the payment of premium e) Tax
benefit is available f) Under this policy bonus is compounded
yearly g) Loan facility is available h) Maturity amount = Full sum
assured before maturity date + Vested bonus at the time of maturity
date. 6) Reliance Cash Flow Plan: - This insurance policy is
designed for those who have a recurring need for reinvestment in
business or look for short-term investment channels. The advantage
of the policy is that they need not part with a sizable amount of
money at any one time, but create, through regular premium
payments, a periodic return of lump sums which become available for
reinvestment at higher returns, while providing simultaneously,
substantial life cover. Alternatively, it can be used to meet any
immediate financial crisis in the family like your son's college
admission, your daughter's engagement, and renovation of your home
or perhaps, a holiday abroad. The money is payable in installments.
The first installment is paid at
- 27. Reliance Life Insurance A Reliance Capital Company 27 | P a
g e the end of the 4th year and thereafter at the end of every 3rd
year. Features:- a) Plan with profits b) Minimum entry age is 15
year and maximum is 63 year c) Maximum premium paying term is 34
year d) Loan facility is not available e) In case of death full sum
assured + accrued bonuses up to the date of death is payable
immediately f) In case of survival up to maturity date all premium
paid g) Rider accident death and critical illness h) Mode of
payment is available 7) Reliance Credit Guardian Plan: - This
insurance policy is designed for those who not only safeguards
individuals but also families and businesses from the financial
hardship that could arise from unfortunate and unexpected death.
Features: - a) Loan protection against home, home improvement, two
wheelers and four wheelers b) In case of death remaining loan
amount paid immediately c) In case of survival no benefit is
available d) Premium payment option for single and regular is
available e) Premium paying term is 2/3 of loan period and
remaining period paid by the company 8) Reliance Special Credit
Guardian Plan: - This insurance policy is designed for those who
not only safeguards individuals but also families and businesses
from the financial hardship that could arise from unfortunate and
unexpected death, disability or critical illnesses. Features: - a)
Loan protection against home, home improvement, two wheelers and
four wheelers b) In case of death remaining loan amount paid
immediately c) In case of survival no benefit is available d)
Premium payment option for regular and single is available e)
Premium payment term is 2/3 of loan period and remaining period
paid by the company
- 28. Reliance Life Insurance A Reliance Capital Company 28 | P a
g e f) Maturity amount = All the premium paid amount g) Tax benefit
is available UNIT LINKED PLAN A unit-linked policy is a life
assurance policy in which the benefits depend on the performance of
a portfolio of shares. Each premium paid by the insured person is
split: a part is used to provide life assurance cover, while the
balance (after the deduction of costs, expenses, etc.) is used to
buy units in a unit trust. In this way, a small investor can
benefit from investment in a managed fund without making a large
financial commitment. As they are linked to the value of shares,
unit linked policies can go up or down in value. Policyholders can
surrender the policy at any time and the surrender value is the
selling price of the units purchased by the date of cancellation
9less expense). A small part of the contribution is used for
providing life cover and the balance is invested in unit. Legal
heirs are entitled to the amount of insurance cover and entitled
units in case of death of the insured. Reliance Life Insurance
Company Limited has also offered the two Unit Linked Plans, which
are listed as follows: 1) Reliance Market Return Plan 2) Reliance
Golden Years Plan Amongst the above plans the Reliance Market
Return Plan is the largest selling plan of the Reliance Life
Insurance Company Limited. The above two ULIP plans are discussed
as follows: 1) Reliance Market Return Plan: - Reliance Market
Return Fund is the unit-linked product that helps you invest in the
financial markets in a combination of investment instruments of
your choice. You can enjoy the returns from the markets without the
trouble of monitoring and managing your own investment portfolio
and keeping track of the market movements. At the same time your
investment premiums provide you with insurance cover. Reliance
Market Return Fund unit-linked insurance plan provides you with a
basket of fund options that balances your return and risk exposure
while providing life cover at the same time. Features: - a) Minimum
entry age is 30 days and maximum entry age is 65 year b) Maximum
policy term 40 year and minimum policy term 5 year c) Mode of
premium as annual, quarterly, half yearly and monthly Rs. 1000 (for
salary deduction only) and Rs. 2500 (standing order/credit
card)
- 29. Reliance Life Insurance A Reliance Capital Company 29 | P a
g e d) Top up premium minimum Rs. 2500 e) Option of investment fund
i. Capital secure 100% fixed interest securities ii. Balanced
minimum 80% fixed interest securities and maximum 20% in equity
iii. Equity 100% equity iv. Growth minimum 60% fixed interest
securities and maximum 40% in equity f) Loan facility is not
available g) One switches every year free and subsequent switches
charged 1% of the amount switched h) Partial withdrawals per year
under regular and single premium options is 2 times i) Lock in
period till today is 3 year j) Minimum unit account balance after
each withdrawals is Rs. 10,000 2) Reliance Golden Years Plan: -
Reliance Golden Years Plan.. The Reliance Life Insurance no-worry
stay happy retirement plan. Reliance Golden Years Plan is a
flexible package that provides freedom of choice in choosing the
type of investment, life cover, vesting options such as commuting
and annuity options. Contributions provide Income tax savings as
well. Reliance Golden Years Plan, a flexible pension product is
available for all individuals who are between the ages of 18 and
65. Features: - a) Entry age minimum is 18 year and maximum 65 year
b) Minimum premium amount Rs. 10,000 and maximum is unlimited c)
Mode of premium payment is available d) Pension plan with risk
cover and without risk cover e) Choice of investment i. Capital
secure fund 80% in equity and 20% in government security ii.
Balanced fund 80% in government and 20% in equity f) No loan
facility is available g) Tax benefit is available h) Annuity
options i. Annuity payable for life ii. Annuity payable for 5/10/15
years certain and thereafter with life iii. Annuity payable for
life with return of capital on death of the annuitant ROLE OF
FINANCE DEPARTMENT IN RELIANCE
- 30. Reliance Life Insurance A Reliance Capital Company 30 | P a
g e LIFE INSURANCE. FUND PERFORMANCE:- There are four fund options,
which Reliance Life Insurance Company Limited has offered, which
are as follows: 1) Capital Secure Fund:- This fund is for Reliance
Golden Years Plan, and Reliance Market Return Plan. In line with
the objective of protecting the capital against any erosion, 61.4%
of the funds were invested in short-term Government Securities
(Gilts) and to meet liquidity requirement higher about 40% of funds
are kept in short term bank deposits. Bank Fixed Deposits Asset
Name % of total assets Total Bank Deposit 38.60 Gilts Total Gilts
61.40 Total 100.00 2) Balanced Fund:- This fund is for Reliance
Golden Years Plan, and Reliance Market Return Plan. To take
advantage of the bullish trend in the equity market, the equity
holdings in the fund was maintained as close as possible to the
maximum of 20% allowed for the fund. Bank deposits were maintained
only for the purpose of liquidity management. To reflect their
bearish view on the debt market the duration of the fixed income
portfolio was kept low. Within the fixed income portfolio,
allocation to Gilts was higher than corporate bonds. All the bonds
in the portfolio are top rated Asset Name % of Total Asset Equity
20 Corporate Bonds & Debentures 22 Gilts 53 Bank Deposits 5
Total 100.00 3) Growth Fund:- This fund is for Reliance Golden
Years Plan, and Reliance Market Return Plan. To take advantage of
the bullish trend in the equity market, the equity holdings in the
fund was
- 31. Reliance Life Insurance A Reliance Capital Company 31 | P a
g e maintained as close as possible to the maximum of 20% allowed
for the fund. To reflect their bearish view on the debt market the
duration of the fixed income portfolio was kept low. All the bonds
in the portfolio are top rated. Asset Name % of Total Asset Equity
9 Corporate Bonds & Debentures 40 Gilts 45 Bank Deposits 6
Total 100.00 4) Equity Fund:- This fund is for Reliance Market
Return Plan. In line with the stated asset allocation pattern and
their view of the market, the entire corpus of the fund was
invested in equities. Asset Name % of Total Asset Equity 98.93
Mutual Fund/Bank Deposits 1.07 Total 100.00
- 32. Reliance Life Insurance A Reliance Capital Company 32 | P a
g e A.3>RELIANCE LIFE PLAZA Reliance Life introduces Life Plaza
RELIANCE LIFE INSURANCE INTRODUCES LIFE PLAZA FIRST-OF-ITS-KIND
SALES AND SERVICE INITAITIVE BY A NY INSURER IN INDIA AIMS TO
FULFILL NEEDS OF PROSPECTIVE AND EXISTING CUSTOMERS AND OFFER
FINANCIAL AND VALUED-ADDED SERVICES TO SET UP CLOSE TO 200 LIFE
PLAZA BRANCHES ACROSS THE COUNTRY PLANS TO HIRE 1,000 PEOPLE UNDER
NEW SALES FORMAT FOCUS ON TIER II, TIER III AND TIER IV CITIES
MUMBAI, OCT 23: Reliance Life Insurance Company (RLIC) today
introduced a distribution channel Life Plaza aimed at creating
awareness about life insurance and said it plans to set up about
200 branches across the country by the end of the current
financial
- 33. Reliance Life Insurance A Reliance Capital Company 33 | P a
g e year. The main objective of our new distribution format is to
generate greater awareness about life insurance in and around
different locations where these Life Plazas will operate and create
a pull for life insurance products, Malay Ghosh, President and
Executive Director, Reliance Life Insurance, said. RLIC targets to
hire about 1,000 people under this new distribution format within
this fiscal and would focus on Tier II, Tier III and Tier IV cities
for recruitment and setting up of Life Plazas, he said. Reliance
Life Plaza would promote need-based sales, fill service gaps and
also offer financial and value-added services such as tax and
financial planning, Aadhar card registration, pan card generation,
health check-ups and nutrition counselling. All Life Plazas will be
managed by RLIC employees, who will handle customers queries and
process the documentation instantly at the venue, with a view to
tap new customers and also provide service to existing RLIC
policyholders, the company said. Apart from addressing walk-in
customers, the company will also proactively invite customers to
the Life Plaza for presentations on the benefits of investment in
various financial products; importance of insurance as life
protection tool and RLICs wide-range of products and services, it
said. We believe this unique distribution model will help us reach
out to customers, understand their needs and provide solutions to
them at the venue. The process of selling will ensure that the
customer buys only what he or she needs and understands and thus
also address the problem of mis-selling, Malay Ghosh said. He
further added that, We are confident that Life Plaza will help us
build a healthy relationship with the customers and expand and
strengthen the existing distribution channels in order to increase
our reach. We hope to replicate the success that this model enjoys
in Japan, he said. RLIC is the first company in the country to set
up a structured need-based in- branch sales platform in the form of
a Life Plaza, the company said.
- 34. Reliance Life Insurance A Reliance Capital Company 34 | P a
g e Reliance Life Insurance Company (RLIC), part of Reliance
Capital Limited, on Tuesday introduced a new distribution channel
-- Life Plaza -- a first-of-its-kind sales and service initiative
by any insurer in India. RLIC is the first company in India to set
up a structured need-based in-branch sales platform in the form of
a 'Life Plaza', which aims at creating awareness about life
insurance and fulfilling the needs of prospective customers through
financial planning and its array of products and services. The
introduction of Life Plaza was announced by Mr. Malay Ghosh,
President and Executive Director, Reliance Life Insurance, here
today. "The main objective of our new distribution format is to
generate greater awareness about life insurance in and around
different locations where these Life Plazas will operate and create
a pull for life insurance products. Need fulfillment of customers
at the venue through our products and services is the ultimate goal
of Life Plaza," said Mr. Ghosh. Inspired by best practices of
Nippon Life, Reliance Life Plaza would promote need- based sales,
fill service gaps and also offer financial and value-added services
such as tax and financial planning, Aadhar card registration, pan
card generation, health check- ups and nutrition counseling. All
Life Plazas will be managed by RLIC employees, who will handle
customers' queries and process the documentation instantly at the
venue, with a view to tapping new customers and also providing
service to existing RLIC policyholders. LIFE INSURANCE SCRIPT IN
RELIANCE LIFE PLAZA Life insurance script in life plaza details in
the following process:-- How to start? Good Morning Sir/Madam, I am
___________ (Name), from Reliance Life Insurance Co Ltd., and I am
currently working as a ... I help people in analyzing their present
financial
- 35. Reliance Life Insurance A Reliance Capital Company 35 | P a
g e condition and how they may further be benefited in building a
financially secured future. As discussed earlier with you, all we
will need is half an hour of your valuable time. I assure you that
you will not be under obligation to buy. Let us consider a
situation, where the clients age is 35 years, his spouse is aged 32
years and they have a child aged 2 Years. With your kind
permission, I will like to know about some of your details about
you and your family members, which will help us to do the right
analysis and find appropriate solution for you. I assure you, these
details will be kept strictly confidential and under no
circumstances be shared with anyone else. And at the end of the
discussion I will leave the paper with you. Before I start, I just
wanted to tell you that it would have been better if bhabhi ji also
joins us in this discussion. Step 1: Seeking Information Mr.
Rakesh, I would like to know your current age. 35 Years I would
like to know whether you are married. Yes If Response if Yes: If
you dont mind, may I know madams Name and Age. Sweta Sharma, 32
Years (If Married), Do you have any children ? Yes, I have a
daughter If Response if Yes: If you dont mind, I will also like to
know the sweet little ones name and age.
- 36. Reliance Life Insurance A Reliance Capital Company 36 | P a
g e Sanjana Sharma, 2 Years Apart from this, do you have any other
dependants? Yes, my parents If you dont mind, may I ask about your
current occupation and for how long are you involved in it? Where
did you start first? At the Age of 25 years, in Delhi How long do
you intend to keep earning from your current occupation? In other
words, by what age you plan to take off from your occupation and
enjoy your life Till 60 years If I have understood you correctly,
you are currently 35 years of age, with a family comprising of your
wife, aged 32 years and a children aged 2 years respectively. Name:
Rakesh Sharma Age: 35 Years Wife: Sweta Sharma Age: 32 Years
Daughter: Sanjana Sharma Age: 02 Years Step 2: Need Identification
As you have told me that you started your earning at the age of 25
years. And you wish to continue till the age of 60 years. I would
also like to inform you that As per World Health Organization (WHO)
report, the current Average Indian Male will go on to live till 75
years and the Average Indian Female will live 5 years more than
their male counterpart i.e. 80 years. Though I wish that you live
more than 100 years. Sir, can you pls tell me what is your monthly
expenses currently including house rent, food, child education,
medical expenses, transportation, etc. i.e. the cost to
- 37. Reliance Life Insurance A Reliance Capital Company 37 | P a
g e maintain your family as of now?. Approx. Rs. 20000 Consider if
you maintain the same life style and family 25 years back say in
late 80s or early 90s, your expense would have been same or
different? Different. Approx Rs. 2000 An increase of 10 Times. Am I
correct sir? Correct me if I am wrong, as you had shared with me
earlier , that you intend to take off from your work at the age of
60 years. Considering that inflation and other environmental
factors etc. what would be your monthly expense when you attain the
age of 60 i.e. 25 years from now to maintain your family? Will it
increase @ 10 times or more? I think it will go up to Rs. 100000 /
month So total expense for a year = 100000X12= 1200000 i.e. 12 Lacs
You will continue without income from 60 to 75 years i.e. around 15
years. So you will require 1200000X15 = 18000000 i.e. 1.8 Cr Since
you have started earning very early, I am very sure that you would
have saved for your old age. Can I know the approx value of your
savings for old age as on date? Rs. 1000000 i.e. 10 Lacs As we have
seen that your expense went up, in the same way value of your
saving will also go up in next 25 years. Can I know the approx
value of your saving at the age of 60. Rs. 8000000 i.e. 80 lacs So
you will still require 18000000-8000000= 10000000 i.e. 1 Cr. for
your old age. Have you ever thought of it sir?
- 38. Reliance Life Insurance A Reliance Capital Company 38 | P a
g e Step 3: Creating Urgency Lets assume that you are at the age 60
and I tell you about your requirement of Rs. 1 crore at that point.
Can you tell me about any investment avenue which can give you a
return of Rs.1 crore in such a short span of time. I dont think
there is any! But if you start provisioning for it at the age of 55
years, will it be easier for you or not? Sure Same thing if you
start at the age of 45 years, will it be little easier or not? Yes,
easier Which one will be the most easiest for you? If you start at
the age of 35 i.e. now or after it? At the age of 35. That is what
I was trying to convey you. There are so many ways in which you can
provision for it. You can invest in
- 39. Reliance Life Insurance A Reliance Capital Company 39 | P a
g e Bank, Share Market, Real estate, Gold etc. But I can tell you
about an avenue of investment which will cover your risk, will be
easier , will be cheap and is available for you if you wish to
start provisioning now. And that is INSURANCE Once you start
provisioning for it, the whole amount of 1 crore will be set aside
by insurance company for your family. You will be paying premium
for it in bit and pieces and not at once, which will be easier for
you. If you start now, the premium will be the lowest otherwise as
your age increases, premium will also increase. Now because you are
healthy, any insurance company will be willing to make provision
for your corpus of Rs. 1 crore. And as you know any one can catch
illness in this changing environment. Once anyone becomes ill, no
insurance company would like to bear his / her risk. In todays
world where there is no certainty of life, only insurance ascertain
you that the corpus which you wish to built will reach to you or
your family whatever the circumstances may be.
- 40. Reliance Life Insurance A Reliance Capital Company 40 | P a
g e Step 4: Proposing a Solution As per the risk appetite and
saving capacity of the customer, a solution can be proposed. If
customer wants to take risk on his investment to create the corpus
for his old age, then we can suggest him Unit Linked Insurance
product. In ULIPs, customer may get a return of 12-15% on his
investment in long run (As per the past history of share market).
Investment risk in market linked product is borne by the
policyholder. And if the customer does not want to take risk and
wants guaranteed return on his investment, then Traditional
insurance products can be offered. In traditional products,
customer will get a return in the range of 6-10% in long run.
Investment risk in traditional product is borne by insurer. It is
very much possible that customer may not be able to pay the premium
required for building a corpus of 1 crore at this point of time.
His current income may not permit it. But he can always start with
a small corpus of let us say 10-20 lacs with his present disposable
income. And as and when his income grows, rest of the corpus
- 41. Reliance Life Insurance A Reliance Capital Company 41 | P a
g e can be taken care of. Taking a small step towards building the
corpus for old age and then achieving it in phase by phase makes it
easier to achieve . A.4> ABOUT PROJECT The project deals with
the topic ULIP(Reliance classic plan-II):Breaking the myth and
repositioning as a product of choice. The project would also help
in understanding preference of people regarding private and public
insurance companies. The entry of foreign MNCs and the conductive
business environment fostered by the government, it is no wonder
that the re-entry of private insurance has marked a second coming
for the sector. In just five years, the sector has undergone a
makeover, offering more choice, better services, quicker
settlement, tighter regulation and greater awareness s the
environment become more and more competitive and services and
products become alike, creating a differentiation is becoming
extremely tough. Thus, the main objective of my project was to find
out the preference of people regarding insurance companies, which
would help R.L.I. employees to market their product. The study then
goes on to evaluate and analyze the findings so as to present a
clear picture of recent trends in the Insurance sector.
- 42. Reliance Life Insurance A Reliance Capital Company 42 | P a
g e
- 43. Reliance Life Insurance A Reliance Capital Company 43 | P a
g e SECTION :B RELIANCE LIFE INSURANCE LAUNCHES ULIP (RELIANCE
CLASSIC PLAN II)
- 44. Reliance Life Insurance A Reliance Capital Company 44 | P a
g e RELIANCE CLASSIC PLAN-II UNDER THIS PLAN THE INVESTMENT RISK IN
THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. Life is a
race: If you are not fast enough, you will get trampled. To keep
pace in the race of life where financial planning is one of the key
requirements, it is imperative that you move fast and act smart.
Plan early Invest Now Reliance Life Insurance Classic Plan - II, A
Unit Linked insurance plan works well for people in every stage of
life, from young investors to retirees Invest Now Invest Smart
Reliance Life Insurance Classic Plan - II helps you plan your
finances wisely, cover the
- 45. Reliance Life Insurance A Reliance Capital Company 45 | P a
g e risk arising due to loss of life and assumes all the
flexibilities required in a financial product. Key features -
Reliance Life Insurance Classic Plan - II Dual benefit of market
linked return and insurance protection. Amount equivalent to base
sum assured is payable in extra on account of accidental deaths.
Investment opportunity with flexibility - Choose from 8 pure
investment fund options Additional flexibility with options like
Systematic Transfer Plan &Premium Redirection. Option to pay
Top-up Premium(s). Liquidity in the form of partial withdrawals
after completion of five policy anniversaries. Exchange option to
take advantage of any new plans we may offer in the future. A host
of optional rider benefits to enhance protection cover. How does
the Reliance Life Insurance Classic Plan - II works? As a customer
you have the liberty to choose between eight fund options. The
premium contributions you make, net of premium allocation charges
are invested in funds of your choice. The units are allocated
depending on the price of units for the funds. The Fund Value is
the total value of units that you hold across all the unit-linked
funds. Sum Assured Minimum Sum Assured: The minimum sum assured
under the base plan depends up on the age at entry of the life
assured If the age at entry is If the age at entry is less than 45
years equal to or greater
- 46. Reliance Life Insurance A Reliance Capital Company 46 | P a
g e than 45 years Regular Higher of 10 times of Higher of 7 times
of Premium the annualised the annualised Policy premium or 1/2*
premium or 1/4* policy term policy term *Annualised premium
*Annualised premium Single 125% of the single 110% of the single
Premium Premium Premium Policy The minimum sum assured under Top-up
depends upon the age of the life assured at the time of payment of
top-up premium If the age at payment If the age at payment of top
premium is of premium is equal less than 45 years to or greater
than 45 years Top up Fixed sum assured of Fixed sum assured of
Premium 125% of the top up 110% of the top up Premium premium At
any point of time, the minimum death benefit shall be 105% of the
total premiums (including top-ups) paid. Maximum Sum Assured: The
following table shows the maximum sum assured for regular premium
payment optio
- 47. Reliance Life Insurance A Reliance Capital Company 47 | P a
g e Age at entry Maximum Sum Assured (last birthday) 30 times of
Annualised Premium subject 7 to 11 to maximum of ` 5 lakhs across
all policies (including base plan and top up) with Reliance Life 12
to 50 30 times of Annualised Premium 51 to 55 25 times of
Annualised Premium 56 to 60 20 times of Annualised Premium The
maximum sum assured under top up premiums will be fixed sum assured
of 125% of the top up premiums if the age of the life assured at
the time of payment of top up premium(s) is less than 45 years and
fixed sum assured of 110% of the top up premiums if the age of the
life assured at the time of payment of top up premium(s) is greater
than or equal to 45 years. The maximum sum assured (including base
plan and top up across all polices with Reliance Life Insurance
Company) shall not exceed ` 5 Lakhs, if the age of the life assured
is greater than or equal to 7 years but less than 12 years. At any
point of time, the minimum death benefit shall be 105% of the total
premiums (including top-ups) paid.
- 48. Reliance Life Insurance A Reliance Capital Company 48 | P a
g e SECTION:C ULIP PRODUCTS RELIANCE CLASSIC PLAN-II
- 49. Reliance Life Insurance A Reliance Capital Company 49 | P a
g e C.1> ULIP {ABOUT us. Reliance Life Insurance offers you
products that fulfill your savings and protection needs. Our aim is
to emerge as a transnational Life Insurer of global scale and
standard. Reliance Life Insurance Company Limited is a part of
Reliance Capital, under Reliance Group. Reliance Capital is one of
India's leading private sector financial services companies, and
ranks among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital has interests in
asset management and mutual funds, stock broking, life and general
insurance, proprietary investments, private equity and other
activities in financial services. Reliance Group also has presence
in Communications, Energy, Natural Resources, Media, Entertainment,
Healthcare and Infrastructure. C.2>ULIP {CHARGES. Charges and
Recovery of charges under the policy: Allocation charges: The
allocation charges are deducted from the premiums. The allocation
charges in
- 50. Reliance Life Insurance A Reliance Capital Company 50 | P a
g e respect of regular premium payment policies are stated below:
Policy Year Allocation charge as % of the annualised premium 1 year
8.00% 2nd year to 5th year 5.50% 6th year to 9th year 5.00% 10th
year onwards 3.00% The allocation charge on the single premiums
will be 2% of the single premium and allocation charge under the
top up will be 2% of the Top Up amount. Mortality charges: This
charge will be deducted from the fund value under the base plan and
top-up premium(s). The mortality charges will vary depending on 1.
The amount of life insurance cover 2. The attained age of life
assured 3. The occupation of the life assured 4. The health of the
life assured The standard mortality charges per annum under this
policy per` 1000/- sum assured are given in Annexure A. These
mortality charges will be deducted on a monthly basis at the
beginning of each policy month using 1/12th of the mortality rates.
Accidental Death Benefit Charges: Annual charge for Accidental
Death Benefit is `1 per 1000 Sum Assured and will be deducted on
monthly basis at the beginning of each policy month using 1/12th of
the charge. Discontinuance Charge
- 51. Reliance Life Insurance A Reliance Capital Company 51 | P a
g e The discontinuance charge under the regular premium payment
policy is as given below: The policy year during which the policy
is discontinued Discontinuance charge if the annualised premium is
less than or equal to ` 25,000 Discontinuance charge if the
annualised premium is greater than ` 25,000 1 Lower of 20% of
(Annualised premium or Fund value), subject to a maximum of `3,000
Lower of 6% of (Annualised premium or Fund value), subject to a
maximum of `6,000 2 Lower of 15% of (Annualised premium or Fund
value), subject to a maximum of `2,000 Lower of 4% of (Annualised
premium or Fund value), subject to a maximum of `5,000 3 Lower of
10% of (Annualised premium or Fund value), subject to a maximum of
`1,500 Lower of 3% of (Annualised premium or Fund value), subject
to a maximum of `4,000 4 Lower of 5% of (Annualised premium or Fund
value), subject to a maximum of `1,000 Lower of 2% of (Annualised
premium or Fund value), subject to a maximum of `2,000 5 and above
Nil Nil There are no discontinuance charges under single premium
and top up premiums. Partial Withdrawal Charge: Partial withdrawal
charge of ` 100 will be collected from the fund withdrawn, on every
partial withdrawal. Policy Administration Charge
- 52. Reliance Life Insurance A Reliance Capital Company 52 | P a
g e Under regular premium policies, ` 40 per month will be deducted
as Policy Administration Charge from 6th policy year till the end
of the policy term. Under single premium policies, ` 40 per month
will be deducted as Policy Administration Charge for the entire
policy term Fund management charge: Fund Name Annua l Rate Life
Corporate Bond Fund 1 (SFIN: ULIF02310/06/08LCORBOND01121) 1.25%
Life Money Market Fund 1 (SFIN: ULIF02910/06/08LMONMRKT01121) 1.25%
Life Gilt Fund 1 (SFIN: ULIF02610/06/08LGILTFUN01121) 1.25% Life
Equity Fund 3 (SFIN: ULIF04201/01/10LEQUITYF03121) 1.35% Life
Infrastructure Fund 2 (SFIN: ULIF04401/01/10LINFRAST02121) 1.35%
Life Midcap Fund 2 (SFIN: ULIF04501/01/10LMIDCAPF02121) 1.35% Life
Pure Equity Fund 2 (SFIN: ULIF04601/01/10LPUEQUTY02121) 1.35% Life
Balanced Fund 1 (SFIN: ULIF00128/07/04LBALANCE01121) 1.25%
Discontinued Policy Fund 0.5% Switching charge: There are 52 free
switches during any policy year. Subsequent switches if any will
have a fixed charge of` 100 per switch. Miscellaneous Charge
(Charge for Systematic Transfer Plan (STP) Option.) There is no
charge, the first time Systematic Transfer Plan Option is effected
for regular
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g e premium payment mode as well as top ups. Subsequently, a fixed
charge of `100 will be levied every time the Systematic Transfer
Plan Option is selected. There are no charges for cancellations of
STP option. Service Tax Charge This charge shall be levied on the
Allocation charge, Mortality charge, Accidental Death Benefit
charge, Policy administration charge, Fund Management Charge,
Switching charge, Miscellaneous charges on STP option and rider
premiums. The level of this charge shall be as per the rate of
Service Tax, declared by the Government from time to time. The
current rate of service tax is 10.30% (10% for service tax and 3%
education cess). The service tax on Fund management charge is
applied on actual fund management charge or the maximum fund
management charge fixed by the IRDA, whichever is higher. Recovery
of Charges Mortality Charges Mortality charges will be recovered by
cancellation of units at the prevailing unit price, in advance at
the beginning of each month. Accidental Death Benefit charges
Accidental Death Benefit charges will be recovered by cancellation
of units at the prevailing unit price, in advance at the beginning
of each month. Allocation charges The allocation charges are
deducted as percentage of premium (regular premium or single
premium or top up as the case may be) before allocation of units
each time a premium is received. Policy administration charge The
monthly Policy administration charge during the settlement period
will be deducted by cancelling units at the prevailing unit price
in advance at the beginning of the month. Fund Management charges
The Fund Management charges will be priced in the unit price of
each Fund on a daily basis. This will result in the adjustment of
NAV.
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g e Partial Withdrawal charge A Partial withdrawal charge of `100
will be deducted from the amount of fund withdrawn on every partial
withdrawal. Premium for rider benefits The premium for rider
benefits if selected will be collected over and above the premium
under basic plan. The frequency of rider premium will be same as
frequency of premium under basic plan. Service Tax Charge The
service tax charge will be collected as mentioned below: a. The
Service Tax charge on allocation charge will be deducted from the
premium along with the allocation charge. b. The Service Tax Charge
on Fund Management Charge will be priced in the unit price of each
Fund on a daily basis. c. The Service Tax charge on Policy
administration charge, Mortality charge, Accidental Death Benefit
charge, switching charge and Miscellaneous charges on STP option
will be recovered by cancellation of units at the prevailing unit
price. d. Service tax will also be applicable for rider premium and
has to be paid along with the rider premium. Switching charge
Switching charge will be recovered by cancellation of units at the
prevailing unit price. Miscellaneous Charge (Charge for Systematic
Transfer Plan (STP) Option.) Charge for Systematic Transfer Plan
(STP) Option will be recovered by the cancellation of units at the
prevailing unit price. Charges Levied by the Government in Future
In future the Company may decide to pass on any additional charges
levied by the governmental or any statutory authority to the
policyholder. Whenever the company decides to pass on the
additional charges to the policy holder, the method of collection
of these charges shall be informed to them. In the event that units
are held in more than one 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
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g e value in any fund goes down to the extent that it is not
sufficient to support the proportionate monthly charges, then the
same shall be deducted from the fund value of the other funds.
Revision in Rate of Charges The revision in charges if any ( except
the service tax charge) will take place only after giving three
months notice to the policyholders and after obtaining specific
approval of the IRDA. The service tax charge will be revised as and
when notified by the Government. If the policyholder does not agree
with the modified charges, they shall be allowed to withdraw the
units in the plans at the then prevailing unit value after paying
surrender charge if any and terminate the Policy. The Company
reserves the right to change the Fund Management charge. However,
the maximum FMC on any fund excluding discontinued policy fund will
be 1.35% p. a. and the maximum FMC on discontinued policy fund will
be 0.5% p. a. The policy administrative charge is subject to
revision at any time, but will not exceed` 80 per month. The
partial withdrawal charge, switching charge and the charge for
selecting STP option is subject to revision at any time, but will
not exceed` 500. The premium rates under Reliance Term Life
Insurance Benefit Rider, Reliance Life Insurance Family Income
Benefit Rider are guaranteed throughout the policy term. The
premium rates for Reliance New Major Surgical Benefit Rider and
Reliance New Critical Conditions (25) Rider, once applied on any
policy, will be guaranteed for the first three years of the policy.
After three years period, the Company may change the premium rates
with three months prior notice subject to the IRDA approval. Such
revised rates would be effective on all in-force policies and new
policies sold. C.3>ULIP {FAQs. What happens if I am unable to
pay my regular premiums? If you are unable to pay due regular
premiums within the grace period:
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g e A revival notice will be sent to the policyholder within
fifteen days from the date of expiry of the grace period. The
policyholder shall be entitled to 1. revive the policy, or 2. to
withdraw completely from the policy without any insurance benefit,
accidental death benefit and rider benefits. The policyholder has
to exercise any one of the options within 30days from the date of
receipt of the revival notice. During this period, the policy will
be treated as in-force with insurance and accidental death benefits
but the rider benefits will cease immediately. The policy will
participate in the performance of fund. Mortality charges,
Accidental Death Benefit charges and Policy Administration Charges
will be deducted from the fund value by cancellation of units. The
Fund Management Charge will be priced in the unit value. 1.
Revival: If the policyholder opts to revive the policy, the policy
continues with all the benefits. 2. Complete withdrawal from the
policy without any insurance benefit and rider benefits: In case
the policyholder chooses to withdraw the policy or does not
exercise any option, then the policy treatment would vary depending
on the number of completed policy years. Discontinuance of premium
within five years of inception of the policy: On discontinuance of
premium, the fund value under the base plan (including top-ups)
less applicable discontinuance charges less the outstanding loans
along with interest will be switched to Discontinued Policy Fund.
The insurance benefit, accidental death benefit and rider benefits
ceases immediately. The income earned on the fund shall be
apportioned to the discontinued policy fund. The proceeds of the
discontinued policies shall be payable only on completion of five
policy anniversaries. Discontinuance of premium after five years of
inception of the policy: On discontinuance of premium, the fund
value under the base plan (including top-ups) less applicable
discontinuance charges less the outstanding loans with the
interest, if any will be paid to the policyholder. Revival of
policy after non-payment of due premiums If the due premiums are
not paid within the grace period, a revival notice will be sent to
the policyholder within fifteen days from the date of expiry of the
grace period. The
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g e policyholder may revive a policy by the payment of the due
premium(s) at any time within a period of 30 days from the date of
receipt of the revival notice but before the maturity date of the
policy subject to satisfactory medical and financial underwriting.
In case the policyholder chooses to withdraw the policy or does not
exercise any option and if the policy has not completed five years
from the date of inception, the policy shall be treated as
discontinued. Policyholder can revive the discontinued policy
within two years from the date of discontinuance or expiry date of
policy term, whichever is earlier, by paying all the outstanding
premiums to the company If the basic plan is revived, the riders
can be revived by paying the arrears of premiums with interest at
the prevailing rate of interest. The current rate of interest is
9.0% p.a. This will be subject to satisfactory medical and
financial underwriting. What if I want to discontinue/surrender the
Policy? Surrender Value under the regular premium policy: The
surrender Value under the single premium policy will be the fund
value. Surrender value is acquired immediately on payment of the
single premium. However, the surrender value will be payable after
the completion of five policy anniversaries. There is no
discontinuance charge under single premium policy. If the
policyholder has availed loan under single premium policy, the loan
outstanding and the interest on loan outstanding will be recovered
first from the surrender value and the balance if any will be paid
to the policyholder. Whenever full surrender value of basic plan is
paid, the surrender value of any attaching top ups will also be
paid. Once a policy is surrendered in full, it cannot be
reinstated. Surrender Value under the top-up: The surrender Value
under the top up will be the fund value. Surrender value is
acquired immediately on payment of the top up premium. However,
Surrender value of top up can be paid after the completion of five
years from the date of payment of top up. There is no
discontinuance charge on the top ups. The surrender value is
therefore equal
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g e to the fund value under the top ups. Whenever full surrender
value of basic plan is paid, the surrender value of any attaching
top ups will also be paid. Foreclosure of the Policies in-force:
For the policies in force, if anytime during the tenure of the
policy but after five policy anniversaries, the fund value is less
than the charges for the next month, the policy will be foreclosed
by paying the fund value. Can I avail loan under this policy? Not
Applicable Can I change the mode of premium payment? The mode of
premium payment can be changed on the policy anniversary. Grace
Period for payment of premiums There is a grace period of 30 days
from the due date for payment of regular premiums. In case of
monthly mode, the grace period is of 15 days. A policy lapses if
premiums are not paid within the days of grace. C.4>ULIP
{FLEXIBILITY. RelianceLifeInsuranceClassicPlan-II Nomination:
Nominations will be allowed under this plan as per Section 39 of
the Insurance Act, 1938. The life assured, where he is the
Policyholder, may, at any time during the policy term, can make a
nomination for the purpose of payment of Benefits in the event of
his death. Where the Nominee is a minor, the Policyholder may also
appoint a person to receive the money during the minority of the
Nominee. Nomination may be made by an endorsement on the Policy and
by communicating the same in writing to the Company. Any change of
nomination, which may be effected before the termination of the
Policy shall also be communicated to the Company. In registering a
nomination, the Company does not accept any responsibility or
express any opinion as to its validity or legal effect.
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g e Assignment: Assignment will be allowed under this plan as per
section 38 of the Insurance Act, 1938. An assignment of the Policy
may be made by an endorsement upon the Policy itself or by a
separate instrument signed in either case by the assignee or
specifically stating the fact of assignment and duly attested. Only
the Policyholder may make the first assignment. Such assignment
shall be effective, as against the Company, from and upon the
service of a written notice to the Company and the Company
recording the assignment in its books. In case of assignment under
this Policy, the assignee would not be entitled to increase the
Death Benefit. In registering an assignment, the Company does not
accept any responsibility or express any opinion as to its validity
or legal effect. General Exclusion: The company will not pay any
additional sum assured on accidental death which results directly
or indirectly from any one or more of the following. However, the
basic sum assured is payable under these circumstances. i. an act
or attempted act of self-injury ii. participation in any criminal
or illegal act, iii. being under the influence of alcohol or drugs
except under direction of a registered medical practitioner, iv.
racing or practicing racing of any kind other than on foot, v.
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, vi.
participating in any riot, strike or civil commotion, active
military, naval, air force, police or similar service, or vii. 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. Suicide Exclusion: If the Life
Assured commits suicide for any reason, while sane or insane,
within 12 months from the date of commencement of this policy or
the date of any revival of the policy this policy shall be treated
as null and void, and the Company will limit the death benefit to
the Fund Value and will not pay any insured benefit
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g e How safe is your investment Unit Linked Life Insurance products
are different from the traditional insurance products and are
subject to the risk factors. The contribution paid in unit linked
insurance policies are subject to investment risks associated with
capital markets and NAVs of the units may go up or down based on
the performance of the fund and factors influencing the capital
markets and the policyholder is responsible for his/her decisions.
Reliance Life Insurance Company Limited is the name of the company
and Reliance Life Insurance Classic Plan - II is only the name of
the policy and does not in any way indicate the quality of the
policy, its future prospects or returns. The names of the Fund
Option viz Life Corporate Bond Fund 1, Life Money Market Fund 1,
Life Gilt Fund 1, Life Equity Fund 3, Life Infrastructure Fund 2,
Life Balanced Fund 1, Life Midcap Fund 2 and Life Pure Equity Fund
2 do not in any manner indicate the quality of the Fund Option or
their future prospects or returns. The Fund Option(s) do not offer
any guarantee or assure any guaranteed return; Investments in Units
are subject to market and other risks. Investment risk in
investment portfolio is borne by the Policyholder. There is no
assurance that the objectives of the Fund Option shall be achieved;
The Unit Price of the Units may fluctuate depending on factors and
forces affecting the capital markets and the level of interest
rates prevailing in the market; Past performance of the Fund
Options is not indicative of future performance of any of those
Fund Options. All Benefits payable under this Policy are subject to
tax laws and other fiscal enactments in effect from time to time.
The Company reserves the right to suspend the Allocation,
reallocation and/or cancellation of Units under extraordinary
circumstances such as extreme volatility of assets, extended
suspension of trading on stock exchange, natural calamities, riots
and other similar events or force major circumstances. C.5>ULIP
{BENEFITS. Life Cover Benefit: In the event of death of the life
assured provided the policy is in full force on the date of death,
the higher of Sum Assured under the base plan or the fund value
under the
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g e base plan as on the date of intimation of death Plus the higher
of Sum Assured under the Top-up or the fund value under the top-up
as on the date of intimation of death will be paid. In the event of
death of the life assured due to accident on or before age 65,
provided the policy is in force on the date of death, an additional
amount equal to the base sum assured will be paid. However if the
age at accidental death is less than 18 years, the maximum
additional sum assured payable for accidental death (across all
policies with Reliance Life) is up to Rs.5 Lakhs. The additional
sum assured on accidental death (including sum assured under
Reliance Accidental Death and Total and Permanent Disablement Rider
across all policies with Reliance Life) will not exceed Rs. 50
Lakhs. At any point of time, the minimum death benefit shall be
105% of the total premiums (including top-ups) paid. The policy
terminates on payment of death benefit. Maturity Benefit: On
survival of the Life Assured to the end of the policy term provided
the policy is in force and all due premiums are paid, the Fund
Value under the basic policy and top-ups, if any, will be paid. The
policy terminates on payment of maturity benefit. Rider Benefits:
The following optional riders are available under Regular Premium
polices, on payment of additional premium over and above the basic
premium provided conditions on riders (entry age, policy term, sum
assured) are satisfied: 1. Reliance New Major Surgical Benefit
Rider: Provides lump sum amount to cover surgical expenses from a
list of 33 surgeries including Open Heart surgery, Kidney
Transplant, Cornea transplantation, Transplant of Lungs and many
more. 2. Reliance New Critical Conditions (25) Rider: Provides lump
sum amount to take care of 25 critical conditions including Cancer,
Heart Attack, Paralysis, Major Organ transplant and many more. 3.
Reliance Term Life Insurance Benefit Rider: Provides additional
death benefit depending on the sum assured selected under the
rider. 4. Reliance Life Insurance Family Income Benefit Rider:
Provides a monthly benefit of 1% of sum assured every month
(i.e.12% per annum). The benefit is
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g e payable from the date of death till end of the rider policy
term or 10 years whichever is later, in the event of death/total
and permanent disablement due to accident or sickness, before the
maturity of the policy. These rider benefits can be selected on
commencement of the policy or on any policy anniversary during a
policy term. The Sum assured under the rider cannot be higher than
the sum assured under the basic plan. The sum of rider premiums
should not exceed 30% of the premiums paid under Basic Plan. When
the basic plan is lapsed, paid up, surrendered or forfeited, all
the rider benefits attaching to the base plan will also terminate.
Note: Please refer to the rider brochure on rider benefits for more
details. Computation of Net Asset Value (NAV): The NAV will be
computed as per the IRDA instructions vide circular no.:
IRDA/F&I/CIR/INV/173/08/2011 dated 29th July 2011. The NAV for
a particular fund shall be computed as: Market Value of investment
held by the fund plus the value of current assets less the value of
current liabilities and provisions, if any. This gives the net
asset value of the fund. Dividing by the number of units existing
at the valuation date (before creation/redemption of units), gives
the unit price of the fund under consideration. In case the
valuation day falls on a holiday, then the exercise will be done on
the following working day. We reserve the right to value less
frequently than daily in extreme circumstances, where the value of
the assets may be too uncertain. In such circumstances we may defer
valuation of assets until normality returns. Examples of such
circumstances are: A. When one or more stock exchanges which
provide a basis for valuation for a substantial portion of the
assets of the fund are closed otherwise than for ordinary holidays
B. When, as a result of political, economic, monetary or any
circumstances out of our control, the disposal of the assets of the
unit fund are not reasonable or would not reasonably be practicable
without being detrimental to the interests of the remaining unit
holders.
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g e C. During periods of extreme volatility of markets during which
surrenders and switches would, in our opinion, be detrimental to
the interests of the existing unit holders of the fund. D. In the
case of natural calamities, strikes, war, civil unrest, riots and
bandhs. E. In the event of any force majeure or disaster that
affects our normal functioning. F. If so directed by the IRDA.
Allocations 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. The allotment of units to the
policyholders will be done only after the receipt of premium
proceeds as stated below; 1. 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. 2. 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.) Renewal premiums received in advance will be kept in the
deposit account and will not earn any returns until the renewal
premium due date on which the same will be applied to the unit
funds. 3. In respect of premiums received or funds switched up to
3.00 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 unit price of the day on which the premium is received
or funds switched, shall be applicable. 4. In respect of premiums
received after 3.00 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 unit price of the next business day shall be
applicable. 5. In respect of premiums received with outstation
cheques or demand drafts at the place where the premium is
received, the closing unit price of the day on which cheques /
demand draft is realised shall be applicable. Redemptions: In
respect of valid applications received (e.g. surrender, maturity
claim, switch out etc) up to 3.00 p.m. by the insurer, the same
days closing unit price shall be applicable. In respect of valid
applications received (e.g. surrender, maturity claim, switch out
etc) after 3.00 p.m. by the insurer, the closing unit price of the
next business day shall be applicable. The unit price for each
segregated fund provided under this product shall be made available
to the public in the print media on a daily basis. The unit price
will also
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g e be displayed in the web portal of the company. Cancellation of
units: To meet fees and charges, and to pay benefits, the company
will cancel the units to meet the amount of the payments which are
due. If units are held in more than one unit linked fund, then the
company will cancel the units in each fund to meet the amount of
the payment. The value of units cancelled in a particular fund will
be in the same proportion as the value of units held in that fund
is to the total value of units held across all funds. The units
will be cancelled at the prevailing unit price. The Fund Management
charges will be priced in the unit price of each Fund on a daily
basis. C.6>ULIP {TAX AND BENEFITS.. Tax benefits: On policies
issued on or after 1st April, 2012, income tax benefit under
section 80C shall apply only to the extent of ten percent of
minimum sum assured during the entire term of the policy.
Additional conditions apply. On policies issued on or after 1st
April, 2012, income tax benefit under section 10(10D) shall be
available if premium payable for any of the years during the term
of the policy do not exceeds ten per cent of minimum sum assured
during the entire term of the policy.