Reliance Final Touch

8/14/2019 Reliance Final Touch

1/47

A Project Report On

Customer Satisfaction & Recruitment Of Financial

Advisors

For

Under The Guidance Of

MR. AMOL JADHAVMR. AMOL JADHAV

Submitted By

MR. ABHISHEK KOTHARIMR. ABHISHEK KOTHARI

( Rizvi Institute of Management Studies Research )

(PGDBM 2007 09)(PGDBM 2007 09)

1


2/47

ACKNOWLEDGEMENT

Any work of this magnitude requires inputs, efforts and encouragement of peoplefrom all sides. In compiling this project report, I have been fortunate enough toget active and kind cooperation from many people without whom my Endeavourswould not have been a success.

I take this opportunity to bestow my gratitude to all who helped me during thecourse of the project for their inspiring guidance and kind advice throughout theproject work.

I am highly thankful to the whole team of Reliance Life Insurance Company

Limited Company for providing me with the opportunity and facility of learning intheir organization. I would like to extend my deep gratitude to Mr. Rituraj Rawal(Sales Manager), and Mr.Sujit Kumar (Sales Manager)for their constantsupport andencouragement to carry out the research, as well as their team,especially for a most sincere effort put in to give this work the present shape.

I am also grateful to our project guide Mr.Amol Jadhav (The Programmecoordinator),who extended their complete support to make me deliver the best.

I owe a special thanks to all the respondents whom I interviewed in order to fulfillthe requirements of the project and the whole team of Reliance Life InsuranceCompany Limited for providing me with a comfortable environment to work.

2


3/47

TABLE OF CONTENTS

Executive Summary of Insurance What is Insurance

History of Insurance

Globalization of Insurance

Indian Insurance Industry

Functions of Insurance

Insurance Company

Life Insurance

About Life Insurance Council

Fact Sheet of Life Insurance Sector

Need of Life Insurance

Life Insurance v/s Other Saving

Reliance Capital Company Ltd

Reliance Capital

Reliance Life Insurance

Reliance General Insurance

Reliance Life Insurance Product

Financial Advisors at Reliance Life Insurance Role of Financial Advisors

Opportunities of Financial Advisors

Benefit of Financial Advisors

Illustration & Expectation

Methodology

Problems Identified During Survey

Result & Discussion

Recommendation & Conclusion

Questionnaire

3


4/47

WHAT IS INSURANCE?

Insurance in its basic form is defined as A contract between two parties wherebyone party called insurer undertakes in exchange for a fixed sum called premiums,

to pay the other party called insured a fixed amount of money on the happeningof a certain event."In simple terms it is a contract between the person who buys Insurance and anInsurance company who sold the Policy. By entering into contract the Insurancecompany agrees to pay the Policy holder or his family members a predeterminedsum of money in case of any unfortunate event for a predetermined fixed sumpayable which is in normal term called Insurance Premiums.

INSURANCE BUSINESS

Insurance business is divided into four classes :

1) Life Insurance2) Fire Insurance3) Marine Insurance and4) Miscellaneous Insurance.Life Insurers transact life insurance business; General Insurers transact the rest.

4


5/47

BRIEF HISTORY OF INSURANCE

The story of insurance is probably as old as the story of mankind. The sameinstinct that prompts modern businessmen today to secure themselves againstloss and disaster existed in primitive men also. They too sought to avert the evil

consequences of fire and flood and loss of life and were willing to make somesort of sacrifice in order to achieve security. Though the concept of insurance islargely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years.

SOME OF THE IMPORTANT MILESTONES IN THE LIFEINSURANCE BUSINESS IN INDIA ARE

1818: Oriental Life Insurance Company, the first life insurance company onIndian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurancecompany started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute toregulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government tocollect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act withthe objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over bythe central government and nationalised. LIC formed by an Act of Parliament, viz.LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government ofIndia.

The General insurance business in India, on the other hand, can trace its roots tothe Triton Insurance Company Ltd., the first general insurance companyestablished in the year 1850 in Calcutta by the British.

5


6/47

SOME OF THE IMPORTANT MILESTONES IN THE GENERALINSURANCE BUSINESS IN INDIA ARE

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transactall classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimumsolvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalisedthe general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the NationalInsurance Company Ltd., the New India Assurance Company Ltd., theOriental Insurance Company Ltd. and the United India Insurance CompanyLtd. GIC incorporated as a company

GLOBALISATION OF INSURANCE SECTOR

The experience after independence in insurance sector showed that the ultimate

objective remained largely unfulfilled due to the relatively low spread of insurancein the country the efficient and quality functioning of the public sector insurancecompanies and the untapped potential for mobilizing long term financialresources to finance the growth of infrastructure, the government set up aninsurance returns Committee in April, 1993 under the chairmanship of R. N.Malhotra, to suggest reforms in the insurance sector including improving thefunctioning of the LIC, GIC and strengthening the regulatory system. Thecommittee submitted its report to union finance minister on 7-01-1994,recommending a phased program of liberalization and called for a private sectorentry and restructuring ofLIC and GIC. The subsequent government moved aninsurance bill but it was not passed, the next government moved on insurance bill

again in wards the government introduced the insurance regulatory Developmentauthority (IRDA) Bill in parliament with some changes in the original structure thegovernment of India created history on October private sector companies. 1998,which was referred back to a select committee of parliament after wards thegovernment introduced the insurance regulatory Development authority (IRDA)Bill in parliament with some changes in the original structure the government ofIndia created history on October private sector companies.

6


7/47

INDIAN INSURANCE INDUSTRY

Insurance may be described as a social device to reduce or eliminate risk of lifeand property. Under the plan of insurance, a large number of people associatethemselves by sharing risk, attached to individual. The risk, which can be insured

against include fire, the peril of sea, death, incident, & burglary. Any riskcontingent upon these may be insured against at a premium commensurate withthe risk involved. Insurance is actually a contract between 2 parties whereby oneparty called insurer undertakes in exchange for a fixed sum called premium topay the other party happening of a certain event. Insurance is a contractwhereby, in return for the payment of premium by the insured, the insurers paythe financial losses suffered by the insured as a result of the occurrence ofunforeseen events. With the help of Insurance, large number of people exposedto a similar risk make contributions to a common fund out of which the lossessuffered by the unfortunate few, due to accidental events, are made good.

7


8/47

FUNCTIONS OF INSURANCE

The functions of Insurance can be bifurcated into two parts:1. Primary Functions2. Secondary Functions

3. Other Functions

1. The primary functions of insurance include the following:

Provide Protection:The primary function of insurance is to provide protection against future risk,accidents and uncertainty. Insurance cannot check the happening of the risk, butcan certainly provide for the losses of risk. Insurance is actually a protectionagainst economic loss, by sharing the risk with others.

Collective bearing of risk:

Insurance is a device to share the financial loss of few among many others.Insurance is a mean by which few losses are shared among larger number ofpeople. All the insured contribute the premiums towards a fund and out of whichthe persons exposed to a particular risk is paid.

Assessment of risk:Insurance determines the probable volume of risk by evaluating various factors

that give rise to risk. Risk is the basis for determining the premium rate also

Provide Certainty:Insurance is a device, which helps to change from uncertainty to certainty.

Insurance is device whereby the uncertain risks may be made more certain.

2. The secondary functions of insurance include the following:

Prevention of Losses:Insurance cautions individuals and businessmen to adopt suitable device toprevent unfortunate consequences of risk by observing safety instructions;installation of automatic sparkler or alarm systems, etc. Prevention of lossescause lesser payment to the assured by the insurer and this will encourage formore savings by way of premium. Reduced rate of premiums stimulate for morebusiness and better protection to the insured.

Small capital to cover larger risks:Insurance relieves the businessmen from security investments, by paying smallamount of premium against larger risks and uncertainty.

8


9/47

Contributes towards the development of larger industries:Insurance provides development opportunity to those larger industries havingmore risks in their setting up. Even the financial institutions may be prepared togive credit to sick industrial units which have insured their assets including plantand machinery.

3. The other functions of insurance include the following:

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

Source of earning foreign exchange:Insurance is an international business. The country can earn foreign exchange byway of issue of marine insurance policies and various other ways.

Risk Free trade:Insurance promotes exports insurance, which makes the foreign trade risk freewith the help of different types of policies under marine insurance cover.

LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) was formed in September, 1956 by anAct of Parliament, viz., Life Insurance Corporation Act, 1956, with capitalcontribution from the Government of India. The then Finance Minister, Shri C.D.Deshmukh, while piloting the bill, outlined the objectives of LIC:

To conduct the business with the utmost economy, in a spirit of trusteeshipto charge premium no higher than warranted by strict actuarialconsiderations.

To invest the funds for obtaining maximum yield for the policy holdersconsistent with safety of the capital.

To render prompt and efficient service to policy holders, thereby makinginsurance widely popular.

9


10/47

Since nationalization, LIC has built up a vast network of 2,048 branches, 100divisions and 7 zonal offices spread over the country. The Life InsuranceCorporation of India also transacts business abroad and has offices in Fiji,Mauritius and United Kingdom. LIC is associated with joint ventures abroad in thefield of insurance, namely, Ken-India Assurance Company Limited, Nairobi,

United Oriental Assurance Company Limited, Kuala Lumpur and Life InsuranceCorporation (International) E.C. Bahrain. The Corporation has registered a jointventure company in 26th December, 2000 in Kathmandu, Nepal by the name ofLife Insurance Corporation (Nepal) Limited in collaboration with Vishal GroupLimited, a local industrial Group. An off-shore company L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001 to tap the African insurance market.

GENERAL INSURANCE:

General insurance business in the country was nationalised with effect from 1st

January, 1973 by the General Insurance Business (Nationalisation) Act, 1972.More than 100 non-life insurance companies including branches of foreigncompanies operating within the country were amalgamated and grouped into fourcompanies, viz., the National Insurance Company Ltd., the New India AssuranceCompany Ltd., the Oriental Insurance Company Ltd., and the United IndiaInsurance Company Ltd. with head offices at Calcutta, Bombay, New Delhi andMadras, respectively.

10


11/47

General Insurance Corporation (GIC) which was the holding company of the fourpublic sector general insurance companies has since been delinked from thelater and has been approved as the "Indian Reinsurer" since 3rd November2000. The share capital of GIC and that of the four companies are held by theGovernment of India. All the five entities are Government companies registered

under the Companies Act.

The general insurance business has grown in spread and volume afternationalisation. The four companies have 2699 branch offices, 1360 divisionaloffices and 92 regional offices spread all over the country. GIC and itssubsidiaries have representation either directly through branches or agencies in16 countries and through associate/ locally incorporated subsidiary companies in14 other countries.

A wholly- owned subsidiary company of GIC, i.e. Indian International Pvt. Ltd. isoperating in Singapore and there is a joint venture company, viz. Kenindia

Assurance Ltd. in Kenya. A new wholly owned subsidiary called New IndiaInternational Ltd., UK has also been registered.

SHARE OF GROWTH IN MARKET

13.35

6.59

4.564

2.913.21 3.08

2.26

1.36 1.470.74

0.070

2

4

6

8

10

12

14

16

ICIC

ILomba

rd

Relia

nce

Gener

al

Bajaj

Allianz

Orient

al

IFFC

O-Tok

io

Unite

dIndia

NewInd

ia

Nation

al

Roya

lSun

daram

TataAI

G

Chola

mandla

m

HDFC

Chub

b

Rs.

bn

Source: IRDA (April 06 Feb 07)

11


12/47

WHAT IS IRDA?

The Insurance Regulatory and Development Authority (IRDA) is a nationalagency of the Government of India, based in Hyderabad. It was formed by an actof Indian Parliament known as IRDA Act 1999, which was amended in 2002 to

incorporate some emerging requirements. Mission of IRDA as stated in the act is"to protect the interests of the policyholders, to regulate, promote and ensureorderly growth of the insurance industry and for matters connected therewith orincidental thereto."

Role of IRDA

IRDAs primary function is to protect consumer interests. This means ensuringproper disclosure, keeping prices affordable but also insisting on somemandatory products, and most importantly making sure that consumers get paidby insurers. Further, ensuring the solvency of insurers is a very important function

of regulatory authority. IRDA has evolved a set of operational guidelines to dealwith maintaining the solvency of insurers. Growth of insurance business entailsbetter education and production to customers, creating better incentives foragents and intermediaries. It has evolved guidelines on the entry and functions ofsuch intermediaries. Licensing of agents and brokers are required to check theirindulgence in activities such as twisting, fraudulent practices, rebating andmisappropriation of funds.

INSURANCE COMPANIES (INDIA):

IRDA has so far granted registration to 12 private life insurance companies and 9general insurance companies. If the existing public sector insurance companiesare included, there are currently 13 insurance companies in the life side and 13companies operating in general insurance business. General InsuranceCorporation has been approved as the "Indian reinsurer" for underwriting onlyreinsurance business. Particulars of the Indian Insurance companies includingboth life insurance companies and general insurance companies is given below:

LIFE INSURERS

Public Sector

Life Insurance Corporation of India

Private SectorReliance Life Insurance Company LimitedAllianz Bajaj Life Insurance Company LimitedBirla Sun-Life Insurance Company LimitedHDFC Standard Life Insurance Co. LimitedICICI Prudential Life Insurance Co. Limited

12


13/47

ING Vysya Life Insurance Company LimitedMax New York Life Insurance Co. LimitedMetLife Insurance Company LimitedOm Kotak Mahindra Life Insurance Co. Ltd.SBI Life Insurance Company Limited

TATA AIG Life Insurance Company LimitedAMP Sanmar Assurance Company LimitedDabur CGU Life Insurance Co. Pvt. Limited

GENERAL INSURERS

Public SectorNational Insurance Company LimitedNew India Assurance Company LimitedOriental Insurance Company LimitedUnited India Insurance Company Limited

Private SectorBajaj Allianz General Insurance Co. LimitedICICI Lombard General Insurance Co. Ltd.IFFCO-Tokio General Insurance Co. Ltd.Reliance General Insurance Co. LimitedRoyal Sundaram Alliance Insurance Co. Ltd.TATA AIG General Insurance Co. LimitedCholamandalam General Insurance Co. Ltd.Export Credit Guarantee CorporationHDFC Chubb General Insurance Co. Ltd.

REINSURERGeneral Insurance Corporation of India

Where will the Indian market be in 2020?

Vision 2020 identified the following factors as the engines of economic growth inIndia: Rising education level, rates of technological innovation, cheaper andfaster communication, availability of information, and globalization. It makes nomention of the financial sector. Economic growth does not take place in vacuum.There are two critical ingredients needed. First, there has to be a well-definedlegal environment. Legal framework has big impact on the development of thefinancial sector. As a result, it also has a huge impact on economic growth.Second, there has to be a well functioning financial market.

13


14/47

WHAT IS LIFE INSURANCE?

Life insurance offers a way to replace the loss of income that occurs whensomeone dies (usually the person who produces the majority of income in afamily situation). It is a contract between you as the insured person and the

company or "carrier" that is providing the insurance. If you die while the contractis in force, the insurance company pays a specified sum of money free of incometax "cash benefits" to the person or persons you name as beneficiaries.

A good life insurance program does more than just replace the loss of incomethat occurs if you die. It should also provide money to cover the new costs thatarise after your death funeral expenses, taxes, probate costs, the need forhousekeepers and child care, and so on. And these cash benefits should providefor your family's future needs as well, including college education for yourchildren and part or all of your spouse's retirement needs. In almost all cases,your beneficiary can use the cash benefits in the way he or she sees fit, without

restriction.

Some types of life insurance permanent life insurance policies have a cashvalue that you can obtain by cashing out the policy or by borrowing against it.Though it can seem attractive, most financial experts agree that this featureshould be seen as a secondary purpose of life insurance. Another type ofinsurance is term life insurance policies are available as well. To learn more clickthe respected link.

ABOUT LIFE INSURANCE COUNCIL

It is a Statutory body under the Insurance Act 1938 and the Council is theindustry association representing 17 life insurance companies operating in India.Since nationalization of life insurance industry in 1956 there was no felt role forthe Council . On the opening up of the sector the Council was revived through anorder from the IRDA. The total Assets held by its Members stand close to Rs.7,00,000 Crores with nearly 22 Crores policies in force and the sector employsclose to 2,00,000 persons. Councils mission is to play a significant andcomplementary role in transforming Indias life insurance industry into a vibrant,trustworthy and strong sector contributing to the overall development of theeconomy.

LIFE INSURANCE SECTOR : FACT SHEET

India is emerging as one of the two of the largest markets in the world for lifeinsurance products, the other being China. In the case of India, the three keydrivers of growth are a large insurable population, a high savings rate, roughly atabout 25 per cent and a low penetration, at a mere 2.3 per cent. In the 11 monthsof fiscal year 2004-05, life insurance companies collected premia worth Rs 172billion and the market grew by a whopping 32.4 per cent during the year. Of this,

14


15/47

the public sector Life Insurance Corporation (LIC) had the lion's share of themarket with premia totaling Rs 134 billion. Private sector players recorded aspectacular growth of 129 per cent over the last year, compared to LIC's growthof 18 per cent. India's GDP growth rate of 6 per cent per annum holds greatpotential for the sector. According to one estimate real life premia are expected to

grow at a compounded annual rate of 15 per cent over the next ten years.

How does India's life insurance market compare with China's? While India'smarket is currently the fifth largest, China's is the third largest in Asia after Japanand Korea. Low penetration rate of insurance products is common to India andChina - at just about 2.3 per cent. In China, the savings rate is at 35 per centwhile for India it is a little lower at 25 per cent. A large part of the growth of the lifeinsurance market in China was driven by the conversion of bank deposits intoendowment products. Demographically, China's population is ageing faster thanIndia's.

DO YOU REALLY NEED LIFE INSURANCE?

If there is someone who would suffer economic hardship if you died, then theanswer is yes... you need life insurance! Families with young children have aclear need for life insurance. If both spouses work, the loss of one income willcause the family immediate economic hardship and make it harder for them torealize future goals, such as paying for the children's' education. But even if onespouse works "inside the home" and doesn't bring in a formal income, his or herdeath will require the surviving spouse to hire child care, housekeepers and otherprofessionals to help run the household - and that can be a significant newexpense.

If you are married without children or single, then you may need life insurance toprotect your partner or surviving family members against the costs associatedwith your death. Funeral expenses, probate and administrative fees, outstandingdebts, special obligations to charities, and federal and state taxes are costs thatall of us must consider. And, they can add up quickly. Unless you already havesufficient financial resources, your survivors will probably need life insurance tocover these expenses.

WHAT HAPPENS TO YOUR FAMILY IF YOU DON'T HAVEENOUGH COVERAGE?

Under any circumstances, the loss of a loved one is a traumatic experience. But,if your family is also left without sufficient money to meet basic living needs orprepare for future goals, they will have to cope with a financial crisis at the sametime. Depending upon their current financial resources and ability to "get back ontheir feet" emotionally and financially, your family might be forced to move to aless desirable home or community, abandon education and career plans, reorderfamily priorities (such as the amount of time spent with the children) and, ingeneral, cut back on the quality of life you have worked hard to achieve.

15


16/47

Your family might even be forced to go into debt simply to pay the expenses, likefuneral costs, taxes, and medical bills, that result from your death. A moment'sreflection will tell you that the lack of sufficient life insurance coverage when aloved one dies can have devastating consequences for a family...consequencesthat can last for years.

WHAT TYPE OF RISK ARE YOU?

Whether you know it or not, you are a "risk" in the eyes of insurance companies.If you are like most people you're not an Olympic athlete but you don't haveserious health problems then you are probably what is called a "standard risk."Standard risk individuals qualify for an insurance company's standard rates. Ifyou are in better than average health though, you could be a "preferred risk" andqualify for lower, preferred rates.

LIFE INSURANCE V/S OTHER SAVINGS

Contract of InsuranceA contract of insurance is technically known as uberrima fides, which means it isa contract of utmost good faith. In this principle, you have the doctrine ofdisclosing all material facts and that applies to all forms of insurance. Anymisrepresentation, fraud or non-disclosure in any document leading to theacceptance of the risk will render the insurance contract null and void.

ProtectionLife insurance assures payment of the entire amount assured (along withbonuses, wherever applicable) in case of demise, whereas in other savings

schemes, only the amount saved (with interest) is payable.

Aid to ThriftLife insurance schemes allow thrift, that is, it allows long-term savings becausepremium payments can be made through an easy instalment facility. Premiumpayments can be monthly, quarterly, half-yearly or yearly. Some insuranceschemes provide a convenient method of paying premium each month bydeducting the amount from your income.

Security on LoanGenerally, a life insurance policy is accepted as security, even for a commercial

loan. You can acquire loans on the sole security of a policy that has acquired loanvalue.

Tax ReliefThe best way to enjoy deductions on income tax and wealth tax is through lifeinsurance. The deductions are available for amounts paid by way of premium forlife insurance subject to the prevailing income tax rates. You can also avail of

16


17/47

provisions in the law for tax relief, in which case you, as the assured, can pay alower premium for the insurance than what you normally pay.

Easy Liquidity at Periodic IntervalsYou can avail of money when you need it if you have taken a suitable insurance

plan, or a combination of plans. It will help you meet certain financial needs asand when the need arises. Situations such as childrens education, marriage orany other need for cash can be made less stressful with the help of such policies.You can also use policy money at the time of retirement from service, or for anyother purpose such as purchase of a house, investments, etc.

How to Save Tax?

You should always consider tax planning as a necessary exercise in yourfinancial planning process. How much tax you can save depends on factors likerisk appetite, investment objective and tenure of investment.

Section 88Prior to the Finance Bill 2005, provisions for tax rebates fell under the gamut ofSection 88. To claim tax benefits under this Section, you would have had to makeinvestments of up to Rs. 1,00,000 in Public Provident Fund (PPF), NationalSavings Certificate (NSC), tax-saving funds (also referred to as Equity LinkedSaving SchemesELSS) and infrastructure bonds. The problem with thisSection was that there were caps on the amount you could invest in each tax-saving instrument and there was no flexibility in choosing the tax-savinginstruments. Section 88 decided everything for you.

Section 80CIn the Finance Bill 2005, Section 88 was scrapped and it gave way to the newSection 80C. Under this section, you can invest up to Rs. 1,00,000 in tax-savinginstruments, but the biggest advantage is that you can make your owninvestment choices, i.e. you can decide how to spread your investment of Rs.1,00,000 over PPF, NSC, ELSS and infrastructure bonds.

Distribution Channels

Agents Individual and Corporate Agents

Brokers Bancassurance

Referral Arrangements

Direct Marketing

Distribution of business channel wise (Life)

Individual Agents 88.65%

Corporate Agents 6.82%

17


18/47

Brokers 0.35%

Direct Business 2.58%

Others (Referral Arrangement) 1.60%

No. of Intermediaries

Direct Agents - 1.254 Mn

Corporate Agents 3112 (Life) + 1686 (non-life)

TPAs: 24

Brokers: 226

Retail business in non-life channeled through agents, commercial lineshandled by insurance brokers and corporate agents

18


19/47

RELIANCE CAPITAL COMPANY LTD

RELIANCE CAPITAL

Reliance Capital Ltd is a part of the Reliance - Anil Dhirubhai AmbaniGroup, and is ranked among the 25 most valuable private companies inIndia.

Reliance Capital is one of India's leading and fastest growing privatesector financial services companies, and ranks among the top 3 privatesector financial services and banking groups, in terms of net worth.

Reliance Capital has interests in asset management and mutual funds, lifeand general insurance, private equity and proprietary investments, stockbroking, depository services, distribution of financial products, consumerfinance and other activities in financial services.

The Reliance Anil Dhirubhai Ambani Group is one of India's top 2 businesshouses, and has a market capitalization of over Rs.2,90,000 crore (US$75 billion), net worth in excess of Rs.55,000 crore (US$ 14 billion), cashflows of Rs. 11,000 crore (US$ 2.8 billion) and net profit of Rs. 7,700 crore(US$ 1.9 billion).

19


20/47

OUR FOUNDER

Few men in history have made as dramatic a contribution to their countryseconomic 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 thetrue genius of Dhirubhai: The corporate visionary, the unmatched strategist, theproud patriot, the leader of men, the architect of Indias capital markets, thechampion of shareholder interest.

But the role Dhirubhai cherished most was perhaps that of Indias greatest wealthcreator. In one lifetime, he built, starting from the proverbial scratch, Indiaslargest private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital ofbarely US$ 300 (around Rs 14,000). Over the next three and a half decades, heconverted this fledgling enterprise into a Rs 60,000 crore colossusanachievement which earned Reliance a place on the global Fortune 500 list, thefirst 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 marketwas a place patronized by a small club of elite investors which dabbled in ahandful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retailinvestors to participate in the unfolding Reliance story and put their hard-earnedmoney 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 greatstories of mutual respect and reciprocal gain in the Indian markets.Under Dhirubhais extraordinary vision and leadership, Reliance scripted one ofthe greatest growth stories in corporate history anywhere in the world, and wenton to become Indias largest private sector enterprise.

Through out this amazing journey, Dhirubhai always kept the interests of theordinary 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 worldslargest shareholder families.

20


21/47

BUSINESS OVERVIEW

Reliance Capital has interests in asset management and mutual funds, life andgeneral insurance, private equity and proprietary investments, stock broking,depository services, distribution of financial products, consumer finance andother activities in financial services.

Reliance Mutual Fund is India's no.1 Mutual Fund. Reliance Life Insurance isIndia's fastest growing life insurance company and among the top 4 privatesector insurers. Reliance General Insurance is India's fastest growing generalinsurance company and the top 3 private sector insurers. Reliance Money is thelargest brokerage and distributor of financial products in India with more than 2million customers and the largest distribution network. Reliance Consumerfinance has disbursed loans of over Rs.7,000 crores at the end of March 2008.

Reliance Capital has a networth of Rs.6,086 crores (US$ 1.5 billion) and totalassets of Rs. 16,371 crores (US$ 4.1 billion) as of March 31, 2008 and over21,000 employees.

A part of the Reliance Anil Dhirubhai Ambani Group

Reliance Communications

Reliance Capital

Reliance Energy

Reliance Natural Resources

Entertainment

Media

Healthcare

Infrastructure

VISION

Empowering everyone live their dreams.

MISSION

Create unmatched value for everyone through dependable, effective, transparentand profitable life insurance and pension plans.

21


22/47

OUR GOAL

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

Emerge as transnational Life Insurer of global scale and standard. Create best value for Customers, Shareholders and all Stake holders

Achieve impeccable reputation and credentials through best businesspractices.

RELIANCE LIFE INSURANCE

Reliance Life Insurance is amongst the top four (in terms of monthly newbusiness premium) private sector life insurance companies in India.

Reliance Life forayed into the Life Insurance Industry by completelyacquiring AMP Sanmar.

The new brand Reliance Life Insurance Company was launched on 1stFeb 2006.

Reliance Life Insurance is the first ever acquisition in India in theInsurance market and having paid-up capital is Rs 300 crores.

The New Business Premium Income was Rs 2,754 crores (US$ 684

million) for the year as against Rs. 932 crores in the previous year, anincrease of 195%.

Total number of policies in force as on March 31, 2008 were 14,48,200 asagainst 5,15,680 as on March 31, 2007, an increase of 181%.

During the year, 4 new schemes were launched, Reliance Wealth + Healthplan; Reliance Secured Child Plan, Reliance Automatic Investment Planand Reliance Total Investment Plan. Reliance Life offers 26 products, ofwhich 21 are targeted at individuals and 5 at group business.

The distribution network was increased to 744 branches at the end ofMarch 31, 2008 against 156 branches at the end of March 31, 2007.

The number of agents at the end of the year was as 184,201 as against95,711 agents at the end of the previous year, an increase of 92%.

The policyholders funds under management increased to Rs.3,284 croresas at March 31, 2008 against Rs. 1,802 crores as at March 31, 2007.

22


23/47

Reliance Life Insurance will endeavour to attain a leadership position inthe market over the next few years, by further expanding andstrengthening its distribution network and offering a diverse array ofproducts to suit the varied and specific needs of individual customers.

RELIANCE LIFE INSURANCE

23


24/47

RELIANCE GENERAL INSURANCE

Reliance General Insurance, a part of the Reliance - Anil Dhirubhai AmbaniGroup and a Subsidiary of Reliance Capital, is one of the first non-life companies

to get the license from the IRDA. Reliance General Insurance is India's fastestgrowing general insurance company and the top 3 private sector insurers.Gross Direct Premium for the year ended March 31, 2008 was Rs 1,946 crores(US$ 484 million) as against Rs. 912 crores in the corresponding previous period,an increase of 113%.The distribution network has increased to 218 branches at the end of March 31,2008 as against 85 branches at the end of March 31, 2007.Reliance General Insurance (RGI) offers auto insurance, health insurance, homeinsurance, property insurance, travel insurance, marine insurance, commercialinsurance and other speciality insurance products.

24


25/47

INSURANCE PRODUCTS

PROTECTION PLANS

In todays uncertain world, there could be calamity at every step of the life. It is up

to you to ensure that your family stays protected always. Reliance ProtectionPlans helps you do exactly the same. You have a wide range of options tochoose a plan from. Right from limited period plans to lifetime protection plans,you can opt for the one that suits your lifestyle. While we understand that nothingcan compensate for the loss of a life, we intend to provide you the peace of mind.Investing in Reliance Protection Plans would mean your familys future is in safehands.

Protection Plans types:

Reliance Term plan

Reliance Simple Term plan

Reliance Special Term plan

Reliance Credit Guardian plan

Reliance Special Credit Guardian plan

Reliance Endowment plan

Reliance Special Endowment plan

Reliance Connect 2 Life plan

Reliance Whole Life plan

Reliance Wealth + Health plan

Reliance Cash Flow plan

25


26/47

SAVINGS & INVESTMENT PLANS

In life, you have always given your family whatever they have wanted. Yet, thereare some promises you have to fulfill, such as taking your family for a vacation, orbuying that dream house.

Set aside some money to achieve these specific goals with the help of RelianceSavings & Investment Plans. The plan allows you to experience the joys of lifeand provide for your familys needs.Enjoy life without worrying about the promises you have madewe are here tofulfill them.

Savings & Investment Plans Types:

Reliance Super Invest Assure Plan

Reliance Total Investment Plan Series I - Insurance


Reliance Automatic Investment plan

Reliance Money Guarantee plan

Reliance Cash Flow plan

Reliance Market Return plan

Reliance Endowment plan

Reliance Special Endowment plan

Reliance Whole Life plan

Reliance Golden Years Plan

Reliance Golden Years Plan Value

Reliance Golden Years Plan Plus

Reliance Connect 2 Life plan

26


27/47

RETIREMENT PLANS

You are a young and earning individual. The income you earn allows you to enjoylife, your only worry being whether you will be able to continue the same lifestyleafter retirement.

A Reliance Retirement Plan will help you save money for your retirement. Itensures that you continue to get some income after retirement thereby ensuringthat you do not have to depend on any other person or make any compromisesto maintain the same lifestyle. Invest in a Reliance Retirement Plan today andenjoy life after retirement on your own terms.

Retirement Plans Types:

Reliance Total Investment Plan Series II - Pension

Reliance Golden Years Plan

Reliance Golden Years Plan Value

Reliance Golden Years Plan Plus


Reliance Automatic Investment Plan

Reliance Money Guarantee Plan

CHILD PLANS

Being a parent is one of the joys of life. Your child looks up to you and dependson you for love, protection and support. You want to provide your child with thebest in life.

The Reliance Child Plan helps you save systematically so that you can secureyour childs future needs. Be it higher education, his or her first home or any otherrequirement, you will always be there for your child when he or she needs you.

So, invest in a Reliance Child Plan right awayit is the best gift you could evergive your child.

Child Plans Types:

Reliance Child plan

27


28/47

Reliance Secure Child plan


ADVISORS AT RELIANCE

Financial AdvisorPlan your investments to achieve your financial goals Identify the real gaps inyour financial plans after factoring for inflation Get a complete picture of yourinvestment portfolio.

As aReliance Life Insurance Advisor, the sky is not the limityou can go beyond.--In India, ever since the insurance industry has opened up,opportunities for insurance companies have become limitless. To tapthis opportunity, they require insurance agents because agents are one

of the most significant modes of bringing in much-needed business tothe company.At Reliance Life Insurance, you will not merely be an insurance agentyou will be a Financial Advisor. You will have an important role to playbecause you have to give valuable advice to prospective customersabout their financial planning.

Who can become an Agent?

Person, that is an individual, or a firm, company formed under companies act an

become an agent.

What is an Examining Body?

It is an institution which conducts pre _recruitment test for the insurance agentsand recognized by the Insurance Regulatory and Development Authority.

What is license?

It is a certificate to act as an insurance Advisor issued by the authority. License isa must before starting the life business.

What is training?

It is a compliance Training by IRDA for 50 hours and 9 days to become anadvisors. It includes orientation in insurance sales, service and marketing. Themodules for the training are approved by IRDA.

28


29/47

Can I become a Agent?

Yes you can, if you are 12 th standard or equivalent in urban areas. Otherwise 10

th or equivalent in rural areas. 18 years old and should have completed 50 hourstraining.

How much fee should I pay?

Fees payable to issue the license to act as an insurance agent is 500/- only.

How long is the license valid?

The licence is valid for 3 years and after that it is renewed based on renewaltraining of 25 hours and the fees payable is Rs.1000/-.

Is there anything I need to know before becoming an agent?

Yes, that is Code of conduct. It gives the do's and dont's of business afterbecoming an agent.

ROLE OF A FINANCIAL ADVISOR

As a Financial Advisor, you need to solicit business in the form of investmentstowards Life Insurance from your customers

Identify Prospects

Analyze and identify their needs Plan your Customers Finances

Offer the right kind of product

Close the sale

Seek Referrals

29


30/47

OPPORTUNITIES FOR RELIANCE ADVISORS

Make a good profit without a heavy investment.

Enjoy the benefit of residual income.

Maintain flexible work hours.

Earn attractive commissions.

Participate in exciting recognition programs.

Associate with Reliance - One of the strongest brands of the country.

Capitalize on the growing Insurance market.

Become a full time sales manager.

BENEFITS AVAILABLE FOR ADVISORS

Become an Advisor to really see the benefits. It is told that "seeing is believing '.We are ahead and we say "experiencing is believing" are you ready toexperiment.

This unique business helps you earn commission on every product sold Thecommission you earn at Reliance Life is one of the highest in the market (ashigh as 38%).

You also earn residual income (commission), every time your customer pays hispremium translates into recurring income over a long period of time (10 + years).

Apart from the commissions, you also are entitled to participate in contests thatare held regularly. You could win various gift items, such as Consumer Durables,International trips, Cars, etc.

Numerous recognition initiatives will give you the opportunity to be the best

30


31/47

Be a part of the Loyalty Program

Board of Advisors Meet the CEO of Reliance Life.

MDRT Club Chance to be the top financial professional in the world.

At Reliance Life, we are committed to providing the Best for our Financial

Advisors Career Plan is available for the advisor to grow from an Advisor to aBusiness Associate or join Reliance Life as a Manager.

The biggest benefit you earn as an Advisor is the Respect of your Customers

Immense satisfaction in providing Financial Security to your customers.

Being with them at times of dire need.

Securing their lives as well the lives of their loved ones.

ILLUSTRATION:

A top performing Financial Advisor can earn:

EXPECTATION FROM AN ADVISOR

Being a part of the Reliance team, we expect you to

Attend regular meetings that your Manager conducts

Participate in the training sessions as well as the review sessions

Abide by the companys policies and processes Source Business so that you earn your commission

31


32/47

MY SUMMER TRAINING

COMPANY: RELIANCE LIFE INSURANCE COMPANY LTD.

DURATION: 2 MONTHS (2 MAY- 30 JUNE,2008)

PROJECT TITLE: Market Survey & Corporate Financial Advisors

OBJECTIVE: Market Survey Regarding Customer Satisfaction And RecruitmentOf Financial Advisors For Reliance.

MY PROJECT

TOPIC: SURVEY ON SATISFACTION OF THE CUSTOMERS OF RELIANCELIFE INSURANCE COMPANY

SAMPLE SIZE: 60 CUSTOMERS

QUESTIONNAIRE

Name:-Address:-

Contact No.:-

1. Which policy you have purchased?

Retirement plan Saving & Investment plan Child plan Protection plan (Term)

2. For how many years you have purchased the policy?

3- 5 years 5-10 years 10-15 years 15 & above

3. What made you to choose Reliance life insurance?

Brand Image Quick settlement of ClaimsEfficient Services Low Cost Any Others

4. Who recommend you to buy the policy?

32


33/47

Retail Financial AdvisorTele caller Branch Walk-ins

5. Are you satisfied by the services provided by Reliance life insurance?

Yes

No

6. What are your reasons for satisfaction?

Inform the customer on a regular basis Efficient Services

Respond to complaints quicklyAny Other.

7. What are your reasons for dissatisfaction?

Policy Document not received on time Dissatisfied by the Agents services

Delay in claims settlementAny Others

8. Which of the following mode do you use to register your complaint?

Call Centre Email SupportBranch Walk-ins Letters & Faxes

9. Were you satisfied by the services provided by the mode you chose to register

your complaint?

Yes No

If No, then specify the reasons for the same

10. If Reliance Life Insurance, will come with new product, will you purchase it?

Yes No

11. Would you recommend our company to your friends/colleagues?

Yes No

33


34/47

METHODOLOGY

This report is the analysis of the meetings I had with various customers ofReliance life insurance Company. In such meetings emphasis was made onanalyzing the problems faced by the customers and identifying the areas where

improvements could be incorporated.

The methodology adopted for such meetings was through pre designedQuestionnaire, which analyzed the levels of satisfaction or dissatisfaction of thecustomers in order to study how successful the organization is at providing theproducts and/or services to the market place.

To achieve the objective of study the data has been collected from variousprimary and secondary sources.1. Primary data2. Secondary data

The term primary data refers to the statistical material which the researcher hasoriginated or collected first hand from the respondents personally. The primarydata has been collected through survey and observation methods for whichpurpose a 126 people were interviewed.

Secondary information means the data which the researcher has obtained fromsomeone elses records or findings. This secondary information has beencollected from various magazines, journals, reports, internet, governmentpublications etc.

Care has been taken to ensure the reliability and accuracy of this data.

34


35/47

PROBLEMS IDENTIFIED DURING THE SURVEY

Companies find that effectively handling customers with problems is critical totheir reputations as well as their bottom lines. When customers complain andthey are satisfied with the way their complaint is handled, they are more likely to

purchase another product or service from the same company. Companies thatresolve complaints on the first contact increase customer satisfaction and productloyalty, improve employee satisfaction, and reduce costs.

By making it easy for customers to complain, more customers registers theircomplaints to the companys call center, giving it greater opportunity to correct itsservice delivery or production processes. Customers who get their problemssatisfactorily and quickly solved tell their friends and neighbors, and they are noteasily won over by the competition.

When complaints are not promptly resolved, frustrated customers seek redress in

different agencies or at different parts or levels of the same agency, resulting induplicate effort and compounding costs. Thus, a poor complaint system leads tothe erosion of customers trust and confidence.

There are costs associated with a poor complaint system and there are benefitsassociated with a good one. The survey conducted by me revealed that handlingcustomer complaints well can be a critical part of a turnaround strategy. If acomplaint is handled well, it sustains and strengthens customer loyalty and thecompany's image as a leader. It also tells the customer that the company caresand can improve because of their contact.

It is for the above reasons that we need to identify the recurrent complaints madeby the customers of Reliance life Insurance Company. These are as follows:-

GRIEVANCES WITH RESPECT TO ITS FINANCIAL ADVISORSAND STAFF

The customer is often aggrieved that he does not receive truthful advicefrom the agents. They felt that some of them were trying to push theproduct that yields them the highest commission rate.

Financial advisors were not able to provide a ready comparison of thecompetitors products and how his product was superior that the others.

The customers expected to have continuing commitment of the agents toarrange post-sales service but this was not done.

35


36/47

GRIEVANCES WITH RESPECT TO CLAIMS SETTLEMENT

Company refusing claims for unconnected breaches

The company does not explain in writing why they are rejecting a claim

Wrongful repudiation/ rejection of claims is one more area giving rise to

grievances. These include grievances pertaining to partial offers forsettlement.

Consumers are frustrated with the length of time and lack of communicationinvolved in the claims process. The claimants expressed dissatisfaction withthe amount of time it took to settle their claim.

Certain other claimants expressed dissatisfaction with their claimrepresentative's ability to keep them informed of their claim status.

36


37/47

RESULTS AND DISCUSSIONS

Following are the findings of the survey: -

1.

Which policy you have purchase?

5%

75%

10%

10%

Retirement Plan

Saving &Investment PlanChild Plan

Protection Plan

Fig. 1

From the graph given above in figure 1 it is clear, what kind of coverage dopeople take for themselves and in what percentage, so to help the customerschoose among various types of coverages offered, companies train salesrepresentatives in technical points of their insurance products, besides this thereare also brokers and financial advisors who help people to decide- what kind ofinsurance policies to purchase so that they get the best coverages.

37


38/47

2.

For How many years you have

purchased the policy ?

20%

60%

10%

10%

3-5 years

5-10 years

10-15 years

15 & above

Fig. 2

From the graph given above in fig. 2 it is clear, people mostly purchase the policyfor medium to long period of time. Nearly 20% people prefer policy for the period

of 3-5 years as a short term investment. 10% people go for 10-15 years policyand the rest 10% prefer long time investment so they opt the policy for the periodabove 15 years. As long as you keep policies, you will get more benefit.

38


39/47

3.

What made you to choose Reliance

Life Insurance ?

80%

7%

5%5% 3% Brand Image

Quick settlement of

claims

Efficient Services

Low Cost

Any Others

Fig. 3

Further, the survey revealed the reasons as to why the people preferred RelianceLife Insurance over the other life insurance companies. The reasons for this arerepresented in the pie chart given above in figure 3.

As reliance is the brand name in India, the company has good reputation in themarket, almost everyone heard about the reliance and their companies. Brandmanagement is also required to increase the product perceived value to the

customer. Thats the reason behind 80% of the people choosing reliance. As 7%people think reliance is good for quick settlement of claims. 5% people choosereliance because of efficient services. Reliance life insurance generally offers lowpremium policies, which suits the pocket of the customers and the rest 3% optreliance due to other reasons like Policies of this company are easily available tothe people having credit cards, performance of the company, etc.

39


40/47

4.

Who Recommend you to buy the policy

?

20%

70%

5% 5%

Retail

Financial Advisor

Tele Caller

Branch Walk-ins

Fig. 4

From the graph given above in figure 4 we can see that out of all the customerswho were interviewed 70% had purchased the policy from the financal advisor ofthe company. . They are the point of contact with the end customer and share thecompanys vision of bringing innovative insurance solutions to customers'doorsteps. 20% people prefer to buy from retail. The retail channel is furthercategorized as follows:-

Direct: Under the direct channel is the companys sales force i.e. the sales

executives and sales officers who form the companys backbone and are its mostpowerful assets.

Indirect: It includes the following:

Brokers: Through this channel, the company plans to reach out to a widercustomer base to increase its market share. Customers look forward to insurancebrokers for expert advice on customized insurance solutions. 5% of thecustomers stated that they use the telesales channel to purchase their policies.Telesales channel is an effective channel used by Reliance life insurance to sell,cross sell and up-sell various products and services to customers. It is specially

suited to shorten sales cycle, increase revenues and profitability. 5% of thecustomers approached the companys branch offices itself to purchase theinsurance products. Such customers are known as branch walk-ins.

40


41/47

5.

Are You Satisfied by the services

provided by Reliance Life Insurance?

93%

7%

Yes

No

Fig. 5

93% customers of reliance are satisfied with the services provided by RelianceLife Insurance and the rest 7% are not satisfied.

6.

What are your reasons for satisfaction?

80%

10%

8% 2%

Inform the customer on a

regular basis

Efficient Services

Respond to complaints

quickly

Any Other

Fig. 6

Customers of today are better educated, better informed, more discriminating,more sophisticated and are more individualistic. What they value in an insurancetransaction has dramatically changed. 80% customers are satisfied because they

41


42/47

are getting regular information from company regarding new policies,performance of company, payment of premium and their due date, etc. 10%customer are satisfied due to efficient services.8% customers are satisfiedbecause they are getting quick response to their complaints and the rest 2% aresatisfied due to reliability of insurance products, transparency and fairness of the

provider.

7.

15%

75%

5% 5%

What are your reasons fordissatisfaction?

Policy Document not received ontime

Dissatisfied by the financ ialadvisor services

Delay in c laims settlement

Any Others

Fig. 7

During the survey conducted in the form of an interviewing session with thecustomers, an effort was made to check the percentage of people dissatisfied bythe services provided by Reliance, the dissatisfaction level was also high in thesame. Although various reasons have been stated by them, the main reason fordissatisfaction of 75% customers is inefficient services of financial advisor. Thecustomer is often aggrieved that he does not receive truthful advice from thefinancial advisor . They felt that some of them were trying to push the product thatyield them the highest commission rate. Financial advisor were not able toprovide a ready comparison of the competitiors products. 15% customer saidthey are not getting policy document on time. 5% are dissatisfied due to delay inclaims settlement by the company and the remaining 5% are dissatisfiedbecause of other reason like Wrongful repudiation of claims,misled thecustomers, etc.

42


43/47

8.

Which of the following mode do you

use to register your complaint?

75%

15%

5% 5%

Call Center

Email Support

Branch Walk-ins

Letters & Faxes

Fig. 8The survey revealed that 75% of the customers interviewed used the call centerto register their complaints in the first instance as it is a time saving mode andeffective also. Call center numbers are generally toll-free. 15% customer used thee-mail facilities as it is easy to contact or register a complaint. They generally getreply through e-mail,so its convenient for them. Only a small percentage of thecustomers used letters & faxes and branch walk-ins as a mode of registeringtheir complaints and grievances.

43


44/47

9.

Were you satisfied by the servicesprovided by the mode you chose toregister your complaint?

91%

9%

Yes

No

Fig. 9

91% customers are satisfied by the services provided by the mode they chose toregister their complaints while 9% are dissatisfied.

44


45/47

10.

If Reliance Life Insurance will come

with new product, will you purchase it?

90%

10%

YES

NO

Fig. 10

90% customers are ready to purchase product/policy of reliance, as they must besatisfied to be associated with reliance. They must be happy with the services ofreliance. 10% are not ready to purchase new product they must be having badexperience with their existing reliance product.

11.

92%

8%

Would you recommend ourcompany to your

friends/colleagues?

Yes

No

Fig. 11

92% customers are ready to recommend reliance life insurance company to theirfriends/colleagues while 8% are not going to recommend.

45


46/47

Recommendations & Conclusion

In view of the above the following recommendations are made to Reliance LifeInsurance in order to enhance the level of satisfaction of its customers.

RECOMMENDATIONS WITH RESPECT TO CLAIMS

When a claim is made the company can send the customer a guide toexplain the claim process and the likely time scale they can expect theirclaim to be dealt within.

It is further recommended that the company retrain its claims handling staffto focus on customer service and in particular the sensitivenesssurrounding a claim from a protection policy.

The company must also seek regular feedback from those who havemade a claim or complaint to see if any improvements could be made.

RECOMMENDATIONS WITH RESPECT TO TRAINING OF THECOMPANYS STAFF

The company must take a critical view of how conflicts of interest mayaffect the fair treatment of customers and to respond accordingly. Forexample, senior managers should engage in conflicts identification andmanagement and review controls to mitigate conflicts on a regular basis.

The company must ensure that all the staff are aware of their obligations inmaintaining high levels of customer satisfaction and the staff needs to begiven appropriate training and support for this.

It must see that customer satisfaction is not a consideration for the salesstaff only but also for those dealing with claims, complaints and ongoingcustomer support.

There is a need to monitor the quality of the sales staff.

RECOMMENDATIONS WITH RESPECT TO RESOLUTION OFCONSUMERS COMPLAINTS

Make it easy for your customers to complain and your customers will makeit easy for you to improve.

Respond to complaints quickly and courteously with common sense and

you will improve customer loyalty. Resolve complaints on the first contact and save money by eliminating

unnecessary additional contacts that escalate costs and build customerconfidence.

Technology utilization is critical in complaint handling systems.

46


47/47

Make it easy for customers to complain through the extensive use ofcentralized customer help-lines, complaint/comment cards at the point ofservice, and easy-to-use customer appeal processes.

Thus, the key issues that the company must concentrate on are asfollows:

Speedy documentation and processes at the time of issue of policies. Easy and simple procedures for medical underwriting.

Quick response to any changes related to the customers policy namely,change of name, contact details, assignment of policy or term reduction.

Prompt redressal of customer grievances.

Offer to upgrade the policy and provide flexibility to the customers.

Provide updates on the companys performance and inform the customeron a regular basis on the status of his account.

CONCLUSION:

The study reveals that 93% customers of the Reliance Life Insurance Companyhave enjoyed their fruitful satisfaction with the company. Company is enjoyinggreat position & reputation in the market. As company is performing very well, butstill it has to improve in some areas to ensure more satisfaction of customers.

Reliance Final Touch

Documents

Transcript of Reliance Final Touch