SIP PROJECT REPORT

ON

RELIANCE LIFE INSURANCE, SAGAR

SUBMITTED IN18YYYY8YYYY½ PARTIAL

FULFILLMENT FOR THE AWARD OF THE
DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
UNDER THE GUIDANCE OF
DR. ASHFAQ SIDDIQUE
SUBMITTED BY:
MAHENDRA PATEL
MBA IV SEM.
ROLL NO.: 22141062
ENOLL 181001A0584

INFINITY MANAGEMENT AND ENGINEERING

COLLEGE SAGAR
 STUDENT DECLARATION

This is to certify that the project titled ‘RELIANCE LIFE

INSURANCE’ under the guidance of ‘DR. ASHFAQ
SIDDIQUE’ has been completed and submitted in partial
fulfillment of the requirement for the award of degree of Master of
Business Administration at Infinity Management and Engineering
College Sagar. This is an original piece of work & I have not
submitted it earlier elsewhere.

MAHENDRA PATEL
 GUIDE CERTIFICATE

This is to certify that the project titled “RELIANCE LIFE

INSURANCE” is an academic work done by “MAHENDRA

PATEL” submitted in the partial fulfillment of the requirement for the

award of the degree of Master Of Business Administration from

Infinity Management and Engineering College Sagar. under my

guidance & direction. To the best of my knowledge and belief the data

& information presented by him/her in the project has not been

submitted earlier.

MAHENDRA PATEL
 ACKNOWLEDGEMENT

I am highly obliged to DR. ASHFAQ SIDDIQUE (project guide) for

her constant and excellent guidance and also her valuable support
without whom this project report could not be successfully completed. I
am also thankful to my friends, my parents, brother sister for helping
me in the completion of this project report.
 Near Bus Stand Ran Basera Hotel 2nd Floor, Sagar (M.P.) 470 001

Ref No. Date

TO WHOM SO EVER IT MAY CONCERN

This is to Certify that MR. MAHENDRA PATEL , Pursuing

MBA IV Sem. From INFINITY MANAGMENET AND
ENGINEERING COLLEGE AFFILATED MAHARAJA
CHHATRASAL BUNDELKHAND UNIVERSITY
CHHATAPUR. has undergone from SIP (Summer Internship
Programe) in our organization during the 45 days. Under the
guidance of MISS REENA DUBEY, Agency Manager in Reliance
Life Insurance Sagar (M.P.)

During his training period he is found very cooperative,

punctual and devoted to his work.

I Wish Very Bright future.

 CONTENTS

Preface
Acknowledgement
Declaration
Certificate of Summer Training
Certificate

• Executive Summary
• An Overview
• Historical Perspective
• Presnet Scenerio
• Introduction of the Comapny
• Reliance Life insurance, Sagar
• Major Player in the Insurance industry
• Reliance Polices
• Objective of the stury
• Research Methodology
• Limitation of the Research
• Data Analysis and Interpretation
• Conclusion
• Suggestions
• questionnaire
• Bibliography
 EXECUTIVE SUMMARY
In today’s corporate and competitive world, I find that insurance sector has the
maximum growth and potential as compared to the other sectors. Insurance has the
maximum growth rate of 70 80% while as FMCG sector has maximum 12 15% of
growth rate. This growth potential attracts me to enter in this sector and
RELIANCE LIFE INSURANCE has given me the opportunity to work and get
experience in highly competitive and enhancing sector.

• The success story of good market share of different market organizations

depends upon the availability of the product and services near to the
customer, which can be distributed through a distribution channel. In
Insurance sector, distribution channel includes only agents or agency
holders of the company. If a company like RELIANCE LIFE
INSURANCE, TATA AIG, MAX etc have adequate agents in the market
they can capture big market as compared to the other companies.

Agents are the only way for a company of Insurance sector through which policies
and benefits of the company can be explained to the customer.
 AN OVERVIEW

With the largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It’s a business growing at the rate of
15 20 per cent annually and presently is of the order of Rs 1560.41 billion (for the
financial year 2006 – 2007). Together with banking services, it adds about 7% to
the country’s Gross Domestic Product (GDP). The gross premium collection is
nearly 2% of GDP and funds available with LIC for investments are 8% of the
GDP.

Even so nearly 65% of the Indian population is without life insurance cover while
health insurance and non life insurance continues to be below international
standards. A large part of our population is also subject to weak social security and
pension systems with hardly any old age income security

A well developed and evolved insurance sector is needed for economic

development as it provides long term funds for infrastructure development and
strengthens the risk taking ability of individuals. It is estimated that over the next
ten years India would require investments of the order of one trillion US dollars.
 HISTORICAL PERSPECTIVE

The history of life insurance in India dates back to 1818 when it was conceived as
a means to provide for English Widows. Interestingly in those days a higher
premium was charged for Indian lives than the non Indian lives, as Indian lives
were considered more risky to cover. The Bombay Mutual Life Insurance Society
started its business in 1870. It was the first company to charge the same premium
for both Indian and non Indian lives.

The Oriental Assurance Company was established in 1880. The General insurance
business in India, on the other hand, can trace its roots to Triton Insurance
Company Limited, the first general insurance company established in the year
1850 in Calcutta by the British. Till the end of the nineteenth century insurance
business was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during
the 1920's and 1930's sullied insurance business in India. By 1938 there were 176
insurance companies.

The first comprehensive legislation was introduced with the Insurance Act of 1938
that provided strict State Control over the insurance business. The insurance
business grew at a faster pace after independence. Indian companies strengthened
their hold on this business but despite the growth that was witnessed, insurance
remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers
and provident societies under one nationalized monopoly corporation and Life
Insurance Corporation (LIC) was born. Nationalization was justified on the
grounds that it would create the much needed funds for rapid industrialization.
This was in conformity with the Government's chosen path of State led planning
and development.
The non life insurance business continued to thrive with the private sector till
1972. Their operations were restricted to organized trade and industry in large
cities. The general insurance industry was nationalized in 1972. With this, nearly
107 insurers were amalgamated and grouped into four companies National
Insurance Company, New India Assurance Company, Oriental Insurance Company
and United India Insurance Company. These were subsidiaries of the General
Insurance Company (GIC).

KEY MILESTONES

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

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

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

1956: 245 Indian and foreign insurers along with provident societies were taken
over by the central government and nationalized. LIC was formed by an Act of
Parliament LIC Act 1956 with a capital contribution of Rs. 5 crore from the
Government of India.
 PRESENT SCENARIO LIFE INSURANCE INDUSTRY IN INDIA

The life insurance industry in India grew by an impressive 47.38%, with premium
income at Rs. 1560.41 billion during the fiscal year 2006 2007. Though the total
volume of LIC's business increased in the last fiscal year (2006 2007) compared to
the previous one, its market share came down from 85.75% to 81.91%.

The 17 private insurers increased their market share from about 15% to about 19%
in a year's time. The figures for the first two months of the fiscal year 2007 08 also
speak of the growing share of the private insurers. The share of LIC for this period
has further come down to 75 percent, while the private players have grabbed over
24 percent.

With the opening up of the insurance industry in India many foreign players have
entered the market. The restriction on these companies is that they are not allowed
to have more than a 26% stake in a company’s ownership.

Since the opening up of the insurance sector in 1999, foreign investments of Rs.
8.7 billion have poured into the Indian market and 19 private life insurance
companies have been granted licenses.

Innovative products, smart marketing, and aggressive distribution have enabled

fledgling private insurance companies to sign up Indian customers faster than
anyone expected. Indians, who had always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new
innovative products on offer. Some of these products include investment plans
with insurance and good returns (unit linked plans), multi – purpose insurance
plans, pension plans, child plans and money back plans. (www.wikipedia.com)
 INTRODUCTION TO THE COMPANY

COMPANY PROFILE OF RELIANCE LIFE INSURANCE

FOUNDER

Few men in history have made as dramatic a contribution to their country’s

economic fortunes as did the founder of Reliance, Sh. 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 India’s capital markets, the

champion of shareholder interest.

• But the role Dhirubhai cherished most was perhaps that of India’s greatest

wealth creator. In one lifetime, he built, starting from the proverbial scratch,

India’s largest private sector enterprise.

• When Dhirubhai embarked on his first business venture, he had a seed capital

of barely US$ 300 (around Rs 14,000). Over the next three and a half decades,

he converted this fledgling enterprise into a Rs 60,000 crore colossus—an

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 India’s 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 Dhirubhai’s extraordinary vision and leadership, Reliance scripted one

of the greatest growth stories in corporate history anywhere in the world, and

went on to become India’s 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

world’s largest shareholder families.

 ABOUT RELIANCE

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the

Reliance Anil Dhirubhai Ambani 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 Capital Limited (RCL) is a Non Banking Financial Company (NBFC)

registered with the Reserve Bank of India under section 45 IA of the Reserve

Bank of India Act, 1934.

• 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 step forward for Reliance Capital Limited to

offer need based Life Insurance solutions to individuals and Corporates.

CORPORATE OBJECTIVE

At Reliance Life Insurance, we strongly believe that as life is different at every

stage, life insurance must offer flexibility and choice to go with that stage. We are

fully prepared and committed to guide you on insurance products and services

through our well trained advisors, backed by competent marketing and customer

services, in the best possible way.

• It is our aim to become one of the top private life insurance companies in

India and to become a cornerstone of RLI integrated financial services

business in India.
 CORPORATE MISSION

• “To set the standard in helping our customers manage their financial
future”.

BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY

RELIANCE LIFE INSURANCE
INSURANCE PLANS AVAILABLE

1. Products (Individual Plans)

Savings (Endowment)

2. Reliance Endowment Plan

(formerly Divya Shree)

3. Reliance Special Endowment Plan

(formerly Subha Shree)

4. Reliance Cash Flow Plan

(formerly Dhana Shree)

5. Reliance Child Plan

(formerly Yuva Shree)

6. Reliance Whole Life Plan

(formerly Nithya Shree)

Pensions

7. Reliance Golden Years Plan

(formerly Bhagya Shree)

Investments

8. Reliance Market Return Plan

(formerly Kanaka Shree)

9. Risk / Protection
 10. Reliance Term Plan
(formerly Raksha Shree)

Products (Group / Corporate Plans)

11. Risk (Protection)

Reliance Group Term Assurance Policy

(formerly Group Term Assurance Policy)

Reliance EDLI Scheme

(formerly EDLI Scheme)

12. Pensions
a. Reliance Group Gratuity Policy
(formerly Group Gratuity Policy)
b. Reliance Group Superannuation Policy
(formerly Group Superannuation Policy)
13. Reliance Money Guarantee Plan
 RELIANCE LIFE INSURANCE , SAGAR

INTRODUCTION

Branch Name
Reliance Life Insurance Sagar
:

State Name : MADHYA PRADESH

District Name
SAGAR
:

Branch : Ran Basera Hotel Near Bus Stand Sagar (M.P.)

City : Sagar

Address : Ran Basera Hotel Near Bus Stand Sagar (M.P.)

Managar Vikrant Choudhary

 MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

• Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to

spread the message of life insurance in the country and mobilise people’s savings

for nation building activities. LIC with its central office in Mumbai and seven

zonal offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and

Bhopal, operates through 100 divisional offices in important cities and 2,048

branch offices. LIC has 5.59 lakh active agents spread over the country.

The Corporation also transacts business abroad and has offices in Fiji, Mauritius

and United Kingdom. LIC is associated with joint ventures abroad in the field of

insurance, namely, Ken India Assurance Company Limited, Nairobi; United

Oriental Assurance Company Limited, Kuala Lumpur; and Life Insurance

Corporation (International), E.C. Bahrain. It has also entered into an agreement

with the Sun Life (UK) for marketing unit linked life insurance and pension

policies in U.K.

In 1995 96, LIC had a total income from premium and investments of $ 5 Billion

while GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's

income grew at a healthy average of 10 per cent as against the industry's 6.7 per

cent growth in the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the

poverty line, with 50 per cent subsidy in the premium rates. LIC's claims

settlement ratio at 95 per cent and GIC's at 74 per cent are higher than that of

global average of 40 per cent. Compounded annual growth rate for Life insurance

business has been 19.22 per cent per annum

• General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government

company known as General Insurance Corporation of India (GIC) was formed by

the Central Government in November 1972. With effect from 1 January 1973 the

erstwhile 107 Indian and foreign insurers which were operating in the country

prior to nationalization, were grouped into four operating companies, namely, (i)

National Insurance Company Limited; (ii) New India Assurance Company

Limited; (iii) Oriental Insurance Company Limited; and (iv) United India

Insurance Company Limited. (However, with effect from Dec'2000, these

subsidiaries have been de linked from the parent company and made as

independent insurance companies). All the above four subsidiaries of GIC operate

all over the country competing with one another and underwriting various classes

of general insurance business except for aviation insurance of national airlines and

crop insurance which is handled by the GIC.

Besides the domestic market, the industry is presently operating in 17 countries

directly through branches or agencies and in 14 countries through subsidiary and

associate companies.
IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE

BEEN PERMITTED TO ENTER INTO INSURANCE BUSINESS:

The introduction of private players in the industry has added to the colors in the

dull industry. The initiatives taken by the private players are very competitive and

have given immense competition to the on time monopoly of the market LIC.

Since the advent of the private players in the market the industry has seen new and

innovative steps taken by the players in this sector. The new players have

improved the service quality of the insurance. As a result LIC down the years have

seen the declining phase in its career. The market share was distributed among the

private players. Though LIC still holds the 75% of the insurance sector but the

upcoming natures of these private players are enough to give more competition to

LIC in the near future. LIC market share has decreased from 95% (2002 03) to 82

%( 2004 05).

1. HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life

insurance companies, which offers a range of individual and group insurance

solutions. It is a joint venture between Housing Development Finance Corporation

Limited (HDFC Ltd.), India’s leading housing finance institution and The Standard

Life Assurance Company, a leading provider of financial services from the United

Kingdom. Their cumulative premium income, including the first year premiums

and renewal premiums is Rs. 672.3 for the financial year, Apr Nov 2005. They

have managed to cover over 11,00,000 individuals out of which over 3,40,000

lives have been covered through our group business tie ups.
2. Max Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings

together two large forces Max India Limited, a multi business corporate, together

with New York Life International, a global expert in life insurance. With their

various Products and Riders, there are more than 400 product combinations to

choose from. They have a national presence with a network of 57 offices in 37

cities across India.

3. ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse and Prudential plc, a leading international financial

services group headquartered in the United Kingdom. ICICI Prudential was

amongst the first private sector insurance companies to begin operations in

December 2000 after receiving approval from Insurance Regulatory Development

Authority (IRDA). The company has a network of about 56,000 advisors; as well

as 7 banc assurance and 150 corporate agent tie ups.

4. Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak

Mahindra Bank Ltd. (KMBL), and Old Mutual plc.

5.Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group

and Sun Life financial Services of Canada.

Tata AIG Life Insurance Company Ltd.


SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Private Limited

Allianz Bajaj Life Insurance Company Ltd.

Metlife India Insurance Company Pvt. Ltd.

AMP SANMAR Assurance Company Ltd.

Dabur CGU Life Insurance Company Pvt. Ltd.

1. Royal Sundaram Alliance Insurance Company

The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram

Finance Limited started its operations from March 2001. The company is Head

Quartered at Chennai, and has two Regional Offices, one at Mumbai and another

one at New Delhi.

2. Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj

Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise,

stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001

to conduct General Insurance business (including Health Insurance business) in

India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj

Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany.

3. ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited is a joint venture between

ICICI Bank Limited and the US based $ 26 billion Fairfax Financial Holdings

Limited. ICICI Bank is India's second largest bank, while Fairfax Financial

Holdings is a diversified financial corporate engaged in general insurance,

reinsurance, insurance claims management and investment management.

Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is

one of Canada's oldest property and casualty insurers. ICICI Lombard General

Insurance Company received regulatory approvals to commence general insurance

business in August 2001.

4. Cholamandalam General Insurance Company Ltd.

Cholamandalam MS General Insurance Company Limited (Chola MS) is a joint

venture of the Murugappa Group & Mitsui Sumitomo.

Chola MS commenced operations in October 2002 and has issued more than 1.4

lakh policies in its first calendar year of operations. The company has a pan Indian

presence with offices in Chennai, Hyderabad, Bangalore, Kochi, Coimbatore,

Mumbai, Pune, Indore, Ahmedabad, Delhi, Chandigarh, Kolkata and Vizag.

5. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture company, formed

from the Tata Group and American International Group, Inc. (AIG). Tata AIG

combines the strength and integrity of the Tata Group with AIG's international

expertise and financial strength. The Tata Group holds 74 per cent stake in the two

insurance ventures while AIG holds the balance 26 per cent stake.
Tata AIG General Insurance Company, which started its operations in India on

January 22, 2001, offers the complete range of insurance for automobile, home,

personal accident, travel, energy, marine, property and casualty, as well as several

specialized financial lines.

2.3 Reliance Policies

(1) Reliance Children Plans

What could make you happier than knowing, that your child's future is secure?
Nothing, we suppose. Which is why, Reliance Life Insurance brings to you
Reliance Secure Child Plan, a unit linked Insurance Plan, that gives you the
freedom to enjoy today with your child, because his tomorrow is in safe hands.

• Do you see your child becoming a trailblazer?

• Will they create the ultimate symphony or give sports a new dimension?

Our children may just be the ones to end the arms race and wipe out poverty from
the face of the Earth. But for them to be able to aim for the skies, YOU NEED TO
ACT NOW!

Introducing Reliance Secure Child Plan a unique life insurance cum savings plan.
secure the future of your child.

Key Features
Insurance cover on the life of child
Your child is completely protected we will continue to pay the
premiums even if you are not alive
Life time income to child in the event of disability
Return Shield option to protect your investment returns
Liquidity in the form of partial withdrawals
Capital guarantee available on maturity and on death of the child for
basic and top up premiums
Option to package with Accidental Death and Total and Permanent
Disablement Rider, Critical Conditions Rider and Term Life Insurance
Benefit Rider.
(2)Reliance Health + Wealth Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT

PORTFOLIO IS BORNE BY THE POLICYHOLDER.

There are times when late working hours take precedence over your health check
ups. And there are times when a visit to the doctor seems more important than
dividends on your shares. In the rat race to make money, we often forget to take
care of ourselves.

We understand this predicament. Here is a plan that will ensure that your wealth
keeps increasing constantly and yet your health does not take a backseat. The
Reliance Wealth Health Plan. A plan that gives you the benefits of wealth bhi.
health bhi.

Life changes. And as it does, so do your priorities. After all, the circumstances of
your life can determine the type of health coverage you need.

India has made rapid strides in the health sector. Since Independence, life
expectancy has gone up markedly and survival rates have also increased, still
critical health issues remain. Infectious diseases continue to claim a large number
of lives.

Reliance Wealth + Health Plan, a health insurance plan underwritten by Reliance

Life Insurance Company Limited, is designed to work in conjunction with
contributions towards savings.

Key Feature
A Unit Linked plan with Unique Savings Component
Twin benefit of market linked return and health protection
Choose from two different plan options
Flexibility to take care of your family’s health
Flexibility to switch between funds / plan options
Option to pay Top ups
(3) Reliance Pension Policy

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT

PORTFOLIO IS BORNE BY THE POLICYHOLDER.

Retirement means different things to different people, while some want to relax
and take a trip around the world, some want to start up a venture of their own, and
pursue a dream harnessed for years. The power to make your autumn years special
lies only with you. The Reliance Super Golden Years Plan gives you the power
and the right kind of solution A retirement plan that allows you to save
systematically and generate the much needed corpus to make your olden years
look golden.
Key Features – Reliance Pension Policy :
Invest systematically and secure your golden years
A flexible unit linked pension product that is different from traditional
life insurance products with Vesting Age between 45 & 70 years
Eight different investment funds to choose from
Flexibility to switch between funds
Option to pay Regular, Single as well as Top up premiums
Flexibility to advance / extend your Vesting Age
Tax free commutation up to one third of Fund Value at Vesting Age

(4) Reliance Whole life insurance policy

You’ve always loved your family. As a loving person you want to be rest assured
that they will be happy, even if something were to happen to you. With Reliance
Whole Life Plan you can be sure that your family will receive that timely financial
support they need.

Go ahead, live your today to the fullest, without a worry about tomorrow.

Key Features
Insurance protection till age 85
Choice of extending your insurance coverage till age 99
Convenient Premium Payment Term
Wealth creation through bonus additions
More value for your money by way of High Sum Assured Rebate Get
Sum Assured plus Bonuses in case of your unfortunate death
Option to add two Riders – Critical Illness and Accidental Death
Benefit and Total and Permanent Disablement Rider
Policy Loan available after three full years premium payment
 OBJECTIVES OF STUDY

The main of the present study of is accomplish the following objective.

Proper understanding and analysis of life insurance industry.

To know about brand awareness of Kotak Life Insurance and
customer’s preference about Kotak Life Insurance.

According the market survey come know about how much potential
of insurance market in our city.

And base on analysis of the result thus obtained make a report on
that research.

Training aims at recruiting maximum number of Life Advisors and
to Sell the maximum policies for the company and bring the business
for the company which ever is going at the particular point of time.

As the Kotak Life Insurance well reputed company in India it’s great
chance for me to observed different products launch by other
competitor companies like ICICI prudential, Bajaj alliance ,LIC,
Max New York life etc. In all, it is to understand the overall working
of the Life insurance sector.

The objective behind the project is as follows:

To find the right candidate.

To about their family background, occupation, social relation,
Qualification, Age.
 RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

TITLE:

To determine customer buying behavior with a focus on market segmentation for

Reliance Life Insurance.

• TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with studying the

buying pattern in the insurance industry with a special focus on Reliance life

Insurance. The various segments of the markets divided in terms of Insurance

Needs, Age groups , Satisfaction levels etc will also studied.

OBJECTIVE

Objective One

• To determine reasons behind opting for an insurance.

• To provide the company with information of customer's Insurance policy if

they have any and reasons for opting for that particular policies.

 To know the most preferred policy.

Objective Two

• To determine customers perception towards private insurance companies and

their expectation form private insurance companies.

• To determine the feedback on services provided by any other insurance agent.

• To study the types of benefits provided by insurance services.

• To determine the use of Internet for valuable information and decision making

process.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large

number of new players have entered the market and are vying to gain market share

in this rapidly improving market. The study deals with Reliance in focus and the

various segments that it caters to. The study then goes on to evaluate and analyse

the findings so as to present a clear picture of trends in the Insurance sector.

 LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Delhi and does not

necessarily shows a pattern applicable to all of Country.

2. Some respondents were reluctant to divulge personal information

which can affect the validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one

segment can change very quickly. The environmental changes are

vital to be considered in order to assimilate the findings.

 DATA ANALYSIS & INTERPRETATION

DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE

COMPANIES
NO.OF
COMPANY’S NAME SHARE (%)
RESPONDENT
L.I.C. 78 78
RELIANCE LIFE
3 3
INSURANCE
ICICI PRUDENTIAL 10 10

SBI LIFE 7 7
HDFC 2 2
TOTAL 100 100

7 2

10
LIC
3 REL
ICICI
SBI
HDFC

78

INTERPRETATION

 78% of the people contacted prefer LIC policy to any other and therefore it

is ranked no.1 by that percent of respondents.

 DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY

RESPONDENTS
 NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Cover Future Uncertainty 55 55

Tax Deductions 20 20
Future Investment 25 25
TOTAL 100 100

25%
Cover Future
Uncertainty
Tax Deductions
55%
Future Investment
20%

INTERPRETATION

 55% of the respondents believe that covering future uncertainty is the

biggest benefit of an insurance policy.

 Whereas, 20% and 25% of them believe that the other benefits are Tax

deduction and future investments respectively.


DATA PROVIDES FEATURES OF INSURANCE POLICY THAT
ATTRACTED RESPONDENTS

FEATURE NO.OF SHARE (%)

RESPONDENTS
Money Back Guarantee 15 15
Larger Risk Coverance 37 37
Easy Access to Agents 7 7
Low Premium 30 30
Company’s Reputation 11 11
TOTAL 100 100

FEATURES OF INSURANCE POLICY

MONEY BACK
GUAARENTEE
11% 15% LARGER RISK
COVERANCE
EASY ACCESS TO
AGENTS
30%
LOW PREMIUM
37%
7%
REPUTATION OF
COMPANY

INTERPRETATION

 Majority of the respondent (37%) found Larger risk coverance as the

most attracted feature of the all.


DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE
RESPONDENTS

POLICY TYPE NO. OF SHARE (%)

RESPONDENTS

LIFE POLICY 75 75

NON LIFE POLICY 25 25

BOTH 45 45

NATURE OF POLICY

45

LIFE
POLICY
NON LIFE
75 POLICY
BOTH

25

INTERPRETATION

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

% is calculated out of 280 positive response)


DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

A saving tool 81 81%

A tax saving device 74 74%

A tool to protect your family 100 100%

81
100

SAVING
TOOL

TAX
SAVING
TOOL
74 FAMILY
PROTECTI

INTERPRETATION

• 81% of the respondents have perception of Insurance being a saving tool.

• And 74% of the respondents have perception of Insurance being a tax saving

device.

• But 100% of the respondents are with the view that Insurance is a tool to

protect your family.


DATA SHOWS PEOPLES HAVING INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 70 70%

No 30 30%

30%

70%

Yes
No

Total 100 100%

INTERPRETATION

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

having Insurance policy.

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

or their policy is already matured.

 CONCLUSION

Our exhaustive research in the field of Life Insurance threw up some interesting

trends which can be seen in the above analysis. A general impression that we

gathered during Data collection was the immense awareness and knowledge

among people about various companies and their insurance products. People are

beginning to look beyond LIC for their insurance needs and are willing to trust

private players with their hard earned money.

People in general have been impression by the marketing and advertising

campaigns of insurance companies. A high penetration of print , radio and

Television ad campaigns over the years is beginning to have it’s impact now.

The general satisfaction levels among public with regards to policy and agents still

requires improvement. But therein lays the opportunity for a relative new comer

like ING. LIC has never been known for prompt service or customer oriented

methods and Reliance can build on these factors.

 SUGGESTION

• According the survey only 42% people are insured in Alwar so

reaming other part is potential for insurance sector.
• Among that 42% people who having insurance, they have insurance
40% for self 28%for spouse 21% for children and 18% for their
parents and 11% for all family member, also its very help full for
insurance sector so they should take necessary step for capture this
potential.

• Only 42% people having insurance in Alwar in that 42% there are 82
% people are under insured and other 18% people are fully insured
according to their income so that is also plus point for insurance
sector to capture the market
 QUESTIONNAIRE

1. ARE YOU EMPLOYED?

YES NO

If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?

YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON LIFE BOTH

4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST?

(RANK THEM)

a) LIC

b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) RELIANCE LIFE INSURANCE

f) TATA AIG LIFE

g) ANY OTHER ________( Specify)

5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY?

(Please Tick)

a) <5Yrs b) 5 10 Yrs c) 10 15 Yrs d) Any Other______

(Specify)

6. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE

COVER?
(RANK THEM)

a) COVER FUTURE UNCERTAINITY

 b) TAX DEDUCTIONS

c) FUTURE INVESTMENT

d) ANY OTHER _________ (Specify)

7. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO

BUY IT?
(RANK THEM)

a) LOW PREMIUM

b) LARGER RISK COVERANCE

c) MONEY BACK GUARNTEE

d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS

f) ANY OTHER _________ (Specify)

8. YOUR MONTHLY INCOME?

a)<4k b)4k 8k c)8k 12k d)12k 16k e)Other_____(Specify)

9. DO YOU REALLY THINK INSURANCE POLICY COVER IN

TODAY’S SCENARIO IS NOT ESSENTIAL?

_____________________________________________________

10. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

c) A TOOL TO PROTECT FUTURE

17. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?

a) SAVING & RETURNS

b) SECURITY

c) TAX BENIFITS
18. WHAT’S THE RIGHT AGE TO BUY INSURANCE?

a) AFTER 25 Yrs

b) AFTER 35 Yrs

c) AFTER 45 Yrs

d) ANYTIME

19.HOW WOULD YOU RATE INDIAN INSURANCE COs?

a) RIGID PLANS

b) NON USER FRIENDLY

c) UNSATISFATORY SREVICES

d) NON AGGRESSIVE

e) SATISFACTORY

f) GOOD

g) VERY GOOD
 BIBLIOGRAPHY

1. BOOKS/MAGAZINES REFFERED:

STUDY GUIDE PRINCILES & PRACTICES OF LIFE /

GENERALINSURANCE, by AIMA.

Books published by INSURANCE INSTITUTE OF INDIA

LIFE INSURANCE, by Mc GILL

INSURANCEWATCH.

MONEYOUTLOOK.

2. WEBSITES REFFERED:

WWW.RELIANCELIFE.CO.IN

WWW.CIFAINSURANCE.COM

WWW.MONEYOUTLOOK.COM

WWW.INSURANCE.IND.COM

3. REPORTS/ARTICLES REFFERED:

REPORT: ISSUES & CHALLENGES FACING THE INSURANCE

INDUSTRY…. Dec2005.

BRIEF PROFILE OF LIC, INDIA…Dec 2006.

REPORT: COPING WITH COMPETITION…Jan2007

THANK YOU
 GETTING KNOWLEDGE ABOUT THE COMPANY AND
RECRUITMENT PROCESS

For any good start a proper knowledge of the subject is require same was
the case here, on the very first day we were given the Basic idea about the
company, following three day all the requisite knowledge were given which
a fresher requires, thereafter we were clubbed in a team of five and a
manager was assigned for each team our manager Mr. Sudhansu Shekhar
Sundaray (Business Manager) a very knowledgeable persona and one of the
senior member in SBI Life gave us the complete idea about how to
approach a prospective candidate

PROCESS OF CAREER GROWTH OF LIFE ADVISOR

As we were assigned to recruit life advisors, the very first thing that we
required was knowledge about benefits and opportunity because to motivate
a prospective candidate to become an Advisor, we need to convenience the
Advisor about the opportunity and carrier growth in SBI Life.

Benefit

• Commission
• Renewal Commission
• Bonus
• Quarterly gifts
• ACER club membership facility
• MDRT
• Promotion factor for an agent
• Domestic and International Conventions
Opportunity/

• Advisor require no capital investment

• They can chose there own working hour according to there
convenience.
• They are there own boss.
• Unlimited earning potential
• Represent a strong trusted brand.

CAREER GROWTH

Commission: The commission is generated whenever an agent sells a life

insurance to the customers. The percentage of the commission differs from
the type of products the agent sells. The various commissions that is
generated from different policy are as follows:

• Wealth Confident 24000 of 10% = 2400

• Future Confident 12000 of 22% = 2640

• Save Confident 7000 of 22% = 1540

• Aspire Life 18000 of 31% = 5580

• Spot Surakhya 12000 of 24% = 2880

• Bright Star 15000 of 30% = 4500

• Dream life Pension Plan 12000 of 7.5% = 900

Renewal Commission: Each and every time a policy gets renewed, the agent
gets the renewal commission. It is less than that of the commission and
differs from policy to policy which it sells to the customers.

Bonus: Some of the policy during its growth accumulates some bonus e.g.
some of the money back plans. This gives extra benefits to the customers in
terms of money and the agent in terms of bonus. An extra benefit which SBI
Life gives to its agent. No other life insurance company gives this benefit to
its advisors. Performance Linked Bonus(PLB)is counted quarterly. In the 1st
quarter i.e in Jan, Feb and Mar, if the commission is generated Rs.20,000
then the agent is able to get 30% of it that is 6000 as the PLB. Similarly the
agents get commission after each three month gap and an yearly bonus of
10% to 40% depending upon his performance.

Quarterly Gift: It is also an extra benefit that is given to the advisors based
on the performance. This is a motivational factor for the advisor because
these small things motivate the advisor to perform better and compete among
other fellow advisors. The gift varies from melamine dining set to
microwave, AC, laptop, mobile phone .etc.

Acer club membership: This is an extra facility which the company provides
to its agent. In this facility the Company provides four different membership
group i.e; BRONZE, SILVER, GOLD, PLATINUM On the basis of the
performance the Agent is assigned to this group starting from Bronze, the
day the Advisor manages to get in the elite group of ACER club he is
insured with a Life coverage of 1 to 3 lakhs. It also provides medical facility
to his wife in case of delivery to an amount of 30,000 to 45,000, 45,000 in
case of caesarian baby. Which gives a feeling of relief for the advisors
working in SBI Life Life Insurance?

MDRT: The MDRT is a member driven, international network of the

world's best insurance and investment services professionals /
advisors who deliver to their clients the highest standards of ethics,
knowledge, service and productivity. With membership from 479
companies in 78 countries, MDRT represents the top 1% of financial
professionals. AIG, Prudential, Mass Mutual, AXA, New York Life and
Northwestern Mutual are just a few of the different companies
represented. The MDRT promotes the 'Whole Person Concept' to
help members have a balanced, meaningful and successful life
through a focus on health, family, spirituality, education, financials,
community service and career.

Promotion factor for an agent: The Advisor of SBI Life has a chance
to be promoted to the post of AM (Agency Manager) called the
Avenues or can be a part of the Agency Associates.

The promotion factors are as follows:

• Number of policies The minimum number of policies an agent should

do to be promoted is36. This acts as one of the promotional factor for
an agent.

• Tenure Tenure is nothing but the time factor an agent is given to

achieve his/her target. The different time factors an agent given by
MNYL are 12months.

• Adjusted AFYP AFYP is otherwise known as Annual First Year

Premium. It is calculated on the single premium and fixed deposits at
the rate of 10%. The targeted adjusted AFYP for the promotion is 5
lakhs.

• Graduate Another important factor for the promotion is that the

agent’s minimum qualification should be graduation.
Domestic and International Conventions: A better performer is send to
different international conventions to share there ideas and skills with the
fellow member working in different countries. In the process the Agents gets
an opportunity to tour around the world on company expense.
OPPORTUNITY

Advisor requires no capital investment: For starting any business we

require a huge infrastructure but here in SBI Life the Advisors do not
require any capital investment other than RS. 825 IRDA examination fees,
which is very nominal and on return the Advisors get free phone calling
facility, Xerox facility etc.

They can choose there own working hour according to there convenience:
Advisor are free to work in there convenient hours because the advisors
working here comes from different profession like Doctor, Engineer,
Student, Medical Representative, contractor etc.

They are there own boss: There is no boss to give you target rather you are
your own boss and can work according to your pleasure and earning
requirement.

Unlimited earning potential: As the payment is made on commission basis

so there is no limit to earning. A person working hard can go to any limit
with reward and recognition in extra.
FINANCIAL MANAGEMENT OF MONEY INPUT

Once we had the knowledge of benefits and opportunities of advisor in SBI

Life life insurance we were given training as to how to go around in the
market for making sales call .so were given a lot of idea by our manager Mr.
Sudhansu Sekhar Sundaray .This idea includes market survey, door to door
survey, putting around canopy in different prime location of Bhubaneswar.

A market segment consists of a group of customers who share a similar set

of needs and wants. The market does not create the segments; the marketer’s
task is to identify the segments and decide which one to target. And for
insurance company we segmented market into following different groups.

• Geographical region: we segmented Bhubaneswar into five segment

i.e; East Bhubaneswar, West Bhubaneswar, North Bhubaneswar,
South and Central Bhubaneswar.

• Demographic age: we segmented the entire population of

Bhubaneswar into following three categories on the basis of
demographic age i.e; 18 to 20 age group, 25 to 40 age groups and
above 40.

• Family life cycle: we segmented the entire population of

Bhubaneswar into following three categories on the basis of family
life cycle i.e; Single, Married, Retired/VRS Optee.

• Gender: : we segmented the entire population of Bhubaneswar into

following two categories on the basis of two categories i.e; Male and
Female
 • Income: : we segmented the entire population of Bhubaneswar into
following three categories on the basis income below 2 lakhs,2 to 5
lakhs, more than 5 lakhs.

• Occupation: : we segmented the entire population of Bhubaneswar

into following six categories on the basis of there occupation like
Student, Government employee, Private Employee, House Wife, Self
employed and Unemployed.

• Education: : we segmented the entire population of Bhubaneswar

into following three categories on the basis of there education which
is 10th or 12th standard, Graduate, Post Graduate and above.

• Social class: : we segmented the entire population of Bhubaneswar

into following three categories on the basis of social status that is
Lower class, Middle class and Upper class.

Once the firm has identified its market segment it looks for Targeting and
for insurance company Targeting the most prospective candidate requires
segmenting of market into :

Needs based Segmentation: This is the most preferred and positive target
segment of insurance company because most positive result comes from this
segment targeting, like

• Extra income need

• Job need

• Carrier need

ROLE OF UNIT MANAGERS

In fulfilling his obligations under the Agreement, Advisor shall scrupulously
adhere to, follow and be bound by the Statutory provisions governing life
insurance Advisors and more particularly the code of conduct contained
therein, as in force from time to time. Without prejudice to the generalify of
the obligations of the Advisor to SBI Life Life Insurance, the Advisor shall:

a. Faithfully and diligently promote the business of SBI Life Life

Insurace;
b. Ensure that any representation made and information provided is
accurate;
c. Act diligently and carefully in providing any advice and ensure that
such advice is based on thorough analysis and take into account
available alternatives;
d. Ensure that any advice is reasonable in view of the customer’s
circumstances;
e. Not admit any liability or make any false, misleading, deceptive or
reckless statement to the customer in respect of life insurance
generally or any particular product of SBI Life Life Insurance;
f. Solicit proposals for insurance for SBI Life Life Insurance as SBI Life
Life Insurance may from time to time determine during the term of
this Agreement;
g. Service the needs and requirements of customer introduced by self or
assigned by SBI Life life Insurance;
h. Meet the validation specified by SBI Life Life insurance including
production and persistency;
i. Attend all training, meetings and seminars arranged or required by
SBI Life Life Insurance and perform such other duties as requested
by SBI Life Life Insurance;
j. Begin soliciting proposals for various insurance products at dates set
by SBI Life Life Insurance;
k. Be fully responsible and accountable for all its acts and omissions;
l. Obtain, maintain, renew and keep renewed the prescribed licences
issued by the IRDA and any other licence, approval or permission
required of it for fulfilling the obligations of an Advisor at all times
during the term of this agreemet;
m. At all times during te term of this Agreement, act within the scope of
such licences, approvals and permissions and any applicable
legislation ad in consonance with the corporate image and objectives
of SBI Life Life Insurance. The Advisor shall promptly notify SBI
Life Life Insurance of the loss of any suc licence, approval or
permission by it or by its certified persons;
n. Submit to SBI Life Life Insurance within the period of time specified
by SBI Life Life Insurance in writing from time to time, all proposals
and initial premiums, for products solicited by Adviosr and in any
case within the time specified by 64VB(4) of the Insurance Act, 1938
or any other statutory provisions applicable thereto. The Advisor shall
remit to SBI Life Life Insurance all monies collected in trust
immediately and without any deduction whatsoever.
o. Observe and be bound by the
• Statutory provisions, SBI Life Life Insurance Instructions
including Advisor manual, benefit illustration policy, cash
acceptance policy, market conduct guidelines, prevention of
money laundering policy, the compliance manual and the code
of conduct that may be issued by SBI Life Life Insurance, in
writing, from time to time relating to the conduct of the
business;
• Monitoring, supervision and performance standards of the
business and sales practices used in relation to SBI Life Life
Insurance products that may be issued by SBI Life Life
Insurance, in writing, from time to time;
p. Promptly deliver to SBI Life Life Insurance in good order and
condition when demanded all records, rate books, documents,
manuals, computers (hardware and software relating in any way to
the life insurance business of SBI Life Life Insurance and which were
received from SBI Life Life Insurance, including those that have been
specifically entrusted to the Advisor pursuant to this Agreement.
Advisor here by acknowledges that such good, tangible and
otherwise, and the exclusive property of SBI Life Life Insurance;
q. Maintain and observe at all times the strictest secrecy and
confidentiality, concerning the business of SBI Life Life Insurance or
of Policyholders or proposers of Life Insurance or persons or
companies from time to time dealing with SBI Life Life Insurance at
any time, either while the Agreement is in force or subsequent to its
termination;
r. Bear all expenses incurred in the performance of duties under this
Agreement unless otherwise specifically agreed to in writing by SBI
Life Life Insurance;
s. Promptly disclose to SBI Life Life Insurance every fact and
circumstance within his knowledge relevant to the acceptance of the
risk of business by SBI Life Life Insurance and shall promptly and
accurately relate to SBI Life Life Insurance every fact disclosed to
him relevant to the acceptance of such risk or business howsoever the
Advisor is aware of such matter;
t. Promptly notify SBI Life Life Insurance of receipt by it or service on
it of any complaint, demand, notice or claim made or to be made
under a policy howsoever the advisor is aware of such matter.
u. Record and reolve, within the standard turn around time of 7days from
receipt, all the complaints and requests/inquiries received from
customers of Advisor and statutory/regulatory bodies and forward a
report of the complaints, requests and inquiries of the past week with
 the relevant documentation containing details like Date of Complaint,
Policy older Name, Advisor name and Code No., MOA Name and
No., Nature of Complaint, Date of Complaint Forwarded to the
concerned function for resolution, Status (Resolved /Pending),
Resolution date to SBI Life Life Insurance at the specified email
address on every Thursday of the next week.
v. Ensure that a strong needs analysis is carried out for every prospect
during the sales process;
w. Ensure strict adherence to the prevention of Money laundering and
Terrorist Financing Policy of SBI Life Life Insurance, the prevention
of Money Laundering Act, 2002, Rules thereunder and the IRDA
Anti Money Laundering (‘AML’) guidelines and modification thereto
and employ adequate know Your Customer (‘KYC’) standards as
prescribed therein;
x. In the event of finding any adverse or suspicious change on the
standing, integrity or reputation of the customer/policyholder,
Advisor should promptly disclose the same to the Principal
compliance officer of SBI Life Life Insurance in change of Anti
Money Laundering programme. In the event Advisor fails to comply
with this provision and/or exposes SBI Life Life Insurance to AML
related risks, SBI Life Life Insurance shall be entitled to terminate
this Agreement with all attendant consequences to the Advisor;
y. Act as a fiduciary, in good faith and I the best interests of SBI Life
Life Insurance at all times during the continuance of this Agreement;
and
z. Declare his adherence to the code of sales and Business Conduct in the
format prescribed in Schedule ‘A’.

TRAINING AND COACHING OF ADVISORS

 Refresher training is the basic given to the trainee advisors about what is
insurance, types of insurance, present scenario of life insurance in India and
scope and career growth in insurance with legal ideas related to insurance.

As per provisions of IRDA Act for training of life advisors (effective from
31st October 2004).

i. The applicant shall have to undergo at least 100 hours’ practical training
in life or general insurance business which may be spread over three to
four weeks, where such applicant is seeking license for the first time to
act as an insurance agent.

ii. The training duration should be minimum 18 working days excluding

Sundays and holidays.

iii. No product training/market survey should be included into this hundred

100 hours training. The product training, if any, to be given by the
insurance company should be over and above the minimum training hours
prescribed by the Authority

iv. The attendance record of the trainees should be maintained at the Institute
for necessary inspection at any given point of time.

v. In case of short fall of attendance, extra class may be permitted but the
extra hours may be specified separately with proper attendance and
details of faculty.

vi. Every Institute should have at least one qualified permanent faculty who
is an Associate or Fellow from the Insurance Institute of India for each
stream i.e. for Life and Non Life.

vii. The attendance register of the faculty members should be maintained at

the training institutes.
viii. The record of the payment made to faculty should be maintained at the
training institute i.e. batch wise payment detail should be maintained.

ix. The faculty should provide details of the other Institutes with whom they
have been empanelled as part time/guest faculty.

x. Register should be maintained at the training institute giving details of

batches completed, strength of the each batch, number of candidates
decertified, name of the sponsored insurer and details of faculty who
imparted the training with dates.

xi. The seating capacity of each class room should not exceed 40.

xii. The fresh accreditation will be given on need basis after assessing the
needs of the particular city/town.

xiii. The initial approval will be for a period of 3 years and consideration of
further renewal up to 3 years would depend on the satisfactory
compliance of requirements of accreditation.

xiv. The insurance companies would regularly send their officials to oversee
the proper conduct of the training at the institutes and would not sponsor
candidates to those institutes that are not maintaining the required
standards of and facilities for the training.

xv. The training institute must display the certificate of accreditation to

impart training issued by the Authority at the training institute.

xvi. The Institute should not allow a franchisee to conduct courses on its
behalf even if the faculty is that of the Institute. The Institute should
conduct the training on its own premises or hired premises with proper
infrastructure.
xvii. No marketing fee/consultancy fee payment is permitted for getting the
training batches.

xviii. It will be the responsibility of the Insurance Company to check the status
of the institute before sponsoring any candidates for training.

xix. In case of mofussil areas or the cities where there are no accredited
institutes and an insurance company intends to appoint agents, it will be
the responsibility of the insurance company to conduct training.

xx. The Institutes must keep with them one set of records of the training at
the place where the training is being imparted.

xxi. The Institute should confine its activities only to the place/city for which
it has been given the approval. No training outside the said place/city is
permitted.

xxii. The Institutes must submit a copy of the lease deed/rent agreement at the
time of seeking fresh accreditation/renewal/change of address of the
institute.

xxiii. On successful completion of training the candidates get COT i.e. the
Completion of Training Certificate by SBI Life.