Reliance Life launches new money-back plan

Anil Ambani Group controlled Reliance Life Insurance Ltd is planning to engage young graduates and housewives to break into the rural and semi-urban markets.

Unlike the traditional model of paying commission to insurance agents on the basis of business generated by them, Reliance Life plans to engage fresh graduates on a trainee basis on a fixed stipend to distribute its products.

This apart, the company also plans to employ young women freshly out of college or housewives at a fixed monthly salary in select locations, said Mr Malay Ghosh, Executive Director and President, Reliance Life.

Reliance Life, Mr Ghosh said, will report accounting profits this year.

Financial outlook

However, the company, which had expected to break even in the next three years, will be able to do so only after five years.

“For the last 18 months we have been making profits on a month-on-month basis. We are hopeful of making accounting profits this year. However, we will take five more years to break even because of the recent regulatory changes in the industry,” he pointed out.

The company today unveiled protection riders for its existing policies and also launched a new product — Reliance Life Insurance Guaranteed Money Back Plan. This apart, the company will also launch a unit-linked product — Classic II — by the end of this month.

shobha@thehindu.co.in