Project Report On Birla Sun Life

CHAPTER-1
INTRODUCTION
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BIRLA SUN LIFE INSURANCE
Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla
Group and Sun Life Financial Inc., a leading international financial services organization. The
local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial
Inc., offers a formidable value proposition to customers. Sun Life Financial and its partners
today have operations in key markets worldwide, including India, Canada, the United States, the
United Kingdom, Hong Kong, Philippines, Japan, Indonesia, China and Bermuda. Sun Life
Financial Inc. had assets under management of over US$ 386.82 billion, as on 31 March 2007.
Sun Life Financial Inc. is a leading performer in the life insurance market in Canada.
BSLI in its five successful years of operations has contributed significantly to the growth and
development of the life insurance industry in India. It pioneered the launch of Unit Linked Life
Insurance plans amongst the private players in India. It was the first player in the industry to sell
its policies through the Bank assurance route and through the internet. It was also the first private
sector player to introduce a pure term plan in the Indian market. This was supported by sales
practices, which brought a degree of transparency that was entirely new to the market. The
process of getting sales illustrations signed by customers, offering a free look period on all
policies, which are now industry standards were introduced by BSLI.
Being a customer centric company, BSLI has invested heavily in technology to build world class
processing capabilities. BSLI has covered more than one and a half million lives since inception
and its customer base is spread across 100 cities in India. All this has assisted the company in
cementing its place amongst the leaders in the industry in terms of new business premium
income. Birla Sun Life Insurance (BSLI), one of the leading private life insurers in India today
announced the inimitable achiever, cricketer Kapil Dev as their corporate brand ambassador. The
cricketing supreme will be endorsing BSLI in all its marketing initiatives. Birla Sun Life
Insurance is a value-driven brand which has a national brand recall of 70 percent. The objective
of appointing a brand ambassador is to grow its brand recall as it goes national in its distribution
reach and fuel business growth. As a brand ambassador, Kapil Dev will play a key role in the
brand and product marketing and promotional activities. BSLI has always used an integrated
marketing approach, which will be strengthened further.
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Commenting on the association with Kapil Dev, Mr. S. K. Mitra, Director, Financial Services,
Aditya Birla Group and currently in charge of BSLI expressed, "The Birla Sun Life Insurance
business distribution network is national in nature covering more than 1000 points across the
country .We have made our entry in several tier I and tier II towns. It is therefore very important
for the brand to connect at the grass root level and create trust. We believe that our association
with Kapil Dev as our brand ambassador will help us create this connects in a shorter period of
time. We therefore now have two strong connects — our parent brand Birla and our brand
Ambassador Kapil Dev".
Kapil Dev, also known as the Haryana Hurricane, was born on 6 January 1959 in Chandigarh.
He played his first competitive game of cricket at the age of 13 years and made his test debut on
16 October 1978 at Faisalabad against Pakistan. Kapil Dev remained India's top strike bowler for
almost 15 years. His extraordinary test match figures of more than 5000 runs and 434 wickets
along with 64 catches show that he was a world class cricketer and an all-rounder. He has raised
the mantle of India to sporting glory by winning us the World Cup.
In a study conducted by BSLI, Kapil Dev connected extremely well with the life insurance
category and had high acceptance by the masses. Our survey suggests that he is seen as a very
good fit for the BSLI brand. He is very much loved and respected by a vast majority of the
population.
On 26 November 2006, Birla Sun Life hosted the annual golf tournament at the Chembur Golf
Club in Mumbai where Kapil Dev participated.
About Birla Sun Life Insurance

Birla Sun Life Insurance Company Limited is a joint venture between the Aditya Birla Group,
one of the largest business houses in India and Sun Life Financial Inc., a leading international
financial services organization. The local knowledge of the Aditya Birla Group combined with
the expertise of Sun Life Financial Inc., offers a formidable protection for your future.
Birla Sun Life Insurance (BSLI), in its five successful years of operations, has contributed
significantly to the growth and development of the life insurance industry in India. It pioneered
the launch of unit linked life insurance plans amongst the private players in India. It was the first
player in the industry to sell its policies through the banc assurance route and through the
internet. It was the first private sector player to introduce a pure term plan in the Indian market.
This was supported by sales practices which brought a degree of transparency that was entirely
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new to the market. The process of getting sales illustrations signed by customers and offering a
free look period on all policies, which are now industry standards, were introduced by BSLI.
Being a customer-centric company, BSLI has invested heavily in technology to build world class
processing capabilities. BSLI has covered more than a million lives since inception and its
customer base is spread across more than 1000 towns and cities in India. All this has assisted the
company in cementing its place amongst the leaders in the industry in terms of new business
premium income. The company's current capital base is Rs.520 crore.
About the Aditya Birla Group

The Aditya Birla Group has a turnover close to Rs.38,000 crore (as on 31 March 2008) and is
one of the largest business houses in India. It enjoys a leadership position in all the sectors in
which it operates. With over 75 business units spanning the South East Asian belt, Africa,
Canada and the UK among others, it is reckoned as India's first multinational corporation. The
group is anchored by 72,000 employees and has seven lakh shareholders, with a market
capitalization of Rs.53,400 crore.
About Sun Life Financial Inc.

Sun Life Financial Inc. is a leading international financial services organization providing a
diverse range of wealth accumulation and protection products and services to individuals and
corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today
have operations in key markets worldwide, including Canada, the United States, the United
Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of 31
March 2008, the Sun Life Financial group of companies had total assets under management of
US$ 343 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under ticker symbol "SLF".
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Key peoples of organisation
Board of Directors
• Mr. Kumar M Birla
• Mr. Donald A Stewart,
• Mr. Bishwanath N Puranmalka
• Mr. Ajay Srinivasan
• Mr. Gary M Comerford
• Mr. Suresh N Talwar
• Mr. Gian P Gupta
• His Highness Maharaja G Singh
• Mr. Stephan Rajotte
• Dr. Bharat K Singh
Investment Committee
• Mr. B. N. Puranmalka
• Mr. Eugene Lundrigan
• Mr. Ajay Srinivasan
• Mr. Vikram Mehmi
• Mr. Mayank Bathwal
• Mr. Fabien Jeudy
• Mr. Vikram Kotak
• Ms. Keerti Gupta
Management Team
Mr. Vikram Mehmi
President & Chief
Executive Officer
Mr. Mayank Bathwal
Chief Financial Officer
Mr. Mario Braganza
Chief Operating Officer
Mr. E.N. Goveia
Head - Direct Sales Force
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Mr. Amit Punchhi
Senior Vice President - Third Party Distribution
Mr. Bhavesh Sanghvi
Head - Group Life & Pensions
Mr. Snehal Shah
Senior Vice President - Operations
Ms. Anjana Grewal
Senior Vice President - Marketing & Communications
Mr. Rajesh Bhojani
Senior Vice President - DSF Expansion
Mr. K.H. Venkatachalam
Vice President – Human Resource
Mr. Fabien Jeudy
Vice President, Chief & Appointed Actuary
Mr. Lalit Vermani
Vice President - Compliance
Mr. Melvyn D'souza
Vice President – Risk Management and Internal Audit
Mr. Vikram Kotak
Vice President - Investments
Mr. Bhalachandra Nayak
Vice President – Strategy
Competitors:-
• Life insurance corporation
• ING vysya life insurance
• Max network life insurance
• MetLife insurance
• Aviva life insurance
• Bharathi Axa life insurance
• Bajaj Allianz life insurance
• Tata AIG life insurance
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• ICICI Prudential Life Insurance
• Reliance life insurance
• Kotak Mahindra life insurance
Competitors in Detail:-
➢ Aviva life insurance: Aviva Life Insurance Company India Pvt. Ltd. is a joint venture
between Aviva of UK and Dabur, one of India's leading producers of traditional healthcare
products. Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the
balance 74 per cent share.
➢ Bajaj Allianz: Bajaj Allianz is a joint venture between Allianz AG one of the world's largest
insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the
world. Bajaj Allianz is into both life insurance and general insurance. Allianz Group is one of
the world's leading insurers and financial services providers. Founded in 1890 in Berlin,
Allianz is now present in over 70 countries
➢ HDFC Standard Life Insurance Co. Ltd: is a joint venture between HDFC Ltd., India's
largest housing finance institution and Standard Life Assurance Company, Europe's largest
mutual life company. It was the first life insurance company to be granted a certificate of
registration by the IRDA on the 23rd of October 2000.
➢ ING Vysya Life Insurance Company Limited: is a joint venture between Vysya Bank and
ING Group of Holland, the world's 4th largest financial services group, with presence across
50 countries, and a heritage of over 150 years.
➢ Kotak Mahindra Old Mutual Life Insurance Ltd: is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading
financial institutions and offers a range of financial services such as commercial banking.
➢ Life Insurance Corporation of India: (LIC) is an autonomous body authorized to run the
life insurance business in India with its Head Office at Mumbai. It has been established by an
act of the Parliament and started functioning from 1/9/1956.
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➢ ICICI Prudential Life Insurance : ICICI Prudential life insurance is a part of ICICI Bank.
➢ Max New York Life Insurance Company Limited is a joint venture between Max India
Limited, a multi-business corporate, and New York Life International, a global expert in life
insurance. New York Life is a Fortune 100 company that has over 160 years of experience in
the life insurance business.
➢ MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and its
Indian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank, Karnataka
Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu.
➢ Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance
- Anil Dhirubhai Ambani Group. The company acquired 100 per cent shareholding in AMP
Sanmar Life Insurance Company in August 2005. Taking over AMP Sanmar Life provided
Reliance Life Insurance a readymade infrastructure and a portfolio.
➢ SBI Life Insurance is a joint venture between the State Bank of India and Cardiff SA of
France. SBI Life Insurance is registered with an authorized capital of Rs 500 crore and a paid
up capital of Rs 350 cores.
➢ Tata AIG Life Insurance Company Limited is a joint venture between Tata Group and
American International Group, Inc. (AIG). Tata Group is one of the oldest and leading
business groups of India. Tata Group has had a long association with India's insurance sector
having been the largest insurance company in India prior to the nationalization of insurance.
The Late Sir Dorab Tata was the founder Chairman of New India Assurance Co. Ltd., a
group company incorporated way back in 1919.
➢ Shriram Life Insurance Company Ltd is a joint venture between the Chennai-based
Shriram Group and the South African insurance major Sanlam. The company launched its
operation in India in December 2005
STRENGTH:
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➢ Multi-channel distribution and one of the largest distribution networks in India.
➢ Implementing Six-Sigma process.
➢ Customer centric products and services.
➢ Superior investment and risk management framework
➢ 1 Million Policies sold within 3 and half years.
➢ Company has maximum number of MDRT as well as good number of HNI advisors.
➢ Training process of the company is very strong.
➢ Different plan for different peoples.
➢ According to the change in surrounding environment like changes in customer requirement.
WEAKNESS:
➢ COMPANY does not penetrate on the rural market at a time.
➢ There is no plan for the low income group.
➢ Fees for the advisor is high than the other company.
OPPORTUNITY:
➢ Insurance market is very big, where company can expand its horizon in insurance industry.
Though good investment and insurance it is easy to top Indian customers.
➢ The huge insurance market (77%) is left so company has opportunity to expand our products.
➢ To associate with the more number of HNI.
THREATS:
➢ OLD HABITS DIE HARD’: It’s still difficult task to win the confidence of public towards
private company.
➢ The company is facing major threats from LIC -which is an only government company.
➢ Plans for all income groups are not available which can create adverse effect later on the
market share of the company.
1.2 INTRODUCTION TO THE PROJECT

EVALUATION OF INSURANCE
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The evaluation of insurance dates back as early as the commencement of trade between two
countries in England, especially between the European countries. During the transportation of
goods, there were chances of the ship being drowned in the rough sea conditions or attacked by
the pirates, leading to huge loss to the party sending goods. The traders of England devised a
way whereby the loss of the goods would be compensated by every trader putting in some
amount as per their financial strength so that a single party may not be the loser; this is the earlier
concept of insurance. This concept is taking shape for the last 300 years, yet in India the first
insurance company was established in 1818 with the advent of European widows. The name of
the company was oriental life insurance company.
WHAT IS INSURANCE?
Insurance is a mechanism that ensures an individual to thrive on adverse consequences by
compensating the individual, his/her loss financially. Every individual in the world and all
activities connected with him/her, be it life, profession, business, travel or any other pursuits are
subject to unforeseen and uncalled for hazards or dangers. The benefit that an individual enjoys
in his life by owning a car or a house or a factory can be snatched by sudden accident which can
render even the individual immobile, and his family vulnerable. At this critical juncture, only
insurance helps him not only to survive but recover his loss and continue his life in a normal
manner, which would otherwise be unthinkable.
The concept of insurance is quite simple. People, who are in similar trade and are exposed to the
same risks, congregate and some to an agreement that if any individual member suffer a loss,
then the loss will be shared by others and minimized in order to enable the individual member
recover from the loss and cover his ground. Similarly the different kinds of risks can be
identified and separate groups can be formed to counter such risks and reduce to impact to
manageable proportion, in which the share could be collected from the members either after the
loss or in advance, at the time of admission to the group. This is an exemplary sign of humanity
and insurance therefore serve the mankind to a great extent; a point most of the individual tend to
overlook, since monetary aspect is involved. Now such is for tangible assets.
The concept of insurance has been extended beyond the coverage of tangible assets. Exporters
run the risk of importers in other country defaulting as well as losses due to sudden fluctuations
in the currency exchange rates, economic policies turmoil. The risk are not insured. Doctors run
the risk of being charged with negligence and can subsequently liable for damage. The amount in
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question can be fairly large, beyond the capacity of the individual to bear. These are insured.
Thus insurance is extended to intangible assets. In some countries even the voice of a singer ,
legs of the footballer can be insured, even though the advantage of spread may not be available
in these cases. Satisfaction of economics needs requires generation of income from some
sources. If the property, which is the source of such income, were lost fully or partially,
permanently, or temporarily, the income too would stop. The purpose of insurance is to
safeguard against such misfortune few, through the help of the fortune many, who were exposed
to the same risk , but saved from the misfortune . Thus the essence of insurance is to share losses
substitute certainty by uncertainty.
The different types of human activities that come under the umbrella of insurance are as follows.
1. House/office/factory or any moveable object destroyed in life - Fire insurance

2. Shipment or transportation of goods - Marine insurance
By ship, destroyed in catastrophe.
3. jewellery /cash/ household goods - Burglar insurance
Stolen or robbed
4. Goods in transit by roads or railways destroyed. - Carrier insurance
5. Theft or accident of vehicles - Vehicle insurance
6. Financial cover in ailment /surgery etc - Health insurance
All these are non-life insurance. In conclusion one can safely say that the purpose of insurance
be it or non-life is to transfer the financial loss to the insurance company who spreads in over to
the policyholders.
Life insurance
Life insurance (Life Assurance in British English) is a type of insurance. As in all insurance, the
insured transfers a risk to the insurer. The insured pays a premium and receives a policy in
exchange. The risk assumed by the insurer is the risk of death of the insured.
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How life insurance works
There are three parties in a life insurance transaction; the insurer, the insured, and the owner of
the policy (policyholder), although the owner and the insured are often the same person. For
example, if John Smith buys a policy on his own life, he is both the owner and the insured. But if
Mary Smith, his wife, buys a policy on John's life, she is the owner and he is the insured. The
owner of the policy is called the grantee (he or she will be the person who will pay for the
policy). Another important person involved is the beneficiary. The beneficiary is the person or
persons who will receive the policy proceeds upon the death of the insured. The beneficiary is
not a party to the policy, but is designated by the owner, who may change the beneficiary unless
the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that
beneficiary must agree to changes in beneficiary, policy assignment, or borrowing of cash value.
The policy, like all insurance policies, is a legal contract specifying the terms and conditions of
the risk assumed. Special provisions apply, including a suicide clause wherein the policy
becomes null if the insured commits suicide within a specified time for the policy date (usually
two years). Any misrepresentation by the owner or insured on the application is also grounds for
nullification. Most contracts have a contestability period, also usually a two-year period; if the
insured dies within this period, the insurer has a legal right to contest the claim and request
additional information before deciding to pay or deny the claim.
The face amount of the policy is normally the amount paid when the policy matures, although
policies can provide for greater or lesser amounts. The policy matures when the insured dies or
reaches a specified age. The most common reason to buy a life insurance policy is to protect the
financial interests of the owner of the policy in the event of the insured's demise. The insurance
proceeds would pay for funeral and other death costs or be invested to provide income replacing
the deceased's wages. Other reasons include estate planning and retirement. The owner (if not the
insured) must have an insurable interest in the insured, i.e. a legitimate reason for insuring
another person’s life. The insurer (the life insurance company) calculates the policy prices with
intent to recover claims to be paid and administrative costs, and to make a profit. The cost of
insurance is determined using mortality tables calculated by actuaries.
Actuaries are professionals who use actuarial science which is based in mathematics (primarily
probability and statistics). Mortality tables are statistically based tables showing average life
expectancies. The three main variables in a mortality table are age, gender, and use of tobacco.
The mortality tables provide a baseline for the cost of insurance. In practice, these mortality
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tables are used in conjunction with the health and family history of the individual applying for a
policy in order to determine premiums and insurability. The current mortality table being used by
life insurance companies in the United States and their regulators was calculated during the
1980s. There is currently a measure being pushed to update the mortality tables by 2008.
The current mortality table assumes that roughly 2 in 1,000 people aged 25 will die during the
term of coverage. This number rises roughly quadratically to about 25 in 1,000 people for those
aged 65. So in a group of one thousand 25 year old males with a $100,000 policy, a life
insurance company would have to, at the minimum, collect $200 a year from each of the
thousand people to cover the expected claims. The insurance company receives the premiums
from the policy owner and invests them to create a pool of money from which to pay claims, and
finance the insurance company's operations. Contrary to popular belief, the majority of the
money that insurance companies make comes directly from premiums paid, as money gained
through investment of premiums will never, in even the most ideal market conditions, vest
enough money per year to pay out claims. Rates charged for life insurance increase with the
insured's age because, statistically, a people are more likely to die as they get older. Since
adverse selection can have a negative impact on the financial results of the insurer, the insurer
investigates each proposed insured (unless the policy is below a company-established minimum
amount) beginning with the application, which becomes part of the policy. Group Insurance
policies are an exception. This investigation and resulting evaluation of the risk is called
underwriting. Health and lifestyle questions are asked, and the answers are dutifully recorded.
Certain responses by the insured will be given further investigation. Life insurance companies in
the United States support The Medical Information Bureau, which is a clearinghouse of medical
information on all persons who have ever applied for life insurance. As part of the application,
the insurer receives permission to obtain information from the proposed insured's physicians.
Life insurance companies are never required by law to underwrite or to provide coverage on
anyone. They alone determine insurability, and some people, for their own health or lifestyle
reasons, are uninsurable. The policy can be declined (turned down) or rated. Rating means
increasing the premiums to provide for additional risks relative to that particular insured.
Many companies use four general health categories for those evaluated for a life insurance
policy. These categories are Preferred Best, Preferred, Standard and Tobacco. Preferred Best
means that the proposed insured has no adverse medical history is not under medication for any
condition, and his family (immediate and extended) has no history of early cancer, diabetes or
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other conditions. Preferred is like Preferred Best, but it allows that the proposed insured is
currently under medication for the condition and may have some family history. Most people are
in the Standard category. Profession, travel, and lifestyle also factor into not only which category
the proposed insured falls, but also whether the proposed insured will be denied a policy. For
example, a person who would otherwise be in the Preferred Best category will be denied a policy
if he or she travels to a high risk country.
Upon the death of the insured, the insurer will require acceptable proof of death before paying
the claim. The normal minimum proof is a death certificate and the insurer's claim form
completed, signed, and often notarized. If the insured's death was suspicious and the policy
amount warrants it, the insurer may investigate the circumstances surrounding the death, before
deciding whether there is a legal obligation to pay the claim.
Proceeds from the policy may be paid in a lump sum or as an annuity paid over time in regular
recurring payments for either for the life of a specified person or a specified time period.
Contribution of life insurance in development of economy

➢ Contribution of Life Insurance Sector in the Economy
➢ Flow of Insurance Industry in India
➢ Structure of insurance industry: Snap Shot
Industry
➢ Aggregation of long term savings
➢ Spread of financial services in rural Areas
➢ Long term funds for infrastructure development of capital Markets/ Economic Growth
➢ Employment generation
➢ Special Futures
➢ Growth Potential
DETAILS OF PRODUCTS
PRODUCTS
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Life is unpredictable. But in face of adversity, our responsibilities towards our parents, children
and loved ones need not be compromised. Insurance planning equips you to smooth out the
uncertainties and adversities that life might send your way, so that the best that life has to offer,
secure in the knowledge that your beloved ones are well provided for. BSLI offers a complete
range of insurance products
1. Protection Plans
2. Savings Plans
3. Child Plans
4. Investment Plans
5. Retirement Plans
6. Group Plans
7. Rural Plans
Insurance Plans
BSLI offers Lifeguard - a set of pure protection plans. Choose from amongst three different
product structures to insure your life and provide total security to your family, at a very
affordable cost.
Level Term Assurance with return of premium

➢ On death the entire sum assured will be paid.
➢ On maturity, all the premiums paid will be returned.
Level Term Assurance without return of premium

➢ No survival or maturity benefits.
You can also enhance the above two policies by adding Accident
& Disability Benefit Rider and Waiver of Premium Rider (WOP)
Level Term Assurance - Single premium:

➢ No survival or maturity benefits.
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Protection Plans
BSLI offers a variety of policies that give you the benefits of protection and the opportunity to
save for important assets or events, like a home, a car or a wedding.
A regular premium unit-linked insurance plan with an assurance of Capital Guarantee# with the
added advantage of flexible liquidity option. An ideal plan for long term planning with the
benefit of liquidity.
The key features of the plan are:

➢ Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of the
annual premium. You can also choose the term of the plan.
➢ At the end of the term, the higher of the value of units or the guaranteed value is paid. On
death, Sum Assured along with the higher of value of units or the guaranteed value is
payable.
➢ Facility to make withdrawals from the 6th policy year onwards till the end of the policy term.
Every year withdraw up to 10% of the value of units.
➢ Additional credits payable as a percentage of the initial annual premium are paid along with
the death or maturity benefit.
➢ Additional insurance for 10 years after the maturity, for an amount of 50% of the Sum
Assured
Savings Plans
➢ Flexibility to make additional investment with the help of the top-up facility.
➢ Flexibility to increase / decrease your annual premium Amount
➢ Facility of Automatic Premium Payment- With this facility you can take a temporary break
from premium payment.
➢ Total transparency with the premium allocations, and other charges declared upfront.
➢ The guaranteed value of the unit fund is the value of all invested premiums (premiums net of
all charges) along with the declared bonus interests.
With Automatic Premium Payment facility, you can avail a temporary break from premium
payment for a maximum of 1 year. This facility is available once if the premium paying term is
less than 15 years and twice, if it is 15 years or more. You can also enhance your policy by
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adding Accident & Disability Benefit Rider , Waiver of Premium Rider and Critical Illness Rider
.A regular premium unit-linked insurance plan with an assurance of Capital Guarantee# An ideal
plan for your long-term savings and protection requirement.
The key features of the plan are:

annual premium. You can also choose the term of the plan.
➢ At the end of the term, the higher of the value of units or the guaranteed value is paid. On
death, Sum Assured along with the higher of value of units or the guaranteed value is payable
➢ Additional insurance for 10 years after the maturity, for an amount of 50% of the Sum
Assured.
➢ Flexibility to increase / decrease your annual premium amount
➢ Facility of Automatic Premium Payment- With this facility you can take a temporary break
from premium payment.
➢ Total transparency with the premium allocations, and other charges declared upfront. The
guaranteed value of the unit fund is the value of all invested premiums (premiums net of all
charges) along with the declared bonus interests.
With Automatic Premium Payment facility, you can avail a temporary break from premium
payment for a maximum of 1 year. This facility is available once if the premium paying term is
less than 15 years and twice, if it is 15 years or more.
The capital guarantee is applicable only on the invested premium and the declared bonus
interests. You can also enhance your policy by adding Accident & Disability Benefit Rider,
Waiver of Premium Rider and Critical Illness Rider.
A unit-linked insurance plan with an assurance of Capital Guarantee which offers you the benefit
of a limited premium payment term. An ideal plan for protection with wealth creation that offers
the flexibility of a limited premium paying term.
➢ Flexibility to choose a premium payment term of 5, 7 or 10 years for a maturity term of 10,
15 or 20 years respectively.
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annual premium.
➢ At the end of the term (maturity), the higher of the value of units or the guaranteed value is
paid. On death, Sum Assured along with the higher of value of units or the guaranteed value
is payable.
➢ Facility to make withdrawals from the 6th policy year onwards till the end of the policy term.
Every year withdraw up to 10% of the value of units
➢ Flexibility to increase / decrease your annual premium amount
➢ Total transparency with the premium allocations, and other charges declared upfront.
➢ The guaranteed value of the unit fund is the value of all invested premiums (premiums net of
all charges) along with the declared bonus interests.
➢ The capital guarantee is applicable only on the invested premium and the declared bonus
interests. You can also enhance your policy by adding Accident & Disability Benefit Rider
and Critical Illness Rider.
➢ Presenting Premier Life – The Preferred plan for the Preferred Customer. The key features of
the plan are:
➢ Limited premium payment option: Choose from among a 3, 5, 7 or 10 year premium paying
term.
➢ Choice of sum assured: Choose a sum assured, which is a minimum multiple of 1 and a
maximum multiple of 25 times the annual contribution.
➢ Additional allocation of units on a periodic basis.
➢ Facility to top-up your investment any time you have surplus funds.
➢ Choose from among four funds, based on your investment objective and risk appetite.
Flexibility to decrease your sum assured.
➢ Add-on riders to protect you against any eventuality.
➢ Loans against the policy.
You can also enhance your policy by adding Critical Illness
Rider, Accident & Disability Benefit Rider.
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Presenting Life Time – unit –linked plans that meet your changing needs
over a lifetime. These solutions have been developed to meet your savings, protection
and investment needs at every stage in life.
Protection
➢ Choose a specified level of protection (available only with Lifetime).
➢ Two levels of Sum Assured to choose from (available only with Lifetime II).
➢ Flexibility to increase or decrease your sum assured.
➢ Add-on riders to protect you against any eventuality.
Savings
➢ Flexibility to increase or decrease your contribution.
➢ Facility of Premium Holiday, wherein the policy continues even if there is a temporary break
in the payment of annual contribution (available only with Life Time).
➢ Facility of Automatic Cover Continuance, wherein the policy continues even if there is a
temporary break in the payment of annual contribution
➢ Facility to top-up your investment any time you have surplus funds.
➢ Additional allocation of units on a periodic basis.
➢ Loans against the policy.
Investment:
➢ Choose from among four funds, based on your investment objective and risk appetite.
➢ Choice to switch between investments options (4 free switches every policy year).
You can also enhance your policy by adding Critical Illness Rider, Major Surgical Assistance
Rider, Accident & Disability Benefit Rider, Accident Benefit Rider (available only with Life
Time) and Waiver of Premium Rider. An insurance plan that gives added protection, savings
and multiple options, all in one!
➢ The flexibility to choose your premium contribution.
➢ The flexibility to choose amongst three levels of cover (in the form of sum assured) for the
same amount of total annual contribution.
➢ The flexibility of shifting between the three levels of cover, as you require.
➢ The flexibility of receiving your maturity proceeds as a lump sum or in equal annual
installments over 3 or 5 years.
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You can also enhance your policy by adding Variety of Riders An insurance plan that gives
you added protection, savings, multiple options, plus the power of liquidity.
➢ The flexibility to choose your premium contribution.
➢ The flexibility to choose amongst three levels of cover (in the form of sum assured) for the
same amount of total annual contribution.
➢ The flexibility of shifting between the three levels of cover, as you require.
➢ The flexibility of receiving your maturity proceeds as a lump sum or in equal annual
installments over 3 or 5 years.
➢ The flexibility of withdrawing up to 10% of the accumulated value of your policy, after the
first 5 policy years.
You can also enhance your policy by adding Variety of Riders An ideal plan for those who
want to accumulate funds on a regular basis while enjoying insurance protection.
➢ Guaranteed Benefits: Guaranteed additions @ 3.5% of the Sum Assured, compounded
annually for the first 4 years of the policy.
➢ Extended Life Cover: An extended cover for 5 years after the maturity of the policy, for
50% of the sum assured, at no extra cost.
➢ Maturity Benefit: At the end of the term, the policyholder receives the full sum assured, the
guaranteed additions and the vested bonuses.
➢ Death Benefit: The beneficiary receives the sum assured, the guaranteed additions and the
vested bonuses in case the life assured were to meet with an unfortunate event. In case the life
assured is aged 7 years or less, the basic premium paid will be returned.
You can also enhance your policy by adding Critical Illness Rider, Major Surgical Assistance
Rider, Accident & Disability Benefit Rider, Waiver of Premium Rider (WOP) As a responsible
parent, you will always strive to ensure a hassle-free, successful life for your child. However, life
is full of Uncertainties and even the best-laid plans can go wrong. Here’s how you can give your
child a 100% safe and assured tomorrow, whatever the uncertainties. Smart Kid is especially
designed to provide flexibility and safeguard your child’s future education and lifestyle, taking
all possibilities into account. Choose from amongst a basket of 4 plans:
➢ Smart Kid regular premium

➢ Smart Kid unit-linked regular premium
➢ Smart Kid unit-linked regular premium II
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➢ Smart Kid unit-linked single premium II
CHILD PLANS
All these plans offer you:
➢ Financial Benefits: Regular payments at critical stages in your child’s life, like Board
examinations, Graduation and Post-graduation.
➢ Total peace of mind, even if you are not around
➢ Sum Assured is paid immediately: Ensures that your loved ones stay financially secure,
even in your absence.
➢ All future premiums are waived: Ensuring that your family is not financially burdened in
your absence.
➢ Policy benefits continue: The educational benefits of the policy continue, ensuring that your
child can realize his or her dreams without any hassles.
➢ Development Allowance: Smart Kid guarantees regular income to secure your child’s
educational career and also ensures his or her all-round development, for a nominal additional
amount. The Income Benefit Rider takes care of this through an annual payment of 10% of
the sum assured, to your child, till the maturity of the policy, in the unfortunate event of the
death of the parent. All Smart Kid plans can be enhanced with the Accident & Disability
Benefit Rider and Income Benefit Rider . You can also an Accident Benefit Rider to a
Smart Kid Regular Premium policy, and a Waiver of Premium Rider (WOP) to Smart Kid
unit-linked regular premium policy.
Life Link II is a unique plan that combines the security of a life insurance policy with the
opportunity of enjoying high returns on your investments, without the market
risks compromising on the protection of your family!
Death Benefit: The Sum Assured under the product has 2 options, either 500% of the initial
premium or 105% of the initial premium. In the event of an unfortunate death, the beneficiary
will receive higher of the value of units or the initial death benefit, less any withdrawals.
Withdrawal Benefit: One can make partial withdrawals from the accumulated value of the
policy after completion of one policy year.
Flexibility: Choose from four fund options, based on your investment objective and risk
appetite. If at a later stage your financial priorities change, you can switch between the various
fund options, absolutely free, 4 times a year.
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Investment Plans
Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier
generations. For you, this increase will mean a longer retirement life, stretching into a couple of
decades. BSLI Retirement Solutions that combine the best of insurance and investment. These
solutions are developed to ensure your peace of mind for the years to come.
1. Why plan for retirement?
2. How much should I set aside for retirement?
3. The impact of inflation on your retirement savings
4. Why plan early?
5. About Annuities
Why plan for retirement?

For too many people, the joy of retirement after years of hard work is eclipsed by the financial
uncertainties that it brings. Despite all the planning and saving, you can never sure whether your
money will last a lifetime. Retirement planning offers a way to ensure a more enjoyable, stress
free tomorrow. A prudent plan will ensure that increasing life expectancy, higher inflation and
increasing taxes do not eat away into your hard earned savings.
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Retirement Plans
How much must I set aside for retirement?
To ensure a comfortable retired life, you would be wise to invest money into additional avenues
like pension plans. How much you need to invest can be answered by answering some questions
such as:
1. How long do you have to save that amount before retirement?
2. Where can you invest your retirement money?
3. How much risk are you willing to take on your investments?
In an era of competitive parity, the only asset that makes a decisive difference between corporate
success and failure is the quality of human capital. Employee benefits have proven to be an
excellent tool to optimize the retention of talent and improve an organization’s bottom-line. The
quality of an organization’s employee benefits establishes and maintains a company's image as a
caring employer. Optimum care of employees is a long-term investment that results in a
sustained competitive advantage for an organization in the times to come.
BSLI Group Solutions Advantage:
➢ An integrated basket of employee benefits solutions that offer incomparable flexible benefits.
➢ Sound investment management that focuses on safety, stability and profitability of the
portfolio.
➢ Personalized financial planning for your employee that takes care of his/her changing
financial needs at every stage of life.
➢ Quality service initiatives and transparency across all operations, promising superlative
operational efficiency.
Group Solutions
Group Term Assurance: Helps provide affordable cover to members of a group.
Group Gratuity Plan: Helps employers fund their statutory gratuity obligation in a flexible and
hassle-free manner.
Group Superannuation Plan: A flexible scheme (defined benefit and defined contribution) to
provide a retirement kitty for each member of the group.
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Group Term Assurance:
BSLI flexible group term solution helps provide affordable cover to members of a group. The
cover could be uniform or based on designation/rank or a multiple of salary, and can be extended
to all employees between the ages of 18 and 65 years.
The benefit under the policy is paid on the event of the member’s death to the beneficiary
nominated by the member. It is a one-year renewable policy where one master policy covers all
proposed employees comprising the group, with a minimum group size of 25 persons. New
members can join the group and outgoing members can leave the group at any point during the
policy term.
Highlights include:
➢ Greater convenience for the employees with relaxed underwriting and medical
requirements.
➢ "Free Cover Limits" with simplified underwriting depending upon the number of
employees in the group and the level of cover chosen.
➢ Guaranteed benefit: On death during the term of the contract (while in Service), the sum
assured will be paid to the beneficiary of the employee.
➢ Choice of additional coverage in form an Accident and Disability Benefit Rider and Critical
Illness Cover
➢ Premium is viewed as a business expense in the year of payment.
Group Gratuity Plan:

BSLI group gratuity plan helps employers fund their gratuity obligation in a scientific manner.
Employers can avail of the tax benefits as applicable to approved gratuity funds. The plan can
also be customized to structure schemes that can provide benefits beyond the statutory
obligations. Highlights include:
➢ Wider choice of investments with Market Linked Plans - to meet the diverse financial
goals. We offer 4 investment options (short-term debt, debt and balanced and capital
guarantee plan) where investments will be made in accordance with the fund objectives.
➢ Transparency through Daily disclosure of Unit Value and regular disclosure of the portfolio
of each of the investment option
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➢ Flexibility through switching and contribution redirection option to enable reshuffling of
portfolio
➢ Bundled Life Cover greater value to the employee by packaging life insurance covers with
the gratuity, with minimal amount of underwriting.
➢ Actuarial services to provide a scientific estimation of the gratuity liability.
➢ Low explicit charge structure with the conditions for exit specified upfront.
➢ Enhanced service levels through faster claim settlement, easier access to information and
regular statements.
➢ Complete end to end solution in the legal and regulatory approval process for
scheme set up or transfer
Employee Benefits:
➢ The contribution made by the employer is not included in the value of taxable perquisites in
the hands of the employee.
➢ Gratuity received up to Rs 350000 is exempt from Income tax under Sec 10(10)
➢ Annual contribution up to 8.33% of salary bill in a financial year is allowed a deduction for
the purpose of computation of profits and gains of business.
➢ Contribution towards past service liability is allowed as deduction as per the Income Tax
rules.
Group Superannuation Plan:

BSLI Superannuation Scheme (for both Defined Benefit and Defined Contribution funds)
offers substantial benefits to both employers and employees. The employer and employee can
avail of tax benefits applicable to an approved superannuation trust. The scheme will provide for
a retirement fund for each participating employee. An employee would be able to choose from
various annuity options or opt for partial commutation of corpus at retirement.
Highlights include:
➢ Wider choice of investments with Market Linked Plans – to meet the diverse financial
goals. We offer 5 investment options (short-term debt, debt, balanced, growth and capital
guarantee plan) where investments will be made in accordance with the fund objectives.
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➢ Control - Each member/employer can exercise greater control over investments by choosing
one or more of the investment options.
➢ Multiple Annuity Options - 5 annuity options and open market option
➢ Transparency - Transparency through Daily disclosure of Unit Value and regular disclosure
of the portfolio of each of the investment option
➢ Flexibility - Flexibility through switching and contribution redirection option to enable
reshuffling of portfolio
➢ Low explicit charge structure with conditions for exit specified upfront.
➢ Enhanced service levels through faster claim settlement, easier access to information and
regular statements.
➢ Complete end to end solution in the legal and regulatory approval process for scheme set up
or transfer BSLI Rural Products are designed to meet the needs of the rural consumers. These
products offer the following features:
1. Low and Affordable Premiums
2. Life Cover
3. Savings Option
4. Hassle free procedure
BSLI offers 2 specially designed rural plans.

a) BSL I – Endowment Plan
b) BSLI - Regular Premium
BSLI Endowment Plan:
BSLI offers the following features:
Rural Plans
➢ Life Cover and Savings
➢ Regular Premiums
➢ Age at entry 18 - 45 Yrs
➢ Premium Mode Half Yearly / Yearly
➢ Term 5,10,15 Yrs
➢ Sum Assured Rs.5,000 -20,000
➢ Premium / Year Rs. 507 - 553 ( SA: Rs.10,000)
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➢ Maturity/Death benefit Sum Assured
BSLI - Regular Premium:

BSLI is a regular premium policy with the following features:
➢ Individual policy
➢ Only Life cover
➢ Term - 3 & 5 Yrs
➢ Age independent premium
➢ Age at entry 18 - 45 Yrs
➢ Sum Assured Single
➢ Premium / Year Rs 50 – 200
➢ Maturity/Death benefit Rs.5,000 - 20,000
➢ Death Benefit Sum Assured
IRDA:
The insurance sector has been opened up in India, as there was an urgent need. The international
experience indicates those country with a liberalized insurance sector have witnessed a rapid
growth in premium volumes enhancing the domestic saving rate. This happened in China,
Malaysia and Singapore where a competitive market has led to improvement in Services and
quicker settlement of claims. It is also important to note that competition will bring about
advancement in information, communication and technology. And rightly therefore a decision
was taken by the Government of India to open up Insurance sector. The establishment of IRDA
in the month of April 2000 has been important development in this direction, making the end of
monopoly in the insurance sector.
WHY INSURANCE IN INDIA:

➢ Only 22% of the insurance population has been extended cover. Market penetration is low
and the potential to exploit is high.
➢ Insurance premium per capita is very low.
➢ Lack of comprehensive social system benefit and welfare means that demand for pension
products is high.
➢ Huge middle class of approximately 300 Million.
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➢ Existing insurance company score low on customer service front.
The insurance market registered growth in the Asian region even though India’s share in global
insurance is less than 0.5% (1988) as compared to USA (24.2%) and Japan (21%). Studies have
revealed that in an emerging market, as disposable income rises, Insurance premiums as a ratio
of GDP shoots up. The confederation of Indian Industry projected a growth of Life Insurance
premiums from Rs.350 Billion at present to Rs.140 Billion. The
Growth of non-life insurance premium is expected to increase from 75 billion to 375 billion. Out
of which, only 10% is tapped by the existing insurer.
Insurance even more than banking is a volume game. A very exclusive approach in view is
unlikely to provide meaningful numbers. Currently, insurance is bought for the purpose of tax-
benefits. A higher percentage of business is in the rural market. The share of rural new
Business insurance total new business is 55% in terms of policies and 47% in terms of sum
assured. However, this needs to be viewed in the light of some recent issues that have been
raised regarding as to what constitutes the rural market. Therefore, private insurers will be best
served by middle market approach, targeting the customer segments that are presently
unexploited.
How many Indians are aware that LIC has more than 60 Products and GIC has more than 180
Products? Not only there is a reduction in the premiums of Life Insurance products have long
overdue since Indian morality rate has decreased three folds in the last 50 years. There is also
scope to increase the yield on life insurance policies (presently 6%) with proper risk management
in place.
It is been debated that insurance business does not produce profit in the first five years cross
subsidization is a feature of Indian market. Even the first portfolio vote that is considered
profitable, cross subsidizes other departments. Tariffs reduction is likely to reduce profits; further
insurers have to institute proper claims management progress in order to extract efficiencies. At
present life insurance business in the country is taxed at 12.5% of the profit in financial year. The
government is soon to present a new model of taxing life insurance companies at international
rates. New entrants should be well advised to look ahead to the stage where brand strength will
be a competitive advantage and sketch their alliances accordingly. In fact, we believe that
alliance related to distribution rather than to produce or technology will prove most valuable in
the long run.
1
Banks and financial companies will emerge, as attractive distribution channel for this insurance
trend will be led by two factors, which already apply in other world market. First Banking food
insurance, fund management and other financial services companies are being to increase their
profitability and provide maximum value to their customers. Therefore, they are themselves
looking for a range of products to distribute. In other market notably Europe; this has resulted in
bank assurance. Bank entering into the insurance business in India to bank hope to maximize
expensive existing network by selling a range of products more of a loss alliance between
insurance and bank than a formal ownership. Some Indian entrants like ICICI, HDFC and
Reliance hope to ride their existing network and customer bases.
1
CHAPTER-2
REVIEW OF LITERATURE
2
REVIEW OF LITERATURE
Ramkumar D(2003) studied the role of relationship marketing in life insurance sector. In
today’s impersonal marketplace, customer satisfaction, retention and loyalty are rapidly become
the thing of the past. Relationship marketing brings them back to the forefront, providing easy-
to-apply solutions and strategies for establishing meaningful bonds with customers and turning
them into reliable, life-long partners. Relationship marketing can be defined as the process to
“identify and establish, maintain and enhance and, when necessary, terminate relationships with
customers and other stakeholders at a profit so that the objective of all parties involved are met;
and this is done by mutual exchange and fulfillment of promises”. The important objectives of
relationship marketing are to acquire new customer s, maintain and enhance existing
relationships with existing customers, reactivation of ex-customers, and handling of customer
terminations. The key objective of relationship marketing is to establish a one to one relationship
with all the customers. This may sound like a daydream few years ago; but thanks to the
technology breakthrough and technological solutions providers it is very much of reality.
Rajesham Ch(2004) revised that insurance sector has not only been playing a leading role
within the financial system in India but also has significant socio-economical function, making
inroads into the interiors of the economy and is being considered as one of the fast developing
area in the Indian financial sector too. It has also been facilitating economic development with an
objective to build an efficient, effective and a stable insurance business in India as well as a
strong base to both the needs of the real economy and socio-economic objective of the country. It
has been mobilizing long term saving through life- insurance to support economic growth and
also facilitating economic development, insurance cover to a large segment of people, while the
non-life insurance and reinsurance firms in India are main providers of risk financing for
manmade disasters and natural catastrophes. Thus, both life insurance and non-life insurance are
found playing a significant role in avoiding or facing the risk of life and business enterprises and
also aiding to certain extents for their smooth sailing. Therefore, an attempt is made in this paper
to highlight the developments of insurance sector in India in a phased manner and to examine the
reasons for the entry of private and foreign insurance players into Indian insurance market and to
present the changing scenario of insurance business in India. It is also attempted to examine the
growth of Indian insurance sector during the period of pre and post liberalization and finally to
1
suggest the strategies and challenges need to be adopted by Indian insurance sector in the light of
global scenario so as to enhance its market share.
Mehra J(2005) studied that economic growth in the emerging markets has time and again
outpaced the developed and industrialized countries. Alongside the rising importance of
emerging economics, their life insurance sectors are also drawing more attention. It’s been four
years since the life insurance sector was opened up for private players in India. The reasons that
prompted the government to bring in reform in this sector are well known. While the public
sector life insurance companies made enormous contribution in the spread of awareness about
insurance, and expanded the market, it was recognized that their reach was still limited, the range
of product offered restricted to the services to the consumer inadequate. It was also felt that the
rapid economic growth witnessed in the 90s couldn’t be sustained without a thriving insurance
sector.
Today, the private accounts for nearly 20% of the market. The market share of the private
players has to be seen in the context of this enlarged market. There has been a flurry of private
players providing a wide range of innovation products, services and customized solutions.
Emerging markets-such as China, India, Mexico, and Russia- are home to some 86% of the
world’s population. Collectively, they account for 23% of world economic output. Yet, insurance
business is underdeveloped in these markets.
In fact, India as a country is under-insured. Only 35% of the 250 million insurable population is
insured. Exploiting the growth potential of emerging insurance market- India and China are in
the spotlight. Both the countries currently attract a lot of attention due to their size, strong growth
performance and favorable regulatory changes. To begin with, India and China are the most
populous countries and both have sustained impressive economic growth in the last decade.
Between 1993 and 2003, annual real GDP growth averaged 8.9% in china and 5.9% in India.
Interestingly, both markets have gone through a similar period of nationalization of their
insurance business, although China revoked state monopoly earlier than India.
Calandro j, J flynn R (2005) studied that many insurance companies vigorously pursue top-line
growth, even though it has the potential to develop unprofitably over time. The time lag(or tail)
between when insurance is sold and when claims are paid generates risks unique to insurance
companies. Furthermore, the insurance market is both mature and efficient (i.e. its level of
2
completion is very high), which means that profitable opportunities are both rare and untenable
unless protected by competitive advantage. There currently no practical measure available ( of
which the authors are aware ) at the business unit level to evaluate insurance premium growth in
the face of the industry’s risk, impairing executives’ ability to assess segment opportunities (and
hazards), thus hampering strategies decision making. The purpose of this paper is to introduce a
practical measure developed by the authors called Underwriting Return (UWR) which aims at
helping to alleviate this situation. The paper introduces UWR which was developed during the
course and scope of the authors’ work in the insurance industry, and their research into applying
value-based management to that industry. The paper finds that UWR is a practical measure that
property and casualty executives can use at the business unit level to help quantify market
segments to grow, hold, harvest and abandon. A variety of strategies analysis tools, such as the
popular Boston Consulting Group matrix, are utilized today. In general, the application of such
tools is hampered by an imprecision of measurement but each can add a level of insight to
executive’ resource allocation options. UWR can further aid insurance executive in strategic
analysis by helping to quantify in which segments to compete, and which ones to abandon. The
paper demonstrates the utility of the measure in an example based on an actual analysis.
Anon (2005) studied all the aspects of the Indian insurance industry along with an outlook for
potential developments. The report examines the trends in industry, besides the competitive
landscape offers a brief analysis on the main players in the industry. It contains an assessment
based on PEST analysis, covering the relevant political, economic, social and technological
factors that have implications for the development of the industry. The report also evaluates the
industry within th Michael porter framework. It goes on to describe the competitive landscape
and provides a comparative financial study of the major players in the industry. Insurance
constitutes an important and increasing proportion of the gross financial savings of the household
sector in india. The private sector, in life as well as the non-life segments gained more
prominent in the life insurance sector. The factors that have driven change include: > Increasing
Gross Financial Household Savings. > Deregulation in the Indian Insurance Market. > Increase
in dependency ratio However, dearth of new products represents a major implication.
Sethi N (2005) studied the concept of banc assurance in India. Banc assurance has mostly been
a phenomenal success and , although slow to gain pace, is now taking off across Asia, especially
now that banks are starting to become more diverse financial institutions, and the concept of
3
universe banking is being accepted. In India, the signs of initial success are already there despite
the fact that it is completely new phenomenon. The factor and principles of why it is a success
elsewhere exists in India, and there is no doubt that banks are set to become a significant
distributor of insurance related products and services in the years to come.
Rao (2005) analyzed that the insurance industry has grown by 83 percent since the opening up
the sector. Remarking on the performance of the insurance industry, C S Rao, chairman,
insurance regulatory & development authority, said public sector players have not suffered with
the opening up of the sector. Insurance premium income has risen to Rs 82,415 crore (Rs 824.15
billion) in 2003-2004, against Rs 45,000 crore (Rs 450 billion) in 2000-01. Rao expects premium
income in the life insurance sector to rise further by 15-16 percent and non-life insurance
premium by 14 percent in 2005-06. The growth comes on the back of healthy demand from the
manufacturing sector.
Kannan k.v (2006) reviewed in their study that the market potential for private insurance
companies is found to be greater in the long run as most of the Indians are of the opinion that,
private insurance companies would be able to perform well in the future. The private and foreign
insurance companies have too immediate steps in appointing more number of agents and/or
advisors in addition to the employees as it has found that agents are the best channel to reach the
general public regarding selling of insurance products. The private and foreign insurance
companies have to concentrate on the factors like ‘prevention of loss’, ‘assured returns’ and
‘long term investment’. They can also focus on an insurance amount of Rs. 1-2 lakhs with
‘money back policies’. Hence, the market has potential. The private and foreign insurance
companies that are taking immediate steps can tap it.
Sasidharan Sanjeev (2006) studied that the insurance sector in India has come a full circle from
being an open competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed
over a period of almost two centuries.
Athma Prashanta(2007) reviewed that in globalization policy, insurance company face a

dynamic global business environment. The existing insurers are facing challenges from non-
4
traditional competitors who are entering into the retail market with new approaches and through
new channels. While quality of service is the main influencing factor in the finance market, in
the insurance market, product attributes are the main factors that influence the success of
insurance companies. Though, there has been growth in life insurance industry over the past few
years, comparatively, insurance penetration in India has not increased in spite of the considerable
growth potential of Indian life insurance market. With liberalization, many insurance players
have entered this field from the year 2000, and the task before them now is to identify what
factors influence in decision-making. In this context, this study assumes importance. The main
objective of the paper is to identify the factor s which the consumers take into consideration
before selecting life insurance products and determine the extent to what these factors are taken
into consideration for choosing the life insurance products. This research is carried out by
collecting primary data from 200 policyholders of Life Insurance Corporation on India through
self-structured questionnaires. The sample consists of 100 policyholders from urban area and 100
policyholders from rural area. C2 test is employed to test if there is any association is used to
find out which factor has more influence. Both, product and non-product attributes have been
found to be important in selecting a policy but they have been rated differently. Rating is
different in urban and rural areas.
Hsieh An (2008) investigated the relationship between customer perception of public relations
(PR) and customer loyalty to test for the moderating role of brand image in that relationship.
Data were collected in a survey of customers of the insurance industry in Taiwan, using a
questionnaire designed on the basis of focus-group discussions with 30 consumers. Hierarchical
regression analysis of data from 367 respondents was used to test two hypotheses. The results
show that consumers’ perception of an organization’s PR practice is an antecedent of loyalty.
The impact of public relation perception (PRP) on customer loyalty is stronger and more
significant when the brand image is favorable. The effect of PRP on customer loyalty is
negligible. This study extends previous research by examining the moderate of brand image.
Further research is indicated, to identify the key moderators of the driving force of PR in relation
to customer relationship marketing. This paper proposes an original eight-item scale for the
assessment of customer PRP activity, which can be applied in practice to measure its
effectiveness under different brand-image conditions.
5
Andreassen Tor (2008) studied the impact of customers’ perception of customer service
(bad/good) on variables that are known to drive revenue, i.e. customer satisfaction, perceived
relative attractiveness, and commitment. Data were collected through a survey among bank
customers. Two groups were sampled: customers who have experienced good or bad customer
service. The hypotheses were tested by applying structural equation modeling and running two
group analysis using the PLS and LISREL software’s. Customers that experience bad customer
service do take into account the same variables in their evaluation as do customers that
experience good customer service. They do however, put different weights on every factor in the
evaluation process. Also the strength of the relationship between the variables seems to differ.
Typically, analyses showed that customers experiencing bad customer service tend to consider
more thoroughly all aspects of the service; the relationships between the variables were stronger
and the explained variance of each construct higher, than in the group of customers experiencing
good customer service. However, the paths are not different across the groups. The paper has
only tested the model and hypothesis in one industry. Future research should test the same model
using different industries reflecting different customer involvement levels. Practical implications
from this study, service managers can learn that investing in customer service in ongoing
customer relations is “the right thing to do” as it is linked to customer equity through customers’
commitment to the firm. Second, as customer service in such relationships drives perceived
relative attractiveness, saving the bottom line by cutting back on the human side of the customer
interaction, may harm the firm’s competitive position in the marketplace.
6
3. NEED SCOPE & OBJECTIVE OF THE STUDY
NEED
Life insurance is chiefly a risk management tool, meant to offer financial protection to your
dependents in the unfortunate event of your death. But in India, as the most other developing
market, life insurance has come to present more than just risk cover. This particular study is
conducted on the topic titled “to study customer perception regarding Birla sun life insurance
company. The aim of this research study is to know about life insurance. It is done to know the
banc assurance in India. Banc assurance has mostly been a phenomenal success and, although
slow to gain pace, is now taking across Asia, especially now that banks are starting to become
more diverse financial institutions, andCHAPTER-3
the concept of universal banking is being accepted. In
EED, India,
SCOPE & OBJECTIVES OF THE STU
the signs of initial success are already there despite the fact that it is a completely new
phenomenon.
SCOPE
The study is restricted to Navi-Mumbai region only. The study also analyses the preferences
regarding different life insurance policies of Birla-sun life insurance. For this study 100
respondents of Navi-Mumbai are chosen. Now days there are lot of private companies in market
so it’s important to know what motivates the customer to buy the policy. Birla sun life is the
fastest growing private insurance company in India. It determines market share of the various
private companies in India.
OBJECTIVES
➢ To determine and analyze the Market Potential of the Birla Sun Life Insurance Company.
➢ To determine whether the customers are satisfied with the policies of the company.
➢ To know the the customer awareness regarding the Birla-sun life insurance and its products.
➢ To study and determine the competitor position in the market.
➢ To know the future plans of the people for buying the policies.
➢ Proper understanding and analysis of life insurance industry.
➢ Conduct market survey on a sample selected from the entire population and derived opinion
on that research
1
CHAPTER-4
RESEARCH METHODOLOGY
2
Research methodology
Research means a search for knowledge or gain some new knowledge and methodology can
properly refer to the theoretical analysis of the methods appropriate to a field of study or to the
body of methods and principles particular to a branch of knowledge.
Research Design : A research design is the arrangement of conditions for the collections and
analysis of data in a manner that aims to combine relevance to research purpose with economy in
procedure.
Universe
The universe of the study is Navi-Mumbai.
Sample Unit
The sample unit pertaining to the study is 100 respondents of Navi-Mumbai region.
Sample Size
The sample size of 100 served the purpose of the study.
Sample Method
The sampling method used is non-probability convenience sampling
Methods of data collection

Data collection
The word data means any raw information, which is either quantitative or qualitative in nature,
which is of practical or theoretical use. The task of data collection begins after a research
problem has been defined and research design chalked out. While deciding about the method of
data collection, the researcher should keep in mind that there are two types of data primary and
secondary.
Primary data
This is those, which are collected afresh and for the first Time, and thus happen to be original in
character. There are many ways of data collection of primary data like observation method,
interview method, through schedules, pantry Reports, distributors audit, consumer panel etc. The
Team Managers and employees of both the Department were consulted to get information about
procedure of both the online and off line share trading. But the method used by us for the
primary data collection was through questionnaires.
Questionnaire method
1
For the collection of primary data I used questionnaire method. A formal list of questions, which
are to be asked, is prepared in a questionnaire and questions are asked on those bases. There are
some merits and demerits of this method. These as under: -
Merits: -
1. Low cost even when universe is large.
2. It is free from bias of interviewer.
3. Respondents have proper time to answer.
4. Respondents who are not easily approachable can also be reachable.
5. Large samples can be made.
Secondary data
These are those data, which are not collected afresh and are used earlier also and thus they
cannot be considered as original in character. There are many ways of data collection of
secondary data like publications of the state and central government, reports prepared by
researchers, reports of various associations connected with business, Industries, banks etc. And
the method, which was used by us, was with the help of reports of the company.
Sample Size
I have met 250 people, to know about their perception regarding companies and there policies
after that I have taken 25 People they have fill up the questionnaire and given response.
LIMITATIONS OF INSURANCE
➢ Lack of awareness among the people – This is the biggest limitation found in this sector.
Most of the people are not aware about the importance and the necessity of the insurance in
their life. They are not aware how useful life insurance can be for their family members if
something happens to them.
➢ Perception of the people towards Insurance sector – People still consider insurance just as
a Tax saving device. So today also there is always a rush to buy an Insurance Policy only at
the end of the financial year like January, February and March making the other 9 months dry
for this business.
➢ Insurance does not give good returns – Still today people think that Insurance does not
give good returns. They are not aware of the modern Unit Linked Insurance Plans which are
offered by most of the Private sector players. They are still under the perception that if they
take Insurance they will get only 5-6% returns which is not true nowadays. Nowadays most
1
of the modern Unit Linked Insurance Plans gives returns which are many times more than
that of bank Fixed deposits, National saving certificate, Post office deposits and Public
provident fund.
➢ Lack of awareness about the earning opportunity in the Insurance sector – People still
today are not aware about the earning opportunity that the Insurance sector gives. After the
privatization of the insurance sector many private giants have entered the insurance sector.
These private companies in order to beat the competition and to increase their Insurance
Advisors to increase their reach to the customers are giving very high commission rates but
people are not aware of that.
➢ Increased competition – Today the competition in the Insurance sector has became very
stiff. Currently there are 14 Life Insurance companies working in India including the LIC
(life insurance Corporation of India). Today each and every company is trying to increase
their Insurance Advisors so that they can increase their reach in the market. This situation has
created a scenario in which to recruit Life insurance Advisors and to sell life Insurance Policy
has became very- very difficult.
2
CHAPTER-5
DATA ANALYSIS AND INTERPRETATION
2
DATA ANALYSIS AND INTERPRETATION
1.Which Birla life plan do you have?

Table 5.1 : Type Of Plan
Types of plan No of respondent Percentage
Life insurance plan 68 68%

Health insurance plan 10 10%
Retirement plan 22 22%
Total 100 100%
Figure. 5.1 : Type Of Plan
Analysis & Interpretation:

The objective of first question was people having an account with BSLI are having which type of
plan. In the survey of 100 people it was found that 68% have life insurance plan, 22% have
retirement plan and 10% were having health insurance plan.
2.Are you satisfied with the plan you have?

Table 5.2 : Satisfaction With The Plan
1
People satisfied with plan No of respondent Percentage
Yes 72 72%
No 28 28%
Total 100 100%
Figure 5.2 : Satisfaction With The Plan

The objective of second question was to find out that how many people are satisfied with the
plan. In the survey of hundred people it was found that 72% people are satisfied with the plan
while 28% people are not satisfied with the plan.
3.Are you satisfied with the service provided by the company about new schemes and plans
Table 5.3 : Satisfaction With The Services Of The Company
Are people satisfied with service No of respondent Percentage
1
provided by company
Yes 82 82%
No 18 18%
Total 100 100%
Figure 5.3 : Satisfaction With The Services Of The Company

The objective of third question was to find out whether people are satisfied with the services
provided by the company. In the survey it was found that 82% people are satisfied with the
services provided by the company while 18% people are not satisfied with the services.
1
4.Are you interested to make more investments in BSLI?
Table 5.4 : People Want To More Investment In Bsli
People want to more investment in BSLI No of respondent Percentage
Yes 67 67%
No 33 33%
Total 100 100%
Figure 5.4 : People Want To More Investment In Bsli

The objective of fourth question was to find out that do people want to invest more money. It
was found that 67% people want to invest more money while 33% people don’t want to invest
more money.
5.Number of people have other insurance plan apart from BSLI
1
Table 5.5 : People Have Other Insurance Plan Apart From Bsli
People have other insurance No. of people Percentage
plan apart from BSLI
Yes 78 78%
No 22 22%
Total 100 100%
Figure 5.5 : People Have Other Insurance Plan Apart From Bsli

The objective of fifth question was whether people have insurance plan apart from BSLI. In the
survey it was found that 78% people have insurance plan other than BSLI while 22% don’t have
any other plan.
6.Percentage share of different companies in insurance sector.

Table 5.6 : Share of different companies
1
Name of different companies Percentage
Life insurance company 60%
Birla Sun Life Insurance 9%

Bajaj Aliyanz 11%
ICICI 8%
Other 12%
Total 100%
Figure 5.6 : Share of different companies
Analysis &
Interpretation:
The objective of this study is to find out the percentage share of different companies in the
insurance sector. it was found that 60% is occupied by LIC,9% by BSLI,11% by Bajaj
aliyanz,8% by ICICI and 12% by other companies.
7.Market share of private companies.

Table 5.7 : Market share of private companies
List of companies Percentage
ICICI pru 22.1%
1
Bajaj Alliaz 13.8%
SBI 9.8%
HDFC standard 7.7%
Birla sun life insurance 7.0%
Reliance life 8.0%
Max new York 8.0%
Tata AIG 7.0%
Aviva 3.1%
Kotak Mahindra 3.6%
Met life 5.3%
ING vysya 2.1%
Shriram life 1.1%
Other 1.1%
Total 100%
Figure 5.7 : Market share of private companies

The objective of this study is to find out the market share of different companies in the insurance
sector. It was found that icici pru is having the maximum share that is 22.1%.
2
CHAPTER-6
1
FINDINGS OF THE STUDY
FINDINGS
➢ To be successful in marketing of insurance products, the entire business scenario has to be

taken into account.
➢ During the study to be found that majority of people are aware of life insurance sector.
➢ During the survey it was observed that major source of information for consumer are
television and newspaper and least preference are given to magazines, agents and friends.
➢ Attractive schemes and brand image are the most important factor that influences the buying
behavior of the consumers.
1
➢ Majority of respondents will shift to any other insurance company.
➢ People are not satisfied with the opted insurance. It was found that the reason for the
dissatisfaction of consumer is high premium, delay in claim settlement and poor after sale
service.
➢ So to achieve a greater insurance penetration, insurance sector companies have to create a
more vibrant and competitive industry, with greater efficiency, choice of products and value
for customers.
CHAPTER-7
1
CONCLUSION
3
CONCLUSION
The market potential for private insurance companies is found to be greater in the long run as
most of the Indians are of the opinion that, private insurance companies would be able to
perform well in the future. The private and foreign insurance companies have to take immediate
steps in appointing more number of agents and/or advisors in addition to the employees as it has
been found out that agents are the best channel to reach the general public regarding selling of
insurance products. The private and foreign insurance companies have to concentrate on the
factors like 'Prevention of Loss', 'Assured Returns' and 'Long term Investment'. They can also
focus on an insurance amount of Rs. 1 – 2 lakhs with 'money back policies'. Hence, the market
has potential. The private and foreign insurance companies that are taking immediate steps can
tap it easily & rapidly.
1
CHAPTER-8
RECOMMENDATIONS
3
RECOMMENDATIONS
1) Even though most of the policy holders are satisfied with policies, plans they have but some
new attractive insurance plans should be introduce to bind them not to switch over to other
companies insurance plans.
2) The company should find out the no. of people who are not having any of the insurance plans
through an intensive market research and motivate them to get insured.
3) Leveraging technology to service customers quickly, efficiently and conveniently.
4) Developing and implementing superior risk management and investment strategies to offer
sustainable and stable returns to our policyholders.
5) Company should target each and every class of the society
6) Company should provide full information to the customers before targeting so they can take
interest.
1
BIBLIOGRAPHY
BIBLIOGRAPHY
3
Books :
• Kothari C.R. (1990) Research Methodology : Method and Techniques, Wishva
Parkashan, New Delhi. PP115-117
• Bodie. Z, Kane. A & Marcus. J : Essentials of Investments PP242-243
Websites :
• http://www.economywatch.com/indianeconomy/indian-insurance-sector.html
• www.birlasunlife.com/birlasunlife/insurance/bsli.../index5.aspx
• http://www.indianmba.com/Occasional_Papers/OP85/op85.html
• http://www.banknetindia.com/finance/insure2011.htm
• http://www.financialexpress.com/news/the-indian-insurance-sector-ii/181428/
Journals :
• Lect. D.ramkumar(2003), “Relationship Marketing – The new tantra for life insurance
sector”. Department Of Management Studies, N.M.S.S. Vallaichamy Nadir College,
Nagamalai, Madurai – 625019 available at http://www.google.co.in/interstitial?
url=http://www.indiaschools.com/marketing_029.htm last accessed on 07-08-2009.
• Dr. Ch.rajesham (2004), “changing scenario of india insurance sector”, department of
commerce & Business Management, University P G college, Kakatiya University
Khammam, Andhra Pradesh available at
http://www.insuranceinstituteofindia.com/insuranceinst/publication/uploads/journal-jan-
jun-04/chapter10..pdf last accessed on 14-08-2009
• J.Mehra (2005), “innovations in life insurance industry”, the financial express, new delhi
available at http://www.financialexpress.com/news/innovations-in-life-insurance-industry
last accessed on 15-08-2009.
5
3
ANNEXURE
1
Questionnaire
Name:............................... Age:……………..
Occupation:…………………..
Ques.1 Which Birla Sun Life Scheme do you have?
Health 
Retirement 
Life 
Health 
Retirement 
Life 
Ques.2 Are you satisfied with the Insurance plan you have?
(a) Yes  (b) No 
Ques.3 what attract you towards Birla Sun Life Plans?
(a)
(b)
(c)
(d)
Ques.4 Are you satisfied with the services provided by the company
Regarding new plans and schemes?
(a) Yes  (b) No 
Ques.5 Are you interested to make more investments in Birla Sun Life ?
(a) Yes  (b) No 
Ques.6 Have you any other Insurance Plan apart from Birla Sun Life?
(a) Yes  (b) No 
Ques.7 If yes, then of which Life Insurance Company?
(a) LIC  (b) Bajaj Allianz 
(c) Birla Sunlife  (d) Reliance 
(e) Others 
1
Ques.8 If you get any attractive plan than are you ready to switch over?
(a) Yes  (b) No 
Ques.9 If you get any attractive plan than are you ready to switch over?
(a) Yes  (b) No 
Suggestions:
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

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CHAPTER-1

About Birla Sun Life Insurance

About the Aditya Birla Group

About Sun Life Financial Inc.

1.2 INTRODUCTION TO THE PROJECT

1. House/office/factory or any moveable object destroyed in life - Fire insurance

Contribution of life insurance in development of economy

Level Term Assurance with return of premium

Level Term Assurance without return of premium

Level Term Assurance - Single premium:

The key features of the plan are:

The key features of the plan are:

Rider, Accident & Disability Benefit Rider.

➢ Smart Kid regular premium

Why plan for retirement?

Group Gratuity Plan:

Group Superannuation Plan:

BSLI offers 2 specially designed rural plans.

BSLI - Regular Premium:

WHY INSURANCE IN INDIA:

Athma Prashanta(2007) reviewed that in globalization policy, insurance company face a

Methods of data collection

1.Which Birla life plan do you have?

Life insurance plan 68 68%

Figure. 5.1 : Type Of Plan

Analysis & Interpretation:

2.Are you satisfied with the plan you have?

Figure 5.2 : Satisfaction With The Plan

Analysis & Interpretation:

Total 100 100%

Figure 5.3 : Satisfaction With The Services Of The Company

Analysis & Interpretation:

Total 100 100%

Figure 5.4 : People Want To More Investment In Bsli

Analysis & Interpretation:

5.Number of people have other insurance plan apart from BSLI

Total 100 100%

Analysis & Interpretation:

6.Percentage share of different companies in insurance sector.

Life insurance company 60%

Birla Sun Life Insurance 9%

Figure 5.6 : Share of different companies

7.Market share of private companies.

Figure 5.7 : Market share of private companies

Analysis & Interpretation:

➢ To be successful in marketing of insurance products, the entire business scenario has to be

3) Leveraging technology to service customers quickly, efficiently and conveniently.

5) Company should target each and every class of the society

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