Professional Documents
Culture Documents
Full Final Project
Full Final Project
INSURANCE
A simple example will make the meaning of insurance easy to understand. A biker is
always subjected to the risk of head injury. But it is not certain that the accident
causing him the head injury would definitely occur. Still, people riding bikes cover
their heads with helmets. This helmet in such cases acts as insurance by protecting
him/her from any possible danger. The price paid was the possible inconvenience or
act of wearing the helmet; this i.e. equivalent to the insurance premiums paid.
Life insurance
Life insurance or life assurance is a contract between the policy owner and
the insurer, where the insurer agrees to pay a sum of money upon the occurrence of
the insured individual's or individuals' death or other event, such as terminal illness or
critical illness. In return, the policy owner agrees to pay a stipulated amount called a
premium at regular intervals or in lump sums.
1
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 Mr. Rajan buys a policy on his own life, he is
both the owner and the insured. But if Mrs. Anita, his wife, buys a policy on Rajan’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
2
the policy prices with an intent to recover claims to be paid and administrative costs,
and to make a profit.
Working of Insurance
Reliance Life Insurance is a part of the Reliance group. It is one of the partners of
Reliance Capital Ltd which is a Anil Dhirubhai Ambani Group. Reliance Capital is
one India's most dominant private sector financial services companies. They offer
insurance products which help you with savings as well as give you protection.
Canara HSBC Life is a joint venture of Canara Bank, HSBC Insurance (Asia pacific)
& Oriental bank of Commerce. The Company got its approval from IRDA in June
2008 and from that commencing its business. They have more than 4100 branches all
over India.
3
DLF pramerica Life Insurance Company Ltd. is a joint venture between DLF
Limited & Prudential International Insurance Holdings Limited. DLF Pramerica
believes in delivering a secure & enrich life to there customers.
MetLife One of the fastest growing insurance company in India is MetLife. The
company started its operations in between 2000-2001. They have a range of various
products to offer.
ICICI Prudential ICICI Bank with Prudential plc, both well known & strong
financial institutions came together in December 2000 to form an insurance company
- ICICI Prudential Life Insurance.
Max New York Life Max India’s leading multi business corporation & New York
Life joined there hands in 2000.The company started there operations in 2001. The
company is involved in Life & health products.
Bajaj Allianz Bajaj who are into iron & steel, finance, insurance & etc and Allianz
who provides financial services when came together they formed Bajaj Allianz Life
Insurance Company.
Bharti AXA Bharti AXA Life Insurance is a joint venture between Bharti & AXA.
The company started its functionality in December 2006 and they always believe to
be a strong financial institute.
HDFC Standard Life HDFC Standard Life Insurance is a joint venture between
Housing Development Finance Corporation Limited & a Group of Standard Life
Plc.The Company started commencing its business in December 2000.
AEGON Religare AEGON Religare Life Insurance Company Ltd is a joint venture
with AEGON, Religare and Bennett, Coleman & Company a part of Times Group.
AEGON Religare Life Insurance Company was launched in July 2008.
Kotak Mahindra A joint venture of Kotak Mahindra group & Old Mutual plc is
known as Kotak Mahindra Old Mutual Funds. The Company started commencing its
business in 2001. The company aim is to help customers in making there financial
decisions.
4
Future Generali Life Future Generali is a joint venture between Future Group of
India & Italy based Generali Group. Future Generali in India is into both Life & Non
Life businesses in India. The company wants to provide a financial security to all.
SBI Life SBI Life Insurance Company Limited is a joint venture between State
Bank of India and BNP Paribas Assurance. It is present in more than 41 countries
across the world. SBI Life offers a variety of plans in life insurance and pension.
Shriram Life Shriram Life Insurance Company is a joint venture between Shriram
Group and Sanlam Group. Shriram Group is one of India’s most esteemed financial
services & Sanlam Group is one of the largest life insurance providers of South
Africa.
TATA AIG The TATA Group and American International Group Inc together
formed Tata AIG Life Insurance Co. Ltd.Tata Group holds 74% stake in the insurance
venture with AIG holding the balance 26%. They started their operations in April
2001.
Aviva Aviva, one of UK's largest insurance company and world's 5th largest
insurance group. It was one of the first international insurance company to set up its
office in India in the year 1995. They introduced the concept of banc assurance in
India.
IDBI Fortis IDBI Fortis Life Insurance Co. Ltd is a joint venture between three
financial institutes; they are IDBI Bank, Federal Bank and Fortis. They introduced
there plans in March 2008. IDBI owns 48% equity while Federal Bank and Fortis own
26% equity each.
Sahara The Sahara Pariwar stepped into the insurance business by launching Sahara
India Life Insurance Co. Ltd. They received the IRDA license in February 2004 and
started their operations in October 2004. They are the first solely owned private sector
insurance company in India.
ING VYSYA ING Life was established in 2001 as a joint venture between ING
Insurance International B.V. (INGI), ING Vysya Bank Limited and GMR Industries
Limited. At present, INGI, Exide Industries Limited, Ambuja Cement Ltd, Enam
Group are the joint venture partners.
5
Star Union Star Union Dai-ichi Life Insurance Co.Ltd. is formed by three various
financial institutions. Bank of India, Union Bank of India and Dai-ichi Mutual Life
Insurance Company This firm was incorporated in the year 2007 and got their IRDA
license on the 26th Dec 2008.
6
GENESIS
Insurance, in its modern form, first arrived in India through a British company
called the Oriental Life Insurance Company in 1818, followed by the Madras
Equitable Life Insurance Society in 1829 and the Bombay Assurance Company in
1870. They insured the lives of Europeans living in India. The first company that sold
policies to Indians was the Bombay Mutual Life Assurance Society starting in 1871.
The first general insurance company, Triton Insurance Company Limited, was
established in 1850. For the next hundred years, both life and non-life insurance were
confined mostly to the wealthy living in large metropolitan areas.
7
There were several reasons behind the nationalization decision:
In 2006, the Indian insurance market ranked 19th globally and was the 5th largest
in Asia.
The insurance industry in India has come a long way since the time when
businesses were tightly regulated and concentrated in the hands of a few public sector
insurers. Following the passage of the Insurance Regulatory and Development
Authority Act in 1999, India abandoned public sector exclusivity in the insurance
industry in favour of market-driven competition. This shift has brought about major
changes to the industry. The inauguration of a new era of insurance development has
seen the entry of international insurers, the proliferation of innovative products and
distribution channels, and the raising of supervisory standards. By mid-2004, the
number of insurers in India had been augmented by the entry of new private sector
players to a total of 28, up from five before liberalization. A range of new products
had been launched to cater to different segments of the market, while traditional
agents were supplemented by other channels including the Internet and bank
branches. These developments were instrumental in propelling business growth, in
real terms, of 19% in life premiums and 11.1% in non-life premiums between 1999
and 2006.
8
There are good reasons to expect that the growth momentum can be sustained. In
particular, there is huge untapped potential in various segments of the market. While
the nation is heavily exposed to natural catastrophes, insurance to mitigate the
negative financial consequences of these adverse events is underdeveloped. The same
is true for both pension and health insurance, where insurers can play a critical role in
bridging demand and supply gaps. Major changes in both national economic policies
and insurance regulations will highlight the prospects of these segments going
forward.
Last one decade of reforms in India have started yielding the results in the Indian
economy. The Government's resolve to push the reforms measures further, less
bureaucratic hurdles, investors' friendly business environment all put together have
given tremendous boost to the industries in terms of FDI and investments from FIIs.
The service industry in India has achieved a phenomenal growth in the recent past
and among them, Insurance is one sector, which has witnessed high decibel growth
thanks to the investor friendly regulator in the name of Insurance Regulatory
Development Authority (IRDA). The growth the market has achieved in terms of 18-
20% in life insurance and 15-17% in non-life insurance stands testimony to that.
Looking back at the history, the ride had not been so smooth to the public sector
players like LIC, GIC and its subsidiaries. For a long time, the insurance policies are
not bought but sold in the country because of so many odd reasons like low awareness
level, aversion towards the products as such, superstitious beliefs and less diverse
product portfolio. The monolith in the life insurance sector, Life Insurance
Corporation of India had been basking in its past glory and enjoying the monopolistic
situation in the market.
Even the General Insurers like GIC and its subsidiaries were able to reach the
people with very few products out of many products in their kitty offering little or no
options to the customers. In 1956, when the Government of India nationalized the
business of life insurance, there were 245 private insurance companies operating in
the country. And sixteen years later, when the same happened to General insurance,
there were 106. But the seeds were sown as far back as 1993, when the Malhotra
Committee headed by former Finance Secretary and Ex-RBI Governor R.N.Malhotra
9
was created to recommend the directions the Indian industry should take. By 1994,
the Committee was ready with its report.
10
COMPANY PROFILE
Karvy has a professional management team and ranks among the best in
technology, operations, and more importantly, in research of various industrial
segments.
Karvy computer share limited is India’s largest registrar and transfer agent
with a client base of nearly 500 blue chips corporate, managing over 2 crores
accounts. Karvy stock brokers limited, member of national stock exchange of India
and the Bombay stock exchange, rank among the top five stock brokers in India with
over six lakhs active account it ranks among the top five depositary participants in
India, registered with NSDL and CSDL, karvy commorade, member of NCDEX and
MCX ranks among the top three commodities brokers in the country. A Karvy
insurance broker is registered as a broker with IRDA and ranks among the top five
insurance agent in the country. Registered with AMFI as a corporate agent, karvy is
also among top mutual fund mobilize with over Rs 5000 crores under management.
Karvy realty services, which started in 2006, have quickly established itself as a
broker, who adds value in the realty sector. Karvy global offer niche off to off shoring
services to U.S clients.
11
Karvy has 575 offices in 375 locations across India and overseas at Dubai and New
York. Over 9000 highly qualified people staff karvy.
Quality Policy
To achieve and retain leadership, Karvy shall aim for complete customer satisfaction,
by combining its human and technological resources, to provide superior quality
financial services. In the process, Karvy will strive to exceed Customer's expectations.
Quality Objectives
• Build in-house processes that will ensure transparent and harmonious relationships
with its clients and investors to provide high quality of services.
• Establish a proper relationship with its investor service agents and vendors that will
help in keeping up its commitments to the customers.
• Provide high quality of work life for all its employees and equip them with adequate
knowledge & skills so as to respond to customer's needs.
• Continue to uphold the values of honesty & integrity and strive to establish
unparalleled standards in business ethics.
12
Board of Directors:
Mr. C. Parthasarathy
Mr. M. Yugandhar
Managing Director
Mr. M S. Ramakrishna
Director
Director
CEO
13
Karvy Reality & Services (India) Limited
IMPORTANT CLINTELE
Reliance Industries
IDBI
Hindustan Lever
Marico Industries
Patni Computers
Morgan Stanley
ACHIEVEMENTS
A Category-I-Merchant banker
14
Among the top 5 Stock Brokers
PRODUCTS PROFILE
1. Stock Broking
2. Mutual Fund Services
3. De-mat account opening
4. Depositary participants Services(TIN/PAN)
5. Financial Product Services(investment)
6. Corporate finance and Merchant banking
7. Insurance Broking
Life
Non life
8. IT Enabled Services
9. Registrars and Transfer agents.
15
OBJECTIVES OF THE STUDY
Primary objective:
Secondary objectives:
16
NEED OF THE STUDY
This study is widely useful to the company because it will help the company in taking
major decisions. This study would be beneficial for the dealer also.
To find the factors which influence the customer response towards LIC.
17
SCOPE OF THE STUDY
The liberalization of the Indian insurance sector has been the subject of much
heated debate for some years. Despite innumerable delays the sector has been finally
opened to the private players. The key issue and possible trends are as follows:
• The threat of new players taking over the market has been overplayed.
• Nationalized players will continue to hold strong market share positions, but
they will be enough business for new products, better packaging and improved
customer service.
• Both new and existing players must explore new distribution and marketing
channels.
• A middle market approach tapping segments and niches thar are currently
under served will profitable for new entrants.
18
LIMITATIONS OF THE STUDY
19
BIRLA SUN LIFE INSURANCE COMPANY LIMITED
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.
The Aditya Birla Group has a turnover of close to Rs. 119000 crores, with a
market capitalization of Rs. 133875 crores (as on 31st March 2008). It has over
100,000 employees across all its units worldwide. It is led by its Chairman - Mr.
Kumar Mangalam Birla. Some of its key companies are Hindalco, Grasim and Aditya
Birla Nuvo.
It operates in all the important markets of the world like Canada, the United
States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India,
China and Bermuda.
Sun Life Financial Inc. has assets under management of over US$404.7 billion
(as on 31st March, 2008). It is a leading performer in the life insurance market in
Canada.
Birla Sun Life Insurance (BSLI) has been operating for 9 years. It 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. BSLI has covered
20
more than 2 million lives since it commenced operations. And its customer base is is
spread across more than 1500 towns and cities in India. The company has a capital
base of Rs. 1274.5 crores as on 31st March 2008.
The growth and development of the life insurance industry in India and
currently ranks amongst the top 5 private life insurance companies in the country.
Known for its innovation and creating industry benchmarks, BSLI has several
firsts to its credit. It was the first Indian Insurance Company to introduce “Free Look
Period” and the same was made mandatory by IRDA for all other life insurance
companies. Additionally, BSLI pioneered the launch of Unit Linked Life Insurance
plans amongst the private players in India. To establish credibility and further
transparency, BSLI also enjoys the prestige to be the originator of practice to disclose
portfolio on monthly basis. These category development initiatives have helped BSLI
be closer to its policy holders’ expectations, which gets further accentuated by the
complete bouquet of insurance products (viz. pure term plan, life stage products,
health plan and retirement plan) that the company offers.
Add to this, the extensive reach through its network of 600 branches and
1,75,000 empanelled advisors. This impressive combination of domain expertise,
product range, reach and ears on ground, helped BSLI cover more than 2 million lives
since it commenced operations and establish a customer base spread across more than
1500 towns and cities in India. To ensure that our customers have an impeccable
experience, BSLI has ensured that it has lowest outstanding claims ratio of 0.00% for
FY 2008-09. Additionally, BSLI has the best Turn around Time according to LOMA
on all claims Parameters. Such services are well supported by sound financials that
the Company has. The AUM of BSLI stood at Rs. 8165 crores as on February 28,
2009, while as on March 31, 2009, the company has a robust capital base of Rs. 2000
crores.
ACHIEVEMENTS OF BSLI
21
1st to disclose portfolio on a monthly basis.
1st to introduce “Free Look Period” and the same was made mandatory by
IRDA for all other Life Insurance Companies.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term
contracts and during the currency of the policy it requires a variety of services need
was felt in the later years to expand the operations and place a branch office at each
district headquarter. Re-organization of LIC took place and large numbers of new
branch offices were opened. As a result of re-organization servicing functions were
transferred to the branches, and branches were made accounting units. It worked
wonders with the performance of the corporation. It may be seen that from about
200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in
the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of
new business. But with re-organization happening in the early eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional
offices, 7 zonal offices and the corporate office. LIC’s Wide Area Network covers
100 divisional offices and connects all the branches through a Metro Area Network.
LIC has tied up with some Banks and Service providers to offer on-line premium
collection facility in selected cities. LIC’s ECS and ATM premium payment facility is
an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info
Centre have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai,
Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of
providing easy access to its policyholders, LIC has launched its SATELLITE
SAMPARK offices. The satellite offices are smaller, leaner and closer to the
customer. The digitalized records of the satellite offices will facilitate anywhere
servicing and many other conveniences in the future.
22
LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past
records.
LIC has issued over one crore policies during the current year. It has crossed
milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy
growth rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business.
Following are the Life Insurance plans that Birla Sun life Insurance Company
Ltd.
1. Birla Sun Life Insurance Term Plan - This plan can take care of your financial
commitments of yours towards your family by providing large cover at low cost.
Minimum age of entry for this plan is 18-55 and maximum maturity age is 70 years.
2. Birla Sun Life Insurance Premium Back Term Plan - This is a low cost life
cover promises you to refund the entire premium on maturity or death. Two options
are also there to choose 100% premium back or 125% premium back. Maximum term
period for this plan is 20 years.
3. Birla Sun Life Insurance Guaranteed Bachat Plan - It’s an non participating
endowment plan offers you guaranteed returns and chance to earn survival benefit
from the 3rd year onwards. You can withdraw this benefit each tear or can use it as to
pay the premium dues.
4. Birla Sun Life Insurance Money Back Plus Plan - This is also a non-
participating endowment plan, which gives you maturity and survival both benefits.
One remarkable point is that on every policy anniversary it increases your cover by an
equal amount of your base premium.
23
5. Birla Sun Life Insurance Gold-Plus II - It’s an investment plan offering nine-
funding option to choose and 100% equity fund option also. Free unlimited switches
are given to you to manage your investments. This plan offers good liquidity to you.
6. Birla Sun life insurance Platinum Plus - It is a unit linked, non participating
insurance plan. In this plan, the investment risk is borne by the policyholder but not if
this policy is detained till maturity.
7. Birla Sun Life Insurance Saral Jeevan Plan - In today’s fast life it’s really easy
to buy an insurance plan, which you immediately can purchase just by providing three
health statements to the company. BSLI saral Jeevan is the best option to go for.
8. Birla Sun Life Insurance Supreme-Life - It’s a unit linked non-participating plan
providing 8-fund options to choose. It gives a choice of two death benefits.
9. Birla Sun Life Insurance Dream Plan - It’s a unit-linked policy, which provides
you guaranteed returns, 0% allocation charges, and option to double or triple the
guaranteed maturity.
10. Birla Sun Life Insurance Classic Life Premier - It will give you guaranteed
additions in the form of guaranteed units and a good choice of 8 investment funds are
also there. You are free to choose the term period of 10, 20, 30 or whole life.
11. Birla Sun Life Insurance Simply Life - It ensures a lifetime of tax-free
investments to fulfill the needs of your dear ones. It’s a market related plan provides
you a good death benefit amount.
12. Birla Sun Life Insurance Prime Life Premier - It’s a single time investment
with top up options. It keeps you hassle free and provides you guaranteed returns at
regular intervals.
13. Birla Sun Life Insurance Prime Life - It is a single premium policy gives you
the benefit of life insurance and investments as well. It’s a non-participating ULIP
policy.
24
14. Birla Sun Life Insurance Flexi Cash Flow - For this policy you can pay lump
sum premium payment at regular intervals. It will give you 3% guaranteed returns on
net policy charges.
15. Birla Sun Life Insurance Flexi Save Plus - This plan will give you the choices
of 3 fund options, maturity ages & guaranteed returns of 3%.
16. Birla Sun Life Insurance Flexi Life Line - This would provide you a life long
cover till 100 years of age and will give you the option of tax-free partial withdrawals.
17. Birla Sun Life Insurance Single Premium Bond - This plan gives you the
opportunity to make one time investment with no medical tests and will also gives
you the facility of high entry age. It’s a short term investment plan provides you the
option of 5 years or 10 years term period.
18. Birla Sun Life Insurance Freedom 58 - It’s a non- participating ulip plan. It
helps you accumulate your premiums and the investment return there of into a corpus
of your retirement.
19. Birla Sun Life Insurance Flexi Secure Life Retirement Plan II - This will
provide you the option to take a life cover or not. You can choose your retirement age
yourself whether you want to propone/postpone it.
20. Birla Sun Life Insurance Children's Dream Plan - It’s a unit-linked policy,
which provides you guaranteed returns, 0% allocation charges, and option to double
or triple the guaranteed maturity.
25
Various Plans offered by LIC are as follows:
5. The Endowment Assurance Policy: This policy has a provisions for the family of
the Life Assured in event of his early death and also assures a lump sum at a desired
age.
26
CHILDREN PLANS
1. Jeevan Anurag: Is plan designed for the children educational requirements. This
plan can be taken on the parent’s life. The basic sum assured is given immediately on
the death of the life assured during the term of the policy.
2. Jeevan Kishore: Is a plan which can be availed by the parent or grand parents of
the children. It is an endowment assurance plan for children of less than 12 years of
age.
4. Komal Jeevan: Is a Money Back Plan which can be bought by the parent or grand
parent for their child from the age of 0-10years. This plan gives financial protection
against death during the duration of the plan with periodic payments on survival at
specified durations.
5. Child Future Plan: A policy where the future needs like education, marriage and
other requirements are taken care of. This plan provides a benefit which not only
takes care of the risk cover of the child during the policy but also after 7 years of the
policy being expired.
6. Child Career Plan: A plan to meet the educational and other needs of the child. It
provides the risk cover on the life of child during the policy term as well as 7 years
after the policy has expired. There are also Survival benefits given to the life assured
at the end of a specific duration.
7. Child Fortune Plan: Is a unit linked plan which offers long term capital
appreciation.
27
8. Marriage Endowment or Educational Annuity Plan: This is an Endowment
Assurance plan that provides for benefits on or from the selected maturity date to
meet the Marriage/Educational expenses of the named child.
3. Money Back 25 years: Is the same as the above plan only in this plan the 40%
accrued bonus is payable at the 25th year.
PENSION PLANS
1. New Jeevan Dhara - I: is a Deferred Annuity plans that allows the policyholder
to make provision for regular income after the selected term.
4. Jeevan Akshay - VI: By paying a lump sum amount this immediate annuity plan
can be bought.
28
UNIT PLANS
1. Child Fortune Plus: Is a plan for children and to meet their educational needs. It’s
a unit linked plan with long term capital appreciation.
2. Fortune Plus : It is a unit linked assurance plan where premium payment term
(PPT) is 5 years and the premium payable in the first year will be 50% of total
premium payable under the policy.
3. Market Plus: Is a unit linked pension plan where after a specific period the
pension is paid.
4. Money Plus - I: Is a unit linked Endowment plan which has investment plus
insurance during the term and you can pay regular premiums.
5. Profit Plus : It is a unit linked Endowment plan where the premium payment term
(PPT) is limited to single lump sum, or uniformly over 3, 4 or 5 years.
2. Jeevan Tarang: This is a with-profits whole of life plan which provides for annual
survival benefit at a rate of 5½ % of the Sum Assured after the chosen Accumulation
Period.
3. The Whole Life Policy: Is a plan mainly to provide for payment of sum assured
plus bonuses on the death of the policyholder.
29
GOLDEN JUBLIEE PLAN
New Bima Gold: Where the premiums are paid back during the policy term in
installments, besides that life insurance cover is given during the also at the extended
term of the plan.
(1) Birla Sun life insurance Platinum plus - It is a unit linked, non
participating insurance plan. In this plan, the investment risk is borne by the
policyholder but not if this policy is detained till maturity.
Policy parameters
You can pay your policy premium annually, half-yearly, quarterly or monthly, subject
to a minimum installment premium of:
30
Risk profile
Maturity Benefit
On maturity, your Fund Value will be paid to you. In addition, we will pay an amount
equal to:
Death Benefit
In the unfortunate event of the death of the life insured prior to the maturity date of
the policy, we will pay to the nominee the greater of (a) the Fund Value or (b) the
Sum Assured reduced for partial withdrawals as follows:
Before the life insured attains the age of 60, the Sum Assured payable on
death is reduced by partial withdrawals made in the preceding two years.
Once the life insured attains the age of 60, the Sum Assured payable on
death is reduced by all partial withdrawals made from age 58 onwards.
Partial withdraw
Policy surrender
After 3 policy years and you will get 100% fund value at that time.
31
(2) Birla Sun Life Insurance children’s Dream Plan:
Policy parameters
Guaranteed
Equals all premiums paid, less charges and guaranteed maturity
Fund Value
benefit(s), accumulated at 3% per annum
Partial
Allowed after 3 complete policy years
Withdrawals
Investment
Protector, Builder, Enhancer
Funds
Death benefit
32
The sum assured is paid to the nominee upon the death of the life insured (parent)
The new life insured is the child and new owner is appointed as per your wishes.
The policy is continued as usual except.
Only the policy administration charge and fund management charge continue, and
BSLI will start paying the Maturity Continuation Benefit on a monthly basis until the
policy matures.
In case of death of the new life insured (child) prior to the end of the Term, higher of
105% of the Fund Value or the Guaranteed Fund Value will be paid and the policy
will be terminated.
Charges of policy
Mortality charges
33
(3) Birla Sun Life Insurance Saral Jeevan Plan:
The saral jeevan plan provides the dual benefit of protection and investment. So it is
the ideal policy if you want to secure your life and build wealth at the same time.
Policy parameters
Maturity Benefit
Maturity benefit will be sum assured plus fund value at the end of maturity time.
Death Benefit
Your nominee will receive both sum assured and fund value in the unfortunate event
of death.
Investment Funds
• Protector
• Builder
• Enhancer
Charges of Policy
• Premium Allocation Charge- Nil (This means all of your policy premium
will be invested in the investment funds of your choice).
• Fund Management Charge
• Mortality charges
• Surrender charges etc.
34
(4) Birla Sun Life Universal Health Plan:
The universal health plan is in addition to the benefit amount payable under
each health benefit. This unique benefit helps you and your family with out of pocket
health related expenses.
Policy parameters
18 years – 65 years
Entry Ages
Term 3 years
Benefits
35
Tax benefit
The premium paid by you up to 15000 (Rs.20000 for senior citizens) p.a. to
insure yourself and/or your family, is eligible for tax benefit under section 80D of
the income Tax Act, 1961, which is subject to amendments from to time.
Death/Maturity benefit
This plan has no death benefit or maturity benefit. Furthermore, this plan
provides for no cash surrender value nor any policy loans.
Policy parameters
18 years – 80 years
Entry Ages
Benefits
In the unfortunate event of death of the policyholder the nominee will receive the
higher of:
75% of the base premium and all renewal base premiums paid. OR the surrender
value at the time plus all accumulated survival benefits.
36
Tax benefits
Partially withdraw
STRENGTH:
WEAKNESS:
OPPORTUNITY:
Insurance market is very big, where company can expand its business
easily.
It has many ULIP plans so it can grow in near future.
37
THREATS:
‘OLD HABITS DIE HARD’: Its still difficult task to win the confidence of
public towards private company.
The company is facing major threats from LIC etc. -which is
an government company.
Plans for all income groups are not available which can create adverse
effect later on the market share of the company.
Features
Maturity benefits
Accident
38
Accident benefit equivalent to basic sum assured would be available by paying
appropriate additional premiums in that behalf. An amount equivalent to Sum Assured
become payable immediately.
Plan Details: This plan is appropriate for employees seeking life cover through Salary
Savings Schemes.
Eligibility:
Term 10 35
In case of term rider, minimum and maximum age of entry will be 18 and 50 years
respectively. Further minimum sum assured will be Rs.1 lakh.
Premium
Minimum premium: Rs 250 per month for entry age up to 49 years and Rs.400 per
month for entry age 50 years and above. The premium shall be in multiple of Rs.50
per month.
Premium Mode
Yearly, Half yearly, Quarterly and Monthly under Salary Saving Scheme.
Survival Benefits
39
The sum payable at maturity however differs for different entry ages and terms. On
Maturity the individual will receive maturity sum assured, plus Loyalty additions, if
any.
The specimen Maturity Sums Assured (MSAs) per Rs.100/- monthly premium are
given below for some of the ages and terms:
Age at
Policy Term
Entry
Death Benefits
Under this plan death cover will be same irrespective of age at entry and term. On
death the nominee will receive 250 times the monthly premium, plus return of
premiums excluding extra/rider premium.
40
This pension plan is a vehicle for planning a life long pension and is also tax deferred.
Not only can you plan a pension for life with the help of these annuities but these
schemes also help you reduce your tax liability.
POLICY PARAMETERS
Entry Age 18 70
vesting age 50 79
FEATURES
(Amount in RS)
41
2,00,000 5,00,000
Rebates Available
3% 4% 5%
for Single Premium
Rebates Available
6% 7% 8%
for Annual Premium
DEATH BENEFITS
Between 11 to 20 years 4%
After 20 years 5%
It is a unit linked deferred pension plan. The policyholder can choose the plan
with or without risk cover. He can also choose the level of cover within the limits,
which will depend on the mode and amount of premium he/she desires to pay. The
allocated premium will be utilized to buy units as per the selected fund type.
POLICY PARAMETERS
Premium (Min) Rs. 5,000 p.a. for Regular premium and Rs. 10,000 for Single
premium
(Max) No limit
42
Vesting age 40-75
Sum Assured (min) NIL- (when no life cover is opted) Rs. 25,000 for Single
premium, Rs. 50,000 for Regular premium (When life cover is opted), (Max) Regular
Premium - 20 times of the annualized premium.
43
Investment in
Short-term investments such as
Govt. / Govt. Investment in
money market
Fund Type Guaranteed Listed Equity
instruments(Including Govt.
Securities / Shares
Securities & Corporate Debt)
Corporate Debt
44
1) Comparison between BSLI’s Children dream plan and LIC’s
Marriage Endowment or Educational Annuity Plan:
In BSLI plan policy term is 18 years less the age of child at entry.
But in LIC plan policy term is 5-25 years.
Premium paying frequency is almost same i.e. yearly , half yearly, quarterly,
monthly.
In case of death benefit: in BSLI plan the sum assured is paid to the nominee
upon the death of the life insured (parent). The new life insured is the child and
new owner is appointed as per your wishes. In LIC plan if death occurs due to
accident then basic sum assured is payable on death immediately and further
premiums are not payable. After expiry of the term again basic sum assured +
bonus is payable.
saral plan:
45
3) Comparison between BSLI’s Retirement plan and LIC’s New
Jeevan Suraksha plan:
In BSLI plan vesting age is 10-40 yrs from entry age (Max. 90yrs.)
In LIC plan vesting age is 50-79 yrs.
Premium paying frequency is same i.e. yearly, half yearly, quarterly, and
monthly
DEATH BENEFITS
In BSLI plan the unfortunate event of death of the policyholder the nominee will
receive the higher of:
75% of the base premium and all renewal base premiums paid. OR the surrender
value at the time plus all accumulated survival benefits.
In LIC plan
Between 11 to 20 years 4%
After 20 years 5%
46
4) Comparison between BSLI Platinum plus plan and LIC Market
plus plan:
47
Review of Existing Literature
Term insurance is the most basic life insurance policy where the only benefit
is compensation to the nominee if the insured person dies. But in India the thought of
not getting the money ‘invested’ back on maturity has been pushing buyers towards
money back schemes and, in the past few years, unit-linked insurance plans (Ulips),
which boast of a seemingly irresistible combination of investment, insurance and tax
saving. Insurance agents too have actively been pushing Ulips as these have helped
pump up premium volumes. While the level of premium has gone up, the purchase of
protection has not been commensurate with the growth in the income.
All this is set to change with insurers effecting cuts in premium rates on term
insurance, particularly for high-value policies entailing a sum assured of over Rs 25
lakh. For instance, Birla Sun Life’s term insurance cover is available for an annual
premium as low as Rs 13,400 (excluding 10.3% service tax) for a sum assured of Rs 1
crore and a 20-year term, if the proposer is a healthy 30-year-old female.
Term insurance rates have come down primarily because of two reasons —
competition and increased life expectancy.
48
Following the advent of Ulips, insurance policies have become so complex
that it is near impossible to compare products of two companies. The only product
that can really be compared is the term insurance policy. Moreover, the comparison
has been made easier with quite a few internet-based aggregators giving term
insurance quotes across companies. With over 17 life companies in the fray,
competition has pushed term insurance rates further down.
Decrease in mortality rates too has played its part. Most individuals buy term
insurance to cover any loss of revenue for their families if they die during their
earning years. With the mortality rates for those below 60 years coming down,
insurance companies have been able to sharply reduce term insurance premium.
In the past couple of years, the term insurance premium rates have declined by
almost 30%, with major private players like ICICI Prudential Life Insurance, Birla
Sun Life and HDFC Standard Life Insurance slashing their rates.
There are other factors for rate reduction as well. These include deepening
insurance penetration and the reduction in solvency margins prescribed by IRDA and
availability of better mortality data — which helps companies ascertain the risks
better. Insurers have been able to reduce cost of high-value policies further because
well-heeled urban Indians, enjoying the fruits of a blossoming economy, are seeing
marked improvement in mortality rates. Their life expectancy is enhanced by the
quality of their lifestyle and access to best-in-class healthcare facilities, leading to low
probability of death due to natural causes.
Sustaining the premiums at these levels doesn’t seem likely to hit a roadblock in the
future and, in fact, there are signs that the market could see low-cost insurance scaling
new highs in the coming days. “Offering pure term insurance at cheaper rates for HNI
consumers is an idea, which we might see more of in the near future,” says Manik
49
Nangia, corporate vice-president and head, product management, Max New York Life
Insurance.
A win-win situation?
If indeed most people are living well beyond their earning years, does a term life
insurance pass the utility test from the policy holders’ perspective? While every
individual needs to carry out his/her own cost-benefit analysis before zeroing in on a
suitable policy, overall, these protection covers are worth buying, feel financial
planners, particularly for those falling in the high-income category. After all, their
family is used to a superior lifestyle, and should anything happen to the provider; the
term cover’s sum assured should act as an appropriate replacement for the income
lost.
Also, given the high level of indebtedness of today’s working class, either in the form
of home loans or auto loans, there is a risk that the family is left with a liability rather
than an inheritance if the breadwinner dies. For such individuals, variants of term
insurance cover — mortgage protection plans and credit shield — would ensure that
life insurance takes care of their outstanding loans.
The thumb rule for buying a protection cover dictates that the sum assured should be
equal to 100 times the insured’s monthly income. Though this estimate is generally
considered to be accurate, there is a view that to ensure complete peace of mind, the
basic term cover could be enhanced with riders like critical illness and disability
benefit. The rationale behind this argument is that in the event of an accident resulting
in severe physical impairment or a serious ailment, the term cover will be rendered
ineffective as it comes into play only after the insured’s death.
50
Assistant secretary with the office, AC Keshav, stated that it was a facility,
which people could approach easily to raise insurance-related issues. He said
complaints against life insurance firms in the city had risen to 74 this year as
compared to 68 for 2008. Public sector insurance providers are higher on the
grievance list as compared to private firms, he added.
“The northern region had 619 life insurance-related complaints this year, which
numbered 517 last year,” said Keshav.
Officials from LIC of India, New India Assurance, Oriental Insurance, ICICI
Lombard, HDFC Standard life and SBI Life attended the seminar.
“Sale of life insurance products remained flat during the first quarter of the
current fiscal year. Consumers are preferring to invest smaller amounts in insurance
products,” said Sanjay Kumar Jha, zonal manager for north and head of pension
business at Bajaj Allianz.
Life insurers collected Rs 14,456 crore as new premium in the first quarter of
this fiscal compared to Rs 14,320 crore during the corresponding period last year,
according to data released by the Insurance Regulatory and Development Authority
(IRDA). The companies sold 84.5 lakh policies in this fiscal year’s first quarter.
At a time when large salary hikes are on hold in corporate India and there is a
check on recruitment in several sectors, consumers are preferring to hold on to their
money.
51
“This year, we have seen a month on-month improvement in performance. By
the end of the year, the industry will surely register a good growth rate,” said Reliance
Life Insurance president Malay Ghosh.
The 22 private life insurers sold 25.4 lakh policies in this period, collecting Rs
5,427 crore in premium from new products — a decline of 20% on Rs 6,795 crore
premium collections during the corresponding period last fiscal year.
While the rest of the world is in grip of an economic downturn and the year
2009 is witnessing a downtrend in the life insurance industry, with almost flat growth,
India for the very first time has been ranked amongst the top10 life insurance markets
worldwide.
The facts, data and reports for the year 2008-09 state that insurance sector
penetration, both in life and non-life segments, has improved since the time the sector
has been opened for private participation.
52
RESEARCH METHODOLOGY
MEANING OF RESEARCH:
Research in common parlance refers to a search for knowledge. One can also
define Research as a scientific and systematic search for pertinence information on a
specific topic. In fact, research is an art of scientific investigation.
DEFINITION OF RESEARCH:
Data Collection:
The objectives of the project are such that both primary and secondary data is
required to achieve them. So both primary and secondary data was used for the
project. The mode of collecting primary data is questionnaire mode and sources of
secondary data are various magazines, books, newspapers, & websites etc.
Primary data
The primary data are those data which are collected afresh and for the first
time, and thus happen to be original in character.
Secondary data
The secondary data on the other hand, are those which have already been
collected by someone else and which have already been passing through the statistical
process.
53
Sample size
Research
Statistical Tools
Percentage method
Ranking method
Chi-Square Test
ANOVA Table
54
DATA ANALYSIS AND INTERPRETATION
TABLE4.1.1
(%)
Yes 90 90%
No 10 10%
INFERENCE
90% people say that investment in insurance sector is good option and 10% are
saying not.
55
INVESTMENT IN INSURANCE SECTOR:
CHART4.1.1
INVESTMENT IN INSURANCE
SECTOR
10%
Yes
No
90%
56
2) Which company’s policy do you have?
TABLE4.1.2
BSLI 40 40%
LIC 60 60%
INFERENCE
57
PREFRENCE OF COMPANY POLICIES:
CHART4.1.2
70
60
50
number of respondents
40 B S LI
30 L IC
20
10
0
B S LI L IC
co m p a n y n a m e
58
3) Customer level of importance with reference to the plans given in the
company using ranking methodology.
TABLE4.1.3
Particular 5 4 3 2 1
Retirement plan 40 25 15 15 05
Children plan 70 20 05 03 02
Health plan 10 05 25 20 40
INFERENCE
Most of the people give importance for the children’s plan and they did give the
importance to golden jubilee plan.
59
CHART4.1.3
60
TABLE4.1.4
Below 5 % 0 0
5-8 % 14 6
8-12 % 42 28
Above12 % 4 6
TOTAL NUMBER OF 60 40
RESPONDENTS
INFERENCE
14% people of LIC and 6% of Birla are getting 5-8% R.O.I., 42% people of LIC and
28 of Birla are getting 8-12% interest.
PERCENTAGE OF INTEREST:
61
CHART4.1.4
62
TABLE4.1.5
High interest 8 12
Annual premium is 10 4
reasonable
Maturity benefits 12 8
TOTAL NUMBER OF 60 40
RESPONDENTS
INFERENCE
12% people of Birla are investing in this company due to its high interest, 18% people
of LIC say that they are investing in LIC due to growth of the company.
CHART4.1.5
63
6) Do you think that investment in BSLI is better than LIC?
TABLE4.1.6
64
Particulars Number of respondents
Yes 44
No 56
INFERENCE
44% people are saying that investment in BSLI is better than LIC, but 56% are saying
no.
BETTER INVESTMENT:
65
CHART4.1.6
No. of respondents
Yes No
44
56
66
TABLE4.1.7
Growth rate 16
Risk covered 4
All above 6
INFERENCE
16% people are saying that because BSLI gives guaranteed F.V. at maturity time, 8%
people are saying it has more ULIP plans.
67
CHART4.1.7
N o . o f re s p o n d e n t s
6 G u a ra n t e e d F . V . a t
10 m a t u rit y
G ro w t h ra t e
4
M o re U L IP p la n
R is k c o ve re d
8
A ll a b o ve
16
68
TABLE4.1.8
High return 6
INFERENCE
24% people are saying that investment in LIC is better it has govt. stake, 14% are
saying it has brand loyalty
69
CHART4.1.8
High return, 6
Low A.P.than BS
High return
9) When company launch new product, then any information is given to you
about that product?
70
TABLE4.1.9
Yes 24 16
No 36 24
Total number of 60 40
respondents
INFERENCE
24% people of LIC are saying yes and 36% are saying no, 16% people of BSLI are
saying yes and 24% people are saying no about providing information
71
CHART4.1.9
40
35
30
25
NUM BER O F
20
R ES P O N D EN T S Y es
15
No
10
5 No
0
Y es
L IC
B S LI
COM PANY NAM E
10) In near future, do you think BSLI will have high growth rate?
TABLE4.1.10
72
Particulars Number of respondents
Agree 20
Neutral 26
Disagree 14
Can’t say 40
INFERENCE
20% people are saying that BSLI will grow in future, 26% people are saying it will be
neutral, 40% can’t say, and 14% are disagreeing.
CHART4.1.10
73
40
35
30
25
NUM BER O F
20
RES P O NDENTS
15 S e rie s 1
10
5
0
A g re e N e u t ra lD is a g re Ce a n ’t s a y
O P T IO N S
Ranking method:
Customer level of importance with reference to the plans given in the company
using ranking methodology.
74
Calculation:
TABLE4.1.11
Particular 5 4 3 2 1
Retirement plan 40 25 15 15 05
Children plan 70 20 05 03 02
Health plan 10 05 25 20 40
Golden jubilee 10 15 05 20 50
plan
75
Rank Score No. of respondent Total
1 5 50 250
2 4 30 120
3 3 20 60
4 2 08 18
5 1 02 02
= 450/100
= 4.5
RETIREMENT PLAN
76
1 5 40 200
2 4 25 100
3 3 15 45
4 2 15 30
5 1 05 05
= 380/100
= 3.8
CHILDREN PLAN
1 5 70 350
77
2 4 20 80
3 3 05 15
4 2 03 06
5 1 02 02
= 453/100
= 4.53
HEALTH PLAN
78
Rank Score No. of respondent Total
1 5 10 50
2 4 05 20
3 3 25 75
4 2 20 40
5 1 40 40
= 225/100
= 2.25
1 5 10 50
2 4 15 60
79
3 3 05 50
4 2 20 40
5 1 50 50
I Children plan
IV Health plan
= 215/100
= 2.15
Result:
80
Percentage Analysis Method
81
It refers to a special kind of ratio. This is used for making comparison
between two or more series of the Data. It is denoted by percentage (%) .
Yes = 90/100*100
= 90
NO = 10/100*100
= 10%
LIC = 60/100*100
= 60%
BSLI = 40/100*100
= 40 %
82
AGE GROUP VERSES SERVICE
AIM: To find whether there is significance difference between the age group and
overall performance of the Branch.
Null Hypothesis: There is no significance difference between the age group and
overall performance of the Branch.
Alternative Hypothesis: There is significance difference between the age group and
overall performance of the Branch.
OBSERVED FREQUENCY
EXPECTED FREQUENCY
FORMULA:
ψ² = ∑ (Oi-Ei) ² / Ei
83
Where, ψ² = Chi-square
Oi = Observed Frequencies
Ei = Expected Frequencies
CALCULATION TABLE
N=(R-1)*(C-1)
= (2-1)*(5-1)
= 1*4
=4
TABLE VALUE=9.488
84
RESULT:
ANOVA TABLE
In the future, do you think BSLI will have high growth rate.
85
RATE
AGE-GROUP
25-30 3 5 4 17
31-35 3 6 3 8
36-40 7 4 6 9
41-45 5 8 1 2
45-ABOVE 2 3 0 4
There is no significant different between the age-group and BSLI High growth rate in
future.
There is significant different between the age-group and BSLI High growth rate in
future.
STEP 1:
3 9 5 25 4 16 17 289 29
3 9 6 36 3 9 8 64 20
86
7 49 4 16 6 36 9 81 26
5 25 8 64 1 1 2 4 16
2 4 3 9 0 0 4 16 9
20 96 26 150 14 62 40 454
= 20 + 26 + 14 + 40
= 100
=5+5+5+5
= 20
= (100)²/20
= 10,000/20
= 500
STEP 2:
= ∑X1²+∑X2²+∑X3²+∑X4²-C.F
= 762 – 500
87
= 262
STEP 3:
Sum of squares of deviations between the columns (BSLI High growth rate in future)
= (∑X1²/n+∑X2²/n+∑X3²/n+∑X4²/n) – C.F
= 574.4 – 500
= 74.4
STEP 4:
= (29) ²/4 + (20) ²/4 + (26) ²/4 + (16) ²/4 + (9) ²/4 – C.F
= 563.5 – 500
= 63.5
STEP 5:
= 262 – 137.9
88
= 124.1
STEP 6:
ANOVA TABLE
RESULT:
89
There is no significant different between the age group and BSLI High growth
rate in future.
Thus there is no significant different between the age group and BSLI High
growth rate in future.
90
NO OF
S.NO OPTIONS PERCENTAGE (%)
RESPONDENTS
40 40%
1. BSLI
60 60%
2. LIC
RUN:
= 22.78
σ = √22.78 = 4.77
RESULT:
Since the no of runs (= 25) is inside the curve, H0 is accepted. i.e. samples are
chosen randomly.
91
FINDINGS
90% people saying that investment in insurance sector is good option and 10%
are saying no.
92
56% people are saying that investment in LIC is better than BSLI, 44% are
saying investment in BSLI is better.
Most of the people of both LIC and BSLI are getting rate of interest 8-12%
Most of the people invest due to high interest of the policy in BSLI
26% people saying that BSLI growth will be neutral in near future.
The company should find out the number of people who are not having any of the
insurance plans through an intensive market research and motivate them to get
insured.
93
At some level Company should provide information to the customers about
the charges of the policy.
CONCLUSION
Here in this study we see that people have more policies of LIC in comparison
to BSLI. People have more faith in govt. companies than private. So it is necessary for
private companies. That they should give more attention to that points or that areas
where it lacks for further future growth. Insurance sector is very wide and co. can
grow in future.
94
BIBLIOGRAPHY
www.birlasunlife.com
www.licindia.com
www.google.com
95
Newspapers
www.irda.com
Reference Books:
QUESTIONNAIRE
• NOTE: The information that you will provide will be kept confidential and
will be used only for academic Purpose.
• Our questionnaire will be to those persons who have plans of BSLI or LIC.
GENERAL
96
Age:
(a) 25-30 (b) 31-35 (c) 36-40 (d) 41-45 (e) Above 45
Gender:
(a)Whole Life Plan (b) Retirement Plan (c) Children Plan (d) Health
Plan (e) Golden jubilee plan
(a) Excellent (b) Very good (c) Good (d) poor (e) Very poor
(a)Excellent (b) Very good (c) Good (d) poor (e) Very poor
(a)Excellent (b) Very good (c) Good (d) poor (e) Very poor
(a)Excellent (b) Very good (c) Good (d) poor (e) Very poor
(a)Excellent (b) Very good (c) Good (d) poor (e) Very poor
97
(a) Below 5% (b) 5-8% (c) 8-12% (d) Above 12%
98
(e) Any other (please specify)____________________
14. Whenever company launch new product, then any information is given to you
about that product?
15. In the future, do you think BSLI will have high growth rate.
99