A

Project report
On

“Performance evaluation of SBI Life Insurance products in

comparison with Life Insurance Corporation (LIC)”

M.S.S. College of M.B.A.

{Affiliated to Dr. B.A.M. University Aurngabad }

SUBMITTED TO: SUBMITTED BY:

Mr. GANESH KHARAT

(Project’s Guide) MBA-1st SEM.

Roll no.

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 GUIDE’S CERTIFICATE

This is to certify that the project entitled “”Performance evaluation of SBI Life
Insurance products in comparison with Life Insurance Corporation (LIC)
is being submitted in partial fulfillment of the requirement for the award of
master’s degree of business administration of Dr. Babasaheb Ambedkar
University. It is a confined research work carried out by GANESH G. KHARAT
under my supervision. Any part of research work has not been submitted for any
other degree. The assistance and help received during the execution of the project
has been fully acknowledged.

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 ACKNOWLEDGEMENT

I take this opportunity to express my acknowledgement and deep sense of

gratitude for rendering valuable assistance and guidance to me by following
personality for successful completion of my project.

I am highly obliged to my project guide Prof. for his personal

encouragement, prompt assistance and help provided to me in completion of
my project. He has helped me a lot by giving suggestions and guidance
whenever needed. His contribution has been extremely useful and is greatly
appreciated. I honor his knowledge and competence in the field of
management.

GANESH G KHARAT

3
 PREFACE

To achieve partial and concrete results, it is necessary that theoretical

knowledge must be supplemented with practical environment.

Keeping this view in mind, I have completed my research work regarding

“Performance evaluation of SBI Life Insurance products in comparison
with Life Insurance Corporation (LIC)” By doing this research work I
have learnt a lot of things which would be really helpful for me in future. This
experience in decision making and practical application of knowledge has
contributed greatly to my growth.

GANESH KHARAT

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 DECLARATION

I hereby declare that the survey entitled, “Performance evaluation of SBI Life
Insurance products in comparison with Life Insurance Corporation (LIC),
that no part of research work has been submitted for any other degree. I also
undertake that work is purely academic and no part has been copied or taken from
any where. The motive behind the research project was “Performance evaluation
of SBI Life Insurance products in comparison with Life Insurance
Corporation (LIC)

GANESH KHARAT

5
 INDEX

Serial No. Particulars Page No.

1 Introduction to Insurance 8
2. Company profile 15
3. Major competitor LIC 24
4. Various life insurance plans of BSLI 25
5. Various plans of LIC 27
6. Major plans of BSLI 30
7. Major plans of LIC 37
8. Objectives 45
9. Research Methodology 46
10. Data Analysis 49
11. Findings 60
12. Suggestions 62
13. Limitations 64
14. Conclusion 66
15. Bibliography 68
16. Annexure 70

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INSURANCE
The meaning of insurance: Insurance is a policy from a large financial institution that offers a
person, company, or other entity reimbursement or financial protection against possible future
losses or damages.

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.

Major types of insurances are as mentioned below:

 Life insurance: Descendant’s family receives financial benefits. Life insurances also
offer paid proceeds to the beneficiary.

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  Automobile insurance: Usually automobile insurances cover damages and legal
financial expenditures of the automobile driver.
 Health insurance: Health insurance covers the expenditures associated to treatment and
medical expenditures.
 Credit insurance: Borrowers often fail to repay debts, loans and mortgages due to
certain unavoidable circumstances, credit insurances can be of great help during such
crisis.
 Property insurance: Property protection insurance provides protection from risks
associated to theft, fire, floods etc.

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.

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

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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
an intent to recover claims to be paid and administrative costs, and to make a profit.

MAJOR PLAYERS OF INDIA IN 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.

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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.

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.

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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.

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

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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.

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.

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. Canada.

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Some of the important milestones in the life insurance business in India are:

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

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

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

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

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

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

1972: GENERAL INSURANCE BUSINESS (NATIONALISATION) ACT 1972

An Act to provide for the acquisition and transfer of shares of Indian insurance companies and
undertakings of other existing insurers in order to serve better the needs of the economy by securing the
development of general insurance business in the best interests of the community and to ensure that the
operation of the economic system does not result in the concentration of wealth to the common detriment,
for the regulation and control of such business and for matters connected therewith or incidental thereto.

1999 INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT, An Act

To provide for the establishment of an Authority to protect the interests of holders of insurance
policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life
Insurance Corporation Act, 1956 and the General Insurance Business(Nationalisation) Act, 1972.

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14
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance. SBI owns
74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI Life Insurance has an
authorized capital of Rs. 2,000 crores and a paid up capital of Rs 1,000 crores.

+ =

Mission:
 
"To emerge as the leading company offering a comprehensive range of life

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insurance and pension products at competitive prices, ensuring high standards
of customer satisfaction and world class operating efficiency, and become a
model life insurance company in India in the post liberalization period".

Company Values

 Trustworthiness
 Ambition
 Innovation
 Dynamism
 Excellence

Distribution Channel of SBI Life.

SBI Life has a unique multi-distribution model encompassing vibrant Bancassurance, Retail Agency,
Institutional Alliance and Corporate Solutions distribution channels.

SBI Life extensively leverages the State Bank Group relationship as a platform for cross-selling insurance
products along with its numerous banking product packages such as housing loans and personal loans.
SBI’s access to over 100 million accounts across the country provides a vibrant base for insurance
penetration across every region and economic strata in the country, thus ensuring true financial inclusion.
Agency Channel, comprising of the most productive force of over 65,000 Insurance Advisors, offers door
to door insurance solutions to customers.

KEY MILESTONES

 Financial Year 09-10:

o Reported a robust Net Profit of Rs.276 Crores.

o Crossed Rs.10,000 Crores in Gross Written Premium (GWP).

o Ranked No.1, in New Business Premium, amongst private life

insurance companies.

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 o Assets Under Management (AUM) grew by 96% to Rs.28, 551
Crores.

o Globally topped the prestigious MDRT 2009 for having Maximum

number of MDRT Members.

o ICRA reaffirmed iAAA rating to SBI Life indicating highest claims

paying ability.

o Awarded ISO Certification (ISO/IEC 27001:2005) for Information

Security Management System (ISMS).

o Retained ISO 9001:2000 certificate for superior claim settlement

process.

 Financial Year 08-09:

o Ranked among global top three in terms of number of Million

Dollar Round Table (MDRT) members.

o Bagged the coveted personal finance award-Outlook Money NDTV

Profit "Best Life Insurer 2008".

o CRISIL, country’s leading rating agency, reaffirmed its highest

financial rating AAA/Stable to SBI Life. In 2007, SBI Life became
the first life insurer in India to receive this rating from CRISIL.

o ICRA assigned iAAA rating indicating highest claims paying ability

to SBI Life Insurance.

o Retained ISO 9001:2000 certificate for superior claim settlement

process.

 Financial Year 07-08:

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 o Ranked amongst global top five life insurance companies in the
number of MDRT members.

o Rated as the ’The Most Trusted Private Life Insurer’ according to a

survey conducted by Brand Equity in association with AC Nielsen
ORG-MARG and the Economic Times Intelligence Bureau.

o Became first life insurer in India to receive the highest financial

rating ’AAA’ from CRISIL, the country’s best known rating agency
in 2007.

o Forayed into micro insurance with the launch of ’Grameen Shakti’

in Bhubaneshwar, Orissa for the economically underprivileged
sections of society.

o Received ISO 9001: 2000 certification for superior claim settlement

process.

o Became the only domestic life insurer to achieve CMMI Level 3

certification for IT processes and software development capabilities.

 Financial Year 06-07:

o Second consecutive year of Profitability

o Leads Private Life Insurance Companies in Lives covered : 6.49

Million lives covered

 Financial Year 05-06:

o Became the first Life Insurer to make Profits

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19
 SWOT ANALYSIS OF SBI LIFE

STRENGTH:

 Associated with India’s most trusted brand “State Bank

Group” which is more than 200 years old and largest in
banking.
 Multi-channel distribution and one of the largest distribution
networks in India.

 10 Million Policies.

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  Capabilities of company to change 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.

 Professional training for the employee and insurance advisor.

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.

THREATS:

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 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.

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MAJOR COMPETITOR AT A GLANCE LIC (LIFE INSURACE
CORPORATION)

LIC had 5 zonal offices, 33 divisional offices and 2182 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-organisation
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-organisation 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 Centres 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.

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.

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From then to now, LIC has crossed many milestones and has set unprecedented performance
records in various aspects of life insurance business.

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SBI Life Insurance CO.Ltd.

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SBI Life Insurance Co. Ltd. have 5 type plans.

1. Unit link Plans

2. Child Plans

3. Pension Plans

4. Protection Plans

5. Saving Plans

Various Plans offered by LIC are as follows :

Endowment Assurance Plans

1. Jeevan Amrit : This plan is designed for a higher cover at a lower cost. In this plan premium
payment is limited to 3 or 4 or 5 years and the premium payable during the first year is higher
than the premiums payable in subsequent years.

2. New Janaraksha Plan : Is an Endowment Assurance plan that provides financial protection
against death throughout the term of plan. It pays the maturity amount on survival to the end of
the term.

3. Jeevan Mitra(Double Cover Endowment Plan) : Is an endowment plan which takes care of
the financial needs even if death of the policyholder for the whole term of the plan.

4. Jeevan Mitra (Triple Cover Endowment Plan) : Is an endowment plan where thrice the
Sum Assured plus all bonuses on the basic sum assured to date is payable in a lump sum upon
the death of the life assured.

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.

6. The Endowment Assurance Policy-Limited Payment : In this policy the payment of

premium can be limited either to a single payment or to a term shorter than the policy.

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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.

3. Jeevan Chhaya : It is a plan where financial protection is given against death during the term
of the plan. It is an Endowment Assurance plan. Besides this benefit one-fourth of Sum Assured
is payable at the end of each of last four years of policy term irrespective if the life assured dies
or survives the duration of the policy.

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.

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.

Money Back Plan

1. Bima Bachat : Is a money-back policy which offers financial security and assurance to the
policy holder and his family. The policy holder has to pay only one premium.

2. Money Back-20 years : Is an endowment plan where periodic payments of partial survival
benefits are paid during the term of the policy till the policy holder is alive.As the policy name

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goes this plan 20% of the sum assured is payable after 5,10,15 years and the balance 40%
accrued bonus is payable at the 20th year.

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.
2. New Jeevan Suraksha - I : Is a deferred annuity plan.
3. Jeevan Nidhi : Is a deferred annuity plan with profits.
4. Jeevan Akshay - VI : By paying a lump sum amount this immediate annuity plan can be
bought.

Unit Plans

1. Child Fortune Plus : Is a plan for children and to meet their educational needs. Its 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.

Whole Life Plans

1. Jeevan Anand : Is a combination of two plans- Endowment Assurance and Whole Life plan.

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.

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3. The Whole Life Policy : Is a plan mainly to provide for payment of sum assured plus bonuses
on the death of the policyholder.

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.

Some main Plans of BSLI:

(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

Entry age 18-70

Minimum annual premium Rs. 50000

Minimum sum assured 5*annual premium

Policy term 10 years

Premium paying term 3 years

Premium and sum assured

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You can pay your policy premium annually, half-yearly, quarterly or monthly, subject to a
minimum installment premium of:

Rs. 50,000 per annum

Rs. 25,000 half-yearly

Rs. 15,000 quarterly; or

Rs. 10,000 per month (3 monthly installments required at issue)

You choose your Sum Assured (minimum 5 x annual premium).

Risk profile

 0-40% in money market & cash

 0-100% in debt instruments & derivatives
 0-100% in equities & equity related securities.

Maturity Benefit
On maturity, your Fund Value will be paid to you.
In addition, we will pay an amount equal to:

 the number of units under your policy at that time; times

 the excess, if any, of the Guaranteed Maturity Unit Price over the then prevailing unit
price

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

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 Partial withdraw after 3 complete policy years.

Minimum partial withdraw rs.5000

Policy surrender After 3 policy years and you will get 100% fund value at that time.

(2) Birla Sun Life Insurance children’s Dream Plan –

Policy parameters

Life Insured (parent): 18 years – 60 years

Entry Ages
Nominee (child) : 30 days – 13 years

Term 18 years less the age of child at entry

Premium paying Regular policy premiums can be paid yearly, half-yearly,

frequency quarterly or monthly (for ECS only)

Addition of riders Accidental Death & Dismemberment Benefit (ADD)

The annual policy premium is based on:

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  The guaranteed maturity benefit and option you choose.
 The enhanced sum assured you desire.
 The plan term and your gender and age at entry.

Guaranteed Fund Equals all premiums paid, less charges and guaranteed maturity
Value benefit(s), accumulated at 3% per annum

Partial
Allowed after 3 complete policy years
Withdrawals

Investment Funds Protector, Builder, Enhancer

AT Death The sum assured is paid to the nominee upon the death of the life insured (parent)
Benefit The new life insured is the child and new owner is appointed as per your wishes.
The policy is continued as usual except:
•All riders and risk charges will cease
•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

 Premium allocation charges

 Fund management charges

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 Mortality charges

 Surrender charges etc.

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 (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.

Poicy parameters
Entry age 18-55

Policy term 10, 15, and 20 years

Age at maturity 65 or less

Mode of Premium Payment - Annual, Semi Annual, Quarterly, Monthly.

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.

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(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

Premium paying policy premiums can be paid yearly, half-yearly, quarterly or

frequency monthly

According to age of the insured person. (e.g. for 25 – Rs. 4756

Premium
p.a., for 45- Rs. 6725 p.a., for 55- Rs. 9724 p.a.).

Benefits –

1. BSLI pay a fixed benefit amount of Rs. 1000 per day in Hospital plus Rs. 1000 per day in
Intensive Care Unit (ICU).
In case of an admission for surgical management :

2. if the surgery is listed in covered surgeries: BSLI pay a fixed benefit amount based on the
grade of the covered surgery-Rs. 100000, Rs. 50000, Rs. 25000, Rs. 15000 and Rs. 10000
for grade 1(major) to 5(minor) respectively.
3. if the surgery is not listed in the covered surgeries: BSLI pay a fixed benefit amount of
Rs. 2000 per day in hospital plus Rs. 1000 per day in ICU.

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

35
 This plan has no death benefit or maturity benefit. Furthermore, this plan provides for no
cash surrender value nor any policy loans.

(5) Birla Sun Life Retirement plan

Policy parameters

18 years – 80 years
Entry Ages

Term

policy premiums can be paid yearly, half-yearly, quarterly or

Premium paying frequency
monthly

Minimum Rs. 9600 p.a.(premium should be multiple of Rs.

Premium
1200)

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.

Tax benefits

Under section 80CCC and 10(10A)

Partially withdraw

You can do partially withdraw min. Rs.5000

36
Some main plans of LIC
(1) 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.

Entry age 18 (min.) 60(max)

Sum assured 50000 (min) no limit (max)

Term 5 (min) 25 (max)

Mode of payment monthly, qtly, half yrly, yly,

FEATURES

The Marriage Endowment/ Educational annuity plan provides a sum assured to be kept aside for
the expenses of marriage or higher education of the policyholder's children. Premiums payable
for selected term or till death of the life Assured. Benefits will be given only after the selected
term.

Maturity benefits
Sum Assured + Bonus

Accident:

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.

37
(2) Jeevan saral plan of LIC

Plan Details: This plan is appropriate for employees seeking life cover through Salary Savings
Schemes.

Eligibility:

  Minimum Maximum

Age 12 Yrs (completed) 60 Nearest Birthday

Term 10 35

Age at maturity Maximum 70 years

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:
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

  10 yrs 15 yrs 20 yrs 25 yrs

20 11,156 19,628 28,039 36,839

40 10,431 17,839 24,598 30,854

50 8,442 13,444 16,164  

38
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 premium.

(3) New Jeevan Suraksha Plan

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

Min Max

Entry Age 18 70

vesting age 50 79

35 years.
deferment period  2 years

Premium Rs. 250 p.m.

Yearly, half yearly,

Mode of payment
quarterly, monthly

Features

AMOUNT (Rs) >=1,00,000 < 2,00,000 >=2,00,000 < 5,00,000 >= 5,00,000

Rebates Available for

3% 4% 5%
Single Premium

Rebates Available for

6% 7% 8%
Annual Premium

39
Death Benefits
If death occurs within 10 years - 3% (interest on all premium given)

Between 11 to 20 years 4%

After 20 years 5%

(4) LIC's Market Plus Plan

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.
The Policyholder's Unit Account will be subject to deduction of charges. Units will be allotted
and cancelled based on the Net Asset Value (NAV) of the respective fund of the date of
allotment / cancellation. There is no Bid-Offer spread (both the Bid price and Offer price of units
will be equal to the NAV). The NAV will be declared on a daily basis and will be based on the
investment performance, Fund Management Charges (FMC) and whether fund is expanding or
contracting under each fund type.

Policy parameters

Entry age 18-70

Premium (Min) Rs. 5,000 p.a. for Regular premium and Rs. 10,000 for Single premium

(Max) No limit

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.

40
Minimum Deferment period 5 years

Investment fund types:

Investment in Govt. /
Short-term investments such as money Investment in
Govt. Guaranteed
Fund Type market instruments(Including Govt. Listed Equity
Securities / Corporate
Securities & Corporate Debt) Shares
Debt

Bond Fund Not less than 80% 100% NIL

Not less than 15%

Secured Fund Not less than 65% Not more than 85% and not more than
35%

Not less than 30%

Balanced Fund Not less than 50% Not more than 70% and not more than
50%

Not less than 60%

Growth Fund Not less than 20% Not more than 40% and not more than
80%

41
comparison between some main products of BSLI and LIC

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.

 In BSLI fund value is guaranteed.

o In LIC plan fund value is not guaranteed.

2) Comparison between BSLI’s Saral jeevan plan and LIC’s Jeevan saral plan

 In BSLI plan entry age is 18-55 years

In LIC plan entry age is 12-60 years

 In BSLI policy term is 10, 15, and 20 years.

In LIC policy term is 10-35 years.

 In BSLI plan max. Maturity age is 65 years

In LIC plan max. Maturity age is 70 years.

 In BSLI min. premium is 10000 p.a.

In LIC plan min. premium is 5000p.a.

42
 3) Comparison between BSLI’s Retirement plan and LIC’s New Jeevan
Suraksha plan.

 In BSLI plan entry age is 18-80 years

In LIC plan entry age is 18-70 yrs.

 In BSLI plan vesting age is 10-40 yrs from entry age (Max. 90yrs.)
In LIC plan vesting age is 50-79 yrs.

 In BSLI plan min. premium is 9600 p.a.

In LIC plan min. premium is 3000 p.a.

 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

If death occurs within 10 years - 3% (interest on all premium given)

Between 11 to 20 years 4%

After 20 years 5%

4) Comparison between BSLI Platinum plus plan and LIC Market plus plan

43
 Entry age in BSLI and LIC is same i.e. 18-70 years.

 In BSLI min. annual premium is 50000p.a.

 In LIC plan premium is 10000p.a.

 In BSLI plan maturity benefit is guaranteed

 In LIC plan maturity benefit is not

guaranteed

44
 Objectives of study

 To determine and analyze the Market Potential of the Birla Sun Life
Insurance Company in MOGA City.

 To study and determine the competitor (LIC) position in the market.

 To analyze market share of Birla Sun Life Insurance products in Moga city.

 To analyze the customer satisfaction regarding LIC and BSLI.

45
RESEARCH METHODOLOGY-

MEANING OF RESEARCH-

Before understanding Research Methodology, we should understand the

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-

Research is a systematized effort to gain new knowledge”

Redmann & Mory

MEANING OF RESEARCH METHODOLOGY-

Research Methodology, it is a way to systematically solve the research Problem. It

may be understood as a science of studying how research is done scientifically. In
it we study the various steps that are generally adopted by the researcher in
studying his research problem along with the logic behind them. It is necessary for
the researcher to know not only the 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

46
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.

Sample size –

100 people of MOGA City were selected

Research ----- Purposive research

47
48
 1) Do you think that investment in Insurance sector is good option?

Particulars No. of respondents

Yes 90

No 10

No. of respondents

no, 10

yes
no

yes, 90

Interpretation : 90 people say that investment in insurance sector is good option

and 10 are saying not.

49
2) Which company’s policy do you have?

Particulars No. of respondents

BSLI 40

LIC 60

60 60

50
40
40

30

20

10

0
No. of respondents
BSLI
LIC

Interpretation: 40 people have BSLI policies and 60 have LIC.

50
3) Which type of policy you have?

Particulars No. of respondents No. of respondents

LIC BSLI
Whole life plan 20 10

Retirement plan 10 4

Children plan 18 22

Health plan 6 4

Golden jubilee plan 6 0

Total 60 40

25 22
20
20 18
No. of respondents
15 LIC
10 10
10 No. of respondents
6 6 BSLI
4 4
5
0
0

Interpretation: 20 people of LIC and 10 of Birla have whole life plan, 18 people of LIC and 22 of birla ha

Children plan.

51
 4) What percentage of interest you get from it?

Particulars No. of respondents No. of respondents

LIC BSLI
Below 5 % 0 0

5-8 % 14 6

8-12 % 42 28

Above12 % 4 6

45 42
40
35
30 28
No. of respondents
25
LIC
20 No. of respondents BSLI
15 14

10
6 6
5 4
0 0
0
Below 5 % 5-8 % 8-12 % Above12 %

Interpretation: 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.

52
5) Why do you invest in this(LIC/BSLI) company?

Particulars No. of respondents No. of respondents

LIC BSLI
High interest 8 12

Good image of CO. 12 4

Growth of the CO. 18 12

Annual premium is reasonable 10 4

Maturity benefits 12 8

8
Maturity benefits 12

Annual premium is 4
reasonable 10

12
Growth of the CO.
18

4
Good image of CO.
12

12
High interest
8

0 5 10 15 20

Interpretation: 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
co.

53
6) Do you think that investment in BSLI is better than LIC ?

Particulars No. of respondents

Yes 44

No 56

No. of respondents
Yes No

44

56

Interpretation: 44 people are saying that investment in BSLI is better than LIC,
but 56 are saying no.

(If NO then go to Q.N. 8 otherwise Q.N. 7)

54
7) If yes, then why?

Particulars No. of respondents

Guaranteed F.V. at maturity 10

Growth rate 16

More ULIP plan 8

Risk covered 4

All above 6

No. of respondents

6 Guaranteed F.V. at
10 maturity
Growth rate
4

More ULIP plan

Risk covered
8

All above
16

Interpretation: 16 people are saying that because BSLI gives guaranteed F.V. at
maturity time, 8 are saying it has more ULIP plans.

55
8) If no, then why?

Particulars No. of respondents

LIC have govt. stake 24

Brand loyalty of LIC 14

Low A.P. than BSLI 12

High return 6

High return, 6

Low A.P. than LIC have govt. LIC have govt. stake
BSLI, 12 stake, 24 Brand loyalty of LIC
Low A.P. than BSLI
High return

Brand loyalty of
LIC, 14

Interpretation: 24 people are saying that investment in LIC is better it has govt.
stake, 14 are saying it has brand loyalty.

56
9) When company launch new product , then any information is given to you
about that product?

Particulars No. of respondents No. of respondents

LIC BSLI
Yes 24 16

No 36 24

40 36
35
30 24
25 24
20
15 16
10
Yes
5 No
0 No
Yes
res pondents

res pondents
No. of

No. of
LIC

B S LI

Interpretation: 24 people of LIC are saying yes and 36 are saying no, 16 people
of BSLI are saying yes and 24 are saying no about providing information.` 67

57
10) In near future, do you think BSLI will have high growth rate?

Particulars No. of respondents

Agree 20

Neutral 26

Disagree 14

Can’t say 40

No. of respondents

40
35
30
25
20 40
No. of respondents
15 26
10 20
14
5
0
Agree Neutral Disagree Can’t say

Interpretation: 20 people are saying that BSLI will grow in future, 26 are saying
it will be neutral, 40 can’t say, and 14 are disagree.

58
59
. Findings

 90 people saying that investment in insurance sector is good option and 10

are saying no.

 40 people have BSLI policies and 60 have of LIC.

 10 people of BSLI have Whole life plan, 4 have retirement plan, 22 have

children plan, 4 have health plan.

 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 have children plan of BSLI.

 Most of the people invest due to high interest of the policy in BSLI

 People have more faith in govt. Companies than the private.

 14 people invest in LIC due to its brand loyalty.

 26 people saying that BSLI growth will be neutral in near future.

60
61
 SUGGESTIONS

1) Information regarding new product should be provided to the customers.

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) At some level Company should provide information to the customers about the
charges of the policy.

4) Company should target each and every class of the society.

5) Charges should be low of the policies.

6) Annual premium should be reasonable.

7) BSLI Company should work in systematic way.

62
63
 LIMITATIONS

 Some of the respondents were not cooperative.

 There are chances of biased information provided by the

respondents.

 As the sample size is small compared to the total population,

therefore there can’t be full accuracy.
 The time was limited.
 Area was limited.

64
65
 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 BSLI Co. that it 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.

66
67
 Bibliography

 www.birlasunlife.com

 www.licindia.com

 www.google.com

 Newspapers

68
69
 ANNEXURE

 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

 Name __________________________________________________________________
 Addres_________________________________________________________________
 Gender_________Age ________Contact No. __________________________________

1. Do you think that investment in insurance sector is good option

(a) Yes (b) No

2. Which company’s policy do you have?

(a) Birla Sun Life Insurance (b) LIC

3. Which type of policy you have?

(a)Whole Life Plan (b) Retirement Plan (c) Children Plan (d) Health Plan

(e) Golden jubilee plan (f) any other please specify___________________

4. What percentage of interest you get from it?

(a) Below 5% (b) 5-8% (c) 8-12% (d) Above 12%

5. Why do you invest in this company?

(a) High interest (b) good image (c) Company growth

(d) Annual premium is reasonable (e) due to maturity benefits

70
 (f) Any other please specify ______________________________

6. Do you think that investment in BSLI is better than LIC?

(a) Yes (b) No

( If your answer is no then jump to question no. 8)

7. if yes then why?

(a) Because BSLI gives guaranteed fund value at maturity time

(b) Growth rate of company is high (c) BSLI has more ULIP plans than LIC

(d) Risk factor is covered properly (e) all above

(f) Any other (please specify)_____________

8. If no then why?

(a) Because LIC is having government stake. (b) Brand loyalty of LIC

(c) It has low premium plans than BSLI (d) Investment return is higher than BSLI

(e) Any other (please specify)__________________________

9. Whenever company launch new product, then any information is given to you about that
product?

(a) Yes (b) No

10. In near future BSLI is having high growth rate.

(a) Agree (b) neutral (c) disagree (d) can’t say

Any suggestions __________________________________________________

71
THANKS

72