1.1.

1 INTRODUCTION ABOUT THE STUDY

Definition Firm or person (suchasa broker or consultant)who actsasa mediator ona link between part ies toa business deal,investment decision, negotiation,etc.In moneymarkets,forexample, banks ac tasintermediariesbetweendepositors seeking interestincome and borrowers seekingdebt other types ofinformation. Also called a middleman. capital. Intermediaries usually specialize in specificareas, and serve as a conduit for market and

1.1.2 C RM IN INSURANCE What is CRM or Customer Relationship Management? CRM is the acronym for the term "customer relationship management". CRM is the common terminology used to describe the managing of prospects all the way through the entire sales process. CRM is often an entire data system that can either be manipulated manually, such as an index card system or a computer automated system. There is specially designed software for customer relationship management (CRM) that can be either installed directly into a computer or through a web based system that is accessible only online. CRM systems are useful in that they enable the management of the entire prospect/customer details such as the names, addresses, phone numbers, call records and purchase history and more. Other uses include planning of appointments, schedule of call back times and other sales related activities. Automated CRM, depending on the system, can be for only one user, or for several users to have access to customer accounts

Definition: Customer Relationship Management (CRM) refers to the methodologies and tools that help businesses manage customer relationships in an organized way. - CRM processes that help identify and target their best customers, generate quality sales leads, and plan and implement marketing campaigns with clear goals and objectives; - CRM processes that help form individualized relationships with customers (to improve customer satisfaction) and provide the highest level of customer service to the most profitable customers; - CRM processes that provide employees with the information they need to know their customers' wants and needs, and build relationships between the company and its customers. Customer relationship management tools include software and browser-based applications that collect and organize information about customers. For instance, as part of their CRM strategy, a business might use a database of customer information to help construct a customer satisfaction survey, or decide which new product their customers might be interested in.

1.1.3 Life Insurance: Overview

Although it is not immediately obvious, insurance forms a critical part of your investment portfolio. It is not just important, it is necessary. Paying towards your insurance policy is a sacrifice done today to provide for needs in the future.

Insurance policies are typically long term. Premiums paid toward the insurance plan are however locked in at the outset itself. In effect, when you buy an insurance plan, you are saving for the long term paying today's rates. Whatever the economic landscape might be, once you buy

an insurance plan at a particular premium rate, you are set. The premium doesn't change according to market markers or anything else.

Insurance has two major components - savings and mortality benefit - that make it a unique part of any investment portfolio. The savings component is the long-term gain where you typically get a pay off at the end of the term. The mortality component is the protector of your earning capacity i.e. it pays out the entire sum assured if you die during the term of the policy, compensating for the loss of income suffered by your family due to your demise

1.1.4 THE ROLE OF INSURANCE INTERMEDIARIES

The importance of insurance in modern economies is unquestioned and has been recognized for centuries. Insurance is practically a necessity to business activity and enterprise. But insurance also serves a broad public interest far beyond its role in business affairs and its protection of a large part of the countrys wealth. It is the essential means by which the disaster to an individual is shared by many, the disaster to a community shared by other communities; great catastrophes are thereby lessened, and, it may be, repaired. Insurance is an essential element in the operation of sophisticated national economies throughout the world today. Without insurance coverage, the private commercial sector would be unable to function. Insurance enables businesses to operate in a cost-effective manner by providing risk transfer mechanisms whereby risks associated with business activities are assumed by third parties. It allows businesses to take on credit that otherwise would be unavailable from banks and other credit-providers fearful of losing their capital without such protection, and it provides protection against the business risks of expanding into unfamiliar territory new locations, products or services which is critical for encouraging risk taking and creating and ensuring economic growth. Beyond the commercial world, insurance is vital to individuals. Lack of insurance coverage would leave individuals and families without protection from the uncertainties of everyday life.

Life, health, property and other insurance coverages are essential to the financial stability, well-being and peace of mind of the average person .Insurance is a financial product that legally binds the insurance company to pay losses of the policyholder when a specific event occurs. The insurer accepts the risk that the event will occur in exchange for a fee, the premium. The insurer, in turn, may pass on some of that risk to other insurers or reinsures. Insurance makes possible ventures that would otherwise be prohibitively expensive if one party had to absorb all the risk. Advancements in medicine, product development, space exploration and technology all have become a reality because of insurance. Consumers buy automobile insurance to cover both their cars and people who may be injured in accidents. Homeowners and renters buy insurance policies to protect their property and protect themselves from liability. People buy life and health insurance to protect themselves and their families from financial disaster in case of illness or death .In some instances governments require businesses to purchase insurance. Known as financial responsibility requirements, government-mandated purchases of insurance is intended to ensure that injured parties will be compensated. Businesses also require other businesses to buy insurance. For instance, a retailer may require its suppliers to carry product liability insurance. Similarly, hospitals may require doctors to carry medical malpractice insurance, and mortgage firms often require their clients to insurance the properties used as collateral. Distribution of insurance is handled in a number of ways of insurance. services such as the evaluation and implementation of alternative means of funding for potential losses, risk management strategies and claims management.

1.1.5 Insurance Brokers

Insurance brokers typically work for the policyholder in the insurance process and act independently in relation to insurers. Brokers assist clients in the choice of their insurance by presenting them with alternatives in terms of insurers and products. Acting as agent for the buyer, brokers usually work with multiple companies to place coverage for their clients. Brokers obtain quotes from various insurers and guide clients in determining the adequate policy from a range of products. In some markets, there are distinctions among brokers depending upon the types of insurance they are authorized (licensed) to intermediate all lines of insurance, property

and casualty or life/health coverage. While most, if not all, brokers are active in commercial lines, some also intermediate personal lines policies. There are also distinctions between retail brokers, who negotiate insurance contracts directly with consumers, and wholesale brokers, who negotiate insurance contracts with retail brokers and agents, but not directly with consumers. Reinsurance brokers solicit, negotiate and sell reinsurance cessions and retrocessions on behalf of ceding insurers seeking coverage with reinsurers. Reinsurance brokers can also be involved in a reinsurers retrocession of parts of its risk.As a technical matter, a brokers role may change during an insurance transaction and over the course of an on-going relationship with a client. Many brokers sometimes act as an agent of the insurer and other times as a broker of the client when assisting a client with insuring its risk exposures through an insurance contract with a traditional carrier. For example, the broker acts on behalf of the client when negotiating the contract of insurance and placing the policy. When the broker provides services that would otherwise be handled directly by the insurance company, such as premium payments and claims handling, the broker is essentially acting as agent for the company. This unique concept makes the insurance process more efficient for both the policyholder and the insurer. : 1.1.6 Innovative marketing Insurance intermediaries bring innovative marketing practices to the insurance marketplace. This deepens and broadens insurance markets by increasing consumers awareness of the protections offered by insurance, their awareness of the multitude of insurance options, and their understanding as to how to purchase the insurance they need. Dissemination of information to consumers Intermediaries provide customers with the necessary information required to make educated purchases/ informed decisions. Intermediaries can explain what a consumer needs, and what the options are in terms of insurers, policies and prices. Faced with a knowledgeable client base that has multiple choices, insurers will offer policies that fit their customers needs at competitive prices. Dissemination of information to the marketplace Intermediaries gather and evaluate information regarding placements, premiums and claims experience. When such knowledge is combined with an intermediarys understanding of the needs of its clients, the intermediary is well-positioned to encourage and assist in the development of new and innovative insurance products and to create markets where none have

existed. In addition, dissemination of knowledge and expansion of markets within a country and internationally can help to attract more direct investment for the insurance sector and related industries. 1.1.7 Sound competition Increased consumer knowledge ultimately helps increase the demand for insurance and improve insurance take-up rates. Increased utilization of insurance allows producers of goods and services to make the most of their risk management budgets and take advantage of a more competitive financial climate, boosting economic growth. 1.1.8 Spread insurers risks Quality of business is important to all insurers for a number of reasons including profitability, regulatory compliance, and, ultimately, financial survival. Insurance companies need to make sure the risks they cover are insurable and spread these risks appropriately so they are not susceptible to catastrophic losses. Intermediaries help insurers in the difficult task of spreading the risks in their portfolio. Intermediaries work with multiple insurers, a variety of clients, and, in many cases, in a broad geographical spread. They help carriers spread the risks in their portfolios according to industry, geography, volume, line of insurance and other factors. This helps insurers from becoming over-exposed in a particular region or a particular type of risk, thus freeing precious resources for use elsewhere. 1.1.9 Reducing costs Reduce costs for insurers, broker services also reduce the insurance costs of all undertakings in a country or economy. Because insurance is an essential expense for all businesses, a reduction in prices can have a large impact on the general economy, improving the overall competitive position of the particular market. Of course, the insurance cycle of hard and soft markets can have a significant impact on the benefits both good and bad of increased availability. Generally, however, increased availability benefits the consumer by leading to product competition, price competition, and improved services. By reducing insurance costs across markets, intermediaries make an important contribution to improving the economic conditions in a country.

1.1.10 CRM for Insurance Insurance is a complex product where personalized service achieved through an intimate knowledge of customers and their histories with an insurance company is critical to making sales. As insurance options broaden and products grow more complex, customers seek superior, personalized service more than ever. With the repeal of the Glass-Steagal Act in 1999, insurance companies face increased competition from banks and brokerages. With the enactment of the Patriot Act, insurance companies need to ensure that they "know their customers." The situation grows even more urgent when one considers the bad economy that hurts investment income; as well as the extremely narrow window of time wherein an insurance call center representative, agent or broker holds a customer's attentionand a valuable opportunity to cross-sell or up sell. It is at this precise moment that these individuals have the chance to maximize these fleeting sales opportunities. To maintain competitive edge and viability, insurance companies are focusing intently on delivering superior customer service. A comprehensive customer relationship management (CRM) strategy addresses three imperatives: Sum providing a unified enterprise customer view; Sum retaining customers with great services; and Sum controlling costs as the insurance company in question expands. These three imperatives form a unique interplay that maximizes sales while reducing operational coststhe equation for improved revenue growth and profitability 1.1.11 Gain a Unified Enterprise View of Customers Many insurance companies, there is a wealth of valuable information about individual customers: you know who they are and what insurance products and services they buy. You know their history of claims and the status of their accounts. You may even know about their opinions and preferences, or whether promotions have attracted their response. But can you unify all these fragments into a complete portrait of this most important asset: your customer? For insurance companies, "know thy customer" can be a challenging imperative. Customer data may be divided among product lines, or among legacy claims, policy and billing systems. If an insurance company has expanded its customer base through mergers or acquisitions, its information may be even more fragmented.

CRM in insurance starts with a single, complete, real-time enterprise view, so that call center representatives, agents and brokers can understand and serve every facet of individual customers. This level of holistic, personalized service can be the differentiating factor that retains good customers and reduces churnan important goal, given that customer retention is profitable and new customer acquisition can be expensive. 1.1.12 Retain Customers with Great Service Most insurance companies understand the virtues of a single, complete, real-time enterprise view of individual customers, and they have made great progress towards providing this view at customer touch-points throughout the enterprise. But it's critical to note that this view should not be regarded as an end in and of itselfrather, it is a rich foundation to be used as a basis for a deeper, more advanced level of customer understanding. Predicting customer behavior for improved sales efforts is a three-step process. Sum Profiling insurance companies first build a profile of information about customers who have previously exhibited a targeted behavior. Profiling requires rich customer data, including enterprise-wide transactional and behavioral data such as call center and account holdings information. Other data sources include key performance indicators and third-party demographics. An example of profiling might be building a profile for customers who bought new homeowners' insurance policies in the past two years. The goal is to determine characteristics to look for in future buyers. 1.1.13 Sum Modeling: By using data mining on the profile information, analytics can uncover the most relevant characteristics of the customer segment being analyzed. For example, the most significant attributes of customers who bought homeowners' insurance are gleaned from the profile via the data mining application. Such characteristics comprise the model of customers most likely to purchase homeowners' insurance in the future

1.1.14 Sum Scoring: Insurance companies use predictive analytics to score existing customers by comparing them to the model. Those most closely matching the characteristics included in the model are most likely to exhibit the targeted behavior. Given the example above, an insurance company can rate its customers numerically to indicate how closely they match the model of the person most likely to buy homeowners' insurance. Once customers are scored and the analysis pinpoints customers most strongly correlating with the model, an insurance company can address those customers, especially the top prospects. Customers scoring a nine or above might receive a special promotion for homeowners' insurance, while a separate, incentive-based offer might entice those scoring seven and above. Customer analysis and behavior prediction can also be used to identify life events and/or extended relationships, which can be highly useful in improving profitability from individual customers. For example, life events often trigger changes in insurance coverage that can be anticipated and leveraged with targeted offerings. You might identify health insurance policyholders who have recently had new children and offer them an attractive life insurance policy. Using a single, complete, real-time enterprise view coupled with customer analysis and behavior prediction, you may be able to identify good drivers among your auto policyholders who have children turning sixteen. It's time for a targeted offer to add the family's new driver to the policy.

1.1.15 CRM Invades the Insurance Sector with Amazing Results

The current scenario in the insurance industry is a complex and competitive environment tinged with little stability. The major hassle the industry faces is obtaining clients. This is due to the fact that the big fish in the insurance industry dominate the sector. It has become increasingly difficult for this particular sector to gain profits while curtailing costs. Acquisitions, mergers, have all contributed to the difficulty insurance agents and other professionals from this industry face. Long considered a job only restricted to insurance companies, selling insurance policies has now become an option for banks as well. This has resulted in a lot of increased as well as unwelcome competition. Customers tend to lose out as they are not buying from the right

provider. In addition to this the Internet has increased the pressure for insurance companies in capturing the market. Why Opt for CRM Insurance Software? Insurance CRM decreases the time required to make product changes A holistic integrated customer view Targeted marketing Customer retention Increased growth Increased policy sales Increased insurance market share CRM Insurance integrates marketing with other operations Efficient distribution channels are secured CRM provides the chance to reduce operating expenses
It provides for more effective and efficient communication

It improves the response time It increases customers satisfaction Insurance application queries/ claim status queries can be answered sooner It reduces the time that is normally taken for printing Policy mailing time is reduced It decreases overall costs Aids the call centre activities Insurance CRM guarantees lead management

1.1.16 Insurance CRM Gains Since most insurance companies are not adequately equipped to help their agents deal with customer centered problems CRM insurance enables insurance organizations to survive in a tough economic climate by using the data the insurance company has on the existing customers and then use it to increase the level of profitability. It manages to enhance your customer relationships based on customer's unique requirements. A wealth of customer data is available but insurance companies do not have it readily assessable nor is it coherent. CRM insurance software creates a holistic view of the customer which helps eliminate customer irritation experienced due to this, when they need to identify themselves repeatedly. Insurance CRM assists Customer Service Representatives when they are not able to properly access customer data. Having ample customer information on hand enables a CSR to be more confident of dealing with the client. It removes the chance of errors. CRM enables customers themselves to do research on products, have answers to their questions etc. In addition to this policyholders or beneficiaries can check their claim status, change their account information, submit complaints etc. Insurers find that CRM is assisting them in their marketing efforts as well through a comprehensive understanding of the client base. CRM aids the insurance companies by ensuring that campaigns are more affective. CRM manages to put the insurance company in a position where it is able to let staff know which customers are likely to leave and move to competitors. This helps staff take the required steps to stop this from happening and prevents the loss of valuable policy holders.

2.1 INDUSTRY PROFILE 2.1.1 Insurance Companies in India

In India insurance is a national matter, in which life and general insurance is yet a booming sector with huge possibilities for different global companies, as life insurance premiums account to 2.5% and general insurance premiums account to 0.65% of India's GDP. The Indian Insurance sector has gone through several phases and changes, especially after 1999, when the Govt. of India opened up the insurance sector for private companies to solicit insurance, allowing FDI up to 26%. Since then, the Insurance sector in India is considered as a flourishing market amongst global insurance companies. However, the largest life insurance company in India is still owned by the government. The history of Insurance in India dates back to 1818, when Oriental Life Insurance Company was established by Europeans in Kolkata to cater to their requirements. Nevertheless, there was discrimination among the life of foreigners and Indians, as higher premiums were charged from the latter. In 1870, Indians took a sigh of relief when Bombay Mutual Life Assurance Society, the first Indian insurance company covered Indian lives at normal rates.In 1912, the Govt. of India passed two acts - the Life Insurance Companies Act, and the Provident Fund Act - to regulate the insurance business. National Insurance Company Ltd, founded in 1906, is the oldest existing insurance company in India. Earlier, the Insurance sector had only two state insurers - Life Insurers i.e. Life Insurance Corporation of India (LIC), and General Insurers i.e. General Insurance Corporation of India

(GIC). In December 2000, these subsidiaries were de-linked from parent company and were declared independent insurance companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited andUnitedIndiaInsuranceCompanyLimited.

Insurance Companies In India

Bajaj Allianz Life Insurance Company Limited Birla Sun Life Insurance Co. Ltd HDFC Standard life Insurance Co. Ltd ICICI Prudential Life Insurance Co. Ltd. ING Vysya Life Insurance Company Ltd. Life Insurance Corporation of India Max New York Life Insurance Co. Ltd Met Life India Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited SBI Life Insurance Co. Ltd Tata AIG Life Insurance Company Limited Reliance Life Insurance Company Limited.

 Aviva Life Insurance Co. India Pvt. Ltd. Shriram Life Insurance Co, Ltd. Sahara India Life Insurance Bharti AXA Life Insurance Future Generali Life Insurance IDBI Fortis Life Insurance Canara HSBC Oriental Bank of Commerce Life Insurance AEGON Religare Life Insurance DLF Pramerica Life Insurance Star Union Dai-ichi Life Insurance Agriculture Insurance Company of India Apollo DKV Insurance Cholamandalam MS General Insurance HDFC Ergo General Insurance Company ICICI Lombard General Insurance IFFCO Tokio General Insurance National Insurance Company Ltd New India Assurance Oriental Insurance Company Reliance General Insurance Royal Sundaram Alliance Insurance

 Shriram General Insurance Company Limited Tata AIG General Insurance United India Insurance Universal Sompo General Insurance Co. Ltd Apollo Munich Health Insurance Bajaj Allianz General Insurance ia Bharti AXA General Insurance Export Credit Guarantee Corporation of India IDBI Federal Life Insurance IndiaFirst Life Insurance L&T General Insurance Max Bupa Health Insurance Raheja QBE General Insurance Company Ltd. SBI General Insurance Star Health Insurance

2.1.2 Aviva Life Insurance Co. India Pvt. Ltd. Aviva insurance group in UK with a history dating back to 1696, today stands as one of the leading provider of life and pension products to Europe and other parts of the world. The history of Aviva Life Insurance India starts at 1834 during nationalization when Aviva was the largest foreign insurance group in terms of the compensation paid by the Indian Government. In 1995 Aviva was the first foreign insurance company to start its representative office in India. At present in Aviva Life Insurance India, the Aviva group is a 26% share holder and the Dabur group holds 74% shares in the joint venture.

Aviva Life Insurance India has 40 Branches in India, including rural branches supporting its distribution network. With over 27,000 Financial Planning Advisers (FPAs) and the Financial Health Check (FHC) programme it has been successful in setting up its position in the Indian market. The FHC is a free service administered by the FPAs which analyses the customer's long-term savings and insurance needs and depending on the life stage and earnings of the customer it selects the proper insurance product for them.

Aviva Life Insurance India initiated the concept of Bancassurance in India and at present it has Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, 11 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra Pradesh and Maharashtra and one regional Bank in Sikkim. This has helped to distribute Aviva products in nearly 378 towns and cities across India. Aviva Life Insurance India offers more modern Unit Linked and Unitized With Profit money products to the customers. Following the IRDA guidelines, with effect from 1 July 2006, these unit - linked products have been modified. The products of Aviva insurance group of India are: LifeLong LifeSaver or EasyLife Plus Young Achiever LifeBond and LifeBond Plus PensionPlus LifeShield Freedom LifePlan LifeBond5 The fund management operations of Aviva Life Insurance India is controlled from Mumbai and the fund options includes Unitized With-Profits Fund and four Unit Linked funds: Protector Fund - The fund comprises of debt securities in the range of 60-100%, equities in the range of 0-20% and money market and cash in the range of 0-20%.

Secure Fund - The fund comprises of debt securities in the range of 50-100%, equities in the range of 0-20% and money market and cash in the range of 0-20%. Balanced Fund - The fund comprises of debt securities in the range of 50-90%, equities in the range of 0-45% and money market and cash in the range of 0-10%. Growth Fund - The fund will comprise of debt securities in the range of 0-50%, equities in the range of 0-85% and money market and cash in the range of 0-20%. These fund provides investment security to the capital of the customers. Through their association with Basix (a micro financial institution) and other NGOs, Aviva Life Insurance India have been able to reach out to those underprivileged who had no access to insurances till day.

In Aviva Life Insurance India , thus , by combining protection and long term savings the customers can safeguard and provide life products for their family with their changing needs.

2.1.3 Life Insurance in India India Life Insurance industry came into being with the establishment of Life Insurance Corporation (LIC)in India in 1956. Till the time Insurance Regulatory and Development Authority(IRDA) Act was implemented in the year 1999, private companies were controlled by the LIC of India. Since 1999 onwards the market was opened for operations of private companies also in the insurance sector 2.1.4 Growth of Indian Life Insurance Sector The life insurance sector of India has added up to 4.1% of the GDP in 2009, a considerable growth was recorded since the time the sector was opened for the private companies. The contribution in FDI by the life insurance segment was recorded at US $ 1.3 billion, even though the government is likely to increase the FDI cap limit from 26% to 49%, a bill of which is pending at the Rajya Sabha.

The year 2009-10 also saw private sector insurance company, Aviva Life Insurance establishing nine unit-linked plans, in line with the recent IRDA guidelines featuring enhanced and higher internal rate of return (IRRs).

As per the data provided by the IRDA, the businesses of the life insurance companies had a growth of 22% at US$ 12 billion in April-November 2009-10, in comparison to the US$ 9.8 billion during the same period last year. Such a huge sale of single premium policies led the industry to record a raise of 53.25% in November 2009 alone. With the registration of IndiaFirst Life Insurance Company Limited, a joint stake life insurance company encouraged by Bank of Baroda and Andhra Bank of India and Legal & General Middle East Limited, UK, the total number of of life insurers registration with the Insurance Regulatory Development Authority (IRDA) has increased to 23. According to industry body, Life Insurance Council, The life insurance industry had earlier been anticipated to grow by 15% in the year 2009 - 10 and surpass the US$ 54.1 billion mark in total premium income by March-end. This growth in premium income includes new business as well as renewals, driven by increasing awareness on the value of getting insured. The US$ 41-billion Indian insurance industry made a grand return with better performances in the April-November 2009 period. Life insurance in India recorded the first year premium (inclusive of Single Premium) segment accounting to US$ 24 billion. FDI Policy in Indian Life Insurance Industry The FDI limit in the insurance sector has been capped at 26% for the foreign marketeers but the government is thinking to increase it to 49% and a bill of this offer is pending at the Rajya Sabha. The LIC is still the major company in the life insurance sector but with such an emergence of the private companies, providing a range of moneymaking policies and investment chances for people from all walks of life the situation is fast changing. The Unit Linked Investment Plans (ULIP) offering life cover as well as scope for savings and investment deserves extra acknowledgement in this issue. Furthermore, with minimum lock-in period of three years such plans are subjected to avoid miss usage of important tax benefits.

Major Indian Life Insurance Companies In the public sector of the India life insurance, the Life Insurance Company of India functions solely. Some of the private companies operating in the life Insurance Sector are: ICICI Prudential Life Insurance Birla Sun Life SBI Life Tata AIG Life Aviva Life Insurance Kotak Mahindra Life Insurance Bajaj Allianz Life Inga Vyasya Life Insurance

2.1.5 National Insurance Company Ltd National Insurance Company Ltd India, one of the leading public sector insurance company dealing with general insurance business. Their new and customized policies ensures the catering of even specialized insurance requirements of almost every sector or industry in the Indian Economy. National Insurance Company Limited India with its headquarters in Kolkata, was incorporated in 1906. After the passing of the General Insurance Business Nationalization Act in 1972, over 30 companies, both Indian and foreign were included with it. National Insurance Company India became a subsidiary of General Insurance Corporation of India (GIC) and after the General Insurance Business (Nationalization) Amendment Act, 7th August 2002, it was delinked from GIC and henceforth it is operating as a Government of India undertaking.

National Insurance Company India with its nearly 1000 offices offers easy insurance services to every part of the country from remote rural areas to townships and metropolitan cities. The company's foreign operational bases are in Nepal and Hong Kong. Presently, National Insurance Company India with its more than 180 policies

caters the diverse insurance requirements of their customers. The gross direct premium income of the company has grown to 3523.67 crores rupees in the financial year 20052006.

National Insurance Company India marketing of its Insurance services.

has ties with commercial banks, Non Banking

Financial Institutions, Automobile Manufacturers, NGOs and State Governments for

2.1.6 Policies offered:

Personal Line Insurance insurance of person and property would include Personal Accident, Mediclaim, Critical Illness, Amartya Siksha Yojana , Motor Policy - Two Wheelers, Householders Policy, Niwas Yojana , Personal Liability, Professional Indemnity for a Doctor / Lawyer and others.

Rural Line Insurance insurance policies devised for the rural people and weaker section of urban society like Cattle / Livestock Insurance, Brackish Water Prawn Insurance, Sericulture Insurance, Horticulture/Plantation Insurance, Kisan Agriculture Pumpset Insurance and others.

Industrial Line Insurance these insurances covers various risks faced by the industry and are of two types, Project Insurance like Erection All Risk Insurance and Contractor's All Risk Insurance and Operational Insurance like Fire policy, Machinery Insurance policy, Electronic Equipment Insurance policy and Consequential Loss (Fire) policy.

Commercial Line Insurance the company offers different options to protect the commercial organizations against the loss of or damage to property and liability arising out of an action or inaction in the course of the commercial activity.

The leading credit rating agency of India CRISIL gave National Insurance Company India AAA rating. The company launched some new covers, PARIVAR Mediclaim for Family, VIDYARTHI-Mediclaim for Students, UCO Medi + Care Bima Policy, Star National Swasthya Bima Policy, VARISTHA Mediclaim for Senior Citizens. National Insurance Company India , along with its Bancassurance scheme partner Bank of India launched a " BoI National Swasthya Bima" policy in 2007

2.1.7 India Insurance Policy Insurance Policy India provides the clients with the details required for the coverages in the policy, date of commencement of the policy and their adopting organizations. It plays a important role in the Indian insurance sector. The Insurance Policy India is regulated by certain acts like the Insurance Act(1938), the Life Insurance Corporation Act(1956), General Insurance Business (Nationalization) Act(1972), Insurance Regulatory and Development Authority (IRDA) Act(1999). The insurance policy determines the covers against risks, sometime opens investment options with insurance companies setting high returns and also informs about the tax benefits like the LIC in India. There are two types of insurance covers: 1. Life insurance 2. General insurance 2.1.8 Life insurance This sector deals with the risks and the accidents affecting the life of the customer. Alongside, this insurance policy also offers tax planning and investment returns. There are various types of life Insurance Policy India

a. Endowment Policy b. Whole Life Policy c. Term Life Policy d. Money-back Policy e. Joint Life Policy

f. Group Insurance Policy g. Loan Cover Term Assurance Policy h. Pension Plan or Annuities i. Unit Linked Insurance Plan General Insurance this sector covers almost everything related to property, vehicle, cash, household goods, health and also one's liability towards others. The major segments covered under general Insurance Policy India are: a. Home Insurance b. Health Insurance c. Motor Insurance d. Travel Insurance Some of the well known Insurance Policy India are: Social Security Group Scheme a scheme covering the age group of 18-60 years and an insurance of Rs.5000 for natural death and of Rs.25000 on due to accidental death. Shiksha Sahyog Yojana a scheme providing an educational scholarship of Rs.300 per quarter per child is given for a period of four years. Jan Arogya Bima Policy a scheme for the adults upto the age of 45 years is ` 70 and for children it is ` 50. The limit coverage is fixed at Rs.5000 per annum. Mediclaim Insurance Policy a scheme covering the age group from 5-80 years with a tax benefit of up to Rs 10,000. Jana Shree Bima Yojana this is a coverage of Rs 2,000 on natural death and Rs 50,000 for accidental death. The premium amount is fixed at ` 200 for single member. Videsh Yatra Mitra Policy a scheme covering medical expenses during the period of overseas travel. Bhagya Shree Child Welfare Bima Yojana a scheme covering one girl child in a family upto the age of 18 whose parents age does not exceed 60 years, with a premium of Rs.15 per annum. Raj Rajeshwari Mahila Kalyan Yojana a scheme providing protection to woman in the age group of 10 to 75 years with an insurance of ` 25,000 and premium Rs.15 per annum. Ashray Bima Yojana a scheme covering workers in case of loss of jobs.

Personal Accident Insurance Scheme for Kissan Credit Card a scheme covering all the KCC holders up to an age of 70 years. Insurance coverage includes 50,000 for accidental death and 25,000 for partial disability.

2.1.9 Service Sector in India

Service Sector in India today accounts for more than half of India's GDP. According to data for the financial year 2006-2007, the share ofservices, industry, and agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 percent respectively. The fact that the service sector now accounts for more than half the GDP marks a watershed in the evolution of the Indian economy and takes it closer to the fundamentals of a developed economy.

Services or the "tertiary sector" of the economy covers a wide gamut of activities like trading, banking & finance, infotainment, real estate, transportation, security, management & technical consultancy among several others. The various sectors that combine together to constitute service industry in India are: Trade Hotels and Restaurants Railways Other Transport & Storage Communication (Post, Telecom) Banking Insurance Dwellings, Real Estate Business Services Public Administration; Defence Personal Services Community Services

There was marked acceleration in services sector growth in the eighties and nineties, especially in the nineties. While the share of services in India's GDP increased by 21 per cent points in the 50 years between 1950 and 2000, nearly 40 per cent of that increase was concentrated in the nineties. While almost all service sectors participated in this boom, growth was fastest in communications, banking, hotels and restaurants, community services, trade and business services. One of the reasons for the sudden growth in the services sector in India in the nineties was the liberalization in the regulatory framework that gave rise to innovation and higher exports The boom in the services sector has been relatively "jobless". The rise in services share in GDP has not accompanied by proportionate increase in the sector's share of national employment. Some economists have also cautioned that service sector growth must be supported by proportionate growth of the industrial sector, otherwise the service sector grown will not be sustainable. In the current economic scenario it looks that the boom in the services sector is here to stay as India is fast emerging as global services hub.

2.2 COMPANY PROFILE

Birla Sun Life Insurance Co. Ltd

2.2.1 About Birla Sun Life Insurance Company Birla Sun Life Insurance Company (BSLI) is a joint venture between the Aditya Birla Group and Sun Life Financial Inc of Canada and was established in India in the year 2000.Aditya Birla Group has established a strong financial presence in India through Aditya Birla Financial Services Group with expertise in a wide array of products which include wealth management, consumer finance, broking, lending and private equity. The Aditya Birla Group is common and trusted name in India with decades of presence in sectors ranging from cement, metals, textile, telecom and retail business to name a few. Sun Life Financial is a Canadian based financial services conglomerate with a major chunk of its business in theinsurance domain with a history of over 140 years and hence provides the much needed expertise to this joint venture in India. Birla Sun Life Insurance Company has a vast distribution network of almost 600 branches across India reaching out t more than 1500 towns. The already established companies of the Aditya Birla Financial Services Group give it the expertise and reach to service and add more consumers to the life insurance business. The company has a wide array of life insurance products catering to all aspects of a persons life from traditional plans to unit linked market plans. They have had Virendra Sehwag and Yuvraj Singh as their branch ambassadors endorsing life insurance products of Birla Sun Life.

Vision To be a leader and role model in a broad based and integrated financial services business.

Mission To help people mitigate risks of life, accident, health, and money at all stages and under all circumstances Enhance the financial future of our customers including enterprises

2.2.2Salient Features of BSLI Company

Birla Sun Life Insurance initiated the Unit Linked Life Insurance Solutions in India. In 4 years, BSLI has made its position very strong as a leading player in the private The company's focus has been on investment linked insurance products, supported Web-enabled IT systems for superior customer services First to have issued policies over the Internet Corporate governance and a high degree of transparency in all business practices and

Life Insurance Industry.

with protection products to uphold leadership in product modernization

procedures

2.2.3BSLISolutions Birla Sun Life Insurance Company provides individual and other solutions to customers

based on their varied needs. So whether the customer wants long term protection or short term protection plans, the company has it all for their clients. The insurance solutions offered by the company are:

Protection Solution Retirement Solutions Children's Future Solutions Health & Wellness Solutions Wealth with Protection Solutions The protection solutions are ideal for someone who wishes to separate their insurance

and investment needs. The terms of the insurance are made in a way so that it deals with the most basic need of life insurance, which is the provision of life cover. The children's future solutions aim to take care of all the financial needs of the child in the best way possible. The health and wellness solutions have provisions to take care of any financial emergency that may come up in the family.
2.2.4BirlaSunLifeInsuranceProducts

Birla Sun Life Insurance Term Plan is ideal for those who are seeking to get insurance benefits at a lower price. The plan covers all liabilities and provides complete security to the clients. The minimum age of a customer seeking this insurance must be 18 years and the maximum age must be 55 years. Premium payment options range from monthly to annual to quarterly to semi annually depending on the policies. Listed below is some of Birla Sun Life Insurance saving policies:

Birla Sun Life Product Table:

Retirement/Pension Plan Retirement/Pension Plan Retirement/Pension Plan Retirement/Pension Plan Child Plan Child Plan Child Plan Term plan Term Plan Term Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Health Plan Health Plan

BSLI Dream Life Plan BSLI Classic Life Plan BSLI Immediate Income Plan BSLI Secure 58 Plan BSLI Dream Child Plan BSLI Classic Child Plan BSLI Bachat Child Plan BSLI Term Plan BSLI Premium Back Term BSLI Networth Term BSLI Rainbow Plan BSLI Platinum Advantage BSLI Dream Endowment Plan BSLI Money Back Plus Plan BSLI Guaranteed Bachat Plan BSLI Bachat Endowment Plan BSLI Bachat-Money BSLI Classic Endowment Plan BSLI Health Plan BSLI Universal Health Plan

1. Birla Sun Life Insurance PrimeLife 2. Birla Sun Life Insurance Dream Plan 3. Birla Sun Life Insurance Gold-Plus II

4. Birla Sun Life Insurance SimplyLife 5. Birla Sun Life Insurance Flexi Life Line 6. Birla Sun Life Insurance Supreme-Life 7. Birla Sun Life Insurance LifeCompanion 8. Birla Sun Life Insurance Flexi Save Plus 9. Birla Sun Life Insurance Flexi Cash Flow 10. Birla Sun Life Insurance Saral Jeevan Plan 11. Birla Sun Life Insurance PrimeLife Premier 12. Birla Sun Life Insurance ClassicLife Premier Following are the Life Insurance plans offered by Birla Sun life Insurance Company Ltd. Protection Solution: Currently available products to purchase 2.2.5Birla 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.

2.2.6Birla 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 2.2.7Networth Birla Sun Life Insurance High Term Plan : Its gives your family total financial security while allowing you to modify the plan and also rewards you for leading a healthy lifestyle.

2.2.8Child Insurance Plan 2.2.9Birla Sun Life Insurance (Bachat) Child Plan : Its plan that secures your child's future even in the event of an untimely demise of the life insured. 2.2.10Birla Sun Life Insurance Children's Dream Plan : Its a unit-linked policy, which provides you guaranteed returns, 0% allocation charges, and option to double or triple the guaranteed maturity. 2.2.11Birla Sun Life Insurance Classic Child Plan : It is a plan that secures your childs future, and gives you the freedom to direct your savings to our range of 10 Investment Funds. Wealth with Protection Solutions 2.2.12 BSLI Rainbow : An insurance plan that gives you a guaranteed return on maturity that is tax free and the financial security of a life cover.

2.2.13 Birla Sun Life Insurance Platinum Advantage Plan : This Plan gives you the advantage to choose from 2 Investment Options Guaranteed Option and Self-Managed Option. With the Guaranteed Option your investments in the Platinum Advantage Fund are safeguarded from any downsides in the capital markets. 2.2.14 Birla Sun Life Insurance Dream Endowment Plan : A plan that gives you a Guaranteed Savings Amount on the date of your choice along with a range of options to provide for your family's future financial protection.

2.2.15 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. 2.2.16 Birla Sun Life Insurance Guaranteed Bach at Plan : Its 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. 2.2.17 Birla Sun Life Insurance Bach at Endowment Plan : Its provide for your childs education, to buy a house or other needs in the future 2.2.18 Birla Sun Life Insurance Bach at Money back Plan : This insurance plan secures your familys future by not just growing your regular savings, but by providing you money at regular intervals as well. You also get the security of a life cover through the tenure of the policy.

2.2.19 Birla Sun Life Insurance Classic Endowment Plan : Its plan that lets you channel your savings to our range of ten investment funds, to suit your investment needs, and also provides financial protection for your family.

2.2.20Health & Wellness Solutions

2.2.21Birla Sun Life Insurance Health Plan : Its plan allows you to spend time cheering up your loved ones and not worry about paying for the best care.

2.2.22 Birla Sun Life Insurance Universal Health Insurance : Its provide your entire family with the best medical care without putting a strain on your long-term savings. Retirement Solutions: 2.2.23 Birla Sun Life Insurance Immediate Income Plan : BSLI Immediate Income Plan that puts your savings into an annuity to give you a regular income in your retirement years. 2.2.24 Birla Sun Life Insurance Secure 58 Plan : You can be rest assured that you have a guaranteed corpus of funds at the threshold of retirement, plus the accumulated survival benefit that you collect over the years 2.2.25 Birla Sun Life Insurance Classic Life Plan: It is a plan that gives you complete control over your investments by directing your premiums to our range of 10 Investment Funds along with a range of rider options to give your family the security of financial protection.

2.2.26Birla Sun Life Insurance Dream Life Plan : It is a plan that suits your needs and gives you the freedom to live life confidently. 2.2.27 Birla Sun Life Insurance Gold-Plus II : Its 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.

2.2.28 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.

2.2.29 Birla Sun Life Insurance Saral Jeevan Plan : In todays fast life its 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. 2.2.30 Birla Sun Life Insurance Supreme-Life : Its a unit linked non-participating plan providing 8-fund options to choose. It gives a choice of two death benefits. 2.2.31 Birla Sun Life Insurance Dream Plan : Its a unit-linked policy, which provides you guaranteed returns, 0% allocation charges, and option to double or triple the guaranteed maturity.

2.2.32 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.

2.2.33 Birla Sun Life Insurance SimplyLife : It ensures a lifetime of tax-free investments to fulfill the needs of your dear ones. Its a market related plan provides you a good death benefit amount. 2.2.34 Birla Sun Life Insurance PrimeLife Premier

Its a single time investment with top up options. It keeps you hassle free and provides you guaranteed returns at regular intervals. 2.2.35 Birla Sun Life Insurance PrimeLife : It is a single premium policy gives you the benefit of life insurance and investments as well. Its a non-participating ULIP policy. 2.2.36 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. 2.2.37 Birla Sun Life Insurance Flexi Save Plus This plan will give you the choices of 3 fund options, maturity ages & guaranteed returns of 3%. 2.2.38 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.

2.2.39 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. Its a short term investment plan provides you the option of 5 years or 10 years term period.

2.2.40 Birla Sun Life Insurance Freedom 58 Its a non- participating ulip plan. It helps you accumulate your premiums and the investment return there of into a corpus of your retirement.

2.2.41 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 prepone/postpone it

2.2.42 BOARD OF DIRECTORS

Mr. Kumar Mangalam Birla Mr. Ajay Srinivasan Mr. Jayant Dua Mr. Bishwanath Puranmalka Mr. Dikran Ohannessian Mr. Gian Gupta Dr. Rakesh Jain Mr. Suresh Talwar Mrs. Tarjani Vakil Mr. Venkatesh Mysore