PRATHAMESH VIJAY

BANDIVADEKAR
MMS 1ST YEAR
16003
INSURANCE AS AN INVESTMENT TOOL IN INDIAN MARKET
INTRODUCTION

 As finance is the lifeblood for all economic activities, one aspect of

financial arena, which plays a very important role, is the Insurance.
Insurance is the outcome of Man’s search for safety and security,
and to find out ways and means to minimize the hardship, which are
beyond his control
 Insurance industry is one of the corner stone of any economy and
financial System. Insurance industry contributes its major part in
increasing the saving and the fund collected is utilized in
developmental programs.
 The Financial sector in our country is in the process of change with
the objective o the overall growth of the economy. The insurance
sector as every one knows constitutes a very important and vital
financial intermediary for the growth of the economy.
Objectives

 To know the importance and awareness of investment in India

 To know the risk perception investment relating to the financial
management
 To know the elements of risk and returns in insurance
 To examine the performance of the plan
Research Methodology

 Sample size : 100 respondents

 Sampling Method : Random sampling
 Data analysis tool : Structured Interview
 Sample Unit : Individual
PRIMARY SOURCE OF DATA:
 Primary data are those collected by the investigator himself for the first time and thus
they are original in character, they are collected for a particular purpose. A well-
structured questionnaire was personally administrated to the selected sample to
collect the primary data.
SECONDARY SOURCE OF DATA:
 Secondary data are those, which have already been collected by some other
persons for their purpose and published. Secondary data are usually in the shape of
finished products. Two types of secondary data were collected for the preparation of
the project work: Internal Data was generated from company’s brochures, manuals
and annual reports. External Data, on the other hand, was generated from research
books and internet (websites).
Limitations of the study

 Lack of awareness about ULIP funds in rural areas. BSLI insurance

advisor difficult to convince them.
 Lack of co-operation between the branches.
 Was not able to cover all data.
 Lack of expertise in that field.
Company profile

 Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Indian
conglomerate Aditya Birla Group, and Sun Life Financial Inc., an international financial services
organization’s from Canada. BSLI has a customer base of over two and half million policy holders
and has attained recognition as the 3rd Most Trusted Life Insurance Company in the 'Most Trusted
Brands' survey 2013 conducted by Brand Equity (The Economic Times Group) with Neilsen. The
Company offers a range of insurance services comprising protection solutions, children's future
solutions, savings with protection solutions, wealth with protection solutions, health and wellness
solutions, and retirement solutions. It has a distribution reach in over 500 cities through its network
of over 550 branches, more than 1,05,000 empaneled advisors and over 100 partnerships with
corporate agents, brokers and banks. Birla Sun Life Insurance Company Limited is a joint venture
between the Indian conglomerate Aditya Birla Group, and Sun Life Financial Inc., an international
financial services organization’s from Canada.
 CEO: Pankaj Razdan (2013–)
 Founder: Aditya Vikram Birla
 Founded: 2000
 Headquarters: Mumbai
 Total assets: 300 billion INR (May 2015)
 Parent organizations: Aditya Birla Group, Aditya Birla Financial Services Ltd
INSURANCE

Functional definition:
 In the words of R.S.Sharma “Insurance is a Co-operative devices to
spread the loss caused by particular risk over a number of persons
who were exposed to it and who agree top insure themselves
against the risk”
Contractual Definition:
 According to E.W.Patterson, “Insurance is a contract by which one
party, for a consideration called a premium, assures a particular risk
of other party ad promises to pay to him or his nominee a certain or
ascertainable sum of money on a specified contingency.
Insurance in Indian Financial
System
 In India insurance is in practice since 12th century as per the records.
The first life insurance company to operate in India the Oriental Life
Insurance company was established in 1818 in Calcutta. However it
was a British company. The first Indian Insurance company, the
Bombay Mutual Life Assurance Society started its operation in 1871.
The Indian Life Insurance company Act was passed in
1928.Subsequently, both of these Acts were merged and the
insurance Act 1938 was promulgated.
 Independent India amended the Insurance Act in 1950 and in 1956,
the then fiancé minister of the nation Mr. C D Deshmukh
nationalized all insurance companies, 154 Indian Insurance
companies and 75 provident societies. Finally the life insurance
Corporation was born on 1st September 1956.
The advantages of Life Insurance

 Life insurance is brought not because someone is going to die, but

because someone is going to live.
 Life insurance means peace of mind.
 Life insurance promises payment of the full sum assured from the
moment the first premium is paid.
 Life insurance encourages regular savings and guards against
extravagances.
 In most cases life insurance possesses a cash value after the first
three years
COMPETITORS INFORMATION IN
INSURANCE INDUSTRY
 LIC -Fully owned by Government.
 Postal Life Insurance.
Private Players -
 Baja Allianz Life Insurance Co. Ltd.
 Birla Sun Life Insurance Co. Ltd.
 HDFC Standard Life Insurance Co. Ltd.
 ICICI Prudential Life Insurance Co. Ltd.
 ING Vysya Life Insurance Co. Ltd.
 Max New York Life Insurance Co. Ltd.
 MetLife India Insurance Co. Pvt. Ltd.
In which company you have
invested
Interpretation:
According to this project out of 100 respondent 39% invest in LIC, 51%
invest in BSLI , 2% invest in Reliance insurance, 7% invest in Bajaj Allianz’s
and 1% of respondent other companies
Frequency Percent Valid Percent Cumulative
Percent

Valid LIC 39 39.0 39.0 39.0

BSLI 51 51.0 51.0 90.0
Reliance
insurance
2 2.0 2.0 92.0

Bajaj Allianz’s
7 7.0 7.0 99.0

if any other
1 1.0 1.0 100.0

Total 100 100.0 100.0

How did you come to know the life
insurance?
 Interpretation: According to this project out of 100 respondent
people get the information 3% on T.V.advertisement, 4% on news
paper and magazines,61% company advisors, 26% reference(
friends and relatives). According to this project shows that more
people get information from company advisors.
Frequency Percent Valid Cumulative Percent
Percent
Valid T.V. Advertisement 3 3.0 3.0 3.0

News paper/magazines’ 4 4.0 4.0 7.0

Company advisor(agent) 61 61.0 61.0 68.0

reference(friends relatives) 26 26.0 26.0 94.0

if any other 6 6.0 6.0 100.0

Total 100 100.0 100.0
What factor consider while making
the ULIP in BSLI
Interpretation:
According to this project out of 100 respondents 9% considered for making ULIP
is flexibility, 11% considered for security, 43% for returns 14% for full withdrawals and 23%
not respondent It shows people considered ULIP for the purpose of returns.

Frequency Percent Valid Cumula

Percent tive
Percent

Valid flexibility 9 9.0 9.0 9.0

Security 11 11.0 11.0 20.0
Returns 43 43.0 43.0 63.0

Full 14 14.0 14.0 77.0

withdraw
al
Not 23 23.0 23.0 100.0
respond
Total 100 100.0 100.0
Are you satisfied with the
performance of the ULIP in BSLI ?
Interpretation:
According to this project out of 100 respondent satisfaction of ULIP in ICICI
Prudential is 58% respondents are highly satisfied, 33% respondents are only satisfied,
8% respondents are moderate and rest of 1% respondents highly dissatisfied.

Frequency Percent Valid Percent Cumulative Percent

Valid Highly satisfied 58 58.0 58.0 58.0

Satisfied 33 33.0 33.0 91.0

Moderate 8 8.0 8.0 99.0

Highly dissatisfied 1 1.0 1.0 100.0

Total 100 100.0 100.0

Are you satisfied with the advisor of
BSLI?
 Interpretation:
According to this project out of 100 respondent satisfaction
of advisors work is 58% respondents says excellent, 27% respondents
says good, 15% respondents says average(medium).

Frequency Percent Valid Percent Cumulative

Percent

Valid Excellent 58 58.0 58.0 58.0

Good 27 27.0 27.0 85.0

Average 15 15.0 15.0 100.0

Total 100 100.0 100.0

OBSERVATION

 It was found that 94% male and 16% female are participating in this project.
 It was found that occupation of respondents is business man 10%, professional,
14%,student 25% and others are 51%
 It was found that the peoples choice of insurance, is investment is 8%, security
15%,savings 11%,tax benefits 8%, returns 27%, and financial future need is 31%, it
shows that the people think more for financial future needs.
 It was observed that peoples are interested to invested in 39% in LIC, 51% in
BSLI, 2% in Reliance, 7% in Baja Allianz and rest of the peoples other companies
i.e. Birla sun life, HDFC, ING VYSYA etc. it indicates that more peoples are
interested to invest in BSLI life insurance company.
 It was found that people get the information is 3% on T.V.advertisement, 4% on
news paper and magazines,61% company advisors, 26% reference( friends and
relatives) it shows that people get more information from company advisors.
 awareness of ULIP in BSLI life insurance is more 74%,
Learning experience

 The environment in which the company operates is that of a highly

competitive energetic atmosphere. And as a fresher that is an excellent
start to begin ones corporate experience especially in the service
sector (life insurance) with. This in plant training has provided a vital
learning element in the career of fresher's. As it has enabled us to
realize most of the classroom training obtained so far in a real life
corporate environment. And so there has been a link developed
between theory and practices. Through this in plant training students
can experience the kind of break that awaits us in the corporate world.
 This exercise also gets us to understand the amount of dedication and
determination that professionals would have to put in, in their every
day’s work because the decisions they take is a matter of loss or profit
for the company. And mistakes are generally not entertained in the
quality circles.
SUGESTUONS

 For BSLI to have a larger market share it has to widen the customer
base, so it should come up with intensive market strategy and
aggressive publicity stunts such as:


 Deployment of addition sales force for proper marketing.

 Continuous bombardment of Advertisement by BSLI as a Life Insurance
 Company for a common man as well as for well educated and good
salaried people.
 Hoardings in and around the important areas(public concentrated
areas)
 The company should concentrate on the people aged between 18-25
for individual and also the age category 35-55 for family.
Conclusion

 To conclude, the project results highlight some important facts,

though BSLI may be comparatively competitive with other
companies ULIP. The choice of people investing in insurance is more
as 31% and awareness of BSLI ULIP is more as 74%, 61% people get
information from company advisors and satisfaction level of ULIP is
more as 53% it will shows that ULIP is grow more in future days.
Bibliography

 www.investopedia.com
 www.google.com
 www.insurance.com
 wikipedia.org
 scribd.com
 moneycontrol.com
THANK YOU