INTRODUCTION

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.
• 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.

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How life insurance works

There are three parties in a life insurance transaction; the insurer, the insured,
and the owner of the policy (policyholder), although the owner and the insured are
often the same person. For example, if Mr. Rajan buys a policy on his own life, he is
both the owner and the insured. But if Mrs. Anita, his wife, buys a policy on Rajan’s
life, she is the owner and he is the insured. The owner of the policy is called the
grantee (he or she will be the person who will pay for the policy). Another important
person involved is the beneficiary.

The beneficiary is the person or persons who will receive the policy proceeds
upon the death of the insured. The beneficiary is not a party to the policy, but is
designated by the owner, who may change the beneficiary unless the policy has an
irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary
must agree to changes in beneficiary, policy assignment, or borrowing of cash value.

The policy, like all insurance policies, is a legal contract specifying the terms
and conditions of the risk assumed. Special provisions apply, including a suicide
clause wherein the policy becomes null if the insured commits suicide within a
specified time for the policy date (usually two years). Any misrepresentation by the
owner or insured on the application is also grounds for nullification. Most contracts
have a contestability period, also usually a two-year period; if the insured dies within
this period, the insurer has a legal right to contest the claim and request additional
information before deciding to pay or deny the claim.

The face amount of the policy is normally the amount paid when the policy
matures, although policies can provide for greater or lesser amounts. The policy
matures when the insured dies or reaches a specified age. The most common reason to
buy a life insurance policy is to protect the financial interests of the owner of the
policy in the event of the insured's demise. The insurance proceeds would pay for
funeral and other death costs or be invested to provide income replacing the
deceased's wages. Other reasons include estate planning and retirement. The owner (if
not the insured) must have an insurable interest in the insured, i.e. a legitimate reason
for insuring another person’s life. The insurer (the life insurance company) calculates

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the policy prices with an intent to recover claims to be paid and administrative costs,
and to make a profit.

Working of Insurance

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.

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.

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DLF pramerica Life Insurance Company Ltd. is a joint venture between DLF
Limited & Prudential International Insurance Holdings Limited. DLF Pramerica
believes in delivering a secure & enrich life to there customers.

MetLife One of the fastest growing insurance company in India is MetLife. The
company started its operations in between 2000-2001. They have a range of various
products to offer.

ICICI Prudential ICICI Bank with Prudential plc, both well known & strong
financial institutions came together in December 2000 to form an insurance company
- ICICI Prudential Life Insurance.

Max New York Life Max India’s leading multi business corporation & New York
Life joined there hands in 2000.The company started there operations in 2001. The
company is involved in Life & health products.

Bajaj Allianz Bajaj who are into iron & steel, finance, insurance & etc and Allianz
who provides financial services when came together they formed Bajaj Allianz Life
Insurance Company.

Bharti AXA Bharti AXA Life Insurance is a joint venture between Bharti & AXA.
The company started its functionality in December 2006 and they always believe to
be a strong financial institute.

HDFC Standard Life HDFC Standard Life Insurance is a joint venture between
Housing Development Finance Corporation Limited & a Group of Standard Life
Plc.The Company started commencing its business in December 2000.

AEGON Religare AEGON Religare Life Insurance Company Ltd is a joint venture
with AEGON, Religare and Bennett, Coleman & Company a part of Times Group.
AEGON Religare Life Insurance Company was launched in July 2008.

Kotak Mahindra A joint venture of Kotak Mahindra group & Old Mutual plc is
known as Kotak Mahindra Old Mutual Funds. The Company started commencing its
business in 2001. The company aim is to help customers in making there financial
decisions.

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Future Generali Life Future Generali is a joint venture between Future Group of
India & Italy based Generali Group. Future Generali in India is into both Life & Non
Life businesses in India. The company wants to provide a financial security to all.

SBI Life SBI Life Insurance Company Limited is a joint venture between State
Bank of India and BNP Paribas Assurance. It is present in more than 41 countries
across the world. SBI Life offers a variety of plans in life insurance and pension.

Shriram Life Shriram Life Insurance Company is a joint venture between Shriram
Group and Sanlam Group. Shriram Group is one of India’s most esteemed financial
services & Sanlam Group is one of the largest life insurance providers of South
Africa.

TATA AIG The TATA Group and American International Group Inc together
formed Tata AIG Life Insurance Co. Ltd.Tata Group holds 74% stake in the insurance
venture with AIG holding the balance 26%. They started their operations in April
2001.

Aviva Aviva, one of UK's largest insurance company and world's 5th largest
insurance group. It was one of the first international insurance company to set up its
office in India in the year 1995. They introduced the concept of banc assurance in
India.

IDBI Fortis IDBI Fortis Life Insurance Co. Ltd is a joint venture between three
financial institutes; they are IDBI Bank, Federal Bank and Fortis. They introduced
there plans in March 2008. IDBI owns 48% equity while Federal Bank and Fortis own
26% equity each.

Sahara The Sahara Pariwar stepped into the insurance business by launching Sahara
India Life Insurance Co. Ltd. They received the IRDA license in February 2004 and
started their operations in October 2004. They are the first solely owned private sector
insurance company in India.

ING VYSYA ING Life was established in 2001 as a joint venture between ING
Insurance International B.V. (INGI), ING Vysya Bank Limited and GMR Industries
Limited. At present, INGI, Exide Industries Limited, Ambuja Cement Ltd, Enam
Group are the joint venture partners.

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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.

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 nationalized. LIC formed
by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5
crores from the Government of India.

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 GENESIS

Insurance in India can be traced back to the Vedas. For instance,

Yogakshema, the name of Life Insurance Corporation of India's corporate
headquarters, is derived from the Rig Veda. The term suggests that a form of
"community insurance" was prevalent around 1000 BC and practiced by the Arya.

Insurance, in its modern form, first arrived in India through a British company
called the Oriental Life Insurance Company in 1818, followed by the Madras
Equitable Life Insurance Society in 1829 and the Bombay Assurance Company in
1870. They insured the lives of Europeans living in India. The first company that sold
policies to Indians was the Bombay Mutual Life Assurance Society starting in 1871.
The first general insurance company, Triton Insurance Company Limited, was
established in 1850. For the next hundred years, both life and non-life insurance were
confined mostly to the wealthy living in large metropolitan areas.

Regulation of insurance companies began with the Indian Life Assurance

Companies Act, 1912. In 1938, all insurance companies were brought under
regulation when a new Insurance Act was passed. It covered both life and non-life
insurance companies. It clearly defined what would come under life and non-life
insurance business. The Act also covered, among other deposits, supervision of
insurance companies, investments, commissions of agents and directors appointed by
the policyholders. This piece of legislation lost significance after the insurance
business was nationalized in 1956 (life) and 1972 (non-life) respectively. When the
market was opened to private participation in 1999, the earlier Insurance Act of 1938
was reinstated as the backbone of the current legislation of insurance companies, as
the IRDA Act of 1999 was superimposed on the 1938 Insurance Act.

Insurance business was nationalized in 1956 with the Life Insurance

Corporation of India (LIC) designated the sole provider – its monopolistic status
was revoked in 1999.

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There were several reasons behind the nationalization decision:

 Firstly, the government wanted to channel more resources to national

development programs.

 Secondly, it sought to increase insurance market penetration through

nationalization.

 Thirdly, the government found the number of failures of insurance companies

to be unacceptable. The government argued that the failures were the result of
mismanagement and nationalization would help to better protect
policyholders.

In 2006, the Indian insurance market ranked 19th globally and was the 5th largest
in Asia.

The insurance industry in India has come a long way since the time when
businesses were tightly regulated and concentrated in the hands of a few public sector
insurers. Following the passage of the Insurance Regulatory and Development
Authority Act in 1999, India abandoned public sector exclusivity in the insurance
industry in favour of market-driven competition. This shift has brought about major
changes to the industry. The inauguration of a new era of insurance development has
seen the entry of international insurers, the proliferation of innovative products and
distribution channels, and the raising of supervisory standards. By mid-2004, the
number of insurers in India had been augmented by the entry of new private sector
players to a total of 28, up from five before liberalization. A range of new products
had been launched to cater to different segments of the market, while traditional
agents were supplemented by other channels including the Internet and bank
branches. These developments were instrumental in propelling business growth, in
real terms, of 19% in life premiums and 11.1% in non-life premiums between 1999
and 2006.

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 There are good reasons to expect that the growth momentum can be sustained. In
particular, there is huge untapped potential in various segments of the market. While
the nation is heavily exposed to natural catastrophes, insurance to mitigate the
negative financial consequences of these adverse events is underdeveloped. The same
is true for both pension and health insurance, where insurers can play a critical role in
bridging demand and supply gaps. Major changes in both national economic policies
and insurance regulations will highlight the prospects of these segments going
forward.

Last one decade of reforms in India have started yielding the results in the Indian
economy. The Government's resolve to push the reforms measures further, less
bureaucratic hurdles, investors' friendly business environment all put together have
given tremendous boost to the industries in terms of FDI and investments from FIIs.

The service industry in India has achieved a phenomenal growth in the recent past
and among them, Insurance is one sector, which has witnessed high decibel growth
thanks to the investor friendly regulator in the name of Insurance Regulatory
Development Authority (IRDA). The growth the market has achieved in terms of 18-
20% in life insurance and 15-17% in non-life insurance stands testimony to that.

Looking back at the history, the ride had not been so smooth to the public sector
players like LIC, GIC and its subsidiaries. For a long time, the insurance policies are
not bought but sold in the country because of so many odd reasons like low awareness
level, aversion towards the products as such, superstitious beliefs and less diverse
product portfolio. The monolith in the life insurance sector, Life Insurance
Corporation of India had been basking in its past glory and enjoying the monopolistic
situation in the market.

Even the General Insurers like GIC and its subsidiaries were able to reach the
people with very few products out of many products in their kitty offering little or no
options to the customers. In 1956, when the Government of India nationalized the
business of life insurance, there were 245 private insurance companies operating in
the country. And sixteen years later, when the same happened to General insurance,
there were 106. But the seeds were sown as far back as 1993, when the Malhotra
Committee headed by former Finance Secretary and Ex-RBI Governor R.N.Malhotra

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was created to recommend the directions the Indian industry should take. By 1994,
the Committee was ready with its report.

In April 2000, Insurance Regulatory Development Authority (IRDA) came into

being as a statutory body to regulate the industry and to keep an eye on the private
players. The mission of IRDA is to protect the interests of the
policyholders, regulate, promote and ensure orderly growth of the insurance industry
and for matters connected with the matter. After April 2000 a number of private
players have entered the market and with this the insurance sector has reached new
heights. The number of people insured, penetration and the general awareness has
increased manifolds.

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 COMPANY PROFILE

KARVY STOCK BROKING LIMITED

The karvy group was formed in 1983 at Hyderabad, India. KARVY is a

premier integrated financial services provider, and ranked among the top five in the
country in all its business segments, services over 16 million individual investors in
various capacities, and provides investor services to over 300 Corporate.

KARVY covers the entire spectrum of financial services such as Stock

broking, Depository Participants, Distribution of financial products like mutual funds,
bonds, fixed deposit, Merchant Banking & Corporate Finance, Insurance Broking,
Commodities Broking, Personal Finance Advisory Services, placement of equity,
IPOs, among others.

Karvy has a professional management team and ranks among the best in
technology, operations, and more importantly, in research of various industrial
segments.

Karvy computer share limited is India’s largest registrar and transfer agent
with a client base of nearly 500 blue chips corporate, managing over 2 crores
accounts. Karvy stock brokers limited, member of national stock exchange of India
and the Bombay stock exchange, rank among the top five stock brokers in India with
over six lakhs active account it ranks among the top five depositary participants in
India, registered with NSDL and CSDL, karvy commorade, member of NCDEX and
MCX ranks among the top three commodities brokers in the country. A Karvy
insurance broker is registered as a broker with IRDA and ranks among the top five
insurance agent in the country. Registered with AMFI as a corporate agent, karvy is
also among top mutual fund mobilize with over Rs 5000 crores under management.
Karvy realty services, which started in 2006, have quickly established itself as a
broker, who adds value in the realty sector. Karvy global offer niche off to off shoring
services to U.S clients.

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Karvy has 575 offices in 375 locations across India and overseas at Dubai and New
York. Over 9000 highly qualified people staff karvy.

Quality Policy

To achieve and retain leadership, Karvy shall aim for complete customer satisfaction,
by combining its human and technological resources, to provide superior quality
financial services. In the process, Karvy will strive to exceed Customer's expectations.

Quality Objectives

The Quality Policy of Karvy is to:

• Build in-house processes that will ensure transparent and harmonious relationships
with its clients and investors to provide high quality of services.

• Establish a proper relationship with its investor service agents and vendors that will
help in keeping up its commitments to the customers.

• Provide high quality of work life for all its employees and equip them with adequate
knowledge & skills so as to respond to customer's needs.

• Continue to uphold the values of honesty & integrity and strive to establish
unparalleled standards in business ethics.

• Use state-of-the art information technology in developing new and innovative

financial products and services to meet the changing needs of investors and clients.

• Strive to be a reliable source of value-added financial products and services and

constantly guide the individuals and institutions in making a judicious choice of same.

• Strive to keep all stake-holders (shareholders, clients, investors, employees,

suppliers and regulatory authorities) proud and satisfied.

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Board of Directors:

Mr. C. Parthasarathy

Chairman & Managing Director

Mr. M. Yugandhar

Managing Director

Mr. M S. Ramakrishna

Director

Mr. Prasad V Potluri

Director

Mr. Sunil Mitchigen

CEO

KARVY GROUP OF COMPANIES

 Karvy Consultants Limited

 Karvy Stock Brokering Limited

 Karvy Investors Services Limited

 Karvy Computer share Pvt Limited

 Karvy Global Services Limited

 Karvy Comtrade Limited

 Karvy Insurance Broking Limited

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 Karvy Reality & Services (India) Limited

IMPORTANT CLINTELE

 Reliance Industries

 Indian Oil Corporation

 IDBI

 LIC Mutual fund

 Hindustan Lever

 Principal Mutual Fund

 Marico Industries

 Patni Computers

 Morgan Stanley

ACHIEVEMENTS

 First ISO-9002 Certified Registrar in India

 A Category-I-Merchant banker

 A Category-I-Registrar to Public Issues

 Ranked as “The Most admired Registrar” by MARG

 Handled the largest-ever Public Issues-TCS

 Handled over 700 Public Issues as Registrars

 Largest network of Branches and Business Associates

 Largest independent distributor of financial products

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  Among the top 5 Stock Brokers

 Among the top 3 Depositary Participants

PRODUCTS PROFILE

The company deals with the following business activities

1. Stock Broking
2. Mutual Fund Services
3. De-mat account opening
4. Depositary participants Services(TIN/PAN)
5. Financial Product Services(investment)
6. Corporate finance and Merchant banking
7. Insurance Broking
Life

Non life

8. IT Enabled Services
9. Registrars and Transfer agents.

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 OBJECTIVES OF THE STUDY

Primary objective:

 To study the comparative analysis of LIC and BSLI at KARVY STOCK

BROKING LTD.

Secondary objectives:

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

 To analyze the customer satisfaction regarding LIC and BSLI.

 To compare the features offered in various plans.

 To compare the companies using percentage analysis method.

 To suggest the best policy in BSLI and LIC

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 NEED OF THE STUDY

This study is widely useful to the company because it will help the company in taking
major decisions. This study would be beneficial for the dealer also.

 To find customer preference towards BSLI

 To find the factors which influence the customer response towards LIC.

 To analyze the changing behaviour of the customer towards Karvy.

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 SCOPE OF THE STUDY

The liberalization of the Indian insurance sector has been the subject of much
heated debate for some years. Despite innumerable delays the sector has been finally
opened to the private players. The key issue and possible trends are as follows:

• The threat of new players taking over the market has been overplayed.

• Nationalized players will continue to hold strong market share positions, but
they will be enough business for new products, better packaging and improved
customer service.

• Both new and existing players must explore new distribution and marketing
channels.

• A middle market approach tapping segments and niches thar are currently
under served will profitable for new entrants.

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 LIMITATIONS OF THE STUDY

 There are chances of biased information provided by the respondents.

 Many respondents were not willing to give their time.
 As the sample size is small compared to the total population,
therefore there can’t be full accurate.
 The time and area was limited.

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 BIRLA SUN LIFE INSURANCE COMPANY LIMITED

Birla Sun Life Insurance Company Limited is a joint venture between The
Aditya Birla Group, one of the largest business houses in India and Sun Life Financial
Inc., a leading international financial services organization. The local knowledge of
the Aditya Birla Group combined with the expertise of Sun Life Financial Inc., offers
a formidable protection for your future.

The Aditya Birla Group has a turnover of close to Rs. 119000 crores, with a
market capitalization of Rs. 133875 crores (as on 31st March 2008). It has over
100,000 employees across all its units worldwide. It is led by its Chairman - Mr.
Kumar Mangalam Birla. Some of its key companies are Hindalco, Grasim and Aditya
Birla Nuvo.

SUN LIFE FINANCIAL

Sun life financial –based in Canada-started in 1865.

It operates in all the important markets of the world like Canada, the United
States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India,
China and Bermuda.

Sun Life Financial Inc. has assets under management of over US$404.7 billion
(as on 31st March, 2008). It is a leading performer in the life insurance market in
Canada.

Birla Sun Life Insurance (BSLI) has been operating for 9 years. It has
contributed significantly to the growth and development of the life insurance industry
in India. It pioneered the launch of Unit Linked Life Insurance plans amongst the
private players in India. It was the first player in the industry to sell its policies
through the Banc assurance route and through the Internet. It was the first private
sector player to introduce a Pure Term plan in the Indian market. BSLI has covered

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more than 2 million lives since it commenced operations. And its customer base is is
spread across more than 1500 towns and cities in India. The company has a capital
base of Rs. 1274.5 crores as on 31st March 2008.

The growth and development of the life insurance industry in India and
currently ranks amongst the top 5 private life insurance companies in the country.

Known for its innovation and creating industry benchmarks, BSLI has several
firsts to its credit. It was the first Indian Insurance Company to introduce “Free Look
Period” and the same was made mandatory by IRDA for all other life insurance
companies. Additionally, BSLI pioneered the launch of Unit Linked Life Insurance
plans amongst the private players in India. To establish credibility and further
transparency, BSLI also enjoys the prestige to be the originator of practice to disclose
portfolio on monthly basis. These category development initiatives have helped BSLI
be closer to its policy holders’ expectations, which gets further accentuated by the
complete bouquet of insurance products (viz. pure term plan, life stage products,
health plan and retirement plan) that the company offers.

Add to this, the extensive reach through its network of 600 branches and
1,75,000 empanelled advisors. This impressive combination of domain expertise,
product range, reach and ears on ground, helped BSLI cover more than 2 million lives
since it commenced operations and establish a customer base spread across more than
1500 towns and cities in India. To ensure that our customers have an impeccable
experience, BSLI has ensured that it has lowest outstanding claims ratio of 0.00% for
FY 2008-09. Additionally, BSLI has the best Turn around Time according to LOMA
on all claims Parameters. Such services are well supported by sound financials that
the Company has. The AUM of BSLI stood at Rs. 8165 crores as on February 28,
2009, while as on March 31, 2009, the company has a robust capital base of Rs. 2000
crores.

ACHIEVEMENTS OF BSLI

 1st to introduce ULIP fund options.1st to launch illustrations so that customers

understand the products better before they buy.

 1st to issue NAVs of funds for better transparency.

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  1st to disclose portfolio on a monthly basis.

 1st to introduce “Free Look Period” and the same was made mandatory by
IRDA for all other Life Insurance Companies.

 MAJOR COMPETITOR AT A GLANCE LIC (LIFE INSURACE

CORPORATION)

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term
contracts and during the currency of the policy it requires a variety of services need
was felt in the later years to expand the operations and place a branch office at each
district headquarter. Re-organization of LIC took place and large numbers of new
branch offices were opened. As a result of re-organization servicing functions were
transferred to the branches, and branches were made accounting units. It worked
wonders with the performance of the corporation. It may be seen that from about
200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in
the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of
new business. But with re-organization happening in the early eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional
offices, 7 zonal offices and the corporate office. LIC’s Wide Area Network covers
100 divisional offices and connects all the branches through a Metro Area Network.
LIC has tied up with some Banks and Service providers to offer on-line premium
collection facility in selected cities. LIC’s ECS and ATM premium payment facility is
an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info
Centre have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai,
Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of
providing easy access to its policyholders, LIC has launched its SATELLITE
SAMPARK offices. The satellite offices are smaller, leaner and closer to the
customer. The digitalized records of the satellite offices will facilitate anywhere
servicing and many other conveniences in the future.

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LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past
records.

LIC has issued over one crore policies during the current year. It has crossed
milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy
growth rate of 16.67% over the corresponding period of the previous year.

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

Birla Sun Life Insurance Co. Ltd

Following are the Life Insurance plans that Birla Sun life Insurance Company
Ltd.

1. Birla Sun Life Insurance Term Plan - This plan can take care of your financial
commitments of yours towards your family by providing large cover at low cost.
Minimum age of entry for this plan is 18-55 and maximum maturity age is 70 years.

2. Birla Sun Life Insurance Premium Back Term Plan - This is a low cost life
cover promises you to refund the entire premium on maturity or death. Two options
are also there to choose 100% premium back or 125% premium back. Maximum term
period for this plan is 20 years.

3. Birla Sun Life Insurance Guaranteed Bachat Plan - It’s an non participating
endowment plan offers you guaranteed returns and chance to earn survival benefit
from the 3rd year onwards. You can withdraw this benefit each tear or can use it as to
pay the premium dues.

4. Birla Sun Life Insurance Money Back Plus Plan - This is also a non-
participating endowment plan, which gives you maturity and survival both benefits.
One remarkable point is that on every policy anniversary it increases your cover by an
equal amount of your base premium.

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5. Birla Sun Life Insurance Gold-Plus II - It’s an investment plan offering nine-
funding option to choose and 100% equity fund option also. Free unlimited switches
are given to you to manage your investments. This plan offers good liquidity to you.
6. Birla Sun life insurance Platinum Plus - It is a unit linked, non participating
insurance plan. In this plan, the investment risk is borne by the policyholder but not if
this policy is detained till maturity.

7. Birla Sun Life Insurance Saral Jeevan Plan - In today’s fast life it’s really easy
to buy an insurance plan, which you immediately can purchase just by providing three
health statements to the company. BSLI saral Jeevan is the best option to go for.

8. Birla Sun Life Insurance Supreme-Life - It’s a unit linked non-participating plan
providing 8-fund options to choose. It gives a choice of two death benefits.

9. Birla Sun Life Insurance Dream Plan - It’s a unit-linked policy, which provides
you guaranteed returns, 0% allocation charges, and option to double or triple the
guaranteed maturity.

10. Birla Sun Life Insurance Classic Life Premier - It will give you guaranteed
additions in the form of guaranteed units and a good choice of 8 investment funds are
also there. You are free to choose the term period of 10, 20, 30 or whole life.

11. Birla Sun Life Insurance Simply Life - It ensures a lifetime of tax-free
investments to fulfill the needs of your dear ones. It’s a market related plan provides
you a good death benefit amount.

12. Birla Sun Life Insurance Prime Life Premier - It’s a single time investment
with top up options. It keeps you hassle free and provides you guaranteed returns at
regular intervals.

13. Birla Sun Life Insurance Prime Life - It is a single premium policy gives you
the benefit of life insurance and investments as well. It’s a non-participating ULIP
policy.

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14. Birla Sun Life Insurance Flexi Cash Flow - For this policy you can pay lump
sum premium payment at regular intervals. It will give you 3% guaranteed returns on
net policy charges.
15. Birla Sun Life Insurance Flexi Save Plus - This plan will give you the choices
of 3 fund options, maturity ages & guaranteed returns of 3%.

16. Birla Sun Life Insurance Flexi Life Line - This would provide you a life long
cover till 100 years of age and will give you the option of tax-free partial withdrawals.

17. Birla Sun Life Insurance Single Premium Bond - This plan gives you the
opportunity to make one time investment with no medical tests and will also gives
you the facility of high entry age. It’s a short term investment plan provides you the
option of 5 years or 10 years term period.

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

19. Birla Sun Life Insurance Flexi Secure Life Retirement Plan II - This will
provide you the option to take a life cover or not. You can choose your retirement age
yourself whether you want to propone/postpone it.

20. Birla Sun Life Insurance Children's Dream Plan - It’s a unit-linked policy,
which provides you guaranteed returns, 0% allocation charges, and option to double
or triple the guaranteed maturity.

25
Various Plans offered by LIC are as follows:

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.

26
CHILDREN PLANS

1. Jeevan Anurag: Is plan designed for the children educational requirements. This
plan can be taken on the parent’s life. The basic sum assured is given immediately on
the death of the life assured during the term of the policy.

2. Jeevan Kishore: Is a plan which can be availed by the parent or grand parents of
the children. It is an endowment assurance plan for children of less than 12 years of
age.

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.

27
8. Marriage Endowment or Educational Annuity Plan: This is an Endowment
Assurance plan that provides for benefits on or from the selected maturity date to
meet the Marriage/Educational expenses of the named child.

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 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.

28
UNIT PLANS

1. Child Fortune Plus: Is a plan for children and to meet their educational needs. It’s
a unit linked plan with long term capital appreciation.

2. Fortune Plus : It is a unit linked assurance plan where premium payment term
(PPT) is 5 years and the premium payable in the first year will be 50% of total
premium payable under the policy.

3. Market Plus: Is a unit linked pension plan where after a specific period the
pension is paid.

4. Money Plus - I: Is a unit linked Endowment plan which has investment plus
insurance during the term and you can pay regular premiums.

5. Profit Plus : It is a unit linked Endowment plan where the premium payment term
(PPT) is limited to single lump sum, or uniformly over 3, 4 or 5 years.

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.

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

29
GOLDEN JUBLIEE PLAN
New Bima Gold: Where the premiums are paid back during the policy term in
installments, besides that life insurance cover is given during the also at the extended
term of the plan.

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

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).

30
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

 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.

31
(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:

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

Partial
Allowed after 3 complete policy years
Withdrawals

Investment
Protector, Builder, Enhancer
Funds

Death benefit

32
The sum assured is paid to the nominee upon the death of the life insured (parent)
The new life insured is the child and new owner is appointed as per your wishes.
The policy is continued as usual except.

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

 Mortality charges

 Surrender charges etc.

33
(3) Birla Sun Life Insurance Saral Jeevan Plan:

The saral jeevan plan provides the dual benefit of protection and investment. So it is
the ideal policy if you want to secure your life and build wealth at the same time.

Policy parameters

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.

34
(4) Birla Sun Life Universal Health Plan:

The universal health plan is in addition to the benefit amount payable under
each health benefit. This unique benefit helps you and your family with out of pocket
health related expenses.

Policy parameters

18 years – 65 years
Entry Ages

Term 3 years

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

frequency or monthly

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

Premium
4756 p.a., for 45- Rs. 6725 p.a., for 55- Rs. 9724 p.a.).

Benefits

 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 :

 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.
 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.

35
 Tax benefit

The premium paid by you up to 15000 (Rs.20000 for senior citizens) p.a. to
insure yourself and/or your family, is eligible for tax benefit under section 80D of
the income Tax Act, 1961, which is subject to amendments from to time.

Death/Maturity benefit

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

(5) BIRLA SUN LIFE RETIREMENT PLAN:

Policy parameters

18 years – 80 years
Entry Ages

Term 3years – 15 years

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

frequency or monthly

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

Premium
Rs. 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.

36
Tax benefits

Under section 80CCC and 10(10A)

Partially withdraw

You can do partially withdraw min. Rs.5000

SWOT ANALYSIS OF BSLI

STRENGTH:

 Multi-channel distribution and one of the largest distribution

networks in India.
 1 Million Policies sold within 3 and half years.
 Training process of the company is very strong.
 According to the change in surrounding environment like
changes in customer requirement.

WEAKNESS:

 Company does not penetrate on the rural market at a time.

 There is no plan for the low income group.
 Fees for the advisor is high than the other companies.

OPPORTUNITY:

Insurance market is very big, where company can expand its business
easily.
 It has many ULIP plans so it can grow in near future.

37
THREATS:

‘OLD HABITS DIE HARD’: Its still difficult task to win the confidence of
public towards private company.
 The company is facing major threats from LIC etc. -which is
an government company.
 Plans for all income groups are not available which can create adverse
effect later on the market share of the company.

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 yearly, Yearly.

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

38
Accident benefit equivalent to basic sum assured would be available by paying
appropriate additional premiums in that behalf. An amount equivalent to Sum Assured
become payable immediately.

2) Jeevan Saral plan of LIC:

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

Eligibility:

Particulars 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

39
The sum payable at maturity however differs for different entry ages and terms. On
Maturity the individual will receive maturity sum assured, plus Loyalty additions, if
any.
The specimen Maturity Sums Assured (MSAs) per Rs.100/- monthly premium are
given below for some of the ages and terms:

Age at
Policy Term
Entry

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

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.

3) New Jeevan Suraksha Plan

40
This pension plan is a vehicle for planning a life long pension and is also tax deferred.
Not only can you plan a pension for life with the help of these annuities but these
schemes also help you reduce your tax liability.

POLICY PARAMETERS

Particulars Min Max

Entry Age 18 70

vesting age 50 79

Deferment period 2 years 35 years.

Premium Rs. 250 p.m.

Yearly, half yearly,

Mode of payment
quarterly, monthly

FEATURES

(Amount in RS)

Particulars >=1,00,000 < >=2,00,000 < >= 5,00,000

41
 2,00,000 5,00,000

Rebates Available
3% 4% 5%
for Single Premium

Rebates Available
6% 7% 8%
for Annual Premium

DEATH BENEFITS

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

42
Vesting age 40-75

Sum Assured (min) NIL- (when no life cover is opted) Rs. 25,000 for Single
premium, Rs. 50,000 for Regular premium (When life cover is opted), (Max) Regular
Premium - 20 times of the annualized premium.

Minimum Deferment period 5 years

INVESTMENT FUND TYPES:

43
 Investment in
Short-term investments such as
Govt. / Govt. Investment in
money market
Fund Type Guaranteed Listed Equity
instruments(Including Govt.
Securities / Shares
Securities & Corporate Debt)
Corporate Debt

Bond Fund Not less than 80% 100% NIL

Not less than

Secured Fund Not less than 65% Not more than 85% 15% and not
more than 35%

Not less than

Balanced Fund Not less than 50% Not more than 70% 30% and not
more than 50%

Not less than

Growth Fund Not less than 20% Not more than 40% 60% and not
more than 80%

Comparison between some main products of BSLI and LIC

44
1) Comparison between BSLI’s Children dream plan and LIC’s
Marriage Endowment or Educational Annuity Plan:
 In BSLI plan policy term is 18 years less the age of child at entry.
 But in LIC plan policy term is 5-25 years.
 Premium paying frequency is almost same i.e. yearly , half yearly, quarterly,
monthly.

 In case of death benefit: in BSLI plan the sum assured is paid to the nominee
upon the death of the life insured (parent). The new life insured is the child and
new owner is appointed as per your wishes. In LIC plan if death occurs due to
accident then basic sum assured is payable on death immediately and further
premiums are not payable. After expiry of the term again basic sum assured +
bonus is payable.

 In BSLI fund value is guaranteed.

 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.

45
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%

46
4) Comparison between BSLI Platinum plus plan and LIC Market
plus plan:

 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

47
 Review of Existing Literature

For long, policyholders in India shunned term insurance plans in favour of

endowment policies — i.e. policies with a savings component. This is despite term
insurance being a crucial component of financial planning in all developed countries.

Term insurance is the most basic life insurance policy where the only benefit
is compensation to the nominee if the insured person dies. But in India the thought of
not getting the money ‘invested’ back on maturity has been pushing buyers towards
money back schemes and, in the past few years, unit-linked insurance plans (Ulips),
which boast of a seemingly irresistible combination of investment, insurance and tax
saving. Insurance agents too have actively been pushing Ulips as these have helped
pump up premium volumes. While the level of premium has gone up, the purchase of
protection has not been commensurate with the growth in the income.

All this is set to change with insurers effecting cuts in premium rates on term
insurance, particularly for high-value policies entailing a sum assured of over Rs 25
lakh. For instance, Birla Sun Life’s term insurance cover is available for an annual
premium as low as Rs 13,400 (excluding 10.3% service tax) for a sum assured of Rs 1
crore and a 20-year term, if the proposer is a healthy 30-year-old female.

This is in sharp contrast to a decade ago, when a 30-year-old would have to

spend at least Rs 50,000 for a Rs 1-crore cover. Because of such high premiums,
policyholders were reluctant to ‘spend’ without any scope for returns. Today, LIC
offers a Rs 1-crore cover for an annual premium of Rs 25,700. The new low-premium
regime marks a significant leap forward in terms of affordability, and is capable of
sparking considerable interest amongst insurance-seekers for pure protection-oriented
plans.

Touching new ‘lows’

Term insurance rates have come down primarily because of two reasons —
competition and increased life expectancy.

48
 Following the advent of Ulips, insurance policies have become so complex
that it is near impossible to compare products of two companies. The only product
that can really be compared is the term insurance policy. Moreover, the comparison
has been made easier with quite a few internet-based aggregators giving term
insurance quotes across companies. With over 17 life companies in the fray,
competition has pushed term insurance rates further down.

Decrease in mortality rates too has played its part. Most individuals buy term
insurance to cover any loss of revenue for their families if they die during their
earning years. With the mortality rates for those below 60 years coming down,
insurance companies have been able to sharply reduce term insurance premium.

In the past couple of years, the term insurance premium rates have declined by
almost 30%, with major private players like ICICI Prudential Life Insurance, Birla
Sun Life and HDFC Standard Life Insurance slashing their rates.

There are other factors for rate reduction as well. These include deepening
insurance penetration and the reduction in solvency margins prescribed by IRDA and
availability of better mortality data — which helps companies ascertain the risks
better. Insurers have been able to reduce cost of high-value policies further because
well-heeled urban Indians, enjoying the fruits of a blossoming economy, are seeing
marked improvement in mortality rates. Their life expectancy is enhanced by the
quality of their lifestyle and access to best-in-class healthcare facilities, leading to low
probability of death due to natural causes.

Consequently, insurance companies do not view offering them inexpensive

term cover as a risky proposition. This, coupled with the increasing demand from this
segment, has swollen the volumes, which in turn, have contributed to shrinking rates.
Therefore, life insurers’ margins for the term insurance portfolio haven’t come under
pressure.

Sustaining the premiums at these levels doesn’t seem likely to hit a roadblock in the
future and, in fact, there are signs that the market could see low-cost insurance scaling
new highs in the coming days. “Offering pure term insurance at cheaper rates for HNI
consumers is an idea, which we might see more of in the near future,” says Manik

49
Nangia, corporate vice-president and head, product management, Max New York Life
Insurance.
A win-win situation?

If indeed most people are living well beyond their earning years, does a term life
insurance pass the utility test from the policy holders’ perspective? While every
individual needs to carry out his/her own cost-benefit analysis before zeroing in on a
suitable policy, overall, these protection covers are worth buying, feel financial
planners, particularly for those falling in the high-income category. After all, their
family is used to a superior lifestyle, and should anything happen to the provider; the
term cover’s sum assured should act as an appropriate replacement for the income
lost.

Also, given the high level of indebtedness of today’s working class, either in the form
of home loans or auto loans, there is a risk that the family is left with a liability rather
than an inheritance if the breadwinner dies. For such individuals, variants of term
insurance cover — mortgage protection plans and credit shield — would ensure that
life insurance takes care of their outstanding loans.

The thumb rule for buying a protection cover dictates that the sum assured should be
equal to 100 times the insured’s monthly income. Though this estimate is generally
considered to be accurate, there is a view that to ensure complete peace of mind, the
basic term cover could be enhanced with riders like critical illness and disability
benefit. The rationale behind this argument is that in the event of an accident resulting
in severe physical impairment or a serious ailment, the term cover will be rendered
ineffective as it comes into play only after the insured’s death.

More complaints against insurance cos.

A seminar was held on Wednesday to help deal with consumer complaints

related to insurance service providers at the respective companies’ level itself. Rita
Bhattacharya, secretary of General Body Insurance Council, Mumbai, addressed those
present. An insurance ombudsman’s office has been set up in Chandigarh, which
deals with complaints from the city, Punjab, Jammu & Kashmir, Haryana and
Himachal Pradesh.

50
 Assistant secretary with the office, AC Keshav, stated that it was a facility,
which people could approach easily to raise insurance-related issues. He said
complaints against life insurance firms in the city had risen to 74 this year as
compared to 68 for 2008. Public sector insurance providers are higher on the
grievance list as compared to private firms, he added.

“The northern region had 619 life insurance-related complaints this year, which
numbered 517 last year,” said Keshav.

Officials from LIC of India, New India Assurance, Oriental Insurance, ICICI
Lombard, HDFC Standard life and SBI Life attended the seminar.

Lifeless premium collections upset coverage

29 Jul 2009, 0616 hrs IST, Paramita Chatterjee, ET Bureau

A 12 % jump in the number of life insurance policies sold in April-June this

year has resulted in only 0.95% rise in new premium collections as consumers
preferred smaller investments in an economic downturn.

“Sale of life insurance products remained flat during the first quarter of the
current fiscal year. Consumers are preferring to invest smaller amounts in insurance
products,” said Sanjay Kumar Jha, zonal manager for north and head of pension
business at Bajaj Allianz.

Life insurers collected Rs 14,456 crore as new premium in the first quarter of
this fiscal compared to Rs 14,320 crore during the corresponding period last year,
according to data released by the Insurance Regulatory and Development Authority
(IRDA). The companies sold 84.5 lakh policies in this fiscal year’s first quarter.

At a time when large salary hikes are on hold in corporate India and there is a
check on recruitment in several sectors, consumers are preferring to hold on to their
money.

51
 “This year, we have seen a month on-month improvement in performance. By
the end of the year, the industry will surely register a good growth rate,” said Reliance
Life Insurance president Malay Ghosh.

State-run Life Insurance Corporation, meanwhile, collected Rs 9,028 crore

from 59 lakh policies in the first quarter, up 20% over the corresponding period of last
fiscal. The public sector insurer sold 48 lakh policies in the year-ago period.

The 22 private life insurers sold 25.4 lakh policies in this period, collecting Rs
5,427 crore in premium from new products — a decline of 20% on Rs 6,795 crore
premium collections during the corresponding period last fiscal year.

“Insurance is not a priority when it comes to consumer spending. The

maximum sale of insurance products happens only during the last quarter of every
financial year when consumers look at ways to save tax,” said an executive at a
private insurer.

Insurance: A sunrise sector

29 Jul 2009, 0303 hrs IST, Pallavee Dhaundiyal Panthry, ET Bureau

The insurance sector in India offers immense growth opportunities. The

potential can be judged by the fact that today life insurance premiums account only
2.5% of the country's GDP, while general insurance premiums are at only 0.65%. The
sector has been thrown open for private participation, but the largest life insurance
company in India is still owned by the government, known as Life Insurance
Corporation.

While the rest of the world is in grip of an economic downturn and the year
2009 is witnessing a downtrend in the life insurance industry, with almost flat growth,
India for the very first time has been ranked amongst the top10 life insurance markets
worldwide.

The facts, data and reports for the year 2008-09 state that insurance sector
penetration, both in life and non-life segments, has improved since the time the sector
has been opened for private participation.

52
 RESEARCH METHODOLOGY

MEANING OF RESEARCH:

Research in common parlance refers to a search for knowledge. One can also
define Research as a scientific and systematic search for pertinence information on a
specific topic. In fact, research is an art of scientific investigation.

DEFINITION OF RESEARCH:

“Research is a systematized effort to gain new knowledge”

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 mode and sources of
secondary data are various magazines, books, newspapers, & websites etc.

Primary data

The primary data are those data which are collected afresh and for the first
time, and thus happen to be original in character.

Secondary data

The secondary data on the other hand, are those which have already been
collected by someone else and which have already been passing through the statistical
process.

53
Sample size

100 people of City were selected

Research

This research design used Purposive research

Statistical Tools

 Percentage method

 Ranking method

 Chi-Square Test

 ANOVA Table

 One Sample Run Test

54
 DATA ANALYSIS AND INTERPRETATION

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

TABLE4.1.1

Particulars Number of respondents Percentage

(%)

Yes 90 90%

No 10 10%

Total number of 100 100%

respondents

INFERENCE

90% people say that investment in insurance sector is good option and 10% are
saying not.

55
INVESTMENT IN INSURANCE SECTOR:

CHART4.1.1

INVESTMENT IN INSURANCE
SECTOR

10%

Yes
No

90%

56
2) Which company’s policy do you have?

TABLE4.1.2

Particulars Number of respondents Percentage

BSLI 40 40%

LIC 60 60%

Total number of 100 100%

respondents

INFERENCE

40% people have BSLI policies and 60% have LIC

57
PREFRENCE OF COMPANY POLICIES:

CHART4.1.2

70

60

50
number of respondents

40 B S LI
30 L IC

20

10

0
B S LI L IC
co m p a n y n a m e

58
3) Customer level of importance with reference to the plans given in the
company using ranking methodology.

TABLE4.1.3

Particular 5 4 3 2 1

Excellent Very good Good Poor Very poor

Whole life plan 50 30 20 08 02

Retirement plan 40 25 15 15 05

Children plan 70 20 05 03 02

Health plan 10 05 25 20 40

Golden jubilee plan 10 15 05 20 50

INFERENCE

Most of the people give importance for the children’s plan and they did give the
importance to golden jubilee plan.

CUSTOMER LEVEL OF IMPORTANCE:

59
 CHART4.1.3

4) How much percentage of interest you yield from it?

60
 TABLE4.1.4

Particulars Number of respondents Number of respondents

LIC BSLI

Below 5 % 0 0

5-8 % 14 6

8-12 % 42 28

Above12 % 4 6

TOTAL NUMBER OF 60 40
RESPONDENTS

INFERENCE

14% people of LIC and 6% of Birla are getting 5-8% R.O.I., 42% people of LIC and
28 of Birla are getting 8-12% interest.

PERCENTAGE OF INTEREST:

61
 CHART4.1.4

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

62
 TABLE4.1.5

Particulars Number of respondents Number of respondents

LIC BSLI

High interest 8 12

Good image of CO. 12 4

Growth of the CO. 18 12

Annual premium is 10 4
reasonable

Maturity benefits 12 8

TOTAL NUMBER OF 60 40
RESPONDENTS

INFERENCE

12% people of Birla are investing in this company due to its high interest, 18% people
of LIC say that they are investing in LIC due to growth of the company.

BENEFITS TO INVEST IN LIC AND BSLI:

CHART4.1.5

63
6) Do you think that investment in BSLI is better than LIC?

TABLE4.1.6

64
 Particulars Number of respondents

Yes 44

No 56

Total number of respondents 100

INFERENCE

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

BETTER INVESTMENT:

65
 CHART4.1.6

No. of respondents

Yes No

44

56

7) Reason for investing in BSLI

66
 TABLE4.1.7

Particulars Number of respondents

Guaranteed F.V. at maturity 10

Growth rate 16

More ULIP plan 8

Risk covered 4

All above 6

TOTAL NUMBER OF RESPONDENTS 44

INFERENCE

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

REASON FOR INVESTING IN BSLI:

67
 CHART4.1.7

N o . o f re s p o n d e n t s

6 G u a ra n t e e d F . V . a t
10 m a t u rit y
G ro w t h ra t e
4

M o re U L IP p la n

R is k c o ve re d
8

A ll a b o ve
16

8) Reason for investing in LIC

68
 TABLE4.1.8

Particulars Number of respondents

LIC have govt. stake 24

Brand loyalty of LIC 14

Low A.P. than BSLI 12

High return 6

TOTAL NUMBER OF RESPONDENTS 56

INFERENCE

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

REASON FOR INVESTING IN LIC:

69
 CHART4.1.8

High return, 6

Low A.P.than BSLI, LIC have

LIC have govt.sta
12 govt.stake, 24
Brand loyalty of

Low A.P.than BS

High return

Brand loyalty of LIC,

14

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

70
 TABLE4.1.9

Particulars Number of respondents Number of respondents

LIC BSLI

Yes 24 16

No 36 24

Total number of 60 40
respondents

INFERENCE

24% people of LIC are saying yes and 36% are saying no, 16% people of BSLI are
saying yes and 24% people are saying no about providing information

INFORMATION ABOUT THE NEW PRODUCT WEATHER

INFORMED:

71
 CHART4.1.9

40
35
30
25
NUM BER O F
20
R ES P O N D EN T S Y es
15
No
10
5 No
0
Y es
L IC
B S LI
COM PANY NAM E

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

TABLE4.1.10

72
 Particulars Number of respondents

Agree 20

Neutral 26

Disagree 14

Can’t say 40

Total number of respondents 100

INFERENCE

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

GROWTH RATE OF BSLI

CHART4.1.10

73
 40
35
30
25
NUM BER O F
20
RES P O NDENTS
15 S e rie s 1

10
5
0
A g re e N e u t ra lD is a g re Ce a n ’t s a y
O P T IO N S

Ranking method:

Customer level of importance with reference to the plans given in the company
using ranking methodology.

74
 Calculation:
TABLE4.1.11

Particular 5 4 3 2 1

Excellent Very good Good Poor Very poor

Whole life plan 50 30 20 08 02

Retirement plan 40 25 15 15 05

Children plan 70 20 05 03 02

Health plan 10 05 25 20 40

Golden jubilee 10 15 05 20 50
plan

WHOLE LIFE PLAN

75
 Rank Score No. of respondent Total

1 5 50 250

2 4 30 120

3 3 20 60

4 2 08 18

5 1 02 02

Total 100 450

Factors = Total value / no of respondents

= 450/100

= 4.5

RETIREMENT PLAN

Rank Score No. of respondent Total

76
 1 5 40 200

2 4 25 100

3 3 15 45

4 2 15 30

5 1 05 05

Total 100 380

Factors = Total value / no of respondents

= 380/100

= 3.8

CHILDREN PLAN

Rank Score No. of respondent Total

1 5 70 350

77
 2 4 20 80

3 3 05 15

4 2 03 06

5 1 02 02

Total 100 453

Factors = Total value / no of respondents

= 453/100

= 4.53

HEALTH PLAN

78
 Rank Score No. of respondent Total

1 5 10 50

2 4 05 20

3 3 25 75

4 2 20 40

5 1 40 40

Total 100 225

Factors = Total value / no of respondents

= 225/100

= 2.25

GOLDEN JUBILEE PLAN

Rank Score No. of respondent Total

1 5 10 50

2 4 15 60

79
 3 3 05 50

4 2 20 40

5 1 50 50

Total Rank 100Plans

Name of 215

I Children plan

II Whole life plan

III Retirement plan

IV Health plan

V Golden jubilee plan

Factors = Total value / no of respondents

= 215/100

= 2.15

Result:

80
Percentage Analysis Method

81
 It refers to a special kind of ratio. This is used for making comparison
between two or more series of the Data. It is denoted by percentage (%) .

Percentage Analysis = Number of Respondents___ *100

Total Number of Respondents

1) Investment in Insurance sector is good option?

Yes = 90/100*100

= 90

NO = 10/100*100

= 10%

2) Which company’s policy do you have?

LIC = 60/100*100

= 60%

BSLI = 40/100*100

= 40 %

CHI SQUARE ANALYSIS

82
AGE GROUP VERSES SERVICE

AIM: To find whether there is significance difference between the age group and
overall performance of the Branch.

Null Hypothesis: There is no significance difference between the age group and
overall performance of the Branch.

Alternative Hypothesis: There is significance difference between the age group and
overall performance of the Branch.

OBSERVED FREQUENCY

AGE GROUP 25-30 31-35 36-40 41-45 45- TOTAL

______________ ABOVE
OVERALL
PERFORMANCE
YES 16 32 8 14 28 98
NO 1 0 0 1 0 2
TOTAL 17 32 8 15 28 100

EXPECTED FREQUENCY

AGE GROUP 25-30 31-35 36-40 41-45 45-ABOVE

______________
OVERALL
PERFORMANCE
YES 16.66 31.36 7.84 14.7 27.44
NO 0.34 0.64 0.16 0.30 0.56

FORMULA:

ψ² = ∑ (Oi-Ei) ² / Ei

83
Where, ψ² = Chi-square

Oi = Observed Frequencies

Ei = Expected Frequencies

CALCULATION TABLE

O E O-E (O-E)^2 ((O-E)^2)/E

16 16.66 -0.66 0.4356 0.026
32 31.36 0.64 0.4096 0.013
8 7.84 0.16 0.0256 0.003
14 14.7 -0.7 0.49 0.033
28 27.44 0.56 0.3136 0.011
1 0.34 0.66 0.4356 1.281
0 0.64 -0.64 0.4096 0.64
0 0.16 -0.16 0.0256 0.16
1 0.30 0.7 0.49 1.633
0 0.56 -0.56 0.3136 0.56
TOTAL 4.36

N=(R-1)*(C-1)

= (2-1)*(5-1)

= 1*4

=4

LEVEL OF SIGNIFICANCE =.05

TABLE VALUE=9.488

CALCULATED VALUE < TABLE VALUE

ACCEPT NULL HYPOTHESIS

84
RESULT:

There is no significance difference between the age group and overall

performance of service station.

ANOVA TABLE

In the future, do you think BSLI will have high growth rate.

HIGH AGREE NEUTRAL DISAGREE CAN’T SAY

GROWTH

85
RATE

AGE-GROUP

25-30 3 5 4 17

31-35 3 6 3 8

36-40 7 4 6 9

41-45 5 8 1 2

45-ABOVE 2 3 0 4

NULL HYPOTHESIS (H0):

There is no significant different between the age-group and BSLI High growth rate in
future.

ALTERNATIVE HYPOTHESIS (H1):

There is significant different between the age-group and BSLI High growth rate in
future.

STEP 1:

TO FIND CORRELATION FACTOR:

X1 X1² X2 X2² X3 X3² X4 X4² X1+X2+X3+X4

3 9 5 25 4 16 17 289 29

3 9 6 36 3 9 8 64 20

86
 7 49 4 16 6 36 9 81 26

5 25 8 64 1 1 2 4 16

2 4 3 9 0 0 4 16 9

20 96 26 150 14 62 40 454

∑X1 ∑X1² ∑X2 ∑X2² ∑X3 ∑X3² ∑X4 ∑X4²

T = ∑X1 + ∑X2 + ∑X3 + ∑X4

= 20 + 26 + 14 + 40

= 100

N = Total number of items

=5+5+5+5

= 20

Correction factor = T²/N

= (100)²/20

= 10,000/20

= 500

STEP 2:

Sum of squares of deviations for total variance

= Square of all items – Correction factor

= ∑X1²+∑X2²+∑X3²+∑X4²-C.F

= 96 + 150 + 62 + 454 – C.F

= 762 – 500

87
= 262

STEP 3:

Sum of squares of deviations between the columns (BSLI High growth rate in future)

= (∑X1²/n+∑X2²/n+∑X3²/n+∑X4²/n) – C.F

= ((20) ²/5+(26)²/5+(14)²/5+(40)²/5 – 500

= 80 + 135.2 + 39.2 + 320

= 574.4 – 500

= 74.4

Degrees of freedom (4-1) = 3

STEP 4:

Sum of squares of deviations between rows (I,e., between age groups)

= (29) ²/4 + (20) ²/4 + (26) ²/4 + (16) ²/4 + (9) ²/4 – C.F

= 210.25 + 100 + 169 + 64 + 20.25

= 563.5 – 500

= 63.5

Degrees of freedom = (5-1) = 4

STEP 5:

Sum of square of deviations for residual variance

= (Sum of squares of deviations for total variance)-(Sum of squares of deviations

between the columns (BSLI High growth rate in future + Sum of squares between age
groups)

= 262 – (74.4 + 63.5)

= 262 – 137.9

88
= 124.1

STEP 6:

ANOVA TABLE

SOURCE OF SUM OF DEGREES VARIANCE F

VARIANCE SQUARES OF
FREEDOM

BETWEEN 74.4 (4-1) = 3 74.4/3 = 24.8 F=15.5125/24.8

COLUMNS(BSLI
= 0.62
High growth rate in
future)

BETWEEN 63.5 (5-1) = 4 63.5/4 = F=15.5125/15.875

ROWS(AGE 15.875
= 0.97
GROUPS)

RESIDUAL 124.1 4+5-1 = 8 124.1/8 =

15.5125

RESULT:

(a) Comparison of variance of column with the residual variance.

The calculated value of F = 0.62

The tabulated value of F for V1 = 8 and V2 = 3 @ 5% level of significance is 3.68

Here calculated value of value of F< tabulated value of F.

Hence we accept the null hypothesis.

89
 There is no significant different between the age group and BSLI High growth
rate in future.

(b) Now comparing the variance of rows (age-group)

The calculated value of F = 0.97

The tabulated value of F for V1 = 8 and V2 = 4 @ 5% level of significance is 3.68

Here calculated value of value of F< tabulated value of F.

Hence we accept the null hypothesis.

Thus there is no significant different between the age group and BSLI High
growth rate in future.

ONE SAMPLE RUN TEST

TO DETERMINE THE RANDOMNESS OF THE SELECTED SAMPLES

H0: Samples are randomly chosen

H1: Samples are not randomly chosen.

TABLE SHOWING RESPONDENTS OPINION ON WHICH COMPANY

POLICY DO YOU HAVE

90
 NO OF
S.NO OPTIONS PERCENTAGE (%)
RESPONDENTS
40 40%
1. BSLI
60 60%
2. LIC

TOTAL 100 100

RUN:

IYYYYYI INNNNNI IYYYYYI INNNNNI IYYYYYI

IYYYYYI INNNNNI IYYYYYI INNNNNI IYYYYYI

IYYYYYYI INNNNNI IYYYYYI INNNNNI INNNNNI

IYYYYI INNNNNI IYYYYYI INNNNNI INNNNNI

IYYYYYI INNNNNI IYYYYYI INNNNNI INNNNNI

No of runs r = 25, n1= 40, n2=60

μ = (2n1n2 / n1 + n2) + 1 = 49

σ2 = 2n1n2 (2n1n2 – n1 – n2) / (n1 + n2) 2 (n1 + n2 – 1)

= 22.78

σ = √22.78 = 4.77

Upper Limit = μ + 2.58 σ = 61.3

Lower Limit = μ - 2.58 σ = 36.7

RESULT:

Since the no of runs (= 25) is inside the curve, H0 is accepted. i.e. samples are
chosen randomly.

91
 FINDINGS

 90% people saying that investment in insurance sector is good option and 10%
are saying no.

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

 Majority of the persons taking children’s plan.

92
  56% people are saying that investment in LIC is better than BSLI, 44% are
saying investment in BSLI is better.

 Most of the people of both LIC and BSLI are getting rate of interest 8-12%

 Most of the people 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.

SUGGESTIONS & RECOMMENDATIONS

Information regarding new product should be provided to the customers.

The company should find out the number of people who are not having any of the
insurance plans through an intensive market research and motivate them to get
insured.

93
  At some level Company should provide information to the customers about
the charges of the policy.

 Company should target each and every class of the society.

 The Charges should be relatively low of the policies.

 Annual premium should be reasonable.

CONCLUSION

Here in this study we see that people have more policies of LIC in comparison
to BSLI. People have more faith in govt. companies than private. So it is necessary for
private companies. That they should give more attention to that points or that areas
where it lacks for further future growth. Insurance sector is very wide and co. can
grow in future.

94
 BIBLIOGRAPHY

 www.birlasunlife.com

 www.licindia.com

 www.google.com

95
  Newspapers

 www.irda.com

Reference Books:

 Kothari. C.R. (2002), “RESEARCH METHODOLOGY”, Vishwa

Publication. New Delhi.

 Beri G .C. “MARKETING RESEARCH” New Delhi, Tata Mc Graw-Hill

Publishing Company Limited.

 Goyal, Dr.Alok, “FINANCIAL MARKET OPERATION” New Delhi, V.K.

(India) Enterprises.

QUESTIONNAIRE

• NOTE: The information that you will provide will be kept confidential and
will be used only for academic Purpose.
• Our questionnaire will be to those persons who have plans of BSLI or LIC.

GENERAL

96
Age:

(a) 25-30 (b) 31-35 (c) 36-40 (d) 41-45 (e) Above 45

Gender:

(a) Male (b) Female

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 of the following plans are mostly preferred by customers?

(a)Whole Life Plan (b) Retirement Plan (c) Children Plan (d) Health
Plan (e) Golden jubilee plan

4. Are you satisfied with the Whole Life Plan?

(a) Excellent (b) Very good (c) Good (d) poor (e) Very poor

5. How far the retirement plan useful

(a)Excellent (b) Very good (c) Good (d) poor (e) Very poor

6. Is the children plan effective?

(a)Excellent (b) Very good (c) Good (d) poor (e) Very poor

7. How do you rate the health plan?

(a)Excellent (b) Very good (c) Good (d) poor (e) Very poor

8. Is the golden jubilee plan effective for you

(a)Excellent (b) Very good (c) Good (d) poor (e) Very poor

9. How much percentage of interest you yield from it?

97
 (a) Below 5% (b) 5-8% (c) 8-12% (d) Above 12%

10. 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

(f) Any other please specify ______________________________

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

(a) Yes (b) No

12. 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

13 If not, 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

98
(e) Any other (please specify)____________________

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

(a) Yes (b) No

15. In the future, do you think BSLI will have high growth rate.

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

Any suggestions __________________________________

99