INTERNSHIP PROJECT REPORT

ON
MARKETING STRATEGIES OF SBI LIFE INSURANCE WITH SBI LIFE

SUBMITTED BY
CHETNA BAHRDWAJ
Enrollment no. 13219201710
STUDENT OF

LINGAYAS LALITA DEVI INSTITUTE OF MANAGEMENT &

SCIENCES
MANDI ROAD, NEW DELHI-110047

FOR THE PARTIAL FULFILLMENT

OF
BACHELOR IN BUSINESS MANAGEMENT

UNDER THE SUPERVISION

OF
Mr. .
SUBMITTED TO

GURU GOBIND SINGH INDRAPASTHA UNIVERSITY

DELHI, INDIA

CERTIFICATE
Certified that this project report Marketing strategies of SBI lifeis the
bonafide work of chetna bhardwaj who carried out the project work under the
supervision of <Name of faculty>.

<<Signature of the Head of the Department>>

SIGNATURE

<<Signature of the Class Incharge>>

SIGNATURE

<<Name>>
HEAD OF THE DEPARTMENT

<<Name>>
Project Incharge

<<Department>>

<<Department>>

<<Full address of the Dept & College >>

<<Full address of the Dept & College >>

DECLARATION

I hereby declare that the project work entitled [marketing strategies of sbi life]
submitted to the [GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY], is
a record of an original work done by me under the guidance of [RESPECTIVE
NAME], Faculty Member, [RESPECTIVE COLLEGE OR UNIVERSITY NAME
AND PLACE FROM WHERE THE FACULTY MEMBER IS FROM ], and this
project work has not performed the basis for the award of any Degree to the best
of my knowledge.
YOUR NAME] [ENROLMENT NO]
[SIGNATURE OF STUDENT]

ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me
during the writing of this report. My deepest thanks to Lecturer, [LECTURER
NAME] (the Guide of the project for guiding) for correcting various documents of
mine with attention and care. He has taken pain to go through the project and make
necessary correction as and when needed. I express my thanks to the hod of,
[department], for extending his support. My deep sense of gratitude to
[RESPECTIVE NAME] (DESIGNATION), [COMPANY NAME WHERE THE
PROJECT WAS UNDERTAKEN] support and guidance. Thanks and appreciation
to the helpful people at [COMPANY NAME WHERE THE PROJECT WAS
UNDERTAKEN], for their support. I would also like to thank my Institute and my
faculty members without whom this project would have been a distant reality.

TABLE OF CONTENTS
CHAPTER NO.

TITLE

PAGE NO.

ACKNOWLEDGEMENT
iii
PREFACE
iv
EXECUTIVE SUMMARY

LIST OF TABLE (if any)

xii

LIST OF FIGURES
xviii
LIST OF SYMBOLS

1.

INTRODUCTION

1.1

GENERAL

1.2

.... .........

1.2.1

General

1.2.2

...........

12

1.2.2.1 General

19

1.2.2.2 . . . . . . . . . .

25

1.2.2.3 . . . . . . . . . .

29

1.2.3

2.

xxvii

............

30

1.3

. . . . . . . . . . .. . . . . . .

45

1.4

..................

58

LITERATURE REVIEW
2.1

69

GENERAL
2.2

..........

75
99

2.2

100

EXECUTIVE SUMMARY
This deals with the concluded aspects of the study carried out on perception about SBI Life
Insurance. The basic objective is for the study is for which study was carried out has been
fulfilled in the earlier chapter, based on the objective interview schedule was designed. Data
collected based on schedule was analyzed and some findings have emerged.
Business strategy
Our long-term savings business is the groups engine for growth, accounting for 73% of total
premiums written. Our strategy is to achieve profitable growth by providing customers with a
wide choice of high-quality products through a mix of distribution channels.
We operate in a combination of mature and developing markets, which offer excellent
opportunities for both short-term and long-term growth. We have leading businesses in the UK
and continental Europe, and more recent businesses in India, China and Eastern Europe where
we see opportunities for substantial long-term growth.
Our diverse and cost-efficient business model puts us in a strong position to benefit from further
market upturns, particularly with the need for increased retirement savings in many countries.
We share product knowledge and distribution expertise across the group to benefit all our
businesses.
Market position
Aviva is one of the leading providers of life and pensions in Europe. During 2004 we
consolidated our position as the UKs largest long-term savings company with a market share of
over 12% and, as a leading bancassurance business in Spain, we have a share of the Spanish life
market of around 10%. In Ireland we are the number three life and pensions company with an
11% market share.

We are among the top five in the Netherlands, Ireland, Poland, Turkey, Lithuania and Singapore,
among the top 10 in France, Italy, Belgium, Romania, Australia and India, and have significant
operations in the United States and Germany. Our long-term savings operations in India and
China are developing well, with large potential for growth over the longer term.
Distribution
We believe that a strong multi-distribution capability is a fundamental part of offering choice and
excellent service to our customers. Our strategy is to align our distribution model to each market,
and our distribution mix continues to evolve as these markets develop.
Independent advisers continue to be our largest source of new business, providing around 47% of
worldwide sales. Bancassurance is important, generating 23% of the groups business, and is the
dominant sales channel in a number of our markets. Direct sales represent 26% of the total, and
partnerships with non-banking organisations provide the remaining 4% of sales.
In more developed markets, such as the UK, France and the Netherlands, we have built the
capacity to meet customer demand for a wider choice of products sold in a variety of ways,
including advice through independent advisers and banking partners.
Bancassurance distribution is an integral part of our strategy in some countries and the dominant
channel in others, such as Italy, Spain, Singapore and Hong Kong. Our joint ventures in the
developing markets of India and China sell through a combination of banks and direct sales.

INTRODUCTION
THE INSURANCE INDUSTRY IN INDIA
With the largest number of life insurance policies in the world, Insurance happens to be a mega
opportunity in India. Its a business growing at the rate of 15-20 per cent annually and presently
is of the order of Rs 450 billion (for the financial year 2009 2010). Together with banking
services, it adds about 7% to the countrys Gross Domestic Product (GDP). The gross premium
collection is nearly 2% of GDP and funds available with LIC for investments are 8% of the GDP.
Even so nearly 80% of the Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. A large part of
our population is also subject to weak social security and pension systems with hardly any old
age income security. This in itself is an indicator that growth potential for the insurance sector in
India is immense.
A well-developed and evolved insurance sector is needed for economic development as it
provides long term funds for infrastructure development and strengthens the risk taking ability of
individuals. It is estimated that over the next ten years India would require investments of the
order of one trillion US dollars. The Insurance sector, to some extent, can enable investments in
infrastructure development to sustain the economic growth of the country.

KEY MILESTONES

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 by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers along with provident societies were taken over by the
central government and nationalized. LIC was formed by an Act of Parliament- LIC Act 1956with a capital contribution of Rs. 5 crore from the Government of India.

The opportunities for insurance in India

Only 25% of the insurable population has been extended cover. Market penetration is low
and potential to exploit is high.
Insurance premium per capita is very low ($4)
Lack of a comprehensive social security system/state benefit and welfare means that
demand for pension products should be high.
Huge middle class of approximately 300 million.
Existing insurance companies score low on the customer service front.
With steadily increasing corporate asset values, need for insurance is on the rise. Competition
can help ensure the best products with better services.

The Alternatives to Insurance is as follows

1) The first alternative is to insurance is to provide Self-insurance, i.e., the individual
has to create a fund to meet risk exigencies. Specified trusts also have tried to provide
insurance by a scheme of self-insurance. However, these are not very popular. The
postal department provides insurance coverage to all working people. There are many
financial instruments which advocate savings and provide future returns at specific
intervals such as the provident fund and pension plans. However none of these
provide for life coverage.

Indian Insurance Industry A Macro View

In India, the life insurance business commenced in the year 1818 with the establishment of
the Oriental Life Insurance Company in Kolkata. In 1956, LIC was formed and all the private
players at that time were nationalized. The first general insurance company in India, Triton
Insurance Company Ltd. was established in the year 1850 and the General Insurance Business
(Nationalisation) Act, 1972, nationalised the general insurance business in India with effect from
January 1st, 1973. On December 7, 1999, with the introduction of the Insurance Regulatory and
Development Authority (IRDA) Bill,

the Indian insurance sector was opened to private

competition in March, 2000. Now there are about 20 players in the industry, in India, non-life
and life insurance sectors taken together. The Indian insurance

industry is

governed by

Insurance Act - 1938, General Insurance Business (Nationalisation) Act, 1972, Life Insurance
Corporation Act - 1956 and Insurance Regulatory and Development Authority Act (IRDA) 1999.
Insurance is a federal subject in India. IRDA regulations require insurance companies to invest
not less than 15% of their funds in infrastructure and social sectors. International insurance
companies also invest their funds in such projects. Under the guidelines, there is a 26 percent
equity capital for foreign partners in an insurance company. Premium rates of most of the

general insurance policies

come under the purview of the

government appointed

Tariff

Advisory Committee.
India is one country with the largest number of insurance policies in force in the world. It is a
business with a growth rate of 15-20% annually and a total worth of Rs. 450 billion. Together
with banking services it adds about 7 percent to the countrys GDP. Growth premium
collection is nearly 2 percent of GDP and funds available with LIC for investments are 8
percent of GDP.

COMPANY PROFILE

About Us
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance.
SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI Life
Insurance has an authorized capital of Rs. 2,000 crores and a paid up capital of Rs 1,000 crores.
Overview
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance.
SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI Life
Insurance has an authorized capital of Rs. 2,000 crores and a paid up capital of Rs 1,000 crores.
Parentage
Along with its 5 Associate Banks, State Bank Group has the unrivalled strength of over 16,000
branches across the country, arguably the largest in the world.
BNP Paribas is the 1st largest French company and ranks 5th in the banking industry worldwide,
1st bank in Euro Zone as per Global 2000 Forbes 2008. It is 6th most valuable international
banking brand as per Brand Finance 2008.BNP Paribas Assurance is the insurance arm of BNP
Paribas. BNP Paribas, part of the worlds top 10 group of banks by market value and part of
Europe top 3 banking companies, is one of the oldest foreign banks with a presence in India
dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance company in
France, and a worldwide leader in Creditor insurance products offering protection to over 50
million clients. BNP Paribas Assurance operates in 41 countries mainly through the banc
assurance and partnership model.
Mission:
"To emerge as the leading company offering a comprehensive range of life insurance and
pension products at competitive prices, ensuring high standards of customer satisfaction and
world class operating efficiency, and become a model life insurance company in India in the post
liberalization period".
Values:
Trustworthiness
Ambition
Innovation
Dynamism
Excellence

Multi-Distribution Model
SBI Life has a unique multi-distribution model encompassing vibrant Bancassurance, Retail
Agency, Institutional Alliance and Corporate Solutions distribution channels.
SBI Life extensively leverages the State Bank Group relationship as a platform for cross-selling
insurance products along with its numerous banking product packages such as housing loans and
personal loans. SBIs access to over 100 million accounts across the country provides a vibrant
base for insurance penetration across every region and economic strata in the country, thus
ensuring true financial inclusion. Agency Channel, comprising of the most productive force of
over 65,000 Insurance Advisors, offers door to door insurance solutions to customers.
Key Milestones
Financial Year 10-11:
Won the most coveted NDTV Profit Business Leadership Award 2010.
Globally topped the prestigious Million Dollar Round Table (MDRT) 2010 for having the
maximum number of MDRT members.
Awarded the Gold Shield by Institute of Chartered Accountants of India (ICAI) for Excellence in
Financial Reporting.
Won the ICS Quality Champion Award 2010 for Continual Quality Improvement.
Adjudged

Best

Life

Insurer

2010

Runner

Up

by

Outlook

Money.

Launched an innovative customer care initiative - SMS SOLVE for prompt Grievance
Redressal.
Appraised at Maturity level 3 of Capability Maturity Model Integration (CMMI) Version 1.2 for
its ISG Division.
ICRA reaffirmed iAAA rating to SBI Life, indicating highest claims paying ability and meeting
policyholders obligations.
CRISIL, countrys leading rating agency, reaffirmed its highest financial rating AAA/Stable to
SBI Life.
Financial Year 09-10:
Reported a robust Net Profit of Rs.276 Crores.
Crossed Rs.10,000 Crores in Gross Written Premium (GWP).
Ranked No.1, in New Business Premium, amongst private life insurance companies.

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

Globally topped the prestigious MDRT 2009 for having Maximum number of MDRT Members.
ICRA reaffirmed iAAA rating to SBI Life indicating highest claims paying ability.
Awarded ISO Certification (ISO/IEC 27001:2005) for Information Security Management System
(ISMS).
Retained ISO 9001:2000 certificate for superior claim settlement process.
Financial Year 08-09:
Ranked among global top three in terms of number of Million Dollar Round Table (MDRT)
members.
Bagged the coveted personal finance award-Outlook Money NDTV Profit "Best Life Insurer
2008".
CRISIL, countrys leading rating agency, reaffirmed its highest financial rating AAA/Stable to
SBI Life. In 2007, SBI Life became the first life insurer in India to receive this rating from
CRISIL.
ICRA assigned iAAA rating indicating highest claims paying ability to SBI Life Insurance.
Retained ISO 9001:2000 certificate for superior claim settlement process.
Financial Year 07-08:
Ranked amongst global top five life insurance companies in the number of MDRT members.
Rated as the The Most Trusted Private Life Insurer according to a survey conducted by Brand
Equity in association with AC Nielsen ORG-MARG and the Economic Times Intelligence
Bureau.
Became first life insurer in India to receive the highest financial rating AAA from CRISIL, the
countrys best known rating agency in 2007.
Forayed into micro insurance with the launch of Grameen Shakti in Bhubaneshwar, Orissa for
the economically underprivileged sections of society.
Received ISO 9001: 2000 certification for superior claim settlement process.
Became the only domestic life insurer to achieve CMMI Level 3 certification for IT processes
and software development capabilities.
Financial Year 06-07:
Second consecutive year of Profitability
Leads Private Life Insurance Companies in Lives covered : 6.49 Million lives covered

Financial Year 05-06:

Became the first Life Insurer to make Profits
Gift Drishti

One of our corporate ethos, enhancing our SBI Life brand value, is about giving back to the
society. In line with our Corporate Social Responsibility (CSR) initiatives, the cause of
supporting our Elderly Citizens was initiated. Incidence of cataract blindness, annually at 3.28
million, is one of the most prevalent health ailments suffered by old people, particularly in rural
pockets of our country.
On the occasion of World Elder's Day on 1st October, CSR initiative - "Gift Drishti" (Restoring
vision) was launched in partnership with HelpAge India, a registered national level voluntary
body, working for the cause of disadvantaged aged persons. Restoring vision is done through
Intra Ocular Surgery (IOL). SBI Life employees made monetary contributions to the cause. SBI
Life donated twice the sum contributed by its employees. Eye sight for thousands of elderly
citizens

was

restored

across

the

rural

parts

of

the

country.

Gift Drishti Camps

Read India Pledge

SBI Life undertook the Corporate Social Responsibility (CSR) initiative, aimed at driving the
cause to make children read and write. The campaign, "Read India Pledge" sensitized general
public towards the cause and urged them to pledge & support the cause monetarily or by
devoting time.
The campaign was partnered by Pratham, one of the leading child-cause related NGOs and Radio
Mirchi, a leading radio station.
Read India Camps

Services
SBI Life offers a wide range of services to you where not only you can track your account,
generate premium online. Also you can now pay your premium online with our Electronic
Clearing Service (ECS) which is convenient and minimizes time & effort. Click on the links on
the left menu to explore the services offered.
Calculate Premium
SBI Life - Smart Wealth Assure
SBI Life - Smart Performer
SBI Life - Unit Plus Super
SBI Life - Saral Maha Anand
SBI Life - Smart Elite
SBI Life - Smart Scholar
SBI Life - Smart Horizon
SBI Life - Lifelong Pension Plus
SBI Life - Smart Pension
SBI Life - Smart Shield
SBI Life - Saral Shield
SBI Life - Swadhan
SBI Life - Scholar II
SBI Life - Money Back
SBI Life - Sanjeevan Supreme
SBI Life - Shubh Nivesh
SBI Life - Saral Life
Unit Linked Plans
Introduction:
Unit Linked Insurance Plans are long term investment cum protection plans that offer you an
opportunity of availing market linked returns while providing life insurance protection.
Depending on your risk appetite, you have the option of choosing from host of funds having
varied degree of risk exposure. Flexibility and transparency are some of the other attractive
features that make ULIPs an attractive long term investment option.

To help you fulfill your long term dreams, SBI Life presents you a wide range of ULIPs so that
you continue to Celebrate Life!
SBI Life - Smart Performer
(UIN : 111L068V01)

(Product Code : 44)

Introduction
Key Features
Product Snapshot
Benefits
Introduction:
The equity market may have its ups and downs, but you now have a protective shield that will safeguard your
investments, while providing upside potential. SBI Life brings you Smart Performer, a unique Unit Linked,
Non Participating insurance product that offers you the twin benefits of Higher than the Highest of the daily
NAV Guarantee and the prospect of market upside. Whats more, it also allows you to protect your gains
through Automatic Rebalancing facility and offers you a choice of Single and Limited Premium Payment
options.
Key Features:
Guarantee at maturity based on 5% Higher than Highest Guaranteed NAV during the first seven years or
prevailing NAV at Maturity, whichever is higher, subject to conditions#.
Enjoy the best of both worlds - Guarantee only or Guarantee and Market Upside through our unique Plan
offerings - Secure Plan and Secure N Grow Plan respectively
Automatic Rebalancing to Lock-in your gains
Convenience through single premium (SP) or 5 year Premium Paying Term (PPT)
Life Insurance coverage with minimum Sum Assured of 10 times or 7 times of your Annualised Premium
(AP), based on your age.
Liquidity through Partial Withdrawal(s)
Option to customize the product with Accidental Death Benefit
Attractive Tax benefits under the Income Tax Act,

1961,

subject

to

conditions

Product
Snapshot
Age at Entry*

Min: 9 years

Age at Maturity

Max: 75 years

Premium Payment Term

SP or 5 years

Minimum
Amounts

Limited
(X

Premium Yearly

Max: 65years

Rs

50,000

Rs

44,000

Quarterly

Rs

36,000

Monthly

Rs

20,000

100) Half-yearly

Minimum Single Premium (X 100) Rs

Maximum Limited/Single Premium No limits

60,000

SBI Life - Saral Maha Anand

(UIN : 111L070V01)
(Product Code : 50)
Mortality Rates for SBI Life - Saral Maha Anand
Introduction
Key Features
Product Snapshot
Benefits
Rider Brochures
Introduction:
SBI Life - Saral Maha Anand, a unit linked insurance cum savings plan.
Getting a Life Insurance policy was never so easyNo medical examination, which means
hassle-free coverage. Enjoy the power of liquidity through partial withdrawals. All these
benefits at affordable costs, only for you.
Key Features:
No medical examination, Simple joining process#.
Liquidity through Partial Withdrawals.
Guaranteed Additions## of up to 30% of one annual premium, for a 20 year policy term,

subject to the Policy being in force till the maturity date.

Option to avail additional rider benefit under SBI Life - Accidental Death Benefit Linked

Rider (UIN: 111A019V01)

4 Fund options, to enjoy market related returns as per your risk appetite.
Twin Benefit of Market linked returns & insurance cover.
Product Snapshot
Age at Entry ^
Minimum: 18 years
Maximum: 55 years
Max. Age at Maturity

65 years

Policy Term

10 years / 15 years / 20 years

Minimum Premium

Yearly

Amounts

Half-yearly : Rs. 9,500/-

(x100)

Quarterly

: Rs. 15,000/: Rs. 5,500/-

Monthly

: Rs. 2,000/-

Maximum Premium

Yearly

: Rs. 29,000/-

Amounts

Half-yearly : Rs. 14,500/-

(x100)

Quarterly
Monthly

: Rs. 7,200/: Rs. 2,400/-

Premium Modes

Yearly / Half-yearly / Quarterly / Monthly

Sum Assured

Minimum:
Age below 45 years :

10 AP

Age 45 years or above : 7 AP

Maximum:
20 AP
Partial Withdrawals

Upto 15% of Fund Value can be withdrawn each year, from 6th
year onwards, subject to conditions. One partial withdrawal is
free in a policy year.

Tax Benefits**
Under Sec. 80C and Sec. 10(10D) of Income Tax Act,1961
^ All the references to age are age as on last birthday
**

Tax benefits are subject to change in tax laws. Please consult your tax advisor for details.

Benefits:

Maturity Benefit: On completion of Policy Term, Fund Value will be paid.

Death Benefit: Higher of the Fund Value or Sum Assured * is payable; with a minimum of

105% of total basic premiums paid* till the time of death.

Rider Benefits:
Accidental Death Benefit Linked Rider: Provides additional death benefit if the death

occurs as a result of an accident.

Rider Brochures:
SBI Life - Accidental Death Benefit Linked Rider
#
No medical underwriting if no adverse declaration is made in the proposal form by the
policyholder
##

For any partial withdrawal done, the guaranteed addition shall be reduced proportionately.

Net of partial withdrawals.

For more details on risk factors, terms and conditions please read the sales brochure carefully
before concluding a sale Unit Linked products are different from the traditional products and

are subject to market risks. The premium paid in Unit Linked policies are subject to investment
risks associated with capital markets and the NAVs of the units may go up or down based on
the performance of fund and factors influencing the capital market and the insured is
responsible for his/her decisions.SBI Life is only the name of the insurance company and SBI
Life Saral Maha Anand is the name of the unit linked insurance contract and does not in any
way indicate the quality of the contract, its future prospectus or returns. Please know the
associated risk and applicable charges from your Insurance Advisor or the intermediary or the
policy document. Insurance is the subject matter of solicitation.
Careers
Introduction
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance of
France. We are the first private life insurance company to make profit for three consecutive
years, and to receive AAA rating from CRISIL signifying highest financial strength. In the 2007
survey conducted by ACNielsen ORG MARG and Economic times, we have been voted as the
most trusted private life insurance brand. Join us for a rewarding and enriching career.
You may be interested to know that SBI Life,
Won the most coveted NDTV Profit Business Leadership Award 2010
Globally topped the prestigious Million Dollar Round Table (MDRT) 2010 for having the
maximum number of MDRT members
Awarded the Gold Shield by Institute of Chartered Accountants of India (ICAI) for Excellence in
Financial Reporting
Won the ICS Quality Champion Award 2010 for Continual Quality Improvement.
Adjudged Best Life Insurer 2010 - Runner Up by Outlook Money
Launched an innovative customer care initiative - SMS SOLVE for prompt Grievance
Redressal
Appraised at Maturity level 3 of Capability Maturity Model Integration (CMMI) Version 1.2 for
its ISG Division
ICRA reaffirmed iAAA rating to SBI Life, indicating highest claims paying ability and meeting
policyholders obligations

CRISIL, countrys leading rating agency, reaffirmed its highest financial rating AAA / Stable to
SBI Life.

Mortality Rates for SBI Life - Unit Plus Super

Introduction
Key Features
Product Snapshot
Benefits
Rider Brochures
Introduction:
SBI Life Unit Plus Super is a flexible non participating Unit linked insurance
Plan, specially designed to meet your changing requirements at various stages of
life. With a wide array of funds, riders and other options, this product gives you the
complete freedom to fulfill all your investment and insurance needs. And thats not
all; we now also offer you guaranteed additions and choice of payment options,
giving you far superior value.
Key Features:
Guaranteed Additions# of up to 75% of one annual regular premium on a
regular premium policy, for a 30 year policy term, subject to the Policy being
in force till the maturity date.
No Policy Administration fee for first 5 years for Regular and Limited
Premium Paying Term (LPPT) plans, thereby boosting your fund value
No Premium Allocation Charge from 11th year onwards
Guaranteed Additions starting as early as 10th policy year onwards
Enhanced investment opportunity through 9 varied Fund Options including
P/E Managed Fund, Index Fund & Top 300 Fund
Option to pay Regular/Limited/ Single Premium; Switch or Redirect your
premiums
Flexible product with an option to increase/decrease your Sum Assured from
6th year onwards
Life Insurance coverage, with minimum Sum Assured, based on your age
Liquidity through Partial Withdrawals.
Option to customize the product with a wide range of riders: SBI Life - Criti
Care 13 Rider (UIN: 111A018V01), SBI Life - Accidental Death Benefit
Linked Rider (UIN: 111A019V01), SBI Life - Premium Payor Waiver Benefit

Rider (UIN: 111A017V01) and SBI Life - Income Sustainer Rider (UIN:
111A020V01).
Product Snapshot
Age at Entry* Min: 7 years
Age at

Max: 65 years

75 years

Maturity
Policy Term

Min. Term:
For Regular Premium (RP) -10 yrs, 15 to 30 years (both
inclusive)
For Limited Premium Payment Term (LPPT) - 10 yrs, 15 to 30
years (both inclusive)
For Single Premium (SP) - 5 years
Max. Term: For Regular/Limited/Single Premium Option 30
years
For Regular Premium Same as Policy Term

Premium
Payment Term

For Limited Premium Payment Term (LPPT) Policy Term

PPT

10 year

5 or 8 years

15-30 years

5 or 8 or 10 years

For Single Premium Single Payment

Premium
Amount (X

For RP
For LPPT
For SP

Minimum
Rs. 30,000
Rs. 40,000
Rs. 65,000

Maximum
Rs. 1,50,000
Rs. 1,50,000
Rs. 1,50,000

100)
Premium

Single /Yearly

Modes
Sum Assured

Minimum:
For Regular Premium (RP) & LPPT For Ages below 45 yrs : Higher of {10 * Annual Premium

(AP) or (0.5 * Term * AP)}

For Ages 45yrs & above: Higher of {7 * AP or (0.25 X Term
X AP)}
For Single Premium (SP) For Ages below 45 yrs: 1.25 * SP
For Ages 45yrs & above: Fixed - 1.25 * SP
Maximum:
Particulars
Entry Age

For Regular

For Limited

For Single

Premium

Premium

Premium

Below

45 yrs

Below

45 yrs Below

45 yrs

&

45 yrs

&

above
Sum

20 *

20 *

45 yrs

above
20 * AP 15 *

5 * SP

Assured
AP
AP
AP
* All the references to age are age as on last birthday.
Benefits:
Maturity Benefit: On completion of Policy Term, Fund Value will be paid.
Death Benefit: Higher of the Fund Value or Sum Assured## is payable; with a
minimum of 105% of total basic premiums paid## till the time of death.
Rider Benefits:
Criti Care 13 Rider: Provides lump sum amount to take care of 13 Critical
Illnesses which include Cancer, Coronary Artery Bypass Graft Surgery,
Heart Attack, Heart Valve Surgery, Kidney Failure, Major Burns, Major
Organ Transplant, Paralysis, Stroke, Surgery of Aorta, Coma, Motor
Neurone Disease and Multiple Sclerosis
Accidental Death Benefit Linked Rider: Provides additional death benefit
if the death occurs as a result of an accident.
Premium Payor Waiver Benefit Rider: In the event of the death of the
Proposer, the cover for the Life Assured under the base policy continues
and the future premiums under the base policy, payable during the rider
term, will be paid by the Company.
Income Sustainer Rider: Provides additional benefit in the case of death or

in the case of Total & Permanent Disability due to Accident or Sickness,

whichever is earlier. A 25% of income sustainer benefit sum assured is
paid upfront and 1% of income sustainer benefit sum assured is paid
monthly in arrears for 10 years or till the end of the base policy term
(capped at a maximum of 30 years) whichever is higher.
Rider Brochures:
SBI Life - Accidental Death Benefit Linked Rider
SBI Life - Criti Care 13 Rider
SBI Life - Income Sustainer Rider
SBI Life - Premium Payor Waiver Benefit Rider
#

For any partial withdrawal done, the guaranteed addition shall be reduced

proportionately.
##

Net of partial withdrawals.

For more details on risk factors, terms and conditions please read the sales
brochure carefully before concluding a sale.
SWOT etc.
Huge capital investment will be required to create infrastructure particularly in IT and
telecommunications, a call center will have to be created, top professionals of both industries
will have to be hired, an R & D cell will need to be created to generate new ideas and products. It
is therefore essential to have a SWOT analysis done in the context of banc assurance experiment
in India.
Strengths:
In a country of 1 Billion people, sky is the limit for personal lines insurance products. There is a
vast untapped potential waiting to be mined particularly for life insurance products. There are
more than 900 Million lives waiting to be given a life cover (total number of individual life
policies sold in 1998-99 was just 91.73 Million).

There are about 200 Million households waiting to be approached for a householder's insurance
policy. Millions of people traveling in and out of India can be tapped for Overseas Mediclaim
and Travel Insurance policies. After discounting the population below poverty line the middle
market segment is the second largest in the world after China.
The other strength lies in a huge pool of skilled professionals whether it is banks or insurance
companies who may be easily relocated for any bancassurance venture. LIC and GIC both have a
good range of personal line products already lined up; therefore R & D efforts to create new
products will be minimal in the beginning. Additionally, GIC with 4200 operating offices and
LIC with 2048 branch offices are almost already omnipresent, which is so essential for the
development of any bancassurance project.
Weaknesses:
The IT culture is unfortunately missing completely in all of the future collaborators i.e. banks,
GIC & LIC. A late awakening seems to have dawned upon but it is a case of too late and too
little. Elementary IT requirement like networking (LAN) is not in place even in the headquarters
of these institutions, when the need today is of Wide Area Network (WAN) and Vast Area
Network (VAN). Internet connection is not available even to the managers of operating offices.
The middle class population are today overburdened, first by inflationary pressures on their
pockets and then by the tax net. Where is the money left to think of insurance? Fortunately, LIC
schemes get IT exemptions but personal line products from GIC (Mediclaim already has this
benefit) like householder, travel, etc. also need to be given tax exemption to further the cause of
insurance and to increase domestic revenue for the country.
Another drawback is the inflexibility of the products i.e. it can not be tailor made to the
requirements of the customer. For a bancassurance venture to succeed it is extremely essential to
have in-built flexibility so as to make the product attractive to the customer
Opportunities:

Banks' database is enormous even though the goodwill may not be the same as in case of their
European counterparts. This database has to be dissected variously and various homogeneous
groups are to be churned out in order to position the bancassurance products. With a good IT
infrastructure, this can really do wonders.
Other developing economies like Delhi & NCR have already taken a leap in this direction and
they are not doing badly. There is already an atmosphere created in the country for liberalization
and there appears to be a political consensus also on the subject. Therefore, RBI or IRA should
have no hesitation in allowing the marriage of the two to take place. This can take the form of
merger or acquisition or setting up a joint venture or creating a subsidiary by either party or just
the working collaboration between banks and insurance companies.
Success of a bancassurance venture requires change in approach, thinking and work culture on
the part of everybody involved. Indian work force at every level are so well entrenched in their
classical way of working that there is a definite threat of resistance to any change that
bancassurance may set in. Any relocation to a new company or subsidiary or change from one
work to a different kind of work will be resented with vehemence.
Another possible threat may come from non-response from the target customers. This happened
in USA in 1980s after the enactment of Garn - St Germaine Act. A rush of joint ventures took
place between banks and insurance companies and all these failed due to the non-response from
the target customers. US banks have now again (since late 1990s) turned their attention to
insurance mainly life insurance.
The investors in the capital may turn their face off in case the rate of return on capital falls short
of the existing rate of return on capital. Since banks and insurance companies have major portion
of their income coming from the investments, the return from bancassurance must at least match
those returns.
Threats
The increasing cost and need for insurance might hit a point where a backlash will occur.

Government regulations on issues like health care, mold and terrorism can quickly change the
direction of insurance. Increasing expenses and lower profit margins will hit hard on the smaller
agencies and insurance companies.
Increasing expenses and lower profit margins will hit hard on the smaller
agencies and insurance companies.
OBJECTIVE OF THE STUDY
1) To know the Marketing Strategies Future Generali Life Insurance with others Insurance
Companies.
2) To know the different reasons why people buy insurance.
3) To examining the customers preferences and priorities towards types of insurance
products.
4) It was difficult to get appointment from the person whom I know because of their busy
schedule.
5) Since the project had to be submitted within seven weeks and within this time period Its
very difficult to convert.
6) Since the study involved a through analysis of the insurance market and relative study of
various players offering the similar products and that of similar, it was required a
dedicated labor in term of both time and effort. Since the curriculum did not permit more
time, the study had to be very limited.
7) To analyse future prospects of SBI Life Insurance Co. Ltd.
8) To know the target buyer in terms of income and age
9) To know the type of life cover most preferred by the public
10) To find out what policies Future Generali Life Insurance is providing
11) To find out the various policies in life insurance
12) To study the benefits of this product provided by Future Generali Life Insurance.
13) To know the consumer feedback.
14) To know the marketing strategies adopted to promote these products

RESEARCH METHODOLOGY
RESEARCH DESIGN
During this research approach is taken into consideration because of the availability ty of
relevant information to describe the relationships between the marketing problem and the
available information.
TYPES OF DATA USED.
Both primary and secondary data is used in the research
Data Collection Methods
To conduct the market research the data is collected by two source.
Secondary Data
Secondary data is one which already exists and is collected from the published sources.
The sources from which secondary data was collected are:

Newspapers and Magazines like Economic Times, Insurance Times, and Insurance Post.

Internet
Primary Data
The primary sources of data refer to the first hand information Primary data is collected during
the survey with the help of Questionnaires.
SAMPLING METHODOLOGY
Sampling Unit: Individuals
Sampling Area: New Delhi
Sample Size: 100 people in New Delhi

SCOPE OF THE STUDY

During my training my objective of project was to study the market growth of Future Generali
Life Insurance along with growing number of Future Generali Life Insurance Channel partners.
Other than this I have organized Employee and business man Purchase Program which includes
demonstration of Service in order to increase its sales & demand.

PRESENTATION AND ANALYSES

MARKETING STRATEGY
USED BY SBI LIFE INSURANCE CO. LTD
Welcome to the 7th edition of marketing strategy our quarterly round up of
news around the region.
As banc assurance continues to dominate the news, we thought it might be
interesting to share the results of a recent Mystery Shopping exercise
conducted in Indonesia.
Mystery Shopping is a superb way to find out what really happening at your
front line. Fully briefed act as normal customers in order to experience
visiting a bank branch and undergoing a typical sales experience.
In Indonesia, we carried out our last such exercise in 2007 and the results
were not too impressive unsurprising given that a true in-branch sales model
had only recently been introduced. Against the potential number of sales
opportunities presented, only 2.5% were actually.
In 2010, there was a marked improvement in the front end of the sales
process (first impressions of the branch such as approach and welcoming
techniques, introduction to the insurance specialist, interest shown etc).
Closing techniques and referral rates were down but the overall number of
potential sales opportunities spotted had increased to 12%.
When presenting these results at a recent conference, it was interesting to
see the focus on model works best? from the audience. Encouragingly, all of
the presenters stressed that it is actually the execution of the model which
will make the biggest difference to success, not the model itself.
From our perspective, this is very much the case. The Indonesian exercise
highlighted the need for companies and ensure processes and practices are
systematic and monitored on an ongoing basis. There really is no excuse for
not identifying customers needs and presenting a process which helps to
meet these through appropriate product recommendations

Even at these levels of performance, bancassurers in Indonesia are already

accounting for around 20% of new business. Just imagine what could be
achieved with further process improvements!
REPORT OF DATA COLLECTION
AGE OF THE RESPONDENTS
PARTICTULARS
Less than 25
25 - 35
35 45
Above 45
TOTAL

NO.OF.RESPONDENT
11
40
20
29
100

PERCENTAGE
11%
40%
20%
29%
100

ANALYSIS:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)

11% of the respondents are less than 25 years old.

40% of the respondents are between 25 and 35 years of age.
20% of the respondents are between 35 and 45 years of age.
29% of the respondents are more than 45 years of age.

2. QUALIFICATION OF THE RESPONDENTS.

PARTICUALR
Graduate
Post Graduate
Diploma
Other discipline
TOTAL

NO.OF.RESPONDENT
52
29
8
11
100

PERCENTAGE
52%
29%
8%
11%
100%

ANALYSIS:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)

52% of the respondents were graduate

29% of the respondents were post graduate
8% of the respondents were diploma
10% of the respondents were other discipline

3 OCCUPATIONS OF THE RESPONDENTS

PARTICULARS
Business man
Professionals
Job holders
Others
TOTAL

NO.OF.RESPONDENT
34
18
37
11
100

PERCENTAGE
34%
18%
37%
11%
100%

ANALYSIS:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)

34% of the respondents are businessmen.

18% of the respondents are professionals.
37% of the respondents are jobholders.
11% of the respondents are background.

4 AVERAGE ANNUAL INCOMES OF RESPONDENTS.

PARTICULARS
NO.OF.RESPONDENT
PERCENTAGE
Up to 1 lakh
33
33%
1 lakh 3 lakh
43
43%
3 lakh 5 lakh
20
20%
5 lakh & above
4
4%
TOTAL
100
100%

ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 33% of the respondents have an average annual income up to 1
lakh
b) 43% of the respondents have an average annual income from 1
lakh to 3 lakh
c) 20% of the respondents have an average annual income from 3
lakh to 5 lakh
d) 4% of the respondents have an average annual income above 5
lakh

5 FAMILY SIZE OF RESPONDENTS

PARTICULARS
Below 5 members
5 - 10 members
Above 10 members
TOTAL

NO.OF.RESPONDENT
50
32
28
100

PERCENTAGE
50%
32%
28%
100%

ANANLYSIS:
From the survey it was found that amongst 100 respondents
a) 50% of the respondents are below 5 members.
b) 32% of the respondents are between 5 to 10 members.
c) 28% of the respondents are above 10 members.

6 ACCORDING TO LIFE INSURANCE

PARTICULARS
Risk Coverage
Tax Savings
Good return
Security
All the above
TOTAL

NO.OF.RESPONDENT
10
3
4
3
80
100

PERCENTAGE
10%
3%
4%
3%
80%

ANALYSIS:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)
e)

10% of the respondents say risk coverage.

3% of the respondents say tax savings.
4% of the respondents say good returns.
3% of the respondents say financial security.
80% of the respondents say all of the above.

7 AWARENESS OF SBI LIFE INSURANCE INSURANCE

PARTICULARS

NO.OF.RESPONDENT

PERCENTAGE

Yes
No

17
83

17%
83%

TOTAL

100

100%

ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 83% of the respondents say that they are aware of SBI Life
Insurance.
b) 17% of the say that they are unaware of SBI Life Insurance

8 AWARENESS REGARDING INSURANCE

PARTICULARS
Yes
No
TOTAL

NO.OF.RESPONDENT
2
98
100

PERCENTAGE
2%
98%
100%

ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 98% of the respondents say that they are aware of insurance.
b) Only 2% are unaware of insurance.

9. PERCENTAGE OF RESPONDENTS WHO ARE UNDER DIFFERENT PLANS OF

SBI LIFE INSURANCE.

PARTICULARS
Invest gain plan
Unit gain plan
Child gain plan
Whole life plan
Pension plan
TOTAL

NO.OF.RESPONDENT
41
36
8
15
No
100

PERCENTAGE
41%
36%
8%
15%
No
100%

INSURANCE PLANS OF BHARTI AXA PRUDENTIAL

15%
8%

41%

36%

Invest gain plan

Unit gain plan
Child gain plan
Whole life plan
Pension plan

ANALYSIS:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)
e)

41% of the respondents are under invest gain plan

36% of the respondents are under unit gain plan
8% of the respondents are child gain plan
15% of the respondents are whole life plan
No body under pension plan

10

PERCENTAGE

OF

RESPONDENTS

BENEFITS

OF

CHOOSING

PARTICULAR PRODUCTS
PARTICULARS
Risk coverage
Additional benefit
Maturity date
Sum Assured
TOTAL

NO.OF.RESPONDENT
60
20
12
8
100

PERCENTAGE
60%
20%
12%
8%
100%

THE

11 PERCENTAGE OF DISADVANTAGES IN INSURANCE PLAN

ANALYSIS:
a) 36% of the respondents say that a benefit of choosing the particular
Safety of life.
PARTICUALRS Product is for
NO.OF.RESPONDENT
PERCENTAGE
the particular
Liquidity b) 20% of the respondents
35say that a benefit of choosing 35%
products
is
for
additional
benefit
to
family
Lapsation
20
20%
c)
12%
of
the
respondents
say
that
a
benefit
of
choosing
the particular
Unable to decide premium
19
19%
products
is
for
maturity
date
High risk coverage
14
14%
d)
8%
of
the
respondents
say
that
a
benefit
of
choosing
the
particular
Fixed Term
12
12%
products
is
for
sum
assured
TOTAL
100
100%

ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 35% of the respondents say that disadvantages in insurance
plan are liquidity.
b) 20% of the respondents say that disadvantages in insurance
plan are lapsation.
c) 19% of the respondents say that disadvantages in insurance
plan is unable decide premium.
d) 14% of the respondents say that disadvantages in insurance
plan are high-risk coverage at high premium.
e) 12% of the respondents say that disadvantages in insurance
plan is fixed term

12 PERCENTAGE OF RESPONDENTS WHO WANT TO INVEST IN THESE

DIFFERENT AVENUES.
PARTICUALRS
Recurring Deposit
Equity Fund
Balanced Fund
Mutual Fund
Debt Fund
Cash Fund
TOTAL

NO.OF.RESPONDENT
40
25
10
11
5
9
100

PERCENTAGE
40%
25%
10%
11%
5%
9%
100%

ANALYSIS:
From the survey it was found amongst 100 respondents
a)
b)
c)
d)
e)
f)

40% of respondents say that they want to invest in R.D

25% of respondents say that they want to invest in equity
10% of respondents say that they want to invest in balanced fund
11% of respondents say that they want to invest in mutual fund
5% of respondents say that they want to invest in debt market
9% of respondents say that they want to invest in cash

SALES & DISTRIBUTION STRATEGY

1st distribution channel

1. In this type of channel the company uses its sales representatives to deal with the dealers
directly. The dealers place the order through the sales representatives who visit them periodically,
and the products are delivered directly from the company.
Some companies appoint Direct Dealers who act as their Franchisee Outlets or their Exclusive
showrooms.
2nd distribution channel

2. In this channel of distribution the company appoints distributors on the basis of District/
Population /No of Dealers to be handled by one distributor. The area of operation and its
potential is also taken into consideration.
Some of the companies make the distributor totally responsible from appointing the dealers to
providing after sales service.
3rd distribution channel followed by reliance

3. In this channel of distribution the company appoints Distributors as well as Direct Dealers.

The company appoints distributors to deal with small dealers who order small quantities. With
the dealers who have good potential and sales the company deals directly.
4th distribution channel followed by reliance

In this channel the company appoints a C&F agent who acts on behalf of the company. The
C&F agent is totally responsible for appointment of Distributors and Direct Dealers. He sells to
both the Distributors and the Direct Dealers at the same rates.

DISTRIBUTION NETWORK SBI Life Insurance

SBI LIFE INSURANCE

TIER I
VOLUME
RESELLER

TIER I

Distributors

System Integrators

Own sales force

Value Resellers

Resellers

CUSTOMER

CHANNEL STRUCTURE
Scenario 1

Scenario 2

Companys warehouse at Singapore

Customer

(placing
order

(Direct billing)

directly)
customer
To save the consumer from paying extra amount in the form of taxes and duties a consumer can
directly place an order with the Kwality Dairy warehouse at Singapore scenario1 is a pictorial
representation of the same, also there maybe a case where all the 4 or any one of the national
distributors have warehouses in Singapore and consumer places order with these distributor then
in that case these distributors will place the order to Kwality Dairy which will have direct billing
with the distributors and distributors will have direct billing with the consumer.
How do the finished products of your company move from your end to consumers end?

CONSUMER

RESELLER

In this distribution network a customer with the small requirement reaches the reseller who buys
the product from the big distributors like Ingram, Redington,Tech pacific and iris.How the
finished products moves from Kwality Dairy end to consumers end:

CONSUMER

RESELLER

In this distribution network a customer with the small requirement reaches the reseller who buys
the product from the big distributors like Ingram, Redington, Tech pacific and iris.

BUSINESS

SALES
FORCE
VALUE
RESELLER

Futrue
Generali
India Life
Insurance

This model is drawn to show that for named accounts or big business opportunities it is the
companies own sales force and system integrators (value resellers), which hunts down the
prospective business.
SBI Life Insurance is planning to join hands with the cooperative banks in India to expand its
reach besides augmenting its direct sales force significantly.
Bankassurance has been one of our strongholds in India and we prefer to make cooperative
banks a channel to reach the countryside in India, Mr Bert Paterson, Managing Director, SBI
Life Insurance India, told Business Line during the International Insurance Summit held recently
in Prague.

SBI Life Insurance has two primary distribution channels, its direct sales force as well through
its bank partnerships. SBI Life Insurance has pioneered bancassurance in the country through its
tie-ups with four leading private and nationalized Banks in the country. They are ABN AMRO
Bank, American Express Bank, Canara Bank and The Lakshmi Vilas Bank Ltd. These
associations give SBI Life Insurance potential access to over 2600 bank branches serving over 30
million customers. Already SBI Life Insurance is recognised as the leader in Bancassurance and
70 percent of SBI Life Insurance 's business comes through this channel.
Our investment strategy involves investing the customers' funds in a prudent manner in order to
maximize the returns without exposing him to undue risk on account of fluctuations in the
market. We are the only life insurance company in India having our own in house fund
management team based in Mumbai. Our investment performance this year has been ahead of

benchmark indices and ahead of the performance of our competitors based on the published data
for balanced funds.
Competition Information
Life Insurance Corporation of India
Life Insurance Corporation of India was created on 1st September,
1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all
insurable persons in the country, providing them adequate financial
cover at a reasonable cost.
LIC became so popular in India that common people understand insurance means LIC. The
Central office of LIC is at Mumbai and seven zonal offices at Mumbai, Delhi, Kolkata, Chennai,
Hyderabad, Kanpur and Bhopal. There are 100 divisional offices in important cities and 2,048
branches offices. More than 5.59 Lakh at active agents spread over the country. It has also offices
at abroad in Fiji, Mauritius and Unit7ed Kingdom for business transaction. LIC is associated
with joint ventures abroad with several companies in the field of insurance.

Aviva Life Insurance

Aviva plc was launched in 1st July 2002 as a new name for CGNU
plc. A world leader in financial services, the group has 300-year
pedigree. Aviva brings together 50 trading names and enables the
group to harness the benefits of its size and international capabilities as the seventh largest
insurer in the world. Its main activities are long-term savings, fund management and general
insurance. The group has 56,000 employees serving 30 million customers worldwide.
HDFC - Standard Life Insurance
HDFC Standard Life Insurance Company is a joint venture between India's largest housing
finance provider, HDFC and Europe's largest mutual life assurance company .The Standard Life
Assurance Company (U. K). Standard Life, UK, founded in 1825, has been at the forefront of the
UK insurance industry for 175 years by combining sound financial judgment with integrity and
reliability. It is the Largest Mutual Life company in Europe and has total assets of Rs. 5, 50,000

crore. Depends on the product, like on savings 20-40% Ist year

premium. On investment 2% On pension 7.5%
Birla Sun Life Insurance
Birla Sun Life Insurance is the coming together of the Aditya
Birla group and Sun Life Financial of Canada to enter the Indian
insurance sector. The Aditya Birla Group, a multinational
conglomerate has over 75 business units in India and overseas
with operations in Canada, USA, UK, Thailand, Indonesia,
Philippines, Malaysia and Egypt to name a few.
Foreign Partner: Sun Life Assurance, Sun Life Financials primary insurance business, has
excellent ratings with the world's top rating agencies.

ICICI Prudential Life Insurance

ICICI Prudential Life Insurance is a joint venture between the
ICICI Group and Prudential PLC, of the UK. ICICI started off its
operations in 1955 with providing finance for industrial
development, and since then it has diversified into housing finance, consumer finance, mutual
funds to being a Virtual Universal Bank and its latest venture Life Insurance.
Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance Company Limited is a joint venture
between Bajaj Auto Limited and Allianz AG of Germany. Both
enjoy a reputation of expertise, stability and strength.

LIMITATIONS OF STUDY
Study is restricted to New Delhi, which might not give the national picture.
The duration of time for the study was limited & hence a comprehensive & elaborate study could
not be undertaken. Here the universe of the study is all the salaried people of different age group
in India.

Locale: Here the locale of the study is all the people working and living in Delhi & NCR. It is
restricted to Delhi only because of time & resource constraints
RECOMMENDATIONS
Based on the quantitative analysis the major findings of the study have been highlighted
below.

Most of the people are satisfied with the extent of their life insurance cover. They are not
interested in buying more life insurance.

People do not consider life insurance as a good savings because of low returns.

As life insurance is a long term contract. Maximum people do not have faith on private life
insurance companies, they still prefer Birla Sun Life Insurance.

Because of less advertising not many people are aware about private life insurance
companies.

Most of the people do not know about broker, corporate agents and banc assurance, they rely
on their agents only

The most preferred type of plan is money back. The reason being availability of funds after
every five years which can be used for paying further premium, thus saving the regular
income.

Some people have no idea about what type of cover they have.

Most of the people feel that life insurance is essential but they think returns are low.

Some people have their doubts on the credibility and long stay of private insurance
companies.

Advertising of the insurance product should stress on the need of security.

Insurance should be popularized as the means of securing future rather than saving tax.

New entrants should come out with innovative riders.

Policies should be issued quickly and with less formalities

Other service should also be improved.

Newspaper/Magazines and television are the most effective medium of advertising life
insurance.

Insurance agents should be well trained.

There are certain flaws existing in this working of the insurance industry. There are some of the
recommendation we ad come up with while doing this project. It will help to make insurance
more important sector in todays economy.
1) The need of the hour is to devise a comprehensive strategy that will help the firms face
the challenges of the future. The financial services industry around the world over is
undergoing a major transformation. It is very important that trained marketing
professionals who are able to communicate specific features of the policy should sell the
policy.
2) From our research we could find out that people are not aware about the policies and
features of insurance. Therefore AVIVA and ICICI are recommended to shed light on
policies and explain the benefits, thus increasing the awareness.
3) The penetration of insurance in India is around 22%. This indicates that a vast majority of
rural population is not covered. The market player needs to explore this untapped
potential through their marketing and sales network.
4) The returns of the policies are not properly managed and never given in time. So, these
must be looked at.
5) Pricing of insurance products, as empirically available in India, shows that pricing is not
in consonance with market realities. Life Insurance premium is generally perceived, as
being too high while general insurance (especially motor insurance) is priced too low.
6) Some insurance products, which are not available in India, should, be introduced in
market. There are areas for new product development: Industry all risk policies, Large
projects risk cover, Risk beyond a floor level, Extended public and product liability cover
7) Insurance companies will also had to get savvy in distribution. Enhanced marketing thus
will be crucial. Already many companies have full operation capabilities over a 12-hour
period. Facilities such as customer service center are already into 24-hour mode. These
will provide services such as motor vehicle recovery. Technology will also play an
important role on the market.

CONCLUSIONS
This deals with the concluded aspects of the study carried out on perception about SBI Life
Insurance. The basic objective is for the study is for which study was carried out has been
fulfilled in the earlier chapter, based on the objective interview schedule was designed. Data
collected based on schedule was analyzed and some findings have emerged.
Business strategy
Our long-term savings business is the groups engine for growth, accounting for 73% of total
premiums written. Our strategy is to achieve profitable growth by providing customers with a
wide choice of high-quality products through a mix of distribution channels.
We operate in a combination of mature and developing markets, which offer excellent
opportunities for both short-term and long-term growth. We have leading businesses in the UK
and continental Europe, and more recent businesses in India, China and Eastern Europe where
we see opportunities for substantial long-term growth.
Our diverse and cost-efficient business model puts us in a strong position to benefit from further
market upturns, particularly with the need for increased retirement savings in many countries.
We share product knowledge and distribution expertise across the group to benefit all our
businesses.
Market position
Aviva is one of the leading providers of life and pensions in Europe. During 2004 we
consolidated our position as the UKs largest long-term savings company with a market share of
over 12% and, as a leading bancassurance business in Spain, we have a share of the Spanish life
market of around 10%. In Ireland we are the number three life and pensions company with an
11% market share.
We are among the top five in the Netherlands, Ireland, Poland, Turkey, Lithuania and Singapore,
among the top 10 in France, Italy, Belgium, Romania, Australia and India, and have significant
operations in the United States and Germany. Our long-term savings operations in India and
China are developing well, with large potential for growth over the longer term.

Distribution
We believe that a strong multi-distribution capability is a fundamental part of offering choice and
excellent service to our customers. Our strategy is to align our distribution model to each market,
and our distribution mix continues to evolve as these markets develop.
Independent advisers continue to be our largest source of new business, providing around 47% of
worldwide sales. Bancassurance is important, generating 23% of the groups business, and is the
dominant sales channel in a number of our markets. Direct sales represent 26% of the total, and
partnerships with non-banking organisations provide the remaining 4% of sales.
In more developed markets, such as the UK, France and the Netherlands, we have built the
capacity to meet customer demand for a wider choice of products sold in a variety of ways,
including advice through independent advisers and banking partners.
Bancassurance distribution is an integral part of our strategy in some countries and the dominant
channel in others, such as Italy, Spain, Singapore and Hong Kong. Our joint ventures in the
developing markets of India and China sell through a combination of banks and direct sales.

BIBLIOGRAPHY

1. INTERNET
www.icicipru.com
www.bimaonline.com
www.yahoo.com
www.indiamart.com

www.mnyl.com
www.indiacore.com
www.wikipedia.com
IRDA
OCI
2. MAGAZINES & NEWSPAPERS
Business today
Network magazine
India today
Times of india
Hindustan times

Questionnaire
Dear Sir/Madam,
I am a student of Lingayas Lalita Devi Institute of Management and Sciences, conducting a
marketing survey on SBI Life Insurance, in New Delhi. I request you to fill this questionnaire
& I assure that this data will be used only for study purpose & it will be kept confidential.
1.

Name

_________________________________

2. Address

_________________________________
_________________________________
_________________________________

3.

Age
a. Less than 25
b. 25 35

c. 35-45
d. 45 and above

4. Qualification
a. Graduate

c. Diploma

b. Postgraduate

d. Other discipline

5.

Occupation

a.

Business

c. Job holder

b. Professional
6.

d. Other

What is your average annual income?

a. Up to 1 lakh
b. 1 lakh to 3 lakhs
c. 3 lakhs to 5 lakhs
d. 5 lakhs and more
7. Your family size
a.

Below 5 members

b. 5 10 members
c. Above 10 members
8.

According to you life insurance is,

a. A tax saving plan
b. A saving scheme with good return
c. A financial security for the family
d.

Risk coverage

e. All the above

9. Have you taken any life insurance product of SBI Life Insurance?
YES

NO

If yes
10. Which are in these?
a. Unit gain plan
b. Invest gain plan
f. Whole life plan
g. Children plan
h. Pension plan
i. Others __________________
11. Are you aware of the benefits in your policy?
Yes

No

If yes what are they?

Sum assured
Additional benefits
Maturity date
Risk coverage

12. According to you what are the disadvantages in an insurance plan?

Lapsation
Liquidity
Fixed term
Unable to decide your premium
Unable to decide the sum assured
High risk coverage at high premiums
Other disadvantages
13. In which of the following would you like to invest?
Equity fund
Debt fund
Balanced fund
Cash fund
Mutual fund
Recurring deposits
14. Any suggestion for SBI Life Insurance Co
______________________________________________________
______________________________________________________