A Report On

MARKET POTENTIAL IN “LIFE INSURANCE SERVICES”

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PREFACE

It’s a magic mantra for the marketer. It says the customer is best satisfied when it least expects it. Today’s highly –competitive marketplace, when mere satisfaction does not ensure loyalty, decrees this. To take potential defectors by surprise, you have to behind customer expectation by anticipating its need and then surpassing them with constantly superior products or service or delighting the customer. Nor must be delight be a one-off offering, which can be bartered for a lifetime purchase. You must be prepared for a lifetime purchase. You must be prepared to it again and again, increasing the level of satisfaction at each encounter with the customer. It was in the late eighties that corporation discovered the magic mantra: customer loyalty. In the mid nineties the manta is being modified somewhat. Instead of merely satisfaction, the enlightened companies have now started talking about customer loyalty. The distinction is important increasingly research data is showing that even customers who claim to be satisfied tend to desert a company whenever its rival unleashes a new marketing program. And any marketing exercising that merely aims at satisfying customers is unlikely to reap any term benefits. Marketing’s traditional connection with customer are no longer sufficient I a real time world focus groups, market research, consumer surveys and other tools for probing the consumer wants and needs are and always have been

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limited. Customer surveys must view with skepticism. By contrast, continuous connection with customers can provide information that focus groups and surveys cannot. A customer is rarely interested in the products per she is only interested in what the product Cando for him. That’s why, any marketer who can help the customer get the maximum benefits from the products stands to gain a district competitive edge in the market place.

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ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Mr.Ankur gupta, branch officer of (BIRLA SUN LIFE INSURANCE COMPANY LTD.), Muzaffarnagar for giving me an opportunity to undergo this summer training in his esteemed organization. I also extend my sincere thanks to the employees of BIRLA SUN LIFE INSURANCE CO. LTD. Muzaffarnagar With out their support and guidance, this project could not be completed. Though out the project work, they had been a constant source of motivation to me. Lastly I would like to thank all the facility members of marketing department of our institute who guided me to fulfill my project.

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STUDENT DECLERATION STUDENT DECLARATION
I here by declared that this summer training project entitled ‘A REPORT ON MARKET POTENTIAL IN “LIFE INSURANCE SERVICES” in NCR region, (A CASE STUDY OF BIRILA SUN LIFE INSURANCE COMPANY LTD.) Submitting for partial fulfillment of the requirement for the degree of M.B.A. from U.P.TECHINICAL UNIVERSITY, LUCKNOW is of my original work. This report is only for education purpose and not for any other purpose.

FROM DIVYA SHEKHAR SINGH DATE M.B.A (Third sem.)

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CONTENTS
1. 2. 3. 4. 5. PREFACE ACKNOWLEDGEMENT STUDENT DICLERATION CERTIFICATE OF HEAD OF INSTITUTE CERTIFICATE OF OFFICER OF CONCERNED ORG.

PART-1

1.0
1.1 1.2 1.3 1.4 1.5 1.6 1.7

INTRODUCTION
BRIEF HISTORY OF THE UNIT-LINKED INSURANCE BRIEF HISTORY OF BIRLA SUN LIFE INSURANCE CO. ORGANISATION STRUCTURE BRIEF PROFILE OF SERVICES OF ORGANISATION AREAS OF EXCELLENCE GROWTH OF BSLI IN UNIT-LINKED LIFE INSURANCE PROBLEM IN ORGANISATION

2.0 3.0 4.0

DISTRIBUTION NETWORK PRICING POLICY OF THE COMPANY OBJECTIVES OF THE STUDY

PART-2

5.0
5.1 5.2

RESEARCH METHODOLOGY
SAMPLING PLAN TIME SCHEDULE

6.0
6.1 6.1.1

DATA COLLECTION METHOD
PRIMARY SOURCES QUESTIONNAIRE

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6.1.2 6.1.3 6.1.4 6.2

SURVEY METHOD INTERVIEW OBSERVATION METHOD SECONDARY DATA

7.0 8.0 9.0 10.0 11.0
11.1 11.2 11.3

TABULATION AND ANLYSIS SWOT ANALYSIS CONCLUSION SUGGESTION ANNEXURE
QUESTIONNAIRE SURVEY FORM ILLUSTRATION OF THE COMPANY POLICY (All the documents that are given by the company At the time of the policy)

12.0

BIBLOGRAPHY

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1.0

INTRODUCTION:
1.1

BRIEF HISTORY OF UNIT- LINKED INSURANCE: The

“unit linked life insurance policy” as it is understood and practiced in the west was introduced in our country only in 2000 when LIC brought in to the market a policy called “BIMA PLUS”. As a data, expect two or three new companies all the companies are selling the unit linked life insurance policies. The term “unit” in our country is somehow identified only with the ‘units’ sold by UNIT TRUST OF INDIA. This product is also called “EQUITY LINKED POLICY” or “MARKET LINKED POLICY” to indicate that the returns under these plans are linked to the market returns of the equities or shares. The credit of introducing the first unit linked plan goes to UTI when they brought out the Unit linked life insurance (ULIP) in 1971,In 1989 LIC Mutual Fund introduced the ‘DhanRaksha’ Plan identified to the ULIP. The term of the policy in either 10 or 15 years. With the effect from 1-7-02 the target amount under these two schemes has been introduced to Rs. 2 lakhs from Rs.75, 000.it works like this: from the uniform contribution for each year (for example @Rs.20,000 for ten years) a small portion is used to buy term death cover for Rs.2 lakhs and the balance is invested in units and at the end of ten years the accumulations made in your account is given as the maturity benefit

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along with a 5 or7.5% bonus. There is some restriction in full death cover in the first two years. After two years the full death benefit will be paid equal to the target amount. a free accident cover is also given for Rs.50,000. From April 2000 this plan is made NAV driven and UTI has made several beneficial changes. In fact, these plans are considered to be the cheapest insurance with good returns! As life insurance people are not making these plans, they are not very popular in large numbers. The concept involved in these unit or equity –linked policies is that as the major part of your premium amounts paid over a period of years is invested in equities and other capital market instruments year after year, the return when it comes will not be affected very much by inflation as it happens in a maturity value of the policy in any average life insurance policy for the same period. Of course, the insulation against inflation is the insulation against inflation is subject to the usual investment risks and the investments performing reasonably well. The idea of linking insurance benefits to the performance of units was first tried for annuities. The annuity benefit was for a fixed number of units, the value of which depended upon the market value of a portfolio of equity assets. The teachers insurance and annuity association in USA first introduced this method in 1952 to pay the annuities in collaboration with the college retirement equity fund. The insurance companies could not follow this method to extend the benefit to the

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general public due to legal obstacles and funding problems till 1964. In 1959 the US supreme court ruled that such insures will be subject to the regulation of securities and exchange commission (SEC) only in 1964 the SEC permitted insurance companies to introduce such annuities. Each groundwork for successfully operating unit-linked life insurance policies was first made in Holland, Netherlands, Canada and UK. However, life insurance contracts linking to the performance of units came only in 1976 in USA. The SEC ruled that life insurance contracts with an equity base would be subject to the securities act of 1933-34 and investment company act 1940. The agents selling such policies were also to take special licenses. While it is called “Unit- linked life insurance policy” inUK it is called “Variable insurance contracts” in USA. It is rightly called “variable” because both the premiums and the benefits under the policy are ‘variable’ according to eh choice of the policyholder. What is paid under the policies is the returns on the performance of the chosen equities and not a fixed sum as in an ordinary policies. The majority of them are whole life plans.

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Basically, in USA, it offers the life insurance coverage combined with a tax- differed investment feature. Your premium payment are spent on three things: 1) The cost of the life insurance; 2) Various insurance company fees-including sales charges which are deducted from each premium payment and 3) Your tax –deferred investment account, whatever amount is left after the first two goes into the third. And the amount is probably a lot less than you would hope. There are stringent regulations on selling these policies in other countries. For example, in USA, since the variable life insurance products switches the investment risk from the insurance company to the policy owner, these types of policies are considered both insurance contracts and securities and are regulated by both the securities &exchange commission and the state insurance commissioner. An agent authorized to sell variable life insurance must be licensed by the state as well as by the National Association of Securities Dealers (NASD) to work as a registered representative. As a security, variable insurance products are regulated by the securities &exchange commission, which brings out a new set of agent requirements dealing, primarily with full and fair disclosure laws. For

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example, any sales presentation or illustration must be preceded by or accompanied by a prospectus approved by the SEC. all materials used in selling and the SEC must also approve promoting these product prior to use. In our country, however, only the IRDA regulates this policy and the investment of the premiums collected under the policies. Also it is enough if the selling agent has passed the basic IRDA insurance license examination. No special qualifications are need by the agent and SEBI does not have any control over the designing of or illustration prepared by the insurance companies in selling such policies. 1.2 BRIEF HISTORY OF BIRLA SUN LIFE INSURANCE COMPANY LTD.:

A joint venture between the Aditya Birla Group and Sun life Financial, Birla sun life insurance forayed into the life insurance and retirement planning business by pioneering the unique unit-linked solutions in India. In just over 2 years of its launch, the company has catapulted to second position in new business premium in the highly competitive private life insurance industry based on its strategy of unit-linked plans.

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1.2.1 THE ADITYA BIRLA GROUP: “Aditya Birla”, a name that evokes all that is positive in business and life. It typifies integrity, quality, performance, innovation, perfection and above all, character. In operation for over 50 years now, the Aditya Birla Group is one of India’s largest business houses. A highly respected and admired group, rooted in performance ethics based on value creation for its multiple stakeholders. The Aditya Birla Group’s operations span over 40 units across 18 countries, anchored by a 72,000 strong committed workforce, a group turnover exceeding Rs.27, 000 crore, an asset base which exceeds Rs.20, 000 crore and a market capitalization of over Rs.13, 000 crore spread over 7 lac shareholders. Known for its rack solid fundamentals it nurtures a culture where success does not come in the way of the need to keep learning afresh to continue innovating and to carry on experimenting. Being one of the largest corporate houses in India, and Aditya Birla Group enjoys a dominant position in all the sectors in which it operates. It is the world’s largest producer of viscose staple fibre, largest single location aluminum plant and the largest single location refiner of palm oil. What’s more, it is the second largest producer of insulators and the fifth largest producer of carbon black in the world.

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In India, the group is the single largest producer of viscose filament yarn, aluminum, white cement and the third largest in grey cement. Not to mention, the recognition of being the market leader in the ready to wear branded apparel segment with brands like Allen solly, Louis Phillip, van heusen and peter England. The flagship companies of the Aditya Birla Group include some of the largest and most respected companies in India such as grasim industries limited, Hindalco industries limited, Indian Aluminum Company limited, Indian Rayan Industries Limited, Indo Gulf Corporation Limited. The Group has larged power relationship with large corporations like Hindustan Petroleum, Tata, Powergen Plc and AT&T. The group fosters a culture that promotes excellence and rewards entrepreneurship. It endeavors to make the workplace a source of creativity, innovation and self-fulfillment for its employees. Nurturing a corporate culture imbedded with a high level of commitment and a sense of shared destiny. The mission of the Aditya Birla Group is creation of value for its customers, shareholders, employees and the society at large.

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1.2.2. SUN LIFE FINANCIAL: Sun life financial is a leading international financial services organization. With a history that dates back to 1871, Sun life financial has evolved from a single mutual life insurance to one of the most highly rated insurance and wealth management institution in the world. Sun life financial knows its value lies in more than assets and history. It also lies in the culture of the integrity and the pursuit of excellence that have marked all of the organization endeavors. Today the sun life financial group of comp anise and the partners are represented globally in Canada, the United States, the Philippines, Japan, Indonesia, India and Bermuda. In March of 2000, Sun life financial services of Canada, inc, Sun life financier’s parent company, listed its shares on stock markets in Toronto, New York, London, and Philippines. This new access to shareholders equity provides Sun life financial with even greater opportunities to grow around the world. The Sun life financial group of companies around the world, offer innovative and practical financial solutions to individuals and corporations:  Life, Health and Disability  Pension Funds and Plans  Investment Management  Annuities and Savings

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 Trust, Brokerage and Banking Sun life assurance Company of Canada, sun life financier’s primary insurance business, has excellent ratings with the world’s top ratings agencies. With assets under management as on September 30, 2000 totaling more than CDN$345 billion, it ranks amongst the largest international financial services organizations in the world. Sun life financial enjoys independent rating that place us at the top of the financial sector in North America.

1.2.3 VISION: To be a world-class of financial security to individuals and corporate and to be amongst the top three private sector life insurance companies in India.

1.2.4 MISSION: To be the first preference of our customers by providing innovative need based life insurance and retirement solutions to individual as well as corporate. Well –trained professionals through a multi channel distribution network and superior technology will make these solutions available. Our endeavor will be to provide constant value addition to customers throughout their relationship with us, within the regulatory framework.

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We will provide career development opportunities to our employees and the highest possible returns to our shareholders.

1.2.5. OUR VALUES: • • • • • • • INTEGRITY TRANSPERENCY CUSTOMER FOCUS EXCELLENCE INNOVATION MERITOCRACY RESPECT FOR THE INDIVIDUAL

1.2.6. OUR FEATURES: Our unit-linked flexi products are based on universal life platform, catering to the customer’s twin needs of insurance and investment. Our customers have appreciated these products, which have the beneficial features of life insurance, mutual funds and banks. Some of these features are described below: 1. PROSPECTS
FOR GROWTH WITH UNDERLYING GURANTEES:

According to their risk appetite, the customers can choose out of three investment options, viz, protector (Representing a low risk portfolio),

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Builder (Medium risk portfolio) or Enhancer (High risk portfolio) with guaranteed returns fund, at present ranging from 3%-6%. The flexibility of changing the investment option initially availed by them is also available. 2. GUARANTEES PROVIDE SAFETY NET: The policyholders enjoy the upside returns provided by the portfolios in all the investment options. As on 31st December 2002, the annualized returns since inception under protector, builder and enhancer options were 9.75%, 11.12% and 14.74% respectively, which is above the minimum level guaranteed. 3. CONVENIENCE IN PAYMENT OF PREMIUMS: The customer has the option of paying any amount of premium, any number of times (within a policy year) irrespective of the mode. Traditional products available in the market do not offer such a facility. 4. BUILT-IN GUARD AGAINST UNITENDED LAPSATION: These products provide continuity of risk coverage for a long time even if the premiums remain unpaid. The continuity of risk is ensured with the help of monthly recovery of cost of insurance and automatic premium advance facility. A policy can lapse if and only if the policy fund pertaining to the individual policy becomes negative.

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5. RISK COVER DOES NOT DECRESE DURING THE TERM OF THE POLICY: Unlike traditional life insurance policies, where the sum at risk (Sum assured –paid up value) actually goes on decreasing, in our flexi policies, death benefit is sacrosanct and and remains uniform throughout the tenure of the policy. In case of death, the face amount as well as the policy fund representing the saving portion in the premium is payable. 6. ACCELERATED PAYMENT OF PREMIUM POSSIBLE: Depending on one’s financial situation a shorter premium-paying period can be selected, with the advantage of greater accumulation resulting into higher death/surrender/withdrawals/ maturity benefits. 7. LIQUIDITY ON TAP: Traditionally, insurance products have been know to be illiquid. Policy loans are at a cost and surrenders defeat the very purpose of insurance. In such an environment, the facility of withdrawals without affecting the risk cover is one of our unique features. 8. NO PENALTY FOR SURRENDER: Unlike in traditional type of life insurance policies where the policy holders have to suffer a financial loss on surrender of their policies, our products do not provide any surrender charge after the first four years.

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9. CUSTOMERS CAN SEE THEIR MONEY PERFORM: Our policyholders are provided with an access code to know the policy values online. Besides, the investment performance of the various options is published every quarter and the policyholders receive a yearly statement reflecting the status of the policy fund. 10. OTHER BENEFITS: a. b. Lower premium for female customers ‘Age last birthday’ gives the customers advantage of lower age c. A policy can be customized to the policyholder’s requirements. For instance our ‘Flexi life line’ with the facility of limited premium payments and withdrawals thereafter, becomes a veritable pension plan with attendant tax benefits. d. Detailed illustration at the point of sale

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1.3

ORGANISATION STRUCTURE: two guides Biral sun life
insurance business operations if its core values, namely integrity and transparency. BSLI complies with a all regulations governing the life insurance business. A high degree of transparency is followed in al the business practiced and procedures and all employees are governed by an internal code of conduct. BSLI abides by the corporate governance framework in accordance with the Kumar Managalam Birla committee as applicable to the life insurance business, as well as the provisions of the insurance act, 1938, the companies act, 1956 and the IRDA regulations. The various committees overseeing the business are: BOARD OF DIRECTORS • Mr. Donald Stewart- chairman • Mr. Kumar Mangalam Birla • Mr. Gary M. Come ford • Mr. Douglas C. Hence • Mr. S.K. Mitra • Mr. B.N.Purankmalka • Hish Highless • Mr. S.N. Talwar • Mr. G.P. Gupta Maharaja G.Singh

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AUDIT COMMITEE • • • • Mr. B.N. Puranmalka Mr. S.K. Mitra Mr. D.C. Henck Mr. G.M. Cmerford

INVESTMENT COMMITEE • Mr. S.k. mitra • Mr. B.N. Puranmalka • Mr. P.J. Akers • Mrs.K.Gupta • Mr. A. Fenn • Mr. N.B. Javeri • Mr. S.Shah EXECUTIVE COMMITTEE • Mr. G.M. Comeford • Mr. D.C. Heck • Mr. S.K.Mitra • Mr. B.N. Puranmalka

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Apart from the above committees overseeing the business operation, the CEO and CGO certify the audited accounts of the company and company secretary submits a compliance certificate.

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THE BSLI MANAGEMENT TEAM
Mr. Nani Javeri (CEO) Mr. Peter Akers (CFO and appointed actuary)

Mr. E.N.Goveia P.Nandagopal (Senior vice president –direct sales force)

Mr. (Senior vice president-alternative Channel and group life)

Anjana Grewal Shah K.S.Gopalkirshnan

Jaskirat Kaur (actuary)

Snehal

(marketing &comm.) (group life &personal) (control & admin.)

Mr. K.H. Venkatachalam (chief manager-human resource)

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Mr. Mayank Braganaza (chief manager- finance and planning) development) Mr. Sanjay Parikh (chief manager- product

1.4

BRIEF PROFILE OF SEVICES OF ORGANISATION:

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Pioneered by Birla sun life insurance, Unit- linked solutions bring together the best of life insurance and investment, together. A unique combination of security from life insurance and returns from investment. Introduced in line with the latest global trends, the unitlinked plans put you in total control of your money. They are simple transparent and flexible. What’s more, they offer 3% minimum guaranteed overall returns on the premium. Birla sun life insurance provides individual as well as group life insurance solutions aimed at the corporate sector. 1.4.1 INDIVIDUAL LIFE PLANS: Birla sun life insurance offers number of individual life plans, which can be given below1.4.1. FLEXI SECURELIFE RETIREMENT PLAN: This is a unit-linked retirement plan to give you efficient returns in the long term so as to build a sufficiently large corpus of savings on retirement. The planes built in tow phases: the accumulation phases and annuity phase. During the accumulation phase the plan gives you a choice of three investment options to invest your money with an option to switch between these funds to match your risk appetite. What’s more it offers a guaranteed minimum return of 3% on your premium (deposit) amount net of all charges and deductions in this phase. In the annuity phase the plan gives 2 options to choose from.

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1.4.1.FLEXI LIFE LINE PLAN: This plan offers a life insurance cover till the age of 100 years thus providing you with a lifetime of security. It is an investment for your future in which you accumulate large savings through the benefits of compounding. The plan gives you the flexibility of making tax-free withdrawals and can be customized as tax efficient pension during your working years while the plan continues for a lifetime. 1.4.1 FLEXI SAVE PLUS ENDOWMENT P LAN: It is a flexible life insurance plan, which offers the dual benefit of a life insurance cover as well as large tax-free savings in the long term. The plan is taken for a specified period and the benefits are payable in the events of death during the tenure of the plan or at maturity. The unit-linked nature of the plan coupled with the benefits of compounding can lead to very efficient returns in the long term.
1.4.1

FLEXI CAH FLOW MONEY BACK PLAN: It is a flexible life insurance plan, which offers a life insurance cover and gives lump sum payment at periodic intervals. These periodic payments intervals. These periodic payments help you meet your various financial obligations at crucial junctures such as education or marriage of your child. The unitlinked plan also offers you the option of not withdrawing the lump sum

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amounts and continuing it in the plan to take advantage of the benefits of compounding.
1.4.1

BIRLA SUN LIFE TERM PLAN: The plan offers large life insurance cover for very low costs for a specified term. It is a low premium, pure risk coverage plan, which takes care of one’s financial commitments toward his/her depending should anything unfortunate happen to line policyholder.

1.4.1

BIRLA SUN LIFE PREMIUM BACK TERM PLAN: The plan offers you a life insurance cover for a specified term. Unlike other term plans this plan refunds the entire amount of premium that you pay over a period of time. There are two options of maturity benefits to choose from and what is m ore it is a low cost life insurance plan.

1.4.2 GROUP PLANS: Birla sun life insurance Company offers number of group plans, which can be, described below1.4.2

GROUP GRATUITY SOLUTIONS: It works for your future group gratuity addresses the need of prudent financial management for a progressive corporate house. The unique benefit being it provides market-linked returns that present an opportunity for capital appreciation in the long term. Besides when the fund yields better returns, it decreases the contribution to the fund in the years.

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1.4.3

GROUP SUPERANNUATION PLAN: Retire in comfort- Birla sun life insurance offers group superannuating plan as a retirement solution for employees. The plan has benefits that empower both the employer and employee. The contribution is invested in unit-linked funds yielding market-linked returns to meet your future needs efficiently. Additionally original / principal contribution is guaranteed against market fluctuation.

1.4.4

GROUP PROTECTION PLAN: Birla sun life insurance provides group protection plan for a homogenous group. Under this plan, life insurance cover is provided at an affordable cost. Renewed every year, it helps fulfill the insurance needs of employees as well as provide financial security to their families. In the event of death of the member, the beneficiary (family) of the member gets the benefit. The plan has 6 additional riders and two options.

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PLANS AT A GLANCE
FLEXI SAVE PLUS ENDOWMENT PLAN 30days –65 years Rs.50, 000 for minors and Rs75, 000 for adults As per policy term-5, 10,15,20,25,or 30 years or as per maturity age-15, 20,25,30,35 years for minors and 60,65,70,80 years for adults Single pay 5,10,15,20 years or over the duration of the plan Policy fund Face amount+policy fund FLEXI CASH FLOW MONEY BACK PLAN 30days –65 years Rs.50, 000 for minors and Rs75, 000 for adults As per policy term-5, 10,15,20,25,or 30 years or as per maturity age-15, 20,25,30,35 years for minors and 60,65,70,80 years for adults Single pay 5,10,15,20 years or over the duration of the plan Policy fund Face amount+policy fund FLEXI LIFE LINE PLAN 30days –65 years Rs.50, 000 for minors and Rs75, 000 for adults As per policy term5, 10,15,20,25,or 30 years or as per maturity age-15, 20,25,30,35 years for minors and 60,65,70,80 years for adults Single pay 5,10,15,20 years or over the duration of the plan Policy fund Face amount+policy fund 15 days from the date on which you receive the policy document Under sec 88 and sec 10(10D) of the income tax act 1961 • Accidental death and dismemberment

ELIGIBILITY MINIUM FACE AMOUNT

DURATION OF THE PLAN

PREMIUM PAYING PERIOD

MATURITY BENEFITS AMOUNT DUE TO NOMINEE IN EVENT OF DEATH OF THE LIFE INSURED

FREELOOK PERIOD

15 days from the date on which you receive the policy document Under sec 88 and sec 10(10D) of the income tax act 1961 • Accidental death and dismemberment benefit rider

15 days from the date on which you receive the policy document Under sec 88 and sec 10(10D) of the income tax act 1961 • Accidental death and dismemberment benefit Rider

TAX BENEFITS**

RIDERS

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• Term rider • Critical illness rider • Critical illness plus rider • Waiver of premium rider

• Term rider • Critical illness rider • Critical illness plus Rider • Waiver of premium rider

benefit rider Term rider Critical illness rider • Critical illness plus Rider • Waiver of premium Rider • •

UNIQUE FEATURES

• • • • •

Minimum guaranteed returns of 3% p.a. on your premium net of all policy fees of all policy fees and charges. The entire upside in the performance of the fund is passed on to you. Three investment fund options: protector, builder and enhancer with option to switch between funds any time after the first policy year. Options to make tax-free withdrawals you have additional savings. Vary the face amount of policy depending on your changing needs for life insurance during your lifetime. Surrender your policy without penalty anytime after 4 policy years.

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1.5

AREAS OF EXCELLENCE: Drawing from the strength of the joint venture partners. The aditya Birla group and sun life financial inc. the team of Birla sun life insurance has crossed several milestones of excellence.  Leadership in unit-linked plans- 95% of sales come through unitlinked plans. The company is one of the largest sellers of unit-linked plans in one of the fastest growing life insurance markets in the world.  The company is a p pioneer in introducing unique product features like a ‘free look period’ and best sales practices such as the use of “sales illustrations”. The regulator has now introduced the ‘free look period’ as an industry norm. The mandatory use of a sales illustration within BSLI set up a standard of transparency in the industry.   A high persistency ratio of 95.46% by premium. BSLI has consistently recorded the highest average sum assured of Rs.3, 26,000 and average premium of Rs.19,500 per policy in the industry with a unit-linked product range.    A very efficient utilization of capital. Low claims ratio of 0.06% of total policies. The first advisor to qualify to the “top of the table” (TOT) amongst all private life insurance companies.

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1.6

GROWTH OF BIRALA SUN LIFE IN UNIT-LINKED LIFE INSURANCE: Another successful financial year came to an end. The company reported an annualized new business income of Rs.478 crore during the year 2003-04 an increase of 222% over the premium income lat year. The company of the year-end had an agency force of around 10,250 agents, and 89 ban assurance & corporate partners. All three sales channels came out with flying colors. During the year 2003-04 the company has launched two new groups and one individual fund. During the year 2003-04, the BSE sensex has gone up by 81% but the first quarter of year 2004 was not very exciting for the market except for a huge supply of PSU IPOs. In March 2004, the markets have been choppy and combined with the upcoming elections. This has caused some amount of investor uncertainty. After a continuous rise between may 2003 and January 2004, the quarter saw a correction in the market. The BSE sensex went up to an all time high in January 2004 and the quarter closed at 5590.60 down almost 4% from December 2003 level. There was a large supply of IPOs by PSUs, which met with a good response. The fundamentals remained good and foreign institutional investors (FIIS) continued buying even though the markets declined. The GDP growth numbers has also been encouraging at 10.4% in October – December 2003 quarter.

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The interest rates remained range bound in the quarter with some amount of volatility. The 10- year benchmark G-sec closed at 5.15% at the end of the quarter. The rupee strengthened further to close the quarter at 43.60/ US $ against Rs.45.61 at the end of December quarter and Rs.47.50 a year ago. Forex reserves have crossed $ 110 bn in March 2004 on the back of strong growth in FDI and FII inflows. We will continue to invest in diversified and quality portfolio with a long-term view. Returns on unit-linked individual life funds. (Based on unit price growth, net of charges) as on 31st march 2004
PARTICULARS RETURN ON INVESTMENT (SINCE INCEPTION) % ANNUALISED RETURN (SINCE INCEPTION)% LAST I YEAR (%)

PROCTER BUILDER ENHANCER

39.20 51.11 70.98

12.95 16.88 23.45

20.62 28.33 38.56

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Returns on unit –linked pension funds:
PARTICULARS NOURISH GROWTH ENCRICH RETURN ON INVESTMENT ANNUALISED RETURN (SINCE INCEPTION)% 13.94 15.54 18.78 (SINCE INCEPTION)% 13.21 14.97 17.80 LAST I YEAR (%) 13.30 14.90 18.10

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1.7

PROBLEMS IN ORGANISATION:
Problems in the organization, which are assigned by officer, are not so big problem. It is clear that BIRLA SUN LIFE INSURANCE COMPANY is a unit- linked insurance, which are basically involved in the life insurance solutions. There are number of problem which are as follows1) 2) 3) The main problem of the organization is that the it is not government organization like a life insurance solutions. The second main problem is that lack of believes on the organization by the people. The third problem assigned by the organization that there are the few 4) branches of the BRILA SUN LIFE INSURANCE SOLUTION. Another problem is that the lack of good quality, good skill insurance advisors.

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2.0 DISTRIBUTION NETWORK
BIRLA SUN LIFE INSURANCE COMPANY LTD, distribution strategy is aimed at creating a national presence through a scaleable model, which would achieve convenience, accessibility and quality service for the customers. 2.1 DIRECT SALES FORCE: Through this channel, the company sets up brick and mortar branches on a standardizes template, across the country selling life insurance though trained career agents called ‘insurance advisor’. The team of agency managers and advisors are geared for productivity enhancement national presence in 44branches and 9development centers. 2.2 LTERNATE CHANNELS: The experience in various countries for selling life insurance through banks, corporate agents, brokers, call center, Internet and these distribution alternatives will be pursed by the organization from the inception stage. While in India there was no precedent for selling life insurance though these alternate modes, a philosophy of piloting and stabilizing the model was adopted. The successful business models for banassurance, corporate agency, brokerage, affinity group and direct marketing are being consolidated.

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use of the call center and the internet will continue to be part of the direct marketing initiatives .with a winning multi-channel distribution system in place ,BSLI alternate channels are frontrunners in bancassurance business, in partnership with Citibank ,Deutsche bank,Bankof Rajasthan,BankMuscat,Catholic Syrian Bank, Development credit bank and IDBI Bank. 2.3 OUP INSURANCE: The selling of insurance to corporate and affinity groups is developed though dedicated relationship managers. The business focus is on the Aditya birla group companies and the top corporate in India. Through this channel, the company has established relationships with more than 100 blue chips corporate across the country by providing group protection and group retirement solution. The company has achieved leadership position in-group business in private life insurance position in providing fund management services for the group retirement plans. 2.4 DISTRIBUTION IN TUNE WITH TECHNOLOGY: Technology plays the crucial role, when distribution spans across more than 50 locations .the IT strategy revolves around selecting and implementing critical business applications to support contemporary products like universal life and aligning process to provide world-class customer

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services. The systems are web enabled and equipped to provide consistent information across all touch points (branches, callcenters website etc.). A high quality wide area network (WAN) was set up to interconnect all branches and the headquarters at mumbai. 2.5 TRANNING TO SUPPORT DISTRIBUTION: In keeping with

support throughout the country. Birla sun life insurance’s mission of providing life insurance solutions though “well trained” professionals, our tanning team has geared up to meet the challenge. We have a team of qualified professionals to provide the crucial support throughout the country.

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6.0

PRICING POLICY OF THE COMPANY:

6.1

KEEP TRACK OF YOUR POLICY FUND: Birla sun life insurance sends you an annual policy statement on every policy anniversary to keep you completely informed on the performance of our various funds based on the unit price will be available on our website.

6.2 ELECTRONIC CLEARING SERVICE (ECS): The ECS is a convenient and

hassle- free method of paying premiums through an electronic debit to your bank account.
INVESTMENT FUND PORTFOLIO:
UPPER LIMIT OF %ASSETS IN:

PROTECTOR

BUILDER

ENHANCER

Government and government approved securities Rated corporate bonds (AA and above) Money market and other liquid assets Infrastructure sectors defined by the IRDA Listed equities as

85% 30% 20% 25% 10% 44

70% 30% 20% 25% 20%

55% 30% 20% 25% 35%

6.3 FEES AND CHARGES: The policy loading fee* is an up-front charge

and varies as per the premium payment mode and the policy year as given under:

PAY PERIOD
POLICY YEAR SINGLE 5-PAY 10-PAY 15-PAY OR GREATER

1 2 3 4+

3% N/A N/A N/A

29.9% 5.0% 5.0% 5.0%

54.6% 7.5% 7.5% 5.0%

65% 7.5% 7.5% 5.0%

As a percentage of premium. The policy-loading fee for top up wills 2.0 percent.

6.5

CHARGES: 6.5.1. Charges towards the cost of insurance will be

deducted by cancellation of units at the prevailing unit price on a monthly basis. The annual insurance charges per thousand-face amount for sample ages for healthy lives are as follows: Sex/age (yrs) Female Male 20 0.90 1.02 30 1.16 1.17 40 1.66 2.15 50 4.03 5.53 60 10.66 13.73

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6.5.2.

An investment management free not exceeding

1.5% p.a. of the fund will be charged by adjustment of daily unit prices. Currently this fee is 1% p.a. 6.5.3 The following administration fees will be deducted by canceling units on a monthly basis. (a) Rs. 22 per month
(b)

An annual charge of Rs. 2.88 per thousand face amount will be deducted in the first 10 years of the policy expect in the second year where it will be Rs. 15.24 per thousand face amount. From the 11th year onwards this annual charge will increase subject to a maximum of 3.75%per year.

6.5.4

A monthly rider deduction will apply by cancellation of units on a monthly basis based on the equivalent monthly rider premium payable over the entire coverage benefit period. If rider deductions are not guaranteed, then the minimum policy values of your policy might be affected due to any change in the rates of the rider coverage.

6.6

FUND SWITICHING CHARGES: 6.6.1 In a year, one switch between investment fund options is free. 6.6.2 For every additional switch, a charge of Rs.100 will be levied.

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6.7

SURRENDER CHARGES: The surrender charges is levied in the first four years and varies based on the year in which the policy is surrender. During the first 24 months of the policy, the charge will be an amount equal to the annulled premium payable for this policy .for the purpose of surrender charge only, annualilsed premium is defined as the amount that is payable if the coverage paying period is equal to the coverage benefit period. In the 25th month, the surrender charge is 24 percent of the annualized premium. The surrender charge percent reduces by one for e very month thereafter. If the policy is surrendered at any time after the 49th month, the surrender charge is zero.
6.8

WITHDRAWAL CHARGES:

• In a year tow withdrawals are free of charge • For every additional withdrawal, a charge of Rs.100 will be levied.

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AN ILLUSTRATION, WHICH IS SHOWING THE PRICING POLICY OF THE COMPANY:
THIS PRESENTATION IS PREPARED FOR: Mrs.Nisha Singh

Name of life insured: Date of birth Coverage type coverage Face amount (Rs.)

Mrs.Nisha Singh 01/07/1964/ female coverage annual benefit period (years) premium (Rs.) 4,563.60 151.20 4,714.80 Quarterly

Flexi save plus (age) Accidental Death & Dismemberment rider

90,000 90,000

30 25 Policy premium Due and payable

The premium and associated benefits are described in the product brochures and the following illustration. The details provided in the following illustration would enable you to see how your p premium is being used. If you need help to interpret please contact your

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insurance advisor or call Birla sun life insurance Company’s toll free number, which is 1600227000. Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insure carrying on life insurance business. If your policy offers variable returns then the policy fund values table will show two different rates of assumed future investment returns. These rates return are not guaranteed and they are not upper or lower limits of what you might get back, as the value of your policy is dependent on a number of factors including future investment performance. The guaranteed amounts are the minimum amount that you can expect if all the conditions mentioned later are fulfilled. This illustration ignores the impact of the provisions of the income tax act, 1961. The provisions of section 88 of the income tax act, 1961 govern a tax rebate for premiums paid towards an insurance policy. The tax exemption for the benefits paid under a life insurance policy is governed be section 10(10D) of the I income tax act, 1961. Both these sections may be applicable to this policy .you may consult a qualified tax advisor for specific tax advice related to you. If required by the act, we will withhold taxes from the benefits payable under this policy. We also reserve to you. If required by the act, we will withhold taxes from the benefits payable under this

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policy. We also reserve the right to recover from you levies such as service tax levied by the authorities on insurance transactions. Please note that in the following pages that illustrate the policy fund values: The premium and all values shown are for the life insurance coverage and do not include riders. The rider benefit amount will be payable, wherever applicable in case of happening of the events as mentioned in the rider brochure in consideration of the payment of additional premium/charges. Policy fund values shown as at the end of the year and assume: (1) (2) (3) (4) (5) Premiums are paid in full when due, No withdrawals are made, No outstanding policy loans exit, The investment fund options is not changed throughout the lifetime of the policy, Increase in premiums or charges for riders having nonguaranteed premiums or charges are not recovered from the policy fund, (6) No change is made in the face amount of the life insurance coverage and

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(7)

Policy fees and charges are at current levels as explained in the section “policy fees and charges”. The premium mentioned in this illustration does not include top-up premium or any underwriting extras.

Upon surrender or maturity of the policy, the amount payable to the policy owner is the sum of:
(1) (2)

Guaranteed policy fund surrender /maturity value, and Non-guaranteed policy fund

Less any amounts owed to the company. The sum of 1 and 2 above constitutes the policy fund. With drawls can be made from the holding account, which comprised the non-guaranteed policy fund. Upon the death of the life insured, the death benefit is sum of (1) (2) Life insurance coverage face amount, and Policy fund

Less any amounts owed to the company Provided that where the death of the life insured takes place before the commencement of the policy anniversary, on or immediately following the age when the life insured reaches one year, only the policy fund shall be payable.

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The non-guaranteed policy fund may or may not arise depending on the performance of the investment fund supporting the policy .an investment by you in any of the investment funds I s subject to market and other risks, the value of the investment fund can go up or down depending on the factors and forces affecting financial markets. Other than explicit guarantees provided by the company, there can be no assurance that the objectives of any investment fund will be achieved. FEES AND CHARGES: The policy loading fee* is an up-front charge and varies as per the premium payment mode and the policy year as given under:

PAY PERIOD
POLICY YEAR SINGLE 5-PAY 10PAY 15-PAY OR GREATER

1 2 3 4+

3% N/A N/A N/A

29.9 % 5.0% 5.0% 5.0%

54.6 % 7.5% 7.5% 5.0%

65% 7.5% 7.5% 5.0%

In addition to the above policy-loading fee, the following policy fees and charges will be recovered from the policy fund. 1) The cost of insurance of the life insurance coverage will be deducted by cancellation of units at the prevailing unit price on a monthly

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basis. The annual insurance charges per thousand of the life insurance coverage face amount for sample ages for healthy lives are as follows: Sex/age (yrs) Female Male 20 0.9 0 1.0 2 30 1.1 6 1.1 7 40 1.6 6 2.1 5 50 4.0 3 5.5 3 60 10.66 13.73

2) An investment management fee not exceeding 1.5 percent per annum of the investment fund will be charged by adjustment of the daily unit prices. Currently this fee is 1 percent per annum. 3) Policy administration fees for the life insurance coverage will be reeducated by canceling units on a monthly basis, as follows: a) Rs. 22 per month; and b) Annual charge of Rs. 2.88 per thousand of the life insurance coverage face amount will be deducted in the first 10 years of the policy expect in the second policy year when it will be Rs. 15.24 per thousand of the life insurance coverage face amount. From the 11th year onwards this annual charge (Rs. 2.88 per thousand of the life insurance coverage face amount) increases at an annualized rate of a maximum of 3.75%, every year.

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4) The surrender charges to be levied vary based on the duration of the policy. During the first 24 months of the policy, the charges will be an amount equal to the annaslised premium payable for this p policy. For the purpose of surrender charges only, annualized premium is defined, as the amount that is payable if the coverage playing period is equal to the coverage benefit period. In the 25th month, the surrender charge is 24 percent of the annuallised premium. The surrender charge percent reduces by one for every month thereafter. If the policy is surrendered at any time after the 49th, the surrender charge is zero . The premium net of all charges and fees will earn a minimum life insurance net return of 3 percent per annum, which constitutes the guaranteed fund. Any returns earned by the policy fund in excess of the guarantied fund constitute non-guaranteed fund. For a detailed description of the features of the product, please refer to the product broacher. Acronyms used: TPD- Total And Permanent Disability, TPD/CI- Total And permanent Disability or Critical illness, Death/TPD –Death or And Permanent Disability, Death/TPD/CI- Death or Total Permanent Disability or Critical illness.

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5.

5.0

OBJECTIVE OF THE STUDY:
The main objective of this study is found out the view of different people about the unit-linked life insurance. And find out what they take insurance advisors advise for their investment or not. If not indicate the people for their life insurance and tells them why life

55

insurance is necessary for every persons. There are some reason which indicates why life insurance is necessary for every person given below-

5.1

MARKETING OBJECTIVE: The main marketing objective of this project report for the company is find out marketing position of the life insurance and makes the present and future market strategy of the company.

5.2 RESEARCH OBJECTIVE: 1. 2. Identifying the sources of money or funds a p person has and what happens to that money (where is goes) than Determining the person short and long term priorities 3. Analyzing this information or ones can advice changes to the person financial habits or enable him to achieve his goals.

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6. RESEARCH METHODOLOGY:
research. They are as follows:

For defining research

methodology there are three basic types of methods for marketing

a) The observation method. b) The experimental method. c) The survey method inclusive of panel method. In observation method data are collected on the direct observation. No talks place by observing the person the analysis makes the inventory as to product used by him at his hoe or kept as retailers stocks. In experimental method it is based on the concept that small-scale experiment is useful to indicate the expectation of large-scale experiment. The survey method information is gathered directly from individuals in three ways; 1) 2) 3) Telephone Mail Personal interview This survey method is also suffered to as the questionnaire technique. There is also organized by1) In factual survey

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2) 3)

Interpretative survey Opinion survey In my project point of view I have taken mainly the method of personal interview by questionnaire technique in the personal interview by questionnaire. Technique I usually gathered information by face to face interviewing. In this survey method I saw that the respondent was shown the exhibit and advertisement to give his personal opinion and attitude. In this method the direct interaction on occurred with the retailers and I could collect the reliable information from them.

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RESEARCH PROCESS

DEFINING RESEARCH PROBLEM

INTENSIVE LITREATURE SURVEY

FEED BACK

RESEARCH DESIGN

COLLECTION OF DATA

ANALYSIS OF DATA

RECOMMENDATION AND REPORT WRITING

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6.1

SAMPLING PLAN: Sampling plan of this project report
basically related to the number of points which are given belowThe universe studied prospectors in the areas of N.C.R. mainly Delhi, Ghaziabad, Noida & Gurgoan. The sampling unit is a single prospector outlet, which may be any types. Elements: potential prospector. The geographical limit is the area of N.C.R. Keeply the number of prospector in mind the sample size arrived at was 200. The sampling method followed was judgmental sampling.

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6.2

TIME SCHEDULE:

TOTAL DURATION PREPATION FOR DATA COLLECTION DATA COLLECTION DATA CALIFFICATION AND PREPARATION OF REPORT

17 JULY TO 20 AUGUST 17 JULY TO 12 AUGUST 21 JULY TO 15 AUGUST 16 JULY TO 21 AUGUST

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7.0

DATA COLLECTION METHOD:
In my project report, which has entitled “a research repot on market potential in life insurance solution in NCR region”, has been collected data from the two method(A) (B) PRIMARY SOURCE SECONDARY SOURCE

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Under the primary source data collected by me through the observation, survey and personal interview. QUESTIONNAIRE METHOD: Through the questionnaire method number of question asked by the different people from the different region mainly DELHI, GHAZIABAD, NOIDA, GURGON by me. My questionnaire method is a open ended method in which questions asked by me has a limited number. The main purpose of this questionnaire is find out the view of the people that they take insurance advisor’s advice or not. In which they like to investment their savings. The format of questionnaire of this company is given next page-

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Survey method: This project report is also suffered by the survey
method for collecting the relevant information, so that marketing executive will be success for making marketing strategy according to that survey. The main purpose of this survey which help the insurance advisors to identify the type of market in which insurance advisors may be prospecting and selling should he enter the life insurance business. It will also aid management in estimating their sales potential and in determining the type of training that would be most beneficial to him. The names you enter represent people you know today. Should you enter the business of selling life insurance, you will learn proven ways to meet new people and expand these markets. While many of those you list are presently prospect for life insurance and others are not, do not make the need for life insurance a requirement for adding their names. Do not list names by any predetermined selection rating. Simply list the first 100 names of those who come to your mind most readily.

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(Sampling page) Sources Of Names
A. School / college friends B. Family friends C. Neighbours D. Through Spouse E. Through children F. Through Hobbies / Spot G. Previous employment > 1 Lakh YEARLY INCOME (In Rupees) > 1 Lakh but < 2.5 Lakhs > 2.5 Lakhs but < 5 Lakhs > 5 Lakhs 18 – 25 YEARS 26 – 35 YEARS AGE 35 – 44 YEARS OVER 45 YEARS OCCUPATION MARITAL STATUS ABILLITY Professional / proprietor Manager / Executive Single Married TO Good Fair

Source Letter Persistency source
NAMES SUBMITTED

PROVIDE REFERALS

INTERVIEW:
we go through the –

This project report is also affected by the interview

method. The data is also collected through the interview. Under this method

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  

Telephone interview Mail interview Personal interview Under the telephone interview is used when the information to be collected limited. This method is suitable for inquiry about information just released or telecast by radio or television. Under the mail interview data is collected when the data is more important. Because there is no interviewer in mail surveys to ask questions and record answers. It cannot be used to conduct an unstructured study. Under the personal interview data is collected through the door to door. This method is very relevant and it is also very difficult task to collect the information. And takes much time.

OBSERVATION METHOD: This project report is also suffered by the
observation method. Because some time it is also happened when the number of people was not ready to give the relevant information used this techniques to collect the information. This observation is used when the research problem has been formulated precisely and the researcher is told to observe the area of sturdy. The researchers are asked to record their observations.

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(B)

SECONDARY DATA: under this project report data is also collected through the secondary data. Under this source data is collected through the magazine, through the web site, through the newspaper, through the other insurance organization.

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8.0

TABULATION & ANALYSIS:
From the above questionnaire, we found number of findings and according to them we can do analysis that which type of strategy should be adopted for improving the earnings of the company given belowQUESTION NO 1- How many people plan for their savings and investment?

PEOPLE (IN %)

YES 64%

NO 36%

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70% 60% 50% 40% 30% 20% 10% 0% YES NO PEOPLE (IN % )

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QUESTION NO.2- How many people take help of professional advisor for their investment?

PEOPLE (IN %)

YES 35%

NO 65%

70% 60% 50% 40% 30% 20% 10% 0% YES NO YES NO

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QUESTION NO. 3- Number of people save regularly forSAVING ALTERNATIVS RETIREMENT CHILDREN’S EDUCATION CHILDREN’S MARRIGE TAXATION OTHERS PEOPLE IN % 15% 25% 40% 15% 5%

40% 35% 30% 25% 20% 15% 10% 5% 0% PEOPLE IN % CHILDREN’S EDUCATION CHILDREN’S MARRIGE TAXATION OTHERS RETIREMENT

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QUESTION NO. 4 – How many people save through insurance?

PEOPLE (IN %)

YES 35%

NO 65%

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100% 80% 60% 40% 20% 0% YES NO PEOPLE (IN %)

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7.0

SWOT ANALYSIS:
SWOT analysis of this company is given below-

7.1

STRENGTHS: Strength of this company is given belowbe monitored on daily or bi-weekly basis through the daily- declared NAV/ Unit prices and also through the website of the company. At any given time you will k now the accumulations under your policy due to the investment accruals.

7.1.1 There is transparency in the scheme. The performance of the fund can

7.1.2 Normally any time after one to three years time depending upon the scheme, you can chose to withdraw your money by partial or complete surrender of units. The death benefit will be proportionately reduced. 7.1.3 You can surrender the policy and get a guaranteed surrender value. 7.1.4 You can also take a loan on a policy after three years duration. 7.1.5 You can switch from one stream of investment to the other every year by paying a small fee according to your changing needs. 7.1.6 You can top up your premium anytime during the term to increase your benefits. 7.1.7 The plans are available as endowment whole life money back or as pension plans. 7.1.8 In fact some companies allow you to have the contract as long as you want without a fixed term, even up to death.

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7.1.9 The option of with or without profits is also available in some plans. Actually some companies give a guaranteed bonus as a percentage of the sum assured as bonus 7.1.10The normal riders such as accident benefit, disability benefit critical illness or major surgical assistance covers are also available. 7.1.11The policies are issued with the usual “free-look” provision. 7.1.12One company has floated a unit-linked policy for women with a critical rider benefit specifically covering some gynecological illnesses. 7.1.13You can buy the policy with a single premium like a bond or pay premium by the usual yearly, half-yearly or quarterly mode. 7.1.14Some companies offer even “premium holiday option”. If after paying premiums for three years you are not able to pay the premium, the policy will be continued adjusting the overdue premiums from your unit fund. 7.2WEAKNESS: Weakness of this company is given below7.2.1 The expenses deducted from the premiums especially in the first two years considerably shrink the amount that goes towards your investment corpus. 7.2.2 The heavy frontloading of the effectively acts as a disincentive for early withdrawals. 7.2.3 The unit-linked plans completely pass on the investment risk to the policyholder and he has to be ever vigilant.

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7.3OPPORTUNITIES: Opportunities of this company is given below7.3.1 If unit-linked policies can be given section 88 benefits there is a valid reason that investment in an ordinary mutual fund should also be given the same benefit, as they are basically same except for the addition of insurance element in the unit-linked policy. 7.3.2 The rear end tax-free benefit is a very attractive tax break for the unitlinked policy as per the current tax laws. 7.3.3 The return by way of capital appreciation in mutual fund as well as from the sale of stocks are taxed as capital gains with the indexation benefit, according to the current tax laws. Only the dividends are taxfree. 7.4THREATS: Threats of this company is given below7.4.1 This is company is also suffered by the great market competition. There are number of competitors of this company. 7.4.2 Another threat of this company is that the changing environment. Changing environment means change in government, change in government policy, change is competitor’s policy.

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8.0

CONCLUSION:
Unit – linked policies are a very valuable addition to the existing array of insurance producers. But, when sold to a wrong prospect or brought a wrong agent it will become useless. IRDA and the companies should take care that well- trained and professional agents market these product. In view of what was discussed above, the buyer if they need such plans according to their risk appetite should select a known, well- informed agent who is reliable. Agents who are already dealing with investment or saving instrument or mutual funds, if they sell life insurance also would be a good choice. In case they hence doubts about the availability of such agents, it would be more advisable to go to corporate agent with a background in financial instruments or still better, to a good broker who are likely to be better equipped than an ordinary agent. Continued advice and guidance will be available with the corporate agent and the broker as they are corporate entities.

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9.0

SUGGESTION:
By this project report there are the number of suggestion which can be given to the company are given below-

9.1Company should recruit well-informed, well-qualified, well-financial knowledge. So that he will success to satisfy the potential customer for their investment or savings. 9.2In fact, the contract to buy the product in my opinion is not the usual insurance contract governed by the principle of unerimma fides but one of caveat emptor. Under the principle of utmost good faith, the company expects the proposes to give all the material facts so that it can charge the “correct premium” based on the factors of risk presented. 9.3How to deal with the situation? The companies or IDRA cannot educate the policyholder. They should educate the agent. 9.4Prospective unit-linked policy buyers should understand the structure of the plans , the factors that determine how good their returns will be and the risks involved and then figure out if they have the risk appetite, whether they can get better returns on their investment elsewhere and whether their investment horizon matches the long lock-ins over which these plans offer the best rewards. 9.5Insurance companies will generally give you a picture on the basis of the past performance of the fund but the past performance of the fund is never an indicator of how the fund might perform in the future.

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9.6Insurance companies allow you to shift from one fund to the other at any point of time. This can be useful if you want to plan your investment based on your life needs.

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ANNEXURE:
Under the annexure we includeQuestionnaire Survey form An illustration of the company policy ( All the documents which are received by
the client at the time of policy)

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QUESTIONNAIRE:

Birla Sun Life Insurance Co. Ltd.
Life insurance coverage survey Name: ----------------------------------------------------------------------------------------Address: ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Occupation: ----------------------------------------------------------------------------------Tel.: Residence ---------------------------- Office -----------------------------------------Date of Birth: ------------------------------ Annual Income ------------------------------Family Particulars: Name of spouse ------------------------------------------------------- Age -----------------No. Of Children -------------------------------------------------------------------------------1. Do you plan your savings and investments? Yes Yes 3. Do you save regularly for Retirement Children’s education 4. 5. Do you save through insurance? Yes Yes No No Would you like to get professional advice in insurance solution? Children’s marriage Taxation Others No No 2. Do you take help of professional advisor for your investment?

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SURVEY (Sampling page) Sources Of Names
A. School / college friends B. Family friends C. Neighbours D. Through Spouse E. Through children F. Through Hobbies / Spot G. Previous employment > 1 Lakh YEARLY INCOME (In Rupees) > 1 Lakh but < 2.5 Lakhs > 2.5 Lakhs but < 5 Lakhs > 5 Lakhs 18 – 25 YEARS 26 – 35 YEARS AGE 35 – 44 YEARS OVER 45 YEARS OCCUPATION MARITAL STATUS ABILLITY Professional / proprietor Manager / Executive Single Married TO Good Fair

Source Letter Persistency source
NAMES SUBMITTED

PROVIDE REFERALS

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BIBLIOGRAPHY
B00KSMAGAZINEC.R.KOTHARI, PHILIP KOTLER.

INSURANCE WATCH, INDIA TODAY, BUSINESS TODAY, BUSINESS WORLD.

NEWS PAPER-

THE TIMES OF NEW INDIA, HINDUSTAN TIMES, ECONOMICS TIMES, BUSINESS -STANDARD.

WEB-SITE-

www.birlasunlife.com , www.google.com

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