A

Project Report
On
PERFORMANCE EVALUATION OF BIRLA SUN LIFE
INSURANCE A STUDY OF JAGADHRI REGION
For the Training Undergone at

Birla Sun Life Insurance Ltd.

Under Supervision Of:

Mr. Deepak Kamboj (Agency Manager)

For the Partial Fulfillment for the Degree of

Bachelor Of Business Administration (2011-2014)

Submitted By:

Manthan, BBA 5th Sem., University Reg. No. – 11-Jimb-4

Submitted To:

Kurukshetra University, Kurukshetra

S. D. Institute Of Management & Technology

Jagadhri-135003

(Affiliated to Kurukshetra University, Kurukshetra)

 ANNEXURE – I

DECLARATION

I, Manthan, hereby declare that the work presented in “Performance Evaluation of

Birla Sun Life Insurance A Study of Jagadhri Region” is genuine work originally
done by me and has not been published or submitted elsewhere for the requirement of a
degree programme. Any literature, data or works done by others and cited within this
dissertation has been given due acknowledgement and is listed in the reference section.

This project report is presented as the partial fulfillment for the degree of Bachelor of
Business Administration

MANTHAN

, India Signature of the Student

ANNEXURE – II
 CERTIFICATION

This is to certify that the Project Report title "Performance Evaluation of Birla
Sun Life Insurance” submitted in partial fulfillment for the award of BBA Programme of
Department of Business Management Kurukshetra University Kurukshetra was carried
out by Manthan under my guidance. This has not been submitted to any other University
or Institution for the award of any degree/diploma/certificate.

Mr. Abhishek Tripathi

PREFACE
To achieve partial and concrete results, it is necessary that theoretical knowledge must be
supplemented with practical environment.

Keeping this view in mind, I have completed my research work regarding “Performance
Evaluation of Birla Sun Life Insurance”. By doing this research work I have learnt a
lot of things which would be really helpful for me in future. This experience in decision
making and practical application of knowledge has contributed greatly to my growth.

Acknowledgement
I take this opportunity to express my acknowledgement and deep sense of gratitude for
rendering valuable assistance and guidance to me by following personality for successful
completion of my project.

I am highly obliged to my project guide Mr. Abhishek Tripathi for his personal
encouragement, prompt assistance and help provided to me in completion of my project.
He has helped me a lot by giving suggestions and guidance whenever needed. His
contribution has been extremely useful and is greatly appreciated. I honor his knowledge
and competence in the field of management.

TABLE OF CONTENTS
 Table of Contents
CONTENTS PAGE NUMBERS

List of Tables i
List of Figures ii

1. INTRODUCTION 1
2. LITERATURE REVIEW 6
3. INTRODUCTION TO COMPANY 22
4. DATA ANALYSIS & INTERPRETATION 49
5. FINDINGS OF THE STUDY 57
6. SUMMERY AND CONCLUSION 58

BIBLIOGRAPHY 60
ANNEXURE 61

LIST OF TABLES AND FIGURES

 LIST OF TABLES
TABLE PAGE NUMBER

4.1 Types of Plan 49

4.2 Satisfaction With The Plan 50

4.3 Satisfaction With The Services of The Company 51

4.4 People Want To More Investment In BSLI 52

4.5 People Having Other Insurance Plan Apart From BSLI 53

4.6 Share of Different Companies 54

4.7 Market Share of Private Companies 55

LIST OF FIGURES
 FIGURE PAGE NUMBER

4.1 Types of Plan 49

4.2 Satisfaction With The Plan 50

4.3 Satisfaction With The Services of The Company 51

4.4 People Want To More Investment In BSLI 52

4.5 People Having Other Insurance Plan Apart From BSLI 53

4.6 Share of Different Companies 54

4.7 Market Share of Private Companies 55

 CHAPTER-1

INTRODUCTION
1.1 INTRODUCTION

Insurance is nothing but a system of spreading the risk of one onto the shoulders of many.
While it becomes somewhat impossible for a man to bear by himself 100% loss to his
own property or interest arising out of an unforeseen contingency, insurance is a method
or process which distributes the burden of the loss on a number of persons within the
group formed for this particular purpose.Basic human trait is to be averse to the idea of
risk taking. Insurance, whether life or non-life, provides people with a reasonable degree
of security and assurance that they will be protected in the event of a calamity or failure
of any sort.Insurance may be described as a social device to reduce or eliminate risk of
loss to life and property. Under the plan of insurance, a large number of people associate
themselves by sharing risks attached to individuals. The risks, which can be insured
against include fire, the perils of sea, death and accidents and burglary. Any risk
contingent upon these, may be insured against at a premium commensurate with the risk
involved. Thus collective bearing of risk is insurance.

INSURANCE INDEMNIFIES ASSETS & INCOME

Every Asset has a value and generates Income to its Owner. There is a normally expected
Life-time for the Asset during which time it is expected to perform. If the Asset gets lost
earlier, being destroyed or made Non-functional through an Accident or other unfortunate
event the Owner is Prejudiced. Insurance helps to reduce CONSEQUENCES of such
Adverse Circumstances which are called Risks.

INSURANCE IS THE SCIENCE OF SPREADING OF THE RISK

It is the system of spreading the losses of an Individual over a group of Individuals

INSURANCE IS A METHOD OF SHARING OF FINANCIAL LOSSES

Of a few from a common fund formed out of Contribution of the many who are equally
exposed to the same loss. What is uncertainty for an Individual becomes a certainty for a
Group. This is the basis of all insurance operations. Thus insurance convert uncertainties
to certainty.
2.2 EVOLUTION OF INSURANCE

The concept of insurance is believed to have emerged almost 4500 years ago in the
ancient land of Babylonia where traders used to bear risk of the carvan by giving loans,
which were later repaid with interest when the goods arrived safely.

The concept of insurance as we know today took shape in 1688 at a place called Lloyd’s
Coffee House in London where risk bearers used to meet to transact business.

This coffee house became so popular that Lloyd’s became the one of the first modern
insurance companies by the end of the eighteenth century.

Marine insurance companies came into existence by the end of the eighteenth century.
These companies were empowered to write fire and life insurance as well as marine. The
Great Fire of London in 1966 caused huge loss of property and life. With a view to
providing fire insurance facilities, Dr. Nicholas Barbon set up in 1967 the first fire
insurance company known as the Fire office.

The early history of insurance in India can be traced back to the Vedas. The Sanskrit term
‘Yogakshema’ (meaning well being), the name of Life Insurance Corporation of India’s
corporate headquarters, is found in the Rig Veda. The Aryans practiced some form of
‘community insurance’ around 1000 BC.

Life insurance in its modern form came to India from England in 1818. The Oriental Life
Insurance Company was the first insurance company to be set up in India to help the
widows of European community. The insurance companies, which came into existence
between 1818 and 1869, treated Indian lives as subnormal and charged an extra premium
of 15 to 20 per cent.

The first Indian insurance company, the Bombay Mutual Life Assurance Society, came
into existence in 1870 to cover Indian lives at normal rates.

The Insurance Act, 1938, the first comprehensive legislation governing both life and non-
life branches of insurance were enacted to provide strict state control over insurance
business. This amended insurance Act looked into investments, expenditure and
management of these companies.

By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75 provident
societies carrying on life insurance business in India. Insurance business flourished and
so did scams, irregularities and dubious investment practices by scores of companies. As
a result the government decided to nationalize the life assurance business in India. The
Life Insurance Corporation of India (LIC) was set up in 1956. The nationalization of life
insurance was followed by general insurance in 1972.

2.3 WHAT IS INSURANCE?

Insurance is a mechanism that ensures an individual to thrive on adverse consequences by

compensating the individual, his/her loss financially. Every individual in the world and
all activities connected with him/her, be it life, profession, business, travel or any other
pursuits are subject to unforeseen and uncalled for hazards or dangers. The benefit that an
individual enjoys in his life by owning a car or a house or a factory can be snatched by
sudden accident which can render even the individual immobile, and his family
vulnerable. At this critical juncture, only insurance helps him not only to survive but
recover his loss and continue his life in a normal manner, which would otherwise be
unthinkable.

The concept of insurance is quite simple. People, who are in similar trade and are
exposed to the same risks, congregate and some to an agreement that if any individual
member suffer a loss, then the loss will be shared by others and minimized in order to
enable the individual member recover from the loss and cover his ground. Similarly the
different kinds of risks can be identified and separate groups can be formed to counter
such risks and reduce to impact to manageable proportion, in which the share could be
collected from the members either after the loss or in advance, at the time of admission to
the group. This is an exemplary sign of humanity and insurance therefore serve the
mankind to a great extent; a point most of the individual tend to overlook, since monetary
aspect is involved. Now such is for tangible assets.
The concept of insurance has been extended beyond the coverage of tangible assets.
Exporters run the risk of importers in other country defaulting as well as losses due to
sudden fluctuations in the currency exchange rates, economic policies turmoil. The risk
are not insured. Doctors run the risk of being charged with negligence and can
subsequently liable for damage. The amount in question can be fairly large, beyond the
capacity of the individual to bear. These are insured. Thus insurance is extended to
intangible assets. In some countries even the voice of a singer , legs of the footballer can
be insured, even though the advantage of spread may not be available in these cases.
Satisfaction of economics needs requires generation of income from some sources. If the
property, which is the source of such income, were lost fully or partially, permanently, or
temporarily, the income too would stop. The purpose of insurance is to safeguard against
such misfortune few, through the help of the fortune many, who were exposed to the same
risk , but saved from the misfortune . Thus the essence of insurance is to share losses
substitute certainty by uncertainty.

The different types of human activities that come under the umbrella of insurance are as follows:

1. House/office/factory or any moveable object destroyed in - Fire insurance

life
2. Shipment or transportation of goods by ship, destroyed in
catastrophe. -Marine insurance
3. Jewellery /cash/ household goods stolen or robbed
4. Goods in transit by roads or railways destroyed.
5. Theft or accident of vehicles
6. Financial cover in ailment /surgery etc -Burglar nsurance

-Carrier insurance

-Vehicle insurance

-Health insurance

All these are non-life insurance. In conclusion one can safely say that the purpose of
insurance be it or non-life is to transfer the financial loss to the insurance company who
spreads in over to the policyholders.
2.3.1 Life Insurance

Life insurance (Life Assurance in British English) is a type of insurance. As in all

insurance, the insured transfers a risk to the insurer. The insured pays a premium and
receives a policy in exchange. The risk assumed by the insurer is the risk of death of the
insured.

2.3.1.1 How life insurance works

There are three parties in a life insurance transaction; the insurer, the insured, and the
owner of the policy (policyholder), although the owner and the insured are often the same
person. For example, if John Smith buys a policy on his own life, he is both the owner
and the insured. But if Mary Smith, his wife, buys a policy on John's life, she is the
owner and he is the insured. The owner of the policy is called the grantee (he or she will
be the person who will pay for the policy). Another important person involved is the
beneficiary. The beneficiary is the person or persons who will receive the policy proceeds
upon the death of the insured. The beneficiary is not a party to the policy, but is
designated by the owner, who may change the beneficiary unless the policy has an
irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary
must agree to changes in beneficiary, policy assignment, or borrowing of cash value. The
policy, like all insurance policies, is a legal contract specifying the terms and conditions
of the risk assumed. Special provisions apply, including a suicide clause wherein the
policy becomes null if the insured commits suicide within a specified time for the policy
date (usually two years). Any misrepresentation by the owner or insured on the
application is also grounds for nullification. Most contracts have a contestability period,
also usually a two-year period; if the insured dies within this period, the insurer has a
legal right to contest the claim and request additional information before deciding to pay
or deny the claim.

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

Actuaries are professionals who use actuarial science which is based in mathematics
(primarily probability and statistics). Mortality tables are statistically based tables
showing average life expectancies. The three main variables in a mortality table are age,
gender, and use of tobacco. The mortality tables provide a baseline for the cost of
insurance. In practice, these mortality tables are used in conjunction with the health and
family history of the individual applying for a policy in order to determine premiums and
insurability. The current mortality table being used by life insurance companies in the
United States and their regulators was calculated during the 1980s. There is currently a
measure being pushed to update the mortality tables by 2008.

The current mortality table assumes that roughly 2 in 1,000 people aged 25 will die
during the term of coverage. This number rises roughly quadratically to about 25 in 1,000
people for those aged 65. So in a group of one thousand 25 year old males with a
$100,000 policy, a life insurance company would have to, at the minimum, collect $200 a
year from each of the thousand people to cover the expected claims. The insurance
company receives the premiums from the policy owner and invests them to create a pool
of money from which to pay claims, and finance the insurance company's operations.
Contrary to popular belief, the majority of the money that insurance companies make
comes directly from premiums paid, as money gained through investment of premiums
will never, in even the most ideal market conditions, vest enough money per year to pay
out claims. Rates charged for life insurance increase with the insured's age because,
statistically, a people are more likely to die as they get older. Since adverse selection can
have a negative impact on the financial results of the insurer, the insurer investigates each
proposed insured (unless the policy is below a company-established minimum amount)
beginning with the application, which becomes part of the policy. Group Insurance
policies are an exception. This investigation and resulting evaluation of the risk is called
underwriting. Health and lifestyle questions are asked, and the answers are dutifully
recorded. Certain responses by the insured will be given further investigation. Life
insurance companies in the United States support The Medical Information Bureau,
which is a clearinghouse of medical information on all persons who have ever applied for
life insurance. As part of the application, the insurer receives permission to obtain
information from the proposed insured's physicians. Life insurance companies are never
required by law to underwrite or to provide coverage on anyone. They alone determine
insurability, and some people, for their own health or lifestyle reasons, are uninsurable.
The policy can be declined (turned down) or rated. Rating means increasing the
premiums to provide for additional risks relative to that particular insured.

Many companies use four general health categories for those evaluated for a life
insurance policy. These categories are Preferred Best, Preferred, Standard and Tobacco.
Preferred Best means that the proposed insured has no adverse medical history is not
under medication for any condition, and his family (immediate and extended) has no
history of early cancer, diabetes or other conditions. Preferred is like Preferred Best, but it
allows that the proposed insured is currently under medication for the condition and may
have some family history. Most people are in the Standard category. Profession, travel,
and lifestyle also factor into not only which category the proposed insured falls, but also
whether the proposed insured will be denied a policy. For example, a person who would
otherwise be in the Preferred Best category will be denied a policy if he or she travels to a
high risk country.

Upon the death of the insured, the insurer will require acceptable proof of death before
paying the claim. The normal minimum proof is a death certificate and the insurer's claim
form completed, signed, and often notarized. If the insured's death was suspicious and the
policy amount warrants it, the insurer may investigate the circumstances surrounding the
death, before deciding whether there is a legal obligation to pay the claim.
Proceeds from the policy may be paid in a lump sum or as an annuity paid over time in
regular recurring payments for either for the life of a specified person or a specified time
period.

2.3.1.2 Contribution of Life Insurance in Development of Economy

 Contribution of Life Insurance Sector in the Economy

 Flow of Insurance Industry in India

 Structure of insurance industry: Snap Shot Industry

 Aggregation of long term savings

 Spread of financial services in rural Areas

 Long term funds for infrastructure development of capital Markets/ Economic

Growth

3.1 COMPANY PROFILE

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

The Aditya Birla Group has a turnover of close to Rs. 1,19,000 crores, with a market
capitalisation of Rs. 1,33,875 crores (as on 31st March 2010). It has over 1,00,000
employees across all its units worldwide. It is led by its Chairman - Mr. Kumar
Mangalam Birla. Some of its key companies are Hindalco, Grasim and Aditya Birla
Nuvo.

Sun Life Financial

Sun life financial –based in Canada-started in 1865. It operates in all the important
markets of the world like Canada, the United States, the United Kingdom, Hong Kong,
the Philippines, Japan, Indonesia, India, China and Bermuda. Sun Life Financial Inc. has
assets under management of over USD 404.7 billion (as on 31st March, 2010). It is a
leading performer in the life insurance market in Canada.

Birla Sun Life Insurance (BSLI) has been operating for 11 years. It has contributed
significantly to the growth and development of the life insurance industry in India. It
pioneered the launch of Unit Linked Life Insurance plans amongst the private players in
India. It was the first player in the industry to sell its policies through the Bancassurance
route and through the Internet. It was the first private sector player to introduce a Pure
Term plan in the Indian market. BSLI has covered more than 2 million lives since it
commenced operations. And its customer base is is spread across more than 1,500 towns
and cities in India. The company has a capital base of Rs. 1,274.5 crores as on 31st March
2010.

With an experience of over 11 years, BSLI has contributed significantly to the growth and
development of the life insurance industry in India and currently ranks amongst the top 5
private life insurance companies in the country.
Known for its innovation and creating industry benchmarks, BSLI has several firsts to its
credit. It was the first Indian Insurance Company to introduce “Free Look Period” and the
same was made mandatory by IRDA for all other life insurance companies. Additionally,
BSLI pioneered the launch of Unit Linked Life Insurance plans amongst the private
players in India. To establish credibility and further transparency, BSLI also enjoys the
prestige to be the originator of practice to disclose portfolio on monthly basis. These
category development initiatives have helped BSLI be closer to its policy holders’
expectations, which gets further accentuated by the complete bouquet of insurance
products (viz. pure term plan, life stage products, health plan and retirement plan) that the
company offers.

Add to this, the extensive reach through its network of 600 branches and 1,75, 000
empanelled advisors. This impressive combination of domain expertise, product range,
reach and ears on ground, helped BSLI cover more than 2 million lives since it
commenced operations and establish a customer base spread across more than 1500
towns and cities in India. To ensure that our customers have an impeccable experience,
BSLI has ensured that it has lowest outstanding claims ratio of 0.00% for FY 2008-09.
Additionally, BSLI has the best Turn around Time according to LOMA on all claims
Parameters. Such services are well supported by sound financials that the Company has.
The AUM of BSLI stood at Rs. 8,165 crs as on February 28, 2009, while as on March 31,
2009, the company has a robust capital base of Rs. 2000 crs.

3.1.1 Achievements of BSLI

 1st to introduce ULIP fund options.

 1st to launch illustrations so that customers understand the products better before
they buy.

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

 1st to disclose portfolio on a monthly basis.

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

3.2 KEY PEOPLE OF ORGANISATION

3.2.1 Board of Directors

 Mr. Kumar M Birla

 Mr. Donald A Stewart,

 Mr. Bishwanath N Puranmalka

 Mr. Ajay Srinivasan

 Mr. Gary M Comerford

 Mr. Suresh N Talwar

 Mr. Gian P Gupta

 His Highness Maharaja G Singh

 Mr. Stephan Rajotte

 Dr. Bharat K Singh

3.2.2 Investment Committee

 Mr. B. N. Puranmalka

 Mr. Eugene Lundrigan

 Mr. Ajay Srinivasan

 Mr. Vikram Mehmi

 Mr. Mayank Bathwal

  Mr. Fabien Jeudy

 Mr. Vikram Kotak

3.2.3 Management Team

 Mr. Vikram Mehmi -President & Chief

-Executive Officer

 Mr. Mayank Bathwal -Chief Financial Officer

 Mr. Mario Braganza -Chief Operating Officer

 Mr. E.N. Goveia -Head - Direct Sales Force

 Mr. Amit Punchhi -Senior Vice President -Third Party -

Distribution

 Mr. Bhavesh Sanghvi -Head - Group Life & Pensions

 Mr. Snehal Shah -Senior Vice President - Operations

 Ms. Anjana Grewal -Senior Vice President - Marketing &

Communications

-Senior Vice President - DSF Expansion

 Mr. Rajesh Bhojani
-Vice President – Human Resource
 Mr. K.H. Venkatachalam
-Vice President, Chief & Appointed Actuary
 Mr. Fabien Jeudy
-Vice President - Compliance
 Mr. Lalit Vermani
-Vice President – Risk Management and
 Mr. Melvyn D'souza
Internal Audit

-Vice President - Investments

 Mr. Vikram Kotak
  Mr. Bhalachandra Nayak
-Vice President – Strategy

3.2.4 Competitors

 Life insurance corporation

 ING vysya life insurance

 Max network life insurance

 MetLife insurance

 Aviva life insurance

 Bharathi Axa life insurance

 Bajaj Allianz life insurance

 Tata AIG life insurance

 ICICI Prudential Life Insurance

 Reliance life insurance

 Kotak Mahindra life insurance

3.2.4.1 Competitors in Detail

 Aviva life insurance: Aviva Life Insurance Company India Pvt. Ltd. is a joint venture
between Aviva of UK and Dabur, one of India's leading producers of traditional
healthcare products. Aviva holds a 26 per cent stake in the joint venture and the Dabur
group holds the balance 74 per cent share.

 Bajaj Allianz: Bajaj Allianz is a joint venture between Allianz AG one of the world's
largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler
manufacturers in the world. Bajaj Allianz is into both life insurance and general
 insurance. Allianz Group is one of the world's leading insurers and financial services
providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries

 HDFC Standard Life Insurance Co. Ltd: is a joint venture between HDFC Ltd., India's
largest housing finance institution and Standard Life Assurance Company, Europe's
largest mutual life company. It was the first life insurance company to be granted a
certificate of registration by the IRDA on the 23rd of October 2000.

 ING Vysya Life Insurance Company Limited: is a joint venture between Vysya Bank
and ING Group of Holland, the world's 4th largest financial services group, with presence
across 50 countries, and a heritage of over 150 years.

 Kotak Mahindra Old Mutual Life Insurance Ltd: is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is one of India's
leading financial institutions and offers a range of financial services such as commercial
banking.

 Life Insurance Corporation of India: (LIC) is an autonomous body authorized to run

the life insurance business in India with its Head Office at Mumbai. It has been
established by an act of the Parliament and started functioning from 1/9/1956.

 ICICI Prudential Life Insurance : ICICI Prudential life insurance is a part of ICICI
Bank.

 Max New York Life Insurance Company Limited is a joint venture between Max India
Limited, a multi-business corporate, and New York Life International, a global expert in
life insurance. New York Life is a Fortune 100 company that has over 160 years of
experience in the life insurance business.

 MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and its
Indian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank, Karnataka
Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu.

 Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 per cent
 shareholding in AMP Sanmar Life Insurance Company in August 2005. Taking over AMP
Sanmar Life provided Reliance Life Insurance a readymade infrastructure and a portfolio.

 SBI Life Insurance is a joint venture between the State Bank of India and Cardiff SA of
France. SBI Life Insurance is registered with an authorized capital of Rs 500 crore and a
paid up capital of Rs 350 cores.

 Tata AIG Life Insurance Company Limited is a joint venture between Tata Group and
American International Group, Inc. (AIG). Tata Group is one of the oldest and leading
business groups of India. Tata Group has had a long association with India's insurance
sector having been the largest insurance company in India prior to the nationalization of
insurance. The Late Sir Dorab Tata was the founder Chairman of New India Assurance
Co. Ltd., a group company incorporated way back in 1919.

 Shriram Life Insurance Company Ltd is a joint venture between the Chennai-based
Shriram Group and the South African insurance major Sanlam. The company launched its
operation in India in December 2005.

3.3 SWOT ANALYSIS

3.3.1 Strength:

 Multi-channel distribution and one of the largest distribution networks in India.

 Implementing Six-Sigma process.

 Customer centric products and services.

 Superior investment and risk management framework

 1 Million Policies sold within 3 and half years.

 Company has maximum number of MDRT as well as good number of HNI

advisors.

 Training process of the company is very strong.

 Different plan for different peoples.

 According to the change in surrounding environment like changes in customer

requirement.

3.3.2 Weakness:

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

 There is no plan for the low income group.

 Fees for the advisor is high than the other company.

3.3.3 Opportunity:

 Insurance market is very big, where company can expand its horizon in insurance
industry.

 Through good investment and insurance it is easy to top Indian customers.

 The huge insurance market (77%) is left so company has opportunity to expand our
products.

 To associate with the more number of HNI.

3.3.4 Threats:

 OLD HABITS DIE HARD: It’s still difficult task to win the confidence of public
towards private company.

 The company is facing major threats from LIC -which is an only government
company.
 Plans for all income groups are not available which can create adverse effect later on
the market share of the company.

3.4 DETAILS OF PRODUCTS

Life is unpredictable. But in face of adversity, our responsibilities towards our parents,
children and loved ones need not be compromised. Insurance planning equips you to
smooth out the uncertainties and adversities that life might send your way, so that the best
that life has to offer, secure in the knowledge that your beloved ones are well provided
for. BSLI offers a complete range of insurance products.

1. Protection Plans

2. Savings Plans

3. Child Plans

4. Investment Plans

5. Retirement Plans

6. Group Plans

7. Rural Plans

3.4.1 Insurance Plans

BSLI offers Lifeguard - a set of pure protection plans. Choose from amongst three
different product structures to insure your life and provide total security to your family, at
a very affordable cost.

3.4.1.1 Level Term Assurance with return of premium

 On death the entire sum assured will be paid.

 On maturity, all the premiums paid will be returned.

3.4.1.2 Level Term Assurance without return of premium

 On death the entire sum assured will be paid.

 No survival or maturity benefits.

You can also enhance the above two policies by adding Accident

& Disability Benefit Rider and Waiver of Premium Rider (WOP)

3.4.1.3 Level Term Assurance - Single premium:

 On death the entire sum assured will be paid.

 No survival or maturity benefits.

3.4.2 Protection Plans

BSLI offers a variety of policies that give you the benefits of protection and the
opportunity to save for important assets or events, like a home, a car or a wedding.

A regular premium unit-linked insurance plan with an assurance of Capital Guarantee#

with the added advantage of flexible liquidity option. An ideal plan for long term
planning with the benefit of liquidity.

The key features of the plan are:

 Flexibility to choose a specific level of protection (Sum Assured), based on a multiple

of the annual premium. You can also choose the term of the plan.

 At the end of the term, the higher of the value of units or the guaranteed value is paid.
On death, Sum Assured along with the higher of value of units or the guaranteed
value is payable.
 Facility to make withdrawals from the 6th policy year onwards till the end of the
policy term. Every year withdraw up to 10% of the value of units.

 Additional credits payable as a percentage of the initial annual premium are paid
along with the death or maturity benefit.

 Additional insurance for 10 years after the maturity, for an amount of 50% of the Sum
Assured

3.4.3 Savings Plans

 Flexibility to make additional investment with the help of the top-up facility.

 Flexibility to increase / decrease your annual premium Amount

 Facility of Automatic Premium Payment- With this facility you can take a temporary
break from premium payment.

 Total transparency with the premium allocations, and other charges declared upfront.

 The guaranteed value of the unit fund is the value of all invested premiums
(premiums net of all charges) along with the declared bonus interests.

With Automatic Premium Payment facility, you can avail a temporary break from
premium payment for a maximum of 1 year. This facility is available once if the premium
paying term is less than 15 years and twice, if it is 15 years or more. You can also
enhance your policy by adding Accident & Disability Benefit Rider , Waiver of Premium
Rider and Critical Illness Rider. A regular premium unit-linked insurance plan with an
assurance of Capital Guarantee# An ideal plan for your long-term savings and protection
requirement.

The key features of the plan are:

 Flexibility to choose a specific level of protection (Sum Assured), based on a

multiple of the annual premium. You can also choose the term of the plan.
 At the end of the term, the higher of the value of units or the guaranteed value is paid.
On death, Sum Assured along with the higher of value of units or the guaranteed
value is payable

 Additional credits payable as a percentage of the initial annual premium are paid
along with the death or maturity benefit.

 Additional insurance for 10 years after the maturity, for an amount of 50% of the Sum
Assured.

 Flexibility to make additional investment with the help of the top-up facility.

 Flexibility to increase / decrease your annual premium amount

 Facility of Automatic Premium Payment- With this facility you can take a temporary
break from premium payment.

 Total transparency with the premium allocations, and other charges declared upfront.
The guaranteed value of the unit fund is the value of all invested premiums
(premiums net of all charges) along with the declared bonus interests.

With Automatic Premium Payment facility, you can avail a temporary break from
premium payment for a maximum of 1 year. This facility is available once if the premium
paying term is less than 15 years and twice, if it is 15 years or more.

The capital guarantee is applicable only on the invested premium and the declared bonus
interests. You can also enhance your policy by adding Accident & Disability Benefit
Rider, Waiver of Premium Rider and Critical Illness Rider.

A unit-linked insurance plan with an assurance of Capital Guarantee which offers you the
benefit of a limited premium payment term. An ideal plan for protection with wealth
creation that offers the flexibility of a limited premium paying term.

 Flexibility to choose a premium payment term of 5, 7 or 10 years for a maturity term

of 10, 15 or 20 years respectively.
 Flexibility to choose a specific level of protection (Sum Assured), based on a multiple
of the annual premium.

 At the end of the term (maturity), the higher of the value of units or the guaranteed
value is paid. On death, Sum Assured along with the higher of value of units or the
guaranteed value is payable.

 Additional credits payable as a percentage of the initial annual premium are paid
along with the death or maturity benefit.

 Facility to make withdrawals from the 6th policy year onwards till the end of the
policy term. Every year withdraw up to 10% of the value of units

 Flexibility to make additional investment with the help of the top-up facility.

 Flexibility to increase / decrease your annual premium amount

 Total transparency with the premium allocations, and other charges declared upfront.

 The guaranteed value of the unit fund is the value of all invested premiums
(premiums net of all charges) along with the declared bonus interests.

 The capital guarantee is applicable only on the invested premium and the declared
bonus interests. You can also enhance your policy by adding Accident & Disability
Benefit Rider and Critical Illness Rider.

 Presenting Premier Life – The Preferred plan for the Preferred Customer. The key
features of the plan are:

 Limited premium payment option: Choose from among a 3, 5, 7 or 10 year premium

paying term.

 Choice of sum assured: Choose a sum assured, which is a minimum multiple of 1 and
a maximum multiple of 25 times the annual contribution.

 Additional allocation of units on a periodic basis.

 Facility to top-up your investment any time you have surplus funds.
 Choose from among four funds, based on your investment objective and risk appetite.

Flexibility to decrease your sum assured.

 Add-on riders to protect you against any eventuality.

 Loans against the policy.

You can also enhance your policy by adding Critical Illness

Rider, Accident & Disability Benefit Rider.

Presenting Life Time – unit –linked plans that meet your changing needs

over a lifetime. These solutions have been developed to meet your savings, protection

and investment needs at every stage in life.

Protection

 Choose a specified level of protection (available only with Lifetime).

 Two levels of Sum Assured to choose from (available only with Lifetime II).

 Flexibility to increase or decrease your sum assured.

 Add-on riders to protect you against any eventuality.

Savings

 Flexibility to increase or decrease your contribution.

 Facility of Premium Holiday, wherein the policy continues even if there is a

temporary break in the payment of annual contribution (available only with Life
Time).

 Facility of Automatic Cover Continuance, wherein the policy continues even if there
is a temporary break in the payment of annual contribution

 Facility to top-up your investment any time you have surplus funds.
 Additional allocation of units on a periodic basis.

 Loans against the policy.

Investment

 Choose from among four funds, based on your investment objective and risk appetite.

 Choice to switch between investments options (4 free switches every policy year).

You can also enhance your policy by adding Critical Illness Rider, Major Surgical
Assistance Rider, Accident & Disability Benefit Rider, Accident Benefit Rider (available
only with Life Time) and Waiver of Premium Rider. An insurance plan that gives added
protection, savings and multiple options, all in one!

 The flexibility to choose your premium contribution.

 The flexibility to choose amongst three levels of cover (in the form of sum assured)
for the same amount of total annual contribution.

 The flexibility of shifting between the three levels of cover, as you require.

 The flexibility of receiving your maturity proceeds as a lump sum or in equal annual
installments over 3 or 5 years.

You can also enhance your policy by adding Variety of Riders An insurance plan that
gives you added protection, savings, multiple options, plus the power of liquidity.

 The flexibility to choose your premium contribution.

 The flexibility to choose amongst three levels of cover (in the form of sum assured)
for the same amount of total annual contribution.

 The flexibility of shifting between the three levels of cover, as you require.

 The flexibility of receiving your maturity proceeds as a lump sum or in equal annual
installments over 3 or 5 years.
  The flexibility of withdrawing up to 10% of the accumulated value of your policy,
after the first 5 policy years.

You can also enhance your policy by adding Variety of Riders An ideal plan for those
who want to accumulate funds on a regular basis while enjoying insurance protection.

 Guaranteed Benefits: Guaranteed additions @ 3.5% of the Sum Assured, compounded

annually for the first 4 years of the policy.

 Extended Life Cover: An extended cover for 5 years after the maturity of the policy, for
50% of the sum assured, at no extra cost.

 Maturity Benefit: At the end of the term, the policyholder receives the full sum assured,
the guaranteed additions and the vested bonuses.

 Death Benefit: The beneficiary receives the sum assured, the guaranteed additions and
the vested bonuses in case the life assured were to meet with an unfortunate event. In
case the life assured is aged 7 years or less, the basic premium paid will be returned.

You can also enhance your policy by adding Critical Illness Rider, Major Surgical
Assistance Rider, Accident & Disability Benefit Rider, Waiver of Premium Rider (WOP)
As a responsible parent, you will always strive to ensure a hassle-free, successful life for
your child. However, life is full of Uncertainties and even the best-laid plans can go
wrong. Here’s how you can give your child a 100% safe and assured tomorrow, whatever
the uncertainties. Smart Kid is especially designed to provide flexibility and safeguard
your child’s future education and lifestyle, taking all possibilities into account. Choose
from amongst a basket of 4 plans:

 Smart Kid regular premium

 Smart Kid unit-linked regular premium

 Smart Kid unit-linked regular premium II

 Smart Kid unit-linked single premium II

 3.4.4 Child Plans

All these plans offer you:

 Financial Benefits: Regular payments at critical stages in your child’s life, like Board
examinations, Graduation and Post-graduation.

 Total peace of mind, even if you are not around

 Sum Assured is paid immediately: Ensures that your loved ones stay financially secure,
even in your absence.

 All future premiums are waived: Ensuring that your family is not financially burdened
in your absence.

 Policy benefits continue: The educational benefits of the policy continue, ensuring that
your child can realize his or her dreams without any hassles.

 Development Allowance: Smart Kid guarantees regular income to secure your child’s
educational career and also ensures his or her all-round development, for a nominal
additional amount. The Income Benefit Rider takes care of this through an annual
payment of 10% of the sum assured, to your child, till the maturity of the policy, in the
unfortunate event of the death of the parent. All Smart Kid plans can be enhanced with
the Accident & Disability Benefit Rider and Income Benefit Rider . You can also an
Accident Benefit Rider to a Smart Kid Regular Premium policy, and a Waiver of
Premium Rider (WOP) to Smart Kid unit-linked regular premium policy.

Life Link II is a unique plan that combines the security of a life insurance policy with the
opportunity of enjoying high returns on your investments, without the market

risks compromising on the protection of your family!

Death Benefit: The Sum Assured under the product has 2 options, either 500% of the
initial premium or 105% of the initial premium. In the event of an unfortunate death, the
beneficiary will receive higher of the value of units or the initial death benefit, less any
withdrawals.
Withdrawal Benefit: One can make partial withdrawals from the accumulated value of
the policy after completion of one policy year.

Flexibility: Choose from four fund options, based on your investment objective and risk
appetite. If at a later stage your financial priorities change, you can switch between the
various fund options, absolutely free, 4 times a year.

3.4.5 Investment Plans

Life Expectancy has been rising rapidly and today you can expect to live longer than your
earlier generations. For you, this increase will mean a longer retirement life, stretching
into a couple of decades. BSLI Retirement Solutions that combine the best of insurance
and investment. These solutions are developed to ensure your peace of mind for the years
to come.

1. Why plan for retirement?

2. How much should I set aside for retirement?

3. The impact of inflation on your retirement savings

4. Why plan early?

5. About Annuities

3.4.6 Retirement Plans

Why plan for retirement?

For too many people, the joy of retirement after years of hard work is eclipsed by the
financial uncertainties that it brings. Despite all the planning and saving, you can never
sure whether your money will last a lifetime. Retirement planning offers a way to ensure
a more enjoyable, stress free tomorrow. A prudent plan will ensure that increasing life
expectancy, higher inflation and increasing taxes do not eat away into your hard earned
savings.
How much must I set aside for retirement?

To ensure a comfortable retired life, you would be wise to invest money into additional
avenues like pension plans. How much you need to invest can be answered by answering
some questions such as:

1. How long do you have to save that amount before retirement?

2. Where can you invest your retirement money?

3. How much risk are you willing to take on your investments?

In an era of competitive parity, the only asset that makes a decisive difference between
corporate success and failure is the quality of human capital. Employee benefits have
proven to be an excellent tool to optimize the retention of talent and improve an
organization’s bottom-line. The quality of an organization’s employee benefits establishes
and maintains a company's image as a caring employer. Optimum care of employees is a
long-term investment that results in a sustained competitive advantage for an organization
in the times to come.

3.4.7 Group Solutions

BSLI Group Solutions Advantage:

 An integrated basket of employee benefits solutions that offer incomparable flexible

benefits.

 Sound investment management that focuses on safety, stability and profitability of the
portfolio.

 Personalized financial planning for your employee that takes care of his/her changing
financial needs at every stage of life.

 Quality service initiatives and transparency across all operations, promising

superlative operational efficiency.
Group Term Assurance: Helps provide affordable cover to members of a group.

Group Gratuity Plan: Helps employers fund their statutory gratuity obligation in a
flexible and hassle-free manner.

Group Superannuation Plan: A flexible scheme (defined benefit and defined

contribution) to provide a retirement kitty for each member of the group.

3.4.7.1 Group Term Assurance:

BSLI flexible group term solution helps provide affordable cover to members of a group.
The cover could be uniform or based on designation/rank or a multiple of salary, and can
be extended to all employees between the ages of 18 and 65 years.

The benefit under the policy is paid on the event of the member’s death to the beneficiary
nominated by the member. It is a one-year renewable policy where one master policy
covers all proposed employees comprising the group, with a minimum group size of 25
persons. New members can join the group and outgoing members can leave the group at
any point during the policy term.

Highlights include:

 Greater convenience for the employees with relaxed underwriting and medical
requirements.

 "Free Cover Limits" with simplified underwriting depending upon the number of
employees in the group and the level of cover chosen.

 Guaranteed benefit: On death during the term of the contract (while in Service), the
sum assured will be paid to the beneficiary of the employee.

 Choice of additional coverage in form an Accident and Disability Benefit Rider and
Critical Illness Cover

 Premium is viewed as a business expense in the year of payment.

3.4.7.2 Group Gratuity Plan:

BSLI group gratuity plan helps employers fund their gratuity obligation in a scientific
manner. Employers can avail of the tax benefits as applicable to approved gratuity funds.
The plan can also be customized to structure schemes that can provide benefits beyond
the statutory obligations. Highlights include:

 Wider choice of investments with Market Linked Plans - to meet the diverse
financial goals. We offer 4 investment options (short-term debt, debt and balanced
and capital guarantee plan) where investments will be made in accordance with the
fund objectives.

 Transparency through Daily disclosure of Unit Value and regular disclosure of the
portfolio of each of the investment option

 Flexibility through switching and contribution redirection option to enable

reshuffling of portfolio

 Bundled Life Cover greater value to the employee by packaging life insurance
covers with the gratuity, with minimal amount of underwriting.

 Actuarial services to provide a scientific estimation of the gratuity liability.

 Low explicit charge structure with the conditions for exit specified upfront.

 Enhanced service levels through faster claim settlement, easier access to information
and regular statements.

 Complete end to end solution in the legal and regulatory approval process for scheme
set up or transfer.

Employee Benefits:

 The contribution made by the employer is not included in the value of taxable
perquisites in the hands of the employee.

 Gratuity received up to Rs 350000 is exempt from Income tax under Sec 10(10)
 Annual contribution up to 8.33% of salary bill in a financial year is allowed a
deduction for the purpose of computation of profits and gains of business.

 Contribution towards past service liability is allowed as deduction as per the Income
Tax rules.

3.4.7.3 Group Superannuation Plan:

BSLI Superannuation Scheme (for both Defined Benefit and Defined Contribution
funds) offers substantial benefits to both employers and employees. The employer and
employee can avail of tax benefits applicable to an approved superannuation trust. The
scheme will provide for a retirement fund for each participating employee. An employee
would be able to choose from various annuity options or opt for partial commutation of
corpus at retirement.

Highlights include:

 Wider choice of investments with Market Linked Plans – to meet the diverse
financial goals. We offer 5 investment options (short-term debt, debt, balanced,
growth and capital guarantee plan) where investments will be made in accordance
with the fund objectives.

 Control - Each member/employer can exercise greater control over investments by

choosing one or more of the investment options.

 Multiple Annuity Options - 5 annuity options and open market option

 Transparency - Transparency through Daily disclosure of Unit Value and regular

disclosure of the portfolio of each of the investment option

 Flexibility - Flexibility through switching and contribution redirection option to

enable reshuffling of portfolio

 Low explicit charge structure with conditions for exit specified upfront.
 Enhanced service levels through faster claim settlement, easier access to information
and regular statements.

 Complete end to end solution in the legal and regulatory approval process for
scheme set up or transfer BSLI Rural Products are designed to meet the needs of the
rural consumers. These products offer the following features:

1. Low and Affordable Premiums

2. Life Cover

3. Savings Option

4. Hassle free procedure

3.4.8 Rural Plans

BSLI offers 2 specially designed rural plans.

a) BSLI – Endowment Plan

b) BSLI - Regular Premium

BSLI Endowment Plan:

BSLI offers the following features:

 Life Cover and Savings

 Regular Premiums

 Age at entry 18 - 45 Yrs

 Premium Mode Half Yearly / Yearly

 Term 5,10,15 Yrs

 Sum Assured Rs.5,000 -20,000

 Premium / Year Rs. 507 - 553 ( SA: Rs.10,000)

 Maturity/Death benefit Sum Assured

BSLI - Regular Premium:

BSLI is a regular premium policy with the following features:

 Individual policy

 Only Life cover

 Term - 3 & 5 Yrs

 Age independent premium

 Age at entry 18 - 45 Yrs

 Sum Assured Single

 Premium / Year Rs 50 – 200

 Maturity/Death benefit Rs.5,000 - 20,000

 Death Benefit Sum Assured

3.5 IRDA

The insurance sector has been opened up in India, as there was an urgent need. The
international experience indicates those country with a liberalized insurance sector have
witnessed a rapid growth in premium volumes enhancing the domestic saving rate. This
happened in China, Malaysia and Singapore where a competitive market has led to
improvement in Services and quicker settlement of claims. It is also important to note
that competition will bring about advancement in information, communication and
technology. And rightly therefore a decision was taken by the Government of India to
open up Insurance sector. The establishment of IRDA in the month of April 2000 has
been important development in this direction, making the end of monopoly in the
insurance sector.
3.6 WHY INSURANCE IN INDIA

 Only 22% of the insurance population has been extended cover. Market penetration is
low and the potential to exploit is high.

 Insurance premium per capita is very low.

 Lack of comprehensive social system benefit and welfare means that demand for
pension products is high.

 Huge middle class of approximately 300 Million.

 Existing insurance company score low on customer service front.

The insurance market registered growth in the Asian region even though India’s share in
global insurance is less than 0.5% (1988) as compared to USA (24.2%) and Japan (21%).
Studies have revealed that in an emerging market, as disposable income rises, Insurance
premiums as a ratio of GDP shoots up. The confederation of Indian Industry projected a
growth of Life Insurance premiums from Rs.350 Billion at present to Rs.140 Billion. The
Growth of non-life insurance premium is expected to increase from 75 billion to 375
billion. Out of which, only 10% is tapped by the existing insurer.

Insurance even more than banking is a volume game. A very exclusive approach in view
is unlikely to provide meaningful numbers. Currently, insurance is bought for the purpose
of tax-benefits. A higher percentage of business is in the rural market. The share of rural
new Business insurance total new business is 55% in terms of policies and 47% in terms
of sum assured. However, this needs to be viewed in the light of some recent issues that
have been raised regarding as to what constitutes the rural market. Therefore, private
insurers will be best served by middle market approach, targeting the customer segments
that are presently unexploited.

How many Indians are aware that LIC has more than 60 Products and GIC has more than
180 Products? Not only there is a reduction in the premiums of Life Insurance products
have long overdue since Indian morality rate has decreased three folds in the last 50
years. There is also scope to increase the yield on life insurance policies (presently 6%)
with proper risk management in place.

It is been debated that insurance business does not produce profit in the first five years
cross subsidization is a feature of Indian market. Even the first portfolio vote that is
considered profitable, cross subsidizes other departments. Tariffs reduction is likely to
reduce profits; further insurers have to institute proper claims management progress in
order to extract efficiencies. At present life insurance business in the country is taxed at
12.5% of the profit in financial year. The government is soon to present a new model of
taxing life insurance companies at international rates. New entrants should be well
advised to look ahead to the stage where brand strength will be a competitive advantage
and sketch their alliances accordingly. In fact, we believe that alliance related to
distribution rather than to produce or technology will prove most valuable in the long run.

Banks and financial companies will emerge, as attractive distribution channel for this
insurance trend will be led by two factors, which already apply in other world market.
First Banking food insurance, fund management and other financial services companies
are being to increase their profitability and provide maximum value to their customers.
Therefore, they are themselves looking for a range of products to distribute. In other
market notably Europe; this has resulted in bank assurance. Bank entering into the
insurance business in India to bank hope to maximize expensive existing network by
selling a range of products more of a loss alliance between insurance and bank than a
formal ownership. Some Indian entrants like ICICI, HDFC and Reliance hope to ride
their existing network and customer bases.
Literature Review :- Asurvey of literature refers to “Performance Evaluation of
Birla Sun Life Insurance A study of Jagadhri Region ” Specifically have been mase to
identify the current status of research on topic. (Chapter-2)The obstract all the statics has
been given.

Chapter-2
LITERATURE REVIEW
LITERATURE REVIEW

Ramkumar (2003) studied the role of relationship marketing in life insurance sector. In
today’s impersonal marketplace, customer satisfaction, retention and loyalty are rapidly
become the thing of the past. Relationship marketing brings them back to the forefront,
providing easy to apply solutions and strategies for establishing meaningful bonds with
customers and turning them into reliable, life-long partners. Relationship marketing can
be defined as the process to “identify and establish, maintain and enhance and, when
necessary, terminate relationships with customers and other stakeholders at a profit so
that the objective of all parties involved are met; and this is done by mutual exchange and
fulfillment of promises”. The important objectives of relationship marketing are to
acquire new customers, maintain and enhance existing relationships with existing
customers, reactivation of ex-customers, and handling of customer terminations. The key
objective of relationship marketing is to establish a one to one relationship with all the
customers. This may sound like a daydream few years ago; but thanks to the technology
breakthrough and technological solutions providers it is very much of reality.

Rajesham (2004) revised that insurance sector has not only been playing a leading role
within the financial system in India but also has significant socio-economical function,
making inroads into the interiors of the economy and is being considered as one of the
fast developing area in the Indian financial sector too. It has also been facilitating
economic development with an objective to build an efficient, effective and a stable
insurance business in India as well as a strong base to both the needs of the real economy
and socio-economic objective of the country. It has been mobilizing long term saving
through life- insurance to support economic growth and also facilitating economic
development, insurance cover to a large segment of people, while the non-life insurance
and reinsurance firms in India are main providers of risk financing for manmade disasters
and natural catastrophes. Thus, both life insurance and non-life insurance are found
playing a significant role in avoiding or facing the risk of life and business enterprises
and also aiding to certain extents for their smooth sailing. Therefore, an attempt is made
in this paper to highlight the developments of insurance sector in India in a phased
manner and to examine the reasons for the entry of private and foreign insurance players
into Indian insurance market and to present the changing scenario of insurance business
in India. It is also attempted to examine the growth of Indian insurance sector during the
period of pre and post liberalization and finally to suggest the strategies and challenges
need to be adopted by Indian insurance sector in the light of global scenario so as to
enhance its market share.

Mehra (2005) studied that economic growth in the emerging markets has time and again
outpaced the developed and industrialized countries. Alongside the rising importance of
emerging economics, their life insurance sectors are also drawing more attention. It’s
been four years since the life insurance sector was opened up for private players in India.
The reasons that prompted the government to bring in reform in this sector are well
known. While the public sector life insurance companies made enormous contribution in
the spread of awareness about insurance, and expanded the market, it was recognized that
their reach was still limited, the range of product offered restricted to the services to the
consumer inadequate. It was also felt that the rapid economic growth witnessed in the 90s
couldn’t be sustained without a thriving insurance sector. Today, the private accounts for
nearly 20% of the market. The market share of the private players has to be seen in the
context of this enlarged market. There has been a flurry of private players providing a
wide range of innovation products, services and customized solutions. Emerging markets-
such as China, India, Mexico, and Russia- are home to some 86% of the world’s
population. Collectively, they account for 23% of world economic output. Yet, insurance
business is underdeveloped in these markets. In fact, India as a country is under-insured.
Only 35% of the 250 million insurable population is insured. Exploiting the growth
potential of emerging insurance market- India and China are in the spotlight. Both the
countries currently attract a lot of attention due to their size, strong growth performance
and favorable regulatory changes. To begin with, India and China are the most populous
countries and both have sustained impressive economic growth in the last decade.
Between 1993 and 2003, annual real GDP growth averaged 8.9% in china and 5.9% in
India. Interestingly, both markets have gone through a similar period of nationalization of
their insurance business, although China revoked state monopoly earlier than India.

Calandro and Flynn (2005) studied that many insurance companies vigorously pursue
top-line growth, even though it has the potential to develop unprofitably over time. The
time lag(or tail) between when insurance is sold and when claims are paid generates risks
unique to insurance companies. Furthermore, the insurance market is both mature and
efficient (i.e. its level of completion is very high), which means that profitable
opportunities are both rare and untenable unless protected by competitive advantage.
There currently no practical measure available ( of which the authors are aware ) at the
business unit level to evaluate insurance premium growth in the face of the industry’s
risk, impairing executives’ ability to assess segment opportunities (and hazards), thus
hampering strategies decision making. The purpose of this paper is to introduce a
practical measure developed by the authors called Underwriting Return (UWR) which
aims at helping to alleviate this situation. The paper introduces UWR which was
developed during the course and scope of the authors’ work in the insurance industry, and
their research into applying value-based management to that industry. The paper finds
that UWR is a practical measure that property and casualty executives can use at the
business unit level to help quantify market segments to grow, hold, harvest and abandon.
A variety of strategies analysis tools, such as the popular Boston Consulting Group
matrix, are utilized today. In general, the application of such tools is hampered by an
imprecision of measurement but each can add a level of insight to executive’ resource
allocation options. UWR can further aid insurance executive in strategic analysis by
helping to quantify in which segments to compete, and which ones to abandon. The paper
demonstrates the utility of the measure in an example based on an actual analysis.

Anon (2005) studied all the aspects of the Indian insurance industry along with an
outlook for potential developments. The report examines the trends in industry, besides
the competitive landscape offers a brief analysis on the main players in the industry. It
contains an assessment based on PEST analysis, covering the relevant political,
economic, social and technological factors that have implications for the development of
the industry. The report also evaluates the industry within th Michael porter framework.
It goes on to describe the competitive landscape and provides a comparative financial
study of the major players in the industry. Insurance constitutes an important and
increasing proportion of the gross financial savings of the household sector in india. The
private sector, in life as well as the non-life segments gained more prominent in the life
insurance sector. The factors that have driven change include: Increasing Gross Financial
Household Savings. Deregulation in the Indian Insurance Market. Increase in dependency
ratio However, dearth of new products represents a major implication.

Sethi (2005) studied the concept of banc assurance in India. Banc assurance has mostly
been a phenomenal success and , although slow to gain pace, is now taking off across
Asia, especially now that banks are starting to become more diverse financial institutions,
and the concept of universe banking is being accepted. In India, the signs of initial
success are already there despite the fact that it is completely new phenomenon. The
factor and principles of why it is a success elsewhere exists in India, and there is no doubt
that banks are set to become a significant distributor of insurance related products and
services in the years to come.

Rao (2005) analyzed that the insurance industry has grown by 83 percent since the
opening up the sector. Remarking on the performance of the insurance industry, C S Rao,
Chairman, Insurance Regulatory & Development Authority (IRDA), said public
sector players have not suffered with the opening up of the sector. Insurance premium
income has risen to Rs 82,415 crore (Rs 824.15 billion) in 2003-2004, against Rs 45,000
crore (Rs 450 billion) in 2000-01. Rao expects premium income in the life insurance
sector to rise further by 15-16 percent and non-life insurance premium by 14 percent in
2005-06. The growth comes on the back of healthy demand from the manufacturing
sector.

Kannan (2006) reviewed in their study that the market potential for private insurance
companies is found to be greater in the long run as most of the Indians are of the opinion
that, private insurance companies would be able to perform well in the future. The private
and foreign insurance companies have too immediate steps in appointing more number of
agents and/or advisors in addition to the employees as it has found that agents are the best
channel to reach the general public regarding selling of insurance products. The private
and foreign insurance companies have to concentrate on the factors like ‘prevention of
loss’, ‘assured returns’ and ‘long term investment’. They can also focus on an insurance
amount of Rs. 1-2 lakhs with ‘money back policies’. Hence, the market has potential. The
private and foreign insurance companies that are taking immediate steps can tap it.

Sasidharan Sanjeev (2006) studied that the insurance sector in India has come a full
circle from being an open competitive market to nationalization and back to a liberalized
market again. Tracing the developments in the Indian insurance sector reveals the 360-
degree turn witnessed over a period of almost two centuries.

Athma (2007) reviewed that in globalization policy, insurance company face a dynamic
global business environment. The existing insurers are facing challenges from non-
traditional competitors who are entering into the retail market with new approaches and
through new channels. While quality of service is the main influencing factor in the
finance market, in the insurance market, product attributes are the main factors that
influence the success of insurance companies. Though, there has been growth in life
insurance industry over the past few years, comparatively, insurance penetration in India
has not increased in spite of the considerable growth potential of Indian life insurance
market. With liberalization, many insurance players have entered this field from the year
2000, and the task before them now is to identify what factors influence in decision-
making. In this context, this study assumes importance. The main objective of the paper
is to identify the factor s which the consumers take into consideration before selecting life
insurance products and determine the extent to what these factors are taken into
consideration for choosing the life insurance products. This research is carried out by
collecting primary data from 200 policyholders of Life Insurance Corporation on India
through self-structured questionnaires. The sample consists of 100 policyholders from
urban area and 100 policyholders from rural area. C2 test is employed to test if there is
any association is used to find out which factor has more influence. Both, product and
non-product attributes have been found to be important in selecting a policy but they have
been rated differently. Rating is different in urban and rural areas.
Hsieh (2008) investigated the relationship between customer perception of public
relations (PR) and customer loyalty to test for the moderating role of brand image in that
relationship. Data were collected in a survey of customers of the insurance industry in
Taiwan, using a questionnaire designed on the basis of focus-group discussions with 30
consumers. Hierarchical regression analysis of data from 367 respondents was used to
test two hypotheses. The results show that consumers’ perception of an organization’s PR
practice is an antecedent of loyalty. The impact of public relation perception (PRP) on
customer loyalty is stronger and more significant when the brand image is favorable. The
effect of PRP on customer loyalty is negligible. This study extends previous research by
examining the moderate of brand image. Further research is indicated, to identify the key
moderators of the driving force of PR in relation to customer relationship marketing. This
paper proposes an original eight-item scale for the assessment of customer PRP activity,
which can be applied in practice to measure its effectiveness under different brand-image
conditions.
 Chapter-3
RESEARCH METHOLOGY
RESEARCH METHOLOGY

1.2. Need

Life insurance is chiefly a risk management tool, meant to offer financial protection to
your dependents in the unfortunate event of your death. But in India, as the most other
developing market, life insurance has come to present more than just risk cover. This
particular study is conducted on the topic titled “Performance Evaluation of Birla Sun
Life Insurance Company”. The aim of this research study is to know about life insurance.
It is done to know the perception of people towards the insurance policy. Bancassurance
has mostly been a phenomenal success and, although slow to gain pace, is now taking
across Asia, especially now that banks are starting to become more diverse financial
institutions, and the concept of universal banking is being accepted. In India, the signs of
initial success are already there despite the fact that it is a completely new phenomenon.

1.2.2 OBJECTIVE, NEED & SCOPE OF THE STUDY

 To determine and analyze the Market Potential of the Birla Sun Life Insurance
Company.

 To know the the customer awareness regarding the Birla-sun life insurance and
its products.

 To study and determine the competitor position in the market.

 To know the future plans of the people for buying the policies.

1.2.3 Scope

The study is restricted to Jagadhri region only. The study also analyses the preferences
regarding different life insurance policies of Birla-sun life insurance. For this study 100
respondents of Jagadhri are chosen. Now days there are lot of private companies in
market so it’s important to know what motivates the customer to buy the policy. Birla sun
life is the fastest growing private insurance company in India. It determines market share
of the various private companies in India.

1.3 RESEARCH METHODOLOGY

Research means a search for knowledge or gain some new knowledge and methodology
can properly refer to the theoretical analysis of the methods appropriate to a field of study
or to the body of methods and principles particular to a branch of knowledge.

1.3.1 Research Design

A research design is the arrangement of conditions for the collections and analysis of data
in a manner that aims to combine relevance to research purpose with economy in
procedure.

1.3.2 Universe

The universe of the study is Jagadhri.

1.3.3 Sample Unit

The sample unit pertaining to the study is 100 respondents of Jagadhri region.

1.3.4 Sample Size

The sample size of 100 served the purpose of the study.

1.3.5 Sample Method

The sampling method used is non-probability convenience sampling.

1.3.6 Methods of data collection

1.3.6.1 Data collection

The word data means any raw information, which is either quantitative or qualitative in
nature, which is of practical or theoretical use. The task of data collection begins after a
research problem has been defined and research design chalked out. While deciding about
the method of data collection, the researcher should keep in mind that there are two types
of data primary and secondary.

 Primary data

This is those, which are collected afresh and for the first time, and thus happen to be
original in character. There are many ways of data collection of primary data like
observation method, interview method, through schedules, pantry reports, distributors
audit, consumer panel etc. The Team Managers and employees of both the Department
were consulted to get information about procedure of both the online and off line share
trading. But the method used by us for the primary data collection was through
questionnaires.

Questionnaire Method

For the collection of primary data I used questionnaire method. A formal list of questions,
which are to be asked, is prepared in a questionnaire and questions are asked on those
bases. There are some merits and demerits of this method. These as under:

Merits:

1. Low cost even when universe is large.

2. It is free from bias of interviewer.

3. Respondents have proper time to answer.

4. Respondents who are not easily approachable can also be reachable.

5. Large samples can be made.

 Secondary data

These are those data, which are not collected afresh and are used earlier also and thus
they cannot be considered as original in character. There are many ways of data collection
of secondary data like publications of the state and central government, reports prepared
by researchers, reports of various associations connected with business, Industries, banks
etc. And the method, which was used by us, was with the help of reports of the company.

1.3.7 Sample Size

I have met 250 people, to know about their perception regarding companies and there
policies after that I have taken 25 People they have fill up the questionnaire and given
response.

Chapter-4
DATA ANALYSIS AND
INTERPRETATION
DATA ANALYSIS AND INTERPRETATION

1.Which Birla life plan do you have?

Table 4.1 : Types Of Plan

Types of plan No of respondent Percentage

Life insurance plan 68 68%

Health insurance plan 10 10%
Retirement plan 22 22%
Total 100 100%

Figure. 4.1 : Types Of Plan

Analysis & Interpretation

The objective of first question was people having an account with BSLI are having which
type of plan. In the survey of 100 people it was found that 68% have life insurance plan,
22% have retirement plan and 10% were having health insurance plan.

2.Are you satisfied with the plan you have?

 Table 4.2 : Satisfaction With The
Plan
People satisfied with plan No of respondent Percentage

Yes 72 72%
No 28 28%
Total 100 100%

Figure 4.2 : Satisfaction With The Plan

Analysis & Interpretation

The objective of second question was to find out that how many people are satisfied with
the plan. In the survey of hundred people it was found that 72% people are satisfied with
the plan while 28% people are not satisfied with the plan.
3.Are you satisfied with the service provided by the company about new schemes
and plans?

Table 4.3 : Satisfaction With The Services Of The Company

Are people satisfied with service No of respondent Percentage

provided by company
Yes 82 82%
No 18 18%

Total 100 100%

Figure 4.3 : Satisfaction With The Services Of The Company

Analysis & Interpretation

The objective of third question was to find out whether people are satisfied with the
services provided by the company. In the survey it was found that 82% people are
satisfied with the services provided by the company while 18% people are not satisfied
with the services.
4. Are you interested to make more investments in BSLI?

Table 4.4 : People Want To Investment More In BSLI

People want to investment more in No of respondent Percentage

BSLI
Yes 67 67%

No 33 33%

Total 100 100%

Figure 4.4 : People Want To Investment More In BSLI

Analysis & Interpretation

The objective of fourth question was to find out that do people want to invest more
money. It was found that 67% people want to invest more money while 33% people don’t
want to invest more money.

5.Number of people have other insurance plan apart from BSLI

 Table 4.5 : People Having Other Insurance Plan Apart From BSLI

People having other No. of people Percentage

insurance plan apart from
BSLI
Yes 78 78%
No 22 22%

Total 100 100%

Figure 4.5 : People Having Other Insurance Plan Apart From BSLI

Analysis & Interpretation

The objective of fifth question was whether people have insurance plan apart from BSLI.
In the survey it was found that 78% people have insurance plan other than BSLI while
22% don’t have any other plan.

6.Percentage share of different companies in insurance sector

 Table 4.6 : Share of Different Companies

Name of different companies Percentage

Life Insurance Company 60%
Birla Sun Life Insurance 9%
Bajaj Aliyanz 11%
ICICI 8%
Other 12%
Total 100%

Figure 4.6 : Share of Different Companies

Analysis & Interpretation

The objective of this study is to find out the percentage share of different companies in
the insurance sector. it was found that 60% is occupied by LIC,9% by BSLI,11% by Bajaj
aliyanz,8% by ICICI and 12% by other companies.

7.Market share of private companies

 Table 4.7 : Market Share of Private Companies

List of companies Percentage

ICICI pru 22.1%
Bajaj Alliaz 13.8%
SBI 9.8%
HDFC standard 7.7%
Birla sun life insurance 7.0%
Reliance life 8.0%
Max new York 8.0%
Tata AIG 7.0%
Aviva 3.1%
Kotak Mahindra 3.6%
Met life 5.3%
ING vysya 2.1%
Shriram life 1.1%
Other 1.1%
Total 100%

Figure 4.7 : Market Share of Private Companies

Analysis & Interpretation:

The objective of this study is to find out the market share of different companies in the
insurance sector. It was found that icici pru is having the maximum share that is 22.1%.
.1 FINDINGS

 To be successful in marketing of insurance products, the entire business scenario has

to be taken into account.

 During the study to be found that majority of people are aware of life insurance
sector.

 During the survey it was observed that major source of information for consumer are
television and newspaper and least preference are given to magazines, agents and
friends.

 Attractive schemes and brand image are the most important factor that influences the
buying behavior of the consumers.

 Majority of respondents will shift to any other insurance company.

 People are not satisfied with the opted insurance. It was found that the reason for the
dissatisfaction of consumer is high premium, delay in claim settlement and poor after
sale service.

 So to achieve a greater insurance penetration, insurance sector companies have to

create a more vibrant and competitive industry, with greater efficiency, choice of
products and value for customers.
 CHAPTER-5

SUMMERY AND CONCLUSION

6.1 CONCLUSION
The market potential for private insurance companies is found to be greater in the long
run as most of the Indians are of the opinion that, private insurance companies would be
able to perform well in the future. The private and foreign insurance companies have to
take immediate steps in appointing more number of agents and/or advisors in addition to
the employees as it has been found out that agents are the best channel to reach the
general public regarding selling of insurance products. The private and foreign insurance
companies have to concentrate on the factors like 'Prevention of Loss', 'Assured Returns'
and 'Long term Investment'. They can also focus on an insurance amount of Rs. 1 – 2
lakhs with 'money back policies'. Hence, the market has potential. The private and foreign
insurance companies that are taking immediate steps can tap it easily & rapidly.

6.2 RECOMMENDATIONS

1. Even though most of the policy holders are satisfied with policies, plans they have
but some new attractive insurance plans should be introduce to bind them not to
switch over to other companies insurance plans.

2. The company should find out the no. of people who are not having any of the
insurance plans through an intensive market research and motivate them to get
insured.

3. Leveraging technology to service customers quickly, efficiently and conveniently.

4. Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders.

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

6. Company should provide full information to the customers before targeting so

they can take interest.
6.3 LIMITATIONS

 Some of the respondents were not cooperative.

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

 As the sample size is small compared to the total population, therefore there can’t be
full accuracy.
 The time was limited.

 Area was limited.

BIBLIOGRAPHY
 BIBLIOGRAPHY

 COMPANY PROFILE- Birla Sun Life Insurance”

 Kothari C.K.Research Methodlogy
 Gupta.D(1990)” personal taxation and private financial saving in India”

Web Sits
 http://www.scribd.com/doc/49859793/BIRLA-SUNLIFE-INSURANCE-
SERVICES
 www.scribd.com/doc/38589716/Birla-Sunlife-Insurance-100
 www.birlasunlife.com
ANNEXURE
 Questionnaire
Name:...............................................................

Address:
………………………………………………………………………………………………
……………………………………………………………………………………
Occupation:…………………………………………………………………………………

Tel.:Residence………………………………..Office……………………………………..

Date of Birth…………………………………Annual Income……………………………

Family Particulars………………………………………………………………………….

Name of spouse……………………………… ………………………..Age………………

No. of Children……………………………………………………………………………

1.Which Birla Sun Life Scheme do you have?

Health 

Retirement 

Life 

Health 

Retirement 

Life 

2. Are you satisfied with the Insurance plan you have?

(a) Yes  (b) No 

3. Are you satisfied with the services provided by the company regarding new plans and
schemes?
(a) Yes  (b) No 

4. Are you interested to make more investments in Birla Sun Life ?

(a) Yes  (b) No 

5. Have you any other Insurance Plan apart from Birla Sun Life?

(a) Yes  (b) No 

6. If yes, then of which Life Insurance Company?

(a) LIC  (b) Bajaj Allianz 

(c) Birla Sunlife  (d) Reliance 

(e) Others 

7. If you get any attractive plan than are you ready to switch over?

(a) Yes  (b) No 

8. If you get any attractive plan than are you ready to switch over?

(a) Yes  (b) No 

Suggestions:

……………………………………………………………………………

……………………………………………………………………………

……………………………………………………………………………

……………………………………………………………………………