A

SUMMER INTERNSHIP PROGRAMME REPORT

ON
“A Study on Perception of Insurance customers towards life insurance with
Special reference to birla sun life”
Submitted to

(L.J INSTITUDE OF COMPUTER APPLICATION -730)

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
To
Gujarat Technological University
UNDER THE GUIDANCE OF

Faculty Guide Company Guide

Name: MR.KUMAR RAMCHANDANI Name: MISS VAISHALI BAIJAL
Designation: ASSISTANT PROFESSIOR Designation: BUSINESS
DEVELOPMENT
MANAGER

Submitted by:

YAMINI SHAH (Enrollment No.:167300592052)

PRACHI JOSHI (Enrollment No.:167300592020)

BATCH: 2016-2018

August,2017
 DECLARATION

YAMINI SHAH (Enrollment No: 167300592052) & PRACHI JOSHI (Enrollment No:
167300592020) hereby declare that the report for Summer Internship Programme. I, the
undersigned, hereby declare that the Project Report entitled “A Study on Perception of
Customers towards Life Insurance with special reference to Birla Sun Life.” Is
written and submitted by me to University of Ahmadabad, Ahmadabad in the partial
fulfilment of the requirement for the award of degree of Master of Marketing Management
under the Guidance of Prof. Kumar Ramchadani. This is my original work and the
conclusions drawn therein are based on the material collected by myself.

Place: Ahmadabad Name of the student

Date: / / YAMINI SHAH
PRACHI JOSHI
 CERTIFICATE

This is to certify that project titled A Study on Perception of Customers

towards Life Insurance with special reference to Birla Sun Life is a bonfire
work carried out by Miss. Yamini shah (167300592052) & Miss. Prachi joshi
(167300592020), 2nd year MBA student of L.J institute of studies. Who carried
out the research under my supervision. I also certified further, that to the best
of my knowledge the work reported here In does not form part of any other
project report or dissertation on the basis of with a degree award was
conferred on an earlier occasion on this or any other candidate.

Name of Faculty Guide: KUMAR RAMCHADANI

Designation of Faculty Guide: ASSISTANT PROFESSIOR

 ACKNOWLEDGEMENT

A summer internship project is the golden opportunity for the learning and self
development. I want to thank BIRLA SUNLIFE INSURANCE CO LTD for providing me a chance
to conduct my internship in such an esteemed enterprise.
I wish to express my gratitude and special thanks to MR. JITENDRA BAPNA, head of training
department and MR. DEEPAK PANCHAL, manager and MISS VAISHALI BAIJAL, Business
development manager .who in spite of being extraordinary busy with his duties took out
guide me and allow me to carried out to my project work at such esteemed organisation. I
would also like to thank other staff members of supporting me and guiding me throughout
my project.
I would like to acknowledge L.J INSTITUTE OF COMPUTER APPLICATION and all my
family members & friends for their help and support. Lastly, I convey my gratitude to all
those who or directly or indirectly related to this project and helped me to complete this
project report.

Place: AHMEDABAD
Name of student: YAMINI SHAH, PRACHI JOSHI
Date:
Table of contact
CHAPTER PARTICULARS PAGE
NO. NO.
* Executive Summary 6
1 Introduction 7
1.1Introduction of the project 8
1.2 Needs of the study 8
1.3 process 9
1.4 literature review 10
1.5Objectives of the research 11
1.6Scope of the Project 11
1.7Limitations of the Project 12
2 Profile of the organisation 12
2.1Company Name and history 13
2.2 Company’s Philosophy 14
2.2Higher committee of Birla Sun Life& key people of 15-18
organization Investment committee, Management Team&
competitors
2.3 competitors in details 19
2.4 SWOT analysis of Birla sun life 20,21,
2.5Products by Birla Sun Life 22
2.6Awards and recognition 24
3 Conceptual Back Ground 25
4 Research Design and methodology 39
4.1Sampling design 40
4.2Source and method of data collection 40
4.3Methods of data analysis 41
5 Data Presentation, Analysis and Interpretation 43-54
6 Findings and Suggestions 55
6.1Main findings 56
6.2Suggestions 57
7 Conclusion 58
* Annexure 59
EXECUTIVE SUMMARY
In today’s world, every individual wants to secure his future and one of the ways is
investment. While investing their money they expect capital appreciation along with
security and minimum risk involved in it.

Some investment revenues involve huge risk and some less risk. Depending on the changing
risk environment and emerging investment opportunities, investments need to be evaluated
on a regular basis and form strategies which will help in minimizing the risk and maximizing
the returns to the investor.

For a vast country like India, There are two aspects which are most important for a
company’s progress. First is the customer & second is the way in which company reaches
the customer. Company may make the best products but it’s useless if it doesn’t have the
capacity to distribute it to the customers.

In this project, I am studying about the Perception of Customer towards Life Insurance with
special reference to Birla Sun Life. I have taken surveys to see what motivates to sell Life
Insurance Products & what a customer looks for before buying a Life Insurance Policy.
 .1.
INTRODUCTION
Introduction:
The project titled “A study on perception of customer towards Life Insurance & Birla
Sun Life Insurance in Ahmadabad” is done as a partial fulfilment of MBA curriculum and also
for the company perspective.

The project explains why a person buys Life Insurance Policy.

During my project duration, I had done the following:

As per the market study it has been observed that markets are doing extremely well in
service sector. After the analyzing of customer perception insurance found that the Indian
financial market is having lots of potential customer. There are many people who are not
insured and in near future people will realize the need of having an insurance policy. Only
4% of people have adequate money for their retirement & so there is a big market in this
sector.

Need of the study

Birla Sun Life Insurance Company Ltd is a Birla Sun Life Insurance Company Limited
(BSLI) is a joint venture between the Aditya Birla Group and Sun Life Financial Inc., a leading
international financial services organization. The local knowledge of the Aditya Birla Group
combined with the expertise of Sun Life Financial Inc., offers a formidable value proposition
to customers.

The vision of Birla Sun Life is “To be a leader and role model in a broad based and integrated
financial services business.”

To achieve this vision, the company has to understand what Insurance Customer think about
itself and accordingly make necessary changes to make the whole experience of connecting
with Birla Sun Life a good one for the insurance Customers.
Process
1. Identifying Customer Expectations
Because customer expectations are an ever-evolving process, it can be very challenging to
know precisely what those expectations might be. The best course of action is to take the
question directly to your customer base through a variety of customer service research
techniques.
Have customers complete surveys about your products and service. Provide incentive for
them to complete that survey, such as entry into a drawing for an enticing prize. Next time
you see a customer, ask if his expectations of your business are being met. If not, find out
why and what you can do to make your service better.

2. Common Expectations to Consider

Some of the most common and basic expectations customers have for most businesses
include:
• Fast, efficient and accurate service
• High quality products at a competitive price
• Friendly, helpful service staff to provide information and answer questions
• Prompt responses to their inquiries, whether online, by phone or in person
• Sufficient stock to meet their needs without long waits
• A trained staff that can handle their questions without referring them on
• A clean facility or easy to navigate website
All of these expectations comprise the minimum of what your top-notch service should look
like. Additional expectations may arise from your customer research, which you can address
on an individual basis.

3. Benefits of Meeting Expectations

When you are able to accurately identify and adequately meet your customers' expectations,
your customer service reputation will automatically be enhanced.
Some of the benefits of meeting your customers' expectations include:
• Customers that transform from first-time visitors to loyal clients.
• Increased sales as customers feel more comfortable doing business with you.
• More referrals from satisfied customers who bring in additional business by word of mouth
Literature review:
This chapter presents the review of literature relating to the study undertaken. A brief review
of literature would be of immense help to the researcher in gaining an insight into the selected
problem. It would help in gaining good knowledge of the area under study. This study is the
first of its category in the way as it attempts to compile the views given by expert
commissions, research bodies and individual researchers with reference to private life
insurance, people perception of life insurance, awareness and LIC. The reviews presented
below are based on internet search, perusal of related literature available in libraries and from
various publications of books, newspapers, journals, magazines and research studies made on
this topic. TO LIFE INSURANCE POLICY HOLDERS AWARENESS Chaudhary (2012)
explained that today India is one of the fastest growing economies of the world. The
Insurance Industry contributes to the financial sector of an economy and also provides social
security to the people of a country. The income earning capacity and increasing rate of
literacy are the key factors of the growth of the Insurance industry. This sector provides for
the long term contractual savings and security. The investors in life insurance are looking for
both good return and life risk coverage. This study is conducted in to check the perception of
insurance buyers/ consumers towards life insurance. To achieve these objectives, a
questionnaire is designed to collect the data.
Choudhuri (2014) analyzed that the customers are very much conscious about their needs and
requirements towards insurance. Based on the several factors, customers are now selecting
different kinds of products in their life where their awareness about the several existing life
insurance products varies situation wise, culture wise, nation wise, sector wise, industry wise
and obviously over times. On the other hand, like any other company, Life Insurance
Corporation of India (LICI) is adopting various strategies to develop customers’ awareness
about the various products as well as
Involving in the fulfillment of various needs and requirements of the customers through their
selection of different life insurance policies available in the market.
Dhanabhakyam and Anitha (2011) explained that the insurance sector, along with other
elements of marketing, as well as financial infrastructure have been touched and influenced
by the process of liberalization and globalization in India. The customer is the king in the
market. Life insurance companies deal in intangible products. With the entry of private
players, the competition is becoming intense. In order to satisfy the customers, every
company is trying to implement new creations and innovative product characteristics to
attract customers. Keeping this in mind, the present study is designed to analyze the
innovation in Life insurance sector in India.
Sreenivas and Anand (2012) found in the Indian context that the insurance habits among the
general public during the independence decade was rare but there was a remarkable
improvement in the Indian insurance industry soon after the economic reform era due to
healthy competition from many national as well as international private insurance players. In
this study attempt has been made to analyze the investors’ perceptions towards public and
private life insurance companies in India with special reference to Karnataka. Tiwari and
Yadav (2013) determined that the deregulation of the Indian Insurance market, low insurance
market penetration and the anticipated potential of the Indian insurance industry make it an
attractive opportunity for private entrants. With the progress of IRDA reforms and enactment
of IRDA act 1999, liberalization of the insurance market in India gave entry to many private
insurers, resulting in drastic changes in respect to people’s choice of companies. With the
expansion of the market, insurance penetration and density of the country have been
improves, leading to a competition within the companies in terms of policies sold, collection
of premium income, first premium income, market share, settlement of claims and others. In
India life insurance is regarded as more

Than a mere risk cover and is considered an important avenue of investment. Indian investors
therefore, evaluate the past track record and risk potential of an Insurer before taking a policy
investment decision. In this study an attempt has been made to analyze the investors’ risk
perceptions towards public and private life insurance companies in India.

OBJECTIVES OF THE STUDY:

1. To study what motivates an Insurance Advisor to join Insurance.
2. To give training to new advisors about Life Insurance & Birla Sun Life Plans
3. To study the motive behind people buying life insurance.
4. Customer Perception towards Life Insurance
5. Customer Perception towards Birla Sun Life Insurance.
Scope of the study:
In this Project, the main focus of was on 1 thing:

o Why customer buy Life Insurance Policy:

We all have dreams for our lives – the dream house, the luxury car, the
holiday abroad and many more. In order to achieve these dreams, it is important to
have a financial goal in mind and work towards achieving it. With Birla Sun Life
Insurance Wealth with Protection Solutions, your dream is secure. Besides providing
you a life cover, these solutions encourage you to save regularly, by offering flexible
plans suited to your goals. A person buys life Insurance according to his need. The
study analyzes the facts about why a person buys Life Insurance Product.

LIMITATIONS OF THE STUDY

 It was difficult to find respondent as they were busy & collection of data was
difficult. Therefore, the study is carried out based on the availability of the
respondents.
 Some people were hesitant to opt for insurance policy from Birla Sun Life as they
were keener towards insurance policies offered by LIC of India. Some respondent’s
behaviour and attitude was not satisfactory.
 Most of the customer data is been taken through customer coming in the branch,
which may give biased results towards Birla Sun ife. L
 2.
PROFILE OF
THE ORGANISATION
COMPANY NAME AND HISTORY
COMPANY PROFILE

Birla Sun Life Insurance Company Limited (BSLI) was established in 2000 as a joint
venture between the Aditya Birla Group, a well known and trusted name globally amongst
Indian conglomerates and Sun Life Financial Inc, leading international financial services
organization from Canada.

With an experience of over 17 years, BSLI has significantly contributed to the growth
and development of life insurance industry in India. BSLI currently ranks amongst top 7
private life insurance companies in the country. Known for its innovation and industry
benchmarks, BSLI has several firsts to its credit. BSLI 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. In addition to this BSLI also pioneered the launch of Unit Linked
Life Insurance plans amongst the private players in India. To establish creditability and
transparency, BSLI enjoys the prestige to be the originator of practice to disclose portfolio
on monthly basis. These development benefits have helped BSLI be closer to its policy
holders’ expectations which gets further accentuated by the compete bouquet of insurance
products (viz. pure term plan, life stage products, health plan and retirement plans) that the
company offers.

In addition to this, the extensive reach through its network of 600 branches and 1,
75,000 empanelled advisors. The 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 customers have an impeccable experience, BSLI ensured
lowest outstanding claims ratio of 0.00% for FY 2008-09. BSLI also has the best Turn Around
Time according to LOMA on all claim Parameters. Such services are well supported by sound
financials that BSLI has. The AUM of BSLI stood at Rs. 8165 crores as on February 28, 2009,
while as on March 31, 2009, the company has a robust capital base of Rs. 2000 crores.
Philosophy
Birla Sun Life Asset Management Company follows a long-term, fundamental research
based approach to investment. The approach is to identify companies, which have excellent
growth prospects and strong fundamentals. The fundamentals include the quality of the
company’s management, sustainability of its business model and its competitive position,
amongst other factors.

Vision:

To be a leader and role model in a broad based and integrated financial services business.

Mission:
To consistently pursue investor's wealth optimization by:

Achieving superior and consistent investment results.

Providing customer delight.

Institutionalizing system-approach in all aspects of functioning.

Upholding highest standards of ethical values at all times.

Values

Integrity

Commitment

Passion

Seamlessness

Speed
Communication
HIGHER COMMITTEE OF BIRLA SUNLIFE

Mr. Donald joined Sun Life Financial in 1969 in London, England, and qualified as a Fellow of
the Institute of Actuaries in 1972. In 1974, he left the company to pursue a career in
benefits counselling, ultimately joining William M. Mercer in Toronto.
Mr. Stewart rejoined Sun Life Financial in 1980 with overall responsibility for the Canadian
pension division, where he led six years of rapid growth. From 1992- 1995, Mr. Stewart
restored profitability via re-structuring and re-engineering as Chief Executive Officer of Sun
Life Financials trust operations. In May 1995, Mr. Stewart was appointed Senior Vice-
President and Chief Actuary followed by his appointment as President and Chief Operating
Officer followed in 1996.In April 1998;

Mr. Kumar Mangalam Birla

Mr. Birla is a Chartered Accountant and has also earned an MBA from London Business
School, London. He is also a Chairman of Aditya Birla Group, which is among India’s largest
business houses. Its JV operations include Birla Sun Life Asset Management Company, Birla
Life Distribution Co. Ltd and Birla Sun Life Insurance Co. Limited. Business World ranked him
among the top 10 of India’s most admired and respected CEOs and the top CEO of coming
millennium.
He is also on the Board of various companies.
Key peoples of organization
 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

 Investment Committee
 Mr. B. N. Puranmalka

 Mr. Eugene Lundrigan

 Mr. Ajay Srinivasan

 Mr. Vikram Mehmi

 Mr. Mayank Bathwal

 Mr. Vikram Kotak

 Ms. Keerti Gupta

 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 Force1

 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

 Mr. Rajesh Bhojani

 Senior Vice President - DSF Expansion

 Mr. K.H. Venkatachalam

 Vice President – Human Resource

 Mr. Fabien Jeudy

 Vice President, Chief & Appointed Actuary

 Mr. Lalit Vermani

 Vice President - Compliance

 Mr. Melvyn D'souza

 Vice President – Risk Management and Internal Audit

 Mr. Vikram Kotak

 Vice President - Investments

 Mr. Bhalachandra Nayak

 Vice President – Strategy

 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

Competitors in Detail
Aviva life insurance:
A v i v a L i f e I n s u r a n c e C o m p a n y I n d i a P v t . L t d . i s a j o i n t v e n t u r e 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 across50 countries, and a heritage of over 150 years.

Kotak Mahindra Old Mutual Life Insurance Ltd:

I s a j o i n t v e n t u r e b e t w e e n K o t a k 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 1/9/1956.1

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 AMPSanmar 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 A m e r i c a n I n t e r n a t i o n a l
G r o u p , I n c . ( A I G ) . T a t a G r o u p i s o n e o f t h e o l d e s t a n d l e a d i n g 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. T h e
Late Sir Dorab Tata was the founder Chairman of New India Assurance
C o . L t d . , G r o u p C o m p a n y incorporated way back in 1919.

Shriram Life Insurance Company

L t d i s a j o i n t v e n t u r e b e t w e e n t h e C h e n n a i - b a s e d Shriram Group and the
South African insurance major Sanlam. The company launched its operation in
India in December 2005

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.
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.

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

 Though 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.

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.
PRODUCTS BY BIRLA SUN LIFE
There are many products and solutions offered by BSLI such as Individual Solutions, Group
Solutions, Rural Solutions and NRI Solutions. I have done my research on Individual Solutions
some of which are as follows.
 Wealth with protection Solutions

Everyone has dreams for their lives- the dream house, the luxury car, the
holiday abroad and many more. In order to achieve these dreams, it is important to
have a financial goal in mind and work towards achieving it.

Birla Sun Life Insurance Wealth with Protection not only provides life cover but also
encourages people to save regularly, by offering flexible plans to suit every
individual’s needs. There are three plans under this category-

1. BSLI Dream Endowment Plan

2. BSLI Classic Endowment Plan
3. BSLI Platinum Advantage Plan
 Protection Solutions

People spend their working life striving to fulfil the big dreams for their families.
However, in an increasingly uncertain world, everyone needs to ensure that their
family is free from any financial burden in case of any unfortunate events. This is
where life insurance comes in, as one’s assurance of full financial security for their
family. Birla Sun Life Insurance Protection Solutions helps to meet the need for
financial security for one’s loved ones. The plans are designed to give an individual a
life cover as per their need at a reasonable premium. Some of the protection solution
plans are as follows

1. BSLI Term Plan

2. BSLI Premium Back Term
3. BSLI High Net Worth Term Plan
4. BSLI Money plus plan
5. BSLI vision life income plan
 Children’s Future Solution

A child is a source of joy for every parent. Everyone works towards ensuring
that they have the means to meet the big future expenses of your child, be it for
higher education, marriage or any other dreams that you have for your child.
Birla Sun Life Insurance Children’s Future Solutions are designed to help one build a
corpus that allows him to meet the major expenses of your child in future. Besides
providing life cover to ensure that child’s dream is also secured. BSLI Bachat Child
Plan is one of the best plans for children.

Plans are as follows:

1. BSLI Vision star plan
 Health and Wellness Solutions

With medical costs increasing considerably, many people find themselves

unprepared for sudden medical emergencies. Birla Sun Life Insurance Health &
Wellness Solutions ensures that an individual never lack the funds to go in for quality
treatment in case of medical emergencies. The plan helps to insure oneself and his
family for an adequate sum, against major illnesses and injuries. BSLI also provides
plans that offer the cashless facility. Some of the health and wellness solution plans
are as follows:

1. BSLI Universal Health

2. BSLI Health Plan
 Retirement Solutions

During retirement, income stops but the expenses don’t. With inflation increasing
the cost of basic essentials, savings today might not suffice meeting the cost of
necessities throughout the retired life. It is therefore important to start saving early
and in a planned manner for a comfortable, stress-free retired life. What is also
important is to determine the goal for the retirement corpus basis your projected
needs during retired life. Birla Sun Life Insurance Retirement Solutions ensure that
an individual enjoy a secure and happy retired life. Retirement plans will help to
build a corpus that lasts throughout the retired life.
AWARDS & RECOGNITION
o Birla Sun Life Insurance have won ‘Good Corporate Citizen Award’ for 2009-10

o ICAI Awards for Excellence in Financial Reporting, Awarded a Silver Shield in the
Insurance category by the Institute of Chartered Accountants of India (ICAI) for the
financial year ended 31st March, 2009.

o Recruiting and Staffing Best in Class Awards.

o Outlook Money Awards 2004 BSLI - Best Life Insurer (Runner Up) 2004 TROPHY.
o Outlook Money Awards 2004 BSLI - Best Life Insurer (Runner Up) 2004 CERTIFICATE.
o The 8th Asia Insurance Industry Awards 2004 - Birla Sun Life Insurance was among
the top five nominees in the category.
o The Indo-Canadian Business Chamber- BSLI awarded for its 'Successful Performance'
for 4 years April 2005.
o Birla Sun Life Insurance was presented 'The Hewitt Best Employers In India Awards
2004' Trophy.
o Birla Sun Life Insurance was awarded 'The Great Place to Work Seminar Series 2007’
Presented by Anil Sachdev (Chairman & MD of Grow Talent Company Ltd) Robert
Levering (Co-founder Great Place to Work Institute) and Jehangir Pocha (Business
World Magazine).
o The Bhartiya Shiromani Puraskar awarded to BSLI at the seminar on "Economic
Development” New Delhi, on February 13, 2006. This is a Certificate of Excellence for
Enhancing the image of India presented by Dr. Bhishma Narain Singh (Former
Governor of Tamil Nadu & Assam) in association with the "Institute of Economic
Studies (IES)".
o Hewitt Best Employers in India 2004.
o Sponsorship Acknowledgement for - The Asia Insurance Review.
o Golden peacock award in 2011.
o Best insurance integrated ad campaign award in 2011.
 .3.
Conceptual Background
Insurance

Today insurance is a tool for investing money that provides an assurance of security
with attractive returns. Insurance is a risk transfer tool. Insurance means “it covers all
uncertain risk of financial assets” .as we know that assets have some economic value. Same
that concept is followed on the human being. Insurance protect the economic value of all
financial assets.

Life Insurance
Life insurance is also an attractive financial instrument for the security purpose and sharing
of the uncertain risk. Life insurance may be the other form of saving investment with safety
returns. Like as the following ways:-
 Saving through life insurance guarantee financial protection against risk of death of
policy holder.

 Liquidity means providing loan and conversion of cash easily. When you need money
it will provide in proper way.

 Tax rebate is also another form for saving.

 Providing the full sum assured when any loss of the financial assets.

 Long term savings can be made in a relatively painless manner because of the easy
installment facility.

 Providing all the basic benefits which are coming under the life insurance plans.
BASIC OF INSURANCE:
 Sum Assured (S.A.) – It represents the face value or the insurance contract.

 Premium- It is one of the periodic payments that a policyholder pays for their
benefits through the policy.

 Term- It is the period during which the contract is effective between the insurers and
insured.

 Mode- It is the mode of payment of premium which may be Monthly, Quarterly, Half
Yearly and Yearly.

 Premium paying term (PPT)- It is the number of years, premium payable under the
policy. Under certain plans the PPT is less than the actual term of the policy.

 Grace Period- Policyholder are expected to pay premium on due date but for their
convenience a period of 15- 30 days is allowed as graces.

 Paid –up-value- According to rules & regulation, once the premium has been paid on
three policy year the policy does not become wholly void even if no subsequent
premium are paid. Such policies are known as paid-up policies.

 Surrender Value- A policy can be surrendered for cash after the policy has acquired
the paid-up value.

 Accident Benefit- It provides payment of an additional benefit equal to the sum

assured investment in case of the death due to accident or investment in case of
permanent disability.

 Term rider- Riders are provided with additional benefits on payment of a little extra
premium. This is an optional benefit.

 Death Benefit

 Maturity Benefit

 Switching option
There are various kinds of insurance plans. Some life insurance plans are as follows.
A) TERM INSURANCE PLAN

B) WHOLE LIFE INSURANCE PLAN

C) ENDOWMENT INSURANCE PLAN

D) PENSION PLAN

E) UNIT LINK INSURANCE PLAN

An Amount of up to Rs. 1 lakh gets deduction in Income Tax which makes these plans more
lucrative then other investment option & when you get approximately same returns. If the
client is in the highest tax bracket, then the customer can save up to Rs. 33000 by avoiding
paying tax

Concept of ULIP:
Unit Linked Insurance Plans are plans which have the combination of Insurance &
Investment. The Customer paying premiums is divided into 2 parts, one goes for Insurance
& the other is invested in the market.

The Fund Manager invests the Investment Fund into different securities depending on the
risk profile of the customer. The Fund is invested in the following categories:
 Equity

 Debt

 Mutual Fund

Both the advisor & the customer should know where the money is invested. A brief training
on the above parameters was given to the advisor. An advisor would be more confident
about the fund if he himself knows the funds & the composition.
A Portfolio Management consists of the following:
Equity Shares:
The market in which shares are issued and traded, either through exchanges or over-
the-counter markets are known as the stock market, it is one of the most vital areas of a
market economy because it gives companies access to capital and investors a slice of
ownership in a company with the potential to realize gains based on its future performance.

Differences between Primary Market and Secondary Market:-

PRIMARY MARKET SECONDARY MARKET

1. Market for new securities. 1. Market for existing securities.

2. No fixed geographical location. 2. Located at a fixed place.

3. Results in raising fresh resources for the 3. Facilitates transfer of securities from
corporate sector. one corporate investor to another.

4. Securities only listed companies can be

4. All companies can enter in primary market.
traded at Stock exchanges.

5. No tangible form or administrative set-up. 5. Have a definite administrative set-up

Recognized only the services it renders. and a tangible form.

6. Subjected to outside control by SEBI Stock 6. Subjected to control both from within
exchanges and Companies Act. and outside.
DEBT MARKET:

Debt market refers to the financial market where investors buy and sell debt
securities, mostly in the form of bonds. These markets are important source of funds,
especially in a developing economy like India. India debt market is one of the largest in Asia.
Like all other countries, debt market in India is also considered a useful substitute to
banking channels for finance.

The most distinguishing feature of the debt instruments of Indian debt market is that
the return is fixed. This means, returns are almost risk-free. This fixed return on the bond is
often termed as the 'coupon rate' or the 'interest rate'. Therefore, the buyer (of bond) is
giving the seller a loan at a fixed interest rate, which equals to the coupon rate.

Classification of Indian Debt Market

Government Securities Market (G-Sec Market):

It consists of central and state government securities. It means that, loans are being
taken by the central and state government. It is also the most dominant category in the
India debt market.

Bond Market:

It consists of Financial Institutions bonds, corporate bonds and debentures and

Public Sector Units bonds. These bonds are issued to meet financial requirements at a fixed
cost and hence remove uncertainty in financial costs.
Debt Instruments

Government Securities
It is the Reserve Bank of India that issues Government Securities or G-Secs on behalf
of the Government of India. These securities have a maturity period of 1 to 30 years. G-Secs
offer fixed interest rate, where interests are payable semi-annually. For shorter term, there
are Treasury Bills or T-Bills, which are issued by the RBI for 91 days, 182 days and 364 days.

Corporate Bonds
These bonds come from PSUs and private corporations and are offered for an
extensive range of tenures up to 15 years. There are also some perpetual bonds. Comparing
to G-Secs, corporate bonds carry higher risks, which depend upon the corporation, the
industry where the corporation is currently operating, the current market conditions, and
the rating of the corporation. However, these bonds also give higher returns than the G-
Secs.

Certificate of Deposit
These are negotiable money market instruments. Certificate of Deposits (CDs), which
usually offer higher returns than Bank term deposits, are issued in demat form and also as a
Promissory Notes. There are several institutions that can issue CDs. Banks can offer CDs
which have maturity between 7 days and 1 year. CDs from financial institutions have
maturity between 1 and 3 years. There are some agencies like ICRA, FITCH, CARE, CRISIL etc.
that offer ratings of CDs. CDs are available in the denominations of Rs. 1 Lac and in multiple
of that.
Commercial Papers
There are short term securities with maturity of 7 to 365 days. CPs are issued by
corporate entities at a discount to face value.
MUTUAL FUNDS

A mutual fund is simply a financial intermediary that allows a group of investors to

pool their money together with a predetermined investment objective. The mutual fund will
have a fund manager who is responsible for investing the pooled money into specific
securities (usually stocks or bonds). When one invests in a mutual fund, he is buying shares
(or portions) of the mutual fund and becoming a shareholder of the fund. The income
earned through these investments and the capital appreciations realized are shared by its
unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the
most suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost.

Concept of Mutual Funds

A Mutual fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through
these investments and the capital appreciation realized is shared by its unit holders in
proportion to the number of units earned by them. Thus a mutual fund is the most suitable
investment for the common man as it offers an opportunity to invest in the diversified
professionally managed basket of securities at a relatively low cost. The flow chart bellow
describes broadly working of a mutual fund:
Funds from Birla Sun Life
Enhancer Fund
Asset Allocation
Equities, 26.1
0% NCD, 40.02%

Securitised
G-
Debt, 0.65%
Sec, 15.98%
MMI, 17.25%

NCD Securitised Debt MMI G- Sec Equities

Sectoral Allocation - Top 10

Banking 16.53%
Oil & Gas 14.84%
Capital Goods 12.08%
IT 9.08%
Pharma 7.85%
Power 6.80%
Financial Services 5.38%
FMCG 5.23%

Auto 4.76%
Metal 4.16%

39.50% 38.34%

22.16%

Less Than 2 Years 2 to 7 Years 7 Years & Above

 Enhancer Fund Portfolio:

Securities Holding (%)

Total Government Securities 15.98%

6.90%Government of India 2019 4.87

6.35%Government of India 2020 2.18
7.95%Government of India 2032 1.35
7.94%Government of India 2021 0.92
8.20%Government of India 2022 0.91
7.50%Government of India 2034 0.63
8.24%Government of India 2027 0.57
7.44%Government of India 2012 0.55
7.61%Government of India 2015 0.50
6.07%Government of India 2014 0.45
Other Government Securities 3.05
Corporate Debt Holding

Total Corporate Debt 40.02

10.75%Reliance Industries Ltd. 2018 1.12

10.25%Tech Mahindra Ltd. 2014 1.01
10.20%Tata Steel Ltd.2015 0.99
8.65%Rural Electrification Crop Ltd 2019 0.72
9.05%State Bank of India 2020 0.67
9.80%LIC Housing Finance Ltd. 2017 0.66
11.45%Reliance Industries Ltd. 2013 0.64
9.15%Mahindra & Mahindra Ltd. 2011 0.60
9.40%Tata Tea Ltd. 2010 0.59
8.55%Indian Railway Fincorp Ltd. 2019 0.57
Other Corporate Debt 32.45

Securtised Debt Holding

Total Securitised Debt 0.65

India Struct Asset Trust Xii Ptc A11 2015 0.41

Corporate Debt Trust 2008-09 SR 16 2010 0.25

MMI 17.25
Total Equity 26.1
Reliance Industries Ltd. 1.73
ICICI Bank Ltd. 1.48
Infosys Technologies Ltd. 1.43
Larsen & Toubro Ltd. 1.19
Oil & Natural Gas Corporation 0.99
State Bank of India 0.97
ITC Ltd. 0.92
Bharat Heavy Electrical Ltd. 0.9
NTPC Ltd. 0.89
HDFC Ltd. 0.79
Other Equity 14.79
Maximize Fund
Maximizer Fund
MMI
15%

Equity
85%

Sectoral Allocation - Top 10

Banking 19.84%
Oil & Gas 15.36%
Capital Goods 15.27%
IT 9.42%
Auto 7.62%
Pharma 7.58%
Metal 6.19%
FMCG 5.69%
Financial Services 5.01%
Telecom 4.47%

Equity Allocation % MKT CAP ( in Rs. Crores

0-5k
11% 5k-10k
5%
10k-20k
7%
20k-30k
> 50 K 8%
62%

30k-50k
7%
 Maximize Fund Portfolio:

Securities Holding (%)

Government Securities 0
Corporate Debt 0

Equity 90.89
Reliance Industries Ltd 7.78
Infosys Technologies Ltd 5.12
ICICI Bank Ltd 5.05
Larsen & Toubro Ltd 4.48
Sterlite Industries Ltd 3.92
ONGC 3.57
ITC Ltd 3.31
SBI 3.16
HDFC Bank Ltd 3.16
BHEL 2.91
Other Equity 48.43
Equity 84.9%

Banking 19.84%
Oil & Gas 15.36%
Capital Goods 15.27%
IT 9.42%
Auto 7.62%
Pharma 7.58%
Metal 6.19%
FMCG 5.69%
Financial Services 5.01%
Telecom 4.47%
MMI 9.11
 .4.
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY:
RESEARCH DESIGN:
Basically there are two of approaches Exploratory Descriptive researches.
Research Instrument: Survey Method
SAMPLING:
We can say that sampling is the collection of information about an entire population
through examining a part of it. This is the best way for getting information which going to
help me to analysis the product performance and current market position of the company.
TYPES OF SAMPLING:
1) Probability Sampling

2) Non- Probability Sampling

I have used non probability sampling. Under this I have chosen convenience sampling.
OBJECTIVES OF THE STUDY:
 To determine and analyze the market potential of the birlasunlife insurance company in
Ahmadabad city.

 To study the overall scenario currently prevailing in the market, namely the per capital
income, purchasing power, occupation, literacy rate, etc.

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

 To know more about company’s perception in consumer‘s mind.

DATA COLLECTION SOURCES:
While deciding about the method of data collection to be used for the study, there are only
two types of data –
PRIMARY DATA::
 Questionnaire(Structure Interview)

SECONDARY DATA:
 Internet (Google . com &Ask . com)

 Various journals reports, magazine etc was used.

 Interacting with the sales department heads of SMC.

 www.birlasunlifeinsurance.com.

There are two types of modes to collect the data.

1. Observation Method

2. Survey Method

As far as the data collection method is concerned, designing the data collection for Survey
method is applicable to the project. A survey can be conducted by PERSONAL INTERVIEW,
TELEPHONIC INTERVIEW, E-MAIL, and POST
Amongst the above, I had conducted Personal interview.

SAMPLE UNIVERSE &UNIT:

My sample is not restricted by any boundation. Sample population is residing in Ahmadabad
city,100 were those who have at least one insurance policy.
SAMPLE METHOD: The sampling method is convenience sampling.
SAMPLE SIZE: A total number of 100 people were interviewed.
METHODS OF DATA ANALYSIS:
There is one questionnaire:
1. Customers.
Every Questions of this questionnaire is analyzed separately for better understanding the
behaviour of the respondent.
 .5.
Data Presentation
Analysis
&
Interpretation
 5.1.
Customer Perception towards
Life Insurance
&
Birla Sun Life
Introduction:

These Survey forms are filled by those people who have taken at least one Life
Insurance so that we can get in-depth details about the actual feedback of the clients. Many
of the clients were given survey forms at Birla Sun Life. Ahmadabad.

1. Which company Insurance Plan do you have?

Life Insurance Policy %

LIC 42 47
Birla Sun life 10 11
SBI Life 5 5
ICICI Prudential 12 13
Tata AIG 4 4
Max New York 5 6
Reliance 5 6
HDFC Standard Life 6 7
Others 1 1

Life Insurance Policy

1% LIC
6%
6% 7% Birla Sunlife
4% SBI Life
47%
ICICI Prudential
13%
Tata AIG
5% Max New York
11%
Reliance
HDFC Standard Life
Others

INTERPRETATION:

Many respondents had taken more than 1 policy from different company. In
all I got 90 responses where LIC is leading followed by ICICI prudential & Birla Sun
Life.
2. Which Insurance Plan you have?

Type of Insurance Plan %

Traditional 25 28
EewULIP 33 37
Health 20 22
Term 12 13

Type of Insurance Plan

13%
28%

22% Traditional
ULIP
Health
Term
37%

INTERPRETATION:

Many respondents had taken more than 1 type of plan. In this also, I got 90
responses. In recent times with the popularity of ULIP’s, the traditional plans have
taken a back seat. Only 12 respondents out of 50 had pure term plan.
3. Why did you take this plan?

Reason for taking Policy %

Investment 25 25
Child Education 10 10
Child Marriage 5 5
Protection 11 11
Retirement 4 4
Tax-Benefit 45 45

Reason for taking Policy

25%
Investment
45%
Child Education
10% Child Marriage
Protection
5%
Retirement
4% 11%
Tax-Benefit

INTERPRETATION:

Every respondent was asked to tick 2 points, Surprising many respondents

were taking a Life Insurance not for protection but for tax-saving. People also
concentrated on Child Education & Marriage. Very less respondents had taken
Retirement/Pension plan.
4. From where have you taken the Insurance Policy?

Source of taking Insurance %

Advisor 40 80
Tele-caller 2 4
Bank 5 10
Online 2 4
Other 1 2

Source of taking Insurance

2%
4%
4% 10%

Advisor
Tele-caller
Bank

80% Online
Other

INTERPRETATION:

40 respondents had taken policy from Insurance advisor. Some Other sources were
Tele-caller, Bank, Online, Stalls.
5. Are you getting proper service from the Bank/Agent/Company?

Proper Services %
Yes 37 74
No 13 26

Proper Services

26%

Yes
74%

No

INTERPRETATION:

Only 37 respondents were getting good services from their respective seller, while
13 respondents feel that they were not getting proper service from their sellers.
 6. Are you aware about Birla Sun Life Insurance Company?

Know Birla Sun Life %

Yes 45 90
No 5 10

Know Birla Sunlife

10%

90%

Yes No

INTERPRETATION:

45 respondents knew about Birla Sun Life Insurance. This clearly states that most of
the people in the market know about Birla Sun Life in the market which is a positive
sign for the distribution team.
 7. From where do you know Birla Sun Life?

Source of knowledge about Birla Sun Life %

T.V Ads 4 9
Radio Ads 2 5
Newspaper/Magazine 7 16
Online 2 4
Advisor 23 51
Broking Firm 4 9
Bank 2 4
Relatives/Friends 1 2
Others 0 0

Source of knowledge about Birla Sunlife

0%

4% 2% T.V Ads
5%
9% Radio Ads
9%
Newspaper/Magazine
16%
Online
Advisor
51% Broking Firm
4%
Bank
Relatives/Friends
Others

INTERPRETATION:

Most of the respondents came to know about Birla SunLife from advisors proving
that the company advisors are active in the market. To add Birla has also made a
mark through other mediums like TV & Radio Ads, Newspaper, Magazines, & Online.
 8. Do you have any Insurance Policy from Birla Sun Life?

Birla Sun Life

Policy %
Yes 45 90
No 5 10

Birla Sunlife Policy

33%

67%

Yes No

INTERPRETATION:

Out of 45 respondents who knew about Birla Sun Life, 30 had taken a policy of Birla
Sun Life, While 15 respondents had not taken the policy.
 9. Are you going to buy any Insurance Plan in near future?

Buy Insurance Plan %

Yes 45 90
No 5 10

Buy Insurance Plan

30%

70%
Yes No

INTERPRETATION:

35 respondents were interested in taking Birla Sun Life Policy in future. While 15
respondents were not interested in taking any policy from Birla Sun Life
 10. What type of plan are you planning to take?

Plans to buy %
Investment 7 20
Child 10 29
Pension 2 6
Term 5 14
Health 11 31

Plans to buy

20%
31%

Investment
Child
Pension
29%
14% Term

6% Health

INTERPRETATION:

According to the feedback forms, Investor will be buying a child & Health plan in
near future. The company must create awareness about the Term & Pension plans.
 .6.
Findings
&
Suggestions
Customer Feedback Form
Findings:
 LIC is the market leader in Life Insurance with approx 50% market share followed by
ICICI Prudential, SBI Life & Birla Sun Life.

 People were hesitating to buy Private Company’s Insurance Policy.

 Investors are ready to take little risk (by buying ULIP) if the brand of the company is
good.

 In recent times with the popularity of ULIP’s, the traditional plans have taken a back
seat.

 People are not taking term plan which is the most basic form of Insurance.

 Surprising respondent was taking a Life Insurance not for protection but for tax-
saving followed by Investment & Child Education & Marriage.

Suggestions:
 Company should concentrate on making Birla SunLife a positive & secure brand.

 Company should create awareness about various Insurance Plans.

 Most of the customer buy Insurance policy from advisors

o Give training from time to time.

o Motivation Program

o Contest to motivate Advisor.

 Company should give timely intimation to Advisor & Customer Relating to Policy document,
Policy statements, New Programmes, plans & Contests.

 Company should make the diversified distribution by having tie-ups with Banks, Broking
Firms etc.
 .7.
Conclusion
Conclusion:
 Birla Sun Life have maintained very good brand image in the mind of the customers.
 Insurance Sector is booming, less than 4% of people have adequate money after
retirement.
 Birla Sun Life should advertise & spread awareness about Insurance, Retirement &
Child Plan which will help the distribution network also.
 Insurance business depends on the distribution. Birla Sun Life should invest in training
advisors & making the distribution system strong.
 Birla Sun Life should concentrate on giving better after sale service.
 Government should also initiate awareness about Insurance products.
 Birla Sun Life should concentrate on making its distribution network strong by
continues Motivation, Training & Regular Contests for its advisors.
 Company should make the diversified distribution by having tie-ups with Banks,
Broking Firms etc.

 Birla Sun Life should start selling policy online by reducing the charges levied on a
particular policy.
ANNEXURE
 Questionnaire:
Name: ________________________________________________ your age:___________
E-mail Id: ___________________________________

1. Which company Insurance Plan do you have?

O LIC O Birla sun life O SBI Life

O ICICI Prudential O Tata AIG O Max New York
O Reliance O HDFC Standard O Others____________

2. Which Insurance Plan you have? O Traditional O ULIP O Health O Term

3. Why did you take this plan?

O Investment O Tax benefit O Insurance

O Child Education O Child Marriage O Retirement

4. From where have you taken the Insurance Policy?

O Advisor O Tele caller / Corporate

O Bank O Online O Other___________

5. Are you getting proper service from the Bank/Agent/Company? O Yes O

No

6. Are you aware about Birla Sun Life Insurance Company? O Yes O
No

7. From where do you know Birla Sun Life?

O TV ad O Radio O Newspaper/ Magazine

O Online O Agent O Broking Firm O Bank
O Relatives/Friends O Other__________________

8. Do you have any Insurance Policy from Birla Sun Life? O Yes O No

9 .Are you going to buy any Insurance Plan in near future? O Yes O No

10. What type of plan are you planning to take?

O Investment O Child O Pension O Term O Health
Bibliography:
 www.birlasunlife.com
 www.bloomberg.com
 www.karvy.com
 www.indianfoline.com
 www.mcxindia.com
 www.ncdex.com
 Business today
 Business world
 Economics times