DOON BUSINESS SCHOOL

A
Project Report
On
“A comparative study on Birla Sun life insurance and Life Insurance
Corporation”
At
“The Leading Solutions Pvt Ltd”

Submitted To: Submitted By:

Dr. Ranjana Sharma Himanshu Narang
(Faculty of Management 0191mba065
At DBS) MBA (Finance) 2019-21

1
 Declaration

This is certified that I, Himanshu Narang the student of Department of management studies,
studying in MBA (2nd Semester), has undergone research project on title “A Comparative
study of LIC and Birla Sunlife Insurance” for the completion of degree of Master of
Business Administration in Doon Business School, Dehradun.

I solemnly declare that the work done by me is original and no copy of it has been submitted to
any other university for award of any other degree.

Himanshu Narang

0191mba065

MBA (Finance)

2
 Acknowledgement

I am very thankful to everyone who all supported me, for I have completed my project
effectively and moreover on time.

I express my warm thanks to Dr. Ranjana Sharma for helping me to gather information and
guiding me for doing this project. She has been very kind and patient, suggesting to me the
outline of this project and clears my doubts.

I am using this opportunity to express my gratitude that supported me throughout the course of
this MBA project. I am thankful for her aspiring guidance, invaluably constructive criticism
and friendly advice during the project work. I am sincerely grateful to her for sharing her
truthful and illuminating views on a number of issues related to the project.

3
 Table of contents

S.No. Content Page

No.
1 Declaration 2

2 Acknowledgement 3

3 INTRODUCTION 5-12

4 COMPANY PROFILE 13

4.1 Birla Sunlife Insurance 14-19

4.2 Life Insurance Corporation 19-23

4.3 Main Plans of BSLI 23-26

4.4 Main Plans of LIC 27-29

5 COMPARISON BETWEEN MAIN PRODUCT OF 30

BSLI AND LIC

6 RESEARCH METHODOLOGY 31

7 Data analysis and interpretation 32-37

8 Findings & Conclusion 38

9 Suggestions 39

10 Limitations 39

11 Bibliography 40
12 Annexure 41-42

4
 1. Introduction
The financial sector is a section of the economy made up of firms and institutions that
provide financial services to commercial and retail customers. This sector comprises a broad
range of industries including banks, investment companies, insurance companies, and real
estate firms.
A large portion of this sector generates revenue from mortgages and loans, which gain value
as interest rates drop. The health of the economy depends, in large part, to the strength of its
financial sector. The stronger it is, the healthier the economy. A weak financial sector
typically means the economy is weakening.
Why Invest in the Financial Sector?
Economists often tie the overall health of the economy with the health of the financial sector.
If financial companies are weak, this is a detriment to the average consumer. Financial
companies provide loans for businesses, mortgages to homeowners, and insurance to
consumers. If these activities are restricted, it stunts growth in both small business and real
estate.

Types of Financial Sectors

1) Share Market
2) Post Office Saving Deposit
3) Gold
4) Public Provident Fund
5) Banking Sector
6) Real Estate
7) Mutual Fund
8) Insurance

Insurance

Insurance is a contract between two parties whereby one party called insurer undertakes in
exchange for a fixed sum called premiums, to pay the other party called insured a fixed
amount of money on the happening of a certain event. Insurance is a protection against
financial loss arising on the happening of an unexpected event. Insurance companies collect
premiums to provide for this protection. A loss is paid out of the premiums collected from the
insuring public and the Insurance Companies act as trustees to the amount collected. For
Example, in a Life Policy, by paying a premium to the Insurer, the family of the insured
person receives a fixed compensation on the death of the insured. Similarly, in a car
insurance, in the event of the car meeting with an accident, the insured receives the
compensation to the extent of damage. It is a system by which the losses suffered by a few
are spread over many, exposed to similar risks.

5
Logic of insurance

It is a system by which the losses suffered by a few are spread over many, exposed to similar
risks. Insurance is a protection against financial loss arising on the happening of an
unexpected event. Insurance companies collect premiums to provide for this protection. A
loss is paid out of the amount premiums collected from the insuring public and the Insurance
Companies act as trustees to the collected.

Need of insurance

Insurance is desired to safeguard oneself and one's family against possible losses on account
of risks and perils. It provides financial compensation for the losses suffered due to the
happening of any unforeseen events. By taking life insurance a person can have peace of
mind and need not worry about the financial consequences in case of any untimely death.
Certain Insurance contracts are also made compulsory by legislation. For example, Motor
Vehicles Act 1988, stipulates that a person driving a vehicle in a public place should hold a
valid insurance policy covering “Act" risks. Another example of compulsory insurance
pertains the Environmental Protection Act, wherein a person using or to carrying hazardous
substances (as defined in the Act) must hold a valid public liability (Act) policy.

Insurance in India

Insurance is a federal subject in India and has a history dating back to 1818. Life and general
insurance in India is still a nascent sector with huge potential for various global players with
the life insurance premiums accounting to 2.5% of the country's GDP while general insurance
premiums to 0.65% of India's GDP. The Insurance sector in India has gone through a number
of phases and changes, particularly in the recent years when the Govt. of India in 1999
opened up the insurance sector by allowing private companies to solicit insurance and also
allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as a booming
market with every other global insurance company wanting to have a lion's share. Currently,
the largest life insurance company in India is still owned by the government.

The Confederation of Indian Industry states that the insurance sector of the country has been
witnessing a consistent growth rate of late and its present worth is 41 billion US dollars.

The industry has of late achieved a yearly growth rate within 32 and 34 percent and this
makes it the 5th best among emerging economies around the world. The various entities of the
industry are also bringing out newer products on a regular basis to attract their customers.

As per rules, the upper limit of foreign direct investment permitted in this sector is 26
percent. However, this has to be done through the automatic route and the investor needs a
license from Insurance Regulatory and Development Authority (IRDA).

At present there are 22 life insurers in India. The IRDA has recently taken away the tariffs of
the interest rates and this has provided insurers greater independence when it comes to
deciding the price of their insurance policies. The insurance industry has also become more
competitive as a result.

Yet another important factor affecting this sector has been the recent financial meltdown.

6
India insurance industry growth in last few years
The life insurance companies have performed the best when it comes to growth with an
increase of almost 70% in new premium that has been collected in the initial 5 months of
2012.

As per IRDA data, in April-August 2010 the insurance companies earned $11.73 billion in
new premium - in the corresponding period in the previous year the amount stood at 6.9
billion dollars.

LIC, a state held insurer, had been the biggest profit maker at that time with an addition of
88% to their existing business. The privately owned insurers together had seen a leap of 34%
to their policy sales.

ICICI Prudential earned 576.60 million dollars at that time. During April-August 2009 SBI
Life had earned $379.20 million in sales of new policies and that figure went up to $531.87
million in the corresponding period in 2010 making it an increase of 40%. HDFC Standard
Life also experienced a good growth of 54% in new sales.

IRDA data shows that between April and October 2010 the general insurance industry
experienced a year-on-year growth of 22.76% with regards to underwritten gross premium.

The total value of that premium was 5.29 billion dollars while the same figure stood at $4.31
billion in April-October 2009. For the public sector companies the year-on-year growth rate
was 21.09 percent between April-October 2010 and April-October 2009.

In the same period the privately held insurers saw an increase of 25.19 percent in terms of
premium collected. Among the publicly owned entities, New India Insurance was one of the
better performers with a premium income of 916.77 million dollars in April-October 2010.

At the same period in 2009 they had earned 770.25 million dollars which implies a growth
rate of 19.04%. The IRDA Summary Report of Motor Data of Public and Private Sector
Insurers 2009-10 states that in the same period almost 28.4 million policies were sold and the
aggregate worth of premium collected was $2.31 billion.

The health insurance sector, according to the RNCOS' research report named "Booming
Health Insurance in India" posted unprecedented growth rates in 2008-09 and 2009-10. The
report also estimates that between the 2009-10 and 2013-14 the sector would see a compound
annual growth rate (CAGR) of at least 25%.

History of Insurance in India

Insurance in India has its history dating back till 1818, when Oriental Life Insurance
Company was started by Europeans in Kolkata to cater to the needs of European community.
Pre-independent era in India saw discrimination among the life of foreigners and Indians with
higher premiums being charged for the latter. It was only in the year 1870, Bombay Mutual
Life Assurance Society, the first Indian insurance company covered Indian lives at normal
rates.

At the dawn of the twentieth century, insurance companies started mushrooming up. In the
year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed to

7
regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary
that the premium rate tables and periodical valuations of companies should be certified by an
actuary. However, the disparage still existed as discrimination between Indian and foreign
companies. The oldest existing insurance company in India is National Insurance Company
Ltd, which was founded in 1906 and is doing business even today. The Insurance industry
earlier consisted of only two state insurers: Life Insurers i.e. Life Insurance Corporation of
India (LIC) and General Insurers i.e. General Insurance Corporation of India (GIC). GIC had
four subsidiary companies.

With effect from December 2000, these subsidiaries have been de-linked from parent
company and made as independent insurance companies: Oriental Insurance Company
Limited, New India Assurance Company Limited, National Insurance Company Limited and
United India Insurance Company Limited.

Life Insurance Corporation Act, 1956

Even though the first legislation was enacted in 1938, it was only in 19 January 1956, that life
insurance in India was completely nationalized, through a Government ordinance; the Life
Insurance Corporation Act, 1956 effective from 1.9.1956 was enacted in the same year to,
inter-alia, form LIFE INSURANCE CORPORATION after nationalization of the 245
companies into one entity. There were 245 insurance companies of both Indian and foreign
origin in 1956. Nationalization was accomplished by the govt. acquisition of the management
of the companies. The Life Insurance Corporation of India was created on 1 September,
1956, as a result and has grown to be the largest insurance company in India as of 2006 .

General Insurance Business (Nationalization) Act, 1972

The General Insurance Business (Nationalization) Act, 1972 was enacted to nationalize the
100 odd general insurance companies and subsequently merging them into four companies.
All the companies were amalgamated into National Insurance, New India Assurance, Oriental
Insurance, and United India Insurance which were headquartered in each of the four
metropolitan cities.

Insurance Regulatory and Development Authority (IRDA) Act, 1999

Till 1999, there were not any private insurance companies in Indian insurance sector. The
Govt. of India then introduced the Insurance Regulatory and Development Authority Act in
1999, thereby de-regulating the insurance sector and allowing private companies into the
insurance. Further, foreign investment was also allowed and capped at 26% holding in the
Indian insurance companies. In recent years many private players entered in the Insurance
sector of India. Companies with equal strength started competing in the Indian insurance
market. Currently, in India only 2 million people (0.2 % of total population of 1 billion), are
covered under Medi claim, whereas in developed nations like USA about 75 % of the total
population are covered under some insurance scheme. With more and more private players in
the sector this scenario may change at a rapid pace

Different Insurance Companies

8
Insurance is an upcoming sector, in India the year 2000 was a landmark year for life
insurance industry, in this year the life insurance industry was liberalized after more than fifty
years. Insurance sector was once a monopoly, with LIC as the only company, a public sector
enterprise. But nowadays the market opened up and there are many private players competing
in the market. There are fifteen private life insurance companies has entered the industry.
After the entry of these private players, the market share of LIC has been considerably
reduced. In the last five years the private players is able to expand the market (growing at
30% per annum) and also has improved their market share to 18%. For the past five years
private players have launched many innovations in the industry in terms of products, market
channels and advertisement of products, agent training and customer services etc.

The various life insurers entered in India:-

1. Bajaj Allianz Life Insurance Company Limited

2. Birla Sun Life Insurance Co. Ltd

3. HDFC Standard life Insurance Co. Ltd

4. ICICI Prudential Life Insurance Co. Ltd.

5. ING Vysya Life Insurance Company Ltd.

6. Max New York Life Insurance Co. Ltd

7. Met Life India Insurance Company Ltd.

8. Kotak Mahindra Old Mutual Life Insurance Limited

9. SBI Life Insurance Co. Ltd

10. Tata AIG Life Insurance Company Limited

11. Reliance Life Insurance Company Limited.

12. Aviva Life Insurance Co. India Pvt. Ltd.

13. Sahara India Life Insurance Co, Ltd.

14. Shriram Life Insurance Co, Ltd.

15. Bharti AXA Life Insurance Company Ltd.

16. Future General Life Insurance Company Ltd.

17. IDBI Fortis Life Insurance Company Ltd.

18. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd

19. AEGON Religare Life Insurance Company Limited.

9
20. DLF Pramerica Life Insurance Co. Ltd.

21. Star Union Dai-ichi Life Insurance Comp. Ltd.

ADVANTAGES OF LIFE INSURANCE

i) Protection against risk of untimely death

Life insurance is a product, which offers protection against the risk of death the full
sum assured is made available under a life assurance policy, whereas under other savings
schemes, the total accumulated savings alone will be available.
ii) Protection during old age

Life insurance can also be used as a means of saving for one’s future. There are a
number of life insurance policies, which in addition to life cover also provide the means of
investing one’s income. The sum as per the policy will be received only after a period of
time. This amount thus provides for the old age.
iii) Forced savings

Payment of life insurance premiums is compulsory and becomes a habit. Savings in

other scheme can be easily withdrawn and may be used for less worthy purpose. Termination
of a life insurance policy by the policyholder usually results in substantial loss in benefits
under the policy to the policyholder. One is thus encouraged to save and keep one’s policy
alive.
iv) Educational requirements and charity

The object of insurance may be to serve as a security to educational funds in respect

of loans advanced for educational purpose or to provide donations to charitable institutions
like hospital and school.
v) Nomination and assignment

The life insured can name the person or persons to whom the policy money would be
payable in the event of his death .the proceeds of a life insurance policy can be protected
against the claims of the creditors of the life insured by effecting a valid assignment of the
policy. The beneficiaries are fully protected from creditors expect to the extent of any interest
in the policy retained by the insured.21Marketability and suitability for borrowing
After 3 years, if the policyholder finds that he is unable to continue payment of
premiums he can surrender a policy for a cash sum. A life insurance policy is accepted as a
security for a commercial loan.

vi) Loans from the insurance company

10
 A policy holder can take a loan from his insurance company against the Security of
his life insurance policy provided the terms of the terms of his policy allow such a loan. This
loan can be taken usually after a period of 3 years from commencement of the policy and is a
percentage of its surrender value.
vii) Investment options

The unit link products give comprehensive insurance solutions that cater to an
individual’s dual need of earning potentially high returns as well as stay for life. Thus there is
an option to invest money in the products that combine the best of insurance and investment.
In a volatile market conditions, it is possible to secure both as one can hedge the investment
with saver investment vehicles that provide a diversified portfolio.
viii) Tax benefits

The Indian income tax act provides tax concessions to the policyholder both on
payment of premium and on the maturity amount. Under sec 88 the tax benefits on premium
paid by an individual for life insurance policies on his own life\on the life of spouse \children
minor or major, including married daughters.
Under sec 6 of the married women’s property act if a married man takes a policy of
life insurance on his own life and expenses on the face of it to be for the benefit of his wife or
of his wife and children or any of them, then it shall be deemed to be a trust for the benefit of
his wife and children or any of them, According to the interest so expressed and shall not so
long as any object of trust remains be subject to the control of the husband or to his creditors
or form part of his estate. An insurance policy taken by a married man in the above manner is
ideal way to protect the interest of his wife and children, even after his untimely death.

Types of insurance products

Term assurance plan- In insurance language this is a “pure risk cover” and can be described
as an insurance or risk management product in its purest and simplest form. In case of your
untimely death, your dependents will receive the risk-cover amount or the ‘sum assured’. On
the other hand, there is no survival benefits if you survive the policy term, and you also do
not get back the premiums paid.

Endowment assurance plans- It is a traditional investment-cum-insurance plan. In other

words, it provides both life cover (in the event of death of life insured) or maturity benefits if
he/she survives the policy term. Endowment plans are typically front-loaded. Therefore it
makes sense for you to remain in the policy for at least 12-15 years.

Money-back policy- It is a variant of the endowment assurance policy-the difference is that

you get the survival benefits intermittently over the life of the policy. Thus taking care of his
lump-sum monetary requirements to enable him to meet his financial goals and major
commitments. The maturity benefit is the sum assured value less the survival benefits already
paid under the policy, plus bonuses accrued, if any. In case of untimely death the nominee
will receive the entire sum assured without considering the payouts already made to you
before the unfortunate death.

11
Whole life plan- This policy provides the life assurance cover for almost the entire life. Most
of the insurance companies provide protection up to the age of 100 years. The sum assured is
paid to you once you reach this age, and the policy is terminated. In this payment of premium
is for whole life, and the sum assured is paid to your nominee in the event of your death. In
other words, this is equivalent to a term plan over your lifetime.

Pension plan- A pension plan can be looked as more of an investment product offered by
insurers to cater to the “golden” retirement years of an individual. Also referred to as
retirement plans, these are designed to ensure that you are financially independent during
your retirement years. Most of the pension plans also provide an optional life assurance cover
in them.

Child plan- It basically aims at ensuring the achievement of life goals of your child. The goal
can be higher education, financial help in establishing a business or profession, or even
marriage. In a child plan, the life assured can be the parent or the child. The beneficiary for
the policy, however, is the child. As a child is a minor, the life insurance contract is between
the parent and the insurance company. In case of early death of the parent, the premium
payment is waived off by the insurance company and the policy continues as originally
planned.

Unit Linked Insurance Plan- ULIPs have been the darling of insurance companies,
intermediaries and the insured population alike over the last five years. The main reason for
this popularity is the twin advantage of a pure life cover (insurance component) and a range
of investment funds or options (savings component) to match your risk profile. While the
pure life cover provides the much needed financial security to your dependents in the event of
your untimely death, the savings component allows you to participate in the capital markets
and build wealth over the long-term tenure of the policy.

Changing face of Indian insurance industry

Indian life-insurance market is the target market of all the companies who either want to
extend or diversify their business. To tap the Indian market there has been tie-ups between
the major Indian companies with other International insurance companies to start up their
business. The government of India has set up rules that no foreign insurance company can
setup their business individually here and they have to tie up with an Indian company and this
foreign insurance company can have an investment of only 24% of the total start-up
investment. Indian insurance industry can be featured by:

 Low market penetration.

 Ever growing middle class component in population.
 Growth of customer’s interest with an increasing demand for better insurance
products.
 Application of information technology for business.
 Rebate from government in the form of tax incentives to be insured.

12
Today, the Indian life insurance industry has a dozen private players, each of which are
making strides in raising awareness levels, introducing innovative products and
increasing the penetration of life insurance in the vastly underinsured country. Several of
private insurers have introduced attractive products to meet the needs of their target
customers and in line with their business objectives

Indian Insurance Market

Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and 3rd largest
in terms of purchasing power parity. With factors like a stable 8-9 per cent annual growth,
rising foreign exchange reserves, a booming capital market and a rapidly expanding FDI
inflows, it is on the fulcrum of an ever increasing growth curve.

Insurance is one major sector which has been on a continuous growth curve since the revival
of Indian economy. Taking into account the huge population and growing per capita income
besides several other driving factors, a huge opportunity is in store for the insurance
companies in India. According to the latest research findings, nearly 80% of Indian
population is without life insurance cover while health insurance and non-life insurance
continues to be below international standards. And this part of the population is also
subjected to weak social security and pension systems with hardly any old age income
security. As per our findings, insurance in India is primarily used as a means to improve
personal finances and for income tax planning; Indians have a tendency to invest in properties
and gold followed by bank deposits. They selectively invest in shares also but the percentage
is very small 4-5%. This in itself is an indicator that growth potential for the insurance sector
is immense. It’s a business growing at the rate of 15-20% per annum and presently is of the
order of $47.9 billion.

India is a vast market for life insurance that is directly proportional to the growth in
premiums and an increase in life density. With the entry of private sector players backed by
foreign expertise, Indian insurance market has become more vibrant. Competition in this
market is increasing with company’s continuous effort to lure the customers with new
product offerings. However, the market share of private insurance companies remains very
low -- in the 10-15% range. Even to this day, Life Insurance Corporation (LIC) of India
dominates Indian insurance sector. The heavy hand of government still dominates the market,
with price controls, limits on ownership, and other restraints.

13
 2. Company Profile
A. Birla Sun Life Insurance
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., as leading
international financial services organization. The local knowledge of the Aditya Birla group
combined with the expertise of Sun Life Financial Inc., offer a formidable protection for your
future. The Aditya Birla group has a turnover of Rs. 1,33,875 corers (as on 31 st march 2008).
It has over 100,000 employees across all its units worldwide. It is led by its chairman – Mr.
Kumar Mangalam Birla. Some of its key companies are Hindalco, Grasim and Aditya Birla
Nuvo.
Sun Life Financial Inc. and its partners, have operations in key markets worldwide. These
include Canada, U.S, U.K, Hong Kong, the Philippines, Japan, Indonesia, India, china and
Bermuda. Sun Life Financial Inc. has assets under management of over us$ 404.7 BILLION
(as on 31st March, 2008). It is a leading performer in the life insurance market in Canada.

Birla Sun Life Insurance (BSLI) has been operating for 9 years. It has contributed
significantly to the growth and development of the life insurance industry in India. It
pioneered the launch of Unit Linked Life Insurance plans amongst the private players in
India. It was the first player in the industry to sell its policies through the 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 1500 towns and cities in
India. The company has a capital base of Rs. 1274.5 crores as on 31st March 2008.

Aditya Birla Sun Life Insurance Company Limited (ABSLI) is a subsidiary of Aditya Birla
Capital Ltd (ABCL). It is one of the leading private sector life insurance companies in India.
ABSLI was incorporated on August 4th, 2000 and commenced operations on January 17th,
2001. ABSLI is a 51:49 joint venture between the Aditya Birla Group and Sun Life Financial
Inc., a leading international financial services organization in Canada.

Formerly known as Birla Sun Life Insurance Company Limited, ABSLI is one of India’s
leading life insurance companies offering a range of products across the customer’s life cycle,
including children future plans, wealth protection plans, retirement and pension solutions,
health plans, traditional term plans and Unit Linked Insurance Plans (ULIPs).

As of December 31st, 2018, total AUM of ABSLI stood at Rs. 389,548 million. ABSLI
recorded a gross premium income of Rs. 18,599 million in Q3 FY 2018-19 and registering a

14
y-o-y growth of 68% in Individual First Year Premium and currently ranked 7th in Individual
Business (Individual FYP adjusted for 10% single premium) (Source: IRDAI reported
Financials). ABSLI has a nation-wide distribution presence through 425 branches, 9
bancassurance partners, 6 distribution channels, over 83,000 direct selling agents, other
Corporate Agents and Brokers and through its website. The company has over 10,000
employees and more than 16 lac active customers.

The company offers a complete range of protection solutions to help secure your family’s
future and provide financial support for your child’s education, wealth with protection
solutions, health and wellness solutions, retirement solutions, and savings with protection
solutions to help you stay financially secure in the future with small disciplined savings at
regular intervals. ABSLI puts people’s need first and aims to protect what is dear to the
customer, with assurance. While, Life Insurance cannot prevent risk, it can compensate
financial losses arising from risk. 

Aditya Birla Capital Limited (ABCL) is the financial services platform of the Aditya Birla
Group. With a strong presence across the life insurance, asset management, private equity,
corporate lending, structured finance, project finance, general insurance broking, wealth
management, equity, currency and commodity broking, online personal finance management,
housing finance, pension fund management, and health insurance business, ABCL is
committed to serving the end-to-end financial services needs of its retail and corporate
customers. Anchored by more than 17,000 employees, ABCL has a nationwide reach and
more than 200,000 agents / channel partners.

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

15
and ears on ground, helped BSLI cover more than 2 million lives since it commenced
operations and establish a customer base spread across more than 1500 towns and cities in
India. To ensure that our customers have an impeccable experience, BSLI has ensured that it
has lowest outstanding claims ratio of 0.00% for FY 2008-09. Additionally, BSLI has the
best Turn around Time according to LOMA on all claims Parameters. Such services are well
supported by sound financials that the Company has. The AUM of BSLI stood at Rs. 8165
crs as on February 28, 2009, while as on March 31, 2009, the company has a robust capital
base of Rs. 2000 crs.

Benefits of Birla Sun Life Insurance

 Multiple Plans:Birla Sun Life Insurance offers you a host of life insurance products -
Term Insurance, Endowment policy, ULIP, Money Back Life Insurance and Whole
Life Insurance.

 Flexible Premiums:You can enjoy flexibility in paying premiums by opting for

monthly or annually premium paying option.

 Payouts and Benefits:You can opt for Annual Income or Lump Sum benefit payout
option.

 Tax Benefits:You are entitled to Tax saving benefits under Section 80C, 80CCC,
80CCE, 80D, Sec 3 of 10(10A) and 10(10D) under the Income Tax Act, 2016.

16
Following are the Life Insurance plans that Birla Sun life Insurance Company Ltd.

Protection Plans

1. ABSLI Digi Shield Plan: ABSLI Digi Shield Plan is a non-linked non-participating term
insurance plan which you can customize as per your requirements at an affordable cost.
Depending on your requirement, this policy allows you to choose your sum assured and plan
option. Once you choose a sum assured, the plan option determines the enhancements to your
chosen life cover over the course of your policy.

2. ABSLI Income Shield Plan: A non-linked non-participating term insurance plan, the
ABSLI Income Shield Plan especially caters to meet the requirement of salaried professional
and entrepreneurs. In case of death of the insured, it ensures that the family continues to earn
the same monthly salary or income necessary to enjoy the same lifestyle as before.

3. ABSLI Life Shield Plan: The Aditya Birla Sun Life Insurance Life Shield Plan offers you
the flexibility to make a combination from amongst 8 different plan options as per your
family's needs. It focuses heavily on customization as it is based on the fact that every family
is different and so are their protection needs.

4. ABSLI Vision Money Back Plus Plan: ABSLI Vision Money Back Plus Plan provides
you with regular liquidity to meet your financial requirements along with adequate life cover
against any unfortunate event. The minimum sum assured is INR. 1,00,000.

5. ABSLI Vision Life Secure Plan: A traditional participating whole life insurance plan, the
policyholder receives the sum assured, accrued regular bonuses and Terminal Bonus (if any).
You can also enhance the protection with riders such as ABSLI Accidental Death and
Disability Rider, ABSLI Critical Illness Rider and ABSLI Waiver of Premium. The sum
assured starts from INR. 2,00,000 with minimum premium of Rs. 12,000 p.a..

6. ABSLI Guaranteed Milestone Plan:This plan offers full benefits on death or maturity
with guaranteed additions that boost your corpus year on year. The minimum sum assured is
INR. 2,25,000 with options to choose policy term of 12, 14, 16, 18, 20, 22, 24 & 26 years.
7. ABSLI POS: Jeevan Bachat Plan: The ABSLI POS - Jeevan Bachat Plan comes with
guaranteed saving benefits and financial protection to your family in your absence. You have
two options of Premium Paying Term - single play and limited pay.
8. ABSLI Vision Star Plan: The ABSLI Vision Star Plan is designed keeping in mind of the
changing goals and aspirations of your child. Hence, throughout the term, you have the
flexibility to get the benefits of your payouts as per your child's need, and deferring the
payouts if required. During this time, if you face any unfortunate event, then the policy

17
continues in your absence and your child receives the amount he/she is eligible for, at the
time of payouts as decided by you. The minimum sum assured is INR. 1,00,000.
9. ABSLI Empower Pension Plan: The ABSLI Empower Pension Plan is a unit linked non-
participating pension plan that is simple and hassle-free. It helps you accumulate premium
and offers investment returns at the time of your retirement. The basic premium is INR.
18000 p.a. and Rs. 36,000 p.m. depending upon the time of payment - annually, semi-
annually, quarterly or monthly with an entry age of 25-70 years.
10. ABSLI Immediate Annuity Plan: The ABSLI Immediate Annuity Plan is a unique
insurance plan which offers regular income after retirement through a single premium
payment as a lump sum amount. You are entitled to tax benefits under Section 80CCC and no
medical tests are needed to avail this policy.
11. ABSLI Hospital Plus Plan: The ABSLI Hospital Plus Plan offers a fixed cash amount in
the event of hospitalization. You can supplement your policy by mitigating additional
expenses with a flexibility of choosing from 4 benefit options to suit your needs. This policy
also entitles the insured tax benefits as per section 80D of the Income Tax Act, 1961.
12. ABSLI Cancer Shield Plan: The specialty of this plan is that it is meant to provide cover
at all stages of Cancer i.e. early stage of cancer and major stage of cancer. If the diagnosis
states a major stage of cancer, you have an option to receive monthly income for 5 policy
years. The minimum sum insured is INR. 10,00,000 while the maximum is limited to INR.
50,00,000.
13. ABSLI Criti Shield Plan: Certain diseases such as heart and kidney ailments demand
more money than hospital bills. Aditya Birla Sun Life Insurance Criti Shield Plan protects
your savings and lifestyle against such expenses. It covers all stages of cardiac conditions and
renal conditions with a waiver of premium for 5 years on diagnosis of early stage conditions.
14. ABSLI Wealth Max Plan: A single premium unit linked insurance plan which gives you
the flexibility to add top-ups whenever you have additional savings and flexibility of partial
withdrawals to meet any emergency fund requirements. The basic sum assured is 1.25 | 5 | 10
times the basic premium which ranges between a minimum of INR.1,00,000 for a policy term
of 5 & 10 years or a minimum INR. 2,00,000 for a policy term of 15 & 20 years.
15. ABSLI Wealth Secure Plan: Aditya Birla Sun Life Insurance Wealth Secure Plan
combines long term savings and whole life coverage. It requires you to pay premium for a
limited term which entitles you a cover for whole life. The basic premium ranges between
INR. 20,000, 30,000 and 60,000, depending on the time of payment - annually, semi-annually
and monthly or quarterly.

18
16. ABSLI Wealth Assure Plan: A protection and savings plan that enables your wealth to
grow steadily over time. This investment cum insurance plan allows you partial withdrawals
in emergency situations and also lets you add top-ups when you have additional savings. The
minimum basic premium ranges from INR. 1,00,000 if paid annually or INR. 1,80,000 if paid
monthly.
17. ABSLI Fortune Elite Plan: Under the ABSLI Fortune Elite Plan, you decide how to
invest your premiums in one of the three investment options - Systematic Transfer Option,
Return Optimizer Option or the Self-Managed Option.
18. ABSLI Wealth Aspire Plan: This insurance scheme helps you accumulate substantial
financial corpus by proving the flexibility to choose plan options, policy term, premium
paying terms and 4 investment options. You also have the flexibility of partial withdrawals
and adding top-ups in case of additional savings.

Achievements of Aditya Birla Capital

1. Among the Top 5 Private Diversified NBFCs in India.

2. One of the largest Private Life Insurance Companies in India.
3. One of the largest General Insurance Brokers in the country.
4. Registered an AUM of INR. 2463 billion and 34% y-o-y growth as of 31st March,
2019.
5. Consolidated Lending Book has grown over 40% y-o-y to Rs 388 billion as of 31st
March, 2019.

B. Life Insurance Corporation

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term contracts and
during the currency of the policy it requires a variety of services need was felt in the later
years to expand the operations and place a branch office at each district headquarter. re-
organization of LIC took place and large numbers of new branch offices were opened. As a
result of re-organisation servicing functions were transferred to the branches, and branches
were made accounting units. It worked wonders with the performance of the corporation. It

19
may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed
1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross
2000.00 crore mark of new business. But with re-organization happening in the early eighties,
by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.

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

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC
has issued over one crore policies during the current year. It has crossed milestone of
issuing 1,01,32,955 new policies by 15th Oct, 2015, posting a healthy growth rate of 16.67%
over the corresponding period of the previous year.

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

Various Plans offered by LIC are as follows :

Endowment Assurance Plans

1. Jeevan Amrit: This plan is designed for a higher cover at a lower cost. In this plan
premium payment is limited to 3 or 4 or 5 years and the premium payable during the first
year is higher than the premiums payable in subsequent years.

20
2. New Jana Raksha Plan : Is an Endowment Assurance plan that provides financial
protection against death throughout the term of plan. It pays the maturity amount on survival
to the end of the term.

3. Jeevan Mitra (Double Cover Endowment Plan): Is an endowment plan which takes care
of the financial needs even if death of the policyholder for the whole term of the plan.

4. Jeevan Mitra (Triple Cover Endowment Plan): Is an endowment plan where thrice the
Sum Assured plus all bonuses on the basic sum assured to date is payable in a lump sum upon
the death of the life assured.

5. The Endowment Assurance Policy: This policy has a provision for the family of the Life
Assured in event of his early death and also assures a lump sum at a desired age.

6. The Endowment Assurance Policy-Limited Payment : In this policy the payment of

premium can be limited either to a single payment or to a term shorter than the policy.

Children Plans

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

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

3. Jeevan Chaya: It is a plan where financial protection is given against death during the
term of the plan. It is an Endowment Assurance plan. Besides this benefit one-fourth of Sum
Assured is payable at the end of each of last four years of policy term irrespective if the life
assured dies or survives the duration of the policy.

4. Komal Jeevan: Is a Money Back Plan which can be bought by the parent or grand parent
for their child from the age of 0-10years. This plan gives financial protection against death
during the duration of the plan with periodic payments on survival at specified durations.

21
5. Child Future Plan: A policy where the future needs like education, marriage and other
requirements are taken care of. This plan provides a benefit which not only takes care of the
risk cover of the child during the policy but also after 7 years of the policy being expired.

6. Child Career Plan: A plan to meet the educational and other needs of the child. It
provides the risk cover on the life of child during the policy term as well as 7 years after the
policy has expired. There are also Survival benefits given to the life assured at the end of a
specific duration.

7. Child Fortune Plan: Is a unit linked plan which offers long term capital appreciation.

8. Marriage Endowment Or Educational Annuity Plan: This is an Endowment Assurance

plan that provides for benefits on or from the selected maturity date to meet the
Marriage/Educational expenses of the named child.

Money Back Plan

1. Bima Bachat: Is a money-back policy which offers financial security and assurance to the
policy holder and his family. The policy holder has to pay only one premium.

2. Money Back-20 years : Is an endowment plan where periodic payments of partial survival
benefits are paid during the term of the policy till the policy holder is alive, As the policy
name goes this plan 20% of the sum assured is payable after 5,10,15 years and the balance
40% accrued bonus is payable at the 20th year.

3. Money Back 25 years: Is the same as the above plan only in this plan the 40% accrued
bonus is payable at the 25th year.

Pension plans

1. New Jeevan Dhara- I: is a Deferred Annuity plans that allows the policyholder to make
provision for regular income after the selected term.
2. New Jeevan Suraksha - I: Is a deferred annuity plan.
3. Jeevan Nidhi: Is a deferred annuity plan with profits.

22
4. Jeevan Akshay - VI: By paying a lump sum amount this immediate annuity plan can be
bought.
Unit Plans
1. Child Fortune Plus: Is a plan for children and to meet their educational needs. Its a unit
linked plan with long term capital appreciation.

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

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

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

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

Whole Life Plans

1. Jeevan Anand: Is a combination of two plans- Endowment Assurance and Whole Life
plan.

2. Jeevan Tarang: This is a with-profits whole of life plan which provides for annual
survival benefit at a rate of 5½ % of the Sum Assured after the chosen Accumulation Period.

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

Golden Jubliee Plan

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

23
3. Main Plans of BSLI
(1) Birla Sun life insurance Platinum Plus - It is a unit linked, non-participating insurance
plan. In this plan, the investment risk is borne by the policyholder but not if this policy is
detained till maturity.

Policy parameters

Entry age 18-70

Minimum annual premium Rs. 50000

Minimum sum assured 5 times annual premium

Policy term 10 years

Premium paying term 3 years

Premium and sum assured

You can pay your policy premium annually, half-yearly, quarterly or monthly, subject to a
minimum instalment premium of:

Rs. 50,000 per annum

Rs. 25,000 half-yearly

Rs. 15,000 quarterly; or

Rs. 10,000 per month (3 monthly instalments required at issue)

You choose your Sum Assured (minimum 5 x annual premium).

Risk profile

 0-40% in money market & cash

 0-100% in debt instruments & derivatives
 0-100% in equities & equity related securities.

24
Maturity Benefit
On maturity, your Fund Value will be paid to you.
In addition, we will pay an amount equal to:

 the number of units under your policy at that time; times

 the excess, if any, of the Guaranteed Maturity Unit Price over the then prevailing unit
price

Death Benefit
In the unfortunate event of the death of the life insured prior to the maturity date of the
policy, we will pay to the nominee the greater of (a) the Fund Value or (b) the Sum Assured
reduced for partial withdrawals as follows:

 Before the life insured attains the age of 60, the Sum Assured payable on death is
reduced by partial withdrawals made in the preceding two years.
 Once the life insured attains the age of 60, the Sum Assured payable on death is
reduced by all partial withdrawals made from age 58 onwards.

Partial withdraws

 Partial withdraw after 3 complete policy years.

 Minimum partial withdraws Rs.5000

Policy surrender: - After 3 policy years and you will get 100% fund value at that time.

 The guaranteed maturity benefit and option you choose.

 The enhanced sum assured you desire.
 The plan term and your gender and age at entry.
(2) Birla Sun Life Insurance Saral Jeevan Plan – The saral jeevan plan provides the dual
benefit of protection and investment. So, it is the ideal policy if you want to secure your life
and build wealth at the same time.

Policy parameters
Entry age 18-55

25
Policy term 10, 15, and 20 years
Age at maturity 65 or less
Mode of Premium Payment - Annual, Semi Annual, Quarterly, Monthly.
Maturity Benefit
Maturity benefit will be sum assured plus fund value at the end of maturity time.
Death Benefit – Your nominee will receive both sum assured and fund value in the
unfortunate event of death.
Investment Funds

 Protector
 Builder
 Enhancer
Charges of Policy

 Premium Allocation Charge- Nil (This means all of your policy premium will be
invested in the investment funds of your choice).
 Fund Management Charge
 Mortality charges
 Surrender charges etc.

(3) Birla Sun Life Retirement plan

Policy parameters

18 years – 80 years
Entry Ages

Term -

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

Premium Minimum Rs. 9600 p.a. (premium should be multiple of Rs. 1200)

26
Benefits
In the unfortunate event of death of the policyholder the nominee will receive the higher of:
75% of the base premium and all renewal base premiums paid. OR the surrender value at the
time plus all accumulated survival benefits.

Tax benefits
Under section 80CCC and 10(10A)

Partially withdraw
You can do partially withdraw min. Rs.5000

27
4. Main plans of LIC
(1) Marriage Endowment Or Educational Annuity Plan: This is an Endowment
Assurance plan that provides for benefits on or from the selected maturity date to meet the
Marriage/Educational expenses of the named child.

Entry age 18 (min.) 60(max)

Sum assured 50000 (min) no limit (max)
Term 5 (min) 25 (max)
Mode of payment monthly, quartely, half yearly, yearly

FEATURES

The Marriage Endowment/ Educational annuity plan provides a sum assured to be kept aside
for the expenses of marriage or higher education of the policyholder's children. Premiums
payable for selected term or till death of the life Assured. Benefits will be given only after the
selected term.

Maturity benefits
Sum Assured + Bonus

Accident:

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

(2) Jeevan saral plan of LIC

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

  Minimum Maximum

Age 12 Yrs (completed) 60 Nearest Birthday

Term 10 35

28
Age at maturity Maximum 70 years

In case of term rider, minimum and maximum age of entry will be 18 and 50 years
respectively. Further minimum sum assured will be Rs.1 lakh.
Premium:
Minimum premium: Rs 250 per month for entry age up to 49 years and Rs.400 per month for
entry age 50 years and above. The premium shall be in multiple of Rs.50 per month.

Premium Mode:
Yearly, Half yearly, Quarterly and Monthly under Salary Saving Scheme.

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

Age at
Policy Term
Entry

  10 yrs 15 yrs 20 yrs 25 yrs

20 11,156 19,628 28,039 36,839

40 10,431 17,839 24,598 30,854

50 8,442 13,444 16,164  

DeathBenefits:
Under this plan death cover will be same irrespective of age at entry and term. On death the
nominee will receive 250 times the monthly premium, plus return of premiums excluding
extra/rider premium premium.

3) New Jeevan Suraksha Plan

29
This pension plan is a vehicle for planning a life long pension and is also tax deferred. Not
only can you plan a pension for life with the help of these annuities but these schemes also
help you reduce your tax liability.

POLICY PARAMETERS

Min Max
Entry Age 18 70
vesting age 50 79
35 years.
deferment period  2 years

Premium Rs. 250 p.m.

Yearly, half yearly,
Mode of payment
quarterly, monthly

Features
>=1,00,000 <
AMOUNT (Rs) >=2,00,000 < 5,00,000 >= 5,00,000
2,00,000
Rebates Available for
3% 4% 5%
Single Premium

Rebates Available for

6% 7% 8%
Annual Premium

Death Benefits
If death occurs within 10 years - 3% (interest on all premium given)
Between 11 to 20 years 4%
After 20 years 5%
5. COMPARISON BETWEEN MAIN PRODUCT OF BSLI AND LIC

30
Birla sun life insurance Life Insurance Corporation Of India

Name of the scheme Name of the scheme

Saral jeevan plan Jeevan saral

Purpose Purpose
BSLI saral jeevan plan comes with a bouquet of jeevan saral plan comes with a bouquet of
benefits, which fulfill needs of life cover and benefits, which fulfill needs of life cover.
investment at an affordable rate.

Type of policy Type of Policy

Unit linked endowment plan Traditional plan

Returns and added benefits Returns and added benefits

1. An easy and simple plan
2. Earn efficient returns
3. Match your risk profile at every stage
4. Death benefits with a plus, that is, sum
assured plus the fund value.
5. Unmatched liquidity
6. At the end of policy term you get fund
value.
7. The policy can be surrendered at any time
during the tenure of the policy subject to
surrender charge. The charge will be zero
after 4th policy year.
1. Maturity benefit is total premium +
bonus (approx Rs 50/thousand)
2. Death benefit is 250 times of
monthly premium
3. The policy can be surrendered at
any time during the tenure of the
policy subject to surrender charge.
The charge will be zero after 4th
policy year.

Payment of premium
Pay the premiums on an annual, semi-annual, Payment of premium
quarterly or monthly mode. Pay the premiums on an annual, semi-
annual, quarterly or monthly mode
Eligibility
18 to 55 years of age Eligibility
18 to 70 years of age
Term of maturity
There is an option of three policy terms 10 years, Term of maturity
15 years and 20 years. There is an option of three policy terms 10
years, 15 years and 20 years.
Tax benefit
Avail of tax benefit under section 80C and section Tax benefit
10(10 D) of the Income Tax Act, 1961. Avail of tax benefit under section 80C and
section 10(10 D) of the Income Tax Act,
1961.

31
 6. Research Methodology
Research is a systematic activity to describe, predict, explain and control the observed data. It
is a way to finding new things and explores new ideas. It is an activity that correct and verify
knowledge.
A. Objectives of the study
 To find out the criteria that people think about before investing in a life insurance
policy.

 To find out the level of awareness of LIC and BSLI among people.

 To analyze the customer satisfaction regarding LIC and BSLI.

B. TYPE OF DATA COLLECTED

There are two types of data. They are primary and secondary data. Primary data is defined as
data that is collected from original sources for a specific purpose. Secondary data is data
collected from indirect sources.

 Primary data:

Utilizing the information taken the secondary data, questionnaire was prepared to know
about the customers. Primary data were collected directly from the customer’s
responses.

C. Research Approach:

 Survey method was adopted to gather the primary data. This survey include
questionnaire in the Google sheet.

D. Sampling plan

Target people: People who have life insurance and also want to insured.

Sample size: Sample size of the study is 100 respondents.

The main statistical tools used for the collection and analyses of data in this project are:

 Questionnaire
 Bar graph
 Pie chart.

32
 7.Data Analysis and Interpretation

Interpretation: - 88 people say that investment in insurance sector is good option and 12 are
saying not.

Interpretation: - 93 people are insured and 7 are not insured.

33
Interpretation: - 66 persons are saying that they are insured from the public sector and 34
from the private sector.

Interpretation: - 66 persons saying that they have LIC policy and 34 persons are having
Birla Sunlife insurance.

34
Interpretation: - 61% are having Health Plan of LIC or BSLI and 53% have Whole life plan.
The least plan purchased is Retirement plan which is 30%.

Interpretation: - Here, 60% of people invest in LIC/BSLI for the maturity benefits. 47%
people chooses High Interest. 75% of people not go for the growth of the company. 48%
invest because of reasonable annual premium.

35
Interpretation: - 73% people says that LIC is better for investment than BSLI.

Interpretation: - 60% of people gets 5-8% of interest from LIC/BSLI policy. 25% gets 8-
12% of interest.

36
Interpretation: - 61% of people are having 3 or less than 3 policies. 34% are having 4 to 6
policies. 5% only are having more than 6 policies.

Interpretation: - Here 40% chooses all of the above. 31% takes the insurance for saving.
26% for the security. Only 12% for the tax benefits and 25% for the life risk.

Interpretation: - 41% of the people are the customers for 3-6 years. 37% of the people are
the customers for less than 3 years. 11% of the people are the customers for more than 9
years.

37
Interpretation: - 43% of the people are influenced by insurance agent. 40% of the people are
influenced by their friends and relatives. 12% through electronic media.

38
 8. Findings & Conclusions

 88 people saying that investment in insurance sector is good option and 12 are saying

no.

 93 people have insurance while 7 people are not insured.

 66 persons are insured from the public sector (LIC) while 34 persons are insured from

the private sector (BSLI).

 Most of the people have health plan and whole life plan.

 Most of the people invest for Maturity Benefits.

 People have more faith in govt. Companies than the private.

 Most of the people gets 5-8% interest.

Conclusions

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

39
 9. Suggestions

1) Information regarding new product should be provided to the customers.

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

4) Company should target each and every class of the society.

5) Charges should be low of the policies.

6) Annual premium should be reasonable.

7) BSLI Company should work in systematic way so that the customers will attract to buy
their insurance.

10. 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.

40
 11. Bibliography

A. Reference Newspapers

 Economics Times
 Times of India
 Business Line
 Business Standard

B. Reference Websites

 www.birlasunlife.com

 www.licindia.com

 https://www.investopedia.com/terms/f/financial_sector.asp

 https://www.coverfox.com/life-insurance/life-insurance-companies/birla-sun-life-
insurance/

41
 12. Annexure

Questionnaire

Name ……..
Age ……
Gender
 Male

 Female

1) Do you think insurance sector is a good option for investment?

A) Yes
B) No
2) Are you Insured?
A) Yes
B) No
3) From which sector you insured?
A) Private
B) Public
4) Which company’s policy do you have?
A) Birla sun life
B) LIC
5)In Which type of policy you have invested?
A) Whole life plan
B) Retirement plan
C) Children plan
D) Health plan
6) Why do you invest in this(LIC/BSLI) company?
A) High Interest

42
B) Maturity Benefits
C) Growth of company
D) Reasonable annual premium
7) Which one is better for investment according to you?
A) LIC
B) Birla Sunlife Insurance
8) How much Percent of interest you get from it?
A) Below 5%
B) 5-8%
C) 8-12%
D) Above 12%
9) How many insurance policies you have?
A) Up to 3
B) 4 to 6
C) More than 6
10) For what have you insured for yourself?
A) Saving B) Covering Life Risk
C) Tax Benefits D) Security to family
E) All of the above F) None of the above
11) For how long have you been a customer of your present Life Insurance Company?
A) Less than 3 years B) 3-6 years
C) 6-9 years D) more than 9 years
12) Who influence you to get insured?
A) Insurance agent B) Electronic media
C) Print media D) Friends & Relative

Thanks

43
44