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The meaning of insurance: Insurance is a policy from a large financial institution that offers a person, company, or other entity reimbursement or financial protection against possible future losses or damages. A simple example will make the meaning of insurance easy to understand. A biker is always subjected to the risk of head injury. But it is not certain that the accident causing him the head injury would definitely occur. Still, people riding bikes cover their heads with helmets. This helmet in such cases acts as insurance by protecting him/her from any possible danger. The price paid was the possible inconvenience or act of wearing the helmet; this i.e. equivalent to the insurance premiums paid.
Major types of insurances are as mentioned below:
Life insurance: Descendant’s family receives financial benefits. Life insurances also offer paid proceeds to the beneficiary. Automobile insurance: Usually automobile insurances cover damages and legal financial expenditures of the automobile driver. Health insurance: Health insurance covers the expenditures associated to treatment and medical expenditures. Credit insurance: Borrowers often fail to repay debts, loans and mortgages due to certain unavoidable circumstances, credit insurances can be of great help during such crisis. Property insurance: Property protection insurance provides protection from risks associated to theft, fire, floods etc.
Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums.
How life insurance works?
There are three parties in a life insurance transaction; the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person. For example, if Mr. Rajan buys a policy on his own life, he is both the owner and the insured. But if Mrs. Anita, his wife, buys a policy on Rajan’s life, she is the owner and he is the insured. The owner of the policy is called the grantee (he or she will be the person who will pay for the policy). Another important person involved is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. The beneficiary is not a party to the policy, but is designated by the owner, who may change the beneficiary unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to changes in beneficiary, policy assignment, or borrowing of cash value. The policy, like all insurance policies, is a legal contract specifying the terms and conditions of the risk assumed. Special provisions apply, including a suicide clause wherein the policy becomes null if the insured commits suicide within a specified time for the policy date (usually two years). Any misrepresentation by the owner or insured on the application is also grounds for nullification. Most
Other reasons include estate planning and retirement. although policies can provide for greater or lesser amounts. a legitimate reason for insuring another person’s life. i. also usually a two-year period.e. The insurer (the life insurance company) calculates the policy prices with an intent to recover claims to be paid and administrative costs. .contracts have a contestability period. and to make a profit. The face amount of the policy is normally the amount paid when the policy matures. The insurance proceeds would pay for funeral and other death costs or be invested to provide income replacing the deceased's wages. if the insured dies within this period. The most common reason to buy a life insurance policy is to protect the financial interests of the owner of the policy in the event of the insured's demise. the insurer has a legal right to contest the claim and request additional information before deciding to pay or deny the claim. The owner (if not the insured) must have an insurable interest in the insured. The policy matures when the insured dies or reaches a specified age.
Reliance Capital is one India's most dominant private sector financial services companies. DLF Pramerica believes in delivering a secure & enrich life to there customers. Canara HSBC Life is a joint venture of Canara Bank. HSBC Insurance (Asia pacific) & Oriental bank of Commerce. They offer insurance products which help you with savings as well as give you protection. It is one of the partners of Reliance Capital Ltd which is a Anil Dhirubhai Ambani Group. They have a range of various products to offer.ICICI Prudential Life Insurance. They have more than 4100 branches all over India. The Company got its approval from IRDA in June 2008 and from that commencing its business. both well known & strong financial institutions came together in December 2000 to form an insurance company . is a joint venture between DLF Limited & Prudential International Insurance Holdings Limited. ICICI Prudential ICICI Bank with Prudential plc. The company started its operations in between 2000-2001. DLF pramerica Life Insurance Company Ltd. MetLife One of the fastest growing insurance company in India is MetLife.MAJOR PLAYERS OF INDIA IN INSURANCE Reliance Life Insurance is a part of the Reliance group. .
The company is involved in Life & health products. AEGON Religare AEGON Religare Life Insurance Company Ltd is a joint venture with AEGON. Religare and Bennett. AEGON Religare Life Insurance company was launched in July 2008. finance. Bajaj Allianz Bajaj who are into iron & steel. The Company started commencing .Max New York Life Max India’s leading multi business corporation & New York Life joined there hands in 2000.The Company started commencing its business in December 2000. insurance & etc and Allianz who provides financial services when came together they formed Bajaj Allianz Life Insurance Company.The company started there operations in 2001. Kotak Mahindra A joint venture of Kotak Mahindra group & Old Mutual plc is known as Kotak Mahindra Old Mutual Funds. Bharti AXA Bharti AXA Life Insurance is a joint venture between Bharti & AXA. The company started its functionality in December 2006 and they always believe to be a strong financial institute. HDFC Standard Life HDFC Standard Life Insurance is a joint venture between Housing Development Finance Corporation Limited & a Group of Standard Life Plc. Coleman & Company a part of Times Group.
It was one of the first international insurance company to set up its office in India in the year 1995. The company aim is to help customers in making there financial decisions. . TATA AIG The TATA Group and American International Group Inc together formed Tata AIG Life Insurance Co. SBI Life SBI Life Insurance Company Limited is a joint venture between State Bank of India and BNP Paribas Assurance. They started their operations in April 2001 Aviva Aviva.its business in 2001. It is present in more than 41 countries across the world.Tata Group holds 74% stake in the insurance venture with AIG holding the balance 26%. Future Generali Life Future Generali is a joint venture between Future Group of India & Italy based Generali Group. They introduced the concept of banc assurance in India. Ltd.Future Generali in India is into both Life & Non Life businesses in India. one of UK's largest insurance company and world's 5th largest insurance group. SBI Life offers a variety of plans in life insurance and pension.Shriram Group is one of India’s most esteemed financial services & Sanlam Group is one of the largest life insurance providers of South Africa. Shriram Life Shriram Life Insurance Company is a joint venture between Shriram Group and Sanlam Group. The company wants to provide a financial security to all.
INGI. Ltd. They introduced there plans in March 2008. IDBI owns 48% equity while Federal Bank and Fortis own 26% equity each. They received the IRDA license in February 2004 and started their operations in October 2004. Union Bank of India and Dai-ichi Mutual Life Insurance Company This firm was incorporated in the year 2007 and got their IRDA license on the 26th Dec 2008. They are the first solely owned private sector insurance company in India.Ltd. Bank of India. At present. Enam Group are the joint venture partners. ING Vysya Bank Limited and GMR Industries Limited. (INGI). Star Union Star Union Dai-ichi Life Insurance Co. ING VYSYA ING Life was established in 2001 as a joint venture between ING Insurance International B.V. Ambuja Cement Ltd. . they are IDBI Bank. Exide Industries Limited. Federal Bank and Fortis.IDBI Fortis IDBI Fortis Life Insurance Co. Sahara The Sahara Pariwar stepped into the insurance business by launching Sahara India Life Insurance Co. Ltd is a joint venture between three financial institutes. is formed by three various financial institutions.
5 crore from the Government of India. the first Indian life insurance company started its business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1870: Bombay Mutual Life Assurance Society. with a capital contribution of Rs. LIC Act. the first life insurance company on Indian soil started functioning. 1956. . viz. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. LIC formed by an Act of Parliament.
COMPANY PROFILE .
It has over 100. Brands Of Aditya Birla Group . Japan. the Philippines.7 billion (as on 31st March. offers a formidable protection for your future. Indonesia. India. It operates in all the important markets of the world like Canada. the United States.. The Aditya Birla Group has a turnover of close to Rs. Sun Life Financial Sun life financial –based in Canada-started in 1865. 2008). a leading international financial services organisation. It is led by its Chairman . Kumar Mangalam Birla.. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc. China and Bermuda. one of the largest business houses in India and Sun Life Financial Inc.Mr. Some of its key companies are Hindalco.000 employees across all its units worldwide. It is a leading performer in the life insurance market in Canada. Hong Kong. Grasim and Aditya Birla Nuvo. 119000 crores. the United Kingdom. 133875 crores (as on 31st March 2008).Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group. has assets under management of over US$404. Sun Life Financial Inc. with a market capitalisation of Rs.
To ensure that our customers have an impeccable experience. reach and ears on ground. pure term plan.5 crores as on 31st March 2008. the extensive reach through its network of 600 branches and 1. 000 empanelled advisors.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. product range. BSLI has ensured that it has lowest outstanding claims ratio of 0. Such services are well .00% for FY 2008-09. life stage products. BSLI has contributed significantly to the growth and development of the life insurance industry in India and currently ranks amongst the top 5 private life insurance companies in the country. Known for its innovation and creating industry benchmarks. It was the first private sector player to introduce a Pure Term plan in the Indian market. health plan and retirement plan) that the company offers. Additionally. It was the first player in the industry to sell its policies through the Bancassurance route and through the Internet. BSLI has covered more than 2 million lives since it commenced operations. Additionally. These category development initiatives have helped BSLI be closer to its policy holders’ expectations. To establish credibility and further transparency. BSLI has several firsts to its credit. BSLI has the best Turn around Time according to LOMA on all claims Parameters.75. This impressive combination of domain expertise. 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. Add to this. BSLI pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. The company has a capital base of Rs. And its customer base is is spread across more than 1500 towns and cities in India. It pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. With an experience of over 9 years. 1274. BSLI also enjoys the prestige to be the originator of practice to disclose portfolio on monthly basis. which gets further accentuated by the complete bouquet of insurance products (viz. 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.
2009. .supported by sound financials that the Company has. 2009. while as on March 31. The AUM of BSLI stood at Rs. 2000 crs. the company has a robust capital base of Rs. 8165 crs as on February 28.
. 1st to introduce “Free Look Period” and the same was made mandatory by IRDA for all other Life Insurance Companies. 1st to launch illustrations so that customers understand the products better before they buy. 1st to issue NAVs of funds for better transparency.Achievements of BSLI 1st to introduce ULIP fund options. 1st to disclose portfolio on a monthly basis.
According to the change in surrounding environment like changes in customer requirement. . Fees for the advisor is high than the other companies. Training process of the company is very strong.SWOT ANALYSIS OF BSLI STRENGTH: Multi-channel distribution and one of the largest distribution networks in India. There is no plan for the low income group. WEAKNESS: Company does not penetrate on the rural market at a time. 1 Million Policies sold within 3 and half years.
-which is an government company.OPPORTUNITY: Insurance market is very big. Plans for all income groups are not available which can create adverse effect later on the market share of the company. . THREATS: ‘OLD HABITS DIE HARD’: Its still difficult task to win the confidence of public towards private company. where company can expand its business easily. The company is facing major threats from LIC etc. It has many ULIP plans so it can grow in near future.
00 crore mark of new business. apart from its corporate office in the year 1956. 33 divisional offices and 212 branch offices. Apart from online Kiosks and IVRS. Kolkata. Chennai. New Delhi. As a result of re-organisation servicing functions were transferred to the branches. and branches were made accounting units. 100 divisional offices. It may be seen that from about 200. LIC’s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network.00 crores of New Business in 1957 the corporation crossed 1000. Bangalore. It worked wonders with the performance of the corporation. Info Centres have been commissioned at Mumbai.00 crores only in the year 1969-70. But with reorganisation happening in the early eighties. Today LIC functions with 2048 fully computerized branch offices. LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller. .00 crore Sum Assured on new policies. Pune and many other cities. by 1985-86 LIC had already crossed 7000. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. re-organization of LIC took place and large numbers of new branch offices were opened. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. With a vision of providing easy access to its policyholders. Ahmedabad. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. and it took another 10 years for LIC to cross 2000.MAJOR COMPETITOR AT A GLANCE LIC (LIFE INSURACE CORPORATION) LIC had 5 zonal offices. leaner and closer to the customer. Hyderabad. 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. 7 zonal offices and the Corporate office.
. LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. posting a healthy growth rate of 16. It has crossed milestone of issuing 1.01.955 new policies by 15th Oct. From then to now.67% over the corresponding period of the previous year. 2005.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.32.
Ltd Following are the Life Insurance plans that Birla Sun life Insurance Company Ltd. 4.It’s an non participating endowment plan offers you guaranteed returns and chance to earn survival benefit from the 3rd year onwards.This is also a nonparticipating endowment plan. You can withdraw this benefit each tear or can use it as to pay the premium dues. which you immediately can purchase just by . which gives you maturity and survival both benefits.This plan can take care of your financial commitments of yours towards your family by providing large cover at low cost. 5. 2.It is a unit linked. the investment risk is borne by the policyholder but not if this policy is detained till maturity.Birla Sun Life Insurance Co. Birla Sun Life Insurance Money Back Plus Plan .It’s an investment plan offering nine-funding option to choose and 100% equity fund option also. One remarkable point is that on every policy anniversary it increases your cover by an equal amount of your base premium. Two options are also there to choose 100% premium back or 125% premium back.In today’s fast life it’s really easy to buy an insurance plan. In this plan. Birla Sun life insurance Platinum Plus . Birla Sun Life Insurance Gold-Plus II . Birla Sun Life Insurance Saral Jeevan Plan . 7. Minimum age of entry for this plan is 18-55 and maximum maturity age is 70 years. Birla Sun Life Insurance Premium Back Term Plan . 6. Maximum term period for this plan is 20 years. 3. Birla Sun Life Insurance Guaranteed Bachat Plan .This is a low cost life cover promises you to refund the entire premium on maturity or death.)Birla Sun Life Insurance Term Plan . Free unlimited switches are given to you to manage your investments. 1. This plan offers good liquidity to you. non participating insurance plan.
Birla Sun Life Insurance ClassicLife Premier . Birla Sun Life Insurance Single Premium Bond . and option to double or triple the guaranteed maturity.It ensures a lifetime of tax-free investments to fulfill the needs of your dear ones. 0% allocation charges. It keeps you hassle free and provides you guaranteed returns at regular intervals. Birla Sun Life Insurance SimplyLife . It’s a short term investment plan provides you the option of 5 years or 10 years term period. It will give you 3% guaranteed returns on net policy charges. Birla Sun Life Insurance PrimeLife . 16.providing three health statements to the company.It’s a unit linked non-participating plan providing 8-fund options to choose. Birla Sun Life Insurance Dream Plan .It will give you guaranteed additions in the form of guaranteed units and a good choice of 8 investment funds are also there.For this policy you can pay lump sum premium payment at regular intervals. 9. It gives a choice of two death benefits.This plan will give you the choices of 3 fund options. 14. 13.It is a single premium policy gives you the benefit of life insurance and investments as well. 10. maturity ages & guaranteed returns of 3%.30 or whole life.It’s a single time investment with top up options. Bsli Saral Jeevan is the best option to go for. 15.This plan gives you the opportunity to make one time investment with no medical tests and will also gives you the facility of high entry age.This would provide you a life long cover till 100 years of age and will give you the option of tax-free partial withdrawals. You are free to choose the term period of 10. Birla Sun Life Insurance PrimeLife Premier . Birla Sun Life Insurance Supreme-Life . Birla Sun Life Insurance Flexi Cash Flow . which provides you guaranteed returns. 17.20.It’s a unit-linked policy. Birla Sun Life Insurance Flexi Save Plus . Birla Sun Life Insurance Flexi Life Line . It’s a market related plan provides you a good death benefit amount. 12. . It’s a nonparticipating ULIP policy. 11. 8.
. which provides you guaranteed returns. It helps you accumulate your premiums and the investment return there of into a corpus of your retirement. 19.participating ulip plan.18. 20. and option to double or triple the guaranteed maturity. You can choose your retirement age yourself whether you want to prepone/postpone it. Birla Sun Life Insurance Freedom 58 . 0% allocation charges. Birla Sun Life Insurance Children's Dream Plan .It’s a unit-linked policy.It’s a non. Birla Sun Life Insurance Flexi Secure Life Retirement Plan II .This will provide you the option to take a life cover or not.
4. Jeevan Anurag : Is plan designed for the children educational requirements . 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. 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. Jeevan Kishore : Is a plan which can be availed by the parent or grand parents of the children. 5. 3. 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. New Janaraksha Plan : Is an Endowment Assurance plan that provides financial protection against death throughout the term of plan. Jeevan Amrit : This plan is designed for a higher cover at a lower cost. The basic sum assured is given immediately on the death of the life assured during the term of the policy.Various Plans offered by LIC are as follows : Endowment Assurance Plans 1. 2. . 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. 6. Children Plans 1. It pays the maturity amount on survival to the end of the term. It is an endowment assurance plan for children of less than 12 years of age. 2. This plan can be taken on the parent’s life. The Endowment Assurance Policy : This policy has a provisions for the family of the Life Assured in event of his early death and also assures a lump sum at a desired age.
3. Jeevan Chhaya : 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. 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. 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
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.
or Rs. 50000 5*annual premium 10 years 3 years Premium and sum assured You can pay your policy premium annually.000 quarterly. half-yearly.It is a unit linked. . 15. quarterly or monthly. 50. 10.000 half-yearly Rs. 25.Some main Plans of BSLI: (1) Birla Sun life insurance Platinum Plus .000 per month (3 monthly installments required at issue) You choose your Sum Assured (minimum 5 x annual premium). In this plan.000 per annum Rs. non participating insurance plan. the investment risk is borne by the policyholder but not if this policy is detained till maturity. Policy parameters Entry age Minimum annual premium Minimum sum assured Policy term Premium paying term 18-70 Rs. subject to a minimum installment premium of: Rs.
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. Once the life insured attains the age of 60. we will pay an amount equal to: the number of units under your policy at that time. the Sum Assured payable on death is reduced by all partial withdrawals made from age 58 onwards. In addition. if any. the Sum Assured payable on death is reduced by partial withdrawals made in the preceding two years. Minimum partial withdraw rs. Maturity Benefit On maturity.5000 Policy surrender at that time. 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. your Fund Value will be paid to you. times the excess.Risk profile 0-40% in money market & cash 0-100% in debt instruments & derivatives 0-100% in equities & equity related securities. Partial withdraw Partial withdraw after 3 complete policy years. After 3 policy years and you will get 100% fund value .
halfyearly. Enhancer . quarterly or monthly (for ECS only) Accidental Death & Dismemberment Benefit (ADD) The annual policy premium is based on: The guaranteed maturity benefit and option you choose. The plan term and your gender and age at entry. Builder.(2) Birla Sun Life Insurance children’s Dream Plan – Policy parameters Entry Ages Term Premium paying frequency Addition of riders Life Insured (parent): 18 years – 60 years Nominee (child) : 30 days – 13 years 18 years less the age of child at entry Regular policy premiums can be paid yearly. Guaranteed Fund Value Partial Withdrawals Investment Funds Equals all premiums paid. less charges and guaranteed maturity benefit(s). The enhanced sum assured you desire. accumulated at 3% per annum Allowed after 3 complete policy years Protector.
. In case of death of the new life insured (child) prior to the end of the Term. Charges of policy Premium allocation charges Fund management charges Mortality charges Surrender charges etc. higher of 105% of the Fund Value or the Guaranteed Fund Value will be paid and the policy will be terminated. The policy is continued as usual except: •All riders and risk charges will cease •Only the policy administration charge and fund management charge continue. and •BSLI will start paying the Maturity Continuation Benefit on a monthly basis until the policy matures.AT Death The sum assured is paid to the nominee upon the death of the life Benefit insured (parent) The new life insured is the child and new owner is appointed as per your wishes.
(3) Birla Sun Life Insurance Saral Jeevan Plan – The saral jeevan plan provides the dual benefit of protection and investment. Poicy parameters Entry age Policy term Age at maturity 18-55 10. Investment Funds • Protector • Builder • Enhancer Charges of Policy • Premium Allocation Charge. . Semi Annual. Maturity Benefit Maturity benefit will be sum assured plus fund value at the end of maturity time. • Fund Management Charge • Mortality charges • Surrender charges etc. So it is the ideal policy if you want to secure your life and build wealth at the same time. Quarterly. Death Benefit – Your nominee will receive both sum assured and fund value in the unfortunate event of death.Nil (This means all of your policy premium will be invested in the investment funds of your choice). 15. and 20 years 65 or less Mode of Premium Payment - Annual. Monthly.
quarterly or monthly According to age of the insured person. Benefits – 1. if the surgery is listed in covered surgeries: BSLI pay a fixed benefit amount based on the grade of the covered surgery-Rs.g. Rs. In case of an admission for surgical management : 2. BSLI pay a fixed benefit amount of Rs. if the surgery is not listed in the covered surgeries: BSLI pay a fixed benefit amount of Rs. 25000.(4) Birla Sun Life Universal Health PlanThe universal health plan is in addition to the benefit amount payable under each health benefit. for 55. Policy parameters Entry Ages Term Premium paying frequency Premium 18 years – 65 years 3 years policy premiums can be paid yearly. 6725 p. 9724 p.a. 4756 p. 100000. 1000 per day in Hospital plus Rs. . Rs.). 15000 and Rs. 1000 per day in ICU. 1000 per day in Intensive Care Unit (ICU). This unique benefit helps you and your family with out of pocket health related expenses. Rs. 3.. for 45. 10000 for grade 1(major) to 5(minor) respectively. 2000 per day in hospital plus Rs.Rs. half-yearly.a..Rs. 50000. for 25 – Rs.a. (e.
(premium should be multiple of Rs. Tax benefits Under section 80CCC and 10(10A) . OR the surrender value at the time plus all accumulated survival benefits. 1961. this plan provides for no cash surrender value nor any policy loans. half-yearly. quarterly or monthly Minimum Rs.Tax benefit The premium paid by you up to 15000 (Rs. Death/Maturity benefit This plan has no death benefit or maturity benefit. 1200) 18 years – 80 years 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.a. Furthermore. to insure yourself and/or your family.a.20000 for senior citizens) p. (5) Birla Sun Life Retirement plan Policy parameters Entry Ages Term Premium paying frequency Premium policy premiums can be paid yearly. 9600 p. is eligible for tax benefit under section 80D of the income Tax Act. which is subject to amendments from to time.
Partially withdraw You can do partially withdraw min. Rs.5000 .
qtly. Entry age Sum assured Term Mode of payment 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. An amount equivalent to Sum Assured become payable immediately. Maturity benefits Sum Assured + Bonus Accident: Accident benefit equivalent to basic sum assured would be available by paying appropriate additional premiums in that behalf. 18 (min. . yly.Some 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. Premiums payable for selected term or till death of the life Assured. Benefits will be given only after the selected term. half yrly.) 50000 (min) 5 (min) 25 (max) 60(max) no limit (max) monthly.
50 per month. Survival Benefits: The sum payable at maturity however differs for different entry ages and terms. Half yearly.839 .400 per month for entry age 50 years and above.1 lakh. Quarterly and Monthly under Salary Saving Scheme.156 15 yrs 19. Eligibility: Minimum Age Term 12 Yrs (completed) 10 Maximum 60 Nearest Birthday 35 Age at maturity Maximum 70 years In case of term rider.monthly premium are given below for some of the ages and terms: Age at Entry Policy Term 10 yrs 20 11. The specimen Maturity Sums Assured (MSAs) per Rs. plus Loyalty additions. minimum and maximum age of entry will be 18 and 50 years respectively.039 25 yrs 36. Further minimum sum assured will be Rs. The premium shall be in multiple of Rs.628 20 yrs 28. Premium Mode: Yearly.(2) Jeevan saral plan of LIC Plan Details: This plan is appropriate for employees seeking life cover through Salary Savings Schemes.100/. Premium: Minimum premium: Rs 250 per month for entry age up to 49 years and Rs. if any. On Maturity the individual will receive maturity sum assured.
444 24.40 50 10.854 Death Benefits: Under this plan death cover will be same irrespective of age at entry and term.m. quarterly.839 13. monthly Max 70 79 35 years. Yearly. . plus return of premiums excluding extra/rider premium premium.598 16. On death the nominee will receive 250 times the monthly premium. (3) New Jeevan Suraksha Plan 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.442 17.431 8.164 30. POLICY PARAMETERS Min Entry Age vesting age deferment period Premium Mode of payment 18 50 2 years Rs. 250 p. half yearly.
Units will be allotted and cancelled based on the Net Asset Value (NAV) of the respective fund of the date of allotment / cancellation. There is no Bid-Offer spread (both the Bid price and Offer price of units will be equal to the NAV).00.00.000 < 2. He can also choose the level of cover within the limits.000 3% >=2.000 4% >= 5. which will depend on the mode and amount of premium he/she desires to pay.00.000 5% 6% 7% 8% Death Benefits If death occurs within 10 years Between 11 to 20 years After 20 years (4) LIC's Market Plus Plan It is a unit linked deferred pension plan. 3% (interest on all premium given) 4% 5% .000 < 5.Features AMOUNT (Rs) Rebates Available for Single Premium Rebates Available for Annual Premium >=1. Fund Management Charges (FMC) and whether fund is expanding or contracting under each fund type.00. The NAV will be declared on a daily basis and will be based on the investment performance. The allocated premium will be utilized to buy units as per the selected fund type.00. The Policyholder's Unit Account will be subject to deduction of charges. The policyholder can choose the plan with or without risk cover.
Guaranteed Securities / Corporate Debt Not less than 80% Not less than 65% Short-term investments such Investment in as money market Listed Equity instruments(Including Govt.000 for Regular premium (When life cover is opted) (Max) Regular Premium . Shares Securities & Corporate Debt) 100% Not more than 85% NIL Not less than 15% and not more than Fund Type Bond Fund Secured Fund .a. 40-75 (min) NIL.000 for Single 50.20 times of the annualized premium. for Regular premium and Rs.(when no life cover is opted) Rs.000 p. Rs. 10. 5. Minimum Deferment period 5 years Investment fund types: Investment in Govt. / Govt.Policy parameters Entry age 18-70 Premium (Min) Rs.000 for Single premium (Max) No limit Vesting age Sum Assured premium. 25.
35% Not less than 50% Not less than 30% and not more than 50% Not less than 60% and not more than 80% Balanced Fund Not more than 70% Growth Fund Not less than 20% Not more than 40% .
. The new life insured is the child and new owner is appointed as per your wishes.after expiry of the term again basic sum assured + bonus is payable.Comparison between some main products of BSLI and LIC 1) Comparison between BSLI’s Children dream plan and LIC’s Marriage Endowment Or Educational Annuity Plan: In BSLI plan policy term is 18 years less the age of child at entry. half yearly. In LIC plan if death occurs due to accident then basic sum assured is payable on death immediately and further premiums are not payable. 2) Comparison between BSLI’s Saral jeevan plan and LIC’s Jeevan saral plan In BSLI plan entry age is 18-55 years In LIC plan entry age is 12-60 years In BSLI policy term is 10. In case of death benefit: in BSLI plan the sum assured is paid to the nominee upon the death of the life insured (parent). In LIC policy term is 10-35 years. Premium paying frequency is almost same i.e yearly . monthly. Maturity age is 70 years. 15. But in LIC plan policy term is 5-25 years. Maturity age is 65 years In LIC plan max. quarterly. In BSLI plan max. o In LIC plan fund value is not guaranteed. and 20 years. In BSLI fund value is guaranteed.
premium is 5000p.a.a. In BSLI min. In LIC plan min. . premium is 10000 p.
a.) In LIC plan vesting age is 50-79 yrs. In BSLI plan vesting age is 10-40 yrs from entry age (Max. Premium paying frequency is same i.3) Comparison between BSLI’s Retirement plan and LIC’s New Jeevan Suraksha plan. premium is 3000 p. 90yrs. half yearly. and monthly Death Benefits: In BSLI plan 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.e yearly. In BSLI plan entry age is 18-80 years In LIC plan entry age is 18-70 yrs. quarterly. In LIC plan min. OR the surrender value at the time plus all accumulated survival benefits. In LIC plan If death occurs within 10 years Between 11 to 20 years After 20 years 3% (interest on all premium given) 4% 5% . In BSLI plan min.a. premium is 9600 p.
a.4) Comparison between BSLI Platinum plus plan and LIC Market plus plan Entry age in BSLI and LIC is same i.a.e. In BSLI plan maturity benefit is guaranteed • In LIC plan maturity benefit is not guaranteed . 18-70 years. • In LIC plan premium is 10000p. In BSLI min. annual premium is 50000p.
To analyze the customer satisfaction regarding LIC and BSLI. .Objectives of study To determine and analyze the Market Potential of the Birla Sun Life Insurance Company in MOGA City. To study and determine the competitor (LIC) position in the market. To analyze market share of Birla Sun Life Insurance products in Moga city.
The mode of collecting primary data is questionnaire mode and sources of secondary data are various magazines. . Data Collection: . newspapers. research is an art of scientific investigation. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with the logic behind them. we should understand the meaning of research.RESEARCH METHODOLOGY- MEANING OF RESEARCHBefore understanding Research Methodology. It may be understood as a science of studying how research is done scientifically. In fact. Research in common parlance refers to a search for knowledge. books. DEFINITION OF RESEARCHResearch is a systematized effort to gain new knowledge” MEANING OF RESEARCH METHODOLOGY- Research Methodology.The objectives of the project are such that both primary and secondary data is required to achieve them. One can also define Research as a scientific and systematic search for pertinence information on a specific topic. It is necessary for the researcher to know not only the research. & websites etc. it is a way to systematically solve the research Problem. So both primary and secondary data was used for the project.
and thus happen to be original in character. Secondary data The secondary data on the other hand.Primary data The primary data are those data which are collected afresh and for the first time. are those which have already been collected by someone else and which have already been passing through the statistical process.Purposive research . Sample size – 100 people of MOGA City were selected Research ----.
DATA ANA 1) Do you think that investment in Insurance sector is good option? Particulars Yes No No. of respondents 90 10 .
No. 10 yes no yes. . 90 Interpretation : 90 people say that investment in insurance sector is good option and 10 are saying not. of respondents no.
.2) Which company’s policy do you have? Particulars BSLI LIC No. of respondents Interpretation: 40 people have BSLI policies and 60 have LIC. of respondents 40 60 60 50 40 30 20 10 0 BSLI LIC 40 60 No.
3) Which type of policy you have? Particulars Whole life plan Retirement plan Children plan Health plan Golden jubilee plan Total No. of respondents LIC 20 10 18 6 6 60 No. of respondents BSLI 10 4 22 4 0 40 25 20 15 10 5 0 pl an m en tp 20 22 18 No. of respondents BSLI pl an lif e ld re n H ea lth W ho le R et ire C hi Interpretation: 20 people of LIC and 10 of Birla have whole life plan. 18 peopl 22 of birla have Children plan. of respondents LIC 6 6 0 pl an pl an la n 10 10 4 4 No. G ol d en ju bi le e .
O. of respondents BSLI 4 8-12 % 6 Above12 % Interpretation: 14 people of LIC and 6 of Birla are getting 5-8% R. . 42 people of LIC and 28 of Birla are getting 8-12% interest. of respondents BSLI 0 6 28 6 Below 5 % 5-8 % 8-12 % Above12 % 45 40 35 30 25 20 15 10 5 0 0 0 5-8 % Below 5 % 14 6 42 28 No.4) What percentage of interest you get from it? Particulars No.. of respondents LIC 0 14 42 4 No.I. of respondents LIC No.
ro th f e O 4 4 8 1 2 1 0 1 2 1 8 G o im g o C . od ae f O 1 2 1 2 H h in re ig te st 0 5 8 1 0 1 5 2 0 Interpretation: 12 people of Birla are investing in this company due to its high interest. Annual premium is reasonable Maturity benefits No. 18 people of LIC say that they are investing in LIC due to growth of the co.5) Why do you invest in this(LIC/BSLI) company? Particulars High interest Good image of CO. of respondents LIC 8 12 18 10 12 No. . of respondents BSLI 12 4 12 4 8 M tu b n fits a rity e e A n a p m mis n u l re iu re so a le a nb G w o th C . Growth of the CO.
N. but 56 are saying no. 7) . 8 otherwise Q.6) Do you think that investment in BSLI is better than LIC ? Particulars Yes No No. of respondents Yes No 44 56 Interpretation: 44 people are saying that investment in BSLI is better than LIC.N. of respondents 44 56 No. (If NO then go to Q.
. at maturity time.V.a u ra te d . of respondents 10 16 8 4 6 N . then why? Particulars Guaranteed F.V t m tu a rity G w ra ro th te M re U IP p n o L la 8 1 6 R co e d isk v re A a oe ll b v Interpretation: 16 people are saying that because BSLI gives guaranteed F. o re o d n o f sp n e ts 6 4 1 0 Ga n e F . at maturity Growth rate More ULIP plan Risk covered All above No.7) If yes.V. 8 are saying it has more ULIP plans.
then why? Particulars LIC have govt. than BSLI High return No. stake. 12 LIC have govt. 24 Interpretation: 24 people are saying that investment in LIC is better it has govt. than BSLI. stake Brand loyalty of LIC Low A. stake Brand loyalty of LIC Low A. 6 LIC have govt. 14 are saying it has brand loyalty.P.P.P. 14 Low A.8) If no. of respondents 24 14 12 6 High return. . stake. than BSLI High return Brand loyalty of LIC.
then any information is given to you about that product? Particulars Yes No No. of respondents BSLI 16 24 40 35 30 25 20 15 10 5 0 No.9) When company launch new product . of 36 24 16 No Yes respondents respondents No. of respondents LIC 24 36 No. of Yes No 24 LIC Interpretation: 24 people of LIC are saying yes and 36 are saying no. 16 people of BSLI are saying yes and 24 are saying no about providing information.` 67 BSLI .
of respondents 20 26 14 40 No. 40 can’t say. do you think BSLI will have high growth rate? Particulars Agree Neutral Disagree Can’t say No. 26 are saying it will be neutral. of respondents 40 35 30 25 20 15 10 5 0 Agree Neutral Disagree Can’t say 20 26 14 40 No. Findings . and 14 are disagree. of respondents Interpretation: 20 people are saying that BSLI will grow in future.10) In near future.
Most of the people invest due to high interest of the policy in BSLI People have more faith in govt. 44 are saying investment in BSLI is better. 4 have retirement plan. 14 people invest in LIC due to its brand loyalty. 22 have children plan. 4 have health plan. . 90 people saying that investment in insurance sector is good option and 10 are saying no. 40 people have BSLI policies and 60 have of LIC. 10 people of BSLI have Whole life plan. Companies than the private. 56 people are saying that investment in LIC is better than BSLI. 26 people saying that BSLI growth will be neutral in near future. Most of the people of both LIC and BSLI are getting rate of interest 8-12% Most of the people have children plan of BSLI.
. 4) Company should target each and every class of the society. 2) The company should find out the no. 6) Annual premium should be reasonable. 7) BSLI Company should work in systematic way. 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.SUGGESTIONS 1) Information regarding new product should be provided to the customers. 5) Charges should be low of the policies.
As the sample size is small compared to the total population. therefore there can’t be full accuracy.LIMITATIONS Some of the respondents were not cooperative. . There are chances of biased information provided by the respondents. Area was limited. The time was limited.
So it is necessary for BSLI Co. . People have more faith in govt. can grow in future. that it should give more attention to that points or that areas where it lacks for further future growth. companies than private. Insurance sector is very wide and co.Conclusion Here in this study we see that people have more policies of LIC in comparison to BSLI.
licindia.Bibliography www.com Newspapers .google.birlasunlife.com www.com www.
What percentage of interest you get from it? (a) Below 5% (b) 5-8% (c) 8-12% (d) Above 12% . Do you think that investment in insurance sector is good option (a) Yes (b) No 2. Which company’s policy do you have? (a) Birla Sun Life Insurance 3. Which type of policy you have? (a)Whole Life Plan Health Plan (e) Golden jubilee plan (f) any other please specify___________________ (b) Retirement Plan (c) Children Plan (d) (b) LIC 4.ANNEXURE Name ____________________________________________________________ ______ Addres______________________________________________________ ___________ Gender_________Age ________Contact No. __________________________________ 1.
8) 7. then any information is given to you about that product? (a) Yes (b) No (b) Brand loyalty of LIC (d) Investment return is higher . If no then why? (a) Because LIC is having government stake.5. if yes then why? (a) Because BSLI gives guaranteed fund value at maturity time (b) Growth rate of company is high LIC (d) Risk factor is covered properly (e) all above (c) BSLI has more ULIP plans than (f) Any other (please specify)_____________ 8. Whenever company launch new product. Do you think that investment in BSLI is better than LIC? (a) Yes (b) No ( If your answer is no then jump to question no. Why do you invest in this company? (a) High interest (b) good image (c) Company growth (e) due to maturity benefits (d) Annual premium is reasonable (f) Any other please specify ______________________________ 6. (c) It has low premium plans than BSLI than BSLI (e) Any other 9.
10. In near future BSLI is having high growth rate. (a) Agree (b) neutral (c) disagree (d) can’t say .