A Study on experience and satisfaction of customers of

State Bank of India

A Project Submitted to
B. K. Birla College (Autonomous), Kalyan for partial
completion of the degree of Master in Commerce
Under the Faculty of Commerce

By

Abhijeet Chandrasen Kalkhair

Under the Guidance of

Dr. Anuradha.C.Hastak

B K BIRLA COLLEGE OF ARTS, SCIENCE AND

COMMERCE
Birla College Campus Rd, Gauripada,
Kalyan, Maharashtra 421301

January 2022

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Faculty of Commerce, B. K. Birla College (Autonomous), Kalyan
 2nd Page

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Faculty of Commerce, B. K. Birla College (Autonomous), Kalyan
 Index
Chapter No. 1 Introduction Page No.
History of Bancassurance
1.1 10
History of Bancassurance in
1.2 India 12

Introduction to Bancassurance 15
1.3
Features of Bancassurance
1.4 16
Types of Insurance Policy
1.5 17
Global scenario of
1.6 bancassurance 19

1.7 Bancassurance current scenario

in India 20

1.8 Types of Bancassurance 22

1.9 Need of Bancassurance 24

1.10 Models of Bancassurance 25

1.11 Advantages of Bancassurance 26

Model
32
1.12 Disadvantages of bancassurance
model

1.13 Bancassurance in SBI 34

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Faculty of Commerce, B. K. Birla College (Autonomous), Kalyan
 36
1.14 SBI Life Bancassurance Sales
structure
37
1.15 SBI Geographical Spread
38
1.16 SBI Life Insurance Products 47

1.17 SBI General Insurance products

59
1.18 Bancassurance emerging trends
and challenges

Chapter No. 2 Research Methodology 61-63

2.1 Objective of the study 61

2.2 Hypothesis 61

2.3 Scope of the study 62

2.4 Need of study 63

2.5 Limitation of the study 63

2.6 Sample Size 64

2.7 Data Collection 64

65-68
Chapter No. 3 Literature Review

Chapter No. 4 Data Analysis 69-91

Chapter No. 5 Conclusion and Suggestion 92

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Faculty of Commerce, B. K. Birla College (Autonomous), Kalyan
 Index-II
(List of Tables)

Chapter Name of Tables Page

No. 4 No
4.1 Age of Respondents 69
4.2 Gender of Respondents 70
4.3 Profession of Respondents 71
4.4 Respondents response if they are aware about 72
their bank selling insurance
4.5 Respondents response to the sources from which 74
they got information about bank giving insurance
4.6 Respondents response if they have purchased any 75
insurance policy through SBI
4.7 Respondents response to the insurance policy 76
being purchased
4.8 Respondents response for not purchasing 78
insurance from SBI
4.9 Respondents response to aspects that made them 79
purchase from SBI
4.10 Respondents response to documents required the 81
most in getting insurance
4.11 Respondents response if the documents are 82
tedious of SBI
4.12 Respondents response to documents being more 83
tedious of SBI or Insurance sector
4.13 Respondents response to level of satisfactory on 84
different aspect of purchase from SBI
4.14 Respondents response towards difficulties face 86
while purchase from SBI
4.15 Respondents response if they will continue to use 88
SBI Insurance
4.16 Respondents response if they would recommend 89
SBI insurance to People

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Faculty of Commerce, B. K. Birla College (Autonomous), Kalyan
 Index-III
(List of Charts and Graphs)

Chapter Name of Charts and Graphs Page

No. 4 No
4.1 Age of Respondents 69
4.2 Gender of Respondents 70
4.3 Profession of the Respondents 71
4.4 Respondents response if they are aware about 73
their bank selling insurance
4.5 Respondents response to the sources from which 74
they got information about bank selling insurance
4.6 Respondents response if they have purchased any 75
insurance policy through SBI
4.7 Respondents response to the insurance policy 77
being purchased
4.8 Respondents response for not purchasing 78
Insurance from SBI
4.9 Respondents response to aspect that made them 80
purchase from SBI
4.10 Respondents response to documents required the 81
most in getting insurance
4.11 Respondents response if the documents is tedious 83
of SBI
4.12 Respondents response to documents being more 83
tedious either of SBI or Insurance company
4.13 Respondents response to level of satisfactory on 85
different aspects of purchase from SBI
4.14 Respondents response towards difficulties face 87
while purchase from SBI
4.15 Respondents response if they would continue 88
using SBI Policy
4.16 Respondents response if they would recommend 89
SBI Insurance to others

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Faculty of Commerce, B. K. Birla College (Autonomous), Kalyan
 Certificate
This is to certify that Mr. Abhijeet Chandrasen Kalkhair has worked and duly
completed her/his Project Work for the degree of Master in Commerce under the
Faculty of Commerce in the subject of and her/his project is entitled, “ A Study on
experience and satisfaction of customers of State Bank of India ” under my supervision.

I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree or
Diploma of any University.
It is her/ his own work and facts reported by her/his personal findings and
investigations.

Seal of the Name and Signature of Guiding Teacher

College

Date of submission:

Faculty of Commerce, B. K. Birla College (Autonomous), Kalyan 7|Page

 Declaration by Learner

I the undersigned Miss / Mr. Abhijeet Chandrasen Kalkhair here by,

declare that the work embodied in this project work titled “ A Study
on experience and Satisfaction of Customers of State Bank of India Online Banking” ,
forms my own contribution to the research work carried out under the guidance of
Dr. Anuradha.C. Hastak is a result of my own research work and has not been
previously submitted to any other University for any other Degree/ Diploma to this or
any other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and Signature of the learner

Certified by

Name and signature of the Guiding Teacher

Faculty of Commerce, B. K. Birla College (Autonomous), Kalyan 8|Page

 Acknowledgment
(Model structure of the acknowledgement)

To list who all have helped me is difficult because they are so numerous and
the depth is so enormous.

I would like to acknowledge the following as being idealistic channels

and fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this project.

I would like to thank my Principal, Dr. Avinash Patil for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator Mr. Bharat Baghul , for
his moral support and guidance.

I would also like to express my sincere gratitude towards my project guide

Dr. Anuradha.C. Hastak whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers
who supported me throughout my project.

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 CHAPTER NO 1:
INTRODUCTION

1.1 History of Bancassurance

1778: Hints of Bancassurance existence

The distribution of insurance by the German Sparkasse in 1778 is the earliest contemporary
example of the concept of merging banking and insurance services.

1908: First Bank Insurance creation

The first bank insurance group (Savings Bank Life Insurance) was created in the United
States in 1908, with the goal of lowering the cost of insurance services and reaching a larger
range of clients through distribution inside banking services.

However, the financial crises of the 1920s, as well as the resulting regulatory constraints,
hindered the pace of banking and insurance group merger both in Europe and USA.

In the nineteenth century, attempts were made in Switzerland to merge banking and insurance
services (Basler Handels bank and Bank Helvetia formed the life insurance firm).

1933: Glass-Stegall Act in USA

Previously, banks in the United States were not permitted to offer insurance because to
limitations established by the Glass-Stegall Act of 1933, which served as a barrier between
banking and insurance. As a result, life insurance was mostly offered through personal
brokers who catered to the wealthy, leaving the bulk of American middle-class households
uninsured. With the abolition of this Regulation in 1999, the way was cleared for banks to
provide insurance and serve the substantial middle-class population.

1960: Reintroduction of Bancassurance in Europe

After another hiatus, the notion of combining banks and insurance businesses was
reintroduced in Europe in the 1960s. It was then that British banks began to sell life insurance
to its customers. The first was Barclays Bank, which established the Barclays Life insurance
firm in 1965 for this purpose. Reasonable belief, from a purely historical standpoint, the
British are regarded as the forefathers of banking and insurance union action (bancassurance).

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In the late 1960s, French banks swiftly embraced the newly revitalised concept of
collaboration between banks and insurance firms. Because to the effectiveness of bank
insurance connections, the word bancassurance is still used to denote the combination of
banking and insurance activities today.

1980: Bancassurance restriction in Spain

In 1980, the BANCO DE BILBAO Group purchased a controlling share in EUROSEGUROS

SA in Spain (originally LA VASCA ASEGURADORA SA). Their power, however, was first
primarily financial. This is due to Spanish legislation prohibiting banks from providing life
insurance. This legal stumbling block was removed in 1991.

1980: 3 Phases

1st Phase

1980, when banks offered insurance guarantees. They were a natural extension of banking
activity and had nothing to do with life insurance. Because this method did not view loan
insurance as bancassurance, It was concluded that these were the years when banks obtained
educational experience in this subject but did not distribute insurance.

2nd Phase

After 1980, a second phase was identified in which bancassurance became a permanent
component of most industrialised countries' financial systems. This occurred when the
banking industry began to offer savings products associated with life insurance, including tax
advantages.

3rd Phase

The late 1980s were regarded as a critical time in the development of bancassurance. Banks'
insurance services were diverse throughout this time period, not just in the field of life
insurance but also in general insurance. As a result, banks began to understand the benefits of
collaborating with insurance companies. This was reflected in the offered developments,
which began to fulfil the Demand of consumers more and more. As a result, the late 1980s
and early 1990s saw the rapid rise of bancassurance activity. At the same time, the start of
Bancassurance activities in Poland was registered.

The good outcomes of collaboration between banks and insurance firms aided in their ever-
increasing integration.

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As a result of these links, banks are increasingly eager to broaden their offering with new
insurance products. It might be believed that the end of the 1980s became the true date of the
aggressive expansion of bancassurance worldwide.

It is hard to ignore the regulatory hurdles that exist between banking and insurance activities,
which can be lowered by creating a bancassurance-friendly environment. The regulatory
obstacles between the banking and insurance industries must not be overlooked at this stage,
since they have been removed by creating a bancassurance-friendly environment.

It is also worth noting that the extent of financial sector deregulation, as well as the retention
of specific legislative requirements in particular nations, have led to the establishment of
various kinds of bancassurance. As a result, bancassurance evolved at an unusually rapid
speed and took on a variety of shapes and forms, which were also influenced by the
demography or economics of a specific nation, and, above all, by the demands and
expectations of consumers.

In Asia, it is predicted that bancassurance would contribute a significant portion of the

premium in the Asian markets because to the anticipated expansion in India and China.
However, the Middle East has perhaps the weakest acceptance of bancassurance products due
to the cultural and religious attitudes of the region's predominately Muslim clients, for whom
life insurance in its decently marketable form has been a unthinkable. However, with the
creation of Shariah-compliant Takaful products, views are changing, and hence widespread
adoption of correctly created life products has begun.

1.2 History of Bancassurance in India

Insurance has a long history in India. It is mentioned by Manu (Manusmrithi), Yagnavalkya
(Dharmasastra), and Kautilya ( Arthasastra ). The papers discuss the pooling of resources that
may be redistributed after disasters such as fire, floods, diseases, and starvation. This was
most likely a forerunner to current insurance. The oldest traces of insurance may be found in
ancient Indian history in the form of maritime trade loans and carrier's contracts. Insurance in
India has changed through time, greatly influenced by other countries, particularly England.

1818: Creation of Oriental Life Insurance

The formation of the Oriental Life Insurance Company in Calcutta in 1818 started the
emergence of the life insurance business in India. However, this company crumpled in 1834.

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1829: Entry of Madras Equitable

The Madras Equitable began doing life insurance business in the Madras Presidency in 1829.

1870: British Insurance Act

The British Insurance Act was approved in 1870, and in the latter three decades of the
nineteenth century, the Bombay Mutual and Oriental insurance firms were created in the
Bombay Residency. This age, however, was dominated by foreign insurance offices that
performed well in India, particularly Albert Life Assurance, Royal Insurance, Liverpool, and
London Globe Insurance, and the Indian offices faced stiff competition from the international
firms.

1912: The Act of Life Assurance companies started in 1912

The Indian Life Assurance Companies Act of 1912 was the first governmental act to govern
the life insurance industry. The Government of India began releasing returns of Insurance
Companies in India in 1914.

1928: The Indian Insurance Companies Act passed

The Indian Insurance Companies Act was passed in 1928 to allow the government to gather
statistical data on both life and non-life business performed in India by Indian and
international insurers, including provident insurance organisations.

1938: Insurance Act 1938

To safeguard the interests of the insurance public, the preceding law was unified and revised
by the Insurance Act of 1938, which included extensive measures for effective oversight over
insurers' actions.

2000: IRDA came into existence

The IRDA was established in 2000, with the Government of India issuing a notification
(Banking Regulation Act) on August 3rd, 2000, outlining the Bancassurance approval. IRDA
2002 Notification — paved the path for banks to act as corporate agents. Banks might engage
as a corporate agency with "No Risk Participation" or as a joint venture with "Risk
Participation" under RBI regulations.

IRDA Bancassurance Modelling

Pure Distribution (No Risk Participation)

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Referral - Database Sharing

Corporate Agency One Insurer

2000: SBI Entry in Bancassurance

The SBI's introduction into the insurance sector was the first for an Indian bank. On
December 28, 2000, the State Bank of India (SBI) established a joint venture collaboration
with Cardif SA (BNP Paribas Bank's insurance arm), France's third biggest insurance firm.
As a result, SBI Life was established in India. Since the SBI's arrival, a number of other
insurance firms have identified their preferred banking partners. Banks have partnered with
both life and nonlife firms in this process.

2002: Insurance Amendment Act 2002

Certain regulatory standards, as previously noted, constitute impediments to the

establishment of bancassurance in India. Thus, the Insurance (Amendment) Act 2002 comes
into effect to remedy the situation. Prior to it, it was plainly an unrealistic requirement that
slowed the country's deployment of Bancassurance. The present legislation makes the
following changes to the bancassurance industry.

1. Education and certification provisions: this obstacle has been effectively reduced by the
corporate insurance executive within the corporate agency.

2. Specified person to fulfil training and examination requirements: According to the new
IRDA regulations, only designated individuals must complete the training and examination
requirements as insurance agents.

2002: General Insurers partnered with PSU and private banks

From 2002 forward, PSU General Insurers partnered with key PSU and private banks.

Individual agent-oriented goods evolved into Bancassurance-friendly modifications that met

the demands of bankers' customers. By 2005, the Bancassurance channel had established
itself as a pillar in Marketing/Sales and the Insurers' Growth Path.

1.3 Introduction on Bancassurance

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 Source: https://cdn.corporatefinanceinstitute.com

Banking is evolving across the world owing to the development of new technology, the
universalization of banking operations, and the diversification of non-banking financial
activity. Because of all of these changes, the barriers that separated diverse financial services
have dissolved. The convergence of various financial services has resulted in operational
synergies and the creation of new concepts. Bancassurance is one of these.

The motivations for bancassurance differ as well. It is a way of product diversification and an
extra source of fee income for banks. Insurance firms view bancassurance as a means of
expanding market dominance and premium turnover. The client views bancassurance as a
boon in terms of lower prices, high-quality products, and doorstep distribution. Actually,
everyone has a chance to win here. Will it be effective in India? That can only be addressed
in the future; nonetheless, the initial move indicates that many banks appear to feel that
bancassurance will be a huge success in this country. Some European and Indian institutions,
which includes Bank of Baroda (BoB), Citi Bank, State Bank of India (SBI), HSBC and other
European Banks like Stanchart-Grindlays and ABN-Amro, are seeking to replicate the French
model's achievement. Bank profits in their main lending sector are declining rapidly in India
and abroad. As a result, banks are seeking for alternative revenue streams, such as the selling
of insurance products. Insurance product sales can result in large fees for banks (particularly
for regular premium products). Furthermore, one of the primary strategic benefits of properly
adopting bancassurance is the establishment of a sales culture within the bank. The bank can
use this to advertise regular banking products as well as other financial services.
Bancassurance is more than just providing insurance; it is also about altering a bank's

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mentality. Several banks have seen the potential of insurance in India and have taken
ownership shares in insurance businesses in addition to functioning as distributors. However,
the growth of bancassurance as a concept, as well as its actual use in many regions of the
world, has created a variety of possibilities and problems.

The term "bancassurance" comes from the French language.

Bancassurance is a partnership between a bank and an insurance firm to provide insurance

products or services to the bank's clients. IRDA defines banks working as corporate agents
for insurers to market insurance products.

It is an agreement between a bank and an insurance business that allows the insurance
company to market its products to the bank's clientele while both firms benefit.

Following liberalisation, the Indian banking and insurance industries grew swiftly in a
changing and complex economic environment. The integration of financial markets, the
introduction of new updated technology, the universalization of bank operations, and the
broadening of non-banking businesses have all resulted in significant changes in the banking
sector's operation. The bancassurance concept has grown in popularity in recent years, owing
to the opening up of the insurance market and the increase in the Government of India's FDI
(foreign direct investment) quota. Bancassurance has piqued the interest of banks for the
simple reason that it allows banks to cover both banking and insurance functions in their
operations. Bancassurance, according to the Insurance Regulatory and Development
Authority (IRDA), is "a model in which banks function as business agents for insurance firms
to act as channel partners for insurance products." In this arrangement, banks and insurers
form a joint venture in which the bank serves as a distribution partner for the insurance
company's goods, selling them to current and new clients. This type of arrangement is
beneficial to both parties (bank and insurance company). Banks profit from expanding their
client portfolios and generating additional risk-free revenue above and beyond interest rates,
while insurance partners get access to a larger number of target consumers than they could
have reached on their own.

1.4 Features of Bancassurance

 Banks cannot pay premiums on behalf of their customers.

 Only two insurance companies can be used at one bank.

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  All fees are disclosed in the financial statements.

 Banks are always focused on banking.

 For insurance companies, a network of banks makes sense for sales.

 It is based on regular evaluation.

 Bancassurance improves profitability. It raises the customer's lifetime value.

 We can provide all financial facilities under one roof.

1.5 Types of Insurance Policy

Insurance is generally divided into two categories.

I. Life insurance

II. General Insurance or non-life insurance

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I. Life insurance:

The blessing of life insurance came with the help of British sources. The Indian Life
Insurance Corporation was first established in 1956. There are various insurance policies for
the life insurance business over the long term and for many years. The policies adopted cover
the risk of death caused by natural disasters. The insurance company must pay the premium
according to the conditions during the insurance period, and the insurance company must pay
the premium even if the risk of death or the age increases. Various types of insurance policies
are available and insurers are assigned taking into account their age and the time it takes for
the insurance policy to be signed with the company. Insurance companies must pay premiums
quarterly, semi-annually, monthly, yearly, or in one lump sum at the beginning or end.

II. Non-life insurance:

In 1972, non-life insurance was first nationalized, and non-life insurance products were
divided into various sections as shown below.

• Technical insurance

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• Local insurance

• Accident insurance

• Marine insurance

• Car insurance

•Fire insurance

• Health insurance

• Various insurance

Insurance features

There are various insurance-related functions, which are broadly divided into primary,
secondary, and other functions. Each is explained below. Five Main functions

• risk assessment

• Ensuring protection

• Take collective risk

• Provide security Secondary function

• Small capital investment to hedge greater risk

• Avoid losses

• Support for the development of large companies’ Other features

• Earn forex funds

• Tools for investment and savings

• Risk-free business

1.6 Global Scenario of Bancassurance

Bancassurance is a fast-growing concept that has evolved into a globally recognized and
well-recognized form that takes into account the country's economic background, laws and
demographics. Bancassurance is well established in many countries, including Europe, the
United States and Canada. The UK life insurance market is heavily influenced by brokers and
agencies, and the concept of bancassurance has led to a surge in the stock market. The

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Financial Services and Markets Act (FSMA) regulates and defines the role of commercial
agents in the open market. In some countries like Germany, the stock market has fallen, but
the market value is still entirely under the influence of distributors. On the European
continent, the concept of bancassurance has made great strides, but not in the United States
and Canada. Initially there was a dispute in the United States, but it is now nationalized
before the Glass-Steagall Act was abolished following the enactment of the Gram Bailly Act
in 1999. Most banks have benefited from financial regulations related to the sale of insurance
products at various point of sale in Latin America. Swiss banks were the first in Hong Kong
to introduce the concept of bancassurance, showing an increase in insurance-related products
by up to 240%. This continues in Japan and the Philippines. However, banks are allowed to
own a full insurance company in the Philippines. For Singapore, the concept is in the early
stages of development. There is tremendous market potential in developing countries
specifically India.

1.7 Bancassurance current Scenario in India

The status of current scenario is much designed and it supported by Narsimhan Committee I
and 11 which came into existence in 1991 and 1998. There are several banks which are
diverse in nature and offered attractive products to the customers who include merchant
booking, equity related marketing activities, finances related to real estate and financial
related terms etc. This led to further expansion of horizons which is considered as
development outcome and it is considered as favourable financial insurance that is most often
favoured by banks and their customers. Bancassurance is considered to highly benefit to
banks, insurance companies and also customers and it is considered to be unpredictable
currently which is influenced by market. To improve profitability, many banks use the
concept of bancassurance, which is a difficult task for banks to keep attracting customers
with their products. To overcome these problems, banks have begun to provide insurance for
all products that customers purchase from banks. For example, if a customer is given a
mortgage, the bank will cover the insurance policies that the customer may benefit from, and
the bank or insurance company will also benefit significantly from the product combination.

In India, the abstraction of bancassurance seems to be increasing rapidly both through office-
based agents and collective businesses in banks and benefit societies. Indian banks accept
large capacity for households. There are about 65,700 commercial bank branches. Each box
has a master key for 15,000 people. India's rural market has a huge pending market that is

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still starting with distribution companies. The rural area has 32,600 branches and 14,400
semi-urban branches. Regional allocation has become very dynamic. There are 196 rural
banks that are absolutely demarcated in restricted areas. This advice offers to worship the
friendliness and reception of ambitious customers. It also helps banks play a higher role in the
creation of benefits that include suffering and alimony.

For most insurance companies, bancassurance will provide what is considered the most
obvious benefit and the companies will cover the additional costs for the banks. Nearly
67,000 branches have a presence in India, limited to public sector banks and if all these
branches start selling insurance related products, revenue and profits will peak. However,
most companies are not interested in creating a clean market characterized by higher prices
and the concept of bancassurance will help insurers to sell their products at lower prices in
the market and attract customers. Because competition in the market is effective, the product
must be sold at a lower price to compete in the market.

Most businesses will benefit from selling their products at lower prices through an increased
number of customers. Banks will generally receive an additional income of between 13,000
crore and 20,000 crores, it is targeted over the next five years. Most of the insurance
companies, eg SBI, sell their products at 40% rate with the help of bancassurance concept
and also have great success in developed countries, especially in Europe. Banks contributed
up to 25% with the help of the banking distribution channels listed below. Life insurance
companies ICICI, HDFC, AVIVA, ING Vysya, Kotak. Most banks are aiming to cooperate
with foreign banks and insurance companies and the concept of bancassurance has been
developed by these companies. Companies include Cardiff France with SBI, J and K banks,
ICICI bank with prudent partners and Birla Sun Life Insurance and Met Life, and more. owns
a net worth of almost 500 crores and additionally 10% minimum to conduct operations with
the help of distribution channels. As there is an increase in linkages between banks and
insurance companies, this will lead to an increase in distribution channels. In the period 2003-
04, the bancassurance concept contributed almost 70% of the sales of Aviva India. At the end
of 2006, about 6% were paid into general insurance products and 13% into life insurance
products. In India, the market is huge by international standards. The models and techniques
invented by financial engineering in response to client requirements and rapid advances in the
field of information technology (IT) have led to competition and price increases in insurance
companies as well as in the banking sector. This led to the success of the bancassurance
concept, which brought profits to the company as well as the banks in India. Currently,

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Bancassurance is facing negative problems such as poor management, shrinking alarm centre,
no contact request, empty infrastructure, and no appeal to agents. and do not fully meet the
additional basic requirements. Therefore, credibility can become an application for the
correct implementation of bancassurance:

1. There should be a grasp of the senior management in the bank.

2. Banks need to enable and enhance staff capacity at the operational level

3. If there is a conflict of absorption between the broker and the insurance company. This
must be resolved.

4. Banks agree to establish a continuum of action by the Regulatory Authority with chiral
systems in the bank.

5. It is necessary to establish relevant service agreements between the broker and the
insurance company.

6. High basic investment in consulting, technology and telecommunications.

7. Study low, middle, and high affluent association groups and their willingness to accept
allocative behaviours and adapt to people-friendly behaviours.

8. Establish a research and development unit for an adaptation mission. With the opening of
the allowance fields and the addition of players to the allowance field, the allowance
companies agreed to appear with basement facilities suitable for people in good physical
condition, with services Acceptable alarms, solicitation logs and advice to communicate their
acceptable behaviour modification and missing compensation. plans. As a result, the success
of bancassurance depends on the benevolence of the insurer and vault in capturing the biggest
cases that occur and charging consumers a cumulative 200-plus consolidation agreement.

1.8 Types of Bancassurance

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Bancassurance is classified mainly into two types. They mainly include

I. Participation without risk

II. Participation with risk

I. Participation without risk

Banks will act as agents for insurance companies and profit in the form of referral income to
mobilize the insurance business. Profits from the sale of insurance products are transferred to
the insurance companies and the reference amount in turn will be transferred to the banks.
This process mainly involves three different types. These include

• Orientation method

• Products associated with Deposit and Advancement insurance

• Insurance products related to corporate agency

A. Orientation method

Banks will have very little role to play with this type of model. Banks can only offer their
premises while exchanging commissions with insurance companies and employees will
benefit from assisting with product sales.

B. Products associated with Deposit and Advancement insurance

This model links directly with banks in the form of deposits or credit products. Customers
benefit from the added value of the product, which helps the bank to sell the product at a low
price by arranging low-cost deposits to secure their loan.

C. Insurance products related to corporate agency

This model represents corporate agents who are banks that will grant credit or deposit
products in accordance with guidelines issued by IRDA. Selected employees benefit from
training services structured by IRDA and are designated as insurance agents to sell insurance-
related products.

II. Participation with risk

The bank's subsidiaries will act as distribution channels in the sale of insurance products and
they are controlled by the banks that hold the shares and the banks will reap huge profits, but
high-risk factor because the bank will be fully responsible for any reported loss. Several

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guidelines issued by the Reserve Bank of India (RBI) have required subsidiaries to engage in
bancassurance related activities.

1.9 Need of Bancassurance

The following factors have contributed to the expansion of Bancassurance as a distribution

channel:

Conducive environment: The progressive repeal of laws prohibiting banks from conducting
insurance businesses, the increased use of electronic channels and automation, the growing
demand for private retirement plans to supplement public pensions, the concern for providing
total financial services to customers, and other factors have paved the way for Bancassurance.

Cost effectiveness: Insurers consider Bancassurance to be a more cost-effective alternative to

expensive agency services. It is estimated that distribution accounts for 50% of an insurer's
cost structure, either directly or indirectly.

Fee-based revenue: A bank hopes to boost its fee-based income and overall productivity by
utilising its branch network, brand image, and client base, and marketing itself as a one-stop
shop with value-added services for its clients, therefore enhancing customer loyalty and
retention. Bancassurance enables a bank to meet its clients' risk protection needs without
taking on underwriting risk.

Fund Management: Life insurance is a savings market (the premium is approximately 55%
of the insurance premium globally). It is one of the ways used to raise bank deposits. Both
life and non-life insurance businesses give extra float money to banks, in addition to fee-
based revenue, via the same distribution channel and with the same individuals.

Efficiency and Innovation: Increased convergence of banking and insurance would result in
a blending of their corporate cultures, skills, and synergising/innovating financial service
marketing.

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1.10 Models of Bancassurance

Full Integration Concept: Joint Venture Model:

In this model, banking and
insurance services are fully The bank engages in
integrated. The bank product and distribution
provides insurance products design under the joint
under its brand as a supplier venture model. For
of financial solutions that infrastructure usage, there
meet the demands of its is cooperative decision-
customers. The bank has making and strong system
influence over sales and integration.
insurance service standards,
including claims handling.
As a result of this structure,
the Bank has an extra
primary operation that is
essentially identical to that
of an insurance company.

Strategic Alliance Model: Financial Service Group:

This model involves a This group houses all
partnership between a bank financial services under
and an insurance firm. The one roof.
bank solely sells the
insurance company's goods.
The bank performs no
further insurance activities
outside promoting the
packages.

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0
1.11 Advantages of Bancassurance Model

1. Advantages to Customer

A. ONE-STOP SHOP FOR ALL FINANCIAL REQUIREMENTS

The benefit of bancassurance is just this:

a) Appropriate Product: It offers

end consumers a personalised insurance

solution.

b) Appropriate Time: They are already

at a location for their financial

requirements - their banks.

This enhances the entire client

experience. They are more inclined to

26 | P a g e
choose a full financial solution from their banks, ensuring the success of bancassurance.

B. FASTER APPLICATION AND POLICY PROCESSING

The bank already has client data and paperwork. This real-time information accessibility

ensures that turnaround times in application processing and claims administration The bank,
as the point of contact for consumers, handles renewals as well, making the procedure more
easier.

C. EASE OF RENEWALS

According to the EY poll, 52 percent of bank insurance clients are willing to renew their
contracts. In comparison, only 19 percent of insurance clients from non-bank channels were
prepared to renew. Tracking renewals is also much easier with new technology and data
access for the bancassurance channel.

D. TRUST

Customers believe that their banks will sell them the proper goods. They have a lower level
of trust in insurance companies and independent agents. As a result, they are more likely to
purchase insurance products from their banks.

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E. EXPERT ADVICE

Banks are sitting in a pile of customer data. This, along with the insurer's expertise in
packaging insurance products, helps Allianz propose the right products. Customers also
appreciate this expertise, primarily because of their trust in the bank.

F. CONVENEINCE

EY conducted a survey in 2017 of 1,400 retail banking customers in 7 Brazilian cities.

Convenience tops the list of reasons customers choose to buy insurance from their bank. This
is one of the main advantages of bancassurance. Personalized insurance products at reduced
prices (due to reduced operating costs) with expert support.

G. EASY ACCES TO CLAIMS

Again, rooted in trust is a belief in an easy claim process. This makes insurance through the
Banca channel attractive to many customers.

H. POLICY AND APPLICATION PROCESSING TIME IMPROVED

The bank already has customer data and documents. This access to real-time information
reduces turnaround times – in claims processing and claims management. This is one of the
great advantages of bancassurance for customers.

2. ADVANTAGE TO BANKS

A. DIVERSIFICATION OF CUSTOMER PORTFOLIO

Banks already have relationships with their

customers and sell a variety of monetary

products. Bancassurance adds insurance to

a bank's product mix, thereby diversifying

its customer portfolio and increasing market

28 | P a g e
penetration

B. NON-INTEREST FREE INCOME AND IMPROVED PROFITABILITY

The bancassurance model makes it easy for banks to

generate risk-free revenue in the form of insurance

company fees. Several studies have been conducted

in the context of Bancassurance in India to

demonstrate the positive impact on bank profitability.

After entering Bancassurance, SBI has improved

most of the components of the CAMEL model (except for the four indicators).

C. CUSTOMER LOYALTY AND RETENTION

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Banks enjoy the advantage of being able to offer additional products to their customers.
Providing integrated financial services strengthens customer relationships and improves
customer loyalty and retention.

D. USE OF EXISTING LOW-COST RESOURCES

Banks use existing facilities and employees (checkout and branch staff) to sell new insurance
products. This indicates that there are no additional operating costs associated with selling
insurance. We also leverage the insurer's expertise in banker training and insurance product
packaging. This reduces the distribution value of both insurance companies and banks and
improves the profitability of distribution channels.

E. INCREASED CUSTOMERS LIFETIME VALUE

The higher your loyalty and retention rate, the higher your CLV per customer. This can be a
very important indicator for banks.

F. SPECIALIZED TRAINING IN CASHIERS AND BRANCH STAFF

Bankers are often reluctant to take on the responsibility of selling insurance beyond their
usual duties. This is a big challenge in bancassurance implementation. Banks solve this
problem by enlisting the help of insurance companies to design attractive incentive plans and
provide specialized training for them. As a result, banks will be able to keep their employees
motivated, while helping them develop their skills.

3. ADVANTAGES TO THE INSURANCE COMPANIES

A. PIGGY BACKING ON BANKS’ HIGHMARKET PENETRATION RATE

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On their own, it will not be possible for insurance companies to achieve the same level of
market coverage as banks. Banks have extensive distribution networks, especially in India,
with thousands of commercial bank branches. Hence, penetration is the main benefit that
insurers derive from bancassurance alliance.

B. CUSTOMER ENGAGEMENT AND RELEVANT OFFER GENERATION

Banks have a huge amount of data about their customers. This includes demographic and
financial information, transaction information, spending habits, credit history (ability to
invest and purchase) and more. Operators and banks can use this information to create smart
workflows and customize relevant premiums.

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C. INCREASED PREMIUM TURNOVER

With increasing market penetration, insurers are

boosted by increasing premium revenue as well as gain by using bank insurance. For
example, the partnership of maximum life with the axis bank accounting for 55% of his
income after axis bank Acquired its shares.

D. REDUCE COST AND INCREASE OPERATION EFFICIENCY

In some bancassurance delivery models, bankers are always on hand, closing deals and
making concessions. As a result, the channel has a much wider reach with a much smaller
investment. A similar reach through traditional channels would require them to hire several
hundred agents in different parts of the country. Through Bancassurance, market penetration
can also be achieved in a much shorter time than through the agency channel.

E. TURNAROUND TIME IMPROVEMENT

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Bankers at the forefront, data access ensures low lead time (high responsiveness). This is
important because responsiveness is considered by most customers to be a very important
factor in purchasing insurance.

F. INFORMATION ABOUT NEW INSURANCE PRODUCTS COMING SOON

By learning from the successes/failures of their existing insurance practices, insurers can
launch new products that are more likely to succeed. This is made possible by the bank
having access to the data on the covers that generate the most interest in specific customer
segments.

G. CUSTOMER TRUST THROUGH EXISTING BANKING RELATIONSHIPS

Banks have built the trust of customers. Using bancassurance as the locomotive, insurers use
this trust to increase their coverage, penetration, and premiums.

1.12 Disadvantages of bancassurance

 Managing data about an individual customer's identity and contact details may result
in the insurer using the details to market its products, thereby compromising data
security. Whether.

 There is a potential for a conflict of interest between the bank's other products and
insurance policies (such as reimbursement policies). This can leave customers
confused as to where to invest.

 A better approach and services that banks offer to customers is more of a hope than a
fact. Indeed, many banks in India are known for poor customer service and this fact is
compounded when they are tasked with selling insurance products. The nature of
marketing insurance products requires an attitude of submission, which many banks in
India are required to do.

 Bancassurance requires banks and insurance companies to work together; However,

merging the businesses of the two fields is not easy.

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  In bancassurance, insurance companies do not have direct control over the sale of
their products. Marketing strategies can be more difficult to manage Insurance
businesses, for example, may find it difficult to target the correct clients. For banks,
their staff needs to be familiar with insurance products, which requires a greater
workload and training. In the case of multiple bancassurance arrangements, the bank
advisors may have conflicting incentives. They may recommend one product over
another because of personal preference. It is also difficult to determine who is liable
in the event of a dispute with a customer.
 To solve the problems, banks and insurance companies need to align their goals. In
addition, insurance companies can provide sales training to bankers. This helps to
achieve common goals and reduce miscommunication.

1.13 Bancassurance in SBI

State Bank Group SBI LIFE HAPPY CUSTOMERS

Bancassurance means a partnership or relationship between a bank and an insurer, which sells
insurance products using the bank's distribution channels.

The model, developed in France in 1980, has been successful in European countries such as
Spain, France, Belgium and Italy, accounting for about 5060% of premiums.

Basically, this includes selling insurance products through the bank's sales channels.

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SBI-ASSOCIATE BANKS SBI SUBSIDIARIES

SBI
SBBJ Mutual
Fund
SBI SBI
SBO SBM Cap Card
P SBI SBI

SBT SBH SBI SBI

Life Securities

SBI Structure pertaining to Bancassurance Channel

CHAIRMAN SBG

MD (NBG) MD (A&S)

CGM CIRCLE MD ASSOCIATE

BANK

GM NETWORK
CGM

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 DGM ZONE
GM NETWORK

AGM REGION
DGM ZONE

BRANCH AGM ZONE

MANAGER

BRANCH
MANAGER

1.14 SBI-Life Bancassurance Sales Structure

Regional Director

Regional Manager

Sr.Area
Manager 36 | P a g e
 Manager

BDM Group

1.15 SBI GEOGRAPHICAL SPREAD

NBG A&S

SBI ABs

14 Circles 5 Banks

38 Networks 26 Networks

80 Zones 73 Zones

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15,888 Branches 6352 Branches

1.16 SBI LIFE INSURANCE PRODUCTS
A. SBI AROGYA SHIELD

Features

 Health and Purity Life insurance under a single plan

 Affordability of premiums

 Under health insurance coverage, there are sum insured options of Rs 100,000, Rs
200,000, and Rs 300,000

 Sum assured ranging from Rs 5,000 to Rs 25,000 under life insurance cover

 Health insurance cashless claims

 Take advantage of tax breaks on life insurance premiums paid under section 80C of
the Income Tax Act of 1961 and on proceeds paid under section 10 (10D) of the
Income Tax Act of 1961, where applicable.

 Take advantage of tax breaks under Section 80D of the Income Tax Act of 1961 while
paying for health insurance premiums.

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  141-day care procedures are covered by health insurance.

PLAN BENEFITS

• Combination products

This product provides dual protection for health insurance and life insurance

Health insurance provides you and your family with comprehensive protection for
emergency medical care and covers hospital costs. That is Rs. Offers 100,000 insurance
amount options. Rs. 200,000 and Rs. 300,000.

Life insurance coverage ensures that your family is financially protected in the event of an
unfortunate event. That is Rs. Rs from 5,00,000. We offer options for insurance amounts up
to 25,00,000.

• Affordable

The premium paid for this product is affordable. The health insurance premium payment
method is a single premium and can be renewed annually. For life insurance, term life
insurance premiums are paid annually throughout the life of the insurance policy. This
combination product also offers a 5% premium discount on both life and health insurance.

• Health insurance coverage

This plan's medical insurance covers the costs of various hospitals.

cover:

Pre-hospitalization costs can take up to 60 days per admission

Post-hospital costs can take up to 90 days for each approved hospitalization

141-day care procedure

Hospitalization at home

Outpatient treatment

• Life insurance-based death benefits:

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If the insured dies during the insurance period after the end of the waiting period, or due to an
accident during the waiting period, the beneficiary / beneficiary will receive death insurance
as a lump sum.

B. SBI LIFE SARAL BIMA YOJNA

Feature

Keep your family safe with affordable standard term life insurance

Easy to understand with general terms of use

It is convenient to pay the premium once on a regular or limited period (5/10 years).

Tax incentives * in accordance with applicable standards of the Income Tax Act of 1961.

Advantage

 Simplicity

 The product has standard terms that are easy to understand

 Affordable

 Take advantage of protection plans at an affordable price

 safety

 Financial security for you and your loved ones is fine

 Flexibility

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  Pay a single premium on a regular basis (annual in policy) or for a limited period
(5/10 years)

Plan Benefits: -

Death benefit:

If the insured dies during the insurance period after the end of the waiting period, or if an
accident occurs during the waiting period, the beneficiary / beneficiary will receive the death
benefit in a lump sum.

For regular and limited premium payment policies, it's the best

A. 10 times annual premium

B. 105% of all premiums paid on the day of death

C. Absolute insurance amount paid at the time of death +

Higher for single premium policy

A. 125% of single premium

B. Absolute insurance amount + payment at the time of death

If the insured dies in another accident, the beneficiary / beneficiary will receive, where
applicable, a death benefit equivalent to 100% of all premiums paid, excluding taxes, during
the waiting period

Survival benefits:

This plan does not provide any survival benefits.

Runtime benefits:

There is no expiration benefit for this plan.

Driver benefits:

There are no driver benefits available with this product.

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C. SBI LIFE- SAMPOORNA CANCER SURAKSHA

FEATURE

 Payment independent of actual costs

 Monthly income benefit option

 Medical second opinion

 No health checks

 Choice of three power structures

 Benefits of Total Assured Reset

 Built-in premium exemption

ADVANTAGE

Simplicity

Simple and hassle-free publishing process

Billing payments are independent of the type / amount of expenses incurred

Flexibility

Make up for loss of income with monthly income supplement

Safety

Ensure your financial safety with a gradual lump sum payment

Reliability

Get a second medical opinion from a panel of medical professionals

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Affordable

Perfectly fits your financial plan with a reasonable premium

D. SBI LIFE GRAMEEN BIMA

Feature

 Life insurance with one-time payment

 Simple registration procedure without health check

 Choose from a range of rewards that are multiples of 100

Advantage

 safety

43 | P a g e
  Protect your family's financial safety

 Affordable

 Benefits of nominal premium

Death benefit:

If the insured's life unfortunately dies during the insurance period, the insured or legal heir
will receive a death benefit as a lump sum. If the insurance amount in case of death is higher
than the basic insurance amount, or if it is 1.25 times the single premium

Runtime benefits:

This product has no run-time benefits.

Transfer performance:

Returns are allowed after the end of the first insurance year. No cancellation allowance will
be paid in the last year's insurance year. The amount of surrender paid is:

Individual insurance premiums (excluding applicable taxes) * 50% * Indefinite contract

period / total period

From where:

1) The period is measured in the month of completion.

2) The remaining period is the total period (monthly) of the insurance contract minus the
number of months completed on the cancellation date. Simplicity

Simple registration based on the Health Declaration

E. SBI LIFE- PRADHAN MANTRI JEEVAN JYOTI BIMA YOJNA

Feature

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  Protect your family's financial safety

 Simplified application for registration

 Coverage from Rs.2lakh at a reasonable price

Advantage

 Protect your family from financial difficulties

 Fast registration and quick processing

 No health check required; acceptance based on satisfactory health declaration of

informed consent form

 Get Rs.2 Lakh cover with a little premium

Termination / Surrender Benefits:

There are no expiration dates or cancellation benefits with this plan.

Register:

The participating bank / post office may be the primary insurer.

Coverage begins on June 1st or the day the insured joins the scheme and continues until May
31st of each subsequent year.

Benefits will be deducted from the account holder's bank / postal account via the "Auto
Debit" feature at a rate based on the options selected during enrolment in the program.

You can then renew your insurance coverage on June 1st of each year by deducting your
premium from your individually designated bank / postal account. This award is subject to
change at any time at the request of the Government of India.

If the member wishes to join after June 1, please pay the full annual membership fee /
apportionment fee according to the month of joining and submit the necessary documents /

45 | P a g e
declaration (if any) according to the schema rules. Registration rules are determined from
time to time by the Government of India.

The insurance is valid for one year from June 1st to May 31st of the following year, and the
option of enrolment / payment by direct debit from the personal bank / postal account stated
on the prescribed form until June is available. I have. The 31st. You must specify the year in
May each year. Year-round incentives are paid at the time of program renewal and
proportionally distributed payments are not allowed. If a member has multiple banks / postal
accounts at one or more banks / post offices, the individual is only eligible to participate in
the program from one bank / postal account. Aadhaar is the leading KYC for bank / postal
accounts.

Exclusion:

New members who join the system are not subject to death (other than accidental) and death
(other than death) that occurred in the first 30 days from the date of joining the system
(responsibility period). Coincidentally) Claims are excluded during the deposit period.

F. SBI LIFE-CAPASSURE GOLD

Features

Professional and experienced investment management for employee benefit plans

As a single point of contact, a dedicated service staff is available.

A wide number of scheme rules are available, including Defined Benefits, Defined
Contributions, and Hybrid.

Various premium payment frequencies

46 | P a g e
Advantages

 Security

 Consistent returns on your investments

 Reliability

 Services tailored to your operating requirements

 Flexibility

 Premium payments can be made at your leisure.

Advantages of the Scheme

Benefits will be paid in the case of a member's death, retirement, resignation, withdrawal, or
any other exit as defined by the plan regulations. In the case of post-retirement medical
benefit plans, medical payments are payable to retirees upon the occurrence of the specific
event as stipulated by the scheme regulations. Such benefits will be paid from the master
policyholder's or member's policy account, as applicable, subject to the availability of money
in the policy account.

Insurance Advantage

In the case of the member's death, the sum promised will be paid to the nominee named by
the master policyholder. Gratuity, Leave Encashment, Superannuation, Post-Retirement
Medical Benefit Scheme (PRMBS), and Other Savings Schemes all require insurance
coverage. SBI Life will be responsible for such rewards.

1.17 SBI GENERAL INSURANCE PRODUCTS

A. HOME INSURANCE- BHARAT GRIHA RAKSHA

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KEY FEATURE

 Policy terms range from one to ten years.

 Coverage for building (structure) and/ or contents
 Household belongings are immediately covered at a rate of 20% of the house's Sum
Insured (subject to maximum of Rs 10 lacs)
 Flexible options for coverage of home contents
 Optional covers available for valuable contents
 Optional protect personal accident of Rs 5 lakh each for self and spouse (arising out
of fire and allied perils)
 Inbuilt protect fee payable to architect/ surveyor/consulting engineer (5% of claim
amount)
 Inbuilt protect removal of debris (2% of claim amount)
 Inbuilt protect loss of rent/ rent for alternative accommodation
 Auto-escalation of sum insured by 10% for annual policies and for future policies
 The property and belongings are covered on a reinstatement/replacement value basis.
 Valuable contents insured on agreed value basis
 Underinsurance isn't applicable
 No deductible applicable

48 | P a g e
COVERAGE

Bharat Griha Raksha insures you against the following:

 Fire

 Explosion or Implosion

 Lightning

 Earthquake

 Typhoon, hurricane, storm, tempest, cyclone, tornado, tsunami, flood, and inundation
are all examples of natural disasters.

 Subsidence of the terrain on which your house is built, landslide, and rockslide

 Forest fire, bush fire, jungle fire

 Impact damage of any kind, i.e. damage caused by impact of, or collision caused by,
any external object (e.g. vehicle, falling trees, aircraft, wall etc.)

 Missile testing operations

 Riot, strike, malicious damages

 Acts of terrorism

 Water tanks, equipment, and pipes bursting or spilling

 Leakage from automatic sprinkler installations.

 Theft occurring within 7 days of the occurrence of and directly caused by any of the
above-mentioned insured occurrences

49 | P a g e
MAJOR EXCLUSION

 Wilful or intentional act or omission

 War, invasion, act of foreign enemy

 Ionising radiation or contamination by radioactivity

 Pollution or contamination

 Short circuiting, arcing, self-heating, or electrical discharge from any source

(lightning included)

 Earnings loss, delay loss, and consequential damages

 Reduction in market price

 Costs, fees, expenses for preparing any claim

C. Travel Insurance- SBI (Business and Holiday)

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CHARACTERISTICS

Coverage of up to $500,000

Complete Protection

24/7 Global Protection and Assistance

Simple Claims Settlement\s

COVERAGE

Our travel insurance policy includes the following coverage:

Treatment while on vacation

Injuries or illnesses encountered when travelling

Assistance with travel

Advance payment

Delays in travel

INSURANCE COVERAGE PERIOD

Single Trip: A policy is provided for a minimum of one day and a maximum of 180 days.

Multi-Trip: The policy is only valid for one year and cannot be extended or shortened.

Significant Exclusion

Travel for the sole aim of receiving medical treatment

Suicide, alcoholism, drug addiction, and other causes of injury or death

If you are involved in military, naval, or air force activities,

C. MOTOR INSURANCE

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CHARACTERISTICS

 Compulsory Third Party Liability in the event of a personal injury

 Additional premiums for multiple covers:

 NCB

 Replacement of a Key

 Loss of Belongings in a Bi-fuel Kit

 Legal responsibilities for paid drivers and workers

 There is no depreciation.

 Invoice Return

COVERAGE

We provide automobile insurance for private cars in the following situations:

52 | P a g e
  Compulsory Third Party Liability in the event of personal injury/death or damage to a
third party's property.

 Automobile loss or damage as a result of:

 Fire

 Explosion

 Self-ignition

 Accidental harm

 Your vehicle is protected from natural calamities such as lightning, earthquakes,

hurricanes, cyclones, landslides, and so on.

 Individual owners have personal accident coverage of up to Rs 15 lakh when driving.

 Passengers can also earn up to Rs 2 lakh in coverage per person.

 CNG/LPG bi-fuel kit coverage.

SIGNIFICANT EXCLUSION

SBI do not provide coverage for damage, theft, or loss caused by occurrences such as war,
invasion, foreign enemy acts, mutiny, insurrection, and so on. Any claims must be proven to
be the result of an act unrelated to any of these criteria.

Driving without a valid driver's licence.

Driving when impaired by drugs or alcohol

D. Personal Accident Insurance – Saral Suraksha Bima

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NOTABLE CHARACTERISTIC
Saral Suraksha Bima is intended to address the following topics:
 Death as a result of an insured's accident

 Permanent total disablement and permanent partial disablement insurance gives a set
sum and protects against medical bills.

 Individuals between the ages of 18 and 70

 Family members include oneself, one's spouse, dependent children, and one's parents
or parents-in-law.

 Dependent children ranging in age from 3 months to 25 years

 Optional coverings include:

Temporary complete disability
Accident-related hospitalisation costs
Education provides a 5% cumulative bonus for each claim-free year up to a maximum
of 50% of the Sum Insured.

BASE COVER COVERAGE

 Unintentional Death

 Permanent Total Disability

 Permanent Partial Disability

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  Optional Protection

EXCLUSION
Restrictions specific to each area shall take precedence over the broader exclusions listed
below: The Company will not be held accountable for
Any claim arising directly or indirectly from war and warlike occurrences or invasions, acts
of foreign foes, etc., as well as all types of detention
Any claim for death or disability caused by suicide, deliberate self-injury unless done in self-
defence or to preserve a life, suicide or attempted suicide
Any damage caused by the insured's actual or attempted conduct of, or intentional
involvement in, an unlawful act, or any violation or attempted violation of the law.
Any claim resulting or originating from, or any subsequent loss caused or arising from,
ionising radiation or radioactivity pollution from any nuclear fuel, nuclear weapons material,
radioactive, poisonous, explosive, etc.
Any claim for death or hospitalisation of an insured individual as a result of professional
engagement in hazardous or adventure sports, such as para-jumping, rock climbing,
mountaineering, rafting, auto racing, horse racing, or scuba diving, hand gliding, sky diving,
or deep-sea diving.

E. SBI GENERAL BHARAT SOOKSHMA UDYAM SURAKSHA POLICY

THE MOST IMPORTANT FACTOR

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This insurance covers the property if the total asset worth at one place does not exceed Rs 5
crore at the time the policy is issued.
 policy on named perils

 Waiver of up to 15% of underinsurance

 Stocks have a built-in floater cover.

 Building, plant and machinery, and furniture fittings are covered on a replacement
cost basis.

 Inbuilt coverage for earthquakes, terrorist acts, rubble clean-up, professional

expenses, and so on.

 If equities are to be covered on a declaration basis, add-on coverage is available.

COVERAGE
This coverage protects your business's building structures, plant and machinery, stock, and
other assets from the following perils:
 Fire, whether caused by its own fermentation, natural heating, or spontaneous
combustion

 Implosion or explosion

 Lightning

 Earthquake, volcanic eruption, or other natural upheavals

 Storm, cyclone, typhoon, tempest, hurricane, tornado, tsunami, flood, and inundation
are all examples of natural disasters.

 Subsidence of the terrain on which your business is built, landslide, and rockslide

 Fires in the bush, the forest, and the jungle

 Any type of impact damage, i.e. harm produced by an external physical asset's hit or
contact (e.g. vehicle, falling trees, aircraft, wall etc.)

 Missile tests are being conducted.

 Rioting, strikes, and malicious damage

 Terrorist acts

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  Water tanks, equipment, and pipes bursting or spilling

 Automatic sprinkler installation leakage

 Theft occurring within 7 days of, and proximately caused by, any of the
aforementioned covered occurrences
Other built-in covers:

 Additions, changes, or extensions

 Floating-rate stocks

 Stocks are being removed temporarily.

 Specific content protection

 Start-up costs

 Professional charges

 Cost of debris removal

 Municipal restrictions impose costs.

EXCLUSION
 Act that is deliberate, willful, or intentional

 Stock loss, destruction, or damage caused by temperature changes in cold storage

 Invasion, war, and war-like operations

 Radiation that is ionising

 Contamination or pollution

 Property has gone missing or has been misplaced.

 Indirect or consequential loss or harm

 Costs, fees, or costs incurred in preparing a claim

 For more than 30 days, the insured premises or structure is empty.

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1.18 Bancassurance Emerging trends and Strategic challenges
A recent Sigma research found that bancassurance is on the increase, especially in the
developing nations.

Insurers have efficiently used bancassurance to create a stronghold in regions with low
insurance coverage across the world.

The supply of insurance services via banks, known as bancassurance, is a well-established

and increasing route for insurance distribution, however its prevalence varies by market.
Europe has the highest rate of penetration of bancassurance. In North America, however,
acceptance is smaller, owing in part to legal constraints. However, in Asia, bancassurance is
gaining popularity, notably in China, where regulations have been relaxed. According to the
findings, social and cultural elements, as well as regulatory concerns and product complexity,
all play a considerable impact in determining how successful a bank is in a given region.

The future for bancassurance is still favourable. While individual market development will
continue to be highly influenced by each country's legislative and corporate climate,
bancassurers may benefit from governments' desire to privatise health care and pension
responsibilities. In emerging markets, new entrants have used bancassurance to effectively
compete with incumbents. Given the present low penetration of bancassurance in emerging
nations, bancassurance is expected to grow significantly in the future years.

Emergence Trends

Though bancassurance has historically targeted the mainstream market, bancassurers have
begun to finely segment the market, resulting in products that are tailored to each category.
The pursuit of extra expansion, as well as the need to advertise to specific customer
categories, has pushed several bancassurers to abandon a standardised, single channel sales
approach in favour of a multiple channel distribution plan. Some bancassurers are also
concentrating only on distribution.

In some markets, face-to-face communication is desired, which favours the growth of

bancassurance. Nonetheless, banks are beginning to use direct marketing and Internet
banking to promote insurance products. Because of the concrete cost savings implicit in
product price or the allure of convenience and innovation, existing and growing channels are
becoming fiercely intense.

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Finally, in certain countries, the marketing of more sophisticated goods has gained traction,
as has a more devoted focus on specialist customer categories and the sale of non-life
products. The desire for product diversity develops as bancassurers recognise that over-
reliance on specific goods may result in excessive volatility in business profitability.
Nonetheless, bancassurers have demonstrated a readiness to broaden their product offerings
beyond those associated with bank products.

Strategic Challenges

These advances are projected to put conventional bancassurers under pressure in the
following ways:

1. The transition from production to pure distribution necessitates banks better aligning
the motivations of various suppliers with their own.
2. Increasing non-life product sales, to the degree that such risks are kept by banks,
necessitates complex products and risk management.
3. Non-life product sales should be balanced against the increased cost of servicing those
policies.
4. Banks must brace themselves for potential interruptions in client interactions as non-
life insurance claims become more common.

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 CHAPTER NO.2:

RESEARCH METHODOLOGY

2.1 Objectives of the study

The following aims are taken into account in this study:

1. To investigate the experiences of consumers who have used State Bank of India's life-
insurance services in the research region.

2. To learn about the attitudes of consumers who use State Bank of India's life insurance
services in Kalyan

3. To assess the degree of satisfaction of Bancassurance clients of State Bank of India in

Kalyan.

4. To study the awareness level of customers regarding banks selling insurance products.

5. To study the factors affecting buying behaviour of customers in purchasing the insurance
policies through the banks

6. To compare the type of policies customers purchase from the banks.

7. To compare the satisfaction level of customers purchasing insurance policies through

banks in different cities

8. To analyse the future buying pattern of the customers for insurance policies

2.2 Hypothesis
H0:  The services of SBI Bank is not the key factor in choosing insurance from the Bank
H1:  The services of SBI Bank is the key factor in choosing insurance from the Bank
H0: The documentation of SBI is not tedious

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H1: The documentation of SBI is tedious

2.3 Scope of the Study

It is now evident that as the economy expands, it not only involves a bigger and more active
financial sector, but also the supply of increasingly complex and diverse financial and
banking goods and services. With financial reforms, India's financial sector has become
livelier, since it is regarded one of the fastest developing economies among emerging market
nations. Indeed, in recent years, it has been hypothesised that 'global economic development'
is increasingly dependent on the growth prospects of rising economies such as China and
India. Significantly, the Indian economy has grown at an average pace of more than 8.5
percent during the previous four years, with macroeconomic and financial stability (RBI,
2006), and signs are that it would develop at an even faster rate in the near future if the
monsoon is strong.
Experience has also shown that economic progress has greatly encouraged the rise of the
middle-income class in most Asian countries, and now it is India's turn. Experience shows
that the banking system meets the major financial demands of the economy during its first
growth stage, and that as the economy progresses to higher levels, the need for various non-
banking financial products such as insurance, derivatives, and so on becomes more acute.
Furthermore, because India currently has over 200 million middle-class citizens and a big
banking network with the greatest depositor base, there is more room for bancassurance use.
For example, as of the end of March 2005, there were over 466 lakh bank accounts with
scheduled commercial banks. Simply put, bancassurance has promised to combine insurance
firms' competitive edge in "manufacturing" of insurance products with banks' competitive
edge in distribution, via their enormous retail networks.
The possibilities for bancassurance in India are quite promising for the following reasons:
The Indian economy is expanding at a 9% annual rate.
 PPP expansion (purchasing power parity).
 Huge FDI infusion.
 Middle-class Indians are becoming more numerous.
 Large financial infrastructure in urban, semi-urban, and rural India.
 BASEL NORM-II (2009).
In 2007, India had 88 scheduled commercial banks (SCBs): 28 public sector banks (with the
government of India owning an interest), 29 private banks (with no government stake; they

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may be publicly listed and traded on stock markets), and 31 foreign banks. They have a
combined network of about 53,000 branches and reach across the nation's metropolitan, semi-
urban, and rural areas.
In India, there are 70324 bank branches, and each branch serves around 16000 people. It has
a massive banking infrastructure and one of the greatest banking networks on the planet. If
approached and handled correctly, bancassurance may be a major boon for all players,
including banks, insurers, and clients.

2.4 Need of Study

The study was necessary to understand the changing trends in bancassurance market. To learn
about different policies provided by SBI and how it is competing against top most insurance
companies in current scenario and whether the services are turning efficient for common
public.

2.5 Limitations of the study

Even though the study can be useful in various form of ways both for bank employees and
HR it still has limitations.

1. The sample size can be broader and can target a larger audience

2. Respondents can be dishonest and might not give proper information.

3. With the restricted amount of time the research might ignore various aspects that may be
important.

4. In the present study, only the insurance services supplied by the SBI will be investigated
and insurance company specific services will not be included.

5. The present analysis analyses those consumers who have acquired Insurance Policy from
State Bank of India. As a result, the findings cannot be applied to other insurance firms'
Bancassurance channels.

6. The survey was done in Kalyan city of Maharashtra. As a result, the study's findings
cannot be applied to other geographical regions.

2.6 Sample Size

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Study area: The research is conducted for the people residing in Kalyan city only and not
any other respondents. The research is strictly meant to analysed the perspective of the people
that are residing in Kalyan to understand their experience and satisfaction towards
Bancassurance and their awareness level relating to insurance products of SBI

Sample size: To analyse we needed specific number of respondents who can provide us with
necessary information to interpret. The Project will be covering about 100 respondents that
are residing in Kalyan. A total number of 100 respondents can be considered as a good
number enough to help with our research.

Sampling technique: The questionnaire method will be used with essential questions that
will put the research in the right direction. About 10 important questions have been made that
the respondents have to reply to with few being multiple choice and few being open ended
questions as well.

2.7 Data collection

The data will be collected through google forms and will be sent to residents of Kalyan city
that can give information for the research. The questionnaire will be sent through mails or
through any other social media applications. The data collected will be further analysed and
then interpreted which will help us to conclude our research. If necessary, the research can
also use secondary data if data collected is not enough to pass any judgments. The secondary
data can be research of other researchers that conducted research on same topic and was able
to give a good feedback on the response he has received.

The study which is being carried out is basically depending on the two major important
statistical sources which are mentioned below: -
1. Primary Data
The data which have been used in this research that is both primary as well as secondary data
which are perfectly being used to fulfil the objectives and for providing hypothesis. The
primary data that has been collected till now has been done by using the questionnaire
method which is being asked to people of various age groups from adults to older men and
women having experience in bancassurance.

2. Secondary Data
The secondary data that has been used in this research is mentioned below in pointers

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1. Internet source
2. Official documents source
3. Data gathered from various articles

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 CHAPTER III:
LITERATURE REVIEW

Fan et al. (2011)

The aim of cross-buying insurance in banks was investigated, as well as the variables
influencing them.

Verhoefa et al. (2001)

payment equity has a detrimental impact on cross-buying for customers with lengthy
connections Customers are more likely to cross-purchase if the supplier's pricing are seen to
be more reasonable than the competitor's prices.

Konstantinos et al. (2004)

In their study, they discovered that customer knowledge of banks' providing of insurance
goods is poor, despite their strong propensity to utilise banks as insurance product providers.

Boon et al. (2012)

In Malaysia, researchers discovered that user approval of bancassurance has a positive

significant relationship with parameters such as relative advantage, trial ability, and observe
ability.

Delport et al (2011)

The study focused on nine major factors that should be considered when measuring banking
and life insurance customers' relationship intentions: continuing involvement, fear of
relationship loss, fear of switching to competitors, forgiveness, feedback response, feedback
for improved service delivery, expectations, feedback to avoid conflict, and initial
involvement.

Nixon (1935)

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discovered that the insurance market is fertile the general public is interested in insurance and
has a good attitude about it. They couldn't afford it because of their low wages, despite the
fact that they felt they needed extra insurance.

Chui-Cheng (1999)

performed a study on consumers' perceptions of bancassurance and discovered that insurance

agents score adversely on dependability and bancassurance scores negatively on empathy
with clients.

Kumaraswamy (2012)

Customers positively evaluate the bancassurance endeavour, which offers several benefits
such as improved service quality, financial planning assistance, credibility, openness in
dealing, convenience of renewals, and electronic banking.

Popli and Rao (2009)

The study looked at Indian retail consumers' knowledge of banks marketing insurance
products and their desire to acquire insurance from their local banks.

Kumari (2012)

According to her research, clients trust banks while purchasing insurance goods.

Sinha (2005)

underlined the value of banks as "Trusted Brands"

Morgan (1994)

underlined the need of creating integration as a vital component of the customer's experience
with bancassurance

Berghe et al. (1999)

According to their findings, clients have a positive experience with insurance services
provided by banks since banks have established a strong customer focus, resulting in simpler
and more transparent solutions suited for big customers.

Cotham et al. (2008)

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From the perspective of the consumer, investigate the situation of bancassurance in Asia
(China and India). According to the findings of their research, there is substantial space for
improvement in Asia's whole bancassurance sales process. Overall, the client experience is
not pleasant.

Verhoefa et al. (2001)

The effect of satisfaction varied across clients with long and short relationships, according to
a research of Dutch insurance underwriters.

Hung (2003)

discovered that service quality has a positive influence on customer satisfaction, that
customer satisfaction has a positive impact on customer purchase intentions, and that
consumers of both public and private banks had substantial differences in service quality and
customer contentment.

Chung-Ming Lu (2006)

The satisfaction level of bank clients with the bank's insurance product was investigated. The
study discovered that male gender satisfaction levels for bancassurance product feedback
were lower than female gender satisfaction levels, and there was a significant difference in
satisfaction levels among respondents over 50 years old. Only married respondents had
purchased bancassurance products, and they were pleased with the advice they received in
selecting a better plan, product features, and premium rate. Late fee charges, premium
receipts, policy terms, policy coverage years, underwriting, and the NAV price of a
bancassurance product were all rated as neutral by respondents. The bancassurance product
has been proven to be supported by business occupants.

Banudevi (2013)

has discovered that there is a positive relationship between service quality and service value,
a positive relationship between service quality and satisfaction, a positive relationship
between service value and satisfaction, a positive relationship between satisfaction and
intention, a positive relationship between satisfaction and intention, a non-positive
relationship between service quality and intention, and a non-positive relationship between

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service value and intention. Customer satisfaction in bancassurance is influenced by human
service quality, product needs, and enterprise service.

Fried (2011)

The reason for effective bancassurance was investigated, and it was discovered that a
growing middle class consumer with an expanding demand for protection, the bank's
goodwill, and the bank's accessibility to a wide variety of clients all contribute to this success.
Furthermore, providing insurance is a value-added service that helps the bank satisfy
customer expectations while also providing an additional source of revenue.

Krstic et al. (2011)

According to the study of Krstic et al. (2011), conditions necessary for successful
implementation of bancassurance in Serbia are higher living standards of the community;
increased awareness and altered economic culture of citizens; legal authorization of tax
incentives to buyers of life insurance policies; top-quality education and continuous trainings;
and motivating factor, in the form of incentives and concessions over the regular salary for
banking.

Moore and Moore (1995)

It has been suggested that the degree to which a firm's image fits customer expectations has a
significant impact on repeat business and corporate performance. It is also stated that,
regardless of loss or level of uninsured coverage, satisfaction with insurance company
treatment can be predicted by the speed with which the company responded, whether a
settlement was deemed fair, how many adjustors or company representatives the policyholder
had to deal with, and how well informed clients were about their coverage prior to the
disaster.

Josa (2005)

Firm risk, company size, cost reductions, revenue gains, the size of the national banking
sector, the extent of deregulation in the nation, fluctuations in gross national income, and
shifts in inflationary rates are all key factors of bancassurance demand, according to Josa
(2005).

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 CHAPTER NO IV:

DATA ANALYSIS, PRESENTATION AND INTERPRETATION

The study was conducted in the city of Kalyan collecting information from the customers of
SBI who had purchased Insurance. The respondents are strictly belonging to the Kalyan city
and no other respondents were taken into consideration outside of it.

Table 4.1: Respondents response to their Age

Age Group Response

18-25 56
26-35 15
36-60 9
60 Above 20
Total 100

Chart 4.1: Respondents response to their Age

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 Age Group

20% 18-25
26-35
36-60
9% 60 Above
56%
15%

Analysis:

From the above table 4.1 we can see that about 56 respondents belong to 18-25 age group.
The next group taken into consideration is the age group of young adults ranging from 26-35
which was filled by 15 respondents. The next group consist of adults ranging from 36-60
years of age which was filled by 9 respondents the final age group consist of senior citizens
ranging from 60 and above which was filled by 20 respondents. It was attempted by 100
respondents.

Interpretation:

From the chart 4.1 we can interpret that the highest number of responses we have gathered is
from young generation ranging from the age of 18-25 filled by 56% of the respondents, we
can say that there is an active number of respondents from young sections and are willing to
take time to reply to the questionnaire. The second highest response we have gathered is from
the senior citizens ranging from 60 and above which was filled by 20% of the respondents we
can interpret that the senior citizens being retired found it convenient to respond to the
questionnaire. The third age group consisted of young adult ranging from 26-35 filled by
15% of the respondents. This age group usually belong to service and business sector se the
response collected was smaller in number yet it is the second lowest response we have
collected so far. The lowest response collected was from adult section with age group of 36-
60 filled by only 9% of the respondents being an active participant in the service sector we
can interpret that they didn’t find enough time to make up for the questionnaire making this
age group less active participant so far.

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Table 4.2: Gender of the respondents

Male Female Total

55 45 100

Chart 4.2: Gender of the respondents

Gender of Respondents

Male
Female
45%
55%

Analysis: From the table 4.2 we can see that the response gathered between male and female
is close where 55 respondents were male and 45 respondents were female.

Interpretation:

The response was collected from 100 respondents and so far the results are satisfactory with
major contribution from the male side as we can see from the chart 1.2 about 55% of the
respondents were male. The rest were female which were about 45%. We can say that there is
not difference with larger margin between male and female however in this case male still
dominated getting 10 more respondents than female. The survey also had other option which
was not filled by any of the respondents.

Table 4.3: Profession of the respondents

Profession Response
Business 16
Service 44
Student 27
Other 13
Total 100

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Chart 4.3: Profession of the respondents

Profession of the respondents

13% 16% Business

Service
Student
Other
27%

44%

Analysis:

From the table 4.3 which states the profession of the respondents. Out of which 16
respondents belong to business sector. The highest number we got is for service sector which
was about 44 of the respondents. The students responded to the survey was about 27. The
remaining were from other sector responded by 13 respondents which can be later
interpreted.

Interpretation:

From the chart 4.3 we can clearly see that we have collected 100 respondents from different
sectors and there is active response coming from few of those. If we look at the chart 1.3 the
greatest number of responses, we have gathered is from service sector with 44% of the
respondents. We can say that many of the respondents from service sector find time to
respond to our research and their contribution to this was fruitful as well being the largest
sector to respond. The second highest response was gathered from the students which was
responded by 27% of the respondents, even though the respondents were students they were
lesser in number than the service sector which is surprising since the expectation of larger
response was from students yet it is the second largest response we have gathered. The third
sector was from business people and the response we gathered so far was only 16% it is also

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the second lowest response we have gathered, the reason is yet not specified for this lower
response but we can assume many business men’s are busy and hardly have time to respond
to a survey yet this response will be fruitful in our future study. The lowest response we
gathered from is from other sector which was about 13%. The other sector can be assumed as
retired respondents, doctors, teachers, etc. This people were lower in number but we can get
more response from this sector if the sample size is increased from 100. Yet we manage to
get response from different sectors and gathered their knowledge and experience related to
bancassurance of State Bank of India.

STATISTICAL QUESTIONS

Table 4.4: Respondents response if they are aware about their bank selling Insurance

Yes No Total
79 21 100

Chart 4.4: Respondents response if they are aware about their bank selling Insurance

Respondents response if they are aware about

bank selling Insurance
21

No 21
79

Yes 79

0 10 20 30 40 50 60 70 80 90

Analysis:

We can see the respondent’s response in the table 4.4 which states their awareness level
related to SBI selling Insurance policy. Out of the response received 21 of the respondents
were not aware about their bank selling insurance policy. The remaining response were 79
claiming that they are well aware about their bank selling insurance policy.

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Interpretation:

Bank selling insurance is a very older concept yet many of the people are still not aware
about the bank selling insurance policy yet the response we gathered was very positive and
much helpful the expected. According to the response we got about 79 of the respondents
were actually aware about their bank selling insurance policy. Since the survey was
conducted only for the respondents residing in Kalyan it is now clear than many of the SBI
Bank customers in Kalyan city are well informed about the bank selling Insurance policy
which is a very positive response for our survey. The remaining 21 respondents were still
uninformed about their bank selling Insurance policy, that doesn’t mean that they are
completely ignorant about bancassurance policy but also because they only use bank for
financial transaction and prefer Insurance company rather than Bank for insurance. Yet the
response gathered is a positive sign that many are well informed about their bank and
insurance.

Table 4.5: Respondents response to the sources from which they got information about bank
selling Insurance.

Sources Response
Media 24
Bank Officials 30
Friends/Relatives 27
Agents 19
Total 100

Chart 4.5: Respondents response to the sources from which they got information about bank
selling Insurance

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 Sources of Knowledge about Bancassurance

19% Media
24%
Bank Officials
Friends/Relatives
Agents

27%
30%

Analysis:

From the table 4.5 we can make analysis on the response we have collected on the sources
through which they got information about their bank selling insurance policy. Out of the 100
respondents 24 of the respondents have got information about the insurance through media.
The other respondents got information from the bank officials which was said by around 30
of the respondents. 27 of the respondents have got information from their friends or relatives.
The remaining 19 respondents gathered information from the agents.

Interpretation:

The chart 4.5 States response related to the respondents getting information about bank
selling insurance from the different sources. The major respondents says that they have got
information from the bank officials which was said by around 30 respondents. In SBI
Marketing has become a key factor other than accepting deposit and lending loans so bank
officials always try to increase their marketing by making their new and old customers aware
about the insurance. They are the major players since they are well informed about different
insurance schemes and can guide them well. 27 of the respondents have got information from
their family and friends we don’t know if we have gathered information from the
respondent’s family or friends unless the respondent shares it with them. This response is still
pretty close to the 30 respondents we gathered from the bank officials. The third preferred
option was media it was opted by 24 of the respondents. Many times, social medias like
twitter and Instagram SBI keep tweeting or posting on their social media handles about new
schemes and rates related to it. The lowest response we got is from agent source. Many

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times, people tend to hire a freelancer agent who guides them through insurance policy in
return he gets commission for his work. This option was opted by only 19 of the respondents
since many are already well informed about the policies through other sources.

Table 4.6: Respondents response if they have purchased any insurance policy through SBI

Yes No Total
59 41 100

Chart 4.6: Respondents response if they have purchased any insurance policy through SBI

Respondents response if they have purchased

insurance policy from bank

59

41

Yes No

Analysis:

The table 4.6 shows response of the respondents who have purchased an insurance policy
from SBI. Out of the 100 respondents 59 of the respondents have purchased insurance policy
from SBI while remaining 41 respondents still haven’t purchased any insurance policy from
the bank.

Interpretation:

The chart 4.6 clearly shows respondents respond in a short graphical manner. We can see that
59 of the respondents have already purchased an insurance policy from the bank. Many of the
customers probably prefer insurance from the bank itself rather than going to any other

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insurance institute. In most of the SBI branch locker service is available only when the
account is opened along with purchase of insurance policy so we cannot be sure if the
insurance purchased by the respondents is either by choice or they were forced. The
remaining 41 respondents haven’t purchased any insurance policy either they prefer
insurance of other institute or they are not yet aware about bank selling insurance policy.
Premium policy can also be another reason for not purchasing any policy from SBI.

Table 4.7: Respondents response to the insurance policy being purchased

Policy Purchased Response

Life Insurance 9
Health Insurance 18
Home Insurance 13
Motor Insurance 8
Travel Insurance 11
Total 59

Chart 4.7: Respondents response to the insurance policy being purchased

Insurance Purchased from SBI

Life Insurance
19% 15% Health Insurance
Home Insurance
14% Motor Insurance
31%
Travel Insurance
22%

Analysis:

The above table gives information about respondents purchasing insurance policy from
banks. This question was not a mandatory question and only was attempted by the

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respondents who have purchase insurance policy. Out of the 59 respondents 9 respondents
have purchase Life insurance policy from SBI. 18 respondents have purchased health
insurance policy. Home insurance was purchased by 13 respondents. Motor insurance was
purchased by only 8 respondents and remaining 11 purchased travel insurance.

Interpretation:

The question related to the chart 4.7 was not a compulsory to attempt and was only attempted
by 59 respondents who actually has purchased insurance policy from SBI. The choices were
divided only in 5 parts considering only main insurance policies. The most response was
collected from Health Insurance, about 18 respondents which is about 30% have purchased
this policy as this insurance covers all medical expenses and this policy being flexible with
different options and features turns out to be most important for many respondents. The
second most preferred option is home insurance which is purchased by about 22% of the
respondents which is about 13 customers. SBI home insurance provide coverage to both the
house and its belongings which can be purchased both by homeowner or tenants. The third
preferred option is travel insurance which was opted by 19% respondents which is about 11
respondents out of 59. The best part about travel insurance of SBI is it reimburses tickets if
the person doesn’t board the plane. This insurance is worldwide and not only to a specific
region along with easy claim settlement making it the most preferred option other than
remaining 2. The second lowest was life insurance preferred by about 15% of the respondents
or 9 respondents. This policy act as a strong competitor for LIC Policy which can be a core
reason for a smaller number of respondents opting towards it. The lowest option was motor
insurance which was just a percent lower than life insurance opted by 8 of the respondents.
With so many other competitions in motor insurance from HDFC Ergo and Bajaj Allianz the
preference to this insurance policy has been declining with better facilities provided by other
two insurance policies of this banks with ICICI Lombard on top.

Table 4.8: Respondents response for not purchasing Insurance from SBI

Reasons for not purchasing Response

Do not have knowledge about Banks selling Insurance 14
Bank sell tied Insurance Product 8
I am satisfied with the current services provided by my insurance 12
company
There might be difficulty in claim settlement 7

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 Total 41

Chart 4.8: Respondents response for not purchasing Insurance from SBI

Reasons for not purchasing policies

Do not have knowledge about Banks

selling Insurance
17% Bank sell tied Insurance Product
34% I am satisfied with the current ser-
vices provided by my insurance
company
There might be difficulty in claim
29% settlement

20%

Analysis:

The question was not a mandatory one and only respondent who haven’t purchased any
insurance policy has opted to this question. Out of 41 respondents 14 of the respondents do
not have knowledge related to bank selling Insurance. The second opted respond was bank
selling tied Insurance Product opted by 8 respondents. The third opted response was
respondents satisfied with the current services provided by their insurance company opted by
12 respondents. The last response was difficulty in claim settlement opted by 7 respondents.

Interpretation:

The response was gathered from 41 respondents who didn’t purchased any insurance policy
from SBI. Few of the main reasons were taken into consideration and a question was made
accordingly to that. The major respondents said that they do not have knowledge about their
bank selling insurance policy which was said by around 34% of the respondents which is
about 14 customers. We can say that these 14 respondents are the same ones who were not
aware about bank selling insurance policy from the question mentioned in table 1.4. The
other major response was being satisfied with the current services provided by their insurance
company which was opted by 29% of the respondents or 12. This respondent already have an
insurance policy of different insurance company or different banks like HDFC or ICICI. The

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third response is for bank selling tied insurance policy said by 20% respondents or 8
response. Many time bank force customer to purchase join insurance policy for example
making them purchase accidental policy along with health insurance making this another
reason for not purchasing insurance. The final response is from the respondents who believe
that claim settlement is major issue of SBI. About 17% respondents say that claim settlement
is a lengthy procedure of SBI making them opt to different companies then SBI.

Table 4.9: Respondents response to aspects that made them purchase from SBI

Why Purchase from SBI Response

Convenience 22
Location 14
Trust 26
Brand Image 23
Professionalism 15
Total 100

Chart 4.9: Respondents response to aspects that made them purchase from SBI

Why Purchase from SBI

Conveniene
15% Location
22%
Trust
23%
14%
Brand Image
Professionalism
26%

Analysis:

The table 4.9 shows respondent’s response towards various aspects that made them choose
insurance from SBI and not any other institute. The first according to table is convenience
which was responded by 22 respondents. The second is location said by 14 respondents. The

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third response consist trust which was opted by 26 respondents. The second last response is
brand image opted by 23 respondents. The last is professionalism which was considered by
15 respondents only.

Interpretation:

The chart 4.9 shows perspective of the respondents towards purchase of insurance policy
through SBI Bank. 5 of the core perspectives were taken into considered and a question was
framed accordingly for the respondents. The highest response was gathered from Trust
perspective with about 26% respondents saying that. Many do believe that SBI being a
government bank is safe and margin of fraud is quite rare if proper norms and regulations are
followed. The second highest option is brand image opted by 23% of respondents. Many
respondents do believe that SBI being the oldest and government run it has better brand
image since it has got more experience and level of trust is also higher as compared to other
banks. Another very close response is convenience opted by 22% of the respondents. Since
the documentation and procedure to get insurance is quite less than other bank also it is also
not lengthy and quicker to get any policy making it convenient and less time consuming for
the respondents. The second lowest option is professionalism with around 15% of the
respondents believing in that. Many believes that the employees in SBI are well trained and
professionals who would explain the policy in a lot of better ways without usage of jargons.
Also being disciplined in their work. The lowest response is just 1 percent lower than
professionalism which is location said by around 14% of the respondents. Many don’t feel
that location is the core reason for opting SBI Bank. The location is just one of the minor
reasons for selection of this insurance policy though it is also a necessary reason since SBI
has lots of branches in many different locations.

Table 4.10: Respondents response to documents required the most in getting Insurance

Documents required Response

Aadhar Card 55
Utility Bills like electricity bill 7
Voter ID 10
Pass port 11
Pan Card 17

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 Total 100

Chart 4.10: Respondents response to documents required the most in getting Insurance

Documents Required the most

Aadhar Card
17%
Utility Bills like electricity bill
Voter ID
11% Pass port
55% Pan Card
10%
7%

Analysis:

From the table 4.10 we can learn a lot about the respondent’s experience related to documents
required. About 55 respondents have said Aadhar card is mostly required. Other 7
respondents say that utility bills like electricity bill is most required. The third is voters card
said by about 10 respondents. The other respondents had said passport as necessary one said
by 11 respondents. The last is pan card which was said by 17 respondents.

Interpretation:

The chart shows response of the respondents towards documents required the most when you
purchase insurance policy. About 55% of the respondents says that Aadhar card is the
document which is most required. Usually Aadhar card is the major document which is
submitted since many original documents are already linked to it. The next option is pan card
which is said by about 17% of the respondents. Pan card is another identity proof and usually
a preferred document when it comes to financial transaction also an important document to
file income tax return. The third option is not a vast number yet it has got preference which is
passport said by 11% of the respondents. Even though this document is not a necessary one to
get insurance policy it is still the third highest option, we can say many has this identity card
with them. The second lowest is voter’s id and about 10% of the respondents have said that it

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is the document which is required. The lowest response states that it is not a compulsory
document to submit while getting insurance. The lowest is utility bills or electricity bill said
by 7% of the respondents. It was a necessary document in early stage since it used to have
address on it but since many identity proofs already mention the address proof the popularity
of utility bill has been declining.

Table 4.11: Respondents response if the documentation is tedious of SBI

Yes No Total
60 40 100

Chart 4.11: Respondents response if the documentation is tedious of SBI

Documentation tedious of SBI

Yes
40% No

60%

Analysis:

The table 4.11 shows respondent’s response if the documentation of SBI was tedious or not.
Out of the 100 respondent’s majority of respondents have said yes filled by 60 of the
respondents while 40 respondents didn’t have any trouble in documentation.

Interpretation:

A documentation is a tricky procedure in many departments and time consuming. Even in

SBI these problems exist. Out of the 100 respondent’s majority of the response has got for
yes means the procedure was tedious. Many time SBI branch can have lack of staff which

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puts a burden on a single employee making that person less productive since its not an easy
job for a single employee to do all work. 40% of the respondents have said the documentation
was not tedious of SBI. The response being positive has different reason like they went to
different SBI branch in Kalyan where the work load is low.

Table 4.12: Respondents response to the documentation being more tedious either of SBI or
insurance company

SBI Other Insurance company Total

60 40 100

Chart 4.12: Respondents response to the documentation being more tedious either of SBI or
insurance company

SBI Vs Insurance companies

SBI
40% Other Insurance company

60%

Analysis:

Many of the respondents find documentation of SBI more tedious than insurance companies
said by around 60 of the respondents. The remaining 40 respondents say that the
documentation of insurance companies is more tedious than SBI.

Interpretation:

The above chart shows respondents response if they find documentation of SBI more tedious
or their past experience of Insurance companies. The most respondents said that the

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documentation of SBI turns out to be more tedious than their past experience of insurance
company or getting insurance from any other banks. Other 40% of the respondents said that
their insurance company documentation was more tedious we can believe this made them
switch to SBI insurance policy.

Table 4.13: Respondents response to level of satisfaction on different aspects of purchasing

from SBI

Chart 4.13: Respondents response to level of satisfaction on different aspects of purchasing

from SBI

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Analysis:

From the above chart we can only make out average number of respondent’s mindset, in most
of the variable somewhat satisfied bar was higher in all of them. The second highest response
in all variable is for very satisfied. The neutral is the third highest response we have gathered
so far. The second lowest is somewhat dissatisfied while the lowest is dissatisfied.

Interpretation:

This was a multiple-choice grid question which was attempted by all the respondents. It was a
lengthy question with 5 variables likes explanation of policy details, timely disbursement of
benefits, Behaviour of staff, Timely updated information of policy, Timely intimation of
payment due. 5 options were given like very satisfied, somewhat satisfied, neither satisfied or
dissatisfied, somewhat dissatisfied, very dissatisfied. The major response was for somewhat
satisfied considering all variables many do feel that they are somewhat satisfied with the
services of SBI. Another positive is the next close response which is very satisfied and very
next to it is neutral, it means many of the respondents are giving positive response towards
their experience in different departments of SBI. The lowest is the negative response for
somewhat dissatisfied and very dissatisfied yet the response is still positive.

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Table 4.14: Respondents respond towards difficulties they faced while purchasing insurance
from SBI

Difficulties Response
Policy documentation 38
Rude behaviour from staff 21
Lack of explanation from agent 29
Premium Payments 12
Total 100

Chart 4.14: Respondents respond towards difficulties they faced while purchasing insurance
from SBI

Difficulties while purchasing policy

12% Policy documentation

38% Rude behaviour from staff

29% Lack of explanation from agent

Premium Pauments
21%

Analysis:

The table 4.14 states the difficulties respondents faced while purchasing insurance. 38
respondents had issues with policy documentation. 21 respondents say that the behaviour of
staff was rude. 29 respondents believe that lack of explanation from the agent. The last is
difficulties in premium payments.

Interpretation:

The question consists of 4 key difficulties that the respondents might face while getting
insurance. The majority of the respondents say that the policy documentation was the issue
which was said by 38% of the respondents. Many already believed from our previous

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question that the documentation of SBI is more tedious and lengthier which is a major issue
of many respondents. Second highest response is for lack of explanation from SBI Agent said
by around 29% of the respondents. Many times, in order to sell policy agents tends to hide
major disadvantages of the policy and circumstances under which this policy won’t be valid
making respondents ignorant towards it making it another difficulty. Rude behaviour from
staff is another difficulty and was close to lack of explanation said by around 21% of the
respondents. Many respondents have witnessed bank employees to be rude to them while
taking policy. The lowest response we have collected is for premium payment said by around
12% of the respondents. Premium payments were considering as not a big issue in terms of
respondents. This issue still needs to be handled in different branches of SBI especially if
there are rude staff at same time.

Table 4.15: Respondents response if they will continue to use SBI Insurance

Continue usage Response

Definitely will not 15
Probably will not 11
Can't say 46
Probably will 15
Definitely will 13
Total 100

Chart 4.15: Respondents response if they will continue to use SBI Insurance

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 Keep using SBI Insurance

13% Definetly will not

15%
Probably will not
Can't say
15% 11% Probably will
Definetly will

46%

Analysis:

The table 1.15 shows respondent’s response if they will continue to use policy of SBI or not.
15 respondents said definitely will not means they won’t continue. 11 respondents said
probably will not means they would think on it once again. 46 respondents still are not sure if
they need insurance or not. 15 respondents will probably continue SBI insurance while 13
respondents definitely will continue this policy.

Interpretation:

From the chart it is already clear that the majority of the respondents are still not sure if they
want to continue this policy or not. It was said by around 46% respondents which is nearly
close to half of the respondents. Many stayed neutral probably look at different departments
and benefits before deciding to change or not. We got same response to two perspective
which is definitely will not and probably will. Both have received same response by 15% of
the respondents the only difference is that one is positive while the other one is negative.
Many of the respondents will probably continue using SBI only because of good brand image
and good services so far, they received as for definitely will not respondents have got
negative experience and will discontinue their policy. The next high response is definitely
will with 13% of the respondents saying they enjoyed the services being provided from SBI
and will continue their relationship with it. The lowest response is for probably will not with
11% of the respondents saying that. Due to their terrible experience yet because of bank
goodwill they would probably change depending upon current situation.

Table 4.16: Respondents response if they would recommend SBI insurance to other people

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 Yes No Total
68 32 100

Chart 4.16: Respondents response if they would recommend SBI insurance to other people

Will you recommend SBI Insurance

32% Yes
No

68%

Analysis:

The table 4.16 shows respondent’s response if they would recommend SBI Insurance to
anyone. About 68 respondents said that they would recommend while 32 respondents said
they won’t be recommending this policy to anyone.

Interpretation:

The chart 4.16 gives a positive sign making us believe that the service of SBI is worth
recommending to other peoples since about 68% of the respondents actually believe that they
are satisfied with the services that are being provided and they would recommend other
people in future if they are planning to purchase policy. We still have respondents who won’t
be recommending SBI policy, about 32% respondents don’t plan to recommend it to other
people considering the past experience they have got through it.

HYPOTHESIS TESTING

H0: The documentation of SBI is not tedious

H1: The documentation of SBI is tedious

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 GOLDEN RULE IF P VALUE IS LESS THAN 0.05 ACCEPT H1

Chi square test was conducted and the P value we got is 0.15 which is higher than 0.05 since
the golden rule states that P value should be less than 0.05 in order to accept H1 since P value
is more than 0.05 then we reject alternate hypothesis and accept null.

H0:  The services of SBI Bank is not the key factor in choosing insurance from the Bank
H1:  The services of SBI Bank is the key factor in choosing insurance from the Bank
Descriptive Analysis
N Mea S.R. Std Varia Kurt S.E. Skew S.E. Ran
n Mean Dev nce osis Kurt ness Ske ge
w
Q1 100 2.25 0.11 1.15 1.32 -0.28 0.48 0.76 0.24 4
Q2 100 2.31 0.11 1.09 1.19 -0.24 0.48 0.6 0.24 4
Q3 100 2.28 0.12 1.18 1.4 -0.12 0.48 0.79 0.24 4
Q4 100 2.21 0.11 1.12 1.26 0.28 0.48 0.89 0.24 4
Q5 100 2.43 0.12 1.22 1.48 -0.24 0.48 0.73 0.24 4
Valid N 100
(listwise)
Missing N 0
(listwise)

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Level of Satisfaction

To understand the level of satisfaction regression analysis was conducted and the R 2 we got
was 0.06 since the P value is more than 0.05 we can say that this data is not statistically stable
and we need to reject our alternative hypothesis of H1:  The services of SBI Bank is the key
factor in choosing insurance from the Bank and accept null hypothesis

CHAPTER NO. V:
CONCLUSIONS AND SUGGESTIONS
The success of bancassurance is heavily dependent on banks maintaining outstanding client
relationships; consequently, banks must strive in that direction. The shifting attitude is
permeating the Indian banking system, and now is an excellent time for banks to consider
bancassurance, particularly in light of the proactive policy climate of regulatory bodies and
the government. The fact that banking operations in India, unlike in other developed nations,
are still branch centred and humanly operated as opposed to highly mechanised and
automated banking channels, such as online banking, ATMs, and so on, is all the more
favourable to the blossoming of bancassurance. Regulators might look into enabling banks to

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form alliances with more than one insurance business, providing clients additional options.
Banks have recognized the potential of Bancassurance in India and will take ownership
holdings in insurance businesses in the long term, in addition to functioning as distributors.
This is analogous to a trend seen in the United Kingdom and elsewhere, where banks began
as insurance distributors before transitioning to fully owned insurance businesses. If current
trends continue, bancassurance will become the rule rather than the exception in India. As
previously stated, supervisory problems can be best addressed by greater and more systematic
collaboration among the different supervisory bodies. At both the institution and regulator
levels, there must be a clear distinction between banking and insurance activity. Adequate
training combined with a strong incentive scheme might mitigate any employee reluctance.
To summarise, the Bancassurance model would benefit all parties involved - the client, the
insurance firms, and the banks. The most apparent benefit for clients is that, in the insurance
sector, trust plays a larger role, due to the inherent necessity of a long-term connection
between the insurer and the insured. Customers in India were accustomed to the monopolistic
attitude of public sector insurance firms for decades; despite several flaws in their dealings,
they had client confidence; this pattern continues to this day, owing mostly to their
government control. Customers will have to wait a bit longer to switch to private insurance
companies that work with international corporations that are less well-known to the Indian
public. Because of their well-established and long-cherished connection, banks may easily fill
the breach between less well-known emerging private insurance businesses and the
prospective insured. Any new insurance products routed through the bancassurance channel
would be highly appreciated by clients in these circumstances. Above all, in the emerging
scenario, customers prefer to have all financial services consolidated and delivered through a
single window in the form of a 'financial super market,' regardless of whether financial or
banking transactions, because the availability of a wide range of financial/ banking services
and products relieves customers from the time-consuming task of locating a separate dealer
for each service/ product. The tendency is toward the 'one-stop-shop' even worldwide. Even
in industrialised countries, financial literacy and financial counselling have become
increasingly important in recent years, especially when making long-term investment
decisions.

Bibliography
A, D. P. (2008). Health Poverty and Economic Growth in India. Economic and Political weekly.

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Authority, I. R. (2011).

Ellis, R. A. (2000). Health Insurance in India: Prognosis and Prospectus. Economic and Political
Weekly, 35(4), 207-17.

H.D, B. K. (2008). Life & Health Insurance. Pearson education, India.

Insurance, G. M. (2011). IRDA Journal.

Mascarenhas, O. A. (2006). Lasting customer loyalty: a total customer experience approach. Journal
of Consumer Marketing, 387-405.

Mousumi Choudhury, R. S. (2016). Measuring Customer Experience in Bancassurance: An emerical

study. Preliminary communication, 28, 47-62.

R, D. A. (2009). Health Insurance in India: A Review. Kolkata: The Insurance Times.

Sharma, V. C. (2012). Customers’ awareness towards banking services: a study of urban areas of
Uttrakhand. South Asian Journal of Marketing and Management research. Uttrakhand.

Shukla, R. B. (2007). Customer Satisfaction and Role of Channel Intermediaries in Life Insurance
services: a comparative study.

V, G. A. (n.d.). Health Insurance for Informal Sector – A Case Study from Gujrat. Economic and
Political Weekly, 35(40), 607-613.

Varma, R. T. (2012). Enhancing and empowering: customer experience. SCMS Journal of Indian
Management, 71-78.

Webliography
https://www.investopedia.com/terms/b/bancassurance.
https://economictimes.indiatimes.com/definition/bancassurance
https://cleartax.in/g/terms/bancassurance
https://corporatefinanceinstitute.com/resources/knowledge/finance/bancassurance/
https://www.sbilife.co.in/
https://www.sbigeneral.in/portal/
https://www.mckinsey.com/industries/financial-services/our-insights/cxo-perspectives-a-
conversation-on-the-future-of-bancassurance

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 ANNEXURE
1. Age of the respondents?
o 18-25
o 26-35
o 36- 50
o 50-60
2. Gender of the respondents?
o Male
o Female
o Other

3. What is your profession?

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 o Business
o Services
o Student
o Other
5. Are you aware about your bank selling Insurance?
o Yes
o No
6. Sources from which you got knowledge about bancassurance?
o Media
o Company officials
o Bank officials
o Friends/Relatives
o Agents

7.Have you purchased any policy through your banks?

o Yes
o No
8.  If yes then Which one? (Skip this question if it’s No)
o Life Insurance
o Health Insurance
o Home Insurance
o Motor Insurance
o Travel Insurance

9. If No then then State reason for not purchasing Insurance from Bank? (Skip this question if
its Yes of Question 4)

o Do not have knowledge about Banks selling Insurance

o Bank sell tied Insurance Product

o I am satisfied with the current services provided by my insurance
company
o There might be difficulty in claim settlement

10. Different aspects that made you purchase from SBI?

o Convenience
o Location
o Trust
o Brand image
o Professionalism

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11. Documents required mostly for purchasing Insurance Policy?
o Aadhar card
o Utility bill like electricity bill
o Voter Id
o Passport
o Pan card

12. Was Documentation and procedure Tedious of Bank?

o Yes
o No

13. According to you who's documentation and procedure was more Tedious?
o SBI
o Other Insurance company

14.  Level of Satisfaction on different aspect of purchasing Insurance from SBI?

o Very satisfied
o Somewhat satisfied
o Neutral
o Somewhat dissatisfied
o Very Dissatisfied
15. Difficulties you faced on purchasing of Insurance from SBI?
o Policy documentation
o Rude behaviour
o Lack of explanation from SBI agent
o Premium payments
16. Will you Continue your SBI Insurance Policy?
o Definitely will not
o Probably will not
o Can’t say
o Probably will
o Definitely will

17. Will you recommend others to Purchase SBI Insurance Policy?

o Yes
o No

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