09 Chapter 3

Chapter – 3
Profile of the Area under Study
3.1 Introduction
Present research is conducted in the area of Marathwada region of

Maharashtra state. Marathwada region is the part of Maharashtra state consisting 8
districts namely, Aurangabad, Jalna, Beed, Parbhani, Hingoli, Latur, Osmanabad and
Nanded.
Marathwada is called a backward region in Maharashtra. It lays at the south

eastern side of the state. This region i.e. Marathwada was formerly under the state of
Nizam before 1948. Further after the Police Action taken by Sardar Patel (Govt. of
India) Hyderabad state merged in India. Earlier, there was a great freedom movement
undertaken under the successful leadership of Swami Ramanand Teerth. This is
known as Marathwada Mukti Sangram. This freedom movement has a great historic
importance. Many of the freedom fighters struggled hard against the Nijam State and
suffered a lot. But at the end it becomes free from the Nijam and merged into
Maharashtra as it is a Marathi Language area.
The present research is related with the geographical area of Marathwada. The
researcher has in this research included the branches of State Bank of India working
in bancassurance for the analyzing the performance of bancassurance and various
problems of bancassurance. Therefore it is not out of place to study the analytic
profile of Marathwada region with its 8 districts. The researcher has therefore studied
the historical and geographical aspects of Marathwada.
3.2 Geographical & Historical Profile of Marathwada Region
The study of geographical area and its historic importance becomes necessary
as it is deeply related with the people residing here. They are directly involved in all
the activities happened in this region. This study of performance of bancassurance
also have the need to study the geographical and historical aspects of the region.
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Marathwada region of Maharashtra state is made up of 8 districts i.e.
Aurangabad, Jalna, Beed, Parbhani, Hingoli, Nanded, Osmanabad and Latur. As
stated above; earlier before 1948, this region was the part of the Hyderabad (Nizam)
State. After the great freedom movement it is connected with the Maharashtra state.
The Marathwada region has historical importance. It is also necessary to have a look
on the geographical features of this region. The researcher has presented historical
and geographical profile of Marathwada region in this section. The researcher has
presented profile of the Marathwada region with importance and highlights of each
district.
Geographical Location of Marathwada Region
As the researcher has conducted a study of performance of bancassurance of

SBI in Marathwada region, it becomes necessary to have a look on the geographical
location of this region. Therefore the researcher has studied the geographic location of
Marathwada region.
Table No. 3.1
Table Showing Geographical Location of Marathwada Region
Sr. No. District Latitude Longitude

01. Aurangabad 19-20 74-76
02. Jalna 19.1-20.3 75.4-76.4
03. Beed 18.3-19.3 74.5-76.6
04. Parbhani 18.45-20.01 76.13-77.26
05. Hingoli 19.05-20.05 76.30-77.30
06. Nanded 18.15-19.55 77.7-78.15
07. Latur 18.5-18.7 73.25-77.25
08. Osmanabad 17.35-18.4 75.16-76.4
Source: Report of Socio-Economic Analysis, 2017.
The above table shows that,
The Latitude of Aurangabad is 19-20 and the Longitude is 74-76, Latitude of

Jalna is 19.1-20.3 and the Longitude is 75.4-76.4. The Latitude of Beed is 18.3-19.3
and the Longitude is 74.5-76.6. Latitude of Parbhani is 18.45-20.01 and the Longitude
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is 76.13-77.26, Latitude of Hingoli is 19.05-20.05 and the Longitude is 76.30-77.30.
The Latitude of Nanded is 18.15-19.55 and the Longitude is 77.7-78.15, Latitude of
Latur is 18.5-18.7 and the Longitude is 73.25-77.25, and Latitude of Osmanabad is
17.35-18.4 and the Longitude is 75.16-76.4.
After having a look on the geographical locations of the districts in

Marathwada region, the researcher has further presented the analytic study of the
Marathwada region with its geographical features and historical importance.
Aurangabad district is one of the main district of Marathwada region. The

district has nine (09) talukas. These are – Aurangabad, Khuldabad, Kannad, Soygaon,
Sillod, Paithan, Gangapur, Vaijapur and Fulambri. Out of these talukas 'Fulambri'
came into existence on 26th June, 1999 under the talukas re-organization scheme.
The total area of the district is 10106 sq.km. The district is famous for Ajanta
and Ellora caves, the fort of Daulatabad of the Yadavas era, Jyotirlinga of
Ghrishneshwar and as a land of the saints. Though there are sculptures and carvings in
the caves of Ajanta and Ellora, these caves are famous worldwide because of the wall
paintings and the fine and classical art. Ellora is famous for the excellent sculptures of
Kailasa temple.
Aurangabad district has got the central place in the state. Jalgaon district is in
the north, while Jalna district is in the east of Aurangabad.' Godavari river flows on
the southern border of the district, beyond which towards south-east is Beed district,
whereas Nashik district is spread in the west and somewhat north-west of Aurangabad
district.
The general geographical features of the district can be described as a narrow

belt of Ajanta foothills in the extreme north, hilly region and plateau of Ajanta-
Satmala hill ranges and plains of the basins of Godavari river.
A narrow belt of the basins of Tapi river is at the foothills of Ajanta in the
extreme north of the district. Some part of Soygaon and Kannad talukas is included in
this area. Ajanta and Satmala ranges are in the south of this area and in the north of
the basins of Godavari river.
Ajanta and Satmala ranges are in fact branches of the Sahyadri Ranges. Some
part of the talukas like Sillod, Kannad, Khuldabad and Aurangabad is included in this
hilly and plateau area. Plains and the basins of Godavari river are in the west and the
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south of this region. Talukas like Vaijapur, Gangapur and Paithan and some parts of
the talukas like Kannad, Khuldabad and Aurangabad are included in this region.
'Jalna', district was formed on 1st May, 1981 under re-organization of
Aurangabad and Parbhani districts. Jalna is an ancient city situated on Manmad-
Kachiguda railway line, also situated on the right bank of Kundlika River. The district
has eight (08) talukas. These are – Jalna, Ambad, Bhokardan, Jafarabad, Partur,
Badnapur, Mantha and Ghansavangi.
The total geographical area of Jalna district is 7715 sq.km. The district has
historical importance. The moment the word ‘Jalna’ is pronounced, the first thing that
strikes our minds is the brave Lamani people. Famous seeds producing ‘Mahyco’
company is in Jalna. Jalna is also famous for bidis. Jalna is considered as an important
market yard in Marathwada.
‘Bhokardan’ a place famous for ancieny remains, ‘Ambad’, a pilgrimage place
of Goddess and ‘Jaamb’, a birth place of Samarth Ramdas swami are in Jalna district.
The district of Jalna has got a central place in the state. Jalgaon district is in
the north, Buldhana district is in the north-east and somewhat east, Parbhani district is
in the east, Beed district is in the south, Ahmednagar district is in the south-west and
Aurangabad district is in the west of Jalna district. The district of Jalna occupies 2.5%
of the total land of the state.
Earlier only five talukas were in the district, which were Jalna, Ambad,
Bhokardan, Jafarabad and Partur; but three new talukas were formed on 15th August,
1992 under talukas re-organization, these newly formed talukas are Badnapur, Mantha
and Ghansavangi.
Most of the areas of the district situated on the Deccan plateau are plains.
Ajanta hills are spread in the northern and north-western side of the district. Except
some hilly portion rest of the area of the district is of plain and plateau nature. The
height of the plateau in the-hilly region of Ajanta hills is 600 to 900 meters, while that
of the central portion of the district is 150 to 300 meters. The height of these plateaus
hi the basins of Godavari and Dudhna rivers is 300 to 600 meters.
The geographical features of the district can be stated as hilly region in the
north and north-west and rest is plain area. The northern parts of Jalna and Jafarabad
and western and northern parts of Bhokardan taluka are in the northern and north-
western hilly region. The basins of Godavari and Dudhna rivers are included in this
area.
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Beed district is also one of the major and important districts of Marathwada
region. The district has eleven (11) talukas. These are – Beed, Gevrai, Majalgaon,
Ambejogai, Kej, Patoda, Ashti, Dharur, Parali, Vadvani and Shirur-kasar. Out of
above-mentioned talukas Vadvani and Shirur-kasar came to existence on 26th June,
1999 under talukas re-planning. The total geographical area of the district is 10692
sq.km. Beed district occupies 3.5% of the total area of the state.
Beed district became part of Bilingual Mumbai State on 1st November, 1956,
thereafter when the state Maharashtra was formed on 1st May, 1960, it became part of
that.
Beed district also has historical importance. The name of the district is also
taken from the city i.e. Beed itself. There is a myth about the name of the city that
since the city is situated in the hole like basin of Bindusara river on the foothills of
Balaghat hills, the name of the city might have been derived from Beel (Marathi word
for burrow).
There is yet another myth that the meaning of ‘Bheer’, Pharsi word is water.
Level of underground water in this area is not very deep moreover Bindusara river
also flows through the city that is why this city never had scarcity of water. The city
used to have good water supply, so during the Muslim ruling the appropriate name,
‘Bheer’ might have been given to the city, thereafter the corrupted version of the
name came to existence and that is ‘Beed’.
A fable related to this city states that Jatayu stopped Ravana here when
Ravana was kidnapping Sita. There was a fight between both of them in which Jatayu
lost and after narrating the fact of Sita’s kidnapping to Rama he died here. To support
this fable the evidence of Jatashankar temple in the city is given. It is also said that it
is the sample place, which was referred in the Mahabharata as ‘Durgavati Nagri’.
It is a district of Marathwada Division in Maharashtra. Ahmednagar district is
in the west and somewhat in the south-west, Osmanabad district is in the south, Latur
district is in the east and somewhat in the south-east, Parbhani district is in the east
but somewhat in the north-east and Jalna and Aurangabad districts are in the north of
Beed district.
Parbhani district is also a historical area of Marathwada region. It has many
historical aspects. It is said that Parbhani district is the district of Saint Janabai. She
belonged to Gangakhed, her Samadhi is also here. The district has nine (09) talukas.
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These are – Parbhani, Jintur, Selu, Pathri, Gangakhed, Palam, Purna, Sonpeth and
Manvat.
The total geographical area of the district is 6511 sq.km. There is an ancient
temple of Prabhavati Devi is in Parbhani city. It is believed that the name Parbhaniis
because of this. Parbhani is the head quarter of the district, so the district is known as
Parbhani. Like other districts of Marathwada, this district was also under the regime
of Nizam. Then it was a district of Mumbai province, then of Bilingual Mumbai state
in 1956 and there after it became a district of Maharashtra state, when it came to
existence on 1st May 1960. Further the district was divided on 1st May 1999 and a new
district, ‘Hingoli’ was formed.
It is a district located on the bank of Godavari river on the Deccan plateau in
Marathwada division. This district is in the south-eastern part of Maharashtra.
Hingoli, a newly formed district is in the north, Nanded district is in the east, Latur
and Beed districts are in the south and Beed and Jalna districts are in the west of
Parbhani district. The district of Parbhani occupies 2.11% of the total land of the state.
When the district of Parbhani was divided and a new district, Hingoli was
formed on 1st May, 1999, only seven talukas were in Parbhani district, which were
Parbhani, Jintur, Selu, Pathri, Gangakhed, Palam and Purna; but the talukas in the
district were re-organized on 26th June, 1999 and two new talukas were formed, these
are Sonpeth and Manvat, so now there are total nine talukas in the district.
Hingoli district came into existence on 1st May 1999. Earlier it was the part of
Parbhani district. Hingoli is the eighth district of Marathwada. There are five (05)
talukas in Hingoli district. These are – Hingoli, Sengaon, Kalamnuri, AundhaNagnath
and Vasmat. The total area of the district is 4526 sq.km. The district is the smallest
one not only in Marathwada region but also in Maharashtra state.
It is a district in the south-east of the state and is in Marathwada division.
Buldbana and Washim districts are in the north, Nanded and Parbhani districts are in
the south, Yavatmal and Nanded districts are in the east and Jama and Parbhani
districts are hi the west of Hingoli district. This district occupies 1.47% of the total
area of the state.
Most of the part of the district is hilly. Ajanta hills are spread in the north of
the district and are known by the local name 'Hingoli hills'. Eastern parts of the
talukas like Hingoli, Kalamnuri, Sengaon and Aundha-Nagnath come in this area of
Hingoli hills. Paingangariver flows on the northern border of the district. The southern
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part of the district is plain region and some parts of the basins of Purna, Asna and
Kayadhu rivers are included in this area. The eastern part of Kalamnuri and Vasmat
taluka is included in plain region.
Nanded is a historical place. The district has many important historical places.
The district has sixteen (16) talukas. These are –Nanded, Ardhapur, Hadgaon,
Himayatnagar, Bhokar, Umri, Mudkhed, Loha, Kandhar, Dharmabad, Mukhed, Biloli,
Naigaon (Khairgaon), Mahur, Kinwat and Degloor. Out of these 16 talukas five
talukas came to existence under talukas reorganization on 26 June, 1999 these are
Mudkhed, Mahur, Umri, Himayatnagar and Dharmabad, while Ardhapur and
Naygaon (Khairgaon) came to existence on 30th December, 1999. The geographical
area of the district is 10,545 sq. km.
The Samadhi of tenth Guru of the Sikhs Guru Govindsinghji is here. The
weapons, used by Guru Govindsinghji are still preserved here. The emotions and
feelings of the Sikh community are attached to this place. People from various part of
the country and from abroad visit this place to see the holy sight of the Samadhi.
Nanded district became part of independent India when Nizam surrendered on
18th September, 1948 and gave acceptance to merge the princely state of Hyderabad
into independent India. When hi 1956 the state of Bilingual Mumbai came into
existence, this district became part of it later on when on 1st May, 1960, the state of
Maharashtra came into existence, this district acquired an important place in newly
existed Maharashtra State.
The district has many historical names such as Navnandi, Nandiyad, Nanditat,
Nandigram. ‘Navdandi’, means a dwelling of nine Sages and it is considered that
‘Nanded’ is a corrupted word of ‘Navdandi’ It is said that the royal family of Nand
ruled this area, so this area is called as ‘Nandatat’ and there is yet another thought
about the origin of the name of the place that the corrupted word of ‘Nandtat’ is
Nanded.
Famous poet of the Marathi literature, Waman Pandit also belonged to this
place.
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The history of Nanded district is not clear like the other districts of the state.
However, a reference of Nanded is found hi the myths. There is reference that the
Pandavas had visited this place. This area was under the regime of the
Andhrabhrutyas, Satvahanas, Chalukyas, Rashtrakutas, Yadavas, Khiljis, Bahmanis
and then Mughals hi successive manner. Nanded district became part of independent
India when Nizam surrendered on 18th September 1948 and gave acceptance to merge
the princely state of Hyderabad into independent India. When hi 1956 the state of
Bilingual Mumbai came into existence, this district became part of it later on when on
1st May 1960, the state of Maharashtra came into existence, this district acquired an
important place in newly existed Maharashtra State.
It is a district on the south-eastern border of Marathwada division. Yavatmal
district is in the north and in somewhat north-east, Parbhani district is hi somewhat
north-west and west and Latur district is in the west and less or more in the south-west
of Nanded district. The state of Karnataka is hi the south and south-west, while the
state of Andhra Pradesh is in the south-east and east of Nanded district. Bidar district
of Karnataka and Adilabad and Nizamabad districts of Andhra Pradesh are the
adjoining districts of Nanded district. This district occupies 3.42% of the total area of
the state.
There are three divisions of the district, which are hilly region in the north, the
area of basins of Gcdavari river and the area of Balaghat ranges.
Satmala ranges and Nirmal hills are spread hi the northern hilly area. Most of
the part of Kinwat, Hadgaon and Bhokar talukas are included in this northern area.
The plain area of the basins of Godavari river is hi between the northern hilly region
and southern hilly region of Balaghat ranges. Nanded, Biloli and Deglur talukas are
included in this central area. The southern area of Balaghat ranges is to the south of
this area and Kandhar and Mukhed talukas as well as die southern part of Deglur
taluka is included hi this southern area.
Latur district is also a famous and historical district. The district has ten (10)
talukas. These are – Latur, Renapur, Chakur, Ahmedpur, Nilaga, Ausa, Udgir, Devni,
. Shirur- Anantpal and Jalkot. The total geographical area of the district is 7,166 sq.
km. This district occupies 2.33% of the total area of the state.
Description of Latur city is seen in ‘Ratnapurmahatmya’ or Latur manuscripts.
The names of Latur in mythological times were Satyapur, Shripur, Ratnapur etc. It
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was referred as ‘Lattalur’ in the eighth century. This name was corrupted in this way,
Lattalur-Lattlur-Lattanur-Latunur-Latur.
There is a historical reference that Chatrapati Shivaji Maharaj had travelled
from Aurangabad to Nilanga via Latur in 1670. The coins of Latur were in use during
the era of the Peshwas.
Lokmanya Tilak had visited Latur in 1891. Because of his inspiration Latur
ginning factory was established. Latur city was connected by ‘Barshi Light’ railway
in 1911. As far as the extent of the Empire of Samrat Ashoka is concerned most part
of the present Maharashtra was under the rule of the Mauryas. So, it is estimated that
the Mauryas might have ruled over Latur and surrounding area, however one can't say
confidently that this area was under the Mauryan rule in absence of subjective
evidence. However, we can make a firm statement that the Satvahanas have ruled
over this area. Gautamiputra Satkarni, a brave king of the Satvahanas royal family had
conquered the areas of present Varhad, Marathwada etc. Historical evidence of the
period after the riding of the Chalukya is not clear, however it is seen that the
Rashtrakuts had ruled over this region in the eighth century. Latur had been referred
as 'Lattalur' in some of the copper inscriptions. With reference to these inscriptions it
is evident that Lattalur or Latur was the main place of the royal family of the
Rashtrakuts. The Rashtrakut kings used to call themselves as 'Lattalurpuradhish'. It is
observed on studying carefully the copper inscriptions of Amoghvarsha-I, the
Rashtrakuta king that 'Lattalur' was the best city in those days. After the Rashtrakutas
the Yadavas ruled over this region. Thereafter this area went under the ruling of the
Delhi Empire, then to the Bahamani's and then under the rule of Adilshahi and
Nizamshahi. Aurangzeb destroyed the Empire of Adilshah in 168land established the
ruling of the Mughals. Later on, Nizam-Ul-Mulk established an independent state of
Hyderabad and this area was under his ruling till India got independence.
When the State of Hyderabad was gets freedom from Nijam Rule after the
long and great freedom movement (Marathwada Mukti Sangram) and thereafter the
Police Action in 1948, this area was included in contemporary Mumbai province.
When re-planning of the states was done in 1956, this area became part of Bilingual
Mumbai state. When the state of Maharashtra was formed on 1st May, 1960, then this
area became a part of Osmanabad district hi Maharashtra. Osmanabad district was
divided and a separate Latur district was formed on 16th August, 1982.
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The district of Latur is located in the south-east of the state. Osmanabad
district is hi the west as well as south of the district Beed district is in the north-west,
Parbhani district is in the north, Nanded district is hi the north and east and Bidar
district of Karnataka is in the east and less or more to the south-east of Latur district.
The western and central part of the district is covered by the Balaghat ranges. The
basins of Manjra River are in the centre, while those of Terna River are hi the
southern part of the district. The northern part of the district is plain and has relief
features.
Osmanabad district is yet another district of Marathwada region. The earlier
name of Osmanabad was ‘Dharapur’ or ‘Dharashiv’. Mir-Usman Ali, the
contemporary Nizam gave his name to this city in 1910, since then this city came to
be known as ‘Osmanabad’. The district has eight (08) talukas. These are –
Osmanabad, Kalamb, Umarga, Tuljapur, Paranda, Bhoom, Lohara and Washi. Out of
these talukas 'Lohara' and 'Washi' came to existence on 26th June, 1999 under
reorganization of the talukas. Out of these talukas ‘Jalkot’, ‘'Devni’ and ‘Shirur-
Anantpal’ these three talukas came to existence under talukas replanning on 26th June,
1999. The total geographical area of the district is 7,550 sq. km.
The district of Osmanabad has importance of the religious place ‘Tuljapur’,
where a temple of Tuljabhavani, Goddess of entire Maharashtra exists.
It is the district in the south-western part of Marathwada. Beed district is in the
north, Latur district is in the east, the state of Karnataka is in the south-east and south,
Solapur district is in the south-west and west and Ahmednagar district is in the north-
west of Osmanabad district.
Considering the geographical features of the district and variations in the
elevation of different areas there are two parts of the district. First part is hilly area
having more elevation. This area is spread hi the western, southern and central parts
of the district. The second part is the plain area having low elevation.
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3.3 Demographic Profile of Marathwada Region
The researcher has analyzed demographic features of Marathwada region in this

section.
Gender wise Classification of Population in Marathwada
The main feature of any population is that the Gender wise classification. This
is one of the significant demographic characteristics of Population. The composition
of gender has a great relevance with bancassurance as we live in male dominated
society. Although the women in India are now being able to take their own decisions
and stands upon their own feet, but still the decisions like purchasing a life insurance
policy are generally taken by male. Therefore, the researcher has studied gender wise
Classification of Population in the area under study i.e. Marathwada region of
Maharashtra states. The results are presented in the following table.
Table No. 3.2
Gender wise Classification of Population in Marathwada
(Figures in Lakh)
Sr. District Male % Female % Total

No. Population Population Population
01. Aurangabad 19.24 51.99 17.77 48.01 3701
02. Jalna 10.11 51.61 9.48 48.39 1959
03 Beed 13.49 52.19 12.36 47.81 2585
04. Parbhani 9.43 51.36 8.93 48.64 1836
05. Hingoli 6.06 51.79 5.71 48.80 1170
06. Nanded 17.30 51.47 16.31 48.53 3361
07. Latur 12.73 51.87 11.81 48.13 2454
08. Osmanabad 8.62 51.99 7.96 48.01 1658
Source: District wise Socio-Economic Analysis, 2019.
Above table shows that –
The total population of Aurangabad district is 37.01 lakh out of which 1924
lakh (51.99%) is male population and 17.77 lakh (48.01%) is female population. The
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total population of Jalna district is 19.59 lakh out of which 10.11 lakh (51.61%) is
male population and 948 lakh (48.39%) is female population. The total population of
Beed district is 25.85 lakh out of which 13.49 lakh (52.19%) is male population and
12.36 lakh (47.81%) is female population. The total population of Parbhani district is
18.36 lakh out of which 9.43 lakh (51.36%) is male population and 8.93 lakh
(48.64%) is female population. The total population of Hingoli district is 11.70 lakh
out of which 6.06 lakh (51.79%) is male population and 5.71 lakh (48.80%) is female
population. The total population of Nanded district is 33.61 lakh out of which 17.30
lakh (51.47%) is male population and 16.31 lakh (48.53%) is female population. The
total population of Latur district is 54.54 lakh out of which 12.73 lakh (51.87%) is
male population and 11.81 lakh (48.13%) is female population. The total population
of Osmanabad district is 16.58 lakh out of which 8.62 lakh (51.99%) is male
population and 7.96 lakh (48.01%) is female population.
Beed district has the highest i.e. 52.19 lakh male population and Hingoli
district has the highest i.e. 48.80 lakh female population.
Percentage of Literacy in Marathwada - Gender wise Classification
Now a day’s literacy of the population has great impact on overall

development of the area. Marathwada region of the Maharashtra state is being called a
backward area with reference to literacy status also. For the purpose of this research,
literacy of the population is very important feature because that of the literate people
may be aware about the life insurance policy. As the life insurance is a safeguard for
the individual, it must be purchased by them. It can be said that higher the literate
population higher the chances of performing business in life insurance sector such as
bancassurance. Therefore, the researcher has studied percentage of literacy in
Marathwada region of Maharashtra state with gender wise classification. The results
are presented in the following table.
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Table No. 3.3
Gender wise Literacy Percentage of Population in Marathwada
Sr. District % of Male % of Female % of

No. Literacy Literacy Average
Literacy
01. Aurangabad 87.37 70.08 79.02
02. Jalna 81.53 60.95 71.52
03. Beed 85.55 67.82 76.99
04. Parbhani 82.64 63.63 73.34
05. Hingoli 86.96 98.95 78.17
06. Nanded 84.27 66.15 75.45
07. Latur 84.40 69.60 77.30
08. Osmanabad 85.84 70.51 78.44
Above table shows that –
Out of the total population of Aurangabad district percentage of male literate

population is 87.37% and the percentage of female literate population is 70.08% and
the average literacy of the district is 79.02%.Out of the total population of Jalna
district the percentage of male literate population is 81.53% and the percentage of
female literate population is 60.95% and the average literacy of the district is
71.52%.Out of the total population of Beed district the percentage of male literate
the average literacy of the district is 76.99%.Out of the total population of Parbhani
73.34%.Out of the total population of Hingoli district the percentage of male literate
the average literacy of the district is 78.17%.Out of the total population of Nanded
75.45%.Out of the total population of Latur district the percentage of male literate
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the average literacy of the district is 77.30%.Out of the total population of Osmanabad
female literate population is 70.51% and the average literacy of the district is 78.44%.
Thus, it can be found that, the highest i.e. 79.02% average literacy is in
Aurangabad and the lowest i.e. 71.52% average literacy is in Jalna district.
Rural – Urban Classification of Population in Marathwada
Location decides the awareness of people regarding the life insurance

particularly the bancassurance. So, it can be said that the location of the population is
the primary demographic factor that has a great impact on performance of
bancassurance (life insurance). Therefore, the researcher has studied Rural – Urban
Classification of Population in Marathwada region of the Maharashtra state. The
results are presented in the following table.
Table No. 3.4
Rural – Urban Classification of Population in Marathwada
(Figures in Lakh)
Sr. District Rural % Urban % Total

No. Population Population Population
01. Aurangabad 20.81 56.23 16.20 43.77 37.01
02. Jalna 15.82 80.76 3.77 19.24 19.59
03. Beed 20.71 80.12 5.14 19.88 25.85
04. Parbhani 12.66 68.95 5.70 31.05 18.36
05. Hingoli 9.99 85.38 1.79 15.30 11.70
06. Nanded 24.47 72.81 9.14 27.19 33.61
07. Latur 18.29 74.53 6.25 25.47 24.54
08. Osmanabad 13.77 83.05 2.81 16.95 16.58
It can be observed from the above table that –
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The total population of Aurangabad district is 37.01 lakh out of which 20.81
lakh (56.23%) is rural population and 16.20 lakh (43.77%) is urban population. The
total population of Jalna district is 19.59 lakh out of which 15.82 lakh (8276%) is
rural population and 3.77 lakh (19.24%) is urban population. The total population of
Beed district is 25.85 lakh out of which 20.71 lakh (80.12%) is rural population and
5.14 lakh (19.88%) is urban population. The total population of Parbhani district is
18.36 lakh out of which 12.66 lakh (68.95%) is rural population and 5.70 lakh
(31.05%) is urban population. The total population of Hingoli district is 11.70 lakh
out of which 9.99 lakh (85.38%) is rural population and 1.79 lakh (15.30%) is urban
population. The total population of Nanded district is 33.61 lakh out of which 24.47
lakh (72.81%) is rural population and 9.14 lakh (27.19%) is urban population. The
total population of Latur district is 54.54 lakh out of which 18.29 lakh (74.53%) is
rural population and 6.25 lakh (24.47%) is urban population. The total population of
Osmanabad district is 16.58 lakh out of which 13.77 lakh (83.05%) is rural population
and 2.81 lakh (16.95%) is urban population.
Thus, it can be found that, Aurangabad district has the highest i.e. 37.01 lakh
population and Hingoli district has the lowest i.e. 11.70 lakh population.
3.4 Socio-Economic Profile of Sample Customers
In a study of insurance like this, the customer of life insurance is the central
character. All the happenings are surrounded around the customers. The customers of
various age groups, the customers having different income level, the customers from
various occupational activities are classified in this section. This is important so as to
study the performance of SBI Life in this region. The researcher in this section
presented the socio-economic profile of the sample customers of bancassurance in
Marathwada region with select attributes of socio-economic conditions such as:
Gender, Age, Education, Occupation, Income Group, Location etc. This analysis is
based upon primary data.
Gender wise Classification of the Sample Customers
This is an important demographic characteristic of an individual. Considering

this the researcher has studied the Gender wise Classification of the Sample
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Customers of bancassurance of SBI in Marathwada region. The results are shown in
the following table.
Table No. 3.5
Gender wise Classification of the Sample Customers
Sr. No. Gender No. of Respondents %

1 Male 508 63.50
2 Female 292 36.50
Total 800 100.00
Source: Primary Data.
It can be seen from the above table that, out of the total 800 sample customers
of bancassurance of SBI in Marathwada region of Maharashtra, 508 (63.50%) are
Male whereas; 292 (36.50%) are Female.
Thus, it is found that, the majority i.e. 63.50% of the sample customers of
bancassurance of SBI in Marathwada region are Male.
Age wise Classification of the Sample Customers

this the researcher has studied the Age wise Classification of the Sample Customers
of bancassurance of SBI in Marathwada region. The results are shown in the
following table.
Table No. 3.6
Age wise Classification of the Sample Customers
Sr. No. Age Group No. of Respondents %

1 Below 25 Years 139 17.38
2 25 to 40 Years 347 43.38
3 40 to 50 Years 243 30.37
4 Above 50 Years 71 8.87
Total 800 100.00
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of bancassurance of SBI in Marathwada region of Maharashtra, 139 (17.38%) are of
the age group ‘Below 25 Years’; that of 317 (43.38%) are of the age group ’25 to 40
Years’, whereas; 243 (30.37%) are of the age group ’40 to 50 Years’ and 71 (8.87%)
are of the age group ‘Above 50 Years’.
bancassurance of SBI in Marathwada region are of the age group ’25 to 40 Years’.
Education wise Classification of the Sample Customers

this the researcher has studied the Education wise Classification of the Sample
Table No. 3.7
Education wise Classification of the Sample Customers
Sr. No. Education No. of Respondents %

1 Up to SSC 86 10.75
2 Under Graduate 258 32.25
3 Graduate 389 48.63
4 Other 67 8.37
Total 800 100.00
educated Up to SSC; that of 258 (32.25%) are Undergraduates, whereas; 389
(48.63%) are Graduates and 67 (8.37%) are having other technical education..
bancassurance of SBI in Marathwada region are Graduates.
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Occupation wise Classification of the Sample Customers

this the researcher has studied the Occupation wise Classification of the Sample
Table No. 3.8
Occupation wise Classification of the Sample Customers
Sr. No. Occupation No. of Respondents %

1 Business 292 36.50
2 Service 374 46.75
3 Professionals 85 10.63
4 Self Employed 49 6.12
Total 800 100.00
engaged in Business activity; that of 374 (46.75%) are engaged in Service, whereas;
85 (10.63%) are Professionals and 49 (6.12%) are Self Employed.
bancassurance of SBI in Marathwada region are engaged in Service.
Income wise Classification of the Sample Customers
Income criteria are the most important criteria of an individual. A person can
take decision to purchase a insurance policy if he had sufficient income. This is an
important demographic characteristic of an individual. Considering this the researcher
has studied the Income wise Classification of the Sample Customers of bancassurance
of SBI in Marathwada region. The results are shown in the following table.
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Table No. 3.9
Income wise Classification of the Sample Customers
Sr. No. Yearly Income No. of Respondents %

1 Below 5 Lakhs 238 29.75
2 5 to 7 Lakhs 314 39.25
3 7 to 10 Lakhs 171 21.37
4 Above 10 Lakhs 77 9.63
Total 800 100.00
from the income group ‘Below 5 Lakhs’; that of 314 (39.25%) are from the income
group ‘5 to 7 Lakhs’, whereas; 171 (21.37%) are from the income group ‘7 to 10
Lakhs’ and 77 (9.63%) are from the income group ‘Above 10 Lakhs’.
bancassurance of SBI in Marathwada region are from the income group ‘5 to 7
Lakhs’.
3.5 Banks in Marathwada
The researcher has in this section studied the No. of branches of State Bank of
Indian spread over 8 districts of Marathwada. District wise No. of branches of SBI is
presented in the following table.
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Table No. 3.10
No. of Bank Branches of SBI
Sr. No. District No. of Branches % to Total

of SBI Branches in
Marathwada
01. Aurangabad 108 29.35
02. Jalna 28 7.61
03. Beed 50 13.59
04. Parbhani 34 9.24
05. Hingoli 20 5.43
06. Nanded 67 18.21
07. Latur 28 7.61
08. Osmanabad 33 8.97
Total 368 100.00
Source: Annual Report of SBI, 2018.
It can be seen from the above table that,
The total No. of Branches of State Bank of India in Marathwada is 368, out of
which Aurangabad district has 108 (29.35%) branches of SBI, Jalna 28 (7.61%), Beed
50 (13.59%), Parbhani 34 (9.24%), Hingoli 20 (5.43%), Nanded 67 (18.21%), Latur
28 (7.61%) and Osmanabad 33 (8.97%).
Thus, it can be noted from the above table that, the highest i.e. 29.35% No. of
bank branches of SBI are in Aurangabad district, whereas, the lowest i.e. 5.43% No.
of bank branches of SBI are in Hingoli district.
3.6 Product Profile of Bancassurance in SBI
There are a number of life insurance products sold by State Bank of India
under the bancassurance. These products are of varies types, categories and nature.
There are a variety and range of life insurance products promoted by SBI under the
bancassurance such as products of single premium, regular premium and many more.
The researcher has studied these products with reference to their nature and other
aspects. This is presented in this section.
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State Bank of India offers various life insurance policies to its customers
according to their needs and investment capacity. The policies offered to the
customers are of investment type policies with best risk cover by its insurance nature.
The researcher has in this section presented the profile of the life insurance policies in
SBI Bancassurance.
1. Shubha Nivesh
2. Smart Income Protect
3. SBI Life Saral Pension Plan
4. Retire Smart
5. Smart Wealth Assure
6. Annuity Plus
7. Smart Scholar
8. Smart Money Back
9. Smart Elite
10. SBI Life – RiNnRaksha
11. SBI Return Guarantee Plan
12. SBI Life Smart Champ - Children’s Higher Studies
The details of these life insurance products are presented here.
1. Shubha Nivesh
Shubha Nivesh is the most popular life insurance policy product of bancassurance
in SBI. This is promoted by SBI Life. It is an excellent participating traditional
Savings Plan with an option of Whole Life cover. It will provide the customer
multiple benefits of wealth creation, protection, regular income and wealth
transfer. It is a perfect gift for one and his loved ones.
This plan protects the customer, their savings and comes with an option to leave a
portion of their wealth for their children/grandchildren. The customer may also
have the choice of taking benefits in the form of an income over a specified period
of his choice. This is a specially designed plan that enables customer to build not
only financial corpus but also provides them with complete protection through
additional riders wherein they may choose to enhance their life cover and
accidental risk cover.
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• A unique savings plan with flexibility of availing Whole Life Protection as an
add-on benefit.
• Numerous benefits including wealth creation, protection, regular flow of
income and wealth transfer.
• Flexibility to choose between Single or Regular premium payment.
• Additional rider benefits at a nominal cost.
• Option to receive the Basic Sum Assured at regular intervals over a stipulated
time period of 5/10/15/20 years
• Tax benefits as per prevailing norms under the Income Tax Act, 1961.
Endowment Assurance
The base plan is a traditional endowment plan with simple reversionary bonuses
which accrue till the end of the endowment term. The Sum Assured with all
accrued bonuses will be paid on death during the endowment term or on survival
till the end of the endowment term.
Whole Life Endowment

Before the commencement of the contract customer also have an option to extend
their cover for the Whole Life (or 100 years of age). The option gives them an
Endowment + Whole Life plan whereby, in addition to the Endowment Plan
benefits mentioned above customer are entitled to an additional amount equal to
the Sum Assured payable on death after the completion of the endowment term or
on survival till age 100 years.
Deferred Maturity Payment

Customer can use this option to get income at regular intervals. At the end of the
endowment term they can either withdraw the full Sum Assured along with
accumulated bonuses or they can withdraw only the bonus, leaving the basic Sum
Assured to be drawn as income at regular intervals over a stipulated time period of
5,10,15 or 20 years.
Surrender Value/Paid Up Value

For Regular Premium policies, if premiums have been paid for at least 3 full
years, the policy will acquire a Surrender Value. Surrender will be allowed after 3
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years and 1 year from the start of the policy for Regular Premium policies and
Single Premium policies respectively.
The Guaranteed Surrender Value in case of Regular Premium policies will be
equal to 30% of the basic policy premiums paid, minus the first year's premium.
For Single Premium policies the Guaranteed Surrender Value will be 80% of the
Single Premium (exclusive of service tax) in the 2"" and 3rd year of the policy and
90% of the Single Premium (exclusive of service tax) thereafter. Any extra
premiums paid shall be excluded. A cash value of the bonuses allocated will also
be added.
Policy Loans
Loans will be available after the policy acquires Surrender Value. The rate of
interest applicable on the loans will be declared by the Company from time to
time.
Rebates
Large Sum Assured rebates are available as discounts on the basic premium based
on the following slabs. In case of Regular Premium, it applies across all premium
modes.
No benefit will be payable in respect of any condition arising directly or indirectly

from, through or in consequence of the following exclusions and restrictions.
2. Smart Income Protect
This is yet another more popular life insurance product offered by

bancassurance in SBI. Smart Income Protect is a Savings Plan with added
advantage of Life Cover and Regular Cash Inflow at the time when customer
need. It is a Participating Traditional Plan where life assured continue to pay
his/her Regular Premiums over a period of 5, 10 or 15 years. Thereafter payout
Period starts, where life assured get Guaranteed Regular Annual Payouts*
(conditions apply) over a period of 15 years. This plan provides Insurance Cover
and Regular Income.
Customer can choose Policy Term from 5, 10 or 15 years Premium Paying
Term will be same as Policy Term chosen by customer. Guaranteed Annual
Payouts* (conditions apply) of 11 % of Sum Assured/Paid up Sum Assured over a
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period of 15 years after Maturity Vested Reversionary Bonuses plus Terminal
Bonus, if any, will be paid as lump sum at the end of the Policy Term.
Maturity Benefit
Smart Income Protect offers Customer the following benefits:

Maturity Benefit as lump sum
Customer gets Vested Reversionary Bonuses Plus Terminal Bonus, if any, at
Maturity.
Maturity Benefit in installments
Customer will be paid yearly payouts equal to 11 % of Basic Sum Assured for
next 15 years after Maturity. This period of 15 years is policy Payout Period. The
first installment will be paid at the end of first year during the Payout Period. In
case of death during the Payout Period, all future payouts will be paid in lump
sum to the Nominee or legal heir.
Death Benefit
In the unfortunate event of death during the Policy Term, life assureds’ Nominee
will receive Basic Sum Assured Plus Vested Reversionary Bonuses plus Terminal
Bonus, if any. In case of death during the Payout Period, all future payouts will be
paid to the Nominee or legal heir in lump sum immediately.
Bonus under the Plan
Customer will receive the Vested Reversionary Bonuses plus Terminal Bonus, if
any, on Survival at the end of the Policy Term.
Other Benefits
Paid Up Value:
The policy acquires Paid-Up Value and / or Surrender Value only if at least two
year's premiums have been paid.
Maturity Benefit under a Paid-Up Policy:
Vested reversionary bonuses and terminal bonus, if any, will be paid at the end of
the policy term. 11 % of the paid-up sum assured will be paid at the end of each
year during the payout period. The first installment will be paid at the end of first
year during the payout period. In case of death during the payout period, all future
payouts will be paid to the nominee or legal heir in lump sum immediately.
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In case Paid-Up Policies where each Maturity Benefit installment is less than
1000, all future payouts will be paid in lump sum immediately paid.
Death Benefit under a Paid-Up Policy:
On death during the policy term, Paid-up Sum Assured plus Vested Reversionary
Bonuses and Terminal Bonus, if any will be paid to the Nominee or legal heir
gets.
Participation in profits
The policy shall participate in the profits arising out of the Company's 'With
Profits' Life Insurance business. It gets a share of the profits emerging from this
business in the form of Bonuses. Simple Reversionary Bonuses would be declared
as a percentage rate, which apply to the Basic Sum Assured in respect Basic
Policy Benefit (not of Riders).
Nomination & Assignment
Provided the policyholder is the Life Assured, he / she may, at any time before the
policy matures for payment, nominate a person or persons as per Sec 39 of the
Insurance Act 1938, to receive the policy benefits in the event of his/her death.
The Policyholder can also assign the policy to a party by filing a written notice to
insurance company. Only the entire policy can be assigned and not individual
benefits or any part thereof.
Tax Benefits
There is No. of Tax Benefits of this policy, these as follows:
U/s 80C of the Income Tax Act 1961 on Insurance premiums.
U/s 10(1 OD) of the Income Tax Act 1961 on Policy maturity / death proceeds
under the policy.
U/s SOD, for Policy premiums paid for Critical Care 13 Non Linked Rider.
Tax deduction under Section 80C is available.
3. SBI Life Saral Pension Plan
This is also one of the most popular insurance products of bancassurance in SBI.
This is a plan for those who wish to secure their old age life with pension benefits.
SBI Life - Saral Pension Plan, an Individual, Participating, Non Linked,
Traditional Pension Plan, which offers complete safety from market volatility, by
providing a secure future and a joyful retirement.
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Premiums are paid during the chosen policy term. On vesting, the vesting proceed
will be the Sum Assured plus vested simple reversionary bonus plus terminal
bonus, if any. This benefit can be used to purchase an immediate annuity on
vesting or customer may defer the purchase of annuity to a later date. While
purchasing annuity customer may commute a part of the amount as per the then
income tax rules.
On death, the nominee will get the higher of total premiums paid accumulated
at an interest rate of 0.25% p.a. compounding annually plus the vested simple
reversionary bonus plus terminal bonus, if any or 105% of all total premiums paid.
In case, Preferred Term rider is chosen, rider Sum Assured will also be paid to the
nominee.
Plan Highlights
The highlights of this plan are as follows:
Guaranteed Bonus: Guaranteed Simple Reversionary Bonuses for first 5 years;
@ 2.50% for first three years and @2.75% for the next two years, of the Sum
Assured. Guaranteed bonus will be applicable only to in-force policies.
Vesting (Maturity) Benefit: Sum Assured plus vested Simple Reversionary
bonuses plus terminal bonus, if any. The sum assured carries an implicit
guaranteed interest rate of at least 0.25% pa compounding annually on the total
premiums.
Death Benefit: Higher of total premiums paid accumulated at an interest rate of
0.25% p.a. compounded annually plus vested simple reversionary bonus plus
terminal bonuses, if any or 105% of total premiums paid.
Life Cover:
Option of additional life cover through SBI Life - Preferred Term Rider.
Flexibility:
One can defer the vesting date up to age of 70 years or extend the
accumulation/deferment period of policy.
Guaranteed Bonus
This product offers a guaranteed bonus for first 5 years; @ 2.50% of the Sum
Assured for first three years and @ 2.75% of the Sum Assured for the next two
years. Thereafter, reversionary bonuses will be declared based on the statutory
valuation.2.50% pa of Sum Assured 2.75% pa of Sum Assured.
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Vesting Benefits
On attaining the vesting age, the vesting benefit proceed will be the higher of Sum
Assured or total premiums paid accumulated at an interest rate of 0.25% pa
compounding annually plus Vested Simple Reversionary bonus plus Terminal
bonus, if any. Customers have the following options:
To purchase immediate annuity from the entire policy proceeds

• To purchase immediate annuity with an option to commute up to one-third of
the policy proceeds as per current Income Tax rules
• To utilize the entire proceeds to purchase a Single premium deferred pension
product
• To extend the accumulation period or defer the vesting date, provided
Customer are below age of 55 years on vesting. The maximum extended
period will be up to age 70 years
Death benefit
In an event of death of the life assured, the death benefit proceed higher of total
premiums paid accumulated at an interest rate of 0.25% p.a. compounded annually
plus vested simple reversionary bonus plus terminal bonuses, if any, or 105% of
total premiums paid will be paid to the nominee. The nominee will have the
following options:
• To receive entire proceeds as lump sum
• Utilize the entire proceeds of the policy or part thereof for purchasing an
annuity at the then prevailing rate. The annuity should be purchased from SBI
Life only. The annuity rates available for the purchase of this annuity will be
based on the prevailing annuity rates on the immediate annuity product.
Surrender Value
Surrender will be allowed provided three years' full premiums have been paid in
case of regular premium and any time during the policy term, in case of single
premium policy.
The Non-Guaranteed (Special) Surrender Value (SSV) will be based on an
assessment of the past financial and demographic experience of the product /
group of similar products and likely future experience and will be reviewed from
time to time depending on changes in internal and external experience and likely
future experience. This surrender value will depend on the term of the policy, the
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number of years for which premiums have been paid and the duration elapsed at
the time of surrender.
On surrender, the higher of the Non-Guaranteed SSV and the GSV will be paid.
Surrender Value can be used as per following options:
• To purchase immediate annuity from the entire policy proceeds.
• To purchase immediate annuity with an option to commute up to one-third of
the total surrender value as per current Income Tax rules.
The entire proceeds can be used to purchase a single premium deferred pension
product
Paid-up Value
• For regular premium policies, the policy acquires a paid-up value only if three
year's full premium has been paid.
• The guaranteed bonus rates will not be applicable to Paid-up policies.
Participation in profits
The policy shall participate in the profits arising out of the Company's 'with
profits' pension business. It gets a share of the profits emerging from this business
in the form of bonuses. Simple Reversionary Bonuses would be declared as a
percentage rate, which apply to the Sum Assured in respect of the basic policy
benefit (not of rider). The reversionary bonuses are guaranteed to be @ 2.5% of
Sum Assured for first 3 years, and @ 2.75% of Sum Assured for first next 2 years.
Thereafter, reversionary bonuses will be declared based on our long term view of
investment returns, expenses, mortality and other experience.
Optional Benefit
SBI Life - Preferred Term Rider
Tax Benefits*
• Premium paid under this policy is eligible for tax deduction u/s 80CCC of the
Income Tax Act.
• On vesting, the policy holder can currently commute up to one-third of the
policy proceeds as per Income Tax Act, 1961. This commuted value is
exempted from tax under section 10(1 OA) (iii) of the Income Tax Act 1961.
The non-commuted pension amount taken in the form of immediate annuity is
currently taxable.
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• Under section 10(1 OD) of the Income Tax Act 1961, the lump sum death
proceeds are not taxable.
Revival
• Customer may revive the lapsed policy by making a written application within
a period of 2 years from the due date of the first unpaid premium.
Grace Period
The customer is allowed grace period of 30 days from the premium due date for
yearly/half-yearly premium and 15 days for monthly premium. The policy will
remain in force during grace period and will lapse at the end of grace period, if no
premium is paid.
4. Retire Smart
Many people underestimate how much they need to save for retirement, because
they:
• Misjudge their post-retirement needs.
• Overestimate their ability to work after retirement.
• Substantially underestimate their life expectancies.
Thus, for creating a retirement corpus systematic and disciplined investment is
required during one's earning years. Investing now is the best way to ensure that
Customer have adequate income in their retirement years.
SBI Life - Retire Smart - a retirement plan that helps Customer to save
systematically and to build corpus for their retirement. It is a non-participating
unit linked pure pension plan, which guarantees 101 % of all premiums paid by
the customer on Maturity/Vesting. Thus, the downside risk in the market is
protected to a great extent.
This is a Pension Product. Benefits by way of Surrender, complete withdrawal
or Maturity/ Vesting will be available in the form of annuities, except to the extent
of commutation of such benefits as allowed under the Income Tax Rules'.
Key Benefits of Retire Smart
Fund Value is boosted, through guaranteed additions of up-to 210%* of
Annual Premium. Guaranteed Additions are paid regularly for the Policy Term -
15 years or more, starting from the end of the 15th Policy Year and at the end of
every year thereafter, till the end of Policy Term. Get Terminal Additions of 1.5%
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of Fund Value, at Maturity/ Vesting or on earlier death. Customer need not to
worry about their investments, as the same are managed on their behalf by SBI
Life, through 'Advantage Plan'. 'Advantage Plan' guarantees a minimum of 101 %
of all premiums paid at Maturity/Vesting. Guarantees a minimum of 105% of all
premiums paid on earlier death.
Death Benefit:
In the unfortunate event of death of the Life Assured while the policy is in-
force, Higher of (Fund Value Plus Terminal Addition or 105% of total premiums
paid till the time of death), is payable to the eligible beneficiary, as on the date of
intimation of the claim to the company.
The beneficiary can use the death benefit amount, as per the below mentioned
options:
• Receive the entire proceeds as lump sum.
• Utilize the entire proceeds of the policy or part thereof for purchasing an
annuity, at the then prevailing rate, provided eligibility criteria of the approved
immediate annuity product is met (e.g. minimum annuity amount or age criterion).
Maturity/Vesting Benefit:
On completion of Policy Term, customer will receive the Higher of (Fund Value
Plus Terminal Addition or 101% total premiums paid), provided the policy is in
force. Customer will have the following options on Maturity/Vesting:
• To purchase immediate annuity, from the entire policy proceeds.
• To purchase a single premium deferred pension product, from the entire
policy proceeds.
• To purchase immediate annuity with an option to commute up-to one-third
of the policy proceeds, as per current Income Tax rules.
• To extend the accumulation period or defer the Vesting Date, provided
Customer are below age of 55 years at Vesting. The maximum extended
period will be up to age 80 years.
Additional Features
The additional benefits of this policy can be stated as follows:

Tax Benefit:
Premiums paid under the Policy are eligible for tax deduction u/s 80CCC of the
Income Tax Act, 1961. On Vesting or on Surrender/ Discontinuance, the
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policyholder can currently commute up to one third of the policy proceeds as per
the Income Act Tax, 1961. This commuted value is exempted from tax under
section 10(1 OA) (iii) of the Income Tax Act, 1961.
Free Look Period:
Customer can review the terms and conditions of the policy within 15 days for
policies sourced through any channel mode other than Distance Marketing and 30
days for policies sourced through Distance Marketing, from the date of the receipt
of the Policy Document. If Customer disagrees with any of those terms and
conditions; they have the option to return the policy stating the reasons for their
objection.
If premium is discontinued during first five Policy Years
Your Fund Value as on that date will be disinvested and credited to Discontinued
Policy Pension Fund, net of relevant discontinuance charge.
➢ If you Revive the policy within 2 years time then, Revival procedure as
stated in Revival conditions would be applicable.
➢ If you do not Revive within the Revival Period, then Section -
'Discontinuance/ Surrender Compulsory Options' would apply at the end of
the Revival Period or on the 1st business day of the 6th Policy Year,
whichever is later.
If premium is discontinued after first 5 Policy Years
➢ During the Revival Period, your policy is deemed to be in force, as per terms
and conditions of the policy. FMC, Guarantee
➢ Charge, Policy Administration Charges would continue to be deducted.
➢ If you Revive the policy, then the Revival procedure as stated in Revival
conditions, would be applicable.
➢ If you do not Revive within Revival Period, then Section - 'Discontinuance/
Surrender Compulsory Options' would apply at then do the Revival Period.
➢ If you choose to Surrender the policy during the Notice Period, or we do not
receive any response from you during notice period, then:
➢ Your Fund Value as on that date will be disinvested and credited to
Discontinued Policy Fund, net of relevant discontinuance charge.
➢ Section - 'Discontinuance / Surrender Compulsory Options' would apply at
the first working day of 6th Policy Year.
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➢ If you die before the payment of discontinued policy value, then the same is
paid to the Nominee/ Beneficiary immediately.
If premium is discontinued after first Policy Years
Section - 'Discontinuance/ Surrender Compulsory Options' would apply
immediately.
Revival: We offer you a Revival Period of 2 years from the date of
discontinuance. You can Revive your policy, during Revival Period, by paying all
due premiums. Revival is subject to the applicable terms and conditions and
underwriting acceptance. The underwriting decision would be communicated to
you, post which only your cover would re-commence.
If you opt to Revive the policy within Revival Period, then the Discontinued
Policy Pension Fund will be dis-invested and the discontinuance charge,
previously deducted, would be added back to this dis-invested fund amount.
Company will automatically shift the resultant fund in the Advantage Plan. Units
will be allocated based on the NAV as on the date of such Revival. Policy
Administration Charges and Premium Allocation Charges for the period, starting
from the date of first unpaid premium, will be deducted.
If premium is discontinued after first five Policy Years
Due premiums paid by you, net of charges would be invested in the Advantage
Plan. Units will be allocated based on the NAV as on the date of such Revival.
Premium Allocation Charges for the period, starting from the date of first unpaid
premium, will be deducted. Any due Guaranteed Additions are added at the time
of Revival.
➢ Paid-up: You can choose to convert your policy to paid-up, subsequent to the
discontinuance of premium after 5 years. During the period in which the
policy remains paid-up, all the charges except Premium Allocation Charge,
would be deducted.
➢ If the policy is discontinued after the 1 st five Policy Years and is in a paid up
state or is in the Revival Period, and the Fund Value at any time falls below
one Annual Premium, the policy will be terminated and the Fund Value
available then would be paid to the policyholder.
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➢ Surrender: You can Surrender your policy at any time during the Policy
Term. Once policy is Surrendered, there will be no option to Revive the
policy.
➢ If Surrender is requested during the first 5 Policy Years, then the lock-in
condition applies.
➢ Your Fund Value, after deduction of applicable Discontinuance Charge (if
any), will be transferred to the 'Discontinued Policy Pension Fund'.
➢ You will earn a minimum interest rate as stipulated by IRDA, from time to
time on this Fund.
➢ Fund Management Charge of Discontinued Policy Pension Fund shall be
deducted. No other charge will be deducted.
➢ 'Discontinuance/ Surrender Compulsory Options' would apply
➢ If the Surrender is requested any time after completion of 5th Policy Year,
then we will disinvest your units in all the funds on the day we receive your
request and 'Discontinuance / Surrender Compulsory Options' would apply.
Discontinuance/Surrender Compulsory Options
When a policy is not Revived, or on Surrender/ complete withdrawal, or on option
not being exercised during the Notice Period leading to complete withdrawal, you
have to opt from the below mentioned options. These options would be eligible
only after completion of first 5 Policy Years.
➢ To purchase Immediate Annuity, at the then prevailing rate, from the entire
policy proceeds.
➢ To purchase a Single Premium deferred pension product, from the entire
policy proceeds.
➢ To purchase Immediate Annuity with an option to commute to the extent
allowed as per Income Tax Act, currently up-to one-third of the total
Discontinuance/Surrender Value.
Nomination
Nomination will be allowed under the plan as per Sec 39 of Insurance Act, 1938.
Assignment
Assignment is not allowed under the plan.
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Suicide Exclusion
If the Life Assured, whether sane or insane, commits suicide within one year from
the date of issue of the policy or from the date of Revival of the policy, the policy
shall be void. In such event, the Fund Value as on date of intimation of death to
the Company, shall be payable and all benefits under the policy will cease.
Switching and Re-direction is not applicable under the plan. Partial Withdrawals
are not allowed under the plan.
Risk borne by the Policyholder
In this policy, the investment risk in the investment portfolio is borne by the
policyholder.
Unit Linked Life Insurance Products are different from the traditional
insurance products and are subject to risk factors.
The premium paid in Unit Linked Insurance policies are subject to investment
risks associated with capital markets and the NAVs of the units may
go up or down based on the performance of fund and factors influencing the
capital market and the insured is responsible for his/her decisions.
SBI Life Insurance Company is the name of the Insurance Company and
SBI Life - Retire Smart is only the name of the unit linked life insurance contract
and does not in any way indicate the quality of the contract, its future prospects or
returns Please know the associated risks and the applicable charges, from your
insurance agent or the intermediary or Policy Document of the insurer. The
various funds offered under this contract are the names of the funds and do not in
any way indicate the quality of these plans, their future prospects or returns.
Past performance of the Fund Options are not indicative of future
performance
All Benefits payable under this Policy are subject to tax laws and other
fiscal enactments in-effect from time to time, please consult your tax
advisor for details.
The Company reserves the right to suspend the Allocation, Reallocation,
Cancellation and /or Switching of units under extraordinary circumstances such as
extreme volatility of assets, extended suspension of trading on stock exchange,
natural calamities, riots and other similar events or force majeure circumstances,
subject to approval from IRDA.
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Prohibition of Rebates
Section 41 of Insurance Act 1938 states:
Section 41 of Insurance Act 1938 states:
1) No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person to take or renew or continue an insurance in respect
of any kind of risk relating to lives or property in India, any rebate of the
whole or part of the commission payable or any rebate of the premium shown
on the policy, nor shall any person taking out or renewing or continuing a
policy accept any rebate, except such rebate as may be allowed in accordance
with the published prospectuses or tables of the insurer:
Provided that acceptance by an insurance agent of commission in
connection with a policy of life insurance taken out by himself on his own life
shall not be deemed to be acceptance of a rebate of premium within the
meaning of this sub section if at the time of such acceptance the insurance
agent satisfies the prescribed conditions establishing that he is a bonafide
insurance agent employed by the insurer.
2) Any person making default in complying with the provisions of this section
shall be punishable with fine which may extend to five hundred rupees.
Non-Disclosure
Section 45 of Insurance Act, 1938 states:
No policy of life insurance effected after the coming into force of this Act
shall, after the expiry of two years from the date on which it was effected, be
called in question by an insurer on the ground that a statement made in the
proposal for insurance or in any report of a medical officer, or referee, or friend of
the insured, or in any other document leading to the issue of the policy, was
material matter or suppressed facts which it was material to it suppressed facts
which it was material to disclose. Provided that nothing in this section shall
prevent the insurer from calling for proof of age at any time if he is entitled to do
so, and no policy shall be deemed to be called in question merely because the
terms of the policy are adjusted on subsequent proof that the age of the life
insured was incorrectly stated in the proposal.
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Surrender the Policy.
Convert the policy into paid-up policy (option available only when 5 years full
premium has been paid).
5. Smart Wealth Assure
This is also a very popular product of life insurance by SBI Life. It is a Single
Premium, Unit linked, non-participating, life insurance product. In this policy, the
investment risk in investment portfolio is borne by the policyholder. This Plan has
many power packed features which takes care of Customers financial needs.
The single premium paid by customer, after deducting the Premium Allocation
Charge is invested in the Fund(s) as chosen. Customer can choose to invest in 4
Funds - Return Guarantee Fund, Bond Fund, Equity Fund and P/E Managed Fund.
Key Benefits of this Policy:
The key benefits of this policy can be listed as follows:
1. Option to choose a mix of Funds providing Guaranteed Return and Market
Linked Returns.
2. Guaranteed Return provided through Return Guarantee Fund (RGF) which
guarantees a Minimum Pre-specified NAV.
3. Apart from Minimum Guarantee, any upside in the RGF will also be paid to
Customer.
4. Market Linked Returns provided through 3 Funds - Bond Fund, Equity Fund
& P/E Managed Fund to give Customer the best possible returns
5. Pay only once and get the benefits throughout the Policy Term
6. Liquidity through Partial Withdrawal(s)
7. Option to customize the product with Accidental Death Benefit Option
8. An excellent investment cum insurance plan
Maturity Benefit
On survival of the Life Assured up to maturity, the Fund Value shall be paid in a
Lump Sum.
If the Policy Term is such that the maturity date is the same as the termination
date of RGF, then the Fund Value at maturity will be:
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• Fund Value at the prevailing NAV as on date of Maturity for the Market
Linked Return Funds
Plus
• Higher of the Fund Value at the minimum pre-specified guaranteed NAV or
at the prevailing NAV for the RGF.
• If the Policy Term is such that the maturity date is later than the termination
date of RGF, the maturity value is the total Fund Value at maturity.
Death Benefit:
Higher of the Fund Value or Sum Assured is payable; with a minimum of 105%
of the Single Premium paid. Sum Assured and amount equal to 105% of the
Single Premium paid will be reduced to the extent of Partial Withdrawals made in
the last 24 months for age at death below 60 years and for age at death 60 years &
above all Partial Withdrawals made from 58 years onwards.
Accidental Death Benefit:
If Customer have chosen the Accidental Death Benefit Option, the benefit is
payable in Lump Sum.
Partial Withdrawals:
We give Customer flexibility to withdraw their money from the 6th Policy Year
onwards or on attainment of age 18 by the Life Assured whichever is later.
Minimum Partial Withdrawal amount allowed is Rs. 5,000 (in multiple of Rs.
1,000). Maximum Partial Withdrawal allowed is up to 20% of Fund Value as on
withdrawal request date.
Subsequent to a Partial Withdrawal at anytime during the Policy Term, if the
Fund Value is not sufficient to recover the charges, the Policy will be terminated
immediately and the Fund Value without deduction of any charges will be paid to
Customer. All rights and benefits under the Policy will automatically cease
thereafter.
NAV guarantee does not apply to the Partial Withdrawals made. On
termination of RGF, the remaining number of units would have the NAV
guarantee.
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6. Annuity Plus
The Annuity Plus is also the most popular product of SBI Life. It is a non-linked,
non-participating, general annuity plan. The general features of this plan can be
stated as follows:
Life Annuity (single Life):
The annuity payout will continue at a guaranteed rate, through-out the life of the
annuitant. As an annuitant, Customer may choose any of the following life annuity
options.
a) Lifetime Income
• Annuity is payable at constant rate throughout the life of the Annuitant.
• On death of the annuitant, all future annuity payouts cease immediately.
b) Lifetime Income with Capital Refund
• Annuity is payable at a constant rate throughout the life of the Annuitant.
• On death of the Annuitant, all future annuity payouts cease immediately
and the premium is refunded to the nominee.
c) Lifetime Income with Capital Refund in Parts
• At the end of seven years, 30% of the premium is paid to the annuitant on
survival.
• On death of Annuitant –
• Death beyond seven years: We will refund 70% of the premium to the
nominee.
• Death within seven years: We will refund 100% of the premium to the
nominee.
d) Lifetime Income with Balance Capital Refund
• On death of the Annuitant, we will refund the balance capital which will
be equal to the premium paid less sum total of annuities paid. If this
balance is not positive, then no death benefit is payable.
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e) Lifetime Income with Annual Increase of 3% or 5%
• Annuity payouts increases at a simple rate 3% or 5% p.a. for each
complete year as per the option exercised and is payable throughout the
life of the annuitant.
• On death of the annuitant, all future annuity payouts cease immediately.
f) Lifetime Income with Certain Period of 5, 10, 15 or 20 years.
Annuity is payable at a constant rate for a fixed period of 5, 10, 15 or 20 years,
as per the option exercised and thereafter annuity is payable throughout the
life of the Annuitant.
Key Features
Key features of this plan can be listed as follows:
1. Freedom to choose from the complete range of annuity options.

2. Enjoy regular income (annuity payouts) from as early as age 40 years.
3. Option to have annuity payouts till Customer or Customers partner’s lifetime.
Customers’ partner could be spouse, children, parents, parents-in laws or
siblings.
4. Option to choose frequency of annuity payout – monthly, quarterly, half
yearly or yearly.
5. Benefit of higher annuity rates for large premium.
6. Additional Rider benefit.
7. Flexibility to advance Customer annuity payout.
8. Return of premium or balance premium.
9. Options for banks/financial institutions to purchase immediate annuities in
respect of annuity payments for their commitments to the homeowners under
the reverse mortgage schemes.
7. Smart Scholar
This is a very popular life insurance policy offered by bancassurance in SBI. This
is a Unit Linked Child cum Life Insurance plan available for parents (Life
Assured) who have a child aged between 0 -17 years. Customer can pay premiums
for a limited period whereas the policy benefits would continue till child becomes
an adult. The money of the customer can be invested in any of the available Nine
Funds, as per Customers choice and risk appetite. At the end of the term their
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accumulated Fund Value can be used for their child's higher education, marriage,
financial security or anything else, while withdrawals facility helps Customer to
meet unplanned expenses.
Protection for child's future in absence of parent:
In case of unfortunate death of customer due to any reason other than accident:
• Benefit 1: SBI Life pay a lump sum benefit equal to maximum of Sum
Assured and 105% of all basic premiums paid as on the date of intimation of
death claim. If on the date of intimation of death, the Sum Assured is less
than 105% of all premiums paid, the amount in excess of the Sum Assured
will be paid from Customers Fund by disinvestment of units.
• Benefit 2: It continues to pay Customers future premium(s) on Customers
behalf (inbuilt Premium Waiver Benefit) and the accumulated Fund Value
will be paid at maturity.
• In case of Customers unfortunate accidental death or accidental total and
permanent disability SBI Life pays:
- Additional benefit equal to Accident Sum Assured
- The Accident Benefit and Premium Payor Waiver Benefit are not available
in the Single Premium policies.
Benefits of Smart Scholar Plan:
Benefits of this plan can be listed as follows:
1. In the event of unfortunate death of Life Assured, a lump sum benefit equal to
higher of the Sum Assured or 105% of all premiums paid till date of death will
be payable.
2. If on the date of death, the Sum Assured is less than 105% of all premiums
paid, the amount in excess of the Sum Assured will be paid from Customers
Fund by disinvestment of units.
3. In the event of death of child, no Sum Assured is payable. Life Assured will
inform the Company regarding the event. In such case he/she can either
continue the policy or terminate the contract. In case of termination of
contract, the Fund Value (without any Surrender Charges), will be payable.
4. If both the Life Assured and the child die during the term of the policy, the
policy will be automatically terminated, and all due benefits will be paid along
with the Fund Value.
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Maturity Benefit:
On completion of the Policy Term, Maturity Benefit i.e. the Fund Value shall be
paid to beneficiary in a lump sum or as per settlement option, if chosen.
Settlement Option:
Settlement option helps to get periodic installments of maturity proceeds within
five years (maximum) from the date of maturity. During the settlement period, the
Fund Value will remain invested in the existing Funds as per the prior allocation.
The investment risk is continued to be borne by Policyholder.
Additional In-built Benefits:

Additional in-built benefits of this plan are as follows:
1. Accident Benefit:
This in-built benefit provides an additional benefit for Accidental Death or
Accidental Total Permanent Disability. In this benefit, the Accident Sum Assured
is equal to the Base Sum Assured, subject to an overall cap of Rs. 50 lakhs.
2. Premium Waiver Benefit (PPWB):
There is also an in-built Premium Waiver Benefit under this product whereby SBI
Life Insurance Company will pay all the future premiums at respective future
premium dates. Subsequently on maturity Customers child will be entitled to the
Fund Value to meet his/her needs.
Flexible Options Switching Option:
Customer can switch his investments among the available 9 Funds to suit his/her
changing investment needs. Minimum Switch amount is Rs. 5,000. Two Switches
are allowed free of charge in a Policy Year.
Premium Redirection Option:
Premium Redirection facility is allowed from 2nd Policy Year onwards. One
premium redirection request is allowed free of charge in a Policy Year.
Partial Withdrawals are available from the 6th Policy Year onwards.
Tax Benefit:
Premium paid under this policy is eligible for tax deduction u/s 80C of the Income
Tax Act, 1961. The benefits under this plan are tax exempt u/s 10 (10D) of the
Income Tax Act, 1961. Service Tax and education cess shall be charged extra as
per applicable rates. Please note that all benefits payable under the policy are
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subject to tax laws and other financial enactments as they may exist from time to
time.
Free Look Period:
Customer can review the terms and conditions of the policy, within 15 days from
the date of the receipt of the Policy Document and where Customer disagree with
any of those terms and conditions; Customer have the option to return the policy
stating the reasons for customer’s objection.
8. Smart Money Back
Smart Money Back is a savings plan with added advantage of Life Cover and cash
inflow at regular intervals. It is participating traditional money back plan, meeting
Customers various financial obligations at crucial junctures by its wide range of
Policy Terms. Regular payments of Survival Benefits are made at different
durations during the Policy Term. In the unfortunate event of death at any time
within the Policy Term, Customers nominee would receive the full Sum Assured
plus Simple Reversionary Bonus & Terminal Bonus (if any), irrespective of
Survival Benefits already paid
Key Highlights
Money Back options specially tailored to suit Customers requirements Guaranteed
fixed cash inflows which can meet their various financial obligations Guaranteed
Survival Benefit of 110% to 125% of Sum Assured paid till maturity Rebate on
Large Sum Assured
Customize Customers coverage through the wide range of additional benefits -
Accidental Death Benefit Rider, Accidental Total Permanent Disability Rider,
Term Assurance Rider and Critical Care 13 Non-Linked Rider.
Survival Benefits Available under Different Options
Customer will receive Guaranteed Survival Benefits at regular intervals during the
Policy Term. In addition, Simple Reversionary Bonus will be paid with the last
Survival Benefit declared during the Policy Term. This helps Customer to meet
Customers financial obligation at crucial junctures.
9. Smart Elite
Smart Elite plan is a Unit Linked Life Insurance Plan which gives flexibility to
pay premium(s) for limited term or pay a Single Premium, with the freedom to
stay invested and protected for the long term. Customer need to select Premium
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Payment Term, Policy Term and Premium Amount. Customer also need to select
the Sum Assured Multiple for Life Cover and Plan Option for protection as per
Customers life stage and requirement. The options available for protection are
Gold Option and Platinum Option giving Customer choice of higher of Sum
Assured or Fund Value or both, respectively. One of these options has to be
chosen at the outset of policy and cannot be changed during the policy term. The
premium amount is invested in Funds of Customers choice which gives Customer
market related returns.
The Smart Elite policy the investment risk in investment portfolio is borne by the
policyholder.
Benefits of SBI Life- Smart Elite:

In case of unfortunate event of death of the Life Assured, the beneficiary will
receive following benefit:
For Gold Option: Higher of Fund Value or Sum Assured is payable; with a
minimum of 105% of total premiums paid as on the date of intimation of the death
claim.
For Platinum Option: Fund Value plus Sum Assured is payable; with a
minimum of 105% of total premiums paid as on the date of intimation of the death
claim.
In-built Benefit: Accidental Death and Accidental Total and Permanent
Disability (Accident Benefit).
This is an in-built benefit. This benefit provides an additional benefit for
Accidental Death or Accidental TPD. The benefit would be equal to Basic Sum
Assured, subject to an overall maximum of Rs. 50 Lakhs for this plan. This
Accident Benefit shall be payable only once, i.e. in the event of death or disability
whichever occurs first.
Maturity Benefit:
lump sum.
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Switching Option:
Customer can switch their investments among the available 6 Funds to suit theirr
changing investment needs. Minimum Switch amount is Rs. 5,000. Two Switches
are allowed free of charge in a Policy Year.
Premium Redirection:
Premium Redirection facility is allowed from 2ntl Policy Year onwards. One
premium redirection request is allowed free of charge in a Policy Year. A charge
of Rs. 100 will be levied per redirection request in excess of free redirection
request in the same Policy Year. Unused redirections cannot be carried forward.
Change in Sum Assured Multiplier Factor:
If Customers personal and/or financial circumstances change and Customer wish
to alter their insurance plan to suit their new requirements, then they have the
flexibility of changing their Sum Assured multiplier factor (SAMF), subject to the
limits provided in the product at the time of such change request.
• Customers have the option to change the SAMF at each policy anniversary
date starting from the 6th Policy Year.
• Such flexibility to change SAMF can be allowed provided all due regular
premiums have been paid and the Company has been intimated in writing at
least 2 months before the policy anniversary.
• Partial Withdrawals are available from the 6thPolicy Year onwards.
• One free Partial Withdrawal in a Policy Year is allowed. A maximum of 2
Partial Withdrawals can be made in one Policy Year and not more than 5
Partial Withdrawals are allowed in entire Policy Term in case of Policy Term
10 years or below and 10 Partial Withdrawals for Policy Term above 10 years.
Tax Benefit:
Premium paid under the basic policy is eligible for tax deduction u/s 80C of the
Income Tax Act, 1961. The benefits under this plan are tax exempt u/s 10 (10D)
of the Income Tax Act, 1961. Service Tax and education cess shall be charged
extra as per applicable rates. Please note that all benefits payable under the policy
are subject to Tax Laws and other financial enactments as they may exist from
time to time.
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10. SBI Life – RiNnRaksha
It is a group credit life insurance plan. This plan can be taken by people who
borrow loans from SBI Bank. I help to protect their families from the
repayment liability. This plan provides coverage for different types of loans. It
offers death benefit, surrender benefit and tax benefit to the customers. It can
also useful to provide to cover those loans which have floating rate of interest.
It covers the life of a maximum of 2 co-borrowers along with primary
borrower. Additional riders like Accidental Total and Permanent Disability
Benefit Rider can be attached to the plan.
In case of disability/death of the policy holder, RiNnRaksha Plan provides
protection from debts. Such debt includes various types of loans such as car
loan, housing loan, education loan, personal loan and agricultural loan. Under
this policy people allowed to choose the loan cover term. It offers the
following 2 options for the loans having floating rates of interest:
• Gold Option – This option is available only if the policy term is of minimum
5 years. If a member selects this option and died the policy term, the company
will pay the total outstanding amount as per to the floating rate of interest
offered by the member irrespective of the loan schedule mentioned in the
Certificate of Insurance. But the benefit will be paid only if the policy is active
and all the outstanding premiums have been paid in full.
• Platinum Option - This option is allowed for a policy term of 5 years and
above. If a member opt this option and died during the policy term, the
company will pay the outstanding loan amount according to the floating rate
of interest or the outstanding loan amount according to the interest rate which
was fixed at the start of the cover whichever is higher.
Death Benefit
The insurance company will pay the Sum Assured as per the option (Gold or
Platinum) selected by him/her, if the member died during the term of the
policy, If life assured has not selected any of the two options given above, then
the company will pay the Sum Assured according to the schedule mentioned
in the COI.
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Surrender Benefit
Surrender benefit can be availed after 1styear of the policy term. If the 1styear
premium has been paid, Surrender Value (SV) will be paid. The Surrender
benefit must be Rs.250. In case of co-borrowers, if one person surrenders the
policy, it will not affect the coverage provided to another members. The
benefit paid will be the higher of SV Surrender Value = (50% of premiums
paid) x (unexpired term/total term) or SSV (Special Surrender Value).
11. SBI Life Return Guarantee Plan
In this policy, the investment risk in investment portfolio is borne by the

policyholder.
Equity Market Performance is affected by many variables like Economic

condition, Liquidity, Corporate Performance, Global Markets, etc. Thus, you are
not sure what returns you will get on your hard-earned money.
SBI Life realises the same and brings to you SBI Life Return Guarantee
Plan which takes care of all these variables and gives you 'Peace of Mind' by
providing a Minimum NAV Guarantee Plus Upside, if any.
It is a unit Linked non participating Life Insurance Plan. The Plan is further
fortified with many power packed features which takes care of your financial
needs.
Key Benefits:
1. Option to choose a mix of Funds providing Guaranteed Return and Market
Linked Returns
2. Guaranteed Return provided through Return Guarantee Fund (RGF) which
guarantees a Minimum Pre-specified NAV
3. Apart from Minimum Guarantee, any upside in the RGF will also be paid to
policyholder.
4. Market Linked Returns provided through 3 Funds - Bond Fund, Equity Fund
& P/E Managed Fund to give you the best possible returns
5. Pay only once and get the benefits throughout the Policy Term
6. Liquidity through Partial Withdrawal(s)
7. Option to customize the product with Accidental Death Benefit Option
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8. An excellent investment cum insurance plan
How does the plan work?
The Single Premium (SP) paid by you, after deducting the Premium
Allocation Charge is invested in the Fund(s) as chosen. You can choose to invest
in 4 Funds - Return Guarantee Fund, Bond Fund, Equity Fund and P/E Managed
Fund.
RGF has close ended sub-fund(s), open for subscription for a maximum period
of 3 months. This has a fixed termination date which is 10 years from the start of
the subscription period of this sub-fund. Asa result, your actual investment period
in RGF maybe up to 3 months less than 10 years.
At termination of sub-fund, we will allocate the proceeds from the RGF which
will be the Fund Value at the higher of the prevailing NAV or the minimum pre-
specified guaranteed NAV. For example, if the minimum pre-specif led
guaranteed NAV of an RGF sub-fund is Rs. 18 and NAV of RGF prevailing at
termination of sub-fund is Rs. 20 then the Fund Value on the date of termination
of sub-fund will be calculated on NAV of Rs. 20. And, if the NAV of RGF
prevailing at termination of sub-fund is Rs. 15 then the Fund Value on the date of
termination of sub-fund will be calculated on NAV of Rs. 18, i.e. at the pre-
specified guaranteed NAV.
You will have a choice of Funds to allocate the proceeds of the RGF. If you do
not exercise this choice, these proceeds will automatically be allocated to the
Bond Fund
The customer also has added protection by choosing Accidental Death Benefit
Option.
Maturity Benefit
Lump Sum.
If the Policy Term is such that the maturity date is the same as the termination
date of RGF, then the Fund Value at maturity will be:
• Fund Value at the prevailing NAV as on date of Maturity for the Market
Linked Return Funds
Plus
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• Higher of the Fund Value at the minimum pre-specified guaranteed NAV or at
the prevailing NAV for the RGF.
If the Policy Term is such that the maturity date is later than the termination date
of RGF, the maturity value is the total Fund Value at maturity.
The following proportion of available Fund Value is paid over the term of the
settlement option chosen:
Death Benefit:
Higher of the Fund Value or Sum Assured is payable; with a minimum of
105% of the Single Premium paid. Sum Assured and amount equal to 105% of the
Single Premium paid will be reduced to the extent of Partial Withdrawals made in
the last 24 months for age at death below 60 years and for age at death 60 years &
above all Partial Withdrawals made from 58 years onwards.
Accidental Death Benefit:
If you have chosen the Accidental Death Benefit Option, the accidental
death benefit would be payable on the death of the Life Assured due to accident
where the term 'accident' is as defined below.
Accident is defined as "An event caused solely and directly by violent,
unexpected and external means resulting in bodily injuries, of which there is
evidence as a visible contusion or wound on the exterior of the body."
The benefit is payable in Lump Sum.
We give you flexibility to withdraw your money from the 6th Policy Year
onwards or on attainment of age 18 by the Life Assured whichever is later. One
free Partial Withdrawal in a Policy Year is allowed. A charge of Rs. 100 per
withdrawal in excess of free Partial Withdrawal will be charged. The Partial
Withdrawal charges will be recovered by deducting Rs. 100 from the Partial
Withdrawal amount. There is no carry forward of free unused Partial Withdrawal
for future Policy Years.
A maximum of 2 Partial Withdrawals can be made in one Policy Year and
not more than 5 Partial Withdrawals are allowed in entire Policy Term in case of
Policy Term less than 15 years and not more than 10 Partial Withdrawals for
Policy Term of 15 years and above.
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Minimum Partial Withdrawal amount allowed is Rs. 5,000 (in multiple of Rs.
1,000). Maximum Partial Withdrawal allowed is up to 20% of Fund Value as on
withdrawal request date.
Subsequent to a Partial Withdrawal at any time during the Policy Term, if
the Fund Value is not sufficient to recover the charges, the Policy will be
terminated immediately and the Fund Value without deduction of any charges will
be paid to you. All rights and benefits under the Policy will automatically cease
thereafter.
NAV guarantee does not apply to the Partial Withdrawals made. On
termination of RGF, the remaining number of units would have the NAV
guarantee.
Fund Options:
You can invest in any one or any combination of the below mentioned Funds:
Return Guarantee Fund:
The objective of the Fund is to provide a guaranteed return over a pre-

specified fixed period. It aims to guarantee fixed return by investing mostly in
fixed income securities (debt instruments, money market instruments and cash)
with maturities close to the termination date of the Fund. The investment would
generally follow 'Buy and Hold' strategy with some exceptions depending upon
the market situation.
The RGF will be segregated by close ended sub-fund(s). Each of this sub-
fund(s) terminates after 10 years from the start of subscription period of sub-
fund(s). The sub funds will be offered in tranches over a period of time and each
tranche will be open for a minimum period of 1 month and a maximum period of
6 months. The Minimum Guaranteed NAV shall be declared at the beginning of
the subscription period. The guaranteed return is applicable to the Fund Value at
the end of the 10th year from the start of the subscription period of the sub-fund.
12. SBI Life Smart Champ - Children’s Higher Studies
Every individual in his lifetime experiences special & treasured moment's like- a
wedding, the birth of a child, children's career achievements and their marriage or
even owning a dream home. One must be financially prepared to relish these
special instances and enjoy them to the fullest. What you need is adequate money
109 |P a g e
readily available at regular intervals along with life insurance cover to prepare for
these special requirements of life.
At SBI Life, we believe in standing by you through all your requirements,

at different life stages, by offering you the support you need at these crucial
intervals of life.
About Children’s Higher Studies
It is a savings plan with added advantage of Life Cover and cash inflow at
regular intervals. It is participating traditional money back plan, meeting your
various financial obligations at crucial junctures by its wide range of Policy
Terms. Regular payments of Survival Benefits are made at different durations
during the Policy Term. In the unfortunate event of death at any time within the
Policy Term, your nominee would receive the full Sum Assured plus Simple
Reversionary Bonus & Terminal Bonus (if any), irrespective of Survival Benefits
already paid
Key Highlights
Money Back options specially tailored to suit your requirements
Guaranteed fixed cash inflows which can meet your various financial obligations
Guaranteed Survival Benefit of 110% to 125% of Sum Assured paid till maturity
Rebate on Large Sum Assured
Customize your coverage through the wide range of additional benefits -
Accidental Death Benefit Rider, Accidental Total Permanent Disability Rider,
Term Assurance Rider and Critical Care 13 Non-Linked Rider.
Survival Benefits Available under Different Options
You will receive Guaranteed Survival Benefits at regular intervals during
the Policy Term. In addition, Simple Reversionary Bonus will be paid with the
last Survival Benefit declared during the Policy Term. This helps you to meet your
financial obligation at crucial junctures.
The Cumulative Guaranteed Survival Benefits depends on the term

chosen; higher the term, higher the Cumulative Guaranteed Survival Benefits.
Simple Reversionary Bonus is the total amount of bonus accrued under the policy
during the entire term. The bonus will apply to the basic Sum Assured. It is
payable along with the last Survival Benefit Payment. Terminal Bonus (if any)
will also be paid along with the last Survival Benefit Payment.
110 |P a g e
What will be Nominee/Beneficiary Get in the Event of Death Claim?
In the unfortunate event of death during the term of the plan, the nominee
will receive the Basic Sum Assured plus Simple Reversionary Bonus (accrued till
the date of death), irrespective of Guaranteed Survival Benefits already paid.
Terminal Bonus (if any) will also be paid along with the last Survival Benefit
Payment.
These are the general features of this plan.
Thus, in this chapter the researcher has presented a historical and geographical
profile of the area under study i.e. Marathwada region. The researcher has also
presented the demographic profile of Marathwada. Further the researcher has
presented an analytic profile of socio-economic aspects of the sample customers.
The researcher has also highlighted on the No. of bank branches of SBI in
Marathwada region. The most important, the product profile of bancassurance in
SBI is presented in this chapter.
References:
1. Kulkarni Sanjay (2006), Districts in Maharashtra, K’Sagar Publications, Pune.

2. Sadhu Arun (2007), Maharashtra, National Book Trust, India, New Delhi.
3. Deshmukh R. N. (2005), Nanded Zilha, Kalpana Prakashan, Nanded.
4. Government of Maharashtra (2019), Aarthik-Samajik Vishleshan (Marathi)
(Socio-Economic Report), Publication Division, Govt. of Maharashtra,
Mumbai.
5. Product Leaflet of Insurance Policies of SBI Life.
******
111 |P a g e

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Chapter – 3

Profile of the Area under Study

Present research is conducted in the area of Marathwada region of

Marathwada is called a backward region in Maharashtra. It lays at the south

3.2 Geographical & Historical Profile of Marathwada Region

Geographical Location of Marathwada Region

As the researcher has conducted a study of performance of bancassurance of

Table No. 3.1

Table Showing Geographical Location of Marathwada Region

Sr. No. District Latitude Longitude

The above table shows that,

The Latitude of Aurangabad is 19-20 and the Longitude is 74-76, Latitude of

After having a look on the geographical locations of the districts in

Aurangabad district is one of the main district of Marathwada region. The

The general geographical features of the district can be described as a narrow

The researcher has analyzed demographic features of Marathwada region in this

Gender wise Classification of Population in Marathwada

Table No. 3.2

Gender wise Classification of Population in Marathwada

Sr. District Male % Female % Total

Above table shows that –

Percentage of Literacy in Marathwada - Gender wise Classification

Now a day’s literacy of the population has great impact on overall

Gender wise Literacy Percentage of Population in Marathwada

Sr. District % of Male % of Female % of

Above table shows that –

Out of the total population of Aurangabad district percentage of male literate

Rural – Urban Classification of Population in Marathwada

Location decides the awareness of people regarding the life insurance

Table No. 3.4

Rural – Urban Classification of Population in Marathwada

Sr. District Rural % Urban % Total

It can be observed from the above table that –

3.4 Socio-Economic Profile of Sample Customers

Gender wise Classification of the Sample Customers

This is an important demographic characteristic of an individual. Considering

Table No. 3.5

Gender wise Classification of the Sample Customers

Sr. No. Gender No. of Respondents %

Age wise Classification of the Sample Customers

This is an important demographic characteristic of an individual. Considering

Table No. 3.6

Age wise Classification of the Sample Customers

Sr. No. Age Group No. of Respondents %

Education wise Classification of the Sample Customers

This is an important demographic characteristic of an individual. Considering

Table No. 3.7

Education wise Classification of the Sample Customers

Sr. No. Education No. of Respondents %

This is an important demographic characteristic of an individual. Considering

Table No. 3.8

Occupation wise Classification of the Sample Customers

Sr. No. Occupation No. of Respondents %

Income wise Classification of the Sample Customers

Income wise Classification of the Sample Customers

Sr. No. Yearly Income No. of Respondents %

3.5 Banks in Marathwada

No. of Bank Branches of SBI

Sr. No. District No. of Branches % to Total

It can be seen from the above table that,

3.6 Product Profile of Bancassurance in SBI

The details of these life insurance products are presented here.

Whole Life Endowment

Deferred Maturity Payment