consumer behavior towards birla sun life insurance

Upload: aaqib-naje

Post on 04-Mar-2016

41 views

Category:

Documents


1 download

Embed Size (px)

DESCRIPTION

literature

TRANSCRIPT

  • INTRODUCTION

    BIRLA SUN LIFE INSURANCE Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya BirlaGroup and Sun Life Financial Inc., a leading international financial services organization. Thelocal knowledge of the Aditya Birla Group combined with the expertise of Sun Life FinancialInc., offers a formidable value proposition to customers. Sun Life Financial and its partnerstoday have operations in key markets worldwide, including India, Canada, the United States, theUnited Kingdom, Hong Kong, Philippines, Japan, Indonesia, China and Bermuda. Sun LifeFinancial Inc. had assets under management of over US$ 386.82 billion, as on 31 March 2007.Sun Life Financial Inc. is a leading performer in the life insurance market in Canada.BSLI in its five successful years of operations has contributed significantly to the growth anddevelopment of the life insurance industry in India. It pioneered the launch of Unit Linked LifeInsurance plans amongst the private players in India. It was the first player in the industry to sellits policies through the Bank assurance route and through the internet. It was also the first privatesector player to introduce a pure term plan in the Indian market. This was supported by sales practices, which brought a degree of transparency that was entirely new to the market. The process of getting sales illustrations signed by customers, offeringa free look period on all policies, which are now industry standards were introduced by BSLI.Being a customer centric company, BSLI has invested heavily in technology to build world class processing capabilities. BSLI has covered more than one and a half million lives since inceptionand its customer base is spread across 100 cities in India. All this has assisted the company incementing its place amongst the leaders in the industry interms of new business premiumincome. Birla Sun Life Insurance (BSLI), one of the leading private life insurers in India todayannounced the inimitable achiever, cricketer Kapil Dev as their corporate brand ambassador. Thecricketing supreme will be endorsing BSLI in all its marketing initiatives. Birla Sun LifeInsurance is a value-driven brand which has a national brand recall of 70 per- cent. The objectiveof appointing a brand ambassador is to grow its brand recall as it goes national in its distributionreach and fuel business growth. As a brand ambassador, Kapil Dev will play a key role in the brand and product marketing and promotional activities. BSLI has always used an integratedmarketing approach, which will be strengthened further.2

    Commenting on the association with Kapil Dev, Mr. S. K. Mitra, Director, Financial Services,Aditya Birla Group and currently in charge of BSLI expressed, "The Birla Sun

  • Life Insurance business distribution network is national in nature covering more than 1000 points across thecountry .We have made our entry in several tier I and tier II towns. It is therefore very importantfor the brand to connect at the grass root level and create trust. We believe that our associationwith Kapil Dev as our brand ambassador will help uscreate this connects in a shorter period of time. We therefore now have two strong connects our parent brand Birla and our brandAmbassador Kapil Dev".Kapil Dev, alsoknown as the Haryana Hurricane, was born on 6 January 1959 in Chandigarh.He played his first competitive game of cricket at the age of 13 years and made his test debut on16 October 1978 at Faisalabad against Pakistan. Kapil Dev remained India's top strike bowler for almost 15 years. His extraordinary test match figures of more than 5000 runs and 434 wicketsalong with 64 catches show that he was a world class cricketer and an all-rounder. He has raisedthe mantle of India to sporting glory by winning us the World Cup.In a study conducted by BSLI, Kapil Dev connected extremely well with the life insurancecategory and had high acceptance by the masses. Our survey suggests that he is seen as a verygood fit for the BSLI brand. He is very much loved and respected by a vast majority of the population.On 26 November 2006, Birla Sun Life hosted the annual golf tournament at the Chembur Golf Club in Mumbai where Kapil Dev participated. About Birla Sun Life Insurance Birla Sun Life Insurance Company Limited is a joint venture between the Aditya Birla Group,one of the largest business houses in India and Sun Life Financial Inc., a leading internationalfinancial services organization. The local knowledge of the Aditya Birla Group combined withthe expertise of Sun Life Financial Inc., offers a formidable protection for your future.Birla Sun Life Insurance (BSLI), in its five successful years of operations, has contributedsignificantly to the growth and development of the life insurance industry in India. It pioneeredthe launch of unit linked life insurance plans amongst the private players in India. It was the first player in the industry to sell its policies through the banc assurance route and through theinternet. It was the first private sector player to introduce a pure term plan in the Indian market.This was supported by sales practices which brought a degree of transparency that was entirely1new to the market. The process of getting sales illustrations signed by customers and offering afree look period on all policies, which are now industry standards, were introduced by BSLI.Being a customer-centric company, BSLI has invested heavily in technology to build world class processing capabilities. BSLI has covered more than a million lives since inception and itscustomer base is spread across more than 1000 towns and cities in India. All this has assisted thecompany in cementing its place amongst the leaders in the industry in terms of new business premium income. The company's current capital base is Rs.520 crore. About the Aditya Birla Group The Aditya Birla Group has a turnover close to Rs.38,000 crore (as on 31 March 2008) and isone of the largest business houses in India. It enjoys a leadership position in all the sectors inwhich it operates. With over 75 business units spanning the South East Asian belt, Africa,Canada and the UK among others, it is reckoned as India's first multinational corporation. Thegroup is anchored by 72,000 employees and has seven lakh shareholders,with a marketcapitalization of Rs.53,400 crore.

  • About Sun Life Financial Inc. Sun Life Financial Inc. is a leading international financial services organization providingadiverse range of wealth accumulation and protection products and services to individuals andcorporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners todayhave operations in key markets worldwide, including Canada, the United States, the UnitedKingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of 31March 2008, the Sun Life Financial group of companies had total assets under management of US$ 343 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) andPhilippine (PSE) stock exchanges under tickersymbol Key peoples of organisation Board of Directors Mr. Kumar M Birla Mr. Donald A Stewart, Mr. Bishwanath N Puranmalka Mr. Ajay Srinivasan Mr. Gary M Comerford Mr. Suresh N Talwar Mr. Gian P Gupta His Highness Maharaja G Singh Mr. Stephan Rajotte Dr. Bharat K Singh Investment Committee Mr. B. N. Puranmalka

  • Mr. Eugene Lundrigan Mr. Ajay Srinivasan Mr. Vikram Mehmi Mr. Mayank Bathwal Mr. Fabien Jeudy Mr. Vikram Kotak Ms. Keerti Gupta Management TeamMr. Vikram Mehmi President & Chief Executive Officer Mr. Mayank Bathwal Chief Financial Officer Mr. Mario Braganza Chief Operating Officer Mr. E.N. Goveia Head - Direct Sales Force1Competitors in Detail:-

    Aviva life insurance: Aviva Life Insurance Company India Pvt. Ltd. is a joint venture between Aviva of UK and Dabur, one of India's leading producers of traditional healthcare products. Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share.

    Bajaj Allianz: Bajaj Allianz is a joint venture between Allianz AG one of the world's largestinsurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in theworld. Bajaj Allianz is into both life insurance and general insurance. Allianz Group isone of the world's leading insurers and financial services providers. Founded in 1890 in Berlin,Allianz is now present in over 70 countries

  • HDFC Standard Life Insurance Co. Ltd: is a joint venture between HDFC Ltd., India'slargest housing finance institution and Standard Life Assurance Company, Europe's largestmutual life company. It was the first life insurance company to be granted a certificate of registration by the IRDA on the 23rdof October 2000.

    ING Vysya Life Insurance Company Limited: is a joint venture between Vysya Bank andING Group of Holland, the world's 4th largest financial services group, with presence across50 countries, and a heritage of over 150 years.

    Kotak Mahindra Old Mutual Life Insurance Ltd: is a joint venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leadingfinancial institutions and offers a range of financial services such as commercial banking.

    Life Insurance Corporation of India: (LIC) is an autonomous body authorized to run thelife insurance business in India with itsHead Office at Mumbai. It has been established by anact of the Parliament and started functioning from 1/9/1956.

    ICICI Prudential Life Insurance : ICICI Prudential life insurance is a part of ICICI Bank.

    Max New York Life Insurance Company Limited is a joint venture between Max IndiaLimited, a multi-business corporate, and New York Life International, a global expert in lifeinsurance. New York Life is a Fortune 100 company that has over 160 years of experience inthe life insurance business.

    MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and itsIndian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank, KarnatakaBank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu.

    Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance- Anil Dhirubhai Ambani Group.The company acquired 100 per cent shareholding in AMPSanmar Life Insurance Company in August 2005. Taking over AMP Sanmar Life providedReliance Life

  • Insurance a readymade infrastructure and a portfolio.

    SBI Life Insurance is a joint venture between the State Bank of India and Cardiff SA of France. SBI Life Insurance is registered with an authorized capital of Rs 500 crore and a paidup capital of Rs 350 cores.

    Tata AIG Life Insurance Company Limited is a joint venture between Tata Group andAmerican International Group, Inc. (AIG). Tata Group is one of the oldest and leading business groups of IndiaGroup has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalization of insurance.The Late Sir Dorab Tata was the founder Chairman of New India Assurance Co. Ltd., agroup company incorporated way back in 1919.

    Shriram Life Insurance Company Ltd is a joint venture between the Chennai-basedShriram Group and the South African insurance major Sanlam. The company launched itsoperation in India in December 2005operation in India in December 2005 STRENGTH: 1

    Multi-channel distribution and one of the largest distribution networks in India.

    Implementing Six-Sigma process.

    Customer centric products and services.

    Superior investment and risk management framework

    1 Million Policies sold within 3 and half years.

  • Company has maximum number of MDRT as well as good number of HNI advisors.

    Training process of the company is very strong.

    Different plan for different peoples.

    According to the change in surrounding environment like changes in customer requirement. WEAKNESS:

    COMPANY does not penetrate on the rural market at a time.

    There is no plan for the low income group.

    Fees for the advisor is high than the other company. OPPORTUNITY:

    Insurance market is very big, where company can expand its horizon in insurance industry . Though good investment and insurance it is easy to top Indian customers.

    The huge insurance market (77%) is left so company has opportunity to expand our products.

    To associate with the more number of HNI. THREATS:

    OLD HABITS DIE HARD: Its still difficult task to win the confidence of public towards private company.

  • The company is facing major threats from LIC -which is an only government company.

    Plans for all income groups are not available which can create adverse effect later on themarket share of the company. 1.2 INTRODUCTION TO THE PROJECTEVALUATION OF INSURANCE operation in India in December 2005 STRENGTH: 1

    Multi-channel distribution and one of the largest distribution networks in India.

    Implementing Six-Sigma process.

    Customer centric products and services.

    Superior investment and risk management framework

    1 Million Policies sold within 3 and half years.

    Company has maximum number of MDRT as well as good number of HNI advisors.

    Training process of the company is very strong.

    Different plan for different peoples.

  • According to the change in surrounding environment like changes in customer requirement. WEAKNESS:

    COMPANY does not penetrate on the rural market at a time.

    There is no plan for the low income group.

    Fees for the advisor is high than the other company. OPPORTUNITY:

    Insurance market is very big, where company can expand its horizon in insurance industry . Though good investment and insurance it is easy to top Indian customers.

    The huge insurance market (77%) is left so company has opportunity to expand our products.

    To associate with the more number of HNI. THREATS:

    OLD HABITS DIE HARD: Its still difficult task to win the confidence of public towards private company.

    The company is facing major threats from LIC -which is an only government company.

    Plans for all income groups are not available which can create adverse effect later on themarket share of the company. 1.2 INTRODUCTION TO THE PROJECTEVALUATION OF INSURANCE The evaluation of insurance dates back as early as the commencement of trade between twocountries in England, especially between the European countries. During the transportation of goods, there were chances of the ship being drowned in the rough sea conditions or attacked bythe pirates, leading to huge loss to the party sending goods. The traders of England devised away whereby the loss of the goods would be compensated by

  • every trader putting in someamount as per their financial strength so that a single party may not be the loser; this is the earlier concept of insurance. This concept is taking shape for the last 300 years, yet in India the firstinsurance company was established in 1818 with the advent of European widows. The name of the company was oriental life insurance company. WHAT IS INSURANCE?Insurance is a mechanism that ensures an individual to thrive on adverse consequences bycompensating the individual, his/her loss financially. Every individual in the world andallactivities connected with him/her, be it life, profession, business, travel or any other pursuits aresubject to unforeseen and uncalled for hazards or dangers. The benefit that an individual enjoysin his life by owning a car or a house or a factory can be snatched by sudden accident which canrender even the individual immobile, and his family vulnerable. At this critical juncture, onlyinsurance helps him not only to survive but recover his loss and continue his life in a normalmanner, which would otherwise be unthinkable.The concept of insurance is quite simple. People, who are in similar trade and are exposed to thesame risks, congregate and some to an agreement that if any individual member suffer a loss,then the loss will be shared by others and minimized in order to enable the individual member recover from the loss and cover his ground. Similarly the different kinds of risks can beidentified and separate groups can be formed to counter such risks and reduce to impact tomanageable proportion, in which the share could be collected from the members either after theloss or in advance, at the time of admission to the group. This is an exemplary sign of humanityand insurance therefore serve the mankind to a great extent; a point most of the individual tend tooverlook, since monetary aspect is involved. Now such is for tangible assets.The concept of insurance has been extended beyond the coverage of tangible assets. Exportersrun the risk of importers in other country defaulting as well as losses due to sudden fluctuationsin the currency exchange rates, economic policies turmoil. The risk are not insured. Doctors runthe risk of being charged with negligence and can subsequently liable for damage. Theamount inquestion can be fairly large, beyond the capacity of the individual to bear. These are insured.Thus insurance is extended to intangible assets. In some countries even the voice of a singer ,legs of the footballer can be insured, even though the advantage of spread may not be availablein these cases. Satisfaction of economics needs requires generation of income from somesources. If the property, which is the source of such income, were lost fully or partially, permanently, or temporarily, the income too would stop. The purpose of insurance is tosafeguard against such misfortune few, through the help of the fortune many, who were exposedto the same risk , but saved from the misfortune . Thus the essence of insurance is to share lossessubstitute certainty by uncertainty.The different types of human activities that come under the umbrella of insurance are as follows.1. House/office/factory or any moveable object destroyed in life - Fire insurance2. Shipmentor transportation of goods - Marine insuranceBy ship, destroyed in catastrophe.3. jewellery /cash/ household goods - Burglar insuranceStolen or robbed4. Goods in transit by roads or railways destroyed. - Carrier insurance5. Theft or accident of vehicles - Vehicle insurance6. Financial cover in ailment /surgery etc - Health insuranceAll these are non-life insurance. In conclusion one can safely say that the purpose of insurance be it

  • or non-life is to transfer the financial loss to the insurance company who spreads in over tothe policyholders. Life insurance Life insurance (Life Assurance in British English) is a type of insurance. As in all insurance, theinsured transfers a risk to the insurer. The insured pays a premium and receives a policy inexchange. The risk assumed by the insurer is the risk of death of the insuredHow life insurance works There are three parties in a life insurance transaction; the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the sameperson. For example, if John Smith buys a policy on his own life, he is both the owner and the insured. But if Mary Smith, his wife, buys a policy on John's life, she is the owner and he is the insured. Theowner of the policy is called the grantee (he or she will be the person who will pay for the policy). Another important person involved is the beneficiary. The beneficiary is the person or persons who will receive the policy proceedsupon the death of the insured. The beneficiary isnot a party to the policy, but is designated by the owner, who may change the beneficiary unlessthe policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to changes in beneficiary, policy assignment, or borrowing of cash value.The policy, like all insurance policies, is a legal contract specifying the terms and conditions of the risk assumed. Special provisions apply, including a suicide clause wherein the policy becomes null if the insured commits suicide within a specified time for the policy date (usuallytwo years). Any misrepresentation by the owner or insured on the application is also grounds for nullification. Most contracts have a contestability period, also usually a two-year period; if theinsured dies within this period, the insurer has a legalright to contest the claim and requestadditional information before deciding to pay or deny the claim.The face amount of the policy is normally the amount paid when the policy matures, although policies can provide for greater or lesser amounts. The policy matures when the insured dies or reaches a specified age. The most common reason to buy a life insurance policy is to protect thefinancial interests of the owner of the policy inthe event of the insured's demise. The insurance proceeds would pay for funeral and otherdeath costs or be invested to provide income replacingthe deceased's wages. Other reasons include estate planning and retirement. The owner (if not theinsured) must have an insurable interest in the insured, i.e. a legitimate reason for insuringanother persons life. The insurer (the life insurance company) calculates the policy prices withintent to recover claims to be paid and administrative costs, and to make a profit. The cost of insurance is determined using mortality tables calculated by actuaries.Actuaries are professionals who use actuarial science which is based in mathematics (primarily probability and statistics). Mortality tables are statistically based tables showing average lifeexpectancies. The three main variables in a mortality table are age, gender, and use of tobacco.The mortality tables provide a baseline for the cost of insurance. In practice, these mortalitytables are used in conjunction with the health and family history of the individual

  • applying for a policy in order to determine premiums and insurability. The current mortality table being used bylife insurance companies in the United States and their regulators was calculated during the1980s. There is currently a measure being pushed to update the mortality tables by 2008.The current mortality table assumes that roughly 2 in 1,000 people aged 25 will die during theterm of coverage. This number rises roughly quadratically to about 25 in 1,000 people for thoseaged 65. So in a group of one thousand25 year old males with a $100,000 policy, a lifeinsurance company would have to, at the minimum, collect $200 a year from each of thethousand people to cover the expected claims. The insurance company receives the premiumsfrom the policy owner and invests them to create a pool of money from which to pay claims, andfinance the insurance company's operations. Contrary to popular belief, the majority of themoney that insurance companies make comes directly from premiums paid, as money gainedthrough investment of premiums will never, in even the most ideal market conditions, vestenough money per year to pay out claims. Rates charged for life insurance increase with theinsured's age because, statistically, a people are more likely to die as they get older. Sinceadverse selection can have a negative impact on the financial results of the insurer, the insurer investigates each proposed insured (unless the policy is below a company-established minimumamount) beginning with the application, which becomes part of the policy. Group Insurance policies are an exception. This investigation and resulting evaluation of the risk is calledunderwriting. Health and lifestyle questions are asked, and the answers are dutifully recorded.Certain responses by the insured will be given further investigation. Life insurance companies inthe United States support The Medical Information Bureau, which is a clearinghouse of medicalinformation on all persons who have ever applied for life insurance. As part of the application,the insurer receives permission to obtain information from the proposed insured's physicians.Life insurance companies are never required by law to underwrite or to provide coverage onanyone. They alone determine insurability, and some people, for their own health or lifestylereasons, are uninsurable. The policy can be declined (turned down) or rated. Rating meansincreasing the premiums to provide for additional risks relative to that particular insured.Many companies use four general health categories for those evaluated for a life insurance policy. These categories are Preferred Best, Preferred, Standard and Tobacco. Preferred Bestmeans that the proposed insured has no adverse medical history isnot under medication for anycondition, and his family (immediate and extended) has no history of early cancer, diabetes or other conditions. Preferred is like Preferred Best, but it allows that the proposed insured iscurrently under medication for the condition and may have some family history. Most people arein the Standard category. Profession, travel, and lifestyle also factor into not only which categorythe proposed insured falls, but also whether the proposed insured willbe denied a policy. For example, a person who would otherwise be in the Preferred Best category will be denied a policyif he or she travels to a high risk country.Upon the death of the insured, the insurer will require acceptable proof of death before payingthe claim. The normal minimum proof is a death certificate and the insurer's claim formcompleted, signed, and often notarized. If the insured's death was suspicious and the policyamount warrants it, the insurer may investigate the circumstances surrounding the death, beforedeciding whether there is a legal obligation to pay the claim.Proceeds from the policy may be paid in a lump sum or as an annuity paid over time in regular recurring

  • payments for either for the life of a specified person or a specified time period. Contribution of life insurance in development of economy

    Contribution of Life Insurance Sector in the Economy

    Flow of Insurance Industry in India

    Structure of insurance industry: Snap ShotIndustry

    Aggregation of long term savings

    Spread of financial services in rural Areas

    Long term funds for infrastructure development of capital Markets/ Economic Growth

    Employment generation

    Special Futures

    Growth PotentialDETAILS OF PRODUCTSPRODUCTSLife is unpredictable. But in face of adversity, our responsibilities towards our parents, childrenand loved ones need not be compromised. Insurance planning equips you to smooth out theuncertainties and adversities that life might send your way, so that the best that life has to offer,secure in the knowledge that your beloved ones are well provided for.BSLI offers a completerange of insurance products1 . Protection Plans2. Savings Plans3. Child Plans4. Investment Plans5. Retirement Plans6. Group Plans7. Rural PlansInsurance Plans BSLI offers Lifeguard - a set of pure protection plans. Choose from amongst three different product structures toinsure your life and provide total security to your family, at a veryaffordable cost.

  • 7. Rural PlansInsurance Plans BSLI offers Lifeguard - a set of pure protection plans. Choose from amongst three different product structures toinsure your life and provide total security to your family, at a veryaffordable cost. Level Term Assurance with return of premium

    On death the entire sum assured will be paid.

    On maturity, all the premiums paid will be returned. Level Term Assurance without return of premium

    On death the entire sum assured will be paid.

    No survival or maturity benefits.You can also enhance the above two policies by adding Accident& Disability Benefit Rider and Waiver of Premium Rider (WOP)Level Term Assurance - Single premium:

    On death the entire sum assured will be paid.

    No survival or maturity benefitsProtection Plans BSLI offers a variety of policies that give you the benefits of protection and the opportunity tosave for important assets or events, like a home, a car or a wedding.A regular premium unit-linked insurance plan with an assurance of Capital Guarantee# withtheadded advantage of flexible liquidity option. An ideal plan for long term planning withthe benefit of liquidityThe key features of the plan are:

    Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of theannual premium. You can also choose the term of the plan.

    At the end of the term, the higher of the value of units or the guaranteed value is paid. Ondeath, Sum Assured along with the higher of value of units or the guaranteed value is payable.

    Facility to make withdrawals from the 6th policy year onwards till the end of the policy

  • term.Every year withdraw up to 10% of the value of units.

    Additional credits payable as a percentage of the initial annual premium are paid along withthe death or maturity benefit.

    Additional insurance for 10 years after the maturity, for an amount of 50% of the SumAssured Savings Plans

    Flexibility to make additional investment with the help of the top-up facility.

    Flexibility to increase / decrease your annual premium Amount

    Facility of Automatic Premium Payment- With this facility you can take a temporary break from premium payment.

    Total transparency with the premium allocations, and other charges declared upfront.

    The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all charges) along with the declared bonus interests.With Automatic Premium Payment facility, you can avail a temporary break from premium payment for a maximum of 1 year. This facility is available once if the premium paying term isless than 15 years and twice, if it is 15 years or more. You can also enhance your policy byadding Accident & Disability Benefit Rider , Waiver of Premium Rider and Critical Illness Rider .A regular premium unit-linked insurance plan with an assurance of Capital Guarantee# An ideal plan for your long-term savings and protection requirement. The key features of the plan are :

    Flexibility to choose a specific level of protection ( Sum Assured ), based on a multiple of theannual premium. You can also choose the term of the plan.

    At the end of the term, the higher of the value of units or the guaranteed value is paid. Ondeath, Sum Assured along with the higher of value of units or the guaranteed value is payable

  • Additional credits payable as a percentage of the initial annual premium are paid along withthe death or maturity benefit.

    Additional insurance for 10 years after the maturity, for an amount of 50% of the SumAssured.

    Flexibility to make additional investment with the help of the top-up facility.

    Flexibility to increase / decrease your annual premium amount

    Facility of Automatic Premium Payment- With this facility you can take a temporary break from premium payment.

    Total transparency with the premium allocations, and other charges declared upfront. Theguaranteed value of the unit fund is the value of all invested premiums (premiums netof allcharges) along with the declared bonus interests.With Automatic Premium Payment facility, you can avail a temporary break from premium payment for a maximum of 1 year. This facility is available once if the premium paying term isless than 15 years and twice, if it is 15 years or more.The capital guarantee is applicable only on the invested premium and the declared bonusinterests. You can also enhance your policy by adding Accident & Disability Benefit Rider,Waiver of Premium Rider and Critical Illness Rider.A unit-linked insurance plan with an assurance of Capital Guarantee which offers you the benefitof a limited premium payment term. An ideal plan for protection with wealth creation that offersthe flexibility of a limited premium paying term .

    Flexibility to choose a premium payment term of 5, 7 or 10 years for a maturity term of 10,15 or 20 years respectively.

    Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of theannual premium.

  • At the end of the term (maturity), the higher of the value of units or the guaranteed value is paid. On death, Sum Assured along with the higher of value of units or the guaranteed valueis payable.

    Additional credits payable as a percentage of the initial annual premium are paid along withthe death or maturity benefit.

    Facility to make withdrawals from the 6th policy year onwards till the end of the policy term.Every year withdraw up to 10% of the value of units

    Flexibility to make additional investment with the help of the top-up facility.

    Flexibility to increase / decrease your annual premium amount

    Total transparency with the premium allocations, and other charges declared upfront .

    The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all charges) along with the declared bonus interests.

    The capital guarantee is applicable only on the invested premium and the declared bonusinterests. You can also enhance your policy by adding Accident & Disability Benefit Rider and Critical Illness Rider.

    Presenting Premier Life The Preferred plan for the Preferred Customer. The key features of the plan are:

    Limited premium payment option: Choose from among a 3, 5, 7 or 10 year premium payingterm.

    Choice of sum assured: Choose a sum assured, which is a minimum multiple of 1 and amaximum multiple of 25 times the annual contribution.

    Additional allocation of units on a periodic basis.

    Facility to top-up your investment any time you have surplus funds.

  • Choose from among four funds, based on your investment objective and risk appetite. Flexibility to decrease your sum assured.

    Add-on riders to protect you against any eventuality.

    Loans against the policy.You can also enhance your policy by adding Critical IllnessRider, Accident & Disability Benefit Rider. 1Presenting Life Time unit linked plans that meet your changing needsover a lifetime. These solutions have been developed to meet your savings, protectionand investment needs at every stage in life. Protection

    Choose a specified level of protection (available only with Lifetime).

    Two levels of Sum Assured to choose from (available only with Lifetime II).

    Flexibility to increase or decrease your sum assured .

    Add-on riders to protect you against any eventuality. Savings

    Flexibility to increase or decrease your contribution.

    Facility of Premium Holiday, wherein the policy continues even if there is a temporary break in the payment of annual contribution (available only with Life Time).

    Facility of Automatic Cover Continuance, wherein the policy continues even if there is atemporary break in the payment of annual contribution

    Facility to top-up your investment any time you have surplus funds.

    Additional allocation of units on a periodic basis.

  • Loans against the policy. Investment:

    Choose from among four funds, based on your investment objective and risk appetite.

    Choice to switch between investments options (4 free switches every policy year).You can also enhance your policy by adding Critical Illness Rider, Major Surgical AssistanceRider, Accident & Disability Benefit Rider, Accident Benefit Rider (available only with LifeTime) and Waiver of Premium Rider. An insurance plan that gives added protection, savingsand multiple options, all in one!

    The flexibility to choose your premium contribution.

    The flexibility to choose amongst three levels of cover (in the form of sum assured) for thesame amount of total annual contribution.

    The flexibility of shifting between the three levels of cover, as you require.

    The flexibility of receiving your maturity proceeds as a lump sum or in equal annualinstallments over 3 or 5 years.1You can also enhance your policy by adding Variety of Riders An insurance plan that givesyou added protection, savings, multiple options, plus the power of liquidity.

    The flexibility to choose your premium contribution.

    The flexibility to choose amongst three levels of cover (in the form of sum assured) for thesame amount of total annual contribution.

    The flexibility of shifting between the three levels of cover, as you require.

    The flexibility of receiving your maturity proceeds as a lump sum or in equal annualinstallments over 3 or 5 years.

    The flexibility of withdrawing up to 10% of the accumulated value of your policy, after thefirst 5 policy years.You can also enhance your policy by adding Variety of Riders An ideal plan for those whowant to accumulate funds on a regular basis while enjoying insurance protection.

  • Guaranteed Benefits: Guaranteed additions @ 3.5% of the Sum Assured, compoundedannually for the first 4 years of the policy.

    Extended Life Cover: An extended cover for 5 years after the maturity of the policy, for 50% of the sum assured, at no extra cost.

    Maturity Benefit: At the end of the term, the policyholder receives the full sum assured, theguaranteed additions and the vested bonuses.

    Death Benefit: The beneficiary receives the sum assured, the guaranteed additions and thevested bonusesin case the life assured were to meet with an unfortunate event. In case the lifeassured is aged 7 years or less, the basic premium paid will be returned.You can also enhance your policy by adding Critical Illness Rider, Major Surgical AssistanceRider, Accident & Disability Benefit Rider, Waiver of Premium Rider (WOP) As a responsible parent, you will always strive to ensure a hassle-free, successful life for your child. However, lifeis full of Uncertainties and even the best-laid plans can go wrong. Heres how you can give your child a 100% safe and assured tomorrow, whatever the uncertainties. Smart Kid is especiallydesigned to provide flexibility and safeguard your childs future education and lifestyle, takingall possibilities into account. Choose from amongst a basket of 4 plans:

    Smart Kid regular premium

    Smart Kid unit-linked regular premium

    Smart Kid unit-linked regular premium II 1

    Smart Kid unit-linked single premium IICHILD PLANSAll these plans offer you:

  • Financial Benefits: Regular payments at critical stages in your childs life, like Boardexaminations, Graduation and Post-graduation.

    Total peace of mind, even if you are not around

    Sum Assured is paid immediately: Ensures that your loved ones stay financially secure,even in your absence.

    All future premiums are waived: Ensuring that your family is not financially burdened inyour absence.

    Policy benefits continue: The educational benefits of the policy continue, ensuring that your child can realize his orher dreams without any hassles.

    Development Allowance: Smart Kid guarantees regular income to secure your childseducational career and also ensures his or her all-round development, for a nominal additionalamount. The Income Benefit Rider takes care of this through an annual payment of 10% of the sum assured, to your child, till the maturity of the policy, in the unfortunate event of thedeath of the parent. All SmartKid plans can be enhanced with the Accident & DisabilityBenefit Rider and Income Benefit Rider . You can also an Accident Benefit Rider to aSmart Kid Regular Premium policy, and a Waiver of Premium Rider (WOP) t o Smart Kidunit-linked regular premium policy.Life Link II is a unique plan that combines the security of a life insurance policy with theopportunity of enjoying high returns on your investments, without the marketrisks compromising on the protection of your family! Death Benefit: The Sum Assured under the product has 2 options, either 500% of the initial premium or 105% of the initial premium. In the event of an unfortunate death, the beneficiarywill receive higher of the value of units or the initial death benefit, less any withdrawals.

  • Withdrawal Benefit: One can make partial withdrawals from the accumulated value of the policy after completion of one policy year. Flexibility: Choose from four fund options, based on your investment objective and risk appetite. If at a later stage your financial priorities change, you can switch between the variousfund options, absolutely free, 4 times a year.Investment Plans Life Expectancy has been rising rapidly and today you can expect to live longer than yourearlier generations. For you, this increase will mean a longer retirement life, stretching into a couple of decades. BSLI Retirement Solutions that combine the best of insurance and investment. Thesesolutions are developed to ensure your peace of mind for the years to come.1. Why plan for retirement?2. How much should I set aside for retirement?3. Theimpact of inflation on your retirement savings4. Why plan early?5. About Annuities Why plan for retirement? For too many people, the joy of retirement after years of hard work is eclipsed by the financialuncertainties that it brings. Despite all the planning and saving, you can never sure whether your money will last a lifetime. Retirement planning offers a way to ensure a more enjoyable, stressfree tomorrow. A prudent plan will ensure that increasing life expectancy, higher inflation andincreasing taxes do not eat away into your hard earned savings.Retirement PlansHow much must I set aside for retirement? To ensure a comfortable retired life, you would be wise to invest money into additional avenueslike pension plans. How much you need to invest can be answered by answering some questionssuch as:1. How long do you have to save that amount before retirement?2.Where can you invest your retirement money?3. How much risk are you willing to take on your investments?In an era of competitive parity, the only asset that makes a decisive difference between corporatesuccess and failure is the quality of human capital. Employee benefits have proven to be anexcellent tool to optimize the retention of talent and improve an organizations bottom-line. Thequality of an organizations employee benefits establishes and maintains a company's image as acaring employer. Optimum careof employees is a long-term investment that results in asustained competitive advantage for an organization in the times to come. BSLI Group Solutions Advantage:

    An integrated basket of employee benefits solutions that offer incomparable flexible benefits.

    Sound investment management that focuses on safety, stability and profitability of the portfolio.

  • Personalized financial planning for your employee that takes care of his/her changingfinancial needs at every stage of life.

    Quality service initiatives and transparency across all operations, promising superlativeoperational efficiency. Group SolutionsGroup Term Assurance: Helps provide affordable cover to members of a group. Group Gratuity Plan: Helps employers fund their statutory gratuity obligation in a flexible andhassle-free manner. Group Superannuation Plan: A flexible scheme (defined benefit and defined contribution) to provide a retirement kitty for each member of the group.Group Term Assurance: BSL I flexible group term solution helps provide affordable cover to members of a group. Thecover could be uniform or based on designation/rank or a multiple of salary, and can be extendedto all employees between the ages of 18 and 65 years.The benefit under the policy is paid on the event of the members death to the beneficiarynominated by the member. It is a one-year renewable policy where one master policy covers all proposed employees comprising the group, with a minimum group size of 25 persons. Newmembers can join the group and outgoing members can leave the group at any point during the policy term. Highlights include:

    Greater convenience for the employees with relaxed underwriting and medicalrequirements.

    "Free Cover Limits" with simplified underwriting depending upon the number of employees in the group and the level of cover chosen.

    Guaranteed benefit: On death during the term of the contract (while in Service), the sumassured will be paid to the beneficiary of the employee.

    Choice of additional coverage in form an Accident and Disability Benefit Rider and

  • CriticalIllness Cover

    Premium is viewed as a business expense in the year of payment. Group Gratuity Plan:BSLI group gratuity plan helps employers fund their gratuity obligation in a scientific manner.Employers can avail of the tax benefits as applicable to approved gratuity funds. The plan canalso be customized to structure schemes that can provide benefits beyond thestatutoryobligations. Highlights include:

    Wider choice of investments with Market Linked Plans - to meet the diverse financialgoals. We offer 4 investment options (short-term debt, debt and balanced and capitalguarantee plan) where investments will be made in accordance with the fund objectives.

    Transparency through Daily disclosure of Unit Value and regular disclosure of the portfolioof each of the investment option

    Flexibility through switching and contribution redirection option to enable reshuffling of portfolio

    Bundled Life Cover greater value to the employee by packaging life insurance covers withthe gratuity, with minimal amount of underwriting.

    Actuarial services to provide a scientific estimation of the gratuity liability.

    Low explicit charge structure with the conditions for exit specified upfront.

    Enhanced service levels through faster claim settlement, easier access to information andregular statements.

    Complete end to end solution in the legal and regulatory approval process forscheme set up or transfer

  • Employee Benefits:

    The contribution made by the employer is not included in the value of taxable perquisites inthe hands of the employee.

    Gratuity received up to Rs 350000 is exempt from Income tax under Sec 10(10)

    Annual contribution up to 8.33% of salary bill in a financial year is allowed a deduction for the purpose of computation of profits and gains of business.

    Contribution towards past service liability is allowed as deduction as per the Income Taxrules. Group Superannuation Plan:BSLI Superannuation Scheme (for both Defined Benefit and Defined Contribution funds)offers substantial benefits to both employers and employees. The employer and employee canavail of tax benefits applicable to an approved superannuation trust. The scheme will provide for a retirement fund for each participating employee. An employee would be able to choose fromvarious annuity options or opt for partial commutation of corpus at retirement. Highlights include:

    Wider choice of investments with Market Linked Plans to meet the diverse financialgoals. We offer 5 investment options (short-term debt, debt, balanced, growth and capitalguarantee plan) where investments will be made in accordance with the fund objectives.

    Maturity/Death benefit Sum Assured BSLI - Regular Premium:BSLI is a regular premium policy with the following features:

    Individual policy

    Only Life cover

    Term - 3 & 5 Yrs

    Age independent premium

  • Age at entry 18 - 45 Yrs

    Sum Assured Single

    Premium / Year Rs 50 200

    Maturity/Death benefit Rs.5,000 - 20,000

    Death Benefit Sum Assured IRDA: The insurance sector has been opened up in India, as there was an urgent need. The internationalexperience indicates those country with a liberalized insurance sector have witnessed a rapidgrowth in premium volumes enhancing the domestic saving rate. This happened in China,Malaysia and Singapore where a competitive market has led to improvement in Services andquicker settlement of claims. It is also important to note that competition will bring aboutadvancement in information, communication and technology. And rightly therefore a decisionwas taken by the Government of India to open up Insurance sector. The establishment of IRDAin the month of April 2000 has been important development in this direction, making the end of monopoly in the insurance sector. WHY INSURANCE IN INDIA:

    Only 22% of the insurance population has been extended cover. Market penetration is lowand the potential to exploit is high.

    Insurance premium per capita is very low.

    Lack of comprehensive social system benefit and welfare means that demand for pension products is high.

    Huge middle class of approximately 300 Million.1

    Existing insurance company score low on customer service front.The insurance market registered growth in the Asian region even though Indias share in globalinsurance is less

  • than 0.5% (1988) as compared to USA (24.2%) and Japan (21%). Studies haverevealed that in an emerging market, as disposable income rises, Insurance premiums as a ratioof GDP shoots up. The confederation of Indian Industry projected a growth of Life Insurance premiums from Rs.350 Billion at present to Rs.140 Billion. TheGrowth of non-life insurance premium is expected to increase from 75 billion to 375 billion. Outof which, only 10% is tapped by the existing insurer.Insurance even more than banking is a volume game. A very exclusive approach in view isunlikely to provide meaningful numbers. Currently, insurance is bought for the purpose of tax- benefits. A higher percentage of business is in the rural market. The share of rural newBusiness insurance total new business is 55% in terms of policies and 47% in terms of sumassured. However,this needs to be viewed in the light of some recent issues that have beenraised regarding as to what constitutes the rural market. Therefore, private insurers will be bestserved by middle market approach, targeting the customer segments that are presentlyunexploited.How many Indians are aware that LIC has more than 60 Products and GIC has more than 180Products? Not only there is a reduction in the premiums of Life Insurance products have longoverdue since Indian morality rate has decreased three folds in the last 50 years. There is alsoscope to increase the yield on life insurance policies (presently 6%) with proper risk managementin place.It is been debated that insurance business does not produce profit in the first five years crosssubsidization is a feature of Indian market. Even the first portfolio vote that is considered profitable, cross subsidizes other departments. Tariffs reduction is likely to reduce profits; further insurers have to institute proper claims management progress in order to extract efficiencies. At present life insurance business in the country is taxed at 12.5% of the profit in financial year. Thegovernment is soon to present a new model of taxing life insurance companies at internationalrates. New entrants should be well advised to look ahead to the stage where brand strength will be a competitive advantage and sketch their alliances accordingly. In fact, we believe thatalliance related to distribution rather than to produce or technology will prove most valuable inthe long run.1 Banks and financial companies will emerge, as attractive distribution channel for this insurancetrend will be led by two factors, which already apply in other world market. First Banking foodinsurance, fund management and other financial services companies are being to increase their profitability and provide maximum value to their customers. Therefore, they are themselveslooking for a range of products to distribute. In other market notably Europe; this has resulted in bank assurance. Bank entering into the insurance business in India to bank hope to maximizeexpensive existing network by selling a range of products more of a loss alliance betweeninsurance and bank than a formal ownership. Some Indian entrants like ICICI, HDFC andReliance hope to ride theirexisting network and customer bases.REVIEW OF LITERATURE

    universe banking is being accepted. In India, the signs of initial success are already there

  • despitethe fact that it is completely new phenomenon. The factor and principles of why it is a successelsewhere exists in India, and there is no doubt that banks are set to become a significantdistributor of insurance related products and services in the years to come. Rao (2005) analyzed that the insurance industry has grown by 83 percent since the opening upthe sector. Remarking on the performance of the insurance industry, C S Rao, chairman,insurance regulatory & development authority, said public sector players have not suffered withthe opening up of the sector. Insurance premium income has risen to Rs 82,415 crore (Rs 824.15 billion) in 2003-2004, against Rs 45,000 crore (Rs 450 billion) in 2000-01. Rao expects premiumincome in the life insurance sector to rise further by 15-16 percent and non-life insurance premium by 14 percent in 2005-06. The growth comes on the back of healthy demand from themanufacturing sector. Kannan k.v (2006) reviewed in their study that the market potential for private insurancecompanies is found to be greater in the long run as most of the Indians are of the opinion that, private insurance companies would be able to perform well in the future. The private and foreigninsurance companies have too immediate steps in appointing more number of agents and/or advisors in addition to the employees as it has found that agents are the bestchannel to reach thegeneral public regarding selling of insurance products. The private and foreign insurancecompanies have to concentrate on the factors like prevention of loss, assured returns andlong term investment. They can also focus on an insurance amount of Rs. 1-2 lakhs withmoney back policies. Hence, the market has potential. The private and foreign insurancecompanies that are taking immediate steps can tap it. Sasidharan Sanjeev (2006) studied that the insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again.Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessedover a period of almost two centuries .Athma Prashanta(2007) reviewed that in globalization policy, insurance company face adynamic global business environment. The existing insurers are facing challenges from non-4 traditional competitors who are entering into the retail market with new approaches and throughnew channels. While quality of service is the main influencing factor in the finance market, inthe insurance market, product attributes are the main factors that influence the success of insurance companies. Though, there has been growth in life insurance industry over the past fewyears, comparatively, insurance penetration in India has not increased in spite of the considerablegrowth potential of Indian life insurance market. With liberalization, many insurance playershave entered this field from the year 2000, and the task before them now is to identify whatfactors influence in decision-making. In this context, this study assumes importance. The mainobjective of the paper isto identify the factor s which the consumers take into consideration before selecting life insurance products and determine the extent to what these factors are takeninto consideration for choosing the life insurance products. This research is carried out

  • bycollecting primary data from 200 policyholders of Life Insurance Corporation on India throughself-structured questionnaires. The sample consists of 100 policyholders from urban area and 100 policyholders from rural area. C2 test is employed to test if there is any association is used tofind out which factor has more influence. Both, product and non-product attributes have beenfound to be important in selecting a policy but they have been rated differently. Rating isdifferent in urban and rural areas. Hsieh An (2008) investigated the relationship between customer perception of public relations(PR) and customer loyalty to test for the moderating role of brand image in that relationship.Data were collected in a survey of customers of the insurance industry in Taiwan, using aquestionnaire designed on the basis of focus-group discussions with 30 consumers. Hierarchicalregression analysis of data from 367 respondents was used to test two hypotheses. The resultsshow that consumers perception of an organizations PR practice is an antecedent of loyalty.The impact of public relation perception (PRP) on customer loyalty is stronger and moresignificant when the brand image is favorable. The effect of PRP on customer loyalty isnegligible. This study extends previous research by examiningthe moderate of brand image.Further research is indicated, to identify the key moderators of the driving force of PR in relationto customer relationship marketing. This paper proposes an original eight-item scale for theassessment of customer PRP activity, which can be applied in practice to measure itseffectiveness under different brand-image conditions.5 Andreassen Tor (2008) studied the impact of customers perception of customer service(bad/good) on variables that are known to drive revenue, i.e. customer satisfaction, perceivedrelative attractiveness, and commitment. Data were collected through a survey among bank customers. Two groups were sampled: customers who have experienced good or bad customer service. The hypotheses were tested by applying structural equation modeling and running twogroup analysis using the PLS and LISREL softwares. Customers that experience bad customer service do take into account the same variables in their evaluation as do customers thatexperience good customer service. They do however, put different weights on every factor in theevaluation process. Also the strength of the relationship between the variables seems to differ.Typically, analyses showed that customers experiencing bad customer service tend to consider more thoroughly all aspects of the service; the relationships between the variables were stronger and the explained variance of each construct higher, than in the group of customers experiencinggood customer service. However, the paths are not different across the groups. The paper hasonly tested the model and hypothesis in one industry. Future research should test the same modelusing different industries reflecting different customer involvement levels. Practical implicationsfrom this study, service managers can learn that investing in customer service in ongoingcustomer relations is the right thing todo as it is linked to customer equity through customerscommitment to the firm. Second,as customer service in such relationships drives perceivedrelative attractiveness, saving the bottom line by cutting back on the human side of the customer interaction, may harm the firms competitive position in the marketplace.3. NEED SCOPE & OBJECTIVE OF THE STUDY

  • NEED Life insurance is chiefly a risk management tool, meant to offer financial protection to your dependents in the unfortunate event of your death. But in India, as the most other developingmarket, life insurance has come to present more than just risk cover. This particular study isconducted on the topic titled to study customer perception regarding Birla sun life insurancecompany. The aim of this research study is to know about life insurance. It is done to know the banc assurance in India. Banc assurance has mostly been a phenomenal success and, althoughslow to gain pace, is now taking across Asia, especially now that banks are starting to becomemore diverse financial institutions, and the concept of universal banking is being accepted. InIndia, the signs of initial success arealready there despite the fact that it is a completely new phenomenon. SCOPE The study is restricted to Navi-Mumbai region only. The study also analyses the preferencesregarding different life insurance policies of Birla-sun life insurance. For this study 100respondents of Navi-Mumbai are chosen. Now days there are lot of private companies in marketso its important to know what motivates the customer to buy the policy. Birla sun life is thefastest growing private insurance company in India. It determines market share of the various private companies in India. OBJECTIVES

    To determine and analyze the Market Potential of the Birla Sun Life Insurance Company.

    To determine whether the customers are satisfied with the policies of the company.

    To know the the customer awareness regarding the Birla-sun life insurance and its products.

    To study and determine the competitor position in the market.

    To know the future plans of the people for buying the policies.

    Proper understanding and analysis of life insurance industry.

    Conduct market survey on a sample selected from the entire population and derived opinionon that research 1

    RESEARCH METHODOLOGY

  • Research methodology Research means a search for knowledge or gain some new knowledge and methodology can properly refer to the theoretical analysis of the methods appropriate to a field of studyor to the body of methods and principles particular to a branch of knowledge.Research Design : A research design is the arrangement of conditions for the collections andanalysis of data in a manner that aims to combine relevance to research purpose with economy in procedure. Universe The universe of the study is Navi-Mumbai. Sample Unit The sample unit pertaining to the study is 100 respondents of Navi-Mumbai region. Sample Size The sample size of 100 served the purpose of the study. Sample Method The sampling method used is non-probability convenience sampling Methods of data collection Data collection The word data means any raw information, which is either quantitative or qualitative in nature,which is of practical or theoretical use. The task of data collection begins after a research problem has been defined and research design chalked out. While deciding aboutthe method of data collection, the researcher should keep in mind that there are two types of data primary andsecondary. Primary data This is those, which are collected afresh and for the first Time, and thus happen to be original incharacter. There are many ways of data collection of primary data like observation method,interview method, through schedules, pantry Reports, distributors audit, consumer panel etc. TheTeam Managers and employees of both the Department were consulted to get information about procedure of both the online and off line share trading. But the method used by us for the primary data collection was through questionnaires . Questionnaire method 1

    For the collection of primary data I used questionnaire method. A formal list of questions,

  • whichare to be asked, is prepared in a questionnaire and questions are asked on those bases. There aresome merits and demerits of this method. These as under: -Merits: -1. Low cost even when universe is large.2. It is free from bias of interviewer.3. Respondentshave proper time to answer.4. Respondents who are not easily approachable can also be reachable.5. Large samples can be made. Secondary data These are those data, which are not collected afresh and are used earlier also and thus theycannot be considered as original in character. There are many ways of data collection of secondary data like publications of the state and central government, reports prepared byresearchers, reports of various associations connected with business, Industries, banks etc. Andthe method, which was used by us, was with the help of reports of the company. Sample Size I have met 250 people, to know about their perception regarding companies and there policiesafter that I have taken 25 People they have fill up the questionnaire and given response. LIMITATIONS OF INSURANCE

    Lack of awareness among the people This is the biggest limitation found in this sector.Most of the people are not aware aboutthe importance and the necessity of the insurance intheir life. They are not aware how useful life insurance can be for their family members if something happens to them.

    Perception of the people towards Insurance sector People still consider insurance just asa Tax saving device. So today also there is always a rush to buy an Insurance Policy only atthe end of the financial year like January, Februaryand March making the other 9 months dryfor this business.

    Insurance does not give good returns Still today people think that Insurance does notgive good returns. They are not aware of the modern Unit Linked Insurance Plans which areoffered by most of the Private sector players. They are still under the perception that if theytake Insurance they will get only 5-6% returns which is not true nowadays. Nowadays most1 of the modern Unit Linked Insurance Plans gives returns which are many times more thanthat of bank Fixed deposits, National saving certificate, Post office deposits and Public provident fund.

    Lack of awareness about the earning opportunity in the Insurance sector People stilltoday are not aware about the earning opportunity that the Insurance sector gives. After the privatization of

  • the insurance sector many private giants have entered the insurance sector.These private companies in order to beat the competition and to increase their InsuranceAdvisors to increase their reach to the customers are giving very high commission rates but people are not aware of that.

    Increased competition Today the competition in the Insurance sector has became verystiff. Currently there are 14 Life Insurance companies working in India including the LIC(life insurance Corporation of India). Today each and every company is trying to increasetheir Insurance Advisors so that they can increase their reach in the market. This situation hascreated a scenario in which to recruit Life insurance Advisors and to sell life Insurance Policyhas became very- very difficult.DATA ANALYSIS AND INTERPRETATIO

    Table 5.5 : People Have Other Insurance Plan Apart From BsliPeople have other insuranceplan apart from BSLINo. of peoplePercentage

  • Yes7878% No2222%Total 100100% Figure 5.5 : People Have Other Insurance Plan Apart From BsliAnalysis & Interpretation:The objective of fifth question was whether people have insurance plan apart from BSLI. In thesurvey it was found that 78% people have insurance plan other than BSLI while 22% dont haveany other plan .6.Percentage share of different companies in insurance sector.Table 5.6 : Share of different companies 1

    Name of different companiesPercentageLife insurance company 60% Birla Sun Life Insurance 9% Bajaj Aliyanz 11% ICICI 8% Other 12% Total 100% Figure 5.6 : Share of different companiesAnalysis &Interpretation: The objective of this study is to find out the percentage share of different companies in theinsurance sector. it was found that 60% is occupied by LIC,9% by BSLI,11% by Bajajaliyanz,8% by ICICI and 12% by other companies. 7.Market share of private companies.Table 5.7 : Market share of private companiesList ofcompaniesPercentageICICI pru 22.1%1

  • Bajaj Alliaz 13.8% SBI 9.8% HDFC standard 7.7% Birla sun life insurance 7.0% Reliance life 8.0% Max new York 8.0% Tata AIG 7.0% Aviva 3.1% Kotak Mahindra 3.6% Met life 5.3% ING vysya 2.1% Shriram life 1.1% Other 1.1% Total 100% Figure 5.7 : Market share of private companies Analysis & Interpretation: The objective of this study is to find out the market share of different companies in the

  • insurancesector. It was found that icici pru is having the maximum share that is 22.1%.FINDINGS OF THE STUDY FINDINGS

    To be successful in marketing of insurance products, the entire business scenario has to betaken into account.

    During the study to be found that majority of people are aware of life insurance sector.

    During the survey it was observed that major source of information for consumer aretelevision and newspaper and least preference are given to magazines, agents and friends.

    Attractive schemes and brand image are the most important factor that influences the buying behavior of the consumers.1

    Majority of respondents will shift to any other insurance company.

    People are not satisfied with the opted insurance. It was found that the reason for thedissatisfaction of consumer is high premium, delay in claim settlement and poor after saleservice.

    So to achieve a greater insurance penetration, insurance sector companies have to create amore vibrant and competitive industry, with greater efficiency, choice of products and valuefor customers.CONCLUSION CONCLUSION The market potential for private insurance companies is found to be greater in the long run asmost of the Indians are of the opinion that, private insurance companies would be

  • able to perform well in the future. The private and foreign insurance companies have to take immediatesteps in appointing more number of agents and/or advisors in addition to the employees as it has been found out that agents are the best channel to reach the general public regarding selling of insurance products. The private and foreign insurance companies have to concentrate on thefactors like 'Prevention of Loss', 'Assured Returns' and 'Long term Investment'. They can alsofocus on an insurance amount of Rs. 1 2 lakhs with 'money back policies'. Hence, the markethas potential. The private and foreign insurance companies that are taking immediate steps cantap it easily & rapidly.1 RECOMMENDATIONS

    RECOMMENDATIONS 1) Even though most of the policy holders are satisfied with policies, plans they have but somenew attractive insurance plans should be introduce to bind them not to switch over to other companies insurance plans.2) The company should find out the no. of people who are not having any of the insurance plansthrough an intensive market research and motivate them to get insured.3) Leveraging technology to service customers quickly, efficiently and conveniently.4) Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders.5) Company should target each and every class of the society6) Company should provide full information to the customers before targeting so they can takeinterest.

    BIBLIOGRAPHY Books : Kothari C.R. (1990) Research Methodology : Method and Techniques, WishvaParkashan,New Delhi. PP115-117 Bodie. Z, Kane. A & Marcus. J : Essentials of Investments PP242-243 Websites : http://www.economywatch.com/indianeconomy/indian-insurance-sector.html www.birlasunlife.com/birlasunlife/insurance/bsli.../index5.aspx http://www.indianmba.com/Occasional_Papers/OP85/op85.html

  • http://www.banknetindia.com/finance/insure2011.htm http://www.financialexpress.com/news/the-indian-insurance-sector-ii/181428/ Journals : Lect. D.ramkumar(2003), Relationship Marketing The new tantra for life insurancesector. Department Of Management Studies, N.M.S.S. Vallaichamy Nadir College, Nagamalai, Madurai 625019 available athttp://www.google.co.in/interstitial?url=http://www.indiaschools.com/marketing_029.htm last accessed on 07-08-2009. Dr. Ch.rajesham (2004), changing scenario of india insurance sector, department of commerce & Business Management, University P G college, Kakatiya UniversityKhammam, Andhra Pradesh available athttp://www.insuranceinstituteofindia.com/insuranceinst/publication/uploads/journal-jan- jun-04/chapter10..pdf last accessed on 14-08-2009 J.Mehra (2005), innovations in life insurance industry, the financial express, new delhiavailable athttp://www.financialexpress.com/news/innovations-in-life-insurance-industrylast accessed on 15-08-2009.5

    ANNEXURE Questionnaire Name:............................... Age:..Occupation:..Ques.1 Which Birla Sun Life Scheme do you have?Health Retirement Life Health

  • Retirement Life Ques.2 Are you satisfied with the Insurance plan you have?(a) Yes (b) No Ques.3 what attract you towards Birla Sun Life Plans?(a)(b)(c)(d)Ques.4 Are you satisfied with the services provided by the companyRegarding new plans and schemes?(a) Yes (b) No Ques.5 Are you interested to make more investments in Birla Sun Life ?(a) Yes (b) No Ques.6 Have you any other Insurance Plan apart from Birla Sun Life?(a) Yes (b) No Ques.7 If yes, then of which Life Insurance Company?(a) LIC (b) Bajaj Allianz (c) Birla Sunlife (d) Reliance (e) Others 1 Ques.8 If you get any attractive plan than are you ready to switch over?(a) Yes

  • (b) No Ques.9 If you get any attractive plan than are you ready to switch over?(a) Yes (b) No Suggestions: