organizational study-birla sun

7/25/2019 Organizational Study-Birla Sun

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CHAPTER 1

INTRODUCTION

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1.1 INTRODUCTION

The study named An organizational study of Birla Sun Life Insurance

Co. LTD. is conducted at the Punalur branch in ollam district. The

organizational study is intended to access and to ac!uire the

"no#ledge regarding the functional as #ell as the management as$ects

of the organization.

Birla Sun Life Insurance Com$any Limited %BSLI& is a 'oint (enture bet#een

the Aditya Birla )rou$ and Sun Life *inancial Inc.+ a leading international

financial ser(ices organisation. The local "no#ledge of the Aditya Birla

)rou$ combined #ith the e,$ertise of Sun Life *inancial Inc.+ offers a

formidable (alue $ro$osition to customers.

An organization study in(ol(es the study of the structure and functioning of

its de$artments. -rganizing is one of the im$ortant functions of

anagement.

How life insurance works?

There are three $arties in a life insurance transaction/ the insurer+ the insured+

and the o#ner of the $olicy %$olicyholder&+ although the o#ner and the

insured are often the same $erson. *or e,am$le+ if 0ohn Smith buys a $olicy

on his o#n life+ he is both the o#ner and the insured. But if ary Smith+ his

#ife+ buys a $olicy on 0ohn1s life+ she is the o#ner and he is the insured. The

o#ner of the $olicy is called the grantee %he or she #ill be the $erson #ho

#ill $ay for the $olicy&. Another im$ortant $erson in(ol(ed is the beneficiary.

The beneficiary is the $erson or $ersons #ho #ill recei(e the $olicy $roceeds

u$on the death of the insured. The beneficiary is not a $arty to the $olicy+ but

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is designated by the o#ner+ #ho may change the beneficiary unless the

$olicy has an irre(ocable beneficiary designation.

2ith an irre(ocable beneficiary+ that beneficiary must agree to changes in

beneficiary+ $olicy assignment+ or borro#ing of cash (alue.

1.2 OBJECTIVES OF THE STUDY

To get an o(er(ie# of the general insurance industry

To study the o(erall #or"ing of Birla Sunlife Insurance Co. Ltd.

To understand the organizational structure of BSLI Ltd.

To study the functions of different de$artments

To understand S2-T analysis of the organization.

1.3 METHODOLOGY

In the broader sense+ #e can say that there are t#o ty$es of data. They are

3. P4IA45 DATA

Primary Data are those collected by the in(estigator himself for the first

time. *or collecting $rimary data+ I had discussions #ith the manager of the

Punalur Branch+ em$loyees+ staffs+ clients etc.

6. S7C-8DA45 DATA

Secondary Data are those #hich ha(e been collected by some other $erson

for their $ur$ose and $ublished. This #as made from the Com$any9s

#ebsites+ brochures and other documents li"e yearly diaries+ calendars etc.

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1.4SCOPE OF THE STUDY

The study #as conducted for a $eriod of :; days and the sco$e of study is

affected by the limitation of time. The findings and suggestions of the study

ha(e to be $ercei(ed in the frame#or" of these limitations .The main aim

behind the study of researcher is to learn the managerial as$ects of ho# to

$lan+ organize+ im$lement < direct the acti(ities related to the $ro'ect

$ro(ided by =Birla Sunlife Insurance Ltd.9. It hel$s to understand about doing

things in a $rofessional atmos$here. The researcher gets a $rofessional

attitude as an intern inside the organization. The com$any can identify their

recent im$act among customers about their ser(ice !uality and im$ro(e

#hether it needs.

1.5 LIMITATIONS OF THE STUDY

The time allotted for conducting the organizational study #as only :;

days. It is not enough for understanding about the organization in

detail. >na(ailability of some documents #hich #ere confidential.

7m$loyees #ere busy in their #or" so they could not gi(e moreinformation.

There may be errors due to the bias of the res$ondents.

The study is limited to my e,$erience and "no#ledge.

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CHAPTER 2

OVERVIEW OF ORGANISATION &

INDUSTRY

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2.1 INDUSTRY PROFILE

The insurance sector in India has come a full circle from being an o$en

com$etiti(e mar"et to nationalization and bac" to a liberalized mar"et again.

Tracing the de(elo$ments in the Indian insurance sector re(eals the :?;

degree turn #itnessed o(er a $eriod of almost t#o centuries.

A BRIEF HISTORY OF THE INSURANCE SECTOR

The business of life insurance in India in its e,isting form started in India in

the year 3@3@ #ith the establishment of the -riental Life Insurance Com$any

in Calcutta.

Some of the important milestones in the life insurance business in India

are:

336 The Indian Life Assurance Com$anies Act enacted as the first

statute to regulate the life insurance business.

36@ The Indian Insurance Com$anies Act enacted to enable the

go(ernment to collect statistical information about both life and non

life insurance businesses.

3:@ 7arlier legislation consolidated and amended to by the Insurance

Act #ith the ob'ecti(e of $rotecting the interests of the insuring $ublic.

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3? 6E Indian and foreign insurers and $ro(ident societies ta"en

o(er by the central go(ernment and nationalized. LIC formed by an

Act of Parliament+ (iz. LIC Act+ 3?+ #ith a ca$ital contribution of

4s. crore from the )o(ernment of India.

Boasting of the largest number of o$erational life insurance $olicies in the

#orld+ the Indian insurance industry has emerged as a serious destination in

the global insurance mar"et. >ntil 3+ the business of insurance in India

#as the e,clusi(e $ri(ilege of t#o stateo#ned cor$orationsFthe Life

Insurance Cor$oration of India %LIC& and the )eneral Insurance Com$any of

India %)IC&.

The )o(ernment of India too" a ma'or ste$ to#ards liberalization of this

industry in arch 6;;; and brought into effect the Insurance 4egulatory

De(elo$ment Authority Act %I4DA Act&. The I4DA Act o$ened the mar"et

by doing a#ay #ith all entryle(el restrictions on $ri(ate insurers. Thereafter+

it has been four years of consistent gro#th. 2ith the current $otential

$remium income of the country estimated India is seen as the si,th largest

mar"et in the #orld.

2hile @;G of its $o$ulation remains #ithout life insurance and some of the

#orld1s lo#est health and nonlife insurance co(er le(els+ the $otential of the

#orld1s se(enth largest and second most $o$ulous country cannot be

o(erloo"ed. Pros$ecti(e insurers ha(e a lot to gain from the :36 million

middleclass consumers in India+ #ho 3; ha(e the financial ability to

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$urchase insurance. 2ith only 6.G of the country1s insurable $o$ulation

currently insured+ the mar"et still needs to be ta$$ed effecti(ely.

THE INDIAN INSURANCE MARKET

*rom the Indian Life Insurance Com$any Act in 336 to the 34DA Act/ in

3+ regulation of insurance business in the country has come a long #ay.

Insurance is a sub'ect of federal la# and all insurance business in India has

been nationalized. The t#o ma'or legislations dealing #ith insurance are the

Insurance Act+ 3:@ and the I4DA Act+ 3. arine insurance in the

country is go(erned by the Indian arine Insurance Act+ 3?:. Similarly+

fire and marine insurance are dealt #ith under the Insurance Act+ 3H6 and

the )eneral insurance Business %8ationalization& Act+ 3H6. These

enactments contain $ro(isions relating to the constitution+ management and

#inding u$ of insurance com$anies and the conduct of those ty$es of

insurances.

A Tariff Ad(isory Committee %TA)& is established under the Insurance Act

to regulate rates+ terms+ conditions and ad(antages that maybe offered by

insurers for )eneral Insurance Business relating to *ire+ arine %ull&+

otor+ 7ngineering and 2or"men1s Com$ensation in India.

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In 3+ the I4DA #as set u$ under the I4DA Act. Com$anies+ as$iring to

carry on insurance and reinsurance business in India+ are re!uired to register

#ith I4DA+ #hich is the sole authority for granting licenses to agents. There

is neither a restriction on the license numbers that may be granted nor a

system of com$osite licenses for life and nonlife insurance com$anies in

India. Insurance com$anies are strictly forbidden from dealing #ith $roducts

beyond their sco$e of license. This im$lies that+ a life insurance com$any

cannot sell nonlife insurance and (ice (ersa. Insurance agents are+ ho#e(er+

allo#ed to sell both life and nonlife $roducts %com$osite insurance&.

In tune #ith the Indian go(ernment1s system of chec"s and balances im$osed

through sector s$ecific *oreign Direct In(estment %*DI& limits+ I4DA

$rohibits 3;;G foreign o#nershi$ of an Indian insurance com$any. An

Indian $romoter is re!uired to in(est either #holly or team u$ #ith a foreign

insurer+ #hich can o#n no more than 6?G of the shares in any ne# (enture.The Indian $romoter must then sell the ma'ority of his shares to the Indian

$ublic through a $ublic offering after 3; years and retain only u$ to 6?G of

the shares that is+ the same $ercentage as that of the foreign in(estor.

I4DA is careful in granting licenses and has set u$ strict standards for all

as$ects of insurance in India. 2ith the limit on *DI in the sector+ the

go(ernment ensures that staterun agencies such as the LIC and )I) can

maintain their $rominence.

In 0une 6;;:+ the La# Commission $re$ared a $a$er identifying 3: $otential

grounds of re(ision to the Insurance Act and the I4DA Act+ including merger of

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rele(ant $ro(isions of the t#o acts+ as #ell as harmonization of the Insurance Act

#ith other rules and regulations in the sector. The finance ministry is already

#or"ing to#ards com$rehensi(e amendments to the Insurance Act and the I4DA

Act+ #hich #ill further sim$lify $rocedural issues. A ma'or indication of the

go(ernment1s efforts to in(ite Pri(ate Indian and foreign insurers to in(est in the

liberalized mar"et is the *DI ca$ hi"e announced by the finance ministry in 6;;E.

These changes+ ho#e(er+ re!uire formal amendments to the I4DA Act+ #hich are

still to be ado$ted.

Major Players in the Market

The Indian insurance sector till recently com$rised of only t#o state insurers

Fthe LIC+ for life insurance+ and the )I)+ for general insurance. In

December 6;;;+ )I) subsidiaries %-riental Insurance Co. Ltd.+ 8e# India

Assurance Co. Ltd.+ 8ational Insurance Co. Ltd. and >nited India Insurance

Co. Ltd.& #ere restructured as inde$endent insurance com$anies. At the

same time+ )I) itself #as con(erted into a national reinsurer. In 0uly 6;;6+

Parliament $assed a bill+ #hich cut the formal relationshi$ bet#een the four

subsidiaries and )I).

In December 6;;;+ )I) subsidiaries %-riental Insurance Co. Ltd.+ 8e#

India Assurance Co. Ltd.+ 8ational Insurance Co. Ltd. and >nited India

Insurance Co. Ltd.& #ere restructured as inde$endent insurance com$anies.

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At the same time+ )I) itself #as con(erted into a national reinsurer. In 0uly

6;;6+ Parliament $assed a bill+ #hich cut the formal relationshi$ bet#een the

four subsidiaries and )I).

Private Players- ife and !on-ife Insurance

Begun in 3@3@+ #ith the establishment of the -riental Life Insurance

Com$any in Calcutta+ the business of !"# !$%'($)# in India has come a

long #ay. The most $o$ular $roducts in this sector are 17ndo#ment1 and

1oney Bac"1 $olicies. ore than @;G of the Indian life insurance business

comes from these t#o $roducts.

"he major players in this field include:

Birla Sun Life Insurance Co. Ltd.

Dabur C)> Life Insurance Com$any P(t. Ltd.

Ba'a' Allianz Life Insurance Co. Ltd.

ICICI Prudential Life Insurance Co. Ltd.

A(i(a Life Insurance Co. Ltd.

etlife India Insurance Co. P(t. Ltd.

I8) Jysya Life Insurance Co. P(t. Ltd.

Life Insurance Cor$oration of India

a, 8e# 5or" Life Insurance Co. Ltd.

-m ota" ahindra Life Insurance Co. Ltd.

SBI Life Insurance Co. Ltd.

D*C Standard Life Insurance Co. Ltd.

Tata AI) Life Insurance Co. Ltd.

4eliance Life Insurance Co. Ltd

Consistent gro#th has been obser(ed in the $ri(ate insurance mar"ets.

Though LIC has been in the country for a long time+ it didn1t ta$ much of the

rural mar"et. It only concentrated on the endo#ment and money bac"

$olicies. Pri(ate insurers had ta"en an ad(antage of this and had come out

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#ith inno(ati(e $roducts li"e >nitLin"ed Insurance Products %>LIPs&. As a

com$etition no#+ LIC had also started coming out #ith >LIPs.

The $ri(ate insurance mar"et has gro#n des$ite the continued e,istence of

the $ublic sector $ro(iders. LIC has concentrated on retaining its mar"et in

traditional $roducts li"e endo#ment and money bac" $olicies+ and has not

slac"ened its hold in the rural areas. This has $rom$ted many of the $ri(ate

com$anies to mar"et ne# and inno(ati(e $roducts as a means of

com$etition. LIC in turn is no# mo(ing to#ards ne# $roducts li"e unit

lin"ed life $roducts #hich to date ha(e mainly been sold by the $ri(ate

sector.

T*# $+$,!"# sector $rimarily consists of fire and miscellaneous ris"

insurance $olicies. Also+ since motor (ehicle co(er is com$ulsory in India+ it

acts as another chief source of business in the nonlife sector.

Major players in the non-life sector in India include

Allianz Ba'a' )eneral Insurance Co. Ltd.

ICIC3 Lombard )eneral Insurance

I**C- To"yo )eneral Insurance

4eliance )eneral Insurance

4oyal Sundaram Alliance Insurance

THE REINSURANCE MARKET

2hilst its %)IC1s& four inde$endent subsidiaries no# loo" after general

insurance+ )IC itself is the $rimary reinsurer in the Indian mar"et. All

insurance com$anies in India ha(e to gi(e at least 6;G of their reinsurance

business to )IC. )IC reinsures their $otential liabilities further #ithwww.fnal-yearproject.com | www.troubleshoot4ree.com/yp/

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international com$anies such as S#iss 4e and unich 4e. This ensures that

)IC1s role+ as the national reinsurer+ is maintained des$ite foreign $layers in

the fast e(ol(ing Indian insurance mar"et.

FOREIGN INFLU-

In the last three years+ des$ite the e!uity ratio restrictions+ foreign com$anies

ha(e collecti(ely managed to corner a considerable share of the Indian

insurance mar"et. In(estment generally ta"es t#o forms -utsourced BP-

o$erations and direct shareholding. A recently $ublished 4esearch and

ar"ets 4e$ort in an American insurance 'ournal em$hasized this trend and

set out ad(antages for the >S com$anies to consider India as an insurance

BP- center. Some of the ad(antages include 7stablished destination for

outsourcing+ lo# costs+ nearshore ser(ices+ Indian IT outsourcers e,tending

relationshi$s #ith insurers+ and Indian (endors e,$anding to establish a

multilocation $resence to minimize the ris" to their business from foreign

com$etition.

*or e,am$le LIC+ hitherto the (irtual mono$olist in the country1s insurance

sector has recently #itnessed a decline in its ne# $remium business.

Bet#een A$ril 6;;E and *ebruary 6;;+ its share of first year $remium

dro$$ed by .:G+ i.e.+ to HH.@HG from a mar"et share of @H.66G in the

$receding year. But+ there is still not tooK much cause for concern for Indian

insurers/ foreign insurers at $resent ha(e a share of 'ust 6G in the country1s

life insurance business and 3G in the nonlife insurance business.

GROWTH

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Insurance business in India is gro#ing at the rate of 36;G annually and

I4DA has estimated that it is currently of the order of 4s. @36.; cr. 2hen

combined #ith ban"ing ser(ices+ it adds about HG of the country1s )D4

Insurance $enetration %i.e.+ $remiums as $ercentage of )DP& has increased

from 6.:6G in 6;;; to 6.@@G in 6;;:. Li"e#ise+ insurance density %i.e.+

$remium $er ca$ita& has increased from 4s. E:.@H in 6;;; to 4s. H66.;6

in 6;;:.

Such changes ha(e caused a climb in the country1s ran"ing from 6:rd in the

#orldFin terms of total $remium (olumesFin 6;;;+ to 3th in 6;;:. India1s

share in the #orld mar"et has increased from ;.E3G to ;.G during the

same $eriod.

There has been an @:G increase in the $remium collected in the three years

follo#ing the $assage of the I4DA Act. As already noted+ the total $remium

collected by the insurers both life and nonlife in the year 6;;E; is

estimated to be about 4s. 6:.E: bn during the fiscal year 6;;E;+ %4s. ??

bn in life and about 4s. 3H?.3 bn in nonlife $remiums&. By com$arison+

estimates for the year 6;;;;3 $ut the total $remiums at about 4s. EE; bn

%4s. :6 bn in life and 4s. @@ bn in nonlife $remiums&. The a(erage size of

life insurance co(er before $ri(atization #as around 4s. ;+:6;. That has

since risen to about 4s. @;+;;.

The stateo#ned life insurerFLIC+ along #ith 3: $ri(ate $layers+ mo$$ed u$

4s. ?.66 bn in $remium in the first four months of this fiscal by selling

about ?6 la"h ne# $olicies. And la"h ne# $olicies ha(e been sold by LIC

alone #hich hel$ed it to ma"e an @.HEG rise in $remium income at 4s. E.H

bn during A$ril0uly+ this fiscal. The traditional life insurance co(er+ $ro(ided



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by LIC+ has so far been dominated by the sa(ings $olicies. Term life1 $olicies

ha(e accounted for less than 6G of the insurance $remium of LIC. The ne#

life insurance com$anies are concentrating on term life $olicies in the ho$e

that this #ill be their main stream of business. Pri(ate $layers ha(e an

a(erage $olicy size of 4s. 3+ 3+;;;. The 3: $ri(ate $layers ha(e increased

their mar"et share to 6:.@3G from 3H.6@G in 6;;E. In the forefront is Birla

Sunlife #ith a mar"et share of H.36G ma"ing a EG gro#th in business at

4s. E.?E bn. Then comes+ Ba'a' Allianz+ D*C Standard+ Tata AI)+ ICICI

Prudential+ SBI Life+ a, 8e# 5or" and A(i(a.

DISTRIBUTION AND INTERMEDIARIES

The industry is loo"ing at ne# modes of de(elo$ment and distribution such

as technology. The IT e,$enses of the insurance sector in India+ at $resent+

are estimated at 4s. @;3;; cr $er annum. Public sector giant+ LIC+ has large

in(estments in IT. Among $ri(ate $layers+ Birla Sun Life is a ma'or IT

in(estor #ith 4s. : cr s$ent since ince$tion.

Amidst the steady industry gro#th is the small+ but e(erincreasing role of

intermediaries. >ntil t#o years ago+ distribution of life insurance $roducts

#as only through $ure life insurance agents #ho did not sell any other

$roduct. Today+ there are alternate channels li"e bancassurance+ bro"ers+

cor$orate agents and direct mar"eting through the Internet. ICICI Prudential

Life+ the second largest life com$any in the country+ attributes 6@G of its

business $remium in 6;;: to alternate distribution contributions.

THE INACTIVE HEALTH INSURANCE MARKET

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The number of medical insurance $olicies sold in India has increased from

H.: million in 6;;3;6 to 3;.6@ million in 6;;:;E. o#e(er+ the lac" of a

com$rehensi(e and accurate database has im$eded the gro#th of the health

insurance sector+ since this is (ital for effecti(e business $lanning and ris"

allocation. The 2orld ealth 4e$ort 6;;; estimated $ri(ate s$ending in

India to be @HG of the total health s$ending. -f this+ @E.?G #as made from

outof$oc"et e,$enditure.K This is des$ite I4DA1s 4s. ;+;;; cr estimation

of the mar"et size and 3;G annual gro#th rate.

ealth insurance schemes in India+ at $resent+ are in the form of indemnity

based $roducts under #hich+ $ayment to the health $ro(ider is first made by

the sic" indi(idual and this amount is later reimbursed %$artly or fully& by the

insurance com$any to the insured. A large section of the $o$ulation cannot

afford such large $ayments at the time of illness e(en if these $ayments are

reimbursed later and+ thus tend not to ta"e u$ this ty$e of insurance.

*urthermore+ the system $ro(ides for reimbursement only in case of

hos$italization+ not for out$atient care+ or allo$athic treatment or alternati(e

systems of medical care.

)o(ernment em$loyees in India+ unli"e the general $ublic+ en'oy the benefit

of being co(ered under se(eral state $ro(ided schemes such as the

7m$loyees States Insurance %7SI& and Central )o(ernment ealth Schemes

%C)S& *or the rest of the $o$ulation+ there is the ediclaim+ #hich offers

co(er for more general medical treatment+ and 10an Arogya Bima1 #hich

co(ers emergency medical treatment+ only. Postliberalization+ ne# general

insurers ha(e introduced de(iants of the ediclaim #hile life insurers ha(e

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introduced some health riders to their life $olicies+ #hich ha(e a negligible

effect.

ealth insurance in India remains a minor $ercentage of the $ublic sector

nonlife insurers1 business $ortfolios. The situation has not im$ro(ed e(en

after liberalization and the $ri(ate com$anies ha(e only focused on

establishing their business net#or"s by enlarging their life $ortfolios. -nly

;.6G of India1s 3.3 billion $eo$le are co(ered under medical insurance as

against America #here HG of the $o$ulation has health co(er.

2ith the su$$ly of health ser(ices %$articularly in$atient facilities& being#ea" in rural and remote areas+ demand for insurance has naturally been

constrained. ealth insurance re!uires a #ellinformed+ sizeable and

relati(ely $ros$erous middle class to gro#. This demogra$hy no# e,ists in

India+ and is sho#ing e(ery sign of getting larger. As a result+ both $ublic and

$ri(ate sector com$anies no# seem to be interested in ta"ing the re!uired

ste$s to create a better base for the gro#th of health insurance. As one of the

main constraints to $o$ularizing health insurance has been the inade!uacy of

data+ I4DA has concentrated on identifying the e,isting obstacles to database

creation and the manner in #hich they can o(ercome. The subgrou$ of the

2or"ing )rou$ on ealth Insurance made certain recommendations for a

methodology of collecting data on a uniform basis. I4DA is ta"ing u$ this

issue #ith industry members+ and is $ressing for im$lementation. Third Party

Administrators %TPAs& are being loo"ed at as a ma'or tool for enhancement.

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2.2COMPANY PROFILE

Birla Sun Life Insurance Com$any Limited %BSLI& is a 'oint (enture bet#een

the Aditya Birla )rou$ and Sun Life *inancial Inc.+ a leading international

financial ser(ices organisation. The local "no#ledge of the Aditya Birla

)rou$ combined #ith the e,$ertise of Sun Life *inancial Inc.+ offers a

formidable (alue $ro$osition to customers.

Sun Life *inancial and its $artners today ha(e o$erations in "ey mar"ets

#orld#ide+ including India+ Canada+ the >nited States+ the >nited ingdom+

ong ong+ Phili$$ines+ 0a$an+ Indonesia+ China and Bermuda. Sun Life

*inancial Inc. had assets under management of o(er >S :@?.@6 billion+ as

on :3 arch 6;;H. Sun Life *inancial Inc. is a leading $erformer in the life

insurance mar"et in Canada.

BSLI in its fi(e successful years of o$erations has contributed significantly

to the gro#th and de(elo$ment of the life insurance industry in India. It

$ioneered the launch of >nit Lin"ed Life Insurance $lans amongst the

$ri(ate $layers in India. It #as the first $layer in the industry to sell its

$olicies through the Ban" assurance route and through the internet. It #as

also the first $ri(ate sector $layer to introduce a $ure term $lan in the Indian

mar"et. This #as su$$orted by sales $ractices+ #hich brought a degree of

trans$arency that #as entirely ne# to the mar"et. The $rocess of getting sales

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illustrations signed by customers+ offering a free loo" $eriod on all $olicies+

#hich are no# industry standards #ere introduced by BSLI.

Being a customer centric com$any+ BSLI has in(ested hea(ily in technology

to build #orld class $rocessing ca$abilities. BSLI has co(ered more than one

and a half million li(es since ince$tion and its customer base is s$read across

3;; cities in India. All this has assisted the com$any in cementing its $lace

amongst the leaders in the industry in terms of ne# business $remium

income. Birla Sun Life Insurance %BSLI&+ one of the leading $ri(ate lifeinsurers in India today announced the inimitable achie(er+ cric"eter a$il

De( as their cor$orate brand ambassador. The cric"eting su$remo #ill be

endorsing BSLI in all its mar"eting initiati(es. Birla Sun Life Insurance is a

(aluedri(en brand #hich has a national brand recall of H; $er cent. The

ob'ecti(e of a$$ointing a brand ambassador is to gro# its brand recall as it

goes national in its distribution reach and fuel business gro#th. As a brand

ambassador+ a$il De( #ill $lay a "ey role in the brand and $roduct

mar"eting and $romotional acti(ities. BSLI has al#ays used an integrated

mar"eting a$$roach+ #hich #ill be strengthened further.

Birla Sun Life Insurance %BSLI&+ in its fi(e successful years of o$erations+

has contributed significantly to the gro#th and de(elo$ment of the life

insurance industry in India. It $ioneered the launch of unit lin"ed life

insurance $lans amongst the $ri(ate $layers in India. It #as the first $layer in

the industry to sell its $olicies through the banc assurance route and through

the internet. It #as the first $ri(ate sector $layer to introduce a $ure term $lan

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BSLI, Punalur

in the Indian mar"et. This #as su$$orted by sales $ractices #hich brought a

degree of trans$arency that #as entirely ne# to the mar"et. The $rocess of

getting sales illustrations signed by customers and offering a free loo" $eriod

on all $olicies+ #hich are no# industry standards+ #ere introduced by BSLI.

Being a customercentric com$any+ BSLI has in(ested hea(ily in technology

to build #orld class $rocessing ca$abilities. BSLI has co(ered more than a

million li(es since ince$tion and its customer base is s$read across more than

3;;; to#ns and cities in India. All this has assisted the com$any in

cementing its $lace amongst the leaders in the industry in terms of ne#

business $remium income. The com$any1s current ca$ital base is 4s.6;crore.

#bout the #ditya $irla %roup

The Aditya Birla )rou$ has a turno(er close to 4s.:@+;;; crore %as on :3

arch 6;;@& and is one of the largest business houses in India. It en'oys a

leadershi$ $osition in all the sectors in #hich it o$erates. 2ith o(er H

business units s$anning the South 7ast Asian belt+ Africa+ Canada and the

> among others+ it is rec"oned as India1s first multinational cor$oration.

The grou$ is anchored by eight la"h shareholders+ #ith a mar"et

ca$italization of 4s.:+ E;; crore.

A >S 6 billion cor$oration in the League of *ortune ;;+ the Aditya Birla

)rou$ is anchored by an e,traordinary #or" force of 3:;+;;; em$loyees+

belonging to E; different nationalities. -(er ?; $er cent of its re(enues flo#

from its o$erations across the #orld.

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BSLI, Punalur

The Aditya Birla )rou$ is a dominant $layer in all its areas of o$erations (iz/

Aluminium+ Co$$er+ Cement+ Jiscose Sta$le *ibre+ Carbon Blac"+ Jiscose

*ilament 5arn+ *ertilisers+ Insulators+ S$onge Iron+ Chemicals+ Branded

A$$arels+ Insurance+ utual *unds+ Soft#are and Telecom. The )rou$ has

strategic 'oint (entures #ith global ma'ors such as Sun Life %Canada&+ ATSA&+ the Tata )rou$ and 8) Insulators %0a$an&+ and has (entured into

the BP- sector #ith the ac!uisition of Trans2or"s+ a leading IT7SMBP-

com$any.

#bout Sun ife &inancial Inc

Sun Life *inancial Inc. is a leading international financial ser(ices

organisation $ro(iding a di(erse range of #ealth accumulation and $rotection

$roducts and ser(ices to indi(iduals and cor$orate customers. Tracing its

roots bac" to 3@?+ Sun Life *inancial and its $artners today ha(e o$erations

in "ey mar"ets #orld#ide+ including Canada+ the >nited States+ the >nited

ingdom+ ong ong+ the Phili$$ines+ 0a$an+ Indonesia+ India+ China and

Bermuda. As of :3 arch 6;;@+ the Sun Life *inancial grou$ of com$anies

had total assets under management of >S :E: billion.

Sun Life *inancial Inc. trades on the Toronto %TSN&+ 8e# 5or" %85S7& and

Phili$$ine %PS7& stoc" e,changes under tic"er symbol KSL*K.

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BSLI, Punalur

VISION

To be a #orld class $ro(ider of financial security to indi(iduals and cor$orate

and to be amongst the to$ three $ri(ate sector life insurance com$anies in

India

MISSION

To be the first $reference of our customers by $ro(iding inno(ati(e+ need

based life insurance and retirement solutions to indi(iduals as #ell as

cor$orate. These solutions #ill be made a(ailable by #elltrained

$rofessionals through a multi channel distribution net#or" and su$erior

technology.

-ur endea(or #ill be to $ro(ide constant (alue addition to customers

throughout their relationshi$ #ith us+ #ithin the regulatory frame#or". 2e

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BSLI, Punalur

#ill $ro(ide career de(elo$ment o$$ortunities to our em$loyees and the

highest $ossible returns to our shareholders

BOARD OF DIRECTORS

r. umar Birla

r. Donald A Ste#art+

r. Bish#anath 8 Puranmal"a

r. A'ay Srini(asan

r. )ary Comerford

r. Suresh 8 Tal#ar

r. )ian P )u$ta

is ighness ahara'a ) Singh

r. Ste$han 4a'otte Dr. Bharat Singh

INVESTMENT COMMITTEE

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BSLI, Punalur

r. B. 8. Puranmal"a

r. 7ugene Lundrigan

r. A'ay Srini(asan

r. Ji"ram ehmi

r. ayan" Bath#al r. *abien 0eudy

r. Ji"ram ota"

s. eerti )u$ta

MANAGEMENT TEAM

M'. V!'(/ M#*/! M'. M(0($ B(*(

President < Chief Chief *inancial -fficer

7,ecuti(e -fficer

M'. M('!+ B'(($( M'. E.N. G+#!(

Chief -$erating -fficer ead Direct Sales

*orce

M'. A/! P$)**! M'. B*(#%* S($*!

Senior Jice President ead )rou$ Life ncertainties and e(en

the bestlaid $lans can go #rong. ere9s ho# you can gi(e your child a 3;;G

safe and assured tomorro#+ #hate(er the uncertainties. Smart id is

es$ecially designed to $ro(ide fle,ibility and safeguard your child9s future

education and lifestyle+ ta"ing all $ossibilities into account. Choose from

amongst a bas"et of E $lans

Smart id regular $remium Smart id unitlin"ed regular $remium

Smart id unitlin"ed regular $remium II

Smart id unitlin"ed single $remium II

#ll these plans offer you:

*inancial Benefits

Total $eace of mind+ e(en if you are not around

Sum Assured is $aid immediately All future $remiums are #ai(ed

Policy benefits continue

De(elo$ment Allo#ance

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BSLI, Punalur

All Smartid $lans can be enhanced #ith the Accident < Disability Benefit

4ider and Income Benefit 4ider. 5ou can also an Accident Benefit 4ider to a

Smartid 4egular Premium $olicy+ and a 2ai(er of Premium 4ider %2-P&

to Smartid unitlin"ed regular $remium $olicy.

INVESTMENT PLANS

L!"# !$ II

Life Lin" II is a uni!ue $lan that combines the security of a life insurance

$olicy #ith the o$$ortunity of en'oying high returns on your in(estments+

#ithout the mar"etris"s com$romising on the $rotection of your familyQ

(eath $enefit: The Sum Assured under the $roduct has 6 o$tions+ either

;;G of the initial $remium or 3;G of the initial $remium. In the e(ent of

an unfortunate death+ the beneficiary #ill recei(e higher of the (alue of units

or the initial death benefit+ less any #ithdra#als.

)ithdrawal $enefit: -ne can ma"e $artial #ithdra#als from the

accumulated (alue of the $olicy after com$letion of one $olicy year.

&le*ibility: Choose from four fund o$tions+ based on your in(estment

ob'ecti(e and ris" a$$etite. If at a later stage your financial $riorities change+

you can s#itch bet#een the (arious fund o$tions+ absolutely free+ E times a

year.

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BSLI, Punalur

RETIREMENT PLANS

Life 7,$ectancy has been rising ra$idly and today you can e,$ect to li(elonger than your earlier generations. *or you+ this increase #ill mean a

longer retirement life+ stretching into a cou$le of decades. BSLI 4etirement

Solutions that combine the best of insurance and in(estment. These solutions

are de(elo$ed to ensure your $eace of mind for the years to come.

3& 2hy $lan for retirementR6& o# much should I set aside for retirementR

:& The im$act of inflation on your retirement sa(ingsE& 2hy $lan earlyR& About Annuities

)hy plan for retirement?

*or too many $eo$le+ the 'oy of retirement after years of hard #or" is

ecli$sed by the financial uncertainties that it brings. Des$ite all the $lanning

and sa(ing+ you can ne(er sure #hether your money #ill last a lifetime.

4etirement $lanning offers a #ay to ensure a more en'oyable+ stress freetomorro#. A $rudent $lan #ill ensure that increasing life e,$ectancy+ higher

inflation and increasing ta,es do not eat a#ay into your hard earned sa(ings.

How much must I set aside for retirement?

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BSLI, Punalur

To ensure a comfortable retired life+ you #ould be #ise to in(est money into

additional a(enues li"e $ension $lans. o# much you need to in(est can be

ans#ered by ans#ering some !uestions such as

3. o# long do you ha(e to sa(e that amount before retirementR

6. 2here can you in(est your retirement moneyR

:. o# much ris" are you #illing to ta"e on your in(estmentsR

GROUP SOLUTIONS

In an era of com$etiti(e $arity+ the only asset that ma"es a decisi(e

difference bet#een cor$orate success and failure is the !uality of human

ca$ital. 7m$loyee benefits ha(e $ro(en to be an e,cellent tool to o$timize

the retention of talent and im$ro(e an organization9s bottomline. The !uality

of an organization9s em$loyee benefits establishes and maintains a

com$any1s image as a caring em$loyer. -$timum care of em$loyees is a

longterm in(estment that results in a sustained com$etiti(e ad(antage for an

organization in the times to come.

$SI %roup Solutions #dvanta'e

An integrated bas"et of em$loyee benefits solutions that offer

incom$arable fle,ible benefits.

Sound in(estment management that focuses on safety+ stability and

$rofitability of the $ortfolio.

Personalized financial $lanning for your em$loyee that ta"es care of

hisMher changing financial needs at e(ery stage of life.

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BSLI, Punalur

uality ser(ice initiati(es and trans$arency across all o$erations+

$romising su$erlati(e o$erational efficiency.

GROUP TERM ASSURANCE

BSLI fle,ible grou$ term solution hel$s $ro(ide affordable co(er to

members of a grou$. The co(er could be uniform or based on

designationMran" or a multi$le of salary+ and can be e,tended to all

em$loyees bet#een the ages of 3@ and ? years. The benefit under the $olicy

is $aid on the e(ent of the member9s death to the beneficiary nominated by

the member. It is a oneyear rene#able $olicy #here one master $olicy

co(ers all $ro$osed em$loyees com$rising the grou$+ #ith a minimum grou$size of 6 $ersons. 8e# members can 'oin the grou$ and outgoing members

can lea(e the grou$ at any $oint during the $olicy term.

RURAL PLANS

BSLI 4ural Products are designed to meet the needs of the rural consumers.

These $roducts offer the follo#ing features

Lo# and Affordable Premiums

Life Co(er

Sa(ings -$tion

assle free $rocedure

PLANS FOR NRI>S

Being a#ay from India doesn1t mean you ha(e to com$romise the safety and

security of your lo(ed ones. In fact+ your sa(ings from your time o(erseas

can be easily canalized to meet your family1s needs no# and in the future.

So+ #hether it9s your dream to retire in your hometo#n/ to secure funds for

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BSLI, Punalur

your children1s education/ or to build assets+ BSLI has a range of solutions

that can be customized to meet your needs.

CHAPTER IIIwww.fnal-yearproject.com | www.troubleshoot4ree.com/yp/

4


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BSLI, Punalur

DEPARTMENT STUDY

ORGANI?ATIONAL CHART

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BSLI, Punalur

DIFFERENT DEPARTMENTS IN THE BSLI L8.

There are de$artments in the organization #hich are classified on the basis

of the functions #hat they are $erforming+ #hich are listed belo#+

3. Personnel and Administration De$artment

6. Claims De$artment

:. *inance De$artment

E. -$erations De$artment

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anaer

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BSLI, Punalur

. ar"eting De$artment

1< PERSONNEL & ADMINSTRATION DEPARTMENT

The Personnel and Administration De$artment is an im$ortant de$artment of

the organization being the one #hich is in close contact #ith both the

management as #ell as the em$loyees. The $ersonnel de$artment is headed

by the Personnel anger and is assisted by the De$uty anger.

ST4>CT>47 -* T7 D7PA4T78T


CI7* A8A)74

Personnel

D7P>T5 A8A)74


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BSLI, Punalur

F$)!+$%

The Personnel De$artment is res$onsible to "ee$ filled the (arious $ositions

of the organizational structure.

a& Identifyin' the job re+uirements

To fill a $osition #ith the right $erson #e ha(e to understand the sco$e of

e(ery 'ob and ascertain the re!uirements #hich #ould meet both the

indi(idual and organizational re!uirements.

b, ecruitin'.

4ecruiting is the $rocess of attracting candidates to filled $ositions in the

organizational structure.

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A8A)74

%Administration&

-**IC74

Administration

Assistants


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BSLI, Punalur

c& Selectin'/ placin' and promotin'

Selection is the $rocess of choosing the best candidates from among the

recruits #ho #ould fit into the 'ob as $er re!uirements.

d, Performance #ppraisal

Performance a$$raisal is ascertaining ho# a $erson the $erforming in his

$resent managerial $osition. It hel$s in determining #ho is eligible to be

$romoted to a higher $osition.

e, "rainin'

Training includes those acti(ities done to facilitate the learning $rocess the

em$loyees and is mostly a short term acti(ity #hich hel$s to do their 'obs

better.

C+/:#$%(!+$

The com$ensation structure is categorized into t#o com$onents+

*i,ed Pay Jariable Pay

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BSLI, Punalur

Total cost to com$any

F!=#8 P(0

B(%!) P(0

7m$loyees ha(e the fle,ibility of fi,ing the monthly basic (arying

bet#een :E;G of the total cost of the com$any. Ta, im$lication *ully Ta,able as $er ta, slabs as a$$licable.

P'+!8#$ F$8

7m$loyee contribution is 36G of the monthly basic #ith a matching

contribution made by the com$any.

Ta, im$lication 8il G'(!0

A$$licable at all the em$loyees #ith a minimum of one year of

continous ser(ice in the com$any. 7m$loyee contribution is to E.@3G

of the monthly basic Ta, im$lication 8il

F#=!7# :(0

HRA

7m$loyee has the fle,ible to fi, a $ercentage of basic salary as 4A.

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BSLI, Punalur

Ta, im$lication Least of the follo#ing and is e,em$t from income

ta,.o ;G %for metro cities&M E;G %for non metro cities& of basic or

o Actual 4A oro 4ent $aid by the em$loyee sub'ect to a ma,imum of 3;G of

basic

C+$#0($)# (+($)#

Con(eyance allo#ance is $aid to ta"e care of em$loyee9s tra(el from

residence to the $lace of $osting the bac". 8ot a$$licable for

em$loyee9s co(ered under car hiring scheme. Ta, im$lication 8ot ta,able u$ to ?;;Mannum

S:#)!( A+($)#;

Any unaccounted amount from the total cost to com$any not claimed

under any other com$onent can be claimed under s$ecial allo#ance.

There is no restriction on the amount to be ta"en under this bead. Ta, im$lication *ully ta,able.

L#(# T'(# A%%!%($)# @LTA


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BSLI, Punalur

LTA shall be sanctioned only #hen an em$loyee $roceeds on lea(e for

a minimum $eriod of #or"ing days at a stretch. An em$loyee can claim LTA ad(ance u$ to HG of the entitlement %3

days $rior to $roceeding on lea(e&. The ad(ance needs to be settled

#ithin :; days of 'ourney.

C+/:($0 L#(%#8 A))+//+8(!+$ @CLA

organizational study-birla sun

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