http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.INTRODUCTION Insurance = Collective bearing of Risk

Insurance is nothing but a system of spreading the risk of one onto the shoulders of many. While it becomes somewhat impossible for a man to bear by himself 100% loss to his own property or interest arising out of an unforeseen contingency, insurance is a method or process which distributes the burden of the loss on a number of persons within the group formed for this particular purpose.

Basic Human trait is to be averse to the idea of risk taking. Insurance, whether life or non-life, provides people with a reasonable degree of security and assurance that they will be protected in the event of a calamity or failure of any sort.

Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance.

• Insurance Indemnifies Assets & Income. Every Asset has a value and generates Income to its Owner. There is a normally expected Life-time for the Asset during which time it is expected to perform. If the Asset gets lost earlier, being destroyed or made Non-functional through an Accident or other unfortunate event the Owner is Prejudiced. Insurance helps to reduce CONSEQUENCES of such Adverse Circumstances which are called Risks

• Insurance is the science of spreading of the risk. It is the system of spreading the losses of an Individual over a group of Individuals

• Insurance is a Method of sharing of financial losses of a few from a common fund formed out of Contribution of the many who are equally exposed to the same loss• What is uncertainty for an Individual becomes a certainty for a Group. This is the basis of All Insurance Operations. Thus insurance convert uncertainties to certainty

DEFINITIONSThe definition of insurance can be made from two points:

1 Functional definition.2 Contractual definition.

Functional definition

http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Insurance is a co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to insure themselves against the risk.

General DefinitionInsurance has been defined to be that in which a sum of money as a premium is paid in consideration of the insurer’s incurring the risk of paying a large sum upon a given contingency. In the words of John Magee, “Insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risks that attach to individuals.” Fundamental DefinitionIn the words of D.S. Hansell, “Insurance accumulated contributions of all parties participating in the scheme.”

Contractual DefinitionIn the words of justice Tindall, “Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer’s incurring the risk of paying a large sum upon a given contingency.” HISTORY OF INSURANCEWorldwide HistoryTo talk about the insurance companies, insurance in modern form had occurred after the Great Fire in London in 1666 which destroyed myriad houses. Nicholas Barbon, following the disaster, had established England's first fire insurance company (The Fire Office) in1680. In the United States, the first insurance company which provided fire insurance was formed in South Carolina; in 1732.The practice of perpetual insurance against fire was popularized by Benjamin Franklin. In 1752, he founded the Philadelphia Contribution ship for the Insurance of Houses. In India, the Oriental Life Insurance Company was started in 1818 by Europeans, much before independence. The first indigenous insurance company in India was started in the year 1870 in the form of Bombay Mutual Life Assurance Society.BabyloniaThe roots of insurance might be traced to Babylonia, where traders were encouraged to assume the risks of the caravan trade through loans that were repaid (with interest) only after the goods had arrived safely—a practice resembling bottomry and given legal force in the Code of Hammurabi (c.2100 B.C.). The Phoenicians and the Greeks applied a similar system to their seaborne commerce. The Romans used burial clubs as a form of life insurance, providing funeral expenses for members and later payments to the survivors.EuropeWith the growth of towns and trade in Europe, the medieval guilds undertook to protect their members from loss by fire and shipwreck, to ransom them from captivity by pirates, and to provide decent burial and support in sickness and poverty London

http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.In London, Lloyd's Coffee House (1688) was a place where merchants, ship-owners, and underwriters met to transact business. By the end of the 18th cent. Lloyd's had progressed into one of the first modern insurance companies. In 1693 the astronomer Edmond Halley constructed the first mortality table, based on the statistical laws of mortality and compound interest. The table, corrected (1756) by Joseph Dodson, made it possible to scale the premium rate to age; previously the rate had been the same for all ages.New York CityThe New York fire of 1835 called attention to the need for adequate reserves to meet unexpectedly large losses; Massachusetts was the first state to require companies by law (1837) to maintain such reserves. The great Chicago fire (1871) emphasized the costly nature of fires in structurally dense modern cities. Reinsurance, whereby losses are distributed among many companies, was devised to meet such situations and is now common in other lines of insurance. The Workmen's Compensation Act of 1897 in Britain required employers to insure their employees against industrial accidents. Public liability insurance, fostered by legislation, made its appearance in the 1880s; it attained major importance with the advent of the automobile In recent years insurance premiums (particularly for liability policies) have increased rapidly, leaving unprecedented numbers of Americans uninsured. Many blame the insurance conglomerates, contending that U.S. citizens are paying for bad risks made by the companies. Insurance companies place the burden of guilt on law firms and their clients, who they say have brought unreasonably large civil suits to court, a

trend that has become so common in the United States that legislation has been proposed to limit lawsuit awards. Catastrophic earthquakes, hurricanes, and wildfires in late 1980s and the 90s have also strained many insurance company's reserves. Insurance Indian historyThe history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered more riskier for coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The General insurance business in India, on the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies.Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon.

http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that it would create much needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State lead planning and development.The (non-life) insurance business continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies- National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC).The general insurance business was nationalized after the promulgation of General Insurance Business (Nationalizations) Act, 1972. The post-nationalization general insurance business was undertaken by the General Insurance Corporation of India (GIC) and its 4 subsidiaries: 1. Oriental Insurance Company Limited; 2. New India Assurance Company Limited; 3. National Insurance Company Limited; and 4. United India Insurance Company Limited.

Some of the important milestones in the life insurance business in India are: 1850: Non life insurance debuts with triton insurance company. 1870 :Bombay mutual life assurance society is the first Indian owned life insurer 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 :The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: 1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance of India.1957 General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968 The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies’ viz. the National Insurance Company

http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. Malhotra Committee In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial System where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included:i) StructureGovernment should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate.ii) CompetitionPrivate Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state.iii) Regulatory BodyThe Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance- a part of the Finance Ministry- should be made independentiv) InvestmentsMandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time)v) Customer ServiceLIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industryThe committee emphasized that in order to improve the customer services and increase the coverage of insurance policies, industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body- The Insurance Regulatory and Development Authority. Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. Since being set up as an independent statutory

http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products. PURPOSE OF INSURANCE

1. Insurance spreads the economic burden of losses by using funds contributed by members of the group to pay for them. Thus, it is a loss spreading device.

2. The fundamental purpose of insurance however is neither the spreading nor the prevention of losses. Rather, it is reduction of the uncertainty which is caused by awareness of the possibility of loss.

3. An insurance scheme provides certainty for the individual members of the group by averaging loss costs. The contribution made by the individual to the group is assumed, on the basis of predictions, to be his share of losses suffered by the group.

In exchange for this contribution, he is assured that the group will assume any losses that involve him. He transfers his risk to the group and averages his loss costs, thus substituting certainty for uncertainty. He pays a certain premium instead of facing the uncertainty of the possibility of large loss. FUNCTION OF INSURANCE

The functions of Insurance can be bifurcated into three parts:

1. Primary Functions2. Secondary Functions3. Other Functions

The primary functions of insurance include the following:

Provide ProtectionThe primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk.

Collective bearing of risk Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons Exposed to a particular risk is paid.

Assessment of risk

http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also .

Provide Certainty Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain.

Research and publicity

Insurers also spend money in research and publicity in creating risk consciousness amongst which has a far reaching effect on reduction in national waste.The secondary functions of insurance include the following:

Prevention of Losses Prevention of losses causes lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured.

Small capital to cover larger risks Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty.

Contributes towards the development of larger industries Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery.

If improves efficiencyThe insurance eliminates worries and miseries of loans at death and destruction of property. The carefree person an devote his body and soul together for better achievement. It improves not only his efficiency, but the efficiencies of the masses are also advanced.

It helps economic progressThe insurance by protecting the society from huge losses of damage, destruction and death, provides an initiative to work hard for the betterment of the masses. The next factor of economic progress. The capital is also immensely provided by the masses. The property, the valuable assets, the man, the machine and the society cannot lose much at the disaster.

The other functions of insurance include the following:

Means of savings and investment Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance.

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Source of earning foreign exchange Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways.

Risk Free trade Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover.

NATURE OF INSURANCE

Sharing of riskInsurance is a device to share the financial losses which might be fall on an individual or his family on the happening of specified event. The event may be death, incase of life insurance, marine perils, marine insurance, fire in fire insurance and other certain events in general insurance. Co-operative DeviceThe most important feature of every insurance plan is the co-operation of large number of persons who, agree to share the financial loss arising due to a particular risk which is insured. All co-operative devices, there is no compulsion here on anybody to purchase the insurance policy.

Value of riskThe risk is evaluated before inuring to charge the amount of share of an insured, here is called, consideration or premium. If there is expectation of more loss, higher premium may be charged. So, the probability of loss is calculated at the time of insurance.

Payment at ContingencyThe payment is made at a certain contingency insured. If the contingency occurs, payment is made. Since the life insurance is a contract of certainty, because the contingency, the death or the expiry of term, will certainly occur, the payment is certain.

Amount of paymentThe amount of payment depends upon the value of loss occurred due to the particular insured risk provided insurance is there up to that amount. In case of life insurance, the insurer promises to pay a fixed sum on the happening of an even. (Either death or the expiry of the term).

Large number of insured personsThe co-operation of a small number of persons may also be insurance but in that case, the cost of insurance to each number may be higher. In case of large number of persons opposite condition is applicable.

Insurance is not gambling

http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.The insurance is just opposite of gambling. In gambling by bidding the persons exposes himself to risk of losing ,in the insurance the insured is always opposed to risk and will suffer loss if he is not insured.

Insurance is not charityCharity is given without consideration but security and safety provided by insurance is not possible without consideration or premium. It provides security and safety to an individual and to the society although it is a kind of business because inconsideration of premium it guarantees the payment of loss.

PRINCIPLE OF INSURANCE

Principles of Co-operation.

Insurance is co-operative device. If one person is providing for his own losses, it can not be strictly insurance because in insurance, the loss is shared by a group of persons who are willing to co-operate. It is the duty and responsibility of the insurer to obtain adequate funds from the members of the society to pay them at the happening of the insured risk. Thus, the shares of loss took the form of premium. Today, all the insured

give a premium to join the scheme of insurance. Thus, the insured are co-operating to share the loss of an individual be payment of a premium in advance.

Principles of Probability

The loss in the shape of premium can be distributed only on the basis of theory of probability. The chances of loss are estimated in advance to affix the amount of premium. Since the degree of loss depends upon various factors, the affecting factors are analyzed before determining the amount of loss. With the help of this principle, the uncertainty of loss is converted into certainty. The insurer will have not to suffer loss as well have to gain windfall. Therefore, the insurer has to charge only so much of amount which is adequate to meet the loss. The probability tells what the chances of loss are and what will be the amount of losses.

The insurance, on the basis of past experience, present conditions and future prospects, fixes the amount of premium. Without premium, no-operation is possible and the premium can not be calculated without the help of theory of probability, and consequently no insurance is possible. So, these two principles are the two main legs of insurance. FORMATION OF INSURANCE REGULATION AND DEVELOPMENT AUTHORITY ACT

The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a strong and powerful supervisory and regulatory authority for insurance. Post

http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.nationalization, the role of Controller of Insurance diminished considerably in significance since the Government owned the insurance companies. But the scenario changed with the private and foreign companies foraying in to the insurance sector. This necessitated the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation.The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business). The act extends to the whole of India and will come into force on such date as the Central Government may, by notification in the Official Gazette specify. Different dates may be appointed for different provisions of this Act. The Act has defined certain terms; some of the most important ones are as follows appointed day means the date on which the Authority is established under the act. Authority means the established under this Act.Interim Insurance Regulatory Authority means the Insurance Regulatory Authority set up by the Central Government through Resolution No. 17(2)/ 94-lns-V dated the 23rd January, 1996. Words and expressions used and not defined in this Act but defined in the Insurance Act, 1938 or the Life Insurance Corporation Act, 1956 or the General Insurance Business (Nationalization) Act, 1972 shall have the meanings respectively assigned to them in those Acts. A new definition of "Indian Insurance Company" has been inserted. "Indian insurance company" means any insurer being a company(a) which is formed and registered under the Companies Act, 1956 (b) in which the aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed twenty-six per cent. Paid up capital in such Indian insurance company (c) whose sole purpose is to carry on life insurance business, general insurance business or re-insurance business.

COMPANY PROFILEBirla Sun Life Insurance Company Limited (BSLI)

+ = Vision

To create long term value along with market leadership

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• To help people mitigate risks of life, accident, health and money at all stages and under all circumstances• Enhance the financial future of our customers, including enterprises. Values• Integrity• Commitment• Passion• Seamlessness

Birla Life Insurance Co Ltd market share of the company increased from 1.22% to 2.11% in 2007-08. The company moved to the 7th position in 2007-08 from 8the a year before, pushing down Max New York Life insurance company.About Birla Sun Life Insurance Company Limited? Birla Sun Life Insurance pioneered the unique Unit Linked Life Insurance Solutions in India.

? Within 4 years of its launch, BSLI has cemented its position as a leading player in the Private Life Insurance Industry.

? There has been focus on Investment Linked Insurance Products, supported with protection products to maintain leadership in product innovation.

? Multi Distribution Channels- Direct Sales Force, Alternate Channels and Group offering convenient channels of purchase to customers.

? Web-enabled IT systems for superior customer services.

? First to have issued policies over the Internet.

? Corporate governance and a high degree of transparency in all business practices and procedures.

? First to have an operational Business Continuity Plan.

Strong fundamentals based on the Aditya Birla group's local insight and Sun Life financial global expertise.PARTNERSHIPBriefing mediapersons, Birla said, "The insurance sector, which is a knowledge based industry is to be one of our core business. Our vision is to be among the top five insurance companies in India and in this regard, we have aligned with one of the best companies-the Sun Life financial group.The partnership is based on values, mutual respect, integrity and customer focus. Sun life financial is indeed delighted to be back in India in the insurance sector after almost 40 years."

http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose."Our group holding is 74 per cent, with Indian Rayon and Birla Global Finance Ltd having a stake of 69 per cent and 5 per cent respectively, while Sun Life financial holds 26 per cent. The current capitalization of this venture stands at Rs 120 crore." He informed the gathering that the current funding for the insurance business "in no way affects Indian Rayon's existing cap". "Considering the immense growth potential of the life insurance business, this venture will definitely create value for our three lakh shareholders. Our group's extensive presence in India as well as our network of employees, shareholders and distributors is a great advantage, which our insurance business will leverage. We have a receptive population of over a million stakeholders," Birla added. He also said that the new team for the insurance company was declared and that Don Steward, chairman & CEO of Sun Life financial services, takes over as the chairman of the Birla Sun Life insurance board of directors. Kumarmanagalam Birla continues as a director on the board. The total 12 directors have been nominated consisting of six directors each from Aditya Birla group and Birla Sun Life insurance company. JOINT VENTURESBirla Sun Life under the management of Mr. Nani B. Javeri as the CEO is a Rs. 180 crore equity capital company. Birla Sun Life Insurance Co. Ltd is a 26:74 joint venture between Sun Life Financial Services Canada and Aditya Birla Group. Just four years down the industry pipeline, Birla Sun Life Insurance or BSLI has secured a lead in private life insurance market.About the Aditya Birla Group:The Aditya Birla Group has a turnover exceeding Rs. 28,000 crores (as on 31 March 2004) and is one of the largest business houses in India. It enjoys a leadership position in all the sectors in which 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. The group is anchored by 72,000 employees and has seven lakh shareholders, with an asset base of over Rs.23,000 crores.About Sun Life Financial Inc.:Sun Life Financial Inc. is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of 31 March 2004, the Sun Life Financial group of companies had total assets under management of USD 282 billion.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol "SLF".

SPAN OF ORGANISATION

• CEO• CFO• Senior Vice President- Direct Sales Forces

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KEY PERSONS

Name Nani JaveriDesignation CEO

Name Anil J. JhalaDesignation CFO

Name E. N. GoveiaDesignation Senior Vice President - Direct Sales Force

Name P. NandagopalDesignation Senior Vice President - Alternate Channel and Group Life

Name K.S. GopalakrishnanDesignation Senior Vice President and Appointed Actuary

Name Anjana GrewalDesignation Vice President - Marketing and Communication

Name Mayank BathwalDesignation Vice President - Planning, Legal and Finance

Name M.C RaisinghaniDesignation Vice President - Technology

Name Snehal Shah

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Name Mario BraganzaDesignation Vice President - Client Services and Underwriting

Name Murli IyerDesignation Vice President - Field Operations Direct Sales Force

BUSINESS PERFORMANCE IN THE LAST FISCAL• Achieved a first year weighted annualized premium of Rs. 2,204 crores, as against Rs. 953 corers in the previous year• a growth of over 131%, amongst the highest in the industry• improved market share considerably• ranked number six amongst private sector players• Revenue growth of 94% to Rs. 4,012 corers, from Rs. 2,069 crores last year• Launched 10 products in individual life segment and 2 in Group business segment• An aggressive growth in customer contact points• No. of branches has grown from 137 to 339, with another 261 branches going on stream from Q1 2008-09• No. of agents has grown from 56, 000 to 115, 000, over the year• Strong fund performanceFUTURE PERFORMANCE PLANNINGComparative study of BSLI’s Business Performance Q1 FY 2007-08 and Q1 FY 2008-09BSLI (Q1 FY 2007-08) BSLI (Q1 FY 2008-09)Market Share-4.9% Market Share-8.15%Growth Rate (Individual + Group) Growth Rate (Individual + Group)22% 194%Annualized Premium Equivalent (APE) Annualized Premium Equivalent (APE) Rs. 185.3 Rs. 507.4

Birla Sun Life Insurance Company Ltd. (BSLI), the pioneer of Unit Linked Life Insurance plans amongst the private life insurers in India, has registered strong growth amongst the private life insurers, as per reports for the Q1 of the fiscal 2008-09. As per the Q1 FY 2008-09 figures, BSLI has a market share of 8.15% amongst private life insurance players as compared to BSLI’s market share for Q1 FY 2007-08, which was 4.9%, indeed a significant leap. BSLI’s life insurance business has achieved a growth rate of 194%. The total APE (Annualized Premium Equivalent) is at Rs. 507.4crores.“Birla Sun Life Insurance continues its momentum into the new fiscal year with an increased market share of 8.15% for Q1 FY 2008-09 (amongst private life insurance players) and a growth rate of 194%. The first quarter FY 2008-09 has seen a ramp up on account of our expansion in distribution network with 600 branches nationally as on July

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Protection Policies:o Birla Sun Life Term Plano Premium Back Term PlanSavings Based Policies:o Birla Sun life Insurance Saral Jeevano Birla Sun Life Insurance Gold-Pluso Supreme Lifeo Dream Plano Classic Life Premiumo Simply Lifeo Prime Life Premiumo Prime Lifeo Life Companiono Flexi Cash Flowo Flexi Save Pluso Flexi Life Lineo Single Premium BondRetirement Solutions:o Flexi secure Life Retirement Plan IIChild Policy:o Children's Dream PlanPolicies For Rural India:o Bima Suraksha Supero Bima Dhan Sanchayo Bima Kavach YojanaAccident Protection Policieso Accidental Death Ridero Accidental Death Dismemberment Ridero Term Ridero Critical Illness Ridero Waiver PF Premiumso Critical Illness Plus Ridero Critical Illness-Woman RiderBesides these the Group Insurance Products by Birla Sun Life Insurance include Group Protection Solutions that offers you insurance at affordable prices, Group Superannuation and Gratuity Plans, Single Premium Group Term Plan and Group Credit Guard Plan.

Special NRI Insurance Policies on offer by Birla Sun life include:o Prime Life Premium

http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.o Prime Lifeo Life Companiono Flexi Life Line Plano Flexi Save Pluso Flexi Cash Flowo Classic Life Premiero Single Premium Bondo Simply Life

The current range of products offered by BSLI includes:

Flexi Life Line

Flexi Cash Flow

Flexi Save Plus

Flexi Secure Life

Classic Life Premier

Birla Sun Life Term & Premium Back Term Plan

Life Companion

Prime Life & Prime Life Premier

Gold Plus

Simply Life

Single Premium Bond

Supreme Life

Children’s Dream Plan, Dream Plan

Birla Sun Life Insurance Gold-Plus Plan

Birla Sun Life Bima Kavach Yojana

Birla Sun Life Group Protection Solutions

Birla Sun Life Social Development Plan

Birla Sun Life Group Gratuity Plan

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Birla Sun Life Group Superannuation Plan

Birla Sun Life Group Interest Credit Plan

Birla Sun Life Credit Guard PlanCHANNELS OF DISTRIBUTIONThe distribution channels by BSLI include? Direst sales force? Alternate channels? IT systems ? Groups to ensure convenience of the potential customers? Highly professional dealing? Corporate governance Complete transparency has earned Birla Sun Life Insurance Co Ltd the trust of its customers.PIONEERING ACTIVITIESThe many pioneering activities by Birla Sunlife include:-? Unit Linked Life Insurance Solutions? Investment Linked Insurance Products? Web-Based Insurance Policies sale Birla Sun Life Insurance Company Limited also offers:-? MF (Mutual Fund)? International equity funds ? Dream plans in insurance products that give you complete transparency and value-for-money.ASSET UNDER MANAGEMENTThe total Assets Under Management (AUMs) of the company are approximately Rs.4500 corers as of June 30, 2007. BSLI has one of the highest persistency ratios of 97.7% in terms of premium, amongst private life insurers. Its Outstanding Claims Ratio continues to be the best in the industry at 0.41%.FUTURE GROWTH STRATEGIES PLANS? Mumbai March 5 Birla Sun Life Insurance hopes to grab a fair share of the growing insurance market and be among the top three in two years. ? Mr Vikram Mehmi, President and CEO, said that the accent would now be on aggressive growth. ? "The life insurance industry is growing at 100 per cent. We plan to introduce innovative products and expand our channel reach," said Mr Mehmi, who took over as CEO in December 2006. He was earlier CEO of Idea Cellular. ? The company has registered 40 per cent growth in new business premium to Rs 579 crore in the first 10 months of the fiscal, against Rs 414 crore in the previous year. ? On lower rate of growth when compared to other insurance companies, Mr Mehmi said: "To a certain extent it was a conscious decision, since other companies do not have many long-term products. Besides, there has been a change in the leadership of the company."

http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.? In terms of maturity value, most of Birla Sun Life's products have a term of 15 years, said an official. ? The company is exploring distribution tie-ups with other companies in the Birla group, Mr. Mehmi said. ? "We will evaluate all the opportunities we have to build synergies among the group companies and try to evolve a low-cost distribution model." ? Currently, the company has a tie-up with Idea Cellular to offer group term insurance cover for subscribers aged 18-35. ? It is in talks with non-life insurance companies to design a composite micro-insurance product. ? Mr. Mehmi also said that the company's average premium per policy was close to the industry average of Rs 20,000. ? It is likely to be lower in the future as insurers reach out to smaller towns and lower income groups. ? On breaking even, he said that if the company had to grow, break-even would have to be postponed. ? On Monday the company launched the `Children's Dream Plan,' a unit-linked insurance plan with guaranteed maturity benefits. ? The plan combines a guaranteed return on savings with upside potential based on the performance of the investment funds. ? The policy administration charge is customized and is deducted on a monthly basis.QUESTION THAT WE ASKED TO BIRLA SUN LIFEIMPORTANT QUESTIONBDM (BUSINESS DEVLOPMENT MANAGER) What is BSLI' s investment philosophy and stock picking strategy? BSLI:- Our primary objective is to provide CONSISTENT and long-term returns to our policyholders. For stock picking, our emphasis is on outstanding track record of management, clear visibility of growth, financial strengths and a scalable business model. We focus on blue-chip companies with excellent track record, management vision and the best degree of corporate governance.What are the various fund options provided to policyholders by BSLI?BSLI:-BSLI has been a pioneer of Unit Linked plans in India. Our product range on the Individual life and Group front largely consists of Unit Linked plans. We have a range of fund options on our individual and group plans. The equity component in this fund option varies from 10 % to 90 %. We recommend our policyholders to select their fund options based on their risk tolerance level and the future need of capital. Some of the fund options listed below for Individual life plans are: Fund Equity ComponentProtector Up to 10 %Builder Up to 20 %Enhancer Up to 35 %Creator Up to 50 %Magnifier Up to 90 %

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KEY STRENGTH

Financial ExpertiseAs a joint venture of leading financial services groups. BIRLA SUN LIFE has the financial expertise required to manage your long-term investments safely and efficiently.

Range of SolutionsThey have a range of individual and group solutions, which can be easily customized to specific needs. There group solutions have been designed to offer you complete flexibility combined with a low charging structure.

Strong Ethical Values: BIRLA SUN LIFE is an ethical and Cultural Organization. False selling or false commitment with the customers is not allowed.

Most respected Private Insurance Company.

Comment India’s insurance sector is likely to clock an unprecedented growth of over 200 per cent by 2009-10. During this period, private players will grow at 140 per cent owing to their aggressive marketing techniques as against a growth rate of 35-40 per cent of state owned insurance companies.The Chamber expects the total insurance business to reach Rs. 2000 billion in the next two years from current level of Rs. 500 billion. On account of intense marketing strategies adopted by private insurance players, the market share of state owned insurance companies like GIC, LIC and others have already come down to 70 per cent in the last four-five years from over 97 per cent and more intense competition is likely to be witnessed in the near future.Till very recently, the insurance sector was largely under the government. However, many private multinational firms have now entered the scene, such as HDFC, ICICI, Kodak Mahindra and Birla Sunlife.Anyone interested in this field can either work in one of the areas of insurance: life, general and postal or become an agent or an insurance surveyor. In an insurance company a person can take a, job in.The skills required to succeed in this field are almost the same as those for any marketing or sales-related job. ? You have to be outspoken, gentle, persuasive, calm, and very good at whatever responsibility you take. You have to remember that here you have to persuade people to go for your insurance policy as against the hordes of such policies available in the market.To be eligible for a license, an insurance surveyor must have one of the following: Fellowship of associate ship through the exam held by the Institute of Insurance

http://www.final-yearprojects.co.cc http://troubleshoot4free.com/fyp/ One place for Projects, Presentation, seminar, summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Surveyors and Adjusters (IISA), Mumbai? Degree or diploma in architecture from a recognized university With increasing awareness for life insurance, the customer base & mix is changing rapidly. Birla Sun Life Insurance has been on a high growth path. The report clearly shows how BSLI is emerging as the preferred life insurance provider for higher age brackets. An increase in customers in the less than 1 laky income group validates there efforts in increasing spread and reach. For YTD January 2008. BSLI’s New Business Premium stood at Rs.1259.20 cores, a 117% increase over same period last year. The AUM for Birla Sun Life Insurance is in excess of Rs.6590 cores as on 29th February, 2008. Its Outstanding Claims Ratio is 0.41%. BSLI has a pan-India branch presence of 339 branches with over 1, 00,000 advisors nationally, out of which over 500 advisors are members of the prestigious Million Dollar Round Table (MDRT). BSLI has insured over 2 million lives since inception, comprising over 1.5 million through its individual business and the rest through its Group business.Birla Sun Life Insurance (BSLI) in its 7 successful years of operations has contributed significantly to the growth and development of the life insurance industry in India. It pioneered the 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 the Internet. 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 entirely new to the market. The process of getting sales illustrations signed by customers, offering a 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 2 million lives since inception and its customer base is spread across more than 1500 towns and cities in India. All this has assisted the company in cementing its place amongst the leaders in the industry in terms of new business premium income.