Académique Documents
Professionnel Documents
Culture Documents
Submitted To
Session
2008-11
Project Guide:
Ms. Monika Sharma
Internal Project Guide
Submitted By:
Aazam Abdal
SAS IIT&R MOHALI
Roll no. 81010320001
ACKNOWLEDGEMENT
also
thank
Ms.
Monika
Sharma
for
their
constant
I am grateful also to the entire staff of Birla sun life insurance ltd
who helped me to collect the relevant data and get the real gist of
current scenario.
I would also like to extend sincere thanks to few people who were
not part of our project but without their help things would not have
been as easy as they were.
CONTENTS
1. Introduction to insurance
2. Objectives
3. Fundamental principles of insurance
4. Reasons for taking a life insurance policy
5. Vision, Mission, Values
6. Company Profile
7. Sales Procedure
8. Companys Products
8.1 Flexi Plans
8.2Classic Life Premier
8.3 Gold plus II Plan
8.4 Supreme Life Plan
8.5 Platinum plus Plan
9. Funds by BSLI
10. Conclusion
11. Recommendation
12. Bibliography
13. Annexure
Insurance,
the year also when the first Insurance Act was passed by
the British parliament. The years subsequent to the
Swedishi Movement saw the emerging of several insurance
companies.
The end of the year 1955, there were 245 insurance
companies and provident societies out of which 16 were
non-Indian companies. These companies were nationalized
in 1956 and brought under one umbrella the life insurance
corporation of India, which enjoyed monopoly of life
insurance business, till almost up to the end of year
2000.By enacting the IRDA Act 2000,the government of
India effectively ended LICs monopoly and opened the
doors for private insurance companies
FUNDAMENTAL PRINCIPLES OF
INSURANCE
Some useful terms in Insurance:
A) INDEMNITY
A contract of insurance contained in a fire, marine, burglary
or any other policy excepting life assurance and personal
accident and sickness insurance) is a contract of indemnity.
This means that the insured, in case of loss against which
the policy has been issued, shall be paid the actual amount
of loss not exceeding the amount of the policy, i.e. he shall
be fully indemnified. The object of every contract of
insurance is to place the insured in the same financial
position, as nearly as possible, after the loss, as if his loss
had not taken place at all. It would be against public policy
to allow an insured to make a profit out of his loss or
damage.
B) UTMOST GOOD FAITH
Since insurance shifts risk from one party to another, it is
essential that there must be utmost good faith and mutual
confidence between the insured and the insurer. In a
contract of insurance the insured knows more about the
subject
matter
of
the
contract
than
the
insurer.
finances.
D) Tax Concessions
Income tax concessions are available to individuals and
corporate houses that adopt insurance policies. Many have
been making investments in Insurance with the sole aim of
enjoying tax benefits. This naturally increases spending
power. Since the investments increases the economic
activities in the country automatically increases.
VISION
To be a world class provider of
financial security to individuals and
corporates and to be amongst the
top three private sectors life
insurance companies in India.
MISSION
To be the first preference of our
customers by providing innovative,
need based life insurance and
retirement solutions to individuals
as well as corporates. These
solutions will be made available by
well-trained professionals through
a multi channel distribution
network and
Superior technology.
Our endeavor will be to provide
constant value addition to
customers throughout their
relationship with us, within the
regulatory framework.
We will provide career
development opportunities to our
employees and
The highest possible returns to our
shareholders.
VALUES
Integrity: Honesty in
every action.
Commitment: Deliver
on the promise
Passion:
Energized
action
Seamlessness:
Boundary less in letter & spirit
Speed:
One
step
ahead always
COMPANY PROFILE
Birla Sun Life A Coming Together Of Values
Birla Sun Life is a joint venture between The Aditya
Birla Group, one of the largest business house in India and
Sun Life Financial Inc., a leading International Financial
Services Organization. The local knowledge of the Aditya
Birla Group combined with the expertise of Sun Life
Financial Inc. offers a formidable protection for our future.
The Aditya Birla Group is led by its chairman- Mr. Kumar
Manglam Birla. The Group has over 88000 employees
across all its units worldwide. Some of the key
organizations with the group are Hindalco, Grasim, Aditya
Birla Nuvo, etc.
The group is India's leading business house with a number
of key organizations. These are as follows:
1. Grasim
2. UltraTech Cement Ltd
3. Hindalco
4. Indian Aluminium Company Ltd
5. Aditya Birla Nuvo
6. Idea Cellular Ltd.
7. Birla Sun Life Insurance Co.Ltd
8. Birla Sun Life Asset Mgmt. Co.Ltd
9. Birla Sun Life Distribution Co. Ltd
10. PSI Data Systems
11. Indo Gulf Fertilizers Ltd.
12. Birla Global Finance Ltd
3. Life Insurance
the
industry
to
sell
its
policies
through
the
(ii)
SUSPECTING
PROSPECTING
APPOINTMENT
FOLLOW UPS
SALES CLOSED
OFFICE WORK
further
business,
only
if,
existing
COMPANY PRODUCTS /
PLANS
All the plans associated with BSLI are Unit Linked Plans.
Flexi Plans
Flexi Plans have three variants. These variants are:
1. Flexi Save Plus (Endowment Plan)
2. Flexi Cash Flow (Money Back Plan)
3. Flexi Lifeline (Whole of Life Plan)
Features:
If
the
life
insured
is
minor,
3. Death Benefits:
Age at time of
Death
30 days to 1 year
Age 1 Year to 60
Year
Death Benefits
Fund Value Only
Higher of Sum Assured less all partial withdrawals made in 24
months preceeding the death of life insured or the fund value or
On or After
attainment of 60
the life insured attained the age 58 or the fund value or the
Years
Charges:
1. Mortality Charges: These charges are deducted by
canceling units on a monthly basis at the prevailing
NAV. The annual mortality charges per 1000 sum
assured for sample ages are as follows:
Age
20
30
40
50
60
Male
1.016 1.171 2.150 5.532 13.732
Female 0.896 1.163 1.657 4.030 10.660
2. Partial Withdrawal Charges: 2 withdrawals in a
policy year are free of charge. Rs100 for every
additional partial withdrawal are charged.
Features:
Eligibility:
Entry Age:
Minimum: 30 days for 20 & 30 term
8 years for 10 terms
30 years for whole life
Maximum: For 10 years term- 60 years
For 20 years term- 50 years
For 30 years term- 40 years
For Whole Life- 60 years
Duration:
Minimum: 10 years
Maximum: 70 years (assuming whole life to
be 100 years)
regular
coverage
paying period.
For 20 yrs, 30yrs term
and Whole Life- 5yrs, 10
yrs or regular coverage
paying period.
Premium Investment: Premium collected is invested in
Seven Investment Fund Options:
1. Assure
2. Protector
3. Builder
4. Enhancer
5. Creator
6. Magnifier
7. Maximiser
Benefits:
1. Guaranteed Addition: It is in the form of additional
units, which is added to the fund value on the 10 th
policy anniversary and on every 5th policy
anniversary thereafter, while policy is in effect.
2. Partial Withdrawal Options: Partial Withdrawals
can be made after 3 policy years or when the life
insured attains maturity, whichever is later. The
minimum partial withdrawal amount is Rs.10000
Charges:
1. Premium Allocation Charges: These charges during
the premium paying term are as under:
Policy Year
2 or 3
Thereafter
Charge
13%
4%
2%
Age
25
35
45
55
65
Female
1.023
1.162
2.385
6.441
15.92
Male
1.083
1.363
3.110
8.571
21.06
Policy Year
Surrender
Charge
7+
Eligibility:
made
in
the
preceeding years.
3. Tax Benefits:
Policyholder is eligible for tax benefits U/S 80C and
U/S 10(10D) of the Income Tax Act 1961.
Charges:
1. Premium Allocation Charges:
It is deducted from premium when received and
before allocation of units.
Policy
Charges
On Policy
Policy Years
1
8%
2
4%
3
4%
4+
Premium
On top-up
Premium
2%
2%
2%
2%
Policy Years
Charges
Policy
4+
Administration
19.4
19.4
19.4
14.4
Charge *
25
35
45
55
65
Female
1.023
1.162
2.385
6.441
15.92
Male
1.083
1.363
3.110
8.571
21.06
5. Surrender Charges:
These charges are applied when the policyholder
surrender their policy in the first 3 policy years. The
surrender charge as a percentage of the annual
policy premium chosen at issue is
Policy
Charges
Surrender
Charges
Policy Years
1
4+
15%
12.5%
10%
nil
Duration:
Assure
2.
Protector
3.
Builder
4.
Enhancer
5.
Creator
6.
Magnifier
Benefits:
1. Death Benefits:
Charges:
1. Mortality Charges: Charges are deducted monthly
by canceling units from the associated fund option.
The charge is 95%
2. Policy Administration Charges: These charges are
deducted monthly by canceling units from the
investment fund. The annual charge is Rs. 720 on
the first 1000 Sum Assured in all years i.e. Rs.3.60
per 1000 Sum Assured p.a. The additional charges
for years 1-5 are as follows:
Term
Band 1
Band 2
Band 3
10/15
4.75
4.25
4.00
20+
3.75
3.25
3.00
Unique
Guaranteed
Maturity
Unit
Price
Benefits:
1. Guaranteed Maturity Unit Price
2. Maturity Benefits
3. Surrender Benefits
4. Death Benefits
Higher of Fund Value (as per the then
prevailing unit price) or Sum Assured (less
applicable partial withdrawals)
5. Tax Benefits
U/S 80C- Premium up to Rs.100000 is
allowed as deduction from taxable income
each year.
U/S 10(10D) - Benefits from the plan are
exempted from tax.
Charges:
1. Premium Allocation Charges: 10% of
premium in the first year and 4% of
premium in subsequent years.
Administration
Charges:
These
Attained Age
25
35
45
55
65
Female
Male
FUNDS BY BSLI
Birla Sun Life Insurance, a leading Life Insurance
company, offers its clients with a long range of Funds.
These funds are designed to cater to a variety of needs of
people who are from different life stages. BSLI offers a
broad range of 12 funds, each having differing asset
allocations.
12 funds offered are:
1. Individual Protector
2. Individual Assure
3. Individual Balancer
4. Individual Builder
5. Individual Creator
6. Individual Enhancer
7. Individual Life Maximiser
8. Individual Magnifier
9. Individual Multiplier
10. Pension Nourish
11. Pension Enrich
12. Pension Growth
A new fund named Platinum Plus Fund I is also added in
this list of funds.
the
fund
requirements
of
the
policyholders.
Government Securities
Corporate Debt
Securitized Debt
Equity
Individual Assure
Objective: The primary objective of this fund is to provide
Capital Protection, at a high level of safety and liquidity
HOLDING
Corporate Debt
59.57%
17.97%
TOTAL
100.00%
HOLDING
59.57%
Money Market
Instruments
100.00%
TOTAL
17.97%
Individual Balancer
Corporate Debt
with
an
additional
exposure
to
equity,
HOLDINGS
Government Securities
10.67%
Corporate Debt
39.04%
Equity
23.44%
26.85%
TOTAL
100.00%
Pension Growth
HOLDINGS
Government Securities
13.90%
Corporate Debt
45.41%
Equity
18.63%
22.06%
100.00%
Pension Enrich
Objective: Helps to grow the capital through enhanced
returns over a medium to long-term period through
investments in equity and debt instruments, thereby
providing a good balance between risk and return.
Strategy: To earn capital appreciation by maintaining
diversified equity portfolio and seek to earn regular return
on fixed income portfolio by active management resulting
in wealth creation for policyholders.
Asset Allocation:
SECURITIES
HOLDINGS
Government Securities
14.35%
Corporate Debt
39.40%
Equity
32.69%
13.57%
TOTAL
100.00%
CONCLUSION
My training was a very enriching experience for me, I have
learnt so many things, and i got insight into the insurance
world. Insurance sector today playing a major role in
everyones life lot more than ever before life currently
there is a comprehensive range of products covering each
type of policy available in the market. I have studied
various insurance plans covered under BSLI, and their
features. BSLI also gives various Riders, which provides
extra benefits to the customers. And i came to know about
RECOMMENDATIONS
BIBLIOGRAPHY
ANNEXURE