A

PROJECT REPORT
ON
MARKET POTENTIAL
IN
“LIFE INSURANCE SERVICES”

Bachelor of Business Administration, [B.B.A.]

2009-1212

Submitted By Submitted To

VIKAS ( NEHA MATHUR)

B.B.A. IIIrd Year (Project head)

DEEPSHIKHA COLLEGE OF TECHNOLOGY EUCATION’JAIPUR

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 PREFACE

It’s a magic mantra for the marketer. It says the customer is best satisfied when it
least expects it. Today’s highly –competitive marketplace, when mere satisfaction
does not ensure loyalty, decrees this. To take potential defectors by surprise, you
have to behind customer expectation by anticipating its need and then surpassing
them with constantly superior products or service or delighting the customer. Nor
must be delight be a one-off offering, which can be bartered for a lifetime
purchase. You must be prepared for a lifetime purchase. You must be prepared to
it again and again, increasing the level of satisfaction at each encounter with the
customer. It was in the late eighties that corporation discovered the magic mantra:
customer loyalty. In the mid nineties the manta is being modified somewhat.
Instead of merely satisfaction, the enlightened companies have now started talking
about customer loyalty. The distinction is important increasingly research data is
showing that even customers who claim to be satisfied tend to desert a company
whenever its rival unleashes a new marketing program. And any marketing
exercising that merely aims at satisfying customers is unlikely to reap any term
benefits.

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 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Mr.Ankur gupta, branch officer of

(BIRLA SUN LIFE INSURANCE COMPANY LTD.), Muzaffarnagar for giving me an
opportunity to undergo this summer training in his esteemed organization.

I also extend my sincere thanks to the employees of BIRLA SUN LIFE

INSURANCE CO. LTD. Muzaffarnagar With out their support and guidance, this
project could not be completed. Though out the project work, they had been a
constant source of motivation to me.

Lastly I would like to thank all the facility members of marketing department of our
institute who guided me to fulfill my project.

VIKAS
BBA IIIrd YEAR

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 Executive Summary

Birla Sun Life Insurance pioneered the unique Unit Linked Life Insurance
Solutions in India. BSLI has cemented its position as a leading player in the
private life insurance industry within 4 years of its inception. Its main focus
on investment linked insurance products supported its leadership in product
innovation. Its multi-dimensional channels offered convenient channels for
sale of the products to customers. It had been maintaining corporate
governance and a high degree of transparency in all business practices and
procedures. It had a strong fundamentals based on Aditya Birla Group’s
local insight and sun life financials global expertise. The company chosen
was Birla Sun Life Insurance ( BSLI) . The reason behind this was to
understand the expertise it has developed and skills it has owned,
especially in the field of marketing its products as it is the booming
industries in India.
Learning really takes place outside the classroom. I stand a witness to this
Statement. The in sight of knowledge that I acquired in the two months of
internship with BSLI was quite impressive. The opportunity I received to
apply my knowledge and skills in the organization gave me a practical view
point to the whole system of learning.
The main objective of the internship was to imbibe a practical approach in
the students towards the knowledge gained at the classroom level. The
internship at BSLI has given me the right perception and has had a
positive effect on the kind of learning that I got at the M.P. Birla Institute of
Management, Bangalore. It was a very good experience for me to work
during this tenure. I am glad that I have learnt so much in such little time.
It has boosted my confidence and has raised my spirits. I can confidently
say that my knowledge has improved in a very short time I would like to

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thank the entire Marketing department at theB S L I for their constant
support.

CONTENTS

1. INDUSTRY PROFILE 6-15

2. INTRODUCTION OF THE ORGANIZATION 16-44

3. RESEARCH METHODOLOGY 45-54

TITLE OF THE STUDY

DURATION OF PROJECT

RESEARCH OBJECTIVE

RESEARCH

RESEARCH DESIGN

LIMITATIONS OF THE STUDY

4. FACTS AND FINDINGS 55-56

5. DATA ANALYSIS AND INTERPRETATION 57-61

6. SWOT ANALYSIS 62-65

7. CONCLUSION 66-67

8. RECOMMENDATION & SUGGESTION 68-69

9. ANNEXURE 70-72

10. BIBLIOGRAPHY 73-74

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1.0 INTRODUCTION:

1.1 BRIEF HISTORY OF UNIT- LINKED INSURANCE : The

“unit linked life insurance policy” as it is understood and practiced in the
west was introduced in our country only in 2000 when LIC brought in to the
market a policy called “BIMA PLUS”. As a data, expect two or three new
companies all the companies are selling the unit linked life insurance
policies. The term “unit” in our country is somehow identified only with the
‘units’ sold by UNIT TRUST OF INDIA. This product is also called “EQUITY
LINKED POLICY” or “MARKET LINKED POLICY” to indicate that the
returns under these plans are linked to the market returns of the equities or
shares.

The credit of introducing the first unit linked plan goes to UTI when they
brought out the Unit linked life insurance (ULIP) in 1971,In 1989 LIC Mutual
Fund introduced the ‘DhanRaksha’ Plan identified to the ULIP. The term of
the policy in either 10 or 15 years. With the effect from 1-7-02 the target
amount under these two schemes has been introduced to Rs. 2 lakhs from
Rs.75, 000.it works like this: from the uniform contribution for each year (for
example @Rs.20,000 for ten years) a small portion is used to buy term
death cover for Rs.2 lakhs and the balance is invested in units and at the
end of ten years the accumulations made in your account is given as the
maturity benefit along with a 5 or7.5% bonus. There is some restriction in
full death cover in the first two years. After two years the full death benefit
will be paid equal to the target amount. a free accident cover is also given
for Rs.50,000. From April 2000 this plan is made NAV driven and UTI has
made several beneficial changes. In fact, these plans are considered to be

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the cheapest insurance with good returns! As life insurance people are not
making these plans, they are not very popular in large numbers.

The concept involved in these unit or equity –linked policies is that as the
major part of your premium amounts paid over a period of years is invested
in equities and other capital market instruments year after year, the return
when it comes will not be affected very much by inflation as it happens in a
maturity value of the policy in any average life insurance policy for the same
period. Of course, the insulation against inflation is the insulation against
inflation is subject to the usual investment risks and the investments
performing reasonably well.

The idea of linking insurance benefits to the performance of units was first
tried for annuities. The annuity benefit was for a fixed number of units, the
value of which depended upon the market value of a portfolio of equity
assets. The teachers insurance and annuity association in USA first
introduced this method in 1952 to pay the annuities in collaboration with the
college retirement equity fund. The insurance companies could not follow
this method to extend the benefit to the general public due to legal
obstacles and funding problems till 1964. In 1959 the US supreme court
ruled that such insures will be subject to the regulation of securities and
exchange commission (SEC) only in 1964 the SEC permitted insurance
companies to introduce such annuities.

Each groundwork for successfully operating unit-linked life insurance

policies was first made in Holland, Netherlands, Canada and UK.

However, life insurance contracts linking to the performance of units came

only in 1976 in USA. The SEC ruled that life insurance contracts with an
equity base would be subject to the securities act of 1933-34 and

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investment company act 1940. The agents selling such policies were also to
take special licenses.

While it is called “Unit- linked life insurance policy” inUK it is called “Variable
insurance contracts” in USA. It is rightly called “variable” because both the
premiums and the benefits under the policy are ‘variable’ according to eh
choice of the policyholder. What is paid under the policies is the returns on
the performance of the chosen equities and not a fixed sum as in an
ordinary policies. The majority of them are whole life plans.

Basically, in USA, it offers the life insurance coverage combined with a tax-
differed investment feature. Your premium payment are spent on three
things:

1) The cost of the life insurance;

2) Various insurance company fees-including sales charges which are
deducted from each premium payment and
3) Your tax –deferred investment account, whatever amount is left after the
first two goes into the third. And the amount is probably a lot less than you
would hope. There are stringent regulations on selling these policies in
other countries.

For example, in USA, since the variable life insurance products switches the
investment risk from the insurance company to the policy owner, these
types of policies are considered both insurance contracts and securities and
are regulated by both the securities &exchange commission and the state
insurance commissioner. An agent authorized to sell variable life insurance
must be licensed by the state as well as by the National Association of
Securities Dealers (NASD) to work as a registered representative.

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 As a security, variable insurance products are regulated by the securities
&exchange commission, which brings out a new set of agent requirements
dealing, primarily with full and fair disclosure laws. For example, any sales
presentation or illustration must be preceded by or accompanied by a
prospectus approved by the SEC. all materials used in selling and the SEC
must also approve promoting these product prior to use.

In our country, however, only the IRDA regulates this policy and the
investment of the premiums collected under the policies. Also it is enough if
the selling agent has passed the basic IRDA insurance license examination.
No special qualifications are need by the agent and SEBI does not have any
control over the designing of or illustration prepared by the insurance
companies in selling such policies.

BRIEF HISTORY OF BIRLA SUN LIFE INSURANCE COMPANY

LTD.:

A joint venture between the Aditya Birla Group and Sun life Financial, Birla
sun life insurance forayed into the life insurance and retirement planning
business by pioneering the unique unit-linked solutions in India. In just over
2 years of its launch, the company has catapulted to second position in new
business premium in the highly competitive private life insurance industry
based on its strategy of unit-linked plans.

1.2.1 THE ADITYA BIRLA GROUP: “Aditya Birla”, a name that evokes all
that is positive in business and life. It typifies integrity, quality, performance,
innovation, perfection and above all, character.

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In operation for over 50 years now, the Aditya Birla Group is one of India’s
largest business houses. A highly respected and admired group, rooted in
performance ethics based on value creation for its multiple stakeholders.
The Aditya Birla Group’s operations span over 40 units across 18 countries,
anchored by a 72,000 strong committed workforce, a group turnover
exceeding Rs.27, 000 crore, an asset base which exceeds Rs.20, 000 crore
and a market capitalization of over Rs.13, 000 crore spread over 7 lac
shareholders. Known for its rack solid fundamentals it nurtures a culture
where success does not come in the way of the need to keep learning
afresh to continue innovating and to carry on experimenting.

Being one of the largest corporate houses in India, and Aditya Birla Group
enjoys a dominant position in all the sectors in which it operates. It is the
world’s largest producer of viscose staple fibre, largest single location
aluminum plant and the largest single location refiner of palm oil. What’s
more, it is the second largest producer of insulators and the fifth largest
producer of carbon black in the world.

In India, the group is the single largest producer of viscose filament yarn,
aluminum, white cement and the third largest in grey cement. Not to
mention, the recognition of being the market leader in the ready to wear
branded apparel segment with brands like Allen solly, Louis Phillip, van
heusen and peter England.

The flagship companies of the Aditya Birla Group include some of the
largest and most respected companies in India such as grasim industries
limited, Hindalco industries limited, Indian Aluminum Company limited,
Indian Rayan Industries Limited, Indo Gulf Corporation Limited. The Group
has larged power relationship with large corporations like Hindustan
Petroleum, Tata, Powergen Plc and AT&T.

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 The group fosters a culture that promotes excellence and rewards
entrepreneurship. It endeavors to make the workplace a source of creativity,
innovation and self-fulfillment for its employees. Nurturing a corporate
culture imbedded with a high level of commitment and a sense of shared
destiny.
The mission of the Aditya Birla Group is creation of value for its customers,
shareholders, employees and the society at large.

1.2.2. SUN LIFE FINANCIAL: Sun life financial is a leading international

financial services organization. With a history that dates back to 1871, Sun
life financial has evolved from a single mutual life insurance to one of the
most highly rated insurance and wealth management institution in the world.
Sun life financial knows its value lies in more than assets and history. It also
lies in the culture of the integrity and the pursuit of excellence that have
marked all of the organization endeavors. Today the sun life financial group
of comp anise and the partners are represented globally in Canada, the
United States, the Philippines, Japan, Indonesia, India and Bermuda.

In March of 2000, Sun life financial services of Canada, inc, Sun life
financier’s parent company, listed its shares on stock markets in Toronto,
New York, London, and Philippines. This new access to shareholders equity
provides Sun life financial with even greater opportunities to grow around
the world.

The Sun life financial group of companies around the world, offer innovative
and practical financial solutions to individuals and corporations:
 Life, Health and Disability
 Pension Funds and Plans
 Investment Management
 Annuities and Savings
 Trust, Brokerage and Banking

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 Sun life assurance Company of Canada, sun life financier’s primary
insurance business, has excellent ratings with the world’s top ratings
agencies. With assets under management as on September 30, 2000
totaling more than CDN$345 billion, it ranks amongst the largest
international financial services organizations in the world. Sun life financial
enjoys independent rating that place us at the top of the financial sector in
North America.

1.2.3 VISION: To be a world-class of financial security to individuals and

corporate and to be amongst the top three private sector life insurance
companies in India.

1.2.4 MISSION: To be the first preference of our customers by providing

innovative need based life insurance and retirement solutions to individual
as well as corporate. Well –trained professionals through a multi channel
distribution network and superior technology will make these solutions
available.

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.

1.2.5. OUR VALUES:

 INTEGRITY
 TRANSPERENCY
 CUSTOMER FOCUS
 EXCELLENCE
 INNOVATION

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 MERITOCRACY
 RESPECT FOR THE INDIVIDUAL

OUR FEATURES: Our unit-linked flexi products are based on universal life
platform, catering to the customer’s twin needs of insurance and investment. Our
customers have appreciated these products, which have the beneficial features of
life insurance, mutual funds and banks. Some of these features are described
below:

1. PROSPECTS FOR GROWTH WITH UNDERLYING GURANTEES:

According to their risk appetite, the customers can choose out of three
investment options, viz, protector (Representing a low risk portfolio), Builder
(Medium risk portfolio) or Enhancer (High risk portfolio) with guaranteed
returns fund, at present ranging from 3%-6%. The flexibility of changing the
investment option initially availed by them is also available.

2. GUARANTEES PROVIDE SAFETY NET: The policyholders enjoy the

upside returns provided by the portfolios in all the investment options. As on
31st December 2002, the annualized returns since inception under protector,
builder and enhancer options were 9.75%, 11.12% and 14.74% respectively,
which is above the minimum level guaranteed.

3. CONVENIENCE IN PAYMENT OF PREMIUMS: The customer has the

option of paying any amount of premium, any number of times (within a
policy year) irrespective of the mode. Traditional products available in the
market do not offer such a facility.

4. BUILT-IN GUARD AGAINST UNITENDED LAPSATION: These products

provide continuity of risk coverage for a long time even if the premiums

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 remain unpaid. The continuity of risk is ensured with the help of monthly
recovery of cost of insurance and automatic premium advance facility. A
policy can lapse if and only if the policy fund pertaining to the individual
policy becomes negative.

5. RISK COVER DOES NOT DECRESE DURING THE TERM OF THE

POLICY: Unlike traditional life insurance policies, where the sum at risk
(Sum assured –paid up value) actually goes on decreasing, in our flexi
policies, death benefit is sacrosanct and and remains uniform throughout
the tenure of the policy. In case of death, the face amount as well as the
policy fund representing the saving portion in the premium is payable.

6. ACCELERATED PAYMENT OF PREMIUM POSSIBLE: Depending on

one’s financial situation a shorter premium-paying period can be selected,
with the advantage of greater accumulation resulting into higher
death/surrender/withdrawals/ maturity benefits.

7. LIQUIDITY ON TAP: Traditionally, insurance products have been know to

be illiquid. Policy loans are at a cost and surrenders defeat the very purpose
of insurance. In such an environment, the facility of withdrawals without
affecting the risk cover is one of our unique features.

8. NO PENALTY FOR SURRENDER: Unlike in traditional type of life

insurance policies where the policy holders have to suffer a financial loss on
surrender of their policies, our products do not provide any surrender
charge after the first four years.

9. CUSTOMERS CAN SEE THEIR MONEY PERFORM: Our policyholders

are provided with an access code to know the policy values online. Besides,
the investment performance of the various options is published every

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 quarter and the policyholders receive a yearly statement reflecting the
status of the policy fund.

10. OTHER BENEFITS:

a. Lower premium for female customers
b. ‘Age last birthday’ gives the customers advantage of lower age
c. A policy can be customized to the policyholder’s requirements. For instance
our ‘Flexi life line’ with the facility of limited premium payments and withdrawals
thereafter, becomes a veritable pension plan with attendant tax benefits.
d. Detailed illustration at the point of sale

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1.3 ORGANISATION STRUCTURE: two guides Biral sun life insurance business
operations if its core values, namely integrity and transparency. BSLI complies with
a all regulations governing the life insurance business. A high degree of
transparency is followed in al the business practiced and procedures and all
employees are governed by an internal code of conduct.

BSLI abides by the corporate governance framework in accordance with the

Kumar Managalam Birla committee as applicable to the life insurance business,
as well as the provisions of the insurance act, 1938, the companies act, 1956
and the IRDA regulations.

The various committees overseeing the business are:

BOARD OF DIRECTORS
 Mr. Donald Stewart- chairman
 Mr. Kumar Mangalam Birla
 Mr. Gary M. Come ford
 Mr. Douglas C. Hence
 Mr. S.K. Mitra
 Mr. B.N.Purankmalka
 Hish Highless Maharaja G.Singh
 Mr. S.N. Talwar
 Mr. G.P. Gupta

AUDIT COMMITEE

 Mr. B.N. Puranmalka

 Mr. S.K. Mitra
 Mr. D.C. Henck
 Mr. G.M. Cmerford

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INVESTMENT COMMITEE

 Mr. S.k. mitra

 Mr. B.N. Puranmalka
 Mr. P.J. Akers
 Mrs.K.Gupta
 Mr. A. Fenn
 Mr. N.B. Javeri
 Mr. S.Shah

EXECUTIVE COMMITTEE

 Mr. G.M. Comeford

 Mr. D.C. Heck
 Mr. S.K.Mitra
 Mr. B.N. Puranmalka

Apart from the above committees overseeing the business operation, the CEO
and CGO certify the audited accounts of the company and company secretary
submits a compliance certificate.

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 THE BSLI MANAGEMENT TEAM

Mr. Nani Javeri

(CEO)

Mr. Peter Akers

(CFO and appointed actuary)

Mr.
E.N.Goveia Mr. P.Nandagopal
(Senior vice president –direct sales force) (Senior vice president-alternative
Channel and group life)
Anjana Grewal Jaskirat Kaur Snehal Shah K.S.Gopalkirshnan
(marketing &comm.) (group life &personal) (control & admin.) (actuary)

Mr. K.H. Venkatachalam (chief manager-human resource)

Mr. Mayank Braganaza (chief manager- finance and planning) Mr.

Sanjay Parikh (chief manager- product development)

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1.4 BRIEF PROFILE OF SEVICES OF ORGANISATION:

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 Pioneered by Birla sun life insurance, Unit- linked solutions bring together
the best of life insurance and investment, together. A unique combination of
security from life insurance and returns from investment. Introduced in line
with the latest global trends, the unit- linked plans put you in total control of
your money. They are simple transparent and flexible. What’s more, they
offer 3% minimum guaranteed overall returns on the premium.
Birla sun life insurance provides individual as well as group life insurance
solutions aimed at the corporate sector.

1.4.1 INDIVIDUAL LIFE PLANS: Birla sun life insurance offers number of
individual life plans, which can be given below-

1.4.1. FLEXI SECURELIFE RETIREMENT PLAN: This is a unit-linked retirement

plan to give you efficient returns in the long term so as to build a sufficiently
large corpus of savings on retirement. The planes built in tow phases: the
accumulation phases and annuity phase. During the accumulation phase
the plan gives you a choice of three investment options to invest your
money with an option to switch between these funds to match your risk
appetite. What’s more it offers a guaranteed minimum return of 3% on your
premium (deposit) amount net of all charges and deductions in this phase.
In the annuity phase the plan gives 2 options to choose from.

1.4.1.FLEXI LIFE LINE PLAN: This plan offers a life insurance cover till the age of
100 years thus providing you with a lifetime of security. It is an investment
for your future in which you accumulate large savings through the benefits
of compounding. The plan gives you the flexibility of making tax-free
withdrawals and can be customized as tax efficient pension during your
working years while the plan continues for a lifetime.

1.4.1 FLEXI SAVE PLUS ENDOWMENT P LAN: It is a flexible life insurance plan,
which offers the dual benefit of a life insurance cover as well as large tax-

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 free savings in the long term. The plan is taken for a specified period and
the benefits are payable in the events of death during the tenure of the plan
or at maturity. The unit-linked nature of the plan coupled with the benefits of
compounding can lead to very efficient returns in the long term.

1.4.1 FLEXI CAH FLOW MONEY BACK PLAN: It is a flexible life insurance plan,
which offers a life insurance cover and gives lump sum payment at periodic
intervals. These periodic payments intervals. These periodic payments help
you meet your various financial obligations at crucial junctures such as
education or marriage of your child. The unit-linked plan also offers you the
option of not withdrawing the lump sum amounts and continuing it in the
plan to take advantage of the benefits of compounding.

1.4.1 BIRLA SUN LIFE TERM PLAN: The plan offers large life insurance cover
for very low costs for a specified term. It is a low premium, pure risk
coverage plan, which takes care of one’s financial commitments toward
his/her depending should anything unfortunate happen to line policyholder.

1.4.1 BIRLA SUN LIFE PREMIUM BACK TERM PLAN: The plan offers you a life
insurance cover for a specified term. Unlike other term plans this plan
refunds the entire amount of premium that you pay over a period of time.
There are two options of maturity benefits to choose from and what is m ore
it is a low cost life insurance plan.

1.4.2 GROUP PLANS: Birla sun life insurance Company offers number of group
plans, which can be, described below-

1.4.2 GROUP GRATUITY SOLUTIONS: It works for your future group gratuity
addresses the need of prudent financial management for a progressive

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 corporate house. The unique benefit being it provides market-linked returns
that present an opportunity for capital appreciation in the long term. Besides
when the fund yields better returns, it decreases the contribution to the fund
in the years.

1.4.3 GROUP SUPERANNUATION PLAN: Retire in comfort- Birla sun life

insurance offers group superannuating plan as a retirement solution for
employees. The plan has benefits that empower both the employer and
employee. The contribution is invested in unit-linked funds yielding market-
linked returns to meet your future needs efficiently. Additionally original /
principal contribution is guaranteed against market fluctuation.

1.4.4 GROUP PROTECTION PLAN: Birla sun life insurance provides group
protection plan for a homogenous group. Under this plan, life insurance
cover is provided at an affordable cost. Renewed every year, it helps fulfill
the insurance needs of employees as well as provide financial security to
their families. In the event of death of the member, the beneficiary (family) of
the member gets the benefit. The plan has 6 additional riders and two
options.

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 PLANS AT A GLANCE

FLEXI SAVE PLUS FLEXI CASH FLOW FLEXI LIFE LINE

ENDOWMENT PLAN MONEY BACK PLAN PLAN
ELIGIBILITY 30days –65 years 30days –65 years 30days –65 years

MINIUM FACE Rs.50, 000 for minors Rs.50, 000 for minors Rs.50, 000 for
AMOUNT and Rs75, 000 for and Rs75, 000 for adults minors and Rs75,
adults 000 for adults
DURATION OF THE As per policy term-5, As per policy term-5, As per policy
PLAN 10,15,20,25,or 30 10,15,20,25,or 30 years term-5,
years or as per or as per maturity age- 10,15,20,25,or 30
maturity age-15, 15, 20,25,30,35 years years or as per
20,25,30,35 years for for minors and maturity age-15,
minors and 60,65,70,80 years for 20,25,30,35 years
60,65,70,80 years for adults for minors and
adults 60,65,70,80 years
for adults
PREMIUM PAYING Single pay 5,10,15,20 Single pay 5,10,15,20 Single pay
PERIOD years or over the years or over the 5,10,15,20 years
duration of the plan duration of the plan or over the
duration of the
plan
MATURITY BENEFITS Policy fund Policy fund Policy fund
AMOUNT DUE TO Face amount+policy Face amount+policy Face
NOMINEE IN EVENT fund fund amount+policy
OF DEATH OF THE fund
LIFE INSURED
FREELOOK PERIOD 15 days from the date 15 days from the date 15 days from the
on which you receive on which you receive date on which
the policy document the policy document you receive the
policy document
TAX BENEFITS** Under sec 88 and sec Under sec 88 and sec Under sec 88 and
10(10D) of the income 10(10D) of the income sec 10(10D) of
tax act 1961 tax act 1961 the income tax
act 1961
RIDERS  Accidental death  Accidental death and  Accidental
and dismemberment death and
dismemberment benefit dismembermen
benefit rider Rider t benefit rider
 Term rider  Term rider  Term rider
 Critical illness rider  Critical illness rider  Critical illness

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  Critical illness plus  Critical illness plus rider
rider Rider  Critical illness
 Waiver of premium  Waiver of premium plus
rider rider Rider
 Waiver of
premium
Rider

UNIQUE FEATURES  Minimum guaranteed returns of 3% p.a. on your premium net

of all policy fees of all policy fees and charges. The entire upside in
the performance of the fund is passed on to you.
 Three investment fund options: protector, builder and enhancer
with option to switch between funds any time after the first policy
year.
 Options to make tax-free withdrawals you have additional
savings.
 Vary the face amount of policy depending on your changing
needs for life insurance during your lifetime.
 Surrender your policy without penalty anytime after 4 policy
years.

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1.5 AREAS OF EXCELLENCE: Drawing from the strength of the joint venture
partners. The aditya Birla group and sun life financial inc. the team of Birla
sun life insurance has crossed several milestones of excellence.
 Leadership in unit-linked plans- 95% of sales come through unit-linked
plans. The company is one of the largest sellers of unit-linked plans in
one of the fastest growing life insurance markets in the world.
 The company is a p pioneer in introducing unique product features like a
‘free look period’ and best sales practices such as the use of “sales
illustrations”. The regulator has now introduced the ‘free look period’ as
an industry norm. The mandatory use of a sales illustration within BSLI
set up a standard of transparency in the industry.
 A high persistency ratio of 95.46% by premium.
 BSLI has consistently recorded the highest average sum assured of
Rs.3, 26,000 and average premium of Rs.19,500 per policy in the
industry with a unit-linked product range.
 A very efficient utilization of capital.
 Low claims ratio of 0.06% of total policies.
 The first advisor to qualify to the “top of the table” (TOT) amongst all
private life insurance companies.

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1.6 GROWTH OF BIRALA SUN LIFE IN UNIT-LINKED LIFE INSURANCE:
Another successful financial year came to an end. The company reported an
annualized new business income of Rs.478 crore during the year 2003-04 an
increase of 222% over the premium income lat year. The company of the
year-end had an agency force of around 10,250 agents, and 89 ban
assurance & corporate partners. All three sales channels came out with flying
colors. During the year 2003-04 the company has launched two new groups
and one individual fund.

During the year 2003-04, the BSE sensex has gone up by 81% but the first
quarter of year 2004 was not very exciting for the market except for a huge
supply of PSU IPOs. In March 2004, the markets have been choppy and
combined with the upcoming elections. This has caused some amount of
investor uncertainty. After a continuous rise between may 2003 and January
2004, the quarter saw a correction in the market. The BSE sensex went up to
an all time high in January 2004 and the quarter closed at 5590.60 down
almost 4% from December 2003 level. There was a large supply of IPOs by
PSUs, which met with a good response. The fundamentals remained good
and foreign institutional investors (FIIS) continued buying even though the
markets declined. The GDP growth numbers has also been encouraging at
10.4% in October – December 2003 quarter.

The interest rates remained range bound in the quarter with some amount of
volatility. The 10- year benchmark G-sec closed at 5.15% at the end of the
quarter.

The rupee strengthened further to close the quarter at 43.60/ US $ against

Rs.45.61 at the end of December quarter and Rs.47.50 a year ago. Forex
reserves have crossed $ 110 bn in March 2004 on the back of strong growth
in FDI and FII inflows.

27
 We will continue to invest in diversified and quality portfolio with a long-term
view.

Returns on unit-linked individual life funds.

(Based on unit price growth, net of charges) as on 31 st march 2004

PARTICULARS RETURN ON ANNUALISED LAST I YEAR

INVESTMENT RETURN (%)
(SINCE INCEPTION) % (SINCE INCEPTION)
%
PROCTER 39.20 12.95 20.62
BUILDER 51.11 16.88 28.33
ENHANCER 70.98 23.45 38.56

28
 Returns on unit –linked pension funds:

PARTICULARS RETURN ON ANNUALISED LAST I YEAR

INVESTMENT RETURN (%)
(SINCE INCEPTION)% (SINCE INCEPTION)%
NOURISH 13.94 13.21 13.30
GROWTH 15.54 14.97 14.90
ENCRICH 18.78 17.80 18.10

29
30
1.7 PROBLEMS IN ORGANISATION:

Problems in the organization, which are assigned by officer, are not so big
problem. It is clear that BIRLA SUN LIFE INSURANCE COMPANY is a unit-
linked insurance, which are basically involved in the life insurance solutions.
There are number of problem which are as follows-
1) The main problem of the organization is that the it is not government
organization like a life insurance solutions.
2) The second main problem is that lack of believes on the organization
by the people.
3) The third problem assigned by the organization that there are the few
branches of the BRILA SUN LIFE INSURANCE SOLUTION.
4) Another problem is that the lack of good quality, good skill insurance
advisors.

31
32
2.0 DISTRIBUTION NETWORK

BIRLA SUN LIFE INSURANCE COMPANY LTD, distribution strategy is aimed

at creating a national presence through a scaleable model, which would
achieve convenience, accessibility and quality service for the customers.

2.1 DIRECT SALES FORCE: Through this channel, the company sets up brick
and mortar branches on a standardizes template, across the country selling
life insurance though trained career agents called ‘insurance advisor’. The
team of agency managers and advisors are geared for productivity
enhancement national presence in 44branches and 9development centers.

2.2 LTERNATE CHANNELS: The experience in various countries for selling life
insurance through banks, corporate agents, brokers, call center, Internet and
these distribution alternatives will be pursed by the organization from the
inception stage. While in India there was no precedent for selling life
insurance though these alternate modes, a philosophy of piloting and
stabilizing the model was adopted.

The successful business models for banassurance, corporate agency,

brokerage, affinity group and direct marketing are being consolidated. use of
the call center and the internet will continue to be part of the direct marketing
initiatives .with a winning multi-channel distribution system in place ,BSLI
alternate channels are frontrunners in bancassurance business, in
partnership with Citibank ,Deutsche bank,Bankof
Rajasthan,BankMuscat,Catholic Syrian Bank, Development credit bank and
IDBI Bank.

33
2.3 OUP INSURANCE: The selling of insurance to corporate and affinity groups
is developed though dedicated relationship managers. The business focus is
on the Aditya birla group companies and the top corporate in India.

Through this channel, the company has established relationships with more
than 100 blue chips corporate across the country by providing group
protection and group retirement solution. The company has achieved
leadership position in-group business in private life insurance position in
providing fund management services for the group retirement plans.

2.4 DISTRIBUTION IN TUNE WITH TECHNOLOGY: Technology plays the crucial

role, when distribution spans across more than 50 locations .the IT strategy
revolves around selecting and implementing critical business applications to
support contemporary products like universal life and aligning process to
provide world-class customer services. The systems are web enabled and
equipped to provide consistent information across all touch points (branches,
callcenters website etc.). A high quality wide area network (WAN) was set up
to interconnect all branches and the headquarters at mumbai.

2.5 TRANNING TO SUPPORT DISTRIBUTION: In keeping with support

throughout the country. Birla sun life insurance’s mission of providing life
insurance solutions though “well trained” professionals, our tanning team has
geared up to meet the challenge. We have a team of qualified professionals
to provide the crucial support throughout the country.

34
35
6.1 KEEP TRACK OF YOUR POLICY FUND: Birla sun life insurance sends
you an annual policy statement on every policy anniversary to keep you
completely informed on the performance of our various funds based on the
unit price will be available on our website.

6.2 ELECTRONIC CLEARING SERVICE (ECS): The ECS is a convenient and

hassle- free method of paying premiums through an electronic debit to your
bank account.

INVESTMENT FUND PORTFOLIO:

UPPER LIMIT OF PROTECTOR BUILDER ENHANCER

%ASSETS IN:
Government and 85% 70% 55%
government approved
securities
Rated corporate bonds 30% 30% 30%
(AA and above)
Money market and other 20% 20% 20%
liquid assets

Infrastructure sectors as 25% 25% 25%

defined by the IRDA

Listed equities 10% 20% 35%

36
 6.3 FEES AND CHARGES: The policy loading fee* is an up-front charge and
varies as per the premium payment mode and the policy year as given
under:

PAY PERIOD
POLICY SINGLE 5-PAY 10-PAY 15-PAY OR
YEAR GREATER
1 3% 29.9% 54.6% 65%
2 N/A 5.0% 7.5% 7.5%
3 N/A 5.0% 7.5% 7.5%
4+ N/A 5.0% 5.0% 5.0%

As a percentage of premium. The policy-loading fee for top up wills 2.0

percent.

6.5 CHARGES:

6.5.1. Charges towards the cost of insurance will be deducted

by cancellation of units at the prevailing unit price on a monthly basis. The
annual insurance charges per thousand-face amount for sample ages for
healthy lives are as follows:

Sex/age (yrs) 20 30 40 50 60

Female 0.90 1.16 1.66 4.03 10.66

Male 1.02 1.17 2.15 5.53 13.73

37
 6.5.2. An investment management free not exceeding 1.5%
p.a. of the fund will be charged by adjustment of daily unit prices. Currently
this fee is 1% p.a.

6.5.3 The following administration fees will be deducted by canceling units on a

monthly basis.
(a) Rs. 22 per month
(b) An annual charge of Rs. 2.88 per thousand face amount will be deducted
in the first 10 years of the policy expect in the second year where it will be
Rs. 15.24 per thousand face amount. From the 11 th year onwards this
annual charge will increase subject to a maximum of 3.75%per year.

6.5.4 A monthly rider deduction will apply by cancellation of units on a monthly

basis based on the equivalent monthly rider premium payable over the
entire coverage benefit period. If rider deductions are not guaranteed,
then the minimum policy values of your policy might be affected due to
any change in the rates of the rider coverage.

6.6 FUND SWITICHING CHARGES:

6.6.1 In a year, one switch between investment fund options
is free.
6.6.2 For every additional switch, a charge of Rs.100 will be
levied.

6.7 SURRENDER CHARGES: The surrender charges is levied in the first four
years and varies based on the year in which the policy is surrender.
During the first 24 months of the policy, the charge will be an amount
equal to the annulled premium payable for this policy .for the purpose of
surrender charge only, annualilsed premium is defined as the amount that
is payable if the coverage paying period is equal to the coverage benefit
period. In the 25th month, the surrender charge is 24 percent of the

38
 annualized premium. The surrender charge percent reduces by one for e
very month thereafter. If the policy is surrendered at any time after the 49 th
month, the surrender charge is zero.

6.8 WITHDRAWAL CHARGES:

 In a year tow withdrawals are free of charge
 For every additional withdrawal, a charge of Rs.100 will be levied.

AN ILLUSTRATION, WHICH IS SHOWING THE PRICING POLICY OF THE

COMPANY:

THIS PRESENTATION IS PREPARED FOR: Mrs.Nisha Singh

Name of life insured: Mrs.Nisha Singh

Date of birth 01/07/1964/ female

Coverage type Face amount coverage annual

(Rs.) benefit coverage
Period premium
( Years) (Rs.)
Flexi save plus (age) 90,000 30 4,563.60
Accidental Death &
Dismemberment rider 90,000 25 151.20

Policy premium 4,714.80

Due and payable Quarterly

39
The premium and associated benefits are described in the product brochures and
the following illustration. The details provided in the following illustration would
enable you to see how your p premium is being used. If you need help to interpret
please contact your insurance advisor or call Birla sun life insurance Company’s
toll free number, which is 1600227000.

Some benefits are guaranteed and some benefits are variable with returns based
on the future performance of your insure carrying on life insurance business. If
your policy offers variable returns then the policy fund values table will show two
different rates of assumed future investment returns. These rates return are not
guaranteed and they are not upper or lower limits of what you might get back, as
the value of your policy is dependent on a number of factors including future
investment performance. The guaranteed amounts are the minimum amount that
you can expect if all the conditions mentioned later are fulfilled.

This illustration ignores the impact of the provisions of the income tax act, 1961.
The provisions of section 88 of the income tax act, 1961 govern a tax rebate for
premiums paid towards an insurance policy. The tax exemption for the benefits
paid under a life insurance policy is governed be section 10(10D) of the I income
tax act, 1961. Both these sections may be applicable to this policy .you may
consult a qualified tax advisor for specific tax advice related to you. If required by
the act, we will withhold taxes from the benefits payable under this policy. We also
reserve to you. If required by the act, we will withhold taxes from the benefits
payable under this policy. We also reserve the right to recover from you levies such
as service tax levied by the authorities on insurance transactions.

Please note that in the following pages that illustrate the policy fund values:

The premium and all values shown are for the life insurance coverage and do not
include riders. The rider benefit amount will be payable, wherever applicable in

40
case of happening of the events as mentioned in the rider brochure in
consideration of the payment of additional premium/charges.

Policy fund values shown as at the end of the year and assume:
(1) Premiums are paid in full when due,
(2) No withdrawals are made,
(3) No outstanding policy loans exit,
(4) The investment fund options is not changed throughout the lifetime of the
policy,
(5) Increase in premiums or charges for riders having non-guaranteed premiums or
charges are not recovered from the policy fund,
(6) No change is made in the face amount of the life insurance coverage and
(7) Policy fees and charges are at current levels as explained in the section “policy
fees and charges”. The premium mentioned in this illustration does not include top-
up premium or any underwriting extras.

Upon surrender or maturity of the policy, the amount payable to the policy
owner is the sum of:
(1) Guaranteed policy fund surrender /maturity value, and
(2) Non-guaranteed policy fund
Less any amounts owed to the company.
The sum of 1 and 2 above constitutes the policy fund.

With drawls can be made from the holding account, which comprised the
non-guaranteed policy fund.

Upon the death of the life insured, the death benefit is sum of
(1) Life insurance coverage face amount, and
(2) Policy fund
Less any amounts owed to the company

41
 Provided that where the death of the life insured takes place before the
commencement of the policy anniversary, on or immediately following the
age when the life insured reaches one year, only the policy fund shall be
payable.

The non-guaranteed policy fund may or may not arise depending on the
performance of the investment fund supporting the policy .an investment
by you in any of the investment funds I s subject to market and other risks,
the value of the investment fund can go up or down depending on the
factors and forces affecting financial markets. Other than explicit
guarantees provided by the company, there can be no assurance that the
objectives of any investment fund will be achieved.

FEES AND CHARGES: The policy loading fee* is an up-front charge and
varies as per the premium payment mode and the policy year as given
under:

PAY PERIOD
POLICY SINGLE 5-PAY 10- 15-PAY OR
YEAR PAY GREATER
1 3% 29.9% 54.6% 65%
2 N/A 5.0% 7.5% 7.5%
3 N/A 5.0% 7.5% 7.5%
4+ N/A 5.0% 5.0% 5.0%

In addition to the above policy-loading fee, the following policy fees

and charges will be recovered from the policy fund.

1) The cost of insurance of the life insurance coverage will be deducted by

cancellation of units at the prevailing unit price on a monthly basis. The
annual insurance charges per thousand of the life insurance coverage
face amount for sample ages for healthy lives are as follows:

42
 Sex/ag 20 30 40 50 60
e (yrs)
Female 0.9 1.1 1.6 4.0 10.66
0 6 6 3
Male 1.0 1.1 2.1 5.5 13.73
2) An investment management fee not exceeding 1.5 percent per annum of
the investment fund will be charged by adjustment of the daily unit prices.
Currently this fee is 1 percent per annum.

3) Policy administration fees for the life insurance coverage will be

reeducated by canceling units on a monthly basis, as follows:

a) Rs. 22 per month; and

b) Annual charge of Rs. 2.88 per thousand of the life insurance coverage face
amount will be deducted in the first 10 years of the policy expect in the
second policy year when it will be Rs. 15.24 per thousand of the life
insurance coverage face amount. From the 11 th year onwards this annual
charge (Rs. 2.88 per thousand of the life insurance coverage face amount)
increases at an annualized rate of a maximum of 3.75%, every year.

4) The surrender charges to be levied vary based on the duration of the

policy. During the first 24 months of the policy, the charges will be an
amount equal to the annaslised premium payable for this p policy. For the
purpose of surrender charges only, annualized premium is defined, as the
amount that is payable if the coverage playing period is equal to the
coverage benefit period. In the 25 th month, the surrender charge is 24
percent of the annuallised premium. The surrender charge percent
reduces by one for every month thereafter. If the policy is surrendered at
any time after the 49th, the surrender charge is zero
.
The premium net of all charges and fees will earn a minimum life
insurance net return of 3 percent per annum, which constitutes the

43
guaranteed fund. Any returns earned by the policy fund in excess of the
guarantied fund constitute non-guaranteed fund.
For a detailed description of the features of the product, please refer to the
product broacher.
Acronyms used:
TPD- Total And Permanent Disability,
TPD/CI- Total And permanent Disability or Critical illness,
Death/TPD –Death or And Permanent Disability,
Death/TPD/CI- Death or Total Permanent Disability or Critical illness.

44
TITLE OF THE STUDY-:
LIFE INSURANCE SERVICES

45
 DURATION OF THE PROJECT
Duration is from 1st June to 15th July 2010.

OBJECTIVE OF THE STUDY:

The main objective of this study is found out the view of different people
about the unit-linked life insurance. And find out what they take insurance
advisors advise for their investment or not. If not indicate the people for
their life insurance and tells them why life insurance is necessary for every
persons. There are some reason which indicates why life insurance is
necessary for every person given below-

MARKETING OBJECTIVE:
The main marketing objective of this project report for the company is find
out marketing position of the life insurance and makes the present and
future market strategy of the company.

RESEARCH OBJECTIVE:

1. Identifying the sources of money or funds a p person has and what

happens to that money (where is goes) than
2. Determining the person short and long term priorities
3. Analyzing this information or ones can advice changes to the person
financial habits or enable him to achieve his goals.

46
 RESEARCH DESIGN: For defining research methodology there are three
basic types of methods for marketing research. They are as follows:

a) The observation method.

b) The experimental method.
c) The survey method inclusive of panel method.

In observation method data are collected on the direct observation. No talks

place by observing the person the analysis makes the inventory as to
product used by him at his hoe or kept as retailers stocks.

In experimental method it is based on the concept that small-scale

experiment is useful to indicate the expectation of large-scale experiment.

The survey method information is gathered directly from individuals in three

ways;
1) Telephone
2) Mail
3) Personal interview
This survey method is also suffered to as the questionnaire technique.
There is also organized by-
1) In factual survey
2) Interpretative survey
3) Opinion survey

In my project point of view I have taken mainly the method of personal

interview by questionnaire technique in the personal interview by
questionnaire.

47
Technique I usually gathered information by face to face interviewing.

In this survey method I saw that the respondent was shown the exhibit and
advertisement to give his personal opinion and attitude.

In this method the direct interaction on occurred with the retailers and I
could collect the reliable information from them.

48
 RESEARCH PROCESS

DEFINING RESEARCH PROBLEM

INTENSIVE LITREATURE
FEED BACK
SURVEY

RESEARCH DESIGN

COLLECTION OF DATA

ANALYSIS OF DATA

RECOMMENDATION AND
REPORT WRITING

49
6.1 SAMPLING PLAN: Sampling plan of this project report basically
related to the number of points which are given below-
The universe studied prospectors in the areas of N.C.R. mainly Delhi,
Ghaziabad, Noida & Gurgoan.
The sampling unit is a single prospector outlet, which may be any
types.
Elements: potential prospector.
The geographical limit is the area of N.C.R.
Keeply the number of prospector in mind the sample size arrived at
was 200.
The sampling method followed was judgmental sampling.

50
 6.2 TIME SCHEDULE:

TOTAL DURATION 17 JULY TO 20 AUGUST

PREPATION FOR DATA COLLECTION 17 JULY TO 12 AUGUST
DATA COLLECTION 21 JULY TO 15 AUGUST
DATA CALIFFICATION AND PREPARATION 16 JULY TO 21 AUGUST
OF REPORT

7.0 DATA COLLECTION METHOD:

In my project report, which has entitled “a research repot on market
potential in life insurance solution in NCR region”, has been collected data
from the two method-
(A) PRIMARY SOURCE
(B) SECONDARY SOURCE
Under the primary source data collected by me through the observation,
survey and personal interview.

QUESTIONNAIRE METHOD: Through the questionnaire method

number of question asked by the different people from the different region
mainly DELHI, GHAZIABAD, NOIDA, GURGON by me. My questionnaire
method is a open ended method in which questions asked by me has a
limited number. The main purpose of this questionnaire is find out the view
of the people that they take insurance advisor’s advice or not. In which they
like to investment their savings. The format of questionnaire of this company
is given next page-

Survey method: This project report is also suffered by the survey

method for collecting the relevant information, so that marketing executive
will be success for making marketing strategy according to that survey.

51
 The main purpose of this survey which help the insurance advisors to
identify the type of market in which insurance advisors may be prospecting
and selling should he enter the life insurance business.
It will also aid management in estimating their sales potential and in
determining the type of training that would be most beneficial to him.
The names you enter represent people you know today. Should you enter
the business of selling life insurance, you will learn proven ways to meet
new people and expand these markets.
While many of those you list are presently prospect for life insurance and
others are not, do not make the need for life insurance a requirement for
adding their names. Do not list names by any predetermined selection
rating. Simply list the first 100 names of those who come to your mind most
readily.

(Sampling page)
Sources Of Names Source Letter
A. School / college friends
Persistency source
B. Family friends
C. Neighbours
D. Through Spouse
E. Through children
F. Through Hobbies / Spot
G. Previous employment
> 1 Lakh
> 1 Lakh but < 2.5 Lakhs
YEARLY INCOME > 2.5 Lakhs but < 5 Lakhs
> 5 Lakhs
(In Rupees)
18 – 25 YEARS
26 – 35 YEARS
AGE 35 – 44 YEARS

52
 OVER 45 YEARS
OCCUPATION Professional / proprietor
Manager / Executive
MARITAL STATUS Single
Married
ABILLITY TO Good
PROVIDE REFERALS Fair

INTERVIEW: This project report is also affected by the interview method. The
data is also collected through the interview. Under this method we go through the –
 Telephone interview
 Mail interview
 Personal interview

Under the telephone interview is used when the information to be collected limited.
This method is suitable for inquiry about information just released or telecast by
radio or television.

Under the mail interview data is collected when the data is more important.
Because there is no interviewer in mail surveys to ask questions and record
answers. It cannot be used to conduct an unstructured study.

Under the personal interview data is collected through the door to door. This
method is very relevant and it is also very difficult task to collect the information.
And takes much time.

OBSERVATION METHOD: This project report is also suffered by the

observation method. Because some time it is also happened when the number of
people was not ready to give the relevant information used this techniques to
collect the information.

53
 This observation is used when the research problem has been formulated
precisely and the researcher is told to observe the area of sturdy. The
researchers are asked to record their observations.

(B) SECONDARY DATA: under this project report data is also collected
through the secondary data. Under this source data is collected through the
magazine, through the web site, through the newspaper, through the other
insurance organization.

LIMITATIONS

 Some of the respondents were not cooperative.

 Some respondents were hesitating to give business details.

 Biasness is another limitation that the scope of the survey.

 The reliability and scope of survey greatly relies on the cooperation of the

respondents

54
FACTS &
FINDINGS

55
 FACTS AND FINDINGS

The first stage is the tabulation of data. Data tabulation is the process whereby raw
data on completed questioner or observation forms are transformed into the “list of
needed information” that was started in the information required for the study.
While there are no standardized tabulation and analysis procedure, which should
always be followed. It is quite common for researcher to proceed through the
following five steps:
 Preparing and organizing the raw data
 Summarizing the data contained in the category
 Determining whether significant differences exist between categories
 Explaining why difference exists.
 Make recommendation.
The data can be tabulated in the form of absolute number or can be converted into
percentage, although universal tabulation is widely used by researcher. It is often
possible to obtain more useful information if the answer to two questions are
sorted and counted in combination rather than separately

56
57
ANALYSIS & INTEREPRETATION
From the above questionnaire, we found number of findings and according
to them we can do analysis that which type of strategy should be adopted
for improving the earnings of the company given below-

QUESTION NO 1- How many people plan for their savings and investment?

YES NO
PEOPLE (IN %) 64% 36%

70%
60%
50% PEOPLE (IN % )

40%
30%
20%
10%
0%
YES NO

58
QUESTION NO.2- How many people take help of professional advisor for their

investment?

YES NO
PEOPLE (IN %) 35% 65%

70%
60%
50%
40% YES
30% NO

20%
10%
0%
YES NO

59
QUESTION NO. 3- Number of people save regularly for-

SAVING ALTERNATIVS PEOPLE IN %

RETIREMENT 15%
CHILDREN’S EDUCATION 25%
CHILDREN’S MARRIGE 40%
TAXATION 15%
OTHERS 5%

40%
35% RETIREMENT
30%
CHILDREN’S
25%
EDUCATION
20% CHILDREN’S
MARRIGE
15%
TAXATION
10%
5% OTHERS

0%
PEOPLE IN %

60
QUESTION NO. 4 – How many people save through insurance?

YES NO
PEOPLE (IN %) 35% 65%

100%

80%

60%
PEOPLE (IN %)
40%

20%

0%
YES NO

61
62
 SWOT ANALYSIS:
SWOT analysis of this company is given below-

STRENGTHS: Strength of this company is given below-

There is transparency in the scheme. The performance of the fund can be
monitored on daily or bi-weekly basis through the daily- declared NAV/ Unit prices
and also through the website of the company. At any given time you will k now the
accumulations under your policy due to the investment accruals.
Normally any time after one to three years time depending upon the scheme, you
can chose to withdraw your money by partial or complete surrender of units. The
death benefit will be proportionately reduced.
You can surrender the policy and get a guaranteed surrender value.
You can also take a loan on a policy after three years duration.
You can switch from one stream of investment to the other every year by paying a
small fee according to your changing needs.
You can top up your premium anytime during the term to increase your benefits.
The plans are available as endowment whole life money back or as pension plans.
In fact some companies allow you to have the contract as long as you want without
a fixed term, even up to death.
The option of with or without profits is also available in some plans. Actually some
companies give a guaranteed bonus as a percentage of the sum assured as bonus
The normal riders such as accident benefit, disability benefit critical illness or major
surgical assistance covers are also available.
The policies are issued with the usual “free-look” provision.
One company has floated a unit-linked policy for women with a critical rider benefit
specifically covering some gynecological illnesses.
You can buy the policy with a single premium like a bond or pay premium by the
usual yearly, half-yearly or quarterly mode.

63
Some companies offer even “premium holiday option”. If after paying premiums for
three years you are not able to pay the premium, the policy will be continued
adjusting the overdue premiums from your unit fund.

WEAKNESS: Weakness of this company is given below-

The expenses deducted from the premiums especially in the first two years
considerably shrink the amount that goes towards your investment corpus.
The heavy frontloading of the effectively acts as a disincentive for early
withdrawals.
The unit-linked plans completely pass on the investment risk to the policyholder
and he has to be ever vigilant.

64
OPPORTUNITIES: Opportunities of this company is given below-

If unit-linked policies can be given section 88 benefits there is a valid reason that
investment in an ordinary mutual fund should also be given the same benefit, as
they are basically same except for the addition of insurance element in the unit-
linked policy.
The rear end tax-free benefit is a very attractive tax break for the unit-linked policy
as per the current tax laws.
The return by way of capital appreciation in mutual fund as well as from the sale of
stocks are taxed as capital gains with the indexation benefit, according to the
current tax laws. Only the dividends are tax-free.

THREATS: Threats of this company is given below-

This is company is also suffered by the great market competition. There are
number of competitors of this company.
Another threat of this company is that the changing environment. Changing
environment means change in government, change in government policy, change
is competitor’s policy.

65
66
 CONCLUSION:

Unit – linked policies are a very valuable addition to the existing array of
insurance producers. But, when sold to a wrong prospect or brought a
wrong agent it will become useless. IRDA and the companies should take
care that well- trained and professional agents market these product.

In view of what was discussed above, the buyer if they need such plans
according to their risk appetite should select a known, well- informed agent
who is reliable. Agents who are already dealing with investment or saving
instrument or mutual funds, if they sell life insurance also would be a good
choice. In case they hence doubts about the availability of such agents, it
would be more advisable to go to corporate agent with a background in
financial instruments or still better, to a good broker who are likely to be
better equipped than an ordinary agent. Continued advice and guidance will
be available with the corporate agent and the broker as they are corporate
entities.

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RECOMMENDATION & SUGGESTION
By this project report there are the number of suggestion which can be given to the
company are given below-

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9.1 Company should recruit well-informed, well-qualified, well-financial knowledge.
So that he will success to satisfy the potential customer for their investment
or savings.
9.2 In fact, the contract to buy the product in my opinion is not the usual insurance
contract governed by the principle of unerimma fides but one of caveat
emptor. Under the principle of utmost good faith, the company expects the
proposes to give all the material facts so that it can charge the “correct
premium” based on the factors of risk presented.
9.3 How to deal with the situation? The companies or IDRA cannot educate the
policyholder. They should educate the agent.
9.4 Prospective unit-linked policy buyers should understand the structure of the
plans , the factors that determine how good their returns will be and the
risks involved and then figure out if they have the risk appetite, whether they
can get better returns on their investment elsewhere and whether their
investment horizon matches the long lock-ins over which these plans offer
the best rewards.
9.5 Insurance companies will generally give you a picture on the basis of the past
performance of the fund but the past performance of the fund is never an
indicator of how the fund might perform in the future.
9.6 Insurance companies allow you to shift from one fund to the other at any point
of time. This can be useful if you want to plan your investment based on
your life needs.

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 ANNEXURE:

QUESTIONNAIRE:

Birla Sun Life Insurance Co. Ltd.

Life insurance coverage survey

Name: -----------------------------------------------------------------------------------------
Address: ---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Occupation: -----------------------------------------------------------------------------------
Tel.: Residence ---------------------------- Office ------------------------------------------
Date of Birth: ------------------------------ Annual Income -------------------------------
Family Particulars:
Name of spouse ------------------------------------------------------- Age ------------------
No. Of Children --------------------------------------------------------------------------------

1. Do you plan your savings and investments?

Yes No
2. Do you take help of professional advisor for your investment?
Yes No
3. Do you save regularly for
Retirement Children’s marriage

Children’s education Taxation Others

4. Do you save through insurance?

Yes No
5. Would you like to get professional advice in insurance solution?
SURVEY
Yes No
(Sampling page)

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Sources Of Names Source Letter
A. School / college friends
Persistency source
B. Family friends
C. Neighbours

NAMES SUBMITTED
D. Through Spouse
E. Through children
F. Through Hobbies / Spot
G. Previous employment
> 1 Lakh
> 1 Lakh but < 2.5 Lakhs
YEARLY INCOME > 2.5 Lakhs but < 5 Lakhs
> 5 Lakhs
(In Rupees)
18 – 25 YEARS
26 – 35 YEARS
AGE 35 – 44 YEARS
OVER 45 YEARS
OCCUPATION Professional / proprietor
Manager / Executive
MARITAL STATUS Single
Married
ABILLITY TO Good
PROVIDE REFERALS Fair

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73
 BIBLIOGRAPHY

B00KS- C.R.KOTHARI, PHILIP KOTLER.

MAGAZINE- INSURANCE WATCH, INDIA TODAY, BUSINESS

TODAY, BUSINESS WORLD.

NEWS PAPER- THE TIMES OF NEW INDIA, HINDUSTAN

TIMES, ECONOMICS TIMES, BUSINESS --
STANDARD.

WEB-SITE- www.birlasunlife.com , www.google.com

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