A

PROJECT REPORT
ON
MARKET POTENTIAL IN LIFE INSURANCE SERVICES

SUBMITTED BY
DESH DEEPAK CHATURVEDI
MMM 3rd SEM
YEAR
2009-2011
UNDER THE GUIDANCE OF
PROF. --------------------- MR. -------------------
INTERNAL GUIDE EXTERNAL GUIDE
SUBMITTED TO
UNIVERSITY OF PUNE
IN PARTIAL FULFILLMENT OF
MASTER OF MARKETING MANAGEMENT

MATRIX BUSINESS SCHOOL

AMBEGAON PUNE- 411041

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 DECLARATION
STUDENT DECLARATION

I, the undersigned ‘DESH DEEPAK CHATURVEDI’, declare that the Project

Report titled as, MARKET POTENTIAL IN “LIFE INSURANCE SERVICES.”
Submitted by me for partial fulfillment of Master Of Marketing Management
(MMM) is the original record of the project work carried out by me during the period
from ______________to_____________ under the Able guidance of MADHURI
SHETE and the same has not formed the basis for the award of any degree, diploma,
association, fellowship, title – in or for any other Statutory University or Autonomous
Institution functioning in India or abroad imparting higher education in Management.

Date_______ ------------------------------

Place: Pune DESH DEEPAK CHATURVEDI

MMM.3rd Semester
Roll No.__________

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 ACKNOWLEDGEMENT

At the start , I would like to express my sincere gratitude to MADHURI SHETE, my

project guide from MATRIX BUSINESS SCHOOL, PUNE – 411041 for successful
completion of a project in partial fulfillment of Master of Marketing Management
(MMM) under her able guidance to allow me to work on such an interesting subject.
She provided me proper and correct direction for completion of project work. Her
continuous guidance during the course of project helped me in channelizing my
efforts, quite, appropriately.
I am also thankful to MR. VIKRANT BHALLA of the external guide of ADITYA
BIRLA MONEY MART LTD. For guidance given and cooperation extended for
carrying out the project.
I am also thankful to all the respondents and friends who have helped me to conclude
the contents of the project in decent and presentable manner.

Date____________ _____________________
Place: Pune DESH DEEPAK CHATURVEDI
MMM 3rd Semester
Roll No.___________

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 INDEX

Chapter No. Title of the Chapter Page No.

1 Student Declaration 5

2 Acknowledgement 7

3 Certificate of Head of Institute 8

4 Certificate of company 9

5 Introduction 10

6 Organisation Structure 12

7 Services of Organisation 12

8 Problems in Organisation 14

9 Distribution Network 35

10 Pricing Policy of The Company

11 Objective of the study

12 Research Methodology

13 Data Collection Method

14 Tabulation & Analysis

15 SWOT Analysis

16 Conclusion

17 Suggestion

18 Biblogrophy

INTRODUCTION
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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 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.

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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 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.

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.

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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.

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.

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.
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 The mission of the Aditya Birla Group is creation of value for its customers, shareholders,
employees and the society at large.

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

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.

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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.

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.

OUR VALUES:
• INTEGRITY
• TRANSPERENCY
• CUSTOMER FOCUS
• EXCELLENCE
• INNOVATION
• MERITOCRACY
• RESPECT FOR THE INDIVIDUAL

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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.

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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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.

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

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.

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.

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-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.

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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.

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.

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.

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

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

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.

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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.

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.

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

14
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.

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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.

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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.

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.

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.

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

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 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.

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6.0 PRICING POLICY OF THE COMPANY:

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 %ASSETS PROTECTOR BUILDER ENHANCER

IN:

Government and 85% 70% 55%

government approved
securities
Rated corporate bonds (AA 30% 30% 30%
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%

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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 YEAR SINGLE 5-PAY 10-PAY 15-PAY OR 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:

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

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 11th year onwards this annual charge will increase subject to a
maximum of 3.75%per year.

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

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 In addition to the above policy-loading fee, the following policy fees and charges will be
recovered from the policy fund.

5.

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 5.0 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-

5.1 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.

5.2 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.

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 6. RESEARCH METHODOLOGY: 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.

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.
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 RESEARCH PROCESS

DEFINING RESEARCH
PROBLEM

INTENSIVE LITREATURE
FEED
SURVEY
BACK

RESEARCH DESIGN

COLLECTION OF DATA

ANALYSIS OF DATA

RECOMMENDATION AND
REPORT WRITING

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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 Pune region.
The sampling unit is a single prospector outlet, which may be any types.
Elements: potential prospector.
Keeply the number of prospector in mind the sample size arrived at was 100.
The sampling method followed was judgmental sampling.

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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 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.
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.

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 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.
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.

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8.0 TABULATION & ANALYSIS:
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-

1. Do you plan your savings and investments?

Yes No

YES 60

NO 40

Analysis-

The pie chart explain the plan of saving investment as per the respondent of the particular question,

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60% of respondent said Yes, 40% of respondent said No.
So by analyzing the responses of this question I as a researcher can identified the respondent are
more thinking about planning of his saving & investment.

2.Do You take help of professional advisor for your investment?

Yes No
Yes 40
No 60

A
Analysis-
From the table bar graph depicted above the frequency of help of professional
advisor for investment, 40% of respondent said Yes, 60% of respondent said No.
36
37
 3.Do you save regularly for?

Retirement Children marriage Children Education

Taxation Others

Retirement 20
Children marriage 20
Children Education 30
Taxation 20
Others 10

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4. Would you like to get professional advice in insurance solution?
Yes No

Yes 90
No 10

39
5. Which life insurance company does you aware with?
LIC and SBI Life Insurance Both LIC and Birla Sun Life Insurance both

LIC and Max New York Life Both LIC and IDBI Federal Fortis Both

LIC and Future Generali Both

LIC and SBI Life Insurance Both 20

LIC and Birla Sun Life Insurance both 20
LIC and Max New York Life Both 30
LIC and IDBI Federal Fortis Both 20
LIC and Future Generali Both 10

6. Which company insurance policy do you have?

LIC ICICI Prudential Life Insurance

40
 Birla Life Insurance Others

LIC 60
ICICI Prudential Life Insurance 10
Birla Life Insurance 15
Other 15

7. Term of your insurance policy?

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 05-10 Years 10-15 Years

15-20 years 20-25 Years

05-10 Years 15
10-15 Years 20
15-20 Years 20
20-25 Years 45

8. What are your perceptions about benefits of life insurance?

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 Covers future uncertainty Tax Saving

Investments

Covers future uncertainty 65

Tax Saving 20
Investemt 15

9. Which feature of life insurance policy will you consider while buying?

43
 Money back guarantee Large Risk Coverage

Low Premium Company credibility

Money back guarantee 25

Large risk coverage 45
Low premium 15
Company credibility 15

10. Who influenced you for purchasing a life insurance policy?

Sales Representative Agent

Friends & Relatives Advertisement

44
Sales Representive 20
Agent 55
Friends & Relatives 10
Advertisement 15

11. Are you satisfied with your life insurance policy?

Highly satisfied Satisfied

Not satisfied

45
Highly Satisfied 50
Satisfied 30
Not satisfied 20

12. Are you aware of all the plans and gets updates from the company?
Yes No

Yes 40

46
No 60

13. Which sector do you prefer insurance?

Public sector Private sector

Public sector 60
Private sector 40
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14. Which type of policy do you prefer?
Life insurance Pension plan

Mediclaim

Life insurance 50

48
Pension Plan 30
Mediclaim 20

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51
 SWOT ANALYSIS:
SWOT analysis of this company is given below-

STRENGTHS: Strength of this company is given below-

7.1.1 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.
7.1.2 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.
7.1.3 You can surrender the policy and get a guaranteed surrender value.
7.1.4 You can also take a loan on a policy after three years duration.
7.1.5 You can switch from one stream of investment to the other every year by paying a small
fee according to your changing needs.
7.1.6 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.
7.1.7 In fact some companies allow you to have the contract as long as you want without a fixed
term, even up to death.
7.1.8 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
7.1.9 The normal riders such as accident benefit, disability benefit critical illness or major
surgical assistance covers are also available.
7.1.10 The policies are issued with the usual “free-look” provision.
7.1.11 One company has floated a unit-linked policy for women with a critical rider benefit
specifically covering some gynecological illnesses.
7.1.12 You can buy the policy with a single premium like a bond or pay premium by the usual
yearly, half-yearly or quarterly mode.
7.1.13 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.

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

OPPORTUNITIES: Opportunities of this company is given below-

7.1.17 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.
7.1.18 The rear end tax-free benefit is a very attractive tax break for the unit-linked policy as per
the current tax laws.
7.1.19 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-

7.1.20 This is company is also suffered by the great market competition. There are number of
competitors of this company.
7.1.21 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.

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54
8.0 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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56
9.0 SUGGESTION:
By this project report there are the number of suggestion which can be given to the company
are given below-
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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58
 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.Would you like to get professional advice in insurance solution?

Yes No

59
5. Which life insurance company do you aware with
LIC Birla Sun Life Insurance
ICICI Prudential Life Insurance SBI Life Insurance
Reliance Life Insurance

6. Which company insurance policy do you have ?

LIC ICICI Prudential Life Insurance
Birla Life Insurance Others

7. Term of your insurance policy ?

05-10 Years 10-15 Years
15-20 years 20-25 Years

8. What are your perception about benefits of life insurance ?

Covers future uncertainty Tax Saving
Investments

9. Which feature of life insurance policy will you consider while buying ?
Money back gurantee Large Risk Coverage
Low Premium Company credibility

10. Who influenced you for purchasing a life insurance policy?

Agent
Friends & Relatives Advertisement

11. Are you satisfied with your life insurance policy?

Highly satisfied Satisfied
Not satisfied

60
12. Are you aware of all the plans and gets updates from the company ?
Yes No

13. Which sector do you prefer insurance ?

Public sector Private sector

14. Which type of policy do you prefer ?

Life insurance Pension plan
Medi claim

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 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 ,Wikipedia.com

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