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INTRODUCTION

INSURANCE

The meaning of insurance: Insurance is a policy from a large financial


institution that offers a person, company, or other entity reimbursement or
financial protection against possible future losses or damages.

A simple example will make the meaning of insurance easy to


understand. A biker is always subjected to the risk of head injury. But it
is not certain that the accident causing him the head injury would
definitely occur. Still, people riding bikes cover their heads with helmets.
This helmet in such cases acts as insurance by protecting him/her from
any possible danger. The price paid was the possible inconvenience or act
of wearing the helmet; this i.e. equivalent to the insurance premiums paid.

Major types of insurances are as mentioned below:

 Life insurance: Descendant’s family receives financial benefits.


Life insurances also offer paid proceeds to the beneficiary.
 Automobile insurance: Usually automobile insurances cover
damages and legal financial expenditures of the automobile driver.

 Health insurance: Health insurance covers the expenditures


associated to treatment and medical expenditures.

 Credit insurance: Borrowers often fail to repay debts, loans and


mortgages due to certain unavoidable circumstances, credit
insurances can be of great help during such crisis.
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 Property insurance: Property protection insurance provides


protection from risks associated to theft, fire, floods etc.

Life insurance

Life insurance or life assurance is a contract between the policy


owner and the insurer, where the insurer agrees to pay a sum of money
upon the occurrence of the insured individual's or individuals' death or
other event, such as terminal illness or critical illness. In return, the policy
owner agrees to pay a stipulated amount called a premium at regular
intervals or in lump sums.

How life insurance works

There are three parties in a life insurance transaction; the insurer,


the insured, and the owner of the policy (policyholder), although the
owner and the insured are often the same person. For example, if Mr.
Rajan buys a policy on his own life, he is both the owner and the insured.
But if Mrs. Anita, his wife, buys a policy on Rajan’s life, she is the owner
and he is the insured. The owner of the policy is called the grantee (he or
she will be the person who will pay for the policy). Another important
person involved is the beneficiary.

The beneficiary is the person or persons who will receive the


policy proceeds upon the death of the insured. The beneficiary is not a
party to the policy, but is designated by the owner, who may change the
beneficiary unless the policy has an irrevocable beneficiary designation.
With an irrevocable beneficiary, that beneficiary must agree to changes in
beneficiary, policy assignment, or borrowing of cash value.
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The policy, like all insurance policies, is a legal contract specifying the
terms and conditions of the risk assumed. Special provisions apply,
including a suicide clause wherein the policy becomes null if the insured
commits suicide within a specified time for the policy date (usually two
years). Any misrepresentation by the owner or insured on the application
is also grounds for nullification. Most contracts have a contestability
period, also usually a two-year period; if the insured dies within this
period, the insurer has a legal right to contest the claim and request
additional information before deciding to pay or deny the claim.

The face amount of the policy is normally the amount paid when the
policy matures, although policies can provide for greater or lesser
amounts. The policy matures when the insured dies or reaches a specified
age. The most common reason to buy a life insurance policy is to protect
the financial interests of the owner of the policy in the event of the
insured's demise. The insurance proceeds would pay for funeral and other
death costs or be invested to provide income replacing the deceased's
wages. Other reasons include estate planning and retirement. The owner
(if not the insured) must have an insurable interest in the insured, i.e. a
legitimate reason for insuring another person’s life. The insurer (the life
insurance company) calculates the policy prices with an intent to recover
claims to be paid and administrative costs, and to make a profit.
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Working of Insurance

MAJOR PLAYERS OF INDIA IN INSURANCE

Reliance Life Insurance is a part of the Reliance group. It is one of the


partners of Reliance Capital Ltd which is a Anil Dhirubhai Ambani
Group. Reliance Capital is one India's most dominant private sector
financial services companies. They offer insurance products which help
you with savings as well as give you protection.
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Canara HSBC Life is a joint venture of Canara Bank, HSBC Insurance


(Asia pacific) & Oriental bank of Commerce. The Company got its
approval from IRDA in June 2008 and from that commencing its
business. They have more than 4100 branches all over India.

DLF pramerica Life Insurance Company Ltd. is a joint venture between


DLF Limited & Prudential International Insurance Holdings Limited.
DLF Pramerica believes in delivering a secure & enrich life to there
customers.

MetLife One of the fastest growing insurance company in India is


MetLife. The company started its operations in between 2000-2001. They
have a range of various products to offer.

ICICI Prudential ICICI Bank with Prudential plc, both well known &
strong financial institutions came together in December 2000 to form an
insurance company - ICICI Prudential Life Insurance.

Max New York Life Max India’s leading multi business corporation &
New York Life joined there hands in 2000.The company started there
operations in 2001. The company is involved in Life & health products.

Bajaj Allianz Bajaj who are into iron & steel, finance, insurance & etc
and Allianz who provides financial services when came together they
formed Bajaj Allianz Life Insurance Company.

Bharti AXA Bharti AXA Life Insurance is a joint venture between


Bharti & AXA. The company started its functionality in December 2006
and they always believe to be a strong financial institute.
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HDFC Standard Life HDFC Standard Life Insurance is a joint venture


between Housing Development Finance Corporation Limited & a Group
of Standard Life Plc.The Company started commencing its business in
December 2000.

AEGON Religare AEGON Religare Life Insurance Company Ltd is a


joint venture with AEGON, Religare and Bennett, Coleman & Company
a part of Times Group. AEGON Religare Life Insurance Company was
launched in July 2008.

Kotak Mahindra A joint venture of Kotak Mahindra group & Old


Mutual plc is known as Kotak Mahindra Old Mutual Funds. The
Company started commencing its business in 2001. The company aim is
to help customers in making there financial decisions.

Future Generali Life Future Generali is a joint venture between Future


Group of India & Italy based Generali Group. Future Generali in India is
into both Life & Non Life businesses in India. The company wants to
provide a financial security to all.

SBI Life SBI Life Insurance Company Limited is a joint venture


between State Bank of India and BNP Paribas Assurance. It is present in
more than 41 countries across the world. SBI Life offers a variety of
plans in life insurance and pension.

Shriram Life Shriram Life Insurance Company is a joint venture


between Shriram Group and Sanlam Group. Shriram Group is one of
India’s most esteemed financial services & Sanlam Group is one of the
largest life insurance providers of South Africa.

TATA AIG The TATA Group and American International Group Inc
together formed Tata AIG Life Insurance Co. Ltd.Tata Group holds 74%
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stake in the insurance venture with AIG holding the balance 26%. They
started their operations in April 2001

Aviva Aviva, one of UK's largest insurance company and world's 5th
largest insurance group. It was one of the first international insurance
company to set up its office in India in the year 1995. They introduced
the concept of banc assurance in India.

IDBI Fortis IDBI Fortis Life Insurance Co. Ltd is a joint venture
between three financial institutes; they are IDBI Bank, Federal Bank and
Fortis. They introduced there plans in March 2008. IDBI owns 48%
equity while Federal Bank and Fortis own 26% equity each.

Sahara The Sahara Pariwar stepped into the insurance business by


launching Sahara India Life Insurance Co. Ltd. They received the IRDA
license in February 2004 and started their operations in October 2004.
They are the first solely owned private sector insurance company in India.

ING VYSYA ING Life was established in 2001 as a joint venture


between ING Insurance International B.V. (INGI), ING Vysya Bank
Limited and GMR Industries Limited. At present, INGI, Exide Industries
Limited, Ambuja Cement Ltd, Enam Group are the joint venture partners.

Star Union Star Union Dai-ichi Life Insurance Co.Ltd. is formed by


three various financial institutions. Bank of India, Union Bank of India
and Dai-ichi Mutual Life Insurance Company This firm was incorporated
in the year 2007 and got their IRDA license on the 26th Dec 2008.
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Some of the important milestones in the life insurance


business in India are:

 1818: Oriental Life Insurance Company, the


first life insurance company on Indian soil started functioning.
 1870: Bombay Mutual Life Assurance Society,
the first Indian life insurance company started its business.

 1912: The Indian Life Assurance Companies


Act enacted as the first statute to regulate the life insurance business.

 1928: The Indian Insurance Companies Act


enacted to enable the government to collect statistical information
about both life and non-life insurance businesses.

 1938: Earlier legislation consolidated and


amended to by the Insurance Act with the objective of protecting the
interests of the insuring public.

 1956: 245 Indian and foreign insurers and


provident societies are taken over by the central government and
nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crores from the Government of
India.
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COMPANY PROFILE

KARVY STOCK BROKING LIMITED

The karvy group was formed in 1983 at Hyderabad, India.


KARVY is a premier integrated financial services provider, and ranked
among the top five in the country in all its business segments, services
over 16 million individual investors in various capacities, and provides
investor services to over 300 Corporate.

KARVY covers the entire spectrum of financial services such as


Stock broking, Depository Participants, Distribution of financial products
like mutual funds, bonds, fixed deposit, Merchant Banking & Corporate
Finance, Insurance Broking, Commodities Broking, Personal Finance
Advisory Services, placement of equity, IPOs, among others.

Karvy has a professional management team and ranks among the


best in technology, operations, and more importantly, in research of
various industrial segments.

Karvy computer share limited is India’s largest registrar and


transfer agent with a client base of nearly 500 blue chips corporate,
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managing over 2 crores accounts. Karvy stock brokers limited, member


of national stock exchange of India and the Bombay stock exchange, rank
among the top five stock brokers in India with over six lakhs active
account it ranks among the top five depositary participants in India,
registered with NSDL and CSDL, karvy commorade, member of NCDEX
and MCX ranks among the top three commodities brokers in the country.
A Karvy insurance broker is registered as a broker with IRDA and ranks
among the top five insurance agent in the country. Registered with AMFI
as a corporate agent, karvy is also among top mutual fund mobilize with
over Rs 5000 crores under management. Karvy realty services, which
started in 2006, have quickly established itself as a broker, who adds
value in the realty sector. Karvy global offer niche off to off shoring
services to U.S clients.

Karvy has 575 offices in 375 locations across India and overseas at Dubai
and New York. Over 9000 highly qualified people staff karvy.

Quality Policy

To achieve and retain leadership, Karvy shall aim for complete customer
satisfaction, by combining its human and technological resources, to
provide superior quality financial services. In the process, Karvy will
strive to exceed Customer's expectations.

Quality Objectives

The Quality Policy of Karvy is to:

• Build in-house processes that will ensure transparent and harmonious


relationships with its clients and investors to provide high quality of
services.
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• Establish a proper relationship with its investor service agents and


vendors that will help in keeping up its commitments to the customers.

• Provide high quality of work life for all its employees and equip them
with adequate knowledge & skills so as to respond to customer's needs.

• Continue to uphold the values of honesty & integrity and strive to


establish unparalleled standards in business ethics.

• Use state-of-the art information technology in developing new and


innovative financial products and services to meet the changing needs of
investors and clients.

• Strive to be a reliable source of value-added financial products and


services and constantly guide the individuals and institutions in making a
judicious choice of same.

• Strive to keep all stake-holders (shareholders, clients, investors,


employees, suppliers and regulatory authorities) proud and satisfied.

Board of Directors:

Mr. C. Parthasarathy

Chairman & Managing Director

Mr. M. Yugandhar

Managing Director

Mr. M S. Ramakrishna

Director

Mr. Prasad V Potluri


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Director

Mr. Sunil Mitchigen

CEO

KARVY GROUP OF COMPANIES

 Karvy Consultants Limited

 Karvy Stock Brokering Limited

 Karvy Investors Services Limited

 Karvy Computer share Pvt Limited

 Karvy Global Services Limited

 Karvy Comtrade Limited

 Karvy Insurance Broking Limited

 Karvy Reality & Services (India) Limited

IMPORTANT CLINTELE

 Reliance Industries

 Indian Oil Corporation

 IDBI

 LIC Mutual fund

 Hindustan Lever
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 Principal Mutual Fund

 Marico Industries

 Patni Computers

 Morgan Stanley

ACHIEVEMENTS

o First ISO-9002 Certified Registrar in India

o A Category-I-Merchant banker

o A Category-I-Registrar to Public Issues

o Ranked as “The Most admired Registrar” by MARG

o Handled the largest-ever Public Issues-TCS

o Handled over 700 Public Issues as Registrars

o Largest network of Branches and Business Associates

o Largest independent distributor of financial products

o Among the top 5 Stock Brokers

o Among the top 3 Depositary Participants

PRODUCTS PROFILE

The company deals with the following business activities

1. Stock Broking
2. Mutual Fund Services
3. De-mat account opening
4. Depositary participants Services(TIN/PAN)
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5. Financial Product Services(investment)


6. Corporate finance and Merchant banking
7. Insurance Broking
Life

Non life

8. IT Enabled Services
9. Registrars and Transfer agents.

BIRLA SUN LIFE INSURANCE COMPANY LIMITED

Birla Sun Life Insurance Company Limited is a joint venture between


The Aditya Birla Group, one of the largest business houses in India and
Sun Life Financial Inc., a leading international financial services
organization. The local knowledge of the Aditya Birla Group combined
with the expertise of Sun Life Financial Inc., offers a formidable
protection for your future.

The Aditya Birla Group has a turnover of close to Rs. 119000


crores, with a market capitalization of Rs. 133875 crores (as on 31st
March 2008). It has over 100,000 employees across all its units
worldwide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some
of its key companies are Hindalco, Grasim and Aditya Birla Nuvo.

SUN LIFE FINANCIAL

Sun life financial –based in Canada-started in 1865.


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It operates in all the important markets of the world like Canada,


the United States, the United Kingdom, Hong Kong, the Philippines,
Japan, Indonesia, India, China and Bermuda.

Sun Life Financial Inc. has assets under management of over


US$404.7 billion (as on 31st March, 2008). It is a leading performer in
the life insurance market in Canada.

Birla Sun Life Insurance (BSLI) has been operating for 9 years. It has
contributed significantly to the growth and development of the life
insurance industry in India. It pioneered the launch of Unit Linked Life
Insurance plans amongst the private players in India. It was the first
player in the industry to sell its policies through the Banc assurance route
and through the Internet. It was the first private sector player to introduce
a Pure Term plan in the Indian market. BSLI has covered more than 2
million lives since it commenced operations. And its customer base is is
spread across more than 1500 towns and cities in India. The company has
a capital base of Rs. 1274.5 crores as on 31st March 2008.

The growth and development of the life insurance industry in India


and currently ranks amongst the top 5 private life insurance companies in
the country.

Known for its innovation and creating industry benchmarks, BSLI


has several firsts to its credit. It was the first Indian Insurance Company
to introduce “Free Look Period” and the same was made mandatory by
IRDA for all other life insurance companies. Additionally, BSLI
pioneered the launch of Unit Linked Life Insurance plans amongst the
private players in India. To establish credibility and further transparency,
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BSLI also enjoys the prestige to be the originator of practice to disclose


portfolio on monthly basis. These category development initiatives have
helped BSLI be closer to its policy holders’ expectations, which gets
further accentuated by the complete bouquet of insurance products (viz.
pure term plan, life stage products, health plan and retirement plan) that
the company offers.

Add to this, the extensive reach through its network of 600


branches and 1,75,000 empanelled advisors. This impressive combination
of domain expertise, product range, reach and ears on ground, helped
BSLI cover more than 2 million lives since it commenced operations and
establish a customer base spread across more than 1500 towns and cities
in India. To ensure that our customers have an impeccable experience,
BSLI has ensured that it has lowest outstanding claims ratio of 0.00% for
FY 2008-09. Additionally, BSLI has the best Turn around Time
according to LOMA on all claims Parameters. Such services are well
supported by sound financials that the Company has. The AUM of BSLI
stood at Rs. 8165 crores as on February 28, 2009, while as on March
31, 2009, the company has a robust capital base of Rs. 2000 crores.

ACHIEVEMENTS OF BSLI

 1st to introduce ULIP fund options.1st to launch illustrations so that


customers understand the products better before they buy.

 1st to issue NAVs of funds for better transparency.

 1st to disclose portfolio on a monthly basis.

 1st to introduce “Free Look Period” and the same was made
mandatory by IRDA for all other Life Insurance Companies.
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 MAJOR COMPETITOR AT A GLANCE LIC (LIFE


INSURACE CORPORATION)

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices,
apart from its corporate office in the year 1956. Since life insurance
contracts are long term contracts and during the currency of the policy it
requires a variety of services need was felt in the later years to expand the
operations and place a branch office at each district headquarter. Re-
organization of LIC took place and large numbers of new branch offices
were opened. As a result of re-organization servicing functions were
transferred to the branches, and branches were made accounting units. It
worked wonders with the performance of the corporation. It may be seen
that from about 200.00 crores of New Business in 1957 the corporation
crossed 1000.00 crores only in the year 1969-70, and it took another 10
years for LIC to cross 2000.00 crore mark of new business. But with re-
organization happening in the early eighties, by 1985-86 LIC had already
crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100
divisional offices, 7 zonal offices and the corporate office. LIC’s Wide
Area Network covers 100 divisional offices and connects all the branches
through a Metro Area Network. LIC has tied up with some Banks and
Service providers to offer on-line premium collection facility in selected
cities. LIC’s ECS and ATM premium payment facility is an addition to
customer convenience. Apart from on-line Kiosks and IVRS, Info Centre
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have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai,


Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a
vision of providing easy access to its policyholders, LIC has launched its
SATELLITE SAMPARK offices. The satellite offices are smaller, leaner
and closer to the customer. The digitalized records of the satellite offices
will facilitate anywhere servicing and many other conveniences in the
future.

LIC continues to be the dominant life insurer even in the liberalized


scenario of Indian insurance and is moving fast on a new growth
trajectory surpassing its own past records.

LIC has issued over one crore policies during the current year. It has
crossed milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005,
posting a healthy growth rate of 16.67% over the corresponding period
of the previous year.

From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life insurance
business.

Birla Sun Life Insurance Co. Ltd

Following are the Life Insurance plans that Birla Sun life
Insurance Company Ltd.

1.)Birla Sun Life Insurance Term Plan - This plan can take care of
your financial commitments of yours towards your family by
providing large cover at low cost. Minimum age of entry for this plan
is 18-55 and maximum maturity age is 70 years.
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2. Birla Sun Life Insurance Premium Back Term Plan - This is a


low cost life cover promises you to refund the entire premium on
maturity or death. Two options are also there to choose 100%
premium back or 125% premium back. Maximum term period for this
plan is 20 years.

3. Birla Sun Life Insurance Guaranteed Bachat Plan - It’s an non


participating endowment plan offers you guaranteed returns and
chance to earn survival benefit from the 3rd year onwards. You can
withdraw this benefit each tear or can use it as to pay the premium
dues.

4. Birla Sun Life Insurance Money Back Plus Plan - This is also a
non-participating endowment plan, which gives you maturity and
survival both benefits. One remarkable point is that on every policy
anniversary it increases your cover by an equal amount of your base
premium.

5. Birla Sun Life Insurance Gold-Plus II - It’s an investment plan


offering nine-funding option to choose and 100% equity fund option
also. Free unlimited switches are given to you to manage your
investments. This plan offers good liquidity to you.

6. Birla Sun life insurance Platinum Plus - It is a unit linked, non


participating insurance plan. In this plan, the investment risk is borne
by the policyholder but not if this policy is detained till maturity.
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7. Birla Sun Life Insurance Saral Jeevan Plan - In today’s fast life
it’s really easy to buy an insurance plan, which you immediately can
purchase just by providing three health statements to the company.
BSLI saral Jeevan is the best option to go for.
8. Birla Sun Life Insurance Supreme-Life - It’s a unit linked non-
participating plan providing 8-fund options to choose. It gives a choice
of two death benefits.

9. Birla Sun Life Insurance Dream Plan - It’s a unit-linked policy,


which provides you guaranteed returns, 0% allocation charges, and
option to double or triple the guaranteed maturity.

10. Birla Sun Life Insurance Classic Life Premier - It will give you
guaranteed additions in the form of guaranteed units and a good
choice of 8 investment funds are also there. You are free to choose the
term period of 10, 20, 30 or whole life.

11. Birla Sun Life Insurance Simply Life - It ensures a lifetime of


tax-free investments to fulfill the needs of your dear ones. It’s a
market related plan provides you a good death benefit amount.

12. Birla Sun Life Insurance Prime Life Premier - It’s a single time
investment with top up options. It keeps you hassle free and provides
you guaranteed returns at regular intervals.

13. Birla Sun Life Insurance PrimeLife - It is a single premium


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policy gives you the benefit of life insurance and investments as well.
It’s a non-participating ULIP policy.

14. Birla Sun Life Insurance Flexi Cash Flow - For this policy you
can pay lump sum premium payment at regular intervals. It will give
you 3% guaranteed returns on net policy charges.

15. Birla Sun Life Insurance Flexi Save Plus - This plan will give
you the choices of 3 fund options, maturity ages & guaranteed returns
of 3%.

16. Birla Sun Life Insurance Flexi Life Line - This would provide
you a life long cover till 100 years of age and will give you the option
of tax-free partial withdrawals.

17. Birla Sun Life Insurance Single Premium Bond - This plan
gives you the opportunity to make one time investment with no
medical tests and will also gives you the facility of high entry age. It’s
a short term investment plan provides you the option of 5 years or 10
years term period.

18. Birla Sun Life Insurance Freedom 58 - It’s a non- participating


ulip plan. It helps you accumulate your premiums and the investment
return there of into a corpus of your retirement.
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19. Birla Sun Life Insurance Flexi Secure Life Retirement Plan II
- This will provide you the option to take a life cover or not. You can
choose your retirement age yourself whether you want to
propone/postpone it.

20. Birla Sun Life Insurance Children's Dream Plan - It’s a unit-
linked policy, which provides you guaranteed returns, 0% allocation
charges, and option to double or triple the guaranteed maturity.

Various Plans offered by LIC are as follows:


ENDOWMENT ASSURANCE PLANS
1. Jeevan Amrit: This plan is designed for a higher cover at a lower cost.
In this plan premium payment is limited to 3 or 4 or 5 years and the
premium payable during the first year is higher than the premiums
payable in subsequent years.

2. New Janaraksha Plan: Is an Endowment Assurance plan that


provides financial protection against death throughout the term of plan. It
pays the maturity amount on survival to the end of the term.

3. Jeevan Mitra (Double Cover Endowment Plan) : Is an endowment


plan which takes care of the financial needs even if death of the
policyholder for the whole term of the plan.

4. Jeevan Mitra (Triple Cover Endowment Plan) : Is an endowment


plan where thrice the Sum Assured plus all bonuses on the basic sum
assured to date is payable in a lump sum upon the death of the life
assured.
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5. The Endowment Assurance Policy: This policy has a provisions for


the family of the Life Assured in event of his early death and also assures
a lump sum at a desired age.

6. The Endowment Assurance Policy-Limited Payment: In this policy


the payment of premium can be limited either to a single payment or to a
term shorter than the policy.

CHILDREN PLANS

1. Jeevan Anurag: Is plan designed for the children educational


requirements. This plan can be taken on the parent’s life. The basic sum
assured is given immediately on the death of the life assured during the
term of the policy.

2. Jeevan Kishore: Is a plan which can be availed by the parent or grand


parents of the children. It is an endowment assurance plan for children of
less than 12 years of age.

3. Jeevan Chhaya: It is a plan where financial protection is given against


death during the term of the plan. It is an Endowment Assurance plan.
Besides this benefit one-fourth of Sum Assured is payable at the end of
each of last four years of policy term irrespective if the life assured dies
or survives the duration of the policy.

4. Komal Jeevan: Is a Money Back Plan which can be bought by the


parent or grand parent for their child from the age of 0-10years. This plan
gives financial protection against death during the duration of the plan
with periodic payments on survival at specified durations.
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5. Child Future Plan: A policy where the future needs like education,
marriage and other requirements are taken care of. This plan provides a
benefit which not only takes care of the risk cover of the child during the
policy but also after 7 years of the policy being expired.

6. Child Career Plan: A plan to meet the educational and other needs of
the child. It provides the risk cover on the life of child during the policy
term as well as 7 years after the policy has expired. There are also
Survival benefits given to the life assured at the end of a specific
duration.

7. Child Fortune Plan: Is a unit linked plan which offers long term
capital appreciation.

8. Marriage Endowment or Educational Annuity Plan: This is an


Endowment Assurance plan that provides for benefits on or from the
selected maturity date to meet the Marriage/Educational expenses of the
named child.

MONEY BACK PLAN

1. Bima Bachat: Is a money-back policy which offers financial security


and assurance to the policy holder and his family. The policy holder has
to pay only one premium.

2. Money Back-20 years: Is an endowment plan where periodic


payments of partial survival benefits are paid during the term of the
policy till the policy holder is alive. As the policy name goes this plan
20% of the sum assured is payable after 5,10,15 years and the balance
40% accrued bonus is payable at the 20th year.
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3. Money Back 25 years: Is the same as the above plan only in this plan

the 40% accrued bonus is payable at the 25th year.

PENSION PLANS
1. New Jeevan Dhara - I: is a Deferred Annuity plans that allows the
policyholder to make provision for regular income after the selected
term.

2. New Jeevan Suraksha - I : Is a deferred annuity plan.

3. Jeevan Nidhi: Is a deferred annuity plan with profits.

4. Jeevan Akshay - VI: By paying a lump sum amount this immediate


annuity plan can be bought.

UNIT PLANS

1. Child Fortune Plus: Is a plan for children and to meet their


educational needs. It’s a unit linked plan with long term capital
appreciation.

2. Fortune Plus : It is a unit linked assurance plan where premium


payment term (PPT) is 5 years and the premium payable in the first year
will be 50% of total premium payable under the policy.

3. Market Plus: Is a unit linked pension plan where after a specific


period the pension is paid.
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4. Money Plus - I: Is a unit linked Endowment plan which has


investment plus insurance during the term and you can pay regular
premiums.

5. Profit Plus : It is a unit linked Endowment plan where the premium


payment term (PPT) is limited to single lump sum, or uniformly over 3, 4
or 5 years.

WHOLE LIFE PLANS


1. Jeevan Anand: Is a combination of two plans- Endowment Assurance
and Whole Life plan.

2. Jeevan Tarang: This is a with-profits whole of life plan which


provides for annual survival benefit at a rate of 5½ % of the Sum Assured
after the chosen Accumulation Period.

3. The Whole Life Policy: Is a plan mainly to provide for payment of


sum assured plus bonuses on the death of the policyholder.

GOLDEN JUBLIEE PLAN


New Bima Gold: Where the premiums are paid back during the policy
term in installments, besides that life insurance cover is given during the
also at the extended term of the plan.

Some main Plans of BSLI:

(1) Birla Sun life insurance Platinum Plus - It is a unit linked, non
participating insurance plan. In this plan, the investment risk is borne by
the policyholder but not if this policy is detained till maturity.
36

Policy parameters

Entry age 18-70

Minimum annual premium Rs. 50000

Minimum sum assured 5*annual premium

Policy term 10 years

Premium paying term 3 years

PREMIUM AND SUM ASSURED

You can pay your policy premium annually, half-yearly, quarterly or


monthly, subject to a minimum installment premium of:

Rs. 50,000 per annum

Rs. 25,000 half-yearly

Rs. 15,000 quarterly; or

Rs. 10,000 per month (3 monthly installments required at issue)

You choose your Sum Assured (minimum 5 x annual premium).

Risk profile

 0-40% in money market & cash

 0-100% in debt instruments & derivatives

 0-100% in equities & equity related securities.


36

Maturity Benefit
On maturity, your Fund Value will be paid to you. In addition, we will
pay an amount equal to:

 The number of units under your policy at that time; times


 The excess, if any, of the Guaranteed Maturity Unit Price over the
then prevailing unit price.

Death Benefit

In the unfortunate event of the death of the life insured prior to the
maturity date of the policy, we will pay to the nominee the greater of
(a) the Fund Value or (b) the Sum Assured reduced for partial
withdrawals as follows:

 Before the life insured attains the age of 60, the Sum Assured
payable on death is reduced by partial withdrawals made in the
preceding two years.
 Once the life insured attains the age of 60, the Sum Assured
payable on death is reduced by all partial withdrawals made
from age 58 onwards.

Partial withdraw

 Partial withdraw after 3 complete policy years.

 Minimum partial withdraw rs.5000


36

Policy surrender

After 3 policy years and you will get 100% fund value at that time.

(2) Birla Sun Life Insurance children’s Dream Plan –

Policy parameters

Life Insured (parent): 18 years – 60 years


Entry Ages
Nominee (child) : 30 days – 13 years

Term 18 years less the age of child at entry

Premium paying Regular policy premiums can be paid yearly,


frequency half-yearly, quarterly or monthly (for ECS only)

Accidental Death & Dismemberment Benefit


Addition of riders
(ADD)

The annual policy premium is based on:

 The guaranteed maturity benefit and option you choose.


 The enhanced sum assured you desire.
 The plan term and your gender and age at entry.

Guaranteed Equals all premiums paid, less charges and guaranteed


Fund Value maturity benefit(s), accumulated at 3% per annum

Partial Allowed after 3 complete policy years


Withdrawals
36

Investment
Protector, Builder, Enhancer
Funds

AT DEATH BENEFIT

The sum assured is paid to the nominee upon the death of the life insured
(parent)
The new life insured is the child and new owner is appointed as per your
wishes.
The policy is continued as usual except.

•All riders and risk charges will cease.

•Only the policy administration charge and fund management charge


continue, and
BSLI will start paying the Maturity Continuation Benefit on a monthly
basis until the policy matures.
In case of death of the new life insured (child) prior to the end of the
Term, higher of 105% of the Fund Value or the Guaranteed Fund Value
will be paid and the policy will be terminated.

Charges of policy

 Premium allocation charges

 Fund management charges


36

 Mortality charges

 Surrender charges etc.


36

(3) Birla Sun Life Insurance Saral Jeevan Plan –

The saral jeevan plan provides the dual benefit of protection and
investment. So it is the ideal policy if you want to secure your life and
build wealth at the same time.

POICY PARAMETERS

Entry age 18-55

Policy term 10, 15, and 20 years

Age at maturity 65 or less

Mode of Premium Payment – Annual, Semi Annual, Quarterly, Monthly.

Maturity Benefit

Maturity benefit will be sum assured plus fund value at the end of
maturity time.

Death Benefit

Your nominee will receive both sum assured and fund value in the
unfortunate event of death.

Investment Funds

 Protector
 Builder
 Enhancer
36

Charges of Policy

 Premium Allocation Charge- Nil (This means all of your policy


premium will be invested in the investment funds of your
choice).
 Fund Management Charge
 Mortality charges
 Surrender charges etc.

(4) Birla Sun Life Universal Health Plan-

The universal health plan is in addition to the benefit amount


payable under each health benefit. This unique benefit helps you and your
family with out of pocket health related expenses.

Policy parameters

18 years – 65 years
Entry Ages

Term 3 years

Premium paying policy premiums can be paid yearly, half-yearly,


frequency quarterly or monthly

According to age of the insured person. (e.g. for


Premium 25 – Rs. 4756 p.a., for 45- Rs. 6725 p.a., for 55-
Rs. 9724 p.a.).

BENEFITS –
36

 BSLI pay a fixed benefit amount of Rs. 1000


per day in Hospital plus Rs. 1000 per day in Intensive Care
Unit (ICU).
 In case of an admission for surgical
management :

 If the surgery is listed in covered surgeries:


BSLI pay a fixed benefit amount based on the grade of the
covered surgery-Rs. 100000, Rs. 50000, Rs. 25000, Rs. 15000
and Rs. 10000 for grade 1(major) to 5(minor) respectively.
 If the surgery is not listed in the covered
surgeries: BSLI pay a fixed benefit amount of Rs. 2000 per
day in hospital plus Rs. 1000 per day in ICU.

Tax benefit

The premium paid by you up to 15000 (Rs.20000 for senior citizens)


p.a. to insure yourself and/or your family, is eligible for tax benefit
under section 80D of the income Tax Act, 1961, which is subject to
amendments from to time.

Death/Maturity benefit

This plan has no death benefit or maturity benefit. Furthermore, this


plan provides for no cash surrender value nor any policy loans.
36

(5) BIRLA SUN LIFE RETIREMENT PLAN

Policy parameters

18 years – 80 years
Entry Ages

Term 3years – 15 years

Premium paying policy premiums can be paid yearly, half-yearly,


frequency quarterly or monthly

Minimum Rs. 9600 p.a.(premium should be


Premium
multiple of Rs. 1200)

Benefits

In the unfortunate event of death of the policyholder the nominee will


receive the higher of:

75% of the base premium and all renewal base premiums paid. OR the
surrender value at the time plus all accumulated survival benefits.

Tax benefits

Under section 80CCC and 10(10A)

Partially withdraw

You can do partially withdraw min. Rs.5000


36

SOME MAIN PLANS OF LIC

(1) Marriage Endowment Or Educational Annuity Plan : This is an


Endowment Assurance plan that provides for benefits on or from the
selected maturity date to meet the Marriage/Educational expenses of the named child.

Entry age 18 (min.) 60(max)

Sum assured 50000 (min) no limit (max)

Term 5 (min) 25 (max)

Mode of payment monthly, qtly, half yearly, Yearly.

FEATURES

The Marriage Endowment/ Educational annuity plan provides a sum


assured to be kept aside for the expenses of marriage or higher education
of the policyholder's children. Premiums payable for selected term or till
death of the life Assured. Benefits will be given only after the selected
term.

MATURITY BENEFITS

Sum Assured + Bonus

Accident:

Accident benefit equivalent to basic sum assured would be available by


paying appropriate additional premiums in that behalf. An amount
equivalent to Sum Assured become payable immediately.

2) Jeevan Saral plan of LIC


36

Plan Details: This plan is appropriate for employees seeking life cover
through Salary Savings Schemes.

Eligibility:

 Particulars Minimum Maximum

Age 12 Yrs (completed) 60 Nearest Birthday

Term 10 35

Age at
Maximum 70 years
maturity

In case of term rider, minimum and maximum age of entry will be 18 and
50 years respectively. Further minimum sum assured will be Rs.1 lakh.

Premium:
Minimum premium: Rs 250 per month for entry age up to 49 years and
Rs.400 per month for entry age 50 years and above. The premium shall
be in multiple of Rs.50 per month.

Premium Mode:

Yearly, Half yearly, Quarterly and Monthly under Salary Saving Scheme.

Survival Benefits:

The sum payable at maturity however differs for different entry ages and
terms. On Maturity the individual will receive maturity sum assured, plus
Loyalty additions, if any.
The specimen Maturity Sums Assured (MSAs) per Rs.100/- monthly
premium are given below for some of the ages and terms:
36

Age at
Policy Term
Entry

  10 yrs 15 yrs 20 yrs 25 yrs

20 11,156 19,628 28,039 36,839

40 10,431 17,839 24,598 30,854

50 8,442 13,444 16,164  

Death Benefits:

Under this plan death cover will be same irrespective of age at entry and
term. On death the nominee will receive 250 times the monthly premium,
plus return of premiums excluding extra/rider premium.

3) New Jeevan Suraksha Plan

This pension plan is a vehicle for planning a life long pension and is also
tax deferred. Not only can you plan a pension for life with the help of
these annuities but these schemes also help you reduce your tax liability.

POLICY PARAMETERS

Particulars Min Max


36

Entry Age 18 70

vesting age 50 79

Deferment period 2 years 35 years.

Premium Rs. 250 p.m.

Yearly, half yearly,


Mode of payment
quarterly, monthly

FEATURES
36

(Amount in RS)

>=1,00,000 < >=2,00,000 <


Particulars >= 5,00,000
2,00,000 5,00,000

Rebates
Available for 3% 4% 5%
Single Premium

Rebates
Available for 6% 7% 8%
Annual Premium

DEATH BENEFITS

If death occurs within 10 years - 3% (interest on all premium


given)

Between 11 to 20 years 4%

After 20 years 5%

(4) LIC'S MARKET PLUS PLAN


36

It is a unit linked deferred pension plan. The policyholder can


choose the plan with or without risk cover. He can also choose the level
of cover within the limits, which will depend on the mode and amount of
premium he/she desires to pay. The allocated premium will be utilized to
buy units as per the selected fund type.

The Policyholder's Unit Account will be subject to deduction of


charges. Units will be allotted and cancelled based on the Net Asset
Value (NAV) of the respective fund of the date of allotment /
cancellation. There is no Bid-Offer spread (both the Bid price and Offer
price of units will be equal to the NAV). The NAV will be declared on a
daily basis and will be based on the investment performance, Fund
Management Charges (FMC) and whether fund is expanding or
contracting under each fund type.

POLICY PARAMETERS

Entry age 18-70

Premium (Min) Rs. 5,000 p.a. for Regular premium and Rs.
10,000 for Single premium

(Max) No limit

Vesting age 40-75

Sum Assured (min) NIL- (when no life cover is opted) Rs. 25,000 for
Single premium, Rs. 50,000 for Regular premium (When life cover is
opted), (Max) Regular Premium - 20 times of the annualized premium.

Minimum Deferment period 5 years

INVESTMENT FUND TYPES:


36

Investment in
Short-term investments
Govt. / Govt. Investment
such as money market
Guaranteed in Listed
Fund Type instruments(Including
Securities / Equity
Govt. Securities &
Corporate Shares
Corporate Debt)
Debt

Not less than


Bond Fund 100% NIL
80%

Not less than


Not less than 15% and not
Secured Fund Not more than 85%
65% more than
35%

Not less than


Balanced Not less than 30% and not
Not more than 70%
Fund 50% more than
50%

Not less than


Not less than 60% and not
Growth Fund Not more than 40%
20% more than
80%

Comparison between some main products of BSLI and LIC

1) Comparison between BSLI’s Children dream plan and LIC’s


Marriage Endowment or Educational Annuity Plan:
 In BSLI plan policy term is 18 years less the age of child at entry.
36

 But in LIC plan policy term is 5-25 years.


 Premium paying frequency is almost same i.e. yearly , half yearly,
quarterly, monthly.

 In case of death benefit: in BSLI plan the sum assured is paid to the
nominee upon the death of the life insured (parent). The new life
insured is the child and new owner is appointed as per your wishes.
In LIC plan if death occurs due to accident then basic sum assured is
payable on death immediately and further premiums are not payable.
After expiry of the term again basic sum assured + bonus is payable.

 In BSLI fund value is guaranteed.


 In LIC plan fund value is not guaranteed.

2) Comparison between BSLI’s Saral jeevan plan and LIC’s Jeevan


saral plan

 In BSLI plan entry age is 18-55 years


In LIC plan entry age is 12-60 years

 In BSLI policy term is 10, 15, and 20 years.


In LIC policy term is 10-35 years.

 In BSLI plan max. Maturity age is 65 years


In LIC plan max. Maturity age is 70 years.

 In BSLI min. premium is 10000 p.a.


In LIC plan min. premium is 5000p.a.

3) Comparison between BSLI’s Retirement plan and LIC’s New


Jeevan Suraksha plan.

 In BSLI plan entry age is 18-80 years


36

In LIC plan entry age is 18-70 yrs.

 In BSLI plan vesting age is 10-40 yrs from entry age (Max. 90yrs.)
In LIC plan vesting age is 50-79 yrs.

 In BSLI plan min. premium is 9600 p.a.


In LIC plan min. premium is 3000 p.a.

 Premium paying frequency is same i.e. yearly, half yearly,


quarterly, and monthly

DEATH BENEFITS:

In BSLI plan the unfortunate event of death of the policyholder the


nominee will receive the higher of:

75% of the base premium and all renewal base premiums paid. OR
the surrender value at the time plus all accumulated survival
benefits.

In LIC plan

If death occurs within 10 years - 3% (interest on all premium


given)

Between 11 to 20 years 4%

After 20 years 5%
36

4) Comparison between BSLI Platinum plus plan and LIC


Market plus plan
 Entry age in BSLI and LIC is same i.e. 18-70
years.

 In BSLI min. annual premium is 50000p.a.

 In LIC plan premium is 10000p.a

 In BSLI plan maturity benefit is guaranteed

 In LIC plan maturity benefit is not guaranteed

SCOPE OF THE STUDY


36

The liberalization of the Indian insurance sector has been the


subject of much heated debate for some years. Despite innumerable
delays the sector has been finally opened to the private players. The key
issue and possible trends are as follows:

 The threat of new players taking over the market has been
overplayed.

 Nationalized players will continue to hold strong market share


positions, but they will be enough business for new products, better
packaging and improved customer service.

 Both new and existing players must explore new distribution and
marketing channels.

 A middle market approach tapping segments and niches thar are


currently under served will profitable for new entrants.

OBJECTIVES OF THE STUDY


36

Primary objective:

 To determine and analyze the Market Potential of the Birla Sun


Life Insurance Company.

Secondary objectives:

 To study and determine the competitor (LIC) position in the


market.

 To analyze market share of Birla Sun Life Insurance products.

 To analyze the customer satisfaction regarding LIC and BSLI.

 To compare the companies using percentage analysis method.

 To suggest the best policy in BSLI and LIC


36

LIMITATIONS

 There are chances of biased information provided by the

respondents.

 Many of the respondents were willing to give their time


and genuine answer

 As the sample size is small compared to the total


population, therefore there can’t be full accurate.

 The time and area was limited.


36

SWOT ANALYSIS OF BSLI

STRENGTH:

 Multi-channel distribution and one of the largest


distribution networks in India.
 1 Million Policies sold within 3 and half years.

 Training process of the company is very strong.

 According to the change in surrounding environment


like changes in customer requirement.

WEAKNESS:

 Company does not penetrate on the rural market at a


time.
 There is no plan for the low income group.

 Fees for the advisor is high than the other companies.

OPPORTUNITY:

 Insurance market is very big, where company can expand


its business easily.
 It has many ULIP plans so it can grow in near future.

THREATS:
36

 ‘OLD HABITS DIE HARD’: Its still difficult task to win the
confidence of public towards private company.
 The company is facing major threats from LIC etc. -
which is an government company.

 Plans for all income groups are not available which can create
adverse effect later on the market share of the company.

REVIEW OF LITERATUE

A key motivation in taking out of life insurance cover is the


protection of one spouse and children. There are many plans that
are available for parents. Where the benefits pass on to the children
in case of the death of the parent.

Life plans have been vogue in our country for a long period.
Life insurance policy on the life of female child may have a
provision of extending life assures cover on the life of the husband
after her marriage. The parents can take the policy and pay
premium regularly. The advantages of life plan are

 Low premium even after the risk cover starts on the


life .
 With premium waiver benefit, the premiums are
waived in case of death of proposer.

 Income tax benefit is available in case of insurance.


36

Since the child is a minor, the father or mother becomes the


proposer and there is a provision for automatic vesting of the policy of
the policy on the vesting date when the attains the age of majority.

RESEARCH METHODOLOGY-

MEANING OF RESEARCH-

Before understanding Research Methodology, we should


understand the meaning of research. Research in common parlance refers
to a search for knowledge. One can also define Research as a scientific
and systematic search for pertinence information on a specific topic. In
fact, research is an art of scientific investigation.

DEFINITION OF RESEARCH-

“Research is a systematized effort to gain new knowledge”

MEANING OF RESEARCH METHODOLOGY-

Research Methodology, it is a way to systematically solve the


research Problem. It may be understood as a science of studying how
research is done scientifically. In it we study the various steps that are
generally adopted by the researcher in studying his research problem
36

along with the logic behind them. It is necessary for the researcher to
know not only the research.

Data Collection: -

The objectives of the project are such that both primary and
secondary data is required to achieve them. So both primary and
secondary data was used for the project. The mode of collecting primary
data is questionnaire mode and sources of secondary data are various
magazines, books, newspapers, & websites etc.

Primary data

The primary data are those data which are collected afresh and for
the first time, and thus happen to be original in character.

Secondary data

The secondary data on the other hand, are those which have
already been collected by someone else and which have already been
passing through the statistical process.

Sample size –

100 people of City were selected

Research

This research design used Purposive research

Statistical Tools

Percentage method:
36

(Number of Respondents / Total number of Respondents)*100

Ranking method:

Factors = Total value/ Number of respondents

DATA ANALYSIS AND INTERPRETATION

1) Do you think that investment in Insurance sector is good


option?

TABLE7.1.1

Particulars Number of Percentage


respondents (%)

Yes 90 90%

No 10 10%

Total number of 100 100%


respondents
36

INFERENCE

90% people say that investment in insurance sector is good option and
10% are saying not.

INVESTMENT IN INSURANCE SECTOR:

CHART7.1.1
36

2) Which company’s policy do you have?

TABLE7.1.2

Particulars Number of Percentage


respondents

BSLI 40 40%

LIC 60 60%

Total number of 100 100%


respondents

INFERENCE
36

40% people have BSLI policies and 60% have LIC

PREFRENCE OF COMPANY POLICIES:

CHART7.1.2
36

70

60

50
number of respondents

40 BSLI
30 LIC

20

10

0
BSLI LIC
company name

3) Customer level of importance with reference to the plans given in


the company using ranking methodology.
TABLE7.1.3
36

Particular 5 4 3 2 1

Excellent Very Good Poor Very


good poor

Whole life plan 50 30 20 08 02

Retirement plan 40 25 15 15 05

Children plan 70 20 05 03 02

Health plan 10 05 25 20 40

Golden jubilee 10 15 05 20 50
plan

INFERENCE

Most of the people give importance for the children’s plan and they did
give the importance to golden jubilee plan.

CUSTOMER LEVEL OF IMPORTANCE:

CHART7.1.3
36

4) What percentage of interest you get from it?

TABLE7.1.4
36

Particulars Number of Number of


respondents respondents
LIC BSLI

Below 5 % 0 0

5-8 % 14 6

8-12 % 42 28

Above12 % 4 6

TOTAL NUMBER OF 60 40
RESPONDENTS

INFERENCE

14% people of LIC and 6% of Birla are getting 5-8% R.O.I., 42% people
of LIC and 28 of Birla are getting 8-12% interest.

PERCENTAGE OF INTEREST

CHART7.1.4
36

5) Why do you invest in this (LIC/BSLI) company?

TABLE7.1.5
36

Particulars Number of Number of


respondents respondents
LIC BSLI

High interest 8 12

Good image of CO. 12 4

Growth of the CO. 18 12

Annual premium is 10 4
reasonable

Maturity benefits 12 8

TOTAL NUMBER OF 60 40
RESPONDENTS

INFERENCE

12% people of Birla are investing in this company due to its high interest,
18% people of LIC say that they are investing in LIC due to growth of the
company.

BENEFITS TO INVEST IN LIC AND BSLI :

CHART7.1.5
36

6) Do you think that investment in BSLI is better than LIC?

TABLE7.1.6
36

Particulars Number of respondents

Yes 44

No 56

Total number of respondents 100

INFERENCE

44% people are saying that investment in BSLI is better than LIC, but
56% are saying no.

BETTER INVESTMENT:

CHART7.1.6
36

7) Reason for investing in BSLI

TABLE7.1.7
36

Particulars Number of respondents

Guaranteed F.V. at maturity 10

Growth rate 16

More ULIP plan 8

Risk covered 4

All above 6

TOTAL NUMBER OF 44
RESPONDENTS

INFERENCE

16% people are saying that because BSLI gives guaranteed F.V. at
maturity time, 8% people are saying it has more ULIP plans.

REASON FOR INVESTING IN BSLI:

CHART7.1.7
36

No. of respondents

6 Guaranteed F.V. at
10 maturity
Growth rate
4

More ULIP plan

Risk covered
8

All above
16

8) Reason for investing in LIC

TABLE7.1.8
36

Particulars Number of respondents

LIC have govt. stake 24

Brand loyalty of LIC 14

Low A.P. than BSLI 12

High return 6

TOTAL NUMBER OF 56
RESPONDENTS

INFERENCE

24% people are saying that investment in LIC is better it has govt. stake,
14% are saying it has brand loyalty

REASON FOR INVESTING IN LIC:

CHART7.1.8
36

High return, 6

Low A.P. than LIC have govt. LIC have govt. stake
BSLI, 12 stake, 24 Brand loyalty of LIC
Low A.P. than BSLI
High return

Brand loyalty of
LIC, 14

9) When company launch new product, then any information is given


to you about that product?
36

TABLE7.1.9

Particulars Number of respondents Number of respondents


LIC BSLI

Yes 24 16

No 36 24

Total number of 60 40
respondents

INFERENCE

24% people of LIC are saying yes and 36% are saying no, 16% people of
BSLI are saying yes and 24% people are saying no about providing
information

INFORMATION ABOUT THE NEW PRODUCT WEATHER


INFORMED
36

CHART7.1.9

40
35
30
25
NUMBER OF
20
RESPONDENTS Yes
15
No
10
5 No
0
Yes
LIC
BSLI
COMPANY NAME

10) In near future, do you think BSLI will have high growth rate?

TABLE7.1.10
36

Particulars Number of respondents

Agree 20

Neutral 26

Disagree 14

Can’t say 40

Total number of respondents 100

INFERENCE

20% people are saying that BSLI will grow in future, 26% people are
saying it will be neutral, 40% can’t say, and 14% are disagreeing.

GROWTH RATE OF BSLI

CHART7.1.10
36

40
35
30
25
NUMBER OF
20
RESPONDENTS
15 Series1

10
5
0
Agree Neutral Disagree Can’t say
OPTIONS

Ranking method
36

Customer level of importance with reference to the plans given in the


company using ranking methodology.

Calculation:
TABLE7.1.11

Particular 5 4 3 2 1

Excellent Very good Good Poor Very poor

Whole life plan 50 30 20 08 02

Retirement plan 40 25 15 15 05

Children plan 70 20 05 03 02

Health plan 10 05 25 20 40

Golden jubilee 10 15 05 20 50
plan
36

WHOLE LIFE PLAN

Rank Score No. of respondent Total

1 5 50 250

2 4 30 120

3 3 20 60

4 2 08 18

5 1 02 02

Total 100 450

Factors = Total value / no of respondents

=450/100

=4.5
36

RETIREMENT PLAN

Ran Score No. of respondent Total


k

1 5 40 200

2 4 25 100

3 3 15 45

4 2 15 30

5 1 05 05

Total 100 380

Factors = Total value / no of respondents

=380/100

=3.8
36

CHILDREN PLAN

Ran Score No. of respondent Total


k

1 5 70 350

2 4 20 80

3 3 05 15

4 2 03 06

5 1 02 02

Total 100 453

Factors = Total value / no of respondents

=453/100

=4.53
36

HEALTH PLAN

Ran Score No. of respondent Total


k

1 5 10 50

2 4 05 20

3 3 25 75

4 2 20 40

5 1 40 40

Total 100 225

Factors = Total value / no of respondents

=225/100

=2.25
36

GOLDEN JUBILEE PLAN

Ran Score No. of respondent Total


k

1 5 10 50

2 4 15 60

3 3 05 50

4 2 20 40

5 1 50 50

Total 100 215

Factors = Total value / no of respondents

=215/100

=2.15
36

Result:

Rank Name of Plans

I Children plan

II Whole life plan

III Retirement plan

IV Health plan

V Golden jubilee plan


36

Percentage Analysis Method

It refers to a special kind of ratio. This is used for making


comparison between two or more series of the Data. It is denoted by
percentage (%) .

Percentage Analysis = Number of Respondents___ *100

Total Number of Respondents

1) Investment in Insurance sector is good option?

Yes = 90/100*100

= 90%

NO = 10/100*100

= 10%
36

2) Which company’s policy do you have?

LIC = 60/100*100

= 60%

BSLI = 40/100*100

= 40 %
36

. FINDINGS

 90% people saying that investment in insurance sector is good


option and 10% are saying no.

 40% people have BSLI policies and 60% have of LIC.

 Majority of the persons taking children’s plan.

 56% people are saying that investment in LIC is better than BSLI,
44% are saying investment in BSLI is better.

 Most of the people of both LIC and BSLI are getting rate of
interest 8-12%

 Most of the people have children plan of BSLI.

 Most of the people invest due to high interest of the policy in BSLI

 People have more faith in govt. Companies than the private.

 14% people invest in LIC due to its brand loyalty.

 26% people saying that BSLI growth will be neutral in near future.
36

SUGGESTIONS

 Information regarding new product should be provided to the


customers.

 The company should find out the number of people who are not
having any of the insurance plans through an intensive market
research and motivate them to get insured.

 At some level Company should provide information to the


customers about the charges of the policy.
[

 Company should target each and every class of the society.

 The Charges should be relatively low of the policies.

 Annual premium should be reasonable.


36

CONCLUSION

Here in this study we see that people have more policies of LIC in
comparison to BSLI. People have more faith in govt. companies than
private. So it is necessary for private companies. That they should give
more attention to that points or that areas where it lacks for further future
growth. Insurance sector is very wide and co. can grow in future.
36

BIBLIOGRAPHY

 www.birlasunlife.com

 www.licindia.com

 www.google.com

 Newspapers

 www.irda.com

Reference Books:

 Kothari. C.R. (2002), “RESEARCH METHODOLOGY”,


Vishwa Publication. New Delhi.
36

ANNEXURE

 NOTE: The information that you will provide will be kept


confidential and will be used only for academic Purpose.
 Our questionnaire will be to those persons who have plans of BSLI
or LIC.

GENERAL

 Name
______________________________________________________
 Address_______________________________________________
____________________________________________________
 Gender_________Age ______
 Contact No. _________________________

1. Do you think that investment in insurance sector is good option?

(a) Yes (b) No

2. Which company’s policy do you have?

(a) Birla Sun Life Insurance (b) LIC

3. Which of the following plans are mostly preferred by customers?

(a)Whole Life Plan (b) Retirement Plan (c) Children Plan


(d) Health Plan (e) Golden jubilee plan
36

4. Are you satisfied with the Whole Life Plan?

(a)Excellent (b) Very good (c) Good (d) poor (e) Very
poor

5. How far the retirement plan useful

(a)Excellent (b) Very good (c) Good (d) poor (e) Very
poor

6. Is the children plan effective?

(a)Excellent (b) Very good (c) Good (d) poor (e) Very
poor

7. How do you rate the health plan?

(a)Excellent (b) Very good (c) Good (d) poor (e) Very
poor

8. If the golden jubilee plan effective for you

(a)Excellent (b) Very good (c) Good (d) poor (e) Very
poor

9. What percentage of interest you get from it?

(a) Below 5% (b) 5-8% (c) 8-12% (d) Above 12%

10. Why do you invest in this company?

(a) High interest (b) good image (c) Company growth

(d) Annual premium is reasonable (e) due to maturity benefits

(f) Any other please specify ______________________________


36

11. Do you think that investment in BSLI is better than LIC?

(a) Yes (b) No

(If your answer is no then jump to question no. 8)

12. If yes then why?

(a) Because BSLI gives guaranteed fund value at maturity time

(b) Growth rate of company is high

(c) BSLI has more ULIP plans than LIC

(d) Risk factor is covered properly

(e) All above

13 If not, then why?

(a) Because LIC is having government stake.

(b) Brand loyalty of LIC

(c) It has low premium plans than BSLI

(d) Investment return is higher than BSLI

(e) Any other (please specify)____________________

14. Whenever company launch new product, then any information is


given to you about that product?

(a) Yes (b) No


36

15. In near future BSLI is having high growth rate.

(a) Agree (b) neutral (c) disagree (d) can’t say

Any suggestions __________________________________

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