Final Project
Final Project
Final Project
INTRODUCTION
INSURANCE
Life insurance
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.
36
Working of Insurance
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.
TATA AIG The TATA Group and American International Group Inc
together formed Tata AIG Life Insurance Co. Ltd.Tata Group holds 74%
36
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.
COMPANY PROFILE
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
• 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.
Board of Directors:
Mr. C. Parthasarathy
Mr. M. Yugandhar
Managing Director
Mr. M S. Ramakrishna
Director
Director
CEO
IMPORTANT CLINTELE
Reliance Industries
IDBI
Hindustan Lever
36
Marico Industries
Patni Computers
Morgan Stanley
ACHIEVEMENTS
o A Category-I-Merchant banker
PRODUCTS PROFILE
1. Stock Broking
2. Mutual Fund Services
3. De-mat account opening
4. Depositary participants Services(TIN/PAN)
36
Non life
8. IT Enabled Services
9. Registrars and Transfer agents.
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.
ACHIEVEMENTS OF BSLI
1st to introduce “Free Look Period” and the same was made
mandatory by IRDA for all other Life Insurance Companies.
36
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
36
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.
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.
36
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.
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.
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.
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.
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.
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.
CHILDREN PLANS
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.
3. Money Back 25 years: Is the same as the above plan only in this plan
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.
UNIT PLANS
(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
Risk profile
Maturity Benefit
On maturity, your Fund Value will be paid to you. In addition, we will
pay an amount equal to:
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
Policy surrender
After 3 policy years and you will get 100% fund value at that time.
Policy parameters
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.
Charges of policy
Mortality charges
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
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
Policy parameters
18 years – 65 years
Entry Ages
Term 3 years
BENEFITS –
36
Tax benefit
Death/Maturity benefit
Policy parameters
18 years – 80 years
Entry Ages
Benefits
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
Partially withdraw
FEATURES
MATURITY BENEFITS
Accident:
Plan Details: This plan is appropriate for employees seeking life cover
through Salary Savings Schemes.
Eligibility:
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
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.
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
Entry Age 18 70
vesting age 50 79
FEATURES
36
(Amount in RS)
Rebates
Available for 3% 4% 5%
Single Premium
Rebates
Available for 6% 7% 8%
Annual Premium
DEATH BENEFITS
Between 11 to 20 years 4%
After 20 years 5%
POLICY PARAMETERS
Premium (Min) Rs. 5,000 p.a. for Regular premium and Rs.
10,000 for Single premium
(Max) No limit
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.
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
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 plan vesting age is 10-40 yrs from entry age (Max. 90yrs.)
In LIC plan vesting age is 50-79 yrs.
DEATH BENEFITS:
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
Between 11 to 20 years 4%
After 20 years 5%
36
The threat of new players taking over the market has been
overplayed.
Both new and existing players must explore new distribution and
marketing channels.
Primary objective:
Secondary objectives:
LIMITATIONS
respondents.
STRENGTH:
WEAKNESS:
OPPORTUNITY:
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
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
RESEARCH METHODOLOGY-
MEANING OF RESEARCH-
DEFINITION OF RESEARCH-
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 –
Research
Statistical Tools
Percentage method:
36
Ranking method:
TABLE7.1.1
Yes 90 90%
No 10 10%
INFERENCE
90% people say that investment in insurance sector is good option and
10% are saying not.
CHART7.1.1
36
TABLE7.1.2
BSLI 40 40%
LIC 60 60%
INFERENCE
36
CHART7.1.2
36
70
60
50
number of respondents
40 BSLI
30 LIC
20
10
0
BSLI LIC
company name
Particular 5 4 3 2 1
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.
CHART7.1.3
36
TABLE7.1.4
36
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
TABLE7.1.5
36
High interest 8 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.
CHART7.1.5
36
TABLE7.1.6
36
Yes 44
No 56
INFERENCE
44% people are saying that investment in BSLI is better than LIC, but
56% are saying no.
BETTER INVESTMENT:
CHART7.1.6
36
TABLE7.1.7
36
Growth rate 16
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.
CHART7.1.7
36
No. of respondents
6 Guaranteed F.V. at
10 maturity
Growth rate
4
Risk covered
8
All above
16
TABLE7.1.8
36
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
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
TABLE7.1.9
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
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
Agree 20
Neutral 26
Disagree 14
Can’t say 40
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.
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
Calculation:
TABLE7.1.11
Particular 5 4 3 2 1
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
1 5 50 250
2 4 30 120
3 3 20 60
4 2 08 18
5 1 02 02
=450/100
=4.5
36
RETIREMENT PLAN
1 5 40 200
2 4 25 100
3 3 15 45
4 2 15 30
5 1 05 05
=380/100
=3.8
36
CHILDREN PLAN
1 5 70 350
2 4 20 80
3 3 05 15
4 2 03 06
5 1 02 02
=453/100
=4.53
36
HEALTH PLAN
1 5 10 50
2 4 05 20
3 3 25 75
4 2 20 40
5 1 40 40
=225/100
=2.25
36
1 5 10 50
2 4 15 60
3 3 05 50
4 2 20 40
5 1 50 50
=215/100
=2.15
36
Result:
I Children plan
IV Health plan
Yes = 90/100*100
= 90%
NO = 10/100*100
= 10%
36
LIC = 60/100*100
= 60%
BSLI = 40/100*100
= 40 %
36
. FINDINGS
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 invest due to high interest of the policy in BSLI
26% people saying that BSLI growth will be neutral in near future.
36
SUGGESTIONS
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.
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:
ANNEXURE
GENERAL
Name
______________________________________________________
Address_______________________________________________
____________________________________________________
Gender_________Age ______
Contact No. _________________________
(a)Excellent (b) Very good (c) Good (d) poor (e) Very
poor
(a)Excellent (b) Very good (c) Good (d) poor (e) Very
poor
(a)Excellent (b) Very good (c) Good (d) poor (e) Very
poor
(a)Excellent (b) Very good (c) Good (d) poor (e) Very
poor
(a)Excellent (b) Very good (c) Good (d) poor (e) Very
poor