BONOFIDE CERTIFICATE HOLY CROSS COLLEGE BHARATHIDASAN UNIVERSITY TRICHURAPALI

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CONTENTS

CHAPTER I. II. III. IV.

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V.

INTRODUCTION AND RESEARCH DESIGN INSURANCE-AN OVERVIEW COMPANY PROFILE FINANCIAL PERFORMANCE OF BIRLA SUN LIFE INSURANCE COMPANY INDIA PVT. LTD., SUMMARY OF FINDINGS AND CONCLUSIONS BIBLIOGRAPHY

I. INTRODUCTION AND RESEARCH DESIGN 1.1 INTRODUCTION 1.2 STATEMENT OF THE PROBLEM 1.3 REVIEW OF LITERATURE 1.4 SCOPE OF THE STUDY 1.5 OBJECTIVES OF THE STUDY 1.6 COLLECTION DATA 1.7 PERIOD OF STUDY 1.8 TOOLS FOR ANALYSIS 1.9 CHAPTER SCHEME

CHAPTER-1 INTRODUCTION AND RESEARCH DESIGN 1.1 INTRODUCTION: The dictionary meaning for the word insurance is system of safeguarding against loss, sickness, death and the like Insurance is a form of contract or agreement under which one party agrees in return of a consideration to pay an agreed amount of money to another party to make good for a loss, damage injury to something of value in which the insured has a pecuniary interest as a result of some uncertain event. Life is uncertain. It is not known how long one can live. Every person knows that his family life depends on income. Inherited wealth is not sufficient to carry on. Earning will certainly cease at some time or other and life insurance can provide immediate income if one dies. One therefore desires to make provisions for his dependents by taking life assurance. One is always worried that his

dependents will be in financial difficulties if he dies without making any provisions for the dependents. His family therefore needs security and this economic need is the base of life assurance. In life assurance risk is shared by many in payment of small contribution called premium for economic security. Risk as death for all individuals is not uniform. It differs from person to person depending on his age, health, personal history, family history, habits and the like. Since the premium depends on the risk involved people with difficult degrees of risks will have to pay different amounts or premiums. Life insurance made its presence in India well over 100 years age. Today it is widely accepted as the most attractive financial instruments in an individual s portfolio and it provides an assurance of security with attractive returns. Today life insurance is universally acknowledged to be an institution which claimants risk substituting certainly and

comes to the timely aid of the family on the unfortunate event of the death of the breadwinner.

1.2 STATEMENT OF THE PROBLEM: Insurance is playing a vital role in the effective mobilization of funds from public in the way of premium and to settle that fund for their insurers in the form of claims. Insurance companies largely depend upon their customers money. Banks and financial institution would advance loans on property unless it is insured against loss are damage by insurable perils, Indian insurers operate in more than 30 countries through agencies, branches and subsidiary/associate companies. These operations earn foreign exchange and represent invisible exports.

PROBLEM FACED BY THE INSURANCE SECTION SECTOR a) Shrink in Business Insurance sector will definitely reduce the LIC S market share. b) Technology up gradation Providing services with speed and accuracy can be achieved only by keeping pace with the past changing technology. c) Create awareness The present level of low market penetration is primarily on account of such awareness in the society. d)Quick Settlemant of claims The track record of the LIC in this respect has not been satisfactory and there are companies of undue delay and unnecessary formalities in the settlement of claims. e) Revision of the products

One of the often-repeated criticisms against the LIC has been that the standardization products being marketed are not consumer friendly. f) Entry barrier Though IRDA bill provides for entry of the foreign insurer, there appears hardly any indication of any interest by international insurers for starting of life insurance business in India. g) Reduction of the agent Another problem is faced by the LIC is that is a possibility of reduction of number of LIC agents.

1.3 REVIEW OF LITERATURE A brief discussion of past studies relating to the private insurance companies is presented here. The studies consist of materials from various agencies and the academic communities. Suman saha in his study analyzed the current market share of Birla Sun Life Insurance Company in the area of the various ways to improve the current market share

and to know the requirement of people regarding life insurance. It has been found out that Birla Sun Life market share is higher but the private life insurance company market share is increasing. The company should focus on rural market. One can see there were several gaps in terms of tapping the rural market in the past, which has been reconsidered by the private insurance companies as a key for success. Apart from that there has been a lot of innovation in the flexibility of the product portfolio, industrial options and stress on relationship marketing, which will definitely help in the growth of the insurance industry and Indian economy as a whole.

1.4 SCOPE OF THE STUDY The present study makes one to have an insight about financial status and effective utilization of funds in the Birla Sun Life Insurance Company India Pvt. Ltd. This study is totally to the present day s problem pertaining to insurance companies. An attempt has been made to use the various analysis and interpretation for the above

problems. This study also helps to suggest necessary remedial measures to have effective utilization of funds.

1.5 OBJECTIVES OF THE STUDY The major objective of study of the are as follows: a) To study the new entrants of life insurance as well as general insurance companies. b) To trace the origin, growth and development of the Birla Sun Life insurance company India Pvt. Ltd. c) To know the different schemes of the Birla Sun Life insurance company India Pvt. Ltd. d) To analyze the financial performance of the Birla life insurance company India Pvt. Ltd. e) To offer summary of findings and conclusions based on the performance of the Birla life insurance company India Pvt. Ltd. 1.6 COLLECTION OF DATA The present study is mainly based on secondary data. The required data were collected from books, journals, magazines, articles and various websites.

1.7 PERIOD OF THE STUDY The present study covers a period of five years from 2007, 2008, 2009, 2010, 2011 1.8 TOOLS FOR ANALYSIS The collection of secondary data were analyzed by using comparative Balance Sheet statement, Common Size Balance Sheet Statement, Trend analysis and Ratio analysis. 1.9 CHAPTER SCHEME

The entire report is organized and presented in five chapters The first chapter presents the introduction and research design. It also contains statement of problem, scope and objective of study, period of study, collection of data and tools for analysis and review of previous study. The second chapter highlights the general terms, functions and types of insurance, insurance in india, history of the insurance sectors, life insurance in

India, general insurance business in India and insurance sector reforms IRDA. Regulations, New entrants and health insurance in India. In the third chapter a detailed description of the company is given. The fourth chapter gives a crystal clear paicture of the financial performance of Birla sun life insurance company Pvt. Ltd. The fifth chapter presents the summary and conclusion of the study.