INTRODUCTION

BIRLA SUN LIFE INSURANCE

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya
BirlaGroup and Sun Life Financial Inc., a leading international financial services
organization. Thelocal knowledge of the Aditya Birla Group combined with the expertise
of Sun Life FinancialInc., offers a formidable value proposition to customers. Sun Life
Financial and its partnerstoday have operations in key markets worldwide, including
India, Canada, the United States, theUnited Kingdom, Hong Kong, Philippines, Japan,
Indonesia, China and Bermuda. Sun LifeFinancial Inc. had assets under management of
over US$ 386.82 billion, as on 31 March 2007.Sun Life Financial Inc. is a leading
performer in the life insurance market in Canada.BSLI in its five successful years of
operations has contributed significantly to the growth anddevelopment of the life
insurance industry in India. It pioneered the launch of Unit Linked LifeInsurance plans
amongst the private players in India. It was the first player in the industry to sellits
policies through the Bank assurance route and through the internet. It was also the first
privatesector player to introduce a pure term plan in the Indian market. This was
supported by sales practices, which brought a degree of transparency that was entirely
new to the market. The process of getting sales illustrations signed by customers, offering
a free look period on all policies, which are now industry standards were introduced by
BSLI.Being a customer centric company, BSLI has invested heavily in technology to
build world class processing capabilities. BSLI has covered more than one and a half
million lives since inceptionand its customer base is spread across 100 cities in India. All
this has assisted the company incementing its place amongst the leaders in the industry in
terms of new business premiumincome. Birla Sun Life Insurance (BSLI), one of the
leading private life insurers in India todayannounced the inimitable achiever, cricketer
Kapil Dev as their corporate brand ambassador. Thecricketing supreme will be endorsing
BSLI in all its marketing initiatives. Birla Sun LifeInsurance is a value-driven brand
which has a national brand recall of 70 per- cent. The objectiveof appointing a brand
ambassador is to grow its brand recall as it goes national in its distributionreach and fuel
business growth. As a brand ambassador, Kapil Dev will play a key role in the brand and
product marketing and promotional activities. BSLI has always used an
integratedmarketing approach, which will be strengthened further.2

Commenting on the association with Kapil Dev, Mr. S. K. Mitra, Director, Financial
Services,Aditya Birla Group and currently in charge of BSLI expressed, "The Birla Sun

Life Insurance business distribution network is national in nature covering more than
1000 points across thecountry .We have made our entry in several tier I and tier II towns.
It is therefore very importantfor the brand to connect at the grass root level and create
trust. We believe that our associationwith Kapil Dev as our brand ambassador will help us
create this connects in a shorter period of time. We therefore now have two strong
connects our parent brand Birla and our brandAmbassador Kapil Dev".Kapil Dev, also
known as the Haryana Hurricane, was born on 6 January 1959 in Chandigarh.He played
his first competitive game of cricket at the age of 13 years and made his test debut on16
October 1978 at Faisalabad against Pakistan. Kapil Dev remained India's top strike
bowler for almost 15 years. His extraordinary test match figures of more than 5000 runs
and 434 wicketsalong with 64 catches show that he was a world class cricketer and an allrounder. He has raisedthe mantle of India to sporting glory by winning us the World
Cup.In a study conducted by BSLI, Kapil Dev connected extremely well with the life
insurancecategory and had high acceptance by the masses. Our survey suggests that he is
seen as a verygood fit for the BSLI brand. He is very much loved and respected by a vast
majority of the population.On 26 November 2006, Birla Sun Life hosted the annual golf
tournament at the Chembur Golf Club in Mumbai where Kapil Dev participated.
About Birla Sun Life Insurance
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
internationalfinancial services organization. The local knowledge of the Aditya Birla
Group combined withthe expertise of Sun Life Financial Inc., offers a formidable
protection for your future.Birla Sun Life Insurance (BSLI), in its five successful years of
operations, has contributedsignificantly to the growth and development of the life
insurance industry in India. It pioneeredthe 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 theinternet. It was the first private
sector player to introduce a pure term plan in the Indian market.This was supported by
sales practices which brought a degree of transparency that was entirely1
new to the market. The process of getting sales illustrations signed by customers and
offering afree look period on all policies, which are now industry standards, were
introduced by BSLI.Being a customer-centric company, BSLI has invested heavily in
technology to build world class processing capabilities. BSLI has covered more than a
million lives since inception and itscustomer base is spread across more than 1000 towns
and cities in India. All this has assisted thecompany in cementing its place amongst the
leaders in the industry in terms of new business premium income. The company's current
capital base is Rs.520 crore.
About the Aditya Birla Group
The Aditya Birla Group has a turnover close to Rs.38,000 crore (as on 31 March 2008)
and isone of the largest business houses in India. It enjoys a leadership position in all the
sectors inwhich it operates. With over 75 business units spanning the South East Asian
belt, Africa,Canada and the UK among others, it is reckoned as India's first multinational
corporation. Thegroup is anchored by 72,000 employees and has seven lakh shareholders,
with a marketcapitalization of Rs.53,400 crore.

About Sun Life Financial Inc.

Sun Life Financial Inc. is a leading international financial services organization providing
adiverse range of wealth accumulation and protection products and services to
individuals andcorporate customers. Tracing its roots back to 1865, Sun Life Financial
and its partners todayhave operations in key markets worldwide, including Canada, the
United States, the UnitedKingdom, Hong Kong, the Philippines, Japan, Indonesia, India,
China and Bermuda. As of 31March 2008, the Sun Life Financial group of companies
had total assets under management of US$ 343 billion. Sun Life Financial Inc. trades on
the Toronto (TSX), New York (NYSE) andPhilippine (PSE) stock exchanges under ticker
symbol
Key peoples of organisation
Board of Directors

Mr. Kumar M Birla

Mr. Donald A Stewart,

Mr. Bishwanath N Puranmalka

Mr. Ajay Srinivasan

Mr. Gary M Comerford

Mr. Suresh N Talwar

Mr. Gian P Gupta

His Highness Maharaja G Singh

Mr. Stephan Rajotte

Dr. Bharat K Singh

Investment Committee

Mr. B. N. Puranmalka

Mr. Eugene Lundrigan

Mr. Ajay Srinivasan

Mr. Vikram Mehmi

Mr. Mayank Bathwal

Mr. Fabien Jeudy

Mr. Vikram Kotak

Ms. Keerti Gupta

Management TeamMr. Vikram Mehmi
President & Chief Executive Officer
Mr. Mayank Bathwal
Chief Financial Officer
Mr. Mario Braganza
Chief Operating Officer
Mr. E.N. Goveia
Head - Direct Sales Force1
Competitors in Detail:
Aviva life insurance:
Aviva Life Insurance Company India Pvt. Ltd. is a joint venture between Aviva of UK
and Dabur, one of India's leading producers of traditional healthcare products. Aviva
holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74
per cent share.

Bajaj Allianz:
Bajaj Allianz is a joint venture between Allianz AG one of the world's largestinsurance
companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in
theworld. Bajaj Allianz is into both life insurance and general insurance. Allianz Group is
one of the world's leading insurers and financial services providers. Founded in 1890 in
Berlin,Allianz is now present in over 70 countries

HDFC Standard Life Insurance Co. Ltd:

is a joint venture between HDFC Ltd., India'slargest housing finance institution and
Standard Life Assurance Company, Europe's largestmutual life company. It was the first
life insurance company to be granted a certificate of registration by the IRDA on the 23rd
of October 2000.

ING Vysya Life Insurance Company Limited:

is a joint venture between Vysya Bank andING Group of Holland, the world's 4th largest
financial services group, with presence across50 countries, and a heritage of over 150
years.

Kotak Mahindra Old Mutual Life Insurance Ltd:

is a joint venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc.
Kotak Mahindra is one of India's leadingfinancial institutions and offers a range of
financial services such as commercial banking.

Life Insurance Corporation of India:

(LIC) is an autonomous body authorized to run thelife insurance business in India with its
Head Office at Mumbai. It has been established by anact of the Parliament and started
functioning from 1/9/1956.

ICICI Prudential Life Insurance :

ICICI Prudential life insurance is a part of ICICI Bank.

Max New York Life Insurance Company Limited

is a joint venture between Max IndiaLimited, a multi-business corporate, and New York
Life International, a global expert in lifeinsurance. New York Life is a Fortune 100
company that has over 160 years of experience inthe life insurance business.

MetLife India Insurance Co. Pvt Ltd

is a joint venture between MetLife Group and itsIndian partners. The Indian partners
include J&K Bank, Dhanalakshmi Bank, KarnatakaBank, Karvy Consultants, Geojit
Securities, Way2Wealth, and Mini Muthoothu.

Reliance Life Insurance Company

Limited is a part of Reliance Capital Ltd. of the Reliance- Anil Dhirubhai Ambani Group.
The company acquired 100 per cent shareholding in AMPSanmar Life Insurance
Company in August 2005. Taking over AMP Sanmar Life providedReliance Life

Insurance a readymade infrastructure and a portfolio.

SBI Life Insurance

is a joint venture between the State Bank of India and Cardiff SA of France. SBI Life
Insurance is registered with an authorized capital of Rs 500 crore and a paidup capital of
Rs 350 cores.

Tata AIG Life Insurance Company

Limited is a joint venture between Tata Group andAmerican International Group, Inc.
(AIG). Tata Group is one of the oldest and leading business groups of India
Group has had a long association with India's insurance sector having been the largest
insurance company in India prior to the nationalization of insurance.The Late Sir Dorab
Tata was the founder Chairman of New India Assurance Co. Ltd., agroup company
incorporated way back in 1919.

Shriram Life Insurance Company

Ltd is a joint venture between the Chennai-basedShriram Group and the South African
insurance major Sanlam. The company launched itsoperation in India in December 2005
operation in India in December 2005
STRENGTH:
1

Multi-channel distribution and one of the largest distribution networks in India.

Implementing
Six-Sigma
process.

Customer centric
products and services.

Superior investment and risk management framework

1 Million Policies
sold within 3 and half years.

Company has
maximum number of MDRT
as well as good number of
HNI
advisors.

Training process of the company is very strong.

Different plan for different peoples.

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 company.

OPPORTUNITY:

Insurance market is very big, where company can expand its horizon in insurance
industry
.
Though good investment and insurance it is easy to top Indian customers.

The huge insurance market (77%) is left so company has opportunity to expand our
products.

To associate with the more number of HNI.

THREATS:

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
-which is an only government company.

Plans for all income groups are not available which can create adverse effect later on
themarket share of the company.
1.2 INTRODUCTION TO THE PROJECTEVALUATION OF INSURANCE
operation in India in December 2005
STRENGTH:
1

Multi-channel distribution and one of the largest distribution networks in India.

Implementing
Six-Sigma
process.

Customer centric
products and services.

Superior investment and risk management framework

1 Million Policies
sold within 3 and half years.

Company has
maximum number of MDRT
as well as good number of
HNI
advisors.

Training process of the company is very strong.

Different plan for different peoples.

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 company.

OPPORTUNITY:

Insurance market is very big, where company can expand its horizon in insurance
industry
.
Though good investment and insurance it is easy to top Indian customers.

The huge insurance market (77%) is left so company has opportunity to expand our
products.

To associate with the more number of HNI.

THREATS:

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
-which is an only government company.

Plans for all income groups are not available which can create adverse effect later on
themarket share of the company.
1.2 INTRODUCTION TO THE PROJECTEVALUATION OF INSURANCE
The evaluation of insurance dates back as early as the commencement of trade between
twocountries in England, especially between the European countries. During the
transportation of goods, there were chances of the ship being drowned in the rough sea
conditions or attacked bythe pirates, leading to huge loss to the party sending goods. The
traders of England devised away whereby the loss of the goods would be compensated by

every trader putting in someamount as per their financial strength so that a single party
may not be the loser; this is the earlier concept of insurance. This concept is taking shape
for the last 300 years, yet in India the firstinsurance company was established in 1818
with the advent of European widows. The name of the company was oriental life
insurance company.
WHAT IS INSURANCE?
Insurance is a mechanism that ensures an individual to thrive on adverse consequences
bycompensating the individual, his/her loss financially. Every individual in the world and
allactivities connected with him/her, be it life, profession, business, travel or any other
pursuits aresubject to unforeseen and uncalled for hazards or dangers. The benefit that an
individual enjoysin his life by owning a car or a house or a factory can be snatched by
sudden accident which canrender even the individual immobile, and his family
vulnerable. At this critical juncture, onlyinsurance helps him not only to survive but
recover his loss and continue his life in a normalmanner, which would otherwise be
unthinkable.The concept of insurance is quite simple. People, who are in similar trade
and are exposed to thesame risks, congregate and some to an agreement that if any
individual member suffer a loss,then the loss will be shared by others and minimized in
order to enable the individual member recover from the loss and cover his ground.
Similarly the different kinds of risks can beidentified and separate groups can be formed
to counter such risks and reduce to impact tomanageable proportion, in which the share
could be collected from the members either after theloss or in advance, at the time of
admission to the group. This is an exemplary sign of humanityand insurance therefore
serve the mankind to a great extent; a point most of the individual tend tooverlook, since
monetary aspect is involved. Now such is for tangible assets.The concept of insurance
has been extended beyond the coverage of tangible assets. Exportersrun the risk of
importers in other country defaulting as well as losses due to sudden fluctuationsin the
currency exchange rates, economic policies turmoil. The risk are not insured. Doctors
runthe risk of being charged with negligence and can subsequently liable for damage. The
amount in
question can be fairly large, beyond the capacity of the individual to bear. These are
insured.Thus insurance is extended to intangible assets. In some countries even the voice
of a singer ,legs of the footballer can be insured, even though the advantage of spread
may not be availablein these cases. Satisfaction of economics needs requires generation
of income from somesources. If the property, which is the source of such income, were
lost fully or partially, permanently, or temporarily, the income too would stop. The
purpose of insurance is tosafeguard against such misfortune few, through the help of the
fortune many, who were exposedto the same risk , but saved from the misfortune . Thus
the essence of insurance is to share lossessubstitute certainty by uncertainty.The different
types of human activities that come under the umbrella of insurance are as follows.1.
House/office/factory or any moveable object destroyed in life - Fire insurance2. Shipment
or transportation of goods - Marine insuranceBy ship, destroyed in catastrophe.3.
jewellery /cash/ household goods - Burglar insuranceStolen or robbed4. Goods in transit
by roads or railways destroyed. - Carrier insurance5. Theft or accident of vehicles Vehicle insurance6. Financial cover in ailment /surgery etc - Health insuranceAll these
are non-life insurance. In conclusion one can safely say that the purpose of insurance be it

or non-life is to transfer the financial loss to the insurance company who spreads in over
tothe policyholders.
Life insurance
Life insurance (Life Assurance in British English) is a type of insurance. As in all
insurance, theinsured transfers a risk to the insurer. The insured pays a premium and
receives a policy inexchange. The risk assumed by the insurer is the risk of death of the
insu
red

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 John Smith buys a policy on his own life, he is both the owner
and the insured. But if Mary Smith, his wife, buys a policy on John's life, she is the
owner and he is the insured. Theowner 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 isnot a party to the policy, but is
designated by the owner, who may change the beneficiary unlessthe 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.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 (usuallytwo 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 theinsured dies within this period, the insurer has a legal
right to contest the claim and requestadditional 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 thefinancial 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 replacingthe deceased's wages. Other
reasons include estate planning and retirement. The owner (if not theinsured) must have
an insurable interest in the insured, i.e. a legitimate reason for insuringanother persons
life. The insurer (the life insurance company) calculates the policy prices withintent to
recover claims to be paid and administrative costs, and to make a profit. The cost of
insurance is determined using mortality tables calculated by actuaries.Actuaries are
professionals who use actuarial science which is based in mathematics (primarily
probability and statistics). Mortality tables are statistically based tables showing average
lifeexpectancies. The three main variables in a mortality table are age, gender, and use of
tobacco.The mortality tables provide a baseline for the cost of insurance. In practice,
these mortality
tables are used in conjunction with the health and family history of the individual

applying for a policy in order to determine premiums and insurability. The current
mortality table being used bylife insurance companies in the United States and their
regulators was calculated during the1980s. There is currently a measure being pushed to
update the mortality tables by 2008.The current mortality table assumes that roughly 2 in
1,000 people aged 25 will die during theterm of coverage. This number rises roughly
quadratically to about 25 in 1,000 people for thoseaged 65. So in a group of one thousand
25 year old males with a $100,000 policy, a lifeinsurance company would have to, at the
minimum, collect $200 a year from each of thethousand people to cover the expected
claims. The insurance company receives the premiumsfrom the policy owner and invests
them to create a pool of money from which to pay claims, andfinance the insurance
company's operations. Contrary to popular belief, the majority of themoney that
insurance companies make comes directly from premiums paid, as money gainedthrough
investment of premiums will never, in even the most ideal market conditions, vestenough
money per year to pay out claims. Rates charged for life insurance increase with
theinsured's age because, statistically, a people are more likely to die as they get older.
Sinceadverse selection can have a negative impact on the financial results of the insurer,
the insurer investigates each proposed insured (unless the policy is below a companyestablished minimumamount) beginning with the application, which becomes part of the
policy. Group Insurance policies are an exception. This investigation and resulting
evaluation of the risk is calledunderwriting. Health and lifestyle questions are asked, and
the answers are dutifully recorded.Certain responses by the insured will be given further
investigation. Life insurance companies inthe United States support The Medical
Information Bureau, which is a clearinghouse of medicalinformation on all persons who
have ever applied for life insurance. As part of the application,the insurer receives
permission to obtain information from the proposed insured's physicians.Life insurance
companies are never required by law to underwrite or to provide coverage onanyone.
They alone determine insurability, and some people, for their own health or
lifestylereasons, are uninsurable. The policy can be declined (turned down) or rated.
Rating meansincreasing the premiums to provide for additional risks relative to that
particular insured.Many companies use four general health categories for those evaluated
for a life insurance policy. These categories are Preferred Best, Preferred, Standard and
Tobacco. Preferred Bestmeans that the proposed insured has no adverse medical history is
not under medication for anycondition, and his family (immediate and extended) has no
history of early cancer, diabetes or
other conditions. Preferred is like Preferred Best, but it allows that the proposed insured
iscurrently under medication for the condition and may have some family history. Most
people arein the Standard category. Profession, travel, and lifestyle also factor into not
only which categorythe proposed insured falls, but also whether the proposed insured will
be denied a policy. For example, a person who would otherwise be in the Preferred Best
category will be denied a policyif he or she travels to a high risk country.Upon the death
of the insured, the insurer will require acceptable proof of death before payingthe claim.
The normal minimum proof is a death certificate and the insurer's claim formcompleted,
signed, and often notarized. If the insured's death was suspicious and the policyamount
warrants it, the insurer may investigate the circumstances surrounding the death,
beforedeciding whether there is a legal obligation to pay the claim.Proceeds from the
policy may be paid in a lump sum or as an annuity paid over time in regular recurring

payments for either for the life of a specified person or a specified time period.
Contribution of life insurance in development of economy

Contribution of Life Insurance Sector in the Economy

Flow of Insurance Industry in India

Structure of insurance industry: Snap ShotIndustry

Aggregation of long term savings

Spread of financial services in rural Areas

Long term funds for infrastructure development of capital Markets/ Economic Growth

Employment
generation

Special Futures

Growth Potential
DETAILS OF PRODUCTS
PRODUCTS
Life is unpredictable. But in face of adversity, our responsibilities towards our parents,
childrenand loved ones need not be compromised. Insurance planning equips you to
smooth out theuncertainties and adversities that life might send your way, so that the best
that life has to offer,secure in the knowledge that your beloved ones are well provided for.
BSLI offers a completerange of insurance products
1
.
Protection Plans2. Savings Plans3. Child Plans4. Investment Plans5. Retirement Plans6.
Group Plans7. Rural PlansInsurance Plans
BSLI offers
Lifeguard
- a set of pure protection plans. Choose from amongst three different product structures to
insure your life and provide total security to your family, at a veryaffordable cost.

7. Rural PlansInsurance Plans

BSLI offers
Lifeguard
- a set of pure protection plans. Choose from amongst three different product structures to
insure your life and provide total security to your family, at a veryaffordable cost.
Level Term Assurance with return of premium

On death the entire sum assured will be paid.

On maturity, all the premiums paid will be returned.

Level Term Assurance without return of premium

On death the entire sum assured will be paid.

No survival or maturity benefits.You can also enhance the above two policies by adding
Accident& Disability Benefit Rider and Waiver of Premium Rider (WOP)
Level Term Assurance - Single premium:

On death the entire sum assured will be paid.

No survival or maturity benefits

Protection Plans
BSLI offers a variety of policies that give you the benefits of protection and the
opportunity tosave for important assets or events, like a home, a car or a wedding.A
regular premium unit-linked insurance plan with an assurance of Capital Guarantee# with
theadded advantage of flexible liquidity option. An ideal plan for long term planning with
the benefit of liquidity
The key features of the plan are:

Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of

theannual premium. You can also choose the term of the plan.

At the end of the term, the higher of the value of units or the guaranteed value is paid.
Ondeath, Sum Assured along with the higher of value of units or the guaranteed value is
payable.

Facility to make withdrawals from the 6th policy year onwards till the end of the policy

term.Every year withdraw up to 10% of the value of units.

Additional credits payable as a percentage of the initial annual premium are paid along
withthe death or maturity benefit.

Additional insurance for 10 years after the maturity, for an amount of 50% of the
SumAssured
Savings Plans

Flexibility to make additional investment with the help of the top-up facility.

Flexibility to increase / decrease your annual premium Amount

Facility of Automatic Premium Payment- With this facility you can take a temporary
break from premium payment.

Total transparency with the premium allocations, and other charges declared upfront.

The guaranteed value of the unit fund is the value of all invested premiums (premiums
net of all charges) along with the declared bonus interests.With Automatic Premium
Payment facility, you can avail a temporary break from premium payment for a
maximum of 1 year. This facility is available once if the premium paying term isless than
15 years and twice, if it is 15 years or more. You can also enhance your policy by
adding Accident & Disability Benefit Rider , Waiver of Premium Rider and Critical
Illness Rider .A regular premium unit-linked insurance plan with an assurance of Capital
Guarantee# An ideal plan for your long-term savings and protection requirement.
The key features of the plan are
:

Flexibility to choose a specific level of protection (

Sum Assured
), based on a multiple of theannual premium. You can also choose the term of the plan.

At the end of the term, the higher of the value of units or the guaranteed value is paid.
Ondeath, Sum Assured along with the higher of value of units or the guaranteed value is
payable

Additional credits payable as a percentage of the initial annual premium are paid along
withthe death or maturity benefit.

Additional insurance for 10 years after the maturity, for an amount of 50% of the
SumAssured.

Flexibility to make additional investment with the help of the

top-up
facility.

Flexibility to
increase / decrease
your annual premium amount

Facility of Automatic Premium Payment- With this facility you can take a
temporary break
from premium payment.

Total transparency with the premium allocations, and other charges declared upfront.
Theguaranteed value of the unit fund is the value of all invested premiums (premiums net
of allcharges) along with the declared bonus interests.With Automatic Premium Payment
facility, you can avail a temporary break from premium payment for a maximum of 1
year. This facility is available once if the premium paying term isless than 15 years and
twice, if it is 15 years or more.The capital guarantee is applicable only on the invested
premium and the declared bonusinterests. You can also enhance your policy by adding
Accident & Disability Benefit Rider,Waiver of Premium Rider and Critical Illness
Rider.A unit-linked insurance plan with an assurance of Capital Guarantee which offers
you the benefitof a limited premium payment term. An ideal plan for protection with
wealth creation that offersthe flexibility of a limited premium paying term
.

Flexibility to choose a premium payment term of 5, 7 or 10 years for a maturity term of

10,15 or 20 years respectively.

Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of

theannual premium.

At the end of the term (maturity), the higher of the value of units or the guaranteed value
is paid. On death, Sum Assured along with the higher of value of units or the guaranteed
valueis payable.

Additional credits payable as a percentage of the initial annual premium are paid along
withthe death or maturity benefit.

Facility to make withdrawals from the 6th policy year onwards till the end of the policy
term.Every year withdraw up to 10% of the value of units

Flexibility to make additional investment with the help of the top-up facility.

Flexibility to increase / decrease your annual premium amount

Total transparency with the premium allocations, and other charges declared upfront
.

The guaranteed value of the unit fund is the value of all invested premiums (premiums
net of all charges) along with the declared bonus interests.

The capital guarantee is applicable only on the invested premium and the declared
bonusinterests. You can also enhance your policy by adding Accident & Disability
Benefit Rider and Critical Illness Rider.

Presenting Premier Life The Preferred plan for the Preferred Customer. The key
features of the plan are:

Limited premium payment option: Choose from among a 3, 5, 7 or 10 year premium

payingterm.

Choice of sum assured: Choose a sum assured, which is a minimum multiple of 1 and
amaximum multiple of 25 times the annual contribution.

Additional allocation of units on a periodic basis.

Facility to top-up your investment any time you have surplus funds.

Choose from among four funds, based on your investment objective and risk appetite.
Flexibility to decrease your sum assured.

Add-on riders to protect you against any eventuality.

Loans against the policy.You can also enhance your policy by adding
Critical IllnessRider, Accident & Disability Benefit Rider.
1
Presenting Life Time unit linked plans that meet your changing needsover a lifetime.
These solutions have been developed to meet your savings, protectionand investment
needs at every stage in life.
Protection

Choose a specified level of protection (available only with Lifetime).

Two levels of Sum Assured to choose from (available only with Lifetime II).

Flexibility to increase or decrease your sum assured

.

Add-on riders to protect you against any eventuality.

Savings

Flexibility to increase or decrease your contribution.

Facility of Premium Holiday, wherein the policy continues even if there is a temporary
break in the payment of annual contribution (available only with Life Time).

Facility of Automatic Cover Continuance, wherein the policy continues even if there is
atemporary break in the payment of annual contribution

Facility to top-up your investment any time you have surplus funds.

Additional allocation of units on a periodic basis.

Loans against the policy.

Investment:

Choose from among four funds, based on your investment objective and risk appetite.

Choice to switch between investments options (4 free switches every policy year).You
can also enhance your policy by adding Critical Illness Rider, Major Surgical
AssistanceRider, Accident & Disability Benefit Rider, Accident Benefit Rider (available
only with LifeTime) and Waiver of Premium Rider. An insurance plan that gives added
protection, savingsand multiple options, all in one!

The flexibility to choose your premium contribution.

The flexibility to choose amongst three levels of cover (in the form of sum assured) for
thesame amount of total annual contribution.

The flexibility of shifting between the three levels of cover, as you require.

The flexibility of receiving your maturity proceeds as a lump sum or in equal

annualinstallments over 3 or 5 years.1
You can also enhance your policy by adding Variety of Riders An insurance plan that
givesyou added protection, savings, multiple options, plus the power of liquidity.

The flexibility to choose your premium contribution.

The flexibility to choose amongst three levels of cover (in the form of sum assured) for
thesame amount of total annual contribution.

The flexibility of shifting between the three levels of cover, as you require.

The flexibility of receiving your maturity proceeds as a lump sum or in equal

annualinstallments over 3 or 5 years.

The flexibility of withdrawing up to 10% of the accumulated value of your policy, after
thefirst 5 policy years.You can also enhance your policy by adding Variety of Riders An
ideal plan for those whowant to accumulate funds on a regular basis while enjoying
insurance protection.


Guaranteed Benefits:
Guaranteed additions @ 3.5% of the Sum Assured, compoundedannually for the first 4
years of the policy.

Extended Life Cover:

An extended cover for 5 years after the maturity of the policy, for 50% of the sum
assured, at no extra cost.

Maturity Benefit:
At the end of the term, the policyholder receives the full sum assured, theguaranteed
additions and the vested bonuses.

Death Benefit:
The beneficiary receives the sum assured, the guaranteed additions and thevested bonuses
in case the life assured were to meet with an unfortunate event. In case the lifeassured is
aged 7 years or less, the basic premium paid will be returned.You can also enhance your
policy by adding Critical Illness Rider, Major Surgical AssistanceRider, Accident &
Disability Benefit Rider, Waiver of Premium Rider (WOP) As a responsible parent, you
will always strive to ensure a hassle-free, successful life for your child. However, lifeis
full of Uncertainties and even the best-laid plans can go wrong. Heres how you can give
your child a 100% safe and assured tomorrow, whatever the uncertainties. Smart Kid is
especiallydesigned to provide flexibility and safeguard your childs future education and
lifestyle, takingall possibilities into account. Choose from amongst a basket of 4 plans:

Smart Kid regular premium

Smart Kid unit-linked regular premium

Smart Kid unit-linked regular premium II

1

Smart Kid unit-linked single premium IICHILD PLANSAll these plans offer you:


Financial Benefits:
Regular payments at critical stages in your childs life, like Boardexaminations,
Graduation and Post-graduation.

Total peace of mind, even if you are not around

Sum Assured is paid immediately:

Ensures that your loved ones stay financially secure,even in your absence.

All future premiums are waived:

Ensuring that your family is not financially burdened inyour absence.

Policy benefits continue:

The educational benefits of the policy continue, ensuring that your child can realize his or
her dreams without any hassles.

Development Allowance:
Smart Kid guarantees regular income to secure your childseducational career and also
ensures his or her all-round development, for a nominal additionalamount. The
Income Benefit Rider
takes care of this through an annual payment of 10% of the sum assured, to your child,
till the maturity of the policy, in the unfortunate event of thedeath of the parent. All Smart
Kid plans can be enhanced with the
Accident &
DisabilityBenefit Rider and Income Benefit Rider .
You can also an Accident Benefit Rider to aSmart Kid Regular Premium policy, and a
Waiver of Premium Rider (WOP)
t
o Smart Kidunit-linked regular premium policy.Life Link II is a unique plan that
combines the security of a life insurance policy with theopportunity of enjoying high
returns on your investments, without the marketrisks compromising on the protection of
your family!
Death Benefit:
The Sum Assured under the product has 2 options, either 500% of the initial premium or
105% of the initial premium. In the event of an unfortunate death, the beneficiarywill
receive higher of the value of units or the initial death benefit, less any withdrawals.

Withdrawal Benefit:
One can make partial withdrawals from the accumulated value of the policy after
completion of one policy year.
Flexibility:
Choose from four fund options, based on your investment objective and risk appetite. If
at a later stage your financial priorities change, you can switch between the variousfund
options, absolutely free, 4 times a year.
Investment Plans
Life Expectancy has been rising rapidly and today you can expect to live longer than your
earlier generations. For you, this increase will mean a longer retirement life, stretching
into a couple of decades. BSLI Retirement Solutions that combine the best of insurance
and investment. Thesesolutions are developed to ensure your peace of mind for the years
to come.1. Why plan for retirement?2. How much should I set aside for retirement?3. The
impact of inflation on your retirement savings4. Why plan early?5. About Annuities
Why plan for retirement?
For too many people, the joy of retirement after years of hard work is eclipsed by the
financialuncertainties that it brings. Despite all the planning and saving, you can never
sure whether your money will last a lifetime. Retirement planning offers a way to ensure
a more enjoyable, stressfree tomorrow. A prudent plan will ensure that increasing life
expectancy, higher inflation andincreasing taxes do not eat away into your hard earned
savings.
Retirement PlansHow much must I set aside for retirement?
To ensure a comfortable retired life, you would be wise to invest money into additional
avenueslike pension plans. How much you need to invest can be answered by answering
some questionssuch as:1. How long do you have to save that amount before retirement?2.
Where can you invest your retirement money?3. How much risk are you willing to take
on your investments?In an era of competitive parity, the only asset that makes a decisive
difference between corporatesuccess and failure is the quality of human capital.
Employee benefits have proven to be anexcellent tool to optimize the retention of talent
and improve an organizations bottom-line. Thequality of an organizations employee
benefits establishes and maintains a company's image as acaring employer. Optimum care
of employees is a long-term investment that results in asustained competitive advantage
for an organization in the times to come.
BSLI Group Solutions Advantage:

An integrated basket of employee benefits solutions that offer incomparable flexible

benefits.

Sound investment management that focuses on safety, stability and profitability of the
portfolio.

Personalized financial planning for your employee that takes care of his/her
changingfinancial needs at every stage of life.

Quality service initiatives and transparency across all operations, promising

superlativeoperational efficiency.
Group SolutionsGroup Term Assurance:
Helps provide affordable cover to members of a group.
Group Gratuity Plan:
Helps employers fund their statutory gratuity obligation in a flexible andhassle-free
manner.
Group Superannuation Plan:
A flexible scheme (defined benefit and defined contribution) to provide a retirement kitty
for each member of the group.
Group Term Assurance:
BSL
I
flexible group term solution helps provide affordable cover to members of a group.
Thecover could be uniform or based on designation/rank or a multiple of salary, and can
be extendedto all employees between the ages of 18 and 65 years.The benefit under the
policy is paid on the event of the members death to the beneficiarynominated by the
member. It is a one-year renewable policy where one master policy covers all proposed
employees comprising the group, with a minimum group size of 25 persons.
Newmembers can join the group and outgoing members can leave the group at any point
during the policy term.
Highlights include:

Greater convenience
for the employees with relaxed underwriting and medicalrequirements.

"Free Cover Limits"

with simplified underwriting depending upon the number of employees in the group and
the level of cover chosen.

Guaranteed benefit:
On death during the term of the contract (while in Service), the sumassured will be paid
to the beneficiary of the employee.

Choice of additional coverage in form an Accident and Disability Benefit Rider and

CriticalIllness Cover

Premium is viewed as a business expense in the year of payment.

Group Gratuity Plan:BSLI
group gratuity plan helps employers fund their gratuity obligation in a scientific
manner.Employers can avail of the tax benefits as applicable to approved gratuity funds.
The plan canalso be customized to structure schemes that can provide benefits beyond the
statutoryobligations. Highlights include:

Wider choice of investments with Market Linked Plans

- to meet the diverse financialgoals. We offer 4 investment options (short-term debt, debt
and balanced and capitalguarantee plan) where investments will be made in accordance
with the fund objectives.

Transparency
through Daily disclosure of Unit Value and regular disclosure of the portfolioof each of
the investment option

Flexibility
through switching and contribution redirection option to enable reshuffling of portfolio

Bundled Life Cover

greater value to the employee by packaging life insurance covers withthe gratuity, with
minimal amount of underwriting.

Actuarial services
to provide a scientific estimation of the gratuity liability.

Low explicit charge structure

with the conditions for exit specified upfront.

Enhanced service levels

through faster claim settlement, easier access to information andregular statements.

Complete end to end solution in the legal and regulatory approval process forscheme set
up or transfer

Employee Benefits:

The contribution made by the employer is not included in the value of taxable perquisites
inthe hands of the employee.

Gratuity received up to Rs 350000 is exempt from Income tax under Sec 10(10)

Annual contribution up to 8.33% of salary bill in a financial year is allowed a deduction

for the purpose of computation of profits and gains of business.

Contribution towards past service liability is allowed as deduction as per the Income
Taxrules.
Group Superannuation Plan:BSLI Superannuation
Scheme (for both Defined Benefit and Defined Contribution funds)offers substantial
benefits to both employers and employees. The employer and employee canavail of tax
benefits applicable to an approved superannuation trust. The scheme will provide for a
retirement fund for each participating employee. An employee would be able to choose
fromvarious annuity options or opt for partial commutation of corpus at retirement.
Highlights include:

Wider choice of investments with Market Linked Plans

to meet the diverse financialgoals. We offer 5 investment options
(short-term debt, debt, balanced, growth and capitalguarantee plan)
where investments will be made in accordance with the fund objectives.

Maturity/Death benefit Sum Assured

BSLI - Regular Premium:BSLI
is a regular premium policy with the following features:

Individual policy

Only Life cover

Term - 3 & 5 Yrs

Age independent premium


Age at entry 18 - 45 Yrs

Sum Assured Single

Premium / Year Rs 50 200

Maturity/Death benefit Rs.5,000 - 20,000

Death Benefit Sum Assured

IRDA:
The insurance sector has been opened up in India, as there was an urgent need. The
internationalexperience indicates those country with a liberalized insurance sector have
witnessed a rapidgrowth in premium volumes enhancing the domestic saving rate. This
happened in
China,Malaysia and Singapore
where a competitive market has led to improvement in Services andquicker settlement of
claims. It is also important to note that competition will bring aboutadvancement in
information, communication and technology. And rightly therefore a decisionwas taken
by the Government of India to open up Insurance sector. The establishment of
IRDAin the month of April 2000
has been important development in this direction, making the end of monopoly in the
insurance sector.
WHY INSURANCE IN INDIA:

Only 22% of the insurance population has been extended cover. Market penetration is
lowand the potential to exploit is high.

Insurance premium per capita is very low.

Lack of comprehensive social system benefit and welfare means that demand for pension
products is high.

Huge middle class of approximately 300 Million.1

Existing insurance company score low on customer service front.The insurance market
registered growth in the Asian region even though Indias share in globalinsurance is less

than 0.5% (1988) as compared to USA (24.2%) and Japan (21%). Studies haverevealed
that in an emerging market, as disposable income rises, Insurance premiums as a ratioof
GDP shoots up. The confederation of Indian Industry projected a growth of Life
Insurance premiums from Rs.350 Billion at present to Rs.140 Billion. TheGrowth of nonlife insurance premium is expected to increase from 75 billion to 375 billion. Outof
which, only 10% is tapped by the existing insurer.Insurance even more than banking is a
volume game. A very exclusive approach in view isunlikely to provide meaningful
numbers. Currently, insurance is bought for the purpose of tax- benefits. A higher
percentage of business is in the rural market. The share of rural newBusiness insurance
total new business is 55% in terms of policies and 47% in terms of sumassured. However,
this needs to be viewed in the light of some recent issues that have beenraised regarding
as to what constitutes the rural market. Therefore, private insurers will be bestserved by
middle market approach, targeting the customer segments that are
presentlyunexploited.How many Indians are aware that LIC has more than 60 Products
and GIC has more than 180Products? Not only there is a reduction in the premiums of
Life Insurance products have longoverdue since Indian morality rate has decreased three
folds in the last 50 years. There is alsoscope to increase the yield on life insurance
policies (presently 6%) with proper risk managementin place.It is been debated that
insurance business does not produce profit in the first five years crosssubsidization is a
feature of Indian market. Even the first portfolio vote that is considered profitable, cross
subsidizes other departments. Tariffs reduction is likely to reduce profits; further insurers
have to institute proper claims management progress in order to extract efficiencies. At
present life insurance business in the country is taxed at 12.5% of the profit in financial
year. Thegovernment is soon to present a new model of taxing life insurance companies
at internationalrates. New entrants should be well advised to look ahead to the stage
where brand strength will be a competitive advantage and sketch their alliances
accordingly. In fact, we believe thatalliance related to distribution rather than to produce
or technology will prove most valuable inthe long run.1
Banks and financial companies will emerge, as attractive distribution channel for this
insurancetrend will be led by two factors, which already apply in other world market.
First Banking foodinsurance, fund management and other financial services companies
are being to increase their profitability and provide maximum value to their customers.
Therefore, they are themselveslooking for a range of products to distribute. In other
market notably Europe; this has resulted in bank assurance. Bank entering into the
insurance business in India to bank hope to maximizeexpensive existing network by
selling a range of products more of a loss alliance betweeninsurance and bank than a
formal ownership. Some Indian entrants like ICICI, HDFC andReliance hope to ride their
existing network and customer bases.
REVIEW OF LITERATURE

universe banking is being accepted. In India, the signs of initial success are already there

despitethe fact that it is completely new phenomenon. The factor and principles of why it
is a successelsewhere exists in India, and there is no doubt that banks are set to become a
significantdistributor of insurance related products and services in the years to come.
Rao (2005)
analyzed that the insurance industry has grown by 83 percent since the opening upthe
sector. Remarking on the performance of the insurance industry, C S Rao,
chairman,insurance regulatory & development authority, said public sector players have
not suffered withthe opening up of the sector. Insurance premium income has risen to Rs
82,415 crore (Rs 824.15 billion) in 2003-2004, against Rs 45,000 crore (Rs 450 billion)
in 2000-01. Rao expects premiumincome in the life insurance sector to rise further by 1516 percent and non-life insurance premium by 14 percent in 2005-06. The growth comes
on the back of healthy demand from themanufacturing sector.
Kannan k.v (2006)
reviewed in their study that the market potential for private insurancecompanies is found
to be greater in the long run as most of the Indians are of the opinion that, private
insurance companies would be able to perform well in the future. The private and
foreigninsurance companies have too immediate steps in appointing more number of
agents and/or advisors in addition to the employees as it has found that agents are the best
channel to reach thegeneral public regarding selling of insurance products. The private
and foreign insurancecompanies have to concentrate on the factors like prevention of
loss, assured returns andlong term investment. They can also focus on an insurance
amount of Rs. 1-2 lakhs withmoney back policies. Hence, the market has potential. The
private and foreign insurancecompanies that are taking immediate steps can tap it.
Sasidharan Sanjeev (2006)
studied that the insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.Tracing the
developments in the Indian insurance sector reveals the 360-degree turn witnessedover a
period of almost two centuries
.Athma Prashanta(2007)
reviewed that in globalization policy, insurance company face adynamic global business
environment. The existing insurers are facing challenges from non-4
traditional competitors who are entering into the retail market with new approaches and
throughnew channels. While quality of service is the main influencing factor in the
finance market, inthe insurance market, product attributes are the main factors that
influence the success of insurance companies. Though, there has been growth in life
insurance industry over the past fewyears, comparatively, insurance penetration in India
has not increased in spite of the considerablegrowth potential of Indian life insurance
market. With liberalization, many insurance playershave entered this field from the year
2000, and the task before them now is to identify whatfactors influence in decisionmaking. In this context, this study assumes importance. The mainobjective of the paper is
to identify the factor s which the consumers take into consideration before selecting life
insurance products and determine the extent to what these factors are takeninto
consideration for choosing the life insurance products. This research is carried out

bycollecting primary data from 200 policyholders of Life Insurance Corporation on India
throughself-structured questionnaires. The sample consists of 100 policyholders from
urban area and 100 policyholders from rural area. C2 test is employed to test if there is
any association is used tofind out which factor has more influence. Both, product and
non-product attributes have beenfound to be important in selecting a policy but they have
been rated differently. Rating isdifferent in urban and rural areas.
Hsieh An (2008)
investigated the relationship between customer perception of public relations(PR) and
customer loyalty to test for the moderating role of brand image in that relationship.Data
were collected in a survey of customers of the insurance industry in Taiwan, using
aquestionnaire designed on the basis of focus-group discussions with 30 consumers.
Hierarchicalregression analysis of data from 367 respondents was used to test two
hypotheses. The resultsshow that consumers perception of an organizations PR practice
is an antecedent of loyalty.The impact of public relation perception (PRP) on customer
loyalty is stronger and moresignificant when the brand image is favorable. The effect of
PRP on customer loyalty isnegligible. This study extends previous research by examining
the moderate of brand image.Further research is indicated, to identify the key moderators
of the driving force of PR in relationto customer relationship marketing. This paper
proposes an original eight-item scale for theassessment of customer PRP activity, which
can be applied in practice to measure itseffectiveness under different brand-image
conditions.5
Andreassen Tor (2008)
studied the impact of customers perception of customer service(bad/good) on variables
that are known to drive revenue, i.e. customer satisfaction, perceivedrelative
attractiveness, and commitment. Data were collected through a survey among bank
customers. Two groups were sampled: customers who have experienced good or bad
customer service. The hypotheses were tested by applying structural equation modeling
and running twogroup analysis using the PLS and LISREL softwares. Customers that
experience bad customer service do take into account the same variables in their
evaluation as do customers thatexperience good customer service. They do however, put
different weights on every factor in theevaluation process. Also the strength of the
relationship between the variables seems to differ.Typically, analyses showed that
customers experiencing bad customer service tend to consider more thoroughly all
aspects of the service; the relationships between the variables were stronger and the
explained variance of each construct higher, than in the group of customers
experiencinggood customer service. However, the paths are not different across the
groups. The paper hasonly tested the model and hypothesis in one industry. Future
research should test the same modelusing different industries reflecting different
customer involvement levels. Practical implicationsfrom this study, service managers can
learn that investing in customer service in ongoingcustomer relations is the right thing to
do as it is linked to customer equity through customerscommitment to the firm. Second,
as customer service in such relationships drives perceivedrelative attractiveness, saving
the bottom line by cutting back on the human side of the customer interaction, may harm
the firms competitive position in the marketplace.
3. NEED SCOPE & OBJECTIVE OF THE STUDY

NEED
Life insurance is chiefly a risk management tool, meant to offer financial protection to
your dependents in the unfortunate event of your death. But in India, as the most other
developingmarket, life insurance has come to present more than just risk cover. This
particular study isconducted on the topic titled to study customer perception regarding
Birla sun life insurancecompany. The aim of this research study is to know about life
insurance. It is done to know the banc assurance in India. Banc assurance has mostly
been a phenomenal success and, althoughslow to gain pace, is now taking across Asia,
especially now that banks are starting to becomemore diverse financial institutions, and
the concept of universal banking is being accepted. InIndia, the signs of initial success are
already there despite the fact that it is a completely new phenomenon.
SCOPE
The study is restricted to Navi-Mumbai region only. The study also analyses the
preferencesregarding different life insurance policies of Birla-sun life insurance. For this
study 100respondents of Navi-Mumbai are chosen. Now days there are lot of private
companies in marketso its important to know what motivates the customer to buy the
policy. Birla sun life is thefastest growing private insurance company in India. It
determines market share of the various private companies in India.
OBJECTIVES

To determine and analyze the Market Potential of the Birla Sun Life Insurance Company.

To determine whether the customers are satisfied with the policies of the company.

To know the the customer awareness regarding the Birla-sun life insurance and its
products.

To study and determine the competitor position in the market.

To know the future plans of the people for buying the policies.

Proper understanding and analysis of life insurance industry.

Conduct market survey on a sample selected from the entire population and derived
opinionon that research
1
RESEARCH METHODOLOGY

Research methodology
Research means a search for knowledge or gain some new knowledge and methodology
can properly refer to the theoretical analysis of the methods appropriate to a field of study
or to the body of methods and principles particular to a branch of knowledge.Research
Design : A research design is the arrangement of conditions for the collections
andanalysis of data in a manner that aims to combine relevance to research purpose with
economy in procedure.
Universe
The universe of the study is Navi-Mumbai.
Sample Unit
The sample unit pertaining to the study is 100 respondents of Navi-Mumbai region.
Sample Size
The sample size of 100 served the purpose of the study.
Sample Method
The sampling method used is non-probability convenience sampling
Methods of data collection
Data collection
The word data means any raw information, which is either quantitative or qualitative in
nature,which is of practical or theoretical use. The task of data collection begins after a
research problem has been defined and research design chalked out. While deciding about
the method of data collection, the researcher should keep in mind that there are two types
of data primary andsecondary.
Primary data
This is those, which are collected afresh and for the first Time, and thus happen to be
original incharacter. There are many ways of data collection of primary data like
observation method,interview method, through schedules, pantry Reports, distributors
audit, consumer panel etc. TheTeam Managers and employees of both the Department
were consulted to get information about procedure of both the online and off line share
trading. But the method used by us for the primary data collection was through
questionnaires
.
Questionnaire method
1

For the collection of primary data I used questionnaire method. A formal list of questions,

whichare to be asked, is prepared in a questionnaire and questions are asked on those

bases. There aresome merits and demerits of this method. These as under: -Merits: -1.
Low cost even when universe is large.2. It is free from bias of interviewer.3. Respondents
have proper time to answer.4. Respondents who are not easily approachable can also be
reachable.5. Large samples can be made.
Secondary data
These are those data, which are not collected afresh and are used earlier also and thus
theycannot be considered as original in character. There are many ways of data collection
of secondary data like publications of the state and central government, reports prepared
byresearchers, reports of various associations connected with business, Industries, banks
etc. Andthe method, which was used by us, was with the help of reports of the company.
Sample Size
I have met 250 people, to know about their perception regarding companies and there
policiesafter that I have taken 25 People they have fill up the questionnaire and given
response.
LIMITATIONS OF INSURANCE

Lack of awareness among the people

This is the biggest limitation found in this sector.Most of the people are not aware about
the importance and the necessity of the insurance intheir life. They are not aware how
useful life insurance can be for their family members if something happens to them.

Perception of the people towards Insurance sector

People still consider insurance just asa Tax saving device. So today also there is always a
rush to buy an Insurance Policy only atthe end of the financial year like January, February
and March making the other 9 months dryfor this business.

Insurance does not give good returns

Still today people think that Insurance does notgive good returns. They are not aware of
the modern Unit Linked Insurance Plans which areoffered by most of the Private sector
players. They are still under the perception that if theytake Insurance they will get only 56% returns which is not true nowadays. Nowadays most1
of the modern Unit Linked Insurance Plans gives returns which are many times more
thanthat of bank Fixed deposits, National saving certificate, Post office deposits and
Public provident fund.

Lack of awareness about the earning opportunity in the Insurance sector

People stilltoday are not aware about the earning
opportunity that the Insurance sector gives. After the privatization of

the insurance sector many private giants have entered the insurance
sector.These private companies in order to beat the competition and to
increase their InsuranceAdvisors to increase their reach to the
customers are giving very high commission rates but people are not
aware of that.

Increased competition
Today the competition in the Insurance sector has became verystiff. Currently there are
14 Life Insurance companies working in India including the LIC(life insurance
Corporation of India). Today each and every company is trying to increasetheir Insurance
Advisors so that they can increase their reach in the market. This situation hascreated a
scenario in which to recruit Life insurance Advisors and to sell life Insurance Policyhas
became very- very difficult.
DATA ANALYSIS AND INTERPRETATIO

Table 5.5 : People Have Other Insurance Plan Apart From BsliPeople have other
insuranceplan apart from BSLINo. of peoplePercentage

Yes7878% No2222%Total 100100%

Figure 5.5 : People Have Other Insurance Plan Apart From BsliAnalysis & Interpretation:
The objective of fifth question was whether people have insurance plan apart from BSLI.
In thesurvey it was found that 78% people have insurance plan other than BSLI while
22% dont haveany other plan
.6.Percentage share of different companies in insurance sector.Table 5.6 : Share of
different companies
1

Name of different companiesPercentageLife insurance company

60%
Birla Sun Life Insurance
9%
Bajaj Aliyanz
11%
ICICI
8%
Other
12%
Total
100%
Figure 5.6 : Share of different companiesAnalysis &Interpretation:
The objective of this study is to find out the percentage share of different companies in
theinsurance sector. it was found that 60% is occupied by LIC,9% by BSLI,11% by
Bajajaliyanz,8% by ICICI and 12% by other companies.
7.Market share of private companies.Table 5.7 : Market share of private companiesList of
companiesPercentageICICI pru
22.1%1

Bajaj Alliaz
13.8%
SBI
9.8%
HDFC standard
7.7%
Birla sun life insurance
7.0%
Reliance life
8.0%
Max new York
8.0%
Tata AIG
7.0%
Aviva
3.1%
Kotak Mahindra
3.6%
Met life
5.3%
ING vysya
2.1%
Shriram life
1.1%
Other
1.1%
Total
100%
Figure 5.7 : Market share of private companies Analysis & Interpretation:
The objective of this study is to find out the market share of different companies in the

insurancesector. It was found that icici pru is having the maximum share that is 22.1%.
FINDINGS OF THE STUDY
FINDINGS

To be successful in marketing of insurance products, the entire business scenario has to

betaken into account.

During the study to be found that majority of people are aware of life insurance sector.

During the survey it was observed that major source of information for consumer
aretelevision and newspaper and least preference are given to magazines, agents and
friends.

Attractive schemes and brand image are the most important factor that influences the
buying behavior of the consumers.1

Majority of respondents will shift to any other insurance company.

People are not satisfied with the opted insurance. It was found that the reason for
thedissatisfaction of consumer is high premium, delay in claim settlement and poor after
saleservice.

So to achieve a greater insurance penetration, insurance sector companies have to create

amore vibrant and competitive industry, with greater efficiency, choice of products and
valuefor customers.
CONCLUSION
CONCLUSION
The market potential for private insurance companies is found to be greater in the long
run asmost of the Indians are of the opinion that, private insurance companies would be

able to perform well in the future. The private and foreign insurance companies have to
take immediatesteps in appointing more number of agents and/or advisors in addition to
the employees as it has been found out that agents are the best channel to reach the
general public regarding selling of insurance products. The private and foreign insurance
companies have to concentrate on thefactors like 'Prevention of Loss', 'Assured Returns'
and 'Long term Investment'. They can alsofocus on an insurance amount of Rs. 1 2
lakhs with 'money back policies'. Hence, the markethas potential. The private and foreign
insurance companies that are taking immediate steps cantap it easily & rapidly.1
RECOMMENDATIONS

RECOMMENDATIONS
1) Even though most of the policy holders are satisfied with policies, plans they have but
somenew attractive insurance plans should be introduce to bind them not to switch over
to other companies insurance plans.2) The company should find out the no. of people
who are not having any of the insurance plansthrough an intensive market research and
motivate them to get insured.3) Leveraging technology to service customers quickly,
efficiently and conveniently.4) Developing and implementing superior risk management
and investment strategies to offer sustainable and stable returns to our policyholders.5)
Company should target each and every class of the society6) Company should provide
full information to the customers before targeting so they can takeinterest.
BIBLIOGRAPHY
Books :

Kothari C.R. (1990) Research Methodology : Method and Techniques, WishvaParkashan,

New Delhi. PP115-117

Bodie. Z, Kane. A & Marcus. J : Essentials of Investments PP242-243

Websites :

http://www.economywatch.com/indianeconomy/indian-insurance-sector.html

www.birlasunlife.com/birlasunlife/insurance/bsli.../index5.aspx

http://www.indianmba.com/Occasional_Papers/OP85/op85.html


http://www.banknetindia.com/finance/insure2011.htm

http://www.financialexpress.com/news/the-indian-insurance-sector-ii/181428/
Journals :

Lect. D.ramkumar(2003), Relationship Marketing The new tantra for life

insurancesector. Department Of Management Studies, N.M.S.S. Vallaichamy Nadir
College, Nagamalai, Madurai 625019 available
athttp://www.google.co.in/interstitial
?url=http://www.indiaschools.com/marketing_029.htm last accessed on 07-08-2009.

Dr. Ch.rajesham (2004), changing scenario of india insurance sector, department of

commerce & Business Management, University P G college, Kakatiya
UniversityKhammam, Andhra Pradesh available
athttp://www.insuranceinstituteofindia.com/insuranceinst/publication/uploads/journaljan- jun-04/chapter10..pdf last accessed on 14-08-2009

J.Mehra (2005), innovations in life insurance industry, the financial express, new
delhiavailable athttp://www.financialexpress.com/news/innovations-in-life-insuranceindustrylast accessed on 15-08-2009.5

ANNEXURE
Questionnaire
Name:............................... Age:..Occupation:..Ques.1
Which Birla Sun Life Scheme do you have?Health

Retirement

Life

Health

Retirement

Life

Ques.2 Are you satisfied with the Insurance plan you have?(a) Yes

(b) No

Ques.3 what attract you towards Birla Sun Life Plans?(a)(b)(c)(d)Ques.4 Are you
satisfied with the services provided by the companyRegarding new plans and schemes?
(a) Yes

(b) No

Ques.5 Are you interested to make more investments in Birla Sun Life ?(a) Yes

(b) No

Ques.6 Have you any other Insurance Plan apart from Birla Sun Life?(a) Yes

(b) No

Ques.7 If yes, then of which Life Insurance Company?(a) LIC

(b) Bajaj Allianz

(c) Birla Sunlife

(d) Reliance

(e) Others

1
Ques.8 If you get any attractive plan than are you ready to switch over?(a) Yes

(b) No

Ques.9 If you get any attractive plan than are you ready to switch over?(a) Yes

(b) No

Suggestions: