Pension Plan

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI
CHAPTER NO: - 1 INSURANCE

1.1 Introduction
Insurance = collective bearing of risk Insurance is nothing but a system of spreading the risk of one onto the shoulders of many. While it becomes somewhat impossible for a man to bear by himself 100% loss to his own property or interest arising out of an unforeseen contingency, insurance is a method or process which distributes the burden of the loss on a number of persons within the group formed for this particular purpose. Basic human trait is too adverse to the idea of risk taking. Insurance, whether life or non-life provides people with a reasonable degree of security and assurance that they will be protected in the event of a calamity or failure of any sort. Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea. Death and accidents and burglary. Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance. Insurance Indemnifies Assets & Income Every asset has a value and generates income to its owner. There is a normally expected Life-time for the asset during which time it is expected to perform. If the asset gets lost earlier, being destroyed or made non-functional through an accident or other unfortunate event the owner is prejudiced. Insurance helps to reduce CONSEQUENCES of such adverse circumstances which are called risks. Insurance is the science of spreading of the risk
PENSION PLAN WITH RESPECT TO AXIS BANK & SBI It is the system of spreading the losses of an individual over a group of individuals insurance is a method of sharing of financial losses of a few from a common fund formed out of contribution of the many who are equally exposed to the same loss. What is uncertainty for an individual becomes a certainty for a group. This is the basis of all insurance operations. Thus insurance convert uncertainties to certainty.
1.2Definition
The definition of insurance can be made from two points: Functional definition. Contractual definition.
Functional definition
Insurance is a co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to insure themselves against the risk. General definition Insurance has been defined to be that in which a sum of money as a premium is paid in consideration of the insurers incurring the risk of paying a large sum upon a given contingency. In the words of John Magee, insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risks that attach to individuals. Fundamental Definition In the words of D.S. Hansell, Insurance accumulated contributions of all parties participating in the scheme. Contractual definition
PENSION PLAN WITH RESPECT TO AXIS BANK & SBI In the words of justice Tindall, Insurance is a contract in which a sum of money is paid to the assured as consideration of insurers incurring the risk of paying a large sum upon a given contingency.
1.3 Functions of Insurance

The functions of Insurance can be bifurcated into three parts: 1. 2. 3. Primary Functions Secondary Functions Other Functions The primary functions of insurance include the following: Provide protection
The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk,but can certainly provide for the losses of risk. Collective bearing of risk
Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid. Assessment of risk
Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also. Provide Certainty
Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain. Research and publicity
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Insurers also spend money in research and publicity in creating risk consciousness amongst which has a far reaching effect on reduction in national waste.
The secondary functions of insurance include the following: Prevention of losses
Prevention of losses causes lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured. Small capital to cover larger risks
Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty. Contributes towards the development of larger industries
Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery. It improves efficiency
The insurance eliminates worries and miseries of loans at death and destruction of property. The carefree person can devote his body and soul together for better achievement. It improves not only his efficiency, but the efficiencies of the masses are also advanced. It helps economic progress
The insurance by protecting the society from huge losses of damage, destruction and death, provides an initiative to work hard for the betterment of the masses. The next factor of economic progress the capital is also immensely provided by the masses. The property, the valuable assets, the machine and the society cannot lose much at the disaster.
The other functions of insurance include the following: Means of savings and investment
Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insureds for the purpose of availing income-tax exemptions also, people invest in insurance. Source of earning foreign exchange
Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways. Risk free trade
Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover.
1.4 Categories of Insurance

The following major categories are important 1. LIFE 2. HEALTH MEDICAL 3. GENERAL
GENERAL INSURANCE CORPORATION:
HEALTH MEDICAL
GENERAL
MUTUAL FUND RETURN & RISK COVERAGE PARTIALLY
GIC (GENERAL INSURANCE CORPORATION)
1.
LIFE INSURANCE CORPORATION:

LIFE
TERM INSURANCE
ENDOWMENT
WHOLE LIFE
PENSION/ ANNUITY CONTRACTS WITH PROFITS OR WITHOUT PROFITS FOR FIXED AMOUNTS ON MATURITY
(LIC) (LIFE INSURANCE CORPORATION) Various types of life insurance policies: Endowment policies: This type of policy covers risk for a specified period, and at
the end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy. Money back policies: This type of policy is for periodic payments of partial survival benefits during the term of the policy as long as the policy holder is alive. Group insurance: This type of insurance offers life insurance protection under
group policies to various groups such as employers-employees, professionals, co-operatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost. Term life insurance policies: This type of insurance covers risk only during the selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger premium required for endowment and whole life policies. No surrender, loan or paid up values are in such policies.
PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Whole life insurance policies: This type of policy runs as long as the policyholder
is alive and is covered for the entire life of the policyholder. In this policy the insured amount and the bonus is payable only to nominee on the death of policy holder. Joint life insurance policies: These policies are similar to endowment policies in
maturity benefits and risk cover, but joint life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy.
Pension plan: A pension plan or annuity is an investment over a certain number of
years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period. Unit linked insurance plan: ULIP is a kind of insurance plan which provides life
cover as well as return on premium paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV).
1.5 Functioning of Insurance Industry:

Insurers business model: Profit = earned premium + investment income - incurred loss - underwriting expenses Insurers make money in two ways: (1) through underwriting, the processes by which insurers select the risks to insure and decide how much in premiums to charge for accepting those risks and (2) by investing the premiums they collect from insured. The most difficult aspect of the insurance business is the underwriting of policies. Using a wide assortment of data, insurers predict the likelihood that a claim will be made against their policies and price products accordingly. To this end, insurers use actuarial science to quantify the risks they are willing to assume and the premium they will charge to assume them. Data is analyzed to fairly accurately project the rate of future claims based on a given risk. Actuarial science uses statistics and probability to analyze the risks associated with the
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI range of perils covered, and these scientific principles are used to determine an insurer's overall exposure. Upon termination of a given policy, the amount of premium collected and the investment gains thereon minus the amount paid out in claims is the insurer's underwriting profit on that policy. An insurer's underwriting performance is measured in its combined ratio. The loss ratio (incurred losses and loss-adjustment expenses divided by net earned premium) is added to the expense ratio (underwriting expenses divided by net premium written) to determine the company's combined ratio. The combined ratio is a reflection of the company's overall underwriting profitability. A combined ratio of less than 100 percent indicates underwriting profitability, while anything over 100 indicates an underwriting loss. Insurance companies also earn investment profits on float. Float or available reserve is the amount of money, at hand at any given moment that an insurer has collected in insurance premiums but has not been paid out in claims. Insurers start investing insurance premiums as soon as they are collected and continue to earn interest on them until claims are paid out. Naturally, the float method is difficult to carry out in an economically depressed period. Bear markets do cause insurers to shift away from investments and to toughen up their underwriting standards. So a poor economy generally means high insurance premiums. This tendency to swing between profitable and unprofitable periods over time is commonly known as the "underwriting" or insurance cycle. Finally, claims and loss handling is the materialized utility of insurance. In managing the claims-handling function, insurers seek to balance the elements of customer satisfaction, administrative handling expenses, and claims overpayment leakages.
Investment management: Investment operations are often considered incidental to the business of insurance, and have traditionally viewed as secondary to underwriting. In the past risk management was the most important part of business, whereas today the focus has shifted to fund management. Investment income is a large component of insurance revenues, skilful and careful management of funds. Insurance is a business of large numbers and generates huge amount
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI of funds over time. These funds arise out of policyholder funds in the case of life insurance, and technical and free reserves in the non-life segments. Time lag between the procurement of premium and the payment of claim provides an interval during which the funds can be deployed to generate income. Insurance companies are among the largest institutional investors in the world. Assets managed by insurance companies are estimated to account for over 40% of the worlds top ten asset managers.
Returns on investments influence the premium rates and bonuses and hence investment income will continue to be an important component of insurance company profits. In life insurance, benefits from insurance profits accrue directly to policy holders when it is passed on to him in the form of a bonus. In non life insurance the benefits are indirect and mostly by the creation of an investment portfolio. Investment income has to compensate for underwriting results which are increasingly under pressure. In the case of insurance, the difference between revenue and the expenses is known as operating surplus. Revenue = premium. Expenses = sum of claims + commission payable on procurement of business + operating expenses. Operating surplus = revenue-expenses.
Net investment income includes income from trading in and holding stock market securities including government securities, special deposits with the central government, loans to several public utilities and service providers in state government. Insurance premium collected is converted in a pool of fund then divided in to four expenses. To pay the expenses of the management. To pay agency commission. To pay for the claims. Surplus money will be invested in govt. securities.
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Requirements of an insurance risk Insurance normally insure only pure risks .However, not all pure risk is insurable .certain requirements usually must be fulfilled before a pure risk can be privately insured .From the view point of the insurer, there are ideally six requirement of an insurable risk
There must be a large number of exposure units The loss must be accidental and unintentional. The loss must be determinable and measurable. The loss should not be catastrophic. The chance of loss must be calculable. The premium must be economically feasible
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CHAPTER NO: - 2 LIFE INSURANCE

2.1 Meaning & Role
Life insurance is a contract under which the insurer (Insurance Company) in consideration of a premium paid undertakes to pay a fixed sum of money on the death of the insured or on the expiry of a specified period of time whichever is earlier. In case of life insurance, the payment for life insurance policy is certain. The Event insured against is sure to happen only the time of its happening is not known. So life insurance is known as Life Assurance. The subject matter of insurance is life of human being. Life insurance provides risk coverage to the life of a person. On death of the person insurance offers protection against loss of income and compensate the titleholders of the policy. Life insurance products fundamentally provide for a. b. c. Risk Cover Investment Health Cover
ROLES OF LIFE INSURANCE:

Life insurance as an investment: - Insurance products yield more than any other
investment instruments and it also provides added incentives or bonus offered by insurance companies. Life insurance as risk cover: - Insurance is all about risk cover and protection of Life insurance as tax planning: - Insurance serves as an excellent tax saving
life. Insurance provides a unique sense of security that no other form of invest can provide. mechanism too.
2.2 Need for Life Insurance

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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI The above definition captures the original, basic, and intention of life insurance: i.e. to provide for ones family and perhaps others in the event of death, especially premature death. Originally, policies were to provide for short periods of time, covering temporary risk situations, such as sea voyages. As life insurance becomes more established, it was realized what a useful tool it was for a number of situation including: Temporary needs/ threats: The original purpose of life insurance remains an important element, namely providing for replacement of income on death etc.
Regular Savings: Providing for ones family and oneself, as a medium to long-term exercise (through a
series of regular payment of premiums). This has become more relevant in recent times as people seek financial independence from their family. Investment: Put simply, the building up of savings while safeguarding it from the ravages of inflation. Unlike regular saving products, investment products are traditionally lump sum investments, where the individual makes a one-time payment. Retirement: Provision for ones own later years become increasing necessary, especially in a changing culture and social environment. One can buy a suitable insurance policy, which will provide periodical payments in ones old age. This simple example illustrates the impact premature death can have on a family, where the main earner has no life cover. A simple life insurance policy (term assurance) could have provided Mr. Atuls family with a lump sum that could have been invested to provide an income equal to all or part of his income. We will discuss how to analyze the need for life cover and the value of life later in the course.
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2.3 Benefits from Life Insurance
It is superior to a traditional saving vehicles: As well as providing a secure vehicle to build up saving s etc, its provides peace of
mind to the policyholder. In the event of untimely death, of say the main earner in the family, the policy will pay out of the guaranteed sum assured, which is likely to be significant more than the total premiums paid. With more traditional savings vehicles, such as fixed deposits, the only return would be the amount invested plus any interest accrued. It encourages saving and forces thrift: Once an insurance contract has been entered into, the insured has an obligation to continue paying premiums, until the end of the term of the policy, otherwise the policy will lapse. In other words, it becomes compulsory for the insured to save regularly and spend wisely. In contrast savings held in a deposit account can be accessed or stopped easily. It provides easy settlement and protection against creditors: Once a person is appointed for receiving the benefits (nomination) or a transfer of rights is made (assignment), a claim under the life insurance contract can be settled easily. In addition, creditors have no rights to any monies paid out by the insurer, where the policy is written under trust. Under the Married Womens Property Act (M.W.Act), the money available from the policy forms a kind of trust, which creditors cannot claim on. It helps to achieve the purpose of the Life Assured: If someone receives a large sum of money, it is possible that they may spend the money unwisely or in a speculative way. To overcome this, the person taking the policy can instruct the insurer that the claim amount is given in installments. For example, if the total amount to be received by the dependents is Rs. 2, 00,000 say Rs.50, 000 can be taken out as a lump sum and the balance paid out in smaller installments, say Rs. 5,000 per month.
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It can be enchased and facilitates borrowing: Some contracts may allow the policy can be surrendered for a cash amount, if a
policyholder is not in a position to pay the premium. A loan, against certain policies, can be taken for a temporary period to tide over the difficulty; some lending institutions will accept a life insurance policy as collateral for a personal or commercial loan. Tax Relief: The policyholders obtain Income Tax rebates by paying the insurance premium. The specified forms of saving which enjoy a tax rebate, under section 88 of the Income Tax Act, include Life Insurance Premiums and contributions to a recognized Provident Fund etc.
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CHAPTER NO :- 3 PENSION PLAN
3.1 Need for Pension Plan

Pension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. These policies are most suited for senior citizens and those planning a secure future, so that you never give up on the best things in life.
Pension plan is nothing but the retirement plan, it has to be decided on why, when and how to start a retirement planning.
Most of you picture yourselves enjoying the fruits of labor after retirement, going on your dream vacation, or helping your children's career take wing. But do you realise that financing all this will most likely depend partly on your personal savings? Because personal savings and investments represent a significant source of retirement income for many people, you can never save too much.
Currently, you are at a stage where you are juggling many roles, as nurturing parents, dutiful caregivers to elders, supportive life partners, while trying to maintain a career. It is too easy to get carried away handling and solving the day-to-day problems to not look into your retirement needs. It may also seem too far away to be of concern. But a look at the issues below will make the need for some strategic planning at this stage amply clear.
Today, thanks to a healthier lifestyle and advances in medicine, the average Indian lives longer. This makes the challenge of accumulating enough money for retirement even more difficult, since it may have to last longer. Also, with the falling interest rate scenario and the
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI rising costs of medical expenses retirement mean monetary uncertainty for most of us. More so, because there is also the ever-persistent evil of inflation, which erodes your purchasing power. The graph below illustrates how much Rupees will 10,000/- amount to after some years:
Therefore, the message is simple - no matter whether you are 30 or 50, you should start planning early to have a healthy retirement kitty. (See graph below for an illustration)
As can be seen the cost of delaying is high. Situation A is when you are saving Rs 10000 annually from the age of 25 to 34 years and Situation B is when you save the same annual
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI amount from the age of 35 to 59 years. As can be seen in the example, even after investing your money for a 2.5 times longer duration, the maturity value in the second case is much lesser (the figures are based on a hypothetical interest rate of 10%). The longer your money is allowed to grow at a compounded rate, the more dramatic will the difference be eventually. Therefore, the message is simple - Put Time On Your Side and Start Early. This is the reason why people go for pension plan (Annuities).
3.2 Tax Benefits Related To Pension Plans: Section Brief of Section Income Tax Act Overview
Any sum received by a policyholder under a life For Life Insurance insurance policy (including bonus declared on the 10 (10D) benefits as Maturity/ Claims/Bonuses insurance policy) is exempt from tax. # Death Claims are tax Free. # However, any sum received under Key person Insurance policy is not exempt from tax and is taxable. Income from pension fund set up by any life insurance company under a pension scheme, which the controller of insurance approves, is exempt from income tax. A policy holder is allowed deduction under from his total income of an amount not exceeding Rs. 1,00,000/Section which gives eligibility to a taxpayer for premium paid. Other investments defined by govt. of India also come under this section. The aggregate amount of deduction u/s 80CCC, and section 80CCD shall not, in any case exceed one lac rupees. Exemption in respect of commutation of pension
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For Pension Schemes For Pension Schemes
80 CCC
80 C
For Life Insurance deduction from total gross income on the life insurance premiums paid
80CCE
For Overall Deduction Limit For Pension Schemes
10(10A)(iii)
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3.3 Products of Pension Plans

There are various types of Pension plans, where there are two types of products, they are: 1. 2. INDIVIDUAL PRODUCTS GROUP PRODUCTS
1.
INDIVIDUAL PRODUCTS:
ANNUITIES Annuities are a form of pension in which an insurance company makes a series of periodic payments to a person (annuitant) or his or her dependents over a number of years (term), in return for the money paid to the insurance company either in a lump sum or in installments. Annuities start where life insurance ends. It is called the reverse of life insurance. Annuity stops on death of a person, whereas theoretically, life insurance starts on death of the assured.
Annuities are of two types:Immediate Annuity: Immediate Annuity begins at once or immediately on expiry of the designated period. Immediate Annuity is purchased with a single premium called purchase price. The type of annuity is typically purchased when a person reaches retirement age and has a lump sum to invest. If the person buying the annuity dies during the term, his legal heirs or nominees get the remaining installments of the annuity.
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Deferred Annuity: Under a deferred annuity plan, the annuity payments to annuitant commence at some specified time or specified age of the annuitant. This type of annuity can be funded either by a single payment or a series payment or a series of regular payments. The annuity payment starts after the lapses of a selected period called deferment period.
2. GROUP PRODUCTS: An insurance policy taken out by an individual is a case of individual insurance. In such a case, the risk covered is on an individual life. The premium payable is decided individually for each policyholder depending on various factors such as age, health etc. Group insurance is a plan of insurance which covers a similar or homogeneous group of individuals under a single policy called a Master Policy. The party with whom the insurer enters into a contract may be an employer, a labour union or a voluntary association. The individuals covered in the Group Insurance Scheme are not parties to contract. The amount and the terms of insurance are negotiated by the group policyholder only.
Group products of pension are: a. Group gratuity scheme:
Gratuity is a contribution made by the company towards pension benefits of an employee. It is available to an employee on: Retirement Cessation of service
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Event of death
Gratuity is a non-contributory fund in which only the employer gives money. Gratuity payment as such does not come under the purview of insurance business. However, group insurance is linked with gratuity and the scheme marketed by life insurance companies is called Group Gratuity-cum-Life Assurance scheme. The payment of gratuity is compulsory under the payment of gratuity Act, 1972. The employer may pay gratuity to his employees As and when it falls due out of his revenues. Out of internal reserves Out of a trust set up for the purpose of administering the funds itself. Out of a trust and the trustee may opt for a scheme of insurance with the insurance
with the insurance company. The group gratuity scheme with an insurance company enables the employers to provide for larger gratuity payment for employees who die in service.
b.
Group superannuation Superannuation is a contribution made by the company towards pension benefits of
an employee. It is available to an employee on Attainment of a certain age. Retirement Cessation of service Event of death The employer can pay the pension benefits as and when they fall due or he can set up a trust fund for provision of pension. The trustees can enter into a Group Superannuation with the insurance company, whereby the responsibility of administering and managing the
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI fund is passed on to the insurance company. A Group Insurance Scheme can be arranged along with the superannuation scheme, whereby the pension benefits can be much higher even in the case of premature death. Under the Income Tax Act,
Superannuation contributions by the employer are tax-exempt up to 15 % of the annual salary. And a superannuation fund may either be self-managed or a life insurance company could manage it. Not many employees are yet enrolled in such schemes.
c.
Group Annuity Schemes Annuity taken for a group is known as a Group Annuity Scheme. Under such
schemes, employers who manage their own superannuation or pension schemes can purchase annuities from the insurance companies as and when they have to release the pensions to the employees. After purchase, the Annuities will be paid directly by the insurance companies to the pensioners.
CHAPTER NO: - 4 COMPANY PROFILE
4.1 Axis Bank

Axis Bank was established in 1993 and was the first private sector bank to start operations after the Government of India allowed entry of private banks. Previously called UTI Bank, Axis Bank was promoted by Unit Trust of India (UTI-I), Life Insurance corporation of India (LIC), General Insurance Corporation (GIC) and its four subsidiaries, New India Assurance Company, Oriental Insurance Corporation, National Insurance Company and United Insurance Company. The name of the Bank was changed in 2007 as there was brand confusion because many unrelated shareholder entities such as UTI Securities, UTI Technological Service and UTI Investor Services were also sharing the UTI brand. Moreover, the name was changed to connote stability and solidarity as well as was in line
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI with the banks expanding operations across geographical boundaries. Staring with one branch in Ahmadabad in 1994, the bank now has 835 branches including extension networks (31st March 2009) across 30 States and 4 Union Territories. The bank also has overseas offices in Singapore, China, Hong Kong and Dubai. Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. Axis Bank is one of the fastest growing private sector banks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence. Axis Bank is one of the few banks in India that have built up a fully integrated centralized banking architecture to offer banking services anywhere, anytime. At the end of March 2008, the Bank increased its reach to 433 cities, towns and villages across the country through 713 Branches & Extension Counters and 2904 ATMs. The Bank offers a complete range of retail and corporate services, including retail loans, corporate and business credit, foreign exchange and trade finance services, investment banking, depository services and investment advisory services. Their deposit base as on 30th June 2008 stands at Rs. 88,973 crores with over 85 lakh [8.5 million] accounts. Axis Bank is uniquely positioned to harness the high growth opportunity in India. Axis Bank has always endeavored to bring a sharper focus to the requirements of their customers and strived to leverage cutting-edge technology to provide the highest levels of service to them.
4.2 MetLife Insurance Company

MetLife Insurance is a prime mover in the India's insurance market. MetLife insurance: MetLife India Insurance Company Limited is an affiliate of MetLife, Inc.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI and was incorporated as a joint venture between MetLife International Holdings, Inc. and the Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It offers a range of innovative products to individuals and group customers at more than 600 locations through its bank partners and company-owned offices. MetLife has more than 32,000 Financial Advisors. It has approximately 70 million customers all over world. MetLife is working on the base of six core values Innovation Long term relationship Customer centered and result focused vision Creating high performance organization Working with integrity, fairness and financial prudence partnering with internal and external customers.
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4.3 SBI & SBI Life Insurance

SBI Life Insurance, Indias largest private life insurance, is a joint venture between State Bank of India and BNP Paribas Assurance SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI Life Insurance has an authorized capital of Rs. 2,000 crore and a paid up capital of Rs 1,000 crores. BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zones leading Bank. BNP Paribas, part of the worlds top 10 groups of banks by market value and part of Europe top 3 banking companies, is one of the oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly through the banassurance and partnership model. SBI Life Insurances mission is to emerge as the leading company offering a comprehensive range of Life Insurance and pension products at competitive prices, ensuring high standards of customer service and world class operating efficiency. SBI Life has a unique multi-distribution model encompassing Banc assurance, Agency and Corporate Solutions. Agency Channel, comprising of the most productive force of over 68,000 Insurance Advisors, offers door to door insurance solutions to customers.
SBI Lifes Key Accomplishments:

Bagged the coveted personal finance award-Outlook Money NDTV Profit best Life Insurer 2008. Globally topped at the prestigious MDRT 09, in terms of number of Million Dollar Round Table (MDRT) members. First life insurer to receive CRISILs highest financial rating AAA/Stable. ICRA too has assigned iAAA rating indicating highest claims paying ability to SBI Life
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Insurance. Retains ISO 9001:2000 certificate for superior claim settlement process.
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CHAPTER NO: - 5 COMPARISON BETWEEN DIFFERENT PENSION PRODUCTS OF AXIS BANK AND SBI
5.1Axis Bank Pension Products

Axis bank offers the Insurance products of Met Life Insurance Company Ltd., in which the pension plan products are Individual Products: i. ii. Met Growth Met Advantage Plus In these policies, the investment risk in investment portfolio is borne by the policy holder. Met Growth: It is specially designed to provide financial security for your future requirements. This plan allows you to start planning immediately by ensuring the safety of your first year premiums. It also helps create your retirement fund faster by giving you 100% allocation from the second year onwards, coupled with attractive loyalty additions into your fund.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Met Advantage Plus: As the name suggests, it comes with many advantages. You can choose from eight annuity options, two life cover options and get tax benefits under Section 80 C and 10 (10 A). You can buy the plan without any hassles and invest more as you approach retirement by using the top-up functionality. All in all, its a plan which works harder for you when you stop working. For one, it ensures that you lead a comfortable lifestyle post retirement.
GROUP PRODUCTS Axis bank dont provide with the Group Insurance Schemes of MetLife Insurance Co.
5.2 SBI Life Pension Products SBI & SBI Life Insurance:
SBI Life Insurance is a joint venture between the State Bank of India and BNP Paribas Assurance. State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate Banks, BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zones leading Bank. BNP Paribas, part of the worlds top 10 group of banks by market value and part of Europe top 3 banking companies, is one of the oldest foreign banks. SBI has its own Life insurance products, in which they offer the following pension plan products: Individual Products
i.
SBI Life - Horizon II Pension (ULIP) SBI Life - Unit Plus II Pension plan (ULIP) SBI Life - Immediate Annuity SBI Life Lifelong pension In the policies SBI Life - Horizon II Pension, SBI Life - Unit Plus II Pension plan, the investment risk in investment portfolio is borne by the policy holder.
ii.
iii. iv.
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i.
SBI Life - Horizon II Pension SBI Life - Horizon II Pension is a safe and a hassle free way to get high returns! SBI Life
- Horizon II Pension comes with the unique feature of Automatic Asset Allocation by means of which you truly, dont need to be an expert to grow your money!
ii.
SBI Life - Unit Plus II Pension plan SBI Life - Unit Plus II Pension is a non participating single or regular premium unit linked insurance plan, which helps to build up a kitty retirement to take care of post retirement needs.
SBI Life - Unit Plus II Pension plan makes sure that you have regular income after you retire and also helps you to maintain your standard of living. This is a unit linked pension plan wherein the policyholder chooses an investment period from 5 to 52 years for a vesting age between 50 to 70 years. You can choose to pay either single premium or pay regular premium for the entire policy term. Your contributions are invested into 5 fund options as per your choice.
iii.
SBI Life - Immediate Annuity This product provides annuity payments immediately from payment of purchase price. It
has been specially designed to cater to the annuity needs of our existing policyholders (SBI Life - Lifelong Pensions, SBI Life - Horizon II Pension, SBI Life - Unit Plus II Pension) at the vesting age.
iv.
SBI Life Lifelong pension This plan helps to satisfy your needs after retirement. Although retired you still have the
finance to fulfill your desires. It is a regular pension product.
GROUP PRODUCTS
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Axis bank dont provide with the Group Insurance Schemes of MetLife Insurance Co. The group insurance schemes which provides various benefits as stated in the previous chapters of this report, the SBI has also taken measures to satisfy the customers needs by introducing Group Insurance Schemes. SBI life group solutions offer an integrated basket of employee benefit plans. It caters to both statutory as well as voluntary needs of the employees. SBI Life Insurance has seven Group Insurance pension schemes.
i. ii. iii. iv. v. vi. vii.
SBI Life CapAssure Gratuity Scheme SBI Life CapAssure Superannuation Scheme SBI Life CapAssure Leave Encashment Scheme SBI Life Dhanrashi SBI Life Swarna Jeevan SBI Life Swarna Ganga SBI Life Kalyan ULIPTM
Kalyan ULIPTM: It is a non-participating; unit linked Group Insurance Scheme. It is truly unique with its variety of features that benefit not only the master policyholder but also to each Group Member.
INVESTMENT PHILOSOPHY FOR NON-LINKED PENSION PLANS: SBI Lifes Investment Management Objective stands on stability and growth of the portfolio. Our investment Management Framework works with safety and transparency in mind. The safety you deserve:
All investment made by SBI Life are monitored by an in-house Investment Sub Committee and reviewed on semi-annual basis by the Board.
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Our investment operations are periodic supervision by IRDA.
The transparency you look for:
Disclosure of portfolio composition at regular intervals with details of contributions received, interest credited, settlements made, and balances as on renewal date. The actual performance as well as the holdings are shared on the 31st of March every year and can be made available at any time on request.
Fund Performance for the Year Gross Returns declared on SBIs Non-Linked Gratuity and Group Pension Funds Financial Year 2005-06 2004-05 2003-04 Gross Returns Declared 12.30% 11.67% 13.00%
The following article based on SBI Life Insurances Group Insurance Schemes can give us the idea about performance of these plans in the market as a whole. It was published in the Business Standard on September 30, 2007. Currently managing a portfolio of whopping 6 million lives, SBI Life is set to maintain its leadership in Group Lives coverage. So far this financial year, SBI Life has already covered more than 8 lacs group lives with an additional 2.5 lacs lives through individual policies. SBI Life is now the fastest growing life insurance company, with New Premiums growing at a scorching 264% (YTD) basis, from Rs. 275 crores to 1000 crores
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI and Total Premiums keeping pace, growing at 211% from Rs. 370 crores to Rs. 1150 crores. A strong growth across all its channels namely Bancassurance, Agency Channel and Group Corporate is the major attributing factor for SBI Lifes exponential business growth. While sharing its aggressive plans, SBI Life also announced the infusion of additional fresh capital of Rs. 75 crores to take its capital base up to its authorized share capital limit of Rs. 500 crores. Speaking on the occasion, Mr. S. Krishnamurthy, MD and CEO, SBI Life Insurance said, The additional capital has been injected to maintain stipulated solvency margins for the exponential new business growth and expanding branch network He added, This growth has come primarily on account of our multi-channel business model coupled with a balanced mix of savings and protection products. SBI Life currently has the largest and most robust Bancassurance network complimenting the most productive and active Insurance Advisor force of Agency Channel in the country. SBI Life today also unveiled the new Horizon II Pension Product, a unit linked pension product aimed at offering greater retirement security to investors and retirees alike. It offers investors the opportunity for long-term capital appreciation through exposure to the markets and investment expertise of SBI Life. The uniqueness of the product stems from the proprietary Automatic Asset Allocation (AAA), an algorithm-based active investment allocation mechanism, which is currently offered exclusively by SBI Life in India. This IT based system developed by testing over 5000 potential scenarios in the Indian equity & bond markets, determines the optimal risk return combination. Higher exposure to equities for the initial years, followed by increasing exposure to debt and money markets as the pension plan nears maturity, is automatically allocated by the AAA mechanism, to ensure better returns for investors. Speaking at the event, Mr. Pier-Paolo Dipaola, Dy. CEO, SBI Life Insurance said, The unique Automatic Asset Allocation feature makes Horizon II Pension an ideal retirement solution for many evolving Indian investors who do neither have the time nor the expertise to make fund allocation decisions on an on-going basis.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI He added, Today with disintegration of joint family system, increasing life expectancy rate, rising medical costs and lack of social security system, the need for retirement planning is very acute for the Indian investors. The Horizon II Pension provides Indian investors with the required long-term benefits of exposure to equity markets, while empowering them to lead the desired lifestyle post-retirement. The uniqueness of Horizon II Pension is a combination of Systematic Investment Planning concept with periodical automatic relocation of assets based on the plan option and remaining term to maturity. In a certain way, policyholders retirement funds benefits from markets returns during the initial years while ensuring safety at the time of maturity. The other attractive feature of Horizon II Pension is the availability of optional life cover. In addition, the maximum premium allocation charge for the first year is capped at Rs. 60,000, for second and third year - Rs.40000 and from fourth year to tenth year Rs.10000 making Horizon II Pension a lucrative low-charge investment option for High Net worth Individual (HNI) investors. The premium allocation charges, top up allocation charges are surrender charges are zero from 11th year onwards. Horizon and new ULIP guidelines compliant Horizon II enjoy a strong patronage of more than 90,000 customers. SBI Life has rapidly expanded its operations this year to strengthen its unique multidistribution network. The company now is leveraging the 14,500-strong SBI Group branch network from where SBI Life products are currently available. SBI Life also has increased its own branch network from 68 branches as March, 2006 to 95 as on December, 2006. While the number of Life Insurance Advisors recruitment has gone up by more than double from 8000 as on March, 2006 to 18,525 as on December, 2006. The two other channels of Group Insurance & Credit Life have also been showing significant growth. The above article and the number of pension plans offered by both the companies can give us the idea that SBI Life insurance is on a growth stage and planning for future expansion for the promotion of life insurance products.
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5.3 Comparison Between Unit Linked Pension Plans Of MetLife & SBI Life
Unit linked business which is driving the growth of premiums over the last 2-3 years. While the private players have taken the lead in this segment, LIC has also made strong strides in the sale of ULIPs during the last three years. Despite the growing popularity of ULIPs it remains a fact that the policy holders rely heavily on the advice rendered by the distributors. The complicated design of the policies makes them less aware of the product features and chances of mis-selling by agents are high. To protect the interest of the customers, IRDA has taken the following initiatives. Issuance of comprehensive ULIP guidelines in 2005 which mandate minimum risk cover, three year lock-in, usage of simple language, proper disclosures, standard method of computing NAV etc. Insurers to make projections of return as per the guidelines of Life Insurance Council. To ensure transparency, IRDA has directed the insurers to list all charges that the policyholder has to bear along with the amount available for investment in each year specific to each policy. IRDA has also stipulated that policyholders would have to sign a document stating that they have understood the terms and conditions of the policy before concluding the sale. The customer can also use 15 days free look period in case he is not satisfied with the terms and conditions of the policy. To remove complexity in unit linked products IRDA has advised the insurers to phase out some of the actuarially funded ULIPs. Worldwide, Unit linked products have been seen as attractive- in view of the flexibility and investment options they offer to the customers and the capital efficiency to the companies. After the market crash of 2001, customers started looking for more security and guarantees in the unit linked products. Adding guarantees to unit linked products has been common in
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Europe, North America and Japan. The unit linked market though new in Asia is growing steadily in countries like Korea, Taiwan and South East Asia. Variable Annuity products are slowly emerging in these markets and from the customer point of view are quite attractive, especially when they provide guarantees on pension savings. In India, the long-standing debate over the suitability of Unit Linked Insurance Plan (ULIP) and mutual funds can be resolved better with a proper understanding of the need of the investor. Mutual funds are essentially short to medium term products. ULIPs, in contrast, are positioned as long-term products with an element of life cover. It is pertinent to note that exposure of Indian households to capital markets is limited. It is important for an investor to understand his financial goals and horizon of investment in order to make an informed investment decision. With respect to retirement planning, set of variables considered are:
The clients age is 38 years and he would like to retire 22 years hence i.e. at the age of 60 years The client would like to invest an amount of Rs 1,000,000 (Rs.1 m) each year for three years. In total, he will invest an amount of Rs 3 m over 3 years.
The client has been suggested a single premium plan of Rs.1 m with additional topups worth Rs 1 m p.a. (per annum) for the following two years. In all, the client would be paying Rs 3 m over the 3-yr period.
The client has a high-risk appetite and would like to remain invested in equities throughout the tenure of the pension plan.
The client has a well-diversified portfolio including mutual funds and stocks.
Based on the information, investments in the unit linked pension plan (ULPP): Pension plan: Preparing for the future Investment amt (Rs) 1,000,000 One-time 2.50 Admn. Fund Mngt 180 0.80 Investment Net maturity Value (Rs) 18,400,000
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charge (%) Charges (Rs)* Charges (%) Tenure (Yrs) 22
PENSION PLAN WITH RESPECT TO AXIS BANK & SBI 1,000,000 1,000,000 2.50 1.00 180 180 0.80 0.80 21 20
*Administration charges are subject to 5.00% inflation per annum.
Investments in unit linked pension plan (ULPP) : If the client decides to buy the pension plan, then he would be paying Rs 1,000,000 in the first year. Since this is a single premium plan, one-time charges on the same are 2.50% (i.e. in the first year). In other words, Rs 25,000 would be deducted from the clients single premium amount and the remaining amount (i.e. Rs 975,000) would be invested in the 100% equity ULPP option. This amount will remain invested for the entire 22-yr tenure. The charges for any additional top-ups in the second year too would be to the tune of 2.50%. Similar to the first year, Rs 25,000 would be deducted from the second years top-up amount. So Rs 975,000 would be invested over 21 years. One-time charges for any top-ups from the third year onwards fall to 1% for the year. Therefore, only Rs 10,000 (i.e. 1% of Rs 1,000,000) would be deducted and the remaining amount would be invested. The third year amount (Rs 990,000) will remain invested for a 20-yr period (i.e. time to maturity). Fund management charges (FMC) for managing equities in the given ULPP are 0.80% p.a. Administration charges are assumed to be Rs 180 p.a. (increasing at an assumed inflation rate of 5.00%). As can be seen from the table above, assuming a compounded growth rate (CAGR) of 10% p.a. over 22-Year tenure, the clients investments will grow to approximately Rs 18,400,000.
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CHAPTER NO: - 6 MET GROWTH & SBI LIFE

6.1 Met Growth & SBI LIFE Horizon II Pension Plan
Company Name Met Growth On maturity fund value is payable including guaranteed loyalty additions (as applicable) Settlement option: withdraw fund value in installments within 5 years Maturity Benefit (without life insurance Use 100% of the vesting benefit to buy annuity for desired frequency. cover), in case of death the fund value as on the date shall be paid & the termination of policy.

SBI LIFE Life Long Pension At Vesting age commute up to 1/3 of the vesting benefit and balance can opt for annuity purchase.
No partial withdrawals No loyalty additions No top-up premiums
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Different benefits for the unfortunate Option 1 (Pure Pension Plan) event of death during the coverage Fund Value is Payable. term the nominee/beneficiary will receive:
Option 2 (Pension with Life Cover)
If the death if the person insured occurs before Fund Value + Sum Assured is payable. Death After Vesting Age Benefits depends upon Annuity Option Chosen. attainment of age 7.
Death Benefit
If the death of person insured occurs before the attainment of age 60.
If the death of person insured occurs or after the attainment of age 60.
Min. - Max. Entry Age (In yrs.) Min.-Max. Age at vesting Min. Premium P.A. (In Rs.)
0 60 years (3 months to be completed)
18 - 60 Years
18 75 years
50 - 70 Years
Minimum Annual Premium Rs.12000 Regular Premium: Yearly Half-Yearly Quarterly Monthly
12000 - No Limit
Premium Mode
Yearly Half-Yearly Quarterly Monthly
Premium Increment Option

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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Guarantee loyalty additions @ 2 % of average value at the end of 20th year & every 5 years thereafter. NA
Special Addition Options Policy Surrender Option Open Market Option Premium Top-up option Cover Continuance Option Premium Re-Direction Facility Fund Switching Option Rider Availability Tax-Benefits
(After completion of 3 Policy Year)
NA U/s 80CCC & Sec. 10(10A)(3)
NA U/s 80CCC & Sec. 10(10A)(3)
Responding a query on unit linked insurance plan (ULIP), Mr. Roy chairman and managing director of SBI Life Insurance, felt in the initial years that an ideal model for insurance would be a balanced mix of market related and traditional products. Stressing the importance of ULIP, Mr. Roy said that there was a huge need for retirement solution in the country. He felt that ULIP was best suited for retirement solutions. "Our ULIP product covers 64 per cent of the total premium income," he added. MetLife crosses 1-m policies mark
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI New Delhi, Nov 30 MetLife India Insurance Company Limited (MetLife) has announced that it has crossed the one million mark in life insurance policies issued. The total number of lives insured by the company now stands at two million (including the group business). "It is indeed a moment of pride for us at MetLife to achieve the 1 million mark. This achievement gains all the more significance keeping in view the tumultuous 2008 that the financial sector witnessed," Mr Rajesh Relan, Managing Director, MetLife India, said in a statement here today. MetLife started its operations in India in the year 2002.
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6.2
Met Growth & SBI Life Unit Linked II Pension plan

Met Growth On maturity fund value is payable including guaranteed loyalty additions (as applicable) Settlement option: withdraw fund value in installments within 5 years (without life insurance cover), in Use 100% of the vesting benefit to buy annuity for desired frequency. SBI LIFE LifeLong Pension At Vesting age commute up to 1/3 of the vesting benefit and balance can opt for annuity purchase.
Company Name
Maturity Benefit
case of death the fund value as on the date shall be paid & the termination of policy.

No partial withdrawals No loyalty additions
No top-up premiums Different benefits for the unfortunate Option 1 - Fund Value is Payable. event of death during the coverage term the nominee/beneficiary will receive:
If the death if the person insured occurs before attainment of age 7.
Option 2 - Fund Value or Sum Assured whichever is Higher is payable as death benefit.
Death Benefit
If the death of person insured occurs or after the attainment of age 60.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Min. - Max. Entry Age (In yrs.) Min.-Max. Age at vesting Min. Premium P.A. (In Rs.) Regular Premium: Single Premium Option Yearly Half-Yearly Quarterly Monthly Single Premium Premium Increment Option Special Addition Options Policy Surrender Option Open Market Option
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0 60 years (3 months to be completed)
18 - 65 Years
18 75 years
50 - 70 Years
Minimum Annual Premium Rs.12000
Regular Premium 24000 Single Premium 25000
Premium Mode
Yearly Half-Yearly Quarterly Monthly
Guarantee loyalty additions @ 2 % of average value at the end of 20th year & every 5 years thereafter.
After completion of 3 Policy Year
PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Premium Decrease Option Premium Top-up option Cover Continuanc e Option Premium ReDirection Facility Fund Switching Option
Accidental Death & Permanent Disability Rider
Rider Availability TaxBenefits
NA
Critical Illness Rider
U/s 80CCC & Sec. 10(10A)(3)
U/s 80CCC & Sec. 10(10A)(3)
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6.3 Met Growth & SBI Life Lifelong Pension

Company Name On payable Met Growth maturity fund value is SBI LIFE Life Long Pension At Vesting age commute up to 1/3 of the vesting benefit and balance can opt for annuity purchase. Use 100% of the vesting benefit to buy annuity for desired frequency.
including
guaranteed
loyalty additions (as applicable) Settlement option: withdraw fund value in installments within 5 years (without life insurance Maturity Benefit cover), in case of death the fund value as on the date shall be paid & the termination of policy.

No partial withdrawals No loyalty additions
Death Benefit
No top-up premiums Different benefits for the unfortunate event of death during the coverage term the nominee/beneficiary will receive:
Sum Assured + Pension Fund Balance amount
If the death if the person insured occurs before attainment of age 7.
If the death of person insured occurs or after the attainment
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI of age 60.
Min. - Max. Entry Age (In yrs.) Min.-Max. Age at vesting Min. Premium P.A. (In Rs.)
0 60 years 18 - 65 Years (3 months to be completed) 18 75 years Minimum Annual Premium Rs.12000 Regular premium: Yearly Half-Yearly Quarterly Monthly 50 - 70 Years NA Yearly Half-Yearly Quarterly Monthly
Premium Mode
Premium Increment Option Guarantee loyalty additions @ 2 % Special Addition Options Policy Surrender Option (After completion of 3 Policy Year) (After completion of 3 PolicyYear) of average value at the end of 20th year & every 5 years thereafter. Life Cover Option is available. Min. returns of 4% Guarantee Per Annum.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Open Market Option Premium Decrease Option Premium Topup option Cover Continuance Option Premium ReDirection Facility Fund Switching Option Rider Availability Tax-Benefits
NA U/s 80CCC & Sec. 10(10A)(3)
NA U/s 80CCC & Sec. 10(10A)(3)
On JUNE 13, 2007 published in the Business line SBI Life announces 9% bonus on Lifelong Pensions schemes for 2006-07. Offers bonus varying from 1.25 % to 2.75 % of effective Sum Assured for its various insurance schemes. SBI Life Insurance Company Ltd., one of the fastest growing leading private sector life insurance company, had announced a total of 9 per cent bonus, comprising of simple annual bonus of 5 per cent and guaranteed return of 4 per cent on all its in force Lifelong Pensions policies for the period 2006-07. All bonuses declared are a percentage of the effective Sum Assured, and not linked to the premium component. Achievements of SBI Life during the Financial Year 200607
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Net profit rose by 88% to Rs.3.83 crores for FY 06-07. New Business Premium grew by 210% to Rs.2, 566.08 crores. Built up a portfolio of over 64.9 lacs insured lives. Ranked 3rd amongst its private peers in terms of new business premium income.
Whereas, MetLife has entered in the market during 2002 and have given tough competition to SBI Life Insurance and all other insurance companies.
Met Growth Hoe does the plan work? First Year Premium
Used to provide Guaranteed Loyalty Addition on defined Intervals / maturity
50% at the end of the 10th year
Up to 70% at the end of the 15th year Plu s Assured Loyalty Addition @ 2% of the Average Fund Value of last 3 years. Second year premium onwards Allocated to different Funds without any Allocation Charge At the end of 20th, 25th &
30th year
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6.4 Met Advantage Plus & SBI LIFE Horizon II Pension Plan
Company Name Category Name Met Advantage Plus Deferment Annuity Plan At Vesting age commute up to 1/3 of the vesting benefit and balance can opt for Maturity Benefit Use 100% of the vesting benefit to buy annuity for Use 100% of the vesting benefit to buy annuity for annuity purchase. SBI LIFE Horizon II Pension Plan Deferment Annuity Plan At Vesting age commute up to 1/3 of the vesting benefit and balance can opt for annuity purchase.
desired frequency. desired frequency. With Life Cover - During the Option 1 (Pure Pension Plan) deferment period death benefit is Fund Value is Payable. equal to 110% of value of Unit in the unit account. Death Benefit Without Life cover - During the deferment period death benefit is equal to 100% of value of Unit in the unit account. If beneficiary is spouse, can also avail option to buy annuity also. Min. - Max. Entry Age (In yrs.) Min.-Max. Age at vesting (In yrs.) Min. Premium P.A. (In Rs.) Single 45 - 60 50 - 70 Years 20 - 55 18 - 60 Years Fund Value + Sum Assured is payable. Death After Vesting Age Benefits depends upon Annuity Option Chosen. Option 2 (Pension with Life Cover)
Regular Premium 10000 Single Premium 100000 Rs.
12000 - No Limit
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Premium Option Single Premium Premium Mode Premium Increment Option Special Addition Options Policy Surrender Option Open Market Option Premium Decrease Option Premium Topup option Cover Continuance Option Premium ReDirection Facility Fund Switching Option Rider Availability Tax-Benefits (After completion of 3 Policy Year) (After completion of 3 Policy Year) NA NA Yearly Half-Yearly Quarterly Monthly Yearly Half-Yearly Quarterly Monthly
NA U/s 80CCC & Sec. 10(10A)(3)
NA U/s 80CCC & Sec. 10(10A)(3)

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6.5 Met Advantage Plus & SBI LIFE Unit Plus II Pension
Company Name Category Name Met Advantage Plus Deferment Annuity Plan At Vesting age commute up to 1/3 of the vesting benefit and balance can opt for Maturity Benefit Use 100% of the vesting benefit to buy annuity for Use 100% of the vesting benefit to buy annuity for annuity purchase. SBI LIFE Unit Plus II Pension Deferment Annuity Plan At Vesting age commute up to 1/3 of the vesting benefit and balance can opt for annuity purchase.
desired frequency. desired frequency. With Life Cover - During the Option 1 - Fund Value is Payable. deferment period death benefit is equal to 110% of value of Unit in the unit account. Death Benefit Without Life cover - During the deferment period death benefit is equal to 100% of value of Unit in the unit account. If beneficiary is spouse, can also avail option to buy annuity also. Option 2 - Fund Value or Sum Assured whichever is Higher is payable as death benefit.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Min. - Max. Entry Age (In yrs.) Min.-Max. Age at vesting (In yrs.) Min. Premium P.A. (In Rs.) Single Premium Option Single Premium Premium Mode Premium Increment Option Special Addition Options Policy Surrender Option Open Market Option Premium Decrease Option Premium Topup option After completion of 3 Policy Year After completion of 3 Policy Year NA NA Yearly Half-Yearly Quarterly Monthly Single Premium Yearly Half-Yearly Quarterly Monthly Single Premium 100000 Rs. Regular Premium 10000 Regular Premium 24000 Single Premium 25000 45 - 60 50 - 70 Years 20 - 55 18 - 65 Years
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Cover Continuance Option Premium ReDirection Facility Fund Switching Option
Accidental Death & Permanent Disability Rider
Rider Availability Tax-Benefits
NA U/s 80CCC & Sec. 10(10A)(3)
Critical Illness Rider U/s 80CCC & Sec. 10(10A)(3)
6.6 Met Advantage Plus & SBI LIFE Life Long Pension
Company Name Category Name
Met Advantage Plus Deferment Annuity Plan At Vesting age commute up to 1/3 of the vesting benefit and balance can opt for annuity purchase.
SBI LIFE LifeLong Pension Deferment Annuity Plan At Vesting age commute up to 1/3 of the vesting benefit and balance can opt for annuity purchase. Use 100% of the vesting benefit to buy annuity for desired frequency.
Maturity Benefit
Use 100% of the vesting benefit to buy annuity for desired frequency.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI With Life Cover - During the deferment period death benefit is equal to 110% of value of Unit in the unit account. Death Benefit Without Life cover - During the deferment period death benefit is equal to 100% of value of Unit in the unit account. If beneficiary is spouse, can also avail option to buy annuity also. Min. - Max. Entry Age (In yrs.) Min.-Max. Age at vesting (In yrs.) Min. Premium P.A. (In Rs.) Single Premium Option Single Premium Premium Mode Premium Increment Option Yearly Half-Yearly Quarterly Monthly Yearly Half-Yearly Quarterly Monthly Single Premium 100000 Rs. Regular Premium 10000 NA 45 - 60 50 - 70 Years 20 - 55 18 - 65 Years Sum Assured + Pension Fund Balance amount
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Special Addition Options Policy Surrender Option Open Market Option Premium Decrease Option Premium Top-up option Cover Continuance Option Premium Re-Direction Facility Fund Switching Option Rider Availability Tax-Benefits (After completion of 3 Policy Year) (After completion of 3 Policy Year) NA Life Cover Option is available. Min. returns of 4% Guarantee Per Annum.
NA U/s 80CCC & Sec. 10(10A)(3)
NA U/s 80CCC & Sec. 10(10A)(3)
INTERPRETATION: The products that has been compared in the above section are :
Met Advantage Plus SBI Life HorizonTM Pension

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Met Advantage Plus SBI Life LifeLong Pension Met Advantage Plus SBI Life Unit Linked II Pension Plan
The Met advantage Plus, SBI Life HorizonTM Pension and SBI Life Unit Linked II Plan are Unit linked pension plans (ULPP), and SBI Life LifeLong Pension is the traditional type of pension plan.
From the above comparison we can say that, though MetLife has introduced only two products i.e. Met Advantage Plus and Met growth. The feature of Met Advantage Plus has mostly all the features which has taken into consideration all the financial needs of customers and thus capturing the market gradually. Apart from the Product features and benefits the comparison can be done on the charges that get considered at the time of calculation. It has importance for the amount of premium. The next section can help us on compare on that part. The given comparison is given on the premium amount for pension plans: 1. Met advantage plus and 2. SBI Life Horizon TM Pension.
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CHAPTER NO: - 7 COMPARISON ON CALCUALTION OF PREMIUM

7.1 Charges for Metlife Insurance
a. Premium Allocation charge
Charges Premium Related (on each premium) Regular Premium
Current Year 1: 20% Year 2 to 10: 2% Year 11+ : 1% 5% 1%
Maximum 25% 5% 5% 5% 5%
Single Premium Top-up Premium
b. Fund Management Charge
Fund Option Preserver Protector Moderator Balancer Accelerator Virtue Multiplier
Current 1.25% p.a. 1.25% p.a. 1.50% p.a. 1.50% p.a. 1.75% p.a. 1.75% p.a. 1.75% p.a.
Maximum 2.50% p.a. 2.50% p.a. 2.50% p.a. 2.50% p.a. 2.50% p.a. 2.50% p.a. 2.50% p.a.
c. Policy Administration Charge
Fixed per month: Current: Rs.25, Maximum: Rs. 75
d. Surrender Charge
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Policy year % of First Year Regular/ Single Premium 4 4 5 2 6 & thereafter 0
e. Switching Charge
Minimum: Rs. 250 & Maximum: Rs. 500
f. Mortality Charge (Applicable only for option A)
Calculation: Mortality Charge = (Sum at risk/1000) * Cost of Insurance (COI) Where, Sum at risk = death benefit Fund value Sample COI per 1000 sum at risk are: Age COI 20 0.108284 30 0.126830 40 0.222656
g. Miscellaneous charges:
The company may charge Rs. 250 for any material alteration in the contract. Maximum: Rs. 500
In the year 2006-07, the SBI Life Insurance has introduced these two policies for retirement planning i.e. SBI Life HorizonTM Pension, SBI Life Unit Linked II Pension Plan which are unit linked insurance plans.
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7.2 Charges for SBI Life Insurance

a. Premium Allocation charge
Policy year 1 year Year 2 & 3 Year 4 & 11 Year 11 onwards Top-up (year 1 to year 10) Top-up (year 11 onwards)
Entry charges as a percentage of the Annualized premium/Rs. Amount 15%/Rs.60000* 7.5% / Rs.40000* 1.5% / Rs.10000* Nil 1.5% / Rs.10000* Nil
b. Policy Administration Charge
These charges are increased @ 2 p.a.Subject to a ceiling of Rs.300 per month.
c. Fund management charges
The annual fund management charges for each fund are as follows Equity pension fund 1.5% Bond pension fund 1% Money market pension fund 0.25%
d. Surrender charge
Policy year Year 4 - 10 Year 11 onwards
Surrender charge 1% of fund value Nil
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e. Mortality charge
These are recovered on a monthly basis by way of cancellation of units. Rates are one year renewable basis. The premium allocation charges, top up allocation charges and surrender charges are zero from 11th year onwards.
CONCLUSION: We can conclude from the above stated data and analysis that MetLife Insurance Company is charging more on premium and have less satisfactory options than the SBI Life Insurance Products. But it cannot be correctly be forecasted that SBI Life Insurance is giving more returns than the MetLife Insurance Company. As the company is charging more on investment, it may possible that they are providing more returns to the customers. This can be found out from the small survey of 50 persons form different occupations age and background.
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7.3Unit Linked Pension Plans

FUND UPDATE, AS ON 30TH SEPTEMBER 09 PENSION PLANS AND RELATED FUNDS FUND NAME
Pension Products SBI Life FUND NAME Horizon II Pension Equity Optimiser Equity Pension Bond Pension Money Market Pension Balanced Pension Growth Pension --Unit Plus II Pension SBI Life
Pension Products
Met Advantage Plus
Met Pension (Par)
Multiplier Virtue Accelerato r Balancer --
---
Preserver Protector Moderator --
The above table provides you with the funds available for investment in respective pension policies. According to the pension policies the insured have the option to choose the funds and have the mobility to switch the funds as per the conditions of the policies. In the Unit Linked Pension Plan (ULPP), the insured can have access the market conditions and NAV of the funds, risk involved in the funds and can take appropriate
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI decisions after studying all the aspects that has been covered under next section of this report.
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CHAPTER NO :- 8 FEATURES OF VARIOUS FUNDS

8.1 MetLife Insurance India
Unitlinked Fund Multiplier Asset Allocation Assets Listed equities Money Market Investment 0% Min 80% Max 100 % 40% Unit-Linked Fund Objective To generate long term capital appreciation by investing in diversified equities Benchmark Risk Profile This fund will exhibit very high risk and returns and will be prone to market fluctuations S&P CNX NIFTY Benchmark Index: 100% Equity and security type Security type:
Virtue
Listed equities Money Market Investment
60%
100 %
To generate long term capital appreciation by investing in diversified equities of companies promoting healthy lifestyle and enhancing
This fund will have very high risk and returns profile and will be prone to market fluctuations
0%
40%
Accelerato r
Listed equities Long term bonds
60% 0%
95% 60%
quality of life. To achieve capital Higher risk appreciation and current income, and returns, investment
Security type: 80% Equity
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Short term bonds Money market investment Govt. 0% 40% 40% 0% 0% 35% 40% through a judicious mix of investments in equities, with limited investment in fixed income securities. S&P CNX NIFTY CRISIL Composite Bond Fund Balancer Listed equities Long term bonds Short term bonds Money market investment Govt. securities Infrastructu 0% ral sec. CRISIL Composite Bond Fund Preserver Govt. securities Money market investment 80% 0% 100 % 40% To generate income at a level consistent with preservation of capital, through
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prone to market fluctuation Benchmark index: 20% Debt
securities Infrastructu 0% ral sec.
60% 0% 0% 0%
95% 60% 35% 40%
To generate capital appreciation and current income, through a judicious mix of investment in equities and fixed
Higher risk and returns with a fair exposure to equities
Index Security type: 50% Equity 50% Debt
Benchmark index: S&P CNX
0%
40%
income securities
40%
NIFTY
Very low risk
Index Security type: 100% Debt (GOI)
PENSION PLAN WITH RESPECT TO AXIS BANK & SBI investments in securities issued or guaranteed by Central and State Governments ISEC Mi-BEX Benchmark index:
Protector
Govt. securities Long term bonds Short term bonds Money Market
25% 10% 0% 0%
90% 60% 45% 40%
To earn regular income by investing in high quality fixed income securities
Low risk and is designed for regular income
Security type: 100% debt
Benchmark index:
investment Infrastructu 0% ral sec.
60%
CRISIL Composite Bond Fund Index Security type: 20% Equity 80% Debt
Moderator
Listed equities Long term bonds Short term bonds Money market investment Govt.
60% 0% 0% 0%
95% 60% 35% 40%
To generate investing in high quality fixed income securities and to generate capital appreciation by
Medium risk limited exposure to equity. Returns expected to be superior to fixed income investment.
regular income by with a
Benchmark index: S&P CNX NIFTY CRISIL Composite
0%
40% 40%
investing a limited portion in equity.
securities Infrastructu 0% ral sec.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Bond Fund Index
8.2 SBI LIFE INSURANCE

Unit Linked Fund Equity Optimiser Asset Equity & related instruments Debt & Money Market Instruments 0% 40% Min 60% Max Asset Allocation Security type Unit Linked Fund objective Risk Profile High and Benchmark type Security type:
100% To deliver higher returns through equity investment while maintaining an optimum allocation pattern. The fund has the following class allocation strategy.
Benchmark index: Nifty (80%) LiquiFEX High (20%) Security type:
Equity Pension
Equity & related instruments Debt & Money Market Instruments
80%
100% For long term capital through actively managed
0%
20%
investment in equity and equity related instruments.
Benchmark index: Nifty
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Bond Pension
Debt Instruments Money Market Investments
60% 0%
100% Safe and stable returns through 40% asset allocation in debt & money market instruments and active duration management.
Low to medium
Security type:
Benchmark index: CRISIL Low CompBex Security type:
Money Market Pension
Debt Instruments Money Market Investments
0% 80%
20% 100%
Benchmark index: LiquiFEX
Growth Pension
40%
100% For long term capital appreciation through investment
Medium to high
Security type:
0%
60%
primarily in equity and equity related instruments.
Benchmark index: Nifty (70%) CompBex
Balanced Pension
40%
60%
Maintain a balance between return and safety through a
Medium
(30%) Security type:
40%
60%
blend of equity, fixed income and money market instruments.
Benchmark index:
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Nifty (50%) CompBex (50%)
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CHAPTER NO: - 9 DATA ANALYSIS AND RESULTS:

1. Number of people of insured:
Insured Non-insured
Number of persons 35 15
Percentage 70% 30%
total num ber of persons

0 30% insured non-insured 0
70%
INTERPRETATION: The Insurance Industry is growing day by day and has a wide scope to improve on its design of product and features of the same. So that it can give benefit to the company with greater profits and wealth with growth in economy as a whole.
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2. Customer awareness about the product Number of persons 24 20 5 1 Percentage 48% 40% 10% 2%
Advertisement Friends & relatives Direct selling agents others
T otal num ber of persons

2% 10% 48% 40% Advertisem ent Friends& relatives Direct selling agents others
INTERPRETATION: The policyholders and potential insured persons are getting aware of the insurance products from most of the advertisements & friends and relatives. Whereas, the Direct selling agents has a significant impact on the market and they are successful.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI 3. Awareness of benefits of their policy: Number of persons 34 16 Percentage 68% 32%
Yes No
S ales
00 24% 76% Yes No
INTERPRETATION: The survey analyses that there are in all 68% of people who are aware of the overall benefits of policies, i.e. there are 32% of people who dont have any knowledge about benefits offered by the company products, they dont have a correct combination of income and their need of pension plans. So, it can be negative side to insurance industry, and the insurance sector should have to improve on that part. In case of unit linked pension plans, the most of the customers from the backward classes and similar classes of society dont have much awareness of market trends and growth. So, it can be difficult for them to choose a pension plan with their financial needs. The insurers can help the customers for the same and can help to grow the insurance business.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI 4. Opinion about the premiums paid: Number of persons 11 14 16 5 4 Percentage 22% 28% 32% 10% 8%
Very high high Moderate Low Very low
Num berof persons

10% 8% 22% Very high high 32% Moderate 28% Low Very low
INTERPRETATION: The premiums paid by insured is depend upon the sum assured of the policy and type of policy, the term, age and other aspects, which can be paid monthly, quarterly, semiannually, annually with the conditions applicable. From the data we can analyze that very high premium and high premium payment is more, even if it is from the customers point of view. The industry should have control and accuracy in calculation of premium payment to attract the customers.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI 5. Most favoured insurance company: Number of persons 18 15 12 5 Percentage 36% 30% 24% 10%
LIC SBI Life Insurance Company Ltd. Axis Bank (MetLife Insurance) Others

10% 24% 36% SBI Life Insurance Company Ltd. 30% MetLife Insurance Com pany Ltd. Others LIC
INTERPRETATION: The provided data tells that LIC as a government insurance company is having huge profits and large number of policyholders among all other companies. SBI Life insurance is current fast growing private player in insurance industry. In 2007-08, SBI Life grew by 90 percent. The company has collected around Rs 6,000 crore in fresh business premiums in 2008-09. MetLife Insurance Industry is growing fastly as a new participant in the market having a less market share but creating a good image in the minds of customers. And the rest of the market is in the hands of other insurance companies.
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6. Concerns regarding Insurance policy Number of persons 6 15 18 11 Percentage 12% 30% 36% 22%
Tax benefits Security Savings/ Investments Life cover
12% 22% 30% 36% Tax benefits Security Savings/ Investm ents Life cover
INTERPRETATION: The data provided gives us the idea about the customers actual concerns about an insurance policy, as a more % of share for saving/investments, it shows that an insurance company has to work on return on investment, increase in NAV and premium payment.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI 7. Pension plan is: Number of persons 11 10 7 7 15 Percentage 22% 20% 14% 14% 30%
A tax saving plan A saving scheme with good return A financial security for the family Risk coverage All the above
INTERPRETATION: Formulations of a pension plan have several features that have to be considered. So it has taken into consider to know the customers actual requirements and expectations from the policy. Hence, from the above data we can easily get the idea that on what aspect we should be attentive.
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI 8. Customers interest in the pension products offered by SBI Life Insurance Number of persons 17 15 18 Percentage 34% 30% 36%
Yes No Cant say
Num berof persons
36%
34% Yes No Cant say 30%
INTERPRETATION: The given data above indicates that the actual customers of SBI Life are around 30% of the total number of people and the potential customers who can be the future actual customers of the company are around the 36% of the total number of people. Thus, the SBI Life should work upon promotion policies and in depth study of customers expectations.
9. Customers interest in the pension products offered by Axis Bank

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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Number of persons 15 12 23 Percentage 30% 24% 46%
Yes No Cant say
Num berof persons
46%
30%
Yes No
24%
Cant say
INTERPRETATION The customers interest in the Axis Bank (MetLife Insurance) is around 30% of total number of people and where as 24% of people are not at all interested in pension products. There are very less number of products in case of Axis bank and thus customers have very limited number of options to choose appropriate policy.
10. Customers perception about the insurance companies mentioned below
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Number of persons 28 22 Percentage 56% 44%
SBI Life Insurance Company Ltd. (Axis Bank) MetLife Insurance
Num berof persons
44% 56%
SBI Life Insurance Com pany Ltd. MetLife Insurance Company Ltd.
INTERPRETATION: 56% of Customers preference for SBI Life insurance indicates the establishment of goodwill in the market and another 44% of customers preference for MetLife Insurance Company Ltd. indicates growing status of the company in the industry.
11. Areas in which an insurance company should work upon
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Number of persons 5 10 15 20 Percentage 10% 20% 30% 40%
Less Complicated Procedure Fewer Premiums More returns Transparency
Num berof persons

LessCom plicated Procedure 20% Fewer Premium s More returns 30% Transparency
10% 40%
INTERPRETATION: Competition in the market has forced the insurance companies to give all the above factors prime significance to attract customers. There are several areas that should be considered to increase the number of policyholders and amount of premium collection. Systematic procedure to get a policy is a very important. But it should be less complicated. Transparency also plays a very important role in designing a policy, when a customer is getting the clear perceptions about the company and he feels a sense of security then he go ahead with the services offered by that company or he will look for other benefits from other companies.
80
CHAPTER NO: - 10 RECOMMENDATIONS

In order to succeed in any of the business it is very necessary to make and follow the strategies. Strategies are very important for any of the business. Following are the general strategies, which are recommending to the insurance sector. One approach is to focus upon product quality, which will instill confidence in minds of the customers that they would be offered best product from out of the several available products. The other approach, is to focus on the customers need, would involve a heavy investment in developing relationships with policyholders. Under this approach, one can expect a range of products and services designed to give the customer what he specially desires. The third approach is of greater market segmentation under which the population should be divided into several homogeneous groups and product, and services would be targeted towards such selected markets. The effort would be to tie clients to their company- by customized combination of coverage, easy payment plan, risk management advice, and convenient quick claim handling. Porter Generic Strategies: One of the expert Michel porters has identified three internally consistent generic strategies, which can be used singly or in combination: overall cost leadership is clearly under stable. In a differentiation strategy, a company seeks to be unique in its industry along some dimensions that are widely valuable by the customer. May be the lowest cycle time for settling a claim under say, a med claim policy could be differentiating factor. In a cost focus, a company seeks a cost advantage in its target segment, while in differentiation focus; a company seeks a differentiation target. KEY STRATEGY TO SUCCESS 1. Marginal Different Product: Another strategy would be for the companies to design products that will make comparison-shopping difficult. They could offer a wide variety of covers with marginal
81
PENSION PLAN WITH RESPECT TO AXIS BANK & SBI differences and varying prices, whose terms and conditions are difficult to compare for consumers who may not have sufficient experience in purchasing insurance and who would find it difficult to make a clear choice. If the consumer is offered a unique policy, he will have no alternative coverage with which can be compared. Given the combination policy, which can offer protection against a number of losses, the consumer will find comparison even more difficult. 2. Designing New Strategies: The existing insurance companies cannot be satisfied with concentrating on the consolidation of their existing markets, but have to achieve further growth and penetration. They must, therefore, concentrating on strengthening existing points of service, designing new channel of distribution, direct contact with their ultimate customers, and front line employee empowerment. They also need to refresh their marketing set up. The new comers, on the other hand give priority to tapping the market, left unexploited by the public sector companies. 3. Move towards Rural Market: It is one of the most important suggestions; data says that rural market is still uncovered by this sector. We believe that the sector should move towards tie rural market. Insurance penetration can be achieved by tapping the neglected Rural Markets. There is vast potential for insurance growth in the rural sector. A recent survey by foundation for research, training and Education in insurance (FORTE) suggests that insurance can be sold profitably to rural communities in India. The survey reveals that There is distinct hierarchy of needs in rural areas. Rural people find security in groups. The saving habit is very strong in rural areas. Average saving across the most important socio-economic strata comes to 30-35% of annual income or Rs. 13,500 annually, which is significant. There is high level of awareness about life insurance and fairly high-level about 36% already own life insurance. 51% of these who own life insurance would like to buy more.
82
PENSION PLAN WITH RESPECT TO AXIS BANK & SBI Amongst the savers, a significant percentage does not save through formal financial modes or institutions. Rural buyers of insurance prefer a half yearly mode of premium payment to coincide with the time of the harvest. Thus there are very much chances for any of the companies to work over this scenario. So we believe and suggest all the players to move towards the rural areas.
83
CHAPTER NO: - 11 CONCLUSION
All the above discussions can conclude that the SBI Life Insurance and Axis bank are the major players in the investment industry and having good share in the market both the companies are making substantial profits in the life insurance sector. Though SBI Life Insurance is a Joint venture between SBI and BNP Paribas Assurance, Being old player in the market the SBI Life is having more number of policyholders than the Axis bank. MetLife Insurance being a new player in the market has a low share in the market in terms of profits. Axis bank does not provide all the products of MetLife, only the selected Products are offered for sale through Axis bank. So, both the companies are on the verge of growth and have the potential to reform pension plan system for the development of the economy of India. Another constraint for Axis Bank is that it has not knocked the all the parts of India and hence has to improve to tap the untapped market with appropriate strategies as mentioned in the above section of the report.
84
PENSION PLAN WITH RESPECT TO AXIS BANK & SBI With the existing pool of skilled fund managers and qualified actuaries, India can develop required institutional framework satisfactorily. This will help to mobilize a large amount of money that may be invested suitably for the construction of the infrastructure facilities, development of the debt markets and to reduce volatility in the stock markets in India. The most gratifying aspect of the successful reform of the pension system will be assuring a better standard of living for todays young workers when they retire.
85
CHAPTER NO :- 12 ANNEXURE
QUESTIONNAIRE (Survey regarding pension plan with respect to MetLife and SBI Life Insurance)
Name: Age: Occupation:

Q.1- Are you currently insured? a. Yes b. No If yes, please give the details of company, plan, premium etc.
Q.2- Are you satisfied with your current insurer? a. Yes b. No
Q.3- How did you come to know about this policy? a. Advertisement b. Friends & relatives c. Direct selling agents
86
PENSION PLAN WITH RESPECT TO AXIS BANK & SBI d. Others
Q.4- Are you aware of the benefits in your policy? Yes No
If yes what are they? Sum assured Additional benefits Maturity date Risk coverage
Q.5- Please specify your opinion for the premiums paid for the above policy? a. Very high b. High c. Moderate d. Low e. Very low
Q.6- Which is your favoured insurance company? a. LIC b. SBI Life Insurance c. Metlife Insurance d. Others (please Specify)
87
Q.7- Which is your main concern while taking an insurance policy? a. Tax benefit b. Security c. Investment/savings
Q.8- Does this policy satisfy your financial needs? (Please rate on the scale 1 to 10 with 1 being least satisfied)
Q.9- According to you pension plan is, a. A tax saving plan b. A saving scheme with good return c. A financial security for the family d. Risk coverage e. All the above Q.10- Are you interested in the pension products offered by SBI Life Insurance? a. Yes b. No c. Cant say
Q.11- Are you interested in the pension products offered by Metlife Insurance? a. Yes
88
PENSION PLAN WITH RESPECT TO AXIS BANK & SBI b. No c. Cant say
Q.12- According to you, which Insurance company is more secure from the investment point of view? a. SBI Life Insurance b. MetLife Insurance Q.13- According to you, in what areas should the insurance companies work upon? less complicated procedure fewer premiums More returns Transparency Q.14- Do you think that securities have improved after allowing private players in insurance sector? a. Yes b. No Your comments on: SBI Life Insurance ______________________________________________________ ______________________________________________________ Axis Bank
Thank you for sparing your valuable time.
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CHAPTER NO: - 13 WEBLIOGRAPHY

en.wikipedia.org/wiki www.insurancesector.com www.Axisbank.com www.moneycontrol.com www.axisbank.com/24x7banking/internetbanking/Internet-Banking
www.statebankofindia.com/
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PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

CHAPTER NO: - 1 INSURANCE

1.3 Functions of Insurance

The secondary functions of insurance include the following: Prevention of losses

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

1.4 Categories of Insurance

GENERAL INSURANCE CORPORATION:

MUTUAL FUND RETURN & RISK COVERAGE PARTIALLY

GIC (GENERAL INSURANCE CORPORATION)

LIFE INSURANCE CORPORATION:

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

Pension plan: A pension plan or annuity is an investment over a certain number of

1.5 Functioning of Insurance Industry:

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

CHAPTER NO: - 2 LIFE INSURANCE

ROLES OF LIFE INSURANCE:

2.2 Need for Life Insurance

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

2.3 Benefits from Life Insurance

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

CHAPTER NO :- 3 PENSION PLAN

3.1 Need for Pension Plan

For Pension Schemes For Pension Schemes

For Overall Deduction Limit For Pension Schemes

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

3.3 Products of Pension Plans

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

Group products of pension are: a. Group gratuity scheme:

CHAPTER NO: - 4 COMPANY PROFILE

4.1 Axis Bank

4.2 MetLife Insurance Company

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

4.3 SBI & SBI Life Insurance

SBI Lifes Key Accomplishments:

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

5.1Axis Bank Pension Products

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

finance to fulfill your desires. It is a regular pension product.

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

Our investment operations are periodic supervision by IRDA.

The transparency you look for:

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

charge (%) Charges (Rs)* Charges (%) Tenure (Yrs) 22

*Administration charges are subject to 5.00% inflation per annum.

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

CHAPTER NO: - 6 MET GROWTH & SBI LIFE

No partial withdrawals No loyalty additions No top-up premiums

Option 2 (Pension with Life Cover)

0 60 years (3 months to be completed)

Yearly Half-Yearly Quarterly Monthly

Premium Increment Option

(After completion of 3 Policy Year)

(After completion of 3 Policy Year)

NA U/s 80CCC & Sec. 10(10A)(3)

NA U/s 80CCC & Sec. 10(10A)(3)

PENSION PLAN WITH RESPECT TO AXIS BANK & SBI

Met Growth & SBI Life Unit Linked II Pension plan

No partial withdrawals No loyalty additions

If the death if the person insured occurs before attainment of age 7.

0 60 years (3 months to be completed)