Insurance Regulatory and Development Authority (IRDA) is an autonomous apex statutory body which regulates and develops the insurance industry in India. It was constituted by a Parliament of India act called Insurance Regulatory and Development Authority Act, 1999 [2][3] and duly passed by the Government of India.[4] The agency operates from its headquarters at Hyderabad, Andhra Pradesh where it shifted from Delhi in 2001.[5] IRDA batted for a hike in the foreign direct investment (FDI) limit to 49 per cent in the insurance sector from the erstwhile 26 per cent.[6] The FDI limit in insurance sector was raised to 49% in July 2013.[7] History The IRDA Act, 1999 was passed as per the major recommendation of the Malhotra Committee report (1994) which recommended establishment of an independent regulatory authority for insurance sector in India. Later, It was incorporated as a statutory body in April, 2000. The IRDA Act, 1999 also allows private players to enter the insurance sector in India besides a maximum foreign equity of 26 per cent in a private insurance company having operations in India. The FDI limit in insurance sector was raised to 49% in July 2013. It serves as an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith. IRDA role [8] is to protect rights of policy holders & they provides registration certification to life insurance companies & responsible for renewal, modification, cancellation & suspension of this registered certificate.
Organizational structure or Composition of Authority As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority.[9] IRDA is a ten member body consisting of:[9]
A Chairman,-(T.S. Vijayan) Five whole-time members,-(R.K. Nair,M. Ram Prasad,S. Roy Chowdhary,D.D. Singh) Four part-time members,-(Anup Wadhawan,S.B. Mathur,Prof. V.K.Gupta,CA. Subodh Kr. Agarwal)
All members are appointed by the Government of India.[9] Insurance Repository Recently the Finance Minister of India announced the setting of insurance repository system. An Insurance Repository is a facility to help policy holders buy and keep insurance policies in electronic form, rather than as a paper document. Insurance Repositories, like Share Depositories or Mutual Fund Transfer Agencies, will hold electronic records of insurance policies issued to individuals and such policies are called electronic policies or e Policies.
the policy proceeds upon the death of the insured. The beneficiary is not a party to the policy, but is designated by the owner, who may change the beneficiary unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to changes in beneficiary, policy assignment, or borrowing of cash value. The policy, like all insurance policies, is a legal contract specifying the terms and conditions of the risk assumed. Special provisions apply, including a suicide clause wherein the policy becomes null if the i n s u r e d c o m m i t s s u i c i d e w i t h i n a specified time for the policy date (usually two years). Any misrepresentation by the owner or insured on the application is also grounds for nullification. Most contracts have a contestability period, also usually a two-year period; if the insured dies within this p e r i o d, t h e i ns u r er h a s a l eg a l r i g h t to c o nt es t th e c l a i m a n d r e q u es t a d di ti o na l i nf o r m a ti o n b ef o r e deciding to pay or deny the claim. The face amount of the policy is normally the amount paid when the policy matures, although policies c a n p r o v i d e f o r g r ea t er o r l e s s er a mo u nts . T h e po l i c y m a t ur es w h en t h e i n s u r e d d i e s o r r e a c h es a specified age. The most common reason to buy a life insurance policy is to protect the financial interests of the owner of the policy in the event of the insured's demise. The insurance proceeds would pay for funeral and other death costs or be invested to provide income replacing the deceased's wages. Other reasons include estate planning and retirement. The owner (if not the insured) must have an insurable interest in the insured, i.e. a legitimate reason for insuring another persons life. The insurer (the life i n s u r a n c e co m p a n y ) c a l cu l a tes t he p o l i c y p r i ces w i t h a n i n te nt to r e co v e r cl a i ms to b e p a i d a n d administrative costs, and to make a profit.
expertise of Sun Life Financial Inc., offers a formidable protection for your future.
(BSLI)
has been operating for 9 years. It has contributed significantly to the growth and development of the life insurance industry in India. It pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. It was the first player in the industry to sell its policies through the Bancassurance route and through the Internet. It was the first private sector player to introduce a Pure Term plan in the Indian market. BSLI has covered more than 2 million lives since it commenced operations. And its customer base is is spread across more than 1500 towns and cities in India. The company has a capital base of Rs. 1274.5 crores as on 31st March 2008.With an experience of over 9 years, BSLI has contributed significantly to the growth and development of the life insurance industry in India and currently ranks amongst the top 5 private life insurance companies in the country. Known for its innovation and creating industry benchmarks, BSLI has several firsts to its credit. It was the first Indian Insurance Company to introduce Free Look Period and the same was made mandatory by IRDA for all other life insurance companies. Additionally, BSLI pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. To establish credibility and further transparency, BSLI also enjoys the prestige to be the originator of practice to disclose portfolio on monthly basis. These category development initiatives have helped BSLI be closer to its policy holders expectations, which gets further accentuated by the complete bouquet of insurance products (viz. pureterm plan, life stage products, health plan and retirement plan) that the company offers. Add to this, the extensive reach through its network of 600 branches and 1,75, 000 empanelled advisors. This impressive combination of domain expertise, product range, reach and
5
ears on ground, helped BSLI cover more than 2 million lives since it commenced operations and establish a customer base spread across more than 1500 towns and cities in India. To ensure that our customers have an impeccable experience, BSLI has ensured that it has lowest outstanding claims ratio of 0.00% for FY 2008-09.Additionally, BSLI has the best Turn around Time according to LOMA on all claims Parameters. Such services are well supported by sound financials that the Company has. The AUM of BSLI stood at Rs.8165 crs as on February 28, 2009, while as on March 31, 2009, the company has a robust capital base of Rs. 2000 crs.
1st to disclose portfolio on a monthly basis. 1st to introduce Free Look Period and the same was made mandatory by IRDA for all other Life Insurance Companies
OPPORTUNITY:
Insurance market is very big, where company can expand its business easily.
THREATS:
OLD HABITS DIE HARD: Its still difficult task to win the confidence of public towards private company.
The company is facing major threats from LIC etc.-which is a government company.
Plans for all income groups are not available which can create adverse effect later on the market share of the company.
Chapter 3
MAJOR COMPETITOR AT A GLANCE LIC (LIFE INSURACECORPORATION)
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organisation servicing functions were transferred to th e branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00crore mark of new business. But with re-organisation happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies. Today LIC functions with2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the Corporate office. LICs Wide Area Network covers 100 divisional offices and connect shall the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LICs ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad , Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year.
9
It has crossed milestone of issuing 1,01,32,955 new policies by 15thOct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business.
10
Chapter 4
11
6. Birla Sun life insurance Platinum Plus- It is a unit linked, non participating insurance plan. In this plan, the investment risk is borne by the policyholder but not if this policy is detained till maturity. 7. Birla Sun Life Insurance Saral Jeevan Plan- In todays fast life its really easy to buy an insurance plan, which you immediately can purchase just by providing three health statements to the company. Bsli Saral Jeevan is the best option to go for. 8. Birla Sun Life Insurance Supreme-Life - Its a unit linked non-participating plan providing 8-fund options to choose. It gives a choice of two death benefits. 9. Birla Sun Life Insurance Dream Plan- Its a unit-linked policy, which provides you guaranteed returns, 0% allocation charges, and option to double or triple the guaranteed maturity. 10. Birla Sun Life Insurance Classic Life Premier- It will give you guaranteed additions in the form of guaranteed units and a good choice of 8 investment funds are also there. You are free to choose the term period of 10,20,30 or whole life. 11. Birla Sun Life Insurance Simply Life - It ensures a lifetime of tax-free investments to fulfill the needs of your dear ones. Its a market related plan provides you a good death benefit amount. 12. Birla Sun Life Insurance Prime Life Premier - Its a single time investment with top up options. It keeps you hassle free and provides you guaranteed returns at regular intervals. 13. Birla Sun Life Insurance Prime Life - It is a single premium policy gives you the benefit of life insurance and investments as well. Its a non-participating ULIP policy. 14. Birla Sun Life Insurance Flexi Cash Flow - For this policy you can pay lump sum premium payment at regular intervals. It will give you 3% guaranteed returns on net policy charges. 15. Birla Sun Life Insurance Flexi Save Plus - This plan will give you the choices of 3 fund options, maturity ages & guaranteed returns of 3%.
12
16. Birla Sun Life Insurance Flexi Life Line - This would provide you a life long cover till 100years of age and will give you the option of tax-free partial withdrawals. 17. Birla Sun Life Insurance Single Premium Bond - This plan gives you the opportunity to make one time investment with no medical tests and will also gives you the facility of high entry age. Its a short term investment plan provides you the option of 5 years or 10 years term period. 18. Birla Sun Life Insurance Freedom 58 - Its a non- participating ulip plan. It helps you accumulate your premiums and the investment return there of into a corpus of your retirement. 19. Birla Sun Life Insurance Flexi Secure Life Retirement Plan II - This will provide you the option to take a life cover or not. You can choose your retirement age yourself whether you want to pre-pone/postpone it. 20. Birla Sun Life Insurance Children's Dream Plan - Its a unit-linked policy, which provides you guaranteed returns, 0% allocation charges, and option to double or triple the guaranteed maturity.
13
Chapter 5
Children Plans
1. Jeevan Anurag : Is plan designed for the children educational requirements . This plan can be taken on the parents life. The basic sum assured is given immediately on the death of the life assured during the term of the policy.
2. Jeevan Kishore : Is a plan which can be availed by the parent or grand parents of the children. It is an endowment assurance plan for children of less than 12 years of age. 3. Jeevan Chhaya : It is a plan where financial protection is given against death during the term of the plan. It is an Endowment Assurance plan. Besides this benefit one-fourth of Sum Assured is payable at the end of each of last four years of policy term irrespective if the life assured dies or survives the duration of the policy. 4. Komal Jeevan : Is a Money Back Plan which can be bought by the parent or grand parent for their child from the age of 0-10years. This plan gives financial protection against death during the duration of the plan with periodic payments on survival at specified durations. 5. Child Future Plan : A policy where the future needs like education, marriage and other requirements are taken care of. This plan provides a benefit which not only takes care of the risk cover of the child during the policy but also after 7 years of the policy being expired. 6. Child Career Plan : A plan to meet the educational and other needs of the child. It provides the risk cover on the life of child during the policy term as well as 7 years after the policy has expired. There are also Survival benefits given to the life assured at the end of a specific duration.
15
8. Marriage Endowment Or Educational Annuity Plan : This is an Endowment Assurance plan that provides for benefits on or from the selected maturity date to meet the Marriage/Educational expenses of the named child.
Pension plans
1. New Jeevan Dhara - I : is a Deferred Annuity plans that allows the policyholder to make provision for regular income after the selected term. 2. New Jeevan Suraksha - I : Is a deferred annuity plan. 3. Jeevan Nidhi : Is a deferred annuity plan with profits.
16
4. Jeevan Akshay - VI : By paying a lump sum amount this immediate annuity plan can be bought.
Unit Plans 1. Child Fortune Plus : Is a plan for children and to meet their educational needs. Its a unit linked plan with long term capital appreciation. 2. Fortune Plus : It is a unit linked assurance plan where premium payment term (PPT) is 5 years and he premium payable in the first year will be 50% of total premium payable under the policy.
3. Market Plus : Is a unit linked pension plan where after a specific period the pension is paid. 4. Money Plus - I : Is a unit linked Endowment plan which has investment plus insurance during the term and you can pay regular premiums. 5. Profit Plus : It is a unit linked Endowment plan where the premium payment term (PPT) is limited to single lump sum, or uniformly over 3, 4 or 5 years. Whole Life Plans 1. Jeevan Anand : Is a combination of two plans- Endowment Assurance and Whole Life plan. 2. Jeevan Tarang : This is a with-profits whole of life plan which provides for annual survival benefit at a rate of 5 % of the Sum Assured after the chosen Accumulation Period.
17
3. The Whole Life Policy : Is a plan mainly to provide for payment of sum assured plus bonuses on the death of the policyholder. Golden Jubliee Plan
New Bima Gold : Where the premiums are paid back during the policy term in installments , besides that life insurance cover is given during the also at the extended term of the plan
18
Entry age Minimum annual premium Minimum sum assured Policy term Premium paying term
Rs. 15,000 quarterly; or Rs. 10,000 per month (3 monthly installments required at issue) You choose your Sum Assured (minimum 5 x annual premium).
Risk profile
0-40% in money market & cash 0-100% in debt instruments & derivatives 0-100% in equities & equity related securities
Maturity Benefit On maturity, your Fund Value will be paid to you. In addition, we will pay an amount equal to: the number of units under your policy at that time; times the excess, if any, of the Guaranteed Maturity Unit Price over the then prevailing unit price
20
Death Benefit
In the unfortunate event of the death of the life insured prior to the maturity date of the policy, we will pay to the nominee the greater of (a) the Fund Value or (b) the Sum Assured reduced for partial withdrawals as follows: Before the life insured attains the age of 60, the Sum Assured payable on death is reduced by partial withdrawals made in the preceding two years. Once the life insured attains the age of 60, the Sum Assured payable on death is reduced by all partial withdrawals made from age 58 onwards.
Partial withdraw
Policy surrender
After 3 policy years and you will get 100% fund value at that time.
21
Addition of riders
Equals all premiums paid, less charges and guaranteed maturity benefit(s),accumulated at 3% per annum
22
AT Death Benefit The sum assured is paid to the nominee upon the death of the life insured (parent) The new life insured is the child and new owner is appointed as per your wishes. The policy is continued as usual except: All riders and risk charges will cease Only the policy administration charge and fund management charge continue, and BSLI will start paying the Maturity Continuation Benefit on a monthly basis until the policy matures. In case of death of the new life insured (child) prior to the end of the Term, higher of 105% of the Fund Value or the Guaranteed Fund Value will be paid and the policy will be terminated.
Charges of policy
Premium allocation charges Fund management charges Mortality charges Surrender charges etc.
23
(3) Birla Sun Life Insurance Saral Jeevan Plan The saral jeevan plan provides the dual benefit of protection and investment. So it is the ideal policy if you want to secure your life and build wealth at the same time.
Poicy parameters
Mode of Premium Payment- Annual, Semi Annual, Quarterly, Monthly. Maturity Benefit Maturity benefit will be sum assured plus fund value at the end of maturity time. Death Benefit Your nominee will receive both sum assured and fund value in the unfortunate event of death. Investment Funds Protector Builder Enhancer
24
Charges of Policy
Premium Allocation Charge- Nil (This means all of your policy premium will be invested in the investment funds of your choice). Fund Management Charge Mortality charges Surrender charges etc.
(4) Birla Sun Life Universal Health PlanThe universal health plan is in addition to the benefit amount payable under each health benefit. This unique benefit helps you and your family with out of pocket health related expenses.
Premium paying frequency policy premiums can be paid yearly, halfyearly, quarterly or monthly Premium According to age of the insured person. (e.g. for 25 Rs. 4756 p.a., for 45- Rs. 6725 p.a., for 55- Rs. 9724 p.a.).
Benefits 1.BSLI pay a fixed benefit amount of Rs. 1000 per day in Hospital plus Rs. 1000 per day in Intensive Care Unit (ICU).
25
In case of an admission for surgical management : 2.if the surgery is listed in covered surgeries: BSLI pay a fixed benefit amount based on the grade of the covered surgery-Rs.
100000, Rs. 50000, Rs. 25000, Rs. 15000 and Rs. 10000 for grade1(major) to 5(minor) respectively. 3.if the surgery is not listed in the covered surgeries: BSLI pay a fixed benefit amount of Rs. 2000 per day in hospital plus Rs. 1000 per day in ICU. Tax benefit The premium paid by you up to 15000 (Rs.20000 for senior citizens) p.a. to insure yourself and/or your family, is eligible for tax benefit under section 80D of the income Tax Act, 1961, which is subject to amendments from to time.
Death/Maturity benefit This plan has no death benefit or maturity benefit. Furthermore, this plan provides for no cash surrender value nor any policy loans.
26
(5) Birla Sun Life Retirement plan Policy parameters Entry Ages
18 years 80 years policy premiums can be paid yearly, halfyearly, quarterly or monthly
Premium
Benefits
In the unfortunate event of death of the policyholder the nominee will receive the higher of:75% of the base premium and all renewal base premiums paid. OR the surrender value at the time plus all accumulated survival benefits.
Tax benefits
Under section 80CCC and 10(10A)
Partially withdraw
You can do partially withdraw min. Rs.5000
27
Chapter 7
FEATURES
The Marriage Endowment/ Educational annuity plan provides a sum assured to be kept aside for the expenses of marriage or higher education of the policyholder's children. Premiums payable for selected term or till death of the life Assured. Benefits will be given only after the selected term.
Maturity benefits
Sum Assured + Bonus
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Accident:
Accident benefit equivalent to basic sum assured would be available by paying appropriate additional premiums in that behalf. An amount equivalent to Sum Assured become payable immediately.
(2)Jeevan saral plan of LIC Plan Details: This plan is appropriate for employees seeking life cover through
Salary Savings Schemes. Eligibility: Minimum 12 Yrs (completed) 10 Maximum 70 years Maximum 60 Nearest Birthday 35
in case of term rider, minimum and maximum age of entry will be 18 and 50 years respectively. Further minimum sum assured will be Rs.1 lakh.
Premium:
Minimum premium: Rs 250 per month for entry age up to 49 years and Rs.400 per month for entry age50 years and above. The premium shall be in multiple of Rs.50 per month.
Premium Mode:
Yearly, Half yearly, Quarterly and Monthly under Salary Saving Scheme.
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Survival Benefits:
The sum payable at maturity however differs for different entry ages and terms. On Maturity the individual will receive maturity sum assured, plus Loyalty additions, if any. The specimen Maturity Sums Assured (MSAs) per Rs.100/monthly premium are given below for some of the ages and terms: Age at Entry 20 40 50 Policy Term 10 yrs 11,156 10,431 8,442
Death Benefits:
Under this plan death cover will be same irrespective of age at entry and term. On death the nominee will receive 250 times the monthly premium, plus return of premiums excluding extra/rider premium premium.
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Min 18 50 2 years Rs. 250 p.m. Yearly, half yearly, quarterly, monthly
Max 70 79 35 years.
AMOUNT (Rs) Rebates Available for Single Premium Rebates Available for Annual Premium
>= 5,00,000 5%
6%
7%
8%
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Features
Death Benefits
If death occurs within 10 years 3% (interest on all premium given)
4% 5%
Policy parameters
Entry age Premium 18-70 (Min) Rs. 5,000 p.a. for Regular premium and Rs. 10,000 for Single premium(Max) No limit
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40-75 (min) NIL- (when no life cover is opted) Rs. 25,000 for Single premium, Rs.50,000 for Regular premium (Max) Regular Premium - 20 times of the annualized premium.
5 years
Investment fund types: Investment in Govt. /Govt. Guaranteed Securities / Corporate Debt Short-term investments such as Investment in money market Listed Equity instruments(Including Shares Govt. Securities &Corporate Debt)
NIL Not less than 15% and not more than 35% Not less than 30% and not more than 50% Not less than 60% and not more than 80%
Fund Type
Not less than 80% 100% Not less than 65% Not more than 85%
Balanced Fund
Growth Fund
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1) Comparison between BSLIs Children dream plan and LICs Marriage Endowment Or Educational Annuity Plan: In BSLI plan policy term is 18 years less the age of child at entry. But in LIC plan policy term is 5-25 years. Premium paying frequency is almost same i.e yearly , half yearly, quarterly, monthly. In case of death benefit: in BSLI plan the sum assured is paid to the nominee upon the death of the life insured (parent). The new life insured is the child and new owner is appointed as per your wishes. In LIC plan if death occurs due to accident then basic sum assured is payable on death immediately and further premiums are not payable. after expiry of the term again basic sum assured + bonus is payable. In BSLI fund value is guaranteed.
34
2) Comparison between BSLIs Saral jeevan plan and LICs Jeevan saral plan In BSLI plan entry age is 18-55 years In LIC plan entry age is 12-60 years In BSLI policy term is 10, 15, and 20 years. In LIC policy term is 10-35 years. In BSLI plan max. Maturity age is 65 years In LIC plan max. Maturity age is 70 years. In BSLI min. premium is 10000 p.a. In LIC plan min. premium is 5000p.a
3) Comparison between BSLIs Retirement plan and LICs New Jeevan Suraksha plan.
In BSLI plan entry age is 18-80 years In LIC plan entry age is 18-70 yrs. In BSLI plan vesting age is 10-40 yrs from entry age (Max. 90yrs.)In LIC plan vesting age is 50-79 yrs.
35
In BSLI plan min. premium is 9600 p.a. In LIC plan min. premium is 3000 p.a. Premium paying frequency is same i.e yearly, half yearly, quarterly, and monthly
Death Benefits:
In BSLI plan the unfortunate event of death of the policyholder the nominee will receive the higher of: 75% of the base premium and all renewal base premiums paid. OR the surrender value at the time plus all accumulated survival benefits.
In LIC plan
If death occurs within 10 years - 3% (interest on all premium given) Between 11 to 20 years After 20 years 4% 5%
36
4) Comparison between BSLI Platinum plus plan and LIC Market plus plan
37
38
Chapter 9 RESEARCH METHODOLOGY MEANING OF RESEARCHBefore understanding Research Methodology, we should understand the meaning of research. Research in common parlance refers to a search for knowledge. One can also def i ne Researc h as a sci ent i fi c and syst emat i c search f or pert i nen ce i nf ormat i on on a specific topic. In fact, research is an art of scientific investigation.
DEFINITION OF RESEARCH -Research is a systematized effort to gain new knowledge Redmann & Mory MEANING OF RESEARCH METHODOLOGYResearch Methodology, it is a way to systematically solve the research Problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with
39
the logic behind them. It is necessary for the researcher to know not only the research.
Data Collection: The objectives of the project are such that both primary and secondary data is required to achieve them. So both primary and secondary data was used for the project . The m ode of col l ect i ng pri mary dat a i s quest i onnai re mode and sources of secondary data are various magazines, books, newspapers, & websites etc
Primary data The primary data are those data which are collected afresh and for the first time, and thus happen to be original in character. Secondary data The secondary data on the other hand, are those which have already been collected by someone else and which have already been passing through the statistical process.
40
Chapter 10
DATA ANALYSIS
Particulars Yes No
No. of respondents 90 10
No. of respondents
NO YES
41
Interpretation: 90 people say that investment in insurance sector is good option and 10are saying not.
No. of respondents 40 60
No. of respondents
BSLI LIC
Interpretation:
42
Particulars Whole life plan Retirement plan Children plan Health plan Golden jubilee Total
70 60 50 40 30 20 10 0 Whole life plan Retirement Children plan Health plan Golden plan jubliee plan Total LIC BSLI
Interpretation:
43
20 people of LIC and 10 of Birla have whole life plan, 18 people of LIC birla have Children plan.
4) What percentage of interest you get from it? Particulars Below 5 % 5-8 % 8-12 % Above12 % No. of respondents LIC 0 14 42 4 No. of respondents BSLI 0 6 28 6
45 40 35 30 25 20 15 10 5 0 Below 5% 5-8% 8-12% Above12% No. of respondents LIC No. of respondents BSLI
Interpretation:
44
14 people of LIC and 6 of Birla are getting 5-8% R.O.I., 42 people of LIC and 28 of Birla are getting 8-12% interest.
5) Why do you invest in this(LIC/BSLI) company? Particulars High interest Good image of CO. Growth of the CO. Annual premium is Reasonable Maturity benefits 12 8 No. of respondents LIC 8 12 18 10 No. of respondents BSLI 12 4 12 4
Mturity benefits
Annual primum is received No. of respondents BSLI No. of respondents LIC Good image of co.
High interest 0 5 10 15 20
45
Interpretation : 12 people of Birla are investing in this company due to its high interest,18 people of LIC say that they are investing in LIC due to growth of the co.
Particulars Yes No
No. of respondents 44 56
No. of respondents
YES NO
Interpretation : 44 people are saying that investment in BSLI is better than LIC, but 56are saying no. (If NO then go to Q.N. 8 otherwise Q.N. 7)
46
Particulars Guaranteed F.V. at maturity Growth rate More ULIP plan Risk covered All above
No. of respondents 10 16 8 4 6
No. of respondents
Guaranteed F.V. at maturity Growth rate More ULIP plan Risk covered All above
Interpretation:
47
16 people are saying that because BSLI gives guaranteed F.V. at maturity time, 8 are saying it has more ULIP plans.
Particulars LIC have govt. stake Brand loyalty of LIC Low A.P. than BSLI High return
No. of respondents 24 14 12 6
No. of respondents
LIC have govt.stake, 24 Brand loyalty of LIC, 14 Low A.P. than BSLI, 12 High return, 6
48
Interpretation : 24 people are saying that investment in LIC is better it has govt. stake, 14are saying it has brand loyalty.
9) When company launch new product , then any information is given to you about that product? Particulars Yes No No. of respondents LIC 24 36 No. of respondents BSLI 16 24
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 No. of respondents LIC No. of respondents BSLI YES NO YES NO
49
Interpretation : 24 people of LIC are saying yes and 36 are saying no, 16 people of BSLI are saying yes and 24 are saying no about providing information.
10) In near future, do you think BSLI will have high growth rate? Particulars Agree Neutral Disagree Cant say No. of respondents 20 26 14 40
50
No. of respondents
45 40 35 30 25 20 15 10 5 0 Agree Neutral Disagree Can't say No. of respondents
Interpretation : 20 people are saying that BSLI will grow in future, 26 are saying it will be neutral, 40 cant say, and 14 are disagree.
51
Chapter 11 Finding
90 people saying that investment in insurance sector is good option and 10 are saying no. 40 people have BSLI policies and 60 have of LIC. 10 people of BSLI have Whole life plan, 4 have retirement plan, 22 have children plan, 4 have health plan. 56 people are saying that investment in LIC is better than BSLI, 44 are saying investment in BSLI is better. Most of the people of both LIC and BSLI are getting rate of interest 8-12% Most of the people have children plan of BSLI. Most of the people invest due to high interest of the policy in BSLI People have more faith in govt. Companies than the private. 14 people invest in LIC due to its brand loyalty. 26 people saying that BSLI growth will be neutral in near future.
52
Chapter 12
SUGGESTIONS
1) Information regarding new product should be provided to the customers. 2) The company should find out the no. of people who are not having any of the insurance plans through an intensive market research and motivate them to get insured. 3) At some level Company should provide information to the customers about the charges of the policy. 4) Company should target each and every class of the society, 5) Charges should be low of the policies. 6) Annual premium should be reasonable. 7) BSLI Company should work in systematic way.
53
Chapter 13
LIMITATIONS
Some of the respondents were not cooperative. Some respondents were hesitating to give business details.
Business is another limitation that the scope of the survey. The reliability and scope of survey greatly relies on the co-operation of the respondents.
54
Conclusion
Here in this study we see that people have more policies of LIC in comparison t o BS LI . Peopl e have more f ai t h i n govt . compani es t han pri vat e. So i t i s necessary for BSLI Co. that it should give more attention to that points or that are as where it lacks for further future growth. Insurance sector is very wide and co. can grow in future
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Bibliography
www.birlasunlife.com www.licindia.com www.google.com http://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authority
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ANNEXURE
NOTE: The information that you will provide will be kept confidential and will be used only for academic Purpose. Our questionnaire will be to those persons who have plans of BSLI or LIC.
1. Do you think that investment in insurance sector is good option (a) Yes (b) No
2. Which companys policy do you have? (a) Birla Sun Life Insurance (b) LIC
3. Which type of policy you have? (a)Whole Life Plan (b) Retirement Plan (c) Children Plan (d) Health Plan (e) Golden jubilee plan (f) any other please specify___________________
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4. What percentage of interest you get from it? (a) Below 5% (b) 5-8% (c) 8-12% (d) Above 12%
5. Why do you invest in this company? (a) High interest (b) good image (c) Company growth (d) Annual premium is reasonable (e) due to maturity benefits (f) Any other please specify ______________________________
6. Do you think that investment in BSLI is better than LIC? (a) Yes (b) No ( If your answer is no then jump to question no. 8)
7. if yes then why? (a) Because BSLI gives guaranteed fund value at maturity time (b) Growth rate of company is high (c) BSLI has more ULIP plans than LIC (d) Risk factor is covered properly (e) all above (f) Any other (please specify)_____________
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8. If no then why? (a) Because LIC is having government stake. (b) Brand loyalty of LIC (c) It has low premium plans than BSLI (d) Investment return is higher than BSLI (e) Any other (please specify)__________________________
9. Whenever company launch new product, then any information is given to you about that product? (a) Yes (b) No
10. In near future BSLI is having high growth rate. (a) Agree (b) neutral (c) disagree (d) cant say
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