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Performance evaluation of Birla Sun Life Insurance products in

comparison with Life Insurance cooperation (LIC)


Introduction
INSURANCE
The meaning of insurance: Insurance is a policy from a large financial institution
that offers a person, company, or other entity reimbursement or financial
protection against possible future losses or damages.

A simple example will make the meaning of insurance easy to understand. A


biker is always subjected to the risk of head injury. But it is not certain that the
accident causing him the head injury would definitely occur. Still, people riding
bikes cover their heads with helmets. This helmet in such cases acts as
insurance by protecting him/her from any possible danger. The price paid was
the possible inconvenience or act of wearing the helmet; this i.e. equivalent to the
insurance premiums paid.
Major types of insurances are as mentioned below:

 Life insurance: Descendant’s family receives financial benefits. Life


insurances also offer paid proceeds to the beneficiary.

 Automobile insurance: Usually automobile insurances cover damages and


legal financial expenditures of the automobile driver.

 Health insurance: Health insurance covers the expenditures associated to


treatment and medical expenditures.
 Credit insurance: Borrowers often fail to repay debts, loans and mortgages
due to certain unavoidable circumstances, credit insurances can be of great
help during such crisis.
 Property insurance: Property protection insurance provides protection
from risks associated to theft, fire, floods etc.
Life insurance

Life insurance or life assurance is a contract between the policy owner and the
insurer, where the insurer agrees to pay a sum of money upon the occurrence of
the insured individual's or individuals' death or other event, such as terminal
illness or critical illness. In return, the policy owner agrees to pay a stipulated
amount called a premium at regular intervals or in lump sums.

How life insurance works?

There are three parties in a life insurance transaction; the insurer, the insured,
and the owner of the policy (policyholder), although the owner and the insured are
often the same person. For example, if Mr. Rajan buys a policy on his own life, he
is both the owner and the insured. But if Mrs. Anita, his wife, buys a policy on
Rajan’s life, she is the owner and he is the insured. The owner of the policy is
called the grantee (he or she will be the person who will pay for the policy).
Another important person involved is the beneficiary. The beneficiary is the
person or persons who will receive the policy proceeds upon the death of the
insured. The beneficiary 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 insured commits suicide within a
specified time for the policy date (usually two years). Any misrepresentation by
the owner or insured on the application is also grounds for nullification. Most
contracts have a contestability period, also usually a two-year period; if the
insured dies within this period, the insurer has a legal right to contest the claim
and request additional information before deciding to pay or deny the claim.

The face amount of the policy is normally the amount paid when the policy
matures, although policies can provide for greater or lesser amounts. The policy
matures when the insured dies or reaches a specified age. The most common
reason to buy a life insurance policy is to protect the financial interests of the
owner of the policy in the event of the insured's demise. The insurance proceeds
would pay for funeral and other death costs or be invested to provide income
replacing the deceased's wages. Other reasons include estate planning and
retirement. The owner (if not the insured) must have an insurable interest in the
insured, i.e. a legitimate reason for insuring another person’s life. The insurer (the
life insurance company) calculates the policy prices with an intent to recover
claims to be paid and administrative costs, and to make a profit.
MAJOR PLAYERS OF INDIA IN INSURANCE

Reliance Life Insurance is a part of the Reliance group. It is one of the partners
of Reliance Capital Ltd which is a Anil Dhirubhai Ambani Group. Reliance Capital
is one India's most dominant private sector financial services companies. They
offer insurance products which help you with savings as well as give you
protection.

Canara HSBC Life is a joint venture of Canara Bank, HSBC Insurance (Asia
pacific) & Oriental bank of Commerce. The Company got its approval from IRDA
in June 2008 and from that commencing its business. They have more than 4100
branches all over India.

DLF pramerica Life Insurance Company Ltd. is a joint venture between DLF
Limited & Prudential International Insurance Holdings Limited. DLF Pramerica
believes in delivering a secure & enrich life to there customers.

MetLife One of the fastest growing insurance company in India is MetLife. The
company started its operations in between 2000-2001. They have a range of
various products to offer.

ICICI Prudential ICICI Bank with Prudential plc, both well known & strong
financial institutions came together in December 2000 to form an insurance
company - ICICI Prudential Life Insurance.
Max New York Life Max India’s leading multi business corporation & New York
Life joined there hands in 2000.The company started there operations in 2001.
The company is involved in Life & health products.

Bajaj Allianz Bajaj who are into iron & steel, finance, insurance & etc and Allianz
who provides financial services when came together they formed Bajaj Allianz Life
Insurance Company.

Bharti AXA Bharti AXA Life Insurance is a joint venture between Bharti & AXA.
The company started its functionality in December 2006 and they always believe
to be a strong financial institute.

HDFC Standard Life HDFC Standard Life Insurance is a joint venture between
Housing Development Finance Corporation Limited & a Group of Standard Life
Plc.The Company started commencing its business in December 2000.

AEGON Religare AEGON Religare Life Insurance Company Ltd is a joint venture
with AEGON, Religare and Bennett, Coleman & Company a part of Times Group.
AEGON Religare Life Insurance company was launched in July 2008.

Kotak Mahindra A joint venture of Kotak Mahindra group & Old Mutual plc is
known as Kotak Mahindra Old Mutual Funds. The Company started commencing
its business in 2001. The company aim is to help customers in making there
financial decisions.

Future Generali Life Future Generali is a joint venture between Future Group of
India & Italy based Generali Group.Future Generali in India is into both Life & Non
Life businesses in India. The company wants to provide a financial security to all.

SBI Life SBI Life Insurance Company Limited is a joint venture between State
Bank of India and BNP Paribas Assurance. It is present in more than 41 countries
across the world. SBI Life offers a variety of plans in life insurance and pension.

Shriram Life Shriram Life Insurance Company is a joint venture between


Shriram Group and Sanlam Group.Shriram Group is one of India’s most
esteemed financial services & Sanlam Group is one of the largest life insurance
providers of South Africa.

TATA AIG The TATA Group and American International Group Inc together
formed Tata AIG Life Insurance Co. Ltd.Tata Group holds 74% stake in the
insurance venture with AIG holding the balance 26%. They started their
operations in April 2001

Aviva Aviva, one of UK's largest insurance company and world's 5th largest
insurance group. It was one of the first international insurance company to set up
its office in India in the year 1995. They introduced the concept of banc assurance
in India.
IDBI Fortis IDBI Fortis Life Insurance Co. Ltd is a joint venture between three
financial institutes; they are IDBI Bank, Federal Bank and Fortis. They introduced
there plans in March 2008. IDBI owns 48% equity while Federal Bank and Fortis
own 26% equity each.

Sahara The Sahara Pariwar stepped into the insurance business by launching
Sahara India Life Insurance Co. Ltd. They received the IRDA license in February
2004 and started their operations in October 2004. They are the first solely owned
private sector insurance company in India.

ING VYSYA ING Life was established in 2001 as a joint venture between ING
Insurance International B.V. (INGI), ING Vysya Bank Limited and GMR Industries
Limited. At present, INGI, Exide Industries Limited, Ambuja Cement Ltd, Enam
Group are the joint venture partners.

Star Union Star Union Dai-ichi Life Insurance Co.Ltd. is formed by three various
financial institutions. Bank of India, Union Bank of India and Dai-ichi Mutual Life
Insurance Company This firm was incorporated in the year 2007 and got their
IRDA license on the 26th Dec 2008.
Some of the important milestones in the life insurance business in
India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian
soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by
the central government and nationalised. LIC formed by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.
COMPANY PROFILE
Birla Sun Life Insurance Company Limited is a joint venture between The
Aditya Birla Group, one of the largest business houses in India and Sun Life
Financial Inc., a leading international financial services organisation. The local
knowledge of the Aditya Birla Group combined with the expertise of Sun Life
Financial Inc., offers a formidable protection for your future.

The Aditya Birla Group has a turnover of close to Rs. 119000 crores, with a
market capitalisation of Rs. 133875 crores (as on 31st March 2008). It has over
100,000 employees across all its units worldwide. It is led by its Chairman - Mr.
Kumar Mangalam Birla. Some of its key companies are Hindalco, Grasim and
Aditya Birla Nuvo.

Sun Life Financial

Sun life financial –based in Canada-started in 1865.

It operates in all the important markets of the world like Canada, the United
States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India,
China and Bermuda.

Sun Life Financial Inc. has assets under management of over US$404.7 billion
(as on 31st March, 2008). It is a leading performer in the life insurance market in
Canada.

Brands Of Aditya Birla Group


Birla Sun Life Insurance (BSLI) has been operating for 9 years. It has contributed
significantly to the growth and development of the life insurance industry in India.
It pioneered the launch of Unit Linked Life Insurance plans amongst the private
players in India. It was the first player in the industry to sell its policies through the
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. pure term 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 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.
Achievements of BSLI

 1st to introduce ULIP fund options.

 1st to launch illustrations so that customers understand the products better

before they buy.

 1st to issue NAVs of funds for better transparency.

 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.
SWOT ANALYSIS OF BSLI

STRENGTH:

 Multi-channel distribution and one of the largest distribution


networks in India.
 1 Million Policies sold within 3 and half years.
 Training process of the company is very strong.
 According to the change in surrounding environment like
changes in customer requirement.

WEAKNESS:

 Company does not penetrate on the rural market at a time.


 There is no plan for the low income group.
 Fees for the advisor is high than the other companies.
OPPORTUNITY:

Insurance market is very big, where company can expand its business
easily.
 It has many ULIP plans so it can grow in near future.

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 an
government company.
 Plans for all income groups are not available which can create adverse
effect later on the market share of the company.
MAJOR COMPETITOR AT A GLANCE LIC (LIFE INSURACE
CORPORATION)

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 the branches, and branches were made
accounting units. It worked wonders with the performance of the corporation. It
may be seen that from about 200.00 crores of New Business in 1957 the
corporation crossed 1000.00 crores only in the year 1969-70, and it took another
10 years for LIC to cross 2000.00 crore mark of new business. But with re-
organisation happening in the early eighties, by 1985-86 LIC had already crossed
7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100
divisional offices, 7 zonal offices and the Corporate office. LIC’s Wide Area
Network covers 100 divisional offices and connects all the branches through a
Metro Area Network. LIC has tied up with some Banks and Service providers to
offer on-line premium collection facility in selected cities. LIC’s ECS and ATM
premium payment facility is an addition to customer convenience. Apart from on-
line Kiosks and IVRS, Info 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.
It has crossed milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005,
posting a healthy growth rate of 16.67% over the corresponding period of the
previous year.

From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business.
Birla Sun Life Insurance Co. Ltd

Following are the Life Insurance plans that Birla Sun life Insurance
Company Ltd.

1.)Birla Sun Life Insurance Term Plan - This plan can take care of your
financial commitments of yours towards your family by providing large cover at
low cost. Minimum age of entry for this plan is 18-55 and maximum maturity
age is 70 years.

2. Birla Sun Life Insurance Premium Back Term Plan - This is a low cost life
cover promises you to refund the entire premium on maturity or death. Two
options are also there to choose 100% premium back or 125% premium back.
Maximum term period for this plan is 20 years.

3. Birla Sun Life Insurance Guaranteed Bachat Plan - It’s an non


participating endowment plan offers you guaranteed returns and chance to
earn survival benefit from the 3rd year onwards. You can withdraw this benefit
each tear or can use it as to pay the premium dues.

4. Birla Sun Life Insurance Money Back Plus Plan - This is also a non-
participating endowment plan, which gives you maturity and survival both
benefits. One remarkable point is that on every policy anniversary it increases
your cover by an equal amount of your base premium.

5. Birla Sun Life Insurance Gold-Plus II - It’s an investment plan offering


nine-funding option to choose and 100% equity fund option also. Free

unlimited switches are given to you to manage your investments. This plan
offers good liquidity to you.

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 today’s fast life it’s really
easy to buy an insurance plan, which you immediately can purchase just by
providing three health statements to the company. Bsli Saral Jeevan is the best
option to go for.

8. Birla Sun Life Insurance Supreme-Life - It’s a unit linked non-participating


plan providing 8-fund options to choose. It gives a choice of two death benefits.

9. Birla Sun Life Insurance Dream Plan - It’s a unit-linked policy, which
provides you guaranteed returns, 0% allocation charges, and option to double
or triple the guaranteed maturity.

10. Birla Sun Life Insurance ClassicLife 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 SimplyLife - It ensures a lifetime of tax-free


investments to fulfill the needs of your dear ones. It’s a market related plan
provides you a good death benefit amount.

12. Birla Sun Life Insurance PrimeLife Premier - It’s 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 PrimeLife - It is a single premium policy gives
you the benefit of life insurance and investments as well. It’s a non-
participating ULIP policy.

14. Birla Sun Life Insurance Flexi Cash Flow - For this policy you can pay
lump sum premium payment at regular intervals. It will give you 3% guaranteed
returns on net policy charges.

15. Birla Sun Life Insurance Flexi Save Plus - This plan will give you the
choices of 3 fund options, maturity ages & guaranteed returns of 3%.

16. Birla Sun Life Insurance Flexi Life Line - This would provide you a life
long cover till 100 years of age and will give you the option of tax-free partial
withdrawals.

17. Birla Sun Life Insurance Single Premium Bond - This plan gives you the
opportunity to make one time investment with no medical tests and will also
gives you the facility of high entry age. It’s a short term investment plan
provides you the option of 5 years or 10 years term period.
18. Birla Sun Life Insurance Freedom 58 - It’s 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 prepone/postpone it.

20. Birla Sun Life Insurance Children's Dream Plan - It’s a unit-linked policy,
which provides you guaranteed returns, 0% allocation charges, and option to
double or triple the guaranteed maturity.
Various Plans offered by LIC are as follows :

Endowment Assurance Plans

1. Jeevan Amrit : This plan is designed for a higher cover at a lower cost. In this
plan premium payment is limited to 3 or 4 or 5 years and the premium payable
during the first year is higher than the premiums payable in subsequent years.

2. New Janaraksha Plan : Is an Endowment Assurance plan that provides


financial protection against death throughout the term of plan. It pays the maturity
amount on survival to the end of the term.

3. Jeevan Mitra(Double Cover Endowment Plan) : Is an endowment plan which


takes care of the financial needs even if death of the policyholder for the whole
term of the plan.

4. Jeevan Mitra (Triple Cover Endowment Plan) : Is an endowment plan where


thrice the Sum Assured plus all bonuses on the basic sum assured to date is
payable in a lump sum upon the death of the life assured.

5. The Endowment Assurance Policy : This policy has a provisions for the
family of the Life Assured in event of his early death and also assures a lump sum
at a desired age.

6. The Endowment Assurance Policy-Limited Payment : In this policy the


payment of premium can be limited either to a single payment or to a term shorter
than the policy.

Children Plans

1. Jeevan Anurag : Is plan designed for the children educational requirements .


This plan can be taken on the parent’s 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.

7. Child Fortune Plan : Is a unit linked plan which offers long term capital
appreciation.

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.

Money Back Plan

1. Bima Bachat : Is a money-back policy which offers financial security and


assurance to the policy holder and his family. The policy holder has to pay only
one premium.

2. Money Back-20 years : Is an endowment plan where periodic payments of


partial survival benefits are paid during the term of the policy till the policy holder
is alive.As the policy name goes this plan 20% of the sum assured is payable
after 5,10,15 years and the balance 40% accrued bonus is payable at the 20th
year.
3. Money Back 25 years : Is the same as the above plan only in this plan the
40% accrued bonus is payable at the 25th year.

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.
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 the 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 5½ % of the Sum Assured after the chosen
Accumulation Period.

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.
Some main Plans of BSLI:

(1) Birla Sun life insurance Platinum Plus - It is a unit linked, non participating
insurance plan. In this plan, the investment risk is borne by the policyholder but
not if this policy is detained till maturity.

Policy parameters

Entry age 18-70

Minimum annual premium Rs. 50000

Minimum sum assured 5*annual premium

Policy term 10 years

Premium paying term 3 years

Premium and sum assured

You can pay your policy premium annually, half-yearly, quarterly or monthly,
subject to a minimum installment premium of:

Rs. 50,000 per annum

Rs. 25,000 half-yearly

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

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

Partial withdraw after 3 complete policy years.

Minimum partial withdraw rs.5000

Policy surrender After 3 policy years and you will get 100% fund value
at that time.
(2) Birla Sun Life Insurance children’s Dream Plan –

Policy parameters

Life Insured (parent): 18 years – 60 years


Entry Ages
Nominee (child) : 30 days – 13 years

Term 18 years less the age of child at entry

Premium paying Regular policy premiums can be paid yearly, half-


frequency yearly, quarterly or monthly (for ECS only)

Addition of riders Accidental Death & Dismemberment Benefit (ADD)

The annual policy premium is based on:

 The guaranteed maturity benefit and option you choose.


 The enhanced sum assured you desire.
 The plan term and your gender and age at entry.

Guaranteed Equals all premiums paid, less charges and guaranteed


Fund Value maturity benefit(s), accumulated at 3% per annum

Partial
Allowed after 3 complete policy years
Withdrawals

Investment
Protector, Builder, Enhancer
Funds
AT Death The sum assured is paid to the nominee upon the death of the life
Benefit 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.


(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

Entry age 18-55

Policy term 10, 15, and 20 years

Age at maturity 65 or less

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

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 Plan-

The 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.

Policy parameters

18 years – 65 years
Entry Ages

Term 3 years

Premium paying policy premiums can be paid yearly, half-yearly,


frequency quarterly or monthly

According to age of the insured person. (e.g. for 25 –


Premium 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).
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 grade 1(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.

(5) Birla Sun Life Retirement plan

Policy parameters

18 years – 80 years
Entry Ages

Term

Premium paying policy premiums can be paid yearly, half-yearly,


frequency quarterly or monthly

Minimum Rs. 9600 p.a.(premium should be multiple of


Premium
Rs. 1200)

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


Some main plans of LIC

(1) 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.

Entry age 18 (min.) 60(max)

Sum assured 50000 (min) no limit (max)

Term 5 (min) 25 (max)

Mode of payment monthly, qtly, half yrly, yly,

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

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 Maximum

Age 12 Yrs (completed) 60 Nearest Birthday

Term 10 35

Age at maturity Maximum 70 years

In case of term rider, minimum and maximum age of entry will be 18 and 50 years
respectively. Further minimum sum assured will be Rs.1 lakh.

Premium:
Minimum premium: Rs 250 per month for entry age up to 49 years and Rs.400
per month for entry age 50 years and above. The premium shall be in multiple of
Rs.50 per month.

Premium Mode:
Yearly, Half yearly, Quarterly and Monthly under Salary Saving Scheme.

Survival Benefits:
The sum payable at maturity however differs for different entry ages and terms.
On Maturity the individual will receive maturity sum assured, plus Loyalty
additions, if any.
The specimen Maturity Sums Assured (MSAs) per Rs.100/- monthly premium are
given below for some of the ages and terms:

Age at
Policy Term
Entry

10 yrs 15 yrs 20 yrs 25 yrs

20 11,156 19,628 28,039 36,839


40 10,431 17,839 24,598 30,854

50 8,442 13,444 16,164

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.

(3) New Jeevan Suraksha Plan

This pension plan is a vehicle for planning a life long pension and is also tax
deferred. Not only can you plan a pension for life with the help of these annuities
but these schemes also help you reduce your tax liability.

POLICY PARAMETERS

Min Max
Entry Age 18 70
vesting age 50 79
35 years.
deferment period 2 years

Premium Rs. 250 p.m.


Yearly, half yearly,
Mode of payment
quarterly, monthly
Features

>=1,00,000 < >=2,00,000 <


AMOUNT (Rs) >= 5,00,000
2,00,000 5,00,000
Rebates Available
3% 4% 5%
for Single Premium
Rebates Available
for Annual 6% 7% 8%
Premium

Death Benefits

If death occurs within 10 years - 3% (interest on all premium given)

Between 11 to 20 years 4%

After 20 years 5%

(4) LIC's Market Plus Plan

It is a unit linked deferred pension plan. The policyholder


can choose the plan with or without risk cover. He can also choose the level of
cover within the limits, which will depend on the mode and amount of premium
he/she desires to pay. The allocated premium will be utilized to buy units as per
the selected fund type.
The Policyholder's Unit Account will be subject to deduction of charges. Units will
be allotted and cancelled based on the Net Asset Value (NAV) of the respective
fund of the date of allotment / cancellation. There is no Bid-Offer spread (both the
Bid price and Offer price of units will be equal to the NAV). The NAV will be
declared on a daily basis and will be based on the investment performance, Fund
Management Charges (FMC) and whether fund is expanding or contracting under
each fund type.
Policy parameters

Entry age 18-70

Premium (Min) Rs. 5,000 p.a. for Regular premium and Rs. 10,000 for
Single premium

(Max) No limit

Vesting age 40-75

Sum Assured (min) NIL- (when no life cover is opted) Rs. 25,000 for Single
premium, Rs. 50,000 for Regular premium (When life cover is opted)

(Max) Regular Premium - 20 times of the annualized premium.

Minimum Deferment period 5 years

Investment fund types:

Investment in
Short-term investments such
Govt. / Govt. Investment in
as money market
Fund Type Guaranteed Listed Equity
instruments(Including Govt.
Securities / Shares
Securities & Corporate Debt)
Corporate Debt

Not less than


Bond Fund 100% NIL
80%

Secured Fund Not less than Not more than 85% Not less than
65% 15% and not
more than
35%

Not less than


Not less than 30% and not
Balanced Fund Not more than 70%
50% more than
50%

Not less than


Not less than 60% and not
Growth Fund Not more than 40%
20% more than
80%
Comparison between some main products of BSLI and LIC

1) Comparison between BSLI’s Children dream plan and LIC’s 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.


o In LIC plan fund value is not guaranteed.

2) Comparison between BSLI’s Saral jeevan plan and LIC’s 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 BSLI’s Retirement plan and LIC’s 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.

 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 4%

After 20 years 5%
4) Comparison between BSLI Platinum plus plan and LIC Market plus plan

 Entry age in BSLI and LIC is same i.e. 18-70 years.

 In BSLI min. annual premium is 50000p.a.

• In LIC plan premium is 10000p.a.

 In BSLI plan maturity benefit is guaranteed

• In LIC plan maturity benefit is not


guaranteed
Objectives of study

 To determine and analyze the Market Potential of the Birla Sun Life
Insurance Company in MOGA City.

 To study and determine the competitor (LIC) position in the market.

 To analyze market share of Birla Sun Life Insurance products in Moga city.

 To analyze the customer satisfaction regarding LIC and BSLI.


RESEARCH METHODOLOGY-

MEANING OF RESEARCH-

Before understanding Research Methodology, we should understand the


meaning of research. Research in common parlance refers to a search for
knowledge. One can also define Research as a scientific and systematic search
for pertinence information 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”

MEANING OF RESEARCH METHODOLOGY-

Research 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 the logic behind them. It is necessary for
the researcher to know not only the research.

Data Collection: - The objectives of the project are such that both primary and
secondary data is required to achieve them. So both primary and secondary data
was used for the project. The mode of collecting primary data is questionnaire
mode and sources of secondary data are various magazines, books, newspapers,
& websites etc.
Primary data

The primary data are those data which are collected afresh and for the first time,
and thus happen to be original in character.

Secondary data

The secondary data on the other hand, are those which have already been
collected by someone else and which have already been passing through the
statistical process.

Sample size –

100 people of MOGA City were selected

Research ----- Purposive research


DATA ANA

1) Do you think that investment in Insurance sector is good option?

Particulars No. of respondents

Yes 90

No 10
No. of respondents

no, 10

yes
no

yes, 90

Interpretation : 90 people say that investment in insurance sector is good option


and 10 are saying not.
2) Which company’s policy do you have?

Particulars No. of respondents

BSLI 40

LIC 60

60 60

50
40
40

30

20

10

0
No. of respondents
BSLI
LIC

Interpretation: 40 people have BSLI policies and 60 have LIC.


3) Which type of policy you have?

Particulars No. of No. of


respondents respondents
LIC BSLI
Whole life plan 20 10

Retirement plan 10 4
Children plan 18 22

Health plan 6 4
Golden jubilee 6 0
plan
Total 60 40

25 22
20
20 18
No. of respondents
15 LIC
10 10
10 No. of respondents
6 6 BSLI
4 4
5
0
0
an
n
an

an

an
la

pl
pl

pl

pl
tp

e
e

lth
en

le
re
lif

bi
ea
m

ld
le

ju
ire

hi

H
ho

en
C
et
W

d
ol
G

Interpretation: 20 people of LIC and 10 of Birla have whole life plan, 18 peopl
22 of birla have Children plan.
4) What percentage of interest you get from it?

Particulars No. of No. of


respondents respondents
LIC BSLI
Below 5 % 0 0

5-8 % 14 6

8-12 % 42 28

Above12 % 4 6

45 42
40

35
30 28
No. of respondents
25
LIC
20 No. of respondents BSLI
15 14

10
6 6
5 4
0 0
0
Below 5 % 5-8 % 8-12 % Above12 %

Interpretation: 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 No. of respondents No. of respondents


LIC BSLI
High interest 8 12
Good image of CO. 12 4
Growth of the CO. 18 12

Annual premium is 10 4
reasonable
Maturity benefits 12 8

8
Maturity benefits 12

Annual premiumis 4
reasonable 10

12
Growth of the CO.
18

4
Good image of CO.
12

12
High interest
8

0 5 10 15 20

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.
6) Do you think that investment in BSLI is better than LIC ?

Particulars No. of respondents

Yes 44

No 56

No. of respondents
Yes No

44

56

Interpretation: 44 people are saying that investment in BSLI is better than LIC,
but 56 are saying no.

(If NO then go to Q.N. 8 otherwise Q.N. 7)


7) If yes, then why?

Particulars No. of respondents


Guaranteed F.V. at maturity 10
Growth rate 16
More ULIP plan 8
Risk covered 4
All above 6

No. of respondents

6 Guaranteed F.V. at
10 maturity
Growth rate
4

More ULIP plan

Risk covered
8

All above
16

Interpretation: 16 people are saying that because BSLI gives guaranteed F.V. at
maturity time, 8 are saying it has more ULIP plans.
8) If no, then why?

Particulars No. of respondents


LIC have govt. stake 24
Brand loyalty of LIC 14
Low A.P. than BSLI 12
High return 6

High return, 6

Low A.P. than LIC have govt. LIC have govt. stake
BSLI, 12 stake, 24 Brand loyalty of LIC
Low A.P. than BSLI
High return

Brand loyalty of
LIC, 14

Interpretation: 24 people are saying that investment in LIC is better it has govt.
stake, 14 are saying it has brand loyalty.
9) When company launch new product , then any information is given to you
about that product?

Particulars No. of respondents No. of respondents


LIC BSLI
Yes 24 16
No 36 24

40 36
35
30 24
25 24
20
15 16
10
Yes
5 No
0 No
Yes
respondents

respondents
No. of

No. of
LIC

BSLI

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.` 67
10) In near future, do you think BSLI will have high growth rate?

Particulars No. of respondents


Agree 20
Neutral 26
Disagree 14
Can’t say 40

No. of respondents

40
35
30
25
20 40
No. of respondents
15 26
10 20
14
5
0
Agree Neutral Disagree Can’t say

Interpretation: 20 people are saying that BSLI will grow in future, 26 are saying it
will be neutral, 40 can’t say, and 14 are disagree.

Findings
 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.


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.


LIMITATIONS

 Some of the respondents were not cooperative.


 There are chances of biased information provided by the
respondents.

 As the sample size is small compared to the total population,


therefore there can’t be full accuracy.
 The time was limited.
 Area was limited.
Conclusion

Here in this study we see that people have more policies of LIC in comparison to
BSLI. People have more faith in govt. companies than private. So it is necessary
for BSLI Co. that it should give more attention to that points or that areas where it
lacks for further future growth. Insurance sector is very wide and co. can grow in
future.
Bibliography

 www.birlasunlife.com

 www.licindia.com

 www.google.com

 Newspapers
ANNEXURE

 Name
____________________________________________________________
______
 Addres______________________________________________________
___________
 Gender_________Age ________Contact No.
__________________________________

1. Do you think that investment in insurance sector is good option

(a) Yes (b) No

2. Which company’s 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___________________

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)_____________

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

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) can’t say

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