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.
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.
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.
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.
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 “Free Look Period” and the same was made mandatory by
IRDA for all other Life Insurance Companies.
SWOT ANALYSIS OF BSLI
STRENGTH:
WEAKNESS:
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.
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.
unlimited switches are given to you to manage your investments. This plan
offers good liquidity to you.
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.
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.
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 :
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.
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.
Children Plans
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.
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.
3. The Whole Life Policy : Is a plan mainly to provide for payment of sum
assured plus bonuses on the death of the policyholder.
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
You can pay your policy premium annually, half-yearly, quarterly or monthly,
subject to a minimum installment premium of:
Maturity Benefit
On maturity, your Fund Value will be paid to you.
In addition, we will pay an amount equal to:
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.
(2) Birla Sun Life Insurance children’s Dream Plan –
Policy parameters
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
Mortality charges
Poicy parameters
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
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.
Policy parameters
18 years – 80 years
Entry Ages
Term
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
FEATURES
Maturity benefits
Accident:
Plan Details: This plan is appropriate for employees seeking life cover through
Salary Savings Schemes.
Eligibility:
Minimum Maximum
Term 10 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 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
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.
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
Death Benefits
Between 11 to 20 years 4%
After 20 years 5%
Premium (Min) Rs. 5,000 p.a. for Regular premium and Rs. 10,000 for
Single premium
(Max) No limit
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)
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
Secured Fund Not less than Not more than 85% Not less than
65% 15% and not
more than
35%
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.
2) Comparison between BSLI’s Saral jeevan plan and LIC’s Jeevan saral plan
In BSLI plan vesting age is 10-40 yrs from entry age (Max. 90yrs.)
In LIC plan vesting age is 50-79 yrs.
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
Between 11 to 20 years 4%
After 20 years 5%
4) Comparison between BSLI Platinum plus plan and LIC Market plus plan
To determine and analyze the Market Potential of the Birla Sun Life
Insurance Company in MOGA City.
To analyze market share of Birla Sun Life Insurance products in Moga city.
MEANING OF RESEARCH-
DEFINITION OF 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 –
Yes 90
No 10
No. of respondents
no, 10
yes
no
yes, 90
BSLI 40
LIC 60
60 60
50
40
40
30
20
10
0
No. of respondents
BSLI
LIC
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
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ho
en
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et
W
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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?
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?
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 ?
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.
No. of respondents
6 Guaranteed F.V. at
10 maturity
Growth rate
4
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?
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?
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?
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
10 people of BSLI have Whole life plan, 4 have retirement plan, 22 have
56 people are saying that investment in LIC is better than BSLI, 44 are
Most of the people of both LIC and BSLI are getting rate of interest 8-12%
Most of the people invest due to high interest of the policy in BSLI
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.
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.
__________________________________
(a)Whole Life Plan (b) Retirement Plan (c) Children Plan (d)
Health Plan
(b) Growth rate of company is high (c) BSLI has more ULIP plans than
LIC
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
9. Whenever company launch new product, then any information is given to you
about that product?