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CHAPTER 1 INTRODUCTION

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1.1 INTRODUCTION The study named An organizational study of Birla Sun Life Insurance Co. LTD. is conducted at the Punalur branch in Kollam district. The organizational study is intended to access and to acquire the knowledge regarding the functional as well as the management aspects of the organization. Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group 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 value proposition to customers. An organization study involves the study of the structure and functioning of its departments. Organizing is one of the important functions of Management. How life insurance works? There are three parties in a life insurance transaction; the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person. For example, if John Smith buys a policy on his own life, he is both the owner and the insured. But if Mary Smith, his wife, buys a policy on John's life, she is the owner and he is the insured. 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.
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1.2 OBJECTIVES OF THE STUDY

 To get an overview of the general insurance industry  To study the overall working of Birla Sunlife Insurance Co. Ltd.  To understand the organizational structure of BSLI Ltd.  To study the functions of different departments


To understand SWOT analysis of the organization.

1.3 METHODOLOGY In the broader sense, we can say that there are two types of data. They are

1. PRIMARY DATA Primary Data are those collected by the investigator himself for the first time. For collecting primary data, I had discussions with the manager of the Punalur Branch, employees, staffs, clients etc.

2. SECONDARY DATA Secondary Data are those which have been collected by some other person for their purpose and published. This was made from the Companys websites, brochures and other documents like yearly diaries, calendars etc.

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1.4 SCOPE OF THE STUDY The study was conducted for a period of 30 days and the scope of study is affected by the limitation of time. The findings and suggestions of the study have to be perceived in the framework of these limitations .The main aim behind the study of researcher is to learn the managerial aspects of how to plan, organize, implement & direct the activities related to the project provided by Birla Sunlife Insurance Ltd.. It helps to understand about doing things in a professional atmosphere. The researcher gets a professional attitude as an intern inside the organization. The company can identify their recent impact among customers about their service quality and improve whether it needs.

1.5 LIMITATIONS OF THE STUDY

 The time allotted for conducting the organizational study was only 30 days. It is not enough for understanding about the organization in detail.  Unavailability of some documents which were confidential.  Employees were busy in their work so they could not give more information.  There may be errors due to the bias of the respondents.

 The study is limited to my experience and knowledge.

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CHAPTER 2 OVERVIEW OF ORGANISATION & INDUSTRY

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2.1 INDUSTRY PROFILE The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

A BRIEF HISTORY OF THE INSURANCE SECTOR

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:  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 taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

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Boasting of the largest number of operational life insurance policies in the world, the Indian insurance industry has emerged as a serious destination in the global insurance market. Until 1999, the business of insurance in India was the exclusive privilege of two state-owned corporationsthe Life Insurance Corporation of India (LIC) and the General Insurance Company of India (GIC).

The Government of India took a major step towards liberalization of this industry in March 2000 and brought into effect the Insurance Regulatory Development Authority Act (IRDA Act). The IRDA Act opened the market by doing away with all entry-level restrictions on private insurers. Thereafter, it has been four years of consistent growth. With the current potential premium income of the country estimated India is seen as the sixth largest market in the world.

While 80% of its population remains without life insurance and some of the world's lowest health and non-life insurance cover levels, the potential of the world's seventh largest and second most populous country cannot be overlooked. Prospective insurers have a lot to gain from the 312 million middle-class consumers in India, who 10 have the financial ability to purchase insurance. With only 2.5% of the country's insurable population currently insured, the market still needs to be tapped effectively.

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THE INDIAN INSURANCE MARKET

From the Indian Life Insurance Company Act in 1912 to the 1RDA Act; in 1999, regulation of insurance business in the country has come a long way. Insurance is a subject of federal law and all insurance business in India has been nationalized. The two major legislations dealing with insurance are the Insurance Act, 1938 and the IRDA Act, 1999. Marine insurance in the country is governed by the Indian Marine Insurance Act, 1963. Similarly, fire and marine insurance are dealt with under the Insurance Act, 1972 and the: General insurance Business

(Nationalization) Act, 1972. These enactments contain provisions relating to the constitution, management and winding up of insurance companies and the conduct of those types of insurances.

A Tariff Advisory Committee (TAG) is established under the Insurance Act to regulate rates, terms, conditions and advantages that maybe offered by insurers for General Insurance Business relating to Fire, Marine (Hull), Motor, Engineering and Workmen's Compensation in India.

In 1999, the IRDA was set up under the IRDA Act. Companies, aspiring to carry on insurance and reinsurance business in India, are required to register with IRDA, which is the sole authority for granting licenses to agents. There is neither a restriction on the license numbers that may be granted nor a system of composite licenses for life and non-life insurance companies in India. Insurance companies are strictly forbidden from dealing with products beyond their scope of license. This implies that, a life insurance company cannot sell non-life insurance and vice versa. Insurance agents are, however, allowed to sell both life and non-life products (composite insurance).

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In tune with the Indian government's system of checks and balances imposed through sector specific Foreign Direct Investment (FDI) limits, IRDA prohibits 100% foreign ownership of an Indian insurance company. An Indian promoter is required to invest either wholly or team up with a foreign insurer, which can own no more than 26% of the shares in any new venture. The Indian promoter must then sell the majority of his shares to the Indian public through a public offering after 10 years and retain only up to 26% of the shares that is, the same percentage as that of the foreign investor. IRDA is careful in granting licenses and has set up strict standards for all aspects of insurance in India. With the limit on FDI in the sector, the government ensures that state-run agencies such as the LIC and GIG can maintain their prominence. In June 2003, the Law Commission prepared a paper identifying 13 potential grounds of revision to the Insurance Act and the IRDA Act, including merger of relevant provisions of the two acts, as well as harmonization of the Insurance Act with other rules and regulations in the sector. The finance ministry is already working towards comprehensive amendments to the Insurance Act and the IRDA Act, which will further simplify procedural issues. A major indication of the government's efforts to invite Private Indian and foreign insurers to invest in the liberalized market is the FDI cap hike announced by the finance ministry in 2004. These changes, however, require formal amendments to the IRDA Act, which are still to be adopted.

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Major Players in the Market The Indian insurance sector till recently comprised of only two state insurersthe LIC, for life insurance, and the GIG, for general insurance. In December 2000, GIG subsidiaries (Oriental Insurance Co. Ltd., New India Assurance Co. Ltd., National Insurance Co. Ltd. and United India Insurance Co. Ltd.) were restructured as independent insurance companies. At the same time, GIG itself was converted into a national reinsurer. In July 2002, Parliament passed a bill, which cut the formal relationship between the four subsidiaries and GIG. In December 2000, GIG subsidiaries (Oriental Insurance Co. Ltd., New India Assurance Co. Ltd., National Insurance Co. Ltd. and United India Insurance Co. Ltd.) were restructured as independent insurance companies. At the same time, GIG itself was converted into a national reinsurer. In July 2002, Parliament passed a bill, which cut the formal relationship between the four subsidiaries and GIG. Private Players- Life and Non-Life Insurance Begun in 1818, with the establishment of the Oriental Life Insurance Company in Calcutta, the business of life insurance in India has come a long way. The most popular products in this sector are 'Endowment' and 'Money Back' policies. More than 80% of the Indian life insurance business comes from these two products. The major players in this field include:

 Birla Sun Life Insurance Co. Ltd.  Dabur CGU Life Insurance Company Pvt. Ltd.  Bajaj Allianz Life Insurance Co. Ltd.  ICICI Prudential Life Insurance Co. Ltd.  Aviva Life Insurance Co. Ltd.  Metlife India Insurance Co. Pvt. Ltd.
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 ING Vysya Life Insurance Co. Pvt. Ltd.  Life Insurance Corporation of India  Max New York Life Insurance Co. Ltd.  Om Kotak Mahindra Life Insurance Co. Ltd.  SBI Life Insurance Co. Ltd.  HDFC Standard Life Insurance Co. Ltd.  Tata AIG Life Insurance Co. Ltd.  Reliance Life Insurance Co. Ltd Consistent growth has been observed in the private insurance markets. Though LIC has been in the country for a long time, it didn't tap much of the rural market. It only concentrated on the endowment and money back policies. Private insurers had taken an advantage of this and had come out with innovative products like Unit-Linked Insurance Products (ULIPs). As a competition now, LIC had also started coming out with ULIPs. The private insurance market has grown despite the continued existence of the public sector providers. LIC has concentrated on retaining its market in traditional products like endowment and money back policies, and has not slackened its hold in the rural areas. This has prompted many of the private companies to market new and innovative products as a means of competition. LIC in turn is now moving towards new products like unit linked life products which to date have mainly been sold by the private sector.

The non-life sector primarily consists of fire and miscellaneous risk insurance policies. Also, since motor vehicle cover is compulsory in India, it acts as another chief source of business in the non-life sector.

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Major players in the non-life sector in India include:  Allianz Bajaj General Insurance Co. Ltd.  ICIC1 Lombard General Insurance  IFFCO Tokyo General Insurance  Reliance General Insurance  Royal Sundaram Alliance Insurance
THE REINSURANCE MARKET

Whilst its (GIC's) four independent subsidiaries now look after general insurance, GIC itself is the primary reinsurer in the Indian market. All insurance companies in India have to give at least 20% of their reinsurance business to GIC. GIC reinsures their potential liabilities further with international companies such as Swiss Re and Munich Re. This ensures that GIC's role, as the national reinsurer, is maintained despite foreign players in the fast evolving Indian insurance market.
FOREIGN INFLUX

In the last three years, despite the equity ratio restrictions, foreign companies have collectively managed to corner a considerable share of the Indian insurance market. Investment generally takes two forms: Outsourced BPO operations and direct shareholding. A recently published Research and Markets Report in an American insurance journal emphasized this trend and set out advantages for the US companies to consider India as an insurance BPO center. Some of the advantages include: Established destination for outsourcing, low costs, near-shore services, Indian IT outsourcers extending relationships with insurers, and Indian vendors expanding to establish a multi-location presence to minimize the risk to their business from foreign competition.

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For example LIC, hitherto the virtual monopolist in the country's insurance sector has recently witnessed a decline in its new premium business. Between April 2004 and February 2005, its share of first year premium dropped by 9.3%, i.e., to 77.87% from a market share of 87.22% in the preceding year. But, there is still not too" much cause for concern for Indian insurers; foreign insurers at present have a share of just 2% in the country's life insurance business and 1% in the non-life insurance business.
GROWTH

Insurance business in India is growing at the rate of 15-20% annually and IRDA has estimated that it is currently of the order of Rs. 812.50 cr. When combined with banking services, it adds about 7% of the country's GDR Insurance penetration (i.e., premiums as percentage of GDP) has increased from 2.32% in 2000 to 2.88% in 2003. Likewise, insurance density (i.e., premium per capita) has increased from Rs. 435.897 in 2000 to Rs. 722.092 in 2003. Such changes have caused a climb in the country's ranking from 23rd in the worldin terms of total premium volumesin 2000, to 19th in 2003. India's share in the world market has increased from 0.41% to 0.59% during the same period. There has been an 83% increase in the premium collected in the three years following the passage of the IRDA Act. As already noted, the total premium collected by the insurers both life and non-life in the year 2004-05 is estimated to be about Rs. 253.43 bn during the fiscal year 2004-05, (Rs. 66 bn in life and about Rs. 176.1 bn in non-life premiums). By comparison, estimates for the year 2000-01 put the total premiums at about Rs. 440 bn (Rs. 352 bn in life and Rs. 88 bn in non-life premiums). The average size of life insurance cover before privatization was around Rs. 50,320. That has since risen to about Rs. 80,500.
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The state-owned life insurerLIC, along with 13 private players, mopped up Rs. 65.22 bn in premium in the first four months of this fiscal by selling about 62 lakh new policies. And 55 lakh new policies have been sold by LIC alone which helped it to make an 8.74% rise in premium income at Rs. 49.7 bn during April-July, this fiscal. The traditional life insurance cover, provided by LIC, has so far been dominated by the savings policies. Term life' policies have accounted for less than 2% of the insurance premium of LIC. The new life insurance companies are concentrating on term life policies in the hope that this will be their main stream of business. Private players have an average policy size of Rs. 1, 15,000. The 13 private players have increased their market share to 23.81% from 17.28% in 2004. In the forefront is Birla Sunlife with a market share of 7.12% making a 49% growth in business at Rs. 4.64 bn. Then comes, Bajaj Allianz, HDFC Standard, Tata AIG, ICICI Prudential, SBI Life, Max New York and Aviva.
DISTRIBUTION AND INTERMEDIARIES

The industry is looking at new modes of development and distribution such as technology. The IT expenses of the insurance sector in India, at present, are estimated at Rs. 80-100 cr per annum. Public sector giant, LIC, has large investments in IT. Among private players, Birla Sun Life is a major IT investor with Rs. 35 cr spent since inception. Amidst the steady industry growth is the small, but ever-increasing role of intermediaries. Until two years ago, distribution of life insurance products was only through pure life insurance agents who did not sell any other product. Today, there are alternate channels like bancassurance, brokers, corporate agents and direct marketing through the Internet. ICICI Prudential Life, the second largest life company in the country, attributes 28% of its business premium in 2003 to alternate distribution contributions.
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THE INACTIVE HEALTH INSURANCE MARKET

The number of medical insurance policies sold in India has increased from 7.53 million in 2001-02 to 10.28 million in 2003-04. However, the lack of a comprehensive and accurate database has impeded the growth of the health insurance sector, since this is vital for effective business planning and risk allocation. The World Health Report 2000 estimated private spending in India to be 87% of the total health spending. Of this, 84.6% was made from out-of-pocket expenditure." This is despite IRDA's Rs. 90,000 cr estimation of the market size and 10% annual growth rate. Health insurance schemes in India, at present, are in the form of indemnity-based products under which, payment to the health provider is first made by the sick individual and this amount is later reimbursed (partly or fully) by the insurance company to the insured. A large section of the population cannot afford such large payments at the time of illness even if these payments are reimbursed later and, thus tend not to take up this type of insurance. Furthermore, the system provides for reimbursement only in case of hospitalization, not for outpatient care, or allopathic treatment or alternative systems of medical care. Government employees in India, unlike the general public, enjoy the benefit of being covered under several state provided schemes such as the Employees States Insurance (ESI) and Central Government Health Schemes (CGHS) For the rest of the population, there is the Mediclaim, which offers cover for more general medical treatment, and 'Jan Arogya Bima' which covers emergency medical treatment, only. Post-liberalization, new general insurers have introduced deviants of the Mediclaim while life insurers have introduced some health riders to their life policies, which have a negligible effect.

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Health insurance in India remains a minor percentage of the public sector non-life insurers' business portfolios. The situation has not improved even after liberalization and the private companies have only focused on establishing their business networks by enlarging their life portfolios. Only 0.2% of India's 1.1 billion people are covered under medical insurance as against America where 75% of the population has health cover. With the supply of health services (particularly in-patient facilities) being weak in rural and remote areas, demand for insurance has naturally been constrained. Health insurance requires a well-informed, sizeable and relatively prosperous middle -class to grow. This demography now exists in India, and is showing every sign of getting larger. As a result, both public and private sector companies now seem to be interested in taking the required steps to create a better base for the growth of health insurance. As one of the main constraints to popularizing health insurance has been the inadequacy of data, IRDA has concentrated on identifying the existing obstacles to database creation and the manner in which they can overcome. The subgroup of the Working Group on Health Insurance made certain recommendations for a methodology of collecting data on a uniform basis. IRDA is taking up this issue with industry members, and is pressing for implementation. Third Party Administrators (TPAs) are being looked at as a major tool for enhancement.

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2.2 COMPANY PROFILE Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group 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 value proposition to customers.

Sun Life Financial and its partners today have operations in key markets worldwide, including India, Canada, the United States, the United Kingdom, Hong Kong, Philippines, Japan, Indonesia, China and Bermuda. Sun Life Financial Inc. had assets under management of over US$ 386.82 billion, as on 31 March 2007. Sun Life Financial Inc. is a leading performer in the life insurance market in Canada.

BSLI in its five successful years of operations has contributed significantly to the growth 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 Bank assurance route and through the internet. It was also the first private sector player to introduce a pure term plan in the Indian market. This was supported by sales practices, which brought a degree of transparency that was entirely new to the market. The process of getting sales illustrations signed by customers, offering a free look period on all policies, which are now industry standards were introduced by BSLI.

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Being a customer centric company, BSLI has invested heavily in technology to build world class processing capabilities. BSLI has covered more than one and a half million lives since inception and its customer base is spread across 100 cities in India. All this has assisted the company in cementing its place amongst the leaders in the industry in terms of new business premium income. Birla Sun Life Insurance (BSLI), one of the leading private life insurers in India today announced the inimitable achiever, cricketer Kapil Dev as their corporate brand ambassador. The cricketing supremo will be endorsing BSLI in all its marketing initiatives. Birla Sun Life Insurance is a value-driven brand which has a national brand recall of 70 per cent. The objective of appointing a brand ambassador is to grow its brand recall as it goes national in its distribution reach and fuel business growth. As a brand ambassador, Kapil Dev will play a key role in the brand and product marketing and promotional activities. BSLI has always used an integrated marketing approach, which will be strengthened further.

Birla Sun Life Insurance (BSLI), in its five successful years of operations, 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 banc assurance route and through the internet. It was the first private sector player to introduce a pure term plan in the Indian market. This was supported by sales practices which brought a degree of transparency that was entirely new to the market. The process of getting sales illustrations signed by customers and offering a free look period on all policies, which are now industry standards, were introduced by BSLI. Being a customer-centric company, BSLI has invested heavily in technology to build world class processing capabilities. BSLI has covered more than a million lives since inception and its customer base is
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spread across more than 1000 towns and cities in India. All this has assisted the company in cementing its place amongst the leaders in the industry in terms of new business premium income. The company's current capital base is Rs.520 crore.

About the Aditya Birla Group The Aditya Birla Group has a turnover close to Rs.38,000 crore (as on 31 March 2008) and is one of the largest business houses in India. It enjoys a leadership position in all the sectors in which it operates. With over 75 business units spanning the South East Asian belt, Africa, Canada and the UK among others, it is reckoned as India's first multinational corporation. The group is anchored by eight lakh shareholders, with a market capitalization of Rs.53, 400 crore.

A US $29 billion corporation in the League of Fortune 500, the Aditya Birla Group is anchored by an extraordinary work force of 130,000 employees, belonging to 40 different nationalities. Over 60 per cent of its revenues flow from its operations across the world.

The Aditya Birla Group is a dominant player in all its areas of operations viz; Aluminium, Copper, Cement, Viscose Staple Fibre, Carbon Black, Viscose Filament Yarn, Fertilisers, Insulators, Sponge Iron, Chemicals, Branded Apparels, Insurance, Mutual Funds, Software and Telecom. The Group has strategic joint ventures with global majors such as Sun Life (Canada), AT&T (USA), the Tata Group and NGK Insulators (Japan), and has ventured into the BPO sector with the acquisition of TransWorks, a leading ITES/BPO company.

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About Sun Life Financial Inc Sun Life Financial Inc. is a leading international financial services organisation providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of 31 March 2008, the Sun Life Financial group of companies had total assets under management of US$ 343 billion.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol "SLF".

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VISION

To be a world class provider of financial security to individuals and corporate and to be amongst the top three private sector life insurance companies in India

MISSION

To be the first preference of our customers by providing innovative, need based life insurance and retirement solutions to individuals as well as corporate. These solutions will be made available by well-trained professionals through a multi channel distribution network and superior technology.

Our endeavor will be to provide constant value addition to customers throughout their relationship with us, within the regulatory framework. We will provide career development opportunities to our employees and the highest possible returns to our shareholders

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BOARD OF DIRECTORS  Mr. Kumar M Birla  Mr. Donald A Stewart,  Mr. Bishwanath N Puranmalka  Mr. Ajay Srinivasan  Mr. Gary M Comerford  Mr. Suresh N Talwar  Mr. Gian P Gupta  His Highness Maharaja G Singh  Mr. Stephan Rajotte  Dr. Bharat K Singh INVESTMENT COMMITTEE

 Mr. B. N. Puranmalka  Mr. Eugene Lundrigan  Mr. Ajay Srinivasan  Mr. Vikram Mehmi  Mr. Mayank Bathwal  Mr. Fabien Jeudy  Mr. Vikram Kotak  Ms. Keerti Gupta

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MANAGEMENT TEAM Mr. Vikram Mehmi President & Chief Executive Officer Mr. Mario Braganza Chief Operating Officer Mr. Mayank Bathwal Chief Financial Officer

Mr. E.N. Goveia Head - Direct Sales Force Mr. Bhavesh Sanghvi Head - Group Life & Pensions Ms. Anjana Grewal Senior Vice President Marketing & Communications Mr. K H Venkatachalam Vice President - Human Resource Mr. Lalit Vermani Chief & Vice President Compliance Mr. Vikram Kotak Vice President Investments

Mr. Amit Punchhi Senior Vice President Third Party Distribution Mr. Snehal Shah Senior Vice President Operations

Mr. Rajesh Bhojani Senior Vice President DSF Expansion Mr. Fabien Jeudy Vice President, Appointed Actuary Mr. Melvyn D'souza Vice President - Risk Management and Internal Audit

Mr. Bhalachandra Nayak Vice President Strategy

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2.3 PRODUCT PROFILE  Insurance Plans Life is unpredictable. But in face of adversity, our responsibilities towards our parents, children and loved ones need not be compromised. Insurance planning equips you to smooth out the uncertainties and adversities that life might send your way, so that the best that life has to offer, secure in the knowledge that your beloved ones are well provided for.

BSLI offers a complete range of insurance products

i. ii. iii. iv. v. vi. vii. viii. ix. x.

Protection Plans Savings Plans Child Plans Investment Plans Retirement Plans Group Plans Rural Plans Plans for NRIs Keyman Plans Riders

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 Protection plans BSLI offers LifeGuard - a set of pure protection plans. Choose from amongst three different product structures to insure your life and provide total security to your family, at a very affordable cost.

Level Term Assurance with return of premium o On death the entire sum assured will be paid.

o On maturity, all the premiums paid will be returned.

y Level Term Assurance without return of premium o On death the entire sum assured will be paid. o No survival or maturity benefits. o You can also enhance the above two policies by adding Accident & Disability Benefit Rider and Waiver of Premium Rider (WOP).

y Level Term Assurance - Single premium: o On death the entire sum assured will be paid. o No survival or maturity benefits

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 SAVINGS PLANS BSLI offers a variety of policies that give you the benefits of protection and the opportunity to save for important assets or events, like a home, a car or a wedding.

a) Invest Shield Cash A regular premium unit-linked insurance plan with an assurance of Capital Guarantee with the added advantage of flexible liquidity option. An ideal plan for long term planning with the benefit of liquidity.

The key features of the plan are:

 Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of the annual premium. You can also choose the term of the plan.

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

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

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

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

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 Flexibility to make additional investment with the help of the top-up facility.  Flexibility to increase / decrease your annual premium amount  Facility of Automatic Premium Payment- With this facility you can take a temporary break from premium payment.

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

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

With Automatic Premium Payment facility, you can avail a temporary break from premium payment for a maximum of 1 year. This facility is available once if the premium paying term is less than 15 years and twice, if it is 15 years or more.

You can also enhance your policy by adding Accident & Disability Benefit Rider , Waiver of Premium Rider and Critical Illness Rider .

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b) Invest Shield Life A regular premium unit-linked insurance plan with an assurance of Capital Guarantee. An ideal plan for your long-term savings and protection requirement

The key features of the plans are

 Additional credits payable as a percentage of the initial annual premium are paid along with the death or maturity benefit.  Additional insurance for 10 years after the maturity, for an amount of 50% of the Sum Assured.  Flexibility to make additional investment with the help of the top-up facility.  Flexibility to increase / decrease your annual premium amount  Facility of Automatic Premium Payment- With this facility you can take a temporary break from premium payment.  Total transparency with the premium allocations, and other charges declared upfront. The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all charges) along with the declared bonus interests. With Automatic Premium Payment facility, you can avail a temporary break from premium payment for a maximum of 1 year. This facility is available once if the premium paying term is less than 15 years and twice, if it is 15 years or more. The capital guarantee is applicable only on the invested premium and the declared bonus interests.

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c) Invest Shield Gold A unit-linked insurance plan with an assurance of Capital Guarantee which offers you the benefit of a limited premium payment term. An ideal plan for protection with wealth creation that offers the flexibility of a limited premium paying term.

 Flexibility to choose a premium payment term of 5, 7 or 10 years for a maturity term of 10, 15 or 20 years respectively.  Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of the annual premium.  At the end of the term (maturity), the higher of the value of units or the guaranteed value* is paid. On death, Sum Assured along with the higher of value of units or the guaranteed value is payable.  Additional credits payable as a percentage of the initial annual premium are paid along with the death or maturity benefit.  Facility to make withdrawals from the 6th policy year onwards till the end of the policy term. Every year withdraw up to 10% of the value of units  Flexibility to make additional investment with the help of the top-up facility.  Flexibility to increase / decrease your annual premium amount  Total transparency with the premium allocations, and other charges declared upfront.  The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all charges) along with the declared bonus interests. The capital guarantee is applicable only on the invested premium and the declared bonus interests. You can also enhance your policy by adding Accident & Disability Benefit Rider and Critical Illness Rider.

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

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

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

 Additional allocation of units on a periodic basis.  Facility to top-up your investment any time you have surplus funds.  Choose from among four funds, based on your investment objective and risk appetite.  Choice to switch between investments options (4 free switches every policy year). Flexibility to decrease your sum assured.  Add-on riders to protect you against any eventuality.  Loans against the policy. You can also enhance your policy by adding Critical Illness Rider, Accident & Disability Benefit Rider.

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e) Lifetime Presenting Life Time unit linked plans that meets your changing needs over a lifetime. These solutions have been developed to meet your savings, protection and investment needs at every stage in life.

Protection  Choose a specified level of protection (available only with LifeTime).  Two levels of Sum Assured to choose from (available only with LifeTime II).  Flexibility to increase or decrease your sum assured.  Add-on riders to protect you against any eventuality. Savings  Flexibility to increase or decrease your contribution.  Facility of Premium Holiday, wherein the policy continues even if there is a temporary break in the payment of annual contribution (available only with Life Time).  Facility of Automatic Cover Continuance, wherein the policy continues even if there is a temporary break in the payment of annual contribution  Facility to top-up your investment any time you have surplus funds.  Additional allocation of units on a periodic basis.  Loans against the policy.

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Investment  Choose from among four funds, based on your investment objective and risk appetite.  Choice to switch between investments options (4 free switches every policy year). You can also enhance your policy by adding Critical Illness Rider, Major Surgical Assistance Rider, Accident & Disability Benefit Rider, Accident Benefit Rider (available only with Life Time) and Waiver of Premium Rider.

f) SECURE PLUS

An insurance plan that gives added protection, savings and multiple options, all in one  The flexibility to choose your premium contribution.  The flexibility to choose amongst three levels of cover (in the form of sum assured) for the same amount of total annual contribution.

 The flexibility of shifting between the three levels of cover, as you require.  The flexibility of receiving your maturity proceeds as a lump sum or in equal annual installments over 3 or 5 years. You can also enhance your policy by adding Variety of Riders.

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g) Cash Plus An insurance plan that gives you added protection, savings, multiple options, plus the power of liquidity.  The flexibility to choose your premium contribution.  The flexibility to choose amongst three levels of cover (in the form of sum assured) for the same amount of total annual contribution.

 The flexibility of shifting between the three levels of cover, as you require.  The flexibility of receiving your maturity proceeds as a lump sum or in equal annual installments over 3 or 5 years.  The flexibility of withdrawing up to 10% of the accumulated value of your policy, after the first 5 policy years. You can also enhance your policy by adding Variety of Riders

h) Save n Protect An ideal plan for those who want to accumulate funds on a regular basis while enjoying insurance protection.  Guaranteed Benefits  Extended Life Cover  Maturity Benefit  Death Benefit You can also enhance your policy by adding Critical Illness Rider , Major Surgical Assistance Rider , Accident & Disability Benefit Rider , Waiver of Premium Rider (WOP).
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CHILD PLANS

As a responsible parent, you will always strive to ensure a hassle-free, successful life for your child. However, life is full of Uncertainties and even the best-laid plans can go wrong. Heres how you can give your child a 100% safe and assured tomorrow, whatever the uncertainties. Smart Kid is especially designed to provide flexibility and safeguard your childs future education and lifestyle, taking all possibilities into account. Choose from amongst a basket of 4 plans:

 Smart Kid regular premium  Smart Kid unit-linked regular premium  Smart Kid unit-linked regular premium II  Smart Kid unit-linked single premium II
All these plans offer you:

 Financial Benefits  Total peace of mind, even if you are not around  Sum Assured is paid immediately  All future premiums are waived  Policy benefits continue  Development Allowance All SmartKid plans can be enhanced with the Accident & Disability Benefit Rider and Income Benefit Rider. You can also an Accident Benefit Rider to a SmartKid Regular Premium policy, and a Waiver of Premium Rider (WOP) to SmartKid unit-linked regular premium policy.

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 INVESTMENT PLANS Life link II Life Link II is a unique plan that combines the security of a life insurance policy with the opportunity of enjoying high returns on your investments, without the market risks compromising on the protection of your family! Death Benefit: The Sum Assured under the product has 2 options, either 500% of the initial premium or 105% of the initial premium. In the event of an unfortunate death, the beneficiary will receive higher of the value of units or the initial death benefit, less any withdrawals. Withdrawal Benefit: One can make partial withdrawals from the accumulated value of the policy after completion of one policy year. Flexibility: Choose from four fund options, based on your investment objective and risk appetite. If at a later stage your financial priorities change, you can switch between the various fund options, absolutely free, 4 times a year.

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 RETIREMENT PLANS Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier generations. For you, this increase will mean a longer retirement life, stretching into a couple of decades. BSLI Retirement Solutions that combine the best of insurance and investment. These solutions are developed to ensure your peace of mind for the years to come. 1) Why plan for retirement? 2) How much should I set aside for retirement? 3) The impact of inflation on your retirement savings 4) Why plan early? 5) About Annuities Why plan for retirement? For too many people, the joy of retirement after years of hard work is eclipsed by the financial uncertainties that it brings. Despite all the planning and saving, you can never sure whether your money will last a lifetime. Retirement planning offers a way to ensure a more enjoyable, stress free tomorrow. A prudent plan will ensure that increasing life expectancy, higher inflation and increasing taxes do not eat away into your hard earned savings. How much must I set aside for retirement? To ensure a comfortable retired life, you would be wise to invest money into additional avenues like pension plans. How much you need to invest can be answered by answering some questions such as:

1. How long do you have to save that amount before retirement? 2. Where can you invest your retirement money? 3. How much risk are you willing to take on your investments?

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 GROUP SOLUTIONS In an era of competitive parity, the only asset that makes a decisive difference between corporate success and failure is the quality of human capital. Employee benefits have proven to be an excellent tool to optimize the retention of talent and improve an organizations bottom-line. The quality of an organizations employee benefits establishes and maintains a company's image as a caring employer. Optimum care of employees is a long-term investment that results in a sustained competitive advantage for an organization in the times to come.

BSLI Group Solutions Advantage

 An integrated basket of employee benefits solutions that offer incomparable flexible benefits.  Sound investment management that focuses on safety, stability and profitability of the portfolio.  Personalized financial planning for your employee that takes care of his/her changing financial needs at every stage of life.  Quality service initiatives and transparency across all operations, promising superlative operational efficiency.
GROUP TERM ASSURANCE

BSLI flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary, and can be extended to all employees between the ages of 18 and 65 years. The benefit under the policy is paid on the event of the members death to the beneficiary nominated by the member. It is a one-year renewable policy where one master policy covers all proposed employees comprising the group, with a minimum group size of 25 persons. New members can join the group and outgoing members can leave the group at any point during the policy term.
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 RURAL PLANS BSLI Rural Products are designed to meet the needs of the rural consumers. These products offer the following features:  Low and Affordable Premiums  Life Cover  Savings Option  Hassle free procedure

 PLANS FOR NRIS Being away from India doesn't mean you have to compromise the safety and security of your loved ones. In fact, your savings from your time overseas can be easily canalized to meet your family's needs - now and in the future. So, whether its your dream to retire in your hometown; to secure funds for your children's education; or to build assets, BSLI has a range of solutions that can be customized to meet your needs.

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CHAPTER III DEPARTMENT STUDY

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ORGANIZATIONAL CHART

BOARD OF DIRECTORS

CEO

Company secretary

Chief Manager (personal)

Chief Manager (claims)

Chief Manager (Oprtns)

Chief Manager (finance)

Chief Manager (marketing

Dy. Manager (Personnel)

Area manager

Dy. Manager (Finance)

Manager (Audit)

Area manager (Oprtns)

Regional Manager (Marketing)

Manager (Audit)

Customer Support Manager

Manager (Branch operations)

Manager (Processin g Hub)

Sales Manager

Admin. Officer (Marketing)

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DIFFERENT DEPARTMENTS IN THE BSLI Ltd. There are 5 departments in the organization which are classified on the basis of the functions what they are performing, which are listed below,

1. Personnel and Administration Department

2. Claims Department

3. Finance Department

4. Operations Department

5. Marketing Department

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1) PERSONNEL & ADMINSTRATION DEPARTMENT The Personnel and Administration Department is an important department of the organization being the one which is in close contact with both the management as well as the employees. The personnel department is headed by the Personnel Manger and is assisted by the Deputy Manger.

STRUCTURE OF THE DEPARTMENT

CHIEF MANAGER (Personnel)

DEPUTY MANAGER

MANAGER (Administration)

OFFICER (Administration)

Assistants

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Functions The Personnel Department is responsible to keep filled the various positions of the organizational structure. a) Identifying the job requirements: To fill a position with the right person we have to understand the scope of every job and ascertain the requirements which would meet both the individual and organizational requirements.
b) Recruiting;

Recruiting is the process of attracting candidates to filled positions in the organizational structure. c) Selecting, placing and promoting: Selection is the process of choosing the best candidates from among the recruits who would fit into the job as per requirements.
d) Performance Appraisal

Performance appraisal is ascertaining how a person the performing in his present managerial position. It helps in determining who is eligible to be promoted to a higher position.
e) Training

Training includes those activities done to facilitate the learning process the employees and is mostly a short term activity which helps to do their jobs better.

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Compensation

The compensation structure is categorized into two components,

Fixed Pay

Variable Pay

Total cost to company

Fixed Pay  Basic Pay  Employees have the flexibility of fixing the monthly basic varying between 35-40% of the total cost of the company.  Tax implication: Fully Taxable as per tax slabs as applicable.  Provident Fund  Employee contribution is 12% of the monthly basic with a matching contribution made by the company.  Tax implication: Nil
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 Gratuity  Applicable at all the employees with a minimum of one year of continous service in the company. Employee contribution is to 4.81% of the monthly basic  Tax implication: Nil

Flexible pay

 HRA  Employee has the flexible to fix a percentage of basic salary as HRA.  Tax implication: Least of the following and is exempt from income tax. o 50% (for metro cities)/ 40% (for non metro cities) of basic or o Actual HRA or o Rent paid by the employee subject to a maximum of 10% of basic  Conveyance allowance  Conveyance allowance is paid to take care of employees travel from residence to the place of posting the back. Not applicable for employees covered under car hiring scheme.  Tax implication- Not taxable up to 9600/annum

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 Special Allowance:  Any unaccounted amount from the total cost to company not claimed under any other component can be claimed under special allowance. There is no restriction on the amount to be taken under this bead.  Tax implication: Fully taxable.  Leave Travel Assistance (LTA):  Includes travel expenditure on self, spouse, children & dependent parents for expenses incurred by them for leisure travel/excursions. Guidelines  LTA can be claimed only after completion of one year of continuous service/completion of probation period, whichever is earlier.  LTA shall be sanctioned only when an employee proceeds on leave for a minimum period of 5 working days at a stretch.  An employee can claim LTA advance up to 75% of the entitlement (15 days prior to proceeding on leave). The advance needs to be settled within 30 days of journey. Company Leased Accommodation (CLA) Any employee may opt for a company leased accommodation. The employee may lease a house for a period not less than 11 months at each instance. The company shall pay the rent through monthly cheques in the name of leaser.
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Fringe Benefits  Car hiring Charges

The car to be hired should be in the name of spouse or any of the dependent parents only. A copy of car registration certificate as approve for ownership to be submitted for claiming the amount.

 Fuel and Car Maintenance expense

All employees eligible for car hiring charges will also be entitled petrol and car maintenance expense reimbursement up to a maximum limit of Rs. 220000 per annum. To claim the under this bills along with the claim form to be submitted.

 Driver Salary

All employees eligible for car hiring will also be eligible for driver reimbursement subject to a maximum amount of Rs. 80000/ annum. A copy of drivers driving license along with monthly payment receipt to be submitted.

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 Medical Reimbursement

Uncured on self, spouse, dependent children and dependent parents. The amount is subject to a maximum of Rs.18000/ annum.

 Mediclaim Insurance

Includes hospitalization expenses incurred in the hospital at the event of illness or disease or injury sustained by the employee of any of the family member.

 Professional Body Membership

An amount can be reimbursed on producing proof of membership to any of the professional bodies related to the areas.

 Superannuation

Applicable to Band 1 and above employees contribution is 10 to 15% of the monthly basic.

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VARIABLE PAY

Objective:To have compensation and reward structure that is directly aligned to individual performance with organization goal for business strategies.

Features:-

 All employees who are on the roll of the company as on 31st March.  An employee rated as partial contributor, does not qualify.  Periodicity of payout: Annual

Basic of Annual Performance Bonus

 Individual performance  Unit performance  Business performance

Incentives Incentives are paid to the employees based on their volume of sales.

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2) CLAIMS DEPARTMENT STRUCTURE OF THE DEPARTMENT

CHIEF MANAGER

AREA MANAGER

MANAGER (Customer Support)

MANAGER (Customer Support)

MANAGER (Customer Support)

ASSOCIATES

ASSOCIATES

ASSOCIATES

The Claims department is headed by the claims manager; there are the Area Manager and support managers and their associates to assist him.

The claims department is responsible for the claim settlements arising from the customers. In case of a life insurance claim the department gets information directly from the customer or from the 24x7 call centers. The department
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authenticates the policy details and issues a claim number, and then assigns the surveyor for valuation. After proper enquiry, fund is collected and delivered to the customer.

In case of reimbursement process, the customer will have to submit documents and they will make the payment within 3 days of completion of documentation.

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3) FINANCE DEPARTMENT STRUCTURE OF THE DEPARTMENT

CHIEF MANAGER

Dy. MANAGER

MANAGER (Audit)

ASSISTANTS ACCOUNTS OFFICER ACCOUNTS OFFICER

ASSISTANTS

ASSISTANTS

The finance department is headed by the Chief Finance Manager and there is Deputy Manager and Audit Manager to assist him.

Functions  Preparation of reports which means the summarized form of management on the monthly performance.  Finalization of accounts: like the preparation of profit and loss accounts, schedules and notes on accounts.
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 Preparation of budges, which means managing the funds of the department.  Treasury management which refers to the management of the available funds in a suitable and convenient manner.  Calculation and preparation of income tax & service tax.  Operations control means controlling the daily operations and transactions in the department and controls them.  Calculation of depreciation.  Preparation and disbursement of salary.  Internal and external audit.

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4) OPERATIONS DEPARTMENT STRUCTURE OF THE DEPARTMENT

CHIEF MANAGER

AREA MANAGER

MANAGER (Branch Operations)

MANAGER (Processing Hub)

ASSOCIATES

ASSOCIATES

ASSOCIATES

ASSOCIATES

The operations department is headed by the Operations Manager and is assisted by the Area Manager. There are two, the Branch Operations Manager and his associates & processing hub Manager and his associates to assist him.

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The main functions of the Operations Department are divided into three. a) Primary Functions The primary functions involve the acceptance of documents submitted from the marketing department.

b) Secondary Functions The secondary functions involve the detailed analysis and verification of the documents.

c) Tertiary Functions The tertiary functions involve the punching and issuance of policy documents to the client after verifying.

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5) MARKETING DEPARTMENT STRUCTURE OF THE DEPARTMENT

CHIEF MANAGER

REGIONAL MANAGER

Sales Manager

Admin. Officer (Marketing)

Unit Sales Manager

Assistant

SO/ Agent

Assistant

Marketing is the term used to refer to the orientation of an organization which has established a separate department to look after its marketing activities. The Marketing Department is headed by the chief Marketing Manager and is assisted by the regional Manager.

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Functions: a) Sales Sales are the crucial function of the marketing department. The various vertical agencies functioning in BSLI, Punalur are: Branch Banking Group, Rural and Agricultural Business Group, CMG.

b) Planning Planning is the act of formulating a program for a definite course of action. In BSLI the Marketing Department is responsible for the planning and Co-ordination of the Marketing activities.

c) Marketing Research Marketing Research analyses a given marketing opportunity or problem, defines the research and data collection methods required to deal with the problem.

d) Customer Relations Customer relations involves the conscious aim to develop and manage long term and/ or trusting relationship with customers, suppliers, distributors or other parties in the marketing department.

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CHAPTER IV SWOT ANALYSIS

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 STRENGTH  Multi-channel distribution and one of the largest distribution networks in India  Implementing Six-Sigma process  Customer centric products and services  Superior investment and risk management framework  1 Million Policies sold within 3 and half years.  Company has maximum number of MDRT as well as good number of HNI advisors.  Training process of the company is very strong.  Different plan for different peoples  According to the change in surrounding environment like changes in customer requirement

 WEAKNESS  COMPANY does not penetrate on the rural market at a time.  There is no plan for the low income group.  Fees for the advisor is high than the other company.

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 OPPORTUNITY

 Insurance market is very big, where company can expand its horizon in insurance industry.  Though good investment and insurance it is easy to top Indian customers.  The huge insurance market (77%) is left so company has opportunity to expand our products.  To associate with the more number of HNI.

 THREATS

 OLD HABITS DIE HARD: Its still difficult task to win the confidence of public towards private company.  The company is facing major threats from LIC -which is an only government company.  Plans for all income groups are not available which can create adverse effect later on the market share of the company.

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CHAPTER V FINDINGS & SUGGESTIONS

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FINDINGS

 Birla Sun Life Asset Management Company has one of the largest team of research analysts in the industry, dedicated to tracking down the best companies to invest in.

 There is a good relation exist between the employees and management.  BSLI provides good welfare facilities.  The age groups of selected advisors are quiet encouraging. 53 % are over age of 55 years which is quite good for company because they much more trusted by the prospect than the other age group.

 Most of the selected advisors have a good qualification. Most of them are graduate and post graduate.

 All most 50% of the new advisors give full time to their profession. This shows how new advisors are dedicated towards their new profession.  Employees wish to acquire skills through continuous training.  Selection is advisors in base on commission basis so there is always a big possibility of extra income. Hard working advisors can earn more than expectation, because there is no limit of earning. If a advisors sell more policy he can get more commission so there know limitation on earnings.

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SUGGESTIONS

 Even though most of the policy holders are satisfied with policies, plans they have but some new attractive insurance plans should be introduce to bind them not to switch over to other companies insurance plans.

 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.

 Leveraging technology to service customers quickly, efficiently and conveniently

 Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders.

 Company should target each and every class of the society  Company should provide full information to the customers before targeting so they can take interest

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CHAPTER VI CONCLUSION

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CONCLUSION

The market potential for private insurance companies is found to be greater in the long run as most of the Indians are of the opinion that, private insurance companies would be able to perform well in the future. The private and foreign insurance companies have to take immediate steps in appointing more number of agents and/or advisors in addition to the employees as it has been found out that agents are the best channel to reach the general public regarding selling of insurance products. The private and foreign insurance companies have to concentrate on the factors like 'Prevention of Loss', 'Assured Returns' and 'Long term Investment'. They can also focus on an insurance amount of Rs. 1 2 lakhs with 'money back policies'. Hence, the market has potential. The private and foreign insurance companies that are taking immediate steps can tap it easily & rapidly.

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BIBILOGRAPHY

Research Methodology

C R Kothari

Website

www.birlasunlife.com www.adityabirla.com www.sunlife.com www.irda.gov.in www.google.co.in

Records & Files

BSLI Ltd.

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