1

CHAPTER -1





















2

1.1 RESEARCH OBJECTIVE
The main objective of this study is to found out
1. the view of different people about the unit-linked life insurance.
2. And find out what they take insurance advisors advise for their investment or not.
If not indicate the people for their life insurance and tells them why life insurance is
necessary for every persons. There are some reason which indicates why life
insurance is necessary for every person given below-

MARKETING OBJECTIVE:
The main marketing objective of this project report for the company is find out marketing
position of the life insurance and makes the present and future market strategy of the
company.

1. Identifying the sources of money or funds a person has and what happens to that
money (where is goes) than
2. Determining the person short and long term priorities
3. Analyzing this information or ones can advice changes to the person financial habits
or enable him to achieve his goals.

The main objectives of this study are:
Working of Insurance Plans
SWOT analysis of the product sold
Comparative study with the competitors








3

1.2 RESEARCH METHODOLOGY

Research comprise defining and redefining problems, formulating hypothesis or suggested
solutions; collecting, organizing and evaluating data; making deductions and reaching
conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating Hypothesis.

In short, the search for Knowledge through Objective and Systematic method of finding
solutions to a problem is Research.
a) The observation method.
b) The experimental method.
c) The survey method inclusive of panel method.

In observation method data are collected on the direct observation. No talks place by
observing the person the analysis makes the inventory as to product used by him at his hoe or
kept as retailers stocks.

In experimental method it is based on the concept that small-scale experiment is useful to
indicate the expectation of large-scale experiment.
The survey method information is gathered directly from individuals in three ways;
1) Telephone
2) Mail
3) Personal interview
This survey method is also suffered to as the questionnaire technique. There is also organized
by-
1) In factual survey
2) Interpretative survey
3) Opinion survey

In my project point of view I have taken mainly the method of personal interview by
questionnaire technique in the personal interview by questionnaire.

Technique I usually gathered information by face to face interviewing.

4

In this survey method I saw that the respondent was shown the exhibit and advertisement to
give his personal opinion and attitude.

In this method the direct interaction on occurred with the retailers and I could collect the
reliable information from them.
RESEARCH DESIGN:

RESEARCH PROCESS




















DEFINING RESEARCH PROBLEM
INTENSIVE LITREATURE SURVEY
COLLECTION OF DATA

ANALYSIS OF DATA

RECOMMENDATION AND
REPORT WRITING
RESEARCH DESIGN

5

1.2.1DATA SOURCES
There are two types of data.
PRIMARY DATA The data that is collected first hand by someone specifically for the
purpose of facilitating the study is known as primary data. So in this research the data is
collected from respondents through questionnaire.

SECONDARY DATA.
For the company information I had used secondary data like brochures, web site of the
company etc.
The Method used by me is Survey Method as the research done is Descriptive Research.

1.2.2 Method of data collection: - Descriptive research
Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main
characteristic of this method is that the researcher has no control over the variables; he can
only report what has happened or what is happening.


RESEARCH INSTRUMENTS
Selected instrument for Data Collection for Survey is Questionnaire.

6

1.2.3 QUESTIONNAIRE DESIGN/FORMULATION

Questionnaire: - A questionnaire consists of a set of questions presented to respondent for
their answers. It can be Closed Ended or Open Ended

Open Ended: - Allows respondents to answer in their own words & are difficult to Interpret
and Tabulate.

Close Ended: - Pre-specify all the possible answers & are easy to Interpret and Tabulate.

TYPES OF QUESTION INCLUDED:
DICHOTOMOUS QUESTIONS
Which has only two answers Yes or No.

MULTIPLE CHOICE QUESTION
Where respondent is offered more than two choices.

IMPORTANCE SCALE
A scale that rates the importance of some attribute.

RATING SCALE
A scale that rates some attribute from highly satisfied to highly unsatisfied and very
inefficient to very efficient




7

SAMPLE DESIGN:
Sampling plan of this project report basically related to the number of points which are given
below-
1. The universe studied prospectors in the areas of N.C.R. mainly Delhi, Ghaziabad, Noida
& Gurgoan.
2. The sampling unit is a single prospector outlet, which may be any types.
3. Elements: potential prospector.
4. The geographical limit is the area of N.C.R.
5. Keeply the number of prospector in mind the sample size arrived at was 200.
The sampling method followed was judgmental sampling.

SAMPLING UNIT: -
Who is to be surveyed? The marketing researcher must define the target population that will be
sampled.

The sample Unit taken by me;General public of different age group, different gender and
different proffesion

EXTENT:-
Where the survey should be carried out?
I have covered entire residential area of Delhi city for the survey

TIME FRAME:-
When the survey should be conducted?
I conducted my survey for 8weeks from 10th may to 10th July

SAMPLING FRAME:-
The source from which the sample is drawn

Sampling Technique: -
How should the respondent be chosen?

8

In the Project sampling is done on basis of Probability sampling. Among the probability
sampling design the sampling design chosen is stratified random sampling.
Because in this survey I had stratified the sample in different age group, different gender and
different proffesion

Sample Size/ Population Size: - How many people should be surveyed?
My sample size is 75

9

1.2.4 LIMITATIONS OF RESEARCH

The geographical area was very much limited to residential area & so the results are not
particularly reflection of the current behavior.

BIASES AND NON-COOPERATION OF THE RESPONDENTS.
Due to limited time period and constrained working hours for most of the respondents, the
answers at times were vague enough to be ignored.
Most of the people in India take their policies in the period preceding March (for tax saving
purposes) & so the response to initial contacts were not all encouraging and that has been
the primary reason in the inability to quantify the results large enough so as to deduce any
relevant outcomes.


10





















CHAPTER -2


Company Profile















11

ABOUT BIRLA SUN LIFE INSURANCE COMPANY LIMITED

Birla Sun Life Insurance pioneered the unique Unit Linked Life Insurance Solutions in
India.Within 4 years of its launch, BSLI has cemented its position as a leading player in the
Private Life Insurance Industry.There has been focus on Investment Linked Insurance
Products, supported with protection products to maintain leadership in product
innovation.Multi Distribution Channels- Direct Sales Force, Alternate Channels and Group
offering convenient channels of purchase to customers.Web-enabled IT systems for superior
customer services.First to have issued policies over the Internet.Corporate governance and a
high degree of transparency in all business practices and procedures.First to have an
operational Business Continuity Plan.Strong fundamentals based on the Aditya Birla group's
local insight and Sun Life Financials's global expertise.


Vision:
To be a world class provider of financial security to individuals and corporates 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

Values:
Intergrity
Commitment
Passion

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Seamlessness
Speed

RANGE OF PRODUCT SERVICES

OUR VALUES:
INTEGRITY
TRANSPERENCY
CUSTOMER FOCUS
EXCELLENCE
INNOVATION
MERITOCRACY
RESPECT FOR THE INDIVIDUAL

OUR FEATURES:
Our unit-linked flexi products are based on universal life platform, catering to the customers
twin needs of insurance and investment. Our customers have appreciated these products,
which have the beneficial features of life insurance, mutual funds and banks. Some of these
features are described below:

1. PROSPECTS FOR GROWTH WITH UNDERLYING GURANTEES:
According to their risk appetite, the customers can choose out of three investment options,
viz, protector (Representing a low risk portfolio), Builder (Medium risk portfolio) or
Enhancer (High risk portfolio) with guaranteed returns fund, at present ranging from 3%-6%.
The flexibility of changing the investment option initially availed by them is also available.

2. GUARANTEES PROVIDE SAFETY NET: The policyholders enjoy the upside
returns provided by the portfolios in all the investment options. As on 31
st
December 2002,
the annualized returns since inception under protector, builder and enhancer options were
9.75%, 11.12% and 14.74% respectively, which is above the minimum level guaranteed.


13

3. CONVENIENCE IN PAYMENT OF PREMIUMS: The customer has the
option of paying any amount of premium, any number of times (within a policy year)
irrespective of the mode. Traditional products available in the market do not offer such a
facility.

4. BUILT-IN GUARD AGAINST UNITENDED LAPSATION: These
products provide continuity of risk coverage for a long time even if the premiums remain
unpaid. The continuity of risk is ensured with the help of monthly recovery of cost of
insurance and automatic premium advance facility. A policy can lapse if and only if the policy
fund pertaining to the individual policy becomes negative.


5. RISK COVER DOES NOT DECRESE DURING THE TERM OF THE
POLICY: Unlike traditional life insurance policies, where the sum at risk (Sum assured
paid up value) actually goes on decreasing, in our flexi policies, death benefit is sacrosanct
and remains uniform throughout the tenure of the policy. In case of death, the face amount as
well as the policy fund representing the saving portion in the premium is payable.

1. ACCELERATED PAYMENT OF PREMIUM POSSIBLE: Depending on
ones financial situation a shorter premium-paying period can be selected, with the
advantage of greater accumulation resulting into higher death/surrender/withdrawals/
maturity benefits.

2. LIQUIDITY ON TAP: Traditionally, insurance products have been know to be
illiquid. Policy loans are at a cost and surrenders defeat the very purpose of insurance. In
such an environment, the facility of withdrawals without affecting the risk cover is one of
our unique features.

3. NO PENALTY FOR SURRENDER: Unlike in traditional type of life insurance
policies where the policy holders have to suffer a financial loss on surrender of their
policies, our products do not provide any surrender charge after the first four years.

14

4. CUSTOMERS CAN SEE THEIR MONEY PERFORM: Our policyholders
are provided with an access code to know the policy values online. Besides, the
investment performance of the various options is published every quarter and the
policyholders receive a yearly statement reflecting the status of the policy fund.
5. OTHER BENEFITS:
a. Lower premium for female customers
b. Age last birthday gives the customers advantage of lower age
c. A policy can be customized to the policyholders requirements. For instance our Flexi
life line with the facility of limited premium payments and withdrawals thereafter,
becomes a veritable pension plan with attendant tax benefits.
d. Detailed illustration at the point of sale

ORGANISATION STRUCTURE: Two guides Biral sun life insurance business
operations if its core values, namely integrity and transparency. BSLI complies with a all
regulations governing the life insurance business. A high degree of transparency is followed
in al the business practiced and procedures and all employees are governed by an internal
code of conduct.

BSLI abides by the corporate governance framework in accordance with the Kumar
Managalam Birla committee as applicable to the life insurance business, as well as the
provisions of the insurance act, 1938, the companies act, 1956 and the IRDA regulations.

Apart from the above committees overseeing the business operation, the CEO and CGO
certify the audited accounts of the company and company secretary submits a compliance
certificate.

THE BSLI MANAGEMENT TEAM

Mr. Vikram Mehmi (CEO)
Mr. Mayank Bathwal (CFO)

15

Mr. Mario Braganza (COF)
Mr. E.N. Goveia (Head-Direct Sales Force)
Mr. Amit Punchhi (Senior Vice President, Distribution)
Mr. Bhavesh Sanghvi (Head Group & Marketing Sales)
Mr. Snehal Shah (Senior Vice President, Special Projects)
Ms. Anjan Grewal (Senior Vice President, Marketing & Communication)
Mr. Rajesh Bhojani (Senior Vice President, DSF Expansion)
Mr. K.H. Venkatachalam (Vice President, Human Resources)
Mr. Fabien Jeudy (Vice President, Chief & Appointed Actuary)
Mr. Lalit Vermani (Vice President Compliance)
Mr. Vikram Kotak (Chief Investment Officer)
Mr. Bhalachandra Nayak (Vice President Strategy)
Mr. Bimal Khandelwal (Vice President - Finance & Planning)

16

Location of Birla Sun Life Insurance Co. Offices in India

17

BRIEF PROFILE OF SEVICES OF ORGANISATION:

Pioneered by Birla sun life insurance, Unit- linked solutions bring together the best of life
insurance and investment, together. A unique combination of security from life insurance and
returns from investment. Introduced in line with the latest global trends, the unit- linked plans
put you in total control of your money. They are simple transparent and flexible. Whats
more, they offer 3% minimum guaranteed overall returns on the premium.

Birla sun life insurance provides individual as well as group life insurance solutions aimed at
the corporate sector.

INDIVIDUAL LIFE PLANS: Birla sun life insurance offers number of individual life
plans, which can be given below-

FLEXI SECURELIFE RETIREMENT PLAN: This is a unit-linked retirement
plan to give you efficient returns in the long term so as to build a sufficiently large corpus of
savings on retirement. The planes built in tow phases: the accumulation phases and annuity
phase. During the accumulation phase the plan gives you a choice of three investment options
to invest your money with an option to switch between these funds to match your risk
appetite. Whats more it offers a guaranteed minimum return of 3% on your premium
(deposit) amount net of all charges and deductions in this phase. In the annuity phase the plan
gives 2 options to choose from.

FLEXI LIFE LINE PLAN: This plan offers a life insurance cover till the age of 100
years thus providing you with a lifetime of security. It is an investment for your future in
which you accumulate large savings through the benefits of compounding. The plan gives you
the flexibility of making tax-free withdrawals and can be customized as tax efficient pension
during your working years while the plan continues for a lifetime.

FLEXI SAVE PLUS ENDOWMENT PLAN: It is a flexible life insurance plan,
which offers the dual benefit of a life insurance cover as well as large tax-free savings in the

18

long term. The plan is taken for a specified period and the benefits are payable in the events of
death during the tenure of the plan or at maturity. The unit-linked nature of the plan coupled
with the benefits of compounding can lead to very efficient returns in the long term.

FLEXI CASH FLOW MONEY BACK PLAN: It is a flexible life insurance plan,
which offers a life insurance cover and gives lump sum payment at periodic intervals. These
periodic payments intervals. These periodic payments help you meet your various financial
obligations at crucial junctures such as education or marriage of your child. The unit-linked
plan also offers you the option of not withdrawing the lump sum amounts and continuing it in
the plan to take advantage of the benefits of compounding.

BIRLA SUN LIFE TERM PLAN: The plan offers large life insurance cover for very
low costs for a specified term. It is a low premium, pure risk coverage plan, which takes care
of ones financial commitments toward his/her depending should anything unfortunate happen
to line policyholder.

BIRLA SUN LIFE PREMIUM BACK TERM PLAN: The plan offers you a life
insurance cover for a specified term. Unlike other term plans this plan refunds the entire
amount of premium that you pay over a period of time. There are two options of maturity
benefits to choose from and what is m ore it is a low cost life insurance plan.

GROUP PLANS: Birla sun life insurance Company offers number of group plans, which
can be, described below-

GROUP GRATUITY SOLUTIONS: It works for your future group gratuity
addresses the need of prudent financial management for a progressive corporate house. The
unique benefit being it provides market-linked returns that present an opportunity for capital
appreciation in the long term. Besides when the fund yields better returns, it decreases the
contribution to the fund in the years.



19

GROUP SUPERANNUATION PLAN: Retire in comfort- Birla sun life insurance
offers group superannuating plan as a retirement solution for employees. The plan has
benefits that empower both the employer and employee. The contribution is invested in unit-
linked funds yielding market-linked returns to meet your future needs efficiently. Additionally
original / principal contribution is guaranteed against market fluctuation.

GROUP PROTECTION PLAN: Birla sun life insurance provides group protection
plan for a homogenous group. Under this plan, life insurance cover is provided at an
affordable cost. Renewed every year, it helps fulfill the insurance needs of employees as well
as provide financial security to their families. In the event of death of the member, the
beneficiary (family) of the member gets the benefit. The plan has 6 additional riders and two
options.

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PLANS AT A GLANCE

ELIGIBILITY 30days 65
years
30days 65 years 30days 65 years
MINIUM FACE
AMOUNT
Rs.50, 000 for
minors and
Rs75, 000 for
adults
Rs.50, 000 for
minors and Rs75,
000 for adults
Rs.50, 000 for minors and
Rs75, 000 for adults
DURATION OF
THE PLAN
As per policy
term-5,
10,15,20,25,or
30 years or as
per maturity age-
15, 20,25,30,35
years for minors
and 60,65,70,80
years for adults
As per policy term-5,
10,15,20,25,or 30
years or as per
maturity age-15,
20,25,30,35 years for
minors and
60,65,70,80 years for
adults
As per policy term-5,
10,15,20,25,or 30 years or as
per maturity age-15,
20,25,30,35 years for minors
and 60,65,70,80 years for
adults
PREMIUM
PAYING PERIOD
Single pay
5,10,15,20 years
or over the
duration of the
plan
Single pay
5,10,15,20 years or
over the duration of
the plan
Single pay 5,10,15,20 years or
over the duration of the plan
MATURITY
BENEFITS
Policy fund Policy fund Policy fund
AMOUNT DUE
TO NOMINEE IN
EVENT OF
DEATH OF THE
LIFE INSURED
Face
amount+policy
fund
Face amount+policy
fund
Face amount+policy fund
FREELOOK
PERIOD
15 days from the
date on which
you receive the
policy document
15 days from the
date on which you
receive the policy
document
15 days from the date on which
you receive the policy
document

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TAX
BENEFITS**
Under sec 88
and sec 10(10D)
of the income
tax act 1961
Under sec 88 and sec
10(10D) of the
income tax act 1961
Under sec 88 and sec 10(10D)
of the income tax act 1961
RIDERS Accidental
death and
dismemberment
benefit rider
Term rider
Critical
illness rider
Critical
illness plus rider
Waiver of
premium rider

Accidental death
and dismemberment
benefit
Rider
Term rider
Critical illness
rider
Critical illness
plus
Rider
Waiver of
premium rider

Accidental death and
dismemberment benefit rider
Term rider
Critical illness rider
Critical illness plus
Rider
Waiver of premium
Rider

UNIQUE
FEATURES
Minimum guaranteed returns of 3% p.a. on your premium net of all
policy fees of all policy fees and charges. The entire upside in the
performance of the fund is passed on to you.
Three investment fund options: protector, builder and enhancer
with option to switch between funds any time after the first policy year.
Options to make tax-free withdrawals you have additional savings.
Vary the face amount of policy depending on your changing needs
for life insurance during your lifetime.
Surrender your policy without penalty anytime after 4 policy years.

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AREAS OF EXCELLENCE: Drawing from the strength of the joint venture partners.
The aditya Birla group and sun life financial inc. the team of Birla sun life insurance has
crossed several milestones of excellence.
Leadership in unit-linked plans- 95% of sales comes through unit-linked plans. The
company is one of the largest sellers of unit-linked plans in one of the fastest growing life
insurance markets in the world.
The company is a p pioneer in introducing unique product features like a free look
period and best sales practices such as the use of sales illustrations. The regulator has
now introduced the free look period as an industry norm. The mandatory use of a sales
illustration within BSLI set up a standard of transparency in the industry.
A high persistency ratio of 95.46% by premium.
BSLI has consistently recorded the highest average sum assured of Rs.3, 26,000 and
average premium of Rs.19,500 per policy in the industry with a unit-linked product range.
A very efficient utilization of capital.
Low claims ratio of 0.06% of total policies.
The first advisor to qualify to the top of the table (TOT) amongst all Private Life
Insurance companies.

GROWTH OF BIRALA SUN LIFE IN UNIT-LINKED LIFE
INSURANCE:

Another successful financial year came to an end. The company reported an annualized new
business income of Rs.478 crore during the year 2003-04 an increase of 222% over the
premium income lat year. The company of the year-end had an agency force of around 10,250
agents, and 89 ban assurance & corporate partners. All three sales channels came out with
flying colors. During the year 2003-04 the company has launched two new groups and one
individual fund.

During the year 2003-04, the BSE sensex has gone up by 81% but the first quarter of year
2004 was not very exciting for the market except for a huge supply of PSU IPOs. In March
2004, the markets have been choppy and combined with the upcoming elections. This has
caused some amount of investor uncertainty. After a continuous rise between may 2003 and

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January 2004, the quarter saw a correction in the market. The BSE sensex went up to an all
time high in January 2004 and the quarter closed at 5590.60 down almost 4% from December
2003 level. There was a large supply of IPOs by PSUs, which met with a good response. The
fundamentals remained good and foreign institutional investors (FIIS) continued buying even
though the markets declined. The GDP growth numbers has also been encouraging at 10.4%
in October December 2003 quarter.
The interest rates remained range bound in the quarter with some amount of volatility. The
10- year benchmark G-sec closed at 5.15% at the end of the quarter.
The rupee strengthened further to close the quarter at 43.60/ US $ against Rs.45.61 at the end
of December quarter and Rs.47.50 a year ago. Forex reserves have crossed $ 110 bn in March
2004 on the back of strong growth in FDI and FII inflows.

We will continue to invest in diversified and quality portfolio with a long-term view.
Returns on unit-linked individual life funds
(Based on unit price growth, net of charges) as on 31
st
march 2004
PARTICULARS RETURN ON
INVESTMENT
(SINCE INCEPTION) %
ANNUALISED
RETURN
(SINCE INCEPTION)%
LAST I YEAR
(%)
PROCTER 39.20 12.95 20.62
BUILDER 51.11 16.88 28.33
ENHANCER 70.98 23.45 38.56

Returns on unit linked pension funds:

PARTICULARS RETURN ON
INVESTMENT
(SINCE INCEPTION)%
ANNUALISED
RETURN
(SINCE
INCEPTION)%
LAST I YEAR
(%)
NOURISH 13.94 13.21 13.30
GROWTH 15.54 14.97 14.90
ENCRICH 18.78 17.80 18.10

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PROBLEMS IN ORGANISATION:
[Problems in the organization, which are assigned by officer, are not so big problem. It is clear
that BIRLA SUN LIFE INSURANCE COMPANY is a unit- linked insurance, which are
basically involved in the life insurance solutions. There are number of problem which are as
follows-
The main problem of the organization is that the it is not government organization like a
life insurance solutions.
The second main problem is that lack of believes on the organization by the people.
The third problem assigned by the organization that there are the few branches of the
BRILA SUN LIFE INSURANCE SOLUTION.
Another problem is that the lack of good quality, good skill insurance advisors.


DISTRIBUTION NETWORK:

BIRLA SUN LIFE INSURANCE COMPANY LTD, distribution strategy is aimed at creating
a national presence through a scaleable model, which would achieve convenience,
accessibility and quality service for the customers.

DIRECT SALES FORCE: Through this channel, the company sets up brick and mortar
branches on a standardizes template, across the country selling life insurance though trained
career agents called insurance advisor. The team of agency managers and advisors are
geared for productivity enhancement national presence in 44branches and 9development
centers.

ALTERNATE CHANNELS: The experience in various countries for selling life
insurance through banks, corporate agents, brokers, call center, Internet and these distribution
alternatives will be pursed by the organization from the inception stage. While in India there
was no precedent for selling life insurance though these alternate modes, a philosophy of
piloting and stabilizing the model was adopted.


25

The successful business models for banassurance, corporate agency, brokerage, affinity group
and direct marketing are being consolidated. use of the call center and the internet will
continue to be part of the direct marketing initiatives .with a winning multi-channel
distribution system in place ,BSLI alternate channels are frontrunners in bancassurance
business, in partnership with Citibank ,Deutsche Bank, Bank of Rajasthan, Bank Muscat,
Catholic Syrian Bank, Development credit bank and IDBI Bank.

OUR INSURANCE: The selling of insurance to corporate and affinity groups is
developed though dedicated relationship managers. The business focus is on the Aditya birla
group companies and the top corporate in India.

Through this channel, the company has established relationships with more than 100 blue
chips corporate across the country by providing group protection and group retirement
solution. The company has achieved leadership position in-group business in private life
insurance position in providing fund management services for the group retirement plans.
DISTRIBUTION IN TUNE WITH TECHNOLOGY: Technology plays the crucial role,
when distribution spans across more than 50 locations .the IT strategy revolves around
selecting and implementing critical Business applications to support contemporary products
like universal life and aligning process to provide world-class customer services. The systems
are web enabled and equipped to provide consistent information across all touch points
(branches, callcenters website etc.). A high quality wide area network (WAN) was set up to
interconnect all branches and the headquarters at mumbai.

TRAINING TO SUPPORT DISTRIBUTION: In keeping with support throughout
the country. Birla sun life insurances mission of providing life insurance solutions though
well trained professionals, our tanning team has geared up to meet the challenge. We have a
team of qualified professionals to provide the crucial support throughout the country

PRICING POLICY OF THE COMPANY:
KEEP TRACK OF YOUR POLICY FUND: Birla sun life insurance sends you an
annual policy statement on every policy anniversary to keep you completely informed on the
performance of our various funds based on the unit price will be available on our website.

26

ELECTRONIC CLEARING SERVICE (ECS): The ECS is a convenient and
hassle- free method of paying premiums through an electronic debit to your bank account.

INVESTMENT FUND PORTFOLIO:

FEES AND CHARGES: The policy loading fee* is an up-front charge and varies as per
the premium payment mode and the policy year as given under:








As a percentage of premium. The policy-loading fee for top up wills 2.0 percent.



UPPER LIMIT OF %ASSETS
IN:
PROTECTOR BUILDER ENHANCER
Government and government
approved securities
85% 70% 55%
Rated corporate bonds (AA and
above)
30% 30% 30%
Money market and other liquid
assets
20% 20% 20%
Infrastructure sectors as defined
by the IRDA
25% 25% 25%
Listed equities 10% 20% 35%
POLICY YEAR SINGLE 5-PAY 10-PAY 15-PAY OR
GREATER
1 3% 29.9% 54.6% 65%
2 N/A 5.0% 7.5% 7.5%
3 N/A 5.0% 7.5% 7.5%
4 N/A 5.0% 5.0% 5.0%

27

CHARGES: Charges towards the cost of insurance will be deducted by cancellation of
units at the prevailing unit price on a monthly basis.
The annual insurance charges per thousand-face amount for sample ages for healthy lives are
as follows:





An investment management free not exceeding 1.5% p.a. of the fund will be charged by
adjustment of daily unit prices. Currently this fee is 1% p.a.
The following administration fees will be deducted by canceling units on a monthly basis.
(a) Rs. 22 per month
(b) An annual charge of Rs. 2.88 per thousand face amount will be deducted in the first
10 years of the policy expect in the second year where it will be Rs. 15.24 per thousand face
amount. From the 11
th
year onwards this annual charge will increase subject to a maximum of
3.75%per year.
A monthly rider deduction will apply by cancellation of units on a monthly basis based on the
equivalent monthly rider premium payable over the entire coverage benefit period. If rider
deductions are not guaranteed, then the minimum policy values of your policy might be
affected due to any change in the rates of the rider coverage.

FUND SWITICHING CHARGES:
In a year, one switch between investment fund options is free.
For every additional switch, a charge of Rs.100 will be levied.

SURRENDER CHARGES: The surrender charges is levied in the first four years and
varies based on the year in which the policy is surrender. During the first 24 months of the
policy, the charge will be an amount equal to the annulled premium payable for this policy
.for the purpose of surrender charge only, annualilsed premium is defined as the amount that
is payable if the coverage paying period is equal to the coverage benefit period. In the 25
th

month, the surrender charge is 24 percent of the annualized premium. The surrender charge
Sex/age (yrs) 20 30 40 50 60
Female 0.90 1.16 1.66 4.03 10.66
Male 1.02 1.17 2.15 5.53 13.73

28

percent reduces by one for e very month thereafter. If the policy is surrendered at any time
after the 49
th
month, the surrender charge is zero.

WITHDRAWAL CHARGES:
In a year tow withdrawals are free of charge
For every additional withdrawal, a charge of Rs.100 will be levied.

AN ILLUSTRATION, WHICH IS SHOWING THE PRICING
POLICY OF THE COMPANY:

THIS PRESENTATION IS PREPARED FOR: Mrs.Nisha Singh

Name of life insured: Mrs.Nisha Singh
Date of birth 01/07/1964/ female

Coverage type Face amount coverage annual (Rs.) benefit
coverage period premium
(years) (Rs.)
Flexi save plus (age) 90,000 30 4,563.60
Accidental Death &
Dismemberment rider 90,000 25 151.20

Policy premium 4,714.80
Due and payable Quarterly

The premium and associated benefits are described in the product brochures and the following
illustration. The details provided in the following illustration would enable you to see how
your p premium is being used. If you need help to interpret please contact your insurance
advisor or call Birla sun life insurance Companys toll free number, which is 1600227000.


29

Some benefits are guaranteed and some benefits are variable with returns based on the future
performance of your insure carrying on life insurance business. If your policy offers variable
returns then the policy fund values table will show two different rates of assumed future
investment returns. These rates return are not guaranteed and they are not upper or lower
limits of what you might get back, as the value of your policy is dependent on a number of
factors including future investment performance. The guaranteed amounts are the minimum
amount that you can expect if all the conditions mentioned later are fulfilled.

This illustration ignores the impact of the provisions of the income tax act, 1961. The
provisions of section 88 of the income tax act, 1961 govern a tax rebate for premiums paid
towards an insurance policy. The tax exemption for the benefits paid under a life insurance
policy is governed be section 10(10D) of the I income tax act, 1961. Both these sections may
be applicable to this policy .you may consult a qualified tax advisor for specific tax advice
related to you. If required by the act, we will withhold taxes from the benefits payable under
this policy. We also reserve to you. If required by the act, we will withhold taxes from the
benefits payable under this policy. We also reserve the right to recover from you levies such
as service tax levied by the authorities on insurance transactions.

Please note that in the following pages that illustrate the policy fund values:

The premium and all values shown are for the life insurance coverage and do not include
riders. The rider benefit amount will be payable, wherever applicable in case of happening of
the events as mentioned in the rider brochure in consideration of the payment of additional
premium/charges.

Policy fund values shown as at the end of the year and assume:
1. Premiums are paid in full when due,
2. No withdrawals are made,
3. No outstanding policy loans exit,
4. The investment fund options is not changed throughout the lifetime
5. of the policy,
6. Increase in premiums or charges for riders having non-guaranteed
7. premiums or charges are not recovered from the policy fund,

30

8. No change is made in the face amount of the life insurance coverage and
9. Policy fees and charges are at current levels as explained in the section policy fees and
charges. The premium mentioned in this illustration does not include top-up premium or
any underwriting extras.

10. Upon surrender or maturity of the policy, the amount payable to the policy owner is the
sum of:
11. Guaranteed policy fund surrender /maturity value, and
12. Non-guaranteed policy fund
13. Less any amounts owed to the company.

The sum of 1 and 2 above constitutes the policy fund.
With drawls can be made from the holding account, which comprised the non-guaranteed
policy fund.

Upon the death of the life insured, the death benefit is sum of
(1) Life insurance coverage face amount, and
(2) Policy fund

LESS ANY AMOUNTS OWED TO THE COMPANY
Provided that where the death of the life insured takes place before the commencement of the
policy anniversary, on or immediately following the age when the life insured reaches one
year, only the policy fund shall be payable.

The non-guaranteed policy fund may or may not arise depending on the performance of the
investment fund supporting the policy .an investment by you in any of the investment funds I
s subject to market and other risks, the value of the investment fund can go up or down
depending on the factors and forces affecting financial markets. Other than explicit guarantees
provided by the company, there can be no assurance that the objectives of any investment
fund will be achieved.




31

FEES AND CHARGES: The policy loading fee* is an up-front charge and varies as per the
premium payment mode and the policy year as given under:

In addition to the above policy-loading fee, the following policy fees and charges will be
recovered from the policy fund.
1) The cost of insurance of the life insurance coverage will be deducted by cancellation of
units at the prevailing unit price on a monthly basis. The annual insurance charges per
thousand of the life insurance coverage face amount for sample ages for healthy lives are as
follows:

2) An investment management fee not exceeding 1.5 percent per annum of the investment
fund will be charged by adjustment of the daily unit prices. Currently this fee is 1 percent per
annum.
3) Policy administration fees for the life insurance coverage will be reeducated by canceling
units on a monthly basis, as follows:
a) Rs. 22 per month; and
b) Annual charge of Rs. 2.88 per thousand of the life insurance coverage face amount will be
deducted in the first 10 years of the policy expect in the second policy year when it will be Rs.
15.24 per thousand of the life insurance coverage face amount. From the 11
th
year onwards
this annual charge (Rs. 2.88 per thousand of the life insurance coverage face amount)
increases at an annualized rate of a maximum of 3.75%, every year.

POLICY
YEAR
SINGLE 5-PAY 10-PAY 15-PAY OR
GREATER
1 3% 29.9% 54.6% 65%
2 N/A 5.0% 7.5% 7.5%
3 N/A 5.0% 7.5% 7.5%
4 N/A 5.0% 5.0% 5.0%
Sex/age (yrs) 20 30 40 50 60
Female 0.90 1.16 1.66 4.03 10.66
Male 1.02 1.17 2.15 5.53 13.73

32

4) The surrender charges to be levied vary based on the duration of the policy. During the first
24 months of the policy, the charges will be an amount equal to the annaslised premium
payable for this p policy. For the purpose of surrender charges only, annualized premium is
defined, as the amount that is payable if the coverage playing period is equal to the coverage
benefit period. In the 25
th
month, the surrender charge is 24 percent of the annuallised
premium. The surrender charge percent reduces by one for every month thereafter. If the
policy is surrendered at any time after the 49
th
, the surrender charge is zero
The premium net of all charges and fees will earn a minimum life insurance net return of 3
percent per annum, which constitutes the guaranteed fund. Any returns earned by the policy
fund in excess of the guarantied fund constitute non-guaranteed fund.
For a detailed description of the features of the product, please refer to the product broacher.
Acronyms used:
TPD- Total And Permanent Disability,
TPD/CI- Total And permanent Disability or Critical illness,
Death/TPD Death or And Permanent Disability,
Death/TPD/CI- Death or Total Permanent Disability or Critical illness.

TOOLS & PLANNERS

RETIREMENT

These tools and planners are provided to help you broadly in your financial planning.
However WE strongly recommend that you consult your Financial Planning Advisor before
taking any decisions . Click on suitable tool or planner based upon your financial planning
needs.

INSURANCE

Thinking about investing in a New Plan, but overwhelmed with features and options? Let our
guru help you by first identifying your needs.


33

PREMIUM CALCULATOR

Birla Sun Life Insurance Premium Calculator
Premium Back Term Plan
Flexi SecureLife II Retirement Plan
Birla Sun Life Term Plan
Single Premium Bond
Flexi Life Line
Flexi Cash Flow
ClassicLife Premier
PrimeLife Plan
PrimeLife Premier Plan
Flexi Save Plus
Pay By Term
Maturity Age
LifeCompanion Plan
Endowment Plan
MoneyBack Plan
Supreme-Life
Children's Dream Plan
Dream Plan
Birla Sun Life Insurance Gold-Plus
Careers
Post Your Resume
Job Openings
Alumni
Media
Advertisement
News Kit
BSLI News
Awards & Recognitions


34













CHAPTER -3


INTRODUCTION




















35

BRIEF HISTORY OF UNIT- LINKED INSURANCE:
The unit linked life insurance policy as it is understood and practiced in the west was
introduced in our country only in 2000 when LIC brought in to the market a policy called
BIMA PLUS. As a data, expect two or three new companies all the companies are selling
the unit linked life insurance policies. The term unit in our country is somehow identified
only with the units sold by UNIT TRUST OF INDIA. This product is also called EQUITY
LINKED POLICY or MARKET LINKED POLICY to indicate that the returns under
these plans are linked to the market returns of the equities or shares.

The credit of introducing the first unit linked plan goes to UTI when they brought out the Unit
linked life insurance (ULIP) in 1971,In 1989 LIC Mutual Fund introduced the DhanRaksha
Plan identified to the ULIP. The term of the policy in either 10 or 15 years. With the effect
from 1-7-02 the target amount under these two schemes has been introduced to Rs. 2 lakhs
from Rs.75, 000.it works like this: from the uniform contribution for each year (for example
@Rs.20,000 for ten years) a small portion is used to buy term death cover for Rs.2 lakhs and
the balance is invested in units and at the end of ten years the accumulations made in your
account is given as the maturity benefit along with a 5 or7.5% bonus. There is some
restriction in full death cover in the first two years. After two years the full death benefit will
be paid equal to the target amount. a free accident cover is also given for Rs.50,000. From
April 2000 this plan is made NAV driven and UTI has made several beneficial changes. In
fact, these plans are considered to be the cheapest insurance with good returns! As life
insurance people are not making these plans, they are not very popular in large numbers.

The concept involved in these unit or equity linked policies is that as the major part of your
premium amounts paid over a period of years is invested in equities and other capital market
instruments year after year, the return when it comes will not be affected very much by
inflation as it happens in a maturity value of the policy in any average life insurance policy for
the same period. The idea of linking insurance benefits to the performance of units was first
tried for annuities. The annuity benefit was for a fixed number of units, the value of which
depended upon the market value of a portfolio of equity assets. The teachers insurance and
annuity association in USA first introduced this method in 1952 to pay the annuities in
collaboration with the college retirement equity fund. The insurance companies could not
follow this method to extend the benefit to the general public due to legal obstacles and

36

funding problems till 1964. In 1959 the US supreme court ruled that such insures will be
subject to the regulation of Securities and Exchange Commission (SEC) only in 1964 the SEC
permitted insurance companies to introduce such annuities.

While it is called Unit- linked life insurance policy in UK it is called Variable insurance
contracts in USA. It is rightly called variable because both the premiums and the benefits
under the policy are variable according to eh choice of the policyholder. What is paid under
the policies is the returns on the performance of the chosen equities and not a fixed sum as in
an ordinary policies. The majority of them are whole life plans.

In USA, since the variable life insurance products switches the investment risk from the
insurance company to the policy owner, these types of policies are considered both insurance
contracts and securities and are regulated by both the securities &exchange commission and
the state insurance commissioner. An agent authorized to sell variable life insurance must be
licensed by the state as well as by the National Association of Securities Dealers (NASD) to
work as a registered representative.

As a security, variable insurance products are regulated by the securities &exchange
commission, which brings out a new set of agent requirements dealing, primarily with full and
fair disclosure laws. For example, any sales presentation or illustration must be preceded by
or accompanied by a prospectus approved by the SEC. all materials used in selling and the
SEC must also approve promoting these product prior to use.

In our country, however, only the IRDA regulates this policy and the investment of the
premiums collected under the policies. Also it is enough if the selling agent has passed the
basic IRDA insurance license examination. No special qualifications are need by the agent
and SEBI does not have any control over the designing of or illustration prepared by the
insurance companies in selling such policies.


37

ABOUT THE INDUSTRY
A joint venture between the Aditya Birla Group and Sun life Financial, Birla sun life
insurance forayed into the life insurance and retirement planning business by pioneering the
unique unit-linked solutions in India. In just over 2 years of its launch, the company has
catapulted to second position in new business premium in the highly competitive private life
insurance industry based on its strategy of unit-linked plans.
RULES & REGULATIONS THE ADITYA BIRLA GROUP:
Aditya Birla, a name that evokes all that is positive in business and life. It typifies integrity,
quality, performance, innovation, perfection and above all, character. In operation for over 50
years now, the Aditya Birla Group is one of Indias largest business houses. A highly
respected and admired group, rooted in performance ethics based on value creation for its
multiple stakeholders. The Aditya Birla Groups operations span over 40 units across 18
countries, anchored by a 72,000 strong committed workforce, a group turnover exceeding
Rs.27, 000 crore, an asset base which exceeds Rs.20, 000 crore and a market capitalization of
over Rs.13, 000 crore spread over 7 lac shareholders. Known for its rack solid fundamentals it
nurtures a culture where success does not come in the way of the need to keep learning afresh
to continue innovating and to carry on experimenting.

Being one of the largest corporate houses in India, and Aditya Birla Group enjoys a dominant
position in all the sectors in which it operates. It is the worlds largest producer of viscose
staple fibre, largest single location aluminum plant and the largest single location refiner of
palm oil. Whats more, it is the second largest producer of insulators and the fifth largest
producer of carbon black in the world.

In India, the group is the single largest producer of viscose filament yarn, aluminum, white
cement and the third largest in grey cement. Not to mention, the recognition of being the
market leader in the ready to wear branded apparel segment with brands like Allen Solly,
Louis Phillip, Van Heusen and peter England.

The flagship companies of the Aditya Birla Group include some of the largest and most
respected companies in India such as Grasim Industries Limited, Hindalco industries limited,
Indian Aluminum Company limited, Indian Rayan Industries Limited, Indo Gulf Corporation

38

Limited. The Group has larged power relationship with large corporations like Hindustan
Petroleum, Tata, Powergen Plc and AT&T.

The group fosters a culture that promotes excellence and rewards entrepreneurship. It
endeavors to make the workplace a source of creativity, innovation and self-fulfillment for its
employees. Nurturing a corporate culture imbedded with a high level of commitment and a
sense of shared destiny.

The mission of the Aditya Birla Group is creation of value for its customers, shareholders,
employees and the society at large.

SUN LIFE FINANCIAL:
Sun life financial is a leading international financial services organization. With a history that
dates back to 1871, Sun life financial has evolved from a single mutual life insurance to one
of the most highly rated insurance and wealth management institution in the world. Sun life
financial knows its value lies in more than assets and history. It also lies in the culture of the
integrity and the pursuit of excellence that have marked all of the organization endeavors.
Today the sun life financial group of comp anise and the partners are represented globally in
Canada, the United States, the Philippines, Japan, Indonesia, India and Bermuda.

In March of 2000, Sun life financial services of Canada, Inc, Sun life financiers parent
company, listed its shares on stock markets in Toronto, New York, London, and Philippines.
This new access to shareholders equity provides Sun life financial with even greater
opportunities to grow around the world.

The Sun life financial group of companies around the world, offer innovative and practical
financial solutions to individuals and corporations:
Life, Health and Disability
Pension Funds and Plans
Investment Management
Annuities and Savings
Trust, Brokerage and Banking


39

Sun life assurance Company of Canada, sun life financiers primary insurance business, has
excellent ratings with the worlds top ratings agencies. With assets under management as on
September 30, 2000 totaling more than CDN$345 billion, it ranks amongst the largest
international financial services organizations in the world. Sun life financial enjoys
independent rating that place us at the top of the financial sector in North America.

VISION:
To be a world-class 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 individual as well as corporate. Well trained professionals
through a multi channel distribution network and superior technology will make these
solutions available.

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.











40












CHAPTER -4


DATA ANALYSIS












41

TABULATION & ANALYSIS:
From the above questionnaire, we found number of findings and according to them we can do
analysis that which type of strategy should be adopted for improving the earnings of the
company given below-

QUESTION NO 1- How many people plan for their savings and investment?




This graph show that 64% people plan for their savings and investment and 36% dont
many people plan for their savings and investment .
0%
10%
20%
30%
40%
50%
60%
70%
YES NO
PEOPLE (IN %)
YES NO
PEOPLE (IN %) 64% 36%

42

QUESTION NO.2- How many people take help of professional advisor
for their investment?







This graph show that 35% take help of professional advisor for their investment and
65% dont take help of professional advisor for their investment.
0%
10%
20%
30%
40%
50%
60%
70%
YES NO
YES
NO
YES NO
PEOPLE (IN %) 35% 65%

43

QUESTION NO. 3- Number of people save regularly for-

SAVING ALTERNATIVS PEOPLE IN %
RETIREMENT 15%
CHILDRENS EDUCATION 25%
CHILDRENS MARRIGE 40%
TAXATION 15%
OTHERS 5%

This graph show that people save their money regularly 15% for retirement,25% for
childrens education,40% for childrens marriage, 15% for tax and 5% for other.
0%
5%
10%
15%
20%
25%
30%
35%
40%
PEOPLE IN %
RETIREMENT
CHILDRENS
EDUCATION
CHILDRENS
MARRIGE
TAXATION
OTHERS

44

QUESTION NO. 4 How many people save through insurance?





This graph shows that 35% people save their money from insurance and 65% people
save their money from other sorce.
0%
20%
40%
60%
80%
100%
YES NO
PEOPLE (IN %)
YES NO
PEOPLE (IN %) 35% 65%

45

Q1. Name & Age






58 percent of the officials belong to the age group of 35 and 50
22 percent of the officials belong to the age group of 25 to 34
20 percent of the officials belong to the age group of above 50
0%
10%
20%
30%
40%
50%
60%
25-34 years
35-50 years
50years +

46

Q2. Sex




69 percent are male officials
31 percent are female officials
0%
10%
20%
30%
40%
50%
60%
70%
male
female

47

Q3. Educational Qualification


72 percent are graduates and above
12 percent are those who are having technical and professional qualifications
16 percent are undergraduates.
55 percent are those who are associated with the field
25 percent are those who are in the managerial and administrative posts.
20 percent belongs to the others category.
0%
10%
20%
30%
40%
50%
60%
70%
80%
graduates
technical qualification
undergraduates
peolple associated with
insurance sector

48

Q4. How do you see the market for General Insurance industry in India?



Has a good prospect -------------------------67 percent
Same as life insurance industry ------------ 21 percent
Do not have a good prospect ------------ 8 percent
Do not know/ Can not say --------------- 4 percent
0%
10%
20%
30%
40%
50%
60%
70%
good prospect
similar to life insurance
sector
bad prospect
cant say

49

Q5. Why did you choose Birla Sun Life Insurance why not any other
insurance?




88 percent ----------------it gives better return and other facilities along with fringe
benefits
9 percent ------------------ other life insurance policies are not so lucrative than those
promote by Reliance
3 percent ------------------ do not know / can not say


0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
it gives better returns
Birla Sun Life Insurance is
more lucrative
cant say

50

Q6. What marketing strategies the company is adopting to promote its
products and services?




77 percent ------------------------ target oriented aggressive marketing
8 percent ------------------------ As per the market demand
12 percent --------------------- Following the company policies and principles.
3 percent ---------------------------- Do not know / Can not say





0%
10%
20%
30%
40%
50%
60%
70%
80%
aggressive marketing
strategy as per
market demand
following the
company's policies
cant say

51

SWOT ANALYSIS:

SWOT analysis of this company is given below-

STRENGTHS: Strength of this company is given below-
There is transparency in the scheme. The performance of the fund can be monitored on daily
or bi-weekly basis through the daily- declared NAV/ Unit prices and also through the website
of the company. At any given time you will k now the accumulations under your policy due to
the investment accruals.
Normally any time after one to three years time depending upon the scheme, you can chose to
withdraw your money by partial or complete surrender of units. The death benefit will be
proportionately reduced.
You can surrender the policy and get a guaranteed surrender value.
You can also take a loan on a policy after three years duration.
You can switch from one stream of investment to the other every year by paying a
small fee according to your changing needs.
You can top up your premium anytime during the term to increase your benefits.

The plans are available as endowment whole life money back or as pension plans.
In fact some companies allow you to have the contract as long as you want without a fixed
term, even up to death.
The option of with or without profits is also available in some plans. Actually some
companies give a guaranteed bonus as a percentage of the sum assured as bonus
The normal riders such as accident benefit, disability benefit critical illness or major surgical
assistance covers are also available.
The policies are issued with the usual free-look provision.
One company has floated a unit-linked policy for women with a critical rider benefit
specifically covering some gynecological illnesses.
You can buy the policy with a single premium like a bond or pay premium by the usual
yearly, half-yearly or quarterly mode.
Some companies offer even premium holiday option. If after paying premiums for three
years you are not able to pay the premium, the policy will be continued adjusting the overdue
premiums from your unit fund.

52

WEAKNESS: Weakness of this company is given below-
The expenses deducted from the premiums especially in the first two years
considerably shrink the amount that goes towards your investment corpus.
The heavy frontloading of the effectively acts as a disincentive for early withdrawals.
The unit-linked plans completely pass on the investment risk to the policyholder and
he has to be ever vigilant.

OPPORTUNITIES: Opportunities of this company is given below-
If unit-linked policies can be given section 88 benefits there is a valid reason that investment
in an ordinary mutual fund should also be given the same benefit, as they are basically same
except for the addition of insurance element in the unit-linked policy.
The rear end tax-free benefit is a very attractive tax break for the unit-linked policy as per the
current tax laws.
The return by way of capital appreciation in mutual fund as well as from the sale of stocks are
taxed as capital gains with the indexation benefit, according to the current tax laws. Only the
dividends are tax-free.

THREATS: Threats of this company is given below-
This is company is also suffered by the great market competition. There are number of
competitors of this company.
Another threat of this company is that the changing environment. Changing environment
means change in government, change in government policy, change is competitors policy.







53











CHAPTER-5

SUGGESTIONS

















54

SUGGESTIONS

By this project report there are the number of suggestion which can be given to the company
are given below-

Company should recruit well-informed, well-qualified, well-financial knowledge. So that he
will success to satisfy the potential customer for their investment or savings.
In fact, the contract to buy the product in my opinion is not the usual insurance contract
governed by the principle of unerimma fides but one of caveat emptor. Under the principle of
utmost good faith, the company expects the proposes to give all the material facts so that it
can charge the correct premium based on the factors of risk presented.

How to deal with the situation? The companies or IDRA cannot educate the policyholder.
They should educate the agent.

Prospective unit-linked policy buyers should understand the structure of the plans , the factors
that determine how good their returns will be and the risks involved and then figure out if they
have the risk appetite, whether they can get better returns on their investment elsewhere and
whether their investment horizon matches the long lock-ins over which these plans offer the
best rewards.

Insurance companies will generally give you a picture on the basis of the past performance of
the fund but the past performance of the fund is never an indicator of how the fund might
perform in the future.

Insurance companies allow you to shift from one fund to the other at any point of time. This
can be useful if you want to plan your investment based on your life needs.







55








CHAPTER-5
CONCLUSION















56

CONCLUSION
Unit linked policies are a very valuable addition to the existing array of insurance producers.
But, when sold to a wrong prospect or brought a wrong agent it will become useless. IRDA
and the companies should take care that well- trained and professional agents market these
product.

In view of what was discussed above, the buyer if they need such plans according to
their risk appetite should select a known, well- informed agent who is reliable. Agents who
are already dealing with investment or saving instrument or mutual funds, if they sell life
insurance also would be a good choice. In case they hence doubts about the availability of
such agents, it would be more advisable to go to corporate agent with a background in
financial instruments or still better, to a good broker who are likely to be better equipped than
an ordinary agent. Continued advice and guidance will be available with the corporate agent
and the broker as they are corporate entities.















57

BIBLIOGRAPHY:

B00KS
Research Methodology, C.R.Kothari, 3
rd
Edition, 2006
Marketing Management-Philip Kotler, 11
th
Edition, 2006

MAGAZINE
Insurance watch, May-July, 2007
India today, Jan-April, 2007
Business today, Feb.-August, 2007
Business world, Feb-July, 2007

NEWS PAPER
The times of new India
Hindustan Times
Economics Times,
Business Standard

WEB-SITE-
www.birlasunlife.com, accessed between Feb-August, 2007
www.google.com, accessed between Jan-September, 2007












58

ANNEXURES

Under the annexure we include-

Questionnaire
Survey Form

Survey form
An illustration of the company policy (All the documents which are received by the client at
the time of policy)

59

QUESTIONNAIRE:

Name: -----------------------------------------------------------------------------------------
Address: ---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Occupation: -----------------------------------------------------------------------------------
Tel.: Residence ---------------------------- Office ------------------------------------------
Date of Birth: ------------------------------ Annual Income -------------------------------
Family Particulars:
Name of spouse ------------------------------------------------------- Age ------------------
No. Of Children --------------------------------------------------------------------------------
1. Have you ever heard about Birla Sun Life Insurance?
Yes No

2. From where you got to know about Our Company?
Television Magazines Others

3. Do you take help of professional advisor for your investment?
Yes No

4. Do you save regularly for
Retirement Childrens marriage
Childrens education Taxation Others

5. Do you save through insurance?
Yes No

6. Would you like to get professional advice in insurance solution?
Yes No

7. Would you like to get help with our Insurance Company?
Yes No



60

10.2 SURVEY
(Sampling page)
Sources Of Names
A. School / college friends
B. Family friends
Source Letter

Persistency
source

C. Neighbours
D. Through Spouse
E. Through children
F. Through Hobbies / Spot
G. Previous employment







YEARLY INCOME
(In Rupees)
> 1 Lakh
> 1 Lakh but < 2.5 Lakhs
> 2.5 Lakhs but < 5 Lakhs
> 5 Lakhs


AGE
18 25 YEARS
26 35 YEARS
35 44 YEARS
OVER 45 YEARS
OCCUPATION Professional / proprietor
Manager / Executive
MARITAL STATUS Single
Married
ABILLITY TO
PROVIDE REFERALS
Good
Fair

Q 1 What marketing strategies the company is adopting to promote its products
and services?

Q2. Why did you choose Birla Sun Life Insurance why not any other insurance?

Q3. How do you see the market for General Insurance industry in India?
N
A
M
E
S


S
U
B
M
I
T
T
E
D


61

Q4. Educational Qualification
Q5. Sex
Q6. Name & Age

Q.7 Please express your opinion for the premiums paid for the above policy?
a) Very high [ ]
b) High [ ]
c) Moderate [ ]
d) Low [ ]
e) Very Low [ ]

Q.8 How do you come to know about this policy? (Please tick).
a) Advertisements [ ]
b) Friends and relatives [ ]
c) Direct selling agents [ ].
d) Others (please specify)_____________________.
Q.9 Are there any incentives (tax benefits or Bonuses) associated with this policy?
(Please give appropriate details about it).
____________________________________________________________________
________________________________________________


10. Are you satisfied with the incentives associated with your policy?
a) Highly satisfied [ ].
b) Satisfied [ ]
c) Moderate [ ]
d) Unsatisfied [ ]

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e) Highly Unsatisfied [ ].

Q. 11 If you are given a choice, which one you take:
A) ICICI
B) BIRLA SUNLIFE
C) TATA AIG
D) BAJAJ ALLIANZ
E) LIC
F) SBI

Q12 What other plans or flexibility you expect from Insurance companies?
A) More returns
B) Complementary gifts
C) Investment Pattern