Need

Based
Investme
nt
Solution
Our training was a very enriching experience for me, I have learnt so many
things, I got sight into the insurance world. Insurance role in everyones life
lot more than ever before, currently there is a comprehensive range of
products covering each type of policy available in the market.
We have studied various insurance plans covered under BSLI, and their
features. BSLI also gives various Riders, which provides extra benefits to the
customers. And we came to know about the pioneering features of BSLI, like
sales procedure etc.

Six Weeks
Industry
Training

APPENDIX 1

A PROJECT REPORT ON
<Insurance Industry>

TITLE OF PROJECT REPORT

<Need Based Investment Solution>

For
Birla Sun Life Insurance
By
Amit Das
PGP
IN FULFILLMENT OF
POST GRADUATION PROGRAMM IN PLANNING &
ENTREPRENEURSHIP

INDIAN INSTITUTE OF PLANNING &

MANAGEMENT
KOLKATA

APPENDIX 2

BONAFIDE CERTIFICATE

This is to certify that the Project Report titled Need

Based Investment Solution for Birla Sun Life
Insurance is a bona fide work carried out by Amit
Das of PGP of Indian Institute of Planning &
Managements,Kolkata.

(Branch Manager)
(Regional Manager)
Manager)
(HR Manager)

(Agency

Date:

Place:

APPENDIX 3
Acknowledgements
A six weeks (Industry Training) is a golden opportunity for
learning and self development. I consider myself very lucky and honored to have so
many wonderful people lead me through in completion of this project.

I would like to express my sincere gratitude and thanks to

Tanayee Banerjee, Agency Manager, Birla sun life insurance ltd, Dum Dum branch,
kolkata for giving us the guidance. I owe everything we have gained from the
project in terms of knowledge and experience to them, as without her timely
support and encouragement the project would not have been as fruitful as it has
been.

I also thank Mr. Chandan Pakrashi, Branch Manager for his

constant encouragement and guidance at every stage of this project. He has been
kind enough to spare his valuable time and share his corporate experiences, which
helped me to approach the project in the right way.

A humble Thank you Madam/Sir. Ms./Mr (Name here), HR

Department monitored my progress and arranged all facilities to make life easier. I
choose this moment to acknowledge her/his contribution gratefully.

Last but not the least I am also grateful to the entire staff of
Birla sun life insurance ltd Dum Dum Branch who helped me to collect the relevant
data and get the real gist of current insurance market scenario.

Amit Das

Contents

The History of Insurance

Introduction to Insurance

How does insurance work

Fundamental Principles Of Insurance

Introduction to Birla Sun Life Insurance
Key people of organization
Competitors
SWOT Analysis
Sales procedure in BSLI
Companys Products & Plans

Conclusion
Bibliography

BSLI Saral Health Plan

BSLI Classic Life Plan
BSLI Foresight Plan
BSLI Classic Endowment Plan
BSLI Platinum Advantage Plan
BSLI Vision

THE HISTORY OF INSURANCE

The roots of insurance might be traced to Babylonia, where traders were encouraged to assume
the risks of the caravan trade through loans that were repaid (with interest) only after the goods
had arrived safelya practice resembling bottomry and given legal force in the Code of
Hammurabi (c.2100 B.C.). The Phoenicians and the Greeks applied a similar system to their
seaborne commerce. The Romans used burial clubs as a form of life insurance, providing
funeral expenses for members and later payments to the survivors.
With the growth of towns and trade in Europe, the medieval guilds undertook to protect their
members from loss by fire and shipwreck, to ransom them from captivity by pirates, and to
provide decent burial and support in sickness and poverty. By the middle of the 14th cent., as
evidenced by the earliest known insurance contract (Genoa, 1347), marine insurance was
practically universal among the maritime nations of Europe. In London, Lloyd's Coffee House
(1688) was a place where merchants, shipowners, and underwriters met to transact business. By
the end of the 18th cent. Lloyd's had progressed into one of the first modern insurance
companies. In 1693 the astronomer Edmond Halley constructed the first mortality table, based
on the statistical laws of mortality and compound interest. The table, corrected (1756) by Joseph
Dodson, made it possible to scale the premium rate to age; previously the rate had been the
same for all ages

The history of insurance in India can be divided into three phases:

The first phase (pre-liberalisation)was dominated by private and foreign insurance

companies before the government nationalized the sector in 1956.
In the second phase (liberalisation0 reforms were initiated and IRDa was set up as the
regulator of the insurance sector. Private companies was invited and also FDI
In the third phase (post-liberalisation) many private companies started insurance
operations with a foreign partner in joint ventures . Currently there are 23 life insurance
companies operating in India

INTRODUCTION TO INSURANCE

What is a life insurance policy?

A life insurance policy provides financial protection to our family in the unfortunate event of
your death. At a basic level, it involves paying small sums each month (called premiums) to
cover the risk of our untimely demise during the tenure of the policy. In such an event, our
family (or the beneficiaries we have named in the policy) will receive a lump sum amount. In
case we live till the maturity of the policy, depending on the type of life insurance policy we
have opted for, we will receive returns the policy may have earned over the years. Today, there
are many variations to this basic theme, and insurance policies cater to a wide variety of needs.

What are the various types of life insurance policies?

Given below are the basic types of life insurance policies. All other life insurance policies are
built around these basic insurance policies by combination of various other features.

Term Insurance Policy

A term insurance policy is a pure risk cover policy that protects the person insured for a
specific period of time. In such type of a life insurance policy, a fixed sum of money called
the sum assured is paid to the beneficiaries (family) if the policyholder expires within the
policy term. For instance, if a person buys a Rs 2 lakh policy for 15 years, his family is
entitled to the sum of Rs 2 lakh if he dies within that 15-year period.

If the policy holder survives the 15-year period, the premiums paid are not returned back.
The advantage, apart from the financial security for an individuals family is that the
premiums paid are exempt from tax.

These insurance policies are designed to provide 100 per cent risk cover and hence they
do not have any additional charges other than the basic ones. This makes premiums paid
under such life insurance policies the lowest in the life insurance category.

Whole Life Policy

A whole life policy covers a policyholder against death, throughout his life term. The
advantage that an individual gets when he / she opts for a whole life policy is that the
validity of this life insurance policy is not defined and hence the individual enjoys the life
cover throughout his or her life.

Under this life insurance policy, the policyholder pays regular premiums until his death,
upon which the corpus is paid to the family. The policy does not expire till the time any
unfortunate event occurs with the individual.

Increasingly, whole life policies are being combined with other insurance products to
address a variety of needs such as retirement planning, etc.

Premiums paid under the whole life policies are tax exempt.

Endowment Policy

Combining risk cover with financial savings, endowment policies are among the popular
life insurance policies.

Policy holders benefit in two ways from a pure endowment insurance policy. In case of
death during the tenure, the beneficiary gets the sum assured. If the individual survives the
policy tenure, he gets back the premiums paid with other investment returns and benefits
like bonuses.

In addition to the basic policy, insurers offer various benefits such as double endowment
and marriage/ education endowment plans.

The concept of providing the customers with better returns has been gaining importance
in recent times. Hence, insurance companies have been coming out with new and better
ULIP versions of endowment policies. Under such life insurance policies the customers are
also provided with an option of investing their premiums into the markets, depending on
their risk appetite, using various fund options provided by the insurer, these life insurance
policies help the customer profit from rising markets.

The premiums paid and the returns accumulated through pure endowment policies and
their ULIP variants are tax exempt.

Money Back Policy

This life insurance policy is favoured by many people because it gives periodic payments
during the term of policy. In other words, a portion of the sum assured is paid out at regular
intervals. If the policy holder survives the term, he gets the balance sum assured.

In case of death during the policy term, the beneficiary gets the full sum assured.

New ULIP versions of money back policies are also being offered by various life
insurers.

The premiums paid and the returns accumulated though a money back policy or its ULIP
variants are tax exempt.

ULIPs

ULIPs are market-linked life insurance products that provide a combination of life cover
and wealth creation options.

A part of the amount that people invest in a ULIP goes toward providing life cover, while
the rest is invested in the equity and debt instruments for maximising returns. .

ULIPs provide the flexibility of choosing from a variety of fund options depending on the
customers risk appetite. One can opt from aggressive funds (invested largely in the equity
market with the objective of high capital appreciation) to conservative funds (invested in
debt markets, cash, bank deposits and other instruments, with the aim of preserving capital
while providing steady returns).

ULIPs can be useful for achieving various long-term financial goals such as planning for
retirement, childs education, marriage etc.

Annuities and Pension

In these types of life insurance policies, the insurer agrees to pay the insured a stipulated
sum of money periodically. The purpose of an annuity is to protect against financial risks as
well as provide money in the form of pension at regular intervals.

How does insurance work?

Insurance works by pooling risk.What does this mean? It simply means that a large group of
people who want to insure against a particular loss pay their premiums into what we will call
the insurance bucket, or pool. Because the number of insured individuals is so large, insurance
companies can use statistical analysis to project what their actual losses will be within the given
class. They know that not all insured individuals will suffer losses at the same time or at all.

This allows the insurance companies to operate profitably and at the same time pay for claims
that may arise. For instance, most people have auto insurance but only a few actually get into an
accident. You pay for the probability of the loss and for the protection that you will be paid for
losses in the event they occur.

Risks
Life is full of risks - some are preventable or can at least be minimized, some are avoidable and
some are completely unforeseeable. What's important to know about risk when thinking about
insurance is the type of risk, the effect of that risk, the cost of the risk and what you can do to
mitigate the risk. Let's take the example of driving a car.
Type of risk: Bodily injury, total loss of vehicle, having to fix your car
The effect: Spending time in the hospital, having to rent a car and having to make car payments
for a car that no longer exists
The costs: Can range from small to very large
Mitigating risk: Not driving at all (risk avoidance), becoming a safe driver (we still have to
contend with other drivers), or transferring the risk to someone else (insurance)
Let's explore this concept of risk management (or mitigation) principles a little deeper and look
at how you may apply them. The basic risk management tools indicate that risks that could
bring financial losses and whose severity cannot be reduced should be transferred. You should
also consider the relationship between the cost of risk transfer and the value of transferring that
risk.

Risk Control
There are two ways that risks can be controlled. We can avoid the risk altogether, or we can
choose to reduce your risk.
Risk Financing
If we decide to retain our risk exposures, then we can either transfer that risk (ie. to an insurance
company), or we retain that risk either voluntarily (ie. we identify and accept the risk) or
involuntarily (we identify the risk, but no insurance is available).

Risk Sharing
Finally, we may also decide to share risk. For example, a business owner may decide that while
he is willing to assume the risk of a new venture, he may want to share the risk with other
owners by incorporating his business.
So, back to our driving example. If we could get rid of the risk altogether, there would be no
need for insurance. The only way this might happen in this case would be to avoid driving
altogether. Also, if the cost of the loss or the effect of the loss is reasonable to us, then we may
not need insurance.
For risks that involve a high severity of loss and a low frequency of loss, then risk transference
(ie. insurance) is probably the most appropriate protection technique. Insurance is appropriate if
the loss will cause us or our loved ones a significant financial loss or inconvenience. Do keep in
mind that in some instances, we are required to purchase insurance (i.e. if operating a motor
vehicle). For risks that are of low loss severity but high loss frequency, the most suitable
method is either retention or reduction because the cost to transfer (or insure) the risk might be
costly. In other words, some damages are so inexpensive that it's worth taking the risk of having
to pay for them yourself, rather than forking extra money over to the insurance company each
month.
The Risk Management Process
After you have determined that you would like to insure against a loss, the next step is to seek
out insurance coverage. Here we have many options available to you but it's always best to shop
around. We can go directly to the insurer through an agent, who can bind the policy. The
process of binding a policy is simply a written acknowledgement identifying the main
components of our insurance contract. It is intended to provide temporary insurance protection
to the consumer pending a formal policy being issued by the insurance company. It should be
noted that agents work exclusively for the insurance company.

There are two types of agents:

1. Captive Agents: Captive agents represent a single insurance company and are required to
only do business with that one company.

2. Independent Agent: Independent agents represent multiple companies and work on behalf
of the client (not the insurance company) to find the most appropriate policy.

Underwriting
Underwriting is the process of evaluating the risk to be insured. This is done by the insurer
when determining how likely it is that the loss will occur, how much the loss could be and then
using this information to determine how much you should pay to insure against the risk. The
underwriting process will enable the insurer to determine what applicants meet their approval
standards. For example, an insurance company might only accept applicants that they estimate
will have actual loss experiences that are comparable to the expected loss experience factored
into the company's premium fees. Depending on the type of insurance product you are buying,
the underwriting process may examine your health records, driving history, insurable
interest etc.
The concept of "insurable interest" stems from the idea that insurance is meant to protect and
compensate for losses for an individual or individuals who may be adversely affected by a
specific loss. Insurance is not meant to be a profit center for the policy's beneficiary. People are
considered to have an insurable interest on their lives, the life of their spouses (possibly
domestic partners) and dependents. Business partners may also have an insurable interest on
each other and businesses can have an insurable interest in the lives of their employees,
especially any key employees.
Insurance Contract
The insurance contract is a legal document that spells out the coverage, features, conditions and
limitations of an insurance policy. It is critical that we read the contract and ask questions if we
don't understand the coverage. We don't want to pay for the insurance and then find out that
what we thought was covered isn't included
Insurance terminology:
Bound: Once the insurance has been accepted and is in place, it is called "bound". The process
of being bound is called the binding process.
Insurer: A person or company that accepts the risk of loss and compensates the insured in the
event of loss in exchange for a premium or payment. This is usually an insurance company.
Insured: The person or company transferring the risk of loss to a third party through a
contractual agreement (insurance policy). This is the person or entity who will be compensated
for loss by an insurer under the terms of the insurance contract.

Insurance Rider/Endorsement: An attachment to an insurance policy that alters the policy's

coverage or terms.
Insurance Umbrella Policy: When insurance coverage is insufficient, an umbrella policy may
be purchased to cover losses above the limit of an underlying policy or policies, such
as homeowners and auto insurance. While it applies to losses over the dollar amount in the
underlying policies, terms of coverage are sometimes broader than those of underlying policies.
Insurable Interest: In order to insure something or someone, the insured must provide proof
that the loss will have a genuine economic impact in the event the loss occurs. Without an
insurable interest, insurers will not cover the loss. It is worth noting that for property insurance
policies, an insurable interest must exist during the underwriting process and at the time of loss.
However, unlike with property insurance, with life insurance, an insurable interest must exist at
the time of purchase only.

FUNDAMENTAL PRINCIPLES OF INSURANCE

INDEMNITY
A contract of insurance contained in a fire, marine, burglary or any other policy (excepting life
assurance and personal accident and sickness insurance) is a contract of indemnity. This means
that the insured, in case of loss against which the policy has been issued, shall be paid the actual

amount of loss not exceeding the amount of the policy, i.e. he shall be fully indemnified. The
object of every contract of insurance is to place the insured in the same financial position, as
nearly as possible, after the loss, as if he loss had not taken place at all. It would be against
public policy to allow an insured to make a profit out of his loss or damage.
UTMOST GOOD FAITH
Since insurance shifts risk from one party to another, it is essential that there must be utmost
good faith and mutual confidence between the insured and the insurer. In a contract of insurance
the insured knows more about the subject matter of the contract than the insurer. Consequently,
he is duty bound to disclose accurately all material facts and nothing should be withheld or
concealed. Any fact is material, which goes to the root of the contract of insurance and has a
bearing on the risk involved. It is only when the insurer knows the whole truth that he is in a
position to judge (a) whether he should accept the risk and (b) what premium he should charge.
If that were so, the insured might be tempted to bring about the event insured against in order to
get money.
INSURABLE INTEREST
A contract of insurance effected without insurable interest is void. It means that the insured
must have an actual pecuniary interest and not a mere anxiety or sentimental interest in the
subject matter of the insurance. The insured must be so situated with regard to the thing insured
that he would have benefit by its existence and loss from its destruction. The owner of a ship
run a risk of losing his ship, the charterer of the ship runs a risk of losing his freight and the
owner of the cargo incurs the risk of losing his goods and profit. So, all these persons have
something at stake and all of them have insurable interest. It is the existence of insurable
interest in a contract of insurance, which distinguishes it from a mere watering agreement.
CAUSA PROXIMA
The rule of causa proxima means that the cause of the loss must be proximate or immediate and
not remote. If the proximate cause of the loss is a peril insured against, the insured can recover.
When a loss has been brought about by two or more causes, the question arises as to which is
the causa proxima, although the result could not have happened without the remote cause. But if

the loss is brought about by any cause attributable to the misconduct of the insured, the insurer
is not liable.
RISK
In a contract of insurance the insurer undertakes to protect the insured from a specified loss and
the insurer receive a premium for running the risk of such loss. Thus, risk must attach to a
policy.
MITIGATION OF LOSS
In the event of some mishap to the insured property, the insured must take all necessary steps to
mitigate or minimize the loss, just as any prudent person would do in those circumstances. If he
does not do so, the insurer can avoid the payment of loss attributable to his negligence. But it
must be remembered that though the insured is bound to do his best for his insurer, he is, not
bound to do so at the risk of his life.
SUBROGATION
The doctrine of subrogation is a corollary to the principle of indemnity and applies only to fire
and marine insurance. According to it, when an insured has received full indemnity in respect of
his loss, all rights and remedies which he has against third person will pass on to the insurer and
will be exercised for his benefit until he (the insurer) recoups the amount he has paid under the
policy. It must be clarified here that the insurer's right of subrogation arises only when he has
paid for the loss for which he is liable under the policy and this right extend only to the rights
and remedies available to the insured in respect of the thing to which the contract of insurance
relates.

CONTRIBUTION
Where there are two or more insurance on one risk, the principle of contribution comes into
play. The aim of contribution is to distribute the actual amount of loss among the different
insurers who are liable for the same risk under different policies in respect of the same subject
matter. Any one insurer may pay to the insured the full amount of the loss covered by the policy

and then become entitled to contribution from his co-insurers in proportion to the amount which
each has undertaken to pay in case of loss of the same subject-matter.
In other words, the right of contribution arises when
(I)

there are different policies which relate to the same subject-matter

(II)

the policies cover the same peril which caused the loss

(III)

all the policies are in force at the time of the loss, and

(IV)

one of the insurers has paid to the insured more than his share of the
loss.

BIRLA SUN LIFE INSURANCE

Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is a joint venture

between the Aditya Birla Group, a well known and trusted name globally amongst Indian
conglomerates and Sun Life Financial Inc, leading international financial services organization
from Canada. The local knowledge of the Aditya Birla Group combined with the domain
expertise of Sun Life Financial Inc. offers a formidable protection for its customers' future.
With an experience of over 10 years, BSLI has contributed significantly to the growth and
development of the life insurance industry in India and currently ranks amongst the top 6
private life insurance companies in the country.
Known for its innovation and creating industry benchmarks, BSLI has several firsts to its
credit.It was the first Indian Insurance Company to introduce "Free Look Period" and the same
was made mandatory by IRDA for all other life insurance companies. Additionally, BSLI
pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India.
To establish credibility and further transparency, BSLI also enjoys the prestige to be the
originator of practice to disclose portfolio on monthly basis. These category development
initiatives have helped BSLI be closer to its policy holders expectations, which gets further
accentuated by the complete bouquet of insurance products (viz. pure term plan, life stage
products, health plan and retirement plan) that the company offers.
Add to this, the extensive reach through its network of 600 branches and 133,572 empanelled
advisors. This impressive combination of domain expertise, product range, reach and ears on
ground, helped BSLI cover more than 2.5 million lives since it commenced operations and
establish a customer base spread across more than 1500 towns and cities in India. To ensure that
our customers have an impeccable experience, BSLI has ensured that it has lowest outstanding
claims ratio of 0.00% for FY 2011-12.
Additionally, BSLI has the best Turn Around Time according to LOMA on all claims
Parameters. Such services are well supported by sound financials that the Company has. The
AUM of BSLI stood at 21062crs as on March 31, 2012, while the company has a robust capital
base of Rs. 2450 crs.

Vision
To be a leader and role model in a broad based and integrated financial services business.

Values
Integrity
Commitment
Passion
Seamlessness
Speed
About Aditya Birla Financial Services Group (ABFSG)
About Aditya Birla Group
A US $35 billion corporation, the Aditya Birla Group is in the league of Fortune 500. It is
anchored
by an extraordinary force of 133,000 employees, belonging to 42 different nationalities. The
group
operates in 36 countries across six continents truly India's first multinational corporation.
About Aditya Birla Financial Services Group
Aditya Birla Financial Services Group (ABFSG) ranks among the top 5 fund managers in
India (excluding banks and LIC) with an AUM of ~USD 17.5 billion. Having a strong
presence across the life insurance, asset management, NBFC, private equity, retail broking,
distribution & wealth management and general insurance broking businesses, ABFSG is
committed to serve the end-to-end financial services needs of its retail and corporate
customers. The seven companies representing ABFSG are Birla Sun Life Insurance Company
Ltd., Birla Sun Life Asset Management Company Ltd., Aditya Birla Finance Ltd., Aditya
Birla Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., Aditya Birla Money Mart Ltd, and
Aditya Birla Insurance Brokers Ltd. In FY 2011-12, ABFSG reported consolidated revenue
from these businesses at Rs. 6550 Crore (USD 1.3 billion) and earnings before tax at Rs. 600
Crore. Anchored by about 17,000 employees and trusted by about 5.5 million customers,
ABFSG has a nationwide reach through more than 1,775 points of presence and about
200,000 agents / channel partners.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a
diverse range of protection and wealth accumulation products and services to individuals and
corporate customers. Chartered in 1865, Sun Life Financial and its partners today have
operations in key markets worldwide, including Canada, the United States, the United
Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.
As of March 31, 2012, the Sun Life Financial group of companies had total assets under
management of $494 billion.

KEY PEOPLE OF ORGANIZATION

Board of Directors
Mr. Donald Stewart
Mr. Ajay Srinivasan
Mr. Kumar Mangalam Birla
Mr. Jayant Dua
Mr. Bishwanath Puranmalka
Mr. Kevin Strain
Mr. Venkatesh Mysore
Mr. Kevin Strain
Mrs. Tarjani Vakil
Mr. Gian Gupta
Mr. Suresh Talwar
Dr. Rakesh Jain

Management Team
Mr. Jayant Dua
Mr. Mayank Bathwal
Mr. Amitabh Verma
Mr. Sashi Krishnan
Mr. Niall O'Hare
Mr. Arun Malkani
Mr. Pramod Krishnamurthy
Mr. Saurov Ghosh
Mr. Lalit Vermani
Mr. Vikas Seth

MD & CEO
CFO & Head of Institutional Sales
Chief Operating Officer
Chief Investment Officer
Chief Actuarial Officer
Chief Marketing Officer
Head Information Technology
Head Human Resources & Training
Head Compliance, Risk, Legal & Audit
Head of Sales DSF

Competitors: Life insurance corporation

ING vysya life insurance
Max network life insurance
MetLife insurance
Aviva life insurance
Bharathi Axa life insurance
Bajaj Allianz life insurance
Tata AIG life insurance
Reliance life insurance
Kotak Mahindra life insurance
ICICI Prudential Life Insurance

Competitors in Detail:Aviva life insurance:

Avi v a L i f e I n s u r a n c e C o m p a n y I n d i a P v t . L t d . I s a j o i n t v e n t u r e between
Aviva of UK and Dabur, one of India's leading producers of traditional
healthcare products. Aviva holds a 26 per cent stake in the joint venture and the Dabur group
holds the balance 74 per cent share.
Bajaj Allianz:
Bajaj Allianz is a joint venture between Allianz AG one of the world's largestinsurance
companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in theworld. Bajaj
Allianz is into both life insurance and general insurance. Allianz Group is one of the world's
leading insurers and financial services providers. Founded in 1890 in
Berlin,Allianz is now present in over 70 countries
HDFC Standard Life Insurance Co. Ltd:
is a joint venture between HDFC Ltd., India'slargest housing finance institution
and Standard Life Assurance Company, Europe's largestmutual life company. It
was the first life insurance company to be granted a certificate of registration by the
IRDA on the 23rd of October 2000.
ING Vysya Life Insurance Company Limited:

is a joint venture between Vysya Bank andING Group of Holland, the world's 4th largest
financial services group, with presence across50 countries, and a heritage of over 150 years.
Kotak Mahindra Old Mutual Life Insurance Ltd:
i s a j o i n t v e n t u r e b e t w e e n K o t a k Mahindra Bank Ltd. (KMBL), and Old Mutual plc.
Kotak Mahindra is one of India's leadingfinancial institutions and offers a range of financial
services such as commercial banking.
Life Insurance Corporation of India:
(LIC) is an autonomous body authorized to run the life insurance business in India with
its Head Office at Mumbai. It has been established by anact of the Parliament and started
functioning from 1/9/1956.
ICICI Prudential Life Insurance :
ICICI Prudential life insurance is a part of ICICI Bank.
Max New York Life Insurance Company Limited
is a joint venture between Max India Limited, a multi-business corporate, and New York
Life International, a global expert in lifeinsurance. New York Life is a Fortune 100 company
that has over 160 years of experience inthe life insurance business.
MetLife India Insurance Co. Pvt Ltd
is a joint venture between MetLife Group and itsIndian partners. The Indian
partners include J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants,
Geojit Securities, Way2Wealth, and Mini Muthoothu.
Reliance Life Insurance Company
Limited is a part of Reliance Capital Ltd. of the Reliance- Anil Dhirubhai Ambani Group.
The company acquired 100 per cent shareholding in AMPSanmar Life Insurance
Company in August 2005. Taking over AMP Sanmar Life provided Reliance Life
Insurance a readymade infrastructure and a portfolio.
SBI Life Insurance
is a joint venture between the State Bank of India and Cardiff SA of France. SBI
Life Insurance is registered with an authorized capital of Rs 500 crore and a paidup capital of
Rs 350 cores.
Tata AIG Life Insurance Company
Limited is a joint venture between Tata Group and A m e r i c a n I n t e r n a t i o n a l
G r o u p , I n c . ( A I G ) . Tat a G r o u p i s o n e o f t h e o l d e s t a n d l e a d i n g business
groups of India. Tata Group has had a long association with India's insurance sector having been
the largest insurance company in India prior to the nationalization of insurance.T h e L a t e S i r

D o r a b Tat a w a s t h e f o u n d e r C h a i r m a n o f N e w I n d i a A s s u r a n c e C o . L t d . ,
a group company incorporated way back in 1919.

SWOT Analysis
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 .
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.

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.

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.

SALES PROCEDURE IN BSLI

BSLI ensure that its policyholder get the best out of the policy offered to them by their
Advisors. Forthis, BSLI follows a set of procedure of selling Insurance to the clients. The sales
procedure can be diagrammatically represented as follows

1. Pitching the customer: The first and foremost thing is that, client should be ready to

purchase the Insurance plan. Insurance is not a very preferable product yet in India. And, thus,
co. has to be very vigilant. Advisors, at BSLI, maintain relationships and make the most of their
Goodwill. Insurance is a Relationship oriented business. Keeping this in mind BSLI also
initiated Bancassurance, Birla Sun Life Insurance where Banks image of being loyal to the
customers, plays a major role in pitching the customer to buy Insurance. BSLI uses following
routes for distributing their Product to general public:
a. Direct Personal Contacts (through Advisors)
b. Bancassurance (through Banks)
c. Personal Relations (through co. employees)
d. Existing Policyholders.
2. Sales Illustration: BSLI is the first company to give demonstration of the fund
performance i.e. how a certain policy will perform or will give returns. BSLI Advisors give
sales illustration. Fund performance is shown on 6% and 10% projections. If client find these
projected returns suitable to his/her risk profile, he go for purchasing the policy.
3. Proposal Form: Now as client is ready to get insured, advisor gives him the proposal
form and asks for all the documents required. Proposal form is a 4 page document that
contains all the necessary information related to the Insured and the Owner of the policy.
Documents required along with the proposal form are:
Date-Of-Birth Proof
Address & ID Proof
Income Certificate
Medical Certificates (only if Insurer is a senior citizen)
4. After Sales Service: Now after the Insurance is sold, follow-ups are required. Advisor
needs to maintain good relations with the policyholder. Insurance co. can generate further
business, only if, existing policyholders are satisfied with the services being provided by
the advisor of the co. Thus, BSLI keeps this in mind and Business Development
Executives continuously track the needs of the policyholders. BSLI provides the
policyholders with monthly updates of the fund performance and also discloses the asset
portfolio of the fund. This assists the policyholders to manage their policy according to
their risk profile. They can, thus, change their fund allocation as well as the asset
allocation in any fund, chosen by them.

COMPANYS PRODUCTS & PLANS

BSLI Saral Health Plan
This plan offers :
Cover for hospitalisation expenses
Reimbursement of regular healthcare expenses
Critical illness cover
Terminal Illness and death benefit
The Saral process:
1. Choose pay term and health insurance benefit term from the options of 10 pay/10 term, 10
pay/20 term, 20 pay/20 term.
2. Choose your additional premium (if any), to enhance your health reimbursement benefit to
meet your future health & medical related expenses.
3.

Answer four health related Questions. No medical tests required.

Investment Option
For our convenience, they offer one simple investment option the Life Cycle Option. Under
this option our portfolio will be structured according to our age and risk profile.
We can decide our approach towards investment - conservative, moderate or aggressive. They
will then monitor and administer our portfolio, saving our time and effort involved in
overseeing it. With our increasing age and changing risk profile, our investments will be
automatically shifted from riskier assets to safer assets.
The premiums we pay will be invested between two investment funds Maximiser (100%
equity) and Income Advantage (100% debt). This will be done in a pre-determined proportion,
based on the selected risk profile and our age when the premium is invested.
Based on choices, customer will receive a host of benefits as below:
1. Health Insurance Benefit: We can claim this benefit in case of Hospitalisation and/or
Critical Illness during the health insurance benefit term.

a. For hospitalisation beyond 48 hours, we will receive a specified amount upto a maximum of
Rs.8,000 per day, depending on the nature of treatment involved.
b. For one of the four covered critical illnesses (Heart Attack, Stroke, Cancer and Major Organ
Transplant), we will receive a lump sum equal to Rs.20,000 x the policy year in which the
illness occurs (e.g. if illness occurs in 3rd policy year, you receive Rs.20,000 x 3 = Rs.60,000).
Our health insurance benefit is fixed at Rs.10 lakhs for the health insurance benefit term.
2. Health Reimbursement Benefit: To take care of our future health & medical related
expenses, our policy premium is used to create a unit-linked fund. We can use this benefit to
claim reimbursement of expenses such as dental treatment, pathology & diagnostic expenses,
doctors fees etc. This reimbursement is free of charge 4 times a year, after completion of 5
policy years. Even after completion of your health insurance benefit term, we can continue to
claim reimbursement of expenses to the extent of your Fund Value balance. All we have to do is
provide us bills of expenses made to get the amount reimbursed.
3. Guaranteed Additions: Our Fund Value will be boosted with Guaranteed Additions at the
end of the health insurance benefit term, if all premiums are paid.
4. Terminal Illness and Death Benefit: In the unfortunate event of a terminal illness or
condition, we can claim the full Fund Value without submission of bills. In the unfortunate
event of death, the nominee will receive the Fund Value.
5. Current Tax Benefits: Under Section 80D, premium amount up to Rs. 15,000 (Rs.
20,000 for senior citizens) per year is allowed as deduction from our taxable income each
year.

BSLI Classic Life Plan

This plan offers you:
Flexibility of directing our savings in 10 Investment Funds, as per
risk appetite
Choice of Pay Term
Whole life cover
Enhanced financial security for your loved ones

How BSLI Classic Life Plan works:

1.We select the Savings Date that suits our retirement goals.
2. We select the Basic Premium that we want to pay every year.
3. We will receive Basic Sum Assured which is the minimum death benefit payable on
the demise of the life insured. The Basic Sum Assured is automatically determined as
your Basic Premium multiplied by:
The higher of 10 or the number of years to attain age 70 divided by 2, for entry ages
below 45; or
The higher of 7 or the number of years to attain age 70 divided by 4, for entry ages 45
and above
4. We can select the number of years we want to pay our premiums, and select our Pay
Term from option of 5-Pay / 10-Pay / 15-Pay / 20-Pay / To Savings Date.
5. We have the option to choose Enhanced Sum Assured to increase the financial
security for our loved ones. This increases our life cover over and above the Basic Sum
Assured at a nominal cost.
6. We have the option to choose from range of riders and customise the security of our
family's financial future.
Self-Managed Option - The flexibility to direct our savings in range of 10 funds
The Self-Managed Option gives us complete access to invest our premiums in well
established suite of 10 Investment Funds, ranging from 100% debt to 100% equity. We
also enjoy full freedom to switch from one Investment Fund to another, as per our
changing requirements.
Choose from range of 10 Investment Funds, to suit our risk appetite
Allocate our savings in the proportion of our choice
Change our allocations as per your changing requirements
Plan Summary
Policy Term

Whole life

Entry Age

18 to 45
years

18 to 50
years

18 to 55
years

18 to 60
years

Savings Date

To age 55

To age 60

To age 65

To age 70

Basic Premium

Minimum Rs. 25,000 p.a. if paid annually

Minimum Rs. 30,000 p.a. if paid monthly, quarterly or
semi-annually

Pay Term

Short pay 5, 10, 15, 20

years

To Savings Date