A

Project report
On

Performance evaluation of Birla Sun Life Insurance products in

comparison with Life Insurance Corporation (LIC)

INSTITUTE OF MANAGEMENT AND RESEARCH

{Affiliated to C.C.S.University Meerut}
In Partial fulfillment of requirement of degree of

BBA (2007-2010)
SUBMITTED TO:
SUBMITTED BY:
MISS. SHIKA
RAJ RAGHUVANSHI

ROHIT

(Projects Guide)
SEM.

BBA-6TH

Roll
no. 9051633

GUIDES CERTIFICATE
This is to certify that the project entitled Performance evaluation of Birla Sun Life
Insurance products in comparison with Life Insurance Corporation (LIC)
is being submitted in partial fulfillment of the requirement for the award of becholer s
degree of business administration of C.C.S. university Meerut. It is a confined research
work carried out by ROHIT RAJ RAGHUVANSHI under my supervision. Any part of
research work has not been submitted for any other degree. The assistance and help
received during the execution of the project has been fully acknowledged.

MISS SHIKA
PROJECT GUIDER

ACKNOWLEDGEMENT
I take this opportunity to express my acknowledgement and deep sense of gratitude
for rendering valuable assistance and guidance to me by following personality for
successful completion of my project.
I am highly obliged to my project guide Miss Shika Madam for his personal
encouragement, prompt assistance and help provided to me in completion of my
project. He has helped me a lot by giving suggestions and guidance whenever needed.
His contribution has been extremely useful and is greatly appreciated. I honor his
knowledge and competence in the field of management.

ROHIT RAJ RAGHUVANSHI

9051633
BBA-6TH SEM

PREFACE

To achieve partial and concrete results, it is necessary that theoretical knowledge

must be supplemented with practical environment.
Keeping this view in mind, I have completed my research work regarding
Performance evaluation of Birla Sun Life Insurance products in comparison
with Life Insurance Corporation (LIC) By doing this research work I have learnt
a lot of things which would be really helpful for me in future. This experience in
decision making and practical application of knowledge has contributed greatly to
my growth.

ROHIT RAJ RAGHUVANSHI

DECLARATION

I hereby declare that the survey entitled, Performance evaluation of Birla Sun Life
Insurance products in comparison with Life Insurance Corporation (LIC), that no
part of research work has been submitted for any other degree. I also undertake that work
is purely academic and no part has been copied or taken from any where. The motive
behind the research project was Performance evaluation of Birla Sun Life Insurance
products in comparison with Life Insurance Corporation (LIC)

ROHIT RAJ RAGHUVANSHI

9051633
BBA 6TH SEM.

INDEX
5

Serial
No.

Particulars

Page No.

Introduction to Insurance

2.

Company profile

16

3.

Major competitor LIC

28

4.

Various life insurance plans

of BSLI

38

5.

Various plans of LIC

40

6.

Major plans of BSLI

42

7.

Major plans of LIC

47

8.

Objectives

57

9.

Research Methodology

58

10.

Data Analysis

60

11.

Findings

71

12.

Suggestions

73

13.

Limitations

75

14.

Conclusion

77

15.

Bibliography

79

16.

Annexure

81

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

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

Major types of insurances are as mentioned below:

Life insurance: Descendants family receives financial benefits. Life insurances
also offer paid proceeds to the beneficiary.
Automobile insurance: Usually automobile insurances cover damages and legal
financial expenditures of the automobile driver.
Health insurance: Health insurance covers the expenditures associated to treatment
and medical expenditures.
Credit insurance: Borrowers often fail to repay debts, loans and mortgages due to
certain unavoidable circumstances, credit insurances can be of great help during
such crisis.
Property insurance: Property protection insurance provides protection from risks
associated to theft, fire, floods etc.

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

How life insurance works

There are three parties in a life insurance transaction; the insurer, the insured, and the
owner of the policy (policyholder), although the owner and the insured are often the same
person. For example, if Mr. Rajan buys a policy on his own life, he is both the owner and
the insured. But if Mrs. Anita, his wife, buys a policy on Rajans life, she is the owner and
he is the insured. The owner of the policy is called the grantee (he or she will be the
person who will pay for the policy). Another important person involved is the beneficiary.
The beneficiary is the person or persons who will receive the policy proceeds upon the
death of the insured. The beneficiary is not a party to the policy, but is designated by the
owner, who may change the beneficiary unless the policy has an irrevocable beneficiary
designation. With an irrevocable beneficiary, that beneficiary must agree to changes in
beneficiary, policy assignment, or borrowing of cash value.
The policy, like all insurance policies, is a legal contract specifying the terms and
conditions of the risk assumed. Special provisions apply, including a suicide clause
wherein the policy becomes null if the insured commits suicide within a specified time for
the policy date (usually two years). Any misrepresentation by the owner or insured on the
application is also grounds for nullification. Most contracts have a contestability period,
also usually a two-year period; if the insured dies within this period, the insurer has a legal

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

10

MAJOR PLAYERS OF INDIA IN INSURANCE

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

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

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

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

ICICI Prudential ICICI Bank with Prudential plc, both well known & strong financial
institutions came together in December 2000 to form an insurance company - ICICI
Prudential Life Insurance.

11

Max New York Life Max Indias leading multi business corporation & New York Life
joined there hands in 2000.The company started there operations in 2001. The company is
involved in Life & health products.

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

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

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

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

12

Kotak Mahindra A joint venture of Kotak Mahindra group & Old Mutual plc is known
as Kotak Mahindra Old Mutual Funds. The Company started commencing its business in
2001. The company aim is to help customers in making there financial decisions.
Future Generali Life Future Generali is a joint venture between Future Group of India &
Italy based Generali Group.Future Generali in India is into both Life & Non Life
businesses in India. The company wants to provide a financial security to all.

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

Shriram Life Shriram Life Insurance Company is a joint venture between Shriram
Group and Sanlam Group.Shriram Group is one of Indias most esteemed financial
services & Sanlam Group is one of the largest life insurance providers of South Africa.
TATA AIG The TATA Group and American International Group Inc together formed Tata
AIG Life Insurance Co. Ltd.Tata Group holds 74% stake in the insurance venture with
AIG holding the balance 26%. They started their operations in April 2001

Aviva Aviva, one of UK's largest insurance company and world's 5th largest insurance
group. It was one of the first international insurance company to set up its office in India
in the year 1995. They introduced the concept of banc assurance in India.

13

IDBI Fortis IDBI Fortis Life Insurance Co. Ltd is a joint venture between three financial
institutes; they are IDBI Bank, Federal Bank and Fortis. They introduced there plans in
March 2008. IDBI owns 48% equity while Federal Bank and Fortis own 26% equity each.

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

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

Star Union Star Union Dai-ichi Life Insurance Co.Ltd. Is formed by three various
financial institutions. Bank of India, Union Bank of India and Dai-ichi Mutual Life
Insurance Company This firm was incorporated in the year 2007 and got their IRDA
license on the 26th Dec 2008.

14

Some of the important milestones in the life insurance business in India

are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil
started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company
started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the central
government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.

15

16

17

Birla Sun Life Insurance Company Limited is a joint venture between The Aditya

Birla Group, one of the largest business houses in India and Sun Life Financial Inc., a
leading international financial services organisation. The local knowledge of the Aditya
Birla Group combined with the expertise of Sun Life Financial Inc., offers a formidable
protection for your future.
The Aditya Birla Group has a turnover of close to Rs. 119000 crores, with a market
capitalisation of Rs. 133875 crores (as on 31st March 2008). It has over 100,000
employees across all its units worldwide. It is led by its Chairman - Mr. Kumar Mangalam
Birla. Some of its key companies are Hindalco, Grasim and Aditya Birla Nuvo.

Sun Life Financial

Sun life financial based in Canada-started in 1865.
It operates in all the important markets of the world like Canada, the United States, the
United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and
Bermuda.
Sun Life Financial Inc. has assets under management of over US$404.7 billion (as on 31st
March, 2008). It is a leading performer in the life insurance market in Canada.

18

19

20

21

Birla Sun Life Insurance

(BSLI)

has been operating for 9 years. It has contributed

significantly to the growth and development of the life insurance industry in India. It
pioneered the launch of Unit Linked Life Insurance plans amongst the private players in
India. It was the first player in the industry to sell its policies through the Bancassurance
route and through the Internet. It was the first private sector player to introduce a Pure
Term plan in the Indian market. BSLI has covered more than 2 million lives since it
commenced operations. And its customer base is is spread across more than 1500 towns
and cities in India. The company has a capital base of Rs. 1274.5 crores as on 31st March
2008.
With an experience of over 9 years, BSLI has contributed significantly to the growth and
development of the life insurance industry in India and currently ranks amongst the top 5
private

life

insurance

companies

in

the

country.

Known for its innovation and creating industry benchmarks, BSLI has several firsts to its
credit. It was the first Indian Insurance Company to introduce Free Look Period and the
same was made mandatory by IRDA for all other life insurance companies. Additionally,
BSLI pioneered the launch of Unit Linked Life Insurance plans amongst the private
players in India. To establish credibility and further transparency, BSLI also enjoys the
prestige to be the originator of practice to disclose portfolio on monthly basis. These
category development initiatives have helped BSLI be closer to its policy holders
expectations, which gets further accentuated by the complete bouquet of insurance
products (viz. pure term plan, life stage products, health plan and retirement plan) that the
company

offers.

Add to this, the extensive reach through its network of 600 branches and 1,75, 000
empanelled advisors. This impressive combination of domain expertise, product range,
reach and ears on ground, helped BSLI cover more than 2 million lives since it
22

commenced operations and establish a customer base spread across more than 1500 towns
and cities in India. To ensure that our customers have an impeccable experience, BSLI has
ensured that it has lowest outstanding claims ratio of 0.00% for FY 2008-09. Additionally,
BSLI has the best Turn around Time according to LOMA on all claims Parameters. Such
services are well supported by sound financials that the Company has. The AUM of BSLI
stood at Rs. 8165 crs as on February 28, 2009, while as on March 31, 2009, the
company has a robust capital base of Rs. 2000 crs.

23

Achievements of BSLI
1st to introduce ULIP fund options.
1st to launch illustrations so that customers understand the products better before
they buy.
1st to issue NAVs of funds for better transparency.
1st to disclose portfolio on a monthly basis.
1st to introduce Free Look Period and the same was made mandatory by IRDA for
all other Life Insurance Companies.

24

25

SWOT ANALYSIS OF BSLI

STRENGTH:
Multi-channel distribution and one of the largest distribution
networks in India.
1 Million Policies sold within 3 and half years.
Training process of the company is very strong.
According to the change in surrounding environment like changes in
customer requirement.

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

26

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

THREATS:
OLD HABITS DIE HARD: Its still difficult task to win the confidence of
public towards private company.
The company is facing major threats from LIC etc. -which is an
government company.

27

 Plans for all income groups are not available which can create adverse effect later
on the market share of the company.MAJOR COMPETITOR AT A

GLANCE LIC (LIFE INSURACE CORPORATION)

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term contracts
and during the currency of the policy it requires a variety of services need was felt in the
later years to expand the operations and place a branch office at each district headquarter.
re-organization of LIC took place and large numbers of new branch offices were opened.
As a result of re-organisation servicing functions were transferred to the branches, and
branches were made accounting units. It worked wonders with the performance of the
corporation. It may be seen that from about 200.00 crores of New Business in 1957 the
corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years
for LIC to cross 2000.00 crore mark of new business. But with re-organisation happening
in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on
new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional
offices, 7 zonal offices and the Corporate office. LICs Wide Area Network covers 100
divisional offices and connects all the branches through a Metro Area Network. LIC has
tied up with some Banks and Service providers to offer on-line premium collection facility
in selected cities. LICs ECS and ATM premium payment facility is an addition to
customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been
commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New
Delhi, Pune and many other cities. With a vision of providing easy access to its
policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices
are smaller, leaner and closer to the customer. The digitalized records of the satellite
offices will facilitate anywhere servicing and many other conveniences in the future.
28

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past records.
LIC has issued over one crore policies during the current year. It has crossed
milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth
rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business.

Birla Sun Life Insurance Co. Ltd

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

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

3. Birla Sun Life Insurance Guaranteed Bachat Plan - Its an non participating
endowment plan offers you guaranteed returns and chance to earn survival benefit from
the 3rd year onwards. You can withdraw this benefit each tear or can use it as to pay
the premium dues.

29

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

5. Birla Sun Life Insurance Gold-Plus II - Its an investment plan offering ninefunding option to choose and 100% equity fund option also. Free unlimited switches
are given to you to manage your investments. This plan offers good liquidity to you.

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

7. Birla Sun Life Insurance Saral Jeevan Plan - In todays fast life its really easy to
buy an insurance plan, which you immediately can purchase just by providing three
health statements to the company. Bsli Saral Jeevan is the best option to go for.

8. Birla Sun Life Insurance Supreme-Life - Its a unit linked non-participating plan
providing 8-fund options to choose. It gives a choice of two death benefits.

9. Birla Sun Life Insurance Dream Plan - Its a unit-linked policy, which provides
you guaranteed returns, 0% allocation charges, and option to double or triple the
guaranteed maturity.
30

10. Birla Sun Life Insurance ClassicLife Premier - It will give you guaranteed
additions in the form of guaranteed units and a good choice of 8 investment funds are
also there. You are free to choose the term period of 10,20,30 or whole life.

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

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

12. Birla Sun Life Insurance PrimeLife Premier - Its a single time investment with
top up options. It keeps you hassle free and provides you guaranteed returns at regular
intervals.

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

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

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

31

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

17. Birla Sun Life Insurance Single Premium Bond - This plan gives you the
opportunity to make one time investment with no medical tests and will also gives you
the facility of high entry age. Its a short term investment plan provides you the option
of 5 years or 10 years term period.

18. Birla Sun Life Insurance Freedom 58 - Its a non- participating ulip plan. It helps
you accumulate your premiums and the investment return there of into a corpus of your
retirement.

19. Birla Sun Life Insurance Flexi Secure Life Retirement Plan II - This will
provide you the option to take a life cover or not. You can choose your retirement age
yourself whether you want to prepone/postpone it.

20. Birla Sun Life Insurance Children's Dream Plan - Its a unit-linked policy,
which provides you guaranteed returns, 0% allocation charges, and option to double or
triple

the

guaranteed

maturity.

32

33

Various Plans offered by LIC are as follows :

Endowment Assurance Plans

1. Jeevan Amrit : This plan is designed for a higher cover at a lower cost. In this plan
premium payment is limited to 3 or 4 or 5 years and the premium payable during the first
year is higher than the premiums payable in subsequent years.
2. New Janaraksha Plan : Is an Endowment Assurance plan that provides financial
protection against death throughout the term of plan. It pays the maturity amount on
survival to the end of the term.
3. Jeevan Mitra(Double Cover Endowment Plan) : Is an endowment plan which takes
care of the financial needs even if death of the policyholder for the whole term of the plan.
4. Jeevan Mitra (Triple Cover Endowment Plan) : Is an endowment plan where thrice
the Sum Assured plus all bonuses on the basic sum assured to date is payable in a lump
sum upon the death of the life assured.
5. The Endowment Assurance Policy : This policy has a provisions for the family of the
Life Assured in event of his early death and also assures a lump sum at a desired age.
6. The Endowment Assurance Policy-Limited Payment : In this policy the payment of
premium can be limited either to a single payment or to a term shorter than the policy.

34

Children Plans

1. Jeevan Anurag : Is plan designed for the children educational requirements . This plan
can be taken on the parents life. The basic sum assured is given immediately on the death
of the life assured during the term of the policy.
2. Jeevan Kishore : Is a plan which can be availed by the parent or grand parents of the
children. It is an endowment assurance plan for children of less than 12 years of age.
3. Jeevan Chhaya : It is a plan where financial protection is given against death during
the term of the plan. It is an Endowment Assurance plan. Besides this benefit one-fourth
of Sum Assured is payable at the end of each of last four years of policy term irrespective
if the life assured dies or survives the duration of the policy.
4. Komal Jeevan : Is a Money Back Plan which can be bought by the parent or grand
parent for their child from the age of 0-10years. This plan gives financial protection
against death during the duration of the plan with periodic payments on survival at
specified durations.
5. Child Future Plan : A policy where the future needs like education, marriage and other
requirements are taken care of. This plan provides a benefit which not only takes care of
the risk cover of the child during the policy but also after 7 years of the policy being
expired.
6. Child Career Plan : A plan to meet the educational and other needs of the child. It
provides the risk cover on the life of child during the policy term as well as 7 years after
the policy has expired. There are also Survival benefits given to the life assured at the end
of a specific duration.
7. Child Fortune Plan : Is a unit linked plan which offers long term capital appreciation.
35

8. Marriage Endowment Or Educational Annuity Plan : This is an Endowment

Assurance plan that provides for benefits on or from the selected maturity date to meet the
Marriage/Educational expenses of the named child.

Money Back Plan

1. Bima Bachat : Is a money-back policy which offers financial security and assurance to
the policy holder and his family. The policy holder has to pay only one premium.
2. Money Back-20 years : Is an endowment plan where periodic payments of partial
survival benefits are paid during the term of the policy till the policy holder is alive.As the
policy name goes this plan 20% of the sum assured is payable after 5,10,15 years and the
balance 40% accrued bonus is payable at the 20th year.
3. Money Back 25 years : Is the same as the above plan only in this plan the 40% accrued
bonus is payable at the 25th year.

Pension plans
1. New Jeevan Dhara - I : is a Deferred Annuity plans that allows the policyholder to
make provision for regular income after the selected term.
2. New Jeevan Suraksha - I : Is a deferred annuity plan.
3. Jeevan Nidhi : Is a deferred annuity plan with profits.
4. Jeevan Akshay - VI : By paying a lump sum amount this immediate annuity plan can
be bought.

Unit Plans

36

1. Child Fortune Plus : Is a plan for children and to meet their educational needs. Its a
unit linked plan with long term capital appreciation.
2. Fortune Plus : It is a unit linked assurance plan where premium payment term (PPT) is
5 years and the premium payable in the first year will be 50% of total premium payable
under the policy.
3. Market Plus : Is a unit linked pension plan where after a specific period the pension is
paid.
4. Money Plus - I : Is a unit linked Endowment plan which has investment plus insurance
during the term and you can pay regular premiums.
5. Profit Plus : It is a unit linked Endowment plan where the premium payment term
(PPT) is limited to single lump sum, or uniformly over 3, 4 or 5 years.

Whole Life Plans

1. Jeevan Anand : Is a combination of two plans- Endowment Assurance and Whole Life
plan.
2. Jeevan Tarang : This is a with-profits whole of life plan which provides for annual
survival benefit at a rate of 5 % of the Sum Assured after the chosen Accumulation
Period.
3. The Whole Life Policy : Is a plan mainly to provide for payment of sum assured plus
bonuses on the death of the policyholder.

Golden Jubliee Plan

37

New Bima Gold : Where the premiums are paid back during the policy term in
installments , besides that life insurance cover is given during the also at the extended
term of the plan.

38

Some main Plans of BSLI:

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

Policy parameters
Entry age

18-70

Minimum annual premium

Rs. 50000

Minimum sum assured

5*annual premium

Policy term

10 years

Premium paying term

3 years

Premium and sum assured

You can pay your policy premium annually, half-yearly, quarterly or monthly, subject to a
minimum installment premium of:
Rs. 50,000 per annum
Rs. 25,000 half-yearly
Rs. 15,000 quarterly; or
Rs. 10,000 per month (3 monthly installments required at issue)
You choose your Sum Assured (minimum 5 x annual premium).
Risk profile
39

 0-40% in money market & cash

0-100% in debt instruments & derivatives
0-100% in equities & equity related securities.

Maturity Benefit
On maturity, your Fund Value will be paid to you.
In addition, we will pay an amount equal to:

the number of units under your policy at that time; times

the excess, if any, of the Guaranteed Maturity Unit Price over the then prevailing
unit price

Death Benefit
In the unfortunate event of the death of the life insured prior to the maturity date of the
policy, we will pay to the nominee the greater of (a) the Fund Value or (b) the Sum
Assured reduced for partial withdrawals as follows:

Before the life insured attains the age of 60, the Sum Assured payable on death
is reduced by partial withdrawals made in the preceding two years.
Once the life insured attains the age of 60, the Sum Assured payable on death is
reduced by all partial withdrawals made from age 58 onwards.

Partial withdraw

40

Partial withdraw

after 3 complete policy years.

Minimum partial withdraw rs.5000

Policy surrender
time.

After 3 policy years and you will get 100% fund value at that

(2) Birla Sun Life Insurance childrens Dream Plan

Policy parameters
Entry Ages

Life Insured (parent): 18 years 60 years

Nominee (child) : 30 days 13 years

Term

18 years less the age of child at entry

Premium paying
frequency

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

quarterly or monthly (for ECS only)

Addition of riders

Accidental Death & Dismemberment Benefit (ADD)

41

The annual policy premium is based on:

The guaranteed maturity benefit and option you choose.
The enhanced sum assured you desire.
The plan term and your gender and age at entry.

Guaranteed Fund Equals all premiums paid, less charges and guaranteed maturity
Value
benefit(s), accumulated at 3% per annum
Partial
Withdrawals

Allowed after 3 complete policy years

Investment Funds Protector, Builder, Enhancer

AT Death
Benefit

The sum assured is paid to the nominee upon the death of the life insured
(parent)
The new life insured is the child and new owner is appointed as per your
wishes.
The policy is continued as usual except:
All riders and risk charges will cease
Only the policy administration charge and fund management charge
continue, and
BSLI will start paying the Maturity Continuation Benefit on a monthly
basis until the policy matures.
In case of death of the new life insured (child) prior to the end of the Term,
higher of 105% of the Fund Value or the Guaranteed Fund Value will be
paid and the policy will be terminated.

Charges of policy
42

 Premium allocation charges

Fund management charges
Mortality charges
Surrender charges etc.

43

(3) Birla Sun Life Insurance Saral Jeevan Plan

The saral jeevan

plan provides the dual benefit of protection and investment. So it is the ideal policy if
you want to secure your life and build wealth at the same time.

Poicy parameters
Entry age

18-55

Policy term

10, 15, and 20 years

Age at maturity

65 or less

Mode of Premium Payment -

Annual, Semi Annual, Quarterly, Monthly.

Maturity Benefit
Maturity benefit will be sum assured plus fund value at the end of maturity time.
Death Benefit Your nominee will receive both sum assured and fund value in the
unfortunate event of death.
Investment Funds
Protector
Builder
Enhancer
Charges of Policy
Premium Allocation Charge- Nil (This means all of your policy premium will be
invested in the investment funds of your choice).
Fund Management Charge
Mortality charges
Surrender charges etc.

44

(4) Birla Sun Life Universal Health PlanThe universal health plan is in addition to the benefit amount payable under each health
benefit. This unique benefit helps you and your family with out of pocket health related
expenses.

Policy parameters
Entry Ages

18 years 65 years

Term

3 years

Premium paying
frequency

policy premiums can be paid yearly, half-yearly, quarterly or

monthly

Premium

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

4756 p.a., for 45- Rs. 6725 p.a., for 55- Rs. 9724 p.a.).

Benefits
1. BSLI pay a fixed benefit amount of Rs. 1000 per day in Hospital plus Rs. 1000 per
day in Intensive Care Unit (ICU).
In case of an admission for surgical management :
2. if the surgery is listed in covered surgeries: BSLI pay a fixed benefit amount based
on the grade of the covered surgery-Rs. 100000, Rs. 50000, Rs. 25000, Rs. 15000
and Rs. 10000 for grade 1(major) to 5(minor) respectively.
3. if the surgery is not listed in the covered surgeries: BSLI pay a fixed benefit amount
of Rs. 2000 per day in hospital plus Rs. 1000 per day in ICU.
Tax benefit

45

The premium paid by you up to 15000 (Rs.20000 for senior citizens) p.a. to insure
yourself and/or your family, is eligible for tax benefit under section 80D of the income
Tax Act, 1961, which is subject to amendments from to time.

Death/Maturity benefit
This plan has no death benefit or maturity benefit. Furthermore, this plan provides for
no cash surrender value nor any policy loans.

(5) Birla Sun Life Retirement plan

Policy parameters
Entry Ages

18 years 80 years

Term
Premium paying
frequency

policy premiums can be paid yearly, half-yearly, quarterly or

monthly

Premium

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

1200)

Benefits
In the unfortunate event of death of the policyholder the nominee will receive the higher
of:
75% of the base premium and all renewal base premiums paid. OR the surrender value at
the time plus all accumulated survival benefits.

Tax benefits

46

Under section 80CCC and 10(10A)

Partially withdraw
You can do partially withdraw min. Rs.5000

47

Some main plans of LIC

(1) Marriage Endowment Or Educational Annuity Plan : This is an
Endowment Assurance plan that provides for benefits on or from the selected maturity
date to meet the Marriage/Educational expenses of the named child.
Entry age

18 (min.)

Sum assured

50000 (min)

Term

5 (min)

Mode of payment

60(max)
no limit (max)
25 (max)

monthly, qtly, half yrly, yly,

FEATURES
The Marriage Endowment/ Educational annuity plan provides a sum assured to be kept
aside for the expenses of marriage or higher education of the policyholder's children.
Premiums payable for selected term or till death of the life Assured. Benefits will be given
only after the selected term.

Maturity benefits
Sum Assured + Bonus
Accident:
Accident benefit equivalent to basic sum assured would be available by paying
appropriate additional premiums in that behalf. An amount equivalent to Sum Assured
become payable immediately.

48

(2) Jeevan saral plan of LIC

Plan Details: This plan is appropriate for employees seeking life cover through Salary
Savings Schemes.
Eligibility:
Minimum

Maximum

Age

12 Yrs (completed)

60 Nearest Birthday

Term

10

35

Age at maturity

Maximum 70 years

In case of term rider, minimum and maximum age of entry will be 18 and 50 years
respectively.

Further

minimum

sum

assured

will

be

Rs.1

lakh.

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

Mode:
yearly, Quarterly

and

Survival

Monthly

under

Salary

Saving

Scheme.
Benefits:

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

Age at

Policy Term

49

Entry
10 yrs

15 yrs

20 yrs

25 yrs

20

11,156

19,628

28,039

36,839

40

10,431

17,839

24,598

30,854

50

8,442

13,444

16,164

Death

Benefits:

Under this plan death cover will be same irrespective of age at entry and term. On death
the nominee will receive 250 times the monthly premium, plus return of premiums
excluding extra/rider premium premium.

(3) New Jeevan Suraksha Plan

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

50

POLICY PARAMETERS

Min

Max

Entry Age

18

70

vesting age

50

79

deferment period

2 years

Premium
Mode of payment

35 years.

Rs. 250 p.m.

Yearly, half yearly,
quarterly, monthly

Features

AMOUNT (Rs)

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

>=2,00,000 <
5,00,000

>= 5,00,000

Rebates Available for

Single Premium

3%

4%

5%

Rebates Available for

Annual Premium

6%

7%

8%

51

Death Benefits
If death occurs within 10 years -

3% (interest on all premium given)

Between 11 to 20 years

4%

After 20 years

5%

(4) LIC's Market plus Plan

It is a unit linked deferred pension plan. The policyholder can choose the plan with or
without risk cover. He can also choose the level of cover within the limits, which will
depend on the mode and amount of premium he/she desires to pay. The allocated premium
will

be

utilized

to

buy

units

as

per

the

selected

fund

type.

The Policyholder's Unit Account will be subject to deduction of charges. Units will be
allotted and cancelled based on the Net Asset Value (NAV) of the respective fund of the
date of allotment / cancellation. There is no Bid-Offer spread (both the Bid price and Offer
price of units will be equal to the NAV). The NAV will be declared on a daily basis and
will be based on the investment performance, Fund Management Charges (FMC) and
whether fund is expanding or contracting under each fund type.

52

Policy parameters
Entry age

18-70

Premium

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

premium
(Max) No limit
Vesting age

40-75

Sum Assured
Rs.

(min) NIL- (when no life cover is opted) Rs. 25,000 for Single premium,

50,000 for Regular premium (When life cover is opted)

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

Minimum Deferment period

5 years

Invesment fund types:

Fund Type

Investment in Govt. /
Govt. Guaranteed
Securities / Corporate
Debt

Short-term investments such as money

market instruments(Including Govt.
Securities & Corporate Debt)

Investment in Listed
Equity Shares

Bond Fund

Not less than 80%

100%

NIL

Not more than 85%

Not less than 15%

and not more than
35%

Not more than 70%

Not less than 30%

and not more than
50%

Not more than 40%

Not less than 60%

and not more than
80%

Secured Fund

Balanced Fund

Growth Fund

Not less than 65%

Not less than 50%

Not less than 20%

COMPARISON BETWEEN SOME MAIN PRODUCTS OF

BSLI AND LIC
53

1) Comparison between BSLIs Children dream plan and LICs Marriage

Endowment Or Educational Annuity Plan:

In BSLI plan policy term is 18 years less the age of child at entry.
But in LIC plan policy term is 5-25 years.
Premium paying frequency is almost same i.e. yearly, half yearly, quarterly,
monthly.

In case of death benefit: in BSLI plan the sum assured is paid to the nominee upon
the death of the life insured (parent). The new life insured is the child and new
owner is appointed as per your wishes.
In LIC plan if death occurs due to accident then basic sum assured is payable on
death immediately and further premiums are not payable.after expiry of the term again
basic sum assured + bonus is payable.
In BSLI fund value is guaranteed.
o In LIC plan fund value is not guaranteed.

54

2) Comparison between BSLIs Saral jeevan plan and LICs Jeevan saral
plan
In BSLI plan entry age is 18-55 years
In LIC plan entry age is 12-60 years
In BSLI policy term is 10, 15, and 20 years.
In LIC policy term is 10-35 years.
In BSLI plan max. Maturity age is 65 years
In LIC plan max. Maturity age is 70 years.
In BSLI min. premium is 10000 p.a.
In LIC plan min. premium is 5000p.a.

55

3) Comparison between BSLIs Retirement plan and LICs New Jeevan

Suraksha plan.
In BSLI plan entry age is 18-80 years
In LIC plan entry age is 18-70 yrs.
In BSLI plan vesting age is 10-40 yrs from entry age (Max. 90yrs.)
In LIC plan vesting age is 50-79 yrs.
In BSLI plan min. premium is 9600 p.a.
In LIC plan min. premium is 3000 p.a.
Premium paying frequency is same i.e yearly, half yearly, quarterly, and monthly

Death Benefits:
In BSLI plan the unfortunate event of death of the policyholder the nominee will
receive the higher of:
75% of the base premium and all renewal base premiums paid. OR the surrender
value at the time plus all accumulated survival benefits.
In LIC plan
If death occurs within 10 years -

3% (interest on all premium given)

Between 11 to 20 years

4%

After 20 years

5%

56

4) Comparison between BSLI Platinum plus plan and LIC Market plus
plan
Entry age in BSLI and LIC is same i.e. 18-70 years.

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

In LIC plan premium is 10000p.a.

In BSLI plan maturity benefit is guaranteed

In LIC plan maturity benefit is not guaranteed

57

Objectives of study
To determine and analyze the Market Potential of the Birla Sun Life Insurance
Company in MOGA City.
To study and determine the competitor (LIC) position in the market.
To analyze market share of Birla Sun Life Insurance products in Moga city.
To analyze the customer satisfaction regarding LIC and BSLI.

58

RESEARCH METHODOLOGYMEANING OF RESEARCH-

Before understanding Research Methodology, we should understand the meaning

of research. Research in common parlance refers to a search for knowledge. One can also
define Research as a scientific and systematic search for pertinence information on a
specific topic. In fact, research is an art of scientific investigation.

DEFINITION OF RESEARCHResearch is a systematized effort to gain new knowledge

Redmann & Mory
MEANING OF RESEARCH METHODOLOGY-

Research Methodology, it is a way to systematically solve the research Problem. It may

be understood as a science of studying how research is done scientifically. In it we study
the various steps that are generally adopted by the researcher in studying his research
problem along with the logic behind them. It is necessary for the researcher to know not
only the research.

Data Collection: - The objectives of the project are such that both primary and secondary
data is required to achieve them. So both primary and secondary data was used for the
project. The mode of collecting primary data is questionnaire mode and sources of
secondary data are various magazines, books, newspapers, & websites etc.
Primary data
59

The primary data are those data which are collected afresh and for the first time, and thus
happen to be original in character.
Secondary data
The secondary data on the other hand, are those which have already been collected by
someone else and which have already been passing through the statistical process.
Sample size
100 people of MOGA City were selected
Research ----- Purposive research

60

61

1) Do you

think that investment in Insurance sector is good option?

Particulars

No. of respondents

Yes

90

No

10

Interpretation: 90 people say that investment in insurance sector is good option and 10
are saying not.

62

2) Which companys policy do you have?

Particulars

No. of respondents

BSLI

40

LIC

60

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

63

3) Which type of policy you have?

Particulars

No. of
respondents
LIC

No. of
respondents
BSLI

Whole life plan

20

10

Retirement plan

10

Children plan

18

22

Health plan

Golden jubilee plan

Total

60

40

Interpretation: 20 people of LIC and 10 of Birla have whole life plan, 18 people of LIC and

64

22 of birla have

4) What percentage of interest you get from it?

Particulars

No. of
respondents
LIC

No. of
respondents
BSLI

Below 5 %

5-8 %

14

8-12 %

42

28

Above12 %

Interpretation: 14 people of LIC and 6 of Birla are getting 5-8% R.O.I., 42 people of LIC
and 28 of Birla are getting 8-12% interest.

65

5) Why do you invest in this(LIC/BSLI) company?

Particulars

No. of respondents
LIC

No. of respondents
BSLI

High interest

12

Good image of CO.

12

Growth of the CO.

18

12

Annual premium is
reasonable

10

Maturity benefits

12

Interpretation: 12 people of Birla are investing in this company due to its high interest,
18 people of LIC say that they are investing in LIC due to growth of the co.

66

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

Particulars

No. of respondents

Yes

44

No

56

No. of respondents

Yes

No

Interpretation: 44 people are saying that investment in BSLI is better than LIC, but 56
are saying no.
(If NO then go to Q.N. 8 otherwise Q.N. 7)

67

7) If yes, then why?

Particulars

No. of respondents

Guaranteed F.V. at maturity

10

Growth rate

16

More ULIP plan

Risk covered

All above

Interpretation: 16 people are saying that because BSLI gives guaranteed F.V. at maturity
time, 8 are saying it has more ULIP plans.

68

8) If no, then why?

Particulars

No. of respondents

LIC have govt. stake

24

Brand loyalty of LIC

14

Low A.P. than BSLI

12

High return

Interpretation: 24 people are saying that investment in LIC is better it has govt. stake, 14
are saying it has brand loyalty.

69

9) When company launch new product , then any information is given to you about
that product?

Particulars

No. of respondents
LIC

No. of respondents
BSLI

Yes

24

16

No

36

24

Interpretation: 24 people of LIC are saying yes and 36 are saying no, 16 people of BSLI
are saying yes and 24 are saying no about providing information.`

67

70

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

Particulars

No. of respondents

Agree

20

Neutral

26

Disagree

14

Cant say

40

Interpretation: 20 people are saying that BSLI will grow in future, 26 are saying it will
be neutral, 40 cant say, and 14 are disagree.

71

Findings

72

 90 people saying that investment in insurance sector is good option and 10 are
saying no.
40 people have BSLI policies and 60 have of LIC.
10 people of BSLI have Whole life plan, 4 have retirement plan, 22 have children
plan, 4 have health plan.
56 people are saying that investment in LIC is better than BSLI, 44 are saying
investment in BSLI is better.
Most of the people of both LIC and BSLI are getting rate of interest 8-12%
Most of the people have children plan of BSLI.
Most of the people invest due to high interest of the policy in BSLI
People have more faith in govt. Companies than the private.
14 people invest in LIC due to its brand loyalty.
26 people saying that BSLI growth will be neutral in near future.

73

SUGGESTIONS

74

1) Information regarding new product should be provided to the customers.

2) The company should find out the no. of people who are not having any of the
insurance plans through an intensive market research and motivate them to get insured.
3) At some level Company should provide information to the customers about the
charges of the policy.
4) Company should target each and every class of the society.
5) Charges should be low of the policies.
6) Annual premium should be reasonable.
7) BSLI Company should work in systematic way.

75

LIMITATIONS

76

 Some of the respondents were not cooperative.

There are chances of biased information provided by the respondents.

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

there cant be full accuracy.
The time was limited.
Area was limited.

77

Conclusion
78

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

79

Bibliography
80

 www.birlasunlife.com
www.licindia.com
www.google.com
Newspapers

81

82

ANNEXURE
NOTE: The information that you will provide will be kept confidential and will be
used only for academic Purpose.
Our questionnaire will be to those persons who have plans of BSLI or LIC.

GENERAL

Name
__________________________________________________________________
Addres_____________________________________________________________
____
Gender_________Age________ContactNo._______________________________
___

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

(a) Yes

(b) No

2. Which companys policy do you have?

(a) Birla Sun Life Insurance

(b) LIC

83

3. Which type of policy you have?

(a)Whole Life Plan

(b) Retirement Plan

(c) Children Plan

(d) Health Plan

(e) Golden jubilee plan

(f) any other please specify___________________

4. What percentage of interest you get from it?

(a) Below 5%

(b) 5-8%

(c) 8-12%

(d) Above 12%

5. Why do you invest in this company?

(a) High interest

(b) good image

(d) Annual premium is reasonable

(c) Company growth

(e) due to maturity benefits

(f) Any other please specify ______________________________

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

(b) No

( If your answer is no then jump to question no. 8)

7. if yes then why?
(a) Because BSLI gives guaranteed fund value at maturity time
(b) Growth rate of company is high

(c) BSLI has more ULIP plans than LIC

(d) Risk factor is covered properly

(e) all above

(f) Any other (please specify)_____________

8. If no then why?
(a) Because LIC is having government stake.

(b) Brand loyalty of LIC

84

(c) It has low premium plans than BSLI

(d) Investment return is higher than

BSLI
(e) Any other (please specify)__________________________
9. Whenever company launch new product, then any information is given to you about
that product?
(a) Yes

(b) No

10. In near future BSLI is having high growth rate.

(a) Agree

(b) neutral

(c) disagree

(d) cant say

Any suggestions __________________________________________________

THANKS

85

Premium Invested: Collected Premium is invested in three Investment Fund Options.

These funds are:
1. Protector
2. Builder
3. Enhancer

86