PROJECT

ON
“BIRLA SUN LIFE INSURANCE”

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 TITLE Page
No
1. INTRODUCTION 3

2. ORGANISATION STRUCTURE 17

3. PRODUCTS AND SERVICES OF 21

ORGANISATION

4. DISTRIBUTION NETWORK 29

5. PRICING POLICY OF THE COMPANY 33

6. AWARDS AND ACHIEVEMENT 36

7. SWOT ANALYSIS 39

8. CONCLUSION 43

9. BIBLOGRAPHY 45

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3
1. INTRODUCTION:

BRIEF HISTORY OF UNIT- LINKED INSURANCE: The “unit

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

The credit of introducing the first unit linked plan goes to UTI when
they brought out the Unit linked life insurance (ULIP) in 1971,In 1989
LIC Mutual Fund introduced the ‘DhanRaksha’ Plan identified to the
ULIP. The term of the policy in either 10 or 15 years. With the effect
from 1-7-02 the target amount under these two schemes has been
introduced to Rs. 2 lakhs from Rs.75, 000.it works like this: from the
uniform contribution for each year (for example @Rs.20,000 for ten
years) a small portion is used to buy term death cover for Rs.2 lakhs
and the balance is invested in units and at the end of ten years the

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accumulations made in your account is given as the maturity benefit
along with a 5 or7.5% bonus. There is some restriction in full death
cover in the first two years. After two years the full death benefit will
be paid equal to the target amount. a free accident cover is also given
for Rs.50,000. From April 2000 this plan is made NAV driven and UTI
has made several beneficial changes. In fact, these plans are considered
to be the cheapest insurance with good returns! As life insurance people
are not making these plans, they are not very popular in large numbers.

The concept involved in these unit or equity –linked policies is that as

the major part of your premium amounts paid over a period of years is
invested in equities and other capital market instruments year after year,
the return when it comes will not be affected very much by inflation as
it happens in a maturity value of the policy in any average life
insurance policy for the same period. Of course, the insulation against
inflation is the insulation against inflation is subject to the usual
investment risks and the investments performing reasonably well.

The idea of linking insurance benefits to the performance of units was

first tried for annuities. The annuity benefit was for a fixed number of
units, the value of which depended upon the market value of a portfolio
of equity assets. The teachers insurance and annuity association in USA
first introduced this method in 1952 to pay the annuities in
collaboration with the college retirement equity fund. The insurance

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companies could not follow this method to extend the benefit to the
general public due to legal obstacles and funding problems till 1964. In
1959 the US supreme court ruled that such insures will be subject to the
regulation of securities and exchange commission (SEC) only in 1964
the SEC permitted insurance companies to introduce such annuities.

Each groundwork for successfully operating unit-linked life insurance

policies was first made in Holland, Netherlands, Canada and UK.

However, life insurance contracts linking to the performance of units

came only in 1976 in USA. The SEC ruled that life insurance contracts
with an equity base would be subject to the securities act of 1933-34
and investment company act 1940. The agents selling such policies
were also to take special licenses.

While it is called “Unit- linked life insurance policy” inUK it is called

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

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Basically, in USA, it offers the life insurance coverage combined with a
tax- differed investment feature. Your premium payment are spent on
three things:

1) The cost of the life insurance;

2) Various insurance company fees-including sales charges which are
deducted from each premium payment and
3) Your tax –deferred investment account, whatever amount is left after
the first two goes into the third. And the amount is probably a lot less
than you would hope. There are stringent regulations on selling these
policies in other countries.

For example, in USA, since the variable life insurance products

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

As a security, variable insurance products are regulated by the

securities &exchange commission, which brings out a new set of agent
requirements dealing, primarily with full and fair disclosure laws. For

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example, any sales presentation or illustration must be preceded by or
accompanied by a prospectus approved by the SEC. all materials used
in selling and the SEC must also approve promoting these product prior
to use.

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

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BRIEF HISTORY OF BIRLA SUN LIFE INSURANCE
COMPANY LTD.:

A joint venture between the Aditya Birla Group and Sun life Financial,
Birla sun life insurance forayed into the life insurance and retirement
planning business by pioneering the unique unit-linked solutions in
India. In just over 2 years of its launch, the company has catapulted to
second position in new business premium in the highly competitive
private life insurance industry based on its strategy of unit-linked plans.

THE ADITYA BIRLA GROUP: “Aditya Birla”, a name that evokes

all that is positive in business and life. It typifies integrity, quality,
performance, innovation, perfection and above all, character.

In operation for over 50 years now, the Aditya Birla Group is one of
India’s largest business houses. A highly respected and admired group,
rooted in performance ethics based on value creation for its multiple
stakeholders. The Aditya Birla Group’s operations span over 40 units
across 18 countries, anchored by a 72,000 strong committed workforce,
a group turnover exceeding Rs.27, 000 crore, an asset base which
exceeds Rs.20, 000 crore and a market capitalization of over Rs.13, 000
crore spread over 7 lac shareholders. Known for its rack solid
fundamentals it nurtures a culture where success does not come in the

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way of the need to keep learning afresh to continue innovating and to
carry on experimenting.

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

In India, the group is the single largest producer of viscose filament

yarn, aluminum, white cement and the third largest in grey cement. Not
to mention, the recognition of being the market leader in the ready to
wear branded apparel segment with brands like Allen solly, Louis
Phillip, van heusen and peter England.

The flagship companies of the Aditya Birla Group include some of the
largest and most respected companies in India such as grasim industries
limited, Hindalco industries limited, Indian Aluminum Company
limited, Indian Rayan Industries Limited, Indo Gulf Corporation
Limited. The Group has larged power relationship with large
corporations like Hindustan Petroleum, Tata, Powergen Plc and AT&T.

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

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

SUN LIFE FINANCIAL: Sun life financial is a leading international

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

In March of 2000, Sun life financial services of Canada, inc, Sun life
financier’s parent company, listed its shares on stock markets in
Toronto, New York, London, and Philippines. This new access to

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shareholders equity provides Sun life financial with even greater
opportunities to grow around the world.

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

Sun life assurance Company of Canada, sun life financier’s primary

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

VISION: To be a world-class of financial security to individuals and

corporate and to be amongst the top three private sector life insurance
companies in India.

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 MISSION: To be the first preference of our customers by providing
innovative need based life insurance and retirement solutions to
individual as well as corporate. Well –trained professionals through a
multi channel distribution network and superior technology will make
these solutions available.

Our endeavor will be to provide constant value addition to customers

throughout their relationship with us, within the regulatory framework.
We will provide career development opportunities to our employees
and the highest possible returns to our shareholders.

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

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

1. PROSPECTS FOR GROWTH WITH UNDERLYING GURANTEES:

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

2. GUARANTEES PROVIDE SAFETY NET: The policyholders enjoy the

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

3. CONVENIENCE IN PAYMENT OF PREMIUMS: The customer has the

option of paying any amount of premium, any number of times (within

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 a policy year) irrespective of the mode. Traditional products available
in the market do not offer such a facility.

4. BUILT-IN GUARD AGAINST UNITENDED LAPSATION: These products

provide continuity of risk coverage for a long time even if the
premiums remain unpaid. The continuity of risk is ensured with the
help of monthly recovery of cost of insurance and automatic premium
advance facility. A policy can lapse if and only if the policy fund
pertaining to the individual policy becomes negative.

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

6. ACCELERATED PAYMENT OF PREMIUM POSSIBLE: Depending on

one’s financial situation a shorter premium-paying period can be
selected, with the advantage of greater accumulation resulting into
higher death/surrender/withdrawals/ maturity benefits.

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

8. NO PENALTY FOR SURRENDER: Unlike in traditional type of life

insurance policies where the policy holders have to suffer a financial
loss on surrender of their policies, our products do not provide any
surrender charge after the first four years.

9. CUSTOMERS CAN SEE THEIR MONEY PERFORM: Our policyholders

are provided with an access code to know the policy values online.
Besides, the investment performance of the various options is published
every quarter and the policyholders receive a yearly statement
reflecting the status of the policy fund.

10. OTHER BENEFITS:

a. Lower premium for female customers
b. ‘Age last birthday’ gives the customers advantage of lower age
c. A policy can be customized to the policyholder’s requirements.
For instance our ‘Flexi life line’ with the facility of limited
premium payments and withdrawals thereafter, becomes a
veritable pension plan with attendant tax benefits.

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d. Detailed illustration at the point of sale

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

BSLI abides by the corporate governance framework in accordance with

the Kumar Managalam Birla committee as applicable to the life insurance
business, as well as the provisions of the insurance act, 1938, the
companies act, 1956 and the IRDA regulations.

The various committees overseeing the business are:

BOARD OF DIRECTORS
• Mr. Donald Stewart- chairman
• Mr. Kumar Mangalam Birla
• Mr. Gary M. Come ford
• Mr. Douglas C. Hence
• Mr. S.K. Mitra
• Mr. B.N.Purankmalka

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• Hish Highless Maharaja G.Singh
• Mr. S.N. Talwar
• Mr. G.P. Gupta

AUDIT COMMITEE

• Mr. B.N. Puranmalka

• Mr. S.K. Mitra
• Mr. D.C. Henck
• Mr. G.M. Cmerford

INVESTMENT COMMITEE

• Mr. S.k. mitra

• Mr. B.N. Puranmalka
• Mr. P.J. Akers
• Mrs.K.Gupta
• Mr. A. Fenn
• Mr. N.B. Javeri
• Mr. S.Shah

EXECUTIVE COMMITTEE

• Mr. G.M. Comeford

• Mr. D.C. Heck

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 • Mr. S.K.Mitra
• Mr. B.N. Puranmalka
•

THE BSLI MANAGEMENT TEAM

Mr. Nani Javeri

(CEO)

Mr. Peter Akers

(CFO and appointed actuary)

Mr. E.N.Goveia Mr.

P.Nandagopal
(Senior vice president –direct sales force) (Senior vice president-alternative
Channel and group life)

Anjana Grewal Jaskirat Kaur Snehal

Shah K.S.Gopalkirshnan
(marketing &comm.) (group life &personal) (control & admin.) (actuary)

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 Mr. K.H. Venkatachalam (chief manager-human

resource)

Mr. Mayank Braganaza (chief manager- finance and

planning) Mr. Sanjay Parikh (chief manager- product

development)

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3. BRIEF PROFILE OF SEVICES OF ORGANISATION:

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

Birla sun life insurance provides individual as well as group life

insurance solutions aimed at the corporate sector.

INDIVIDUAL LIFE PLANS: Birla sun life insurance offers number

of individual life plans, which can be given below-

FLEXI SECURELIFE RETIREMENT PLAN: This is a unit-linked

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

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

FLEXI SAVE PLUS ENDOWMENT P LAN: It is a flexible life

insurance plan, which offers the dual benefit of a life insurance cover as
well as large tax-free savings in the long term. The plan is taken for a
specified period and the benefits are payable in the events of death
during the tenure of the plan or at maturity. The unit-linked nature of
the plan coupled with the benefits of compounding can lead to very
efficient returns in the long term.

FLEXI CAH FLOW MONEY BACK PLAN: It is a flexible life

insurance plan, which offers a life insurance cover and gives lump sum
payment at periodic intervals. These periodic payments intervals. These
periodic payments help you meet your various financial obligations at
crucial junctures such as education or marriage of your child. The unit-
linked plan also offers you the option of not withdrawing the lump sum

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amounts and continuing it in the plan to take advantage of the benefits
of compounding.

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

BIRLA SUN LIFE PREMIUM BACK TERM PLAN: The plan

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

GROUP PLANS: Birla sun life insurance Company offers number of

group plans, which can be, described below-

GROUP GRATUITY SOLUTIONS: It works for your future group

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

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

GROUP PROTECTION PLAN: Birla sun life insurance provides

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

AREAS OF EXCELLENCE: Drawing from the strength of the

joint venture partners. The aditya Birla group and sun life
financial inc. the team of Birla sun life insurance has
crossed several milestones of excellence.
 Leadership in unit-linked plans- 95% of sales come through unit-
linked plans. The company is one of the largest sellers of unit-linked

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 plans in one of the fastest growing life insurance markets in the
world.
 The company is a p pioneer in introducing unique product features
like a ‘free look period’ and best sales practices such as the use of
“sales illustrations”. The regulator has now introduced the ‘free look
period’ as an industry norm. The mandatory use of a sales
illustration within BSLI set up a standard of transparency in the
industry.
 A high persistency ratio of 95.46% by premium.
 BSLI has consistently recorded the highest average sum assured of
Rs.3, 26,000 and average premium of Rs.19,500 per policy in the
industry with a unit-linked product range.
 A very efficient utilization of capital.
 Low claims ratio of 0.06% of total policies.
 The first advisor to qualify to the “top of the table” (TOT) amongst
all private life insurance companies.

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

During the year 2003-04, the BSE sensex has gone up by 81% but the
first quarter of year 2004 was not very exciting for the market except for
a huge supply of PSU IPOs. In March 2004, the markets have been
choppy and combined with the upcoming elections. This has caused
some amount of investor uncertainty. After a continuous rise between
may 2003 and January 2004, the quarter saw a correction in the market.
The BSE sensex went up to an all time high in January 2004 and the
quarter closed at 5590.60 down almost 4% from December 2003 level.
There was a large supply of IPOs by PSUs, which met with a good
response. The fundamentals remained good and foreign institutional
investors (FIIS) continued buying even though the markets declined. The
GDP growth numbers has also been encouraging at 10.4% in October –
December 2003 quarter.

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The interest rates remained range bound in the quarter with some amount
of volatility. The 10- year benchmark G-sec closed at 5.15% at the end of
the quarter.

The rupee strengthened further to close the quarter at 43.60/ US $ against

Rs.45.61 at the end of December quarter and Rs.47.50 a year ago. Forex
reserves have crossed $ 110 bn in March 2004 on the back of strong
growth in FDI and FII inflows.

We will continue to invest in diversified and quality portfolio with a

long-term view.

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4. DISTRIBUTION NETWORK

BIRLA SUN LIFE INSURANCE COMPANY LTD, distribution

strategy is aimed at creating a national presence through a scaleable
model, which would achieve convenience, accessibility and quality
service for the customers.

DIRECT SALES FORCE: Through this channel, the company sets up

brick and mortar branches on a standardizes template, across the country
selling life insurance though trained career agents called ‘insurance
advisor’. The team of agency managers and advisors are geared for
productivity enhancement national presence in 44branches and
9development centers.

ALTERNATE CHANNELS: The experience in various countries for

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

The successful business models for banassurance, corporate agency,

brokerage, affinity group and direct marketing are being consolidated.

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use of the call center and the internet will continue to be part of the
direct marketing initiatives .with a winning multi-channel distribution
system in place ,BSLI alternate channels are frontrunners in
bancassurance business, in partnership with Citibank ,Deutsche
bank,Bankof Rajasthan,BankMuscat,Catholic Syrian Bank, Development
credit bank and IDBI Bank.

OUP INSURANCE: The selling of insurance to corporate and affinity

groups is developed though dedicated relationship managers. The
business focus is on the Aditya birla group companies and the top
corporate in India.

Through this channel, the company has established relationships with

more than 100 blue chips corporate across the country by providing
group protection and group retirement solution. The company has
achieved leadership position in-group business in private life insurance
position in providing fund management services for the group retirement
plans.

DISTRIBUTION IN TUNE WITH TECHNOLOGY: Technology

plays the crucial role, when distribution spans across more than 50
locations .the IT strategy revolves around selecting and implementing
critical business applications to support contemporary products like
universal life and aligning process to provide world-class customer

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services. The systems are web enabled and equipped to provide
consistent information across all touch points (branches, callcenters
website etc.). A high quality wide area network (WAN) was set up to
interconnect all branches and the headquarters at mumbai.

TRANNING TO SUPPORT DISTRIBUTION: In keeping with

support throughout the country. Birla sun life insurance’s mission of
providing life insurance solutions though “well trained” professionals,
our tanning team has geared up to meet the challenge. We have a team of
qualified professionals to provide the crucial support throughout the
country.

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5. PRICING POLICY OF THE COMPANY:

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

ELECTRONIC CLEARING SERVICE (ECS): The ECS is a convenient

and hassle- free method of paying premiums through an electronic debit

to your bank account.

FEES AND CHARGES: The policy loading fee* is an up-front charge

and varies as per the premium payment mode and the policy year

CHARGES:

Charges towards the cost of insurance will be deducted by cancellation

of units at the prevailing unit price on a monthly basis. The annual
insurance charges per thousand-face amount for sample ages for
healthy lives

FUND SWITICHING CHARGES:

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

SURRENDER CHARGES: The surrender charges is levied in the

first four years and varies based on the year in which the policy is

35
surrender. During the first 24 months of the policy, the charge will be
an amount equal to the annulled premium payable for this policy .for
the purpose of surrender charge only, annualilsed premium is defined
as the amount that is payable if the coverage paying period is equal to
the coverage benefit period. In the 25th month, the surrender charge is
24 percent of the annualized premium. The surrender charge percent
reduces by one for e very month thereafter. If the policy is
surrendered at any time after the 49th month, the surrender charge is
zero.

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

FEES AND CHARGES: The policy loading fee* is an up-front

charge and varies as per the premium payment mode and the policy
year .

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Birla Sun Life Insurance Company Ltd. (BSLI) won the prestigious ‘Good
Corporate Citizen Award’ from Bombay Chamber of Commerce and Industry
for the year 2009-10 under the category of ‘Banking and Financial
Institutions.

ICAI Awards for Excellence in Financial Reporting, Awarded a Silver Shield

in the Insurance category by the Institute of Chartered Accountants of India
(ICAI) for the financial year ended 31st March, 2009

Recruiting and Staffing Best in Class Awards.

Outlook Money Awards 2004 BSLI - Best Life Insurer (Runner Up) 2004
TROPHY.

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Outlook Money Awards 2004 BSLI - Best Life Insurer (Runner Up) 2004
CERTIFICATE.

The 8th Asia Insurance Industry Awards 2004 - Birla Sun Life Insurance was
among the top five nominees in the category.

The Indo-Canadian Business Chamber- BSLI awarded for its 'Successful

Performance' for 4 years April 2005.

Birla Sun Life Insurance was presented 'The Hewitt Best Employers In India
Awards 2004' Trophy.
.

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7 SWOT ANALYSIS:
SWOT analysis of this company is given below-

7.1 STRENGTHS: Strength of this company is given below-

7.1.1 There is transparency in the scheme. The performance of the fund can
be monitored on daily or bi-weekly basis through the daily- declared
NAV/ Unit prices and also through the website of the company. At
any given time you will k now the accumulations under your policy
due to the investment accruals.
7.1.2 Normally any time after one to three years time depending upon the
scheme, you can chose to withdraw your money by partial or
complete surrender of units. The death benefit will be proportionately
reduced.
7.1.3 You can surrender the policy and get a guaranteed surrender value.
7.1.4 You can also take a loan on a policy after three years duration.
7.1.5 You can switch from one stream of investment to the other every year
by paying a small fee according to your changing needs.
7.1.6 You can top up your premium anytime during the term to increase your
benefits.
7.1.7 The plans are available as endowment whole life money back or as
pension plans.
7.1.8 In fact some companies allow you to have the contract as long as you
want without a fixed term, even up to death.

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7.1.9 The option of with or without profits is also available in some plans.
Actually some companies give a guaranteed bonus as a percentage of
the sum assured as bonus
7.1.10The normal riders such as accident benefit, disability benefit critical
illness or major surgical assistance covers are also available.
7.1.11The policies are issued with the usual “free-look” provision.
7.1.12One company has floated a unit-linked policy for women with a critical
rider benefit specifically covering some gynecological illnesses.
7.1.13You can buy the policy with a single premium like a bond or pay
premium by the usual yearly, half-yearly or quarterly mode.
7.1.14Some companies offer even “premium holiday option”. If after paying
premiums for three years you are not able to pay the premium, the
policy will be continued adjusting the overdue premiums from your
unit fund.

7.2WEAKNESS: Weakness of this company is given below-

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

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 7.3OPPORTUNITIES: Opportunities of this company is given below-

7.3.1 If unit-linked policies can be given section 88 benefits there is a valid

reason that investment in an ordinary mutual fund should also be
given the same benefit, as they are basically same except for the
addition of insurance element in the unit-linked policy.
7.3.2 The rear end tax-free benefit is a very attractive tax break for the unit-
linked policy as per the current tax laws.
7.3.3 The return by way of capital appreciation in mutual fund as well as
from the sale of stocks are taxed as capital gains with the indexation
benefit, according to the current tax laws. Only the dividends are tax-
free.

7.4THREATS: Threats of this company is given below-

7.4.1 This is company is also suffered by the great market competition. There
are number of competitors of this company.
7.4.2 Another threat of this company is that the changing environment.
Changing environment means change in government, change in
government policy, change is competitor’s policy.

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8. CONCLUSION:

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

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

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 9. BIBLIOGRAPHY

NEWS PAPER- THE TIMES OF NEW INDIA, HINDUSTAN

TIMES, ECONOMICS TIMES, BUSINESS --
STANDARD.

WEB-SITE- www.birlasunlife.com , www.google.com

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