COMPARATIVE MARKETING STUDY OF BIRLA SUN LIFE INSURANCE WITH OTHER INSURANCE COM

PANIES
INTRODUCTION
The evaluation of insurance dates back as early as the commencement of trade bet
ween two countries in England, especially between the European countries. During
the transportation of goods, there were chances of the ship being drowned in th
e rough sea conditions or attacked by the pirates, leading to a huge loss to the
party sending the goods. The traders of England devised a way whereby the loss
of goods would be compensated by every trader putting in some amount as per thei
r financial strength so that a single party may not be the loser. This is the ea
rlier concept of insurance. This concept is taking shape for the last 300 years,
yet in India the first insurance company was established in 1818 with the adven
t of Europeans widows. The name of the company was Oriental Life Insurance Compa
ny.
With largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It’s a business growing at the rate of
15-20 per cent annually and presently is of the order of Rs 450 billion. Togethe
r with banking services, it adds about 7 per cent to the country’s GDP. Gross prem
ium collection is nearly 2 per cent of GDP and funds available with LIC for inve
stments are 8 per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover whi
le health insurance and non-life insurance continues to be below international s
tandards. And this part of the population is also subject to weak social securit
y and pension systems with hardly any old age income security. This itself is an
indicator that growth potential for the insurance sector is immense.
A well-developed and evolved insurance sector is needed for economic development
as it provides long term funds for infrastructure development and at the same t
ime strengthens the risk taking ability. It is estimated that over the next ten
years India would require investments of the order of one trillion US dollar. Th
e Insurance sector, to some extent, can enable investments in infrastructure dev
elopment to sustain economic growth of the country.
Insurance is a federal subject in India. There are two legislations that govern
the sector- The Insurance Act- 1938 and the IRDA Act- 1999. The insurance sector
in India has come a full circle from being an open competitive market to nation
alization and back to a liberalized market again. Tracing the developments in th
e Indian insurance sector reveals the 360 degree turn witnessed over a period of
almost two centuries.
Insurance:
Insurance is a mechanism that ensures an individual to thrive on adverse consequ
ences by compensating the individual, his/her loss financially. Every individual
in the world and all activities connected with him/her, be it life, profession,
business, travel or any other pursuits are subject to unforeseen and uncalled f
or hazards or dangers. The benefit that an individual enjoys in his life by owni
ng a car or a house or a factory can be snatched by sudden accident which can re
nder even the individual immobile, and his family vulnerable. At this critical j
uncture, only insurance helps him not only to survive but recover his loss and c
ontinue his life in a normal manner, which would otherwise be unthinkable.
The concept of insurance is quite simple. People, who are in similar trade and a
re exposed to the same risks, congregate and some to an agreement that if any in
dividual member suffers a loss, then the loss will be shared by others and minim
ized in order to enable the individual member recover from the loss and cover hi
s ground. Similarly the different kinds of risks can be identified and separate
groups can be formed to counter such risks and reduce the impact to a manageable
proportion, in which the share could be collected from the members either after
the loss or in advance, at the time of admission to the group. This is an exemp
lary sign of humanity and insurance therefore serves the mankind to a great exte
nt; a point most of the individuals tend to overlook, since monetary aspect is i
nvolved. Now such is for tangible assets.
Life Insurance
The head or the breadwinner of the family generally supports the family for thei
r basic needs, such as, food, clothing and shelter, by bringing income at a regu
lar interval. So long as he or she lives and the income is received steadily, th
e family is secure; but untimely death or disability of that person puts the fam
ily in a very difficult situation, and sometimes in stark poverty. Uncertainly o
f death is inherent in human life.
It is the uncertainty that is the risk, which gives rise to the necessity for so
me from of protection against the financial loss arising from death. Insurance s
ubstitutes this uncertainty by certainty.
The primary purpose of Life Insurance is the protection of the family. Insurance
in its various forms protects against such misfortune by having the losses of t
he unfortunate few paid by the contribution of the many that are exposed to the
same risk. This is the essence of insurance the sharing of losses and substitute
s of certainty for uncertainty.
TYPES OF PLANS OR POLICIES
On the basis of insurance objective, basic plans offered by insurers can be clas
sified under three broad categories: Pure insurance products (term plan), pure i
nvestment products (pension plan) and investment-cum-insurance products (endowme
nt, money-back, whole-life and unit-linked insurance plans). Increasingly, insur
ers are launching hybrid variants of these plain-vanilla plans.
1. Term plan
Term plans are the purest from of insurance. These are no-frills policies that c
over only the risk of your dying. In the event of your death during the policy t
erm, your nominees receive the cover amount---in insurance parlance, the ‘sum assu
red’; you get no benefits if you survive the policy term. Since the entire premium
paid by you ---the cost of buying insurance cover---on term policies goes towar
ds covering the risk of your life, insurers offer you this cover at the least co
st.
2. Endowment plans
While term plans covers just the risk of death, endowment plans also offer some
return on the premium is paid by you. So, if you die during the policy term, you
r nominee gets the sum assured plus some returns; if you survive the policy term
, you still get back the sum assured and returns. As much as this “money if you di
e, money if you live “philosophy is an enticing proposition, it comes at a price;
high premiums, which drag down the returns from endowment plans, to barely 4-6 p
er cent a year. In an endowment plan, you pay premiums for a pre-defined tenure
and sum assured. The premium will depend upon your age, the sum assured, the pla
ns tenure and the nature of returns. A portion of the premium paid by you is inv
ested by the insures on your behalf. Another portion goes towards your cover and
a third towards meeting the insurer’s administrative expenses, which lowers the e
ffective yield on your investment in endowment plans.
3. Money back plans
Money back plans are variant of endowment plans, with one basic difference: unli
ke endowment plans, where the survival benefits are distributed at the end of th
e policy term, the pay back in money –back plans is staggered through the policy t
erm. Typically, a part of the sum assured is returned to you at periodic interva
ls through the policy tenure.
4. Whole-life plan
The three categories of insurance plans mentioned above provide you life cover f
or a defined period, up to a certain age (generally, 70 years), Whole-life plan,
on other hand, provide you cover through your lifetime---the only class of insu
rance policies to do so. Typically, whole-life plan are structured such that the
policyholder has the option to pay premium up to a certain age (referred to as
the ‘maturity age’ which is generally 80-100 years) or for a specified period. On re
aching maturity age, the insurer gives you the option to either continue with th
e cover through the lifetime (for which no further premiums will have to be paid
) or encash the maturity benefits (sum assured plus bonuses). Some insurers do g
ive the option to encash the bonus during the term per it self, which can serve
as a useful income stream during your later years, if you so desire.
5. Unit-linked insurance plans
In insurance-cum investment plans of the kind listed above, you have little say
in where your money is invested. Your insurer too is governed by certain investm
ent restrictions: it can invest just 10 per cent of the premium paid by you in e
quities; the greater chunk of 90 percent has to be invested in debt paper. While
such restrictions are intended to insure safety of your investment, they also l
ead to rigidity in investment are rein in your returns to low single digits. Uni
t-linked insurance plans get around such restrictions, by giving you greater con
trol over where your premium is invested.
Think of them as insurance plans that double as mutual funds. The annual premium
you pay on unit-linked plans is linked to the sum assured and the policy tenure
. You can switch from one plan to another free of cost once a year (a nominal am
ount is charged for additional switches). So, if you think stocks are going chea
p, you can move to the growth plan; or, if you think stocks are overvalued, you
can move your money to the income plan. You can switch from one plan to another
free of cost once a year (a nominal amount is charged for additional switches).
So, if you think stocks are going cheap, you can move to the growth plan; or, if
you think stocks are overvalued, you can move your money to the income plan.
6. Pension plan
Pension plan differ from the five types of the insurance plan mentioned above in
the fundamental way; not all of them of life over. So, why we are talking about
them here
Because pension plan feature among the bevy of products offered by insurers and
are pitched as retirement planning a schemes, similar to other investment-based
insurance plans. Pension plans are investment options that let you set up an inc
ome stream in your post-retirement years by routing your savings through an insu
rer, who invests it on your behalf for a free. The precise returns you will get
depend upon several factors: your age begin when you investing, the contribution
you make, your investment preferences based on your risk profile, the age at wh
ich you want the money to start coming back to you, and the number of years for
which you want the returns.
COMPANY PROFILE
Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the A
ditya Birla Group and Sun Life Financial Inc., a leading international financial
services organisation. The local knowledge of the Aditya Birla Group combined w
ith the expertise of Sun Life Financial Inc., offers a formidable value proposit
ion to customers.
Sun Life Financial and its partners today have operations in key markets worldwi
de, including India, Canada, the United States, the United Kingdom, Hong Kong, P
hilippines, Japan, Indonesia, China and Bermuda. Sun Life Financial Inc. had ass
ets under management of over US$ 446 billion, as on 31 March 2007. Sun Life Fina
ncial Inc. is a leading performer in the life insurance market in Canada.
BSLI in its five successful years of operations has contributed significantly to
the growth and development of the life insurance industry in India. It pioneere
d the launch of Unit Linked Life Insurance plans amongst the private players in
India. It was the first player in the industry to sell its policies through the
Banc assurance route and through the internet. It was also the first private sec
tor player to introduce a pure term plan in the Indian market. This was supporte
d by sales practices, which brought a degree of transparency that was entirely n
ew to the market. The process of getting sales illustrations signed by customers
, offering a free look period on all policies, which are now industry standards
were introduced by BSLI.
Being a customer centric company, BSLI has invested heavily in technology to bui
ld world class processing capabilities. BSLI has covered more than one and a hal
f million lives since inception and its customer base is spread across 100 citie
s in India. All this has assisted the company in cementing its place amongst the
 leaders in the industry in terms of new business premium income.

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 a
mongst Indian conglomerates and Sun Life Financial Inc, leading international fi
nancial services organization from Canada. The local knowledge of the Aditya Bir
la Group combined with the domain expertise of Sun Life Financial Inc., offers a
formidable protection for its customers’ future.
With an experience of over 9 years, BSLI has contributed significantly to the gr
owth 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 firs
ts to its credit. It was the first Indian Insurance Company to introduce “Free Loo
k Period” and the same was made mandatory by IRDA for all other life insurance com
panies. Additionally, BSLI pioneered the launch of Unit Linked Life Insurance pl
ans amongst the private players in India. To establish credibility and further t
ransparency, BSLI also enjoys the prestige to be the originator of practice to d
isclose portfolio on monthly basis. These category development initiatives have
helped BSLI be closer to its policy holders’ expectations, which gets further acce
ntuated 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 1,75,00
0 empanelled advisors. This impressive combination of domain expertise, product
range, reach and ears on ground, helped BSLI cover more than 2 million lives sin
ce 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 0.0
0% 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 financ
ials 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 R
s. 2000 crs.
Vision

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

Mission

To help people mitigate risks of life, accident, health, and money at all stages
and under all circumstances
Enhance the financial future of our customers including enterprises

Values

Integrity
Commitment
Passion
Seamlessness
Speed

A US $28 billion corporation, the Aditya Birla Group is in the league of Fortune
500 worldwide. It is anchored by an extraordinary force of 100,000 employees, b
elonging to 25 different nationalities. The group operates in 25 countries acros
s six continents – truly India s first multinational corporation.
Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG), has a
strong presence across various financial services verticals that include life in
surance, fund management, distribution & wealth management, security based lendi
ng, insurance broking, private equity and retail broking. The seven companies re
presenting ABFSG are Birla Sun Life Insurance Company, Birla Sun Life Asset Mana
gement Company, Aditya Birla Money, Aditya Birla Finance, Birla Insurance Adviso
ry & Broking Services, Aditya Birla Capital Advisors and Apollo Sindhoori Capita
l Investment. In FY 2008-09, the consolidated revenues of ABFSG from these busin
esses crossed Rs. 4763 crores, registering a growth rate of 36%.

Life insurance
No one likes to think about needing life insurance. But including insurance in y
our financial plan now can benefit you and your family in the future.
We offer a range of individual life insurance and group life insurance solutions
. So you can protect your family’s quality of life no matter what the future bring
s, and save your loved ones the stress of financial worries during an already st
ressful time.
Life insurance is an important part of a full financial plan. It’s a crucial compo
nent of estate planning, and can hasten estate settlements. Your beneficiary rec
eives a cash benefit.
Term policies are temporary and provide death benefits only. Permanent policies
accrue a cash value that can offer protection in your later years. The value of
these policies can supplement your retirement income or pay for other unexpected
expenses. Some life insurance policies offer flexible premiums and payouts.
If you’re an employer or a group plan sponsor, offering group life insurance as pa
rt of your benefits package is a great way to attract and retain employees. For
individuals, insurance needs change over time. We offer a variety of individual
life insurance policies to match your stage of life. Individual term life insura
nce, universal life insurance, along with policies that include components such
as critical illness insurance, disability insurance, accident insurance, acciden
tal death and dismemberment insurance.
For individuals
Birla Sun Life offers a wide array of protection and wealth products in India, i
ncluding unit-linked insurance to meet protection, savings and retirement needs
of individuals and their families.
Life insurance protection
Health insurance
Education plans
Riders
Savings plans
Retirement plans
Mutual funds
Asset/portfolio management services
For businesses or groups
Birla Sun Life provides customized solutions to meet the varied needs of organiz
ations and their employees.
Group life insurance protection
Group retirement plans
Asset/portfolio management services
Birla Sun Life Contact information:
Website
www.birlasunlife.com
Head office
Birla Sun Life Insurance Company Limited
One India Bulls Centre, Tower 1, 15th and16th floor,
Jupiter Mill Compound,
841, Senapati Bapat Marg, Elphinstone Road,
Mumbai, India 400 013
Visit the Contact us page on the Birla Sun Life Insurance website for more optio
ns.
General inquiries
Phone: 1-800-270-7000 or
91-22-4356-9000
Mon. to Fri. 9:30 a.m. – 6 p.m.
Email: customerservice@birlasunlife.com
Birla Sun Life Asset Management Company Limited
One India Bulls Centre, Tower 1, 17th Floor,
Jupiter Mill Compound,
841, Senapati Bapat Marg, Elphinstone Road,
Mumbai, India 400 013
Phone: 91-22-4356-8000
Mon. to Fri. 9:30 a.m. – 6 p.m.
BSLI Term Plan
Your BSLI s Term Plan is a low premium, pure risk coverage plan, which takes car
e of your financial commitments and secures your family s future should anything
unfortunate happen to you.
Low Costs, High Cover

This plan provides you all the benefits of life insurance at affordable costs.
Riders

The plan offers three riders at nominal costs– Accidental Death and Dismemberment
Rider, Critical Illness Rider and Waiver of Premium Rider.
Sum Assured Rebates

The plan offers attractive rebate for face value amounts equal to or greater tha
n Rs. 5 Lakh for regular pay. In case of single pay, this rebate is available fo
r amount greater than or equal to Rs. 7 Lakh.
Tax benefits

Investments in this plan are eligible for tax benefits under Sections 80C
and 10(10D) of the Income Tax Act.
More Benefits
• Maturity Benefit - NIL
• Death Benefit - In the event of your unfortunate death, the nominee receives th
e Sum Assured.
• Special benefits for women - The plan offers favourable premium rates for female
clients.
Plan Summary

Entry Age 18 – 55 years

Minimum Face Amount (Sum Assured) Rs. 2,50,000 in case of single premium &
Rs. 2,00,000 in case of regular premium for a person fulfilling the eligibility
criteria

Benefit period As per policy terms 5,10,15,20 or 25 years

Premium Paying Period Single pay or over the duration of the plan

Premium Payment Frequency Annually, semi-annually, quarterly, monthly (thr

ough ECS) or one-time payment

Grace Period Pay your premium within 30 days after the premium due dates

Amount due to nominee in event of death of the life insured Sum Assured

Maturity benefit Nil

Riders Accidental Death and Dismemberment Rider and Critical Illness Rider, Wai
ver of Premium Riders, but only at the time of purchase of policy

Tax Benefits Under Sec 80C and Sec 10(10D) of the Income Tax Act, 1961

Sun Life India Service Centre:

Sun Life India Service Centre Private Limited
Uni-Tech World (Cyber Park)
Sector-39
Ground Floor, Gurgaon
Haryana - 122001
India
Phone: 91-124-4565500
Fax: 91-124-4565501
Email: India_Service_Centre@sunlife.com
Career inquiries
Visit the India Service Centre careers page.
OBJECTIVES OF THE STUDY
The project undertaken shall meet the following objectives:
• To do comparative study of Birla Sun Life Insurance with other insurance compani
es.
• To analyze the awareness of the Birla Sun Life Insurance amongst people.
• To get the overview of the insurance industry.
• To find out the awareness level of the respondents regarding public and private
sector insurance companies.
• To find out the percentage of the population insured and those interested in get
ting insured.
• To analyze the market acceptability of the products of Birla Sun Life Insurance.
RESEARCH METHODOLOGY
Definition: Research methodology is a careful investigation or inquiry in a syst
ematic manner and finding solution to the problem in a research. It includes of
defining and redefining problems formulating hypothesis or researching conclusio
ns to determine whether they fit the formulating hypothesis.
Research design: Research design is an arrangement of conditions for coll
ection and analysis of data in a manner that aims to combine relevance to the re
search purpose with economy in procedure. The research problem have been formula
ted in clear-cut terms, helps the researcher to prepare a research design. The p
reparation of such a design facilitates in conducting research in an efficient m
anner. The function of research design is the collection of relevant evidence w
ith minimal expenditure of efforts, time and money.
Followed research design: The methodology adopted in research is explora
tory in
nature.
Universe: The survey is to be conducted in the area of Ludhiana city.
Sample size: The sample size of 200 has to be taken.
Sampling: The survey has to be conducted through Simple Random Sampling.
Data Collection:
The objectives of the study are such that both primary and secondary data is req
uired to achieve them. So both primary and secondary data is used for the study.
The mode of collecting primary data is questionnaire mode and sources of second
ary data are various magazines, books, newspapers, & websites etc.
(a) Primary Data Collection: The primary data is to collect by means of question
naire and analysis is done on the basis of response received from the customers.
The questionnaire has to be designed in such a manner that the comparative stud
y of insurance companies and awareness level can be measured.
(b) Secondary Data Collection: The Secondary data refer to those data which are
gathered for some other purpose and are already available in the internal recor
ds or publications. In my study, the Secondary data is to collect by going throu
gh various newspapers, magazines, journals and web sites.
Recording:
Data after collection have been processed and analyzed using percentages. Data o
btained during the study have been systematically tabulated and interpreted with
the help of tables or pie charts.
LIMITATIONS OF THE STUDY
1. The study is to be limited in Ludhiana city only because of limited time
 and financial resources. So results of the study may not be generalized for Ind
ia as a whole.
2. The sample size is limited to 200 respondents, so complete knowledge abo
ut subject is not possible.
3. Another factor could be the existence of biasness in the respondents min
d. Many times these business have greater bearing on the responses put forward b
y respondents.
4. Human weaknesses such as inattentiveness cannot be ignored.
5. People generally considered me as an insurance agent and tried to avoid
discussions with me.

QUESTIONNAIRE
Please spare few minutes to fill the questionnaire.
1. What is your occupation?
Business Class • Service Class •
2. How much of your income do you invest annually?
Below 5000 • Below 10000 •
More than 10000 •
3. Are you aware of Privatization in Life Insurance sector?
Yes • No •
4. Are you aware of following Life Insurance Companies?
ICICI Prudential • LIC •
Max New York • HDFC •
Bajaj Allianz • Birla Sun Life •
5. From which of following Life Insurance Companies you have taken insuranc
e policy?
ICICI Prudential • LIC •
Max New York • HDFC •
Bajaj Allianz • Birla Sun Life •
6. From where you get awareness about ICICI Prudential Life Insurance?
Electronic Media • Print Media •
Agents • Others •
7. What was the motive behind purchasing the policy?
Risk Coverage •
Saving •
Investment •
Taxation •

8. Are you satisfied with the services offered by your insurance co.?
Yes • No •
9. If yes, how much extent?
Highly Satisfied • Satisfied •
Neutral • Not Satisfied •
Dissatisfied •
10. Are you aware of the following insurance plans offered by Birla Sun Life
Insurance.?
Single Premium • Money Back •
Endowment • Children •
Pension • ULIP •
All •
12 How will you rate the Birla Sun Life Insurance? In maintaining good cu
stomer relationship?
Good • Average • Poor •
13. Do you think services provided by Private sector will be better than Pub
lic sector companies?
Yes • No •

PERSONAL PROFILE
Name: __________________________________
Age: A. 18-30 Years B. 30-45 Years
C. 45-60 Years D. 60 and above
Sex: Male Female
Qualification: A. Undergraduate B. Graduate
C. Post-Graduate
Contact No.______________________________
THANK YOU