A PROJECT REPORT

ON
INCREASING MARGIN BY PROVIDING
OPPORTUNITIES FOR INSURANCE
ADVISORS
AND PARTNERS
FOR
BIRLA SUNLIFE INSURANCE

TABLE OF CONTENT
S.R. NO

TOPICS

PAGE NO.

EXECUTIVE SUMMARY

INTRODUCTION TO THE TOPIC

INDUSTRY PROFILE

COMPANY PROFILE

15

PRODUCTS

22

RESEARCH OBJECTIVE

37

RESEARCH METHODOLOGY

38

ANALYSIS OF INFORMATION

42

LIMITATION

57

10

OBSERVATION AND FINDING

58

11

SUGGESTATION

61

12

REFERENCES/BIBLIOGRAPHY

67

13

ANNEXURE

68

Executive Summary
This Project report title has been undertaking a part as per Post Graduate Program of out
college in Birla Sun life insurance company Limited Mathura.

The project has the primary objective

To study the market and find the probable prospect for the purpose of becoming the
insurance advisor of Birla sun life insurance.

Secondary Objective
To convert these potential prospect into insurance advisor for the firm.
This has been a learning project in the beginning my focus was on collecting
information about Birla sun life insurance and its competitors. This involved an
intensive survey of the market.

Research Methodology
A questionnaire was designed keeping view the objective of research. Research method
was undertaking.

Sample Size of around 200 responded was decided which include tax consultant ,C.A,
insurance agents M.R, house wives, students, share brokers, and sales persons.

Value Added Service (VAS) emerged as very important factors as most of the
companies is not making much of revenues from VAS. So it was necessary to
understand the value added services which the various companies were offering.

This selling experience was very important from the point of view of the outcome of the
project. These selling skills provided by the college together with the insight received
from the survey helped me in selling the companies plan.

The final part of the project involved formulating strategies as per customer replies.

Some of the customer expectations cannot been meet possibly because of the complexity
involved in the industry. However this information has been passed on to my seniors
over these and they has assure me that we will look into those matters.

The conclusion of the research was the Birla sun life insurance is very powerful and well
known brand in the market. They have created for themselves very good positions and
trust in the mind of customers.

1.0

INTRODUCTION:

1.1

BRIEF HISTORY OF UNIT- LINKED INSURANCE : The unit

linked life insurance policy as it is understood and practiced in the
west was introduced in our country only in 2000 when LIC brought
in to the market a policy called BIMA PLUS. As a data, expect two
or three new companies all the companies are selling the unit linked
life insurance policies. The term unit in our country is somehow
identified only with the units sold by UNIT TRUST OF INDIA.
This product is also called EQUITY LINKED POLICY or
MARKET LINKED POLICY to indicate that the returns under
these plans are linked to the market returns of the equities or shares.
The credit of introducing the first unit linked plan goes to UTI when they brought
out the Unit linked life insurance (ULIP) in 1971,In 1989 LIC Mutual Fund
introduced the DhanRaksha Plan identified to the ULIP. The term of the policy in
either 10 or 15 years. With the effect from 1-7-02 the target amount under these two
schemes has been introduced to Rs. 2 lakhs from Rs.75, 000.it works like this: from
the uniform contribution for each year (for example @Rs.20,000 for ten years) a
small portion is used to buy term death cover for Rs.2 lakhs and the balance is
invested in units and at the end of ten years the accumulations made in your account
is given as the maturity benefit along with a 5 or7.5% bonus. There is some
restriction in full death cover in the first two years. After two years the full death
benefit will be paid equal to the target amount. a free accident cover is also given for
Rs.50,000. From April 2000 this plan is made NAV driven and UTI has made
several beneficial changes. In fact, these plans are considered to be the cheapest

insurance with good returns! As life insurance people are not making these plans,
they are not very popular in large numbers.

The concept involved in these unit or equity linked policies is that as the major part
of your premium amounts paid over a period of years is invested in equities and
other capital market instruments year after year, the return when it comes will not be
affected very much by inflation as it happens in a maturity value of the policy in any
average life insurance policy for the same period. 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
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.

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 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.

1.2

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 unitlinked plans.

1.2.1

THE ADITYA BIRLA GROUP: Aditya Birla, a name that evokes all that is
positive in business and life. It typifies integrity, quality, performance, innovation,
perfection and above all, character.

In operation for over 50 years now, the Aditya Birla Group is one of Indias largest
business houses. A highly respected and admired group, rooted in performance
9

ethics based on value creation for its multiple stakeholders. The Aditya Birla
Groups operations span over 40 units across 18 countries, anchored by a 72,000
strong committed workforce, a group turnover exceeding Rs.27, 000 crore, an asset
base which exceeds Rs.20, 000 crore and a market capitalization of over Rs.13, 000
crore spread over 7 lac shareholders. Known for its rack solid fundamentals it
nurtures a culture where success does not come in the way of the need to keep
learning afresh to continue innovating and to carry on experimenting.
Being one of the largest corporate houses in India, and Aditya Birla Group enjoys a
dominant position in all the sectors in which it operates. It is the worlds largest
producer of viscose staple fibre, largest single location aluminum plant and the
largest single location refiner of palm oil. Whats more, it is the second largest
producer of insulators and the fifth largest producer of carbon black in the world.

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

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

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

10

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

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

The Sun life financial group of companies around the world, offer innovative and
practical financial solutions to individuals and corporations:

Life, Health and Disability

Pension Funds and Plans

Investment Management

Annuities and Savings

Trust, Brokerage and Banking

Sun life assurance Company of Canada, sun life financiers primary insurance
business, has excellent ratings with the worlds top ratings agencies. With assets
under management as on September 30, 2000 totaling more than CDN$345 billion, it
ranks amongst the largest international financial services organizations in the world.
11

Sun life financial enjoys independent rating that place us at the top of the financial
sector in North America.
1.2.3

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.

1.2.4

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.

1.2.5. OUR VALUES:

INTEGRITY

TRANSPERENCY

CUSTOMER FOCUS

EXCELLENCE

INNOVATION

MERITOCRACY

RESPECT FOR THE INDIVIDUAL

1.2.6. OUR FEATURES: Our unit-linked flexi products are based on universal life
platform, catering to the customers twin needs of insurance and investment. Our
12

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 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
13

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 ones financial situation a shorter premium-paying period can be

selected, with the advantage of greater accumulation resulting into higher
death/surrender/withdrawals/ maturity benefits.

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 policyholders requirements. For

instance our Flexi life line with the facility of limited premium payments

14

and withdrawals thereafter, becomes a veritable pension plan with

attendant tax benefits.
d.

Detailed illustration at the point of sale

Reason for selecting the topic

India with about 200 million middle class house hold shows a huge untapped potential
for player in the insurance industry. India have always seen life insurance as a tax saving
device, are now suddenly turning to the private sector that are providing them new
products and variety for their choice. The Indian consumer should be ready now because
the market is going to give them an array of product, different in price, features, and
benefits. How the customer is going to make his choice will determine the future of the
industry.

The industry presents a huge opportunities life insurance penetration, for instance was at
an abysmal 18% of the insurable population. However private players have had to rise to
many challenges. They were faced with attitudinal barriers towards the category and the
perception that insurance was only a tax-saving tool. Insurance had lost its basic
relational: protection. It wasnt surprising then that its potential lag frozen and
unexploited. The challenge for private insurance players was to change the established
category driver and get customers to evaluate life insurance as an investment cum
protection tool.

15

16

Brief History Of Insurance

Though the concept of insurance is largely a development of the recent past, particularly
after the industrial era past few centuries yet its beginnings date back almost 6000
years.
Life Insurance in its modern form came to India from England in the year 1818. Oriental
Life Insurance Company started by Europeans in Calcutta was the first life insurance
company on Indian Soil Bombay Mutual Life Assurance Society heralded the birth of
first Indian life insurance company in the year 1870, and covered Indian lives at normal
rates. Starting as Indian enterprise with highly patriotic motives, insurance companies
came into existence to carry the message of insurance and social security through
insurance to various sectors of society. Bharat Insurance Company (1896) was also one
of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave
rise to more insurance companies. The United India in Madras, National Indian and
National Insurance in Calcutta and the Co-operative Assurance at Lahore were
established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth
in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in
Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay
Life) were some of the companies established during the same period. Prior to 1912
India had no legislation to regulate insurance business. In the year 1912, the Life
Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance
17

Companies Act, 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated
between foreign and Indian companies on many accounts, putting the Indian companies
at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business.
From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176
companies with companies many financially unsound concerns were also floated which
failed miserably. The Insurance Act 1938 was the first legislation governing not only life
insurance but also non-life insurance to provide strict state control over insurance
business. The demand for nationalization of life insurance industry was made repeatedly
in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance
Act 1938 was introduced in the Legislative Assembly. However, it was much later on
the 19th of January, 1956, that life insurance in India was nationalized. About 154
Indian insurance companies, 16 non-Indian companies and 75 provident were operating
in India at the time of nationalization. Nationalization was accomplished in two stages;
initially the management of the companies was taken over by means of an Ordinance,
and later, the ownership too by means of a comprehensive bill. The Parliament of India
passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life
Insurance Corporation of India was created on 1st September, 1956, with the objective
of spreading life insurance much more widely and in particular to the rural areas with a
view to reach all insurable persons in the country, providing them adequate financial
cover at a reasonable cost.

18

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 nationalized. LIC formed by an Act of Parliament, viz. LIC Act,
1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in the
year 1850 in Calcutta by the British.
19

Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.

20

INDIAN INSURANCE INDUSTRY:

Insurers

Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:

Life Insurers:

Life Insurance Corporation of India (LIC)

21

General Insurers:

General Insurance Corporation of India (GIC)

(with effect from Dec'2000, a National

Reinsure)
GIC had four subsidiary companies, namely ( with effect from Dec'2000, these
subsidiaries have been de-linked from the parent company and made as independent
insurance companies.
1.

The Oriental Insurance Company Limited

2.

The New India Assurance Company Limited,

3.

National Insurance Company Limited

4.

United India Insurance Company Limited.

22

Now these are the private players of life insurance

Birla Sun Life Insurance

ICICI Prudential Life Insurance Company Ltd.

Bajaj Allianz Life Insurance Company Ltd

Tata AIG Life Insurance Company Ltd

HDFC Standard Life Insurance Company Ltd

Aviva Life Insurance India

ING Vysya Life Insurance

Kotak Mahindra Life Insurance

Max New York Life Insurance

MetLife Insurance India

Reliance Life Insurance

SBI Life Insurance

Shri ram Life Insurance

23

24

Birla Sun Life Insurance Company (BSLI)

Birla Sun Life Insurance established in 2000, is a private life insurance company. It is
joint venture between the Aditya Birla Group- one of Indias leading business
conglomerate and Sun Life Financial Inc, global financial service provider based in
Canada. Aditya Birla holds 74% stake and Sun Life has 26% of equity in the joint
venture.
Product Portfolio of Birla Sun Life Insurance:
Birla Sun Life Insurance has wide array of products which include Child Plans,
Retirement Plans, term plans, savings & investment plans and health plans.
Retirement Plan: With rising inflation, its absolutely necessary to make provisions for
the future which makes retirement plan an important financial decision. Better known as
Pension plan, this plan takes care of financial needs after retirement by investing a part
of your savings for limited period. Pension plan provides steady income after retirement
and takes care of daily needs. The pension plans offered by Birla Sun Life are BSLI
Classic Life Plan, BSLI Dream Life Plan, BSLI Immediate income Plan and BSLI
Secure 58 Plan.
Child Plan: Parenthood brings responsibilities and no one is better judge of that than
you. Child Plan is a plan specifically designed to take care of financial needs of your
child. Child plan provides with necessary funds that will take care of childs education,
marriage etc. By investing small portion of your savings you secure the financial end of
your child. Child plans of Birla Sun Life are called BSLI Classic Child Plan, BSLI
Dream Child Plan and BSLI Dream Child Plan.
Term Plan: A risk plan which provides comprehensive cover for your family in the
unfortunate event of untimely demise. A term life insurance plan provides good cover at
relatively nominal cost and has no survival benefits. Birla Sun Life term plans are BSLI
Term Plan, BSLI Premium Back Term and BSLI High Networth Term.
Investment Plan: Popularly known as ULIP, an investment plan invests part of your
savings in equity or debt market as per your preference. The objective of investment
plan is to give you returns which easily beat the rising costs since the usual returns in a
bank are extremely low. ULIPs offered by Birla Sun Life are BSLI Rainbow Plan,
25

BSLI Platinum Advantage, BSLI Dream Endowment Plan, BSLI Money Back Plus
Plan, BSLI Guaranteed Bachat Plan, BSLI Bachat Endowment Plan, Bachat-Money and
Classic Endowment Plan.
Health Plan: Slightly different from health insurance, health plan provides cover for
surgery costs, critical illness. A lump sum is paid irrespective of actual hospital bill.
BSLI Health Plan and BSLI Universal health Plan are Birla Lifes health plans.
Distribution Network:
Birla Sun Life Insurance has extensive network of 600 branches and 175000 empanelled
advisors.
Financial Information:
The total gross premium earned for the half year ended September 30, 2010 was Rs
25,935 million. The profit after tax for the same period is Rs 292 million. A total of
2761 claims were made during the period out of which 2408 claims were settled and 180
claims were rejected.
Marketing Campaign:

Birla Sun Life has signed up with Indian cricketers namely Yuvraj Singh, Virender
Sehwag, Suresh Raina and Rohit Sharma as its brand ambassador. The ad campaign
focuses on insecurity of successful cricketers saying Jab tak balla chalta hai, thaat
chalta hain. Warna What Birla Sun Life wants to communicate is well
thought out plans could go wrong its better to be ready.

Birla Sun Life also launched a website called www.notjobsbutpassion.com which has
career advice for children as part of their campaign to awaken customer for the need of
child plans.

Distinctions:
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.
26

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

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

Management of BIRLA Sun Life insurance

27

Jayant Dua is the MD of Birla Sun Life.

Mayank Bathwal is the CFO of Birla Sun Life.
Amitabh Verma is the COO of Birla Sun Life.
Vikram Kotak is the CIO of Birla Sun Life.
Fabien Jeudy is the Chief Actuarial Officer and Appointed Actuary of Birla Sun Life.

28

1.3

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
29

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
Hish Highless

Maharaja G.Singh

Mr. S.N. Talwar

Mr. G.P. Gupta

AUDIT COMMITEE
Mr. B.N. Puranmalka
30

 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

Mr. S.K.Mitra

Mr. B.N. Puranmalka

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

THE BSLI MANAGEMENT TEAM

31

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

(marketing &comm.) (group life &personal) (control & admin.)

K.S.Gopalkirshnan
(actuary)

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

Mr. Mayank Braganaza (chief manager- finance and planning)
Sanjay Parikh (chief manager- product development)

32

Mr.

1.4 BRIEF PROFILE OF SEVICES OF ORGANISATION:

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

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

33

1.4.1 INDIVIDUAL LIFE PLANS: Birla sun life insurance offers

number of individual life plans, which can be given below1.4.1. FLEXI SECURELIFE RETIREMENT PLAN: This is a unitlinked retirement plan to give you efficient returns in the long term so
as to build a sufficiently large corpus of savings on retirement. The
planes built in tow phases: the accumulation phases and annuity
phase. During the accumulation phase the plan gives you a choice of
three investment options to invest your money with an option to
switch between these funds to match your risk appetite. Whats more
it offers a guaranteed minimum return of 3% on your premium
(deposit) amount net of all charges and deductions in this phase. In
the annuity phase the plan gives 2 options to choose from.
1.4.1.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.
1.4.1 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

34

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.
1.4.1 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 amounts and continuing it in
the plan to take advantage of the benefits of compounding.
1.4.1 BIRLA SUN LIFE TERM PLAN: The plan offers large life
insurance cover for very low costs for a specified term. It is a low
premium, pure risk coverage plan, which takes care of ones financial
commitments toward his/her depending should anything unfortunate
happen to line policyholder.
1.4.1 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.

35

1.4.2 GROUP PLANS: Birla sun life insurance Company offers number
of group plans, which can be, described below1.4.2 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.
1.4.3 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.

1.4.4 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.

36

37

Birla Sun Life Product Table:

Retirement/Pension Plan

BSLI Dream Life Plan

Retirement/Pension Plan

BSLI Classic Life Plan

Retirement/Pension Plan

BSLI Immediate Income Plan

Retirement/Pension Plan

BSLI Secure 58 Plan

Child Plan

BSLI Dream Child Plan

Child Plan

BSLI Classic Child Plan

Child Plan

BSLI Bachat Child Plan

Term plan

BSLI Term Plan

Term Plan

BSLI Premium Back Term

Term Plan

BSLI Networth Term

Savings & Investment Plan

BSLI Rainbow Plan

Savings & Investment Plan

BSLI Platinum Advantage

Savings & Investment Plan

BSLI Dream Endowment Plan

Savings & Investment Plan

BSLI Money Back Plus Plan

38

Savings & Investment Plan

BSLI Guaranteed Bachat Plan

Savings & Investment Plan

BSLI Bachat Endowment Plan

Savings & Investment Plan

BSLI Bachat-Money

Savings & Investment Plan

BSLI Classic Endowment Plan

Health Plan

BSLI Health Plan

Health Plan

BSLI Universal Health Plan

Objectives of the Research

To study the market and find out the prospects who are willing and capable of joining
the work force team of Birla Sun Life Insurance Company Limited and there by helping

39

the company in increasing its business and scaling new heights in the Insurance
business.

40

Research Methodology Adopted

Research Methodology
Research Objective
41

Finding the prospects for the company in the market.

Analyzing their eligibly criteria for Insurance Advisors in the company.

Assumption Statements

It has been assumed that the sample of 100 respondents represent the whole
population.

The information given by customer is unbiased.

Research Approach
The research conducted is a descriptive research. Descriptive research include survey
and fact finding enquiries of different kinds. The major purpose of descriptive research
is description of the sate of affair as it exists at present.

Research Method
Research method refers to behavior and instruments we use in performing research
operation.
The research method is used:

42

Questionnaire method (with open closed question)

Data Source

Primary data (which is collected by the researcher himself on a first hand basis)

Secondary data (which is collected by a person or any organization offer than

researcher)

The data source used for the study conducted at Birla sun life insurance was both
primary and secondary data.
Primary data by self.
Secondary data by telephone directory, references, and other sources.

Sample Method
The sampling method, which is adopted, is random sampling.

Data Analysis
The analysis of survey has been done on % basis.

Sample Plan
Sampling Unit:The sample unit in the case will be other insurance companies
competing
in private insurance market.
Universe All the graduates of the minimum age 21.
Sample Size : 100
Sampling Method purposive sampling sample is decided will in advance, which will be
studied for the project.

43

Contact Method personnel interview

Generally a research method comprises of following steps:
Step General Methodology
1
To decide the objective of study

Applicability of methodology
To study the market potential of the

future prospect Insurance Advisors

Descriptive research is applicable to the

To decide the research design

project

44

To determine the source of data

Primary data and secondary data both are

4
5

applicable to the project

To design data collection form
Survey method is applicable
To determine sampling design and Non probability stratified is applicable

sample size
To organize and conduct the field Personal interview through structured
work

questionnaire are used to collect the

primary data
To process and analysis the collected To study the perception and pains of

data
To prepare the research report

potential customers
Finding and analysis of the collected
information

45

S.NO
1
2
3
4

Qualification
12th
Graduate
Post Graduates
Professionals
Total

RESPODENTS
25
45
20
10
100

QUALIFICATION

46

On the basis of qualification of

prospect

12th Passed
Graduate
Post Graguates
Professionals

Result
In my survey, I have taken 100 sample size and give adequate representative to person
of all ages. Out of 100 respondents majority fall in graduate and least in professionals.
As do today due to being a part of Birla sun life is list preferred by Graduates.

MARITAL STATUS

Married

62

47

Unmarried

38

On the basis of martial status

Unmarried
Unmarried
Married
Married

Result
Married ones gave more response as compare to unmarried. They want to earn more so
that they provide more facilities to their family members.

RESIDENCY IN MATHURA

More than 5 years

92
48

Less than 5 years

S.NO
1
2
3
4
5
6

Profession
Insurance Agents
Service
Students
Professionals
House wife
Others

RESPODENTS
23
17
25
5
6
24

Result
In my survey I found 92% people live in Mathura more than 5 years. They have good
relation with peoples.

Resident in Mathura

less than 5
years

More then 5 years

ON THE BASIS OF PROFESSION
less than 5 years

More then 5
years

49

On the Basis of Profession Detail

30
25
20
15
10
5
0

In
su
r

O
th
er

W
ife

ts
H

ou
se

on
al
s

St
ud
en

an
ce

Pr
of
es
si

Ag
en
ts
Se
rv
ice

Series1

Result
Based on profession most of the people wants to work with BIRLA SUN LIFE. In that
study student gave more attention. Next to students others group comes.

WORK WITH BIRLA SUN LIFE

YES

15

NO

50

50

THINK

35

WORK WITH BIRLA SUN LIFE

Yes
NO
THINK

Result
Although 50% respondents did not want with BIRLA SUN LIFE but 35% respondents
may take decision in favor which is positive sign for BIRLA SUN LIFE.

51

INSURANCE IN RURAL

RURAL

25

URBAN

75

AREA WISE

80
60
Series1

40
20
0

RURAL

URBAN

Result
75% of Insurance Agents work in urban area only. In my survey I found that rural
people want insurance but there are less no of agents with good product knowledge.
They need good advisor who can give them proper advice for investment.

52

S.NO
1
2
3
4

COMPANY
LIC
BABAJ ALLIANCE
BIRLA SUN LIFE
OTHER
Total

RESPODENTS
75
6
15
4
100

PURCHASING INSURANCE

PURCHASING INSURANCE
80
70
60
50
40
30
20
10
0

Series1

LIC

BIRLA SUN LIFE INSURANCE

53

Result

75% customers are with LIC. This is because customers think LIC is Government
Company. But BIRLA SUN LIFE is on 2nd rank in overall performance. In private
players it maintains its rank 1st.

INVESTING IN NEW POLICIES

YES

15

NO

85

INVESTING IN NEW POLICIES

YES
NO

Result
54

Only 15% customers are regular investors and updated themselves with new policies.
85% customers are satisfied with 1 or 2 policies.
S.NO
1
2
3
4

BECAUSE FOR
TAX SAVING
INVESTMENT
RISK COVER
FUTURE
Total

RESPODENTS
51
19
25
5
100

Why customers purchases Insurance Policies

55

THINKING WHILE PURCHASING INSURANCE

60
50
40
30

Series1

20
10
0
TAX SAVING INVESTMENT RISK COVER

Result

56

FUTURE
PLANNING

In my survey I found that 51% people invest in Insurance because it is tax saving tool.
Only 25% people purchase insurance because it is life guard or risk reducer. Only 5%
S.NO
1
2
3
4

RESULT
AWARENESS
COMPETITION
SERVICE IMPROVE
EAT MARKET SHARE
Total
people invest for future.

RESPODENTS
60
10
23
7
100

AFTER COMING PRIVATE PLAYERS IN MARKET

57

AFTER COMING PRIVATE PLAYER

AWARENESS AMONG
CUSTOMER
COMPETITION
IMPROVE SERVIVE
REDUCE LIC MARKET

Result
While in survey I found that after coming player in Insurance sector, awareness among
customer increased. Very few people thought they eat market share of LIC.

58

INSURANCE ADVISORS OF BIRLA SUN LIFE INSURANCE

RURAL INSURANCE ADVISORS

15

URBAN INSURANCE ADVISORS

85

INSURANCE ADVISORS

RURAL INSURANCE
ADVISORS
URBAN INSURANCE
ADVISORS

Result

59

Unit Managers and Agency Manager mainly focus on urban area. They mainly recruited
for urban. But they forget that in rural there is less competition. Only 15% insurance
S.NO
1
2
3
4

AGE
18-25
25-35
35-45
45-55
ABOVE 55
advisors belong to rural.

RESPODENTS
7
38
28
17
10

ACCORDING TO AGE GROUP

60

Intrested to join Birla sunlife

40
35
30
25
20
15
10
5
0

Series1

18-25

25-35

35-45

45-55

Above 55

Result
In the age of 25 to 35 responsibly are increased. They want earn more and so they fulfill
their requirement easily. This age group is more concuss for their bright future.

INCOME PER MONTH

61

S.NO
1
2
3
4

AGE
LESS THAN 10000
10000-15000
15000-25000
ABOVE 25000
TOTAL

RESPODENTS
10
25
45
20
100

Income per month

60
40
Series1

20
0

S1
Less than 10000-15000 15000-25000 Above 25000
10000

Result
In my survey I found that 15000 to 25000 rupees per month can easily earn in insurance
sector. They said there is lot of money in insurance sector.

62

LIMITATION

All research studies are bound by certain limitation .this research studies on the identification of
channel
partners for life insurance business also had a few limitation which are as follows .

The research was to be completed in 60 days, so time was limitation.

The cost and expenses for carrying out the research had to wear by ourselves.

Due to the limitation of time and money ,the sample size could not be exceeded more than 200
respondents.

Appointments from respondents were required in order to meet them. The respondents were

63

hesitated to give appointment for filling up questionnaires.

The respondents were not willing to disclose their family income and telephone number

The respondents had a felling that their personal information would not be kept confidential and
would be sold to some other company .so convincing the respondents for disclosing true
information was difficult.

Findings

Many people have answered for LIC because it is a govt. company and plans of
LIC are good. It is said by people who are surveyed for the recruitment.

Major respondents come in graduate group because they want to earn more
money and have secure future in terms of unit manager, trainer after completed
certain target.

64

Under based on occupation most of the respondents who are in students sectors
give more preference for insurance advisors.

Many respondents answered negatively when I asked question do you want to

work with as BIRLA SUN LIFE INSURANCE advisor. In that only 15% people
answered in positive and rest of all answered no or we think later.

In respondents BIRLA SUN LIFE who are in 40-60 yrs. Age group says that an
agent can earn more then 10000 per month which is highest scored answer.

In my survey I found that after come of private player it rise awareness of

insurance among customers.

As based on age wise group 20-30 yrs age people wants to join the company or
recruit with the company.

As based on occupation wise group most of the respondents want to recruit with
the company. In that study, others group persons comes.

Many Respondents dont know about BIRLA SUN LIFE so they replied
negatively. In that 63% respondents are there and rest are all wants respondents
want to join BIRLA SUN LIFE.

65

On the marital status married person give positive response as compare to

unmarried.

As area wise only 25% advisors belong to rural area where as 75% belong to
urban because unit managers give more attention towards to rural area.

Only 20% investors in BIRLA SUN LIFE belong to rural because numbers of
rural advisors are less and most of them focused on urban area only.

When I discussed with LIC insurance agent about the customers behavior, they told
me that more than 50% customers purchase insurance for tax benefit only. Only 25%
customers look insurance as risk cover BIRLA SUN LIFE deals with the High NetWorth Individuals (HNI) ,which are considered to very productive

BIRLA SUN LIFE deals with the High Net- worth Individuals (HNI), which are
considered to very productive.

I found that LIC gives more facilities like home loan, vehicle loan, phone bills etc. to
its good agents. But these facilities are not given by BIRLA SUN LIFE. So many
respondent want to work in Insurance but with LIC.

66

67

Conclusion

As summer training project I took customer awareness and expansion of

distribution network. I found that company has good reputation in market and it
rank to top maximum market share. Company has best experienced and

68

knowledgeable flexible sales manager, ICs etc. And they are working like family.
The companys aim is providing best services to its customers.

I have completed my summer training at BIRLA SUN LIFE INSURANCE,

MATHURA. Based on the facts and experiences during two months I can say that
the services and facilities provided by organization to the existing employees and
customers are very good. The digitalization of product explanation is very
impressive. Also the company has variety of plans to attract the customer to invest to
insurance. I had made certain conclusions which are as follows-

The company is having minimum no. of advisor as compared to the other

private organization working in same region and also the criteria for
selection of advisor are not so hard and fast.

Company is trying to target the surrounding rural area for recruitment of

advisors so as to tap fresh area without vast competition.

The close competition for Birla sun life is Bajaj Allianz and it is dominating
the organization in term of brand, awareness. So company has to make
efforts to make people aware about the services and advantages of The
company has to make sure about the proper use of facilities and Birla sun
life administration stationers Eg. Tale calling, fax, Xerox, pantry etc.

People are not ready to work with Birla sun life insurance the reason might
be commission structure plane or restrictions to the advisors with respect to
no. of policy plane per period.

69

SUGGESTION

The company should offer different facilities such as pay roll system, loan facilities at
0% interest, pension provision, office maintenance expenses etc for attracting different
age groups of individuals as the needs of each group vary from each other.

70

The business proposals to prospective channel partners such as business partners,

cooperate agents can be made attractive by using absolute figure like up to 40%
instead of stating the average because they have more expenses such as salary to their
staff, office rent, telephone charges etc .

The existing commission structure of 22.5 %( average) for traditional products and 10%
for a mix of unit linked. Traditional products should be revised by 25% in order to
motivate the advisors because many companies like LIC, Bajaj Allianz, Max New York
Life Insurance etc provided such kind of commission structure.

Company needs to strengthen its image as the number one life insurance company in
India through aggressive sales promotion through local media, road shows, aware rural
about the importance of insurance through direct chat and recruitment of insurance
advisors. Company should try to recruit Gram Pradhan, Member of Gram Panchatya or
their family member because rural people listen these people.

All insurance companies offer similar benefits BIRLA SUN LIFE should introduce
benefits which are different from those of the competitors such as home loan, vehicle
loan facilities, laptop and computer facilities, training related IT, telephone and mobile
bill (depend on the work), pension facilities etc these would act as motivators for
individuals to join the companys distribution network.

BIRLA SUN LIFE should absorb the cost of license, training, IRDA examination for
individuals with a good profile such as doctors, CA, Income Tax Advisors, MR,
Insurance Agents etc.

71

The company should actively promote its business proposals because most of the people
are not aware of it .due to unawareness ,many people with good contacts and business
commitments would never be able to join the companys agency force or would join
some other life insurance company as their channel partners.

Company also needs to change the mindset of people that LIC is more reliable than
BIRLA SUN LIFE by showing its previous payment, claim and service records.

Unit manager should recruit rural advisors which increased the sales of company. Take
an example if a unit manager recruits 10 new advisors in rural in a year. If these advisors
will give average of 12 policies in a year. There are 5 unit managers in Mathura Branch
the total recruitment 50 new advisors in rural area. These advisor will sale 600 new
policies in a year. It increases the sale of 10%.

Unit managers are recruited as area wise. Some unit managers should appointed for the
rural area and some are for urban area. About 70% of Indian population lived in villages.

BIBLIOGRAPHY/REFERENCES
To complete this report I take the help of these:
72

Kotler Philip Marketing management,12th edition

Kothari C.R., Research metholodegy,2th edition

Kulkarni M. V. Marketing research millennium edition

My friends & my teacher always provide help, me on this summer training

report.

Side Visited
www.licindia.com
www.irdaindia.org

www.bsli.orgwww.BSLI.com

Search Engine
www.google.com

73

Questionnaire

Name

Address

Phone No

Mobile No

74

E-mail Address

1. Are you regular investor in new investment policies?

a) Yes

b) No

2. Which is safer investment as insurance?

a)Birla sun life

b)LIC

c) Bajaj Allianz

d) Other

3. While investment which factor influence more

a) Government company

b) Trust

c) Rate of return

d) Service

4. After coming of private player in insurance it rise

a) Competition

b) Awareness among Customer

c) Providing more

value to customer

d) Eat market share of government companies

5. What is your profession?

a) Service

b) Business

c) Sales and marketing

6. Are you interested to join insurance profession?

a) Yes

b) No

7. What do you think the plans of insurance are for what?

a) Investment
b) Risk Cover
c) Tax saving

75

d) Professional

d) Future
8. Are you interested to work with Birla Sun life insurance?

a) Yes

b) No

9) If you are an advisor of Birla sun life insurance how much you will earn per month

a) Less than 10000

b) 10000-15000
c) 15000-25000
d) Above 25000
10) Give do you think about Birla Sun life insurance ?
______________________________________________________________________

76