You are on page 1of 52

INTRODUCTION

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

also usually a two-year period; if the insured dies within this period, the
insurer has a legal right to contest the claim and request additional
information before deciding to pay or deny the claim.
The face amount of the policy is normally the amount paid when the policy
matures, although policies can provide for greater or lesser amounts. The
policy matures when the insured dies or reaches a specified age. The most
common reason to buy a life insurance policy is to protect the financial
interests of the owner of the policy in the event of the insured's demise. The
insurance proceeds would pay for funeral and other death costs or be
invested to provide income replacing the deceased's wages. Other reasons
include estate planning and retirement. The owner (if not the insured) must
have an insurable interest in the insured, i.e. a legitimate reason for insuring
another persons life. The insurer (the life insurance company) calculates the
policy prices with an intent to recover claims to be paid and administrative
costs, and to make a profit. The cost of insurance is determined using
mortality tables calculated by actuaries. Actuaries are professionals who use
actuarial science which is based in mathematics (primarily probability and
statistics). Mortality tables are statistically based tables showing average life
expectancies. The three main variables in a mortality table are age, gender,
and use of tobacco. The mortality tables provide a baseline for the cost of
insurance. In practice, these mortality tables are used in conjunction with the
health and family history of the individual applying for a policy in order to
determine premiums and insurability. The current mortality table being used
by life insurance companies in the United States and their regulators was
calculated during the 1980s. There is currently a measure being pushed to
update the mortality tables by 2008.
The current mortality table assumes that roughly 2 in 1,000 people aged 25
will die during the term of coverage. This number rises roughly quadratic

ally to about 25 in 1,000 people for those aged 65. So in a group of one
thousand 25 year old males with a $100,000 policy, a life insurance
company would have to, at the minimum, collect $200 a year from each of
the thousand people to cover the expected claims. The insurance company
receives the premiums from the policy owner and invests them to create a
pool of money from which to pay claims, and finance the insurance
company's operations. Contrary to popular belief, the majority of the money
that insurance companies make comes directly from premiums paid, as
money gained through investment of premiums will never, in even the most
ideal market conditions, vest enough money per year to pay out claims.
Rates charged for life insurance increase with the insured's age because,
statistically, a people are more likely to die as they get older.
Since adverse selection can have a negative impact on the financial results
of the insurer, the insurer investigates each proposed insured (unless the
policy is below a company-established minimum amount) beginning with
the application, which becomes part of the policy. Group Insurance policies
are an exception. This investigation and resulting evaluation of the risk is
called underwriting. Health and lifestyle questions are asked, and the
answers are dutifully recorded. Certain responses by the insured will be
given further investigation. Life insurance companies in the United States
support The Medical Information Bureau, which is a clearinghouse of
medical information on all persons who have ever applied for life insurance.
As part of the application, the insurer receives permission to obtain
information from the proposed insured's physicians. Life insurance
companies are never required by law to underwrite or to provide coverage
on anyone. They alone determine insurability, and some people, for their
own health or lifestyle reasons, are uninsurable. The policy can be declined

(turned down) or rated. Rating means increasing the premiums to provide


for additional risks relative to that particular insured.

VISION

To be a world class provider of financial security to individuals and


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

MISSION
To be the first preference of our customers by providing innovative, need
based life insurance and retirement solutions to individuals as well as
corporates. These solutions will be made available by well-trained
professionals through a multi channel distribution network and superior
technology.
Our endeavour 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

IRDA:
The insurance sector has been opened up in India, as there was an
urgent need. The international experience indicates those country with a
liberalized insurance sector have witnessed a rapid growth in premium
volumes enhancing the domestic saving rate. This happened in China,
Malaysia and Singapore where a competitive market has led to
improvement in Services and quicker settlement of claims. It is also
important to note that competition will bring about advancement in
information, communication and technology. And rightly therefore a
decision was taken by the Government of India to open up Insurance sector.
The establishment of IRDA in the month of April 2000 has been important
development in this direction, making the end of monopoly in the insurance
sector.
WHY INSURANCE IN INDIA:
Only 22% of the insurance population has been extended cover.
Market penetration is low and the potential to exploit is high.
Insurance premium per capita is very low.
Lack of comprehensive social system benefit and welfare means that
demand for pension products is high.
Huge middle class of approximately 300 Million.
Existing insurance company score low on customer service front.
The insurance market registered growth in the Asian region even though
Indias share in global insurance is less than 0.5% (1988) as compared to
USA (24.2%) and Japan (21%). Studies have reveled that in an emerging

market, as disposable income rises, Insurance premiums as a ratio of GDP


shoots up. The confederation of Indian Industry projected a growth of Life
Insurance premiums from Rs. 350 Billion at present to Rs.140 Billion. The
growth of non-life insurance premium is expected to increase from 75
billion to 375 billion. Out of which, only 10% is tapped by the existing
insurer.
Insurance even more than banking is a volume game. A very
exclusive approach in view is unlikely to provide meaningful numbers.
Currently, insurance is bought for the purpose of tax-benefits. A higher
percentage of business is in the rural market. The share of rural new
business insurance total new business is 55% in terms of policies and 47%
in terms of sum assured. However, this needs to be viewed in the light of
some recent issues that have been raised regarding as to what constitutes the
rural market. Therefore, private insurers will be best served by middle
market approach, targeting the customer segments that are presently
unexploited.
How many Indians are aware that LIC has more than 60Products and
GIC has more than 180Products? Not only there is a reduction in the
premiums of Life Insurance products have long overdue since Indian
morality rate has decreased three folds in the last 50years. There is also
scope to increase the yield on life insurance policies (presently 6%) with
proper risk management in place.
It is been debated that insurance business does not produce profit in
the first five years cross subsidization is a feature of Indian market. Even the
first portfolio vote that is considered profitable, cross subsidizes other
departments. Tariffs reduction is likely to reduce profits; further insurers
have to institute proper claims management progress in order to extract

efficiencies. At present life insurance business in the country is taxed at


12.5% of the profit in financial year. The government is soon to present a
new model of taxing life insurance companies at international rates.
New entrants should be well advised to look ahead to the stage where
brand strength will be a competitive advantage and sketch their alliances
accordingly. In fact, we believe that alliance related to distribution rather
than to produce or technology will prove most valuable in the long run.
Banks and financial companies will emerge, as attractive distribution
channel for this insurance trend will be led by two factors, which already
apply in other world market. First Banking food insurance, fund
management and other financial services companies are being to increase
their profitability and provide maximum value to their customers.
Therefore, they are themselves looking for a range of products to distribute.
In other market notably Europe; this has resulted in bank assurance.
Bank entering into the insurance business in India to bank hope to maximize
expensive existing network by selling a range of products more of a loss
alliance between insurance and bank than a formal ownership. Some Indian
entrants like ICICI, HDFC and Reliance hope to ride their existing network
and customer bases.

OBJECTIVE
To determine and analyze the Market Potential of the Birla Sun Life
Insurance Company in Sagar City.

To study the overall scenario currently prevailing in the market, namely,


the per capital income, purchasing power, occupation, literacy rate, etc.
To study and determine the competitor position in the market.

RESEARCH
METHODOLOGY
According to Green and Tall A research design is the specification of the
methods and procedures for acquiring the information needed. It is the
overall operational pattern or framework of the project that stipulates which
information is to be collected, from where it is to be collected and by what
procedures
This research process based on primary data analysis and secondary data
analysis will be clearly defined to meet the objectives of the study.
I chose the primary sources to get the data. A questionnaire was
designed in accordance with our mentor in Shirts. I chose a sample of
about 30 corporate customers
I collected some data from the secondary sources like published
Company documents, internet etc.
Research Design
A research design is the arrangement of conditions for collections and
analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedures. It is a descriptive cross sectional
design .It is the conceptual structure with in which research is conducted; it
constitutes the blueprint for the collection, measurement and analysis of
data.

It is needed because it facilitates the smooth sailing of the various research


operations, thereby making research as efficient as possible yielding
maximal information with minimal expenditure of effort, time and money.
In the preliminary stage, my research stage constituted of exploratory study
by which it is clear that the existence of the problem is obvious .So, I can
directly head for the conclusive research.
Sampling Plan
Sampling plan is a distinct phase of research process. In this stage I have
to determine who is to be sampled, how large should be the needed sample
and how sampling unit is to be selected.
Population
In my research, I have defined my population as a complete set of customers
of Sagar City.
Sample Survey
As compared to census study, a sample study has been conducted by us
because of:
Wide range of population, it was impossible to cover the whole
population
Time and money constraints.
Sample Unit
In this survey I took the list of customers from the dealers of Shirts
Sampling Technique
Sampling technique implies the method of choosing the sample items, the
two methods of selecting sample are:
Probability method.
Non-probability method.
Probability method is those in which every item of the universe has an
equal chance of the inclusion in the sample. Non-probability methods are

those that do not provide every item in the universe with known cause of
being included in the sampl

COMPANY PROFILE

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture


between the Aditya Birla Group and Sun Life Financial Inc., a leading
international financial services organisation. The local knowledge of the
Aditya Birla Group combined with the expertise of Sun Life Financial Inc.,
offers a formidable value proposition to customers.
Sun Life Financial and its partners today have operations in key markets
worldwide, including India, Canada, the United States, the United Kingdom,
Hong Kong, Philippines, Japan, Indonesia, China and Bermuda. Sun Life
Financial Inc. had assets under management of over US$ 386.82 billion, as
on 31 March 2007. Sun Life Financial 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
pioneered the launch of Unit Linked Life Insurance plans amongst the
private players in India. It was the first player in the industry to sell its
policies through the Bank assurance route and through the internet. It was
also the first private sector player to introduce a pure term plan in the Indian
market. This was supported by sales practices, which brought a degree of
transparency that was entirely new 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 build world class processing capabilities. BSLI has covered more than
one and a half million lives since inception and its customer base is spread
across 100 cities 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. Birla Sun Life Insurance (BSLI), one of the leading private life
insurers in India today announced the inimitable achiever, cricketer Kapil
Dev as their corporate brand ambassador. The cricketing supremo will be
endorsing BSLI in all its marketing initiatives. Birla Sun Life Insurance is a
value-driven brand which has a national brand recall of 70 per cent. The
objective of appointing a brand ambassador is to grow its brand recall as it
goes national in its distribution reach and fuel business growth. As a brand
ambassador, Kapil Dev will play a key role in the brand and product
marketing and promotional activities. BSLI has always used an integrated
marketing approach, which will be strengthened further.
Commenting on the association with Kapil Dev, Mr. S. K. Mitra, Director,
Financial Services, Aditya Birla Group and currently incharge of BSLI
expressed, "The Birla Sun Life Insurance business distribution network is
national in nature covering more than 1000 points across the country .We
have made our entry in several tier I and tier II towns. It is therefore very
important for the brand to connect at the grassroot level and create trust. We
believe that our association with Kapil Dev as our brand ambassador will
help us create this connect in a shorter period of time. We therefore now
have two strong connects our parent brand Birla and our brand
ambassador Kapil Dev".
Kapil Dev, also known as the Haryana Hurricane, was born on 6 January
1959 in Chandigarh. He played his first competitive game of cricket at the
age of 13 years and made his test debut on 16 October 1978 at Faisalabad
against Pakistan. Kapil Dev remained India's top strike bowler for almost 15
years. His extraordinary test match figures of more than 5000 runs and 434
wickets along with 64 catches show that he was a world class cricketer and
an all-rounder. He has raised the mantle of India to sporting glory by
winning us the World Cup.

In a study conducted by BSLI, Kapil Dev connected extremely well with the
life insurance category and had high acceptance by the masses. Our survey
suggests that he is seen as a very good fit for the BSLI brand. He is very
much loved and respected by a vast majority of the population.
On 26 November 2006, Birla Sun Life was host the annual golf tournament
at the Chembur Golf Club in Mumbai where Kapil Dev was participate.
About Birla Sun Life Insurance
Birla Sun Life Insurance Company Limited is a joint venture between the
Aditya Birla Group, one of the largest business houses in India and Sun Life
Financial Inc., a leading international financial services organisation. The
local knowledge of the Aditya Birla Group combined with the expertise of
Sun Life Financial Inc., offers a formidable protection for your future.
Birla Sun Life Insurance (BSLI), in its five successful years of operations,
has contributed significantly to the growth and development of the life
insurance industry in India. It pioneered the launch of unit linked life
insurance plans amongst the private players in India. It was the first player
in the industry to sell its policies through the banc assurance route and
through the internet. It was the first private sector player to introduce a pure
term plan in the Indian market. This was supported by sales practices which
brought a degree of transparency that was entirely new to the market. The
process of getting sales illustrations signed by customers and 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 build world class processing capabilities. BSLI has
covered more than a million lives since inception and its customer base is
spread across more than 1000 towns and cities 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. The company's current capital base
is Rs.520 crore.
About the Aditya Birla Group
The Aditya Birla Group has a turnover close to Rs.38,000 crore (as on 31
March 2008) and is one of the largest business houses in India. It enjoys a
leadership position in all the sectors in which it operates. With over 75
business units spanning the South East Asian belt, Africa, Canada and the
UK among others, it is reckoned as India's first multinational corporation.
The group is anchored by 72,000 employees and has seven lakh
shareholders,

with

market

capitalization

of

Rs.53,400

crore.

About Sun Life Financial Inc.


Sun Life Financial Inc. is a leading international financial services
organisation providing a diverse range of wealth accumulation and
protection products and services to individuals and corporate customers.
Tracing its roots back to 1865, Sun Life Financial and its partners today
have operations in key markets worldwide, including Canada, the United
States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia,
India, China and Bermuda. As of 31 March 2008, the Sun Life Financial
group of companies had total assets under management of US$ 343 billion.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under ticker symbol "SLF".

PRODUCT PROFILE

Individual Life
Protection

Birla Sun Life Term Plan


Premium Back Term Plan

Saving
Birla Sun Life Insurance Gold-Plus
Supreme Life
Dream Plan
Classic Life Premier
Simply Life
Prime Life Premier
Prime Life
Life Companion
Flexi Cash Flow
Flexi Save Plus
Flexi Life Line
Single Premium Bond

Retirement

Flexi Secure Life Retirement Plan II

Children
Children's Dream Plan

Rural
Bima Kavach Yojana

Riders
Accidental Death and Dismemberment Rider
Term Rider
Critical Illness Rider
Waiver of Premium
Critical Illness Plus Rider
Critical Illness - Woman Rider

Retirement
Our Retirement Plans allow you to meet your expenses and build a nest
egg, which gives you the freedom to live life to the fullest even after
retirement.

The post retirement years can be the best years of your life. Time to do
things you couldn't have done while you were working. A right financial
planning makes your post retirement years truly golden . Our Sun Life
secure Life II assures you just that.

PRODUCTS
Insurance Plans
Life is unpredictable. But in face of adversity, our
responsibilities towards our parents, children and loved ones
need not be compromised. Insurance planning equips you to
smooth out the uncertainties and adversities that life might send
your way, so that the best that life has to offer, secure in the
knowledge that your beloved ones are well provided for.
BSLI offers a complete range of insurance products
1. Protection Plans
2. Savings Plans
3. Child Plans
4. Investment Plans
5. Retirement Plans
6. Group Plans
7. Rural Plans
8. Plans for NRIs
9. Keyman Plans
10. Riders

Protection Plans

BSLI offers LifeGuard - a set of pure protection plans. Choose


from amongst three different product structures to insure your
life and provide total security to your family, at a very
affordable cost.
Level Term Assurance with return of premium
On death the entire sum assured will be paid.

On maturity, all the premiums paid will be returned.

Level Term Assurance without return of premium

On death the entire sum assured will be paid.


No survival or maturity benefits.

You can also enhance the above two policies by adding Accident
& Disability Benefit Rider and Waiver of Premium Rider (WOP) .
Level Term Assurance - Single premium:

On death the entire sum assured will be paid.


No survival or maturity benefits

Savings Plans

BSLI offers a variety of policies that give you the benefits of


protection and the opportunity to save for important assets or
events, like a home, a car or a wedding.

A regular premium unit-linked insurance plan with an assurance


of Capital Guarantee# with the added advantage of flexible
liquidity option. An ideal plan for long term planning with the
benefit of liquidity.
The key features of the plan are:
Flexibility to choose a specific level of protection (Sum
Assured), based on a multiple of the annual premium. You
can also choose the term of the plan.
At the end of the term, the higher of the value of units or
the guaranteed value* is paid. On death, Sum Assured
along with the higher of value of units or the guaranteed
value is payable.
Facility to make withdrawals from the 6th policy year
onwards till the end of the policy term. Every year
withdraw up to 10% of the value of units.
Additional credits payable as a percentage of the initial
annual premium are paid along with the death or maturity
benefit.
Additional insurance for 10 years after the maturity, for an
amount of 50% of the Sum Assured.

Flexibility to make additional investment with the help of


the top-up facility.
Flexibility to increase / decrease your annual premium
amount
Facility of Automatic Premium Payment- With this facility
you can take a temporary break from premium payment. **
Total transparency with the premium allocations, and other
charges declared upfront.
The guaranteed value of the unit fund is the value of all
invested premiums (premiums net of all charges) along
with the declared bonus interests.
** With Automatic Premium Payment facility, you can avail a
temporary break from premium payment for a maximum of 1
year. This facility is available once if the premium paying
term is less than 15 years and twice, if it is 15 years or more.
You can also enhance your policy by adding Accident &
Disability Benefit Rider , Waiver of Premium Rider and
Critical Illness Rider .

A regular premium unit-linked insurance plan with an assurance


of Capital Guarantee# An ideal plan for your long-term savings
and protection requirement.

The key features of the plan are :

Flexibility to choose a specific level of protection ( Sum


Assured), based on a multiple of the annual premium. You can
also choose the term of the plan.

At the end of the term, the higher of the value of units or


the guaranteed value* is paid. On death, Sum Assured along
with the higher of value of units or the guaranteed value is
payable

Additional credits payable as a percentage of the initial


annual premium are paid along with the death or maturity
benefit.

Additional insurance for 10 years after the maturity, for


an amount of 50% of the Sum Assured.

Flexibility to make additional investment with the help


of the top-up facility.

Flexibility to increase / decrease your annual premium


amount

Facility of Automatic Premium Payment- With this


facility you can take a temporary break from premium
payment.

Total transparency with the premium allocations, and


other charges declared upfront.

The guaranteed value of the unit fund is the value of all


invested premiums (premiums net of all charges) along with
the declared bonus interests.
With Automatic Premium Payment facility, you can avail a
temporary break from premium payment for a maximum of 1
year. This facility is available once if the premium paying
term is less than 15 years and twice, if it is 15 years or more.
The capital guarantee is applicable only on the invested
premium and the declared bonus interests.
You can also enhance your policy by adding Accident &
Disability Benefit Rider, Waiver of Premium Rider and Critical
Illness Rider.

A unit-linked insurance plan with an assurance of Capital


Guarantee which offers you the benefit of a limited premium
payment term. An ideal plan for protection with wealth creation
that offers the flexibility of a limited premium paying term.
Flexibility to choose a premium payment term of 5, 7 or 10
years for a maturity term of 10, 15 or 20 years respectively.
Flexibility to choose a specific level of protection (Sum
Assured), based on a multiple of the annual premium.
At the end of the term (maturity), the higher of the value of
units or the guaranteed value* is paid. On death, Sum Assured
along with the higher of value of units or the guaranteed value
is payable.

Additional credits payable as a percentage of the initial


annual premium are paid along with the death or maturity
benefit.
Facility to make withdrawals from the 6th policy year
onwards till the end of the policy term. Every year withdraw
up to 10% of the value of units
Flexibility to make additional investment with the help of the
top-up facility.
Flexibility to increase / decrease your annual premium amount
Total transparency with the premium allocations, and other
charges declared upfront.
The guaranteed value of the unit fund is the value of all
invested premiums (premiums net of all charges) along with
the declared bonus interests.
The capital guarantee is applicable only on the invested
premium and the declared bonus interests.
You can also enhance your policy by adding Accident &
Disability Benefit Rider and Critical Illness Rider.

Presenting Premier Life The Preferred plan for the Preferred


Customer. The key features of the plan are:
Limited premium payment option: Choose from among a 3, 5,
7 or 10 year premium paying term.

Choice of sum assured: Choose a sum assured, which is a


minimum multiple of 1 and a maximum multiple of 25 times
the annual contribution.
Additional allocation of units on a periodic basis.
Facility to top-up your investment any time you have surplus
funds.
Choose from among four funds, based on your investment
objective and risk appetite.
Choice to switch between investments options (4 free switches
every policy year).

Flexibility to decrease your sum assured.


Add-on riders to protect you against any eventuality.
Loans against the policy.
You can also enhance your policy by adding Critical Illness
Rider, Accident & Disability Benefit Rider.

Presenting Life Time unit linked plans that meets your changing needs
over a lifetime. These solutions have been developed to meet your savings, protection
and

investment

needs

at

every

stage

in

life.

Protection

Choose a specified level of protection (available only with


LifeTime).

Two levels of Sum Assured to choose from (available only


with LifeTime II).

Flexibility to increase or decrease your sum assured .

Add-on riders to protect you against any eventuality.

Retirement Plans

Life Expectancy has been rising rapidly and today you can
expect to live longer than your earlier generations. For you, this
increase will mean a longer retirement life, stretching into a
couple of decades. BSLI Retirement Solutions that combine the
best of insurance and investment. These solutions are developed
to ensure your peace of mind for the years to come.
1.

Why plan for retirement?

2.

How much should I set aside for retirement?

3.

The impact of inflation on your retirement savings

4.

Why plan early?

5.

About Annuities

Why plan for retirement?


For too many people, the joy of retirement after years of
hard work is eclipsed by the financial uncertainties that it
brings. Despite all the planning and saving, you can never sure
whether your money will last a lifetime. Retirement planning
offers a way to ensure a more enjoyable, stress free tomorrow. A
prudent plan will ensure that increasing life expectancy, higher
inflation and increasing taxes do not eat away into your hard
earned savings.

How much must I set aside for retirement?


To ensure a comfortable retired life, you would be wise to
invest money into additional avenues like pension plans. How
much you need to invest can be answered by answering some
questions such as:
1. How long do you have to save that amount before
retirement?
2. Where can you invest your retirement money?
3. How

much

investments?

risk

are

you

willing

to

take

on

your

Group Solutions

In an era of competitive parity, the only asset that makes a


decisive difference between corporate success and failure is the
quality of human capital. Employee benefits have proven to be
an excellent tool to optimize the retention of talent and improve
an organizations bottom-line. The quality of an organizations
employee benefits establishes and maintains a company's image
as a caring employer. Optimum care of employees is a long-term
investment that results in a sustained competitive advantage for
an organization in the times to come.
BSLI Group Solutions Advantage:
An integrated basket of employee benefits solutions that
offer incomparable flexible benefits.
Sound investment management that focuses on safety,
stability and profitability of the portfolio.
Personalized financial planning for your employee that
takes care of his/her changing financial needs at every
stage of life.
Quality service initiatives and transparency across all
operations, promising superlative operational efficiency.

Group Term Assurance : Helps provide affordable cover to


members of a group.
Group Gratuity Plan : Helps employers fund their statutory
gratuity obligation in a flexible and hassle-free manner.
Group Superannuation Plan : A flexible scheme (defined
benefit and defined contribution) to provide a retirement kitty
for each member of the group.
Group Term Assurance:
BSLI flexible group term solution helps provide affordable
cover to members of a group. The cover could be uniform or
based on designation/rank or a multiple of salary, and can be
extended to all employees between the ages of 18 and 65 years.
The benefit under the policy is paid on the event of the
members death to the beneficiary nominated by the member. It
is a one-year renewable policy where one master policy covers
all proposed employees comprising the group, with a minimum
group size of 25 persons. New members can join the group and
outgoing members can leave the group at any point during the
policy term.

4.AXIS BANK ON 7 Ps FRAMEWORK:Once the marketing strategy is developed, there is a "Seven P Formula" that should be
used to continually evaluate and reevaluate your business activities. These seven are:

Product
Price
Promotion
PRODUCT:To begin with, develop the habit of looking at your product as though you were an
outside marketing consultant brought in to help your company decide whether or not it's
in the right business at this time. Ask critical questions such as, "Is the current product or
service, or mix of products and services, appropriate and suitable for the market and the
customers of today?"Develop a habit of assessing your business honestly and asking,
Are these the right products or services for our customers today?
Compared to your competitors, is your product or service superior in some significant
way to anything else available? If so, what is it? If not, could you develop an area
of superiority? Should you be offering this product or service at all in the current
marketplace?
Product variety, quality and its features.
Is there a market for the service on offer?
Is the market growing or shrinking?
Is the service new or established?
The competition prevailing in the market for the service on offer?
The USP of the product. Products and Services on offered by AXIS Bank:
Accounts
Easy Access Accounts
Prime Savings Account

Salary Account
Womens Saving Account
Senior Privilege Account
Defense Salary Account

Trust & NGO Savings Account


Azzadi No frills
RFC (D) Account
Pension savings Account.
Deposits:
Fixed Deposits
Recurring deposits
Encash 24
Tax Saver Fixed Deposits
Loans:
Home loan
Personal loan
Loan Against Property
Loan Against Security
Car Loans
Study Loans
Two Wheeler Loan

Consumer Loan
Investments:
Online Trading
Mutual Funds
Fixed Income
Depository Services
E Depository Services
Insurance:
Health Insurance
Family Health
Health Guard
SMART PRIVIELAGE
AXIS DIRECT
CURRENT ACCOUNT
NRI SERVICES

PRICES:The second P in the formula is price. Develop the habit of continually examining and
reexamining the prices of the products and services you sell to make sure they're still
appropriate to the realities of the current market. Sometimes you need to lower your
prices. At other times, it may be appropriate to raise your prices. Many companies have
found that the profitability of certain products or services doesn't justify the amount of
effort and resources that go into producing them. By raising their prices, they may lose
a percentage of their customers, but the remaining percentage generates a profit on every
sale. Could this be appropriate for you? Sometimes you need to change your terms and
conditions of sale. Sometimes, by spreading your price over a series of months or years,
you can sell far more than you are today, and the interest you can charge will more
than make up for the delay in cash receipts. Sometimes you can combine products and
services together with special offers and special promotions. Sometimes you can include
free additional items that cost you very little to produce but make your prices appear far
more attractive to your customers. In business, as in nature, whenever you experience
resistance or frustration in any part of your sales or marketing activities, be open to
revisiting that area. Be open to the possibility that your current pricing structure is not
ideal for the current market. Be open to the need to revise your prices, if necessary, to
remain competitive, to survive and thrive in a fast-changing marketplace. AXIS bank has
developed innovative strategies against its competitors with respect to pricing by use of
technology. The use of technology is the strategic differentiator for AXIS bank that helps
in cost minimization and creating efficiency for the customer. The creation of
centralized processing system linking all its branches has been a major strategic move in
this regard.
The pricing mechanism and features of various HDFC products are as follows:Home Loans
Floating rates
For loan of up to five years for amounts between Rs one lakh and Rs 50 lakh is at9.25
per cent (9 per cent).
The rate for loans of 5 years and above up to 10 years is now at 9.75 per cent (9.50
per cent).
The interest rate for above ten years now stands at 10.25 per cent (10 per cent).

FIXED INCOME:Investment Plans


:Investors can choose from cumulative and non-cumulative bond options.

Interest Rate
:Bonds will bear interest @ 8.00% per annum and are payable half-yearly.
Minimum Investment Amount
:The Bonds will be issued for a minimum amount of Rs 1,000 (face value) and in
multiples thereof
Maximum Investment Amount
:There is no upper limit for investment in the Bonds.
Maturity
:The Bonds shall mature on the expiration of six years from the date of issue.
Taxation
:Interest on the Bonds will be taxable under the Income Tax Act, 1961 as applicable
according to the relevant tax status of the Bonds holder. Presently there is no tax
deduction at source at the time of interest payment.

Promotion:The third habit in marketing and sales is to think in terms of promotion all the time.
Promotion includes all the ways you tell your customers about your products or services
and how you then market and sell to them. Small changes in the way you promote
and sell your products can lead to dramatic changes in your results. Even small
changes in your advertising can lead immediately to higher sales. Axis bank has devised
an aggressive promotional strategy through its diversified distribution mix which
includes tied agencies and alternate channels like banks, brokers, telemarketing, direct
sales force, internet advertizing .some of the promotional activities undertaken are:
Cross selling exercises
Organizing school level painting competitions in order to create awareness about the
environmental concerns and the wild life to promote kids advantage account.
Wheels of fortune - this promo are targeted at all those customers who avail a personal
loan, car or a two wheeler loan. There will be lucky draw at the end of the promo and the
winners would get exotic prizes.
Personalized promos by sending mailers about various products on offer to all those who
come in contact during the mass promotion strategies. The promotional strategies are

carried out with an objective of positioning axis bank as a one stop financial
super market. The focus of the promotions are not just confined to acquisition of new
products but also extends to creating product awareness, enhancing usage, and also
provide value add to the customers for their faith and loyalty. these promotions are
scientifically designed based on data analysis and data mining in order to have maximum
impact on the target audience.

Positioning:The next P is positioning, the habit of thinking continually about how you are positioned
in the hearts and minds of your customers.
How do people think and talk about you when you're not present?
How do people think and talk about your company?
What positioning do you have in your market, in terms of the specific words people use
when they describe you and your offerings to others?
AXIS Bank has positioned its branches in all the strategic position so that it is easily
accessible to maximum customer. It has also come up with some phone banking
centre and centralized collection and payment hub.
CENTRALISED PHONE BANKING CENTRE
The Banks Centralized Phone Banking Centre provides customers across the country
Access to the Bank over the phone, handling multiple queries in about 7000 calls per
day.
CENTRALISED COLLECTION AND PAYMENT HUB
The Banks Centralized Collection and Payment Hub (CCPH) manages the entire
collection and payment activity under the Banks Cash Management Services (CMS)
across the country, handling on an average about Rs.5000 crores per month on the
collection front and aboutRs.1500 crores per month on the payment front.

ABOUT COMPETITORS
Major players in banking industry with whom axis bank is competing now:-

1.HDFC
2.ICICI
3.IDBI.

4.HSBC.
5.SBI.
6.YES BANK.
7.INDIAN OVERSEAS BANK.

DATA ANALYSIS AND INTERPRETATION


Ques. Which Birla Sun Life Scheme does you have?

Inference
On the basis of above analysis it has been concluded that around 68% of the policy
holders are having life plan, 22% of them are having Retirement plan and rest of them
are having the health plan.

Question. Are you satisfied with the Insurance plan you have?

Inference
On the basis of the analysis it has been concluded that around 72%of the people are
satisfied with plan they and rest if them are not satisfied.

Ques. Are you satisfied with the services provided by the company
regarding new plans and schemes?

Inference
On the basis of the above analysis it has been concluded that around 82% of the policy
holders are satisfied with the services provided by the company and rest of them are
not satisfied.

Ques. Are you interested to make more investments in BSLI ?

Inference
On the basis of the above analysis it has been concluded that around 67% of the
policyholders are interested to make more investments in BSLI and rest of them are
not interested.

Ques. Have you any other Insurance Plan apart from BSLI?

Inference
From the above analysis it has been concluded that around 89% of policy holders are
having other insurance plans apart from BSLI , in which around 60 % are having
LIC insurance plans, 11% are having Bajaj Allianz, 9% are having Birla Sunlife, 8%
are having ICICI Pru. and 12% are having other company insurance plans.

Ques. If you get any attractive plan than are you ready to switch over?

Inference
On the basis of the above analysis it has been concluded that around 82% of the policy
holders are ready to switch over if they get good attractive insurance plan and rest of
them dont.

CONCLUSION
The market potential for private insurance companies is found to
be greater in the long run as most of the Indians are of the
opinion that, private insurance companies would be able to
perform well in the future. The private and foreign insurance
companies have to take immediate steps in appointing more
number of agents and/or advisors in addition to the employees as
it has been found out that agents are the best channel to reach
the general public regarding selling of insurance products. The
private and foreign insurance companies have to concentrate on
the factors like 'Prevention of Loss', 'Assured Returns' and 'Long
term Investment'. They can also focus on an insurance amount of
Rs. 1 2 lakhs with 'money back policies'. Hence, the market
has potential. The private and foreign insurance companies that
are taking immediate steps can tap it easily & rapidly.

SUGGESTIONS
1)

Even though most of the policy holders are satisfied with


policies, plans they have but some new attractive insurance plans should
be introduce to bind them not to switch over to other companies
insurance plans.

2)

The company should find out the no. of people who are not
having any of the insurance plans through an intensive market research
and motivate them to get insured.

3)

Leveraging technology to service customers quickly, efficiently


and conveniently.

4)

Developing and implementing superior risk management and


investment strategies to offer sustainable and stable returns to our
policyholders.

5)

Company should target each and every class of the society

6)

Company should provide full information to the customers


before targeting so they can take interest

LIMITATIONS
Some of the respondents were not cooperative.
Some respondents were hesitating to give business details.
Biasness is another limitation that the scope of the survey.
The reliability and scope of survey greatly relies on the cooperation
of the respondents.

BIBIOLIOGRAPHY

www.BirlaSunlife.com
www. irda. gov. in
Birlasunlife New Advisor Book
www.google.com

Questionnaire
Name:...............................

Age:..

Ques.1 Which Birla Sun Life Scheme does you have?


(a) Life

(b) Retirement

(c) Health

Ques.2 Are you satisfied with the Insurance plan you have?
(a) Yes

(b) No

Ques.3 What attract you towards Birla Sun Life Plans?


(a)
(b)
(c)
(d)
Ques.4 Are you satisfied with the services provided by the company
regarding new plans and schemes?
(a) Yes

(b) No

Ques.5 Are you interested to make more investments in Birla Sun Life ?
(a) Yes

(b) No

Ques.6 Have you any other Insurance Plan apart from Birla Sun Life?
(a) Yes

(b) No

Ques.7 If yes, then of which Life Insurance Company?


(a) LIC

(b) Bajaj Allianz

(c) Birla Sunlife

(d) Reliance

(e) Others
Ques.8 If you get any attractive plan than are you ready to switch over?
(a) Yes

(b) No

Suggestions: