project

1. A STUDY ON
Savings Plans
At
Birla Sun Life Insurance Ltd
Submitted in partial fulfillment of
the requirement for the award degree of
MASTER OF BUSINESS ADMINISTRATION
TO
DEPARTMENT OF COMMERCE AND BUSINEESS
MANAGEMENT OSMANIA UNIVERSITY
SUBMITTED BY
Ch. Sridhar
(07107218)
UNDER THE GUIDENCE OF
Miss. Prathima
Asst. Professor
MALLA REDDY INSTITUTE OF MANAGEMENT
(Affiliated to Osmania University)
Maisamma guda , Dhulapally, Secunderabad - 500014
2007 – 09
1

2. DECLARATION
I here by declare that this project report entitled “SAVINGS PLANS” for Birla
Sun Lie Insurance , has been prepared by me during the year 2007-2009 in partial
fulfillment for the award of degree of MASTER OF BUSINESS ADMINISTRATION,
OSMANIA UNIVERSITY,HYD
I also declare that this project report is the result of my own effort and has been
has submitted to any other University for the award of any degree in diploma.
Ch. Sridhar
(07107218)
2

3. ACKNOWLEDGEMENT
I Would like to express my sincere thank to my principle Mr.
Srinivasa Sastry who gave me the opportunity for understanding the
project.
I Would like to express my sincere thank to my Project Guide at
Birla Sun Life Insurance Mr. J.V. Ramana who gave me the opportunity
for understanding the project.
I would like to express my special thanks to Mr. Ravi Kumar, Vice Principal
for his help and encouragement and I am also thankful to my project guide
Miss. Pratima for her Valuable suggestions during the preparation of the
project work.
Ch. Sridhar
(07107218)
3

4. ABSTRACT
A state monopoly has little incentive to innovative or offers a wide range of
products. It can be seen by a lack of certain products from LIC’s portfolio and lack of
extensive risk categorization in several GIC products such as health insurance. More
competition in this business will spur firms to offer several new products and more
complex and extensive risk categorization. British rule also introduced general insurance
in India. Initially, this business was conducted through British and other foreign insurance
companies.
The first general insurance company in India ‘TRITAN’ general insurance company
limited’ was established at Calcutta in 1950. the first such type of company was
established by Indians in Mumbai in 1907 with the name ‘Indian mercantile insurance
company limited’ at the time of independence, about 40% of the total general insurance
business in India was done buy the British and other foreign insurance companies, but
after independence this percentage continuously declined. In 1971, the government took
over the management of all general insurance companies. To study the various products
distributed as per saving plans of BSLITo understand the marketing strategies followed by
BSLI.To evaluate analyze perception of customer an saving plans.
If the individual already set out his financial goals for the future then life’s uncertainty
may Cause him to change them over a period of time. While the need to protect his family
and his capital his priority. He/She may also want to earn enough on his/her investment,
so meet their wealth creation reqrments. Moreover the road to one, financial goals
mayhavemany twists and road blocks.
4

5. INDEX
S.NO Chapter Name Page No
1
CHAPTER - I
a. Introduction
b. Need of the study
c. Objectives of the study
d. Methodology
e. Limitations
1
2 CHAPTER – II
Review of literature
8
3 CHAPTER – III
f. Industry Profile
g. Company profile
27
4 CHAPTER – IV
h. Data Analysis & Interpretation 34
5
CHAPTER – V
i. Findings & Suggestions
j. Conclusions
64
6. BIBLIOGRAPHY 66
7 QUESTIONNAIRE 67
INTRODUCTION
5

6. INSURANCE:
6

7. A state monopoly has little incentive to innovative or offers a wide range of
products. It can be seen by a lack of certain products from LIC’s portfolio and lack of
extensive risk categorization in several GIC products such as health insurance. More
competition in this business will spur firms to offer several new products and more
complex and extensive risk categorization.
It would also result in better customer services and help improve the variety
and price of insurance products. The entry of new players would speed up the spread of
both life and general insurance. Spread of insurance will be measured in terms of
insurance penetration and measure of density.
With the entry of private players, it is expected that insurance business roughly
400 billion rupees per year now, more than 20 per cent per year even leaving aside the
relatively under developed sectors of health insurance, pen More importantly, it will also
ensure a great mobilization of funds that can be utilized for purpose of infrastructure
development that was a factor considered for globalization of insurance.
More importantly, it will also ensure a great mobilization of funds that can be
utilized for purpose of infrastructure development that was a factor considered for
globalization of insurance.
With allowing of holding of equity shares by foreign company either itself or through its
subsidiary company or nominee not exceeding 26% of paid up capital of Indian partners
7

8. will be operated resulting into supplementing domestic savings and increasing economic
progress of nation. Agreements of various ventures have already been made to be
discussed later on in this paper.
It has been estimated that insurance sector growth more than 3 times the growth
of economy in India. So business or domestic firms will attempt to invest in insurance
sector. Moreover, growth of insurance business in India is 13 times the growth insurance
in developed countries. So it is natural, that foreign companies would be fostering a very
strong desire to invest something in Indian insurance business.
Most important not the least tremendous employment opportunities will be
created in the field of insurance which is burning problem of the present day today issues.
8

9. GENERAL INSURANCE:
British rule also introduced general insurance in India. Initially, this
business was conducted through British and other foreign insurance companies. The first
general insurance company in India ‘TRITAN’ general insurance company limited’ was
established at Calcutta in 1950. the first such type of company was established by Indians
in Mumbai in 1907 with the name ‘Indian mercantile insurance company limited’ at the
time of independence, about 40% of the total general insurance business in India was done
buy the British and other foreign insurance companies, but after independence this
percentage continuously declined. In 1971, the government took over the management of
all general insurance companies.
LIFE INSURANCE:
The Britisher’s introduced life insurance to India. A British firm in 1818
established the oriental life insurance company at Calcutta. In 1823, Bombay Life
Insurance Company was established at Mumbai and in 1829 madras equitable life
insurance society was established at madras (Chennai). Till 1871, these companies
collected 15-20 percent more premiums from Indian as they treated Indian’s living
standard below the normal, in 1871, Bombay mutual life assurance society was established
which started life insurance of Indians on general premium rate for the first time. Indian
insurance company act was implemented which aimed at collecting statistical information
related to insurances of Indians and foreigners. In 1938, all previous acts were integrated
and insurance act 1938 came into force. After independence, this act was amended in
1950. Till 1956, 154 Indian, 16 non-Indian insurance companies and 75 provident
committees were working in life insurance business of the country.
9

10. OBJECTIVES
To study the various products distributed as per saving plans of BSLI
1. To understand the marketing strategies followed by BSLI.
2. To evaluate analyze perception of customer an saving plans.
10

11. NEED OF THE STUDY
Need and importance of saving plan :
Through we have set our financial goals for the future, life’s uncertainty may
cause us to change turn over a period of time. While the need to protect our family and our
capital is our priority. Well Also a times wanted to earn enough on our investments, so as
to meet our wealth creation requirements. We more over, feel that balancing the needs of
Saving and protection are major consideration in our financial planning. Although pour
life, we have certain responsibilities which have to be fulfilled as a responsible
individually. We feel our family happiness is also ensured, for which we need a seeking
plan that offer us both , saving and protection.
11

12. RESERCH METHODOLOGY
 Population: Customers in twin cities i.e. Hyderabad and Secundrabad.
 Source of Data: The two important sources of data are the Primary and
Secondary Data
The Primary Data is collected through survey method with the help of
Questionnaire and Personal Interview.
The Secondary Data is collected from Journals, Books, Articles and
Websites.
 The information is collected from survey done in Hyderabad.
 Sample Unit: The Sample unit consists of Customers
 Sample Size: The sample size 100 customers.
 Sample Method: The sample method used is non probability. In Non
Probability Sampling the chance of any particular unit being in the population
being selected is unknown.
 Procedure: The procedure used for sampling is convenient sampling, in this
method the sample unit is chosen primarily on the basics of his convenience of
investigator.
 The Survey consists of structured Questionnaire
12

13.  Includes both open ended and close ended questions
LIMITATIONS
 The finding of the study can not be generalized.
 There may be sampling as well as statistical errors.
 Since small sample size of 100 is taken, the sample is increased by two time to use
chi-square test
13

14. REVIEW OF LITERATURE
If the individual already set out his financial goals for the future then life’s
uncertainty may Cause him to change them over a period of time. While the need to
protect his family and his capital his priority. He/She may also want to earn enough on
his/her investment, so meet their wealth creation reqrments. Moreover the road to one,
financial goals mayhavemany twists and road blocks.
All through one’s life, he/she would have certain responsibilities his children’s education,
Higher Schooling, marriage expenses and many more such expnses.As a responsible
undividuak it,s Undoubtedly his/her formost concern to insure that their family;s
happinesses is insured for the Times to come and secured fro any eventuality that might
come up for thus they may think of a Plan that offers them boath, savings and
protection.
For the above reasons saving plans offer the coustmer with solutions the help them plan
their Better future. They helping achieving benfits such as achieving their long term
financial goal With benfit, liquidity, to gain enough on the investment of the individual, a
benfit of capital Gurrante etc…
14

15. GENERAL INSURANCE:
British rule also introduced general insurance in India. Initially, this
business was conducted through British and other foreign insurance companies. The first
general insurance company in India ‘TRITAN’ general insurance company limited’ was
established at Calcutta in 1950. the first such type of company was established by Indians
in Mumbai in 1907 with the name ‘Indian mercantile insurance company limited’ at the
time of independence, about 40% of the total general insurance business in India was done
buy the British and other foreign insurance companies, but after independence this
percentage continuously declined. In 1971, the government took over the management of
all general insurance companies.
General insurance business in the country was nationalized with effect from 1
January, 1973 by the general insurance Business (Nationalization) act, 1972.
More than 100 non-life insurance companies including branches of
foreign companies operating with in the country were amalgamated and grouped into four
companies, viz., the national insurance company limited the new India assurance company
limited the oriental insurance company limited and the united India insurance company
limited with head office at Kolkata, Mumbai, New Delhi and Chennai, respectively.
General insurance corporation (GIC) which was the holding company of the four public
sector general insurance companies has since been delinked from the later and has been
approved as the ‘Indian Reinsure’ since 3 November 2000.the share capital of GIC and
15

16. that of the four companies are held by the government companies registered under the
companies act.
The general insurance business has grown in spread and volume after
nationalization. The four companies have 2,699 branch offices, 1,360 divisional offices
and 92 regional offices spread all over the country. GIC and its subsidiaries have
representation either directly through branches or agencies in 16 countries and through
associate/locally incorporated subsidiary companies in 14 other countries.
The net profit of the industry during 2001-200 amounted to 12,229 crore,
as against Rs.10, 772 crore during 2000-2001 representing a growth of 1352 percent over
the premium income of last year. Before nationalization, insurance business was
centralized in urban areas only. GIC with its central office in Pune and seven zonal offices
at Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Kanpur and Bhopal operates through
100 divisional offices in important cities and 2048 branch offices. As on 31 march, 2003
GIC had 9.88 lakh agents spread over the country. GIC also entered the international
insurance market and opened its offices in England, Mauritius and Fiji.
The corporation has registered a joint venture company-life insurance corporation
(Nepal) limited in Katmandu on 26 December, 2000 in collaboration with a local industrial
group. An off-shore company GIC (Mauritius) off-shore limited has also been registered
on 19 January, 2001 to tap the Africian insurance market.
16

17. The total business of GIC during 2002-2003 was Rs 1, 76, 088 crore a sum
assured under 239.3 lakh policies. GIC group insurance business during 2002-2003 was
Rs.1645 crore providing covers to 18.32 lakh people
LIFE INSURANCE:
The Britisher’s introduced life insurance to India. A British firm in 1818
established the oriental life insurance company at Calcutta. In 1823, Bombay Life
Insurance Company was established at Mumbai and in 1829 madras equitable life
insurance society was established at madras (Chennai). Till 1871, these companies
collected 15-20 percent more premiums from Indian as they treated Indian’s living
standard below the normal, in 1871, Bombay mutual life assurance society was established
which started life insurance of Indians on general premium rate for the first time. Indian
insurance company act was implemented which aimed at collecting statistical information
related to insurances of Indians and foreigners. In 1938, all previous acts were integrated
and insurance act 1938 came into force. After independence, this act was amended in
1950. Till 1956, 154 Indian, 16 non-Indian insurance companies and 75 provident
committees were working in life insurance business of the country.
On January 19, 1956 central government tool over the charge of all these 245 Indian and
foreign insurance companies and on September 1, 1956 these companies were
nationalized. Under an act passed by the parliament on September 1, 1956 life insurance
Corporation of India was established with the capital of Rs. 5 crores given by the
17

18. government of India. Malhotra committee, constituted off making recommendations for
insurance sector, in its report submitted in January 1994, recommended enhancing the
capital base of Rs. 5 crore to Rs. 200 crore fro LIC, but the Government did not accept it.
LIC was established to spread the message of life insurance savings
for nation building activities. Keeping in view the recommendations of administrative
Reform commission. Indian life insurance corporation accepted a few important objectives
in 1974, which are as follows: to extend the sphere of life insurance and to cover every
person eligible for insurance under insurance umbrella. Special attention will be provided
to give life insurance cover to economically weaker section of the society on appropriate
and bearable cost secondly, to mobilize maximum savings of the people by making
insured savings more attractive thirdly, to ensure economic use of resources collected from
policy holders and finally, under changing social and economic structure of the country
efforts will be made to meet the life insurance requirements of
Various stratas of the society.
Reforms in insurance sector:
Insurance sector constitutes an important segment to financial market in India and
plays a predominant role in the formation of capital in the country. The reforms in the
insurance sector started with the enactment of insurance regulatory and development
authority act 1999. The act paved the way for the entry of private insurance companies into
the insurance market and also constitution of insurance Regulation and Development
Authority (IRDA).
18

19. Insurance Regulatory and Development Authority:
The insurance regulatory and development authority was constituted on 19 April
2000 to protect the interest of the holders of insurance policies and to regulate, promote
and ensure orderly growth of the insurance industry. The authority consists of a
chairperson, four whole-time members and part-time members.
For regulations the insurance sector, the authority has been issuing regulations
covering almost the entire segment of insurance industry namely, regulation on insurance
agents, solvency margin, re-insurance, registration of insurers, obligation of insurers to
rural and social sector, accounting procedure, etc.
Insurance (amendment) act, 2002:
The government, functioning of the opened up insurance sector, has enacted
insurance act, 2002. The act relates to introduction of brokers as intermediaries, allowing
more flexile in the eligibility qualification for corporate agents, allowing more flexible
mode of payment of premium through credit cards, smart cards, over interknit, etc. Change
in the allocation of surplus between share holders and policy holders, direct entry of co-
operatives in the insurance sector and some other consequential amendments which are of
a technical nature for the smooth functioning of the opened up sector.
19

20. General Insurance Business (Nationalisation) Amendment Act, 2002:
With the enactment of IRDI act, 1999 it was necessary to nominate Indian re-
insurer under insurance act, 1938. The government decided that general insurance
companies should be declared as Indian Re-insurer. Since under the act, a re-insurer
cannot underwrite general insurance business.
Recommendations of Malhotra Committee for improving insurance
sector:
The government of India constituted a committee for recommending
improvements in insurance sector under the chairmanship of Dr. R. N. Malhotra, Ex-
Governer of RBI, in April 1993. On January 7, 1994 the committee submitted its
recommendations to the finance minister. Some of the important recommendations are as
follows.
20

21. Liberalization of insurance industry:
The committee has recommended for liberalizing insurance industry:
 The private sector should also be permitted in insurance sector, but the same
company should not permitted to perform both life insurance and general
insurance business.
 The minimum paid-up capital for the now company should be Rs. 100 crore
included a minimum subscription of 26% and maximum of 40% from promoters.
 No other equity holder, excluding the promoters of private insurance companies,
Should be granted equity share exceeding 1% of total equity.
 Co-operative societies at state level should be permitted to perform business with
the minimum paid-up capital of Rs.100 crore
 Foreign insurance companies should be permitted to operate in India on selective
basis and they should be granted permission only of they perform business by
establishing a joint enterprise with Indian promoters.
21

22. Restructuring of insurance industry:
The committee also put recommendations for restructuring insurance industry:
 All the four associate companies of GIC should be granted permission to perform their
business independently and GIC should work only as Reinsurance Company.
 The existing share capital of GIC should be increased from Rs. 107.5 crore to Rs.200
crore, which should included 50% share of the government and the rest shares should
be opened for the general public (through a certain percentage of share should be
reserved for the employees of the corporation)
 The existing paid-up capital for all associate companies of GIC (which is at present
Rs.40 crore for every company and fully financed by GIC) should be increased up to
Rs.100 crore. The capital of all these companies should include the government share
of 50% and the remaining share should be opened for the general public.
 The committee also recommended to increase the paid-up capital of LIC form existing
level of Rs.5 crore to Rs.200 crore (again 50% for the government and rest for the
public)
22

23. Regulation of insurance business:
The committee has put following recommendations for regulation insurance business
 All old and new insurance companies should be regulating under insurance
act.
 Controller of insurance should be given all the responsibilities under insurance
act.
 Insurance regulatory authority (IRA) should be established in insurance sector
on the lines of SEBI and IRA should be granted complete functional
autonomy.
 IRA should have a permanent source for financing its activities and for this
IRA should be permitted to charge a levy of 0.5% on annual incomes of
insurance companies.
Rural insurance:
 New insurance companies entering into insurance industry should perform a minimum
predetermined insurance in rural sector and they should attain this limit compulsorily.
 Postal life insurance should be used to promote life insurance business in rural areas.
23

24. Insurance surveyors:
 License system for insurance surveyors should be abolished and insurance companies
should be granted permission to recruit the surveyors of their own
 At present, any claim of Rs.20,000 or above comes under the enquiry of the surveyor.
The committee has recommended extending this minimum limit on Rs.1 lakh.
 Insurance companies should be permitted to settle the claims upto Rs.1 lakh on
primary survey basis.
24

25. INSURANCE TODAY:
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI
Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and
recommend its future direction. The Malhotra committee was set up with the objective of
complementing the reforms initiated in the financial sector.
With the setup of Insurance Regulatory Development Authority (IRDA) the
reforms started in the Insurance sector. It has became necessary as if we compare our
Insurance penetration and per capita premium we are much behind then the rest of the
world. The table above gives the statistics for the year 2000.
With the expected increase in per capita income to 6% for the next 10 year
and with the improvement in the awareness levels the demand for insurance is expected to
grow. As per an independent consultancy company, Monitor Group has estimated a
growth form Rs.218 Billion to Rs.1003 Billion by 2008. The estimations seems achievable
as the performance of 13 life Insurance players in India for the year 2002-2003 (up to
October, based on the first year premium) is Rs.66.683 million being LIC the biggest
contributor with Rs. 59,187 million. As of now LIC has 2050 branches in 7 zones with
strong team of 5,60,000 agents.
25

26. IMPACT OF GLOBALISATION:
The introduction of private players in the industry has added colours to the dull
industry. The initiatives taken by the private players are very competitive and have given
immense competition to the on time monopoly of the market LIC. Since the advent of the
private players in the market the industry has seen new and innovative steps taken by the
players in the sector. The new players have improved the service quality of the insurance.
As a result LIC down the years have seen the declining in its career. The market share was
distributed among the private players.
Though LIC still holds 75% of the insurance sector the upcoming nature of
these private players are enough to give more competition to LIC in the near future. LIC
market share has decreased from 95% (2002-03) to 81% (2004-05). The following
company holds the rest of the market share of the insurance industry.
PRESENT SCENARIO OF GLOBALISATION :
In a tough battle to expand market shares the private sector life insurance
industry consisting of 14 life insurance companies at 26% have lost 3% of market share to
the state owned Life Insurance Corporation (LIC) in the domestic life insurance industry in
2006-07. According to the figures released by Insurance Regulatory & Development
Authority, the total premium of these 14 companies have shot up by 90% to Rs 19,471.83
crore in 2006-07 from Rs 10, 252 crore.
26

27. Though ICICI Prudential Life Insurance remained as the No 1 private sector life
insurance company during the year. Bajaj Allianz overtook ICICI Prudential in terms of
monthly market share in March, for the first time ever. Bajaj's market share among private
players in non-single premium for March stood at 29.1% vs. ICICI Prudential's 23.8%.
Bajaj gained 4.6 percentage point market share among private sector players for FY07.
Among other private players, SBI Life and Reliance Life continued to do well,
each gaining 4% market share in FY07. SBI Life's growth was driven by increasing
contribution from ULIP premiums. Another notable developments of the 2006-07
performance has been the expansion of retail markets by the life insurance companies.
Bajaj Allianz Life insurance has added 20 lakh policies while ICICI Prudential has
expanded over 19 lakh policies during the year.
With the largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per
cent annually and presently is of the order of Rs450 billion. Together with banking
services, it adds about 7 per cent to the country’s GDP.
Gross premium collection is nearly 2 per cent of GDP and funds
available with LIC for investments are 8 per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover while
health insurance and non-life insurance continues to be below international standards. And
this part of the population is also subject to weak social security and pension systems with
27

28. hardly any old age income security. This it is an indicator that growth potential for the
insurance sector is immense.
A well-developed and evolved insurance sector is needed for economic development
as it provides long term funds for infrastructure development and at the same time
strengthens the risk taking ability. It is estimated that over the next ten years India would
require investments of the order of one trillion US dollar. The Insurance sector, to some
extent, can enable investments in infrastructure development to sustain economic growth
of the country.
28

29. CHALLENGES BEFORE THE INDUSTRY:
New age companies have started their business as discussed
earlier. Some of these companies have been able to float 3 or 4 products only and some
have targeted to achieve the level of 8 or 10 products. At present, these companies are not
in a position to pose any challenge to LIC and all other four companies operating in
general insurance sector, but if we see the quality and standards of the products which they
issued, they can certainly be a challenge in future. Because the challenge in the entire
environment caused by globalization and liberalization the industry is facing the following
challenges.
The existing insurer, LIC and GIC, have created a large group of dissatisfied customers
due to the poor quality of service. Hence there will be shift of large number of customers
from LIC and GIC to the private insurers.
 LIC may face problem of surrender of a large number of policies, as new insurers will
woo them by offer of innovative products at lower prices.
 The corporate clients under group schemes and salary savings schemes may shift their
loyalty from LIC to the private insurers.
 There is a likelihood of exit of young dynamic managers from LIC to the private
insurer, as they will get higher package of remuneration.
29

30.  LIC has overstaffing and with the introduction of full computerization, a large number
of the employees will be surplus. However they cannot be retrenched. Hence the
operating costs of LIC will not be reduced. This will be a disadvantage in the
competitive market, as the new insurers will operate with lean office and high
technology to reduce the operating costs.
 GIC and its four subsidiary companies are going to face more challenges, because their
management expenses are very high due to surplus staff. They can’t reduce their
number due to service rules.
 Management of claims will put strain on the financial resources, GIC and its
subsidiaries since it is not up the mark.
 LIC has more than to 60 products and GLC has more than 180 products in their kitty,
which are outdated in the present context as they are not suitable to the changing needs
of the customers. Not only that they are not competent enough to complete with the
new products offered by foreign companies in the market.
 Reaching the consumer expectations on par with foreign companies such as better
yield and much improved quality of service particularly in the area of settlement of
claims, issue of new policies, transfer of the policies and revival of policies in the
liberalized market is very difficult to LIC and GIC.
30

31.  Intense competition from new insurers in winning the consumers by multi-distribution
channels, which will include agents, brokers, corporate intermediaries, bank branches,
affinity groups and direct marketing through telesales and interest.
 The market very soon will be flooded by a large number of products by fairly large
number of insurers operating in the Indian market.The existing level of awareness of
the consumers for insurance products is very low. It is so because only 62% of the
Indian population is literate and less than 10% educated. Even the educated consumers
are ignorant about the various products of the insurance.
 The insurers will have to face an acute problem of the redressal of the consumers,
grievances for deficiency in products and services.
 Increasing awareness will bring number of legal cases filled by the consumers against
insurers is likely to increase substantially in future.
 Major challenges in canalizing the growth of insurance sector are product innovation,
distribution network, investment management, customer service and educati
31

32. ESSENTIALS TO MEET THE CHALLENGES:
 Indian insurance industry needs the following to meet the global challenges
 Understanding the customer better will enable insurance companies to design
appropriate products, determine price correctly and increase profitability.
 Selection of right type of distribution channel mix along with prudent and efficient
FOS [Fleet on Street] management.
 An efficient CRM system, which would eventually create sustainable competitive
advantages and build a long-lasting relationship
 Insurers must follow best investment practices and must have a strong asset
management company to maximize returns.
 Insurers should increase the customer base in semi urban and rural areas, which offer a
huge potential.
 Promoting health insurance and using e-broking to increase the business.
32

33. INDUSTRY PROFILE
Insurance, in law and economics is form of risk management primarily used to hedge
agadefinedinst the risk of a contingent loss. Insurance is defined as the equitable transfer
of the risk of a potential loss, from one entity to another, in Exchange for a premium.
Insurer, in economics, is the company that sells the Insurance. Insurance rate is a factor
used to determine the amount, called the Premium, to be charged for a certain amount of
insurance coverage. Risk Management, the practice of appraising and controlling risk, has
evolved as a Discrete field of study and practice.
BRIEF history of Indian insurance industry:
The business of life insurance in India in its existing form started in India in The year
1818 with the establishment of the oriental life insurance company In Calcutta.
Some of the important milestones in the life insurance business in India are:
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 business.
1938: Earlier legislation consolidated and amended to by the insurance Act with
The objective of protecting the interest of the insuring public.
33

34. 1956:245 Indian and foreign and insurers and provident societies taken over by the
Central government and nationalized. Lice formed by an Act of parliament, viz. Lic Act,
1956, with a capital contribution of Rs.5crore 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.
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 insuring 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 Act, 1972 nationalized the general insurance
Business in India with effect from 1st
January 1973.
107insurers amalgamated and grouped in to 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. Gic incorporated as a
Company.
34

35. COMPANY PROFILE
Birla Sun Life insurance Company Limited (BSLI) is a joint venture
Between the Adyta Birla Group and the sun Life Financial Services of Canada. It started.
Operations in March 2001 after receiving its registration license from IRDA in January
2001.
BSLI, core strategy since inception has been to ’create value’ for all its stake
Holders. This was been driven through innovative and customer focused products and a
Multi channel distribution capability in individual and group insurance. The company
started its operation with the lunch of innovative.Unit linked insurance products, being the
first private life insurance company in India to do so. The company has geared up through
superior value creation in technology in fulfilling its aims to provide multiple products and
benefits, greater investments opportunities to provide the vast investor populace in India
with better liquidity and security.
The transition of the insurance industry in India from a public monopoly to a competitive
environment present interest in opportunities both to the insurance players as well as to the
customers. Birla Sun Life Insurance spot emerging tense and capitalized on this leader in
product innovation with new products designed to cater to specific customer needs.
The company has a clear trust on investment linked insurance products and believes in
maximizing investments return for the policy holders. Its unit linked products offered
varied investment option for policy holders to choose, based on their risk appetite. Birla
35

36. sun life insurance has been fully complying with its rural and social sector obligations.
Social and rural services network of the group being tapped for this purpose.
Its clients have already appreciated the company superior under writing processes and
infrastructure. Its direct sales force of more than 60000 high quality licensed insurance
subscribers in major cities and towns in India are the company’s flag bearers. The
company’s insurance advisors have qualified for the prestigious million dollars round table
(MDRT) cot and tot, one of the highest international honors in the life insurance
industries, in all the years of its operations.
 Birla sun life insurance pioneered the unique unit linked life insurance
solutions in India.
 Within 4 years of its lunch, birla sun life insurance has cemented its
position as a leading player in the private life insurance industry.
 There has been focused on investments linked insurance products
supported with protection products to maintain leadership in product
innovation.
 Multidistribution channels direct sales force, alternate channels and
group offering convenient channels of purchased to customers.
36

37.  Web enable IT systems for superior customer services.
 First to have issued policies over the internet.
 Corporate governance and a high degree of transparency in all
business practices and procedures.
 First to have on operational business continuity plan.
 Strong fundamentals based on the Adyta birla group’s local insight
and sunlight financial global expertise.
37

38. Vision
To create long term value along with market leadership
Mission
To help people mitigate risk of life, accident, health and money at all
stages and under all circumstances.
Enhance the financial features of our customers, including enterprises.
Values
 Integrity
 Commitment
 Passion
 Seamlessness
 Speed
With privatization of the insurance sector, the customers bargaining looking has
increased .It is a buyers market with new insurance companies looking forward to gain the
market share. All through the growth rate of the economy has been quite impressive in the
last decade, the insurance market is linked to witness a sea change in the marketing mix
i.e. product , price ,place (distribution channels ) and promotions the customers driven and
innovations in product , pricing distributions channels and communication on mechanism.
The IRDA, with its development and regulator, guides, is likely to promote competition,
38

39. fairness and reliability against excessive, inadequate or unfair discriminate rates. The
companies want to offer value added survive to customer and competitive pricing for
pricing.
In its first year of privatization, the insurance sector witnessed number of private players
questing up to top the potential of this lucrative market.The majority of insurance
companies today are under tariff that means Insurance companies cannot price the product
suite the customer or the customer group. The way to survey the customer is to segment
the market on offer the correct the product at the correct price to that market segment. This
can only take place in a tariff less market.There is a huge untapped potential India which
needs to be targeted. The distribution channel is a means to reach the masses in urban,
semi urban and rural areas with a wide range of products being available for different
segments in the market; it becomes important to promote them through the right channel.
Insurance companies can target the existing a well is new customers to offer them different
products. Distribution channels also offer cross –selling opportunities.
Insurance is a hedge against the occurrence of unforeseen circumstances insurance
products .Therefore help individuals in not only mitigating risk but also helps in providing
in a financial burdens suffered. While the aim of investment is to increase the return on
funds deployed, the objective of insurance products is totally different to mitigate the risk
of accident life, injuries, loss etc
39

40. DATA ANALYSIS
1. Which plan did you option for?
Saving plan 25
Retirement plan 33
Child plan 24
Group plan 18
INTERPRETATION: The above table shows what plan was option that are saving plan
30%,Retirement plan 15%,child plan 40% and group plan 15%.
40

41. Graph 1: for Which plan did you option for?
The diagram showing which plan your
option
25
33
24
18
0
5
10
15
20
25
30
35
Saving
plan
Retirment
plan
Child plan Group
plan
Series1
41

42. 2. Did you purchase?
INTERPRETATION:
The above table shows that what type of plan your purchase BSLI 50% and private
insurance plan 50%
BSLI plans 50
Private insurance plans 50
42

43. Graph 2: Did you purchase?
purchase any plans
50
50
100
1
2
3
4
43

44. 3. Your current saving plans is opt?
SLI 45
TATA AIG 20
ICICI 25
Bajaj Allianz 10
INTERPRETATION: The above table shows that what you saving plan option BSLI
45%,TATA AIG 20%,ICICI 25%, BAJAJ ALLINZ 10%.
44

45. Graph 3: Your current saving plans is opt?
45
20 25
10
0
20
40
60
bsli icici
Current saving plans
Series1
Series2
45

46. 4. How many saving plans have you purchased?
1 15
2 30
3 25
4 17
More than 13
INTERPRETATION: The above table shows that how many plans your purchase
1.15%, 2.30%, 3.25%,4.17% and more than 13%
46

47. Graph 4: How many saving plans have you purchased?
1 2 3 4 More
then
S1
15
30
25
17
13
0
5
10
15
20
25
30
how many savings plans
Series1
47

48. 5. Awareness’ about saving plan was for this source?
Friends 27
Relatives 13
Adviser 60
INTERPRETATION: The above table shows that are how you aware of plans
Friends 27%, Relatives 13%, and Advisers are 60%
48

49. .
Graph 5: Awareness’ about saving plan was for this source?
The diagram showing awarness
27%
13%
60%
Friends
Relatives
Advisers
49

50. 6. Through which media you become aware of saving plans?
Newspaper 42
Outdoor hoarding 16
Television 24
Transport vehicle 18
INTERPRETATION: The above table shows that which media to aware of plans
Outdoor hoarding 16%, News paper 42%, Television 24%, Transport vehicle 18%
50

51. Graph 6 : Through which media you become aware of saving plans?
The diagram showing which type of
media
0
5
10
15
20
25
30
35
40
45
News
paper
Outdoor
hording
Telivision Transport
vehicle
Series1
51

52. 7. Through whom did you purchase the plan?
Advisors 46
Banks 16
Unit managers 23
Others 15
INTERPRETATION: The above table shows that through whom did the purchase
plan Advisors 46% Banks 16%, Unit managers 23% and others are 15%
52

53. Graph 7: Through whom did you purchase the plan?
46
16
23
15
0
10
20
30
40
50
Advisers
agents
Unit
managers
The diagram showing through
purchase the plan
Series1
53

54. 8. Reasons behind opting for the saving plans?
Risk coverage 26
Attractive return on investment 28
Tax benefits 39
Good riders
7
INTERPRETATION: The above table shows that what are the reason of purchase of
plan Risk coverage 26%, Attractive return on investment 28%, Tax benefits 39% and
Good riders 7%
54

55. Graph 8.: Reasons behind opting for the saving plans?
26
28
39
7
0
5
10
15
20
25
30
35
40
Risk
coverge
Tax benfits
The diagram showing opening for the
saving plans
Series1
55

56. 9. Rank the following companies?
BSLI 32
TATA AIG 12
BAJAJ ALLIANZ 22
HDFC 13
AVIVA 21
INTERPRETATION: The above table shows that what are the rank of companies BSLI
32%, TATA AIG 12%, BAJAJ ALLINZ 22%, HDFC 13%, AVIVA 21%.
56

57. Graph 9: Rank the following companies?
32
12
22
13
21
0
5
10
15
20
25
30
35
BSLI BAJAJ
ALLINZ
AVIVA
tHE DIAGRAM SHOWING RANK THE
FOLLWING COMPANY
Series1
57

58. 10.. Are you satisfied with the plan purchased?
Highly satisfied 26
Moderately satisfied 28
Dissatisfied 16
Moderately dissatisfied 30
INTERPRETATION: The above table shows that satisfied of the customer Highly
satisfied 26%, Moderately satisfied 28% , Dissatisfied 16% Moderately satisfied 30%
58

59. Graph 10: Are you satisfied with the plan purchased?
26
28
16
30
0
5
10
15
20
25
30
Higly
satisfied
Dissatisfied
The diagram showing are you satisfied
the plans purchased
Series1
59

60. 11. Did you ever face a problem after purchase?
Yes 64
No 36
INTERPRETATION: The above table shows that after purchase your facing problem
Yes 64 %, and No 36%.
60

61. Graph 11: . Did you ever face a problem after purchase?
Thediagram showing faced the
problem
64%
36%
Yes
No
61

62. 12. Time taken to solve the problem by the company?
With in a day 26
With in a week 32
With in a half month 30
With in a month 12
INTERPRETATION: The above table shows that how many days to solve your problem
by company With in a day 26%, With in a week 32%, With in a week 32%, With in a half
month 30%, With in a month 12%.
62

63. Graph 12 : Time taken to solve the problem by the company?
26
32 30
12
0
5
10
15
20
25
30
35
With in
a day
With in
a week
With in
a half
month
With in
a month
The diagram showing solve the
problem by company
Series1
63

64. 13. According to you saving plan are BSLI are?
Effective 68
Non effective 32
INTERPRETATION: The above shows that according to you saving plan of BSLI
Effective 68%, Non effective 32%.
64

65. Graph 13: According to you saving plan are BSLI are?
The diagram showing according to
saving plans of bsli
68%
32%
Effective
Non effective
65

66. 14. Would you recommend the companies saving plans to any one?
Yes 70
No 30
INTERPRETATION: The above table shows that would you like to recommend to
any one Yes 70%, NO 30%.
66

67. Graph 14: Would you recommend the companies saving plans to any
one?
The diagram showing recommend the
company
70%
30%
Yes
No
67

68. 15. Which option is taken by you in saving plans of BSLI?
Life time 28
Premier life 22
Secure plus 15
Invest child cash 15
Others 20
INTERPRETATION: The above table shows that customer option taking saving
plan in BSLI, 28% people of opting for life time , 22% people are choosing premier life,
15% people are option for secure plus, 15% people are ready to investing child cash, 20%
people ar4e interest in other
68

69. Graph 15: Which option is taken by you in saving plans of BSLI?
69

70. FINDINGS
 The investment in the units are subject to market and other risks and there can be
no. occurrence that the objective of any of the plans will be achieved.
 All benefits payable under the policy are subject to tax laws and other financial
enactments, as they exist from time to time.
 The entry age for most of there saving plans is 0-60 years and maturity age for the
saving plan is mostly 75 years.
 The major competitor for BSLI (Birla Sun Life Insurance) this is major judged on
security aspect.
 5. Majority of the customers have opted for saving plan and LIC being a major
choice.
70

71. SUGGESTIONS
 BSLI should make the plan process more qukely as most of the costumer’s feel it
as a lengthy process.
 It would be better if compact as a 24 hour call center or customer service center for
more effectiveness.
 It would be better if the company options to go for regular advertising for
promotion activities.
 As for now, BSLI carried out only two distribution channels, tide up agency’s and
bank assurance, it would be better if they how more then.
 BSLI as not at used the media it would be better if they adopt such media.
 BSLI as sponsored a very few events till date. it is advice to sponsor more for more
business.
CONCLUSION
The present study focuses on the Savings Plans, their awareness levels about Birla sun life
insurance savings plans, how customers perceive these savings plan. The awarness levels
of the customers are good and the company should take initiatives to further increase the
awareness thereby increasing the purchase. The customers are very much satisfied by the
savings plan of Birla Sun Life Insurance and the company should try to maintain the
satisfaction levels.
71

72. BIBLOGRAPHY
Books:
• Marketing Management by Philip Kotler
• Principals of Marketing by Stanton & Gary Armstrong
• Consumer Behavior, Concepts and applications by Louden & Bitta
Websites
 www.bsli.com
 www.insurance.com
 www.google.com
 www.irda.com
72

73. QUESTIONNAIRE:
1. Which plan did you option for?
a. saving plan b. retirement plan c. child plan d. group plan
2. Did you purchase?
a. BSLI plans b. pvt insurance plans
3. Your current saving plan is of?
a.BSLI b.TATA AIG c.ICICI d.Bajaj Allianz
4. How many saving plans have you purchased?
a.1 b.2 c.3 d.4 e. more than
5. Awareness about saving plan was for this source?
a. Friends b. Relatives c .Colleges d Advisers
6. Through which media you become aware of saving plans?
a. news paper & magazine b. out door hoarding c. television exhibition
d. Transport vehicle.
7. From whom did you purchase the plans?
a.advisers &agents b.bank c.unit managers’ d.others
8. Reasons behind opting for the saving plans?
a. risk coverage b.attractive return on investment c.tax benefits
d.good riders.
73

74. 74

75. 9. Rank the following companies?
a.BSLI b.TATA AIG c.Bajaj Allianz d.HDFC e.Aviva
10. Are you satisfied with the plan purchased?
a. highly satisfied b.moderatly satisfied c.dissatisfied
d. .moderately dissatisfied e.neither satisfied nor dissatisfied
11. Did you ever face a. problem after purchase?
a. yes b.no
12.Time taken to solve the problem by the company?
a. with in a day b.with in a weak c. with in half month
d. with in a month
13. According to you, saving plans of BSLI are?
a. effective b.non effective
14. Would you recommend the companies savings plans to any one?
a. yes b. no
15Time taken to solve the problem by the company?
a. with in a day b.with in a weak c. with in half month d. with in a month
75