1.

INTRODUCTION TO THE STUDY

This study is aimed at studying the impact of advertising and its various strategies in the
insurance industry. This study also focuses on the role of insurance in general and the role of Birla
Sun life Insurance as a governing body for the insurance sector. The study also involves the
overview of various players in the market for this specific sector. Indian insurance is a flourishing
industry, with several national and international players competing and growing at rapid rates.
Thanks to reforms and the easing of policy regulations, so is the increasing role of advertising
which effects the consumers choice.

The study being descriptive and explanatory in nature, findings have been made through
theoretical analysis in order to get an insight into the cause and effect relationship of advertising
and consumers perception relating to insurance products which ultimately effects the insurance
industry on a whole. Indian economy is developing and having huge middle class societal status
and salaried persons. Their money value for current needs and future desires here the pendulum
moves to another side which generate the reasons behind holding a policy. Here the attempt has
been made in this research paper to study the buying behavior of consumers towards life insurance
services.

India is a country where the average selling of life insurance policies is still lower than
many western and Asian countries, with the second largest population in world the Indian
insurance market is looking very prospective to many multinational and Indian insurance
companies for expanding their business and market share. Before the opening of Indian market for
Multinational Insurance Companies, Life Insurance Corporation (LIC) was the only company
which dealt in Life Insurance and after opening of this sector to other private companies, all the
world leaders of life insurance have started their operation in India. With their world market
experience and network, these companies have offered many good schemes to lure all type of
Indian consumers but unfortunately failed to get the major share of market. Still the LIC is the
biggest player in the life insurance market with approx. 65% market share. But why Indian
consumers do not trust on many companies and why the major population of India do not have any
life insurance policy or what are the factors plays major role in buying behavior of consumers
towards life insurance policies.
Research Topic:

Effect of Advertising on Insurance Sector and changing in the Perception of consumers

after Advertising:

Research Objective:

1. To know the awareness of Insurance policies and Insurance Companies.

2. To Understand the Consumer Buyer Behavior for Insurance Policies.
3. To understand the impact on the sell and market growth for Insurance Sector with and
without Advertising.

Introduction:

Advertising denotes a specific attempt to popularize a specific product or service at a

certain cost. It is a method of publicity. It always intentional openly sponsored by the sponsor and
involves certain cost and hence is paid for. It is a common form of non- personal communication
about an organization and or its products idea service etc. that is transmitted to a target audience
through a mass medium. Advertisements are sometimes spoken of as the nervous system of the
business world. As our nervous system is constructed to give us all the possible sensations from
objects, so the advertisement which is comparable to the nervous system must awaken in the reader
as many different kinds of images as the object itself can excite. Advertising effectiveness means
different things to the groups responsible for its different effects. Effective advertising must
achieve all four goals, delivering messages to the right audience, thereby creating sales at a profit.

Indian insurance companies offer a comprehensive range of insurance plans, a range that
is growing as the economy matures and the wealth of the middle classes increases. Indians are
becoming more familiar with the different insurance product, all because of the increasing
involvement of advertising which is being used by different insurance players to influence the
consumers and make them more aware about the latest developments and the benefits of insurance.
Literature Review:

The insurance industry thrives on financial marketing organizations selling/marketing

products to agencies...and agencies selling/marketing products to agents, who in turn sell to these
products to consumers.

Broad advertising is typically done at the consumer level. However, at the end of the day insurance
companies must attract agents to sell the products. Matin Khan-Consumer Behaviour and
Advertising Management, 2006. The author deals with the consumer behavior as far as the
advertising is concerned. The book deals with the usual aspects of consumer behavior like culture,
social class, lifestyle and psychographic segmentation etc. The author also discusses outlet
selection, consumerism, customer delight, e-consumer behavior and changing consumer behavior
in the Indian Context.

Further value addition has been done by discussing ethical and social issues in advertising,
management of an advertising. Agency and role of advertising in national development with the
help of various Indian examples and case studies. Flemming Hansen, Sverre Riis Christensen
Emotions, Advertising and Consumer Choice. Emotions, Advertising and Consumer Choice
focuses on recent neurological or psychological insights originating from brain scanning or
neurological experiments on basic emotional processes in the brain and their role in controlling
human behavior. These insights are translated by the authors to cover the behavior of ordinary
individuals in every-day life. The book looks at these developments in the light of traditional
cognitive theories of consumer choice and it discusses the implications for advertising and other
communication testing. The book offers a first-time thorough review of contemporary thinking in
the field of consumer behavior and an exhaustive amount of empirical evidence to support the
authors' notion of an emerging paradigm of emotionally-based consumer choice where mental
brand equity becomes a central phenomenon.

India is one of the emerging markets that pose a unique set of challenges to marketers. The
importance of the context and the usefulness of concepts in the Indian context is the core
proposition. The diversity of a mix of factors such as cultural aspects, lifestyles, demographics and
unbranded offerings make consumer behaviour a fascinating study.
 Michael L. Smith (1982) said that a typical life insurance contract provides a package of
options or rights to the policy owner that is not precisely duplicated by any other combination of
commonly available contracts. Viewed from this perspective, life insurance enjoys a unique
position in the field of investments and should be judged in this light. The paper shows that an
options viewpoint provides a more complete explanation of policy owner behavior towards life
insurance than the conventional savings-and-protection view.

Michael L. Walden (1985) told that the option's package view of the whole life insurance
policy suggests that a whole life policy is a package of options, each of which has value and is
expected to influence the price of the policy. This viewpoint implies the general hypothesis that
price differences between whole life policies can be explained by differences in policy contract
provisions and differences in selected company characteristics. The option's package theory was
empirically investigated using regression analysis on data from a sample of policies marketed in
North Carolina. The results suggest support for the options package theory.

Kirchler and Angela-Christian Hubert (1999) found that the present study aims at
describing spouses relative dominance in decisions concerning different forms of investment. As
determinants of spouses dominance, partnership characteristics, such as partnership role attitudes,
marital satisfaction and individual expertise in relation to different investments, were considered.
A questionnaire on spouses dominance in making decisions on various investments, on the
characteristics of particular investments and on partnership characteristics was completed by 142
Austrian couples. Basically, wives appeared to adapt to the dominance exerted by their husbands
in savings and investment decisions. Wives dominance was highest in egalitarian partnerships,
where autonomic and wife-dominated decisions were reported more frequently than in traditional
partnerships. Additionally, spouses relative expertise in relation to the investments in question
showed strong effects on dominance distribution: Spouses with higher expertise than their partners
exerted more dominance in decision-making processes.

Amy Wong, (2004) empirically examined the role of emotional satisfaction in service
encounters. Specifically, this study seeks to: investigate the relationship between emotional
satisfaction and key concepts, such as service quality, customer loyalty, and relationship quality,
and clarify the role of emotional satisfaction in predicting customer loyalty and relationship
quality. In doing so, this study used the relationship between emotional satisfaction, service
quality, customer loyalty, and relationship quality as a context, as well as data from a sample
survey of 1,261 Australian retail customers concerning their evaluation of their shopping
experiences to address this issue. The results show that service quality is positively associated with
emotional satisfaction, which is positively associated with both customer loyalty and relationship
quality. Further investigations showed that customers' feelings of enjoyment serve as the best
predictor of customer loyalty, while feelings of happiness serve as the best predictor of relationship
quality. The findings imply the need for a service firm to strategically leverage on the key
antecedents of customer loyalty and relationship quality in its pursuit of customer retention and
long-term profitability.

Helmut Grndl, Thomas Post, Roman Schulze, (2005) found that demographic risk, i.e.,
the risk that life tables change in a nondeterministic way, is a serious threat to the financial stability
of an insurance company having underwritten life insurance and annuity business. The inverse
influence of changes in mortality laws on the market value of life insurance and annuity liabilities
creates natural hedging opportunities.

Evan Mills, Ph.D.(1999) Studied the insurance industry is rarely thought of as having much
concern about energy issues. However, the historical involvement by insurers and allied industries
in the development and deployment of familiar technologies such as automobile air bags, fire
prevention/suppression systems, and anti-theft devices, shows that this industry has a long history
of utilizing technology to improve safety and otherwise reduce the likelihood of losses for which
they would otherwise have to pay. We have identified nearly 80 examples of energy-efficient and
renewable energy technologies that offer loss-prevention benefits, and have mapped these
opportunities onto the appropriate segments of the very diverse insurance sector (life, health,
property, liability, business interruption, etc.).

Some insurers and risk managers are beginning to recognize these previously "hidden" benefits.

Roger. A. Formisano (1981) examined, via consumer interviews, the impact of the National
Association of Insurance Commissioner's Model Life Insurance Solicitation Regulation as
implemented in New Jersey. A substantial portion of the insurance buyers sampled did not become
aware of the provisions of the regulation aimed to improve their buying ability. Further, many life
insurance buyers were not well informed concerning the nature and operation of life insurance
contracts, and in particular, the life insurance policies that they had purchased.
Research Methodology:

Research methodology is a strategy that guides a research in providing answers to research

questions and for this, research survey is being done. Accuracy of the study depends on the
systematic application of the method. The researcher has to decide the method to be used that
helps him to get a desired direction in a systematic way. This studying the following manner.

Research Design:

A research design is a framework or blueprint for conducting the marketing research

project. It specifies the details of the procedures necessary for obtaining the information needed to
structure and/or solve marketing research problem. Conclusive research is designed to assist the
decision maker in determining evaluating and selecting the best course of action to take in a given
situation being the study descriptive in nature, it will go through theoretical data collection, and its
analysis of a survey questionnaire.

Source of Data:

This study is mainly based on primary data which has also been gathered from different
persons in the age group 0f 25-40 and required secondary data is collected from various
newspapers, journals, magazines and websites for the purpose of getting insights into the insurance
industry.

RESEARCH METHOD:

Quantitative Research:

Quantitative research is a study involving the use and analyses of numerical data using
statistical techniques. They pose questions of who, what, when, where, how much, how many, and
how. Quantitative research methods are designed to produce statistically reliable data that tells us
how many people do or think something. Quantitative data typically is in numerical form such as
averages, ratios or ranges.
What can we use it for?

Quantitative research is especially useful when carrying out a large scale needs assessment
or baseline survey. It is independent of the researcher and one should get similar results no matter
who carries out the research. It can also be used to measure trends. For example, the Talking Drum
Studio Evaluation conducted in 1999 discovered that a larger percentage of the uneducated or less
educated Liberian population listened to the TDS than the educated elite. Approximately 82.5 %
of people with no or low levels of education and 89.4% with some education listened to TDS
compared to 76.8% of the people with high levels of education.

Advantages & Disadvantages:

Advantages:

Can be used when large quantities of data need to be collected.

The result is usually numerical (quantifiable) and hence considered more objective.
The data is considered quantifiable and usually generalizable to a larger population.
It can allow SFCG to see changes overtime and help develop quantitative indicators.
It can provide a clear, quantitative measure to be used for grants and proposals.

Disadvantages:

Results need to be calculated using Excel, Access, or data analysis software (such as SPSS),
which may not always be accessible to a country program.
Time consuming, as the researcher or SFCG team member needs to enter, clean and then
analyse the data.
The larger the sample, the more time it takes to analyse the data and analyse results.
The larger the sample the more time it takes to collect data.
The quantitative data ignores a very important human element.

When should it be used?

Quantitative research should be used under the following circumstances:

When trying to measure a trend such as do youth talk to their parents about issues
important to them?
 When data can be obtained in numerical forms such as number of children under 15 who
participate in peacebuilding activities.
When simple objective responses can be received such as yes and no questions.
There is no uncertainty about the concepts being measured, and there is only one way to
measure each concept.
You are trying to collect data in ratios, percentages and averages.

How do we use it?

Quantitative research can be conducted by using a variety of methods of numerical data collection.

Surveys are a quantitative method involving the use of questionnaires and aim to
generalize from a representative sample population to a larger population of interest. (Refer to
module on Surveys for more information and relevant tools)

Mini surveys or informal surveys are a quantitative method for collecting program
information quickly. They involve relatively small population samples using brief questionnaires
that focus on a limited numbers of variables. Mini-surveys are very useful for organizations that
have projects of relatively short duration and are carrying out interventions with well-defined
expectations.

Study is based on sampling not the census method which limits its universality.

METHODOLOGY ADOPTED:

Sample Techniques

The sampling techniques used in this project are probability sampling techniques and the
methods used in cluster sampling. Random Sampling is used as a part of the survey to make it
easier. Questionnaires were used to conduct the survey. Various Pie Charts were used to depict the
analysis.

Sampling Unit

The respondents who were asked to fill out questionnaires are the sampling units. These
comprise of employees of MNCs, Govt. Employees, and Self Employed, housewives, students etc.
Sample size

The sample size was restricted to only 50 between age group of 25-40, which comprised
of mainly peoples from different regions of the city.

Sampling Area

The area of the research is Urban (Bangalore) and Rural India.

DATA COLLECTION

Structured Questionnaire

In this collection data, structured questionnaire is used as a tool by asking a set of

standardized questions to know the effect of Insurance Advertisement and behavior of the people
for their response.

1. Name :
2. Age :
3. Sex :
4. Email Id :
5. Phone No :
6. Income :
a) 200000-400000 []
b) 400000-600000 []
c) 600000 and Above []
7. Occupation :
a) Govt. Employee []
b) Private Employee []
c) Business Man []
d) Others []
8. Which media mostly you used to get the information about the Insurance?
a) TV []
b) Newspaper []
c) Social Media (Internet) []
 d) Radio []
e) Others []
9. Have you seen any insurance Advertisement?
a) Yes []
b) No []
10. At which channel you saw Insurance Advertisement?
a) News []
b) Music []
c) Movie []
d) Sports []
e) News Paper & Magazine []
f) Agent []
g) Others []
11. Can you recall the context of Advertisement of Insurance Company?
a) Yes []
b) No []
12. Does the Advertisement of any product of any Insurance company leaves a lasting on
your mind regarding the brand?
a) Yes []
b) No []
13. Have you ever heard about the company Birla Sun life insurance in the insurance sector?
a) Yes []
b) No []
14. If yes, then mention the source from where you have heard?
a) TV Ad []
b) Newspaper/Magazine []
c) Internet/ Social Media []
d) Personal E-mail/ SMS []
e) Word of mouth []
f) From Birla Sun life salesperson []
g) Others []
15. Do you plan to invest in any insurance policy in the near future?
a) Yes []
b) No []
16. If yes what options do you have in your mind?
a) Birla Sun Life Insurance []
b) LIC []
c) SBI LIFE INSURANCE []
d) HDFC Life INSURANCE []
e) ICICI PRUDENTIAL []
f) Others []
17. Reasons behind taking an insurance policy?
a) Safety and Security []
b) Mode of Investment []
c) Tax Planning []
d) ROI & Additional Benefits on purchase of Insurance []
e) Others (Please Specify) []
18. Purchase of policy Driven by:
a) Self-Driven/ Safety Purpose []
b) Family and friends []
c) Expert Opinion []
d) Users Review by Advertising Media []
19. Which of the following Birla Sun life Insurance product have you heard of?
a) Income insurance []
b) Money Back []
c) Term Insurance []
d) Life Insurance []
e) Wealth insurance []
f) Child Insurance []
g) No response []
20. Do you know any of the following unique features and benefit of Birla Sun life
insurance?
 a) Tax reduction []
b) Guaranteed annual payout []
c) Endowment or money back []
d) Flexible payout option []
e) Premium payment option []
f) Money Back option []
21. If you are not interested to buy Birla Sun life insurance policy, can you please write the
reason?

22. Does your company provide you with insurance?

a) Yes []
b) No []
23. Which mode of advertisement attracts you most?
a) Newspaper []
b) Television []
c) Magazine []
d) Online Advertisements []
e) Hoardings/posters []
f) Others []
24. What type of magazine do you read often? (Please tick one or more)
a) Sports []
b) Business []
c) Fashion []
d) Education []
e) Entertainment and Film []
f) Comics []
 g) Automobiles []
h) Others []
25. Which newspaper do you read often? (Please tick one or more)
a) The Hindu []
b) The Times of India []
c) The Business Standards []
d) The Economic Times []
e) The Telegraph []
f) Deccan Herald []
g) Others []
26. You spend maximum time on which channel while watching television?
a) News Channels []
b) Sports Channels []
c) Music Channels []
d) Movie Channels []
e) Cartoon Channels []
f) Entertainment & lifestyle Channels []
g) Science & discovery related Channels []
h) Other Channels []
27. Which type of advertisement attracts you most?
a) Animation []
b) Originality []
c) Humor []
d) Music []
e) Storyline / concept []
f) Celebrity endorsement []
28. In which way do you want to receive information related to Insurance?
a) Print Ad []
b) Magazine Ad []
c) Hoardings []
d) TV Ad []
 e) Web Ad []
f) Agents []
29. How often did you see Birla Sun life Insurance advertisement in Television in last week?
a) 0 []
b) 1-3 []
c) 4-7 []
d) More than 7
30. Timing slots for Advertising of a TVC?
a) 8:00 PM to 9:30 PM TV Channels (Serials) []
b) 9:00 PM to 10:00 PM TV Channels (News) []
c) 7:30 AM to 9:00 AM TV Channels (Business News)[]
d) 10:00 AM to 12:00 PM TV Channels (Serials) []
e) According to the Match Timings (Sports) []
31. How did you describe the advertisement? (If you have seen any advertisement of Birla
Sun Life insurance, then only answer this question)
a) Convincing []
b) Just for the purpose of sale []
c) Building relationship between company & consumer[]
d) Satisfying your needs []
32. Do you feel you need to see more advertisements to know about the products of Birla Sun
life Insurance?
a) Yes []
b) No []
33. Does Advertising makes any difference on buying behavior for any type of Insurance
Product?
a) Yes Please (Specify) []
b) No []
34. Your valuable feedback:

Till now Research has not been completed and waiting for the responses from the consumers are
in progress. There for there is no data analyzation part for this section of document.
 2. INDUSTRY AND COMPANY PROFILE
Insurance occupies an important place in the complex modern world since risk, which can
be insured, has increased enormously in every walk of life. This has led to growth in the insurance
business and evolution of various type so insurance covers. The insurance sector acts as a mobiliser
of savings and a financial intermediary and is also a promoter of investment activities. It can play
a significant role in the economic development of a country, while economic development itself
can facilitate the growth of the insurance sector.

Insurance can be classified broadly into :( a) life insurance, and (b) general or non-life
insurance. (a)Life insurance or life assurance is a contract between the policy owner and the
insurer, where the insurer agrees to pay the designated beneficiary a sum of money upon the
occurrence of the insured individuals death or other event, such as terminal or critical illness. In
return, the policy owner agrees to pay a stipulated amount at regular intervals or in lump sums.
Life-based contracts tend to fall into two major categories:

Protection policies: designed to provide a benefit in case of a specified event, typically against
lump sum payment. A common form of this policy is term insurance.

Investment policies: the main objective is to facilitate the growth of capital by single or regular
premiums. The common forms in this category include whole life, universal life and variable life
policies.

General insurance or non-life insurance policies, including automobile and homeowners

policies, provide payments depending on the loss from a particular financial event. General
insurance typically comprises any insurance cover that is not deemed to be life insurance. Some
categories of general insurance policies are: vehicle, home, health, property, accident, sickness and
unemployment, casualty, and credit. The terms of insurance generally depend on the company
providing the cover.

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.
INDUSTRY PROFILE
The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again. Tracing the developments in the Indian
insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.
A BRIEF HISTORY OF THE INSURANCE SECTOR
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 businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.
Boasting of the largest number of operational life insurance policies in the world, the Indian
insurance industry has emerged as a serious destination in the global insurance market. Until 1999,
the business of insurance in India was the exclusive privilege of two state-owned corporations
the Life Insurance Corporation of India (LIC) and the General Insurance Company of India (GIC).
The Government of India took a major step towards liberalization of this industry in March 2000
and brought into effect the Insurance Regulatory Development Authority Act (IRDA Act). The
IRDA Act opened the market by doing away with all entry-level restrictions on private insurers.
Thereafter, it has been four years of consistent growth. With the current potential premium income
of the country estimated India is seen as the sixth largest market in the world.
While 80% of its population remains without life insurance and some of the world's lowest health
and non-life insurance cover levels, the potential of the world's seventh largest and second most
populous country cannot be overlooked. Prospective insurers have a lot to gain from the 312
million middle-class consumers in India, who 10 have the financial ability to purchase insurance.
With only 2.5% of the country's insurable population currently insured, the market still needs to
be tapped effectively.
THE INDIAN INSURANCE MARKET
From the Indian Life Insurance Company Act in 1912 to the 1RDA Act; in 1999, regulation of
insurance business in the country has come a long way. Insurance is a subject of federal law and
all insurance business in India has been nationalized. The two major legislations dealing with
insurance are the Insurance Act, 1938 and the IRDA Act, 1999. Marine insurance in the country
is governed by the Indian Marine Insurance Act, 1963. Similarly, fire and marine insurance are
dealt with under the Insurance Act, 1972 and the: General insurance Business (Nationalization)
Act, 1972. These enactments contain provisions relating to the constitution, management and
winding up of insurance companies and the conduct of those types of insurances.

A Tariff Advisory Committee (TAG) is established under the Insurance Act to regulate rates,
terms, conditions and advantages that maybe offered by insurers for General Insurance Business
relating to Fire, Marine (Hull), Motor, Engineering and Workmen's Compensation in India.
In 1999, the IRDA was set up under the IRDA Act. Companies, aspiring to carry on insurance and
reinsurance business in India, are required to register with IRDA, which is the sole authority for
granting licenses to agents. There is neither a restriction on the license numbers that may be granted
nor a system of composite licenses for life and non-life insurance companies in India. Insurance
companies are strictly forbidden from dealing with products beyond their scope of license. This
implies that, a life insurance company cannot sell non-life insurance and vice versa. Insurance
agents are, however, allowed to sell both life and non-life products (composite insurance).

In tune with the Indian government's system of checks and balances imposed through sector
specific Foreign Direct Investment (FDI) limits, IRDA prohibits 100% foreign ownership of an
Indian insurance company. An Indian promoter is required to invest either wholly or team up with
a foreign insurer, which can own no more than 26% of the shares in any new venture. The Indian
promoter must then sell the majority of his shares to the Indian public through a public offering
after 10 years and retain only up to 26% of the shares that is, the same percentage as that of the
foreign investor.

IRDA is careful in granting licenses and has set up strict standards for all aspects of insurance in
India. With the limit on FDI in the sector, the government ensures that state-run agencies such as
the LIC and GIG can maintain their prominence.
In June 2003, the Law Commission prepared a paper identifying 13 potential grounds of revision to the
Insurance Act and the IRDA Act, including merger of relevant provisions of the two acts, as well as
harmonization of the Insurance Act with other rules and regulations in the sector. The finance ministry is
already working towards comprehensive amendments to the Insurance Act and the IRDA Act, which will
further simplify procedural issues. A major indication of the government's efforts to invite Private Indian
and foreign insurers to invest in the liberalized market is the FDI cap hike announced by the finance ministry
in 2004. These changes, however, require formal amendments to the IRDA Act, which are still to be
adopted.
Major Players in the Market
The Indian insurance sector till recently comprised of only two state insurersthe LIC, for life
insurance, and the GIG, for general insurance. In December 2000, GIG subsidiaries (Oriental
Insurance Co. Ltd., New India Assurance Co. Ltd., National Insurance Co. Ltd. and United India
Insurance Co. Ltd.) were restructured as independent insurance companies. At the same time,
GIG itself was converted into a national reinsurer. In July 2002, Parliament passed a bill, which
cut the formal relationship between the four subsidiaries and GIG.

In December 2000, GIG subsidiaries (Oriental Insurance Co. Ltd., New India Assurance Co. Ltd.,
National Insurance Co. Ltd. and United India Insurance Co. Ltd.) were restructured as independent
insurance companies. At the same time, GIG itself was converted into a national reinsurer. In July
2002, Parliament passed a bill, which cut the formal relationship between the four subsidiaries
and GIG.
Private Players- Life and Non-Life Insurance
Begun in 1818, with the establishment of the Oriental Life Insurance Company in Calcutta, the
business of life insurance in India has come a long way. The most popular products in this sector
are 'Endowment' and 'Money Back' policies. More than 80% of the Indian life insurance business
comes from these two products.
The major players in this field include:
Birla Sun Life Insurance Co. Ltd.
Dabur CGU Life Insurance Company Pvt. Ltd.
Bajaj Allianz Life Insurance Co. Ltd.
ICICI Prudential Life Insurance Co. Ltd.
Aviva Life Insurance Co. Ltd.
Metlife India Insurance Co. Pvt. Ltd.
ING Vysya Life Insurance Co. Pvt. Ltd.
Life Insurance Corporation of India
Max New York Life Insurance Co. Ltd.
Om Kotak Mahindra Life Insurance Co. Ltd.
SBI Life Insurance Co. Ltd.
HDFC Standard Life Insurance Co. Ltd.
Tata AIG Life Insurance Co. Ltd.
Reliance Life Insurance Co. Ltd

Consistent growth has been observed in the private insurance markets. Though LIC has been in
the country for a long time, it didn't tap much of the rural market. It only concentrated on the
endowment and money back policies. Private insurers had taken an advantage of this and had come
out with innovative products like Unit-Linked Insurance Products (ULIPs). As a competition now,
LIC had also started coming out with ULIPs.

The private insurance market has grown despite the continued existence of the public sector
providers. LIC has concentrated on retaining its market in traditional products like endowment
and money back policies, and has not slackened its hold in the rural areas. This has prompted
many of the private companies to market new and innovative products as a means of competition.
LIC in turn is now moving towards new products like unit linked life products which to date have
mainly been sold by the private sector.

The non-life sector primarily consists of fire and miscellaneous risk insurance policies. Also,
since motor vehicle cover is compulsory in India, it acts as another chief source of business in the
non-life sector.
Major players in the non-life sector in India include:

Allianz Bajaj General Insurance Co. Ltd.

ICIC1 Lombard General Insurance
IFFCO Tokyo General Insurance
Reliance General Insurance
Royal Sundaram Alliance Insurance

THE REINSURANCE MARKET

Whilst its (GIC's) four independent subsidiaries now look after general insurance, GIC itself is the
primary reinsurer in the Indian market. All insurance companies in India have to give at least 20%
of their reinsurance business to GIC. GIC reinsures their potential liabilities further with
international companies such as Swiss Re and Munich Re. This ensures that GIC's role, as the
national reinsurer, is maintained despite foreign players in the fast evolving Indian insurance
market.

FOREIGN INFLUX

In the last three years, despite the equity ratio restrictions, foreign companies have collectively
managed to corner a considerable share of the Indian insurance market. Investment generally takes
two forms: Outsourced BPO operations and direct shareholding. A recently published Research
and Markets Report in an American insurance journal emphasized this trend and set out advantages
for the US companies to consider India as an insurance BPO center. Some of the advantages
include: Established destination for outsourcing, low costs, near-shore services, Indian IT
outsourcers extending relationships with insurers, and Indian vendors expanding to establish a
multi-location presence to minimize the risk to their business from foreign competition.
For example LIC, hitherto the virtual monopolist in the country's insurance sector has recently
witnessed a decline in its new premium business. Between April 2004 and February 2005, its share
of first year premium dropped by 9.3%, i.e., to 77.87% from a market share of 87.22% in the
preceding year. But, there is still not too" much cause for concern for Indian insurers; foreign
insurers at present have a share of just 2% in the country's life insurance business and 1% in the
non-life insurance business.

GROWTH

Insurance business in India is growing at the rate of 15-20% annually and IRDA has estimated that
it is currently of the order of Rs. 812.50 cr. When combined with banking services, it adds about
7% of the country's GDR Insurance penetration (i.e., premiums as percentage of GDP) has
increased from 2.32% in 2000 to 2.88% in 2003. Likewise, insurance density (i.e., premium per
capita) has increased from Rs. 435.897 in 2000 to Rs. 722.092 in 2003.

Such changes have caused a climb in the country's ranking from 23rd in the worldin terms of
total premium volumesin 2000, to 19th in 2003. India's share in the world market has increased
from 0.41% to 0.59% during the same period.

There has been an 83% increase in the premium collected in the three years following the passage
of the IRDA Act. As already noted, the total premium collected by the insurers both life and non-
life in the year 2004-05 is estimated to be about Rs. 253.43 bn during the fiscal year 2004-05, (Rs.
66 bn in life and about Rs. 176.1 bn in non-life premiums). By comparison, estimates for the year
2000-01 put the total premiums at about Rs. 440 bn (Rs. 352 bn in life and Rs. 88 bn in non-life
premiums). The average size of life insurance cover before privatization was around Rs. 50,320.
That has since risen to about Rs. 80,500.

The state-owned life insurerLIC, along with 13 private players, mopped up Rs. 65.22 bn in
premium in the first four months of this fiscal by selling about 62 lakh new policies. And 55 lakh
new policies have been sold by LIC alone which helped it to make an 8.74% rise in premium
income at Rs. 49.7 bn during April-July, this fiscal. The traditional life insurance cover, provided
by LIC, has so far been dominated by the savings policies. Term life' policies have accounted for
less than 2% of the insurance premium of LIC. The new life insurance companies are concentrating
on term life policies in the hope that this will be their main stream of business. Private players
have an average policy size of Rs. 1, 15,000. The 13 private players have increased their market
share to 23.81% from 17.28% in 2004. In the forefront is Birla Sun life with a market share of
7.12% making a 49% growth in business at Rs. 4.64 bn. Then comes, Bajaj Allianz, HDFC
Standard, Tata AIG, ICICI Prudential, SBI Life, Max New York and Aviva.

DISTRIBUTION AND INTERMEDIARIES

The industry is looking at new modes of development and distribution such as technology. The IT
expenses of the insurance sector in India, at present, are estimated at Rs. 80-100 cr per annum.
Public sector giant, LIC, has large investments in IT. Among private players, Birla Sun Life is a
major IT investor with Rs. 35 cr spent since inception.

Amidst the steady industry growth is the small, but ever-increasing role of intermediaries. Until
two years ago, distribution of life insurance products was only through pure life insurance agents
who did not sell any other product. Today, there are alternate channels like bancassurance, brokers,
corporate agents and direct marketing through the Internet. ICICI Prudential Life, the second
largest life company in the country, attributes 28% of its business premium in 2003 to alternate
distribution contributions.

THE INACTIVE HEALTH INSURANCE MARKET

The number of medical insurance policies sold in India has increased from 7.53 million in 2001-
02 to 10.28 million in 2003-04. However, the lack of a comprehensive and accurate database has
impeded the growth of the health insurance sector, since this is vital for effective business planning
and risk allocation. The World Health Report 2000 estimated private spending in India to be 87%
of the total health spending. Of this, 84.6% was made from out-of-pocket expenditure." This is
despite IRDA's Rs. 90,000 cr estimation of the market size and 10% annual growth rate.

Health insurance schemes in India, at present, are in the form of indemnity-based products under
which, payment to the health provider is first made by the sick individual and this amount is later
reimbursed (partly or fully) by the insurance company to the insured. A large section of the
population cannot afford such large payments at the time of illness even if these payments are
reimbursed later and, thus tend not to take up this type of insurance. Furthermore, the system
provides for reimbursement only in case of hospitalization, not for outpatient care, or allopathic
treatment or alternative systems of medical care.
Government employees in India, unlike the general public, enjoy the benefit of being covered
under several state provided schemes such as the Employees States Insurance (ESI) and Central
Government Health Schemes (CGHS) For the rest of the population, there is the Mediclaim, which
offers cover for more general medical treatment, and 'Jan Arogya Bima' which covers emergency
medical treatment, only. Post-liberalization, new general insurers have introduced deviants of the
Mediclaim while life insurers have introduced some health riders to their life policies, which have
a negligible effect.

Health insurance in India remains a minor percentage of the public sector non-life insurers'
business portfolios. The situation has not improved even after liberalization and the private
companies have only focused on establishing their business networks by enlarging their life
portfolios. Only 0.2% of India's 1.1 billion people are covered under medical insurance as against
America where 75% of the population has health cover.

With the supply of health services (particularly in-patient facilities) being weak in rural and remote
areas, demand for insurance has naturally been constrained. Health insurance requires a well-
informed, sizeable and relatively prosperous middle -class to grow. This demography now exists
in India, and is showing every sign of getting larger. As a result, both public and private sector
companies now seem to be interested in taking the required steps to create a better base for the
growth of health insurance. As one of the main constraints to popularizing health insurance has
been the inadequacy of data, IRDA has concentrated on identifying the existing obstacles to
database creation and the manner in which they can overcome. The subgroup of the Working
Group on Health Insurance made certain recommendations for a methodology of collecting data
on a uniform basis. IRDA is taking up this issue with industry members, and is pressing for
implementation. Third Party Administrators (TPAs) are being looked at as a major tool for
enhancement.

PESTLE Analysis of Insurance Sector:

POLITICAL FACTORS:

INCREASED SERVICE TAX ON PREMIUM:

The imposition of service tax on the services provided by the insurers has been increased
significantly over past few years by the government.
ENDING OF GOVERNMENT MONOPOLY:

A great revolution in the insurance sector came in the year 1999 when IRDA passed the
bill, lifting all entry restrictions for private players and allowing foreign players to enter the market
with some limits on direct foreign ownership.

INCREASE IN FDI LIMIT:

The hike in the insurance foreign direct investment (FDI) limit to 49 per cent from 26 per
cent has proved to be very beneficial for the insurance industry in India. It has encouraged foreign
investors to invest in Indian insurance industry.

FAVOURABLE REGULATIONS FOR RURAL INSURANCE:

To encourage insurance sector to increase its spread in rural India, government has made
regulations more favorable for rural people by decreasing the amount of premiums, introducing
new group insurance plans and various other special plans for farmers.

ECONOMIC FACTORS:

INCREASE IN GROSS DOMESTIC SAVINGS:

The gross domestic savings of people in India have increased significantly, due to which
they are moving towards new ways of investing money for the future benefits including various
insurance plans. As compared to previous year i.e.2007, the insurance industry thus expected to
grow by about 40% during this fiscal year, i.e.2008.

CONTRIBUTION TO COUNTRYS G.D.P:

According to government sources, the insurance and banking services contribution to the
countrys gross domestic product is 7% out of which the gross premium collection by various
insurance companies forms a significant part.

ROLE IN GOVT. SECURITIES MARKET:

Insurance companies are fest emerging as one of the most prominent players in the govt.
securities market. The share of insurance companies in overall investment in the G-sec market has
more than doubled to 23% during 2007-08 from 9% during the previous fiscal year.
BIGGEST DOMESTIC PLAYER IN EQUITY MARKETS:

According to RBIs annual report for 2007-08, the insurance companies invested Rs. 35880
crore in the G-sec market, which is over 173.06% higher than the Rs.13880 crore they invested in
2006-07. Thus insurers have emerged as the biggest domestic institutional players in the equity
markets.

SOCIAL FACTORS:

LOW INSURANCE COVERAGE:

In India insurance is considered as which is pushed upon the customers to buy. People are
unwilling to buy insurance due to lack of awareness.

INCREASE IN LIFE SPAN AND RISE IN ELDERLY POPULATION:

In India life span has increased over past few years due to which the elderly population in
India is rising day by day. To live a happy and independent life, more no. of educated peoples is
moving towards investing in insurance to ensure a respectful and independent life even in old age.

UNCERTAINITY ABOUT LIFE:

Due to increasing no. of events of terrorist attacks in various parts of the country, people
have started viewing life as more uncertain. It has developed a kind of fear factor in the minds of
people leaving them more worried about their family and kids. Due to this reason they are moving
more and more towards buying insurance policies in order to secure their familys future.

CHANGING INDIAN PERCEPTION:

In India earlier people used to view insurance as a tax saving device or as a method of
investment. But, nowadays a great change in the perception has come. People have started realizing
the importance of getting insured. Now more no. of people is viewing it as a transfer of risk for a
good future.

CHANGE IN FAMILY SYSTEM:

Since past, joint family system was the most prevalent in all the stratus of Indian society.
At that time, in case of a mans death, there were other people in the family to take care of his wife
and kids. But, with the passage of time, a big change in our culture has come. More no. of people
are moving towards nuclear family system. In todays scenario there is no one to help a widow
and her kids because everyone is busy with his/her family. In such a situation more no. of people
are opting for insurance to secure their spouse and childrens future.

INCREASE IN LIFE STYLE DISEASES:

Due to modernization, the life has become very fast. Many changes have taken place in the
life style of people, due to which a large no. of new life style diseases have made their place in our
country. Thus, more no. of people is opting for health insurance etc to lead a better and more
secured life.

TECHNOLOGICAL FACTORS:

AUTOMATION OF PROCESSES:

Nowadays, with advancement in technology the whole process of insurance has become
automated. Earlier it used to take 15days to 45days for the issuance of policy documents. But,
nowadays the whole process gets completed within 5 to 7 days.

INTERNET DRIVEN INFORMATION ERA:

With an increase in internet usage and its increasing spread, it has become easier for people
to get informed about everything at their home only. Now they dont have to waste time in
gathering information before taking any financial step. Every information is now a days is
available on the net.

BUSINESS PROCESS MONITORING:

It has become easier fo0r people to track every event in a business process. It has resulted
in more transparency in every aspect of business processing.

E-BANKING FACILITY:

More no. of people in urban sector are moving towards e-banking and credit card facilities
etc. which has made payment of premium much easier, convenient and hassle free for customer.
Legal Factors:

Despite strong improvement in penetration and density in the last 10 years, India largely remains
an under-penetrated market. The market today is primarily dependent on push, tax incentives and
mandatory buying for sales. There is very little customer pull, which will come from growing
financial awareness and increasing savings and disposable income.In the long run the insurance
industry is still poised for a strong growth as the domestic economy is expected to grow steadily.
This will lead to rise in per capita and disposable income, while savings are expected to be stable.

Insurance growth drivers:

The demand for insurance products is likely to increase due to the exponential growth of
household savings, purchasing power, the middle class and the countrys working population.
Listed below, are the various underlying growth drivers for Indias insurance industry:

Growing of the financial industry as a whole

Growth of life and non-life industry
Promoting innovation and removing inefficiency
Competition and orderly growth
Growth of specific insurance segments such as motor insurance
Emerging trends
Multi-distribution i.e. increasing penetration through new modes of distribution such as the
internet, direct and telemarketing and NGOs
Product innovation i.e. increased levels of customization through product innovation
Claims management i.e. timely and efficient management of claims to prevent delays
which can increase the claims cost
Profitable growth i.e. expanding product range, developing innovative products and
expanding distribution channels
Regulatory trends i.e. mandated regulatory changes by the IRDA to promote a competitive
environment in both the life and non-life insurance sectors

Products strategy and design:

Cost
Taxation
 Distribution
Prospects and challenges of various channels
Compensation
Customer service
Governance and regulatory issues
Non-life insurance: factors impacting growth

The non-life insurance industry has been growing in excess of 20% over the last two years however
the penetration was as low as 0.7% of the GDP in FY10. The key factors for growth include:

Product pricing, innovation and simplicity:

Distribution
Compensation
Micro-insurance in non-life widening reach
Governance and regulatory changes
Health insurance
Innovative products to counter the competition
Improved fraud control mechanisms
Standardization to reduce claims loss
Reducing inefficiencies by revisiting third party administrator (TPA) agreements

Environmental Factor:

The environmental liability risk (i.e. the financial risk associated with environmental
pollution and contamination).

The natural catastrophe risk (i.e. the risk of major damages in connection with the
occurrence of natural disasters, such as earthquakes, floods or other extreme environmental
conditions). Both these environment-related risks, as mentioned, are characterized by the potential
for catastrophic consequences. However, even if they may share some common features, they are
structurally different from the standpoint of the insurer and, therefore, they deserve to be treated
separately in this report. After a brief overview (Part I) of the traditional functioning of the
insurance and reinsurance mechanisms and an introduction to the general problems affecting the
insurability of certain risks, Part II of this study deals with the risk of liability for environmental
pollution, taking into account both factual and legal variables that may affect risk insurability.
Environmental liability risk, in fact, is highly influenced by the underlying legal and regulatory
framework. In this perspective, a theoretical discussion of the most relevant features of an
environmental liability regime is followed by a comparative analysis of the policy choices already
implemented in various legal systems belonging to both the civil law and the common law
traditions, as well as by the evaluation of the most recent developments that are taking place.

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.

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 eight lakh shareholders, with a market capitalization of Rs.53, 400 crore.
A US $29 billion corporation in the League of Fortune 500, the Aditya Birla Group is anchored
by an extraordinary work force of 130,000 employees, belonging to 40 different nationalities. Over
60 per cent of its revenues flow from its operations across the world.

The Aditya Birla Group is a dominant player in all its areas of operations viz; Aluminium, Copper,
Cement, Viscose Staple Fibre, Carbon Black, Viscose Filament Yarn, Fertilisers, Insulators,
Sponge Iron, Chemicals, Branded Apparels, Insurance, Mutual Funds, Software and Telecom. The
Group has strategic joint ventures with global majors such as Sun Life (Canada), AT&T (USA),
the Tata Group and NGK Insulators (Japan), and has ventured into the BPO sector with the
acquisition of TransWorks, a leading ITES/BPO company.

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".

VISION

To be a world class provider of financial security to individuals and corporate 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 corporate. These solutions will be made available by
well-trained professionals through a multi-channel distribution network and superior technology.
Our endeavor will be to provide constant value addition to customers throughout their relationship
with us, within the regulatory framework. We will provide career development opportunities to
our employees and the highest possible returns to our shareholders

BOARD OF DIRECTORS
Mr. Kumar M Birla
Mr. Donald A Stewart,
Mr. Bishwanath N Puranmalka
Mr. Ajay Srinivasan
 Mr. Gary M Comerford
Mr. Suresh N Talwar
Mr. Gian P Gupta
His Highness Maharaja G Singh
Mr. Stephan Rajotte
Dr. Bharat K Singh

INVESTMENT COMMITTEE
Mr. B. N. Puranmalka
Mr. Eugene Lundrigan
Mr. Ajay Srinivasan
Mr. Vikram Mehmi
Mr. Mayank Bathwal
Mr. Fabien Jeudy
Mr. Vikram Kotak
Ms. Keerti Gupta

MANAGEMENT TEAM
Mr. Vikram Mehmi Mr. Mayank Bathwal
President & Chief Chief Financial Officer
Executive Officer

Mr. Mario Braganza Mr. E.N. Goveia

Chief Operating Officer Head - Direct Sales
Force

Mr. Amit Punchhi Mr. Bhavesh Sanghvi

Senior Vice President - Head - Group Life &
Third Party Distribution Pensions

Mr. Snehal Shah Ms. Anjana Grewal

 Senior Vice President - Senior Vice President -
Operations Marketing &
Communications
Mr. Rajesh Bhojani Mr. K H Venkatachalam
Senior Vice President - Vice President - Human
DSF Expansion Resource

Mr. Fabien Jeudy Mr. Lalit Vermani

Vice President, Chief & Vice President -
Appointed Actuary Compliance

Mr. Melvyn D'souza Mr. Vikram Kotak

Vice President - Risk Vice President -
Management and Investments
Internal Audit
Mr. Bhalachandra Nayak
Vice President Strategy
PRODUCT PROFILE
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
Protection Plans
Savings Plans
Child Plans
Investment Plans
Retirement Plans
Group Plans
Rural Plans
 Plans for NRIs
Keyman Plans
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
o On death the entire sum assured will be paid.
o On maturity, all the premiums paid will be returned.
Level Term Assurance without return of premium
o On death the entire sum assured will be paid.
o No survival or maturity benefits.
o 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:
o On death the entire sum assured will be paid.
o 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.
Invest Shield Cash
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) Invest Shield Life
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 plans are
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.
b) Invest Shield Gold
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.
c) Premier Life
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.
d) Lifetime
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.
Savings
Flexibility to increase or decrease your contribution.
Facility of Premium Holiday, wherein the policy continues even if there is a temporary
break in the payment of annual contribution (available only with Life Time).
Facility of Automatic Cover Continuance, wherein the policy continues even if there is a
temporary break in the payment of annual contribution
Facility to top-up your investment any time you have surplus funds.
Additional allocation of units on a periodic basis.
Loans against the policy.
Investment
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).
You can also enhance your policy by adding Critical Illness Rider, Major Surgical Assistance
Rider, Accident & Disability Benefit Rider, Accident Benefit Rider (available only with Life
Time) and Waiver of Premium Rider.
e) SECURE PLUS
An insurance plan that gives added protection, savings and multiple options, all in one
The flexibility to choose your premium contribution.
The flexibility to choose amongst three levels of cover (in the form of sum assured) for the
same amount of total annual contribution.
The flexibility of shifting between the three levels of cover, as you require.
The flexibility of receiving your maturity proceeds as a lump sum or in equal annual
installments over 3 or 5 years.
You can also enhance your policy by adding Variety of Riders.
f) Cash Plus
An insurance plan that gives you added protection, savings, multiple options, plus the power of
liquidity.
The flexibility to choose your premium contribution.
The flexibility to choose amongst three levels of cover (in the form of sum assured) for the
same amount of total annual contribution.
The flexibility of shifting between the three levels of cover, as you require.
The flexibility of receiving your maturity proceeds as a lump sum or in equal annual
installments over 3 or 5 years.
The flexibility of withdrawing up to 10% of the accumulated value of your policy, after the
first 5 policy years.
You can also enhance your policy by adding Variety of Riders
g) Save n Protect
An ideal plan for those who want to accumulate funds on a regular basis while enjoying insurance
protection.
 Guaranteed Benefits
Extended Life Cover
Maturity Benefit
Death Benefit
You can also enhance your policy by adding Critical Illness Rider Major Surgical Assistance Rider
, Accident & Disability Benefit Rider , Waiver of Premium Rider (WOP).
CHILD PLANS
As a responsible parent, you will always strive to ensure a hassle-free, successful life for your
child. However, life is full of Uncertainties and even the best-laid plans can go wrong. Heres how
you can give your child a 100% safe and assured tomorrow, whatever the uncertainties. Smart Kid
is especially designed to provide flexibility and safeguard your childs future education and
lifestyle, taking all possibilities into account. Choose from amongst a basket of 4 plans:
Smart Kid regular premium
Smart Kid unit-linked regular premium
Smart Kid unit-linked regular premium II
Smart Kid unit-linked single premium II
All these plans offer you:
Financial Benefits
Total peace of mind, even if you are not around
Sum Assured is paid immediately
All future premiums are waived
Policy benefits continue
Development Allowance
All Smart Kid plans can be enhanced with the Accident & Disability Benefit Rider and Income
Benefit Rider. You can also an Accident Benefit Rider to a Smart Kid Regular Premium policy,
and a Waiver of Premium Rider (WOP) to Smart Kid unit-linked regular premium policy.
INVESTMENT PLANS
Life link II
Life Link II is a unique plan that combines the security of a life insurance policy with the
opportunity of enjoying high returns on your investments, without the market risks compromising
on the protection of your family!
Death Benefit: The Sum Assured under the product has 2 options, either 500% of the initial
premium or 105% of the initial premium. In the event of an unfortunate death, the beneficiary will
receive higher of the value of units or the initial death benefit, less any withdrawals.
Withdrawal Benefit: One can make partial withdrawals from the accumulated value of the policy
after completion of one policy year.
Flexibility: Choose from four fund options, based on your investment objective and risk appetite.
If at a later stage your financial priorities change, you can switch between the various fund options,
absolutely free, 4 times a year.
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 risk are you willing to take on your investments?
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:
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.
RURAL PLANS:
BSLI Rural Products are designed to meet the needs of the rural consumers. These products offer
the following features:
Low and Affordable Premiums
Life Cover
Savings Option
Hassle free procedure
PLANS FOR NRIS
Being away from India doesn't mean you have to compromise the safety and security of your loved
ones. In fact, your savings from your time overseas can be easily canalized to meet your family's
needs - now and in the future. So, whether its your dream to retire in your hometown; to secure
funds for your children's education; or to build assets, BSLI has a range of solutions that can be
customized to meet your needs.
ORGANIZATIONAL CHART (OR) STRUCTURE:

BOARD OF DIRECTORS

CEO

Company Chief Chief Chief Chief Chief

secretary Manager Manager Manager Manager Manager
(personal) (claims) (Oprtns) (finance) (marketing

Dy. Area Area Regional

Dy. Manager
Manager manager manager Manager
Manager (Audit)
(Personnel) (Oprtns) (Marketing)
(Finance)

Manager Customer Manager Manager Sales Admin.

(Audit) Support (Branch (Processin Manager Officer
Manager operations) g Hub) (Marketing)