SBI LIFE INSURANCE

A STUDY
ON
RECRUITMENT FOR THE POST OF
INSURANCE ADVISOR
SUMMER TRAINING PROJECT REPORT SUBMITTED FOR THE
PARTIAL FULFILLMENT
OF
MASTER’S DEGREE
IN
BUSINESS ADMINISTRATION

SESSION (2006-2008)

UNDER THE GUIDANCE OF

Mr. ABHISHEK DUBE

(AGENCY MANAGER)

SUBMITTED BY:

MONIKA AGRAWAL

DEPARTMENT OF MANAGEMENT STUDIES

MODI ISTITUTE OF MANAGEMENT & TECHNOLOGY,
MODI EDUCATION COMPLEX, DADABARI EXT.,
KOTA–324009 (RAJ.)
 PREFACE
In the insurance industry, there are two channels of distribution –Alternative distribution
and tide agency. Advisor recruitment is the part tide agency.
My project is about agency recruitment and channel distribution of SBI life insurance. Its
means company is recruiting advisor for expanding its business. Company adopts chain
marketing as a methodology for expansion.
In this project, I have to make a cold call to the target market, get the appointment with
them, convince them & close the sale positively. The queries, which asked by the client,
should be solved by the discussion with the company guide.
SBI is immensely concentrating on the agency recruitment. It has 33000 advisors and it is
planning to extend this number to 53000 by the end of the year 2006-07.
For recruiting advisors, SBI hold many activities like they do direct marketing for
recruitment of advisors, they also recruit the management trainee for recruitment of
advisors, they also do seminar and also include stall activities etc…
The Researcher express his sincere gratitude to MR. Abhishek Dube (Agency
Manager), his project guide who was so cooperative and helpful from the first day of his
training till its end. He also helped him a lot enhancing his knowledge about the
technicalities of Insurance sector. The researcher highly thankful to him for providing
him constant support and encouragement throughout the project. The researcher also
thankful to his team members for giving him the live experience of market and
customers.
 ANKNOWLEDGEMENT

Achieving a milestone for any person is extremely difficult. However, there are
motivations, which come across the curvaceous path like twinkling stars in the sky and
make our task much easier. It becomes my humble and foremost duty to acknowledge all
of them.
I am deeply indebted to and express my sincere appreciation and gratitude to
Mr. Abhishek dude(Agency manager) of SBI Life Insurance Company Ltd. for
providing their valuable guidance and encouragement throughout the summer training for
keeping my morale up and making it possible to complete and submit this project of mine
in time.

I feel privilege to thanks to Mrs. Swati Sharma (faculty-MIMT), who as a guide

and mentor, has extended all possible support, cooperation and guidance in completing
my project work. Mr. Abhishek dube for his support and good wishes.
It would be unfair on my part if I do not thank my heartful thanks to my
colleagues for their unstinting help without which this work could never have been
accomplished. They made me realize the importance of a team, teamwork and also the
leadership skills. I am grateful to all of them for standing with me and supporting me in
this project.

DECL
ARATION
I hereby declare that the present report entitled’ “Segment analysis of recruiting
advisors at SBI Life Insurance KOTA” is bevel on my original work and indebtedness
to other work / Publication has been duly acknowledged at relevant place.

(Monika Agrawal)

MBA -II
 EXECUTIVE SUMMARY

Being a management trainee at SBI life insurance Kota, my objective was to study the
profile of Recruitment of Advisors from different localities of Kota

The Study of knowing different profile of Advisors working or interested to work in SBI
life insurance Kota involves Demographic background, Educational background,
Experience background, and Industry background.

Beside this, It helps to identify successful Advisor and study their success patterns. This
involves the following activity.

 Setting Success Parameters for Recruitment of Advisors.

 Measuring the Business Performance with Business Parameters.

To give a strong base to my study I under took a Research at the Kota region and used
Questionnaire, personal interview and determining the Success parameter for Advisors. The
research gave findings to make conclusion about the success of Advisors on the basis of
their Age, Bachelor Qualification, Work field Experience.

From this report give the following Conclusions

 Advisors who are P.G’S are around 35 % and 65 % are graduates only.
 Most of the Advisors are B.Com.
 Maximum age of Advisors fall above the 30 age group.
 2 Advisors are turnout out of 10 .
 About 50 % of Advisors are able to achieve the yearly targets of
annualized premiums and around 35 % of Advisors fall short of the
yearly targets by 20 %.
 CONTENTS

 OBJECTIVES OF THE STUDY

 INTRODUCTION
 INDUSTRY PROFILE
 ORGANIZATION PROFILE
 ESTABLISHMENT OF THE COMPANY
 COMPANY VISION, MISSION STATEMENT AND AIM OF THE COMPANY
 ORGANIZATION STRUCTURE
 PROJECT: RECRUITMENT
 INSURANCE INDUSTRY AS A CAREER.
 ROLE OF INSURANCE AGENT
 PERSONAL DEVELOPMENT OF AN AGENT
 LIFE INSURANCE MARKETING
 RESEARCH METHODOLOGY
 ANALYSIS
 ADVANTAGES
 LIMITATIONS
 RECOMDATION
 QUESTIONNAIRE
 CONCLUSION
 BIBLIOGRAPHY
 OBJECTIVES OF THE STUDY

 To study about the SBI Life Insurance

 To know about the procedure of investment in SBI Life Insurance

 To know about market position of SBI Life Insurance

 To know about customer feedback of SBI Life Insurance

 To find out potential ability of financial advisor of SBI Life insurance

INTRODUCTION
Life insurance is only tools to secure our life in future. It also provides a safe guard to the
uncertainty of our life. Life insurance is the cheapest investment tool in which we can
earn more in the short period of time.

In the word of D S HANSELL “Insurance may be defined as a social device provide

financial compensation for the effect of misfortune, the payment being made from the
accumulated contribution of all parties participating in the scheme”

The function of the insurance to protect u against losses you can’t afford. Insurance
reduces anxiety over a possible loss and absorbs the financial brunt of its consequences.

India is a traditionally been a high saving oriented country being on par with the thrifty
Japan. Insurance sector in united state of America is as big in size as the banking industry
there. This gives us an idea of how important this sector is? Insurance sector canalizes the
savings of the people to long term investment. In India where infrastructure is said to be
of critical importance, this sector will bring the nation own money for the nation.

1. The global insurance market stands at $1,521.2 billion while the non life
insurance market is placed at $922.4 billion.
2. India takes the 23rd position with US $9.933 billion premium collection and a
merger 0.41% share.

Out of the billion people in India, only 35 million people are covered by insurance.
India market is set to touch $25 billion by 2010, on the assumption of a 7 per cent real
annual growth in GDP.
In 3 year times we would expect the 10% of the population to be under some of an
insurance cover.
 INDUSTRY PROFILE

INTRODUCTION OF INSURANCE
The business of insurance is related to the protection of the economic values of assets.
Every asset has a value.
The asset would have been created through the efforts of the owner. The asset is valuable
to the owner, because he expects to get some benefits from it. The benefit may be an
income or some thing else. It is a benefit because it meets some of his needs. In the case
of a factory or a cow, the product generated by is sold and income generated. In the case
of a motor car, it -provides comfort and convenience in transportation. There "is no direct
income.
Thus, he makes sure that the Value or income is not lost. However, the asset may get
Earlier. An accident or some other unfortunate event may destroy it or make it non-
functional. In that case those deriving benefits there from would be pried of the benefit
and the planned substitute would. l have been ready. There is an adverse or unpleasant
tuition. Insurance is a mechanism that helps to reduce effect of such adverse situations.

BRIEF HISTORY OF INSURANCE

The business of insurance started with marine business. Traders, who used to gather in
the Lloyd's coffee house in London, agreed to share the losses to their goods while being
carried by ships. The losses used to occur because of pirates who robbed on the high
seas or because of bad weather spoiling the goods or sinking the ship. The first
insurance policy was issued in 1583 in England. In India' insurance began in 1870 with
life insurance being: transacted by an English company, the European and the Albert.
The first Indian insurance company was the “Bombay Mutual Assurance Society
Ltd”, formed in 1870. This was followed by the Oriental Life Assurance Co. in 1874,
the Bharat in 1896 and the Empire of India in 1897.
Later, the Hindusthan Cooperative was formed in Calcutta, the United India in Madras,
the Bombay Life ill Bombay, the National in Calcutta, the New India in Bombay, and the
upiter in Bombay and the Lakshmi in New Delhi. These were all Indian companies,
started as a result of the swadeshi movement in the early 1900s. By the year 1956, when
the life insurance business was nationalizes and the Life Insurance Corporation of India
(LIC) war formed on 1 1st September 1956, there were 170 companies and 75 provident
fund societies transacting life insurance business in India. After the amendments to the
relevant laws in 1999, the L.I.C. did not have the exclusive privilege of doing life
insurance business in India. By 31.3.2002, eleven new insurers had been registered and
had begun to transact life insurance business in India.

PURPOSE & NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed, through accidental insurances.
Such possible occurrences like Fire, floods, breakdowns, lightning, earthquakes, etc, are
perils. If such perils can cause damage to the asset, we say that the asset is exposed to
risk. Perils are the events. Risks are the consequential losses or damages. The risk to a
owner of a building, because of the peril of an earthquake, may be a few lakhs or a few
crores of rupees, depending on the cost of the
buildings and the contents in it.
The risk only means that there is a possibility of loss or damage. The damage may or
may not happen. Insurance is .one against the contingency that it may happen. There
are to be an uncertainty about the risk. Insurance is relevant only if there are
uncertainties. If there is no certainty about the occurrence of an event, it cannot be
lured against. In the case of a human being, death is retain, but the time of death is
uncertain. In the case of a resin that is terminally ill, the time of death is not
certain, though not exactly known. He cannot be insured.
Insurance does not protect the asset. It does not prevent its vale due to the peril. The
peril cannot be avoided through insurance. The peril can sometimes be avoided,
through better safety and damage control management. Insurance only tries to reduce
the impact of the risk on the owner of e asset and those who depend on that asset.
Only economic consequences can be insured. If the loss is the financial,
insurance may not be possible. Examples of economic losses are love and
affection of parents, leadership of managers, sentimental attachments to family,
innovative and creative abilities, etc.
 ADVANTAGES OF LIFE INSURANCE
 Life insurance has no competition from any other business.
 Many people think that life insurance is an investment or a means of saving.
 When a person saves, the amount of funds available at any time is equal to the amount
of money set aside in the past, plus interest.
 This is so in a fixed deposit in the bank, in national savings certificates, in mutual
funds and all other savings instruments.
 If the money is invested in buying shares and stocks, there is the risk of the money
being lost in the fluctuations of the stock market.
 Even if there is no loss, the available money at any time is the amount invested plus
appreciation.
 In life insurance, however, the fund available is not the total of the savings already
made (premiums paid), but the amount one wished to have at the end’ of the savings
period (which is the next 20 or 30 years).
. There is a certain amount of compulsion to go though the plan of savings. In
other forms, if one changes the original plan of savings, there is no loss. In insurance,
there is a loss.
 Creditors cannot claim the life insurance moneys. They can be protected against
attachments by courts.
 There are tax benefits, both in income tax and in capital gains
 Marketability and liquidity are better. A life insurance policy is property and can
be transferred or mortgaged. Loans can be raised against the policy.
IRDA MISSION

To protect the interest of the policyholder, to regulate, promote and ensure orderly
growth of the insurance industry and for matters connected therewith or incidental
thereto.

COMPANIES OF INSURNACE INDUSTRY

S.No. Registration Date of Reg. Name of the Company

Number

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited .

8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited

9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

10 117 06.08.2001 MetLife India Insurance Company Pvt. Ltd.

SBI VISION

To make SBI the dominant Life and Pensions player built on trust by world-class people
and service.

STRATEGY This we hope to achieve by:

 Understanding the needs of customers and offering them superior products and

service
 Leveraging technology to service customers quickly, efficiently and conveniently
 Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
 Providing an enabling environment to foster growth and learning for our
employees
 And above all, building transparency in all our dealings.
COMPANY VALUES

The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the
values describe what the company stands for, the qualities of our people and the way we
work.
We do believe that we are on the threshold of an exciting new opportunity, where we can
play a significant role in redefining and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.

COMPANY PROFILE

SBI Life Insurance is the 3rd largest private life insurance company in the country, with
total premium income exceeding Rs. 1000 crore in 2005-06, and the first to declare a
profit after just 5 years in operation. SBI Life is a joint venture of SBI, India's largest and
most trusted bank for 200 years, and Cardiff, the insurance arm of BNP Paribas with
global expertise. We take pride in our track record of growth, financial solidity, ethical
practices, domain expertise, and meritocratic culture. Expect a rewarding and an
enriching career when you join us. We invite candidates with strong interpersonal and
communication skills, and with a will to excel, to join us:
 ORGANIZATION PROFILE

SBI BANK CARDIDFF

Alliance

SBI LIFE
INSURANCE CO. LTD.
 ORGANIZATION STRUCTURE

TOP MANAGEMENT

INVESTMENT SALES OPERATION

DEPARTMENT DEPARTMENT DEPARTMENT

FUNDS MANAGERS AREA OPERATION

MANAGER MANAGER

AGENCY OPERATION
MANAGER STAFF
 ADVISORS

PROJECT

RECRUITMENT FOR THE POST

OF INSURANCE ADVISOR IN SBI

INSURANCE AGENCY AS A
CAREER
INSURANCE AGENCY AS A CAREER

Defination of an agent
Insurance agent is one who acts on behalf of another. The another' on whose behalf the
agent acts, is called the Principal. This is the simple definition. The lawyer is the agent
of the client, when he argues the case in court. An ambassador is an agent of his
country.
.According to Section 182 of the Indian Contracts Act, an agent is a person employed to
do any act for another or represent another in dealing with a third person. The person
for whom such act is done or who is so represented called the 'principal'. In the
insurance industry , the term ‘Agent’ is ordinarily applied to a person engaged by the
insurer to procure new business.
Under Section 183 of the Contracts Act, any person who is a major, according to the
law to which he is subject, and' who is of sound mind, can employ an agent. Section
1841 provides that as between the principal and third persons" any person may become
an agent. Thus, though a minor may be employed as an agent and the principal would
be; bound by his actions, the minor himself will not be liable to his principle.

METHODS OF REMUNERATING AGENTS

A life insurance agent works on commission basis. He is paid a stated percentage of the
premium collected through his agency. Section 40A( 1) of the Insurance Act stipulates
that the maximum amount which can be paid to a life insurance agent, by way of
commission or remuneration in any form, shall be. 35% of the first year's premium, 7 1/2
% of the second and third year's renewal premium and 5% of subsequent renewal
premium.
There are some exceptions to this. During the first ten years of the insurer's business, he
may pay 40% instead of 35 % of first year's premium. Under certain circumstances,
commission of 6% can be paid on the renewal premium even beyond the third year.
Within these limits, the manner of remunerating the agent will be determined by to the
insurer all the true facts about the prospect and the subject of insurance. He should not
mislead either.

PROCEDURE FOR BECOMING AN AGENT

The Insurance Act, 1938 lays down that an insurance agent must possess a licence under
Section 42 of that Act. The licence is to be issued by the IRDA. The IRDA has authorized
designated persons, in each insurance company, to issue the licences on behalf of the
IRDA. The fee for the licence, the manner of making an application, etc., have been
described in the IRDA Regulations.
A licence issued by the IRDA will be valid for three years. The licence may be to act as
an agent for a life insurer, for a general insurer or as a "composite insurance agent"
working for a life insurer as well as a general insurer. No agent is allowed to work for
more than one life insurer or more then our general insurer.
The qualifications necessary before a licence can be given are that the person (individual
or corporate insurance executive) must be at least 18 years old have passed at least the
12th standard or equivalent examination, if he is to be appointed in a place with
Population of 5000 or more, or 10th standard otherwise have undergone practical training
for at" least 100 hours in life or general insurance business, as the case may be, from an
institution, approved and notified by the IRDA. In the case 'of a person wanting to
become a composite insurance agent, the applicant should have completed at least 150
hours practical training in life ~d general insurance business, which may be spread over
six to eight weeks.
He has to pass the pre-recruitment examination conducted by the Insurance Institute of
India or any other examination any recognized by the IRDA.

A person with the following disqualifications is debarred from holding a license:-

  He has been found to be of unsound mind by a court of competent jurisdiction.

 He has been found guilty of criminal breach of trust, misappropriation, cheating,

forgery or abetment or attempt to commit any such offence.

 The licence once issued, can be cancelled whenever the person acquires a
disqualification.

A applications for renewal have to make at least thirty days before the expiry of the
licence, along with the renewal fee of Rs. 250. If the application is not made at least
thirty days before 'the expiry, but is made before the date of expiry of licence, an
additional fee of Rs. l00 is payable. If the application is made after the date of expiry,
it would be normally be refused.
The licence once issued, can be cancelled whenever the person acquires a
disqualification.
Applications for renewal have to make at least thirty days before the expiry of the
licence, along with the renewal fee of Rs. 250. If the application is not made at least
thirty days before 'the expiry, but is made before the date of ( expiry of licence, an
additional fee of Rs.l 00 is payable. If (he application is made after the date of expiry,
it would be normally be refused.
 ROLE OF INSURANCE AGENT
An insurance agent is defined in the Insurance Act. He requires a licence to be able to
function as an agent. He is remunerated by way of commissions on the premium paid
under policies procured through his efforts. Insurance designate agents differently like
consultants, advisors and so on. The designations do not matter. He is the main
component of the distribution channel for the life insurance business.
A life insurance agent would be required to solicit and procure new life insurance
business, in a manner that is consistent with the interests of the policyholders and the
insurance company. For this purpose, he would ha to do the following.

 Contact prospects for life insurance, study their neo and persuade them to
buy.
 Complete all related formalities, including filling proposal forms, collecting
premium, arrange medical examination, collecting proofs (of age, income),
reports and other information required the underwriter.
After having sold a new insurance policy, the agent has to ensure that the policy
continues, without a lapse, till becomes a claim. The conservation of the policy is in
interests of all the three persons concerned, the insurer, policyholder and the agent. For
this purpose, he has to,
 Keep in touch with the policyholder to make sure that renewal premiums are
paid in time.
 Ensure that nominations - are made or changed according to changing
circumstances.
 Assist in settlement of the claim, by helping the claimants to complete the
necessary formalities and requirements.
The other function is to be of assistance to the. policyholder in case he needs a loan
under the policy or wants to make an assignment. These services strengthen the
relationship between the agent and the policyholder

ELLING INSURANCE
 PRE-APPROACH
 APPROACH
 INTERVIEW
 OBJECTION
 CLOSE

PRE-APPROACH
Pre-approach means preparing to approach the prospect. The requires forming some idea
as to how the interview could begin and proceed, for which you require basic information
regarding his income, his habits, his concerns, his interests, .his saving capacity, his
family position, etc .These facts can be had from a variety of sources, and you may even
have to make a personal call on the man himself, and get from him the facts you need to
persuade him in taking a decision. If such a call is made, the proposal for insurance is not
made at that stage, although in some circumstances a pre-approach call may develop
further end with the proposal and cheque.

The information collected during pre-approach will provide a reasonable idea of the
prospect's financial position and his needs and concerns, and help to make a tentative
recommendation of a plan. If you make the sale first in your mind, you will find it easy
to make the sale to the prospect.
It is advisable to write down the proposal. The advantages of a written proposal are

1. Details are not missed by either the agent or the prospect.

2. The impression is more lasting.
3. The prospect can go back to earlier data on his own. The prospect can understand,
at his own pace.
 4. It is easy to stop at any point, clarify questions and continue further without losing
4the trend.

APPROACH
When you knock on the prospect's door and are face to face with him, the dynamic phase
of sales begins. You should make known to the prospect, at the very earliest that you are
calling on him for life insurance. Then' is no need to hesitate on this or to 'feel apologetic.
The agent has to believe that he is calling on the prospect to render him the valuable
service of ensuring financial security for him and his family.
The agent should open the talk by explaining the purpose of his call in such a way so as
to arouse enough interest Otherwise, he may not pay attention to the proposal. In most of
the cases, the situation may arise where the prospect will come out with a 'No'. At this
juncture or approach, when the prospect says 'No', the agent should not be in a hurry to
convert the 'No' into 'Yes'. The purpose of the approach stage is not to sell insurance, but
to sell an interview, which gives him the opportunity 11 talk about what he wants the
prospect to think about.

INTERVIEW
The interview should first of all, make the prospect listen. This happens if the agent
refers to things which interest him, his needs, or things that matter to him, without
making it appear like patronising or flattering. Any hint that the prospect's decisions of
the past (relating insurance or investments) were not appropriate or need to be
changed, will have the opposite effect. The proposal being made by the agent should
be seen as beneficial and complimentary to the existing arrangement.

The agent should follow some simple rules like the ones mentioned below
1. Do not talk more than necessary.
2. Ask questions, and make the prospect talk. Make it interactive.
3. Create doubts and get him to ask questions clarification.
 4. Listen to the prospect's point of view carefully, not interrupt, contradict or argue.
People feel when they are listened to and then they listen better.
5. Make your talk interesting. Tell a true story of how life insurance has helped
families in various situations and how families have suffered without it. Make the
story have a personal appeal. Use names of his children or relatives. That will
make the story more appealing.
6. Use pictorial aids, graphics and written presentations. If you have a lap top use
Power Point presentation.
7. Let the prospect write down the figures of his needs, of his liabilities, of benefits
of the insurance plan and of the premium. This ensures concentrated attention.
Let your advice be in the best interest of the prospect, not your interest.
Successful agents prepare their presentations carefully every time. They rehearse in their
minds the way the 'interview should proceed. This ensures that they do not fumble for
ideas or the right words. The ideas, too, come in the most natural and logical sequence.
Lastly, a prepared sales talk conveys more enthusiasm and conviction than a talk
without preparation. A well prepared approach ensures a favourable interview.

OBJECTION
Prospects will raise objections, one after another. Objections are a part of every sale. If
prospects did not object, there would be no need for salesmen. People would buy on their
own. Also, if the prospect remained, silent, you will not know how his mind is working.
The objection is his way of referring to the further information that he needs.

The entire selling process is, therefore, interspersed with objections. At the stage of

approach itself the prospect may say - 'I do not believe in life insurance'. 'I do not need
life insurance’ and the like. Such objections are not against life insurance but rather
against the agent whom he wants to put off gracefully, or signs of indecision, or of a
fear of being “forced” in to being “forced” into buying.
Then, there are objections during the interview, like, 'I pay more than what I get back', 'It
is advantageous only if I die', and ‘Meet me after six months'. Such objections, which
come up during the main discussion are real objection. However, their intention is not to
put you off. It is quite the contrary. The prospect wants you to convince him. He wants
you to give him detailed information that will remove his fears and doubts and to back
up his latent or unstated desire to buy. Every objection tells you about the prospect's
thinking and gives you an opportunity to remove his mental blocks. Indeed, a prospect
who puts forward an objection, is actually asking you to give him one more reason to
buy. A true agent should therefore welcome objection.
Then there are objections raised at the closing stage, such as I will think it over', 'I will
consult my father', I me next month when 1 get my confirmation / increment promotion,'
etc. these objections reveal an inability take a major decision.

CLOSING
The 'close' has to be sensed and timed, because very few prospects will, of their own
accord, say 'I will insure'. The agent sensing the close , takes the prospect's positive
decision for granted by asking for his implied (not direct) consent. "Will you pay the
premium by cash or cheque?", "Do you have your school certificate at hand now or can
you give it tomorrow?" (affirmative choice). A positive answer to any of these questions
is an indication to go ahead. If the interview does not end with a close and is put off to
another time, the interview will have to be gone through an over again.

In selling life insurance, an appeal to the heart of the prospect is more useful than an
appeal to the head. Life insurance is bought for the prime reason of protecting the loved
ones, affording a good start in life to the children, duty to aged parents, or perhaps a
desire for self preservation in old age. So a sale can be accomplished 'only when an
appeal is made to one of these motives; an 'appeal to sentiments of love, of affection and
of concern. The agent need not be an expert in psychology to do this.
PERSONAL DEVELOPMENT

This topic' deals with the development of an agent who is an individual, not a company
or firm. In the case of the latter, this topic would be relevant for the director or partner or
any other employee who may be performing the functions of meeting prospects,
persuading them, etc.
Personal development would result in. enhancing one's capabilities to function as an
agent. This would be measured partly by the business that is done and the commission
~

that is earned. It is also to be measured in terms of the reputation that the person enjoys
in the market. Agents can be spoken of well, as a person 'who knows, who can be
trusted to look after the customer's interests, who does not mislead, who is nice to deal
with and so on. It is such reputations that help one to collect more and more references
from satisfied policyholders and thus expand one's circle of contacts.

PRODECT KNOWLADGE
The primary requirement is to become' quite conversant with the product that one sells.
i

In other words, product knowledge is important.' Product knowledge does not end with
knowing the broad terms and conditions of the various plans of insurance. One has to be
aware of the possible drawbacks in the policy, the tax implications, the fit with the
client’s needs, the extent to which the client has to take precautions so that the benefits
may not be lost and so on. The agent must have knowledge of all the products offered
by the insurer for whom he works, and not merely of the few which are most frequently
sold.

CUSTOMER ORIENTATION
An agent is a professional, in the sense that there is a body of specialized knowledge that
has to be studied an mastered. He is also a businessman. As a professional he has to keep
his client's interests in mind and not hi personal gains from a transaction. As a
businessman, he is concerned with the money that he makes from the transaction. The
experience of highly successful agents i that if the client's interests are taken care of and
they al1 satisfied, one's business tends to grow steadily. There is no conflict between the
two. Both go hand in hand.
Customers are entitled to full information from those who provide services. This
requirement, the right information is enshrined in the “Consumer Protection Act” The
law is only stating a principle which every successful salesman practices. In the case of
life insurance the person representing the insurer and having the responsibility inform
the consumer, is the agent. Before the agent can inform the consumer, he has to be
informed himself. "That is why it is repeatedly pointed out that product know It'" is
important.

PERSONAL GROWTH
Agents may have personal goals, like wanting to rise in the hierarchy of the company.
Some companies do provide opportunities for agents to accept higher responsibilities.
One might like to become a senior agent, helping newcomers in the field. Some senior
agents make it a point to attend seminars, workshops and conferences. They meet others
in the profession. The benefit is mutual. They receive as well as .give, as experiences
differ and are unique. Professional agents set aside both funds as well as time for such
purposes. The pay-off is high, although not immediately visible.

RECORD AND REVIEW

Every individual has to manage himself well. Salesmanship, which the agent will master
in course of time, is different from management. One does not have to be appointed as a
manager in a company to learn management. Management' is nothing more than using
one's resources well, in order to achieve the desired results. This implies that one has to
always look al whether one is getting or not getting what one is trying to get (goals) and
also whether one is utilizing one’s resources properly.

A good manager continuously' finds ways to improve the utilization of his resources. The
resources include skills, knowledge, materials, money and time. If one is able to get at
one's goal with lesser expenditure of resources, there is improvement. If the distances
traveled per call reduce, as a result of better scheduling of the movements, there is
improvement. If there is a reduction in the number of hours or calls required to complete
a sale, there is improvement. Like this, a number of inputs can be monitored and ways
found to improve both efficiency and effectiveness. To be able to do so, one has to
maintain a record of one's activities and analyze the same periodically. The maintenance
of detailed records is, therefore, the first step to good management of oneself.

TIME MANAGEMENT
One of the resources of any professional is 'Time'. Time is an input in work. The time
taken to do anything is an indicator of the skill of the doer. Novices take more time than
an expert to do the same job. One of the indicators of the professional development of an
agent would be the time he takes to do various activities as an agent, to get an
appointment, to explain a point, to conclude a sale. Time is necessary also for personal
development, to read book and journals, to do physical exercises, to unwind and relax, to
attend spiritual discourses, to reflect on ‘one' , behavior to introspect.
There are 'many things to do and time is required to do them. Many people say that they
do find time to do what they know is important, but has not been done. Many people are
so busy at work, that they do not have enough time to spend with the family. Many
people manage find time for everything, including relaxing. The time available is the
same for everybody, 24 hours a day: How well are we using the available time? This
question can be answered only by each person himself.
Some of the ways in which people waste time are

 Having to do a job again because it was done wrongly. Correcting mistakes in

a job wrongly done takes more time than doing it right the first time. This is
so in arithmetic and in cooking.
 After embarking on a job, we find that the available information is either
not adequate or not relevant and the job has to wait till that information is
obtained.
 Searching for things that have been misplaced or not kept in its proper place.
 Indecisiveness- inability to make up one's mind and keeping on changing one's
 plan.
 Attempts to be perfect. This leads to doing and redoing. It is not necessary to
be perfect.

TARGET MARKET
A good agent has to be clear about the market he is working in. For an insurance agent,
the whole world is potential market. But no one agent can insure the whole world. While
the whole world is the total potential market it is in fact several markets with distinctly
different need, and characteristics. The very rich have different need, compared to the
middle class salary earner. The young have different needs compared to the elderly.
Working women with dependents have different needs compared hi housewives. Thus,
when the total market is viewed in terms of needs, it will break up into a number of
smaller segments.
The target-markets /segments may be identified in term of geographical location
(residence or office), age, occupation, religion, social status, income levels, family size,
or business size, nature of business, technology products, etc. Each, segment has to be
approached in different way. Agents tend to specialized in specific segments of the
market. One big advantage in doing so, that the agent acquires knowledge in depth of that
segment and is also known within that segment. Referrals become easier.
The segment in which an agent operates is called target market / segment. An agent
may have more then one target segment. One agent may be working only within one
department of government, like the police department or one big company with a
salary savings scheme, because he finds that the earnings from source are adequate
and it takes almost all his time servicing the policyholders.

TRUSTWORTHYNESS
An agent sells himself before he sells his product. This may be true in the many cases
but is particularly true in the case of life insurance, because of the very intangible nature
of the product as well as the long-term commitment. The customer buys mainly because
he believes the statements and promises made by the agent. He believes them as if they
are promises made on behalf of the insurance company. He is buying the promise.
Whether he bought the right thing or not, will be known only in the future, when the
promises are to be redeemed. That is the time of the claim. If an agent has to succeed
professionally, he has to continue to enjoy the trust of the, policyholder

LONG TERM RELATIONSHIP

An agent has to strive towards building long term relationships with the policyholders.
Many techniques can be suggested, but all of them depend on one simple principle. The
other person has to feel important and not slighted. He has to feel that his concerns are
uppermost in the agent's mind. The essential requirement is sensitivity to the other
person's feelings and genuine concern for his needs. If there is no genuine concern, the
relationship cannot become strong.
The following may help to build relationships

 An attitude that seeks to help.

 A voiding the slightest hint that the customer is ignorant or is at fault.
 Trying to understand the customer. The slogan 'The customer is always right' does
not mean that his contention or behavior is always right. It means that always,
there is a justification for his behavior or contention. If that is understood, it helps
a lot to keep him satisfied.

 Listening to what the customer says. People feel good when they are listened to.
Listen to the substance, not the words or manners. If he is angry, ignore the anger
and "listen", or pay attention, to the cause of the anger.

MOTIVATION
An agent is an independent professional. He can not wait for someone else to come
along and persuade him action. Others will demand that he perform. He has to feel the
urge and drive to perform. Otherwise he will not do. When a person feels the urge and
drive to do, he is said be motivated.
Why should an agent want to perform? Why should he be motivated? What are his needs
to be fulfilled? None of these answers would be the same for all agents. Even the need
for money may not be the first need for all agents. The need for money will lead one to
complete more and more business. Some agents may want to be counted among the top
agents of the branch or the insurer or the entire country. That may also lead them to do
more and more business. Some may want to be known as the most knowledgeable. That
will lead them to invest time and money in learning, attending lectures and seminars, etc.
That same motivation may also lead some to help and train newcomers into the
profession, to write books and articles based on one's experience. Some may want to
build long-term relationships with the customers. That will lead them to find
justifications to call on the customers as frequently as possible. Some agents may want
to be known as financial consultants providing total financial services to their clients.
This may lead. them to link up, through networks or otherwise, with stock brokers,
security analysts and tax experts, offering mutual funds, new issues, portfolio
management, etc.
Motivations can be varied. The effort to learn and do well ay come also from a
motivation to avoid being among e non-performers. Some agents are driven by the need
to be of help to the community, on matters not directly connected to insurance. That
motivation may lead lo u lot if insurance business coming his way because of the high
esteem in which he is held by the community in which he operates.

MORAL
Customer buys because he trusts the agent and his promises. It implies that the
behavior of the agent has to be one that exudes confidence and positive thoughts about
the insurance company and its offerings. This is possible only if the agent feels good
about his profession and his business.
If he does not feel good, his disappointments and frustrations will be sensed in his voice
and manners and that will harm the process of sales. Feeling good or not good about
one's work is a question of morale or enthusiasm about work. If an agent is convinced
that he is in a noble profession that looks after the welfare of people and their families as
nothing else can do, he cannot but feel good about his work. To keep up his morale, he
has only to say to himself that his is a job that brings cheer. An others at a time, when a
whole lot of circumstances have conspired to take away that cheer. An eminently
successful life insurance agent had said that his commitment to the job became firm
when one of his policyholders died young and he saw that the widow was surrounded by
people - erstwhile friends demanding payment of outstanding bills and mortgages. He

was the only one offering to pay her. How can such an experience of joy in the widow's
face, be anything but uplifting?
Apart from the nature of the business of insurance, the agent must also feel confident
that he is in a position I render effective service to his policyholders. It is possible that
sometimes something may go wrong in the insurance office. The agent is in a position
to make sure that the effects of that error do not reach the policyholder. Good agents
with adequate records can insulate their policyholders from the office, so that they
experience only the positive aspects about the service and claim settlement procedures.
Customer satisfaction and agent's morale will both be high as a consequence.

COMMUNICATION SKILL
Communication is normally understood to refer to the information that one has to send to
another, through words or symbols or pictures, in writing or verbally. Because of its
importance in commercial and private life the process of communication has been
studied and written about extensively.
An agent's main tool at work is his communication skills. He has to explain and to
persuade. Any misunderstanding might become evident only much later. It will then be
attributed to the failure of the agent to inform, alleging even deliberate cheating or
suppression of material facts. Good effective agents make written presentations about
their recommendations for insurance, pointing out both benefits and pitfalls. The written
matter is explained during the sales interview. A further explanation will take place when
the policy delivered to the policy holder.

SEVEN C’S OF GOOD COMMUNICATION SKILL

 Completeness:- Stating all essential facts, anticipating and answering all

 possible doubt .
 Courtesy:- Pleasantly worded , meant to gain goodwill , requesting instead of
commanding.

 Consideration:- Keeping in mind the reader’s interest and level of
understanding.
 Clarity:- Using simple familiars words short sentences , avoiding technical
jargon and uncommon abbreviations.
 Conciseness:- Avoiding superfluous and redundant expression.
 Concreteness:- Avoiding complicated imagery and saying directly , leaving no
room for imagination.
 Correctness:- Particularly with number , dates and references.
 Life Insurance Product
Life insurance products are usually referred to as 'plans' insurance. These plans have
two basic elements. One is only ‘Death cover' providing for the benefit being paid on
the death of the insured person within a specified period. Other is the 'Survival Benefit'
providing for the benefit being paid on survival of a specified period.
Plans of insurance that provide only death cover are called ‘Term Assurance' plans.
Those that provide only survival Benefits are called 'Pure Endowment' plans. If the
insured Does not die within the specified period, no payment is Made under a term
assurance plan. Similarly, if the Insured dies within the specified period, no payment is
made under a Pure Endowment plan. Both these are like Insurance policies. If the
specified contingency does happen, the policyholder does not get anything from insurer.
Plan of insurance plans are combinations of these' two basic plan. A Term Assurance
plan with an unspecified period is called a 'Whole Life policy' under which the Sum
assured (SA) is paid on death, whenever it may occur. A Assurance plan along with a
Pure Endowment plan offered as a single product is called an Endowment assurance
plan, under which the SA is paid on survival of specified period or on earlier death. A
Term Assurance with a Pure Endowment plan of double the value is called a Double
Endowment Assurance plan under which the amount payable on survival is double
the amount payable on death. What is called a 'Money Back or Anticipated
Endowment policy, under which, say 20% ui,. SA is paid on survival every five years
and 40% on survival for 20 years and full SA on death at any time within the 20 years,
is effectively a combination of a Term Assurance plan for 20 years for full SA and 4
different Pure Endowment plans (20% SA for 5 years. 20% SA I'll 10 years, 20% SA
for 15 years and 40% SA for 20 years),
A plan of assurance will have the following features. by : making changes in these
features or adding and combining; some, of them, any number of plans can be
developed.

 Who can be insured? The various possibilities are Individual adults (ii)
children (minors) (iii) two or more persons jointly under one policy.
 What can be the S.A? Some plans stipulate a minimum S.A. There are maximum
limits also for certain benefits, like Accident benefits.
 In what contingency would the S.A be payable Could be on death or on
survival.
 When would the SA be payable? On the contingency happening or some other
dates
 How would the SA be payable? Could be in one lump-sum or in installments.'
 What would be the term (duration) of the policy? This determine the period during
which the specified event should occur for the SA to be payable. Some plans
provide for benefits even beyond the term.
 When would the premium be payable? Variations are in the frequency of
payment (monthly, quarterly half-yearly or yearly), 'as well as the period
during which it is payable. Some plans provide for premium to be paid for a
period less than the term.
SOME POPULAR INSURANCE PLAN
All insurers do not offer all plans. The same plan may be called by different name
by insurers. The variations between insurers are plenty. It is not possible to give details of
all the plans offered by all the insurers, mainly because insurers make change in their
offers or practices from time to time. if a reference is made to a plan of any particular I
insurer the accuracy of the information is not to be taken granted.
1. HORIZON II PENSION
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY
THE POLICYHOLDER

Introduction
A unique Unit Linked Pension Plan that will enable you to build a kitty good enough to
enable you to spend a peaceful and financially sound Retired life!
Horizon II Pension is a safe and a hassle free way to get high returns! Horizon II Pension
comes with the unique feature of Automatic Asset Allocation by means of which you
truly, don’t need to be an expert to grow your money!

Key Features:
Horizon II Pension is the most simple unit linked pension plan; all you need to do is:
o Choose your retirement date, the plan option and the regular premium
amount.
o Based on the plan option and the term opted, SBI Life will invest your
money in three different funds viz., Equity Pension Fund, Bond Pension
Fund and Money Market Pension Fund.
o The funds are invested keeping in mind the term opted for and your
money is invested in safer funds as your policy approaches maturity.
 Available with two options:
o Pure Pension
o Pension cum Life Cover
 No medical required to enroll for Pure Pension
 Save tax upto Rs.33,600*/- p.a. u/s 80 CCC (1) of IT Act.
 Facility of top up available to boost your retirement kitty anytime during the
policy term.
No premium allocation charges from year 11 onwards.

*For highest tax bracket. Consult your tax advisor for details

 Unit Plus Bond Fund portfolio details as on 31 march 2007

Money market instrument 63.99 %

Government securities 32.05%
Corporate sector 30.96%

SBI Life Insurance Company is a 74: 26 Joint venture between SBI and Cardiff S.A. The
company was registered on 31/3/2001.It is a private sector company. The market share
for the first eight months of FY 2005-06 is 1.52%.
2.Unit Plus II Pension (UIN No: 111L032V01)
In this policy, the investment risk in investment portfolio is borne by the
policyholder i

Introduction

We at SBI Life understand the basic needs for pension plan and give you financial
strength to maintain your life style even after the retirement. Unit Plus II Pension plan
makes sure that you have regular income after you retire and also helps you to maintain
your standard of living.

This is a unit linked pension plan wherein the policyholder chooses an investment period
from 5 to 52 years for a vesting age between 50 to 70 years. You can choose to pay either
single premium or pay regular premium for the entire policy term. Your contributions are
invested into 4 fund options as per your choice. P
O
Key Features
LICYHOLDER
 Choice to invest & control four different funds as per your risk appetite.
 Flexibility to choose between two options
o Pure Pension
o Pension cum Life Cover
 No medical required for Pure Pension, automatic acceptance facility.
 Save tax upto Rs.33,600/-* p.a. u/s 80 CCC (1) of IT Act.
 Flexibility to increase regular contribution.
 Top up payments: any amount, anytime.

Customize your plan by adding riders.

3.Unit Plus -II Plans

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS

BORNE BY THE POLICYHOLDER
It may be difficult to understand all your needs but as your preferred life insurance
company, SBI Life definitely understands all your financial & insurance needs. Unit Plus
II Plans are an attempt to meet all your financial & insurance needs through a single non
participating product. You can use it the way you like. What’s more you get market linked
returns which in the long term has always proved to give better returns than traditional
savings products.
SBI Life Unit Plus II Plans: 2 plans depending on your premium mode:
1. Single Premium Mode : Unit Plus II Single
 2. Regular Premium Mode : Unit Plus II Regular

4. Horizon- II( UIN No: 111L027V01)

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE

POLICYHOLDER

Introduction

SBI Life’s HORIZON II is a unique, non participating Unit Linked Insurance Plan in
Indian Insurance Industry, where you need not to be a financial market expert. This plan offers
the flexibility of Unit Linked Plan along with Automatic Asset Allocation which provides
relatively higher returns on your money where as increasing death benefits provides higher
security to your family.
 Unique Features:

 Automatic Asset Allocation: HORIZON II comes with the unique feature of

Automatic Asset Allocation by means of which you truly, don’t need to be an
expert to grow your money! HORIZON II as a concept is formulated in
association with our partner Cardiff SA of France who has rich expertise in the
arena of Unit Linked Plans. This expertise has been customized for India to
make sure that you get the maximum from your investments. HORIZON II is a
non participating plan.
 Increasing Death Benefit: For all in-force policies, in case of death after
completion of age 7 your nominee will receive Fund Value + Sum Assured
otherwise Fund Value is payable.

Key Features:
 Twin benefit of insurance cover and market linked returns
 Hassle-free investment management of funds from inception to maturity
 Automatic Asset Allocation of funds
 Automatic rebalancing of funds at yearly intervals, free of cost
 Higher protection, to meet your family financial needs.
 Automatic cover continuance
 Facility to top up your investment kitty
 Liquidity option after 3 years

5. LIFELONG PENSIONS (UIN No: 111N011V01)

Enjoy financial independence when you retire

Life expectancy is improving rapidly. People live longer. You cannot work throughout
your life. You will have to retire from work. In the post retirement period you have lot of
time for yourself. You would like to do things you have not done while you were working

You need to have a comprehensive plan to meet our post retirement financial needs
ensuring complete peace of mind.

To make your post retirement years truly golden, we at SBI Life introduce Lifelong
Pensions a unique Pension plan for your retirement days.

Advantages of the plan:

A maximum of Rs. 1,00,000 p.a. paid as a contribution on a pension plan is fully
deductible from the taxable income (within the max. ceiling Rs. 1 lakh)

 Minimum Guaranteed returns of 4% p.a. (compounded annually) on your

Personal Pension Account (till 31st March 2010) + Vested bonus.
 It helps you to accumulate enough savings to meet the old age needs and look for
a reliable and enduring pension payment.
 It is an extremely flexible plan:
 Choice of the contribution amount you want depending on your premium
paying capacity
 You may exercise the Top-up facility whenever by paying additional
amount to increase your retirement kitty, irrespective of contribution
payment mode.
 Convenient Contribution payment mode monthly, quarterly, half-yearly,
yearly and Single contribution is also available.
 Choice of the choosing your own retirement age.
 Postponing/ Preponing to a convenient date, the decision for receiving the
Pension Benefits.
 Contribution holiday available from year 4 onwards
 The total/balance amount (after withdrawal from PPA, if any) can be
utilized in seeking immediate annuity
 Free to chose annuity from either SBI Life or other insurance companies

 At Vesting Age you have multiple choices of Pension/ Annuity options including
Joint Life Time Annuity.

 On maturity you have a choice to withdraw up to 33% from your Personal

Pension Account in a lump sum. This withdrawal amount is tax-free as per the
current fiscal law.
 Helps you to utilize all alternatives of tax savings today and also plan for a worry
free tomorrow.
 In “Pension cum Life Cover” plan, you have the facility of Automatic Cover
Maintenance, which ensures that the cover remains in force even when you miss
the premium payments. This facility is available after the first three years of the
term.
 In “Pension cum Life Cover” plan, the life cover acceptance is based on a simple
medical questionnaire without any Medical examination
 Rebates for Annual, Semi- Annual mode of premium and on high Contribution
amount. Enjoy financial independence when you retire.

15 days Free Look Period from the date on which you receive the policy documents.
6. Sudarshan
UIN No: 111N008V01)
An Endowment Policy

Sudarshan is an Endowment Policy designed to provide savings and protection to you

and your family. You can save regularly for the future. Thus at the end of the plan, you
will receive a substantial amount of savings along with the accumulated bonuses
declared. At the same time, your family will be protected for death risk for the full Sum
Assured.

'Sudarshan' is available under two Plans.

 Fixed Sum Assured (Plan A): Fixed amount of cover for the entire duration of
the plan
 Increasing Sum Assured (Plan B): Increasing amount of cover every year for
the entire duration of the plan with level premium.
In addition to the Basic Cover, you are also entitled to opt for extra covers (riders): Term
Assurance Cover, Accidental Death and Accidental Total Permanent Disability
Cover and Critical Illness Covers by paying nominal additional premiums.

This Scheme is ideal for you:

 If you intend to provide for your children's future education, marriage expenses or
even your own retirement - in a most flexible manner.
 If you look for an insurance plan which could also act as a hedging instrument.

If you want to provide for medical expenses. If you have to unfortunately face any of the
terminal or dreaded illnesses.

7.Swadhan

Get Insured, and your premium back too!

Happiness and security for your family is what you want. However life has its
uncertainties and risks. All that you’re interested in is how best to afford a secure future
for your loved one
Have you ever wished for a low premium insurance policy that is not only provides
security to your loved ones but also returns back the premium paid.

SBI Life’s Swadhan plan is the answer to your wishes.

Advantages:

 Protection at affordable premium

 Guaranteed refund of basic premium paid on Survival at the end of the term,
depending upon the term of the policy.
 Life cover comes to you at no cost**
 Tax benefit u/s 80 C and 10 (10 D) of IT Act*
  5% rebate for Female lives
 Rebate on High Sum Assured
 Flexible benefit premium paying mode

8. Sanjeevan Supreme

Invest over a short period and reap the benefits for much longer

You and your family deserve the very best in life. However life is all about change and
with rising costs and economic instability, you may not be sure about your future
incomes. You need a product that offers you the following:

A life cover for the term of your choice.

+

At the same time does not burden you with liability to pay premiums for the entire
term.
+
Cash inflow at regular intervals

SBI Life presents Sanjeevan Supreme, one of a kind plan, especially designed for
you.
9.Scholar II

Why take chances with your child's future? As a caring parent you would always want
your child to get the very best. Is there a way to protect your children against life’s risks?
Is there a way to make tomorrow safe for them? Therefore this is the time when careful
financial planning can help you fulfill the aspirations that you have for your children’s.
We at SBI Life can help you ensure that your children’s future is secure and
prosperous.
SCHOLAR II is designed to protect your child’s future educational needs

Advantages:

 Twin benefit of saving for your child's education and securing a bright
future despite the uncertainties of life.
 Full risk cover throughout the policy term irrespective of payment of
survival benefits installments.
 Option to receive the installments in lump sum at the due date of first
installment of Survival benefit.
 Tax benefit u/s 80 C and 10 (10 D) of IT Act*
 Attractive rider options
 Attractive rebate for Female lives and High Sum Assured.
 15 days Free Look Period
10.Shield

Presenting a term plan with increasing life cover

Your family is of utmost importance to you. You want your family to have all the good
things in life and you would do everything you could to fulfill them. Life is full of
uncertainties and risk. To ensure that these uncertainties do not shatter the dreams you
have for your family.

SBI Life offers you Shield Plan.

Shield Plan is available at a very affordable cost. It provides more than adequately for
your family, should the unmentionable happen, ensuring that there will be absolutely no
comprises on dreams and ambitions for them. And more importantly, it is probably the
only policy that keeps pace with your growing commitments and responsibilities. Taking
this plan you wouldn't need to look for a fresh policy even if your liabilities increase. It is
non - participating pure term insurance plan. There is no survival benefit

Advantages:

 It offers you life insurance cover at the lowest cost for a selected term.

 It is available in 3 options to suit your requirement.

 Level Premium throughout the chosen term with increasing Sum Assured,
depending on the option chosen.
 Tax benefit u/s 80 C and 10 (10 D) of IT Act*
 Attractive rebate for Female lives.

11.Setubandhan
 Setubandhan

Attractive New product for NRIs

Introducing Setubandhan - Investment - cum - Life Insurance opportunity

A unique Life Insurance bond that helps you, the NRI living abroad, build a bridge
between you and your dear ones back in India

SBI Life Insurance also launched “Salaam Zindagi”, a social sector group insurance
policy targeted at the economically underprivileged sections of the society.
The policies for groups are:

1. SBI Life Insurance Group Gratuity Plan: SBI Life Insurance group gratuity
plan helps employers fund their statutory gratuity obligation in a scientific manner
.The plan can also be customized to structure schemes that can provide benefits
beyond the statutory obligations.
2. SBI Life Insurance Group Superannuation Plan: SBI Life Insurance offers a
flexible defined contribution superannuation scheme to provide a retirement
solution for each member of the group. Employees have the option of choosing
from various annuity options or opting for a partial commutation of the annuity at
the time of retirement.
3. SBI Life Insurance Group Term Plan: SBI Life Insurance 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. The benefit under
the policy is paid to the beneficiary nominated by the member on his/her death.
Flexible Rider Options

SBI Life Insurance offers flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer. Most of the riders come
with the traditional money back and endowment policies and the flexibility here may well
be the USP of the latest generation of insurance products.
The major advantage of the riders offered by SBI Life Insurance as well as its
competitors, is that a policyholder has the flexibility to mix and match the rider according
to requirements, and thereby avoid paying for benefits one does not need.

1. Accident and disability Benefit: If death occurs as the result of an

accident during the term of the policy, the beneficiary receives an additional
amount equal to the sum assured under the policy. If the death occurs while
traveling in an authorized mass transport vehicle, the beneficiary will be
entitled to twice the sum assured as additional benefit.
2. Accident Benefit: This rider option pays the sum assured under the
rider on death due to accident.
3. Critical Illness Benefit: This protects the insured against financial
loss in the event of 9 specified critical illness. Benefits are payable to the
insured for medical expense prior to death.
4. Income Benefit: This rider pays the 10% of the sum assured to the
nominee every year, till maturity, in the event of the death of the life
assured. It is available on Smartkid, SecurePlus and CashPlus.
5. Waiver of Premium: In case of total and permanent disability due
to an accident, the premiums are waived till maturity. This rider is available
with SecurePlus and CashPlus.

LIFE INSURANCE MARKETING

The purpose of all business is to create and retain customers. Without customers, there
can be no business. Customers do not come on their own. They have to become aware of
the availability of the goods or services on offer. Awareness is not enough. It must be
convenient to access the offer. The cost must be seen to be reasonable for the benefit
offered. An excellent product does not guarantee that sales will happen, unless people
interested in that product come to know about it and find that the effort to get it is not too
taxing. They will continue as customers when they are satisfied with what they have got.
Business, therefore, has to inform the likely customers through media that reach them,
make the goods and services available at convenient outlets and ensure that the customers
experience satisfactions while using them. Marketing is the activity that comprises of all
these. It focuses on the customer.
The marketer asks questions like what do people buy, why do they buy (what are the
needs), when and where do they buy, how do they buy, how much are they prepared to
pay, what are their preferences and priorities, what do they look for while buying, what
are their concerns, etc. The products, and the distributions are then designed in ways that
try to match these requirements. Studies over the years have developed ideas and
concepts that help marketers become more effective in their function.
Marketing concepts relevant to tangible products like.' motor cars, refrigerators and
cosmetics are not entirely applicable to the service businesses, like hotels, finance,
health care, credit cards or travel. Every service is different. The needs of their
customers are different. The ways of producing the services are different. Every service
is catering' to a different kind of need and is different in the internal dynamics of making
the service available. Those entering a disco parlour are totally different from those
entering a casualty department of a hospital. The two places cannot have the same
ambience. 'Even in insurance, life is different from general.

THE DISTRIBUTION CHANNEL

A distribution channel is the route by which the product (or offer) prepared by the
producer reaches the ultimate consumer (or buyer). The distribution channel bridges
the distance between the producer'(point of manufacture) and the consumer (point of
sale). In the case of goods, the 'product manufactured in the factory passes through
wholesalers, stockists and retailers, before it reaches the consumer. In the case of life
insurance, the agent is the primary component of the distribution channel.
Another method being attempted is the use of the extensive network of branches of
banks. The customers of both banks and life insurers, are practically from the same
segments of population. Through the same contact, the prospect can be helped to
arrange for' both bank deposit. A and life insurance There would be saving in
infrastructure costs and overheads. New insurers find this an easy way to access vast
areas. It may be possible to develop composite products having the elements of both life
insurance and banking. These trends have to develop.

SOLD, NOT BOUGHT

Life insurance is not bought by anybody. General insurance is often bought because
there is compulsion under the law (motor vehicles) or from the financers asking for
insurance as collateral security. In the case c life insurance, there is very little
compulsion. The tendency is to defer the decision. The possibility of death is either
ignored or not considered imminent. The requirements of today take priority over the
requirement of tomorrow. Even if not absolutely 'essential, till requirements of today
seem to be more compelling. Tomorrow never comes.
Superstitious beliefs and cultural or religious background often interfere with the
process. of considering usefulness of life' insurance. There is also a tendency leave
everything to. fate. There are notions about I insurance not being a good investment
(yields are low, money after 20 years is worth much less) and so on. By the time
someone realizes himself \ the need for life insurance, the chances are that he may not be
in the hest of health and the insurer may have doubts about the insurability. Life
insurance has to be had when in the hest of health. Otherwise, the insurer will refuse to
grant the insurance cover. In this complex milieu, people need to be persuaded that
there. is need to be concerned about the future and that life insurance is a necessity, not
an option. Insurance pas to be sold.
THE CUSTOMER
The service of life insurance happens at the time of claim, when people will experience
how the promises are being kept. Until then, it is a hope, a promise, the significance of
which is vague. The customer in life insurance is not only the person who bought the
policy, but also the person who is making the claim. He is the one experiencing the
service. This difference is not only in death claim cases. .Even in the case of a maturity
claim, where the claimant is same as the policyholder or life insured, the two mind sets
are different. At the start, at the buying stage, the mind set is one of anxiety and fear at
the possibility of death and welfare of the family. At the end, there could be, satisfaction
that nothing untoward had happened, but also there could be disappointment that the
moneys could have been utilized elsewhere better. .

STRENGTHENING RELATION
The agent is the main intermediary between the customer and the insurer. The customer
agent link is stronger the agent-company link (this tends to be impersonal which in turn, is
stronger than the customer-company link. Customer loyalty to the insurer depends on how
strong the agent's link with the customer is. A death claim provides a tremendous
opportunity to strengthen this link.
The agent is expected to keep in constant touch .with policyholders to become are of the
changes in situation including marriages, deaths of relatives, release of mortgages.
Anyone of them may necessitate so changes like title to policy moneys or more
insurances. The contact conveys a message that the agent cares for policyholder and the
family. An agent who is seen only the time the policy was bring bought, is likely to be
perceived as selfish" not concerned about policyholder's interests and therefore, not
believed. The agent's show of concern could also be interpreted as not genuine and
therefore, his promises not very dependable.

FUNCTION OF AN AGENT
The agent's main function is to solicit and procure life insurance business for the insurer,
which has appointed him for that purpose. At the same time, he is trusted by the
'prospect to advise him suitably keeping his circumstances and needs in mind. He is thus
in the unique role of a person trusted by both parties to the transaction. His functions
would include.
 understand the prospect's needs and persuade him to buy a plan of life insurance
that suits his interests best.
 complete the formalities (paper work, medical examination) necessary to get the
policy expeditiously.
 keep in touch to ensure that changing circumstances are reflected in the
arrangements relating to premium payments, nomination and other necessary alterations.
1. facilitate quick settlement of claims.
2. Be totally honest with both the prospect and the insurer.
The Regulations framed by the IRDA lay down a code of conduct which incorporates
some of these concepts.
 Identify himself and the insurance company of which he is an agent.

 Disclose the licence to the prospect on demand.

 Explain all available options to the prospect
 Recommend a suitable plan. taking into account the needs of the prospect
 Disclose the scales of commission, if asked for by the prospect
 Explain the nature and importance of the information required in the proposal
form
 Impress upon the prospect the need to disclose all information.

 Make all enquiries about the prospect.

 Inform the insurer about any material facts, including habits that could adversely
affect the underwriting decision.

 Convey to the prospect about the acceptance or rejection of the proposal .

 Render necessary assistance to policyholders or claimants' or beneficiaries in

complying with requirements asked for by the insure.

 Advise policyholders to effect nomination.

  Make every attempt to ensure remittance of premium by the policyholders within

the stipulated time, by giving notice orally and in writing.

 Not to induce prospects to submit wrong information.

 Not to interfere with the proposals introduced by other insurance agents.

ADVERTISEMENT
Life insurance is rarely bought as a response to advertisements. Advertisements are
effective.
 As renders to intimate change of address, pay premium, make nominations etc.
 As information on bonus declaration, special revival schemes, concessions, new
plans, etc.
 To build corporate image as financially strong, as responsible social citizen, etc.

The Regulations framed by the IRDA have made some stipulations about
advertisements by insurers as well as by intermediaries like agents. These stipulations
apply to all messages in the print and electronic media, hoardings, internet, leaflets,
business cards, etc., that urge others to buy life insurance. These stipulations, inter alia,
state that:-
 Claims made about the benefits should not be beyond the ability of the
policy to deliver.
 Benefits described should match policy provisions words or phrases
should not be used in such a way as to hide or minimize the cost of
hazards.
 Important exclusions, limitations and conditions of the contract should be
disclosed sufficiently.
 Information should not be misleading.
 Illustrations about future benefits or assumptions should not be unrealistic
or unrealizable in the light of current performance.

KEEPING CUSTOMERS HAPPY

A customer is satisfied when the product meets his need. In life insurance, this happens
at the time of the claim which is a long way off. It is important to keep him happy during
this period, to 'avoid what is called 'Cognitive Dissonance'. This arises because of doubts
about the decision to buy. In the case of life insurance, such doubt may easily arise
because others (friends and agents) will talk about better alternative plans, better
insurers, and so on. The only way to counter these possibilities is to be touch with the
prospect and reassure him at every possible opportunity that the purchase he made was
not a mistake. In other words, the agent will be effectively repeating the sales talk,
overcoming objections, till the benefits are seen through claims.
Studies show that people are happy when they are recognized and respected and not taken
for granted. Recognition happens when one's feelings, requirements etc, are understood
and not ignored. Agents can do a lot in terms of recognizing people. One way is to be
available whenever the prospect or the policyholder has a point for clarification. These
may happen during the policy term itself, when a change in job or place may raise doubts
as to the effects on the policy. Another way is to avoid denying the validity of his
thoughts. There is nothing more demeaning than to be discredited for one's, ideas. This is
I

important while handling objections during a sale. Recognition is high when the thoughts
of the other person are anticipated and attended to.
Two other factors which make customers happy are responsiveness (willingness to help)
and Ease of Access. On both counts, agents can do much more than what the insurer's
office can do. It is difficult for an office to be warm and personalized when dealing with
anybody. The agent can. Some agents do not let the policyholders go to the office at all.
They get everything done. Such agents are reinforcing the impression that the agent is
trustworthy and can be depended upon to fulfill his promises. The image of the insurer
remains high.
 PREMIUMS AND BONUSES

What is premium ?
Premium is the consideration that the policyholder has to pay in order to secure the
benefits offered by the insurance company. It can be looked upon as the price of the
insurance .It may be a one-time payment. That is not in million. Often, it has to be
paid regularly over a period. A default in premium can endanger the continuance of the
policy. If that happen the policy will be lapsed and the expected benefits will not be
Insurable.

Risk And Pure premium

Other risk premium would be adequate to pay the claims, if all the policies were term
assurance policies for one year', In the case of Endowment policies, claims have to be
paid on survival after some years. Therefore, the actual premium collected would have to
be more than the risk premium; to the extent of being able to pay the survival benefits,
whenever falling due. Here also, the mortality tables would be used to estimate the
number of person!! who may survive the terms.
The premiums collected by insurers are not utile send every year for payment of claims.
This is so for many reasons. One is that the real experience may not be exactly all
indicated by the mortality tables. Second, the portion of the premium is meant to meet
survival benefits. The balance premium remaining with the insurer will be invested and
will earn some interest. To the extent of the expected interest earnings, the premium
charged can be reduced. The premium worked out after taking into the account .the
interest, is called the net premium or pure premium.

LOADINGS
The administrative expenses of the insurer have to be met out of the premiums paid by
the policyholders. To this extent, the premium to be collected will be higher. Such
additions to the pure premium are called 'loadings'.
One of the loadings is due to administrative expenses. Loadings may be made for
other reasons as well. One of them would be for unexpected contingencies and
fluctuations. A major catastrophe like an earthquake or accident or riots or epidemic,
can raise the number of deaths to a much higher level than normal. The risk premium
based on mortality tables would be found to be Inadequate to meet catastrophic
claims. Insurers, therefore, as a matter of safety, provide for such negligence’s and
fluctuations, by 'loading' the premium suitably.
Bonus has to be given to participating policyholders. Bonus is declared out of the
surpluses determined after actuarial valuations. Surpluses, in a way, reflect the
profitability of the business or the quality of management of the business.
Nevertheless, insurers load premiums on account of the bonus. In practice the actual
bonus declared should be higher than the loading. otherwise, it would mean that the
quality of the management of the business leaves much to be desired.

LEVEL PREMIUMS

If it is expected that out of 10,000 persons at a specified age is likely to die within
one year, the mortality rate that age is said to be 0.01%. The risk premium Chargeable
for persons at that age would be Rs.O.1O per 1,000 sum assured. If a 'policy has a. term
of 20 years, I risk premium and' therefore the premium charged would vary for each of
the 20 years. Apart from being difficult to administer, the premium at later ages; towards,
the end of the policy term, would be very high. People would find this beyond their
ability to pay. That means they will be without the protection of insurance at times when
they need it most. To offset this problem, insurers spread the risk premium on a uniform
basis, throughout the term of the policy. Thus, the premium remains constant for 20
years. Such uniform premium is called Level Premium. This implies that the premium
collected in the early years of the policy would be more than necessary for the risk, and
less than necessary towards the latter part of the policy.

OFFICE PRIMIUM
The premium figure arrived at after loading the net premium or pure premium, is called
the Office premium. They are now ready for use. The premium figures printed in the
promotional literature and brochures are the office premiums.

The actual premium to be charged in any one case would require further adjustments,
depending on the practice of the insurer. For example, the administrative costs are more
if the premium is paid every quarter or month, instead of once in a year. The number of
renewal notices and receipts to be issued and consequential accounting entries would
vary according to the mode. If the mode is yearly, the probability of default in the
subsequent renewal premium, to complete the year, does not arise. The insurer can
utilize this amount for the entire year and earn more interest than if the premium were
paid in installments. Therefore, the premium rates would have to be slightly increased or
decreased depending on the preferred mode of payment.

EXTRA PRIMIUM
Extra premiums may be charged on any particular policy. This may happen because of
the grant of some benefit in additional to the basic benefits under the plan, like accident
benifits or premium waiver benefit. Riders provide adadditional supplementary benefits.
Extra premium may become chargeable because of underwriting decisions. If the risk of
the life to be insured is assessed as more than normal because of health or because of
nature of jobs or habits, underwriters may charge extra premiums. These are usually
stated as say, Rs. 2 per thousand, and will be added to the premium otherwise chargeable.

CALCULATION OF AGE

The premium to be charged will vary according to the age! of the life assured.
Premium rates for each plan 0 assurance are calculated for each age. If, after the
policy II issued, the age is found to be different from the age state, in the proposal, the
premium mentioned in the policy will be changed from inception. Either the shortfall
will be collected as arrears or the excess will be refunded Insurers prefer to admit the
age at the commencement of the policy.

Age has to be determined as on the date 01 commencement of the policy. As the

date of Commencement of the policy would not be the date of birth of the life insured,
and age has to be reckoned only in complete years, not months and days, three different
methods are followed by insurers. These are age next birthday, age fast birthday or age
nearest birthday. If a person is born on 20th August 1976, the age next birthday on 10'h
July 2002 would be 26, the age last birthday would be 25 and the age nearest birthday
would be 26.

PREMIUM CALCULATION
.
The following illustrations are based on certain assumptions with regard to practices of
insurers. These assumptions are specified at the appropriate places. Whilo making
calculations for any policy, the practices of that insurer must be conformed to.

Step:- 1 Find out tabular premium i.e. Premium quoted in published premium rates for given

age (nearer, next or last birthday as the case may be) for the relevant plan and '1st term.
This premium is per thousand sum assured. Assume the figure is Rs. 45.60.

Step2 : Deduct adjustment for large sum assured, if applicable. Assuming that the
insurer allows rebates.

BONUS

The distribution of the valuation surplus to policyholder. is done through the

declaration of 'Bonus'. Only policyholders who opt for 'Participating' or 'With profit'
policies would be entitled to bonus. Other policyholder .who have 'Non-participating'
or 'Without Profit’ policies would be paying a slightly lesser amount of premium for

the same kind of' insurance cover, because of the factor of 'bonus loading' .
Bonus is declared in various ways. The most common method is the 'simple
reversionary bonus'. The amount or bonus, is added to the S.A. If the SA under the
policy is Rs. 50000, and. the bonus declared is Rs 60 per thousand SA or 6% of S.A.,
the SA under the policy would become (' Rs. 53000 straightaway. If a similar bonus is
declared the subsequent year, the SA would become Rs. 56000.
A variety of practices are followed with regard to bonus. Some make the vesting of
bonus conditional on the policy , continuing to be in force throughout. In other words,
it be payable only on a claim arising, but not if the policy is terminated earlier for other
reasons. Sometimes, the bonus is made payable only on maturity. Sometimes, higher
bonus is declared for policies that have been in the books for a minimum number of
years. Some insurers use the bonus to be discounted and enchased
Immediately. Some insurers use the bonus to reduce the subsequent premiums.

All policies do not contribute equally to the generation of surplus . In the early years of
a policy, there would be very margin in the premium, after meeting the costs. The
Contribution would depend on how the premium adds to fund and that would differ
according to the plan, according to the age of the life insured or according to the term
of the policy. The actuary, makes an analysis of the elements that have generated the
surplus in the fund and to declare bonuses in such ways that compensate policyholders,
according to the contributions made by the different kind of policies. The attempt to be
fair, however, limitations, because the policies have necessarily to be grouped, for
practical reasons.
INTERIM BONUS
Bonus is usually declared on policies, which are in fori on the date of valuation. For
example, the bonus after 2nd valuation as on 31.3.2003 will be declared sometime I
September 2003 and will benefit holders of policies which were in force on 31.3.2003.
Policies which become claim after 31.3.2003 before the next results are announced I
September 2003, would not get the benefit of bonus although they have the right to
participate till the date claim. In order to overcome such anomalies, actuaries usually
declare 'Interim Bonuses' payable on sue policies, which become claims between two
valuations.

CLAIMS

A claim is the demand that the insurer should redeem the promise made in the contract.
The insurer has then to perform his part of the contract i.e. settle the claim, after
satisfying himself that all the conditions and requirements for settlement of claim have
been complied. In particular he should check
 Whether insured event has taken place?
 What are the obligations assumed under the contract, which are required to be
performed? These may be payment of bonus, payment of sum assured in
installments, waiver of future premiums, etc.
 Whether the policyholder has performed his part?, The policy status with regard to
premium position, age admission, outstanding loan & interest, survival benefits, if,
any, legal requirements such as under MWP Act, Foreign Exchange Regulations,
report of investigation, police reports, if any.
 Who. are the persons en'fitl0d to demand performance? Nomination / assignments/
income tax notice / prohibitory orders / official assignee's notice - are all relevant .

MATURITY CLAIMS
Under endowment type of policies, the SA is to be paid when. the term of the policy is
over. The date on which the term is complete, is the date of maturity and the settlement

of the SA on that date, is the maturity claim. The amount payable on maturity is the SA,
less any debts like loan and interest or outstanding premiums. To this bonuses, if any,
would be added, if it is a with-profit policy.

Action on maturity claims is initiated by the insurer, based on the records showing
the policies that will mature every month. The insurer normally sends advance
intimations to the insured. The insurer has to satisfy that:-
1. There are no assignments
2. The identity of the policyholder is proved.
3. The age stands admitted.
4. The premiums are all paid (this is not required for a paid-up policy)
5. The original policy is handed in
The insurer is expected to make payment on the maturity date. Post-dated cheques are
normally sent a few days in advance of the maturity date, provided the discharge form

is received duly signed.

Sometimes, the original policy is reported to be lost. Caution is to be exercised to ensure

that there is no attempt to defraud. It could have been pledged elsewhere for a loan. But
if the loss seems to be genuine, it is possible to settle the claim on the basis of an
indemnity and also, an advertisement in the newspaper, as a precaution

Under MWP Act policies" the proceeds of the policy will be paid to the trustees. If there
is no trustee, the official trustees will step in. But if the beneficiaries are major and
competent to contract, payment can be made directly to them without the' intervention of
trustees. The policyholder is not expected to sign the discharge voucher.

In case of absolute assignment, the payment will be made to the assignee. If the
assignment is conditional, reverting to the life assured on maturity, payment can be
made to the assured himself. It will be prudent however, to check that the assignee has
no outstanding claims.
Some maturity claims may be payable not on the date of maturity, but later; not as a
lump sum, but in installments. While the decision to settle may be taken on the date of
maturity, the settlement process will continue for a few years.

SURVIVAL BENEFITS PAYPMENT

A survival benefit is paid during the currency. of the policy, before the date of maturity.
The procedure will be similar to payment of maturity claims. Action will be initiated by
the insurer and post dated cheques will be sent in advance.
If the policy is reported to be lost, insurers are unlikely to settle on the basis of an
indemnity, as may done in the case of a maturity claim. The reason is that when a
maturity claim is paid, no further obligations remain, under the policy. But, the policy
does not cease to exist after the survival benefits. A duplicate policy may be asked for, on
which endorsements will be made regarding the settlement of the survival benefit.
If the life assured dies after the date when the survival benefit was due, but before it is
settled, the survival benefit will not be paid to the nominee. The death claim will be
paid to the nominee.

DATH CLAIM
The procedures in settling a death claim are more complex than. in the case of
maturity claims. This is mainly' because, the facts relating to death have to be studied
and the identities of the claimants have to be established.
The death claim action begins with an intimation being received in the insurer's office.
The intimation may be sent by the nominee, assignee, a relative of the life assured, the
employer, agent or development officer. These intimations may have very little
information, other than the policy number, the name of the life assured and the date of
death.
The office need not wait till the intimation of the claim is received. Obituary columns,
or newspaper reports in case; of accidents or air crashes, may give information and the
claim action can be initiated. However, care has to be taken to ensure that the identity
of the deceased is established. A name is not enough to establish identity.
The following will be necessary before a death claim can settle:-
1. Policy document
2. Deeds of assignments / reassignments
3. Proof of age, if age is not already admitted.
4. Certificate of death
5. Legal evidence of title, if the policy is not assigned or nominated.
6. Form of discharge executed and witnessed.
If the claim has occurred within 3 years from the commencement of policy, or from a
revival, following additional requirements may be called for in order to verify the

possibility of suppression of material facts at the time of proposal.

1. Statement from the last medical attendant giving, details of last illness and
treatment.
2. Statement from the hospital, if the deceased had been admitted to a hospital.
3. Statement from the person, who had attended last rites and had seen the dead body.
4. Statement from the employer, if the deceased was employed, showing details of leave.

If the, life assured had an unnatural death, such as 'accident, suicide or unknown causes,
police. inquest report, panchanama, chemical analyser's report, post mortem report,
coroner's report, etc. would also be looked (into. Depending on preliminary data, a
special inquiry may be ordered.

Claims arising within three years from commencement a~ looked at more carefully,
because it would be expectc1 that after the underwriter's scrutiny, the life assured
should have had a longer life span than three years. The point to check would be
whether there had been an; suppression of material facts. If the insurer is satisfied the
there has been suppression, the claim will be repudiated that is, it will not be paid.

When a policy is revived on the basis of evidence of go health, an underwriter makes a

decision. An early deal (within three years) after that raises the same issues and will be
looked into more carefully. This need not be done if the revival was done without
reference to state of health.
ACCIDENTIAL AND DISABILITY BENEFITS
These benefits are conditional on conclusive evidence that all the eligibility condition are
satisfied and that the exclusion does not apply .the condition are that apply:-
 The accident must be caused by outword, violent means, not inflicted.
 The death must be a result of injuries caused by that accident.
 The death must occur within 120 days or such other period as may be
specified.
The exclusion may be:-
 Intentional self injury, attempted suciede, insanity, immorality, intoxication.
 Accident while engaged in civil aviation or aeronautics, other than as a
passenger.
 Injuries resulting from riots, civil commotion etc.

RESEARCH METHODLOGY

In this section of my project, the requirement is to describe the sources of collecting

primary and secondary data. For collecting primary data, method adopted was focus

group method

Source of primary data

Natural market

 Relative

 Friends

 Neighbour

Survey
Seminars (Focus Group)

Sources of secondary data

 Yellow pages

 Database of different company

 Telecalling Leads

 References data

Research – research in common refers to a search for knowledge . once can also

define research as scientific and systematic search pertinent on a specific topic.

According to Clifford woody research comprises defining and redefining problem,

formulating hypothesis or suggested solution; collecting , organizing and

evaluating data; making deductions and reaching conclusions; and at last carefully

testing the conclusions to determine whether they fit the formulating hypothesis.

Types of research ;

Descriptive vs. analytical

Applied vs. fundamental

Quantitative vs. qualitative

Conceptual vs. empirical

 My report used descriptive and analytical research :

Descriptive research includes surveys and fact finding enquiries of different kinds.

The major purpose of descriptive research is description of the state of affairs as it

exists at present. In analytical research, on the other hand, the researcher has to used

facts or information already available, and analyze these to make a critical

evaluation of the material.

SAMPALE SIZE:- 100

SAMPALE UNIT:- 100
RESEARCH PROCEDURE :- QUENTIONNAIRE

ANALYSIS & INTERPRATATION

 How many people interested in SBI life insurance? (According to Gender)

Man 80
Woman 20
  How many people interested in SBI life insurance?

Interested 67
Not interested 33

 How many person take policy?

Take policy 24%

Not take policy 76%

76%

80%
70%
60%
50%
24%
40% Series1
30%
20%
10%
0%
Take policy Not take
policy

 People take deferent polices?

Unit Plus II Pension 44%

Unit Plus -II Plans 12%
Horizon- II 44%

Where deposits of the customers ?

o FD 32% Securities 35%
o Mutual Fund 13% Insurance 20%

 What other benefit would you seek for if you don’t want to with other company ?
 1. GROWTH 2. COMPANY BRAND
3. WORKING ENVIRONMENT 4. JOB PROFILE

LIMITATION
 As the movement throughout the city is not possible due to certain constraints
so the movement was quite restricted.
 People are not ready to go for training. As the training period is of 17 days and
it involves full day, so it becomes difficult for them to leave their offices and or
shops for such a long time.
 The compulsion of selling 12 policies in a year also restrict them for becoming
advisors. If they do not fulfill there target, their license is cancelled after one
year.
 Lack of trust on any company in private sector.
 Lack of knowledge about the product of the company and the total blind faith
on LIC.
 Some time, fresh graduates want to become advisors but the company denies
making them an advisor as they are fickle-minded and also unreliable.
 There is a problem in targeting charted accountant. ICAI, does not allowed C.A
to become advisor.
  Some time those people want to become advisor but who are not localite so they
are very susceptible about their performance and whether they will be ale to
generate business for the company or not, so they avoid to take up this
challenge.
 It was a great problem to get appointments from the people because of busy
schedule of them.
 Some people do comparatively analysis with LIC.
 Some people consider fees 1000rs as a constraint.
 Non availability of Part-time training.
 One person cane not take two company agencies.
 Time constraints are the biggest problem in taking up the study.

ADVANTAGES

 Life Insurance offers Personal insurance and related services in order to enable us
plan our Life for contingencies and unforeseen events.
 SBI Life Insurance operates on the basic premise that Life is uncertain and the
best way to tackle this uncertainty is to be prepared emotionally as well as
monetarily.
 SBI Life Insurance is a product of the collaboration of the State Bank of India and
the French Insurance company, the Cardiff SA.
 SBI Life Insurance offers Insurance Benefits and pension services based on the
case and the portfolio of the clients.
 For instance, The State Bank of India offers Insurance Policies that are designed
in accordance to our needs and liabilities.
 The advantage of availing SBI Insurance Policies is that we get the entire
financial guidance package offered by SBI India in regards to its various
 programs, like the SBI Mutual Funds, Medical Insurance, Personal Banking,
Corporate Banking, etc.
 The experts with SBI Life Insurance offer investment Life Insurance but what
distinguishes The State Bank of India from other Insurance Companies is the
availability of Mortgage Life Insurance policies in which we can avail SBI
Housing Loans/Home Loans and SBI Life Insurance and then consolidate the
Insurance premium and the monthly installments.
 The main hallmark of SBI Life Insurance is to offer Insurances Policies and Long-
Term Care Insurance at affordable prices and without much hassle.

RECOMMEDATIONS / SUGGESTION

In order to survive in this era of cutthroat competition, it is very important for an

organization to give the best to its customers and the most reasonable price.

After going through the study on my project, I would like to come up with following

recommendations to the customers:

As of now insurance has limited awareness and only sells because of the Tax benefits

available to the customer not for the insurance. Thus, the companies should widen their

horizons at a very brisk pace and should aware the customers about the benefits of

insurance.

 All the company should come out of a Unit Linked product that should aid

every section of the society.

 The advisors should be made aware and educated so that they can extend

their services not only in terms of collection of premium cheques from the

policy holders but also to educate them about the insurance and the latest

Non Traditional products.

 The company has invested 85% of the premium received with

Government. In order to give eye-catching returns to the public, it should

diversify its portfolio and invest in places where the returns are high

CONCLUSION
 SBI LIFE INSURANCE COMPANY has great goodwill in the
market. There are 13 big companies in Indian market and ICICI is
the no. one in the private insurance companies.
 There is lot of scope of life insurance in India only 2.5% people are
secure with life insurance so that the insurance sector is its
booming stage.
 Good profile insurance advisor could do better job. If SBI Life
Insurance mention the level of advisor then they may give great
sale to the company.
 SBI has tuff competition with LIC…as well as ICICI, TATA AIG,
BAJAJ ALLIANCE, BIRLA SULIFE, ING VYSVA, OM KOTAK
MAHINDRA, HDFC INSURANCE.
 If the company starts to concentrate on village segment market.
Then company can get great business.
  I got the good profile people near by bank and share market. When
I concentrated on the 20-25 year age group people I found good
result.
 In this age group people made interest to purchase the children
plan and pension money back plan.
 I found that in insurance sector a person should have great
communication skill and convenience skill.
 People take interest in the business opportunity of SBI because
there are lots of chances to increases earnings and make high place
in the company.
 People take lot of interest in the pinnacle program and also life of
the professional environment of the company.

BIBLIOGRAPHY
WEB SITES:
 www.sbiprulife.com
 www.sbi.co.in
 www.irdaindia.org
REFERENCE:
 Kothari C.R.: Research Methodology, New age international (p) Ltd,
publisher, New Delhi, 2005
 Gupta Dr. C. B.: Human resource management, Sultan chand & Sons, New
Delhi, 2003

MAGAZINES:--
 Insurance Plus
 Business India
  Economic Times
 Material Provided by the company
 Survey

Search Engines:
 www.google.com
 www.yahoo.com

Project guide:
Abhishek Dube (Agency Manager)

ANNEXURE
 QUESTIONNAIRE

Name:

Occupation:

 Annual income:
(A) Upto 70000 (B) 70000-100000
(C) 100000-150000 (D) 150000 and above

 Where you deposit your saving?

o FD
o Securities
o Mutual Fund
o Insurance
 Are you know about invest with Insurance plan?
o Yes
o No

 Which insurance company you know ?

o LIC
o ICICI
o SBI
o HDFC
 How did you come to now about this company ?
o PRINT MEDIA
o ELECTRONIC MEDIA
o REFERENCES
o PERSONAL APPROACH

 Which type of policies you prefer?

o CHILD PLAN
o UNIT PLAN
o RETIREMENT PLAN
o HORIZAN PLAN

 How did you think about company products ?

o GOOD
o VERY GOOD
o FAIR
 o EXELLENT

 What other benefit would you seek for if you don’t want to with other company ?
o GROWTH
o COMPANY BRAND
o WORKING ENVIORMENT
o JOB PROFILE

 Why you want in policy ?

o PROTECTION
o TAX RATE
o INVESTMENT
o All