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LOVELY PROFESSIONAL UNIVERSITY DEPARTMENT OF MANAGEMENT Report on Summer Training

Basics of insurance and people awareness towards Birla sun life insurance.
.. Submitted to Lovely Professional University In partial fulfillment of the Requirements for the award of Degree of Master of Business Administration Submitted by: Ramanpreet Kaur University Roll No. 11002694A31 DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY JALANDHAR NEW DELHI GT ROAD PHAGWARA PUNJAB

CERTIFICATE OF ORIGIN

This is to certify that Ms Ramanpreet kaur, a student of Post Graduate Degree as MBA, of Lovely professional university has worked in Birla Sun Life insurance co, under the able guidance and supervision of Mr. Hardeep singh, Manager of agency of Birla Sun Life Insurance. The period for which she was on training was for six weeks, starting from 25/06/2011 to 08/08/2011. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in International Business. To the best of our knowledge, no part of this report has been reproduced from any other report and the contents are based on original research.

Signature (Faculty Guide)

Signature (Student)

ACKNOWLEDGEMENT

I would like to extend my sincere thanks to Birla Sun Life Insurance Company for providing me an immense opportunity for undertaking research in their esteemed organization and providing me with continuous support and guidance which was vital for the successful completion of the project. I would like to take this opportunity to express my gratitude to my project guide, Mr. Tribhuwan sharma, Branch development manager, for a significant contribution made by him towards my learning, by way of making himself available, providing leads in course of the project and most importantly for the tremendous source of encouragement and inspiration he has bestowed on me throughout the project. I express my sincere gratitude to Mr. Alok kumar jha, Branch Manager of Birla Sun Life Insurance, Nawanshahr, and also our training officer Mr. Hardeep singh for their timely guidance and in providing the required facilities and information for completing the project. I also want to take this opportunity to express my sincere gratitude to my faculty member, Mrs. Ashima kalia, who guide and encouraged me throughout the project.

Yours sincerely, Ramanpreet Kaur

Table of contents

SR. NO.

PARTICULARS EXECUTIVE SUMMARY CHAPTER I :LIFE INSURANCE

1.1 1.2 1.3 1.4 1.5 1.6 1.7 2.1 2.2 2.3 2.4 3.1 3.2 3.3 3.4 4.1 4.2 4.3 5.1

INTRODUCTION POTENTIAL OF LIFE INSURANCE BUSINESS IN INDIA LIFE INSURANCE OBJECTIVES ADVANTAGES FUNCTIONS CONTRACT FOR INSURANCE CHAPTER-II: COMPANY PROFILE IRDA- REGULATORY PRIVATE PLAYERS BIRLA SUN LIFE INSURANCE SWOT ANALYSIS OF COMPANY CHAPTER-III :UNDERWRITING AND RISK MGT UNDERWRITING CLASSIFICATION OF RISK RISK MANAGEMENT INSURANCE RISK MANAGEMENT CHAPTER-IV: BRANCH OPERATIONS UNDERWRITING GUIDELINES POLICY ISSUING PROCEDURE CLAIM SETTLEMENT PROCESS CHAPTER-V : HOW TO SELL INSURANCE POLICY SALES PROCESS CHAPTER-VI : PEOPLE AWARENESS TOWARDS BSLI CHAPTER-VII : FINDINGS AND SUGGESTIONS Findings of the Study Suggestions

7.1 7.2

EXECUTIVE SUMMARY
Life insurance is a contract for payment of a sum of money to the person assured on the happening of the event insured against. Life insurance is universally acknowledged to be an institution, which eliminates 'risks', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of the death or of total permanent disability of the breadwinner. By and large, life insurance is civilization's partial solution to financial uncertainties caused by untimely death. I got an opportunity to complete my summer training in BIRLA SUNLIFE INSURANCE Company to learn about the working of insurance company. I personally chose this industry and this particular company because I want to work in this sector and Birla Sun Life insurance co is a reputed insurance company. I have been assigned a project related to the survey regarding the customer satisfaction level towards the company (BIRLA SUNLIFE INSURANCE ). In addition to this I want to get knowledge about the basics of insurance, working of insurance, operations at branch level, risk management process, etc. I have completed my project I have presented all the data and its analysis in this project. In my survey I made an attempt to determine the presence, strength, and strategies adopted by various life insurance companies. The objectives of this study are as following:

To get knowledge about the basics of insurance. To know that how insurance works and different benefits and functions of life insurance. To know about the underwriting process and risk management process. To know the operations at branch level or process of selling the insurance policy. to know the customer satisfaction level and their perception regarding BIRLA SUNLIFE INSURANCE. I have to study the rural peoples awareness regarding the birla sun life Insurance. .

Scope of Research
Primary data: A questionnaire was drafted. The questionnaire contains 12 questions which helps us to analyze the public who aware of the co or perception of public towards private insurance company i.e, birla sun life insurance company. It will also clearly show the customers perception towards insurance compared with the other investment options and financial instruments, and as to how we can make it better.

Secondary data: The secondary data was collected through the web sites of different organizations, news papers and weekly journals of the Birla sun life company. The secondary data is collected
through the Websites related to insurance sectors, Journals & Books on Research Methodology.

I conducted this study to know the various benefits given by life insurance companies to the customers, to determine the policy, which is considered to be most popular by the rural customers, to know the scope of as an investment opportunity and to know the priority of people while selecting different Saving Schemes, to calculate the rural customer satisfaction level regarding the policies and toward companies, to calculate the percentage of the population insured and those interested in getting insured.

During my study I faced some limitations and I mentioned it in the project. The main limitations of my study is sample size is limited to 100 respondents, so complete knowledge about subject is not possible. The study is to be limited to the villages of Nawanshahr District only because of limited time and financial resources. So results of the study may not be generalized for India as a whole. Human weaknesses such as inattentiveness cannot be ignored. People generally considered me as an insurance agent and tried to avoid discussions with me. Another factor could be the existence of biasness in the respondents mind. Many times, these biasness have greater bearing on the responses put forward by respondents. I presented all the data based on questionnaire filled up by me from the peoples of rural area and I analyzed the data and presented it in the project. I visited ALIPUR village, SOFI PIND,KASAM PUR, NAWANSHAHR of nawanshahr region and filled up the questionnaire from the general public to know the awareness level towards the BIRLA SUNLIFE INSURANCE Company. This study is very useful for the company to know the satisfaction and awareness level of the customers and the peoples of rural area. The main aim behind the project is to provide the data to the company so that they can focus on these areas to expand their business. As far as the scope or research of the study is concerned, An exploratory research was carried out through questionnaire for which a stratified sampling technique was adopted and a sample size of 100 individuals was taken. A questionnaire was drafted to analyze the dependence of type of insurance policy required, on the life cycle stage of the individual. It will also clearly show the customers perception towards insurance compared with the other investment options and financial instruments, and as to how we can make it better. Both qualitative and quantitative techniques were applied but this study heavily relied on qualitative technique and it was proven that the life cycle stage of an individual is an important determinant for deciding the type insurance policy required by the individual.

Conclusion of the study is that till today a large portion of population is unaware of various insurance plans, these include uneducated and less educated people. Therefore, the Private sector insurance companies should focus on improving awareness and the increase the understanding about insurance plans thus increasing their scope of sale. I would like to suggest that BIRLA SUNLIFE INSURANCE Company should try to create awareness among rural people about their company. BIRLA SUNLIFE INSURANCE should cover rural areas, as they are also the segment of population not aware of the advantages of policies. BIRLA SUNLIFE INSURANCE should do efforts to promote the brand name and create awareness through channels such as advertisements more.Company should focus on introducing the plans for lower income group or middle class people.

CHAPTER : 1 INTRODUCTION TO LIFE INSURANCE

INTRODUCTION No one likes to think about the bad things that can happen to them, but for many people, unexpected shocks are a daily threat. Low-income families are particularly vulnerable to potential losses from a host of situations and may be ill-prepared to cope financially with their negative impact. Small and frequent shocks, such as childrens illnesses, may only have short-term impact, while more significant events, such as the destruction wrought by natural disasters or the death of an income earner, can bring financial ruin. Such crises wipe out the hard won gains painstakingly accumulated over time. As families go deeper into debt and/or sell assets to pay their unexpected expenses, their climb out of poverty can easily be thwarted. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent to the countrys GDP. In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more

efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many sea changes .The competition LIC started facing from these companies were threatening to the existence of LIC. Since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.

POTENTIAL OF LIFE INSURANCE BUSINESS IN INDIA


Indias life insurance market has grown rapidly over the past six years, with new business premiums growing at over 40% per year. The premium income of Indias life insurance market is set to double by 2012 on better penetration and higher incomes. Insurance penetration in India is currently about 4% of its GDP, much lower than the developed market level of 6- 9%. In several segments of the population, the penetration is lower than potential. For example, in urban areas, the penetration of life insurance in the mass market is about 65%, and its considerably less in the low-income unbanked segment. In rural areas, life insurance penetration in the banked segment is estimated to be about 40%, while it is marginal at best in the unbanked segment. The total premium could go up to $80-100 billion by 2012 from the present $40 billion as higher per capita income increases per capita insurance intensity. The average household premium will rise to Rs 3,000-4,100 from the current Rs 1,300 as will penetration by the existing and new players. Indias ratio of life insurance premium to its GDP is around 4 per cent against 69 per cent in the developed world. It could rise to 5.1-6.2 by 2012 in tandem with the countrys demographic profile. India has 17 life insurers. Life Insurance Corp. of India dominates the industry with over 70 percent market share, though private players have

been growing aggressively. Considering the worlds largest population and an annual growth rate of nearly 7 per cent, India offers great opportunities for insurers. US based online insurance company ebix.com plans to enter the Indian market following deregulation of its insurance sector. Online insurer, ebix.coms expansion into India is a major step for the company to become a global supplier of internet-based insurance tools for consumers and insurance professionals. In a diverse country such as India it is imperative that a universal insurance infrastructure be created to maximize efficiency in the insurance industry. Online insurer ebix.com can offers the Indian market a businessto-consumer internet portal where consumers have more choice while purchasing insurance and an internet-based agency management system that will help agents work more efficiently with multiple carriers. Foreign holding in Indian insurance companies is limited to 26 per cent. The government wants to increase the cap to 49 percent, but its communist allies oppose such a move. The market is moving beyond single-premium policies and unit linked insurance products which are easier to sell. The agency model is the dominant sales channel accounting for more than 85 per cent of fresh premiums but overall inactivity and attrition is much higher at 50-55 per cent than the global average of 25 per cent. Opportunities include health insurance and pensions, the report said, adding only 1.5-2 percent of total healthcare expenditure in India was currently covered by insurance. A life insurance policy covers ones personal self. Unlike with general insurance, it is not like insuring a vehicle. Having said that, if we consider that Indias population is over one billion and growing, we get a picture of the true potential of the life insurance sector in India. LIC has been in business for 50 years now and has not covered the entire population base yet. About 250 to 300 million Indians are still insurable. LIC has issued about 120 million policies till now, with new premium income of US$ 1 billion. Its assets have been estimated at $37 billion and in the last quarter it reported a 60 per cent growth in new business. LICs business is growing at the rate of 20 per cent every year. That is the kind of potential one is talking about in life insurance in India. It would not be wrong to say that a lot of the advantage of advertising by new private sector insurance companies has by default gone to LIC. While they have created a lot of awareness through private insurers advertisements, LIC has benefited. Why? Because LIC has a

much wider branch network, and buyers are surer of LIC because it has been in existence for long; they are more comfortable about its safety.

LIFE INSURANCE
Life insurance is a contract for payment of a sum of money to the person assured (or failing him/her, to the person entitled to receive the same) on the happening of the event insured against. Usually the contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or an unfortunate death, if it occurs earlier. Among other things, the contract also provides for the payment of premium periodically to the Corporation by the assured. Life insurance is universally acknowledged to be an institution, which eliminates 'risks', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of the death or of total permanent disability of the breadwinner. By and large, life insurance is civilization's partial solution to financial uncertainties caused by untimely death.

OBJECTIVES OF INSURANCE
There are many reasons for investing in life insurance policies, such as: 1.) Protection for the Family The most important objective of life insurance is to provide financial protection for the family in case of an unexpected and premature death of its breadwinner. The purpose is to protect the dependents against the loss of earning power of the insured through death or disability. Those who have insured their lives for an adequate sum can live in peace and comfort, free of the gnawing worry of what would happen to their families in the event of their sudden and premature death. Life insurance has long been recognized as a necessary and essential element in a familys total financial program. 2.) Regular Savings

Saving is not a physical need, unlike hunger or sleep. Many of us may not save unless there is compulsion to do so. For such people, life insurance is a compulsory, regular savings scheme, especially the monthly salary savings schemes. Even if you do not subscribe to the salary savings scheme, you can issue standing instructions to your bankers to pay the premium regularly without reference to you. The element of savings in a life insurance contract should be understood in a proper perspective. Typically, life insurance is made available on the basis of equated periodical payments. In the initial years, you tend to pay more compared to the risk factor. Strictly, speaking, the 'savings' aspect in a life insurance policy should not be compared with other pure savings media.

3.) Tax Benefits There is a tax rebate under Section 88 on life insurance premium. Many investors, especially those in higher tax brackets, used to buy life insurance mainly to take advantage of these tax benefits. Additional tax benefits are available under Section 80DD and Section 80CCC applicable to specific schemes. Hence, attractiveness from the tax angle has come down. ADVANTAGES OF LIFE ANSURANCE 1. Protection against risk of untimely death. 2. Protection during old age 3. Forced savings 4. Educational requirements and charity 5. Nomination and assignment 6. Marketability and suitability for borrowing. 7. Loans from the Insurance Company 8. Tax benefits 9. Protection to wife and children

IMPORTANCE OF INSURANCE
A) Beneficial to an individual Insurance provides security and safety. In case of life insurance payment is made when death occurs or the term of insurance is expired. Insurance affords peace of mind. A sense of security removes all tensions and fears. It stimulate to more and better work. By means of insurance much of the uncertainty that centers round the modern life may be eliminated. Insurance eliminates dependency. The insurance provides adequate amount to the dependents at the early death of the property owner to pay off the unpaid loan. Insurance eliminated dependency. In the event of death of the bread winner of the family or destruction of property, the family suffers a lot. The insurance assists the family and provides adequate amount at the time of need. Life Insurance encourages saving. Systematic saving is possible because Regular premium are required to be compulsorily paid. Unlike bank deposits the deposited insurance premiums can not be withdrawn. Life Insurance is the best media of saving. Life Insurance provides profitable investment. The elements of Investment i.e. regular saving capital formation and return of the capital are observed in life

insurance. In India in insurance policies carry the exemption from the income tax and estate duty. Life Insurance fulfills the needs of a person. The need of a person may be divided into (i) Family needs, (ii) old age needs, (iii) re-adjustment needs and (iv) special needs including needs for education, marriage settlement of children etc. (v) clean up funds for ritual ceremonies, payment of taxes etc. B) Beneficial to Business Insurance has been useful of the business society in more than one way. It reduces uncertainty of business losses. As a huge number of properties are employed in commerce and industry equally great risks are involved in day to day functioning. The owner of the business might foresee contingencies that would bring great loss. By purchasing a policy he can be sured of his earnings. Business efficiency is increased with insurance. A businessman gets free from unnecessary botherations and can devote more care and energy to maximize his profits. Keyman indemnification. Persons having expertise, experience, ability to control the business are most important for the employers. Death of such persons proves a more serious loss then that by fire. The compensation to the dependents of such employers requires adequate provision which can be met by purchasing life policies. Addition in credit. The business can obtained loan by pledging the policy as collateral security for the loan. As the assets are insured therefore, in the event of loss the compensation can be paid. Business Continuation. The partnership business may be discontinued at the death of a partner. The insurance policy provide adequate funds at the time of death therefore, the legal representative can be paid easily.

Employee Welfare. Provision for welfare for employees can be made by the life insurance in case of accident or sickness benefit and pensions.

C) Beneficial to Society Wealth of society is protected. Insurance provides loss of human wealth. Loss of damage of property can also be indemnified by the insurance company. Economic growth of the company. As insurance provides protection against loss of property thus, if any such damage arise the assets can be replaced without loss of production thus, Economic development of the country is not effected. Accelerate the production growth. Adequate capital from Insurance Company can accelerate production circle in the country. Economic growth of the country is not only assured but the process of growth is accelerated which is more essential in a country like India where the population is increasing very fast. Reduction in inflation. The insurance company in the form of premium gets lot of money supply from the public which insurance corporation put into production thus the money which would have come into circulation might have gone for productive purposes.

FUNCTIONS OF INSURANCE
PRIMARY FUNCTION (i) Certainty of Compensation of Loss: Insurance provides certainty of payment at the uncertainty of loss. The element of uncertainty is reduced by better planning and administration. The insurer charges premium for providing certainty. Life is always full of risks. Life without risks and uncertainties is unthinkable. Man has always encountered risks of various types since the inception of civilization. Minor risks can be ignored but the major risks cannot be ignored and their avoidance is desirable. One of the ways or techniques of meeting the risks loss

prevention and insurance. Insurance removes all uncertainties and the assured is given certainty of payment of loss. The insurer charges premium for providing the said certainty. (ii) Insurance provides protection: The risk will occur or not, when will occur, how much loss will be there? There are uncertainties of happenings of time and amount of loss. The main function of the insurance is to provide protection against the probable chances of loss. The insurance cannot check the happening of risk. The insurer gives certainty of payment of loss to the assured by charging premium.

(iii) Risk sharing: Risk is uncertain and therefore, the arising from the risk is also uncertain. All business concerns face the problem of risk and if the concern is big enough the handling of risk become a specialized function. Risk and insurance are interwoven with each other. Insurance, as a device is the outcome of the existence of various risks in our day to day life. It does not eliminate risks but it reduces the financial loss caused by risks. Insurance speeds the whole loss over the large number of persons who are exposed by a particular risk. SECONDARY FUNCTION (i) Prevention of loss: Prevention is always better than cure. Prevention of loss is by far the best solution to the problem of risk. It is the most effective and cheapest method to avoid the unfortunate consequences. By having the fire resistant construction, observing safety instructions, installation of automatic sparker system etc. fore can be prevented. Similarly better roads, better lights, and better traffic regulations automobile accidents can be prolonged. But some times prevention of protection is not always possible and effective. When

prevention fails other methods must be adopted. The insurance joins hands with those institutions which are actively engaged in preventing the losses of the society. Reduction in loss causes lesser payment to the assured and so more saving is possible which will assist in reducing the premium. Lesser premium invites more business and more business in its turn results in lesser share to the assured. Reduced premiums stimulate more business and more and better protection to the insured (ii) It provides capital:It provides capital to the society. For planned development of a country there is great need for huge amount of capital. The accumulated funds are invested in providing proper infrastructure and in investing in productive channel. Now a day, the insurance companies are rendering positive help in the development of trade, commerce, and industries of a country through different scheme of investment. A countrys natural resources can be exploited with long term and huge amount of investment by the insurance companies. (iii) Adequate Financial cover: The need of insurance is largely felt to give a cover to the rural areas and to the socially and economically backward classes with a view to reach all insurable person in the country and provide them adequate financial cover against death at a reasonable cost. (iv) Mobilization of Savings: In insurance the savings of masses is collected by insurance corporations.

CONTRACT FOR INSURANCE


Life Insurance can be defined as a contract, where for stipulated considerations called the premium the insurer agrees to pay the insured or a beneficiary, a defined amount upon the occurrence of death or some other specified event.

A contract of insurance is a contract of utmost good faith, technically known as Ubermiea fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance.

The Proposer, who is one of the parties of the contract, is presumed to have means of knowledge, which are not accessible to the Company, who is the other party to contract. Therefore, the Proposer is bound to tell the insurer everything, which might affect the judgments of the insurer, no matter how unimportant it may seem to him. In all the contracts of insurance, the Proposer is bound to make full disclosure of all material facts and not merely those, which he thinks material.

Misrepresentation, non-disclosure, or fraud in any document leading to the acceptance of the risk automatically discharges the Company from all liability under the contract the client loses out.

Insurable Interest An Insurable interest is one of the most basic of all requirements in insurance & it must be met for an insurance contract to be valid. The Principle of Indemnity cannot be applied & does not apply to a Life Insurance contract because of the difficulty of putting a monetary value on the human life. However, here also Insurable Interest must be present to distinguish the contract from a mere gamble. The Insurable Interest must: Be definite Be capable of valuation Be legally valid & subsisting Involve a loss of a legal right

CHAPTER: 2 COMPANY PROFILE

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY.


Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products which are expected to be

introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 151ife insurance and 15 non-life insurance companies have been registered. ENTRY OF PRIVATE PLAYERS The introduction of private players in the industry has added to the colors in the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LlC. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in this sector. The new players have improved the service quality of the insurance. The following companies are present in the Life Insurance Industry in India. Bajaj Allianz Life Insurance Company Limited. Birla Sun Life Insurance Co. Ltd HDFC Standard Life Insurance Co. Ltd ICICI Prudential Life Insurance Co. Ltd ING Vysya Life Insurance Company Pvt. Ltd. Life Insurance Corporation. of India Max New York Life Insurance Co. Ltd Met Life India Insurance Company Pvt. Ltd. Kotak Mahindra Old Mutual Life Insurance Limited SBI Life Insurance Co. Ltd Tata AIG Life Insurance Company Limited Reliance Life Insurance Company Limited. Aviva Life Insurance Co. India Pvt. Ltd. Sahara India Life Insurance Co, Ltd. Shriram Life Insurance Co, Ltd. Bharti AXA Life Insurance Company Ltd.

BIRLA SUN LIFE INSURANCE


Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group, a well known and trusted name globally amongst Indian conglomerates and Sun Life Financial Inc, leading international financial services organization from Canada. The local knowledge of the Aditya Birla Group combined with the domain expertise of Sun Life Financial Inc., offers a formidable protection for its customers' future. With an experience of over 10 years, BSLI has contributed significantly to the growth and development of the life insurance industry in India and currently ranks amongst the top 6 private life insurance companies in the country. Known for its innovation and creating industry benchmarks, BSLI has several firsts to its credit. It was the first Indian Insurance Company to introduce "Free Look Period" and the same was made mandatory by IRDA for all other life insurance companies. Additionally, BSLI pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. To establish credibility and further transparency, BSLI also enjoys the prestige to be the originator of practice to disclose portfolio on monthly basis. These category development initiatives have helped BSLI be closer to its policy holders' expectations, which gets further accentuated by the complete bouquet of insurance products (viz. pure term plan, life stage products, health plan and retirement plan) that the company offers. About Aditya Birla Group A US $30 billion corporation, the Aditya Birla Group is in the league of Fortune 500 worldwide. It is anchored by an extraordinary force of 130,000 employees, belonging to 40 different nationalities. The group operates in 27 countries across six continents truly India's first multinational corporation.

Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG), has a strong presence across various financial services verticals that include life insurance, fund management, distribution & wealth management, security based lending, insurance broking, private equity and retail broking The seven companies representing Aditya Birla Financial Services Group are Birla Sun Life Insurance Company Ltd., Birla Sun Life Asset Management Company Ltd., Aditya Birla Finance Ltd., Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., Aditya Birla Money Mart Ltd, and Aditya Birla Insurance Brokers Ltd. In FY 200910, About Sun Life Financial Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2011, the Sun Life Financial group of companies had total assets under management of $469 billion.

SWOT ANALYSIS OF BIRLA SUN LIFE INSURANCE


Strength: Financial rating of companies Flexibility of plans Highly co-operative & skilled staff. Sales oriented organization. Aggressiveness of sales force in selling products. The company has expertise in managing big business.

Effective and wider distribution network. Product designed for each age group & every area of personal. Birla Sunlife provide unique training program for insurance advisor called product training The company enjoys a very high brand loyalty & recall value among its customer. The company has a presence in all metros as well as in most of the major cities in country. Weakness: Less coverage in rural areas. Less staff Lack in making follow up. Lack of corporate agent. Lack of customer services. Lack of promotional activities. Opportunity: There is continuous growth in insurance sector and rural market is still untapped. People have started Turing towards private insurance sector as they know that security and growth of money is better then another insurance company. Government has also started investing in private insurance sector. Market is fully to capture because the branch has recently set up its business so there is growth chances in the Kota market. Threats: Competition in insurance sector is increase sing with the entry of private giants like HDFC Standard life , Tata - Aig , Bajaj Allanze, Sahara, Gic, LIC etc.

Continuous follow up of the client and customers by the other insurance companies. As LIC has strong market position so it is little bit difficult to capture the market. Customer is still find risky to place its money in private insurance sector.

CHAPTER :3

UNDERWRITING & RISK MGT

UNDERWRITING:
To get an insurance cover, one has to send an application, which is called proposal form. After receipt of proposal form, risk cover is not granted automatically, but decision by the underwriter is taken on it. Whenever any proposal is received, its risk is to be assessed & after verifying the level of risk, new entrants case is admitted for selection & this assessing of risk is called underwriting. Any wrong assesment of risk of new proposal can mislead the company for not charging the appropriate premium. The lower charging of premium will ultimately effect the solvency of funds of the insurer. The cost of additional risk, not recovered from the proposer would have to be borne by the rest of the policyholder. If an underwriter finds that the individual proposed to be insured has no adverse features, the risk is considered as normal or standard or first class life. Oterwise

the proposal is accepted by the uunderwriter on different terms. In some cases the insurer may also refuse to entertain the case. Birla Sun Life Insurance (BSLI) is accustomed to firsts. In the India market, they have been the first to start multi-channel distribution, including Banc assurance and Group distribution. They were the first to offer a free trial period on all products. They were the first to issue a policy across the counter within 30 minutes of application receipt and the first to sell policies on the web. Now, they are the first to grow their underwriting program 100% without adding underwriters. Early in 2005, BSLI made the strategic decision to grow their market share through various new distribution methods. They were confident in their ability to design products that fit their market and confident in their marketing and distribution of those products. Having watched industry trends, they felt poised for healthy growth. The question that lingered in their minds was in their ability to handle the growing influx of applications. Would the benefits of their efforts result in increased time to issue applications? Would it stress their underwriting department to the breaking point? BSLI knew that it was time to implement an automated underwriting system that would meet their current and future needs, either by building it themselves or by partnering with an organization on the outside. BSLI objectives were simple: Improve underwriting efficiency to handle increased volumes of business with limited increase in headcount Standardize and enhance the quality of underwriting decisions Allow underwriters to focus on complex cases Decrease the time it takes to launch new products by improving rules development and administration BSLI evaluated potential vendors based on software functionality, technology, vendor credibility, post-sales service and support, implementation timeframe and total cost. After their thorough review, BSLI chose RGA Technology Partners (RTP) to help them integrate AURA into their underwriting process. AURA was built with the flexibility to work with any existing administration system, so compatibility wasnt an issue. Birla Sun Life Insurance Gears Up for Growth Next-Generation Underwriting AURA helps BSLI prepare for fully-underwritten new business. The scope of implementation

included all of BSLIs existing life products and health products including all types of riders. AURA needed to handle multiple application types, complete non-medical underwriting, medical underwriting involving full medical reports, black box and interactive underwriting using reflexive questioning. BSLI and RTP held a variety of meetings to define project scope, requirements (business and technical) module testing, customizations and more. An ancillary goal of BSLI was to be able to operate completely independent from RTP soon after implementation. That would mean that administration tool training and rules training would be an important part of the deliverables. AURA went live at BSLI on November 11, 2005, seven months after the contract was signed. The results were immediate. Non-medical underwriting was reduced from two days to one day, with 50% of the applications approved almost immediately. The consistency of the decisions was apparent, with anecdotal data to prove that BSLI had significantly reduced their risk. The number of medical underwriters in-house remained the same though the volume grew by 100%. Non-medical underwriting headcount was able to be reduced by 70%. AURAs response time was calculated at approximately 2 seconds per case.

CLASSIFICATION OF RISK:
The factors affecting risk on the life of an individual are called hazards. Hazards may be (i) physical (ii) occupational (iii) moral. Physical hazards are: Age : as age increases the probability of death increases. These probabilities are built into the mortality tables and thereby into the premium rates. Sex : mortality of female lives are seen more than male lives at younger ages, among the poorer and uneducated sections.

Build: build includes height, weight,and the chest and abdoment measurements, may suggest tendencies towards cardiac and other ailments like diabetes or tb. Physical condition : the medical examination of reflexes ,blood pressure , pulse rates ,urine etc provides data with regard to the condition of important system of body.

Physical impairments: blindness, deafness, etc and other conditions ,which are not illness , are hazards affecting the probalities of death Personal history: this is important as pointers to the health as well as the life style of person. Family history: this is looked at to see weather there is any hereditary factor that makes the person susceptible to illnesses.

Occupational hazards arise out of ones job The nature of the job oor the place in which the job is done have effects on the worker. Contact with or inhalation of fumes, excessive temperatures etc effects health and life spans. Those on flight duties on aircrafts run a greater risk of death by accident. Those working in chemical fatries are likely victims of various respiratory diseases. The safety factor is important in heavy engineering factories, working at heights, working with high speed machines, etc.

Moral hazards refers to the intention of the proposer. If the proposal is being made because there is a genuine need for insurance, there is no moral hazard. If the intention is to seek undue advantage through the insurance policy, there is some moral hazards. Moral hazard is not measurable. Underwriter would hesitate to accept such proposal at any cost.

Moral hazards can be suspected if proposer is old, has not been insured so far and the proposal is for a large amount. If the proposal is for the amount much larger than what the income would justify. A large amount of insurance is proposed on the life of a family member while the main earning members are not insured or are insured for relatively small amounts.

Data for underwriting: The underwriter makes his decision on the basis of following: The statement made by the proposer in the proposal form, which are assumed to be correct, providing data about himself and the persn to be insured , habits and family history. Report of the medical examination Report of the agent or other officials. In case of large SA, the underwriter may ask for additional medical reports, or from senior officials. A report from the agent is must in all cases.

Risk management:
Risk management is a two-step process - determining what risks exist in an investment and then handling those risks in a way best-suited to your investment objectives. Risk management occurs everywhere in the financial world. It occurs when an investor buys low-risk government bonds over more risky corporate debt, when a fund manager hedges their currency exposure with currency derivatives and when a bank performs a credit check on an individual before issuing them a personal line of credit. The process of identification, analysis and either acceptance or mitigation of uncertainty in investment decision-making. Essentially, risk management occurs anytime an investor or fund

manager analyzes and attempts to quantify the potential for losses in an investment and then takes the appropriate action given their investment objectives and risk tolerance.

RISK MANAGEMENT PROCESS


1. Risk Assessment: After examining the data available, the underwriter will make a decision about the level of risk in particular case. The underwriter need not to be actuary but would be capable of interpreting data in the proposal papers in terms of risk. He may avail of the assistance of doctors, who have been associated with life insurance companies and have specialized knowledge about the effect of medical conditions on mortality. The assessment of risk is mainly a matter of individual judgement. Some insurers have developed guidelines on how to identify and interpret data, which is significant to risks.

2. Risk analysis: (i)Risk identification: Risk identification sets out to identify an organizations exposure to uncertainty. This requires an intimate knowledge of the organization, the market in which it operates, the legal, social, political and cultural environment in which it exists, as well as the development of a sound understanding of its strategic and operational objectives, including factors critical to its success and the threats and opportunities related to the achievement of these objectives. Risk identification should be approached in a methodical way to ensure that all significant activities within the organization have been identified and all the risks flowing from these activities defined. Hence, risk identification can start with the source of problems, or with the problem itself.

Source analysis: Risk sources may be internal or external to the system that is the target of risk management. Examples of risk sources are: stakeholders of a project, employees of a company or the weather over an airport.

Problem analysis: Risks are related to identified threats. For example: the threat of losing money, the threat of abuse of privacy information or the threat of accidents and casualties. The threats may exist with various entities, most important with shareholders, customers and legislative bodies such as the government. (ii) Risk description: The objective of risk description is to display the

identified risks in a structured format, for example, by using a table. The risk description table overleaf can be used to facilitate the description and assessment of risks. The use of a well designed structure is necessary to ensure a comprehensive risk identification, description and assessment process. By considering the consequence and probability of each of the risks, it should be possible to prioritize the key risks that need to be analyzed in more detail. Identification of the risks associated with business activities and decision making may be categorized as strategic, project/ tactical, operational. (iii) Risk estimation: Risk estimation can be quantitative, semi quantitative or qualitative in terms of the probability of occurrence and the possible consequence. For example, consequences both in terms of threats (downside risks) and opportunities (upside risks) may be high, medium or low. Probability may be high, medium or low but requires different definitions in respect of threats and opportunities of risks. The use of a well designed structure is necessary to ensure a comprehensive risk identification, description and assessment process. By considering the consequence and probability of each of the risks, it should be possible to prioritize the key risks that need to be analyzed. Risk reporting threats and opportunities:

In this a report is prepared so as to find out the threats and opportunities which can occur. In this consequences of incidents and the probability of its occurring are determined. The consequences may be termed in qualitative terms such as financial loss. It can also be expressed quantitatively. From this a level of risk may be determined for each threat or hazard.

3. Risk evaluation: When the risk analysis process has been completed, it is necessary to compare the estimated risks against risk criteria which the organisation has established.The risk criteria may include associated costs and benefits, legal requirements, socioeconomic and environmental factors, concerns of stakeholders, etc. Risk evaluation therefore, is used to make decisions about the significance of risks to the organization and whether each specific risk should be accepted or treated. 4. Risk reporting and communication: Reporting is done by 2 ways: (i)Internal reporting (ii)External reporting In internal reporting is done to: To know the most significant facing the organization Ensure appropriate knowledge of awareness throughout the organization Know the organization will manage the crisis know how to manage communications with the investment community where applicable understand their accountability for individual risks Understand that risk management and risk awareness are a key part of the organizations culture.

In external reporting, a company needs to report to its stakeholders on a regular basis setting out its risk management policies and the effectiveness in achieving its objectives. Increasingly stakeholders look to organizations to provide evidence of effective management of the organizations non-financial performance in such areas as community affairs, human rights, employment practices, health and safety and the environment.

USERS OF RISK MANAGEMENT Risk Management practices are widely used in public and the private sectors, covering a wide range of activities or operations. These include: Finance and Investment Insurance Health Care Public Institutions Governments

Effective Risk Management is a recognized and valued skill. Educational institutions have formal study courses and award degrees in Risk Management. The Risk Management process is well established. (International RM process standards.) Risk Management is now an integral part of business planning. ADVANTAGES OF RISK MANAGEMENT To achieve the objective of the organisation To ensure that the goals short term and long term are achieved without any delay To optimize the utilization of resources To have knowledgeable insurance arrangements and have considered decisions on insurances not to be availed.

Insurance Risk Management


Risk management is very important for insurance industry. Insurance means that insurance companies take over risks from customers. Insurers consider every available quantifiable factors to develop profiles of high and low insurance risk. Level of risk determines insurance premiums. Generally, insurance policies involving factors with greater risk of claims are charged at a higher rate. With much information at hand, insurers can evaluate risk of insurance policies at much higher accuracy. To this end, insurers collect a vast amount of information about policy holders and insured objects. Statistical methods and tools based on data mining techniques can be used to analyze or to determine insurance policy risk levels.

CHAPTER :4 BRANCH OPERATIONS

UNDERWRITING GUIDELINES FOR BRANCH OPERATION


Understanding Underwriting Underwriting refers to the task of identifying, selecting, classifying and assessing the risk accurately so as to safeguard the financial well being of insurance company. It involves making a decision to either accept or decline a proposed risk and is based on the interpretation of the available medical and financial data.

Common Terms of Underwriting Insurable Interest A person has an insurable interest in something when loss or damage to it would cause that person to suffer a financial loss. The owner should not profit out of the death of the life insured. Utmost Good Faith Applicant has a legal responsibility to disclose to the best of his or her knowledge any information requested by insurance company during the application and underwriting process.

AURA or Automated Underwriting and Risk Analysis


AURA is an underwriting software designed with an aim to achieve speed with quality in arriving at underwriting decisions. The AURA Black Box would process applications based on the information available and the rules set in the AURA engine and arrive at an underwriting decision. Cases which get cleared through the AURA Black Box would not be handled by a human underwriter at any stage and would be slotted for issue settle directly by the system. AURA percentage can be improved by the following mentioned guidelines 1. Age Proofs Get age proof self attested by the client Clients signature on the age proof should tally with the sign done on the application Vernacular age proofs should be self attested by the client and translated. The sign and designation of the branch person who has translated should be indicated. Check whether DOB/Name/Surname in age proof is tallying with that in application Check authority signature and stamp on the age proof. 2. Existing policy information Previous policy numbers with BSLI should be mentioned in the application form. First question of the application (Do you have an existing policy with BSLI) On the age proof column of the application (between DOB and gender) 3. IAR related

Avoid overwriting/ use of white ink in any of the IAR questions All the questions should be answered IAR should be signed by the advisor and witnessed by one of the authorities as per the application. Name of the client should be written on the IAR Any overwriting on the IAR should be authenticated by the AURA 4. Application signature and witness Application should be signed by the client and witnessed by the advisor at the proper place. In case the Life assured and owners are different in a major life application, then both the Life assured and owner should sign the application form at the designated places. In case of advisors or AMs own application, it should be witnessed by higher authorities eg IAs own application will be witnessed by AM etc.

Financial Underwriting
The basic purpose of Life Insurance is to compensate the dependent suffering from financial loss in case of uncertain death or disability of the bread winner. Financial underwriting is an assessment of whether proposed sum assured and product are reasonable when considering the potential financial loss. Need for Insurance and Capacity to Pay are the basis of Life Insurance. A person should never be more valuable dead than alive. Tools of Financial Underwriting Application form FIQ - duly completed and signed by the Life Assured

Financial justification from the BH/RM Income Proof

Minor Lives Proposer allowed: Natural parents, Legal guardian, Parents who have adopted, Grandparents (paternal as well as maternal), HUF. Insurable interest must be present. Additional requirements: If Grandparent is the proposer, NOC signed by parents. If legal guardian is proposer, guardianship certificate is needed If the child has been adopted, Adoption deed is mandatory Riders : Only WOP (Death/ TPD/ CI)- if policy owner is a legal guardian/natural parent (father/ mother). Note Maximum amount of insurance permissible for minors is half of the cover existing on parents lives. Financial decision would be based on existing family insurance, adequacy of parents income.

Female Lives
Women with earned income by virtue of employment (Gainfully Employed): Financial underwriting rules would be the same as for male lives. Women with unearned income (income from Property/Investments):

Widow Lives
Widows without any income: No insurance cover will be granted.

Widows who have received compensation from employer of spouse : May be granted insurance under investment plans, single premium plans. Widows with pension : May be considered for investment plans. Widows having own income : Gainfully employed women, financial underwriting as per employed females. Requirements Special Report from Branch Head/Relationship Manager Mandatory for all widow lives. Details required in a Special Report: Realistic Income Sources of Income Active Participation in Business Need for Insurance Details of Family Insurance

Key Man Insurance Copies of Memorandum and Articles of Association A resolution of board of directors intimating their desire to have a policy on the life of the Key person named in the resolution and the amount and plan desired. It should also state the name of an authorized signatory of the company who will sign the application form. Key person Questionnaire signed by the key person and authorized signatory of the company. Copy of audited accounts, profit and loss account and balance sheet of the company for the last three years, duly certified by the companys signatory and the Insurance advisor. Financial Requirements -

Individual income tax return of the key person. Consent for the endorsement to be placed on the policy.

Key Man under Partnership


Only for active partners: Key man insurance to partnership firm is allowed because active partners are the source of profits to the firm and in the absence of such partners, there will be significant loss of the firm. Documentation in this case will be different from key man proposal by a company. Financial requirements: In case of key man partnership, there is no board resolution and memorandum as well as article of association instead a supplementary partnership deed and letter incorporating all the details of board of resolution signed by all the partners and the partnership deed.

Employer Employee Insurance


There are two options available under the employer- employee insurance scheme. Scheme 1: Employee is both the Life Insured and Owner of the policy The Application should be accompanied by a letter from Employer stating that the premium under the Policy will be paid by the Employer. Scheme 2: Employer is the owner of the policy Application will be signed by both the employee and the employers authorized officer as life to be insured and owner respectively. The application should be accompanied by a letter from the employer stating the following 3 clauses: Objective of Insurance That the employer would assign the policy to the Life Insured immediately on issue of the policy. The letter shall form a part of the proposal.

Restrictions The employee should not have beneficial ownership in the employer company in excess of 5%. For ascertaining the limit of 5%, shareholding or ownership held by the concerned employee, his/her spouse, children, parents, brother, sister or son-in-law/daughter-in-law should be aggregated together.

Hindu Undivided Family (HUF)


HUF is a joint family consisting of all persons lineally descended from a common ancestor including wives and unmarried daughters. Hence, HUF can be defined as a group of members of the same family. A single person, male or female, cannot constitute a Hindu undivided family. HUF consists of:- Karta , Co parceners In HUF cases no nomination/assignment is allowed. The policy is always the property of the HUF Underwriting Guidelines The sum assured in a HUF policy will be considered only on the basis of the income of the HUF. Individual income of karta/ co - parceners will not be taken into consideration for granting any cover. A HUF addendum, duly signed and stamped by the Karta of the HUF, should be submitted along with the application and should include the following details: Name and age of the Karta Name and age of all co parceners and their relationship with the Karta Purpose of HUF Details of all policies sourced through HUF. The application must be signed by the Karta as the owner.

Partnership Insurance
Partnership insurance is a concept developed exclusively for partnership firms to protect it from the financial liability arising out of the premature death of a partner. Financial Requirements: Copy of original and supplementary partnership deed. Consent letter to place an endorsement on the policy. Copies of Income Tax Returns for last 3 years Copies of latest Audited Profit and Loss Account and Balance sheet for last 3 years Statement showing capital amount of the partners.

Married Womans Property Act


Married Womans Property Act, provides that a policy of insurance effected by any married man on his own life, and expressed on the face of it to be for the benefit of his wife, & children, or any of them, shall ensure and be deemed to be a trust for the benefit of his wife, or his wife & children, or any of them according to the interests so expressed, and shall not, so long as any object of the trust remains, be subject to the control of the husband, or to his creditors, or form part of his estate. Married Womans Property Act can be issued to all proposers resident in India (excluding Jammu & Kashmir State). Beneficiaries: The person who can be beneficiaries under MWP Act policies are, the wife alone, any one or more children alone, or the wife and any one or more children. Underwriting Guidelines The proposer is not residing in Jammu & Kashmir. The proposer is a married man or a widower or a divorced man. The policy is on proposers own life. Nomination and Assigment is not allowed. MWP addendum should be completed filled and signed.

POLICY ISSUANCE PROCEDURE


Policy form is received. Documentation check. KYC document check. Age proof check. Signature verify. Full form checking. Header entry in the system. Receipt issued. Scanning( AURA) Courier send to head office.

CLAIM SETTLEMENT PROCESS:


All claims shall be assesed by HO by client services. All the documents other than the birla sun life claim forms needs to be attested by branch head or relationship manager. BSLI may also have an investigation made into the bonafide of any claim where it is considered neessary. Role of an advisor/ agency manager on the receipt of claim from the claimant/beneficiary, arrange to submit the online claim notification form duly completed to the HO. Follow up with beneficiary of the life insured for the requirements, and arrange for early submission of the same. On receipt of the requirements, check the same for completeness. All claim documents including the copy of the death certificate needs to be attested by the branch head/ specified person.

Ensure all the questions in the forms have been replied, in the claimm forms whenever there is a mention of documents attached/ reports attached confirm that the said documents/ reports are duly attached.

Types of claims: Death claim Unnatural death claim CI/ CI17 rider claims WOP rider claims AD&D/TPD claims Mandatory requirements

1. Normal death claim:


The intimation of the death must reach HO through online claim notification form. The advisor intimating the HO about the event must check that the intimation of event received by them must satisfy two conditions. It must be from a proper person and must establish beyond doubt the identity of the deceased person as the life insured under the policy. The following are the requirements in case of a non-early death claim Online claim notification form Death certificate issued by muncipal authority/ gram panchayat in specified format. Original policy documents Claimant statement Discharge form Legal evidence of title where there is no nomination, assignment or the policy has not been issued under MWP act. Early claims:

A claim is early when a policy has not completed two policy years during the lifetime of the life assured or policy has been reinstated within two yearsprior to the death of the life assured. Claim requirements: In addition to the requirement called for non early claim the following are the additional requirements: Last attending physician statement Family physician statement Certificate of treatment in hospital Employers certificate(if employed) Advisor confidential report.

2. Unnatural death claim:


If the death of the LA is for any reason other than natural or due to illness, it is termed as unnatural death claim. In such cases, the following reports would give an indication of whether the death was by accident or suicide or whether the LA was under the influence of alcohal,etc. Requirement for unnatural death claim: In addition to the normal requirements for natural death claim the following additional reports would be required in case of unnatural death claim. FIR Panchnama report Police inquest report Post- mortem report.

3. CI/ CI17 rider claims:

The critical illness rider pays the coverage face amount if the life assured is diagonosed to be suffering from any one of the four/ seventeen illness specified and the life assured survives the specified illnesess for a period of atleast 30 days from the date of diogonosis. Claim requirements: Critical illness claimentt statement Family physician stattement Hospital treatment certificate Original policy documents Copies of all medical reports pertaining to the illness 1. laboratory reports 2. histopathology reports 3. specialist reports

4. WOP rider claim:


On the happening of select insured events for which this rider has been purchased and on approval of the claims by BSLI, co will waive all future premiums due subject to the conditions specified in the annexure. Claim requirements: In addition to the normal requirements for an early claim the following report would be required. Deed of relinquishment

5. AD&D/ TPD claims:


This rider pays all or part of the face amount to the life assured if the life assured losses certain specified body parts provided that all the following events take place: Dismemberment occurs while the rider is in force

Due proof is filed with head office that dismemberment was caused solely by external, violent and accidental manner.

Claim requirements: FIR( if any) Police inquest report (if any) Questionnaire to be completed by the life insured claiming dismemberment benefit Questionnaire to be completed by the doctor / hospital which treated the life insured for his injury/ dismemberment.

CHAPTER: 5 HOW TO SELL INSURANCE POLICY??

Insurance is considered one of the most difficult products to sell. The sale is mostly push sales, driven by the sales agent/ employee. However, the companies spent a lot of money on advertisement and promotions.

BIRLA SUNLIFE INSURANCE SALE PROCESS


PROSPECTING
Actively seeking individuals, who would benefit from your services. To sell the product our first target is to find out the individuals those are interested in taking up the policy. We can start our search as follow: Firstly , we can start from your family members. it can any member of your family, your spouse, children, parents

We can contacts with all your friends, relatives those are in your current contact or; We can also contact with your old friend at college time, old job colleagues. We can also use are email id facebook to inform your net friends. If you are in a business you can contact with your old customers.

SEEKING APPOINTMENTS
When you find out person who are interested in taking up a policy we can fix the appointment with them. The is usually done over the phone. In this step you tell him about your company, about your plan, and get information whether the person is interested in buying your product. This is the first step towards your goal.

MEETING THE PROSPECTS:


If the person is interested for taking the policy we meet with the customer. This is the first formal face to face meeting with your future customer. Our preparation decides yours chances of moving to the next stage. Advisor/agent should have following qualities; he/she should be very confident, he should have all the knowledge about plans, about company, so he/she can easily give the answers of customer. Advisor/agent having good communication skill at the stage, Have good personality

IDENTIFYING PROSPECTS NEEDS


There are different products of birla sun life insurance, according to the needs of customers. for example, Individuals plans and nri plans group and it is the responsibility of agent to identify the need of customer and give information about that

policy and plan. BSLI is the company that provide demo to the customer how the policy perform. For example advisor give all the information that accrording to your needs that are the plans, this is interest rate. And if you are taking up a policy you get this much amount.

PRESENTING SOLUTIONS
When advisor identify the needs of customer, by asking some question o How many member they have o Their income, dream of life o Children o Any health diseases on the basis of this advisor should what is the need of customer and tell them about that particular policy. For example if a person have 2 child and he is a driver he wants to take up a policy that suit to their income. Than advisor tell him about only that plan that fulfil his needs as well as suit to his income.

CLOSING & REFERENT


When person is ready, to invest money in your insurance then, Advisor give him proposal form and ask for all the documents required. Proposal form is 4 page document that contain all the necessary information that are related to the insured and owner of the policy. Document required along with the proposal form. Date of birth proof Address and id proof Income certificate Medical certificate only if insurer is a senior citizen.

SERVICING
Now after the insurance is sold. All the requirements are completed. Advisors needs to maintain good relation with policyholder. Insurer further business with the exciting policyholder are satisfied with the services being provided by advisor of co. The BSLI always inform the policyholder by sending email or letter by post about their premium has received and their reaming premium and date at which you have deposit the money with BSLI.

CHAPTER: 6 PEOPLE AWARENESS TOWARDS BIRLA SUNLIFE INSURANCE

I presented all the data based on questionnaire filled up by me from the peoples of rural and urban area and I analyzed the data and presented it in the project. I visited alipur, kasampur, sofi pind, nawanshahr region and filled up the questionnaire from the general public to know the awareness level towards the BIRLA SUN LIFE INSURANC Company.

Te sample size is 100 and I analyzed the questionnaire filled up by the rural public and I interpret the data. I presented it by graphs. This data is very beneficial for the company to focus on these regions.

TOTAL NO. OF RESPONDENTS Village Name ALIPUR SOFI PIND KASAM PUR NAWANSHAHR Total No. of Respondents 30 30 20 20 100

Interpretation:-. From the above graph it is clear that 30 respondents belong to ALIPUR, 30 to SOFI PIND, to 20 to and 20 to NAWANSHAHR. The total no. of the respondents are 100.

1) Do you know about BIRLA SUN LIFE INSURANCE ?


No of respondents in % Yes NO 60% 40% 56. 67% 43.33% ALIPUR SOFIPIND KASAM PUR 15% 60% NAWANS HAHR 70 % 30%

Interpretation: From the above graph it is clear that majority of the respondents are aware of BIRLA SUN Life Insurance. In Alipur only 60% respondents are aware of Birla Sun Life Insurance and remaining 40% are not aware of it. In Sofi Pind only 56.67% respondents are aware of Birla Sun Life Insurance and remaining 67.50% are not aware of it. In kasam pur only 15% respondents are aware of Birla sun Life Insurance and remaining 85% are not aware of it.

In nawanshahr

70% respondents are aware of Birla sun Life

Insurance and remaining 30% are not aware of it.

Q2) Do you know what is life insurance?


No of respondents in % Yes NO 80% 20% 90% 10% ALIPUR SOFIPIND KASAM PUR 57% 43% NAWANS HAHR 95 % 5%

Interpretation: From the above figure it is clear that majority of the respondents know what is Life Insurance. In ALIPUR 80% respondents are aware of Life Insurance and remaining 20%are not aware of it. In SOFI PIND 90 % people are aware of life insurance and remaining 10% all the respondents are aware of Life Insurance. In KASAM PUR 53% respondents are aware of Life Insurance and remaining 43% are not aware of it.

In NAWANSHAHR 100% respondents are aware of Life Insurance and remaining are not aware of it..

Q3) What Kind of investment products you have? Kind of Alipur 3.33% 56.67% 23.3% 86.6% 36.67% Sofi pind 10% 60% 16.67% 93.35 20% Kasam pur 23.3% 6.67% 93.3% 60% nawansh ahr 30% 60% 35 95 15

investment MF PO FD Saving A/c Other

Q4) Do you have life insurance policy?


No in % Yes NO of ALIPUR SOFI PIND 66.67% 36.67% 73.33% 26.67% KASAM PUR 25% 75% NAWANS HAHR 45% 55%

respondents

Interpretation: From the above graph it is clear that majority of the respondents have life insurance. In ALIPUR village 66.67% respondents have life insurance policy and remaining 36.67% respondents havent any life insurance policy. In SOFI PIND 73.3% respondents have life insurance policy and remaining 26.7% respondents havent any life insurance policy. In KASAM PUR 25% respondents have life insurance policy and remaining 75% respondents havent any life insurance policy.

In NAWANSHAHR 45% respondents have life insurance policy and remaining 64% respondents havent any life insurance policy.

Q6) If yes, from which company?

Company LIC Bajaj Allianz Birla sun life ICICI Prudential Other Interpretation:

ALIPUR SOFI PIND KASAM PUR NAWANSH 85% 5% 8% 15% 25% 95% 0% 5% 6% 13% 90% 6% 0% 4% 2% AHR 98% 0% 3% 5% 27%

As we know that LIC is the oldest and Govt Company and majority of the respondents have Life Insurance with LIC. In ALIPUR 85% respondents have insurance with LIC, 5% with Bajaj Allianz, 8% BIRLA SUN LIFE and 15% respondents have insurance with ICICI Prudential. In SOFI PIND, 95% respondents have insurance with LIC, 5% with BIRLA SUN LIFE INSURANCE, 6% with ICICI Prudential.

In KASAM PUR 90% respondents have insurance with LIC, 6%with Bajaj Allianz and 4 % with ICICI Prudential.

In, NAWANSHAHR,98% people have insurance policy with lic., and remaining 5 % deposited in icici.

Q7) what kind of insurance/investment plan do you want to take?


Kind of Insurance /Investment Plan Long Term Short Term ALIPUR KASAM 11% 89% PUR 15% 85% SOFI PIND 53% 47% NAWANS HAHR 22% 30%

Interpretation: From the above graph it is clear that majority of the respondents would like to invest in Long Term Plans. In ALIPUR village 11% respondents want to take Long Term Plan and 89% respondents are in the favor, of short term plans. In SOFI PIND village 15% of respondents want to take Long Term Plan & 85% want to take short term plan. In KASAM PUR village 53% respondents want to take Long Term Plan and 47% respondents are in the favor of short term plans.

In NAWANSHAHR village 22% respondents want to take Long Term Plan and 78% respondents are in the favor of short term plans.

Q8) what is your basic requirement from your investment and insurance plan? (Rank them)

Particulars Liquidity Security Returns Tax Benefit

ALIPUR SOFI 40% 50% 90% 25% PIND 20% 60% 82% 33%

KASAM PUR 52% 45% 75% 15%

NAWANS HAHR 65% 25% 95% 30%

From the above graph it is clear that most of the respondents buy insurance policy for the purpose of good returns. In ALIPUR 90% respondents buy insurance policy for the purpose of good returns, 50% respondents have given preference to security, 40% each to liquidity and 25% respondents to tax benefits.

In SOFI PIND village 82% respondents buy insurance policy for the purpose of good returns, 60% respondents have given preference to security, 20% to liquidity and 33% respondent wants to tax benefits. In KASAM PUR village 75% respondents buy insurance policy for the purpose of good returns, 45% respondents have given preference to security, 52% to liquidity and 15% respondents want to tax benefits.

In NAWANSHAHR village 65% respondents buy insurance policy for the purpose of good returns, 25% respondents have given preference to security, 95% to liquidity and 30% respondents want to tax benefits.

9) What are the purposes of your investment?

Particulars Children Education Child marriage Returns/Profits Retirement Business

ALIPUR SOFI PIND


90% 25% 45% 37% 0%

KASAM NAWANS HAHR 70% 17% 30% 37% 45%

PUR 75% 34% 45% 67% 65% 0% 45 10% 52% 0%

Interpretation: From the above graph it is clear in rural areas majority of the respondents would like to make their investment in Children Education.

In ALIPUR village 90%respondents have made investment in children education and 25% respondents made investments in child education and 45%peole wants profit and only 37% for retirement. In SOFI PIND, village 75% respondents have made investment in children education or 45% in child marraige and 65% respondents made investments for good returns & 52% respondents made investments for business and only 45% for retirement. In KASAMPUR village 34% respondents have made investment in children education while, 67% people invest money for child marriage and 22% for good returns and 10% for retirement and no one for investment.

In NAWANSHAHR village 70% respondents have made investment in children education, 30% for good returns and 45% for the purpose of business.17% for child marriage and 37% for retirement.

Q10) Are you satisfied with your current investment plan?


No in % Yes NO of ALIPUR S0FI PIND 85% 15% 90% 10% KASAM PUR 90% 10% NAWANS HAHR 92% 8%

respondents

Interpretation: From the above graph we can conclude that most of the respondents are satisfied with their current investment plan. In ALIPUR village 85%respondents are fully satisfied with their current investment plan and 15% are not satisfied with it.

In SOFI PIND village 90% respondents are fully satisfied with their current investment plan and 10% are not satisfied with it. In KASAM PUR village 90% respondents are fully satisfied with their current investment plan and10% are not satisfied with it.

In NAWANSHAHR village 92% respondents are fully satisfied with their current investment plan and 8% are not satisfied with it.

Q11) Do you about other plans offered by BIRLA SUN LIFE INSURANCE? No in % Yes NO of ALIPUR S0FI PIND 5% 95% 17% 83% KASAM PUR 0% 100% NAWANS HAHR 6% 94%

respondents

Interpretation: From the above graph we can conclude that most of the respondents are satisfied with their current investment plan. In ALIPUR village 5%respondents said that they have knowledge about the other plan providing by the company. But the majority of people of this village have no such knowledge. In SOFI PIND village 90% respondents said they have knowledge only about one plan under which they invested their money and 17% are aware about other plans In KASAM PUR village no one is aware about other plan providing by company.

In NAWANSHAHR village, only 6% respondents have knowledge that company providing many other plans like NRI PLAN group

plan and time to time they company change plan or introduce new plans.

Q 12) DO YOU THINK LIFE INSURANCE PROVIDES YOU LIFE TIME VALUE? No in % Yes NO of ALIPUR S0FI PIND 90% 10% 98% 2% KASAM PUR 90% 10% NAWANS HAHR 92% 8% respondents

Interpretation: From the above graph we can conclude that most of the respondents are satisfied with their current investment plan. In ALIPUR village 90%respondentsthink life insurance provide life time value while 105 think oppositely. In SOFI PIND village 98 respondents are more positive they think yes life insurance provide security to our lives and only 2% people are against of this. In KASAM PUR village 90% respondents said yes that life insurance provides life time value and on the other hand side, 10 percent said no.

In NAWANSHAHR village 92% view that life insurance provides life time value while 8% said that insurance not provides life time value. Because we cant withdrew money when we need. it.

Q 13) Do you think life insurance is better than other investments? For example Saving account, FD, PO OTHERS. No in % Yes NO of ALIPUR S0FI PIND 65% 35% 98% 2% KASAM PUR 93% 7% NAWANS HAHR 88% 12%

respondents

Interpretation: From the above graph we can conclude that most of the respondents are satisfied with their current investment plan. In ALIPUR village 65%respondentsthink life is better option than other investment In SOFI PIND village 98 respondents are more positive they think yes life insurance is good than other investement because you get almost double amount after a long period. 2% people are against of this. In KASAM PUR village 93% respondents said yes that life insurance is better than other and on the other hand side, 10 percent no because they feel there is same interest rate as in the banks because bank

In NAWANSHAHR village 92% view that life insurance provides life time value while 8% said that insurance not provides life time value. Because we cant withdrew money when we need. it.

CHAPTER :7 FINDINGS AND SUGGESTIONS

FINDINGS:
Birla Sun Life Asset Management Company has one of the largest team of research analysts in the industry, dedicated to tracking down the best companies to invest in. There is a good relation exist between the employees and management. BSLI provides good welfare facilities. The age groups of selected advisors are quiet encouraging. 53 % are over age of 55 years which is quite good for company because they much more trusted by the prospect than the other age group. Most of the selected advisors have a good qualification. Most of them are graduate and post graduate. All most 50% of the new advisors give full time to their profession. This shows how new advisors are dedicated towards their new profession. Employees wish to acquire skills through continuous training. Selection is advisors in base on commission basis so there is always a big possibility of extra income. Hard working advisors can earn more than expectation, because there is no limit of earning. If advisors sell more policy he can get more commission. From the above study it is clear that majority of the respondent do not aware of Birla sun life insurance. Even when I ask that you never see advertisement in the T. V. they said, no. only few people know about Birla that is an insurance company. All the people know about LIC. People have knowledge about insurance but they dont even know the interest amount only few respondents those have knowledge about plan under which they deposit there money.

Some people said they think there is no benefit of life insurance because when they need money for some other purpose they cant withdrew it and I saw 5 cases who lost their money just because of they dont have money at that time.

Majority of people said, it is better to deposit you money in the saving account rather than depositing in the insurance company.

Mostly agent dont give exact and true information and they even many agent sell their policy of other company with the name of LIC.

Here I would like to add one case of village alipur, one respondent said, when they took a policy agent said that you have to deposit 1lac 25 thousand annually but after one year they come to know that you have to deposit your money quarterly now you have to deposit 5 lac. They were shocked and talked with the branch manager and he ask for that agent. They said they dont have information of such person. And they lost their 1 lac rupees.

From the above study it is clear that majority of the respondents know what is Life Insurance.

It is clear from the above study that in rural areas, majority of the respondents have made investments in Saving Accounts.

From the above study it is clear that majority of the respondents have life insurance. And they invest money in the long term returns. But actually they are not satisfied with this. They want short term returns period 5 year they said 10 year is a long period but there is benefit of deposit money in short term because interest rate is less but after a long period they get almost double amount.

LIC is the oldest and government undertaking corporation so majority of the respondents have Life Insurance with LIC.

From the above study it is revealed that most of the respondents buy insurance policy for the purpose of child education and marriage and returns. But people in

the villages dont take policy to safe their old age. Only few people who invest money for retirement From the above study it is clear in rural areas majority of the respondents would like to make their investment in Children Education. From the above study we can conclude that most of the respondents are satisfied with their current investment plan. Because they dont have other information about other investments plans.

SUGGESTIONS:
Even though most of the policy holders are satisfied with policies, plans they have but some new attractive insurance plans should be introduce to bind them not to switch over to other companies insurance plans. The company should find out the no. of people who are not having any of the insurance plans through an intensive market research and motivate them to get insured. 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. Company should target each and every class of the society. Company should provide full information to the customers before targeting so they can take interest.

Birla sun life insurance should cover uneducated people, as they are not aware of the advantages of the policies for tax savings.

Birla sun life insurance should cover rural areas, as they are also the segment of population not aware of the advantages of policies.

Birla sun life insurance must conduct seminars and presentations at all kinds of places whether cities or towns and focus should be on people who have large network of references.

Moreover presentations should be conducted at places where more and more people are available such as village panchayats, educational institutes, hospitals etc.

The agent should be provided with more and more incentives so that they can keep further some assistants who can help them to fetch more policies side by side what agents themselves fetch out. Birla sun life insurance should do efforts to promote the brand name and create awareness through channels such as advertisements. Measures to build faith among people about Birla sun life insurance Life Insurance must be taken on accounts of its reliability, credibility, responsibility, sincerity and the long lasting establishment. Since all the riders attached with any of its products is along with a slight increment in the premium rates, as such a few cost free riders should be designed to attract more customers. The agent should not only be provided with training at the time of selection but they should also be given refresher training periodically. be given the training for at least one week. It increases their professionalism and make them more competitive. Every year the agents should

The agent should be given sufficient traveling allowance so as to compensate the expenditures made by them to meet customers from one village to another village.

Bibliography:
www.birlasunlife.com www.irda.gov.in Birla sun life New Advisor Book www.google.com Brochures of company Fund flash of company Dream weavers provided by the branch