Report on Summer Training CONSUMER BEHAVIOUR TOWARDS LIFE INSURANCE Submitted to Doaba Group of Colleges, Chhokran (Rahon)

(In partial fulfillment of the Requirements for the award of Degree of Master of Business Administration)

Submitted by: RAJESH KUMAR University Roll No:-100272244013

DEPARTMENT OF MANAGEMENT DOABA GROUP OF COLLEGES CHHOKRAN, RAHON (2010-2012)

ACKNOWLEDGEMENT

I would like to take this opportunity to thank all those who have helped me tremendously during the course of the project. My heartiest thanks are due to many persons for assistance in this project to present state. The profound gratitude to our teachers especially; Miss Mukta Goyal for being my guide throughout the completion of this project. Mr. Alok Kumar Jha, Branch Manager of Birla Sun Life Insurance at S.B.S.Nagar, for clarifying the problems which I encountered during the preparation of this project. I would also like to thank Mr. Sandeep Kumar (S.A.M), for guiding me throughout my project. I also extend my gratitude to other SDM's and my friends who have helped me directly or indirectly to complete my project. I also acknowledge the Knowledge that I have gained during the preparation of this project.

Rajesh Kumar

EXECUTIVE SUMMARY

This report represents the detail of work; I have done during the training period. This report has been drafted by paying regular visit and caring out the opportunity to work on my project. As there are so many challenging and interesting topics on which I have work, but as I want a subject which adds another feather on the hat of knowledge, so I choose a broad but very interesting topic i.e. consumer behaviour towards life insurance I got an opportunity to complete my summer training in BIRLA SUNLIFE INSURANCE insurance Company to learn about the working of insurance company. 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 filled up the questionnaire from the general public to know the awareness level towards the BIRLA SUNLIFE INSURANCE Insurance Company. This study is very useful for the company to know the behaviour 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.

Series no.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Chapter 1. Chapter 2. Chapter 3. Chapter 4. Chapter 5. Chapter 6. Chapter 7. Chapter 8. Chapter 9. Appendix Bibliography

Content

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Introduction of the subject Industry Profile Company Profile Objective of the Study Research Methodology Data Analysis & Interpretation Findings Suggestions Limitations

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6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11

CHAPTER - 1
Introduction of the subject

INTRODUCTION OF SUBJECT

MEANING OF INSURANCE:-Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks which can be insured against include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance. INSURANCE is a Co-operative device, which spreads, the loss caused by a particular risk to some person, over a number of person who are exposed to same or similar risk & who agree to 'insure' against that risk.

Types of insurance
Automobile insurance Casualty insurance Credit insurance Health insurance Liability insurance Total permanent disability insurance Marine Insurance Political risk insurance Property insurance

CONSUMER BEHAVIOUR TOWARDS LIFE INSURANCE

Consumer behavior is the study of how individuals make decisions to spend their available resources (time, money and effort) on consumption related item (what they buy, when they buy, where they buy, how often they buy and use a product or services). There heterogeneity among people across the world makes understanding consumer behavior an intricate and challenging task. The consumers identity, his beliefs, specific needs, attitudes and the kind of product and brand available in that product category influence his buying behavior. The marketing efforts of a firm have a profound impact on the buying decisions of the customers. Therefore, marketers attempt to obtain an in-depth knowledge of customers buying behavior. The success or failure of a product or service is directly related to the buying behavior of customers. Hence, an understanding of buying behavior of customers helps marketers to come up with innovative products mixes. Finally, buyer behavior acts as an imperative rule in the hands of marketers to forecast the future buying behavior of customers and device marketing strategies accordingly in order to create long term relationship with customer.

CULTURE FACTORS CULTURE SUBCULTURE SOCIAL CLASS

SOCIAL FACTORS REFERNCE GROUPS FAMILY

FACTORS INFLUENCING CONSUMER BEHAVIOR

PERSONAL FACTORS AGE AND LIFECYCLE STAGE OCCUPATION AND FINACIAL STATUS LIFESTYLE

PSYCHOLOGICAL FACTORS MOTIVATION PERCEPTIONS BELIEFS AND ATTITUDE

Chapter 2
Industry Profile

INTRODUCTION

INDUSTRY PROFILE

History of insurance:- Early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BCE respectively. Chinese merchants traveling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen. Achaemenian monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony and when a gift was worth more than 10,000 Derrik (Achaemenian gold coin weighing 8.35-8.42) the issue was registered in a special office. This was advantageous to those presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices. The aim of registering was that whenever the one who presented the gift registered by the court was in trouble, the monarch and the court would help him or her. Jahez, a historian and writer, writes in one of his books on ancient Iran: and whenever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much." The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when they organized guilds called "benevolent societies" which acted to care for the families and funeral expenses of members upon death. Guilds in the middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th

century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used in case of emergency. Separate insurance contracts (i.e. insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed. Toward the end of the seventeenth century, the growing importance of London as a center for trade led to rising demand for marine insurance. In the late 1680s, Mr. Edward Lloyd opened a coffee house which became a popular haunt of ship owners, merchants, and ships captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market for Marine and other specialist types of insurance, but it works rather differently than the more familiar kinds of insurance. Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured 13,200 houses. In the aftermath of this disaster Nicholas Barb on opened an office to insure buildings. In 1680 he established England's first fire insurance company, "The Fire Office," to insure brick and frame homes. In 1752, he founded the Philadelphia Contribution ship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention. Not only did his company warn against certain fire hazards, it refused to insure certain buildings where the risk of fire was too great, such as all wooden houses. In the United States, regulation of the insurance industry is highly Balkanized, with primary responsibility assumed by individual State insurance departments. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through a national insurance commissioner's organization.

In recent years, some have called for a federal regulatory system for insurance similar to that of the banking industry. In the State of New York, which has unique laws in keeping with its stature as a global business center, Attorney General Eliot Spitzer has been in a unique position to grapple with major national insurance brokerages. Spitzer alleged that Marsh & McLennan steered business to insurance carriers based on the amount of contingent commissions that could be extracted from carriers, rather than basing decisions on whether carriers had the best deals for clients. Several of the largest commercial insurance brokerages have since stopped accepting contingent commissions and have adopted new business models.

OVERVIEW OF INDIAN INSURANCE SECTOR

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. 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. This is an indicator that growth potential for the insurance sector is immense in India. 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.

Insurance Regulatory and Development Authority:The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements. Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto." In 2010, the Government of India ruled that the Unit Linked Insurance Plans (ULIPs) will be governed by IRDA, and not the market regulator Securities and Exchange Board of India.[1]

Functions of IRDA:-

1.

Subject to the provisions of this Act and any other law for the time being in force, the

Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. 2. Without prejudice to the generality of the provisions contained in sub-section (1), the

powers and functions of the Authority shall include, Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; Specifying the code of conduct for surveyors and loss assessors; Promoting efficiency in the conduct of insurance business; Promoting and regulating professional organizations connected with the insurance and reinsurance business; Levying fees and other charges for carrying out the purposes of this Act; Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business; Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938); Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries; Regulating investment of funds by insurance companies; Regulating maintenance of margin of solvency; Adjudication of disputes between insurers and intermediaries or insurance intermediaries; Supervising the functioning of the Tariff Advisory Committee;

Chapter 3
Company Profile

COMPANY PROFILE

About Birla Sun Life Insurance (BSLI)

Birla Sun Life Insurance (BSLI) has been operating for over 9 years. It has contributed significantly to the growth and development of the life insurance industry in India. It pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. BSLI has covered more than 2 million lives since it commenced operations. And its customer base is spread across more than 1500 towns and cities in India. The company has a capital base of Rs. 2,000 crs as on March 31, 2009. The current AUM of Birla Sun Life Insurance stands at Rs. 8165 crs as on February 28, 2010.

About Aditya Birla Group

The Aditya Birla Group enjoys a leadership position in all the sectors in which it operates. It is anchored by a force of 100,000 employees, belonging to 25 nationalities. Its operations span 25 countries across six continents and are reckoned as India's first multinational corporation.

Headquartered in Mumbai, India, over 60 per cent of the Group's revenues flow from our overseas operations. The Group nurtures a work culture where success is built on learning and innovation. The Aditya Birla Group has been adjudged "The Best Employer in India and among the top 20 in Asia" by the Hewitt, Economic Times and Wall Street Journal Study 2007. Aditya Birla Group 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 ABFSG are Birla Sun Life Insurance Company, Birla Sun Life Asset Management Company, Birla Sun Life Distribution Company, Birla Global Finance Company, Birla Insurance Advisory & Broking Services, Aditya Birla Capital Advisors and Apollo Sindhoori Capital Investment. The consolidated revenues from these businesses crossed the USD 1 billion mark in 2007- 08. The group collectively enjoys the trust of over 4 million customers, and prides itself for having a talent pool of over 15,000 committed employees. The Vision of ABFSG is to be leaders and role models in a broad based and integrated business. The company aims to be a total solutions provider to all the financial needs of its target customers. This gets truly reflected in the way the Group is structured and operates - one virtual brand many real businesses capitalizing on the immense synergies across its businesses.

Major Achievements of Aditya Birla Group

Largest single location copper smelter Largest aluminum rolling company No.1 in viscose staple fiber The third largest producer of insulators The fourth largest producer of carbon black The eleventh largest cement producer and the second largest in India Among the best energy efficient fertilizer plants Among the worlds top 15 and India's top three BPO company.

The group is India's leading business house with a number of key organizations. These are as follows: 1. Grasim 2. Ultra Tech Cement Ltd 3. Hind Alco 4. Indian Aluminum Company Ltd 5. Aditya Birla Nuvo 6. Idea Cellular Ltd. 7. Birla Sun Life Insurance Co.Ltd 8. Birla Sun Life Asset Mgmt. Co.Ltd 9. Birla Sun Life Distribution Co. Ltd 10. PSI Data Systems 11. Indo Gulf Fertilizers Ltd. 12. Birla Global Finance Ltd

BIRLA SUN LIFE INSURANCE Birla sun life insurance company limited is a joint venture between the Aditya Birla Group and the sun Life Financial services of Canada. It started its operations in March 2001 after receiving its registration license in January 2001. BSLIs core strategy since inception has been to create value for all its stakeholders. This has been driven through innovative and customer focused products and a multi-channel distribution capability in individual and group insurance. The company started its operations with the launch of innovative unit-linked insurance products, being the first private life insurance company in India to do so. The company has geared up through superior value creation and technology in fulfilling its aims to provide multiple products and benefits greater investment opportunities and to provide the vast investor popular in India with better liquidity and security.

The transition of the insurance industry in India from a public monopoly to a competitive environment presents interesting opportunities both to the insurance players as well as to the customers. BSLI plans to spot emerging trends and capitalize on these opportunities for the benefit of its customers. BSLI aims at being a leader in product innovation with new products designed to cater to specific customer needs. The company has a clear thrust on investment linked insurance products and believes in maximizing investment returns for the policyholders. Its unit-linked products offered varied investment options for policyholders to choose, based on their risk appetite. BSLI has been fully complying with its rural services network of the group is being tapped for this purpose. Its clients have already appreciated the companys superior underwriting processes and infrastructure. Its direct sales force of more than 60,000 high quality licensed insurance advisors in major cities and towns in India are the companys flag bearers. The companys insurance advisors in major cities and towns in India are the companys flag bearer. The companys insurance advisors have qualified for the prestigious Million Dollar Round Table (MDRT), COT and TOT, one of the highest international honors in the life insurance industry, in all the years of its operations. Birla sun life insurance pioneered the unique Unit Linked Life Insurance Solutions in India. Within 4 years of its launch, BSLI has cemented its position as a leading player in the private life insurance industry. There has been focus on Investment Linked Insurance Products, supported with protection products to maintain leadership in product innovation. Multi Distribution channels - Direct Sales Force, Alternate Channels and Group offering convenient channels of purchase to customers. Web-enabled IT systems for superior customer services. First to have issued policies over the Internet. Corporate governance and a high degree of transparency in all business practices and procedures. First to have an operational Business Continuity Plan. Strong fundamentals based on the Aditya Birla group's local insight and Sun Life financials global expertise.

74%

100% Equity Share

26%

Landmarks
Birla Sun Life Insurance, one of Indias leading life insurance companies, has set a new milestone, by crossing the landmark figure of Rs. 10,000 crores in Assets under Management (AUM), as on April 24, 2009. Commenting on the achievement, Mr. Vikram Kotak, Chief Investment Officer, Birla Sun Life Insurance, said, It gives us great pleasure to cross the landmark of Rs. 10,000 crores of AUM, and in the process registering a strong growth of 41% year-on-year. This achievement is notable especially in the light of tough market conditions on the back of Global financial turmoil

MAJOR PLAYERS OF LIFE INSURANCE

Life Insurer in Public Sector:1. Life Insurance Corporation of India

Life Insurers in Private Sector:1. 2. 3. 4. 5. 6. 7. 8. 9. 10. SBI Life Insurance MetLife India Life Insurance ICICI Prudential Life Insurance Bajaj Allianz Life Max New York Life Insurance Sahara Life Insurance Tata AIG Life HDFC Standard Life Birla Sun life Kotak Life Insurance

Our Leadership Team

Mr. Kumar Mangalam Birla Mr. Pranab Barua Mrs. Rajashree Birla Mr. Rajiv Dube Mr. Ajay Srinivasan Dr. Rakesh Jain Mr. Askaran Agarwala Mr. Ravi Kastia Dr. Bharat Singh Mr. Himanshu Kapania Mr. D.D. Rathi Dr. Santrupt B. Misra Mr. Debu Bhattacharya Mr. Shailendra Jain Mr. K. K. Maheshwari Mr. Thomas Varghese Mr. Lalit Naik Mr. Tuhin Mukherjee Mr. O. P. Puranmalka Mr. Vikram Rao CHAIRMAN, ADITYA BIRLA GROUP Textiles and Apparels Chairperson, The Aditya Birla Centre for Community Initiatives and Rural Development Group Corporate Services Financial Services Aditya Birla Nuvo Birla Group Trusts & Special Community Projects Trading, Port and Power Projects Business Review Council (Services business) Telecom Business Review Council (Services business) Carbon Black Business and Group HR Metals Chairman, Business Review Council (Manufacturing business) Pulp & Fiber Retail Chemicals Mining and Mineral Resources Development Cement Acrylic Fiber and Overseas Spinning Business

Market Share of all Life Insurance Companies India

In line with expectations, life insurance industrys new business volumes in the individual new business segment remained strong, growing 36% Y-o-Y and 23% M-o-M, in August 2010. In the individual new business segment, while LIC, BIRLA, and HDFC improved WNRP industry market share (YTD) by 3.8 percentage points, 1.25 percentage points, and 0.7 percentage points, respectively, Bajaj Allianz (1.8 percentage points), ICICI (1.5 percentage points), SBI (1.26 percentage points) and Reliance (0.31 percentage points) lost significantly. At 5mFY11 end, private insurers market share stood at ~50%. Here is how Various Life Insurers stack up against each in the Industry as a whole. The following Data suggests that LIC of India is still the market leader followed by ICICI Prudential, HDFC Standard Life, SBI, Reliance, Bajaj, Birla Sun Life, Max New York etc.

1% 2% 2% 3% 4% 6% 5% 8% 4% 5% 10% 50%

LIC ICICI SBI BAJAJ OTHERS RELIANCE HDFC BIRLA MAX TATA MET KOTAK

BIRLA SUN LIFE INSURANCE NAWANSHAHR BRANCH AS ON 31/06/2011

BRANCH MANGER
ALOK KUMAR JHA

BRANCH DEVELOPMENT MANAGER

SENIOR AGENCY MANAGER

(BDM)

(SAM)

FINANCIAL ADVISOR

AGENCY MANGERS:

OPERATIONAL STAFF

TELE STAFF

TRANING STUDENT

PRODUCT PORTFOLIO OF BSLI

1. PENSION PLAN:-

Product Name Company Name Minimum Premium Maximum Premium Minimum Term Minimum age at Entry Maximum age at Entry Vesting Age Minimum age at Maturity Maximum age at Maturity

LIC Pension Plus Life Insurance Corporation of India Rs.15000 p.a Rs. 1,00,000 p.a. 10 Years 18 Years 75 Years Minimum is 40 Years, maximum is 85 Years. Information Not Available Information Not Available

BSLI Secure 58 Plan Birla Sunlife Insurance Rs. 9,600 p.a. No Limit Information Not Available 10 Years 40 Years Maximum - 90 years 18 Years 80 Years 75% of first year base premium and all renewal base premiums paid ; or Surrender value (or the Guaranteed Vesting Benefit) at that time + All accumulated survival benefits 15 Days ----------------------------

Death Benefit

Fund Value

Free Look Period Fund Options Mode Of Payments Switching

15 Days Debt Fund and Mixed Fund

Tax Benefit Grace Period Loan Option

Yearly, Half-yearly, Quarterly Yearly, Half-yearly, Quarterly and Monthly and Monthly You can switch between two funds during the policy term. Information Not Available Two free switches are allowed in a policy year. under Section 80C and Section Under Section 80CCC and 10(10D) of Income Tax Section 10 (10A) of the Income Act,1961. Tax Act, 1961. 30 Days for yearly, half-yearly and quarterly mode, 15 days for 30 Days monthly mode No loan will be available under Information Not Available this plan.

Pension Growth
To grow your capital through enhanced returns over a medium to long term period through investments in equity and debt instruments, thereby providing a good balance between risk and return.

Asset Allocation:

SECURITIES Government Securities Corporate Debt Equity Money Market Instruments TOTAL

HOLDINGS 13.90% 45.41% 18.63% 22.06% 100.00%

22%

14% G ernm Securities ov ent C orporate D ebt Equity

19% 45%

M oney M arket Instrum ents

2. CHILDREN PLAN:-

Product Name Company Name Minimum Premium

LIC - Jeevan Anurag BSLI Saral Children\'s Plan Life Insurance Corporation Birla Sun Life Insurance of India Information Not Available Rs.10,000 p.a

Maximum Premium Minimum Term Maximum Term Minimum Sum Assured Maximum Sum Assured

Information Not Available 10 Years 25 Years Rs.50,000/-

No Limit 10 years 20 years 6 times of Annual Savings Premium

No Limit. Sum Assured will be in multiples of Rs.5,000 /- No Limit only. 18 years 50 years 0 years 21 years Sum Assured

Minimum age at entry of the 20 Years parent Maximum age at entry of the 60 Years Parent Minimum age at entry of the Information Not Available child Maximum age at entry of the Information Not Available child Death Benefit Sum Assured Survival Benefit Maturity Benefit Information Not Available

Free Look Period Minimum Premium Payment 7 Years 10 Years term Maximum Premium 22 Years 20 Years payment term Nominee Information Not Available Child Yearly, Half-yearly, Yearly, Half yearly, Quartarly Mode of payment Quarterly, and Monthly and Monthly

Information Not Available Fund Value + Guaranteed Information Not Available Addition at Maturity. 15 Days 15 days

CHILDREN GROWTH BSLI Saral Children's Plan, a solution that combines the best benefits into a single plan. A plan that gives a guaranteed amount on maturity and keeps the policy alive in the unfortunate event of your death ensuring that your child's future is secure.

Asset Allocation:

SECURITIES

HOLDINGS

Equity Money Market Instruments TOTAL

35% 65% 100.00%

HOLDINGS

35%

Equity Money Market Instruments

65%

3. HEALTH PLAN:LIC Health Birla Sun life Saral Protection Plan Health Plan Life Insurance Birla Sun Life Corporation of India Insurance Minimum Insured is Rs.250 and Rs. 10 Lakhs Maximum Insured is Rs.2,500 10 pay/ 10 term, 10 Information Not pay/20 term and 20 Available pay/20 term Minimum age at Minimum Age at entry

Product Name Company Name Sum Insured

Policy Duration Eligibility

Web Site

entry - 18 years and Maximum age at - 18 years, Maximum entry - 55 years age at entry - 50 years (Nearest Birthday) www.licindia.com www.birlasunlife.com

SARAL HEALTH PLAN BSLI Saral Health Plan, a comprehensive health insurance plan that gives cover across hospitalization expenses, surgical expenses, critical illness and routine health care expenses.

Asset Allocation:

SECURITIES Equity Money Market Instruments TOTAL

HOLDINGS 80% 20% 100.00%

HOLDINGS

20% Equity Money Market Instruments 80%

4. MONEY BACK PLAN:-

Product Name Company Name Minimum Premium Maximum Premium Minimum Term Maximum Term Minimum Sum Assured

LIC- Profit Plus Plan

Birla Flexi Cash Flow Money Back Plan

Life Insurance Birla Sun Life Insurance Corporation of India Rs.20,000 for Single Premium Rs. 10,000 p.a. Information not Available for Regular Premium Information not Available Information not Available 5 Years 20 Years Regular Premium - 5 x Annual Premium, Single Premium - 1.25 X Single Premium 2.5 times the single premium if age maturity age is 71 Years and above 0 Years 65 Years 10 Years 25 years No Limit

Maximum Sum Assured Minimum age at Entry Maximum age at Entry

1,00,000 13 Years 65 Years

Minimum age at Maturity 18 Years (Completed) No Limit 70 Years (Nearest Maximum age at Maturity 75 Years Birthday) Sum Assured or Fund Sum Assured or the Fund Death Benefit Value Which ever is Value which ever is higher higher Survival Benefit Information not Available Available Maturity Benefit Free Look Period Switching Loan Option Fund Value Fund Value Information not Available 15 Days First 4 Switches in a year 2 Switches in a year are are free free Not Available Not Available

MONEY BACK PLAN Birla Sun Life Insurance Life Companion Money Back Plan is the plan that suits the budget of every individual. Not only has that it also acted as a cushion by giving you regular income at regular intervals in life.

Asset Allocation:

SECURITIES Equity Money Market Instruments TOTAL

HOLDINGS 80% 20% 100.00%

HOLDINGS

25%

Debt Instruments Equity related securities

75%

FINANCIAL STATUS OF BSLI

According to Nani B Javeri, chief executive officer, Birla Sun life Insurance, the strategy of using a ULIP platform has worked well for the company and Birla Sun life will continue to focus on these market-linked products, which are considered to be more transparent than traditional policies.

"ULIPs are capital-efficient, that is, they use relatively less capital and deliver more or less similar margins as other products," he says. ICICI Prudential is the other player for whom linked policies contributed a high percentage - as much as 84 per cent of total business

Chapter 4
Objective of the Study

OBJECTIVE OF STUDY

1) 2)

To study the behavior of consumer about life Insurance To access the awareness of the people about the policies of the sun life.

Chapter 5
Research Methodologies

RESEARCH METHODOLOGY STUDY

Source of Data: - Primary and Secondary data. Population Size: - 250 Sample Size: - 100 Sample Model:-Questionnaire Sampling Technique: - Convenience

Chapter 6
Data Analysis & Interpretation

DATA ANALYSIS AND INTERPRETATION

Q1. Do you have life insurance?

Source of Information No. of consumers

Yes 69

No 31

TABLE 5.1

3% 1

Ys e N o

6% 9

FIGURE: 5.1.1 Interpretation: 69% people have life insurance and 31% have not.

Q2. If yes, then in which company you have?

Source of Information No. of consumers

BSLI 67

LIC 22

Others 11

TABLE 5.2

11%

22%

BSLI LIC Others 67%

FIGURE: 5.1.2 Interpretation: 67% people have life insurance of BSLI, 22% people have life insurance of LIC and 11% people have others life insurance.

Q3. What are the points that attract you toward this company?

Source of Information No. of consumers

Brand image 30

Security of investment 25

Better services provided 20

IRDA approval 25

TABLE 5.3

25%

30% Brand image Security of investment Better services provided IRDA approval

20% 25%

FIGURE: 5.1.3 Interpretation: 30% people attracted by brand image, 25% people attracted by security of investment, 20% people attracted by better services and 25% people attracted by IRDA approval.

Q4. How do you come to know about this company?

Source of

Agent

Friend

Newspaper

T.V

E-

Information No. of consumers

25

10

30

25

Commerce 10

TABLE 5.4

10% 25% Agent 25% 10% Friend Newspaper T.V E-Commerce

30%

FIGURE: 5.1.4 Interpretation: 25% people come to know by agent, 10% people come to know by Friend, 30% people come to know by newspaper, 25% people come to know by T.V And 10% people come to know by E- commerce.

Q5. How you rate the policies provided by your company?

Sources of Information No. of consumers

Very Good 57

Good 36

Neutral 4

Bad 3

Very Bad 0

TABLE 5.5
3% 4% 0%

Very Good Good 36% 57% Neutral Bad Very Bad

FIGURE: 5.1.5 Interpretation: 57% people rate their company policies as a very good, 36% people rate their company policies as a good, 4% people rate their company policies as a neutral, 3% people rate their company policies as a bad and 0% people rate their company policies as a very bad.

Q6. What features you like in the policies of your company?

Sources of Information No. of consumers

Affordable premium 22

Rider benefits 10

Rate of return 37

Income tax benefits 23

Switching 8

TABLE 5.6

8% 22% 23% 10% Affordable Premium Rider benefits Rate of return Income tax benefits Switching

37%

FIGURE: 5.1.6 Interpretation: 22% people like the features of Affordable premium, 10% people like rider benefits, 37% people like rate of return, 23% people like income tax benefits and 8% people like switching in the policies.

Q7. What kind of life insurance you have?

Sources of Information No. of consumers

Children plan 22

Pension plan 20

Health plan 10

Money back plan 48

TABLE 5.7

22% Children Plan 48% 20% Pension Plan Health Plan Money back Plan

10%

FIGURE: 5.1.7 Interpretation: 22% people have life insurance of Children plan, 20% people have life insurance of pension plan, 10% people have life insurance of health plan and 48% people have life insurance of money back plan.

Q8. What are the various services provided by your company except life insurance?

Sources of Information No. of consumers

Alert services 57

Free look services 9

Fund flash 24

Bonus services 10

TABLE 5.8

10%

24% 57%

Alert Services Free look Services Fund flash Bonus Services

9%

FIGURE: 5.1.8

Interpretation: 57% people says that they get free alert services, 9% people says that they get free look services, 24% people says that they get fund flash and 10% people says that they get bonus services from their insurance company.

Q9. Are you satisfied with the services provided by your company?

Sources of Information No. of consumers

Yes 69 TABLE 5.9

No 31

31% Yes No 69%

FIGURE: 5.1.9

Interpretation: 69% people satisfied with the services provided by their company and 31% people not.

Q10. Rank your satisfaction towards the policy provided by your company?

Sources of Information No. of consumers

Very Satisfied 52

Satisfied 35

Neutral 11

Dissatisfied 2

Very Dissatisfied 0

TABLE 5.10

2% 11% 0%

Very Satisfied Satisfied 52% 35% Neutral Dissatisfied Very Dissatisfied

FIGURE: 5.1.10 Interpretation: 52% people are very satisfied, 35% people are satisfied, 11% people are neutral, 2% people are dissatisfied and 0% people are very dissatisfied with their policy.

Q11. Do you want to invest more than in BSLI?

Sources of Information

Yes

No

No. of consumers

69

31

TABLE 5.11

31% Yes No 69%

FIGURE: 5.1.11 Interpretation: 69% people want to invest in BSLI and 31% do not.

Chapter 7
Findings

FINDINGS OF THE STUDY

Findings of the research study are as follows:-

From the survey, we came to know that most of the people are aware about the BIRLA SUN LIFE INSURANCE LIMITED. Most of the people came to know about the LIC from the agents and newspaper media. This shows that other promotional media activities like radio, hoardings and postures are missing which are on high these days.

From the survey we came to know that mostly people are not such aware about the policies offered by BIRLA SUN LIFE INSURANCE LIMITED. From the survey, we came to know that most of the people those who are insured are satisfied with the policies provided by BIRLA SUN LIFE INSURANCE LIMITED. The survey shows that most of the people rate the policies of BIRLA SUN LIFE INSURANCE are very good but not excellent. This means that they want something extra in their policies.

The survey shows that mostly people like low premium allocation charges and rate of return in the policies of BIRLA SUN LIFE INSURANCE LIMITED. From the survey, we came to know that most of the people have reliability in BIRLA SUN LIFE INSURANCE LIMITED. From the survey, we came to know that most of the people are satisfied with the after sales services of the BIRLA SUN LIFE INSURANCE LIMITED. But there were some customers who were saying that they are not getting proper information regarding their policies at right time.

From the survey, we came to know that BIRLA SUN LIFE INSURANCE LIMITED has a very good image among the people. This shows that people believe in brand name of BIRLA SUN LIFE INSURANCE LIMITED.

Chapter 8
SUGGESTIONS AND RECOMENDATIONS

SUGGESTIONS AND RECOMENDATIONS

The suggestion and recommendations are as follows

It is suggested that company need to establish new branches in villages and small cities by this company can move more better There should be cash deposit facility in each and every branch of the company so that customer can get better services There should be limit of financial advisor under agency manager and the limited amount of these advisor can handle it easily The company should also need to begin some small duration and small amount of investment because in INDIA there are many peoples who are working in poor line or below poverty line

The company has to start monthly premium plans to attract the customers They need to make some presentation among the small villages this make people education about insurance sector Their is need to use proper advertisement channels to make a good brand image In this survey I also get that maximum customer changing their mind now they going to prefer BSLI products.

From this survey I also get now BIRLA SUNLIFE INSURANCE having a good brand image in the eyes of customers.

Chapter 9
Limitations

LIMITATIONS OF THE STUDY

Limitations of the study are as follows:1. The preparation and interpretation of data may not be 100% free from errors and may be effected by the respondents biased mindset to some extend. 2. Sampling size of targeted customer is small, so the response may not give true reflections of the mental framework of the population. 3. Judgment/ convenience sampling will be used, so the data may not be of that quality level as obtained by complete enumeration survey which is not possible due to financial and time constraints.

Appendix

APPENDIX QUESTIONNAIRES

Q1- Do you have life insurance? Yes No

Q2- If yes, then in which company you have? BSLI Others Q3- What are the points that attracts you toward this company? Brand image Better services provided Security of investment IRDA approval LIC

Q4- How do you come to know about this company? Agent Newspaper E- commerce Q5- How you rate the policies provided by your company? Very good Neutral Very Bad Good Bad Friend T.V

Q6- What features you like in the policies of your company? Affordable premium Rate of return Switching Rider benefits Income Tax benefits

Q7- What kind of life insurance you have? Children plan Health plan Pension plan Money back plan

Q8-What are the various services provided by your company except life insurance? Alert services Fund flash free look services Bonus services

Q9- Are you satisfied with the services provided by your company? Yes No

Q10- Rank your satisfaction towards the policy provided by your company? Very Satisfied Neutral Very Dissatisfied Q11. Do you want to invest more than in BSLI? Yes No Satisfied Dissatisfied

BIBLIOGRAPHY

http://www.adityabirla.com/our_companies/joint_ventures/birlasun life_insurance.htm http://en.wikipedia.org/wiki/Consumer_behaviour http://www.iloveindia.com/finance/insurance/companies/birla-sun-life-insurance.html] http://insurance.birlasunlife.com/Portals/0/mediakit/PressArchive/2008/july/BSLI_Market_ Gain_090708.html http://freepress.in/insurance/market-share-of-all-life-insurance-companies-india/ http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_Aboutus/Compan y_Profile/abtus_comprofile.aspx

http://www.birlasunlife.com/birlasunlife/index.aspx http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individu al/Protection/bsl_termplan.aspx

http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individu al/Savings/bsl_goldplus_II.aspx

http://www.cs.indiana.edu/mit.research.how.to/section3.12.html http://encyclopedia.thefreedictionary.com/Research+methodology http://www.slideshare.net/arjun.ramesh86/consumer-behaviour-presentation-796587

http://en.wikipedia.org/wiki/History_of_insurance

Books: 1. Philip kottler, Marketing Management 2. Rajan saxena. Marketing Management 3. Research Methodology by Kothari.