A Project Reporrt on Training BIRLA SUNLIFE

8/9/2019 A Project Reporrt on Training BIRLA SUNLIFE

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OBJECTIVE

To determine and analyze the Market Potential of the Birla Sun Life Insurance

Company in Lucknow City.

To study the overall scenario currently prevailing in the market, namely, the per

capital income, purchasing power, occupation, literacy rate, etc.

To study and determine the competitor position in the market.

To do a performance evaluation of Birla Sun Life Insurance products in

comparison on with other insurance companies


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INTRODUCTION

Life Insurance

Life insurance (Life Assurance in British English) is a type of insurance. As in all

insurance, the insured transfers a risk to the insurer. The insured pays a premium and

receives a policy in exchange. The risk assumed by the insurer is the risk of death of the

insured.

How life insurance works

There are three parties in a life insurance transaction; the insurer, the insured, and the

owner of the policy (policyholder), although the owner and the insured are often the

same person. For example, if John Smith buys a policy on his own life, he is both the

owner and the insured. But if Mary Smith, his wife, buys a policy on John's life, she is

the owner and he is the insured. The owner of the policy is called the grantee (he or she

will be the person who will pay for the policy). Another important person involved is the

beneficiary. The beneficiary is the person or persons who will receive the policy

proceeds upon the death of the insured. The beneficiary is not a party to the policy, but is

designated by the owner, who may change the beneficiary unless the policy has an

irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary

must agree to changes in beneficiary, policy assignment, or borrowing of cash value.

The policy, like all insurance policies, is a legal contract specifying the terms and

conditions of the risk assumed. Special provisions apply, including a suicide clause

wherein the policy becomes null if the insured commits suicide within a specified time

for the policy date (usually two years). Any misrepresentation by the owner or insured on

the application is also grounds for nullification. Most contracts have a contestability

period, also usually a two-year period; if the insured dies within this period, the insurer

has a legal right to contest the claim and request additional information before deciding

to pay or deny the claim.

The face amount of the policy is normally the amount paid when the policy matures,

although policies can provide for greater or lesser amounts. The policy matures when the

insured dies or reaches a specified age. The most common reason to buy a life insurance

policy is to protect the financial interests of the owner of the policy in the event of the
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insured's demise. The insurance proceeds would pay for funeral and other death costs or

be invested to provide income replacing the deceased's wages. Other reasons include

estate planning and retirement. The owner (if not the insured) must have an insurable

interest in the insured, i.e. a legitimate reason for insuring another persons life. The

insurer (the life insurance company) calculates the policy prices with an intent to recover

claims to be paid and administrative costs, and to make a profit. The cost of insurance is

determined using mortality tables calculated by actuaries. Actuaries are professionals

who use actuarial science which is based in mathematics (primarily probability and

statistics). Mortality tables are statistically based tables showing average life

expectancies. The three main variables in a mortality table are age, gender, and use of

tobacco. The mortality tables provide a baseline for the cost of insurance. In practice,

these mortality tables are used in conjunction with the health and family history of the

individual applying for a policy in order to determine premiums and insurability. The

current mortality table being used by life insurance companies in the United States and

their regulators was calculated during the 1980s. There is currently a measure being

pushed to update the mortality tables by 2008.

The current mortality table assumes that roughly 2 in 1,000 people aged 25 will die

during the term of coverage. This number rises roughly quadratic ally to about 25 in

1,000 people for those aged 65. So in a group of one thousand 25 year old males with a

$100,000 policy, a life insurance company would have to, at the minimum, collect $200

a year from each of the thousand people to cover the expected claims. The insurance

company receives the premiums from the policy owner and invests them to create a pool

of money from which to pay claims, and finance the insurance company's operations.

Contrary to popular belief, the majority of the money that insurance companies make

comes directly from premiums paid, as money gained through investment of premiumswill never, in even the most ideal market conditions, vest enough money per year to pay

out claims. Rates charged for life insurance increase with the insured's age because,

statistically, a people are more likely to die as they get older.

Since adverse selection can have a negative impact on the financial results of the insurer,

the insurer investigates each proposed insured (unless the policy is below a company-

established minimum amount) beginning with the application, which becomes part of the

policy. Group Insurance policies are an exception. This investigation and resulting
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evaluation of the risk is called underwriting. Health and lifestyle questions are asked, and

the answers are dutifully recorded. Certain responses by the insured will be given further

investigation. Life insurance companies in the United States support The Medical

Information Bureau, which is a clearinghouse of medical information on all persons who

have ever applied for life insurance. As part of the application, the insurer receives

permission to obtain information from the proposed insured's physicians. Life insurance

companies are never required by law to underwrite or to provide coverage on anyone.

They alone determine insurability, and some people, for their own health or lifestyle

reasons, are uninsurable. The policy can be declined (turned down) or rated. Rating

means increasing the premiums to provide for additional risks relative to that particular

insured.

Many companies use four general health categories for those evaluated for a life

insurance policy. These categories are Preferred Best, Preferred, Standard, and Tobacco.

Preferred Best means that the proposed insured has no adverse medical history, is not

under medication for any condition, and his family (immediate and extended) have no

history of early cancer, diabetes, or other conditions. Preferred is like Preferred Best, but

it allows that the proposed insured is currently under medication for the condition and

may have some family history. Most people are in the Standard category. Profession,

travel, and lifestyle also factor into not only which category the proposed insured falls,

but also whether the proposed insured will be denied a policy. For example, a person

who would otherwise be in the Preferred Best category will be denied a policy if he or

she travels to a high risk country.

Upon the death of the insured, the insurer will require acceptable proof of death before

paying the claim. The normal minimum proof is a death certificate and the insurer's

claim form completed, signed, and often notarized. If the insured's death was suspicious

and the policy amount warrants it, the insurer may investigate the circumstances

surrounding the death, before deciding whether there is a legal obligation to pay the

claim. Proceeds from the policy may be paid in a lump sum or as an annuity paid over

time in regular recurring payments for either for the life of a specified person or a

specified time period.
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COMPANY PROFILE

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya

Birla Group and Sun Life Financial Inc., a leading international financial services

organisation. The local knowledge of the Aditya Birla Group combined with the

expertise of Sun Life Financial Inc., offers a formidable value proposition to customers.

Sun Life Financial and its partners today have operations in key markets worldwide,

including India, Canada, the United States, the United Kingdom, Hong Kong,

Philippines, Japan, Indonesia, China and Bermuda. Sun Life Financial Inc. had assets

under management of over US$ 386.82 billion, as on 31 March 2007. Sun Life Financial

Inc. is a leading performer in the life insurance market in Canada.

BSLI in its five successful years of operations has contributed significantly to the growth

and development of the life insurance industry in India. It pioneered the launch of Unit

Linked Life Insurance plans amongst the private players in India. It was the first player

in the industry to sell its policies through the Bank assurance route and through the

internet. It was also the first private sector player to introduce a pure term plan in the

Indian market. This was supported by sales practices, which brought a degree of

transparency that was entirely new to the market. The process of getting sales

illustrations signed by customers, offering a free look period on all policies, which are

now industry standards were introduced by BSLI.

Being a customer centric company, BSLI has invested heavily in technology to build

world class processing capabilities. BSLI has covered more than one and a half million

lives since inception and its customer base is spread across 100 cities in India. All this

has assisted the company in cementing its place amongst the leaders in the industry interms of new business premium income. Birla Sun Life Insurance (BSLI), one of the

leading private life insurers in India today announced the inimitable achiever, cricketer

Kapil Dev as their corporate brand ambassador. The cricketing supremo will be

endorsing BSLI in all its marketing initiatives. Birla Sun Life Insurance is a value-

driven brand which has a national brand recall of 70 per cent. The objective of

appointing a brand ambassador is to grow its brand recall as it goes national in its

distribution reach and fuel business growth. As a brand ambassador, Kapil Dev will play


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a key role in the brand and product marketing and promotional activities. BSLI has

always used an integrated marketing approach, which will be strengthened further.

Commenting on the association with Kapil Dev, Mr. S. K. Mitra, Director, Financial

Services, Aditya Birla Group and currently incharge of BSLI expressed, "The Birla Sun

Life Insurance business distribution network is national in nature covering more than

1000 points across the country .We have made our entry in several tier I and tier II

towns. It is therefore very important for the brand to connect at the grassroot level and

create trust. We believe that our association with Kapil Dev as our brand ambassador

will help us create this connect in a shorter period of time. We therefore now have two

strong connects our parent brand Birla and our brand ambassador Kapil Dev".

Kapil Dev, also known as the Haryana Hurricane, was born on 6 January 1959 in

Chandigarh. He played his first competitive game of cricket at the age of 13 years and

made his test debut on 16 October 1978 at Faisalabad against Pakistan. Kapil Dev

remained India's top strike bowler for almost 15 years. His extraordinary test match

figures of more than 5000 runs and 434 wickets along with 64 catches show that he was

a world class cricketer and an all-rounder. He has raised the mantle of India to sporting

glory by winning us the World Cup.

In a study conducted by BSLI, Kapil Dev connected extremely well with the life

insurance category and had high acceptance by the masses. Our survey suggests that he

is seen as a very good fit for the BSLI brand. He is very much loved and respected by a

vast majority of the population.

On 26 November 2006, Birla Sun Life was host the annual golf tournament at the

Chembur Golf Club in Mumbai where Kapil Dev was participate.

About Birla Sun Life Insurance

Birla Sun Life Insurance Company Limited is a joint venture between the Aditya Birla

Group, one of the largest business houses in India and Sun Life Financial Inc., a leading

international financial services organisation. The local knowledge of the Aditya Birla

Group combined with the expertise of Sun Life Financial Inc., offers a formidable

protection for your future.


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Birla Sun Life Insurance (BSLI), in its five successful years of operations, has

contributed significantly to the growth and development of the life insurance industry in

India. It pioneered the launch of unit linked life insurance plans amongst the private

players in India. It was the first player in the industry to sell its policies through the banc

assurance route and through the internet. It was the first private sector player to introduce

a pure term plan in the Indian market. This was supported by sales practices which

brought a degree of transparency that was entirely new to the market. The process of

getting sales illustrations signed by customers and offering a free look period on all

policies, which are now industry standards, were introduced by BSLI. Being a customer-

centric company, BSLI has invested heavily in technology to build world class

processing capabilities. BSLI has covered more than a million lives since inception and

its customer base is spread across more than 1000 towns and cities in India. All this has

assisted the company in cementing its place amongst the leaders in the industry in terms

of new business premium income. The company's current capital base is Rs.520 crore.

About the Aditya Birla Group

The Aditya Birla Group has a turnover close to Rs.38,000 crore (as on 31 March 2008)

and is one of the largest business houses in India. It enjoys a leadership position in all the

sectors in which it operates. With over 75 business units spanning the South East Asian

belt, Africa, Canada and the UK among others, it is reckoned as India's first

multinational corporation. The group is anchored by 72,000 employees and has seven

lakh shareholders, with a market capitalization of Rs.53,400 crore.

About Sun Life Financial Inc.

Sun Life Financial Inc. is a leading international financial services organisation

providing a diverse range of wealth accumulation and protection products and services to

individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial

and its partners today have operations in key markets worldwide, including Canada, the

United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India,

China and Bermuda. As of 31 March 2008, the Sun Life Financial group of companies

had total assets under management of US$ 343 billion.


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Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine

(PSE) stock exchanges under ticker symbol "SLF".

VISION

To be a world class provider of financial security to individuals and corporates and to be

amongst the top three private sector life insurance companies in India

MISSION

To be the first preference of our customers by providing innovative, need based life

insurance and retirement solutions to individuals as well as corporates. These solutions

will be made available by well-trained professionals through a multi channel distribution

network and superior technology.

Our endeavour will be to provide constant value addition to customers throughout their

relationship with us, within the regulatory framework. We will provide career

development opportunities to our employees and the highest possible returns to our

shareholders


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SWOT ANALYSIS

STRENGTH :

Mult i -channel d ist r ibution and one of the largest d ist r ibution

networks in India.

Implementing Six-Sigma process.

Customer centric products and services.

Superior investment and risk management framework

1 Million Policies sold within 3 and half years.

Company has maximum number of MDRT a s w e l l a s g o o d

number ofHNI advisors.

Training process of the company is very strong.

Different plan for different peoples

A cc or di ng t o t he c ha ng e i n s ur ro un di ng e nv ir on me nt l ik e

changes in customer requirement.

WEAKNESS:

COMPANY does not penetrate on the rural market at a time.

There is no plan for the low income group.

Fees for the advisor is high than the other company.

OPPORTUNITY:

Insurance market is very big, where company can expand i ts horizon ininsurance industry .

T hough good inves tment and insurance i t i s easy to top Ind ian

customers.

The huge insurance market (77%) is left so company has

opportunity to expand our products.

To associate with the more number of HNI.


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THREATS:

OLD HABITS DIE HARD: Its still difficult task to win the confidence of

public towards private company.

The company is facing major threats from LIC -which is an only

government company.

P lans for a l l income groups i s not avai lable which can create adverse

effect later on the market share of the company.

KEY PEOPLES OF ORGANISATION

BOARD OF DIRECTORS

Mr. Kumar M Birla

Mr. Donald A Stewart,

Mr. Bishwanath N Puranmalka

Mr. Ajay SrinivasanMr. Gary M Comerford

Mr. Suresh N Talwar

Mr. Gian P Gupta

His Highness Maharaja G Singh

Mr. Stephan Rajotte

Dr. Bharat K Singh

INVESTMENT COMMITTEE

Mr. B. N. Puranmalka

Mr. Eugene Lundrigan

Mr. Ajay Srinivasan

Mr. Vikram Mehmi

Mr. Mayank Bathwal


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Mr. Fabien Jeudy

Mr. Vikram Kotak

Ms. Keerti Gupta

Management Team


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DETAILS OF PRODUCTS

Mr. Vikram Mehmi

President & Chief Executive

Officer

Mr. Mayank Bathwal

Chief Financial Officer

Mr. Mario Braganza

Chief Operating Officer

Mr. E.N. Goveia

Head - Direct Sales Force

Mr. Amit Punchhi

Senior Vice President - Third

Party Distribution

Mr. Bhavesh Sanghvi

Head - Group Life &

Pensions

Mr. Snehal Shah

Senior Vice President -

Operations

Ms. Anjana Grewal

Senior Vice President -

Marketing &

Communications

Mr. Rajesh Bhojani

Senior Vice President - DSF

Expansion

Mr. K.H. Venkatachalam

Vice President - Human

Resource

Mr. Fabien Jeudy

Vice President, Chief &

Appointed Actuary

Mr. Lalit Vermani

Vice President - Compliance

Mr. Melvyn D'souza

Vice President - Risk

Management and Internal

Audit

Mr. Vikram Kotak

Vice President - Investments

Mr. Bhalachandra Nayak

Vice President - Strategy


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Individual Life


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Protection

Birla Sun Life Term Plan

Premium Back Term Plan

Saving

Birla Sun Life Insurance Gold-Plus

Supreme Life

Dream Plan

Classic Life Premier

Simply Life

Prime Life Premier

Prime Life

Life Companion

Flexi Cash Flow

Flexi Save Plus

Flexi Life Line

Single Premium Bond

Retirement

Flexi Secure Life Retirement Plan II

Children

Children's Dream Plan
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BSLI offers LifeGuard - a se t of pure protec t ion plans . Choose f rom

amongst three different product structures to insure your life and provide

total security to your family, at a very affordable cost.

Level Term Assurance with return of premium

On death the entire sum assured will be paid.

On maturity, all the premiums paid will be returned.

Level Term Assurance without return of premium


No survival or maturity benefits.

You can a lso enhance the above two pol ic ies by add ing Accident &

Disability Benefit Riderand Waiver of Premium Rider (WOP).

Level Term Assurance - Single premium:


No survival or maturity benefits

Savings Plans

BSLI offers a variety of policies that give you the benefi ts of protect ion

and the opportunity to save for important assets or events, l ike a home, a

car or a wedding.

A regular p remium uni t- linked insurance p lan w ith an assurance o f

Capital Guarantee# with the added advantage of flexible liquidity option.

An ideal plan for long term planning with the benefit of liquidity.
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The key features of the plan are:

Flexibi l ity to choose a specific level of protect ion (Sum Assured),

based on a multiple of the annual premium. You can also choose the

term of the plan.

At the end o f the t e rm, the h igher o f the va lue o f un i t s o r the

guaranteed value* is paid. On death, Sum Assured along with the

higher of value of units or the guaranteed value is payable.

Facil i ty to make withdrawals from the 6th policy year onwards

t i l l the end of the policy term. Every year withdraw up to 10% of

the value of units.

Addi t ional credi ts payable as a percentage of the in it ial annual

premium are paid along with the death or maturity benefit .

Additional insurance for 10 years after the maturity, for an amount

of 50% of the Sum Assured.

Flexibi l ity to make addit ional investment with the help of the top-

up facility.

Flexibility to increase / decrease your annual premium amount

Facility of Automatic Premium Payment- With this facility you can

take a temporary break from premium payment. **

Total transparency with the premium allocations, and other charges

declared upfront.

The guaranteed value of the unit fund is the value of al l invested

premiums (premiums net of al l charges) along with the declared

bonus interests.

* * W it h A ut om at ic P re mi um P ay me nt f ac il it y, y ou c an a va il a

temporary break from premium payment for a maximum of 1 year. This

faci l i ty is available once if the premium paying term is less than 15

years and twice, if i t is 15 years or more.

You can a lso enhance your pol icy by adding Accident & Disabil i ty

Benefit Rider, Waiver of Premium Riderand Critical Illness Rider.
http://www.iciciprulife.com/ipru/riders.jsp#chttp://www.iciciprulife.com/ipru/riders.jsp#chttp://www.iciciprulife.com/ipru/riders.jsp#fhttp://www.iciciprulife.com/ipru/riders.jsp#ahttp://www.iciciprulife.com/ipru/riders.jsp#chttp://www.iciciprulife.com/ipru/riders.jsp#chttp://www.iciciprulife.com/ipru/riders.jsp#fhttp://www.iciciprulife.com/ipru/riders.jsp#a


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A regular p remium uni t- linked insurance p lan w ith an assurance o f

C ap it al G ua ra nt ee # An i de al p la n f or y ou r l on g- te rm s av in gs a nd

protection requirement.

The key features of the plan are :

F le xi bi li ty t o c ho os e a s pe ci fi c l ev el o f p ro te ct io n (Sum

Assured) , based on a mul t ip le of the annual premium. You can a lso

choose the term of the plan.

At the end of the term, the h igher of the value of uni ts or the

guaranteed value* i s pa id . On death , Sum Assured a long wi th the

higher of value of units or the guaranteed value is payable

Additional credits payable as a percentage of the ini t ial annual


Addit iona l insurance for 10 yea rs a ft er the matur ity, for an

amount of 50% of the Sum Assured.

Flexibi l i ty to make addit ional investment with the help of the

top-up facility.


Facili ty of Automatic Premium Payment- With this faci li ty you

can take a temporary breakfrom premium payment.

Total t ransparency wi th the premium al locat ions , and other

charges declared upfront.

T he guaran teed va lue o f the un i t fund i s the va lue o f a l l i nves ted

premiums (premiums net of all charges) along with the declared bonus

interests.

With Automatic Premium Payment facility, you can avail a temporary

break from premium payment for a maximum of 1 year. This facility is

available once if the premium paying term is less than 15 years and

twice, if i t is 15 years or more.


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The capital guarantee is applicable only on the invested premium and

the declared bonus interests.

You can a lso enhance your pol icy by add ing Acc iden t & Disab il ity

Benefit Rider, Waiver of Premium Rider and Critical Illness Rider.

A unit - linked insurance plan wi th an assurance of Capi tal Guarantee

which offers you the benefit of a limited premium payment term. An ideal

plan for protect ion with wealth creat ion that offers the f lexibi l i ty of a

limited premium paying term.

Flexibility to choose a premium payment term of 5, 7 or 10 years for a

maturity term of 10, 15 or 20 years respectively.

Flexibi l ity to choose a speci fic level of protect ion (Sum Assured) ,

based on a multiple of the annual premium.

At the end of the term (maturi ty) , the higher of the value of units or

the guaranteed value* is paid. On death, Sum Assured along with the

higher of value of units or the guaranteed value is payable.

Addit iona l c redi ts payab le as a percentage o f the ini ti al annual


Facility to make withdrawals from the 6th policy year onwards till the

end of the policy term. Every year withdraw up to 10% of the value of

units

Flexibi l i ty to make addit ional investment with the help of the top-up

facility.


Total t ransparency with the premium allocat ions, and other charges

declared upfront.

T he guaran teed va lue o f the un i t fund i s the va lue o f a l l i nves ted

premiums (premiums net of all charges) along with the declared bonus

interests.


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The capital guarantee is applicable only on the invested premium and

the declared bonus interests.

You can a lso enhance your pol icy by add ing Acc iden t & Disab il ity

Benefit Rider and Critical Illness Rider.

Presenting Premier Life The Preferred plan for the Preferred Customer.

The key features of the plan are:

Limited premium payment option: Choose from among a 3, 5, 7 or 10

year premium paying term.

Choice of sum assured: Choose a sum assured, which i s a minimum

mu lti pl e o f 1 a nd a max imu m mu lt ip le o f 2 5 ti mes th e a nn ua l

contribution.

Additional allocation of units on a periodic basis.

Facility to top-up your investment any time you have surplus funds.

Choose from among four funds, based on your investment object iveand risk appetite.

Choice to switch between investments options (4 free switches every

policy year).

Flexibility to decrease your sum assured.

Add-on riders to protect you against any eventuality.

Loans against the policy.

You can a lso enhance your pol icy by add ing Critical I l lness Rider,

Accident & Disability Benefit Rider.


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Presenting Life Time unit linked plans that meets your changing needs over a

lifetime. These solutions have been developed to meet your savings, protection and

investment needs at every stage in life.

Protection

C ho os e a s pe ci fi ed l ev el o f p ro te ct io n ( av ai la bl e o nl y w it h

LifeTime).

Two levels of Sum Assured to choose f rom (avai lable only wi th

LifeTime II).

Flexibility to increase or decrease your sum assured .

Add-on riders to protect you against any eventuality.


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Savings

Flexibility to increase or decrease your contribution.

Facil i ty of Premium Holiday, wherein the policy continues even if

the re i s a t empora ry b reak in the payment o f annua l con tr ibut ion

(available only with Life Time).

Fac il ity o f Automat ic Cover Continuance , where in the pol icy

continues even if there is a temporary break in the payment of annual

contribution

Facility to top-up your investment any time you have surplus funds.

Additional allocation of units on a periodic basis.

Loans against the policy.

Investment:

Choose from among four funds, based on your investment object ive

and risk appetite.

Choice to switch between investments options (4 free switches every

policy year).

You can also enhance your policy by adding Critical Illness Rider, Major

Surgical Assistance Rider, Accident & Disability Benefit Rider, Accident

Benef it R ider (avai lable only wi th L ife T ime) and Waiver of Premium

Rider

.

An insurance plan that g ives added protect ion, savings and mult iple

options, all in one!

The flexibility to choose your premium contribution.

The flexibility to choose amongst three levels of cover (in the form of

sum assured) for the same amount of total annual contribution.


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The flexibi l i ty of shif t ing between the three levels of cover, as you

require.

The flexibility of receiving your maturity proceeds as a lump sum or in

equal annual installments over 3 or 5 years.

You can also enhance your policy by adding Variety of Riders

An insurance plan that gives you added protect ion, savings, mult iple

options, plus the power of liquidity.

The flexibility to choose your premium contribution.

The flexibility to choose amongst three levels of cover (in the form of

sum assured) for the same amount of total annual contribution.

The flexibi l i ty of shif t ing between the three levels of cover, as you

require.

The flexibility of receiving your maturity proceeds as a lump sum or in

equal annual installments over 3 or 5 years. The flexibil i ty of withdrawing up to 10% of the accumulated value of

your policy, after the first 5 policy years.

You can also enhance your policy by adding Variety of Riders

An ideal plan for those who want to accumulate funds on a regular basis

while enjoying insurance protection.

Guaranteed Benefits: G ua ra nt ee d a dd it io ns @ 3 .5 % o f t he S um

Assured, compounded annually for the first 4 years of the policy.

Extended Life Cover: A n e xt en de d c ov er f or 5 y ea rs a ft er t he

maturity of the policy, for 50% of the sum assured, at no extra cost.
http://www.iciciprulife.com/ipru/riders.jsphttp://www.iciciprulife.com/ipru/riders.jsphttp://www.iciciprulife.com/ipru/riders.jsphttp://www.iciciprulife.com/ipru/riders.jsp


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Maturity Benefit: At the end of the term, the policyholder receives

the full sum assured, the guaranteed additions and the vested bonuses.

Death Benefit : T he b en ef ic ia ry r ec ei ve s t he s um a ss ur ed , t he

guaranteed addi t ions and the ves ted bonuses incase the l i fe assuredwere to meet with an unfortunate event. In case the life assured is aged

7 years or less, the basic premium paid will be returned.

You can also enhance your policy by adding Critical Illness Rider, Major

Surgical Assistance Rider, Accident & Disabil i ty Benefi t Rider , Waiver

of Premium Rider (WOP)

Child Plans

As a responsible parent, you wil l always str ive to ensure a

hassle- free , success fu l l if e for your chi ld . However , l if e i s ful l o f

Uncertainties and even the best-laid plans can go wrong. Heres how you

can give your chi ld a 100% safe and assured tomorrow, whatever the

uncertainties. Smart Kid is especially designed to provide flexibility and

s af eg ua rd y ou r c hi ld s f ut ur e e du ca ti on a nd l if es ty le , t ak in g a ll

possibilities into account. Choose from amongst a basket of 4 plans:

Smart Kid regular premium

Smart Kid unit-linked regular premium

Smart Kid unit-linked regular premium II

Smart Kid unit-linked single premium II
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All these plans offer you:

Financial Benefits: Regular payments a t c r it ica l s tages in your

c hi ld s l if e, l ik e B oa rd e xa mi na ti on s, G ra du at io n a nd P os t-

graduation.

Total peace of mind, even if you are not around

Sum Assured is paid immediately: Ensures that your loved ones

stay financially secure, even in your absence.

All future premiums are waived: Ensuring that your family is not

financially burdened in your absence.

Policy benefits continue: The educational benefi ts of the policy

cont inue , ensur ing that your chi ld can rea l ize h is or her dreams

without any hassles.

Development Allowance: Smart Kid guarantees regular income to

secure your childs educational career and also ensures his or her

a ll -round development , for a nominal add it iona l amount. T he

Income Benefit Rider takes care of this through an annual payment

of 10% of the sum assured, to your child, t i l l the maturi ty of the

p ol ic y, i n t he u nf or tu na te e ve nt o f t he d ea th o f t he p ar en t.

Al l S mar tKi d p la ns c an b e e nh an ce d wi th th e Accident &

Disability Benefit Rider and Income Benefit Rider. You can also

an Accident Benefit Rider to a SmartKid Regular Premium policy,

and a Waiver of Premium Rider (WOP) to SmartKid unit-linked

regular premium policy.

Investment Plans
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Life Link II is a unique plan that combines the security of a

l i fe insurance pol icy wi th the oppor tuni ty of enjoy ing high re turns on

y ou r i nv es tm en ts , w it ho ut t he m ar ke t r is ks c om pr om is in g o n t he

protection of your family!

Death Benefit: The Sum Assured under the product has 2 options, either

500% of the initial premium or 105% of the initial premium. In the event

of an unfortunate death, the beneficiary wil l receive higher of the value

of units or the initial death benefit , less any withdrawals.

Withdrawal Benef it : O ne c an m ak e p ar ti al w it hd ra wa ls f ro m t he

accumulated value of the policy after completion of one policy year.

Flexibility: Choose f rom four fund opt ions , based on your inves tment

object ive and r i sk appet i te . I f a t a la ter s tage your f inancia l pr ior i t ies

change, you can switch between the various fund options, absolutely free,

4 times a year.

Retirement Plans

L ife E xpec tancy has been r is ing rap id ly and

today you can expect to live longer than your earlier

genera t ions . For you, th is increase wi l l mean a longer re t i rement l i fe ,

s t re tching in to a couple of decades . BSLI Ret i rement Solutions thatcombine the bes t o f insurance and inves tment. T hese solut ions a re

developed to ensure your peace of mind for the years to come.

1. Why plan for retirement?

2. How much should I set aside for retirement?

3. The impact of inflation on your retirement savings

4. Why plan early?

5. About Annuities
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An integra ted basket of employee benef it s solut ions that of fer

incomparable flexible benefits.

Sound investment management that focuses on safety, stability and

profitability of the portfolio. Personalized f inancial planning for your employee that takes care

of his/her changing financial needs at every stage of life.

Quali ty service ini t iat ives and transparency across al l operat ions,

promising superlative operational efficiency.

Group Term Assurance : Helps provide affordable cover to members of

a group.

Group Gratuity Plan : Helps employers fund their s tatutory gratui ty

obligation in a flexible and hassle-free manner.

Group Superannuation Plan : A flexible scheme (defined benefi t and

defined contribution) to provide a retirement kitty for each member of the

group.

Group Term Assurance:

BSLI flexible group term solution helps provide affordable cover to

members of a group. The cover could be uniform or bas ed on

des igna tion /rank o r a mul tiple o f sal ary, and can be extended to a ll

employees between the ages of 18 and 65 years . The benef i t under the

pol icy i s pa id on the event of the members death to the benef ic iary

nominated by the member. I t is a one-year renewable policy where onemaster policy covers all proposed employees comprising the group, with a

minimum group size of 25 persons. New members can join the group and

outgoing members can leave the group a t any point dur ing the pol icy

term.

Highlights include:

Greater convenience for the employees with relaxed underwriting

and medical requirements.
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"Free Cover Limits" with simplified underwriting depending upon

t he n um be r o f e mp lo ye es i n t he g ro up a nd t he l ev el o f c ov er

chosen.

Guaranteed benefit: On dea th dur ing the t erm of the con trac t(while in service) , the sum assured wil l be paid to the beneficiary

of the employee.

Choice of addit ional coverage in form an Accident and Disabil i ty

Benefit Rider and Critical Illness Cover

Premium is viewed as a business expense in the year of payment.

Group Gratuity Plan:

BSLI group gratuity plan helps employers fund their gratuity obligation

i n a s ci en ti fi c m an ne r. E mp lo ye rs c an a va il o f t he t ax b en ef it s a s

applicable to approved gratuity funds. The plan can also be customized to

s tr uc tu re s ch em es t ha t c an p ro vi de b en ef it s b ey on d t he s ta tu to ry

obligations.

Highlights include:

Wider choice of investments with Market Linked Plans - to meet

the diverse f inancial goals . We offer 4 investment options (short-

term debt , debt and balanced and capi tal guarantee plan) where

investments will be made in accordance with the fund objectives.

Transparency through Daily disclosure of Unit Value and regular

disclosure of the portfolio of each of the investment option

Flexibility through switching and contribution redirection option to

enable reshuffling of portfolio

Bundled Life Cover greater value to the employee by packaging

l i fe insurance cover wi th the gratuity, wi th minimal amount of

underwriting.

Actuarial services to provide a scientific estimation of the gratuity

liability.


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Low expl ic i t charge s tructure w it h t he c on di ti on s f or e xi t

specified upfront.

Enhanced service levels through faster claim set t lement, easier

access to information and regular statements. Complet e end t o end solut ion in t he l egal and regulat ory

approval process for scheme set up or transfer

Employee Benefits:

The contribution made by the employer is not included in the value

of taxable perquisites in the hands of the employee.

Gratuity received up to Rs 350000 is exempt from Income tax under

Sec 10(10)

Employer Benefits:

Annual contribution up to 8.33% of salary bill in a financial year is

al lowed a deduction for the purpose of computat ion of profi ts and

gains of business.

Contribution towards past service liability is allowed as deduction

as per the Income Tax rules.

Group Superannuation Plan:

BSLI Superannuation Scheme (for both Defined Benefi t and Defined

Contr ibution funds) offers substant ial benef it s to both employers and

e mp lo ye es . T he e mp lo ye r a nd e mp lo ye e c an a va il o f t ax b en ef it s

applicable to an approved superannuation trust. The scheme wil l provide

for a retirement fund for each participating employee. An employee would

b e a bl e t o c ho os e f ro m v ar io us a nn ui ty o pt io ns o r o pt f or p ar ti al

commutation of corpus at retirement.

Highlights include:

Wider choice of investments with Market Linked Plans - to meet thediverse f inancia l goals . We offer 5 inves tment opt ions (short-term


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BSLI offers the following features:

Life Cover and Savings

Regular Premiums

Age at entry 18 - 45 Yrs

Premium Mode Half Yearly / Yearly

Term 5,10,15 Yrs

Sum Assured Rs.5,000 -20,000

Premium / Year Rs. 507 - 553 ( SA: Rs.10,000)

Maturity/Death benefit Sum Assured

BSLI - Regular Premium:

BSLI is a regular premium policy with the following features:

Individual policy

Only Life cover

Term - 3 & 5 Yrs

Age independent premium

Age at entry 18 - 45 Yrs

Sum Assured Single

Premium / Year Rs 50 200

Maturity/Death benefit Rs.5,000 - 20,000

Death Benefit Sum Assured

Plans for NRIs

NRI Plans:

Being away from India doesn' t mean you have to compromise the safety

and secur i ty of your loved ones . In fac t , your savings f rom your t ime

overseas can be easily canalized to meet your family's needs - now and in

the future . So, whether i t s your dream to re t i re in your hometown; to


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secure funds for your children's education; or to build assets, BSLI has a

range of solutions that can be customized to meet your needs.


34/79

IRDA

(INDIAN REGULATORY DEVLOPMENT AUTHORITY)

IRDA:

The insurance sector has been opened up in India, as there was an urgent need.

The international experience indicates those country with a liberalized insurance sector

have witnessed a rapid growth in premium volumes enhancing the domestic saving rate.

This happened in China, Malaysia and Singapore where a competitive market has led

to improvement in Services and quicker settlement of claims. It is also important to note

that competition will bring about advancement in information, communication and

technology. And rightly therefore a decision was taken by the Government of India to

open up Insurance sector. The establishment ofIRDA in the month of April 2000 has

been important development in this direction, making the end of monopoly in the

insurance sector.

WHY INSURANCE IN INDIA:

Only 22% of the insurance population has been extended cover. Market

penetration is low and the potential to exploit is high.

Insurance premium per capita is very low.

Lack of comprehensive social system benefit and welfare means that demand for

pension products is high.

Huge middle class of approximately 300 Million. Existing insurance company score low on customer service front.

The insurance market registered growth in the Asian region even though Indias share in

global insurance is less than 0.5% (1988) as compared to USA (24.2%) and Japan (21%).

Studies have reveled that in an emerging market, as disposable income rises, Insurance

premiums as a ratio of GDP shoots up. The confederation of Indian Industry projected a

growth of Life Insurance premiums from Rs. 350 Billion at present to Rs.140 Billion.


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The growth of non-life insurance premium is expected to increase from 75 billion to 375

billion. Out of which, only 10% is tapped by the existing insurer.

Insurance even more than banking is a volume game. A very exclusive approach

in view is unlikely to provide meaningful numbers. Currently, insurance is bought for the

purpose of tax-benefits. A higher percentage of business is in the rural market. The share

of rural new business insurance total new business is 55% in terms of policies and 47%

in terms of sum assured. However, this needs to be viewed in the light of some recent

issues that have been raised regarding as to what constitutes the rural market. Therefore,

private insurers will be best served by middle market approach, targeting the customer

segments that are presently unexploited.

How many Indians are aware that LIC has more than 60Products and GIC has

more than 180Products? Not only there is a reduction in the premiums of Life Insurance

products have long overdue since Indian morality rate has decreased three folds in the

last 50years. There is also scope to increase the yield on life insurance policies (presently

6%) with proper risk management in place.

It is been debated that insurance business does not produce profit in the first five

years cross subsidization is a feature of Indian market. Even the first portfolio vote that is

considered profitable, cross subsidizes other departments. Tariffs reduction is likely to

reduce profits; further insurers have to institute proper claims management progress in

order to extract efficiencies. At present life insurance business in the country is taxed at

12.5% of the profit in financial year. The government is soon to present a new model of

taxing life insurance companies at international rates.

New entrants should be well advised to look ahead to the stage where brandstrength will be a competitive advantage and sketch their alliances accordingly. In fact,

we believe that alliance related to distribution rather than to produce or technology will

prove most valuable in the long run.

Banks and financial companies will emerge, as attractive distribution channel for

this insurance trend will be led by two factors, which already apply in other world

market. First Banking food insurance, fund management and other financial services


36/79

companies are being to increase their profitability and provide maximum value to their

customers. Therefore, they are themselves looking for a range of products to distribute.

In other market notably Europe; this has resulted in bank assurance. Bank

entering into the insurance business in India to bank hope to maximize expensive

existing network by selling a range of products more of a loss alliance between insurance

and bank than a formal ownership. Some Indian entrants like ICICI, HDFC and Reliance

hope to ride their existing network and customer bases.

CHANNEL DEVELOPMENT

WHY TO RECRUIT

WHO TO RECRUIT

HOW TO RECRUIT

RECRUITMENT ACTIVITIES

WHAT TO CHECK WHILE WE ARE RECRUITING

ROLE OF ADVISOR

WORKING ENVIRONMENT

DO YOU POSSESS

SUPPORT PACKAGE FOR SCUCCESSFUL ADVISOR

EXTENSIVE TRAINING FOR SUCCESSFUL ADVISOR

EXTENSIVE INVESTMENT IN ADVISOR TRAINING

PAYMENT & BENEFIT COMMISSION STRUCTURE

RECOGNITION PROGRAMS

CAREER PROGRESSION & FUTURE OPPORTUNITIES

WHY TO RECRUIT

There are two aspects of employment in the insurance sector today. One is

Permanent Employment, for sa les , opera tion, IT support , back office

services and So on. We are also offering the other kind of employment

for people to se ll L i fe Insurance they are ca l led L ife Advisors. Or

Financial Advisors. This is a big area of employment.


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Because we are supposed to !!

That the way to do this business.

More recruits, more active advisors, more BDA

WHO TO RECRUIT

Quality Deptt. has given some indicators in terms of what are the common

traits(Q-SCORE) of our successful advisors-

The commonalities were

Age : between 30 -45

Education : graduate

Family Income : above Rs. 2 lacs p.a.

The important fact to remember is that 61% of our RED category

advisors do not fall into any of this category.

This is a broad pointer for us to remember what are the his/her profile

Some other pointer from Quality

Most of the RED category advisors FAILED in the DISC prof i le

which means that DISC is good indicator of chanced of success or

failure

Successful advisors usually have 2 years of work exp. In their current

profession

Small time businessmen / entrepreneurs v. successful profile

Women/Housewives are very successful- however they have not been

sustainable over long periods. They usually have become inactive after

6 7 months o f jo in ing . But t i l l t he t ime they a re work ing , the i r

average WAPI & Productivity is very high compared to others.

People who are new to the city are least probable to do well.

Who to recruit?

High probability of Success Tax/ Financial Consultants, CAS


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Bond / Mutual Fund Agents

LIC Agents Surrogates

Small business owners

Average Profile

Women

Students

VRS / retired Personnel

Avoidable Profiles

New to th e City

Income Profile Approx Rs.1 Lac P.A.

People who do not own their transport

THE MOST SUCCESSFUL PROFILE THE PERSON WHO HAS

BEEN MANAGED WELL BY YOU.

How to Recruit?

Things which you should have while meeting the prospect.

BOP Presenter.

Reward point s booklet OR take a copy o f the catalog f rom the

website show the gifts, a prospect wouldnt understand points, but

will value the gifts.

Advisor Manua l - can show how the manua l can answer many

procedural issues.

Talk about emai l id & tech suppor t the prospect would l ike to

know what all i l l the company give

My Market show 100 show the booklet and stress its importance.

Copy of any cer ti fi ca te MDRT cer ti fi ca tes, Sales Champion

certificate etc to show recognition.


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Insist on doing the BOP presentat ion i t gives a complete picture

of what you have to present & answers a lot of questions.

Stress on d if fe rent things to d if fe rent p ro fi le s change your

proposition as per the customer. Women Rewards, - gift i tems, household goods, gold

Young marketing background career Pinnacle.

Tax/ MF/ LIC Agents Rewards & Recognition, Star Clubs.

CAs foreign trips, preferential treatment in all aspects, dont talk

about commissions, stress on the extras.

S ma ll b us in es sm an / E nt re pr en eu rs s ho w R OE R et ur n o n

Energy, to the earn the same amount of money from your business,

you would be spending much more t ime & energy a lot of capital

from your pocket.

THE POWER RENEWAL COMMISSIONS:

Always, always, always stress on the fact that renewal commissions

ARE THE differentiator from every other sort of business

Spend lot of time on the Commissions structure given in the BOP

T ry t o d o a n e xa mp le i n f ro nt o f t he m t ry in g t o p or tr ay t he

commissions payable for the same amount of business done every

year

THE EARNING CALCULATOR WILL BE OF THE HELP HERE

Recruitment Activities

Each of us should have a mix of

Mass Media Activities - Spray & Pray Lead Generation activities

Ads , Class ified, paper Inserts ,

Pamphlets, Banners

Database cal l ing, cold cal l ing, tele-

cal ling , mai le rs , mass BOPs, f ish


40/79

bowl act ivi ty , Yellow Pages, Trade

Directories etc.

Over the last one year , the response

f rom thi s basket o f act iv it ie s has

gone down drast ical ly , thus forcing

u s t o b e c re at iv e to c re at e o th er

avenues

We need to develop lead generat ion

ac t iv i t i e s more so as to have more

people to touch upon and tel l about

this career opportunity

Activities which have done well with us in the recent past:

Joggers Park

Summer Trainees

Mass BOPs

Database Calling

Lead Generation Activities

Tele Calling set ups

Some more ways on how to recruit:

Database Attack can be done through a trainee.

Cold Calling helps a lot as the respondent does not waste your

time by dilly dallying.

RWA Activities Tambola or children painting competition-

gives real time leads, cost effective per lead.

Look at level MBA colleges for Pinnacle probable.

Source local databases Cable TV Service providers, home

delivery caterers.

Fish Bowl Activity- in high football places.


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Things to check while recruiting:

E NE RGY, E NE RGY always check the per sons energy

levels , as this career is al l about meeting new people, f inding new

prospects and more s o handling rejections

His past / present occupat ion gives t remendous insight in to h is

energy levels

Show him the path in his current environment how insurance selling

can fit in lowers the resistance of time availability

Check his environment his family locality

Check whether he can work on his own

Find out if he is looking for money or career as he can have both

here

Things to check while recruiting:

Always try to meet the person at his residence- check for the locality,

h is household , s tandard of l iv ing, t ry to involve the spouse in the

presentation so that they know what they are getting into

Always check on need for money & a drive to do well in l i fe if he

has been doing well in life, he will make efforts to do well with us

Ask questions about his past, find instances of accomplishments

K ee p c he ck in g o n t he p oi nt er s & d o a m en ta l c he ck l is t o f t he

acceptable points

Be convinced about the profile and then only go ahead

Advisor Role

To provide ongoing financial advice for his/her client:

Identify future client

Making appointments

Conduct financial review meetings with prospects / clients


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Close sale

Get referrals

Provide service to clients

Follows internal sales & reporting systems:

Working environment:

To be part of a world class sales team.

Work from your own office or residence.

Work full t ime or part t ime.

Earn commission, bonus $ incentives.

No upper limits in earnings.

Flexible career.

Your opportunity:

No startup capital required.

Flexible working environment.

Be your own boss.

Unlimited earning potential.

To be part of world - class team.

Extensive training to make you a professional advisor:

State-of-the-art training on :

Selling skills.

Product knowledge.

Relationship skills.

Training delivery through several convenient options :

Face to- face.

Online.

Self learning.


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Some of our high performers get.

YEAR 1 YEAR 2 YEAR 3

Number of policies sold 50 75 100

Average Premium Rs. 16000 16000 16000Total primium earned Rs.

800000

1200000 1600000

Average commission including

bonuses estimates @ 22.5%*

180000

270000 360000

Earnings from new business Rs 180000 270000 360000

Commission on renewal

premium @ 6%

48000 72000

For year 2,3 & 3% after that 48000

Earnings from renewal business

Rs

48000 120000

Total earnings Rs. 180000 318000 480000

Depending on the product mix commission can go upto 35% in of

first year, 7.5% in the 2 n d year & 3 r d year & 5% 4 t h year onwards?

Recognition programs :

Foreign trips & seminars.

Select club memberships:

1 . B ir la Sun L ife club .

2 . Birla Sun Life s tar c lub.

MDRT Membership.

Career progression & future opportunities:

Exclusive program for high potential achievers.
mailto:[email protected]%25mailto:[email protected]%25


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Hand picked advisors.

A fast track career path.

Recognition as Tiger

Continue doing your business.

Criteria.

-Age 25 40 years

-At least 1 year in system

-Case count 2 per month

Part time career as a Trainer.

Conduct foundation programs.

Share best flied practices.

Replicate your business.

Continue doing your business.

Criteria.

-Age 25-45 years

-At least 6 months s in system

- 2 case count per month

Fast track pinnacle programmes:

A full t ime career as audit manager

Greater earning potential

Personal Development

Performance criteria

-Age 25-45 years

-At least 6month in system

-30 issuance within 6 months


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Pinnacle programmes:

A full t ime career as a unit manager

Greater earning potential

Personal Development

Performance criteria

-Age 25-45 years


-Average 2 case count per month

Agency champion:

Take your business to the next level

Entrepreneurs ,develop your own business

Recruit new advisor and make your own team

Increased reach and earning potential

Criteria


-Minimum 36 policies and 3.6lacs premium

-Selection process( assessment center)

Next steps

Confirmation of mutual interest

Selection interview

Profiling test dates

Draft payment favoring

Birla Sun Life Insurance Ltd

payable in mumbai

Finalize Training Dates, venue


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Support team the Company:

Field visits

Training on products

& selling skills

regular business reviews

be a coach & mentor

recognize high performers

help you become financially independent

Expectations of team

Achieve sales targets

Participate in all meetings

Attend all training programs

Weekly reviews at the office

Follow the sales process

Follow weekly reporting process

INSURANCE ADVISOR AGREEMENT

Insurance advisor it is a kind of agreement done between advisor to be recruited

and Birla Sun life Insurance Company Ltd.

BSLI is desires of appointing the as its Insurance advisor for soliciting and

procuring life Insurance business for on behalf of BSLI and to provided various services

the policy holders. Similarly Insurance advisor has to obtain and Insurance license to act

and Insurance agent under Section 42 of Insurance act 1938 and its desires of being

appointed as Insurance advisor of BSLI

This is the kind of agreement which each and every advisor has to adhere. Its

agreement give the brief discussion effective date of appointment, area of Insurance,

advisor minimum performance requirement and service standards others conditions

confidentially to be maintain and compensation and remuneration.


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2. Effective Date and Appointment as Insurance Advisor:

2.1- This Agreement shall come into force on and from the date of issue of the

license to the Insurance Advisor to act as an insurance agent, provided that the

Company may choose, in writing, a date other than the date of issue of the license

on and from which this Agreement shall come into force (such date of coming into force

to this Agreement referred to as Effective Date in this Agreement). However, where

the Insurance Advisor already holds a valid subsisting license before execution of this

Agreement, the Effective Date of this Agreement shall be the date of execution of this

Agreement.

2.2- BSLI hereby appoints the Party of the Other Part as Insurance Advisor and the Party

of the Other Part hereby accepts his appointment as an Insurance Advisor of BSLI .

2.3- The appointment, continuance and functioning of the Insurance Advisor shall

be also governed by and shall be subject to the provisions of the Applicable Laws.

3. Business Area of Insurance Advisor:

3.1- The Insurance Advisor will be entitled to solicit insurance business from such

territories (and whether in India only or outside of India as well ) as shall be informed to

the Insurance Advisor separately (such area referred to as Business Area and, area

other than Business Area will be referred to as Non-Business Area). Where the

Insurance Advisor proposes to source business from any Non- Business Area, he shall

obtain the prior approval of BSLI. would be entitled to change / transfer his appointment

to any other area.

3.2- The Insurance Advisor further agrees that even within his Business Area, he shall

not solicit or procure life insurance business from any place/location which is on the list

of Non-Serviceable Pin codes (Serviceable Pin code refers to pin codes of such areas

where BSLI can provide customer service to its customers / policyholders, and any pin

code other than Serviceable Pin code refers to Non- Serviceable Pin codes). The list of


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with the Code of Conduct prescribed by the Insurance Regulatory and Development

Authority (Licensing of Insurance Agents) Regulations, 2000, as amended from time to

time (hereinafter referred to as the Code of Conduct) as though the said Code of

Conduct has been explicitly set out in and forms part of this Agreement.

5.2- The Insurance Advisor shall not allow or offer to allow, either directly or indirectly,

as an inducement, to a prospect or a policyholder, to take out or renew or continue a

policy, any rebate of the premium payable under the Policy or of the commission payable

to him; nor shall he offer any other rates, advantages, terms or conditions than those

offered by BSLI. The Insurance Advisor specifically confirms his awareness of and

continued adherence to the provisions of Section 41 of the Insurance Act, 1938. Breach

of this clause will entitle BSLI to terminate this Agreement forth with and without any

notice.

5.3- The Insurance Advisor agrees and undertakes to abide by the following conditions:

5.3 a- The Insurance Advisors shall not to obtain / seek / provide / give undue favors or

graft from / to any employee of BSLI or any co-advisor or any person, customer or

policyholder of BSLI.

5.3 b- The Insurance Advisors shall not accept / give gift of substantial value (greater

than Rs 1,000 or such amounts as BSLI may specify ) from / to any employee of BSLI or

any co-advisor or any person, customer or policyholder of BSLI in connection with any

matter or dealing concerning BSLI 5.3 c- The Insurance Advisor shall operate with

values and standards befitting the standing of BSLI.

5.4- In the event of violation of Code of Conduct or any of the guidelines / operating

instructions of the Company or on happening of any act of commission or omission

which constitutes a malpractice, BSLI shall be entitled, without prejudice to its right of

termination of this Agreement, to warn the Insurance Advisor or require it to take any

steps or do any act in rectification of any such act, and Insurance Advisor agrees to act in

accordance with any such communication.


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5.5- The Insurance Advisor shall be responsible for the accuracy, truthfulness and

completeness of the information furnished in the Agents Confidential Report in proposal

forms logged by him or otherwise made available to BSLI in respect of any proposal.

5.6- The Insurance Advisor shall, promptly and in any case not later than the time

stipulated by BSLI in that behalf transmit to the concerned office of BSLI all proposals

for insurance and all other documents procured or received by or called for from him.

This would include but shall not be restricted to customers / policyholders proposal

forms, supporting or other documents, information, payment instruments, letters /

communications addressed to BSLI and documents relating to assignment / nomination,

Insurance Advisor shall ensure compliance with Section 64 VB of the Act.

5.7- The Insurance Advisor shall not and is not authorized to accept any money, in case

from any prospect / customer / policyholder. Where any such person wishes or proposes

to make any payment in cash, the Insurance Advisor shall direct him to the appropriate

office of BSLI for making such payment personally or advise him of the permissible

modes of payment to BSLI. Insurance Advisor can accept cheque, demand draft or other

payment instruments (not being a bearer cheque) from a prospect or a policyholder if and

only if they are drawn in the name of BSLI. Without prejudice to the other provisions of

this Agreement providing for indemnification to BSLI by the Insurance Advisor, the

Insurance Advisor specifically confirms and undertakes to hold BSLI safe, harmless and

indemnified at any time and at all times against any demand, claim , action or proceeding

arising from any breach, whether intended or not, of the provision of this clause. The

Insurance Advisor further confirms that where he accepts any cash in breach of this

clause, he shall be acting an agent of the customer / policyholder till the time the cash in

deposited by him with BSLI, and will continue to be such agent till he continues to hold

any cash accepted from such customer / policyholder.

5.8- The Insurance Advisor shall attend all meetings, workshops, trainings and briefings

conducted by or on behalf of BSLI to create / enhance awareness as to the Insurance

Products, business plans and policies of BSLI and any other matter of relevance to them

of which reasonable notice has been given to the insurance advisor. In particular the

Insurance Advisor shall attend all training and refresher sessions for Insurance Advisors

unless prevented by a cause, which in the opinion of BSLI is reasonable.


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5.9- Where the Insurance Advisor intends to bring out or publish any material in any

form through any medium, concerning BSLI, its business or its Insurance Products, the

Insurance Advisor shall obtain prior written approval of BSLI. Further, he shall observe,

follow and comply with the provisions of the Insurance Regulatory and Development

Authority (Insurance Advertisements and Disclosure) Regulations, 2000 of the same.

5.10- The Insurance Advisor shall solicit and procure life insurance business for BSLI

and discharge his obligations under this Agreement in accordance with BSLIs corporate

objectives and with particular regard to BSLIs image and standing in the industry and in

the community.

5.11- The Insurance Advisor shall observe, follow and comply with all the

communication, directions and instructions given by BSLI from to time, either generally

or with particular reference to the Insurance Advisor. Such communications, directions

and instructions may be sent by courier, email, post, and fax or may be posted on the

Restricted Website Area.

5.12- The Insurance Advisor shall familiarize himself with the Application Law as in

force time to time and which has a bearing on the discharge of his obligations as an

insurance agent; provided that in the event of any change in the Applicable Law resulting

in a dilution or abrogation of his obligations under this Agreement, to the extent not

provided otherwise, the Insurance Advisor shall continue to be bound by the obligations

as were existent prior to such change, unless expressly approved in writing by BSLI, or

unless inconsistent with Applicable Law.

5.13- The Insurance Advisor shall not solicit or procure life insurance business for or

promote the sales or distribution of the Insurance Products of any other Insurance

company or seek or obtain or commence any employment in any other life insurance

company so long as this Agreement is in force and for a period of six months after its

termination. BSLI may however in writing waive the conditions under this sub clause.

5.14- The Company will be entitled to levy charges of deduct them from amounts

payable to the Insurance Advisor as it may deem fit in respect to any of the services

provided by the Company to the Insurance Advisor.


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6. Compensation and Remuneration:

6.1- As compensation and remuneration for the due performance of his obligations

under this Agreement, the Insurance Advisor shall be paid commission at such rates as

may be notified by BSLI to the Insurance Advisor from time, subject to deduction of

applicable taxes under the law in force from time to time in respect of policies effected

through the insurance Advisor; provided that the Insurance Advisor may be paid

commission for effecting the revival of lapsed policies subject to the provision of Sub-

section(2A) of Section 40 of the Act. The Insurance Advisor agrees to provide his

income tax PAN number, or if acquired subsequently, immediately after the same has

been so acquired. In the event of failure to provide PAN number, the Company will be

entitled to block the payments of the Insurance Advisor.

6.2- BSLI shall be entitled to deduct the service tax (or any similar tax, in lieu of or in

addition to service tax), including any cess, surcharge or similar tax thereon, from the

commissions or any other amounts payable to the Insurance Advisor. However, in best

commercial interests BSLI may decide to recover only a part of such taxes and bear the

rest.

6.3- BSLIshall be entitled to revise (upwards or downwards) the rates of commission, as

in force from time to time, by notice in writing to the Insurance Advisor in any one of the

following manner.

6.3 a- by a written notice to the Insurance Advisor; or

6.3 b- by posting the revised rates on the Restricted Website Area; or

6.3 c- providing copies of the revision to all the offices, branches, outlets or franchisees

of BSLI.

6.4- The Insurance Advisor shall be deemed to have notice of the revised commission

rates at the earliest of (a) on receipt of the written notice as per (a) above; or (b)

publication or posting on the Restricted Website Area as per clause (b) above; or (c)


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copies of such revision being made available to BSLI office, branch, outlet or franchise

nearest to the address of the Insurance Advisor as per clause (c) above.

6.5- BSLI shall be entitled to specify (and revise) differential commission rates for

different Insurance Products and based on various parameters including new business

premiums, renewal premiums, business done by Insurance Advisor etc.

6.6- In case of any excess or wrong payment of commission or any amount to the

Insurance Advisor or any commission or any amount which subsequent to their payment

becomes recoverable or receivable from the Insurance Advisor for any reason

whatsoever, BSLI shall be entitled to adjust such amounts (which have been paid in

excess or wrongly or have to be received / recovered back ) in the subsequent payment(s)

to the Insurance Advisor, Alternatively, or where no amounts are due to the Insurance

Advisor, BSLI will require the Insurance Advisor to repay or refund forthwith such

amounts, and thereafter the Insurance Advisor shall repay the amount within 15 days

after the receipt of any communication from BSLI in that regard.

6.7- The payment of commission to the Insurance Advisor after the termination or

cessation of this Agreement or payment of commission to the legal heirs of a deceased

Insurance Adviser shall be as provided in the Applicable Law and in accordance with

such other communications or guidelines of BSLI as may be specified in this behalf.

6.8- Notwithstanding the above, BSLI shall not be obliged to pay any commission or

remuneration to the Insurance Advisor if the termination is on account of fraud or any

criminal conduct or serious violation of Applicable Law.

7. Miscellaneous provisions:

7.1- All forms, applications, documents, properties or securities received by the

Insurance Advisor for or on behalf of BSLI shall be held by him in trust for BSLI, and

shall be promptly handed over to BSLI. Upon termination or cessation of this Agreement

the Insurance Advisor shall promptly deliver / return, to BSLI in good condition all

forms, application, documents, properties or securities and all sales literature, manuals

and computer software received from or for or on behalf to or provided by BSLI In the

event of failure of the Insurance Advisor to do so, BSLI shall be entitled to inform about

such failure to IRDA, to organizations with which the Insurance Advisor has


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employment or to his business associates including any insurance company of which the

Insurance Advisor becomes or proposes to become the insurance advisor, and further I

BSLI will not furnish the NOC to the Insurance Advisor till such time the failure

continues.

7.2- The Insurance Advisor shall indemnify and keep indemnified and save harmless at

all times BSLI in respect of any indebtedness cast on BSLI or in respect or any claim,

loss or damage or any action or proceeding of whatever nature or for any notices or

expenses arising out of or caused by any act of omission of the Insurance Advisor in

relation to any matter specified in this Agreement or breach of any provisions under this

Agreement failing which BSLI may, without prejudice to any other right or remedy

available to it under law, recover such debt, claim, loss, damage or expenses from any

money due and payable to the Insurance Advisor.

7.3- The Insurance Advisor shall allow officers of BSLI (including its auditors and

advisors), authorized in writing by BSLI , to inspect and make copies of all / any records

maintained by the Insurance Advisor in relation to any subject matter under this

Agreem

A Project Reporrt on Training BIRLA SUNLIFE

Documents