A STUDY ON SBI LIFE INSURANCE UNIT – I Introduction SBI Life Insurance is a joint venture between State Bank of India (SBI) and BNP Paribas Card if. SBI owns 74% of the total capital and BNP Paribas Card if the remaining 26%. State Bank of India (SBI) is a multinational banking and financial services company based in India. The Bank is India’s largest commercial Bank in terms of assets, deposits, profits, branches, number of customers and employees, enjoying the continuing faith of millions of customers across the social spectrum. It is the oldest commercial Bank in the Indian subcontinent, strengthening the nation’s trillion-dollar economy and serving the aspirations of its vast population. SBI serving the country with over 15,000 branches in India and 190 foreign offices, 5 banking subsidiaries, other non-banking Indian and foreign subsidiaries and also having over 2 lacs employees. SBI has surpassed H 26 trillion in business size. SBI has over 100,000 touch points (branches, ATMs, CSPs) that directly serve customers everywhere. But this is not just the story of a commercial Bank, it is the story of how an inspirational India has embraced growth over the years, and how it continues to look ahead with confidence.
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A STUDY ON SBI LIFE INSURANCE
UNIT – I
Introduction
SBI Life Insurance is a joint venture between State Bank of India (SBI) and BNP Paribas
Card if. SBI owns 74% of the total capital and BNP Paribas Card if the remaining 26%.
State Bank of India (SBI) is a multinational banking and financial services company based in
India. The Bank is India’s largest commercial Bank in terms of assets, deposits, profits,
branches, number of customers and employees, enjoying the continuing faith of millions of
customers across the social spectrum. It is the oldest commercial Bank in the Indian
subcontinent, strengthening the nation’s trillion-dollar economy and serving the aspirations of its
vast population.
SBI serving the country with over 15,000 branches in India and 190 foreign offices, 5 banking
subsidiaries, other non-banking Indian and foreign subsidiaries and also having over 2 lacs
employees. SBI has surpassed H 26 trillion in business size. SBI has over 100,000 touch points
(branches, ATMs, CSPs) that directly serve customers everywhere. But this is not just the story
of a commercial Bank, it is the story of how an inspirational India has embraced growth over the
years, and how it continues to look ahead with confidence.
SBI makes a profound contribution in driving all sectors of the Indian economy – primary,
secondary and tertiary, in equal measure. It is one of India’s most familiar institutions of trust
stretching from the remotest villages to the global financial hubs.
BNP Paribas Cardif is the life, property and casualty insurance arm of BNP Paribas, one of the
strongest banks in the world. BNP Paribas Group, having presence in more than 80 countries
ranks highly in Retail Banking, Investment Solutions and Corporate & Investment Banking. BNP
Paribas Card if is one of the world leaders in creditor insurance. BNP Paribas Cardif’s success is
anchored in an innovative business model. The company develops savings and insurance
products and services, and distributes them through a network of partners including banks, credit
companies, the insurance units of automobile manufacturers, telecom operators, insurance
brokers, retail chains etc. With a presence in 37 countries, BNP Paribas Card if adapts its
solutions to the needs of local customers, with its partners, skillfully integrating the distinctive
economic and cultural factors that characterize each market.SBI Life’s mission is to emerge as
the leading company offering a comprehensive range of Life Insurance and pension products at
competitive prices, ensuring high standards of customer service and world class operating
efficiency.SBI Life has a unique multi-distribution model encompassing vibrant Bancassurance,
Retail Agency, Institutional Alliances and Corporate Solutions distribution channels.
SBI Life extensively leverages the State Bank Group relationship as a platform for cross-selling
insurance products along with its numerous banking product packages such as housing loans and
personal loans. SBI’s access to over 100 million accounts across the country provides a vibrant
base for insurance penetration across every region and economic strata in the country, thus
ensuring true financial inclusion. Agency channel, comprising of the most productive force of
over 110,000 Insurance Advisors, offers door to door insurance solutions to customers.
Indian economy experienced a major structural change within the industrial sector as a result of
the major drive for industrial diversification in the mid-fifties. The pace of transition of the
Indian economy from an agricultural economy to an industrial one was quite slow since 1951.
This underlines a major structural shift in the Indian economy especially in service sectors and
less to the performance of the agricultural sector. Among various service sector activities
banking and insurance plays a vital role. The banking sector is a very important sector of the
Indian economy. There are many factors to examine when looking at insurance companies. Poor
fundamentals not only indicate a poor investment opportunity, but also hinder growth. Nothing is
worse than insurance customers discovering that their insurance company might not have the
financial stability to pay out if it is faced with a large proportion of claims. Hence performance
analysis is essential especially in case of insurance companies. SBI Life Insurance Company is a
giant in the insurance industry especially in Bancassurance. Hence, a study on performance
evaluation of SBI Life Insurance Company has been felt essential in this regard
MEANING OF INSURANCE
Risk-transfer mechanism that ensures full or partial financial compensation for
the loss or damage caused by event(s) beyond the control of the insured party. Under an
insurance contract, a party (the insurer) indemnifies the other party (the insured) against a
specified amount of loss, occurring from specified eventualities within a specified period,
provided a fee called premium is paid. In general insurance, compensation is normally
proportionate to the loss incurred, whereas in life insurance usually a fixed sum is
paid. Some types of insurance (such as product liability insurance) are an
essential component of risk management, and are mandatory in several countries. Insurance,
however, provides protection only against tangible losses. It cannot ensure continuity
of business, market share, or customer confidence, and cannot provide knowledge, skills,
or resources to resume the operations aftera disaster.
A contract (policy) in which an individual or entity receives financial protection or reimbursement
against losses from an insurance company. The company pools clients' risks to make payments more
affordable for the insured.
BREAKING DOWN 'Insurance'
When shopping around for an insurance policy, look for the best priced package that is right for
you - prices can vary from one insurance company to the next. And make sure you know what
you want. Some individuals, for example, prefer 24-hour claims service or face-to-face contact
with an insurance representative. Also consider the claims settlement process, the amount of
the deductible and the extent of the replacement coverage. Insurance companies and the policies
they offer are not all the same, so think about more than just the price.
In India, insurance has a deep-rooted history. It finds mention in the writings of Manu
( Manusmrithi ), Yagnavalkya (Dharmasastra) and Kautilya ( Arthasastra ). The writings talk in
terms of pooling of resources that could be re-distributed in times of calamities such as fire,
floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient
Indian history has preserved the earliest traces of insurance in the form of marine trade loans and
carriers’ contracts. Insurance in India has evolved over time heavily drawing from other
countries, England in particular.
1818 saw the advent of life insurance business in India with the establishment of the Oriental
Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the
Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870
saw the enactment of the British Insurance Act and in the last three decades of the nineteenth
century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in
the Bombay Residency. This era, however, was dominated by foreign insurance offices which
did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and
London Globe Insurance and the Indian offices were up for hard competition from the foreign
companies.
In 1914, the Government of India started publishing returns of Insurance Companies in India.
The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life
business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to
collect statistical information about both life and non-life business transacted in India by Indian
and foreign insurers including provident insurance societies. In 1938, with a view to protecting
the interest of the Insurance public, the earlier legislation was consolidated and amended by the
Insurance Act, 1938 with comprehensive provisions for effective control over the activities of
insurers.
The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a
large number of insurance companies and the level of competition was high. There were also
allegations of unfair trade practices. The Government of India, therefore, decided to nationalize
insurance business.
An Ordinance was issued on 19 January 1956 nationalising the Life Insurance sector and Life
Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16
non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. The
LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.
The history of general insurance dates back to the Industrial Revolution in the west and the
consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a
legacy of British occupation. General Insurance in India has its roots in the establishment of
Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian
Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of
general insurance business.
1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton of
India. The General Insurance Council framed a code of conduct for ensuring fair conduct and
sound business practices.
In 1968, the Insurance Act was amended to regulate investments and set minimum solvency
margins. The Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general
insurance business was nationalized with effect from 1 January 1973. 107 insurers were
amalgamated and grouped into four companies, namely National Insurance Company Ltd., the
New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India
Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a
company in 1971 and it commence business on January 1sst 1973.
This millennium has seen insurance come a full circle in a journey extending to nearly 200 years.
The process of re-opening of the sector had begun in the early 1990s and the last decade and
more has seen it been opened up substantially. In 1993, the Government set up a committee
under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations
for reforms in the insurance sector.The objective was to complement the reforms initiated in the
financial sector. The committee submitted its report in 1994 wherein, among other things, it
recommended that the private sector be permitted to enter the insurance industry. They stated
that foreign companies be allowed to enter by floating Indian companies, preferably a joint
venture with Indian partners.
Following the recommendations of the Malhotra Committee report, in 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body to
regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in
April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance
customer satisfaction through increased consumer choice and lower premiums, while ensuring
the financial security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the
power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000
onwards framed various regulations ranging from registration of companies for carrying on
insurance business to protection of policyholders’ interests.
In December, 2000, the subsidiaries of the General Insurance Corporation of India were
restructured as independent companies and at the same time GIC was converted into a national
re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.
Today there are 28 general insurance companies including the ECGC and Agriculture Insurance
Corporation of India and 24 life insurance companies operating in the country.
The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with
banking services, insurance services add about 7% to the country’s GDP. A well-developed and
evolved insurance sector is a boon for economic development as it provides long- term funds for
infrastructure development at the same time strengthening the risk taking ability of the country.
LIFE INSURANCE
Life insurance or life assurance, especially in the Commonwealth, is a contract between
an insurance policy holder and aninsurer or assurer, where the insurer promises to pay a
designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death
of an insured person (often the policy holder). Depending on the contract, other events such
asterminal illness or critical illness can also trigger payment. The policy holder typically pays a
premium, either regularly or as one lump sum. Other expenses (such as funeral expenses) can
also be included in the benefits.
Life policies are legal contracts and the terms of the contract describe the limitations of the
insured events. Specific exclusions are often written into the contract to limit the liability of the
insurer; common examples are claims relating to suicide, fraud, war, riot, and civil commotion.
Life-based contracts tend to fall into two major categories:
Protection policies – designed to provide a benefit, typically a lump sum payment, in the
event of specified event. A common form of a protection policy design is term insurance.
Investment policies – where the main objective is to facilitate the growth of capital by
regular or single premiums. Common forms (in the U.S.) are whole life, universal life,
andvariable life policies.
An early form of life insurance dates to Ancient Rome; "burial clubs" covered the cost of
members' funeral expenses and assisted survivors financially. The first company to offer life
insurance in modern times was the Amicable Society for a Perpetual Assurance Office, founded
in London in 1706 by William Talbot and Sir Thomas Allen.[2][3] Each member made an annual
payment per share on one to three shares with consideration to age of the members being twelve
to fifty-five. At the end of the year a portion of the "amicable contribution" was divided among
the wives and children of deceased members, in proportion to the amount of shares the heirs
owned. The Amicable Society started with 2000 members.[4][5]
The first life table was written by Edmund Halley in 1693, but it was only in the 1750s that the
necessary mathematical and statistical tools were in place for the development of modern life
insurance. James Dodson, a mathematician and actuary, tried to establish a new company aimed
benefit. However, life risk is covered for the entire amount of the agreed sum assured, even if a
portion of the benefits has already been paid.
4.Whole Life Insurance
Unlike a term insurance policy, whole life plans strive to give you lifelong protection. Such
cover comes with death benefits, meaning your family can continue to be financially stable after
your death. It also comes with maturity benefits, after the expiry of the term. Most people use
this type of policy to create an inheritance or estate for their children.
5.Children’s Policies
These plans can be taken in the name of the child or the parent. However, it is only for the
benefit of the child. This helps parents mobilize finances when the child reaches a particular age
or stage of life.
6.Annuity Plans
Just like a term insurance policy, this type of insurance aims at covering income loss. After
retirement, an individual is cut-off from a regular source of income, and any benefits, like
gratuity or provident funds, run the risk of getting exhausted quickly. Pension is a model
provision for safe-guarding retirement, as the benefit is like a regular income. So, it is best to get
pension plans in order to ensure financial independence after retirement.
The Company has registered a strong and consistent performance during FY 2013-14. The key
financial parameters of the Company are as follows:
Maintained its No. 1 position amongst private life insurers on total New Business
Premium (NBP) basis, achieving highest NBP of H 5,066 crores with a market share of 17.2%
amongst private players;
Registered a strong growth of 14% in NBP (Regular business) standing at H 2,998 crores
in FY 2014 as against H 2,618 crores
of FY 2013;
Demonstrated a robust growth of 17.7% in its Individual new business APE portfolio;
Collected a Renewal Premium of H 5,673 crores during the FY 2014 from various
distribution channels;
Continued to show a steady growth both in business and earnings. The Net Profit of the
Company grew by 19% and stands at H 740 crores during the year ended March 31, 2014 as
against H 622 crores of the preceding year;
Continued to maintain one of the lowest Operating Expense (excluding service tax on
ULIP charges) to Gross Written Premium ratio (the OPEX Ratio) at 10.28%, amongst private
sector life insurance companies;
Based on the Company’s overwhelming performance during the FY 2014 in this subdued
growth phase of the industry, your Company has registered a strong growth of 13% in its Assets
under Management (AUM) to H 58,480 crores as on March 31,2014 as against H 51,912 crores
as on March 31, 2013, while the benchmark index (Nifty 50) has posted a return of 18% during
the year;
The Solvency ratio of the Company stands at 2.23 as on March 31, 2014 as against the
Regulatory requirement of 1.50, indicating the strong & stable financial health of the Company;
Based on the robust financial performance of the Company year on year, there has been no
external capital infusion during the last five financial years;
In view of Company’s performance, profitability, cash flows and financial position, an interim
dividend was declared during the FY 2013-14 at 10% of equity share capital amounting to H 117
crores (including dividend distribution tax);
The Company continued to focus on its planned expansion through quality recruitment and
opening up of new branch offices. As at March 31, 2014, the Company has 762 offices, 1,10,491
Insurance Advisors (IAs) and 26,088 Certified Insurance Facilitators (CIFs) across the country as
against corresponding figures of 758 offices, 94,138 IAs and 25,160 CIFs respectively as on
March 31, 2013.
The total new business premium of H 5,066 crores comprises of:
H 1,648 crores from ‘Retail Agency’ & ‘Alternate channels’,
H 1,663 crores from ‘Bancassurance’ channel and
H 1,709 crores from ‘Corporate Solutions’ channel
H 46 crores from ‘Direct Business’
Industry & Company Outlook
Financial Year 2013-14 was a year of stabilization for the Life Insurance Industry
considering the recently amended product
guidelines by the Regulator and sluggish economic growth. The Company and the
industry as a whole witnessed a moderate
and competitive growth in the financial year 2013-14.
Financial Year 2014-15 brings with it renewed political optimism. It is expected that the
new government will implement
effective and efficient policies and build a business friendly environment. Further, with
positive news on FDI the industry expects
to attract investment.
Further, from a business point of view companies who have well adjusted to the revised
product regulation will start reaping
the benefits this year. It will also be a year to focus on efficient use of multi-distribution
strategies.
However, year on year, SBI Life has maintained a significant lead over its closest
competitors in terms of New Business Premium
collection.
In FY 2014-15, one of the primary goals of the company is to further strengthen our
highly successful Bancassurance model
such that the channel attains a visibly dominant position in the new business portfolio.
This is to be achieved by leveraging
State Bank of India’s and its Associate Banks’ widespread branch network and equipping
select branches with commensurate
resources including manpower support which would result in higher cross sell
penetration.
Customer centricity remains the mainstay. Various initiatives continue to gather steam
across the board, ranging from customer
education initiatives, customer-connect campaigns, revival campaigns to ISO
certifications, product innovations etc.
(II) Regulatory Changes
The insurance Regulator, IRDA, has issued several guidelines during the year to bring more
transparency between insurer,
policyholder & Regulator.
The guidelines / regulations, issued / amended by IRDA during the year, includes standardization
of linked & non-linked product
architecture, standardization of application form, broker regulations, investment, re-insurance,
etc.
(III) Dividend
The Board, at its meeting held on March 25, 2014, had declared an interim dividend of 10% (H
1.00 per share) on the equity
shares of the Company, aggregating to H 117 crores (including dividend distribution tax).
(IV) Capital
The shareholding pattern during the year under review was in accordance with statutory
requirement. There was no capital
infusion by the promoters during the financial year 2013-14. The Authorized and Paid-up Share
Capital of the Company stands
at H 2,000 crores and H 1,000 crores, respectively. The existing Shareholders have continued to
remain committed to support
the business operations of the Company.
(V) Deposits
During the year under review, the Company has not accepted any deposits under Section 58A of
the Companies Act, 1956 read
with the Companies (Acceptance of Deposit) Rules, 1975, as amended, from the public.
(VI) Awards & Recognitions
Continuing its journey to achieve holistic excellence, SBI Life won several awards and
recognitions during the financial year
2013-14.
Ranked as ‘Most Trusted Private Life Insurance Brand 2013’, for the third successive year by
The Economic Times, Brand Equity
and Nielsen Survey;
Awarded as ‘Best Life Insurance Provider 2013 - Runner Up’ by Outlook Money;
W on the ‘Global Performance Excellence Award 2013’ by Asia Pacific Quality Organization
(APQO);
Awarded at BFSI (Banking Financial Services and Insurance) 2014 Awards for ‘The Most
Admired Life Insurance Company in
the Private Sector’ and ‘The Best Life Insurance Company in the Private Sector’;
W on ‘Under-served Market Penetration Award 2013’ (Private Sector) and ‘Claims Service
Company of the Year Award 2013’
(Private Sector) by Indian Insurance Awards 2013;
Awarded at World HRD Congress for ‘Dream Company To Work For 2014 in Private
Insurance sector, also ranked 4th as the ‘Dream Employer of the Year 2014’;
Awarded with ‘Employer Branding Award 2014’ for Talent Management at World HRD
Congress;
Awarded with ‘Training Provider of the Year Award’ at Asia’s Training & Development
Excellence Awards 2013 by World HRD Congress and endorsed by Asian Confederation of
Business;
Awarded with ‘Digital Inclusion Skoch Awards 2013’ for the project - Enabling partners
to collect premium through Electronic Fund Transfer - Cash & Direct Debit by Skoch awards;
Awarded with ‘Communication Excellence Award 2013’ at 4th CMO Asia Awards.
Received ‘ISO 27001 Certification for Information Security Management System’ (ISMS)
Received ‘ISO 9001:2008 Certification for Quality Management Systems for Planning,
Designing and Developing Training Programs’
We owe these awards to the constant support and trust reposed by our Policyholders and
Stakeholders and the hard work and dedication of our work force.
(VII) ProductsSBI Life has a wide range of products catering to various customer needs in the life, health,
pension, on-line & micro-insurance segment. The products are customer centric, simple to
understand and have competitive features. To maintain its competitive edge in the market, the
Company had launched six new individual products and one new group product in the financial
year 2013-14. Details of the products launched are as follows:- Individual
1) S BI Life Smart Power Insurance (UIN:111L090V01): A Unit-linked savings Plan designed
for youth
2) S BI Life Saral Swadhan+ (UIN:111N092V01): A Traditional Non-Participating Term
Insurance plan with return of premium
3) S BI Life Flexi Smart Plus (UIN:111N093V01): A Variable Insurance Participating Plan
4) S BI Life Retire Smart (UIN:111L094V01): A Unit-linked Pension Plan
5) S BI Life Smart Wealth Builder (UIN:111L095V01): A Unit-linked Savings Plan
6) S BI Life Smart Money Back Gold (UIN:111N096V01): A Traditional Participating Money
Back Plan
Group
1) S BI Life CapAssure Gold (UIN:111N091V01): A Variable Insurance Fund Based Group
Plan During the financial year, we had also modified 13 existing products and 14 existing riders
based on IRDA regulations for Linked, Non-linked and Health Products. As at March 31, 2014,
we have a total of 25 products and 14 riders.
(VIII) Customer and Partner Service Enablement
Financial Year 2013-14 marked a significant milestone in the journey towards fulfillment of the
vision ‘To be the most trusted and preferred life insurance provider’. The theme of ‘Customer
Pratham’ adopted during FY 2012-13 to ensure customer delight was further enhanced with the
below mentioned initiatives adopted during the FY 2013-14.Customer Service Enhancements
Post Issuance Welcome Calls: In our endeavour to ensure that the policy is issued as per the
customer’s need, we started post issuance welcome calls. The basic objective of the post issuance
welcome calling call is to ensure that the policy holder understands the policy terms and benefits
of the policy purchased by him.
Additional Avenues for Premium Collection
Common Service Centers (CSCs): CSCs are set up under the National e-Governance Plan
(NeGP) formulated by the Department of Electronics and Information Technology (DeitY),
Government of India. The CSCs are service delivery points at the village level for delivery of
Government, Financial, Social and Private Sector services. Currently there are around 1,24,000
CSCs spread across the country. In order to strengthen customer convenience, SBI Life has tied
up with CSCs for collection of renewal premium. Customer can walk-in to any of these CSCs
and pay his renewal premium upto H 49,999 in cash.
Accessing of SBI Life Information through SBI internet banking account: This service allows a
State Bank Group (SBG) internet banking user, who is also a SBI Life policy holder and
registered on SBI Life’s customer portal (mypolicy), to first register & thereafter seamlessly
access his /her policy details through the SBI internet login.
Tie ups with Regional Rural Banks (RRBs): In an effort to further enhance the ease of renewal
premium payment, SBI Life entered into tie ups with several RRBs, namely, Uttarakhand
Gramin Bank, Utkal Gramin Bank and Andhra Pradesh Gramin Vikas Bank.
Customer Grievance Redressal
The Company has put in place Grievance Redressal Policy which is reviewed annually
and status update of compliance is placed before the Board/ Management. This policy document
lays down various provisions, systems and procedures to ensure prompt redressal of customer
grievances through a well defined structure.
In accordance with IRDA’s Corporate Governance Guidelines, the Company has formed
a committee called the Policyholders’ Protection Committee with a view to address various
compliance issues relating to protection of the interests of policyholders,and also to keep the
policyholders well informed and educated about insurance products and complaint-handling
procedures.The Committee is responsible for putting in place proper procedures and effective
mechanism to address complaints and grievances of policyholders. The Committee meets
quarterly or as and when required. The Company has implemented the ‘Integrated Grievance
Redressal Management System’ (IGMS) in accordance and furtherance to the Grievance
Redressal Guidelines issued by the IRDA. IGMS provides online view of customer complaints
and the related TAT (turn-around time). The IGMS also facilitates escalation of complaints,
where necessary. The policyholder can approach the Company through any medium like letter,
email, phone calls, SMS, toll free numbers or can directly approach any of the SBI Life branches
for redressal of grievance. Grievance officer has been nominated at all the branch offices,
regional offices and at the corporate office of the Company. If not satisfied with the resolution
provided by the branch, policyholder can contact the customer care desk at SBI Life Regional
Office. The policyholder can also seek redressal at SBI Life Central Processing Center with
Head – Client Relationship. The contact details are provided in the policy document and on SBI
Life website.
The details of grievance disposal are as under:
22012-13
Opening Balance at the beginning of the year 11 38
Add: Additions during the year 16,062 18,686
Less: Complaints Resolved/Settled during the year (16,066) (18,713)
Complaints pending at the end of the year 7 11
Information TechnologyKeeping in view the changing demands of the customers and their need for flexible service options, SBI Life concentrated on bringing in technological innovations to increase level of conveniences of its customers. Some of the major enhancements / initiatives are as follows:(a) InfrastructureAs a part of Information Technology (IT) modernization a new datacenter (DC) was built with Tier III plus standards on 3,500 Sq feet area with 1,350 sq feet raised floor that includes a 15 seat Network Operating Center (NOC). This will greatly help increase reliability, availability and capacity scaling.Salient features of the new DC include:Scalability for next decade: Designed to host 52 racks with modular high density power load and redundant cooling.Robust & secure: High security building management system with centralized monitoring surveillance cameras, fire detection & suppression, water leakage & electronic rodent control.Redundancy on power supply: Two tier electric architecture with separate electrical room having redundant path for DG power and State Electricity board supply. The challenging task of Datacenter migration was achieved without any disruption to business.
Investments
Capital market activities for the Financial Year 2013-14 were dominated by lack of
confidence in the Rupee during the first half of the year and a diametrically opposite sentiment
emerging from favorable national election outcome in the second half.Current Account Deficit
(CAD) went to an all time high of 4.9% to GDP and as a result rupee hit a low of 68.8 against
USD.Currency and CAD issues were thankfully resolved and the Benchmark index, Sensex,
gave a return of 18.85% for the year.Sensex ended the year at 22,386 points on the back of
results of four state elections where BJP got the majority and with the hope that NDA would
emerge as a party with majority of the votes in the National Election too.In the domestic bond
markets, Yield on 10 year Government of India Bond hardened by 85 basis points to 8.81% as
Reserve Bank of India lifted the policy interest rates by 50 basis points on account of upside risk
to inflation, to anchor inflationary expectations and address the fears of the adverse impact of
tapering of quantitative easing in US. The UPA Government continued on their path of fiscal
consolidation and brought down Fiscal deficit from 5.2% of GDP to 4.5% and the Interim budget
has set target of 4.1% for FY 2014-15.
The Assets under Management (AuM) increased by 13% to H 58,480 crores as at March
31, 2014 from H 51,912 crores as at March 31, 2013. The AuM was made up of H 29,883 crores
of traditional funds (including share holders funds) and H 28,597 crores of Unit Linked Funds.
The Unit linked portfolio majorly comprises of equity funds and NAV guaranteed funds.The
performance of both traditional and unit linked funds was satisfactory with majority of funds,
equity and bond funds comfortably beating the benchmark and their respective peers.
UNIT - III
FINDINGS
Life begins at 20. Young and energetic, with dreams and aspirations for an enriching career, it’s
the right time that you start planning about your future. You are probably focused on earning
more to buy yourself a car, maybe save up enough money for your long yearned holiday abroad
or even have marriage plans already! With age on your side, limited financial responsibilities and
insurance available at a low cost, Life insurance can provide you financial security for the future,
letting you enjoy your financial independence. Moreover, it provides your loved ones with
resources in case of any unforeseen events.
SBI Life offers a wide range of solutions that can suits your insurance needs at this stage of life.
SBI Life Insurance always keeps you informed about latest products and services which are
beneficial to you. However, we have notice some instances where unsolicited calls / e-mails have
been made / sent by vested interests in the name of SBI Life Insurance Company Ltd. or
Insurance Regulatory and Development Authority (IRDA).
We understand the importance of keeping your personal information secure and confidential.
Identity theft, phishing (fake) e-mails and vishing (fake) calls are threat to your financial
security.
• CHECK CALL AUTHENTICITY
- Any calls that solicit to get your
personal financial information like
your policy no., bank details, your
password, etc are not from SBI
Life Insurance
• CHECK E-MAIL
AUTHENTICITY - Reply to an e-
mail, only if it is received from the
domains - sbilife.co.in or sbi-
life.com
• Always deposit an Account Payee
cheque in favour of ’SBI Life
Insurance Co. Ltd. Policy No.
XXXXXXXXXXX’
• Make online transactions only on
secured websites with ’https’ and
• Do not share your confidential
information like password,
customer-id, date of birth, credit
card number, etc on e-mail or on a
phone call, event if it is from a
trusted source like your insurer,
IRDA, Income Tax Department,
Bank, Credit Card Company, etc
• Do not issue a bearer or blank
signed cheque to anyone
• Do not handover renewal premium
payment cash to any entity, except
the authorised collection centres
(City Union Bank, Karur Vysya
Bank, AP Online and MP Online
• Do not handover your credit card
to anyone or disclose your CVV or
PIN number to anyone
has a padlock symbol rather than
’http’ in the address bar.
Be Vigilant on Fraudulent Practices
Cash/Cheque related frauds
Premium paid through Cash/DD/Cheque etc. to any individual posing to be a representative of
SBI Life Insurance and not in receipt of any confirmation that the amount has been accounted to