SUMMER TRAINING REPORT On Death claims Analysis and Trends (Bihar and Jharkhand) Submitted To AMITY SCHOOL OF INSURANCE AND ACTURIAL SCIENCE, NOIDA AMITY UNIVERSITY – UTTAR PRADESH In Partial Fulfillment Of Degree of MBA In INSURANCE (2008-10) Under Guidance of Mr. Nehal Ahmed Operations Head Bihar and Jharkhand SBI LIFE Insurance co. Ltd. Submitted By: PRITI K. KANTH MBA INSURANCE (2008-2010)
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SUMMER TRAINING REPORTOn
Death claims Analysis and Trends(Bihar and Jharkhand)
Submitted To
AMITY SCHOOL OF INSURANCE AND ACTURIAL SCIENCE, NOIDA
AMITY UNIVERSITY – UTTAR PRADESH
In Partial Fulfillment OfDegree of MBA
InINSURANCE (2008-10)
Under Guidance of
Mr. Nehal AhmedOperations Head
Bihar and JharkhandSBI LIFE Insurance co. Ltd.
Submitted By:
PRITI K. KANTHMBA INSURANCE (2008-2010)
Roll No. : M08032
ACKNOWLEDGEMENT
If words are considered to be signs of gratitude then let these words convey the very
same.
My sincere gratitude to SBI Life Insurance Co. Ltd. for providing me with an opportunity
to work with SBI Life and giving necessary direction on doing this project to the best of
my abilities.
I am highly indebted to Mr. Nehal Ahmad, Head Ops (Bihar and Jharkhand) and
company project guide, who has provided me with the necessary information and also for
the support extended out to me in the completion of this report and his valuable
suggestion and comments in bringing out this report in the very best way possible.
I would also like to thank Mr. Ashish Mishra, Mr. Kundan Kumar and the entire
team of SBI Life Ops Patna PC, for the constant support and help in the successful
completion of this project.
I also thank Mr. J.L. Kapoor, Faculty, Amity University, Noida, who has sincerely
supported me with the valuable insights into the completion of this project.
Signature
(Student)
Sr. No. Subject Cover Pages
2
1. Project Proposed 4-5 1.1 Objective of the Project 1.2 Methodology 1.3 Limitations
2. Introduction 6-10 2.1 Definition of Insurance 2.2 Function of Insurance 2.3 Definition of Life Insurance 2.4 Role of Life Insurance 2.5 Importance of Life Insurance
3. Indian Insurance Industry 11-18 3.1 History 3.2 IRDA 3.3 Possibilities
4. Global Insurance Industry 19-20
5. Functioning of Insurance Industry 21-23
6. Insurance and Economy 24-25
7. SBI Life Insurance Company Ltd. 26-33 7.1 Introduction 7.2 Products of SBI Life 7.3 Operation Work of SBI Life
8. Competitors of SBI Life 34-41
9. Policy Claims 43-82 9.1 Introduction 9.2 Claims Management 9.3 Process of Claims settlement
9.3a) Process of Claims Settlement at SBI Life9.3b) Process of claims settlement at other companies.
9.4 Analysis of the claims data of SBI LIFE for Bihar and Jharkhand.
NET CURRENT ASSETS (C) = (A – B) (54214) (31383) (2215) (3285) 715 295 384
MISCELLANEOUS EXPENDITURE (To The Extent Not Written Off Or Adjusted)
Debit Balance In Profit & Loss Account (Shareholders’ Account)
48990 27601 20431 10577 6901 4220 1564
Debit Balance In Policyholders’ A/C
TOTAL 1362868 676319 354299 104110 36256 23342 15229
Note: Figure in bracket represents negative value
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9. POLICY CLAIMS
9.1 Introduction:
“The real service of insurance is at the time of payment of the claim.”
The operative clause of a life insurance policy states that the insurer will pay to the policy
holder or nominee or such other person as may have a right to it, certain sums of money
on the happening of specified events. When such events happen, the insurer has to fulfill
the promise of making the payments.
A demand on the insurer to fulfill its promise, as per the terms and
conditions of the policy, is called a ‘Claim’.
Claims may arise because of:
Survival up to the end of policy term, which is the date of maturity, this is known
as Maturity Claims
Survival up to a specified period during the term, known as Survival Benefits.
Death of the life assured during the term, known as DEATH CLAIMS.
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Maturity Claims:
A maturity claim is payable as per the terms of the contract, at the end of the term of
policy, if the life assured lives up to that date. It includes the Sum Assured and any other
guaranteed addition s plus vested bonuses. Any debt or charge under the policy, like
loans, outstanding premia (due but not paid), etc. will be deducted. If the policy remains
paid up (automatically or on request), the paid up value, which will include the vested
bonus as on that date, will be the claim amount.
Survival Benefits:
The Money Back type plans promise payment of part of the Sum Assured at intervals,
during the term of the policy. As in the case of maturity claims, the specified amounts are
paid on the due dates, after deduction of the outstanding loan interest, outstanding
premium, X charge, etc. on receipt of the discharge voucher duly stamped, signed and
witnessed.
Death Claims:
Death claims are classified into two categories:
Early claims
Non early claims
Claims arising within three years of the date of commencement or revival reinstatement,
are termed as ‘Early death Claims’ or ‘Premature death claims’. Claims arising more than
two years after the date of risk/revival/reinstatement are non-early claim.
Early claims are looked upon with some suspicious and processed
differently.
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In case of non early claims, the normal requirements would be:
The policy document, together with any deeds of assignment
Claimant’s statement giving the details of the cause of death, nature of last illness,
treatment, burial or cremation, etc.
Certified extract from death register maintained by the Municipality, the local
board or any other competent authority
Proof of title of claimant.
If the duration of the policy at the time of death is more than 3 years and the title of
claimant is clear, the discharge voucher may be sent along with the call for requirements.
This is done to expedite settlement, although strictly, the discharge voucher cannot be
prepared without satisfaction that the reported death is indeed the death of the life
assured.
Early Claims:
It is assumed that a person, who is accepted by the underwriter as good for life insurance,
is not likely to die within 2 years.
Enquiries are made to confirm, that there was no suppression of information at the time
of proposal. This is done both to ensure genuineness of the claim and to safeguard the
interest of the community of the policyholders.
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Additional Requirements in case of early claims:
Statement from the last medical attendant giving details of last illness, previous
history and treatment.
Statement from the hospital, in case the deceased life assured had received
hospital treatment.
If death was due to accident or unnatural causes, certified copies of post-mortem
report, police inquest report, panchnama report and magistrate’s/coroner’s
verdict.
Details of cremation or burial, place, time, witness, etc.
Statement from the employer about the leave, if any, taken by the life assured on
ground of sickness.
Presumption of Death:
Sometimes a person is reported missing without any information about his whereabouts.
The Indian Evidence Act provides, for presumption of death in case a person has not
been heard of, for 7 years.
If a nominee or assignee or legal heir contends that the life assured must be presumed to
be dead, it would be prudent to ask for a decree from the competent court that the assured
should be presumed dead. It is necessary that premiums are paid till date of the decree
presuming death of the life assured.
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9.2 Claims management
Claims philosophy
The claims philosophy should be clearly documented and communicated within the
syndicate, and reflected in the management and organisation.
Resources, skills and management controls
Managing agents should have appropriate claims resources, skills and management
controls in each line of business they propose to write.
Claims processes
Claims should be adjusted and processed in an efficient and timely manner.
Documentation
The handling of a claim should be appropriately documented and information relevant to
the management of the claim retained for a reasonable period.
Claim reserving
Claim reserving should be undertaken with the goal of a consistent, timely and accurate
result.
Management of external service providers
Disciplined procurement and pro-active management procedures should be employed in
the selection and use of third parties.
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Performance measurement
Measurement of claims management performance and capabilities should be appropriate
and regular.
Claims agreement for subscription business
For subscription business there should be an effective claims agreement process to
protect the interests of followers, supported by the full co-operation of lead underwriters.
Important information regarding the application of these
standards
Important information relevant to the claims management standards
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9.3 Process of Claims Settlement:
9.3(a) Process of claim settlement at SBI Life:
Process Flow- Chart at Processing centre
SBI Life’s Claims Policy:
All genuine claims are paid accurately and within the stipulated time
Using technological innovations to improve upon the claims management
processes.
Establishment of effective Grievance Redressal Mechanism.
Employees take up ownership of processes and internalize the quality
management system
Fraudulent claims are detected in real time to minimize damage caused by such
claims.
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Mails by Poast
Initial ScrutinyReceive documents and put
Provide FeedbackOn scrutinizing the documents, aid customer in filling the forms.
MIS UpdatingUpdate excel sheet as well as claims register with AWB No.
Forward To CPCSend the entire set to CPC by EOD for
processing
SEN REQUIREMENT LETTERIssue a letter for basic requirement
along with Claim Form.
Claims RequirementCheck for the requirement raised by CPC on the claim from Zonal MIS updated in
Myspace
Follow-Up Pending CasesAll pending cases can checked in the MIS uploaded in Myspace and followed-up
accordingly
Branch Intimation RegisterEnd of each month a Branch Intimation Register sent to CPC containing all claims
intimidated at PC/MPC.
UPDATION OF MISIf MIS at My Space shows Paid or Repudiated, then the status is updated in the Claim
Register with PC.
Walk in customer Claim Intimation
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9.3(b) Process of Claims Settlement at other Companies:
ICICI Prudentials:
Claim intimation/ notification form:
The claimant can get a claim intimation/ notification form from the nearest local branch
office of the insurance company or their insurance advisors /agents. Some insurance
companies also provide the facility of downloading the form from their websites.The
claimant must submit the written intimation as soon as possible to enable the insurance
company to initiate claim processing. The claim intimation should consist of basic
information such as policy number, name of the insured, date of death, cause of death,
place of death and name of the claimant.
Documents required for claim processing:
The claimant will be required to provide a claimant's statement, original policy document,
death certificate, police FIR and post-mortem examination report (for accidental death),
certificate and records from the treating doctor/ hospital (for death due to illness) and
advance discharge form for claim processing. Based on the sum at risk, cause of death
and policy duration, insurance companies may also request some additional documents.
Submission of required documents for claim processing:
For faster claim processing, it is essential that the claimant submits complete
documentation as early as possible since a life insurance company will not be able to take
a decision until all the requirements are complete. Once all relevant documents, records
and forms have been submitted, the life insurer can take a decision about the claim.
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Settlement of claim:
As per guidelines of the Insurance Regulatory and Development Authority (Irda), the
insurance company is required to settle a claim within 30 days of receipt of all
documents. However, the insurance company can set a practice of settling the claim even
earlier. Further, as per the IRDA, if the claim requires further verification, the insurance
company has to complete its procedures within six months of the date of receiving the
written intimation of claim.
Usually, the claimant is the nominee as appointed by the insured at the time of taking
policy or subsequently, but before, the occurrence of death claim. At times, the proposer
of the policy is different than the life assured. In such cases, the proposer receives the
claim settlement proceeds.
In case there is no nomination or the nominee is not alive, it becomes an 'Open Title'
situation. The life insurance company would then require the proof of title/ succession
certificate issued by a competent court. The claim would be paid to the person specified
in the proof. It is very important that the policyholder should provide nomination. It saves
the heirs, the inconvenience of time consuming court procedures at a claim stage. It is
important that premium payments are made regularly so that the insurance policy does
not lapse and the cover remains in force, thereby securing the family against any
eventuality.
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Birla Sun Life Insurance Company:
In case of unfortunate event of death of the Life Insured the following standard
requirements need to be submitted:
Death certificate issued by Municipal Authority in specified format.
Original policy document
Claimant's Statement
In case the death has taken place outside India, the Claimant is also required to
submit 'Death Abroad Questionnaire'
Discharge form
Legal evidence of title where there is no nomination, assignment or the policy has
not been issued under Married Women's Property Act.
The Company may in certain conditions call for additional requirements as warranted.
Birla Sun Life Insurance may also have an investigation made into the bonafides of any
claim where it is considered necessary.
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II. Unnatural Death Claim
If a death of the LA is for any reason other than natural or due to illness, it is termed as
unnatural death claim. In such cases, the following additional documents need to be
submitted.
First Information Report
Post - Mortem Report
Police Inquest Report
Panchnama Report
In case of death due to accident, the above documents would be a necessity. News papers
cuttings (if any) may be submitted.
*NOTE: Attestation of all the above documents by Branch Head/ Relationship Manager.
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RELIANCE Life Insurance Company:
Documents required for Death Claims:
Claims form A: This form is filled by the nominee or claimant.
Claims form B: certificate of last illness to be filled, signed stamped by the doctor
in attendance during the last illness of the deceased life assured.
Original Policy Documents.
Original Death Certificate by Death and Birth Registrar.
Death Certificate by the doctor confirming cause of death.
Nominee photo identification card copy attested by Insurance Company Official.
All Hospital reports, if hospitalized during the last sickness.
Post Mortem Report and Viscera Report, if performed.
In case of Accident or Suicide:
Claim form C: Certificate of Identity, along with Claim forms A and B.
First Information Report and final Police Investigation Report.
News Paper cutting on the accident, if available.
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Bajaj Allianz Life Insurance Co.
When the death claim intimation is received from the claimant, the claims department has
to satisfy about certain requirements like
1. Whether the policy number pertains to its office i.e. whether their office issued
the policy.
2. If the policy is in full force as on the date of death or in a lapsed condition. If the
policy is in lapsed condition then the company does not have the liability to pay
any claim.
3. Who has intimidated the death, whether it’s the nominee, a near relative, also the
place, time and cause have to be clearly known to the company.
4. Whether claim time is barred. There is a two year limitation on the policy claim
from the time it is due. Incase the claim becomes time barred, there is no liability
attached to the company.
5. Investigation where it is found necessary by the company may take place to avoid
fraud.
6. The cause of death should be clearly ascertained. If it is due to natural cause and
the death occurred within two years of the date of the first premium receipt, early
claim investigation is necessary in order to ascertain whether there was
suppression or non-disclosure of material facts. In such a case, the liability stands
repudiated on account of non-disclosure/suppression of material facts.
7. If the death is unnatural, copies of FIR, police reports and court documents may
be necessary depending on the case. If it is an accidental case also, there has to be
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a careful examination of the case. If the death has been caused by intoxicating
liquors, drugs etc. chemical analyzer’s report will have to be insisted upon. If all
the requirements are satisfied and nothing is found be fraudulent, the company
can proceed further with the settlement.
8. Murder of the policy holder has to be dealt carefully. Whether it was long
standing enmity which resulted in murder. It cannot be treated as unnatural death
but viewed as an accident. In self provoked murder there is no double accident
benefit. Hence extra care is to be taken.
9. If a person is missing then a decree of court is to be obtained on or before the date
of maturity. Status of the policy will be as on the date of the court order drawing
the presumption of death. Claimant should approach the insurance company with
the courts decree. Hence where the policy holders’ body is found on the road,
railway track etc. payment of double accidental benefit cannot be considered
unless accidental death can be proved.
The claim is settled in this order:
Request made by the branch to HO Head office verifies the
documents approval given to branch sanctioned cheque handed
over to the concerned claimant.
The above is a computerized methodology and time to time events are updated by the
concerned authority.
It takes normally one month for the claim to be settled from the time of intimation. The
claim amount is sanctioned by the head office (Pune) and the cheque is sent to the
respective branch, where the customer service executive calls the customer by phone
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HDFC Standard Life Insurance Co. Ltd.
The claimant can intimate the company at any branch about the death claim through an intimation letter. Alternatively, he could fill in the death claim statement or critical illness disability claim information form. The intimation should ideally contain policy no./ name of the life assured, cause and place of death./ diagnosis/ disability. For a death claim the intimation should be done along with the death certificate issued by the Municipal Corporation and original policy document. For critical illness and disability claim the intimation should be done along with the copies of available medical records.
The company on receiving the intimation leter shall send a letter to the claimant. This letter will give the information that what all documents are required to process the claim and the relevant claim forms will be enclosed with this claim form.
Ideally the requirements should be submitted to the branch within 30 days from the receipt of letter.
All forms should be duly completed and signed by respective claimants and officials.
DOCUMENTATION
This has been divided into three categories.
For death claims under Pension plan/ savings assurance plan.
1. Death claim form2. Original policy document3. A copy of death certificate issued by Municipal Corporation.
For death claims for products apart from which were mentioned above:
Natural Death claims
1. Death claim form2. Original policy document3. A copy of death certificate issued by Municipal Corporation4. A copy of medical certificate cause of death.5. A copy of post mortem report if carried out.6. A copy of cremation or burial certificate.7. Legal evidence of title in case there is no nominee.8. A copy of FIR, Inquest report and final investigation report attested by police
authorities.
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9. A coy of post mortems report and chemical analysis (attested by hospital authorities)
10. A copy of valid driving license of the deceased.
The list of documents may vary from case to case
A copy of identification proof, residence proof of the beneficiary and the death certificate needs to be verified in original receipt of claim documents and copies of these have to be sent for processing.
The discharge voucher is revised to contain additional details of identification and bank details
After the death claim cheque has to be handed personally to the beneficiary without delay after proper identification
Once the decision to accept the claim is taken, the company will send the discharge voucher to the claimant. The claimant should it return it within seven days t the branch duly filled and signed
The company on receiving the discharge voucher issues the claims cheque. The claimant can collect the same from the branch office. He must carry a photo identity proof for verification purpose.
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9.4 Analysis of the data given by SBI Life
As the data provided by the organization is only for the Bihar and Jharkhand, the analysis
report is strictly for these two states.
The data has been provided for both individual claims and group claims.
The analysis has been done separately for individual claims and group claims.
First the Number of Policy issued in a year has been compared with the claims arisen in
that particular year.
This has been done for both Individual as well as Group Products.
Further the claims have been analysed on different basis, like age, duration of the policy,
sum assured and channels.
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New Business Vs Claims:
Individual Claims:
2007-08 2008-09
NOP: 38238 NOP: 50563
No. of Claims: 137 No. of Claims: 24
% Of Claims: 0.36% % Of Claims: 0.047
Here the table shows the percentage of claims to the NOP, i. e. Number of Policy issued in the particular year.
NOPNo.of claims
2007-08
2008-09
0
10000
20000
30000
40000
50000
60000
2007-08
2008-09
From the chart above it can be clearly interpreted that the percentage of claims are very less when compared to the Number of Policies issued.
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
NOP No.of claims
2008-09
2007-08
Further the percentage of claims are compared for two years, and observed that percentage of claims is higher in 2007-08.
The percentage death claim in year 2007-08 is 0.36% for individual business, which means out of 10,000 insured lives 36 are dieing prematurely.
Where as in the year 2008-09 the same has gone down to 0.047%, meaning 4.7 lives are dieing prematurely out of the 10,000 insured lives.
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Group Claims:
2007-08 2008-09
NOP: 58892 NOP: 90926
No. Of Claims: 08 No. Of Claims: 06
% Of Claims: 0.0136% % Of Claims: 0.0066%
Here the table shows the percentage of claims to the NOP, i. e. Number of Policy issued in the particular year.
NOPNo.of
claims
2007-08
2008-090
100002000030000400005000060000700008000090000
100000
2007-08
2008-09
From the chart above it can be clearly interpreted that the percentage of claims are very less when compared to the Number of Policy issued.
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0%10%20%
30%40%50%
60%70%80%90%
100%
NOP No.of claims
2008-09
2007-08
Further the percentage of claims are compared for two years, and observed that percentage of claims is higher in 2007-08.
As in individual business in group business too the incidence of premature death claims have improved from 1.36 lives out of 10,000 to just 0.66 lives out of 10,000 insured lives.The data shows consistency for both groups and individual claims. This states that either the quality of lives insured has been more standard in the year 2008-09 as compared to 2007-08, or the underwriting standards have improved over the last one year.
It may be pointed out that the underwriting of only FMR cases has been delegated to PCs from CPC from Jan 2008 onwards.
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For individual claims:
Age wise categorization
0-17 18-30 31-40 41-50 51-60 60above
30 69 95 144 198 53
5% 12%
16%
24%
34%
9% 0-17
18-30
31-40
41-50
51-60
60above
Here we can see that most of the claims falls in the age group of 51-60, followed
by the age group 41-50.
Total number of claims is 589, out of which 198 are from the age group 51-60.
33% claims are from age group 51-60.
24% claims are from age group 41-50.
So more than 50% claims are from the age 40 above but below 60.
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Reasons for these findings can be:
Non medical cases.
Quality lives are not being insured.
The health conditions pertaining to these age group may not be good.
The no. of claims are less in the age group 60 above, this is due to the several
safeguards while accepting a proposal.
The other reason for so large number of claims may be due to the number of
proposal are high in the said age group.
0-17 81-30 31-40 41-50 51-60 60 above
Early Claims 28 64 87 122 172 51
Non Early
Claims 2 5 8 21 23 2
65
28
64
87
122
172
51
2 5 821 23
20
20
40
60
80
100
120
140
160
180
200
0-17 81-30 31-40 41-50 51-60 60above
Early Claims
Non Early Claims
Here the claims have been further categorized in early and non early claims.
The bar- graph clearly shows that numbers of early claims are more than non
early claims in all the age groups.
Non early claims are very minimal.
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28
2
64
5
87
8
122
21
172
23
51
2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0-17 81-30 31-40 41-50 51-60 60 above
Non Early Claims
Early Claims
The above chart shows the percentage of early and non early claims in each age groups.
In the age group 0-17 only 6.67 %of the claims are non early.
93.33% of the claims under age group 0-17 are early claims.
In age group 18-30, 7.24% are non early and 92.75% of claims are early claims.
In the age group 31-40, 8.42% claims are non early and 91.58% claims are early
claims.
In age group 41-50 14.68% claims are non early, where as 85.31% claims are
early claims.
In the age group 51-60, 11.79% of claims are non early, and 88.20% of claims are
early claims.
In the age group 60 above only 3.77% of claims are non early claims and 96.22%
claims are early claims
67
Reasons for these findings can be:
Non medical cases.
Quality lives are not being insured.
The health conditions pertaining to these age group may not be good.
The no. of claims are less in the age group 60 above, this is due to the several
safeguards while accepting a proposal.
The other reason for so large number of claims may be due to the number of
proposal are high in the said age group.
Even in case of age group 60 above early claims are more which means no proper
safeguard has been taken during the issue of policy
Channel wise categorization:
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Channel
Agency Bancassurance Corporate agent
409 180 15
68%
30%
2%
Agency
Bancassurance
Corporate agent
Here the pie chart depicts that most of the business is from the agency channel,which is
followed by the bancassurance and very few are business come from corporate agents.
Agency % Bancassurance % Corporate Agent
69
Early Claims 362 89.16 161 90.44 15 100
Non Early
Claims 44
10.84
17
9.55
0 0
362
161
1544
170
0
50
100
150
200
250
300
350
400
Agency Bancassurance Corporate Agent
Early Claims
Non Early Claims
Further the claims are categorised into early and non early claims.
From the graph above it is clear that that in all the channels early claims are much more
than non early claims.
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362
44
161
17
15
0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Agency Bancassurance Corporate Agent
Non Early Claims
Early Claims
in the above diagram the percentage of early and non early claims are shown.
In case of agency channel 89.16% of the claims are early claims, and only 10.84%
are non early claims.
In bancassurance 90.44% of claims are early claims and 9.55% are non early
claims.
In corporate agent channel all the claims are early claims.
Reasons for these findings can be:
The main reason for 100% early claims in case of corporate agent is, the channel
has been newly started so if there’s any claim that will fall in the category of early
claims.
The agency channel brings more business hence the number of claims will also be
large , but when we see the percentage of early claims of both agency and
bancassurance both are almost same, it shows that selection of life is adverse by
both the channels.
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Sum Assured wise categorization:
Sum Assured
Up To 1 lakh
100001-
300000
300001-
500000
500001-
700000
700000
above
267 263 35 9 15
44%
45%
6% 2%3%Up To 1 lakh
100001-300000
300001-500000
500001-700000
700000 above
The pie chart shows that the most of the claims arises for the smaller sum assured.
Most of the claims are for up to Rs.300000/-, it shows that SBI Life is selling small ticket
policy in Bihar and Jharkhand.
The other reason for lesser number of high sum assured claims are, that there are several
safeguards for higher sum assured.
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Up To 1 lakh
100001-
300000
300001-
500000
500001-
700000
700000
above
Early Claims 232 234 34 9 15
Non Early
Claims 34 25 1 0 0
232 234
34
9 1534
251 0 0
0
50
100
150
200
250
Up To 1lakh
100001-300000
300001-500000
500001-700000
700000above
Early Claims
Non Early Claims
Percentage Table
Up To 1 lakh
100001-
300000
300001-
500000
500001-
700000
700000
above
Early Claims 87.21 90.34 97.14 100 100
Non Early
Claims 12.78 9.65 2.85 0 0
73
232
34
234
25
34
1
9
0
15
0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Up To 1lakh
100001-300000
300001-500000
500001-700000
700000above
Non Early Claims
Early Claims
Here we can see that in all the group of sum assured percentage of early claims are very
high.
In the case of sum assured up to Rs.1000000/- 87.21% claims are early claims,
and only 12.78% of claims are non early claims.
In case of sum assured of Rs.100001-300000/- 90.34% of claims are early claims,
and 9.65% of the claims are non early.
In the third group of sum assured, i.e., Rs.300001-500000/- 97.14% of claims are
early claims and 2.85% of claims are non early claims.
In the group fourth and fifth i.e. above Rs.500000 all the claims are early claims.
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For all the above factors as a whole we can see that numbers of early claims are more in
each group. The main reason behind this can be that the company has grown in a sizable
manner only after the year 2004, so whatever claims are arising they are mostly falling
under early claims.
But we cannot assume that the above said reason is the main cause of the large number of
early claims. The reason could be that the selection of lives is more unfavourable to the
company as the incidents of early claims are more for each groups categorized.
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Group Claims:
Age wise categorization:
Age
group 18-30 31-40 41-50 51-60 60 above
No. of
claims 34 53 193 188 4
7%11%
41%
40%
1%
18-30
31-40
41-50
51-60
60 above
Here we can see in the pie chart in groups products most of the claims arises in the age
group 41-50, which is followed by age group 51-60.
18-30 31-40 41-50 51-60 60 above
Early Claims 29 38 140 149 4
Non Early
Claims 5 15 53 40 0
76
2938
140149
4515
5340
00
20
40
60
80
100
120
140
160
18-30 31-40 41-50 51-60 60 above
Early Claims
Non Early Claims
Further the claims has been categorised in early and non early claims.
Here we can see that the numbers of early claims are more in every age group.
The main reason for this is that SBI Life has grown in sizable manner only after
the year 2004, so if the claims arises they mostly fall in the category of early
claims.
77
29
5
38
15
140
53
149
40
4
0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
18-30 31-40 41-50 51-60 60 above
Non Early Claims
Early Claims
In the above graph we can see that percentage of early claims are higher in each age
group.
Channe
l Bancassurance GroupCorporate
INSTITUTIONAL
ALLIANCE
No. of
Claims 455 2 29
78
94%
0% 6%Bancassurance
GroupCorporate
INSTITUTIONALALLIANCE
It is clear from the pie chart that large number of business is done through the
bancassurance channel.
Few are done with the Institutional Alliance and just the nominal are done through Group
Corporate.
The main reason for this is that the channel has been newly introduced.
Bancassurance
Group
Corporate
Institutional
Alliance
Early Claims 343 2 3
Non Early
Claims 112 2 0
79
343
2 3
112
2 00
50
100
150
200
250
300
350
400
Bancassurance Group Corporate InstitutionalAllaince
Early Claims
Non Early Claims
In the above graph only bancassurance channel is visible.
In the other channels, i.e., Group Corporate and Institutional Alliance claims are
very less, this is due to the reason that the number of business is very less in these
two channels.
The less numbers of policy leads to less number of claims, and this is due to the
reason that the channel has been newly introduced.
80
343
112
22 300
50
100
150
200
250
300
350
400
450
500
Bancassurance Group Corporate Institutional Allaince
Non Early Claims
Early Claims
In the above graph the percentage of early and non early claims are are shown.
It can be clearly observed that the percentages of early claims are higher in
bancassurance and Institutional Alliance, but in case of Group Corporate it is
equal.
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10. INFERENCES
While analyzing the data for the death claims of Bihar and Jharkhand, it was found that
most of the claims are EARLY CLAIMS.
The main reason for large number of early claims in all categories is that even though
SBI Life got registered in 2001, the company has grown in a sizable manner only after
the year 2004.
The high number of business comes through agency channel.
If we analyse the data sum assured wise, it is found that SBI Life, specially in Bihar and
Jharkhand mostly sells small ticket policies.
It has also been found out that quality life is not being insured in the region of Bihar and
Jharkhand by SBI Life.
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11. SUGGESTIONS:
Medical test should be compulsory from the age of 40.
As observed during the analysis most of the claims falls under the age group 41-50 and
51-60.
Above 60 cases are less, this is because the medical is compulsory.
Special scrutiny should be done if insuring lives of rural areas, and female lives.
INSURABLE INTEREST to be considered as major factor while issuing a policy.
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References:
www.google.co.in
www.irda.co.in
www.onlinesbilife.com
Insurance Plus Magazine
e-bandhan celebrate life, a bimonthly in-house magazines of SBI Life Insurance