Detailed Study of Insurance and Performance Evaluation of BSLI

EXECUTIVE SUMMARY

Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment managers of Birla Sun Life

Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life Financial Services Inc.

of Canada. The joint venture brings together the Aditya Birla Group's experience in the Indian market

and Sun Life's global experience.

Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading flagships of

Mutual Funds business managing assets of a large investor base. Our solutions offer a range of

investment options, including diversified and sector specific equity schemes, fund of fund schemes,

hybrid and monthly income funds, a wide range of debt and treasury products and offshore funds.

Birla Sun Life Asset Management Company has one of the largest team of research analysts in the

industry, dedicated to tracking down the best companies to invest in. BSLAMC strives to provide

transparent, ethical and research-based investments and wealth management services.

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INTRODUCTION TO INSAURANCE

Definition

There can be two approaches for defining insurance. One is functional approach other is contractual

approach.

Functional Definition

According to Encyclopedia Britannica,‖ Insurance may be defined as a social device where by a large

group of individuals through a system of equitable contribution, may reduce or eliminate measurable risk

of economic loss common to all members of the group

Contractual Definition

According to Justice Tindall, “Insurance is a contract in which a sum of money is paid to the assured in

consideration of insurer‘s incurring the risk of paying a large sum upon a given contingencies.”

 The risk becomes insurable if the following requirements are compiled with:

The insured must suffer financial loss if the risk operates

The loss must be measurable in money.

The object of the insurance contract must be legal.

The insured should have sufficient knowledge about the Risk he accepts.

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FUNDAMENTAL PRINCIPLES

The fundamental principles are:-

1. The Principle of Utmost Good Faith:-

The principle of utmost good faith, uberrimae fides (in Latin), literally

means perfect good faith or abundant good faith. The phrase is used to express that aninsurance contract

must be in perfect good faith concealing nothing. The principle is mostly discussed in the context of the

duty of the insured towards the insured, though it is equally applicable to the insurer‘s duty towards the

insured.

From the point of view of the insured, the principle of utmost good faith could formally be defined as _A

positive duty to voluntarily disclose, accurately and fully all facts material to the subject matter being

proposed, whether requested or not.

2. The Principle of Indemnity:-

The principle of indemnity, as applicable to general insurance policies, means that the policyholder, after

experiencing a loss, is before the loss. The policy indemnifies him or guarantees that he would be

insuring his assets and recovering more than the loss. This is possible since the economic value of

an asset at the time of the loss as well as the extent of loss can be determined and compensation payable

determined accordingly.

In case of life insurance, however, the economic value of a human life

cannot be measured precisely before death. It could in a fact be unlimited. Hence, lifeinsurance cannot

strictly be a contract of indemnity. This does not, however, mean a person can be granted life insurance

for an unlimited amount.

3. The Principle of Insurable Interest:-

The third major principle of insurance is that of insurable interest. The existence of insurable interest ‘is

an essential ingredient of any insurance contract. Insurable interest is the legal pre-requisite for

insurance.’

A common definition used for insurable interest is “the legal right to insure arising out of financial

relationship, recognized under law, between the insured and the subject matter of insurance.”

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It can be seen that insurable interest has three essential elements:

i. There must be properly, right, interest, life or potential liability capable of being insured.

ii. Such property, right, interest, life or potential liability must be the subject matter of insurance.

iii. The insured must bear a legal relationship to the subject matter such that he stands to benefit

by the safety of the property, right, interest, life or Freedom of liability. By the same token, he

must stand to lose by any loss, damage, injury or creation of liability.

4. The Principal of Subrogation:-

This is the forth principle that is peculiar to general insurance. Subrogation is the legal right of the

person who has paid for the damage caused by another to recover that money from the ship-owner.

Subrogation is thus the right of the insurance company that pays the claim to recover the same from

those who are responsible for causing the loss. Contribution, in fact, is a corollary of the principle of

indemnity.

5.  Principle of Contribution:-

The fifth principle that is peculiar to general insurance is Principle of contribution. Contribution, again, is

a corollary of the principle of indemnity. Contribution implies that if the same property is insured with

more than one insurance company, the compensation paid by all the insurers together cannot exceed the

actual loss suffered. That is all the insurers would together indemnify the policyholder for the loss

suffered and no more. If he were to collect insurance money from all the insurance for the full value, this

would violate the principle of indemnity, as he would make a profit the loss.

Life Insurance

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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 insured's demise. 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 person’s life. The insurer (the life insurance company) calculates the policy

prices with 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 5

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.

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 premiums will 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. 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 families

(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. 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.

BIRLA SUN LIFE INSURANCE

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COMPANY PROFILE

Birla Sun life Insurance

Corporate office-| employees- 133000+

Business- financial services | Establishment- 2000

Website- www.birlasunlife.com

Details- It is financial and insurance company, a joint venture of Aditya Birla and Sun life insurance.

Company offers life insurance products including health, wealth and retrial plans.

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

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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. 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.

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. 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 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 in charge 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

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the grassroot level and create trust. We therefore now have two strong connects — our parent brand Birla

and our brand Ambassador Kapil Dev".

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 participates.

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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 endeavor 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

Achievements of BSLI

1st to introduce ULIP fund options.

1st to launch illustrations so that customers understand the products better before they buy.

1st to issue NAVs of funds for better transparency.

1st to disclose portfolio on a monthly basis.

1st to introduce “Free Look Period” and the same was made mandatory by IRDA for all other Life

Insurance Companies

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YEAR AWARDD FROM TITIE

2011 Golden Peacock Global Awards Secretariat Golden Peacock Award

2011 Internet Advertising Competition

(IAC)Awards 2011

Best Insurance Integrated ad

campaign (Not Jobs But

Passion campaign)

2011 Advertising Agencies Association of India &

Advertising Club Bombay

Bronze - Media Abby

Awards at Goa Fest 2011 as

Best Never Before use of

Media

2011 Advertising Agencies Association of India &

Advertising Club Bombay

Gold - Creative Abby

Awards at Goa Fest 2011 as

Direct marketing

Dimensional Mail

2010 APPIES 2010 - Asia Pacific Advertising &

Marketing Congress

Silver Medal & a letter of

appreciation for - Wealth

with Protection Solutions

campaign

2010 14th Annual Webby Awards 2010 Official Nominee - BSLI

Email marketing campaign

'Save Forest'

2009 Institute of Chartered Accountants of India

(ICAI)

ICAI Awards for Excellence

in Financial Reporting -

Silver in Insurance Category

2004 Outlook Money Awards 2004 Recruiting and Staffing Best

in Class Awards

2004 Outlook Money Awards 2004 Best Life Insurer (Runner

Up) 2004 TROPHY

2005 The Indo-Canadian Business Chamber 'Successful Performance' for

4 years April 2005

2005 The Mayor, David Miller - Toronto A letter sent to BSLI - A

Message

2004 Asia Insurance Review Sponsorship

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Acknowledgement for - The

Asia Insurance Review

2012 The Institute of Chartered Accountants of India

(ICAI

'Gold Trophy' for Financial

Reporting

2012 The South Asian Federation of Accountants

(SAFA)

'Best Presented Accounts &

Corporate Governance

Disclosures Awards

2012 Golden Peacock Award Excellence in Corporate

Governance

2012 Effies Gold in the 'Services

category'

2012 Kaan awards Best use of Radio

2012 Asian Confederation of Businesses Best Employer Brand Award

2012 Golden Peacock HR Excellence Golden Peacock HR

Excellence Award

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SWOT ANALYSIS

STRENGTH:

Multi-channel distribution and one of the largest distribution 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 as well as good number of HNI

advisors.

Training process of the company is very strong.

Different plan for different peoples

According to the change in surrounding environment like 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 its horizon in insurance

industry.

Though good investment and insurance it is easy to top Indian 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’: It’s 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.

Plans for all income groups are not available which can create adverse effect

later on the market share of the company.

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DETAILS OF PRODUCTS

Individual Life

   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

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  Single Premium Bond

   Retirement

  Flexi Secure Life Retirement Plan II

   Children

  Children's Dream Plan

   Rural

  Bima Kavach Yojana

   Riders

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  Accidental Death and Dismemberment Rider

  Term Rider

  Critical Illness Rider

  Waiver of Premium

  Critical Illness Plus Rider

  Critical Illness - Woman Rider

Retirement

Our Retirement Plans allow you to meet your expenses and build a nest egg, which

gives you the freedom to live life to the fullest even after retirement.

The post retirement years can be the best years of your life. Time to do things you couldn't have done

while you were working. A right financial planning makes your post retirement years truly golden. Our

Sun Life secure Life II assures you just that.

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Birla Sun Life Insurance Co. Ltd

Following are the Life Insurance plans that Birla Sun life Insurance Company Ltd.

1.)Birla Sun Life Insurance Term Plan - This plan can take care of your financial

commitments of yours towards your family by providing large cover at low cost. Minimum age of

entry for this plan is 18-55 and maximum maturity age is 70 years.

2. Birla Sun Life Insurance Premium Back Term Plan - This is a low cost life cover

promises you to refund the entire premium on maturity or death. Two options are also there to

choose 100% premium back or 125% premium back. Maximum term period for this plan is 20 years.

3. Birla Sun Life Insurance Guaranteed Bachat Plan - It’s a non-participating

endowment plan offers you guaranteed returns and chance to earn survival benefit from the 3rd year

onwards. You can withdraw this benefit each tear or can use it as to pay the premium dues.

4. Birla Sun Life Insurance Money Back Plus Plan - This is also a non-participating

endowment plan, which gives you maturity and survival both benefits. One remarkable point is

that on every policy anniversary it increases your cover by an equal amount of your base premium.

5. Birla Sun Life Insurance Gold-Plus II - It’s an investment plan offering nine-funding

option to choose and 100% equity fund option also. Free unlimited switches are given to you to

manage your investments. This plan offers good liquidity to you.

6. Birla Sun life insurance Platinum Plus - It is a unit linked, non-participating insurance

plan. In this plan, the investment risk is borne by the policyholder but not if this policy is detained

till maturity.

7. Birla Sun Life Insurance Saral Jeevan Plan - In today’s fast life it’s really easy to buy

an insurance plan, which you immediately can purchase just by providing three health statements to

the company. Bsli Saral Jeevan is the best option to go for.

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8. Birla Sun Life Insurance Supreme-Life - It’s a unit linked non-participating plan

providing 8-fund options to choose. It gives a choice of two death benefits.

9. Birla Sun Life Insurance Dream Plan - It’s a unit-linked policy, which provides you

guaranteed returns, 0% allocation charges, and option to double or triple the guaranteed maturity.

10. Birla Sun Life Insurance Classic Life Premier - It will give you guaranteed

additions in the form of guaranteed units and a good choice of 8 investment funds are also there.

You are free to choose the term period of 10, 20, 30 or whole life.

11. Birla Sun Life Insurance Simply Life - It ensures a lifetime of tax-free investments to

fulfill the needs of your dear ones. It’s a market related plan provides you a good death benefit

amount.

12. Birla Sun Life Insurance Prime Life Premier - It’s a single time investment with top

up options. It keeps you hassle free and provides you guaranteed returns at regular intervals.

13. Birla Sun Life Insurance Prime Life - It is a single premium policy gives you the

benefit of life insurance and investments as well. It’s a non-participating ULIP policy.

14. Birla Sun Life Insurance Flexi Cash Flow - For this policy you can pay lump sum

premium payment at regular intervals. It will give you 3% guaranteed returns on net policy

charges.

15. Birla Sun Life Insurance Flexi Save Plus - This plan will give you the choices

of 3 fund options, maturity ages & guaranteed returns of 3%.

16. Birla Sun Life Insurance Flexi Life Line - This would provide you a lifelong cover

till 100 years of age and will give you the option of tax-free partial withdrawals.

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17. Birla Sun Life Insurance Single Premium Bond - This plan gives you the opportunity

to make one time investment with no medical tests and will also give you the facility of high entry

age. It’s a short term investment plan provides you the option of 5 years or 10 years term period.

18. Birla Sun Life Insurance Freedom 58 - It’s a non- participating ulip plan. It helps

you accumulate your premiums and the investment return thereof into a corpus of your

retirement.

19. Birla Sun Life Insurance Flexi Secure Life Retirement Plan II - This will

provide you the option to take a life cover or not. You can choose your retirement age yourself

whether you want to prepone/postpone it.

20. Birla Sun Life Insurance Children's Dream Plan - It’s a unit-linked policy, which

provides you guaranteed returns, 0% allocation charges, and option to double or triple the guaranteed

maturity.

Various Plans offered by LIC are as follows:

Endowment Assurance Plans

1. Jeevan Amrit: This plan is designed for a higher cover at a lower cost. In this plan premium

payment is limited to 3 or 4 or 5 years and the premium payable during the first year is higher than the

premiums payable in subsequent years.

2. New Janaraksha Plan: Is an Endowment Assurance plan that provides financial protection

against death throughout the term of plan. It pays the maturity amount on survival to the end of the term.

3. Jeevan Mitra (Double Cover Endowment Plan): Is an endowment plan which takes care of

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the financial needs even if death of the policyholder for the whole term of the plan.

4. Jeevan Mitra (Triple Cover Endowment Plan): Is an endowment plan where thrice the

Sum assured plus all bonuses on the basic sum assured to date is payable in a lump sum upon the death

of the life assured.

5. The Endowment Assurance Policy: This policy has provisions for the family of the Life

Assured in event of his early death and also assures a lump sum at a desired age.

6. The Endowment Assurance Policy-Limited Payment: In this policy the payment of

premium can be limited either to a single payment or to a term shorter than the policy.

Children Plans

1. Jeevan Anurag: Is plan designed for the children educational requirements. This plan can be taken

on the parent’s life. The basic sum assured is given immediately on the death of the life assured during

the term of the policy.

2. Jeevan Kishore: Is a plan which can be availed by the parent or grandparents of the children. It is

an endowment assurance plan for children of less than 12 years of age.

3. Jeevan Chhaya : It is a plan where financial protection is given against death during the term of

the plan. It is an Endowment Assurance plan. Besides this benefit one-fourth of Sum Assured is payable

at the end of each of last four years of policy term irrespective if the life assured dies or survives the

duration of the policy.

4. Komal Jeevan: Is a Money Back Plan which can be bought by the parent or grandparent for their

child from the age of 0-10years. This plan gives financial protection against death during the duration of

the plan with periodic payments on survival at specified durations.

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5. Child Future Plan: A policy where the future needs like education, marriage and other

requirements are taken care of. This plan provides a benefit which not only takes care of the risk cover of

the child during the policy but also after 7 years of the policy being expired.

6. Child Career Plan: A plan to meet the educational and other needs of the child. It provides the

risk cover on the life of child during the policy term as well as 7 years after the policy has expired. There

are also Survival benefits given to the life assured at the end of a specific duration.

7. Child Fortune Plan: Is a unit linked plan which offers long term capital appreciation.

8. Marriage Endowment Or Educational Annuity Plan: This is an Endowment Assurance

plan that provides for benefits on or from the selected maturity date to meet the Marriage/Educational

expenses of the named child.

Money Back Plan

1. Bima Bachat: Is a money-back policy which offers financial security and assurance to the policy

holder and his family. The policy holder has to pay only one premium.

2. Money Back-20 years: Is an endowment plan where periodic payments of partial survival

benefits are paid during the term of the policy till the policy holder is alive. As the policy name goes this

plan 20% of the sum assured is payable after 5, 10, 15 years and the balance 40% accrued bonus is

payable at the 20th year.

3. Money Back 25 years: Is the same as the above plan only in this plan the 40% accrued bonus is

payable at the 25th year.

Pension plans

1. New Jeevan Dhara - I: is a Deferred Annuity plans that allows the policyholder to make

provision for regular income after the selected term.

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2. New Jeevan Suraksha - I: Is a deferred annuity plan.

3. Jeevan Nidhi: Is a deferred annuity plan with profits.

4. Jeevan Akshay - VI: By paying a lump sum amount this immediate annuity plan can be bought.

Unit Plans

1. Child Fortune Plus: Is a plan for children and to meet their educational needs. It’s a unit linked

plan with long term capital appreciation.

2. Fortune Plus : It is a unit linked assurance plan where premium payment term (PPT) is 5 years and

the premium payable in the first year will be 50% of total premium payable under the policy.

3. Market Plus: Is a unit linked pension plan where after a specific period the pension is paid.

4. Money Plus - I: Is a unit linked Endowment plan which has investment plus insurance during the

term and you can pay regular premiums.

5. Profit Plus : It is a unit linked Endowment plan where the premium payment term (PPT) is limited

to single lump sum, or uniformly over 3, 4 or 5 years.

Whole Life Plans

1. Jeevan Anand: Is a combination of two plans- Endowment Assurance and Whole Life plan.

2. Jeevan Tarang: This is a with-profits whole of life plan which provides for annual survival benefit

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at a rate of 5½ % of the Sum Assured after the chosen Accumulation Period.

3. The Whole Life Policy: Is a plan mainly to provide for payment of sum assured plus bonuses on

the death of the policyholder.

Golden Jubliee Plan

New Bima Gold: Where the premiums are paid back during the policy term in installments, besides

that life insurance cover is given during the also at the extended term of the plan.

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PRODUCTS

Life is unpredictable. But in face of adversity, our responsibilities towards

our parents, children and loved ones need not be compromised. Insurance

planning equips you to smooth out the uncertainties and adversities that life

might send your way, so that it offers a complete range of insurance products.

1. Protection Plans

2. Savings Plans

3. Child Plans

4. Investment Plans

5. Retirement Plans

6. Group Plans

7. Rural Plans

8. Plans for NRIs

9. Key man Plans

10. Riders

Protection Plans

Insurance Plans

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BSLI offers Life Guard - a set of pure protection plans. Choose from

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

On death the entire sum assured will be paid.

No survival or maturity benefits.

You can also enhance the above two policies by adding Accident & Disability

Benefit Rider and Waiver of Premium Rider (WOP) . Level Term Assurance -

Single premium:

On death the entire sum assured will be paid.

  No survival or maturity benefits

Savings Plans

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BSLI offers a variety of policies that give you the benefits of protection

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

car or a wedding.

A regular premium unit-linked insurance plan with an assurance of Capital

Guarantee# with the added advantage of flexible liquidity option. An ideal

plan for long term planning with the benefit of liquidity.

The key features of the plan are:

Flexibility to choose a specific level of protection (Sum Assured),

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

term of the plan.

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

maturity term of 10, 15 or 20 years respectively.

Flexibility to choose a specific level of protection (Sum Assured),

based on a multiple of the annual premium.

At the end of the term, 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.

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.

Additional credits payable as a percentage of the initial 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.

Flexibility to make additional 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. **

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Total transparency with the premium allocations, and other charges

declared upfront.  

The guaranteed value of the unit fund is the value of all invested

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

interests.

Total transparency with the premium allocations, and other charges declared

upfront.

The capital guarantee is applicable only on the invested premium and

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 it is 15 years or more.

You can also enhance your policy by adding Accident & Disability Benefit

Rider, Waiver of Premium 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 is a minimum

multiple of 1 and a maximum multiple of 25 times the annual 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 objective and

risk appetite.

Choice to switch between investments options (4 free switches every

policy year).

29

Flexibility to decrease your sum assured.

Add-on riders to protect you against any eventuality.

Loans against the policy.

Protection

Choose a specified level of protection (available only with Life Time).

Two levels of Sum Assured to choose from (available only with Life Time

II).

Flexibility to increase or decrease your sum assured .

Add-on riders to protect you against any eventuality.

Savings

Flexibility to increase or decrease your contribution.

Facility of Premium Holiday, wherein the policy continues even if there is

a temporary break in the payment of annual contribution (available only

with Life Time).

Facility of Automatic Cover Continuance, wherein the policy 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 objective and

risk appetite.

30

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

Benefit Rider  (available only with Life Time) and Waiver of Premium Rider

.

An insurance plan that gives added protection, savings and multiple 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.

The flexibility of shifting 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 protection, savings, multiple

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 flexibility of shifting 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.

31

The flexibility 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: Guaranteed additions @ 3.5% of the Sum Assured,

compounded annually for the first 4 years of the policy.

Extended Life Cover: An extended cover for 5 years after the maturity of

the policy, for 50% of the sum assured, at no extra cost.

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

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

Death Benefit: The beneficiary receives the sum assured, the guaranteed

additions and the vested bonuses in case the life assured were to meet with

an unfortunate event. In case the life assured is aged 7 years or less, the

basic premium paid will be returned.

32

As a responsible parent, you will always strive to ensure a hassle-free,

successful life for your child. However, life is full of Uncertainties and even

the best-laid plans can go wrong. Here’s how you can give your child a 100%

safe and assured tomorrow, whatever the uncertainties. Smart Kid is

especially designed to provide flexibility and safeguard your child’s future

education and lifestyle, taking all 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

All these plans offer you:

Financial Benefits: Regular payments at critical stages in your child’s

life, like Board examinations, Graduation and Post-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.

Child Plans

33

Policy benefits continue: The educational benefits of the policy

continue, ensuring that your child can realize his or her dreams without

any hassles.

Development Allowance: Smart Kid guarantees regular income to

secure your child’s educational career and also ensures his or her all-

round development, for a nominal additional amount. The Income

Benefits Rider takes care of this through an annual payment of 10% of

the sum assured, to your child, till the maturity of the policy, in the

unfortunate event of the death of the parent.  All Smart Kid plans can be

enhanced with the Accident & Disability Benefit Rider and Income

Benefit Rider .

34

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

insurance policy with the opportunity of enjoying high returns on your

investments, without the market risks compromising on the 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 will receive higher of the value of units

or the initial death benefit, less any withdrawals.

Withdrawal Benefit: One can make partial withdrawals from the

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

Flexibility: Choose from four fund options, based on your investment

objective and risk appetite. If at a later stage your financial priorities change,

you can switch between the various fund options, absolutely free, 4 times a

year.

Investment Plans

35

Life Expectancy has been rising rapidly and today you can expect to live

longer than your earlier generations. For you, this increase will mean a longer

retirement life, stretching into a couple of decades. BSLI Retirement

Solutions that combine the best of insurance and investment. These solutions

are 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

Why plan for retirement?

For too many people, the joy of retirement after years of hard work is

eclipsed by the financial uncertainties that it brings. Despite all the planning

and saving, you can never sure whether your money will last a lifetime.

Retirement planning offers a way to ensure a more enjoyable, stress free

tomorrow. A prudent plan will ensure that increasing life expectancy, higher

inflation and increasing taxes do not eat away into your hard earned savings

How much must I set aside for retirement?

To ensure a comfortable retired life, you would be wise to invest money into

additional avenues like pension plans. How much you need to invest can be

answered by answering some questions such as:

1. How long do you have to save that amount before retirement?

2. Where can you invest your retirement money?

3. How much risk are you willing to take on your investments?

Retirement Plans

36

In an era of competitive parity, the only asset that makes a decisive

difference between corporate success and failure is the quality of human

capital. Employee benefits have proven to be an excellent tool to optimize the

retention of talent and improve an organization’s bottom-line. The quality of

an organization’s employee benefits establishes and maintains a company's

image as a caring employer. Optimum care of employees is a long-term

investment that results in a sustained competitive advantage for an

organization in the times to come.

BSLI Group Solutions Advantage:

An integrated basket of employee benefits solutions that offer

incomparable flexible benefits.

Sound investment management that focuses on safety, stability and

profitability of the portfolio.

Personalized financial planning for your employee that takes care of

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

Quality service initiatives and transparency across all operations,

promising superlative operational efficiency.

Group Term Assurance : Helps provide affordable cover to members of

a group.

Group Gratuity Plan : Helps employers fund their statutory gratuity

obligation in a flexible and hassle-free manner.

Group Superannuation Plan : A flexible scheme (defined benefit 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 based

on designation/rank or a multiple of salary, and can be extended to all

Group Solutions

37

employees between the ages of 18 and 65 years. The benefit under the policy

is paid on the event of the member’s death to the beneficiary nominated by

the member. It is a one-year renewable policy where one master 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 at any point during the policy term.

Group Gratuity Plan: BSLI group gratuity plan helps employers fund

their gratuity obligation in a scientific manner. Employers can avail of the

tax benefits as applicable to approved gratuity funds. The plan can also be

customized to structure schemes that can provide benefits beyond the

statutory obligations.

Group Superannuation Plan: BSLI Superannuation Scheme (for both

Defined Benefit and Defined Contribution funds) offers substantial benefits

to both employers and employees. The employer and employee can avail of

tax benefits applicable to an approved superannuation trust. The scheme will

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

would be able to choose from various annuity options or opt for partial

commutation of corpus at retirement.

38

BSLI Rural Products are designed to meet the needs of the rural consumers.

These products offer the following features:

1. Low and Affordable Premiums

2. Life Cover

3. Savings Option

4. Hassle free procedure

BSLI offers 2 specially designed rural plans.

a) BSLI – Endowment Plan

b) BSLI - Regular Premium

BSLI Endowment Plan:

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:

Rural Plans

39

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

NRI Plans:

Plans for NRIs

40

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

security of your loved ones. In fact, your savings from your time overseas can

be easily canalized to meet your family's needs - now and in the future. So,

whether it’s your dream to retire in your hometown; to 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.

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.

FINANCIAL STATEMENT OF BIRLA SUN INSURANCE

REVENUE STATEMENT

41

Form L-1- A- RA

Birla Sunlife Insurance Company LimitedRegistration Number: 109 dated 31st January 2001

Condensed Revenue Account for the quarter ended 30th June, 2013Policyholders' Account (Technical Account)(Amounts in thousands of Indian Rupees)

Audited Audited

Particulars FormQuarter ended

30 t h Jun e 201 3 Quarter ended

30 t h J un e 201 2

Premiums earned - Net(a) Premium L-4 9,212,639 11,303,238(b) Reinsurance ceded (350,992) (347,939)(c) Reinsurance accepted - -

Sub - Total 8 , 861 , 64 7 10 , 955 , 29 9

Income from investments(a) Interest, Dividend & Rent - Gross 3,032,684 3,036,709(b) Profit on Sale / Redemption of Investments 2,457,377 1,801,549(c) (Loss) on Sale / Redemption of Investments (2,367,366) (2,169,898)(d) Transfer/Gain ( Loss) on revaluation / Change in Fair value 2,090,518 894,029(e) Gain / (Loss) on Amortisation ( 737 ) ( 11 , 771 )

Sub - Total 5 , 212 , 47 6 3 , 550 , 61 8

Other Income(a) Contribution from the Shareholders' Account 851,699 752,316(b) Others (Interest etc.) 96 , 68 6 75 , 35 8

Sub - Total 948 , 38 5 827 , 67 4 Total (A) 15 , 022 , 50 8 15 , 333 , 59 1

Commission L-5 311,578 619,609Operating Expenses related to Insurance Business L-6 2,494,753 2,858,186Provision for doubtful debts - -Bad Debts written off - -Provision for Tax (including earlier years) - -Provision (other than taxation)(a) For diminution in value of investments (net) - -(b) Others - -

Total (B) 2 , 806 , 33 1 3 , 477 , 79 5

Benefits paid (Net) L-7 9,874,573 6,727,418Interim Bonuses Paid - -Change in valuation of liability in respect of life policies(a) Gross 1,173,695 1,109,193(b) Fund Reserve (186,183) 2,140,741(c) Premium Discontinuance Fund - Linked 904,164 410,349(d) (Amount ceded in Re-insurance) (896,582) (135,312)(e) Amount accepted in Re-insurance - -

Total (C) 10 , 869 , 66 7 10 , 252 , 38 9

Surplus (D) = (A) - (B) - (C) 1,346,510 1,603,407AppropriationsTransfer to Shareholders' Account 1,891,318 1,984,306Transfer to Other Reserve - -(Release from) / Transfer to Funds for Future Appropriation ( 544 , 808 ) ( 380 , 899 )

Total (D) 1 , 346 , 51 0 1 , 603 , 40 7

PROFIT AND LOSS ACCOUNT

Form L-2-A- PL

Birla Sunlife Insurance Company Limited

42

Registration Number: 109 dated 31st January 2001

Condensed Profit and Loss Account for the quarter ended 30th June, 2013Shareholders' Account (Non - Technical Account)(Amounts in thousands of Indian Rupees)

Audited AuditedQuarter ended Quarter ended

Particulars 30 t h Jun e 201 3 30 t h J un e 201 2

Amounts transferred from Policyholders' Account (Technical Account) 1,891,318 1,984,306

Income from Investments

(a) Interest, Dividend & Rent - Gross 280,115 231,794(b) Profit on sale / redemption of investments 63,883 9,282(c) (Loss) on sale / redemption of investments (7,361) (29)(d) Gain / (Loss) on Amortisation (1,413) (410)

Other Income - -Total (A) 2 , 226 , 54 2 2 , 224 , 94 3

Expense other than those directly related to the insurance business 19,119 1,136

Bad debts written off - -

Provision (other than taxation)(a) For diminution in the value of investment (net) - -(b) Provision for doubtful debts(c) Others(d) Contribution to the Policyholders' Account

--

851,699

--

752,316

Total (B) 870,818 753,452

Profit before taxProvision for taxation

1,355,724-

1,471,491-

Profit after tax 1,355,724 1,471,491

Appropriations(a) Balance at the beginning of the period (12,424,921) (13,762,293)(b) Interim dividends during the period(c) Proposed final dividend(d) Dividend distribution tax(e) Transfer to reserves / other accounts

----

----

Loss carried forward to Balance Sheet (11,069,197) (12,290,802)

Earning Per Share (Basic and Diluted), Face Value of Rs. 10 (in Rs.) 0.70 0.75

BALANCE SHEET

43

Form L-3-A-BSBirla Sunlife Insurance Company LimitedRegistration Number: 109 dated 31st January 2001

Condensed Balance Sheet as at 30th June, 2013(Amounts in thousands of Indian Rupees)

Audited Audited

ParticularsAs at

30 th Jun e 201 3 As at

30 th Jun e 201 2

Sources of FundsShareholders' funds:Share Capital 19,012,080 19,695,000Reserves and Surplus 3,089,075 4,800,000Credit/(Debit) / Fair Value Change Account 1 1 , 66 9

Sub - Total 22 , 101 , 15 6 24 , 496 , 66 9 Borrowings - -Policyholders' Funds:Credit/(Debit) Fair Value Change Account 2,087 2,701Policy Liabilities 20,577,473 15,292,701

Provision for Linked LiabilitiesFunds for discontinued policies(i) Discontinued on account of non-payment of premium

184,792,295

2,954,576

181,306,926

848,288

(ii) Others - -Credit/(Debit) Fair Value Change Account (Linked) 6 , 341 , 83 3 1 , 760 , 07 5

Total Linked Liabilities 194 , 088 , 70 4 183 , 915 , 28 9

Sub - Total 214,668,264 199,210,691Funds for Future Appropriation- Linked Liabilities 1,550,869 3,577,971

Total 238,320,289 227,285,331

Application of FundsInvestmentsShareholders' 11,958,326 11,677,587Policyholders' 23,110,589 20,232,713

Assets Held to Cover Linked Liabilities 194,088,704 183,915,289

Loans 278,953 231,780

Fixed Assets 310,440 377,658

Current AssetsCash and Bank Balances 4,150,652 4,435,829Advances and Other Assets 3 , 000 , 82 6 2 , 414 , 99 2

Sub - Total (A) 7 , 151 , 47 8 6 , 850 , 82 1

Current Liabilities 8,003,111 7,666,468Provisions 1 , 644 , 28 7 624 , 85 1

Sub - Total (B) 9 , 647 , 39 8 8 , 291 , 31 9

Net Current Assets (C) = (A-B) (2,495,920) (1,440,498)Miscellaneous Expenditure(To the extent not written off or Adjusted ) - -Debit Balance in Profit and Loss Account (Shareholders' Account ) 11 , 069 , 19 7 12 , 290 , 80 2

Total 238 , 320 , 28 9 227,285,331

MARKET STRUCTURE

44

Data released by insurance sector regulator IRDA shows that the first year premium

of the life insurers for the period of December, 2010 is again predominantly in favor

of LIC. Herein mentioned are some statistics given by IRDA regarding the

individual single premium of several life insurers in December 20101:-

1. Bajaj Allianz - 77.26 crore

2. ING Vyasa - 2.58 crore

3. Reliance Life - 80.26 crore

4. SBI life - 248.54 crore

5. Tata AIG - 14.02 crore

6. HDFC standard - 136.72 crore

7. ICICI prudential - 251.97 crore

8. Birla Sun Life - 9.73 crore

9. Aviva - 21.57 crore

10. Max New York - 25.15 crore

11. Met Life - 33.86 crore

12. Shriram Life - 44.90 crore

13. IDBI federal - 21.11 crore

14. Star Union Dai-ichi - 44.98 crore

15. LIC - 1774.43 crore

These are some top companies and there premium collected in December 2010 which clearly

depicts that LIC has lucrative market dominance and other private players have a small

market share. Such figures explain that LIC is a dominant entity and can influence

competition in market negatively due to the regulation of the regulatory body and the

45

government.

Talking about the number of lives covered under group single premium upto December, 2010

for some major companies are as follows according to the data released by IRDA on basis of

data submitted by these insurance companies:-

1. Bajaj Allianz - 105972

2. Reliance life - 508352

3. SBI Life - 239465

4. Tata AIG - 57543

5. HDFC Standard - 175291

6. ICICI Prudential - 1793883

7. Kotak Mahindra - 359582

8. Max New York - 1495603

9. Shriram Life - 216448

10. LIC - 27020588

Apart from these companies like Aegon Religare and Birla Sun life has 959 and 995 lives

covered upto December 2010. This is evident in itself to prove my point that knowing or

unknowingly but the regulation in the insurance sector is giving an undue advantage to LIC

and leading to unfair competition. The top 5 life insurance companies in India control 85% of

the market-share while the remaining dozen are still struggling to setup their operation. If we

see the entire market amongst private players only excluding LIC in life insurance sector we

would see there is hardly any private player which has a grip over the market.

46

Fig: - market split up of private life insurers only excluding LIC

47

DATA ANALYSIS AND INTERPRETATION

Age Group of the Respondents

48

Nature of Family

49

Annual Income

50

The Role of Investment for Successful Life

51

Familiarity with Insurance Products

52

Preferences for Investment Options

53

Reason for Investment Options

54

Insurance Policy Holders

55

Rating Birla Sun Life Insurance Plans

56

Performance Level of the Company

57

COMPARISON BETWEEN SOME PRODUCTS OF BSLI AND

LIC.

1) Comparison between BSLI’s Saral Jeevan plan and LIC’s Jeevan Saral

plan.

BSLI LIC

In BSLI plan entry age is 18-55 years In LIC plan entry age is 12-60 years

In BSLI policy term is 10, 15, and 20 years. In LIC policy term is 10-35 years.

In BSLI plan max. Maturity age is 65 years In LIC plan max. Maturity age is 70 years.

In BSLI min. premium is 10000p.a. In LIC plan min. premium is5000p.a.

2) Comparison between BSLI Platinum plus plan and LIC Market plus

plan

BSLI LIC

Entry age in BSLI is 18-70 years. Entry age in LIC is 18-70 years.

In BSLI min. annual premium is 50000p.a. In LIC plan premium is 10000p.a.

In BSLI plan maturity benefit is guaranteed. In LIC plan maturity benefit is not

guaranteed.

58

3) Comparison between BSLI’s Children dream plan and LIC’s

Marriage Endowment Or Educational Annuity Plan:

BSLI LIC

In BSLI plan policy term is 18 years. But in LIC plan policy term is 5-25 years

less the age of child at entry.

In BSLI fund value is guaranteed. In LIC plan fund value is not guaranteed.

Premium paying frequency is almost same i.e. yearly, half yearly, quarterly, monthly.

In case of death benefit: in BSLI plan the sum assured is paid to the nominee upon the death

of the life insured (parent). The new life insured is the child and new owner is appointed as

per your wishes.

In LIC plan if death occurs due to accident then basic sum assured is payable on

death immediately and further premiums are not payable after expiry of the term again

basic sum assured + bonus is payable.

59

4) Comparison between BSLI’s Retirement plan and LIC’s New Jeevan

Suraksha plan.

In BSLI plan entry age is 18-80 years. In LIC plan entry age is 18-70 yrs.

In BSLI plan vesting age is 10-40 yrs.

from entry age (Max. 90yrs.)

In LIC plan vesting age is 50-79 yrs.

In BSLI plan min. premium is 9600 p.a. In LIC plan min. premium is 3000 p.a.

Premium paying frequency is same i.e. yearly, half yearly, quarterly, and monthly

Death Benefits:

In BSLI plan the unfortunate event of death of the policyholder the nominee will receive the

higher of:

75% of the base premium and all renewal base premiums paid. OR the surrender value at

the time plus all accumulated survival benefits.

In LIC plan

If death occurs within 10 years - 3% (interest on all premium given)

Between 11 to 20 years 4%

After 20 years 5%

60

COMPLAINT AGAINST BIRLA SUN LIFE INSURANCE

Dear Sir/Madam

Please treat this letter as a formal complaint against Birla Sun Life Insurance Company, for

not giving my surrender money on time and not taking my complaints seriously. I want to

draw your kind attention towards this issue that I have surrendered my Policy no. 001248952

on 9th Oct. 2010 at 11: 39 am in Birla Sun life’s Kamla Nagar Branch & they says me that

I've received surrendered amount in 10 days but I don’t received so I call their customer

care on 20th Oct. & they says me that they received my policy documents on 19th when I ask

them that I surrendered on 9th she says me that mail that acknowledgement slip to them so i

do so then I received call from their back office on 24th October that they received my

documents on 21th October & if I surrendered on 9th then I have to go to the branch & talk to

BOE after that I go to the branch & their BOE talk with them & lodged my Complaint.

Complaint No. is 018-916-127 they assured me that I’ve receive my amount in 3-4 days but I

didn’t received notice date. I again call them many times after that but I've not received any

satisfied reply from them they r just told me again & again that I've received my amount in 2-

3 days but I don’t know that these 2-3 days when will come. so please guide me what should

I do to get my money.

Sir I'll be very thankful to you if you take this matter & solve my problem because I need

money urgently due to some family problems. I am sending that acknowledgement letter with

date & time stamp pls. find attached with this mail. 

Regards 

Ravi

9818775750 

Policy No. 001248952 Birla Sun Life 

Complaint No. 018-916-127 Dated: 24-10-2010

61

CONCLUSION

The market potential for private insurance companies is found to be greater in the long run as

most of the Indians are of the opinion that, private insurance companies would be able to

preform well in the future. The private and foreign insurance companies have to take

immediate steps in appointing more number of agents and\or advisors in addition to the

employees as it has been found out that agents are the best channels to reach the general

public regarding selling of insurance products. The private and foreign insurance companies

have to concentrate on the factors like ‘Prevention of Loss’, ‘Assured Returns’ and ‘Long

Term Investment’. They can also focus on an insurance amount of RS 1-2 lakhs with ‘money

back policy’ hence, the market has potential. The private and foreign companies that are

taking immediate steps can tap it easily and rapidly.

62

WEBILOGRAPHY

http://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/723/Form-L-1.pdf

http://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/724/Form-L-2.pdf

http://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/726/Form-L-3.pdf

http://insurance.birlasunlife.com/Pages/Individual/About-Us/Awards.aspx

http://www.slideshare.net/rennymp/project-at-birla-sun-life