Project report

TABLE OF CONTENTS

S.No. PARTICULARS Page No.

1 EXECUTIVE SUMMARY4-8

2 OBJECTIVES OF THE STUDY9-10

3 INTRODUCTION OF THE INDUSTRY11-14

4 COMPANY PROFILE15-30

5 RESEARCH METHODOLOGY31-33

6 ANALYSIS AND INTERPRETATION34-39

7 SUGGESTION AND RECOMMENDATION40

8 CONCLUSION41

9 LIMITATIONS OF THE STUDY42

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ANNEXURES-

BIBILIOGRAPHY

QUESTIONNAIRE

43-46

PERFACE

A Project is an outcome offer sincere labour of curious mind. Its worth depends

not necessarily on the status of the marker in practice and profession. The best

and most of topic must get into wasp and web of it, treated and woven with

lucidity and logical compulsion. Given the level of treatment there is no essential

dichotomy between quality and brevity that together must go into construction of

project.

The company aims to cover large market area with efficient market infrastructure.

My project report has been prepared on the topic “BHARAT JEEVAN LIFE

INSURANCE”. By studying these concepts, we can come to the actual position

of the company and then compare it with the other companies set in same field.

A good project report is a valuable asset to the company, the institution and to

the student as well. Going through this report, one can easily find out the various

goods provided by the DAVIM, various merits and demerits of the service.

Succeeding pages explain in details the various aspects of “BHARAT JEEVAN

LIFE INSURANCE”.

HIMANSHU SIROHI

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ACKNOWLEDGEMENT

I FEEL THE PLEASURE TO HAVE AN OPPORTUNITY TO EXPRESS MY

DEEP SINCERE FEELING OF GRATITUDE TOWARDS THOSE

PERSONALITIES, WHO POSITIVELY HELP ME TO CONVERT MY DREAM

INTO REALITY.

I AM INDEBTED TO MY PRINCIPLE DIRECTOR DR. N. K SHARMA WITH

SINCERE REGARDS FOR THEIR VALUABLE TIME SPARED FOR ME AND

FOR GENUINE INTEREST IN PROVIDING ME THE INFORMATION,

REGARDING THE PROJECT.

Besides, I am also thankful to my placement teacher Ms. Roma Sharma for

providing me full-fledged support in preparing this project.

HIMANSHU SIROHI

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EXECUTIVE SUMMARY

FINANCIAL SECTORThe Indian financial sector is in for an overhaul. Financial sector reforms have long been regarded as an integral part of the overall policy reforms in India. India has recognized that these reforms are imperative for increasing the efficiency of resource mobilization and allocation in the real economy and for the overall macroeconomic stability. The reforms have been driven by a thrust towards liberalization and several initiatives such as liberalization in the interest rate and reserve requirements have been taken on this front. At the same time, the government has emphasized on stronger regulation aimed at strengthening prudential norms, transparency and supervision to mitigate the prospects of systemic risks. Today the Indian financial structure is inherently strong, functionally diverse, efficient and globally competitive. During the last fifteen years, the Indian financial system has been incrementally deregulated and exposed to international financial markets along with the introduction of new instruments and products.

Banking SectorThe banking sector is the most dominant sector of the financial system in India. Significant progress has been made with respect to the banking sector in the post liberalization period. The financial health of the commercial banks has improved manifolds with respect to capital adequacy, profitability, and asset quality and risk management. Further, deregulation has opened new opportunities for banks to increase revenue by diversifying into investment banking, insurance, credit cards, depository services, mortgage, securitization, etc. Liberalization has created a more competitive environment in the banking sector. The competition has increased within the banking sector (with the emergence of new private banks and foreign banks) as well as from other segments of the financial sector such as mutual funds, Non Banking Finance Companies, post offices and capital markets.

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Capital MarketIndia has a long tradition of functioning capital markets. The Bombay stock exchange is over a hundred years old and the volume of activity has increased in the recent years. The process of reform of capital markets started in 1992 and aimed at removing direct government control and replacing it by a regulatory framework based on transparency and disclosure. The first step was taken in 1992 when SEBI was elevated to a full-fledged capital market regulator. An important policy initiative in 1993 was the opening of capital markets for foreign institutional investors and allowing Indian companies to raise capital abroad. FII registrations in the country have gone up significantly over the years. The number of registered FIIs has gone up significantly. The FIIs have been rewarded well by attractive valuations and increasing returns. The depository and share dematerialization systems have been introduced to enhance the efficiency of the transaction cycle.A number of significant reforms have been implemented in the spot equity and related exchange traded derivatives markets since the early 1990s. For instance, spot prices are mostly market-determined, trading volumes in the derivatives market exceed those in spot markets and market practices such as speed of settlement and dematerialization are close to international best practices.

Insurance SectorThere exists huge scope of investment in the insurance sector in India. India has an enormous middle-class that can afford to buy life, health and disability and pension plan products. Further, insurance is one of the most important taxes saving instrument in the country.Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market, which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India on the fulfillment of certain prerequisites. A large number of public and private players are competing today in both life and general insurance segments. The FDI cap/ Equity in the insurance sector is 26 percent under the automatic route subject to licensing by the insurance regulatory and development authority.

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Some of the major private players in the sector are:In Life insurance Sector:

1. Bajaj Allianz Life Insurance Corporation 2. BHARAT JEEVAN LIFE INSURANCECo. Ltd. (BSLI) 3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD LIFE) 4. LIC Prudential Life Insurance Co. Ltd. (LIC PRU) 5. ING Vysya Life Insurance Co. Pvt. Ltd. (ING VYSYA) 6. Max New York Life Insurance Co. Ltd. (MNYL) 7. MetLife India Insurance Co. Pvt. Ltd. (METLIFE) 8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd. SBI Life Insurance Co.

Ltd. (SBI LIFE) 9. TATA AIG Life Insurance Co. Ltd. (TATA AIG) 10. AMP Sanmar Assurance Co. Ltd. (AMP SANMAR) 11. Aviva Life Insurance Co. Pvt. Ltd. (AVIVA) 12. Sahara India Life Insurance Co. Ltd. (SAHARA LIFE) 13. Shriram Life Insurance Co. Ltd

In General Insurance sector:

1. Bajaj Allianz General Insurance Co. Ltd. (BAJAJ ALLIANZ) 2. LIC I Lombard General Insurance Co. Ltd. (LIC LOMBARD) 3. IFFCO Tokyo General Insurance Co. Ltd. (IFFCO TOKIO) 4. Reliance General Insurance Co. Ltd. (RELIANCE) 5. Royal Sundaram Alliance Insurance Co. Ltd. 6. TATA AIG General Insurance Co. Ltd. (TATA AIG) 7. Cholamandalam MS General Insurance Co. Ltd. 8. HDFC Chubb General Insurance Co. Ltd. (HDFC CHUBB)

Venture CapitalIndia is prime target for venture capital and private equity today, owing to various factors such as fast growing knowledge based industries, favorable investment opportunities, cost competitive workforce, booming stock markets and supportive regulatory environment among others. The sectors where the country attracts venture capital are IT and ITES, software products, banking, PSU disinvestments, entertainment and media, biotechnology, pharmaceuticals, contract manufacturing and retail. An offshore venture capital company may contribute up to 100 percent of the capital of a domestic venture capital fund and may also set up a domestic asset management company to manage the fund. Venture capital funds (VCFs) and venture capital companies (VCC) are permitted up to 40 percent of the paid up corpus of the domestic unlisted companies. This ceiling would be subject to relevant equity investment limit in force in relation to areas reserved for SSI. Investment in a single company by a VCF/VCC shall not exceed 5 percent of the paid up corpus of a domestic VCF/VCC. The automatic route is India financial industries.

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Other types of bank servicesPrivate banking - Private Banks provide banking services exclusively to high net worth individuals. Many financial services firms require a person or family to have a certain minimum net worth to qualify for private banking services. Private Banks often provides more personal services, such as wealth management and tax planning, than normal retail banks. Capital market bank - bank that underwrite debt and equity, assist company deals (advisory services, underwriting and advisory fees), and restructure debt into structured finance products. Bank cards - include both credit cards and debit cards. Bank of America is the largest issuer of bank cards. Credit card machine services and networks - Companies which provide credit card machine and payment networks call themselves "merchant card providers".

Foreign exchange services

Foreign exchange services are provided by many banks around the world. Foreign exchange services include:

1. Currency Exchange - where clients can purchase and sell foreign currency banknotes

2. Wire transfer - where clients can send funds to international banks abroad

3. Foreign Currency Banking - banking transactions are done in foreign currency

Investment services

1. Asset management - the term usually given to describe companies which run collective investment funds.

2. Hedge fund management - Hedge funds often employ the services of "prime brokerage" divisions at major investment banks to execute their trades.

3. Custody services - Custody services and securities processing is a kind of 'back-office' administration for financial services. Assets under custody in the world were estimated to $65 trillion at the end of 2004.

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Other financial services

1. Intermediation or advisory services - These services involve stock brokers (private client services) and discount brokers. Stock brokers assist investors in buying or selling shares. Primarily internet-based companies are often referred to as discount brokerages, although many now have branch offices to assist clients. These brokerages primarily target individual investors. Full service and private client firms primarily assist execute trades and execute trades for clients with large amounts of capital to invest, such as large companies, wealthy individuals, and investment management funds.

2. Private equity - Private equity funds are typically closed-end funds, which usually take controlling equity stakes in businesses that are either private, or taken private once acquired. Private equity funds often use leveraged buyouts (LBOs) to acquire the firms in which they invest. The most successful private equity funds can generate returns significantly higher than provided by the equity markets

3. Venture capital - Venture capital is a type of private equity capital typically provided by professional, outside investors to new, high-potential-growth companies in the interest of taking the company to an IPO or trade sale of the business.

4. Angel investment - An angel investor or angel (known as a business angel or informal investor in Europe), is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital.

5. Conglomerates - A financial services conglomerate is a financial services firm that is active in more than one sector of the financial services market e.g. life insurance, general insurance, health insurance, asset management, retail banking, wholesale banking, investment banking, etc. A key rationale for the existence of such businesses is the existence of diversification benefits that are present when different types of businesses are aggregated i.e. bad things don't always happen at the same time. As a consequence, economic capital for a conglomerate is usually substantially less than economic capital is for the sum of its parts.

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OBJECTIVES OF THE STUDY

OBJECTIVES OF THE STUDY

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1. Providing knowledge and imparting intensive training in the chosen area of

specialization

2. Exposing student to the chalanges being faced by the industry through

frequent interactive session with the captains of industries and

participating managers including public sector organization.

3. Including ability of contenious and systematic scaning of environment.

4. Encouraging creativity through seccion of literal thinking, grooming

students to be responsible and honored citizens.

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INTRODUCTION OF INDUSTRY

INTRODUCTION OF INDUSTRY

INSURANCE – THE CHARACTERSTICS OF BEING SERVICE

Insurance services are intangible having the implications of difficulty in judging the quality and value in advance. It is relatively difficult to promote and is difficult to have patent or copyright. Insurance services have the characteristics of being inseparable from the firm providing the service. It requires the apparent presence of performer/marketer. Moreover, insurance services requires a

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throughout involvement of human element in providing and rendering services as it is a people based service and not the equipment based service. This makes standardization of the quality a very difficult task to achieve. Further, insurance services cannot be stored and have dominant feature of perishablity. And lastly, consumer has the access t the insurance services but cannot own the facility. Thus for marketing the insurance services, the marketing managers must understand the nature and characteristics of insurance as a service and the manner they impinge on the marketing strategy. PARAMETERS OF CUSTOMERS SERVICES TOWARDS LIFE INSURANCE COMPANIES. The following are the parameters on which customers judge the quality of the services provided by the Insurance companies-:Product (service) - The very first and important parameter is the service or the product itself. It includes the brand name, the policy features, service quality etc. Apart from this there has been some new service development and innovations going on at regular intervals. Innovative covers were launched earlier like umbrella cover for household and shopkeepers in urban and semi-urban markets. Recent innovation is the overseas mediclaim for even students and executives going abroad on contract basis. Also there has been innovations wherein the insurance companies are offering products which offer returns linked to the one going in the market. These are called “unit linked plans.”Price is an important element of perception towards the insurance companies. Here, the strategy is not cost based pricing. The premium is however different for services provided by different insurance companies. In insurance companies the pricing strategy is based on a “product version basis”.

Physical evidence – The physical evidence would refer to the overall tangibles used by the organization to communicate to the customers how effective they are in delivering their customers service. This can be judged on the basis of certain parameters like aesthetics, social conditions, convenience, ambience, and privacy. Customers do keep the perception about te physical evidence of the service organizations so as to decide about whether to use their service or not. Place : Place would indicate the accessibility of the services of the insurance companies. It would include the strength of the distribution channel of the insurance companies, the number of offices it has, the number of agents it has, the number of tie – ups it has with the banks across the globe etc. The stronger the distribution network the positive will be the perception of the customer towards the insurance organization and vice versa.

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Distribution channels in case of the insurance services . Head officesRegional Offices.Divisional offices.Branch offices.

Customers

Insurance agentsOr direct selling agents.Banks. Promotion – Since the insurance services like any other services are intangible, there is more stress on designing subjective expression and impressions rather than objective evidence. The methods used in the promotion of insurance services are personal selling, publicity, and sales promotion. The insurance services rely heavily on the ‘personal selling’ through commission agents and development officers, as the services cannot be separated from the performer. Moreover, the exact standards of performing cannot be specified. One strategy of personal selling is to make their presence felt as maximum as possible and should maintain a high visibility. The insurance organization should choose the media vehicle, which is credible, and trustworthy otherwise it may be boomerang. Though there are varied techniques for sales promotion the affective way of sales promotion in case of life insurance services may be free gifts like calendars etc. to its existing customers and discounts in premium in case of brand loyalty. These can go a long way in attracting potential customers as well. People – In any service industry the role of its people is substantial and significant too. Main interaction and maximum contact of customers is with employees at the front counter of the company providing the services. These contracts and interactions actually lead the company’s performance to a certain directions. These employees must be well informed about the service and more importantly well behaved so as to win the customer’s perception about the company/company’s policies which would be formed on the basis of the contract with the personnel of the company.Like personnel of the company, the customers also are important as there is ‘two step communication.’ A customer influences other customers and hence as image of the company is formed. The moral of the discussion is the customer satisfaction. This is very relevant and significant in insurance industry. If any customer doesn’t get a fair deal from a company in the claim settlement or in

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claim delivery, he definitely influences other customers in their selection of the company. And in the process company loses some customers. Process – Process refers to the logical sequence of activity of delivery of service of performer to the ultimate customer. The process to be efficient requires a judicious blend of men and machine. In the insurance services, customers’ general view is that the process involves a lot of paper work, is time consuming, and has bureaucratization. In the event of an accident, the customer has to run so many times to get a claim and get the unnecessary administrative stings removed put by either the surveyor or the agent or sometimes with the connivance of all three. This process has to be streamlined and automation should be introduced wherever possible. Thus, the process has a direct impact on the customer satisfaction. Moreover, some companies’ boast of high rate of claim settlements but if we drive deep into this we would find that most of the claims may be forged one and the real deserving customers are not given their claims.

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COMPANY PROFILE

COMPANY PROFILE

BHARAT JEEVAN LIFE INSURANCE

pioneered the unique Unit Linked Life Insurance Solutions in India. Within 4 years of its launch; BSLI has cemented its position as a leading player in the Private Life Insurance Industry. There has been focus on Investment Linked Insurance Products, supported with protection products to maintain leadership in product innovation. Multi Distribution Channels- Direct Sales Force, Alternate Channels and Group offering convenient channels of purchase to customers. Web-enabled IT systems for superior customer services. First to have issued policies over the Internet. Corporate governance and a high degree of

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transparency in all business practices and procedures. First to have an operational Business Continuity Plan.

Mission To be the first preference of our customers by providing innovative, need based life insurance and retirement solutions to individuals as well as corporate. Well-trained professionals through a multi channel distribution network and superior technology will make these solutions available. 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.

History of the company The Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. A US$ 8.3 billion conglomerate, with a market capitalization of US$ 12 billion, it is anchored by an extraordinary force of 82,000 employees belonging to over 20 different nationalities. Over 23 per cent of its revenues flow from its operations across the world. The Group's products and services offer distinctive customer solutions. Its 74 state-of-the-art manufacturing units and sect oral services span India, Thailand, Laos, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China.

A premium conglomerate, the Aditya Birla Group is a dominant player in all of the sectors in which it operates. Among these are viscose staple fiber, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators, financial services, telecom, BPO and IT services.Globally the group is:

1. Market leader in viscose staple fiber

2. The fourth largest producer of insulators

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3. The fourth largest producer of carbon black

4. The eleventh largest cement producer

Among the most cost-efficient aluminum and copper producers. The fourth largest aluminum producer in Asia and the largest single location custom copper smelter. Among the best energy-efficient fertilizers plants In India, the Group holds a frontrunner position .

PLANS OF BJLI

Flexi Cash Flow Money Back Plan

1. Lump sum payment at regular intervals.

2. Tax free payment at important milestones in life.

3. Guaranteed return of 3% net of policy charges.

4. Choice of 3 investment fund options. Unique Features

1. The plan is a unit linked non-participating plan to give you efficient returns.

2. Tax-free lump sum payouts, to take care of recurring needs.

3. A choice of three Investment Fund Options: Protector, Builder and Enhancer, with the freedom to switch between the Investment Fund Options anytime during the policy tenure.

4. Flexibility to make additional lump sum investments (top ups) to increase the savings portion of your policy.

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5. Minimum Guaranteed returns of 3% p.a. on your premium and any top up amounts, net of all Policy Charges. More importantly the entire upside in the performance of the Investment Fund is passed on to you.

6. Options to make tax-free Partial Withdrawals from your Fund Value anytime after three years.

7. Surrender the policy without penalty after 4 policy years.

8. Increase the Sum Assured during the premium-paying period any time depending on your needs.

RidersFurther customize your BHARAT JEEVAN LIFE INSURANCEPlan by adding riders to the base plan at a marginal extra cost.Accidental death and Dismemberment Benefit Rider :

It provides 100% of coverage in case of death due to accident; loss of more than one limb or sight in both the eyes or in case of loss of one limb and loss of sight in one eye; 50% coverage in case of loss of one limb or sight in one eye. Term Rider:

It provides additional amount of cover in the event of death of the life insured. Critical Illness Rider :

It provides a cover in the event of life insured being diagnosed as suffering from any of four illnesses specified under the Critical Illness Rider. Critical Illness Plus Rider:

It provides a cover in the event of life insured being diagnosed as suffering from any of the seventeen illnesses specified under the Critical Illness Plus Rider Critical Illness Woman Rider:

It provides a cover against several critical illness including woman specific illnesses. Pregnancy complications and congenital anomalies in a newborn child. Waiver of Premium:This rider waives payment of future premiums on the happening of any of the unforeseen events as covered under this rider

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Investment FundMin / Max Limit of % of Assets InRisk ProfileProtectorBuilderEnhancer Govt. and Govt. approved SecuritiesLow30%-100%25%-90%20%-80% Corporate Bonds (Rated AA and above)Medium0%-30%0%-30%0%-30% Money market and other Liquid assetsVery Low0%-20%0%-20%0%-20% Infrastructure sector as Defined by the IRDAMedium0%-25%0%-25%0%-25% Listed equitiesHigh0%-10%10%-20%20%-35%

The Plan Flexi Save Plus - Endowment Plan Entry Age30 days - 60 years Maximum Maturity Age

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70 years DurationsAs per policy term - 10,15,20,25 or 30 yrs or as per maturity age:To age 15,20,25,30,35 yrs for minors and 60,65,70 yrs for majors. Minimum Duration6yrs for To age variant for minors and 10yrs for all other options. Maximum Duration35yrs for To age variant for minors, 52yrs for To age variant for majors and 30yrs for all other options. Minimum Sum AssuredFor Single Premium option the Sum Assured will be 125% of the Single Premium, Rs.2,00,000 for To age 70 yrs and Rs 1,00,000 for all other terms. Premium Paying PeriodSingle pay, 10, 15, 20 years or over the duration of the plan Premium Payment FrequencySingle pay, Annually, Semi-annually, Quarterly (for annual premium more than Rs.20,000 only), Monthly (through ECS only). Premium Payment ModeCash (upto Rs. 25000), Cheque, Credit Card, Salary Deduction, ECS, Direct debit Top upYou can top up the fund whenever you have additional savings during the tenure of the policy. The minimum amount of top ups will be Rs. 5,000. The maximum amount of top up will be Rs. 50,000 or the Annual Premium whichever is higher. Guaranteed Returns/ Guaranteed FundsA minimum guaranteed return of 3% p.a. would be paid on the Premium and any top up amounts, net of policy charges. This total will constitute the Guaranteed Fund. The guaranteed returns are applicable in case of all exits.

Maturity Benefits

The higher of the 'Fund Value' (Number of units multiplied by the NAV of the Investment Fund Option chosen) or the 'Guaranteed fund' (based on 3% returns)

Guaranteed Returns/ Guaranteed Funds

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A minimum guaranteed return of 3% p.a. would be paid on the Premium and any top up amounts, net of policy charges. This total will constitute the Guaranteed Fund. The guaranteed returns are applicable in case of all exits. Amount due to nominee in event of death of the life insuredHigher of 'Fund Value' or 'Guaranteed Fund' or 'Sum Assured’ less applicable Partial Withdrawals in the 24 months preceding the death of the life insured.Where the policy is bought on or prior to the 1st birthday of the life insured, only Fund Value is payable to the policy owner in the event of death of life insured within the first policy year. In case of death at the age of 60 yrs or above then the Sum assured will be reduced by the applicable Partial Withdrawals made since the life insured attained the age of 58. Partial WithdrawalsIn a year two Partial Withdrawals are free of charge. Classic Life PremierIn this policy, the investment risk in investment portfolio is borne by the policyholder.

1. Guaranteed additions in the form of additional units

2. Choice of tenure-10, 20, 30 years or whole life

Benefits Death Benefit In case of an untimely death of the policy holder during the policy period, the nominee of the policy holder will get 100 times of the premium amount paid. Maturity Benefit On Maturity, the policy holder will get his premium back with 10% bonus(1.10 times). Surrender Benefit

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Under this plan if policyholder wishes to surrender his policy, he will get following surrender benefits. On Surrender: In 1st year of policy Only Premium amountIn 2nd policy year1.04 times of Premium amountIn 3rd policy year1.08 times of Premium amount Features

1. Any time surrender facility

2. No special medical checkup required

3. Simple Application form and easy documentation process The PlanIt is a three-year plan. Premium is paid only once in 3 years. It has three benefits

1. Death

2. Maturity

COMPANY PROFILE

Every day we wake up to the fact that more than 170 million lives are part of our

family called LIC.

We are humbled by the magnitude of the responsibility we carry and realise that

the lives that are associated with us are very valuable indeed.

Although this journey started five decades ago, we are still conscious of the fact

that, while insurance may be a business for us, being part of millions of lives

every day for the past 50 years has been a process called TRUST.

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MISSION

"Explore and enhance the quality of life of people through financial security by

providing products and services of aspired attributes with competitive returns,

and by rendering resources for economic development."

VISION

"A trans-nationally competitive financial conglomerate of significance to societies

and Pride of India."

HISTORY

HistoryThe Oriental Life Insurance Company, the first corporate entity in India offering life insurance cover was established in Calcutta in 1818 by Bipin Behari Dasgupta and others. Europeans in India were its primary target market, and it charged Indians heftier premiums. The Bombay Mutual Life Assurance Society, formed in 1870, was the first native insurance provider. Other insurance companies established in the pre-independence era included

*Bharat Insurance Company (1896) *United India (1906) *National Indian (1906) *National Insurance (1906) *Co-operative Assurance (1906) *Hindustan Co-operative (1907) *Indian Mercantile *General Assurance *Swadeshi Life (later Bombay Life)

The first 150 years were marked mostly by turbulent economic conditions. It witnessed, India's First War of Independence, adverse effects of the World War I and World War II on the economy of India, and in between them the period of

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world wide economic crises triggered by the Great depression. The first half of the 20th century also saw a heightened struggle for India's independence. The aggregate effect of these events led to a high rate of bankruptcies and liquidation of life insurance companies in India. This had adversely affected the faith of the general public in the utility of obtaining life cover.

The LIFE INSURANCE Act and the Provident Fund Act were passed in 1912, providing the first regulatory mechanisms in the Life Insurance industry. The Indian Insurance Companies Act of 1928 authorized the government to obtain statistical information from companies operating in both life and non-life insurance areas. The subsequent Insurance Act of 1938 brought stricter state control over an industry that had seen several financially unsound ventures fail. A bill was also introduced in the Legislative Assembly in 1944 to nationalize the insurance industry.

===Nationalization===

In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owner's of private insurance companies. In the ensuing investigations, one of India's wealthiest businessmen, Ram Kishan Dalmia, owner of the Times of India newspaper, was sent to prison for two months. Eventually, the Parliament of India passed the Life Insurance of India Act on 1956-06-19, and the Life Insurance Corporation of India was created on 1956-09-01, by consolidating the life insurance business of 245 private life insurers and other entities offering life insurance services. Nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control over at least seventeen sectors of the economy, including the life insurance. The company began operations with 5 zonal offices, 33 divisional offices and 212 branch offices

Services

OverviewA significant amount of The Consus Group's practice involves providing advice to parties currently, or about to be, engaged in some type of contractual transaction. We guide clients through virtually every conceivable formation issue and work closely with them in getting their deals done. We are very familiar with the nuances—and risks attendant—to all forms of contract drafting and negotiation.

1. Broad Industry Experience. Our experts assist clients in industries ranging from entertainment to microprocessors to aerospace. We are as comfortable with the issues that arise in consumer goods markets as we are with the issues in the newest high technology market.

2. Multidisciplinary Approach. Our practice includes lawyers who are equally familiar with law and business, as well as lawyers from specific

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practice areas who assist with particular issues on an as-needed basis. This multidisciplinary approach is particularly valuable to our clients because business issues rarely arise in a vacuum. Readily available, substantive expertise in related areas of the law is often essential to the provision of efficient and effective counsel.

3. Managing Costs. Our broad-based experience allows us to handle matters efficiently and cost-effectively. Our clients do not pay us to reinvent the wheel or to learn law or business. Although our practice includes highly experienced attorneys, we often structure and negotiate creative, cost-effective, consensual resolutions that achieve our clients' objectives without incurring the cost, delay, and risk of protracted litigation.

4. Commitment. We strive to establish long-term, value-added relationships with our clients. Our experts want to understand our clients' businesses almost as well as they do. We find that this approach allows us not only to provide services on specific matters, but also to serve as a resource for strategic planning. This often includes helping to identify possible sources of capital, designing innovative deal structures, and finding strategic alliances and joint venture partners. TCG is committed advising each client with constant attention to communication, efficiency, and consistency.

Payment Of Premium:

1. By cash, local cheque (subject to realization of cheque), Demand Draft at

Branch Office.

2. The DD and cheques or Money Order may be sent by post.

3. You can pay your premiums at any of our Branches as 99% of our

Branches are networked.

4. Many Banks do accept standing instructions to remit the premiums. So by

providing a standing instruction to your Bank to debit your account for the

premium amount and send it vide a banker’s cheque to LIC, on the due

dates and months mentioned on your policy bond.

5. Through Internet : Payment of premiums can be made through Internet

through Service Providers viz.HDFC Bank, LIC Bank, Times of Money, Bill

Junction, UTI Bank, Bank of Punjab, Citibank, Corporation Bank, Federal

Bank and BillDesk.

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6. Premium payment can also be made through ATMs of Corporation Bank

and UTI Bank.

7. Premium payment can also be made through Electronic Clearing Service

(ECS) which has been launched at Mumbai, Hyderabad, Chennai,

Kolkata, New Delhi, Kanpur, Bangalore, Vijaywada, Patna, Jaipur,

Chandigarh, Trivandrum, Ahmedabad, Pune, Goa and Nagpur,

Secunderabad & Visakhapatnam. A policyholder having an account in any

Bank which is a Member of the local Clearing House can opt for ECS debit

to pay premiums. The policyholders wishing to use this system would

have to fill up a Mandate Form available at our Branches/DO and get it

certified by the Bank. The certified Mandate Forms are to be submitted to

our BO/DO.

Loans:

1. Loans are granted on policies to the extent of 90% of Surrender Value of

the policies which are in force and 85% of the Surrender Value in case of

policies which are paid-up, inclusive of the cash value of bonus. The rate

of interest charged at present is 9% p.a. payable half-yearly.

2. Loans are not granted for a period shorter than six months. The

Conditions and Privileges printed on the back of the Policy Bond states

whether a particular policy is with or without the loan facility.

Relief To Policyholders:

1. The Corporation generally allows concessions on payment of premiums,

settlement of claims, issue of duplicate policies, etc when the policyholder

are affected by natural calamities such as droughts, cyclones, floods,

earthquakes, etc.

Nomination:

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1. Nomination is a right conferred on the holder of a Policy of Life Assurance

on his own life to appoint a person/s to receive policy moneys in the event

of the policy becoming a claim by the assured’s death. The Nominee does

not get any other benefit except to receive the policy moneys on the death

of the Life Assured. A nomination may be changed or cancelled by the life

assured whenever he likes without the consent of the Nominee.

Ensure nomination exists in the policy for easy settlement of claims.

Assignment:

1. Assignment means transfer of rights, title and interest. When an

assignment is executed, all rights, title and interest in respect of the

property assigned are immediately transferred to the Assignee/s and the

Assignee/s become the owner/s of the policy subject to any lawful

condition made in the assignment.

2. Assignment can be either conditional or absolute. On assignment (other

than to LIC), Nomination automatically stands cancelled. Hence, when

such a policy is reassigned, the policyholder will have to make a fresh

nomination to avoid delay in settlement of claim.

Survival Benefit/Maturity Claims:

1. LIC settles survival benefit/maturity claims on or before the due date.

2. Policyholder are intimated well in advance by the Branch Office which

services the policy regarding the payment, and the necessary Discharge

Voucher is also sent for execution by the assured. In case the policyholder

does not get any intimation from the Branch Office concerned, he/she

should contact them, quoting the Policy Number.

3. Survival Benefit payment up to Rs.60,000/- are settled without insisting for

Policy Bond and Discharge Voucher.

Death Claims:

1. If the life assured dies during the term of the policy, death claim arises.

The death of the policyholder should be immediately intimated in writing to

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the Branch Office where the policy is serviced along with the following

particulars:

1. The No./s of the policy/ies

2. The name of the policyholder

3. Death Certificate issued by concerned Authority

4. The date of death

5. The cause of death and

6. Claimant’s relationship with the deceased

7. On receipt of the intimation of death, necessary claim forms are sent by

the Branch Office for completion along with instructions regarding the

procedure to be followed by the claimant.

8. The claims which have arisen after a period of three years are treated as

non-early claims and settled within 30 days from the date of receipt of all

requirements.

9. The claims that have arisen within a period of two years from the date of

commencement of the policy, are treated as early claims and investigation

is compulsory in such cases.

10. The claim is usually payable to the nominee/assignee or the legal heirs, as

the case may be. However, if the deceased policyholder has not

nominated/assigned the policy or if he/she has not made a suitable

provision regarding the policy moneys by way of a Will, the claim is

payable to the holder of a Succession Certificate or some such evidence

of title from a Court of Law.

11. The Corporation grants claims concessions under certain Plans whereby

payment of full sum assured is made, subject to the deduction of unpaid

premiums with interest till the date of death and unpaid premiums falling

due before the next anniversary of the policy, in the event of the death of

the life assured within a period of six months or one year from the date of

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the first unpaid premium, provided premiums have been paid for at least

three years and five years respectively.

INSURANCE PLANAs individuals it is inherent to differ. Each individual’s insurance needs and

requirements are different from that of the others. LIC’s Insurance Plans are

policies that talk to you individually and give you the most suitable options that

can fit your requirement.

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RESEARCH METHODOLOGY

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Research Methodology

Research Methodology is a systematized effort to gain new knowledge. The Research Methodology is a way to solve the research problem in a systematic manner. It depends upon the various steps like objectives of the study, how the data is collected, how much is the sample size required and limitations of the survey. Research Design

1. Non – Probability. 2. Exploratory & Descriptive Experimental Research.

There is primarily both exploratory as well as descriptive in nature. The sources of information are both primary and secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customer perception and buying behavior, through this questionnaire. DESCRIPTIVE RESEARCH DESIGNDescriptive research studies are those studies, which are concerned with, described the characteristics of particular individual.In descriptive as well as in diagnostic studies, the researcher must be able to define clearly, what he wants to measure and must find adequate methods for measuring it along with a clear cut definition of population he want to study. Since the aim is to obtain complete and accurate information in the said studies, the procedure to be used must be carefully planned. The research design must make enough provision for protection against bias and must maximize reliability, with due concern for the economical completion of the research study. SAMPLE DESIGNA Sample Design is a definite plan for obtaining a sample from a given population. It refers to the technique to the procedure adopted in selecting items for the sampling designs are as below:

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SAMPLE SIZEThe substantial portions of the target customer that are sampled to achieve reliable result are 100.

SAMPLING METHODIn this marketing research project, I am using Random sampling method. SAMPLE TECHNIQUEI have taken the Statistical tool of percentage method to analysis and interpretation of the collected data.

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ANALYSIS AND INTERPRETATION

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ANALYSIS AND INTERPRETATION

The study was conducted by the means of personal interview with respondents and the information given by they were directly recorded on questionnaire.For the purpose of analyzing the data it is necessary to collect the vital information. There are two types of data, this are-Primary DataSecondary data

PRIMARY DATA:-Primary data can be collected through questionnaire. The questionnaire can be classified into four main types.Structured non disguised questionnaire Structured disguised questionnaire.None structured non-disguised questionnaireNon –structured disguised questionnaire.For my market study, I have sleeted structured non-disguised questionnaire because my questionnaire is well structured, listing of questions are in a prearranged order and where the object of enquiry is revealed to the respondents.To making a well-structured questionnaire, we have adopted three types of questions-

1. -Open-ended question2. -Dichotomous questions3. -Multiple-choice questions

SECONDARY DATA:-Secondary data means data that are already available i.e. they refer the data which have already been collected and analyzed by someone else. When the researcher utilizes secondary data, than he has to look into various sources from where h e can obtain them, in this case he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data. Usually published data are available in:Various publications of the central, state and local government; Various publications of foreign government or of international bodies and their subsidiary organizational; Technical and trade journals; Books, magazines and newspapers;

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Reports and publications of various associations connected with business san industry, stock exchanges etc.; Reports prepared by research scholars, universities, economists etc; Public records and statistics, historical document and other source of published information. The source of unpublished data is many; they may be found in diaries, letters, unpublished biographies and autobiographies and also may be available with Scholars and research workers, trade associations, labor because and other Public private individuals and organization.

DATA ANALYSIS All graphs and pictures depicted further shows the quality standards and returns of BSLI at various intervals of time and invested in various funds

1. Opinion about life Insurance

.

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Conclusion: As according to people 70% of said that Life Insurance is necessary,25% people said it is optional and 5% people said it is not required.

2. Best part of Life Insurance

Conclusion: As according to the survey 10% people said Insurance after Death,20% people said for Money on Maturity and 70% people said for Tax Saving

3. Satisfaction with Birla Sunlife Insurance Products

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Conclusion: 70% are satisfied and 30% are not satisfied, 30% are also because pf LIC as it is Public Sector Company and people have so much confidence on this.

4. Best performing Insurance Company

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Conclusion: As all the Public and Private sector Insurance Companies are performing, but some companies are performing good they are

a) LIC Performing very good as it is 80%b) BSLI Performing 8%c) AVIVA Performing 5%, andd) Others are performing totally 7%.

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SUGGESTION AND RECOMMENDATION

1. The trainer should identify the objectives of the training, so that he can make the objectives clear to all the subordinates.

2. The trainer should use the latest and effective methods to train the employees.

3. The time of giving training should be based on the training needs 4. The HR Department and the trainer should be aware of the new and

effective methods of training 5. After imparting training, the HR Department should evaluate the training

very carefully, so that, they can know the effectiveness of training and the success of the training.

6. Feedback should be taken from both- the trainer as well as from the trainee to know the strengths and weaknesses of the training programmer.

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CONCLUSION

The training needs identification and the effectiveness of the company has been analyzed through the observation process and through the questionnaire responses and following conclusions are drawn:-

The managers are up to some extent satisfied with the existing systems and practices of training. Training is given to the employees regularly according to the training calendar prepared after estimating the need for training. The company is of the view that the training is helpful in improving behavioral and technical skills of the employees. The company is of the view that evaluation and the feedback process plays an important role in making training more effective and successful. Training need identification methods such as skill matrix and competency mapping adopted by the company are very effective methods.

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LIMITATIONS OF THE STUDY

1. The concerned authorities could not spare much time and attention for

providing information.

2. The respondents are biased while filling questionnaire, some merely ticked to show the positive picture of their organization.

3. The time to study the project is not sufficient.

4. Main root of this research study was questionnaire & interview, which has its own limitations, for example we can’t measure the reliability, enthusiasm dissonance etc.

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ANNEXURES-

BIBILIOGRAPHY:

QUESTIONNAIRE

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BIBILIOGRAPHY Websites:

1. www.birlasunlife.com 2. www.hdfcinsurance.com 3. www.google.com - Introduction of financial Industry 4. www.mutualfunds.com

Books: Research and methodology By C.R. Kothari Journals: BHARAT JEEVAN LIFE INSURANCE

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QUESTIONNAIRE PERSONAL DETAILS: - Name:…………………………………………………………………………………….Address:…………………………………………………………………………………Phone:…………………………………………………………………………………..Single……………. Married…………… Divorcee …………… Widow………….Nationality……………………………………………………………………………….Occupation……………………………………………………………………………

Questionnaire: -

1. Do you need insurance?

Yes No 2. What is your opinion about Life Insurance?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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3. What is the best part of life Insurance?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 4. What extra benefits must be added for insured?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 5. Do you have ever purchased any BSLI product?YesNo 6. Are you satisfied with BSLI products if yes/no give reasons.……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 7. According to you which is the best part of insurance and why?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 8. According to you which insurance company is performing best now days and on what basis?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 9. Is the information provided by you above is based on your:Knowledge Personal experienceJudgment

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Other sources

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