sip final

A

REPORT

ON

COMPARATIVE ANALYSIS OF LIFE

INSURANCE PRODUCT

Project Report Submitted to the Institute for Technology and Management

For partial fulfillment of the Degree of

POST GRADUATE DIPLOMA IN MANAGEMENT

BY

MR. AYUSH KHANDELWAL

Reg.No:ITM BAN2011PGDM20F0032

UNDER THE GUIDANCE OF:-

PROF. SAGAR BALA SAHOO MISS SINU GEORGE (PLACE COORDINATOR) (BUSINESS MANAGER)

INSTITUTE FOR TECHNOLOGY AND MANAGEMENT

1

BANGALORE-560076 2011-2013

Declaration

This is to declare that the Report entitled “A ORGANISATIONAL STUDY OF

BHARTI AXA LIFE INSURANCE COMPANY” has been made for the partial fulfillment of

the Course: Industry Internship Programme (IIP) in Semester II (Batch: 2011-13) by me at

BHARTI AXA LIFE INSURANCE under the guidance of Prof. SAGAR BALA

SAHOO(Manager Placements).

I confirm that this Report truly represents my work undertaken as a part of my Industry Intern -

ship Programme (IIP). This work is not a replication of work done previously by any other per-

son. I also confirm that the contents of the report and the views contained therein have been dis-

cussed and deliberated with the Faculty Guide.

Signature

2

AYUSH KHANDELWAL

Reg. No ITM-BAN2011PGDM20F0032

Certificate

This is to certify that Mr. AYUSH KHANDELWAL Reg.No. ITM BAN2011PGDM20F0032 has completed the Report titled A ORGANISATIONAL STUDY OF BHARTI AXA LIFE IN-

SURANCE COMPANY under my guidance for the partial fulfillment of the Course: Industry In-ternship Programme (IIP) in Semester II of the Master of Business Administration

3

Date :- SAGAR BALA SAHOO

Place:- Bangalore (Manager Placements)

ACKNOWLEDGEMENT

As a part of the MBA curriculum at Indian Institute Of Planning And Management Business

School, the ‘Summer Internship Program’ enables the students to enhance their skills, expand

their craniums by applying various theories, concepts and laws to real life scenario which would

further prepare them to face the extremely ―Competitive Corporate World‖ in the near future.

I take this opportunity to express my gratitude towards certain key people for their constant

guidance and support, without which the project would not have been a success.

I would like to show my gratitude to my Mentor Prof. SAGAR BALA SAHOO (Placement

coornidator) and Mrs.Latha Balasubramanian, Branch Head, Bharti AXA Life Insurance

for giving me an opportunity to be a part of a prestigious organization, and for her constant help

and support throughout the course of my project.

I extend my sincere thanks to my friends whose guidance and encouragement was of great help

in meeting the intended objective of my project. The time I was given and the encouragement I

have received, through the discussions and debates with them have proved to be profitable for

me.

I am forever indebted to my parents who provided me with the support, inspiration, time and

guidance throughout my life.

4

AYUSH KHANDELWAL

PGDM-2011-13

TABLE OF CONTENTS

1) EXECUTIVE SUMMARY

2) INTRODUCTION

2.1 INDUSTRY OVERVIEW

Indian Scenario

Global Scenario

Players in the Industry with the Market Shares

2.2 COMPANY OVERVIEW

Mission, Vision of the Company

3) ORGANIZATION STRUCTURE OF THE COMPANY

Products and Services offered by the Company

4) SWOT OF THE COMPANY

5) FINDINGS

5

6) RECOMMENDATIONS

7) BIBLIOGRAPHY

CHAPTER 1:EXECUTIVE SUMMARY

6

1) Executive Summary:

The objective of the project is to know the present status of the Life Insurance products in the

market, the awareness and perception levels among the consumers. The present scenario of in-

surance sector is not only confined to selling of life insurance products, advertising and sales

promotion but it also includes consumer satisfaction as a whole.

According to the study of the market, it is being observed that markets are doing well in invest-

ing in life insurance products. In the coming future a good and proper financial planning is re-

quired to invest money in financial products because there is a good potential in the market to in-

vest.

For gathering the primary data questionnaire was administered to know the consumer perception

of the Life Insurance Products, their investment patterns and general suggestions by the con-

sumers and secondary data is collected through Internet, Magazines, Company Website and other

advertising tools.

7

CHAPTER 2:

INTRODUCTION

8

2) Introduction:

Insurance constitutes one of the major segments of the financial market. Insurance services play

predominant role in the process of financial intermediary. Today insurance industry is one of the

most growing sectors in India. There is lot of potential in the Indian Insurance Industry. There

are many issues, which require study. The scope of the study of insurance industry of India

would be very great as there are ongoing developments in the industry after the opening of the

sector. In the past few years this sector has undergone many changes, like offering better ser-

vices, quick settlement of the policies taken by the consumers, following the regulations put by

the IRDA( Insurance Regulatory and Development Authority) etc… In the present world many

insurance companies have entered the market and the environment has become more and more

competitive. Creation of differentiation is becoming tough for the consumers as all companies

are offering the same kind of products and services.

Objective of the Project:

The objectives of the project are as mentioned below.

1. to make the comparative analysis of life insurance products offered by Bharti AXA with

that of its competitors

2. to know the various types, their features and benefits of different life insurance products

3. to understand the investment pattern of different levels of investors

4. to find out the consumer perception on different life insurance products and determine

their preference towards public insurance companies and private insurance companies.

9

The major market players which are considered for this project are based on the market shares

and their performance in the insurance sector. They are as follows.

1. Bharti AXA Life Insurance

2. HDFC Standard Life

3. ICICI Prudentials

4. Birla Sun Life Insurance

5. Life Insurance Corporation of India

6. SBI Life Insurance

The study is based on both the primary and secondary data.

The primary data were collected using a questionnaire. This was prepared to know the consumer

perception of life insurance products. The questionnaire was clearly explained to the respondents

in detail and they were asked to give the perception of life insurance products as delivered by the

life insurance companies. These questions were prepared for effective analysis of the data. This

was administered through mail and in person to about 50 respondents. These comprises of em-

ployees of MNC’s and government employees from Bangalore.

The secondary data is collected through Internet, Magazines and other advertising tools.

The study is done to evaluate and analyze the findings so as to know about the recent trends in

the Insurance Sector.

2.1 Industry Overview:

2.1.1 About Insurance Industry:

Insurance is a contract between two parties whereby one party called insurer undertakes in ex-

change for a fixed sum called premiums, to pay the other party called insured a fixed amount of

money on the happening of a certain event. Insurance is a protection against financial losses aris-

10

ing on the occurrence of an unexpected event. Insurance companies collect premiums to provide

for the protection. For example, in a Life Policy, by paying the premium to the insurer, the fam-

ily of the insured person receives compensation on the death of the insured.

It is a system by which the losses suffered by a few are spread over many, exposed to similar

risks. It is also a protection against financial loss arising on the happening of an unexpected

event. The companies collect premiums to provide for its protection. Companies act as trustees to

the collected. If there is any loss, then it is paid out of the amount premiums collected from the

insuring public.

Insurance is desired to safeguard oneself and one’s family against possible losses on account of

risks and perils. It provides financial compensation for the losses suffered due to the happening

of any unforeseen events. By taking life insurance a person can have peace of mind and need not

worry about the financial consequences in case of accidental death. Some insurance contracts are

made compulsory by legislation. Some of the insurance contracts which are made compulsory

are Motor Vehicle Insurance, Environmental Protection Act etc…

Insurance in India:

Insurance is a federal subject in India and has history dating back to 1818. Life and general in-

surance in India is still a nascent sector with huge potential for various global players with the

life insurance premiums accounting to 2.5% of the country’s GDP while general insurance pre-

miums to 0.65% of India’s GDP. Currently, the largest life insurance company is still owned by

the Government of India. The Indian insurance sector is considered as a booming sector in the

coming future with every global insurance company wanting to have a lion’s share.

History of Insurance:

Insurance in India has its history dating back to 1818 when Oriental Insurance Company was

started by Europeans in Kolkata to cater the needs of European community. Pre-independent era

11

in India saw discrimination among the life of the foreigners and Indians with the higher premi-

ums being charged with the latter. In 1870, the Bombay Mutual Life Assurance Society, the

first Indian insurance company covered Indian lives at normal rates. The Life Insurance Compa-

nies Act and Provident Fund Act were passed to regulate the insurance business in 1912. The

oldest insurance company in India is National Insurance Company Ltd, which was founded in

1906 is still doing the business even today. The insurance industry earlier consisted of only two

types of insurers Life insurers i.e Life Insurance Corporation of India (LIC) and General Insurers

i.e General Insurance Corporation of India (GIC). GIC has four subsidiary companies.

In December 2000, these subsidiary companies have been separated from the parent company

and made as independent insurance companies: Oriental Insurance Company Limited, New India

Assurance Company Limited, National Insurance Company Limited and United India Insurance

Company Limited.

Advantages of Life Insurance

1. Protection against risk of untimely death

2. Protection during old age

3. Forced savings

4. Educational requirements and charity

5. Nomination and assignment

6. Loans from the investment company

7. Investment options

8. Tax benefits

12

Types of Insurance Products:

1. Term Assurance Plan

2. Endowment Assurance Plan

3. Money Back Policy

4. Whole Life Plan

5. Pension Plan

6. Child Plan

7. Unit Linked Insurance Plan

8. Health Plan

Different Insurance Companies in India:

In the present scenario the insurance sector is an upcoming sector. The insurance sector got liber-

alized in 2000 after about 50 years. Insurance sector was once a monopoly with LIC as the only

company. But now the market opened up and large number of insurance both (private and pub-

lic) has entered the Indian market. There are about 15 private life insurance companies that have

entered the sector. After their entry the market share of LIC has considerably got reduced. The

private companies have improves their market share to 18% and able to expand their market

growing at about 30% per annum. Private players have made innovations in market channels, ad-

vertising of products, training agents and employees in providing services to the consumers,

opened outlets in rural areas, creating awareness among people about insurance and its benefits.

13

The various private life insurers are

1. Aviva Life Insurance Co. India Pvt Ltd.

2. Bajaj Allianz Life Insurance Co. Ltd.

3. Bharti AXA Life Insurance Co. Ltd

4. Birla Sun Life Insurance Co. Ltd

5. HDFC Standard Life Insurance Co. Ltd

6. ICICI Prudential Life Insurance Co. Ltd

7. IDBI Fortis Life Insurance Co. Ltd

8. ING Vysya Life Insurance Co. Ltd

9. Kotak Mahindra Old Mutual Life Insurance Ltd.

10. Max New York Life Insurance Co. ltd

11. Met Life India Insurance Co. Ltd

12. Reliance Life Insurance Co. Ltd

13. SBI Life Insurance Co. Ltd

14. Shriram Life Insurance Co. Ltd

15. Tata AIG Life Insurance Co. Ltd

The various other general insurance companies are

1. National Insurance Company Ltd

2. Reliance General Insurance

3. Oriental Insurance Company

4. United India Insurance Co. Ltd

5. New India Assurance Co. Ltd

6. Bajaj Allianz General Insurance Co. Ltd

7. ICICI Lombard General Insurance Ltd

14

Difference between Life Insurance and non Life Insurance:

Two types of insurance people commonly purchase is

1) Life Insurance 2) General Insurance

Life insurance is a non personal insurance contract. This means that the policyholder and the

person being insured do not have to be the same person whereas General insurance is a personal

contract where the insurance company contracts with you directly for insurance protection.

Life insurance insures your life or the life of someone that you have an economic interest in, like

your spouse, children, siblings or business partners. When the insured individual dies, the life in-

surance policy pays a death benefit that is fixed. This is called a valued contract. A valued con-

tract pays a fixed sum of money, regardless of the nature of the loss insured by the contract. Gen-

eral insurance insures homes, automobiles and other personal property. This type of insurance is

sometimes referred to as “property and casualty insurance.” General insurance is indemnity in-

surance. Indemnity insurance pays just enough money to you to repair or replace the insured

property.

The benefit of life insurance is that it pays off any financial obligations you have left after you

die. It can pay more than that, however, because life insurance pays a fixed amount. Death bene-

fits can be used to create the wealth for the surviving beneficiaries. General insurance is benefi-

cial in that the insurance ensures that, almost regardless of the damage done, that the property

will be repaired or replaced. While general insurance generally has a maximum payout deter-

mined by the value of your property, it does not pay a fixed amount.

Market Players Along With Market Shares

15

The top 5 private life insurance companies in India are,

ICICI Prudential Life Insurance

Bajaj Allianz

SBI Life [Part of the SBI group, though no direct interference of Govt of India]

HDFC Standard Life

Reliance Life

Figure 1: Market Share Of Life Insurance Companies

Website: http://1.bp.blogspot.com/-qyxg7ZBvGjM/Tc56NlxlqwI/AAAAAAAAAbc/g9oXnlMjBW4/

s1600/marketshare2011pol_2.jpg

Source: IRDA (depending upon number of policies as on 2010-11)

16

http://1.bp.blogspot.com/-qyxg7ZBvGjM/Tc56NlxlqwI/AAAAAAAAAbc/g9oXnlMjBW4/s1600/marketshare2011pol_2.jpg

http://1.bp.blogspot.com/-qyxg7ZBvGjM/Tc56NlxlqwI/AAAAAAAAAbc/g9oXnlMjBW4/s1600/marketshare2011pol_2.jpg

2.2 Company Profile:

2.2.1 About the Company:

Bharti AXA Life Insurance is a joint venture between Bharti, one of India‘s leading business

groups with interests in telecom, agri business and retail, and AXA, world leader in financial

protection and wealth management. The joint venture company has a 74% stake from Bharti and

26% stake of AXA.

The company launched national operations in December 2006. Their business philosophy is built

around the promise of making people "Life Confident".

The Company Profile:

NAME OF THE COMPANY: BHARTI AXA LIFE INSURANCE COMPANY

HEAD OFFICE: Goregaon (East), Mumbai, India

FOUNDED: The company came into existence in DEC 2006 by the

merger of India‘s telecom major BHARTI AIRTEL with a

74 % stake and the global insurance majors AXA with a

26% stake in the company.

VISION OF THE COMPANY: To be the leader and one of the preferred companies for

financial protection and wealth management in India.

VALUES OF THE COMPANY:

Professionalism

17

Innovation

Team Spirit

Pragmatism

CHAIRMAN: Mr. Sunil Bharti Mittal

CEO: Mr. Sandeep Ghosh

BRANCHES: Currently the company has 198 branches in INDIA.

EMPLOYEES: The Company has more than 5200 employees all over

India.

About Bharti:

Bharti Enterprises is one of India’s leading business groups with interests in telecom, agricultural

business, financial services, and retail. Bharti has been a pioneering force in the telecom sector

with many firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one of

India’s leading private sector providers of telecommunications services with an aggregate of over

110 million customers, spanning Mobile services, Telemedia services and Enterprise services.

Bharti Airtel has been ranked amongst the best performing companies in the world in the Busi-

nessWeek IT 100 list 2007. Bharti Teletech is the country’s largest manufacturer and exporter of

telephone terminals. Bharti has a joint venture – Bharti Del Monte India (P) Ltd – with Del

Monte Foods India Pvt. Ltd., to offer fresh and processed fruits and vegetables in the domestic as

well as international markets including Europe, USA and Middle East. Bharti has recently for-

ayed into retail business under Bharti Retail Pvt. Ltd. It also has a joint venture - Bharti Wal-

Mart Private Ltd. - with Wal-Mart for wholesale cash-and-carry and back-end supply chain man-

agement operations in India.

18

About AXA:

AXA Group is a worldwide leader in Financial Protection. AXA’s operations are diverse geo-

graphically, with major operations in Europe, North America and the Asia/Pacific area. In 2010,

total revenues amounted to Euro 91 billion and total revenues underlying earnings to Euro 3.9

billion.The above mentioned companies Bharti Enterprises and AXA are the promoters of Bharti

AXA Life Insurance Company.

Vision and values followed by the company:

19

CHAPTER 3

Organizational Structure

20

Global and Indian Operations of Bharti AXA Life Insurance:

Bharti AXA Life Insurance Company Ltd., the joint venture of Bharti Enterprises and AXA Asia

Pacific Holdings Ltd., has no operations outside India. However, AXA group, the majority stake-

holder in AXA Asia Pacific Holdings Ltd., is a global player in the life and non-life insurance

business, asset management and other financial services with presence in all habitable continents

and over 95 million clients worldwide. It is 9th largest company in world in terms of revenue as

per Fortune Global 500 list of 2010.

21

Bharti AXA Life Insurance Company Ltd. has a pan-India presence with around 100 offices na-

tion-wide. It offers both traditional and ULIP plans to its existing customers and the prospects.

Under traditional plan, it offers both term as well as endowment policies. As per the revenue ac-

count of the company, the net premium for first nine months of FY2010 was INR 539.69 crore as

against INR 393.98 crore for the same period in the last fiscal, a growth of 37%. As per the latest

estimates, the market share of the company in terms of net premium was 0.4% in last fiscal.

Products and Services Offered by Bharti AXA Life Insurance:

Bharti AXA Life Insurance offers both individual plans and group plans as their products and

services for the customers.

The Individual Plans are as follows:

Protection Plans:

1. Bharti AXA Life Elite Secure

2. Bharti AXA Life Secure Confident

3. Bharti AXA Life Family Income Secure

4. Bharti AXA Life Protect Plus

5. Bharti AXA Premium Waiver Rider

Wealth Creation with Protection:

Bharti AXA Life Child Plans

Bharti AXA Life Bright Stars EDGE

Bharti AXA Life Future Champs

22

http://www.bharti-axalife.com/life-insurance-policies/Life-Protect-Plus.aspx

http://www.bharti-axalife.com/life-insurance-policies/LifeFamily-IncomeSecure.aspx

http://www.bharti-axalife.com/life-insurance-policies/SecureConfident.aspx

http://www.bharti-axalife.com/life-insurance-policies/Elite-Secure.aspx

Bharti AXA Life Guaranteed Plans

Bharti AXA Life Save Confident

Bharti AXA Life True Wealth

Bharti AXA Life Aajeevan sampati

Health Plan:

Bharti AXA Life Easy Health

Retirement Plan:

Bharti AXA Life Wonder Years Retirement Plan

The Group Plans are as follows:

Life Insurance:

Bharti AXA Life Shield

Bharti AXA Life Sanjeevani

Credit Protection:

Bharti AXA Life Credit Secure

Bharti AXA Life Mortgage Credit Shield

Bharti AXA Life Credit Shield

Bharti AXA Life Premier Protect Home Shield

Health Plan:

Bharti AXA Life Swasthya Sanjeevani

23

INTRODUCTION ABOUT THE PLANS

1. CHILD PLANS

BHARTI AXA LIFE BRIGHT STAR PLUS

Features:

Entry Age(Last Birthday) Minimum Age 18 years.

Policy Term (PT) 7-25 years, subject to maximum maturity

age of 70 years

Premium Payment Term(PPT) 3 years/5 years/equal to policy term

Annual Premium Minimum Rs. 15000 if PPT = PT

Minimum Rs. 50,000 if PPT = 3years/5years

Maximum=No Limit

Top-up Premium Minimum: Rs. 1,000;

Maximum: 25% of total regular premium paid

Sum Assured (SA) Minimum: 5* Annual Premium

Maximum: 10*Annual premium

Riders Available In Built: Waiver of Premium

Optional:

Accidental Death Benefit (ADB) Rider.

Comprehensive Health Benefit (CHB) Rider.

24

Premium FrequencyYearly, Half yearly, Quarterly, Monthly

Fund Options Grow money plus fund, Growth opportunities plus fund, Build India fund, Save and Grow money fund, Steady money fund, Safe money fund.

Partial Withdrawal Regular Premium: After 5 Policy Years

Top-up Premium: After 3 Years

Minimum: Rs. 1000

Maximum: Fund Value should not be less

than 120% of annual premium.

Switches 1st 12 switches free of charge in a Policy year

Subsequent switches are charged at Rs.100

per switch is levied.

Minimum switch amount: Rs. 1000

Benefits:

Death Benefit

-Sum Assured will be paid immediately.

-All the future premiums will be paid by Bharti AXA Life in to the policy fund value.

Jumpstart Benefit

The Jumpstart benefit is credited to the investment funds during the policy term depend-

25

ing upon the policy term option chosen.Policy Term Jumpstart Benefit Credited to investment

Funds

7 years & 10 years 5% of average fund value. At maturity.

15 years 7% of average fund value At maturity.

20 years & 25 years 7% of average fund value. 5 years before maturity

Tax BenefitThe premium paid will be eligible for tax benefit as per Section 80C, 80D and Section 10(10D) of the Income Tax Act, 1961.

Charges:Policy Administration Charges: This charge is deducted by cancellation of units from the policy fund value on monthly basis. The charge is Rs. 60 per month increasing at 5% p.a. on every policy anniversary.

Fund Management Charges:

Fund Name Percent of Policy Fund Value (p.a.)

Growth Opportunities Plus 1.35%

Grow Money Plus 1.35%

Build India 1.35%

Save and Grow Money 1.25%

Steady Money 1.00%

Safe Money 1.00%

26

Allocation Charges:

Regular premium:

Allocation charges for PT

Policy

Term Pol-

icy Year

Annual premium 7 Years 10 Years 15 Years 20 Years 25 Years

Year 1 >100000 28% 35% 35% 45% 50%

<=100000 25% 32% 32% 36% 50%

Year 2 Both Premium

bands

9% 15% 15% 24% 24%

Year 3 Both Premium

bands

5% 5% 5% 5% 5%

Year 4++ 0% 0% 0% 0% 0%

Surrender Charge:

This charge is as a percentage of fund value.

Policy Term

Policy Year7 Years 10 Years 15 Years 20 Years 25 Years

Years 1 75% 75% 91% 91% 91%

Years 2 50% 50%80%

80% 80%

Years 3 25% 25% 50% 50% 50%

Years 4 0% 0% 25% 25% 25%

27

Years 0% 0% 10% 10% 10%

Years 0% 0% 0% 0% 0%

If the policy is surrendered before completion of first three policy years, surrender value

will be payable after completion of three policy years.

ICICI PRU SMART KID UNIT-LINKED REGULAR PREMIUM

Features:

Entry Age(Last Birthday)Parent: 20 – 60 years

Child: 0 – 15 years

Policy Term (PT) Parent: 75 years


Premium Payment Term(PPT) 10 -25 years, subject to maximum maturity age of

75 years

Annual Premium Minimum Rs. 10000

Maximum=No Limit


28

Maximum: 25% of total regular premium paid

Sum Assured (SA) Minimum: 1,00,000

Maximum: 5*Annual premium

Riders Available Waiver of Premium

Accidental Death & Disability

Benefit (ADDB) Rider.

Income Benefit(IB) Rider

Premium FrequencyYearly, Half yearly, Quarterly, Monthly

Fund Options R.I.C.H II, Multiplier II, Flexi Growth II,

Flexi Balanced II, Balancer II, Protector II, Pre-server, Return Guarantee Fund.

Partial Withdrawal Regular Premium: After 5 Policy Years

Top-up Premium: Ant time during PT

Minimum: Rs. 2000

Maximum: 25% of Fund Value

1 PW in a Policy Year

Maximum 5PW during entire PT

29


Subsequent switches are charged at Rs. 100

per switch


Benefits:

Death Benefit:

-Sum Assured will be paid immediately.

-All the future premium will be waived and paid by the company till maturity of the policy.

Maturity Benefit:

Fund value pertaining to Regular Premium and Top-up Premium will be paid at the time

of maturity.

Tax Benefit:

The premium paid will be eligible for tax benefit as per Section 80C, 80D and Section 10(10D)

of the Income Tax Act, 1961.

Charges:

Policy Administration Charges:

Policy administration charge will be Rs. 60 per month.


This charge is levied on each of the investment funds and is adjusted daily in the unit price calcula-

tion.

30

Fund Name Percent of Policy Fund Value (p.a)

Protector II 0.75%per annum

Preserver 0.75%per annum

Balancer II 1.00%per annum

Flexi Balanced II 1.00%per annum

Flexi Growth 1.50%per annum

Multiplier II 1.50%per annum

Return Guarantee 1.50%per annum

Allocation Charges:

Regular premium:

Annual Pre-

mium

Year 1 Year 2 – 5 Year 6 – 10 Year 11 Onwards

<20,000 20% 5% 2% 1%

>=20,000 to

<50,000

19% 5% 2% 1%

>=50,000 18% 5% 2% 1%

Top-up Premium:

The allocation charge shall be 1% of top-up premium.

Surrender Charges:

Completed policy years for Surrender value as a % of

Fund ValueSurrender Charge

31

which premiums are paid

Less than 1 year 0% 100%

1 year 25% 75%

2 year 40% 60%

However, this surrender value would be payable only after completion of three policy

years or whenever the policy is surrendered thereafter.

Following are the surrender values and charges applicable after payment of 3 full years of pre-

mium.

No. of completed policy

years

Surrender value Surrender Charge

3 policy years 9 4%

4 policy years 9 2%

5 policy years 1 0%

SBI LIFE- UNIT PLUS CHILD PLAN

Features:

Entry Age(Last Birthday) Parent: 18 – 57 years

32


Policy Term (PT) Min.: 8yrs or (18 – child‘s age at entry)

whichever is higher

Max. : 25 yrs

Premium Payment Term(PPT) 3yrs/ 5yrs/ 7yrs/ Till the child attains 18yrs

Annual Premium Minimum Rs. 84,000; for PPT = 3yrs

Minimum Rs. 60,000; for PPT = 5yrs Minimum Rs.

48,000; for PPT = 7yrs Minimum Rs. 12,000; for

PPT = PT Maximum = No Limit


Maximum: 25% of total regular premium paid.

Sum Assured (SA) Minimum: 5*Annual Premium

Maximum: For age 18 – 40 yrs = 25*AP For age 41

– 50 yrs = 20*AP

For age 51 – 57 yrs = 15*AP

Riders Available Waiver of Premium

Accidental Death & Disability(ADD) Rider

Dhanvantri Supreme (CI) Rider.

Maturity Age Parent: 65 years

Child: 18 - 25 years

33

Sum Assured (SA) Minimum: 5*Annual Premium

Maximum: For age 18 – 40 yrs = 25*AP For age 41

– 50 yrs = 20*AP

For age 51 – 57 yrs = 15*AP

Fund Options Equity Optimizer Fund, Equity Fund, Bond

Fund, Growth Fund, Balanced Fund.

Partial Withdrawal (PW) Regular Premium: After 3 Policy Years

Top-up Premium: Any time during PT Minimum: Rs. 2000,

Maximum: 25% of Fund value

4 PW are free in a Policy Year

Maximum 5 PW during entire PT


Subsequent switches are charged at Rs. 100 per switch.

Minimum switch amount: Rs. 10,000.

Benefits:

Death Benefit:

34

Sum Assured will be paid immediately.

The entire future premium will be waived and paid by the company till maturity of the policy.

Maturity Benefit:

Fund value pertaining to Regular Premium and Top-up Premium will be paid at the time of

maturity.

Loyalty Benefit:

To celebrate the 18th birthday of your child, SBI Life offer loyalty units by way of free

allocation of units based on the average of last 24 months Fund value.

0.15*average last 24 months fund value*No. of policy till age 18

Tax Benefit:

The premium paid will be eligible for tax benefit as per Section 80C, 80D and Section 10(10D)

of the Income Tax Act, 1961.

Charges:


Policy administration charge will be Rs.60 per month. This charge will increased by 2% per an-

num for each subsequent year on the 1st business day of the policy month following 1st April

each year, subject to maximum of Rs.300 per month.


This charge is levied on each of the investment funds and is adjusted daily in the unit price calcu-

lation.

Fund Name Percent of Policy Fund Value (p.a.)

Equity Fund 1.50% per annum

35

Equity Optimiser Fund 1.50% per annum

Bond Fund 1.00% per annum

Balanced Fund 1.25% per annum

Growth Fund 1.35% per annum

Allocation Charges:

Regular premium:

Annual

Premium

Year 1 Year 2 – 3 Year 4 – 7 Year 8 Onwards

Up to 500,000 18% 5% 2% 1%

500,100 to

10,00,000

17% 5% 2% 1%

10,00,000 &

Above

15% 5% 2% 1%

Top-up Premium:


Surrender Charges:

Year 2 3 4 5 6 & Onwards

Surrender 25% 15% 4% 2% Nil

36

charges

2. PENSION PLANS

Bharti AXA Life Dream Life Pension Plus:

Features:

Entry Age Min: 18 years

Max: 75 years

Vesting/Maturity Age Min: 40 years

Max: 90 years

Policy Term Min: 10 years

Max: Vesting age chosen

Annual Premium Min: Rs.12,000 For PT > 20 years

Rs.15,000 For PT > 15 years

Rs.10,000 For PT< 15 years

Rs. 50,000 for Single Premium

Max: No Limit

Additional Regular Premium Minimum: Rs.1000

37

Maximum: No Limit

Top-up Premium Minimum: Rs.1000

Maximum: No Limit

Fund Options Grow Money Pension Plus, Growth Opportunities Pension Plus, Build India Pension Fund, Save and grow Money Pension, Steady Money Pension.


Subsequent switches are charged at Rs. 100 per switch,

Minimum switch amount: Rs. 1000.

Benefits:

Death Benefit:

In case of death during the policy term, the nominee will get the entire fund value and the policy

will cease to exist.

Maturity Benefit:

Take up to 1/3rd of the fund value as lump sum and use the balance to purchase an annuity from

Bharti AXA Life.

Buy an annuity from any other life insurance company.

Tax Benefit:

Tax benefit will be as per Section 80C/80CCC (1) & Section 10(10A)(3) of the Income Tax Act,

1961.

Charges:

38


Policy administration charge will be Rs.60 per month (Rs.35 in case of Single Premium

policies). This charge will increase from 1st Jan every year by 5%.


The charge is levied on each of the investment funds and adjusted in a unit price calculation on a daily

basis.

Fund Name Fund Management Charge (p.a.)

Grow Money Pension Plus 1.35%

Growth Opportunities Pension Plus 1.35%

Build India Pension Fund 1.35%

Save and Grow Money Pension 1.25%

Steady Money Pension 1.00%

Safe Money Pension 1.00%

Allocation Charges:

Annual Regular Premium:

Annual Regular

Premium Band

Year 1 Year 2-4 Year 5+

Rs.12,000 – 99,999 19% 9% 0%

Rs.1,00,000 & above 12% 9% 0%

39

Single Premium:

Single Premium Band Premium Allocation Charge

Rs.50,000 – 99,999 6%

Rs.1,00,000 & above 2.5%

Top-up Premium:

The allocation charge shall be 2% of top-up premium

Surrender Charge:

The surrender charge is applicable as and when customer surrenders his policy. The surrender

value that you will receive will be the policy fund value less this charge. If policy is surrendered

within first three years policy years then the surrender value as on the date of intimation of

surrender will be paid only after completion of three policy years.

Surrender Charge as a Percentage of Policy Fund Value.

Policy Year

Annual Regular Premium Single Premium

1 91% Surrender Not Allowed



4 15% 5%

5 10% 3%

6 NIL 0%

40

ICICI PRU LIFE TIME SUPER PENSION

Features:

Entry Age Min: 18 Years

Max: 65 Years


Max: 75 years

Policy Term (PT) Min: 10 years

41

Max: 57 years

Annual Premium(APE) Min: 10,000

Max: No Limit

Sum Assured(SA) Minimum: 100,000

Maximum: PT*Annual Premium

Top-up Premium Minimum: 2000

Maximum: No Limit

Fund Options Pension R.I.C.H. II, Pension Flexi Growth II,

Pension Multiplier II, Pension Flexi Balanced

II, Pension Balancer II, Pension Protector II,

Pension Preserver, Pension Return Guarantee


Subsequent switches are charged at Rs. 100 per switch


Riders Available Accidental Death & Disability Rider, Waiver

of Premium Rider

Benefits:

Death Benefit:

42

The Nominee will get the higher of sum assured or fund value as lump sum where spouse is not

the nominee.

Where spouse is nominee, this amount can be given as lump sum or can be used to purchase an

annuity from the company. Alternately, 1/3rd of this value can be taken as lump sum and balance

can be used to purchase an annuity.

Maturity Benefit:


ICICI Prudential.

Buy an annuity from any other life insurance company.

Tax Benefit:

Tax benefit will be as per Section 80CCC & Section 10(10A) of the Income Tax Act, 1961.

Charges:


Policy administration charge will be Rs. 40 per month.



basis.


Pension R.I.C.H. II 1.50% per annum

Pension Flexi Growth II 1.50% per annum

Pension Multiplier II 1.50% per annum

Pension Return Guarantee Fund 1.50% per annum

Pension Balancer II 1.00% per annum

43

Pension Preserver 0.75% per annum

Allocation Charges:

Regular premium:

Annual

Premium

Year 1 Year 2 Year 3 – 10 Year 11

Onward

10,000-19,999 20% 9% 1% Nil

20,000-49,999 17% 9% 1% Nil

50,000 & above 14% 9% 1% Nil

Top-up Premium:


Surrender Charge:

Completed policy years

for which premiums

Surrender value as a %

of Fund Value

Surrender Charges

Less than 1 year 0% 100%

1 25% 75%

2 40% 60%

44

However, this surrender value would be payable only after completion of three policy years or

whenever the policy is surrendered thereafter.

Following are the surrender values and charges applicable after payment of 3 full year‘s pre-

mium.

No. of completed policy Surrender Value Surrender Charge

3 policy years 96% 4%

4 policy years 98% 2%

5 policy years & above 100% 0%

SBI LIFE UNIT PLUS II PENSION

Features:

Entry Age Min: 18 Years

Max: 65 Years


Max: 70 years

Policy Term (PT) Min: 5 years

Max: as per the vesting age chosen

Annual Premium(APE) Min: 24,000

45

Min: 25,000 for single premium

Max: No Limit

Sum Assured(SA) Single Premium Mode

Age 18 – 35 125% of SP. MAX: 10

lakh

36 – 45 years Same, MAX: 5 lakh

40 – 60 years Same, MAX: 12 lakh

Regular Premium Mode

Age 18 – 35 MAX: 10 lakh

36 – 45 years MAX: 5 lakh

40 – 60 years MAX: 1.2 lakh

Top-up Premium Minimum: 5000

Maximum: No Limit

Fund Options Equity Optimizer, Equity Pension, Bond

Pension, Growth Pension, Balanced Pension


Subsequent switches are charged at Rs. 100 per switch

Minimum switch amount: Rs. 10,000

46

Riders Available Accidental Death & Permanent Disability

Rider, Dhanvantri Supreme (Critical illness)

Rider

Benefits:

Death Benefit:

The Nominee will get the higher of sum assured or fund value.

Maturity Benefit:


SBI Life. Buy an annuity from any other life insurance company.

Tax Benefit:

Tax benefit will be as per Section 80CCC (1) of the Income Tax Act, 1961.

Charges:


Policy administration charge will be Rs.60 per month. This charge will increased by 2% per

annum for each subsequent year on the 1st business day of the policy month following 1st April

each year, subject to maximum of Rs.300 per month.



basis.


47

Equity Optimizer Fund 1.50% per annum

Equity Pension Fund 1.50% per annum

Bond Pension Fund 1.00% per annum

Growth Pension Fund 1.35% per annum

Balanced Pension Fund 1.25% per annum

Allocation Charges:

Regular premium:

Annual

Premium

Year 1 Year 2 & 3 Year 4 & 5 Year 6-10 Year 11

Onward

24,000 - 99,999

15% 7.5% 5% 2% Nil

100,000 -

49,999

12% 5% 5% 2% Nil

500,000 & above

9% 3% 3% 2% Nil

48

Single Premium:

Annual Premium Allocation Charges

25,000-100,000 4%

100,000-500,000 3%

500,000 & above 2%

Top-up Premium:

The allocation charge shall be 1% of top-up premium received during 1st 10 policy years. 11th

onward allocation charges will be nil.

Surrender Charge:

The surrender charge is applicable as and when customer surrenders his policy. The sur-

render value that you will receive will be the policy fund value less this charge

Policy Year For Regular Premium Mode

For single Premium Mode

Year 4 & 5 2% of F.V. Nil

Year 6-10 1% of F.V. Nil

11 onwards Nil Nil

49

3. PROTECTION PLANS

BHARTI AXA LIFE SECURE CONFIDENT

Features:

Entry Age Minimum: 18 years

Maximum: 55 years

Maturity Age Minimum: 28 years

Maximum: 65 years

Policy Term (PT) 10 – 30 years

Sum Assured (SA) Minimum: 5 lacs

Maximum: Rs.24,99,999

Premium Frequency Single

Regular: Yearly, Half-yearly, Quarterly & Monthly

Riders Available In-Built: No

Additional: Accidental Death Benefit, critical illness benefit rider

Benefits:

Death Benefit:

50

In case of your unfortunate death during the policy term, nominee will receive the full Sum

Assured.

Maturity Benefit:

As this is a purely protection plan (Term Plan), there is no maturity benefit.

Tax Benefit:

Tax Benefits will be as per the Section 80C, 80D & 10(10D) of the Income Tax Act, 1961.

ICICI PRU PURE PROTECT:

Features:


Maximum: 55 years

Maximum Coverage Age 75 years


Premium Minimum: 2400 per annum

Sum Assured (SA) Maximum: 24,99,999 for Classic

51

Minimum: 25 lacs for Elite

Maximum: No Limit


Additional: Accidental Death & Disability

Benefit Rider, Waiver of Premium Rider

Benefits:

Death Benefit:


Assured.

Maturity Benefit:


Tax Benefit:

Tax Benefit as per section 80C.

SBI LIFE- SHIELD

Features:


Maximum: 60 years

Maximum Coverage Age 65 years


52

Sum Assured (SA) Minimum: 3 lakh

Maximum: No Limit


Additional: Accidental Death & Permanent

Disability Benefit Rider, Premium Waiver

Benefit Rider

Benefits:

Death Benefit:


Assured.

Maturity Benefit:


Tax Benefit:

Tax Benefit as per Section 80C & 10(10D).

CHAPTER 453

SWOT ANALYSIS

SWOT Analysis of Bharti AXA Life Insurance:

Strengths Weaknesses

54

Excellent services

Brand image of Bharti

Customization of product

as per customer needs

Business Experience

Strong financial base

Innovative product technol-

ogy, organizational culture

and environment

Flexible working hours for

the employees

Loads of competitors in the mar-

ket

Offer product difference in pre-

mium and offerings

Higher premium as compared to

other companies

Large sales development

Opportunities Threats

Uncapping of huge insurance

market

Setting up a bank and collabo-

rating it with the insurance

Targeting the pension field as

old people want good life

Attract customers by customiz-

ing children plans as they get

sold like hot cakes.

Weak perception of private play-

ers in the Indian minds due to fi-

nancial scams

Large number of insurance play-

ers

Changing of rules day by day

makes it difficult for the company

Current government policies do not discourage gross domestic savings.

55

CHAPTER 5

METHODOLOGY

OBJECTIVE OF THE STUDY

The main objectives of this study are:-

56

1. To do comparative analysis of the plans of Bharti AXA Life Insurance Company Ltd. with its competitors.

2. To compare the features offered in various plans.

3. To compare the various charges levied in the plans.

4. To find out a plan that best secures the child‘s future.

5. To find out one best retirement solution and protection plan that protects your life in cheapest cost.

In an increasingly competitive environment, where insurance companies fight for the same

customers, the companies need to keep the plans as competitive as possible and for that

companies need to keep the charges as low as possible. With this comparative analysis of

different plans charges, benefits and features, we will be able to find out where company is good

as compared to other players in the market and where company can improve.

It will also help the company, customers and other persons involved with the company as they

can compare the plans and find out the details as per the requirement.

METHODOLOGY

57

RESEARCH APPROACHES

Two types of approaches are used during this study:

1. Analytical

2. Descriptive

DATA COLLECTION METHODS

To conduct the Business research, the data is collected by Secondary Data. Secondary data is

one which already exists and is collected from the published sources.

POPULATION:

The following three Insurance companies made the population of this study:

Bharti AXA Life Insurance Co. Ltd

ICICI Prudential Life Insurance Co Ltd

SBI Life Insurance Co Ltd

SAMPLE:

Child Plan, Pension Plan and Term Plan were taken for comparison as samples.

COMPARISON TECHNIQUE

The plans of selected companies were compared based on three important factors:

• Plan features

• Allocation charge

• Policy Administration charges.

58

Each feature fetches 1 point.

Points Regarding Allocation charges & Policy Administration charges were as follows:

• Least Allocation Charges & Policy Admin. Charges fetched 15 points each.

• Next least Allocation Charges & Policy Admin. Charges fetched 10 points each.

• Highest Allocation Charges & Policy Admin. Charges fetched 5 points each.

Then all the points regarding features, allocation charges and policy administration charges were

added to find out the total points collected by the plans of each company.

The plan having highest points is rated 1 and so on.

The Term plan is compared on other basis because there are no allocation charges and no policy

administration charges.

The annual premium is calculated for different age people opting for the same policy term and

same sum assured.

The company offering least annual premium in an age group for the same policy term and same

sum assured is rated 1 and so on.

59

CHAPTER 6.

DATA ANALYIS AND IN-

TERPRETATION

60

DATA ANALYSIS

COMPARISON OF CHILD PLANS

Product Features Bharti AXA Life Bright Star Plus

ICICI PRU Smart Kid New ULRP

SBI Life- Unit Plus

Child Plan

Cover on parent Yes Yes Yes

Cover On Child No No No

WOP Yes Yes Yes

IB Rider Yes Yes No

ADB Rider Yes Yes Yes

CHB Rider Yes Yes Yes

Increase/Decrease Premium

Yes No Yes

Increase/Decrease S.A Yes Yes Yes

Top-up premium Yes Yes Yes

Partial Withdrawal Yes Yes Yes

Cover continuance op-

tion

Yes Yes Yes

Premium Re-direction Yes No Yes

Switches Yes Yes Yes

Systematic Transfer Yes Yes No

61

plan

Automatic Asset Allocation

Yes No No

Settlement option Yes Yes Yes

Loyalty Addition Yes No Yes

Free Look Period Yes Yes Yes

Total Points 17 13 14

Comparison of Charges

The charges are compared with the help of examples. Consider

Policy Term: 15 Years

Premium Payment Term: 15 Years

Annual Premium: 15,000/20,000/50,000

Allocation Charges

Year APE: 15,000 APE: 20,000 APE: 50,000

Bharti AXA Life Bright Star Plus

ICICI

PRU

Smart

Kid

ULRP

SBI

Life- Unit Plus

Child

Plan

Bharti AXA Life

Bright Star Plus

ICICI

PRU

Smart

Kid

ULRP

SBI

Life- Unit Plus

Child

Plan

Bharti AXA Life

Bright Star Plus

ICICI

PRU

Smart

Kid

ULRP

SBI

Life- Unit Plus

Child

Plan

1 5150 3000 2700 6000 3800 3600 16,000 900 9000

62

2 2250 750 750 3000 1000 1000 7500 250 2500

3 750 750 750 1000 1000 1000 2500 250 2500

4 0 750 300 0 1000 400 0 250 1000

5 0 750 300 0 1000 400 0 250 1000

6 0 300 300 0 400 400 0 100 1000

7 0 300 300 0 400 400 0 100 1000

8 0 300 150 0 400 200 0 100 500

9 0 300 150 0 400 200 0 100 500

10 0 300 150 0 400 200 0 100 500

11 0 150 150 0 200 200 0 500 500

12 0 150 150 0 200 200 0 500 500

13 0 150 150 0 200 200 0 500 500

14 0 150 150 0 200 200 0 500 500

15 0 150 150 0 200 200 0 500 500

Total

charges

8150 8250 6600 10,000 10,800 8800 26,000 26,500 22,000

From the above table, It can infer that in every case the allocation charges are least in SBI Life

Unit Plus Child Plan and highest in ICICI PRU SmartKid Unit Linked Regular Premium.

Hence rating According to Allocation charges are:

63

1. SBI Life Unit Plus Child Plan : 15

2. Bharti AXA Life Bright Star Plus : 10

3. ICICI PRU SmartKid Unit Linked Regular Premium : 05


Year Bharti AXA Life

Bright Star Plus

ICICI PRU SmartKid ULRP

SBI Life- Unit Plus Child Plan

1 660 720 750

2 693 720 765

3 728 720 780

4 765 720 795

5 803 720 811

6 843 720 828

7 885 720 844

8 929 720 861

9 976 720 878

10 1024 720 896

11 1075 720 914

12 1129 720 932

13 1186 720 951

64

14 1245 720 970

15 1307 720 990

Total 14,248 10,800 12,965

From the above table, it can infer that Policy Administration charges are least in ICICI PRU Life

SmartKid Unit Linked Regular Premium and highest in Bharti AXA Bright Star Plus.

Hence rating according to the Policy administration charges are:

1. ICICI PRU Life SmartKid Unit Linked Regular Premium: 15

2. SBI Life Unit Plus Child Plan : 10

3. Bharti AXA Life Bright Star Plus : 05

Total Points Collected:

Company Features Allocation

Charges

Policy Admin.

Charges

Total Points

BHARTI AXA LIFE

17 10 05 32

ICICI PRU LIFE 13 05 15 33

SBI LIFE 14 15 10 39

65

Interpretation:

From the above Column chart, it is clear that Bharti AXA Life Bright Star Plus has got the least

points; ICICI PRU Life SmartKid Unit Linked Regular Premium got the second highest points.

Hence SBI Life Unit Plus Child Plan is the best plan among these three life Insurer.

COMPARISON OF PENSION PLANS

66

Product Features Bharti AXA Life Dream Life Pension Plus

ICICI PRU Life

Time Super Pension

SBI Life- Unit Plus

II Pension

Option of Life Cover No Yes Yes

WOP No Yes No

ADDB Rider No Yes Yes

Critical Illness Rider No No Yes

Increase RP No No Yes

Additional RP Yes No No

Indexation Yes No No

Top-up premium Yes Yes Yes

Partial Withdrawal Yes No No

Cover continuance option

Yes Yes Yes

Premium Re-

direction

Yes No Yes

Switches Yes Yes Yes

Systematic Transfer plan

No No No

Automatic Transfer

Strategy

No Yes No

67

Change of Maturity

Date

Yes Yes No

Free Look Period Yes Yes Yes

Open Market Option Yes Yes Yes

Single Premium Yes No Yes

Total Points 11 10 11

Comparison of Charges:

The charges are compared with the help of examples:

Consider

Policy Term: 15 Years

Premium Payment Term: 15 Years

Annual Premium: 15,000/20,000/50,000

Allocation Charges

Year APE: 25,000 APE: 50,000 APE: 1,00,000

Bharti AXA Life Dream

Life

Pension

Plus

ICICI

PRU

Life

time

Super

Pension

SBI

Life-

Unit

Plus II

Pension


Life

Pen-

sion

Plus

ICICI

PRU

Life

time Su-

per Pen-

sion

SBI

Life-

Unit

Plus II

Pension


Life

Pension

Plus

ICICI

PRU

Life

time

Super

Pension

SBI

Life-

Unit

Plus II

Pension

68

1 4750 4250 3750 9500 7000 7500 19000 14000 13500

2 2250 2250 1875 4500 4500 3750 9000 9000 5000

3 2250 250 1875 4500 500 3750 9000 1000 5000

4 2250 250 1250 4500 500 2500 9000 1000 5000

5 0 250 1250 0 500 2500 0 1000 5000

6 0 250 500 0 500 1000 0 1000 2000

7 0 250 500 0 500 1000 0 1000 2000

8 0 250 500 0 500 1000 0 1000 2000

9 0 250 500 0 500 1000 0 1000 2000

10 0 250 500 0 500 1000 0 1000 2000

11 0 0 0 0 0 0 0 0 0

12 0 0 0 0 0 0 0 0 0

13 0 0 0 0 0 0 0 0 0

14 0 0 0 0 0 0 0 0 0

15 0 0 0 0 0 0 0 0 0

Total

charges

11,500 8,500 12,500 23,000 15,500 25,000 46,000 31,000 47,500

From the above table, it can infer that in every case the allocation charges are least in ICICI Pru-

69

dential Life Time Super pension and highest in SBI Life Unit Plus II Pension.

Hence rating According to Allocation charges are:

1. ICICI Prudential Life Time Super pension 15

2. Bharti AXA Life Dream Life Pension Plus 10

3. SBI Life Unit Plus II Pension 05


Year Bharti AXA Life

Dream Life Pension

Plus

ICICI PRU Life time Super Pension

SBI Life- Unit Plus

II Pension

1 612 480 765

2 643 480 781

3 675 480 796

4 709 480 812

5 744 480 829

6 782 480 845

7 821 480 862

8 862 480 879

9 905 480 897

10 950 480 915

11 998 480 933

70

12 1047 480 952

13 1100 480 971

14 1155 480 990

15 1213 480 1010

Total 13,216 7,200 13,237

From the above table, it can infer that Policy Administration charges are least in ICICI PRU Life

Time Super Pension and highest in SBI Life- Unit Plus II Pension.

Hence rating according to the Policy administration charges are:

1. ICICI PRU Life Time Super Pension 15

2. Bharti AXA Dream Life Pension Plus 10

3. SBI Life- Unit Plus II Pension 05

Total Points CollectedCompany Allocation

Charges

Policy Admin. Charges

Features Total Points

Bharti AXA LIFE 10 10 11 31

ICICI PRU LIFE 15 15 10 40

SBI LIFE 05 05 11 21

71

Interpretation :

From the above column chart, it is clear that ICICI PRU LIFE has got the maximum points &

SBI LIFE has got the minimum points. Hence ICICI PRU Life Time Super Pension is the best

retirement solution among the 3 Insurer.

72

COMPARISON OF TERM PLAN

Term plan can be compared on the basis of premium payable for level covered. Table below

shows the sample of premium payable for Policy Term of 10 years & Sum Assure of 15 lakh for

different companies:

Premium payable for PT=10 Years & SA=1500000 Lakh

Age Bharti AXA Life Secure Confident

ICICI Pru Pure

Protection

SBI Life- Shield

30 2580 2920 2988

35 3080 3771 3753

40 3960 5373 5237

73

Interpretation:

From the above data it is clear that Bharti AXA Life Secure Confident provide you the basic

cover level for your life charging the minimum cost among the 3 life Insurer.

74

CHAPTER 7.

SUMMARY OF FINDING,SUGGESTION

AND CONCULIONS

75

FINDINGS

The findings from the above study are as follows:

1. Allocation charges of Bharti AXA Life Bright Star Plus Plan are higher than SBI Life- Unit Plus

Child Plan.

2. Policy Administration Charges in Bharti AXA Life Bright Star Plus are very much higher than

other two insurers.

3. There is no option of life cover in Bharti AXA Life Dream Life Pension Plus whereas ICICI Pru

Life and SBI Life provide the option of life cover in their respective retirement plan.

76

4. Bharti AXA Dream Life Pension Plus does not have any rider, whereas ICICI Pru Life and SBI

Life provide two Riders in their respective plan.

5. Bharti AXA Dream Life Pension Plus has the option of Additional Regular Premium and

Indexation, which the other two insurers do not provide.

6. Allocation charges and Policy Administration charges in Bharti AXA Life Dream Life Pension

Plus are higher than ICICI Pru Life Time Super Pension but lower than SBI Life Unit Plus-II

Pension Plan.

7. Annual Premium in Bharti AXA Life Secure Confident is lower than the other two insurers.

8. LIC is more popular among people than any other private insurance company.

9. Bharti AXA Life Insurance is new in market therefore not much recognized in market among

people but due to brand image of Bharti it will soon capture a good market share.

RECOMMENDATIONS

Based upon the above findings, the following recommendations were made:

1. Company should reduce the charges in order to make the products more competitive.

2. Company must reduce the policy administration charges levied in Bharti AXA Life Dream

Life Pension Plus.

3. Company should provide the option of life cover & Rider in Pension Plan as done by the

other 2 Life Insurers.

77

4. The company should spend on the promotional activities like advertisement in television,

newspapers to create more awareness of the product as they have more recall value.

5. Company needs greater awareness of its product among target audience.

6. Company should use the name of Airtel to create more awareness among people.

7. Company should open more branches in rural area also so as it can target more people and

also promote its products.

CONCLUSION

After comparative analysis of the plans of these three companies, it is concluded that charges are

varying significantly between companies. Policy Administration Charges by Bharti AXA Life

Insurance and SBI Life Insurance Companies are more than charges levied by ICICI Prudential

Life Insurance Company.

78

Hence among Pension Plans, ICICI Prudential Life Time Super Pension Plan is the best plan

among these three life insurers. Whereas for Child Plan, SBI Life- Unit Plus Child Plan is the

best plan among these three companies. Bharti AXA Life Insurance Provides the cheapest term

among these three life insurers.

REFERENCES

http://www.bharti-axalife.com/products/default.asp

http://www.bharti-axalife.com/about/default.asp

http://connect.in.com/bharti-axa-life-insurance-company-ltd/profile-517249.html

http://www.irdaindia.org/

79

http://www.investopedia.com/dictionary/default.asp

http://www.bharti-axalife.com/public_disclosures.asp

80

81

sip final

Documents

ayush khandelwal reg

sagar bala sahoo

industry internship programme

icici pru life

unit price calculation

income tax act

life insurance corporation

history dating back