summer training project on BIRLA SUNLIFE

OBJECTIVE To determine and analyze the Market Potential of the Birla Sun Life Insurance Company in Lucknow City. To study the overall scenario currently prevailing in the market, namely,

the per capital income, purchasing power, occupation, literacy rate, etc. To study and determine the competitor position in the market.

To do a performance evaluation of Birla Sun Life Insurance products in comparison on with other insurance companies

DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

INTRODUCTION Life Insurance


Life insurance Life insurance (Life Assurance in British English) is a type of insurance. As in all insurance, the insured transfers a risk to the insurer. The insured pays a premium and receives a policy in exchange. The risk assumed by the insurer is the risk of death of the insured. How life insurance works There are three parties in a life insurance transaction; the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person. For example, if John Smith buys a policy on his own life, he is both the owner and the insured. But if Mary Smith, his wife, buys a policy on John's life, she is the owner and he is the insured. The owner of the policy is called the grantee (he or she will be the person who will pay for the policy). Another important person involved is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. The beneficiary is not a party to the policy, but is designated by the owner, who may change the beneficiary unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to changes in beneficiary, policy assignment, or borrowing of cash value. The policy, like all insurance policies, is a legal contract specifying the terms and conditions of the risk assumed. Special provisions apply, including a suicide clause wherein the policy becomes null if the insured commits suicide within a specified time for the policy date (usually two years). Any misrepresentation by the owner or insured on the application is also grounds for nullification. Most contracts have a contestability period, also usually a two-year period; if the insured dies within this period, theDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

insurer has a legal right to contest the claim and request additional information before deciding to pay or deny the claim. The face amount of the policy is normally the amount paid when the policy matures, although policies can provide for greater or lesser amounts. The policy matures when the insured dies or reaches a specified age. The most common reason to buy a life insurance policy is to protect the financial interests of the owner of the policy in the event of the insured's demise. The insurance proceeds would pay for funeral and other death costs or be invested to provide income replacing the deceased's wages. Other reasons include estate planning and retirement. The owner (if not the insured) must have an insurable interest in the insured, i.e. a legitimate reason for insuring another persons life. The insurer (the life insurance company) calculates the policy prices with an intent to recover claims to be paid and administrative costs, and to make a profit. The cost of insurance is determined using mortality tables calculated by actuaries. Actuaries are professionals who use actuarial science which is based in mathematics (primarily probability and statistics). Mortality tables are statistically based tables showing average life expectancies. The three main variables in a mortality table are age, gender, and use of tobacco. The mortality tables provide a baseline for the cost of insurance. In practice, these mortality tables are used in conjunction with the health and family history of the individual applying for a policy in order to determine premiums and insurability. The current mortality table being used by life insurance companies in the United States and their regulators was calculated during the 1980s. There is currently a measure being pushed to update the mortality tables by 2008. The current mortality table assumes that roughly 2 in 1,000 people aged 25 will die during the term of coverage. This number rises roughly quadratic ally to about 25 in 1,000 people for those aged 65. So in a group of oneDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

thousand 25 year old males with a $100,000 policy, a life insurance company would have to, at the minimum, collect $200 a year from each of the thousand people to cover the expected claims. The insurance company receives the premiums from the policy owner and invests them to create a pool of money from which to pay claims, and finance the insurance company's operations. Contrary to popular belief, the majority of the money that insurance companies make comes directly from premiums paid, as money gained through investment of premiums will never, in even the most ideal market conditions, vest enough money per year to pay out claims. Rates charged for life insurance increase with the insured's age because, statistically, a people are more likely to die as they get older. Since adverse selection can have a negative impact on the financial results of the insurer, the insurer investigates each proposed insured (unless the policy is below a company-established minimum amount) beginning with the application, which becomes part of the policy. Group Insurance policies are an exception. This investigation and resulting evaluation of the risk is called underwriting. Health and lifestyle questions are asked, and the answers are dutifully recorded. Certain responses by the insured will be given further investigation. Life insurance companies in the United States support The Medical Information Bureau, which is a clearinghouse of medical information on all persons who have ever applied for life insurance. As part of the application, the insurer receives permission to obtain information from the proposed insured's physicians. Life insurance companies are never required by law to underwrite or to provide coverage on anyone. They alone determine insurability, and some people, for their own health or lifestyle reasons, are uninsurable. The policy can be declined (turned down) or rated. Rating means increasing the premiums to provide for additional risks relative to that particular insured.DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

Many companies use four general health categories for those evaluated for a life insurance policy. These categories are Preferred Best, Preferred, Standard, and Tobacco. Preferred Best means that the proposed insured has no adverse medical history, is not under medication for any condition, and his family (immediate and extended) have no history of early cancer, diabetes, or other conditions. Preferred is like Preferred Best, but it allows that the proposed insured is currently under medication for the condition and may have some family history. Most people are in the Standard category. Profession, travel, and lifestyle also factor into not only which category the proposed insured falls, but also whether the proposed insured will be denied a policy. For example, a person who would otherwise be in the Preferred Best category will be denied a policy if he or she travels to a high risk country. Upon the death of the insured, the insurer will require acceptable proof of death before paying the claim. The normal minimum proof is a death certificate and the insurer's claim form completed, signed, and often notarized. If the insured's death was suspicious and the policy amount warrants it, the insurer may investigate the circumstances surrounding the death, before deciding whether there is a legal obligation to pay the claim. Proceeds from the policy may be paid in a lump sum or as an annuity paid over time in regular recurring payments for either for the life of a specified person or a specified time period.


COMPANY PROFILE


Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group and Sun Life Financial Inc., a leading international financial services organisation. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc., offers a formidable value proposition to customers. Sun Life Financial and its partners today have operations in key markets worldwide, including India, Canada, the United States, the United Kingdom, Hong Kong, Philippines, Japan, Indonesia, China and Bermuda. Sun Life Financial Inc. had assets under management of over US$ 386.82 billion, as on 31 March 2007. Sun Life Financial Inc. is a leading performer in the life insurance market in Canada. BSLI in its five successful years of operations has contributed significantly to the growth and development of the life insurance industry in India. It pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. It was the first player in the industry to sell its policies through the Bank assurance route and through the internet. It was also the first private sector player to introduce a pure term plan in the Indian market. This was supported by sales practices, which brought a degree of transparency that was entirely new to the market. The process of getting sales illustrations signed by customers, offering a free look period on all policies, which are now industry standards were introduced by BSLI. Being a customer centric company, BSLI has invested heavily in technology to build world class processing capabilities. BSLI has covered more than one and a half million lives since inception and its customer base is spread across 100 cities in India. All this has assisted the company in cementing its place amongst the leaders in the industry in terms of new business premiumDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

income. Birla Sun Life Insurance (BSLI), one of the leading private life insurers in India today announced the inimitable achiever, cricketer Kapil Dev as their corporate brand ambassador. The cricketing supremo will be endorsing BSLI in all its marketing initiatives. Birla Sun Life Insurance is a value-driven brand which has a national brand recall of 70 per cent. The objective of appointing a brand ambassador is to grow its brand recall as it goes national in its distribution reach and fuel business growth. As a brand ambassador, Kapil Dev will play a key role in the brand and product marketing and promotional activities. BSLI has always used an integrated marketing approach, which will be strengthened further. Commenting on the association with Kapil Dev, Mr. S. K. Mitra, Director, Financial Services, Aditya Birla Group and currently incharge of BSLI expressed, "The Birla Sun Life Insurance business distribution network is national in nature covering more than 1000 points across the country .We have made our entry in several tier I and tier II towns. It is therefore very important for the brand to connect at the grassroot level and create trust. We believe that our association with Kapil Dev as our brand ambassador will help us create this connect in a shorter period of time. We therefore now have two strong connects our parent brand Birla and our brand ambassador Kapil Dev". Kapil Dev, also known as the Haryana Hurricane, was born on 6 January 1959 in Chandigarh. He played his first competitive game of cricket at the age of 13 years and made his test debut on 16 October 1978 at Faisalabad against Pakistan. Kapil Dev remained India's top strike bowler for almost 15 years. His extraordinary test match figures of more than 5000 runs and 434 wickets along with 64 catches show that he was a world class cricketer and an all-rounder. He has raised the mantle of India to sporting glory by winning us the World Cup.DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

In a study conducted by BSLI, Kapil Dev connected extremely well with the life insurance category and had high acceptance by the masses. Our survey suggests that he is seen as a very good fit for the BSLI brand. He is very much loved and respected by a vast majority of the population. On 26 November 2006, Birla Sun Life was host the annual golf tournament at the Chembur Golf Club in Mumbai where Kapil Dev was participate. About Birla Sun Life Insurance Birla Sun Life Insurance Company Limited is a joint venture between the Aditya Birla Group, one of the largest business houses in India and Sun Life Financial Inc., a leading international financial services organisation. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc., offers a formidable protection for your future. Birla Sun Life Insurance (BSLI), in its five successful years of operations, has contributed significantly to the growth and development of the life insurance industry in India. It pioneered the launch of unit linked life insurance plans amongst the private players in India. It was the first player in the industry to sell its policies through the banc assurance route and through the internet. It was the first private sector player to introduce a pure term plan in the Indian market. This was supported by sales practices which brought a degree of transparency that was entirely new to the market. The process of getting sales illustrations signed by customers and offering a free look period on all policies, which are now industry standards, were introduced by BSLI. Being a customer-centric company, BSLI has invested heavily in technology to build world class processing capabilities. BSLI has covered more than a million lives since inception and its customer base is spread across more than 1000 towns and cities in India. All this has assistedDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

the company in cementing its place amongst the leaders in the industry in terms of new business premium income. The company's current capital base is Rs.520 crore. About the Aditya Birla Group The Aditya Birla Group has a turnover close to Rs.38,000 crore (as on 31 March 2008) and is one of the largest business houses in India. It enjoys a leadership position in all the sectors in which it operates. With over 75 business units spanning the South East Asian belt, Africa, Canada and the UK among others, it is reckoned as India's first multinational corporation. The group is anchored by 72,000 employees and has seven lakh shareholders, with a market capitalization of Rs.53,400 crore.

About Sun Life Financial Inc. Sun Life Financial Inc. is a leading international financial services organisation providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of 31 March 2008, the Sun Life Financial group of companies had total assets under management of US$ 343 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol "SLF".


VISION


VISION

To be a world class provider of financial security to individuals and corporates and to be amongst the top three private sector life insurance companies in India


MISSION


MISSIONTo be the first preference of our customers by providing innovative, need based life insurance and retirement solutions to individuals as well as corporates. These solutions will be made available by well-trained professionals through a multi channel distribution network and superior technology. Our endeavour 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



SWOT ANALYSISSTRENGTH : Multi-channel distribution and one of the largest

distribution networks in India. Implementing Six-Sigma process. Customer centric products and services.

Superior investment and risk management framework 1 Million Policies sold within 3 and half years. Company has maximum number of MDRT as well as

good number of HNI advisors. Training process of the company is very strong. Different plan for different peoples According to the change in surrounding environment like changes in customer requirement.


WEAKNESS: COMPANY does not penetrate on the rural market at a time. There is no plan for the low income group. Fees for the advisor is high than the other company. OPPORTUNITY: Insurance market is very big, where company can expand its horizon in insurance industry. Though good investment and insurance it is easy to top Indian customers. The huge insurance market (77%) is left so company has opportunity to expand our products. To associate with the more number of HNI.

THREATS:

OLD HABITS DIE HARD: Its still difficult task to win the confidence of public towards private company.

The company is facing major threats from LIC -which is an

only government company. Plans for all income groups is not available which can create adverse effect later on the market share of the company.


KEY PEOPLES OF ORGANISATION


BOARD OF DIRECTORSMr. Kumar M Birla Mr. Donald A Stewart, Mr. Bishwanath N Puranmalka Mr. Ajay Srinivasan Mr. Gary M Comerford Mr. Suresh N Talwar Mr. Gian P Gupta His Highness Maharaja G Singh Mr. Stephan Rajotte Dr. Bharat K Singh

INVESTMENT COMMITTEE Mr. B. N. Puranmalka Mr. Eugene Lundrigan Mr. Ajay Srinivasan Mr. Vikram Mehmi Mr. Mayank Bathwal Mr. Fabien Jeudy Mr. Vikram Kotak Ms. Keerti Gupta


Management Team Mr. Vikram Mehmi President & Chief Executive Officer Mr. Mario Braganza Chief Operating Officer Mr. Mayank Bathwal Chief Financial Officer

Mr. E.N. Goveia Head - Direct Sales Force Mr. Bhavesh Sanghvi Head - Group Life & Pensions Ms. Anjana Grewal Senior Vice President Marketing & Communications Mr. K.H. Venkatachalam Vice President - Human Resource Mr. Lalit Vermani Vice President Compliance Mr. Vikram Kotak Vice President Investments

Mr. Amit Punchhi Senior Vice President Third Party Distribution Mr. Snehal Shah Senior Vice President Operations

Mr. Rajesh Bhojani Senior Vice President DSF Expansion

Mr. Fabien Jeudy Vice President, Chief & Appointed Actuary Mr. Melvyn D'souza Vice President - Risk Management and Internal Audit Mr. Bhalachandra Nayak Vice President - Strategy


DETAILS OF PRODUCTS


Individual Life


ProtectionBirla Sun Life Term Plan Premium Back Term Plan

SavingBirla Sun Life Insurance Gold-Plus Supreme Life Dream Plan Classic Life Premier Simply Life Prime Life Premier Prime Life Life Companion Flexi Cash Flow Flexi Save Plus Flexi Life Line Single Premium Bond

RetirementFlexi Secure Life Retirement Plan II


Children


PRODUCTSInsurance Plans Life is unpredictable. But in face of adversity, our responsibilities towards our parents, children and loved ones need not be compromised. Insurance planning equips you to smooth out the uncertainties and adversities that life might send your way, so that the best that life has to offer, secure in the knowledge that your beloved ones are well provided for. BSLI offers a complete range of insurance products 1. Protection Plans 2. Savings Plans 3. Child Plans 4. Investment Plans 5. Retirement Plans 6. Group Plans 7. Rural Plans 8. Plans for NRIs 9. Keyman Plans 10. Riders


Protection Plans

BSLI offers LifeGuard - a set of pure protection plans. Choose from amongst three different product structures to insure your life and provide total security to your family, at a very affordable cost. Level Term Assurance with return of premium On death the entire sum assured will be paid. On maturity, all the premiums paid will be returned. Level Term Assurance without return of premium On death the entire sum assured will be paid. No survival or maturity benefits. You can also enhance the above two policies by adding Accident & Disability Benefit Rider and Waiver of Premium Rider (WOP) . Level Term Assurance - Single premium: On death the entire sum assured will be paid. No survival or maturity benefits


Savings Plans

BSLI offers a variety of policies that give you the benefits of protection and the opportunity to save for important assets or events, like a home, a car or a wedding.

A regular premium unit-linked insurance plan with an assurance of Capital Guarantee# with the added advantage of flexible liquidity option. An ideal plan for long term planning with the benefit of liquidity. The key features of the plan are: Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of the annual premium. You can also choose the term of the plan. At the end of the term, the higher of the value of units or the guaranteed value* is paid. On death, Sum Assured along with the higher of value of units or the guaranteed value is payable. Facility to make withdrawals from the 6th policy year onwards till the end of the policy term. Every year withdraw up to 10% of the value of units. Additional credits payable as a percentage of the initial annual premium are paid along with the death or maturity benefit. Additional insurance for 10 years after the maturity, for an amount of 50% of the Sum Assured.DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

Flexibility to make additional investment with the help of the top-up facility. Flexibility to increase / decrease your annual premium amount Facility of Automatic Premium Payment- With this facility you can take a temporary break from premium payment. ** Total transparency with the premium allocations, and other charges declared upfront. The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all charges) along with the declared bonus interests. ** With Automatic Premium Payment facility, you can avail a temporary break from premium payment for a maximum of 1 year. This facility is available once if the premium paying term is less than 15 years and twice, if it is 15 years or more. You can also enhance your policy by adding Accident & Disability Benefit Rider , Waiver of Premium Rider and Critical Illness Rider .

A regular premium unit-linked insurance plan with an assurance of Capital Guarantee# An ideal plan for your long-term savings and protection requirement.


The key features of the plan are: Flexibility to choose a specific level of protection (Sum

Assured), based on a multiple of the annual premium. You can also choose the term of the plan. At the end of the term, the higher of the value of units or the guaranteed value* is paid. On death, Sum Assured along with the higher of value of units or the guaranteed value is payable Additional credits payable as a percentage of the initial annual premium are paid along with the death or maturity benefit. Additional insurance for 10 years after the maturity, for an amount of 50% of the Sum Assured. Flexibility to make additional investment with the help of the

top-up facility. Flexibility

to increase / decrease your annual premium

amount Facility of Automatic Premium Payment- With this facility

you can take a temporary break from premium payment. Total transparency with the premium allocations, and other charges declared upfront. The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all charges) along with the declared bonus interests. With Automatic Premium Payment facility, you can avail a temporary break from premium payment for a maximum of 1 year. This facility is available once if the premium paying term is less than 15 years and twice, if it is 15 years or more.DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

The capital guarantee is applicable only on the invested premium and the declared bonus interests. You can also enhance your policy by adding Accident & Disability Benefit Rider, Waiver of Premium Rider and Critical Illness Rider.

A unit-linked insurance plan with an assurance of Capital Guarantee which offers you the benefit of a limited premium payment term. An ideal plan for protection with wealth creation that offers the flexibility of a limited premium paying term. Flexibility to choose a premium payment term of 5, 7 or 10 years for a maturity term of 10, 15 or 20 years respectively. Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of the annual premium. At the end of the term (maturity), the higher of the value of

units or the guaranteed value* is paid. On death, Sum Assured along with the higher of value of units or the guaranteed value is payable. Additional credits payable as a percentage of the initial annual premium are paid along with the death or maturity benefit. Facility

to make withdrawals from the 6th policy year

onwards till the end of the policy term. Every year withdraw up to 10% of the value of units Flexibility to make additional investment with the help of the top-up facility.DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

Flexibility to increase / decrease your annual premium amount Total transparency with the premium allocations, and other charges declared upfront. The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all charges) along with the declared bonus interests. The capital guarantee is applicable only on the invested premium and the declared bonus interests. You can also enhance your policy by adding Accident & Disability Benefit Rider and Critical Illness Rider.

Presenting Premier Life The Preferred plan for the Preferred Customer. The key features of the plan are: Limited premium payment option: Choose from among a 3, 5, 7 or 10 year premium paying term. Choice of sum assured: Choose a sum assured, which is a minimum multiple of 1 and a maximum multiple of 25 times the annual contribution. Additional allocation of units on a periodic basis. Facility to top-up your investment any time you have surplus funds. Choose from among four funds, based on your investment objective and risk appetite.


Choice

to

switch

between

investments

options

(4

free

switches every policy year). Flexibility to decrease your sum assured. Add-on riders to protect you against any eventuality. Loans against the policy. You can also enhance your policy by adding Critical Illness Rider, Accident & Disability Benefit Rider.

Presenting Life Time unit linked plans that meets your changing needs over a lifetime. These solutions have been developed to meet your savings, protection and investment needs at every stage in life.

Protection Choose a specified level of protection (available only with LifeTime). Two levels of Sum Assured to choose from (available only with LifeTime II). Flexibility to increase or decrease your sum assured.

Add-on riders to protect you against any eventuality.


Savings Flexibility to increase or decrease your contribution. Facility of Premium Holiday, wherein the policy continues

even if there is a temporary break in the payment of annual contribution (available only with Life Time). Facility of Automatic Cover Continuance, wherein the policy continues even if there is a temporary break in the payment of annual contribution Facility to top-up your investment any time you have surplus funds. Additional allocation of units on a periodic basis. Loans against the policy. Investment: Choose from among four funds, based on your investment objective and risk appetite. Choice to switch between investments options (4 free switches every policy year). You can also enhance your policy by adding Critical Illness Rider, Major Surgical Assistance Rider, Accident & Disability Benefit Rider, Accident Benefit Rider (available only with Life Time) and Waiver of Premium Rider


.

An insurance plan that gives added protection, savings and multiple options, all in one! The flexibility to choose your premium contribution. The flexibility to choose amongst three levels of cover (in the form of sum assured) for the same amount of total annual contribution. The flexibility of shifting between the three levels of cover, as you require. The flexibility of receiving your maturity proceeds as a lump

sum or in equal annual installments over 3 or 5 years. You can also enhance your policy by adding Variety of Riders

An insurance plan that gives you added protection, savings, multiple options, plus the power of liquidity. The flexibility to choose your premium contribution. The flexibility to choose amongst three levels of cover (in the form of sum assured) for the same amount of total annual contribution. The flexibility of shifting between the three levels of cover, as you require.


The flexibility of receiving your maturity proceeds as a lump sum or in equal annual installments over 3 or 5 years. The flexibility of withdrawing up to 10% of the accumulated value of your policy, after the first 5 policy years. You can also enhance your policy by adding Variety of Riders

An ideal plan for those who want to accumulate funds on a regular basis while enjoying insurance protection. Guaranteed Benefits: Guaranteed additions @ 3.5% of the

Sum Assured, compounded annually for the first 4 years of the policy. Extended Life Cover: An extended cover for 5 years after the

maturity of the policy, for 50% of the sum assured, at no extra cost. Maturity Benefit: At the end of the term, the policyholder

receives the full sum assured, the guaranteed additions and the vested bonuses. Death Benefit: The beneficiary receives the sum assured, the

guaranteed additions and the vested bonuses incase the life assured were to meet with an unfortunate event. In case the life assured is aged 7 years or less, the basic premium paid will be returned.


You can also enhance your policy by adding Critical Illness Rider , Major Surgical Assistance Rider , Accident & Disability Benefit Rider , Waiver of Premium Rider (WOP)

Child Plans

As a responsible parent, you will always strive to ensure a hassle-free, successful life for your child. However, life is full of Uncertainties and even the best-laid plans can go wrong. Heres how you can give your child a 100% safe and assured tomorrow, whatever the uncertainties. Smart Kid is especially designed to provide flexibility and safeguard your childs future education and lifestyle, taking all possibilities into account. Choose from amongst a basket of 4 plans: Smart Kid regular premium Smart Kid unit-linked regular premium Smart Kid unit-linked regular premium II Smart Kid unit-linked single premium II


All these plans offer you: Financial Benefits: Regular payments at critical stages in

your childs life, like Board examinations, Graduation and Post-graduation. Total peace of mind, even if you are not around Sum Assured is paid immediately: Ensures that your

loved ones stay financially secure, even in your absence. All future premiums are waived: Ensuring that your

family is not financially burdened in your absence. Policy benefits continue: The educational benefits of the

policy continue, ensuring that your child can realize his or her dreams without any hassles. Development Allowance: Smart Kid guarantees regular

income to secure your childs educational career and also ensures his or her all-round development, for a nominal additional amount. The Income Benefit Rider takes care of this through an annual payment of 10% of the sum assured, to your child, till the maturity of the policy, in the unfortunate event of the death of the parent. All SmartKid plans can be enhanced with the Accident & Disability Benefit Rider and Income Benefit Rider . You can also an Accident Benefit Rider to a SmartKid Regular Premium policy, and a Waiver of Premium Rider (WOP) to SmartKid unit-linked regular premium policy.


Investment Plans

Life Link II is a unique plan that combines the security of a life insurance policy with the opportunity of enjoying high returns on your investments, without the market risks compromising on the protection of your family! Death Benefit: The Sum Assured under the product has 2 options, either 500% of the initial premium or 105% of the initial premium. In the event of an unfortunate death, the beneficiary will receive higher of the value of units or the initial death benefit, less any withdrawals. Withdrawal Benefit: One can make partial withdrawals from the accumulated value of the policy after completion of one policy year. Flexibility: Choose from four fund options, based on your investment objective and risk appetite. If at a later stage your financial priorities change, you can switch between the various fund options, absolutely free, 4 times a year.


Retirement Plans

Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier generations. For you, this increase will mean a longer retirement life, stretching into a couple of decades. BSLI Retirement Solutions that combine the best of insurance and investment. These solutions are developed to ensure your peace of mind for the years to come.1. Why plan for retirement? 2. How much should I set aside for retirement? 3. The impact of inflation on your retirement savings 4. Why plan early? 5. About Annuities

Why plan for retirement? For too many people, the joy of retirement after years of hard work is eclipsed by the financial uncertainties that it brings. Despite all the planning and saving, you can never sure whether your money will last a lifetime. Retirement planning offers a way to ensure a more enjoyable, stress free tomorrow. A prudent plan will ensure that increasing life expectancy, higher inflation and increasing taxes do not eat away into your hard earned savings.DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

How much must I set aside for retirement? To ensure a comfortable retired life, you would be wise to invest money into additional avenues like pension plans. How much you need to invest can be answered by answering some questions such as: 1. How long do you have to save that amount before retirement? 2. Where can you invest your retirement money? 3. How much risk are you willing to take on your investments?


Group Solutions

In an era of competitive parity, the only asset that makes a decisive difference between corporate success and failure is the quality of human capital. Employee benefits have proven to be an excellent tool to optimize the retention of talent and improve an organizations bottom-line. The quality of an organizations employee benefits establishes and maintains a company's image as a caring employer. Optimum care of employees is a long-term investment that results in a sustained competitive advantage for an organization in the times to come. BSLI Group Solutions Advantage: An integrated basket of employee benefits solutions that offer incomparable flexible benefits. Sound investment management that focuses on safety, stability and profitability of the portfolio. Personalized financial planning for your employee that takes care of his/her changing financial needs at every stage of life. Quality service initiatives and transparency across all operations, promising superlative operational efficiency.


Group Term Assurance : Helps provide affordable cover to members of a group. Group Gratuity Plan : Helps employers fund their statutory gratuity obligation in a flexible and hassle-free manner. Group Superannuation Plan : A flexible scheme (defined benefit and defined contribution) to provide a retirement kitty for each member of the group. Group Term Assurance: BSLI flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary, and can be extended to all employees between the ages of 18 and 65 years. The benefit under the policy is paid on the event of the member s death to the beneficiary nominated by the member. It is a one-year renewable policy where one master policy covers all proposed employees comprising the group, with a minimum group size of 25 persons. New members can join the group and outgoing members can leave the group at any point during the policy term.


Highlights include: Greater

convenience for the employees with relaxed Cover Limits" with simplified underwriting

underwriting and medical requirements. "Free

depending upon the number of employees in the group and the level of cover chosen. Guaranteed benefit: On death during the term of the

contract (while in service), the sum assured will be paid to the beneficiary of the employee. Choice of additional coverage in form an Accident and Disability Benefit Rider and Critical Illness Cover Premium is viewed as a business expense in the year of payment. Group Gratuity Plan: BSLI group gratuity plan helps employers fund their gratuity obligation in a scientific manner. Employers can avail of the tax benefits as applicable to approved gratuity funds. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. Highlights include: Wider choice of investments with Market Linked Plans -

to meet the diverse financial goals. We offer 4 investment options (short-term debt, debt and balanced and capital


guarantee

plan)

where

investments

will

be

made

in

accordance with the fund objectives. Transparency through Daily disclosure of Unit Value and

regular disclosure of the portfolio of each of the investment option Flexibility through switching and contribution redirection

option to enable reshuffling of portfolio Bundled Life Cover greater value to the employee by

packaging life insurance cover with the gratuity, with minimal amount of underwriting. Actuarial services to provide a scientific estimation of the

gratuity liability. Low explicit charge structure with the conditions for exit

specified upfront. Enhanced service levels through faster claim settlement,

easier access to information and regular statements. Complete end to end solution in the legal and regulatory

approval process for scheme set up or transfer Employee Benefits: The contribution made by the employer is not included in the value of taxable perquisites in the hands of the employee. Gratuity received up to Rs 350000 is exempt from Income tax under Sec 10(10) Employer Benefits:


Annual contribution up to 8.33% of salary bill in a financial year is allowed a deduction for the purpose of computation of profits and gains of business. Contribution towards past service liability is allowed as deduction as per the Income Tax rules. Group Superannuation Plan: BSLI Superannuation Scheme (for both Defined Benefit and Defined Contribution funds) offers substantial benefits to both employers and employees. The employer and employee can avail of tax benefits applicable to an approved superannuation trust. The scheme will provide for a retirement fund for each participating employee. An employee would be able to choose from various annuity options or opt for partial commutation of corpus at retirement. Highlights include: Wider choice of investments with Market Linked Plans - to

meet the diverse financial goals. We offer 5 investment options (short-term debt, debt, balanced, growth and capital guarantee plan) where investments will be made in accordance with the fund objectives. Control - Each member/employer can exercise greater control

over investments by choosing one or more of the investment options. Multiple Annuity Options - 5 annuity options and open

market option


Transparency - Transparency through Daily disclosure of

Unit Value and regular disclosure of the portfolio of each of the investment option Flexibility - Flexibility through switching and contribution

redirection option to enable reshuffling of portfolio Low

explicit charge structure with conditions for exit

specified upfront. Enhanced service levels through faster claim settlement,

easier access to information and regular statements. Complete end to end solution in the legal and regulatory

approval process for scheme set up or transferRural Plans

BSLI Rural Products are designed to meet the needs of the rural consumers. These products offer the following features: 1. Low and Affordable Premiums 2. Life Cover 3. Savings Option 4. Hassle free procedure BSLI offers 2 specially designed rural plans.a) b)

BSLI Endowment Plan BSLI - Regular Premium

BSLI Endowment Plan: BSLI offers the following features:DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

Life Cover and Savings Regular Premiums Age at entry Premium Mode Term Sum Assured Premium / Year

18 - 45 Yrs Half Yearly / Yearly 5,10,15 Yrs Rs.5,000 -20,000 Rs. 507 - 553 ( SA: Rs.10,000) Sum Assured

Maturity/Death benefit BSLI - Regular Premium:

BSLI is a regular premium policy with the following features: Individual policy Only Life cover Term - 3 & 5 Yrs Age independent premium Age at entry Sum Assured Premium / Year Maturity/Death benefit Death Benefit 18 - 45 Yrs Single Rs 50 200 Rs.5,000 - 20,000 Sum Assured


Plans for NRIs

NRI Plans: Being away from India doesn't mean you have to compromise the safety and security of your loved ones. In fact, your savings from your time overseas can be easily canalized to meet your family's needs - now and in the future. So, whether its your dream to retire in your hometown; to secure funds for your children's education; or to build assets, BSLI has a range of solutions that can be customized to meet your needs.


IRDA(INDIAN REGULATORY DEVLOPMENT AUTHORITY)


IRDA:The insurance sector has been opened up in India, as there was an urgent need. The international experience indicates those country with a liberalized insurance sector have witnessed a rapid growth in premium volumes enhancing the domestic saving rate. This happened in China, Malaysia and Singapore where a competitive market has led to improvement in Services and quicker settlement of claims. It is also important to note that competition will bring about advancement in information, communication and technology. And rightly therefore a decision was taken by the Government of India to open up Insurance sector. The establishment of IRDA in the month of April 2000 has been important development in this direction, making the end of monopoly in the insurance sector. WHY INSURANCE IN INDIA: Only 22% of the insurance population has been extended cover. Market penetration is low and the potential to exploit is high. Insurance premium per capita is very low. Lack of comprehensive social system benefit and welfare means that demand for pension products is high. Huge middle class of approximately 300 Million. Existing insurance company score low on customer service front. The insurance market registered growth in the Asian region even though Indias share in global insurance is less than 0.5% (1988) as compared to USA (24.2%) and Japan (21%). Studies have reveled that in an emergingDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

market, as disposable income rises, Insurance premiums as a ratio of GDP shoots up. The confederation of Indian Industry projected a growth of Life Insurance premiums from Rs. 350 Billion at present to Rs.140 Billion. The growth of non-life insurance premium is expected to increase from 75 billion to 375 billion. Out of which, only 10% is tapped by the existing insurer. Insurance even more than banking is a volume game. A very exclusive approach in view is unlikely to provide meaningful numbers. Currently, insurance is bought for the purpose of tax-benefits. A higher percentage of business is in the rural market. The share of rural new business insurance total new business is 55% in terms of policies and 47% in terms of sum assured. However, this needs to be viewed in the light of some recent issues that have been raised regarding as to what constitutes the rural market. Therefore, private insurers will be best served by middle market approach, targeting the customer segments that are presently unexploited. How many Indians are aware that LIC has more than 60Products and GIC has more than 180Products? Not only there is a reduction in the premiums of Life Insurance products have long overdue since Indian morality rate has decreased three folds in the last 50years. There is also scope to increase the yield on life insurance policies (presently 6%) with proper risk management in place. It is been debated that insurance business does not produce profit in the first five years cross subsidization is a feature of Indian market. Even the first portfolio vote that is considered profitable, cross subsidizes other departments. Tariffs reduction is likely to reduce profits; further insurers have to institute proper claims management progress in order to extractDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

efficiencies. At present life insurance business in the country is taxed at 12.5% of the profit in financial year. The government is soon to present a new model of taxing life insurance companies at international rates. New entrants should be well advised to look ahead to the stage where brand strength will be a competitive advantage and sketch their alliances accordingly. In fact, we believe that alliance related to distribution rather than to produce or technology will prove most valuable in the long run. Banks and financial companies will emerge, as attractive distribution channel for this insurance trend will be led by two factors, which already apply in other world market. First Banking food insurance, fund management and other financial services companies are being to increase their profitability and provide maximum value to their customers. Therefore, they are themselves looking for a range of products to distribute. In other market notably Europe; this has resulted in bank assurance. Bank entering into the insurance business in India to bank hope to maximize expensive existing network by selling a range of products more of a loss alliance between insurance and bank than a formal ownership. Some Indian entrants like ICICI, HDFC and Reliance hope to ride their existing network and customer bases.


CHANNEL DEVELOPMENT WHY TO RECRUIT WHO TO RECRUIT HOW TO RECRUIT RECRUITMENT ACTIVITIES WHAT TO CHECK WHILE WE ARE RECRUITING ROLE OF ADVISOR WORKING ENVIRONMENT DO YOU POSSESS SUPPORT PACKAGE FOR SCUCCESSFUL ADVISOR EXTENSIVE TRAINING FOR SUCCESSFUL ADVISOR EXTENSIVE INVESTMENT IN ADVISOR TRAINING PAYMENT & BENEFIT COMMISSION STRUCTURE RECOGNITION PROGRAMS CAREER PROGRESSION & FUTURE OPPORTUNITIES


WHY TO RECRUIT There are two aspects of employment in the insurance sector today. One is Permanent Employment, for sales, operation, IT support, back office services and So on. We are also offering the other kind of employment for people to sell Life Insurance they are called Life Advisors. Or Financial Advisors. This is a

big area of employment.

Because we are supposed to!!

That the way to do this business.

More recruits, more active advisors, more BDA WHO TO RECRUIT Quality Deptt. has given some indicators in terms of what are the common traits(Q-SCORE) of our successful advisorsThe commonalities were

Age Education Family Income

: between 30 -45 : graduate : above Rs. 2 lacs p.a.

The important fact to remember is that 61% of our RED category advisors do not fall into any of this category.

This is a broad pointer for us to remember what are the his/her profile Some other pointer from Quality


Most of the RED category advisors FAILED in the DISC profile which means that DISC is good indicator of chanced of success or failure Successful advisors usually have 2 years of work exp. In their current profession Small time businessmen / entrepreneurs v. successful profile Women/Housewives are very successful- however they have not been sustainable over long periods. They usually have become inactive after 6 7 months of joining. But till the time they are working, their average WAPI & Productivity is very high compared to others. People who are new to the city are least probable to do well.

Who to recruit? High probability of Success Tax/ Financial Consultants, CAS Bond / Mutual Fund Agents LIC Agents Surrogates Small business owners


Average Profile Women Students VRS / retired Personnel Avoidable Profiles New to the City Income Profile Approx Rs.1 Lac P.A. People who do not own their transport THE MOST SUCCESSFUL PROFILE THE PERSON

WHO HAS BEEN MANAGED WELL BY YOU. How to Recruit? Things which you should have while meeting the prospect. BOP Presenter. Reward points booklet OR take a copy of the catalog from the website show the gifts, a prospect wouldnt understand points, but will value the gifts. Advisor Manual - can show how the manual can answer many procedural issues. Talk about email id & tech support the prospect would like to know what all ill the company give My Market show 100 show the booklet and stress its importance. Copy of any certificate MDRT certificates, Sales Champion certificate etc to show recognition.DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

Insist on doing the BOP presentation it gives a complete picture of what you have to present & answers a lot of questions. Stress on different things to different profiles change

your proposition as per the customer. Women Rewards, - gift items, household goods, gold

Young marketing background career Pinnacle. Tax/ MF/ LIC Agents Rewards & Recognition, Star Clubs. CAs foreign trips, preferential treatment in all aspects, dont talk about commissions, stress on the extras. Small businessman / Entrepreneurs show ROE Return

on Energy , to the earn the same amount of money from your business, you would be spending much more time & energy a lot of capital from your pocket. THE POWER RENEWAL COMMISSIONS: Always, always, always stress on the fact that renewal commissions ARE THE differentiator from every other sort of business Spend lot of time on the Commissions structure given in

the BOP Try to do an example in front of them trying to portray the commissions payable for the same amount of business done every year THE EARNING CALCULATOR WILL BE OF THE HELP HERE


Recruitment Activities Each of us should have a mix of Mass Media Activities - Spray & Pray

Lead Generation activities Database calling, cold calling,

Ads, Classified, paper Inserts, tele-calling, Pamphlets, Banners Over the last has one year, gone

mailers,

mass

BOPs, fish bowl activity, Yellow Pages, Trade Directories etc. the We need to develop lead

response from this basket of generation activities more so as activities down to have more people to touch drastically, thus forcing us to be upon and tell about this career creative to create other avenues opportunity Activities which have done well with us in the recent past: Joggers Park Summer Trainees Mass BOPs Database Calling Lead Generation Activities Tele Calling set ups Some more ways on how to recruit: Database Attack can be done through a trainee. Cold Calling helps a lot as the respondent does not waste your time by dilly dallying.


RWA lead.

Activities

Tambola

or

children

painting

competition- gives real time leads, cost effective per Look at level MBA colleges for Pinnacle probable. Source local databases Cable TV Service providers, home delivery caterers. Fish Bowl Activity- in high football places. Things to check while recruiting: ENERGY, ENERGY always check the persons energy levels, as this career is all about meeting new people, finding new prospects and more so handling rejections His past/ present occupation gives tremendous insight into his energy levels Show him the path in his current environment how insurance selling can fit in lowers the resistance of time availability Check his environment his family locality Check whether he can work on his own Find out if he is looking for money or career as he can have both here

Things to check while recruiting: Always try to meet the person at his residence- check for the locality, his household, standard of living, try to involve theDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

spouse in the presentation so that they know what they are getting into Always check on need for money & a drive to do well in life if he has been doing well in life, he will make efforts to do well with us Ask questions about his past, find instances of accomplishments Keep checking on the pointers & do a mental check list of the acceptable points Be convinced about the profile and then only go ahead Advisor Role To provide ongoing financial advice for his/her Identify future client Making appointments Conduct financial review meetings with prospects / clients Close sale Get referrals Provide service to clients Follows internal sales & reporting systems: client:

Working environment: To be part of a world class sales team. Work from your own office or residence.DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

Work full time or part time. Earn commission, bonus $ incentives. No upper limits in earnings. Flexible career. Your opportunity: No startup capital required. Flexible working environment. Be your own boss. Unlimited earning potential. To be part of world - class team. Extensive training to make you a professional advisor: State-of-the-art training on : Selling skills. Product knowledge. Relationship skills.

Training delivery through several convenient options : Face to- face. Online. Self learning.

Some of our high performers get.DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

Number of policies sold Average Premium Rs. Total primium earned Rs.

YEAR 1 50 16000

YEAR 2 75 16000 1200000

YEAR 3 100 16000 1600000

800000 Average commission including bonuses estimates @ 22.5%* Earnings from new business Rs Commission on renewal premium @ 6% For year 2,3 & 3% after that Earnings from renewal business Rs Total earnings Rs. 180000 48000 318000 48000 72000 48000 120000 480000 180000 180000 270000 360000 270000 360000

Depending on the product mix commission can go upto

35% in of first year, 7.5% in the 2 n d year & 3 r d year & 5% 4 t h year onwards?


Recognition programs : Foreign trips & seminars. Select club memberships:1. Birla Sun Life club. 2. Birla Sun Life star club.

MDRT Membership. Career progression & future opportunities: Exclusive program for high potential achievers. Hand picked advisors. A fast track career path. Recognition as Tiger Continue doing your business. Criteria. -Age 25 40 years -At least 1 year in system -Case count 2 per month Part time career as a Trainer. Conduct foundation programs. Share best flied practices. Replicate your business. Continue doing your business. Criteria.


-Age 25-45 years -At least 6 months s in system - 2 case count per month Fast track pinnacle programmes: A full time career as audit manager Greater earning potential Personal Development Performance criteria -Age 25-45 years -At least 6month in system -30 issuance within 6 months Pinnacle programmes: A full time career as a unit manager Greater earning potential Personal Development Performance criteria -Age 25-45 years -At least 1 year in systemDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

-Average 2 case count per month

Agency champion: Take your business to the next level Entrepreneurs ,develop your own business Recruit new advisor and make your own team Increased reach and earning potential Criteria

-At least 1 year in system -Minimum 36 policies and 3.6lacs premium -Selection process( assessment center) Next steps Confirmation of mutual interest Selection interview Profiling test dates Draft payment favoring Birla Sun Life Insurance Ltd payable in mumbai Finalize Training Dates, venue

Support team the Company: Field visits Training on products & selling skillsDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

regular business reviews be a coach & mentor recognize high performers help you become financially independent

Expectations of team Achieve sales targets Participate in all meetings Attend all training programs Weekly reviews at the office Follow the sales process Follow weekly reporting process


INSURANCE ADVISOR AGREEMENTInsurance advisor it is a kind of agreement done between advisor to be recruited and Birla Sun life Insurance Company Ltd.

BSLI is desires of appointing the as its Insurance advisor for soliciting and procuring life Insurance business for on behalf of BSLI and to provided various services the policy holders. Similarly Insurance advisor has to obtain and Insurance license to act and Insurance agent under Section 42 of Insurance act 1938 and its desires of being appointed as Insurance advisor of BSLI This is the kind of agreement which each and every advisor has to adhere. Its agreement give the brief discussion effective date of appointment, area of Insurance, advisor minimum performance requirement and service standards others conditions confidentially to be maintain and compensation and remuneration.


2. Effective Date and Appointment as Insurance Advisor: 2.1- This Agreement shall come into force on and from the date of issue of the license to the Insurance Advisor to act as an insurance agent, provided that the Company may choose, in writing, a date other than the date of issue of the license on and from which this Agreement shall come into force (such date of coming into force to this Agreement referred to as Effective Date in this Agreement). However, where the Insurance Advisor already holds a valid subsisting license before execution of this Agreement, the Effective Date of this Agreement shall be the date of execution of this Agreement. 2.2- BSLI hereby appoints the Party of the Other Part as Insurance Advisor and the Party of the Other Part hereby accepts his appointment as an Insurance Advisor of BSLI . 2.3- The appointment, continuance and functioning of the Insurance Advisor shall be also governed by and shall be subject to the provisions of the Applicable Laws.


3. Business Area of Insurance Advisor: 3.1- The Insurance Advisor will be entitled to solicit insurance business from such territories (and whether in India only or outside of India as well ) as shall be informed to the Insurance Advisor separately (such area referred to as Business Area and, area other than Business Area will be referred to as Non-Business Area). Where the Insurance Advisor proposes to source business from any Non- Business Area, he shall obtain the prior approval of BSLI. would be entitled to change / transfer his appointment to any other area. 3.2- The Insurance Advisor further agrees that even within his Business Area, he shall not solicit or procure life insurance business from any place/location which is on the list of Non-Serviceable Pin codes (Serviceable Pin code refers to pin codes of such areas where BSLI can provide customer service to its customers / policyholders, and any pin code other than Serviceable Pin code refers to Non- Serviceable Pin codes). The list of Serviceable Pin code areas as updated from time to time, Is available/posted on the Restricted Website Area and no separate communication in this regard will be sent. 3.3- The appointment of the Insurance Advisor for a Business Area shall be without prejudice to BSLIs right to appoint any other insurance advisor(s) in / for the same Business Area and such appointment of any other insurance advisor(s) shall not entitle the Insurance Advisor to claim any relaxation in the Minimum Performance Requirements applicable to him, nor shall accrue in his favour any cause of action. 4. Minimum Performance Requirements and Minimum Service Standards: 4.1- The Insurance Advisor shall at all times fulfill the Minimum PerformanceDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

Requirements in terms of new business, premium income, number of proposals, number of lives insured or on any other criteria as stipulated by BSLI from time to time (hereinafter referred to as the Minimum Performance Requirements). BSLI may stipulate from time to time the Minimum Performance Requirements and any revision thereto, for a specified period(s) or for any shorter period(s) within such overall specified period(s) or to specify the Insurance Product(s), which the Insurance Advisor shall solicit and procure for BSLI . The Minimum Performance Requirements (MPR) criteria would be intimated by BSLI to the Insurance Advisor in writing or by Email or by posting the same on the Restricted Website Area. 4.2- The Insurance Advisor would take all reasonable steps to conserve the insurance procured by him. He shall also endeavor that the policyholders for whom the is acting as the insurance adviser pay their premiums regularly and timely. The Company will be entitled to fix minimum service standards / service measures (collectively Minimum Service Measures) in respect of the Insurance Advisor. Such Minimum Service Measures would be intimated by BSLI to the Insurance Advisor in writing or by Email or by posting the same on the Restricted Website Area and the action that can be taken in case of the Insurance Advisor not being able to achieve the Minimum Service Standards. 5. Other conditions: 5.1- Without prejudice to the generality of the application of the provision of Applicable Law, the Insurance Adviser shall scrupulously follow, adhere to and affirm to comply with the Code of Conduct prescribed by the Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000, as amended from time to time (hereinafter referred to asDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

the Code of Conduct) as though the said Code of Conduct has been explicitly set out in and forms part of this Agreement. 5.2- The Insurance Advisor shall not allow or offer to allow, either directly or indirectly, as an inducement, to a prospect or a policyholder, to take out or renew or continue a policy, any rebate of the premium payable under the Policy or of the commission payable to him; nor shall he offer any other rates, advantages, terms or conditions than those offered by BSLI. The Insurance Advisor specifically confirms his awareness of and continued adherence to the provisions of Section 41 of the Insurance Act, 1938. Breach of this clause will entitle BSLI to terminate this Agreement forth with and without any notice. 5.3- The Insurance Advisor agrees and undertakes to abide by the following conditions: 5.3 a- The Insurance Advisors shall not to obtain / seek / provide / give undue favors or graft from / to any employee of BSLI or any co-advisor or any person, customer or policyholder of BSLI. 5.3 b- The Insurance Advisors shall not accept / give gift of substantial value (greater than Rs 1,000 or such amounts as BSLI may specify ) from / to any employee of BSLI or any co-advisor or any person, customer or policyholder of BSLI in connection with any matter or dealing concerning BSLI 5.3 c- The Insurance Advisor shall operate with values and standards befitting the standing of BSLI. 5.4- In the event of violation of Code of Conduct or any of the guidelines / operating instructions of the Company or on happening of any act of commission or omission which constitutes a malpractice, BSLI shall be entitled, without prejudice to its right of termination of this Agreement, to warn the Insurance Advisor or require it to take any steps or do any act in rectification of any such act, and Insurance Advisor agrees to act in accordance with any such communication.DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

5.5- The Insurance Advisor shall be responsible for the accuracy, truthfulness and completeness of the information furnished in the Agents Confidential Report in proposal forms logged by him or otherwise made available to BSLI in respect of any proposal. 5.6- The Insurance Advisor shall, promptly and in any case not later than the time stipulated by BSLI in that behalf transmit to the concerned office of BSLI all proposals for insurance and all other documents procured or received by or called for from him. This would include but shall not be restricted to customers / policyholders proposal forms, supporting or other documents, information, payment instruments, letters / communications addressed to BSLI and documents relating to assignment / nomination, Insurance Advisor shall ensure compliance with Section 64 VB of the Act. 5.7- The Insurance Advisor shall not and is not authorized to accept any money, in case from any prospect / customer / policyholder. Where any such person wishes or proposes to make any payment in cash, the Insurance Advisor shall direct him to the appropriate office of BSLI for making such payment personally or advise him of the permissible modes of payment to BSLI. Insurance Advisor can accept cheque, demand draft or other payment instruments (not being a bearer cheque) from a prospect or a policyholder if and only if they are drawn in the name of BSLI. Without prejudice to the other provisions of this Agreement providing for indemnification to BSLI by the Insurance Advisor, the Insurance Advisor specifically confirms and undertakes to hold BSLI safe, harmless and indemnified at any time and at all times against any demand, claim , action or proceeding arising from any breach, whether intended or not, of the provision of this clause. The Insurance Advisor further confirms that where he accepts any cash in breach of this clause, he shall be acting an agent of the customer / policyholder till the time the cash in deposited by him with BSLI, and will continue to beDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

such agent till he continues to hold any cash accepted from such customer / policyholder. 5.8- The Insurance Advisor shall attend all meetings, workshops, trainings and briefings conducted by or on behalf of BSLI to create / enhance awareness as to the Insurance Products, business plans and policies of BSLI and any other matter of relevance to them of which reasonable notice has been given to the insurance advisor. In particular the Insurance Advisor shall attend all training and refresher sessions for Insurance Advisors unless prevented by a cause, which in the opinion of BSLI is reasonable. 5.9- Where the Insurance Advisor intends to bring out or publish any material in any form through any medium, concerning BSLI, its business or its Insurance Products, the Insurance Advisor shall obtain prior written approval of BSLI. Further, he shall observe, follow and comply with the provisions of the Insurance Regulatory and Development Authority (Insurance Advertisements and Disclosure) Regulations, 2000 of the same. 5.10- The Insurance Advisor shall solicit and procure life insurance business for BSLI and discharge his obligations under this Agreement in accordance with BSLIs corporate objectives and with particular regard to BSLIs image and standing in the industry and in the community. 5.11- The Insurance Advisor shall observe, follow and comply with all the communication, directions and instructions given by BSLI from to time, either generally or with particular reference to the Insurance Advisor. Such communications, directions and instructions may be sent by courier, email, post, and fax or may be posted on the Restricted Website Area. 5.12- The Insurance Advisor shall familiarize himself with the Application Law as in force time to time and which has a bearing on the discharge of his obligations as an insurance agent; provided that in the event of any change in the Applicable Law resulting in a dilution or abrogation of his obligations under this Agreement, to the extent not provided otherwise, theDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

Insurance Advisor shall continue to be bound by the obligations as were existent prior to such change, unless expressly approved in writing by BSLI, or unless inconsistent with Applicable Law. 5.13- The Insurance Advisor shall not solicit or procure life insurance business for or promote the sales or distribution of the Insurance Products of any other Insurance company or seek or obtain or commence any employment in any other life insurance company so long as this Agreement is in force and for a period of six months after its termination. BSLI may however in writing waive the conditions under this sub clause. 5.14- The Company will be entitled to levy charges of deduct them from amounts payable to the Insurance Advisor as it may deem fit in respect to any of the services provided by the Company to the Insurance Advisor. 6. Compensation and Remuneration: 6.1- As compensation and remuneration for the due performance of his obligations under this Agreement, the Insurance Advisor shall be paid commission at such rates as may be notified by BSLI to the Insurance Advisor from time, subject to deduction of applicable taxes under the law in force from time to time in respect of policies effected through the insurance Advisor; provided that the Insurance Advisor may be paid commission for effecting the revival of lapsed policies subject to the provision of Subsection(2A) of Section 40 of the Act. The Insurance Advisor agrees to provide his income tax PAN number, or if acquired subsequently, immediately after the same has been so acquired. In the event of failure to provide PAN number, the Company will be entitled to block the payments of the Insurance Advisor. 6.2- BSLI shall be entitled to deduct the service tax (or any similar tax, in lieu of or in addition to service tax), including any cess, surcharge or similar tax thereon, from the commissions or any other amounts payable to theDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

Insurance Advisor. However, in best commercial interests BSLI may decide to recover only a part of such taxes and bear the rest. 6.3- BSLIshall be entitled to revise (upwards or downwards) the rates of commission, as in force from time to time, by notice in writing to the Insurance Advisor in any one of the following manner. 6.3 a- by a written notice to the Insurance Advisor; or 6.3 b- by posting the revised rates on the Restricted Website Area; or 6.3 c- providing copies of the revision to all the offices, branches, outlets or franchisees of BSLI. 6.4- The Insurance Advisor shall be deemed to have notice of the revised commission rates at the earliest of (a) on receipt of the written notice as per (a) above; or (b) publication or posting on the Restricted Website Area as per clause (b) above; or (c) copies of such revision being made available to BSLI office, branch, outlet or franchise nearest to the address of the Insurance Advisor as per clause (c) above. 6.5- BSLI shall be entitled to specify (and revise) differential commission rates for different Insurance Products and based on various parameters including new business premiums, renewal premiums, business done by Insurance Advisor etc. 6.6- In case of any excess or wrong payment of commission or any amount to the Insurance Advisor or any commission or any amount which subsequent to their payment becomes recoverable or receivable from the Insurance Advisor for any reason whatsoever, BSLI shall be entitled to adjust such amounts (which have been paid in excess or wrongly or have to be received / recovered back ) in the subsequent payment(s) to the Insurance Advisor, Alternatively, or where no amounts are due to the Insurance Advisor, BSLI will require the Insurance Advisor to repay or refund forthwith such amounts, and thereafter the Insurance Advisor shall repay theDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

amount within 15 days after the receipt of any communication from BSLI in that regard. 6.7- The payment of commission to the Insurance Advisor after the termination or cessation of this Agreement or payment of commission to the legal heirs of a deceased Insurance Adviser shall be as provided in the Applicable Law and in accordance with such other communications or guidelines of BSLI as may be specified in this behalf. 6.8- Notwithstanding the above, BSLI shall not be obliged to pay any commission or remuneration to the Insurance Advisor if the termination is on account of fraud or any criminal conduct or serious violation of Applicable Law. 7. Miscellaneous provisions: 7.1- All forms, applications, documents, properties or securities received by the Insurance Advisor for or on behalf of BSLI shall be held by him in trust for BSLI, and shall be promptly handed over to BSLI. Upon termination or cessation of this Agreement the Insurance Advisor shall promptly deliver / return, to BSLI in good condition all forms, application, documents, properties or securities and all sales literature, manuals and computer software received from or for or on behalf to or provided by BSLI In the event of failure of the Insurance Advisor to do so, BSLI shall be entitled to inform about such failure to IRDA, to organizations with which the Insurance Advisor has employment or to his business associates including any insurance company of which the Insurance Advisor becomes or proposes to become the insurance advisor, and further I BSLI will not furnish the NOC to the Insurance Advisor till such time the failure continues. 7.2- The Insurance Advisor shall indemnify and keep indemnified and save harmless at all times BSLI in respect of any indebtedness cast on BSLI or in respect or any claim, loss or damage or any action or proceeding ofDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

whatever nature or for any notices or expenses arising out of or caused by any act of omission of the Insurance Advisor in relation to any matter specified in this Agreement or breach of any provisions under this Agreement failing which BSLI may, without prejudice to any other right or remedy available to it under law, recover such debt, claim, loss, damage or expenses from any money due and payable to the Insurance Advisor. 7.3- The Insurance Advisor shall allow officers of BSLI (including its auditors and advisors), authorized in writing by BSLI , to inspect and make copies of all / any records maintained by the Insurance Advisor in relation to any subject matter under this Agreement. 8. Confidentiality: 8.1- All records, information and documents pertaining to BSLI or any of its customers / prospect / policyholder, including any personal data obtained from or for on behalf of or provided for BSLI and the contents of this Agreement will constitute Confidential Information. For the purpose of this clauses, any data, information or knowledge will also constitute Confidential information which is not in public knowledge and whether or not marked or identified as confidential and which is disclosed by BSLI to the Insurance Advisor and whether written, oral or in any other form (including without limitation, computer storage, tape or other electronic media forum). 8.2- The Insurance Advisor undertakes and aggresses not to disclose, directly or indirectly, and in any manner what so ever, whether during the currency of this Agreement or any time thereafter Confidential Information. However, such obligation of confidentiality will not apply in one or more of the following: 8.2 a- if and to the extent the disclosure is required by any law or any court, government agency or regulatory authority;DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

8.2 b- if the information is or becomes available to public (other than as a result of prior unauthorized disclosure by the Insurance Advisor); 8.2 c- if the information is or was received from a third party not known by the Insurance Advisor to be under a confidentiality obligation with regard to such information; or 8.3 d- if the Insurance Advisor is able to prove that the was lawfully in possession of the information (having been received on a non-confidential basis) 8.3- The Insurance Advisor aggress not to disclose or provide copies of any such materials, documents and other information, which are meant for internal circulation only, to any third parties. 9. Intellectual Property Rights: 9.1- The intellectual property rights (in the nature of trademark or copyright or any other right) in the brand name , product names, logos, designs, colour schemes, names, marks, designs, drawings, colour, artistic work / manner etc (hereafter collectively referred to as marks) as may be allowed by BSLI to be used by the Insurance Advisor shall vest solely and exclusively and at all times in BSLI and the Insurance Advisor aggress and undertakes not to set up an adverse claim in respect to the Marks at any time either during the currency of this Agreement or at any time thereafter. The Insurance Advisor also agrees and undertakes that it shall not allow the usage of Marks by any other third party. 9.2- The Insurance Advisor is permitted to use only such Marks in the course of providing services under this Agreement as agreed to by BSLI in writing. Where any such permission is given for use of any Marks (one or more), such permission will operate as a limited, revocable and nonexclusive permission for usage of such Marks and shall be subject to conditions and restrictions as may be specified. The permissions granted or to be granted will not include the permission / right, copy, modify, merge, orDETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

transfer the Marks or any of them. The Insurance Advisor agrees and undertakes no to alter or modify any Marks or add any content to the Marks. He further agrees not to remove, conceal or obliterate any copyright, creditline, date-line or other proprietary notice included in any document, material, or other of BSLI . Any goodwill generated through the Insurance Advisors use of the Marks shall inure solely to the benefit of BSLI. 10. Usage of Restricted Website Area: 10.1- The Insurance Advisor understands that BSLI provides certain information specific to insurance advisors on the Restricted Website Area. BSLI will provide, but without any obligation, such login ID to the Insurance Advisor to access contents specific to the Insurance Advisor. The Insurance Advisor agrees that they shall be fully responsible for any action taken through the Restricted Website Area by using his login ID and password. In the event there is any unauthorized usage or access noticed by the Insurance Advisor, he shall immediately bring the same to the notice of BSLI . It is clarified that BSLI will not be obliged to provide or pay for the cost of any internet connectivity, hardware and software that the Insurance Advisor may require for access to the Website or Restricted Website Area. The Insurance Advisor further agrees, confirms and undertakes not to use the Website for any purpose other than the permitted purpose, and not permit any other person to access the Restricted Website Area through his login ID and password. 11. Term and Termination: 11.1- This Agreement shall come into effect from the Effective Date and shall continue to be effective unless terminated in accordance with the provisions provided herein. 11.2- This Agreement shall terminate: 11.2.a- immediately and without any notice on the death of the Insurance Advisor:DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

11.2.b- immediately and without any notice on the presentation of a petition for the adjudication of the Insurance Advisor as insolvent: 11.2.c- forthwith by a written notice on any violation by the Insurance Advisor of any provision of the Application Law; or 11.2.d- forthwith by a written notice on the Insurance Advisor where he incurs any of the disqualifications mentioned in clauses(b), (c) or (d) of Sub-section (4) of Section 42 of the Act, whether or not his license to act as an insurance agent is cancelled. 11.2.e- forthwith by a written notice where it is found that the Insurance Advisor has (i) sought / obtained employment or insurance agency of any other life insurance Company (ii) indulged in any act of commission or omission in consonance with the direct competitors of BSLI. 11.3- This Agreement shall terminate on the expiry of 15 days notice served by BSLI on the Insurance Advisor if he11.3.afails to discharge the obligations under this Agreement to the satisfaction of BSLI, or commits breach of any of the provisions of this Agreement and does not remedy the same within 7 days of a notice to that effect from BSLI. No notice of remedying a breach will be given if it is not capable of being remedied. 11.3.bacts in a manner prejudicial to the interests of BSLIor to the interests or its Policyholders. Without prejudice to the generality of the foregoing the Insurance Advisor shall be deemed to have acted in a manner prejudicial to the interests of BSLI , if any averment in the Agents Confidential Report or in any document submitted by him in connection with a proposal for insurance or application for reinstatement of a Policy is found to be incorrect or untrue. 11.3.c- is found to have made any false or incorrect averment or suppressed any information, considered material by BSLI, in his application for appointment as Insurance Advisor;DETAILD STUDY OF INSURANCE POLICY & REQUIRMENT OF ADVISOR

11.3.d-

in the opinion of BSLI, becomes physically or mentally

incapacitated to discharge the obligations under this Agreement; 11.3.e- he fails to achieve the Minimum Performance Requirements or Minimum Service Standards as specified from time to time. 11.4- Notwithstanding anything contained in this Agreement, both parties shall have at all times right to terminate this Agreement by written notice to the other of 15 days without assigning any reason for such termination. 11.5- Upon termination of this Agreement in whatsoever manner BSLI shall be entitled to publish notices in newspapers and / or in any other media and / or to dispatch correspondence notifying the policyholders, customers, branch offices, franchisees, other insurance advisors and the general public of the termination of the agency of the Insurance Advisor and he being no more authorized to solicit or procure life insurance business for BSLI or to represent BSLI in any manner. Further, upon such termination, BSLI shall also be entitled to forthwith stop / suspend payment of any commission whether or not due in respect of any business done by the Insurance Advisor. Save as provided in the Insurance Act, no commission shall accrue to the Insurance Advisor from the termination of this Agreement. 12- The Insurance Advisor shall not be entitled to assign his rights and obligations hereunder to any person whomsoever. Nothing in this Agreement shall prohibit BSLI sentitlement to assign the Agreement and / or any of its rights and obligations hereunder to any person whomsoever.


Research Methodology


While making a study we very often look for what type of research methodology is to be used in this type of study. For implementation of a proper research methodology we have to first understand the meaning of research. Research is a process with the help of which new concepts arises. It is the increase in the actual knowledge stock. It can be called as movement from known to unknown and vice-versa. It is also a continuous process. It is a scientific as well as systematic process, which includes defining and redefining the problem to develop hypothesis, to collect and define the information/data, to analysis the information and bring out the mother of Discovery. An individual makes the effort in research and society or public takes its benefits because the results are usually generalized. Data collection The word data means any raw information, which is either quantitative or qualitative in nature, which is of practical or theoretical use. The task of data collection begins after a research problem has been defined and research design chalked out. While deciding about the method of data collection, the researcher should keep in mind that there are two types of data primary and secondary. Primary data: This is those, which are collected afresh and for the first Time, and thus happen to be original in character. There are many ways of data collection of primary data like observation method, interview method, through schedules, pantry Reports, distributors audit, consumer panel etc. The Team Managers and employees of both the Department were consulted to get information about procedure of both the online and off line share trading. But the method used by us for the primary data collection was through questionnaires.DETAILD STUDY OF INSURANCE

summer training project on BIRLA SUNLIFE

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