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BIRLA SUNLIFE INSURANCE CO.LTD.

PROJECT REPORT

SUBMITTED TO

SAINT JOSEPH COLLEGE FOR HIGHER STUDIES

TONK

FOR THE DEGREE OF

BACHELOR OF BUSNIESS ADMINISTRATION

(2010-2013)

SUPERVISED BY SUBMITTED BY

MR.VINIT TAMBI URVASHI SHARMA

BBA-3 YEAR

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INTRODUCTION

Birla Sun Life Insurance Company (BSLI) is a joint venture between

the Aditya Birla Group and Sun Life Financial Inc of Canada and was

established in India in the year 2000.

Aditya Birla Group has established a strong financial presence in India

through Aditya Birla Financial Services Group with expertise in a wide array

of products which include wealth management, consumer finance, broking,

lending and private equity. The Aditya Birla Group is common and trusted

name in India with decades of presence in sectors ranging from cement,

metals, textile, telecom and retail business to name a few. Sun Life

Financial is a Canadian based financial services conglomerate with a

major chunk of its business in theinsurancedomain with a history of over140 years and hence provides the much needed expertise to this joint

venture in India.

Birla Sun Life Insurance Company has a vast distribution network of

almost 600 branches across India reaching out t more than 1500

towns. The already established companies of the Aditya Birla Financial

Services Group give it the expertise and reach to service and add more

consumers to the life insurance business. The company has a wide array oflife insurance products catering to all aspects of a persons life from

traditional plans to unit linked market plans. They have had Virendra

Sehwag and Yuvraj Singh as their branch ambassadors endorsing life

insurance products ofBirla Sun Life.

.With an experience of over 10 years, BSLI has contributed

significantly to the growth and development of the life insuranceindustry in India and currently ranks amongst the top 6 privatelife insurance companies in the country.

Known for its innovation and creating industry benchmarks, BSLIhas several firsts to its credit. It was the first Indian Insurance

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Company to introduce "Free Look Period" and the same wasmade mandatory by IRDA for all other life insurance companies.Additionally, BSLI pioneered the launch of Unit Linked LifeInsurance plans amongst the private players in India. To establish

credibility and furthertransparency, BSLI also enjoys the prestige to be the originatorof practice to disclose portfolio on monthly basis. These categorydevelopment initiatives have helped BSLI be closer to its policyholders expectations, which gets further accentuated by thecomplete bouquet of insurance products (viz. pure term plan, lifestage products, health plan and retirement plan) that thecompany offers.

Add to this, the extensive reach through its network of 600branches and 133,572 empanelled advisors. This impressivecombination of domain expertise, product range, reach and earson ground, helped BSLI cover more than 2.5 million lives since itcommenced operations and establish a customer base spreadacross more than 1500 towns and cities in India. To ensure thatour customers have an impeccable experience, BSLI has ensuredthat it has lowest outstanding claims ratio of 0.00% for FY 2011-12.

Additionally, BSLI has the best Turn Around Time according toLOMA on all claims Parameters. Such services are well supportedby sound financials that the Company has. The AUM of BSLIstood at 21062 crs as on March 31, 2012, while the company hasa robust capital base of Rs. 2450 crs.

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ABOUT ADITYA BIRLA GROUP:-

A US $40 billion corporation, the Aditya Birla Group is in the League ofFortune 500. It is anchored by an extraordinary force of over 136,000

employees, belonging to 42 different nationalities. The Group has beenranked Number 4 in the Global 'Top Companies for Leaders' survey andranked Number 1 in Asia Pacific for 2011. 'Top Companies For Leaders' isthe most comprehensive study of organisational leadership in the worldconducted by Aon Hewitt, Fortune Magazine and RBL (a strategic HR andLeadership Advisory firm).

Over 53 per cent of its revenues flow from its overseas operations. TheGroup operates in 36 countries Australia, Austria, Bangladesh, Brazil,

Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy,Ivory Coast, Japan, Korea, Laos, Luxembourg, Malaysia, Myanmar,Philippines, Poland, Russia, Singapore, South Africa, Spain, Sri Lanka,Sweden, Switzerland, Tanzania, Thailand, Turkey, UAE, UK, USA andVietnam.

Globally, the Aditya Birla Group is:::A metals powerhouse, among the worlds most cost-efficient aluminium

and copper producers.Hindalco-Novelis is the largest aluminium rollingcompany. It is one of the three biggest producers of primary aluminium

in Asia, with the largest single location copper smelter.::No.1 inviscose staple fibre::No.1 incarbon black::The fourth-largest producer ofinsulators::The fifth-largest producer of acrylic fibre::Among the top 10cementproducers::Among the best energy-efficientfertiliserplants

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::The largest Indian MNC with manufacturing operations in the USA

In India:::The largest fashion ( premium branded apparel) and lifestyle player::The second-largest manufacturer and largest exporter ofviscose

filament yarn::The largest producer in the chlor-alkali sector::Among the top threemobile telephony companies::A leading player inlife insuranceand asset management::Among the top two supermarket chains in the retail business::Among the top 6BPOcompanies::The largest manufacturer of linen fabric

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where

success does not come in the way of the need to keep learning afresh, tokeep experimenting.

Beyond business - The Aditya Birla Group:

::Works in 3,000 villages.::Reaches out to seven million people, annually through the Aditya Birla

Centre for Community Initiatives and Rural Development, spearheadedby Mrs. Rajashree Birla.

::Focuses on healthcare, education, sustainable livelihood, infrastructureand espousing social reform in India, Asia, Egypt, Philippines, Thailand,Laos, Indonesia, Korea and Brazil.In India:

:: Aditya birla Group runs 42 schools, which provide quality education to45,000 children. Of these, over 18,000 children receive free education.

:: Its 18 hospitals tend to more than a million villagers.:: In line with its commitment to sustainable development, has partnered

with the Columbia University in establishing the Columbia GlobalCentres Earth Institute in Mumbai.

::To embed CSR as a way of life in organisations, has set up the FICCI Aditya Birla CSR Centre for Excellence, in Delhi.

Transcending the conventional barriers of business because we believe it

is our duty to facilitate inclusive growth.

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ABOUT SUNLIFE FINANCE :-

Sun Life is a leading international provider of protection and wealthaccumulation products and services to individual and corporate customers.With offices in 24 countries serving millions of customers, we help peopleachieve financial peace of mind by providing sound financial solutionsthroughout their lifetimes.

The company was founded in 1865 and is headquartered in Toronto,Canada. Sun Life Financial Inc. is a public company and trades on theToronto, New York and Philippine stock exchanges under ticker symbolSLF.

Sun Life. Is a leading international financial services company, building onour strengths for nearly 150 years.

. sunlife objective is to deliver the best customer experience at every touchpoint, in every market in which we do business. Sunlife want its customersto achieve the peace of mind that comes with a lifetime of financial security.Its at the centre of all we do.

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Sunlife mission, vision and values are the DNA of its organization. Thesecommitments drive us forward and touch every business decision. From itsculture to Sunlife mission is to help customers achieve lifetime financialsecurity.Sunlife vision is to be an international leader in protection and wealthmanagement.Sunlife values are the foundation of our day-to-day business operations.

At Sun Life, were about:Integrity Sunlife is committed to the highest standards of business ethics and

goodgovernance.the products and services we offer around the globe it is a companydedicated to our customers financial success.

.

Key people of the organitation:-

BOARD OF DIRECTORS :-

Mr. Donald Stewart

Mr. Ajay Srinivasan

Mr. Kumar Mangalam Birla

Mr. Jayant Dua

Mr. Bishwanath Puranmalka

Mr. Kevin Strain

Mr. Gian Gupta

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Dr. Rakesh Jain

Mr. Suresh Talwar

Mrs. Tarjani Vakil

Mr. Venkatesh Mysore

MANAGEMNET TEAM:-

Mr. Jayant Dua

MD & CEO

Mr. Mayank Bathwal

CFO & Head of Institutional Sales

Mr. Amitabh VermaChief Operating Officer

Mr. Sashi Krishnan

Chief Investment Officer

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Mr. Niall O'Hare

Chief Actuarial Officer

Mr. Arun MalkaniChief Marketing Officer

Mr.Pramod Krishnamurthy

Head Information Technology

Mr. Saurov Ghosh

Head

Human Resources & Training

Mr. Lalit Vermani

Head Compliance, Risk, Legal & Audit

Mr. Vikas Seth

Head of Sales DSF

INVESTMENT TEAM:-

Mr. Ajay Srinivasan; Non - Executive DirectorMr. Jayant Dua; Managing DirectorMs. Keerti Gupta; Head - Investment Risk Management &OperationsMr. Mayank Bathwal; Chief Financial Officer & Head InstitutionalSales

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Mr. Niall Ohare; Chief Actuarial OfficerDr. Rakesh Jain; Non - Executive DirectorMr. Venkatesh Mysore; Non - Executive DirectorMr. Lalit Vermani; Member & Senior VP Compliance, Risk

Management, Internal Audit, Legal & SecretarialMr. Sashi Krishnan; Member & Chief Investment Officer

AUDIT TEAM:-

Mr. Gian P. Gupta - Independent Director & Committee Chairman

Mr. Ajay Srinivasan; Non - Executive DirectorMr. Bishwanath N. Puranmalka; Non - Executive DirectorMr. Jayant Dua; Managing Director

Ms. Tarjani Vakil; Independent DirectorMr. Venkatesh Mysore; Non - Executive DirectorMr. Kevin Strain; Member & Non-Executive Director

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Competitors:-

Life insurance corporation

ING vysya life insurance

Max network life insurance

MetLife insuranceAviva life insurance

Bharathi Axa life insurance

Bajaj Allianz life insurance

Tata AIG life insurance1

ICICI Prudential Life Insurance

Reliance life insurance

Kotak Mahindra life insurance

Competitors in Detail:-

Aviva life insurance: Aviva Life Insurance Company India Pvt. Ltd. is a joint

venturebetween Aviva of UK and Dabur, one of India's leading producers of traditionalhealthcare products. Aviva holds a 26 per cent stake in the joint venture and theDabur group holds the balance 74 per cent share.

Bajaj Allianz: Bajaj Allianz is a joint venture between Allianz AG one of the

world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3wheeler manufacturers in the world. Bajaj Allianz is into both life insurance andgeneral insurance. Allianz Group is one of the world's leading insurers andfinancial services providers. Founded in 1890 in Berlin, Allianz is now present inover 70 countries

HDFC Standard Life Insurance Co. Ltd: is a joint venture between HDFC

Ltd., India's largest housing finance institution and Standard Life AssuranceCompany, Europe's largest mutual life company. It was the first life insurance

company to be granted a certificate of registration by the IRDA on the 23rd ofOctober 2000.

ING Vysya Life Insurance Company Limited: is a joint venture between

Vysya Bank and ING Group of Holland, the world's 4th largest financial servicesgroup, with presence across 50 countries, and a heritage of over 150 years.

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Kotak Mahindra Old Mutual Life Insurance Ltd: is a joint venture between

Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is oneof India's leading financial institutions and offers a range of financial services such

as commercial banking.

Life Insurance Corporation of India: (LIC) is an autonomous body

authorized to run the life insurance business in India with its Head Office atMumbai. It has been established by an act of the Parliament and started functioningfrom 1/9/1956.

ICICI Prudential Life Insurance : ICICI Prudential life insurance is a part of

ICICI Bank.

Max New York Life Insurance Company Limited is a joint venture between

Max India Limited, a multi-business corporate, and New York Life International, aglobal expert in life insurance. New York Life is a Fortune 100 company that hasover 160 years of experience in the life insurance business.

MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife

Group and its Indian partners. The Indian partners include J&K Bank,Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities,

Way2Wealth, and Mini Muthoothu.

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd.

of the Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 percent shareholding in AMP Sanmar Life Insurance Company in August 2005.Taking over AMP Sanmar Life provided Reliance Life Insurance a readymadeinfrastructure and a portfolio.

SBI Life Insurance is a joint venture between the State Bank of India and

Cardiff SA of France. SBI Life Insurance is registered with an authorized capital ofRs 500 crore and a paid up capital of Rs 350 cores.

Tata AIG Life Insurance Company Limited is a joint venture between Tata

Group and American International Group, Inc. (AIG). Tata Group is one of theoldest and leading business groups of India. Tata Group has had a long associationwith India's insurance sector having been the largest insurance company in India

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prior to the nationalization of insurance. The Late Sir Dorab Tata was the founderChairman of New India Assurance Co. Ltd., a group company incorporated way

back in 1919.

Shriram Life Insurance Company Ltd is a joint venture between the Chennai-based

Shriram Group and the South African insurance major Sanlam. The companylaunched its operation in India in December 2005

STRENGTH:

Multi-channel distribution and one of the largest distribution networks in India.

Implementing Six-Sigmaprocess.

Customer centricproducts 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 ofHNI

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.

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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 towardsprivate company.

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

company.

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

later on the

market share of the company

INTRODUCTIO TO THE PROJECT

EVALUATION OF INSURANCE:-

The evaluation of insurance dates back as early as the commencement of tradbetween two countries in England, especially between the European countries.During the transportation of goods, there were chances of the ship being drownedin the rough sea conditions or attacked by the pirates, leading to huge loss to the

party sending goods. The traders of England devised a way whereby the loss of thegoods would be compensated by every trader putting in some amount as per theirfinancial strength so that a single party may not be the loser; this is the earlierconcept of insurance. This concept is taking shape for the last 300 years, yet inIndia the first insurance company was established in 1818 with the advent of

European widows. The name of the company was oriental life insurance company.

WHAT IS INSURANCE?

Insurance is a mechanism that ensures an individual to thrive on adverseconsequences by compensating the individual, his/her loss financially. Every

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individual in the world and all activities connected with him/her, be it life,profession, business, travel or any other pursuits are subject to unforeseen anduncalled for hazards or dangers. The benefit that an individual enjoys in his life byowning a car or a house or a factory can be snatched by sudden accident which canrender even the individual immobile, and his family vulnerable. At this critical

juncture, only insurance helps him not only to survive but recover his loss andcontinue his life in a normal manner, which would otherwise be unthinkable. Theconcept of insurance is quite simple. People, who are in similar trade and areexposed to the same risks, congregate and some to an agreement that if anyindividual member suffer a loss, then the loss will be shared by others andminimized in order to enable the individual member recover from the loss andcover his ground. Similarly the different kinds of risks can be identified andseparate groups can be formed to counter such risks and reduce to impact tomanageable proportion, in which the share could be collected from the members

either after theloss or in advance, at the time of admission to the group. This is an exemplary signof humanity and insurance therefore serve the mankind to a great extent; a pointmost of the individual tend to overlook, since monetary aspect is involved. Nowsuch is for tangible assets.

The concept of insurance has been extended beyond the coverage of tangibleassets. Exporters run the risk of importers in other country defaulting as well aslosses due to sudden fluctuations in the currency exchange rates, economic policiesturmoil. The risk are not insured. Doctors run the risk of being charged withnegligence and can subsequently liable for damage. The amount inquestion can befairly large, beyond the capacity of the individual to bear. These are insured. Thusinsurance is extended to intangible assets. In some countries even the voice of asinger , legs of the footballer can be insured, even though the advantage of spreadmay not be available in these cases. Satisfaction of economics needs requiresgeneration of income from some sources. If the property, which is the source ofsuch income, were lost fully or partially,

permanently, or temporarily, the income too would stop. The purpose of insuranceis to

safeguard against such misfortune few, through the help of the fortune many, whowere exposed to the same risk , but saved from the misfortune . Thus the essenceof insurance is to share losses substitute certainty by uncertainty.

The different types of human activities that come under the umbrella of insuranceare as follows.

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1. House/office/factory or any moveable object destroyed in life - Fire insurance

2. Shipment or transportation of goods - Marine insurance By ship, destroyed incatastrophe.

3. jewellery /cash/ household goods - Burglar insurance Stolen or robbed

4. Goods in transit by roads or railways destroyed. - Carrier insurance

5. Theft or accident of vehicles - Vehicle insurance

6. Financial cover in ailment /surgery etc - Health insurance

All these are non-life insurance. In conclusion one can safely say that the purpose

of insurance be it or non-life is to transfer the financial loss to the insurancecompany who spreads in over to the policyholders.

Life insurance

Life insurance (Life Assurance in British English) is a type of insurance. As in allinsurance, the insured transfers a risk to the insurer. The insured pays a premiumand receives a policy in exchange. The risk assumed by the insurer is the risk ofdeath of the insured.

How life insurance works

There are three parties in a life insurance transaction; the insurer, the insured, andthe owner of the policy (policyholder), although the owner and the insured areoften the same person. For example, if John Smith buys a policy on his own life, heis both the owner and the insured. But if Mary Smith, his wife, buys a policy onJohn's life, she is the owner and he is the insured. The owner of the policy is calledthe grantee (he or she will be the person who will pay for the policy). Anotherimportant person involved is the beneficiary. The beneficiary is the person or

persons who will receive the policy proceeds upon the death of the insured. Thebeneficiary is not a party to the policy, but is designated by the owner, who maychange 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 andconditions of the risk assumed. Special provisions apply, including a suicide clause

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wherein the policy becomes null if the insured commits suicide within a specifiedtime for the policy date (usually two years). Any misrepresentation by the owner orinsured on the application is also grounds for nullification. Most contracts have acontestability period, also usually a two-year period; if the insured dies within this

period, the insurer has a legal right to contest the claim and request additionalinformation 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 canprovide for greater or lesser amounts. The policy matures when the insured dies orreaches a specified age. The most common reason to buy a life insurance policy isto protect the financial interests of the owner of the policy in the event of theinsured's demise. The insurance proceeds would pay for funeral and other deathcosts or be invested to provide income replacingthe deceased's wages. Other reasons include estate planning and retirement. Theowner (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 insurancecompany) calculates the policy prices with intent to recover claims to be paid andadministrative costs, and to make a profit. The cost of insurance is determinedusing mortality tables calculated by actuaries. Actuaries are professionals who useactuarial science which is based in mathematics (primarily probability andstatistics). Mortality tables are statistically based tables showing average lifeexpectancies. The three main variables in a mortality table are age, gender, and useof 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 familyhistory 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 UnitedStates and their regulators was calculated during the 1980s. There is currently ameasure being pushed to update the mortality tables by 2008. The current mortalitytable assumes that roughly 2 in 1,000 people aged 25 will die during the term ofcoverage. This number rises roughly quadratically to about 25 in 1,000 people forthoseaged 65. So in a group of one thousand 25 year old males with a $100,000 policy, a

lifeinsurance company would have to, at the minimum, collect $200 a year from eachof thethousand 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 fromwhich to pay claims, and finance the insurance company's operations. Contrary to

popular belief, the majority of the money that insurance companies make comes

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directly from premiums paid, as money gained through investment of premiumswill never, in even the most ideal market conditions, vest enough money per yearto 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. Sinceadverse selection can have a negative impact on the financial results of the insurer,the insurer investigates each proposed insured (unless the policy is below acompany-established minimum amount) beginning with the application, which

becomes part of the policy. Group Insurance policies are an exception. Thisinvestigation and resulting evaluation of the risk is calledunderwriting. Health and lifestyle questions are asked, and the answers aredutifully recorded. Certain responses by the insured will be given furtherinvestigation. Life insurance companies in the United States support The MedicalInformation 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'sphysicians.

Life insurance companies are never required by law to underwrite or to providecoverage on anyone. They alone determine insurability, and some people, for theirown health or lifestyle reasons, are uninsurable. The policy can be declined (turneddown) or rated. Rating means increasing the premiums to provide for additionalrisks relative to that particular insured. Many companies use four general healthcategories for those evaluated for a life insurance policy. These categories arePreferred Best, Preferred, Standard and Tobacco. Preferred Best means that the

proposed insured has no adverse medical history is not under medication for anycondition, and his family (immediate and extended) has 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 havesome family history. Most people arein the Standard category. Profession, travel, and lifestyle also factor into not onlywhich category the proposed insured falls, but also whether the proposed insuredwill be denied a policy. For example, a person who would otherwise be in thePreferred 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 ofdeath before payingthe claim. The normal minimum proof is a death certificate and the insurer's claimformcompleted, signed, and often notarized. If the insured's death was suspicious andthe policy amount warrants it, the insurer may investigate the circumstances

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surrounding the death, before deciding whether there is a legal obligation to paythe claim.Proceeds from the policy may be paid in a lump sum or as an annuity paid overtime in regular recurring payments for either for the life of a specified person or aspecified time period.

Contribution of life insurance in development of economy

Contribution of Life Insurance Sector in the Economy

Flow of Insurance Industry in India

Structure of insurance industry: Snap Shot Industry

Aggregation of long term savings

Spread of financial services in rural Areas

Long term funds for infrastructure development of capital Markets/ Economic

Growth Employment generation

Special Futures

Growth Potential

DETAILS OF PRODUCTS

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

parents, children and loved ones need not be compromised. Insurance planningequips you to smooth out the uncertainties and adversities that life might send yourway, 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 insuranceproducts

1. Protection Plans2. Savings Plans

3. Child Plans

4. Investment Plans

5. Retirement Plans6. Group Plans

7. Rural Plans

Insurance Plans

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BSLI offers Lifeguard - a set of pure protection plans. Choose from amongst threedifferent product structures to insure your life and provide total security to yourfamily, 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.

Protection Plans

BSLI offers a variety of policies that give you the benefits of protection and theopportunity 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 ofCapital 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 amultiple 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 theguaranteed value is payable.

Facility to make withdrawals from the 6th policy year onwards till the end of thepolicy term. Every year withdraw up to 10% of the value of units.

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Additional credits payable as a percentage of the initial annual premium are paidalong with the death or maturity benefit.

Additional insurance for 10 years after the maturity, for an amount of 50% ofthe Sum Assured.

Savings Plans

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 atemporary break from premium payment.

Total transparency with the premium allocations, and other charges declaredupfront.

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 frompremium payment for a maximum of 1 year. This facility is available once if thepremium paying term is less than 15 years and twice, if it is 15 years or more. Youcan 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 amultiple 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 theguaranteed value is payable

Additional credits payable as a percentage of the initial annual premium are paidalong with the death or maturity benefit.

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Additional insurance for 10 years after the maturity, for an amount of 50% ofthe 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 atemporary breakfrom premium payment.Total transparency with the premium allocations, and other charges declaredupfront. 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 thepremium paying term is less than 15 years and twice, if it is 15 years or more.The capital guarantee is applicable only on the invested premium and the declared

bonus interests. You can also enhance your policy by adding Accident & DisabilityBenefit Rider, Waiver of Premium Rider and Critical Illness Rider.A unit-linked insurance plan with an assurance of Capital Guarantee which offersyou the benefit of a limited premium payment term. An ideal plan for protectionwith 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 maturityterm of 10, 15 or 20 years respectively.

Flexibility to choose a specific level of protection (Sum Assured), based on amultiple of the annual premium.

At the end of the term (maturity), the higher of the value of units or theguaranteed value is paid. On death, Sum Assured along with the higher of value ofunits or the guaranteed value is payable.

Additional credits payable as a percentage of the initial annual premium are paidalong with the death or maturity benefit.

Facility to make withdrawals from the 6th policy year onwards till the end of thepolicy 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.

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Flexibility to increase / decrease your annual premium amount

Total transparency with the premium allocations, and other charges declaredupfront.

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 thedeclared bonus interests. You can also enhance your policy by adding Accident &Disability Benefit Rider and Critical Illness Rider.

Presenting Premier LifeThe 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 yearpremium paying term.

Choice of sum assured: Choose a sum assured, which is a minimum multiple of1 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 riskappetite.

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 Timeunitlinked plans that meet your changing needsover a lifetime. These solutions have been developed to meet your savings,

protection and investment needs at every stage in life.

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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 atemporary break in the payment of annual contribution (available only with LifeTime).Facility of Automatic Cover Continuance, wherein the policy continues even ifthere 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 riskappetite.Choice to switch between investments options (4 free switches every policyyear).You can also enhance your policy by adding Critical Illness Rider, Major SurgicalAssistance Rider, Accident & Disability Benefit Rider, Accident Benefit Rider(available only with Life Time) and Waiver of Premium Rider. An insurance planthat 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 sumassured) 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 equalannual installments over 3 or 5 years.

You can also enhance your policy by adding Variety of Riders An insurance planthat givesyou added protection, savings, multiple options, plus the power of liquidity.

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The flexibility to choose your premium contribution.The flexibility to choose amongst three levels of cover (in the form of sumassured) for thesame 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 equalannualinstallments over 3 or 5 years.The flexibility of withdrawing up to 10% of the accumulated value of your

policy, after thefirst 5 policy years.You can also enhance your policy by adding Variety of Riders An ideal plan forthose whowant to accumulate funds on a regular basis while enjoying insurance protection.

Guaranteed Benefits: Guaranteed additions @ 3.5% of the Sum Assured,compoundedannually for the first 4 years of the policy.Extended Life Cover: An extended cover for 5 years after the maturity of the

policy, for50% of the sum assured, at no extra cost.Maturity Benefit: At the end of the term, the policyholder receives the full sumassured, theguaranteed additions and the vested bonuses.Death Benefit: The beneficiary receives the sum assured, the guaranteedadditions and thevested bonuses in case the life assured were to meet with an unfortunate event. Incase the lifeassured 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 SurgicalAssistanceRider, Accident & Disability Benefit Rider, Waiver of Premium Rider (WOP) As aresponsible

parent, you will always strive to ensure a hassle-free, successful life for your child.

However, lifeis full of Uncertainties and even the best-laid plans can go wrong. Heres how youcan 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 fromamongst a basket of 4 plans:

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Smart Kid regular premium

Smart Kid unit-linked regular premium

Smart Kid unit-linked regular premium II

Smart Kid unit-linked single premium II

CHILD PLANS

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 throughan annual payment of 10% ofthe sum assured, to your child, till the maturity of the policy, in the unfortunateevent of the death of the parent. All Smart Kid plans can be enhanced with theAccident & DisabilityBenefit Rider and Income Benefit Rider . You can alsoan Accident Benefit Rider to aSmart Kid Regular Premium policy, and a Waiver of Premium Rider (WOP) toSmart Kid unit-linked regular premium policy.Life Link II is a unique plan that combines the security of a life insurance policywith 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% ofthe initial premium or 105% of the initial premium. In the event of an unfortunatedeath, the beneficiary will receive higher of the value of units or the initial death

benefit, less any withdrawals.

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Withdrawal Benefit: One can make partial withdrawals from the accumulatedvalue of the policy after completion of one policy year.

Flexibility: Choose from four fund options, based on your investment objectiveand risk appetite. If at a later stage your financial priorities change, you can switch

between the various fund options, absolutely free, 4 times a year.

Investment Plans

Life Expectancy has been rising rapidly and today you can expect to live longerthan your earlier generations. For you, this increase will mean a longer retirementlife, stretching into a couple of decades. BSLI Retirement Solutions that combinethe 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 savings4. Why plan early?5. About AnnuitiesWhy plan for retirement?

For too many people, the joy of retirement after years of hard work is eclipsed bythe financial uncertainties that it brings. Despite all the planning and saving, youcan never sure whether your money will last a lifetime. Retirement planning offersa way to ensure a more enjoyable, stress free tomorrow. A prudent plan will ensurethat increasing life expectancy, higher inflation and increasing taxes do not eataway into your hard earned savings.

Retirement Plans

How much must I set aside for retirement?

To ensure a comfortable retired life, you would be wise to invest money intoadditional avenues like pension plans. How much you need to invest can beanswered 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?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. Employeebenefits have proven to be an excellent tool to optimize the retention of talent andimprove an organizations bottom-line. The quality of an organizations employee

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benefits establishes and maintains a company's image as acaring employer.Optimum care of employees is a long-term investment that results in asustained 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 SolutionsGroup Term Assurance: Helps provide affordable cover to members of a group.

Group Gratuity Plan: Helps employers fund their statutory gratuity obligation ina flexible and hassle-free manner.

Group Superannuation Plan: A flexible scheme (defined benefit and definedcontribution) 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 agroup. The cover could be uniform or based on designation/rank or a multiple ofsalary, 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 members death to the

beneficiary nominated by the member. It is a one-year renewable policy where onemaster policy covers all proposed employees comprising the group, with aminimum group size of 25 persons. New members can join the group and outgoingmembers can leave the group at any point during the policy term.

Highlights include:

Greater convenience for the employees with relaxed underwriting and medical

requirements.

"Free Cover Limits" with simplified underwriting depending upon the number

of employees in the group and the level of cover chosen.

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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 ascientific manner. Employers can avail of the tax benefits as applicable toapproved gratuity funds. The plan can also be customized to structure schemes thatcan 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 balancedand capital guarantee plan) where investments will be made in accordance with thefund 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

covers 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 transferEmployee 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) 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:

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BSLI Superannuation Scheme (for both Defined Benefit and DefinedContribution funds) offers substantial benefits to both employers and employees.The employer and employee can avail of tax benefits applicable to an approvedsuperannuation trust. The scheme will provide for a retirement fund for each

participating employee. An employee would be able to choose fromvarious annuity options or opt for partial commutation of corpus at retirement.Highlights include:

Wider choice of investments with Market Linked Plansto meet the diverse

financial goals. We offer 5 investment options (short-term debt, debt, balanced,growth and capitalguarantee plan) where investments will be made in accordance with the fundobjectives.

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 transferBSLI Rural Products are designed to meet the needs ofthe rural consumers. These products offer the following features:1. Low and Affordable Premiums2. Life Cover3. Savings Option4. Hassle free procedureBSLI offers 2 specially designed rural plans.

a) BSL IEndowment Plan

b) BSLI - Regular PremiumBSLI Endowment Plan:

BSLI offers the following features:Rural Plans

Life Cover and Savings

Regular Premiums

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Age at entry 18 - 45 Yrs

Premium Mode Half Yearly / Yearly

Term 5,10,15 Yrs

Sum Assured Rs.5,000 -20,000

Premium / Year Rs. 507 - 553 ( SA: Rs.10,000)1

Maturity/Death benefit Sum Assured

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 18 - 45 Yrs

Sum Assured Single

Premium / Year Rs 50200

Maturity/Death benefit Rs.5,000 - 20,000

Death Benefit Sum Assured

IRDA:

The insurance sector has been opened up in India, as there was an urgent need. Theinternational experience indicates those country with a liberalized insurance sectorhave witnessed a rapid growth in premium volumes enhancing the domestic savingrate. This happened in China,Malaysia and Singapore where a competitivemarket has led to improvement in Services and quicker settlement of claims. It isalso important to note that competition will bring about advancement ininformation, communication and technology. And rightly therefore a decisionwas taken by the Government of India to open up Insurance sector. Theestablishment ofIRDA in the month of April 2000 has been importantdevelopment in this direction, making the end ofmonopoly in the insurance sector.

WHY INSURANCE IN INDIA:

Only 22% of the insurance population has been extended cover. Marketpenetration 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.

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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 revealed that in an emerging market, as disposableincome rises, Insurance premiums as a ratio of GDP shoots up. The confederationof Indian Industry projected a growth of Life Insurance premiums from Rs.350Billion at present to Rs.140 Billion. The Growth of non-life insurance premium isexpected to increase from 75 billion to 375 billion. Out of which, only 10% istapped by the existing insurer. Insurance even more than banking is a volumegame. A very exclusive approach in view is unlikely to provide meaningfulnumbers. Currently, insurance is bought for the purpose of taxbenefits.A higher percentage of business is in the rural market. The share of rural newBusiness 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 recentissues 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 60 Products and GIC hasmore than 180 Products? Not only there is a reduction in the premiums of LifeInsurance products have long overdue since Indian morality rate has decreasedthree folds in the last 50 years. There is also scope to increase the yield on lifeinsurance policies (presently 6%) with proper risk management in place.

It is been debated that insurance business does not produce profit in the first fiveyears cross subsidization is a feature of Indian market. Even the first portfolio votethat is considered profitable, cross subsidizes other departments. Tariffs reductionis likely to reduce profits; further insurers have to institute proper claimsmanagement progress in order to extract efficiencies. At present life insurance

business in the country is taxed at 12.5% of the profit in financial year. Thegovernment is soon to present a new model of taxing life insurance companies atinternational rates. New entrants should be well advised to look ahead to the stagewhere brand strength will be a competitive advantage and sketch their alliancesaccordingly. 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 forthis insurance trend will be led by two factors, which already apply in other worldmarket. First Banking food insurance, fund management and other financialservices companies are being to increase their profitability and provide maximum

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value to their customers. Therefore, they are themselves looking for a range ofproducts to distribute. In other market notably Europe; this has resulted inbank assurance. Bank entering into the insurance business in India to bank hope tomaximize expensive existing network by selling a range of products more of a lossalliance between insurance and bank than a formal ownership. Some Indianentrants like ICICI, HDFC and Reliance hope to ride their existing network andcustomer bases.

UNDERWRITING DEPARTEMENT

What is underwriting?