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CONTENTS

Introduction to insurance

Introduction to life insurance

Review of literature

Company profile

Plans of BLSI & ULIP

Comparasiom analysis

conclusion

PG.NO

INTRODUCTION TO INSURANCE

1818 saw the advent of life insurance business in India with the establishment of
the Oriental Life Insurance Company in Calcutta. This Company however failed in
1834. In 1829, the Madras Equitable had begun transacting life insurance business
in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and
in the last three decades of the nineteenth century, the Bombay Mutual (1871),
Oriental (1874) and Empire of India (1897) were started in the Bombay Residency.
This era, however, was dominated by foreign insurance offices which did good
business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and
London Globe Insurance and the Indian offices were up for hard competition from
the foreign companies.
In 1914, the Government of India started publishing returns of Insurance
Companies in India. The Indian Life Assurance Companies Act, 1912 was the first
statutory measure to regulate life business. In 1928, the Indian Insurance
Companies Act was enacted to enable the Government to collect statistical
information about both life and non-life business transacted in India by Indian and
foreign insurers including provident insurance societies. In 1938, with a view to
protecting the interest of the Insurance public, the earlier legislation was
consolidated and amended by the Insurance Act, 1938 with comprehensive
provisions for effective control over the activities of insurers.
The Insurance Amendment Act of 1950 abolished Principal Agencies. However,
there were a large number of insurance companies and the level of competition was
high. There were also allegations of unfair trade practices. The Government of
India, therefore, decided to nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance
sector and Life Insurance Corporation came into existence in the same year. The
LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies
245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when
the Insurance sector was reopened to the private sector.
The history of general insurance dates back to the Industrial Revolution in the
west and the consequent growth of sea-faring trade and commerce in the
17th century. It came to India as a legacy of British occupation. General Insurance
in India has its roots in the establishment of Triton Insurance Company Ltd., in the
year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd,
was set up. This was the first company to transact all classes of general insurance
business.
1957 saw the formation of the General Insurance Council, a wing of the Insurance
Associaton of India. The General Insurance Council framed a code of conduct for
ensuring fair conduct and sound business practices.
In 1968, the Insurance Act was amended to regulate investments and set
minimum solvency margins. The Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalisation)
Act, general insurance business was nationalized with effect from 1st January,
1973. 107 insurers were amalgamated and grouped into four companies, namely
National Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd and the United India Insurance Company Ltd.
The General Insurance Corporation of India was incorporated as a company in
1971 and it commence business on January 1sst 1973.
This millennium has seen insurance come a full circle in a journey extending to
nearly 200 years. The process of re-opening of the sector had begun in the early
1990s and the last decade and more has seen it been opened up substantially. In
1993, the Government set up a committee under the chairmanship of RN Malhotra,
former Governor of RBI, to propose recommendations for reforms in the insurance
sector.The objective was to complement the reforms initiated in the financial
sector. The committee submitted its report in 1994 wherein , among other things, it
recommended that the private sector be permitted to enter the insurance industry.
They stated that foreign companies be allowed to enter by floating Indian
companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, the

Insurance Regulatory and Development Authority (IRDA) was constituted as an
autonomous body to regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April, 2000. The key objectives of the IRDA
include promotion of competition so as to enhance customer satisfaction through
increased consumer choice and lower premiums, while ensuring the financial
security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for
application for registrations. Foreign companies were allowed ownership of up to
26%. The Authority has the power to frame regulations under Section 114A of the
Insurance Act, 1938 and has from 2000 onwards framed various regulations
ranging from registration of companies for carrying on insurance business to
protection of policyholders interests.
In December, 2000, the subsidiaries of the General Insurance Corporation
of India were restructured as independent companies and at the same time GIC was
converted into a national re-insurer. Parliament passed a bill de-linking the four
subsidiaries from GIC in July, 2002.
Today there are 28 general insurance companies including the ECGC and
Agriculture Insurance Corporation of India and 24 life insurance companies
operating in the country.
The insurance sector is a colossal one and is growing at a speedy rate of 1520%. Together with banking services, insurance services add about 7% to the
countrys GDP. A well-developed and evolved insurance sector is a boon for
economic development as it provides long- term funds for infrastructure
development at the same time strengthening the risk taking ability of the country
FUNCTION OF INSURANCE
The functions of Insurance can be bifurcated into three parts:
1. Primary Functions
2. Secondary Functions
3. Other Functions
The primary functions of insurance include the following:

Provide Protection
The primary function of insurance is to provide protection against future risk,
accidents and uncertainty. Insurance cannot check the happening of the risk, but
can certainly provide for the losses of risk.
Collective bearing of risk
Insurance is a mean by which few losses are shared among larger number of
people. All the insured contribute the premiums towards a fund and out of which
the persons
Exposed to a particular risk is paid.
Assessment of risk
Insurance determines the probable volume of risk by evaluating various factors that
give rise to risk. Risk is the basis for determining the premium rate also .
Provide Certainty
Insurance is a device, which helps to change from uncertainty to certainty.
Insurance is device whereby the uncertain risks may be made more certain.
Research and publicity
Insurers also spend money in research and publicity in creating risk consciousness
amongst which has a far reaching effect on reduction in national waste.
The secondary functions of insurance include the following:
Prevention of Losses
Prevention of losses causes lesser payment to the assured by the insurer and this
will encourage for more savings by way of premium. Reduced rate of premiums
stimulate for more business and better protection to the insured.
Small capital to cover larger risks
Insurance relieves the businessmen from security investments, by paying small
amount of premium against larger risks and uncertainty.
Contributes towards the development of larger industries
Insurance provides development opportunity to those larger industries having more
risks in their setting up. Even the financial institutions may be prepared to give
credit to sick industrial units which have insured their assets including plant and
machinery.

If improves efficiency
The insurance eliminates worries and miseries of loans at death and destruction of
property. The carefree person an devote his body and soul together for better
achievement. It improves not only his efficiency, but the efficiencies of the masses
are also advanced.
It helps economic progress
The insurance by protecting the society from huge losses of damage, destruction
and death, provides an initiative to work hard for the betterment of the masses. The
next factor of economic progress. The capital is also immensely provided by the
masses. The property, the valuable assets, the man, the machine and the society
cannot lose much at the disaster.
The other functions of insurance include the following:
Means of savings and investment
Insurance serves as savings and investment, insurance is a compulsory way of
savings and it restricts the unnecessary expenses by the insured's For the purpose
of availing income-tax exemptions also, people invest in insurance.
Source of earning foreign exchange
Insurance is an international business. The country can earn foreign exchange by
way of issue of marine insurance policies and various other ways.
Risk Free trade
Insurance promotes exports insurance, which makes the foreign trade risk free with
the help of different types of policies under marine insurance cover.
PURPOSE OF INSURANCE
1.
Insurance spreads the economic burden of losses by using funds
contributed by members of the group to pay for them. Thus, it is a loss
spreading device.
.The fundamental purpose of insurance however is neither the spreading nor
the prevention of losses. Rather, it is reduction of the uncertainty which is
caused by awareness of the possibility of loss.
3.
An insurance scheme provides certainty for the individual members of
the group by averaging loss costs. The contribution made by the individual to
the group is assumed, on the basis of predictions, to be his share of losses
suffered by the group.

In exchange for this contribution, he is assured that the group will assume
any losses that involve him. He transfers his risk to the group and averages
his loss costs, thus substituting certainty for uncertainty. He pays a certain
premium instead of facing the uncertainty of the possibility of large loss.
PRINCIPLE OF INSURANCE
Principles of Co-operation.
Insurance is co-operative device. If one person is providing for his own losses, it can not be
strictly insurance because in insurance, the loss is shared by a group of persons who are willing
to co-operate. It is the duty and responsibility of the insurer to obtain adequate funds from the
members of the society to pay them at the happening of the insured risk. Thus, the shares of loss
took the form of premium. Today, all the insured
give a premium to join the scheme of insurance. Thus, the insured are co-operating to share the
loss of an individual be payment of a premium in advance.
Principles of Probability
The loss in the shape of premium can be distributed only on the basis of theory of probability.
The chances of loss are estimated in advance to affix the amount of premium. Since the degree of
loss depends upon various factors, the affecting factors are analyzed before determining the
amount of loss. With the help of this principle, the uncertainty of loss is converted into certainty.
The insurer will have not to suffer loss as well have to gain windfall. Therefore, the insurer has
to charge only so much of amount which is adequate to meet the loss. The probability tells what
the chances of loss are and what will be the amount of losses.
The insurance, on the basis of past experience, present conditions and future prospects, fixes the
amount of premium. Without premium, no-operation is possible and the premium can not be
calculated without the help of theory of probability, and consequently no insurance is possible.
So, these two principles are the two main legs of insurance.

INTRODUCTION TO LIFE INSURANCE

What is a life insurance policy?
A life insurance policy provides financial protection to our family in the
unfortunate event of your death. At a basic level, it involves paying small sums
each month (called premiums) to cover the risk of our untimely demise during the

tenure of the policy. In such an event, our family (or the beneficiaries we have
named in the policy) will receive a lump sum amount. In case we live till the
maturity of the policy, depending on the type of life insurance policy we have
opted for, we will receive returns the policy may have earned over the years.
Today, there are many variations to this basic theme, and insurance policies cater to
a wide variety of needs.
What are the various types of life insurance policies?
Given below are the basic types of life insurance policies. All other life insurance
policies are built around these basic insurance policies by combination of various
other features.
Term Insurance Policy

A term insurance policy is a pure risk cover policy that protects the person
insured for a specific period of time. In such type of a life insurance policy, a
fixed sum of money called the sum assured is paid to the beneficiaries (family)
if the policyholder expires within the policy term. For instance, if a person
buys a Rs 2 lakh policy for 15 years, his family is entitled to the sum of Rs 2
lakh if he dies within that 15-year period.

If the policy holder survives the 15-year period, the premiums paid are not
returned back. The advantage, apart from the financial security for an
individuals family is that the premiums paid are exempt from tax.

These insurance policies are designed to provide 100 per cent risk cover and
hence they do not have any additional charges other than the basic ones. This
makes premiums paid under such life insurance policies the lowest in the life
insurance category.

Whole Life Policy

A whole life policy covers a policyholder against death, throughout his life
term. The advantage that an individual gets when he / she opts for a whole life
policy is that the validity of this life insurance policy is not defined and hence
the individual enjoys the life cover throughout his or her life.

Under this life insurance policy, the policyholder pays regular premiums
until his death, upon which the corpus is paid to the family. The policy does
not expire till the time any unfortunate event occurs with the individual.

Increasingly, whole life policies are being combined with other insurance
products to address a variety of needs such as retirement planning, etc.

Premiums paid under the whole life policies are tax exempt.

Endowment Policy

Combining risk cover with financial savings, endowment policies are among
the popular life insurance policies.

Policy holders benefit in two ways from a pure endowment insurance policy.
In case of death during the tenure, the beneficiary gets the sum assured. If the
individual survives the policy tenure, he gets back the premiums paid with
other investment returns and benefits like bonuses.

In addition to the basic policy, insurers offer various benefits such as double
endowment and marriage/ education endowment plans.

The concept of providing the customers with better returns has been gaining
importance in recent times. Hence, insurance companies have been coming out
with new and better ULIP versions of endowment policies. Under such life
insurance policies the customers are also provided with an option of investing
their premiums into the markets, depending on their risk appetite, using

various fund options provided by the insurer, these life insurance policies help
the customer profit from rising markets.

The premiums paid and the returns accumulated through pure endowment
policies and their ULIP variants are tax exempt.

Money Back Policy

This life insurance policy is favoured by many people because it gives

periodic payments during the term of policy. In other words, a portion of the
sum assured is paid out at regular intervals. If the policy holder survives the
term, he gets the balance sum assured.

In case of death during the policy term, the beneficiary gets the full sum
assured.

New ULIP versions of money back policies are also being offered by various
life insurers.

The premiums paid and the returns accumulated though a money back
policy or its ULIP variants are tax exempt.

ULIPs

ULIPs are market-linked life insurance products that provide a combination

of life cover and wealth creation options.

A part of the amount that people invest in a ULIP goes toward providing life
cover, while the rest is invested in the equity and debt instruments for
maximising returns. .

ULIPs provide the flexibility of choosing from a variety of fund options

depending on the customers risk appetite. One can opt from aggressive funds
(invested largely in the equity market with the objective of high capital
appreciation) to conservative funds (invested in debt markets, cash, bank

deposits and other instruments, with the aim of preserving capital while
providing steady returns).

ULIPs can be useful for achieving various long-term financial goals such as
planning for retirement, childs education, marriage etc.

Annuities and Pension

In these types of life insurance policies, the insurer agrees to pay the
insured a stipulated sum of money periodically. The purpose of an annuity is to
protect against financial risks as well as provide money in the formof pension
at regular intervals.
How does insurance work?

Insurance works by pooling risk.What does this mean? It simply means that a large
group of people who want to insure against a particular loss pay their premiums
into what we will call the insurance bucket, or pool. Because the number of insured
individuals is so large, insurance companies can use statistical analysis to project
what their actual losses will be within the given class. They know that not all
insured individuals will suffer losses at the same time or at all. This allows the
insurance companies to operate profitably and at the same time pay for claims that
may arise. For instance, most people have auto insurance but only a few actually
get into an accident. You pay for the probability of the loss and for the protection
that you will be paid for losses in the event they occur.
Risks
Life is full of risks - some are preventable or can at least be minimized, some are
avoidable and some are completely unforeseeable. What's important to know about
risk when thinking about insurance is the type of risk, the effect of that risk, the
cost of the risk and what you can do to mitigate the risk. Let's take the example of
driving a car.
Type of risk: Bodily injury, total loss of vehicle, having to fix your car
The effect: Spending time in the hospital, having to rent a car and having to make

car payments for a car that no longer exists

The costs: Can range from small to very large
Mitigating risk: Not driving at all (risk avoidance), becoming a safe driver (we still
have to contend with other drivers), or transferring the risk to someone else
(insurance)
Let's explore this concept of risk management (or mitigation) principles a little
deeper and look at how you may apply them. The basic risk management tools
indicate that risks that could bring financial losses and whose severity cannot be
reduced should be transferred. You should also consider the relationship between
the cost of risk transfer and the value of transferring that risk.

Risk Control
There are two ways that risks can be controlled. We can avoid the risk altogether,
or we can choose to reduce your risk.
Risk Financing
If we decide to retain our risk exposures, then we can either transfer that risk (ie. to
an insurance company), or we retain that risk either voluntarily (ie. we identify and
accept the risk) or involuntarily (we identify the risk, but no insurance is
available).
Risk Sharing
Finally, we may also decide to share risk. For example, a business owner may
decide that while he is willing to assume the risk of a new venture, he may want to
share the risk with other owners by incorporating his business.
So, back to our driving example. If we could get rid of the risk altogether, there
would be no need for insurance. The only way this might happen in this case would
be to avoid driving altogether. Also, if the cost of the loss or the effect of the loss is
reasonable to us, then we may not need insurance.
For risks that involve a high severity of loss and a low frequency of loss, then risk
transference (ie. insurance) is probably the most appropriate protection technique.
Insurance is appropriate if the loss will cause us or our loved ones a significant
financial loss or inconvenience. Do keep in mind that in some instances, we are

required to purchase insurance (i.e. if operating a motor vehicle). For risks that are
of low loss severity but high loss frequency, the most suitable method is either
retention or reduction because the cost to transfer (or insure) the risk might be
costly. In other words, some damages are so inexpensive that it's worth taking the
risk of having to pay for them yourself, rather than forking extra money over to the
insurance company each month.
The Risk Management Process
After you have determined that you would like to insure against a loss, the next
step is to seek out insurance coverage. Here we have many options available to you
but it's always best to shop around. We can go directly to the insurer through an
agent, who can bind the policy. The process of binding a policy is simply a written
acknowledgement identifying the main components of our insurance contract. It is
intended to provide temporary insurance protection to the consumer pending a
formal policy being issued by the insurance company. It should be noted that
agents work exclusively for the insurance company.
There are two types of agents:
1. Captive Agents: Captive agents represent a single insurance company and
are required to only do business with that one company.

2. Independent Agent: Independent agents represent multiple companies and

work on behalf of the client (not the insurance company) to find the most
appropriate policy.

Underwriting
Underwriting is the process of evaluating the risk to be insured. This is done by the
insurer when determining how likely it is that the loss will occur, how much the
loss could be and then using this information to determine how much you should
pay to insure against the risk. The underwriting process will enable the insurer to
determine what applicants meet their approval standards. For example, an
insurance company might only accept applicants that they estimate will have actual
loss experiences that are comparable to the expected loss experience factored into
the company's premium fees. Depending on the type of insurance product you are
buying, the underwriting process may examine your health records, driving

history, insurable interest etc.

The concept of "insurable interest" stems from the idea that insurance is meant to
protect and compensate for losses for an individual or individuals who may be
adversely affected by a specific loss. Insurance is not meant to be a profit center for
the policy's beneficiary. People are considered to have an insurable interest on their
lives, the life of their spouses (possibly domestic partners) and dependents.
Business partnersmay also have an insurable interest on each other and businesses
can have an insurable interest in the lives of their employees, especially any key
employees.
Insurance Contract
The insurance contract is a legal document that spells out the coverage, features,
conditions and limitations of an insurance policy. It is critical that we read the
contract and ask questions if we don't understand the coverage. We don't want to
pay for the insurance and then find out that what we thought was covered isn't
included
Insurance terminology:
Bound: Once the insurance has been accepted and is in place, it is called "bound".
The process of being bound is called the binding process.
Insurer: A person or company that accepts the risk of loss and compensates the
insured in the event of loss in exchange for a premium or payment. This is usually
an insurance company.
Insured: The person or company transferring the risk of loss to a third party
through a contractual agreement (insurance policy). This is the person or entity
who will be compensated for loss by an insurer under the terms of the insurance
contract.
Insurance Rider/Endorsement: An attachment to an insurance policy that alters
the policy's coverage or terms.
Insurance Umbrella Policy: When insurance coverage is insufficient, an umbrella
policy may be purchased to cover losses above the limit of an underlying policy or
policies, such as homeowners and auto insurance. While it applies to losses over
the dollar amount in the underlying policies, terms of coverage are sometimes
broader than those of underlying policies.

Insurable Interest: In order to insure something or someone, the insured must

provide proof that the loss will have a genuine economic impact in the event the
loss occurs. Without an insurable interest, insurers will not cover the loss. It is
worth noting that for property insurance policies, an insurable interest must exist
during the underwriting process and at the time of loss. However, unlike with
property insurance, with life insurance, an insurable interest must exist at the time
of purchase only.
FUNDAMENTAL PRINCIPLES OF INSURANCE
Some useful terms in Insurance:
A) INDEMNITY
A contract of insurance contained in a fire, marine, burglary or any other policy
excepting life assurance and personal accident and sickness insurance) is a contract
of indemnity. This means that the insured, in case of loss against which the policy
has been issued, shall be paid the actual amount of loss not exceeding the amount
of the policy, i.e. he shall be fully indemnified. The object of every contract of
insurance is to place the insured in the same financial position, as nearly as
possible, after the loss, as if his loss had not taken place at all. It would be against
public policy to allow an insured to make a profit out of his loss or damage.
B) UTMOST GOOD FAITH
Since insurance shifts risk from one party to another, it is essential that there must
be utmost good faith and mutual confidence between the insured and the insurer. In
a contract of insurance the insured knows more about the subject matter of the
contract than the insurer. Consequently, he is duty bound to disclose accurately all
material facts and nothing should be withheld or concealed. Any fact is material,
which goes to the root of the contract of insurance and has a bearing on the risk

involved. It is only when the insurer knows the whole truth that he is in a position
to judge
(a) Whether he should accept the risk and
(b) What premium he should charge.
If that were so, the insured might be tempted to bring about the event insured
against in order to get money.

C) Insurable Interest - A contract of insurance affected without insurable interest

is void. It means that the insured must have an actual pecuniary interest and not a
mere
anxiety or sentimental interest in the subject matter of the insurance. The insured
must be so situated with regard to the thing insured that he would have benefit by
its existence and loss from its destruction. The owner of a ship run a risk of losing
his ship, the charterer of the ship runs a risk of losing his freight and the owner of
the cargo incurs the risk of losing his goods and profit. So, all these persons have
something at stake and all of them have insurable interest. It is the existence of
insurable interest in a contract of insurance, which distinguishes it from a mere
watering agreement.
D) Causa Proxima - The rule of causa proxima means that the cause of the loss
must be proximate or immediate and not remote. If the proximate cause of the loss

is a peril insured against, the insured can recover. When a loss has been brought
about by two or
more causes, the question arises as to which is the causa proxima, although the
result could not have happened without the remote cause. But if the loss is brought
about by any cause attributable to the misconduct of the insured, the insurer is not
liable.

F) Mitigation of Loss - In the event of some mishap to the insured property, the
insured must take all necessary steps to mitigate or minimize the loss, just as any
prudent person would do in those circumstances. If he does not do so, the insurer
can avoid the payment of loss attributable to his negligence. But it must be
remembered that though the insured is bound to do his best for his insurer, he is,
not bound to do so at the risk of his life.
G) Subrogation - The doctrine of subrogation is a corollary to the principle of
indemnity and applies only to fire and marine insurance. According to it, when an
insured has received full indemnity in respect of his loss, all rights and remedies
which he has against
Third person will pass on to the insurer and will be exercised for his benefit until
he (the insurer) recoups the amount he has paid under the policy. It must be
clarified here that the
Insurers right of subrogation arises only when he has paid for the loss for which
he is liable under the policy and this right extends only to the rights and remedies
available to the insured in respect of the thing to which the contract of insurance
relates.

H) Contribution - Where there are two or more insurance on one risk, the
principle of contribution comes into play. The aim of contribution is to distribute
the actual amount of loss among the different insurers who are liable for the same
risk under different policies in respect of the same subject matter. Any one insurer
may pay to the insured the full amount of the loss covered by the policy and then
become entitled to contribution from his co-insurers in proportion to the amount
which each has undertaken to pay in case of loss of the same subject-matter.
In other words, the right of contribution arises when
1) There are different policies, which relate to the same subject matter
2) The policies cover the same peril which caused the loss, and
3) All the policies are in force at the time of the loss, and
4) One of the insurers has paid to the insured more than his share of the loss.
Policy is a form of security for the person who insures his life and his family. Life
insurance policies have helped trade and other economic activities to flourish in a
great manner. It has generated lots of job opportunities. It is looked upon as a
lucrative career option. Life insurance companies have also entered the
international business scenario.

SWOT Analysis

STRENGTH:
Multi-channel distribution and one of the largest distribution networks in India.
Implementing Six-Sigma process.
Customer centric products and services.
Superior investment and risk management framework .
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.
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.
SALES PROCEDURE IN BSLI
BSLI ensure that its policyholder get the best out of the policy offered to them by
their Advisors. Forthis, BSLI follows a set of procedure of selling Insurance to the
clients. The sales procedure can be diagrammatically represented as follows

1. Pitching the customer: The first and foremost thing is that, client should be
ready to purchase the Insurance plan. Insurance is not a very preferable product yet
in India. And, thus, co. has to be very vigilant. Advisors, at BSLI, maintain
relationships and make the most of their Goodwill. Insurance is a Relationship
oriented business. Keeping this in mind BSLI also initiated Bancassurance, Birla

Sun Life Insurance where Banks image of being loyal to the customers, plays a
major role in pitching the customer to buy Insurance. BSLI uses following routes
for distributing their Product to general public:
a. Direct Personal Contacts (through Advisors)
b. Bancassurance (through Banks)
c. Personal Relations (through co. employees)
d. Existing Policyholders.
2. Sales Illustration: BSLI is the first company to give demonstration of the fund
performance i.e. how a certain policy will perform or will give returns. BSLI
Advisors give sales illustration. Fund performance is shown on 6% and 10%
projections. If client find these projected returns suitable to his/her risk profile, he
go for purchasing the policy.
3. Proposal Form: Now as client is ready to get insured, advisor gives him the
proposal form and asks for all the documents required. Proposal form is a 4
page document that contains all the necessary information related to the
Insured and the Owner of the policy. Documents required along with the
proposal form are:
Date-Of-Birth Proof
Address & ID Proof
Income Certificate
Medical Certificates (only if Insurer is a senior citizen)
4. After Sales Service: Now after the Insurance is sold, follow-ups are
required. Advisor needs to maintain good relations with the policyholder.
Insurance co. can generate further business, only if, existing policyholders
are satisfied with the services being provided by the advisor of the co. Thus,
BSLI keeps this in mind and Business Development Executives
continuously track the needs of the policyholders. BSLI provides the
policyholders with monthly updates of the fund performance and also
discloses the asset portfolio of the fund. This assists the policyholders to
manage their policy according to their risk profile. They can, thus, change
their fund allocation as well as the asset allocation in any fund, chosen by
them.

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 premium 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.
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 assisted the
company in cementing its place amongst the leaders in the industry in terms of new
business premium income. The company's current capital base is Rs.520 crore.
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 eight
lakh shareholders, with a market capitalization of Rs.53, 400 crore.
A US $29 billion corporation in the League of Fortune 500, the Aditya Birla Group
is anchored by an extraordinary work force of 130,000 employees, belonging to 40
different nationalities. Over 60 per cent of its revenues flow from its operations
across the world.

The Aditya Birla Group is a dominant player in all its areas of operations viz;
Aluminium, Copper, Cement, Viscose Staple Fibre, Carbon Black, Viscose
Filament Yarn, Fertilisers, Insulators, Sponge Iron, Chemicals, Branded Apparels,
Insurance, Mutual Funds, Software and Telecom. The Group has strategic joint
ventures with global majors such as Sun Life (Canada), AT&T (USA), the Tata
Group and NGK Insulators (Japan), and has ventured into the BPO sector with the
acquisition of TransWorks, a leading ITES/BPO company.

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

MISSION
To be the first preference of our customers by providing innovative, need based life
insurance and retirement solutions to individuals as well as corporate. These
solutions will be made available by well-trained professionals through a multi
channel distribution network and superior technology.
Our endeavor will be to provide constant value addition to customers throughout
their relationship with us, within the regulatory framework. We will provide career

development opportunities to our employees and the highest possible returns to our
shareholders