Birla Sunlife Insuranse (Finance)

7/30/2019 Birla Sunlife Insuranse (Finance)

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AA

PROJECT REPORTPROJECT REPORT

ONON

ANALYSIS OF FINANCIAL STATEMENT

OF BIRLA SUNLIFE INSURANCE

SSUBMITTEDUBMITTEDININ PPARTIALARTIAL FFULFILMENTULFILMENTOFOF TTHEHE RREQUIREMENTEQUIREMENT

FORFORTHETHE AAWARDWARDOFOFTHETHE DDEGREEEGREE OF BOF BACHELORACHELORIINNBUSINESSBUSINESS AADMINISTRATIONDMINISTRATION

SUBMITTED BY:SUBMITTED BY: SUBMITTED TO:SUBMITTED TO:

ABHINAV UPPAL ETI JAIN

BBA 6TH SEMESTER

BHARATI VIDYAPEETH DEEMED UNIVERSITY

SCHOOL OF DISTANCE EDUCATION

Academic Study Center - BVIMR, New Delhi

An ISO 9001:2008 Certified Institute

NAAC Accredited Grade A University


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ACKNOWLEDGEMENT

"Accomplishment of any task necessarily depends upon the willingness andenthusiastic contribution of time and energy of many people."

From the starting till the completion of this project, there are many people without

whose assistance all my efforts would have been fruitless. I, therefore, acknowledge

all who generously helped me by sharing their time, experience and knowledge with

me without which this project would have never been accomplished.

I must express my gratitude to EtI JAIN (my project guide) whose

perceptive guidance, constant encouragement, constructive criticism and affection

were the light of guidance during my tenure of my work.

Finally, I would like to state that the project not only fulfilled an academic

requirement, but would also help me in future endeavors in the years to come.

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PREFACE

A hallmark of any premier business school is its willingness and ability to constantly

explore and implement new ideas and practices in the field of management education.

Institute constantly reorients their programs in order to keep abreast of changing

development.

The initial interaction between school students and industry takes place when the

students undergo project is usually for knowing the process for recruitment, selection,

industrial relations & training of that institution. It is often the exposure to corporate

culture that a student receives, particularly true for students without prior work

experience.As a part of curriculum of BBA have joined BIRLA SUNLIFE INSURANCE,

New Delhi for summer training & project. BIRLA SUNLIFE INSURANCE is a

service oriented

Co-operative democratic institution engaged in giving the best in banking services to

its customers.

During my training at BIRLA SUNLIFE INSURANCE, Head Office I was

taken project on marketing & financial services of BIRLA SUNLIFE INSURANCE.

The main purpose of the study is to know the policies of the bank regarding

marketing & financial services, which helped me in gaining knowledge about the

different working pattern of different departments of a bank.

ABHINAV UPPAL

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TABLE OF CONTENT

PARTICULAR PAGE NO.

ACKNOWLEDGEMENT

PREFACE

INTRODUCTION

Introductions to insurance industry

Profile of the organization

Problems of the organization

Competition information

SWOT analysis of the organization

RESEARCH METHODOLOGY Objective

Types of research

Methodology

Research design

Limitations

CONCEPTUAL DISCUSSION

DATA ANALYSIS

FINDINGS & RECOMMENDATIONS

CONCLUSION

BIBLIOGRAPHY

QUESTIONNAIRE

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CHAPTER-1

INTRODUCTION

INTRODUCTION

INTRODUCTIONS TO INSURANCE INDUSTRY:-

The story of insurance is probably as old as the story of mankind. Tendency of a

human being to secure themselves against loss and disaster has been from the starting

of world. They sought to avert the evil consequences of fire and flood and loss of life

and were willing to make some sort of sacrifice in order to achieve security. Though

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the concept of insurance is largely a development of the recent past, particularly after

the industrial era past few centuries yet its beginnings date back almost 6000 years

as per records.

Functions of insurance:

Provide Protection: The primary function of insurance is to provide protection

against future risk, accidents and uncertainty. Insurance cannot check the

happening of risk, but can certainly provide for the losses of risk. Insurance is

actually a protection against economic loss, by sharing the risk with others.

Collective bearing of risk: Insurance is an instrument to share the financial loss

of few among many others. 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.

Small capital to cover larger risk: Insurance relieves the businessmen from

security investments, by paying small amount of premium against larger risks and

uncertainty.

Contributes towards the development of 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.

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.

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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.

Insurance is divided into two basic zones:

General Insurance

Life insurance

GENERAL INSURANCE

Insurance of the non life assets are called general insurance, this includes loss of asset

against water, fire, earthquake etc. With the opening up of the Indian Market in

Insurance sector for private players, in General Insurance the monopoly of the general

Insurance public sectors companies has been broken. With the entrance of the new

private player market innovative technique has been introduced to capture the market.

In general Insurance around 17% of the market has been captured by the private

players.

General Insurance is a sector which alone has many type of insurance coverage in it

like Fire Insurance, Marine Insurance, motor Insurance, Liability Insurance,

Engineering Insurance etc.

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The Non Life Insurers:

National Insurance Co. Ltd

New Indian Assurance Co. Ltd

Oriental Insurance Co. Ltd

United India Insurance Co. Ltd

Tata AIG General Insurance Co. Ltd

Bajaj Allianz General Insurance Co. Ltd

IFFCO Tokio General Insurance Co. Ltd

BIRLA SUNLIFE INSURANCE Lombard General Insurance Co. Ltd

Reliance General Insurance Co. Ltd

Royal Sundaram Alliance Insurance Co. Ltd

Bharti Axa General Insurance

HDFC Chub

ORIGIN

Life insurance is a contract under which the insurer (Insurance Company) in

Consideration of a premium paid undertakes to pay a fixed sum of money on the

death of the insured or on the expiry of a specified period of time, whichever is

earlier. In case of life insurance, the payment for life insurance policy is certain. The

Event insured against is sure to happen only the time of its happening is not known.

So life insurance is known as Life Assurance. The subject matter of insurance is life

of human being. Life insurance provides risk coverage to the life of a person. On

death of the person insurance offers protection against loss of income and compensate

the titleholders of the policy.

Roles of Life Insurance

Life insurance as an investment: Insurance products yield more than any

other investment instruments and it also provides added incentives or bonus

offered by insurance companies.

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Life insurance as risk cover: Insurance is all about risk cover and protection

of life. Insurance provides a unique sense of security that no other form of

invest can provide.

Life insurance as tax planning: Insurance serves as an excellent tax saving

mechanism too.

Importance of Life Insurance

Protection against untimely death: Life insurance provides protection to the

dependents of the life insured and the family of the assured in case of his

untimely death. The dependents or family members get a fixed sum of money

in case of death of the assured.

Saving for old age: After retirement the earning capacity of a person reduces.

Life insurance enables a person to enjoy peace of mind and a sense of security

in his/her old age.

Promotion of savings: Life insurance encourages people to save money

compulsorily. When life policy is taken, the assured is to pay premiums

regularly to keep the policy in force and he cannot get back the premiums,

only surrender value can be returned to him. In case of surrender of policy, the

policyholder gets the surrendered value only after the expiry of duration of the

policy.

Initiates investments: Life Insurance Corporation encourages and mobilizes

the public savings and channelizes the same in various investments for the

economic development of the country. Life insurance is an important tool for

the mobilization and investment of small savings.

Credit worthiness: Life insurance policy can be used as a security to raise

loans. It improves the credit worthiness of business.

Social Security: Life insurance is important for the society as a whole also.

Life insurance enables a person to provide for education and marriage of

children and for construction of house. It helps a person to make financial base

for future.

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Balance sheet(Rs crore)

Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08

Sources of funds

Owner's fund

Equity share capital 77.01 77.01 77.01 77.01 77.01

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 2,158.80 1,973.12 1,706.21 1,202.48 919.53

Loan funds

Secured loans 922.62 770.64 518.20 219.40 206.01

Unsecured loans 201.71 174.77 132.36 8.36 21.49

Total 3,360.14 2,995.54 2,433.78 1,507.25 1,224.04

Uses of funds

Fixed assets

Gross block 2,201.11 1,751.32 1,430.02 1,354.20 1,173.44

Less : revaluation reserve 7.79 7.79 8.00 8.22 8.44

Less : accumulated depreciation 848.58 775.91 731.33 694.15 672.64

Net block 1,344.75 967.62 690.68 651.82 492.36

Capital work-in-progress 509.62 488.94 327.77 141.86 149.11

Investments 1,044.81 1,169.21 1,141.65 552.29 634.00

Net current assets

Current assets, loans & advances 1,199.20 1,092.60 870.69 708.33 737.06

Less : current liabilities & 738.24 722.84 597.01 547.05 788.49

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provisions

Total net current assets 460.96 369.76 273.68 161.28 -51.44

Miscellaneous expenses not

written - - - - -

Total 3,360.14 2,995.54 2,433.78 1,507.25 1,224.04

Notes:

Book value of unquoted

investments 294.26 424.05 775.03 462.06 618.82

Market value of quoted

investments 755.73 790.48 448.95 117.81 136.94

Contingent liabilities 243.51 392.50 331.60 237.54 92.46

Number of equity

sharesoutstanding (Lacs) 770.05 770.05 770.05 770.05 770.05

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Profit loss account(Rs crore)


Income

Operating income 2,289.46 2,146.37 2,164.44 1,802.82 1,724.91

Expenses

Material consumed 681.53 598.60 473.74 455.51 314.69

Manufacturing expenses 610.28 541.21 469.18 432.74 421.33

Personnel expenses 213.80 174.26 146.27 148.59 141.45

Selling expenses 350.03 326.80 288.40 258.54 214.53

Adminstrative expenses 71.39 66.58 65.72 61.84 57.07

Expenses capitalised -56.01 -9.32 - - -

Cost of sales 1,871.02 1,698.13 1,443.31 1,357.23 1,149.07

Operating profit 418.43 448.23 721.13 445.59 575.84

Other recurring income 94.45 97.97 73.23 26.03 27.98

Adjusted PBDIT 512.89 546.20 794.36 471.61 603.81

Financial expenses 108.09 61.95 26.97 22.05 21.05

Depreciation 80.00 64.83 55.64 43.42 41.44

Other write offs - - - - -

Adjusted PBT 324.80 419.41 711.75 406.15 541.32

Tax charges 106.84 117.78 203.63 112.95 157.61

Adjusted PAT 217.95 301.63 508.12 293.19 383.71

Non recurring items 13.97 13.83 35.33 24.51 6.05

Other non cash adjustments 7.28 4.42 13.73 5.81 3.81

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Reported net profit 239.21 319.88 557.18 323.51 393.57

Earnigs before appropriation 429.71 510.77 658.10 491.46 553.99

Equity dividend 46.20 46.20 46.20 34.65 30.80

Preference dividend - - - - -

Dividend tax 7.50 7.57 7.75 5.89 5.23

Retained earnings 376.01 457.00 604.15 450.92 517.95

Ratios

(Rs crore)


Per share ratios

Adjusted EPS (Rs) 28.30 39.17 65.98 38.07 49.83

Adjusted cash EPS (Rs) 38.69 47.59 73.21 43.71 55.21

Reported EPS (Rs) 31.06 41.54 72.36 42.01 51.11

Reported cash EPS (Rs) 41.45 49.96 79.58 47.65 56.49

Dividend per share 6.00 6.00 6.00 4.50 4.00

Operating profit per share (Rs) 54.34 58.21 93.65 57.86 74.78

Book value (excl rev res) pershare EPS (Rs) 290.34 266.23 231.57 166.16 129.41

Book value (incl rev res) per

share EPS (Rs) 291.36 267.24 232.61 167.22 130.51

Net operating income per share

EPS (Rs) 297.31 278.73 281.08 234.12 224.00

Free reserves per share EPS

(Rs) 273.94 252.00 219.58 155.95 119.21

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Profitability ratios

Operating margin (%) 18.27 20.88 33.31 24.71 33.38

Gross profit margin (%) 14.78 17.86 30.74 22.30 30.98

Net profit margin (%) 10.03 14.25 24.90 17.68 22.45

Adjusted cash margin (%) 12.49 16.32 25.19 18.40 24.25

Adjusted return on net worth

(%) 9.74 14.71 28.49 22.91 38.50

Reported return on net worth

(%) 10.69 15.60 31.24 25.28 39.49

Return on long term funds (%) 14.48 18.08 33.66 30.24 51.08

Leverage ratios

Long term debt / Equity 0.33 0.29 0.23 0.10 0.10

Total debt/equity 0.50 0.46 0.36 0.17 0.22

Owners fund as % of total

source 66.53 68.43 73.26 84.88 81.41

Fixed assets turnover ratio 0.71 1.23 1.51 1.33 1.47

Liquidity ratios

Current ratio 1.62 1.51 1.46 1.29 0.93

Current ratio (inc. st loans) 0.93 0.89 0.92 0.97 0.72

Quick ratio 0.99 0.96 0.93 0.89 0.65

Inventory turnover ratio 19.77 15.87 18.37 26.19 20.17

Payout ratios

Dividend payout ratio (net

profit) 22.44 16.81 9.68 12.53 9.15

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Dividend payout ratio (cash

profit) 16.82 13.97 8.80 11.04 8.28

Earning retention ratio 75.37 82.18 89.39 86.18 90.61

Cash earnings retention ratio 81.98 85.33 90.44 87.96 91.53

Coverage ratios

Adjusted cash flow time total

debt 3.77 2.58 1.15 0.67 0.53

Financial charges coverageratio 4.75 8.82 29.45 21.39 28.68

Fin. charges cov.ratio (post tax) 3.95 7.21 23.72 17.64 21.66

Component ratios

Material cost component (%

earnings) 28.00 29.56 23.47 24.41 19.95

Selling cost Component 15.28 15.22 13.32 14.34 12.43

Exports as percent of total sales 3.36 4.63 3.28 5.01 4.06

Import comp. in raw mat.

consumed 8.47 15.83 33.31 5.34 23.44

Long term assets / total Assets 0.70 0.70 0.71 0.65 0.63

Bonus component in equity

capital (%) 35.90 35.90 35.90 35.90 35.90

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INDIAN INSURANCE INDUSTRY

HISTORY:

Life insurance came to India from England in 1818 when oriental life insurance

company started in Calcutta by Europeans. After this many insurance companies had

been started in India. But these companies were looking after only the needs of

European community established in India. Indian people were not being insured by

these companies. First Indian life insurance company came as Bombay mutual life

insurance assurance. Second company was Bharat insurance company came in 1896.

After this the united India in Madras, national Indian and national insurance in

Calcutta and the co-operative assurance in Lahore were established in 1906.

To regulate Indian insurance business first insurance act came in 1912 as life

insurance company act and provident fund act. These acts consist of premium rates

tables and periodical valuations of companies. In the first two decade of 20th century

many life insurance companies were started. So the insurance act came in 1938 to

governing life and non life insurance companies and to provide strict state control. In

1956 the life insurance business in India was nationalized. In 1956 life insurance

corporation of India (LIC) was created to spreading life insurance much more widely

particularly in rural areas. In that year LIC had 5 zonal offices, 33 divisional offices

and 212 branch offices. In 1957 the business of LIC of sum assured of 200crores,

1000crores in 1970, and 7000crores in 1986.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY:

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 ofthe 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.

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Powers and Functions

a) It issues the applicants in insurance arena, a certificate of registration as well as

renewal, modification, withdrawal, suspension or cancellation of such registrations.

b) It protects the interests of the policy holders in any insurance company in the

matters related to the assignment of policy, nomination by policy holders, insurable

interest, and resolution of insurance claim, submission value of policy and other terms

and proposals in the contract.

c) It also specifies obligatory credentials, code of conduct and practical instructions

for mediator as well as the insurance company. Apart from this, it also defines the

code of conduct for the surveyors and loss assessors involved with the insurance

business.

d) One of the major functions of IRDA includes endorsing competence in the

insurance business. Apart from this, upholding and regulating professional

organizations in insurance and re-insurance business is also a major duty of IRDA.

e) IRDA is also entitled to for asking information, undertaking inspection and

investigating the audit of the insurers, mediators, insurance intermediaries and other

organizations related to the insurance sector.

f) It is also concerned with the regulation of the rates, profits, provisions and

conditions that may be offered by insurers in respect of general insurance business if

it is not controlled or regulated by the Tariff Advisory Committee.

g) It is also entitled to supervise the functioning of the Tariff Advisory Committee.

IRDA specifies the terms and pattern in which books of accounts are to be maintained

and statement of accounts shall be provided by insurers and other insurance mediators

.

h) It also regulates investment of funds by insurance companies as well as the

maintenance of margin of solvency

Role of IRDA:

Protecting the interests of policyholders.

Establishing guidelines for the operations of insurers and brokers.

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Specifying the code of conduct, qualifications and training for insurance

intermediaries and agents.

Promoting efficiency in the conduct of insurance business.

Regulating the investment of funds by insurance companies.

Specifying the percentage of business to be written by insurers in rural sectors.

Handling disputes between insurers and insurance intermediaries.

Changing perception of Indian customers:

Indian Insurance consumers are like Indian Voters, they are soft but when time is

right and ripe, they demand and seek necessary changes. De-tariff of many Insurance

Products are the reflection of changing aspirations and growing demand of Indian

consumers.

For historical years, Indian consumers were at receiving end. Insurance Product was

underwritten and was practically forced onto consumers on a Take-it-As-it-basis.

All that got changed with passage of IRDA act in 1999. New insurance companies

have come into existence leading to open competition and hence better products for

customers.

Indian customers have become very sensitive to Coverage / Premium as well as the

Products (read Risk Solution), that is given to them. There are not ready to accept any

product, no matter even if that is coming from the market leader, should that product

is not serving the purpose. A case in point is ULIP Product / Group Life and Credit

Life in Life Insurance segment and Travel / Family Floater Health and Liability

Insurance in the Non-life segment are new age Avatar. The new products are

constantly being demanded by Indian consumers, which is putting huge pressures on

Insurance companies (Read Risk Under-writers) and Brokers to respond.

Customers are looking at Insurance for covering Pure Risk now which I have covered

in my next section. Another good reason why we are seeing quick changes in the

buying behavior of Insurance from mere Investment to risk mitigation is the cost of

Replacement of Goods (ROG) or Cost of Services (COS).

Now Indian customers are aware of insurance industry and insurance products

provided by companies. They have become more sensitive. They would not accept

any type of insurance product unless it fulfills their requirements and needs. In

historic days customers looking at insurance products as a life cover which can

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provide security against any unacceptable events, but now customers look at

insurance products as an investment as well as life cover. So todays customers wants

good return from the insurance companies. The Indian customers forms the pivot of

each companys strategy.

Investment of Indian household savings (as a % in different sector)

BANK DEPOSITS 39

CORP. BANKS 2

SHARES AND DEBENTURES 1

MUTUAL FUNDS 2

NBFCS 3

GOVT. BONDS 13

INSURANCE 13

PF/ RETIRE FUNDS 21

CURRENCY 6Source: www.avivaindia.com

Changing face of Indian insurance industry:

After the Insurance Regulatory and Development Authority Act have been passed

there has been establishment of many private insurance companies in India.

Previously there was a monopoly business for Life Insurance Corporation of India

(L.I.C.) who was the only life-insurance company for the people till 2000. L.I.C. still

holds 71.4% of the market share in 2006. But after the introduction of private life

insurance companies there is a great competition in Indian market now. Everyone istrying to capture the fresh market here and penetrate it with aggressive marketing

strategies. Today life-insurance is not only limited up to just life risk cover and

maturity period bonuses but changed to greater return from the investments. With the

introduction of the unit linked insurance policies these companies are investing the

money in different investment instruments like shares, bonds, debentures, government

and other securities. People are demanding for higher returns with the life risk cover

and private companies are giving 30-40% average growth per annum. These life-insurance companies have every kind of policies suiting every need right from

financial needs of, marriage, giving birth and rearing up a child, his education,

meeting daily financial needs of life, pension solutions after retirement. These

companies have every aspects and needs of our life covered along with the death-

benefit.

In India only 25% of the population has life insurance. So Indian life-insurance

market is the target market of all the companies who either want to extend or diversify

their business. To tap the Indian market there has been tie-ups between the major

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Indian companies with other International insurance companies to start up their

business. The government of India has set up rules that no foreign insurance company

can set up their business individually here and they have to tie up with an Indian

company and this foreign insurance company can have an investment of only 24% of

the total start-up investment.

Indian insurance industry can be featured by:

Low market penetration.

Ever growing middle class component in population.

Growth of customers interest with an increasing demand for better insurance

products.

Application of information technology for business.

Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has more than a dozen private players, each

of which are making strides in raising awareness levels, introducing innovative

products and increasing the penetration of life insurance in the vastly underinsured

country. Several of private insurers have introduced attractive products to meet the

needs of their target customers and in line with their business objectives. The success

of their effort is that they have captured over 28% of premium income in five years.

The biggest beneficiary of the competition among life insurers has been the customer.

A wide range of products, customer focused service and professional advice has

become the mainstay of the industry, and the Indian customers forms the pivot of

each companys strategy. Penetration of life insurance is beginning to cut across

socio-economic classes and attract people who have never purchased insurance

before. Life insurance is also now being regarded as a versatile financial planning

tool. Apart from the traditional term and saving insurance policies, industry has seen

the entry and growth of unit linked products. This provides market linked returns and

is among the most flexible policies available today for investment. Now products are

priced, flexible, and realistic and sustain so people in better position to understand the

risk and benefits of the product and they are accepting these innovative products. So it

is clear that the face of life insurance in India is changing, but with the changes come

a host of challenges and it is only the credible players with a long term vision and a

robust business strategy that will survive. Whatever the developments, the future and

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the opportunities in this industry will surely be exciting. The number of companies in

Insurance particularly in Life Insurance has changed drastically now the number is in

17. List of them are mentioned as below :

1. BIRLA SUNLIFE INSURANCE Prudential Life Insurance

2. TATA AIG Life Insurance

3. Max New York Life Insurance

4. AVIVA Life Insurance

5. Bharti AXA Life Insurance

6. Kotak Life Insurance

7. Reliance Life Insurance

8. SBI Life Insurance

9. HDFC Standard Life Insurance

10. Birla Sun Life Insurance

11. Sahara Life Insurance

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COMPANY PROFILE

Birla SunLife Insurance Company Ltd. is a joint venture between New York Life, a

Fortune 100 company and Max India Limited, one of India's leading multi-business

corporations. The company has positioned itself on the quality platform. In line withits vision to be the most admired life insurance company in India, it has developed a

strong corporate governance model based on the core values of excellence, honesty,

knowledge, caring, integrity and teamwork. The strategy is to establish itself as a

trusted life insurance specialist through a quality approach to business.

Birla SunLife Insuranceis the first life insurance company in India to be awarded the

IS0 9001:2000 certification.

Birla SunLife Insurancewas among the top 25 companies to work with in India,

according to 2003 Business World magazine, "Great Workplaces In India", Birla

SunLife Insurancewas ranked at the 20th position. This survey is the local version of

the "Great Places To Work" survey carried out every year in 22 countries.

It is among top five most respected private life insurance companies in India

according to a 2004 Business World survey.

Financial Strength

In line with its values of financial responsibility, Birla SunLife Insurancehas adopted

prudent financial practices to ensure safety of policyholder's funds. The Company's

paid up capital is Rs. 587 crore, which is more than the norm laid down by IRDA.

Type of Products Offered

Birla SunLife Insuranceoffers a suite of flexible products. It now has 22 life insurance

products and 8 riders that can be customised to over 400 combinations enabling

customers to choose the policy that best fits their need. The basic categories are:

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RECENT ACHIEVEMENTS

Year Awarded From Title

2011Golden Peacock Global

Awards Secretariat

Golden Peacock Award

2011

Internet Advertising

Competition (IAC)Awards

2011

Best Insurance Integrated ad campaign

(NotJobsButPassion campaign)

2011

Advertising Agencies

Association of India &

Advertising Club Bombay

Bronze - Media Abby Awards at Goa Fest 2011 as Best

Never Before use of Media

2011




Gold - Creative Abby Awards at Goa Fest 2011 as Direct

marketing Dimensional Mail

2011




Best use of Outdoor & Ambient media Awards at Goa

Fest 2011 - Direct marketing Flat Mail

2011

BBC.com-Campaign India

Digital Media Awards

2011

Gold - "financial services website" category for Birla Sun

Life Insurance - NotJobsButPassion microsite

2010APPIES 2010 - AsiaPacific Advertising &

Marketing Congress

Silver Medal & a letter of appreciation for - Wealth with

Protection Solutions campaign

201014th Annual Webby

Awards 2010

Official Nominee - BSLI Email marketing campaign

'Save Forest'

2009

Institute of Chartered

Accountants of India

(ICAI)

ICAI Awards for Excellence in Financial Reporting -

Silver in Insurance Category

Vision

To become the most admired life insurance Company in India.

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Values

This vision to become India's most admired life insurance company will be

realized through its unique set of values, which are as follows:

Knowledge

Knowledge leads to expertise; and BIRLA SUNLIFE INSURANCE expertise is in

helping people protect themselves. Perfectly combining global expertise with local

knowledge, it is India's life insurance specialist. Birla SunLife Insurancebelieves that

for knowledge to be of value it must be focused, current, tested and shared.

Caring

Birla SunLife Insuranceis redefining the life insurance paradigm by focusing on

customers first. The service process is responsive, personalized, humane and

empathetic. Every individual who represents the company is for us BIRLA SUNLIFE

INSURANCE brand champion.

Honesty

Honesty is the heart of the life insurance business. It is all about trust. Transparency,

integrity and dependability form the cornerstones of the Birla SunLife

Insuranceexperience. The company ensures that everyone who represents the brand

carries a promise : we care in word as well as deed.

Excellence

Excellence at Birla SunLife Insuranceimplies the ability to perform at a consistently

high level. Focused on the value of continuous improvement in people, processes and

the organization, the company strives for the highest standards of quality in every

aspect of its business.

Mission

Become one of the top quartile life insurance companies in India

Be a national player

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Be the brand of first choice

Be the employer of choice

Become principal of choice for agents

PRODUCTS

Individual Insurance

Whole Life Participating Policy

Whole Life Participating Policy provides an insurance cover that is guaranteed for

your entire life. This policy also builds cash value, which you can use during your

lifetime to fund any unforeseen needs either by surrendering accumulated PUAs

(explained below) or taking a loan. In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Sum Assured plus accrued bonuses

On Maturity (attaining age 100): Sum Assured plus accrued bonusesBonus: From 3rd policy year, we will declare bonuses every year

Tax benefits:

You are entitled to the following tax benefits under Income Tax Act 1961

Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every

year.

Your DD rider premiums are eligible for an additional deduction u/s 80D up

to Rs.10,000/- every year. Your claim amounts (from death, through surrenders or on maturity) are

eligible for tax exemption u/s 10(10D).

We offer you the flexibility to enhance the value of your policy by using the

following riders/options:

1. Option to Participate in Progressive Bonuses: Allows you to top up your

premiums to purchase additional Sum Assured in your existing policy. It also

generates further bonuses.

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2. Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any

of the ten diseases covered e.g. Heart Attack, Cancer, etc.

3. Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in

case of death or disability caused by an accident.

4. Term / Term R&C Riders: Offers additional Sum Assured to match your

changing needs. The R&C also allows you the freedom to buy a fresh

insurance plan later in your life.

5. Waiver of Premium (WOP) / Payor Riders: Waives your future premiums in

case you suffer total disability. The payor rider waives future premiums on

your childs policy in case you suffer total disability

6. Guaranteed Insurability Option (GIO) Rider: Allows you to buy guaranteed

additional insurance at seven different stages in your life.

Life Partner Plus

Life Partner PlusTM Plan offers you powerful triple benefits of

Money if you live i.e. maturity benefit at age 75

Money if you don't i.e. a Life Insurance coverage till age 75

Money backs i.e. a part of the Sum Assured at regular intervals to

take care of your periodic foreseen needs.

KEY BENEFITS

1. On death of life insured: Initial Sum Assured Plus Sum Assured of Paid Up

Additions through bonuses

2. On survival: Money backs @ 7.5% of the Initial Sum Assured will be paid on

each policy anniversary from age 61 to 75.

3. On maturity: 100% of Sum Assured with Sum Assured of Paid Up Additions,

if any.

4. On Surrender of Policy: Surrender value.

5. Limited Premium Payment term: You can choose to pay the premiums over 4

terms i.e. 3 years, 7 years, 10 years or 20 years.

6. Bonus: From 3rd policy year, we will declare bonuses every year.7. Tax benefits:

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You are entitled to the following tax benefits under Income Tax Act 1961:

1. Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every

year.

2. Your DD rider premiums are eligible for an additional deduction u/s 80D up to

Rs.10,000/- every year.

3. Your claim amounts (from death, on maturity, or Money Backs or through

surrenders) are eligible for tax exemption u/s 10(10D).

Life Protector Plus

Life Protector Plus provides you with a low cost insurance cover during its tenure

of 5 years. It is also convertible any time into any permanent life insurance policy

from BIRLA SUNLIFE INSURANCE, so that you are able to take advantage of

increasing your savings when your responsibilities increase viz. on marriage, or on

child birth.

KEY BENEFITS

On death of life insured: Sum Assured.

Tax benefits:

You are entitled to the following tax benefits under Income Tax Act 1961

Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every

year.

Your DD rider premiums are eligible for an additional deduction u/s 80D up to

Rs.10,000/- every year.

Your claim amount (from death) is eligible for tax exemption u/s 10(10D).

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Customize your policy to meet your specific needs:


following riders/options

Dread Disease (DD) Rider: Pays a lump sum amount in case you contract

any of the ten diseases covered e.g. Heart Attack, Cancer, etc.

Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage

in case of death or disability caused by an accident.

Life Partner PlusTM Plan

Life Partner PlusTM Plan offers you powerful triple benefits of

Money if you live i.e. maturity benefit at age 75

Money if you don't i.e. a Life Insurance coverage till age 75

Money Backs i.e. a part of the Sum Assured at regular intervals to take care of

your periodic foreseen needs.

KEY BENEFITS

1. On death of life insured: Initial Sum Assured Plus Sum Assured of Paid Up

Additions through bonuses

2. On survival: Money backs @ 7.5% of the Initial Sum Assured will be paid on

each policy anniversary from age 61 to 75.

3. On maturity: 100% of Sum Assured with Sum Assured of Paid Up

Additions, if any.

4. On Surrender of Policy: Surrender value.

5. Limited Premium Payment term: You can choose to pay the premiums over

4 terms i.e. 3 years, 7 years, 10 years or 20 years.

6. Bonus: From 3rd policy year, we will declare bonuses every year.

7. Tax benefits:


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Your premiums are eligible for deduction u/s 80C up to Rs.100,000/-

every year.

Your DD rider premiums are eligible for an additional deduction u/s

80D up to Rs.10,000/- every year. Your claim amounts (from death, on maturity, or Money Backs or

through surrenders) are eligible for tax exemption u/s 10(10D).

Customize your policy to meet your specific needs:


following riders/options:

Dread Disease (DD) Rider: Pays a lump sum amount in case you contract

any of the ten diseases covered e.g. Heart Attack, Cancer, etc.

Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage

in case of death or disability caused by an accident.

Term / Term R&C Riders: Offers additional Sum Assured to match your

changing needs. The R&C also allows you the freedom to buy a fresh

insurance plan later in your life.

Waiver of Premium (WOP) / Pay or Riders: Waives your future premiums

in case you suffer total disability. The pay or rider waives future premiums on

your childs policy in case you suffer total disability.

Group policy

Group Term Insurance

Group Term Insurance is the mainstay of our employee benefit platform. Here are

some of the key features and benefits:

Group Term Life - Key features and Benefits

Easy and convenient administration one single master policy for all

employees.

Group size of at least 25 employees.

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No upper limit on membership.

Policy is valid for one year and can be renewed annually.

Uniform or a graded cover can be provided on any basis chosen by your

subject to a maximum of three years of salary per employee.

In case of death of an employee, due to natural or accidental reasons, the entire

sum assured amount is paid to the employer.

Additional Protection is available through riders for Critical Illness,

Accidental Death Benefits, Disability and Dismemberment.

New members can join and out going members can leave the scheme at any

time with premium adjustment.

Group Term Insurance Scheme

Overview of EDLI Scheme, 1976

All establishments with at least 10 full-time permanent employees and to whom the

Employee's Provident Fund and Miscellaneous Provisions Act, 1952 applies, have a

statutory liability to subscribe to Employee's Deposit Linked Insurance Scheme

(EDLI), 1976 to provide for life insurance for all their employees. The organizationhas to make a contribution @ 0.51% of each employee's wages (Basic + Dearness

Allowance + Retaining Allowance), subject to a maximum of Rs.6,500 per month, to

the Provident Fund Authorities as part of its compliance to the Act. The death benefit

payable under this scheme is based on the provident fund account balance of the

individual member, subject to a maximum of Rs.60,000.

A solution which is simple, flexible and unique

Under Section 17 (2-A) of the Provident Fund Act, the Central Provident Fund

Commissioner may, if requested to do so by the employer, by notification in the

Official Gazette, exempt, whether prospectively or retrospectively, any establishment

from the provisions of the EDLI scheme, if he is satisfied that the employees of such

establishment, without making any separate contribution or payment of premium,

enjoy life insurance benefits more favourable than the benefits under the EDLI

scheme.

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Birla SunLife Insurance Co. Ltd offers Group Term Insurance Scheme, a unique,

simple and flexible scheme, that is a far better alternative to the Employee Deposit

Linked Insurance Scheme (EDLI) because of the benefits it offers to both the

employer and the employee. The Employees Provident Fund Organisation has

approved this scheme as an alternative to EDLI scheme.

The organization will enjoy the following advantages by subscribing to the Birla

SunLife Insurance Group Term Insurance as compared to the EDLI scheme:

The premium payable by the employer under the Birla SunLife Insurance

Group Term Insurance Scheme will be usually less than the total contribution

being paid by the employer to Regional Provident Fund Commissioner,

particularly when average age of the group is low and the employer is in a

low-risk industry.

Flexibility to opt for either a uniform flat cover for all employees or a graded

cover as per notional PF balance.

Well defined and simplified claim process will ensure quicker and hassle-free

claim settlement.

Administrative convenience for additions and deletions of members with no

elaborate paperwork.

Credit Shield is a protection cover, which ensures that the loan amount is paid back to

the lender in case of an untimely demise of the borrower.

Convenient Structuring

The plan can be conveniently structured in a way such that the entire loan amount or

the balance loan amount is paid up in case of the untimely demise of the borrower.

The premiums can also be adjusted every year according to the reducing loan balance

amount.

This plan provides total peace of mind because in case of an untimely demise of the

borrower, the family is not burdened with the loan.

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After an employee has rendered continuous service for at least five years, he/ she is

eligible for 15 of days pay for each completed year of service. The employer can also

structure a gratuity benefit that is higher than statutory requirements. The gratuity

benefit is payable on cessation of employment (either by resignation, death,

retirement or termination etc), by taking last drawn basic salary as the basis for the

calculation.

Gratuity payment is a statutory liability for an organization and tends to increase as

the salaries and tenure of employment increase annually. In case of big, developing &

growing organization, gratuity payout can work out to a substantial amount. If the

employer pays gratuity from its current revenue, it may become difficult to meet the

liability, it is therefore prudent and also beneficial that a gratuity fund is set up.

Benefits of the Group Gratuity Plan

Investment management in a conservative manner to ensure steady

appreciation in fund income.

Employees can be insured for the future service gratuity for full-anticipated

service.

Scientific funding of gratuity on actuarial valuation and hence superior

planning for gratuity payments.

Past gratuity liability contribution can be made in installments.

Contributions are exempt under income tax act.

Benefits to the members

Birla SunLife Insurance will provide statement of account every quarter.

Free Actuarial Valuation for future gratuity liability.

For a new fund Birla SunLife Insurance can assist in formation of the Trust

and its documentation.

An existing Gratuity Fund can be taken over by BIRLA SUNLIFE

INSURANCE and we will offer assistance in documentation like Deed of

variation to the original Trust Deed etc.

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Basic Guidelines for Birla SunLife Insurance Group Gratuity Scheme

1. Eligibility: All employees (members) above the age of 18 are eligible for this plan.

Existing fund approved by the Income Tax Commissioner should be administered

through Trustees under a Trust.

2. Contribution: The Trust will make the contribution to the fund. Contribution can

be made quarterly, half-yearly or yearly.

3. Surrender Fee: In case a Policyholder wants to surrender the policy, a surrender

fee is applicable. This fee is based on the realizable market value of the assets and

depending upon the duration of the association with Max New York Life.

Term Insurance Cover

Term insurance cover equal to future service gratuity

Premium for term insurance cover will be computed separately.

The insurance cover will also form part of Group Gratuity policy.

Insurance cover will be paid only on the death of the member.

Gratuity is a statutory benefit to the employees under the Payment of Gratuity Act

1972. After the employee has rendered continuous service for at least five years, he/she is eligible for 15 days pay for each completed year of service. The gratuity benefit

is payable on cessation of employment (either by resignation, death, retirement or

termination etc), by taking last drawn basic salary as the basis for the calculation.

Gratuity payment is a statutory liability for an organization and tends to increase as

the salaries and tenure of employment increase annually. In case of big, developing &

growing organization, gratuity payout can work out to a substantial amount. If the

trust pays gratuity from its current revenue, it becomes difficult to meet the liability, it

is therefore beneficial that a gratuity fund is set up for prudent financial planning.

Apart from being used as an effective tool to reward loyal employees, Gratuity can be

considered as a powerful tool to retain employees as well. This can be done by

structuring a higher gratuity benefit than the statutory requirements. Birla SunLife

Insurancehas made the Group Insurance portfolio more robust by launching the Unit

Linked Gratuity Plan.

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Max New York can now offer you two options of:

1. Non unit Linked or Traditional Group Gratuity Plan: which facilitates

systematic and steady funding of the liability

2. Unit Linked Group Gratuity Plan: which facilitates steady funding and the

opportunity of Increased returns on investment.

Benefits of the Unit Linked Group Gratuity Plan

Opportunity for growing the fund safely and prudently by managing the fund

investments properly and maximizing the returns on the investments and

thereby bringing down the costs of the funding liability in the future.

Multiple Flexible Investment options based on the risk taking ability of the

trust.

Lives cover for full-anticipated service.

Contributions are exempted from Tax.

Total Transparency in charges and the returns declared.

Complete range of services provided: Taxation, Legal, Investment .

Product Features

Eligibility

Employer-Employee Groups

Group Size of 25 members or more

Employees between age 18 and retirement age of the company

Contributions

BIRLA SUNLIFE INSURANCE will open and manage a Unit Account for the

Trustees in which units are allocated and cancelled for the purpose of paying Gratuity

The trust also pays a premium for the life insurance cover. This cover could be either

the future service liability or a uniform/graded cover

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On receiving a claim, BIRLA SUNLIFE INSURANCE will redeem the units in the

investment fund and pay the gratuity benefit

In case of death of an insured member, BIRLA SUNLIFE INSURANCE will also pay

the sum assured applicable for that member in addition to the gratuity benefit

Contributions to be made towards the Gratuity Liability by the Trust to BIRLA

SUNLIFE INSURANCE would be as per Actuarial Valuation Post AS-15

certification

Past Service Gratuity Liability payment can be made over a period of 5 years

The annual contributions can be made annually/half yearly/quarterly/monthly

Redirection

Annual contributions can be invested as per new fund break-up, not adhering to the

initial investment break-up. This gives more flexibility for better financial planning as

per specific requirements.

Charge Structure

BIRLA SUNLIFE INSURANCE unit linked Gratuity has one of the most transparent

charge structures in the market currently. The Fund Management charge is also

extremely competitive.

Fund Management Charges - The fund management charge is levied as a percentage

of value of assets and shall be appropriated by adjusting the Net Assets Value.

Switching: BIRLA SUNLIFE INSURANCE UL Group Gratuity plan offers its clients

a flexibility to switch funds from exiting fund to any other fund options, as per trust

rules. Two free switches in one policy year can be availed by the clients.

Surrender Fee: is applicable if a policyholder wants to surrender the policy. This fee is

based on the length of association with Max New York Life.

Fund options

BIRLA SUNLIFE INSURANCE Group Gratuity plan is a market linked investment

product, which offers 3 fund options to choose from.

Fund Options Fund Type Description

Asset Types Conservative Fund (%) Balanced Fund (%) Growth Fund (%)

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Govt. Securities 50-80 20-50 0-30

Corporate Bonds (Investment Grade) 0-50 20-40 0-30

Cash/Call Money Markets 0-20 0-20 0-20

Equities Nil 10-40 20-60

The BIRLA SUNLIFE INSURANCE Advantage

Fund Management Philosophy

Total Transparency in charges, returns declared and the portfolio of investments.

Flexibility in premium payments, redirection of premiums, term cover.

Superior Service

ISO certified Operations & Processes Free and diversified services: legal, investment, taxation

Dedicated Relationship Manager

Effective Transaction Processing & Superior Turnaround Times

Robust Data Management With High Confidentiality Maintained

Most Transparent charges and Low Fund Management Charges

Saving

Life Pay Money Back Plan (Participating) Policy

Life Pay Money Back Plan (Participating) Policy will keep paying you a part of the

Sum Assured at regular intervals, to take care of your periodic foreseen needs, and the

balance keeps growing to take care of your long term saving needs, as well as

provides insurance coverage till maturity. In addition this policy is also eligible for

bonuses.

KEY BENEFITS

1. On death of life insured: Sum Assured plus Sum Assured of Paid Up

Additions (without deducting any money back installments, if already paid).

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2. On maturity: Sum Assured less money backs already paid plus 10% of SA as

guaranteed addition plus accrued bonuses.

3. Bonus: From 3rd policy year, we will declare bonuses every year.

4. Tax benefits:


Your premiums are eligible for deduction u/s 80C up to Rs.100,000/-

every year.

Your DD rider premiums are eligible for an additional deduction u/s 80D

up to Rs.10,000/- every year.

Your claim amounts (from death, thorugh surrenders or on maturity) are

eligible for tax exemption u/s 10(10D).

Competitors:

ICICI Prudential Life Insurance Company ICICI Insurance has two

faces

ICICI Prudential Life Insurance Companyand ICICI Lombard General Insurance

Company Limited. ICICI PrudentialLif e Insurance is a 74:2 6 joint ven ture

between ICICI Bank India Ltd. andPrudential PLC based in UK.

Establ i shed in 2000, today ICICI Prudent ialh as 73 5 of f i ce s , 22 Ba nc

a s s u r a n c e p a r t n e r s a n d o v e r 2 . 4 l a k h a d v i s o r s . Having won public

accolade as the most trusted private life insurer in India,ICICI Prudential Life

Insurance Co Ltd brings a wide array of life insurance products to the customers.In

add it ion to these insurance pol ic ies , ICICI Prudent ia l b ring to you

easy p r em i um p ay me nt s ol ut io n s b y c he qu e o r c as h a tt h e b r a n c h e s , c h e q u e payments at the drop boxes, ECS, credit card payment

and online payment.

3.MAX NEW YORK LIFE INSURANCE:-

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Max New York Life Insurance Company Ltd. is a joint venture between Max India

Limited, one of India's reputable multi-business corporations and New York Life

International, the foreign arm of New York Life. Max New York Life Insurance has

commenced its commercial operation in April 2001. Since then, it is adopting prudent

financial practices to offer complete safety to policyholder's funds.The company

enjoys multi-channel distribution spread throughout the nation. Max New York Life

has put in place a unique hub-and-spoke model of distribution to ensure deep rural

penetration. Unexpected events hit without any pre-warning, and therefore, can

disrupt the free flow of life. Therefore, it is necessary, to be ready at all times

4.Tata AIG Life Insurance Company Limited:-

Incorporated in February, 2001 Tata AIG is the joint venture between Tata Group

multi business conglomerate and AIA- Asian unit of American International Group

(AIG), US based insurance organization. Tata Sons holds a majority stake 74% and

AIA holds 26% equity in the joint venture.

5. AVIVA INDIA LIFE INSURANCE

Aviva India is a joint venture between one of the

countrys oldest and largest groups, Dabur, and Aviva plc, the UK's largest insurance

group, whose association with India dates back to 1834.Our vision is to be amongst

Indias leading life insurers with a quality business model, focused on sustainable

growth. Itseeks to build a robust product portfolio meeting all customer lifecycle

needs related to Savings, Retirement, Investments and Protection. With a strong

sales force of over 20,000 Financial Planning Advisers (FPAs), they have initiated

and pioneered many innovative sales approaches, including the concept of Banc

assurance and Financial Health Check services. they are among the first companies to

introduce the contemporary unit-linked products. With a wide distribution network

of 140 branches and strong Banc assurance partnerships are spread across nearly

3,000 towns and cities in India.

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SWOT ANALYSIS

SWOT Analysis is the most renowned tool for audit and analysis of the overall

strategic position of the business and its environment. Its key purpose is to identify

the strategies that will create a firm specific business model that will best align an

organizations resources and capabilities to the requirements of the environment in

which the firm operates. In other words, it is the foundation for evaluating the internal

potential and limitations and the probable/likely opportunities and threats from the

external environment. It views all positive and negative factors inside and outside the

firm that affect the success. A consistent study of the environment in which the firm

operates helps in forecasting/predicting the changing trends and also helps in

including them in the decision-making process of the organization.An overview of the four factors (Strengths, Weaknesses, Opportunities and Threats) is

given below-

Strengths- Strengths are the qualities that enable us to accomplish the organizations

mission. These are the basis on which continued success can be made and

continued/sustained. Strengths can be either tangible or intangible. These are what

you are well-versed in or what you have expertise in, the traits and qualities your

employees possess (individually and as a team) and the distinct features that give your

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organization its consistency. Strengths are the beneficial aspects of the organization or

the capabilities of an organization, which includes human competencies, process

capabilities, financial resources, products and services, customer goodwill and brand

loyalty. Examples of organizational strengths are huge financial resources, broad

product line, no debt, committed employees, etc.

Weaknesses- Weaknesses are the qualities that prevent us from accomplishing our

mission and achieving our full potential. These weaknesses deteriorate influences on

the organizational success and growth. Weaknesses are the factors which do not meet

the standards we feel they should meet. Weaknesses in an organization may be

depreciating machinery, insufficient research and development facilities, narrow

product range, poor decision-making, etc. Weaknesses are controllable. They must be

minimized and eliminated. For instance - to overcome obsolete machinery, new

machinery can be purchased. Other examples of organizational weaknesses are huge

debts, high employee turnover, complex decision making process, narrow product

range, large wastage of raw materials, etc.

Opportunities- Opportunities are presented by the environment within which our

organization operates. These arise when an organization can take benefit of conditions

in its environment to plan and execute strategies that enable it to become more

profitable. Organizations can gain competitive advantage by making use of

opportunities. Organization should be careful and recognize the opportunities and

grasp them whenever they arise. Selecting the targets that will best serve the clients

while getting desired results is a difficult task. Opportunities may arise from market,

competition, industry/government and technology. Increasing demand for

telecommunications accompanied by deregulation is a great opportunity for new firms

to enter telecom sector and compete with existing firms for revenue.

Threats- Threats arise when conditions in external environment jeopardize the

reliability and profitability of the organizations business. They compound the

vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a

threat comes, the stability and survival can be at stake. Examples of threats are -

unrest among employees; ever changing technology; increasing competition leading

to excess capacity, price wars and reducing industry profits; etc.

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Organisational Structure

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OUR PEOPLE

Management Team

Mr. Jayant Dua

MD & CEO

Mr. Jayant Dua is the Managing Director and Chief Executive Officer at Birla Sun

Life Insurance. He is a Chemical Engineer from IIT Delhi and an MBA. He also holds

an Advanced Management Program (AMP) from Harvard Business School, USA. He

joined Birla Sun Life Insurance in July 2010.

Mr. Mayank BathwalCFO & Head of Institutional Sales

Mr. Amitabh VermaChief Operating Officer

Mr. Sashi KrishnanChief Investment Officer

43
http://webform_dopostbackwithoptions%28new%20webform_postbackoptions%28%22ctl00%24m%24g_f189aaf3_b4b4_4089_803e_ae56a7e338a5%24ctl00%24rptteamtypes%24ctl00%24lnkteamtype%22%2C%20%22%22%2C%20true%2C%20%22%22%2C%20%22%22%2C%20false%2C%20true%29%29/http://webform_dopostbackwithoptions%28new%20webform_postbackoptions%28%22ctl00%24m%24g_f189aaf3_b4b4_4089_803e_ae56a7e338a5%24ctl00%24rptteamtypes%24ctl00%24lnkteamtype%22%2C%20%22%22%2C%20true%2C%20%22%22%2C%20%22%22%2C%20false%2C%20true%29%29/


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Mr. Arun MalkaniChief Marketing Officer

Mr.Pramod KrishnamurthyHead Information Technology

Mr. Saurov GhoshHead Human Resources & Training

Mr. Lalit VermaniHead Compliance, Risk, Legal & Audit

Mr. Vikas Seth

Head of Sales DSF

Mr. Anil SinghChief Actuarial Officer

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MARKETING STRATEGY OF BIRLA SUNLIFE INSURANCE

Marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve asustainable competitive advantage. A marketing strategy should be centered around

the key concept that customer satisfaction is the main goal. Marketing strategy is a

method of focusing an organization's energies and resources on a course of action

which can lead to increased sales and dominance of a targeted market niche. A

marketing strategy combines product development, promotion, distribution, pricing,

relationship management and other elements; identifies the firm's marketing goals,

and explains how they will be achieved, ideally within a stated timeframe. Marketing

strategy determines the choice of target market segments, positioning, marketing mix,

and allocation of resources. It is most effective when it is an integral component of

overall firm strategy, defining how the organization will successfully engage

customers, prospects, and competitors in the market arena. Corporate strategies,

corporate missions, and corporate goals. As the customer constitutes the source of a

company's revenue, marketing strategy is closely linked with sales. A key component

of marketing strategy is often to keep marketing in line with a company's overarching

mission statement

All four elements of the Marketing mix are closely related in formulating the

Marketing strategy. Marketing planning involves establishing objectives for

marketing activity, determining and scheduling the steps necessary to achieve the

objectives, and then allocating the necessary resources. Marketing strategy includes

the activities of finding a competitive advantage, planning for the companys growth,

analyzing the companys portfolio and allocating the companys resources.

Marketing control involves a careful monitoring of the results of the Marketing plan

to ensure that the plan is achieving the objectives that were set and that it is cost-

effective. Facts of Marketing These are diverse facts of Marketing, but the tasks of

Marketing remain the same: to understand the customer, know who is involved in

making a purchase decision, and then develop a Marketing mix- product, price,

distribution system, and communication- that will satisfy those customers.

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MARKETING STRATEGY OPT BY BIRLA SUNLIFE INSURANCE

Direct marketing addresses some of the biggest challenges in marketing a business -

lead generation, converting those leads into high quality customers, and then

systematically growing customer profitability. Direct marketing helps the company to

get through the marketing noise, and delivers a high return on investment for your

marketing spend.

With prospects being presented with so many choices, they seldom, if ever, buy at the

first contact. In fact, it can take anything from 9 to 15 contacts before they have

sufficient trust in you to finally buy your product.

Systematic Direct Marketing is that set of processes - a marketing strategy based on

direct marketing methods which will deliver an immediate and sustainable sales

improvement.

By improvements we mean:

Your lead generation costs will drop,

Converting leads into sales will not be due to profit-killing price discounts,

and

Your quality clients will form enduring relationships - providing you with

profitable repeat sales

The Highly Effective Cycle of Systematic Direct Marketing

In order to attract, retain and nurture a list of highly profitable customers, the

company needs to craft direct marketing strategy around a number of marketing

activities that can start in a fairly simple way, but over time develop into a fairly

sophisticated set of direct marketing processes leading to prime aim of expanding.

If you cycle through the following direct marketing activities you will experience an

unprecedented improvement in your businesss results:

Each direct marketing cycle will create a set of clients who can start providing the

company with referrals. These lowest cost prospects will supplement the prospects

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that you attract through your normal ongoing lead generation techniques, yielding an

ever-increasing prospect base for you to convert into customers.

Services marketing is marketing based on relationship and value. It may be used to

market a service or a product. Marketing a service-base business is different from

marketing a goods-base business.

There are several major differences, including:

1. The buyer purchases are intangible

2. The service may be based on the reputation of a single person

3. It's more difficult to compare the quality of similar services

4. The buyer cannot return the service

Service Marketing has been relatively gaining ground in the overall spectrum of

educational marketing as developed economies move farther away from industrial

importance to service oriented economies. What is marketing? Marketing is the flow

of goods and services from the producer to consumer. It is based on relationship and

value. In common parlance it is the distribution and sale of goods and services.

Marketing can be differentiated as:

Marketing of products

Marketing of services.

Marketing includes the services of all those indulged may it be then the wholesaler

retailer, Warehouse keeper, transport etc. In this modern age of competition marketing

of a product or service plays a key role. It is estimated that almost 50% of the price

paid for a commodity goes to the marketing of the product in US. Marketing is now

said to be a term which has no particular definition as the definitions change every

day.

"Managing the evidence" refers to the act of informing customers that the service

encounter has been performed successfully. It is best done in subtle ways like

providing examples or descriptions of good and poor service that can be used as abasis of comparison. The underlying rationale is that a customer might not appreciate

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the full worth of the service if they do not have a good benchmark for comparisons.

However, it is worth remembering that many of the concepts, as well as many of the

specific techniques, will work equally well whether they are directed at products or

services. In particular, developing a marketing strategy is much the same for products

and services, in that it involves selecting target markets and formulating a marketing

mix. Thus, Theodore Levitt suggested that "instead of talking of 'goods' and of

'services', it is better to talk of 'tangibles' and 'intangibles'". Levitt also went on to

suggest that marketing a physical product is often more concerned with intangible

aspects (frequently the `product service' elements of the total package) than with its

physical . sales after service is very important in service sector. properties. Charles

Revson made a famous comment regarding the business of Revlon Inc.: `In the

factory we make cosmetics. In the store we sell hope.' Arguably, service industry

marketing merely approaches the problems from the opposite end of the same

spectrum,

INTERNAL INFLUENCES

You can start your examination of the influence on consumer purchase decisions by

first looking inside yourselves to see which are the most important internal factors

that affect how you make choices.

Perceptual Filter

Perception is how we see ourselves and the world we live in. However, what ends up

being stored inside us doesnt always get there in a direct manner. Often our mental

makeup results from information that has been consciously or unconsciously filtered

as we experience it, a process we refer to as a perceptual filter. To us this is our

reality, though it does not mean it is an accurate reflection on what is real. Thus,

perception is the way we filter stimuli (e.g., someone talking to us, reading a

newspaper story) and then make sense out of it.

Perception has several steps.

o Exposure

Sensing a stimuli (e.g. seeing an ad)

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o Attention

An effort to recognize the nature of a stimuli (e.g. recognizing it is an ad)

o Awareness

Assigning meaning to a stimuli (e.g., humorous ad for particular product)

o Retention

o Adding the meaning to ones internal makeup (i.e., product has fun

ads)

How these steps are eventually carried out depends on a persons approach to

learning. By learning we mean how someone changes what they know, which in turn

may affect how they act. There are many theories of learning, a discussion of which

is beyond the scope of this tutorial, however, suffice to say that people are likely to

learn in different ways. For instance, one person may be able to focus very strongly

on a certain advertisement and be able to retain the information after being exposed

only one time while another person may need to be exposed to the same

advertisement many times before he/she even recognizes what it is. Consumers are

also more likely to retain information if a person has a strong interest in the stimuli. If

a person is in need of new car they are more likely to pay attention to a new

advertisement for a car while someone who does not need a car may need to see the

advertisement many times before they recognize the brand of automobile.

Marketing Implication:

Marketers spend large sums of money in an attempt to get customers to have a

positive impression of their products. But clearly the existence of a perceptual filter

suggests that getting to this stage is not easy. Exposing consumers to a product can be

very challenging considering the amount of competing product messages (ads) that

are also trying to accomplish the same objective (i.e., advertising clutter). So

marketers must be creative and use various means to deliver their message Once the

message reaches consumer it must be interesting enough to capture the their attention

(e.g., talk about the products benefits). But attending to the message is not enough.

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For marketers the most critical step is the one that occurs with awareness. Here

marketers must continually monitor and respond if their message becomes distorted in

ways that will negatively shape its meaning. This can often happen due in part to

competitive activity (e.g., comparison advertisements). Finally, getting the consumer

to give positive meaning to the message they have retained requires the marketer

make sure that consumers accurately interpret the facts about the product.

Knowledge

Knowledge is the sum of all information known by a person. It is the facts of the

world, as he/she knows it and the depth of knowledge is a function of the breadth of

worldly experiences and the strength of an individuals long-term memory.

Obviously what exists as knowledge to an individual depends on how an individuals

perceptual filter makes sense of the information it is exposed to.

Marketing Implications:

Marketers may conduct research that will gauge consumers level of knowledge

regarding their product. As we will see below, it is likely that other factors

influencing consumer behavior are in large part shaped by what is known about a

product. Thus, developing methods (e.g., incentives) to encourage consumers to

accept more information (or correct information) may affect other influencing factors.

Attitude

In simple terms attitude refers to what a person feels or believes about something.

Additionally, attitude may be reflected in how an individual acts based on his or her

beliefs. Once formed, attitudes can be very difficult to change. Thus, if a consumer

has a negative attitude toward a particular issue it will take considerable effort to

change what they believe to be true.


Marketers facing consumers who have a negative attitude toward their product must

work to identify the key issues shaping a consumers attitude then adjust marketing

decisions (e.g., advertising) in an effort to change the attitude. For companies

competing against strong rivals to whom loyal consumers exhibit a positive attitude,

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an important strategy is to work to see why consumers feel positive toward the

competitor and then try to meet or beat the competitor on these issues. Alternatively,

a Birla Sunlife Insurance can try to locate customers who feel negatively toward the

competitor and then increase awareness among this group.

Personality

An individuals personality relates to perceived personal characteristics that are

consistently exhibited, especially when one acts in the presence of others. In most,

but not all, cases the behaviors one projects in a situation is similar to the behaviors a

person exhibits in another situation. In this way personality is the sum of sensory

experiences others get from experiencing a person (i.e., how one talks, reacts). While

ones personality is often interpreted by those we interact with, the person has their

own vision of their personality, called self-concept, which may or may not be the

same has how others view us.


For marketers it is important to know that consumers make purchase decisions to

support their self-concept. Using research techniques to identify how customers view

themselves may give marketers insight into products and promotion options that are

not readily apparent. For example, when examining consumers a marketer may

initially build marketing strategy around more obvious clues to consumption

behavior, such as consumers demographic indicators (e.g., age, occupation, income).

However, in-depth research may yield information that shows consumers are

purchasing products to fulfil self-concept objectives that have little to do with the

demographic category they fall into (e.g., senior citizen may be making purchases that

make them feel younger). Appealing to the consumers self concept needs could

expand the market to which the product is targeted.

Lifestyle

This influencing factor relates to the way we live through the activities we engage in

and interests we express. In simple terms it is what we value out of life. Lifestyle is

often determined by how we spend our time and money.

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VALUES

"Coming into your own", performing as a Leader to be really effective and successful

by acting and making decisions independently to get results.

It's all about People, MetLife's key resource. MetLife will succeed because we are

winning from within.

Functioning productively in teams towards a common purpose; realising the collective

power of diverse work-groups.

Operating with an intense dedication to managing monetary resources for strong

business results.

Conducting all business endeavors with truth, sincerity and fairness.

Continuously creating and introducing new and original ideas and ways of doing

things.

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PREMIUM PAYMENT OPTIONS

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CHAPTER-2

RESEARCH METHODOLOGY

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OBJECTIVES OF THE STUDY

1. To examine the psychographics of insurance customers.

2. To probe the buying behaviour of insurance customers.

3. To find people expectations or satisfaction regarding the insurance.

4. To judge the awareness level of insurance Industry.

Types of research

The basic type of research is:

Descriptive research

It includes surveys and fact-finding enquiries of various kinds

Exploratory research

It is that research which has not been done earlier in fact is based on the new

generalization of the facts. It includes the findings of new enquiries.

EXPLORATORY AND DESCRIPTIVE

This research is based on both exploratory and descriptive research.

Data collection: The data for the study was mainly secondary. Mainly data wascollected from companys data bank and general data was collected from internet.

However some data was collected with interaction with different people

The study has exploited both the primary and secondary sources of information. The

primary source comprised of questionnaires to elicit pertinent responses from the

respondents.

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A research design is the arrangement of condition for collection and analysis

of data in a manner that to, combine relevance to research purpose with

economy in procedure.

Research design is conceptual structure within which research is conducted.

It constitutes the blue print of collection, measurement and analysis of

date. Research design is needed because it facilitates the smooth

sailing of various research operations, thereby making research as

efficient as possible yielding maximum information with minimum

time, effort and money. Research design stands for advance planning of

methods to be used for collecting relevant data and techniques to be

used in the analysis .the design helps researcher to organize his ideas

whereby it will be possible for him to look for flaws and inadequacies.

Following questions have to be asked in research design:

1. What is the study about?

2. Why is the study being made?

3. Where will the study be vehcileried on?

4. What type of data is required?

5. Where can data be found?

6. What periods of time will the study includes?

7. What will be the sample design?

8. What technique of data collection ill be used?

RESEARCH DESIGN

Sources of data:

1. Primary data:-

This type of data refers to the information received first hand by the researcher for

specific purpose of the study. Such data are original in character. In my study the

primary data used will be personal interview and personal observation.

2.Secondary data:-

This data is one which have already been collected by others. Such data is mostlycollected from books and periodicals, media and others. In this study the sources of

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secondary data are mainly the companys policy manual, annual reports of Birla Sun

Life Insurance, magazines & journals and certain websites.

The major aim of the project was to analyze the strategies of shriram group

and to study the consumer-buying behaviour for small vehicle

customers.

For the first part secondary data was collected from various sources that included

website of shriram and trade journal that were collected from shriram Delhi office.

SAMLING TECHNIQUE:For the survey a sample size of 30 employees was taken. The questionnaire was

designed in such manner that it is self explanatory, and the data thus collected has

been very comprehensive one. The another source of data is the various articles, data

reports and the records of the company. After going through the both data and

matching the provided figures, we analyzed it. Then a task of tabulating the whole

data, editing the whole data and finally analyzing the data was done to come out with

certain conclusion. The questionnaire consisted of 10 questions regarding the

operational process and knowledge of BIRLA SUNLIFE INSURANCE.

SAMPLE SIZE : 20

METHOD OF DATA COLLECTION: QUESSIONAIRE

LIMITATIONSLIMITATIONS

1. The secondary data collected might consist of manipulations, which might

have given bias in the result.

2. The lack of experience i

Documents

Birla Sunlife Insuranse (Finance)