a project on sbi life insurance

7/30/2019 A Project on SBI Life Insurance

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INDUSTRY PROFILE

INTRODUCTION TO THE INDUSTRY

Introduction

The insurance sector was opened up in the year 1999 facilitating the entry of

private players into the industry. With an annual growth rate of 24.31

percent and the largest number of life insurance policies in force, thepotential of the Indian insurance industry is huge. The year 1999 saw a

revolution in the Indian insurance sector, as major structural changes took

place with the ending of Government monopoly and the passage of the

Insurance Regulatory and Development Authority (IRDA) Bill, lifting entry

restrictions for private players and allowing foreign players to enter the

market with some limits on direct foreign ownership.

According to the CSO, the insurance and banking services contribution to

the countrys GDP is 7.1 percent out of which the gross premium collection

forms a significant part. Life insurance penetration in India was less than 1

percent till 1990-91. During the 90s, it was between 1 and 2 percent and

from 2001 it was over 2 percent. In 2003-04 it was 2.4 percent. In 2007-08

it was 14percent.

The impetus for increase is due to the active role played by IRDA in

licensing private players and taking positive steps in increasing the

insurance awareness among the people. Besides, the insurance companies

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in general and private insurance companies in particular, are reaching out

to untapped potential in rural areas with aggressive campaigns.

Innovative products, smart marketing, and aggressive distribution have

enabled fledgling private insurance companies to sign up Indian customers

faster than anyone expected. Life insurance is viewed as a tax saving

device. People are now turning to the private sector for providing them with

new products and greater variety for their choice. The improvement in FDI

flows reflected the impact of recent initiatives aimed at creating an

enabling environment for FDI and for encouraging infusion of new

technologies and management practices. The Governments proposal to

increase the FDI cap in the insurance sector from the present 26 percent to

49 percent has raised expectations among the international insurance

companies.

Definition

Insurance is a contract in which sum of money is paid to the assured in

consideration of insurers incurring risk of paying a large sum upon a given

contingency. --- Justice Tindall

Insurance is a contract by which one party for a compensation called in the

premium assumes particular risks of the other party and promises to pay to

him or his nominee a certain sum of money on a specified contingency.

---

E.W.Fitterson

Insurance may be described as social device whereby a large group of

individuals, through a system of equitable contribution, may reduce certain

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measurable risk of economic loss common to all members of the group.

--Encyclopedia Britannica

The above definitions clearly shows that insurance is a cooperative device

to spread the loss caused by a particular risk over a member of persons who

are exposed to it and who agree to insure themselves against risk. Insurance

does not eliminate risk but only reduces the financial burden, which may be

very heavy.

Evolution of Insurance

In the days of yore insurance was in its crude form and was cooperative and

voluntary in nature. When, where and how it originated is still a matter of

research in one way or the other was prevalent in olden days. We can trace

its history from the evolution society from hunting stage to the modern

industrial age. A word YAGCHHEM occurs in the worlds most ancient

Hindu Scripture Rig Veda.

The word YAGCHHEM means insurance. It clearly indicated that about

four thousand years ago insurance was prevalent in its crude form. It was

cooperative and voluntary in nature. People formed different groups of

organizations to share the loss among themselves incase of a particular risk.

Each member contributed some amount to a common fund to meet the

unforeseen losses. Sometimes they also contributed equally to compensate

person as and when he suffered a loss. Traces of insurance in the ancient

world are also found in the form of marino trade loans or carriers contracts

which included an element of insurance.

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Evidence is on records that arrangements embodying the idea of insurance

were made in Babylonia and India at quite an early period. References were

made to the concept of insurance in Manus code Manu Smrity. It was

akin to Yagakshemo of Rigveda in which the well being and security of

the community was aimed at. However, there is no evidence that insurance

in its present farm was practiced prior to twelfth century.

Nature of Insurance

The insurance has the following characteristics which are observed in cases

of life, marine, fire and general insurance.

1. Sharing of risks: Insurance is a cooperative device to share thefinancial losses which might befall on an individual or his facility on

the occurrence of specified event such as sudden death of the bread

winner, marine perils in marine insurance, fire in the fire insurance

and theft insurance etc. in the case of general insurance.

2. Cooperative device: A large number of persons agree to share the loss

arising sue to a particular risk. Thus, insurance is a cooperative

device.

3. Value of risk: The risk is evaluated before insuring to charge the

amount of share called premium.

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4. Payment made at contingency: The payment is made at a certain

contingency insured. The Contingency may be death, fire, marine

perils etc.

5. Amount of payment: The amount of payment depends upon policy

insured.

Functions of Insurance

A) Primary Functions-

1) Insurance provides certainty: Insurance provides certainty of

payments at the uncertainty of losses. The element of

uncertainty is reduced by better planning and administration.

2) Insurance provides protection: The risk will occur or not, when

will occur and how much loss will be there. There are

uncertainties of happening of time and amount of losses. The

main function of the insurance is to provide protection against

the losses.

3) Risk sharing: Risk is uncertain and therefore, the loss arising

from the risk is also uncertain. All business concern faces the

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problem of the risk and if the concern is big enough the

handling of risk becomes a specialized function. Insurance, as

a device is the outcome of the existence of various risks in our

day to day life. It spreads the whole losses over a large number

of persons who are exposed by a particular risk.

B) Secondary Functions-

1) Prevention of loss: Prevention is always better than cure.

Prevention is by far the best solution to the problem of risk. It

is more effective and cheapest method to avoid the unfortunate

consequence. But sometimes prevention is not always possible

and Effective.

2) Provides capital: It provides the capital to the society. For plan

development of country there is a great need for huge amount

of capital. Now days, the insurance companies are rendering

positive help in the development of trade, commerce and

industry of the country.

3) Improves efficiency: Achievement of goals, it improves not

only his efficiency of the masses is also advanced. The

insurance eliminates worries and miseries of losses as deathand destruction of property care free person can devote his

energies for better.

4) Ensures the welfare of society: Insurance is a saga of service

and security to thee society. Security of the life and property

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given by insurance bring peace of mind to the insured. The

investment in LIC in welfare schemes like electricity, housing,

water supply, agro industry estates are able to solve many

problems in India.

5) Helps in economic progress: Insurance provides an initiative to

work hard for the betterment of the masses. Life insurance

involves the element of saving investment through small

savings. And which has been growing in recent years at an

annual rate of about Rs. 400 crs. Life insurance is not a mere

business organization; it has nobler welfare responsibilities in

the development of the economy.

Insurance Industry

Introduction

With an annual growth rate of 15-20% and the largest number of life

insurance policies in force, the potential of the Indian insurance industry is

huge. Total value of the Indian insurance market (2004-05) is estimated at

Rs.450 billion (US$10 billion). According to government sources, the

insurance and banking services contribution to the country's gross

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domestic product (GDP) is 7% out of which the gross premium collection

forms a significant part.

The funds available with the state-owned Life Insurance Corporation (LIC)

for investments are 8% of GDP. Till date, only 20% of the total insurable

population of India is covered under various life insurance schemes, the

penetration rates of health and other non-life insurances in India is also

well below the international level. These facts indicate the of immense

growth potential of the insurance sector.

The year 1999 saw a revolution in the Indian insurance sector, as major

structural changes took place with the ending of government monopoly and

the passage of the Insurance Regulatory and Development Authority

(IRDA) Bill, lifting all entry restrictions for private players and allowing

foreign players to enter the market with some limits on direct foreign

ownership.

Though, the existing rule says that a foreign partner can hold 26% equity in

an insurance company, a proposal to increase this limit to 49% is pending

with the government. Since opening up of the insurance sector in 1999,

foreign investments of Rs. 8.7 billion have poured into the Indian market

and 21 private companies have been granted licenses.

Innovative products, smart marketing, and aggressive distribution have

enabled fledgling private insurance companies to sign up Indian customers

faster than anyone expected. Indians, who had always seen life insurance as

a tax saving device, are now suddenly turning to the private sector and

snapping up the new innovative products on offer.

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The life insurance industry in India grew by an impressive 36%, with

premium income from new business at Rs. 253.43 billion during the fiscal

year 2004-2005, braving stiff competition from private insurers. RNCOSs

report, Indian Insurance Industry: New Avenues for Growth 2012, finds

that the market share of the state behemoth, LIC, has clocked 21.87%

growth in business at Rs.197.86 billion by selling 2.4 billion new policies in

2004-05. But this was still not enough to arrest the fall in its market share,

as private players grew by 129% to mop up Rs. 55.57 billion in 2004-05

from Rs. 24.29 billion in 2003-04.

Though the total volume of LIC's business increased in the last fiscal year

(2004-2005) compared to the previous one, its market share came down

from 87.04 to 78.07%. The 14 private insurers increased their market share

from about 13% to about 22% in a year's time. The figures for the first two

months of the fiscal year 2005-06 also speak of the growing share of the

private insurers. The share of LIC for this period has further come down to

75 percent, while the private players have grabbed over 24 percent.

There are presently 12 general insurance companies with four public sector

companies and eight private insurers. According to estimates, private

insurance companies collectively have a 10% share of the non-life

insurance market.

Though the focus of this market research report is on the potential growth

on the Indian Insurance Sector, it also talks about the market size, market

segmentation, and key developments in the market after 1999. The report

gives an instant overview of the Indian non-life insurance market, and

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covers fire, marine, and other non-life insurance. The data is supplied in

both graphical and tabular format for ease of interpretation and analysis.

This report also provides company profiles of the major private insurance

companies.

Report Highlights

Gains of liberalization in Indian insurance sector Indian insurance market segmentation by products

Size of the market and market share of life insurers, in INR (crore)

Market share of non-life insurers

Forecast of life insurance growth up to 2012

Forecast of non-life insurance growth up to 2012

Market revenue of both public and private insurers

Policies and measures taken by IRDA to develop the insurance

market

Research and development activities

Regulation of insurance and reinsurance companies

Major challenges that Indian insurance sector is facing

Profiles of the major players

LIFE INSURANCE

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Definition

The life insurance contract embodies an agreement in which broadly

stated, the insurer undertakes to pay a stipulated sum upon the death of the

insurer to a designated beneficiary.

--- J.H.MAGEE

Life insurance contract may be defined whereby the insurer, in

consideration of premium paid either installment, undertakes to pay anannuity on the death of the insured of a certain number of years.

--- R.S.SHARMA

A contract of life assurance is that in which one party agrees to pay a given

sum on the happening of a particular event contingent upon the duration of

human life in consideration of immediate payment of a smaller sum by

another.

--- BUNYONS LAW

Advantages of life insurance

1. It is superior to an ordinary saving plan: this is so because unlike

other saving plans, it offers full protection against risk of death.

2. Insurance encourages and enforces thrift : many people may not have

the will power to continue a long term saving plan which they may

formulate regular payments in face of money other uses to which

their limited income could be put.

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3. Easy installments and protections against creditors: the proceeds of a

life insurance policy can be protected against the claims of the

creditors of life assured by affection a valid assignment of the

policies.

4. Tax relief: the income tax act exempts from tax that part of an

individuals income which is devoted to payment of life insurance

premium.

5. Estate duty: life insurance is the most practicable way to ensure

definite payment on ones death without having resort to conversion

of realizable asset at a loss.

Why Life Insurance?

Life Insurance has come a long way from the earlier days when it was

originally conceived as a risk covering medium for short periods of time,

covering temporary risk situations, such as sea voyages. As life insurance

became more established, it was realized what a useful tool it was for a

number of situations, including

1. Temporary needs / threats: The original purpose of life insurance

remains an important element, namely providing for replacement ofincome on death etc.

2. Regular Savings: Providing for one's family and oneself, as a medium

to long term exercise (through a series of regular payment of

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premiums). This has become more relevant in recent times as people

seek financial independence for their family.

3. Investment: Put simply, the building up of savings while safeguarding

it from the ravages of inflation. Unlike regular saving products,

investment products are traditionally lump sum investments, where

the individual makes a one off payment.

4. Retirement: Provision for later years becomes increasingly necessary,

especially in a changing cultural and social environment. One can

buy a suitable insurance policy, which will provide periodical

payments in one's old age.

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Let us take an example to understand the need for insurance:

Mr. Pranay is 45 years of age and self-employed. His wife Nandini, who is a

housewife, looks after their two children aged 3 and 7 years.

They stay in a rented accommodation, where the rent is 15,000 rupees per

month. Mr. Atul has taken up a loan of Rs. 2 lakh. His monthly earnings on

average are 40,000 rupees. Mr. Atul passes away in an unfortunate road

accident. What are some of the financial implications of his death on his

family? There may be several financial implications on his family. Some of

these are:

a) The monthly income, previously provided by Mr. Atul would stop.

b) His wife and children may have to seek financial assistance from other

relatives.

c) His wife may not have enough money to pay back the loan of Rs. 2 lakhs.

d) The family may have to move into a cheaper accommodation.

e) His widow may have to take up work to earn money.

f) The education of his children may suffer.

This simple example illustrates the impact premature death can have on a

family, where the main earner has no life cover. Had Mr. Atul taken life

cover, his family would not have faced such hardships in the event of his

unfortunate death. A simple life insurance policy could have provided Mr.

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Atul's family with a lump sum that could have been invested to provide an

income equal to all or part of his income.

In simple words, insurance protects against untimely losses. Insurance has

been found useful in the lives of persons both in the short term and long

term. Short term needs like sudden medical costs and long term needs like

marriage expenses etc can be met with using life insurance.

Life Insurance in India

With such a large population and the untapped market area of this

population Insurance happens to be a very big opportunity in India. Today it

stands as a business growing at the rate of 15-20 per cent annually. Together

with banking services, it adds about 7 percent to the countrys GDP .In spite

of all this growth the statistics of the penetration of the insurance in the

country is very poor. Nearly 80% of Indian populations are without Life

insurance cover and the Health insurance.

This is an indicator that growth potential for the insurance sector is

immense in India. It was due to this immense growth that the regulations

were introduced in the insurance sector and in continuation Malhotra

Committee was constituted by the government in 1993 to examine the

various aspects of the industry. The key element of the reform process was

Participation of overseas insurance companies with 26% capital. Creating a

more efficient and competitive financial system suitable for the

requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many sea changes .The

competition LIC started facing from these companies were threatening to

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the existence of LIC. Since the liberalization of the industry the insurance

industry has never looked back and today stand as the one of the most

competitive and exploring industry in India. The entry of the private players

and the increased use of the new distribution are in the limelight today. The

use of new distribution techniques and the IT tools has increased the scope

of the industry in the longer run.

History

The origin of insurance is very old .The time when we were not even born;

man has sought some sort of protection from the unpredictable calamities of

the nature. The basic urge in man to secure himself against any form of risk

and uncertainty led to the origin of insurance. The insurance came to India

from UK; with the establishment of the Oriental Life insurance Corporation

in 1818.

The Indian life insurance company act 1912 was the first statutory body that

started to regulate the life insurance business in India. By 1956 about 154

Indian, 16 foreign and 75 provident firms were been established in India.

Then the central government took over these companies and as a result the

LIC was formed. Since then LIC has worked towards spreading lifeinsurance and building a wide network across the length and the breath of

the country. After the liberalization the entrance of foreign players has

added to the competition in the market.

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The General insurance business in India, on the other hand, can trace its

roots to the Triton Insurance Company Ltd., the first general insurance

company established in the year 1850 in Calcutta by the British. In 1957

General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business

practices. In 1972 The General Insurance Business (Nationalization) Act,

1972 nationalized the general insurance business in India with effect from

1st January 1973.

It was after this that 107 insurers amalgamated and grouped into four

companies viz. the National Insurance Company Ltd., the New India

Assurance Company Ltd., the Oriental Insurance Company Ltd. and the

United India Insurance Company Ltd. GIC incorporated as a company.

Present Scenario

The government of India liberalized the insurance sector in March 2000

with the passage of the Insurance Regulatory and Development Authority

(IRDA) bill. Policies come under the purview of the government appointed

Tariff Agenty Committee. The opening up of the sector is likely to lead to

greater spread and deepening of insurance in India and this may also

restructuring and revitalizing of the public sector companies. A host of

private insurance companies operating in both life and non life segments

have started selling their insurance policies since 2001.

Non life insurance market, In December 2000, the GIC subsidiaries were

restructured as independent insurance companies. At the same time, GIC

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was converted into national re-insurer. In July2002, Parliament passed a

bill, delinking the four subsidiaries from GIC.

Presently there are 12 general insurance companies with 4 public sector

companies and 8 private insurers. Although the public sector companies still

dominate the general insurance business, the private insurance companies

have a 10 percent share of the market, up from 4 percent in 2001. In the

first half of 2002, the private companies booked premium worth 6.34

billion. Most of the new entrants reported losses in first yr of their

operation in 2001.

Insurance costs constitute roughly around 1.2 2 % of the total project

costs. Under the existing norms, insurance premium payments are treated

as part of the fixed costs. Consequently they are treated as pass through

costs for tariff calculations. For projects costing up to Rs.1 billion, the tariff

Agent committee sets the premium rates, for projects between 1 billion and

15 billion, the rates are set in keeping with committees guidelines; and

projects above 15 billion are subjected to reinsurance pricing. It is the last

segment that has a number of additional products and competitive pricing.

Insurance, like project finance, is extended by a consortium. Normally one

insurer takes the lead, shouldering about 40-50% of the risk and receiving

proportionate percentage of the premium.

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INSURANCE REGULATORY DEVELOPMENT AUTHORITY(IRDA):

In 1999, the Insurance Regulatory and Development Authority (IRDA) were

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

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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 Section114A 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.

ROLE OF IRDA:

Protecting the interests of policyholders.

Establishing guidelines for the operations of insurers and brokers.

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.

COMPANY PROFILE

OUR COMMITMENT

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U S Roy (MD & CEO)

Life SBI Insurance Co. Ltd.

Our company, with its unique brand and highly committed workforce, is

determined to increase life insurance penetration and offer need-based

solutions our citizens, enabling them to live life to the fullest. I invite you to

explore the several possibilities available for being an integral part of this

dream, of one of the fastest growing life insurance companies in the

country. For customers, SBI Life a company of State Bank Group which is

synonymous with trust for more than 200 years presents security for you

and your loved ones through its range of innovative life insurance

solutions. With the backing of the largest distribution network in the

country of over 14,500 bank branches of State Bank and nearly 200 full-

service offices of the company, you are always close to your trusted life

insurer.

For prospective business partners, by associating with one of the largest

financial brands in the country, SBI Life gives you a lucrative business

opportunity to profit from serving millions of Indians. In terms of

career opportunities, SBI Life presents its most valuable asset, its

employees, work environment which is a blend of security and excellence.

We seek opportunities to give qualified minority suppliers a chance

to succeed. It benefits SBI LIFE and our communities.

U S Roy

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MD & CEO

SBI LIFE Insurance Co. Ltd.

INTRODUCTION TO THE ORGANIZATION

SBI Life Insurance

SBI Life Insurance Company Limited is a joint venture between the State

Bank of India and BNP Paribas Assurance. SBI Life Insurance is registeredwith an authorized capital of Rs 2000 crores and a Paid-up capital of Rs

1000 Crores. SBI owns 74% of the total capital and BNP Paribas Assurance

the remaining 26%.

State Bank of India enjoys the largest banking franchise in India. Along

with its 7 Associate Banks, SBI Group has the unrivalled strength of over

14,500 branches across the country, arguably the largest in the world.

BNP Paribas Assurance is the life and property & casualty insurance unit of

BNP Paribas - Euro Zones leading Bank. BNP Paribas, part of the worlds

top 6 group of banks by market value and a European leader in global

banking and financial services, is one of the oldest foreign banks with a

presence in India dating back to 1860. BNP Paribas Assurance is the fourth

largest life insurance company in France, and a worldwide leader in

Creditor insurance products offering protection to over 50 million clients.

BNP Paribas Assurance operates in 41 countries mainly through the banc

assurance and partnership model.

SBI Life has a unique multi-distribution model encompassing Banc

assurance, Agency and Group Corporate. SBI Life extensively leverages the

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SBI Group as a platform for cross-selling insurance products along with its

numerous banking product packages such as housing loans and personal

loans. SBI access to over 100 million accounts across the country provides a

vibrant base for insurance penetration across every region and economic

strata in the country ensuring true financial inclusion.

SBI Life extensively leverages the State Bank Group relationship as a

platform for cross-selling insurance products along with its numerous

banking product packages such as housing loans and personal loans.

Mission

To emerge as the leading company offering a comprehensive range of life

insurance and pension products at competitive prices, ensuring high

standards of customer satisfaction and world class operating efficiency, and

become a model life insurance company in India in the post liberalization

period.

Values

Trustworthiness

Ambition

Innovation

Dynamism

Excellence

Key Milestones

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A) Financial Year 08-09:

Bagged the coveted personal finance award-Outlook Money

NDTV Profit best Life Insurer 2008.

Ranked among global top three in terms of number of Million

Dollar Round Table (MDRT) members.

CRISIL has reaffirmed its highest financial rating AAA/Stable

to SBI Life. In 2007 SBI Life became the first life insurer in

India to receive this rating from CRISIL, countrys leading

rating agency.

Recently ICRA, has assigned iAAA rating indicating highest

claims paying ability to SBI Life Insurance.

Retains ISO 9001:2000 certificate for superior claim settlement

process.

B) Financial Year 07-08:

Rated as the The Most Trusted Private Life Insurer according

to a survey conducted by Brand Equity in association with AC

Nielsen ORG-MARG and the Economic Times Intelligence

Bureau.

Became first life insurer in India to receive the highest

financial rating AAA from CRISIL, the countrys best known

rating agency in 2007.

Ranked amongst global top five life insurance companies in the

number of MDRT members.

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Forayed into micro insurance with the launch of Grameen

Shakti in Bhubaneshwar, Orissa for the economically

underprivileged sections of society.

Received ISO 9001: 2000 certification for superior claim

settlement process.

Became the only domestic life insurer to achieve CMMI Level

3 certification for IT processes and software development

capabilities.

C) Financial Year 06-07:

Second consecutive year of profitability.

Leads Private Life Insurance Companies in Lives covered :

6.49 Million lives covered.

D) Financial Year 05-06:

Becomes the first Life Insurer to make profits.

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PRODUCTS

Horizon- II

SBI Life - Horizon II is a unique, non participating Unit Linked Insurance

Plan in Indian Insurance Industry, where you need not to be a financial

market expert. This plan offers the flexibility of Unit Linked Plan along

with Automatic Asset Allocation which provides relatively higher returns

on your money where as increasing death bench.

Twin benefit of insurance cover and market linked returns profits provides

higher security to Hassle-free investment management of funds from

inception to maturity, Automatic Asset Allocation of funds, automatic

rebalancing of funds at yearly intervals, free of cost higher protection, to

meet your family financial needs.

It is a unique, non-participating Unit Linked Insurance Plan. As per the plan

and term chosen by you, SBI Life will invest the net premium amount into

each of the funds mentioned.

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Maha Anand

SBI Life - Maha Anand is a simple & convenient unit linked plan, which

provides you insurance cover without any medicals.

Life begins afresh when you become a parent and when the child takes that

first step towards you, the moment is filled with cheer, enthusiasm never

felt before. This moment marks a new beginning in the childs life and

theres no looking back after that. The child keeps growing and so are his

dreams, aspirations which always aim to reach horizon and you want your

child achieve his/her dreams. But at the same time as a proud parent you

also want to secure their future against rising cost of education and other

necessities.

Key Features-

Twin benefit of market linked returns and insurance cover

Simple Joining Process - No medical examination required

Option to pay premium, as low as Rs 500 p.m.

Choice of 3 fund options to choose from

Flexibility to increase your investments, through Top-upInvestment

Flexibility through Switching and Redirection Options

Liquidity through partial withdrawals

Attractive Tax benefits under the Income Tax Act, 1961

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Unit Plus- II

We at SBI Life understand the basic needs for pension plan and give youfinancial strength to maintain your life style even after the retirement. SBI

Life - Unit Plus II Pension plan makes sure that you have regular income

after you retire and also helps you to maintain your standard of living.

This is a unit linked pension plan wherein the policyholder chooses an

investment period from 5 to 52 years for a vesting age between 50 to 70

years. You can choose to pay either single premium or pay regular premium

for the entire policy term. Your contributions are invested into 5 fund

options as per your choice.

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Unit Plus Child Plan

We at SBI LIFE understand you better and hence have developed SBI Life -

Unit Plus Child Plan to suit you and your needs best. This Plan is meant for

parents in the age group of 18-57 having a child between the age group of 0-

15 years.

Key Features-

Market related returns to match increasing cost of education Peace of Mind by giving you triple benefits

Loyalty units to celebrate your child reaching 18 years

New Investment Fund (Equity Optimizer Fund) in addition to

existing funds.

Pay Premium for a limited period and reap benefits over a long

time.

Flexible plan which adapts to your changing needs as and when

you want.

Pension plan

We at SBI Life understand the basic needs for pension plan and give you

financial strength to maintain your life style even after the retirement. SBI

Life - Unit Plus II Pension plan makes sure that you have regular income

after you retire and also helps you to maintain your standard of living.

This is a unit linked pension plan wherein the policyholder chooses an

investment period from 5 to 52 years for a vesting age between 50 to 70

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years. You can choose to pay either single premium or pay regular premium

for the entire policy term. Your contributions are invested into 5 fund

option.

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Key Features-

Choice to invest & control four different funds as per your risk

appetite

Choice to invest & control four different funds as per your risk

appetite.

Flexibility to choose between two options

Pure Pension

Pension cum Life Cover

No medical required for Pure Pension, automatic acceptance

facility

Flexibility to increase regular contribution

Top up payments: any amount, anytime

Customize your plan by adding riders

15 days free look period

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Smart ULIP

In the current volatile market scenario you need a plan which not only

protects your investment, but also enables you to get market related returns.

SBI Life - Smart ULIP is the perfect answer to your need, and will give you

not only Guarantee on select NAVs during the first seven years, but also

gives you the added attraction of participating in the market upside.

Key Features-

Guarantee of the highest of select NAVs, during the first seven

years on maturity.

Investment cum Insurance plan giving market related returns

Convenience through shorter premium paying term, giving you

a choice between two premium paying terms (PPT)

Power of more- Guaranteed Maturity NAV, continues beyond

the premium payment term.

Innovation structured investment fund-Flexi protect Fund

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Hassle free plan- we manage your investment, giving you

maximum opportunity for growth while protecting your

investments against adverse market conditions.

Attractive Tax benefits under the Income Tax Act, 1961

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Health Products

Financial planning is incomplete without planning health insurance. Due to

todays hectic lifestyle, improper diet, lack of exercise we are at higher risk

of contingencies of untimely serious illnesses. Sudden health problems

could have deep hole in your pockets. Medical science has advanced by

leaps and bounds in the last few decades. Theres a definite need to cover

for health insurance to reduce the financial burden.

SBI Life Insurance features both individual and group products like:

1. Unit Linked Products- this is a single non participating product group that

meets both the financial as well as insurance needs.

2. Pension Products- these comprehensive plans help to meet your post

retirement financial needs.

3. Pure Protection Products- nobody can predict future. So, any time

anything can shatter ones dreams. Pure Protection Products help to keep

one safe and secure during these trouble times.

SBI Life also offers some protection cum savings products and money back

scheme products. SBI also has products for brokers. These products take

inspiration from the endeavors of various industries and make your life

easy.

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Tax Benefits

SBI Life Insurance Company has outperformed ICICI Prudential Life

Insurance in terms of new business premium collection this year, according

to the data published by the Insurance Regulatory and Development

Authority (IRDA). Life Insurance Corporation (LIC) still retains the top

rank among all the insurers, with a market share of 61.88 per cent in the first

two months (April-May) of the present financial year. SBI Life has taken

the second position, with Rs 783.94 crore new business premiums collected

in this year, amounting to 9.06 percent of the market share. ICICI Prudential

Life Insurance, which still has the largest market share among the private

life insurers as per capitalization and number of lives covered, has slipped to

the third rank, with a premium collection of Rs 483 crore and a market share

of 5.59 per cent up to May.

SBI life had collected Rs 546.34 crore in the previous year compared with

ICICI Prudential that had gathered Rs 951.76 crore. SBI Life Insurance has

a capital of Rs 2,000 crore and a paid-up capital of Rs 1,000 crore. SBI

owns 74 per cent of the total capital with BNP Paribas Assurance holding

the remaining 26 per cent.

According to figures made available by IRDA, LIC was on the top position

with a market share of 41 per cent on the new business premium collection

in the previous year. LIC was followed by ICICI Prudential, with 12.2 per

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cent market share and SBI Life, with 8.9 percent. The insurance companies

ranking is often based on the new business premium coming out of the new

policies that are sold, though a large chunk of the money also comes from

renewal premium. Other leading life insurance companies, such as Bajaj

Allianz Life, Max New York Life and Reliance Life insurance, enjoy a

market share of 3 to 4 per cent each. In the previous financial year, when the

global financial crisis unfolded, insurance companies saw no growth in

business when compared with the previous year. This was primarily because

of weak investor confidence and the flight to safety that the investors had

adopted after the equity markets came crashing down.

"All insurance advertising offers a solution after implicitly raising the fear

of death or uncertainty of retirement. There are 14-15 players in the market,

all saying more or less the same negative things. So we wondered, is there

any other way to reflect what we wanted," says Mr. Muralidharan. On the

surface, insurance is about death. But why should one insure? "It's to make

sure an individual, and then her or his dependants, live well. So, if insurance

is portrayed in this light, we can get a larger number of people to accept it,"

he adds.

The size of the life insurance market is Rs 11,323 crore. SBI Life, which

started operations in 2001, has a market share of 1.49 per cent in terms of

premium and 8.97 per cent in terms of number of people insured, says Mr.

Muralidharan. Old and major player LIC has 67 per cent in terms of lives

insured and a market share of 74.26 per cent. Insurance companies also face

the challenge of getting younger people to invest. Most people under thirty

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think they are "indestructible," says Mr. Muralidharan. The ads are

"unpalatable" and "determine your death" and definitely discourage a lot of

very suave, articulate people from even contemplating insurance, so our

campaign aims to "remove the whiff of death" from it and make it a

"happiness product", he says.

Project Profile

Eligibility For Recruitment of an Insurance Agent

Every person who has cleared higher secondary examination can become an

agent other than a minor or the person who is convicted in any court for

crime or any legal proceedings. Men and women both can work as an

Agent. A single person can be associated with other life insurance

companies.

A training program is there to train a person who wants to become an

Agent. There is 100 Hrs. training program which can be done either with the

physical appearance in the class room or the interest basis. In the classroom

training the trainee has to be physically present in the training session.

There are difference sessions of training program. A trainee can attend any

session according to his comfort. The training period is of 25 days approx.

If the trainee does not have enough time to devote in the classroom training,

then there is another option left that is training on Internet.

On the basis of Internet the trainee has provided a login number along with

the password through which he operated his login and completed his

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training as convenient. Each and every hour pass on the net under his login

head will be count on his account. The test for the training program is also

on line. This is only procedure to be an Insurance Agent.

Scope of Insurance Agent

In the present scenario the living standard is becoming higher and higher

every day.

Every person who has a family to survive wants to provide his family each

and every possible comfortable thing.

He wants his children to be a well dressed, to be higher qualified in a well

recognized school, colleges, institutes and wants his children to go abroad

for higher education.

He wants to live a luxury life full of pleasure.

To fulfill all of his needs he has to earn more and more.

Any person can be on a job at a time or can be on a business cant fulfill his

pleasure requirement.

There is a source through which he can make money in a legal way that is

insurance sector.

Becoming an insurance Agent provides him the legal source by which he

can earn money with his current status.

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It is the business in which you deal with you personal contacts and can gain

extra income.

This business needs low investment and not of much effort.

Its all depending on your social contacts and your skills to convince people

by helping them to suggest the product which suited them the most.

As due to critical diseases, growing percentage of accident and fear of

financial crisis everyone wants to secure his or her future.

Insurance sector plays a vital role in assuring people about their future.

As the scope of insurance enhancing, the need of an insurance Agent who

can guide the potential customers is growing.

Being an insurance agent of SBI Life Insurance provides a legal mean to

earn money which protects a person from earning through an illegal source

which is harmful for society as well as him.

For the youngsters it provides great platform to prove them. On the basis of

their performance they can be recruited as unit manager.

Recruitment Process

The recruitment and selection is the major function of the human resource

department and recruitment process is the first step towards creating the

competitive strength and the strategic advantage for the organizations.

Recruitment process involves a systematic procedure from sourcing the

candidates to arranging and conducting the interviews and requires many

resources and time. A general recruitment process is as follows:

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1. Identifying the vacancy-The recruitment process begins with the

human resource department receiving requisitions for recruitment

from any department of the company. These contain:

Posts to be filled

Number of persons

Duties to be performed

Qualifications required

Preparing the job description and person specification.

Locating and developing the sources of required number and type

of employees (Advertising etc).

Short-listing and identifying the prospective employee with

required characteristics.

Arranging the interviews with the selected candidates.

Conducting the interview and decision making

2. Prepare job description and person specification

3. Advertising the vacancy

4. Managing the response

5. Short-listing

6. Arrange interviews

7. Conducting interview and decision making

The recruitment process is immediately followed by the selection process

i.e. the final interviews and the decision making, conveying the decision and

the appointment formalities.

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Fig.2.1 Recruitment process

The recruitment procedure of life insurance is very easy. A person with high

educating and well experience can be recruited after a personal interview

and group discussion. After the training program is completed the

Insurance Agent has to appear for the pre-examination conducted by IRDA.

As he clear the exam he provides a license, which is the proof of a legalized

insurance Agent, which permits him to deal in his insurance business.

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Steps in recruitment of Insurance Agents

Approach to the likely person

Appointment as per condition

Discuss the topic

Give the documents which includes:-

1. Prospectus of the company

2. Brochure3. Companys plan

4. Questionnaire

Collect the document after its completion

Forward it to project manager

Feed it in the computer as the database

Follow up as per conditions

Modes of Contact

Personal Contacts

References

Phone Calls

Guidance as per Unit Manager

E-Recruitment

Many big life insurance organizations use Internet as a source of

recruitment. E- Recruitment is the use of technology to assist the

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recruitment process. They advertise job vacancies through worldwide web.

The job seekers send their applications or curriculum vitae i.e. CV through e

mail using the Internet. Alternatively job seekers place their CVs in

worldwide web, which can be drawn by prospective employees depending

upon their requirements.

Advantages of e-recruitment are:

Low cost.

No intermediaries

Reduction in time for recruitment.

Recruitment of right type of people.

Efficiency of recruitment process.

The buzzword and the latest trends in recruitment is the E-Recruitment.

Also known as Online recruitment, it is the use of technology or the web

based tools to assist the recruitment process. The tool can be either a job

website like naukri.com, the organizations corporate web site or its own

intranet. Many big and small organizations are using Internet as a source of

recruitment. They advertise job vacancies through worldwide web. The job

seekers send their applications or curriculum vitae (CV) through an e-mail

using the Internet. Alternatively job seekers place their CVs in worldwide

web, which can be drawn by prospective employees depending upon their

requirements.

The two kinds of e- recruitment that an organization can use is

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Job portals i.e. posting the position with the job description and the

job specification on the job portal and also searching for the suitable

resumes posted on the site corresponding to the opening in the

organization.

Creating a complete online recruitment/application section in the

companys own website. Companies have added an application

system to its website, where the passive job seekers can submit their

resumes into the database of the organization for consideration in

future, as and when the roles become available.

Resume Scanners: Resume scanner is one major benefit provided by

the job portals to the organizations. It enables the employees to screen

and filter the resumes through pre-defined criterias and requirements

(skills, qualifications, experience, payroll etc.) of the job.

Job sites provide a 24*7 access to the database of the resumes to the

employees facilitating the just-in-time hiring by the organizations. Also, the

jobs can be posted on the site almost immediately and is also cheaper than

advertising in the employment newspapers. Sometimes companies can get

valuable references through the passers-by applicants. Online recruitment

helps the organizations to automate the recruitment process, save their timeand costs on recruitments.

Online recruitment techniques

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Giving a detailed job description and job specifications in the job

postings to attract candidates with the right skill sets and

qualifications at the first stage.

E-recruitment should be incorporated into the overall recruitment

strategy of the organization.

A well defined and structured applicant tracking system should be

integrated and the system should have a back-end support.

Along with the back-office support a comprehensive website to

receive and process job applications (through direct or online

advertising) should be developed.

Sources of Recruitment

Every organization has the option of choosing the candidates for its

recruitment processes from two kinds of sources: internal and external

sources. The sources within the organization itself (like transfer of

employees from one department to other, promotions) to fill a position are

known as the internal sources of recruitment. Recruitment candidates from

all the other sources (like outsourcing agencies etc.) are known as the

external sources of recruitment.

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SOURCES OF RECRUITMENT

Internal Sources

1. Transfer: The employees are transferred from one department

to another according to their efficiency and experience.

2. Promotions: The employees are promoted from one department

to another with more benefits and greater responsibility based

on efficiency and experience.

3. Others are Upgrading and Demotion of present employeesaccording to their performance.

4. Retired and Retrenched employees may also be recruited once

again in case of shortage of qualified personnel or increase in

load of work. Recruitment such people save time and costs of

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the organizations as the people are already aware of the

organizational culture and the policies and procedures.

5. The dependents and relatives of Deceased employees and

Disabled employees are also done by many companies so that

the members of the family do not become dependent on the

mercy of others.

External Sources

1. Press Advertisements: Advertisements of the vacancy in

newspapers and journals are a widely used source of

recruitment. The main advantage of this method is that it has a

wide reach.

2. Educational Institutes: Various management institutes,

engineering colleges, medical Colleges etc. are a good source

of recruiting well qualified executives, engineers, medical staff

etc. They provide facilities for campus interviews and

placements. This source is known as Campus Recruitment.

3. Placement Agencies: Several private consultancy firms

perform recruitment functions on behalf of client companies by

charging a fee. These agencies are particularly suitable for

recruitment of executives and specialists. It is also known as

RPO (Recruitment Process Outsourcing)

4. Employment Exchange: Government establishes public

employment exchanges throughout the country. These

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exchanges provide job information to job seekers and help

employers in identifying suitable candidates.

5. Labor Contractors: Manual workers can be recruited through

contractors who maintain close contacts with the sources of

such workers. This source is used to recruit labor for

construction jobs.

6. Unsolicited Applicants: Many job seekers visit the office of

well-known companies on their own. Such callers are

considered nuisance to the daily work routine of the enterprise.

But can help in creating the talent pool or the database of the

probable candidates for the organization.

7. Employee Referrals / Recommendations: Many organizations

have structured system where the current employees of the

organization can refer their friends and relatives for some

position in their organization. Also, the office bearers of trade

unions are often aware of the suitability of candidates.

Management can inquire these leaders for suitable jobs. In

some organizations these are formal agreements to give priority

in recruitment to the candidates recommended by the trade

union.

8. Recruitment at Factory Gate: Unskilled workers may be

recruited at the factory gate these may be employed whenever a

permanent worker is absent. More efficient among these may

be recruited to fill permanent vacancies.

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2.4.5 Factors Affecting Recruitment

The recruitment function of the organizations is affected and governed by a

mix of various internal and external forces. The internal forces or factors are

the factors that can be controlled by the organization. And the external

factors are those factors which cannot be controlled by the organization.

The internal and external forces affecting recruitment function of an

organization are:

Factors Affecting Recruitment

Internal Factors

The internal factors i.e. the factors which can be controlled by the

organization are:

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1. Recruitment Policy: The recruitment policy of an organization

specifies the objectives of recruitment and provides a framework for

implementation of recruitment program. It may involve

organizational system to be developed for implementing recruitment

programs and procedures by filling up vacancies with best qualified

people.

Factors affecting recruitment policy

Organizational objectives

Personnel policies of the organization and its competitors.

Government policies on reservations.

Preferred sources of recruitment.

Need of the organization.

Recruitment costs and financial implications.

2. Human Resource Planning: Effective human resource planning helps

in determining the gaps present in the existing manpower of the

organization. It also helps in determining the number of employees to

be recruited and what qualification they must possess.

3. Size of the Firm: The size of the firm is an important factor in

recruitment process. If the organization is planning to increase itsoperations and expand its business, it will think of hiring more

personnel, which will handle its operations.

4. Cost: Recruitment incur cost to the employer, therefore,

organizations try to employ that source of recruitment which will

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bear a lower cost of recruitment to the organization for each

candidate.

5. Growth and Expansion: Organization will employ or think of

employing more personnel if it is expanding its operations.

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External Factors

The external forces are the forces which cannot be controlled by the

organization. The major external forces are:

1. Supply and Demand: The availability of manpower both within and

outside the organization is an important determinant in the

recruitment process. If the company has a demand for more

professionals and there is limited supply in the market for theprofessionals demanded by the company, then the company will have

to depend upon internal sources by providing them special training

and development programs.

2. Labor Market: Employment conditions in the community where the

organization is located will influence the recruiting efforts of the

organization. If there is surplus of manpower at the time of

recruitment, even informal attempts at the time of recruiting like

notice boards display of the requisition or announcement in the

meeting etc will attract more than enough applicants.

3. Image / Goodwill: Image of the employer can work as a potential

constraint for recruitment. An organization with positive image and

goodwill as an employer finds it easier to attract and retain employees

than an organization with negative image. Image of a company is

based on what organization does and affected by industry. For

example finance was taken up by fresher BBAs when many finance

companies were coming up.

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4. Political-Social- Legal Environment: Various government

regulations prohibiting discrimination in hiring and employment

have direct impact on recruitment practices. For example,

Government of India has introduced legislation for reservation in

employment for scheduled castes, scheduled tribes, physically

handicapped etc. Also, trade unions play important role in

recruitment. This restricts management freedom to select those

individuals who it believes would be the best performers. If the

candidate cant meet criteria stipulated by the union but union

regulations can restrict recruitment sources.

5. Unemployment Rate: One of the factors that influence the availability

of applicants is the growth of the economy (whether economy is

growing or not and its rate). When the company is not creating new

jobs, there is often oversupply of qualified labor which in turn leads

to unemployment.

6. Competitors: The recruitment policies of the competitors also affect

the recruitment function of the organizations. To face the

competition, many a times the organizations have to change their

recruitment policies according to the policies being followed by the

competitors.

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BRANCHES OF SBI LIFE INSURANCE :

EFFECTIVE MARKETING STRATEGIES FOR INSURANCE

PRODUCTS:

Now the Indian consumer is knowledgeable and sensitive. Consumers are

increasingly more aware and are actively managing their financial affairs.

People are increasingly looking not just at products, but also at integrated

financial solutions that can offer stability of returns along with

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total protection. In view of this, the insurance managers need to understand

more about the details that go into the introduction of insurance products to

make it attractive in this competitive market. So now days an insurance

manager requires leadership, commitment, creativity, and flexibility. "Every

family in every village in the country should feel safe and secure". This

vision alone will help to bring the new ideas to the insurance manager.

Financial, marketing and human resource polices of the corporations

influence the unit mangers to make decisions. Performance of insurance

company depends on the effectiveness of such policies. Insurance

corporations formulate and revise these policies from time to time to ensure

that the performance of the managers is best for the organization. In the

competitive market, insurance companies are being forced to adopt strictly

professional approach in marketing. The insurance companies face the

challenge of changing the uninspiring public image of the industry.49Some

of the important marketing elements are-

Marketing mix.

The importance of relationship.

Positioning.

Value addition.

Segmentation.

Branding.

Insuring service quality.

Effective pricing.

Customer satisfaction research.

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The growth of insurance sector is governed largely by factors external to it.

The following factors influence the market and demand of product-

Government policies.

Growth in population.

Changing age profile.

Income wise distribution of the population.

Level of insurance awareness.

The pricing of the policies.

The economic climate of the country.

The aversion to risk.

Social and political features of the country.

Growth scenario in the world.

Different companies adopt different approaches in their marketing

strategies. One approach is focus upon product quality, which can give

confidence in the mind of customers that they are offered by best-featured

products. And other approach is focusing on customers needs, which

involve a heavy investment in developing relationships with policyholders.

Under this approach customer can expect a range of products and service

offered to him. Third approach is market segmentation under which thepopulation can be divided into several homogeneous products and groups,

the effort should be tie clients to the company by customized combination

of coverage, easy payment plans, risk management advice, and convenient

and quick claim handling.

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SWOT ANALYSIS:

STRENGTHS:

Since the tribe of life insurers has grown from 12 to 16, but SBI still leads

the private sector pack. SBI life is the Ranks among Global Top Three atMillion Dollar Round Table.

Their strategy has been to grow the portfolio large enough so that there is an

in-built hedge and in a market where the portfolio has larger element of

savings rather than protection, this works well. And to make sure they can

grow the business, they have built a distribution network.

Product innovation is a focus area for them. To stay relevant to the

consumer they work hard for innovating and developing new products.

The insurer is fortunate to have the strength of the SBI Bank brand behind

it; that went a long way in instilling confidence in customers that the brand

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was trustworthy a very important attribute in insurance and would be

there for the long-term.

Even today after it has rolled out so many campaigns, SBI remains among

the most trusted brand.

SBI Life is fundamentally strong and the prospect of meeting

its policyholder's obligations as highest.

WEAKNESSES:

Minimum premium for single term is 40000 which is very high.

We dont have any plan for senior citizens.

Customer cannot withdraw amount before 3years this is the main reason

people believe in mutual funds for short-term investment.

Allocation charges are very high.

Product awareness.

Very less branches.

Less awareness about SBI Life insurance in rural areas.

SBI life is still dont have reach in rural place. LIC of India does maximum

business from rural areas.

OPPORTUNITIES :

Market is booming. Insurance companies are fast emerging as one of the

most prominent players in the govt. securities market.

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Lack of awareness about insurance is one of major opportunity for SBI Life

Insurance. It can create market for itself by making masses aware about

insurance and its need.

Policies of govt. of India are favorable for the growth of the company.

THREATS:

Capital requirement for setting up a life insurance company is very high.

The intensity of rivalry among private players is very high.

Increased competition in the insurance sector.

The insurance sector remains a very competitive market and those

companies that are able to best utilize their data and provide their customer

with the nearly all personalized options will have the distinct competitive

advantage. The insurers that come up to the top will be those who leverage

the appropriate.

Indian people still not believe in private insurance companies so generate

new business is very difficult for new insurance Company

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Research Methodology :

Questionnaire To the General Public

To find out the perception of the persons about SBI Life Insurance

Name :- __________________________________

Address :- ________________________________

Age Group :-

Below 25.25 40 years.

40 55 years.

Above 55 years.

Occupation :-

Student.

Service.

Professional.

Other, Please Specify ____________________

Are you aware about SBI Life Insurance?

75% of people are aware about the SBI Life Insurance Company.

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25% of people are not aware about the SBI Life Insurance Company.

Do you have any account in SBI Bank?

70% of the public have their account with the SBI Bank.

30% of the public do not have any account in SBI Bank.

Do you have any investment plans of SBI Life Insurance?

62% of the them.

38% of them dont have it.

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Are you satisfied with the plans of SBI Life insurance?

Have you invested in any other life insurance company other

than SBI Life insurance?

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Would you like to take any investment plans of SBI Life, if you

find it better?

What do you think what are the benefits of the life insurance?

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Which feature of life insurance policy will you consider while

buying?

According to you what is the right age to buy insurance?

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Articles related to the SBI Life :

SBI Life Insurance net profit up 52% to Rs 556 cr.

Shilpy Sinha, ET Bureau May 2, 2012, 04.04PM IST

MUMBAI: SBI Life Insurance posted profit of Rs 556 crore, an increase of

52% in 2011-12 over the last financial year 2010-11 mainly due to better

operational efficiency. Also, the insurer for the first time, since its inception

in 2001, has declared a dividend of 5%.The new business premium

collected by the company was down by 13% to Rs 6,531 crore, while

private insurers was down 17% during 2011-12. The company has increased

its market share to 19.9% in 2011-12, from 19.2% among private life

65
http://economictimes.indiatimes.com/topic/operational%20efficiencyhttp://economictimes.indiatimes.com/topic/operational%20efficiency


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insurers. The company is a joint venture between State Bank of India and

BNP Paribas Cardif.

IRDA slaps Rs 70L fine on SBI Life.

TNN | Jul 11, 2011, 04.29AM IST

MUMBAI: SBI Life Insurance, the country's largest new generation life

insurer and a subsidiary of State Bank of India, has been fined Rs 70 lakh

by the insurance regulator for making unauthorized payments up to Rs 204

crore to various banks, including Rs 186 crore to the State Bank group,

between 2005 and 2010.

Announcing the penalty, IRDA on Friday said that its group insurance

norms bar companies from making any payment to corporate agents in

excess of the commission approved by the authority. "Despite these specific

guidelines, the life insurer made payments in violation to eight of its

corporate agents and six other master policy holders," said IRDA chairman

in his written order.

The IRDA has treated payment to each entity as an individual violation and

imposed a penalty of Rs 5 lakh for each of the 14 offences. SBI Life had

said that that these payments were reimbursement of administrative

expenses in consideration of certain functions discharged by various entitiesin their capacity as master policyholder. However, this argument was not

accepted by the regulator. IRDA's norms explicitly bar insurers from

making payments either towards management expenses, document expenses

or profit commission or bulk discount or payment of any other description

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http://economictimes.indiatimes.com/state-bank-of-india/stocks/companyid-11984.cmshttp://economictimes.indiatimes.com/topic/BNP%20Paribas%20Cardifhttp://economictimes.indiatimes.com/state-bank-of-india/stocks/companyid-11984.cmshttp://economictimes.indiatimes.com/topic/BNP%20Paribas%20Cardif


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to agents, corporate agents, group organizers or group managers. IRDA has

said that the 'master policy holder' to whom SBI Life has made payments is

a synonym for group organizer or master policy holder.

CONCLUSIONS

During the data collected, it has been found that people have great

awareness about SBI Life Insurance.

People are beginning to look beyond LIC for their insurance needs and are

willing to trust private players with their hard earned money.

People in general have been influenced by the marketing activities

of insurance companies. A high penetration of print, radio and TV ad

campaigns over the years is beginning to have its impact now.

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Another important trend was in terms of people viewing insurance as a tax

saving and investment instrument as much as protective one.

The general satisfaction levels among public with regards to policy and

agents still requires improvement. Here lies the opportunity for a relatively

new comer like SBI Life Insurance. LIC has never been known for prompt

service or customer oriented methods but SBI Life Insurance can build its

reputation based on these factors.

37% out of 75% people those who are aware about SBI Life Insurance have

investment plans of it.

25% people not aware about SBI Life Insurance, hence they invested in

other Life Insurance Company.

83% out of 37% people those who have SBI Life Insurance investment

plans are very satisfied with these plans because of good services, returns,

guarantee, brand image, premium, nice features, attractive plans etc.

70% of the people those who dont have account in SBI Bank think that

they cant take investment plans of SBI Life Insurance.

67% People thought that Covers future uncertainty, tax saving and

investment are some of the benefits of Life Insurance People are interested

in those plans that give maximum profit in short term

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RECOMMENDATION AND SUGGESTIONS

Recommendations-

Following are suggestions made for the benefits and augmentation of the

sound working of the company SBI life insurance

1. Need to train and develop life insurance agents with more

comprehensive knowledge and skills to counter every queries

of the customer.

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2. It is suggested that company should not left any stone unturned

towards sound advertisement and promotional measures on

every section whether it is printed, media or air via radio.

3. It is also suggested that skilled management graduates need to

be places on sales and marketing of financial services that can

render their best ideas for the accomplishment of the company

goals and objectives to the best extent.

4. Also, care need to be taken that every customers grievance

should be met with delight whether before purchase or after

sales.

5. There should be an expansion measure for more offices and

location of more centers for offices of the company is

established sop that company may grow its network.

6. Life insurance Products should be made flexible so as to suit

every section of society.

Suggestions-

Following are suggestions made for the benefits and

augmentation of the sound working of the company SBI life insurance:

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1. Need to train and develop life insurance agents with more

comprehensive knowledge and skills to counter every queries

of the customer.

2. It is suggested that company should not left any stone

unturned towards sound advertisement and promotional

measures on every section whether it is printed, media or air

via radio.

3. The advisors should be made aware and educated so that they

can extend their services not only in terms of collection of

premium checks from the customer but also to educate them

about the insurance and the latest nontraditional plans.

4. All the company should come out of a unit link product thatshould aid every selection of the society.

5. It is also suggested that skilled management graduates need to

be places on sales and marketing of financial services who can

render their best ideas for the accomplishment of the company

goals and objectives to the best extent.

6. Also, care need to be taken that every customers grievance

should be met with delight whether before purchase or after

sales.

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7. There should be an expansion measure for more offices and

location of more centers for offices of

a project on sbi life insurance

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