birla proj1

8/8/2019 Birla Proj1

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INDEX

1. Introduction

2. Innovation/Turnovers

3. Why Birla Sun Life Insurance (BSLI)4. Vision/Mission5. Products/Plans6. FAQs about BSLI7. Fund details/ Management8. Conclusion9. Bibliography


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Acknowledge

We the students of TY BFM are grateful to our dearly professor Miss Swiddle Dabre,for her support and co operation and giving us this topic for the project because of whichwe have come to know the insurance fund management of BSLI.

And hereby we also thank all our group members for their dedication to make theproject a success.


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INTRODUCTION

Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is a joint venturebetween the Aditya Birla Group, a well known and trusted name globally amongst Indianconglomerates and Sun Life Financial Inc, leading international financial servicesorganization from Canada.

Birla Sun Life Insurance Company is a 74: 26 joint venture between Aditya Birla Groupand Sun Life financial Services of Canada. As on 1 st March 2003, the company has anequity capital of Rs. 180 crore. Birla Sun Life has Mr. Nani B Javeri as its CEO.

The local knowledge of the Aditya Birla Group combined with the domain expertise of Sun Life Financial Inc., offers a formidable protection for its customers future.

With an experience of over 9 years, BSLI has contributed significantly to the growth anddevelopment of the life insurance industry in India and currently ranks amongst the top5 private life insurance companies in the country.

A US $28 billion corporation, the Aditya Birla Group is in the league of Fortune 500worldwide. It is anchored by an extraordinary force of 100,000 employees, belonging to25 different nationalities.

The group operates in 25 countries across six continents truly India's firstmultinational corporation.

Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG), has astrong presence across various financial services verticals that include life insurance,fund management, distribution & wealth management, security based lending, insurancebroking, private equity and retail broking.

The seven companies representing ABFSG are Birla Sun Life Insurance Company, BirlaSun Life Asset Management Company, Aditya Birla Money, Aditya Birla Finance, BirlaInsurance Advisory & Broking Services, Aditya Birla Capital Advisors and ApolloSindhoori Capital Investment.

The company plans to focus on rural segment by leveraging the network of the AdityaBirla Centre for Community Initiative and Rural Development in rural areas. Thecompany's distribution set up comprises insurance advisors for life and an expertmarketing team for group products.


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INNOVATION

Known for its innovation and creating industry benchmarks, BSLI has several firsts to its credit.

It was the first Indian Insurance Company to introduce Free Look Period and the same wasmade mandatory by IRDA for all other life insurance companies. Additionally, BSLI pioneered thelaunch of Unit Linked Life Insurance plans amongst the private players in India.

To establish credibility and further transparency, BSLI also enjoys the prestige to be theoriginator of practice to disclose portfolio on monthly basis.

These category development initiatives have helped BSLI be closer to its policy holders expectations, which gets further accentuated by the complete bouquet of insurance products(viz. pure term plan, life stage products, health plan and retirement plan) that the companyoffers.

TURNOVER


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Such services are well supported by sound financials that the Company has.

The AUM (Asset under Management) of BSLI stood at Rs.8165 crs as on February 28,2009.

While as on March 31, 2009, the company has a robust capital base of Rs. 2000 crs.

In FY 2008-09, the consolidated revenues of ABFSG from these businesses crossed Rs.4763 crores, registering a growth rate of 36%.

Aditya Birla Group is India's second largest business house, with a turnover of over$4.75bn and an asset base of $3.8 bn. The Group is a well diversified conglomerate with72,000 strong workforce spanning 40 Companies spread across 17 countries.

SETUP


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Add to this, the extensive reach through its network of 600 branches and 1,75,000empanelled advisors.

This impressive combination of domain expertise, product range, reach and ears onground, helped BSLI cover more than 2 million lives since it commenced operations andestablish a customer base spread across more than 1500 towns and cities in India.

To ensure that our customers have an impeccable experience, BSLI has ensured that ithas lowest outstanding claims ratio of 0.00% for FY 2008-09. Additionally, BSLI has thebest Turnaround Time according to LOMA on all claims Parameters.

Why Birla Sun Life Insurance (BSLI)

Sun Life Financial is a leading international financial services organisation providing adiverse range of protection and wealth accumulation products and services to individuals

and corporate customers. Chartered in 1865, Sun Life Financial and its partners today


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have operations in key markets worldwide, including Canada, the United States, theUnited Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China andBermuda. As of December 31, 2008, the Sun Life Financial group of companies had total

assets under management of $381 billion.

Birla Sun Life Insurance is one of the few Indian companies to have a fully operationalBusiness Continuity Plan (BCP) to ensure minimal impact to the organisation, its people,

and most importantly, its customers. Our Business Continuity Planning (BCP) Program isa response plan which would ensure that in the event of a disaster we would be able torestore and recover operations for critical processes within a predetermined time after

the disaster.

To have a planned response in the event of any contingency ensuring recovery of criticalactivities at agreed levels within agreed timeframe thereby complying with variousregulatory requirements and minimizing the potential business impact to BSLI.Additionally to create a system that fosters continuous improvement of businesscontinuity management

Business Continuity Management System Objectives (BCMS):

The objectives of BSLI's BCMS are as follows

Ensuring a Proactive response to any contingency

Ensuring recovery of identified critical activities within agreedtimeframe.

Ensuring that we adhere to our clients, contractual, legal & regulatory requirements.

Vision/Mission

Vision


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To be a leader and role model in a broad based and integrated financial servicesbusiness.

Mission

To help people mitigate risks of life, accident, health, and money at all stages and

under all circumstancesEnhance the financial future of our customers including enterprises

Values

IntegrityCommitmentPassionSeamlessness

Speed

Our Commitment

Risk Assessment & Business Impact Analysis (BIA) annually.

Business Continuity Plan for HO & its Critical branches.

Crisis Management Plan & Pandemic Response Plan at a corporateLevel.

Business Continuity Plan Testing ensuring viability of all its plans.

The activities set forth above may evolve as business andregulatory needs require

PRODUCT AND PLANS

Here is given a comprehensive list of policies and products offered by Birla Sun LifeInsurance Co. Ltd.


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Protection Plans

Birla Sun Life Insurance Term Plan Birla Sun Life Insurance Premium Back Term Plan

Saving Plans

Birla Sun Life Insurance Guaranteed Bachat Plan Birla Sun Life Insurance Money Back Plus Plan Birla Sun Life Insurance Gold-Plus II Birla Sun Life Insurance Saral Jeevan Plan Birla Sun Life Insurance Supreme-Life Birla Sun Life Insurance Dream Plan Birla Sun Life Insurance ClassicLife Premier Birla Sun Life Insurance SimplyLife Birla Sun Life Insurance PrimeLife Premier Birla Sun Life Insurance PrimeLife Birla Sun Life Insurance Flexi Cash Flow Birla Sun Life Insurance Flexi Save Plus Birla Sun Life Insurance Flexi Life Line Birla Sun Life Insurance Single Premium Bond

Health Solution Plans

BSLI Health Plan BSLI Universal Health Plan

Retirement Plans

Birla Sun Life Insurance Freedom 58 Birla Sun Life Insurance Flexi SecureLife Retirement Plan II

Children Plans

Birla Sun Life Insurance Children's Dream Plan

Rural Plans

Birla Sun Life Insurance Bima Suraksha Super Birla Sun Life Insurance Bima Dhan Sanchay Birla Sun Life Insurance Bima Kavach Yojana

Group Plans

Birla Sun Life Insurance Group Unit Linked Plan Birla Sun Life Insurance Group Protection Solutions


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Birla Sun Life Insurance Group Superannuation Plan Birla Sun Life Insurance Group Gratuity Plan Birla Sun Life Insurance Credit Guard Plan Birla Sun Life Insurance Single Premium Group Term Plan

NRI Plans

Birla Sun Life Insurance PrimeLife Premier Birla Sun Life Insurance PrimeLife Birla Sun Life Insurance Flexi Life Line Plan Birla Sun Life Insurance Flexi Save Plus Birla Sun Life Insurance Flexi Cash Flow Birla Sun Life Insurance ClassicLife Premier Birla Sun Life Insurance Single Premium Bond Birla Sun Life Insurance SimplyLife

ELABAROTATION ON FAMOUS PLANS


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Type Product Name1 Product Name 2 Product Name 3

Type BSLI Term Plan BSLI PremiumBack TermBSLI High Net worth Term Plan

Entry Age 18 55 Yrs

18 - 50 years forthe 20 year

term, 18 - 55years for the 10

and 15 yearsterm plan

18-65 Yrs

PolicyTerm /BenefitPeriod

As per policyterms 5,10,15,20

or 25 years

10, 15 & 20 yearsubject to 70 Yrs

at maturity

10, 15, 20, 25 or 30 yearssubject to 75 years at maturity

Min SumAssured

Rs 2,00,000 forregular paymentRs. 2,50,000 for

single pay

Rs 2,00,000

Rs 50,00,000

PremiumPayment

Frequency

Annually, semi-annually,quarterly,

monthly (throughECS) or one-time

payment

Annually, semi-annually,

quarterly or on amonthly basis

Annually, half-yearly, quarterlyor monthly.premium will be

multiplied by: 1.000 for annual0.510 for half-yearly 0.258 for

quarterly 0.087 for monthlymodes (3 monthly instalments

required at issue)

DeathBenefits Sum assured

Sum assured +100% premium

back paid tilldate

Sum assured

Maturitybenefit Nil

100% PremiumBack or 125%Premium Back.

Nil

Riders

1. AccidentalDeath &

Dismemberment2.Critical Illness

3. Waiver of Premium

1. AccidentalDeath &

Dismemberment2.Critical Illness

3. Waiver of Premium

TaxBenefits

Tax Benefits

Under Sec 80Cand Sec 10(10D)of the IncomeTax Act, 1961

Tax BenefitsUnder Section

80C and10(10D) of the

Income Tax Act,1961

Tax Benefits under Section 80C,80D and Section 10(10D) of the

Income Tax Act, 1961.

OTHER INSURANCE PLANS

Following are the Life Insurance plans that Birla Sun life Insurance Company Ltd.


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1. Birla Sun Life Insurance Term Plan - This plan can take care of your financialcommitments of yours towards your family by providing large cover at low cost.Minimum age of entry for this plan is 18-55 and maximum maturity age is 70 years.

2. Birla Sun Life Insurance Premium Back Term Plan - This is a low cost life coverpromises you to refund the entire premium on maturity or death. Two options are alsothere to choose 100% premium back or 125% premium back. Maximum term period forthis plan is 20 years.

3. Birla Sun Life Insurance Guaranteed Bachat Plan - Its an non participatingendowment plan offers you guaranteed returns and chance to earn survival benefit fromthe 3rd year onwards. You can withdraw this benefit each tear or can use it as to paythe premium dues.

4. Birla Sun Life Insurance Money Back Plus Plan - This is also a non-participatingendowment plan, which gives you maturity and survival both benefits. One remarkablepoint is that on every policy anniversary it increases your cover by an equal amount of your base premium.

5. Birla Sun Life Insurance Gold-Plus II - Its an investment plan offering nine-funding option to choose and 100% equity fund option also. Free unlimited switches aregiven to you to manage your investments. This plan offers good liquidity to you.

6. Birla Sun life insurance Platinum Plus - It is a unit linked, non participating

insurance plan. In this plan, the investment risk is borne by the policyholder but not if this policy is detained till maturity.

7. Birla Sun Life Insurance Saral Jeevan Plan - In todays fast life its really easy tobuy an insurance plan, which you immediately can purchase just by providing threehealth statements to the company. Bsli Saral Jeevan is the best option to go for.

8. Birla Sun Life Insurance Supreme-Life - Its a unit linked non-participating planproviding 8-fund options to choose. It gives a choice of two death benefits.

9. Birla Sun Life Insurance Dream Plan - Its a unit-linked policy, which provides youguaranteed returns, 0% allocation charges, and option to double or triple theguaranteed maturity.

10. Birla Sun Life Insurance ClassicLife Premier - It will give you guaranteedadditions in the form of guaranteed units and a good choice of 8 investment funds arealso there. You are free to choose the term period of 10,20,30 or whole life.
http://f/Administrator/My%20Documents/Google%20Talk%20Received%20Fileshttp://www.bimadeals.com/insurance/life-insurance/birla-sun-life-term-plan-premium-back/http://www.bimadeals.com/life-insurance-india/birla-sun-life-insurance-platinum-plus.phphttp://f/Administrator/My%20Documents/Google%20Talk%20Received%20Fileshttp://www.bimadeals.com/insurance/life-insurance/birla-sun-life-term-plan-premium-back/http://www.bimadeals.com/life-insurance-india/birla-sun-life-insurance-platinum-plus.php


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11. Birla Sun Life Insurance SimplyLife - It ensures a lifetime of tax-freeinvestments to fulfill the needs of your dear ones. Its a market related plan providesyou a good death benefit amount.

12. Birla Sun Life Insurance PrimeLife Premier - Its a single time investment withtop up options. It keeps you hassle free and provides you guaranteed returns at regularintervals.

13. Birla Sun Life Insurance PrimeLife - It is a single premium policy gives you thebenefit of life insurance and investments as well. Its a non-participating ULIP policy.

14. Birla Sun Life Insurance Flexi Cash Flow - For this policy you can pay lump sumpremium payment at regular intervals. It will give you 3% guaranteed returns on netpolicy charges.

15. Birla Sun Life Insurance Flexi Save Plus - This plan will give you the choices of 3 fund options, maturity ages & guaranteed returns of 3%.

16. Birla Sun Life Insurance Flexi Life Line - This would provide you a life long covertill 100 years of age and will give you the option of tax-free partial withdrawals.

17. Birla Sun Life Insurance Single Premium Bond - This plan gives you theopportunity to make one time investment with no medical tests and will also gives you

the facility of high entry age. Its a short term investment plan provides you the optionof 5 years or 10 years term period.

18. Birla Sun Life Insurance Freedom 58 - Its a non- participating ulip plan . It helpsyou accumulate your premiums and the investment return there of into a corpus of yourretirement.

19. Birla Sun Life Insurance Flexi Secure Life Retirement Plan II - This willprovide you the option to take a life cover or not. You can choose your retirement age

yourself whether you want to prepone/postpone it.

20. Birla Sun Life Insurance Children's Dream Plan - Its a unit-linked policy, whichprovides you guaranteed returns, 0% allocation charges, and option to double or triplethe guaranteed maturity.

FAQs about BSLI

What is the investment strategy of BIRLA SUN LIFE INSURANCE?BIRLA SUN LIFE INSURANCE focuses on constructing high quality diversified equity
http://www.bimadeals.com/life-insurance-india/life-insurance.phphttp://www.bimadeals.com/ulips-plan.phphttp://www.bimadeals.com/insurance/life-insurance/birla-sunlife-insuranceretirement-planbirla-sunlife-insurance-freedom-58-retirement-plan/http://www.bimadeals.com/ulips-plan.phphttp://www.bimadeals.com/insurance/life-insurance/birla-sunlifechildren-planschildren-dream-plan/http://www.bimadeals.com/life-insurance-india/life-insurance.phphttp://www.bimadeals.com/ulips-plan.phphttp://www.bimadeals.com/insurance/life-insurance/birla-sunlife-insuranceretirement-planbirla-sunlife-insurance-freedom-58-retirement-plan/http://www.bimadeals.com/ulips-plan.phphttp://www.bimadeals.com/insurance/life-insurance/birla-sunlifechildren-planschildren-dream-plan/


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portfolio which is skewed towards large-cap stocks with selective exposure to mid-caps.We invest in companies having clear business plans, scalable business model, efficient & visionary management as well as growth prospects. On the debt side, we predominantlyinvest in highest rated instruments to ensure better portfolio quality and liquidity.

What is an IPO? Does BIRLA SUN LIFE INSURANCE invest in IPOs?When a company approaches the capital market with an issue of shares for the firsttime, the issue is called an Initial Public Offering or an IPO. This process makes the wayfor listing and trading of the companys equity shares on the stock exchanges. BIRLASUN LIFE INSURANCE invests in IPOs of fundamentally strong companies. Prior toinvesting, BIRLA SUN LIFE INSURANCE conducts an in-depth research of the companywith an emphasis on management quality and capabilities. An interaction with thecompany management is also undertaken to get a better understanding of their businessmodel and future plans.

What are ULIPs?A Unit Linked Insurance Plan (ULIP) is a life insurance policy, which offers the dualbenefits of a protection for life and investments. The protection element is the

underlying insurance cover while the investment element is that portion of the premiumthat is invested by the insurance company on your behalf in a fund of your choice.

What is the benefit of investing in ULIPs?ULIP is a unique investment avenue, which helps you fulfill your long-term financialgoals. It fosters disciplined investment as it requires you to make investment at regularintervals. Being long-term in nature, it automatically provides a shield against short-term market volatility. It provides flexibility and transparency. Investment portfolios aredisclosed on a monthly basis and Funds NAVs are disclosed on a daily basis. It offers arange of fund options with different asset allocations meeting the requirement of policyholders with different risk appetite. Investment in ULIP is eligible for tax deductionof Rs 100000 under Section 80(C) of Income Tax Act as per current tax laws

What would be the time period over which one could expect favourable returnsfrom ULIPs?ULIPs are well suited for meeting your long-term financial goals. The premiums paid byinvestors (net of insurance charges) are invested in funds as mandated by thepolicyholders. These funds invest in market-linked instruments such as equity, bondsand government securities. Since the returns on ULIPs are market-linked, they toomight get impacted in short term. However, long-term returns do not get muchimpacted by such short-term volatilities. Over a long-term, one should expect favourable

returns from ULIPs.

How should one analyse ULIPs performance?To analyse how well your ULIP has fared, compare the returns with the fundsbenchmark and peer group. The peer group should be of funds with similar assetallocation, investment strategy and asset quality (ratings, market capitalization and


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diversification). For example, a fund with a 20 per cent equity and 80 per cent debtexposure should be compared against fund options with similar asset allocation only.

What is a benchmark? What is my funds benchmark?A benchmark is an index used by fund managers to compare the funds performance andportfolio risk. At BIRLA SUN LIFE INSURANCE, we use BSE100 as a benchmark forequity investments, while CRISIL Composite Bond Index, CRISIL Liquid Index or CRISILShort-Term Bond Index are used for debt investments.

How often does the BIRLA SUN LIFE INSURANCE investment team churn thefund portfolio and why?Being a life insurance company, all investments are undertaken with a long-term view.We conduct active fund management and sell stocks if the fundamentals of thecompany/sector changes, valuations become too stretched or some other investmentopportunity looks attractive in relative terms.

What is an asset classes?An asset class is a group of investment instruments such as equity, debt, cash, etc.,

which have similar investment risk and return profile. Equities comprise of investmentsin various company stocks and though contain high levels of risk, are the bestperforming asset over the long term. Debt investments mainly consist of fixed deposits,government securities, corporate debt, etc. These generate a fixed return and generallyface lower risk as compared to equities. Cash investments include saving deposits andshort term money market investments and are exposed to negligible risks.

What is a risk return profile?The risk-return profile is the relationship between the risk that an asset class is exposedto and the returns it generates. Generally, higher the risk involved in an asset class,higher is the return associated with it. For example, equity has the potential to generatehigher returns than debt, but at a higher risk. Cash on the other hand, though the safestasset class, generates the lowest returns. E.g. An individual who invested in the equitymarket in April-September 2009 would have generated a whooping 76% returns on hisinvestment but if he had invested in the entire Financial Year 2009 - 2010 he wouldhave incurred a loss on investment of -38%. Further, his investment would have grownat a Compounded Annual Growth Return (CAGR) of approx 23% had he invested for aperiod of 20 years ending in September 2009. On the other hand, savings in bank willgenerate a stable return of 3-4% per annum with no downside risk and no upsidepotential as well whereas value of cash kept at home without investing will keepshrinking over a longer period of time due to inflation.

How do I define my risk appetite?To determine your risk appetite you will have to consider several factors such as yourage, number of dependants, income, future goals, etc. Your risk appetite may notremain constant and change depending on your life stage and financial status.

Fund details/ Management


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Growth Fund

Investment Objective To build your capital and generate better returns at moderate level of risk, over a mediumor long-term period through a balance of investment in equity and de Benchmark CRISIL Composite BondIndex & BSE 100 on a proportionate basis

Rating Profile

Fund Management Charges 1.00% (per annum of fund value) Investment Strategy Generate better return withmoderate level of risk through active management of fixed income portfolio and focus on creating long termequity portfolio which will enhance yield of composite portfolio with low level of risk appetite. MaturityProfile


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Asset Allocation Debt Instruments, Money Market & Cash: 80% - 90%Equities & Equity Related Securities: 10% - 20%


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Sectorial Allocation


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Conclusion

This project has given us complete information about insurance fund management of BSLI. It has also helped us to know about the various products available in BSLI.

It also helps us to know the management expertise, how they manage the premium,their investment process and risk management. This also helps to create economic

development. This project will help us to forecast the future need of insurance fundmanagement.


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BIBLIOGRAPHY

From the Internet

www.birlasunlifeinsurance.com www.google.com www.yahoo.com

www.investopedia.com

From the Books

Birla Sun life Brochure
http://www.birlasunlifeinsurance.com/http://www.google.com/http://www.yahoo.com/http://www.investopedia.com/http://www.birlasunlifeinsurance.com/http://www.google.com/http://www.yahoo.com/http://www.investopedia.com/