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EXECUTIVE SUMMARY
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment managers of
Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the
Sun Life Financial Services Inc. of Canada. The joint venture brings together the Aditya
Birla Group's experience in the Indian market and Sun Life's global experience.
Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading
flagships of Mutual Funds business managing assets of a large investor base. Our
solutions offer a range of investment options, including diversified and sector specific
equity schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of
debt and treasury products and offshore funds.
Birla Sun Life Asset Management Company has one of the largest team of research
analysts in the industry, dedicated to tracking down the best companies to invest in.
BSLAMC strives to provide transparent, ethical and research-based investments and
wealth management services.
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INTRODUCTION TO INSAURANCE
Definition
There can be two approaches for defining insurance. One is functional approach other is
contractual approach.
Functional Definition
According to Encyclopedia Britannica, Insurance may be defined as a social device
where by a large group of individuals through a system of equitable contribution, may
reduce or eliminate measurable risk of economic loss common to all members of the
group
Contractual Definition
According to Justice Tindall, Insuranceis a contract in which a sum of money is paid to
the assured in consideration of insurersincurring the risk of paying a large sum upon a
given contingencies.
The risk becomes insurable if the following requirements are compiled with:
The insured must suffer financial loss if the risk operates
The loss must be measurable in money.
The object of the insurance contract must be legal.
The insured should have sufficient knowledge about the Risk he accepts.
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FUNDAMENTAL PRINCIPLES
The fundamental principles are:-
1. The Principle of Utmost Good Faith:-
The principle of utmost good faith, uberrimae fides (in Latin), literally
means perfect good faith or abundant good faith. The phrase is used to express that aninsu
rance contract must be in perfect good faith concealing nothing. The principle is mostly
discussed in the context of the duty of the insured towards the insured, though it is equally
applicable to the insurersduty towards the insured.
From the point of view of the insured, the principle of utmost good faith could formally bedefined as _A positive duty to voluntarily disclose, accurately and fully all facts material
to the subject matter being proposed, whether requested or not.
2. The Principle of Indemnity:-
The principle of indemnity, as applicable to general insurance policies, means that the
policyholder, after experiencing a loss, is before the loss. The policy indemnifies him or
guarantees that he would be insuring his assets and recovering more than the loss. This is
possible since the economic value of an asset at the time of the loss as well as the extent
of loss can be determined and compensation payable determined accordingly.
In case of life insurance, however, the economic value of a human life
cannot be measured precisely before death. It could in a fact be unlimited. Hence, lifeinsur
ance cannot strictly be a contract of indemnity. This does not, however, mean a person can
be granted life insurance for an unlimited amount.
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3. The Principle of Insurable Interest:-
The third major principle of insurance is that of insurable interest. The existence of
insurable interest isan essential ingredient of any insurance contract. Insurable interest is
the legal pre-requisite for insurance.
A common definition used for insurable interest is thelegal right to insure arising out of
financial relationship, recognized under law, between the insured and the subject matter of
insurance.
It can be seen that insurable interest has three essential elements:
i. There must be properly, right, interest, life or potential liability capable of being
insured.
ii. Such property, right, interest, life or potential liability must be the subject matter
of insurance.
iii. The insured must bear a legal relationship to the subject matter such that he
stands to benefit by the safety of the property, right, interest, life or Freedom of
liability. By the same token, he must stand to lose by any loss, damage, injury or
creation of liability.
4. The Principal of Subrogation:-
This is the forth principle that is peculiar to general insurance. Subrogation is the legal
right of the person who has paid for the damage caused by another to recover that
money from the ship-owner. Subrogation is thus the right of the insurance company
that pays the claim to recover the same from those who are responsible for causing the
loss. Contribution, in fact, is a corollary of the principle of indemnity.
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5. Principle of Contribution:-
The fifth principle that is peculiar to general insurance is Principle of
contribution. Contribution, again, is a corollary of the principle of indemnity. Contribution
implies that if the same property is insured with more than one insurance company, the
compensation paid by all the insurers together cannot exceed the actual loss suffered. That
is all the insurers would together indemnify the policyholder for the loss suffered and no
more. If he were to collect insurance money from all the insurance for the full value, this
would violate the principle of indemnity, as he would make a profit the loss.
Life Insurance
Life insurance (Life Assurance in British English) is a type of insurance. As in all
insurance, the insured transfers a risk to the insurer. The insured pays a premium and
receives a policy in exchange. The risk assumed by the insurer is the risk of death of the
insured.
How life insurance works
There are three parties in a life insurance transaction; the insurer, the insured, and theowner of the policy (policyholder), although the owner and the insured are often the same
person. For example, if John Smith buys a policy on his own life, he is both the owner and
the insured. But if Mary Smith, his wife, buys a policy on John's life, she is the owner and
he is the insured. The owner of the policy is called the grantee (he or she will be the
person who will pay for the policy). Another important person involved is thebeneficiary.
The beneficiary is the person or persons who will receive the policy proceeds upon the
death of the insured. The beneficiary is not a party to the policy, but is designated by the
owner, who may change the beneficiary unless the policy has an irrevocable beneficiary
designation. With an irrevocable beneficiary, that beneficiary must agree to changes in
beneficiary, policy assignment, or borrowing of cash value.
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The policy, like all insurance policies, is a legal contract specifying the terms and
conditions of the risk assumed. Special provisions apply, including a suicide clause
wherein the policy becomes null if the insured commits suicide within a specified time for
the policy date (usually two years). Any misrepresentation by the owner or insured on the
application is also grounds for nullification. Most contracts have a contestability period,
also usually a two-year period; if the insured dies within this period, the insurer has a legal
right to contest the claim and request additional information before deciding to pay or
deny the claim.
The face amount of the policy is normally the amount paid when the policy matures,
although policies can provide for greater or lesser amounts. The policy matures when the
insured dies or reaches a specified age. The most common reason to buy a life insurance
policy is to protect the financial interests of the owner of the policy in the event of the
insured's demise. Other reasons include estate planning and retirement. The owner (if not
the insured) must have an insurable interest in the insured, i.e. a legitimate reason for
insuring another persons life. The insurer (the life insurance company) calculates the
policy prices with intent to recover claims to be paid and administrative costs, and to
make a profit. The cost of insurance is determined using mortality tables calculated by
actuaries. Actuaries are professionals who use actuarial science which is based in
mathematics (primarily probability and statistics). Mortality tables are statistically based
tables showing average life expectancies. The three main variables in a mortality table are
age, gender, and use of tobacco. The mortality tables provide a baseline for the cost of
insurance.
The insurance company receives the premiums from the policy owner and invests them to
create a pool of money from which to pay claims, and finance the insurance company's
operations. Contrary to popular belief, the majority of the money that insurance
companies make comes directly from premiums paid, as money gained through
investment of premiums will never, in even the most ideal market conditions, vest enough
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money per year to pay out claims. Rates charged for life insurance increase with the
insured's age because, statistically, a people are more likely to die as they get older.
Since adverse selection can have a negative impact on the financial results of the insurer,
the insurer investigates each proposed insured (unless the policy is below a company-established minimum amount) beginning with the application, which becomes part of the
policy. Life insurance companies are never required by law to underwrite or to provide
coverage on anyone. They alone determine insurability, and some people, for their own
health or lifestyle reasons, are uninsurable. The policy can be declined (turned down) or
rated. Rating means increasing the premiums to provide for additional risks relative to that
particular insured.
Many companies use four general health categories for those evaluated for a life insurance
policy. These categories are Preferred Best, Preferred, Standard, and Tobacco. Preferred
Best means that the proposed insured has no adverse medical history is not under
medication for any condition, and his families (immediate and extended) have no history
of early cancer, diabetes, or other conditions. Preferred is like Preferred Best, but it allows
that the proposed insured is currently under medication for the condition and may havesome family history. Most people are in the Standard category. For example, a person
who would otherwise be in the Preferred Best category will be denied a policy if he or she
travels to a high risk country.
Upon the death of the insured, the insurer will require acceptable proof of death before
paying the claim. The normal minimum proof is a death certificate and the insurer's claim
form completed, signed, and oftennotarized.If the insured's death was suspicious and the
policy amount warrants it, the insurer may investigate the circumstances surrounding the
death, before deciding whether there is a legal obligation to pay the claim. Proceeds from
the policy may be paid in a lump sum or as anannuitypaid over time in regular recurring
payments for either for the life of a specified person or a specified time period.
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BIRLA SUN LIFE INSURANCE
COMPANY PROFILE
Birla Sun life Insurance
Corporate office-| employees- 133000+
Business- financial services | Establishment- 2000
Website-www.birlasunlife.com
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Details- It is financial and insurance company, a joint venture of Aditya Birla and Sun life
insurance. Company offers life insurance products including health, wealth and retrial
plans.
Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the AdityaBirla Group and Sun Life Financial Inc., a leading international financial services
organisation. The local knowledge of the Aditya Birla Group combined with the expertise
of Sun Life Financial Inc., offers a formidable value proposition to customers.
Sun Life Financial and its partners today have operations in key markets worldwide,
including India, Canada, the United States, the United Kingdom, Hong Kong, Philippines,
Japan, Indonesia, China and Bermuda. Sun Life Financial Inc. had assets under
management of over US$ 386.82 billion, as on 31 March 2007. Sun Life Financial Inc. is
a leading performer in the life insurance market in Canada.
BSLI in its five successful years of operations has contributed significantly to the growth
and development of the life insurance industry in India. It pioneered the launch of Unit
Linked Life Insurance plans amongst the private players in India. It was the first player in
the industry to sell its policies through the Bank assurance route and through the internet.
It was also the first private sector player to introduce a pure term plan in the Indian
market. This was supported by sales practices, which brought a degree of transparency
that was entirely new to the market. The process of getting sales illustrations signed by
customers, offering a free look period on all policies, which are now industry standards
were introduced by BSLI. All this has assisted the company in cementing its place
amongst the leaders in the industry in terms of new business premium income. The
company's current capital base is Rs.520 crore.
Being a customer centric company, BSLI has invested heavily in technology to build
world class processing capabilities. BSLI has covered more than one and a half million
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lives since inception and its customer base is spread across 100 cities in India. Birla Sun
Life Insurance (BSLI), one of the leading private life insurers in India today announced
the inimitable achiever, cricketer Kapil Dev as their corporate brand ambassador. The
cricketing supremo will be endorsing BSLI in all its marketing initiatives. Birla Sun Life
Insurance is a value-driven brand which has a national brand recall of 70 per cent. The
objective of appointing a brand ambassador is to grow its brand recall as it goes national
in its distribution reach and fuel business growth. As a brand ambassador, Kapil Dev will
play a key role in the brand and product marketing and promotional activities. BSLI has
always used an integrated marketing approach, which will be strengthened further.
Commenting on the association with Kapil Dev, Mr. S. K. Mitra, Director, Financial
Services, Aditya Birla Group and currently in charge of BSLI expressed, "The Birla Sun
Life Insurance business distribution network is national in nature covering more than 1000
points across the country .We have made our entry in several tier I and tier II towns. It is
therefore very important for the brand to connect at the grassroot level and create trust.
We therefore now have two strong connects our parent brand Birla and our brand
Ambassador Kapil Dev".
In a study conducted by BSLI, Kapil Dev connected extremely well with the life
insurance category and had high acceptance by the masses. Our survey suggests that he is
seen as a very good fit for the BSLI brand. He is very much loved and respected by a vast
majority of the population.
On 26 November 2006, Birla Sun Life was host the annual golf tournament at the
Chembur Golf Club in Mumbai where Kapil Dev was participates.
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VISION
To be a world class provider of financial security to individuals and corporates and to be
amongst the top three private sector life insurance companies in India
MISSION
To be the first preference of our customers by providing innovative, need based life
insurance and retirement solutions to individuals as well as corporates. These solutions
will be made available by well-trained professionals through a multi-channel distribution
network and superior technology.
Our endeavor will be to provide constant value addition to customers throughout their
relationship with us, within the regulatory framework. We will provide career
development opportunities to our employees and the highest possible returns to our
shareholders
Achievements of BSLI
1stto introduce ULIP fund options.
1st to launch illustrations so that customers understand the products better before
they buy.
1stto issue NAVs of funds for better transparency.
1stto disclose portfolio on a monthly basis.
1stto introduce FreeLook Periodand the same was made mandatory by IRDA for
all other Life Insurance Companies
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YEAR AWARDD FROM TITIE
2011 Golden Peacock Global Awards Secretariat Golden Peacock Award
2011 Internet Advertising Competition(IAC)Awards 2011
Best Insurance Integrated adcampaign (Not Jobs But
Passion campaign)
2011 Advertising Agencies Association of India &
Advertising Club Bombay
Bronze - Media Abby
Awards at Goa Fest 2011 as
Best Never Before use of
Media
2011 Advertising Agencies Association of India &
Advertising Club Bombay
Gold - Creative Abby
Awards at Goa Fest 2011 as
Direct marketing
Dimensional Mail
2010 APPIES 2010 - Asia Pacific Advertising &
Marketing Congress
Silver Medal & a letter of
appreciation for - Wealth
with Protection Solutions
campaign
2010 14th Annual Webby Awards 2010 Official Nominee - BSLI
Email marketing campaign
'Save Forest'
2009 Institute of Chartered Accountants of India
(ICAI)
ICAI Awards for Excellence
in Financial Reporting -
Silver in Insurance Category
2004 Outlook Money Awards 2004 Recruiting and Staffing Best
in Class Awards2004 Outlook Money Awards 2004 Best Life Insurer (Runner
Up) 2004 TROPHY
2005 The Indo-Canadian Business Chamber 'Successful Performance' for
4 years April 2005
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2005 The Mayor, David Miller - Toronto A letter sent to BSLI - A
Message
2004 Asia Insurance Review Sponsorship
Acknowledgement for - The
Asia Insurance Review
2012 The Institute of Chartered Accountants of India
(ICAI
'Gold Trophy' for Financial
Reporting
2012 The South Asian Federation of Accountants
(SAFA)
'Best Presented Accounts &
Corporate Governance
Disclosures Awards
2012 Golden Peacock Award Excellence in Corporate
Governance
2012 Effies Gold in the 'Services
category'
2012 Kaan awards Best use of Radio
2012 Asian Confederation of Businesses Best Employer Brand Award
2012 Golden Peacock HR Excellence Golden Peacock HR
Excellence Award
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SWOT ANALYSIS
STRENGTH:
Multi-channel distribution and one of the largest distribution
networks in India.
Implementing Six-Sigmaprocess.
Customer centric products and services.
Superior investment and risk management framework
1 Million Policies sold within 3 and half years.
Company has maximum number of MDRT as well as good number
ofHNIadvisors.
Training process of the company is very strong.
Different plan for different peoples
According to the change in surrounding environment like changes in customer
requirement
WEAKNESS:
COMPANY does not penetrate on the rural market at a time.
There is no plan for the low income group.
Fees for the advisor is high than the other company.
OPPORTUNITY:
Insurance market is very big, where company can expand its horizon in
insurance industry.
Though good investment and insurance it is easy to top Indian
customers.
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The huge insurance market (77%) is left so company has opportunity to
expand our products.
To associate with the more number of HNI.
THREATS:
OLD HABITS DIE HARD: Its still difficult task to win the confidence
of public towards private company.
The company is facing major threats from LIC -which is an only
government company.
Plans for all income groups are not available which can create adverse
effect later on the market share of the company.
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DETAILS OF PRODUCTS
Individual Life
Protection
Birla Sun Life Term Plan
Premium Back Term Plan
Saving
Birla Sun Life Insurance Gold-Plus
Supreme Life
Dream Plan
Classic Life Premier
Simply Life
Prime Life Premier
Prime Life
Life Companion
http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Protection/insplans_indiv_protection.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Protection/bsl_termplan.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Protection/bsl_termplan.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Protection/bsl_premiumterm.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Protection/bsl_premiumterm.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/insplans_indiv_savings.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_goldplus.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_goldplus.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_supremelife.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_supremelife.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_dreamplan.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_dreamplan.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_classiclifepremier.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_classiclifepremier.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_simplylife.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_simplylife.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_primelifepremier.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_primelifepremier.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_primelife.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_primelife.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_lifecompanion.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_lifecompanion.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_lifecompanion.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_primelife.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_primelifepremier.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_simplylife.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_classiclifepremier.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_dreamplan.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_supremelife.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/bsl_goldplus.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Savings/insplans_indiv_savings.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Protection/bsl_premiumterm.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Protection/bsl_termplan.aspxhttp://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/Individual/Protection/insplans_indiv_protection.aspx -
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Flexi Cash Flow
Flexi Save Plus
Flexi Life Line
Single Premium Bond
Retirement
Flexi Secure Life Retirement Plan II
Children
Children's Dream Plan
Rural
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Bima Kavach Yojana
Riders
Accidental Death and Dismemberment Rider
Term Rider
Critical Illness Rider
Waiver of Premium
Critical Illness Plus Rider
Critical Illness - Woman Rider
Retirement
Our Retirement Plans allow you to meet your expenses and build a nest
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egg, which gives you the freedom to live life to the fullest even after
retirement.
The post retirement years can be the best years of your life. Time to do things you couldn't
have done while you were working. A right financial planning makes your post retirement
years truly golden. Our Sun Life secure Life II assures you just that.
Birla Sun Life Insurance Co. LtdFollowing are the Life Insurance plans that Birla Sun life Insurance
Company Ltd.
1.)Birla Sun Life Insurance Term Plan - This plan can take care of your financial
commitments 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
cover promises you to refund the entire premium on maturity or death. Two options
are also there to choose 100% premium back or 125% premium back. Maximum term
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period for this plan is 20 years.
3.Birla Sun Life Insurance Guaranteed Bachat Plan - Its a non-participating
endowment plan offers you guaranteed returns and chance to earn survival benefit
from the 3rd year onwards. You can withdraw this benefit each tear or can use it as to
pay the premium dues.
4.Birla Sun Life Insurance Money Back Plus Plan - This is also a non-
participating endowmentplan, which gives you maturity and survival both benefits.
One remarkable point is that on every policy anniversary it increases your cover byan equal amount of your base premium.
5.Birla Sun Life Insurance Gold-Plus II - Its an investment plan offering nine-
funding option tochoose and 100% equity fund option also. Free unlimited switches
are given 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. Inthis 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
to buy an insurance plan, which you immediately can purchase just by providing
three health 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
plan providing 8-fund options to choose. It gives a choice of two death benefits.
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9.Birla Sun Life Insurance Dream Plan - Its a unit-linked policy, which provides
you guaranteed returns, 0% allocation charges, and option to double or triple the
guaranteed maturity.
10.Birla Sun Life Insurance Classic Life Premier - It will give you guaranteed
additions in theform of guaranteed units and a good choice of 8 investment funds
are also there. You are free to choose the term period of 10, 20, 30 or whole life.
11.Birla Sun Life Insurance Simply Life - It ensures a lifetime of tax-free
investments to fulfill theneeds of your dear ones. Its a market related plan provides
you a good death benefit amount.
12.Birla Sun Life Insurance Prime Life Premier - Its a single time investmentwith
top up options.It keeps you hassle free and provides you guaranteed returns at regular
intervals.
13.Birla Sun Life Insurance Prime Life - It is a single premium policy gives you
the benefit 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
sum premiumpayment at regular intervals. It will give you 3% guaranteed returns
on net policy charges.
15.Birla Sun Life Insurance Flexi Save Plus - This plan will give you the
choices of 3 fundoptions, maturity ages & guaranteed returns of 3%.
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16.Birla Sun Life Insurance Flexi Life Line - This would provide you a lifelong
cover till 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 the
opportunity to makeone time investment with no medical tests and will also give you
the facility of high entry age. Its a short term investment plan provides you the option
of 5 years or 10 years term period.
18.Birla Sun Life Insurance Freedom 58 - Its a non- participating ulip plan. Ithelps you accumulate your premiums and the investment return thereof into a
corpus of your retirement.
19.Birla Sun Life Insurance Flexi Secure Life Retirement Plan II - This will
provide you theoption 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,
which provides youguaranteed returns, 0% allocation charges, and option to double or
triple the guaranteed maturity.
Various Plans offered by LIC are as follows:
Endowment Assurance Plans
1.Jeevan Amrit: This plan is designed for a higher cover at a lower cost. In this plan
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premium paymentis limited to 3 or 4 or 5 years and the premium payable during the first
year is higher than the premiums payable in subsequent years.
2.New Janaraksha Plan: Is an Endowment Assurance plan that provides financial
protection against death throughout the term of plan. It pays the maturity amount on
survival to the end of the term.
3.Jeevan Mitra (Double Cover Endowment Plan): Is an endowment plan which takes
care of thefinancial needs even if death of the policyholder for the whole term of the plan.
4.Jeevan Mitra (Triple Cover Endowment Plan): Is an endowment plan where thrice
the Sumassured plus all bonuses on the basic sum assured to date is payable in a lump
sum upon the death of the life assured.
5.The Endowment Assurance Policy: This policy has provisions for the family of the
Life Assuredin event of his early death and also assures a lump sum at a desired age.
6.The Endowment Assurance Policy-Limited Payment: In this policy the payment of
premium canbe limited either to a single payment or to a term shorter than the policy.
Children Plans
1.Jeevan Anurag: Is plan designed for the children educational requirements. This plan
can be takenon the parents life. The basic sum assured is given immediately on the death
of the life assured during the term of the policy.
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Money Back Plan
1.Bima Bachat: Is a money-back policy which offers financial security and assurance to
the policyholder and his family. The policy holder has to pay only one premium.
2.Money Back-20 years: Is an endowment plan where periodic payments of partial
survival benefitsare paid during the term of the policy till the policy holder is alive. As
the policy name goes this plan 20% of the sum assured is payable after 5, 10, 15 years and
the balance 40% accrued bonus is payable at the 20th year.
3.Money Back 25 years: Is the same as the above plan only in this plan the 40% accrued
bonus ispayable at the 25th year.
Pension plans
1.New Jeevan Dhara - I: is a Deferred Annuity plans that allows the policyholder to
make provisionfor regular income after the selected term.
2.New Jeevan Suraksha - I: Is a deferred annuity plan.
3.Jeevan Nidhi: Is a deferred annuity plan with profits.
4.Jeevan Akshay - VI: By paying a lump sum amount this immediate annuity plan can
be bought.
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Unit Plans
1.Child Fortune Plus: Is a plan for children and to meet their educational needs. Itsa
unit linked planwith long term capital appreciation.
2.Fortune Plus : It is a unit linked assurance plan where premium payment term (PPT) is
5 years andthe premium payable in the first year will be 50% of total premium payable
under the policy.
3.Market Plus: Is a unit linked pension plan where after a specific period the pension is
paid.
4.Money Plus - I: Is a unit linked Endowment plan which has investment plus insurance
during theterm and you can pay regular premiums.
5.Profit Plus : It is a unit linked Endowment plan where the premium payment term
(PPT) is limited tosingle lump sum, or uniformly over 3, 4 or 5 years.
Whole Life Plans
1.Jeevan Anand: Is a combination of two plans- Endowment Assurance and Whole Life
plan.
2.Jeevan Tarang: This is a with-profits whole of life plan which provides for annual
survival benefit at a rate of 5 % of the Sum Assured after the chosen Accumulation
Period.
3.The Whole Life Policy: Is a plan mainly to provide for payment of sum assured plus
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PRODUCTS
Life is unpredictable. But in face of adversity, our responsibilities
towards our parents, children and loved ones need not be
compromised. Insurance planning equips you to smooth out the
uncertainties and adversities that life might send your way, so that
it offers a complete range of insurance products.
1. Protection Plans
2. Savings Plans
3.Child Plans
4. Investment Plans
5.Retirement Plans
6.Group Plans
7.Rural Plans
8.Plans for NRIs
9. Key man Plans
10.Riders
Insurance Plans
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BSLI offers Life Guard - a set of pure protection plans. Choose
from amongst three different product structures to insure your life
and provide total security to your family, at a very affordable cost.
Level Term Assurance with return of premium
On death the entire sum assured will be paid.
On maturity, all the premiums paid will be returned.
Level Term Assurance without return of premium
On death the entire sum assured will be paid.
No survival or ma turity benefits.
You can also enhance the above two policies by adding Accident &
Disability Benefit Rider and Waiver of Premium Rider (WOP).
Level Term Assurance - Single premium:
On death the entire sum assured will be paid.
No survival or maturity benefits
Protection Plans
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BSLI offers a variety of policies that give you the benefits of
protection and the opportunity to save for important assets orevents, like a home, a car or a wedding.
A regular premium unit-linked insurance plan with an assurance of
Capital Guarantee# with the added advantage of flexible liquidity
option. An ideal plan for long term planning with the benefit ofliquidity.
The key features of the plan are:
Flexibility to choose a specific level of protection (Sum
Assured), based on a multiple of the annual premium. You can
also choose the term of the plan. Flexibility to choose a premium payment term of 5, 7 or 10
years for a maturity term of 10, 15 or 20 years respectively.
Flexibility to choose a specific level of protection (Sum
Assured), based on a multiple of the annual premium.
At the end of the term, the higher of the value of units or the
guaranteed value* is paid. On death, Sum Assured along with
the higher of value of units or the guaranteed value is payable.
Facility to make withdrawals from the 6th policy year
onwards till the end of the policy term. Every year withdraw
up to 10% of the value of units.
Additional credits payable as a percentage of the initial annual
premium are paid along with the death or maturity benefit.
Savings Plans
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Additional insurance for 10 years after the maturity, for an
amount of 50% of the Sum Assured.
Flexibility to make additional investment with the help of the
top-up facility.
Flexibility to increase / decrease your annual premium amount
Facility of Automatic Premium Payment- With this facility
you can take a temporary break from premium payment. **
Total transparency with the premium allocations, and other
charges declared upfront.
The guaranteed value of the unit fund is the value of all
invested premiums (premiums net of all charges) along with
the declared bonus interests.
Total transparency with the premium allocations, and other charges
declared upfront.
The capital guarantee is applicable only on the invested
premium and the declared bonus interests
** With Automatic Premium Payment facility, you can avail a
temporary break from premium payment for a maximum of 1
year. This facility is available once if the premium paying term is
less than 15 years and twice, if it is 15 years or more.
You can also enhance your policy by adding Accident &
Disability Benefit Rider, Waiver of Premium Rider and Critical
Illness Rider.
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Presenting Premier Life The Preferred plan for the Preferred
Customer. The key features of the plan are:
Limited premium payment option: Choose from among a 3, 5, 7
or 10 year premium paying term.
Choice of sum assured: Choose a sum assured, which is a
minimum multiple of 1 and a maximum multiple of 25 times the
annual contribution.
Additional allocation of units on a periodic basis.
Facility to top-up your investment any time you have surplus
funds.
Choose from among four funds, based on your investment
objective and risk appetite.
Choice to switch between investments options (4 free switches
every policy year).
Flexibility to decrease your sum assured.
Add-on riders to protect you against any eventuality.
Loans against the policy.
Protection
Choose a specified level of protection (available only with Life
Time).
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Two levels of Sum Assured to choose from (available only with
Life Time II).
Flexibility to increase or decrease your sum assured .
Add-on riders to protect you against any eventuality.
Savings
Flexibility to increase or decrease your contribution.
Facility of Premium Holiday, wherein the policy continues even
if there is a temporary break in the payment of annual
contribution (available only with Life Time).
Facility of Automatic Cover Continuance, wherein the policy
continues even if there is a temporary break in the payment of
annual contribution
Facility to top-up your investment any time you have surplus
funds.
Additional allocation of units on a periodic basis.
Loans against the policy.
Investment:
Choose from among four funds, based on your investment
objective and risk appetite.
Choice to switch between investments options (4 free switches
every policy year).
You can also enhance your policy by adding Critical Illness Rider,
Major Surgical Assistance Rider, Accident & Disability Benefit
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Rider, Accident Benefit Rider (available only with Life Time) and
Waiver of Premium Rider
.
An insurance plan that gives added protection, savings and multiple
options, all in one!
The flexibility to choose your premium contribution.
The flexibility to choose amongst three levels of cover (in theform of sum assured) for the same amount of total annual
contribution.
The flexibility of shifting between the three levels of cover, as
you require.
The flexibility of receiving your maturity proceeds as a lump
sum or in equal annual installments over 3 or 5 years.
You can also enhance your policy by adding Variety of Riders
An insurance plan that gives you added protection, savings,
multiple options, plus the power of liquidity.
The flexibility to choose your premium contribution.
The flexibility to choose amongst three levels of cover (in the
form of sum assured) for the same amount of total annual
contribution.
The flexibility of shifting between the three levels of cover, as
you require.
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The flexibility of receiving your maturity proceeds as a lump
sum or in equal annual installments over 3 or 5 years.
The flexibility of withdrawing up to 10% of the accumulated
value of your policy, after the first 5 policy years.
You can also enhance your policy by adding Variety of Riders
An ideal plan for those who want to accumulate funds on a regularbasis while enjoying insurance protection.
Guaranteed Benefits: Guaranteed additions @ 3.5% of the Sum
Assured, compounded annually for the first 4 years of the policy.
Extended Life Cover: An extended cover for 5 years after the
maturity of the policy, for 50% of the sum assured, at no extra
cost.
Maturity Benefit: At the end of the term, the policyholder
receives the full sum assured, the guaranteed additions and the
vested bonuses.
Death Benefit: The beneficiary receives the sum assured, the
guaranteed additions and the vested bonuses in case the life
assured were to meet with an unfortunate event. In case the life
assured is aged 7 years or less, the basic premium paid will be
returned.
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As a responsible parent, you will always strive to ensure a hassle-
free, successful life for your child. However, life is full of
Uncertainties and even the best-laid plans can go wrong. Heres
how you can give your child a 100% safe and assured tomorrow,
whatever the uncertainties. Smart Kid is especially designed to
provide flexibility and safeguard your childs future education and
lifestyle, taking all possibilities into account. Choose from amongst
a basket of 4 plans:
Smart Kid regular premium
Smart Kid unit-linked regular premium
Smart Kid unit-linked regular premium II
Smart Kid unit-linked single premium II
All these plans offer you:
Financial Benefits: Regular payments at critical stages in
your childs life, like Board examinations, Graduation and
Post-graduation.
Total peace of mind, even if you are n ot around
Child Plans
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Sum Assured is paid immediately: Ensures that your loved
ones stay financially secure, even in your absence.
All future premiums are waived: Ensuring that your family
is not financially burdened in your absence.
Policy benefits continue: The educational benefits of the
policy continue, ensuring that your child can realize his or her
dreams without any hassles.
Development Allowance: Smart Kid guarantees regular
income to secure your childs educational career and also
ensures his or her all-round development, for a nominal
additional amount. The Income Benefits Rider takes care of
this through an annual payment of 10% of the sum assured, to
your child, till the maturity of the policy, in the unfortunate
event of the death of the parent. All Smart Kid plans can be
enhanced with the Accident & Disability Benefit Rider and
Income Benefit Rider.
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Life Link II is a unique plan that combines the security
of a life insurance policy with the opportunity of enjoying high
returns on your investments, without the market risks compromising
on the protection of your family!
Death Benefit: The Sum Assured under the product has 2 options,
either 500% of the initial premium or 105% of the initial premium.
In the event of an unfortunate death, the beneficiary will receive
higher of the value of units or the initial death benefit, less any
withdrawals.
Withdrawal Benefit: One can make partial withdrawals from theaccumulated value of the policy after completion of one policy year.
Flexibility: Choose from four fund options, based on your
investment objective and risk appetite. If at a later stage your
financial priorities change, you can switch between the various fund
options, absolutely free, 4 times a year.
Investment Plans
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Life Expectancy has been rising rapidly and today you can
expect to live longer than your earlier generations. For you, this
increase will mean a longer retirement life, stretching into a couple
of decades. BSLI Retirement Solutions that combine the best of
insurance and investment. These solutions are developed to ensureyour peace of mind for the years to come.
1. Why plan for retirement?
2. How much should I set aside for retirement?
3. The impact of inflation on your retirement savings
4. Why plan early?
5. About Annuities
Why plan for retirement?
For too many people, the joy of retirement after years of hard work
is eclipsed by the financial uncertainties that it brings. Despite all
the planning and saving, you can never sure whether your money
will last a lifetime. Retirement planning offers a way to ensure a
more enjoyable, stress free tomorrow. A prudent plan will ensure
that increasing life expectancy, higher inflation and increasing
taxes do not eat away into your hard earned savings.
Retirement Plans
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How much must I set aside for retirement?
To ensure a comfortable retired life, you would be wise to invest
money into additional avenues like pension plans. How much youneed to invest can be answered by answering some questions such
as:
1.How long do you have to save that amount before retirement ?
2.Where can you invest your retirement money?
3.How much risk are you willing to take on your investments?
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Group Superannuation Plan : A flexible scheme (defined benefit
and defined contribution) to provide a retirement kitty for each
member of the group.
Group Term Assurance: BSLI flexible group term solution helps
provide affordabl e cover to me mbers of a group. The cover could be
uniform or based on designation/rank or a multiple of salary, and
can be extended to all employees between the ages of 18 and 65
years. The benefit under the policy is paid on the event of the
members death to the beneficiary nominated by the member. It is a
one-year renewable policy where one master policy covers all
proposed employees comprising the group, with a minimum group
size of 25 persons. New members can join the group and outgoing
members can leave the group at any point during the policy term.
Group Gratuity Plan: BSLI group gratuity plan helps employers
fund their gratuity obligation in a scientific manner. Employers can
avail of the tax benefits as applicable to approved gratuity funds.
The plan can also be customized to structure schemes that can
provide benefits beyond the statutory obligations.
Group Superannuation Plan: BSLI Superannuation Scheme (for
both Defined Benefit and Defined Contri bution funds) offers
substantial benefits to both employers and employees. The employer
and employee can avail of tax benefits applicable to an approved
superannuation trust. The scheme will provide for a retirement fund
for each participating employee. An employee would be able to
choose from various annuity options or opt for partial commutation
of corpus at retirement.
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BSLI Rural Products are designed to meet the needs of the rural
consumers. These products offer the following features:
1. Low and Affordable Premiums
2. Life Cover
3. Savings Option
4. Hassle free procedure
BSLI offers 2 specially designed rural plans.
a) BSLI Endowment Plan
b) BSLI - Regular Premium
BSLI Endowment Plan:
BSLI offers the following features:
Life Cover and Savings
Regular Premiums
Age at entry 18 - 45 Yrs.
Premium Mode Half Yearly / Yearly
Term 5, 10, 15 Yrs.
Sum Assured Rs.5,000 -20,000
Premium / Year Rs. 507 - 553 ( SA: Rs.10,000)
Maturity/Death benefit Sum Assured
Rural Plans
http://www.iciciprulife.com/ipru/ruralplan1.jsp#ahttp://www.iciciprulife.com/ipru/ruralplan1.jsp#ahttp://www.iciciprulife.com/ipru/ruralplan1.jsp#ahttp://www.iciciprulife.com/ipru/ruralplan1.jsp#ahttp://www.iciciprulife.com/ipru/ruralplan1.jsp#bhttp://www.iciciprulife.com/ipru/ruralplan1.jsp#bhttp://www.iciciprulife.com/ipru/ruralplan1.jsp#bhttp://www.iciciprulife.com/ipru/ruralplan1.jsp#a -
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BSLI - Regular Premium:
BSLI is a regular premium policy with the following features:
Individual policy
Only Life cover
Term - 3 & 5 Yrs.
Age independent premium
Age at entry 18 - 45 Yrs.
Sum Assured Single
Premium / Year Rs 50 200
Maturity/Death benefit Rs.5,000 - 20,000
Death Benefit Sum Assured
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NRI Plans:
Being away from India doesn't mean you have to compromise the
safety and security of your loved ones. In fact, your savings from
your time overseas can be easily canalized to meet your family's
needs - now and in the future. So, whether its your dream to retire
in your hometown; to secure funds for your children's education; or
to build assets, BSLI has a range of solutions that can be
customized to meet your needs.
Monopoly in the insurance sector.
WHY INSURANCE I N I NDIA:
Only 22% of the insurance population has been extended cover. Market
penetration is low and the potential to exploit is high. Insurance premium per capita is very low.
Lack of comprehensive social system benefit and welfare means that
demand for pension products is high.
Huge middle class of approximately 300 Million.
Existing insurance company score low on customer service front.
Plans for NRIs
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FINANCIAL STATEMENT OF BIRLA SUN INSURANCE
REVENUE STATEMENT
Form L-1- A- RA
Birla Sun life Insurance Company Limited
Registration Number: 109 dated 31st January 2001
Condensed Revenue Account for the quarter ended 30th June, 2013
Policyholders' Account (Technical Account)
(Amounts in thousands of Indian Rupees)Audited Audited
Particulars FormQuarter ended
30th June 2013
Quarter ended
30th June 2012
Premiums earned Net
(a) Premium L-4 9,212,639 11,303,238(b) Reinsurance ceded (350,992) (347,939)
(c) Reinsurance accepted - -
Sub Total 8,861,647 10,955,299
ncome rom nvestments
(a) Interest, Dividend & Rent - Gross 3,032,684 3,036,709
(b) Profit on Sale / Redemption of Investments 2,457,377 1,801,549
(c) (Loss) on Sale / Redemption of Investments (2,367,366) (2,169,898)
(d) Transfer/Gain ( Loss) on revaluation / Change in Fair value 2,090,518 894,029
(e) Gain / (Loss) on Amortisation (737) (11,771)
Sub Total 5,212,476 3,550,618
Other Income
(a) Contribution from the Shareholders' Account 851,699 752,316(b) Others (Interest etc.) 96,686 75,358
Sub Total 948,385 827,674
Total (A) 15,022,508 15,333,591
Commission L-5 311,578 619,609
Operating Expenses related to Insurance Business L-6 2,494,753 2,858,186
Provision for doubtful debts - -
Bad Debts written off - -
Provision for Tax (including earlier years) - -
Provision (other than taxation)
(a) For diminution in value of investments (net) - -
(b) Others - -
Total (B) 2,806,331 3,477,795
Benefits paid (Net) L-7 9,874,573 6,727,418Interim Bonuses Paid - -
Change in valuation of liability in respect of life policies
(a) Gross 1,173,695 1,109,193
(b) Fund Reserve (186,183) 2,140,741
(c) Premium Discontinuance Fund - Linked 904,164 410,349
(d) (Amount ceded in Re-insurance) (896,582) (135,312)
(e) Amount accepted in Re-insurance - -
Total (C) 10,869,667 10,252,389
Surplus (D) = (A) - (B) - (C) 1,346,510 1,603,407
Appropriations
Transfer to Shareholders' Account 1,891,318 1,984,306
Transfer to Other Reserve - -
(Release from) / Transfer to Funds for Future Appropriation (544,808) (380,899)
Total (D) 1,346,510 1,603,407
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PROFIT AND LOSS ACCOUNT
Form L-2-A- PL
Birla Sun life Insurance Company LimitedRegistration Number: 109 dated 31st January 2001
Condensed Profit and Loss Account for the quarter ended 30th June, 2013
Shareholders' Account (Non - Technical Account)
(Amounts in thousands of Indian Rupees)
Audited Audited
Quarter ended Quarter ended
Particulars 30th June 2013 30th June 2012
Amounts transferred from Policyholders' Account (Technical Account) 1,891,318 1,984,306
Income from Investments
(a) Interest, Dividend & Rent - Gross 280,115 231,794(b) Profit on sale / redemption of investments 63,883 9,282
(c) (Loss) on sale / redemption of investments (7,361) (29)
(d) Gain / (Loss) on Amortisation (1,413) (410)
Other Income - -
Total (A) 2,226,542 2,224,943
Expense other than those directly related to the insurance business 19,119 1,136
Bad debts written off - -
Provision (other than taxation)
(a) For diminution in the value of investment (net) - -
(b) Provision for doubtful debts(c) Others
(d) Contribution to the Policyholders' Account
--
851,699
--
752,316
Total (B) 870,818 753,452
Profit before tax
Provision for taxation
1,355,724
-
1,471,491
-
Profit after tax 1,355,724 1,471,491
Appropriations
(a) Balance at the beginning of the period (12,424,921) (13,762,293)(b) Interim dividends during the period
(c) Proposed final dividend
(d) Dividend distribution tax(e) Transfer to reserves / other accounts
-
-
--
-
-
--
Loss carried forward to Balance Sheet (11,069,197) (12,290,802)
Earning Per Share (Basic and Diluted), Face Value of Rs. 10 (in Rs.) 0.70 0.75
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Form L-3-A-BS
Birla Sun life Insurance Company Limited
Registration Number: 109 dated 31st January 2001
Condensed Balance Sheet as at 30th June, 2013
(Amounts in thousands of Indian Rupees)
Audited Audited
Particulars
As at
30th June 2013
As at
30th June 2012
Sources of Funds
Shareholders' funds:
Share Capital 19,012,080 19,695,000
Reserves and Surplus 3,089,075 4,800,000
Credit/(Debit) / Fair Value Change Account 1 1,669
Sub Total 22,101,156 24,496,669
Borrowings - -
Policyholders' Funds:
Credit/(Debit) Fair Value Change Account 2,087 2,701
Policy Liabilities 20,577,473 15,292,701
Provision for Linked Liabilities
Funds for discontinued policies
(i) Discontinued on account of non-payment of premium
184,792,295
2,954,576
181,306,926
848,288
(ii) Others - -Credit/(Debit) Fair Value Change Account (Linked) 6,341,833 1,760,075
Total Linked Liabilities 194,088,704 183,915,289
Sub Total 214,668,264 199,210,691
Funds for Future Appropriation
- Linked Liabilities 1,550,869 3,577,971
Total 238,320,289 227,285,331
Application of Funds
Investments
Shareholders' 11,958,326 11,677,587
Policyholders' 23,110,589 20,232,713
Assets Held to Cover Linked Liabilities 194,088,704 183,915,289
Loans 278,953 231,780
Fixed Assets 310,440 377,658
Current Assets
Cash and Bank Balances 4,150,652 4,435,829
Advances and Other Assets 3,000,826 2,414,992
Sub - Total (A) 7,151,478 6,850,821
Current Liabilities 8,003,111 7,666,468
Provisions 1,644,287 624,851
Sub - Total (B) 9,647,398 8,291,319
Net Current Assets (C) = (A-B) (2,495,920) (1,440,498)
Miscellaneous Expenditure
(To the extent not written off or Adjusted ) - -
Debit Balance in Profit and Loss Account (Shareholders' Account ) 11,069,197 12,290,802
Total 238,320,289 227,285,331
Contingent liabilities
Sr No Particulars As at 30th June 2013 As at 30th June 2012
1
2
3
4
5
6
7
Partly paid-up investments
Claims, other than against policies, not acknowledged as debts by the Company
Underwriting commitments outstanding Guarantees given
by or on behalf of the Company Statutory demands /
liabilities in dispute, not provided for
Reinsurance obligations to the extent not provided for in the accounts
Others *
Nil
25,961
Nil
Nil
Refer Note Below
Nil
40,387
Nil
25,961
Nil
Nil
Refer Note Below
Nil
167,674
* Represents potential liability to the Company (net of reinsurance) in
respect of cases filed against the Companys decision of repudiation
of death claims and customer complaints.(Total Liability is of Rs.
248,042/- out of which Rs. 99,216/- is provided in thebooks duringthe quarter)
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MARKET STRUCTURE
Data released by insurance sector regulator IRDA shows that the first
year premium of the life insurers for the period of December, 2010 is
again predominantly in favor of LIC. Herein mentioned are some
statistics given by IRDA regarding the individual single premium of
several life insurers in December 20101:-
1. Bajaj Allianz - 77.26 crore
2. ING Vyasa - 2.58 crore
3. Reliance Life - 80.26 crore
4. SBI life - 248.54 crore
5. Tata AIG - 14.02 crore
6. HDFC standard - 136.72 crore
7. ICICI prudential - 251.97 crore
8. Birla Sun Life - 9.73 crore
9. Aviva - 21.57 crore
10. Max New York - 25.15 crore
11. Met Life - 33.86 crore
12. Shriram Life - 44.90 crore
13. IDBI federal - 21.11 crore
14. Star Union Dai-ichi - 44.98 crore
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15. LIC - 1774.43 crore
These are some top companies and there premium collected in December 2010
which clearly depicts that LIC has lucrative market dominance and other privateplayers have a small market share. Such figures explain that LIC is a dominant
entity and can influence competition in market negatively due to the regulation
of the regulatory body and the government.
Talking about the number of lives covered under group single premium upto
December, 2010 for some major companies are as follows according to the data
released by IRDA on basis of data submitted by these insurance companies:-
1. Bajaj Allianz - 105972
2. Reliance life - 508352
3. SBI Life - 239465
4. Tata AIG - 57543
5. HDFC Standard - 175291
6. ICICI Prudential - 1793883
7. Kotak Mahindra - 359582
8. Max New York - 1495603
9. Shriram Life - 216448
10. LIC - 27020588
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Apart from these companies like Aegon Religare and Birla Sun life has 959 and
995 lives covered upto December 2010. This is evident in itself to prove my
point that knowing or unknowingly but the regulation in the insurance sector is
giving an undue advantage to LIC and leading to unfair competition. The top 5
life insurance companies in India control 85% of the market-share while the
remaining dozen are still struggling to setup their operation. If we see the entire
market amongst private players only excluding LIC in life insurance sector we
would see there is hardly any private player which has a grip over the market.
Fig: - market split up of private life insurers only excluding LIC
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DATA ANALYSIS AND INTERPRETATIONAge Group of the Respondents
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Nature of Family
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Annual Income
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The Role of Investment for Successful Life
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Familiarity with Insurance Products
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Preferences for Investment Options
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Reason for Investment Options
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Insurance Policy Holders
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Rating Birla Sun Life Insurance Plans
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Performance Level of the Company
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4) Comparison between BSLIs Retirement plan and LICsNew Jeevan
Suraksha plan.
In BSLI plan entry age is 18-80 years. In LIC plan entry age is 18-70 yrs.
In BSLI plan vesting age is 10-40 yrs.
from entry age (Max. 90yrs.)
In LIC plan vesting age is 50-79 yrs.
In BSLI plan min. premium is 9600
p.a.
In LIC plan min. premium is 3000 p.a.
Premium paying frequency is same i.e. yearly, half yearly, quarterly, and
monthly
Death Benefits:
In BSLI plan the unfortunate event of death of the policyholder the nominee
will receive the higher of:
75% of the base premium and all renewal base premiums paid. OR the
surrender value at the time plus all accumulated survival benefits.
In LIC plan
If death occurs within 10 years - 3% (interest on all premium given)
Between 11 to 20 years 4%
After 20 years 5%
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COMPLAINT AGAINST BIRLA SUN LIFE INSURANCE
Dear Sir/Madam
Please treat this letter as a formal complaint against Birla Sun Life Insurance
Company, for not giving my surrender money on time and not taking my
complaints seriously. I want to draw your kind attention towards this issue that I
have surrendered my Policy no. 001248952 on 9th Oct. 2010 at 11: 39 am in
Birla Sun lifes Kamla Nagar Branch & they says me that I've received
surrendered amount in 10 days but I dont received so I call theircustomer
care on 20th Oct. & they says me that they received my policy documents on
19th when I ask them that I surrendered on 9th she says me that mail
that acknowledgement slip to them so i do so then I received call from their
back office on 24th October that they received my documents on 21th October
& if I surrendered on 9th then I have to go to the branch & talk to BOE after
that I go to the branch & their BOE talk with them & lodged my Complaint.
Complaint No. is 018-916-127 they assured me that Ive receive my amount in
3-4 days but I didnt received notice date. I again call them many times after
that but I've not received any satisfied reply from them they r just told me again
& again that I've received my amount in 2-3 days but I dont know that these 2-
3 days when will come. so please guide me what should I do to get my money.
Sir I'll be very thankful to you if you take this matter & solve my problem
because I need moneyurgently due to some family problems. I am sending thatacknowledgement letter with date & time stamp pls. find attached with this
mail.
Regards
Ravi
9818775750
Policy No. 001248952 Birla Sun LifeComplaint No. 018-916-127 Dated: 24-10-2010
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CONCLUSION
The market potential for private insurance companies is found to be greater in
the long run as most of the Indians are of the opinion that, private insurance
companies would be able to preform well in the future. The private and foreign
insurance companies have to take immediate steps in appointing more number
of agents and\or advisors in addition to the employees as it has been found out
that agents are the best channels to reach the general public regarding selling of
insurance products. The private and foreign insurance companies have to
concentrate on the factors like Prevention of Loss, Assured Returns and
Long Term Investment. They can also focus on an insurance amount of RS 1-
2 lakhs with money back policyhence, the market has potential. The private
and foreign companies that are taking immediate steps can tap it easily and
rapidly.
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WEBILOGRAPHY
http://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attach
ments/723/Form-L-1.pdf
http://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attach
ments/724/Form-L-2.pdf
http://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attach
ments/726/Form-L-3.pdf
http://insurance.birlasunlife.com/Pages/Individual/About-
Us/Awards.aspx
http://www.slideshare.net/rennymp/project-at-birla-sun-life
http://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/723/Form-L-1.pdfhttp://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/723/Form-L-1.pdfhttp://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/724/Form-L-2.pdfhttp://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/724/Form-L-2.pdfhttp://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/726/Form-L-3.pdfhttp://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/726/Form-L-3.pdfhttp://insurance.birlasunlife.com/Pages/Individual/About-Us/Awards.aspxhttp://insurance.birlasunlife.com/Pages/Individual/About-Us/Awards.aspxhttp://www.slideshare.net/rennymp/project-at-birla-sun-lifehttp://www.slideshare.net/rennymp/project-at-birla-sun-lifehttp://insurance.birlasunlife.com/Pages/Individual/About-Us/Awards.aspxhttp://insurance.birlasunlife.com/Pages/Individual/About-Us/Awards.aspxhttp://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/726/Form-L-3.pdfhttp://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/726/Form-L-3.pdfhttp://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/724/Form-L-2.pdfhttp://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/724/Form-L-2.pdfhttp://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/723/Form-L-1.pdfhttp://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/723/Form-L-1.pdf