PREFACE

I am Pleased to present the project Report on the different insurance

companies in india before my respected readers. It is a humble attempt
from my part to judge the both banks plans.
This study deals with a number of topics that will help the reader
understand and learn about systematic investment plan.
The research starts with a short Introduction of systematic investment plan
followed by the line of objective and research Methodology.
Next chapter deals with assigned sip of both banks followed by the data.
Then come the conclusions suggestions and limitations of the research
reports.
Language of reports is simple lucid. Attempts have been made to arrange
the subject matter in a systematic and well-knite style. Efforts have also
been made to deal with all topics precisely and gently.

Pratibha
BBA Vth sem

ACKNOWLEDGEMENT
I would like to express my appreciation and
gratitude to various people who have shared
their valuable time and made possible this
project
,through
their
direct
indirect
cooperation.

Mr.chandra shekhar (Faculty)govt, autoomus

girls p.g collage for allowing me to work on
this project and provide necessary help.

I thank my respected faculties ,dear

friend & colleagues ,who help me in every
possible ways , support me and encouraged
me to explore new dimensions.

PRATIBHA
BBA Vth Sem

CERTIFICATE
The project report titled A Report on the different insurance companies in
india is prepared by Pratibha under the guidance and supervision of Mr.
Chaitanya kaushakiya , for partial fulfilment of the Degree B.B.A.

Signature of supervisor

Signature of Examiner

..

Signature of H.O.D.

DECLARATION
I declare that Project report titled A PROJECT REPORT ON DIFFERENT
TYPES OF INSURANCE COMPANIES my own work conducted under
the supervision of Mr. Chandra shekhar Faculty of Govt. Autonomous Girls
PG College of Excellence, Sagar M.P. to the best of my knowledge the
report does not contain any work, which has been submitted for the award
of any Degree any where.

PRATIBHA
BBA Vth SEM

RESEARCH METHODOLOGY
WHAT IS RESEARCH METHODOLOGY?
It is the science that tells the method of doing research. It mainly consists
of following steps:

Development research design

Determining the data collection method
Development sampling plan
Conducting field work

Research in common parlance refers to a search for knowledge one can

also define research as a specific topic.

The word research has been derived from French word researcher means
to search.

DEFINITION OF RESEARCH METHODOLOGY

Research may be defined as a careful investigation of enquiry specially

through search for new fact in any branch of knowledge in a technical
sense research comprise defining problems, formulating hypothesis or
suggested solutions; collecting ,organizing,& evaluation data; making

Deduction &reaching conclusion and at last carefully testing the conclusion

to determine whether they fit the formulating hypothesis.

RESEARCH DESIGN:

Research design is the conceptual structure within which research is

conducted . It constitutes the blueprint for collection. Measurements and
analysis of data .The design use for carrying out this research is
descriptive.
DATA COLLECTION:

Types of Data

Primary Data: Data observed or collected directly from first hand

experience is called as primary data.

Secondary Data- Published data and the data collected in the past or other
parties is called secondary data.

I had used secondary data in this analysis.

DATA SOURCE:

The sources of collection of secondary data are:

Books
Websites
Magazine
Brochure

INTRODUCTION
Life insurance
Life insurance or life assurance is a contract between the policy
owner and the insurer, where the insurer agrees to pay a
designated beneficiary a sum of money upon the occurrence of
the insured individual's or individuals' death or other event, such
as terminal illness or critical illness. In return, the policy owner
agrees to pay a stipulated amount at regular intervals or in lump
sums. There may be designs in some countries where bills and
death expenses plus catering for after funeral expenses should be
included in Policy Premium. In the United States, the predominant
form simply specifies a lump sum to be paid on the insured's
demise.
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 the owner 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
the beneficiary. 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.
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. The insurance
proceeds would pay for funeral and other death costs or be
invested to provide income replacing the deceased's wages.
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 an 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. In practice, these mortality tables are used in
conjunction with the health and family history of the individual
applying for a policy in order to determine premiums and
insurability. The current mortality table being used by life
insurance companies in the United States and their regulators
was calculated during the 1980s. There is currently a measure
being pushed to update the mortality tables by 2008.
The current mortality table assumes that roughly 2 in 1,000
people aged 25 will die during the term of coverage. This number
raises roughly quadratic ally to about 25 in 1,000 people for those
aged 65. So in a group of one thousand 25 year old males with a
$100,000 policy, a life insurance company would have to, at the
minimum, collect $200 a year from each of the thousand people
to cover the expected claims. 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 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 companyestablished minimum amount) beginning with the application,
which becomes part of the policy. Group Insurance policies are an
exception. This investigation and resulting evaluation of the risk is
called underwriting. Health and lifestyle questions are asked, and
the answers are dutifully recorded. Certain responses by the
insured will be given further investigation. Life insurance
companies in the United States support The Medical Information
Bureau, which is a clearinghouse of medical information on all
persons who have ever applied for life insurance. As part of the
application, the insurer receives permission to obtain information
from the proposed insured's physicians. 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 family
(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 have some family history. Most people
are in the Standard category. Profession, travel, and lifestyle also
factor into not only which category the proposed insured falls, but
also whether the proposed insured will be denied a policy. 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 often notarized. 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
an annuity paid over time in regular recurring payments for either
for the life of a specified person or a specified time period.

What is Insurance?
Insurance is a contract for reducing losses from accident incurred
by an individual party through a distribution of the risk of such
losses among a number of parties. It is a system under which the
insurer, for a consideration usually agreed upon in advance,
promises to reimburse the insured or to render services to the
insured in the event that certain accidental occurrences result in
losses during a given period. It thus is a method of coping with
risk. Its primary function is to substitute certainty for
uncertainty as regards the economic cost of 1ossproducing events is concerned. Thus, In return for a specified
consideration, the insurer undertakes to pay the insured or his
beneficiary some specified amount in the event that the insured
suffers loss through the occurrence of a contingent event covered
by the insurance contract or policy. By pooling both the Financial
contributions and the "insurable risks" of a large number of

1.

2.

3.

4.

policyholders, the insurer is typically able to absorb losses

incurred over any given period much more easily than would the
uninsured individual. Insurance relies heavily on the "1aw of
1arge numbers." In large homogeneous populations it is
possible to estimate the normal frequency of common events
such as deaths and accidents. Losses can be predicted with
reasonable accuracy, and this accuracy increases as the size of
the group expands. From a theoretical standpoint, it is possible to
eliminate all pure risk if an infinitely large group is selected. The
risks must be such that pooling is both feasible and
advantageous to the two parties.
From the standpoint of the insurer, an insurable risk must meet
the following requirements:
The objects to be insured must be numerous enough and
homogeneous enough to allow a reasonably close calculation of
the probable Frequency and severity of looses
The insured objects must not be subject to simultaneous
destruction. For example, if all the buildings insured by one
insurer are in an area subject to flood, and a flood occurs, the loss
to the insurance underwriter may be catastrophic
The possible loss must be accidental in nature, and
beyond the control of insured. If the insured could cause the loss,
the element of randomness and predictability would be
destroyed.
There must be some way to determine whether a loss has
occurred and how great that loss is. This is why insurance
contracts specify very definitely what events must take place,
what constitutes loss, and how it is to be measured.
From the viewpoint of the insured person, an insurable risk is one
for which the probability of loss is not so high as to require
excessive premiums. What is "excessive" depends on individual

circumstances, including the insured's attitude toward risk. At the

same time, the potential loss must be severe enough to cause
financial hardship if it is not insured against.

Insurable risks include: Losses to property resulting from fire, explosion, windstorm, etc;
Losses of life or health; and the legal liability arising out of use of
automobiles,
Occupancy
of
buildings,
employment,
or
manufacture.

Uninsurable risks include:

Losses resulting from price changes and competitive conditions in
the market.
Political risks such as war or currency debasement are
usually not insurable by private parties but may be insurable by
governmental institutions.
Very often contracts can be drawn in such a way that an
"uninsurable risk" can be turned into an "insurable" one through
restrictions on losses, redefinitions of perils, or other methods.

SCOPE & IMPORTANCE OF STUDY

To determine and analyzed the Market Potential of the Birla
Sun Life Insurance Company in Moradabad City.
To study the overall scenario currently prevailing in the market,
namely, the per capital income, purchasing power, occupation,
literacy rate, etc.
To study and determine the competitor position in the market.
To give benefit to the people as well as to earn profit.
To do a performance evaluation of Birla Sun Life Insurance
products in comparison on with other insurance companies

INSURANCE HISTORY
INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an
open competitive market to nationalization and back to a
liberalized market again. Tracing the developments in the Indian
insurance sector reveals the 360 degree turn witnessed over a
period of almost two centuries.
A brief history of the Insurance sector
The business of life insurance in India in its existing form started
in India in the year 1818 with the establishment of the Oriental
Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in
India are:
1912: The Indian Life Assurance Companies Act enacted as the
first statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and
non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the
Insurance Act with the objective of protecting the interests of the
insuring public.

1956: 245 Indian and foreign insurers and provident societies

taken over by the central government and nationalized. LIC
formed by an Act of Parliament, viz. LIC Act,
1956, with a capital contribution of Rs. 5 core from the
Government of India. 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.

Some of the important milestones in the general

insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first
company to transact all classes of general insurance business.
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.
1968: The Insurance Act amended to regulate investments and
set minimum solvency margins and the Tariff Advisory Committee
set up.
1972: The General Insurance Business (Nationalization) Act, 1972
nationalized the general insurance business in India with effect
from 1st January 1973. 107 insurers amalgamated and grouped
into four companys 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.

Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance
Secretary and RBI Governor R.N. Malhotra, was formed to
evaluate the Indian insurance industry and recommend its future
direction. The Malhotra committee was set up with the objective
of complementing the reforms initiated in the financial sector. The
reforms were aimed at creating a more efficient and competitive
financial system suitable for the requirements of the economy
keeping in mind the structural changes currently underway and
recognizing that insurance is an important part of the overall
financial system where it was necessary to address the need for
similar reforms
In 1994, the committee submitted the report and some of the key
recommendations included:
i) Structure
Government stake in the insurance Companies to be brought
down to 50%
Government should take over the holdings of GIC and its
subsidiaries so that these subsidiaries can act as independent
corporations.
All the insurance companies should be given greater freedom to
operate
ii) Competition
Private Companies with a minimum paid up capital of Rs.1bn
should be allowed to enter the industry
No Company should deal in both Life and General Insurance
through a single entity
Foreign companies may be allowed to enter the industry in
collaboration with the domestic companies

 Postal Life Insurance should be allowed to operate in the rural

market
Only one State Level Life Insurance Company should be allowed
to operate in each state
iii) Regulatory Body
The Insurance Act should be changed
An Insurance Regulatory body should be set up
Controller of Insurance (Currently a part from the Finance
Ministry) should be made independent
iv) Investments
Mandatory Investments of LIC Life Fund in government securities
to be reduced from 75% to 50%
GIC and its subsidiaries are not to hold more than 5% in any
company (There current holdings to be brought down to this level
over a period of time)
v) Customer Service
LIC should pay interest on delays in payments beyond 30 days
Insurance companies must be encouraged to set up unit linked
pension plans
Computerization of operations and updating of technology to be
carried out in the insurance industry. The committee emphasized
that in order to improve the customer services and increase the
coverage of the insurance industry should be opened up to
competition. But at the same time, the committee felt the need
to exercise caution as any failure on the part of new players could
ruin the public confidence in the industry. Hence, it was decided
to allow competition in a limited way by stipulating the minimum
capital requirement of Rs.100 cores. The committee felt the need
to provide greater autonomy to insurance companies in order to
improve their performance and enable them to act as

independent companies with economic motives. For this purpose,

it had proposed setting up an independent regulatory body.

The Insurance Regulatory

Development Authority

and

Reforms in the Insurance sector were initiated with the passage of

the IRDA Bill in Parliament in December 1999. The IRDA since its
incorporation as a statutory body in April 2000 has fastidiously
stuck to its schedule of framing regulations and registering the
private sector insurance companies.
The other decisions taken simultaneously to provide the
supporting systems to the insurance sector and in particular the
life insurance companies were the launch of the IRDAs online
service for issue and renewal of licenses to agents. The approval
of institutions for imparting training to agents has also ensured
that the insurance companies would have a trained workforce of
insurance agents in place to sell their products, which are
expected to be introduced by early next year. Since being set up
as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private
sector 12 life insurance and 6 general insurance companies have
been registered.
.Life Insurers:

Life Insurance Corporation of India (LIC) Popular Products:

Endowment
Assurance
(Participating)
and
Money
Back
(Participating). More than 80% of the life insurance business is
from these products.
General Insurers:

General

Insurance

Corporation

of

India

(GIC) Fire

and

Miscellaneous insurance businesses are predominant. Motor

Vehicle insurance is compulsory.
GIC had four subsidiary companies, namely with effect from
Dec'2000, these subsidiaries have been de-linked from the parent
company and made as independent insurance companies.

The Oriental Insurance Company Limited

The New India Assurance Company Limited,

National Insurance Company Limited

United India Insurance Company Limited

In year 2000-2001 some companies is entered in

insurance sector. There are sixteen company is entered. Ten
companies are entered in Life insurance and other six companies
are entered in General Insurance. These companies are...
Life Insurers -:

HDFC Standard Life Insurance Company Ltd.

Max New York Life Insurance Co. Ltd.

ICICI Prudential Life Insurance Company Ltd.

Kotak Mahindra Old Mutual Life Insurance Limited

Birla Sun Life Insurance Company Ltd.

Tata AIG Life Insurance Company Ltd.

SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Private Limited

Bajaj Allianz Life Insurance Company Limited

Metlife India Insurance Company Pvt. Ltd.

General Insurers -:

Royal Sundaram Alliance Insurance Company Limited.

IFFCO Tokio General Insurance Company. Ltd.

TATA AIG General Insurance Company Ltd.

Bajaj Allianz General Insurance Company Limited.

ICICI Lombard General Insurance Company Limited.

Reliance General Insurance Company Limited.

Need For Life Insurance -:
The need for life insurance comes from the need to
safeguard our family. If you care for your familys needs you will
definitely consider insurance.
Today insurance has become even more important due to
the disintegration of the prevalent joint family system, a system
in which a number of generations co-existed in harmony, a
system in which a sense of financial security was always there as
there were more earning members.
Times have changed and the nuclear family has emerged.
Apart from other pitfalls of a nuclear family, a high sense of
insecurity is observed in it today besides, the family has shrunk.
Needs are increasing with time and fulfillment of these needs is a
big question mark.
Insurance provides a sense of security to the income
earner as also to the family. Buying insurance frees the individual
from unnecessary financial burden that can otherwise make him
spend sleepless nights. The individual has a sense of consolation
that he has something to fall back on.

INTRODUCTION OF ADITYA BIRLA

GROUPThe Aditya Birla Group is Indias first truly multinational
corporation, Global in vision, rooted in values, the group is driven
by performance ethic pegged on value creation for its multiple
stakeholders. A US$ 24 billion conglomerate, with a market
capitalization of US$ 24 billion and in the league of Fortune 500, it
is anchored by an extraordinary belonging to over 25 different
nationalities. Over 50 percent of its revenues flow from its
operations across the world.
The Aditya Birla group is US$ 30 billion conglomerate which gets
60% of its revenues from outside India. The group is a major
player in all the industry sectors it operates in. The Aditya Birla
Group has been adjudged the best employer in India and among
the top 20 in Asia by the Hewitt-Economic Times and Wall Street
Journal Study 2007. The origins of the group lie in the

conglomerate once held by one of India's foremost industrialists

Mr. Ghanshyam Das Birla.
The Groups products and services offer distinctive solutions
worldwide .Its 85 state-of-the-art manufacturing units and sect
oral services span 20 countries India, Thailand, Laos, Indonesia,
Philippines, Egypt, Canada, Australia, China, USA, UK, Germany,
Hungary, brajil, Italy, France, Luxembourg, Switzerland, Malaysia
and Korea.
The group has been adjudged the best employer in India and
among the top 20 in Asia by the Hewitt-Economic Times and Wall
street journal Study 2007.
In India the group holds a frontrunner position as
Indias leading copper producer
A premier branded garments player
The second largest player in viscose filament yarm.
The second largest player in the chlor alkali sector.
Among the top five mobile technology players
A leading player in Life insurance and asset management .

Sun life financial

Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth
accumulation products and services to individuals and corporate
customers. Chartered in 1865, Sun Life Financial and its partners
today have operations in key markets worldwide, including
Canada, the United States, the United Kingdom, Ireland, Hong
Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.

As of March 31, 2007, the Sun Life Financial group of companies

had total assets under management of CDN$446 billion
BIRLA SUN LIFE ASSET MANGEMENT COMPANY LTD
A collaboration of the US $ 8.3 Billion Aditya Birla group and the
CDN $ 400 billion Sun life financial of Canada brings together
global and Indian expertise to the area of financial services.
Birla Sun Life Asset Management Company Ltd., the
investment managers of Birla Mutual fund, is a joint venture
between the Aditya Birla Group and the Sun Life Financial
Services Inc. of India. The joint venture brings together the Aditya
Birla Groups experience in the Indian market and Sun Lifes
global experience.
Since its inception in 1994, Birla Mutual fund has emerged as one
of Indias Leading Mutual Funds managing assets of a large
investors base. The fund offers a range of investment options,
which include 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.

2. BIRLA SUN LIFE INSURANCE

Birla Sun Life Insurance Co. Ltd. is a joint venture between Aditya
Birla Group, an Indian multinational corporation, and Sun Life
Financial Inc, a leading global insurance company. Birla Sun Life
Insurance is distinguished as the first company in the sector of
financial solutions to begin Business Continuity Plan. This
insurance company has pioneered the unique Unit Linked Life
Insurance Solutions in India. Within 4 years of its launch, BSLI
became one of the leading players in the industry of Private Life
Insurance
Scheme.

Birla Sun Life Insurance believes in passion, integrity, speed,

commitment and seamlessness. The mission of the company is to
help people with risk management. It also helps in managing the
financial situation of firms as well as individuals. Here is given a
comprehensive list of policies and products offered by Birla Sun
Life Insurance Co. Ltd.
Birla
Sun
Life
Insurance
pioneered
the
unique Unit
Linked Insurance Solutions in India.
Within 4 years of its launch, BSLI has cemented its position as a
leading player in the private life insurance industry.
There has been focus on Investment Linked Insurance Products to
maintain leadership in product innovation.
Multi distribution Channels- Direct Sales force, Alternative
Channels and Group offering convenient channels of purchase to
customers
Web enabled IT system for superior customer services.
First to have issued policies over the internet.
Corporate governance and a high degree of transparency in all
business practices and procedures.
VisionTo be a world class provider of financial security to individuals and
corporate and to be amongst the top three private sectors life
insurance companies in India.
MissionTo be the first preference of our customers by providing
innovative, need based life insurance and retirement solutions to
individuals as well as corporate. These solutions will be made
available well trained professionals through a multi channel
distribution network and superior technology.

It will provide constant value addition to customers

throughout their relationship with us, within the regulatory
framework.
Values Integrity
Commitment
Passion
Seamlessness
Speed

PRODUCTS
Insurance Plans

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 the best that life has to offer, secure in the knowledge that
your beloved ones are well provided for.
BSLI 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. Keyman Plans
10. Riders

Protection Plans
Life Guard
bsli offers Lifeguard - 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 maturity benefits.
You can also enhance the above two policies by adding Accident
& Disability Benefi t 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 benefi ts
saving Plans
bsli off ers a variety of policies that give you the benefi ts
of protection and the opportunity to save for important
assets or events, like a home, a car or a wedding.
Premier Life
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.

You can also enhance your policy by adding Critical Illness
Rider, Accident & Disability Benefit Rider.
Life Time
Presenting Life Time unit linked plans that meets your
changing needs over a lifetime. These solutions have been
developed to meet your savings, protection and investment needs
at every stage in life.
Protection
Choose a specified level of protection (available only with
Lifetime).
Two levels of Sum Assured to choose from (available only with
Lifetime 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
Rider, Accident Benefit Rider (available only with Life Time) and
Waiver of Premium Rider
Secure Plus
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 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.
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
Cash Plus
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.
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
Save n Protect

An ideal plan for those who want to accumulate funds on a

regular basis while enjoying insurance protection.
Guaranteed Benefi ts: 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 Benefi t: At the end of the term, the policyholder
receives the full sum assured, the guaranteed additions and the
vested bonuses.
Death Benefi t: The beneficiary receives the sum assured, the
guaranteed additions and the vested bonuses incase 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.
You can also enhance your policy by adding Critical Illness
Rider , Major
Surgical
Assistance
Rider , Accident
&
Disability Benefi t Rider , Waiver of Premium Rider (WOP)
Child Plan
As a responsible parent, you will always strive to ensure a hasslefree, 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 Benefi ts: Regular payments at critical stages in
your childs life, like Board examinations, Graduation and Postgraduation.
Total peace of mind, even if you are not around
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 benefi ts 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 Benefit 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 SmartKid plans can be enhanced with the Accident &
Disability Benefi t Rider and Income Benefi t Rider . You
can also an Accident Benefi t Rider to a Smart Kid Regular
Premium policy, and a Waiver of Premium Rider (WOP) to
Smart Kid unit-linked regular premium policy.

BIRLA SUN LIFE INSURANCE GOLD

PLUS
Don't we always wish for that something more? A bigger house, a
plush set of wheels, holidays in exotic lands. Here's something
that makes sure you get all that and much more. Presenting the
Birla Sun Life Insurance Gold-Plus Plan - a plan unlike any other. It
covers your life while giving you an opportunity to grow your
investments for the medium term.
DETAILS
An opportunity to grow your investments for medium term.
Policy terms 8 years.
Paying period 3 years
The policyholder has an option to reduce the annualized policy
premium in the 2nd and 3rd year subject to a minimum
annualized premium of Rs.10,000 per year.
Top Up premium Minimum Rs. 5000
Liquidity through withdrawals and surrender
Withdrawals after 3 policy years, Min Rs. 5000,two partial
withdrawals are free in a year.
Surrender can be surrendered anytime during the policy term
but will be paid after three policy years (if surrendered in first 3
policy yrs). Surrender charge is zero after 3rd yr.
Entry age 18 to 70 yrs
Minimum Premium: Rs10, 000
Minimum sum assured: 5 x Annual premium.
Maximum sum assured (multiple of annual premium)
Age

1829

3034

3539

4044

4549

5054

5559

6070

Gold
plus
44
multip
le

38

30

21

14

10

NAME OF THE PLAYER MARKET SHARE (%)

LIC

82.3

ICICI PRUDENTIAL

5.63

BIRLA SUN LIFE

2.56

BAJA ALLIANZ

2.03

SBI LIFE

1.80

HDFC STANDARD

1.36

TATA AIG

1.29

MAX NEW YORK

0.90

AVIVA

0.79

OM KOTAK MAHINDRA

0.51

ING VYASA

.37

AMP SANMAR

0.26

METLIFE

0.21

Unit Link Bonds

A unit linked bond is a lump sum investment plan that gives you
access to various investment markets throughout the world, via a
wide range of professionally managed funds. These funds have
varying objectives and levels of risk.
The underlying make up of the unit linked bond depends on its
investment objectives. This determines the type of stocks and
shares in which it invests. Each Investment Linked Bond offers the
option to invest for growth, income or both, you can select the
option which best matches your own needs.

5 STEPS TO SELECTING THE RIGHT ULIP

Unit Linked Insurance Plans (ULIPs) were always seen as
a 'wonder product' that simultaneously fulfilled an individual's
needs for investment and insurance.
However, the recent downswings in the markets have forced
investors to do a rethink. Very often it was poor selection that was
responsible for the investors' woes. Here is a 5-step strategy for
investing in ULIPs.
Understand the concept of ULIPs
Try to do as much homework as possible before investing in an
ULIP. This way you will know what you are getting into and won't
be faced with unpleasant surprises at a later stage.
Experience suggests that many a time people do not realize what
they are getting into (in fact we have been approached by several
people who wanted to cancel the ULIPs they had been coerced
into taking by unscrupulous agents). Gather information on ULIPs,
the various options available and understand their working.
Read the literature available on ULIPs on the Web sites and
brochures circulated by insurance companies.
Focus on your requirement and risk profile
Identify a plan that is best suited for you (in terms of allocation of
money between equity and debt instruments). Your risk appetite
should play an
important role in the plan you choose.
So if you have a high-risk appetite, go in for a more aggressive
investment option and vice-a-versa. Opting for a plan that is lopsided in favors of equities when you are a risk-averse individual
might spell disaster for you (this is true in most cases currently).
Compare ULIPs of different insurance companies
Compare products of the leading insurance companies.
Enquire about the
premium payments as ULIPs work on

minimum premium basis as opposed to sum assured in the case

of conventional insurance policies.
Check the fund's performance over the past six months. Find out
how the debt and equity schemes are Performing and how steady
the performance has been. Enquire about the charges you will
have to pay. In ULIPs the costs involved are a big deciding factor.
Ask about the top-up facility offered by ULIPs i.e. additional lump
sum investments you can make to increase the savings portion of
your policy.
The companies give you the option to increase the premium
amounts, thereby providing you with the opportunity to gainfully
utilize surplus funds at your disposal.
Enquire about the number of times you can make free switches
(i.e. change the asset allocation of the money in your ULIP
account) from one investment plan to another.
Some insurance companies offer you free switch for a 2-year
period while others do so only for 1 year.
Go for an experienced insurance advisor
Select an advisor who is not only professional and informed, but
also independent and unbiased. Also enquire whether he has
serviced clients like you.
When your agent recommends a ULIP of X company ask him a few
product-related questions to test him and also ask him why the
other products should not be considered.
Insurance advice at all times must be unbiased and independent
and your agent must be willing to inform you about the pros and
cons of buying a particular plan.
His job should not just begin by filling the form and end after he
deposits the cheque and gives you the receipt. He should keep a
track of your plan and inform you on a regular basis. The key is to
go for an advisor who will offer you value-added products.

Does your ULIP offer a minimum guarantee?

In market linked product if your investment's downside can be
protected, it would be a huge advantage. Find out if the ULIP you
are considering offers a minimum guarantee and what costs have
to be borne for the same. This will enable you to make an
informed choice.
Will unit linked risk products continue to rule?
Unit linked risk plans are doing roaring business agreed but if the
recent reports are any indication a shake up is on the cards. The
mutual fund industry is all set to get aggressive to counter
competition from the insurance industrys unit linked risk
products. For mutual funds the unit linked insurance products
launched by life insurance companies are an encroachment on
their territory. Consider this: Around 80 per cent of the premium
income of life insurers has come in through unit-linked plans in
2004 thanks to the boom in the equity markets.
Which means mutual fund companies are losing out on a huge
market that would have otherwise been theirs? To put an end to
such a situation they are toying with the idea of aggressively
publicizing its products through celebrity endorsements which
mutual funds feel will give a never-before fillip to its unit linked
schemes.
Unit linked insurance products launched have been doing brisk
business and insurers have been coming out with several such
products with slight variations to suit the changing needs of the
customers. These products are investment avenues that provide
market related returns to the investor with an element of
insurance thrown in. For the customer the attraction of market
related returns with insurance is an attractive option. On the
contrary though mutual fund companies also have unit-linked
products what is absent is the insurance cover.

But the grouse of mutual funds is that they have to adhere to

stringent regulations that are absent for insurance companies
when the products are almost similar. While for insurance
companies it is not mandatory to disclose the various expenses
related to unit linked risk products such as expense ratio and
brokerages among others, for mutual fund companies it is
mandatory.
At a glance the pros and cons:
Pros
Cons
The value of the bond
You'll usually have to
can go down as well as up
invest a minimum amount of
You can invest in a premium p.a. that varies from
number of different funds company to company e.g.
within the bond
HDFC- Std life has a min.
They are run by expert premium of Rs.10,000.p.a.

You'll usually have to

fund managers
They are free from invest for at least 5 years.
personal capital gains tax.
Unit Link Investment Plans of HDFC- Standard Life
Insurance Company Ltd.
Before we discuss the plans in detail lets be accustomed to
certain common terms like:
SA- Sum Assured
It is the amount for which a person is insured, so it becomes the
minimum amount, which has to be returned to the insured as per
the terms of the policy.
LA - Life AssuredHe/she is the person who has taken the insurance cover.
Premium

These are the installments payable by the LA as against the SA.

He can either make monthly, half-yearly & yearly or even one
time payment is allowed.
HDFC Standard Life has 3 Unit Link Investment Plans
UNIT LINKED YOUNG STAR PLAN
UNIT LINKED ENDOWMENT PLAN
UNIT LINKED PENSION PLAN
UNIT LINKED YOUNG STAR PLAN
The plan is affordable, customised to your needs and above all,
enables you to realise your dreams for your child. This plan is well
suited for the value-conscious customer, and above all, for every
loving parent. The plan can also be chosen by grandparents, other
relatives or any adult for the benefit of a child
What is the Unit Linked Young Star Plan?
HDFC Unit Linked Young Star Plan is designed to provide a lump
sum to the child at maturity. It also provides financial security to
the child in the future, even in case of the insured parent's
unfortunate death during the policy term. The Unit Linked Young
Star Plan also gives the option of additional protection against the
six common critical illnesses.
Your premiums are invested in units of the investment funds of
your choice, based on the prevailing unit prices. On maturity the
value of the units will be paid. On death (or critical illness, if
chosen) the selected basic sum assured is paid, and the policy
continues until maturity. Following a valid death or critical illness
claim, we will pay the future premiums (at the level originally
chosen at inception) into your policy, as and when they would
have fallen due.
Premiums

You agree to pay a level premium regularly, either quarterly, halfyearly or annually, throughout the term of the policy. The
minimum premium amount is Rs. 10,000 each year.
To facilitate increased investment, we allow additional single
premium top-ups at any time. The minimum single premium topup is Rs. 5,000
Premiums can be paid by cash, cheque or demand draft.
Choose your Investment Funds
The policy is fully unitised with a range of funds to match your
needs and approach to risk. (By risk we mean the likely volatility
in the value of units in the fund.) Each investment fund is
composed of units. All the units in a fund are identical. You can
choose from the following funds:
Liquid fund
The Liquid fund invests 100% in bank deposits and high quality
short-term money market instruments. The fund is designed to be
cash secure and has a very low level of risk; however unit prices
may occasionally go down due to the use of short-term money
market instruments. At inception, investments up to 20% can be
allocated to this fund.
Secure Managed fund
The Secure Managed fund invests 100% in Government Securities
and Bonds issued by companies or other bodies with a high credit
standing, however a small amount of working capital may be
invested in cash to facilitate the day-to-day running of the fund.
This fund has a low level of risk but unit prices may still go up or
down.
Defensive Managed
15% to 30% of the Defensive Managed fund will be invested in
high quality Indian equities. The remainder will be invested in
Government Securities and Bonds issued by companies or other

bodies with a high credit standing. In addition, a small amount of

working capital may be invested in cash to facilitate the day-today running of the fund. The fund has a moderate level of risk
with the opportunity to earn higher returns in the long term from
some equity investment. Unit prices may go up or down.
Balanced Managed
30% to 60% of the Balanced Managed fund will be invested in
high quality Indian equities. The remainder will be invested in
Government Securities and Bonds issued by companies or other
bodies with a high credit standing. In addition a small amount of
working capital may be invested in cash to facilitate the day-today running of the fund. The fund has a higher level of risk with
the opportunity to earn higher returns in the long term from the
higher proportion it invests in equities. Unit prices may go up or
down.
Growth fund
The Growth fund invests 100% in high quality Indian equities. In
addition a small amount of working capital may be invested in
cash to facilitate the day-to-day running of the fund. The fund has
a higher level of risk with the opportunity to earn higher returns in
the long term from the investment in equities. Unit prices may go
up or down.
The past performance of any of the funds is not necessarily an
indication of future performance.
There are no investment guarantees on the returns of unit linked
funds.
None of the funds participate in the profits of HDFC Standard Life
Insurance Company Limited or any of its policyholder funds.
Switching of funds.
You can switch your existing investments from your any of your
unit linked funds, to any other available unit linked fund. You can

also give us a premium redirection instruction to redirect future

premiums to different unit linked funds.
What are the Benefits?
There are 2 different options available
1.
Life Option
This option consists of a Maturity Benefit and a Death Benefit.

The Maturity Benefit will pay the value of the unit-linked fund
at the end of the policy term.

The Death Benefit will pay the basic Sum Assured on death
of the life assured during the policy term. Following payment of
this benefit, no further premiums are due from the policyholder.

Following a valid death claim, we will pay future premiums

on your behalf, as and when they become due. The level of
premium will be that chosen by you at inception of the policy.

2.

Life and Health Option

This option consists of a Maturity Benefit, a Death Benefit and an
Extra Health Benefit.

The Maturity Benefit will pay the value of the unit-linked fund
at the end of the policy term.

The Death Benefit will pay the basic Sum Assured on death
of the life assured during the policy term. Following payment of
this benefit, no further premiums are due from the policyholder
and the Extra Health Benefit will lapse without value.

The Extra Health Benefit will pay the basic sum assured on
diagnosis of any one of six critical illnesses during the policy term.
Following payment of this benefit, no further premiums are due
from the policyholder and the Death Benefit will lapse without
value. The illnesses covered under this benefit are cancer,
coronary artery by pass graft surgery, heart attack, kidney
failure, major organ transplant (as recipient) and stroke.

Following a valid death or critical illness claim, we will pay

future premiums on your behalf, as and when they become due.
The level of premium will be that chosen by you at inception of
the policy.
Extra Life and Health Option
This option pays the same benefits as the Life and Health Option
but, should death occur within the policy term as the result of an
accident, an extra benefit equal to the Sum Assured will be paid.
SURRENDERING THE POLICY
The policyholder can surrender the policy at any point of time
during the contract term. The amount payable will be the unitised
fund value after applying additional surrender charges mentioned
below.
Accessing the money
You can make lump sum withdrawals from you funds provided the
fund balance after withdrawal and charges does not fall below the
Sum Assured. The minimum withdrawal amount is Rs. 10,000.
Discontinuity of Premiums
This product has a grace period of 15 days for the payment of
each premium after the initial premium.
If you stop paying premiums, before you have paid 3 years of
annual premiums, we will cancel you policy and return to you the
value of your unitised fund, less cancellation charges.
If, after three years, you are unable to pay the premiums, you
have the option to make the policy paid-up, provided the policy
has accumulated sufficient policy value. Currently, this amount
will be Rs. 15,000.
If you make your policy paid up you will continue to be protected
according to the benefits you selected. To provide this cover, we

will continue to collect our usual charges on each monthly charge

date. It is important to note that if no further premiums are paid,
this may reduce the value of your fund over time, or even exhaust
it completely.
A paid-up policy can be reinstated to premium paying status at
any point of time in the future.
If the fund value of a paid-up policy falls below Rs. 15,000 we will
cancel the policy and return to you the fund value, less
cancellation charges.

Tax Benefits
Premiums paid under this plan are eligible for tax benefits under Section 88 of the Income Tax Act,
1961.

Charges
Company deduct charges from the policy to cover their costs.
A percentage of each premium is invested to buy units, this percentage is called the Investment
Content Rate.

THE RATES ARE AS FOLLOWS:

Premium paid

Investment Content Rate (ICR)

Regular - Year 1

73%

Regular - Year 2

73%

Regular - Year 3+

99%

Regular Premium Increases

99%

Single Premium Top-Up

99%

The unit price each day will include a fund management charge.
This charge is 0.80% of the fund value per annum taken on a daily
basis.
A flat fee of Rs 15 per month will be deducted by cancellation of
units on each monthly charge date. This will be proportioned
across funds according to the fund holdings at the time of
cancellation of units.
Risk benefits (for death sum assured, critical illness, and
accidental death) will be charged for by cancelling units on each
monthly charge date, based on the persons age at that time.
We charge neither for premium redirections nor for switches but
we may do so in the future.
We do not charge for altering the regular premium amount
(including making a policy paid-up and reinstating a paid-up
policy), but we may do so in the future.
On cancellation of the policy before 3 years of regular premiums
have been paid, we will charge 25% of the outstanding premiums
due during this 3-year period.

OTHER COMPANY PROFILE

Major insurance company share in market
LIC

82.3

ICICI PRUDENTIAL

5.63

BIRLA SUN LIFE

2.56

BAJA ALLIANZ

2.03

SBI LIFE

1.80

HDFC STANDARD

1.36

TATA AIG

1.29

MAX NEW YORK

0.90

AVIVA

0.79

OM KOTAK MAHINDRA

0.51

ING VYASA

.37

AMP SANMAR

0.26

METLIFE

0.21

AVIVA LIFE INSURANCE

Kal Par Control Lifesaver
Life Saver is designed to meet your specific long-term saving
needs such as education and wedding costs for your
children, with the added reassurance of life cover to meet
those costs in the unfortunate event of your death before the
policy matures. lifesaver ensures availability of a lump sum
fund to you on
your survival at the end of the policy
term.
What is life Saver?
Life Saver is a unitized fixed term, protection cum savings
plan.
Lifesaver provides cover against death as well as
accidental death/disability or critical illness.
Lifesaver can be purchased on any life between 18 to 65
years and for any term subject to a minimum of 5 years and
the age of the insured not exceeding 70 years at maturity.
However, for any rider cover the maximum entry age is 55
years.
The minimum premium is As.3, 500 for yearly, As.2, 000
for half-yearly, As.1, 000 for quarterly and As.350 for
monthly frequency of premium payment.
On payment of each premium, units are allocated to the
unit account at the purchase price of the unit at the date of

allocation. Policy value is determined by multiplying the total

number of initial and accumulation units held in the unit
account by the selling price of the unit. The units purchased
with the first year's premium are called Initial Units and units
purchased with second and subsequent years' premium and
additional single premiums are called Accumulation Units.

INVESTMENT OPTIONS
Lifesaver offers four investment funds:

With Profit funds

Objective
Provides a
guarantee that the
selling price of the
units will never fall.
The unit value of
this fund is
increased by crediting bonuses on
daily. Compounding
basis. A final bonus,
if any, may also be
payable at maturity,
death or at the time
of surrender .The
fund provides
investment security
to your capital.
Composition (Range )
Debt securities : 70
% -100 %
Equities : 0-20 %
Money market and
cash : 0-10 %

Unit Linked Fund

Secure Fund

Growth Fund

Balanced Fund

Progressive return
on your investment
by investing higher
element in debt
securities, with a
minimum exposure
to equalities

High capital growth

by investing higher
element of assets in
the equity market.

Capital growth by
availing
opportunities in debt
and equality
markets and
providing you a
good balance
between risk and
return.

Debt securities : 60
% -100 %
Equities : 0-20 %
Money market and
cash : 0-20 %

Debt securities :
0% -50%
Equities : 30-85%
Money market and
cash : 0-20 %

Debt securities : 50
% -90 %
Equities : 0-45 %
Money market and
cash : 0-10 %

ICICI PRUDENTIAL LIFE

INSURANCE
Open an account with a minimum contrition of:
Rs 60,000 per annum for annual premium payment
Rs.30,000 per half-year for half yearly premium payment
Rs. 5,000 per month for Monthly premium payment.
Asset Allocation

Fund
Maxi miser II
Balancer II
Protector II
Preserver

Asset Mix
Equity and Related Securities : Max 100 %
Debt, Money Marker and Cash :Max : 25%
Equity and Related Securities : Max 40 %
Debt, Money Marker and Cash :Max : 60%
Equity and Related Securities : Max 100 %
Debt, Money Marker and Cash :Max : 25%
Debt Instruments : Max 50 %
Money and cash : Min 50 %

Potential Risk-Reward
High
Average
Moderate
Low

Allocation of Premium
Premium Range

1st Year

2nd and 3rd Year

Rs. 60,000 Rs.4,99,999

87%

96%

Rs. 5,00,000 and above

89 %

96 %

Invest Assure; a unique, flexible insurance plan combines the

security of a life insurance policy with the opportunity to exploit

the upside of market returns. (However with increased

investment volatility)
Invest Assure-The Benefits
Provides security to your family incase of your unfortunate
demise.
Gives you the flexibility to choose your fund based on your risk
comfort.
Enables you to enjoy market-linked returns with a potential for
higher growth
Brings you additional income on funds that might have otherwise
given you minimum returns in your saving account.

MAX NEW YORK LIFE

Life Maker Unit Linked Investment Plan
A winning plan form every direction

1f How does the Life Maker Unit Linked Investment Plan

work?
In the Life Maker TM unit linked plan; the premiums you pay are
invested in funds offered by us. The appropriate ratio of
investments into these funds will be determined by you in
consultation with your Agent Advisor. These funds are invested in
assets such as equities, money market instruments, investment
grade corporate bonds, and government securities. These funds
offer a wide range of returns. You can choose to invest your
premiums in one or more of these funds, basis your risk taking
ability.
In turn, we issue units, which represent the value of your policy
Le. you can "see" the value of your policy on any day by
multiplying the number of your units by the value of units on that
day. The value of these units is called the Net Asset Value (or

NAV) and is normally published in newspapers on a daily basis.

The NAV is based on the market value of the underlying
investments in that fund Le. equities, company bonds,
government securities, etc.

Allianz Bajaj Unit Gain

The Allianz Bajaj Unit Gain Plan
The Allianz Bajaj Unit Gain comes with a host of features to allow
you to have the best of all worlds Protection and Investment
with flexibility like never before.
Some of the key features of this plan are:

Guaranteed death benefit

Choice

of

investment

funds

with

flexible

investment

management you can change funds at any time.

Attractive
securities.

investment

alternatives

to

fixed-

interest

Provision for full/ partial withdrawals any time after three full
years premiums are paid.

Unmatched flexibility to match your changing needs.

The four funds offered are as under:a)

Equity Bond This fund provides the scope of high
appreciation over a long term. The fund will primarily invest in
equities & is expected to match returns given by NSE NIFTY. This
fund will invest at least 90% in equities and maximum 10% in
cash.
b)
Debt Fund This fund provides the scope for steady returns at
low risk through investment in high quality fixed income
securities. This fund will be invested fully in debt instruments.
c)
Balanced Fund The balanced fund is primarily for those who
prefer a mix of steady returns & growth. The balanced fund will
invest 30% to 50% in the equity fund and 50% to 70% in the debt
fund.
d)
Cash Fund The cash fund will invest conservatively in money
market & short-term investments to ensure that return on
investments shall never be negative. 100% of this fund will be
invested in money market instruments. The price of the units in
this fund is guaranteed never to go down.

KOTAK FLEXI PLAN

What is the Kotak Flexi Plan?
An investment cum insurance plan that can be customized to
meet your constantly evolving needs. While on one hand it lets
you decide the amount of insurance cover that you want, on the

other hand, it invests a portion of the premium in the capital

markets to ensure that your money works hard for you.
At the same time the plan ensures that you have enough
flexibility to meet your financial objectives of savings and
protection, both through this single plan. The plan gives you the
option to add lump sum injections, when you want. And whats
more it cover, you the flexibility to withdraw your funds in part in
full.
Plan Description
When you invest in the plan, you have the flexibility to choose the
portion of your money that should go towards providing your
insurance cover, and the portion should go towards the
investment corpus.
Maturity Benefit:- You have the option to choose the sum
assured that you would want on maturity. This sum assured would
be referred to as the maturity sum assured or SA1. Portion of the
premium corresponding to this amount would be referred to as
the investment premium or P1.
On maturity, you would event of death of the life insured, the
beneficiary would receive SA2 plus the market value of the units,
less unpaid P2 premiums.
Death Benefit:- The plans offer you the flexibility to decide the
amount of insurance cover that you want. The amount of
insurance cover selected would be referred to as the insurance
sum assured or SA2. Portion of the premium corresponding to SA2
would be referred to as the insurance premium or P2.
In the unfortunate event of death of the life insured, the
beneficiary would receive SA2 plus the market value of the units,
less unpaid P2 premiums.

Money Market Fund The fund seeks to provide reasonable

returns commensurate with low risk through investments in
money market instruments such as treasury bills, commercial
paper, call money market, etc.
Floating Rate Fund The fund seeks to deliver returns in line
with the market interest rate, from a portfolio invested primarily
in floating rate debt instruments.
Gilt Fund The fund seeks to generate returns through
investments primarily in government securities. The fund gives
you an option to invest in zero credit risk Central Government
securities as it recognizes that safety for you is prime.
Bond Fund The fund seeks to generate returns from a portfolio
constituted primarily of high quality debt paper issued by
corporate in India.
Balanced Fund The fund seeks to achieve steady income and
capital appreciation from a portfolio constituted of high quality
debt securities and listed equity.
Growth Fund The fund seeks to achieve capital appreciation
through investments in listed equity and equity related
investments. Securities will be enhanced through holdings in
highly rated debt securities.

LIFE INSURANCE CORPORATION

LICs Future plus
It fulfills an existing Mkt. Demand & combines Retirement Benefits
with U.L. Benefits
Features:1)
Min Premium = 10,000
2)
Max Premium = No Limit

3)

Mode of Payments Cash up to any amount or Local Cheque /

D.D.
4)
Add onus Ins. Cover/ Accidental Benefit/Critical illness
optional
5)
Switch over from fund to another any number of time.
6)
4 Switches free in a yr & Rs. 100 per switch over thereafter.
7)
Min Term 5 yrs.
8)
Vesting Age 40-75 yrs.
9)
Any person b/w 18-65 yrs only.
10) Add to your fund any time & any amount in multiple of 1000
only.
11) No medical Exam
12) Zero lock in period.

CONCLUSION
Over the past three years, around 40 companies have expressed
interest in entering the sector and many foreign and Indian
companies have arranged anticipatory alliances. The threat of
new players taking over the market has been overplayed. As is
witnessed in other countries where liberalization took place in
recent years we can safely conclude that nationalized players will
continue to hold strong market share positions, but there will be
enough business for new entrants to be profitable.
Opening up the sector will certainly mean new products, better
packaging and improved customer service. Both new and existing

players will have to explore new distribution and marketing

channels. Potential buyers for most of this insurance lie in the
middle class. New insurers must segment the market carefully to
arrive at appropriate products and pricing. Recognizing the
potential, in the past three years, the nationalized insurers have
already begun to target niches like pensions, women or children.
Given the industrys huge requirement of start-up capital, the
initial years after opening up are bound to see a strong inflow of
foreign capital. Substantial shift in the distribution of insurance in
India is likely to take place. Many of these changes will echo
international trends. Worldwide, insurance products move along a
continuum from pure service products to pure commodity
products. Initially, insurance is seen as a complex product with a
high advice and service component. Buyers prefer a face-to-face
interaction and place a high premium on brand names and
reliability.
Finally, some potential Indian entrants into insurance hope to ride
their existing distribution networks and customer bases. For
example financial organizations like ICICI, HDFC or BIRLA intend to
tap the thousands of customers who already buy their deposits,
consumer loans or housing finance.

SUGGESTIONS
1.

To address mass is cheaper. Thus sponsoring the events

conducted by CII, FICCI, PHD Chamber of commerce and other
such renowned organizations could be fruitful. Along with these
certain cultural events may be sponsored.

2.

3.

4.

5.

6.
7.

8.

9.

Increasing awareness level by increasing number of hoarding in

prime areas such as Bank Square sector , railway station, bus
stand and industrial area.
There should be no upper limits for CFC's under a BDM because
as competition goes companies like Allianz Bajaj and Tata AIG has
no upper limits.
Measures to build faith among people about corporate BIRLA
SUN LIE INSURANCE must be taken on accounts of its reliability,
credibility, responsibility, sincerity and the long lasting
establishment.
Since all the riders attached with any of its products is along
with a slight increment in the premium rates, as such a few cost
free riders should be designed to attract more customers.
Put up ATM's in different areas so that premium can be
collected across the country.
There should be a particular. Product, which can be termed as
Fixed Deposit Insurance product, where life insurance policy can
act as a fixed deposit for the customer, which can be encashed
whenever required up to a certain percentage of sum assured.
The agent should not only be provided with training at time of
section but they should also be given refresher training
periodically. As the agents find training a step to be selected as an
agent of the company, the agent should be provided the
knowledge about all the cheques. It increase their professionalism
make them more competitive. Every year the agents should be
given the training for at least one week.
The company should take steps to give more incentives to the
agents as the commission percentage is fixed by insurance
regulatory developments authority (IRDA).

10.

As the most important media to increase the sate, the agent

should be provided with more and more incentives to motivate
them to work for that company only.
11.
The company should also make effort in advertisement through
city Cable Channel as wide is covered by it Banners on the
highway or other crowded area should be setup.
12.
The company should cover various risks in one policy with
same premium.

LIMITATIONS
Some of the respondents were not cooperative.
Some respondents were hesitating to give business
details.
Biasness is another limitation that the scope of the
survey.
The reliability and scope of survey greatly relies on the
cooperation of the respondents.

BIBILIOGRAPHY
BOOKS Kothari C.R., Research Methodology, 4th Edition 2002
Kottler Philip, Marketing Management, 10th Edition, Prentice- Hall
of India Pvt. Ltd., 2001
Thakur Devendra, Research Methodology, Deep & Deep
Publication Pvt. Ltd. , 2005
MAGAZINES

India Today
Business World
Money
Business Week

INTERNET
www.birlasunlife.com
www.birlasunlifeinsurance.com