Project On Birla Sun Life Insurance by Arun_Dhadwal

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    Insurance = Collective bearing of Risk

Insurance is nothing but a system of spreading the risk of one onto the shoulders of many.
While it becomes somewhat impossible for a man to bear by himself 100% loss to his
own property or interest arising out of an unforeseen contingency, insurance is a method
or process which distributes the burden of the loss on a number of persons within the
group formed for this particular purpose.

Basic Human trait is to be averse to the idea of risk taking. Insurance, whether life or
non-life, provides people with a reasonable degree of security and assurance that they
will be protected in the event of a calamity or failure of any sort.

Insurance may be described as a social device to reduce or eliminate risk of loss to life
and property. Under the plan of insurance, a large number of people associate themselves
by sharing risks attached to individuals. The risks, which can be insured against, include
fire, the perils of sea, death and accidents and burglary. Any risk contingent upon these,
may be insured against at a premium commensurate with the risk involved. Thus
collective bearing of risk is insurance.

•        Insurance Indemnifies Assets & Income. Every Asset has a value and generates
Income to its Owner. There is a normally expected Life-time for the Asset during which
time it is expected to perform. If the Asset gets lost earlier, being destroyed or made
Non-functional through an Accident or other unfortunate event the Owner is Prejudiced.
Insurance helps to reduce CONSEQUENCES of such Adverse Circumstances which are
called Risks

•       Insurance is the science of spreading of the risk. It is the system of spreading the
losses of an Individual over a group of Individuals

•       Insurance is a Method of sharing of financial losses of a few from a common fund
formed out of Contribution of the many who are equally exposed to the same loss
•       What is uncertainty for an Individual becomes a certainty for a Group. This is the
basis of All Insurance Operations. Thus insurance convert uncertainties to certainty

The definition of insurance can be made from two points:

1        Functional definition.
2        Contractual definition.

Functional definition
Insurance is a co-operative device to spread the loss caused by a particular risk over a
number of persons who are exposed to it and who agree to insure themselves against the

General Definition
Insurance has been defined to be that in which a sum of money as a premium is paid in
consideration of the insurer’s incurring the risk of paying a large sum upon a given
              In the words of John Magee, ―Insurance is a plan by themselves which large
number of people associate and transfer to the shoulders of all, risks that attach to
Fundamental Definition
In the words of D.S. Hansell, ―Insurance accumulated contributions of all parties
participating in the scheme.‖

Contractual Definition
In the words of justice Tindall, ―Insurance is a contract in which a sum of money is paid
to the assured as consideration of insurer’s incurring the risk of paying a large sum upon
a given contingency.‖

Worldwide History
To talk about the insurance companies, insurance in modern form had occurred after the
Great Fire in London in 1666 which destroyed myriad houses. Nicholas Barbon,
following the disaster, had established England's first fire insurance company (The Fire
Office) in1680. In the United States, the first insurance company which provided fire
insurance was formed in South Carolina; in 1732.The practice of perpetual insurance
against fire was popularized by Benjamin Franklin. In 1752, he founded the Philadelphia
Contribution ship for the Insurance of Houses. In India, the Oriental Life Insurance
Company was started in 1818 by Europeans, much before independence. The first
indigenous insurance company in India was started in the year 1870 in the form of
Bombay Mutual Life Assurance Society.
The roots of insurance might be traced to Babylonia, where traders were encouraged to
assume the risks of the caravan trade through loans that were repaid (with interest) only
after the goods had arrived safely—a practice resembling bottomry and given legal force
in the Code of Hammurabi (c.2100 B.C.). The Phoenicians and the Greeks applied a
similar system to their seaborne commerce. The Romans used burial clubs as a form of
life insurance, providing funeral expenses for members and later payments to the
With the growth of towns and trade in Europe, the medieval guilds undertook to protect
their members from loss by fire and shipwreck, to ransom them from captivity by pirates,
and to provide decent burial and support in sickness and poverty

In London, Lloyd's Coffee House (1688) was a place where merchants, ship-owners, and
underwriters met to transact business. By the end of the 18th cent. Lloyd's had progressed
into one of the first modern insurance companies. In 1693 the astronomer Edmond Halley
constructed the first mortality table, based on the statistical laws of mortality and
compound interest. The table, corrected (1756) by Joseph Dodson, made it possible to
scale the premium rate to age; previously the rate had been the same for all ages.
New York City
The New York fire of 1835 called attention to the need for adequate reserves to meet
unexpectedly large losses; Massachusetts was the first state to require companies by law
(1837) to maintain such reserves. The great Chicago fire (1871) emphasized the costly
nature of fires in structurally dense modern cities. Reinsurance, whereby losses are
distributed among many companies, was devised to meet such situations and is now
common in other lines of insurance. The Workmen's Compensation Act of 1897 in
Britain required employers to insure their employees against industrial accidents. Public
liability insurance, fostered by legislation, made its appearance in the 1880s; it attained
major importance with the advent of the automobile                                        In
recent years insurance premiums (particularly for liability policies) have increased
rapidly, leaving unprecedented numbers of Americans uninsured. Many blame the
insurance conglomerates, contending that U.S. citizens are paying for bad risks made by
the companies. Insurance companies place the burden of guilt on law firms and their
clients, who they say have brought unreasonably large civil suits to court, a

trend that has become so common in the United States that legislation has been proposed
to limit lawsuit awards. Catastrophic earthquakes, hurricanes, and wildfires in late 1980s
and the 90s have also strained many insurance company's reserves.

Insurance Indian history
The history of life insurance in India dates back to 1818 when it was conceived as a
means to provide for English Widows. Interestingly in those days a higher premium was
charged for Indian lives than the non-Indian lives as Indian lives were considered more
riskier for coverage.
The Bombay Mutual Life Insurance Society started its business in 1870. It was the first
company to charge same premium for both Indian and non-Indian lives. The Oriental
Assurance Company was established in 1880. The General insurance business in India,
on the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the
first general insurance company established in the year 1850 in Calcutta by the British.
Till the end of nineteenth century insurance business was almost entirely in the hands of
overseas companies.
Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's
and 30's sullied insurance business in India. By 1938 there were 176 insurance
companies. The first comprehensive legislation was introduced with the Insurance Act of
1938 that provided strict State Control over insurance business. The insurance business
grew at a faster pace after independence. Indian companies strengthened their hold on
this business but despite the growth that was witnessed, insurance remained an urban
The Government of India in 1956, brought together over 240 private life insurers and
provident societies under one nationalized monopoly corporation and Life Insurance
Corporation (LIC) was born. Nationalization was justified on the grounds that it would
create much needed funds for rapid industrialization. This was in conformity with the
Government's chosen path of State lead planning and development.
The (non-life) insurance business continued to thrive with the private sector till 1972.
Their operations were restricted to organized trade and industry in large cities. The
general insurance industry was nationalized in 1972. With this, nearly 107 insurers were
amalgamated and grouped into four companies- National Insurance Company, New India
Assurance Company, Oriental Insurance Company and United India Insurance Company.
These were subsidiaries of the General Insurance Company (GIC).
The general insurance business was nationalized after the promulgation of General
Insurance Business (Nationalizations) Act, 1972. The post-nationalization general
insurance business was undertaken by the General Insurance Corporation of India (GIC)
and its 4 subsidiaries:
1.      Oriental Insurance Company Limited;
2.      New India Assurance Company Limited;
3.      National Insurance Company Limited; and
4.      United India Insurance Company Limited.

Some of the important milestones in the life insurance business in India are:
1850: Non life insurance debuts with triton insurance company.
1870 :Bombay mutual life assurance society is the first Indian owned life insurer
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 Crore 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 of India.
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 companies’ viz. the National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and
the United India Insurance Company Ltd. GIC incorporated as a company.
                              Malhotra Committee
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 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 sector. 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- a part of 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 insurance policies, 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.
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 and Development Authority.
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. Since being set up as an independent statutory
body the IRDA has put in a framework of globally compatible regulations. The other
decision taken simultaneously to provide the supporting systems to the insurance sector
and in particular the life insurance companies was the launch of the IRDA 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.
                           PURPOSE OF INSURANCE

1.   Insurance spreads the economic burden of losses by using funds contributed by
members of the group to pay for them. Thus, it is a loss spreading device.

2.     The fundamental purpose of insurance however is neither the spreading nor the
prevention of losses. Rather, it is reduction of the uncertainty which is caused by
awareness of the possibility of loss.

3.      An insurance scheme provides certainty for the individual members of the group
by averaging loss costs. The contribution made by the individual to the group is assumed,
on the basis of predictions, to be his share of losses suffered by the group.

In exchange for this contribution, he is assured that the group will assume any losses that
involve him. He transfers his risk to the group and averages his loss costs, thus
substituting certainty for uncertainty. He pays a certain premium instead of facing the
uncertainty of the possibility of large loss.
                         FUNCTION OF INSURANCE

The functions of Insurance can be bifurcated into three parts:

1. Primary Functions
2. Secondary Functions
3. Other Functions

The primary functions of insurance include the following:

Provide Protection
The primary function of insurance is to provide protection against future risk, accidents
and uncertainty. Insurance cannot check the happening of the risk, but can certainly
provide for the losses of risk.

Collective bearing of risk
Insurance is a mean by which few losses are shared among larger number of people. All
the insured contribute the premiums towards a fund and out of which the persons
Exposed to a particular risk is paid.

Assessment of risk
Insurance determines the probable volume of risk by evaluating various factors that give
rise to risk. Risk is the basis for determining the premium rate also .

Provide Certainty
Insurance is a device, which helps to change from uncertainty to certainty. Insurance is
device whereby the uncertain risks may be made more certain.

Research and publicity

Insurers also spend money in research and publicity in creating risk consciousness
amongst which has a far reaching effect on reduction in national waste.
The secondary functions of insurance include the following:

Prevention of Losses
Prevention of losses causes lesser payment to the assured by the insurer and this will
encourage for more savings by way of premium. Reduced rate of premiums stimulate for
more business and better protection to the insured.

Small capital to cover larger risks
Insurance relieves the businessmen from security investments, by paying small amount of
premium against larger risks and uncertainty.

Contributes towards the development of larger industries
Insurance provides development opportunity to those larger industries having more risks
in their setting up. Even the financial institutions may be prepared to give credit to sick
industrial units which have insured their assets including plant and machinery.

If improves efficiency
The insurance eliminates worries and miseries of loans at death and destruction of
property. The carefree person an devote his body and soul together for better
achievement. It improves not only his efficiency, but the efficiencies of the masses are
also advanced.

It helps economic progress
The insurance by protecting the society from huge losses of damage, destruction and
death, provides an initiative to work hard for the betterment of the masses. The next
factor of economic progress. The capital is also immensely provided by the masses. The
property, the valuable assets, the man, the machine and the society cannot lose much at
the disaster.

The other functions of insurance include the following:

Means of savings and investment
Insurance serves as savings and investment, insurance is a compulsory way of savings
and it restricts the unnecessary expenses by the insured's For the purpose of availing
income-tax exemptions also, people invest in insurance.
Source of earning foreign exchange
Insurance is an international business. The country can earn foreign exchange by way of
issue of marine insurance policies and various other ways.

Risk Free trade
Insurance promotes exports insurance, which makes the foreign trade risk free with the
help of different types of policies under marine insurance cover.

                       NATURE OF INSURANCE

Sharing of risk
Insurance is a device to share the financial losses which might be fall on an individual or
his family on the happening of specified event. The event may be death, incase of life
insurance, marine perils, marine insurance, fire in fire insurance and other certain events
in general insurance.

Co-operative Device
The most important feature of every insurance plan is the co-operation of large number of
persons who, agree to share the financial loss arising due to a particular risk which is
insured. All co-operative devices, there is no compulsion here on anybody to purchase
the insurance policy.

Value of risk
The risk is evaluated before inuring to charge the amount of share of an insured, here is
called, consideration or premium. If there is expectation of more loss, higher premium
may be charged. So, the probability of loss is calculated at the time of insurance.

Payment at Contingency
The payment is made at a certain contingency insured. If the contingency occurs,
payment is made. Since the life insurance is a contract of certainty, because the
contingency, the death or the expiry of term, will certainly occur, the payment is certain.

Amount of payment
The amount of payment depends upon the value of loss occurred due to the particular
insured risk provided insurance is there up to that amount. In case of life insurance, the
insurer promises to pay a fixed sum on the happening of an even. (Either death or the
expiry of the term).

Large number of insured persons
The co-operation of a small number of persons may also be insurance but in that case, the
cost of insurance to each number may be higher. In case of large number of persons
opposite condition is applicable.

Insurance is not gambling
The insurance is just opposite of gambling. In gambling by bidding the persons exposes
himself to risk of losing ,in the insurance the insured is always opposed to risk and will
suffer loss if he is not insured.

Insurance is not charity
Charity is given without consideration but security and safety provided by insurance is
not possible without consideration or premium. It provides security and safety to an
individual and to the society although it is a kind of business because inconsideration of
premium it guarantees the payment of loss.

                       PRINCIPLE OF INSURANCE

Principles of Co-operation.

Insurance is co-operative device. If one person is providing for his own losses, it can not
be strictly insurance because in insurance, the loss is shared by a group of persons who
are willing to co-operate. It is the duty and responsibility of the insurer to obtain adequate
funds from the members of the society to pay them at the happening of the insured risk.
Thus, the shares of loss took the form of premium. Today, all the insured

give a premium to join the scheme of insurance. Thus, the insured are co-operating to
share the loss of an individual be payment of a premium in advance.

Principles of Probability

The loss in the shape of premium can be distributed only on the basis of theory of
probability. The chances of loss are estimated in advance to affix the amount of premium.
Since the degree of loss depends upon various factors, the affecting factors are analyzed
before determining the amount of loss. With the help of this principle, the uncertainty of
loss is converted into certainty. The insurer will have not to suffer loss as well have to
gain windfall. Therefore, the insurer has to charge only so much of amount which is
adequate to meet the loss. The probability tells what the chances of loss are and what will
be the amount of losses.

The insurance, on the basis of past experience, present conditions and future prospects,
fixes the amount of premium. Without premium, no-operation is possible and the
premium can not be calculated without the help of theory of probability, and
consequently no insurance is possible. So, these two principles are the two main legs of


The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act
as a strong and powerful supervisory and regulatory authority for insurance. Post
nationalization, the role of Controller of Insurance diminished considerably in
significance since the Government owned the insurance companies. But the scenario
changed with the private and foreign companies foraying in to the insurance sector. This
necessitated the need for a strong, independent and autonomous Insurance Regulatory
Authority was felt. As the enacting of legislation would have taken time, the then
Government constituted through a Government resolution an Interim Insurance
Regulatory Authority pending the enactment of a comprehensive legislation.
The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for
the establishment of an Authority to protect the interests of holders of insurance policies,
to regulate, promote and ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto and further to amend the Insurance Act, 1938,
the Life Insurance Corporation Act, 1956 and the General insurance Business
(Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of
India (for life insurance business) and General Insurance Corporation and its subsidiaries
(for general insurance business).
  The act extends to the whole of India and will come into force on such date as the
Central Government may, by notification in the Official Gazette specify. Different dates
may be appointed for different provisions of this Act.
  The Act has defined certain terms; some of the most important ones are as follows
appointed day means the date on which the Authority is established under the act.
Authority means the established under this Act.
Interim Insurance Regulatory Authority means the Insurance Regulatory Authority set up
by the Central Government through Resolution No. 17(2)/ 94-lns-V dated the 23rd
January, 1996. Words and expressions used and not defined in this Act but defined in the
Insurance Act, 1938 or the Life Insurance Corporation Act, 1956 or the General
Insurance Business (Nationalization) Act, 1972 shall have the meanings respectively
assigned to them in those Acts. A new definition of "Indian Insurance Company" has
been inserted. "Indian insurance company" means any insurer being a company
(a)      which is formed and registered under the Companies Act, 1956
(b) in which the aggregate holdings of equity shares by a foreign company, either by
itself or through its subsidiary companies or its nominees, do not exceed twenty-six per
cent. Paid up capital in such Indian insurance company (c) whose sole purpose is to carry
on life insurance business, general insurance business or re-insurance business.

                           COMPANY PROFILE
Birla Sun Life Insurance Company Limited (BSLI)


       To create long term value along with market leadership

•      To help people mitigate risks of life, accident, health and money at all stages and
under all circumstances
•      Enhance the financial future of our customers, including enterprises.
•      Integrity
•      Commitment
•      Passion
•      Seamlessness

 Birla Life Insurance Co Ltd market share of the company increased from 1.22% to
2.11% in 2007-08. The company moved to the 7th position in 2007-08 from 8the a year
before, pushing down Max New York Life insurance company.
About Birla Sun Life Insurance Company Limited
?       Birla Sun Life Insurance pioneered the unique Unit Linked Life 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, supported with
protection products to maintain leadership in product innovation.

?       Multi Distribution Channels- Direct Sales Force, Alternate Channels and Group
offering convenient channels of purchase to customers.

?      Web-enabled IT systems 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.

?      First to have an operational Business Continuity Plan.

Strong fundamentals based on the Aditya Birla group's local insight and Sun Life
financial global expertise.
Briefing mediapersons, Birla said, "The insurance sector, which is a knowledge based
industry is to be one of our core business. Our vision is to be among the top five
insurance companies in India and in this regard, we have aligned with one of the best
companies-the Sun Life financial group.
The partnership is based on values, mutual respect, integrity and customer focus. Sun life
financial is indeed delighted to be back in India in the insurance sector after almost 40
"Our group holding is 74 per cent, with Indian Rayon and Birla Global Finance Ltd
having a stake of 69 per cent and 5 per cent respectively, while Sun Life financial holds
26 per cent. The current capitalization of this venture stands at Rs 120 crore."
He informed the gathering that the current funding for the insurance business "in no way
affects Indian Rayon's existing cap". "Considering the immense growth potential of the
life insurance business, this venture will definitely create value for our three lakh
shareholders. Our group's extensive presence in India as well as our network of
employees, shareholders and distributors is a great advantage, which our insurance
business will leverage. We have a receptive population of over a million stakeholders,"
Birla added.
He also said that the new team for the insurance company was declared and that Don
Steward, chairman & CEO of Sun Life financial services, takes over as the chairman of
the Birla Sun Life insurance board of directors. Kumarmanagalam Birla continues as a
director on the board. The total 12 directors have been nominated consisting of six
directors each from Aditya Birla group and Birla Sun Life insurance company.
                           JOINT VENTURES
Birla Sun Life under the management of Mr. Nani B. Javeri as the CEO is a Rs. 180 crore
equity capital company. Birla Sun Life Insurance Co. Ltd is a 26:74 joint venture
between Sun Life Financial Services Canada and Aditya Birla Group. Just four years
down the industry pipeline, Birla Sun Life Insurance or BSLI has secured a lead in
private life insurance market.
About the Aditya Birla Group:
The Aditya Birla Group has a turnover exceeding Rs. 28,000 crores (as on 31 March
2004) and is one of the largest business houses in India. It enjoys a leadership position in
all the sectors in which it operates. With over 75 business units, spanning the South East
Asian belt, Africa, Canada and the UK, among others, it is reckoned as India's first
multinational corporation. The group is anchored by 72,000 employees and has seven
lakh shareholders, with an asset base of over Rs.23,000 crores.
About Sun Life Financial Inc.:
Sun Life Financial Inc. is a leading international financial services organization providing
a diverse range of wealth accumulation and protection products and services to
individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial
and its partners today have operations in key markets worldwide, including Canada, the
United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India,
China and Bermuda. As of 31 March 2004, the Sun Life Financial group of companies
had total assets under management of USD 282 billion.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine
(PSE) stock exchanges under ticker symbol "SLF".


•      CEO
•      CFO
•      Senior Vice President- Direct Sales Forces
•      Senior Vice President –Alternate Channel And Group Life
•      Senior Vice President and Appointed Actuary
•      Vice President - Marketing and Communication
•      Vice President - Planning, Legal and Finance
•      Vice President - Technology
•      Vice President - Implementation, Control and Administration
•      Vice President - Client Services and Underwriting
•      Vice President - Field Operations Direct Sales Force


Name Nani Javeri
Designation CEO

Name Anil J. Jhala
Designation CFO

Name E. N. Goveia
Designation Senior Vice President - Direct Sales Force

Name P. Nandagopal
Designation Senior Vice President - Alternate Channel and Group Life

Name K.S. Gopalakrishnan
Designation Senior Vice President and Appointed Actuary

Name Anjana Grewal
Designation Vice President - Marketing and Communication

Name Mayank Bathwal
Designation Vice President - Planning, Legal and Finance

Name M.C Raisinghani
Designation Vice President - Technology

Name Snehal Shah
Designation    Vice President - Implementation, Control and Administration

Name Mario Braganza
Designation Vice President - Client Services and Underwriting

Name Murli Iyer
Designation Vice President - Field Operations Direct Sales Force

•      Achieved a first year weighted annualized premium of Rs. 2,204 crores, as against
Rs. 953 corers in the previous year
•      a growth of over 131%, amongst the highest in the industry
•      improved market share considerably
•      ranked number six amongst private sector players
•      Revenue growth of 94% to Rs. 4,012 corers, from Rs. 2,069 crores last year
•      Launched 10 products in individual life segment and 2 in Group business segment
•      An aggressive growth in customer contact points
•      No. of branches has grown from 137 to 339, with another 261 branches going on
stream from Q1 2008-09
•      No. of agents has grown from 56, 000 to 115, 000, over the year
•      Strong fund performance
Comparative study of BSLI’s Business Performance Q1 FY 2007-08 and Q1 FY 2008-09
BSLI (Q1 FY 2007-08)                             BSLI (Q1 FY 2008-09)
Market Share-4.9%                                Market Share-8.15%
Growth Rate (Individual + Group)                 Growth Rate (Individual + Group)
22%                                               194%
Annualized Premium Equivalent (APE)              Annualized Premium Equivalent (APE)
 Rs. 185.3                                         Rs. 507.4

 Birla Sun Life Insurance Company Ltd. (BSLI), the pioneer of Unit Linked Life
Insurance plans amongst the private life insurers in India, has registered strong growth
amongst the private life insurers, as per reports for the Q1 of the fiscal 2008-09. As per
the Q1 FY 2008-09 figures, BSLI has a market share of 8.15% amongst private life
insurance players as compared to BSLI’s market share for Q1 FY 2007-08, which was
4.9%, indeed a significant leap. BSLI’s life insurance business has achieved a growth rate
of 194%. The total APE (Annualized Premium Equivalent) is at Rs. 507.4crores.
―Birla Sun Life Insurance continues its momentum into the new fiscal year with an
increased market share of 8.15% for Q1 FY 2008-09 (amongst private life insurance
players) and a growth rate of 194%. The first quarter FY 2008-09 has seen a ramp up on
account of our expansion in distribution network with 600 branches nationally as on July
2008, our innovative product suite and superior quartile fund performance, resulting in
the present high growth rate and market share,‖ said Mr. Vikram Mehmi, President &
CEO, and Birla Sun Life Insurance


Protection Policies:
o       Birla Sun Life Term Plan
o       Premium Back Term Plan
Savings Based Policies:
o       Birla Sun life Insurance Saral Jeevan
o       Birla Sun Life Insurance Gold-Plus
o       Supreme Life
o       Dream Plan
o       Classic Life Premium
o       Simply Life
o       Prime Life Premium
o       Prime Life
o       Life Companion
o       Flexi Cash Flow
o       Flexi Save Plus
o       Flexi Life Line
o       Single Premium Bond
Retirement Solutions:
o       Flexi secure Life Retirement Plan II
Child Policy:
o       Children's Dream Plan
Policies For Rural India:
o       Bima Suraksha Super
o       Bima Dhan Sanchay
o       Bima Kavach Yojana
Accident Protection Policies
o       Accidental Death Rider
o       Accidental Death Dismemberment Rider
o       Term Rider
o       Critical Illness Rider
o       Waiver PF Premiums
o       Critical Illness Plus Rider
o       Critical Illness-Woman Rider
Besides these the Group Insurance Products by Birla Sun Life Insurance include Group
Protection Solutions that offers you insurance at affordable prices, Group Superannuation
and Gratuity Plans, Single Premium Group Term Plan and Group Credit Guard Plan.

Special NRI Insurance Policies on offer by Birla Sun life include:
o      Prime Life Premium
o      Prime Life
o      Life Companion
o      Flexi Life Line Plan
o      Flexi Save Plus
o      Flexi Cash Flow
o      Classic Life Premier
o      Single Premium Bond
o      Simply Life

The current range of products offered by BSLI includes:

       Flexi Life Line

       Flexi Cash Flow

       Flexi Save Plus

       Flexi Secure Life

       Classic Life Premier

       Birla Sun Life Term & Premium Back Term Plan

       Life Companion

       Prime Life & Prime Life Premier

       Gold Plus

       Simply Life

       Single Premium Bond

       Supreme Life

       Children’s Dream Plan, Dream Plan

       Birla Sun Life Insurance Gold-Plus Plan

       Birla Sun Life Bima Kavach Yojana

       Birla Sun Life Group Protection Solutions

       Birla Sun Life Social Development Plan

       Birla Sun Life Group Gratuity Plan
       Birla Sun Life Group Superannuation Plan

       Birla Sun Life Group Interest Credit Plan

        Birla Sun Life Credit Guard Plan
The distribution channels by BSLI include
?       Direst sales force
?       Alternate channels
?       IT systems
?       Groups to ensure convenience of the potential customers
?       Highly professional dealing
?       Corporate governance
Complete transparency has earned Birla Sun Life Insurance Co Ltd the trust of its
The many pioneering activities by Birla Sunlife include:-
?       Unit Linked Life Insurance Solutions
?       Investment Linked Insurance Products
?       Web-Based Insurance Policies sale
 Birla Sun Life Insurance Company Limited also offers:-
?       MF (Mutual Fund)
?       International equity funds
?       Dream plans in insurance products that give you complete transparency and
The total Assets Under Management (AUMs) of the company are approximately Rs.4500
corers as of June 30, 2007. BSLI has one of the highest persistency ratios of 97.7% in
terms of premium, amongst private life insurers. Its Outstanding Claims Ratio continues
to be the best in the industry at 0.41%.
?       Mumbai March 5 Birla Sun Life Insurance hopes to grab a fair share of the
growing insurance market and be among the top three in two years.
?       Mr Vikram Mehmi, President and CEO, said that the accent would now be on
aggressive growth.
?       "The life insurance industry is growing at 100 per cent. We plan to introduce
innovative products and expand our channel reach," said Mr Mehmi, who took over as
CEO in December 2006. He was earlier CEO of Idea Cellular.
?       The company has registered 40 per cent growth in new business premium to Rs
579 crore in the first 10 months of the fiscal, against Rs 414 crore in the previous year.
?       On lower rate of growth when compared to other insurance companies, Mr
Mehmi said: "To a certain extent it was a conscious decision, since other companies do
not have many long-term products. Besides, there has been a change in the leadership of
the company."
?       In terms of maturity value, most of Birla Sun Life's products have a term of 15
years, said an official.
?       The company is exploring distribution tie-ups with other companies in the Birla
group, Mr. Mehmi said.
?       "We will evaluate all the opportunities we have to build synergies among the
group companies and try to evolve a low-cost distribution model."
?       Currently, the company has a tie-up with Idea Cellular to offer group term
insurance cover for subscribers aged 18-35.
?       It is in talks with non-life insurance companies to design a composite micro-
insurance product.
?       Mr. Mehmi also said that the company's average premium per policy was close to
the industry average of Rs 20,000.
?       It is likely to be lower in the future as insurers reach out to smaller towns and
lower income groups.
?       On breaking even, he said that if the company had to grow, break-even would
have to be postponed.
?       On Monday the company launched the `Children's Dream Plan,' a unit-linked
insurance plan with guaranteed maturity benefits.
?       The plan combines a guaranteed return on savings with upside potential based on
the performance of the investment funds.
?       The policy administration charge is customized and is deducted on a monthly
  What is BSLI' s investment philosophy and stock picking strategy?
BSLI:- Our primary objective is to provide CONSISTENT and long-term returns to our
policyholders. For stock picking, our emphasis is on outstanding track record of
management, clear visibility of growth, financial strengths and a scalable business model.
We focus on blue-chip companies with excellent track record, management vision and
the best degree of corporate governance.
What are the various fund options provided to policyholders by BSLI?
BSLI:-BSLI has been a pioneer of Unit Linked plans in India. Our product range on the
Individual life and Group front largely consists of Unit Linked plans. We have a range of
fund options on our individual and group plans. The equity component in this fund option
varies from 10 % to 90 %. We recommend our policyholders to select their fund options
based on their risk tolerance level and the future need of capital. Some of the fund
options listed below for Individual life plans are:
Fund Equity Component
Protector         Up to 10 %
BuilderUp to 20 %
Enhancer          Up to 35 %
CreatorUp to 50 %
Magnifier         Up to 90 %

Financial Expertise
As a joint venture of leading financial services groups. BIRLA SUN LIFE has the
financial expertise required to manage your long-term investments safely and efficiently.

Range of Solutions
They have a range of individual and group solutions, which can be easily customized to
specific needs. There group solutions have been designed to offer you complete
flexibility combined with a low charging structure.

Strong Ethical Values:
BIRLA SUN LIFE is an ethical and Cultural Organization. False selling or false
commitment with the customers is not allowed.

Most respected Private Insurance Company.

India’s insurance sector is likely to clock an unprecedented growth of over 200 per cent
by 2009-10. During this period, private players will grow at 140 per cent owing to their
aggressive marketing techniques as against a growth rate of 35-40 per cent of state owned
insurance companies.
The Chamber expects the total insurance business to reach Rs. 2000 billion in the next
two years from current level of Rs. 500 billion. On account of intense marketing
strategies adopted by private insurance players, the market share of state owned insurance
companies like GIC, LIC and others have already come down to 70 per cent in the last
four-five years from over 97 per cent and more intense competition is likely to be
witnessed in the near future.
Till very recently, the insurance sector was largely under the government. However,
many private multinational firms have now entered the scene, such as HDFC, ICICI,
Kodak Mahindra and Birla Sunlife.
Anyone interested in this field can either work in one of the areas of insurance: life,
general and postal or become an agent or an insurance surveyor. In an insurance company
a person can take a, job in.
The skills required to succeed in this field are almost the same as those for any marketing
or sales-related job. ? You have to be outspoken, gentle, persuasive, calm, and very good
at whatever responsibility you take. You have to remember that here you have to
persuade people to go for your insurance policy as against the hordes of such policies
available in the market.
To be eligible for a license, an insurance surveyor must have one of the following:
Fellowship of associate ship through the exam held by the Institute of Insurance
Surveyors and Adjusters (IISA), Mumbai? Degree or diploma in architecture from a
recognized university
With increasing awareness for life insurance, the customer base & mix is changing
rapidly. Birla Sun Life Insurance has been on a high growth path. The report clearly
shows how BSLI is emerging as the preferred life insurance provider for higher age
brackets. An increase in customers in the less than 1 laky income group validates there
efforts in increasing spread and reach.
For YTD January 2008. BSLI’s New Business Premium stood at Rs.1259.20 cores, a
117% increase over same period last year. The AUM for Birla Sun Life Insurance is in
excess of Rs.6590 cores as on 29th February, 2008. Its Outstanding Claims Ratio is
0.41%. BSLI has a pan-India branch presence of 339 branches with over 1, 00,000
advisors nationally, out of which over 500 advisors are members of the prestigious
Million Dollar Round Table (MDRT). BSLI has insured over 2 million lives since
inception, comprising over 1.5 million through its individual business and the rest
through its Group business.
Birla Sun Life Insurance (BSLI) in its 7 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 Banc assurance
route and through the Internet. It was 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. Being a customer centric company,
BSLI has invested heavily in technology to build world class processing capabilities.
BSLI has covered more than 2 million lives since inception and its customer base is
spread across more than 1500 towns and cities in India. All this has assisted the company
in cementing its place amongst the leaders in the industry in terms of new business
premium income.

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