A PROJECT REPORT ON CONSUMER BEHAVIOR TOWARDS BIRLA SUNLIFE INSURANCE LTD. SUBMITTED TO:- LOVELY PROFESSIONAL UNIVERSITY BACHELOR OF BUSINESS ADMINISTRATION PREFACE After having undergone the practical training with ―BIRLA SUNLIFE INSURANCE LTD.‖ I have been able to understand the importance and necessity of obtaining a professional degree in management. The working of various organs of organization is captured over here which correlates with one another as it further adds the vastness of my study. Hence my attempt is to cover all the organizational activities and related facts so as to have better control over my primary subject of study. The increased significance of understanding pivot for modern researches. Dynamic behavior of human resources shows a greater complexity to be overcome by researches and there is a vast scope left to be undergone. Todays Complex organization structure. Increasing importance of human resources. Increasing complexity of job designing and organization. Hence my study includes human related aspects with reference to organizational functioning. 1. In-depth Analytical study and observation of procedures and system of marketing which are prevalent in common environment. 2. Management policies and practices determine the success of entire organizational functioning. No matter whether it is recruitment policy or related to other department, it has a significant impact over recruitment. This project gives us an opportunity to get knowledge how business can effected and how to handle different situations which organization faces. EXECUTIVE SUMMARY BIRLA SUN LIFE INSURANCE COMPANY LIMITED is a joint venture between Sun Life Assurance Company of Canada and Aditya Birla Management Corporation Limited. Birla sun life insurance is one of the top privately owned life insurers in the country. The company has a large number of insurance advisors who sell company products in branches across the country. Birla Sun Life markets a full array of individual life insurance, group insurance and group savings products throughout India. Instead of this Birla Sun Life Asset Management Company Limited (BSLAMC), the investment managers of Birla Mutual Fund, is a joint venture between companies of Aditya Birla Management Corporation Limited and Sun Life Assurance Company of Canada.BSLAMC strives to provide transparent, ethical and research- based investment and wealth management services. Birla Sun Life Distribution Company Limited offers investment advisory and financial product distribution through its network of agents located across the country. The products offered are mutual funds, Government of India Relief bonds, and bonds of public financial institutions, select fixed deposits and Initial equity and debt public offerings. The company also distributes the insurance products of Birla Sun Life Insurance Company Limited. Both these companies having their own status in all over the world, both these companies are most popular companies. As we know it is joint venture between Sun Life Assurance Company of Canada and Aditya Birla Management Corporation Limited. Aditya Birla group is very famous company in India this company expand their business they having their cement factory and instead of this they having many other works this detail we get after reading this project report. The Aditya Birla Group is a US $24 billion conglomerate with a market capitalization of US $31.5 billion (as on 31st December 2007) and is one of the largest business houses in India. It enjoys a leadership position in all the sectors in which it operates. It is anchored by a force of 100,000 employees, belonging to 25 nationalities. Its operations span 20 countries across six continents and are reckoned as India's first multinational corporation. Headquartered in Mumbai, India, over 50 per cent of the Group’s revenues flow from its overseas operations. The Group nurtures a work culture where success is built on learning and innovation. The Aditya Birla Group was recently 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. India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Indians, have always seen life insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice. Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerisation of operations and updating of technology has become imperative in the current scenario. Foreign players are bringing in international best practices in service through use of latest technologies The insurance agents still remain the main source through which insurance products are sold. The concept is very well established in the country like India but still the increasing use of other sources is imperative. 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 March 31st, 2007, the Sun Life Financial group of companies had total assets under management of US$386.82 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol "SLF". Birla Sun Life Insurance Company Ltd. (BSLI), the individual life business has a market share of 6.6 % amongst private life insurance players, while the group business has a market share of 7.8% amongst private life insurance players in India as on March 2008. The increase in market share is reflected in both its individual life & group businesses. Mr.Vikram Mehmi, President & CEO, Birla Sun Life Insurance remarked ― Birla Sun life Insurance has regained momentum during 2007-08. For the year ended March 2008, we have achieved APE (Annualized Premium Equivalent) of Rs. 2,204 crores, showing a growth rate of 131% resulting in the company being amongst the fastest growing life insurance companies in India‖. This increase in market share & growth rate during fiscal 2008 has been realized on the back of an aggressive distribution expansion strategy & introduction of a range of innovative new plans & funds, which have provided the company unique opportunities to tap new market segments. The distribution expansion during the year recorded a phenomenal increase. This has happened across channels & on a national foot print. The branch network increased from 137 to 339; with a further 261 branches under implementation by May 2008. This expansion was national in nature across all the states & across various town classes. The bank assurance channel reflected high growth through in depth penetration of customer segments within its banking relationships. The corporate agency & broker channel witnessed phenomenal growth as a result of developing a large number of new relationships. During 2007-08, BSLI revamped its product portfolio – Launching 4 Products for Individual Segment, 3 products for Group and 7 Funds launched (4 Group + 3 Individual) new products have made a significant contribution to APE. The investment performance for BSLI has been strong & consistent, resulting in increased confidence of policyholders. The AUM for Birla Sun Life Insurance is about Rs.6,900 crores as on 31st March, 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 Company Limited is a joint venture between The Aditya Birla Group, one of the largest business houses in India and Sun Life Financial Inc., a leading international financial services organization. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc., offers a formidable protection for your future. Birla Sun Life Insurance (BSLI) has completed 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. 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 first two months of the fiscal 2008-09. As per the YTD May 2008 figures, BSLI has a market share of 7.4%, and has achieved a growth rate of 218% for its total new Annualized Premium Equivalent (APE), which is Rs. 254.6 crores. Birla Sun Life Insurance Company Ltd. (BSLI), the individual life business has a market share of 6.6 % amongst private life insurance players, while the group business has a market share of 7.8% amongst private life insurance players in India as on March 2008. The increase in market share is reflected in both its individual life & group businesses. Mr.Vikram Mehmi, President & CEO, Birla Sun Life Insurance remarked ― Birla Sun life Insurance has regained momentum during 2007-08. For the year ended March 2008, we have achieved APE (Annualized Premium Equivalent) of Rs. 2,204 crores, showing a growth rate of 131% resulting in the company being amongst the fastest growing life insurance companies in India‖. This increase in market share & growth rate during fiscal 2008 has been realized on the back of an aggressive distribution expansion strategy & introduction of a range of innovative new plans & funds, which have provided the company unique opportunities to tap new market segments. The distribution expansion during the year recorded a phenomenal increase. This has happened across channels & on a national foot print. The branch network increased from 137 to 339; with a further 261 branches under implementation by May 2008. This expansion was national in nature across all the states & across various town classes. The bank assurance channel reflected high growth through in depth penetration of customer segments within its banking relationships. The corporate agency & broker channel witnessed phenomenal growth as a result of developing a large number of new relationships. During 2007-08, BSLI revamped its product portfolio – Launching 4 Products for Individual Segment, 3 products for Group and 7 Funds launched (4 Group + 3 Individual) new products have made a significant contribution to APE. The investment performance for BSLI has been strong & consistent, resulting in increased confidence of policyholders. The AUM for Birla Sun Life Insurance is about Rs.6,900 crores as on 31st March, 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. BSLI is growing very speedy all over the India .This growth rate is increasing continuously instead of the market competition now these days there are many companies competing with each other. Today there are many companies working for insurance and these are like BIRLA SUNLIFE INSURANCE BAJAJ ALLIANZ ICICI PRU INSURANCE SHARA LIFE INSURANCE LIC Etc These and more other companies competing with each other and Birla Sun life is also giving competition and ask them to think over again these working style this all will we can watch just by study the progress chart This graph completely shows how BSLI is progressing just in last year The AUM for Birla Sun Life Insurance has crossed Rs.5100 crores as on 30th September 2007. Bely’s premium persistency ratio is 97.7%. Its Outstanding Claims Ratio is 0.41%. The company’s capital base is Rs.877 crores as on 26th September, 2007. Achievements: 1. Leading Distribution House in the country 2. Over 2,50,000 customers countrywide 3. 6000 plus business associates 4. National presence 35 Branches across the country. They believe that the desire for knowledge increases with the acquisition of it. At Birla Sun Life Distribution Co Ltd., we make the best use of intellect and expertise putting knowledge to good practice. As when and where you need it. CHAPTER -1 INTRODUCTION ABOUT PROJECT TOPIC PROJECT TITLE:- The project title is in the depth study of CONSUMER BEHAVIOR TOWARDS ―BIRLA SUN LIFE INSURANCE LIMITED.‖ INTRODUCTION:- In the present constantly developing scenario rapidly changing technology and consumer’s tastes and preferences have become order of the day .To survive in the market , a firm has not only to be constantly innovating for new process , designs and materials , but also keeping it well aware about the latest trend and tastes .Consumer behavior provides invaluable clues and guidelines to marketers on new technological and product frontiers , which they should explore for survival of their business with adequate profits . The heterogeneity among people across the world makes understanding consumer buying behavior is really a challenging task. The consumer identity ,his beliefs ,specific needs , attitudes and the kind of product and brands available in that product category influence his buying behavior .The marketing efforts of a firm have a profound impact on the buying behavior of customers .Therefore marketers attempt to obtain an in-depth knowledge of customers buying behavior .The success or failure of a product or service is directly related to the buying behavior of customer. Hence to understanding of the buying behavior of the customers helps marketers come up with innovative product mixes. Finally, buyer behavior acts as an imperative tool in the hands of marketers to forecast the future buying behavior of the customers and device marketing strategies accordingly in order to create long term relationship with the customers. MEANING OF CONSUMER BEHAVIOUR Consumer behavior is the study of how individuals make decisions to spend their available resources (time, money and effort) on consumption related item (what they buy, when they buy, where they buy, how often they buy and use a product or services). There heterogeneity among people across the world makes understanding consumer behavior an intricate and challenging task. The consumer’s identity, his belief’s, specific needs, attitudes and the kind of product and brand available in that product category influence his buying behavior. The marketing efforts of a firm have a profound impact on the buying decisions of the customers. Therefore, marketers attempt to obtain an in-depth knowledge of customers buying behavior. The success or failure of a product or service is directly related to the buying behavior of customers. Hence, an understanding of buying behavior of customers helps marketers to come up with innovative products mixes. Finally, buyer behavior acts as an imperative rule in the hands of marketers to forecast the future buying behavior of customers and device marketing strategies accordingly in order to create long term relationship with customer. BUYING DECISION PROCESS Consumers pass through different stages before actually buying of products which are as follows: 1. Identify the problem / need recognition. 2. Gather information about products and brands. 3. Evaluate the alternative and select the best possible alternative. 4. Purchase decision/ buying the product. 5. Post purchase evaluation. PROBLEM RECOGNITION The process of buying starts when a person relies that he has a problem or an unsatisfied need. A need can be aroused internally within the person, for example, hunger or buy an external stimulus. An external stimulus such as an advertisement or the attractiveness of the product package may also trigger a need in a person. Sources of problem recognition include: An item is out of stock Dissatisfaction with a current product or service Consumer needs and wants Related products/purchases Marketer-induced New products INFORMATION SEARCH A consumer who realizes a need of a product will try to gather information regarding the product. Information can be gathered from several sources like, 1. Personal sources: Family, friends, neighbors and reference group. 2. Commercial sources: Advertisement-print media, broadcasting media and the internet and other marketing sources like departmental stores and retail outlets. 3. Public sources: Articles in newspapers and journals, and consumer rating organizations. 4. Experimental sources: Free trails etc. EVALUATION OF ALTERNATIVES In this stage, customer analysis the information available with him in order to select the right brand or product. The criteria to evaluate a product may differ depending either on the buying situation or on the level of involvement required. For high value and infrequently purchased items, customers can be involved in detailed analysis of information. However, for low involvement or low priced product, customers can use simple criterion, such as price. Customers can give a certain level of attention to different features and characteristics of a product. PURCHASE DECISION Selection or purchase of a particular brand is depending on the evaluation criteria and ratings. The purchase decision also depends upon the availability of brands. This stage also accounts for a large number of sub divisions about purchasing a product like: 1. Seller and location of store. 2. Time of purchase. 3. Size of the product. 4. Price of the product. 5. Delivery and warranty. 6. Payment method like credit arrangements. 7. Ancillary services offered, like installation and maintenance arrangements. POST PURCHASE BEHAVIOR A customer evaluates the performance of a product after buying it. He will also compare the performance of the product with that of it’s competitors product. The consumer will be either satisfied or dissatisfied after this evaluation. Buyer’s post purchase feelings are of significant importance to marketers. The post purchase evaluation might either lead to repeat purchase and the buyer talking favorably about the product to other or the buyer may talk negative about the firm’s product. FACTORS INFLUENCING CONSUMER BEHAVIOR 1. CULTURE FACTORS CULTURE SUBCULTURE SOCIAL CLASS 2. SOCIAL FACTORS REFERNCE GROUPS FAMILY 3. PERSONAL FACTORS AGE AND LIFECYCLE STAGE OCCUPATION AND FINACIAL STATUS LIFESTYLE 4. PSYCHOLOGICAL FACTORS MOTIVATION PERCEPTIONS BELIEFS AND ATTITUDE A. CULTURAL FACTORS :- The culture factors that influence consumer-buying behavior include the following: CULTURE:- Culture is considered as a set of rules, values, beliefs, behavior and concepts that is common to and binds together the members of a society. It is usually passed on from one generation to the other. During our lives, there is constant – conscious and unconscious – pressure on us to display certain types of behavior. SUBCULTURE:- Every culture has its own set of subculture. A subculture is a culture followed by a group of people within a culture that is distinctly identified within a larger society. These groups have a similar habits, behavior patterns, shared value system, buying behavior on the basis of their age, religion, common experiences or even geographic location. To tackle the problem created by subculture differences marketers need to understand the requirements of the subculture groups and adopt strategies like altering the product, promotion, packaging or price suitable to these groups. SOCIAL CLASS:- Social class refers to the classification of members of society into a hierarchy of distinct classes so that every individual in a class has approximately same position in the society. Most societies in the world have different social class structure. Members of each social class are free to move in an upward or downward direction within the social class, on the basis of their social structure. Social class can be divided into following parts:- 1. Upper class:- This class consists of people who are rich and posses considerable wealth, for example, people with large businesses and wealthy corporate executives. 2. Upper middle class:- This class consists of well- educated people holding top class positions in middle size firms, or professionals who are successful. 3. Middle class:- This class consists of white collar workers like middle level and junior executives, sales people, academicians, small business owners, etc. 4. Lower class:- This class consists of blue collar workers like laborers, semi skilled and unskilled in the unorganized sector. B. SOCIAL FACTORS:- Family, friends, formal social groups, colleagues at work and consumer action groups influence the consumer’s buying behavior significantly. An individual’s family greatly influences the buying patterns of the individual. Social factors includes following factors:- 1. Reference Groups:- An individual’s attitude, value and behavior are influenced by different (small) groups and they have a direct or indirect influence on the individual. Buying behavior of consumers is largely influenced by the reference group to which they belong or aspire to belong. 2. Family:- A family is defined as a two or more persons related by blood, marriage or adoption and reside together. A family is a small reference group but it is prominent in influencing consumer behavior. Families go through various stages of life cycle. For example, the consumer demands of a bachelor are different from those of a newly married couple, or a family with children / no children, older couples with dependent children, older couples with no dependent children and solitary survivors. C. PERSONAL FACTORS:- These are different personal factors, which affect the buying decision process. These factors are as follows:- 1. Age and lifecycle stage:- Changes in a society have led to the creation of different categories like couples getting married late in life, single parents, etc., besides the traditional life cycle stages which included young singles, married couples and lone survivors. 2. Occupation and Financial status:- Occupation and income level of persons have a major impact on his savings and buying behavior. For example, blue collar will indulge in purchasing clothes, shoes, etc., which he cam wear to work. Similarly, a company’s chairman may buy clothes, accessories and other products and services that suit his lifestyle. 3. Life style: An individual’s way of leading his life will determine his lifestyle. Factors such as work life, interests, social groups, etc., influence the lifestyle of an individual. D. PSYCHOLOGICAL FACTORS;- Psychological factors that influence consumer buying behavior are as follows:- 1. Motivation:- A motive is a strong urge that drives a person’s activities towards unfulfilled needs and wants. Customers are influenced by a motive or a set of motives when they have unfulfilled needs. In other words, needs are the motivational elements behind the purchasing decision of customers. One of the most widely known theories, the hierarchy of need, was proposed by Abraham Maslow and explains why people are driven by particular need at particular time. 2. Perception:- Perceptions are defined as the process by which an individual selects, organizes and interpret stimuli into meaningful thoughts and pictures. Customers base their perception on their needs, wants, past experiences and something that they consider to be true. For example, a sub culture / reader who read a particular newspaper or journal might perceive it to give the true picture of the happenings around him. 3. Beliefs and Attitude:- A belief is a descriptive image or thought that an individual holds about something. People acquire beliefs and attitudes through experiences as well as learning. The beliefs and attitudes held by people, in turn, influence their buying behavior. CHAPTER -2 INTRODUCTION ABOUT INSURANCE SECTOR INDUSTRY PROFILE History of insurance Early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BCE respectively. Chinese merchants traveling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen. Achaemenian monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony and when a gift was worth more than 10,000 Derrik (Achaemenian gold coin weighing 8.35-8.42) the issue was registered in a special office. This was advantageous to those presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices. The aim of registering was that whenever the one who presented the gift registered by the court was in trouble, the monarch and the court would help him or her. Jahez, a historian and writer, writes in one of his books on ancient Iran: and whenever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much." The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when they organized guilds called "benevolent societies" which acted to care for the families and funeral expenses of members upon death. Guilds in the Middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used in case of emergency. Separate insurance contracts (i.e. insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed. Toward the end of the seventeenth century, the growing importance of London as a center for trade led to rising demand for marine insurance. In the late 1680s, Mr. Edward Lloyd opened a coffee house which became a popular haunt of ship owners, merchants, and ships’ captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market for marine and other specialist types of insurance, but it works rather differently than the more familiar kinds of insurance. Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured 13,200 houses. In the aftermath of this disaster Nicholas Barbon opened an office to insure buildings. In 1680 he established England's first fire insurance company, "The Fire Office," to insure brick and frame homes. The first insurance company in the United States provided fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732. Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia Contribution ship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention. Not only did his company warn against certain fire hazards, it refused to insure certain buildings where the risk of fire was too great, such as all wooden houses. In the United States, regulation of the insurance industry is highly Balkanized, with primary responsibility assumed by individual State insurance departments. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through a national insurance commissioner's organization. In recent years, some have called for a federal regulatory system for insurance similar to that of the banking industry. In the State of New York, which has unique laws in keeping with its stature as a global business center, Attorney General Eliot Spitzer has been in a unique position to grapple with major national insurance brokerages. Spitzer alleged that Marsh & McLennan steered business to insurance carriers based on the amount of contingent commissions that could be extracted from carriers, rather than basing decisions on whether carriers had the best deals for clients. Several of the largest commercial insurance brokerages have since stopped accepting contingent commissions and have adopted new business models. Types of insurance Any risk that can be quantified probably has a type of insurance to protect it. Among the different types of insurance are: Automobile insurance, also known as auto insurance, car insurance and in the UK as motor insurance, is probably the most common form of insurance and may cover both legal liability claims against the driver and loss of or damage to the vehicle itself. Over most of the United States purchasing an auto insurance policy is required to legally operate a motor vehicle on public roads. Recommendations for which policy limits should be used are specified in a number of books. In some jurisdictions, bodily injury compensation for automobile accident victims has been changed to No Fault systems, which reduce or eliminate the ability to sue for compensation but provide automatic eligibility for benefits. Casualty insurance insures against accidents, not necessarily tied to any specific property. Credit insurance pays some or all of a loan back when certain things happen to the borrower such as unemployment, disability, or death. Financial loss insurance protects individuals and companies against various financial risks Health insurance covers medical bills incurred because of sickness or accidents. Liability insurance covers legal claims against the insured. Life insurance provides a cash benefit to a decedent's family or other designated beneficiary, and may specifically provide for burial, funeral and other final expenses. o Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance. Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources. In that sense, they are the complement of life insurance. Total permanent disability insurance provides benefits when a person is permanently disabled and can no longer work in their profession, often taken as an adjunct to life insurance. Marine Insurance covers the loss or damage of goods at sea. Marine insurance typically compensates the owner of merchandise for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier. Political risk insurance can be taken out by businesses with operations in countries in which there is a risk that revolution or other political conditions will result in a loss. Property insurance provides protection against risks to property, such as fire, theft or weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance. Types of insurance companies Insurance companies may be classified as Life insurance companies, who sell life insurance, annuities and pensions products. Non-life or general insurance companies, who sell other types of insurance. In most countries, life and non-life insurers are subject to different regulations, tax and accounting rules. The main reason for the distinction between the two types of company is that life business is very long term in nature — coverage for life assurance or a pension can cover risks over many decades. By contrast, non-life insurance cover usually covers a shorter period, such as one year. Insurance companies are generally classified as either mutual or stock companies. This is more of a traditional distinction as true mutual companies are becoming rare. Mutual companies are owned by the policyholders, while stockholders, (who may or may not own policies) own stock insurance companies. Reinsurance companies are insurance companies that sell policies to other insurance companies, allowing them to reduce their risks and protect themselves from very large losses. The reinsurance market is dominated by a few very large companies, with huge reserves. Captive Insurance companies may be defined as limited purpose insurance companies established with the specific objective of financing risks emanating from their parent group or groups. This definition can sometimes be extended to include some of the risks of the parent company's customers. In short terms, it is an in-house self-insurance vehicle. Captives may take the form of a "pure" entity (which is a 100% subsidiary of the self-insured parent company); of a "mutual" captive (which insures the collective risks of industry members); and of an "association" captive (which self-insures individual risks of the members of a professional, commercial or industrial association). Size of global insurance industry Global insurance premiums grew by 9.7% in 2004 to reach $3.3 trillion. This follows 11.7% growth in the previous year. Life insurance premiums grew by 9.8% during the year due to rising demand for annuity and pension products. Non-life insurance premiums grew by 9.4% as premium rates increased. Over the past decade, global insurance premiums rose by more than a half as annual growth fluctuated between 2% and 10%.. Financial viability of insurance companies Financial stability and strength of the insurance company should be a major consideration when purchasing an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, the viability of the insurance carrier is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage (or coverage only from a government-backed insurance pool with less attractive payouts for losses). A number of independent rating agencies, such as Best's, provide information and rate the financial viability of insurance companies. Health insurance Health insurance, which is coverage for individuals to protect them against medical costs, is a highly charged and political issue in the United States, which does not have socialized health coverage. In theory, the market for health insurance provision should function in a manner similar to other insurance coverage, but the skyrocketing cost of health coverage has disrupted markets around the globe, but perhaps most glaringly in the U.S. Please see health insurance for a discussion of this category. Dental insurance Dental insurance, like health insurance, is coverage for individuals to protect them against dental costs. Dental insurance usually goes hand-in- hand with health insurance, with most people in the United States receiving it included in their health insurance plan from their employer. Along with receiving dental insurance from your employer, there are ways to receive dental insurance through resellers and companies for individuals and families; although this way tends to be too expensive for most people. OVERVIEW OF INDIAN INSURANCE SECTOR The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent to the country’s GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation ―Malhotra Committee‖ was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Milestones in the life insurance business in India milestone’s in the life insurance business in India Year Milestones in the life insurance business in India 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. Milestones in the general insurance business in India milestone’s in the general insurance business in India Year Milestones in the general insurance business in India 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 (Nationalisation) Act, 1972 nationalised 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. PRESENT SCENARIO OF INSURANCE INDUSTRY India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Indians, have always seen life insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice. Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerization of operations and updating of technology has become imperative in the current scenario. Foreign players are bringing in international best practices in service through use of latest technologies. The insurance agents still remain the main source through which insurance products are sold. The concept is very well established in the country like India but still the increasing use of other sources is imperative. At present the distribution channels that are available in the market are listed below. Direct selling Corporate agents Group selling Brokers and cooperative societies Banc assurance Customers have tremendous choice from a large variety of products from pure term (risk) insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional moneyback policies, which is not considered very appropriate for long-term protection and savings. There is lots of saving and investment plans in the market. However, there are still some key new products yet to be introduced - e.g. health products. The rural consumer is now exhibiting an increasing propensity for insurance products. A research conducted exhibited that the rural consumers are willing to dole out anything between Rs 3,500 and Rs 2,900 as premium each year. In the insurance the awareness level for life insurance is the highest in rural India, but the consumers are also aware about motor, accidents and cattle insurance. In a study conducted by MART the results showed that nearly one third said that they had purchased some kind of insurance with the maximum penetration skewed in favor of life insurance. The study also pointed out the private companies have huge task to play in creating awareness and credibility among the rural populace. The perceived benefits of buying a life policy range from security of income bulk return in future, daughter's marriage, children's education and good return on savings, in that order, the study adds. PROFILE OF ADITYA BIRLA GROUP The Aditya Birla Group is a multinational corporation based in Mumbai, India and operations in 20 countries including Thailand, Laos, Indonesia, Philippines, Egypt, Canada, Australia, China, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Malaysia and Korea. A US$ 24 billion conglomerate, with a market capitalization of US$ 23 billion. Over 50 per cent of its revenues flow from its operations across the world. The group is a major player in all the industry sectors it operates in. 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. The origins of the group lie in the conglomerate once held by one of India's foremost industrialists Mr. Ghanshyam Das Birla. He bequeathed most of these companies to his grandson, Mr. Aditya Vikram Birla – the father of the current Chairman of the group, Mr. Kumar Mangalam Birla. Mr. Kumar Mangalam Birla is the grandson of Mr. Basant Kumar Birla, who heads his own independent business conglomerate. Several other members of the Birla Family, own and run their independent business groups. .The group has diversified business interests and is dominant player in all the sectors in which it operates such as viscose staple fiber, metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, insulators, financial services, telecom, BPO and IT services. The origins of Aditya Birla Group can be traced back to the 19th century when Seth Shiv Narayan Birla started trading in cotton in the town of Pilani, Rajasthan. In the early part of the 20th century, Group's founding father, Ghanshyamdas Birla, expanded the group and set up industries in critical sectors such as textiles and fiber, aluminium, cement and chemicals. In 1969, Aditya Birla, the then Chairman of the Group, put the group on the global map. He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, the Philippines and Egypt. Under Aditya Birla's leadership, the group attained new heights and it became world's largest producer of viscose staple fiber, the largest refiner of palm oil, the third largest producer of insulators and the sixth largest producer of carbon black. After Aditya Birla's demise his son Kumar Mangalam Birla took over the charge of the group and under his leadership the group has sustained the numero uno position in the sectors in which it operates. Major Achievements of Aditya Birla Group Largest single location copper smelter Largest aluminium rolling company No.1 in viscose staple fibre The third largest producer of insulators The fourth largest producer of carbon black The eleventh largest cement producer and the second largest in India Among the best energy efficient fertilizer plants Among the worlds top 15 and India's top three BPO company. GROUP COMPANIES OF ADITYA BIRLA GROUP Grasim: Grasim Industries Limited was established as a textiles manufacturer in 1948. Today, Grasim deals in Viscose Staple Fiber (VSF), Cement, Sponge Iron, Chemicals and Textiles. Hindalco: Established in 1958, Hindalco deals in Aluminium and Copper and is an industry leader in both. Hindalco is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Hindalco acquired Novelist and in the process became the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia, as well as India's leading copperproducer. Aditya Birla Nuvo: Aditya Birla Nuvo is a diversified business conglomerate with interests in viscose filament yarn (VFY), carbon black, branded garments, fertilisers, textiles and insulators. Aditya Birla Nuvo, through its subsidiaries and joint ventures has made forays into life insurance, telecom, business process outsourcing (BPO), IT services, asset management and other financial services. Ultra Tech Cement: Ultra Tech Cement manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzolana Cement. It is the country's largest exporter of cement clinker. Its export market includes countries around the Indian Ocean, Africa, Europe and the Middle East. Chemical: - Aditya Birla Chemicals, the Rs 1600 crore (US$350 million) chemicals business of the Aditya Birla Group, is based in India and Thailand. The range of products includes chlor-alkali, epoxy, fluorine chemicals, peroxides, phosphates and sulphites. Customer satisfaction is ensured through timely delivery and customization of processes according to requirements. Aditya Birla Chemicals believes in caring for the environment while creating value for its stakeholders. It stretches beyond the stipulated norms to ensure a safer environment for all. Minacs:-With over 26 years of experience, Aditya Birla Minacs provides customized business process outsourcing (BPO) solutions focused on three core areas of capability: contact center solutions, integrated marketing services and knowledge process outsourcing. Minacs has more than 12,000 employees at locations in North America, Europe and Asia and has established successful industry practices with clients in the automotive, banking, financial services, insurance, telecommunications and technology verticals. INSULATORS:-In a world where efficiency powers bottom lines, reliability becomes the key driver for productivity and performance. Consistent reliability can be achieved only through a focused approach and proficient implementation of world class practices. Aditya Birla Insulators is the country's largest, and the world's fourth largest manufacturer of electrical insulators. Aditya Birla Insulators is the preferred partner of a global clientele that includes leading power utilities and national and international power equipment manufacturers. IDEA CELLULAR:- IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in March 2007. IDEA Cellular is part of the Aditya Birla Group, a US$ 24 billion corporation with a market cap of US$ 31.5 billion and in the league of Fortune 500. Anchored by an extraordinary force of over 100,000 employees belonging to 25 different nationalities, over 50% of its revenues flow from its overseas operations. Apart from the Group companies, other companies of the Aditya Birla Group are: Indian companies like PSI Data System, Trans Works, Essel Mining & Industries Ltd, Idea Cellular Ltd, Aditya Birla Insulators Ltd, Aditya Birla Retail, Bihar Caustic and chemicals Ltd, Shree Dig Vijay Cement Ltd. International companies are in Thailand, Philippines, Indonesia, Egypt, China, Australia, and Laos. COMPANY PROFILE This company is a merge between two companies Aditya Birla Group. Both these companies are famous About this company it is also known as BSLI in market this company spent their carrier just 7 years in market but now this company stand in market in a remarkable position 1. Birla Sun Life Insurance pioneered the unique Unit Linked Life Insurance Solutions in India. 2. Within 4 years of its launch, BSLI has cemented itsposition as a leading player in the Private Life Insurance Industry. 3. There has been focus on Investment Linked Insurance Products, supported with protection products to maintain leadership in product innovation. 4. Multi Distribution Channels- Direct Sales Force, Alternate Channels and Group offering convenient channels of purchase to customers. 5. Web-enabled IT systems for superior customer services. 6. First to have issued policies over the Internet. 7. Corporate governance and a high degree of transparency in all business practices and procedures. 8. First to have an operational Business Continuity Plan. 9. Strong fundamentals based on the Aditya Birla group's local insight and Sun Life financials's global expertise BIRLA SUN LIFE INSURANCE Birla sun life insurance company limited is a joint venture between the Aditya Birla Group and the sun Life Financial services of Canada. It started its operations in March 2001 after receiving its registration license in January 2001. BSLI’s core strategy since inception has been to’ create value’ for all its stakeholders. This has been driven through innovative and customer focused products and a multi channel distribution capability in individual and group insurance. The company started its operations with the launch of innovative unit-linked insurance products, being the first private life insurance company in India to do so. The company has geared up through superior value creation and technology in fulfilling its aims to provide multiple products and benefits greater investment opportunities and to provide the vast investor popular in India with better liquidity and security. The transition of the insurance industry in India from a public monopoly to a competitive environment presents interesting opportunities both to the insurance players as well as to the customers. BSLI plans to spot emerging trends and capitalize on these opportunities for the benefit of its customers. BSLI aims at being a leader in product innovation with new products designed to cater to specific customer needs. The company has a clear thrust on investment linked insurance products and believes in maximizing investment returns for the policyholders. Its unit-linked products offered varied investment options for policyholders to choose, based on their risk appetite. BSLI has been fully complying with its rural services network of the group is being tapped for this purpose. Its clients have already appreciated the company’s superior underwriting processes and infrastructure. Its direct sales force of more than 60,000 high quality licensed insurance advisors in major cities and towns in India are the company’s flag bearers. The company’s insurance advisors in major cities and towns in India are the company’s flag bearer. The company’s insurance advisors have qualified for the prestigious Million Dollar Round Table (MDRT), COT and TOT, one of the highest international honors in the life insurance industry, in all the years of its operations. 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 financials global expertise. VISION To create long term value along with market leadership. MISSION 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. Major Players Of Birla Sun Life Insurance VALUES ● Integrity ● Commitment ● Passion ● Seamlessness ● Speed 100% 74% Equity Share 26% Various products offered by BSLI are: :: Flexi Life Line :: Flexi Cash Flow :: Flexi Save Plus :: Flexi SecureLife :: 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 PRODUCT PORTFOLIO 1. Children Dream Plan :- The brief description of Children Dream plan is as follows:- Age of entry Life insured( parents):18 – 60 years Nominee( child): 30 days – 13 years Minimum Premium Rs. 5,000per year / Rs. 25,00half-yearly Minimum Sum Assured Rs. 50,000 Maximum Sum Assured No limit Minimum Term 18 years less the age of child at entry Riders Allowed ADD 2. Gold plus II The brief description of Gold plus II plan is as follows:- Age of entry 18-70 years Minimum Premium Rs. 50,000per year / Rs. 25,000half-yearly Minimum Sum Assured Rs.2,50,000 Maximum Sum Assured No limit Minimum Term 8 years PPT 3 years 3. Classic Life Premier The brief descriptions of Classic Life Premier are as follows: Age of entry 30 days- 60 years Minimum Premium Rs. 25,000per year / Rs. 12,500half-yearly Minimum Sum Assured Rs.2,00,000 Maximum Sum Assured No limit Minimum Term 10 years PPT 3 years, 5 years,10 years, whole term Riders Allowed ADD, CIBR, CIPR, CIWR,WP 4. Supreme Life The brief descriptions of Supreme Life are as follows: Age of entry 8 years – 60 years Minimum Premium Rs. 25,000per year / Rs. 12,500half-yearly Minimum Sum Assured Rs.2,00,000 Maximum Sum Assured No limit Minimum Term 10 years PPT 3 years, 5 years,10 years, whole term Riders Allowed ADD 5. Single Premium Bond: The brief descriptions of Single premium Bond are as follows: Age of entry 8- 70 years Minimum Premium Rs. 20,000per year / Rs. 10,000half-yearly Minimum Sum Assured Rs.25,000 Maximum Sum Assured 125% of the single premium amount Minimum Term 5years PPT Single time 6. Flexi Secure Life Retirement Plan II The brief descriptions of Flexi Secure Life Retirement plan II are as follows: Age of entry 18- 65 years Minimum Premium Rs. 5,000 per year/ 2500 half- yearly Minimum Sum Assured 10 times of the premium Maximum Sum Assured 10 times of the premium Minimum Term 10 years PPT Whole time 7. Term Plan: The brief descriptions of Term Plan are as follows: Age of entry 18- 55 years Minimum Premium As per age Minimum Sum Assured Rs.2,50,000 in case of single premium & Rs.2,00,000 in case of regular premium for a person fulfilling the eligibility criteria. Maximum Sum Assured 10 times of the premium Minimum Term As per policy terms 5,10, 15, 20 or 25 years PPT Whole term Riders allowed ADD,CIBR,WPR 8. Simply Life: The brief description of Simply life are as follows: Age of entry 8- 50 years Minimum Premium Rs. 10,000per year / Rs. 5,000 half yearly Minimum Sum Assured Rs.50,000 Maximum Sum Assured 5 times the annual premium amount Minimum Term 10 years PPT Whole term 9. Bima Dhan Sanchay: The brief descriptions of Bima Dhan sanchay are as follows: Age of entry 18-60 years for 5 term plan, 18-55 years for 10 term plan, 18-50 years for 15 term plan Minimum Premium Acc. To term taken Minimum Sum Assured Rs.5,000 Maximum Sum Assured Rs. 50,000 Minimum Term 5 years PPT 5, 10,15 BSLI Achievements BSLI known for best practices that were adopted by IRDA for the industry. BSLI pioneered ULIP’s in India and is known for its innovative products. BSLI has the best claim ratio in the industry- An outstanding 0.32% BSLI is the 3rd largest in the group segment. BSLI has been considered a role model for Banc assurance in the industry & has 7 bank relationships. BSLI is rapidly developing its alternate channels, with 197+ relationships, includes premier relations like AR insurance, UTI securities & Reliance retail. Improved market share: Sales growth of 138% YTD Feb’08 against private industry growth of 94% and top 7 players’ growth of 100%, increasing market share from 5.3% to 6.3%. Strong fund performance: 12 month Investment performance best in Industry for most of the leading funds. ORGANISATION CHART –FARIDKOT BRANCH AS ON 31/06/2009 TOTAL EMPLOYEES: Branch manager KUNAL DHAWAN AGENCY MANAGERS FINANCIAL ADVISORS TRAINING STUDENTS TELLE CALLERS OPERATION STAFF FUNCTIONING OF ALL DEPARTMENTS Tied Agency Tied agency is the largest distribution channel of BIRLA SUNLIFE INSURACE, comprising a large advisor force that targets various customer segments. The strength of tied agency lies in an aggressive strategy of expanding and procuring quality business with focus on sales and people development, tied agency has emerged as a robust, predictable and sustainable business model. Customer Service and Operations The operations department oils the work processes between the customer and the company to ensure consistent and quality service to the customer to streamline the operations, the operation department interfaces between the clients and the agents, the branches and the underwriters, and managers work processes. The vision at customer service is to deliver world class service at every opportunity. I.T (INFORMATION TECHNOLOGY) The information technology function at BIRLA SUNLIFE INSURANCE is committed to enable business through the use of technology .It is segmented in to four groups to enable highest level of delivery to the customer Web that provides real time information to the customers and is responsible for customer relationship management .This team works as an in house of research and development solution group , exploring new technological initiates and also caters to information needs of corporate functions in the organization. MARKETING The marketing function at BSLI covers an array of activities brand and media management, channel support, direct marketing and corporate communication .The brand and communication team is in charge of advertising, consumer research, media playing and buying and public relations that help develop and nature BSLI Identity while effectively communicating its varied products to customers FINANCE: Finance function in BSLI is committed to create an infrastructure that is aligned to shareholder expectations .Finance basically comprises of four functions .corporate planning and MIS provide feedback on strategies .This includes driving the budgeting process, providing strategic inputs for decision making and management reporting and analysis. HUMAN RESOURSE The people strategy of BSLI is „To build a committed team with a culture of innovation , learning and growth‟ .The human resourse function at BSLI drives the people strategy of the business. HR is now committed to building capability through state of the art processes . RESEARCH: Research refers to the systematic method consisting of enumerating of problem, formulating the hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solutions towards the concerned problem or in certain generalizations for some theoretical formulation. NEED FOR RESEARCH Every market has to be competitive in his operation to survive and also able to make more profits. To achieve their objectives they must be careful about their customers. They must know the satisfaction level of the customer. Customer is the king of the market. Today’s market is directed by the customer, so it is necessary for each and every type of business to know about the varying nature of their customers, by which they can provide best services to them. By this they will be able to retain the customer for a long period. All this results in increased sales, higher market share and more profits. If a company knows about the needs and behavior of its customers, then it can develop its strategies according to their need. It is also said that the cost of attracting a new customer is five times more than as existing customer. So a company should try to satisfy its customers. So that’s why ―BIRLA SUNLIFE INSURANCE LTD‖ has decided to do a research to know the buying behavior of its customers, because they want to know about the view point of its customers. OBJECTIVES OF THE RESEARCH The objectives of the research are as follows:- 1. To access the awareness of the people about the policies of the sun life. 2. To evaluate the performance of the BIRLA SUNLIFE INSURANCE LTD. 3. To know about the view points of the customers towards the BIRLA SUNLIFE INSURANCE LTD. 4. To access the level of satisfaction towards the policies of BIRLA SUNLIFE INSURANCE LTD. 5. To know about the expectation of the customers towards the different policies. 6. To give suggestions how to improve the services of BIRLA SUNLIFE INSURANCE LTD. RESEARCH METHODOLOGY Meaning of Research Methodology;- A research methodology defines what the activity of research is, how to proceed, how to measure progress, and what constitutes success. Methodology is defined as 1. "the analysis of the principles of methods, rules, and postulates employed by a discipline" or 2. "the development of methods, to be applied within a discipline" 3. "a particular procedure or set of procedures". Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. It is necessary for the researcher to know not only the research methods/ techniques but also the methodology. Researcher not only need to know how to develop certain indices or tests, how to calculate the mean, median, mode or the standard deviation or chi-square, how to apply a particular research technique, but they also need to know which of these methods or techniques, are relevant and which are not. Research methodology to be adopted for the study is as follows:- Identification of the problem:- The research project relates to „CONSUMER BEHAVIOR TOWARDS BIRLA SUNLIFE INSURANCE LTD‟. In it the problem proposed is to be researched is find out; what is the behavior of the consumer towards the different policies or the investment plans of the BIRLA SUNLIFE INSURANCE LTD. Planning the research design:- A suitable design has to be planned for any market research. It is the market plan specifying the procedure for collecting & analyzing the needed information. As per objective of the study mainly there are four types of research design viz: experimental, diagnostic, descriptive & exploratory. Here exploratory research design is proposed with focus on discovering of ideas & insight about the particular problem. Planning the sample design:- The target for the study was consumers of Ferozepur. Survey has been done using questionnaire method, open and close- ended questions being included in the questionnaire. The secondary data for the research study has been collected from various magazines, newspapers, journals‟, books and websites. Major market players in the products the relevant areas have also been consulted for the research. Sample size:- The sample size of the research project has been taken 100 of the customers of Ferozepur. Data collection:- The relevant data for the research project is hybrid of primary and secondary data. Primary data:- Using personal interview technique, survey, questionnaire & observation method the data has been collected from targeted focus groups, which are customers. The primary data collection for judgment sampling has done. This purpose has been formatted with both open & close ended structured questions. Secondary data:- In addition to the reactions of the selected consumers segments, the factual information historic background including the sales volume by various manufactures of the product has been collected with the help of various trade/business journals, company magazines, brochures, and company reports and concern trade association reports. CONTRIBUTION EXPECTED OF THE STUDY The study will be useful to identify the following things: 1. To access the awareness level of the people regarding the different plans of the “BIRLA SUNLIFE INSURANCE LTD.” 2. To know about the different view points of the customers regarding the different plans of the “BIRLA SUNLIFE INSURANCE LTD.” 3. To access satisfaction level of the customers regarding the “BIRLA SUNLIFE INSURANCE LTD.” 4. Suggestions and recommendations for attracting the customers. LIMITATIONS OF THE STUDY Limitations of the study are as follows:- 1. The preparation and interpretation of data may not be 100% free from errors and may be effected by the respondents biased mindset to some extend. 2. Sampling size of targeted customer is small, so the response may not give true reflections of the mental framework of the population. 3. Judgment/ convenience sampling will be used, so the data may not be of that quality level as obtained by complete enumeration survey which is not possible due to financial and time constraints. ANALYSIS Q1. Are you aware about BIRLA SUNLIFE INSURANCE LTD? YES ( ) NO ( ) TABLE NO.1 RESPONSE NO. OF RESPONDENTS PERCENTAGE YES 100 100% NO 00 0% TOTAL 100 100% CHART 1: 120 YES TOTAL 100 no. of respondents 80 Series1 60 Series2 40 20 YES NO NO TOTAL 0 YES NO TOTAL response Interpretation: The above analysis shows that all the respondents are aware about Birla Sun Life Insurance ltd. Q2. How do you come to know about BIRLA SUNLIFE INSURANCE LTD? TABLE NO.2 MEDIA NO. OF RESPONDENTS PERCENTAGE T.V 13 13% NEWSPAPER 24 24% AGENTS 52 52% FRIENDS 9 9% ANY OTHER 2 2% TOTAL 100 100% CHART 2: ANY FRIENDS OTHER T.V 9% 2% 13% T.V NEWSPAPER NEWSPAPE AGENTS R FRIENDS 24% ANY OTHER AGENTS 52% Interpretation: The above table shows that out of the 100 respondents 52 respondents came to know about Birla Sun Life from agents, 24 from newspapers, 13 from T.V., 9 from friends and 2 from any other sources. Q3. Are you aware about the ULIP products offered by BIRLA SUNLIFE INSURANCE? TABLE NO.3 RESPONSE NO. OF RESPONDENTS PERCENTAGE YES 98 98% NO 2 2% TOTAL 100 100% CHART 3: NO 2% YES NO YES 98% INTERPRETATION: The above analysis shows that out of 100 respondents 98 respondents are aware about ulip products of Birla Sun Life Insurance and only 2 respondents are not aware about ulip products of Birla Sun Life Insurance. This shows that mostly people are aware about ulip products of Birla Sun Life Insurance. Q4. Are you satisfied with the policies provided by BIRLA SUN LIFE INSURANCE LTD? TABLE NO.3 RESPONSE NO. OF RESPONDENTS PERCENTAGE YES 74 74% NO 26 26% TOTAL 100 100% CHART NO.4 Sstisfaction level NO 26% YES NO YES 74% INTERPRETATION: From the above analysis we came to know that out of 100 respondents 74 respondents are satisfied with the policies provided by Birla Sun Life insurance and 26 respondents are not satisfied with the policies provided by Birla Sun Life insurance. It means that mostly people are satisfied with the policies provided by Birla Sun Life Insurance ltd. Q5.How you rate the policies provided by BIRLA SUNLIFE? TABLE NO.5 RESPONSE NO. O FRESPONDENTS PERCENTAGE GOOD 9 9% AVERAGE 16 16% VERY GOOD 55 55% EXCELLENT 20 20% TOTAL 100 100% CHART 5 Rating the policies GOOD EXCELLENT 9% 20% AVERAGE 16% GOOD AVERAGE VERY GOOD EXCELLENT VERY GOOD 55% INTERPRETATION: The above analysis shows that out of 100 respondents 55 rate the policies of Birla Sun Life Insurance as very good, 16 rate it as average, 9 rate it as good and 20 rate it as excellent. Q6.What you like in the policies of BIRLA SUNLIFE INSURANCE? TABLE NO.6 RESPONSE NO. O FRESPONDENTS PERCENTAGE RATE OF 38 38% RETURN AFFORDABLE 8 8% PREMIUM LOW PREMIUM 45 45% ALOCATION CHARGES SURRENDER 9 9% VALUE TOTAL 100 100% CHART 6: INTERPRETATION: The above table shows that out of 100 respondents 45 respondents like the policy because of low premium allocation charges, 38 like it because of rate of return, 9 like it because of surrender value and 8 like it because of affordable premium. Q7. How you feel the behavior of BSLI‟s employers while interacting with them? TABLE NO.5 RESPONSE NO. O FRESPONDENTS PERCENTAGE GOOD 4 4% AVERAGE 12 12% VERY GOOD 47 47% EXCELLENT 37 37% TOTAL 100 100% CHART 7: INTERPRETATION: The above analysis shows that out of 100 respondents 4 respondents feel the behavior of BSLI’s employers as good, 12 feel the behavior of BSLI’s employers as average, 47 feel the behavior of BSLI’s employers as very good, and 37 feel the behavior of BSLI’s employers as excellent. Q8. Do you think that BSLI is reliable in the coming future? TABLE NO.8 RESPONSE NO. OF RESPONDENTS PERCENTAGE YES 89 89% NO 11 11% TOTAL 100 100% CHART 8: INTERPRETATION: The above table shows that out of the 100 respondents 89 respondents feel that the BSLI is reliable in the coming future and 11 respondents feel that BSLI is not reliable in the coming future. Q9. Do you think that BIRLA SUNLIFE is working better than its competitors? TABLE NO.9 RESPONSE NO. OF RESPONDENTS PERCENTAGE YES 74 74% NO 26 26% TOTAL 100 100% CHART 9: INTERPRETATION: The above table shows that out of 100 respondents 74 respondents think that BSLI is working better than its competitors and 26 respondents think that BSLI is not working better than its competitors. Q10. Are you satisfied with the after sales services provided by BSLI? TABLE NO.10 RESPONSE NO. OF RESPONDENTS PERCENTAGE YES 88 88% NO 12 12% TOTAL 100 100% CHART 10: INTERPRETATION: From the above analysis I came to know that out of 100 respondents 88 respondents are satisfied with the after sales services provided by Birla Sun Life Insurance ltd and 12 respondents are not satisfied with the after sales services provided by Birla Sun Life Insurance ltd. This means that mostly people are satisfied with the after sales services provided by Birla Sun Life Insurance ltd. Q11. Do you think that the plans provided by BIRLA SUNLIFE are beneficial? TABLE NO.11 RESPONSE NO. OF RESPONDENTS PERCENTAGE YES 78 78% NO 22 22% TOTAL 100 100% CHART 11: INTERPRETATION: The above table shows that out of 100 respondents 78 respondents think that the plans provided by Birla Sun Life are beneficial and 22 respondents think that the plans provided by Birla Sun Life are not beneficial. Q12. Last financial year BSLI was at 7th position but now it is at 3rd position. Do you think that BSLI will be the top insurance company in private sector in this financial year? TABLE NO.12 RESPONSE NO. OF RESPONDENTS PERCENTAGE YES 79 79% NO 21 21% TOTAL 100 100% CHART 12: INTERPRETATION: According to the above table out of 100 respondents 79 respondents feel that BSLI will be the top company in the private sector in future and 21 respondents feel that BSLI will not be the top company in the private sector in future. Q13. According to you what should be the maturity time of your BSLI policy? TABLE NO.13 RESPONSE NO. OF RESPONDENTS PERCENTAGE LESS THAN 5 YEARS 5 5% 5-10 YEARS 40 40% ABOVE 15 YEARS 55 55% TOTAL 100 100% CHART 13: INTERPRETATION: The above analysis shows that out of 100 respondents 5 respondents think that the maturity time of BSLI policy should be less than 5 years, 40 respondents think that the maturity time of BSLI policy should be 5- 10 years and 55 respondents think that the maturity time of BSLI policy should be above 55 years. Q14. If you are given an opportunity then which company policy will you prefer? TABLE NO.14 RESPONSE NO. OF RESPONDENTS PERCENTAGE BAJAJ ALLIANZ 4 4% ICICI PRU 19 19% LIC 6 6% BIRLA SUN LIFE 68 68% MAX NEW YORK 3 3% TOTAL 100 100% CHART 14: INTERPRETATION: The above table shows that out of 100 respondents 3 respondents will prefer Max New York policy, 4 respondents will prefer Bajaj Allianz policy, 6 respondents will prefer LIC policy, 19 respondents will prefer ICICI policy and 68 respondents will prefer BSLI. FINDINGS OF THE STUDY Findings of the research study are as follows:- 1. From the survey, we came to know that most of the people are aware about the ―BIRLA SUN LIFE INSURANCE LIMITED‖. 2. Most of the people came to know about the ―ICICI PRUDENTIAL LIFE INSURANCE LIMITED‖ from the agents and newspaper media. This shows that other promotional media activities like radio, hoardings and postures are missing which are on high these days. 3. From the survey we came to know that mostly people are aware about the ULIP products offered by BIRLA SUN LIFE INSURANCE LIMITED. 4. From the survey, we came to know that most of the people those who are insured are satisfied with the policies provided by BIRLA SUN LIFE INSURANCE LIMITED. 5. The survey shows that most of the people rate the policies of BIRLA SUN LIFE INSURANCE are very good but not excellent. This means that they want something extra in their policies. 6. The survey shows that mostly people like low premium allocation charges and rate of return in the policies of BIRLA SUN LIFE INSURANCE LIMITED. 7. From the survey, we came to know that most of the people like the behavior of the BSLI’s employees as very good. This means that they treat their customers well. 8. From the survey, we came to know that most of the people have reliability in ―BIRLA SUN LIFE INSURANCE LIMITED‖. 9. From the survey, we came to know that ―BIRLA SUN LIFE INSURANCE LIMITED‖ is working better than its competitors or in the other words it is satisfying the customers. 10. From the survey, we came to know that most of the people are satisfied with the after sales services of the ―BIRLA SUN LIFE INSURANCE LIMITED‖. But there were some customers who were saying that they are not getting proper information regarding their policies at right time. 11. The survey shows that most of the people think that the plans of BSLI are beneficial. 12. The survey shows that mostly people think that BSLI will be the top company in private sector in coming future. 13. From the survey, we came to know that people want the policies which have maturity period of above 15 years. This means that customers want long term policies. 14. In the survey, when we asked the respondents which company’s policy will they prefer, most of them preferred the ―BIRLA SUN LIFE INSURANCE LIMITED‖. 16. From the survey, we came to know that ―BIRLA SUN LIFE INSURANCE LIMITED‖ has a very good image among the people. This shows that people believe in brand name of ―BIRLA SUN LIFE INSURANCE LIMITED‖. SUGGESTIONS AND RECOMENDATIONS The suggestion and recommendations are as follows 1. It is suggested that company need to establish new branches in villages and small cities by this company can move more better 2. There should be cash deposit facility in each and every branch of the company so that customer can get better services 3. There should be limit of financial advisor under agency manager and the limited amount of these advisor can handle it easily 4. The company should also need to begin some small duration and small amount of investment because in INDIA there are many peoples who are working in poor line or below poverty line 5. The company has to start monthly premium plans to attract the customers 6. They need to make some presentation among the small villages this make people education about insurance sector 7. Their is need to use proper advertisement channels to make a good brand image 8. There should need to attract the advisors there is need to pay some basic salary 9. In this survey I also get that maximum customers changing their mind now they going to prefer BSLI products. 10. From this survey I also get now BIRLA SUNLIFE INSURANCE having a good brand image in the eyes of customers. QUESTIONNAIRE PERSONAL DETAIL NAME_______________________ ADDRESS____________________________ _______________________________ CONTACT NO._________________________ OCCUPATION_________________________ SERVICE ( ) BUSINESS ( ) STUDENT ( ) PROFESSION ( ) Q1. Are you aware about BIRLA SUNLIFE INSURANCE LTD? YES ( ) NO ( ) Q2. How do you come to know about BIRLA SUNLIFE INSURANCE LTD? T.V. ( ) NEWSPAPER ( ) AGENT ( ) FRIEND ( ) ANY OTHER ( ) Q3. Are you aware about the ULIP products offered by BIRLA SUNLIFE INSURANCE ? YES ( ) NO ( ) Q4. Are you satisfied with the policies provided by BIRLA SUNLIFE INSURANCE LTD? YES ( ) NO ( ) Q5.How you rate the policies provided by BIRLA SUNLIFE? GOOD ( ) AVERAGE ( ) VERY GOOD ( ) EXCELLENT ( ) Q6.What you like in the policies of BIRLA SUNLIFE INSURANCE ? RATE OF RETURN ( ) AFFORDABLE PREMIUM ( ) LOW PREMIUM ALLOCATION CHARGES ( ) SURRENDER VALUE ( ) Q7. How you feel the behavior of BSLI‟s employers while interacting with them? GOOD ( ) VERY GOOD ( ) AVERAGE ( ) EXCELLENT ( ) Q8. Do you think that BSLI is reliable in the coming future? YES ( ) NO ( ) Q9. Do you think that BIRLA SUNLIFE is working better than its competitors ? YES ( ) NO ( ) Q10. Are you satisfied with the after sales services provided by BSLI? YES ( ) NO ( ) Q11. Do you think that the plans provided by BIRLA SUNLIFE are beneficial ? YES ( ) NO ( ) Q12. Last financial year BSLI was at 7th position but now it is at 3rd position. Do you think that BSLI will be the top insurance company in private sector in this financial year? YES ( ) NO ( ) Q13. According to you what should be the maturity time of your BSLI policy? LESS THAN 5 YEARS ( ) 5 – 10 YEARS ( ) ABOVE 15 YEARS ( ) Q14. If you are given an opportunity then which company policy will you prefer? BAJAJ ALLIANZ ( ) ICICI PRU. ( ) LIC ( ) BIRLA SUNLIFE ( ) MAX NEW YORK ( ) Q15. Any suggestions and recommendation ? _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ THANKS. BIBLIOGRAPHY http://www.adityabirla.com/our_companies/joint_ventures/birlasun life_insurance.htm http://en.wikipedia.org/wiki/Consumer_behaviour http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_Aboutus/C ompany_Profile/abtus_comprofile.aspx http://www.birlasunlife.com/birlasunlife/index.aspx http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/I ndividual/Protection/bsl_termplan.aspx http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_InsPlans/I ndividual/Savings/bsl_goldplus_II.aspx http://www.cs.indiana.edu/mit.research.how.to/section3.12.html http://encyclopedia.thefreedictionary.com/Research+methodology Books: 1. Philip kottler, “Marketing Management” 2. Rajan saxena. “Marketing Management” 3. Research Methodology by Kothari. SWOT ANALYSIS STRENGTHS 1. Financial Soundness 2. Large Customer Base 3. Brand Name 4. Customer loyalty 5. Flexibility 6. Continues Growth 7. Good Image WEAKNESS 1. Lack of branches in rural areas. 2. Because of non availability of electronic cash services the monthly premium facility can not be provided to the spoke branch customer 3. Non availability of cash deposit in spoke branches 4. Non availability of intranet facility. 5. Lack of traditional plans. OPPURTUNTIES 1. Looking to establish their branches in small cities and villages 2. Looking to cover large insured people 3. Looking to launch new products in market to attract customer 4. Looking to reach at first position. 5. Plan to produce more MDRT people. THREATS 1. Mutual funds. 2. LIC 3. Max new York life insurance 4. Share Market 5. People are not Interested making investment in insurance sector 6. Kotak Mahindra life insurance 7. ICICI Prudential life insurance CONCLUSION The training period has been a very valuable experience for me from the entire study conducted. I became well acquainted with the ―BIRLA SUN LIFE INSURANCE LIMITED‖ and the various processes followed by it. The market share of ―BIRLA SUN LIFE INSURANCE LIMITED‖ is 40 % for the last quarter. During the training period we came to know that ―BIRLA SUN LIFE INSURANCE LIMITED‖ has a very strong customer base. The employees of ―BIRLA SUN LIFE INSURANCE LIMITED‖ are very dedicated towards their work and working for the betterment of the organization. The policies provided or offered by the ―BIRLA SUN LIFE INSURANCE LIMITED‖ are very beneficial for the various type of customers. During the survey of our project report we came to know that people are very satisfy with the policies of the company and they have the reliability regarding their investments. Working with the ―BIRLA SUN LIFE INSURANCE LIMITED‖ we came to know that people want low premium and monthly premium plans. Most of the people are aware about the ―BIRLA SUN LIFE INSURANCE LIMITED‖ but the people of villages are not too much aware about it, so company should try to advertise itself through the radio by which the people of villages can also come to know about it. Through the survey we also came to know that ―BIRLA SUN LIFE INSURANCE LIMITED‖ has a very strong brand image among the people and it is the major competitor of LIC, MAX NEW YORK, and BAJAJ ALLIANZ.
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