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CHAPTER 1
INTRODUCTION TO
STUDY
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STUDY OF CONSUMER BEHAVIOUR TOWARDS LIFE
INSURANCE PRODUCTS
When faced with an unexpected accident, we feel need of security that wont instigate us to beg for
money at the eleventh hour. Any kind of protection or net safety is welcomed rather than having
nothing.
Insurance in the simplest term is that you pay a lump sum to get leverage or a protection against an
incident of a large magnitude so when the unexpected misfortune is encountered, the insurance
company can step in helping you out to sail through dirt.
Insurance is a form ofrisk managementprimarily used to hedge against the riskof a
contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from
one entity to another, in exchange for payment. An insurer is a company selling the insurance; the
insured, or policyholder, is the person or entity buying the insurance policy. The amount to be
charged for a certain amount of insurance coverage is called the premium. Risk management, the
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practice ofappraising and controlling risk, has evolved as a discrete field of study and practice.
The transaction involves the insured assuming a guaranteed and known relatively small loss in the
form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the
insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance
policy, which details the conditions and circumstances under which the insured will be financially
compensated.
. In words of Chief Justice Tindal, Insurance is a contract in which a sum of money is paid by the
assured in consideration of the insurer's incurring the risk of paying larger sum upon a given
contingency. In its legal aspects it is a contract whereby one person agrees to indemnify another
against a loss which may happen or to pay a sum of money to him on the occurring of a particular
event. All contracts of insurance (except marine insurance) may be verbal or in writing, but
practically contracts of assurance are included in a document.
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Characteristics of insurance
Risks which can be insured by private companies typically share seven common characteristics:-
1. Large number of similar exposure units: Since insurance operates through pooling
resources, the majority of insurance policies are provided for individual members of large
classes, allowing insurers to benefit of the law of large numbers in which predicted losses are
similar to the actual losses. Exceptions include Lloyd's of London, which is famous for
insuring the life or health of actors, sports figures and other famous individuals. However, all
exposures will have particular differences, which may lead to different premium rates.
2. Definite loss: The loss takes place at a known time, in a known place, and from a
known cause. The classic example is death of an insured person on a life insurance
policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion.
Other types of losses may only be definite in theory. Occupational disease, for instance, may
involve prolonged exposure to injurious conditions where no specific time, place or cause is
identifiable. Ideally, the time, place and cause of a loss should be clear enough that a
reasonable person, with sufficient information, could objectively verify all three elements.
3. Accidental loss: The event that constitutes the trigger of a claim should be fortuitous,
or at least outside the control of the beneficiary of the insurance. The loss should be pure, in
the sense that it results from an event for which there is only the opportunity for cost. Events
that contain speculative elements, such as ordinary business risks or even purchasing a
lottery ticket, are generally not considered insurable.
4. Large loss: The size of the loss must be meaningful from the perspective of the
insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of
issuing and administering the policy, adjusting losses, and supplying the capital needed to
reasonably assure that the insurer will be able to pay claims. For small losses these latter
costs may be several times the size of the expected cost of losses. There is hardly any point
in paying such costs unless the protection offered has real value to a buyer.
5. Affordable premium: If the likelihood of an insured event is so high, or the cost of
the event so large, that the resulting premium is large relative to the amount of protection
offered, it is not likely that the insurance will be purchased, even if on offer. Further, as the
accounting profession formally recognizes in financial accounting standards, the premium
cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If
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there is no such chance of loss, the transaction may have the form of insurance, but not the
substance
6. Calculable loss: There are two elements that must be at least estimable, if not formally
calculable: the probability of loss, and the attendant cost. Probability of loss is generallyunempirical exercise, while cost has more to do with the ability of a reasonable person in
possession of a copy of the insurance policy and a proof of loss associated with a claim
presented under that policy to make a reasonably definite and objective evaluation of the
amount of the loss recoverable as a result of the claim.
7. Limited risk of catastrophically large losses: Insurable losses are
ideally independent and non-catastrophic, meaning that the losses do not happen all at once
and individual losses are not severe enough to bankrupt the insurer; insurers may prefer to
limit their exposure to a loss from a single event to some small portion of their capital
base. Capital constrains insurers' ability to sell earthquake insurance as well as wind
insurance in hurricane zones. In the US, flood riskis insured by the federal government. In
commercial fire insurance it is possible to find single properties whose total exposed value is
well in excess of any individual insurer's capital constraint. Such properties are generally
shared among several insurers, or are insured by a single insurer who syndicates the risk into
the reinsurance market
8. Capital constraint. Such properties are generally shared among several insurers, or
are insured by a single insurer who syndicates the risk into the reinsurance market
PRINCIPLES OF INSURANCE
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Basic principles of insurance:-
The following are the basic essentials 'or requirements of insurance irrespective of the type of
insurance concerned.
1. Utmost good faith
All types of contracts of insurance depend upon the contracts of utmost good faith. Both parties
(insurer and the insured) in the contract must disclose all material facts for the benefit of each other.
False information or non-disclosure of any important fact makes the contract avoidable. So the
conditions to show utmost good faith are very strict on the part of the insured.
2. Insurable Interest
The insured must possess an insurable interest in the object insured. It may be defined as a financial
interest in the subject matter of contract. The presence of insurable interest is a legal requirement. So
an insurance contract without the existence of insurable interest is not legally valid and cannot be
claimed in a Court. The object of this principle is to prevent insurance from becoming a gambling
contract.
3. Principle of indemnity
All types of contracts except life and personal accident insurance are contract of indemnity.
According to them, the insurer undertakes to indemnify the insured against a loss of the subject
matter of insurance due to insured cause. In life assurance the question of loss and, therefore, of its
indemnification does not rise. Because the loss of life cannot be estimated in term of money. The
principle of indemnity is based on the idea that the assured in the case of loss only shall be
compensated against the actual total loss. But if no event happens, the insured has not to receive any
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amount, so in this case the premiums paid by him become the profit of the Insurer4. Doctrine of
subrogation
This principle applies to the contract of indemnity only i.e. marine and fire. It lays down a principle
which is quite equitable. According to this doctrine, where a loss occurs and the insurer pays as for a
total loss, he is entitled to all the rights and remedies which the insured has against a third party in
respect of loss so paid for. It prevents the insured being indemnified from two sources in respect of
the same loss. Suppose A has damaged B is motor car negligently. If he pays B is loss in full. B
cannot collect the same from the insurance company. On the other hand if B applied to his insurance
company for indemnity under his policy, he will not be permitted to collect the damages from A. In
the latter case the insurance company will be entitled to collect that amount.
4. Doctrine of subrogation
This principle applies to the contract of indemnity only i.e. marine and fire. It lays down a principle
which is quite equitable. According to this doctrine, where a loss occurs and the insurer pays as for a
total loss, he is entitled to all the rights and remedies which the insured has against a third party in
respect of loss so paid for. It prevents the insured being indemnified from two sources in respect of
the same loss. Suppose A has damaged B is motor car negligently. If he pays B is loss in full. B
cannot collect the same from the insurance company. On the other hand if B applied to his insurance
company for indemnity under his policy, he will not be permitted to collect the damages from A. In
the latter case the insurance company will be entitled to collect that amount
5. Doctrine of proximate cause
This principle is found very useful when the loss occurred due to series of events. It means that in
deciding whether the loss has arisen through any of the risks insured against, the proximate or the
nearest cause should be considered. To take an illustration in one case where a policy holder sustains
an accident while hunting. He was unable to walk after the accident and as a result of lying on wet
ground before being picked up, he suffered pneumonia. There was an unbroken change of cause
between the accident and the death, and the proximate cause of the death, therefore, was the accident
and not the pneumonia.
6. Cancellation
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Both parties have right to cancel the policy before its expiry date. The period of .the policy comes to
an end on the cancellation of policy. So the protection provided by the insurer to the insured stops
from the date of such cancellation. The premium received by the insurance company is also
returnable to the insured.
7. Attachment of risk
Without the attachment of definite risk to the policy, the contract of insurance cannot be in force. So
in this case the consideration fails and the premium received by the insurance company must be
returned.
8. Mitigation of loss
When the event insured against takes place, the policy holder must do every thing to minimize the
loss and to save what is left. This principle makes the insured more careful in respect of this insured
property.
9. Arbitration
Most fire and accident insurance policies contain an arbitration clause which provides for referring'
to differences to an arbitration. The arbitrator is to be appointed in writing by the parties in
difference. The object of this clause is to reduce litigation.
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CHAPTER 2
COMPANY PROFILE
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Vision:-
To be a world class provider of financial security to individuals and corporate and to be amongst the
top three private sectors life insurance companies in India.
Mission:-
To be the first preference of our customers by providing innovative, need based life insurance and
retirement solutions to individuals as well as corporate. These solutions will be made available by
well-trained professionals through a multi channel distribution network and Superior technology.
Our endeavor will be to provide constant value addition to customers throughout their relationship
with us, within the regulatory framework. We will provide career development opportunities to our
employees and the highest possible returns to our shareholders.
Values:-
Integrity: Honesty in every action.
Commitment: Deliver on the promise
Passion: Energized action
Seamlessness: Boundary less in letter & spire
Speed: One step ahead always
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ADITYA BIRLA GROUP PROFILE
A US $40 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored
by an extraordinary force of over 133,000 employees, belonging to 42 different nationalities. The
Group has been ranked Number 4 in the Global 'Top Companies for Leaders' survey and ranked
Number 1 in Asia Pacific for 2011. 'Top Companies For Leaders' is the most comprehensive study of
organizational leadership in the world conducted by Aon Hewitt, Fortune Magazine and RBL (a
strategic HR and Leadership Advisory Firm
Over 53 per cent of its revenues flow from its overseas operations. The Group operates in 36
countries Australia, Austria, Bangladesh, Brazil, Canada, China, Egypt, France, Germany,
Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos, Luxembourg, Malaysia,
Myanmar, Philippines, Poland, Russia, Singapore, South Africa, Spain, Sri Lanka, Sweden,
Switzerland, Tanzania, Thailand, Turkey, UAE, UK, USA and Vietnam.
Globally, the Aditya Birla group is:
A metals powerhouse, among the worlds most cost-efficient aluminum and copper producers.
Hindalco-Novelis is the largest aluminum rolling company. It is one of the three biggest producers of
primary aluminium in Asia, with the largest single location copper smelter.
No.1 in viscose staple fibre.
No.1 in carbon black
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The fourth-largest producer of insulators
The fifth-largest producer of acrylic fibre
Among the top 10 cement producers
Among the best energy-efficient fertiliser plants
The largest Indian MNC with manufacturing operations in the USA
In India:
A top fashion (branded apparel) and lifestyle player
The second-largest player in viscose filament yarn
The largest producer in the chlor-alkali sector
Among the top three mobile telephony companies
A leading player in life insurance and asset management
Among the top two supermarket chains in the retail business
Among the top 10 BPO companies
Revenues of Rs. 1,50,000 crore
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come
in the way of the need to keep learning afresh, to keep experimenting.
Beyond business - The Aditya Birla Group:
Works in 3,000 villages.
Reaches out to seven million people, annually through the Aditya Birla Centre for
Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla.
Focuses on healthcare, education, sustainable livelihood, infrastructure and espousing social reform
in India, Asia, Egypt, Philippines, Thailand, Laos, Indonesia, Korea and Brazil
In India:
Our Group runs 42 schools, which provide quality education to 45,000 children. Of these,
over 18,000 children receive free education.
Its 18 hospitals tend to more than a million villagers.
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operations in 1857. Today, the Group's footprint extends to 36 countries and its revenues are US$40
billion
Major Subsidiaries and Associates:
Aditya Birla Nuvo
AV Cell, Canada
AV Nackawic, Canada
Grasim Industries Limited
Hindalco Industries Limited
UltraTech Cement Limited
Aditya Birla Minacs Worldwide Limited
Samruddhi Cement
Novelis Inc.
Aditya Birla Minerals
Aditya Birla Chemicals (India)Limited
Utkal Alumina International Limited
DahejHarbour& Infrastructure Limited
Aditya Birla Science and Technology Company Limited
Tubed Coal Mines Limited
Birla Sun Life Asset Management Company Limited
Aditya Birla Finance Limited
Aditya Birla Money Mart Limited
Aditya Birla Money Limited
Aditya Birla Insurance Brokers
Aditya Birla Capital Advisors Private Limited
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Idea CellularLimited
Madura Fashion & Lifestyle
Essel Mining and Industries
Aditya Birla Retail
Thai Rayon
Indo Thai Synthetics
Thai Acrylic Fibre
Thai Carbon Blac
Aditya Birla Chemicals (Thailand) Limited
Birla Laos Pulp and Plantations Company Limited
Indo Phil Textile Mills
Indo Phil Cotton Mills
Indo Phil Acrylic Manufacturing Corporation
Pan Century Surfactants Inc.
PT Indo Bharat
PT Elegant Textile IndustryPT Sunrise Bumi Textiles
PT Indo Liberty Textiles
PT Indo Raya Kimia
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SUNLIFE FINANCIAL
Sun Life Financial Inc. 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. Sun Life Financial Inc. is a leading player in the life insurance market in
Canada.
i. Vision: - Were committed to making a difference in the communities in which we work and
live around the world.
ii. Mission: - Our mission is to help customers achieve lifetime financial security. Our vision is
to be an international leader in protection and wealth management. Our values are the
foundation of our day-to-day business operations.
iii. Integrity: - We are committed to the highest standards of business ethics and
good governance.
iv. Engagement: - We value our diverse, talented workforce and encourage, support and reward
them in contributing to the full extent of their potential.
v. Customer Focus: - We provide sound financial solutions for our customers and always work
with their interests in mind.
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vi. Excellence: - We pursue operational excellence through our dedicated people, our
qualityproducts and services, and our value-based risk management.
vii. Value: - We deliver value to the customers and shareholders we serve and to the
communities in which we operate.
OUR BUSINESS
At Sun Life, our business is focused on helping customers achieve lifetime financial security. From
Toronto to Tianjin; our goal is to help ensure lifes brighter for the millions of people who already
trust ourproducts and services for their financial well-being.
We provide a range of protection and wealth management products and services in key markets,
including Canada, the United States, the United Kingdom,Ireland,Hong Kong, the Philippines,
Japan, Indonesia,India, China and Bermuda. Read more about Sun Lifes global presence.
We have a long history in financial services. Experience, financial strength and our global vantage
point are a powerful combination in all our markets. They help us provide our clients with relevant
and smart life insurance,health, dental and disability insurance, education savings, medical
insurance, investing and retirement planning services, annuities, and a host of other financial security
products, specifically designed for various life stages and goals.
But were committed to more than great products. We are also committed to operating in a socially
responsible way and acting as good corporate citizens everywhere we live and do business
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CORPORATE GOVERNANCE
Our business is based on trust. Trust in our products and services. Trust that well guide the company
in a way that upholds the confidence of our customers, shareholders and business partners around the
world.
Building trust and maintaining our reputation depends on the decisions we make, the values we
maintain, our leadership strength and the personal integrity of each and every employee. We take
seriously the responsibility inherent in helping our customers secure their financial futures. Its why
weve developed and adhere to guidelines for strong and consistent governance throughout the
organization.
We have a strong and independent Board of Directors, who regularly reviews its corporate
governance processes and practices. Our risk management program includes disciplined processes to
mitigate operational, market and other risks.
Its all part of good corporate governance. And its at the heart of what we do every day.
Ethics, integrity and our Code From our earliest beginnings, ethics and integrity have been
cornerstones of the way we do business. They are part of why we have such a strong reputation, andwhy our employees are proud to work for us.
1. Share Holding Pattern: In Birla-Sun Life, the two companies are having shareholding
pattern as follows:
74 % - Aditya Birla Group
26 % - Sun Life Financial Group
2. The group has 3 businesses:
Mutual Funds
Wealth Management
Life Insurance
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3. Many Ones with Birla Sun Life Insurance: BSLI is a company that has a very unique
contribution in the history of Insurance sector. The company not only has varying plans and funds,
rather also is a pioneer in many aspects. These pioneering features of BSLI are as follows:
4. Free Look Period: BSLI offers its policyholders with a free look period of 15 days. Client
gets freedom to have an in-depth look over all the terms and conditions regarding his/her life-
insurance policy. If he finds policy not worth opting for, he can also return the policy, but at BSLI,
co. people ensures this not to happen.
5. Bancassurance: BSLI pioneered Bancassurance in India. Bancassurance means to
include Banks as one of the distribution channels with the company. BSLI is the first company,
which realized that banks, with their huge customer base and strong customer loyalty, are a
readymade platform to acquire new business on a more cost effective and sustainable basis.
6. Unit Linked Life Insurance Plans: BSLI was the first in India to introduce Unit Linked
Plans. A ULIP is an auspicious coming together of security from life
7. Insurance and earnings from investment. Which means, apart from securing the future
they offer efficient returns. These plans provide the customer with a certain number of units, in the
same way as a mutual-fund holder gets units. ULIPs offer market-linked returns to policyholders.
Sales Illustrations: BSLI is the first company to introduce Sales Illustrations in the Insurance
Industry. Sales people of BSLI give demonstrations of fund Performance on two points of
projections i.e. on 6% and 10%. Now IRDA has also made it mandatory to have sales illustrations.
BSLIs has launched Century SIP, a unique systematic investment plan offering an opportunity to
create wealth with as little as Rs 1000 per month plus a life insurance cover of up to 100 times the
monthly installment.This plan comes along with freeterm insurance for an individual up to 55 years
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of age. The life insurance cover comes at no extra cost to the investor. The cover is hassle free.
The investor need not go thru any medial test to avail of the life cover. All an investor needs to do is
enroll for CSIP & sign a Declaration of Good Health. In case of unfortunate demise of investor the
insurance claim will be directly paid to the nominee by the insurance company (Birla Sun Life
Insurance Company).Announcing the launch of Century SIP, Anil Kumar, CEO, and Birla Sun Life
MF said, This offering touches all aspects of an investors financial planning needs. We wish to
encourage the investment habit among investors by providing them life insurance cover. Insurance
cover to the investor would continue even after the SIPs minimum maturity tenor of 3 years. Any
individual between 18 to 46 years of age may invest in this plan. Investment in this plan may be
made through Electronic clearing system (ECS), direct debits or post dated cheques.Others: Some
other Ones with BSLI are:
1st to issue daily NAVs of funds for better transparency.
1st to have a distinct CRISIL benchmark.
1st to disclose portfolio on a monthly basis.
Policyholders can view their policy details online; they can be accessed from BSLI website using
your unique password. Out of every 100 claims intimated to BSLI 98.28 stands cleared. Also the
average Turn around Time (TAT): From the receipt of the last requirement till dispatch of cheque is5 days and From intimation of claim till its decision & dispatch of cheque is 36 days.
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ING VYSYA LIFE INSURANCE PROFILE
NG was founded in 1991 by a merger between Nationale-Nederlanden and NMB Postbank Group.
During the past years ING has become a multinational with diverse international activities.
The roots of ING can be traced to the insurers De Nationale Levensverzekering Bank and De
Nederlanden van 1845 and to the public bank services such as De Rijkspostspaarbank and De
Postcheque- and Girodienst, as well as to the Nederlandsche Middenstands Bank. These are the legal
predecessors of the 'founding fathers' of ING: Nationale-Nederlanden and NMB Postbank Group.
The oldest legal predecessor is the Kooger Doodenbos from Koog in the province of North Holland,
founded in 1743. During that period many regional funds were created to insure people from certain
communities, professions, widows and orphans against bad fortune. Many of these small
organisations were taken over by larger nationwide operating companies such as De Nationale
Levensverzekering Bank. The fire insurers were the first to undertake international activities, starting
in the Dutch Indies, but later also in the rest of Asia and in America. This created the foundation for
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the international company ING is today.
The pillarisation of Dutch society that separated Protestants, Catholics and Socialist/Liberals is also
visible in the ING history. Banks with a Catholic or Protestant signature merged into the NMB and
became part of ING. Professional groups also united in the banking business. Organisations such as
the Credietbank for Koffiehuis en Restauranthouders (pubs and restaturants), the Bank voor den
Diamantenhandel (diamond trade) and the Vakbondsspaarbank (Union Savings Bank) were involved
in several mergers and acquisitions and finally became part of ING Bank and therefore part of the
ING family.
The founding of ING as one company was started in 1990 when the legal restrictions on mergers
between insurers and banks were lifted in the Netherlands. This prompted insurance company
Nationale-Nederlanden and banking company NMB Postbank Groep to enter into negotiations. The
merger into Internationale Nederlanden Groep took place in 1991. The market soon abbreviated the
name to I-N-G. The company followed suit by changing the statutory name to ING Groep N.V.
Since 1991, ING has developed from a Dutch company with some international business to a
multinational with Dutch roots. This was achieved through a mixture of organic growth, such as the
creation of ING Direct from scratch, as well as various large acquisitions.
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The top of the company pedigree above shows the 'founding fathers' of ING; at the bottom you will
find the companies that ING has acquired since its establishment.In addition, companies were bought that have in the meantime been sold again. The first large
acquisition took place in 1995, when ING took over Barings Bank. This acquisition increased the
brand recognition of ING around the world and strengthened its wholesale banking presence in the
emerging markets. Some of Barings activities were integrated in ING's business units, while other
parts were closed down or sold. In 1999, ING acquired the German BHF-Bank, but this Frankfurt-
based merchant bank was divested in 2004. Cane bankers also played an important role in ING's
history. It had been part of NMB since 1966, but in 2004 ING decided to sell Cane. And then there
was Life of Georgia. This insurance company was acquired by Nationale-Nederlanden in 1979,
resulting in a considerable increase in activities in the US. Via Life of Georgia, the activities in Asia
expanded considerably. However in 2004, ING as a group had become well-established in both
regions and Life of Georgia was sold. In 1956 an ING predecessor (de Nationale) bought de Tiel-
Utrecht. This significantly increased the size of the company. But it was sold again in 1999 to De
Goudse.
Other acquisitions, such as the Belgian Bank Brussels Lambert, strengthened the Group's presence in
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There is high liquidity in the form of Partial Withdrawals and Surrender Benefits.
Death Benefits, which will be higher of the Fund value or Sum Assured, reduced by the
applicable partial withdrawals.
Working of BSLI Classic Life Plan:
1. You select the saving date that suits your retirement goals.
2. You select the basic premium you want to plan every year.
3. You will receive basic sum assured which is the minimum death benefit payable on the demise of
the life insured. The Basic Sum Assured is automatically determined as your basic premium
multiplied by:
The higher of 10 or the number of yrs to attain age 70 divided by 2, for entry age s below 45
or
The higher of 7 or the number of years to attain age 70 divided by 4, for entry ages 45 above
4. You select the number of years you want to pay your premiums, and select your pay term fromoptions of 5-pay, 10-pay, 15-pay, 20-pay to saving date.
5. You have the option to choose Enhanced Sum Assured to increase the financial security for your
life cover over and above the basic sum assured at a nominal cost.
6. You have the options to choose from our range of riders and customize the security of your
familys financial future.
BENEFITS
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1. Death benefit: - in case of unfortunate demise of the life insured while the policy is in effect,
the nominee will receive the greater of either the fund value or the basic sum assured,
reduced for partial withdrawals as follows.
Before the life insured attains the age of 60, the basic sum assured on demise isreduced by partial withdrawals made in preceding 2 yrs.
Once a life insured attains the age of 60, the basic sum assured payable on demise is
reduced by all partial withdrawals made from age 58 onwards.
In addition the nominee will also receive the enhanced sum assured, if any.
2. Enhanced sum assured: based on your needs you can increase the life cover and above the
basic sum assured by opting for the enhanced sum assured at inception. You can choose any
amount of enhanced sum assured, subject to a minimum of Rs 50000 and not exceeding basic
sum assured.
Whole life cover: you enjoy the life cover for your ensuring the long term financial security for your
loved ones.
1. Surrender Benefits: in case of emergency funds requirements, you can surrender your
policy after the completion of 5 policy years and receive the fund value at that time.
2. Top up premium: if you wish to increase your investment in the policy, you have the
freedom to invest additional amounts to your premiums as top up premium any time during
the policy term as long as all due policy premiums have been paid. The minimum top up
premium is rs 5000 and your basic sum assured will automatically increase.
3. Guaranteed Additions: your policy enjoys a boost in the form of additional units.
4. Partial withdrawals: you can make unlimited partial withdrawals to meet any financial
emergencies any time after 5 policy years. The minimum amount of partial withdrawals is rs.
5000. there is no maximum limit but you are required yo maintain a minimum fund value of
rs. 25000 + any top up premiums paid in the previous 5 years.
5.
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The Self-Managed Option gives you complete access to invest your premiums in our well established
suite of 10 Investment Funds, ranging from 100% debt to 100% equity. You also enjoy full freedom
to switch from one Investment Fund to another, as per your changing requirements.
Choose from our range of 10 Investment Funds, to suit your risk appetite
Allocate your savings in the proportion of your choice
Change your allocations as per your changing requirements
Plan Summary
Policy Term Whole life
Entry Age 18 to 45 years 18 to 50 years 18 to 55 years 18 to 60 years
Savings Date To age 55 To age 60 To age 65 To age 70
Basic Premium
Minimum Rs. 25,000 p.a. if paid annually
Minimum Rs. 30,000 p.a. if paid monthly, quarterly or semi-
annually
Pay Term Short pay 5, 10, 15, 20 years To Savings Date
Premium Payment Frequency Monthly, Quarterly, Semi-annually or Annually
Top-up Premium Minimum Rs. 5,000
Enhanced Sum AssuredMinimum Rs. 50,000, subject to maximum of 30 years to
Savings Date
2. BSLIS DREAM LIFE PLAN Unit Linked Insurance Plan
You work hard to provide your family the best of everything, along with saving for your retirement
years. You wish for a plan that lets you live your golden years with the same comfort and lifestyle,
without any compromises. Presenting the BSLI Dream Life Plan - a plan that suits your needs and
gives you the freedom to live life confidently.
This plan offers you:
Guaranteed Savings Amount on the date of your choice
Whole life cover
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Choice of Pay Term
Enhanced financial security for your loved ones
How BSLI Dream Life Plan works:1. You select the Guaranteed Savings Date that suits your retirement objectives.
2. You select the Basic Premium you want to pay every year.
3. You select the number of years you want to pay your premiums, and select your Pay Term from
options of 5-Pay / 10-Pay / 15-Pay / 20-Pay / To Guaranteed Savings Date.
4. You will receive Basic Sum Assured which is the minimum death benefit payable on the demise
of the life insured. The Basic Sum Assured is automatically determined as your Basic Premium
multiplied by:
> The higher of 10 or the number of years to attain age 70 divided by 2, for entry ages below 45; or
> The higher of 7 or the number of years to attain age 70 divided by 4, for entry ages 45 and above
5. You have the option to choose Enhanced Sum Assured to increase the financial security for your
loved ones. This increases your life cover over and above the Basic Sum Assured at a nominal cost.
-You have the option to choose from our range of riders to further customise the financial security
Policy Term Whole lifeEntry Age 18 to 45 years 18 to 50 years 18 to 55 years 18 to 60 years
Guaranteed Savings Date To age 55 To age 60 To age 65 To age 70
Basic Premium
Minimum Rs. 12,000 p.a. if paid annually
Minimum Rs. 15,000 p.a. if paid semi-annually
Minimum Rs. 20,000 p.a. if paid quarterly
Minimum Rs. 24,000 p.a. if paid monthly
Pay Term
Short Pay 5 years
Short Pay 10, 15 or 20 years
To Guaranteed Savings Date
From entry age 30
From entry age 18
From entry age 18
Premium Payment Frequency Monthly, Quarterly, Semi-annually or Annually
Enhanced Sum AssuredMinimum Rs. 50,000
Subject to a maximum of 30 years to Guaranteed Savings Date
3. BSLI DREAM CHILD PLAN
In this policy, investment risk in investment portfolio is borne by the policyholder.
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In life there are some dreams like giving your child the best possible education, planning fortheir
career or wedding or helping them start their life on an assured footing. And you wouldideally like
to guarantee this against any eventuality. Birla Sun Life Insurance brings its Dream Plans that can
meet these needs and give you the confidence to live your life with freedom.Presenting the BSLI
Dream Child Plan, a plan that gives you the guarantee of receiving your
Guaranteed Savings Amount on the Guaranteed Savings Date chosen by you. What's more, you
retain the freedom to keep pace with the ever changing world of your dreams for your child
Features of this plan are:
You choose the Guaranteed Savings Date that suits your savings objectives.
You choose the premium amount you want to pay every year prior to your Guaranteed
Savings Date.
You are then guaranteed -
- To receive no less than the Guaranteed Savings Amount on the Guaranteed Savings Date; and
- To enjoy a life cover of no less than the Basic Sum Assured throughout the policy term. You also
have the freedom -
- To increase the financial security for your loved ones by choosing an Enhanced Sum
Assured; and
- To increase the protection under this plan by choosing additional riders; and
- To meet any emergency fund requirements by making partial withdrawals or taking a policy loan
Finally, you enjoy tax benefits under section 80C and section 10(10D) of the Income Tax Act, 1961
Plan at a glance
Entry Age - Grand / Parent
-child
18 - 65 years, provided age on Guaranteed
Savings Date is 75 or less
30 days - 17 years
Guaranteed Savings Date Child's age 18 - 27, subject to minimum of
10 policy years
Basic Premium Minimum Rs. 12,000 p.a. if paid annually
Minimum Rs. 15,000 p.a. if paid semi-
annually
Minimum Rs. 20,000 p.a. if paid quarterly
Minimum Rs. 24,000 p.a. if paid monthly
Pay Term Years to Guaranteed Savings Date
Enhanced Sum Assured Minimum Rs. 50,000Not exceeding Basic Sum Assured
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1. Guaranteed Savings Date: - the policy anniversary on which the Guaranteed Savings Fund is
guaranteed to equal the Guaranteed Savings Amount and will then grow at 3% p.a. less policy
charges. Once vested, the Guaranteed Savings Fund is the minimum value of your Fund Value
payable on death or surrender guaranteed. Your options are the policy anniversary corresponding to
your child's attained age 18 to 27.
2. Basic Premium: - the premium amount you commit to pay every year during the pay term. Your
Basic Sum Assured and Guaranteed Savings Amount will be determined based on the premium
amount you commit
3. Pay Mode: - you can pay in monthly, quarterly, semi-annual or annual installments. For monthly
installments, two payments are required upfront at entry. Please ask your financial advisor for details
about the range of convenient payment methods we offer.
Your Benefits:-
1. Guaranteed Additions: - in the form of additional units will be added to your policy: On 10
policy anniversary and on every 5 policy anniversary thereafter. Guaranteed Addition is 2.50% of the
Basic Premiums paid in the last 60 months In addition on 11 policy anniversary and every policy
anniversary thereafter. Guaranteed Addition is 0.25% of the average Fund Value in the last 12
months
2. Death Benefit: - in the unfortunate event the primary life insured dies while the policy is in effect,
we will pay to the beneficiary the Basic Sum Assured. The policy will continue as long as the
secondary life insured is alive.
3. Prior to the Guaranteed Savings Date -
Upon death of the primary life insured (grand / parent), we will pay the Basic Sum Assured plus
Enhanced Sum Assured, if any and all future Basic Premiums in monthly installments starting from
the next policy month
Upon death of the secondary life insured (child),
Guaranteed Savings Date and pay the Fund Value as on that date Upon the last death of either the
primary or secondary life insured, we will terminate the policy and pay the Fund Value as on date of
intimation of death plus the commuted value
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Policy Discontinuance:-
Policy Discontinued for AP less than Rs. 25,000 For AP of Rs. 25,000 or more Service Tax and
other levies, as applicable, will be extra and levied as per the extant tax laws. Only when specified
and within stated limits, we may increase a particular charge at any time in the future. We, however,
need to get prior approval from the IRDA before such charge increase is effective. Otherwise, all
other charges in this policy are guaranteed to never increase during the tenure of the policy.
Throughout the Policy Term, you are given a grace period of 30-days (15-days in case your premium
is paid on a monthly basis) to pay the due premium. If we do not receive your full premium by the
end of the grace period, we shall send you a reminder notice within 15 days to revive the policy by
paying your due and unpaid premium or to choose to withdraw from the policy completely.
If you do not pay your due and unpaid premiums within 30 days as stipulated in our notice you shall
be deemed to have chosen the option to completely withdraw from the policy. Till this period, your
policy as well as all insurance cover and charges will continue.
During the first five policy years - should you completely withdraw from the policy, the insurance
cover will cease and your fund value net of any discontinuance charge will be transferred to the
Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest
rate of 3.5% p.a. on compounding basis and the proceeds from this will be payable to you on the date
corresponding to your fifth policy anniversary or the date the life insured dies, if sooner. The
discontinuance charge is as follows:
Policy Discontinued For AP less than Rs.
25,000
For AP of Rs. 25,000 or
more
In Policy Year 1 Lower of 20% of AP,
20% of FV, Rs. 3,000
Lower of 6% of AP, 6%
of FV, Rs. 6,000In Policy Year 2 Lower of 15% of AP,
15% of FV, Rs. 2,000
Lower of 4% of AP, 4%
of FV, Rs. 5,000
In Policy Year 3 Lower of 10% of AP,
10% of FV, Rs. 1,500
Lower of 3% of AP, 3%
of FV, Rs. 4,000
In Policy Year 4 Lower of 5% of AP, 5%
of FV, Rs. 1,000
Lower of 2% of AP, 2%
of FV, Rs. 2,000
In Policy Year 5 Nil Nil
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4 . ING AASHIRVAD CHILD PLAN
What is ING Aashirvad all about?
ING Aashirvad is a guaranteed child life insurance plan that pays out monies at critical milestones ofyour childs life like higher education, marriage, starting a business or any other goals that you
would have planned for your child. In this plan the parent and child are the life insured/s during the
policy term and once your childs future is adequately secured through the payouts, the benefit of
long term insurance protection shifts to the child during the extended policy term. A customized 2 in
1 plan, ING Aashirvad not only guarantees the planning for your childs career, marriage etc. but
also goes one step ahead and provides guaranteed long term Insurance protection foryour child.
What are your Guarantees with ING Aashirvad?
Guarantee 1:- Guaranteed Maturity Benefit as planned by you for your childs education, marriage
etc.
Guarantee 2:- Guaranteed Death Benefit on the life of the parent and the child.
Guarantee 3:- Guarantee of policy continuance in the unfortunate event of the demise of the parent.
Guarantee 4:- Guaranteed long term protection (30 years) for your child after the Guaranteed
Maturity Benefits are paid.
Key Benefits
Guaranteed Maturity Benefit (GMB)
The target amount that you want to save for your child is guaranteed on maturity and you can receive
the GMB either as part staggered and part lumpsum (Option A) or as a single lumpsum payout
(Option B). You can choose between one of these options and customize it to match with the criticalmilestones of your childs life.
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The GMB option that you opt at inception of the policy cannot be changed during the Policy Term.
Option A: - Part Staggered and Part Lumpsum:
Under this option the GMB is payable as mentioned in the table below.
When will you receive the payment? Payouts (as a % of GMB)
4 year before Policy Maturity Date 7.5%
3 year before Policy Maturity Date 7.5%
2 year before Policy Maturity Date 10%
1 year before Policy Maturity Date 10%
Policy Maturity Date 65%
Option B: - Single Lumpsum Payout:
Under this option the GMB is payable as a single lumpsum on the policy maturity date. There is also
a guaranteed addition of 5% of GMB payable on the maturity date subject to all due premiums being
paid.
Note: The Guaranteed Additions are payable on maturity only for Option B and the same is not
payable if policy acquires paid up value.
Guaranteed Death Benefit
Before the Policy Maturity Date
In the unfortunate event of death of the parent during the policy term
The death benefit (50% of the GMB) will be paid out. The GMB as planned for your child will
continue and all the future Premiums payable under this Policy from the next Policy Year onwards
shall be waived.
In the unfortunate event of death of the child during the policy term
The death benefit (2.50% of the GMB) and the Surrender Value (if applicable) will be paid
out and the policy will be terminated.
After the Policy Maturity Date (during the extended policy term of 30 years)
In the unfortunate event of death of the child during the extended policy term, the death benefit (50%
of the GMB) is paid out and the policy terminates.
Note: - There is no life insurance cover for the parent once all the trenches of GMB are paid out.
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8 - 9.99 3
10 11.99 3.5
12 13.99 4
14 15.99 4.5
16 17.99 5
18 & above 5.5
Modal Factor
You may choose to pay your premiums annually, half yearly, quarterly and by the monthly mode.
Following factors are applied to premium for different premium paying modes.
For e.g. Mr. XYZ wants to target for a GMB of Rs. 800000 for his childs education and marriage
after 20 years and his present age is 40 years and opts for Option A (part staggered and part
lumpsum payouts). The premium Payment Term would be Policy Term (20 years) 5years = 15
years.
Step 1:- How is his premium calculated?
The annual premium that he needs to pay for 15 years is calculated as follows:-
Monthly Premium rate per 1000 Guaranteed Maturity Benefit for his age of 40 years is Rs. 4.27.
Annual Premium rate per 1000 Guaranteed Maturity Benefit is calculated as follows:-
Annual Premium rate per 1000 guaranteed Maturity Benefit is calculated as follows:-
Annual premium rate = monthly premium rate * modal factor
=4.27 * 11.01
The premium rate per 1000 GMB for your age of 40 years is Rs. 46.99
Step 2:- What is the extra benefit for choosing a higher GMB?Since Mr. XYZ has opted for a
higher GMB (Rs. 8, 00,000) he is entitled to a high GMB discount of Rs. 3/-
The Premium for Rs. 800000 GMB is calculated as below:
Premium Rate per 1000 GMB = 9High GMB Discount -Premium Rate for Rs. 800000 GMB)/1000 *
GMB
= (46.99 3)/1000 X 800000
= Rs. 35,192/-
About Taxes
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This plan may entitle you to certain tax benefits on your premiums as well as on your guaranteed
maturity value.
U/s 80C of the Income Tax Act 1961 on your premiums
U/s 10(10D) of the Income Tax Act 1961 on your maturity proceeds of the policy
Please note that tax benefits are subject to changes in Tax Laws and we would urge you to consult
your tax advisor for specific tax related advice before you invest in this policy. Service tax and
education cess as applicable from time to time will be additionally levied.
What are the other provisions available?
Free look period
You have a period of 15 days from the date of receipt of the Policy document to review the terms
and conditions of this Policy. If you have any objections to any of the terms and conditions, you have
the option to return the Policy stating the reasons for the objections and you shall be entitled to a
refund of the premium paid subject to a deduction of a proportionate premium for the time on risk
that we have borne in addition to the expenses incurred on medical examination (if any) and the
stamp charges.
Grace Period
If premiums are not paid on its due date, a Grace period of 30 (thirty) days will be allowed for
payment of premium without interest. During the grace period the Policy shall continue to be in
force for all the Insured events.
If the premium is / are not paid within the grace period, the Policy will lapse and be subject to non-
forfeiture options (Reduced Paid Up or Guaranteed Surrender Value) if applicable.
1. Paid Up Value
If premiums for atleast 3 full years have been paid, and no further due premiums are paid, then the
Policy will be eligible for a non-forfeiture benefit which shall be a Paid-up Value. The amount of the
Paid-up Value for Death Benefit shall be determined by multiplying the Death Benefit (in case of
Primary Life Assured - 50% of the GMB and in case of Secondary Life Assured - 2.5% of the GMB)
with the ratio of the number of Regular Premiums paid to the total number of Regular Premiums
payable during the Premium Payment Term as shown below:
Number of premiums
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Paid Up Value for Death Benefit = Number of premiums paid/Number of premiums
payable * death benefits ( as applicable)
The Guaranteed Maturity Benefits (GMB) are also reduced and is payable on the Policy
Maturity Date.
The Paid Up Value for GMB is calculated as below:
Paid up value for GMB = number of premiums paid/ number of premiums payable *
GMB
2. Reinstatement
When the premium is not paid within the grace period, the Policy shall lapse and be subject to the
applicable non-forfeiture provisions contained in the Policy. The Policyholder may, however,
reinstate the Policy while the Person Insured is alive by:
Request in writing for reinstatement within five (5) years from the due date of the first unpaid
premium.
Provides satisfactory evidence of insurability to us.
Pays all due premiums to date of reinstatement with interest at the rate prescribed by the
Company at the time of reinstatement.
Fulfilling the entire reinstatement requirement as specified by the Company.
Guaranteed Surrender Value
If all due premiums have been paid for at least 3 full years, the policy would acquire a Guaranteed
Surrender Value. The Guaranteed Surrender Value will be equal to 30% of the total amount of
premiums paid excluding the premiums for the first policy year and premium for Extra Mortality
Rating, if any, less the staggered payouts already paid.
Cash Surrender Value
The policy may acquire a Cash Surrender Value if at least 3 full years premiums have been paid
which shall, at no point of time, be lesser than the Guaranteed Surrender Value. The Cash Surrender
Value will be quoted only on receipt of a surrender request which shall be determined by the
Company from time to time and is not guaranteed.
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Loan
There is a policy loan facility which can be availed under this policy after three full years premiums
have been paid. For details refer to the terms and conditions.
Exclusions
In the event of the Person Insured (Parent) commits suicide for any reason, while sane or insane,
within one year from the Date of risk commencement the Policy shall be treated as null and void, no
benefit shall be payable under the Policy and all the premiums paid on the Policy shall stand
forfeited to the Company.
If the person Insured (Parent) commits suicide within one year from the date of reinstatement the
surrender value (if any) would be payable.
Risk Factors:
ING Aashirvad is a Non-Linked, Non-Participating Life Insurance Product.
ING Vysya Life Insurance Company Limited is only the name of the Insurance Company and
ING Aashirvad is only the name of the product and does not in any way indicate the quality
of the product, its future prospects or returns.
This product guarantees all the policy benefits; maturity benefit, death benefit and guaranteed
surrender benefit. However the benefits are subject to all premiums being paid on time.
The purpose of this brochure is only to provide a general overview about this policy. The
information herein is indicative of the terms, conditions, warranties and exceptions contained
in the policy terms and conditions of ING Aashirvad. Please refer to the policy terms and
conditions / rider terms and conditions to understand in detail the associated risks, benefits
etc.
In the event of any inconsistency / ambiguity between the terms contained herein and the
policy terms and conditions, the policy terms and conditions shall prevail.
Section 41: Prohibition of Rebate
(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any
person to take out or renew or continue an insurance in respect of any kind of risk relating to
lives or property in India, any rebate of the whole or part of the commission payable or anyrebate of the premium shown on the policy, nor shall any person taking out or renewing or
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continuing a Policy accept any rebate, except such rebate as may be allowed in accordance
with the published prospectuses or the tables of the insurer.
(2) Any person making default in complying with the provision of this section shall be punishable
with fine which may extend to five hundred rupees.
Section 45- Non Disclosure
Under the provisions of section 45 of the Insurance Act, 1938, the company is entitled to repudiate
the policy on the ground that a statement made in the proposal or in any report of a medical officer or
referee or friend of the insured or any other document leading to the issue of the policy was
inaccurate or false, before the expiry of 2 years from the effective date of the policy, and thereafter
that if such false or inaccurate statement was related to a material matter or suppressed facts which it
was material to disclose and that it was fraudulently made by the policy-holder and that the policy-
holder knew at the time of making it that the statement was false or material to disclose.
5. BSLI PROTECTION SOLUTIONS BSLIS PROTECTOR PLAN
You are successful in your career and your family looks upon you for your support and strength. You
have till now given the best to your family. However when it comes to planning for unforeseen
circumstances, you need a powerful solution that meets different expectations and gives financial
protection to your family. To deal with the uncertainties of life and give your family the best, Birla
Sun Life Insurance has come up with the perfect protection solution for you. Introducing the BSLI
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anniversary, your sum assured will increase by 5% or 10% of the initial sum assured without any
increase in your premium amount.
You may choose to pay your premium yearly, half-yearly, quarterly or monthly, as per your
convenience. Your annual premium will be multiplied by:
o 1.000 for annual installments
o 0.519 for half-yearly installments
o 0.265 for quarterly installments; or 0.090 for monthly installments
For annual and half-yearly installments you can pay your premium by cash (up to Rs. 50,000),
cheque, credit card, and direct debit. For monthly and quarterly installments you can pay by salary
deduction or ECS only. BSLI Protector Plus Plan offers affordable and guaranteed protection for
everyone. It offers an automatic premium reduction for non-tobacco users.
Death Benefit
In case of the unfortunate demise of the life insured during the policy term, the sum assured
depending on choice of sum assured option at inception will be paid to the nominee. The policy shall
be terminated once the Death Benefit is paid.
Maturity Benefit
In the event the life insured survives to the end of the policy term, no benefit is payable on maturity
and the policy shall be terminated thereafter. This plan offers no policy loan, surrender value, or
paid-up value
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More Benefits
Current Tax Benefits - As per extant tax laws, this plan offers tax benefits under Section 80C,
80D and Section 10 (10D) of the Income Tax Act, 1961. Under Section 80C,premiums up to Rs. 1,00,000 are allowed as a deduction from you taxable
income each year
Under Section 80D premium paid for riders (Critical Illness, Surgical Care and Hospital Care)
upto Rs. 15,000 (Rs. 20,000 in case of senior citizens) is allowed as a deduction from your
taxable income each year
Under Section 10 (10D), the benefits you receive from this plan are exempt from tax, subject to
mentioned exclusions Service Tax and other levies, as applicable, will be extra and levied as per the extension tax law
10. ING CREATING LIFE CHILD PROTECTION PLAN
ING Creating Life Child Protection Plan is Traditional Participating Child Plan. In this plan, the
life of the parent is insured for the benefit of the child. In this plan, if the parent dies within the
policy matures, the Sum Assured is paid to take care of immediate expenses, the future premiums are
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However, the Maturity Benefit can be provided in 3 options: In a Lumpsum or in 3 or 5 installments
after the policy maturity date.
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1, 00,000 are allowed as a deduction
from the taxable income each year under section 80C.
Eligibility conditions in ING Creating Life Child Protection Plan
Minimum Maximum
Sum Assured (in Rs.) Not Specified
Policy Term (in years) 10 25
Premium Payment Term (in
years) Equal to PT
Entry Age of Parent (in
years)18 55
Age at Maturity of Parent (in
years)- 65
Regular Premium (in Rs.) 8,000 No Limit
Payment modes Yearly, Half-yearly, Quarterly or Monthly
Sample illustration of premium in ING Creating Life Child Protection Plan
Premium Paying Term = 20 years,
Sum Assured = Rs 5, 00,000
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Additional Features and Benefits of ING Creating Life Child Protection Plan
Riders There are 3 additional riders available in this policy
Accidental Death Benefit (ADB)
Accidental Death, Disability and Dismemberment Benefit (ADDD Benefit) rider
Term Benefit rider
There is 1 inbuilt rider available in this policy: Premium Waiver Benefit rider
What happens if?
You stop paying the premium - If the policy holder stops paying the premium, the insurance cover
will cease and the policy will lapse.
You want to surrender the policy If all due premiums have been paid for 3 policy years; the
policy would acquire a Guaranteed Surrender Value.
The Guaranteed Surrender Value = 30% of the Total Premiums paid 1 st Premium paid and extra
Premium paid
You want a loan against your policy There is a loan facility available in this plan which can be
availed under this policy after three full years premiums have been paid.
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RESEARCH DESIGN:-
Research is the process of systematic and in-depth study or research for any particular topic, subject
or area of investigation, backed by collection, compilation, presentation and interpretation of
relevant details or data. It is a careful search or inquiry into any subject or subject matter, which is an
endeavor to discover or find out valuable facts, which would be useful for further application or
utilization. Research may involved a scientific study or experimentation and result in discover or
invention, which would aid ethics scientific development or decision making. It may also established
relationship between variable and identified the ways and means for problem solving. In this project
Exploratory Research has been used:-
Exploratory or formulate research
Exploratory research is a primary study of subject matter or investigation of the phenomena. It
is not specific in nature but aims at understanding the broad contours of the subject. It is usually
preliminary or pilot study and is followed by descriptive, experimental research. It does not
have a formal and rigid design and as the research may have a formal and rigid design and as
the research may have to change his focus or direction, depending on the availability of new
ideas, new hypothesis, increasing the familiarity with the problem, assessing the feasibility of
further studies etc.
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SAMPLING AND SAMPLE DESIGN
Sampling may be defined as a selection of some part of an aggregate on the basis of which a
judgment about the aggregate is made. In other words it is the process of obtaining information about
an entire population by examining on the part of it. Sample should be truly representative of
population characteristics without any bias so that it may result in valid and reliable conclusion.
In the project the marketing and market research, which was ask to be studied was Chandigarh but as
it was not possible to approach all the respondent of the city, hence a sample was selected which
represents the whole city. The areas selected for the sample are present further in the appendix.
IMPORTANCE OF SAMPLING:-
1. Sampling safe time & money. A sample study is usually less expensive that census study.
Sampling enable more accurate measurement for a sample study is generally conducted by
trained and experienced investigators.
2. Sampling remains the only way when population contains infinitely many members.
3. Sampling remains the only choice when a test involves the destruction of the items under
study.
4. Sampling usually enables to estimate the sampling errors and, thus, assists in obtaining
information concerning some characteristics of the population.
SAMPLE DESIGN
A Sample design is a definite plan for obtaining a sample from the sampling frame. It refers to the
technique the researcher would adopt in selecting some sample unit from which inferences about the
population is drawn. Sampling is determined before any data are collected.
The sampling technique used in this project work is Convenience Random Sampling. It indicates
the number of individuals who would be surveyed. Here the sample size is 100
respondents.
Sample area: Ambala Cantt
DATA COLLECTION\
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SECONDARY DATA
Secondary data, is data collected by someone other than the user. Common sources of secondary
data for social science include censuses, organizational records and data collected through qualitative
methodologies orqualitative research. Primary data, by contrast, are collected by the investigator
conducting the research.
PRIMARY DATA
Primary research consists of the collection of original primary data. It is often undertaken after the
researcher has gained some insight into the issue by reviewing secondary research or by analyzing
previously collected primary data. It can be accomplished through various methods, includingquestionnaires and telephone interviews in market research, orexperiments and direct observations
in the physical sciences, amongst other
LIMITATIONS OF STUDY
Its very difficult to collect data from customers because no one was easily ready to givetheir view or details.
The sample was restricted to 100 customers, which may restrict the scope and completion of
study.
People dont have appropriate knowledge of more market based investment plans.
Method of data collection was through personal interview and therefore bias becomes a
major limitation.
Time for this survey is quite short so it is not possible to cover data from each and every unit
of the sample size.
In some plans there were very minor differences so its being difficult to make decisions that
which one is better.
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http://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Questionnaireshttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Experimentshttp://en.wikipedia.org/wiki/Observationshttp://en.wikipedia.org/wiki/Physical_scienceshttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Questionnaireshttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Experimentshttp://en.wikipedia.org/wiki/Observationshttp://en.wikipedia.org/wiki/Physical_sciences7/29/2019 Ajay Mehta
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CHAPTER 4
DATA ANALYSIS ANDINTERPRETATION
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1.According to you which is the best sector for making investments?
Table:4.1 Best sector for making investments
Banks 39%
Share market 12%
Insurance 31%
Real Estate 18%
Figure:4.1
Interpretation:-
Figure 4.1 illustrates that most of the respondants i.e.39% think that banking sector is the best sector
for investment. 31% like to invest in insurance sector. 12% are interested in share market and rest 18
% are interested in real estate investments.
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0%
5%
10%
15%
20%
25%
30%
35%
40%
Banks
Share market
Insurance
Real Estate
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\
2. Do you know how many companies are working in insurance sector in India?
Table:4.2 No. of companies working in insurance sector in India.
18 20%
22 53%
20 27%
Figure: 4.2
0%
10%
20%
30%
40%
50%
60%
Interpretation:-
Figure 4.2 illustrates that according to 20% peoples there are 18 companies indulge in
insurance sector. Major part i.e. 53% thinks that there are 22 companies working under
insurance sector anrd 27% think that 20 companies are performing in the sector of insurance.
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3. Are you aware about Birla Sun Life Insurance Company ltd and ING Vysya life insurance
company ltd?
Table:4.3 Awareness about Birla Sun Life Life Insurance Company ltd and ING Vysya life
insurance company ltd
Yes 68%
No 32%
Figure:4.3
0%
10%20%
30%
40%
50%
60%
70%
Yes
No
Interpretation:-
Figure 4.3 illustrates that 68% peoples are aware about these two companies where as 32%
people have not heard of these two companies.
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Figure 4.4 illustrates that 19% of persons are come to know about these by TV or media.
Where as 49% are come to known by friends or relatives and 13% through agents or advisors
.and rest 19% are known of these by others sources.
5. Do you have any insurance policy in BSLI Co. ltd & ING Vysya Life Insurance Co. ltd?
Table:4.5To know if they have have any insurance policy in BSLI Co. ltd & ING Vysya Life
Insurance Co. ltd
With BSLI 34%
With ING Vysya 12%
With both 8%
With others 46%
Figure:4.5
0%
10%
20%
30%
40%
50%
With BSLI
With ING VysyaWith both
With others
Interpretation:-
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Figure 4.6 illustrates that majority i.e. 87% peoples were thinking that BSLI is providing
better services. And other 13% peoples were thinking that ING Vysya life insurance is
providing better services.
7.What are factors that affect you the most regarding the selection of the plans of these two
companies?
Table:4.7 Which factors affect the most regarding the selection of the plans of these two
companies
Rate of return 33%
Affordable premium 31%
Low premium allocation charges 19%
surrender value 16%
All of the above 9%
Figure:4.7
0%
5%
10%
15%
20%
25%
30%35%
Rate of return
Affordable
premium
Low premium
allocation
charges
surrender value
All of the above
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9. According to you which of these two companies is providing better after sales Services?
Table:4.9 To know which of these two companies is providing better after sales Services
BSLI Co. ltd. 81%
ING Vysya Co. ltd. 19%
Figure:4.9
0%
20%
40%
60%
80%
100%
BSLI Co. ltd.
ING Vysya Co.
ltd.
Interpretation:-
Figure 4.9 illustrates that majority i.e. 81% persons liked BSLIs after sales services and rest
19% persons liked ING Vysyas sales services.
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Figure 4.10 illustrates that 34% peoples go to invest in BSLI and 11% prefers ING Vysya
life insurance and rest 55% are go for others.
12. What do you think which company among these two is providing more additional benefits, like
Riders, loans etc.?
Table;4.12 To know you think which company among these two is providing more additional
benefits, like Riders, loans etc.
BSLI 61%
ING Vysya Life Insurance 39%
Figure:4.12
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The study aimed to know the customers preference between plans of BSLI and ING Vysya life
insurance and their services. It was found that due to some evils of past, insurance sector has earned
badwill. But slowly- slowly people are developing wide vision for insurance. The project analysis of
Customers preference for products of BSLI and ING Vysya life insurance tells us that the risk
appetite of people is average. People have more faith in traditional plans than ULIPS. The main
reason behind that is the incomplete knowledge of market and plans. Very few customers know
about the guaranteed ULIP plans which assure the sum of money after a stipulated time.
But as 34% people are still interested in making investment in BSLI and 11% are interested in ING
Vysya life insurance so it may taken as a positive ray for both the companies and might be these
companies will succeed more and more in future.
BIBLIOGRAPHY
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ANNEXURE
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QUESTIONNAIRE
1.According to you which is the best sector for making investments?
(a) Bank(b) Share market
(c) Insurance
(d) Real Estate
2. Do you know how many companies are working in insurance sector in India?
(a) 20
(b) 18
(c) 22
3. Are you aware about Birla Sun Life Insurance Company ltd and ING Vysya life insurance
company ltd?
(a) Yes (b) No
4. If yes then how do you come to know about these two?
(a) TV or media
(b) Friends or relatives
(c) Advisors or agents
(d) Others
5. Do you have any insurance policy in BSLI Co. ltd & ING Vysya Life Insurance Co. ltd?
(a) With BSLI
(b) With ING Vysya life insurance
(c) With both
(d) With others
6. Do you think that BSLIs services are better as comparison of ING VYSYA Life Insurance?
(a) Yes (b) No
7. What are the factors that affect you the most in the selection of the plans of these companies?
(a) Rate of return
(b) Affordable premium
(c) Low premium allocation charges
(d) Surrender value
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