Birla Sun Life Insurance

A
PROJECT REPORT
ON
RECRUITMENT OF FINANCIAL ADVISOR AND
OPERATIONS MANGEMENT

TRAINING UNDERTAKEN
AT

BIRLA SUN LIFE INSURANCE
COMPANY LTD.





Submitted By:
BINOD KUMAR KAPOOR
FOR –MBA!E"e#uti$e P%&'%(me)
VINA*AK MISSION OPEN UNIVRSIT*
SALEM+ TAMIL NADU

Table of contents
Preface


Chapter-1
Introduction to the project
1. Basic theoritical concepts
2. Literature review
3. Need of the study
4. Objective of the sudy
5. esearch hypothesis adopted
6. !cope of the study

Chapter-"
"#1 Co$pany profile
"#" Indian insurance industry % life insurance
"#& ecruit$ent of financial advisor
Chapter-&
&#1 esearch desi'n and $ethodolo'y
Chapter-(
1. )ata presentation*analysis and interpretation
Chapter-+
+#1 !wot analysis
+#" eco$$endations
+#& Conclusion

BIBLIO,-P./
012!TIONN-I2






PREFACE

This report relates to the recruitment process in the birla sunlife insurance company ltd.. These days the
corporate sector is booming aggressively and there are many new entrants in the market in almost every
segment like telecom insurance technical telecom banks etc. and they are very much aggressive in
finding the best authenticated human resource from the market. !o for this purpose apart from doing
the recruitments on self basis these companies had made the provision of hiring people as financial
advisors who willl play a role of intermediary between company and customers. !o by recruitment
they can fulfill the need of the right person, at right place, at right time, which is the most important
thing for any company.









1. INTRODUCTION TO THE PROJECT

1.1 BASIC THEORETICAL CONCEPTS: -
Life insurn!e" # is a contract of life assurance is that in which one party agrees to pay a
given sum on the happening of a particular event contingent upon the duration of human
life in consideration of immediate payment of a smaller sum by another.
Life insurn!e in"us#r$" # a financial service industry dealing with various products and
plans of life insurance being provided by 22 life insurance companies in the $ndian market.
Finn!i% A"&is'r" # a person contracted with %ife $nsurance &ompany is authori'ed to sell
various life insurance products of the said company.
Re!rui#(en#" # the process of choosing best candidate among applied.
Pr'!e"ure 'f Re!rui#(en#" # step by step procedure of the recruitment of advisors.
Trinin) #' "&is'r" # $nducing the necessary skills and knowledge in selected candidates
as advisor regarding company and its products so as to sell them in the market confidently.
O*er#i'ns Mn)e(en#" # The management process dealing with the operations section
of the company.

1.+ LITERACTURE RE,IE- : -
%ife insurance is a service stream of finance industry which is concern with providing the
human value in the form of risk cover to be indemnified in the case of any uncertainty of
fatal cause to the life insured. There are various types of life insurance but they all have
some or more common attributes. The individual has to pay premiums to an insurance
company. The sector is growing and so is significant to analy'e and (udge the relative
financial stability growth prospects as well as soundness of various life insurance products
in the growing market where not only risk cover but also a good return value is provided at
the maturity of product plan thereby not considering merely as a risk covered plan but a
return based plan too.
Therefore recruitment of potential financial advisors is essential for the rising performance
of the business and company ob(ectives as a whole as only the advisors can sell the
products of life insurance. The industry is gaining importance rapidly so the title seems to
be worth it.
1.. NEED )* T+, !T-./
1. The title is being taken since $ am dealing in finance stream and it becomes
imperative for me to adopt a title concerning with finance industry such as life
insurance is. 0lso %ife insurance is an upcoming industry and growing since after
the privati'ation.
2. To understand the concept of financial advisors along with life insurance and their
recruitment in present scenario.
3. The challenges being faced by me in appointing and recruiting the potential
financial advisors have been summari'ed in the report itself.

1. The work in operations management where $ undertook calling to the people for
becoming financial advisors to (udge their viability for the company and how
feasible they will be in selling the plans in the e1isting market and to ease the
common man.
2. To analy'e how feasibly they are being offered in 2$3%0 !-4%$*, which claims
to be 4o.1 private company in %ife insurance market.

5
1./ OBJECTI,E OF THE STUDY
1. The prime ob(ective of the study of pro(ect work is to recruit and to gain the
conceptual knowledge of financial advisors to the life insurance who sells life
insurance products to the common man and how vital they are in the present
scenario.
2. !econdly to find out the effectiveness of financial advisors in dealing with life
insurance products to the common man financially.


1.0 RESEARCH HYPOTHESIS ADOPTED"
1. 6uestionnaire pertaining to the ob(ective of the study is being framed.
2. 7ould be put before the financial e1ecutives managers and employees in the
organi'ation and general public outside the organi'ation in order to frame out the
necessary conclusions.
3. .ata will be formulated for deriving valid interpretations and fulfilling the ob(ective
successfully.
4. !ampling techni8ue adopted will be !ystematic 9for internal organi'ation i.e.
financial sales marketing managers subordinates employees etc.: as well as
3andom !ampling 9e1ternal to the organi'ation i.e. general public: where the
respondents will be 8uestioned randomly.

1.1 SCOPE OF THE STUDY
1. %ife insurance is uni8ue among financial instruments. $t is not only a financial
instrument that is based on caring and love but there can be personal advantages to
having life insurance. $t is the real impetus having love for those who cares most
about ; to make sure they are taken care of. !o one can feel pleasure in taking the
time to learn about this sub(ect whether through the company or the organi'ation of
anyone<s choice.
2. $n fact if one knows that he is having sufficient life insurance he won<t feel that he
is lowering the inheritance by spending some of his principal. -nder the scheme of
insurance one individual actually =pays down principal5 to some degree especially
if he has lifetime permanent than the life insurance becomes as a backup. Thereby it
makes necessary to obtain the financial viability and feasibility for these life
insurance products.

CHAPTER 2 II
+.1 PROFILE OF THE OR3ANISATION
+.+ INDIAN INSURANCE INDUSTRY 4 LIFE INSURANCE
+.. RECRUITMENT OF FINANCIAL AD,ISORS 4 PROCEDURE


+.1 PROFILE OF THE OR3ANISATION
BIRLA SUNLIFE INSURANCE" #
,stablished in 2>>> 2irla !un %ife $nsurance &ompany %imited 92!%$: is a (oint venture
between the 0ditya 2irla ?roup a well known and trusted name globally amongst $ndian
conglomerates and !un %ife *inancial $nc leading international financial services
organi'ation from &anada. The local knowledge of the 0ditya 2irla ?roup combined with
the domain e1pertise of !un %ife *inancial $nc. offers a formidable protection for its
customers< future.
7ith an e1perience of over @ years 2!%$ has contributed significantly to the growth and
development of the life insurance industry in $ndia and currently ranks amongst the top 5
private life insurance companies in the country.
Anown for its innovation and creating industry benchmarks 2!%$ has several firsts to its
credit. $t was the first $ndian $nsurance &ompany to introduce =*ree %ook Beriod5 and the
same was made mandatory by $3.0 for all other life insurance companies. 0dditionally
2!%$ pioneered the launch of -nit %inked %ife $nsurance plans amongst the private players
in $ndia. To establish credibility and further transparency 2!%$ also en(oys the prestige to
be the originator of practice to disclose portfolio on monthly basis. These category
development initiatives have helped 2!%$ be closer to its policy holders< e1pectations
which gets further accentuated by the complete bou8uet of insurance products 9vi'. pure
term plan life stage products health plan and retirement plan: that the company offers.
0dd to this the e1tensive reach through its network of 6>> branches and 1C5>>>
empanelled advisors. This impressive combination of domain e1pertise product range
reach and ears on ground helped 2!%$ cover more than 2 million lives since it commenced
operations and establish a customer base spread across more than 15>> towns and cities in
$ndia. To ensure that our customers have an impeccable e1perience 2!%$ has ensured that
it has lowest outstanding claims ratio of >.>>D for */ 2>>E#>@.

0dditionally 2!%$ has the best Turn 0round Time according to %)F0 on all claims
Barameters. !uch services are well supported by sound financials that the &ompany has.
The 0-F of 2!%$ stood at Rs. 5110 !rs s 'n Fe6rur$ +57 +8897 while as on Farch 31
2>>@ the company has a robust capital base of Rs. +888 !rs.
,isi'n
To be a leader and role model in a broad based and integrated financial services business.
Missi'n
1. To help people mitigate risks of life accident health and money at all stages and
under all circumstances
2. ,nhance the financial future of our customers including enterprises

,%ues
 $ntegrity
 &ommitment
 Bassion
 !eamlessness
 !peed
0 -! G2E billion corporation the 0ditya 2irla ?roup is in the league of *ortune 5>>
worldwide. $t is anchored by an e1traordinary force of 1>>>>> employees belonging to 25
different nationalities. The group operates in 25 countries across si1 continents ; truly
$ndiaHs first multinational corporation.

0ditya 2irla ?roup through A"i#$ Bir% Finn!i% Ser&i!es 3r'u* :ABFS3;7 has a
strong presence across various financial services verticals that include life insurance fund
management distribution I wealth management security based lending insurance
broking private e8uity and retail broking. The seven companies representing 02*!? are
2irla !un %ife $nsurance &ompany 2irla !un %ife 0sset Fanagement &ompany 2irla !un
%ife .istribution &ompany 2irla ?lobal *inance &ompany 2irla $nsurance 0dvisory I
2roking !ervices 0ditya 2irla &apital 0dvisors and 0pollo !indhoori &apital $nvestment.
$n */ 2>>E#>@ the consolidated revenues of 02*!? from these businesses crossed 3s.
4C63 crores registering a growth rate of 36D.
SUNLIFE: -
!un %ife *inancial is a leading international financial services organisation providing a
diverse range of protection and wealth accumulation products and services to individuals
and corporate customers. &hartered in 1E65 !un %ife *inancial and its partners today have
operations in key markets worldwide including &anada the -nited !tates the -nited
Aingdom $reland +ong Aong the Bhilippines Japan $ndonesia $ndia &hina and
2ermuda. 0s of .ecember 31 2>>E the !un %ife *inancial group of companies had total
assets under management of G3E1 billion.
ABOUT PARENT COMPANY:
THE ADITYA BIRLA 3ROUP
The group is $ndiaHs leading business house
 0mongst the largest and most reputed industrial houses in $ndia
 .omestic market leaders in most of our product areas
 )perations across 1E countries
 0nchored by E2>>> strong workforce employed in @> locations globally belonging
to over 2> different nationalities
 Trusted by E>>>>> shareholders
 0ggregate revenue #-! G E.3 billion
 Farket &apitalisation;-! G 12.5 billion
 OR3ANISATIONAL BOARD
Mn)e(en# Te(
Fr. 0(ay !rinivasan #Fanaging .irector
Fr. Fayank 2athwal # &hief *inancial )fficer
Fr. 0mitabh Kerma # &hief )perating )fficer
Fr. *abien Jeudy # &hief 0ctuarial )fficer I 0ppointed 0ctuary
Fr. Kikram Aotak # &hief $nvestment )fficer
Fr. &hander &hellani # &hief .istribution )fficer
Fr. 3ahul !inha # &hief Farketing )fficer
Fs. Kinni !oni # +ead ?roup 2usiness
Fs. 0n(ana ?rewal # !enior Kice Bresident +ealth 2usiness
Fr. !aurov ?hosh # Kice Bresident +uman 3esources
Fr. %alit Kermani # Kice Bresident 3isk and $nternal 0udit functions
Fr. 2halachandra 4ayak # Kice Bresident !trategy I Bro(ects
Fr. Buneet 2ansal # %egal I &ompany !ecretary
B'r" 'f Dire!#'rs
Fr. Aumar Fangalam 2irla # &hairman The 0ditya 2irla ?roup
Fr. 0(ay !rinivasan # &hief ,1ecutive ; *inancial !ervices 0ditya 2irla ?roup
Fr. 2ishwanath Buranmalka # .irector ; *inancial !ervices 0ditya 2irla ?roup
Fr. .onald !tewart # &hief ,1ecutive )fficer !un %ife *inancial
Fr. Kenkatesh Fysore # &ountry +ead ; $ndia !un %ife *inancial 0sia
Fr. ?ian ?upta
Fr. !tephan 3a(otte # Bresident ;!un %ife *inancial 0sia
Fr. !uresh Talwar
Business C'n#inui#$ P%n
2irla !un %ife $nsurance is one of the few $ndian companies to have a fully operational
2usiness &ontinuity Blan 92&B: to ensure minimal impact to the organisation its people
and most importantly its customers. )ur 2usiness &ontinuity Blanning 92&B: Brogram is a
response plan which would ensure that in the event of a disaster we would be able to restore
and recover operations for critical processes within a predetermined time after the disaster.
7hy 2usiness &ontinuity BlanL
0 2usiness &ontinuity Blan ensures continued operation at agreed level in the event of"
4atural disasters such as floods earth8uake etc.
+ostile situations
)perational breakdowns
,mployee malevolence
.amage to critical information technology and telecommunication systems etc.
$t is important to counter these threats as it may result in loss of critical data damage to
assets cause human in(uries and loss of life.
0t 2irla !un %ife $nsurance our 2usiness &ontinuity Blan has been designed based on
international best practices and global industry standards. $t is an integral part of our 3isk
Fanagement activities that will ensure effective recovery of our critical business processes
within an acceptable time frame in case of disruption to our business due to any disasters.
Brogramme )verview
0s part of our 2usiness &ontinuity Blan we have a documented crisis response and
recovery procedure for 8uick response and stabilisation of the situation and a business
continuity procedure to ensure recovery.

+ighlights of our Blan .ocument"
&risis Fanagement I incident response
.ata back#up data and system recovery
3ecovery of all mission#critical business functions and supporting systems
0lternate recovery sites if primary location is unavailable
&ommunication with customers employees and other stakeholders
0ssurance to customers that they will continue to receive optimum customer services at all
times

Our C'((i#(en#
3isk 0ssessment I 2usiness $mpact 0nalysis 92$0: annually.
2usiness &ontinuity Blan for +) I its &ritical branches.
&risis Fanagement Blan I Bandemic 3esponse Blan at a corporate %evel.
2usiness &ontinuity Blan Testing ensuring viability of all its plans.
The activities set forth above may evolve as business and regulatory needs re8uire.

PRODUCTS 4 SER,ICES:
In"i&i"u% S'%u#i'ns
0t 2irla !un %ife $nsurance we look at life from your perspective. +ence no matter what
your dreams are # be it long term protection wealth creation health retirement security or
your children<s education we provide you customised insurance solutions to meet all your
%ife needs successfully.
1. )ur Brotection !olutions for your familyHs life insurance needs.
Brotection !olutions
0s the primary breadwinner of the family you are responsible for shouldering the grand
dreams you have envisioned for your family. $n the eventuality that your family is forced to
adapt to a world without you they should be free of any additional burden of financial
worries at the time.
%ife insurance assumes your responsibilities of providing for your family as planned even
in your absence. /our family<s financial security should be assured under all
circumstances.
0ll you need to do to secure your family<s future is"
7ork out the amount of life cover you need considering your income your family<s living
e1penses and your financial commitments towards your family. ,stimate the time period
over which your family would be financially dependent on you
Term plans are suitable if you"
7ish to separate your insurance and investment needs
+ave the discipline and knowledge to tailor your own independent investment plan
+ave good clarity on the time hori'on of your financial responsibilities
!eek an insurance plan without large premium commitments
+ave a specific time#bound liability to cover
.o not intend to use insurance as a tool of wealth transfer to your ne1t generation
Term plans are designed to fulfil the most basic and fundamental function of life insurance
which is the provision of life cover. 0 no#frills product that does not have any saving
element or survival benefits a typical term plan offers the benefits of getting a high life
cover at a low cost. /ou also have the option of premature termination of the cover if you
feel that you have achieved your financial goals and do not re8uire the cover anymore.
7e have three different plans under this category" >#
 2!%$ Term Blan
 2!%$ Bremium 2ack Term Blan
 2!%$ +igh 4et 7orth Term Blan

1. )ur &hildren<s *uture !olutions To take care of your childrenHs need.
&hildren<s *uture !olutions
0s parents we aspire to give the best that life has to offer to our children. 7hile children
enrich our lives it is no secret that they also need funding for their considerable e1penses.
!ince most of us have relatively fi1ed sources of income financial planning for a child<s
benefit becomes an essential part of the entire family<s budget.
=,ducation is the best provision for old age.5 ; 0ristotle
0ristotle<s ma1im still holds true. -nfortunately the cost of education has risen far beyond
the ?reek philosopher<s wildest imagination. ,very child deserves the best opportunities
and options. !o whether it is a foreign degree or a specialised training course most parents
would not like to deny their children any opportunity due to the lack of funds. Farriage is
another e1pense that can (ust creep up on you and in $ndia marriages are 8uite e1pensive.
$t is therefore prudent that you carefully plan your finances for your child<s benefit. /ou
should ensure that you have the re8uired funds ready when they are needed but at the same
time your plan should also build in risk management so even if you were not around you
would have insured your child<s happy future. 0s a careful investor your investment plan
for your child should consider the following few pointers"
0s a careful investor your investment plan for your child should consider the following few
pointers"
!aving regularly
!ecure investment
$nsurance cover
*le1ibility
?uaranteed return
0bove all keep in mind that it is never too early to plan for your childHs future. The earlier
you begin the more you can gather for your child<s needs.
&hildren<s *uture Blan offers you market linked returns with insurance cover. These are
designed in a way that enables you to take care of your child<s future financial needs. 0
carefully planned investment today can ensure that you don<t have to worry about funding
concerns in case of re8uirements.
Broducts name" # 2!%$ &hildrenHs .ream Blan

1. )ur 7ealth I Brotection !olutions To help you create long term wealth I protect
your family.
-e%#< 4 Pr'#e!#i'n S'%u#i'ns
S&in) P%ns
!aving is all but instinctive for the most of us and the important role that time plays when
it comes to saving for your future is also lost on most people. $f you do not start early
chances are that you may miss the savings train.
Insurn!e s s&in)s
%ife has its own set of risks and while insurance has often been viewed strictly as a risk
mitigation tool it can also be a big help in saving for your future.
&onsider these few pointers while saving for your future"
!tart early
!ave regularly
$nvest in a plan that offers you fle1ibility
Try to make your investments ta1 efficient
2y choosing a right plan you can make your funds work harder for you and provide returns
higher than (ust the bare minimum. 7hether covering life<s challenges or covering the risks
that come with it these insurance policies that have a saving component that will give you
the carefree e1istence you deserve. The policy will cover your life risk for your loved ones
while its savings component will ensure that you always have a healthy corpus awaiting
you when you reach the end of your saving plan for your nest egg.
Broducts name are" #
 2!%$ Foney 2ack Blus Blan
 2!%$ Blatinum Blus
 2!%$ ?old#Blus $$
 2!%$ !aral Jeevan Blan
 2!%$ !upreme#%ife
 2!%$ .ream Blan
 2!%$ &lassic%ife Bremier
 2!%$ !imply%ife
 2!%$ Brime%ife Bremier
 2!%$ Brime%ife
 2!%$ ?uaranteed 2achat Blan
 2!%$ *le1i &ash *low
 2!%$ *le1i !ave Blus
 2!%$ *le1i %ife %ine
 2!%$ !ingle Bremium 2ond

1. Our He%#< 4 -e%%ness S'%u#i'ns To cover you I your familyHs current I future
health need.
+ealth I 7ellness !olutions
0 sudden medical emergency has the potential to derail even a well made financial plan
and throw your finances into complete disarray. %ack of instant access to funds could at
times force you to compromise on the 8uality of medical treatment which would be an
unfortunate but easily avoidable situation.

+ealth costs are rising at alarming rates and consuming a larger share of your monthly
e1penses than ever before. $t is then only wise to have a plan to ensure that you and your
family are never left in the want of funds when a contingency arises.
Things to remember while buying a health insurance policy
$nsure yourself and your family for an ade8uate amount
Fake sure you are insured against ma(or illnesses and in(uries.
?o for those policies that offer you cash less facility
+ealth is one of the fundamental determinants of your family<s happiness and shouldn<t
you strive to give them the bestL
2!%$ +ealth Blan
2!%$ -niversal +ealth Blan

1. Our Re#ire(en# S'%u#i'ns To financially secure a happy retired life.
Re#ire(en# S'%u#i'ns
7ith the change in social structure it is uncommon for people to live together in (oint
families. The growing trend is for retired people to live by themselves. %iving
independently in your retirement can mean incurring monthly e1penses but without no
monthly income from a (ob.
!o whether you have planned a hectic retirement where you will start the business venture
of your dreams or a leisurely retirement (ust tending to your backyard gardenM you do need
the resources to ensure that your golden years are the best part of your life.

The cost of retirement can be considerable a cost that you need to start planning as early as
possible. ,ach year the cost of living increases and as you get older this cost will only get
higher. /ou need to account for the price rise so that your savings can support you in your
retirement.
$n $ndia it is routine for most people to fund their own retirement. Blanning for life after
work is not so difficult once you follow a few simple steps"
.etermine an amount that is re8uired
.etermine how much additional is needed
0llocate investments
7ait review and reallocate
3etirement planning is all about knowing what you want and being disciplined towards
achieving it. These days with life e1pectancy being higher life<s goals being wider you
need to ensure that you have enough in your account to take care of you in those days of
leisure.
-nit linked retirement plans offer you fle1ibility to choose the investment tenure
investment portfolio 9fund options: and the amount that you pay regularly. /ou should
choose your investment portfolio depending on your risk appetite and years remaining in
your retirement. $deally as you get nearer to the day when you would 8uit working you
should reduce your e1posure to risky investments for e1ample e8uity and e8uity associated
funds. &hoosing the right retirement fund ensures that you can remain worry free when the
time comes to en(oy your golden period.

3r'u* S'%u#i'ns
7e believe that employee benefit plans provided by employers to their employees play a
very important role in increasing employee loyalty and productivity. 2irla !un %ife uses its
vast e1pertise in helping organi'ations and groups design customi'ed solutions to their
employees.
Re#ire(en# S'%u#i'ns
)ur employee benefit solutions are designed to enable organi'ations and groups to offer
superior benefits to their employees to meet both statutory re8uirements like gratuity and
retirement solutions.
3r#ui#$
7hile ?ratuity is a statutory obligation it is also a very important tool today to create
employee loyalty. 0 comprehensive gratuity plan can help organi'ations reduce both
business costs and corporate ta1. 2irla !un %ife<s gratuity solution manages your gratuity
liability effectively and also helps you release resources for other business activities.
Su*erAnnu#i'n
Today while there is a high awareness of the impact of inflation and its affect on retirement
savings among employees very few would have adopted a systematic and disciplined
savings plan to counter its effect. )rgani'ations can play a key role in helping employees to
build the desired retirement corpus while at the same time increasing employee loyalty.
2irla !un %ife<s solutions can be customi'ed to effectively meet both employer and
employee re8uirements.
Le&e En!s<(en#
%eave encashment liabilities for organi'ation keep growing with time thus straing the
organi'ations resources. These liabilities can bee effectively met through the management
of a dedicated fund for leave encashment. 2irla !un %ife vast e1perience in effectively
managing funds and delivering superior returns can help organi'ations effectively manage
these liabilities


Pr'#e!#i'n S'%u#i'ns
2irla !un %ife $nsurance ?roup Brotection !olutions provide the benefit of an insurance
cover to an entire group of people as a single unit. This can be ,mployer ; ,mployee
?roups 0ffinity ?roups and Fortgage ?roups
E(*%'$er e(*%'$ee
0t 2irla !un %ife $nsurance 92!%$: our goal is to help you ensure your employees< well
being so that they can enhance their performance I potential. )ur protection solutions
combine new innovations in organi'ational benefits with the traditional strength of
employee assistance to help you" Brotect your investment in your people 3educe the
liability cost and negative impact of mental ressures in the work place Faintain your
position as employer of choiceM and $ncorporate employer protection I wellness into your
core business practices
Affini#$
0n affinity group is a group consisting of persons who assemble together with a
commonality of purpose or engaging in a common economic activity. n $nsurance parlance
4on#employer#employee groups like employee welfare associations borrowers of a bank
professional associations or societies may also be treated as affinity groups provided the
presidentN secretaryN managerN group organi'er in his capacity as organi'er of the group has
an authority from ma(ority of the members of the group to arrange insurance on their
behalf.


Rur% S'%u#i'ns
0 large population of $ndia lives in the rural areas with. The impact of risks associated with life and
health are far more severe on this population as compared to the urban population with higher levels of
income.
2irla !un %ife launched its rural program in 2>>1 to provide insurance to the rural populace of $ndia.
This includes the endowment product that provides life cover and guarantees returns to the insured on
maturity. 2y virtue of the benefits it provides this product has been very well accepted and has gone on
to become the most popular product in the rural areas.
7ith changing times and with increasing disposable incomes in rural areas we improved our
solutions to the rural population and launched two Ficro $nsurance Broducts in 2>>E which include a
pure term and return of premium products. )ne of the uni8ue features of these products is that they
provide a grace period of 1E> days as opposed to 3> days for other similar plans in the market. This
gives policyholders the fle1ibility to pay premiums.
2irla !un %ife $nsurance 2ima .han !anchay
2irla !un %ife $nsurance 2ima .han !anchay apart from providing the security of life insurance
cover also guarantees the refund of premiums paid by you on maturity.
2irla !un %ife $nsurance 2ima !uraksha !uper
2irla !un %ife $nsurance 2ima !uraksha !uper provides you life insurance cover for which you have
to pay regular premium
2irla !un %ife $nsurance 2ima Aavach /o(ana
$t is more than an insurance product it is a chance to protect the lives we seek to improve

NRI S'%u#i'ns
$n todayHs globali'ed work environment we often find ourselves staying away from our
loved ones in a different country. +owever our hopes dreams and aspirations to provide
them the best of life do not change. 2irla !un %ifeHs uni8ue 43$ solutions can help you
ensure that your dreams and aspirations are not compromised even while you stay away
from your family. )ur solutions can help you plan and fulfil all your goals like planning for
your childHs education planning for your retirement building a house caring for your
parents back home and more.


+.+.1 INDIAN INSURANCE INDUSTRY
The insurance sector is one of the most promising sectors in $ndia. The market si'e went up
to -!G 4C.E@ billion in 2>>C from -!G 21.C1 billion in 2>>> increasing at the rate of 12>
per cent. 2etween 2>>> and 2>>C overall premiums sustained an average growth rate of
11.@6 per cent. This was one of the most steady growth patterns witnessed amongst
emerging economies in 0sian as well as global markets. $ncreasing from (ust one company
a decade ago there are 22 life insurers in the country presently. $n fact according to
$nsurance 3egulatory I .evelopment 0uthority 9$3.0: the number of registered general
insurers has gone up to 21. 0s a ma(or portion of the business comes from urban markets
the ne1t step for these firms would be to tap semi#urban and rural markets.
*urther the countryHs insurance sector is likely to grow 1C per cent in the current financial
year if the economy continues to e1pand at the pace as it did in the !eptember 8uarter of
2>>E. $ndia<s economy grew at C.6 per cent in the July#!eptember period.O$f ?.B grows
C.6 per cent premiums would grow 1C per cent according to Fr J +ari 4arayan $3.0
&hairman. %ife insurers which constitute the bulk of the $ndian insurance market grew
their business by 23.3 per cent to -!G 1E.@4 billion in 2>>C#>E while general insurers
posted growth of about 14 per cent in premium income to -!G 6.>C billion according to
$3.0 data.
+igher per capita income domestic savings and availability of more instruments for
parking surplus funds have facilitated growth in the activities of financial services. 7ith the
largest number of life insurance policies in force in the world the penetration of insurance
in $ndia as a percentage of gross domestic product 9?.B: stood at 4.E per cent as on
*ebruary 2>>E against 1.2 per cent in 1@@@;2>>>. )f this life insurance accounted for 4.1
per cent and non#life insurance for >.6 per cent. 0lso as per industry estimates out of CE
per cent $ndian households that are aware about life insurance only 24 per cent own a
policy.
0 combined $&$&$ Brudential %ife $nsurance and $F32 survey conducted in three metros
P.elhi Fumbai and &hennaiPtakes into account households having average monthly
income of -!G E16.51 per month. !uch households on an average have two policies.
*urther C@ per cent people prefer life insurance over other ta1 saving instruments like post
office savings ,8uity#%inked !aving !chemes and fi1ed deposits.
$n the month of 4ovember 2>>E 16 general insurance companies both public and private
together collected -!G 452.E3 million against -!G 452.5C million in the same month last
year. 12 private sector players clocked a marginal growth of 1.2 per cent in the premium
collection according to $3.0 data. +owever 0pril#4ovember premium collection stood at
-!G 4.23 billion compared to -!G 3.CC billion up by @.5C per cent.
.uring the first eight months of the current fiscal premium collection by private players
recorded a growth of 15 per cent at -!G 1.C3 billion. Brivate players witnessed 31 per cent
growth in first premium income 9*B$: and 2C per cent growth in sales of number of policies
94oB:.
The insurance giant %$& has already mopped up over -!G 4>C.6E million ending
.ecember 2>>E and it is e1pecting to garner around -!G 5>.@ billion from its newly
launched product Jeevan 0stha depicting a trend where people are putting money in safe
and long#term investments along with the added life cover. !tate#owned %ife $nsurance
&orporation of $ndia the country<s largest life insurer is also leading the way in e1pansion
plans. The corporation is planning to recruit 1>>>> employees and around 25>>>>
insurance agents across the country this year.
3r'=#< 'f *ri&#e insurn!e !'(*nies
!2$ %ife $nsurance is planning to raise the number of branches to 25> branches this
financial year. *urther $&$&$ Brudential %ife $nsurance has stated that in the last two years
the company had e1panded the distribution network by increasing the number of branches
to over 2>@> from 1CC.

0egon 3eligare %ife $nsurance in its first year of operations is actively scaling up to open
51 branches of which 4E are already operational across 3@ cities. Fa1 4ew /ork %ife
$nsurance is planning to increase the number of branches to at least 25> every year going
forward.
This will e1pand Fa1 4ew /ork %ife<s distribution network from 311 offices in June#end
2>>E to almost @>> agency offices and C>> rural offices by */ 2>12. 0 report # H$nsurance
!ector *uturistic ?rowthHPreleased in 0ugust 2>>E by 0!!)&+0F revealed that
bolstered by intense marketing strategies private insurance players have rapidly increased
their market share. The share of state#owned insurance companies like ?eneral $nsurance
&orporation 9?$&: %ife $nsurance &orporation 9%$&: and others is about C> per cent
currently.
$t is estimated that its growth rate could even e1ceed 14> per cent. !tate#owned insurance
companies are now coming out with variations and new policies now that $3.0 has given
approval for launch of new products. Brivate insurance companies however have a larger
number of policies on offer with more competitive premium amounts and maturity periods.
The private sector insurance players have now also made inroads into the rural markets
which till recently were dominated by the state#owned companies.
Brivate insurance companies with innovated customised policies for different sections such
as offering life cover along with investment opportunities with a long#term perspective or a
women#oriented policy targeting the increase in the number of working women has led to a
demand for life insurance policies which in turn has helped women through a micro#
entrepreneurship initiative offering them morefle1ibility.
&hildrenHs products such as $&$&$ Brudential %ifeHs H!martAidH 2irla !un %ifeHs H&hildrenHs
.ream BlanH or +.*& !tandard H%ifeHs /oung !tar BlusH are on a consistent growth path.


0ccording to industry estimates currently 2>;3> per cent of business of many companies
comes from children#specific insurance policies alone. 0 Bricewaterhouse &oopers report
H+ealthcare in $ndia" ,merging market report 2>>CH stated that valued currently at -!G 34
billion the $ndian healthcare sector is likely to grow to around -!G 4> billion by 2>12. The
health insurance sector which is offered by both life and general insurers is growing
currently at 5> per cent and is being promoted by the $3.0. +ealth insurance is e1pected
to grow to -!G 5.C5 billion by 2>1> according to a study by the 4ew .elhi#based B+.
&hamber of &ommerce and $ndustry.
)nly a miniscule 1> per cent of the $ndian population has some kind of health insurance
therefore there is a huge potential market for health insurance. 0 (oint report by FcAinsey
and &$$ has estimated the number of potential insurable lives at around 315 million. $n
2>>6;>C the rapidly burgeoning $ndian health insurance business grew 4> per cent to touch
-!G E12 million. $n some states the government is partnering with the private sector to
offer coverage at low costs. %ife $nsurance &orporation 9%$&: has now entered the health
insurance market and has mobilised premium income of -!G 21.23 million in the last two
months of 2>>C;>E.
2irla !un %ife on January C 2>>E also announced its plans to enter into the -!G 4>.C5
billion health insurance business with the launch of two plans nationally. $&$&$ Brudential
%ife on January 5 2>>E launched +ealth !aver to help consumers meet their current
healthcare e1penses and also invest for future healthcare e1penses.
The current focus on health insurance business will also further boost the third party
administrator 9TB0: business. 0 third party administrator in an entity that processes
insurance claims for the general insurers that issuing health and medical insurance covers.
TB0s offer the much needed in#between services to the customers and insurance companies
by managing the claims. 2y 2>12 the $ndian TB0 industry is likely to grow to -!G 3.1E
billion in si'e.

7ith appro1imately 3> players the present si'e of the TB0 sector is around -!G @34
million and is growing at 4> per cent. *urther $3.0 has constituted a committee in
January 2>>@ to evaluate the performance of the third#party administrators 9TB0s: in health
services.
Bn!ssurn!e se)(en#
The bancassurance segment has been growing consistently pace and is competing with the
traditional sale of insurance by agents owing to the keenness of banks to augment other
income 9fee#based income:. ?lobal insurance consulting firm 7atson 7yatt 7orldwide in
H$ndia 2ancassurance 2enchmarking !tudy 2>>6#>CH had said that both life and general
insurers were bullish about prospects of insurance penetration in the rural markets.
0ccording to the study about 3> per cent of the life insurers have indicated that by the year
2>1> rural insurance business will constitute between 16#2> per cent of their total
bancassurance new business premium.
2ankers and insurers are both upbeat about the future of the bancassurance segment and it
is e1pected to contribute about 5> per cent or more in the life insurance segment by the year
2>1>. $t has also contributed significantly to the business of ma(or insurance companies like
%ife $nsurance &orporation 9%$&: and !2$ %ife.
The growth in the bancassurance for insurance companies wholly depends on the number
of bank branches that actively dispense these products. 0ccording to industry sources
private and foreign banks are biggest mobilisers of insurance premium despite public sector
banks having a wider reach. $n 0ugust 2>>E bancassurance accounted for 35 per cent of
the premium collected by private players. $n 2>>6;>C that figure was about 1C per cent.

Rur% insurn!e
The $ndian rural market offers tremendous growth opportunities for insurance companies.
0ccording to a survey H$ndia $nvest $ncomes and !avings !urvey 2>>CH by $$F! .ataworks
9a 4oida#based retail finance research firm: 5E per cent of $ndiaHs 1>5.4 million insured
people were from the rural areas.
/et urban $ndia was ahead in terms of penetration 94C per cent: or the number of
policyholders compared with the total population. This meant that almost one out of every
two paid workers in urban $ndia was insured while it was only 2C per cent in rural areas.
7ith increased $3.0 focus on the sector growth rate in the rural sector has been picking
up. 3eliance %ife $nsurance recorded a growth of 15> per cent in rural policies against 14>
per cent growth in urban policies in 2>>C;>E.
0ccording to international consultancy firm &elentHs reportPH!elling %ife $nsurance in
3ural $ndiaP$ndiaHs rural market revenues are e1pected to grow as much as four times to
reach -!G 2.@ billion by 2>15. )ver C> crore people reside in the rural areas of the country
with insurance penetration rate as low as three per cent providing a huge opportunity for
life insurance firms.
0n analysis of data from seven life insurers for 2>>C;>E reveals that insurance firms have
e1ceeded their individual targets laid down by $3.0 in rural $ndia. $&$&$ Brudential %ife
for instance covered 11C>>> customers in rural areas in 2>>C;>E as against its target of
25>>>.
!2$ %ife sold 22 per cent against its e1pected target of 1E per cent. %ife $nsurance
&orporation of $ndia 9%$&: has set a target of four million policies in rural areas in 2>>E;
>@. 3 B !ingh ,1ecutive Kice Bresident I +ead ,merging Farkets for Fa1 4ew /ork
%ife reveals that about C4 per cent of the national population falls under rural category and
there is huge scope for e1ploring this market.


0ccording to him overall about 5>>>>> policies have been sold to the rural sector so
far.O7e plan to ramp up the scale to 1>> hubs and spokes by the end of this year by
launching our services in other states like ?u(arat FaharashtraO he added. Aotak %ife
$nsurance is adding 3 new branches in 0mbala Aarnal and +issar to take the total number
of branches to 1C according to /og 3a( !harma national sales head 9Tied channel: Aotak
%ife $nsurance.O7e are ramping up our distribution significantly to reach up to the Tehsil
level and plan to launch branches in the rural areas to increase our present market share of
2> per cent in northern states.
7ith new branches coming up we will be able to take our services to other semi#urban and
small towns like Aalka Bin(ore 3amgarh etc. )verall Aotak %ife $nsurance sold 25 billion
new premium policies till !eptember end and recorded a growth rate of 114 per cent in the
first year premium income.
3%'6% !'(*nies
The booming domestic insurance market along with saturation of markets in many
developed economies has made the $ndia a very attractive destination for global insurance
ma(ors. Fa(or global names already having a presence in the $ndian market though JKs
with $ndian firms including *rench life insurance company !ogecap -!#based 0merican
$nt. ?roup 90$?: Fa1 Tokio Farine and *ire of Japan &ardiff !0 of *rance and -A#
based Brudential $0? which has tied up with !2$%ife.
!ome of the other ma(or (oint venture companies in this industry are 2a(a( 0llian' $4?
Kysya 0FB !anmar 0ssurance %imited +.*& !tandard 2irla !unlife 0viva %ife
$nsurance Aotak Fahindra )ld Futual Fet %ife 3oyal !undaram and $&$&$#%ombard
among others.

Fany more are to soon enter the $ndian market"
 The latest entrant has been 62, +oldings 900B: Bty %imited a wholly owned subsidiary of
62, 0ustralia which has tied up with 3ahe(a 62, ?eneral $nsurance &ompany %imited a
(oint venture general insurance company promoted by Brism &ements %imited $ndia.
 -! health insurers 0etna 9a 15E#year old company with total revenues for the calendar year
2>>C at -!G 2C.6 billion and net income at -!G 1.E billion is interested in setting up stand#
alone health insurance companies.
 &$?40 another -!#based company 9a health insurer and it also provides life accident health
and e1patriate employee benefits insurance coverage in a few international markets: is
interested in setting up stand#alone health insurance company.
 -A#based company 2upa is also interested in setting up stand#alone health insurance
company.
 0merican company 0ce a leading global commercial property and casualty insurance group is
looking at entering the life and non#life sectors.
 -!#based Travelers ?roup 9Travelers is a big underwriter of property and casualty insurance in
the -! and reported a net written premium of -!G 21.1 billion in 2>>6 is interested in the non#
life sectors. $t is planning to sign an agreement with $ndian engineering ma(or %IT.

M>'r in&es#(en#s
 3eliance &apital is planning -!G 432.26 million as investment for its insurance business over
the ne1t three to five years.
 Fa1 4ew /ork %ife $nsurance has announced a strategic business alliance with 0%,g$)4
$nsurance 2roking wherein the latter would sell Fa1 Ki(ay in Aerala and Tamil 4adu. -nder
the first of its kind distribution initiative 0%,g$)4 will distribute HFa1 Ki(ayH through a fleet
of Faruti vans which would be used as mobile financial service distribution offices.
 The largest insurer in the country would also be investing another -!G 3.6C billion in
government securities. This would take %$&<s total investments in the remaining period of the
current fiscal to around -!G 1>.1@ billion over and above the -!G 2>.EC billion it has already
invested in the first eight months of the current financial year.
 2harti 0Q0 ?eneral $nsurance 9a JK between the 2harti ,nterprises and 0Q0: is planning to
invest -!G 152.@2 million spread over the ne1t five years.
 3anked among the top five life insurance companies 2irla !un %ife $nsurance is planning -!G
2C4.3> million as investment for further e1pansion. $t is presently the fastest growing life
insurer in 2>>E;>@ with a 1EC per cent growth in new business during the first 8uarter.
 $n the first 8uarter of 2>>E;>@ insurance companies have invested -!G 3.1E billion in e8uities
which is four times of what was invested a year ago.

3'&ern(en# Ini#i#i&es
The ?overnment has taken many proactive steps to give a boost to this sector"
 The $nsurance 3egulatory and .evelopment 0uthority 9$3.0: will announce guidelines for
mergers and ac8uisitions 9FI0: in the insurance sector by the end of Farch 2>>@. The
regulator is formulating the guidelines in consultation with the $nstitute of 0ctuaries $3.0
&hairman Fr J +ari 4arayan. $3.0 has cleared 2EE new insurance products this year 92>>E:.
 ,arlier in .ecember 2>>E $3.0 has allowed insurers to ac8uire up to 2> per cent debt and
e8uity in an infrastructure#related company compared with 1> per cent earlier.

 0ccording to $3.0 the move is aimed at enhancing the flow of insurance funds to meet the
present needs of infrastructure financing. 3ela1ing the investment norms further $3.0 has
allowed insurers to invest an additional 5 per cent in debt instruments of infrastructure and
housing companies over and above the 2> per cent ceiling with a prior board approval. The
countryHs largest insurer %$& already holds over 1> per cent in a host of companies which is
likely to increase further.
 $3.0 has constituted a panel that will monitor the role of TB0s and evaluate their performance
in current health insurance market and make suitable recommendations clarifying their utility to
the future growth of the health insurance industry.
 ?overnment is planning to ease restrictions on foreign investments in insurance banking and
pensions and allow foreign direct investment 9*.$: investment of 4@ per cent from the present
26 per cent.
 $3.0 has removed administered pricing mechanism i.e. de#tariffing in respect of fire and
engineering along with motor insurance of general insurance for premium effective from
January 1 2>>C.
 The control rates on fire engineering and workmenHs compensation insurance classes have been
removed from !eptember 1 2>>C.
 !everal states aggressively offering public health insurance schemes to their rural poor. 0 host
of private players are rushing with their offerings sensing huge opportunity in this segment
some state governments have also taken a dynamic role in this sector. $n an arrangement with
the regional rural banks 9332s: the 7est 2engal government is planning to e1tend insurance
facilities to farmers in the 6>;C> yearsH age bracket through a tie#up with $**&)#T)A$)
?eneral $nsurance.
 The +aryana !tate &o#operative !upply and Farketing *ederation %imited 9+0*,.: facilitated
weather#based insurance coverage to contracting farmers through 0$&. 5> per cent of the
premium for this insurance which is -!G 5.E63 Nacre was paid by +0*,.. 25 farmers having
145 acres availed this opportunity in 2>>E.
 The ?overnment of 0ndhra Bradesh after piloting the H0rogya !riH health insurance scheme in
three districts plans to issue health cards to 1E million 2B% 9below the poverty line: families. 0s
a result about 6> million of the !tateHs E> million people will have insurance cover.
 The Aarnataka ?overnment has partnered with the private sector to provide coverage at a low
cost in the /eshaswini $nsurance scheme to provide for ma(or surgical operations including
those pertaining to pre#e1isting conditions to $ndian farmers.

+.. LIFE INSURANCE
%ife insurance is uni8ue among financial instruments. $t is not only a financial instrument
that is based on caring and love but there can be personal advantages to having life
insurance. $t is the real impetus having love for those who cares most about ; to make sure
they are taken care of. !o one can feel pleasure in taking the time to learn about this
sub(ect whether through the company or the organi'ation of anyone<s choice.:
$nterestingly while insurance is taking care of the financial needs of an individualNgroup
and wants to pass on the benefit to spouse or the ne1t generations life insurance can also
develop and build one<s personal financial goals including security while living. *or
e1ample because one has sufficient life insurance he may be able to use more of his
assets to en(oy life after retirement. $n fact if one knows that he is having sufficient life
insurance he won<t feel that he is lowering the inheritance by spending some of his
principal. -nder the scheme of insurance one individual actually =pays down principal5 to
some degree especially if he has lifetime permanent than the life insurance becomes as a
backup.
There are various types of life insurance but they all have some common attributes. The
individual has to pay premiums to an insurance company. 0t the time of insurer<s death the
life insurance company pays an amount to the people whom name is nominated or
mentioned in the policy who is called beneficiaries. 0lso it<s interesting that if the policy
holder named a beneficiary9ies: they<d receive the insurance amount free of income ta1.
!ome types of life insurance have cash benefits available while the insurer is living. $n
these types a portion of premium goes into a cash reserve and builds on a ta1#deferred
basis. The insurer can access this money called cash value. !ome people use it to help
education costs enhance retirement cash flow or for any reason. Two of the most common
types of =permanent life insurance5 are called whole life insurance and universal life
insurance.

&ombined with investments retirement and estate planning a life insurance policy is a
cornerstone of a sound financial plan. 2y looking into this area the insurer is making an
intelligent and caring financial decision for his family. $t is important to have life insurance
and must have enough to protect those one cares about. Thus it is the ob(ect of the company
to provide insurance cover to each and every person who cares his successors.

RE?UIREMENT OF LIFE INSURANCE" #
%ife $nsurance is a contract by which you can protect yourself against specific losses by
paying a premium over a period of time. !ince each one of us during our lives are faced
with numerous risks ; failing health financial losses accidents and even fatalities our
instinct drives us to cover ourselves against those risks.
Though an insurance cover can<t protect you against the emotional losses arising out of
these risks it softens the economic crisis that usually accompanies these losses. %ife
$nsurance gains much more value if you are a nuclear family. -nlike in the traditional (oint
family system in a nuclear family support from the e1tended family cannot be counted
upon. !o it is vital that you have an insurance cover as the protective shield against
unfortunate losses.
0nd it<s not only your life you could insure against those risks. 7ith the $nsurance $ndustry
going through positive changes in the last few decades now you have a variety of risk
coverage options. *or instance products in the market range from whole life insurance to
covering risks associated with home loans.
7hat<s more now you could choose life insurance as an investment option the returns of
which you can en(oy at the most critical phases of your life ; for instance at the time of
your child<s admission into one of those dream institutes.

0nd the insurance industry is constantly evolving. !o you now have a wider option of
insurers ; presenting you with products that not only cover those risks but also act as
wealth accumulation or investment avenues which you should definitely avail of.
7hether you are new to insurance or an informed customer you could always get valuable
information from us.
7e have attempted to cover this site with some comprehensive information on life
insurance. +owever do not hesitate to leave a note for our *inancial 0dvisors. 4ot only
they could provide you with the additional information you might be looking for they can
also help you assess your life insurance needs and invest wisely.

MYTHS OF LIFE INSURANCE" #
There are some myths that are associated with $nsurance. To choose insurance as a good
investment you need to be informed about these myths.
Insurn!e is f'r s&in) #@
The primary function of life insurance is to cover you against sudden losses arising out of
sudden death or liability. -nlike other investment options like the Bublic Brovident *und
that offers 2>D ta1 rebate under !ection EE of the $ncome Ta1 0ct 1@61or other small
savings schemes like post office deposits and national savings certificates $nsurance isn<t a
ta1 saving investment vehicle.
$nsurance primarily offers you complete security arising out of risk coverage against the
uncertainties of life. 0nd secondarily serves you as a good investment option and ta1
saving tool. +ence as an instrument life insurance offers you the ideal blend of risk cover
returns and ta1 benefits.


Insurn!e "'es n'# )i&e )''" re#urns
$t<s true that there are other investment options that could give you more returns than life
insurance. $f returns are evaluated in isolation a fi1ed deposit option offering you 6D
interest definitely looks good in a depressed market. +owever life insurance offers you
other benefits in addition to returns.
*or e1ample say you invest 3s.5>>>N# in fi1ed deposit. /ou would ideally get back the
money at the end of the year with marginal interest. 7hereas if you decide to pay a
premium of 3s.5>>>N# per annum on a life insurance policy you could buy an insurance
cover of 3s.5>>>>N# to 3s.2 lakhs depending on your age and type of policy. 0nd if the
unfortunate happens during the tenure your near and dear ones get to receive the amount
for which you are insured. $f not you get back the entire sum at the end of the tenure.
Insurn!e *r'"u!#s re n'# f%e@i6%e
$nsurance products have become more fle1ible with the introduction of riders that allow
you to customi'e your plan. 3iders allow you to tailor your insurance policy to suit your
uni8ue needs. They are attached to your base policy when it is purchased and are available
at nominal rates. *or e1ample there is the &ritical $llness 3ider which provides for
payment of an amount based on the diagnosis of a critical illness condition of the life
assured. The illnesses covered include critical conditions such as heart attack stroke
cancer kidney failure and ma(or organ transplant.
*le1ibility is also provided through different premium payment options. 2y utili'ing these
payment options you need not get tied down to paying the premiums through out the term
of the policy. 7ith %imited payment option you can complete your premium payments in
short intervals while en(oying the benefits of the policy for a longer term.

M$ ('ne$ )e#s #ie" "'=n in Insurn!e
The withdrawal facility available with select insurance policies makes it possible for you to
withdraw your accumulated money any time when you need it. There are also loan options
available on most policies that enable you to utilise your returns much earlier than the
completion of the term of the policy. $n essence life insurance offers you risk coverage ta1
benefits and returns on investment.

T<e N#ure 'f Insurn!e
The insurance has the following characteristics which are observed in cases of life marine fire
and general insurance.
1. S<rin) 'f risAs
$nsurance is a cooperative device to share the financial losses which might befall on an
individual or his facility on the occurrence of specified event such as sudden death of the bread
winner marine perils in marine insurance fire in the fire insurance and theft insurance etc. in
the case of general insurance.
1. I# is !''*er#i&e "e&i!e
0 large number of persons agree to share the loss arising sue to a particular risk. Thus
insurance is a cooperative device.
1. ,%ue 'f risA
The risk is evaluated before insuring to charge the amount of share called premium.
1. P$(en# ("e # !'n#in)en!$
The payment is made at a certain contingency insured. The &ontingency may be death fire
marine perils etc.
1. A('un# 'f *$(en#
The amount of payment depends upon policy insured.

+.. PROCEDURE OF RECRUITMENT OF FINANCIAL AD,ISORS
Li!ensin) *re-reBuisi#es 'f )en#s: -
 0ll agents in order to obtain a license have to go through a training program and appear for an
e1amination to be conducted by the $3.0. The following is the te1t of 0gentsH course for %ife
as well as 4on#life.
 4 week training from the insurance institution as recogni'ed and prescribed in $3.0 guidelines.
9.esigned to prepare individuals to pass $nsurance 0gent licensing e1aminations:
 The syllabus is designed for practical training for %ife $nsurance 0gents as specified in
%icencing of $nsurance 0gents 3egulations 9herein after called 0gentsH 3egulations:. $t provides
a foundation of knowledge and concepts upon which an individual can build a successful career
as a %ife insurance agent.

Ne!essi#ies f'r 6e!'(in) n %ife insurn!e )en#:
Broof of all these have to be provided to the authority before registration as an agent.
!ection 4294: of the amended $nsurance 0ct 1@3E states that a person taking licence to act
as an insurance agent shall be one who is not"
1. 0 minor
2. *ound to be of unsound mind by a court of competent (urisdiction
3. *ound guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or
an abetment of or attempt to commit such offence by a court of competent (urisdiction
4. *ound guilty of having knowingly participated in or connived at any fraud dishonesty or
misrepresentation against an insurer or an insured.
5. +e must possesses the minimum 8ualification of a pass in 12th standard 91>th standard for rural
agents:
6. +e shall have completed from an approved institution 90n 0gents Training $nstitution approved
by the $nsurance 3egulatory and .evelopment 0uthority: at least 1>> training hours spread
over to three to four weeksM and 9period of training can be reduced under certain circumstances.
Blease see the 0gentsH 3egulations:.
C. +e has passed in the pre#recruitment e1amination conducted by the $nsurance $nstitute of $ndia
Fumbai or any other approved e1amination body.
The e1pectations of the agency system are"
 3''" ser&i!e n" "&i!e " 0gent should offer consumers good service by responding to
customerHs needs in terms of grant of cover advice conduct etc.
 3''" !'n"u!# " 0gent should be willing to promote products in personal lines market making
the best use of their professional ability

Pur*'se 'f #rinin):
 To impart him9her: complete knowledge of products
 To imbibe in him9her: the importance of Bre#and#Bost sale service to customers
 To e8uip him9her: as a trusted professional capable of advising persons on O$nsuranceOM
 To make him9her: as an efficient salesperson M
 To enable him9her: to master various techni8ues in the area of sale of insurance productsM
 To instill in him9her: an ethical code which will inform all his9her: dealings.
Trinin) s!<e"u%e n" s#ru!#ure
1. Pr!#i!% Trinin) Me#<'"'%')$:
 The classroom training may be by means of lectures discussions speechesN seminars 8uestion #
answer sessions case studies role playing e1change of e1periences team training replication
of real life situation in the classroom open house self#study etc.
 The use of various audio#visual devices while taking the lectures like slides overhead
pro(ectors computers markers etc. may be encouraged
 The training institute may ask the faculty to give handoutsN written material on the proposed
lecture to the participants in advance.
 The training institute will arrange to supply every agent an agents manual service manual list
of all the products available in the market a handbook containing specimen copies of proposal
form policy form claim form etc. from the insurance company who has nominated the agent
for the training course.
1. E@(in#i'ns f'r A)en#s:
1. 0ll agents on completion of their training will have to appear in a written
e1amination.
2. The e1am will consist of ob(ective type 8uestions only.
3. The e1am will be of ma1imum 1>> marks.
4. The time for e1amination will be 2 hours.
5. 1>D of 6uestions will be numerical.
6. This will be followed by an interview of 25 marks conducted by the insurance
company.
C. ,very agent will have to score atleast 5>D marks in the written e1am and 6>D in
the interview for 8ualifying in the agentHs e1amination and for award of a certificate.
1. Pr!#i!% Trinin):
 ,very person aspiring to take up agency as a career will have to undergo on the (ob
practical training with the designated company where he will work under the
supervision of a sales functionary.
 The sales functionary will teach the trainee the nuances of creating the need in the
mind of the customer understanding the wants of the clients proposing 2 or 3
solutions for satisfying the want and finally helping him decide the best option and
closing the deal.
 $n addition administrative matters documentation etc. will also be taught to the
trainee.

Fe#ures 'f )''" insurn!e )en#
 $nsurance sales agents must obtain a license from $3.0 after undergone a thorough period of
training for the effective carrying out of operations of business of life insurance.
 !eparate licenses are re8uired for agents to sell life and general insurance.
 %icenses are issued only to applicants who complete specified pre#licensing courses and who
pass $3.0 e1aminations covering insurance fundamentals and insurance laws.
 Finimum 8ualifications for the candidates to become life insurance agents is !enior secondary
9Q$$th: must be passed out or more.
 $nsurance sales agents should be fle1ible enthusiastic confident disciplined hard working and
willing to solve problems. They should communicate effectively and inspire customer
confidence. 2ecause they usually work without supervision sales agents must be able to plan
their time well and have the initiative to locate new clients.

 0n insurance sales agent who shows ability and leadership may become a .evelopment )fficer
in a 2ranch )ffice. 0 few advance 0ssistant 2ranch Fanager 9!ales: and higher marketing
positions. +owever many who have built up a good clientele prefer to remain in sales work.
*or insurance sales agent (obs most companies and independent agencies prefer to hire
college graduatesPespecially those who have ma(ored in business or economics. +igh
school graduates are occasionally hired if they have proven sales ability or have been
successful in other types of work. $n fact many entrants to insurance sales agent (obs
transfer from other occupations.
$n selling commercial insurance technical e1perience in a particular field can help sell
policies to those in the same profession. 0s a result new agents tend to be older than
entrants in many other occupations. &ollege training may help agents grasp the technical
aspects of insurance policies and the fundamentals and procedures of selling insurance.
Fany colleges and universities offer courses in insurance and a few schools offer a
bachelor<s degree in the field. &ollege courses in finance mathematics accounting
economics business law marketing and business administration enable insurance sales
agents to understand how social and economic conditions relate to the insurance industry.
&ourses in psychology sociology and public speaking can prove useful in improving sales
techni8ues. $n addition because computers provide instantaneous information on a wide
variety of financial products and greatly improve agents< efficiency familiarity with
computers and popular software packages has become very important.
0 number of organi'ations offer professional designation programs that certify one<s
e1pertise in specialties such as life health and general insurance as well as financial
consulting. 0lthough voluntary such programs assure clients and employers that an agent
has a thorough understanding of the relevant specialty.

0gents are usually re8uired to complete a specified number of hours of continuing
education to retain their designation. ,mployers also are placing greater emphasis on
continuing professional education as the diversity of financial products sold by insurance
agents increases. $t is important for insurance agents to keep up to date on issues
concerning clients.
&hanges in ta1 laws government benefits programs and other !tate and &entral
?overnment regulations can affect the insurance needs of clients and the way in which
agents conduct business. 0gents can enhance their selling skills and broaden their
knowledge of insurance and other financial services by taking courses at colleges and
universities and by attending institutes conferences and seminars sponsored by insurance
organi'ations.
$3.0 also has mandatory continuing education re8uirements focusing on insurance laws
consumer protection and the technical details of various insurance policies.
Perf'r(n!e:
Fost insurance sales agents are based in small offices from which they contact clients and
provide information on the policies they sell. +owever much of their time may be spent
outside their offices travelling locally to meet with clients close sales or investigate
claims. 0gents usually determine their own hours of work and often schedule evening and
weekend appointments for the convenience of clients. 0lthough most agents work a 4>#
hour week some work 6> hours a week or longer. &ommercial sales agents in particular
may meet with clients during business hours and then spend evenings doing paperwork and
preparing presentations to prospective clients.
E(*%'$(en#
$nsurance sales agents held about 11>>>>> (obs in 2>>5. 0lthough most insurance agents
speciali'e in life or general insurance a growing number of =multi#line5 agents sell all lines
of insurance.







CHAPTER 2 III
.. RESEARCH DESI3N 4 METHODOLO3Y


..RESEARCH DESI3N 4 METHODOLO3Y
..1 Reser!<" # is a process of collecting analy'ing interpreting and summari'ing in a significant
manner for the purpose of framing out necessary conclusion and findings of data perceived and
formulated for deriving out the meaningful information. To carry our research necessary telephonic
calls needed to be done suitable appointments were to be fi1ed and therefore market survey is to be
followed.
..+ O6>e!#i&e 'f #rinin): # =RECRUITMENT OF FINANCIAL AD,ISORS 4 OPERATIONS
MANA3EMENTC
... Pr'!ess" Fethodology or process involving in the 3esearch followed during the course of summer
training is as follows" #
a. &ollection of data " # This is an important aspect in formulating the ob(ective of research process
where the data is collected via two process" # i: Brimary !ources and ii: !econdary sources
i. Primary sources " # 7here the data is collected primarily by interviewing and personal
observation and is original in nature and accurate to the considerable e1tent.
ii. Secondary sources " #7here the data is obtained from some published and printed
sources such as newspaper maga'ines websites and so on.
b. 0naly'ing of collected data " # The data collected through market survey and published sources
is then processed to obtained necessary inferences and findings for the purpose of achieving the
ob(ective as well as to derive necessary conclusion. 0 considerable skill and knowledge is
involved in analy'ing the data for the purpose of interpreting thereof.
c. $nterpreting of data " # it is the significant step where the data collected and analy'ed is
interpreted in the forms of graphs and figures is depicted in the report called Bro(ect report.
d. !ummari'ing of data " # Thereby necessary summary is prepared which is essential in the pro(ect
report of the summer training being done under an organi'ation.

../ ?ues#i'nnire" # 6uestionnaire is a set or group of 8uestions being framed for the purpose of
obtaining market perspective about a particular aspect or topic.
There are two types 8uestionnaire bing carried necessary for the market survey of the summer training
being undertaken and put for the by the trainee to the sample people taken as a base for entire
population"
a. Open ended Questionnaire " # where the people 9also called respondents: are re8uired freedom to
present their views and suggestions for the benefits and success of the organi'ation.
b. Close ended questionnaire " # where the respondents is limited to the choice of answer being
delivered by the interviewer itself so that 8uick and fast means of responses be derived out
without wasting much time. +ere close ended 8uestionnaire being followed by me during the
course of the summer training market survey.

..0 S(*%in)" # !ampling is a process of obtaining a number of individuals taken a base for the entire
population since entire population can not be asked about the necessary ob(ective upon which a
8uestionnaire is put forth needed for the responses to be derived for the purpose of generation of facts
and customer view point regarding their perception of particular product or services.
There are two type of sampling ; i: 3andom !ampling and ii: !ystematic sampling.
i. Random sampling " # 3andom sampling is a process of selecting the sample si'e randomly and
no choice or preference to be made about the selection of respondents for the market survey and
8uestionnaire to be put forth against him. +ere 3andom sampling being adopted by me.
ii. Systematic sampling " # it is a sampling where the limited number of selected respondents is
figured out based on some criteria so that only those respondents can be asked for the purpose
of filing 8uestionnaire.
..1 S(*%e SiDe" # 6> respondents.
..E Li(i##i'ns 'f #<e s#u"$" #
 The primary data used for present study is very time consuming.
 The primary data obtained consists of personal biases of the respondents and even
the non# response factor was observed.
 To obtain the secondary data which is sufficiently accurate and which e1actly
 *its the needs of study is difficult to find.
 The data collected by using a 8uestionnaire involves uncertainty about the response
given by the respondent and hence the accuracy of the answers given is difficult to
presume.







CHAPTER - I,
/. DATA PRESENTATION7 ANALYSIS AND INTERPRETATION


Fi)ure /.1
/. 1. *rom the survey conducted it was inferred from the 6> respondents that 2C of them
were 7orking Brofessionals while 16 were businessmenNpersons 11 were students and
remaining were retired and housewives as was inferred from the survey during the summer
training.
Tabular representation of respondents views
for Q.1
0. 7orking professional 2C
2. 2usinessman 16
&. !tudents 11
.. )therN3etired 6
T6%e /.1
Fi)ure /.+
/.+. $t was depicted from the survey conducted that to 55 of the total 6> respondents know
the term life insurance while 5 don<t have any knowledge about life insurance.yet a need to
educate and be aware about products and plans is desired.
Tabular representation of respondents views
for Q.2
0. /es 55
2. 4o 5
T6%e /.+
Fi)ure /..
/... *urthermore from the survey conducted and 8uestionnaire pertaining to life insurance
when asked whether they are insured with their life a considerable portion of the 36
respondents said R4)< while 24 respondents said that they are insured but with minor risk
coverage as compared to what they should have been.
Tabular representation of respondents views for
Q.3
0. /es 24
2. 4o 36
T6%e /..

Fi)ure /./
/./. 45 respondents have shown a disagreement with the business they are carrying out
presently due to low warning and recognition and would like to have something change in
their life. They have been undertaken as a good prospects who are having a strong urge to
earn and work hard for better recognition in their life.
Tabular representation of respondents views for Q.4
0. /es 45
2. 4o 15
T6%e /./







Fi)ure /.0
/.0. )ut of total 6> respondents surveyed during the course of training 34 respondents
perceive insurance industry as a good one due to better and sound knowledge whereas 15
considered it as a viable and fair industry but still 11 considered as unsuitable due to lot of
criticism being faced.
Tabular representation of respondents for Q.5
0. ?ood 34
2. *air 15
&. -nsuitable 11
T6%e /.0




Fi)ure /.1
/.1. *ollowing table and above represented pie depicts how respondents view a life
insurance agent as a career is"#
Tabula representation of Respondents data for Q.
0. -nlimited potential of earning 1E
2. 3espect with freedom to work 1C
&. 4o overruling 12
.. 0ll of the above 15
T6%e /.1

Fi)ure /.E
/.E. $t was inferred from the survey of 6> potential respondents that almost 4> respondents
did show interest in getting aware regarding life insurance as a golden opportunity to opt it
as a career while 2> denied and said 4).
Tabular representation of Respondents data response for Q.!
0. /es 4>
2. 4o 2>
T6%e /.E
Fi)ure /.5
/.5. 3espondents have ranked the life insurance agency career with the 2irla !un %ife
insurance as follows depicted in the table mentioned below"
Tabula representation of Respondents data for Q."
0. 2etter and more recogni'ed 5
2. ?ood but not earning 12
&. %ess recogni'ed 9
.. 2oredom and monotonous 34
T6%e /.5
Fi)ure /.9
/.9. 42 of the respondents foresee the e1plosive growth in the insurance industry in the
years to come and this would be the only industry who will grow like anything and several
other company will see as their future business diversification prospects.
Tabula representation of Respondents data for Q.#
0. /es 42
2. 4o 18
T6%e /.9
Fi)ure /.18
/.18. due to increasing growth however $ manage 36 respondents who agreed to hear about
the fascinating business opportunity of becoming an life insurance agent and (oin this noble
cause business and serve the community. 7hile others havn<t directly said no rather they
have made to consider it in future.

Tabula representation of Respondents data for Q.1$
/es 36
4o 24
T6%e /.18







CHAPTER 2 ,
0.1 S-OT ANALYSIS
0.+ RECOMMENDATIONS
0.. CONCLUSION


0.1 S-OT ANALYSIS

1. STREN3THS:
 2irla !un %ife $nsurance pioneered the uni8ue -nit %inked %ife $nsurance !olutions in $ndia.
 7ithin 4 years of its launch 2!%$ has cemented its position as a leading player in the Brivate
%ife $nsurance $ndustry
 Fulti .istribution &hannels# .irect !ales *orce 0lternate &hannels and ?roup offering
convenient channels of purchase to customers.
 7eb#enabled $T systems for superior customer services.
 *irst to have issued policies over the $nternet.
 *irst to have an operational 2usiness &ontinuity Blan.
 !trong fundamentals based on the 0ditya 2irla groupHs local insight and !un %ife *inancialsHs
global e1pertise.

1. -EAFNESSES:
 Beople trust %$& presently as it is a ?overnment concern.
 0gents are not professional and well being.

1. OPPORTUNITIES:
 %ow competition as only 15 insurers in the $ndian market e1ists.
 0 vast untapped market of over 1>> crores of population.
 4ear about 2>D of overall insurance has been done in the past 5> years so a large scope e1ists.

1. THREATS:
 *re8uency of new entrants in life insurance is raising competition.
 Futual *unds !ecurities 2ankingsc are posing a great challenge.
 %ow awareness and adherence to %$&


0.+ RECOMMENDATIONS
*ollowing are recommendations for the benefits of the company"
 Broper awareness with respect to %icensing of 0gencies and people to opt it as a great career
approach.
 The plans and policies of the company shouls be fle1ible and there should be transparency in it.
 $n each and every district there should be one branch of 2$3%0 !-4%$*,.
 There should not be the territory restrictions.
 &ompany should put stress on rural market also.
 &ompany should provide new advisors training program time to time and motivate them by
regular meetings and give them awards according to their performance.
 &ompany should publish its weekly review of internal and e1ternal competitive business.
 &ompany should invites the potential customers who invests more money in the plans and
generates their interest to invest more in new modified plans.


0.. CONCLUSION
There was a great e1perience working for the recruitment of the life insurance advisor and delighted to
serve for the company which is working for a noble cause service. $n the due course of my summer
training $ met with around 5> people in the course duration.
$ come to the conclusion that most of the people are having an urge to earn more than their current
status but they are not getting any kind right of opportunity they desire in which mode they earnM what
they need in a legal and better way. Fany of them as and when they know about the beneficial aspects
of becoming an insurance advisor they grab this opportunity in one way or other.
$n my study $ draw the conclusion that people getting fre8uently associated with the business of life
insurance. 0lso life insurance business is growing at a very rapid pace and more and more multi
corporates are forming (oint ventures with leading foreign insurance players to start the business of life
insurance with the legal approval from $3.0. ,ven 0$3T,% has been entered into the business of life
insurance with 0Q0 life insurance.


BIBLIO3RAPHY
BOOFS:
A)T+03$ &.3." Research Methodology Management .
r"
E"i#i'n
A)T%,3 B+$%$B" Marketing Management5 11
#<
Re&ise" e"i#i'n 2>>2
3UPTA S.P." Statistical Methods = Thirteen revised edition 2>>1

REFERENCES
-e6si#es" #
www.birlasunlife.com
www.irdaindia.org
www.liccouncil.org
www.businessconnect.com

APPENDICES - ?UESTIONNAIRE
4ame" #SSSSSSSSSSSSSSSSSSSSSSSS
)ccupation" # SSSSSSSSSSSSSSSSSSSSSS
.ate of 2irth" # SSSSSSSSSSSSSSSSSSSSS
Resi"en# %'!#i'n: - GGGGGGGGGGGGGGGGGGG
?.1 Are $'u :
0. 7orking professional 
2. 2usinessman 
&. !tudents 
.. )therN3etired 
?. + D' $'u An'= Life insurn!eH
0. /es 
2. 4o 
?.. H&e $'u 6een insure" =i#< %ife insurn!eH
0. /es 
2. 4o 
?./ Are $'u s#isfie" fr'( #<e *resen# ='rAin) *r'fessi'nH
0. /es
2. 4o

?.0 H'= "' $'u *er!ei&e Insurn!e in"us#r$H
0. ?ood
2. *air
&. -nsuitable
?.1 H'= $'u &ie= Life insurn!e )en# s n !reerH
0. -nlimited potential of earning 
2. 3espect with freedom to work 
&. 4o overruling 
.. 0ll of the above 
?.E -'u%" $'u %iAe #' 6e An'= 6'u# #<e )'%"en '**'r#uni#$ 'f !reer (Ain) in %ife
insurn!e #<# ($ !<n)e $'ur %ifeH
0. /es 
2. 4o 
?.5 H'= "' $'u &%ue $'ur *r'fessi'nH
0. 2etter and more recogni'ed 
2. /ield yet unsatisfied 
&. %ess recogni'ed 
.. 2oredom and monotonous 
?.9 D' $'u f'resee #<e e@*%'si&e )r'=#< in Insurn!e in"us#r$ in #<e $ers #' !'(e in
#<e n#i'n 'f '&er 188 (i%%i'n *e'*%e %i&in)H
0. /es
2. 4o

?.18 -'u%" $'u %iAe #' An'= ('re 6'u# #<e si)nifi!n!e 'f Li!ensin) 'f )en#s &i
BIRLA SUNLIFE n" %iAe #' >'in i# s )''" !reer **r'!<H
0. /es
2. 4o
Y'urs Su))es#i'ns: -
1. SSSSSSSSSSSSSSSSSSSSSSSS
1. SSSSSSSSSSSSSSSSSSSSSSSS
2. SSSSSSSSSSSSSSSSSSSSSSSS
3. SSSSSSSSSSSSSSSSSSSSSSSS
4. SSSSSSSSSSSSSSSSSSSSSSSS