Birla Sun Life

SUBMITTED TO SUBMITTED BY
Mr.B.S.Rao Sir Garima Khandelwal
B2-17
PGDM BI!""S#

INTRODUCTION

In$%ran&e ' (olle&)i*e +earin, o- Ri$.
Insurance is nothing but a system of spreading the risk of one onto the shoulders of
many. While it becomes somehat impossible for a man to bear by himself !""#
loss to his on property or interest arising out of an unforeseen contingency$
insurance is a method or process hich distributes the burden of the loss on a
number of persons ithin the group formed for this particular purpose.
%asic &uman trait is to be a'erse to the idea of risk taking. Insurance$ hether life
or non(life$ pro'ides people ith a reasonable degree of security and assurance
that they ill be protected in the e'ent of a calamity or failure of any sort.
Insurance may be described as a social de'ice to reduce or eliminate risk of loss to
life and property. Under the plan of insurance$ a large number of people associate
themsel'es by sharing risks attached to indi'iduals. The risks$ hich can be insured
against$ include fire$ the perils of sea$ death and accidents and burglary. )ny risk
contingent upon these$ may be insured against at a premium commensurate ith the
risk in'ol'ed. Thus collecti'e bearing of risk is insurance.
• Insurance Indemnifies )ssets * Income. +'ery )sset has a 'alue and
generates Income to its Oner. There is a normally e,pected -ife(time for the
)sset during hich time it is e,pected to perform. If the )sset gets lost
earlier$ being destroyed or made Non(functional through an )ccident or other
unfortunate e'ent the Oner is .re/udiced. Insurance helps to reduce
CON0+1U+NC+0 of such )d'erse Circumstances hich are called Risks
• Insurance is the science of spreading of the risk. It is the system of
spreading the losses of an Indi'idual o'er a group of Indi'iduals
• Insurance is a 2ethod of sharing of financial losses of a fe from a
common fund formed out of Contribution of the many ho are e3ually
e,posed to the same loss
• What is uncertainty for an Indi'idual becomes a certainty for a
4roup. This is the basis of )ll Insurance Operations. Thus insurance
con'ert uncertainties to certainty
D+5INITION0
The definition of insurance can be made from to points6
1 5unctional definition.
2 Contractual definition.
Functional definition
Insurance is a co(operati'e de'ice to spread the loss caused by a particular risk
o'er a number of persons ho are e,posed to it and ho agree to insure
themsel'es against the risk.
General Definition
Insurance has been defined to be that in hich a sum of money as a premium is
paid in consideration of the insurer7s incurring the risk of paying a large sum upon
a gi'en contingency.
In the ords of 8ohn 2agee$ 9Insurance is a plan by themsel'es hich
large number of people associate and transfer to the shoulders of all$ risks that
attach to indi'iduals.:
Fundamental Definition
In the ords of D.0. &ansell$ 9Insurance accumulated contributions of all parties
participating in the scheme.:
Contractual Definition
In the ords of /ustice Tindall$ 9Insurance is a contract in hich a sum of money is
paid to the assured as consideration of insurer7s incurring the risk of paying a large
sum upon a gi'en contingency.:

&I0TOR; O5 IN0UR)NC+
Worldwide History
To talk about the insurance companies$ insurance in modern form had occurred
after the 4reat 5ire in -ondon in !<<< hich destroyed myriad houses. Nicholas
%arbon$ folloing the disaster$ had established +ngland=s first fire insurance
company >The 5ire Office? in!<@". In the United 0tates$ the first insurance
company hich pro'ided fire insurance as formed in 0outh CarolinaA in
!BCD.The practice of perpetual insurance against fire as populariEed by
%en/amin 5ranklin. In !BFD$ he founded the .hiladelphia Contribution ship for the
Insurance of &ouses. In India$ the Oriental -ife Insurance Company as started
in !@!@ by +uropeans$ much before independence. The first indigenous insurance
company in India as started in the year !@B" in the form of %ombay 2utual -ife
)ssurance 0ociety.
Babylonia
The roots of insurance might be traced to %abylonia$ here traders ere
encouraged to assume the risks of the cara'an trade through loans that ere
repaid >ith interest? only after the goods had arri'ed safelyGa practice
resembling bottomry and gi'en legal force in the Code of &ammurabi >c.D!""
%.C.?. The .hoenicians and the 4reeks applied a similar system to their seaborne
commerce. The Romans used burial clubs as a form of life insurance$ pro'iding
funeral e,penses for members and later payments to the sur'i'ors.
Europe
With the groth of tons and trade in +urope$ the medie'al guilds undertook to
protect their members from loss by fire and shipreck$ to ransom them from
capti'ity by pirates$ and to pro'ide decent burial and support in sickness and
po'erty
London
In -ondon$ -loyd=s Coffee &ouse >!<@@? as a place here merchants$ ship(
oners$ and underriters met to transact business. %y the end of the !@th cent.
-loyd=s had progressed into one of the first modern insurance companies. In !<HC
the astronomer +dmond &alley constructed the first mortality table$ based on the
statistical las of mortality and compound interest. The table$ corrected >!BF<? by
8oseph Dodson$ made it possible to scale the premium rate to ageA pre'iously the
rate had been the same for all ages.
New York City
The Ne ;ork fire of !@CF called attention to the need for ade3uate reser'es to
meet une,pectedly large lossesA 2assachusetts as the first state to re3uire
companies by la >!@CB? to maintain such reser'es. The great Chicago fire >!@B!?
emphasiEed the costly nature of fires in structurally dense modern cities.
Reinsurance$ hereby losses are distributed among many companies$ as de'ised
to meet such situations and is no common in other lines of insurance. The
Workmen=s Compensation )ct of !@HB in %ritain re3uired employers to insure
their employees against industrial accidents. .ublic liability insurance$ fostered by
legislation$ made its appearance in the !@@"sA it attained ma/or importance ith
the ad'ent of the automobile In recent years
insurance premiums >particularly for liability policies? ha'e increased rapidly$
lea'ing unprecedented numbers of )mericans uninsured. 2any blame the
insurance conglomerates$ contending that U.0. citiEens are paying for bad risks
made by the companies. Insurance companies place the burden of guilt on la
firms and their clients$ ho they say ha'e brought unreasonably large ci'il suits to
court$ a
trend that has become so common in the United 0tates that legislation has been
proposed to limit lasuit aards. Catastrophic earth3uakes$ hurricanes$ and
ildfires in late !H@"s and the H"s ha'e also strained many insurance company=s
reser'es.
nsurance ndian !istory
The history of life insurance in India dates back to !@!@ hen it as concei'ed as a
means to pro'ide for +nglish Widos. Interestingly in those days a higher
premium as charged for Indian li'es than the non(Indian li'es as Indian li'es
ere considered more riskier for co'erage.
The %ombay 2utual -ife Insurance 0ociety started its business in !@B". It as the
first company to charge same premium for both Indian and non(Indian li'es. The
Oriental )ssurance Company as established in !@@". The 4eneral insurance
business in India$ on the other hand$ can trace its roots to the Triton >Tital?
Insurance Company -imited$ the first general insurance company established in
the year !@F" in Calcutta by the %ritish. Till the end of nineteenth century
insurance business as almost entirely in the hands of o'erseas companies.
Insurance regulation formally began in India ith the passing of the -ife
Insurance Companies )ct of !H!D and the pro'ident fund )ct of !H!D. 0e'eral
frauds during D"=s and C"=s sullied insurance business in India. %y !HC@ there ere
!B< insurance companies. The first comprehensi'e legislation as introduced ith
the Insurance )ct of !HC@ that pro'ided strict 0tate Control o'er insurance
business. The insurance business gre at a faster pace after independence. Indian
companies strengthened their hold on this business but despite the groth that as
itnessed$ insurance remained an urban phenomenon.
The 4o'ernment of India in !HF<$ brought together o'er DI" pri'ate life insurers
and pro'ident societies under one nationaliEed monopoly corporation and -ife
Insurance Corporation >-IC? as born. NationaliEation as /ustified on the
grounds that it ould create much needed funds for rapid industrialiEation. This
as in conformity ith the 4o'ernment=s chosen path of 0tate lead planning and
de'elopment.
The >non(life? insurance business continued to thri'e ith the pri'ate sector till
!HBD. Their operations ere restricted to organiEed trade and industry in large
cities. The general insurance industry as nationaliEed in !HBD. With this$ nearly
!"B insurers ere amalgamated and grouped into four companies( National
Insurance Company$ Ne India )ssurance Company$ Oriental Insurance
Company and United India Insurance Company. These ere subsidiaries of the
4eneral Insurance Company >4IC?.
The general insurance business as nationaliEed after the promulgation of 4eneral
Insurance %usiness >NationaliEations? )ct$ !HBD. The post(nationaliEation general
insurance business as undertaken by the 4eneral Insurance Corporation of India
>4IC? and its I subsidiaries6
!. Oriental Insurance Company -imitedA
D. Ne India )ssurance Company -imitedA
C. National Insurance Company -imitedA and
I. United India Insurance Company -imited.
"ome of t!e important milestones in t!e life insurance business in ndia are#
!@F" 6 Non life insurance debuts ith triton insurance company.
!@B" 6%ombay mutual life assurance society is the first Indian oned life insurer
!H!D6 The Indian -ife )ssurance Companies )ct enacted as the first statute to
regulate the life insurance business.
!HD@ 6The Indian Insurance Companies )ct enacted to enable the go'ernment to
collect statistical information about both life and non(life insurance businesses.
!HC@6 +arlier legislation consolidated and amended to by the Insurance )ct ith
the ob/ecti'e of protecting the interests of the insuring public.
!HF<6 DIF Indian and foreign insurers and pro'ident societies taken o'er by the
central go'ernment and nationaliEed. -IC formed by an )ct of .arliament$ 'iE.
-IC )ct$ !HF<$ ith a capital contribution of Rs. F Crore from the 4o'ernment of
India.
The 4eneral insurance business in India$ on the other hand$ can trace its roots to
the Triton Insurance Company -td.$ the first general insurance company
established in the year !@F" in Calcutta by the %ritish.
"ome of t!e important milestones in t!e $eneral insurance business in ndia are#
!H"B The Indian 2ercantile Insurance -td. set up$ the first company to transact
all classes of general insurance of India.
!HFB 4eneral Insurance Council$ a ing of the Insurance )ssociation of India$
frames a code of conduct for ensuring fair conduct and sound business practices.
!H<@ The Insurance )ct amended to regulate in'estments and set minimum
sol'ency margins and the Tariff )d'isory Committee set up.
!HBD The 4eneral Insurance %usiness >NationaliEation? )ct$ !HBD nationaliEed
the general insurance business in India ith effect from !st 8anuary !HBC. !"B
insurers amalgamated and grouped into four companies7 'iE. the National
Insurance Company -td.$ the Ne India )ssurance Company -td.$ the Oriental
Insurance Company -td. and the United India Insurance Company -td. 4IC
incorporated as a company.
2alhotra Committee
In !HHC$ 2alhotra Committee( headed by former 5inance 0ecretary and R%I
4o'ernor R.N. 2alhotra( as formed to e'aluate the Indian insurance industry
and recommend its future direction. The 2alhotra committee as set up ith the
ob/ecti'e of complementing the reforms initiated in the financial sector. The
reforms ere aimed at creating a more efficient and competiti'e financial system
suitable for the re3uirements of the economy keeping in mind the structural
changes currently underay and recogniEing that insurance is an important part
of the o'erall financial
0ystem here it as necessary to address the need for similar reforms. In !HHI$ the
committee submitted the report and some of the key recommendations included6
i% "tructure
4o'ernment should take o'er the holdings of 4IC and its subsidiaries so that these
subsidiaries can act as independent corporations. )ll the insurance companies
should be gi'en greater freedom to operate.
ii% Competition
.ri'ate Companies ith a minimum paid up capital of Rs.!bn should be alloed to
enter the sector. No Company should deal in both -ife and 4eneral Insurance
through a single entity. 5oreign companies may be alloed to enter the industry in
collaboration ith the domestic companies.
.ostal -ife Insurance should be alloed to operate in the rural market. Only one
0tate -e'el -ife Insurance Company should be alloed to operate in each state.
iii% &e$ulatory Body
The Insurance )ct should be changed. )n Insurance Regulatory body should be set up. Controller
of Insurance( a part of the 5inance 2inistry( should be made independent
i'% n'estments
2andatory In'estments of -IC -ife 5und in go'ernment securities to be reduced
from BF# to F"#. 4IC and its subsidiaries are not to hold more than F# in any
company >there current holdings to be brought don to this le'el o'er a period of
time?
'? Customer 0er'ice
-IC should pay interest on delays in payments beyond C" days. Insurance
companies must be encouraged to set up unit linked pension plans.
ComputeriEation of operations and updating of technology to be carried out in the
insurance industry
The committee emphasiEed that in order to impro'e the customer ser'ices and
increase the co'erage of insurance policies$ industry should be opened up to
competition. %ut at the same time$ the committee felt the need to e,ercise caution
as any failure on the part of ne players could ruin the public confidence in the
industry.
The committee felt the need to pro'ide greater autonomy to insurance companies
in order to impro'e their performance and enable them to act as independent
companies ith economic moti'es. 5or this purpose$ it had proposed setting up an
independent regulatory body( The Insurance Regulatory and De'elopment
)uthority.
Reforms in the Insurance sector ere initiated ith the passage of the IRD) %ill in
.arliament in December !HHH. The IRD) since its incorporation as a statutory
body in )pril D""" has fastidiously stuck to its schedule of framing regulations and
registering the pri'ate sector insurance companies. 0ince being set up as an
independent statutory body the IRD) has put in a frameork of globally
compatible regulations. The other decision taken simultaneously to pro'ide the
supporting systems to the insurance sector and in particular the life insurance
companies as the launch of the IRD) online ser'ice for issue and reneal of
licenses to agents. The appro'al of institutions for imparting training to agents has
also ensured that the insurance companies ould ha'e a trained orkforce of
insurance agents in place to sell their products.
.UR.O0+ O5 IN0UR)NC+
1. Insurance spreads the economic burden of losses by using funds
contributed by members of the group to pay for them. Thus$ it is a loss
spreading de'ice.
2. The fundamental purpose of insurance hoe'er is neither the spreading
nor the pre'ention of losses. Rather$ it is reduction of the uncertainty hich
is caused by aareness of the possibility of loss.
3. )n insurance scheme pro'ides certainty for the indi'idual members of the
group by a'eraging loss costs. The contribution made by the indi'idual to
the group is assumed$ on the basis of predictions$ to be his share of losses
suffered by the group.
In e,change for this contribution$ he is assured that the group ill assume any
losses that in'ol'e him. &e transfers his risk to the group and a'erages his loss
costs$ thus substituting certainty for uncertainty. &e pays a certain premium
instead of facing the uncertainty of the possibility of large loss.
5UNCTION O5 IN0UR)NC+
The functions of Insurance can be bifurcated into three parts6
!. .rimary 5unctions
D. 0econdary 5unctions
C. Other 5unctions
The primary functions of insurance include the folloing6
.ro'ide .rotection
The primary function of insurance is to pro'ide protection against future risk$
accidents and uncertainty. Insurance cannot check the happening of the risk$ but
can certainly pro'ide for the losses of risk.
Collecti'e bearing of risk
Insurance is a mean by hich fe losses are shared among larger number of
people. )ll the insured contribute the premiums toards a fund and out of hich
the persons
+,posed to a particular risk is paid.
)ssessment of risk
Insurance determines the probable 'olume of risk by e'aluating 'arious factors
that gi'e rise to risk. Risk is the basis for determining the premium rate also .
.ro'ide Certainty
Insurance is a de'ice$ hich helps to change from uncertainty to certainty.
Insurance is de'ice hereby the uncertain risks may be made more certain.
Research and publicity
Insurers also spend money in research and publicity in creating risk consciousness
amongst hich has a far reaching effect on reduction in national aste.
The secondary functions of insurance include the folloing6
.re'ention of -osses
.re'ention of losses causes lesser payment to the assured by the insurer and this
ill encourage for more sa'ings by ay of premium. Reduced rate of premiums
stimulate for more business and better protection to the insured.
0mall capital to co'er larger risks
Insurance relie'es the businessmen from security in'estments$ by paying small
amount of premium against larger risks and uncertainty.
Contributes toards the de'elopment of larger industries
Insurance pro'ides de'elopment opportunity to those larger industries ha'ing
more risks in their setting up. +'en the financial institutions may be prepared to
gi'e credit to sick industrial units hich ha'e insured their assets including plant
and machinery.
If impro'es efficiency
The insurance eliminates orries and miseries of loans at death and destruction of
property. The carefree person an de'ote his body and soul together for better
achie'ement. It impro'es not only his efficiency$ but the efficiencies of the masses
are also ad'anced.
It helps economic progress
The insurance by protecting the society from huge losses of damage$ destruction
and death$ pro'ides an initiati'e to ork hard for the betterment of the masses.
The ne,t factor of economic progress. The capital is also immensely pro'ided by
the masses. The property$ the 'aluable assets$ the man$ the machine and the society
cannot lose much at the disaster.
The other functions of insurance include the folloing 6
2eans of sa'ings and in'estment
Insurance ser'es as sa'ings and in'estment$ insurance is a compulsory ay of
sa'ings and it restricts the unnecessary e,penses by the insured=s 5or the purpose
of a'ailing income(ta, e,emptions also$ people in'est in insurance.
0ource of earning foreign e,change
Insurance is an international business. The country can earn foreign e,change by
ay of issue of marine insurance policies and 'arious other ays.
Risk 5ree trade
Insurance promotes e,ports insurance$ hich makes the foreign trade risk free
ith the help of different types of policies under marine insurance co'er.
N)TUR+ O5 IN0UR)NC+
0haring of risk
Insurance is a de'ice to share the financial losses hich might be fall on an
indi'idual or his family on the happening of specified e'ent. The e'ent may be
death$ incase of life insurance$ marine perils$ marine insurance$ fire in fire
insurance and other certain e'ents in general insurance.

Co(operati'e De'ice
The most important feature of e'ery insurance plan is the co(operation of large
number of persons ho$ agree to share the financial loss arising due to a particular
risk hich is insured. )ll co(operati'e de'ices$ there is no compulsion here on
anybody to purchase the insurance policy.
Jalue of risk
The risk is e'aluated before inuring to charge the amount of share of an insured$
here is called$ consideration or premium. If there is e,pectation of more loss$
higher premium may be charged. 0o$ the probability of loss is calculated at the
time of insurance.
.ayment at Contingency
The payment is made at a certain contingency insured. If the contingency occurs$
payment is made. 0ince the life insurance is a contract of certainty$ because the
contingency$ the death or the e,piry of term$ ill certainly occur$ the payment is
certain.
)mount of payment
The amount of payment depends upon the 'alue of loss occurred due to the
particular insured risk pro'ided insurance is there up to that amount. In case of
life insurance$ the insurer promises to pay a fi,ed sum on the happening of an
e'en. >+ither death or the e,piry of the term?.
-arge number of insured persons
The co(operation of a small number of persons may also be insurance but in that
case$ the cost of insurance to each number may be higher. In case of large number
of persons opposite condition is applicable.
Insurance is not gambling
The insurance is /ust opposite of gambling. In gambling by bidding the persons
e,poses himself to risk of losing $in the insurance the insured is alays opposed to
risk and ill suffer loss if he is not insured.
Insurance is not charity
Charity is gi'en ithout consideration but security and safety pro'ided by
insurance is not possible ithout consideration or premium. It pro'ides security
and safety to an indi'idual and to the society although it is a kind of business
because inconsideration of premium it guarantees the payment of loss.
.RINCI.-+ O5 IN0UR)NC+
.rinciples of Co(operation.
Insurance is co(operati'e de'ice. If one person is pro'iding for his on losses$ it
can not be strictly insurance because in insurance$ the loss is shared by a group of
persons ho are illing to co(operate. It is the duty and responsibility of the
insurer to obtain ade3uate funds from the members of the society to pay them at
the happening of the insured risk. Thus$ the shares of loss took the form of
premium. Today$ all the insured
gi'e a premium to /oin the scheme of insurance. Thus$ the insured are co(operating
to share the loss of an indi'idual be payment of a premium in ad'ance.
.rinciples of .robability
The loss in the shape of premium can be distributed only on the basis of theory of
probability. The chances of loss are estimated in ad'ance to affi, the amount of
premium. 0ince the degree of loss depends upon 'arious factors$ the affecting
factors are analyEed before determining the amount of loss. With the help of this
principle$ the uncertainty of loss is con'erted into certainty. The insurer ill ha'e
not to suffer loss as ell ha'e to gain indfall. Therefore$ the insurer has to charge
only so much of amount hich is ade3uate to meet the loss. The probability tells
hat the chances of loss are and hat ill be the amount of losses.
The insurance$ on the basis of past e,perience$ present conditions and future
prospects$ fi,es the amount of premium. Without premium$ no(operation is
possible and the premium can not be calculated ithout the help of theory of
probability$ and conse3uently no insurance is possible. 0o$ these to principles are
the to main legs of insurance.


5OR2)TION O5 IN0UR)NC+ R+4U-)TION )ND D+J+-O.2+NT
)UT&ORIT; )CT
The Insurance )ct$ !HC@ had pro'ided for setting up of the Controller of Insurance
to act as a strong and poerful super'isory and regulatory authority for
insurance. .ost nationaliEation$ the role of Controller of Insurance diminished
considerably in significance since the 4o'ernment oned the insurance
companies. %ut the scenario changed ith the pri'ate and foreign companies
foraying in to the insurance sector. This necessitated the need for a strong$
independent and autonomous Insurance Regulatory )uthority as felt. )s the
enacting of legislation ould ha'e taken time$ the then 4o'ernment constituted
through a 4o'ernment resolution an Interim Insurance Regulatory )uthority
pending the enactment of a comprehensi'e legislation.
The Insurance Regulatory and De'elopment )uthority )ct$ !HHH is an act to
pro'ide for the establishment of an )uthority to protect the interests of holders of
insurance policies$ to regulate$ promote and ensure orderly groth of the
insurance industry and for matters connected thereith or incidental thereto and
further to amend the Insurance )ct$ !HC@$ the -ife Insurance Corporation )ct$
!HF< and the 4eneral insurance %usiness >NationaliEation? )ct$ !HBD to end the
monopoly of the -ife Insurance Corporation of India >for life insurance business?
and 4eneral Insurance Corporation and its subsidiaries >for general insurance
business?.
The act e,tends to the hole of India and ill come into force on such date as the
Central 4o'ernment may$ by notification in the Official 4aEette specify. Different
dates may be appointed for different pro'isions of this )ct.
The )ct has defined certain termsA some of the most important ones are as
follos appointed day means the date on hich the )uthority is established under
the act. )uthority means the established under this )ct.
Interim Insurance Regulatory )uthority means the Insurance Regulatory
)uthority set up by the Central 4o'ernment through Resolution No. !B>D?K HI(lns(
J dated the DCrd 8anuary$ !HH<. Words and e,pressions used and not defined in
this )ct but defined in the Insurance )ct$ !HC@ or the -ife Insurance Corporation
)ct$ !HF< or the 4eneral Insurance %usiness >NationaliEation? )ct$ !HBD shall ha'e
the meanings respecti'ely assigned to them in those )cts. ) ne definition of
LIndian Insurance CompanyL has been inserted. LIndian insurance companyL
means any insurer being a company
>a? hich is formed and registered under the Companies )ct$ !HF<
>b? in hich the aggregate holdings of e3uity shares by a foreign company$
either by itself or through its subsidiary companies or its nominees$ do not
e,ceed tenty(si, per cent. .aid up capital in such Indian insurance
company >c? hose sole purpose is to carry on life insurance business$
general insurance business or re(insurance business.

CO2.)N; .RO5I-+
%irla 0un -ife Insurance Company -imited >%0-I?
M '
(ision
To create long term 'alue along ith market leadership

2ission
• To help people mitigate risks of life$ accident$ health and money at all stages
and under all circumstances
• +nhance the financial future of our customers$ including enterprises.
Jalues
• Integrity
• Commitment
• .assion
• 0eamlessness
%irla -ife Insurance Co -td market share of the company increased from !.DD#
to D.!!# in D""B("@. The company mo'ed to the Bth position in D""B("@ from @the
a year before$ pushing don 2a, Ne ;ork -ife insurance company.
)bout %irla 0un -ife Insurance Company -imited
 %irla 0un -ife Insurance pioneered the uni3ue Unit -inked -ife Insurance
0olutions in India.
 Within I years of its launch$ %0-I has cemented its position as a leading
player in the .ri'ate -ife Insurance Industry.
 There has been focus on In'estment -inked Insurance .roducts$ supported
ith protection products to maintain leadership in product inno'ation.
 2ulti Distribution Channels( Direct 0ales 5orce$ )lternate Channels and
4roup offering con'enient channels of purchase to customers.
 Web(enabled IT systems for superior customer ser'ices.
 5irst to ha'e issued policies o'er the Internet.
 Corporate go'ernance and a high degree of transparency in all business
practices and procedures.
 5irst to ha'e an operational %usiness Continuity .lan.
0trong fundamentals based on the )ditya %irla group=s local insight and 0un -ife
financial global e,pertise.
.)RTN+R0&I.
%riefing mediapersons$ %irla said$ LThe insurance sector$ hich is a knoledge
based industry is to be one of our core business. Our 'ision is to be among the top
fi'e insurance companies in India and in this regard$ e ha'e aligned ith one of
the best companies(the 0un -ife financial group.
The partnership is based on 'alues$ mutual respect$ integrity and customer focus.
0un life financial is indeed delighted to be back in India in the insurance sector
after almost I" years.L
LOur group holding is BI per cent$ ith Indian Rayon and %irla 4lobal 5inance
-td ha'ing a stake of <H per cent and F per cent respecti'ely$ hile 0un -ife
financial holds D< per cent. The current capitaliEation of this 'enture stands at Rs
!D" crore.L
&e informed the gathering that the current funding for the insurance business Lin
no ay affects Indian Rayon=s e,isting capL. LConsidering the immense groth
potential of the life insurance business$ this 'enture ill definitely create 'alue for
our three lakh shareholders. Our group=s e,tensi'e presence in India as ell as our
netork of employees$ shareholders and distributors is a great ad'antage$ hich
our insurance business ill le'erage. We ha'e a recepti'e population of o'er a
million stakeholders$L %irla added.
&e also said that the ne team for the insurance company as declared and that
Don 0teard$ chairman * C+O of 0un -ife financial ser'ices$ takes o'er as the
chairman of the %irla 0un -ife insurance board of directors. Numarmanagalam
%irla continues as a director on the board. The total !D directors ha'e been
nominated consisting of si, directors each from )ditya %irla group and %irla 0un
-ife insurance company.
8OINT J+NTUR+0
%irla 0un -ife under the management of 2r. Nani %. 8a'eri as the C+O is a Rs.
!@" crore e3uity capital company. %irla 0un -ife Insurance Co. -td is a D<6BI /oint
'enture beteen 0un -ife 5inancial 0er'ices Canada and )ditya %irla 4roup. 8ust
four years don the industry pipeline$ %irla 0un -ife Insurance or %0-I has
secured a lead in pri'ate life insurance market.
)bout the )ditya %irla 4roup6
The )ditya %irla 4roup has a turno'er e,ceeding Rs. D@$""" crores >as on C!
2arch D""I? and is one of the largest business houses in India. It en/oys a
leadership position in all the sectors in hich it operates. With o'er BF business
units$ spanning the 0outh +ast )sian belt$ )frica$ Canada and the UN$ among
others$ it is reckoned as India=s first multinational corporation. The group is
anchored by BD$""" employees and has se'en lakh shareholders$ ith an asset base
of o'er Rs.DC$""" crores.
)bout 0un -ife 5inancial Inc.6
0un -ife 5inancial Inc. is a leading international financial ser'ices organiEation
pro'iding a di'erse range of ealth accumulation and protection products and
ser'ices to indi'iduals and corporate customers. Tracing its roots back to !@<F$
0un -ife 5inancial and its partners today ha'e operations in key markets
orldide$ including Canada$ the United 0tates$ the United Ningdom$ &ong Nong$
the .hilippines$ 8apan$ Indonesia$ India$ China and %ermuda. )s of C! 2arch
D""I$ the 0un -ife 5inancial group of companies had total assets under
management of U0D D@D billion.
0un -ife 5inancial Inc. trades on the Toronto >T0O?$ Ne ;ork >N;0+? and
.hilippine >.0+? stock e,changes under ticker symbol L0-5L.
0.)N O5 OR4)NI0)TION
• (EO
• (!O
• Senior /i&e Pre$iden)- Dire&) Sale$ !or&e$
• Senior /i&e Pre$iden) 0"l)erna)e (hannel "nd Gro%1 2i-e
• Senior /i&e Pre$iden) and "11oin)ed "&)%ar3
• /i&e Pre$iden) - Mar.e)in, and (omm%ni&a)ion
• /i&e Pre$iden) - Plannin,4 2e,al and !inan&e
• /i&e Pre$iden) - Te&hnolo,3
• /i&e Pre$iden) - Im1lemen)a)ion4 (on)rol and "dmini$)ra)ion
• /i&e Pre$iden) - (lien) Ser*i&e$ and Underwri)in,
• /i&e Pre$iden) - !ield O1era)ion$ Dire&) Sale$ !or&e

N+; .+R0ON0
5ame Nani 8a'eri
De$i,na)ion (EO
5ame )nil 8. 8hala
De$i,na)ion (!O
5ame +. N. 4o'eia
De$i,na)ion Senior /i&e Pre$iden) - Dire&) Sale$ !or&e
5ame .. Nandagopal
De$i,na)ion Senior /i&e Pre$iden) - "l)erna)e (hannel and Gro%1 2i-e
5ame N.0. 4opalakrishnan
De$i,na)ion Senior /i&e Pre$iden) and "11oin)ed "&)%ar3
5ame )n/ana 4real
De$i,na)ion /i&e Pre$iden) - Mar.e)in, and (omm%ni&a)ion
5ame 2ayank %athal
De$i,na)ion /i&e Pre$iden) - Plannin,4 2e,al and !inan&e
5ame 2.C Raisinghani
De$i,na)ion /i&e Pre$iden) - Te&hnolo,3
5ame 0nehal 0hah
De$i,na)ion /i&e Pre$iden) - Im1lemen)a)ion4 (on)rol and "dmini$)ra)ion
5ame 2ario %raganEa
De$i,na)ion /i&e Pre$iden) - (lien) Ser*i&e$ and Underwri)in,
5ame 2urli Iyer
De$i,na)ion /i&e Pre$iden) - !ield O1era)ion$ Dire&) Sale$ !or&e
%U0IN+00 .+R5OR2)NC+ IN T&+ -)0T 5I0C)-
• )chie'ed a first year eighted annualiEed premium of Rs. D$D"I crores$ as
against Rs. HFC corers in the pre'ious year
• a groth of o'er !C!#$ amongst the highest in the industry
• impro'ed market share considerably
• ranked number si, amongst pri'ate sector players
• Re'enue groth of HI# to Rs. I$"!D corers$ from Rs. D$"<H crores last year
• -aunched !" products in indi'idual life segment and D in 4roup business
segment
• )n aggressi'e groth in customer contact points
• No. of branches has gron from !CB to CCH$ ith another D<! branches
going on stream from 1! D""@("H
• No. of agents has gron from F<$ """ to !!F$ """$ o'er the year
• 0trong fund performance
5UTUR+ .+R5OR2)NC+ .-)NNIN4
Comparati'e study of %0-I7s %usiness .erformance 1! 5; D""B("@ and 1! 5;
D""@("H
%0-I >1! 5; D""B("@? %0-I >1! 5; D""@("H?
Mar.e) Share-6.78 Mar.e) Share-@.!F#
Grow)h Ra)e Indi*id%al 9 Gro%1# Grow)h Ra)e Indi*id%al 9 Gro%1#
228 1768
"nn%ali:ed Premi%m E;%i*alen) "PE# "nn%ali:ed Premi%m E;%i*alen)
"PE#
R$. 1<=.> Rs. F"B.I
%irla 0un -ife Insurance Company -td. >%0-I?$ the pioneer of Unit -inked -ife
Insurance plans amongst the pri'ate life insurers in India$ has registered strong
groth amongst the pri'ate life insurers$ as per reports for the 1! of the fiscal
D""@("H. )s per the 1! 5; D""@("H figures$ %0-I has a market share of @.!F#
amongst pri'ate life insurance players as compared to %0-I7s market share for 1!
5; D""B("@$ hich as I.H#$ indeed a significant leap. %0-I7s life insurance
business has achie'ed a groth rate of 1768. The total ).+ >)nnualiEed .remium
+3ui'alent? is at R$. =?7.6&rore$.
@%irla 0un -ife Insurance continues its momentum into the ne fiscal year ith an
increased market share of @.!F# for 1! 5; D""@("H >amongst pri'ate life
insurance players? and a groth rate of !HI#. The first 3uarter 5; D""@("H has
seen a ramp up on account of our e,pansion in distribution netork ith <""
branches nationally as on 8uly D""@$ our inno'ati'e product suite and superior
3uartile fund performance$ resulting in the present high groth rate and market
share4A $aid 2r. Jikram 2ehmi$ .resident * C+O$ and %irla 0un -ife Insurance
.RODUCT0
.rotection .olicies6
o %irla 0un -ife Term .lan
o .remium %ack Term .lan
0a'ings %ased .olicies6
o %irla 0un life Insurance 0aral 8ee'an
o %irla 0un -ife Insurance 4old(.lus
o 0upreme -ife
o Dream .lan
o Classic -ife .remium
o 0imply -ife
o .rime -ife .remium
o .rime -ife
o -ife Companion
o 5le,i Cash 5lo
o 5le,i 0a'e .lus
o 5le,i -ife -ine
o 0ingle .remium %ond
Retirement 0olutions6
o 5le,i secure -ife Retirement .lan II
Child .olicy6
o Children=s Dream .lan
.olicies 5or Rural India6
o %ima 0uraksha 0uper
o %ima Dhan 0anchay
o %ima Na'ach ;o/ana
)ccident .rotection .olicies
o )ccidental Death Rider
o )ccidental Death Dismemberment Rider
o Term Rider
o Critical Illness Rider
o Wai'er .5 .remiums
o Critical Illness .lus Rider
o Critical Illness(Woman Rider
%esides these the 4roup Insurance .roducts by %irla 0un -ife Insurance include
4roup .rotection 0olutions that offers you insurance at affordable prices$ 4roup
0uperannuation and 4ratuity .lans$ 0ingle .remium 4roup Term .lan and
4roup Credit 4uard .lan.
0pecial NRI Insurance .olicies on offer by %irla 0un life includeB
o .rime -ife .remium
o .rime -ife
o -ife Companion
o 5le,i -ife -ine .lan
o 5le,i 0a'e .lus
o 5le,i Cash 5lo
o Classic -ife .remier
o 0ingle .remium %ond
o 0imply -ife
The current range of products offered by %0-I includes6
5le,i -ife -ine
5le,i Cash 5lo
5le,i 0a'e .lus
5le,i 0ecure -ife
Classic -ife .remier
%irla 0un -ife Term * .remium %ack Term .lan
-ife Companion
.rime -ife * .rime -ife .remier
4old .lus
0imply -ife
0ingle .remium %ond
0upreme -ife
Children7s Dream .lan$ Dream .lan
%irla 0un -ife Insurance 4old(.lus .lan
%irla 0un -ife %ima Na'ach ;o/ana
%irla 0un -ife 4roup .rotection 0olutions
%irla 0un -ife 0ocial De'elopment .lan
%irla 0un -ife 4roup 4ratuity .lan
%irla 0un -ife 4roup 0uperannuation .lan
%irla 0un -ife 4roup Interest Credit .lan
%irla 0un -ife Credit 4uard .lan
C&)NN+-0 O5 DI0TRI%UTION
The distribution channels by %0-I include
 Direst sales force
 )lternate channels
 IT systems
 4roups to ensure con'enience of the potential customers
 &ighly professional dealing
 Corporate go'ernance
Complete transparency has earned %irla 0un -ife Insurance Co -td the trust of its
customers.
.ION++RIN4 )CTIJITI+0
The many pioneering acti'ities by %irla 0unlife include6(
 Unit -inked -ife Insurance 0olutions
 In'estment -inked Insurance .roducts
 Web(%ased Insurance .olicies sale
%irla 0un -ife Insurance Company -imited also offers6(
 25 >2utual 5und?
 International e3uity funds
 Dream plans in insurance products that gi'e you complete transparency
and 'alue(for(money.
)00+T UND+R 2)N)4+2+NT
The total )ssets Under 2anagement >)U2s? of the company are
appro,imately Rs.IF"" corers as of 8une C"$ D""B. %0-I has one of the highest
persistency ratios of HB.B# in terms of premium$ amongst pri'ate life insurers.
Its Outstanding Claims Ratio continues to be the best in the industry at ".I!#.
5UTUR+ 4ROWT& 0TR)T+4I+0 .-)N0
 2umbai 2arch F %irla 0un -ife Insurance hopes to grab a fair share of the
groing insurance market and be among the top three in to years.
 2r Jikram 2ehmi$ .resident and C+O$ said that the accent ould no be
on aggressi'e groth.
 LThe life insurance industry is groing at !"" per cent. We plan to
introduce inno'ati'e products and e,pand our channel reach$L said 2r
2ehmi$ ho took o'er as C+O in December D""<. &e as earlier C+O of
Idea Cellular.
 The company has registered I" per cent groth in ne business premium to
Rs FBH crore in the first !" months of the fiscal$ against Rs I!I crore in the
pre'ious year.
 On loer rate of groth hen compared to other insurance companies$ 2r
2ehmi said6 LTo a certain e,tent it as a conscious decision$ since other
companies do not ha'e many long(term products. %esides$ there has been a
change in the leadership of the company.L
 In terms of maturity 'alue$ most of %irla 0un -ife=s products ha'e a term of
!F years$ said an official.
 The company is e,ploring distribution tie(ups ith other companies in the
%irla group$ 2r. 2ehmi said.
 LWe ill e'aluate all the opportunities e ha'e to build synergies among
the group companies and try to e'ol'e a lo(cost distribution model.L
 Currently$ the company has a tie(up ith Idea Cellular to offer group term
insurance co'er for subscribers aged !@(CF.
 It is in talks ith non(life insurance companies to design a composite micro(
insurance product.
 2r. 2ehmi also said that the company=s a'erage premium per policy as
close to the industry a'erage of Rs D"$""".
 It is likely to be loer in the future as insurers reach out to smaller tons
and loer income groups.
 On breaking e'en$ he said that if the company had to gro$ break(e'en
ould ha'e to be postponed.
 On 2onday the company launched the PChildren=s Dream .lan$= a unit(
linked insurance plan ith guaranteed maturity benefits.
 The plan combines a guaranteed return on sa'ings ith upside potential
based on the performance of the in'estment funds.
 The policy administration charge is customiEed and is deducted on a
monthly basis.
1U+0TION T&)T W+ )0N+D TO %IR-) 0UN -I5+
I2.ORT)NT 1U+0TION
%D2 >%U0IN+00 D+J-O.2+NT 2)N)4+R?
What is %0-I= s in'estment philosophy and stock picking strategyQ
%0-I6( Our primary ob/ecti'e is to pro'ide CON0I0T+NT and long(term returns
to our policyholders. 5or stock picking$ our emphasis is on outstanding track
record of management$ clear 'isibility of groth$ financial strengths and a scalable
business model. We focus on blue(chip companies ith e,cellent track record$
management 'ision and the best degree of corporate go'ernance.
What are the 'arious fund options pro'ided to policyholders by %0-IQ
%0-I6(%0-I has been a pioneer of Unit -inked plans in India. Our product range
on the Indi'idual life and 4roup front largely consists of Unit -inked plans. We
ha'e a range of fund options on our indi'idual and group plans. The e3uity
component in this fund option 'aries from !" # to H" #. We recommend our
policyholders to select their fund options based on their risk tolerance le'el and the
future need of capital. 0ome of the fund options listed belo for Indi'idual life
plans are6
N+; 0TR+N4T&
5inancial +,pertise
)s a /oint 'enture of leading financial ser'ices groups. %IR-) 0UN -I5+ has the
financial e,pertise re3uired to manage your long(term in'estments safely and
efficiently.
Range of 0olutions
They ha'e a range of indi'idual and group solutions$ hich can be easily
customiEed to specific needs. There group solutions ha'e been designed to offer
you complete fle,ibility combined ith a lo charging structure.
0trong +thical Jalues6
5und +3uity
Component
.rotector Up to !" #
%uilder Up to D" #
+nhancer Up to CF #
Creator Up to F" #
2agnifier Up to H" #
%IR-) 0UN -I5+ is an ethical and Cultural OrganiEation. 5alse selling or false
commitment ith the customers is not alloed.
2ost respected .ri'ate Insurance Company.
Comment
India7s insurance sector is likely to clock an unprecedented groth of o'er D"" per
cent by D""H(!". During this period$ pri'ate players ill gro at !I" per cent
oing to their aggressi'e marketing techni3ues as against a groth rate of CF(I"
per cent of state oned insurance companies.
The Chamber e,pects the total insurance business to reach Rs. D""" billion in the
ne,t to years from current le'el of Rs. F"" billion. On account of intense
marketing strategies adopted by pri'ate insurance players$ the market share of
state oned insurance companies like 4IC$ -IC and others ha'e already come
don to B" per cent in the last four(fi'e years from o'er HB per cent and more
intense competition is likely to be itnessed in the near future.
Till 'ery recently$ the insurance sector as largely under the go'ernment.
&oe'er$ many pri'ate multinational firms ha'e no entered the scene$ such as
&D5C$ ICICI$ Nodak 2ahindra and %irla 0unlife.
)nyone interested in this field can either ork in one of the areas of insurance6
life$ general and postal or become an agent or an insurance sur'eyor. In an
insurance company a person can take a$ /ob in.
The skills re3uired to succeed in this field are almost the same as those for any
marketing or sales(related /ob. Q ;ou ha'e to be outspoken$ gentle$ persuasi'e$
calm$ and 'ery good at hate'er responsibility you take. ;ou ha'e to remember
that here you ha'e to persuade people to go for your insurance policy as against
the hordes of such policies a'ailable in the market.
To be eligible for a license$ an insurance sur'eyor must ha'e one of the folloing6
5elloship of associate ship through the e,am held by the Institute of Insurance
0ur'eyors and )d/usters >II0)?$ 2umbaiQ Degree or diploma in architecture from
a recogniEed uni'ersity
With increasing aareness for life insurance$ the customer base * mi, is changing
rapidly. %irla 0un -ife Insurance has been on a high groth path. The report
clearly shos ho %0-I is emerging as the preferred life insurance pro'ider for
higher age brackets. )n increase in customers in the less than ! laky income group
'alidates there efforts in increasing spread and reach)
5or ;TD 8anuary D""@. %0-I7s Ne %usiness .remium stood at Rs.!DFH.D" cores$
a !!B# increase o'er same period last year. The )U2 for %irla 0un -ife
Insurance is in e,cess of Rs.<FH" cores as on DHth 5ebruary$ D""@. Its Outstanding
Claims Ratio is ".I!#. %0-I has a pan(India branch presence of CCH branches
ith o'er !$ ""$""" ad'isors nationally$ out of hich o'er F"" ad'isors are
members of the prestigious 2illion Dollar Round Table >2DRT?. %0-I has
insured o'er D million li'es since inception$ comprising o'er !.F million through its
indi'idual business and the rest through its 4roup business.
%irla 0un -ife Insurance >%0-I? in its B successful years of operations has
contributed significantly to the groth and de'elopment of the life insurance
industry in India. It pioneered the launch of Unit -inked -ife Insurance plans
amongst the pri'ate players in India. It as the first player in the industry to sell
its policies through the %anc assurance route and through the Internet. It as the
first pri'ate sector player to introduce a pure Term plan in the Indian market.
This as supported by sales practices$ hich brought a degree of transparency
that as entirely ne to the market. The process of getting sales illustrations
signed by customers$ offering a free look period on all policies$ hich are no
industry standards ere introduced by %0-I. %eing a customer centric company$
%0-I has in'ested hea'ily in technology to build orld class processing
capabilities. %0-I has co'ered more than D million li'es since inception and its
customer base is spread across more than !F"" tons and cities in India. )ll this
has assisted the company in cementing its place amongst the leaders in the
industry in terms of ne business premium income.