Summer Training Report

On

“A Study on Consumer Buying Behavior towards

Products of Aditya Birla Sun Life Insurance Company
Limited in Lucknow City”

Submitted in partial fulfillment for the award of degree of

BACHELOR OF BUSINESS ADMINISTRATION
(B.B.A.)
Session: 2021-22
AYUSHI MISHRA
Roll No. : 1901029047
Under the guidance of
Dr. RIZWANA ATIQ

Department of Commerce & Business Management

Faculty of Commerce & Management
INTEGRAL UNIVERSITY
DASAULI, KURSI ROAD, LUCKNOW

i
 DECLARATION

I AYUSHI MISHRA Roll No. : 1901029047 from BBA 3rd Year of the
department of Business Management, Integral University, Lucknow hereby
declare that the summer Training Report entitled " A Study on Consumer
Buying Behavior towards Products of Aditya Birla Sun Life Insurance
Company Limited in Lucknow City” is an original work and the same has
not been submitted to any other institution for the award of any other
degree. A presentation of the Summer Training Report was made on the
same topic and the suggestions as approved by the faculty were duly
incorporated.

Ayushi Mishra

ii
 ACKNOWLEDGEMENT
Every work constitutes great deal of assistance and guidance from the
people concerned and this particular project is of no exception.
A project of the nature is surely a result of tremendous support, guidance,
encouragement and help. So here I have made some sincere efforts to thank
some of the eminent persons involved in making this project because
without their encouragement and support this report would have been
non-existent.
I wish to place on record my sincere gratitude to my project guide Dr.
RIZWANA ATIQ, Integral University, Lucknow. I thank him for constructive
help and encouragement throughout the project. Without his support and
guidance taking this would not have been possible.
Also, wish to acknowledge enthusiastic encouragement and support
extended to me by my family members.
I’m also thankful to my friends who provided me their constant support
and assistance.

Ayushi Mishra

iii
 PREFACE

A professional course in (Bachelor of Business Administration. BBA) is

incomplete unless the theoretical knowledge acquired in the classroom is backed
up by practical exposure, as theories alone do not give the perfection to any
discipline. The gap between theory & practiced bridged by the research report,
which has been an integral part of the syllabus.

This has given us an opportunity to work in a truly professional environment

where team work score over individual effort, where there is a helpful atmosphere.
A well planned, properly executed and evaluated training helps a lot in inoculating
good work culture.

I was assigned a project “A Study on Consumer Buying Behavior towards

Products of Aditya Birla Sun Life Insurance Company Limited in Lucknow
City” this report is the result of the work done during the training period.

I have tried my level best to be as a systematic as possible and to avoid any sort of
biases.

iv
 TABLE OF CONTENT

Certificate from the Organization

Declaration ii

Acknowledgement iii

Preface iv

Chapter No. Particulars Page No.

1. Introduction 1

2. Company Profile 41

3. Objectives of the study 59

4. Research Methodology 61

5. Use and Importance of The Study 67

6. Data Analysis & Interpretation 69

7. Findings 88

8. Suggestions 91

9. Conclusion 93

10. Limitations of the study 96

11. Bibliography 98

12. Annexure 100

v
INTRODUCTION

1
 INTRODUCTION

What is insurance?
Insurance is a means of protection from financial loss. It is a form of risk

management, primarily used to hedge against the risk of a contingent or uncertain

loss.

An entity which provides insurance is known as an insurer, insurance company,

insurance carrier or underwriter. A person or entity who buys insurance is known as

an insured or as a policyholder. The insurance transaction involves the insured

assuming a guaranteed and known relatively small loss in the form of payment to the

insurer in exchange for the insurer's promise to compensate the insured in the event of

a covered loss. The loss may or may not be financial, but it must be reducible to

financial terms, and usually involves something in which the insured has an insurable

interest established by ownership, possession, or pre-existing relationship.

The insured receives a contract, called the insurance policy, which details the

conditions and circumstances under which the insurer will compensate the insured.

The amount of money charged by the insurer to the Policyholder for the coverage set

forth in the insurance policy is called the premium. If the insured experiences a loss

which is potentially covered by the insurance policy, the insured submits a claim to

the insurer for processing by a claims adjuster. The insurer may hedge its own risk by

taking out reinsurance, whereby another insurance company agrees to carry some of

the risk, especially if the primary insurer deems the risk too large for it to carry.

2
Types of Insurance

 Life Insurance

 General Insurance

What is Life Insurance?

Life insurance is a contract that offers financial compensation in case of death or

disability. Some life insurance policies even offer financial compensation after

retirement or a certain period of time. Life insurance, thus, helps you secure your

family‘s financial security even in your absence. You either make a lump-sum

payment while purchasing a life insurance policy or make periodic payments to the

3
insurer. These are known as premiums. In exchange, your insurer promises to pay an

assured sum to your family in the event of death, disability or at a set time.

Life insurance can help you support your family even after retirement. Depending on

what it covers, Life insurance can be classified into various types:

Tax Benefits

 Life insurance not only ensures the well-being of your family, it also

brings tax benefits.

 The amount you pay as premium can be deducted from your total taxable

income.

 However, this is subject to a maximum of Rs 1.5 lakh, under Section 80C of

the Income Tax Act.

 The premium amount used for tax deduction should not exceed 10% of the

sum assured.

What is General Insurance?

A general insurance is a contract that offers financial compensation on any

loss other than death. It insures everything apart from life. A general

insurance compensates you for financial loss due to liabilities related to your

house, car, bike, health, travel, etc. The insurance company promises to pay

you a sum assured to cover damages to your vehicle, medical treatments to

cure health problems, losses due to theft or fire, or even financial problems

during travel.

4
Simply put, a general insurance offers financial protection for all your assets

against loss, damage, theft, and other liabilities. It is different from life

insurance.

What are the types of General Insurance available? /

What all can be insured?

You can get almost anything and everything insured. But there are five key types

available:

1. Health Insurance

2. Motor Insurance

3. Travel Insurance

4. Home Insurance

5. Fire Insurance

Health Insurance

Reimburses the amount you pay towards the treatment of any injury or illness.

It usually covers:

 Hospitalisation

 The treatment of critical illnesses

 Medical bills prior to or post hospitalisation

 This type of general insurance covers the cost of medical care. It pays for or

Day care procedures like Cataract operations

You can also opt for add-on benefits like:

5
  Maternity cover: Your health insurance covers you for the costs related to

childbirth. This includes pre-delivery check-ups, hospitalisation during

delivery, and post-natal care.

 Pre-existing diseases cover: Your health insurance takes care of the treatment

of diseases you may have before buying the health insurance policy.

 Accident cover: Your health insurance can pay for the medical treatment of

injuries caused due to accidents and mishaps.

Your health insurance can also help you save tax. Your premium payment can reduce

your taxable income.

Motor Insurance

Motor insurance is for your car or bike what health insurance is for your health.

It is a general insurance cover that offers financial protection to your vehicles from

loss due to accidents, damage, theft, fire or natural calamities

You can also get motor insurance for your commercial vehicles.

In India, you cannot drive or ride without motor insurance.

Let‘s look at the two key types:

1. Car Insurance

It‘s precious—your car. You paid lakhs of rupees to buy that beauty. Even a single

scratch can be painful, forget about bigger damages.

Car insurance can reduce this pain for a few thousand rupees.

How it works:

6
What the insurer will pay for depends on the type of car insurance plan you purchase

2. Two-wheeler Insurance

This is your bike‘s guardian angel. It‘s similar to Car insurance.

You cannot ride a bike or scooter in India without insurance.

How it works:

As with car insurance, what the insurer will pay depends on the type of insurance and

what it covers.

Travel insurance

Travel insurance compensates you or pays for any financial liabilities arising out of

medical and non-medical emergencies during your travel abroad or within the country.

7
What all does travel insurance usually covers?

 Loss of baggage

 Emergency medical expenses

 Loss of passport

 Hijacking

 Delayed flights

 Accidental death

Home Insurance

Home insurance is a cover that pays or compensates you for damage to your homedue

to natural calamities, man-made disasters or other threats.

It covers liabilities due to fire, burglary, theft, flood, earthquakes, and sabotage. It not

only offers financial protection to your home, but also takes care of the valuables

inside the property.

Fire Insurance

Fire insurance pays or compensates for the damages caused to your property or goods

due to fire.

It covers the replacement, reconstruction or repair expenses of the insured property as

well as the surrounding structures.

It also covers the damages caused to a third-party property due to fire.

In addition to these, it takes care of the expenses of those whose livelihood has been

affected due to fire.

8
How to buy Insurance?

You can buy in 4 simple steps:

Step 1:

KNOW WHAT YOU NEED

 Understand the covers you need based on personal requirements.

 Get all the important details. For example, in the case of motor insurance get

details such as the manufacturing date of the vehicle, engine specifications,

etc. For health insurance, check whether you need insurance for self or the

entire family.

 This initial assessment will help you get an idea about the coverage that you

need

Step 2:

CHECK OPTIONS AVAILABLE

 Compare the benefits offered.

 Check the add-ons offered

 Don‘t forget to read the exclusions

 What‘s the sum assured?

 Are there any extra services offered

Step 3:

PICK THE RIGHT PLAN

 Select the plan that best suits your requirements.

 Reach out to the company offering the plan.

Step 4:

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PAY PREMIUM

 Fill in the application and pay the premium.

 You can do it online on the insurer‘s website.

How much does insurance cost?

Your insurance costs depend on your premium amount. This premium

amount depends on several factors that differ from insurance to

insurance. Here’s a look:

Life Insurance

 Age

 Health (past and current)

 Your occupation

 The type of coverage/plan

 Your smoking and drinking habits

 The sum assured

Motor/Auto Insurance:

 Make-Model of the vehicle

 The type of coverage/plan

 The value, age of your vehicle

 Your claim history

Travel Insurance

 The sum assured

 The type of coverage/plan

 Age

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 Your health

 The location of travel

Health Insurance

 Your family health history

 The sum assured

 The type of coverage/plan

 Your age and gender

 Your health history

Home Insurance

 The size of your home

 The type of coverage/plan

 The age of your home and the systems installed therein

 The location of your home

 The sum assured

You can also use online calculators to check the premium amount

How to use the insurance money?

You have to make a claim against your insurance policy.

 Give details about the loss you suffered. This differs from insurance to

insurance.

 Submit the bills/proof of damage, loss, hospitalisation, etc.

 The insurance company would verify your claim.

 It will then pay the bill or reimburse you for your loss.

11
Types of Life Insurance

Term Insurance

Besides providing a safety cushion for your loved ones even when you are not around,

the premiums paid on term insurance is exempt from tax under Section 80 C of the IT

Act. Even the claim/maturity amount that you receive on outliving the policy is

exempt under Section 10 (10D). However, smoking habits may affect the premiums

you pay (more reason to quit!).

ULIP

An acronym for Unit-Linked Insurance Plan, ULIPs provide a life cover that protects

your family and lets you invest in the equity market, so you can grow your money.

The best ones to choose are those that include benefits such as fund switching options,

income tax benefits, high returns in the long term, life cover, and loyalty additions.

Note that you, as the investor, will have to bear the risk of the investment.

Child plan

This is a life insurance product designed to save for your child‘s higher education

expenses. In case the parachute doesn‘t open when you skydive, it takes care of your

child‘s education. You can begin by making small investments for a short tenure and

start receiving regular pay-outs for a fixed period, and by the time your child wants to

switch from an engineering to a Doing course, you‘ll have the money already ready.

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Retirement plan

An insurance plan that protects your loved ones in case something unfortunate

happens to you, and covers your retirement plans when you don‘t, what‘s not to love?

Life insurance can be used as a retirement savings vehicle, a tool to supplement other

specific retirement plans to meet your retirement goals, or as an investment option that

offers dual benefits of life cover as well as growing your wealth.

Savings and investments

Life insurance can also be considered a great savings and investment tool, especially

if you have set some definite goals. Endowment plans are good savings and

investment options. Similarly, if you want to improve your financial condition,

investment plans offer good returns as they are linked to the market. Compare various

plans to see which ones offer maximum returns.

Money-back

Instead of getting paid all at once at the end of the term, you have the option of getting

returns in intervals. The frequency and period of pay-outs differ from company to

company and plan to plan. This policy could provide you with money at certain

intervals that can help meet various financial goals (buying a house or car, children‘s

marriage, etc). Plus, it has a low risk element and guaranteed returns.

13
Whole life insurance:
This form of insurance has two components –benefits to the loved ones in case

something untoward happens to you and a savings portion called the cash value,

which grows as interest accumulates. Interestingly, you don‘t have to pay any tax on

investment gains until the funds are withdrawn (also called ‗investment growth on a

tax-deferred basis‘). You can emit more payments than the scheduled premium, which

will help you build your cash value. Further, you can reinvest dividends into the cash

value and earn interest. If you wish, you can make a withdrawal or take a loan on

interest. Withdrawals will not impact the death benefits.

Insurance Sector in India

Insurance industry in India has seen a major growth in the last decade along with an

introduction of a huge number of advanced products. This has led to a tough

competition with a positive and healthy outcome.

Insurance sector in India plays a dynamic role in the wellbeing of its economy. It

substantially increases the opportunities for savings amongst the individuals,

safeguards their future and helps the insurance sector form a massive pool of funds.

With the help of these funds, the insurance sector highly contributes to the capital

markets, thereby increasing large infrastructure developments in India.

Nature of Insurance
Following are the main characteristics of insurance which are applicable to all

types of insurance (life, fire, marine and general insurance).

1. Sharing of Risks - Insurance is a device to share the financial losses which

may occur to individual or his family on the happening of certain events

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2. Co-operative Device – Insurance is a co-operative device to spread the loss

caused by a particular risk over a large caused by a particular risk over a large

number of persons who are exposed to it and who agree to insure themselves

against the risk.

3. Value of Risk – Risk is evaluated at the time of insurance. There are several

methods of valuing the risk. Higher the risks, higher will be premium

4. Payment on Contingency -If the contingency occurs, payment is made; payment

is made only for insured contingency. If there is no contingency, no payment is

made. In life insurance contract, payment is certain because the death or theexpiry

of term will certainly occur. In other insurance contract like fire, marine, the

contingency may or may not occur

5. Amount of Payment of Claim - The amount of payment depends upon the value

of loss occurred due to the particular insured risk. The insurance is there upto that

amount. In life insurance insurer pay a fixed sum on the happening of an event or

within a specified time period.

Example – In fire insurance, if fire occurs and half the property is destroyed,

but the whole property is insured, then payment of claim will be made only for

that half building that is destroyed not the whole amount of insured.

6. Insurance is different from Charity - In charity, there is no consideration but

insurance is not given without premium

7. Large number of Insured Person - Insurance is spreading of loss over a large

number of persons. Larger the number of persons, lower the cost of insurance and

amount of premium and incase lower the number of persons, higher the cost of

insurance and amount of premium.

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8. Insurance is different from Gambling - In gambling, there is no guarantee of

gain, by bidding the person expose himself to risk of losing. Whereas in insurance,

by getting insured his life and property, he protect himself against the risk of loss.

The Indian Insurance Sector

The Indian Insurance Sector is basically divided into two categories – Life Insurance

and Non-life Insurance. The Non-life Insurance sector is also termed as General

Insurance. Both the Life Insurance and the Non-life Insurance is governed by the

IRDAI (Insurance Regulatory and Development Authority of India).

The role of IRDA is to thoroughly monitor the entire insurance sector in India and

also act like a custodian of all the insurance consumer rights. This is the reason all the

insurers have to abide by the rules and regulations of the IRDAI.

The Insurance sector in India consists of total 57 insurance companies. Out of which

24 companies are the life insurance providers and the remaining 33 are non-life

insurers. Out which there are seven public sector companies.

Life insurance companies offer coverage to the life of the individuals, whereas the

non- life insurance companies offer coverage with our day-to-day living like travel,

health, our car and bikes, and home insurance. Not only this, but the non-life

insurance companies provide coverage for our industrial equipment‘s as well. Crop

insurance for our farmers, gadget insurance for mobiles, pet insurance etc. are some

more insurance products being made available by the general insurance companies in

India.

16
The life insurance companies have gained an investment prospectus in the recent

times with an idea of providing insurance along with a growth of your savings. But,

the general insurance companies remain reluctant to offer pure risk cover to the

individuals.

The Past of Insurance Sector In India

In the history of the Indian insurance sector, a decade back LIC was the only life

insurance provider. Other public sector companies like the National Insurance, United

India Insurance, Oriental Insurance and New India Assurance provided non-life

insurance or say general insurance in India.

However, with the introduction of new private sector companies, the insurance sector

in India gained a momentum in the year 2000. Currently, 24 life insurance companies

and 30 non-life insurance companies have been aggressive enough to rule the

insurance sector in India.

But, there are yet many more insurers who are waiting for IRDAI approvals to start

both life insurance and non-life insurance sectors in India.

The Present of Insurance Sector in India

So far as the industry goes, LIC, New India, National Insurance, United insurance and

Oriental are the only government ruled entity that stands high both in the market share

as well as their contribution to the Insurance sector in India. There are two specialized

insurers – Agriculture Insurance Company Ltd catering to Crop Insurance and Export

17
Credit Guarantee of India catering to Credit Insurance. Whereas, others are the private

insurers (both life and general) who have done a joint venture with foreign insurance

companies to start their insurance businesses in India.

Life Insurance Companies:

Private Sector Companies

 AEGON Life Insurance Co. Ltd.

 Aviva Life Insurance Co. India Ltd.

 Bajaj Allianz Life Insurance Co. Ltd.

 Bharat AXA Life Insurance Co. Ltd.

 Birla Sun Life Insurance Co. Ltd.

 Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.

 DHFL Pramerica Life Insurance Co. Ltd.

 Edelweiss Tokio Life Insurance Co. Ltd

 Exide Life Insurance Co. Ltd.

 Future Generali India Life Insurance Co. Ltd.

 HDFC Standard Life Insurance Co. Ltd.

 ICICI Prudential Life Insurance Co. Ltd.

 IDBI Federal Life Insurance Co. Ltd.

 India First Life Insurance Co. Ltd

 Kodak Mahindra Old Mutual Life Insurance Ltd.

 Max Life Insurance Co. Ltd.

 PNB MetLife India Insurance Co. Ltd.

 Reliance Life Insurance Co. Ltd.

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  Sahara India Life Insurance Co. Ltd.

 SBI Life Insurance Co. Ltd.

 Shriram Life Insurance Co. Ltd.

 Star Union Dai-Ichi Life Insurance Co. Ltd.

 Tata AIA Life Insurance Co. Ltd.

General Insurance Companies:

Private Sector Companies

 Aditya Birla Health Insurance Co. Ltd.

 Bajaj Allianz General Insurance Co. Ltd.

 Bharti AXA General Insurance Co.Ltd.

 Cholamandalam General Insurance Co. Ltd.

 Future Generali India Insurance Co.Ltd.

 HDFC ERGO General Insurance Co. Ltd.

 ICICI Lombard General Insurance Co. Ltd.

 IFFCO-Tokio General Insurance Co. Ltd.

 Kotak General Insurance Co. Ltd.

 L&T General Insurance Co. Ltd.

 Liberty Videocon General Insurance Co. Ltd.

 Magma HDI General Insurance Co. Ltd.

 Raheja QBE General Insurance Co. Ltd.

 Reliance General Insurance Co. Ltd.

 Royal Sundaram Alliance Insurance Co. Ltd

 SBI General Insurance Co. Ltd.

 Shriram General Insurance Co. Ltd.

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  TATA AIG General Insurance Co. Ltd.

 Universal Sompo General Insurance Co.Ltd.

Health Insurance Companies

 Apollo Munich Health Insurance Co.Ltd.

 Star Health Allied Insurance Co. Ltd.

 Max Bupa Health Insurance Co. Ltd.

 Religare Health Insurance Co. Ltd.

 Cigna TTK Health Insurance Co. Ltd.

This collaboration with the foreign markets has made the Insurance Sector in India

only grow tremendously with a high current market share. India allowed private

companies in insurance sector in 2000, setting a limit on FDI to 26%, which was

increased to 49% in 2014. IRDAI states – Insurance Laws (Amendment) Act, 2015

provides for enhancement of the Foreign Investment Cap in an Indian Insurance

Company from 26% to an Explicitly Composite Limit of 49% with the safeguard of

Indian Ownership and Control.

Private insurers like HDFC, ICICI and SBI have been some tough competitors for

providing life as well as non-life products to the insurance sector in India.

The Future of Insurance Sector in India

Though LIC continues to dominate the Insurance sector in India, the introduction of

the new private insurers will see a vibrant expansion and growth of both life and non-

life sectors in 2017. The demands for new insurance policies with pocket-friendly

premiums are sky high. Since the domestic economy cannot grow drastically, the

insurance sector in India is controlled for a strong growth.

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With the increase in income and exponential growth of purchasing power as well as

household savings, the insurance sector in India would introduce emerging trends like

product innovation, multi-distribution, better claims management and regulatory

trends in the Indian market.

The government also strives hard to provide insurance to individuals in a below

poverty line by introducing schemes like the

 Pradhan Mantri Suraksha Bima Yojana (PMSBY),

 Rashtriya Swasthya Bima Yojana (RSBY) and

 Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

Introduction of these schemes would help the lower and lower-middle income

categories to utilize the new policies with lower premiums in India.

With several regulatory changes in the insurance sector in India, the future looks

pretty awesome and promising for the life insurance industry. This would further lead

to a change in the way insurers take care of the business and engage proactively with

its genuine buyers.

Some demographic factors like the growing insurance awareness of the insurance,

retirement planning, growing middle class and young insurable crowd will

substantially increase the growth of the Insurance sector in India.

Insurance in India: The journey from origin to evolution

In India, life insurance has been an integral part of most people's lives. For some, it is

an investment avenue while others see it as a safety net to provide for their family's

future in case of untimely death.

In India, life insurance has been an integral part of most people's lives. For some, it is

an investment avenue while others see it as a safety net to provide for their family's

21
future in case of untimely death. In urban areas, life insurance is almost considered a

given, with people taking multiple policies at various stages of their life. Initial steps

1818 saw the advent of life insurance business in India with the establishment of the

Oriental Life Insurance Company in Calcutta.

This Company however failed in 1834. In 1829, the Madras Equitable had begun

transacting life insurance business in the Madras Presidency. 1870 saw the enactment

of the British Insurance Act and in the last three decades of the nineteenth century, the

Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in

the Bombay Residency. This era, however, was dominated by foreign insurance

offices which did good business in India, namely Albert Life Assurance, Royal

Insurance, Liverpool and London Globe Insurance and the Indian offices were up for

hard competition from the foreign companies.

First regulation In 1914, the Government of India started publishing returns of

Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was

the first statutory measure to regulate life business. In 1928, the Indian Insurance

Companies Act was enacted to enable the Government to collect statistical

information about both life and non-life business transacted in India by Indian and

foreign insurers including provident insurance societies. In 1938, with a view to

protecting the interest of the Insurance public, the earlier legislation was consolidated

and amended by the Insurance Act, 1938 with comprehensive provisions for effective

control over the activities of insurers.

Nationalization happens The Insurance Amendment Act of 1950 abolished Principal

Agencies. However, there were a large number of insurance companies and the level

of competition was high. There were also allegations of unfair trade practices. The

Government of India, therefore, decided to nationalize insurance business.

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Sector reopened An Ordinance was issued on 19th January, 1956 nationalizing the

Life Insurance sector and Life Insurance Corporation came into existence in the same

year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident

societies-245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s

when the Insurance sector was reopened to the private sector.

This millennium has seen insurance come a full circle in a journey extending to nearly

200 years. The process of re-opening of the sector had begun in the early 1990s and

the last decade and more has seen it been opened up substantially. In 1993, the

Government set up a committee under the chairmanship of RN Malhotra, former

Governor of RBI, to propose recommendations for reforms in the insurance sector.

Basic recommendations The objective was to complement the reforms initiated in

the financial sector. The committee submitted its report in 1994 wherein, among other

things, it recommended that the private sector be permitted to enter the insurance

industry. They stated that foreign companies should be allowed to enter by floating

Indian companies, preferably a joint venture with Indian partners.

IRDA constituted Following the recommendations of the Malhotra Committee

report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was

constituted as an autonomous body to regulate and develop the insurance industry.

The IRDA was incorporated as a statutory body in April, 2000. The key objectives of

the IRDA include promotion of competition so as to enhance customer satisfaction

through increased consumer choice and lower premiums, while ensuring the financial

security of the insurance market.

The role of IRDAIRDA opened up the market in August 2000 with the invitation for

application for registrations. Foreign companies were allowed ownership of up to

26%. The Authority has the power to frame regulations under Section 114A of the

23
Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging

from registration of companies for carrying on insurance business to protection of

policyholders' interests. Today there are 23 life insurance companies operating in the

country.

Growth rate The insurance sector is a colossal one and is growing at a speedy rate of

15-20%. Together with banking services, insurance services add about 7% to the

country's GDP. A well-developed and evolved insurance sector is a boon for

economic development as it provides long- term funds for infrastructure development

while strengthening risk taking ability of the country.

What are the Function of Insurance

The function of insurance may vary with its nature and types. It means the functions

of fire or marine insurance may differ from that of life insurance etc. Today I am

going to discuss some common function of the insurance.

24
Providing financial losses

Insurance provides assurance for the compensation of pre-decided and accidental

financial losses against the premium paid by the insured.

Reducing financial losses

Human beings are exposed to different kinds of risks in their personal as well as

business life. Such risks may cause great financial loss. Insurance acts as a mechanism

to reduce or eliminate the financial loss due to various risks by forecasting the chances

of such happenings and suggesting for their controlling measures.

Mobilization of capital

Insurance accumulates fund in terms of insurance premium from the parties willing to

get secured from the financial losses. Compensation is made to the insured who are

actually suffered and productive sectors. Hence, insurance accumulates fun and

mobilized into different areas.

Maintaining Financial stability

Risks and uncertainties create instability in the financial sector. Insurance companies

help to maintain financial stability by assuring for the compensation of the losses

caused by various risks and thus, promotes the performance efficiency, which leads to

financial

stability.

What are the Advantages of Insurance

Assures for financial compensation

Insurance provides financial security to the insured. It gives guarantee of

compensation against large financial losses in return of small premium.

25
Reduction of risks

Human beings are exposed to different kinds of financial risks, which may cause large

financial losses. It is not possible to eliminate the risks but it can be forecasted and

reduced by applying some precautionary measures. Insurance helps in reducing risks

by suggesting for pre caution measures on one side and by sharing the losses to a

group of person who has agreed to join the common pool.

Encouragement to saving and investment

In the insurance agreement, the insured has to pay a certain regular premium to the

insurer in return to the compensation of the probable future loss or compensation at

old age or compensation after his/her death. Insurance is thus a method of collecting

saving from the parties willing to get secured from the financial risks. Hence, it

encourages persons to make regular savings.

Basis of credit

An insured can easily get loan by pledging insurance policy as a security from the

insurance company itself. Besides, financial institutions grant credit facilities on the

pledge of the properties which are being insured.

Maintains economic stability

Financial risks and uncertainties pushes the entire economy into instability. It is a very

bad sign to total business and social sectors. Insurance assures the compensation ofthe

financial losses caused by the specified future events and considerably helps in

maintaining economic stability.

Promotes business activities

Business sector is more risky sector. The chances of fire in the go down, loss of stocks

by theft, explosion in the ship, train or plane etc. are more frequent in this sector.

26
Insurance takes away these risks and promotes and develops business activities in

consideration to a nominal charge i.e premium.

Provides employment opportunities

As insurance has become business in the modern day business world, hundreds of

entrepreneurs and thousands of employees have been engaging in this line. Hence, by

establishing and developing insurance companies, it has provided employment

opportunities to thousands of people as per their qualification and calibre.

Reasons for claim rejection

Your insurer can reject a life insurance claim on grounds of:

Misrepresentation of actual information

Non-disclosure of complete information

Fraud

Apart from these, there are other grounds on which insurance companies can reject a

claim you make. Here are some of them

Policy does not cover specific situation

Assuming you are 25 years old and take a whole life plan; you will receive a lump

sum payment at the age of 45. However, if you make a claim at 40 because of an

emergency, your claim will not be entertained.

27
Information incorrect or misleading

Every policy has an ‗in contestability period‘, during which the insurer can dispute

information provided in the application. For instance, your insurance company can

refuse the claim if you said you were a non-smoker, but you turn out to be one.

Disability and critical illness

Life insurance policies do not generally cover disability and critical illnesses, unless

you buy disability and critical illness riders as well.

Minor beneficiary

The money will be paid only to a trustee designated by you (the insured) and not to

the spouse or child (the beneficiary) if he or she is under 18 years.

Insured lives beyond term expiry

Some policies are only valid until the insured turns a certain age or for a certain

number of years. The policy becomes invalid if you outlive this tenure.

Suicide

Although suicide cases qualify for insurance pay outs, there is a catch. The insurance

sector regulator, IRDAI, has made certain changes in the suicide clause with effect

from January 1, 2014. Policies issued prior to this date will not be entertained under

the old clause. As for those policies that have been taken out later, we‘ll come to that

a little later.

28
Death in a war

This is a common exclusion. Many policies do not cover accidental death in a war or

during active military service.

Stay in a restricted country

People visiting designated ‗restricted countries‘ or are vulnerable to violence, say

Syria, beware: anything untoward in such places are usually not covered.

Death in a high-risk activity

Sure, you have only one life to live and you should make the most of it. But partaking

in extreme sports like skydiving is not generally covered by an insurance policy. In

fact, an insurer can reject a death claim if you were not wearing a helmet while riding

a motorcycle (yup, it is a high-risk activity).

Mismatching policy

You cannot supersede the contract signed in a policy. So, if you have your wife‘s

name on the insurance policy as the beneficiary and you get divorced and remarry,

your first wife will be entitled to the benefits in case something happens to you. You

can avoid such a situation by updating the beneficiary name in your policy.

29
Unpaid premium

This is the most common ground for pay out refusal. If the premium is not paid within

30 days after the due date, the policy is considered lapsed.

What is not covered under life insurance?

Certain accidental deaths

Wondering why this is mentioned here when term plans provide coverage in case of

death due to accidents? It is true that many term life plans have additional accidental

death benefit riders that assure extra pay out on top of the basic sum assured in case of

accidental deaths. However, there are exceptions

Insurance companies will not entertain claims if you, the insured person, meet with an

accident while driving or walking down a busy street and are under the influence of

alcohol or any narcotics

Loss of life while driving during a criminal act will also lead to claim rejection

Life insurance plans exclude anything untoward that may happen during participation

in adventure sports such as skydiving, parachuting, rafting, bungee-jumping

Suicide

As mentioned above, according to IRDAI notification effective January 1, 2014, the

beneficiary is eligible to receive 80% of the premium that has already been paid if the

30
insured commits suicide within 12 months of policy commencement – this is for non-

linked policies. For linked plans, the pay-out is 100%.

However, the policy will be considered terminated if the insured commits suicide after

completion of a year of the policy

Bear in mind that some life insurance companies may not provide coverage for

suicidal deaths. So, study the terms and conditions carefully, and understand the

inclusionsand exclusions before making your purchase.

Self-Inflicted injuries

Self-harming even with no intention of suicide gives the insurance company grounds

to reject claims made by the beneficiary.

STD

Insurance companies usually do not accept claims if the deceased was afflicted by

sexually transmitted diseases (STD) such as HIV/AIDS.

Intoxication

Insurance companies will not release death benefits for the beneficiary if the insured

person dies from an overdose of drugs or alcohol. It is quite common for insurers to

put pay outs on hold until the autopsy report on unnatural deaths is released.

31
Murder

What happens if the insured person is murdered by the beneficiary? If investigations

reveal that the nominee/beneficiary was involved in the crime, the insurance company

will put the claim on hold– if not outright reject it– till the accused is cleared of the

charges.

Natural calamity

Different regions in India are vulnerable to different natural calamities such as floods,

earthquakes, landslides, typhoons, and even tsunamis. If an accident happened due to

any such natural calamity, the insurance company will not issue any death benefits.

However, you can avoid this by adding a rider to the base plan to take care of the

beneficiary in case of loss of life from such a calamity.

32
INCOME TAX BENEFIT ON LIFE INSURANCE:

80C AND 10D

Life insurance is one of the primary and essential requirements of ensuring a

financially balanced and comfortable life for your loved ones. The capital benefits that

come with life insurance help your family build a safe and safeguarded future, even in

your

absence. Moreover, under Section 80C and 10D of the Income Tax Act, there are

income tax benefits on life insurance. Under section 80C, premiums that you pay

towards a life insurance policy qualify for a deduction up to ₹1.5 lakh, while Section

10(10D) makes income on maturity tax-free if the premium is not more than 10% of

the sum assured or the sum assured is at least 10 times the premium.

But if the sum assured is less than 10 times the premium—for instance you pay Rs.1

lakh as premium for a sum assured of Rs.5 lakh—you will get a deduction on the

premium up to 10% of the sum assured. In the example, your deduction will be

Rs.50,000 and not Rs.1 lakh.

Also, in case of death, the sum assured that‘s paid to the nominee continues to be tax-

free. But, on maturity, since the policy doesn‘t meet the qualifying criterion for

income

tax benefit, the income will be taxed at the marginal tax rate.

As per Section 80C, the premium paid towards life insurance policies up to the

maximum limit of Rs.1,50,000 is eligible for tax deduction and deductions are

applicable if the amount of premium paid in a financial year is 20% of the sum

assured amount of the policy. This is related only to the life insurance policies that

have been issued before 31st March 2012.

For policies which were issued after 1st April 2012, the tax deductions are applicable

33
of the amount of premium paid in a financial year is 10% of the sum assured.

34
Under section 80C(5) if the insurance policy holder voluntarily surrenders his policy or

in case the policy is terminated before 2 years from the date of commencement of

policy, then the insured will not receive any benefits on the premium paid, offered

under section 80C of Income Tax Act.

Under Section 10(10D) of Income Tax Act, 196, the sum assured amount plus bonus

(if any) paid on surrender or maturity of the policy or in case of death of the insured in

entirely tax-free for the receiver. Some of the important points of section 10(10D) of

tax deductions are:

Any amount payable to the insured under life insurance policies is applicable for tax

deduction. The amount payable can maturity benefits and death benefits, allocated

sum by way of bonus, surrender value and the survival benefit. Section 10(10D)

deduction is also applicable to gains and proceeds from a ULIP and the benefit on

maturity proceeds is offered when the premium paid towards the policy is not more

than 10% of the sum assured amount.

Any maturity amount of life insurance policy or bonus amount received by the

beneficiary of the policy in case of demise of the insured is totally exempted from tax

deduction.

In fact, in order to ensure compliance, if the maturity proceeds exceed Rs.1 lakh, then

a tax deduction at source (TDS) will apply and the insurer will deduct 1% as TDS

(Tax

Deducted at Source) if the PAN of the policyholder is available.

35
Terms of Section 10(10D) of the Income Tax Act, 1961

Tax benefits under Section 10(10D) of the Income Tax Act, 1961 can be claimed only

on the following terms and conditions:

 Tax deductions under Section 10(10D) of the Income Tax Act, 1961, is

applicable on any sum received under a life insurance plan i.e. Death Benefit

or maturity Benefit or Bonus received from life insurance policies

 Payout that is not eligible for tax deductions under Keyman Insurance Policy

are eligible for deductions under this section

 Premium paid during any particular year during the policy term cannot be

more than 20% of the sum assured for life insurance policies bought between

1st April 2003 and 31st March, 2012

 For policies purchased after 1st April 2012, the premium payment cannot be

more than 10% of the sum assured

 The insurance premium for any year during the policy tenure should not

exceed 15% of the sum assured. Besides, it also should not have been

purchased on or after 1st April 2013. Also, the insurance policy must be for

the life of any individual who meets the following criteria:

o Disabled or severely disability individual, as specified under Section

80U of the Income Tax Act, 1961

o Suffering from a disease as specified under Section 80DDB of the

Income Tax Act, 196

36
INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY

The Insurance Regulatory and Development Authority of India (IRDAI) is an

autonomous, statutory body tasked with regulating and promoting the insurance and

re-insurance industries in India. It was constituted by the Insurance Regulatory and

Development Authority Act, 1999, an Act of Parliament passed by the India. The

agency's headquarters are in Hyderabad, Telangana, where it moved from Delhi in

2001.

37
IRDAI is a 10-member body including the chairman, five full-time and four part-time

members appointed by the government of India.

FUNCTIONS:

The functions of the IRDAI are defined in Section 14 of the IRDAI Act, 1999, and

include:

 Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations

 Protecting policyholder interests

 Specifying qualifications, the code of conduct and training for intermediaries and

agents

 Specifying the code of conduct for surveyors and loss assessors

 Promoting efficiency in the conduct of insurance businesses

 Promoting and regulating professional organisations connected with the insurance

and re-insurance industry

 Levying fees and other charges

 Inspecting and investigating insurers, intermediaries and other relevant

organisations

 Regulating rates, advantages, terms and conditions which may be offered by

insurers not covered by the Tariff Advisory Committee under section 64U of the

Insurance Act, 1938 (4 of 1938)

 Specifying how books should be kept

 Regulating company investment of funds

 Regulating a margin of solvency

38
 Adjudicating disputes between insurers and intermediaries or insurance

intermediaries

 Supervising the Tariff Advisory Committee

 Specifying the percentage of premium income to finance schemes for promoting

and regulating professional organisations

 Specifying the percentage of life- and general-insurance business undertaken in

the rural or social sector

 Specifying the form and the manner in which books of accounts shall be

maintained, and statement of accounts shall be rendered by insurers and other

insurer intermediaries.

39
Market analysis and buyer behaviour

A market analysis is an assessment, which allows you to determine how suitable a

particular market is for your industry. You can use market analysis to evaluate your

current market, or look at new markets.

Whether you are a start-up, looking to expand, or re-evaluating your current market, a

market analysis helps you to identify the attractiveness of a market. It also detects

current and future risks of operating in that location.

Market analysis provides you with a holistic or well-rounded picture of the markets

you are interested in operating in. The components of the analysis include several

evaluation tools, including a discussion of your industry and its outlook in the market.

It also analyzes the target market, conducts a competitive analysis, and identifies

cultural and legal regulations.

Conducting Market Analysis

When you conduct a market analysis, you are going to look at several characteristics

of the market you are interested in entering. You are also going to determine how

suitable your industry is for the market.

Industry Description and Outlook

Think back to the coffee shop. When preparing to expand, you will want to conduct an

in-depth analysis of your industry and consider what the future of your industry looks

like. For example, what does the coffee shop industry look like and how large is the

coffee industry. You may also want to look at the growth rate of the industry, and the

anticipated rate of growth over the next few years.

In short, the industry description and outlook takes into consideration:

 Definition of your industry (what do you offer)

40
  Size of your industry

 Rate of growth

 Potential for growth

 Trends in the industry

 Sustainability of your industry

These measures provide a broad overview of your industry and its potential forgrowth

and profitability.

Target Market

Once you have a broad picture of what your industry looks like and what its

capabilities are, you want to identify your target market. The target market is the

specific population you want to market your products to.

 Who do you want to sell to?

 What age group do you want to sell to?

 What is the general level of income of your target market?

 Where does your target market live?

You want to dig in to specifics of which the population you are targeting is, and what

they desire out of the products you are offering.

 Do your customers like chocolate mochas, or do they prefer black coffee?

 Do they live fast-paced lives, or do they have 20 or 30 minutes each morning

to enjoy their coffee?

 Where does your target market live?

 How large is their population?

When conducting a target market analysis, you will want to find out as many specific

details as you can about your target market.

41
COMPANY PROFILE

42
 COMPANY PROFILE

Aditya Birla Sun Life Insurance, an Aditya Birla Capital Company

Aditya Birla Sun Life Insurance Company Limited (ABSLI) is a subsidiary of Aditya

Birla Capital Ltd (ABCL) is one of the leading private sector life insurance companies

in India. ABSLI was incorporated on August 4th, 2000 and commenced operations on

January 17th, 2001. ABSLI is ABSLI is a 51:49 a joint venture between the Aditya

Birla Group and Sun Life Financial Inc., a leading international financial services

organization in Canada.

Formerly known as Birla Sun Life Insurance Company Limited, ABSLI is one of

India's leading life insurance companies offering a range of products across the

customer's life cycle, including children future plans, wealth protection plans,

retirement and pension solutions, health plans, traditional term plans and Unit Linked

Insurance Plans ("ULIPs").

As of December 31st, 2018, total AUM of ABSLI stood at Rs. 389,548 million.

ABSLI recorded a gross premium income of Rs. 18,599 million in Q3 FY 2018-19

and registering a y-o-y growth of 68% in Individual First Year Premium and currently

43
ranked 7th in Individual Business (Individual FYP adjusted for 10% single premium)

(Source: IRDAI reported Financials). ABSLI has a nation-wide distribution presence

through 425 branches, 9 banc assurance partners, 6 distribution channels, over 83,000

direct selling agents, other Corporate Agents and Brokers and through its website. The

company has over 10,000 employees and more than 16 lac active customers.

The Company offers a complete range of protection solutions to help secure your

family's future and provide financial support for your child's education, wealth with

protection solutions, health and wellness solutions, retirement solutions and savings

with protection solutions to help you stay financially secure in the future with small

disciplined savings at regular intervals. ABSLI puts people's need first and aims to

protect what is dear to the customer, with assurance. While, Life Insurance cannot

prevent risk, it can compensate financial losses arising from risk.

Aditya Birla Capital Limited (ABCL) is the financial services platform of the Aditya

Birla Group. With a strong presence across the life insurance, asset management,

private equity, corporate lending, structured finance, project finance, generalinsurance

broking, wealth management, equity, currency and commodity broking, online

personal finance management, housing finance, pension fund management and health

insurance business, ABCL is committed to serving the end-to-end financial services

needs of its retail and corporate customers. Anchored by more than 17,000 employees,

ABCL has a nationwide reach and more than 2, 00,000 agents / channel partners.

Corporate Profile

Aditya Birla Sun Life Insurance Company Limited (ABSLI) is one of the leading

private sector life insurance companies in India. A subsidiary of Aditya Birla Capital

Ltd, it is a joint venture between the Aditya Birla Group of India and the Sun Life

44
Financial Inc. of Canada. The company has contributed significantly towards the

growth and development of the life insurance sector in India and has set a benchmark

for its competitors. The company was the first to introduce the concept of free-look

period, even before the Insurance Regulatory and Development Authority (IRDA)

made it mandatory.

In India, the company enjoys the trust of over 2.5 million customers.

ABSLI offers a complete range of protection solutions to help secure your family's

future and ABSLI‘s various innovative insurance plans cater to provide financial

support for your child's education, wealth with protection solutions, health and

wellness solutions, retirement solutions and savings with protection solutions, to help

you stay financially secure in the future with an additional provision of small

disciplined savings at regular intervals. Note: The Company was formerly known as

Birla Sun Life Insurance Company Limited (BSLI).

Highlights of Aditya Birla Sun Life Insurance

 ABSLI pioneered the launch of Unit Linked Insurance Plans (ULIPS).

 ABSIL has a policy of disclosing their portfolio on a monthly basis toestablish

its credibility and add additional transparency.

 Aditya Birla Sun Life ranks among the top seven private sector life insurance

companies in India and was conferred with ‗Good Corporate Citizen Award‘

for the year 2009-10 in Mumbai under the Banking and Financial Institutions

category.

 ABSLI recorded a gross premium income of INR. 24331 million in H1 FY

2017-18.

 The company registered a year on year (y-o-y) growth of 21% in First Year

Premium and posted a net profit of INR. 70 Crore in H1 FY 2017-2018.

45
  ABSLI has a nation-wide distribution presence through 433 branches, 6 banc

assurance partners, 7 distribution channels, over 80,000 direct selling and

corporate agents, all which can be accessed online as well.

 The company has over 8,000 employees and more than 16 lac active customers.

Benefits of Aditya Birla Sun Life Insurance

o Multiple Plans: Birla Sun Life Insurance offers you a host of life insurance

products - Term Insurance, Endowment policy, ULIP, Money Back Life

Insurance and Whole Life Insurance.

o Flexible Premiums: You can enjoy flexibility in paying premiums by opting

for monthly or annually premium paying option.

o Payouts and Benefits: You can opt for Annual Income or Lump Sum benefit
payout option.

o Tax Benefits: You are entitled to Tax saving benefits under Section 80C,

80CCC, 80CCE, 80D, Sec 3 of 10(10A) and 10(10D) under the Income Tax

Act, 2016.

Products and Services offered by Aditya Birla Sun Life Insurance

Protection Plan

Protection plans, also known as Term Insurance Plans, provide complete financial

protection security and coverage at low premiums. Aditya Birla Sun Life Insurance

Company Limited (ABSLI) offers three types of term insurance plans that safeguard

your family‘s financial future in your absence.

1) ABSLI DigiShield Plan: ABSLI DigiShield Plan is a non-linked non-

participating term insurance plan which you can customize as per your

requirements at an affordable cost. Depending on your requirement, this policy

46
 allows you to choose your sum assured and plan option. Once you choose a

sum assured, the plan option determines the enhancements to your chosen

lifecover over the course of your policy.

Key features of this plan include:

 Complete financial protection at an affordable cost

 Two plan options to suit your protection needs

 Option to enhance coverage at different stages of your life

 Option to cover your spouse under the same policy

 Inbuilt Terminal Illness Benefit with flexible premium paying terms

 Multiple options to receive death benefit

 Additional rider benefit options

The eligibility for this policy application is between 18-65 years of age while the

policy term is between 5-40 years. The minimum sum assured is INR. 30, 00,000 with

no such limit for the maximum sum assured.

2) ABSLI Income Shield Plan: A non-linked non-participating term insurance

plan, the ABSLI Income Shield Plan especially caters to meet the requirement

of salaried professional and entrepreneurs. In case of death of the insured, it

ensures that the family continues to earn the same monthly salary or income

necessary to enjoy the same lifestyle as before.

Key features of this plan include:

 Complete financial protection at an affordable cost

 4 plan options to suit your protection needs

 EVA benefit - a benefit exclusive for females

 Flexible Premium Paying Terms & Income Benefit Term

47
  Option to enhance your insurance pan with appropriate rider benefits

The eligibility for this policy application is between 18-50 years of age while the

policy term and income benefit term is between 10-20 years. The minimum sum

assured is INR. 5, 00,000 with no such limit for the maximum sum assured.

3) ABSLI Life Shield Plan: The Aditya Birla Sun Life Insurance Life Shield

Plan offers you the flexibility to make a combination from amongst 8 different

plan options as per your family's needs. It focuses heavily on customization as

it is based on the fact that every family is different and so are their protection

needs.

48
Key features of this plan include:

 Multiple options to suit your family‘s different protection needs

 Option to enhance coverage at key milestones of your life

 Option to cover your spouse under the same policy

 Return of premium option and multiple options to receive death benefit

 Inbuilt Terminal Illness Benefit

 Additional rider benefit options

The eligibility for this policy application is between 18-65 years of age while the

policy term is for a maximum of 50 years and can be availed in options of 1 | 2 | 3 | 4 |

5 | 6 - 10 years or 7 | 8 or 20 years. The minimum sum assured is INR. 25, 00,000 with

no such limit for the maximum sum assured.

Saving Plan

ABSLI savings with Protection Plans offers you the chance to save money in small

amounts, with the added advantages of a large life cover and tax free returns.

1) ABSLI Secure plus Plan: This plan offers you a backup income opportunity

coupled with flexibility to choose the amount you wish to pay every year and

the Income Benefits. The options include:

 If you want to receive Income benefit equal to 100% to 600% of Annual

Premium for 6 years

 If you want to receive Income benefit equal to 200% of Annual Premium for

12 years.

The minimum sum insured is INR. 5, 22,000.

49
2) ABSLI Vision Money Back plus Plan: ABSLI Vision Money Back plus Plan

provides you with regular liquidity to meet your financial requirements along

with adequate life cover against any unfortunate event. The minimum sum

assured is INR. 1, 00,000.

3) ABSLI Vision Life Income Plan: This is a comprehensive plan which

provides you with a steady income and whole life cover. It is a perfect blend of

income and financial protection for you and your family with survival benefits

payable every year from the end of the premium paying term till maturity and

a life insurance benefit.

4) ABSLI Savings Plan: A traditional participating life insurance plan, the

ABSLI Savings Plan enables you to save regularly and grow your savings

steadily over time. You also have an option to take a loan against this policy.

The sum assured ranges between INR. 30,000 to INR. 10, 00,000.

5) ABSLI Vision Life Secure Plan: A traditional participating whole life

insurance plan, the policyholder receives the sum assured, accrued regular

bonuses and Terminal Bonus (if any). You can also enhance the protection

with riders such as ABSLI Accidental Death and Disability Rider, ABSLI

Critical Illness Rider and ABSLI Waiver of Premium. The sum assured starts

from INR. 2, 00,000 with minimum premium of Rs. 12,000 p.a..

6) ABSLI Income Assured Plan: This plan offers you secured savings, regular

income and a comprehensive financial protection for your family. It is a

traditional non-participating savings with protection plan which you can

customise to suit your needs by choosing the pay term and the policy term.

The minimum sum insured is INR. 1,00,000.

50
 7) ABSLI Vision Endowment Plus Plan: This plan provides you return of

premium along with accrued bonuses on maturity and also offers financial

protection for your family. The minimum sum assured is INR. 1,00,000 with a

minimum premium payment of INR. 2,495 p.a.

8) ABSLI Guaranteed Milestone Plan: This plan offers full benefits on death or

maturity with guaranteed additions that boost your corpus year on year. The

minimum sum assured is INR. 2,25,000 with options to choose policy term of

12, 14, 16, 18, 20, 22, 24 & 26 years.

9) ABSLI POS: Jeevan Bachat Plan: The ABSLI POS - Jeevan Bachat Plan

comes with guaranteed saving benefits and financial protection to your family

in your absence. You have two options of Premium Paying Term - single play

and limited pay.

Child Future Plan

This investment plan is designed to assist your child when it comes to funding their

foreign education, raising capital to set up a small home-based business or meeting

wedding expenses. It provides you with a high life cover along with an opportunity to

earn guaranteed returns on the investment and the freedom to manage your fund to

maximize your earnings as per need.

ABSLI Vision Star Plan: The ABSLI Vision Star Plan is designed keeping in mind of

the changing goals and aspirations of your child. Hence, throughout the term, you

have the flexibility to get the benefits of your payouts as per your child's need, and

deferring the payouts if required. During this time, if you face any unfortunate event,

then the policy continues in your absence and your child receives the amount he/she is

51
eligible for, at the time of payouts as decided by you. The minimum sum assured is

INR. 1,00,000.

Retirement Plan

A retirement pension solution that helps you face every financial obligation that might

arise during retirement. With three excellent retirement plans, you can build a sizeable

fund of money that will last you all through your post-retirement stage.

1) ABSLI Empower Pension Plan: The ABSLI Empower Pension Plan is a unit

linked non-participating pension plan that is simple and hassle-free. It helps

you accumulate premium and offers investment returns at the time of your

retirement. The basic premium is INR. 18000 p.a. and Rs. 36,000 p.m.

depending upon the time of payment - annually, semi-annually, quarterly or

monthly with an entry age of 25-70 years.

2) ABSLI Immediate Annuity Plan: The ABSLI Immediate Annuity Plan is a

unique insurance plan which offers regular income after retirement through a

single premium payment as a lump sum amount. You are entitled to tax

benefits under Section 80CCC and no medical tests are needed to avail this

policy.

3) ABSLI Empower Pension - SP Plan: This plan helps you focus on your goals

and enhances your savings to meet your retirement needs. It comes with a

single pay term of a minimum of INR. 1,00,000 with no such limit for the

maximum sum assured.

Health and Wellness Plans

52
Aditya Birla Health Solutions are specifically curated to provide quality treatment for

the insurer‘s family with an adequate sum covering hospitalization, major illnesses

and accidental injuries.

1) ABSLI Hospital Plus Plan: The ABSLI Hospital Plus Plan offers a fixed cash

amount in the event of hospitalization. You can supplement your policy by

mitigating additional expenses with a flexibility of choosing from 4 benefit

options to suit your needs. This policy also entitles the insured tax benefits as

per section 80D of the Income Tax Act, 1961.

2) ABSLI Cancer Shield Plan: The speciality of this plan is that it is meant to

provide cover at all stages of Cancer i.e. early stage of cancer and major stage

of cancer. If the diagnosis states a major stage of cancer, you have an option to

receive monthly income for 5 policy years. The minimum sum insured is INR.

10,00,000 while the maximum is limited to INR. 50,00,000.

3) ABSLI CritiShield Plan: Certain diseases such as heart and kidney ailments

demand more money than hospital bills. Aditya Birla Sun Life Insurance

CritiShield Plan protects your savings and lifestyle against such expenses. It

covers all stages of cardiac conditions and renal conditions with a waiver of

premium for 5 years on diagnosis of early stage conditions.

Wealth with Protection Plans

Aditya Birla Life Wealth with Protection plans provides a sizeable life insurance

cover to help you save money regularly for the future.

1) ABSLI Wealth Max Plan: A single premium unit linked insurance plan which

gives you the flexibility to add top-ups whenever you have additional savings

and flexibility of partial withdrawals to meet any emergency fund

requirements. The basic sum assured is 1.25 | 5 | 10 times the basic premium

53
 which ranges between a minimum of INR.1,00,000 for a policy term of 5 & 10

years or a minimum INR. 2,00,000 for a policy term of 15 & 20 years.

2) ABSLI Wealth Secure Plan: Aditya Birla Sun Life Insurance Wealth Secure

Plan combines long term savings and whole life coverage. It requires you to

pay premium for a limited term which entitles you a cover for whole life. The

basic premium ranges between INR. 20,000, 30,000 and 60,000, depending on

the time of payment - annually, semi-annually and monthly or quarterly.

3) ABSLI Wealth Assure Plan: A protection and savings plan that enables your

wealth to grow steadily over time. This investment cum insurance plan allows

you partial withdrawals in emergency situations and also lets you add top-ups

when you have additional savings. The minimum basic premium ranges from

INR. 1,00,000 if paid annually or INR. 1,80,000 if paid monthly.

4) ABSLI Fortune Elite Plan: Under the ABSLI Fortune Elite Plan, you decide

how to invest your premiums in one of the three investment options -

Systematic Transfer Option, Return Optimiser Option or the Self-Managed

Option.

5) ABSLI Wealth Aspire Plan: This insurance scheme helps you accumulate

substantial financial corpus by proving the flexibility to choose plan options,

policy term, premium paying terms and 4 investment options. You also have

the flexibility of partial withdrawals and adding top-ups in case of additional

savings.

54
COMPANY HISTORY

Aditya Birla Capital Limited (formerly known as Aditya Birla Financial Services

Limited) is the holding company of all financial services businesses of the Aditya

Birla Group. The company and its subsidiaries have a significant presence spanning

multiple sectors including non-banking financial company (NBFC) asset management

life insurance health insurance housing finance private equity general insurance

broking wealth management broking online personal finance management and

pension fund management. The company has also received a licence from the Reserve

Bank of India (RBI) to set up an asset reconstruction company.The company is

registered as a Non- Deposit taking Systemically Important - Core Investment

Company (CIC-ND-SI) pursuant to the receipt of Certificate of Registration from the

Reserve Bank of India (RBI) dated 16 October 2015 under Section 45-IA of the

Reserve Bank of India Act 1934 (RBI Act). As of 31st March 2018 Aditya Birla

Capital had 19 Indian Subsidiaries and 7 Foreign Subsidiaries (including step down

Subsidiaries).Aditya Birla Capital's wholly owned subsidiary Aditya Birla Finance

Limited (ABFL) is among India's leading private diversified non-banking finance

companies (NBFC) companies offering end-to-end financing and wealth management

solutions to a wide range of customers across the country. ABFL caters to varied

financial requirements of a wide range of customers across retail high-net-worth

individual (HNI) ultra HNI micro enterprises small and medium enterprises mid and

large corporates.Aditya Birla Capital's wholly owned subsidiary Aditya Birla Housing

Finance Limited (ABHFL) is registered with the National Housing Bank as a housing

finance company under the National Housing Bank (NHB) Act 1987. ABHFL offers a

comprehensive range of housing finance solutions such as Home loans Home

55
Extension Loans Plot & Home Construction Loans Home Improvement Loans Loans

Against Property Construction Financing Commercial Property Purchase Loan and

Property Advisory Services.Aditya Birla Sun Life AMC Limited (ABSLAMC) the

investment manager of Aditya Birla Sun Life Mutual Fund is a joint venture between

the Aditya Birla Group and the Sun Life Financial Inc. Canada's leading international

financial services organisation. Aditya Birla Capital holds 51% stake in ABSLAMC.

ABSLAMC is India's third largest mutual fund based on domestic average assets

under management (AAUM) as published by AMFI for the quarter ended March

2018.Aditya Birla Sun Life Insurance Company Limited (ABSLI) is a 51:49 joint

venture between the Aditya Birla Group and Sun Life Financial Inc. ABSLI is one of

India's leading private life insurance companies. Aditya Birla Health Insurance Co.

Limited (ABHICL) is 51% and 49% joint venture between Aditya Birla Capital

Limited (ABCL) and MMI Strategic Investments (Pty) Ltd. ABHICL is engaged in

the business of health insurance. Aditya Birla Capital's subsidiary Aditya Birla

Insurance Brokers Limited (ABIBL) is a leading composite general insurance

intermediary licensed by the Insurance Regulatory and Development Authority of

India (IRDA). The company specializes in providing general insurance broking and

risk-management solutions for corporate and individuals. The company also offers

reinsurance solutions to insurance companies; and has developed enduring

relationships with Indian and global insurers operating in India and many other

countries in South Asia the Middle East and Southeast Asia.Aditya Birla Capital's

wholly owned subsidiary Aditya Birla PE Advisors Private Limited (ABPE) provides

financial advisory and management services with focus on managing venture capital

funds and alternate investment funds. Aditya Birla Capital's subsidiary Aditya Birla

56
Money Limited (ABML) is a broking and distribution player offering equity and

derivative trading through National Stock Exchange (NSE) and Bombay Stock

Exchange (BSE) and Currency Derivative on MCX-SX. It is registered as a

Depository Participant with both National Securities Depository Limited (NSDL) and

Central Depository Services Limited (CDSL) and provides commodity trading on

Multi Commodity Exchange (MCX) and National Commodity and Derivatives

Exchange (NCDEX) through its subsidiary. Aditya Birla Capital's subsidiary Aditya

Birla MyUniverse is India's first integrated online personal finance management

platform. MyUniverse helps customers get a complete LIVE picture of their finances

by securely aggregating their online bank credit card mutual fund stock insurance and

loan accounts. Pursuant to the change in name of the company RBI issued a Fresh

Certificate of Registration dated 6 July 2017 in the name of Aditya Birla Capital

Limited.The Board of Directors of the company at its Meeting held on 11 August

2016 approved a Composite Scheme of Arrangement between (erstwhile) Aditya Birla

Nuvo Limited (ABNL) Grasim Industries Limited (Grasim) and the company and

their respective shareholders and creditors (the Composite Scheme). The National

Company Law Tribunal Bench at Ahmedabad sanctioned the Composite Scheme on 1

June 2017 and the certified true copy of the Scheme as received on 6 June 2017 was

filed with the Registrar of Companies (ROC) on 4 July 2017 being the effective date.

The Demerger Committee of the Company fixed 20 July 2017 as the record date for

allotment of Equity Shares as per the Share Entitlement ratio pursuant to the

Composite Scheme. Allotment of equity shares of the company to each eligible

shareholder of Grasim Industries Limited whose names were recorded in the register

of Members of Grasim as on the record date i.e. 20 July 2017 was made on 14 August

57
2017 as per the Share Entitlement ratio pursuant to the Composite Scheme. The

Equity Shares of the company were listed on BSE Limited (BSE) and National Stock

Exchange of India Limited (NSE) (BSE and NSE and were admitted to trading with

effect from 1 September 2017. The Global Depositary Shares (GDSs) issued pursuant

to the Composite Scheme were listed on the official list of the Luxembourg Stock

Exchange (LSE) and admitted to trading on the Euro MTF market of LSE with effect

from 11 October 2017.Aditya Birla Sun Life Insurance Company Limited became a

subsidiary of Aditya Birla Capital with effect from 23 March 2017.On 30 June 2017

thecompany issued and allotted 4.84 crores equity shares of Rs 10 each to PI

Opportunities Fund I on a Private Placement basis.The overall lending book for

Aditya Birla Finance Limited (ABFL) grew year-on-year by 25% to Rs 43242 crore as

on 31 March 2018. The retail SME and ultra HNI segments continued to grow faster

and constituted 47% of the portfolio as on 31 March 2018 vs.43% in the previous

year. Aditya Birla Housing Finance Limited's (ABHFL) loan book doubled year-on-

year from Rs 4136 Crore in FY 17 to Rs 8137 Crore in FY 18. The gross

disbursement has doubled year-on-year from Rs 2802 Crore to Rs 5105 Crore in FY

18. ABHFL reported its first full profitable year in FY 18. The company forayed into

the affordable housing segment in June 2017. ABHFL's footprint expanded to 51

branches with 2700+ channel partners as on March 2018.Aditya Birla Sun Life AMC

Limited (ABSLAMC) achieved the milestone of becoming India's third largest mutual

fund with a quarterly AAUM of Rs 267739 crore for the quarter ended March 2018.

During the year ended 31 March 2018 Aditya Birla Sun Life Insurance Company

Limited (ABSLI) tied up with HDFC Bank with access to the bank's non-branch

channel. HDFC has provided access to its pan-India branches with effect from 1 April

58
2018 leading to a significant business potential in the coming years.Aditya Birla

Health Insurance (ABHI) completed its first full year of operations in FY 18. In FY 18

ABHI created and activated capacities in all channels which include 15700+ agents

across 59 branches 5 bancassurance partnerships 190+ brokers and the launch of

direct tele- assisted and online channels. It has empanelled 4200+ hospitals to enable

cashless services across 540 cities.

59
OBJECTIVES OF
THE STUDY

60
 OBJECTIVES OF THE STUDY

 To analyze the market why people prefer Aditya Birla Sun Life Insurance

products?

 Ascertain the profile and characteristics of potential buyers.

 To have an insight into the attitudes and behaviors of Customers.

 To find out the differences among perceived service and expected service.

 To access the degree of satisfaction of the consumers with their policy from

Aditya Birla Sun Life Insurance.

61
 RESEARCH
METHODOLOGY

62
 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically. In it we

study the various steps that are generally adopted by a researcher in studying his

research problem along with the logic behind them. It is necessary for the researcher

to know not only the research methods/ techniques but also the methodology.

Researcher not only need to know how to develop certain indices or tests, how to

calculate the mean, the mode, the median or the standard deviation or chi- square, how

to apply particular research techniques , but they also need to know which of these

methods or techniques are relevant and which are not , and what they mean and

indicate. Researchers also need to understand the assumptions underlying various

techniques and they need to know the criteria by which they can decide that certain

techniques and procedures will be applicable to certain problems and others will not .

All this means that it is necessary for the researcher to design a methodology for his

problem as the same may differ from problem to problem.

Research in common parlance refers to a search for knowledge. Once can also define

research asa scientific and systematic search for pertinent information on a specific

topic. In fact, research is an art of scientific investigation. The Advanced Learner‘s

Dictionary of Current English lays down the meaning of research as ―a careful

investigation or inquiry specially through search for new facts in any branch of

knowledge. Redman and Mary define research as a ―systematized effort to gain

new knowledge. ―Some people consider research as a movement, a movement

from the known to the unknown. It is actually a voyage of discovery. We all

possess the vital

63
 instinct of inquisitiveness for, when the unknown confronts us, we wonder and our

inquisitiveness makes us

probe and attain full and fuller understanding of the unknown. This inquisitiveness is

the mother of all knowledge and the method.

TYPE OF RESEARCH:

The research design of the project is descriptive and analytical research which has

helped in the analysis and description of the candidates.

i. DESCRIPTIVE RESEARCH -

Descriptive research includes surveys and the facts finding enquires of different kinds. The

major purposes of descriptive research are description of the state of affairs as it exists

at present. In social science and business research we quiet often use the term Ex post

factor research for descriptive research studies. The main characteristics of this

method are that the researcher has no control over the variables; he can only report

what has happened or what is happening. The methods of

Research utilized in descriptive research is survey methods of all kinds, including

comparative and co – relational methods.

The descriptive research attempts to describe, explain and interpret conditions of the

present i.e. ―what is‘. The purpose of a descriptive research is to examine a

phenomenon that is occurring at a specific place(s) and time. A descriptive research is

concerned with conditions, practices, structures, differences or relationships that exist,

opinions held, processes that are going on or trends that are evade

64
ii. ANALYTICAL RESEARCH -

In analytical research, on the other hand, the researcher has to use facts or information

already available, and analyse these to make a critical evaluation of the material.

Data Collection Tools:

Company reports

Newspapers

Various websites

Brochures

Data Collection Methods:

For this project report primary data (through interviews and selection methods) and

secondary data (employees data records provided by the company) both has been

collected.

I. PRIMARY DATA –

Primary data involves the collection of original primary data. It can be accomplished

through various methods, including questionnaire and telephone interviews in market

research or experiments and direct observations in the physical sciences among others.

II. SECONDARY DATA –

Secondary data means data that are already available i.e. they refer to the data which

have been collected and analyzed by someone and can save both money and time of

65
 the researcher. Secondary data may be available in the form of company records, trade

publications, libraries etc. secondary data sources are as follows:

 Company reports

 Daily newspaper

 Standard textbook

 Various websites

FIELD WORK:

An interview scheduled and well structured questionnaire is administered to the target

respondents to collect primary data ( copy of questionnaire is attached in the

appendix) Open and close-ended questions are used in the questionnaire. The orders

of the questions are in such a manner that they begin with simple questions and lead

on the questions that needed more involvement from respondents. The secondary data

are collected from periodicals, magazines, journal and internet.

RESEARCH DESIGN:

A research design is a basic plan, which guides the researcher in the collection and

analysis of data required for practising the research. Infect the research design is the

conceptual structure where the research is conducted. It constitutes the ―blue

print‖ for the collection , measurement and analysis of the data . The study is carried

out to understand the ―market analysis and buying behaviour of Aditya Birla

Sun Life Insurance products‖. Foe this study the researcher used explanatory

research designs. This research covers 50 customers in Lucknow city

66
SAMPLE DESIGN:

The process of drawing a sample from a large population is called sampling.

Population refers to the total of items about which information is defined. well

selected samples may reflect fairly and accurately the characteristics of the

population.

Sampling unit:

The sample unit of this survey was the customers from Lucknow city.

Sampling size:

The sample size was 50 customers from various parts of Lucknow city.

67
 USE AND
IMPORATNCE
OF THE
STUDY

68
 USE AND IMPORATNCE OF THE STUDY

Investment behaviour differs from one to another. Especially when it comes to

insurance, there is a large difference and influence of factors which also govern

buying behaviour. Even most of the earning persons are not aware about right

insurance plans for themselves. As we know that financial security of our family is

very important but even then people afraid from life insurance agents and avoid

purchasing life insurance policies. Some persons buy insurance plans for tax saving

purpose only. So an effort is made to attempt and explore through a descriptive

research to find out buying behaviour of consumers towards life insurance policies in

Lucknow City.

69
DATA ANALYSIS
&
INTERPRETATION

70
 DATA ANALYSIS & INTERPRETATION

1) Monthly income of customers:

Monthly income inn between percentage

>5000 10
5000-10000 35
10000-40000 50
Nil 5

Sales

>5000
2000-10000
10000-40000
nil

As from the study 10% of market has a income of less than 5000 per month .35% of
market has a income of 5000-10000 per month.50% of the market has an income of
10000-40000 per month and 5% of them are dependent on their father or any other
family member.

71
 2. People perception about insurance from Aditya Birla Sun Life:

People‘s perception Percentage

Covers future uncertainty 34%

Tax savings 13%

Investments 6%

Comprehensive investment and 47%

Risk coverage instrument

Perception

future uncertainity tax saving investments

investment and risk coverage

Among 100% respondents, 47% of them take insurance policy for investment purpose
and risk associated with their life. 34% respondents take life insurance policy for
future uncertainity.13 % of them takes life insurance for tax savings and 6% take it as
for investments.

75
3. Buying preference of the respondents:

Customers approaching insurance 55%

Company or agents

Company or agents approaching 45%

customers

buying preference

customers approaching company or agents

company approaching customers or agents

Among 100% of the respondents, 55% of them approach the insurance company or
agents for life insurance and 45% of them are approached by the companies.

76
4. Satisfaction of respondents after taking the life insurance policy from Aditya Birla
Sun Life Insurance company ltd.

Highly satisfied 60%

Satisfied 30%

Not so satisfied 10%

satisfaction of respondents

Highly satisfied Satisfied

Not so satisfied

Among 100% of the respondents, 60% of them are highly satisfied with the policy of
Aditya Birla Sun Life Insurance company limited, while 30% are just satisfied and
remaining 10% are not so satisfied.

77
5. Rating scale of Aditya Birla Sun Life Insurance products.

Ratings Percentage

1 1%

2 9%

3 30%

4 40%

5 20%

ratings

1
2
3
4
5

Among 100% of respondents, 20% of respondents have given 5 ratings to Aditya

Birla Sun Life products. 40% being the highest given 4 ratings to Aditya Birla Sun
Life products.9% has given 2 ratings and 1% has given 1 rating.

78
Comparison to LIC
1) Do you think that investment in Insurance sector is good option?

Particulars No. of respondents

Yes 90

No 10

Interpretation : 90 people say that investment in insurance sector is good option and

10 are saying not.

79
3) Which type of policy you have?

Particulars No. of No. of respondents

respondents BSLI

LIC

Whole life plan 20 10

Retirement plan 10 4

Children plan 18 22

Health plan 6 4

Golden jubilee plan 6 0

Total 60 40

Interpretation: 20 people of LIC and 10 of Birla have whole life plan, 18 people

80
of LIC and 22 of birla have Children plan.

4) What percentage of interest you get from it?

Particulars No. of respondents No. of respondents

LIC BSLI

Below 5 % 0 0

5-8 % 14 6

8-12 % 42 28

Above12 % 4 6

81
Interpretation: 14 people of LIC and 6 of Birla are getting 5-8% R.O.I., 42 people of

LIC and 28 of Birla are getting 8-12% interest.

5) Why do you invest in this(LIC/BSLI) company?

Particulars No. of respondents No. of respondents

LIC BSLI

High interest 8 12

Good image of CO. 12 4

Growth of the CO. 18 12

Annual premium is 10 4

reasonable

Maturity benefits 12 8

82
 Interpretation: 12 people of Birla are investing in this company due to

its high interest, 18 people of LIC say that they are investing in LIC due to growth of

the co.

6) Do you think that investment in BSLI is better than LIC ?

Particulars No. of respondents

Yes 44

No 56

No. of respondents
Yes No

44

56

Interpretation: 44 people are saying that investment in BSLI is better than LIC, but

56 are saying no.

(If NO then go to Q.N. 8 otherwise Q.N. 7)

83
7) If yes, then why?

Particulars No. of respondents

Guaranteed F.V. at maturity 10

Growth rate 16

More ULIP plan 8

Risk covered 4

All above 6

Interpretation: 16 people are saying that because BSLI gives guaranteed F.V. at

maturity time, 8 are saying it has more ULIP plans.

84
8) If no, then why?

Particulars No. of respondents

LIC have govt. stake 24

Brand loyalty of LIC 14

Low A.P. than BSLI 12

High return 6

BSLI, 12 stake, 24

High return

LIC, 14

Interpretation: 24 people are saying that investment in LIC is better it has govt.

stake, 14 are saying it has brand loyalty.

85
9) When company launch new product , then any information is given to

you about that product?

Particulars No. of respondents No. of respondents

LIC BSLI

Yes 24 16

No 36 24

40
35
30
25
20
15
10
respondent
No.

respondent
No.
of

of

Interpretation: 24 people of LIC are saying yes and 36 are saying no, 16 people of

BSLI are saying yes and 24 are saying no about providing information.` 67

86
10) In near future, do you think BSLI will have high growth rate?

Particulars No. of respondents

Agree 20

Neutral 26

Disagree 14

Can‘t say 40

Interpretation: 20 people are saying that BSLI will grow in future, 26 are saying it

will be neutral, 40 can‘t say, and 14 are disagree.

87
FINDINGS

88
 FINDINGS

 The male consumers capture the market share with 68%, followed by the
female consumers with 32%

 The majority of the consumers of Aditya Birla Sun Life Insurance company
are private employees with 48% and government employees with 44%.

 LIC has a greater market share as in comparison to Aditya Birla Sun

Life Insurance company limited.

 The factors which influenced to select a life insurance company is the personal
factor, followed by family, friends, agents and advertisements.

 Most of the peoples are scared about the insurance policy or company as they
were cheated by many agents.

 In insurance sector, many people are cheated by agents and companies so it

was difficult to win their trust.

 Majority of consumers (58%) are aware about 5-7 life insurance companies.

 Majority of consumers (78%) would like to communicate the service

offered by life insurance companies.

89
SUGGESTIONS

90
 SUGGESTIONS

The suggestions are based on analysis and observation during the field study-

 Due to intense competition in the life insurance market, Aditya Birla Sun Life

Insurance company limited has to adopt better strategies to attract more customers.

 Return on investment, company reputation and premium outflow are most preferred

attributes that are expected by the respondents. Hence greater focus should be given to

these attributes.

 Life insurance products are taken mainly by middle and higher income group. Hence

they should be regarded as main targeted income groups. Life insurance products

which are suitable for lower income group should also be released so that the market

share increases.

 Aditya Birla Sun Life should adopt effective promotional strategies to increase the

awareness level among the consumers and to win their trust.

 Aditya Birla Sun Life should ask for their consumer‘s feedback to know whether the

consumers are really satisfied of dissatisfied with the service and product offered by

them. If they are dissatisfied, then the reasons for dissatisfaction should be found out

and corrected in future.

 The LIC brand name has earned a lot of goodwill and enjoys high brand equity. As

there is intense competition in life insurance market, Aditya Birla Sun Life should

work hard to come in the top position.

91
CONCLUSION

92
 CONCLUSION

Here in this study we see that people have more policies of LIC in comparison to

BSLI. People have more faith in govt. companies than private. So it is necessary for

BSLI Co. that it should give more attention to that points or that areas where it lacks

for further future growth. Insurance sector is very wide and co. can grow in future.

An insurance policy is an investment oriented plan. As compared to other investment

plans, the investment portfolio of the insurance policy functions like a mutual fund

and other investment. It is invested in a portfolio of debt and equity instruments, in

conformity with the announced investment policy. Hence it grows or erodes in line

with the performance of that portfolio.

From this study it reveals that the consumer‘s attitude towards insurance policy and

insurance company changed a lot. A five years before the consumers and the general

public were not interested to take an insurance policy but now days there are many

options and choices in front of customers. They are interested to take high return

policies in order to secure their lives. People are aware of all the benefits and returns

of insurance policies. as a result of these new international and domestic companies

are coming to the Indian market.

Since there are many players in the Indian insurance market the competition level is

very high. So the companies are introducing new schemes. From this it is found that

the LIC is the major market share holder in the insurance field. Even if there are many

players in this field still it is an untapped market. Only a few portion of Indian

population is insured.

93
Though LIC has a largest market share because of its claim settlement ratio and

goodwill in the market from many decades, so it will be a tough competitor of Aditya

Birla Sun Life and other companies.

94
LIMITATIONS
OF THE STUDY

95
 LIMITATIONS OF THE STUDY
Time constraints:

The time stipulated for the project to be completed is less and thus there are chances

that some information might have been left out, however due care is taken to include

all the relevant information needed.

Sample size:

Due to time constraints the sample size was relatively small and would definitely have

been more representative if I had collected information from more respondents.

Accuracy:

It is difficult to know if all the respondents gave the accurate information; some

respondents to give misleading information.

96
BIBLIOGRAPHY

97
 BIBLIOGRAPHY

WEBSITES:

• Www.aegonlife.com
• www.google.com
• www.economictimes.com
• https://en.m.wikipedia.org
• https://www.policygenius.com

NEWSPAPER:

 Times of India
 Economic times

98