Marketing & Operations study in Banc assurance

At SBI Life Insurance Co. Ltd., Jammu

Summer Internship Report Submitted in the partial fulfilment of requirement for the award of degree of

Master in Business Administration (MBA)

Submitted by: Megha Sharma (2010MBA25)

College of Management

Shri Mata Vaishno Devi University Kakryal, Katra, J&K 2011

Acknowledgement

I am convinced that it is virtually impossible for me to undertake and complete my internship without the encouragement and guidance of so many people out there.

At the very outset, I express my heartfelt gratitude to Mr. Surinder Singh Dhanjal (Area Manager, Banc assurance, SBI Life, Jammu), Mr. Sushil Hans, Mr. Rajan Mahajan, for their sincere advice, inspiring guidance, constructive criticism, fruitful suggestions, useful supervision and importantly allowing me to undergo the summer internship in their supervision.

I am also deeply indebted to Ms. Vandana Kharbanda(HR Manager, SBI Life, LHO, Chandigarh) for giving me the much needed permission and allowance to do my internship at SBI Life Insurance Co. I also take the opportunity to thank the staff and other employees of SBI Life Branch, Jammu to appreciate the help and suggestions they have provided from time to time.

Lastly, I thank my family and friends for their unconditional support without which this report would not have been possible.

Preface & Foreword

As a part of the college curriculum, I undertook the summer internship at SBI Life Insurance Co. Ltd., Jammu, Indias largest private insurer company in terms of the first year premium collection. It was a great opportunity for novices like me to work with such hard working professionals at SBI Life and learn the basic tools of trade. SBI Life is one of the leading brands in the life insurances in India and recently it overtook ICICI Prudential to become the largest private insurer in the country. Being a student of MBA, my internship was supposed to be primarily concerned with the study of the marketing & operations in banc assurance of SBI Life. But I would like to add here that what I learnt at SBI Life was not just about the marketing & operations all way long, my interactions with the people at SBI Life, the administrators and the managers, whom I found to be practical and prosaic minded, was really an eye opener. It was an experience of its kind. It was for the first time that I came in one-to-one correspondence with the business of Life Insurances and thus found that people associated with this business section really need to put in a lot of effort.

Marketing and operations study is a much needed exercise one must practise in order to understand the very basic of any business firm. The same lies in the case of SBI Life also. As it is a life insurance company, so it generally deals with the marketing and sales of its life insurance products into the market. The SBI Life offers its customers, a wide range of existing and flexible products, which they can opt according to their needs and choices. Both marketing and operations form the integrated backbone for generating the business for SBI Life. The need for the life insurances has become quite mandatory in this world full of uncertainties. Also SBI Life has become the leading private insurer in the country offering the same.

Hence, keeping this in view I decided to undergo the internship in marketing and operations, thereby exploring a wonderful family of SBI Life that believes in providing the best of protections via its products to its valuable customers

1. SBI Life Insurance Co. Ltd.

1.1 Introduction
SBI Life Insurance is a joint venture life insurance company between State Bank of India (SBI), the largest state-owned banking and financial services company in India, and BNP Paribas Assurance. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI Life Insurance has an authorized capital of 2,000 crore (US$446 million)and a paid up capital of 1,000 crores (US$223 million). It is basically an insurance company that was founded in March, 2001, having its head quarters in Mumbai, India.This group is headed by Mr. Mahadev Nagendra Rao (MD & CEO). Currently SBI Life includes 7334 on-roll employees and 75000 agents.

State Bank of India (SBI) forms the first owner of the SBI Life. It is the largest Indian banking and financial services company (by turnover and total assets) with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta and Bank of Bombay to form Imperial Bank of India, which in turn became State Bank of India. The government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.

SBI Logo

Talking about the BNP Paribas, it stands for Banca National De Paris. It is a premier, 200 years old French Financial institution. BNP Paribas Cardif is the life and property & casualty insurance arm of BNP Paribas, one of the strongest banks in the world ( ranked 2nd in the world). BNP Paribas Group, having presence in more than 80 countries ranks highly in Retail Banking, Investment Solutions and Corporate & Investment Banking. BNP Paribas Cardif is one of the world leaders in creditor insurance and its life and non-life insurance units have received an AA rating from Standard & Poor's.

In 2007, CRISIL Ltd, a subsidiary of global rating agency Standard & Poor's, gave the company a AAA/Stable/P1+ rating.

1.2 History
When the government of India opened the life insurance sector to private companies, SBI started SBI Life as a joint venture with BNP Paribas in 2001. While in its initial stage its business was mainly from banc assurance channel, now it is developing its own agency team for selling its life insurance products.

1.3 Branches
The SBI Life group has its branches spread all over the country. Along with its 5 Associate Banks, State Bank Group has the unrivalled strength of over 16,000 branches across the country, arguably the largest in the world.

1.4 Mission
"To emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and become a model life insurance company in India in the post liberalization period".

1.5 Values
Trustworthiness Ambition Innovation Dynamism Excellence

1.6 Key mile-stones

Financial Year 10-11: Won the most coveted NDTV Profit Business Leadership Award 2010. Globally topped the prestigious Million Dollar Round Table (MDRT) 2010 for having the maximum number of MDRT members.

Awarded the Gold Shield by Institute of Chartered Accountants of India (ICAI) for Excellence in Financial Reporting. Won the ICS Quality Champion Award 2010 for Continual Quality Improvement. Adjudged Best Life Insurer 2010 - Runner Up by Outlook Money. Launched an innovative customer care initiative - SMS SOLVE for prompt Grievance Redressal. ICRA reaffirmed iAAA rating to SBI Life, indicating highest claims paying ability and meeting policyholders obligations. CRISIL, countrys leading rating agency, reaffirmed its highest financial rating AAA/Stable to SBI Life.

1.7 Corporate Social Responsibility (CSR)

Gift Drishti

One of the corporate ethos, enhancing the SBI Lifes brand value, is about giving back to the society. In line with its Corporate Social Responsibility (CSR) initiatives, the cause of supporting the Elderly Citizens was initiated. Incidence of cataract blindness, annually at 3.28 million, is one of the most prevalent health ailments suffered by old people, particularly in rural pockets of our country.On the occasion of World Elder's Day on 1st October, CSR initiative - "Gift Drishti" (Restoring vision) was launched in partnership with HelpAge India, a registered national level voluntary body, working for the cause of disadvantaged aged persons. Restoring vision is done through Intra Ocular Surgery (IOL). SBI Life employees made monetary contributions to the cause. SBI Life donated twice the sum contributed by its employees. Eye sight for thousands of elderly citizens was restored across the rural parts of the country.
Gift Drishti Camps

Read India Pledge

SBI Life undertook the Corporate Social Responsibility (CSR) initiative, aimed at driving the cause to make children read and write. The campaign, "Read India Pledge" sensitized general public towards the cause and urged them to pledge & support the cause monetarily or by devoting time. The campaign was partnered by Pratham, one of the leading child-cause related NGOs and Radio Mirchi, a leading radio station.
Read India Camps

2. Banc assurance

The Internship Training mainly focused on the process being followed at SBI Life, which leads to the generation of business from the customers. Before dealing with the operations and procedural techniques being followed in the Banc assurance division of SBI Life, it is important to understand the basics of it.

The Bank Insurance Model ('BIM'), also sometimes known as 'Banc assurance', is the term used to describe the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products. BIM allows the insurance company to maintain smaller direct sales teams as their products are sold through the bank to bank customers by bank staff. Bank staff and tellers, rather than an insurance salesperson, become the point of sale/point of contact for the customer. Bank staff are advised and supported by the insurance company through product information, marketing campaigns and sales training. Both the bank and insurance company share the commission. Insurance policies are processed and administered by the insurance company. BIM differs from 'Classic' or Traditional Insurance Model (TIM) in that TIM insurance companies tend to have larger insurance sales teams and generally work with brokers and third party agents. BIM is extremely popular in European countries such as Spain, France and Austria, and now it has also started rooting itself in the Indian continent, e.g. like ICICI prudential, ICICI Lombard, etc. The usage of the term picked up as banks and insurance companies merged and banks sought to provide insurance, especially in markets that have been liberalised recently. It is a controversial idea, and many feel it gives banks too great a control over the financial industry or creates too much competition with existing insurers. In some countries, bank insurance is still largely prohibited, but it was recently legalized in countries such as the United States, when the GlassSteagall Act was repealed after the passage of the Gramm-Leach-Bliley Act. But revenues have been modest and flat in recent years, and most insurance sales in U.S. banks are for mortgage insurance, life insurance or property insurance related to loans. But China recently allowed banks to buy insurers and vice versa, stimulating the banc assurance product, and some major global insurers in China have seen the banc assurance product greatly expand sales to individuals across several product lines.

Privat banc assurance is a wealth management process pioneered by Lombard International Assurance and now used globally. The concept combines private banking and investment management services with the sophisticated use of life assurance as a financial planning structure to achieve fiscal advantages and security for wealthy investors and their families. Hence, the above concept applies to the Banc assurance division of SBI Life as well. The Banc assurance section forms an important part of the SBI Life Insurances, well integrated with the others like agency, Institutional alliances, etc.

3. Operations at SBI Life

SBI Life has a unique multi-distribution model encompassing vibrant Banc assurance, Retail Agency, Institutional Alliance and Corporate Solutions distribution channels. SBI Life extensively leverages the State Bank Group relationship as a platform for crossselling insurance products along with its numerous banking product packages such as housing loans and personal loans. SBIs access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country, thus ensuring true financial inclusion. Agency Channel, comprising of the most productive force of over 75,000 Insurance Advisors, offers door to door insurance solutions to customers.

At present there are 23 life and approximately 23 general insurances (Co.) operating in India, out of which SBI Life deals in only the life insurance policies. All the insurance products of SBI Life are governed by the IRDA acts, terms, conditions & regulations.

Multi-Distribution Model of SBI Life:

As already stated, SBI Life operates in four major divisions namely:

These divisions are briefly explained as under:

3. 1 Agency (Retail Agency)

The agency forms a vital section in the operations of SBI Life. The business is generated in the agency via different officials; these include the Insurance advisors (IAs) / (Agents). In the Retail Agency, the agents or IAs are recruited independently by the SBI Life agency heads and these selected agents thus create business for the Co. on their own without the help of any other channel or media. These agents directly interact with the customers, in other words the Co. directly reaches the customers for the selling of its products. These agents are also called as the on-roll employees of the Co. as they perform the on-rolling job. In lieu of the services that they perform for the SBI Life, they get the incentives and commissions that is wholly-solely owned by these agents or IAs.

3.2 Institutional Alliances

The Institutional alliance or IA division of SBI Life basically deals independently with the corporate brokers that are in turn operating as a financial institution, etc. In case of SBI Life, the different corporate brokers with which it deals are India Info line, Muthoot Finance etc. These and many other are the corporate entities or the institutions that share an alliance with the SBI Life insurance Co. This Institutional alliance creates mutual benefits for both SBI Life and the associated corporate; such that the business is created for the SBI Life as these corporate brokers deal in selling the insurance products of SBI Life to its customers. On the other hand, these corporate brokers receive the commissions from the SBI Life in exchange of their services they perform for the same.

3.3 Group Corporate (GC)

This division is an equally important branch for the SBI Life. However, this division is mainly operated and controlled by the Chandigarh HO (Head office) of SBI Life in association with its other branches all over India. The GC is precisely a group division, that is, it caters mainly to the group insurances. This section has the Group insurance plans that are meant only for the corporate groups, thereby selling group products only to the corporate groups and not to the individuals. This can be best illustrated with the help of multi crore dealing that was closed between SBI Life and Bharat Heavy Electricals Ltd. (BHEL). In the year 2009-10, a deal, worth about 560 crore was established between SBI Life and BHEL , in which BHEL was sold the annuity products worth the said amount by SBI Life.

3.4 Banc assurance

The meaning and the very basics of banc assurance have already been made clear in the previous chapter. This section will cover the procedural techniques and the operations that are being followed in the Banc assurance division of SBI Life.

Operations at Banc assurance

As is clear from the roots of banc assurance, the marketing and the sales of different products that SBI Life offers to its customers is done with the help of bank sales channel, that is, the bank employees are certified to sell the insurance products of the SBI Life Co. These bank employees directly deal with the customers to generate the business for the SBI life. Such bank employees are designated as Certified Insurance Facilitators (CIFs). These form the real employees of the Co. In other words, they are the paid employees; however the commission or the incentives that they enjoy are lesser than those of the retail agents. Basically, the SBI Life Co. gives the commission to the SBI bank on account of the sale of the Co. products that the Bank does. This commission, thus received is then shared amongst the CIFs (bank employees) based on their performances. Selection of CIFs There is a proper procedure being followed for the selection of the CIFs by the SBI Life. The flowchart for the same is as follows:

In the above diagram, SPs * refer to the Specified Persons, while HO* refer to Head Office (SBI Life), Chandigarh. Product Designing The designing of the various insurance products that the SBI Life offers to its customers is a very innovative, creative, interesting and imaginative job but at the same time, it involves a lot of hard work, efforts and large mental skills to design the products such that they prove beneficial both for the Co. and customers. The product designing process is a tedious job and does not gets completed in one go. It basically goes through various stages before reaching into its final shape and form. The diagrammatical representation of the same is as follows.

As is clear from the above representation, the whole process for the designing of the insurance products is accomplished in two main steps 1. At Product development end, and 2. Accury end. These two form the important stages that lead to the final creation of insurance products, the form in which they are offered to the customers.

The whole procedure starts with the product inception. It involves developing the initial idea of the product, and generating the future track how the product will work. This is done by the Product Development Team of SBI Life. The team also works on developing the basic structure for the product. The next step involves the justification and verification of the product by the Accury. The Accury justifies the product developed partially by the product development team and also gives the verification on the validity of the same before the product is marketed to the customers. In addition, the Accury is also involved in deciding the premium figures, tables, the level of mortality risk, and designing the risk cover for every insurance product, based on the initial exercise done by the product development team. In this way the product designing takes place and finally reaches to the customers.

Closing of the Deal b/w CIF & Customer Certain activities are involved before and after the deal is finally closed between the CIF and the customer. These are briefly pointed as follows: 1. Form submission:a) It involves profiling of the customers based on their family background, age, history, financial status, etc. b) Plan offering based on the needs of customers. c) Form filling by the proposer who wishes to take the insurance policy (for him/herself or a person different from the proposer whose life is to be assured. d) Attachment of the documents by the customer with the basic policy form. e) Submission of the documents by the CIF to the Co. (SBI Life). 2. Premium Deposits:There are various options available to the customers for the depositing their premiums, a) Either he/she can deposit the first premium installment to the Bank (SBI). b) Or directly to the SBI Life. c) However, the cash payments are allowed only in the case of banks and not in the SBI Life. In the SBI Life, he/she can deposit the installments either via cheques or drafts. d) The customer can also make use of the latest technology for the same, i.e internet, ebanking, ATM cards, or debit cards (Visa or Master cards) etc. to make the deposits via above two channels.

e) The premium payment mode is also available through the Electronic Clearing System (ECS) in some of the existing policies, or via the Standing Instructions (where payment is made either by direct debit of bank account or credit card as already mentioned). f) In case of the cash payment for premium deposits in the bank, the vouchers are issued in the name of the Policy-holder.

4. Marketing Techniques & Strategies in Banc assurance

The second major complex tool that forms an important platform, providing its applications to the SBI Life is its Marketing Approach. The Marketing strategies that the SBI Life follows to advertise its products creates the base for the other departments for their better performance and helps to boost up the business for the Co. The Marketing also helps to create the leads so that every division of SBI life, either banca, agency, or any other achieve their set targets. Without the marketing techniques, it is almost impossible for any business entity to maintain its survival.

4.1 Major Products of SBI Life

The SBI Life markets many Insurance products, which can be classified into two major categories 1. Endowment Plans 2. ULIP Plans. Out of the different insurance products that the SBI Life offers to its customers, I studied the major five that are currently available in the market. These are enumerated as under. 1. Endowment Plans: a) Shubh Nivesh b) Money Back c) Scholar-2 2. ULIP Plans: a) Smart Performer b) Smart Scholar.

These Insurance Policies are explained in the further section in detail.

4.1.1 Endowment Policies

An endowment policy is a life insurance contract designed to pay a lump sum after a specified term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness. Policies are typically traditional with-profits or unit-linked (including those with unitised with-profits funds).

Endowments can be cashed in early (or 'surrendered') and the holder then receives the surrender value which is determined by the insurance company depending on how long the policy has been running and how much has been paid in to it.Endowment insurance plans provide life insurance cover for a specific period. The insured can get the sum assured plus any bonus or guaranteed additions that may accrue during the policy term.

A variation of the Endowment plan is the Endowment plan with Profit or Unit Linked Endowment plan with Profit. In such plans, in the event of death of the insured during the term of the policy, the nominee receives the sum assured plus the bonus/participating profit/guaranteed additions, if any. The bonus or profit is paid for the number of years that the insured survives in the policy term. In case of unit-linked plans, the nominee receives the value of the investments or the sum assured, whichever is higher. If the insured survives the term of the policy, she/he receives the sum assured plus bonus/participating profit/guaranteed additions, if any, for the entire term of the policy or the value of the investments. The premium for endowment plans is higher in comparison to term plans. If one purchases plans with GA, the premium is higher than that for a regular endowment plan. Many companies offer an option in choosing the premium paying term. Endowment plans are advisable if the insured wants to purchase a product that provides both - insurance cover and savings. Many people prefer to buy such policies for terms that mature during their retirement period. Often, the maturity amount is utilized to supplement the pension income. As a part of the summer internship, I studied three major endowment policies that the SBI Life offers. These are as under:

1. Money Back (get your money back & still stay insured):
We experience different Special moments in our life, like wedding, birth of a child, kids education or purchasing a new home. We need to be financially prepared for these special moments. What we need is the easy liquidity at regular intervals with life insurance protection to take care of these special moments. At SBI Life, it believes in offering benefits,

and not just any product. Introducing SBI Life Money Back plan, a smooth way to plan for all the special moments in our life.

What is Money Back Plan? It is a savings plan with added advantage of life cover and cash inflow at regular intervals. It is a participating traditional SBI Life-Money back Plan. In order to meet the various financial obligations at crucial junctures, we offer the customers a wide range of terms: 10, 15, 20, 25 years. Regular payments of survival benefits are made at different durations during the Policy term. In the unfortunate event of death at any time within the policy term, the nominee would receive the full Sum assured plus vested bonus, irrespective of the survival benefits already paid. What are the survival benefits available under different options? In this case, the customer will receive the guaranteed survival benefits on an increasing scale at regular intervals during the policy term. In addition, vested bonus will be paid with the last survival benefit declared during the policy term. This helps the customer to meet the financial obligations at crucial junctures. Option 1: Term 10 years In option 1, the term of the plan is 10 years, where the customer receives a total guaranteed survival benefit of 110% of basic sum assured plus a vested bonus. The guaranteed survival benefit payments are 30%, 35%, and 45% of the basic sum assured and will be paid at the end of the 8th, 9th, and 10th year of the term respectively.

Option 2 : term15 years. In option 2, the term of the plan is 15 years, where the customer receives a total guaranteed survival benefit of 115% of the basic sum assured plus vested bonus. The guaranteed survival benefit payments are 10%, 15%, 20%, 25% and 45% of the basic sum assured, and will be paid after every 3 years throughout the term of the plan.

Option 3: Term 20 years In option 3, the term of the plan is 20 years, where the customer receives a total guaranteed survival benefits of 120% of the basic sum assured plus the vested bonus. The guaranteed survival benefit payments are 10%, 15%, 20%, 25%, and 50% of the basic sum assured and would be paid after every 4 years throughout the term of the plan.

Option 4: Term 25 years

In option 4, the term of the plan is 25 years, where the customer receives a total guaranteed survival benefits of 125% of the basic sum assured plus vested bonus. The guaranteed survival benefit payments are 10%, 15%, 20%, 25%, and 55% of the basic sum assured and would be paid after every 4 throughout the term of the plan.

Thus, we find that the cumulative guaranteed survival benefits depend on the term chosen; higher the term, higher the cumulative guaranteed survival benefits. Vested Bonus is the total amount of bonus accrued under the policy during its entire term. It is payable along with the last survival benefit payment. What will the Nominee get in the event of a claim? In the unfortunate event of death during the term of the plan, the nominee will receive the basic sum assured + vested bonus (accrued till the date of death), irrespective of the guaranteed survival benefits already paid. Exclusions applicable to the basic cover: -suicide within the first year. Characteristics: Eligibility
Option 1 10yrs Min age at entry Max age at entry 15 60 Option 2 15yrs 15 55 Option3 20yrs 15 50 Option4 25yrs 15 45

Eligibility Criteria

Maximum age at maturity:70 years Sum assured: Rs. 50,000 to Rs. 5 crores (in multiples of 10,000). Premium payment mode: yearly, half-yearly, quarterly and monthly premium mode available either through the salary deduction or by giving the standing instructions

Attractive Optional benefits-Riders 1. SBI life- Pure term Rider:- This enables the customer to increase the pure risk cover for a small additional premium. 2. SBI Life Dhanvantri Supreme-individual critical illness (CI) Rider- On the diagnosis of any one of the 6 special critical illness, The rider sum assured will be payable in the lumpsum immediately. No. Hospitalisation bills need to be submitted. 3. SBI Life-Accidental death and permanent Disability (AD & PD) Rider:- It gives the customer additional protection against death or total permanent disability due to an accident for a nominal premium. 4. SBI Life- Premium waiver benefit (PWB) Rider (individual) :- Under this rider, if the policyholder suffers a total permanent disability due to accident, payment of future premiums due on the base product are waived.

Rider Exclusions SBI Life shall not be liable to pay benefits, if death of life assured is caused due to any of the following events. 1. Death due to suicide in the first year of the policy is not covered. 2. Intentional self injury, attempted suicide, insanity or immortality or whilst the life assured is under the influence of intoxicating liquor, drug or narcotics substances. 3. Injuries resulting from riots, civil commotion, rebellion, war (whether war be declared or not ), invasion, hunting, mountaineering, steeple chasing or racing of any kind, bungee jumping, river rafting, scuba diving, paragliding or any such adventurous sports. 4. Accident while the life assured is engaged in aviation or aeronautics in any capacity other than that of a fare paying or part paying or non paying passenger in any air craft which is authorised by the relevant regulation to carry such passengers & flying between established aerodromes, the life assured having at that time no duty on board the aircraft or requiring descent there from 5. Any breach of law by the life assured. 6. Arising from employment in the armed forces or military service of any country at war or from being engaged in duties of any para military, security, naval or police organisation.

Additional Exclusion for pure term rider: SBI life shall not be liable to pay the benefits, if death of life assured is caused due to any of the following events: 1. AIDS. Additional Exclusions for critical Illness Rider SBI Life shall not be liable to pay the benefits to the life assured, who opts for critical illness Rider in the following events: 1. The illnesses which are not included as critical illness or in respect of any of those illness the symptoms of which have occurred or would have been diagnosed for which the insured person received treatment during the 1st six months from the date of commencement of risk. 2. Pre-existing injuries or illnesses, treatment for which is not taken from recognised hospitals or doctors. 3.The illnesses/diseases has been resulted from any other illnesses/diseases for which the insured persons has previously received treatment, or which had previously been diagnosed or which he was aware of, at the commencement of the policy or within 1st six months from the date of policy. *Critical Illness includes cancer, heart attack, heart bye-pass surgery, kidney failure, stroke, and major organ transplantation. Are there any Tax Benefit? Tax benefits are available u/s 80c & 10(10D) of income tax act. Premiums paid for the critical illness benefit qualify for tax Exemption u/s 80D.

Additional advantages: Women get special rebate on the base premium amount One can get attractive premium rebates for a sum assured of Rs. 1 lakh and above. Higher the Sum assured, higher the rebate you receive. There are also attractive rebates for annual and semi-annual premium payment modes. You also have the benefit of 15 days free look period.

2. Shubh Nivesh (happiness hamesha):

One has dreams at every stage of life for himself and for his family. It may be to buy a car, a house, or for marriage, for childrens education, a vacation or dream of a better life after

retirement. How is it possible for one to achieve all this? One needs to save for ones future, for ones family to see them through their life even when he is not with them. Hence SBI Life wants the dreams of its customers to come true. Thats why SBI Life have developed this excellent participating traditional savings plan with an option of whole life cover, SBI Life- Shubh Nivesh. It will provide the customer multiple benefits of wealth creation, protection, regular income and wealth transfer. It is a perfect gift for the loved ones.

About SBI Life- Shubh Nivesh SBI Life believes that every person has different needs and hence should choose his/her own financial goals. This plan protects ones savings and comes with an option to leave a portion of ones wealth for ones children/grandchildren. There is also the choice of taking the benefits in the form of an income over a specified period according to ones choice. This is a specially designed plan that enables one to build not only his financial corpus but also provides one with complete protection through additional riders wherein one may choose to enhance ones life cover and accidental risk cover.

Plan Highlights: A unique savings plan with flexibility of availing whole life protection as an add-on benefit.

 Numerous benefits including wealth creation, protection, regular flow of income and wealth transfer. Flexibility to choose between single or regular premium payment Additional rider benefits at nominal cost. Option to receive the basic sum assured at regular intervals over a stipulated time period of 5/10/15/20 years. Tax benefits as per prevailing norms under the income Tax act, 1961.

Plan Options Endowment Assurance The base is a traditional endowment plan with simple revisionary bonuses which accrue till the end of the endowment term. The sum assured with all accrued bonuses will be paid on death during the endowment term or on survival till the end of the endowment term.

Whole life endowment Before the commencement of the contract, the customer also has the option to extend his cover for the whole life (or 100 years of age). The option gives an endowment + Whole life cover plan whereby, in addition to the endowment plan benefits mentioned above, one is entitled to an additional amount equal to the sum assured payable on death after the completion of the endowment term or on survival till age 100 years.

Know More The minimum sum assured for this plan is Rs. 75000 with no upper limit. Both regular premium and single premium options are available. Additional riders as detailed in later sections may be added to enhance protection.

Maturity Benefit Endowment assurance ( i.e whole life option is not taken) After completion of endowment term, the basic sum assured + vested simple revisionary Bonus is payable.

Whole Life Endowment (i.e. Whole life option is taken) After completion of endowment term the basic sum assured + vested simple revisionary bonus is payable.

On attainment of 100th birthday: basic sum assured payable.

Life cover benefit Endowment Assurance ( i.e. if whole life option is not taken) Death before the completion of endowment term: Basic sum assured + vested simple revisionary bonus.

Death after completion of endowment term: Balance amount of deferred Maturity payment option, if availed.

Whole Life Endowment (i.e. if whole life option is taken): Death before the completion of the endowment term: Basic sum assured + vested simple revisionary bonus is payable to the nominee.

Death after the completion of endowment term up to 100 years of age: Basic sum assured is payable to the nominee. Balance amount of deferred Maturity payment option, if availed.

Who can avail this plan? Individuals in the age group of 18 to 60 years can enter SBI Life- Shubh Nivesh with maximum life cover age of 65 years which increases to 100 years if the whole life option is taken at the beginning of the contract. The endowment term ranges from 5 to 30 years.

Flexible Premium Payment SBI Life offers its customers the flexible premium payment options to choose from: Single Premium Regular Premium

One can choose to pay regular premium at any convenient frequency i.e. yearly, half-yearly, quarterly & monthly. In case, one wishes to change the frequency subsequently, one can do so at any of the policy anniversary when the yearly renewal premiums fall due. Monthly premium payments are through the Standing Instructions on Credit card/Bank a/cs /ECs and salary savings scheme.

Minimum Premium Single premium: Based on the minimum sum assured. Regular premium: yearly Rs. 6000, half-yearly Rs.3000, quarterly Rs.1500 and monthly Rs.500.

There is no maximum limit on premium.

Rider protection for you & your family The customer has the option of availing the following Riders for complete protection at a nominal cost. One can enjoy the rider benefit up to the completion of the endowment term. Riders can be availed of at the inception of policy only. More than one rider can be selected. The rider sum assured cannot be more than the basic sum assured.
Riders SBI Life- preferred Term Rider: In the unfortunate Event of death, rider sum assured is payable + basic sum assured SBI Life-Accidental death benefit Rider: In case of death due to accident, rider sum assured becomes payable in addition to the basic sum assured. SBI Life-Accidental Total & permanent Disability Rider Min/max sum assured 25000/50,00,000

25000/50,00,000

25000/50,00,000

In the unfortunate event of ATPD, the sum assured is paid but the policy and other benefits continue. On payment of premiums, other riders and covers continue till the end of the endowment term chosen by the policyholder. Riders may be cancelled on any policy anniversary with 2 months advance written notice.

Other benefits

Surrender value/ paid up value Policy loans

Rebates Grace period & revival facility Participation in profits Free look period Tax Benefits. This policy also involves the suicide and the Riders exclusions similar as discussed in the earlier SBI Life- Money Back policy

3 .Scholar-2 (why to take chances with childs future):

As a caring parent, one would always want his child to get the very best. However, life is full of uncertainties and even the best laid plans could go wrong. An unfortunate event can make ones loved ones insecure, especially when you are no longer there for them. Therefore, this is the time when careful financial planning can help you fulfil the aspirations that one has for his children. SBI Life Insurance can help one in order to ensure that the childs future is secured and prosperous. SBI Life- Scholar-2, a traditional participating plan, is designated to protect ones childs future educational needs.

What is Scholar-2? Scholar-2 is designated to meet the twin objectives that concern every parent-savings for the childs education and securing a bright future despite the uncertainties of life. This enables the child to become what he/she wants to be. Scholar -2 has guaranteed benefits which are payable at regular intervals during the term of the policy. In addition, it is a participating policy. In an unfortunate event, the said nominee would receive full sum assured along with vested bonus, plus regular guaranteed survival benefits as per the original schedule. Key Benefits Guaranteed Payment at regular payments: When the child attains 18 yrs of age, the parent/guardian will receive:

Age 18 yrs 19 yrs 20 yrs 21 yrs

Guaranteed benefit Payment 25% of sum assured 25% of sum assured 25% of sum assured 25% of sum assured + vested bonus

One has the option to receive the sum assured in a single instalment along with the vested bonus. One can exercise this option by intimating the SBI life at least 3 months prior to the date on which first survival benefit installment is due. *Vested Bonus is the amount of bonus accrued till date, under the policy.

Security for the family In an unfortunate event during the term of the plan, the childs future remains secured in three ways: Educational Needs: Sum assured is payable in 4 annual instalments of 25% each after the child attains 18 years of age. This ensures that the childs higher education needs are met. Immediate payment: The nominee receives the sum assured along with the bonus declared until that date. All Future basic premiums need not to be paid: This ensures that the family is not financially burdened in ones absence.

Attractive optional Benefits-Riders The SBI Life Scholar-2 offers the same riders that are provided by the SBI Life Money back policy except the pure term rider.

Rider Exclusions, the additional exclusions and the Tax benefits are the same as discussed earlier in SBI Life Money Back.

Who can avail of this plan? Parents/guardians between 18 and 60 years of age, with child between 0 and 15 years of age can purchase this policy. Maximum age at maturity of the parent/guardian is 70 years.

Other plan details: Minimum sum assured is Rs 50,000 and maximum Rs. One Crore (in multiples of Rs. 10,000) The premium payment term depends on the age of the child and ends when the child attains 18 years of age. The policyholder is covered till the child attains 21 years of age.

Premium Payment mode: There are 2 options to choose from: Regular premium payment Mode: Yearly, half-yearly, quarterly and premium mode are available by giving standing instructions. monthly

Single premium payment Mode: One time premium payment for the selected term at the commencement of the policy.

Additional Advantages Women get a special rebate on the base premium amount Attractive rebate on a high sum Assured. 15 days free look period.

4.1.2 ULIP Plans

A unit-linked insurance plan (ULIP) is a type of life insurance where the cash value of a policy varies according to the current net asset value of the underlying investment assets. It allows protection and flexibility in investment, which are not present in other types of life insurance such as whole life policies. The premium paid is used to purchase units in investment assets chosen by the policyholder.

In India investments in ULIP are covered under Section 80C of IT Act. However, the concept of having an investment e governed by the Insurance Regulatory and Development Authority (IRDA). Unit Linked Insurance Plan (ULIP) provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. ULIP is life insurance solution that provides for the benefits of protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV). ULIP came into play in the 1960s and is popular in many countries in the world. The reason that is attributed to the wide spread popularity of ULIP is because of the transparency and the flexibility which it offers. As times progressed the plans were also successfully mapped along with life insurance need to retirement planning. In today`s times, ULIP provides solutions for insurance planning, financial needs, financial planning for childrens marriage planning also can be done with this. Unit Linked Insurance Plan - is a financial product that offers you life insurance as well as an investment like a mutual fund. Part of the premium you pay goes towards the sum assured (amount you get in a life insurance policy) and the balance will be invested in whichever investments you desire - equity, fixed-return or a mixture of both. Investments in ULIP is covered under Section 80C. Unit-linked insurance plans, ULIPs, are distinct from the more familiar with profits policies sold for decades by the Life Insurance Corporation. With profits policies are called so because investment gains (profits) are distributed to policyholders in the form of a bonus announced every year. ULIPs also serve the same function of providing insurance protection against death and provision of long-term savings, but they are structured differently. In with profits policies, the insurance company credits the premium to a common pool called the life fund, after setting aside funds for the risk premium on life insurance and management expenses. Every year, the insurer calculates how much has to be paid to settle death and maturity claims. The surplus in the life fund left after meeting these liabilities is credited to policyholders accounts in the form of a bonus. In a ULIP too, the insurer deducts charges towards life insurance (mortality charges), administration charges and fund management charges. The rest of the premium is used to invest in a fund that invests money in stocks or bonds. The policyholders share in the fund is represented by the number of units. The value of the unit is determined by the total value of all the investments made by the fund divided by the number of units. If the insurance company offers a range of funds, the insured can direct the company to invest in the fund of his choice. Insurers usually offer three choices an equity (growth) fund, balanced fund and a fund which invests in bonds. In both with profits policies as well as unit-linked policies, a large part of the first year premium goes towards paying the agents commissions. In addition to the three endowment policies discussed above, I also undergone the study of two major ULIP policies that SBI life markets at present. These are illustrated as follows:

1. Smart Performer (Smile More):

Key Benefits of Smart performer Guarantee at maturity based on the highest daily NAV during the first seven years. Higher than the highest guaranteed NAV, on maturity. Enjoy the best of both words-guarantee and market upside through the unique plan offerings of Secure Plan and Secure n Grow Plan. Convenience through Single Premium or shorter premium paying term (PPT) of 5 years. Life insurance Coverage with minimum sum assured of 10 or 7 times of the annual premium (AP) Liquidity through partial withdrawal(s) Option to customise the product with Accidental death benefit An excellent investment cum Insurance Plan with attractive Tax benefits.

How does Smart Performer Work? This product is split into 4 phases. Subscription phase will be first 6 months period from the launch date, during which new policies will be issued. Premium payment phase will begin from the first premium paid and continues for next 5 years from the end of subscription phase for a limited premium payment term (LPPT) Option while for a single payment the premium shall be paid at inception. NAV built up phase will last for 7 years from the date of launch. The last 3 years of policy term will be called as Accumulation Phase. The maturity date shall be at the end of 10 years from the launch date.

The premium contributions made by the policy-holder, net of premium Allocation charges are invested in the plan Options- Secure Plan or Secure N Grow Plan, as chosen . Under Secure N Grow Plan one continues to enjoy the gains through Automatic Rebalancing facility. One also has the choice to have added protection by choosing the Accidental death benefit option. The premium for accidental death benefit will be charged by cancellation of units of your funds. The guaranteed maturity NAVs will pertain to the Daily Protect Fund only. The guaranteed maturity NAV will be offered by SBI Life which will be 5% more than the highest daily NAVs, recorded during the first 7 years from the date of launch of the product. Maturity benefits On completion of policy term, Maturity value will be paid to the policyholder. The Maturity value for the Daily Protect Fund will be calculated based on NAV which is higher of: Prevailing NAV as on date of maturity OR Higher than the highest guaranteed NAV: There will be an increment of 5% to the highest NAV achieved during the first seven years under the Daily Protect Fund. The guarantee will be available only if all the due premiums have been paid. In addition, if there are any units in the index fund, the fund value of such units, calculated at the prevailing NAV would also be added in order to arrive at the maturity value.

Death Benefits The Death Benefit is payable only when the policy is in force. In case, the life insured is a minor, we will pay the higher of fund value or sum assured subject to a minimum of 105% of the total premiums paid at the time of death. In case, the life insured is a minor, the SBI life will pay the higher of fund value or sum assured subject to a minimum of 105% of the total premiums paid at the time of death. Accidental death benefits: The Accidental death benefit would be payable on the death of life assured due to accident where the term accident is as defined below: Accident is defined as An event caused solely and directly by violent, unexpected and external means resulting in bodily injuries, of which there is evidence as a visible confusion or wound on the exterior of the body. The benefit is payable in lumpsum. Partial Withdrawals: SBI Life gives flexibility to withdraw your money from the 6th policy year onwards or on attainment of age 18 by the Life assured whichever is later. One can make the partial withdrawal per policy year, which is free of cost. Subsequent to a partial withdrawal at any time during the policy term, if the Fund value is not sufficient to recover the charges, the policy will be terminated immediately and the fund value without deductions of any charges will be paid to the customer. All rights and benefits under the policy will automatically cease thereafter.

Plan Options One can invest in any of the options mentioned below: 1. Secure Plan: The entire premium (net of allocation charges) paid is invested in the Daily Protect Fund and the customer will get a return based on the performance of this fund and the underlying guarantee. 2. Secure N Grow Plan: Out of the entire premium that is paid, 80% would be allocated to the Daily Protect Fund and the remaining 20% would be allocated to the index fund, to give the chance for higher participation in equity. Automatic rebalancing Investments Funds
Assets Equity & Equity Related Instruments Debt & money instruments

Daily Protect Fund: the objective of this fund is to provide NAV Protection.
Minimum 0% Maximum 100% Risk profile Low to medium

0%

100%

Low to medium

Assets Equity

Index Funds: This tracks closely the Nifty Index.

Minimum 90% 0% Maximum 100% 10% Risk Profile High High

Cash & Money Market Instruments

Eligibility Criteria
Age at Entry Age at maturity Plan Type Policy Term Premium Frequency Premium paying term (PPT) Minimum: 9 Yrs Maximum: 75 yrs Limited Premium Paying Term/Single Premium 10 Yrs Single/Yearly/ Half-Yearly/Quarterly/ Monthly LPPT- 5years Single Premium-One Time payment at policy Inception Maximum : 65 yrs

Premium Range (*100) For LPPT: Yearly Half-Yearly Quarterly Monthly

Minimum

Maximum

50000 44000 36000 20000

No Limit No Limit No Limit No Limit No Limit Max Age up to 60 yrs Age 61 yrs or above

For Single Premium 60000 Sum Assured Premium Mode Min Age Below Age 45 or 45 yrs Above

Limited Premium Single Premium

10*AP 1.25*SP

7*AP 1.25*SP

20*AP 5*SP

7*AP 1.25*SP

AP refers to Annualised Premium SP refers to Single Premium General Exclusions: The general exclusions, like that of suicide and the Exclusions for Accident Benefit are similar to those mentioned in the earlier policies. Eligibility for Accidental Death Benefit Option:
Age at Entry Age at Maturity Benefit Amount Range Minimum:18 yrs Maximum: 69yrs 25000 to the sum assured chosen under this plan Maximum:65 yrs

2. Smart Scholar (Give wings to your childs dream):

Life begins Afresh when one becomes a parent. It is a joy one has never felt and a feeling one has never experienced. And when the child takes the first step, nothing seems more blissful. With this divine happiness comes a new sense of responsibility thats close to the parents heart. Every parent want to make his/her childs life a bed of roses or a tender cushion SBI Life understands the needs and provide its customers with a unique, flexible and allencompassing solution- SBI Life- Smart Scholar Plan. Now, one can secure the childs future by gaining from the financial markets Why to take Smart Scholar? To secure the childs future by gaining from the financial markets and much more: Dual Protection for the family, in case the policy holder is not around i. ii. Payment of base sum assured and Inbuilt Premium payer waiver benefit to ensure continuance of the policy

In addition, Accident benefit which includes Accidental death benefit & Accidental total and permanent disability benefit , is an integral part of the plan. Free allocation of units by way of regular Loyalty Unit Additions, giving periodic boosts to the investments. Twin benefits of market linked and insurance benefits. Flexible Options to meet the changing requirement. Liquidity through Partial Withdrawal(s).

What is Smart Scholar Plan? It is a unit linked child cum life insurance plan available for parents (life assured) who have a child aged between 0-17 years. One can pay premiums for a limited period whereas the policy benefits would continue till the child becomes an adult. The money can be invested in any of the funds as per the choice and risk appetite. At the end of the term the accumulated Fund Value can be used for the childs higher education, marriage, financial security or anything else, while withdrawals facility helps to meet unplanned expenses. Protection for the childs future in the parents absence In case of the parents unfortunate death due to any reason other than accident: Benefit 1: The SBI Life pay a lump sum benefit equal to maximum of sum assured and 105% of all the basic premiums paid as on the date of intimation of death claim. If on the date of intimation of death, the sum assured is less than 105% of all premiums paid, the amount in excess of the sum assured will be paid from the policy holder Fund by disinvestment of units. Benefit 2: The SBI Life continues to pay the future premium(s) on the parent behalf and the accumulated Fund Value will be paid at maturity.

In case of the unfortunate accidental death or accidental total and permanent disability, The SBI Life pays the additional benefit equal to the accidental sum assured. However, the accidental death benefit & Premium Payer waiver benefit are not available in the single premium policies. Loyalty Additions, by way of Free allocation of units: During the term of the policy loyalty units would be given for in-force policies on completion of specific durations. Loyalty Additions depend on term of the policy. The loyalty addition at relevant policy year end will be equivalent to 1% * (Average Fund Value over the 1st day of the last 24 policy months)

The Loyalty Addition will be offered for all the policy terms irrespective of premium frequencies. The same will be added through allocation of units at the end of relevant policy years as mentioned in the above chart. Loyalty Additions will continue in case of continuance of the policy after the death of the Life Assured. Loyalty additions will continue in case of continuance of the policy after death of Life Assured. Loyalty additions once allotted shall remain attached till the remaining policy term.

Eligibility Criteria

Age at entry: Parent (Life assured): 18 to 57 years Child: 0 to 17 years Age at maturity: Parent (Life assured): Maximum:65 years Child: 18 to 25 years. Plan type: Limited Premium up to the policy term/ single premium Policy Term (PT): 8 years to 25 years. Premium Frequency: Single/ Yearly/ Half-yearly/quarterly/Monthly

*Monthly mode is available only through Electronic Clearing System (ECS) or Standing Instructions (where payment is made either by direct debit of bank account or credit card).

Premium Paying term (PPT): Single premium OR 5 years to 25 years

Premium range
Plan Type Single Premium Frequency Single Minimum 75000 Maximum No limit

PPT greater than or equal to 8 years

Yearly Half-yearly Quarterly Monthly

24000 16000 10000 4000 50000 25000 12500 4500

No Limit

PPT 5 years to 7 years

Yearly Half-yearly Quarterly Monthly

No Limit

Sum assured Range

Minimum Age Below 45 yrs Higher of(10*AP)

Age 45 yrs or above 7*AP

Maximum Age below 45 yrs 20*AP

Age 45 or Above 20*AP

Limited Premium Up to Policy term Single Premium

Or (0.50* Term*AP) 1.25* Single Premium

5*SP

1.25*SP

Benefits of Smart Scholar plan: I. II. In the event of unfortunate death of life assured, a lump sum benefit equal to higher of the sum assured or 105% of all premiums paid till date of death will be payable. In the event of death of child, no sum assured is payable. Life Assured will inform the company regarding the event. In such a case he/can either continue the policy or terminate the contract. In case of termination of contract, the Fund Value will be payable. If both the life assured and the child die during the term of the policy, the policy will be automatically terminated and all due benefits will be paid along with the fund value.

III.

Maturity Benefit: On completion of the policy term, Maturity Benefit i.e The fund value shall be paid to beneficiary in a lump sum or as per settlement option, if chosen. The beneficiary will be: The policy holder if she/he survives OR Child, in case of death of the life assured during the policy term.

Additional in built benefits: These benefits are not available in the Single Premium Policies. 1. Accident benefit: This in-bulit benefit provides an additional benefit for Accidental death or accidental total permanent disability. In this benefit, the Accident sum assured is equal to the base sum assured, subject to an overall cap of Rs. 50 lakhs. This cap of Rs. 50 lakhs pertains to the total sum assured under all policies with SBI Life for accidental death & accidental total permanent disability benefit on the life. Accident Sum assured will remain constant during the policy term. In respect of accidental death, the amount payable is in lump sum, whereas for accidental total permanent disability, accident sum assured will be paid in 10 equal annual instalments. Accidental Death should occur within 120 days of the date of accident, solely and directly due to injuries and independent of other causes. In case of accidental total permanent disability benefit the permanence of the disability will only be established 6 months following the date of the disability. This benefit shall be payable only once, i.e, in the event of death or disability whichever occurs first. In case of claim towards Accidental total permanent disability being accepted, Accident benefit will cease and no charges towards the same will be deducted from the fund. However, the policy will continue with basic life benefit and the policy holder would continue to pay all the due premiums thereafter. 2. Premium Payer Waiver Benefit (PPWB): There is also an in-built Premium Payer Waiver Benefit under this product whereby SBI Life Insurance Company will pay all the future premiums at respective future premium dates. Subsequently on maturity the child will be entitled to the fund value to meet his/her needs. In case of death of child the Premium Payer Waiver benefit will cease and no further charge will be deducted. If the child dies subsequent to the death of the Life Assured, the discounted value of remaining future premiums are paid to the legal heir of life assured. General Exclusions: The suicide exclusions and the exclusions for accidental benefits are similar as discussed earlier.

4.2 Basic Marketing Strategies

The Selling of a product is directly proportional to its Marketing. How the product is presented and marketed in front of the customers decides the whole fate of the product. The product, which is offered to the customers in the way it can attract them, and in a way they want it, makes it more saleable. Hence, in short, the success of any product is dependent on its marketing strategies and techniques that are followed in order to promote the product. At SBI Life, All the specialised personnel, who are responsible for the marketing and direct or personal selling to the customers take utmost care so that the product they offer to its customers are appropriate in terms of their profiles and needs.

4.2.1 Initial Considerations (Tit- Bits):

At SBI Life, Both the CIFs as well as the Agents (including other officials who have to directly interact with the customers) are given the basic Marketing Training as it forms an important aspect of their internship. As an Intern myself, I also got a chance to learn the same that is explained in the further section. The Initial Considerations that must be kept while dealing with the customers are illustrated as follows: 1. Since the basic products of the SBI Life are mainly the Insurance Products, it is of utmost importance to make sure that whenever we are introducing the product to the customers, always the product must be introduced as a positive thing/tool/product for them. It is of usual notion that mostly the people take the insurance policies as associated to deaths or accidents or any other kind of mishappenings, and thus relate it to the negativity. 2. Always put forth the basic benefits of the insurances in front of the customer, how is it going to be beneficial for them, what additional advantages they can get after purchasing the product, what new avenues the product can offer them, etc. 3. Always be customer-centric while presenting the product to the customer for sale. In short, the CIF or the agent must think about the customer and not about himself (the basic rule of marketing) 4. Try to beautify the product as much as possible so that the customer can get easily attracted towards it. 5. One of the most important considerations lies that never put a product forward directly to the customer. Always try to create the interest of the customer in the product. 6. Use teasers to attract and increase the curiosity of the customer, introduce the product only after that. 7. We can even use Add-ons to decorate the product while introducing it before the customers.

4.2.2 Customer Analysis

After the above main considerations have been taken into account, the next big step that follows is to do the customer analysis. This is generally done at the end of the CIF or Agent of SBI Life to perceive the basic profile and to get a preconceived outline of the customer, because then it becomes easy to identify what product suits the needs and aspirations of the customers. This basically involves the following Analysis Techniques: 1. Human Life Value (HLV): This forms an important analysis technique as it is essential not only for the official but for the customer as well. The human life value refers to the worth or the value any human carries while he is alive and undergoing some kind of occupation. It is generally dependent on the age, designation at job, salary, savings, etc. The SBI Life uses their own internal software for the customer HLV calculations.

2. MAN: MAN refers to Money, Authority, Need. It is also an important technique that helps to see whether the person is customer for us or not. In this analysis, as the name suggests, Money refers to the salary or the income the person is earning, what and what kind of savings the person has, Authority refers to the ease or liquidity with which he can use the money by his own decisions, while Need refers to the eligibility or want of the person, i.e, whether he needs the insurance or not. Any person satisfying the above three criteria of MAN qualifies to be the customer.

3. Need Base Analysis (NBA): It generally involves the client homework, like exploring about his/her occupation (whether the person is involved in the services or some kind of business). Need Base Analysis also involves knowing about the savings of the customers (an indirect way to explore about the persons incomes, etc.).It also includes to get aware about whether the person is interested in the investments or not, if yes, then what kind of, and so on.

4.3 Marketing process

At SBI Life, the whole marketing procedure follows a proper hierarchy, until it reaches its final stage. The whole process can be represented as follows:

As is clear from the diagram above, initially the entire marketing strategies (related to the electronic & print media) are structurally developed at the Head Office (HO), Mumbai. The HO, Mumbai has its own Marketing Deptt. that looks after this. The whole plans as well as the strategies are made and decided at the head office only. The entire details (including marketing & Advertising material, literature, etc.) are then communicated to the Branch Managers & Area Managers in different states. At the state level, different programmes and presentations are held by the Sales managers, Area managers and Branch managers with their official teams to decide on the further course of actions. And finally after the final approvals by the heads at the state or regional levels, the final execution takes place. At SBI Life, Jammu, there is no separate marketing section for the same, however, Both the Agency as well as the Banc assurance divisions are themselves involved in the Marketing Operations. The Banc assurance performs its marketing operations mostly via the SBI Bank, on the other hand, the Agency is mostly involved in the Direct Marketing Operations. SBI Life Counters: The Banc assurance carries out its marketing plans with the help of the bank only, as its dealings are related mainly to the Bank. This involves, establishing of the special SBI Life counters at the Banks to attract the customers who generally come to the bank for their banking related activities. Such Special Counters at the banks help to extract the interest of the customers so that they come and get aware of the different products offered by the SBI Life. A similar illustration is shown as follows:

CIF at the SBI Life counter, Talab Tillo Branch

Kiosk Marketing: This also involves the kiosk marketing concept that can be seen at the different branches of the SBI Banks. Electronic Media Channel: Basically, the head office at Mumbai takes the decisions regarding how the promotions of the insurance products will be done, what kind of media (Electronic or Print) will be followed, and at what frequencies these promotional activities will be carried on. All these decisions are carried out ahead the start of the financial year. It also decides on what channels and at what schedule the advertisements (for the electronic media) will be broadcast. Generally, the ads are broadcast on the national television via the serials that are most popular among the people (like SBI Life dealt for its advertising operations with serials like Aaj tak, KBC, Big Boss, etc.). SBI Life also has dealings with the top most branded private news channels like NDTV, CNN-IBN, etc.

However, in case of Jammu, SBI Life does not market its product via advertisements in the regional channels, instead the promotions are generally done through the advertisements in the print media like regional newspapers including Daily Excelsior, Amar Ujala, etc. Hence, it is quite clear that SBI Life has established a vast network for varying out its Marketing Operations. The most active period of promotions for SBI Life is from September to March (Sept-March), it is also the time during which SBI Life does most of its business. E-Marketing: On a national and international level, the SBI Life also follows the concept of e-marketing to promote their products that they offer to their customers. The SBI Life generally partners with different online financial sites that provide the services to the customers regarding the information about different insurance companies so that the people can easily get an access to the products they want according to their needs and profiles.

Actual photos from the SBI Life Insurance Co. < Jammu>

Conclusion

Thus, at this conclusion point of my internship report, all I can say is that, it was a great experience for a fresher like me to get acquainted with and get involved in the functioning & operations of a widely networked insurance company, which in just a short span of time, has attained the undisputed success. This summer training really helped me to get the basic & real insights of the SBI Life Insurance Company and in turn the real insights of business.