A STUDY ON SBI LIFE INSURANCE

UNIT I
Introduction
SBI Life Insurance is a joint venture between State Bank of India (SBI) and BNP Paribas
Card if. SBI owns 74% of the total capital and BNP Paribas Card if the remaining 26%.
State Bank of India (SBI) is a multinational banking and financial services company based in
India. The Bank is Indias largest commercial Bank in terms of assets, deposits, profits, branches,
number of customers and employees, enjoying the continuing faith of millions of customers
across the social spectrum. It is the oldest commercial Bank in the Indian subcontinent,
strengthening the nations trillion-dollar economy and serving the aspirations of its vast
population.
SBI serving the country with over 15,000 branches in India and 190 foreign offices, 5 banking
subsidiaries, other non-banking Indian and foreign subsidiaries and also having over 2 lacs
employees. SBI has surpassed H 26 trillion in business size. SBI has over 100,000 touch points
(branches, ATMs, CSPs) that directly serve customers everywhere. But this is not just the story
of a commercial Bank, it is the story of how an inspirational India has embraced growth over the
years, and how it continues to look ahead with confidence.
SBI makes a profound contribution in driving all sectors of the Indian economy primary,
secondary and tertiary, in equal measure. It is one of Indias most familiar institutions of trust
stretching from the remotest villages to the global financial hubs.
BNP Paribas Cardif is the life, property and casualty insurance arm of BNP Paribas, one of the
strongest banks 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 Card if is one of the world leaders in creditor insurance. BNP Paribas Cardifs success is
anchored in an innovative business model. The company develops savings and insurance
products and services, and distributes them through a network of partners including banks, credit

companies, the insurance units of automobile manufacturers, telecom operators, insurance

brokers, retail chains etc. With a presence in 37 countries, BNP Paribas Card if adapts its
solutions to the needs of local customers, with its partners, skillfully integrating the distinctive
economic and cultural factors that characterize each market.SBI Lifes mission is to emerge as
the leading company offering a comprehensive range of Life Insurance and pension products at
competitive prices, ensuring high standards of customer service and world class operating
efficiency.SBI Life has a unique multi-distribution model encompassing vibrant Bancassurance,
Retail Agency, Institutional Alliances and Corporate Solutions distribution channels.
SBI Life extensively leverages the State Bank Group relationship as a platform for cross-selling
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 110,000 Insurance Advisors, offers door to door insurance solutions to customers.
Indian economy experienced a major structural change within the industrial sector as a result of
the major drive for industrial diversification in the mid-fifties. The pace of transition of the
Indian economy from an agricultural economy to an industrial one was quite slow since 1951.
This underlines a major structural shift in the Indian economy especially in service sectors and
less to the performance of the agricultural sector. Among various service sector activities banking
and insurance plays a vital role. The banking sector is a very important sector of the Indian
economy. There are many factors to examine when looking at insurance companies. Poor
fundamentals not only indicate a poor investment opportunity, but also hinder growth. Nothing is
worse than insurance customers discovering that their insurance company might not have the
financial stability to pay out if it is faced with a large proportion of claims. Hence performance
analysis is essential especially in case of insurance companies. SBI Life Insurance Company is a
giant in the insurance industry especially in Bancassurance. Hence, a study on performance
evaluation of SBI Life Insurance Company has been felt essential in this regard

MEANING OF INSURANCE
Risk-transfer mechanism that

ensures

full

or

partial financial compensation

for

the loss or damage caused by event(s) beyond the control of the insured party. Under an
insurance contract, a party (the insurer) indemnifies the other party (the insured) against a
specified amount of loss, occurring from specified eventualities within a specified period,
provided a fee called premium is paid. In general insurance, compensation is normally
proportionate

to

paid. Some types of

the

loss incurred,
insurance

whereas

(such

in life

as product

insurance usually
liability

insurance)

fixed sum is
are

an

essential component of risk management, and are mandatory in several countries. Insurance,
however, provides protection only

against tangible losses.

It

cannot

ensure

continuity

of business, market share, or customer confidence, and cannot provide knowledge, skills,
or resources to resume the operations aftera disaster.
A contract (policy) in which an individual or entity receives financial protection or
reimbursement against losses from an insurance company. The company pools
clients' risks to make payments more affordable for the insured.

BREAKING DOWN 'Insurance'

When shopping around for an insurance policy, look for the best priced package that is right for
you - prices can vary from one insurance company to the next. And make sure you know what
you want. Some individuals, for example, prefer 24-hour claims service or face-to-face contact
with an insurance representative. Also consider the claims settlement process, the amount of
the deductible and the extent of the replacement coverage. Insurance companies and the policies
they offer are not all the same, so think about more than just the price.
In India, insurance has a deep-rooted history. It finds mention in the writings of Manu
( Manusmrithi ), Yagnavalkya (Dharmasastra) and Kautilya ( Arthasastra ). The writings talk in
terms of pooling of resources that could be re-distributed in times of calamities such as fire,
floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient
Indian history has preserved the earliest traces of insurance in the form of marine trade loans and
carriers contracts. Insurance in India has evolved over time heavily drawing from other
countries, England in particular.

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.
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.
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.
An Ordinance was issued on 19 January 1956 nationalising 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 societies245 Indian and foreign insurers in all. The
LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.
The history of general insurance dates back to the Industrial Revolution in the west and the
consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a
legacy of British occupation. General Insurance in India has its roots in the establishment of
Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian
Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of
general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton of
India. The General Insurance Council framed a code of conduct for ensuring fair conduct and
sound business practices.
In 1968, the Insurance Act was amended to regulate investments and set minimum solvency
margins. The Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general
insurance business was nationalized with effect from 1 January 1973. 107 insurers were
amalgamated and grouped into four companies, namely National Insurance Company Ltd., the
New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India
Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a
company in 1971 and it commence business on January 1sst 1973.
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.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 be allowed to enter by floating Indian companies, preferably a joint venture
with Indian partners.
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 IRDA 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 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.
In December, 2000, the subsidiaries of the General Insurance Corporation of India were
restructured as independent companies and at the same time GIC was converted into a national
re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.
Today there are 28 general insurance companies including the ECGC and Agriculture Insurance
Corporation of India and 24 life insurance companies operating in the country.
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 countrys GDP. A well-developed and
evolved insurance sector is a boon for economic development as it provides long- term funds for
infrastructure development at the same time strengthening the risk taking ability of the country.

LIFE INSURANCE
Life insurance or life assurance, especially in the Commonwealth, is a contract between
an insurance policy holder and aninsurer or assurer, where the insurer promises to pay a

designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death
of an insured person (often the policy holder). Depending on the contract, other events such
asterminal illness or critical illness can also trigger payment. The policy holder typically pays a
premium, either regularly or as one lump sum. Other expenses (such as funeral expenses) can
also be included in the benefits.
Life policies are legal contracts and the terms of the contract describe the limitations of the
insured events. Specific exclusions are often written into the contract to limit the liability of the
insurer; common examples are claims relating to suicide, fraud, war, riot, and civil commotion.
Life-based contracts tend to fall into two major categories:

Protection policies designed to provide a benefit, typically a lump sum payment, in the
event of specified event. A common form of a protection policy design is term insurance.

Investment policies where the main objective is to facilitate the growth of capital by
regular or single premiums. Common forms (in the U.S.) are whole life, universal life,
andvariable life policies.

An early form of life insurance dates to Ancient Rome; "burial clubs" covered the cost of
members' funeral expenses and assisted survivors financially. The first company to offer life
insurance in modern times was the Amicable Society for a Perpetual Assurance Office, founded
in London in 1706 by William Talbot and Sir Thomas Allen.[2][3] Each member made an annual
payment per share on one to three shares with consideration to age of the members being twelve
to fifty-five. At the end of the year a portion of the "amicable contribution" was divided among
the wives and children of deceased members, in proportion to the amount of shares the heirs
owned. The Amicable Society started with 2000 members.[4][5]
The first life table was written by Edmund Halley in 1693, but it was only in the 1750s that the
necessary mathematical and statistical tools were in place for the development of modern life
insurance. James Dodson, a mathematician and actuary, tried to establish a new company aimed
at correctly offsetting the risks of long term life assurance policies, after being refused admission
to the Amicable Life Assurance Society because of his advanced age. He was unsuccessful in his
attempts at procuring a charter from the government.

His disciple, Edward Rowe Mores, was able to establish the Society for Equitable Assurances on
Lives and Survivorship in 1762. It was the world's first mutual insurer and it pioneered age based
premiums based on mortality rate laying "the framework for scientific insurance practice and
development"[6] and "the basis of modern life assurance upon which all life assurance schemes
were subsequently based".[7]
Mores also gave the name actuary to the chief official - the earliest known reference to the
position as a business concern. The first modern actuary was William Morgan, who served from
1775 to 1830. In 1776 the Society carried out the first actuarial valuation of liabilities and
subsequently distributed the first reversionary bonus (1781) and interim bonus (1809) among its
members.[6] It also used regular valuations to balance competing interests.[6] The Society sought
to treat its members equitably and the Directors tried to ensure that policyholders received a fair
return on their investments. Premiums were regulated according to age, and anybody could be
admitted regardless of their state of health and other circumstances.[8]
The sale of life insurance in the U.S. began in the 1760s. The Presbyterian Synods
in Philadelphia and New York City created the Corporation for Relief of Poor and Distressed
Widows and Children of Presbyterian Ministers in 1759; Episcopalian priests organized a similar
fund in 1769. Between 1787 and 1837 more than two dozen life insurance companies were
started, but fewer than half a dozen survived. In the 1870s, military officers banded together to
found both the Army (AAFMAA) and the Navy Mutual Aid Association (Navy Mutual), inspired
by the plight of widows and orphans left stranded in the West after the Battle of the Little Big
Horn, and of the families of U.S. sailors who died at sea.
Types of Life Insurance in India[edit]
Life insurance products come in a variety of offerings catering to the investment needs and
objectives of different kinds of investors. Following is the list of broad categories of life
insurance products:

Term Insurance Policies

The basic premise of a term insurance policy is to secure the immediate needs of nominees or
beneficiaries in the event of sudden or unfortunate demise of the policy holder. The policy holder
does not get any monetary benefit at the end of the policy term except for the tax benefits he or
she can choose to avail of throughout the tenure of the policy. In the event of death of the policy
holder, the sum assured is paid to his or her beneficiaries. Term insurance policies are also
relatively cheaper to acquire as compared to other insurance products.
Money-back Policies
Money back policies are basically an extension of endowment plans wherein the policy holder
receives a fixed amount at specific intervals throughout the duration of the policy. In the event of
the unfortunate death of the policy holder, the full sum assured is paid to the beneficiaries. The
terms again might slightly vary from one insurance company to another.
Whole life policy
A whole life insurance plan covers the insured over his life. The primary feature of this product
is that the validity of the policy is not defined so the policyholder enjoys the life cover
throughout his life.[citation needed]
Unit-linked Investment Policies (ULIP)
Main article: Unit-linked insurance plan
Unit linked insurance policies again belong to the insurance-cum-investment category where one
gets to enjoy the benefits of both insurance and investment. While a part of the monthly premium
pay-out goes towards the insurance cover, the remaining money is invested in various types of
funds that invest in debt and equity instruments. ULIP plans are more or less similar in
comparison to mutual funds except for the difference that ULIPs offer the additional benefit of
insurance.

Pension Policies

Pension policies let individuals determine a fixed stream of income post retirement. This
basically is a retirement planning investment scheme where the sum assured or the monthly payout after retirement entirely depends on the capital invested, the investment timeframe, and the
age at which one wishes to retire. There are again several types of pension plans that cater to
different investment needs. Now it is recognized as insurance product and being regulated by
IRDA.

CLASSIFICATION OF LIFE INSURANCE

Whole life insurance policy is defined as an insurance in which the insured person pays the
premium in the installment basis for full duration of his/her life. After the death of insured,
his/her nominee receives the insured amount. There are 3 types of whole life insurance policy
Ordinary whole life insurance policy. In this policy, insured person has to pay the premium to
his/her concerned insurance company till his/her death. The insured person cant utilize the
insured amount because this amount will be returned after his/her nominee
limited premium whole life insurance policy: Under this policy, the insured person has to pay
the premium for limited time and the insured amount will be returned after the death of insured
person to his/her nominee
Convertible whole life insurance policy: It is that type of policy which can be converted to
endowment life insurance policy after a certain time. It is suitable for those people who have
lower income at present and they hope for increment in income in the near future.
Endowment life insurance policy:
It is defined as that type of insurance in which the insured person pays the premium for a certain
time and after certain time they receive insured amount. If she/he dies before the insured period
his/her nominee receives the insured amount. Generally endowment life insurance policy is done
for 10, 15 20 years and more. The insured has to pay the premium either till the end of insured
period or till the death of insured which ever is earlier.

Ordinary endowment life insurance policy: Under this policy, time will be fixed foe a certain
period and insured person have to pay either till the end of insured period or till his/her death. If
he/she dies earlier before insured period, his/her nominee receive the amount. And if she/he is
alive then himself/herself go and receive the amount.
Joint endowment life insurance policy: In this policy, two or more persons are involves s the
insured person .the premium amount should be paid till the insured persons death like in
ordinary endowment life insurance policy.
Double endowment life insurance policy: Under this policy, the insured person receives double
of the insured amount is she/he is alive till the end of the maturity time. If she/he dies before the
insured person his/her nominee receive only single insured amount.
Pure endowment life insurance policy: Under this policy, insured person receive the insured
amount after the certain time when he/she us alive. If the insured person dies before the end of
maturity time the insurer becomes free from its liability.
Term life insurance policy
Straight term life insurance policy: Under this policy premium is paid as lump sum money. The
insured time maturity period is not more than 2 year. Therefore it is known as temporary term
life insurance policy. If the insured person dies before the insured period his/her nominee
receives the insured amount. But if he/she is alive then he/she doesnt receive anything.
Straight term life insurance policy: Under this policy premium is paid as lump sum money.
The insured time maturity period is not more than 2 year. Therefore it is known as temporary
term life insurance policy. If the insured person dies before the insured period his/her nominee
receives the insured amount. But if he/she is alive then he/she doesnt receive anything.
Renewal term life insurance policy: Under this period the insurance can be renewed after the
maturity of the insured period. Second rate of premium may be higher than the first rate of
premium. Because the age of the person also increases with renew of insurance. It doesnt need a
new health report or any sort of gent report for renewal.

Convertible term life insurance policy: It is generally done for 5, 6 or 7 years like term life
insurance policy. If the insured person want to convert this insurance policy in whole life
insurance policy and endowment life insurance policy it can easily be converted.
On the basis of profit distribution
With profit policy: Under this policy the insured person receive the insured amount with the
profit of insurance company. In other words if the insured person dies before the term of insured
period his/her nominee receive only insured amount not the profit o the company. But if he/she is
alive then with the amount of premium the portion of profit of the insurance company is also
received by the insurer.
Without profit policy: Under this policy the insured person doesnt receive the insured amount
with the profit of insurance company .in other words if the insured person dies before the term of
insured period or remains alive till the end his/her nominee r himself/herself receive only insured
amount not the profit o the company.
On the basis of number of insured:
Single life insurance policy: Under this policy there is only one individual as a insured person.
In other words, the life of a single person is done insurance. Single life insurance policy is
applied in whole life insurance policy, endowment life insurance policy and term life insurance
policy.
Joint/ multiple life insurance policy : Under this policy two or more than 2 person are involved
as husband and wife, partners of partnership firm and other people may conduct the joint life
insurance policy. It may be applied in whole life insurance policy and endowment life insurance
policy.
On the basis premium payment:
Single premium life insurance policy: Under this policy, insured person pay the premium to the
insurance company at the beginning in the lump sum amount. There is no tension to pay the
premium timely later on. It is mostly used in that case when a person wins a lottery.

Regular premium life insurance policy: under this policy the insured person pay the premium
up to his/her death for a certain time. In other words, the insured person pays the premium to
insurance company regularly or timely.
Limited payment premium life insurance policy: under this policy the insured person pay the
premium up to his/her death for a certain time. The time is however less than the insured period.
On the basis of payment of insured mount :
Lump sum payment policy: under this policy the insured person receives the total insured
amount. Even all premiums have not been paid total insured amount is received by the nominee
of the insured person and if the total amount has been paid she/he receives the total insured
amount himself or herself.
Installment payment policy: under this policy, the insured person and nominee receive the
insured amount in the installment basis. It is useful to those individual who are old and lump sum
mount may be misused.

ROLE OF ACTUARIES IN SBI LIFE INSURANCE

1. Facilitated Education for Underprivileged Children
Contributed towards the academic support of 69 girls from Nanhi Kali at Hyderabad which
included cost of tutors, training and material support like uniform, stationery and notebooks.
Organized Project Unnati at Lucknow along with Smile Foundation and supported the
educational needs of 25 young girls.Contributed towards the educational requirement of children
from Adruta Foundation at Odisha like note books, stationary items. Facilitated education to 5
underprivileged girls of Auxillium Ashalaya, an orphanage at Guwhati.Contributed towards the
sports event which were participated by cancer afflicted children, orphaned and street children
organized by The Powai Bengali Welfare Association, Mumbai. Distributed uniforms, bags and
shoes to 45 girls to an orphanage - Unique Homes for Girls, Jalandhar. Unique Home is run by a
trust named after Bhai Ghanayya Ji, a disciple of Guru Gobind Singh. Donated water coolers to
10 Ladli Schools for Girls in Delhi. Provided financial support to HIVE India, Kolkata a
premier socio-economic development organization for child education,adult literacy,
rehabilitation of homeless, orphans, street children and women in general.
2. Supported Underprivileged Citizens
Contributed towards procuring wheel chairs, ceiling fans, plastic chairs, medicine, etc of the
missionary - Prem Daan. It is a
home for destitute run by Missionaries of Charity Kolkata.
3. Supported Medical and Health Cause
Contributed to Nanritam towards procuring computers, servers for Hospital Management
software, which would enable
early detection & help reduce the no. of cataract blindness and thus prevent visual impairment.
Donated a Mobile Care Unit (ambulance) of Memorial Seva Pratisthan. The NGO manages
Rural Eye Hospital at Nadia (WB),
and organizes camps at villages free of cost.

4. Towards Empowering Women

Contributed towards the support of the artisans and women entrepreneurs of Women Moksha
organisation by providing
them a marketing platform and have a direct access to the buyers by sponsoring the stalls at
Abahoni 2014 - The Artisans
Crafts Bazaar 2014 & Food Festival.
5. Towards Public Safety Awareness Campaign
Organized a Public Safety Awareness Campaign along with Southern Railways in 8 railway
stations of South Tamil Nadu.
Employees of SBI Life, Madurai office volunteered along with railways staff and campaigned
slogans of Railway Safety
Awareness.
6. Towards Environmental Related Cause
SBI Life in association with GrowTrees.com plants a tree on the occasion of every employees
birthday. The trees are planted
at various reforestation areas like Kanha National Park at Madhya Pradesh, periphery of Satkosia
Gorge Wildlife Sanctuary,
Angul, Orissa etc and are maintained at a high survival rate.
Customer Service Enhancements
Post Issuance Welcome Calls: In our endeavour to ensure that the policy is issued as per the
customers need, we started
post issuance welcome calls. The basic objective of the post issuance welcome calling call was to
ensure that the policy holder
understands the policy terms and benefits of the policy purchased by him.
SBI Lifes Mobile Application - Easy Access: SBI Life launched Easy Access, an application
designed for mobile phone users to
access almost all the services currently available through the internet on their fingertips. The

various functionalities available in

this application are:
MY POLICY: Where user can avail services like view policy, request forms, information about
renewal premium, query
resolution and feedback.
CONTACT US: Provides the user multiple options to communicate with SBI Life through toll
free numbers, e-mail or write to
SBI Lifes corporate office.
PLANS (Products): User can view information about all existing or new products of SBI Life.
PREMIUM CALCULATOR (Benefit Illustrator): User can select the product to calculate
premium for the insurance plans
offered by SBI Life
L atest News: User can see the latest news about SBI Life.
Twitter & Facebook: User can visit SBI Lifes profile on Facebook and Twitter
Go Green Project: In our effort to reach to the customers seamlessly, SBI Life launched the Go
Green project. On signing up for e-statement, the policyholders are eligible to receive all
communication related to their policy on their registered email id.This ensures the confirmed
delivery of all policy related information at the policy holders email id without chances of
getting misplaced and also contributes to the green initiative by avoiding a lot of bulk printing.
Surrender Prevention Campaign: Insurance contracts are long term in nature and the customer
reaps the maximum benefit by keeping his policy in force for the entire duration of the contract.
Keeping this in mind, SBI Life launched the Surrender Prevention campaign, aimed at educating
the customer about the benefits of regular premium payment and keeping policies in force. The
drive for surrender prevention across regions, together with continuous monitoring and follow-up
resulted in around 16.8% surrender prevention where customers had made up their mind to exit
and in the process, avoiding about H 350.42 Crores erosion of the Assets under Management
(AUM).

UNIT IV
PRODUCT PROFILE
SBI LIFE INSURANCE

Vision
To be the most trusted and preferred life insurance provider.

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 thereby becoming a model Life Insurance Company in India in
the post liberalization period.

Values
Trustworthiness | Ambition | Innovation | Dynamism | Excellence

State Bank of India (SBI) is a multinational banking and financial services company based in
India. The Bank is Indias largest commercial Bank in terms of assets, deposits, profits, branches,
number of customers and employees, enjoying the continuing faith of millions of customers
across the social spectrum. It is the oldest commercial Bank in the Indian subcontinent,
strengthening the nations trillion-dollar economy and serving the aspirations of its vast
population. SBI serving the country with over 15,000 branches in India and 190 foreign offices,
5 banking subsidiaries,other non-banking Indian and foreign subsidiaries and also having over 2
lacs employees. SBI has surpassed H 26 trillion in business size. SBI has over 100,000 touch
points (branches, ATMs, CSPs) that directly serve customers everywhere. But this is not just the
story of a commercial Bank, it is the story of how an aspirational India has embraced growth
over the years, and how it continues to look ahead with confidence.SBI makes a profound
contribution in driving all sectors of the Indian economy primary, secondary and tertiary, in
equal measure. It is one of Indias most familiar institutions of trust stretching from the remotest
villages to the global financial hubs.BNP Paribas Cardif is the life, property and casualty
insurance arm of BNP Paribas, one of the strongest banks 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.BNP Paribas Cardifs success is anchored in an innovative business model. The
company develops savings and insurance products and services, and distributes them through a
network of partners including banks, credit companies, the insurance units of automobile
manufacturers, telecom operators, insurance brokers, retail chains etc. With a presence in 37
countries, BNP Paribas Cardif adapts its solutions to the needs of local customers, with its
partners, skillfully integrating the distinctive economic and cultural factors that characterize each
market. SBI Lifes mission is to emerge as the leading company offering a comprehensive range
of Life Insurance and pension products at competitive prices, ensuring high standards of
customer service and world class operating efficiency.SBI Life has a unique multi-distribution
model encompassing vibrant Bancassurance, Retail Agency, Institutional Alliances and
Corporate Solutions distribution channels.

SBI Lifes Awards and Recognition

Awarded by The Economic Times, Brand Equity and Nielsen Survey.
Most Trusted Brand identifies brand which posses the most special ingredient - the
Consumers Trust.
Runners Up for the Best Life Insurance Provider 2013 Awarded by Outlook Money
The Outlook Money Awards recognise excellence in Financial Services.
Under-served Market Penetration Award 2013 (Private Sector) Awarded at the Indian
Insurance Awards 2013
SBI Life won this award for being pro-active in terms of reaching out to customers in
relatively underpenetrated states and regions in India.
Claims Service Company of the Year Award 2013 (Private Sector) Awarded at the Indian
Insurance Awards 2013
SBI Life has demonstrated effective and speedy claims settlement while maintaining high
levels of client service, satisfaction and focus in handling claims in FY 2012-13,setting up a
benchmark for the industry to follow.
Global Performance Excellence Award 2013 Awarded by Asia Pacific Quality
Organisation (APQO)
SBI Life has achieved a unique distinction by featuring amongst the nine organisations
from six Asian and Pacific Rim Countries to be recognised as exemplary companies of world
class quality performance.
Digital Inclusion Skoch Awards 2013 Awarded by the Skoch Group
SBI Life received the award for the project Enabling partners to collect premium
through Electronic Fund Transfer - Cash & Direct Debit. The award recognizes best practices in
the fields of governance, finance,banking, technology, corporate citizenship, economics and
inclusive growth.
Communication Excellence Award 2013 at the 4th CMO Asia Awards
Represented by 25 countries across Asia, CMO Asia Awards recognises organisations for
displaying leadership in strategic communication combined with consistent innovation.

Recognised amongst Top-50 Great Places to Work by the Great Places to Work Institute
Survey 2013
SBI Life was ranked 36th amongst Great Places to work in India. Indias Best Companies
to Work for Study 2013, the largest study in the country on workplace culture, attracted
participation from around 550 organisations spanning across 22 industries.
The Most Admired Life Insurance Company in the Private Sector & the Best Life
Insurance Company in the Private Sector Awarded at the BFSI (Banking Financial
Services and Insurance) 2014 Awards
The BFSI Award recognises the best performances of various Banking, Finance and
Insurance Services. The award focuses on best of the best practices of the BFSI industry based
on the strategy, security, customer service and the future technology challenges and innovations.
Dream Company To Work For 2014 in Private Insurance Dream Employer of the Year
2014 Ranked 4th & Employer Branding Award 2014 for Talent Management - Awarded
by the World HRD Congress
W orld HRD Congress is the largest rendezvous of HR Professionals from across the
world. It recognizes the organisations with best HR Practices across the globe.
Training Provider of the Year Award Awarded at the Asias Training & Development
Excellence Awards 2013
The award is conferred by World HRD Congress and endorsed by Asian Confederation of
Business.

Types of Life Insurance Policies in India

The life insurance sector is one of the fastest growing finance related segments in India. There
are many different products, each with a variety of offerings. Right from fueling investment
needs to meeting different financial goals, they come with many objectives for the investor. Here
are a few common types of covers, including whole life and term insurance policy.
1.Endowment Policy
There is a savings quotient linked to such policies. They come with a specified maturity period,
as decided by the insurer. On the occurrence of any unforeseen event of the death or permanent
disability, during the tenure of the policy; the sum assured will be received by the said
beneficiaries to the policy. If the insured survives the term of the policy, the agreed maturity
benefits become payable.

2.Term Insurance
Term insurance policy offers coverage only for a set period of time. On the occurrence of death
or permanent disability during the tenure of the plan, the beneficiaries will be paid benefits to
cover income loss or unpaid debt. Disability can be both partial and total, depending on the type
of plan. However, if the insured survives the term of the plan, no such benefits are paid.

3.Money or Cash Plans

In these types of plans, a portion of the agreed and payable sum assured is returned to the insured
person by the insurance company. This payment is made on a periodical basis, in the form of a
survival benefit. When the term expires, the outstanding sum assured is paid as a maturity
benefit. However, life risk is covered for the entire amount of the agreed sum assured, even if a
portion of the benefits has already been paid.

4.Whole Life Insurance

Unlike a term insurance policy, whole life plans strive to give you lifelong protection. Such
cover comes with death benefits, meaning your family can continue to be financially stable after
your death. It also comes with maturity benefits, after the expiry of the term. Most people use
this type of policy to create an inheritance or estate for their children.
5.Childrens Policies
These plans can be taken in the name of the child or the parent. However, it is only for the
benefit of the child. This helps parents mobilize finances when the child reaches a particular age
or stage of life.
6.Annuity Plans
Just like a term insurance policy, this type of insurance aims at covering income loss. After
retirement, an individual is cut-off from a regular source of income, and any benefits, like
gratuity or provident funds, run the risk of getting exhausted quickly. Pension is a model
provision for safe-guarding retirement, as the benefit is like a regular income. So, it is best to get
pension plans in order to ensure financial independence after retirement.

The Company has registered a strong and consistent performance during FY 2013-14. The key
financial parameters of the Company are as follows:
Maintained its No. 1 position amongst private life insurers on total New Business
Premium (NBP) basis, achieving highest NBP of H 5,066 crores with a market share of 17.2%
amongst private players;
Registered a strong growth of 14% in NBP (Regular business) standing at H 2,998 crores
in FY 2014 as against H 2,618 crores
of FY 2013;
Demonstrated a robust growth of 17.7% in its Individual new business APE portfolio;
Collected a Renewal Premium of H 5,673 crores during the FY 2014 from various
distribution channels;
Continued to show a steady growth both in business and earnings. The Net Profit of the
Company grew by 19% and stands at H 740 crores during the year ended March 31, 2014 as
against H 622 crores of the preceding year;
Continued to maintain one of the lowest Operating Expense (excluding service tax on
ULIP charges) to Gross Written Premium ratio (the OPEX Ratio) at 10.28%, amongst private
sector life insurance companies;
Based on the Companys overwhelming performance during the FY 2014 in this subdued
growth phase of the industry, your Company has registered a strong growth of 13% in its Assets
under Management (AUM) to H 58,480 crores as on March 31,2014 as against H 51,912 crores
as on March 31, 2013, while the benchmark index (Nifty 50) has posted a return of 18% during
the year;
The Solvency ratio of the Company stands at 2.23 as on March 31, 2014 as against the
Regulatory requirement of 1.50, indicating the strong & stable financial health of the Company;
Based on the robust financial performance of the Company year on year, there has been no
external capital infusion during the last five financial years;
In view of Companys performance, profitability, cash flows and financial position, an interim
dividend was declared during the FY 2013-14 at 10% of equity share capital amounting to H 117
crores (including dividend distribution tax);

The Company continued to focus on its planned expansion through quality recruitment and
opening up of new branch offices. As at March 31, 2014, the Company has 762 offices, 1,10,491
Insurance Advisors (IAs) and 26,088 Certified Insurance Facilitators (CIFs) across the country as
against corresponding figures of 758 offices, 94,138 IAs and 25,160 CIFs respectively as on
March 31, 2013.
The total new business premium of H 5,066 crores comprises of:

H 1,648 crores from Retail Agency & Alternate channels,

H 1,663 crores from Bancassurance channel and
H 1,709 crores from Corporate Solutions channel
H 46 crores from Direct Business

Industry & Company Outlook

Financial Year 2013-14 was a year of stabilization for the Life Insurance Industry

considering the recently amended product

guidelines by the Regulator and sluggish economic growth. The Company and the

industry as a whole witnessed a moderate

and competitive growth in the financial year 2013-14.
Financial Year 2014-15 brings with it renewed political optimism. It is expected that the

new government will implement

effective and efficient policies and build a business friendly environment. Further, with

positive news on FDI the industry expects

to attract investment.
Further, from a business point of view companies who have well adjusted to the revised

product regulation will start reaping

the benefits this year. It will also be a year to focus on efficient use of multi-distribution

strategies.
However, year on year, SBI Life has maintained a significant lead over its closest

competitors in terms of New Business Premium

collection.
In FY 2014-15, one of the primary goals of the company is to further strengthen our

highly successful Bancassurance model

such that the channel attains a visibly dominant position in the new business portfolio.

This is to be achieved by leveraging

State Bank of Indias and its Associate Banks widespread branch network and equipping
select branches with commensurate

resources including manpower support which would result in higher cross sell

penetration.
Customer centricity remains the mainstay. Various initiatives continue to gather steam

across the board, ranging from customer

education initiatives, customer-connect campaigns, revival campaigns to ISO
certifications, product innovations etc.

(II) Regulatory Changes

The insurance Regulator, IRDA, has issued several guidelines during the year to bring more
transparency between insurer,
policyholder & Regulator.
The guidelines / regulations, issued / amended by IRDA during the year, includes standardization
of linked & non-linked product
architecture, standardization of application form, broker regulations, investment, re-insurance,
etc.
(III) Dividend
The Board, at its meeting held on March 25, 2014, had declared an interim dividend of 10% (H
1.00 per share) on the equity
shares of the Company, aggregating to H 117 crores (including dividend distribution tax).
(IV) Capital
The shareholding pattern during the year under review was in accordance with statutory
requirement. There was no capital
infusion by the promoters during the financial year 2013-14. The Authorized and Paid-up Share
Capital of the Company stands
at H 2,000 crores and H 1,000 crores, respectively. The existing Shareholders have continued to
remain committed to support
the business operations of the Company.
(V) Deposits
During the year under review, the Company has not accepted any deposits under Section 58A of
the Companies Act, 1956 read
with the Companies (Acceptance of Deposit) Rules, 1975, as amended, from the public.
(VI) Awards & Recognitions

Continuing its journey to achieve holistic excellence, SBI Life won several awards and
recognitions during the financial year
2013-14.
Ranked as Most Trusted Private Life Insurance Brand 2013, for the third successive year by
The Economic Times, Brand Equity
and Nielsen Survey;
Awarded as Best Life Insurance Provider 2013 - Runner Up by Outlook Money;
W on the Global Performance Excellence Award 2013 by Asia Pacific Quality Organization
(APQO);
Awarded at BFSI (Banking Financial Services and Insurance) 2014 Awards for The Most
Admired Life Insurance Company in
the Private Sector and The Best Life Insurance Company in the Private Sector;
W on Under-served Market Penetration Award 2013 (Private Sector) and Claims Service
Company of the Year Award 2013
(Private Sector) by Indian Insurance Awards 2013;
Awarded at World HRD Congress for Dream Company To Work For 2014 in Private
Insurance sector, also ranked 4th as the Dream Employer of the Year 2014;
Awarded with Employer Branding Award 2014 for Talent Management at World HRD
Congress;
Awarded with Training Provider of the Year Award at Asias Training & Development
Excellence Awards 2013 by World HRD Congress and endorsed by Asian Confederation of
Business;
Awarded with Digital Inclusion Skoch Awards 2013 for the project - Enabling partners
to collect premium through Electronic Fund Transfer - Cash & Direct Debit by Skoch awards;
Awarded with Communication Excellence Award 2013 at 4th CMO Asia Awards.
Received ISO 27001 Certification for Information Security Management System (ISMS)
Received ISO 9001:2008 Certification for Quality Management Systems for Planning,
Designing and Developing Training Programs
We owe these awards to the constant support and trust reposed by our Policyholders and
Stakeholders and the hard work and dedication of our work force.
(VII) Products

SBI Life has a wide range of products catering to various customer needs in the life, health,
pension, on-line & micro-insurance segment. The products are customer centric, simple to
understand and have competitive features. To maintain its competitive edge in the market, the
Company had launched six new individual products and one new group product in the financial
year 2013-14. Details of the products launched are as follows:- Individual
1) S BI Life Smart Power Insurance (UIN:111L090V01): A Unit-linked savings Plan designed
for youth
2) S BI Life Saral Swadhan+ (UIN:111N092V01): A Traditional Non-Participating Term
Insurance plan with return of premium
3) S BI Life Flexi Smart Plus (UIN:111N093V01): A Variable Insurance Participating Plan
4) S BI Life Retire Smart (UIN:111L094V01): A Unit-linked Pension Plan
5) S BI Life Smart Wealth Builder (UIN:111L095V01): A Unit-linked Savings Plan
6) S BI Life Smart Money Back Gold (UIN:111N096V01): A Traditional Participating Money
Back Plan
Group
1) S BI Life CapAssure Gold (UIN:111N091V01): A Variable Insurance Fund Based Group Plan
During the financial year, we had also modified 13 existing products and 14 existing riders based
on IRDA regulations for Linked, Non-linked and Health Products. As at March 31, 2014, we
have a total of 25 products and 14 riders.
(VIII) Customer and Partner Service Enablement
Financial Year 2013-14 marked a significant milestone in the journey towards fulfillment of the
vision To be the most trusted and preferred life insurance provider. The theme of Customer
Pratham adopted during FY 2012-13 to ensure customer delight was further enhanced with the
below mentioned initiatives adopted during the FY 2013-14.Customer Service Enhancements
Post Issuance Welcome Calls: In our endeavour to ensure that the policy is issued as per the
customers need, we started post issuance welcome calls. The basic objective of the post issuance
welcome calling call is to ensure that the policy holder understands the policy terms and benefits
of the policy purchased by him.
Additional Avenues for Premium Collection

Common Service Centers (CSCs): CSCs are set up under the National e-Governance Plan
(NeGP) formulated by the Department of Electronics and Information Technology (DeitY),
Government of India. The CSCs are service delivery points at the village level for delivery of
Government, Financial, Social and Private Sector services. Currently there are around 1,24,000
CSCs spread across the country. In order to strengthen customer convenience, SBI Life has tied
up with CSCs for collection of renewal premium. Customer can walk-in to any of these CSCs
and pay his renewal premium upto H 49,999 in cash.
Accessing of SBI Life Information through SBI internet banking account: This service allows a
State Bank Group (SBG) internet banking user, who is also a SBI Life policy holder and
registered on SBI Lifes customer portal (mypolicy), to first register & thereafter seamlessly
access his /her policy details through the SBI internet login.
Tie ups with Regional Rural Banks (RRBs): In an effort to further enhance the ease of renewal
premium payment, SBI Life entered into tie ups with several RRBs, namely, Uttarakhand
Gramin Bank, Utkal Gramin Bank and Andhra Pradesh Gramin Vikas Bank.

Customer Grievance Redressal

The Company has put in place Grievance Redressal Policy which is reviewed annually
and status update of compliance is placed before the Board/ Management. This policy document
lays down various provisions, systems and procedures to ensure prompt redressal of customer
grievances through a well defined structure.

In accordance with IRDAs Corporate Governance Guidelines, the Company has formed
a committee called the Policyholders Protection Committee with a view to address various
compliance issues relating to protection of the interests of policyholders,and also to keep the
policyholders well informed and educated about insurance products and complaint-handling
procedures.The Committee is responsible for putting in place proper procedures and effective
mechanism to address complaints and grievances of policyholders. The Committee meets
quarterly or as and when required. The Company has implemented the Integrated Grievance
Redressal Management System (IGMS) in accordance and furtherance to the Grievance
Redressal Guidelines issued by the IRDA. IGMS provides online view of customer complaints
and the related TAT (turn-around time). The IGMS also facilitates escalation of complaints,
where necessary. The policyholder can approach the Company through any medium like letter,
email, phone calls, SMS, toll free numbers or can directly approach any of the SBI Life branches
for redressal of grievance. Grievance officer has been nominated at all the branch offices,
regional offices and at the corporate office of the Company. If not satisfied with the resolution
provided by the branch, policyholder can contact the customer care desk at SBI Life Regional
Office. The policyholder can also seek redressal at SBI Life Central Processing Center with Head
Client Relationship. The contact details are provided in the policy document and on SBI Life
website.
The details of grievance disposal are as under:
22012-13
Opening Balance at the beginning of the year 11 38
Add: Additions during the year 16,062 18,686
Less: Complaints Resolved/Settled during the year (16,066) (18,713)
Complaints pending at the end of the year 7 11

Information Technology
Keeping in view the changing demands of the customers and their need for flexible service options, SBI
Life concentrated on bringing in technological innovations to increase level of conveniences of its
customers. Some of the major enhancements / initiatives are as follows:

(a) Infrastructure

As a part of Information Technology (IT) modernization a new datacenter (DC) was built with Tier III
plus standards on 3,500 Sq feet area with 1,350 sq feet raised floor that includes a 15 seat Network
Operating Center (NOC). This will greatly help increase reliability, availability and capacity scaling.
Salient features of the new DC include:

Scalability for next decade: Designed to host 52 racks with modular high density power load and
redundant cooling.
Robust & secure: High security building management system with centralized monitoring surveillance
cameras, fire detection & suppression, water leakage & electronic rodent control.
Redundancy on power supply: Two tier electric architecture with separate electrical room having
redundant path for DG power and State Electricity board supply. The challenging task of Datacenter
migration was achieved without any disruption to business.

Investments
Capital market activities for the Financial Year 2013-14 were dominated by lack of
confidence in the Rupee during the first half of the year and a diametrically opposite sentiment
emerging from favorable national election outcome in the second half.Current Account Deficit
(CAD) went to an all time high of 4.9% to GDP and as a result rupee hit a low of 68.8 against
USD.Currency and CAD issues were thankfully resolved and the Benchmark index, Sensex,
gave a return of 18.85% for the year.Sensex ended the year at 22,386 points on the back of
results of four state elections where BJP got the majority and with the hope that NDA would
emerge as a party with majority of the votes in the National Election too.In the domestic bond
markets, Yield on 10 year Government of India Bond hardened by 85 basis points to 8.81% as
Reserve Bank of India lifted the policy interest rates by 50 basis points on account of upside risk
to inflation, to anchor inflationary expectations and address the fears of the adverse impact of
tapering of quantitative easing in US. The UPA Government continued on their path of fiscal
consolidation and brought down Fiscal deficit from 5.2% of GDP to 4.5% and the Interim budget
has set target of 4.1% for FY 2014-15.
The Assets under Management (AuM) increased by 13% to H 58,480 crores as at March
31, 2014 from H 51,912 crores as at March 31, 2013. The AuM was made up of H 29,883 crores
of traditional funds (including share holders funds) and H 28,597 crores of Unit Linked Funds.
The Unit linked portfolio majorly comprises of equity funds and NAV guaranteed funds.The
performance of both traditional and unit linked funds was satisfactory with majority of funds,
equity and bond funds comfortably beating the benchmark and their respective peers.

UNIT - III
FINDINGS

Life begins at 20. Young and energetic, with dreams and aspirations for an enriching career, its
the right time that you start planning about your future. You are probably focused on earning
more to buy yourself a car, maybe save up enough money for your long yearned holiday abroad
or even have marriage plans already! With age on your side, limited financial responsibilities and
insurance available at a low cost, Life insurance can provide you financial security for the future,
letting you enjoy your financial independence. Moreover, it provides your loved ones with
resources in case of any unforeseen events.
SBI Life offers a wide range of solutions that can suits your insurance needs at this stage of life.
SBI Life Insurance always keeps you informed about latest products and services which are
beneficial to you. However, we have notice some instances where unsolicited calls / e-mails have
been made / sent by vested interests in the name of SBI Life Insurance Company Ltd. or
Insurance

Regulatory

and

Development

Authority

(IRDA).

We understand the importance of keeping your personal information secure and confidential.
Identity theft, phishing (fake) e-mails and vishing (fake) calls are threat to your financial
security.

CHECK CALL AUTHENTICITY - Any calls that solicit to get

your personal financial information like your policy no.,
password,
Do not share
your
confidential
information like password,
bank details, your
etc are
not
from SBI Life
customer-id, date of birth, credit card number, etc on e-

Insurance

mail or on a phone call, event if it is from a trusted source

like your insurer,

IRDA,
Incomeonly
Tax Department,
Bank,
CHECK E-MAIL AUTHENTICITY
- Reply to
an e-mail,
if it
Card
Company, etc
is received from the Credit
domains
- sbilife.co.in
or sbi-life.com

Account
Do not Payee
issue acheque
bearer in
or favour
blank signed
Always deposit an
of SBI cheque to anyone
Life Insurance Co. Ltd. Policy No. XXXXXXXXXXX

Do not handover renewal premium payment cash to any

entity,
except
the authorised
collection
centres (City Union
Make online transactions
only
on secured
websites
with
Bank,symbol
Karur Vysya
Online
and MP Online
https and has a padlock
ratherBank,
than AP
http
in the
address bar.

Do not handover your credit card to anyone or disclose

your CVV or PIN number to anyone

Be Vigilant on Fraudulent Practices

Cash/Cheque related frauds
Premium paid through Cash/DD/Cheque etc. to any individual posing to be a representative of
SBI Life Insurance and not in receipt of any confirmation that the amount has been accounted to
the policy by SBI Life Insurance.

Document Tampering/Signature Forgery/Incorrect Details

Proposal form/other documents submitted to SBI Life Insurance by you are tampered, incorrect
personal details and your signature has been forged.
Unauthorized Transactions
Any communication received from SBI Life Insurance related to your policy like fundswitch,
surrender etc. which was not authorized by you.
Spurious Calls
If you receive any phone calls promising bonuses, rewards etc. which was not mentioned in the
policy document.

DOS

Go through the product features or visit our website [www.sbilife.co.in] for product related
details

before

buying

any

SBI

Life

Insurance

product.

Read through the policy documents in detail and check whether the product offers the same

benefits as explained to you when the product was offered to you.

Do inform your family members about your policy document and keep the document in safe
custody.

Any discrepancy with regard to the accuracy of personal information shall be informed to us by
calling on 1800-229090 or writing to us at info@sbilife.co.in or visit your nearest SBI Life
Insurance branch

Report any unauthorized communication received by you via sms /e-mail related to your policy

Be prompt in updating your contact number /email details in our records. This will be on great
help to track all your transactions related to your policy.
Dont forget to mention your policy number when premium payment through cheque/DD is
made.
It is recommended that you pay your premiums through modes available on our website. If you
have to pay cash then do so only at SBI Life Insurance designated cash collection centers. For
more details, please click Easy Renewal Payment Options available on website
(www.sbilife.co.in)
DONTS
Be careful while handing over sensitive documents like PAN card, driving license,
passport etc to anyone. The Company never insists for original documents for any transactions.
Always refrain from issuance of blank cheques for any financial transactions related to
your SBI Life Insurance policy.

Do not share your personal information like policy number, bank account details, password,
customer-id, date of birth, credit card number, etc on e-mail or on a phone call, even if it is from
a trusted source like your insurer, IRDA, Income Tax Department, Bank, Credit Card Company
etc.

SBI Life is committed to safeguard your rights when you buy insurance and when you
submit a claim. It is essential to know what your rights are.
Right to Information about:

Your policy, your cover, how the product meets your needs and claims

settlement process

How your insurance policy works

How your premium is invested

How your savings are growing

Your policy details at any point of time

Right to Privacy:
As you have to disclose all information required by us in order to provide you the
most suitable insurance, the responsibility of keeping your information confidential
lies with us.
Right to Guidance:
You have the right to be guided to choose a product which suits your needs after
evaluating your risk based on assessment of the gap between your assets and
responsibilities.
Grace Period:
The company offers a grace period of 15/ 30 days in case you are unable to pay
your premium on time.
Free-look Period:
If you are not satisfied with the policy terms and conditions, you can cancel your
policy during the Free-look period i.e. within 15 days of receipt of the policy.
Right to Timely Claims Settlement:
The company is required to settle a claim within 30 days of submission of all the
necessary documents.
Right to receive Professional Service:
You have a right to deal with life insurance professionals who exhibit high ethical
standards like honesty, integrity, fairness and comprehensive knowledge of the

products.
Right to Complaint Resolution:
SBI Life along with its Insurance Advisors, CIFs and Brokers is dedicated to high
standards of customer service. If you have a complaint about the services you have
received, you have the right to approach us.

CONCLUSION
This study provides information about on the performance of the SBI Life Insurance agents,
problems confronted by them, impact of training and 287 motivation on marketing performance
and the attitude of policyholders towards the services offered by them in the study area. The
researcher pointed out various suggestions both SBI Life Insurance agents. Thus it is concluded
that the SBI life insurance is a multifaceted tool, which promotes stability,prosperity and
happiness of the individual and society. The challenge for the SBI Life insurance agent is three
fold, creating the need where it is not there,changing the need into their want and turning the

want into demand which they must be able to satisfy. Sales and service are the two sides of the
same coin this fact agents should not forget and take these two aspects as challenging factors
in day to day activities so that the SBI Life insurance can emerge as a market leader in the
industry.
SCOPE FOR FURTHER RESEARCH
The present study paves the way for further researchers in the following areas.
(i) A Comparative study on the business performance of different private insurance companies.
(ii) Evaluating the working performance of private sector Life insurance companies
(iii) A study of the attitude of private life insurance agents the service and products provided by
private insurance companies.
(iv) Problems of the private life insurance companies agents and strategies for success in selling
life insurance products an overview.
(v) Service quality of private sector life insurance companies an analytical study.

This study is an attempt to evaluate the Utilization of Life Insurance Product A Study
with reference to State Bank of India Life Insurance in Tirunelveli District. The study begins
with the historical perspective of life insurance and origin and growth of SBI Life Insurance.
This study also analyses the economic settings of Tirunelveli and the area profile of the district
for the promotion of life insurance. This study has helped in understanding the performance of
SBI Life Insurance Company Limited at national, state and district level. This study also gives a
descriptive picture of the extent of utilization of the products and services of SBI Life by the
policyholders in Tirunelveli. This study has an effective role in emphasising the attitude of the
policyholders towards the services offered by the SBI Life and its advisors. This study is both

descriptive and analytical in nature. It is a blend of primary and secondary data. The researcher
has used an interview schedule (vide Appendix A) for collecting primary data. This study has
to be described as an informative and useful experiment.
Business Performance of SBI Life
The business performance of SBI Life has been analysed at three levels namely, national, state
and district level. The result from the analyses are given below.
Business Performance of SBI Life Insurance at National Level
The business performance of the SBI Life Insurance, has revealed that the number of policies at
the national level over the period from 2001-02 to 2010-11 was found to be more stable than the
sum assured and gross written off premium as evidenced through the co-efficient of variation.
The trend and growth were statistically significant at the 5 per cent level for the number of
policies, the sum assured and the gross written off premium. They are positive.
The trend and the growth of the active advisor were found to be significant and positive but the
business per active advisor had a negative trend and growth. In the case of claims intimated and
claims outstanding, less fluctuation was found in claims outstanding as per the co-efficient of
variation. The trend and growth of claims intimated were higher than the claims outstanding. The
ratio of claims outstanding to claims intimated has declined from 0.5973 in 2001-02 to 0.4150 in
2011-12.
In the case of the channel mix gross written premium, among agency, bancassurance, corporate
solutions and instituted alliance, the agency has been 265 found high in average value compared
to the other channel mix. But less fluctuation was observed in the instituted alliance. The trend
growths of all the four components of the channel mix gross written premiums were statistically
significant and positive. A high growth was found in the institutions alliance. Regarding assets
held under management and debt it was found high in average value with less fluctuation over a
period under the study compared to equity. The trend and growth of equity and debt were
statistically significant and positive. The average value of the linked mix of gross written was
found to be higher than the non-linked mix of gross written. The positive and significant trend

and growth were observed for the linked and non-linked mix of gross written during the period
under study
The average value of the first year premium was found to be high with less fluctuation than the
renewal and single premium. The trend and growth of the first year premium, the renewal
premium and the single premium were found to be significant and positive.
The trend and growth of commission and premium were statistically significant and positive.
Commission was found to have a higher growth (135.52 per cent) than premium (99.90 per cent).
The total income was found more fluctuating than the total expenses. A high fluctuation was
observed in profit / loss after tax than total income and the 266 total expenses. A positive and
significant trend and growth were observed in the total income, the expenditure and the profit
/loss after tax.
Net worth was found more schedule than total assets as evidenced through the co-efficient of
variation. The trend and growth were also statistically significant and positive for net worth and
total assets.
Business Performance of SBI Life Insurance at the State Level (Tamil Nadu)
It is revealed from the analysis that the sum assured was found stable followed by the number of
polices and premium income as evidenced through the co-efficient of variation. The trend coefficient and the growth were statistically significant at the 5 per cent level. A high growth rate
(62.66 per cent) of premium income was found during the period under study.
The number of active advisors has increased from 7000 in 2001-02 to 60000 in 2010-11. The
growth of business per advisors was found to be statistically significant. The growth rates of the
number of active advisors and business per active advisor were 14.47 per cent and 6.72 per cent
respectively.
Business Performance of SBI Life Insurance at District Level (Tirunelveli)
The analysis revealed that the number of new policies issued has increased from 17,870 in 200506 to 4710.07 in 2010-11. Less fluctuation was found in the new policies issued compared to the
sum assured and the premium income as per co efficient variations.

Regarding the productivity of the active advisor, a high average value of business with less
fluctuation was found during the period under study. The trend and growth of number of active
advisors and business per active advisor were statistically significant and positive. The net
premium and gross premium were found to increase in trend and growth during the period. The
net retention ratio was also found near 100 percent. The trend and growth of net premium and
gross premium were statistically significant at the 5 per cent level. The stability of the operating
expenses were found to be high, compared to the commission and total expenses over the period
under study. Regarding the liabilities of policy holders, it was found high, during the period
under study. The trend and growth of policyholder's liabilities and shareholders were statistically
significant at the 5 per cent level.