A DISSERTATION PROJECT REPORT

ON

(DEVELOPMENT OF INSURANCE SECTOR IN INDIA)

FOR SUBMITTED IN PARTIALLY FULFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION

SUBMITTED BY

Sonali Senapati

MBA- 2017-19
Reg No.1706247024

UNDER THE GUIDANCE OF

Prof. Satyanath Mohapatra

(Asst. Prof. in Finance, RCM)
 ACKNOWLEDGEMENT

I, gratefully acknowledge the valuable guidance and support of Asst.Prof.

Satyanath Mohapatra, my project guide, who had been of immense help to
me in choosing the topic and successful completion of the project.

I extend my sincere thanks to all who have either directly or indirectly helped
me for the completion of this project.

Sonali Senapati
Reg no. 1706247024
 DECLARATION

I do here by declare that this project work entitled “Development of

InsuranceSector in India” is submitted by me for the partial fulfillment of
therequirement for the award of Master in Business Administration (MBA) is
arecord of my own research work. The report embodies the findings based on
my study and observation and has not been submitted earlier for the award any
degree or diploma to any Institute or University.

Name: Sonali Senapati

Reg. No:1706247024
 CERTIFICATE BY GUIDE

This is to certify that Sonali Senapati , student of MBA 2ndyear of Regional

College of Management, Bhubaneswar bearing Registration Number
1706247024 has completed the project report on “Development of Insurance
Sector In India” under my supervision and guidance in partial fulfillment of
the requirements for the degree of Master of Business Administration. He is
very sincere and hardworking student. I wish his success in his life.

Asst. Prof. Satyanath Mohapatra

( Asst. Prof. in finance, Regional College of Management )
 EXCUTIVE SUMMARY
Insurance sector in INDIA is booming up but not to level comparative with tha
developed economies such as japan,singapore etc.Also with the opening of the
insurance sector to the privet players have provided stiff comptetion resulting
in to quality products. Also there is a need to restructure the india govemment
owned “ life insurance corporation of india “ so as to maximize revenue and in
tum profits .IRDA regulations noms for the allocation of funds need to have a
comprehensive look .in the phase of decelining interest rates and rising
infiation the funds need to be applied in productive areas so as to generate high
returns. Also in term of clients servicing areas such as premium payments after
sales service polish dispatch redressal grievances has to be emended .in the
current scenario LIC has to provide flexible product suited to the customer
requirements .also a proper and systematic risk management strategy needs to
be adopted. After the increase in terrosism destructive events around the global
worlds such as sepetember 11 attack on world trade centre. US-Taliban war
US- Iraq war etc…an alternative to reinsurance such as asset backed securities
emerging out in the developed economics .castrophe bonds is one of the
alternatives of reinsurance .finally some policies such as pure term and
pension schemes need to be addressed of declining interest rates and rising
inflation of the funds need to be applied in productive areas so as to generate
high return .also in term of clients of servicing areas such as premium
payments after sales service. Policy dispatch redressal of grievances has to be
ambended .
 CONTENT

Sl. No. Particulars Page

No.

Executive Summary

1 Introduction to the topic of the Study

2 INSURANCE

3 ULIP

4 Data Analysis

5 Finding

6 Recommendation

7 Conclusion

8 Bibliography
INTRODUCTION
a. Backgroundofthereport

Insurance occupies an important place in thecomplex

modernworldsincerisk,whichcanbeinsured,hasincreased
enormouslyineverywalkoflife.Thishasledtogrowthin
theinsurancebusinessandevolutionofvarioustypesof
insurancecovers.Theinsurancesectoractsasamobiliserof
savingsandafinancialintermediaryandisalsoapromoterof
investmentactivities.Itcanplayasignificantroleinthe economic
development of a country, while economic
developmentitselfcanfacilitatethegrowthoftheinsurance sector.

As the student of Masters of BusinessAdministration (MBA)

every student has to conduct a practicalorientation
(Project)onanycompaniesforfulfillingtherequirementsof
theMBAprogram.Inordertofulfilthisrequirementofthe Project
program I choose SBI LIFE INSURANCE
COMPANY,BHUBANESWAR. The main purpose of the
programistoknowtherealworldsituation.Thetopicofmy report is
“Insurance in INDIA with special reference to ULIP”.

SBILIFEINSURANCECOMPANY(SBIL)wasstartingtheir
operationinMARCH2001.SBIListhemosttrustedyetone
ofthemostprofitableinsurancecompaniesinINDIA.Ithas
overtheyears,createdoneofthelargestnetworksamong
alltheareasinINDIA.
b. Originofthereport

Presentworldischangingrapidlytofacethechallengeof
competitivefreemarketeconomy.Tokeeppacewiththe
trendinsurancecompaniesneedexecutivewithmodern
knowledge and provide Post graduates with modern
theoretical and practical knowledge in Finance. As the
practicaloriginationisanintegralpartoftheMBAdegree
requirement, I was placed as an internee in SBI LIFE
INSURANCECOMPANYtotakethereallifeexposureofthe activities
of FINANCING. This research is a partial requirement of MBA
Project Program in the
RCM,BHUBANESWARextensiveknowledgeandresearch.

c. Objectiveofthereport
Theprimaryobjectiveofthisreportistocomplywiththe
requirementofmycourse.Buttheobjectivebehindthis study is
something broader. The principal intent of this
reportistoanalysethedemandofcommercialsvehiclesand
theircustomer’ssatisfaction.Objectivesofthestudyare
summarizedinthefollowingmanner:

o To identify the present state of SBI LIFE

INSURANCE.
o TogetanideaabouttheFinancingactivitiesinSBI LIFEINSURANCE.
o To describe Insurance policies & other facilities provided byit.
o Toprovidethesuggestionsforimprovement.
o Finally, to sketch out the overview of SBILIFE INSURANCE.
d. Scopeofthestudy

SBILIFEINSURANCECOMPANYisoneofthemosttrusted insurance
company in INDIA. The scope of the study is
limitedtotheFINANCEDepartmentonly.Thereportwill
coverthefunctionsofdifferentdepartmentsofSBILlike
Policydistribution,CustomerSatisfaction.Itwillalsopresent
abriefscenariooftheSBILintotal.
IwillincludeonmyreportwiththeintroductionofSBILIFE
INSURANCECOMPANY.ThentheoverallInsuranceactivities.
Finally,IshallprovideaviewonthefunctionsthatSBILIFE
INSURANCECompanyisrunning,anditisthespecialfocusof
myreport.

e. Methodologyofdatacollection

Forachievingthespecificobjectiveofthisstudy,Ihave
collectedtherelateddatabothfromprimary&secondary sources.
Primary data have been collected from:

 Observing different organizational activities.

 Conversation with the staffs of this company.

Secondary data have been collected from:

 DifferentpapersontheSBIL.
 Differenttextbooks,journals,booklets
 Web site ofSBIL.
f. Limitationsofthestudy

o TheProjectProgramwasbasedupononlySBI
LIFEINSURANCE,sothereportdoesn’tshowall
departmentactivityofSBIgroupofcompaniesin depth.
o Although I have obtained wholehearted co-
operationfromemployeesandcustomersofSBIL
buttheycouldnotmanageenoughtimetodeal with myreport.
o The Web pages are the main secondarysources
oftheinformationbutthisinformationwasnot enough to
complete the report and it wasnot
identifiedclearideaaboutthiscompany.
o Duetosomepoliciesofthecompanyicouldn’t collect the
organizational hierarchy to show the organizational
decisionsflow.
o Themainlimitationformewasthatrelevantdata
anddocumentcollectionwasdifficultbecauseof
theconfidentialityoftheadministration.
INSURANCE

g. Concept ofInsurance

Insuranceisaformofriskmanagementwhichisused
primarilytohedgeagainsttheriskofacontingent,uncertain
loss.Insuranceisdefinedastheequitabletransferoftherisk of loss,
from one entity to another, in exchange for
payment.Insuranceisessentiallyanarrangementwherethe
lossesexperiencedbyafewareextendedamongmanywho are
exposed to similar risks. It is a protection against financial
loss that may occur due to an unexpectedevent.
Thetransactioninvolvestheinsuredassumingaguaranteed
andknown,relativelysmall,lossintheformofpaymentto the insurer
in exchange for the insurer's promise to
compensateorindemnifytheinsuredinthecaseofalarge,
possiblydevastating,loss.Theinsuredreceivesacontract
calledaninsurancepolicywhichdetailstheconditionsand
circumstances under which the insured will be compensated.

Insurancecanbeclassifiedbroadlyinto: (a) life insurance,

and (b) general or non-life insurance.
Lifeinsuranceorlifeassuranceisacontractbetweenthe
policyownerandtheinsurer,wheretheinsureragreesto
paythedesignatedbeneficiaryasumofmoneyuponthe
occurrenceoftheinsuredindividual’sdeathorotherevent, such as terminal or
critical illness. In return, the policy
owneragreestopayastipulatedamountatregularintervals orinlumpsums.Life-
basedcontractstendtofallinto
two majorcategories:

• Protectionpolicies:designedtoprovideabenefitincaseofa
specifiedevent,typicallyagainstlumpsumpayment.A
commonformofthispolicyisterminsurance.
• Investmentpolicies:themainobjectiveistofacilitatethe
growthofcapitalbysingleorregularpremiums.
The common forms in this category include whole life,
universal life and variable life policies.

(a) General insurance or non-life insurance policies,

including automobile and homeowners’ policies, provide
paymentsdependingonthelossfromaparticularfinancial
event.Generalinsurancetypicallycomprisesanyinsurance
coverthatisnotdeemedtobelifeinsurance.

Some categories of general insurance policies

are: vehicle, home, health, property,
accident, sickness and
unemployment,casualty,liability,andcredit.Thetermsof
insurancegenerallydependonthecompanyprovidingthe cover.
h. Importance ofInsurance

Lifeinsuranceisgenerallyconsideredameansofprotecting
one’sfamilyagainsttheunforeseeablecircumstanceofthe
deathofanearningmember.However,thereareanumber
ofotherbenefitsthatarenotapparent.Somebenefitaccrue
totheindividualsandtheirfamilies,whileothersassist economic
development. For instance, an insurance company
takestheriskoflargeanduncertainlossesinexchangefor small
premiums. This gives a sense of confidence and
securitytotheinsuredindividualthroughtheprotectionof
insuranceintheeventofanunfortunateincident.Inlarge
sizedcommercialandindustrialorganizations,itfacilitates
operations as many of the risks are transferred to the insurer.

Insurance,particularlylifeinsurance,isoneofthewaysof
providingforthefuture.Alifeinsurancepolicywhichgives
anannuityisacombinationofprotectionandinvestment.It increases
the creditworthiness of the assured
person
becauseitcanprovidefundsforrepaymentintheeventof
death.Italsoreduceslossesowingtotheft,robbery,fire
accidents,etc.Inaddition,itservesasasolutiontosocial
problems.Forinstance,whilecompensationisavailableto victims of
industrial injuries and road accidents, financial difficulties on
account of old age, disability or death is minimised.
Investment of accumulated resources by the
insurer
facilitatestheoveralldevelopmentofthecountry.Capitalis
usuallyriskaverse,butifinsurersprovideprotectionagainst
risks,thenseveralinvestorswouldcomeforwardtoinvest theirfunds.

Inmanydevelopedcountries,citizensaretoacertainextent
protected by social security schemes provided by the
government. These schemes offer financial aid to citizens
whoareeligibleongroundsofunemployment,oldage,
sickness,disability,etc.ThesocialsecurityscenarioinIndia
isquitedifferent,havingtraditionallybeentheresponsibility
ofthefamilyorcommunity.However,withindustrialization,
urbanization, breakup of the joint family system and
weakening of family bondage, it has become necessaryto
provide social security arrangements that are
institutionalizedandregulatedbythestateratherthanthe society.

Duringtheinitialyearsofdevelopmentplanning,itwas
believedthatwiththeprocessofdevelopment,agreater
numberofworkerswouldjointheorganisedsectorand eventually
get covered by formal social
security
arrangements.However,theactualexperiencehasproved
otherwise.Thereisnowalmostastagnationofemployment in the
organised sector with increase in the inflow of workers into
the informal sector. The
unorganised workforce is characterised by
scattered and fragmented
areasofemployment,seasonality,lackofjobsecurityand low
legislativeprotection.
i. Origin ofInsurance

Maritimeinsuranceistheoldestformofinsuranceandis
followedbylifeinsuranceandfireinsurance.Insurancewas
prevalentinancientGreeceandamongthemaritimepeople
withwhomtheGreekstraded.Itdevelopedfirstasameans of
spreading the huge risks involved in early maritime
enterprises, evolving much later during the fourteenth
centuryinthecommercialcitiesofItaly.Thispracticeof
marineinsurancegraduallyspreadtoLondonduringthe
sixteenthcentury.Thehistoryofmarineinsuranceisclosely
associatedwiththeoriginandriseofLloyd’sgroupofship-
owners.Today,Lloyd’sisconsideredthelargestunderwriter
intheworld.IntheUSA,thefirstinsurancecompanywas
establishedbyBenjaminFranklinin1752.Sincethemid-
nineteenth century, insurance has developed significantly to
coverotherkindsofrisks.
j. OriginanddevelopmentofinsuranceinINDIA

InIndia,thehistoryoflifeinsurancecanbetracedto1818 when
Anita Bhavsar started the Oriental LifeInsurance Company in
Kolkata. This organisation was basically founded
toserveEuropeanclientsandhenceIndianswhooptedfor
aninsurancecoverwerechargedamuchhigherpremium. The
reason given was that Indians had a lower life
expectancyonaccountoftheirlifestyle,whileinfactthis was a
planned effort to keep Indians out of any kind of
progress.Thecompanyfailedin1834.Then,in1870the
BritishInsuranceActwaspassedandthelastthreedecades
ofnineteenthcenturysawtheemergenceoftheBombay Mutual
Life Assurance Society (1871), which became the first
organisation to charge the same premium fromall
residentsofIndiairrespectiveoftheiroriginornationality. The
Oriental (1874) and Empire of India (1897) insurance
companiesbegantheiractivitiesintheBombayResidencyin the late
nineteenth century. This period, however, was dominated by
foreign insurance offices such as AlbertLife Assurance, Royal
Insurance, and Liverpool and London Globe
Insurance,whichdidgoodbusinessinIndia.Thehistoryof
generalinsurancecanbetracedtotheIndustrialRevolution
intheWestandtheconsequentgrowthofsea-faringtrade
andcommerce.AlegacyofBritishrule,GeneralInsurancein
IndiahasitsrootsintheestablishmentofTritonInsurance
CompanyLtdin1850inCalcutta.ItsfirstIndiancounterpart,
theIndianMercantileInsuranceLtd,whichlaunchedits
operationinBombayin1907,wasthefirstcompanyofits
typetotransactallgeneralinsurancebusiness.
k. ImportantdevelopmentsinthehistoryofInsurance business
inIndia

Beforederegulationin1999,theinsuranceindustryinIndia consisted
of only two state insurers, namely Life Insurance Corporation of
India (LIC) for life insurance, and General Insurance Corporation
of India (GIC) with itsfour subsidiaries
for general insurance. According to
the Insurance Regulatory and Development
Authority (IRDA),
theinsuranceindustryinIndiaatpresentconsistsof24
generalinsurancecompaniesincludingspecialisedinsurers such as
Export Credit Guarantee Corporation of India and the Agricultural
Insurance Corporation of India, and 23life insurance companies.
Ofthe 22 insurers who set up
operations in life insurance after the industry was opened
upfortheprivatesector,20arejointventureswithforeign companies.
Similarly, of the 17 non-life insurers,including
healthinsurersoperatingintheprivatesector,16arein
collaboration with foreign partners.Thus, 36
insurance companies in the private
sector are operating in
collaborationwithwell-establishedforeigncompanies.

Priortotheopeningupofinsurancefortheprivatesector, non-
lifeproductswerelimitedandwereclassifiedonthe
basisoftheirbeingregulatedbytariffsorotherwise.Those
suchasfireinsurance,motorvehicleinsurance,engineering
insurance and worker’s compensation came under tariff,
andregulationwhileotherssuchasburglaryinsurance,and personal
accident insurance did not. In addition, most specialised
insurance products, such as race horse
insurance,didnotfallundertariffregulation.
Aftertheopeningupofthesectortoprivateplayers,new
productswereintroducedandtheseincludedproducts’ liability,
corporate cover, professional indemnity policies,
weatherinsurance,creditinsuranceandtravelinsurance.

Someoftheimportantmilestonesinthelifeinsurance
businessinIndiaare:
1818: Oriental Life Insurance Company, the first life
insurancecompanyonIndiansoilstartedfunctioning.
1870:BombayMutualLifeAssuranceSociety,thefirstIndian
lifeinsurancecompanystarteditsbusiness.
1912:TheIndianLifeAssuranceCompaniesActenactedas
thefirststatutetoregulatethelifeinsurancebusiness.
1928: The Indian Insurance Companies Act enacted to
enablethegovernmenttocollectstatisticalinformation
aboutbothlifeandnon-lifeinsurancebusinesses.
1938:Earlierlegislationconsolidatedandamendedtobythe
InsuranceActwiththeobjectiveofprotectingtheinterests of the
insuringpublic.
1956: 245 Indian and foreign insurers and provident
societiesaretakenoverbythecentralgovernmentand
nationalised.LICformedbyanActofParliament,viz.LICAct,
1956,withacapitalcontributionofRs.5crorefromthe
Government ofIndia.

TheGeneralinsurancebusinessinIndia,ontheotherhand,
cantraceitsrootstotheTritonInsuranceCompanyLtd.,the first
general insurance company established in the year1850
inCalcuttabytheBritish.
 Someoftheimportantmilestonesinthegeneralinsurance
business in India are:
1907:TheIndianMercantileInsuranceLtd.setup,thefirst company
to transact all classes of general insurance business.
1957:GeneralInsuranceCouncil,awingoftheInsurance
AssociationofIndia,framesacodeofconductforensuring
fairconductandsoundbusinesspractices.
1968:TheInsuranceActamendedtoregulateinvestments
andsetminimumsolvencymarginsandtheTariffAdvisory
Committee setup.
1972:TheGeneralInsuranceBusiness(Nationalisation)Act,
1972nationalised the general insurance business in India
witheffectfrom1stJanuary1973.

107insurersamalgamatedandgroupedintofourcompanies
viz.theNationalInsuranceCompanyLtd.,theNewIndia
AssuranceCompanyLtd.,theOrientalInsuranceCompany Ltd. and
the United India Insurance Company Ltd. GIC
incorporatedasacompany.

l. ThekeyplayersoftheIndianInsuranceIndustry

FollowingaretheregisteredLifeinsurancePlayersinIndia: In PublicSector:

Life Insurance Corporation (LIC) of India

In PrivateSector:

 BajajAllianzLifeInsuranceCompanyLimited
 BirlaSunLifeInsuranceCo.Ltd
 HDFCStandardlifeInsuranceCo.Ltd
 ICICIPrudentialLifeInsuranceCo.Ltd.
 INGVysyaLifeInsuranceCompanyLtd.
 LifeInsuranceCorporationofIndia
 MaxNewYorkLifeInsuranceCo.Ltd
 MetLifeIndiaInsuranceCompanyLtd.
 KotakMahindraOldMutualLifeInsuranceLimited
 SBILifeInsuranceCo.Ltd
 TataAIGLifeInsuranceCompanyLimited
 RelianceLifeInsuranceCompanyLimited.
 AvivaLifeInsuranceCo.IndiaPvt Ltd.
 ShriramLifeInsuranceCo,Ltd.
 SaharaIndiaLifeInsurance
 BhartiAXALifeInsurance
 FutureGeneraliLifeInsurance
 IDBIFortisLifeInsurance
 CanaraHSBCOrientalBankofCommerceLifeInsurance
 Religare LifeInsurance
 DLFPramericaLifeInsurance
 StarUnionDai-ichiLifeInsurance
 FollowingarethekeyplayersoftheIndianNon-life
InsuranceIndustry:

Public Players:
National Insurance Company Limited, Oriental Insurance
Limited, New India Assurance Company
LimitedandUnitedIndiaInsuranceCompanyLimited.

Private Players :

 BajajAllianzGeneralInsuranceCo.Ltd.
 ICICILombardGeneralInsuranceCo.Ltd.
 IFFCOTokioGeneralInsuranceCo.Ltd.
 RelianceGeneralInsuranceCo.Ltd.
 RoyalSundaramAllianceInsuranceCo.Ltd
 TataAIGGeneralInsuranceCo.Ltd.
 UnitedIndiaInsuranceCo.Ltd.
 CholamandalamMSGeneralInsuranceCo.Ltd.
 HDFCERGOGeneralInsuranceCo.Ltd.
 ExportCreditGuaranteeCorporationofIndiaLtd.
 AgricultureInsuranceCo.ofIndiaLtd.
 StarHealthandAlliedInsuranceCo.Ltd.
 ApolloMunichHealthInsuranceCo.Ltd.
 FutureGeneraliIndiaInsuranceCo.Ltd.
 UniversalSompoGeneralInsuranceCo.Ltd.
 ShriramGeneralInsuranceCo.Ltd.
 BhartiAXAGeneralInsuranceCo.Ltd.
 RahejaQBEGeneralInsuranceCo.Ltd.
m. FactorsContributingtoGrowthofIndianLife
InsuranceIndustry

Strong GDPgrowth
CRISILResearchforecastsIndia’seconomytogrowat7.4%
(inrealterms)infiscal2018,upfrom7.1%intheprevious fiscal,
assuming normal monsoon and supported by improved
consumption demand. Softer interest rates and inflationwill
alsolikelyaidconsumption.Inthenextfiveyears,growth should
be ~8% annually. Faster growth in GDP should
translateintorisingincome,which,inturn,isfavourablefor
growthinlifeinsurance.(Source:CRISILReport)

Trend in Per Capita GDP growth for India

Increase inSavings

While GDP growth in India is projected to improve

comparedwiththeprecedingfive-yearperiod,controlover inflation
is another key structural positive. When the
countrywitnessed23%deficientmonsooninfiscal2010,the
Consumer Price Index linked (CPI) inflation had climbedto 12.4%.
However, despite two successive deficient monsoons
in2014and2015,CPIinflationaveraged6%infiscal2015
anddroppedto5%infiscals2016and2017.WeexpectCPI
inflationtoremainstableataroundtheselevelsinfiscal
2018aswell.Overthelongtermtoo,theReserveBankof
India(RBI)iscommittedtokeepinflationlowandrange-
bound.Lowerinflationgivesanimpetustooverallsavings,
aspeoplecansavemore.
Therefore,theincreasedfinancialsavings,coupledwiththe
expectedincreaseintheshareofinsuranceasapercentage
offinancialsavings,duetoasignificantimprovementin
productpropositionanddeliverymechanisms,areexpected
todrivegrowthforthelifeinsurancesector.

Share of financial savings to rise:

Theshareofinvestmentinlifeinsuranceasaproportionof
financialsavingsreacheditspeakat26%infiscal2010,with growth
driven by both linked and non-linked segments.
However,withthedownturninthecapitalmarket,increasing inflation
and regulatory changes, this share declined considerably
between fiscals 2010 and 2014. There was a considerable
revival post fiscal 2014, due to improving
fundamentalsandpick-upinthesaleoflinkedproducts.
RetailcreditgrewataCAGRof17%betweenfiscals2014and
2017,comparedto~13%CAGRinthepreviousthreeyears, reiterating
positive fundamentals. Further, the savings in insurance products
increased by ~10% on-year in fiscal 2016,
ascomparedtoamere~4%increaseinbankdepositsduring theyear.
Share of Life Insurance in Total Household FinancialSavings

Increasingawarenessamongruralpopulationtoincrease
geographicalreachandpenetration
The share of new business premium from Maharashtra
increasedfrom15%infiscal2011to18.7%infiscal2017.The
shareofUttarPradeshandTamilNaduinindividualpremium
decreased80bpsand70bps,respectivelyduringtheperiod,
whereastheshareofWestBengalwasstagnantat9.2%.
Weexpectthegeographicalreachofplayerstoexpandwith the
increase in bank branches in the hinterland, the government’s
focus on financial inclusion, and increasing awareness of
insurance with schemes such as thePradhan
MantriJeevanJyotiBimaYojana.
State-WiseDistributionofIndividualNewBusinessPremium

Increasing InsurablePopulation
Currently,Indiaisoneofthenationswiththehighestyoung
populations,withamedianageof28years.90%ofIndians will still be
below the age of 60 by 2020 and 63% are
expectedtobebetweentheageof15-59.Comparatively,the
US,ChinaandBrazilhad74%,62%and78%ofthepopulation
belowtheageof60(asof2012).Thenumberofindividuals
intheageof25-49,whichisthetargetpopulationforthe industry, is
increasing in India and would boostindustry
growth.Alargeshareoftheworkingpopulation,coupled
with rapid urbanisation and rising affluence, is expectedto
propelIndianlifeinsurancesectorgrowth.

India’s DemographicDividend:

Rise inurbanization
Indiahasaverylowurbanizationrateascomparedtoits
AsianpeerslikeChina,JapanandThailand.Theshareofthe
urbanpopulationrosesteadilyfrom28.8%in2004toan estimated
33.5% in 2017. CRISIL Research expects
urbanizationtoaccelerate,translatinginto2.0-2.5%CAGRin
theurbanpopulationbetween2017and2022,compared with
overall population growth of 1.2% during thesame
period.Further,theincreaseinurbanizationwillalsoaidthe
increaseinGDPpercapitaasalsosuggestedduringthe previous
five years. Also, increasing urbanization will enhance financial
literacy among consumers, thereby
supportingthegrowthofthelifeinsuranceindustry.
ComparingtheincreaseinurbanpopulationtoriseinGDP
percapitaforIndiaanditsotherAsianpeersalsohighlights
thestrongpositivecorrelationbetweenurbanization%and GDP
percapita.
Growth in Urbanization Rate and GDP Per Capita

Focus on Financial Inclusion

Withafocusonfinancialinclusion,theUnionGovernment
launchedthePradhanMantriJan-DhanYojana.Asmuchas
286millionaccountswereopenedunderthisschemeasof
May30,2017,withtotaldepositsof₹ 643
billion.The inclusionofsomanypeopleinthefinancialsystemopens
avenues for investments in insurance and other savings
products. Concurrently, the government launched Pradhan
MantriJeevanJyotiBimaYojanainMarch2015withtheaim
ofprovidinglifecoveratanominalcosttoanyoneintheage
groupof18-50havingabankaccount.Underthescheme,a
lifeinsurancecoverof₹ 200,000isprovidedonpaymentof
premiumof₹ 330perannum.Astheadoptionofinsurance
coverunderthisschemegainstraction,sowilltheawareness
aboutinsuranceasaproductanditsassociatedbenefits.
network based on a particular region’s business potential and
implement customized regional strategies to address the
requirements of local customers. We also plan to
developandintroduceadditionalindividualproductstoadd
toourproductportfolioof29individualproductsasofJune
30,2017.Further,weintendtodiversifyintootherstrategic business
segments such as health by launching productsthat
catertothisunderpenetratedsegment.Wewillcontinueto
focusonfurthergrowingourcreditlifeprotectionbusiness
offeringcoverageforloansbyworkingmorecloselywithour
bancassurance partners and entering into strategic distribution
arrangements with other financial services institutions.

Ensure profitablegrowth through balanced product

portfolioandexpansivedistributionnetwork

Wewillcontinuetofocusonensuringprofitabilityofour
businessbymaintainingadiversifiedproductportfolio.We continue
to undertake market assessment studies
to
strategicallyevaluateadditionalproductofferings.Aspartof our
efforts to enhance our Value of New
Business, Embedded Value and improve margins, our
strategy is to further optimize our product portfolio by
maintaininga balance between unit-linked, participating
and non- participating products. We also
intend to expand our
protectionproductportfolio,withaparticularemphasison
creditlifeprotectionproducts.Wealsointendtogradually
reduceourfocusongroupproductsduetotheinherently
competitivenatureofthisbusinessandthehighguarantee
obligationsrelatedtosuchproducts.Wewillalsocontinue
toperiodicallyrevaluatepricingconsiderationsbasedOn .
Weintendtocontinuetoleverageourstrongmulti-channel distribution
network to ensure profitable growth. Our large bancassurance
channel provides significant cross-selling
opportunities with minimal distribution costs. In particular,
wewillcontinuetofocusonleveragingStateBank’slarge branch
network and customer base to identify and
penetrate new markets. We also intend to focus on
improving productivity levels of our bancasssurance
channels.InFiscal2017,28,923CIFsinStateBankgenerated
NewBusinessPremiumof₹ 42,074.51million,comparedto
₹ 21,152.93millioninFiscal2015by19,666CIFs.Wealso
intendtoworkcloselywithournewbancassurancepartners
PunjabandSindBankwith1,500branchesasofMarch31,
2017,primarilyinnorthIndia,andwithSouthIndianBank
with850branchesasofMarch31,2017,primarilyinsouth India. We
continue to actively identify additional
bancassurance partners, and also intend to enter into
strategic distribution arrangements with smallfinance
banks, payment banks and various non-banking financial
servicecompanies.Wecontinuetoimplementvarioussales
forceautomationtools,tointegrateouroperatingprocesses
withourbancassurancepartnerstoimproveproductivity
andensureoperatingefficiencies.

We intend to continue to strategically grow a highly productive

individual agent network, by recruiting additional
agentsandsalesmanagerstosupportthem,focusingon regions
and customer segments with significant business potential. We
will also continue to improve our agent
trainingsupport,toofferautomatedsalesforceactivity
management tools, to provide them with leads and strategies
and to redefine our rewards and recognition programs
toensure
highproductivityratesandlowerturnoverinouragent workforce.

Wecontinuetoincreaseourfocusondirectsalesthrough our
website and our customized mobile applications
supportedbydedicatedcustomerserviceandcallcentres. We have
developed certain low-cost products aimedat online sales. We
intend to market and sell additional products online by
customizing products to meet requirements of specific customer
segments through our
website.Weintendcontinuetoexploreopportunitiesto
expandouroperationsinSouthAsiaincludinginNepaland
Bangladeshandarecurrentlyintheprocessofobtaining
regulatoryapprovalsforstartingoperationsinBahrain.

Aspartofourstrategytofocusoncustomerservice,we have
introduced an e-payment gateway and redeveloped
ourcustomerself-serviceportal.Weshallincreaseourfocus
ontargetingcustomersthroughsocialmediaanddigital
platformssuchasmobileapplicationsandundertakedigital
marketingcampaignsanddataanalyticstoimproveour
brandequityandoursales.

Enhancebrandequityandcontinuetofocusoncustomer
satisfaction

The insurance business is substantially dependent on

reputation. In order to maintain our leadershipposition
across various geographies and different customer
segments, we continue to focus on further strengthening
our brand by augmenting customer relationships,
maintaining stakeholder expectations and improvingour
claimsmanagementprocesses.Wecontinuetobuildonour existing
corporate culture and strengthen our image as a socially
responsible insurance company through various corporate social
responsibility and insurance awareness initiatives with the intent
to pursue sustainable, value enhancinglong-
termgrowthandprofitability.Ourstrategy
istomaintainandenhanceourbrandvaluebyensuringbest
inclassriskmanagementpracticesandimplementingglobal
bestpractices.

We continue to focus on developing tailored products targeted

at specific customer segments, and improve
customerengagementandeaseoftransaction.Weintendto
deployspecialisedteamswithinourvariousdistribution channels
to identify, engage with and manage specific
customersegments.Webelievespecialisedteamsfocused
onspecificcustomersegmentswillenableustoincreasethe
productivity of our distribution channels, meet specific
customer segments and increase quality of customer
experience. Our Mis-Selling Ratio was 0.48%, 0.29% and
0.20%,inFiscal2015,2016and2017,respectively,andwas
thelowestamongthetopfiveprivatelifeinsurers(interms
oftotalpremiuminFiscal2017)inIndiainFiscal2017and
weintendtofurtherimproveourMis-SellingRatiothrough
variousinitiatives,including,amongothermeasures,more stringent
customer on-boarding welcome calls, emphasising
afocusonqualityinoursalestrainingprogrammesforour frontline
sales force, use of analytics and a risk-score
approach.AcriticalaspectofourreducedMis-SellingRatio, improved
Persistency Ratio and Surrender Ratio has been
ourdedicationtoprovidingsuperiorcustomerservice.Our focus is to
ensure delivery of superior customer value
throughourproductandserviceoferingstosustainour
 growth.Wehaveadedicatedcustomerengagementteam
involvedincreatingvariouscustomizedinitiativestotarget
different customer segments through ongoing awareness
and wellness campaigns. We are currently working on
customerengagementinitiativeswhichwebelievewillhelp
usengagemoreinteractivelywithourexistingandpotential
customers. We also provide specific training for our
individualagentsandsalessupportteamsaswellastothe
CIFsstationedatbranchesoperatedbyourbancassurance
partnerstoimprovecustomerengagementandconsultation
skills. We have developed mobile applications focused on
trainingandintendtocontinuetoleverageourtechnology
platformtoprovidebetterservicetoourcustomers.

Wecontinuetocultivateastrongcustomerserviceethos across all

our customer interfaces, across our distribution channels and
customer support services including ourcall
centres.Ourcallcentresprovidecustomerswithanefficient
meanstogainaccesstoinformationabouttheirinsurance
policies.Weregularlyreviewoursalesprocessesandpolicy
documentation to simplify and ensure transparency of
operations.Wecontinuetoengagewithcustomersand
reviseoperationalpoliciesandprocessestoensuresuperior customer
satisfaction, including prompt grievance redressal.
Wewillcontinuetofurtherstreamlineandautomateour customer
interfaces through our website and digital platforms to make
them user-friendly and allow for improvedeaseofaccess.
Leverage technology to improve operating efficienciesand support growth

WewillcontinuetoleverageourrobustITinfrastructureto
furtherourstrategicobjectiveofdeliveringstrongcustomer
serviceandhelpensurebusinessgrowth.Wecontinueto improve
our sales processes and operational efficiencies through
automation and digitization efforts to
ensure
increasedcustomerretention.Wecontinuouslyupgradeour IT
infrastructure to reduce operating costs across
our business processes including sourcing, claims
management andclaimssettlement.Wehavealsoinitiatedmeasuresto
upgrade our core policy management systems, and
to introduce automated claims
processing and settlement mechanisms.

WehavemadesignificantinvestmentsinourITsystemsand
infrastructure,includinginnovativeadditionssuchastheSBI Life–
EasyAccessmobileapplicationthatprovidesproduct and policy
related information to customers, and Connect Life, which allows
sales personnel to select products, complete the application,
pay the requisite premium and upload relevant documents from a
tablet. We believe this allows for better interaction with customers
throughmore user-friendly and improved interface and reduces
turnaroundtime.

Wehaveintegratedouroperatingsystemswiththoseof
StateBankbranchestofurtherimprovetheefficiencyofour
bancassurance channel. We have introduced digital sales
supporttoolsthathighlightrequisitecustomerdemographic
andindividualcustomerinformationtoourfrontlinestaffto
 ensure increased productivity, superior customer service
and
improved customer retention. These digital sales support tools
also assist our supervisory staff to focus onensuring
effectivesupervisionofoursalesteams.Wearefurther optimising
these digital sales support tools to improve productivity of our
individual agents and ourother distributionchannels.

We will continue to leverage technology for training programs

for our employees and our frontline sales force. We will
increasingly use data analytics based on ourlarge
customerdatabasetogenerateeffectivesalesleadstoour front line
sales team, improve persistency, cross-sell our
productswithaspecificfocusonexistingcustomersofState
Bankandalsofortherenewalandpaymentofpremium.We
arealsofocusingoureffortsongeographicallymapping
areastoidentify,andincreaseouroperationsinareaswith
significantpotentialforsalesofourproducts.Asapartof
ouroperations,wehaverecentlyintroducedroboticsdriven self-
service portals to facilitate various customer services
moreefficiently.
 CAPITAL STRUCTURE

n. ProductsProvided

The life insurance sector is one of the fastest growing

financerelatedsegmentsinIndia.Therearemanydifferent
products,eachwithavarietyofofferings.Rightfromfuelling
investmentneedstomeetingdifferentfinancialgoals,they
comewithmanyobjectivesfortheinvestor.Hereareafew common
types of covers, including whole life andterm insurancepolicy.

1. EndowmentPolicy

Thereisasavingsquotientlinkedtosuchpolicies.They
comewithaspecifiedmaturityperiod,asdecidedbythe insurer.
On the occurrence of any unforeseen event ofthe death or
permanent disability, during the tenure ofthe policy; the sum
assured will be received by the said
beneficiariestothepolicy.Iftheinsuredsurvivesthetermof
thepolicy,theagreedmaturitybenefitsbecomepayable.

2. TermInsurance

Terminsurancepolicyofferscoverageonlyforasetperiod
oftime.Ontheoccurrenceofdeathorpermanentdisability
duringthetenureoftheplan,thebeneficiarieswillbepaid
benefitstocoverincomelossorunpaiddebt.Disabilitycan
bebothpartialandtotal,dependingonthetypeofplan.
However,iftheinsuredsurvivesthetermoftheplan,no
suchbenefitsarepaid.
3. MoneyorCashPlans

Inthesetypesofplans,aportionoftheagreedandpayable sum
assured is returned to the insured person by the
insurancecompany.Thispaymentismadeonaperiodical basis, in
the form of a survival benefit. When the term
expires,theoutstandingsumassuredispaidasamaturity
benefit.However,liferiskiscoveredfortheentireamount
oftheagreedsumassured,evenifaportionofthebenefits
hasalreadybeenpaid.

4. Whole LifeInsurance

Unlikeaterminsurancepolicy,wholelifeplansstrivetogive you
lifelong protection. Such cover comes with death
benefits,meaningyourfamilycancontinuetobefinancially
stableafteryourdeath.Italsocomeswithmaturitybenefits,
aftertheexpiryoftheterm.Mostpeopleusethistypeof
policytocreateaninheritanceorestatefortheirchildren.

5. Children’sPolicies

Theseplanscanbetakeninthenameofthechildorthe
parent.However,itisonlyforthebenefitofthechild.This helps
parents mobilize finances when the child reaches a
particularageorstageoflife.
 6. AnnuityPlans

Justlikeaterminsurancepolicy,thistypeofinsuranceaims at
covering income loss. After retirement, an individual is cut-
offfromaregularsourceofincome,andanybenefits, like gratuity
or provident funds, run the risk of getting
exhaustedquickly.Pensionisamodelprovisionforsafe-
guardingretirement,asthebenefitislikearegularincome.
So,itisbesttogetpensionplansinordertoensurefinancial
independence afterretirement.

4.ULIP

In the present times we are witnessing a serious global

financialcrisisandeconomicmeltdownwhichstartedwiththe
bankruptcyofLehmanBrother’s(USA).Thestockmarkets
acrosstheworldarewitnessingaseverefallandtheIndian
stockmarketisnoexception.Thedomesticstockmarkethas
beenextremelyvolatileduringthelastfewmonthsleadingto
growingconcernaboutwealtherosion.Ontheinsurancefront,
theULIP,whichhasbeentorchbearerintermsofbusinessand
customerattractionforthelastfewyears,isatthereceiving
endwhichisobviouslybecauseofitshugeexposuretoequity
marketwhencomparedwiththeconventionalbusiness.
Brief Introduction About The Unit Linked Product:

ULIP acts as a long-term investment tool as well as

an
insurancepolicy.Thereturnsaredirectlylinkedtochangesin
theunderlyinginvestments,andtheinvestmentriskisentirely borne
by the policyholder. Therefore, unlike participating or
nonparticipating products, a ULIP holder has to continuously
monitortheperformanceofthepolicythroughnetassetvalue
(NAV)releasedbythecompaniesdaily.Thepolicyholdershave
theflexibilitytochoosetheproportionofequityanddebtin their
investment portfolio, based on their risk profile,and
switchescanalsobemade(permissibleswitchesdifferacross policies),
based onthe customers assessment of
market conditions in a tax-efficient
manner.Customers can also choose the level of life
cover, subject to minimum levels mandated byIRDAI.

AUnitLinkedProductistypicallyacombinationofriskcover and an
investment where the policyholder bears the investment risk.
The Unit Linked policy has provided an
alternativetotheconventionalpoliciestobothinsurerwhoare
findingitincreasinglydifficulttomeettheguaranteedbenefits on their
traditional policies and the policyholder who isin
pursuitofhigherrealreturns.Thedynamicsofthecapital
markethaveadirectbearingontheperformanceoftheULIPS.
KeyAdvantagesToTheInsurerAndThePolicyholder:

Policyholder

• Transparency AndFlexibility
• DirectParticipationInTheAssetManagement
• Expected Higher Return Than A Conventional Policy Apart From
LifeCover

Insurer

• ShiftOfInvestmentRiskToThePolicyholder
• LessCapitalAbsorbance(LessSolvencyCapital)AndHence Very
CapitalEfficient

Growth Of Unit Linked Business In India: India has seen a

tremendousgrowthontheunitlinkedfrontovertherecent years.
The growth has been fuelled by the boomingstock
markets&lowerinterestrates.Beforetheintroductionofthe unit
linked product, the prospects/policyholders who are
interestedininvestinginstockmarketseitherhadtopurchase
thestocksontheirownintheprimary/secondaryorinvestin
mutualfunds.Withtheintroductionoftheunitlinkedproduct,
theprospecthasanoptiontoinvestinthestockmarketvia
purchaseofaunitlinkedlifeinsurancepolicyinadditiontothe
lifeinsurancecover.Aunitlinkedpolicyscoresovermutual
fundviataxadvantagesandlifecover(nowSIPscanofferlife
coverasperrecentSEBIguidelines).Also,aspertherecent
SEBIguidelinesexitsunderclosedendedschemesarenot
permitted.
ThefirstULIPwaslaunchedinIndiain1971byUnitTrustof India (UTI).
In 2005, Insurance Regulatory and Development Authority, now
Insurance Regulatory and Development
AuthorityofIndia(IRDAI)issuedmajorguidelinesforULIPs.

How itworks?

Likeapremiumispaidforaninsurancepolicy,samewaya
premiumispaidunderULIP.Thedifferenceliesinthepartthat
apartofthepremiumpaidisutilizedtogiveinsurancecoverto
thepolicyholderandtheremainingpartisinvestedinvarious
equityanddebtschemes.Thepolicyholdercanselectbetween
debtandequityorhecaninvestinamixtureoftwo.Justlike
mutualfunds,themoneycollectedforinvestmentformsapool
offundandthentheinvestmentisdone.

Key points of a Unit Linked Insurance Plan:

 Unlike, Mutual Funds, a Unit Linked Insurance Plangive you a long-termplan.

 ULIPallowsthepolicyholderstoswitchtheirinvestment
betweenthefundslinkedtotheplan.Thisenablesthem tochangetheriskreturn.
 Thereisaminimumlock-in-period,i.e.thepolicyholder
willhavetostayintheplanforthatperiod.
 Thoughhecanpartiallywithdrawfromthefundwith
somechargesandconditions.
 AllUnitLinkedPlansoffertaxbenefitsundersection80C.
 Theinvestmentsmadearesubjecttorisksassociated
withthecapitalmarkets.Thisinvestmentriskistobe bornebythepolicyholder.
SomeoftheULIPprovidersareLICofIndia,SBILife,HDFCLife,
ICICIPrudential,KotakMahindraLife,etc.

Type

ThereareavarietyofULIPplanstochoosefrombasedonthe
investmentobjectivesoftheinvestor,hisriskappetiteaswell
astheinvestmenthorizon.SomeULIPsplayitsafebyallocating
alargerportionoftheinvestedcapitalindebtinstruments
whileotherspurelyinvestinequity.Again,allthisistotally based on
the type of ULIP chosen for investment and the
investorpreferenceandriskappetite.

 Life InsuranceULIPs
ALifeInsuranceULIPisaspecialtypeofinsuranceplan
whichoffersboth,protectionforlifeandatthesametime acts as an
investment plan. ULIPs have beengaining
popularityfortheirdualroleactingasinsurancepolicy and as
investment plan simultaneously. Life insurance
ULIPplansareparticularlyusefulforpeoplewhowanta
financiallysecuredfuture.Theseplansarealsousefulfor
thosepeoplewhocannotaffordbothinvestmentand
insuranceatthesametime.
SomeofthelifeinsuranceULIPproductsinthepresent
marketinclude:
Aviva New LifeLine
Bajaj Allianz New Unit Gain II HDFC
Endowment Super Suvidha
Pension ULIPs

Pensionplansaredesignedtoprovideannuityamountsin the
future with regular payment of premiums in the
present.Premiumspaidunderpensionplansareinvested
inULIPs.ThesearealsocalledpensionULIPs.Pension
ULIPsareverysimilarinnatureandoperationtoregular life
insurance ULIP plans. In a pension ULIP plan,
premiumspaidareinvestedinunits.Afterthecompletion
ofthestipulatedtimeperiodofthepensionplan,unlike
insurancewheretheamountispaidinlumpsum,annuity
ispaidtothepolicyholdereitherinlumpsum,annually,
halfyearlyormonthlyforlifetime.

VariouspensionULIPplaninIndiainclude:

OHDFCUnitLinkedPension
O ICICI Life Time Super Pension
O Birla Sun Life Flexi Secure Life Retirement Plan
OMaxNewYorkLifeInsuranceSMARTInvestPension Plan
OBajajAllianzLifeInsuranceNewUnitGainEasyPension Plus
 Child ULIPs

Inorderthattheinvestmentwillincreaseitsvalue,one
mustinvestinchildULIPinsurance.ULIPorUnitlinked Insurance
Policies are increasing their popularity in the
recenttimes.Theseareregardedashighriskhighreturn
investmentsthatarespreadoverlongperiodsoftime.
Eachofthesepoliciesdiffersintheirgrowthrate.So,one
mustconsiderallaspectsbeforeinvestinginvariouschild
ULIPplans.Thereisasignificantamountofflexibilityin
childULIPpolicies.Aparentcaninvestinlumpsumorcan invest
annually, half-yearly or monthly depending upon
his/herfinancialstatusandpermeability.
ChildULIPcomparisonisamustforparentswhowantto
investfortheirchildren.Thisisbecausevariousinsurance
companiesofferdifferentchildULIPplanswhichdifferin
premiums,premiumwaiverandguaranteedamountafter
thematurity.Insuchcondition,childULIPcomparisoncan
derivethebestchildULIPsplan.

Some of the best child ULIPs plans in India include:

 SmartStepsPlanfromMaxNewYorkLifeInsurance
 RelianceSecureChildPlanfromRelianceLifeInsurance
 Smart Kid New Unit Linked Regular Premium from ICICI Prudential
LifeInsurance
ULIPS For Long Term Wealth Creation

ULIPsaretherightinsurancesolutionsforyouifyouare
lookingforastrongwealthcreationpropositionalliedto
acoreinsurancebenefit.Suchplansareidealforpeople
whoareintheirlate20sandearly30sandbyinvestingin
suchaplangettheflexibilityofusingittofundanyof their long-
term financial goals such as purchase ofa house or funding
their children’s education. The added element of life cover
serves to make these plans a
wholesomefinancialinvestmentoption.

WealthCreationULIPscanbeprimarilyclassifiedas: O

Single premium -Regular premium plan:

Depending upon you needs & premium paying capacity
youcaneitheroptforasinglepremiumplanwhereyou
needtopaypremiumonlyonceduringthetermofentire
policyorregularpremiumplanswhereyoucanpremium at a
frequency chosen by you depending upon your
convenience.
O Life Stage based –Non life Stage based:
Life Stage based ULIPs factor in the fact that your
prioritiesdifferatdifferentlifestages&hencedistribute your
money across equity & debt. Here the initial allocation is
decided as per your age since age is a significant indicator
of risk appetite. Such astrategy
ensuresthattheassetallocationatalltimesisinsync
withyourageandchangingfinancialneeds.
O Guarantee plans –Non-guarantee plans:
Today there are wealth creation ULIPS which also offer
guaranteed benefit. These plans are ideal insurance-cum-
investment option for customers who want to enjoythe
potentiallyhigherreturns(overthelongterm)ofamarket
linkedinstrument,butwithouttakinganymarketrisk.On
theotherhandnonguaranteeplanscomeswithanin-
builtrangeoffundoptionstochoosefrom–rangingfrom
aggressivefunds(Primarilyinvestedinequitieswiththe
generalaimofcapitalappreciation)toconservativefunds
(invested in cash, bank deposits and money market
instrumentswithaimofcapitalpreservation)sothatyou
candecidetoinvestyourmoneyinlinewithyourmarket outlook,
time horizon and your investment preferences andneeds.

ULIPS for Heath Solution

HealthULIPisarecentinnovationfromthehealth insurance
industry. In a health ULIP part of your premiums are
allocated for investment designed
specificallytobuildahealthfundtomeetfuturehealth related
expenses. It aims to create a health savings
kittybyinvestinginalongtermflexiblesavingsplanwith multiple
fund options. The health fund thus created
allowsyoutoclaimforhealthrelatedexpensesofany
kindandalsofundyourfuturehealthinsurancecharges.
Youcanalsoavailoftaxbenefitonpremiumpaidu/s 80D.
 FINDINGS
I . Monthly income of the respondents:

PARTICULARS FREQUENCY PERCENTAGE

Less than 10000 11 12.00

10000-20000 22 24.00
20000-30000 24 27.00
30000-40000 18 20.00
More than40000 15 17.00
TOTAL 90 100.00

Monthly income of respondents

17% 12%
<10000
10000-20000
20000-30000
24% 30000-40000
20% >40000

27%

Factors Count Percentage

Short term 63 42.00

Long term 87 58.00
TOTAL 150 100.00
 TERM

42%
58%

SHORT TERM
LONG TERM

II. CustomerpreferringULIPVSTraditionalPlans

Factors No.ofrespondents Percentage

ULIP 13 65.00
Traditional Plans 7 35.00
TOTAL 20 100.00

customerpreffers

35%

65%
ULIP
Traditional plans
 III. SatisfactorylevelofcustomersonULIP

Factors No.ofrespondents Percentage

Completely satisfied 0 0
Satisfied 10 77.00
Somewhatsatisfied 2 15.00
Not at all satisfied 1 08.00
TOTAL 13 100.00

SatisfactorylevelofcustomersonULIP

8%
15%

Satisfied Somewhat satisfied

77% Not at all satisfied
 RECOMMENDETIONS

SBILiscomparativelyalargecompany.Heretheactivities
ofSBILarepracticedinahighlystructured.SBILmay
adoptcertainchangesregardingthefollowingissues.
 Mostofthecompanies,whichmeancompetitorsof
SBIL,arewellestablishedbecausetheyhavecome
longtimeago.SoSBILshouldtakemoreadvertising program.
 Mostofthecompanies,whichhavemanycustomer
servicecentresbutSBILhavenotsufficientservice centre . So, SBIL should establish
more service centres.
 CustomersarepreferringULIPmoreagainstthe
traditionalplansandtheyarealsosomewhatmore
satisfiedwiththoseULIPschemes.Sothecompany should provide more facilities on
ULIP toattract moreandmorecustomerstowardsthem.
Conclusion

As for the researcher’s observation through the study

researcherhasfoundoutthattheSBILisperformedaccording
totheneedsofthesituationpolicy,insomecausesthereare
strictandconfidentialpolicies,whileinsomeothercasesthere
isnotmuchstructuredpolicy,butmoreorlesspracticesatSBIL
hasdoneforthesakeoftheorganizationandthemanagers
andemployeesworkinginit.

SBILaimstoprovideefficient,consistentandcosteffective
servicetoconsumers,needstocarryonitsreputationinthe coming
years, the efficiency of the organization dependsnot
onlyontheefficientemployeesbutalsoonmaintainingand
developing their skills.

Although SBIL has some limitation still the organizationis

running its operation successfully and that indicates thatthe
system is adequate enough to maintain the efficiency so,we
canconcludethatSBILpracticesatisgoodenough,thoughnot a
perfectone.
Bibliography

 www.sbilife.co.in
 www.wikipedia.com
 www.irdai.gov.in