Main Project on birla sun life insurance

it includes all knowledge related to insurance sector. it includes project report on birla sun life insurance and on market potential of birla sun life in todays world.
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    INTRODUCTION What is insurance? “Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed amount of money on the happening of a certain event”.  Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premium collected from the insuring public and the insurance companies act as trustees to the amount collected. For example, in a life policy, by paying a premium to the insurer, the family of the insured person receives a fixed compensation on the death of the insured. Similarly, in car insurance and general insurance in the event of the car meeting with an accident, the insured receives the compensation to the extent of damage. Why should you take insurance? Insurance is desired to safeguard oneself and one‟s fami ly against possible losses on account of risks and perils. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. By taking life insurance a person can have peace of mind and need not worry about the financial consequences in case of any untimely death. Certain insurance contracts are also made compulsory by legislation. For example, motor vehicles act 1988, stipulates that a person driving a vehicle in a public place should hold a valid insurance policy co vering “act “risks. Another example of compulsory insurance  pertains to the environmental protection act, wherein a person using or carrying hazardous substances (as defined in the act) must hold a valid public liability (act) policy. Who provides insurance? In India, prior to liberalization insurance protection was made available through  public sector companies, namely Life insurance Corporation of India (LIC) and the four subsidiaries of general Insurance Corporation of India (GIC). By the passing of the IRDA  bill, insurance sector has been opened up for private companies to carry on insurance  business. What is the procedure to obtain insurance?    Approach the insurance companies directly or through insurance agents of the concern companies or through intermediaries.    Complete proposal FORM giving full details.    Submit date of birth certificate and other relevant documents. Insurance contracts are based on good faith i.e. the details furnished by the proposer are accepted in good faith and this will form the basis of the contract. What are the benefits of taking insurance? 1. Tax relief: under section 88 of Income tax act, a portion of premiums paid for life insurance policies are deducted from tax liability. Similarly, exemption is available for health insurance policy premiums. Money paid as claim including bonus under a life policy is exempted from payment of income tax. 2. Encourages savings: An insurance scheme encourages thrift among individuals. It    inculcates the habit of saving compulsorily, unlike other saving instruments, wherein the saved money can be easily withdrawn. 3. The beneficiaries to an insurance claim amount are protected from the claims of creditors  by affecting a valid assignment. 4. for a policy taken under the MWP act 1874, (married women‟s property act) a trust is created for wife and children as beneficiaries. 5. Life policies are accepted as a security for a loan, they can also be surrendered for meeting unexpected emergencies. 6. Based on the concept of sharing of losses, the society will benefit as catastrophic losses are spread globally. INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA) ACT, 1999 The Insurance Regulatory and Development Authority  (IRDA) is a national agency of the GOVT. OF INDIA, based in HYDERABAD. It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements. Mission of IRDA as stated in the act is to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. In 2010, the Government of India ruled that the Unit Linked Insurance Plans (ULIPs) will be governed by IRDA, and not the market regulator  Securities and Exchange Board of India.  FUNCTIONS OF IRDA: 1. Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or Cancel such registration. 2. Protection of the interests of the policy holders in matters concerning assigning of Policy, nomination by policy holders, insurable interest, settlement of insurance claim, Surrender value of policy and other terms and conditions of contracts of insurance. 3. Specifying requisite qualifications, code of conduct and practical training for Intermediary or insurance intermediaries and agents. 4. Specifying the code of conduct for surveyors and loss assessors. 5. Promoting efficiency in the conduct of insurance business. 6. Promoting and regulating professional organizations connected with the insurance and Re-insurance business. 7. Levying fees and other charges for carrying out the purposes of this Act. 8. Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business. 9. Control and regulation of the rates, advantages, terms and conditions that may be offered  by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938). 10. Specifying the form and manner in which books of account shall be maintained and    statement of accounts shall be rendered by insurers and other insurance intermediaries. 11. Regulating investment of funds by insurance companies. 12. Regulating maintenance of margin of solvency. 13. Adjudication of disputes between insurers and intermediaries or insurance intermediaries; 14. Supervising the functioning of the Tariff Advisory Committee. 15. Specifying the percentage of premium income of the insurer to finance schemes for  promoting and regulating professional organizations referred to in clause (f).   LITERATURE REVIEW Insurance is a must because of the uncertain future adversities of life. Accidents, illnesses, disability etc are facts of life that can be extremely devastating. Other than the hospitalization, medication bills these may run up it‟s the aftermath of the incident, the  physical well being of the individual that has to be taken into consideration. Will the individual be in a position to earn as before? A pertinent question, But what if he is not? Disability can be taken care of by insurance. Your family will not have to go through the grind due to your present inability. You think twice before taking the plunge into buying insurance. Is buying insurance a necessity now? Spending an 'extra' amount as premium at regular intervals where you do not see immediate benefits does not seem a necessity at the moment. May be later well you could  be wrong. Buying Insurance cannot be compared with any other form of investment. Insurance gives you a lifelong benefit and the returns will definitely come but only when you need it the most i.e. at the right time. Besides buying insurance early in life is one of the wise decisions you could take. Because the premium you would be paying would be comparatively lower. INSURANCE HISTORY INSURANCE IN INDIA The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. A brief history of the Insurance sector The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 core from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance    Company Ltd., the first general insurance company established in the year 1850 in Calcutta  by the British. COMPANY PROFILE SYMBOL Birla Sun Life Insurance: Birla Sun Life Insurance Company (BSLI) is an industry leader and ranks among the top five  private players with a market share of 8.4 per cent in terms of new business premium for FY 2009-10. Since its inception, it has been credited for innovation in products and services. The company offers a spectrum of products to meet the growing needs of individuals and group customers through a multichannel distribution network. In recent times, the company has quadrupled the distribution network to 600 branches and more than 170,000 advisors. With a rapidly growing national footprint, the company is now positioned to capture an increased market share in the fast growing life insurance market. BSLI enjoys the support of over 675 corporate agents that include Citibank NA, Deutsche Bank, Catholic Syrian Bank, Karur Vysya Bank, Development Credit Bank, Bajaj Capital, BSDL Insurance Advisory Services, Karvy Insurance, Anand Rathi and Angel Broking. The company offers a range of solutions that include protection, health, wealth with protection, children and retirement needs, and has an extensive pan-India reach with over 650 branches. Enjoying the trust of over two million customers, BSLI is ranked among the top five private life insurance companies in India today. The company has pioneered the launch of Unit Linked Life Insurance Plans (ULIPs) in India and was the first to introduce benefit illustrations, free-look period and issue policies through the internet. ADITYA BIRLA FINANCIAL SERVICE GROUP: The ADITYA Birla Group through ADITYA Birla Financial Services Group (ABFSG) has a strong presence across various financial services verticals that include life insurance, fund management, distribution and wealth management, security-based lending, insurance  broking, private equity and retail broking. In FY 2008-09, the consolidated revenues of ABFSG from these businesses crossed Rs.4763 crore, registering a growth rate of 36 per cent.   ABOUT SUN LIFE FINANCIAL INC: Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.


Jul 27, 2017
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