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 India’s 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 nation’s 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 India’s 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 Cardif’s 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 Life’s 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. SBI’s 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 the loss incurred, whereas in life insurance usually a fixed sum is

paid. Some types of insurance (such as product liability insurance) 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 societies—245 Indian and foreign insurers in all. The

LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

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 country’s GDP. A well-developed and

evolved insurance sector is a boon for economic development as it provides long- term funds for

infrastructure development 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 pay-

out 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 can’t 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 person’s 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 doesn’t 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 doesn’t 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 doesn’t 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 doesn’t 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 employee’s

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

customer’s 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 Life’s 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 Life’s 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 Life’s 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 holder’s 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

VisionTo be the most trusted and preferred life insurance provider.

MissionTo 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.

ValuesTrustworthiness | Ambition | Innovation | Dynamism | Excellence

State Bank of India (SBI) is a multinational banking and financial services company based in

India. The Bank is India’s 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 nation’s 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 India’s 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 Cardif’s 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 Life’s 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‘s 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

Consumer’s 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. India’s 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 Asia’s 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.Children’s 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 Company’s 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 Company’s 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 India’s 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 Asia’s 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) ProductsSBI 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

customer’s 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 Life’s 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 IRDA’s 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 TechnologyKeeping 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) InfrastructureAs 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, it’s

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., bank details, your

password, etc are not from SBI

Life Insurance

 

• CHECK E-MAIL

AUTHENTICITY - Reply to an e-

mail, only if it is received from the

domains - sbilife.co.in or sbi-

life.com

 

• Always deposit an Account Payee

cheque in favour of ’SBI Life

Insurance Co. Ltd. Policy No.

XXXXXXXXXXX’

 

• Make online transactions only on

secured websites with ’https’ and

   

• Do not share your confidential

information like password,

customer-id, date of birth, credit

card number, etc on e-mail or on a

phone call, event if it is from a

trusted source like your insurer,

IRDA, Income Tax Department,

Bank, Credit Card Company, etc

 

• Do not issue a bearer or blank

signed cheque to anyone

 

• Do not handover renewal premium

payment cash to any entity, except

the authorised collection centres

(City Union Bank, Karur Vysya

Bank, AP Online and MP Online

 

• Do not handover your credit card

to anyone or disclose your CVV or

PIN number to anyone

has a padlock symbol rather than

’http’ in the address bar.

 

 

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. 

DO’S

• 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.

Don’t 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)

DON’TS

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 co-

efficient 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 2005-

06 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.