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A
REPORT
ON
COMPARATIVE ANALYSIS OF LIFE
INSURANCE PRODUCT
Project Report Submitted to the Institute for Technology and Management
For partial fulfillment of the Degree of
POST GRADUATE DIPLOMA IN MANAGEMENT
BY
MR. AYUSH KHANDELWAL
Reg.No:ITM BAN2011PGDM20F0032
UNDER THE GUIDANCE OF:-
PROF. SAGAR BALA SAHOO MISS SINU GEORGE (PLACE COORDINATOR) (BUSINESS MANAGER)
INSTITUTE FOR TECHNOLOGY AND MANAGEMENT
1
BANGALORE-560076 2011-2013
Declaration
This is to declare that the Report entitled “A ORGANISATIONAL STUDY OF
BHARTI AXA LIFE INSURANCE COMPANY” has been made for the partial fulfillment of
the Course: Industry Internship Programme (IIP) in Semester II (Batch: 2011-13) by me at
BHARTI AXA LIFE INSURANCE under the guidance of Prof. SAGAR BALA
SAHOO(Manager Placements).
I confirm that this Report truly represents my work undertaken as a part of my Industry Intern -
ship Programme (IIP). This work is not a replication of work done previously by any other per-
son. I also confirm that the contents of the report and the views contained therein have been dis-
cussed and deliberated with the Faculty Guide.
Signature
2
AYUSH KHANDELWAL
Reg. No ITM-BAN2011PGDM20F0032
Certificate
This is to certify that Mr. AYUSH KHANDELWAL Reg.No. ITM BAN2011PGDM20F0032 has completed the Report titled A ORGANISATIONAL STUDY OF BHARTI AXA LIFE IN-
SURANCE COMPANY under my guidance for the partial fulfillment of the Course: Industry In-ternship Programme (IIP) in Semester II of the Master of Business Administration
3
Date :- SAGAR BALA SAHOO
Place:- Bangalore (Manager Placements)
ACKNOWLEDGEMENT
As a part of the MBA curriculum at Indian Institute Of Planning And Management Business
School, the ‘Summer Internship Program’ enables the students to enhance their skills, expand
their craniums by applying various theories, concepts and laws to real life scenario which would
further prepare them to face the extremely ―Competitive Corporate World‖ in the near future.
I take this opportunity to express my gratitude towards certain key people for their constant
guidance and support, without which the project would not have been a success.
I would like to show my gratitude to my Mentor Prof. SAGAR BALA SAHOO (Placement
coornidator) and Mrs.Latha Balasubramanian, Branch Head, Bharti AXA Life Insurance
for giving me an opportunity to be a part of a prestigious organization, and for her constant help
and support throughout the course of my project.
I extend my sincere thanks to my friends whose guidance and encouragement was of great help
in meeting the intended objective of my project. The time I was given and the encouragement I
have received, through the discussions and debates with them have proved to be profitable for
me.
I am forever indebted to my parents who provided me with the support, inspiration, time and
guidance throughout my life.
4
AYUSH KHANDELWAL
PGDM-2011-13
TABLE OF CONTENTS
1) EXECUTIVE SUMMARY
2) INTRODUCTION
2.1 INDUSTRY OVERVIEW
Indian Scenario
Global Scenario
Players in the Industry with the Market Shares
2.2 COMPANY OVERVIEW
Mission, Vision of the Company
3) ORGANIZATION STRUCTURE OF THE COMPANY
Products and Services offered by the Company
4) SWOT OF THE COMPANY
5) FINDINGS
5
6) RECOMMENDATIONS
7) BIBLIOGRAPHY
CHAPTER 1:EXECUTIVE SUMMARY
6
1) Executive Summary:
The objective of the project is to know the present status of the Life Insurance products in the
market, the awareness and perception levels among the consumers. The present scenario of in-
surance sector is not only confined to selling of life insurance products, advertising and sales
promotion but it also includes consumer satisfaction as a whole.
According to the study of the market, it is being observed that markets are doing well in invest-
ing in life insurance products. In the coming future a good and proper financial planning is re-
quired to invest money in financial products because there is a good potential in the market to in-
vest.
For gathering the primary data questionnaire was administered to know the consumer perception
of the Life Insurance Products, their investment patterns and general suggestions by the con-
sumers and secondary data is collected through Internet, Magazines, Company Website and other
advertising tools.
7
CHAPTER 2:
INTRODUCTION
8
2) Introduction:
Insurance constitutes one of the major segments of the financial market. Insurance services play
predominant role in the process of financial intermediary. Today insurance industry is one of the
most growing sectors in India. There is lot of potential in the Indian Insurance Industry. There
are many issues, which require study. The scope of the study of insurance industry of India
would be very great as there are ongoing developments in the industry after the opening of the
sector. In the past few years this sector has undergone many changes, like offering better ser-
vices, quick settlement of the policies taken by the consumers, following the regulations put by
the IRDA( Insurance Regulatory and Development Authority) etc… In the present world many
insurance companies have entered the market and the environment has become more and more
competitive. Creation of differentiation is becoming tough for the consumers as all companies
are offering the same kind of products and services.
Objective of the Project:
The objectives of the project are as mentioned below.
1. to make the comparative analysis of life insurance products offered by Bharti AXA with
that of its competitors
2. to know the various types, their features and benefits of different life insurance products
3. to understand the investment pattern of different levels of investors
4. to find out the consumer perception on different life insurance products and determine
their preference towards public insurance companies and private insurance companies.
9
The major market players which are considered for this project are based on the market shares
and their performance in the insurance sector. They are as follows.
1. Bharti AXA Life Insurance
2. HDFC Standard Life
3. ICICI Prudentials
4. Birla Sun Life Insurance
5. Life Insurance Corporation of India
6. SBI Life Insurance
The study is based on both the primary and secondary data.
The primary data were collected using a questionnaire. This was prepared to know the consumer
perception of life insurance products. The questionnaire was clearly explained to the respondents
in detail and they were asked to give the perception of life insurance products as delivered by the
life insurance companies. These questions were prepared for effective analysis of the data. This
was administered through mail and in person to about 50 respondents. These comprises of em-
ployees of MNC’s and government employees from Bangalore.
The secondary data is collected through Internet, Magazines and other advertising tools.
The study is done to evaluate and analyze the findings so as to know about the recent trends in
the Insurance Sector.
2.1 Industry Overview:
2.1.1 About Insurance Industry:
Insurance is a contract between two parties whereby one party called insurer undertakes in ex-
change for a fixed sum called premiums, to pay the other party called insured a fixed amount of
money on the happening of a certain event. Insurance is a protection against financial losses aris-
10
ing on the occurrence of an unexpected event. Insurance companies collect premiums to provide
for the protection. For example, in a Life Policy, by paying the premium to the insurer, the fam-
ily of the insured person receives compensation on the death of the insured.
It is a system by which the losses suffered by a few are spread over many, exposed to similar
risks. It is also a protection against financial loss arising on the happening of an unexpected
event. The companies collect premiums to provide for its protection. Companies act as trustees to
the collected. If there is any loss, then it is paid out of the amount premiums collected from the
insuring public.
Insurance is desired to safeguard oneself and one’s family 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 accidental death. Some insurance contracts are
made compulsory by legislation. Some of the insurance contracts which are made compulsory
are Motor Vehicle Insurance, Environmental Protection Act etc…
Insurance in India:
Insurance is a federal subject in India and has history dating back to 1818. Life and general in-
surance in India is still a nascent sector with huge potential for various global players with the
life insurance premiums accounting to 2.5% of the country’s GDP while general insurance pre-
miums to 0.65% of India’s GDP. Currently, the largest life insurance company is still owned by
the Government of India. The Indian insurance sector is considered as a booming sector in the
coming future with every global insurance company wanting to have a lion’s share.
History of Insurance:
Insurance in India has its history dating back to 1818 when Oriental Insurance Company was
started by Europeans in Kolkata to cater the needs of European community. Pre-independent era
11
in India saw discrimination among the life of the foreigners and Indians with the higher premi-
ums being charged with the latter. In 1870, the Bombay Mutual Life Assurance Society, the
first Indian insurance company covered Indian lives at normal rates. The Life Insurance Compa-
nies Act and Provident Fund Act were passed to regulate the insurance business in 1912. The
oldest insurance company in India is National Insurance Company Ltd, which was founded in
1906 is still doing the business even today. The insurance industry earlier consisted of only two
types of insurers Life insurers i.e Life Insurance Corporation of India (LIC) and General Insurers
i.e General Insurance Corporation of India (GIC). GIC has four subsidiary companies.
In December 2000, these subsidiary companies have been separated from the parent company
and made as independent insurance companies: Oriental Insurance Company Limited, New India
Assurance Company Limited, National Insurance Company Limited and United India Insurance
Company Limited.
Advantages of Life Insurance
1. Protection against risk of untimely death
2. Protection during old age
3. Forced savings
4. Educational requirements and charity
5. Nomination and assignment
6. Loans from the investment company
7. Investment options
8. Tax benefits
12
Types of Insurance Products:
1. Term Assurance Plan
2. Endowment Assurance Plan
3. Money Back Policy
4. Whole Life Plan
5. Pension Plan
6. Child Plan
7. Unit Linked Insurance Plan
8. Health Plan
Different Insurance Companies in India:
In the present scenario the insurance sector is an upcoming sector. The insurance sector got liber-
alized in 2000 after about 50 years. Insurance sector was once a monopoly with LIC as the only
company. But now the market opened up and large number of insurance both (private and pub-
lic) has entered the Indian market. There are about 15 private life insurance companies that have
entered the sector. After their entry the market share of LIC has considerably got reduced. The
private companies have improves their market share to 18% and able to expand their market
growing at about 30% per annum. Private players have made innovations in market channels, ad-
vertising of products, training agents and employees in providing services to the consumers,
opened outlets in rural areas, creating awareness among people about insurance and its benefits.
13
The various private life insurers are
1. Aviva Life Insurance Co. India Pvt Ltd.
2. Bajaj Allianz Life Insurance Co. Ltd.
3. Bharti AXA Life Insurance Co. Ltd
4. Birla Sun Life Insurance Co. Ltd
5. HDFC Standard Life Insurance Co. Ltd
6. ICICI Prudential Life Insurance Co. Ltd
7. IDBI Fortis Life Insurance Co. Ltd
8. ING Vysya Life Insurance Co. Ltd
9. Kotak Mahindra Old Mutual Life Insurance Ltd.
10. Max New York Life Insurance Co. ltd
11. Met Life India Insurance Co. Ltd
12. Reliance Life Insurance Co. Ltd
13. SBI Life Insurance Co. Ltd
14. Shriram Life Insurance Co. Ltd
15. Tata AIG Life Insurance Co. Ltd
The various other general insurance companies are
1. National Insurance Company Ltd
2. Reliance General Insurance
3. Oriental Insurance Company
4. United India Insurance Co. Ltd
5. New India Assurance Co. Ltd
6. Bajaj Allianz General Insurance Co. Ltd
7. ICICI Lombard General Insurance Ltd
14
Difference between Life Insurance and non Life Insurance:
Two types of insurance people commonly purchase is
1) Life Insurance 2) General Insurance
Life insurance is a non personal insurance contract. This means that the policyholder and the
person being insured do not have to be the same person whereas General insurance is a personal
contract where the insurance company contracts with you directly for insurance protection.
Life insurance insures your life or the life of someone that you have an economic interest in, like
your spouse, children, siblings or business partners. When the insured individual dies, the life in-
surance policy pays a death benefit that is fixed. This is called a valued contract. A valued con-
tract pays a fixed sum of money, regardless of the nature of the loss insured by the contract. Gen-
eral insurance insures homes, automobiles and other personal property. This type of insurance is
sometimes referred to as “property and casualty insurance.” General insurance is indemnity in-
surance. Indemnity insurance pays just enough money to you to repair or replace the insured
property.
The benefit of life insurance is that it pays off any financial obligations you have left after you
die. It can pay more than that, however, because life insurance pays a fixed amount. Death bene-
fits can be used to create the wealth for the surviving beneficiaries. General insurance is benefi-
cial in that the insurance ensures that, almost regardless of the damage done, that the property
will be repaired or replaced. While general insurance generally has a maximum payout deter-
mined by the value of your property, it does not pay a fixed amount.
Market Players Along With Market Shares
15
The top 5 private life insurance companies in India are,
ICICI Prudential Life Insurance
Bajaj Allianz
SBI Life [Part of the SBI group, though no direct interference of Govt of India]
HDFC Standard Life
Reliance Life
Figure 1: Market Share Of Life Insurance Companies
Website: http://1.bp.blogspot.com/-qyxg7ZBvGjM/Tc56NlxlqwI/AAAAAAAAAbc/g9oXnlMjBW4/
s1600/marketshare2011pol_2.jpg
Source: IRDA (depending upon number of policies as on 2010-11)
16
2.2 Company Profile:
2.2.1 About the Company:
Bharti AXA Life Insurance is a joint venture between Bharti, one of India‘s leading business
groups with interests in telecom, agri business and retail, and AXA, world leader in financial
protection and wealth management. The joint venture company has a 74% stake from Bharti and
26% stake of AXA.
The company launched national operations in December 2006. Their business philosophy is built
around the promise of making people "Life Confident".
The Company Profile:
NAME OF THE COMPANY: BHARTI AXA LIFE INSURANCE COMPANY
HEAD OFFICE: Goregaon (East), Mumbai, India
FOUNDED: The company came into existence in DEC 2006 by the
merger of India‘s telecom major BHARTI AIRTEL with a
74 % stake and the global insurance majors AXA with a
26% stake in the company.
VISION OF THE COMPANY: To be the leader and one of the preferred companies for
financial protection and wealth management in India.
VALUES OF THE COMPANY:
Professionalism
17
Innovation
Team Spirit
Pragmatism
CHAIRMAN: Mr. Sunil Bharti Mittal
CEO: Mr. Sandeep Ghosh
BRANCHES: Currently the company has 198 branches in INDIA.
EMPLOYEES: The Company has more than 5200 employees all over
India.
About Bharti:
Bharti Enterprises is one of India’s leading business groups with interests in telecom, agricultural
business, financial services, and retail. Bharti has been a pioneering force in the telecom sector
with many firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one of
India’s leading private sector providers of telecommunications services with an aggregate of over
110 million customers, spanning Mobile services, Telemedia services and Enterprise services.
Bharti Airtel has been ranked amongst the best performing companies in the world in the Busi-
nessWeek IT 100 list 2007. Bharti Teletech is the country’s largest manufacturer and exporter of
telephone terminals. Bharti has a joint venture – Bharti Del Monte India (P) Ltd – with Del
Monte Foods India Pvt. Ltd., to offer fresh and processed fruits and vegetables in the domestic as
well as international markets including Europe, USA and Middle East. Bharti has recently for-
ayed into retail business under Bharti Retail Pvt. Ltd. It also has a joint venture - Bharti Wal-
Mart Private Ltd. - with Wal-Mart for wholesale cash-and-carry and back-end supply chain man-
agement operations in India.
18
About AXA:
AXA Group is a worldwide leader in Financial Protection. AXA’s operations are diverse geo-
graphically, with major operations in Europe, North America and the Asia/Pacific area. In 2010,
total revenues amounted to Euro 91 billion and total revenues underlying earnings to Euro 3.9
billion.The above mentioned companies Bharti Enterprises and AXA are the promoters of Bharti
AXA Life Insurance Company.
Vision and values followed by the company:
19
CHAPTER 3
Organizational Structure
20
Global and Indian Operations of Bharti AXA Life Insurance:
Bharti AXA Life Insurance Company Ltd., the joint venture of Bharti Enterprises and AXA Asia
Pacific Holdings Ltd., has no operations outside India. However, AXA group, the majority stake-
holder in AXA Asia Pacific Holdings Ltd., is a global player in the life and non-life insurance
business, asset management and other financial services with presence in all habitable continents
and over 95 million clients worldwide. It is 9th largest company in world in terms of revenue as
per Fortune Global 500 list of 2010.
21
Bharti AXA Life Insurance Company Ltd. has a pan-India presence with around 100 offices na-
tion-wide. It offers both traditional and ULIP plans to its existing customers and the prospects.
Under traditional plan, it offers both term as well as endowment policies. As per the revenue ac-
count of the company, the net premium for first nine months of FY2010 was INR 539.69 crore as
against INR 393.98 crore for the same period in the last fiscal, a growth of 37%. As per the latest
estimates, the market share of the company in terms of net premium was 0.4% in last fiscal.
Products and Services Offered by Bharti AXA Life Insurance:
Bharti AXA Life Insurance offers both individual plans and group plans as their products and
services for the customers.
The Individual Plans are as follows:
Protection Plans:
1. Bharti AXA Life Elite Secure
2. Bharti AXA Life Secure Confident
3. Bharti AXA Life Family Income Secure
4. Bharti AXA Life Protect Plus
5. Bharti AXA Premium Waiver Rider
Wealth Creation with Protection:
Bharti AXA Life Child Plans
Bharti AXA Life Bright Stars EDGE
Bharti AXA Life Future Champs
22
Bharti AXA Life Guaranteed Plans
Bharti AXA Life Save Confident
Bharti AXA Life True Wealth
Bharti AXA Life Aajeevan sampati
Health Plan:
Bharti AXA Life Easy Health
Retirement Plan:
Bharti AXA Life Wonder Years Retirement Plan
The Group Plans are as follows:
Life Insurance:
Bharti AXA Life Shield
Bharti AXA Life Sanjeevani
Credit Protection:
Bharti AXA Life Credit Secure
Bharti AXA Life Mortgage Credit Shield
Bharti AXA Life Credit Shield
Bharti AXA Life Premier Protect Home Shield
Health Plan:
Bharti AXA Life Swasthya Sanjeevani
23
INTRODUCTION ABOUT THE PLANS
1. CHILD PLANS
BHARTI AXA LIFE BRIGHT STAR PLUS
Features:
Entry Age(Last Birthday) Minimum Age 18 years.
Policy Term (PT) 7-25 years, subject to maximum maturity
age of 70 years
Premium Payment Term(PPT) 3 years/5 years/equal to policy term
Annual Premium Minimum Rs. 15000 if PPT = PT
Minimum Rs. 50,000 if PPT = 3years/5years
Maximum=No Limit
Top-up Premium Minimum: Rs. 1,000;
Maximum: 25% of total regular premium paid
Sum Assured (SA) Minimum: 5* Annual Premium
Maximum: 10*Annual premium
Riders Available In Built: Waiver of Premium
Optional:
Accidental Death Benefit (ADB) Rider.
Comprehensive Health Benefit (CHB) Rider.
24
Premium FrequencyYearly, Half yearly, Quarterly, Monthly
Fund Options Grow money plus fund, Growth opportunities plus fund, Build India fund, Save and Grow money fund, Steady money fund, Safe money fund.
Partial Withdrawal Regular Premium: After 5 Policy Years
Top-up Premium: After 3 Years
Minimum: Rs. 1000
Maximum: Fund Value should not be less
than 120% of annual premium.
Switches 1st 12 switches free of charge in a Policy year
Subsequent switches are charged at Rs.100
per switch is levied.
Minimum switch amount: Rs. 1000
Benefits:
Death Benefit
-Sum Assured will be paid immediately.
-All the future premiums will be paid by Bharti AXA Life in to the policy fund value.
Jumpstart Benefit
The Jumpstart benefit is credited to the investment funds during the policy term depend-
25
ing upon the policy term option chosen.Policy Term Jumpstart Benefit Credited to investment
Funds
7 years & 10 years 5% of average fund value. At maturity.
15 years 7% of average fund value At maturity.
20 years & 25 years 7% of average fund value. 5 years before maturity
Tax BenefitThe premium paid will be eligible for tax benefit as per Section 80C, 80D and Section 10(10D) of the Income Tax Act, 1961.
Charges:Policy Administration Charges: This charge is deducted by cancellation of units from the policy fund value on monthly basis. The charge is Rs. 60 per month increasing at 5% p.a. on every policy anniversary.
Fund Management Charges:
Fund Name Percent of Policy Fund Value (p.a.)
Growth Opportunities Plus 1.35%
Grow Money Plus 1.35%
Build India 1.35%
Save and Grow Money 1.25%
Steady Money 1.00%
Safe Money 1.00%
26
Allocation Charges:
Regular premium:
Allocation charges for PT
Policy
Term Pol-
icy Year
Annual premium 7 Years 10 Years 15 Years 20 Years 25 Years
Year 1 >100000 28% 35% 35% 45% 50%
<=100000 25% 32% 32% 36% 50%
Year 2 Both Premium
bands
9% 15% 15% 24% 24%
Year 3 Both Premium
bands
5% 5% 5% 5% 5%
Year 4++ 0% 0% 0% 0% 0%
Surrender Charge:
This charge is as a percentage of fund value.
Policy Term
Policy Year7 Years 10 Years 15 Years 20 Years 25 Years
Years 1 75% 75% 91% 91% 91%
Years 2 50% 50%80%
80% 80%
Years 3 25% 25% 50% 50% 50%
Years 4 0% 0% 25% 25% 25%
27
Years 0% 0% 10% 10% 10%
Years 0% 0% 0% 0% 0%
If the policy is surrendered before completion of first three policy years, surrender value
will be payable after completion of three policy years.
ICICI PRU SMART KID UNIT-LINKED REGULAR PREMIUM
Features:
Entry Age(Last Birthday)Parent: 20 – 60 years
Child: 0 – 15 years
Policy Term (PT) Parent: 75 years
Child: 19 – 25 years
Premium Payment Term(PPT) 10 -25 years, subject to maximum maturity age of
75 years
Annual Premium Minimum Rs. 10000
Maximum=No Limit
Top-up Premium Minimum: Rs. 2,000;
28
Maximum: 25% of total regular premium paid
Sum Assured (SA) Minimum: 1,00,000
Maximum: 5*Annual premium
Riders Available Waiver of Premium
Accidental Death & Disability
Benefit (ADDB) Rider.
Income Benefit(IB) Rider
Premium FrequencyYearly, Half yearly, Quarterly, Monthly
Fund Options R.I.C.H II, Multiplier II, Flexi Growth II,
Flexi Balanced II, Balancer II, Protector II, Pre-server, Return Guarantee Fund.
Partial Withdrawal Regular Premium: After 5 Policy Years
Top-up Premium: Ant time during PT
Minimum: Rs. 2000
Maximum: 25% of Fund Value
1 PW in a Policy Year
Maximum 5PW during entire PT
29
Switches 1st 4 switches free of charge in a Policy year
Subsequent switches are charged at Rs. 100
per switch
Minimum switch amount: Rs. 2000
Benefits:
Death Benefit:
-Sum Assured will be paid immediately.
-All the future premium will be waived and paid by the company till maturity of the policy.
Maturity Benefit:
Fund value pertaining to Regular Premium and Top-up Premium will be paid at the time
of maturity.
Tax Benefit:
The premium paid will be eligible for tax benefit as per Section 80C, 80D and Section 10(10D)
of the Income Tax Act, 1961.
Charges:
Policy Administration Charges:
Policy administration charge will be Rs. 60 per month.
Fund Management Charges:
This charge is levied on each of the investment funds and is adjusted daily in the unit price calcula-
tion.
30
Fund Name Percent of Policy Fund Value (p.a)
Protector II 0.75%per annum
Preserver 0.75%per annum
Balancer II 1.00%per annum
Flexi Balanced II 1.00%per annum
Flexi Growth 1.50%per annum
Multiplier II 1.50%per annum
Return Guarantee 1.50%per annum
Allocation Charges:
Regular premium:
Annual Pre-
mium
Year 1 Year 2 – 5 Year 6 – 10 Year 11 Onwards
<20,000 20% 5% 2% 1%
>=20,000 to
<50,000
19% 5% 2% 1%
>=50,000 18% 5% 2% 1%
Top-up Premium:
The allocation charge shall be 1% of top-up premium.
Surrender Charges:
Completed policy years for Surrender value as a % of
Fund ValueSurrender Charge
31
which premiums are paid
Less than 1 year 0% 100%
1 year 25% 75%
2 year 40% 60%
However, this surrender value would be payable only after completion of three policy
years or whenever the policy is surrendered thereafter.
Following are the surrender values and charges applicable after payment of 3 full years of pre-
mium.
No. of completed policy
years
Surrender value Surrender Charge
3 policy years 9 4%
4 policy years 9 2%
5 policy years 1 0%
SBI LIFE- UNIT PLUS CHILD PLAN
Features:
Entry Age(Last Birthday) Parent: 18 – 57 years
32
Child: 0 – 15 years
Policy Term (PT) Min.: 8yrs or (18 – child‘s age at entry)
whichever is higher
Max. : 25 yrs
Premium Payment Term(PPT) 3yrs/ 5yrs/ 7yrs/ Till the child attains 18yrs
Annual Premium Minimum Rs. 84,000; for PPT = 3yrs
Minimum Rs. 60,000; for PPT = 5yrs Minimum Rs.
48,000; for PPT = 7yrs Minimum Rs. 12,000; for
PPT = PT Maximum = No Limit
Top-up Premium Minimum: Rs. 2,000;
Maximum: 25% of total regular premium paid.
Sum Assured (SA) Minimum: 5*Annual Premium
Maximum: For age 18 – 40 yrs = 25*AP For age 41
– 50 yrs = 20*AP
For age 51 – 57 yrs = 15*AP
Riders Available Waiver of Premium
Accidental Death & Disability(ADD) Rider
Dhanvantri Supreme (CI) Rider.
Maturity Age Parent: 65 years
Child: 18 - 25 years
33
Sum Assured (SA) Minimum: 5*Annual Premium
Maximum: For age 18 – 40 yrs = 25*AP For age 41
– 50 yrs = 20*AP
For age 51 – 57 yrs = 15*AP
Fund Options Equity Optimizer Fund, Equity Fund, Bond
Fund, Growth Fund, Balanced Fund.
Partial Withdrawal (PW) Regular Premium: After 3 Policy Years
Top-up Premium: Any time during PT Minimum: Rs. 2000,
Maximum: 25% of Fund value
4 PW are free in a Policy Year
Maximum 5 PW during entire PT
Switches 1st 4 switches free of charge in a Policy year
Subsequent switches are charged at Rs. 100 per switch.
Minimum switch amount: Rs. 10,000.
Benefits:
Death Benefit:
34
Sum Assured will be paid immediately.
The entire future premium will be waived and paid by the company till maturity of the policy.
Maturity Benefit:
Fund value pertaining to Regular Premium and Top-up Premium will be paid at the time of
maturity.
Loyalty Benefit:
To celebrate the 18th birthday of your child, SBI Life offer loyalty units by way of free
allocation of units based on the average of last 24 months Fund value.
0.15*average last 24 months fund value*No. of policy till age 18
Tax Benefit:
The premium paid will be eligible for tax benefit as per Section 80C, 80D and Section 10(10D)
of the Income Tax Act, 1961.
Charges:
Policy Administration Charges:
Policy administration charge will be Rs.60 per month. This charge will increased by 2% per an-
num for each subsequent year on the 1st business day of the policy month following 1st April
each year, subject to maximum of Rs.300 per month.
Fund Management Charges:
This charge is levied on each of the investment funds and is adjusted daily in the unit price calcu-
lation.
Fund Name Percent of Policy Fund Value (p.a.)
Equity Fund 1.50% per annum
35
Equity Optimiser Fund 1.50% per annum
Bond Fund 1.00% per annum
Balanced Fund 1.25% per annum
Growth Fund 1.35% per annum
Allocation Charges:
Regular premium:
Annual
Premium
Year 1 Year 2 – 3 Year 4 – 7 Year 8 Onwards
Up to 500,000 18% 5% 2% 1%
500,100 to
10,00,000
17% 5% 2% 1%
10,00,000 &
Above
15% 5% 2% 1%
Top-up Premium:
The allocation charge shall be 1% of top-up premium.
Surrender Charges:
Year 2 3 4 5 6 & Onwards
Surrender 25% 15% 4% 2% Nil
36
charges
2. PENSION PLANS
Bharti AXA Life Dream Life Pension Plus:
Features:
Entry Age Min: 18 years
Max: 75 years
Vesting/Maturity Age Min: 40 years
Max: 90 years
Policy Term Min: 10 years
Max: Vesting age chosen
Annual Premium Min: Rs.12,000 For PT > 20 years
Rs.15,000 For PT > 15 years
Rs.10,000 For PT< 15 years
Rs. 50,000 for Single Premium
Max: No Limit
Additional Regular Premium Minimum: Rs.1000
37
Maximum: No Limit
Top-up Premium Minimum: Rs.1000
Maximum: No Limit
Fund Options Grow Money Pension Plus, Growth Opportunities Pension Plus, Build India Pension Fund, Save and grow Money Pension, Steady Money Pension.
Switches 1st 12 switches free of charge in a Policy year
Subsequent switches are charged at Rs. 100 per switch,
Minimum switch amount: Rs. 1000.
Benefits:
Death Benefit:
In case of death during the policy term, the nominee will get the entire fund value and the policy
will cease to exist.
Maturity Benefit:
Take up to 1/3rd of the fund value as lump sum and use the balance to purchase an annuity from
Bharti AXA Life.
Buy an annuity from any other life insurance company.
Tax Benefit:
Tax benefit will be as per Section 80C/80CCC (1) & Section 10(10A)(3) of the Income Tax Act,
1961.
Charges:
38
Policy Administration Charges:
Policy administration charge will be Rs.60 per month (Rs.35 in case of Single Premium
policies). This charge will increase from 1st Jan every year by 5%.
Fund Management Charges:
The charge is levied on each of the investment funds and adjusted in a unit price calculation on a daily
basis.
Fund Name Fund Management Charge (p.a.)
Grow Money Pension Plus 1.35%
Growth Opportunities Pension Plus 1.35%
Build India Pension Fund 1.35%
Save and Grow Money Pension 1.25%
Steady Money Pension 1.00%
Safe Money Pension 1.00%
Allocation Charges:
Annual Regular Premium:
Annual Regular
Premium Band
Year 1 Year 2-4 Year 5+
Rs.12,000 – 99,999 19% 9% 0%
Rs.1,00,000 & above 12% 9% 0%
39
Single Premium:
Single Premium Band Premium Allocation Charge
Rs.50,000 – 99,999 6%
Rs.1,00,000 & above 2.5%
Top-up Premium:
The allocation charge shall be 2% of top-up premium
Surrender Charge:
The surrender charge is applicable as and when customer surrenders his policy. The surrender
value that you will receive will be the policy fund value less this charge. If policy is surrendered
within first three years policy years then the surrender value as on the date of intimation of
surrender will be paid only after completion of three policy years.
Surrender Charge as a Percentage of Policy Fund Value.
Policy Year
Annual Regular Premium Single Premium
1 91% Surrender Not Allowed
2 50% Surrender Not Allowed
3 30% Surrender Not Allowed
4 15% 5%
5 10% 3%
6 NIL 0%
40
ICICI PRU LIFE TIME SUPER PENSION
Features:
Entry Age Min: 18 Years
Max: 65 Years
Vesting/Maturity Age Min: 45 years
Max: 75 years
Policy Term (PT) Min: 10 years
41
Max: 57 years
Annual Premium(APE) Min: 10,000
Max: No Limit
Sum Assured(SA) Minimum: 100,000
Maximum: PT*Annual Premium
Top-up Premium Minimum: 2000
Maximum: No Limit
Fund Options Pension R.I.C.H. II, Pension Flexi Growth II,
Pension Multiplier II, Pension Flexi Balanced
II, Pension Balancer II, Pension Protector II,
Pension Preserver, Pension Return Guarantee
Switches 1st 4 switches free of charge in a Policy year
Subsequent switches are charged at Rs. 100 per switch
Minimum switch amount: Rs. 2000
Riders Available Accidental Death & Disability Rider, Waiver
of Premium Rider
Benefits:
Death Benefit:
42
The Nominee will get the higher of sum assured or fund value as lump sum where spouse is not
the nominee.
Where spouse is nominee, this amount can be given as lump sum or can be used to purchase an
annuity from the company. Alternately, 1/3rd of this value can be taken as lump sum and balance
can be used to purchase an annuity.
Maturity Benefit:
Take up to 1/3rd of the fund value as lump sum and use the balance to purchase an annuity from
ICICI Prudential.
Buy an annuity from any other life insurance company.
Tax Benefit:
Tax benefit will be as per Section 80CCC & Section 10(10A) of the Income Tax Act, 1961.
Charges:
Policy Administration Charges:
Policy administration charge will be Rs. 40 per month.
Fund Management Charges:
The charge is levied on each of the investment funds and adjusted in a unit price calculation on a daily
basis.
Fund Name Fund Management Charge (p.a.)
Pension R.I.C.H. II 1.50% per annum
Pension Flexi Growth II 1.50% per annum
Pension Multiplier II 1.50% per annum
Pension Return Guarantee Fund 1.50% per annum
Pension Balancer II 1.00% per annum
43
Pension Preserver 0.75% per annum
Allocation Charges:
Regular premium:
Annual
Premium
Year 1 Year 2 Year 3 – 10 Year 11
Onward
10,000-19,999 20% 9% 1% Nil
20,000-49,999 17% 9% 1% Nil
50,000 & above 14% 9% 1% Nil
Top-up Premium:
The allocation charge shall be 1% of top-up premium.
Surrender Charge:
Completed policy years
for which premiums
Surrender value as a %
of Fund Value
Surrender Charges
Less than 1 year 0% 100%
1 25% 75%
2 40% 60%
44
However, this surrender value would be payable only after completion of three policy years or
whenever the policy is surrendered thereafter.
Following are the surrender values and charges applicable after payment of 3 full year‘s pre-
mium.
No. of completed policy Surrender Value Surrender Charge
3 policy years 96% 4%
4 policy years 98% 2%
5 policy years & above 100% 0%
SBI LIFE UNIT PLUS II PENSION
Features:
Entry Age Min: 18 Years
Max: 65 Years
Vesting/Maturity Age Min: 50 years
Max: 70 years
Policy Term (PT) Min: 5 years
Max: as per the vesting age chosen
Annual Premium(APE) Min: 24,000
45
Min: 25,000 for single premium
Max: No Limit
Sum Assured(SA) Single Premium Mode
Age 18 – 35 125% of SP. MAX: 10
lakh
36 – 45 years Same, MAX: 5 lakh
40 – 60 years Same, MAX: 12 lakh
Regular Premium Mode
Age 18 – 35 MAX: 10 lakh
36 – 45 years MAX: 5 lakh
40 – 60 years MAX: 1.2 lakh
Top-up Premium Minimum: 5000
Maximum: No Limit
Fund Options Equity Optimizer, Equity Pension, Bond
Pension, Growth Pension, Balanced Pension
Switches 1st 4 switches free of charge in a Policy year
Subsequent switches are charged at Rs. 100 per switch
Minimum switch amount: Rs. 10,000
46
Riders Available Accidental Death & Permanent Disability
Rider, Dhanvantri Supreme (Critical illness)
Rider
Benefits:
Death Benefit:
The Nominee will get the higher of sum assured or fund value.
Maturity Benefit:
Take up to 1/3rd of the fund value as lump sum and use the balance to purchase an annuity from
SBI Life. Buy an annuity from any other life insurance company.
Tax Benefit:
Tax benefit will be as per Section 80CCC (1) of the Income Tax Act, 1961.
Charges:
Policy Administration Charges:
Policy administration charge will be Rs.60 per month. This charge will increased by 2% per
annum for each subsequent year on the 1st business day of the policy month following 1st April
each year, subject to maximum of Rs.300 per month.
Fund Management Charges:
The charge is levied on each of the investment funds and adjusted in a unit price calculation on a daily
basis.
Fund Name Fund Management Charge (p.a.)
47
Equity Optimizer Fund 1.50% per annum
Equity Pension Fund 1.50% per annum
Bond Pension Fund 1.00% per annum
Growth Pension Fund 1.35% per annum
Balanced Pension Fund 1.25% per annum
Allocation Charges:
Regular premium:
Annual
Premium
Year 1 Year 2 & 3 Year 4 & 5 Year 6-10 Year 11
Onward
24,000 - 99,999
15% 7.5% 5% 2% Nil
100,000 -
49,999
12% 5% 5% 2% Nil
500,000 & above
9% 3% 3% 2% Nil
48
Single Premium:
Annual Premium Allocation Charges
25,000-100,000 4%
100,000-500,000 3%
500,000 & above 2%
Top-up Premium:
The allocation charge shall be 1% of top-up premium received during 1st 10 policy years. 11th
onward allocation charges will be nil.
Surrender Charge:
The surrender charge is applicable as and when customer surrenders his policy. The sur-
render value that you will receive will be the policy fund value less this charge
Policy Year For Regular Premium Mode
For single Premium Mode
Year 4 & 5 2% of F.V. Nil
Year 6-10 1% of F.V. Nil
11 onwards Nil Nil
49
3. PROTECTION PLANS
BHARTI AXA LIFE SECURE CONFIDENT
Features:
Entry Age Minimum: 18 years
Maximum: 55 years
Maturity Age Minimum: 28 years
Maximum: 65 years
Policy Term (PT) 10 – 30 years
Sum Assured (SA) Minimum: 5 lacs
Maximum: Rs.24,99,999
Premium Frequency Single
Regular: Yearly, Half-yearly, Quarterly & Monthly
Riders Available In-Built: No
Additional: Accidental Death Benefit, critical illness benefit rider
Benefits:
Death Benefit:
50
In case of your unfortunate death during the policy term, nominee will receive the full Sum
Assured.
Maturity Benefit:
As this is a purely protection plan (Term Plan), there is no maturity benefit.
Tax Benefit:
Tax Benefits will be as per the Section 80C, 80D & 10(10D) of the Income Tax Act, 1961.
ICICI PRU PURE PROTECT:
Features:
Entry Age Minimum: 18 years
Maximum: 55 years
Maximum Coverage Age 75 years
Policy Term (PT) 10 – 30 years
Premium Minimum: 2400 per annum
Sum Assured (SA) Maximum: 24,99,999 for Classic
51
Minimum: 25 lacs for Elite
Maximum: No Limit
Riders Available In-Built: No
Additional: Accidental Death & Disability
Benefit Rider, Waiver of Premium Rider
Benefits:
Death Benefit:
In case of your unfortunate death during the policy term, nominee will receive the full Sum
Assured.
Maturity Benefit:
As this is a purely protection plan (Term Plan), there is no maturity benefit.
Tax Benefit:
Tax Benefit as per section 80C.
SBI LIFE- SHIELD
Features:
Entry Age Minimum: 18 years
Maximum: 60 years
Maximum Coverage Age 65 years
Policy Term (PT) 5 – 25 years
52
Sum Assured (SA) Minimum: 3 lakh
Maximum: No Limit
Riders Available In-Built: No
Additional: Accidental Death & Permanent
Disability Benefit Rider, Premium Waiver
Benefit Rider
Benefits:
Death Benefit:
In case of your unfortunate death during the policy term, nominee will receive the full Sum
Assured.
Maturity Benefit:
As this is a purely protection plan (Term Plan), there is no maturity benefit.
Tax Benefit:
Tax Benefit as per Section 80C & 10(10D).
CHAPTER 453
SWOT ANALYSIS
SWOT Analysis of Bharti AXA Life Insurance:
Strengths Weaknesses
54
Excellent services
Brand image of Bharti
Customization of product
as per customer needs
Business Experience
Strong financial base
Innovative product technol-
ogy, organizational culture
and environment
Flexible working hours for
the employees
Loads of competitors in the mar-
ket
Offer product difference in pre-
mium and offerings
Higher premium as compared to
other companies
Large sales development
Opportunities Threats
Uncapping of huge insurance
market
Setting up a bank and collabo-
rating it with the insurance
Targeting the pension field as
old people want good life
Attract customers by customiz-
ing children plans as they get
sold like hot cakes.
Weak perception of private play-
ers in the Indian minds due to fi-
nancial scams
Large number of insurance play-
ers
Changing of rules day by day
makes it difficult for the company
Current government policies do not discourage gross domestic savings.
55
CHAPTER 5
METHODOLOGY
OBJECTIVE OF THE STUDY
The main objectives of this study are:-
56
1. To do comparative analysis of the plans of Bharti AXA Life Insurance Company Ltd. with its competitors.
2. To compare the features offered in various plans.
3. To compare the various charges levied in the plans.
4. To find out a plan that best secures the child‘s future.
5. To find out one best retirement solution and protection plan that protects your life in cheapest cost.
In an increasingly competitive environment, where insurance companies fight for the same
customers, the companies need to keep the plans as competitive as possible and for that
companies need to keep the charges as low as possible. With this comparative analysis of
different plans charges, benefits and features, we will be able to find out where company is good
as compared to other players in the market and where company can improve.
It will also help the company, customers and other persons involved with the company as they
can compare the plans and find out the details as per the requirement.
METHODOLOGY
57
RESEARCH APPROACHES
Two types of approaches are used during this study:
1. Analytical
2. Descriptive
DATA COLLECTION METHODS
To conduct the Business research, the data is collected by Secondary Data. Secondary data is
one which already exists and is collected from the published sources.
POPULATION:
The following three Insurance companies made the population of this study:
Bharti AXA Life Insurance Co. Ltd
ICICI Prudential Life Insurance Co Ltd
SBI Life Insurance Co Ltd
SAMPLE:
Child Plan, Pension Plan and Term Plan were taken for comparison as samples.
COMPARISON TECHNIQUE
The plans of selected companies were compared based on three important factors:
• Plan features
• Allocation charge
• Policy Administration charges.
58
Each feature fetches 1 point.
Points Regarding Allocation charges & Policy Administration charges were as follows:
• Least Allocation Charges & Policy Admin. Charges fetched 15 points each.
• Next least Allocation Charges & Policy Admin. Charges fetched 10 points each.
• Highest Allocation Charges & Policy Admin. Charges fetched 5 points each.
Then all the points regarding features, allocation charges and policy administration charges were
added to find out the total points collected by the plans of each company.
The plan having highest points is rated 1 and so on.
The Term plan is compared on other basis because there are no allocation charges and no policy
administration charges.
The annual premium is calculated for different age people opting for the same policy term and
same sum assured.
The company offering least annual premium in an age group for the same policy term and same
sum assured is rated 1 and so on.
59
CHAPTER 6.
DATA ANALYIS AND IN-
TERPRETATION
60
DATA ANALYSIS
COMPARISON OF CHILD PLANS
Product Features Bharti AXA Life Bright Star Plus
ICICI PRU Smart Kid New ULRP
SBI Life- Unit Plus
Child Plan
Cover on parent Yes Yes Yes
Cover On Child No No No
WOP Yes Yes Yes
IB Rider Yes Yes No
ADB Rider Yes Yes Yes
CHB Rider Yes Yes Yes
Increase/Decrease Premium
Yes No Yes
Increase/Decrease S.A Yes Yes Yes
Top-up premium Yes Yes Yes
Partial Withdrawal Yes Yes Yes
Cover continuance op-
tion
Yes Yes Yes
Premium Re-direction Yes No Yes
Switches Yes Yes Yes
Systematic Transfer Yes Yes No
61
plan
Automatic Asset Allocation
Yes No No
Settlement option Yes Yes Yes
Loyalty Addition Yes No Yes
Free Look Period Yes Yes Yes
Total Points 17 13 14
Comparison of Charges
The charges are compared with the help of examples. Consider
Policy Term: 15 Years
Premium Payment Term: 15 Years
Annual Premium: 15,000/20,000/50,000
Allocation Charges
Year APE: 15,000 APE: 20,000 APE: 50,000
Bharti AXA Life Bright Star Plus
ICICI
PRU
Smart
Kid
ULRP
SBI
Life- Unit Plus
Child
Plan
Bharti AXA Life
Bright Star Plus
ICICI
PRU
Smart
Kid
ULRP
SBI
Life- Unit Plus
Child
Plan
Bharti AXA Life
Bright Star Plus
ICICI
PRU
Smart
Kid
ULRP
SBI
Life- Unit Plus
Child
Plan
1 5150 3000 2700 6000 3800 3600 16,000 900 9000
62
2 2250 750 750 3000 1000 1000 7500 250 2500
3 750 750 750 1000 1000 1000 2500 250 2500
4 0 750 300 0 1000 400 0 250 1000
5 0 750 300 0 1000 400 0 250 1000
6 0 300 300 0 400 400 0 100 1000
7 0 300 300 0 400 400 0 100 1000
8 0 300 150 0 400 200 0 100 500
9 0 300 150 0 400 200 0 100 500
10 0 300 150 0 400 200 0 100 500
11 0 150 150 0 200 200 0 500 500
12 0 150 150 0 200 200 0 500 500
13 0 150 150 0 200 200 0 500 500
14 0 150 150 0 200 200 0 500 500
15 0 150 150 0 200 200 0 500 500
Total
charges
8150 8250 6600 10,000 10,800 8800 26,000 26,500 22,000
From the above table, It can infer that in every case the allocation charges are least in SBI Life
Unit Plus Child Plan and highest in ICICI PRU SmartKid Unit Linked Regular Premium.
Hence rating According to Allocation charges are:
63
1. SBI Life Unit Plus Child Plan : 15
2. Bharti AXA Life Bright Star Plus : 10
3. ICICI PRU SmartKid Unit Linked Regular Premium : 05
Policy Administration Charges:
Year Bharti AXA Life
Bright Star Plus
ICICI PRU SmartKid ULRP
SBI Life- Unit Plus Child Plan
1 660 720 750
2 693 720 765
3 728 720 780
4 765 720 795
5 803 720 811
6 843 720 828
7 885 720 844
8 929 720 861
9 976 720 878
10 1024 720 896
11 1075 720 914
12 1129 720 932
13 1186 720 951
64
14 1245 720 970
15 1307 720 990
Total 14,248 10,800 12,965
From the above table, it can infer that Policy Administration charges are least in ICICI PRU Life
SmartKid Unit Linked Regular Premium and highest in Bharti AXA Bright Star Plus.
Hence rating according to the Policy administration charges are:
1. ICICI PRU Life SmartKid Unit Linked Regular Premium: 15
2. SBI Life Unit Plus Child Plan : 10
3. Bharti AXA Life Bright Star Plus : 05
Total Points Collected:
Company Features Allocation
Charges
Policy Admin.
Charges
Total Points
BHARTI AXA LIFE
17 10 05 32
ICICI PRU LIFE 13 05 15 33
SBI LIFE 14 15 10 39
65
Interpretation:
From the above Column chart, it is clear that Bharti AXA Life Bright Star Plus has got the least
points; ICICI PRU Life SmartKid Unit Linked Regular Premium got the second highest points.
Hence SBI Life Unit Plus Child Plan is the best plan among these three life Insurer.
COMPARISON OF PENSION PLANS
66
Product Features Bharti AXA Life Dream Life Pension Plus
ICICI PRU Life
Time Super Pension
SBI Life- Unit Plus
II Pension
Option of Life Cover No Yes Yes
WOP No Yes No
ADDB Rider No Yes Yes
Critical Illness Rider No No Yes
Increase RP No No Yes
Additional RP Yes No No
Indexation Yes No No
Top-up premium Yes Yes Yes
Partial Withdrawal Yes No No
Cover continuance option
Yes Yes Yes
Premium Re-
direction
Yes No Yes
Switches Yes Yes Yes
Systematic Transfer plan
No No No
Automatic Transfer
Strategy
No Yes No
67
Change of Maturity
Date
Yes Yes No
Free Look Period Yes Yes Yes
Open Market Option Yes Yes Yes
Single Premium Yes No Yes
Total Points 11 10 11
Comparison of Charges:
The charges are compared with the help of examples:
Consider
Policy Term: 15 Years
Premium Payment Term: 15 Years
Annual Premium: 15,000/20,000/50,000
Allocation Charges
Year APE: 25,000 APE: 50,000 APE: 1,00,000
Bharti AXA Life Dream
Life
Pension
Plus
ICICI
PRU
Life
time
Super
Pension
SBI
Life-
Unit
Plus II
Pension
Bharti AXA Life Dream
Life
Pen-
sion
Plus
ICICI
PRU
Life
time Su-
per Pen-
sion
SBI
Life-
Unit
Plus II
Pension
Bharti AXA Life Dream
Life
Pension
Plus
ICICI
PRU
Life
time
Super
Pension
SBI
Life-
Unit
Plus II
Pension
68
1 4750 4250 3750 9500 7000 7500 19000 14000 13500
2 2250 2250 1875 4500 4500 3750 9000 9000 5000
3 2250 250 1875 4500 500 3750 9000 1000 5000
4 2250 250 1250 4500 500 2500 9000 1000 5000
5 0 250 1250 0 500 2500 0 1000 5000
6 0 250 500 0 500 1000 0 1000 2000
7 0 250 500 0 500 1000 0 1000 2000
8 0 250 500 0 500 1000 0 1000 2000
9 0 250 500 0 500 1000 0 1000 2000
10 0 250 500 0 500 1000 0 1000 2000
11 0 0 0 0 0 0 0 0 0
12 0 0 0 0 0 0 0 0 0
13 0 0 0 0 0 0 0 0 0
14 0 0 0 0 0 0 0 0 0
15 0 0 0 0 0 0 0 0 0
Total
charges
11,500 8,500 12,500 23,000 15,500 25,000 46,000 31,000 47,500
From the above table, it can infer that in every case the allocation charges are least in ICICI Pru-
69
dential Life Time Super pension and highest in SBI Life Unit Plus II Pension.
Hence rating According to Allocation charges are:
1. ICICI Prudential Life Time Super pension 15
2. Bharti AXA Life Dream Life Pension Plus 10
3. SBI Life Unit Plus II Pension 05
Policy Administration Charges:
Year Bharti AXA Life
Dream Life Pension
Plus
ICICI PRU Life time Super Pension
SBI Life- Unit Plus
II Pension
1 612 480 765
2 643 480 781
3 675 480 796
4 709 480 812
5 744 480 829
6 782 480 845
7 821 480 862
8 862 480 879
9 905 480 897
10 950 480 915
11 998 480 933
70
12 1047 480 952
13 1100 480 971
14 1155 480 990
15 1213 480 1010
Total 13,216 7,200 13,237
From the above table, it can infer that Policy Administration charges are least in ICICI PRU Life
Time Super Pension and highest in SBI Life- Unit Plus II Pension.
Hence rating according to the Policy administration charges are:
1. ICICI PRU Life Time Super Pension 15
2. Bharti AXA Dream Life Pension Plus 10
3. SBI Life- Unit Plus II Pension 05
Total Points CollectedCompany Allocation
Charges
Policy Admin. Charges
Features Total Points
Bharti AXA LIFE 10 10 11 31
ICICI PRU LIFE 15 15 10 40
SBI LIFE 05 05 11 21
71
Interpretation :
From the above column chart, it is clear that ICICI PRU LIFE has got the maximum points &
SBI LIFE has got the minimum points. Hence ICICI PRU Life Time Super Pension is the best
retirement solution among the 3 Insurer.
72
COMPARISON OF TERM PLAN
Term plan can be compared on the basis of premium payable for level covered. Table below
shows the sample of premium payable for Policy Term of 10 years & Sum Assure of 15 lakh for
different companies:
Premium payable for PT=10 Years & SA=1500000 Lakh
Age Bharti AXA Life Secure Confident
ICICI Pru Pure
Protection
SBI Life- Shield
30 2580 2920 2988
35 3080 3771 3753
40 3960 5373 5237
73
Interpretation:
From the above data it is clear that Bharti AXA Life Secure Confident provide you the basic
cover level for your life charging the minimum cost among the 3 life Insurer.
74
CHAPTER 7.
SUMMARY OF FINDING,SUGGESTION
AND CONCULIONS
75
FINDINGS
The findings from the above study are as follows:
1. Allocation charges of Bharti AXA Life Bright Star Plus Plan are higher than SBI Life- Unit Plus
Child Plan.
2. Policy Administration Charges in Bharti AXA Life Bright Star Plus are very much higher than
other two insurers.
3. There is no option of life cover in Bharti AXA Life Dream Life Pension Plus whereas ICICI Pru
Life and SBI Life provide the option of life cover in their respective retirement plan.
76
4. Bharti AXA Dream Life Pension Plus does not have any rider, whereas ICICI Pru Life and SBI
Life provide two Riders in their respective plan.
5. Bharti AXA Dream Life Pension Plus has the option of Additional Regular Premium and
Indexation, which the other two insurers do not provide.
6. Allocation charges and Policy Administration charges in Bharti AXA Life Dream Life Pension
Plus are higher than ICICI Pru Life Time Super Pension but lower than SBI Life Unit Plus-II
Pension Plan.
7. Annual Premium in Bharti AXA Life Secure Confident is lower than the other two insurers.
8. LIC is more popular among people than any other private insurance company.
9. Bharti AXA Life Insurance is new in market therefore not much recognized in market among
people but due to brand image of Bharti it will soon capture a good market share.
RECOMMENDATIONS
Based upon the above findings, the following recommendations were made:
1. Company should reduce the charges in order to make the products more competitive.
2. Company must reduce the policy administration charges levied in Bharti AXA Life Dream
Life Pension Plus.
3. Company should provide the option of life cover & Rider in Pension Plan as done by the
other 2 Life Insurers.
77
4. The company should spend on the promotional activities like advertisement in television,
newspapers to create more awareness of the product as they have more recall value.
5. Company needs greater awareness of its product among target audience.
6. Company should use the name of Airtel to create more awareness among people.
7. Company should open more branches in rural area also so as it can target more people and
also promote its products.
CONCLUSION
After comparative analysis of the plans of these three companies, it is concluded that charges are
varying significantly between companies. Policy Administration Charges by Bharti AXA Life
Insurance and SBI Life Insurance Companies are more than charges levied by ICICI Prudential
Life Insurance Company.
78
Hence among Pension Plans, ICICI Prudential Life Time Super Pension Plan is the best plan
among these three life insurers. Whereas for Child Plan, SBI Life- Unit Plus Child Plan is the
best plan among these three companies. Bharti AXA Life Insurance Provides the cheapest term
among these three life insurers.
REFERENCES
http://www.bharti-axalife.com/products/default.asp
http://www.bharti-axalife.com/about/default.asp
http://connect.in.com/bharti-axa-life-insurance-company-ltd/profile-517249.html
http://www.irdaindia.org/
79
http://www.investopedia.com/dictionary/default.asp
http://www.bharti-axalife.com/public_disclosures.asp
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81