This document is a project report submitted by Archana Kumar for an internship at SBI Life Insurance Company. It includes an acknowledgements section thanking those who helped with the project. It also includes a student declaration signed by Archana Kumar confirming this is her original work. The report contains an index outlining the various sections to be included such as objectives, company profile, types of policies offered, and conclusions. It appears to be analyzing customer investment preferences and awareness of SBI Life Insurance services.

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A
PROJECT REPORT
SBI LIFE INSURANCE COMPANY
SUBMITTED TO
Dr. Pradip Kumar Das
SIKKIM UNIVERSITY
DEPARTMENT OF MANAGEMENT AND COMMERCE
SUBMITTED BY
ARCHANA KUMAR
11UBA003
(BATCH-2011-2014)
BBA-MBA
SIKKIM UNIVERSITY
6TH MILE, TADONG, GANGTOK
SIKKIM-737102

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ACKNOWLEDGEMENTS
This is a matter of great pleasure as well as great privilege and pride for me to present
this project report. This project became possible only due to full cooperation and
sincerity provided by the Company and Institute as well. I am indebted and thankful to
the management of SBI LIFE INSURANCE for providing me an opportunity to work
in this esteemed and flourishing organization.
Research Report is a combined effort including this one also, so I would like to thank to
all who have helped me completion of this report purposeful.
Further I would like to thanks to all of my Teachers, Staff Members, Library Members,
and Friends for their valuable support and advices which helps me a lot to completing
this survey purposeful.

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STUDENT DECLARATION
To,
The Principal,
Sikkim University
Tadong
Gangtok
Respected Sir,
I, ARCHANA KUMARI the student of BBA 3rd semester, hereby declare that
the project report entitled “Internship program on SBI Life Insurance”
developed and submitted under the guidance of Prof. Dr. Pradip kumar Das
This is my Original work.
The project presented here is my own work and has not been duplicated from
any other source.
Thanking You
Yours Sincerely
ARCHANA KUMARI

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Index
1. EXECUTIVE SUMMARY
2. OBJECTIVES
3. INTRODUCTION OF INSUARANCE
4. COMPANY PROFILE
5. KINDS OF LIFE INSURANCE POLICIES
6. CONVENTIONAL LIFE INSURANCE
7. COMPANY PROFILE
8. INSURANCE INDUSTRY IN INDIA
9. PURPOSEAND NEED FOR INSURANCE
10. INDIAN SCENARIO
11. TURNOVER OF THE COMPANY
12. PERSONAL EXPRIENCES
13. RESEARCH METHODOLOGY
14. CONCLUSION
15. RECOMMENDATIONS
16. BIBLIOGRAPHY

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EXECUTIVE SUMMARY
The purpose of this training was to have practical experience of working an organization in
the field of marketing and to have an exposure to various management practices in the field
of marketing.
Development of channel is very important for any company to boost it’s business.
Development of channel includes creating a network of financial consultants for facilitating
the increase in sales of the company.
I have done the work for 10 weeks in SBI Life Insurance Company.
I worked in SBI life insurance in muzaffarpur at Patna circle.
.
The main purpose of the project was basically to develop the channel of SBI Life Insurance
Company.

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PROJECTTITLE
“A Study on the Customers Investment Preferences and Awareness of SBI LIFE
Insurance Service”
OBJECTIVES
1. To understand the customer investment preferences.
2. To get an instant overview of the insurance industry, its perspective, present
Scenarios and the competitors.
3. To study the factors influencing customer preferences towards various investment
Instruments
4. To analyses acceptance of SBI LIFE insurance policies.

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INTRODUCTION
HISTORY
Insurance has been known to exist in some form or other since 3000 BC. The Chinese traders,
travelling treacherous river rapid would distribute their goods among several vessels, so that
the loss from any one vessel being lost, would be partial and shared, and not total. The
Babylonian traders would agree to pay additional sums to lenders, as the price for writing off
the loans, in case of the shipment being stolen. The inhabitants of Rhodes adopted the
principle of ‘general average’, whereby if goods are shipped together, the owners would bear
the losses in proportion, if loss occurs, due to jettisoning during distress. (Capital of ships
caught in storms, would throw away some of the cargo to reduce the weight and restore
balance. Such throwing away is called jettisoning) The Greeks had started benevolent
societies in the late 7th century AD, to take care of the funeral and families of members who
died. The friendly societies of England were similarly constituted. The Great Fire of London
in 1666, in which more than 13000 houses were lost, gave a boost to insurance and the first
insurance company, called the Fire Office, was started in 1680.
The origin of insurance business as in vogue at present, in traced to the Lloyd’s Coffee House
in London. Traders, who used to gather in the Lloyd’s coffee house in London, agreed to
share the losses to their goods while being carried by ships. The losses used to occur because
of pirates who robbed on the high seas or because of occurs because of pirates who robbed on
the high seas or because of bad weather spoiling the goods or sinking the ship. In India,
insurance began in 1818 with life insurance being transacted by an English company, the
oriented Life Insurance Co. Ltd.... The first Indian Insurance company was the Bombay
Mutual Assurance Society Ltd, former in 1870 in Mumbai. This was followed by the Bharat
Insurance Co. in 1896 in Delhi the empire of India in 1897 in Mumbai, the United India in
Chennai, the National Indian and the Hindustan Cooperative in Kolkata.
Later , were established the Cooperative Assurance in Lahore, the Bombay Life (originally
called the Swadeshi Life), the Indian Mercantile, the New India and the Jupiter in Mumbai
and the Lakshmi in New Delhi. These were all Indian companies started as a result of the
swadeshi movement in the early 1900s. By the year 1956, when the life insurance business
was nationalized and the Life Insurance Corporation of India (LIC) was formed on 1st
September 1956, there were 170 companies and 75 provident fund societies transacting life
insurance business in India. After the amendments to the relevant laws in 1999, the L.I.C. did

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not have the exclusive privilege of doing life insurance business in India. By 31.8.2007,
sixteen new lives insure had been registered and were transacting life insurance business in
India.

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SBI Life Insurance
India
SBI Life Insurance Company Limited is a joint venture company formed between the State Bank of
India and BNP Paribas Assurance. State Bank of India owns 74% and BNP Paribas Assurance holds the
remaining 26% of the stake of the joint venture as per the guidelines of the Indian government. State
Bank is the largest banking franchise in India and is beyond competition. Along with its seven associate
banks, SBI has the strength of over 14,500 branches across the country and the largest in the world.
Their presence is felt in the remotest parts of the country. BNP Paribas Assurance is the insurance arm
of BNP Paribas. It is one of the world's top 10 banks by the market value and one of Europe's top 3
banking companies. In fact it is one of the oldest foreign banks with its presence in India since 1860.
SBI Life is registered with a capital of Rs.2000 crore and a paid-up capital base of Rs.1000 corers.
SBI caters to over 100 million accounts across the country. It offers a great base for insurance
penetration across every region and economic strata in the country ensuring true financial inclusion. SBI
Life also follows the unique multi-distribution business model encompassing Bancassurance, Agency
and Group Corporate for its business. SBI Life is strongly supported by its skilled staff and sales force
allocated across the country. SBI Life comprise of the most productive force of more than 63,000
Insurance Advisors, offering door to door insurance solutions to customers. SBI Life uses SBI Group as
a platform for cross-selling insurance products to its already existing large customer base along with its
various banking product packages such as housing and personal loans. The company offers
comprehensive range of Life Insurance and pension products designed to meet the requirements of the
customers at competitive prices. It aims to provide high standard customer service and world class
insurance product.

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TYPES OF SBI LIFE INSURANCE
Unit Linked Plans
 SBI Life - Smart Performer
 SBI Life - Unit Plus Super
 SBI Life - Saral Maha Anand
 SBI Life - Smart Elite
 SBI Life - Smart Scholar
Saving Plans
 SBI Life - Money Back
 SBI Life - Sanjeevan Supreme
 SBI Life - Shubh Nivesh
 SBI Life - Saral Life
Pension Plans
 SBI Life - Lifelong Pension Plan
Child Plans
 SBI Life - Scholar II
 SBI Life - Smart Scholar
Protection Plans
 SBI Life - Smart shield
 SBI Life - Saral shield
 SBI Life – Swadhan

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Life Insurance
 Life Insurance is a financial cover for a contingency linked with human life like death,
disability accident retirement etc. Human life is subject to risks of death and disability due to
natural and accidental causes. When human life is lost or a person is disabled permanently or
temporarily, there is loss of income to the household.
 Though human life cannot be valued, a monetary sum could be determined based on the loss
of income in future years. Hence, in life insurance the Sum Assured (or the amount
guaranteed to be paid in the event of a loss) is by way of a ‘benefit’. Life Insurance products
provide a definite amount of money in case the life insured dies during the insured dies
during the term of the policy or becomes disabled on account of an accident.
 Why you should buy Life Insurance:
All of us face the following risks:
Dying too soon
Living too long
Life insurance is needed:
To ensure that you’re immediate family has some financial support in the event of your
demise.
To finance your children’s education and other needs.
To have a savings plan for the future so that you have a constant source of income when your
earning are reduced due to serious illness or accident.
To provide for other financial contingencies and life style requirement.
 Who needs Life Insurance
Primarily, anyone who has a family to support and is an income earner needs Life Insurance.
In view of the economic value of their contribution to the family, housewives too need life
insurance cover.
Even children can be considered for life insurance in view of their future income potential
being at risk.
 How much Life Insurance is needed:
The amount of Life Insurance coverage you need will depend on many factors such as:

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How many dependants you have
Whether you have any debts or mortgages
What kind of lifestyle you want to provide for your family
How much you need for your children’s education
What your investment needs are
What your affordability is
You should seek the help of an insurance agent or broker to understand your insurance needs
and suggest the right type of cover.
 Kind of Life Insurance Policies:
Term Insurance
You can choose to have protection for a set period of time with Term Insurance, you are
guaranteed lifelong protection. Whole life insurance pays out a death benifit so you can be
assured that your family is protected against financial loss that can happen after your death. It
is also an ideal way of creating an estate for your heirs as an inheritance.
Whole Life Insurance
With whole life insurance, you are guaranteed lifelong protection. Whole life insurance pays
out a death benefit so you can be assured that your family is protected against financial loss
that can happen after your death. It is also an ideal way of creating an estate for your heirs as
an inheritance.
Endowment Policy
An Endowment policy is a saving linked insurance policy with a specific maturity date.
Should an unfortunate event by way of death or disability occur to you during the period, the
Sum Assured will be paid to your beneficiaries? On your surviving the term, the maturity
proceeds on the policy become payable.

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Money back plans or cash back plans:
Under this plan, certain percentage of the sum assured is returned to the insured person
periodically as survival benefit. On the expiry of the term, the balance amount is paid as
maturity value. The life risk may be covered for the full sum assured during the term of the
policy irrespective of the survival benefits paid.
Children policies
These types of policies are taken on the life of the parent/children for the benefit of the child.
By such policy the parents can plan to get funds when the child attains various stages in life.
Some insurers offer wavier of premiums in case of case of unfortunate death of the
parent/proposer during the term of the policy.
Annuity (pension) plans
When an employee retires he no longer gets his salary while his need for a regular income
continues. Retirement benefits like Provident Funds and gratuity are paid in lump sum which
are often spent too quickly or not invested prudently with the result that the employee finds
himself without regular income in his post-retirement days. Pension is therefore an ideal
method of retirement provision because the benifit is in the form of regular income. It is wise
to provide for old age, when we have regular income during our earning period to take care of
rainy days. Financial independence during old age is a must for everybody.
There are two types of annuities (pension plan)
Immediate annuity
In case of immediate Annuity, the Annuity payment from the Insurance Company starts
immediately. Purchase price (premium) for immediate Annuity is to be paid in iumpsum in
one installment only.
Deferred Annuity
Under deferred Annuity policy, the person pays regular contributions to the insurance
company, till the vesting age/vesting date. He has the option to pay as single premium also.
The fund will accumulate with interest and fund will be available on the vesting date. The
insurance company will take care of the investment of funds and the policyholder has the

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option to encase 1/3rd of this corpus fund on the vesting age/vesting date tax free. The balance
amount of 2/3rd of the fund will be utilized for purchase of Annuity (pension) to the
Annuitant.
Unit Linked Insurance Policy
Unit Linked Insurance Policy (ULIPs) offer a combination of investment and protection and
allow you the flexibility and choice on how your premiums are invested. IN UNIT LINKED
PLANS, THE INVESTMENT RISK PORTFOLIO IS BORNE BY YOU AS YOU ARE
THE INVESTOR.
Typically, the policy will provide you with a choice of funds in which you may invest. You
also have the flexibility to switch between different funds during the life of the policy. The
value of a ULIP is linked to the prevailing value of units you have invested in the fund, which
in turn depends on the fund’s performance. In the event of death or permanent disability, the
policy will provide the Sum Assured (to the extent you are covered) so that you can take
comfort in knowing that your family is protected from sudden financial loss. A ULIP has
varying degree of risk and rewards. There are various charges applicable for Unit Linked
Policies and the balance amount out of the premium is only invested in the fund/funds chosen
by you. It is important to assess your risk appetite and invested horizon before deciding to
buy a ULIP policy. You must also read the terms and conditions of the policy including the
lock-in period, surrender value surrender charges etc.
All the type of plans mentioned above can be offered under ULIP plans.

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CONVENTIONAL LIFE INSURANCE
Q} What should I look for before I decide to buy a policy?
A} You must check and see whether or not there is availability of guarantee of return, what
the lock in period is, detail of premium default, what the revival conditions are what the lock
in period is, details of premium default, what the revival conditions are what the policy terms
are what are the charges that would be deducted, would be available etc.
Q} What is the important of proposal for and the disclosers made therein?
A} The disclosers made in a proposal are the basis for underwriting a policy and therefore
any wrong statements or disclosures can lead to denial of a claim.
Q} What are special medical report required to be submitted in Life insurance?
A} In case of certain proposals, depending upon the age of entry, at maturity, sum assured,
family history and personal history, special medical reports may be necessary for
consideration of a risk. E.g. if the proposer is overweight, special reports like Electro
Cardiogram, glucose tolerance test etc could be required, while for underweight proposers X-
ray of the chest and lungs with report could be required.
Q} What is meant by paid-up value in Conventional Life Insurance Policy?
A} After premium are paid for a certain defined period or beyond and if subsequent premium
are not paid, the sum assured is reduced to a proportionate sum, which bears the same ratio to
the full sum assured as the number of premiums actually paid bears to the total number
originally stipulated in the policy. For example, if sum assured is 1lakh and the total number
of premiums is payable is 20 (20years policy, mode of premiums is assumed yearly) and
default occurs after 10years premium are paid the policy acquires the paid up value of
50,000. Paid up value = No. of Premiums paid/ No. Of premium payable X S.A= 10/20X
100000 = 50000. This means that the policy is effective as before except that from the date
the 11th premium was due the sum assured is 50000 instead of 100000. To this sum assured
the bonus already vested before the policy lapsed, is also added. Example if the bonus
accrued up to the date of lapse is 35000 the total paid up value is 50000+35000 = 85000.
Q} How is Surrender Value calculated in Conventional Life Insurance Policy?

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A} Surrender Value is allowed as a percentage of this paid up value. Surrender value is
calculated as per the surrender value factor, which depends on the premium paid and elapsed
duration.
Q} How is the loan on policy calculated under Conventional Life Insurance Policies?
A} If the policy condition permits grant of loan, loan is sanctioned as a percentage of the
Surrender Value.
Q} What are the requirement to be submitted in case of a Maturity Claim?
A} Usually the Insurance Company will send intimation attaching the discharge voucher to
the policy holder at least 2 to 3 months in advance of the date of maturity of the policy
intimating the claim amount payable. The policy bond and the discharge voucher duly signed
and witnessed are to be returned to the insurance company will be able to make payment. If
the policy is assigned will be paid only to the assignee that will give the discharge.
Q} What is meant by settlement options?
A} Settlement option means the facility made available to the policy holder to receive the
maturity proceeds in a defined manner (the terms and condition are specified in advance at
the inception of the contract).
Q} What documents are generally required to be submitted in case of death of life assured
while the policy is in force?
A} The basic document that are generally required are death certificate, claim form and
policy bond, other document such as medical attendant’s certificate, hospital certificate ,
employer’s certificate, hospital certificate, employer’s certificate, police inquest, post mortem
report etc could be called for, as applicable. The claim requirement are usually disclosed in
the policy bond.
Q} How is Surrender value calculated in Unit Linked Policies?
A} Surrender value is usually expressed as fund value less the surrender charge.
Q} What is the method of arriving at NAV for surrenders, maturity claim, switch etc?

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A} In respect of valid application received up to 3.00 by the insurer, the insurer, the same
day’s closing NAV is applicable.
In respect of valid applications received after 3.00 p.m. by the insurer, the closing NAV of
the next business day is applicable.
Q} What is a Unit Fund?
A} The allocated portions of the premiums after deducting for all the charges and under all
policies in a particular fund as chosen by the policy holder are pooled together to form Unit
Fund.
Q} What is a Unit?
A} It is a component of the Fund in a Unit Linked Policy.
Q} What type of funds do ULIP offer?
A} Most insure offer a wide range of funds to suit one’s investment objectives, risk profile
and time horizons. Different funds have different risk profile. The potential for returns also
varies from fund to fund.
Q} Are Investment Return Guaranteed in a ULIP?
A} Investment return from ULIP may not be guaranteed. “In unit linked products the
investment risk in investment portfolio is borne by the policy holder”. Depending upon the
performance of the unit linked fund chosen; the policy holder may achieve gains or losses on
his/her investments. It should also be noted that the past returns of a fund are not necessarily
indicative of the future performance of the fund.
Q} What are the charges, fees and deductions in a ULIP?
A} ULIPs offered by different insures having varying charge structures. Broadly, the
different types of fees and charges are given below. However it may be noted that insurers
have the right to revise fees and charges over a period of time.
Premium Allocated Charge

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This is a percentage of the premium appropriated towards charge before allocating the units
under the policy. The charge normally includes initial and renewal expenses apart from
commission expenses.
Mortality Charges
These are charges to provide for the cost of insurance coverage under the plan. Mortality
charges depend on number of factors such as age, amount of coverage, state of health etc.
Fund Management Fees
These are fees levied for management of the funds and are deducted before arriving at the Net
Asset Value.
Policy Charges
These are the fees for administration of the plan and levied by cancellation of units. The
could be flat throughout the policy term or vary at a pre-determined rate.
Surrender Charge
A surrender charge may be deducted for premature partial or full encashment of units
wherever applicable, as mentioned in the policy conditions.
Fund Switching Charge
Generally a limited number of funds switches may be allowed each year without charge, with
subsequent switches, subject to a charge.
Service Tax Deduction
Before allotment of the unit the applicable service tax is deducted from the risk portion of the
premium.
Q} What should one verify before signing the proposal?
A} One has to verify the approved sales brochure for
 All the charges deductible under the policy
 Payment on premature surrender
 Feature and benefits

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 Limitation and exclusion
 Lapsation and its consequences
 Other disclosures
 Illustration projecting benefits payable in two scenarios of 6% and 10% returns as
prescribed by the life insurance council.
Q} How much of the premium is used to purchase units?
A} The full amount of premium paid is not allocated to purchase units. Insures allot units on
the portion of the premium remaining after providing for various charges, fees and
deductions. However the quantum of premium used to purchase units varies from product to
product.
The total monetary value of the units allocated is invariable less than the amount of premium
paid because the charges are first deducted from the premium collected and the remaining
amount is used allocating units.
Q} Can one seek refund of premiums if not satisfied with the policy, after purchasing it?
A} The policyholder can seek refund of premiums if he disagrees with the terms and
conditions of the policy, within 15 days of receipt of the policy documents. The policyholder
shall be refunded the fund value including charges levied through cancellation of units
subject to deduction of expenses towards medical examination, stamp duty and proportionate
risk premium for the period of cover.
Q} What is Net Assets Value?
A} NAV is the value of each unit of the fund on a given day. The NAV of each fund is
displayed on the website of the respective insurers.
Q} What is the benefits payable in the event of risk occurring during the term of the policy?
A} The Sum Assured and value of the fund units is normally payable to the beneficiaries in
the event of risk to the life assured during the term as per the policy condition.
Q} What is the benefit payable on the maturity of the policy?
A} The value of fund units with bonuses, if any is payable on maturity of the policy.

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Q} Is it possible to invest additional contribution above the regular premium?
A} Yes, one can invest additional contribution over and the regular premium as per their
choice subject to the feature being available in the product. This facility is known as “TOP
UP” facility.
Q} Can one switch the investment fund after taking a ULIP policy?
A} Yes, “SWITCH” option provide for shifting the investments in a policy from one fund to
another provided the features is available in the product. While a specified number of
switching are generally effected free of cost, a fee is charged for switches made beyond the
specified number.

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COMPANY PROFILE
About the Company:
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardiff.
SBI owns 74% of the total capital and BNP Paribas Cardiff the remaining 26%. SBI Life
Insurance has an authorized capital of Rs. 2000 cr. and a paid up capital of Rs. 1000 cr. State
Bank of India enjoys the largest banking franchise in India.
Along with its 5 associate banks group has the unrivalled strength of over 20000 branches
across the country, arguably the largest in the world. BNP Paribas, one of the leading banks
in Europe, ranks 5th in the banking industry worldwide. It is the 6th most valuable
international banking brand as per Brand Finance 2008. BNP Paribas Cardiff is the insurance
arm of BNP Paribas- Euro Zone’s leading Bank. It is one of the leading life insurers in
France, and a worldwide leader in Creditor insurance products. SBI Life’s mission is to
emerge as the leading company offering a comprehensive range of life insurance and pension
products at comprehensive range of life insurance and pension products at competitive price,
ensuring high standards of customer service of customer service and world class operating
efficiency.
SBI Life has a unique multi-distribution model encompassing vibrant Banscassurance, Retail
Agency, and Institutional Alliances and Corporate Solutions distribution channels.
SBI Life extensive leverage the State Bank Group relationship as a platform for cross-selling
insurance product packages such as housing loans and personal loans. SBI’s access to over
100 million accounts across every regions and economic strata in the country, thus financial
inclusion. Agency Channel, comprising the most productive force of over 85000 Insurance
Advisors, offers door to door insurance solution to customers.

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Vision :
"To be the most trusted and preferred life insurance provider "
Mission:
"To emerge as the leading company offering a comprehensive range of life
insurance and pension products at competitive prices, ensuring high standards of
customer satisfaction and world class operating efficiency, and become a model
life insurance company in India in the post liberalization period".
Values :
• Trustworthiness
• Ambition
• Innovation
• Dynamism
• Excellence

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Major benefits
• An infrastructure that can support broad information integration for the enterprise portal,
relational databases, business intelligence, and enterprise content management applications
• Unified portal creation and administration across the enterprise.
• A Web services-based service oriented architecture that delivers Web services and the
ability to unlock existing assets as re-usable Web services.
• Projects that were previously shelved due to high integration costs can now
come off the shelf and show immediate ROI Products and technologies used.
• Onlinesbilife.com is implemented on BEA Web logic Platform 8.1 with Oracle 9.1 as
a backend.
• Tuxedo acts as a middleware to integrate the Web-based application with the Indigo engine.
• The core insurance engine is Indigo; the entire business logic from processing the proposal
to policy issuance and policy servicing resides in Indigo.
• Behaviour tracking of user, group and profile management based on LDAP, RDBMS,
legacy or a combination
• Rules management for segmentation, content selection and entitlement at the Port let or
page level.
• Web flow and pipeline MVC architecture.
• Support for CSS-based skins and multi-channel portals.
• Broadband Internet connectivity to a central server from all over the country.
• Security is addressed with Nortel/Alton switch and Checkpoint network Security software.
• Strategy, architecture, design and implementation was done by SBI Life's IT team.
• E-business infrastructure software was undertaken by BEA Systems.
• Software design and development was done by Satyam.
• Security was handled by Nortel and Check Point

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INSURANCE INDUSTRYIN INDIA
1. ICICI Prudential: Its a joint venture of ICICI bank, one of the biggest bank of India and
Prudential PLC, a financial monster from Britain with 74% and 26% holding respectively.
ICICI Prudential has over 1500 offices nationwide and it holds the total asset of over $13
billion.
2. STATE BANK OF INDIA:
State Bank of India (SBI) is one of the largest Indian banks. On the trailing four quarters it
reported profit of Rs 7,677 crore. The bank has been able to post good bottom line growth
primarily because of improvement seen in its net interest margin (NIM). For the December
quarter of 2012, the bank’s NIM increased by 44 basis points to 4.05 per cent, which is one of
the best in the industry. For the trailing four quarters the bank is facing headwinds in posting
good bottom line mainly because of higher provisioning. It is facing asset quality pressure
which is evident from the fact that for the December quarter of 2011 the net NPA of the bank
increased by 61 basis points to 2.22 per cent on a Yoyo basis while on a sequential basis it
increased by 18 basis points. SBI is currently trading at a book value of around 2x which
should be considered as fairly valued.
Mr. Mahadev Nagendra Rao (MD & CEO)

26. ~ 26 ~
3. Bajaj Allianz: A joint venture between two big companies, Bajaj Group and Allianz AG.
Headquartered in Pune, the company is one of the fastest growing general and life insurance
Company in India with over 1200 branches across India and variety of services in insurance
sector.
4. Tata AIG: Another joint venture from India's monster Tata Group and America's
insurance specialist, AIA (American International Assurance). Started operations in 2001, the
stock holding is 74% and 26% for Tata and AIA respectively. It works in almost every
verticals in its sector.
5. Aviva India: Started its operation in 2002, it’s a joint venture between world's insurance
mosnter Aviva and India's Dabur Group with a stock sharing of 26% and 74% respectevely.
It has over 160 branches in India and employee strength of over 5000. Apart from that, Aviva
has already has associates in over 70 countries.

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6. MetLife India: "Have you met life today?" this signature line is from Metropolitan Life
Insurance Company, commonly known as MetLife. Founded in 1868 in New York, the
company is one of the oldest life insurance company in the world and with a turnover of
around $53 billion, its a market leader in terms of revenue.
7. Max New York Life Insurance: Founded in 2000 and started its operation in 2001, Max
New York Life Insurance is a joint venture between Max India Ltd and New York Life
Enterprise. With over 25 life insurance policies, it has a turnover of around $400 million.
Mr. Rajesh Sud (CEO & Managing Director).
8. ING Vysya Life Insurance: Also known as ING Life, the company is headquartered in
Bangalore. Started its operations in 2001, the company recently has completed a decade in
India. Its a joint venture between Exide Industries and ING Insurance International BV. With
over 1 million customers, it has presence in over 200 cities in India. Mr. Rajan Raheja
(Chairman), Mr. Satish Raheja (Director).

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9. AEGON Religare Life Insurance: Its a joint venture among AEGON - an international
life insurance company, Religare - world's financial service leader and India's financial
service group, Bennett, Coleman and Company. Started its business in 2008, the company
has gain good market share in short span of time.
9. Birla Sun Life: Its a joint venture between Aditya Birla Group and Sun Life Financial
from canada. Established in 2000, the company has experience of over 10 years. It has a
network of over 600 branches across India, covers 1500 cities, around 1350000
life advisers and has revenue of over $500 million. Mr. Jayant Dua (MD & CEO).
11. Bharti AXA Life Insurance: Started in 2006, its a joint venture between Bharti
Enterprise - a leading telecom company in India (Airtel) and AXA Group - an international
market leader in insurance sector. With 74% and 26% market share respectively.
With presence in all over India, the company provides many services in all verticals.

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PURPOSE AND NEED FOR INSURANCE
Functions of Life Insurance: -
a) Protection
The four hazards against which life insurance offers protection are:
 Death
 Disability
 Disease
 Destitution
b) Means of Savings
Life insurance is a sound method of savings. In all other savings, there is always
temptation to withdraw. However, there are in-built provisions under a life insurance
policy (such as paid-up value, surrender value etc.) which discourage the person from
discontinuing a policy. The contracts of life insurance are of long duration, which is an
element of encouragement to thrift and compulsion for saving.
c) Prudent Investment
Returns under a life insurance policy are comparatively lower than other financial
instruments in the market. However, in view of its very sound investment policy and
accumulation of a vast life fund, the ‘Security’ of funds is very high. Further ‘Liquidity’
under life insurance policy is also guaranteed due to provisions of survival benefit, loans,
surrender values etc.

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(d) Tax-saving instrument
Premiums under life insurance and annuity policies secure attractive tax benefits.
These get substantial rebates under Income tax, Wealth tax, Gift Tax etc. The proceeds of
life insurance policy are exempt from Income tax and Wealth tax.
(e) Business Protection
Large numbers of business houses are of proprietary nature. With the untimely death
of proprietor, the business can be wiped out due to debts, un-recovered bills and inability
of heirs to carry on the business. A proper planning with the help of life insurance can
save such business and enhance their “goodwill” value.
(f) Best Collateral
No other financial instrument can compete with life insurance as sound collateral.
By going in for life insurance one creates an instant estate, which can be used as collateral
against housing loans and other business loans.
(g) Relieves Anxiety and Promotes Initiative
This is a hidden but very significant benefit of life insurance plan for an individual. A
man is not prone to take risk for security considerations. But once he is assured of basic
minimum security, he is inclined to take risks and launch any entrepreneurial activity. Life
insurance takes care of one of his biggest worries and thus enables him to embark upon new
initiatives.

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UNDERWRITING
OBJECTIVE
 What is meant by underwriting
 Why is important in insurance
 How it is done in life insurance
 Medical and non-medical underwriting
A proposal is an application for an insurance cover. When a proposal is received, the
insurance will not grant the cover automatically. The insurer will make a decision as to
the admissibility of the proposer to the pool of policyholder. This is because of the
insurer’s role as a trustee. It has to ensure that every new entrant into pool has similar
exposure to the risks as the others. The process of verifying the level of risk in each new
entrant and determining the terms of admission is called “selection” or “underwriting”.
The underwriting process is an important one in any insurance office, life or none is
appropriate. A lower premium affects the solvency of the fund. The cost of the additional
risk, not recovered from the proposer would have to be borne by the rest of the
policyholders. That is not be fair to the proposer, because of the principle of utmost good
faith. “Underwriting” has implications of fairness to the insurer and to policyholders,
individually and collectively.
If the underwriter finds that the individuals proposed to be insured has no adverse
features affecting mortality and other factors relating to insurability, the risk is considered
as a normal or standard or first class life. The premium charged would be as per tabular
rates. Otherwise, the term of acceptances of the proposal would be different.
Financial underwriting
One of the indicators of moral hazards is the size of the insurance proposed compared to
the income. The extent of insurable interest of a person in his own life is unlimited. It is
not limited to his current levels of income because it is assured that this level can go up at
any time. There is nothing that prevents a petrol pump attended becoming the biggest
industrialist of the country or those sleeping on the footpaths becoming rich film stars.
Yet, the premium on the insurance policy has to be paid regularly. If it is being paid from

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current income, then the source of the premium needs to be checked. If someone else is
paying for it, there could be issues of insurable interest and wager. The need for insurance
has to be related to current situations and not to a desirable situation of the future. When
the premium paid is large compared to the income there also possibilities of higher claims
money laundering and fraud. The underwriting has to be satisfied to these counts. Making
a judgment on these financial aspects is called financial underwriting. Thumbs rules like
‘insurance not more than 10 years income’ are guidelines, but may not do justice in all
cases.
NON MEDICAL UNDERWRITING:
Insurance have found that after medical examination, more than 90% proposals are
accepted as proposal at O.R. future, medical examinations from qualified doctors were
not easy in all the places. Even in urban areas, the prospects had to go and wait at the
doctor’s first priority. Therefore, over the years, the LIC had been underwriting proposals
without any medical examination, replying entirely on the personal statements and
declarations made by the proposer.
Other insurance also have followed the practice of doing away with medical
examinations, subject to some restrictions. The restrictions are usually with regard to
limits on (i) age (ii) SA (iii) plan and (iv) nature of employment. In the case of the L.I.C
which has extended these limited to less than 45 years. The SA, limited to less is Rs.1
lakh in most cases.

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Indian Scenario
BI LIFE LEADS GLOBALLY AT MILLION DOLLAR
ROUND TABLE (MDRT) 2011
Mumbai, September 28, 2011 - SBI Life Insurance, the leading private life insurer,
retains the unique distinction of being the only Life Insurer from India, topping the
prestigious Million Dollar Round Table (MDRT) 2011 across the globe. For the third
consecutive year, SBI Life has reached the pinnacle of the international coveted league
by having 2,661 MDRT members in 2011. Amongst these, 200 have achieved Court of
Table (COT) and 30 Top of Table (TOT) membership statuses. SBI Life has been
consistently featuring amongst the top five insurers, worldwide, since last five years.
Globally, the company ranked 5th in 2007, 3rd in 2008,1stin2009,2010and2011.
Reputation, standard of sales excellence and high ethical standards are some of the key
values that are associated with the MDRT brand. The MDRT membership is an exclusive
honour that is achieved by less than 1 percent of the world's life insurance and financial
services advisors. Life Insurance professionals aspire to attain the privilege of being an
MDRT member.
Mr. M. N. Rao, MD & CEO, SBI Life, said, "Across the globe, both, Agent and
Insurance Facilitator at bank, continue to be a reliable source of personal financial advice.
Our accomplishment on a global platform testifies the professional approach followed by
our distributors. We will continue to focus on equipping them with relevant support to
enable advisory-based delivery of life insurance solutions to our customers."

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Mr. Rajiv Gupta, Executive Director, Marketing, and SBI Life added "This
accomplishment resonates our commitment towards creating quality advisors who can be
looked upon as world-class benchmarks. Providing need based solutions, professional
advice and unmatched service will remain the focal delivery points for our Advisors ".
An opportunity to represent one of the most trusted brands in the country, superior
training program and attractive reward and recognition programmes are some of benefits
availed by SBI Life Insurance Advisors.
Uniquely, despite tough external conditions, SBI Life continues to expand its presence.
During the current financial year, the company has introduced 81 branches and recruited
1657 employees.
SBI Life ranks number one amongst private players, as per the latest IRDA report, July
2011. The company has a market share of 21.6% among private life insurers and a total
market share of 6%.
AboutMDRT:
MDRT is an association of the world's best life insurance sales (advisors) professionals.
Founded in 1927, MDRT is an international, independent association of nearly 36,000 of
the world's leading life insurance and financial services professionals from 76 nations and
territories, representing over 450 companies. MDRT members are recognized as skilful
professionals who are considered to be among the best in the industry, perform
outstanding client service, and have achieved the highest standard of sales excellence in
the life insurance and financial services business.

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RESEARCH METHODOLOGY
INTRODUCTION
Research Methodology is way to systematically solve the research problem. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with logic behind them .We also need to understand the assumption underlying various
techniques and procedures will be applicable to certain problems and other will not. So it is
necessary for us to design methodology for the problem as it differs from problem. So
research methodology is not only method research but also logic behind the methods we use
in context of our research study and explain why we are using a particular method or
technique and why we are not using others so that research results are capable of being
evaluated.
 Marketing research is the systematic design, collection, analysis and reporting of data
and findings relevant to specific marketing situation facing the company.
 An effective marketing research involves following five objectives.
 Developing research plan. Steps in a sequential manner.
 Defining the research.
 Collecting the information.
 Analyze the information.
 Present the findings

DEFINNING RESEARCH OBJECTIVE:
Objective is the main theme of in, which is my job, is based. Research is a good planning of
strategy, policy and formulation of procedure to compete in the market. The objective of the
project should be very precise; it should neither be very broad nor be very narrow.

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DEVELOPING RESEARCH PLAN:
The research plan is the main body or you can call the blue print in whichwe carry the
research. The research plans consist of data sources, research approaches, research
instruments, sampling plan and contact methods.
1. DATA SOURCES:
I have gathered secondary data. Secondary data are the data, which already exists and were
collected for some other purpose or for similar previous studies. Primary data are the data
gathered for the specific research project and are directly taken from the very source of
information. For this research secondary data were used for making assumption and the
outline of the project. Secondary data were proved to be instrumental in structuring the
questions to be asked for collecting primary data. The secondary data used here were in the
form of previous reports, sales record of the company and the sales history of the competitor
and this was the information on which the final report is based on.
2. RESEARCH APPROACH:
Primary data can be collected in several different ways these methods of
collecting primary data are called research approaches. Research approaches are of
following types:
a) Observational research
b) Focus group research
c) Survey research
d) Experimental research.
e) Behavioral data research

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FINDINGS
Findings
During my project I have found out various things by which I have learned a lot. As
insurance is one of the toughest sectors in business world and we are the dream sellers in the
industry because we never give the customers return in that very day we are assuring some
amount so its all about faith on we people which customers are suppose to do.
General View
(1) Promotional tools which are being used are not so much effective.
(2) Customers are much more relying upon LIC.
(3) Less customer awareness regarding SBI LIFE Insurance.
(4) It still not penetrates in rural area.
(5) Product variety is very less.
(6) All products are not attractive to the customers so that kind of products are very
hard to sale.
(7) Investment plans are very less, that s why people are not accepting the products.
(8) Competitors are very tough.
(9) Brand name helped quite a lot to the company.
Positive view
1. Brand name helped a lot while financial advisors are opting for calling.
2. Branches are almost everywhere.
3. Higher level of advertising and all are very effective
4. Advertising through all media.
Negative view
1. Customers are much more relying upon LIC.
2. People don’t rely upon private insurance sector.
3. Competitors are very tough.
4. All products are not attractive to the customers so that kind of products are very
hard to sale.
5. Less number of traditional plans that’s why people who really need traditional
plans are still not satisfied.

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CONCLUSION
Truly speaking neither an insurance policy nor any other investment can replace the other.
One must have both for a complete, intelligent and a secure portfolio. Comparing one
investment with other is like comparing oranges with apples. Investments deal with
attempting to capitalize on calculated risk. Working with SBI LIFE INSURANCE was a very
nice and a good learning experience. It has helped me a lot learning about different kinds of
investments and the pros-corns of its. It has also helped me to know about how to works in a
corporate world is done.
RECOMMENDATIONS
Given the current level of dissatisfaction experienced by customers, it is the time for SBI
LIFE Insurance to concentrate on providing high quality services for differentiating their
offerings. Some areas on which they should concentrate immediately are:-
 Gear up sales services particularly those that will help in reducing customer anxieties.
 Simplify documents wherever necessary, without loosing control.
 Enhance post sales services in such areas as sending all renewal notices in time,
expeditious settlement of claims and refunds etc. Customize products to cater to the
needs of each individual.
 Emphasize with the customers. Employees coming in contact with customers must
show courtesy and good behavior.
 To deliver the above, will need to build the suitable organization with an appropriate
management system, optimum physical infrastructure and a culture of innovation,
productivity and customer-orientation that will enable them to survive and grow in
exciting and fast growing line of personal insurance.

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BIBLIOGRAPHY
Web Site : http://www.sbilife.co.in/sbilife/content/83425
http://www.moneycontrol.com/news-topic/sbi-life-insurance-
Magazines: The Times of India The Economic Times
Fri,23 Dec 2012
Business-standard Finance » News » Insurance
Priya Nair Mumbai November 28, 2012
Newspaper : Hindustan Times Live Hindustan
Wed,04 Jan 2013
Books: IC – 33 LIFE INSURANCE (IRDA) jeevan bema
Pathak Umesh Chandra , bharati bema sasthan,
Insurance Institute of India- 2007
IC – 33 LIFE INSURANCE (IRDA) Life Insurance
Chandra S. Bala
Insurance Institute of India-2008
Management Paradise
SBI Life Insurance - January 11th, 2008

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