CHAPTER-1

INTRODUCTION

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INTRODUCTION
The insurance sector was opened up in the year 1999 facilitating the entry of
private players into the industry. With an annual growth rate of 24.31 percent and the largest
number of life insurance policies in force, the potential of the Indian insurance industry is huge.
The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took
place with the ending of Government monopoly and the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting entry restrictions for private players and allowing
foreign players to enter the market with some limits on direct foreign ownership.
According to the CSO, the insurance and banking services contribution to the countrys GDP is
7.1 percent out of which the gross premium collection forms a significant part. Life insurance
penetration in India was less than 1 percent till 1990-91. During the 90s, it was between 1 and 2
percent and from 2001 it was over 2 percent. In 2003-04 it was 2.4 percent. In 2007-08 it was
14percent.
The impetus for increase is due to the active role played by IRDA in licensing private players
and taking positive steps in increasing the insurance awareness among the people. Besides, the
insurance companies in general and private insurance companies in particular, are reaching out to
untapped potential in rural areas with aggressive campaigns.
Innovative products, smart marketing, and aggressive distribution have enabled fledgling
private insurance companies to sign up Indian customers faster than anyone expected. Life
insurance is viewed as a tax saving device. People are now turning to the private sector for
providing them with new products and greater variety for their choice. The improvement in FDI
flows reflected the impact of recent initiatives aimed at creating an enabling environment for FDI
and for encouraging infusion of new technologies and management practices. The Governments
proposal to increase the FDI cap in the insurance sector from the present 26 percent to 49 percent
has raised expectations among the international insurance companies.
Evolution of Insurance:
In the days of yore insurance was in its crude form and was cooperative and voluntary in nature.
When, where and how it originated is still a matter of research in one way or the other was
prevalent in olden days. We can trace its history from the evolution society from hunting stage to
the modern industrial age. A word YAGCHHEM occurs in the worlds most ancient Hindu
Scripture Rig Veda.
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The word YAGCHHEM means insurance. It clearly indicated that about four thousand years
ago insurance was prevalent in its crude form. It was cooperative and voluntary in nature. People
formed different groups of organizations to share the loss among themselves incase of a
particular risk. Each member contributed some amount to a common fund to meet the unforeseen
losses. Sometimes they also contributed equally to compensate person as and when he suffered a
loss. Traces of insurance in the ancient world are also found in the form of marino trade loans or
carriers contracts which included an element of insurance.
Evidence is on records that arrangements embodying the idea of insurance were made in
Babylonia and India at quite an early period. References were made to the concept of insurance
in Manus code Manu Smrity. It was akin to Yagakshemo of Rigveda in which the well
being and security of the community was aimed at. However, there is no evidence that insurance
in its present farm was practiced prior to twelfth century.
Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil

started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company

started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate

the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,
1956, with a capital contribution of Rs. 5 core from the Government of India. The
General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year
1850in Calcutta by the British.

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Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general

insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct

for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the

Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance

business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd.,
the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. And the united India
Insurance Company Ltd. GIC incorporated as a company.

Life Insurance Penetration and Density:

The overall life insurance industry growth has kept pace with the GDP growth in the country. The
countrys economic growth had consistently gone up from 4.3% in 2001 to 8.6% in 2010, before slipping

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to 6.7% in 2012 and to 4.5% in FY 2012-13.However it increased to 4.9% in FY 2013-14.

1.1.

INTRODUCTION TO STUDY:

CONCEPT OF INSURANCE:
Insurance is a policy from a large financial institution that offers a person, company or other
entity reimbursement or financial protection against possible future losses or damages.
Insurance may be described as a social device to reduce or eliminate risks of loss to life and
property. It is a provision, which a prudent man makes against inevitable contingencies, loss or
misfortune.
Under a plan of insurance, a large number of people associate themselves by sharing risks
attached to individuals. As in private life, in business also there are dangers and risks of different
kinds. The aim of all type of insurance is to make provision against such dangers. The risks,
which can be insured against, include fire, the perils of sea (marine insurance), death (life
insurance) and accidents. Any risk contingent upon these may be insured against at a premium a
commensurate with the risk involved. Thus, collective bearing of risks is insurance.

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Insurance business is divided into four classes, such as Life Insurance, Fire, Marine and
Miscellaneous Insurance.
Definition:
Insurance is a contract in which sum of money is paid to the assured in
consideration of insurers incurring risk of paying a large sum upon a given contingency.
- Justice Tindall
Insurance is a contract by which one party for a compensation called in the premium assumes
particular risks of the other party and promises to pay to him or his nominee a certain sum of
money on a specified contingency.
- E.W.Fitterson
The above definitions clearly shows that insurance is a cooperative device to spread the loss
caused by a particular risk over a member of persons who are exposed to it and who agree to
insure themselves against risk. Insurance does not eliminate risk but only reduces the financial
burden, which may be very heavy.

INSURANCE PROVIDE:
Protection to investor.
Accumulation of savings.
Old age pensions
Tax benefits
Functions of insurance:
Provide Protection:
The primary function of insurance is to provide protection against future risk,
accidents and uncertainty. Insurance cannot check the happening of risk, but can
certainly provide for the losses of risk. Insurance is actually a protection against
economic loss, by sharing the risk with others.
Collective bearing of risk:
Insurance is an instrument to share the financial loss of few among many others.
Insurance is a mean by which few losses are shared among larger number of people.

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All the insured contribute the premiums towards a fund and out of which the
persons exposed to a particular risk is paid.
Assessment of risk:
Insurance determines the probable volume of risk by evaluating various factors that
give rise to risk. Risk is the basis for determining the premium rate also.
Provide certainty:
Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device
whereby the uncertain risks may be made more certain.
Small capital to cover larger risk:
Insurance relieves the businessmen from security investments, by paying small amount of
premium against larger risks and uncertainty.
Contributes towards the development of industries:
Insurance provides development opportunity to those larger industries having more risks in their
setting up. Even the financial institutions may be prepared to give credit to sick industrial units
which have insured their assets including plant and machinery.

Means of savings and investment:

Insurance serves as savings and investment, insurance is a compulsory way of
savings and it restricts the unnecessary expenses by the insured's For the purpose of
availing income-tax exemptions also, people invest in insurance.
Source of earning foreign exchange:
Insurance is an international business. The country can earn foreign exchange by
way of issue of marine insurance policies and various other ways.
Risk free trade:
Insurance promotes exports insurance, which makes the foreign trade risk free with the help of
different types of policies under marine insurance cover.
LIFE INSURANCE:
Life insurance may be defined as a contract in which the insurer, inconsideration of a certain
premium, either in a lump sum or by other periodical payments, agrees to pay the assured, or to

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the person for whose benefit the policy is taken, the assured sum of money, on the happening of a
specified event contingent on the human life.
Life insurance is a contract under which the insurer (Insurance Company) inconsideration of a
premium paid undertakes to pay a fixed sum of money on the death of the insured or on the
expiry of a specified period of time Whichever is earlier. In case of life insurance, the payment
for life insurance policy is certain. The Event insured against is sure to happen only the time of
its happening is not known. So life insurance is known as Life Assurance. The subject matter of
insurance is life of human being. Life insurance provides risk coverage to the life of a person. On
death of the person insurance offers protection against loss of income and compensate the
titleholders of the policy.
ROLE OF LIFE INSURANCE:
Life insurance as an investment:
Insurance products yield more than any other investment instruments and it also provides added
incentives or bonus offered by insurance companies.
Life insurance as risk cover:
Insurance is all about risk cover and protection of life. Insurance provides a unique sense of
security that no other forms of invest can provide.
Life insurance as tax planning:
Insurance serves as an excellent tax saving mechanism too.
IMPORTANCE OF LIFE INSURANCE:
Protection against untimely death:
Life insurance provides protection to the dependents of the life insured andthe family of
the assured in case of his untimely death. The dependents or family members get a fixed sum of
money in case of death of the assured.
Saving for old age:
After retirement the earning capacity of a person reduces. Life insurance enables a person to
enjoy peace of mind and a sense of security in his/her.
Promotion of savings:

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Life insurance encourages people to save money compulsorily. When life policy is taken, the
assured is to pay premiums regularly to keep the policy in force and he cannot get back the
premiums, only surrender value can be returned to him. In case of surrender of policy, the
policyholder gets the surrendered value only after the expiry of duration of the policy.
Initiates investments:
Life Insurance Corporation encourages and mobilizes the public savings and canalizes the same
in various investments for the economic development of the country. Life insurance is
an important tool for the mobilization and investment of small savings.
Credit worthiness:
Life insurance policy can be used as a security to raise loans. It improves the credit worthiness of
business.
Social Security:
Life insurance is important for the society as a whole also. Life insurance enables a person to
provide for education and marriage of children and for construction of house. It helps a person to
make financial base for future.
Tax Benefit:
Under the Income Tax Act, premium paid is allowed as a deduction from the total income under
section 80C.
GENERAL INSURANCE:
Insurance of the non-life assets are called general insurance, this includes loss of asset against water, fire,
earthquake etc. with the opening up of the Indian market in insurance sector for private players, in general
insurance the monopoly of the general insurance public sectors companies has been broken. With the entrance of
the new private player market innovative technique has been introduce to capture the market. In general the private
players have captured insurance around 17% of the market.
General insurance is a sector, which alone has many type of insurance coverage in it like Fire Insurance, Marine
Insurance, Motor Insurance, Liability Insurance, Engineering Insurance etc.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA):
In 1999, the Insurance Regulatory and Development Authority (IRDA) were constituted as an
autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as
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a statutory body in April 2000. The key objectives of the IRDA include promotion of competition
so as to enhance customer satisfaction through increased consumer choice and lower premiums,
while ensuring the financial security of the insurance market. The IRDA opened up the market in
August 2000 with the invitation for application for registrations. Foreign companies were
allowed ownership of up to 26%. The Authority has the power to frame regulations under
Section114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations
ranging from registration of companies for carrying on insurance business to protection of
policyholders interests.
ROLE OF IRDA:

Protecting the interests of policyholders.

Establishing guidelines for the operations of insurers and brokers
Specifying the code of conduct, qualifications, and training for insurance intermediaries

and agents.
Promoting efficiency in the conduct of insurance business.
Regulating the investment of funds by insurance companies.
Specifying the percentage of business to be written by insurers in rural sectors.
Handling disputes between insurers and insurance intermediaries.

INSURANCE COMPANIES IN INDIA:

IRDA has tilled now provided registration to 12 private life insurance companies and 9 general
insurance companies. If the existing public sector insurance companies are considered then there
are presently 13 insurance companies in the life side and 13 companies functioning in general
insurance business. General Insurance Corporation has been sanctioned as the "Indian reinsurer"
for underwriting only reinsurance business.
General Insurance companies:
Public Sector:

New India Assurance Company Limited

National Insurance Company Limited
The Oriental Insurance Co. Ltd.
United India Insurance Co. Ltd.
Agriculture Insurance Company of India Ltd

Private Players:
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Bajaj Allianz General Insurance Co. Ltd.

ICICI Lombard General Insurance Co. Ltd.
IFFCO-Tokio General Insurance Co. Ltd.
Reliance General Insurance Co. Ltd.
Royal Sundaram Alliance Insurance Co. Ltd
TATAAIG General Insurance Co. Ltd.
Cholamandalam General Insurance Co. Ltd.

Life Insurance Companies:

Public Sector life Insurance Company:

Life Insurance Corporation of India

Private Sector life Insurance Companies:
Bajaj Allianz Life Insurance Company Ltd.
Birla Sun-Life Insurance Company Ltd.
HDFC Standard Life Insurance Co. Ltd.
ICICI Prudential Life Insurance Co. Ltd.
ING Vysya Life Insurance Company Ltd.
Max New York Life Insurance Co. Ltd.
MetLife Insurance Company Ltd.
Kotak Mahindra Old Mutual Life Ins. Co. Ltd.
SBI Life Insurance Company Limited.
TATAAIG Life Insurance Co. Ltd.
Reliance Life Insurance Co. Ltd.

1.2. NEED FOR THE STUDY

This particular is chosen because organization required promotional activities to promote their product and
services. Promotional activities are playing a vital role to promote their product and services. Promotional activities
are playing a vital in todays market. So it is important to know how far these Promotional activities are creating
brand awareness in the need to increase the quality, creativity and utilization of technology in promotional
activities.
With the increase of market study there is cut through competition Among the business man in the industry.
Some of the other major competitors in this area are ICICI Prudential, Kotak Mahindra Life Insurance and Bajaj
Allianz Insurance. Hence there is all need for study.
1.3.
i.
ii.

OBJECTIVE OF STUDY:
To study customer awareness and perception on promotional strategies adopted by
SBI LIFE.
Study the factors influencing the customer while taking decision of insurance policies.
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iii.
iv.
v.

1.4.

To identify the best Promotional tool to reach customers effectively.

Identify whether SBI LIFE is meeting the needs and Expectations of customers.
To provide suggestion to the SBI LIFE to meet the challenges in the competitive world.

SCOPE OF THE STUDY & LIMITATIONS:

A study has been persuaded through observation of promotional activities like advertisement direct selling public
relation of SBI LIFE.
This study is confined promotion activities of SBI LIFE. To conduct study the questioner has been selected and
also personal interview of different customers and non customers of SBI LIFE situated at different areas within the
twin cities has been taken. For the purpose of the study 100 samples has been selected on the random basis.
LIMITATIONS:

To find out the promotional strategy of the SBI LIFE is difficulty and its requires lot of time, hence time is

one of the constraint for study.

The respondents opinion may be biased.
Market survey for huge sample size requires huge economic involvement, which is a big constraint
therefore sample was restricted to 100 only.

1.5.

METHODOLOGY ADOPTED FOR THE STUDY:

The objective of the project is to understand the Promotional strategies of SBI LIFE insurance.
The data used in the project was collected through the general public who are aware and not aware of the
Life insurance products in SBI LIFE insurance.
1.5.1. SOURCES OF DATA:
Primary data:
The data I collected through a well structured questionnaire, by meeting the people
personally. The questionnaire consists of mainly closed ended questions along with open ended
questions along with open ended question also.
Secondary data:
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This data is collected through

Published results of various companied

News papers
Internet
Reference books

1.5.2. QUESTIONNAIRE:
Name:________________________
(1) Age of respondents
(A) 18-25 (B) 26-40
(2) Occupation:
(A) Employee
(C)Housewife
(E)Student

(C) 41-50 (D) 51 Above

(B) Self Employee/Business

(D) Retired Employee

(3) Income (Per month):

(A) Below Rs.10, 000
(B) Rs.10, 000 to 20,000
(C) Rs.20, 000 to 30,000 (D) Above Rs.30,000
(4) Are you aware of life insurance?
(A) Yes
(B) No
If Yes Continue With Next Question
(5) Do you know about SBI LIFE INSURANCE?
(A) Yes
(B) No
If Yes Continue With Next Question
(6) Are you aware of advertisement given by SBI LIFE INSURANCE?
(A) Yes
(B) No
(7) Through which media you came to know?
(A)Television
(B) Magazine
(C)News paper
(D) Internet
(E)Radio
(8) How do you rate the various advertisements given by the SBI LIFE INSURANCE?
(A) Excellent
(B) Good
(C) Satisfaction
(D) Poor
(E) Very poor
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(9) To what extent media normally affect your purchase decision?

(A) Absolutely
(B) Many A Times
(C) Some Times
(D) Not Affect On Me

(10) How did you come to know about benefits of various policies by SBI LIFE
INSURANCE?
(A) Financial Consultant
(C)Word of Mouth
(E) Dont know

(B) Personal Visit

(D) Sales Executive

(11) Have you taken any insurance from SBI LIFE INSURANCE?
(A) Yes, Name of the insurance___________________________
(B)No Specify________________________
If YES continue with next Question.
If NO Go to Question no. (16)
(12) Which factors influences you more, while making decision to
Take the policy in SBI LIFE INSURANCE?
(A)Advertisement
(B) Word of mouth
(C)Past Experience
(D) Trust on company
(E)Benefits of policies
(13) Which type of policy do you have or you are intending to take?
(A)Endowment
(B) Children plan
(C)Pension plan
(D) Term Plans
(14) How do you rate the policies offered by the SBI LIFE INSURANCE up to
Youre Expectations?
(A) Excellent
(B) Good
(C) Satisfaction
(D) Poor
(E) Very poor
(15) What are the benefits do you expect from policies offered by the
SBI LIFE INSURANCE?
(A) Value Added Benefit
(B) Tax Benefit
(C)Maturity Benefit
(D) Low premium High Returns
(E)Other specify____________________
(16) Reasons for having insurance?
(A)Asset Creation
(B) Uncertainty of Life
(C)Savings
(D) Investment (E) Tax Benefits

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1.5.3. SAMPLE SIZE :

For my study I had taken 100 as my sample size to make a clear analysis.
For the betterment of my project I used statistical tools like sampling methods and graphs are used to
process the data and convert it into useful information that can be used to study the sample.

CHAPTER-2
LITERATURE REVIEW
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INTRODUCTION TO MARKETING:
Marketing is an organizational function and a set of processes for creating, communicating and
delivering value to customers and for managing customer relationships in ways that benefit the
organization and its stake holder.
-THE AMERICAN MARKETING ASSOCIATION.
Marketing is a wide and heavily interconnected subject with extensive publications. it is also an
area of infamous for reinventing itself and its vocabulary according to the times and culture.
-ANTHROPOLOGY SOCIETY.

Marketing is an instructive domain that serves to inform and educate target markets about the
value and competitive advantage of a company and its products. Value is worth derived by the
consumer from owning and using the product. Competitive advantage is a depiction that the
company or its products are each doing something better than their competition in a way that
could benefit the customer.
Chris Newton in his book WHAT IS MARKETING ? Define marketing as every strategy and
decision made in the following twelve areas:

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Identifying and quantifying the need in the market place.

Identifying and quantifying the target markets.
Identifying and optimum cost effective media online and offline to reach the target

markets.
Reviewing the priorities of the offering in your overall product mix matrix.
Identifying and developing the most effective distribution channels be they
Wholesaler network, partnering alliances, and franchising.
Developing effective promotional strategies and effective advertising and supporting

collateral, offers, and launch strategies.

Developing and documenting the sales process.
Ensuring that sales projections reflect realistic production capacities.
Developing nurture programs to optimize the lifetime value of the customer.
Professor E.Jerome McCarthy, also at the Harvard business in the early 1960s, suggested

that the marketing mix contained 4 element: Product, Price, and Promotion.
He popularly categorized marketing into four general sets later his typology became so
popular that his four activity sets, the four pass, have passed into the language.
Marketing Mix
Product
Product variety

Price
List Price

Quality

Discount

Design

Allowances

Features

Payment Period

Brand name

Credit terms

Packing

Promotion
Sales
promotion
Advertisement
Sales force
Public relation
Direct

Place
Channels
Coverage
Assortments
Locations
Inventory
Transport

marketing

Sizes
Service
Warranties
Returns

The 4 ps represented the sellers view of the marketing tools available

for influencing buyers from buyers point of view, each marketing tools is designed to deliver a
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customers benefit. Robert lauter born suggested that the sellers four ps correspondence to the
customers four Cs.
Four ps
1.
2.
3.
4.

Product
Price
Place
Promotion

Four Cs
Customer solution
Customer cost
Convenience
Communication

Wining companies will be those that can meet customers needs economically and
conveniently and with effective communication.
PRODUCT: The product aspects of marketing deal with the specifications of the actual goods or
service, and how it relates to the end users needs and wants. The scope of a product generally
includes supporting elements such as warranties, guarantees and support.
PRICING: This refers to the process of setting a price for a product, including discounts. The
price need not be monetary it can simply be what is exchanged for the product or services, e.g.
time, energy, psychology or attention.
PROMOTION: This includes advertising, sales promotion, publicity, and personal selling,
branding and refer to the various methods of promoting the product, brand, or company.
PLACEMENT: This is also called as distribution it refers to as how the product gets to the
customer for example point of sale and other related activities.
These four elements are called or often regarded as the marketing mix. As well as these
standard four ps, services marketing calls upon an extra three, totaling seven and together as the
extended marketing mix. These are:
PEOPLE: Any person coming into contract with customers can have an impact on overall
satisfaction. As a result of this, they must be appropriately trained, well motivated and right type
of person .Fellow customers are also sometimes referred to under people, as they too can affect
the customers service experience, (e.g. at a sporting event).

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PROCESS: This is the process involved in providing a service and the behavior of people,
which can be crucial to customer satisfaction.
PHYSICAL EVIDENCE: Unlike a product, a service cannot be experienced before it is
delivered, which makes it intangible. This, therefore, means that potential customers could
perceive greater when deciding whether to use a service. This is done by providing physical
evidence, such as case studies, testimonials or demonstrations.

CUSTOMER FOCUS:
Many companies today have a customer focus (or customer orientation). This implies that
the company focuses its activities and production consumer demands. Generally there are three
ways of doing this: the customer driven approach, the sense of identifying market changes and
the product innovation approach.
A formal approach to this customer-focused marketing is known as SIVA (Solution,
Information, Value, and Access). This system is basically the four ps renamed and reworded to
provide a customer focus.
The SIVA model provide a demand/customer centric version alternative to the wellknown 4ps supply side model (product, price , place, promotion) of marketing management.

Product

Solution

Promotion

Information

Price

Value

Place

Access

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The four elements of SIVA model are:

Solution: How appropriate is the solution to the customers
Information: Does the customer know about the solution? If so, how and from whom do they
know enough to let them make a buying decision?
Values: does the customer know the value of the transaction, what it will cost, what are the
benefits, what might they have to sacrifice, what will be their reward?
Access: Where can be customer find the solution? How easily/locally/remotely can they buy it
and take delivery.These are the various aspects which marketers or the companies which focuses
on marketing should take care during customer focus.

CHAPTER-3
COMPANY PROFILE

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COMPANY PROFILE

SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance SBI owns
74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI Life Insurance has an authorized
capital of Rs.2, 000 crore and a paid up capital of Rs.1, 000 crore. State Bank of India enjoys the largest banking
franchise in India. Along with its 6Associate Banks, State Bank Group has the unrivalled strength of over 16,000
branches across the country, arguably the largest in the world. BNP Paribas is the 1st largest French company and
ranks 5th in the banking industry worldwide, 1st bank in Euro Zone as per Global 2000 Forbes 2008. It is 6th most
valuable international banking brand as per Brand Finance2008.

BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zones leading Bank. BNP Paribas, part of
the worlds top 10 groups of banks by market value and part of Europe top 3 banking companies, is one of the
oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life
insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over
50 million clients. BNP Paribas Assurance operates in 41 countries mainly through the Bancassurance and
partnership model.

Multi-distribution Model:
SBI Life has a unique multi-distribution model encompassing vibrant Bancassurance, Retail Agency, Institutional
Alliances and Corporate Solutions distribution channels.SBI Life extensively leverages the State Bank Group
relationship as a platform for cross-selling insurance products along with its numerous banking product packages
such as housing loans and personal loans. SBIs access to over 100 million accounts across the country provides a
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vibrant base for insurance penetration across every region and economic strata in the country, thus ensuring true
financial inclusion. Agency Channel, comprising of the most productive force of over 68,000 Insurance Advisors,
offers door-to-door insurance solutions to customers.

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OUR COMMITMENT:
Our company, with its unique brand and highly committed workforce, is determined to increase life insurance
penetration and offer need-based solutions our citizens, enabling them to live life to the fullest.
I invite you to explore the several possibilities available for being an integral part of this dream, of one of the fastest
growing life insurance companies in the country.
For customers, SBI Life a company of State Bank Group which is synonymous with trust for more than 200
years presents security for you and your loved ones through its range of innovative life insurance solutions. With
the backing of the largest distribution network in the country of over 14,500 bank branches of State Bank and
nearly 200 full-service offices of the company, you are always close to your trusted life insurer.
For prospective business partners, by associating with one of the largest financial brands in the country, SBI Life
gives you a lucrative business opportunity to profit from serving millions of Indians. In terms of career
opportunities, SBI Life presents its most valuable asset, its employees, awork environment which is a blend of
security and excellence.

We seek opportunities to give qualified minority suppliers a chance to succeed. It benefits SBI LIFE and
our communities.
VISION:
To be the most trusted and preferred life insurance provider
Mission:

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"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

Key Milestones:
Financial Year 13-14:

Most Trusted Private Life Insurance Brand 2013 Awarded by The Economic Times, Brand Equity and
Nielsen Survey.Most Trusted Brand identifies brand which posses themost special ingredient - the

Consumers Trust.
Runners Up for the Best Life Insurance Provider 2013 Awarded by Outlook Money The Outlook

Money Awards recognise excellence in Financial Services.

Under-served Market Penetration Award 2013 (Private Sector) Awarded at the Indian Insurance Awards
2013 SBI Life won this award for being pro-active in terms of reaching out to customers in relatively

underpenetrated states and regions in India.

SBI Life has demonstrated effective and speedy claims settlement while maintaining high levels of client
service, satisfaction and focus in handling claims in FY 2012-13, setting up a benchmark for the industry

to follow.
SBI Life was ranked 36th amongst Great Places to work in India. Indias Best Companies to Work for
Study 2013, the largest study in the country on workplace culture, attracted participation from around 550

organisations spanning across 22 industries.

The BFSI Award recognises the best performances of various Banking, Finance and Insurance Services.
The award focuses on best of the best practices of the BFSI industry based on the strategy, security,

customer service and the future technology challenges and innovations.

ISO 27001 Certification for Information Security Management System (ISMS).
ISO 9001:2008 Certification for Quality Management Systems for Planning, Designing and Developing
Training Programs.

24 | P a g e

Financial Year 11-12:

Awarded the most coveted NDTV Profit Business Leadership Award, twice in a row, 2010 & 2011.
Awarded Most Trusted Life Insurance Brand - II By The Economic Times, Brand Equity and Nielsen,

Most Trusted Brands 2011.

Globally topped the prestigious Million Dollar Round Table (MDRT) for having the maximum number

of MDRT members, for three years consecutively.

CRISIL reaffirmed its AAA / Stable rating to SBI Life, indicating highest financial strength to meet

policyholder obligations.
ICRA reaffirmed its iAAA rating indicating highest claims paying ability and a fundamentally strong

position.
Won one of the most prestigious quality distinction, IMC Ramkrishna Bajaj National Quality
Awards 2011- "Certificate of Merit"Awarded Silver Shield by ICAI for Excellence in Financial

Reporting for FY 2010 11 under the Insurance category.

Won Best Presented Accounts Award by The South Asian Federation of Accountants (SAFA), in the
Insurance Category for the Annual Report FY 2009.

Financial Year 10-11:

SBI Life won the coveted Bloomberg UTV Financial Leadership Award 2011 - "Life Insurer of the year".
Won the most coveted NDTV Profit Business Leadership Award 2010.
Globally topped the prestigious Million Dollar Round Table (MDRT) 2010 for having the maximum

number of MDRT members.

Awarded the Gold Shield by Institute of Chartered Accountants of India (ICAI) for Excellence in

Financial Reporting.
Won the ICS Quality Champion Award 2010 for Continual Quality Improvement.
Adjudged Best Life Insurer 2010 - Runner Up by Outlook Money.
Launched an innovative customer care initiative - SMS SOLVE for prompt Grievance Redressal.
Appraised at Maturity level 3 of Capability Maturity Model Integration (CMMI) Version 1.2 for its ISG

Division.
ICRA reaffirmed iAAA rating to SBI Life, indicating highest claims paying ability and meeting

policyholders obligations.
CRISIL, countrys leading rating agency, reaffirmed its highest financial rating AAA/Stable to SBI Life.
25 | P a g e

Financial Year 09-10:

Reported a robust Net Profit of Rs.276 Crores.

Crossed Rs.10,000 Crores in Gross Written Premium (GWP).
Assets Under Management (AUM) grew by 96% to Rs.28, 551 Crores.
Globally topped the prestigious MDRT 2009 for having Maximum number of MDRT Members.
ICRA reaffirmed iAAA rating to SBI Life indicating highest claims paying ability.
Awarded ISO Certification (ISO/IEC 27001:2005) for Information Security Management System

(ISMS)
Retained ISO 9001:2000 certificate for superior claim settlement process.

Financial Year 08-09:

Ranked among global top three in terms of number of Million Dollar Round Table (MDRT) members.
Bagged the coveted personal finance award-Outlook Money NDTV Profit "Best Life Insurer 2008".
CRISIL, countrys leading rating agency, reaffirmed its highest financial rating AAA/Stable to SBI Life.

In 2007, SBI Life became the first life insurer in India to receive this rating from CRISI
ICRA assigned iAAA rating indicating highest claims paying ability to SBI Life Insurance.
Retained ISO 9001:2000 certificate for superior claim settlement process.

Financial Year 07-08:

Ranked amongst global top five life insurance companies in the number of MDRT members.
Rated as the The Most Trusted Private Life Insurer according to a survey conducted by Brand Equity in

association with AC Nielsen ORG-MARG and the Economic Times Intelligence Bureau.
Received the highest financial rating AAAfrom CRISIL.
Forayed into micro insurance with the launch of Grameen Shakti in Bhubaneshwar, Orissa for the

economically underprivileged sections of society.

Received ISO 9001: 2000 certification for superior claim settlement process.
Received CMMI Level 3 certification for IT processes and software development capabilities.
Ranked amongst global top five life insurance companies in the number of MDRT members.
Rated as the The Most Trusted Private Life Insurer according to a survey conducted by Brand Equity in

association with AC Nielsen ORG-MARG and the Economic Times Intelligence Bureau.
Received the highest financial rating AAAfrom CRISIL.
Forayed into micro insurance with the launch of Grameen Shakti in Bhubaneshwar, Orissa for the

economically underprivileged sections of society.

Received ISO 9001: 2000 certification for superior claim settlement process.
Received CMMI Level 3 certification for IT processes and software development capabilities.

26 | P a g e

Financial Year 06-07:

Second consecutive year of Profitability

More than 6.40 Million lives covered.

Financial Year 05-06:

Reported a robust net profit of Rs. 2.02 Cr

PRODUCT PROFILE:
INDIVIDUAL UNIT LINKED:
Unit Linked Plans

SBI Life - Smart Wealth Builder

SBI Life - Smart Wealth Assure
SBI Life - Saral Maha Anand
SBI Life - Smart Scholar
SBI Life - Smart Elite
SBI Life - Smart Power

Child plans:
SBI LIFE-Smart Scholar

Pension plans:

SBI Life - Saral pension

SBI Life Retire Smart
SBI Life Annuity Plus

Protection plans:
SBI Life - Smart Shield
SBI Life - Saral Shield
SBI Life - eShield
SBI Life - Grameen Bima
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Saving plans:

SBI Life - Smart Money Back Gold

SBI Life - Shubh Nivesh
SBI Life - Saral Swadhan+
SBI Life - Flexi Smart Plus

Withdrawn products & Riders:

Unit Linked Plans

SBI Life - Unit Plus Super

SBI Life - Saral Maha Anand
SBI Life - Smart Horizon
SBI Life - Smart Performer
SBI Life - Smart Wealth Assure
SBI Life - Smart Elite
Health plans:

SBI Life - Smart Health Insurance

SBI Life - Group Criti9
SBI Life - Hospital Cash

Online plans:
SBI shield
Group palns:
Corporate Solutions

Retirement Solutions
SBI Life - Kalyan ULIP Plus
SBI life - CapAssure Gold
SBI life - Swarna Jeevan
SBI Life - Gaurav Jeevan

Group protection plans:

SBI Life - Sampoorn Suraksha
SBI Life - Suraksha Plus

Group Loan Protection Products:

SBI Life RiNn Raksha
28 | P a g e

Group Micro Insurance Plans:

SBI Life - Grameen Shakti
SBI Life - Grameen Super Suraksha

Competitors:

Life Insurance Corporation of India

ICICI Prudential
Kotak Mahindra Life Insurance
Reliance Life Insurance
Met Life InsuranceTata Aig Life Insurance
Ing Vysya Life Insurance
Aviva Life Insurance
Sahara India Life Insurance
Sri Ram Life Insurance
Bajaj Allianz Life Insurance
Birla Sun Life Insurance
Birla Sun Life Insurance
Hdfc Life Insurance

Market Share of SBI LIFE:

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Man Power Profile:

SBI Lifes workforce strength stands at 9114 as on 31st March 2014

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CHAPTER-4
DATA ANALYSIS
& INTERPRETATION
31 | P a g e

1) No. of Age respondents

Age of the respondents
Age
18-25
26-40
41-50
51 Above
Total

Respondents
21
38
23
18
100

Percentage
21%
38%
23%
18%
100%

From the above table 38% of the people belong to the age group of 26 to 40. i.e, the people between 41-50 is 23,
18-25 is 21 % and the least above 51 i.e.18% .
Pictographic representation

32 | P a g e

Age Group

40
35
30
25
20
15
10
5
0
18-25

26-40

41-50

50 Above

2) Occupation
Occupation Mode
Occupation
Employee
Business/Self Employee
House Wife
Retired Employee
Student
Total

No. of persons
24
45
5
14
12
100

percentage
24%
45%
5%
14%
12%
100%
33 | P a g e

From the above table business and self employees are 48%, employees are 24%, retired Employees 14%,
and house wifes and student are 12%.
Pictographic representation
Occupation Mode

60
50
40
30
20

Series 3

10
0

3) Income
34 | P a g e

Income Levels of Respondents

Income range
No. of customers
percentage
< 10k
42
42%
10-20k
33
33%
20-30k
12
12%
>30k
13
13%
Total
100
100%
From the above respondents 42% fall under below 10,000 , 33% fall under income group 10-20k , 13%
fall under income group above 30k , 12% fall under income group 20-30k.
Pictographic representation
Income Levels

45
40
35
30
25
Series 3

20
15
10
5
0
<10k

10-20k

20-30k

>30k

35 | P a g e

4) Are you aware of life insurance ?

Respondents Aware of life insurance
Particular
Yes
No
Total

No. Of Respondents
100
----100

Percentage
100%
----100%

From the above table total no.of respondents aware of life insurance.
Pictographic representation

Aware of life Insurance

yes
No

36 | P a g e

5) Do yo know about SBI LIFE ?

Respondents Aware of SBI LIFE
Particular
Yes
No
Total

No. of respondent
77
23
100

Percentage
77%
23%
100%

From the above 77% respondents know about SBI LIFE and 33% respondents are not aware od
SBI LIFE.
Pictographic representation

Aware Of SBI LIFE

NO; 23%

YES; 77%

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6) Are you aware of advertisement given by SBI LIFE?

Respondents Aware of advertisement given by SBI LIFE
Particulars
Yes
No
Total

No. of respondents
77
-77

Percentage
100%
--100%

The about table clearly shows that 100% of respondents aware of advertisements given by SBI
LIFE.
Pictographic representation

Aware of SBI LIFE

Yes; 100%

38 | P a g e

7) Through which media came to know about SBI LIFE?(Multipule respondents)

Respondents by which media they came to know about SBI LIFE.
Particulars
Television
Magazine
News Paper
Internet
Radio
Total

No. of Respondents
69
45
45
23
32
214

Percentage
32%
21%
21%
15%
11%
100%

From the above table 32% of the respondents came to know about SBI LIFE through television ,
21% through news papers and magazines through radio and 11% through internet.
Pictographic representation

Multiple respondents
Television

Magazine

News Paper

Internet

Radio

11%
32%

15%

21%

21%

39 | P a g e

8) How do you rate the various advertisements given by the SBI LIFE?
Ratings given to advertisements by respondents
Particulars
No. of respondents
Percentage
Excellent
15
20%
Good
44
57%
Average
18
23%
Poor
--Very poor
--Total
77
100%
Above table shows that 57% the of respondents have the advertisement given my SBI LIFE as good ,23% of the
respondents have rated the advertisement given by SBI LIFE as average and 20% respondents given the rate
Excellent.
Pictographic representation
50
45
40
35
30
25

Column2

20
15
10
5
0
Excellent

GoodAverage

Average

Poor

Very poor

9) To what extent media normally affect your purchase decision while making decision to take the policy in
SBI LIFE?
40 | P a g e

Media affect on respondents purchase decision

Particulars
No. of responses
Percentage
Greater Impact
--Most of the time
07
10%
Some time
48
62%
No impact
22
28%
Total
77
100%
This question has been framed to take opinion of respondents on the impact of media in their purchase
decision of SBI LIFE. It is found from the study that the majority of the respondents i.e. 62% gets influenced by
media sometimes only, 28% of the respondents opined that there is no impact of media their decision .while very
fewer saying that they get influenced by media most of the time . Hence, from the study we can infer that majority
of the respondent gets influenced sometimes by the media while taking decision about SBI LIFE.
Pictographic representation

60
50
40
30
20
10

Column2

10) How did you come to know about benefits of various policies by SBI LIFE?
41 | P a g e

Respondents come to know about benefits of policies

Particulars
Financial Consultant
Personal Visit
Word of Mouth
Sales Executive
Dont Know
Total

NO .Of Respondents
22
05
24
08
18
77

Percentage
29%
06%
32%
10%
23%
100%

The above shows that 32% of respondents came to know through word of mouth, 29% of
respondents through financial consultants , 10% of respondents through sales executives and 6% of respondent by
personal visit and 23% respondents dont know about the SBI LIFE.
Pictographic representation

Benefits of policices by SBI LIFE

23%

29%

Financial Consultant
Personal Visit
Word of Mouth

10%

6%

Sales Executive
Dont Know

32%

11) Have you taken any insurance from SBI LIFE?

42 | P a g e

Respondents taken insurance policy from SBI LIFE

Particulars
Yes
No
Total

NO .Of Respondents
40
37
77

Percentage
52%
48%
100%

Above table shows that 52% respondents have taken the insurance from SBI LIFE and the 48% didnt take any
policy.
Pictographic representation

Taken insurance policy from SBI LIFE

No; 48%

Yes; 52%

12) Which factors influence you more, while making decision to take the policy in SBI LIFE?
Factors influenced customers to take the policy in SBI LIFE?
43 | P a g e

Particulars
Advertisement

NO .Of Respondents
--

Percentage
--

Word of mouth

13

32%

Past Experience

06

30%

Trust On Company

09

23%

Benefits Of Policies

12

15%

Total

40

100%

Above table that 32% of customers got influenced by word of mouth, 30% of customer
influenced by benefits of polices 23% of customers influence by trust on company, 15% of customer influence by
past experience and none of the customers influence by advertisement to make decision to take policy in SBI
LIFE.
Pictographic representation

Decision to take the policy in SBI LIFE

Benefits Of Policies; 15%

Word of mouth; 32%

Trust On Company; 23%

Past Experience; 30%

13) Which type of policy do you have?

44 | P a g e

Type of policies customers having

Particulars
Endowment
Children plan
Pension plan
Term plan
Total

NO .Of Respondents
08
15
08
09
40

Percentage
20%
37%
20%
23%
100%

It is inferred from the above table 37% of customers having children plan, 23% of customers having term
plan, 20% of customers having pension and endowment plans.
Pictographic representation

Policies taken by customers

Term plan; 23%

Endowment; 20%

Pension plan; 20%

Children plan; 37%

14) How do you rate the policies offered by the SBI LIFE up to your Expectations?
Rating of Policies by SBI LIFE up to customer expectations
45 | P a g e

Particulars
Excellent
Good
Satisfaction
Poor
Very poor
Total

No. of respondents
11
23
06
--40

Percentage
28%
57%
15%
--100%

The above table shows that 57% customers rate Good, 28% of customers
have rated as excellent , 15% of customers rated satisfaction to the polices offered by SBI LIFE up to their
expectation.
Pictographic representation

Customer expectations

Satisfaction; 15%
Excellent; 28%

Good; 57%

15) What are the benefits do you expect from policies offered by the SBI LIFE?
Benefits expect from policies offered by the SBI LIFE
Particulars

No. of respondents

Percentage
46 | P a g e

Value Added Benefit

Tax Benefit
Maturity Benefit
Low Premium High
Other
Total

09
33
12
23
-77

12%
42%
16%
30%
-100%

It is Observed from the Above table 42% of respondents are expecting Tax benefit ,30% of respondents
expecting Low premium high returns ,16% of respondents expecting maturity benefits, 12% respondents
expecting value added benefits from the policies offered by the SBI LIFE.
Pictographic representation

Determinents of respondents
Value Added Benefit; 12%
Low Premium High; 30%

Maturity Benefit; 16%

Tax Benefit; 42%

16) Reasons for having insurance?

Reasons for having insurance
Particulars
Asset creation
Uncertainty Of Life

No. of respondents
14
20

Percentage
18%
26%
47 | P a g e

Savings
Investment
Tax benefits
Total

19
20
04
77

25%
26%
05%
100%

By the above table 26% of respondents believe that insurance is for uncertainty of life and investment,
255 of respondents believe that insurance is for savings, 18% of respondents believe that insurance is for Asset
creation and 5% of respondents believe that insurance for tax benefit only.
Pictographic representation

Tax benefits; 5
Asset creation; 18
Investment; 26

Uncertainty Of Life; 26

Savings; 25

48 | P a g e

CHAPTER-5
FINDINGS:

FINDINGS:
Insurance requirement are increasing year by year.
The time constraint is difficult to get more appointments from customer.
SBI Life mainly trying to build public relation in market.
Customers are mainly preferred online mode to renewal it.
They have to improve more online insurance policies.
In private sector SBI Life is the more trusted insurance policy which can recover within the

time.
Business/self employee prefer to have insurance.
Some of the plan which is not flexible to according to customer premium requirement.
SBI Life selling strategy through baneassurasu (BDM-business development management).

They motivate the CIF and also give some benefits to them.
Customers decisions are mainly depend on benefits of policy.

49 | P a g e

CHAPTER-6
CONCLUSION
50 | P a g e

&
RECOMMENDATIONS

CONCLUSION:
During the course of the study I had been exposure to information of promotional activities related to the SBI
LIFE products. Leading to the interaction with various people giving knowledge experience.
Based on the analysis and findings the conclusion that can be drawn is that the advertisement is not
influencing certain relations only most customer came to know benefits of policies and influenced to take policy in
SBI LIFE.
Using finding and suggestions the firm may get benefited for performance in future to effective
advertisement, direct selling and customer relationship management.

RECOMMENDATIONS:

Most of the people income below 10k so for this people company should introduce low premium polices.
Most of the people came to know about SBI LIFE through television so the organization should briefly
explain about benefits of polices through television. By using celebrities to motivate and influence the

people.
Many people come to know about benefits of policies by SBI LIFE through financial consultant and
word of mouth. So the company should increase the strength of the financial consultant. And develop the
customer relationship management.

51 | P a g e

Maximum no of people expecting tax benefit polices from SBI LIFE so introduce more polices which

have the tax benefit.

The respondents determine that insurance is for investment and savings so introduce ULIP rather

Traditional Polices.
The real estate and IT boom the income levels of the people had been rising in last three years, but
because of global economic recession the income level of people fall down. So there is lot of fluctuation
in individual income year by year so consumer behavior and perception to words the insurance policies is
changing, so the organization should focus on the market research so that organization can understand the
customer needs and expectations to satisfy them.

6.1.BIBILOGRAPHY:

Marketing Management- Philip kotler

Marketing Research Naresh Malhotra
Principles of Marketing Philip kotler
Advertising and promotion George. E.Belch & Michal

A.Belch
www.wikipedia.com
www.sbilife.com
www.licindia.com
http://financialservices.gov.in/
www.irda.com
www.google.com
http://www.policybazaar.com/

52 | P a g e

6.2.ANNEXURE:

Name:________________________
(3) Age of respondents
(B) 18-25 (B) 26-40
(4) Occupation:
(A) Employee
(C)Housewife
(E)Student

(C) 41-50 (D) 51 Above

(B) Self Employee/Business

(D) Retired Employee

(3) Income (Per month):

(A) Below Rs.10, 000
(B) Rs.10, 000 to 20,000
(C) Rs.20, 000 to 30,000 (D) Above Rs.30,000
(4) Are you aware of life insurance?
(A) Yes
(B) No
If Yes Continue With Next Question
(5) Do you know about SBI LIFE INSURANCE?
(A) Yes
(B) No
If Yes Continue With Next Question
(6) Are you aware of advertisement given by SBI LIFE INSURANCE?
(A) Yes
(B) No
(7) Through which media you came to know?
(A)Television
(B) Magazine
(C)News paper
(D) Internet
(E)Radio
53 | P a g e

(8) How do you rate the various advertisements given by the SBI LIFE INSURANCE?
(A) Excellent
(B) Good
(C) Satisfaction
(D) Poor
(E) Very poor
(9) To what extent media normally affect your purchase decision?
(A) Absolutely
(B) Many A Times
(C) Some Times
(D) Not Affect On Me
(10) How did you come to know about benefits of various policies by SBI LIFE
INSURANCE?
(A) Financial Consultant
(C)Word of Mouth
(E) Dont know

(B) Personal Visit

(D) Sales Executive

(11) Have you taken any insurance from SBI LIFE INSURANCE?
(A) Yes, Name of the insurance___________________________
(B)No Specify________________________
If YES continue with next Question.
If NO Go to Question no. (16)
(12) Which factors influences you more, while making decision to
Take the policy in SBI LIFE INSURANCE?
(A)Advertisement
(B) Word of mouth
(C)Past Experience
(D) Trust on company
(E)Benefits of policies
(13) Which type of policy do you have or you are intending to take?
(A)Endowment
(B) Children plan
(C)Pension plan
(D) Term Plans
(14) How do you rate the policies offered by the SBI LIFE INSURANCE up to
Youre Expectations?
(A) Excellent
(B) Good
(C) Satisfaction
(D) Poor
(E) Very poor
(15) What are the benefits do you expect from policies offered by the
SBI LIFE INSURANCE?
(A) Value Added Benefit
(B) Tax Benefit
(C)Maturity Benefit
(D) Low premium High Returns
(E)Other specify____________________
(16) Reasons for having insurance?
(A)Asset Creation
(B) Uncertainty of Life
(C)Savings
(D) Investment
(E) Tax Benefits
54 | P a g e