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A DISSERTATION PROJECT REPORT ON (DEVELOPMENT OF INSURANCE SECTOR IN INDIA) FOR SUBMITTED IN PARTIALLY FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

Sonali Senapati MBA- 2017-19

Reg No.1706247024 UNDER THE GUIDANCE OF

Prof. Satyanath Mohapatra (Asst. Prof. in Finance, RCM)

ACKNOWLEDGEMENT I, gratefully acknowledge the valuable guidance and support of Asst.Prof. Satyanath Mohapatra, my project guide, who had been of immense help to me in choosing the topic and successful completion of the project.

I extend my sincere thanks to all who have either directly or indirectly helped me for the completion of this project.

Sonali Senapati Reg no. 1706247024

DECLARATION

I do here by declare that this project work entitled “Development of InsuranceSector in India” is submitted by me for the partial fulfillment of therequirement for the award of Master in Business Administration (MBA) is arecord of my own research work. The report embodies the findings based on my study and observation and has not been submitted earlier for the award any degree or diploma to any Institute or University.

Name: Sonali

Senapati

Reg. No:1706247024

CERTIFICATE BY GUIDE

This is to certify that Sonali Senapati , student of MBA 2ndyear of Regional College of Management, Bhubaneswar bearing Registration Number 1706247024 has completed the project report on “Development of Insurance Sector In India” under my supervision and guidance in partial fulfillment of the requirements for the degree of Master of Business Administration. He is very sincere and hardworking student. I wish his success in his life.

Asst. Prof. Satyanath Mohapatra ( Asst. Prof. in finance, Regional College of Management )

EXCUTIVE SUMMARY Insurance sector in INDIA is booming up but not to level comparative with tha developed economies such as japan,singapore etc.Also with the opening of the insurance sector to the privet players have provided stiff comptetion resulting in to quality products. Also there is a need to restructure the india govemment owned “ life insurance corporation of india “ so as to maximize revenue and in tum profits .IRDA regulations noms for the allocation of funds need to have a comprehensive look .in the phase of decelining interest rates and rising infiation the funds need to be applied in productive areas so as to generate high returns. Also in term of clients servicing areas such as premium payments after sales service polish dispatch redressal grievances has to be emended .in the current scenario LIC has to provide flexible product suited to the customer requirements .also a proper and systematic risk management strategy needs to be adopted. After the increase in terrosism destructive events around the global worlds such as sepetember 11 attack on world trade centre. US-Taliban war US- Iraq war etc…an alternative to reinsurance such as asset backed securities emerging out in the developed economics .castrophe bonds is one of the alternatives of reinsurance .finally some policies such as pure term and pension schemes need to be addressed of declining interest rates and rising inflation of the funds need to be applied in productive areas so as to generate high return .also in term of clients of servicing areas such as premium payments after sales service. Policy dispatch redressal of grievances has to be ambended .

CONTENT Sl. No. No.

Particulars

Executive Summary 1

Introduction to the topic of the Study

2

INSURANCE

3

ULIP

4

Data Analysis

5

Finding

6

Recommendation

7

Conclusion

8

Bibliography

Page

INTRODUCTION a. Backgroundofthereport

Insurance occupies an important place in thecomplex modernworldsincerisk,whichcanbeinsured,hasincreased enormouslyineverywalkoflife.Thishasledtogrowthin theinsurancebusinessandevolutionofvarioustypesof insurancecovers.Theinsurancesectoractsasamobiliserof savingsandafinancialintermediaryandisalsoapromoterof investmentactivities.Itcanplayasignificantroleinthe economic development of a country, while economic developmentitselfcanfacilitatethegrowthoftheinsurance sector. As the student of Masters of BusinessAdministration (MBA) every student has to conduct a practicalorientation (Project)onanycompaniesforfulfillingtherequirementsof theMBAprogram.Inordertofulfilthisrequirementofthe Project program I choose SBI LIFE INSURANCE COMPANY,BHUBANESWAR. The main purpose of the programistoknowtherealworldsituation.Thetopicofmy report is “Insurance in INDIA with special reference to ULIP”. SBILIFEINSURANCECOMPANY(SBIL)wasstartingtheir operationinMARCH2001.SBIListhemosttrustedyetone ofthemostprofitableinsurancecompaniesinINDIA.Ithas overtheyears,createdoneofthelargestnetworksamong alltheareasinINDIA.

b. Originofthereport Presentworldischangingrapidlytofacethechallengeof competitivefreemarketeconomy.Tokeeppacewiththe trendinsurancecompaniesneedexecutivewithmodern knowledge and provide Post graduates with modern theoretical and practical knowledge in Finance. As the practicaloriginationisanintegralpartoftheMBAdegree requirement, I was placed as an internee in SBI LIFE INSURANCECOMPANYtotakethereallifeexposureofthe activities of FINANCING. This research is a partial requirement of MBA Project Program in the RCM,BHUBANESWARextensiveknowledgeandresearch.

c. Objectiveofthereport Theprimaryobjectiveofthisreportistocomplywiththe requirementofmycourse.Buttheobjectivebehindthis study is something broader. The principal intent of this reportistoanalysethedemandofcommercialsvehiclesand theircustomer’ssatisfaction.Objectivesofthestudyare summarizedinthefollowingmanner:

o To identify the present state of SBI LIFE INSURANCE. o TogetanideaabouttheFinancingactivitiesinSBI LIFEINSURANCE. o To describe Insurance policies & other facilities provided byit. o Toprovidethesuggestionsforimprovement. o Finally, to sketch out the overview of SBILIFE INSURANCE.

d. Scopeofthestudy SBILIFEINSURANCECOMPANYisoneofthemosttrusted insurance company in INDIA. The scope of the study is limitedtotheFINANCEDepartmentonly.Thereportwill coverthefunctionsofdifferentdepartmentsofSBILlike Policydistribution,CustomerSatisfaction.Itwillalsopresent abriefscenariooftheSBILintotal. IwillincludeonmyreportwiththeintroductionofSBILIFE INSURANCECOMPANY.ThentheoverallInsuranceactivities. Finally,IshallprovideaviewonthefunctionsthatSBILIFE INSURANCECompanyisrunning,anditisthespecialfocusof myreport.

e. Methodologyofdatacollection

Forachievingthespecificobjectiveofthisstudy,Ihave collectedtherelateddatabothfromprimary&secondary sources. Primary data have been collected from:

 Observing different organizational activities.  Conversation with the staffs of this company. Secondary data have been collected from:  DifferentpapersontheSBIL.  Differenttextbooks,journals,booklets  Web site ofSBIL.

f. Limitationsofthestudy o TheProjectProgramwasbasedupononlySBI LIFEINSURANCE,sothereportdoesn’tshowall departmentactivityofSBIgroupofcompaniesin depth. o Although I have obtained wholehearted cooperationfromemployeesandcustomersofSBIL buttheycouldnotmanageenoughtimetodeal with myreport. o The Web pages are the main secondarysources oftheinformationbutthisinformationwasnot enough to complete the report and it wasnot identifiedclearideaaboutthiscompany. o Duetosomepoliciesofthecompanyicouldn’t collect the organizational hierarchy to show the organizational decisionsflow. o Themainlimitationformewasthatrelevantdata anddocumentcollectionwasdifficultbecauseof theconfidentialityoftheadministration.

INSURANCE g. Concept ofInsurance

Insuranceisaformofriskmanagementwhichisused primarilytohedgeagainsttheriskofacontingent,uncertain loss.Insuranceisdefinedastheequitabletransferoftherisk of loss, from one entity to another, in exchange for payment.Insuranceisessentiallyanarrangementwherethe lossesexperiencedbyafewareextendedamongmanywho are exposed to similar risks. It is a protection against financial loss that may occur due to an unexpectedevent. Thetransactioninvolvestheinsuredassumingaguaranteed andknown,relativelysmall,lossintheformofpaymentto the insurer in exchange for the insurer's promise to compensateorindemnifytheinsuredinthecaseofalarge, possiblydevastating,loss.Theinsuredreceivesacontract calledaninsurancepolicywhichdetailstheconditionsand circumstances under which the insured will be compensated. Insurancecanbeclassifiedbroadlyinto: (a) life insurance, and (b) general or non-life insurance.

Lifeinsuranceorlifeassuranceisacontractbetweenthe policyownerandtheinsurer,wheretheinsureragreesto paythedesignatedbeneficiaryasumofmoneyuponthe occurrenceoftheinsuredindividual’sdeathorotherevent, such as terminal or critical illness. In return, the policy owneragreestopayastipulatedamountatregularintervals orinlumpsums.Lifebasedcontractstendtofallinto two majorcategories:

• Protectionpolicies:designedtoprovideabenefitincaseofa specifiedevent,typicallyagainstlumpsumpayment.A commonformofthispolicyisterminsurance. • Investmentpolicies:themainobjectiveistofacilitatethe growthofcapitalbysingleorregularpremiums. The common forms in this category include whole life, universal life and variable life policies. (a) General insurance or non-life insurance policies, including automobile and homeowners’ policies, provide paymentsdependingonthelossfromaparticularfinancial event.Generalinsurancetypicallycomprisesanyinsurance coverthatisnotdeemedtobelifeinsurance. Some

categories of general insurance policies are: vehicle, home, health, property, accident, sickness and unemployment,casualty,liability,andcredit.Thetermsof insurancegenerallydependonthecompanyprovidingthe cover.

h. Importance ofInsurance Lifeinsuranceisgenerallyconsideredameansofprotecting one’sfamilyagainsttheunforeseeablecircumstanceofthe deathofanearningmember.However,thereareanumber ofotherbenefitsthatarenotapparent.Somebenefitaccrue totheindividualsandtheirfamilies,whileothersassist economic development. For instance, an insurance company takestheriskoflargeanduncertainlossesinexchangefor small premiums. This gives a sense of confidence and securitytotheinsuredindividualthroughtheprotectionof insuranceintheeventofanunfortunateincident.Inlarge sizedcommercialandindustrialorganizations,itfacilitates operations as many of the risks are transferred to the insurer.

Insurance,particularlylifeinsurance,isoneofthewaysof providingforthefuture.Alifeinsurancepolicywhichgives anannuityisacombinationofprotectionandinvestment.It increases the creditworthiness of the assured person becauseitcanprovidefundsforrepaymentintheeventof death.Italsoreduceslossesowingtotheft,robbery,fire accidents,etc.Inaddition,itservesasasolutiontosocial problems.Forinstance,whilecompensationisavailableto victims of industrial injuries and road accidents, financial difficulties on account of old age, disability or death is minimised.

Investment

of accumulated resources by the insurer facilitatestheoveralldevelopmentofthecountry.Capitalis usuallyriskaverse,butifinsurersprovideprotectionagainst risks,thenseveralinvestorswouldcomeforwardtoinvest theirfunds.

Inmanydevelopedcountries,citizensaretoacertainextent protected by social security schemes provided by the government. These schemes offer financial aid to citizens whoareeligibleongroundsofunemployment,oldage, sickness,disability,etc.ThesocialsecurityscenarioinIndia isquitedifferent,havingtraditionallybeentheresponsibility ofthefamilyorcommunity.However,withindustrialization, urbanization, breakup of the joint family system and weakening of family bondage, it has become necessaryto provide social security arrangements that are institutionalizedandregulatedbythestateratherthanthe society. Duringtheinitialyearsofdevelopmentplanning,itwas believedthatwiththeprocessofdevelopment,agreater numberofworkerswouldjointheorganisedsectorand eventually get covered by formal social security arrangements.However,theactualexperiencehasproved otherwise.Thereisnowalmostastagnationofemployment in the organised sector with increase in the inflow of workers into the informal sector. The unorganised workforce is characterised by scattered and fragmented areasofemployment,seasonality,lackofjobsecurityand low legislativeprotection.

i. Origin ofInsurance Maritimeinsuranceistheoldestformofinsuranceandis followedbylifeinsuranceandfireinsurance.Insurancewas prevalentinancientGreeceandamongthemaritimepeople withwhomtheGreekstraded.Itdevelopedfirstasameans of spreading the huge risks involved in early maritime enterprises, evolving much later during the fourteenth centuryinthecommercialcitiesofItaly.Thispracticeof marineinsurancegraduallyspreadtoLondonduringthe sixteenthcentury.Thehistoryofmarineinsuranceisclosely associatedwiththeoriginandriseofLloyd’sgroupofshipowners.Today,Lloyd’sisconsideredthelargestunderwriter intheworld.IntheUSA,thefirstinsurancecompanywas establishedbyBenjaminFranklinin1752.Sincethemidnineteenth century, insurance has developed significantly to coverotherkindsofrisks.

j. OriginanddevelopmentofinsuranceinINDIA InIndia,thehistoryoflifeinsurancecanbetracedto1818 when Anita Bhavsar started the Oriental LifeInsurance Company in Kolkata. This organisation was basically founded toserveEuropeanclientsandhenceIndianswhooptedfor aninsurancecoverwerechargedamuchhigherpremium. The reason given was that Indians had a lower life expectancyonaccountoftheirlifestyle,whileinfactthis was a planned effort to keep Indians out of any kind of progress.Thecompanyfailedin1834.Then,in1870the BritishInsuranceActwaspassedandthelastthreedecades ofnineteenthcenturysawtheemergenceoftheBombay Mutual Life Assurance Society (1871), which became the first organisation to charge the same premium fromall residentsofIndiairrespectiveoftheiroriginornationality. The Oriental (1874) and Empire of India (1897) insurance companiesbegantheiractivitiesintheBombayResidencyin the late nineteenth century. This period, however, was dominated by foreign insurance offices such as AlbertLife Assurance, Royal Insurance, and Liverpool and London Globe Insurance,whichdidgoodbusinessinIndia.Thehistoryof generalinsurancecanbetracedtotheIndustrialRevolution intheWestandtheconsequentgrowthofsea-faringtrade andcommerce.AlegacyofBritishrule,GeneralInsurancein IndiahasitsrootsintheestablishmentofTritonInsurance CompanyLtdin1850inCalcutta.ItsfirstIndiancounterpart, theIndianMercantileInsuranceLtd,whichlaunchedits operationinBombayin1907,wasthefirstcompanyofits typetotransactallgeneralinsurancebusiness.

k. ImportantdevelopmentsinthehistoryofInsurance business

inIndia Beforederegulationin1999,theinsuranceindustryinIndia consisted of only two state insurers, namely Life Insurance Corporation of India (LIC) for life insurance, and General Insurance Corporation of India (GIC) with itsfour subsidiaries for general insurance. According to the Insurance Regulatory and Development Authority (IRDA), theinsuranceindustryinIndiaatpresentconsistsof24 generalinsurancecompaniesincludingspecialisedinsurers such as Export Credit Guarantee Corporation of India and the Agricultural Insurance Corporation of India, and 23life insurance companies. Ofthe 22 insurers who set up operations in life insurance after the industry was opened upfortheprivatesector,20arejointventureswithforeign companies. Similarly, of the 17 non-life insurers,including healthinsurersoperatingintheprivatesector,16arein collaboration with foreign partners.Thus, 36 insurance companies in the private sector are operating in collaborationwithwell-establishedforeigncompanies. Priortotheopeningupofinsurancefortheprivatesector, nonlifeproductswerelimitedandwereclassifiedonthe basisoftheirbeingregulatedbytariffsorotherwise.Those suchasfireinsurance,motorvehicleinsurance,engineering insurance and worker’s compensation came under tariff, andregulationwhileotherssuchasburglaryinsurance,and personal accident insurance did not. In addition, most specialised insurance products, such as race horse insurance,didnotfallundertariffregulation.

Aftertheopeningupofthesectortoprivateplayers,new productswereintroducedandtheseincludedproducts’ corporate cover, professional indemnity weatherinsurance,creditinsuranceandtravelinsurance.

liability, policies,

Someoftheimportantmilestonesinthelifeinsurance businessinIndiaare: 1818: Oriental Life Insurance Company, the first life insurancecompanyonIndiansoilstartedfunctioning. 1870:BombayMutualLifeAssuranceSociety,thefirstIndian lifeinsurancecompanystarteditsbusiness. 1912:TheIndianLifeAssuranceCompaniesActenactedas thefirststatutetoregulatethelifeinsurancebusiness. 1928: The Indian Insurance Companies Act enacted to enablethegovernmenttocollectstatisticalinformation aboutbothlifeandnon-lifeinsurancebusinesses. 1938:Earlierlegislationconsolidatedandamendedtobythe InsuranceActwiththeobjectiveofprotectingtheinterests of the insuringpublic. 1956: 245 Indian and foreign insurers and provident societiesaretakenoverbythecentralgovernmentand nationalised.LICformedbyanActofParliament,viz.LICAct, 1956,withacapitalcontributionofRs.5crorefromthe Government ofIndia. TheGeneralinsurancebusinessinIndia,ontheotherhand, cantraceitsrootstotheTritonInsuranceCompanyLtd.,the first general insurance company established in the year1850 inCalcuttabytheBritish.

Someoftheimportantmilestonesinthegeneralinsurance business in India are: 1907:TheIndianMercantileInsuranceLtd.setup,thefirst company to transact all classes of general insurance business. 1957:GeneralInsuranceCouncil,awingoftheInsurance AssociationofIndia,framesacodeofconductforensuring fairconductandsoundbusinesspractices. 1968:TheInsuranceActamendedtoregulateinvestments andsetminimumsolvencymarginsandtheTariffAdvisory Committee setup. 1972:TheGeneralInsuranceBusiness(Nationalisation)Act, 1972nationalised the general insurance business in India witheffectfrom1stJanuary1973. 107insurersamalgamatedandgroupedintofourcompanies viz.theNationalInsuranceCompanyLtd.,theNewIndia AssuranceCompanyLtd.,theOrientalInsuranceCompany Ltd. and the United India Insurance Company Ltd. GIC incorporatedasacompany. l. ThekeyplayersoftheIndianInsuranceIndustry FollowingaretheregisteredLifeinsurancePlayersinIndia: In PublicSector: Life Insurance Corporation (LIC) of India

In PrivateSector:

                     

BajajAllianzLifeInsuranceCompanyLimited BirlaSunLifeInsuranceCo.Ltd HDFCStandardlifeInsuranceCo.Ltd ICICIPrudentialLifeInsuranceCo.Ltd. INGVysyaLifeInsuranceCompanyLtd. LifeInsuranceCorporationofIndia MaxNewYorkLifeInsuranceCo.Ltd MetLifeIndiaInsuranceCompanyLtd. KotakMahindraOldMutualLifeInsuranceLimited SBILifeInsuranceCo.Ltd TataAIGLifeInsuranceCompanyLimited RelianceLifeInsuranceCompanyLimited. AvivaLifeInsuranceCo.IndiaPvt Ltd. ShriramLifeInsuranceCo,Ltd. SaharaIndiaLifeInsurance BhartiAXALifeInsurance FutureGeneraliLifeInsurance IDBIFortisLifeInsurance CanaraHSBCOrientalBankofCommerceLifeInsurance Religare LifeInsurance DLFPramericaLifeInsurance StarUnionDai-ichiLifeInsurance

FollowingarethekeyplayersoftheIndianNon-life InsuranceIndustry:

Public Players: National Insurance Company Limited, Oriental Insurance Limited, New India Assurance Company LimitedandUnitedIndiaInsuranceCompanyLimited.

Private Players :                  

BajajAllianzGeneralInsuranceCo.Ltd. ICICILombardGeneralInsuranceCo.Ltd. IFFCOTokioGeneralInsuranceCo.Ltd. RelianceGeneralInsuranceCo.Ltd. RoyalSundaramAllianceInsuranceCo.Ltd TataAIGGeneralInsuranceCo.Ltd. UnitedIndiaInsuranceCo.Ltd. CholamandalamMSGeneralInsuranceCo.Ltd. HDFCERGOGeneralInsuranceCo.Ltd. ExportCreditGuaranteeCorporationofIndiaLtd. AgricultureInsuranceCo.ofIndiaLtd. StarHealthandAlliedInsuranceCo.Ltd. ApolloMunichHealthInsuranceCo.Ltd. FutureGeneraliIndiaInsuranceCo.Ltd. UniversalSompoGeneralInsuranceCo.Ltd. ShriramGeneralInsuranceCo.Ltd. BhartiAXAGeneralInsuranceCo.Ltd. RahejaQBEGeneralInsuranceCo.Ltd.

FactorsContributingtoGrowthofIndianLife InsuranceIndustry

m.

Strong GDPgrowth CRISILResearchforecastsIndia’seconomytogrowat7.4% (inrealterms)infiscal2018,upfrom7.1%intheprevious fiscal, assuming normal monsoon and supported by improved consumption demand. Softer interest rates and inflationwill alsolikelyaidconsumption.Inthenextfiveyears,growth be ~8% annually. Faster growth in GDP translateintorisingincome,which,inturn,isfavourablefor growthinlifeinsurance.(Source:CRISILReport)

Trend in Per Capita GDP growth for India

should should

Increase inSavings

While GDP growth in India is projected to improve comparedwiththeprecedingfive-yearperiod,controlover inflation is another key structural positive. When the countrywitnessed23%deficientmonsooninfiscal2010,the Consumer Price Index linked (CPI) inflation had climbedto 12.4%. However, despite two successive deficient monsoons in2014and2015,CPIinflationaveraged6%infiscal2015 anddroppedto5%infiscals2016and2017.WeexpectCPI inflationtoremainstableataroundtheselevelsinfiscal 2018aswell.Overthelongtermtoo,theReserveBankof India(RBI)iscommittedtokeepinflationlowandrangebound.Lowerinflationgivesanimpetustooverallsavings, aspeoplecansavemore. Therefore,theincreasedfinancialsavings,coupledwiththe expectedincreaseintheshareofinsuranceasapercentage offinancialsavings,duetoasignificantimprovementin productpropositionanddeliverymechanisms,areexpected todrivegrowthforthelifeinsurancesector.

Share of financial savings to rise:

Theshareofinvestmentinlifeinsuranceasaproportionof financialsavingsreacheditspeakat26%infiscal2010,with growth driven by both linked and non-linked segments. However,withthedownturninthecapitalmarket,increasing inflation and regulatory changes, this share declined considerably between fiscals 2010 and 2014. There was a considerable revival post fiscal 2014, due to improving fundamentalsandpick-upinthesaleoflinkedproducts. RetailcreditgrewataCAGRof17%betweenfiscals2014and 2017,comparedto~13%CAGRinthepreviousthreeyears, reiterating positive fundamentals. Further, the savings in insurance products increased by ~10% on-year in fiscal 2016, ascomparedtoamere~4%increaseinbankdepositsduring theyear. Share of Life Insurance in Total Household FinancialSavings

Increasingawarenessamongruralpopulationtoincrease

geographicalreachandpenetration The share of new business premium from Maharashtra increasedfrom15%infiscal2011to18.7%infiscal2017.The shareofUttarPradeshandTamilNaduinindividualpremium

decreased80bpsand70bps,respectivelyduringtheperiod, whereastheshareofWestBengalwasstagnantat9.2%. Weexpectthegeographicalreachofplayerstoexpandwith the increase in bank branches in the hinterland, the government’s focus on financial inclusion, and increasing awareness of insurance with schemes such as thePradhan MantriJeevanJyotiBimaYojana. State-WiseDistributionofIndividualNewBusinessPremium

Increasing InsurablePopulation Currently,Indiaisoneofthenationswiththehighestyoung populations,withamedianageof28years.90%ofIndians will still be below the age of 60 by 2020 and 63% are expectedtobebetweentheageof15-59.Comparatively,the US,ChinaandBrazilhad74%,62%and78%ofthepopulation belowtheageof60(asof2012).Thenumberofindividuals intheageof25-49,whichisthetargetpopulationforthe industry, is increasing in India and would boostindustry growth.Alargeshareoftheworkingpopulation,coupled

with rapid urbanisation and rising affluence, is expectedto propelIndianlifeinsurancesectorgrowth.

India’s DemographicDividend:

Rise inurbanization Indiahasaverylowurbanizationrateascomparedtoits AsianpeerslikeChina,JapanandThailand.Theshareofthe urbanpopulationrosesteadilyfrom28.8%in2004toan estimated 33.5% in 2017. CRISIL Research expects urbanizationtoaccelerate,translatinginto2.0-2.5%CAGRin theurbanpopulationbetween2017and2022,compared with overall population growth of 1.2% during thesame period.Further,theincreaseinurbanizationwillalsoaidthe increaseinGDPpercapitaasalsosuggestedduringthe previous five years. Also, increasing urbanization will enhance financial literacy among consumers, thereby supportingthegrowthofthelifeinsuranceindustry. ComparingtheincreaseinurbanpopulationtoriseinGDP percapitaforIndiaanditsotherAsianpeersalsohighlights thestrongpositivecorrelationbetweenurbanization%and percapita.

GDP

Growth in Urbanization Rate and GDP Per Capita

Focus on Financial Inclusion Withafocusonfinancialinclusion,theUnionGovernment launchedthePradhanMantriJan-DhanYojana.Asmuchas 286millionaccountswereopenedunderthisschemeasof May30,2017,withtotaldepositsof₹ 643 billion.The inclusionofsomanypeopleinthefinancialsystemopens avenues for investments in insurance and other savings products. Concurrently, the government launched Pradhan MantriJeevanJyotiBimaYojanainMarch2015withtheaim ofprovidinglifecoveratanominalcosttoanyoneintheage groupof18-50havingabankaccount.Underthescheme,a lifeinsurancecoverof₹ 200,000isprovidedonpaymentof premiumof₹ 330perannum.Astheadoptionofinsurance coverunderthisschemegainstraction,sowilltheawareness aboutinsuranceasaproductanditsassociatedbenefits.

network based on a particular region’s business potential and implement customized regional strategies to address the requirements of local customers. We also plan to developandintroduceadditionalindividualproductstoadd toourproductportfolioof29individualproductsasofJune 30,2017.Further,weintendtodiversifyintootherstrategic business segments such as health by launching productsthat catertothisunderpenetratedsegment.Wewillcontinueto focusonfurthergrowingourcreditlifeprotectionbusiness offeringcoverageforloansbyworkingmorecloselywithour bancassurance partners and entering into strategic distribution arrangements with other financial services institutions.

Ensure profitablegrowth through balanced product portfolioandexpansivedistributionnetwork Wewillcontinuetofocusonensuringprofitabilityofour businessbymaintainingadiversifiedproductportfolio.We continue to undertake market assessment studies to strategicallyevaluateadditionalproductofferings.Aspartof our efforts to enhance our Value of New Business, Embedded Value and improve margins, our strategy is to further optimize our product portfolio by maintaininga balance between unit-linked, participating and non- participating products. We also intend to expand our protectionproductportfolio,withaparticularemphasison creditlifeprotectionproducts.Wealsointendtogradually reduceourfocusongroupproductsduetotheinherently competitivenatureofthisbusinessandthehighguarantee obligationsrelatedtosuchproducts.Wewillalsocontinue

toperiodicallyrevaluatepricingconsiderationsbasedOn

.

Weintendtocontinuetoleverageourstrongmulti-channel distribution network to ensure profitable growth. Our large bancassurance channel provides significant cross-selling opportunities with minimal distribution costs. In particular, wewillcontinuetofocusonleveragingStateBank’slarge branch network and customer base to identify and penetrate new markets. We also intend to focus on improving productivity levels of our bancasssurance channels.InFiscal2017,28,923CIFsinStateBankgenerated NewBusinessPremiumof₹ 42,074.51million,comparedto ₹ 21,152.93millioninFiscal2015by19,666CIFs.Wealso intendtoworkcloselywithournewbancassurancepartners PunjabandSindBankwith1,500branchesasofMarch31, 2017,primarilyinnorthIndia,andwithSouthIndianBank with850branchesasofMarch31,2017,primarilyinsouth India. We continue to actively identify additional bancassurance partners, and also intend to enter into strategic distribution arrangements with smallfinance banks, payment banks and various non-banking financial servicecompanies.Wecontinuetoimplementvarioussales forceautomationtools,tointegrateouroperatingprocesses withourbancassurancepartnerstoimproveproductivity andensureoperatingefficiencies.

We intend to continue to strategically grow a highly productive individual agent network, by recruiting additional agentsandsalesmanagerstosupportthem,focusingon regions and customer segments with significant business potential. We will also continue to improve our agent trainingsupport,toofferautomatedsalesforceactivity management tools, to provide them with leads and strategies and to redefine our rewards and recognition programs toensure

highproductivityratesandlowerturnoverinouragent workforce.

Wecontinuetoincreaseourfocusondirectsalesthrough our website and our customized mobile applications supportedbydedicatedcustomerserviceandcallcentres. We have developed certain low-cost products aimedat online sales. We intend to market and sell additional products online by customizing products to meet requirements of specific customer segments through our website.Weintendcontinuetoexploreopportunitiesto expandouroperationsinSouthAsiaincludinginNepaland Bangladeshandarecurrentlyintheprocessofobtaining regulatoryapprovalsforstartingoperationsinBahrain. Aspartofourstrategytofocusoncustomerservice,we have introduced an e-payment gateway and redeveloped ourcustomerself-serviceportal.Weshallincreaseourfocus ontargetingcustomersthroughsocialmediaanddigital platformssuchasmobileapplicationsandundertakedigital marketingcampaignsanddataanalyticstoimproveour brandequityandoursales. Enhancebrandequityandcontinuetofocusoncustomer satisfaction The insurance business is substantially dependent on reputation. In order to maintain our leadershipposition across various geographies and different customer segments, we continue to focus on further strengthening our brand by augmenting customer relationships, maintaining stakeholder expectations and improvingour

claimsmanagementprocesses.Wecontinuetobuildonour existing corporate culture and strengthen our image as a socially responsible insurance company through various corporate social responsibility and insurance awareness initiatives with the intent to pursue sustainable, value enhancinglongtermgrowthandprofitability.Ourstrategy istomaintainandenhanceourbrandvaluebyensuringbest inclassriskmanagementpracticesandimplementingglobal bestpractices.

We continue to focus on developing tailored products targeted at specific customer segments, and improve customerengagementandeaseoftransaction.Weintendto deployspecialisedteamswithinourvariousdistribution channels to identify, engage with and manage specific customersegments.Webelievespecialisedteamsfocused onspecificcustomersegmentswillenableustoincreasethe productivity of our distribution channels, meet specific customer segments and increase quality of customer experience. Our Mis-Selling Ratio was 0.48%, 0.29% and 0.20%,inFiscal2015,2016and2017,respectively,andwas thelowestamongthetopfiveprivatelifeinsurers(interms oftotalpremiuminFiscal2017)inIndiainFiscal2017and weintendtofurtherimproveourMis-SellingRatiothrough variousinitiatives,including,amongothermeasures,more stringent customer on-boarding welcome calls, emphasising afocusonqualityinoursalestrainingprogrammesforour frontline sales force, use of analytics and a risk-score approach.AcriticalaspectofourreducedMis-SellingRatio, improved Persistency Ratio and Surrender Ratio has been ourdedicationtoprovidingsuperiorcustomerservice.Our focus is to ensure delivery of superior customer value throughourproductandserviceoferingstosustainour

growth.Wehaveadedicatedcustomerengagementteam involvedincreatingvariouscustomizedinitiativestotarget different customer segments through ongoing awareness and wellness campaigns. We are currently working on customerengagementinitiativeswhichwebelievewillhelp usengagemoreinteractivelywithourexistingandpotential customers. We also provide specific training for our individualagentsandsalessupportteamsaswellastothe CIFsstationedatbranchesoperatedbyourbancassurance partnerstoimprovecustomerengagementandconsultation skills. We have developed mobile applications focused on trainingandintendtocontinuetoleverageourtechnology platformtoprovidebetterservicetoourcustomers.

Wecontinuetocultivateastrongcustomerserviceethos across all our customer interfaces, across our distribution channels and customer support services including ourcall centres.Ourcallcentresprovidecustomerswithanefficient meanstogainaccesstoinformationabouttheirinsurance policies.Weregularlyreviewoursalesprocessesandpolicy documentation to simplify and ensure transparency of operations.Wecontinuetoengagewithcustomersand reviseoperationalpoliciesandprocessestoensuresuperior customer satisfaction, including prompt grievance redressal. Wewillcontinuetofurtherstreamlineandautomateour customer interfaces through our website and digital platforms to make them user-friendly and allow for improvedeaseofaccess.

Leverage technology to improve operating efficienciesand support growth

WewillcontinuetoleverageourrobustITinfrastructureto furtherourstrategicobjectiveofdeliveringstrongcustomer serviceandhelpensurebusinessgrowth.Wecontinueto improve our sales processes and operational efficiencies through automation and digitization efforts to ensure increasedcustomerretention.Wecontinuouslyupgradeour IT infrastructure to reduce operating costs across our business processes including sourcing, claims management andclaimssettlement.Wehavealsoinitiatedmeasuresto upgrade our core policy management systems, and to introduce automated claims processing and settlement mechanisms. WehavemadesignificantinvestmentsinourITsystemsand infrastructure,includinginnovativeadditionssuchastheSBI Life– EasyAccessmobileapplicationthatprovidesproduct and policy related information to customers, and Connect Life, which allows sales personnel to select products, complete the application, pay the requisite premium and upload relevant documents from a tablet. We believe this allows for better interaction with customers throughmore user-friendly and improved interface and reduces turnaroundtime. Wehaveintegratedouroperatingsystemswiththoseof StateBankbranchestofurtherimprovetheefficiencyofour bancassurance channel. We have introduced digital sales supporttoolsthathighlightrequisitecustomerdemographic andindividualcustomerinformationtoourfrontlinestaffto

ensure increased productivity, superior customer service and improved customer retention. These digital sales support tools also assist our supervisory staff to focus onensuring effectivesupervisionofoursalesteams.Wearefurther optimising these digital sales support tools to improve productivity of our individual agents and ourother distributionchannels. We will continue to leverage technology for training programs for our employees and our frontline sales force. We will increasingly use data analytics based on ourlarge customerdatabasetogenerateeffectivesalesleadstoour front line sales team, improve persistency, cross-sell our productswithaspecificfocusonexistingcustomersofState Bankandalsofortherenewalandpaymentofpremium.We arealsofocusingoureffortsongeographicallymapping areastoidentify,andincreaseouroperationsinareaswith significantpotentialforsalesofourproducts.Asapartof ouroperations,wehaverecentlyintroducedroboticsdriven selfservice portals to facilitate various customer services moreefficiently.

CAPITAL STRUCTURE

n. ProductsProvided The life insurance sector is one of the fastest growing financerelatedsegmentsinIndia.Therearemanydifferent products,eachwithavarietyofofferings.Rightfromfuelling investmentneedstomeetingdifferentfinancialgoals,they comewithmanyobjectivesfortheinvestor.Hereareafew common types of covers, including whole life andterm insurancepolicy.

1.

EndowmentPolicy

Thereisasavingsquotientlinkedtosuchpolicies.They comewithaspecifiedmaturityperiod,asdecidedbythe insurer. On the occurrence of any unforeseen event ofthe death or permanent disability, during the tenure ofthe policy; the sum assured will be received by the said beneficiariestothepolicy.Iftheinsuredsurvivesthetermof thepolicy,theagreedmaturitybenefitsbecomepayable. 2.

TermInsurance

Terminsurancepolicyofferscoverageonlyforasetperiod oftime.Ontheoccurrenceofdeathorpermanentdisability duringthetenureoftheplan,thebeneficiarieswillbepaid benefitstocoverincomelossorunpaiddebt.Disabilitycan bebothpartialandtotal,dependingonthetypeofplan. However,iftheinsuredsurvivesthetermoftheplan,no suchbenefitsarepaid.

3.

MoneyorCashPlans

Inthesetypesofplans,aportionoftheagreedandpayable sum assured is returned to the insured person by the insurancecompany.Thispaymentismadeonaperiodical basis, in the form of a survival benefit. When the term expires,theoutstandingsumassuredispaidasamaturity benefit.However,liferiskiscoveredfortheentireamount oftheagreedsumassured,evenifaportionofthebenefits hasalreadybeenpaid. 4.

Whole LifeInsurance

Unlikeaterminsurancepolicy,wholelifeplansstrivetogive lifelong protection. Such cover comes with benefits,meaningyourfamilycancontinuetobefinancially stableafteryourdeath.Italsocomeswithmaturitybenefits, aftertheexpiryoftheterm.Mostpeopleusethistypeof policytocreateaninheritanceorestatefortheirchildren. 5.

you death

Children’sPolicies

Theseplanscanbetakeninthenameofthechildorthe parent.However,itisonlyforthebenefitofthechild.This helps parents mobilize finances when the child reaches a particularageorstageoflife.

6.

AnnuityPlans

Justlikeaterminsurancepolicy,thistypeofinsuranceaims at covering income loss. After retirement, an individual is cutofffromaregularsourceofincome,andanybenefits, like gratuity or provident funds, run the risk of getting exhaustedquickly.Pensionisamodelprovisionforsafeguardingretirement,asthebenefitislikearegularincome. So,itisbesttogetpensionplansinordertoensurefinancial independence afterretirement.

4.ULIP In the present times we are witnessing a serious global financialcrisisandeconomicmeltdownwhichstartedwiththe bankruptcyofLehmanBrother’s(USA).Thestockmarkets acrosstheworldarewitnessingaseverefallandtheIndian stockmarketisnoexception.Thedomesticstockmarkethas beenextremelyvolatileduringthelastfewmonthsleadingto growingconcernaboutwealtherosion.Ontheinsurancefront, theULIP,whichhasbeentorchbearerintermsofbusinessand customerattractionforthelastfewyears,isatthereceiving endwhichisobviouslybecauseofitshugeexposuretoequity marketwhencomparedwiththeconventionalbusiness.

Brief Introduction About The Unit Linked Product:

ULIP

acts as a long-term investment tool as well as an insurancepolicy.Thereturnsaredirectlylinkedtochangesin theunderlyinginvestments,andtheinvestmentriskisentirely borne by the policyholder. Therefore, unlike participating or nonparticipating products, a ULIP holder has to continuously monitortheperformanceofthepolicythroughnetassetvalue (NAV)releasedbythecompaniesdaily.Thepolicyholdershave theflexibilitytochoosetheproportionofequityanddebtin their investment portfolio, based on their risk profile,and switchescanalsobemade(permissibleswitchesdifferacross policies), based onthe customers assessment of market conditions in a tax-efficient manner.Customers can also choose the level of life cover, subject to minimum levels mandated byIRDAI. AUnitLinkedProductistypicallyacombinationofriskcover and an investment where the policyholder bears the investment risk. The Unit Linked policy has provided an alternativetotheconventionalpoliciestobothinsurerwhoare findingitincreasinglydifficulttomeettheguaranteedbenefits on their traditional policies and the policyholder who isin pursuitofhigherrealreturns.Thedynamicsofthecapital markethaveadirectbearingontheperformanceoftheULIPS.

KeyAdvantagesToTheInsurerAndThePolicyholder: Policyholder • Transparency AndFlexibility • DirectParticipationInTheAssetManagement • Expected Higher Return Than A Conventional Policy Apart From LifeCover Insurer • ShiftOfInvestmentRiskToThePolicyholder • LessCapitalAbsorbance(LessSolvencyCapital)AndHence Very CapitalEfficient Growth Of Unit Linked Business In India: India has seen a tremendousgrowthontheunitlinkedfrontovertherecent years. The growth has been fuelled by the boomingstock markets&lowerinterestrates.Beforetheintroductionofthe unit linked product, the prospects/policyholders who are interestedininvestinginstockmarketseitherhadtopurchase thestocksontheirownintheprimary/secondaryorinvestin mutualfunds.Withtheintroductionoftheunitlinkedproduct, theprospecthasanoptiontoinvestinthestockmarketvia purchaseofaunitlinkedlifeinsurancepolicyinadditiontothe lifeinsurancecover.Aunitlinkedpolicyscoresovermutual fundviataxadvantagesandlifecover(nowSIPscanofferlife coverasperrecentSEBIguidelines).Also,aspertherecent SEBIguidelinesexitsunderclosedendedschemesarenot permitted.

ThefirstULIPwaslaunchedinIndiain1971byUnitTrustof India (UTI). In 2005, Insurance Regulatory and Development Authority, now Insurance Regulatory and Development AuthorityofIndia(IRDAI)issuedmajorguidelinesforULIPs.

How itworks? Likeapremiumispaidforaninsurancepolicy,samewaya premiumispaidunderULIP.Thedifferenceliesinthepartthat apartofthepremiumpaidisutilizedtogiveinsurancecoverto thepolicyholderandtheremainingpartisinvestedinvarious equityanddebtschemes.Thepolicyholdercanselectbetween debtandequityorhecaninvestinamixtureoftwo.Justlike mutualfunds,themoneycollectedforinvestmentformsapool offundandthentheinvestmentisdone.

Key points of a Unit Linked Insurance Plan:  Unlike, Mutual Funds, a Unit Linked Insurance Plangive you a long-termplan.  ULIPallowsthepolicyholderstoswitchtheirinvestment betweenthefundslinkedtotheplan.Thisenablesthem tochangetheriskreturn.  Thereisaminimumlock-in-period,i.e.thepolicyholder willhavetostayintheplanforthatperiod.  Thoughhecanpartiallywithdrawfromthefundwith somechargesandconditions.  AllUnitLinkedPlansoffertaxbenefitsundersection80C.  Theinvestmentsmadearesubjecttorisksassociated withthecapitalmarkets.Thisinvestmentriskistobe bornebythepolicyholder.

SomeoftheULIPprovidersareLICofIndia,SBILife,HDFCLife, ICICIPrudential,KotakMahindraLife,etc.

Type ThereareavarietyofULIPplanstochoosefrombasedonthe investmentobjectivesoftheinvestor,hisriskappetiteaswell astheinvestmenthorizon.SomeULIPsplayitsafebyallocating alargerportionoftheinvestedcapitalindebtinstruments whileotherspurelyinvestinequity.Again,allthisistotally based on the type of ULIP chosen for investment and the investorpreferenceandriskappetite.

 Life InsuranceULIPs ALifeInsuranceULIPisaspecialtypeofinsuranceplan whichoffersboth,protectionforlifeandatthesametime acts as an investment plan. ULIPs have beengaining popularityfortheirdualroleactingasinsurancepolicy and as investment plan simultaneously. Life insurance ULIPplansareparticularlyusefulforpeoplewhowanta financiallysecuredfuture.Theseplansarealsousefulfor thosepeoplewhocannotaffordbothinvestmentand insuranceatthesametime. SomeofthelifeinsuranceULIPproductsinthepresent marketinclude: Aviva New LifeLine Bajaj Allianz New Unit Gain II HDFC Endowment Super Suvidha

Pension ULIPs Pensionplansaredesignedtoprovideannuityamountsin the future with regular payment of premiums in the present.Premiumspaidunderpensionplansareinvested inULIPs.ThesearealsocalledpensionULIPs.Pension ULIPsareverysimilarinnatureandoperationtoregular life insurance ULIP plans. In a pension ULIP plan, premiumspaidareinvestedinunits.Afterthecompletion ofthestipulatedtimeperiodofthepensionplan,unlike insurancewheretheamountispaidinlumpsum,annuity ispaidtothepolicyholdereitherinlumpsum,annually, halfyearlyormonthlyforlifetime. VariouspensionULIPplaninIndiainclude: OHDFCUnitLinkedPension O ICICI Life Time Super Pension O Birla Sun Life Flexi Secure Life Retirement Plan OMaxNewYorkLifeInsuranceSMARTInvestPension Plan OBajajAllianzLifeInsuranceNewUnitGainEasyPension Plus

Child ULIPs

Inorderthattheinvestmentwillincreaseitsvalue,one mustinvestinchildULIPinsurance.ULIPorUnitlinked Insurance Policies are increasing their popularity in the recenttimes.Theseareregardedashighriskhighreturn investmentsthatarespreadoverlongperiodsoftime. Eachofthesepoliciesdiffersintheirgrowthrate.So,one mustconsiderallaspectsbeforeinvestinginvariouschild ULIPplans.Thereisasignificantamountofflexibilityin childULIPpolicies.Aparentcaninvestinlumpsumorcan invest annually, half-yearly or monthly depending upon his/herfinancialstatusandpermeability. ChildULIPcomparisonisamustforparentswhowantto investfortheirchildren.Thisisbecausevariousinsurance companiesofferdifferentchildULIPplanswhichdifferin premiums,premiumwaiverandguaranteedamountafter thematurity.Insuchcondition,childULIPcomparisoncan derivethebestchildULIPsplan.

Some of the best child ULIPs plans in India include:  SmartStepsPlanfromMaxNewYorkLifeInsurance  RelianceSecureChildPlanfromRelianceLifeInsurance  Smart Kid New Unit Linked Regular Premium from ICICI Prudential LifeInsurance

ULIPS For Long Term Wealth Creation

ULIPsaretherightinsurancesolutionsforyouifyouare lookingforastrongwealthcreationpropositionalliedto acoreinsurancebenefit.Suchplansareidealforpeople whoareintheirlate20sandearly30sandbyinvestingin suchaplangettheflexibilityofusingittofundanyof their longterm financial goals such as purchase ofa house or funding their children’s education. The added element of life cover serves to make these plans a wholesomefinancialinvestmentoption. WealthCreationULIPscanbeprimarilyclassifiedas: O Single premium -Regular premium plan: Depending upon you needs & premium paying capacity youcaneitheroptforasinglepremiumplanwhereyou needtopaypremiumonlyonceduringthetermofentire policyorregularpremiumplanswhereyoucanpremium at a frequency chosen by you depending upon your convenience. O Life Stage based –Non life Stage based: Life Stage based ULIPs factor in the fact that your prioritiesdifferatdifferentlifestages&hencedistribute your money across equity & debt. Here the initial allocation is decided as per your age since age is a significant indicator of risk appetite. Such astrategy ensuresthattheassetallocationatalltimesisinsync withyourageandchangingfinancialneeds.

O Guarantee plans –Non-guarantee plans: Today there are wealth creation ULIPS which also offer guaranteed benefit. These plans are ideal insurance-cuminvestment option for customers who want to enjoythe potentiallyhigherreturns(overthelongterm)ofamarket linkedinstrument,butwithouttakinganymarketrisk.On theotherhandnonguaranteeplanscomeswithaninbuiltrangeoffundoptionstochoosefrom–rangingfrom aggressivefunds(Primarilyinvestedinequitieswiththe generalaimofcapitalappreciation)toconservativefunds (invested in cash, bank deposits and money market instrumentswithaimofcapitalpreservation)sothatyou candecidetoinvestyourmoneyinlinewithyourmarket outlook, time horizon and your investment preferences andneeds.

ULIPS for Heath Solution HealthULIPisarecentinnovationfromthehealth insurance industry. In a health ULIP part of your premiums are allocated for investment designed specificallytobuildahealthfundtomeetfuturehealth related expenses. It aims to create a health savings kittybyinvestinginalongtermflexiblesavingsplanwith multiple fund options. The health fund thus created allowsyoutoclaimforhealthrelatedexpensesofany kindandalsofundyourfuturehealthinsurancecharges. Youcanalsoavailoftaxbenefitonpremiumpaidu/s 80D.

FINDINGS I . Monthly income of the respondents: PARTICULARS

FREQUENCY

PERCENTAGE

Less than 10000 10000-20000

11 22

12.00 24.00

20000-30000

24

27.00

30000-40000 More than40000 TOTAL

18 15 90

20.00 17.00 100.00

Monthly income of respondents

17%

12%

<10000 10000-20000 20000-30000 30000-40000 >40000

24%

20%

27%

Factors

Count

Percentage

Short term Long term TOTAL

63 87 150

42.00 58.00 100.00

TERM 42% 58% SHORT TERM LONG TERM

II.

CustomerpreferringULIPVSTraditionalPlans

Factors

No.ofrespondents

Percentage

ULIP

13

65.00

Traditional Plans TOTAL

7 20

35.00 100.00

customerpreffers 35% 65% ULIP Traditional plans

III. SatisfactorylevelofcustomersonULIP

Factors

No.ofrespondents

Completely satisfied Satisfied Somewhatsatisfied Not at all satisfied TOTAL

0 10 2 1 13

Percentage 0 77.00 15.00 08.00 100.00

SatisfactorylevelofcustomersonULIP 8% 15%

77%

Satisfied Somewhat satisfied Not at all satisfied

RECOMMENDETIONS SBILiscomparativelyalargecompany.Heretheactivities ofSBILarepracticedinahighlystructured.SBILmay adoptcertainchangesregardingthefollowingissues.  Mostofthecompanies,whichmeancompetitorsof SBIL,arewellestablishedbecausetheyhavecome longtimeago.SoSBILshouldtakemoreadvertising program.  Mostofthecompanies,whichhavemanycustomer servicecentresbutSBILhavenotsufficientservice centre . So, SBIL should establish more service centres.  CustomersarepreferringULIPmoreagainstthe traditionalplansandtheyarealsosomewhatmore satisfiedwiththoseULIPschemes.Sothecompany should provide more facilities on ULIP toattract moreandmorecustomerstowardsthem.

Conclusion As for the researcher’s observation through the study researcherhasfoundoutthattheSBILisperformedaccording totheneedsofthesituationpolicy,insomecausesthereare strictandconfidentialpolicies,whileinsomeothercasesthere isnotmuchstructuredpolicy,butmoreorlesspracticesatSBIL hasdoneforthesakeoftheorganizationandthemanagers andemployeesworkinginit. SBILaimstoprovideefficient,consistentandcosteffective servicetoconsumers,needstocarryonitsreputationinthe coming years, the efficiency of the organization dependsnot onlyontheefficientemployeesbutalsoonmaintainingand developing their skills. Although SBIL has some limitation still the organizationis running its operation successfully and that indicates thatthe system is adequate enough to maintain the efficiency so,we canconcludethatSBILpracticesatisgoodenough,thoughnot a perfectone.

Bibliography  www.sbilife.co.in  www.wikipedia.com  www.irdai.gov.in