BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
INDEX
Sl.No. CONTENT PAGE NO
1 Executive summary 1
Researc! "et!#$#%#&y '
( C#m)a*y Pr#+i%e ,
' I*tr#$ucti#* t# t!e T#)ic 1
- A*a%ysis ,.
/ O0servati#*s 1..
, Su&&esti#*s 1.
1 C#*c%usi#* 1.(
2 Re+ere*ce 1.-
1. A**exure 1./
BABASAB PATIL Page 1
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
EXECUTIVE SUMMARY
T!e 0a*3i*& a*$ i*sura*ce i*$ustry !ave c!a*&e$ ra)i$%y i* t!e c!a*&i*& a*$
c!a%%e*&i*& ec#*#mic e*vir#*me*t t!r#u&! #ut t!e 4#r%$5 I* t!e c#m)etitive a*$
%i0era%i6e$ e*vir#*me*t every#*e is tryi*& t# $# 0etter t!a* #t!ers a*$ c#*se7ue*t%y
surviva% #+ t!e +ittest !as c#me i*t# e++ect5 I*sura*ce c#m)a*ies are a%s# t# 0e
c#m)etitive 0y cutti*& c#st a*$ servi*& i* a 0etter 4ay t# t!e cust#mers5 N#4 t!e time
!as c#me t# c!##se a*$ a$#)t a))r#)riate $istri0uti#* c!a**e% t!r#u&! 4!ic! t!e
i*sura*ce c#m)a*ies ca* &et t!e maximum 0e*e+it a*$ serve cust#mers i* ma*i+#%$e$
4ays5 "u%ti c!a**e% $istri0uti#* a*$ mar3eti*& #+ i*sura*ce )r#$ucts 4i%% 0e t!e smart
strate&y t# c#*ti*ue t# )%ay a* im)#rta*t r#%e i* $istri0uti#*8 a%ter*ative c!a**e%s %i3e
c#r)#rate a&e*ts 0r#3ers a*$ 0a*cassura*ce 4i%% )%ay a &reater r#%e i* $istri0uti#*5
O*e #+ t!e m#re rece*t exam)%es #+ +i*a*cia% $iversi+icati#* is 90a*cassura*ce:8 t!e term
&ive* t# t!e $istri0uti#* #+ i*sura*ce )r#$ucts t!r#u&! 0ra*c!es #r #t!er $istri0uti#*
c!a**e%s #+ t!e 0a*3s5 T!e c#*ce)t t!at #ri&i*ate$ i* Fra*ce8 *#4 c#*stitutes t!e
$#mi*a*t m#$e% i* a *um0er #+ Eur#)ea* a*$ #t!er c#u*tries a*$ t!e same is +ast
catc!i*& u) i* I*$ia as 4e%%5
SBI Li+e I*sura*ce C#m)a*y8 a ;#i*t ve*ture 0et4ee* SBI a*$ Car$i+ S5A58 a %ea$i*& %i+e
i*sura*ce c#m)a*y #+ Fra*ce8 is a )re$#mi*a*t )%ayer i* 0a*cassura*ce5 T!is )r#;ect
re)#rt &ives a* i$ea a0#ut “A study on Bancassuanc! at Stat! Ban" o# Ind$a% Goa&!s
'anc(% B!l)au*.+ I* t!is )r#;ect re)#rt a* e++#rt !as 0ee* ma$e t# u*$ersta*$ t!e
c#*ce)t #+ Ba*cassura*ce a*$ its )ractica% a))%ica0i%ity at State Ba*3 #+ I*$ia8 Be%&aum5
T!e stu$y a%s# i*c%u$es vari#us as)ects %i3e 4!ic! m#$e% #+ 0a*cassura*ce is a))%ie$ i*
State Ba*3 #+ I*$ia8 t!e vari#us i*$ivi$ua% a*$ &r#u) i*sura*ce )r#$ucts 4!ic! are
mar3ete$ t!r#u&! SBI8 t!e 0e*e+its #+ Ba*cassura*ce t# t!e 0a*38 RBI a*$ IRDA
&ui$e%i*es #* 0a*cassura*ce a*$ t!e eva%uati#* #+ t!e +uture )r#s)ects #+ 0a*cassura*ce
i* SBI5
exam)%es #+ i#*
BABASAB PATIL Page
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
But t!ere are c!a%%e*&es8 t!e m#st c#mm#* c!a%%e*&es t# success #+ 0a*cassura*ce are
)##r ma*)#4er ma*a&eme*t8 %ac3 #+ a sa%es cu%ture 4it!i* t!e 0a*38 i*su++icie*t )r#$uct
)r#m#ti#*s8 +ai%ure t# i*te&rate mar3eti*& )%a*s8 mar&i*a% $ata0ase ex)ertise8 )##r sa%es
c!a**e% %i*3a&es8 i*a$e7uate i*ce*tives8 resista*ce t# c!a*&e8 *e&ative attitu$e t#4ar$s
i*sura*ce a*$ u*4ie%$y mar3eti*& strate&y5 Eve* i*surers a*$ 0a*3s t!at seem i$ea%%y
suite$ +#r a 0a*cassura*ce )art*ers!i) ca* ru* i*t# )r#0%ems $uri*& im)%eme*tati#*5 O*e
m#re im)#rta*t #0stac%e i* $eve%#)me*t #+ 0a*cassura*ce i* I*$ia !as 0ee* a set #+
re&u%at#ry 0arriers5 S#me #+ t!ese !ave rece*t%y 0ee* c%eare$ 4it! t!e )assa&e #+ t!e
I*sura*ce s!#) 4!ere
m#rt&a&es8 savi*&s8 )e*si#*s a*$ i*sura*ce )r#$ucts 4i%% 0e avai%a0%e5
O's!&at$ons,
1= T!e ;#i*t ve*ture m#$e% #+ 0a*cassura*ce is a))%ie$ i* SBI5 SBI Li+e is t!e ;#i*t
ve*ture 0et4ee* SBI a*$ Car$i+ %i+e i*sura*ce c#m)a*y #+ Fra*ce5 SBI )r#vi$es
*et4#r38 Car$i++ )r#vi$es tec!*#%#&y5
= Ba*cassura*ce is 0e*e+icia% +#r t!e 0a*3s8 0ecause
i5 T!e c!a*ces #+ %#a* 0ec#mi*& N#* )er+#rmi*& assets 4i%% 0e re$uce$ as it
&ives security t# t!e %#a* am#u*t5
ii5 It re$uces t!e ris3 #+ %#a*s 0ec#mi*& $e0t %#a*s t# t!e 0a*35
iii5 It !e%)s t!e 0a*3 0y i*creasi*& t!e s3i%%s #+ t!e em)%#yees5
iv5 It i*creases t!e t#ta% #t!er i*c#me #+ t!e 0a*35
(= T!e )r#)#rti#* #+ t#ta% misce%%a*e#us i*c#me i* t#ta% i*c#me !as 0ee* i*crease$
a+ter t!e 0ra*c! t##3 u) t!e activity #+ cr#ss se%%i*&5
'= "a;#r )#rti#* #+ t!e em)%#yees !ave *#t 0ee* &ive* a*y trai*i*& +#r cr#ss se%%i*&5
-= Out #+ (. 0a*3 em)%#yees8 ,(5(? em)%#yees are i*v#%ve$ i* t!e activity #+
0a*cassura*ce5
/= Out #+ em)%#yees 4!# are i*v#%ve$ i* t!e activity #+ cr#ss se%%i*&8 2.52?
em)%#yees #)i*e t!at it is i*creasi*& t!eir s3i%%s5
BABASAB PATIL Page (
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
,= Cr#ss se%%i*& is a$va*ta&e#us t# t!e 0a*3 as 4!e* t4# cust#mer acc#u*ts are
c#m)are$ i5e5 #*e 4!# !as ta3e* 0a*cassura*ce 4it! a*#t!er cust#mer 4!# !as
*#t ta3e* 0a*cassura*ce8 t!e 0a*3 is m#re 0e*e+ite$ i*case #+ cust#mer 4!# !as
ta3e* 0a*cassura*ce5
Su))!st$ons,
1= Trai*i*& s!#u%$ 0e &ive* t# a%% t!e em)%#yees #+ t!e 0ra*c! 4it! res)ect t# cr#ss
se%%i*&5
= Ba*3s !ave 4it*esse$ a $ec%i*e i* mar&i*s i* t!eir c#re %e*$i*& 0usi*ess $ue t#
+a%%i*& i*terest rates5 I*sura*ce $istri0uti#* !e%)s t# i*crease t!e +ee 0ase$
ear*i*&s #+ 0a*3s t# a c#*si$era0%e exte*t5 S# t!e 0a*3 em)%#yees s!#u%$ try t#
i*crease t!e t#ta% #t!er i*c#me #+ t!e 0a*3 0y $#i*& cr#ss se%%i*&5
(= Ba*3 em)%#yees 4!# are i*v#%ve$ i* 0a*cassura*ce s!#u%$ 0e &ive* +u%%
3*#4%e$&e #+ t!e tar&et cust#mers5
'= I* #r$er t# attract m#re )#%icy !#%$ers8 t!e 0a*3 em)%#yees a*$ i*sura*ce a&e*ts
s!#u%$ )r#m)t%y atte*$ t# t!e e*7uiries #+ )#%icy!#%$ers5
-= Ba*3 s!#u%$ try t# +aci%itate #*%i*e a*$ i*ter*et )ayme*ts t#4ar$s i*sura*ce
)r#$ucts5
Conclus$on,
@it! re+ere*ce t# SBI8 0a*cassura*ce is &ai*i*& acce)ta*ce &ra$ua%%y5 Ba*3 is
c#*ver&i*& t#4ar$s a m#$e% #+ &%#0a% retai% +i*a*cia% i*stituti#* #++eri*& a 4i$e array #+
)r#$ucts creati*& a #*e st#)>s!#) 4!ere m#rt&a&es8 savi*&s8 )e*si#*s a*$ i*sura*ce
)r#$ucts 4i%% 0e avai%a0%e5 S#me #+ t!e re&u%at#ry issues *ee$ t# 0e a$$resse$
c#m)re!e*sive%y a*$ s#rte$ #ut )articu%ar%y 4it! res)ect t# c#m)etiti#* a*$ mar3et
structure )r#0%ems5 Aive* t!ese c!a*&es8 0a*cassura*ce a*$ c#%%a0#rati#* 0et4ee* 0a*3s
a*$ i*surers !as a %#*& 4ay t# &# i* I*$ia5
BABASAB PATIL Page '
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
RESEARC- MET-ODO.OGY
O'/!ct$&!s o# t(! Study,
15 T# u*$ersta*$ t!e c#*ce)t #+ Ba*cassura*ce a*$ its )ractica% a))%ica0i%ity at State
Ba*3 #+ I*$ia8 Be%&aum5
5 T# 3*#4 4!ic! m#$e% #+ Ba*cassura*ce is a))%ie$ i* State Ba*3 #+ I*$ia5
(5 T# stu$y t!e vari#us i*$ivi$ua% a*$ &r#u) i*sura*ce )r#$ucts 4!ic! are mar3ete$
t!r#u&! State Ba*3 #+ I*$ia5
'5 T# +i*$ #ut t!e 0e*e+its #+ Ba*cassura*ce t# t!e 0a*35
-5 T# stu$y t!e Reserve Ba*3 #+ I*$ia eye vie4 #+ i*sura*ce sect#r re+#rms
N# Date Re+#rms
1 Se)tem0er
12-/
I*c#r)#rati#* #+ LIC a*$ mer&er #+ '- )rivate %i+e i*surers8
*ati#*a%i6e$ i* Ea* 12-/5
Ea*uary 12,
Ea*uary 12,(
Ea*uary 12,'
Nati#*a%i6ati#* #+ &e*era% i*sura*ce sca%e i*$ustries i* a 4ay 4!ic! !a$ *#
)ara%%e% e%se4!ere5 But t!e t!ree 0a*3s 4ere ri&#r#us%y exc%u$e$ +r#m a*y 0usi*ess
i*v#%vi*& +#rei&* exc!a*&e5 N#t #*%y 4as suc! 0usi*ess c#*si$ere$ ris3y +#r t!ese 0a*3s8
4!ic! !e%$ &#ver*me*t $e)#sits8 it 4as a%s# +eare$ t!at t!ese 0a*3s e*;#yi*& &#ver*me*t
)atr#*a&e 4#u%$ #++er u*+air c#m)etiti#* t# t!e exc!a*&e 0a*3s 4!ic! !a$ 0y t!e*
arrive$ i* I*$ia5 T!is exc%usi#* c#*ti*ue$ ti%% t!e creati#* #+ t!e RBI i* 12(-5
Ban" o# Bo*'ay
P!s$d!ncy Ban"s o#
B!n)al
T!e )resi$e*cy Ba*3s #+ Be*&a%8 B#m0ay a*$ "a$ras 4it! t!eir ,. 0ra*c!es 4ere
mer&e$ i* 121 t# +#rm t!e Im)eria% Ba*3 #+ I*$ia5 T!e tria$ !a$ 0ee* tra*s+#rme$ i*t# a
m#*#%it! a*$ a &ia*t am#*& I*$ia* c#mmercia% 0a*3s !a$ emer&e$5 T!e *e4 0a*3 t##3
#* t!e tri)%e r#%e #+ a c#mmercia% 0a*38 a 0a*3erGs 0a*3 a*$ a 0a*3er t# t!e &#ver*me*t5
But t!is creati#* 4as )rece$e$ 0y years #+ $e%i0erati#*s #* t!e *ee$ +#r a GState Ba*3 #+
I*$iaG5 @!at eve*tua%%y emer&e$ 4as a G!a%+>4ay !#useG c#m0i*i*& t!e +u*cti#*s #+ a
c#mmercia% 0a*3 a*$ a 7uasi>ce*tra% 0a*35 T!e esta0%is!me*t #+ t!e Reserve Ba*3
simu%ta*e#us%y sa4 im)#rta*t ame*$me*ts 0ei*& ma$e t# t!e c#*stituti#* #+ t!e Im)eria%
Ba*3 c#*verti*& it i*t# a )ure%y c#mmercia% 0a*35 T!e ear%ier restricti#*s #* its 0usi*ess
4ere rem#ve$ a*$ t!e 0a*3 4as )ermitte$ t# u*$erta3e +#rei&* exc!a*&e 0usi*ess a*$
execut#r a*$ trustee 0usi*ess +#r t!e +irst time5
I*0!$al Ban"
T!e Im)eria% Ba*3 $uri*& t!e t!ree a*$ a !a%+ $eca$es #+ its existe*ce rec#r$e$ a*
im)ressive &r#4t! i* terms #+ #++ices8 reserves8 $e)#sits8 i*vestme*ts a*$ a$va*ces8 t!e
i*creases i* s#me cases am#u*ti*& t# m#re t!a* six>+#%$5 T!e +i*a*cia% status a*$
BABASAB PATIL Page 1-
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
security i*!erite$ +r#m its +#reru**ers *# $#u0t )r#vi$e$ a +irm a*$ $ura0%e )%at+#rm5
But t!e %#+ty tra$iti#*s #+ 0a*3i*& 4!ic! t!e Im)eria% Ba*3 c#*siste*t%y mai*tai*e$ a*$
t!e !i&! sta*$ar$ #+ i*te&rity it #0serve$ i* its #)erati#*s i*s)ire$ c#*+i$e*ce i* its
$e)#sit#rs t!at *# #t!er 0a*3 i* I*$ia c#u%$ )er!a)s t!e* e7ua%5 A%% t!ese e*a0%e$ t!e
Im)eria% Ba*3 t# ac7uire a )re>emi*e*t )#siti#* i* t!e I*$ia* 0a*3i*& i*$ustry a*$ a%s#
secure a vita% )%ace i* t!e c#u*tryGs ec#*#mic %i+e5
Sta*0 o# I*0!$al Ban" o# Ind$a
@!e* I*$ia attai*e$ +ree$#m8 t!e Im)eria% Ba*3 !a$ a ca)ita% 0ase )art*ere$ a*$
state>s)#*s#re$ 0a*3 0y ta3i*& #ver t!e Im)eria% Ba*3 #+ I*$ia8 a*$ i*te&rati*& 4it! it8
BABASAB PATIL Page 1/
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
t!e +#rmer state>#4*e$ #r state>ass#ciate 0a*3s5 A* act 4as acc#r$i*&%y )asse$ i*
Par%iame*t i* "ay 12-- a*$ t!e State Ba*3 #+ I*$ia 4as c#*stitute$ #* 1 Eu%y 12--5
"#re t!a* a 7uarter #+ t!e res#urces #+ t!e I*$ia* 0a*3i*& system t!us )asse$ u*$er t!e
$irect c#*tr#% #+ t!e State5 Later8 t!e State Ba*3 #+ I*$ia
ass#ciate$ 0a*3s as its su0si$iaries )r#$uct i**#vati#*8
$istri0uti#*8 cust#mer service a*$ i*vestme*ts5 I* t!e a&e #+ sti++ c#m)etiti#* *# #*e is
rea$y t# %##se its #4* )#ssessi#*5
BABASAB PATIL Page .
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
INTRODUCTION TO BANCASSURANCE
T!#u&! muc! a$# 4as ma$e a0#ut 0a*cassura*ce8 a* a%ter*ate c!a**e% t# !a43 ris3
)r#$ucts t!r#u&! 0a*3s8 t!e c!a**e% is yet t# )ic3 u) )ace as #+ t#$ay5 "#st #+ t!e
i*sura*ce c#m)a*ies !ave a%rea$y tie$ u) 4it! 0a*3s t# ex)%#re t!e )#te*tia% #+ t!e
c!a**e% t!at !as 0ee* a success st#ry i* Eur#)e a*$ %e&is%ati#*s are a%s# i* )%ace5
Ba*cassura*ce )rimari%y 0a*3s #* t!e re%ati#*s!i) t!e cust#mer !as $eve%#)e$ #ver a
)eri#$ #+ time 4it! t!e 0a*35 A*$ )us!i*& ris3 )r#$ucts t!r#u&! 0a*3s is a c#st>e++ective
a++air +#r a* i*sura*ce c#m)a*y c#m)are$ t# t!e a&e*t r#ute8 4!i%e8 +#r 0a*3s8
c#*si$eri*& t!e +a%%i*& i*terest rates8 +ee 0ase$ i*c#me c#mi*& i* at a mi*imum c#st is
m#re t!a* 4e%c#me5
T!e strate&y +#r usi*& t!e esta0%is!e$8 e*tre*c!e$ $istri0uti#* *et4#r3 +#r #*e )r#$uct t#
mar3et #t!er *e4 )r#$ucts !as %#*& existe$ i* t!e c#*sumer &##$s sect#r5 T!us t!e
*et4#r3s +#r s#a)s a*$ $eter&e*ts !ave 0ee* use$ 0y c#m)a*ies t# $istri0ute *e4%y
%au*c!e$ +##$ )r#$ucts8 t!e $istri0uti#* c!a**e% +#r Ra$#s !as 0ee* use$ t# mar3et
te%evisi#*s a*$ s# #*5 O+ c#urse8 t!e 0asic )remise +#r t!is 3i*$ #+ cr#ss se%%i*& is t!e +act
BABASAB PATIL Page 1
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
t!at c#m)a*ies 3ee) $iversi+yi*& t!eir )r#$uct )#rt+#%i#s8 usi*& esta0%is!e$ 9i*cum0e*t:
*et4#r3s t# )r#m#te a*$ $istri0ute *e4 )r#$uct %i*es5 Ba*3s8 t##8 !ave i* t!e rece*t )ast
a$#)te$ t!is strate&y 0#t! i* I*$ia as 4e%% as i*ter*ati#*a%%y5 T!ey !ave m#ve$ a4ay +r#m
t!e c%assica% m#$e% #+ $e)#sit ta3i*& a*$ cre$it $is0ursa% t!r#u&! t!eir 0ra*c! *et4#r3s
a*$ !ave 0e&u* t# #++er a 4i$e ra*&e #+ )r#$ucts a*$ services %i3e security 0r#3i*&
+aci%ities a*$ mutua% +u*$s5 T!is is t!e )!e*#me*#* #+ 9u*iversa% 0a*3i*&: t!at 0ui%$s #*
t!e )ri*ci)%e #+ %evera&i*& existi*& *et4#r3s t# 0r#a$e* )#rt+#%i# #++eri*&s5 C!a*&e i*
re&u%at#ry re&imes !as a%s# +aci%itate$ t!is $iversi+icati#*5
Ar#4i*& $isi*terme$iati#* 0y c#r)#rate 0#rr#4ers
A%t!#u&! 0a*3s a*$ i*sura*ce c#m)a*ies are yet t# exc!a*&e t!eir 4e$$i*& ri*&s
0a*cassura*ce is a%rea$y i* s#me +#rm i* I*$ia5 Ba*3s are se%%i*& )ers#*a% acci$e*t a*$
0a&&a&e i*sura*ce +#r its cre$it car$ mem0ers8 issue$ m#rt&a&e %i*3e$ i*sura*ce )r#$ucts
%i3e +ire8 m#t#r #r catt%e i*sura*ce t# t!eir cust#mers a*$ esta0%is!i*& +ace t# +ace
re%ati#*s!i) 4it! t!eir cust#mers 0y %evera&i*& t!eir existi*& ca)a0i%ities5 I* #r$er t#
im)%eme*t t!e 0a*cassura*ce m#$e% i* I*$ia a %#t #+ ste)s s!#u%$ 0e ta3e*>
a= Hi&! ca)ita% i*vestme*t i* t!e i*+rastructura% $eve%#)me*t )articu%ar%y i* IT a*$ Te%e
C#mmu*icati#*s 4i%% !ave t# 0e re7uire$5
0= A ca%% ce*tre 4i%% !ave t# 0e create$5
c= T#) )r#+essi#*a%s 4i%% !ave t# 0e !ire$5
$= RD D ce%% 4i%% !ave t# 0e create$ t# &e*erate *e4 i$eas a*$ )r#$ucts5
BABASAB PATIL Page -
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
A S@OT a*a%ysis is $#*e #* 0a*cassura*ce i* t!e c#*text #+ I*$ia5
St!n)t(s,>
I* a c#u*try %i3e I*$ia #+ #*e 0i%%i#* )e#)%e 4!ere s3y is t!e %imit5 T!ere is a vast
u*ta))e$ )#te*tia%s 4aiti*& +#r %i+e i*sura*ce )r#$ucts5 T!ere are m#re t!a* 2.. mi%%i#*
%ives 4aiti*& +#r %i+e c#ver8 .. mi%%i#* !#use !#%$ 4aiti*& +#r !#use!#%$ i*sura*ce
)#%icy5 "i%%i#*s #+ )e#)%e trave%i*& i* a*$ #ut #+ I*$ia are 4aiti*& +#r #verseas
me$ic%aim a*$ Trave% i*sura*ce )#%icies 4!#%e 4#r%$ is eyei*& #* t!e sec#*$ %ar&est
mi$$%e c%ass se&me*t a+ter C!i*a t# ta)5 Ot!er t!a* t!is t!ere is a !u&e )u%% #+ s3i%%e$
)r#+essi#*a%s t# re%#cate t!e 0a*cassura*ce ve*ture t# )r#vi$e *e4 )r#$uct t!r#u&! RDD
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BABASAB PATIL Page /
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
T(!ats,>
Success #+ 0a*cassura*ce ve*ture re7uires c!a*&e i* a))r#ac!8 t!i*3i*& a*$ 4#r3 cu%ture
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BABASAB PATIL Page (.
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
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Deci$e t!e i*vestme*t am#u*tC
Fre7ue*cy "i*imum Premium "aximum Premium
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BABASAB PATIL Page ('
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
Premium Assure$
Term M - t# 1.
years
- times a**ua%
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T#) U) Am#u*t5
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BABASAB PATIL Page (-
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
H#ri6#* II Pe*si#* is a sa+e a*$ a !ass%e +ree 4ay t# &et !i&! retur*sR H#ri6#* II Pe*si#*
c#mes 4it! t!e u*i7ue +eature #+ Aut#matic Asset A%%#cati#* 0y mea*s #+ 4!ic! y#u
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a&e 0et4ee* -. t# ,. years5 H#u ca* c!##se t# )ay eit!er si*&%e )remium #r )ay re&u%ar
BABASAB PATIL Page (,
A&e Ar#u) 11>(- A&e Ar#u) (/>'- A&e Ar#u) '/>/.
"i* - times a**ua%i6e$ )remium
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BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
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? O)ti#* I Pure Pe*si#* P%a* /-=
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F#r si*&%e )remium m#$eC
F#r re&u%ar )remium m#$eC
BABASAB PATIL Page (1
A&e at e*try Sum Assure$
11>(- 1- ? #+ si*&%e )remium su0;ect t# maximum SA #+ Rs5 1. %acs
(/>'- 1- ? #+ si*&%e )remium su0;ect t# maximum SA #+ Rs5 -%acs
'/>/. 1- ? #+ si*&%e )remium su0;ect t# maximum SA #+ Rs5 15 %acs
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
Be*e+itsC
Deat! Be*e+itC
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va%ue 4i%% 0e )ai$ i* %um) sum t# *#mi*ee5 I+ y#u #)t +#r #)ti#* IC Pure Pe*si#*
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sum t# *#mi*ee5 Auara*tee$ a$$iti#*s 0y 4ay #+ +ree a%%#cati#* #+ u*its t#
i*crease y#ur retireme*t 3itty5
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a*$ +%exi0i%ity5 H#u ca* ta3e u) t# #*e t!ir$ #+ t!e +u*$ va%ue i* %um) sum5
• Duri*& A**uity P!aseC Ba%a*ce am#u*t !as t# 0e use$ t# )urc!ase a**uity5 T!e
rate at 4!ic! t!e am#u*t at vesti*& $ate 4i%% 0e c#*verte$ t# a* a**uity is *#t
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re%eva*t a**uity #)ti#* at t!e vesti*& $ate5
• Tax 0e*e+itC Save tax uKs 1. CCC A&e at E*try
BABASAB PATIL Page (2
A&e at e*try Sum Assure$
11>(- - #r 1. times +irst a**ua%i6e$ )remium su0;ect t# maximum SA #+
Rs51. La3!s
(/>'- - #r 1. times +irst a**ua%i6e$ )remium su0;ect t# maximum SA #+
Rs5- La3!s
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"i*imum Hears "aximum Hears
- Hears - Hears
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
@!# ca* 0uy t!is )r#$uctJ
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y#ur %i+e5 H#u 4i%% !ave t# retire +r#m 4#r35 I* t!e )#st retireme*t )eri#$ y#u !ave %#t #+
time +#r y#urse%+5 H#u 4#u%$ %i3e t# $# t!i*&s y#u !ave *#t $#*e 4!i%e y#u 4ere
4#r3i*&5 H#u *ee$ t# !ave a c#m)re!e*sive )%a* t# meet y#ur )#st retireme*t +i*a*cia%
*ee$s e*suri*& c#m)%ete )eace #+ mi*$5 T!is is a Pe*si#* )r#$uct5 I+ y#u are i* t!e a&e
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)remium8 su0;ect t# )ayme*t #+ ris3 )remium +#r t!e +uture5
Tax Be*e+itsC
• F#r Em)%#yerC T!e i*itia% a*$ A**ua% c#*tri0uti#*s ma$e t!r#u&! a* a))r#ve$
Aratuity trust ca* 0e c%aime$ as 0usi*ess ex)e*$iture as )er t!e )r#visi#*s u*$er
secti#* (/ year%y #r Hear%y i*sta%%me*ts5
"i*imum Sum Assure$C Rs51...K>
Arace Peri#$C A &race )eri#$ #+ (. $ays is avai%a0%e +#r a%% )remium m#$es5 F#r "#*t!%y
m#$e it is 1- $ays5 F#r F#rma% &r#u)s8 i+ $eat! c%aim arises $uri*& t!e &race )eri#$ t!e
c%aim 4i%% 0e )ai$ su0;ect t# c%aim i*vesti&ati#* a*$ ru%es a+ter $e$ucti#* #+ $ue a*$
u*)ai$ )remium su0;ect t# re*e4a% #+ master )#%icy5 F#r I*+#rma% &r#u)s8 i+ $eat! c%aim
arises $uri*& t!e &race )eri#$ t!e c%aim 4i%% 0e )ai$ su0;ect t# c%aim i*vesti&ati#* a*$
ru%es a+ter $e$ucti#* #+ $ue a*$ u*)ai$ +uture )remium +#r t!e i*$ivi$ua% mem0er5
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#+ rei*stateme*t5
Suici$e Exc%usi#*C N# Suici$e exc%usi#* +#r 0asic %i+e c#ver5 Suici$e c%ause is a))%ica0%e
+#r t!e S)#use C#ver #*%y8 i* case t!e #)ti#* !as 0ee* avai%e$5
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20 &0.& &0.& &0.&
2 &.1 &.1 100.0
22 100.0 100.0
YES
NO
Total
Valid
Frequency Percent Valid Percent
u!ulati"e
Percent
BABASAB PATIL Page 1
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
2.00 # &.1$
20.00 # &0.&$
NO
YES
INTERPRETATION,
? Out #+ em)%#yees8 2.52? em)%#yees t#%$ t!at 0a*cassura*ce is
i*creasi*& t!e t#ta% #t!er i*c#me #+ t!e 0a*3 a*$ remai*i*& 251?
em)%#yees t#%$ t!at it is *#t i*creasi*& t!e t#ta% #t!er i*c#me #+ t!e
0a*35
? It is #0serve$ t!at8 ma;#r )#rti#* #+ t!e em)%#yees t#%$ t!at
0a*cassura*ce is i*creasi*& t!e t#ta% #t!er i*c#me #+ t!e 0a*35
,5 I* y#ur #)i*i#*8 is t!is activity u)s *ee$ t# $eve%#) i**#vative )r#$ucts a*$ services rat!er t!a* $e)e*$
#* t!e tra$iti#*a% met!#$s5 T!e 3i*$s #+ )r#$ucts t!e 0a*3s 4#u%$ 0e a%%#4e$ t#
se%% are a*#t!er ma;#r issue5 F#r i*sta*ce8 a c#m)%ex u*it>%i*3e$ %i+e i*sura*ce
)r#$uct is 0etter s#%$ t!r#u&! 0r#3ers #r a&e*ts8 4!i%e a sta*$ar$ term )r#$uct #r
BABASAB PATIL Page 21
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
sim)%e )r#$ucts %i3e aut# i*sura*ce8 !#me %#a* a*$ acci$e*t i*sura*ce c#ver ca*
0e !a*$%e$ 0y 0a*3 0ra*c!es5
5 T!ere *ee$s t# 0e c%arity #* t!e #)erati#*a% activities #+ t!e 0a*cassura*ce i5e58
4!# 4i%% $# t!e 0ra*$i*&8 4i%% t!e i*sura*ce c#m)a*y )re+er t# )%ace a )ers#* at
t!e 0a*3 0ra*c!8 #r 4i%% t!e 0a*3 0ra*c! trai* a*$ )ut u) #*e #+ its #4* )e#)%e8
remu*erati#* #+ t!ese )e#)%e5
(5 Eve* t!#u&! t!e 0a*3s are i* )ers#*a% c#*tact 4it! t!eir c%ie*ts8 a !i&! $e&ree #+
)r#active mar3eti*& a*$ s3i%% is re7uire$ t# se%% t!e i*sura*ce )r#$ucts5 T!is ca*
0e a$$resse$ t!r#u&! )r#)er trai*i*&5
'5 T!ere are !a6ar$s #+ $irect c#m)etiti#* t# c#*ve*ti#*a% 0a*3i*& )r#$ucts5 Ba*3
)ers#**e% may 0ec#me resista*t t# se%% i*sura*ce )r#$ucts si*ce t!ey mi&!t t!i*3
t!ey 4#u%$ 0ec#me re$u*$a*t i+ savi*&s 4ere $iverte$ +r#m 0a*3s t# t!eir
i*sura*ce su0si$iaries5
@it! t!e +i*a*cia% re+#rms a*$ tec!*#%#&ica% rev#%uti#* em0raci*& t!e +i*a*cia% system8
t!ere !as 0ee* a &reat $ea% #+ +%exi0i%ity i* t!e mi*$ set #+ )e#)%e t# acce)t c!a*&e5 T!e
a0#ve #ut%i*e$ )r#0%ems *ee$ *#t8 !#4ever8 $eter t!e 0a*3i*& sect#r t# em0ar3 #*
0a*cassura*ce as a*y +#rm #+ resista*ce +r#m t!e 0a*3 em)%#yees c#u%$ 0e tac3%e$ 0y
$evisi*& a* a))r#)riate i*ce*tive system c#mme*surate 4it! i*te*sive trai*i*& t# t!e
+r#*t%i*e 0a*3 sta++5
1actos t(at a00!a to '! c$t$cal #o t(! succ!ss o# 'ancassuanc!,
15 Strate&ies c#*siste*t 4it! t!e 0a*3Gs visi#*8 3*#4%e$&e #+ tar&et cust#mersG *ee$s8
$e+i*e$ sa%es )r#cess +#r i*tr#$uci*& i*sura*ce services8 sim)%e yet c#m)%ete
)r#$uct #++eri*&s8 str#*& service $e%ivery mec!a*ism8 7ua%ity a$mi*istrati#*8
sy*c!r#*i6e$ )%a**i*& acr#ss a%% 0usi*ess %i*es a*$ su0si$iaries8 c#m)%ete
i*te&rati#* #+ i*sura*ce 4it! #t!er 0a*3 )r#$ucts a*$ services8 exte*sive a*$
BABASAB PATIL Page 22
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
!i&!>7ua%ity trai*i*&8 sa%es ma*a&eme*t trac3i*& system +#r re)#rti*& #* a&e*tsG
time a*$ resu%ts #+ 0a*3 re+erra%s a*$ re%eva*t a*$ +%exi0%e $ata0ase systems5
5 A*#t!er )#i*t is t!e !a*$%i*& #+ cust#mers5 @it! cust#mer a4are*ess %eve%s
i*creasi*&8 t!ey are $ema*$i*& &reater c#*ve*ie*ce i* +i*a*cia% services5
(5 T!e emer&e*ce #+ rem#te $istri0uti#* c!a**e%s8 suc! as PC 0a*3i*& a*$ I*ter*et>
0a*3i*&8 4#u%$ !am)er t!e $istri0uti#* #+ i*sura*ce )r#$ucts t!r#u&! 0a*3s5
'5 T!e emer&e*ce #+ *e4er $istri0uti#* c!a**e%s see3i*& a mar3et s!are i* t!e
*et4#r35
OBSERVATIONS
1= Ba*cassura*ce is t!e )r#cess #+ se%%i*& i*sura*ce )r#$ucts t!r#u&! a 0a*3:s
*et4#r35
BABASAB PATIL Page 1..
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
= T!e ;#i*t ve*ture m#$e% #+ 0a*cassura*ce is a))%ie$ i* SBI5 SBI Li+e is t!e ;#i*t
ve*ture 0et4ee* SBI a*$ Car$i+ %i+e i*sura*ce c#m)a*y #+ Fra*ce5 SBI )r#vi$es
*et4#r38 Car$i++ )r#vi$es tec!*#%#&y5
(= T!ere are vari#us i*$ivi$ua% a*$ &r#u) i*sura*ce )r#$ucts mar3ete$ t!r#u&! SBI
tar&eti*& $i++ere*t &r#u)s #+ cust#mers5
'= Ba*cassura*ce is 0e*e+icia% +#r t!e 0a*3s8 0ecause
i5 It !e%)s t!e 0a*3 0y i*creasi*& t!e s3i%%s #+ t!e em)%#yees5
ii5 It re$uces t!e ris3 #+ %#a* 0ec#mi*& $e0t %#a* +#r t!e 0a*35
iii5 N#* )er+#rmi*& assets 4i%% 0e re$uce$ as it &ives security t# t!e %#a*
am#u*t5
iv5 It i*creases t!e t#ta% #t!er i*c#me #+ t!e 0a*35
-= As )er t!e tre*$ %i*e8 t!e t#ta% i*c#me !as i*crease$ a+ter t!e 0ra*c! t##3 u) t!e
activity #+ cr#ss se%%i*& a*$ a%s# t!ere is a* i*crease i* t!e t#ta% misce%%a*e#us
i*c#me5
/= T!e )r#)#rti#* #+ t#ta% misce%%a*e#us i*c#me i* t#ta% i*c#me !as 0ee* i*crease$
a+ter t!e 0ra*c! t##3 u) t!e activity #+ cr#ss se%%i*&5
,= T!e ? i*crease i* t#ta% i*c#me i* t!e year ../ is %#4 0ecause a$va*ces !ave *#t
0ee* i*crease$ as )er ex)ectati#*s5
1= T!e c#*tri0uti#* #+ c#mmissi#* +r#m cr#ss se%%i*& t# t!e t#ta% i*c#me is %ess5
2= T!e )erce*ta&e #+ c#mmissi#* +r#m cr#ss se%%i*& t# t#ta% misce%%a*e#us i*c#me is
i*creasi*&5
1.= "a;#r )#rti#* #+ t!e em)%#yees !ave *#t 0ee* &ive* a*y trai*i*& +#r cr#ss se%%i*&5
11= Out #+ (. em)%#yees8 ,(5(? em)%#yees are i*v#%ve$ i* t!e activity #+
0a*cassura*ce5
1= Out #+ em)%#yees 4!# are i*v#%ve$ i* t!e activity #+ cr#ss se%%i*&8 2.52?
em)%#yees #)i*e t!at it is i*creasi*& t!eir s3i%%s5
1(= Cr#ss se%%i*& is a$va*ta&e#us t# t!e 0a*38 4!e* t4# cust#mer acc#u*ts are
c#m)are$ i5e5 #*e 4!# !as ta3e* 0a*cassura*ce 4it! a*#t!er cust#mer 4!# !as
*#t ta3e* 0a*cassura*ceB t!e 0a*3 is m#re 0e*e+ite$ i*case #+ cust#mer 4!# !as
ta3e* 0a*cassura*ce5
1'= SBI is +#%%#4i*& RBI a*$ IRDA &ui$e%i*es5
BABASAB PATIL Page 1.1
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
1-= T!e exte*sive )rese*ce #+ 0a*3 0ra*c!es8 t!e str#*& &r#4t! #+ i*sura*ce $ema*$
i* t!e rura% re&i#*s a*$ c%#se*ess #+ t!e 0a*3 sta++ 4it! t!e cust#mers 4i%% ai$
0a*cassura*ce t# &r#4 i* t!e +uture5
1/= As )er IRDA a**ua% re)#rt ..->./8 SBI Li+e I*sura*ce C#m)a*y !as ''1(
ur0a* Li+e I*sura*ce a&e*ts a*$ /22 rura% Li+e I*sura*ce a&e*ts5
1,= "#st #+ t!e cust#mers 4!# !ave ta3e* 0a*cassura*ce are a0#ve (- years #+ a&e5
SUGGESTIONS
1= Trai*i*& s!#u%$ 0e &ive* t# a%% t!e em)%#yees #+ t!e 0ra*c! 4it! res)ect t# cr#ss
se%%i*&5
BABASAB PATIL Page 1.
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
= Ba*3s !ave 4it*esse$ a $ec%i*e i* mar&i*s i* t!eir c#re %e*$i*& 0usi*ess $ue t#
+a%%i*& i*terest rates5 I*sura*ce $istri0uti#* !e%)s t# i*crease t!e +ee 0ase$
ear*i*&s #+ 0a*3s t# a c#*si$era0%e exte*t5 S# t!e 0a*3 em)%#yees s!#u%$ try t#
i*crease t!e t#ta% #t!er i*c#me #+ t!e 0a*3 0y $#i*& cr#ss se%%i*&5
(= Ba*3 em)%#yees s!#u%$ 0e m#tivate$ t# ta3e t!e trai*i*& 0y s)eci+yi*& t!e
c#mmissi#* am#u*t 4!ic! t!ey are &#i*& t# &et a+ter cr#ss se%%i*&5
'= Ba*3 em)%#yees 4!# are i*v#%ve$ i* 0a*cassura*ce s!#u%$ 0e &ive* +u%%
3*#4%e$&e #+ t!e tar&et cust#mers5
-= T!ey s!#u%$ a%s# 0e &ive* trai*i*& re&ar$i*& a%% )r#$uct #++eri*&s 4it! t!e 7ua%ity
service $e%ivery a*$ a$mi*istrati#*5
/= Ba*3 s!#u%$ try t# +aci%itate #*%i*e a*$ i*ter*et )ayme*ts t#4ar$s i*sura*ce
)r#$ucts5
,= I* #r$er t# attract m#re )#%icy !#%$ers8 t!e 0a*3 em)%#yees a*$ i*sura*ce a&e*ts
s!#u%$ )r#m)t%y atte*$ t# t!e e*7uiries #+ )#%icy!#%$ers5
1= A%% t!e )#%icy!#%$ers 4!# came u*$er tax 0rac3et s!#u%$ 0e )r#vi$e$ 4it! t!e
*ecessary $#cume*ts +#r c%aimi*& t!e tax c#*cessi#*5
2= Ba*3 sta++ s!#u%$ ma3e a* e++#rt t# e$ucate t!e )u0%ic a0#ut t!e s#cia% security
)r#vi$e$ 0y t!e i*sura*ce )#%icies5
1.= SBI Li+e a4are*ess cam)ai&* ca* 0e #r&a*i6e$ i* rura% a*$ semi ur0a* areas i*
#r$er t# e*c#ura&e sma%% e*tre)re*eurs t# )urc!ase %i+e i*sura*ce )#%icies5
11= I* #r$er t# e*c#ura&e %#4 a&e &r#u)s t# ta3e %i+e i*sura*ce )#%icies8 SBI Li+e may
c#me +#r4ar$ 4it! *#ve% a*$ i**#vative sc!emes at a %#4 )remium5
CONC.USION
@it! !u&e u*ta))e$ mar3et8 i*sura*ce sect#r is %i3e%y t# 4it*ess a %#t #+ activity > 0e it
)r#$uct i**#vati#* #r $istri0uti#* c!a**e% mix5 Ba*cassura*ce8 t!e emer&i*& $istri0uti#*
c!a**e% +#r t!e i*surers8 4i%% !ave a %ar&e im)act #* I*$ia* +i*a*cia% services i*$ustry5
BABASAB PATIL Page 1.(
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
Tra$iti#*a% met!#$s #+ $istri0uti*& +i*a*cia% services 4#u%$ 0e c!a%%e*&e$ a*$
i**#vative8 cust#mi6e$ )r#$ucts 4#u%$ emer&e5
Ba*3s 4i%% 0ri*& i* cust#mer $ata0ase8 %evera&e t!eir *ame rec#&*iti#* a*$ re)utati#* at
0#t! %#ca% a*$ re&i#*a% %eve%s8 ma3e use #+ t!e )ers#*a% c#*tact 4it! t!eir c%ie*ts8 4!ic! a
*e4 e*tra*t ca**#t8 as t!ey are *e4 t# t!e i*$ustry5 I* cust#mer )#i*t #+ vie48 a )%et!#ra
#+ )r#$ucts 4#u%$ 0e avai%a0%e t# !im5 "#re cust#mi6e$ )r#$ucts 4#u%$ c#me i*t#
existe*ce a*$ t!at t## a%% 4it!i* !a*$s reac!5 Success #+ t!e 0a*cassura*ce 4#u%$ m#st%y
$e)e*$ #* !#4 4e%% i*surers a*$ 0a*3s u*$ersta*$ eac! #t!erGs 0usi*esses a*$ sei6e t!e
#))#rtu*ities )rese*te$8 4ee$i*& #ut $i++ere*ces t!at are %i3e%y t# cr#) u)5
Ba*cassura*ce !as $eve%#)e$ its +#rm &ra$ua%%y 4!ere 0a*3s at +irst $# *#t carry ris3s
a*$ $istri0ute i*sura*ce )r#$ucts +#r a +ee a*$ )r#$uct $eve%#)me*t is %e+t t# i*sura*ce
c#m)a*y5 But &ra$ua%%y 0a*3s !ave assume$ ris3s re&ar$i*& $istri0uti#* assumi*& +u%%
res)#*si0i%ity5 But t!e )r#)er im)%eme*tati#* #+ 0a*cassura*ce is sti%% +aci*& s#me
)r#0%ems suc! as8 )##r ma*)#4er 4it! i* t!e 0a*3s8 $etac!me*t #+ 0ra*c! ma*a&er8
i*su++icie*t )r#$uct )r#m#ti#*8 ma*a&eria% $ata0ase ex)ertise8 i*a$e7uate i*ce*tives8
*e&ative attitu$e t#4ar$s i*sura*ce etc5 I* #r$er t# &et t!e +u%% 0e*e+it #+ it t!e +#%%#4i*&
ste)s s!#u%$ 0e ta3e*C>
i= Service $e%ivery mec!a*ism s!#u%$ 0e stre*&t!e*e$5
ii= K*#4%e$&e #+ tar&et cust#mer *ee$s s!#u%$ 0e $eve%#)e$5
iii= Exte*sive a*$ !i&! 7ua%ity trai*i*& s!#u%$ 0e e*sure$5
iv= Strate&ies c#*siste*t 4it! t!e 0a*3s visi#* s!#u%$ 0e $eve%#)e$5
v= Ba*3Gs $ata 0ase system s!#u%$ 0e ma$e +%exi0%e t# c#)e 4it! t!e c!a*&e5
S# #0servi*& t!e )r#&ress i* I*$ia8 )articu%ar%y 4it! re+ere*ce t# SBI8 0a*cassura*ce is
&ai*i*& acce)ta*ce &ra$ua%%y5 Ba*3 is c#*ver&i*& t#4ar$s a m#$e% #+ &%#0a% retai%
+i*a*cia% i*stituti#* #++eri*& a 4i$e array #+ )r#$ucts creati*& a #*e st#)>s!#) 4!ere
m#rt&a&es8 savi*&s8 )e*si#*s a*$ i*sura*ce )r#$ucts 4i%% 0e avai%a0%e5
BABASAB PATIL Page 1.'
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
T!ere are c#sts ass#ciate$ 4it! setti*& u) a success+u% 0a*cassura*ce *et4#r35 T!e
)r#)er trai*i*& #+ 0a*3 )ers#**e% t# u*$ersta*$ a*$ mar3et i*sura*ce sc!emes is vita% t#
t!e success #+ t!ese ve*tures5 T!ere is a%s# a *ee$ t# i*vest exte*sive%y i* IT a*$ #t!er
su))#rt systems t!at 4#u%$ )r#vi$e a* i*te&rate$ 90ac3>e*$: +#r 0a*3i*& a*$ i*sura*ce
services5 Re&u%at#ry issues *ee$ t# 0e a$$resse$ c#m)re!e*sive%y a*$ s#rte$ #ut
)articu%ar%y 4it! res)ect t# c#m)etiti#* a*$ mar3et structure )r#0%ems5 Aive* t!ese
c!a*&es8 0a*cassura*ce a*$ c#%%a0#rati#* 0et4ee* 0a*3s a*$ i*surers !as a %#*& 4ay t#
&# i* I*$ia5
RE1ERENCES
N5D5Ka)##r8 E%eme*ts #+ "erca*ti%e La48 La4 #+ I*sura*ce8 Pa&e Num0er '->
''(5
BABASAB PATIL Page 1.-
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
@e0sitesC
? 4445state0a*3#+i*$ia5c#m
? 4445s0i%i+e5c#5i*
? 4445r0i5#r&5i*
? 4445ir$a5&#v5i*
? 4445&##&%e5c#m
Artic%esC
? Ba*cassura*ce i* I*$ia S Ea*ar$!a* A Nai3
? SBI Li+eC T!e *e4 i*sura*ce 0e!em#t! S Fi$yut Kumar T
? Ba*cassura*ce S A0!ee3 Barua
? Ba*cassura*ceC T!e m#st c!a%%e*&i*& i*sura*ce Distri0uti#* c!a**e% 4it!
S)ecia% re+ere*ce t# SBI > Amites! C!#4$!ury @
ANNEXURE
:u!st$onna$! to 'an" sta##
15 Pers#*a% DataC
BABASAB PATIL Page 1./
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
NameC
Desi&*ati#*C
5 Are y#u i*v#%ve$ i* t!e activity #+ 0a*cassura*ceJ
Hes [ \ N# [ \
se%%i*&
INDEX
Sl.No. CONTENT PAGE NO
1 Executive summary 1
Researc! "et!#$#%#&y '
( C#m)a*y Pr#+i%e ,
' I*tr#$ucti#* t# t!e T#)ic 1
- A*a%ysis ,.
/ O0servati#*s 1..
, Su&&esti#*s 1.
1 C#*c%usi#* 1.(
2 Re+ere*ce 1.-
1. A**exure 1./
BABASAB PATIL Page 1
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
EXECUTIVE SUMMARY
T!e 0a*3i*& a*$ i*sura*ce i*$ustry !ave c!a*&e$ ra)i$%y i* t!e c!a*&i*& a*$
c!a%%e*&i*& ec#*#mic e*vir#*me*t t!r#u&! #ut t!e 4#r%$5 I* t!e c#m)etitive a*$
%i0era%i6e$ e*vir#*me*t every#*e is tryi*& t# $# 0etter t!a* #t!ers a*$ c#*se7ue*t%y
surviva% #+ t!e +ittest !as c#me i*t# e++ect5 I*sura*ce c#m)a*ies are a%s# t# 0e
c#m)etitive 0y cutti*& c#st a*$ servi*& i* a 0etter 4ay t# t!e cust#mers5 N#4 t!e time
!as c#me t# c!##se a*$ a$#)t a))r#)riate $istri0uti#* c!a**e% t!r#u&! 4!ic! t!e
i*sura*ce c#m)a*ies ca* &et t!e maximum 0e*e+it a*$ serve cust#mers i* ma*i+#%$e$
4ays5 "u%ti c!a**e% $istri0uti#* a*$ mar3eti*& #+ i*sura*ce )r#$ucts 4i%% 0e t!e smart
strate&y t# c#*ti*ue t# )%ay a* im)#rta*t r#%e i* $istri0uti#*8 a%ter*ative c!a**e%s %i3e
c#r)#rate a&e*ts 0r#3ers a*$ 0a*cassura*ce 4i%% )%ay a &reater r#%e i* $istri0uti#*5
O*e #+ t!e m#re rece*t exam)%es #+ +i*a*cia% $iversi+icati#* is 90a*cassura*ce:8 t!e term
&ive* t# t!e $istri0uti#* #+ i*sura*ce )r#$ucts t!r#u&! 0ra*c!es #r #t!er $istri0uti#*
c!a**e%s #+ t!e 0a*3s5 T!e c#*ce)t t!at #ri&i*ate$ i* Fra*ce8 *#4 c#*stitutes t!e
$#mi*a*t m#$e% i* a *um0er #+ Eur#)ea* a*$ #t!er c#u*tries a*$ t!e same is +ast
catc!i*& u) i* I*$ia as 4e%%5
SBI Li+e I*sura*ce C#m)a*y8 a ;#i*t ve*ture 0et4ee* SBI a*$ Car$i+ S5A58 a %ea$i*& %i+e
i*sura*ce c#m)a*y #+ Fra*ce8 is a )re$#mi*a*t )%ayer i* 0a*cassura*ce5 T!is )r#;ect
re)#rt &ives a* i$ea a0#ut “A study on Bancassuanc! at Stat! Ban" o# Ind$a% Goa&!s
'anc(% B!l)au*.+ I* t!is )r#;ect re)#rt a* e++#rt !as 0ee* ma$e t# u*$ersta*$ t!e
c#*ce)t #+ Ba*cassura*ce a*$ its )ractica% a))%ica0i%ity at State Ba*3 #+ I*$ia8 Be%&aum5
T!e stu$y a%s# i*c%u$es vari#us as)ects %i3e 4!ic! m#$e% #+ 0a*cassura*ce is a))%ie$ i*
State Ba*3 #+ I*$ia8 t!e vari#us i*$ivi$ua% a*$ &r#u) i*sura*ce )r#$ucts 4!ic! are
mar3ete$ t!r#u&! SBI8 t!e 0e*e+its #+ Ba*cassura*ce t# t!e 0a*38 RBI a*$ IRDA
&ui$e%i*es #* 0a*cassura*ce a*$ t!e eva%uati#* #+ t!e +uture )r#s)ects #+ 0a*cassura*ce
i* SBI5
exam)%es #+ i#*
BABASAB PATIL Page
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
But t!ere are c!a%%e*&es8 t!e m#st c#mm#* c!a%%e*&es t# success #+ 0a*cassura*ce are
)##r ma*)#4er ma*a&eme*t8 %ac3 #+ a sa%es cu%ture 4it!i* t!e 0a*38 i*su++icie*t )r#$uct
)r#m#ti#*s8 +ai%ure t# i*te&rate mar3eti*& )%a*s8 mar&i*a% $ata0ase ex)ertise8 )##r sa%es
c!a**e% %i*3a&es8 i*a$e7uate i*ce*tives8 resista*ce t# c!a*&e8 *e&ative attitu$e t#4ar$s
i*sura*ce a*$ u*4ie%$y mar3eti*& strate&y5 Eve* i*surers a*$ 0a*3s t!at seem i$ea%%y
suite$ +#r a 0a*cassura*ce )art*ers!i) ca* ru* i*t# )r#0%ems $uri*& im)%eme*tati#*5 O*e
m#re im)#rta*t #0stac%e i* $eve%#)me*t #+ 0a*cassura*ce i* I*$ia !as 0ee* a set #+
re&u%at#ry 0arriers5 S#me #+ t!ese !ave rece*t%y 0ee* c%eare$ 4it! t!e )assa&e #+ t!e
I*sura*ce s!#) 4!ere
m#rt&a&es8 savi*&s8 )e*si#*s a*$ i*sura*ce )r#$ucts 4i%% 0e avai%a0%e5
O's!&at$ons,
1= T!e ;#i*t ve*ture m#$e% #+ 0a*cassura*ce is a))%ie$ i* SBI5 SBI Li+e is t!e ;#i*t
ve*ture 0et4ee* SBI a*$ Car$i+ %i+e i*sura*ce c#m)a*y #+ Fra*ce5 SBI )r#vi$es
*et4#r38 Car$i++ )r#vi$es tec!*#%#&y5
= Ba*cassura*ce is 0e*e+icia% +#r t!e 0a*3s8 0ecause
i5 T!e c!a*ces #+ %#a* 0ec#mi*& N#* )er+#rmi*& assets 4i%% 0e re$uce$ as it
&ives security t# t!e %#a* am#u*t5
ii5 It re$uces t!e ris3 #+ %#a*s 0ec#mi*& $e0t %#a*s t# t!e 0a*35
iii5 It !e%)s t!e 0a*3 0y i*creasi*& t!e s3i%%s #+ t!e em)%#yees5
iv5 It i*creases t!e t#ta% #t!er i*c#me #+ t!e 0a*35
(= T!e )r#)#rti#* #+ t#ta% misce%%a*e#us i*c#me i* t#ta% i*c#me !as 0ee* i*crease$
a+ter t!e 0ra*c! t##3 u) t!e activity #+ cr#ss se%%i*&5
'= "a;#r )#rti#* #+ t!e em)%#yees !ave *#t 0ee* &ive* a*y trai*i*& +#r cr#ss se%%i*&5
-= Out #+ (. 0a*3 em)%#yees8 ,(5(? em)%#yees are i*v#%ve$ i* t!e activity #+
0a*cassura*ce5
/= Out #+ em)%#yees 4!# are i*v#%ve$ i* t!e activity #+ cr#ss se%%i*&8 2.52?
em)%#yees #)i*e t!at it is i*creasi*& t!eir s3i%%s5
BABASAB PATIL Page (
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
,= Cr#ss se%%i*& is a$va*ta&e#us t# t!e 0a*3 as 4!e* t4# cust#mer acc#u*ts are
c#m)are$ i5e5 #*e 4!# !as ta3e* 0a*cassura*ce 4it! a*#t!er cust#mer 4!# !as
*#t ta3e* 0a*cassura*ce8 t!e 0a*3 is m#re 0e*e+ite$ i*case #+ cust#mer 4!# !as
ta3e* 0a*cassura*ce5
Su))!st$ons,
1= Trai*i*& s!#u%$ 0e &ive* t# a%% t!e em)%#yees #+ t!e 0ra*c! 4it! res)ect t# cr#ss
se%%i*&5
= Ba*3s !ave 4it*esse$ a $ec%i*e i* mar&i*s i* t!eir c#re %e*$i*& 0usi*ess $ue t#
+a%%i*& i*terest rates5 I*sura*ce $istri0uti#* !e%)s t# i*crease t!e +ee 0ase$
ear*i*&s #+ 0a*3s t# a c#*si$era0%e exte*t5 S# t!e 0a*3 em)%#yees s!#u%$ try t#
i*crease t!e t#ta% #t!er i*c#me #+ t!e 0a*3 0y $#i*& cr#ss se%%i*&5
(= Ba*3 em)%#yees 4!# are i*v#%ve$ i* 0a*cassura*ce s!#u%$ 0e &ive* +u%%
3*#4%e$&e #+ t!e tar&et cust#mers5
'= I* #r$er t# attract m#re )#%icy !#%$ers8 t!e 0a*3 em)%#yees a*$ i*sura*ce a&e*ts
s!#u%$ )r#m)t%y atte*$ t# t!e e*7uiries #+ )#%icy!#%$ers5
-= Ba*3 s!#u%$ try t# +aci%itate #*%i*e a*$ i*ter*et )ayme*ts t#4ar$s i*sura*ce
)r#$ucts5
Conclus$on,
@it! re+ere*ce t# SBI8 0a*cassura*ce is &ai*i*& acce)ta*ce &ra$ua%%y5 Ba*3 is
c#*ver&i*& t#4ar$s a m#$e% #+ &%#0a% retai% +i*a*cia% i*stituti#* #++eri*& a 4i$e array #+
)r#$ucts creati*& a #*e st#)>s!#) 4!ere m#rt&a&es8 savi*&s8 )e*si#*s a*$ i*sura*ce
)r#$ucts 4i%% 0e avai%a0%e5 S#me #+ t!e re&u%at#ry issues *ee$ t# 0e a$$resse$
c#m)re!e*sive%y a*$ s#rte$ #ut )articu%ar%y 4it! res)ect t# c#m)etiti#* a*$ mar3et
structure )r#0%ems5 Aive* t!ese c!a*&es8 0a*cassura*ce a*$ c#%%a0#rati#* 0et4ee* 0a*3s
a*$ i*surers !as a %#*& 4ay t# &# i* I*$ia5
BABASAB PATIL Page '
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
RESEARC- MET-ODO.OGY
O'/!ct$&!s o# t(! Study,
15 T# u*$ersta*$ t!e c#*ce)t #+ Ba*cassura*ce a*$ its )ractica% a))%ica0i%ity at State
Ba*3 #+ I*$ia8 Be%&aum5
5 T# 3*#4 4!ic! m#$e% #+ Ba*cassura*ce is a))%ie$ i* State Ba*3 #+ I*$ia5
(5 T# stu$y t!e vari#us i*$ivi$ua% a*$ &r#u) i*sura*ce )r#$ucts 4!ic! are mar3ete$
t!r#u&! State Ba*3 #+ I*$ia5
'5 T# +i*$ #ut t!e 0e*e+its #+ Ba*cassura*ce t# t!e 0a*35
-5 T# stu$y t!e Reserve Ba*3 #+ I*$ia eye vie4 #+ i*sura*ce sect#r re+#rms
N# Date Re+#rms
1 Se)tem0er
12-/
I*c#r)#rati#* #+ LIC a*$ mer&er #+ '- )rivate %i+e i*surers8
*ati#*a%i6e$ i* Ea* 12-/5
Ea*uary 12,
Ea*uary 12,(
Ea*uary 12,'
Nati#*a%i6ati#* #+ &e*era% i*sura*ce sca%e i*$ustries i* a 4ay 4!ic! !a$ *#
)ara%%e% e%se4!ere5 But t!e t!ree 0a*3s 4ere ri&#r#us%y exc%u$e$ +r#m a*y 0usi*ess
i*v#%vi*& +#rei&* exc!a*&e5 N#t #*%y 4as suc! 0usi*ess c#*si$ere$ ris3y +#r t!ese 0a*3s8
4!ic! !e%$ &#ver*me*t $e)#sits8 it 4as a%s# +eare$ t!at t!ese 0a*3s e*;#yi*& &#ver*me*t
)atr#*a&e 4#u%$ #++er u*+air c#m)etiti#* t# t!e exc!a*&e 0a*3s 4!ic! !a$ 0y t!e*
arrive$ i* I*$ia5 T!is exc%usi#* c#*ti*ue$ ti%% t!e creati#* #+ t!e RBI i* 12(-5
Ban" o# Bo*'ay
P!s$d!ncy Ban"s o#
B!n)al
T!e )resi$e*cy Ba*3s #+ Be*&a%8 B#m0ay a*$ "a$ras 4it! t!eir ,. 0ra*c!es 4ere
mer&e$ i* 121 t# +#rm t!e Im)eria% Ba*3 #+ I*$ia5 T!e tria$ !a$ 0ee* tra*s+#rme$ i*t# a
m#*#%it! a*$ a &ia*t am#*& I*$ia* c#mmercia% 0a*3s !a$ emer&e$5 T!e *e4 0a*3 t##3
#* t!e tri)%e r#%e #+ a c#mmercia% 0a*38 a 0a*3erGs 0a*3 a*$ a 0a*3er t# t!e &#ver*me*t5
But t!is creati#* 4as )rece$e$ 0y years #+ $e%i0erati#*s #* t!e *ee$ +#r a GState Ba*3 #+
I*$iaG5 @!at eve*tua%%y emer&e$ 4as a G!a%+>4ay !#useG c#m0i*i*& t!e +u*cti#*s #+ a
c#mmercia% 0a*3 a*$ a 7uasi>ce*tra% 0a*35 T!e esta0%is!me*t #+ t!e Reserve Ba*3
simu%ta*e#us%y sa4 im)#rta*t ame*$me*ts 0ei*& ma$e t# t!e c#*stituti#* #+ t!e Im)eria%
Ba*3 c#*verti*& it i*t# a )ure%y c#mmercia% 0a*35 T!e ear%ier restricti#*s #* its 0usi*ess
4ere rem#ve$ a*$ t!e 0a*3 4as )ermitte$ t# u*$erta3e +#rei&* exc!a*&e 0usi*ess a*$
execut#r a*$ trustee 0usi*ess +#r t!e +irst time5
I*0!$al Ban"
T!e Im)eria% Ba*3 $uri*& t!e t!ree a*$ a !a%+ $eca$es #+ its existe*ce rec#r$e$ a*
im)ressive &r#4t! i* terms #+ #++ices8 reserves8 $e)#sits8 i*vestme*ts a*$ a$va*ces8 t!e
i*creases i* s#me cases am#u*ti*& t# m#re t!a* six>+#%$5 T!e +i*a*cia% status a*$
BABASAB PATIL Page 1-
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
security i*!erite$ +r#m its +#reru**ers *# $#u0t )r#vi$e$ a +irm a*$ $ura0%e )%at+#rm5
But t!e %#+ty tra$iti#*s #+ 0a*3i*& 4!ic! t!e Im)eria% Ba*3 c#*siste*t%y mai*tai*e$ a*$
t!e !i&! sta*$ar$ #+ i*te&rity it #0serve$ i* its #)erati#*s i*s)ire$ c#*+i$e*ce i* its
$e)#sit#rs t!at *# #t!er 0a*3 i* I*$ia c#u%$ )er!a)s t!e* e7ua%5 A%% t!ese e*a0%e$ t!e
Im)eria% Ba*3 t# ac7uire a )re>emi*e*t )#siti#* i* t!e I*$ia* 0a*3i*& i*$ustry a*$ a%s#
secure a vita% )%ace i* t!e c#u*tryGs ec#*#mic %i+e5
Sta*0 o# I*0!$al Ban" o# Ind$a
@!e* I*$ia attai*e$ +ree$#m8 t!e Im)eria% Ba*3 !a$ a ca)ita% 0ase )art*ere$ a*$
state>s)#*s#re$ 0a*3 0y ta3i*& #ver t!e Im)eria% Ba*3 #+ I*$ia8 a*$ i*te&rati*& 4it! it8
BABASAB PATIL Page 1/
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
t!e +#rmer state>#4*e$ #r state>ass#ciate 0a*3s5 A* act 4as acc#r$i*&%y )asse$ i*
Par%iame*t i* "ay 12-- a*$ t!e State Ba*3 #+ I*$ia 4as c#*stitute$ #* 1 Eu%y 12--5
"#re t!a* a 7uarter #+ t!e res#urces #+ t!e I*$ia* 0a*3i*& system t!us )asse$ u*$er t!e
$irect c#*tr#% #+ t!e State5 Later8 t!e State Ba*3 #+ I*$ia
ass#ciate$ 0a*3s as its su0si$iaries )r#$uct i**#vati#*8
$istri0uti#*8 cust#mer service a*$ i*vestme*ts5 I* t!e a&e #+ sti++ c#m)etiti#* *# #*e is
rea$y t# %##se its #4* )#ssessi#*5
BABASAB PATIL Page .
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
INTRODUCTION TO BANCASSURANCE
T!#u&! muc! a$# 4as ma$e a0#ut 0a*cassura*ce8 a* a%ter*ate c!a**e% t# !a43 ris3
)r#$ucts t!r#u&! 0a*3s8 t!e c!a**e% is yet t# )ic3 u) )ace as #+ t#$ay5 "#st #+ t!e
i*sura*ce c#m)a*ies !ave a%rea$y tie$ u) 4it! 0a*3s t# ex)%#re t!e )#te*tia% #+ t!e
c!a**e% t!at !as 0ee* a success st#ry i* Eur#)e a*$ %e&is%ati#*s are a%s# i* )%ace5
Ba*cassura*ce )rimari%y 0a*3s #* t!e re%ati#*s!i) t!e cust#mer !as $eve%#)e$ #ver a
)eri#$ #+ time 4it! t!e 0a*35 A*$ )us!i*& ris3 )r#$ucts t!r#u&! 0a*3s is a c#st>e++ective
a++air +#r a* i*sura*ce c#m)a*y c#m)are$ t# t!e a&e*t r#ute8 4!i%e8 +#r 0a*3s8
c#*si$eri*& t!e +a%%i*& i*terest rates8 +ee 0ase$ i*c#me c#mi*& i* at a mi*imum c#st is
m#re t!a* 4e%c#me5
T!e strate&y +#r usi*& t!e esta0%is!e$8 e*tre*c!e$ $istri0uti#* *et4#r3 +#r #*e )r#$uct t#
mar3et #t!er *e4 )r#$ucts !as %#*& existe$ i* t!e c#*sumer &##$s sect#r5 T!us t!e
*et4#r3s +#r s#a)s a*$ $eter&e*ts !ave 0ee* use$ 0y c#m)a*ies t# $istri0ute *e4%y
%au*c!e$ +##$ )r#$ucts8 t!e $istri0uti#* c!a**e% +#r Ra$#s !as 0ee* use$ t# mar3et
te%evisi#*s a*$ s# #*5 O+ c#urse8 t!e 0asic )remise +#r t!is 3i*$ #+ cr#ss se%%i*& is t!e +act
BABASAB PATIL Page 1
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
t!at c#m)a*ies 3ee) $iversi+yi*& t!eir )r#$uct )#rt+#%i#s8 usi*& esta0%is!e$ 9i*cum0e*t:
*et4#r3s t# )r#m#te a*$ $istri0ute *e4 )r#$uct %i*es5 Ba*3s8 t##8 !ave i* t!e rece*t )ast
a$#)te$ t!is strate&y 0#t! i* I*$ia as 4e%% as i*ter*ati#*a%%y5 T!ey !ave m#ve$ a4ay +r#m
t!e c%assica% m#$e% #+ $e)#sit ta3i*& a*$ cre$it $is0ursa% t!r#u&! t!eir 0ra*c! *et4#r3s
a*$ !ave 0e&u* t# #++er a 4i$e ra*&e #+ )r#$ucts a*$ services %i3e security 0r#3i*&
+aci%ities a*$ mutua% +u*$s5 T!is is t!e )!e*#me*#* #+ 9u*iversa% 0a*3i*&: t!at 0ui%$s #*
t!e )ri*ci)%e #+ %evera&i*& existi*& *et4#r3s t# 0r#a$e* )#rt+#%i# #++eri*&s5 C!a*&e i*
re&u%at#ry re&imes !as a%s# +aci%itate$ t!is $iversi+icati#*5
Ar#4i*& $isi*terme$iati#* 0y c#r)#rate 0#rr#4ers
A%t!#u&! 0a*3s a*$ i*sura*ce c#m)a*ies are yet t# exc!a*&e t!eir 4e$$i*& ri*&s
0a*cassura*ce is a%rea$y i* s#me +#rm i* I*$ia5 Ba*3s are se%%i*& )ers#*a% acci$e*t a*$
0a&&a&e i*sura*ce +#r its cre$it car$ mem0ers8 issue$ m#rt&a&e %i*3e$ i*sura*ce )r#$ucts
%i3e +ire8 m#t#r #r catt%e i*sura*ce t# t!eir cust#mers a*$ esta0%is!i*& +ace t# +ace
re%ati#*s!i) 4it! t!eir cust#mers 0y %evera&i*& t!eir existi*& ca)a0i%ities5 I* #r$er t#
im)%eme*t t!e 0a*cassura*ce m#$e% i* I*$ia a %#t #+ ste)s s!#u%$ 0e ta3e*>
a= Hi&! ca)ita% i*vestme*t i* t!e i*+rastructura% $eve%#)me*t )articu%ar%y i* IT a*$ Te%e
C#mmu*icati#*s 4i%% !ave t# 0e re7uire$5
0= A ca%% ce*tre 4i%% !ave t# 0e create$5
c= T#) )r#+essi#*a%s 4i%% !ave t# 0e !ire$5
$= RD D ce%% 4i%% !ave t# 0e create$ t# &e*erate *e4 i$eas a*$ )r#$ucts5
BABASAB PATIL Page -
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
A S@OT a*a%ysis is $#*e #* 0a*cassura*ce i* t!e c#*text #+ I*$ia5
St!n)t(s,>
I* a c#u*try %i3e I*$ia #+ #*e 0i%%i#* )e#)%e 4!ere s3y is t!e %imit5 T!ere is a vast
u*ta))e$ )#te*tia%s 4aiti*& +#r %i+e i*sura*ce )r#$ucts5 T!ere are m#re t!a* 2.. mi%%i#*
%ives 4aiti*& +#r %i+e c#ver8 .. mi%%i#* !#use !#%$ 4aiti*& +#r !#use!#%$ i*sura*ce
)#%icy5 "i%%i#*s #+ )e#)%e trave%i*& i* a*$ #ut #+ I*$ia are 4aiti*& +#r #verseas
me$ic%aim a*$ Trave% i*sura*ce )#%icies 4!#%e 4#r%$ is eyei*& #* t!e sec#*$ %ar&est
mi$$%e c%ass se&me*t a+ter C!i*a t# ta)5 Ot!er t!a* t!is t!ere is a !u&e )u%% #+ s3i%%e$
)r#+essi#*a%s t# re%#cate t!e 0a*cassura*ce ve*ture t# )r#vi$e *e4 )r#$uct t!r#u&! RDD
%ast #+ a%%8 LIC D AIC !ave %ar&e 0ra*c! *et4#r3 +aci%ity t# im)%eme*t 0a*cassura*ce
m#$e% very e++ective%y5
;!a"n!ss!s,>
I* t!e case #+ ra)i$ &r#4t! #+ I*+#rmati#* Tec!*#%#&y 0a*3s a*$ i*sura*ce c#m)a*ies
are sti%% %ac3i*& its im)%eme*tati#*5 T!#u&! it is a4a3e*i*& 0ut it is t## %ate a*$ t## %itt%e5
I* t!e a&e #+ @i$e Area Net>4#r3
T!#u&! *#t at t!e same %eve%8 0a*3s $ata 0ase i* I*$ia is e*#rm#us a*$ !as t# 0e
$issecte$ vari#us%y a*$ vari#us !#m#&e*e#us &r#u)s are c!umme$ #ut i* #r$er t#
)#siti#* 0a*cassura*ce )r#$ucts5 @it! a &##$ IT structure t!ey ca* rea%%y $# 4#*$ers5
A))r#)riate atm#s)!ere a*$ )#%itica% c#*scie*ti#us !ave t# 0e 0ui%t u) +#r %i0era%i6ati#*
a*$ i+ it is $#*e t!e* RBI #r IRDA s!#u%$ !ave *# !esitati#* i* a%%#4i*& t!e marria&e #+
0a*3i*& a*$ i*sura*ce sect#rs t# ta3e )%ace5 "er&er a*$ Ac7uisiti#* #r setti*& u) #+ ;#i*t
ve*ture is *ecessary i* t!is $irecti#*5
BABASAB PATIL Page /
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
T(!ats,>
Success #+ 0a*cassura*ce ve*ture re7uires c!a*&e i* a))r#ac!8 t!i*3i*& a*$ 4#r3 cu%ture
#* t!e )art #+ every0#$y i*v#%ve$5 I* I*$ia t!ere is a%4ays a te*$e*cy t# restrict a*y
c!a*&e 4!et!er its im)act 0ec#mes +av#ra0%e #r *#t5 S# t!ere s!#u%$ 0e a c%ear
ve!eme*ce5 S#metimes *#*>res)#*se +r#m t!e tar&et cust#mers 0ec#mes )#ssi0%e t!reat
as it 4as +#u*$ i* USA i* 121.Gs a*$ +ai%e$5 US 0a*3s !ave tur*e$ t!eir atte*ti#* %i+e i*sura*ce se&me*ts as AOI is re)#rte$ !ave 0ee*
active%y c#*si$eri*& t# i*crease t!e FDI:s )artici)ati#* t# t!e u) t# '2 )er ce*t5
II. Poduct9'as!d Class$#$cat$on,
$= Stand9alon! Insuanc! Poducts,
I* t!is case 0a*cassura*ce i*v#%ves mar3eti*& #+ t!e i*sura*ce )r#$ucts t!r#u&! eit!er
re+erra% arra*&eme*t #r c#r)#rate a&e*cy 4it!#ut mixi*& t!e i*sura*ce )r#$ucts 4it! a*y
#+ t!e 0a*3s: #4* )r#$uctsKservices5 I*sura*ce is s#%$ as #*e m#re item i* t!e me*u #+
)r#$ucts #++ere$ t# t!e 0a*3:s cust#mer8 !#4ever8 t!e )r#$ucts #+ 0a*3s a*$ i*sura*ce
4i%% !ave t!eir res)ective 0ra*$s t##8 e5&58 Karur Fysya Ba*3 Lt$ se%%i*& #+ %i+e i*sura*ce
BABASAB PATIL Page (.
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
)r#$ucts #+ Bir%a Su* I*sura*ce #r *#*>%i+e i*sura*ce )r#$ucts #+ Ba;a; A%%ia*6 Ae*era%
I*sura*ce C#m)a*y5
$$= Bl!nd o# Insuanc! 2$t( Ban" Poducts,
@it! t!e +i*a*cia% i*te&rati#* 0#t! 4it!i* t!e c#u*try a*$ &%#0a%%y8 i*sura*ce is
i*creasi*&%y 0ei*& vie4e$ *#t ;ust as a 9sta*$ a%#*e: )r#$uct 0ut as a* im)#rta*t item #*
a me*u #+ +i*a*cia% )r#$ucts t!at !e%)s c#*sumers t# 0%e*$ a*$ create a )#rt+#%i# #+
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i* rece*t years8 !as 0ee* a&&ressive%y mar3eti*& cre$it a*$ $e0it car$ 0usi*ess8 4!ereas
t!e car$!#%$ers &et t!e 9i*sura*ce c#ver: +#r a *#mi*a% +ee #r Curre*t Lia0i%ities D Pr#visi#*sP
N# #+ U*its #utsta*$i*&
Be*e+itsC
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• "aturity Be*e+itsC At t!e e*$ #+ t!e term t!e cust#mer 4i%% &et t!e +u*$ va%ue5
• I*creasi*& Deat! Be*e+itC F#r a%% i* +#rce$ )#%icies8 i* case #+ $eat! a+ter
c#m)%eti#* #+ a&e , y#ur *#mi*ee 4i%% receive Fu*$ Fa%ue O Sum Assure$
#t!er4ise +u*$ va%ue is )aya0%e5
@!at is t!e )#%icy termJ
"i*imum yearsC 1.8 "aximum yearsC '.
@!# ca* 0uy t!is )r#$uctJ
T!e )e#)%e 4!# are i* &##$ !ea%t! a*$ i* t!e a&e &r#u) #+ . t# /. years5 "aximum a&e
at "aturity is ,. years5
@!at is t!e sum assure$J
Deci$e t!e am#u*t y#u ca* )ut asi$e t# 0e i*veste$ i* H#ri6#* II every year5 .$#! Co&!
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)%a*s5
Key +eaturesC
• U*matc!e$ F%exi0i%ity t# matc! y#ur c!a*&i*& re7uireme*t
• C!#ice #+ ' i*vestme*t +u*$sC H#u ca* c!a*&e t!e a%%#cati#* )erce*ta&e 4!e*
y#u 4a*t8 ' s4itc!es +ree )er a**um i5e5 e7uity8 0#*$8 &r#4t! a*$ 0a%a*ce$ +u*$s5
• C!#ice #+ term C Limite$ term #r 4!#%e %i+e
H#4 $#es it 4#r3J
SBI Li+e U*it P%us II P%a*sC )%a*s $e)e*$i*& #* y#ur )remium m#$eC
15 Si*&%e Premium "#$eC U*it P%us II Si*&%e
5 Re&u%ar Premium "#$eC U*it P%us II Re&u%ar
Deci$e t!e i*vestme*t am#u*tC
Fre7ue*cy "i*imum Premium "aximum Premium
Si*&%e Rs5'.8 ... N# Limit
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Si*&%e
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"i*imum Sum Assure$ "aximum Sum Assure$
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/-? #+ si*&%e )remium am#u*t
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BABASAB PATIL Page ('
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
Premium Assure$
Term M - t# 1.
years
- times a**ua%
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De)e*$s #* t!e a&eQ
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? Matu$ty B!n!#$t, At maturity8 t!e Fu*$ Fa%ue as #* t!at $ate is )ai$ i* +u%%5
? D!at( B!n!#$t, I* t!e u*+#rtu*ate eve*t #+ t!e $eat!
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• A+ter attai*i*& a&e , a*$ 0e+#re /-t! 0irt!$ay8 t!e 0e*e+iciary 4i%% receive !i&!er
#+ Fu*$ Fa%ue #r Sum Assure$ %ess Partia% @it!$ra4a%s 4it!i* t!e %ast 1 ca%e*$ar
m#*t!s5
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#+ /- 4i%% 0e set #++ a&ai*st t!e Sum Assure$ exc%u$i*& )artia% 4it!$ra4a%s +r#m
T#) U) Am#u*t5
-o$@on II 0!ns$on,
BABASAB PATIL Page (-
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
H#ri6#* II Pe*si#* is a sa+e a*$ a !ass%e +ree 4ay t# &et !i&! retur*sR H#ri6#* II Pe*si#*
c#mes 4it! t!e u*i7ue +eature #+ Aut#matic Asset A%%#cati#* 0y mea*s #+ 4!ic! y#u
tru%y8 $#*:t *ee$ t# 0e a* ex)ert t# &r#4 y#ur m#*eyR T!is is a U*it Li*3e$ Pe*si#*
)r#$uct5 I+ y#u are i* t!e a&e &r#u) #+ 11 t# /. Fu*$ va%ue is )aya0%e t# *#mi*ee5
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e*try
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a&e 0et4ee* -. t# ,. years5 H#u ca* c!##se t# )ay eit!er si*&%e )remium #r )ay re&u%ar
BABASAB PATIL Page (,
A&e Ar#u) 11>(- A&e Ar#u) (/>'- A&e Ar#u) '/>/.
"i* - times a**ua%i6e$ )remium
- times a**ua%i6e$
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BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
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• C!#ice t# i*vest D c#*tr#% +#ur $i++ere*t +u*$s as )er y#ur ris3 a))etite5
• F%exi0i%ity t# c!##se 0et4ee* t4# #)ti#*sC )ure )e*si#* a*$ )e*si#* cum %i+e
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• T#) u) )ayme*tsC a*y am#u*t8 a*ytime5
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H#4 $#es it 4#r3J
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• C!##se )%a* #)ti#*
? O)ti#* I Pure Pe*si#* P%a* /-=
? O)ti#* II Pe*si#* P%a* 4it! %i+e c#ver /.=
I* case y#u !ave #)te$ +#r #)ti#* II8 y#ur sum assure$ 4i%% 0e as me*ti#*e$ 0e%#4
F#r si*&%e )remium m#$eC
F#r re&u%ar )remium m#$eC
BABASAB PATIL Page (1
A&e at e*try Sum Assure$
11>(- 1- ? #+ si*&%e )remium su0;ect t# maximum SA #+ Rs5 1. %acs
(/>'- 1- ? #+ si*&%e )remium su0;ect t# maximum SA #+ Rs5 -%acs
'/>/. 1- ? #+ si*&%e )remium su0;ect t# maximum SA #+ Rs5 15 %acs
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
Be*e+itsC
Deat! Be*e+itC
• Duri*& accumu%ati#* )!aseC I+ y#u #)t +#r #)ti#* IC Pure Pe*si#* P%a*5 Fu*$
va%ue 4i%% 0e )ai$ i* %um) sum t# *#mi*ee5 I+ y#u #)t +#r #)ti#* IC Pure Pe*si#*
P%a* 4it! %i+e c#ver5 T!e !i&!er #+ +u*$ va%ue #r sum assure$ 4i%% 0e )ai$ i* %um)
sum t# *#mi*ee5 Auara*tee$ a$$iti#*s 0y 4ay #+ +ree a%%#cati#* #+ u*its t#
i*crease y#ur retireme*t 3itty5
• O* Festi*&C ItGs y#ur i*c#meB y#u $eci$e !#4 it 4#r3s +#r y#u5 H#u !ave c!#ice
a*$ +%exi0i%ity5 H#u ca* ta3e u) t# #*e t!ir$ #+ t!e +u*$ va%ue i* %um) sum5
• Duri*& A**uity P!aseC Ba%a*ce am#u*t !as t# 0e use$ t# )urc!ase a**uity5 T!e
rate at 4!ic! t!e am#u*t at vesti*& $ate 4i%% 0e c#*verte$ t# a* a**uity is *#t
&uara*tee$ a*$ 4i%% 0e 0ase$ #* t!e )revai%i*& imme$iate a**uity rates u*$er t!e
re%eva*t a**uity #)ti#* at t!e vesti*& $ate5
• Tax 0e*e+itC Save tax uKs 1. CCC A&e at E*try
BABASAB PATIL Page (2
A&e at e*try Sum Assure$
11>(- - #r 1. times +irst a**ua%i6e$ )remium su0;ect t# maximum SA #+
Rs51. La3!s
(/>'- - #r 1. times +irst a**ua%i6e$ )remium su0;ect t# maximum SA #+
Rs5- La3!s
'/>/. Rs515 %a3!s
"i*imum Hears "aximum Hears
- Hears - Hears
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
@!# ca* 0uy t!is )r#$uctJ
I+ y#u are i* t!e a&e &r#u) #+ 11 t# /- y#u ca* #)t +#r U*it P%us II )e*si#* )%a* 4it!#ut
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.$#!lon) 0!ns$on,
Li+e ex)ecta*cy is im)r#vi*& ra)i$%y5 Pe#)%e %ive %#*&er5 H#u ca**#t 4#r3 t!r#u&!#ut
y#ur %i+e5 H#u 4i%% !ave t# retire +r#m 4#r35 I* t!e )#st retireme*t )eri#$ y#u !ave %#t #+
time +#r y#urse%+5 H#u 4#u%$ %i3e t# $# t!i*&s y#u !ave *#t $#*e 4!i%e y#u 4ere
4#r3i*&5 H#u *ee$ t# !ave a c#m)re!e*sive )%a* t# meet y#ur )#st retireme*t +i*a*cia%
*ee$s e*suri*& c#m)%ete )eace #+ mi*$5 T!is is a Pe*si#* )r#$uct5 I+ y#u are i* t!e a&e
&r#u) #+ 11 years recei)t #+ t!e
ris3Kri$er )remium 4it!i* a &race )eri#$ #+ (. $ays8 t!e %i+e c#verKri$er 4#u%$ %a)se5
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)remium8 su0;ect t# )ayme*t #+ ris3 )remium +#r t!e +uture5
Tax Be*e+itsC
• F#r Em)%#yerC T!e i*itia% a*$ A**ua% c#*tri0uti#*s ma$e t!r#u&! a* a))r#ve$
Aratuity trust ca* 0e c%aime$ as 0usi*ess ex)e*$iture as )er t!e )r#visi#*s u*$er
secti#* (/ year%y #r Hear%y i*sta%%me*ts5
"i*imum Sum Assure$C Rs51...K>
Arace Peri#$C A &race )eri#$ #+ (. $ays is avai%a0%e +#r a%% )remium m#$es5 F#r "#*t!%y
m#$e it is 1- $ays5 F#r F#rma% &r#u)s8 i+ $eat! c%aim arises $uri*& t!e &race )eri#$ t!e
c%aim 4i%% 0e )ai$ su0;ect t# c%aim i*vesti&ati#* a*$ ru%es a+ter $e$ucti#* #+ $ue a*$
u*)ai$ )remium su0;ect t# re*e4a% #+ master )#%icy5 F#r I*+#rma% &r#u)s8 i+ $eat! c%aim
arises $uri*& t!e &race )eri#$ t!e c%aim 4i%% 0e )ai$ su0;ect t# c%aim i*vesti&ati#* a*$
ru%es a+ter $e$ucti#* #+ $ue a*$ u*)ai$ +uture )remium +#r t!e i*$ivi$ua% mem0er5
Rei*stateme*t #+ P#%icyC At t!e e*$ #+ t!e #*e>year term8 t!e master )#%icy ca* 0e
re*e4e$5 I+ t!e master )#%icy is *#t re*e4e$ 4it!i* t!e &race )eri#$ t!e )#%icy 4i%% %a)se5
T!e %a)se$ master )#%icy ca* 0e rei*state$ a*$ t!e c#ver 4i%% rec#mme*ce +r#m t!e $ate
#+ rei*stateme*t5
Suici$e Exc%usi#*C N# Suici$e exc%usi#* +#r 0asic %i+e c#ver5 Suici$e c%ause is a))%ica0%e
+#r t!e S)#use C#ver #*%y8 i* case t!e #)ti#* !as 0ee* avai%e$5
Tax 0e*e+itsC Premium )ai$ 0y y#u is c#*si$ere$ as )art #+ t!e 0usi*ess ex)e*ses u*$er
Secti#* (, #+ I*c#me Tax Act8 12/1 a*$ is tax $e$ucti0%e5 Premium )ai$ 0y t!e em)%#yer
is *#t treate$ as a )er7uisite i* t!e !a*$s #+ t!e em)%#yee5 A%% c%aim )ayme*ts are
c#*si$ere$ as *#*>taxa0%e recei)ts a*$ ca* c#*se7ue*t%y 0e c#*si$ere$ as tax exem)t
u*$er Secti#* 1. t# Rs5-.8...K> se%%i*& i*creasi*& t!e t#ta% #t!er i*c#me #+ t!e 0a*3J
20 &0.& &0.& &0.&
2 &.1 &.1 100.0
22 100.0 100.0
YES
NO
Total
Valid
Frequency Percent Valid Percent
u!ulati"e
Percent
BABASAB PATIL Page 1
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
2.00 # &.1$
20.00 # &0.&$
NO
YES
INTERPRETATION,
? Out #+ em)%#yees8 2.52? em)%#yees t#%$ t!at 0a*cassura*ce is
i*creasi*& t!e t#ta% #t!er i*c#me #+ t!e 0a*3 a*$ remai*i*& 251?
em)%#yees t#%$ t!at it is *#t i*creasi*& t!e t#ta% #t!er i*c#me #+ t!e
0a*35
? It is #0serve$ t!at8 ma;#r )#rti#* #+ t!e em)%#yees t#%$ t!at
0a*cassura*ce is i*creasi*& t!e t#ta% #t!er i*c#me #+ t!e 0a*35
,5 I* y#ur #)i*i#*8 is t!is activity u)s *ee$ t# $eve%#) i**#vative )r#$ucts a*$ services rat!er t!a* $e)e*$
#* t!e tra$iti#*a% met!#$s5 T!e 3i*$s #+ )r#$ucts t!e 0a*3s 4#u%$ 0e a%%#4e$ t#
se%% are a*#t!er ma;#r issue5 F#r i*sta*ce8 a c#m)%ex u*it>%i*3e$ %i+e i*sura*ce
)r#$uct is 0etter s#%$ t!r#u&! 0r#3ers #r a&e*ts8 4!i%e a sta*$ar$ term )r#$uct #r
BABASAB PATIL Page 21
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
sim)%e )r#$ucts %i3e aut# i*sura*ce8 !#me %#a* a*$ acci$e*t i*sura*ce c#ver ca*
0e !a*$%e$ 0y 0a*3 0ra*c!es5
5 T!ere *ee$s t# 0e c%arity #* t!e #)erati#*a% activities #+ t!e 0a*cassura*ce i5e58
4!# 4i%% $# t!e 0ra*$i*&8 4i%% t!e i*sura*ce c#m)a*y )re+er t# )%ace a )ers#* at
t!e 0a*3 0ra*c!8 #r 4i%% t!e 0a*3 0ra*c! trai* a*$ )ut u) #*e #+ its #4* )e#)%e8
remu*erati#* #+ t!ese )e#)%e5
(5 Eve* t!#u&! t!e 0a*3s are i* )ers#*a% c#*tact 4it! t!eir c%ie*ts8 a !i&! $e&ree #+
)r#active mar3eti*& a*$ s3i%% is re7uire$ t# se%% t!e i*sura*ce )r#$ucts5 T!is ca*
0e a$$resse$ t!r#u&! )r#)er trai*i*&5
'5 T!ere are !a6ar$s #+ $irect c#m)etiti#* t# c#*ve*ti#*a% 0a*3i*& )r#$ucts5 Ba*3
)ers#**e% may 0ec#me resista*t t# se%% i*sura*ce )r#$ucts si*ce t!ey mi&!t t!i*3
t!ey 4#u%$ 0ec#me re$u*$a*t i+ savi*&s 4ere $iverte$ +r#m 0a*3s t# t!eir
i*sura*ce su0si$iaries5
@it! t!e +i*a*cia% re+#rms a*$ tec!*#%#&ica% rev#%uti#* em0raci*& t!e +i*a*cia% system8
t!ere !as 0ee* a &reat $ea% #+ +%exi0i%ity i* t!e mi*$ set #+ )e#)%e t# acce)t c!a*&e5 T!e
a0#ve #ut%i*e$ )r#0%ems *ee$ *#t8 !#4ever8 $eter t!e 0a*3i*& sect#r t# em0ar3 #*
0a*cassura*ce as a*y +#rm #+ resista*ce +r#m t!e 0a*3 em)%#yees c#u%$ 0e tac3%e$ 0y
$evisi*& a* a))r#)riate i*ce*tive system c#mme*surate 4it! i*te*sive trai*i*& t# t!e
+r#*t%i*e 0a*3 sta++5
1actos t(at a00!a to '! c$t$cal #o t(! succ!ss o# 'ancassuanc!,
15 Strate&ies c#*siste*t 4it! t!e 0a*3Gs visi#*8 3*#4%e$&e #+ tar&et cust#mersG *ee$s8
$e+i*e$ sa%es )r#cess +#r i*tr#$uci*& i*sura*ce services8 sim)%e yet c#m)%ete
)r#$uct #++eri*&s8 str#*& service $e%ivery mec!a*ism8 7ua%ity a$mi*istrati#*8
sy*c!r#*i6e$ )%a**i*& acr#ss a%% 0usi*ess %i*es a*$ su0si$iaries8 c#m)%ete
i*te&rati#* #+ i*sura*ce 4it! #t!er 0a*3 )r#$ucts a*$ services8 exte*sive a*$
BABASAB PATIL Page 22
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
!i&!>7ua%ity trai*i*&8 sa%es ma*a&eme*t trac3i*& system +#r re)#rti*& #* a&e*tsG
time a*$ resu%ts #+ 0a*3 re+erra%s a*$ re%eva*t a*$ +%exi0%e $ata0ase systems5
5 A*#t!er )#i*t is t!e !a*$%i*& #+ cust#mers5 @it! cust#mer a4are*ess %eve%s
i*creasi*&8 t!ey are $ema*$i*& &reater c#*ve*ie*ce i* +i*a*cia% services5
(5 T!e emer&e*ce #+ rem#te $istri0uti#* c!a**e%s8 suc! as PC 0a*3i*& a*$ I*ter*et>
0a*3i*&8 4#u%$ !am)er t!e $istri0uti#* #+ i*sura*ce )r#$ucts t!r#u&! 0a*3s5
'5 T!e emer&e*ce #+ *e4er $istri0uti#* c!a**e%s see3i*& a mar3et s!are i* t!e
*et4#r35
OBSERVATIONS
1= Ba*cassura*ce is t!e )r#cess #+ se%%i*& i*sura*ce )r#$ucts t!r#u&! a 0a*3:s
*et4#r35
BABASAB PATIL Page 1..
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
= T!e ;#i*t ve*ture m#$e% #+ 0a*cassura*ce is a))%ie$ i* SBI5 SBI Li+e is t!e ;#i*t
ve*ture 0et4ee* SBI a*$ Car$i+ %i+e i*sura*ce c#m)a*y #+ Fra*ce5 SBI )r#vi$es
*et4#r38 Car$i++ )r#vi$es tec!*#%#&y5
(= T!ere are vari#us i*$ivi$ua% a*$ &r#u) i*sura*ce )r#$ucts mar3ete$ t!r#u&! SBI
tar&eti*& $i++ere*t &r#u)s #+ cust#mers5
'= Ba*cassura*ce is 0e*e+icia% +#r t!e 0a*3s8 0ecause
i5 It !e%)s t!e 0a*3 0y i*creasi*& t!e s3i%%s #+ t!e em)%#yees5
ii5 It re$uces t!e ris3 #+ %#a* 0ec#mi*& $e0t %#a* +#r t!e 0a*35
iii5 N#* )er+#rmi*& assets 4i%% 0e re$uce$ as it &ives security t# t!e %#a*
am#u*t5
iv5 It i*creases t!e t#ta% #t!er i*c#me #+ t!e 0a*35
-= As )er t!e tre*$ %i*e8 t!e t#ta% i*c#me !as i*crease$ a+ter t!e 0ra*c! t##3 u) t!e
activity #+ cr#ss se%%i*& a*$ a%s# t!ere is a* i*crease i* t!e t#ta% misce%%a*e#us
i*c#me5
/= T!e )r#)#rti#* #+ t#ta% misce%%a*e#us i*c#me i* t#ta% i*c#me !as 0ee* i*crease$
a+ter t!e 0ra*c! t##3 u) t!e activity #+ cr#ss se%%i*&5
,= T!e ? i*crease i* t#ta% i*c#me i* t!e year ../ is %#4 0ecause a$va*ces !ave *#t
0ee* i*crease$ as )er ex)ectati#*s5
1= T!e c#*tri0uti#* #+ c#mmissi#* +r#m cr#ss se%%i*& t# t!e t#ta% i*c#me is %ess5
2= T!e )erce*ta&e #+ c#mmissi#* +r#m cr#ss se%%i*& t# t#ta% misce%%a*e#us i*c#me is
i*creasi*&5
1.= "a;#r )#rti#* #+ t!e em)%#yees !ave *#t 0ee* &ive* a*y trai*i*& +#r cr#ss se%%i*&5
11= Out #+ (. em)%#yees8 ,(5(? em)%#yees are i*v#%ve$ i* t!e activity #+
0a*cassura*ce5
1= Out #+ em)%#yees 4!# are i*v#%ve$ i* t!e activity #+ cr#ss se%%i*&8 2.52?
em)%#yees #)i*e t!at it is i*creasi*& t!eir s3i%%s5
1(= Cr#ss se%%i*& is a$va*ta&e#us t# t!e 0a*38 4!e* t4# cust#mer acc#u*ts are
c#m)are$ i5e5 #*e 4!# !as ta3e* 0a*cassura*ce 4it! a*#t!er cust#mer 4!# !as
*#t ta3e* 0a*cassura*ceB t!e 0a*3 is m#re 0e*e+ite$ i*case #+ cust#mer 4!# !as
ta3e* 0a*cassura*ce5
1'= SBI is +#%%#4i*& RBI a*$ IRDA &ui$e%i*es5
BABASAB PATIL Page 1.1
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
1-= T!e exte*sive )rese*ce #+ 0a*3 0ra*c!es8 t!e str#*& &r#4t! #+ i*sura*ce $ema*$
i* t!e rura% re&i#*s a*$ c%#se*ess #+ t!e 0a*3 sta++ 4it! t!e cust#mers 4i%% ai$
0a*cassura*ce t# &r#4 i* t!e +uture5
1/= As )er IRDA a**ua% re)#rt ..->./8 SBI Li+e I*sura*ce C#m)a*y !as ''1(
ur0a* Li+e I*sura*ce a&e*ts a*$ /22 rura% Li+e I*sura*ce a&e*ts5
1,= "#st #+ t!e cust#mers 4!# !ave ta3e* 0a*cassura*ce are a0#ve (- years #+ a&e5
SUGGESTIONS
1= Trai*i*& s!#u%$ 0e &ive* t# a%% t!e em)%#yees #+ t!e 0ra*c! 4it! res)ect t# cr#ss
se%%i*&5
BABASAB PATIL Page 1.
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
= Ba*3s !ave 4it*esse$ a $ec%i*e i* mar&i*s i* t!eir c#re %e*$i*& 0usi*ess $ue t#
+a%%i*& i*terest rates5 I*sura*ce $istri0uti#* !e%)s t# i*crease t!e +ee 0ase$
ear*i*&s #+ 0a*3s t# a c#*si$era0%e exte*t5 S# t!e 0a*3 em)%#yees s!#u%$ try t#
i*crease t!e t#ta% #t!er i*c#me #+ t!e 0a*3 0y $#i*& cr#ss se%%i*&5
(= Ba*3 em)%#yees s!#u%$ 0e m#tivate$ t# ta3e t!e trai*i*& 0y s)eci+yi*& t!e
c#mmissi#* am#u*t 4!ic! t!ey are &#i*& t# &et a+ter cr#ss se%%i*&5
'= Ba*3 em)%#yees 4!# are i*v#%ve$ i* 0a*cassura*ce s!#u%$ 0e &ive* +u%%
3*#4%e$&e #+ t!e tar&et cust#mers5
-= T!ey s!#u%$ a%s# 0e &ive* trai*i*& re&ar$i*& a%% )r#$uct #++eri*&s 4it! t!e 7ua%ity
service $e%ivery a*$ a$mi*istrati#*5
/= Ba*3 s!#u%$ try t# +aci%itate #*%i*e a*$ i*ter*et )ayme*ts t#4ar$s i*sura*ce
)r#$ucts5
,= I* #r$er t# attract m#re )#%icy !#%$ers8 t!e 0a*3 em)%#yees a*$ i*sura*ce a&e*ts
s!#u%$ )r#m)t%y atte*$ t# t!e e*7uiries #+ )#%icy!#%$ers5
1= A%% t!e )#%icy!#%$ers 4!# came u*$er tax 0rac3et s!#u%$ 0e )r#vi$e$ 4it! t!e
*ecessary $#cume*ts +#r c%aimi*& t!e tax c#*cessi#*5
2= Ba*3 sta++ s!#u%$ ma3e a* e++#rt t# e$ucate t!e )u0%ic a0#ut t!e s#cia% security
)r#vi$e$ 0y t!e i*sura*ce )#%icies5
1.= SBI Li+e a4are*ess cam)ai&* ca* 0e #r&a*i6e$ i* rura% a*$ semi ur0a* areas i*
#r$er t# e*c#ura&e sma%% e*tre)re*eurs t# )urc!ase %i+e i*sura*ce )#%icies5
11= I* #r$er t# e*c#ura&e %#4 a&e &r#u)s t# ta3e %i+e i*sura*ce )#%icies8 SBI Li+e may
c#me +#r4ar$ 4it! *#ve% a*$ i**#vative sc!emes at a %#4 )remium5
CONC.USION
@it! !u&e u*ta))e$ mar3et8 i*sura*ce sect#r is %i3e%y t# 4it*ess a %#t #+ activity > 0e it
)r#$uct i**#vati#* #r $istri0uti#* c!a**e% mix5 Ba*cassura*ce8 t!e emer&i*& $istri0uti#*
c!a**e% +#r t!e i*surers8 4i%% !ave a %ar&e im)act #* I*$ia* +i*a*cia% services i*$ustry5
BABASAB PATIL Page 1.(
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
Tra$iti#*a% met!#$s #+ $istri0uti*& +i*a*cia% services 4#u%$ 0e c!a%%e*&e$ a*$
i**#vative8 cust#mi6e$ )r#$ucts 4#u%$ emer&e5
Ba*3s 4i%% 0ri*& i* cust#mer $ata0ase8 %evera&e t!eir *ame rec#&*iti#* a*$ re)utati#* at
0#t! %#ca% a*$ re&i#*a% %eve%s8 ma3e use #+ t!e )ers#*a% c#*tact 4it! t!eir c%ie*ts8 4!ic! a
*e4 e*tra*t ca**#t8 as t!ey are *e4 t# t!e i*$ustry5 I* cust#mer )#i*t #+ vie48 a )%et!#ra
#+ )r#$ucts 4#u%$ 0e avai%a0%e t# !im5 "#re cust#mi6e$ )r#$ucts 4#u%$ c#me i*t#
existe*ce a*$ t!at t## a%% 4it!i* !a*$s reac!5 Success #+ t!e 0a*cassura*ce 4#u%$ m#st%y
$e)e*$ #* !#4 4e%% i*surers a*$ 0a*3s u*$ersta*$ eac! #t!erGs 0usi*esses a*$ sei6e t!e
#))#rtu*ities )rese*te$8 4ee$i*& #ut $i++ere*ces t!at are %i3e%y t# cr#) u)5
Ba*cassura*ce !as $eve%#)e$ its +#rm &ra$ua%%y 4!ere 0a*3s at +irst $# *#t carry ris3s
a*$ $istri0ute i*sura*ce )r#$ucts +#r a +ee a*$ )r#$uct $eve%#)me*t is %e+t t# i*sura*ce
c#m)a*y5 But &ra$ua%%y 0a*3s !ave assume$ ris3s re&ar$i*& $istri0uti#* assumi*& +u%%
res)#*si0i%ity5 But t!e )r#)er im)%eme*tati#* #+ 0a*cassura*ce is sti%% +aci*& s#me
)r#0%ems suc! as8 )##r ma*)#4er 4it! i* t!e 0a*3s8 $etac!me*t #+ 0ra*c! ma*a&er8
i*su++icie*t )r#$uct )r#m#ti#*8 ma*a&eria% $ata0ase ex)ertise8 i*a$e7uate i*ce*tives8
*e&ative attitu$e t#4ar$s i*sura*ce etc5 I* #r$er t# &et t!e +u%% 0e*e+it #+ it t!e +#%%#4i*&
ste)s s!#u%$ 0e ta3e*C>
i= Service $e%ivery mec!a*ism s!#u%$ 0e stre*&t!e*e$5
ii= K*#4%e$&e #+ tar&et cust#mer *ee$s s!#u%$ 0e $eve%#)e$5
iii= Exte*sive a*$ !i&! 7ua%ity trai*i*& s!#u%$ 0e e*sure$5
iv= Strate&ies c#*siste*t 4it! t!e 0a*3s visi#* s!#u%$ 0e $eve%#)e$5
v= Ba*3Gs $ata 0ase system s!#u%$ 0e ma$e +%exi0%e t# c#)e 4it! t!e c!a*&e5
S# #0servi*& t!e )r#&ress i* I*$ia8 )articu%ar%y 4it! re+ere*ce t# SBI8 0a*cassura*ce is
&ai*i*& acce)ta*ce &ra$ua%%y5 Ba*3 is c#*ver&i*& t#4ar$s a m#$e% #+ &%#0a% retai%
+i*a*cia% i*stituti#* #++eri*& a 4i$e array #+ )r#$ucts creati*& a #*e st#)>s!#) 4!ere
m#rt&a&es8 savi*&s8 )e*si#*s a*$ i*sura*ce )r#$ucts 4i%% 0e avai%a0%e5
BABASAB PATIL Page 1.'
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
T!ere are c#sts ass#ciate$ 4it! setti*& u) a success+u% 0a*cassura*ce *et4#r35 T!e
)r#)er trai*i*& #+ 0a*3 )ers#**e% t# u*$ersta*$ a*$ mar3et i*sura*ce sc!emes is vita% t#
t!e success #+ t!ese ve*tures5 T!ere is a%s# a *ee$ t# i*vest exte*sive%y i* IT a*$ #t!er
su))#rt systems t!at 4#u%$ )r#vi$e a* i*te&rate$ 90ac3>e*$: +#r 0a*3i*& a*$ i*sura*ce
services5 Re&u%at#ry issues *ee$ t# 0e a$$resse$ c#m)re!e*sive%y a*$ s#rte$ #ut
)articu%ar%y 4it! res)ect t# c#m)etiti#* a*$ mar3et structure )r#0%ems5 Aive* t!ese
c!a*&es8 0a*cassura*ce a*$ c#%%a0#rati#* 0et4ee* 0a*3s a*$ i*surers !as a %#*& 4ay t#
&# i* I*$ia5
RE1ERENCES
N5D5Ka)##r8 E%eme*ts #+ "erca*ti%e La48 La4 #+ I*sura*ce8 Pa&e Num0er '->
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BABASAB PATIL Page 1.-
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
@e0sitesC
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Artic%esC
? Ba*cassura*ce i* I*$ia S Ea*ar$!a* A Nai3
? SBI Li+eC T!e *e4 i*sura*ce 0e!em#t! S Fi$yut Kumar T
? Ba*cassura*ce S A0!ee3 Barua
? Ba*cassura*ceC T!e m#st c!a%%e*&i*& i*sura*ce Distri0uti#* c!a**e% 4it!
S)ecia% re+ere*ce t# SBI > Amites! C!#4$!ury @
ANNEXURE
:u!st$onna$! to 'an" sta##
15 Pers#*a% DataC
BABASAB PATIL Page 1./
BANCASSURANCE HAS BEEN APPLIED IN STATE BANK OF INDIA
NameC
Desi&*ati#*C
5 Are y#u i*v#%ve$ i* t!e activity #+ 0a*cassura*ceJ
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se%%i*&