A PROJECT On:

“Study on social security and welfare scheme in Life Insurance Corporation and State Bank of India”

Prepared By: Ankit Michael SamuelScholar No.: 102103107MBA 4th Sem

ObjectiveTo analyze the Social Security

and Welfare schemes of the State bank of India and Life Insurance Corporation of India under the parameters of Awareness, Satisfaction, Welfare and Security and interpret the results in a pie chart within the scale of 100 percentage.

What is Social Security?

Social security is primarily a social insurance program providing social protection or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:

social insurance, where people receive benefits or services in recognition of contributions to an insurance program. These services typically include provision for retirement pensions, disability insurance, survivor benefits and unemployment insurance.

income maintenance, mainly the distribution of cash in the event of interruption of employment, including retirement, disability and unemployment

services provided by administrations responsible for social security. In different countries this may include medical care, aspects of social work and even industrial relations.

More rarely, the term is also used to refer to basic security, a term roughly equivalent to access to basic necessities—things such as food, clothing, housing, education, money, and medical care.

The right to social security is recognized in the Universal Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights.

Employee Provident Fund Scheme:

Employees' Provident Fund Scheme takes care of following needs of the members: (i) Retirement (ii) Medical Care (iii) Housing(iv) Family obligation (v) Education of Children (vi) Financing of Insurance Polices

Employee State Insurance Scheme

Employees' State Insurance scheme (ESI, Hindi: कर्म�चा�री� री�ज्य बी�र्म�) is a self-financing social security and health insurance scheme for Indian workers. For all regular employees earning less than 15,000 per month salary, the employers and employees contribute a fixed percentage of the salary. This fund is managed by the ESI Corporation, which oversees the provision of medical and other benefits to the employees, through its large network of dispensaries and hospitals throughout India.

Life Insurance Corporation of India (LIC) (Hindi: भा�रीती�य जी�वन बी�र्म� निनगर्म) is the largest state-owned insurance group in India, and also the country's largest investor. It is fully owned by the Government of India. It also funds close to 24.6% of the Indian Government's expenses. It has assets estimated of 13.25 trillion (US$264.34 billion). It was founded in 1956 with the merger of 243 insurance companies and provident societies.

Group Insurance Scheme

LIC presents Group Insurance Scheme for employer-employee as well as non- employer-employee Groups for covering the life risk in case of unfortunate death of these earning members.

Nature of the Scheme : Group (Term) Insurance Scheme provides life insurance

protection to members of various groups. Underwriting and Administration of the scheme is on group basis; hence the cost is very low. The sum assured is allowed up to a certain limit without any medical evidence subject to some simple insurability conditions. The sum assured beyond that limit is provided subject to satisfactory medical and other reports. Minimum and maximum age limit for eligibility of Group cover is 18 years & 65 years.

Benefits :

In case of death of a member covered under the scheme, the sum assured is payable to the nominee.

If double accident benefit option is exercised, additional sum assured is payable in case of death due to accident

Similarly critical illness cover also may be availed to receive lumpsum benefit in case of some major illness

Jana Shri Bima Yojna Features The objective of the scheme is to provide life insurance protection to the rural

and urban poor persons below poverty line and marginally above the poverty line.

Siksha Sahyog Yojna Features: This is a scholarship scheme launched on 31.12.2001 for the benefit of children

of members of Janashree Bima Yojana.

Benefit:Scholarship of Rs 300/- per quarter per child will be paid for maximum period of 4 years.The benefit is restricted to two children per member(family) only.Aam Admi Bima Yogna

In a rural landless household, when everyday living is a struggle, it is difficult to face life with a smile. And it becomes even more difficult when the future of your family is uncertain.

AAM ADMI BIMA YOJANA, a prestigious scheme of the Central and State / Union Territory Governments and administered by LIC brings a ray of hope and smile to these households.

State Bank of India (SBI) (NSE: SBIN, BSE: 500112, LSE: SBID) is the largest banking and financial services company in India by revenue, assets and market capitalization. Its a state-owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2011, it had assets of US$ 370 billion with over 13,000 outlets including 150 overseas branches and agents globally. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta and Bank of Bombay to form Imperial Bank of India, which in turn became State Bank of India. The government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India. SBI is ranked #292 globally in Fortune Global 500 list in 2011.

SBI Life - Flexi Smart Insurance

Introduction:

SBI Life – Flexi Smart Insurance, an Individual, Non-Participating traditional life insurance cum savings plan, which helps you in fulfilling all your dreams. It gives you flexibility to adapt to your ever-changing needs, while assuring guaranteed benefits to take care of your savings.

Key Features: Guaranteed Interest Rate: Guaranteed interest rate of 2.50% p.a., will

be guaranteed for the entire policy term. Interim Interest Rate: An interim interest rate will be declared at the

beginning of every financial year, which will be equal to or more than Guaranteed Interest Rate and will be guaranteed for that year.

Additional Interest Rate: An additional interest rate may also be declared, as on 31st March, every year, based on the performance of the Company.

Your policy account will be credited with interim interest rate and additional interest rate, if any

Superior Flexibilities: Flexibility in premium frequency -> Yearly, Half Yearly, Quarterly and

Monthly. Option of premium holiday during the policy term. Enjoy complete flexibility to increase or decrease your Sum Assured. Option to choose sum assured multiplier factor (SAMF). Option to boost your investments through Top-ups. Triple Plan Benefit of guaranteed interest rate, additional interest rate

and superior flexibilities.

What is SBI Life - Hospital Cash:

This plan helps you keep your savings untouched in case of medical emergencies by paying you a fixed Daily Hospitalization Cash Benefit and an ICU benefit that is twice of daily cash benefit, irrespective of your hospital bill. This amount helps to pay for any kind of expenses incurred before, during or post hospitalization.

We care for you and your loved ones! To aid your family in crisis we provide you with Family Care Benefit feature and family discount benefit.

Key Features:

100% payout from day one of hospitalization without any deductible

Coverage of Pre-existing diseases after 2 years

Guaranteed coverage up to 75 yearsPremium guarantee for 3 yearsEnhanced sum assured and increased

payouts on each policy anniversary in case of No claim

Tax benefit on premium paid under sec 80 D of IT Act^.

SBI Life Smart Performer

 Introduction:

The equity market may have its ups and downs, but you now have a protective shield that will safeguard your investments, while providing upside potential. SBI Life brings you ’Smart Performer’, a unique Unit Linked, Non Participating insurance product that offers you the twin benefits of ’Higher than the Highest’ of the daily NAV Guarantee and the prospect of market upside. What’s more, it also allows you to protect your gains through Automatic Rebalancing facility and offers you a choice of Single and Limited Premium Payment options.

Key Features:

Guarantee at maturity based on ’5% Higher than Highest Guaranteed NAV’ during the first seven years or prevailing NAV at Maturity, whichever is higher, subject to conditions#.

Enjoy the best of both worlds - Guarantee only or Guarantee and Market Upside through our unique Plan offerings - ‘Secure Plan’ and ‘Secure N Grow Plan’ respectively

‘Automatic Rebalancing’ to Lock-in your gains Convenience through single premium (SP) or 5 year Premium

Paying Term (PPT) Life Insurance coverage with minimum Sum Assured of 10

times or 7 times of your Annualised Premium (AP), based on your age.

Liquidity through Partial Withdrawal(s) Option to customize the product with Accidental Death

Benefit Attractive Tax benefits under the Income Tax Act, 1961,

subject to conditions **

SBI Life Swadhan (Group)Introduction: Swadhan (Group) is a Non

Participating Group Term Insurance Plan with Return of Premium. It is a simple and easy solution which offers dual benefits of life cover protection in the event of death and refund of premium in case of survival up to the end of the cover term.

Key Features:

Eminently affordable premium rates Complete protection during cover term Refund of part/full basic premiums paid, depending

on the Term of insurance Cover Choice with regard to Term of Insurance Cover and

Sum Assured Flexibility to choose appropriate premium payment

modes Simple and convenient joining process Hassle free and efficient claims settlement   Revival facility is made available within 2 years from

the first unpaid premium due date.

Analysis and Interpretation:

Analysis: The Responses of the Questions were

collected and the frequency of each option was calculated and a percentage of each option out of 100 was represented in interpretation.

 Interpretation: For representations of the responses the

Pie chart are used to show the distribution of the responses of each option out of 100 percentage.

Life insurance Corporation of India

58%25%

17%

Awareness

Up to Date Knows a little bit Not Updated

6%

50%38%

6%

Satisfaction

Highly Satisfied SatisfiedAverage Low

13%

57%

25%

5%

Welfare

Highly Satisfied Satisfied Average Low

6%

50%25%

19%

Security

Highly Satisfied SatisfiedAverage Low

State Bank of India

33%

42%

25%

Awareness

Up to Date Knows a little bit Not Updated

9%

55%

21%

14%

Satisfaction

Highly Satisfied SatisfiedAverage Low

10%

83%

3%5%

Welfare

Highly Satisfied Satisfied Average Low 5%

45%38%

13%

Security

Highly Satisfied SatisfiedAverage Low