FORMULATING PAN INDIA MARKETING STRATEGIES FOR BIRLA SUN LIFE INSURANCE

Abstract

Introduction to Insurance Industry Insurance may be described as a social device to reduce or eliminate the risk to life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individuals. The risk can be insured against fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Definition of Insurance “Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of a certain event.” Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of insurance, a large number of people exposed to a similar riskmake contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events are made good in this particular era of insurance area. General definition: In the words of John Magee, "Insurance is a plan by which a large number of people associate themselves and transfer to the shoulders of all, risks that attach to individuals.” Fundamental definition: In the words of D.S. Hansel, “Insurance may be defined as a social device providing financial compensation for the effects of misfortune, the payment being made from the accumulated contributions of all parties participating in the scheme. Insurance companies may be classified into two groups: Life insurance companiessell life insurance, annuities, and pension products. Non-life, General, or Property/Casualty insurance companies, which sell other types of insurance.