SBI Life Insurance is the product of the amalgamation between two banking and insurance giants - the State Bank of India (SBI) and the BNP Paribas Cardif. While SBI owns 70.1% stake at the company, the life and property insurance branch of BNP Paribas Group that is BNP Paribas Cardif owns 26%. Founded in 2001 as a bancassurance company, SBI Life Insurance banks on its 18,000 strong network of branches, 80,000 door-to-door insurance advisors and access to 100 million accounts as leverage for furthering their goal.
|Percentage of Grievances Solved||99.98%|
|Claim Settlement Ratio||96.69%|
|Group Death Claims||98.95%|
|Percentage of Claims Rejected||0.85%|
|Solvency Ratio||2.04 (for the quarter ended March 2017)|
SBI Life Insurance has 16 glorious years of providing great service to its customer base. Over the years SBI Life have come up with various insurance plans and products for the benefit of their customers. They are constantly reinventing themselves providing the latest technology and tool to the policyholders to make insurance-buying a simpler process.
SBI Life offers a wide range of insurance products to satisfy all their customer’s requirements. These plans can be sorted into different categories such as Protection Plans, ULIP Plans, Savings Plans, Retirement Plans, Child Plans, Group Plans and Online Plans.
However, some plans come under two different categories given that they suit the requirement of both type of plans. The following table shows which plans falls under which category:
|Protection Plans||ULIP Plans||Savings Plans||Retirement Plans||Child Plans||Group Plans||Online Plans|
Protection plans are traditional insurance plans which are usually low cost and benefit the family of the insured in case of death/permanent disability.
|Plan name||Key Features|
|SBI Life - Smart Shield||
This is a participating term life plan that provides all around financial protection at affordable premium costs. It can be customized with riders for accidental death, critical care etc. The plan also awards you for maintaining a healthy lifestyle.
|SBI Life - Saral Shield||
Saral Shield, as the name suggests, makes getting an insurance easier with very low premiums and adequate coverage. This is a traditional term insurance plan that also doubles as a loan protection plan. There are also special discount on premium for women policyholders.
|SBI Life - Grameen Bima||
Grameen Bima is a micro-insurance term plan that benefits the poorer sections of the society, especially in the rural areas of the country. The aim of this plan is to provide some life cover to those who need it the most at the lowest premiums possible. The premium amount actually depends on the life coverage required.
ULIP or Unit Linked Insurance Plans double as investment ventures. These insurance plans are market linked, with the option to choose the degree of risk involved. The policyholder bears all the risk of the investment.
|Plan name||Key Features|
|SBI Life - Smart Privilege||
Smart Privilege Plan comes with the flexibility of having 8 diverse funds to switch between re-direct premiums to. The plan also allows for loyalty additions that adds to the fund value. It doesn’t levy any administration fee either.
|SBI Life - Smart Wealth Builder||
As the name suggests Smart Wealth Builder plan aims to build funds for the policyholders to cover both investment and insurance needs.
|SBI Life - Smart Wealth Assure||
This plan is a market-linked non-participating policy. The policyholder has to pay premium only once to avail of the benefits of this plan throughout the term of the policy.
|SBI Life - Saral Maha Anand||
This is a simple unit linked insurance product that helps policyholders manage their investments depending on their appetite for risk. The policy comes with 3 fund options to choose from, along with a guaranteed 30% addition to an annual premium.
|SBI Life - Smart Elite||
A unit-linked insurance product, that allows policyholders to pay premiums for limited period only. Premium can also be paid in a single payment, with the protection extending till the entire insurance term.
|SBI Life - Smart Power Insurance||
Another unit linked plan, Smart Power Insurance takes care of your insurance as well as investment needs. The product comes to you at reasonable premium and is in tune with the current investment scenario. It is a flexible product, which also takes care of your liquidity needs. Additional protection requirement, due to changing personal and/or financial circumstances, is also taken care by the product.
Savings insurance plans are mostly participating plans that provide the double benefit of both a life insurance cover and growth of funds, so that the money is put to work even if there’s no insurance claim ever made. Savings plan gives maturity benefits and bonuses along with the usual death benefits.
|Plan name||Key Features|
|SBI Life - Smart Bachat||
Smart Bachat is a Limited Premium Payment Term (LPPT) endowment insurance plan. The policy term exceeds the premium payment term, so a policyholder continues to enjoy life cover up to 10 years after the last premium amount is paid.
|SBI Life - Smart Women Advantage||
This is a participating traditional Endowment Plan, especially designed for women policyholders with added features for protection and security. The plan covers life and savings along with critical illness benefit. There is also optional benefits available for pregnancy and childbirth related issues.
|SBI Life - Smart Swadhan Plus||
Smart Swadhan Plus pays back the total basic premiums paid by the policyholders till maturity date, provided the policy is still in force. This is a non-participating, non-linked term plan with the option to choose a payment term as per the policyholder’s convenience.
|SBI Life - Smart Humsafar||
This is a joint participating insurance plan or married couples. The endowment plan provides both the husband and wife with insurance cover and comes with multiple rider options. The policy offers a guaranteed minimum bonus at 2.50% of the sum assured for the first 3 years.
|SBI Life - Smart Money Planner||
This is a non-linked individual insurance plan which guarantees periodic cash inflow, thus providing the policyholder with a avenue of financial support. This policy also allows for lower premium payment term while maintaining coverage throughout the term of the policy. The policy term is divided into Premium Payment Period, Growth Period and Benefit Payment Period.
|SBI Life - CSC Saral Sanchay||
This is a non-participating, individual, variable insurance plan that can be purchased from any authorised Common Service Centre under the National e-Governance Plan (NeGP) of Government of India. The policy comes with a lock-in period of 5 years. The policyholder can also choose to top up the initial premium amount to increase insurance cover.
|SBI Life - Smart Income Protect||
It is a participating insurance cum savings plan where the policyholder pays regular premiums for a term of 7, 12 or 15 years. After the premium period is over, the policyholder gets annual payouts for the next 15 years. They can also choose to receive the entire sum as maturity benefit at the end of the policy term. This policy also boasts of a wide variety of riders.
|SBI Life - Smart Guaranteed Savings Plan||
A traditional insurance plus savings plan which rewards its policyholders with a number of add-ons. The plans gives guaranteed additions at the end of each year depending on the premium amount. The premium payment tenure is a mere 7 years.
|SBI Life - Smart Money Back Gold||
It is a traditional insurance plan, participating in nature that pays a regular Survival benefit. It also assures the family of the insured is financially secure after he/she is no more by paying out the full Sum Assured along with Simple Reversionary Bonus, irrespective of the sum already paid as Survival benefit.
|SBI Life - Shubh Nivesh||
Shubh Nivesh is an endowment plan of a different kind as it offers Whole Life coverage option along with savings and a regular income.
|SBI Life - Saral Swadhan+||
Saral Swadhan+ is a non-participating, individual term insurance plan that gives the policyholder life coverage during the policy period, and the entire premium amount on maturity, provided he/she has paid a minimum of 3 annual premiums.
|SBI Life - Flexi Smart Plus||
This is a participating variable product that gives the policyholder the freedom to choose both their policy term and change their Sum Assured. The policy offers interim bonus, regular bonus and terminal bonus, and comes in two options - Gold and Platinum. This policy also allows partial withdrawal from the 6th year of the policy.
Retirement insurance plans are those especially designed to facilitate better returns for retirees. These plans provides for the future of the policyholders post retirement in the form of pensions.
|Plan name||Key Features|
|SBI Life - Saral Pension||
This is a traditional, participating, individual pension plan that provides life cover and death benefit along with guaranteed bonuses during the first 5 years. Plus a maturity benefit at the rate 0.25% p.a. compounded yearly. Since the returns are guaranteed, the policy is completely secure from the ups and downs of the market.
|SBI Life - Retire Smart||
Retire Smart plan is for a more matured populace, in terms of both age and financial stature. The policy guarantees a 101% return on the total premium paid, thus mitigating the market risk to a great extent.
Child insurance plans are especially designed to protect children of the policyholders in event of their unfortunate demise. These plans ensure that a child is provided for, especially in matters of education, in the absence of his/her parent.
|Plan name||Key Features|
|SBI Life - Smart Champ Insurance||
This is a participating, individual life insurance product designed especially for children to ensure their future education is taken care of. The policyholder can get him/herself assured against death and/or Accidental Total Permanent Disability, and their child nominee will get the Sum Assured plus Smart Bonus on attaining ages 18, 19, 20 and 21 in case the the event insured against occurs.
|SBI Life - Smart Scholar||
This is a unit-linked policy that helps the policyholder fulfill their responsibility as a parent by securing their child’s education. This policy offers 7 different fund options to invest in. The policy also has built in Accidental Death and AT&PD benefit.
Group plans are those insurance that benefit a group of people, not just individuals. These insurance plans are often bought by employers for their employees. Group plans can be further divided into Retirement Plans, Protection Plans, Loan Protection Plans and Micro Insurance Plans.
|Plan name||Key Features|
|SBI Life - Kalyan ULIP Plus||This is a unit linked plan that aims to provide retirement benefits to the employees in a group larger than 10 members. This is a fund-based non-participating policy which allows for premiums to be paid any time of the year. Age requirement for group members is between 18 and 79 years.|
|SBI Life - CapAssure Gold||This is a non-linked group plan that provides services like Leave Encashment, Gratuity and Superannuation. This policy is only available to employer – employees groups. The product comes with a free look period of 30 days wherein the employer can reevaluate the policy and return it if required.|
|SBI life - Swarna Jeevan||
This is an annuity plan that starts paying its members almost immediately depending on the option opted for. This plan is especially aimed towards corporate clients and offers Single and Joint annuity options. The minimum amount of annuity permissible is Rs1,200 p.a. per member.
|SBI Life - Gaurav Jeevan||
Gaurav Jeevan scheme is that allows for a government entity to transfer its liability for annuity payments for acquired land compensation to SBI Life. SBI Life’s inhouse financial experts invest the funds wisely to generate better annuity rates.
|SBI Life - Pradhan Mantri Jeevan Jyoti Bima Yojana||
This is not a unique SBI Life product, but is actually designed as per the criteria of the Indian Government on its pension scheme, the Pradhan Mantri Jeevan Jyoti Bima Yojana. This is a yearly renewable non-linked product that’s non-participating in nature. The insurance provides cover from the day the premium is paid till a year after. Although a group plan, it doesn’t require to be purchased by a group and can be availed individually.
|SBI Life - Sampoorn Suraksha||
This is another yearly renewable insurance plan offering affordable rates to groups like Employer-Employee, Professional/Affinity, Borrower/Depositor etc. The plan offers multiple options of determining Sum Assured like flat cover, times of salary or CTC, outstanding loan, bank deposit size etc. The policy also comes with a comprehensive list of riders - the most any SBI Life scheme offers.
|SBI Life - Suraksha Plus||
This is a non-linked group term insurance, non-participating in nature. This is a flexible product with wide range of premium cost and Sum Assured and Premium Payment options. This product can be used to provide coverage based on employee designation, salary etc.
|Group Loan Protection Products:|
|SBI Life - RiNn Raksha||
SBI Life’s RiNn Raksha is a credit insurance plan, which ensures that the life insured’s property remains with their family even after they are no longer there to pay off the loan installments. This policy cover a variety of loans such as car loans, housing loans, education Loans, agricultural loans and personal loans. A total of up to 3 loan applicants can be insured under this plan.
|Group Micro Insurance Plans:|
|SBI Life - Grameen Shakti||
This group insurance provides insurance to people funded by Micro Financial Institutions/NGO’s or who get loan from Banks/Financial Institutions through Self Help Groups. Thus, this plan caters to economically weaker people. Unlike other products, this insurance plan offers maturity benefits amounting to 50% of the premiums paid.
|SBI Life - Grameen Super Suraksha Plan||
Another plan aimed at the poorer sections of the society, this is however, a pure traditional term insurance plan. This means that it doesn’t offer any maturity benefit in addition to death benefits or Sum Assured. The premium costs of this plan are extremely low.
Online insurance are those which can be bought online via SBI Life’s website. SBI Life has a variety of online insurance options starting from traditional term insurance plans to wealth building plans to annuity plans, to cover almost all kinds of insurance requirements.
|Plan name||Key Features|
|SBI Life - eIncome Shield||
eIncome Shield is a traditional non-participating term insurance plan that can be purchased online via SBI Life’s website. The plan provides for a monthly payout as a means to replace a policyholder’s monthly income in event of their unfortunate demise. It also has 4 different options to facilitate an annual increase of that monthly income.
|SBI Life - eShield||
eShield plan is an individual participating term plan that comes tailored with multiple coverage options to suit the needs of different policyholders. This plan covers Accidental Death Benefit without any additional riders.
|SBI Life - eWealth Insurance||
This is a non-participating linked insurance plan purchasable online. The plan is designed to provide both insurance cover and wealth growth. This plan comes with Automatic Asset Allocation or AAA feature that invests the premium in equities in the initial years, slowly shifting to debt and money market. Thus, effectively lessening risks and producing greater returns.
|SBI Life - Annuity Plus||
This is a non-participating traditional annuity plan that provides for regular income from the age of 40 years to a policyholder. A wide range of annuity options ensures a source of supplementary income for a lifetime. The plan also provides for Accidental Death Benefit Rider as an option.
Claim Settlement Ratio:
The Claim Settlement Process with SBI Life is a 3 step process:
Step 1: Intimation of Claim
The first part of staking a claim is, of course, letting the insurer know that the insured is seeking claims. SBI Life can be intimated about the claim by one of the following channels:
Step 2: Submission of Required Documents (if any)
Different types of documents are required to process different claims. However, the documents required can be broadly classified as
Step 3: Final Settlement of Claim
State Bank of India offloaded 4% stake in SBI General Insurance to Premji Invest and Axis Asset Management Company for a total of Rs.4.81 billion.
The lender selling the stake is a part of its pre-offer valuation exercise by SBI General Insurance as it looks to get listed in the year 2019.
SBI General Insurance is a joint venture between Australia based Insurance Australia Group and State Bank of India. While the former continues to hold a 26% stake in the venture, the Indian bank’s stake has dropped down to 70% after selling 4% of its stake to Axis Asset Management Company and Premji Invest.
Out of the 4% stake sold, Premji Invest will hold a total of 2.35% stake, while the rest of the 1.65% will be held by Axis Asset Management Company.
SBI Chairman Rajnish Kumar said that SBI’s subsidiaries are doing extremely well and they see a huge potential for growth in the insurance sector which is still young in India. SBI, which is one of the leading banks in India are planning to sell a share in SBI Capital Market and SBI Card.
SBI, which announced the sale of the stake in August saw interests from KKR, Temasek Holdings, and Canada Pension Plan Investment Board (CPPIB) who are considered to be the three largest private equity investors in the world.
However, in order to ensure that the sale of the stake happens in a smooth manner, the State Bank of India will have to seek approval from the Insurance Regulatory and Development Authority of India (IRDAI).
J Sagar Associates were the legal advisors, while Kotak Mahindra Capitals were the financial advisors during the stake selling process.
SBI saw a 126% y-o-y growth in their net profit at Rs.1.13 billion for the quarter which ended on June 30, 2018.
SBI Life is one of the renowned life insurance companies in the country. The company has one of the best claim settlement ratios in the industry. Its claim settlement ratio for the fiscal year 2016-17 is as follows:
|No. of claims received||No. of claims approved||Claim settlement ratio|
Claim settlement ratio trend over the years:
The documents required to process any SBI Life Insurance Policy include:
Other acceptable documents are:
A policyholder can check their policy status via sending an SMS to 56161 or 9250001848. The text of the SMS has to be:
POLSTATUS (Policy Number).
Online Payment Options
SBI Life has different premium calculator for different products. Each calculate the premium somewhat differently than for other products. Some of the fields in the premium calculator are:
A. Yes, an SBI Life policy can be revived even after it lapses if it follows the following procedures:
A. In case a nominee misplaces the original Policy Document, he/she can submit an Indemnity Bond in lieu of the lost document. The bond should be executed on a notarized stamp paper along with a Surety Form that is properly executed.
A. The three main charges applicable on SBI ULIP Linked insurance plans are as follows:
Besides these 3, there are other charges which may be applicable only under certain conditions, such as:
A. To know the current value of your ULIP funds, you can SMS the following message to 56161 or to 9250001848:
“FV (Your Policy Number)”.
You can also find out about the current fund value by logging in to the ‘MyPortal’ policy management portal of SBI Life Insurance.
A. SBI Life generally settles a death claim within 10 to 15 days of receiving the claim on the policy, provided the claim doesn’t call for an investigation. As per the IRDAI regulations, SBI Life has to settle an insurance claim,
A. The following people can be benefited from an SBI Life Policy claim:
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The private life insurance company, SBI Life, recorded a profit-after-tax of Rs.870 crore in the first nine months of FY2018-19, a 13% increase from the year-ago period. The new business premium increased by as much as 32% from Rs.7,200 crore to Rs.9,470 crore. The gross written premium, on the other hand, increased by 34.5% from Rs.16,060 to Rs.21,660. Thus, the net worth of the insurer increased by 14% and assets under management by 20.2%. The thirteen-month persistency ratio, which indicates the total business the company without lapses of any policies in a year, increased from 81.51% to 83.33%. There was a marginal increase in the solvency ratio i.e. the cash inflow that helps fulfil short-term and long-term expenses, from 2.06% to 2.23%. In case of the total protection new business premium, the increase was from Rs.390 crore to Rs.1,060 crore – a 170.1% rise. However, the return of equity went down by a small margin i.e. from 17.1% to 16.7%. The value of shares ended at Rs.619.80 on BSE on Friday, 0.77% lower.
21 January 2019
As part of the recent ‘Main Se Hum’ campaign launched by the Life Insurer, SBI Life Insurance along with WATConsult has launched a brand-new innovative campaign – what they have labelled as a digital programmatic out-of-home - the first of its kind. The goal of the campaign that was launched as a New Year’s special was particularly to bridge the gap between online and offline for its customers. According to SBI Life Insurance, for a long-time marketers have been trying to bridge the gap between offline and online audience, to holistically target consumers. Using the existing advertising ecosystem, the programmatic digital out of home campaign (DOOH) successfully bridges the offline to online audience gap, by simple yet intelligent application of technology.” He further added, “At SBI Life we take great pride in being the early adopters of upcoming technologies and are extremely thrilled to start 2019 on an innovative note. We believe this will mark a transformation in the evolution of digital marketing. The founder of WATConsult said that SBI Life Insurance is exploring dynamic avenues to spread its message and the recent campaign is a revolution in the outdoor industry. They said that the campaign will help connect audiences to the digital world.
10 January 2019
SBI Life Insurance has entered into a new bancassurance contract with Syndicate Bank. As per this agreement, SBI Life would provide financial planning and life insurance solutions to customers of Syndicate Bank. Sanjeev Nautiyal, MD and CEO of SBI Life, and Mrutyunjay Mahapatra, MD and CEO of Syndicate Bank, signed the agreement to make it official.
SBI Life offers a diverse range of insurance products that provide protection, savings, and wealth creation benefits for customers. Customers of Syndicate Bank will now be able to access these products from SBI Life. This agreement will provide higher market penetration for SBI Life as it will now to able to access the customers of 3,000 branches of Syndicate Bank.
3 January 2019
SBI Life Insurance made it known publicly on Monday, through a press release, that it has signed a bancassurance pact with the public-sector bank, Allahabad Bank. The bancassurance partnership will make way for customers of Allahabad bank to achieve complete financial protection. Individuals will now have access to 3,238 branches from the partnership. This is considered one of the biggest bancassurance deals in the country which will provide customers with financial services form a banking institution as well as access to SBI Life Insurance company’s complete range of insurance products. The bancassurance agreement was signed by the two entities in the presence of the Managing Director and Chief Executive Officer of Allahabad Bank, Mallikarjuna Rao along with the Managing Director and Chief Executive Officer of SBI Life, Sanjeev Nautiyal. Rao said that the bank’s aim is to offer life insurance products to clients under one roof enhancing the non-interest income made by the bank. Nautiyal believes that the customers of Allahabad can directly access SBI’s life insurance products that offer protection, a platform to create wealth, as well as save one’s income through the new partnership.
2 January 2019
SBI Life Insurance Company has taken initiatives to educate and improve the standard of living of the tribal girls who reside at Saraswati Niliyam Tribal Girls Hostel in Guna. The insurance company will take care of the cost of the girls' education and their other needs. SBI has already handed a cheque the amount of which will be used to fund the education and other needs of these tribal girls. The insurance company has also made a donation to Sewa Bharti which is a non-profit entity and takes care of the poor and needy tribal people leaving in the remote areas of Madhya Pradesh.
6 December 2018
With SBI Life Insurance looking to take their brand to the next step and to more importantly spread awareness on the need for citizens in the country to avail a life insurance policy to offer financial stability to one’s family, SBI Life Insurance joined hands with popular cup branders CupShup. CupShup has been making waves across the country with regard to their marketing techniques and SBI Life has looked for their support to spread their latest campaign Main Se Hum. The campaign will be printed on paper tea cups by CupShup and already 8 lakh cups have been printed and distributed to 75 corporate houses across the country. According to SBI’s campaign head, Sharma said that since India runs on chai, the strategy adopted by SBI to spread awareness of their campaign will encourage consumers to live happily and responsibly. Commenting on the campaign, the CEO of CupShup said that their vision of cup marketing has clicked with SBI Life Insurance and since tea is a social habit of Indians, the engagement with paper cups will help spread SBI Life’s latest campaign.
15 November 2018
SBI Life Insurance registered an increase of 30% in their new business premium. The new business premium surged from Rs.4,290 crore it registered in the H1 for the FY 2018 to end at Rs.5,570 crore in the H1 for the FY 2019.
The insurance company has established a sharp focus on protection, as the total new business premium has jumped by 141.7%. The total new business premium registered by SBI Life Insurance in the H1 for the FY 2019 is Rs.590 crore as compared to Rs. 240 crore it recorded on the H1 for the FY 2018.
24 October 2018
SBI Life Insurance saw its second-quarter net profits for the FY 2019 rise by 11.11% year-on-year (y-o-y) to Rs.250.53 crore.
The gross premium income of the insurance company stood at Rs.7,685 crore for the second quarter, an increase of 40.8%. The net premium income for the second quarter increased by 42.3% y-o-y to stand at Rs.7,622 crore. It clearly beat the estimates projected by the analysts. The net premium income was expected to end Rs.6,479 crore.
The net commission rose by 19.4% y-o-y to end at Rs.319 crore. The benefits paid during the second quarter for the FY 2019 increased marginally by 3.7% y-o-y to end at Rs.2,768 crore. The Net Profit after Tax jumped by 11.1% y-o-y at Rs.215 crore.
22 October 2018
The French insurance company, BNP Paribas Cardif, has appointed 3 banks to look for buyers who would want to purchase a stake in SBI Life Insurance Co. Ltd. The stake sale is estimated to be around $500 million. The insurer has a 22% stake while State Bank of India (SBI) has a 62.1% stake in SBI Life. It is believed that BNP Paribas has planned to trim the shareholding in the insurer in order to meet the SEBI guidelines. According to the SEBI guidelines, a company is required to have a 25% public float to be listed. If BNP Paribas sells enough stake to make the total shareholding of the promoters equal to 75%, the company will be eligible to be listed. The current shareholding of the two promoters is at 84%. State Bank of India, on the contrary, has no plans to sell stake. BNP Paribas has appointed its investment banking arm, along with Citigroup and Kotak Mahindra Capital, to look for buyers who are willing to invest in the state-run life insurance company. SBI Life Insurance is a partnership between BNP Paribas and State Bank of India and was established in the year 2001.
21 September 2018
State Bank of India (SBI) Life Insurance launched a campaign named ‘Main se Hum’ that focuses on the protection plans offered by the company and its importance in the lives of young individuals in the country. The campaign is being carried out on TV, print media, outdoor media, as well as social and digital media. The campaign presents insurance as a positive responsibility that millennials are prepared to take up in order to protect themselves and their near and dear ones. The campaign highlights the transition of a person from being a single individual to having a family. The responsibilities at this stage increase and the protection of one’s loved ones becomes a priority. The campaign emphasises the fact that insurance products not only aid the family financially but also give peace of mind to the person. The campaign is being driven by Mullen Lintas and the chairman, Amer Jaleel, says that they dug deep into the protector’s thinking and based their work on the change in behaviour from what it is like without having the responsibility of family members to having a family that one has to protect.
20 September 2018