A PROJECT REPORT ON
A COMPARITIVE STUDY OF INVEST SHIELD LIFE OF ICICI PRUDENTIAL WITH OTHER INSURANCE COMPANIES
Dissertation Subitte! Subitte! to "an#a$ore Uni%esit& to'ar!s t(e Partia$ Fu$)i$$ent Fu$)i$$ ent o) Re*uireent )or t(e A'ar! o)
MASTER OF "USINESS ADMINISTRATIO ADMINISTRATION N To
"AN+ALORE UNIVERSITY
"Y
Mr,IRANNA SHIVALIN+APPA, Re#, No,- ./ACCM0.12, Under the guidance of "AN+ALORE
CONTENTS
List o) Tab$es Chapter No.
Title
1.
Page No.
Introduction. a. Introd Introduct uction ion to to Finan Finance. ce. b. Invest Investmen mentt alter alterna nativ tives es
c. Insurance
Regulatory
and
Development Act (IRDA). d. Composi Composition tion Of Insur Insuranc ance e Indust Industry ry e. Histo History ry of Insur Insuran ance ce f. Insuranc Insurance e in India India – A histo historica ricall prosp prospecti ective ve g. Life Life Ins Insura urance nce Mare Marett h. !inds !inds of Insur Insuran ances ces
i. "eed "eed for for the the Insu Insura ranc nce e 2.
Research Design. a. Intr Introd oduc ucti tion on b. #tate #tatemen mentt of of the the prob problem lem c. Ob$e Ob$ecti ctive ve of the study study d. #cop #cope e of the the stud study y e. Operati Operational onal defin definitio itions ns of the the concep conceptt f. Meth Method odol olog ogy y of of rese resear arch ch %ype of &esearch #ample si'e %ools of data collection Method of analysis g. Limita Limitatio tions ns of of the the study study h. Chapter scheme Company Profile. • • • •
3. 4.
".
Presentation and nalysis of of Data ! Interpretation. #ummary of $indings% Conclusion and Recommendations. &I&'I()RP*+. NN,-R,. •
(uestionnaire.
%able "o. %abl %able e *.+ *.+ %able *.
)age "o.
TITLE
#ho, #ho,in ing g Min Minim imum um and and MaMa-im imum um Age Age of of Inv Inves esto tor r
#ho,ing Minimum and Ma-imum term for Investment
%abl %able e *./ *./ %abl %able e *.0 *.0 %abl %able e *.1 *.1 %abl %able e *.* *.* %able *.4
%able *.5
#ho, #ho,in ing g the the sum sum ass assur ured ed by the the ins insur ura ance nce companies #ho, #ho,in ing g the the matu maturi rity ty bene benefi fitt to to inv inves esto tors rs #ho, #ho,in ing g the the 2eat 2eath h bene benefi fitt to inve invest stor ors s #ho, #ho,in ing g the the 3ith 3ithdr dra, a,al al bene benefi fitt to to inv inves esto tors rs
#ho,ing the Contribution by investors #ho,ing the 6-tended life coverage to investors
%able *.7
#ho,ing the Fle-ibility to increase or decrease the contribution by investors
%able *.+8
#ho,ing the Investment options to investors
%able *.++
#ho,ing the #urrender value
%able *.+
#ho,ing the Automatic )remium payment to investors
%able *.+/
#ho,ing the Increase 9 decrease of death benefit to investors
%able *.+0 %able *.+1 %able *.+* %able *.+4
#ho,ing the Additional credits to investors #ho,ing the fle-ibility of %op:up to investors #ho,ing the fle-ibility of #,itch to investors S(o'in# Initia$ 3(ar#e to t(e in%estors
%able *.+5 %able *.+7
#ho,ing Admin charge to the investors #ho,ing Fund management charge to the investors
%able *.8
#ho,ing &iders benefit to the investors
%able *.+
#ho,ing the best insurance company in the unit:lined plan
List of Graphs
)raph No.
TITLE
#ho,ing Minimum and Ma-imum Age of Investor Graph 6.1
;raph *. ;raph *./ ;raph *.0 ;raph *.1
#ho,ing Minimum and Ma-imum term for Investment #ho,ing the Contribution by investors #ho,ing the Investment options to investors
;raph *.*
#ho,ing the Additional credits to investors
;raph *.4
#ho,ing the best insurance company in
#ho,ing the #urrender value
the unit:lined plan
CHAPTER- 4
Page No.
INTRODUCTION. In the wonderul world o !nance there are w!de "ar!ty o cho!ces ava!la#le one needs to understand the d!erent !nvestment alternat!ves such as stoc$s% #onds% government secur!t!es% #an$ !&ed depos!ts% pr!vate company depos!ts ' !nsurance. The goal !s to help reduce r!s$ and enhance returns.
!e Insurance !s a contract or payment o a sum o money to the person assured (or a!l!ng h!mher% to the person ent!tled to rece!ve the same) on the happen!ng o the event !nsured aga!nst. Usually the contract prov!des or the payment o an amount on the date o matur!ty or at spec!!ed dates at per!od!c !ntervals or at unortunate death% ! !t occurs earl!er.
At ICICI *UD+NTIA% there !s constantly str!ve to understand !nvestors need and prov!de solut!ons that help them to plan there uture #etter. In $eep!ng w!th that endeavor% ICICI present IN"+,T ,-I+D I+% regular prem!um un!t l!n$ed plan w!th cap!tal guarantee. The spec!!c o#/ect!ves o the present study are To study the structure o !nsurance company and !nsurance mar$et% To study the e&!st!ng #us!ness o !nsurance !ndustry% To study the !nvestors0 #ehav!or regard!ng !nsurance% To study the percept!on level o !nsurance compan!es towards customers% To study the w!de spectrum o !nsurance compan!es w!th a s!ngle !nvestment pol!c!es% To evaluate the insuran3e mar$et under Un!t1l!n$ed *lan w!th Cap!tal 2uarantee. ICICI g!ves more opportun!ty to the !nvestors !n Age actor as !t starts rom the #!rth o the ch!ld. The ,urrender value !n ICICI has a greater value as !t starts ater 3st year% wh!ch !s 345. In 6+T I+ the +&tended l!e coverage ac!l!ty !s most #ene!c!al as !t covers t!ll the age o 77. The le&!#!l!ty to Increase Decrease the Investors contr!#ut!on
!s outstand!ng !n 6+T I+. The und management charges !n 8IRA ,UNI+ are more aorda#le #y an !nvestor.
Insurance has a un!9ue eature% !.e.% r!s$ cover or l!e. +ven through return !s !n !nsurance% !t !s !mportant !nstrument !n !ts portol!o to ul!ll the monetary loss o the !nvestors towards the!r dependants. ong1term pol!c!es are #etter than med!um term and short1term pol!c!es or #etter uture arrangements. 8y entry o pr!vate !nsurance players !n the mar$et% there are new products% wh!ch also ta$e care o your !nvestments.
Company should concentrate on the :;1<4 year age group% #ecause th!s !s the t!me when people show more !nterest !n !nvestment.
There should #e some
arrangement o telecast!ng the!r products !n reg!onal telev!s!on !n order to reach the rural people. 6ore reputat!on !s needed or the company% as !nsurance pol!c!es are sold on the #as!s o rel!a#!l!ty.
Introduction to finance !nance !s one o the ma/or elements% wh!ch act!vates the overall growth o economy. !nance !s the l!e#lood o econom!c act!v!t!es. The study o #us!ness !nance !s concerned w!th the prov!s!on% low and use o !nance w!th!n a #us!ness organ!=at!on and w!th demand or% and supply o% unds or #us!ness w!th!n the economy as a whole. unds or a #us!ness are o#ta!ned rom a var!ety o sources and !t may #e class!!ed !n two ma/or categor!es namely !nternal and e&ternal. Internal unds are o#ta!ned #y retent!on o a port!on o the company0s own revenue stream. +&ternal !nanc!ng% on the other hand% representat!on a transer o cap!tal unds to the #us!ness orm other #us!ness un!ts or !nd!v!duals or !nst!tut!ons !n the orm o loans or add!t!onal ownersh!p cap!tal.
FINANCIAL MANAGEMENT !nanc!al management emerged as a d!st!nct !eld o study at turn o the country. Its evolut!on may #e d!v!ded !nto three #road phases> the trad!t!onal phase% the trans!t!onal phase and the modern phase. ,!nce the #eg!nn!ng o the modern phase many s!gn!!cant and sem!nal developments have occurred !n the !elds o cap!tal #udget!ng% cap!tal structure theory% e!c!ent mar$et theory% opt!on pr!c!ng theory% agency theory% ar#!trage pr!c!ng theory% valuat!on models% d!v!dend pol!cy% wor$!ng cap!tal management% and #ehav!oral !nance.
5EY ACTIVITIES OF FINANCIAL MANA+EMENT •
!nanc!al analys!s% plann!ng and control
•
6anagement o !rms assets structure
•
6anagement o !rms !nanc!al structure
SCOPE OF FINANCE FUNCTION> •
+st!mat!ng !nanc!al re9u!rement
•
Dec!d!ng cap!tal structure
•
,elect!ng a source o !nance
•
*roper cash management
•
,elect!ng a pattern o !nvestment
•
Implement!ng !nanc!al controls
THREE MAIN FINANCIAL DECISIONS •
Investment dec!s!on
•
!nanc!ng dec!s!on
•
D!v!dend dec!s!on
•
-av!ng d!scussed $ey act!v!t!es o !nanc!al management% scope o !nance unct!ons and three ma!n !nanc!al dec!s!ons !t !s necessary to concentrate on THE
INDIAN FINANCIAL SYSTEM wh!ch !s a #ac$ #one to all the a#ove.
FUNCTIONS OF FINANCIAL SYSTEM :
It prov!des a payment system or the e&change o goods and serv!ces
It ena#les the poll!ng o unds or underta$!ng large1scale enterpr!se
It prov!des a mechan!sm or spat!al and temporal transer o resources
It prov!des a way or manag!ng uncerta!nty and controll!ng r!s$
It generates !normat!on that helps !n co ord!nate decentral!=ed dec!s!on ma$!ng It helps !n deal!ng w!th the pro#lem o !normat!onal asymmetry
Investment alternatives
As an !nvestor you have a w!de array o !nvestment avenues ava!la#le to you. ,acr!!c!ng some r!gor% #ew!lder!ng range o !nvestment alternat!ves !s ava!la#le. They all !nto two #road categor!es% v!=. !nanc!al assets and real assets are paper (or electron!c) cla!ms on some !ssuer such as the government or a
corporate #ody. The !mportant !nanc!al assets are e9u!ty shares% corporate de#entures% government secur!t!es% and depos!t w!th #an$s% mutual und shares% !nsurance pol!c!es% and der!vat!ve !nstruments. Real assets are represented #y tang!#le assets l!$e a res!dent!al house% a commerc!al property% an agr!culture arm% old% prec!ous stones% and art o#/ects. As the economy advances% the relat!ve !mportance o !nanc!al assets tends to !ncrease. O course% #y and large the two orms o !nvestment o !nanc!al assets tend to !ncrease. O course% #y and large the two orms o !nvestments are complementary and not compet!t!ve. or sens!#le !nvest!ng% you should #e am!l!ar w!th the character!st!cs and eatures o var!ous !nvestment alternat!ves #eore you. These may #e class!!ed as shown #elow chart.
In%estent a$ternati%es
Investment alternatives
"on: mareting
Mutual fund &eal
Money maret
Financial derivatives
)recious Life 6=uity shares insurance ob$ects
THE FINANCIAL SYSTEM Finan3ia$ De os!ts,hares
,uppl!ers o unds Ind!v!dual 8us!nesses 2overnments
Commerc!al 8an$s Insurance Compan!es Institutions 6utual unds *rov!dent unds Non18an$!ng !nanc!al Compan!es
*r!vate *lacement
Demanders o unds Ind!v!dual 8us!nesses 2overnments
!nanc!al 6ar$ets 6oney 6ar$et Insuran3e Re#u$ator& an!Cap!tal De%e$o6ent Aut(orit& 7IRDA8 6ar$et
On the recommendat!on o Ma$(otra Coittee% an Insurance Regulatory Development Act 7IRDA8 passed #y Ind!an *arl!ament !n 377<.
MISSION Its ma!n a!m !s to act!vate an !nsurance regulatory apparatus essent!al or proper mon!tor!ng and control o the Insurance !ndustry. To protect the !nterests o the pol!cyholders% to regulate% promote and ensure orderly growth o !nsurance !ndustry and or matters connected therew!th or !nc!dental thereto. Due to th!s Act several Ind!an pr!vate compan!es have entered !nto the !nsurance mar$et% and some compan!es have /o!ned w!th ore!gn partners.
Reorms !n the Insurance sector were !n!t!ated w!th the passage o the IRDA 8!ll !n *arl!ament !n Decem#er 3777. The IRDA s!nce !ts !ncorporat!on as a statutory #ody !n Apr!l :444 has ast!d!ously stuc$ to !ts schedule o ram!ng regulat!ons and reg!ster!ng the pr!vate sector !nsurance compan!es. The other dec!s!ons ta$en s!multaneously to prov!de the support!ng systems to the !nsurance sector and !n part!cular the l!e !nsurance compan!es were the launch o the IRDA0s onl!ne serv!ce or !ssue and renewal o l!censes to agents. The approval o !nst!tut!ons or !mpart!ng tra!n!ng to agents has also ensured that the !nsurance compan!es would have a tra!ned wor$orce o !nsurance agents !n place to sell the!r products% wh!ch are e&pected to #e !ntroduced #y early ne&t year. ,!nce #e!ng set up as an !ndependent statutory #ody the IRDA has put !n a ramewor$ o glo#ally compat!#le regulat!ons. In the pr!vate sector 3: l!e !nsurance and ? general !nsurance compan!es have #een reg!stered. ,ect!on 3@ o IRDA ACT% 3777 lays down the dut!es% powers and unct!on o IRDA. ,u#/ect to the prov!s!on o th!s act and any other law or the t!me #e!ng !n orce% the author!ty shall have the duty to regulate% promote and ensure orderly o the !nsurance #us!ness and re !nsurance #us!ness.
The Poer! and function of the authorit" !ha## inc#ude$
Issue to the appl!cant a cert!!cate o reg!strat!on% renew% mod!y% w!thdraw% suspend or cancel such reg!strat!on. *rotect!on o the !nterests o the pol!cy holders !n matters concern!ng ass!gn!ng o pol!cy% nom!nat!on #y pol!cy holders% !nsura#le !nterest% solv!ng !nsurance cla!m% surrender value o pol!cy and terms and cond!t!ons o contract o !nsurance. ,pec!y!ng re9u!s!te 9ual!!cat!ons% code o conduct and pract!cal tra!n!ng or !nter med!ators or !nsurance !ntermed!ately and agents. ,pec!y!ng re9u!s!te 9ual!!cat!ons% code or surveyors and loss assessors. evy!ng ees and other charges or carry!ng out the purposes o th!s act. *romot!ng e!c!ency !n the conduct o !nsurance and re!nsurance #us!ness. *romot!ng and regulat!ng proess!onal organ!=at!ons connected w!th the !nsurance and re !nsurance #us!ness. Call!ng or !normat!on rom% underta$!ng !nspect!on o% conduct!on en9u!res and !nvest!gat!ons !nclud!ng
aud!t o
the
!nsurers%
!ntermed!ar!es%
!nsurance
!ntermed!ar!es and other organ!=at!ons connected w!th the !nsurance #us!ness. Control and regulat!on o the rates% advantages% terms and cond!t!ons that may #e oered #y !nsurers !n respect o general !nsurance #us!ness not so controlled and regulated #y the Tar! Adv!sory comm!ttee us sect!on ?@U o the Insurance Act% 37< (@ o 37<). ,pec!y!ng the orm and manner !n wh!ch #oo$s o account shall #e ma!nta!ned and statement o accounts shall #e rendered #y !nsurers and other !nsurance !ntermed!ar!es. Regulat!ng !nvestment o unds #y !nsurance compan!es. Regulat!ng ma!ntenance o merg!ng o solvency. Ad/ud!cat!on o d!sputes #etween !nsurers and !ntermed!ar!es or !nsurance !ntermed!ar!es. ,uperv!s!ng the unct!on!ng o the tar! adv!sory comm!ttee. ,pec!y!ng the 5 o prem!um !ncome o the !nsurer to !nance schemes or promot!ng and regulat!on proess!onal organ!=at!ons reerred to !n clause (). ,pec!y!ng the 5 o l!e !nsurance #us!ness and general !nsurance #us!ness and general !nsurance #us!ness to #e underta$en #y the !nsurer !n the rural or soc!al sector.
+&erc!s!ng such other powers as may #e prescr!#ed.
IRDA also try to generate the awareness and regulate the l!e !nsurance sector. or th!s /o# government also use the pr!nt med!a v!=. newspapers and maga=!nes etc. to or pu#l!c !nterest. ,ome o the advert!sement cutt!ngs are attached !n anne&ure at end o the pro/ect.
Co6osition O) Insuran3e In!ustr&
T(e insuran3e in!ustr& ain$& 3o6rises :
Insuran3e Carriers-
Insurance carr!ers are large compan!es that prov!de !nsurance and assume
the r!s$s
covered #y the pol!cy
Insuran3e A#ents-
An !nsurance agent ta$es up an agency or sell!ng l!e !nsurance pol!c!es% wh!le the !nsurance underwr!ter rev!ews !nsurance appl!cat!ons and dec!des whether they should #e accepted or re/ected.
Insuran3e Sur%e&ors-
Insurance surveyors are 9ual!!ed !nvest!gators deputed or the assessment o losses% accord!ng to the!r 9ual!!cat!ons and e&per!ence.
A3tuaries-
An actuary determ!nes prem!um ratesB stud!es mortal!ty trends% constructs mortal!ty ta#les and lays down underwr!t!ng standards.
De%e$o6ent O))i3ers-
Development o!cers !n the sector are respons!#le or the sale o !nsurance pol!c!es !n the allotted terr!tor!al /ur!sd!ct!on. They recru!t and tra!n !nsurance agents.
PLAYE%S IN LIFE AN& NON$LIFE SECTO%' LIFE
NON 9 LIFE
ICICI *rudent!al !e Insurance
ICICI1om#ard Insurance
ota$ 6ah!ndra !e Insurance
Rel!ance 2eneral Insurance
6a& New or$ !e Insurance
ICO1To$yo 2eneral Insurance
-DC ,tandard !e Insurance
-DC Chu## 2eneral Insurance
8a/a/ All!an= !e Insurance
8a/a/ All!an= 2eneral Insurance
8!rla ,un !e Insurance
Royal ,undaram 2eneral Insurance
Av!va !e Insurance
Cholamandalam 2eneral Insurance
IN2 "ysya !e Insurance
Nat!onal Insurance Company
Rel!ance !e Insurance
New Ind!a Assurance Company
Tata AI2 !e Insurance
Tata AI2 2eneral Insurance
6et!e Insurance
Or!ental Insurance
,8I !e Insurance
Un!ted Ind!a Insurance
IC
Hi!tor" of In!urance-
I0m sure we0ve all heard o the word% and have an !dea o
how !t wor$s. Is !t a conceptE IdeaE Is !t someth!ng concrete or a#stractE It depend s on the conte&t o the s!tuat!on. A 9u!c$% s!mple de!n!t!on o !nsurance could #e as ollows> FRe!m#ursement !n a s!tuat!on o loss. Usually% someone dec!des that !nsurance !s neededG. In order or the concept o !nsurance to ar!se% a pre1payment o some type !s re9u!red. In the case o typ!cal% everyday general auto% health and l!e !nsurance% or e&le% the pre1payment !s !n the orm o a prem!um. *r!or to the eve o the year :444% thousands o people loc$ed to the stores% stoc$!ng up on numerous suppl!es. They eared that someth!ng catastroph!c was go!ng to ta$e place once the cloc$ struc$ m!dn!ght% and ! so% they wanted to #e prepared. Isn0t th!s a orm o !nsuranceE ,ure1 !n !ts #as!c de!n!t!on. The suppl!es they purchased would act as re!m#ursement !n the case o loss Insurance !s not necessar!ly an !nvestment rom wh!ch one e&pects to get oneHs money
One o) t(e 'or$!:s ost )aous insuran3e 6ro%i!ers starte! in a 3o))ee(ouse,
#ac$. Nor !s !t gam#l!ng. A gam#ler ta$es r!s$s% wh!le !nsurance oers protect!on aga!nst r!s$s that already e&!st. Insurance !s a way to share r!s$ w!th others.
T(e Ori#ins o) Insuran3e+arly !nsurance goes #ac$ to the +gypt!an t!mes. It was $nown that around <444 8C% Ch!nese merchants d!spersed the!r sh!pments among several vessels to avo!d the poss!#!l!ty o damage or loss. There are some !nsurance compan!es around today !n the Un!ted ,tates that prov!ded !nsurance #ac$ !n the m!d 3440s% as well as some that prov!ded rel!e to #an$s dur!ng the 37<40s and the 2reat Depress!on.
Insurance has e&!sted or thousands o years. A orm o cred!t !nsurance was !ncluded !n the Code o -ammura#!% a collect!on o 8a#ylon!an laws sa!d to predate the aw o 6oses. To !nance the!r trad!ng e&ped!t!ons !n anc!ent t!mes% sh!p owners o#ta!ned loans rom !nvestors. I a sh!p was lost% the owners were not respons!#le or pay!ng #ac$
the loans. ,!nce many sh!ps returned saely% the !nterest pa!d #y numerous sh!p owners covered the r!s$ to the lenders.
It was l!$ew!se !n a mar!t!me sett!ng that later one o the worldHs most amous !nsurance prov!ders% loydHs o ondon% was #orn. 8y 3?% +dward loyd was runn!ng a coeehouse where ondon merchants and #an$ers met !normally to do #us!ness. There !nanc!ers who oered !nsurance contracts to seaarers wrote the!r names under the spec!!c amount o r!s$ that they would accept !n e&change or a certa!n payment% or prem!um. These !nsurers came to #e $nown as underwr!ters. !nally% !n 3?7% loydHs #ecame a ormal group o underwr!ters that !n t!me grew !nto the oremost mar$et or mar!ne r!s$s.
Insuran3e in In!ia 9 A (istori3a$ 6ros6e3ti%e
Insurance #us!ness !s not new to Ind!a. It !nds ment!on !n the wr!t!ngs o 6anu% Ris(i Ya#na%a$;&a and others% !nd!cat!ng that !t has e&!sted !n Ind!a o anc!ent t!mes. It
has evolved over t!me and has drawn heav!ly rom the e&per!ence o other countr!es spec!ally +ngland% where !nsurance compan!es have a more than ;44 years o h!story. 8om#ay !e Assurance Company was esta#l!shed !n 8om#ay (now 6um#a!) on 3st 6ay 3:<. Or!ental !e Assurance Company started was !n Calcutta #y +uropeans. The recorded h!story o Insurance #us!ness !n Ind!a% however% #egan !n 373@ when the 2overnment o Ind!a started pu#l!sh!ng returns o Insurance Compan!es !n Ind!a.
The Insurance Amendment Act o 37;4 a#ol!shed *r!nc!pal Agenc!es. -owever% there were a large num#er o !nsurance compan!es and the level o compet!t!on was h!gh% there were also allegat!ons o una!r trade pract!ces. The 2overnment o Ind!a% thereore% dec!ded to nat!onal!=e the !nsurance #us!ness. An Ord!nance !ssued on 37th January 37;? nat!onal!=ed the !e Insurance sector and HI+ IN,URANC+ COR*ORATION O INDIAH (.I.C.) came !nto e&!stence !n the same year. The IC a#sor#ed 3;@ Ind!an% 3? non1Ind!an !nsurers as also ; prov!dent soc!et!es. ,!nce then IC has #een the only player.
,!m!larly% #eore Novem#er 37:% a num#er o Ind!an and many ore!gn compan!es d!d general !nsurance #us!ness !n Ind!a and th!s #us!ness was l!n$ed w!th the!r #ranches a#road. In add!t!on% IC% some mutual compan!es and cooperat!ve soc!et!es also oered th!s product. In act% on the eve o nat!onal!=at!on% ? Ind!an (!nclud!ng IC) and @; non1Ind!an ent!t!es carr!ed out !nsurance #us!ness !n Ind!a. Nat!onal!=at!on saw the #us!ness o all these organ!=at!ons a#sor#ed #y the 2+N+RA IN,URANC+ COR*ORATION (2IC) w!th !ts our su#s!d!ar!es.
Thus !e Insurance Corporat!on o Ind!a !n the !eld o l!e !nsurance and 2eneral Insurance Corporat!on o Ind!a !n the !eld o general !nsurance have en/oyed a#solute monopoly. -owever% the reorms !n !nanc!al sector !n the early 74s have s!nce touched Insurance also. The 2ovt. o Ind!a set up a comm!ttee w!th ,hr!. R.N. 6alhotra as the Cha!rman to recommend su!ta#le reorms !n th!s sector. As a conse9uence o the recommendat!on o the 6alhotra Comm!ttee% the 2overnment o Ind!a set up an Insurance Regulatory Author!ty. On the :nd Decem#er 3777% Ind!an *arl!ament has passed% Insuran3e Re#u$ator& an! De%e$o6ent A3t % throw!ng open the Insurance sector to
8an$s and other pr!vate part!es. ,!nce then% R8I has come out w!th drat gu!del!nes or entry to th!s sector. Th!s !s seen as a ma/or step !n !nanc!al sector reorms% wh!ch !ntroduce% or the !rst t!me s!nce nat!onal!=at!on o the !nsurance #us!ness% an element o compet!t!on !n th!s sector. Th!s should #r!ng compet!t!vely pr!ced !nsurance or the customer and !mprove the serv!ce ava!la#le to h!m.
Li)e Insuran3e Mar;et !e !nsurance !n e&!st!ng orm came !n Ind!a rom U !n 33 w!th Or!ental !e Insurance Company. The Ind!an l!e Assurance compan!es Act% 373: was the !rst measure to regulate l!e Insurance #us!ness. ater !n 37: the Ind!an Insurance Compan!es act was enacted% wh!ch was amended !n 37<. !nally 2overnment o Ind!a amended th!s act !n 37;4.
!e Insurance Corporat!on o Ind!a was ormed !n ,eptem#er 37;? #y pass!ng IC Act% 37;? !n Ind!an parl!ament.
The #us!ness o l!e !nsurance !n Ind!a !n !ts e&!st!ng orm started !n Ind!a !n the year 33 w!th the esta#l!shment o the Or!ental !e Insurance Company !n ol$ota.
So(e of the i()ortant (i#e!tone! in the #ife in!urance *u!ine!! in India are:
4<41-
The Ind!an !e Assurance Compan!es Act enacted as the !rst statute to
regulate the l!e !nsurance #us!ness. 4<1=-
The Ind!an Insurance Compan!es Act enacted to ena#le the government to
collect stat!st!cal !normat!on a#out #oth l!e and non1l!e !nsurance #us!nesses. 4<2=-
+arl!er leg!slat!on consol!dated and amended to #y the Insurance Act w!th
the o#/ect!ve o protect!ng the !nterests o the !nsur!ng pu#l!c. 4
:@; Ind!an and ore!gn Insurers and the *rov!dent ,oc!et!es ta$en over #y
the Central 2overnment and Nat!onal!=ed. IC ormed #y an Act o *arl!ament% v!=. IC Act% 4 w!th a cap!tal contr!#ut!on o Rs. ; crore rom the 2overnment o Ind!a.
The !e Insurance mar$et !n Ind!a !s an underdeveloped mar$et that was only tapped #y the state owned IC t!ll the entry o pr!vate !nsurers. The penetrat!on o l!e !nsurance products was 37 percent o the total @44 m!ll!on o the !nsura#le populat!on. The state owned IC sold !nsurance as a ta& !nstrument% not as a product g!v!ng protect!on. 6ost customers were under1 !nsured w!th no le&!#!l!ty or transparency !n the products. K!th the entry o the pr!vate !nsurers the rules o the game have changed.
The 3: pr!vate !nsurers !n the l!e !nsurance mar$et have already gra##ed nearly 3 percent o the mar$et !n terms o prem!um !ncome. The new #us!ness prem!ums o the 3: pr!vate players have tr!pled to Rs :444 crore !n :44@1 4; over last year. 6eanwh!le% state owned ICHs new prem!um #us!ness has allen.
Innovat!ve products% smart mar$et!ng and aggress!ve d!str!#ut!on. ThatHs the tr!ple whammy compan!es to s!gn up Ind!an customers aster than anyone ever e&pected. Ind!ans% who have always seen l!e !nsurance as a ta& sav!ng dev!ce% are now suddenly turn!ng to the pr!vate sector and snapp!ng up the new !nnovat!ve products on oer.
The grow!ng popular!ty o the pr!vate !nsurers shows !n other ways. They are co!n!ng money !n new n!ches that they have !ntroduced. The state owned compan!es st!ll dom!nate segments l!$e endowments and money #ac$ pol!c!es. 8ut !n the annu!ty or pens!on products #us!ness% the pr!vate !nsurers have already wrested over << percent o the mar$et. And !n the popular un!t1l!n$ed !nsurance schemes they have a v!rtual monopoly% w!th over 74 percent o the customers.
The pr!vate !nsurers also seem to #e scor!ng #!g !n other ways1 they are persuad!ng people to ta$e out #!gger pol!c!es. or !nstance% the average s!=e o a l!e !nsurance pol!cy #eore pr!vat!=at!on was around Rs ;4%444. That has r!sen to a#out Rs 4%444. 8ut the pr!vate !nsurers are ahead !n th!s game and the average s!=e o the!r pol!c!es !s around Rs 3.3 lac$s to Rs 3.: lac$s1 way #!gger than the !ndustry average.
Types of Life Insurance:
Peranent Li)e Insuran3e-
Th!s !s the one that prov!des or a l!et!me o #ene!ts as long as the prem!ums are pa!d as and when they are due. They are #ene!c!al as one can ta$e a loan on the #ene!ts that can #e ava!led on th!s type o !nsurance.
Ter Li)e Insuran3e >
Th!s prov!des protect!on or a preset l!m!ted per!od o t!me% and would pay the death #ene!t only on death happen!ng w!th!n the preset t!me. It !s cons!dered to #e a !nsurers re9u!re the !nsured to prov!de proo o the!r !nsura#!l!ty. ICICI *rudent!al !eguard !s a pol!cy espec!ally des!gned to prov!de !nsurance at a low cost.
Annuit&-
An Annu!ty !s a contract that prov!des an !ncome or a spec!!ed per!od o t!me% such as a num#er o years. And Annu!ty Cons!derat!on !s the payment% or one o the regular per!od!c paymentsB an annu!tant ma$es or an annu!ty. The #us!ness o Insurance essent!ally means deray!ng r!s$s attached to any act!v!ty over t!me (!nclud!ng l!e) and shar!ng the r!s$s #etween var!ous ent!t!es% #oth persons and organ!=at!ons. !e Insurance !s un!versally ac$nowledged to #e an !nst!tut!on that el!m!nates Hr!s$H and prov!des the t!mely a!d to the am!ly !n the unortunate event o death o the #readw!nner. !e !nsurance !s a wr!tten contract #etween the !nsured and the !nsurer that prov!des or the payment o the !nsured sum on the date o the matur!ty o the contract or on the unortunate death o the !nsured% wh!chever occurs earl!er. !e Insurance !s a contract or payment o a sum o money to the person assured (or nom!nee) on the happen!ng o the event !nsured aga!nst. The contract prov!des or the payment o prem!um per!od!cally to the Insurance Company #y the assured.
The contract prov!des or the payment o an amount on the date o matur!ty or at spec!!ed dates at per!od!c !ntervals or at unortunate d eath% ! !t occurs earl!er.
A!%anta#es ? "ene)its o) Insuran3e
Prote3tion-
!e Insurance guarantees ull protect!on aga!nst r!s$ o death o the assured. In case o death% ull sum assured !s paya#le% whereas under other sav!ngs schemes the total accumulated sav!ngs alone w!ll #e ava!la#le. The later w!ll #e cons!dera#ly less then the sum assured% ! death occurs dur!ng early years.
Lon# ter sa%in#-
!e !nsurance encourages long term sav!ng. 8y pay!ng a small prem!um !n easy !nstallments or a long per!od a handsome sav!ng can #e ach!eved.
Li*ui!it&-
oan can #e o#ta!ned aga!nst a pol!cy assured whenever re9u!red.
Ta@ Re$ie),-
Ta& rel!e !n !ncome ta& and wealth ta& can #e ava!led on the prem!um pa!d or !e Insurance. Income ta& #ene!t can #e ava!led to a ma&!mum l!m!t o <3.;45.
Insuran3e en3oura#es an! )or3es t(ri)t-
A sav!ngs depos!t can #e too eas!ly w!thdrawn. 6any may not #e a#le to res!st the temptat!on o us!ng the #alance or some less worthy purpose. On the other hand% the payment o l!e !nsurance prem!ums #ecomes a ha#!t and comes to #e v!ewed w!th the same ser!ousness as the payment o !nterest on a mortgage% thus !nsurance !n eect #r!ngs a#out compulsory sav!ngs.
Eas& sett$eent an! 6rote3tion a#ainst 3re!itor-
!e Insurance can assure name o a person to whom the pol!cy moneys would #e paya#le !n the event o h!s death. The proceeds o a l!e !nsurance pol!cy% a marr!ed woman0s property act pol!cy const!tutes a trust !n avor o the w!e and or ch!ldren and no separate ass!gnment !s necessary. The #ene!c!ar!es ate ully or!ented rom rad!ators e&cept to the e&tent ! any !nterest !n the pol!cy #y the assured.
A!inisterin# t(e $e#a3& )or bene)i3iaries >
It oten happens that a prov!s!on% wh!ch a hus#and or ather has made through !nsurance !s 9u!c$ly lost through speculat!ve or unw!se !nvestment or #y unnecessary e&pend!ture on lu&ur!es. These cont!ngenc!es can #e prov!ded aga!nst !n the case o !nsurance. The pol!cyholder can arrange rece!ve% !nterested o s!ngle sum or payment o the cla!m amount #y smaller monthly !nstallments over the selected per!od ollowed #y a lump sum at the end there o.
Rea!& ar;etabi$it& an! suitab$& )or *ui3; borro'in#s >
Ater an !n!t!al per!od% o the pol!cyholder !nds h!msel una#le to cont!nue payment o prem!ums he can surrender the pol!cy or cash the sum. Alternat!vely% he can t!e over a temporary d!!culty #y ta$!ng a loan on the sole secur!ty o the pol!cy w!thout delay. urther% a l!e !nsurance pol!cy w!thout delay. urther% a l!e !nsurance pol!cy !s somet!me accepta#le as secur!ty or a commerc!al loan.
Need for the Insurance>
The poss!#!l!ty o damage to assets caused #y any per!l !s the r!s$ that the asset !s e&posed to
R!s$ means the poss!#!l!ty o loss or damage that may or may not happen.
It !s #ecause o the uncerta!nty a#out the r!s$ that !nsurance #ecomes !mportant.
No person should #e !n a pos!t!on to ma$e the r!s$ happen or occur and ta$e una!r advantages.
It covers the r!s$ o dy!ng too early and l!v!ng too long.
Ind!v!dual h!msel also needs !nanc!al secur!ty or the old age or on h!s #ecom!ng permanently d!sa#led when h!s !ncome w!ll stop.
It covers tang!#le assets #ut the concept can #e e&tended to !ntang!#les also.
-uman l!e !s an !ncome generat!ng assets that can #e lost !n case o early death or d!sa#!l!ty caused #y an acc!dent.
CHAPTER- 1
R+,+ARC- D+,I2N Introduct!on
A systemat!=ed study re9u!res proper plann!ng and !mplementat!on o the same. ,o% th!s research des!gn !ncludes an outl!ne o the study% wh!ch was conducted at ICICI PRUDENTIALB $i)e insuran3e, "an#a$ore, The des!gn o the study conta!ns !normat!on stat!ng the statement o the pro#lem% o#/ect!ves o the study% need or the study% and scope o the study% s!gn!!cance o the study% research methodology% and sources o data% tools and techn!9ues o data collect!on% plan o analys!s% l!m!tat!ons o the study and operat!onal de!n!t!ons o the concepts.
a, Stat Stateen eentt o) t(e 6rob$e 6rob$e
It !s always very d!!cult to ma$e !nsurance !nvestment dec!s!ons !n th!s world o !nvestment alternat!ve compan!es. compan!es. It demanded !nvestors to #e $nowledgea#le and tact ull regard!ng the !nsurance mar$et. ,!nce% many !nsurance !nvestments are !ntroduced w!th !n a very short span o t!meB people even hav!ng lot o money are conused to !nvest the!r hard earn!ng money !n eect!ve manner. Th!s conus!on made researcher to choose th!s part!cular !eld study !n th!s regard an eort !s made to put some l!ght on d!erent !nvestment compan!es compan!es or the sa$e o #r!n!ng down the conus!on level among the !nvestors. In order to recommend a su!ta#le !nvestment company to an !nvestor% one must #e aware o the needs o the customer and the !mportance o h!s attr!#utes% the current !nsurance s!tuat!on and ascerta!n!ng att!tude towards r!s$ !nvolved !n an !nvestment wh!le he ma$es h!s !nvestment dec!s!on. eep!ng !n v!ew the a#ove cond!t!on% a study t!tled1F A Co6arati%e Stu!& on In%est S(ie$! Li)e o) ICICI Pru!entia$ 'it( ot(er Insuran3e Co6aniesB, A descr!pt!ve study !s conducted !n ICICI PRUDENTIAL w!th OM 5OTA5> "IRLA SUNLIFE> and MET LIFE, To analy=e these var!ous !nvestment compan!es% a compar!son had made w!th l!e !nsurance. # , Obe3ti% Obe 3ti%ee o) t(e stu!&
The specific objectives of the present study are as follows:
To study the structure o !nsurance company and !nsurance mar$et.
To study the e&!st!ng #us!ness o !nsurance !ndustry.
To study the !nvestors0 #ehav!or regard!ng !nsurance.
To study the percept!on level o o !nsurance compan!es towards customers.
To study the w!de spectrum o !nsurance compan!es w!th a s!ngle !nvestment pol!c!es.
To eval evalua uate te the !nsur nsuran ance ce mar$e ar$ett unde underr Unit Unit$i $in;e n;e! ! P$an P$an 'it( 'it( Ca6i Ca6ita$ ta$ +uarantee,
c. S3o6 S3o6ee o) t(e stu!&
The scope o the study !s l!m!ted to the c!ty o 8angalore only. The compan!es% wh!ch !ssue l!e !nsurance% have #een cons!dered !n the study. The respondents have #een mostly employees rom ICICI PRUDENTIAL % OM 5OTA5 % "IRLA SUNLIFE% and MET LIFE. The study !s ocused on analys!s o !nvestmentsB on a part!cular l!e !nsurance !nsurance pol!cy called called INVEST SHIELD LIFE 7UnitLin;e! P$an 'it( Ca6ita$ +uarantee8 and !ts out puts !n var!ous !nvestment compan!es% wh!ch are ment!oned a#ove. A comparat!ve analys!s !s conducted #etween these compan!es on a s!ngle ' same pol!cy. The !nd!ngs w!ll reveal a#out Insurance !nvestments as a #etter opt!on !n a #etter company. d. O6erationa$ !e)inition o) t(e 3on3e6ts
Preiu- The ee pa!d #y the !nsured to the !nsurer or
assum!ng the r!s$.
Li)e insuran3e- Insurance that guarantees a spec!!c sum o
mone mo ney y to a de des! s!gn gnat ated ed #e #ene ne! !c! c!ar ary y up upon on th thee de deat ath h o th thee !nsured or to the !nsured ! he or she l!ves #eyond a certa!n age.
Prote3tion- ,av!ngs through l!e !nsurance guarantee ull protect!on aga!nst r!s$ o
death o the saver. In l!e !nsurance% on death% the ull sum assured !s paya#le (w!th #onuses wherever appl!ca#le).
Li*ui!it&- oans can #e ra!sed on the sole secur!ty o a pol!cy wh!ch has ac9u!red
loan value. 8es!des% a l!e !nsurance pol!cy !s also generally accepted as secur!ty or even a commerc!al loan.
Net Asset Va$ue 7NAV8-
Investments L Current Assets 1 Current l!a#!l!t!es and *rov!s!ons Num#er o un!ts outstand!ng outstand!ng !n the un!t und
Met(o!o$ o!o$o#& o#& o) resear3 res ear3( ( e. Met( I. Type o Research>
The research carr!ed out !n th!s study !s descr!pt!ve !n nature. II. ,ample s!=e>
In add!t!on to ICICI *RUD+NTIA% here other !nsurance compan!es have #een chosen or sampl!ng namely O6 OTA% 8IRA ,UNI+ and 6+T I+. IN,URANC+ CO6*ANI+,
*OIC NA6+
ICICI PRUDENTIAL OM 5OTA5 "IRLA SUNLIFE MET LIFE
Invest sh!eld l!e Cap!tal 6ult!pl!er le&! save plus 6et smart
III. Tool or data collect!on>
The study was done #ased on the collect!on o *r!mary ' ,econdary data.
Priar& Data- *r!mary data was collected w!th the use o
9uest!onna!re and personal !nteract!on w!th the company employees.
Se3on!ar& Data- ,econdary data was collected #y>
Reerr!ng several #oo$s on !nsurance !ssues.
Reerr!ng d!erent #oo$s and prev!ous pro/ect reports !n a college l!#rary.
Reerr!ng rom act sheets% #rochures% /ournals% reerence #oo$s% etc.
Reerr!ng some o the art!cles% reports and maga=!nes on !nsurance.
"!s!t!ng l!#rar!es. I". 6ethod o analys!s
An analyt!cal research was carr!ed out !rst to ga!n !ns!ght and proper understand!ng o the l!e !nsurance and !ts d!erent parameters connected to the un!t1l!n$ed plan. Th!s was done through 9uest!onna!re and personal !nteract!on w!th the employees o ICICI *RUD+NTIA employees employees and the employees o the other !nsurance compan!es. Th!s was ollowed #y a comparat!ve study analys!s #etween the !nsurance compan!es. compan!es. ,everal graphs graphs and ta#les were prepared or a #etter anal!=at!on o serv!ce prov!ded #y them towards a s!ngle Un!t1l!n$ed plan.
Liitations O) T(e Stu!&
,tudy restr!cted to 8angalore c!ty only.
,ome o the ma/or po!nts o the l!e !nsurance pol!cy were not let out.
ree% cont!nuous and rel!a#le !normat!on wasn0t always ava!la#le.
,ome o the !normat!on was con!dent!al. Kh!ch do company ' !ts employees only use. ,o such !normat!on0s are not revealed outs!de or the general pu#l!c.
The t!me span or the survey was short and hence only the ma/or aspects are cons!dered% not all the aspects were cons!dered.
The !normat!on prov!ded #y the respondents !n terms o the!r !ncome level could not #e accurate as people are not very open when !t comes to !nanc!al matters.
eep!ng !n m!nd the no. o pages% only our ma/or l!e !nsurance compan!es were ta$en under cons!derat!on or the comparat!ve study.
ac$ o !normat!on could #e also #e!ng m!slead!ng% thus lead!ng to an undes!ra#le !mpact as a result such !normat!on #ased on dec!s!on ma$!ng.
h. Chapter scheme C(a6ter 9 4,
Introduct!on C(a6ter 9 1,
Research Des!gn. C(a6ter 9 2,
Company *ro!le. C(a6ter 9 ,
Analys!s and !nterpretat!on o data C(a6ter 9 /
,ummary o !nd!ngs% Conclus!on and Recommendat!ons.
C-A*T+R> <
COMPANY PROFILE,
ICICI *rudent!al !e Insurance Company !s a /o!nt venture #etween ICICI 8an$% a prem!er !nanc!al powerhouse% and prudent!al plc% a lead!ng !nternat!onal !nanc!al serv!ces group head9uartered !n the Un!ted !ngdom. Incorporated on July :4% :444 !t !s a @>:?% ICICI *rudent!al was amongst the !rst pr!vate sector !nsurance compan!es to #eg!n operat!ons !n Decem#er 3:% :444 ater rece!v!ng approval rom Insurance Regulatory Development Author!ty (IRDA).
ICICI *rudent!al e9u!ty #ase stands at Rs. 20.0 billion w!th ICICI 8an$ and *rudent!al plc hold!ng @5 and :?5 sta$e respect!vely. As on the date Jan :44 the company !ssued over !." million policies. The total company asset !s 3@444 crore. Today the company !s the M3 pr!vate l!e !nsurers !n the country. As on date the company !ncluded #$0 offices% 2"%000 advisors & 22 banc assurance partners.
Pru!entia$ 6$3 +sta#l!shed !n ondon !n 3@% Pru!entia$ 6$3 % through !ts #us!nesses !n the U and +urope% the U, and As!a% prov!des reta!l !nanc!al serv!ces products and serv!ces to more than :4 m!ll!on customers% pol!cyholder and un!t ho lders worldw!de. As o Decem#er :44?% the company had over :;3 #!ll!on ounds !n unds under management. *rudent!al has #rought to mar$et an !ntegrated range o !nanc!al serv!ces products that now !ncludes l!e assurance% pens!ons% mutual unds% #an$!ng% !nvestment management and general !nsurance. In As!a% *rudent!al !s UHs largest l!e !nsurance company w!th a vast networ$ o +, #ife and (utua# fund o)eration! in te#-e countrie!$ •
Ch!na
•
-ong$ong
•
Ind!a
•
Indones!a
•
Japan
•
orea
•
6alays!a
•
The *h!l!pp!nes
•
,!ngapore
•
Ta!wan
•
Tha!land
•
"!etnam
Pru!entia$ +rou6 O%er%ie' •
ounded !n 3@ the U0s largest l!e !nsurer or over 3;4 years
•
:;3 #!ll!on unds under management.
•
*rudent!al now has operat!ons !n 33 As!an countr!es
•
*rudent!al !s the lead!ng l!e !nsurance player !n +urope.
•
*rudent!al !s the astest grow!ng l!e !nsurance company !n As!a.
Vision To ma$e ICICI *rudent!al the dom!nant !e and *ens!ons player #u!lt on trust #y world1class people and serv!ce.
Thi! i! ai(ed to achie-e through:
•
Develop!ng and !mplement!ng super!or ris; ana#eent an! in%estent
Understand!ng the nee!s o) 3ustoers and oer!ng them super!or products and
•
serv!ce everag!ng
•
te3(no$o#&
to
serv!ce
customers
9u!c$ly%
e!c!ently
and
conven!ently !ntroduc!ng strate#ies to oer susta!na#le and sta#le returns to our pol!cyholders *rov!d!ng an ena#l!ng env!ronment to oster growth and learn!ng or our
•
e6$o&ees
And a#ove all% #u!ld!ng transparency !n all our deal!ngs.
•
Ke do #el!eve that we are on the threshold o an e&c!t!ng new opportun!ty% where we can play a s!gn!!cant role !n rede!n!ng and reshap!ng the sector. 2!ven the 9ual!ty o our parentage and the comm!tment o our team% there are no l!m!ts to our growth. The success o the company w!ll #e ounded !n !ts unl!nch!ng comm!tment to ; core values% namely>
•
Integr!ty
•
Customer !rst.
•
8oundary less
•
Ownersh!p and
•
*ass!on
+ach o the values descr!#es what the company stands or% the 9ual!t!es o our people and the way we wor$.
Ke #el!eve that we are on the threshold o an e&c!t!ng new opportun!ty% where we can play a s!gn!!cant role !n rede!n!ng and reshap!ng the sector. 2!ven the 9ual!ty o our parentage and the comm!tment o our team% there are no l!m!ts to our growth.
Va$ues The success o the company w!ll #e ounded !n !ts unl!nch!ng comm!tment to ; core values 11 Integr!ty% Customer !rst% 8oundary less% Ownersh!p and *ass!on.
MANA+EMENTThe ICICI *rudent!al !e Insurance Company !m!ted 8oard compr!ses reputed people rom the !nance !ndustry #oth rom Ind!a and a#road.
"oar! o) Dire3tors •
Mr. !.@. !amath> Chairman
•
Mr.
•
Mrs. !alpana Morparia
•
Mrs.Chanda !ochhar.
•
Mr. -T )hong.
•
Mr.M.).Modi
•
Mr.&."arayanan
•
Mr. Mar %ucer Mrs. Lalita 2. ;upte
•
•
Mr. 2anny
•
Mr. M.). Modi
••
Mr.".#.annan> Mr.!ei 2adiseth 6-ecutive 2irector.
•
Mr. 6-ecutive 2irector.
•
Ms. #hiha #harma> Managing 2irector ? C6O.
Mana#eent Tea •
Ms. #hiha #harma> Managing 2irector ? C6O.
•
Ms. Anita )ai> Chief – Customer service ? %echnology.
•
Mr.".#.annan> 6-ecutive 2irector
•
Mr. 6-ecutive 2irector.
•
Mr.A'im Mithani> Chief Actuary.
•
Mr.)uneet "anda >Chief Investment Officer
•
Mr. Chief: #?2
Distribution ICICI *rudent!al has one o the largest d!str!#ut!on networ$s amongst pr!vate l!e !nsurers !n Ind!a% hav!ng commenced operat!ons !n ?: c!t!es and towns !n Ind!a. These are> Agra% Ahmeda#ad% A/mer% Allaha#ad% Amr!tsar% Auranga#ad% 8angalore% 8are!lly% 8hat!nda% 8hopal% 8hu#aneshwar% Chand!garh% Chenna!% Co!m#atore% Dehradun% 2oa% 2untur% 2urgaon% 2wal!or% -ydera#ad% -u#l!% Indore% Ja!pur% Jalandhar% Jamnagar% Jamshedpur% Jodhpur% anpur% arnal% och!% ol$ata% olhapur% ota% ottayam% o=h!$ode% uc$now% udh!ana% 6adura!% 6angalore% 6eerut% 6um#a!% Nagpur% Nas!$% No!da% New Delh!% *at!ala% *une% Ra!pur% Ra/$ot% Ranch!% Rour$ela% ,!l!gur!% ,urat% Thane% Thr!ssur% Tr!chy% Tr!vandrum% Uda!pur% "adodara% "ash!% "!/ayawada and "!=ag.
The company has twelve #anc assurance t!e1ups% hav!ng agreements w!th ICICI 8an$% ederal 8an$% ,outh Ind!an 8an$% 8an$ o Ind!a% ord r!shna 8an$ and *un/a# ' 6aharastra Co1 operat!ve 8an$% ,hamrao "!thal Co1operat!ve 8an$ ' Jalgaon *eople0s Co1 operat!ve 8an$% 2oa state Co1operat!ve 8an$% Indoor *araspar ,aha$ar! 8an$% 6an!pal ,tate Co1operat!ve 8an$% as well as some co1operat!ve #an$s and corporate agents. It has also t!ed up w!th organ!=at!ons l!$e Dhan or d!str!#ut!on o ,alaam P!ndag!% a pol!cy or the soc!ally and econom!cally underpr!v!leged sect!ons o soc!ety.
ICICI *rudent!al has recru!ted and tra!ned over 344%444 !nsurance agents to !nterace w!th and adv!ce customers. urther% !t leverages !ts state1o1the1art IT !nrastructure to prov!de super!or 9ual!ty o serv!ce to customers.
Fa3t S(eet
THE COMPANY
ICICI *rudent!al !e Insurance Company !s a /o!nt venture #etween ICICI 8an$% a prem!er !nanc!al powerhouse% and prudent!al plc% a lead!ng !nternat!onal !nanc!al serv!ces group head9uartered !n the Un!ted !ngdom. ICICI *rudent!al was amongst the !rst pr!vate sector !nsurance compan!es to #eg!n operat!ons !n Decem#er :444 ater rece!v!ng approval rom Insurance Regulatory Development Author!ty (IRDA).
ICICI *rudent!al0s e9u!ty #ase stands at Rs. :4.?4 #!ll!on w!th ICICI 8an$ and prudent!al plc hold!ng @5 and :?5 sta$e respect!vely. or the past our years% ICICI *rudent!al has reta!ned !ts pos!t!on as the No.3 pr!vate l!e !nsurer !n the country% w!th a w!de range o le&!#le products that meet the needs o the Ind!an customer at every step !n l!e. To $now more a#out the company% please v!s!t www.!c!c!prul!e.com.
6!lestones Crossed
Cap!tal !nus!on stands at Rs.20.0 billion.
Over !." million *ol!c!es !ssued s!nce !ncept!on
The total asset !s !%000 crore.
Recently they have !ntroduced two new unds namely F#e.i groth / F#e.i *a#anced'
Around @45 mar$et share #y prem!um among pr!vate players.
!rst *r!vate !e Insurer to launch *ens!on plan w!th ,ec 4CCC Ta& #ene!t.
They have launched one more #est health product named Ho!)ita# care
,trength !n Num#ers •
34 regular prem!um products
•
? s!ngle prem!um products
•
@ health products.
•
@ Ret!rement plans
•
@ r!ders 1 Ta& #ene!t (,ec 4D)
•
Over :<@444 adv!sors present !n ;4 o!ces cover!ng all ma/or metros. Del!very through Alternate D!str!#ut!on channels l!$e 8ro$ers% Corporate Agents and *artner 8an$s as well.
•
Kell pos!t!oned to target the mass ' the mass aluent segments
•
argest 8ancassurance set up !n the country today w!th more than @444 pol!c!es !ssued per month
•
!rst !e Insurer to operat!onally T!e1Up w!th a *u#l!c sector 8an$.
ICICI Prudentia# ha! ,01 of )ri-ate #ife in!urance (ar2et$ ICICI *rudent!al !e Insurance has !ncreased !ts mar$et share among pr!vate l!e !nsurers to nearly @45% rom <<5 as o end1Decem#er. The companyHs !rst1year prem!um !ncome !n the Apr!l1January per!od stood at Rs @?@.? crore% account!ng or <7.<5 o the Rs 3%
Recently 8a/a/ All!an= has made a cla!m where !t has sa!d that !t has #ecome the No .3 pr!vate l!e !nsurance. 8ut when we go on w!th ull deta!ls% ICICI *rudent!al !s st!ll the No 3 t!ll th!s date as !t has #een clearly #een stated !n the med!a and the company we#s!te. Accord!ng to #us!ness !gures #rought out #y the Insurance Regulatory and Development Author!ty (IRDA)% the !rst1year prem!um mo#!l!=ed #y ICICI *rudent!al !e Insurance !n the !rst ten months amounted to Rs @?.@. Th!s !s more than tw!ce the prem!um !ncome generated #y !ts closest r!val 8!rla ,un !e that ra!sed Rs 37; crore dur!ng the same per!od. -DC ,tandard !e and Tata AI2 have reta!ned the!r th!rd and ourth pos!t!ons. Interest!ngly% there are three compan!es that are nec$1and1nec$ !n the #attle to #e among
the top !ve w!th a mar$et share o close to 5 1 All!an= 8a/a/% 6a& New or$ !e and ,8I !e Insurance. In the group !nsurance mar$et% ICHs share !n the country !s around 7<5. Among the pr!vate compan!es% ,8I !e% 8!rla ,un !e and -DC ,tandard !e dom!nate the group !nsurance segment. ,8I !e% w!th !ts group pol!c!es or mortgage loan protect!on and depos!tor !nsurance% has close to @;.5 o the group mar$et among pr!vate compan!es. 8!rla ,un !e has a :<.@5 share% ollowed #y -DC ,tandard !e wh!ch has an 3.@5 share.
A3A&2#.
Awards India's Most Customer Responsive Insurance Company Avaya Global Connect - Economic Times Customer Responsiveness Awards
Most Trusted Private Life Insurer The Economic Times - A C Nielsen Survey of Most Trusted rands ! "##$% "##& and "##'
Prudence Customer Centricity Award 2004 & 200 (rudential Corporation Asia
IMM Award for !"ce##ence )nstitute of Mar*etin+ , Mana+ement
$r%aniation wit Innovative (R Practices )ndira Group of )nstitutes
)uper *rand 200+,04
$r%aniation wit Innovative (R Practices Asia-(acific R Con+ress Awards for R E.cellence
)i#ver !ffie for !ffectiveness of te -Retire from .or/ not #ife advertisin% campai%n Effies "##$
Reco%nitions IMM Award for !"ce##ence )nstitute of Mar*etin+ , Mana+ement
$r%aniation wit Innovative (R Practices )ndira Group of )nstitutes
$r%aniation wit Innovative (R Practices Asia-(acific R Con+ress Awards for R E.cellence
/nit 0alues of different (lan options as on #1-#'-"##2 P#an
1nit a#ue 3Rs5unit6
(rotector 3)ncome4 (lan5
6'7#1&"
alancer 3alanced4 (lan5
"$72&
Ma.i miser 3Growth4 (lan5
&'722
(ension Ma.i miser 3Growth4 (lan 8
&'79&
(ension alancer 3alanced4 (lan 8
""7$6
(ension (rotector 3)ncome4 (lan 8
6$7'
Group alanced :und
6'7;;
Group
6"7$21'
Group Short Term debt fund
6"7$'&&
Group Growth :und
"#7#2
Group Capital Guarantee Short Term
6672;&$
Ma.i miser 3Growth4 :und )) =
"&726
(reserver 3Short Term4 :und 5 =
6679$';
alancer 3alanced4 :und )) =
6'7$$
(rotector 3)ncome4 :und )) =
667"$&9
(ension (reserver 3Short Term4 :und 8 >
6671262
(ension Ma.i miser 3Growth4 :und )) >
"'721
(ension (rotector 3)ncome4 :und )) >
667"$'$
(ension alancer 3alanced4 :und )) >
6'72"
)nvest Shield Cash 555
667"'#1
)nvest Shield ?ife 55
6$7&6
)nvest Shield (ension
6$7&&
)C)C) (rudential ?ife Ma.i miser ))) ==
667;
)C)C) (rudential ?ife alancer ))) ==
667#$
)C)C) (rudential ?ife (rotector ))) ==
6#7;$9'
)C)C) (rudential ?ife (reserver ))) ==
6#716";
5Group Capital Guarantee
6#79"$
5Group Capital Guarantee alanced :und
667''
)nvest Shield ?ife New :und 88
6676;
Group Capital Guarantee Growth :und
6#7&9
Cash (lus :und
6672;9'
Secure (lus :und
66726
Secure (lus (ension :und
667&'9
:le.i Growth 5
6#7'"
:le.i Growth )) =
6#7''
:le.i Growth ))) ==
6#7'
(ension :le.i Growth 8
6#7'2
(ension :le.i Growth )) >
6#7'
:le.i alanced 5
6#7$"
:le.i alanced )) =
6#7$1
:le.i alanced ))) ==
6#7"2
(ension :le.i alanced 8
6#7&"
(ension :le.i alanced )) >
6#7$6
TA"LE SHOWIN+ NO OF PRODUCTS AT +LANCE
'roduct
Min Rati A#e at Prei n# Entr& u
Su Assure!
Co%e r Matur Ceasi it& n# Ter A#e A#e
Ri!ers A$$o'
e! Min Ma@
Min
Ma@ Min Ma@ Min Ma@ Ma@
Sa%e :N: Prote3t
3
4
?4
?%444
;4%444 3 Crore 34
Cas( "a3;
3
3?
;;
?%444
Sart 5i!
3.;
:4
?4
Sart 5i! ULIP 7RP8
3.;
:4
Sart 5i! ULIP 7SP8
3.;
Li)e#uar! SP
<4
3
4
4
AD% A8% CI (A)% 6,
;%444 3 Crore 3; ' :4
1
4
4
AD% A8% CI (A)% 6,
%@44
3 ac <4 acs 34
:;
1
4
4
AD A8 I8R
?4
3%444
3%ac <4 acs 34
:;
1
4
4
AD% I8R% KO*
:4
;4
;4%444 :.; ac ;4 acs 34
:;
1
?4
?4
3
3
;4
1
Li)e#uar! ROP
3
3
;4
Li)e#uar! WROP
3
3
Li)e Lin; SP
4
Li)e Tie
3
AD% I8R
: ac 34 acs
;
3;
1
?;
?;
NA
:%@44
3 ac
3Crore
;
:;
1
?;
?;
AD% A8
;4
:%@44
3 ac 3 Crore
;
:;
1
?;
?;
AD% A8
4
?:
:;%444
34;5 O ,A
3
1
1
1
4
NA
4
?4
3%444
3 ac ;4 lac$s <
1
1
1
4
AD% CI (,)% 6,
<4
;4
4
4
AD% A8% CI(,)%6,
;:
;4
4
4
AD% CI(,)% 6,
;:
;4
4
4
NA
;4
;
;
AD% A8% KO*% CI1,% 6,
1
;
;
AD% A8% 6,% I8% CI (A)% KO*
Fore%er Li)e RP
3
:4
?4
?%444
No ;4%444 !m!t
Li)e Tie Pension
3
3
?4
34%444
3%44%44 4 ;4 lac$s 34
Li)e Lin; Pension
4
3
?:
:;%444
34;5 O ,A
<
Se3ure P$us Pension
3
3
?4
No 34%444 ;4%444 !m!t
34
Se3ure P$us
3
4
?4
?%444
34
<4%444
1
;
<4
N.A Hea$t( Assure 6$us
3.;
3
;;
344
3 la$h 34 la$h 34
<4
@
?;
?;
Here in the a*o-e ta*#e !o(e )oint! are to *e re(e(*ered:
3) Non ,tandard age proo (N,A*) not accepta#le or Term% Un!t !n$ and *ens!on *roducts. :) Un!t !n$ed *lans% ,ecure *lus% Cash plus not allowed #eyond class ". <) !e 2uard *roducts not allowed #eyond class I". @) or Un!t !n$ products the l!e cover e&!sts #etween to 4 yrs.
Product! Launched 3" ICICI P%U&ENTIAL Life In!urance In 3rief Insuran3e So$utions )or In!i%i!ua$s ICICI *rudent!al !e Insurance oers a range o !nnovat!ve% customer1centr!c products that meet the needs o customers at every l!e stage. Its 37 products can #e enhanced w!th up to ? r!ders% to create a custom!=ed solut!on or each pol!cyholder.
In%estents 6$ans
Li)eLin; II !s a un!9ue plan that com#!nes the secur!ty o a l!e !nsurance pol!cy
w!th the opportun!ty o en/oy!ng h!gh returns on your !nvestments% w!thout the mar$et r!s$s comprom!s!ng on the protect!on o your am!lyQ
Deat( "ene)it- The ,um Assured under the product has : opt!ons% e!ther ;445 o the
!n!t!al prem!um or 34;5 o the !n!t!al prem!um. In the event o an unortunate death% the
#ene!c!ary w!ll rece!ve h!gher o the value o un!ts or the !n!t!al death #ene!t% less any w!thdrawals. Wit(!ra'a$ "ene)it- One can ma$e part!al w!thdrawals rom the accumulated value o
the pol!cy ater complet!on o one pol!cy year. F$e@ibi$it&- Choose rom our und opt!ons% #ased on your !nvestment o#/ect!ve and r!s$
appet!te. I at a later stage your !nanc!al pr!or!t!es change% you can sw!tch #etween the var!ous und opt!ons% a#solutely ree% @ t!mes a year.
Sa-ing! So#ution!
%
%
Are all !nvestments sh!eld plans%
th!s product range truly ma$es the un!t l!n$ed products !deal even or w!der range o aud!ence% w!th lower prem!um levels and the added secur!ty o a cap!tal guarantee. It !s a un!9ue range o product compr!s!ng o pens!on and sav!ng plans% and !s !deally su!ted or those en/oy le&!#!l!ty% transparency and% o course guarantees. A complete mar$et1l!n$ed !nsurance plan that adapts !tsel to your chang!ng protect!on and !nvestment needs% throughout a l!et!me.
A mar$et l!n$ed an !nsurance plan that meets your Investment and *rotect!on needs. Is a transparent and eature1pac$ed sav!ngs plan that oers < levels o protect!on.
Is a transparent% eature1pac$ed sav!ngs plan that oers < levels o protect!on as well as l!9u!d!ty opt!ons. Is a trad!t!onal endowment sav!ngs plan that oers l!e protect!on along w!th ade9uate returns. Is an ant!c!pated endowment pol!cy !deal or meet!ng m!lestone e&penses l!$e a ch!ld0s marr!age% e&penses or a ch!ld0s h!gher educat!on or purchase o an asset.
Protection So#ution!
Li)e#uar! !s a protect!on plan% wh!ch oers l!e covers at very low cost. It !s ava!la#le !n
< opt!ons •
evel term assurance w!th level return o prem!um%
•
evel o assurance w!thout level return o prem!um along w!th two r!ders AD8R and KO*
•
evel term assurance 1 s!ngle prem!um.
C(i$! P$ans
The plans prov!de guaranteed educat!onal #ene!ts to a ch!ld along w!th l!e !nsurance cover or the parent who purchases the pol!cy. The pol!cy !s des!gned to prov!de money at !mportant m!lestones !n the ch!ld0s l!e. ,mart !d plans are also ava!la#le !n un!t1l!n$ed orm 1 #oth s!ngle prem!um and regular prem!um. •
As a respons!#le parent% you w!ll always str!ve to ensure a hassle1ree% successul l!e or your ch!ld. -owever% l!e !s ull o uncerta!nt!es and even the #est1la!d plans can go wrong. -ere0s how you can g!ve your ch!ld a 3445 sae and assured tomorrow% whatever the uncerta!nt!es. ,mart !d !s espec!ally des!gned to prov!de le&!#!l!ty and saeguard your ch!ld0s uture educat!on and l!estyle% ta$!ng all poss!#!l!t!es !nto account. Choose rom amongst a #as$et o : plans>
•
,mart !d un!t1l!n$ed regular prem!um
•
,mart !d regular prem!um
(ll these )#an! offer you: 4, Finan3ia$ "ene)its- Regular payments at cr!t!cal stages !n your ch!ld0s l!e% l!$e 8oard
e&am!nat!ons% 2raduat!on and *ost1graduat!on.
1, Tota$ 6ea3e o) in!> e%en i) &ou are not aroun! 2, Su Assure! is 6ai! ie!iate$&- +nsures that your loved ones stay !nanc!ally
secure% even !n your a#sence. . A$$ )uture 6reius are 'ai%e!- +nsur!ng that your am!ly !s not !nanc!ally
#urdened !n your a#sence.
.
/, Po$i3& bene)its 3ontinue- The educat!onal #ene!ts o the pol!cy cont!nue% ensur!ng
that your ch!ld can real!=e h!s or her dreams w!thout any hassles. 0, De%e$o6ent A$$o'an3e- ,mart !d guarantees regular !ncome to secure your ch!ld0s
educat!onal career and also ensures h!s or her all1round development% or a nom!nal add!t!onal amount. The Income 8ene!t R!der ta$es care o th!s through an annual payment o 345 o the sum assured% to your ch!ld% t!ll the matur!ty o the pol!cy% !n the unortunate event o the death o the parent. All ,mart !d plans can #e enhanced w!th the Acc!dent ' D!sa#!l!ty 8ene!t R!der and R!der. ou can also an Acc!dent 8ene!t R!der to a ,mart !d Regular *rem!um pol!cy% and a Ka!ver o *rem!um R!der (KO*) to ,mart !d un!t1l!n$ed regular prem!um pol!cy.
Mar;et$in;e! So$utions Li)e Lin; II !s a s!ngle prem!um 6ar$et !n$ed Insurance *lan% wh!ch com#!nes l!e
!nsurance cover w!th the opportun!ty to stay% !nvested !n the stoc$ mar$et. Oers customers the le&!#!l!ty and control to custom!=e the pol!cy to meet the chang!ng needs at d!erent l!e stages. It oers @ und opt!ons 1 *reserver% *rotector% 8alancer and 6a&! m!ser.
!s a l!m!ted prem!um pay!ng plan that oers customers l!e !nsurance cover t!ll the age o ;. Retireent So$utions-
Is a ret!rement product targeted at !nd!v!duals !n there th!rt!es. Is a le&!#le pens!on plan that allows one to select #etween < levels o cover.
Mar;et$in;e! retireent 6ro!u3ts-
Is a regular prem!um mar$et1l!n$ed pens!on plan. Is a s!ngle prem!um mar$et1l!n$ed pens!on plan. ICICI *rudent!al also launched ::Sa$aa in!a#i::% a soc!al sector group !nsurance pol!cy targeted at the econom!cally underpr!v!leged sect!ons o the soc!ety. +rou6 Insuran3e So$utions-
ICICI *rudent!al also oers 2roup Insurance ,olut!ons or compan!es see$!ng to enhance #ene!ts to the!r employees. ICICI Pru +rou6 +ratuit& P$an- ICICI *ruHHs group gratu!ty plan helps employers und
the!r statutory gratu!ty o#l!gat!on !n a sc!ent!!c manner. The plan can also #e custom!=ed to structure schemes that can prov!de #ene!ts #eyond the statutory o#l!gat!ons. ICICI Pru +rou6 Su6erannuatin# P$an- ICICI *ru oers a le&!#le de!ned
contr!#ut!on1superannuat!ng scheme to prov!de a ret!rement $!tty or each mem#er o the group. +mployees have the opt!on o choos!ng rom var!ous annu!ty opt!ons or opt!ng or a part!al commutat!on o the annu!ty at the t!me o ret!rement. ICICI Pru +rou6 Ter P$an- ICICI *ruHHs le&!#le group term solut!on helps prov!de
aorda#le cover to mem#ers o a group. The cover could #e un!orm or #ased on des!gnat!onran$ or a mult!ple o salary. The #ene!t under the pol!cy !s pa!d to the #ene!c!ary nom!nated #y the mem#er on h!sher death. Rura$ 6$ans
ICICI *ru!e0s Rural *roducts are des!gned to meet the needs o the rural consumers. These products oer the ollow!ng eatures> •
ow and Aorda#le *rem!ums
•
!e Cover
•
,av!ngs Opt!on
•
-assle ree procedure
ICICI *rudent!al oers : spec!ally des!gned rural plans •
ICICI *ru 6!tra +ndowment *lan
•
ICICI *ru 6!tra +ndowment *lan
ICICI Pru Mitr offer! the fo##oing feature!: •
!e Cover and ,av!ngs
•
Regular *rem!ums
•
Age at entry> 3 1 @; rs
•
,um Assured> Rs.;% 444 1:4%444
•
*rem!um ear> Rs. ;4 1 ;;< (,A> Rs.34% 444)
•
6atur!tyDeath #ene!t> ,um Assured
ICICI Pru Sura;s(a Re#u$ar Preiu•
ICICI *ru ,ura$sha !s a regular prem!um pol!cy w!th the ollow!ng eatures>
•
Ind!v!dual pol!cy
•
Only !e cover
•
Term 1 < ' ; rs
•
Age !ndependent prem!um
•
Age at entry> 3 1 @; rs
•
,um Assured> ,!ngle
•
*rem!um ear> Rs ;4 :44
•
6atur!tyDeath #ene!t> Rs.;% 444 1 :4%444
•
Death 8ene!t> ,um Assured
your savings from your time overseas can be easily canali'ed to meet your familys needs : no, and in the future. #o> ,hether itBs your dream to retire in your hometo,n to secure funds for your childrens education or to build assets> ICICI )rudential has a range of solutions that can be customi'ed to meet your needs.
7a8, Investment *lans 7b8, ,av!ngs *lans
738, Ret!rement *lans 7!8, Ch!ld *lans
5e&an insuran3e 6$ans-
A eyman !s an !nd!v!dual who d!rectly aects the pro!ta#!l!ty and the cont!nu!ty o a #us!ness and whose a#sence may have an adverse eect on the health and cont!nu!ty o the #us!ness. eyman !nsurance !s a l!e !nsurance pol!cy ta$en #y the company on the l!e o such a $ey person. The o#/ect!ve o the $eyman !nsurance !s to prov!de the company w!th money so that the !nanc!al losses to the company can #e protected% !n a#sence o the $eyman. The a!m !s to !ndemn!y the company o these losses and to allow #us!ness cont!nu!ty. All prem!ums pa!d or secur!ng a $eyman l!e !nsurance pol!cy are treated as #us!ness e&pend!ture us < (3). !eT!me II% ,ecure*lus% ,aveHnH*rotect% !eguard and *rem!er !e plans are ava!la#le or the purpose o $eyman !nsurance.
F#e.i*#e %ider O)tion!: Ri!ers Criti3a$ I$$ness "ene)it Ri!er
%his rider provides protection against 7 critical illnesses> namelyD Ma$or organ transplants>
complete
renal
failure>
#troe> )aralysis> Heart attac> @alve replacement surgery> Ma$or surgery of the aorta> CA;# E
8ene!ts pa!d on contract!ng the !llness A33e$erate! bene)its 7a%ai$ab$e 'it( sa%e nG 6rote3t an! Cas( ba3;8- I the
pol!cyholder !s d!agnosed w!th any o the spec!!ed !llnesses% then the pol!cyholder !s pa!d the ent!re sum assured under the r!der. The pol!cy along w!th all the r!ders (to the e&tent o the R!der ,um Assured) !s then term!nated. -owever% the rema!nder o the #ase pol!cy cont!nues t!ll the end o the term. The pol!cyholder w!ll have to cont!nue pay!ng h!s prem!ums
or
the
rema!nder
o
the
pol!cy.
A33e$erate! bene)its 7a%ai$ab$e 'it( Se3ureP$us> Cas(P$us an! Se3ureP$us Pension8-
I the pol!cyholder !s d!agnosed w!th any o the spec!!ed !llnesses% then the pol!cyholder !s pa!d the ent!re sum assured under the r!der. The l!e cover along w!th all the r!ders !s then term!nated. -owever% the pol!cy value accumulat!on cont!nues t!ll the end o the term or death% wh!chever !s earl!er.
Stan!a$one bene)its 7a%ai$ab$e 'it( Preier Li)e> Li)eTie> Li)eTie II> Fore%er Li)e> +rou6 Ter P$an> In%estS(ie$! Li)e> In%estS(ie$! Cas( an! In%estS(ie$! +o$!8 - I the pol!cyholder !s d!agnosed w!th any o the spec!!ed !llnesses% heshe !s pa!d the
r!der ,um Assured and the r!der term!nates. -owever% the #ase pol!cy cont!nues t!ll matur!ty. *rem!ums pa!d under th!s r!der are el!g!#le or ta& #ene!ts under ,ect!on 4D.
6a/or ,urg!cal Ass!stance R!der Th!s r!der prov!des ass!stance to the pol!cyholder aga!nst @< surg!cal procedures. These surg!cal procedures are d!v!ded !nto < categor!es and the e&tent o ass!stance prov!ded depends on the type o procedure.
•
6a/or procedures ;45 o the r!der sum assured !s pa!d.
•
Intermed!ate procedures <45 o the r!der sum assured !s pa!d
•
6!nor procedures :45 o the r!der sum assured !s pa!d
Th!s #ene!t !s paya#le on more than one occas!on when the l!e assured undergoes surgery. -owever the total #ene!t paya#le !n case o all the procedures !s restr!cted to a ma&!mum o ;45 o the sum assured. 6a/or ,urg!cal Ass!stance r!der !s ava!la#le w!th ,ave n0 *rotect% Cash 8ac$% !eT!me% !et!me II% orever !e% ,ecure*lus% Cash*lus and ,ecure*lus *ens!on. *rem!ums pa!d under th!s r!der are el!g!#le or ta& #ene!ts under ,ect!on14D. A33i!ent Disabi$it& "ene)it Ri!er 7AD"R8 )enefits payable on death due to an accident •
I the pol!cyholder d!es due to an acc!dent% 3445 o the r!der sum assured !s pa!d !n add!t!on to the #as!c sum assured.
•
In case the pol!cyholder d!es !n a land surace% mass pu#l!c transport system where!n the pol!cyholder was travel!ng as a are1pay!ng passenger% then :445 o the r!der sum assured !s pa!d.
3enefit! )a"a*#e in ca!e of )er(anent di!a*i#it" due to an accident I the pol!cyholder surv!ves an acc!dent #ut #ecomes permanently d!sa#led then •
the prem!um or the #as!c plan !s completely wa!ved o to the e&tent o the r!der sum assured. •
*lus% 345 o the r!der sum assured !s pa!d or the ne&t 34 years% wh!ch helps !n prov!d!ng that e&tra money and ta$es care o sudden !nanc!al set #ac$ that occurs ater a trag!c d!sa#!l!ty.
Acc!dent ' D!sa#!l!ty 8ene!t r!der !s ava!la#le w!th ,ave n0 *rotect% Cash 8ac$% ,mart !d Ch!ld *lans% *rem!er !e% !eT!me% !eT!me II% !eT!me *ens!on II% orever !e% ,ecure*lus% Cash*lus% ,ecure*lus *ens!on% !eguard RO*% !eguard KRO*% 2roup Term *lan% Invest,h!eld !e% Invest,h!eld Cash% Invest,h!eld 2old and Invest,h!eld *ens!on. In case o !et!me II% !et!me *ens!on II% ,ecure*lus% Cash*lus% !eguard RO* and !eguard KRO*% the wa!ver o prem!um #ene!t !s not ava!la#le. *rem!ums pa!d under th!s r!der are el!g!#le or ta& #ene!ts under ,ect!on .
A33i!ent "ene)it Ri!er 7A"R8-
I the pol!cyholder d!es due to an acc!dent% 3445 o the r!der sum assured !s pa!d !n add!t!on to the #as!c sum assured.
Acc!dent 8ene!t r!der !s ava!la#le w!th ,ave0n0*rotect% Cash 8ac$% ,mart !d regular prem!um% orever !e% ,ecure*lus% Cash*lus and ,ecure*lus *ens!on. *rem!ums pa!d under th!s r!der are el!g!#le or ta& #ene!ts under ,ect!on . Inco(e 3enefit %ider In case o death o the l!e assured dur!ng the term o the pol!cy% 345 o the r!der
sum assured !s pa!d annually to the #ene!c!ary% on each pol!cy ann!versary t!ll matur!ty o the r!der. Income 8ene!t r!der !s ava!la#le w!th ,mart !d Ch!ld *lans% ,ecure*lus and Cash*lus. *rem!ums pa!d under th!s r!der are el!g!#le or ta& #ene!ts under ,ect!on1D
Wai%er o) Preiu Ri!er 7WOP8
On total and permanent d!sa#!l!ty due to an acc!dent% all uture prem!ums or #oth the #ase pol!cy and r!der(s) w!ll #e wa!ved t!ll the end o the term o the r!der or death o the l!e assured% ! earl!er.
Ka!ver o *rem!um r!der !s ava!la#le w!th ,ecure*lus% Cash*lus% !eguard RO*% !eguard KRO*% ,mart !d Un!t1l!n$ed regular prem!um II% !et!me II% !eT!me *ens!on II% ,ecure*lus *ens!on% Invest,h!eld !e% Invest,h!eld Cash and Invest,h!eld *ens!on. *rem!ums pa!d under th!s r!der are el!g!#le or ta& #ene!ts under ,ect!on .
CHAPTER-
ANALYSIS AND INTERPRETATION OF DATA, *inimum and *a+imum (,e of Investor Ta#le ?.3 *inimum-*a+imum a,e Di))erent Co6an& ICICIIn%est s(ie$! $i)e, O 5ota; Ca6ita$ u$ti6$ier
.// 4=0/
"ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
,2.0/ 4/.
Tab$e s(o'in# Miniu an! Ma@iu A#e o) In%estor
Chart sho/ing in0estment age 58 48 s r a e y f o o n
*8 18
*1
48
*1
11
08 /8 8
+5
+1
+8 8
8./
8 Icici
om ota
Metlife
insurance companies Minimum age
Ma-imum age
2raph ?.3
+ra6( s(o'in# Miniu an! Ma@iu A#e o) In%estor
Ana$&sis
rom the a#ove ta#le we can clearly $now the m!n!mum ' ma&!mum age o the !nvestor ' the compar!son o age groups #etween @ !nsurance compan!es. In ICICI !nsurance can #e started #y the #!rth o ch!ld% wh!le !n others !t var!ous rom days to years. In O6 OTA !nsurance can #e started at 3 years. In 8IRA ,UN I+ !nsurance can #e started at <4 days and !n 6+T I+ !t !s rom 3; years.
In)eren3e rom the a#ove graph !t shows clearly that ICICI g!ves more opportun!ty to the Investors as !t starts #y the #!rth o ch!ld.
*inimum and *a+imum term for Investment Ta#le ?.: *inimum-*a+imum term Di))erent Co6an& ICICIIn%est s(ie$! $i)e,
4.2.
O 5ota; Ca6ita$ u$ti6$ier
/2.
"ir$aSun$i)eF$e@i sa%e P$us
/2.
MetLi)eMet sart
4.1.
Tab$e s(o'in# Miniu an! Ma@iu ter )or In%estent
2raph ?.:
chart sho/ing the terms of in0esment s 08 r a /8 e y f 8 o +8 o N 8
/8 +8 Icici
/8 1 Om ota
/8 8 +8
1
Metlife
Insurance companies Minimum years
Ma-imum years
+ra6( s(o'in# Miniu an! Ma@iu ter )or In%estent
Ana$&sis8y the a#ove ta#le we $now that !n ICICI the m!n!mum term or !nvestment !s 34 to <4 years% !n O6 OTA !t starts rom ; to <4 years. In 8IRA ,UN I+ !t starts rom ; to <4 years and wh!le !n 6+T I+ !t stars rom 34 to <; years.
Inerence>
rom the a#ove graph !t shows that !n O6 OTA and 8IRA ,UN I+ the terms starts rom ; years% wh!ch !s more le&!#le or !nvestment compar!son w!th ICICI and 6+T I+% wh!ch starts rom 34 years.
um assured by the insurance companies Tab$e 0,2 Di))erent Co6an& ICICIIn%est s(ie$! $i)e,
O 5ota; Ca6ita$ u$ti6$ier "ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
um assured O6tion to 3(oose a s6e3i)i3 $e%e$ o) su assure! as 6er &our nee!s> base! on a u$ti6$e o) &our annua$ 6reiu De6en!s on t(e aount o) 6reiu 6ai!, Miniu- Rs /.>... )or inors an! Rs />... )or a!u$ts De6en!s on t(e o6tion ta;en
Tab$e s(o'in# t(e su assure! b& t(e insuran3e 3o6anies
Analys!s>
rom the a#ove ta#le we can $now that !n 8IRA ,UNI+ the m!n!mum sum assured or m!nors !s ;4%444 ' or adults !t !s ;%444. Kh!le !n other !nsurance compan!es l!$e ICICI the sum assured !s #ased on the annual prem!um. In O6 OTA !t !s #ased on the amount o prem!um pa!d and wh!le !n 6+TI+ !t !s #ased on the opt!on too$ #y the !nvestor
Inerence> rom the a#ove ta#le !t shows clearly 8IRA ,UNI+ !s the most advantageous !n case o sum assurance wh!le compared to others.
The maturity benefit to investors Ta#le ?.@ Di))erent Co6an& ICICIIn%est s(ie$! $i)e, O 5ota; Ca6ita$ u$ti6$ier
"ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
*aturity benefit Hi#(er o) t(e %a$ue o) t(e unit )un! o) t(e #uarantee! %a$ue o) t(e unit )un!, Va$ue o) a33uu$ation a33ount or t(e SA '(i3(e%er is (i#(er> as a $u6 su or as s&steati3 'it(!ra'a$ Po$i3& )un! Po$i3& )un!
Tab$e s(o'in# t(e aturit& bene)it to in%estors Analys!s> rom the a#ove ta#le we can $now that the matur!ty #ene!t !n ICICI !s #ased on the guaranteed value o un!t und. In O6OTA the matur!ty depends on the value o accumulat!on account. In 8IRA ,UNI+ ' 6+T I+ the matur!ty !s purely #ased on the pol!cy und.
Inerence>
rom the a#ove ta#le !t shows clearly that matur!ty #ene!t !s worthwh!le !n ICICI when compared to other !nsurance compan!es.
The /eath benefit to investors Ta#le ?.; /eath benefit
Di))erent Co6an& ICICIIn%est s(ie$! $i)e, O 5ota; Ca6ita$ u$ti6$ier
"ir$aSun$i)eF$e@i sa%e P$us
MetLi)eMet sart
Su assure! Hi#(er o) t(e %a$ue o) t(e unit )un! or #uarantee! %a$ue o) t(e unit )un!, 7Su Assure! 6reius !ue but not 6ai!8 o) %a$ue o) a33uu$ation a33ount '(i3(e%er is (i#(er, Fa3e aount 6o$i3& )un! 7'(ere t(e 6o$i3& is bou#(t on or 6rior to t(e 4st birt(!a& o) t(e $i)e insure!> on$& 6o$i3& )un! is 6a&ab$e to t(e 6o$i3& o'ner in t(e e%ent o) !eat( o) t(e $i)e insure! 'it(in t(e )irst 6o$i3& &ear8 U6 to a#e o) 4..
Tab$e s(o'in# t(e Deat( bene)it to in%estors
Analys!s> rom the a#ove ta#le the death #ene!t !n 6+T I+ !s up to 77 years wh!ch !s e&tremely #ene!c!al when compared to ICICI where the death #ene!t !s sum assured L un!t und. In O6 OTA !t !s sum assured prem!um due. And !n 8IRA ,UNI+ !t !s ace amount L pol!cy und.
Inerence> rom the a#ove ta#le !t shows clearly that the death #ene!t !n 6+T I+ !s much more #ene!c!al than other !nsurance compan!es.
The ithdrawal benefit to investors Ta#le ?.? Di))erent Co6an& ICICIIn%est s(ie$! $i)e, O 5ota; Ca6ita$ u$ti6$ier "ir$aSun$i)eF$e@i sa%e P$us
MetLi)eMet sart
4ithdraa# *enefit
None Partia$ or 3o6$ete 'it(!ra'a$s are a%ai$ab$e )ro t(e 2r! &ear on'ar!s Partia$ or 3o6$ete 'it(!ra'a$s are a%ai$ab$e )ro t(e 2r! &ear on'ar!s, In a &ear 1 'it( !ra'$s are )ree o) 3(ar#e, For e%er& a!!itiona$ 'it(!ra'a$ a 3(ar#e o) Rs 4.. 'i$$ be $e%ie!, An& tie a)ter one &ear> )irst t'o 6artia$ 'it(!ra'a$s are )ree, T(e 3o6an& 'i$$ 3(ar#e Rs 1/. or 1K o) at 'it(!ra'n,
Ta#le show!ng the K!thdrawal #ene!t to !nvestors Analys!s> rom the a#ove ta#le !t !s clear that the w!thdrawal #ene!t !n ICICI !s non. In O6 OTA !t !s part!al or complete w!thdrawal ater < rd year !n 8IRA ,UNI+ the w!thdrawal #ene!t !s ava!la#le ater < rd year and !n a year two w!thdrawals are ree o charges. Kh!le !n 6+T I+ !s ater 3 year ' !rst two part!al w!thdrawals are ree.
Inerence> rom the a#ove ta#le !t shows clearly that the w!thdrawal #ene!ts are advantageous !n 8IRA ,UNI+ ' 6+T I+ wh!le compared to ICICI ' O6 OTA
The 1ontribution by investors Ta#le ?. Di))erent Co6an&
1ontribution
ICICIIn%est s(ie$! $i)e, O 5ota; Ca6ita$ u$ti6$ier
Miniu- Rs, =>... 6,a, Miniu- Rs, 4.>... 6,a,
"ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
Sube3t to a iniu )a3e aount o) Rs /.>... )or inors an! Rs />... )or a!u$ts Miniu- Rs 1.><. 6,a
Ta#le show!ng the Contr!#ut!on #y !nvestors
2raph ?.< Contribution
5888 .8748
+8888
ICICI OM !O%A!
2raph show!ng the Contr!#ut!on #y !nvestors
Analys!s> rom the a#ove ta#le we can $now that m!n!mum contr!#ut!on to #e pa!d !n ICICI !s Rs. 444. In O6 OTA Rs 34444% !n 8IRA ,UNI+ Rs ;4444 or m!nors and ;444 or ma/ors. In 6+TAI+ !t !s :474 p.a.
Inerence> rom the a#ove graph% !t shows clearly that the contr!#ut!on !n ICICI w!ll #e most #ene!c!ar!es to the !nvestors compared to other !nsurance compan!es.
The +tended life covera,e to investors Ta#le ?. Di))erent Co6an& ICICIIn%est s(ie$! $i)e,
O 5ota; Ca6ita$ u$ti6$ier "ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
+tended life covera,e Pro%i!e! t(e 6o$i3& is in )or3e ti$$ aturit&> a!!itiona$ 3o%era#e )or /.K o) t(e su assure! 'i$$ be a%ai$ab$e )or t(e ne@t 4. &ears, Not a%ai$ab$e Not a%ai$ab$e Pro%i!e! t(e 6o$i3& is in )or3e ti$$ aturit&, A!!itiona$ 3o%era#e ti$$ <<&ears o) t(e 6o$i3&(o$!er,
Tab$e s(o'in# t(e e@ten!e! $i)e 3o%era#e to in%estors
Analys!s> rom the a#ove ta#le we can $now that the e&tended l!e coverage o prov!ded !n ICICI% wh!ch !s when the pol!cy !s% matured the add!t!onal coverage or ;45 o sum or the ne&t 34 years. In 6+TI+ ! the pol!cy !s orced to matur!ty the add!t!onal coverage !s prov!ded t!ll 77 years o !nvestors. In O6 OTA and 8IRA ,UNI+ there are no such prov!s!ons.
Inerence> rom the a#ove ta#le% the e&tended l!e coverage !n 6et!e !s most #ene!c!al compared to ICICI.
3le+ibility to increase or decrease the contribution by investors Ta#le ?.7 Di))erent Co6an& ICICIIn%est s(ie$! $i)e,
O 5ota; Ca6ita$ u$ti6$ier "ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
Increase 4 decrease contribution T(e a@iu !e3rease in t(e 6reius 3an be u6 to 1.K o) t(e initia$ 6reiu 3(osen b& t(e 6o$i3&(o$!er at t(e tie o) in3e6tion o) t(e 6o$i3&, Ho'e%er> in no 3ir3ustan3es 3an t(e 6reiu be re!u3e! to be$o' Rs, =>... or =.K o) t(e initia$ 3(osen 6reiu> '(i3(e%er is (i#(er, Ho'e%er> t(ere is no 3a6 on in3reasin# t(e 6reiu, T(e 6reius 3an be in3rease! 'it( or 'it(out t(e in3rease in su assure!,
Not a%ai$ab$e Not a%ai$ab$e Not $iite!
Tab$e s(o'in# t(e F$e@ibi$it& to in3rease or !e3rease t(e 3ontribution b& in%estors Analys!s> rom the a#ove ta#le% the le&!#!l!ty to !ncrease or decrease the !nvestor0s contr!#ut!on% !n 6+TI+ !s restr!cted wh!le !n ICICI !t can #e decreased to :45 or up to 45 and !ncreased !n prem!um !s not an !ssue. O6 OTA and 8IRA ,UNI+ do not prov!de such ac!l!t!es.
Inerence> rom the a#ove ta#le% !t shows clearly that the le&!#!l!t!es to !ncrease or decrease the !nvestors0 contr!#ut!on are outstand!ng !n 6+TI+% wh!le compared to ICICI.
The Investment options to investors Ta#le ?.34 Di))erent Co6an& ICICIIn%est s(ie$! $i)e,
O 5ota; Ca6ita$ u$ti6$ier
"ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
Investment options A sin#$e unit )un! 'it( an asset a$$o3ation o) iniu .K in !ebt an! a a@iu 2.K in e*uit&, No o6tion to 3(oose &our in%estent, T(e 6reiu a)ter t(e !e!u3tions is ust )unne$e! into a a33uu$ation a33ount '(i3( is in%este! as 6er t(e ris; a66etite an! obe3ti%es o) t(e 3o6an& Prote3tor> "ui$!er En(an3er More t(an 0 o6tions to in%est
Tab$e s(o'in# t(e In%estent o6tions to in%estors +ra6( 0,
Investment options
+
8
ICICI OM !O%A! / *
+ra6( s(o'in# t(e In%estent o6tions to in%estors
Analys!s> rom the a#ove ta#le% we can $now that the !nvestment opt!ons !n ICICI *rudent!al are s!ngle un!t und. In O6 OTA% no opt!on to choose. In 8IRA ,UNI+ < opt!ons are ava!la#le. Kh!le !n 6+TI+% more opt!ons are ava!la#le as much as ?.
Inerence> rom the a#ove graph% we can $now that the !nvestment opt!on !n 6+TI+ !s #etter w!le compared to other !nsurance compan!es.
The urrender value Tab$e 0,44 Di))erent Co6an& ICICIIn%est s(ie$! $i)e,
O 5ota; Ca6ita$ u$ti6$ier "ir$aSun$i)e F$e@i sa%e P$us
MetLi)eMet sart
Surren!er %a$ue T(e surren!er %a$ue o) t(e 6o$i3& is a%ai$ab$e a)ter t(e 4st &ear an! 'ou$! !i))er )ro &ear to &ear, T(e surren!er %a$ue is 6ai! out as a Kta#e o) t(e %a$ue o) t(e unit )un!, More t(an 4 &ear- 4.K, A)ter 1 &ears 1.K, A)ter 2 &ears 2.K, A)ter &ears .K, A)ter / &ears /.K, A)ter 0 &ears 0.K, A)ter &ears .K, A)ter = &ears =.K, A)ter < &ears <.K, A)ter 4. &ears an! ore
T(e surren!er 3(ar#es 'i$$ be 4..K o) t(e annua$ie! 6reiu )or t(e )irst 1 ont(s o) t(e 6o$i3&, It 'i$$ be 1K in ont( 1/ an! 'i$$ re!u3e b& 4K e%er& ont( t(erea)ter an! 'i$$ be ero )ro t(e
A)ter 2 &ears 1.K, A)ter &ears 2.K, A)ter / &ears .K, A)ter 0 &ears /.K, A)ter &ears 0.K, A)ter = &ears .K, A)ter < &ears =.K, A)ter 4. &ears <.K, A)ter 44 &ears t(ere a)ter
Tab$e s(o'in# t(e Surren!er %a$ue
+ra6( 0,/
#G&&6"26& @ALG6
+ /
ICICI OM !O%A!
M6% LIF6
.
+ra6( s(o'in# t(e Surren!er %a$ue
Analys!s> rom the a#ove ta#le% we can $now that the surrender value !n ICICI starts rom 3st year. In O6 OTA !t starts rom < rd year. In 8IRA ,UNI+ !t starts rom : nd year wh!le !n 6+TI+ !t starts rom < rd year.
Inerence>
rom the a#ove graph% we can $now that the surrender value !n ICICI starts ater 3st year !s 345% wh!ch !s comparat!vely #etter than other !nsurance compan!es.
(utomatic 'remium payment to investors Ta#le ?.3: Di))erent Co6an& ICICIIn%est s(ie$! $i)e,
O 5ota; Ca6ita$ u$ti6$ier "ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
(utomatic 'remium payment I) t(e ter i) t(e 6o$i3& is $ess t(an 4/ &ears> t(en t(is )a3i$it& 3an be a%ai$e! on3e an! t'i3e i) t(e ter is #reater t(an or e*ua$ to 4/ &ears, Not a%ai$ab$e Not a%ai$ab$e Initia$ 2 &ears as 6er s3(e!u$e s(ou$! be 6ai! t(en u 3an a%ai$ t(is o6tion
Tab$e s(o'in# t(e Autoati3 Preiu 6a&ent to in%estors
Analys!s>
rom the a#ove ta#le% we can $now the automat!c prem!um payment !n ICICI !s less than 3; years pol!cy and ac!l!ty can #e ava!la#le 3 and tw!ce. Kh!le !n 6+TI+ !n!t!al < years o prem!um should #e pa!d and then !nvestors have the ac!l!ty o not pay!ng or nom!nal o : to < years. In O6 OTA and 8IRA ,UNI+ there !s no such ac!l!ty prov!ded. Inerence> rom the a#ove ta#le% the automat!c prem!um payment !n 6+TI+ !s #ene!c!ary to the !nvestors compared to ICICI% #ecause !nvestor has the opt!on o stopp!ng the prem!um or a certa!n per!od o t!me.
Increase 4 decrease of death benefit to investors Ta#le ?.3<
Di))erent Co6an&
Increase 4 decrease of death benefit
ICICIIn%est s(ie$! $i)e, O 5ota; Ca6ita$ u$ti6$ier
Not a%ai$ab$e Not a%ai$ab$e
"ir$aSun$i)eF$e@i sa%e P$us
Can be !one on3e in e%er& / &ears, T(e iniu aount o) 3(ar#e 'i$$ be Rs, /.>..., T(is 3(ar#es 'i$$ resu$t in a 3(an#e in t(e 6reius to be 6ai! an! 'i$$ be sube3te! to t(e 6erissib$e $iits o) inius )a3e aount A)ter t(e )irst t(ree 6o$i3& &ears> (a%e a bene)it )or on3e a &ear,
MetLi)eMet sart
Tab$e s(o'in# t(e In3rease ? !e3rease o) !eat( bene)it to in%estors
Analys!s>
rom the a#ove ta#le% we can $now that the death #ene!t can #e ta$en once !n ; year !n 8IRA ,UNI+ and !n 6+TI+ the death #ene!t prov!s!ons can #e ta$en ater < years% wh!le !n ICICI and O6 OTA th!s prov!s!on !s not ava!la#le. Inerence> rom the a#ove ta#le% we can $now that the death #ene!t !n 6+TI+ !s super!or to 8IRA ,UNI+ as !t can #e ta$en ater < years and can have a #ene!t to change once a year.
(dditional credits to investors Ta#le ?.3@
(dditional credits
Di))erent Co6an& t(
ICICIIn%est s(ie$! $i)e,
En! o) t(e / 6o$i3& &ear- 4.K o) t(e initia$ annua$ 6reiu, En! o) t(e 4.t( 6o$i3& &ear- 4/K o) t(e initia$ annua$ 6reiu, En! o) t(e 4/t( 6o$i3& &ear- 1.K o) t(e initia$ annua$ 6reiu En! o) t(e 1.t( 6o$i3& &ear- 1/K o) t(e initia$ annua$ 6reiu, En! o) t(e 1/t( 6o$i3& &ear- 2.K o) t(e initia$ annua$ 6reiu, En! o) t(e 2.t( 6o$i3& &ear- 2/K o) t(e initia$ annua$ 6reiu,
O 5ota; Ca6ita$ u$ti6$ier
Not a%ai$ab$e
"ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
Not a%ai$ab$e Not a%ai$ab$e
Tab$e s(o'in# t(e A!!itiona$ 3re!its to in%estors +ra6( 0,0 1 1 0 / . +
8
8
8
8 ICICI
OM !O%A!
M6%LIF6
#G"LIF6
Companies additonal credits
2raph show!ng the Add!t!onal cred!ts to !nvestors Analys!s> rom the a#ove ta#le% we can $now that% the add!t!onal cred!t g!ven #y the ICICI starts rom ;th year and ends at <4 th year wh!le !n other compan!es such ac!l!t!es are not prov!ded.
Inerence>
rom the a#ove graph% we can $now that add!t!onal cred!ts are only g!ven !n ICICI #ut not !n other !nsurance compan!es.
3le+ibility of Top-up to investors Ta#le ?.3;
Di))erent Co6an&
Top-up
ICICIIn%est s(ie$! $i)e, O 5ota; Ca6ita$ u$ti6$ier
A%ai$ab$e> 'it( a iniu to6u6 o) Rs, />...
"ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
Not a%ai$ab$e Du6 in 6reiu are a%ai$ab$e u6 to 1/>...
A%ai$ab$e
Tab$e s(o'in# t(e )$e@ibi$it& o) To6u6 to in%estors
Analys!s>
rom the a#ove ta#le% we can $now that the top1up ac!l!ty !n ICICI !s up to Rs. ;444. In O6 OTA !t !s ava!la#le (#ut not d!sclosed). And !n 6+TI+ !t !s up to Rs. :;444. !nally !n 8IRA ,UNI+ the top1up ac!l!ty !s not ava!la#le. Inerence> rom the a#ove ta#le we can clearly descr!#es that the top1up ac!l!ty !n 6+TI+ !s #etter compared to ICICI and O6 OTA.
3le+ibility of witch to investors Ta#le ?.3? Di))erent Co6an& ICICIIn%est s(ie$! $i)e, O 5ota; Ca6ita$ u$ti6$ier "ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
witch
Not a66$i3ab$e Not a66$i3ab$e 4 )ree s'it3( 6er &ear, For e%er& a!!itiona$ s'it3(> a 3(ar#e o) Rs, 4..'i$$ is $e%ie!, 4st s'it3( o) t(e 6o$i3& )ree, An& tie a)ter t(e )irst t(ree ont(s )or ea3( s'it3(, Co6an& 3(ar#es ..? or .,./K o) t(e ant on s'it3(e!,
Tab$e s(o'in# t(e )$e@ibi$it& o) S'it3( to in%estors
Analys!s>
rom the a#ove ta#le% !t0s clear that !n 8IRA ,UNI+ one ree sw!tch per year can #e made and or every add!t!onal sw!tch
they charged Rs. 344% wh!le !n 6+TI+ ree sw!tch can #e made ater < months o the pol!cy and the !rst sw!tch o the pol!cy !s ree. Ater that every sw!tch costs Rs. @44 o the amount sw!tched. In ICICI and O6 OTA there !s no such sw!tch!ng ac!l!ty ava!la#le. Inerence> rom the a#ove ta#le% we can $now that the sw!tch ac!l!ty !n 6+TI+ !s good when compared to 8IRA ,UNI+.
Initial char,e to the investors Ta#le ?.3 Di))erent Co6an& ICICIIn%est s(ie$! $i)e,
O 5ota; Ca6ita$ u$ti6$ier "ir$aSun$i)eF$e@i sa%e P$us
MetLi)eMet sart
Initial char,e 4/>...4st &ear .K 1 n! &ear <.K 2 r! &ear on'ar!s <K 4/>...1><<< 4st &ear 1K 1n! &ear <1K 2r! &ear on 'ar!s <K 1/>...<><<<4st &ear /K 1n! &ear <1K 2r! &ear on 'ar!s- <K /.>...4st &ear K 1n! &ear <1K 2 r! &ear on 'or!s <K
Not !is3$ose! / or #reater ter- 4st &ear 1<,
Tab$e s(o'in# t(e Initia$ 3(ar#e to t(e in%estors
Analys!s>
rom the a#ove ta#le% we can $now that !n ICICI the !n!t!al charges vary accord!ng to the prem!um pa!d. In O6 OTA !t !s not descr!#ed. In 8IRA ,UNI+ !t !s :7.75 or the !rst year and !n 6+TI+ !rst year :44(per month) and second ; (per month). Inerence> rom the a#ove ta#le% !t !s clear that the !n!t!al charges var!es rom company to company depend!ng upon the!r prem!um pa!d.
howin, (dmin char,e to the investors Ta#le ?.3 (dmin char,e
Di))erent Co6an& ICICIIn%est s(ie$! $i)e, O 5ota; Ca6ita$ u$ti6$ier
A!in 3(ar#e o) Rs /.?ont(
"ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
Po$i3& a!in )ees Rs, 11 6er ont(, "ase 6reiu ,.K !u6 in 6reiu 2,/K
Not !is3$ose!
Tab$e s(o'in# t(e A!in 3(ar#e to t(e in%estors
Analys!s> rom the a#ove ta#le% we can $now that the adm!n charges% !n ICICI are Rs. ;4 per month. In O6 OTA not d!sclosed. In 8IRA ,UNI+ Rs. :: per month. In 6+TI+ #ase prem!um 5 L dump !n prem!um <.;5.
Inerence> rom the a#ove ta#le% we can $now that the adm!n charge var!es orm company to company accord!ng to the!r !nternal rules.
Fund (anage(ent charge to the in-e!tor! Ta#le ?.37 3und mana,ement char,e
Di))erent Co6an& ICICIIn%est s(ie$! $i)e, O 5ota; Ca6ita$ u$ti6$ier
Re#u$ar ana#eent 3(ar#e o) 4,1/K 6,a, on t(e )un! %a$ue Not !is3$ose!
"ir$aSun$i)eF$e@i sa%e P$us MetLi)eMet sart
In%estent #t )ee 4K 6,a, Ma@iu o) 1,/K 6,a
Ta#le show!ng the und management charge to the !nvestors
2." 2 1." 1 ."
ICICIIn0est shield life (m 3ota4 Capital multiplier &irla#unlife$le5i sa0e Plus 6et'ife6et smart
ministration Charges p.a
or O6 ota$ the general v!ew #ased on other Insurance compan!es !s ta$en to calculate the annual adm!n!strat!on charges.
Analys!s> rom the a#ove ta#le% we can $now that the und management charges !n ICICI are 3.:;5 p.a. In O6 OTA not ment!oned. In 8IRA ,UNI+ !t !s 35 p.a. And !n 6+TI+ !t !s ma&!mum o :.;5 p.a.
Inerence> rom the a#ove ta#le% we can clearly $now that the und management charge !s ma&!mum !n 6+TI+ wh!le compared to ICICI and 8IRA ,UNI+.
%ider5! *enefit to the in-e!tor! Ta#le ?.:4
Di))erent Co6an&
Riders
ICICIIn%est s(ie$! $i)e,
AD"R> WOPR CI"R
O 5ota; Ca6ita$ u$ti6$ier
Ter Ri!er ? CI ? AD"R
"ir$aSun$i)eF$e@i sa%e P$us
AD"R> CI"R> Ter
MetLi)eMet sart
Not a%ai$ab$e
Ta#le show!ng the R!ders #ene!t to the !nvestors
Analys!s> rom the a#ove ta#le% we can $now that the r!ders prov!ded #y ICICI are <. In O6 OTA also < and 8IRA ,UNI+ aga!n < and !n 6+TI+ !s has not #een d!sclosed.
Inerence> rom the a#ove ta#le% we can $now that there are d!erent r!ders !n d!erent !nsurance compan!es accord!ng to ava!la#!l!ty.
F%OM ALL THE A3O6E &ATA / INTE%P%ETATION A SUMMA%I7E& TA3LE IS AS 3ELO4 The #est !nsurance company !n the un!t1l!n$ed plan Ta#le ?.:3 FEATU%ES 8 INSU%ANCE COMPANIES
ICICI P%U&ENTIAL IN6EST 9
OM OTA 9 Ca)ita#
3I%LA SUNLIFE 9 F#e.i Sa-e
MET LIFE 9Met
AGE TE%M SUM$ASSU%E& MATU%ITY 3ENEFIT &EATH 3ENEFIT 4ITH&%A4AL 3ENEFIT CONT%I3UTION E
Tota#
SHIEL& LIFE;
Mu#ti)#ier;
P#u!;
S(art;
3 4 4 3 4 4 3 4
4 3 4 4 4 4 4 4
4 3 3 4 4 3 4 4
4 4 4 4 4 3 4 3
4
4
4
3
3 3 4
4 4 4
4 4 4
3 4 3
4
4
4
3
3 4 4 3 3 4
4 4 4 3 3 4
4 4 4 3 3 3
4 3 4 3 4 4
3
3
3
4
@
34
Tab$e s(o'in# t(e best insuran3e 3o6an& in t(e unit$in;e! 6$an
+ra6( 0,
+8 5
4
* Points )ained
+8
5
0
0 8 icici
#+
om ota
birla sunlife Insurance Companies
met life
#eries+ +ra6( s(o'in# t(e best insuran3e 3o6an& in t(e unit$in;e! 6$an
Conclus!on or the a#ove graph cons!der!ng the summar!=ed ta#le Out o :4 eatures ta$en or compar!sonB ICICI has ga!ned = po!nts% O6 OTA has ga!ned po!nts% 8IRA ,UNI+ has ga!ned po!nts ' 6+T I+ has ga!ned 4. po!nts. 1onsiderin, the above points ,ained by this insurance companies it has been ran5ed as under6
Ran;s 4 1 2
Insuran3e 3o6anies 'it( nae o) t(e 6o$i3& ICICI *RUD+NTIA Invest ,h!eld !e 6+T I+ 6et ,mart 8IRA ,UNI+ le&! ,ave *lus O6 OTA Cap!tal 6ult!pl!er
C-A*T+R> ;
SUMMARY OF FINDIN+S> CONCLUSION AND RECOMMENDATIONS
FINDIN+S
ICICI g!ves more opportun!ty to the !nvestors !n Age actor as !t starts rom the #!rth o the ch!ld.
The
Term or !nvestment !n 6+T I+ starts rom 341:4%
wh!ch !s not as le&!#le as other !nsurance compan!es.
The ,um assured !n 8IRA ,UNI+ s o m!n!mum1;4% 444 or m!nors ' ;%444 or ma/ors wh!ch !s much more h!gher than others.
In ICICI the 6atur!ty #ene!t !s advantageous when compared to O6 OTA% 8IRA ,UNI+ ' 6+T I+.
The Death #ene!t !n 6+T I+ s #ene!c!al as !t covers up to the age o 344.
In ICICI there !s no w!thdrawal #ene!t when compared to others.
The Contr!#ut!on !n ICICI !s Rs 444 p.a.% wh!ch !s aorda#le #y all type o !nsurance !nvestors.
In 6+T I+ the +&tended l!e coverage ac!l!ty !s most #ene!c!al as !t covers t!ll the age o 77.
The le&!#!l!ty to Increase Decrease the Investors contr!#ut!on !s outstand!ng !n 6+T I+.
Investors have a #est opt!on to !nvest as much as s!& (opt!ons) !n 6+T I+.
The ,urrender value !n ICICI has a greater value as !t starts ater 3 st year% wh!ch !s 345.
The Automat!c prem!um payment !n 6+T I+ has got the opt!on to !nvestors to stop the prem!um or a certa!n per!od o t!me.
The le&!#!l!ty to Increase Decrease the death #ene!t !n 6+T I+ !s most
#ene!c!al.
The Add!t!onal cred!ts are g!ven to !nsurance !nvestors only !n ICICI% #ut not !n
others.
The Top1up ac!l!ty !n 6+T I+ !s #etter as !t allows to dump1!n as much as Rs.
:;%444.
The ,w!tch ac!l!ty !n 6+T I+ !s relevant than 8IRA ,UNI+.
The In!t!al charges o the !nsurance compan!es vary depend!ng upon the!r
prem!um pa!d.
The Adm!n charges o the !nsurance compan!es vary accord!ng to the!r !nternal
rules.
The und management charges !n 8IRA ,UNI+ are more aorda#le #y an
!nvestor.
The R!ders ac!l!ty d!ers rom company to company accord!ng to pol!cy.
CONCU,ION, Num#ers o actors were ta$en !nto cons!derat!on #eore reach!ng a conclus!on a#out the !nsurance ' ICICI *RUD+NCIA I+ IN,URANC+ compan!es. That !s overall perormance o IN"+,T ,-I+D I+ !nclud!ng ollow!ng actors.
Investors are en/oy!ng the cheap loans prov!ded #y the #an$s wh!ch shows that there w!ll urther act!v!ty down the l!ne. Insurance has a un!9ue eature% !.e.% r!s$ cover or l!e. +ven through return !s !n !nsurance% !t !s !mportant !nstrument !n !ts portol!o to ul!ll the monetary loss o the !nvestors towards the!r dependants. 8y entry o pr!vate !nsurance players !n the mar$et% there are new products% wh!ch also ta$e care o your !nvestments. ong1term pol!c!es are #etter than med!um term and short1term pol!c!es or #etter uture arrangements. *r!vate l!e !nsurances are do!ng well !n Ind!an mar$et #y prov!d!ng !nnovat!ve products and #etter serv!ces to the customers. *eople mostly go or ch!ld0s plan to meet the uture need o the!r ch!ldren. The company #el!eves that the corporate plans ormulated !n response to !ts an&!ety or systemat!c long range plann!ng% w!ll serve as a v!tal and dynam!cs document wh!ch gu!de the company !n the year that d!e a head. It !s reasona#ly certa!n that some o the assumpt!on on wh!ch th!s plans to #e val!d through the planned years. +ven the corporate plann!ng e&erc!se w!ll prov!de eect!ve trust and d!rect!on to the organ!=at!on as select!on !ts uture and del!#erate strateg!c dec!s!on ma$!ng. The customers and employees o the company are ul!ll!ng the!r role that has #een ass!gned to them. The company0s uture apprehens!on !s l!es on the head o !ts customers.
RECOMMENDATIONS
To ma$e !nvestment !n !nsurance one should #e aware o d!erent !nvestment strateg!es and ways to allocate the assets.
Ind!an !nanc!al ,ystem !s chang!ng rap!dly w!th changes come a lots o challenges and !t !s only the alert and #ehav!ors o !nvestors w!th a long1term th!n$!ng w!ll success to meet all the!r uture unseen challenges.
6ore reputat!on !s needed or the company% as !nsurance pol!c!es are sold on the #as!s o rel!a#!l!ty.
There should #e the arrangement o drop1#o&es !n all1!mportant places !n the c!ty.
As all $nows advert!sement can0t sell the pol!c!es #ut the people can do the same. ,o they should #e aware o the products o the company and #ene!ts o those products.
Company should concentrate on the :;1<4 year age group% #ecause th!s !s the t!me when people show more !nterest !n !nvestment.
There should #e low prem!um amount !n the ur#an area. ,o that even low1 !ncome group people can also !nvest the!r money !n pol!c!es.
Company should g!ve spec!al tra!n!ng to the!r !nsurance consultants t!me #y t!me.
There should #e some arrangement o telecast!ng the!r products !n reg!onal telev!s!on !n order to reach the rural people.
To ma$e !nvestment !n !nsurance one should #e aware o d!erent !nvestment strategy ' ways to allocate the assets% the deta!l descr!pt!on !s g!ven #elow.
Ta#le show!ng the d!erent !nvestment strateg!es and ways to allocate the asset Li)e
A#e
Cir3ustan3es
Strate#&
Li)e
C&3$e Youn#
Insuran3e 1.s
A!u$t
Has no !e6en!ent> (as
Li)e
insuran3e
"u& on$& i) &ou
ta;en 3ar ? bi;e $oan>
nee!s
$o'
(a%e
in%ertib$e sur6$us $o',
a33uu$ate! #ro't(> ta;in#
Youn#
2.s
C(i$!ren an! s6ouse
as
!e6en!ents, ris;
abi$it&
(i#( at t(is sta#e, S(ou$!G%e
is Subtra3t
Fai$&
a& be !e6en!ent (as
a!e*uate
$i)e
ta;en (oe $oan> starts
insuran3e
an!
)ro
3urrent
in%ertib$e in earnest,
asset
6rote3tion
nee!s
an!
3ontinue
3o%er
t(e
an! a##ressi%e
Mature
.s
Fai$&
Hi#(
e!u3ation
#ro'n
u6
Hoe
$oan
o)
3(i$!ren,
'ea$t(
e@istin#
assets
!i))eren3e,
3reation, Nee!s $o' as asset
Maintain
base
3o%er
bui$!s
u6
t(e o)
near$&
s(ou$! 3$ear !ebts
ba$an3e
ra6i!> in3oe 6ea;in#>
start !e(is3in#
s(orter e@istin#
in%ertib$e sur6$us (i#(,
in%estent
assets,
6ort)o$io
t(e
b&
!e6$o&in# )un!s in
E6t&
/.s
are
sa)er instruents, Di%ert ne' sur6$us
Co%ers as $on#
(oe
to 6ai! retireent
as
$oan re6ai!> no ot(er
3or6us>
earnin#s,
!ebts>
6ort)o$io ris;,
C(i$!ren in!e6en!ent>
Nesters
in%ertib$e
sur6$us
Retire!
0.
6ea;>
re!u3e
&ou
are
an!
6re6aration
)or
$i*ui!ation, Hea$t(
e@6enses
Create
a!e*uate
re6$a3e 'or; re$ate!
3as(
)$o's
e@6enses
sa)e
in%estents>
3reatin#
)ro
No $i)e 3o%er nee!e!,
Your
retireent
re#u$ar 3as( )$o's
in%est sur6$us in
3or6us
beatin#
instruents
t(at
no' )un! &our
3o)ortab$e
bat
in)$ation
to6 6riorit&,
are
in)$ation
s(ou$!
nee!s,
to
6re%ent erosion o) retireent 3a6ita$,
For The Further %e!earch
Ind!an !nanc!al ,ystem !s the #!ggest !n the world. In post *2 per!od% the scenar!o !s 9u!t comple& and challeng!ng. +very sunr!se !s see!ng the r!se o new !nanc!al products along w!th new
!nvestment strateg!es and evaluat!on o those strateg!es. ,o% !t g!ves a#ulous opportun!t!es or urther research !n ollow!ng areas. %e!earch can *e he#d on
The Impact o pr!vat!=at!on o Ind!an !nanc!al ,ystem.
Comparat!ve analys!s o d!erent mar$et products and unds.
8y ta$!ng any one type o !nanc!al !nstruments.
On #u!ld!ng the portol!o o the !nvestor.
Recently !ntroduced products !n the mar$et.
"I"LIO+RAPHY 8oo$s> 4, I,M,Pan!e& !nanc!al 6anagement% th +d!t!on% "!$as *u#l!cat!on% New Delh!. 1, Prasanna C(an!ra Investment Analys!s and *ortol!o 6anagement C6 T6- *roess!onal ,erv!ces !n !nance% Tata 6ac2raw -!ll. 2, Dr, ",+,Sat(&6rasa! !nanc!al management% :nd +d!t!on% -!malaya *u#l!cat!on% New Delh!. , L,M,"(o$e !nanc!al Inst!tutes and 6ar$ets% < rd +d!t!on% Tata 6ac2raw -!ll.
6aga=!nes> The Chartered Accountants
Insurance Industry% June :44<104@% "olume> 1 ;3% No> 3: Journal o the Inst!tute O Chartered Accountants O Ind!a. Insurance *ost Outloo$ 6oney Dalal ,treet Investment 6on!tor
K+8,IT+,> ''',ir!ain!ia,or#
''',i3i3i6ri$i)e,3o
''',et$i)e,3o
''',one&3ontro$,3o
ANNEQURE, UESTIONNAIRE,
I> Mr,Iranna S(i%a$in#a66a> Fina$ Seester un!er "an#a$ore Uni%ersit&> an! !oin# & 6roe3t in Co6arati%e Stu!& on In%est s(ie$! $i)e 'it( s6e3ia$ re)eren3e to ICICI Pru!entia$Gs 'it( ot(er 3o6anies, I 'i$$ be %er& u3( t(an;)u$ i) &ou s6are )e' oents o) &our 6re3ious tie 'it( e to #i%e t(e ans'er o) )o$$o'in# *uestions> '(i3( 'i$$ be o) #reat (e$6 to e, 4, W(at is t(e nae o) t(e 6o$i3&> '(i3( (as )eatures $i;e Unit$in;e! 6$an 1, W(at s(ou$! be t(e iniu a@iu A#e o) t(e 6o$i3& in t(is 6o$i3& 2, W(at are t(e iniu a@iu Ters o) t(is 6o$i3& , W(at is t(e a3tua$ Su assure! aount in t(is 6o$i3& /, W(at are t(e )a3i$ities o) Maturit& bene)it a%ai$e! in t(is 6o$i3& 0, W(at is t(e )a3i$it& o) Deat( bene)it a%ai$ab$e in t(is 6o$i3& , Do &ou (a%e an& Wit(!ra'a$ bene)it in t(is 6o$i3& Yes
No
I) &es Ho' '(en it 'i$$ be a%ai$ab$e to 6o$i3&(o$!er =, W(at is t(e iniu Contribution o) 6reiu 6ai! in t(is 6o$i3&
<, Do &ou (a%e an& a!!itiona$ bene)it $i;e E@ten!e! $i)e 3o%era#e in t(is 6o$i3& Yes
No
I) &es W(at are its bene)its (o' it 3an be a%ai$ab$e to 6o$i3&(o$!er 4., Is t(ere an& )$e@ibi$it& to In3rease ? De3rease t(e 3ontribution in t(is 6o$i3& Yes
No
I) &es W(at are t(e $iitations 44, W(at are t(e %arious In%estent o6tions in t(is 6o$i3&
41, Do &ou (a%e t(e )a3i$it& o) terinatin# t(is 6o$i3& be)ore t(e en! o) t(e ter 3$osin# 7Surren!er %a$ue8 Yes
No
I) &es
W(at are its s3(e!u$es )ro '(en it is %a$ue! 42, Do &ou a$$o' &our 6o$i3&(o$!er to ta;e a brea; )ro 6reiu 6a&ent 7Autoati3 6reiu 6a&ent8 Yes
No
I) &es
W(en (o' ter 'or;s 4, Is t(ere an& )$e@ibi$it& to In3rease ? De3rease !eat( bene)it o6tion Yes
No
I) &es Su##est t(e o!e 6attern 4/, Wou$! &ou 6a& an& A!!itiona$ 3re!its to 6o$i3&(o$!er at an& 6oint o) tie !urin# t(e 6o$it& ter Yes
No
I) &es Mention its stru3ture )ro '(en it starts 40, Do &ou a$$o' t(e sur6$us )un!s to in%est as a To6u6 Yes I) &es
No
