20 Zijbemr March12 Vol2 Issue3

ZENITH International Journal of Business Economics & Management Research
Vol.2 Issue 3, March 2012, ISSN 2249 8826

Online available at http://zenithresearch.org.in/
FINANCIAL PERFORMANCE OF LIFE INSURANCE COMPANIES

AND PRUDUCTS
V.NEELAVENI*
*Lecturer,
School of commerce and management,
Dravidian university, kuppam.
ABSTRACT
Future is associated with uncertainty. Uncertainty is a universal risk for the mankind. Such
type of risk is to be controlled or avoided or financed by everybody. Many types of risk
management techniques are there. Insurance is one of the best risk financing techniques.
With reforms of regulations and opening up of the insurance sector to the private
management in the year 1999, it can be seen the tough competition in the insurance industry.
The number of General insurance and Life insurance companies have been increasing in the
21st century. The ultimate person is an investor or customer, who has to get the update
information, observe keenly the performance of the companies and their attractive products.
The evaluation of financial performance of the life insurance companies is essentially needed
to select a best life insurance policy. Five life insurance companies are randomly selected at
the time of 2002-03 and evaluated its performance in this endeavor.
___________________________________________________________________________
INTRODUCTION
The article presents a brief profile of the companies that have been selected as sample units.
The companies that are covered: LIC, ICICI Prudential Life Insurance Company Limited,
Bajaj Allianz Life Insurance Company Limited, Birla Sunlife Insurance Company Limited
and ING Vysya Life Insurance Company Private Limited.
1. LIFE INSURANCE CORPORATION OF INDIA
2. Spreading life Insurance widely, particularly to the rural areas and to the socially and
economically backward classes with a view to reaching all insurable persons in the country
and providing them adequate financial cover against death at a reasonable cost.
3. Maximizing mobilization of peoples savings through insurance.
4. Providing good returns to the policyholders (insureds) by investing in attractive securities.
1
Tryst with Trust, the LIC Story, PR& publicity, Yogakshema, (Bombay; 1991), Pp.45-46.
233
1. Meeting the various life insurance needs of the community that would arise in the changing
social and economic environment.
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The symbol of Life Insurance Corporation of India (LIC) gives the message of protection to
light the lamps of security in as many homes as possible and to help the people in providing
protection to their families.1 The LIC was established in the year 1956 with following main
objectives.

5. Acting as trustee of the insured public in their individual and collective capacities.
6. The vision of the Corporation is "a trans-nationally competitive financial conglomerate of
significance to societies and pride of India". The mission of the Corporation is that to explore
and enhance the quality of life of people through financial security by providing products and
services of aspired attributes with competitive return, and by rendering resources for
economic development.
The enforcement of New Economic Reforms in 1991 coupled with the formation of
Insurance Regulatory and Development Authority Act (IRDA) of 2000 (which started issuing
licenses to private life insurers) has diluted the monopoly position of the LIC. Inspite of 22
new players from the private sector, LIC continues to dominate the business with its
widespread activities. Large number of agents numbering over a million and the variety of
products introduced. At the end of August 2008, LIC accounted for about 60 per cent of total
premium underwritten by the life insurance sector. LIC has played a significant role in
spreading life insurance and mobilization of peoples money for peoples welfare. The
market share as at 30.06.2009 is 62.45% in premium and 69.88% in policies. During the
fiscal year of 2008-09 the LIC has 3.58 crores policies and sum assured of Rs.3, 90,053
crores. In the year 2008-09, LIC settled over 149 lakh claims for an amount of Rs.37, 893
crores in individual life insurance business. Out of total maturity claims settled over 97%
were settled on or before the date of maturity and over 93% of the total non early death
claims were settled within 20 days of intimation.
The organizational chart of LIC can be framed as below.
234
The LIC has been functioning with head office located at Mumbai, 8 zonal offices and 105
divisional offices in India. It has at least 2048 branches located in different cities and towns
of India along with satellite offices attached to about 807 branches, 114916 employees and
have a network of around 1.3 million agents by June 2009. LICs ECS and ATM premium
payment facility is an addition to customer convenience. With a vision of providing easy
access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The
satellite offices are smaller, leaner and closer to the customer. The digitalized records of the
offices will facilitate anywhere servicing and many other conveniences in the future. Existing
as a towering insurance company over 53 years, LIC has acquired almost monopoly power in
sale of life insurance policies in India. LIC has extended its activities in 12 countries other
than India with the objective of catering to the insurance needs of Non Resident Indians.
The LIC has subsidiary companies such as LIC Nepal, LIC Sri Lanka and Life Insurance
Corporation of India International. LIC International is a joint venture offshore company
promoted by LIC which commenced its operations in July, 1989 with the objective of
offering policies denominated in US $ to NRIs residing in the Gulf. LIC Nepal was formed in
2001 in joint venture with Vishal Group of Industries, Nepal. LIC Lanka was formed in
2003 in joint venture with Bartleet Group of Companies. Sri Lanka LIC Housing Finance
was established on 19 June, 1989 in Dubai with the objective of providing long term finance
for construction of houses or apartments. LIC Housing Finance Limited Care Homes, a
wholly owned subsidiary of LIC Housing Finance Corporation builds assisted community
living centers for senior citizens.

CENTRAL OFFICE
MUMBAI
8 ZONAL OFFICES
Bhopal, Chennai,
Hyderabad, Kanpur,
Kolkata, New Delhi,
Patna
FOREIGN OFFICES
United Kingdom, Mauritius, Fiji
105 DIVISIONAL OFFICES
2048 BRANCH OFFICES
807 SATELLITE OFFICES

TABLE: 1
CAGR (%) of LIC
Share Capital
0.00
Fixed Assets
16.64
Current Assets
09.63
Cash and Bank Balances
5.37
Current Liabilities
24.44
Net Working Capital
3.79
Policy Liabilities
17.41
Total Income
20.51
Premium Income
19.13
Income from Investments
23.24
235
Variables from Financial Statements
COMPOUND ANNUAL GROWTH RATE (%)

Other Income
(03.90)
Profit Before Tax
11.44
Insurance Benefits delivered
21.26
Commission Paid
16.34
Operating Expenses
15.09
FIGURE: 1
Share Capital
25
Fixed Assets
Current Assets
20

Current Liabilities
15
Net Working Capital

Policy Liabilities
10
Total Income
Premium Income

Other Income
Profit Before Tax

-5
CAGR (%) of LIC
Commission Paid
Operating Expenses
Table: 1 shows that the Compound Annual Growth Rates of several variables of the LIC. The
CAGR of fixed assets of LIC is 16.64%. The growth rate of current liabilities is recorded as
highest (24.44). The growth rate of Income from investments and Insurance benefits are
considered as good. And the corporations other income is showing negative growth rate.
LICs Jeevan Nischay is a single premium, guaranteed return and closed ended plan
designed for giving financial protection to the policyholders. The plan is sold only for
existing customers. The eligibility age to enter into the policy is from 18 years to 50 years.
The range of sum assured is Rs. 10,000 Rs. 10, 00,000. The policy terms are available in
terms of 5, 7 and 10 years. There will be higher maturity incentive for the policyholder who
will pay premium amount is Rs. 25,000 or more. There will be loan facility after completion
of one year. It can be surrendered after one year of commencement of the policy. Death
benefit is five times the single premium during the first policy year, after that it is equal to
sum assured. Maturity benefit is sum assured plus loyalty additions.
236
JEEVAN NISCHAY
The corporation has issued number of insurance products in order to satisfy the customer
needs and requirements. Some of these products are discussed in the following lines.

NEW BIMA GOLD

New Bima Gold is a special plan, where premiums paid over the term of plan is paid
back during the policy term in installments and life insurance cover is available not only
during the term but also during the extended term of the plan. Eligibility age to enter into
plan starts from 14 years to 57 years. The maximum maturity age is 75 years. The policy is
available in terms of 12, 16 and 20 years. The range of sum assured is Rs. 50,000 to
unlimited. The sum assured is in multiples of Rs. 5000. 15% of sum assured paid as survival
benefit for every four years. Death benefit is an amount equal to sum assured under the basic
plan on death of the life assured during the policy term provided the life cover is in force.
Payment of an amount equal to 50% of sum assured under the basic plan on death of the life
assured during the extended term provided all the premiums under the policy have been paid.
The extended term shall be half of the policy term after the expiry of the policy term. There
will be loan facility, surrender value and guaranteed surrender value. In addition accidental
death and disability benefits, optional rider benefits and paid up value are available in this
policy.
CONVERTIBLE TERM ASSURANCE POLICY
The Convertible Term Assurance Policy is designed to meet the needs of investors
who are initially unable to pay the larger premium required for a whole life or endowment
assurance policy, but they have hope to pay for such a policy in the near future. The
policyholders have an option of converting a policy into endowment assurance or limited
payment whole life assurance. The range of sum assured amount is Rs.50, 000 1, 00,
00,000. The term of the policy is 5 to 7 years. Premium can be paid yearly, half-yearly,
quarterly and monthly up to maximum of 55 years old of insured. The survival benefit is not
applicable and the sum assured is payable only in the event of death of the life assured before
the expiry of the specified term.
TWO - YEAR TEMPORARY ASSURANCE POLICY
The Endowment Assurance Policy is suitable for people of all ages and social groups
who wish to protect their families from a financial distress. It is saving oriented plan. The
main features of this policy are moderate premiums, more bonuses and high liquidity. The
eligibility age to subscribe the policy is in between of 12 - 65 years. The sum assured amount
starts from Rs. 50,000 to unlimited. The term of the policy starts from 5 years to 55 years.
The premiums are paid annually, half-yearly, quarterly and monthly. The sum assured is paid
only at the end of the policy term or death of the policyholder whichever is earlier. Loan
facility is available for the policy. The disability benefit is available in respect of the Rs.20,
000 sum assured on any ones life. Accident benefit can be availed by the insured on
payment of extra premium of Rs. 1 per Rs. 1000 sum assured per year.
237
THE ENDOWMENT ASSURANCE POLICY
The Two year Temporary Assurance Policy is designed for people who specially
require insurance cover against risk for a short period like two years. It is without profit plan.
The premium can be paid at once. There is no survival benefit, surrender value and loan
availability. The eligibility age to enter into the policy starts from 18 years to 60 years. Sum
assured amount is from Rs. 50,000 to 1, 00,000. Death benefit is total sum assured amount.

JEEVAN ANAND
Jeevan Anand is a combination of endowment and whole life plans. It provides
financial protection against death throughout the lifetime of the life assured with the
provision of payment of lump sum at the end of the selected term of his/her survival.
Premiums can be paid monthly, quarterly, half-yearly and yearly. As it is with-profits plan,
the policyholder can participate in the profits of the corporation in the form of bonus. Simple
reversionary bonuses declare per thousand sum assured annually at the end of each financial
year. Additional bonuses are also paid for certain minimum period. Survival benefit of the
plan is sum assured and vested bonuses at the end of the term. Death benefit is sum assured
amount plus all declared bonuses. Accident benefit is sum assured amount up to Rs. 5 lacs.
Extra benefits can be opted by the insured on extra premiums. The facility of surrender value
is available. The guaranteed surrender value is paid after paying 3 years or more premiums
and the value is 30% of the basic premium excluding first years premium.
WHOLE LIFE POLICY
Whole life policy is suitable for people of all ages who wish to protect their families
from financial crisis. The premium is payable lump sum called as single premium. The
premiums are paid yearly, half yearly, quarterly and monthly. The policy will be chosen in
between of 35 years and 80 years. The policy is with profit plan and the profit will be
distributed to policyholders in the form of bonus. Simple reversionary bonuses are declared
per thousand sum assured annually at the end of each financial year. Additional bonus is also
paid for certain minimum period. The sum assured plus bonuses paid in a lump sum upon the
death of the life assured. As it does not have a maturity date, an option is to take the sum
assured plus all bonuses at any time after 40 years from the date of commencement of the
policy. Optional benefits can be added to basic plan for extra protection at cost of additional
premium. Surrender value is available. On earlier termination of the plan, the guaranteed
surrender value is 30% of the basic premiums paid excluding the first years premium. The
value is 90% in case of a single premium policy.
238
Jeevan Nidhi is with - profit and deferred annuity plan. The amount of sum assured,
guaranteed additions and bonuses is used to generate a pension for the policyholder. The age
of eligibility to enter into the policy starts from 18 years to 65 years. The terms of policy are
6 - 35 years for single premium policies and 5 - 35 years for regular premium policies.
Premiums are paid yearly, half-yearly, quarterly and monthly. The minimum sum assured
amount is Rs. 50,000. Minimum annual premium is Rs. 3000 and single premium is Rs.
10,000. The annuity is paid to the life assured as long as insured alive. The annuity increases
every year at a simple interest rate of 3% per annum. The annuity is paid to the life assured
for periods of 5 or 10 or 15 or 20 years as chosen by insured. The purchase price of the
annuity is paid as death benefit. Loan facility is not available in this policy. The maximum
sum assured under the basic plan subject to a limit of Rs. 5, 00,000 taking all critical illness
riders. Rebate of 2% on yearly premium and 1% on half yearly premium can be availed by
the insured. In case of death due to any accidents the sum assured will be paid as accident
benefit. Sum assured will be paid over a period of 10 years in monthly installments. Term
assurance and critical illness rider are as optional riders. Critical illness rider will be payable
in case of diagnosis of defined categories of critical illness subject to certain terms and
conditions. The policyholder can revive his/her lapsed policy by paying arrears of premium
JEEVAN NIDHI

together with interest rate within a period of five years from the date of unpaid premium. The
interest rate is 9% charged. Grace period of 30 days will be available for payment of
premium which can be paid yearly, half- yearly or quarterly. The policyholder can return the
policy to the corporation within 15 days, if he / she is not satisfied.
JEEVAN KISHORE
The plan is an endowment assurance plan available for children who have less than 12 years
of age. The policy can be purchased by any parent or grandparent. There will be risk
coverage either after two years from the date of commencement of the policy or from the
immediate policy anniversary, following the completion of 7 years age of child whichever is
later. Premiums are paid monthly, quarterly, half-yearly and yearly. It is with-profits plan and
policyholder can get the participation in the profits of the corporation in the form of bonus.
Simple reversionary bonus paid per Rs. 1000 sum assured annually at the end of each
financial year. Final bonus may also be paid for certain minimum period. Maturity benefits
are sum assured and bonuses are paid at the end of policy term. Death benefits of sum
assured and bonuses on death of the life assured. Premium waiver benefit is available on
death of proposer. Surrender value is available and guaranteed surrendered value is after
completion of 3 or more policy years.
THE MONEY BACK POLICY
Bima Bachat is one of the money back policies. It offers financial security and assurance to
the policyholder and his/her family. Policyholder is required to pay only one premium, which
depends on the duration of the policy taken and life insurance available till the date of
maturity. Eligibility age to enter in to the policy starts from 15 years to 66 years and
maximum maturity age is 75 years. There are terms to choose among 9, 13 and 15 years.
Sum assured starts from Rs. 20,000. The policyholder will receive 15% of the sum assured at
the end of every 3rd and 6th policy year and so on. The policy is having surrender value and
loan facility. The guaranteed surrender value is available only after completion of premium
paid at least one policy year, the value is equal to 90% of the single premium paid.
239
BIMA BACHAT
The money back assurance plan that provides financial protection against death throughout
the term of plan along with the periodic payments on survival at specified durations during
the term. Survival benefits are payable only at the end of the endowment period. In the event
of death at any time within the policy term, the death claim comprises full sum assured
benefit is payable. Premiums are payable yearly, half- yearly, quarterly and monthly or
through salary deductions as opted by insured. As it is with - profit plan, policyholders get
profits in the form of bonuses. Simple reversionary bonuses will be declared per thousand
sum assured annually at the end of each financial year. Additional bonuses are also paid for
certain minimum period. Survival benefits are paid certain percentage of sum assured at the
end of the specific duration. The sum assured and bonuses are payable in a lump sum upon
the death of the life assured during the policy term irrespective of the survival benefits paid
earlier. There are optional benefits that can be added to the basic plan for extra protection for
consideration of paying additional premium. As it is long-term policy, surrender values are
available on earlier termination of the policy.

2. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED

Industrial Credit and Investment Corporation of India (ICICI) was established in 1955 with
the objective of extending financial assistance for industrial development.2 Later, it became a
group company. The ICICI Group offers a wide range of banking products and affiliates in
the areas of personal banking, investment banking, life and general insurance, venture capital
and asset management. The ICICI Group entered in the field of banking as ICICI Bank, in
the field of life insurance business as ICICI Prudential Life Insurance Company, in the field
of general insurance business as ICICI Lombard General Insurance business, in the field of
non-banking business as ICICI Securities Limited, in the field of dealer of government
securities as ICICI Securities Primary Dealership Limited, in the field of mutual funds as
ICICI Prudential Asset Management and in the field of equity organizations as ICICI
Venture.
The ICICI and Prudential Plc came together and established ICICI Prudential Life Insurance
Company Limited. Prudential Plc is a United Kingdom-based financial services company
founded on 30 May 1848 in Hatton Garden in London as the Prudential Mutual Assurance
Investment and Loan Association to provide loans for professionals and working people.4 In
1854, the company began selling the relatively new concept of industrial branch insurance
policies to the working class population for low premiums through agents who operate as
door to door salesmen. It was converted into a limited company in 1881. The company was
first listed on the London Stock Exchange in 1924.The company has over 21 million
customers worldwide. It has operations in 12 countries in Asia associate with UK. It founded
the Egg internet bank, which was sold to Citigroup in 2007.
The ICICI and Prudential have shares of 74% and 26% resepectively in ICICI Prudential Life
Insurance Company. The company started its business in December 2000. It has tied up with
ICICI bank, Bank of India, Federal Bank, Lord Krishna Bank, and some of co-operative
banks, NGOs, MFIs and other corporations. Currently, the company has 2000 branches more
than 274,500 advisors and 20 bancassurance partners all over India. The ICICI Prudential
was the first company to receive the rating of AAA from Fitch ratings.
ICICI Bank was set up in 1994 and developed as the largest private sector bank in India, and
it is the largest issuer of credit cards in India.3 It was the first bank to offer a wide network of
ATMs. The ICICI Bank is also a pioneer in providing banking products and financial
services to corporate and retail customers. The products of the bank are loans, credit cards,
savings, investment for vehicles, insurance etc. The value of total assets of the bank is $
120.61 billion as on 31march 2009. The ICICI Bank currently has subsidiaries in the United
Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong,
Sri Lanka, Qatar, Dubai, International Finance Centers, and representative offices in United
Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. And its
UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity
shares are listed on Bombay Stock Exchange and the National Stock Exchange of India
Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock
Exchange (NYSE).
<http://www.iciciprulife.com>
<http://www.icicibank.com/pfsuser/aboutus/newsroom/history/history.htm>
4
<http://en.wikipedia.org/wiki/Prudential_plc>
240

The vision of the company is to be the dominant life, health and pensions player built on
trust. Values of the company are integrity, customer oriented, boundary less, ownership, and
passion. Understanding the needs of customers and offering them superior products and
services, leveraging technology to service customers quickly, developing and implementing
superior risk management and investment strategies to offer sustainable and stable returns to
policyholders, providing an enabling environment to foster growth and learning for
employees and building transparency in all dealings are the main goals of the company.
As on 31 December 2006 it captured over 360 cities or towns in India. The company
recorded a total new business premium of Rs. 51.6 billion during fiscal year of 2007 as
compared to Rs.26.0 billion during fiscal year of 2006, thereby growth of 98.4% observed.
As per the information of 14 June 2007, among all private players, ICICI Prudential topped
by rising with its premium income of 84.5 per cent is equal to Rs 271 crore and had 9.08 per
cent of the market share. The company completed eight full years of operations, during this
period it sold over seven million policies and acquired assets of worth Rs. 28,000 crore. It
sustained its leadership position with an overall market share of 11.8 per cent. For the year
ended 31 March 2008, it wrote nearly 3 million policies and it has a network of 1,956 offices,
2,91,000 advisors, as well as 21 bank partners. The ICICI Prudential has undertaken and
offered unique programme, Pragati Ki Anokhi Paathsaala (PKAP) for the rural children of
India. PKAP aims to bring out the inherent creative skills amongst children and expose them
to the unique and thought provoking learning methods. The ICICI Prudential Life is the only
life insurance company in India providing local language sales literature and customer
support. As on 31 March 2009, the company offered customer support in ten languages
including Hindi, Punjabi, Gujarati, Telugu, Malayalam, Kannada, Tamil, Bengali and
Marathi in addition to English. ICICI Prudential Life has also partnered with e-governance
kiosks in Andhra Pradesh - aponline.com and Rajasthan - emitra.com, to enable consumers
renew their policies in their kiosks.
TABLE: 2
CAGR (%) of ICICI
Share Capital
18.9
Fixed Assets
30.25
Current Assets
41.49
38
Current Liabilities
56.1
Net Working Capital
77.69
Policy Liabilities
41.22
Total Income
86.4
241

Premium Income
69.13
155.27
Other Income
17.06
Profit Before Tax
-209.65
201.82
Commission Paid
49.3
Operating Expenses
46.77
FIGURE: 2
Share Capital
250
Fixed Assets
200
Current Assets
150
100
Current Liabilities
Net Working Capital
50
0
Policy Liabilities
Total Income
-50
Premium Income
-100
Other Income
-150
Profit Before Tax
-200
-250
Commission Paid
CAGR of fixed assets of LIC is 30.25%. The growth rate of commission paid is recorded as
highest (49.3%). The growth rate of Income from investments is considered as good. And the
corporations profit before tax is showing negative growth rate.
The company has offered different types of plans under the different categories based on the
needs of the policyholders. Some of these plans are discussed in the following lines.
ICICI PRU ELITE PENSION
ICICI Pru Elite Pension is a unique unit-linked pension policy designed for specific
customers. It enables to pay flexible premiums for a limited period and making top-ups also.
The eligibility age to enter into the policy is starts from 18 years to 74 years. The range of
Operating Expenses
242
CAGR (%) of ICICI

policy term is 6-62 years. The minimum premium is to be paid is Rs. 3,00,000 per annum.
Maximum sum assured is equal or above of Rs. 25,00,000. The term of the premium
payment is 3 years. The range of vesting age is 50 -80 years. Policyholder can chose the date
from which the pensions will be received. Among eight investment funds, policyholder can
select any funds based on their financial goals and risk profile with switching facility of four
times a year, at no cost. There is a facility of additional allocation of units at the end of every
5th policy year at the rate of 1.5% of the average of the daily fund values, if due premiums are
paid in first three policy years.
ICICI PRU PURE PROTECT
ICICI Pru Pure Protect entitles the policyholder to insure life and provide total security to
his/her family at a very affordable cost. The eligibility age to enter into policy is starts from
18 years to 65 years. The maximum maturity age is 75 years. The minimum annual premium
is Rs.2400 per annum. Premiums are paid yearly, half-yearly and monthly. The maximum
sum assured is Rs.25,00,000. The term of the policy is in between of 10 30 years. Death
benefit is sum assured amount and no maturity benefit. Additional benefits like accidental
death and disability benefit rider and waiver of premium riders are available along with tax
benefits.
ICICI PRU PINNACLE
ICICI Pru Pinnacle is a unit linked insurance policy which gives downside protection.
Policyholder can enjoy insurance protection for a longer period with limited premium
payment. The eligibility age to enter in to the policy is starts from 8 years to 65 years.
Maximum maturity age is 75 years. Maximum sum assured is 5 multiples of annual
premiums. The minimum premium is Rs. 50,000 per annum for the term of 3 years. Premium
is paid half-yearly and yearly. The term of the policy is 10 years. Death benefit is higher of
sum assured or fund value with partial withdrawal facility from 6th policy year onwards.
Maturity benefits are paid either higher of fund value or guarantee value with additional
allocations. The fund value is equal to units multiplied with net asset value.
ICICI Premium Life time Maxima is unique strategy that entitles the policyholder to gain
through his/her funds invested in the equity markets and also provides an insurance cover.
The eligibility age to enter into the policy starts from 0 to 65 years. Maximum maturity age is
75 years. The sum assured amount is five multiples of annual premiums. The policy terms
are 10,15,20,25 and 30 years. Minimum premium is Rs. 24,000 per annum. Premiums are
paid monthly, half-yearly and yearly. It provides to investors multiple investment options
which are triggers of portfolio strategy and fixed portfolio strategy. Additional allocation of
units allowed from 6th year onwards which results more than 100% allocation to fund on
premium payment. Death benefit is higher of either sum assured or fund value by allowing
partial withdrawals every 3 years starting from 6th policy year. Maturity benefits are paid as
fund value and based on chosen options.
SAVE N PROTECT
ICICI PRU LIFE TIME MAXIMA
243
Save n Protect policy is suitable for long term investors to meet long term objectives. The
minimum sum assured amount is Rs. 50,000. The term of the policy starts from 10 to 20

years. Investor can enter into the policy from 0 to 60 years. The maximum maturity age is 70
years. The minimum premium is Rs. 6,000 per annum. The premiums are paid annually, half
yearly, and monthly. Death benefits as well as maturity benefits are sum assured and
guaranteed bonus. Insured can enjoy 5 years extended life coverage period at 50% of the sum
assured after the maturity of the policy.
CASH BAK
Cash Bak insurance plan is a fixed term insurance plan, which provides money at regular
intervals to keep the policyholders financially sound. The eligibility age to enter into the
policy starts from 16 years to 55 years. The minimum sum assured starts from Rs.75,000.
Guaranteed additions are received as additional sums at the rate of 3.5% compounded
annually on the sum assured for the first four years. Maturity benefit is 50% of sum assured
and guaranteed additions. On the death of the policyholder, the nominee will be entitled to
receive sum assured along with guaranteed addition for the first four years along with bonus.
SMART KID REGULAR PREMIUM PLAN
Smart Kid Insurance plan is a fixed term insurance plan that provides funds at regular
intervals. It is an exclusively education insurance plan which is offered by the company in 3
choices of Smart Kid New Unit Linked Regular Premium, Smart Kid New Unit Linked
Single Premium and Smart Kid Regular Premium. Basically it is unit linked plan and enable
the insured and insureds child to accumulate wealth by virtue of the performance of the
underlying market linked instrument. The minimum premium is Rs. 10,000 per annum which
will be invested in the selected funds. The minimum sum assured is 5 times of annual
premium. The term of the policy will be calculated as the difference between childs current
age and the age of the child when the policy matures. In this policy Smart Kid Unit Linked
Single Premium is another choice. For which the premium is paid Rs. 50,000 onwards.
Another option is Smart Kid Regular Premium which has guaranteed bonus option. The
bonus is 3.5% per annum for the first 4 premium paying years and an annual vested bonus in
subsequent years. The regular payouts are paid for the education of a child. Income benefit
rider is another option to make attractive the policy. Accidental death disability rider and
waiver of premium riders ensure the child stays double protected at all times. The premium
will be calculated based on 3 factors such as sum assured, policy tenure and age of the
policyholder.
244
Life Time Gold is a regular premium unit - linked policy that offers potentially higher returns
through the multiplier that invests in the top 50 large cap companies. It offers protective
benefits of an assurance cover and financial security for insureds family. Insured can invest
for a minimum of 10 years and a maximum of 75 years. There are 7 investment funds are
available, among the funds, policyholder can select any funds of Flexi Growth, R.I.C.H.,
Multiplier, Flexi balanced, Balancer, Protector and Preserver based on his/her financial goals
and risk profile. The eligibility age to enter in to the policy is in between of 0-65 years. The
maximum age of maturity of the policy is 75 years. Minimum premium is Rs. 20,000/- per
annum. The minimum sum assured amount is 5 times of annual premium, subject to
minimum of Rs. 1,00,000. Systematic withdrawal facility is available in installments from 4th
year onwards. Maturity benefit is fund value. Death benefit is higher of either fund value or
LIFE TIME GOLD

sum assured. Switching is possible between funds any time to adjust a portfolio based on
insureds financial goals and risk profiles. Switching of 4 times a year is allowed at no cost.
3. BAJAJA ALLIANZ LIFE INSURANCE COMPANY LIMITED
The Bajaj Group is one of the biggest two and three wheeler manufacturers in the world. 5
Bajaj Allianz Life Insurance Company Limited was incorporated by both the Bajaj Group
and the Allianz SE., which is a Germany based company and one of the largest asset
managers in the world. Allianz SE has over 115 years of financial experience over 70
countries. It is a leading insurance conglomerate and one of the largest asset managers in the
world. The objective of Allianz life Insurance company is to become loyalty leader in all
chosen markets and further strengthen its sales channels with a special focus on recruiting,
training and developing agents. It has been managing assets worth over Rs. 55,00,000 crore.
Allianz SE has its head office in Munich. Allianz Group provides more than 60 million
customers worldwide with a comprehensive range of services in the areas of property and
casualty insurance, life and health insurance, asset management and banking.
Bajaj Allianz Life Insurance is in the fields of both life insurance and general insurance.
Currently, it has presence in more than 550 locations with over 60,000 insurance consultants.
Bajaj Allianz Life Insurance Company is a large private sector life insurance company in
terms of number of policies. It has taken the lead amongst private sector life insurance
companies in proving its superior management & marketing skills. It has a strong retail focus
to become the most profitable private life insurance company. The company announced
healthy profits of Rs. 63 crore for the financial year 2006-07. In June 2008, Bajaj Allianz
entered into partnership with Thomas Cook India to provide travel finance. Bajaj Allianz Life
Insurance ensures excellent insurance and investment solutions by offering customized
products, supported by the best technology.
TABLE: 3
CAGR (%) of Bajaj Allianz
Share Capital
0.16
Fixed Assets
32.91
Current Assets
50.54
47.02
Current Liabilities
69.96
Net Working Capital
-313.07
<http://www.allianzbajaj.co.in>
245

Policy Liabilities
92.52
Total Income
126.08
Premium Income
107.41
251.82
Other Income
8.05
Profit Before Tax
-254.46
256.41
Commission Paid
86.17
Operating Expenses
68.09
FIGURE: 3
Share Capital
300
Fixed Assets
Current Assets
200

Current Liabilities
100
Net Working Capital

0
Policy Liabilities
Total Income
-100
Premium Income
-200
-300
Other Income
Profit Before Tax
Commission Paid
Operating Expenses
CAGR of income form investments of LIC is 251.82% which is good. The growth rate of
insurance benefits delivered is also good (256.41%). The growth rates of total income and
premium income are considered as not bad. And the corporations profit before tax and net
working capital are showing negative growth rate.
The company has been offering various types of policies under various categories. Some of
these plans are discussed as under.
CAGR (%) of Bajaj Allianz
246
-400

NEW RISK CARE

New Risk Care is a term assurance plan with regular or single premium payment options to
secure life at lowest possible cost. Life insurance cover is available at lowest possible price.
The policy is non-participating and traditional term assurance plan with additional rider
benefits. Premiums are paid annually, halfyearly, quarterly and monthly with regular
intervals. Maximum age of maturity is 65 years. A lapsed policy can be revived within 2
years from first unpaid premium by paying all due regular premiums along with interest.
Surrender value is not available and there is no conversion facility. Accidental death benefit,
accidental permanent total or partial disability Benefit, critical illness benefit and hospital
cash benefit are attractive features of the plan.
INVEST GAIN
Invest Gain is specially designed with unique combination of benefits that help insured to
develop a sound financial portfolio for his/her family. The plan gives 4 times of life cover at
a little extra cost. There is limited payment option is available. Accidental death benefit,
disability benefit, critical illness benefit, hospital benefit and family income benefit are
additional benefits offered by the company on additional premiums. In case of death or
accidental or total permanent disability of insured, all future premiums are waived and 1% of
the sum assured is paid monthly, Maturity benefit is in the form sum assured along with
accrued bonuses.
LIFE TIME CARE ECONOMY
Life Time Care Economy is a whole life endowment plan with profits. The sum assured and
the bonus is payable only to the beneficiary upon the death of the policyholder. A terminal
bonus may be paid on death or survival after age of 80 years. Premiums should be paid for at
least 15 years. Accidental permanent, total or partial disability benefit and waiver of
premium benefit will be paid at each policy anniversary. The benefits include accidental
death cover, disability cover, critical illness cover hospital cash cover and waiver of premium
benefits. Premiums are paid yearly, half yearly, quarterly and monthly. Housing loans and
general loans are available. A full sum assured and bonus are generally payable as maturity
benefits. The survival benefits are not applicable. Full sum assured and bonuses are paid as
death benefits. And also accidental and death benefits are additional benefits.
247
Future Income Generator facilitates the investor to save money which will become wealth in
future. The plan is an alternative to superannuation and provident funds. The flexible
retirement plan helps to policyholder to maintain their lifestyle and create a monthly income
that will last him/her all the means to enjoy it. It is a smart saving plan. Financial
independence from work is necessary to everybody, so the policyholder need not to worry of
income after their retirement. It is a specialized retirement solution for housewives, so that,
they become financially independent. Open market option is allowed to purchase an
immediate annuity from the company or any other life insurers recognized by IRDA.
FUTURE INCOME GENERATOR

SWARNA VISHRANTI
Swarna Vishranti is a plan, which enables the policyholder to spend life in retirement stage
with happiness. There is an option to take a tax-free on lump sum up to 33% of sum assured
cum accrued bonuses. Accidental death benefit and disability benefit, critical illness benefit
and hospital cash benefit are additional benefits available in this policy. All future premiums
are waived and 1% of sum assured is paid monthly in case of death or accidental total
permanent, disability of the insured. The additional life insurance protection is available at a
nominal cost. Open market option is allowed to purchase an immediate annuity from the
company or any other life insurers recognized by IRDA.
UNIT GAIN PLUS GOLD
Unit Gain Plus Gold is a combination of protection and earning attractive returns by
investing in various combinations of securities. High allocations of profits and guaranteed
life cover can be possible. The plan has choice of seven investment funds. Additional
benefits like accidental death benefit, critical illness benefit, hospital cash benefit, family
income benefit and waiver of premium benefit made attractive this policy.
4. BIRLA SUNLIFE INSURANCE COMPANY LIMITED
Birla Sunlife Insurance Company Limited (BSLI) is a joint venture between Sunlife
Assurance Company of Canada and Aditya Birla Management Corporation limited with
shareholdings of 26 percent and 74 percent respectively.6
The head office of Birla Sunlife is located at Mumbai. It started operations in March 2001
after receiving its registration license from IRDA in January 2001. Within four years of
launch, the BSLI has cemented its position as a leading player in the private life insurance
industry. The core strategy of the company is to create value for all its stakeholders. It
6
<http://www.birlasunlife.com>
248
Sun Life Financial Inc. is a leading international financial services organization providing a
diverse range of wealth accumulation and protection products and services to individuals and
corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today
have operations in key markets worldwide, including Canada, the United States, the United
Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of
31 March 2008, the Sun Life Financial group of companies had total assets of $ 404.7 billion.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine
(PSE) stock exchanges under ticker symbol "SLF".
The Aditya Birla Group, a US ($28 billion) conglomerate, is one among the largest business
houses in India. It enjoys a leadership position in all the sectors in which it operates. It is
anchored by a force of 100,000 employees, belonging to 25 nationalities. Its operations are
spanned 25 countries across six continents and it is reckoned as India's first multinational
corporation. It is headquartered at Mumbai, over 60 per cent of the group's revenue flows
from the overseas operations. The Group nurtures a work culture where success is built on
learning and innovation. The Group has been adjudged "The Best Employer in India and
among the top 20 in Asia" by the Hewitt, Economic Times and Wall Street Journal Study
2007.

launched innovative unit-linked insurance products. It aims at being a leader in product

innovations to cater specific customer needs. It has direct sales force of more than 60000
high quality licensed insurance advisors in major cities and towns in India. The BSLI was
ranked 18th among the "TOP 25" in the "Great Places to Work - 2006 Survey".
The vision of the Birla Sun Life Insurance Company Limited is to create long term value
along with market leadership and mission of the company is to help people mitigate risks of
life, accident, health and money at all stages and under all circumstances. Birla Sun Life
Insurance has some values of passion, integrity, speed, commitment and seamlessness. With
an experience of over 9 years, BSLI has contributed significantly to the growth and
development of the life insurance industry in India. It was the first Indian Insurance
Company to introduce Free Look Period, which was made as mandatory by IRDA for all
other life insurance companies. The BSLI is a pioneer player in introducing Unit Linked Life
Insurance plans amongst the private players in India. The BSLI provides insurance, mutual
fund, investment and wealth management services. It was the first company which sold its
policies through the bancassurance and the internet as well as the first private sector player to
introduce pure Term Plans in the Indian market.
TABLE: 4
CAGR (%) of Birla Sunlife
Share Capital
40.75
Fixed Assets
14.31
Current Assets
54.21
59.47
Current Liabilities
51.83
Net Working Capital
43.72
Policy Liabilities
80.96
Total Income
73.37
Premium Income
68.31
179.16
Other Income
30.61
Profit Before Tax
32.43
72.52
249

Commission Paid
50.5
Operating Expenses
47.09
FIGURE: 4
Share Capital
180
Fixed Assets
160
Current Assets
140
120
Current Liabilities
Net Working Capital
100
Policy Liabilities
Total Income
80
Premium Income
60
40
Other Income
Profit Before Tax
20

Commission Paid
0
CAGR (%) of Birla Sunlife
Operating Expenses
CAGR of income from investments of LIC is 179.16%. The growth rate of insurance benefits
delivered is recorded as good (72.52%). The growth rates of current assets cash and bank
balances and networking capital are also considered as good.
The BSLI offers several types of life insurance products, some of them discussed in the
following lines
250
BSLI Term Plan is designed for people who want to avail of the benefit of life insurance at
low cost. It is a low premium, pure risk coverage plan which takes care of investors financial
commitment towards their family or dependants if any risk occurred. The entry age starts
from 18 years to 55 years. The minimum sum assured is Rs.2,50,000 in case of single
premium and Rs.2,00,000 in case of regular premium. The terms of the benefits paid are
5,10,15,20 or 25 years. Frequency of premium payment is annually, semi-annually, quarterly,
monthly and also single time payment. There will be grace period of 30 days after the
premium due date. There is no maturity benefit. Accidental death and dismemberment rider,
critical illness rider and waiver of premium riders, accompanied with this plan whenever the
policyholder choose at the time of purchase.
BSLI TERM PLAN

BSLI PREMIUM BACK TERM PLAN

BSLI Premium Back Term Plan is unique term plan that offers an assurance throughout the
specified term and low cost plan. In this plan the entire amount of premium paid over period
of time. The total premiums paid back over the term on maturity. Minimum sum assured is
Rs.2,00,000. The terms of the policy are 10, 15 and 20years. The eligibility age to enter in to
the policy starts from 18 to 50 years for the 20 years term plan and from 18 to 55 years for 10
and 15 years term plan. Maximum maturity age is 70 years. The surrender value is available
but it varies with the premium term as well as the policy year in which the plan is
surrendered. Frequency of premiums paid is annually semi-annually. Premium shall be paid
throughout the benefit period. Investors can choose from eight investment fund options to
match their risk and return profile. Switching facility is also available premium allocation
percentage into the various investment fund options during the tenure of the policy. The
funds are Assure, protector, Builder, enhancer, creator, Magnifier, Maximizer and Multiplier.
Death benefit paid is equal to coverage or face amount plus payback amount. Maturity
benefit is paid by paying total premiums incase of 100% pay back or more than premiums
incase 125% pay back. Accidental death and dismemberment, critical illness and waiver of
premium are riders are available to choose.
FLEXI SECURE LIFE RETIREMENT PLAN - II

Flexi Secure Life II plan is unit linked non - participating retirement plan which helps to the
people who save a little amount every day. It has two options of single premium plan and
regular premium plan. It offers benefits to meet insureds specific retirement planning needs.
251
Flexi Save Plus is one of the endowment plans. It is designed for the insured and his/her
family. The plan not only offers the advantages of unit-linked plan and provides the insured
an opportunity to make large tax free saving over a period of time. The eligibility age to
enter in to the policy starts from 30 days to 60 years. Maximum maturity age is 70 years.
Sum assured starts from Rs.2,00,000/- for 70 years old insured, and Rs.1,00,000/- for the rest.
Premiums are paid either single time or yearly, half yearly, quarterly and monthly. Range of
duration of the policy is 10, 15, 20, 25 or 30 years. Minimum duration of the policy is 6 years
for minors and 10 years for all others. And maximum duration is 35 years for minors, 52
years for majors and 30 years for the rest. Policyholders can increase their premiums by
paying top-up if he/she has additional savings. The minimum amount of top up is Rs. 5000
and maximum amount of top up is Rs.50,000 or an annual premium, whichever is higher.
Insured can choose any investment fund among three investment funds namely Protector,
Builder and Enhancer. There is a freedom of switching among the funds. A partial
withdrawal from fund value is offered at any time after three years premiums are received by
insured. Two partial withdrawals are free of cost in a year. The policy can be surrendered
without penalty at any time after four policy years. Guaranteed returns of 3% per annum
applies on premiums and top up premiums. The maturity benefit is higher of either fund
value or guaranteed fund value. Death benefit is higher of either fund value or guaranteed
fund or sum assured less applicable withdrawals. 100% coverage is there in case of death
due to accident. The surrender facility is there any time during the tenure of the policy. The
surrender charge will be zero after the four policy years. Accidental death and
dismemberment riders are available. 15 days of time will be given as free look period, with in
which insured return the policy, if he/she is not satisfied with the policy.
FLEXI SAVE PLUS

The eligibility age to enter the policy starts from 18 to 65 years. Insured can choose the
retirement plan till the vesting age. The minimum sum assured is Rs.55,000 under the single
premium plan and Rs.50,000 under the regular premium plan. Insured pays Rs.5,000 as
regular premium. In both options he/she can top up their fund with additional savings. The
minimum amount of such top up is Rs.10,000. The policyholder can choose any one of the
funds among Nourish, Growth and Enrich. He/she may allocate premium in varying
proportions amongst available investment fund options to diversify risk. Switching facility is
available between the investment fund options. In a year two such types of switches are free
of cost. There is an option to purchase an annuity that will provide income throughout life.
CHILDRENS DREAM PLAN
Childrens Dream Plan helps is a long-term unit - linked insurance plan that is specifically
designed to provide financial security to the policyholders child when he/she becomes an
adult. It helps to insured to give the financial freedom to his/her children to achieve their
dreams. It combines a guaranteed return on savings with upside potential based on the
performance of the investment funds. However, the minimum amount will be given with
guaranteed benefit at the maturity. The immediate sum assured will be paid to the child even
in absence of the insured, unfortunately. The eligibility age to enter into the policy starts
from 18 to 60 years. The child must have 13 years old to enter into the policy. The term of
maturity ends at 75 years old. The minimum sum assured should be Rs.50,000. Premiums are
paid yearly, half-yearly, quarterly and monthly. The policyholder may select any one among
the three investment funds of Protector, Builder and Enhancer.
The insured can add up riders to the base plan at a marginal extra cost. Accidental death and
dismemberment benefit rider provides 100% of coverage in case of death due to accident,
loss of more than one limb or sight in both the eyes, 50% coverage in case of loss of one limb
or sight in one eye. Term rider provides additional amount of cover in the event of death of
the life insured. Critical illness rider provides coverage in the event of life insured being
diagnosed as suffering from any of four illnesses specified. Critical illness plus rider provides
252
Flexi Life Line Plan is unit - linked, non - participating plan which gives efficient earnings in
the long term. The age of eligibility to enter in to the policy starts from 30 to 65 years. The
minimum sum assured amount is Rs.5,00,000 for 10 year period to all ages. It is Rs.3,00,000
for minors and Rs.2,00,000 for majors. The maximum maturity age is 70 years for minors
and100 years for majors. The premium paying terms are 10, 15, 20 and 25 years. The
frequency of premium payment is annually, semi annually, quarterly and monthly. There is a
top up facility whenever insured has additional savings during the tenure of the policy. The
range of top ups is Rs.5,000 - Rs.50,000. A minimum guaranteed return of 3% per annum
applies on premiums. Maturity benefit is higher of either the fund value or the guaranteed
fund value. The death benefit is higher of either the fund value or guaranteed fund or sum
assured less all applicable partial withdrawals in the 24 months preceding the death of the life
insured. Partial withdrawals are allowed after three policy years or on attaining the age of 18
years whichever is later. Two partial withdrawals are free of charge. The policy can be
surrendered at any time during the tenure of the policy. The surrender charges will be zero
after the 4th policy year. Insured has the right to return the policy to the company within 15
days from the date of receipt of the policy. The Policyholder may select any one among the
three funds available of Protector, Builder and Enhancer.
FLEXI LIFE LINE PLAN

a coverage in the event of life insured being diagnosed as suffering from any of specified
illnesses. Critical illness woman rider provides coverage against several critical illnesses
including woman specific illnesses like pregnancy complications and congenital anomalies.
A premium waiver rider waives payment of future premiums on the happening of any of the
unforeseen events.
5. ING VYSYA LIFE INSURANCE COMPANY PRIVATE LIMITED
ING group originated in 1990 by the merger of Nationale Nederlanden, NV the largest Dutch
Insurance Company and NMB Post Bank Groep NV. The newly formed company has been
called the Internationale Nederlanden Group, market circles have abbreviated the name to
I-N-G. ING Group is a world-class financial conglomerate of Dutch origin offering banking,
insurance and asset management. It comprises a broad spectrum of prominent companies that
serve their clients in over 40 countries under the ING brand. One such company is the ING
Vysya Insurance Company Private Limited, established in September 2001. The equity
partners of the company are ING Insurance International B.V (26%), Exide Industries (50%)
and other shareholders (24%).
The ING Vysya Insurance with its head quarters at Bangalore is present in 229 cities
across 251 branch offices. It distributes its products in several parts of the country through its
partners presence. It has issued over 1 million policies by the end of December 2010.It
distributes its products through two channels, the Tied Agency Force and the Alternate
Channel. The Tied Agent force comprises over 50,000 ING Life Advisors, spread across the
country. The Alternate Channels business within ING Life India is a fast growing distribution
channel, and includes the Bancassurance partner (ING Vysya Bank), referral Partners,
Corporate Agents and Brokers.
TABLE: 5
CAGR(%) of ING Vysya Life
Share Capital
29.22
Fixed Assets
-0.46
Current Assets
33.82
26.82
Current Liabilities
44.34
Net Working Capital
-227.11
Policy Liabilities
106.24
Total Income
100.68
253

Premium Income
86.21
212.59
Other Income
18.63
Profit Before Tax
20.14
161.95
Commission Paid
51.97
Operating Expenses
34.81
FIGURE: 5
250
Share Capital
200
Fixed Assets
Current Assets
150
100
Current Liabilities
Net Working Capital
50
Policy Liabilities
Total Income
Premium Income
-50
-100
Other Income
-150
Profit Before Tax
-200

Commission Paid
Operating Expenses
CAGR of income from investments of LIC is 212.59% which is highest. The growth rate of
insurance benefits delivered is recorded as good (161.95%). The growth rates of total income
and premium income are considered as average. And the corporations net working capital is
showing negative growth rate.
Given here is a comprehensive list of various insurance policies & saving plans offered by
ING Vysya Life Insurance Company Private Limited.
CAGR(%) of ING Vysya Life
254
-250

ING TERM LIFE PLUS

ING Term Life Plus is a term insurance product with return of premiums. There is a
flexibility of surrender the policy. The eligibility age to enter into the policy starts from 18 to
65 years. Maximum maturity age is 75 years. Sum assured starts from Rs. 5 Lakhs. The term
of the policy is in between of 10 to 30 years. Three terms are available such as regular,
limited and single premium plans. Premiums are paid annually, half- yearly quarterly or
monthly. Death benefit is sum assured amount. After completion of half of the policy term,
company may return a proportion of the premium that insured has paid. There is flexible
surrender value after completion of three regular premium payments.
ING NEW BEST YEARS
ING New Best Years is a retirement plan gives capital guarantee and provides safety to
retirement corpus. In the policy, the policyholder can choose pension payout commencement
option, top-up feature and frequency of premium payments. The eligibility age to enter into
the policy starts from 20 years to 65 years. The range of vesting age is 45-70 years.
Minimum premium amount is Rs. 12,000 and top-up contribution is Rs. 20,000.
ING FLEXI LIFE PLUS
ING Flexi Life Plus is a unit linked life insurance policy that gives dual benefit of insurance
coverage and investment opportunity.7 It provides flexibility in premium payments either to
increase or decrease of regular premiums. The eligibility age to enter into the policy starts
from 0 to 60 years. The range of maturity age is 18-70 years. The policy term is available in
terms of 10 years and 20 years. Premiums are paid annually, half-yearly, quarterly and
monthly. The minimum sum assured is 6.25 times the annualized regular premium.
Maximum sum assured amount is 25 times of annualized regular premium. And the
minimum top-up amount is Rs. 2000. The accumulate amount of fund will be given as
maturity benefit and allowed partial withdrawals. The plan provides an Enhance Accidental
Protection Benefit, which is an additional benefit on death due to accident.
CREATING STAR
Creating Star plan gives an opportunity to fulfill the childrens needs. It offers to
policyholder a systematic and hassle-free way to pre-fund his/her childs education program
7
<http://www.inglife.co.in/productcenter/productcenter-saving-primelife.shtml>
255
Safal Jeevan Endowment Plan offers comprehensive protection and savings in an easy
manner. As title is Safal Jeevan, the policy is a simple life insurance plan gives complete
freedom to choose from pre-packaged solutions and decide the time period of premium
payment. The eligibility age to enter in to the policy starts from 18 to 45 years. Maximum
maturity age is 60 years. Premium payment terms are chosen among 10, 15 and 20 years.
Premiums are paid yearly, half yearly, quarterly and monthly. Minimum premium starts
from Rs. 2000 per annum. The plan offers death benefit, maturity benefit and in built
accident cover. Low premiums, availability of in built accident coverage are major benefits
of the scheme.
SAFAL JEEVAN ENDOWMENT PLAN

by paying premiums regularly and securing the childs education. The eligibility age to enter
into the policy starts from 0 to 15 years for life assured and 18 to 50 years for the
policyholder. The range of maturity age of life assured is 21 -25 years. Premiums are starts
from Rs. 48,000/- if it is single premium, Rs.20,000/- if it is limited premiums and
Rs.12,000/- if it is regular premium. The premiums are paid yearly, half-yearly, quarterly and
monthly. Waiving of premiums in the unfortunate event of parents death, Education payouts
in the last three years of the policy, systematic investment options and partial withdrawal
benefits are key benefits of the plan.
PRIME LIFE
Prime Life is a unique plan with an option of systematic withdrawals, which allows insured
to with draw money, when he/she requires it rather than borrow from some others. The plan
is unit linked plan that gives insured the unique advantage of savings as well as reaping
returns on investment when more than 100% of the initial allocation charges are returned. In
the policy, Sum assured increases by 5% every year. The eligibility age to enter in to the
policy starts from 10 to 45 years. The range of maturity age is 25 - 65 years. Yearly Premium
starts from Rs.12,000 to Rs.60,000. Insured can increase the premiums with the help of topups when he/she has additional savings. Minimum top up value is Rs.2000/-. The policy
terms are available in 15 year and 20 years. Policy term is equal to premium paying term.
Premiums are paid yearly, half yearly, quarterly and monthly. Sum assured is fixed which is
5 times of the annualized premium. Sum assured increases every year, option to extend the
policy term by 10 years and in built additional accident coverage are key benefit of the
policy.
HIGH LIFE PLUS
256
High Life Plus is a unit linked insurance plan. It is superlative investment plan that gives
insured the opportunity to build his/her wealth through regular systematic investments and
additional top ups as per convenience. The plan not only provides protection cover of
investors choice, but also enhances his/her investment opportunities to earn returns with the
market. The eligibility age to enter in to the policy starts from 0 to 70 years. Maximum
maturity age is 75 years. The terms of premium payment are 3 years to 25 years. Premiums
are paid annually, half- yearly, quarterly and monthly. Life coverage is based on choice of
investor. Death benefit includes sum assured or fund value and flexible payouts of maturity
benefit.

TABLE: 6
CAGR
(%)
of
LIC
CAGR (%)
of ICICI
CAGR (%)
of
Bajaj
Allianz
CAGR (%)
of
Birla
Sunlife
CAGR(%)
of
ING
Vysya Life
Share Capital
18.9
0.16
40.75
29.22
Fixed Assets
16.64
30.25
32.91
14.31
-0.46
Current Assets
9.63
41.49
50.54
54.21
33.82
Cash and Bank

Balances
5.37
38
47.02
59.47
26.82
Current
Liabilities
24.44
56.1
69.96
51.83
44.34
Net
Working
Capital
3.79
77.69
-313.07
43.72
-227.11
Policy Liabilities
17.41
41.22
92.52
80.96
106.24
Total Income
20.51
86.4
126.08
73.37
100.68
Premium Income
19.13
69.13
107.41
68.31
86.21
Income
from
Investments
23.24
155.27
251.82
179.16
212.59
Other Income
-3.9
17.06
8.05
30.61
18.63
Profit Before Tax
11.44
-209.65
-254.46
32.43
20.14
Insurance
Benefits
delivered
21.26
201.82
256.41
72.52
161.95
Commission
Paid
16.34
49.3
86.17
50.5
51.97
Operating
Expenses
15.09
46.77
68.09
47.09
34.81
257
Variables from
financial
Statements

FIGURE: 6
300
200
100
C
ur Ca
p
r
C e nt ital
ur
re As
nt se
t
P Lia s
ol
bi
ic
lit
y
ie
L
s
P
re ia b
m
i
In
iu litie
su
m
s
ra
I
nc
O n co
th
e
e m
B
en r I e
n
O efit co
m
pe
s
ra de e
t in liv
e
g
E red
xp
en
se
s
ha
re
-100
-200
-300
CAGR (%) of LIC

CAGR (%) of ICICI
CAGR (%) of Bajaj
Allianz
CAGR (%) of Birla
Sunlife
CAGR(%) of ING
Vysya Life
-400
Table 6 shows that the combined financial performance of five life insurance companies in
terms of compound annual growth rates of the variables.
CONCLUSION
258
LIC is a public sector life insurance Company, which is taken as one of the sample
companies. Although it is big public sector company, in the past a decade period it is lagging
behind in some of the financial aspects. The reason is the company has been facing the tough
competetion from private sector life insurance companies. The market share of LIC has
decreased gradually. The financial performance of other private life insurance companies is
also good in some aspects.

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20 Zijbemr March12 Vol2 Issue3

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ZENITH International Journal of Business Economics & Management Research

Vol.2 Issue 3, March 2012, ISSN 2249 8826

FINANCIAL PERFORMANCE OF LIFE INSURANCE COMPANIES

ZENITH International Journal of Business Economics & Management Research

The organizational chart of LIC can be framed as below.

ZENITH International Journal of Business Economics & Management Research

105 DIVISIONAL OFFICES

2048 BRANCH OFFICES

807 SATELLITE OFFICES

CAGR (%) of LIC

Cash and Bank Balances

Net Working Capital

Income from Investments

Variables from Financial Statements

COMPOUND ANNUAL GROWTH RATE (%)

ZENITH International Journal of Business Economics & Management Research

Profit Before Tax

Insurance Benefits delivered

Cash and Bank Balances

Net Working Capital

Income from Investments

Profit Before Tax

ZENITH International Journal of Business Economics & Management Research

NEW BIMA GOLD

THE ENDOWMENT ASSURANCE POLICY

ZENITH International Journal of Business Economics & Management Research

ZENITH International Journal of Business Economics & Management Research

ZENITH International Journal of Business Economics & Management Research

2. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED

ZENITH International Journal of Business Economics & Management Research

CAGR (%) of ICICI

Cash and Bank Balances

Net Working Capital

Variables from Financial Statements

COMPOUND ANNUAL GROWTH RATE (%)

ZENITH International Journal of Business Economics & Management Research

Income from Investments

Profit Before Tax

Insurance Benefits delivered

Cash and Bank Balances

Profit Before Tax

Insurance Benefits delivered

CAGR (%) of ICICI

ZENITH International Journal of Business Economics & Management Research

ICICI PRU LIFE TIME MAXIMA

ZENITH International Journal of Business Economics & Management Research

LIFE TIME GOLD

ZENITH International Journal of Business Economics & Management Research

Variables from Financial Statements

CAGR (%) of Bajaj Allianz

Cash and Bank Balances

Net Working Capital

COMPOUND ANNUAL GROWTH RATE (%)

ZENITH International Journal of Business Economics & Management Research

Income from Investments

Profit Before Tax

Insurance Benefits delivered

Cash and Bank Balances

Net Working Capital

Income from Investments

CAGR (%) of Bajaj Allianz

ZENITH International Journal of Business Economics & Management Research

NEW RISK CARE

FUTURE INCOME GENERATOR