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TABLE OF CONTENTS

Chapter 1: Introduction

1.1 Overview of the Industry


1.2 Profile of the Organization
1.3 Problems of the Organization
1.4 S.W.O.T. Analysis of the Organization
1.5 Competition Information

Chapter 2: Objective & Methodology

2.1 Significance of the study


2.2 Managerial usefulness of the study
2.3 Objectives of the study
2.4 Scope of the Study
2.5 Methodology

Chapter 3: Conceptual Discussion

Chapter 4: Data Analysis

Chapter 5: Findings & Recommendations

Annexure

Bibliography
Chapter – 1
INTRODUCTION

1.1 OVERVIEW OF THE INDUSTRY

Origin of life insurance

Life Assurance was born in England when the first policy providing
temporary cover for a period of 12 months was issued as easy as 1583 A.D.
The Amicable Society started granting fluctuating sum on death since 1705
and a fix sum since 1757, with the development of mortality tables, the life
Assurance acquired a scientific character.
The Equitable Society founded in 1762 was the first Society established on
scientific basis.

Origin of life assurance in India

In India, after failure of two British companies, the European and the Albert
in 1870, which attempted writing business on Indian lives, first Indian Life
Assurance Society was formed in the same year called Bombay Mutual
Assurance Society Ltd. It was followed by the Oriental Life Assurance
Company Limited in 1874, Bharat in 1896 and Empire of India in 1897. The
Idea of insurance was born out of a desire of the people to share loss of an
individual by many.

Originally it restricted to forms other than life assurance. It started with


Marine Insurance, where the losses on account of perils of sea were shared
by all who were engaged in trade. Reference to some forms of insurance, is
found in the codes of Hammurabi, Manu (Manav Dharma Shastra). The
word `Yogakshema’ is used in the Rig Veda suggesting that some form of
community insurance was practiced by the Aryans in India over 3000 years
ago. In India during Buddhist period burial societies existed which were
mutual in their character and used to help a family by building a house,
protecting the widow, marrying the girls.

The Swadeshi Movement of 1905 provided impetus to the formation of


several companies such as the `Hindustan Cooperative’, the `United India’,
the `Bombay Life’, the `National’. Further in the wake of freedom movement
number of companies such as the `New India’, the `Jupiter’ the `Lakshmi’
emerged.

The Government began to exercise a certain measure of control on Insurance


business by passing the `Insurance Act’ in 1912. For controlling investment
of funds, expenditure and management, a comprehensive Act was passed
known as `The Insurance Act 1938’. For controlling the affairs, the office of
Controller of Insurance was established. The act was extensively amended in
1950.

In the year 1955, approximately 170 Insurance Offices and 80 Provident


Fund Societies had been registered for transacting Life Assurance business in
India. There were, however, no full guarantees to the policyholders. The
concept of trusteeship was lacking. Many insurance companies went into
liquidation. There were malpractices in insurance business. For achieving the
following purposes it was felt necessary to nationalize the insurance business
in India.

(i) To provide security to the policyholders.


(ii) To utilize the funds for nation-building activities.
(iii) To avoid cut throat competition.
(iv) To abolish mal-practices.
(v) To spread the insurance message to the rural areas.
The first step in this direction was taken by the Government of India by
issuing the Life Insurance (the Emergency provisions) Ordinance, 1956 on
19th January, 1956. The then Finance Minister, Shri C. D. Deshmukh
mentioned the purpose of nationalisation as reaching the goal of socialistic
pattern of society, rendering genuine service to the

people in the rural area. The Life Insurance Corporation Act (Act XXXI of
1956) was passed by the Parliament in June 1956 which came in force on 1st
July 1956. The Life Insurance Corporation of India came into existence on
1st September 1956.

Insurance Sector Reforms


Having looked at the insurance sector, let us look at the efforts made by the
government to make the industry more dynamic and customer friendly. To
begin with, the Malhotra committee was set up with the objective of
suggesting changes that would achieve the much required dynamism.

The Malhotra Committee Report

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI


Governor R. N. Malhotra, was formed to evaluate the Indian insurance
industry and recommend its future direction. In 1994, the committee
submitted the report and gave the following recommendations:

Structure:

♦Government stake in the insurance Companies to be brought down to 50%.

♦Government should take over the holdings of GIC and its subsidiaries so
that these subsidiaries can act as independent-corporations.

♦All the insurance companies should be given greater freedom to operate.


Market Regulations

♦Private Companies with a minimum paid up capital of Rs.1bn should be


allowed to enter the industry.

♦No Company should deal in both Life and General Insurance through a
single entity.

♦Foreign companies may be allowed to enter the industry in collaboration


with the domestic companies.

♦Postal Life Insurance should be allowed to operate in the rural market.

♦Only one State Level Life Insurance Company should be allowed to operate
in each state.

Regulatory Body

♦The Insurance Act should be changed.

♦An Insurance Regulatory body should be set up.

♦Controller of Insurance (Currently a part from the Finance Ministry) should


be made independent.

Investments

♦Mandatory Investments of LIC Life Fund in government securities to be


reduced from 75% to 50%.

♦GIC and its subsidiaries are not to hold more than 5% in any company
(There current holdings to be brought down to this level over a period of
time).
Customer Service

♦LIC should pay interest on delays in payments beyond 30 days.

♦Insurance companies must be encouraged to set up unit linked pension


plans.

♦Computerization of operations and updating of technology to be carried out


in the insurance industry.

Overall, the committee strongly felt that in order to improve the customer
services and increase the coverage of the insurance industry should be
opened up to competition. But at the same time, the committee felt the need
to exercise caution as any failure on the part of new players could ruin the
public confidence in the industry. Hence, it was decided to allow competition
in a limited way by stipulating the minimum capital requirement of Rs.1 bn.
This amount is not very high for foreign firms, as it translates to only about
US$25 million. Further, to date it is unclear whether equity should be
payable in one go or should be brought in as installments. Also, the foreign
equity participation was to be restricted to only 40%.The committee
felt the need to provide greater autonomy to insurance companies in order to
improve their performance and enable them to act as independent companies
with economic motives. For this purpose, it had proposed setting up an
independent regulatory body.

The industry and analysts find that there is lack of clarity in the following
areas:-
♦Though coverage of rural areas was to be made compulsory, it raises the
question as to who would subsidies the rural policies as they would be
difficult to service and hence costs will go up.
♦There is some confusion with respect to investments. Where the funds
should be invested? Currently 70% of the funds with LIC & GIC are
invested in Government securities. Would new entrants be allowed to invest
in GOI securities?
♦The report also does not enumerate exit options available to the new
entrants. In the event of failure, there should be an arrangement made
whereby the other Companies pool in to bail the customers, who in all
probability would be middle class individuals.

Potentiality of Insurance in Indian Market

Marketing inefficiency of general insurers has kept society in dark even


when so many personal as well as commercial lines of insurance covers are
available for them. Insurers have failed to identify the need of the individual
risk factors and thereafter selecting proper market segments and developing
demand of these needs by adopting proper marketing mix. There is great
scope of commercial line of insurance as we are developing at a very fast
rate but the potentiality and scope of personal lines of insurance is vast as
this area is still under-tapped. Product designing and pricing is also simple
and growth of this portfolio is guaranteed in this country which has a base of
over 100 crore population, where there are about 25 crore dwellings, 20 crore
schools, colleges and educational institutions and about 5 crore small and big
shops. But despite this the Indian insurers share in personal line of business
is very low or negligible.

There are enormous growth opportunities to Indian as well as foreign


insurers because of such a huge base of population there is ample scope to
introduce the new line of covers as per the changing needs and to increase
the per capita share of the insurance.

By encouraging risk transfer by investing small portion of the savings of the


individuals.By opening up the sector far more opportunities has came up in
insurance and reinsurance market. After privatization of this sector presence
of the foreign players has also increased. Therefore the insurers, in time to
come, will have to change their attitude from selling of the product to
marketing of the protection needs of the insured and for this is required is:

♦ Effective product planning


♦ Suitable pricing
♦ Efficient promotion and physical distribution.
♦ Proper physical evidence.
♦ Good and well trained sales force.

1.2 PROFILE OF THE ORGANISATION:

ICICI Prudential Life Insurance


ICICI Prudential Life Insurance is a joint venture between the ICICI Group
and Prudential PLC, of the UK. ICICI started off its operations in 1955 with
providing finance for industrial development, and since then it has
diversified into housing finance, consumer finance, mutual funds to being a
Virtual Universal Bank and its latest venture Life Insurance.
Foreign Partner:

Established in 1848, Prudential PLC. of U.K. has grown to be the largest life
insurance and mutual fund company in U.K. Prudential PLC. has had its
presence in Asia for the past 75 years catering to over 1 million customers
across 11 Asian countries.

Prudential is the largest life insurance company in the United Kingdom


(Source: S&P's UK Life Financial Digest, 1998).

ICICI and Prudential came together in 1993 to provide mutual fund products
in India and today are the largest private sector mutual fund company in
India.

Their latest venture ICICI Prudential Life plans to take care of the insurance
needs at various stages of life.

ICICI Prudential Life Insurance was established in 2000 with a commitment


to expand and reshape the life insurance industry in India. The company was
amongst the first private sector insurance companies to begin operations after
receiving approval from Insurance Regulatory Development Authority
(IRDA), and in the time since, has taken several steps towards its realizing
its goal.

The company's wide range of products, distribution strengths and powerful


brand has driven its growth across a cross-section of people and cities. As on
March 31, 2003, the company had issued nearly 350,000 policies, with a
total premium income of over INR 5 billion and a total sum assured in excess
of INR 87 billion. Today, the company has established itself as the No. 1
private life insurer in the country.
ICICI Prudential Life Insurance Company is a joint venture between ICICI, a
premier financial powerhouse and Prudential PLC, a leading international
financial services group headquartered in the United Kingdom. ICICI
Prudential was amongst the first private sector insurance companies to begin
operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).

ICICI Prudential’s equity base stands at Rs. 4.25 billion with ICICI Bank
and Prudential plc holding 74% and 26% stake respectively. As of March 31,
2003, the company had issued nearly 350,000 policies with a sum assured in
excess of Rs 8,700 crore and total premium income of over Rs. 500 crore.
Today the company is the #1 private life insurers in the country.

Company Vision

To make ICICI Prudential the dominant Life and Pensions player built on
trust by world-class people and service.

This is what ICICI Prudential hope to achieve by:

•Understanding the needs of customers and offering them superior products


and service
•Leveraging technology to service customers quickly, efficiently and
conveniently
•Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders

•Providing an enabling environment to faster growth and learning for ICICI


Prudential employees
•And above all, building transparency in all ICICI Prudential dealings.

The success of the company will be founded in its unflinching commitment


to 5 core values -- Integrity, Customer First, Boundary less, Ownership and
Passion. Each of the values describes what the company stands for, the
qualities of our people and the way we work.

We do believe that we are on the threshold of an exciting new opportunity,


where we can play a significant role in redefining and reshaping the sector.
Given the quality of our parentage and the commitment of our team, there
are no limits to ICICI Prudential growth.

Board of Directors

The ICICI Prudential Life Insurance Company Limited Board comprises


reputed people from the finance industry both from India and abroad.

Mr. K.V. Kamath, Chairman

Mr. Mark Tucker


Mrs. Lalita D. Gupte

Mr. Danny Bardin

Mrs. Kalpana Morparia

Mrs. Chanda Kochhar

Mr. M.P. Modi

Mr. R Narayanan

Mr. S.P.Subhedar, (Alternate Director to Mr. Danny Bardin)

Mr. Derek Stott, (Alternate Director to Mr. Mark Tucker)

Ms. Shikha Sharma, Managing Director

Management Team

Ms. Shikha Sharma, Managing Director

Ms. Anita Pai, Chief - Operations & Underwriting

Mr. Bill Lisle, Chief Agency Officer

Mr. Sandeep Batra, Chief Financial Officer & Company Secretary

Mr. Saugata Gupta, Chief – Marketing

Mr. Shubhro J. Mitra, Chief - Human Resources

Mr. V. Rajagopalan, Appointed Actuary


Mr. Anil Tikoo, Head - Information Technology

Products Insurance Solutions for Individuals:

ICICI Prudential Life Insurance offers a range of innovative, customer-


centric products that meet the needs of customers at every life stage. Its 13
products can be enhanced with up to 4 riders, to create a customized solution
for each policyholder.

Savings Solutions:

ICICI Pru Save n Protect is a traditional endowment savings plan that offers
life protection along with adequate returns.

ICICI Pru CashBak is an anticipated endowment policy ideal for meeting


milestone expenses like a child's marriage, expenses for a child's higher
education or purchase of an asset.

Protection Solutions:

ICICI Pru LifeGuard is a protection plan, which offers life covers at very
low cost. It is available in 3 options - level term assurance, level term
assurance with return of premium and single premium.

Child Solutions:

ICICI Pru SmartKid provides guaranteed educational benefits to a child


along with life insurance cover for the parent who purchases the policy. The
policy is designed to provide money at important milestones in the child's
life.

Market-linked Solutions:
ICICI Pru LifeLink is a single premium Market Linked Insurance Plan
which combines life insurance cover with the opportunity to stay invested in
the stock market.

ICICI Pru.LifeTime offers customers the flexibility and control to customize


the policy to meet the changing needs at different life stages. It offers 3
investment options - Growth Plan, Income Plan and Balanced Plan.

Retirement Solutions:

ICICI Pru ForeverLife is a retirement product targeted at individuals in their


thirties. Market-linked retirement productsICICI Pru

LifeTime Pension is a regular premium market-linked pensionplan

ICICI Pru LifeLink Pension is a single premium market-linked pension


plan.

Single Premium Solutions:


ICICI Pru AssureInvest is a single premium savings product with life cover
for terms of 5, 7 or 10 years.

ICICI Pru ReAssure is a retirement product for senior citizens who are on
the verge of retirement or have just retired.

ICICI Prudential also launched ''Salaam Zindagi'', a social sector group


insurance policy targeted at the economically underprivileged sections of the
society.

Group Insurance Solutions:

ICICI Prudential also offers Group Insurance Solutions for companies


seeking to enhance benefits to their employees.
ICICI Pru Group Gratuity Plan:

ICICI Pru''s group gratuity plan helps employers fund their statutory gratuity
obligation in a scientific manner. The plan can also be customized to
structure schemes that can provide benefits beyond the statutory obligations.

ICICI Pru Group Superannuation Plan:

ICICI Pru offers a flexible defined contribution superannuation scheme to


provide a retirement kitty for each member of the group. Employees have the
option of choosing from various annuity options or opting for a partial
commutation of the annuity at the time of retirement.

ICICI Pru Group Term Plan:

ICICI Pru''s flexible group term solution helps provide affordable cover to
members of a group. The cover could be uniform or based on
designation/rank or a multiple of salary. The benefit under the policy is paid
to the beneficiary nominated by the member on his/her death.

Flexible Rider Options:

ICICI Pru Life offers flexible riders, which can be added to the basic policy
at a marginal cost, depending on the specific needs of the customer.
1.Accident & disability benefit: If death occurs as the result of an accident
during the term of the policy, the beneficiary receives an additional amount
equal to the sum assured under the policy. If the death occurs while traveling
in an authorized mass transport vehicle, the beneficiary will be entitled to
twice the sum assured as additional benefit.

2. Accident benefit: This rider option pays the sum assured under the rider
on death due to accident.
3.Critical Illness Benefit: protects the insured against financial loss in the
event of 9 specified critical illnesses. Benefits are payable to the insured for
medical expenses prior to death.

4.Major Surgical Assistance Benefit: provides financial support in the


event of medical emergencies, ensuring that benefits are payable to the life
assured for medical expenses incurred for surgical procedures. Cover is
offered against 43 different surgical procedures.

About The Partners

ICICI Bank (NYSE:IBN) is India’s second largest bank with an asset base
of Rs. 106812 crore. ICICI Bank provides a broad spectrum of financial
services to individuals and companies. This includes mortgages, car and
personal loans, credit and debit cards, corporate and agricultural finance. The
Bank services a growing customer base of more than 7 million customer
accounts and 5 million bondholders accounts through a multi-channel access
network. This includes about 450 branches and extension counters, 1675
ATMs, call centres and Internet banking (www.icicibank.com). ICICI Bank
posted a net profit of Rs.1, 206 crore for the year
ended March 31, 2003. ICICI Bank is the only Indian company to be rated
above the country rating by the international rating agency Moody''s and the
only Indian company to be awarded an investment grade international credit
rating. The Bank enjoys the highest AAA (or equivalent) rating from all
leading Indian rating agencies.

Established in 1848, Prudential plc is a leading international financial


services company in the UK, with some US$250 billion funds under
management and more than 16 million customers worldwide. Prudential has
brought to market an integrated range of financial services products that now
includes life assurance, pensions, mutual funds, banking, investment
management and general insurance. In Asia, Prudential is UK''s largest life
insurance company with a vast network of 22 life and mutual fund operations
in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea,
Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since
1923, Prudential has championed customer-centric products and services,
supported by over 60,000 staff and agents across the region.

Insurance Plans

Savings Plans:

Most endowment policies are a good way of saving for the future. A policy
can be designed to make your savings grow and have them available to you
at the end of a fixed number of years. Or, a policy could provide you with an
income every three or four years.
You can browse through these policies to find one that best suits your needs:

•SmartKid - a superior way to guarantee your child’s future no matter what


the uncertainty.

•LifeTime - a complete market-linked insurance plan that adapts itself to


your changing protection and investment needs, throughout a lifetime.
•Save'n' Protect - a traditional endowment savings plan that offers both high
returns and protection.

•CashBak - an endowment savings plan that allows you to get back


substantial survival benefits without having to wait till the maturity date.

Depending on your particular needs, Savings Plans could allow you to


do one or more of the following:

•Plan For Tangibles: buy that fashionable car, that huge refrigerator, etc.

•Plan For A Cosy Nest: by facilitating the purchase of that home you have
always dreamt of.

•Plan For Milestones: ensure a good education for your children, children's
wedding, etc.

•Save on Deferred Taxes: because the interest income and maturity benefits
of the Policy are tax exempt.

•Lifestyle Planning: maintain your lifestyle - even if your income was to


reduce in the future.

•Legacy Creation: buy property; invest in shares, bonds, etc. for your
children or grandchildren.

•Attain Greater Heights: ensure that your children's education continues


undisrupted.
Protection Plans

We all hope to live a full life till a ripe old age... to ensure our children's
sustenance and healthy growth. But what if a sudden disability or illness
strikes? Besides the grief and the pain, such an event also completely
disrupts life for all the people who are financially dependent on us. Our life
insurance policies offer a comprehensive range of protection benefits:

•Lifeguard - A low cost-high protection plan that offers protection over a


specified period.

•Riders - Additional benefits that one can add on to the policy. The rider can
be opted for at the time of taking the basic policy. Additional premium is
charged for each rider.

•An insurance policy can be tailor made to provide protection to you and
your loved ones. If something were to happen to you, it can help:

•Safeguard Your Better Half: ensure life's continuity for your loved one.

•Dear and Near Ones: ensure continuity of lifestyle for your dependents.

•Attain Greater Heights: ensure your children's education continues


undisrupted.

Unforeseen circumstances: bear the cost of fighting an illness, disability,


etc.

Retirement Plans

Most of you picture yourselves enjoying the fruits of labor after retirement,
going on your dream vacation, or helping your children's career take wing.
But do you realize that financing all this will most likely depend partly on
your personal savings? Because personal savings and investments represent a
significant source of retirement income for many people, you can never save
too much.

Currently, you are at a stage where you are juggling many roles, as nurturing
parents, dutiful caregivers to elders, supportive life partners, while trying to
maintain a career. It is too easy to get carried away handling and solving the
day-to-day problems to not look into your retirement needs. It may also seem
too far away to be of concern. But a look at the issues below will make the
need for some strategic planning at this stage amply clear.

Today, thanks to a healthier lifestyle and advances in medicine, the average


Indian lives longer. This makes the challenge of accumulating enough
money for retirement even more difficult, since it may have to last longer.
Also, with the falling interest rate scenario and the rising costs of medical
expenses retirement means monetary uncertainty for most of us. More so,
because there is also the ever-persistent evil of inflation, which erodes your
purchasing power. The graph below illustrates how much Rupees will
10,000/- amount to after some years:

Inflation erodes your purchasing power

8000
7000
6000
5000 Inflation rate at
4000 10%
3000 Inflation rate at
5%
2000
1000
0
5yr 10yr 20yr 30yr

Therefore, the message is simple - no matter whether you are 30 or 50, you
should start planning early to have a healthy retirement kitty. (See graph
below for an illustration)

Start early, Gain more


2000000
1800000
1600000
1400000
1200000 Saving
1000000
800000 Retirement
600000 Kitty
400000
200000
0
A B

As can be seen the cost of delaying is high. Situation A is when you are
saving Rs 10000 annually from the age of 25 to 34 years and Situation B is
when you save the same annual amount from the age of 35 to 59 years. As
can be seen in the example, even after investing your money for a 2.5 times
longer duration, the maturity value in the second case is much lesser (the
figures are based on a hypothetical interest rate of 10%). The longer your
money is allowed to grow at a compounded rate, the more dramatic will the
difference be eventually.

Therefore, the message is simple - Put Time on Your Side and Start Early.

ICICI Prudential Life Insurance believes in the philosophy of providing


meaningful and comprehensive insurance solutions to plan your retirement.
Our insurance solutions are the most optimal tools to plan your retirement
because they give you Safety, Liquidity, Tax benefits, Health cover and Life
protection and thus ensure that you are comprehensively covered.

ICICI Prudential offers flexible products for planning your retirement:


ForeverLife - A deferred annuity plan that helps you save for retirement
while providing you life insurance protection.
LifeLink Pension- A single premium plan which allows you to park a
lump sum amount for a secure future.

LifeTime Pension - A plan which gives you the twin benefit of market-
linked annuity and life insurance cover.

ReAssure - A plan that helps you invest your money prudently and
safely and offers you the benefit of a regular income while providing you life
insurance protection.

Depending on your particular needs, our Retirement Solutions could allow


you to do one or more of the following:

Maintaining the Same Living Standard Post-retirement:

Get your retirement monies to earn you the benefit of a regular income
while providing life insurance protection. So now you can really enjoy even
your post-retirement days.

Provide for a Lifetime of Pension:

Annuities can play a valuable role in retirement saving. A deferred annuity


allows you to accumulate money for retirement on a tax-deferred basis. You
are also in control of when you want to begin receiving payments. An
annuity gives you a fixed income for life.
Protect Your Better Half:

If you are married, it is preferable that your retirement plan includes your
spouse. The "Joint Life Last Survivor" annuity option in ICICI ForeverLife
pays benefits as long as either one of you is living.

Investment Plans:
Often you may have some investible funds lying idle - a bonus or maybe a
windfall. You can either secure your family through insurance or invest it for
growth. The need for insurance is crucial but you also want to see your
money grow through market investments. But in volatile market conditions
how do you secure both?

Relax, because now you can hedge your investments with safer investment
vehicles that provide you with a diversified portfolio.

ICICI Prudential Life Insurance presents a package of Investment Solutions,


which provide you high returns, while guaranteeing complete peace of mind.

This follows from our understanding that life has many facets and they are
manifested through its various needs. Therefore our philosophy is to provide
you with comprehensive insurance solutions that cater to your dual needs of
earning potentially high returns as well as stay insured for life. Thus we offer
you a unique package of Investment Solutions that combine the best of
insurance and investment.

ICICI Prudential offers flexible solutions for planning your investment.

 LifeLink - an investment plan that gives you the flexibility of choosing


your investment options while keeping you insured for life.

AssureInvest - a single premium endowment plan that gives you


potentially high returns coupled with insurance protection.
Depending on your particular needs, Investment Plans could allow you
to do one or more of the following:

•Plan for Tangibles: buy that fashionable car, that huge refrigerator, etc.

•Earn Market-linked Returns: earn market-related returns while your


family remains protected, even in volatile market conditions.

•Save on Deferred Taxes: because the interest income and maturity benefits
of the Policy are tax exempt.
•Lifestyle Planning: maintain your lifestyle - even if your income was to
reduce in the future.

•Legacy Creation: buy property; invest in shares, bonds, etc. for your
children or grandchildren

Group Insurance Solutions

Employee care - the defining edge

In this new age of rapid developments and just-in-time methodologies, one


big challenge that organizations face is to establish and maintain a
competitive edge over others. Today's cutting-edge product or service
becomes tomorrow's undifferentiated commodity. In an era of competitive
parity, the only asset that makes a decisive difference between corporate
success and failure is the quality of human capital.

Investment in one’s employees is an investment in the future:

Employees are a company’s human capital. Not only do companies care for
them, but also provide an environment that fosters a deep and lasting sense
of belonging. Employees determine the present and decide the future of a
company.

Employee benefits have proven to be an excellent tool to optimize the


retention of talent and improve an organization’s bottom line. The quality of
an organization’s employee benefits establishes and maintains a company's
image as a caring employer. Optimum care of employees is a long-term
investment that results in a sustained competitive advantage for an
organization in the times to come.

ICICI Pru Group Insurance Solutions Advantage


•An integrated basket of flexible group insurance solutions that offer
incomparable flexible benefits.

•Sound investment management that focuses on safety, stability and


profitability of the portfolio.

•Personalized financial planning for your employee that takes care of his/her
changing financial needs at every stage of life.

•Quality service initiatives and transparency across all operations, promising


superlative operational efficiency.

Group Gratuity Plan:

A plan that helps employers funds their statutory gratuity obligation in a


scientific manner.

Group Term Assurance: A plan that helps provides affordable cover to


members of a group.
Group Superannuation Plan: A flexible Defined Contribution
Superannuation scheme that provides for a retirement kitty for each member
of the group.

Contact Information

ICICI Prudential Life Insurance Company Limited


Registered Office

1089, ICICI Prudential Towers,


Appasaheb Marg,
PrabhaDevi,Mumbai - 400 051.

1.3 PROBLEMS OF THE ORGANISATION:

Multiple players in the life insurance so, ICICI Prudential faces very tough
competition from other leaders in the industry. The ICICI Prudential needs to
work hard in order to stay competitive insurance market. Further, the ICICI
Prudential should appoint professional agent who should be able to provide
customer with a comparison of multiple schemes and also explain them in
simple terms, so that customer able to make an informed decision.

1.4 S.W.O.T. ANALYSIS

Strengths

The biggest strength of this organization is the:

Money power, which makes them ignorant about the gestation period.

Brand image, Business experience, and Innovative products

The agents are very selectively chosen have excellent communication


skills.

Service quality, which is the crux of their mission.

Large network branches which is helped to customer for the payment

Weaknesses

High targets for financial advisors and for the sales departments.

Many competitors in the market offer same product by the little difference
in the premium and offerings.

Sustainable to risk associated with investments in money market.


Try to catch middle-lower level people also.

Opportunity

Huge market is literally untapped; out of estimated 320 millions insurable


markets only 20% of the population is insured.
Health insurance and pension schemes, an estimated market potential of
approximately $15 billion.

ICICI Prudential should give the insurance coverage both to the parent and
child so that their life could be covered in both cases. The customer doesn’t
mind paying some extra premium for that.

Threats

Players like Bajaj and Birla Sun life with low premium for the similar
plans.

Entry of many other private companies with equally strong experience and
financial strength of foreign partners making the competition difficult and
saturating the urban markets.

Current Govt. policies do not encourage gross domestic savings. If the tax
liability of the service class rises, the customer will have little money to
invest.

LIC has woken up from sleep and is following competitive strategies. Its
huge surplus in Life Fund gives a capability to lodge Price war.

1.5 COMPETITION INFORMATION:


•Bajaj Allianz General Insurance: Bajaj Allianz General Insurance
Company Limited is a joint venture between Bajaj Auto Limited and Allianz
AG of Germany. Both enjoy a reputation of expertise, stability and strength.

•Birla Sun Life Insurance: The Aditya Birla Group contributes its
knowledge of the Indian market while Sun Life Financial contributes global
expertise in the areas of protection and wealth management.
•HDFC Standard Life Insurance: HDFC and Standard Life have a long
and close relationship built upon shared values and trust. Providing long term
financial security to policy holders will be the constant endeavor.

•ING Vysya Life Insurance: ING, the world’s second largest life insurance
company together with Vysya Bank, one of India’s leading private sector
banks, forms ING Vysya Life Insurance.

•Life Insurance Corporation (LIC): Life Insurance Corporation (LIC) has


been one of the pioneering organizations in India who introduced use of
Information Technology in their business.

•MetLife India: The Metropolitan Life Insurance Company is the number


one insurer in the U.S. It is helping build financial independence for its
customers.

•Oriental Insurance: The Oriental Insurance Company Ltd. (OICL) is one


of the leading General Insurance companies in India and is a subsidiary of
the General Insurance Corporation (GIC) of India.

•Royal Sundaram Alliance Insurance: Royal Sundaram marks the coming


together of Sundaram Finance; one of India’s most respected and trusted
finance companies, and Royal and Sun Alliance, one of the largest insurance
groups in the world.

•Tata AIG Insurance: Life insurance & general insurance for individuals &
corporates by Tata AIG. This site will guide you on how to capitalize on
opportunities and protect against uncertainties.
Chapter 2

OBJECTIVE & METHODOLOGY

2.1 SIGNIFICANCE OF THE STUDY

A study of the products and services of the ICICI Prudential Life Insurance
will help me understand the difference between its products and that of
competitors. Also I will get to know the consumer perception about the
various life insurance products available in India

2.2 MANAGERIAL USEFULNESS OF THE STUDY

ICICI Prudential Life Insurance has a place in the Insurance sector. The
study of its marketing strategies and consumer perception of life insurance
product will give me a crucial idea behind the success of the company and
the facets of marketing that made the success possible.

2.3 OBJECTIVES OF THE STUDY

1. To Study the marketing strategies of ICICI Prudential Life Insurance

2. To study the consumer perception about the various life insurance


products available in India.

3. To analyze the life insurance products of ICICI Prudential Life Insurance


Company and compare them with other players in Life Insurance segment.
2.4 SCOPE OF THE STUDY

The study is for the products of ICICI Prudential Life Insurance and
Consumer Perception of life insurance product will be limited to the New
Delhi and NCR only. The information will be based on the company’s
website, literature provided by the company and questionnaire analysis.

2.5 METHODOLOGY

Primary Sources:

Data collected from Insurance companies through verbal Questionnaire

Secondary Sources:

•IRDA act, 1999

•Handbook of Insurance agents of different Life Insurance companies

•Internet websites of IRDA and various Life Insurance companies & various
websites.

The primary study will be targeted towards the marketers. The study will
also include semi-structured interview with marketing managers of various
Insurance companies who are successfully selling Life Insurance Policies to
Indian Consumers.

The Secondary Sources will help in tracing the historical framework of


Insurance companies of post independent India as well as the pre-
privatization and post-privatization Insurance environment in India. This
secondary study will help in serving the theoretical groundwork for the
study.
Chapter – 3

CONCEPTUAL DISCUSSION

MARKETING CONCEPT IN FINANCIAL SERVICES MARKETS

Financial Services Marketing

According to ‘Philip Kotler’:

“Marketing is a social and managerial process by which


individuals and groups obtain what they need want through
creating, offering and exchanging products of value with
others. This definition of marketing rests on the following
core concepts: needs, wants, and demands; products (good,
services and ideas); values, cost and satisfaction;
exchanger and transactions; relationships and networks;
markets; and marketers and prospects".
The concept of financial Services Markets is a combination of two different
words, Finance and Marketing. In a true sense, it is application of marketing
principles in the financial services or conceptualization of marketing in the
decision-making process of financial organization.

It is a right to say that financial marketing is related to the product,


promotion, place, and pricing and people decisions of the financial
organizations, which simplify the taste of restructuring of revamping their
decisions in tune with the changing business environment. In addition, the
financial marketing also includes in it’s the activities related to the
behavioral profile of the customers and the marketing information system so
that the marketing decision involve more dynamism in it’s to meet the
financial and more the customers and
market. The right from the making of services product, promotion, place,
pricing and people decisions to the study of financial organisations and
customers, market conditions and environment become an integral part of
financial marketing. Further it also includes in its purview the auditing of
marketing strategies so as to make the marketing decisions creative and
innovative.

In an age of electronic financial services the concept of financial marketing


is required to be reviewed. The emerging trends in the word economy
indicate recession, the mounting intensity of competition, and the increasing
domination of information technologies.

Thus we find financial marketing helping an optimal blending of the core


and peripheral services. The elimination and inclusion processes it the
service mix are done effectively and this simplified the task of formulating
and innovating the product mix in tune with the changing expectations of
customers.

DISTINCTION BETWEEN SERVICES MARKETING AND


PRODUCT MARKETING

Nature and Role of Goods Marketing

In manufacturing, the marketing function plays an important role in the


identification of customer’s need. Here customer needs are identified before
production. Customers assess the brands promised benefits during
consumption, strengthening or weakening brand preference accordingly. In
figure below the sequence of the four functional phases are show. It also
gives the contributions of post-production marketing, consumption and word
of mouth communications.

Nature of Role of Goods Marketing

Create Awareness
Marketing
Pre-production
Production Induce Trial

World of Mouth
Communication
Post-production Demonstrate Benifits
Marketing

Build Brand
Consumption Preference

Strong Influence Weak Influence

Nature and Role of Services Marketing

Although both services marketing and goods marketing start with the critical
need identification and product design functions, goods generally are
produced before it is sold and services generally are sold before it is
produced. Moreover, services marketing has more limited influence an
customers before the purchase than goods marketing. Figure given below
shows the nature and roles of marketing for services.

In services, both post sale marketing and word-of-mouth communication has


prominent effect in winning customers loyalty. Thus, services marketers can
create brand awareness, and include trial before the sale, but they
demonstrate benefits and build brand awareness most effectively after the
sale.

Nature and role of Service Marketing

Pre production Create Awareness


marketing
Induce Trial
Word of Mouth
Communication
Post-production Demonstrate
Marketin, Benefits
Consumption &
Marketing
Build Brand
Preference

Strong Influence Weak Influence

MEANING OF INSURANCE
The business of insurance is related to the protection of the economic value
of assets. Every asset has a value. The asset would have been created through
the efforts of the owner, in the expectation that, either through the income
generated there from or some other output, some of his needs would be met.
In the case of a motorcar, it provides comfort and convenience in
transportation. There is no direct income. There is a normally expected
lifetime for the asset during which time, it is expected to perform. The
owner, aware of this, can so manage his affairs that by the end of that life
time, a substitute is made available to ensure that the value or income is not
lost. However, if the asset gets lost earlier, being destroyed or made non-
functional, through an accident or other unfortunate event, the owner and
those deriving benefits there from suffer. Insurance is a mechanism that
helps to reduce such adverse consequences.

Life Assurance

It is the business of effecting contracts of insurance upon human life,


including any contract whereby the payment of money is assured (except
death by accident only) or the happening of specified any contingencies
dependent on human life, like death a specified age. The contract would be
subject to the payment of premiums for a term,

Non-Life Insurance or General Insurance

Even though conventional classification of General Insurance has been in


three branches-

1.Fire Insurance

2.Marine Insurance

3.Miscellaneous (Accident) Insurance,

In modern times, it is classified as follows:

a)Insurance of Person

b)Insurance of Property

c)Insurance of Interest

d)Insurance of Liability

WHY INSURANCE?
However there is a normally expected life cycle for every asset during which
time it is expected to perform its assigned role. So, a prudent individual can
manage his affairs so that by the end of that life cycle, a substitute is in place
to ensure continued benefit/comfort. However, if due to an accident or other
unfortunate event, the asset gets destroyed or made non- functional, the
person deriving benefits there, from suffer. Insurance is the mechanism that
helps to soften the impact of such adverse consequences by providing for
some monetary substitution to face such unforeseen circumstances.

The need of insurance arises from the chances of an accidental occurrence


destroying or making an asset non-functional. Such loss producing
eventualities are called perils e.g. Fire, floods, breakdowns, lightning,
earthquakes, etc However, it has to be remembered that what is being talked
about is only a probability of a loss. The protection of Insurance is against a
contingency that may or may not happen.

A business man always keeps some reserve to meet the future unexpected
loss. In our day to day life we also plan for secured future. Similarly to face
and to overcome the unexpected risk of life one must have to insure his/her
life.

THE INSURANCE BUSINESS

The business of insurance done by insurance companies (called insurers),


is to
bring together persons with common insurable interests (sharing the same
risks) collecting the share or contribution (called premium) from all of them,
and paying out compensations (called claims) to those who suffer. The
premium is determined as indicated above with some addition for the
expenses of administration.

The insurer acts as a trustee for managing the common fund for and on
behalf of the community. He has to ensure that nobody is allowed to take
undue advantage of the arrangement. In other words the management of the
business requires care to prevent entry into the group of people whose risks
are not of the same kind, as well as not paying claims on losses which are not
accidental. The decision to allow entry is the process of underwriting of risk.
Both underwriting and claim settlement have to done with great care.

INSURANCE AS A SOCIAL SECURITY TOOL

On the eve of the promulgation of the Life Insurance (Emergency Provision)


Ordinance the then Finance Minister C.D. Deshmukh said in his broadcast to
the nation. "The nationalisation of Life Insurance will be another milestone.
In the implementation of the Second Five Year Plan, it is bound to give
material assistance. Into the lives of millions in the rural areas, it will
introduce a new sense of awareness of building for the future in the spirit of
calm confidence which insurance alone can give. It is a measure conceived
in a genuine spirit of service to the people. It will be for the people to
respond, confound the doubters and make it a resounding success. With this
as the guiding light the corporate objectives of the Life Insurance
Corporation inter alia sought to achieve the following:

•Spread Life Insurance much more widely and in particular to the rural
areas and to the socially and economically backward classes with a view to
reach all insurable persons in the country and providing them adequate
financial cover against death at a reasonable cost.

•Maximize mobilization of people's savings by making insurance-linked


savings adequately attractive.
•Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the best
advantage of the investors as well as the community as a whole, keeping in
view national priorities and obligations of attractive return.

•Conduct business with utmost economy and with the full realization that
the moneys belong to the policyholders.

•Act as trustee of the insured public in their individual and collective


capacities.
The need for these objectives is obvious in the eyes of a family which may
have lost its sole bread winner. With his death the family's income dies. The
economic condition of the family is affected, unless other arrangements
come into being to restore the situation. Life insurance provides such an
alternate arrangement. If there was no life insurance the social cost would be
reflected in a impoverished family becoming a burden on the Government or
taking to anti social means to make both ends meet. Therefore, the life
insurance business is complimentary to the state's efforts in social
management.

Conceptually under a socialistic system it is the responsibility of the State to


find resources for providing social security, where as in a capitalistic society,
providing for security is largely left to the individuals. The society provides
instruments like insurance, which

can be used in securing this aim. However the distinction between


these systems have got blurred over a period of time, with Socialists leaving
individuals to fend for themselves and Capitalist taking the first steps to
social security.

In India, Article 41 of our Constitution requires the State, within the limits of
its economic capacity and development, to make effective provision for
securing the right to work, to education and to provide public assistance in
case of unemployment, old age, sickness and disablement and in other cases
of undeserved want. Part of the State's obligations to the poorer sections, are
met through the mechanism of life insurance.

In keeping with its social responsibility as an instrument of the Government


and as a good business organization LIC has made payments to
policyholders amounting to Rs.11,170 crores in 1999-2000 (as against
Rs.9,106 crores in the previous year). During the same period, LIC settled
66.42 lacs claims for an amount of Rs. 9211 crores.
ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT

Insurance benefits society by way of

a)Providing relief to the insured from any mishappening.

b) Reducing burden of Government in providing relief to the senior citizens.

c) Providing funds to Govt. for nation building activities.

Direct investments made by LIC serve a twofold purpose. It acts as a major


instrument for the mobilization of savings of people, particularly from the
middle and lower income groups. These savings are channelled into
investments for economic growth thereby creating

employment. These savings in turn go into the task of nation building.


As on 31.3.2000, the total investments of the LIC exceeded Rs 1,47,000
crores, of which more than Rs. 84, 000 crores were directly in Government
(both State and Centre) related securities, nearly Rs.12,000 crores in the
securities State Electricity Boards, Rs.16,000 crores in housing loans and
Rs.3,000 crores in water supply and sewerage systems: Other investments
included road transport, setting up of industrial estates and direct financing
of industry. Investments in the corporate sector (shares, debentures and term
loans) exceeded Rs. 28,000 crores.

LEGISLATIVE AND REGULATORY MATTERS


Market consists of buyers, sellers, intermediaries and regulators. There is
hardly any market which is not regulated. As between markets, the only
difference in the matter of regulation could be in the degree of regulation
which is exercised in different markets but every market is regulated without
exception.
For regulating any market, laws are required to be passed by the appropriate
legislature. The market economy has to function within the legal framework.
The legal frame work in turn has to undergo changes to take care of the
market aspirations and the advancement in technology.
Some of the important legislative measures taken up in the insurance sector
of the Indian economy are considered herein.

LIFE INSURANCE CORPORATION ACT, 1956

Life Insurance business in India was nationalised with effect from 1st
September 1956. From this date, the life insurance business transacted by
154 Indian life insurers, the Indian business of 16 foreign insurers and 75
provident societies was taken over by Government of India. Earlier, LIC of
India Act had been passed by the Parliament on 18th June 1956 which came
into effect from 1st. July 1956. Some of the important provisions of this Act
(as amended by IRDA Act 1999) are stated hereafter.
Life Insurance Corporation (LIC) was established w.e.f. 19 May 1956, as a
body corporate having perpetual succession and a common seal with power
to acquire, hold and dispose of property and may by its name sue and be sued
in its name. It consists of not more than 16 members appointed by the
Government, one of whom shall be appointed as its Chairman.

Under Section 30 of the LIC of India Act, from the appointed date i.e. 1 Sept
1956, the corporation shall have the exclusive privilege of carrying on life
insurance business in India and that certificate of registration granted to any
insurer under the Insurance Act, 1938 shall cease to have effect from the said
date. Now the above provisions of Section 30 have been altered by insertion
of Section 30A consequent to the enactment of the IRDA Act, 1999. As a
result, the exclusive privilege given to the LIC has been withdrawn.
Chapter – 4

DATA ANALYSIS

Data gives preference of respondents of insurance company.

Company’s Name No.Of Respondent Share(%)


LIC 78 78
SBI Life Insurance 7 7
ICICI Prudential 10 10
OM Kotak Mahindra 3 3
HDFC 2 2
Total 100 100
80
LIC
70
60
No.Of Respondent

SBI Life
50 Insurance
40 ICICI Prudential

30
OM Kotak
20 Mahindra
10 HDFC
0

Interpretation

78% of the people have LIC policy and is ranked number one by that percent
of respondent.

Data gives benefits of insurance cover perceived by respondents.

Benefits No. Of Respondent Share(%)


Cover future 55 55
Uncertainity
Tax Deduction 20 20
Future Investment 25 25
Total 100 100
60

50
No. Of Respondents

Cover Future
40 Uncertainity
Tax Deduction
30

20 Future Investment

10

Interpretation

55% of the respondents believe that covering future uncertainty is the biggest
benefit of insurance policy20% & 25% of them believe that other benefits
are tax deduction & future investment

20% & 25% of them believe that other benefits are tax deduction & future
investment

Data provides features of insurance policy attracted the respondents.

Feature No. Of Respondent Share (%)


Money Back Guarantee 15 15
Larger Risk Coverage 37 37
Easy Access to Agent 7 7
Low Premium 30 30
Reputation Of 11 11
Company
Total 100 100
Features Of Insurance Policy

Money Back Guarantee


Larger Risk Coverage
Easy Access to Agent
Low Premium
Reputation Of Company

Interpretation

Majority of the respondent found larger risk coverage as the most attracted
feature of their policy.

Data provides number of insurance policy type respondents.

Policy Type No. Of. Respondents Share (%)


Life Policy 75 75
Non- Life Policy 25 25
Both 45 45

Nature of Policy
80

No. Of. Respondents


70
60
50
Life Policy
40
Non-Life Policy
30
20 Both
10
0
Chart Types

Interpretation

75% of the respondents have life insurance policy while 45% have both.

Chapter 5

FINDINGS AND RECOMMENDATIONS

5.1 FINDINGS

The project study report has the following findings:


1. Almost 80% of respondents have an insurance policy.
2. People have more number of life insurance policies as compared to non
life insurance.
3. Majority of the respondent preferred/have L.I.C. policy since it was the
only option due to complete government control in insurance sector.
4. Majority of the respondents believe that covering future uncertainty is the
most important benefit of an insurance policy.
5. Majority of the respondent believed that larger risk coverage of their
policy was the main feature of their policy that attracted them to buy that
policy though low premium was the next important feature.
6. Due to the increasing concern of people towards their health/life the life
insurance business has good prospects.
7. Due to increased in consumerism new product is launched everyday. Thus
non-life/general insurance business is also going to have boom period.
8. ICICI Prudential is the largest private player in the insurance industry in
India. It has sold over one lakh fifty thousand policies till date. Besides LIC,
ICICI Prudential is facing stiff competition from other private insurance
players.
9. Out of total population of 1 billion of country, only 22% have insurance
cover. So we can say that there is still large potential for both the public and
private companies. Private companies have to give varied customized
product to compete with the LIC which is holding about 97% of the total
market.

5.2 RECOMMENDATIONS

The insurance companies should now try to identify the gap between current
level of customer service and customer expectations. Some of the strategies
being recommended are as follows:

Product Differentiation: Offering a product that is distinctly different


from other products available in the market.

Innovativeness: Identifying means of a delightful customer experience.

Riders: These are additional offerings along with the main product.

Flexibility: The companies should make their products flexible for the
convenience of their customer.
Hassle Free Service: All bureaucracy in customer interactions should be
eliminated.

Proper Policy Documentation: Wrong interpretations/ non-awareness of


policy document by the customer may have serious implications in the long
term and the possibility of the same should be alleviated by the insurance
companies.
ANNEXURES

QUESTIONNAIRE

1. Are You Employed?

Yes [ ]

No [ ]

2. Do you have any insurance policy?

Yes [ ]
No [ ]

If Answer of Q.2 is Yes, then proceed else answer Q.8

3. Which insurance policy do you have?

Life [ ]
Non-Life [ ]
Both [ ]

4. Which Company’s Insurance Policy you prefer the most?


(Rank them)
a) LIC [ ]
b) ICICI Prudential [ ]
c) SBI Life Insurance [ ]
d) ING Vysya Life [ ]
e) Om Kotak Mahindra [ ]
f) TATA AIG Life [ ]
g) Any Other (please specify)________________________

5. For how many years do you have insurance policy? (Please tick)
a)<5YRS

b) 5-10 YRS
c)10-15 YRS
d) Any Other (please specify)_____________________________

6. What do you think are the benefits of insurance cover? (rank them)
a) Cover Future Uncertainty
b) Tax Deductions
c) Future Investment
d) Any Other (please specify)_____________________________

7. Which feature of your policy attracted you to buy it? (Rank Them)
a) Low Premium
b) Larger Risk Coverage
c) Money Back Guarantee
d) Reputation of Company
e) Easy Access to Agents
f) Any Other (please specify)_____________________________

8. YOUR MONTHLY HOUSEHOLD INCOME?


a) <10k
b) 10k-20k
c) 20k-30k
d) 30k-40k
e) Any Other (please specify)_____________________________

9. Do you really think insurance policy cover in today’s scenario is not


essential?
_____________________________________________________________
_____________________________________________________________
__________

THANKYOU!

NAME: _________________________
ADDRESS:

OCCUPATION:___________________

COMPARATIVE ANALYSIS OF MAJOR INSURANCE PLAYERS


MONEYBACK POLICIES - 20 Years (Increasing insurance cover, Tax-free money
receivable at regular intervals)

ALLIANZ BIRLA ICICI PRU ING VYSYA LIC OM TATA AIG


BAJAJ SUNLIFE KOTAK
(Rs) Cash care Money Cash Back Maximizing Life Money Back Money Back Assure 21
Protect Pack Back Moneyback Years Money
Saver
Sum 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000
Assured
Term(yrs) 20 20 20 20 20 20 21

Prem. 20 20 20 20 20 20 21
Paying
term(yrs)
Yrly. Prem. 6,402 6,144 6,818 6,158 6,564 7,495 9,369

Tot. Prem. 1,28,040 1,22,880 1,36,366 1,23,160 1,31,280 1,49,900 1,96,749

ALLIANZ BIRLA ICICI PRU ING VYSYA LIC OM TATA AIG


BAJAJ SUNLIFE KOTAK
(Rs) Cash care Money Cash Back Maximizing Life Money Back Money Back Assure 21
Protect Pack Back Moneyback Years Money
Saver
Death
Benefit
Min. Cover 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000

Year 8 1,26,677 1,48,080 1,36,857 1,00,000+Bonus 1,46,400 1,56,000 1,47,746

Year 16 160,471 243,854 1,87,298 1,92,800 2,12,000 2,28,287

ALLIANZ BIRLA ICICI PRU ING VYSYA LIC OM TATA AIG


BAJAJ SUNLIFE KOTAK
(Rs) CashCare Moneyback Cashbak Maximizing Life Moneyback Money back Assured 21
Protect Single Moneyback Years Money
Cover Saver
Interim 10,000Yr 4, 15,000 Yr 5, 10,000Yr4, 20,000 Yr 5, 20,000Yr5, 20,000Yr5, 10,000Yr3,
Benefits 15,000Yr 8, 15,000Yr10, 15,000Yr8, 20,000 Yr 10, 20,000Yr10, 20,000Yr10, 10,000Yr6,
25,000Yr12, 15,000Yr 15 20,000Yr12, 20,000 Yr 15 20,000 Yr15 20,000 Yr15 10,000Yr9,
25,000Yr16 25,000 Yr16 10,000Yr12,
10,000Yr15,
10,000 Yr18
Maturity Benefits

On 130,611 217,048 169,112 40,000 + bonus 156,000 130,300 228,596


Maturity
Total amt 205,611 217,048 239,112 100,000+bonus 216,000 190,300 288,596
Rate of return (%)
Pre-tax 6.8 5.2 7.0 Not indicate 6.5 3.3 4.3
Post-tax 11.9 8.2 11.7 Not indicate 11.7 8.4 8.6
30%
Post-tax 9.9 7.1 9.9 Not indicate 9.7 6.4 6.9
20%
Post-tax 9.1 6.5 9.1 Not indicate 8.8 5.6 6.2
15%

Comparison Of Premium of Money back Policies


Age 30 years Policy Term 20 Years Age 30 years Policy Term 15 Years
PREMIUM PREMIUM
Company SA:1Lac SA:2lac Company SA:1Lac SA:2Lac
1 LIC 6280 12559 1 LIC 7953 15906
2 ICICI PRU 6592 12884 2 ICICI PRU 9094 17888
3 ALLIANZ BAJAJ 6158 11836 3 ALLIANZ BAJAJ 8362 16244
4 TATA-AIG 9099 17698 4 TATA-AIG N.A N.A
5 OM KOTAK 7120 14240 5 OM KOTAK 8890 16480
6 MAX NEWYORK N.A N.A 6 MAX NEWYORK N.A N.A
7 BIRLA SUNLIFE 5856 11412 7 BIRLA SUNLIFE 7572 14844

Age 35years Policy Term 20 Years Age 35 years Policy Term 15 Years
PREMIUM PREMIUM
Company SA:1Lac SA:2lac Company SA:1Lac SA:2Lac
1 LIC 6464 12928 1 LIC 8089 16177
2 ICICI PRU 6683 13067 2 ICICI PRU 9160 18019
3 ALLIANZ BAJAJ 6252 12024 3 ALLIANZ BAJAJ 8432 16384
4 TATA-AIG 9219 17938 4 TATA-AIG N.A N.A
5 OM KOTAK 7330 14660 5 OM KOTAK 9010 16700
6 MAX NEWYORK N.A N.A 6 MAX NEWYORK N.A N.A
7 BIRLA SUNLIFE 6000 11700 7 BIRLA SUNLIFE 7668 15036

SA-Sum Assured
GUARANTEES ON INSURANCE & PENSION PRODUCTS

Current as on March 2006


IRRs/ Guarantees
Company Insurance Pension
ALLIANZ BAJAJ 2.14% NA
AVIVA -1.80% FDNA
AMP sanmar FDNA FDNA
Birla Sun Life 0.7-1.5% 1-1.5%
HDFC Standard 0.73% 1.7-1.9%
ICICI Pru 1.7-4.95% 3.06%
ING Vysya 0.70% NA
LIC 4-6% 1.3-2%
MXNYL 3.05% 1.4-1.9%
Metlife 5.5-5.7% NA
OM Kotak -0.04% 2.10%
SBI Life 0.73-4.7% 4%*
Tata AIG -2-4.4% 1.3%

FDNA - Further Data Not Available

# - From April 1, 2003 when 3% guaranteed returns would be provided on


all three fund options.

* - Guarantees for premiums for first seven years.

Pls. note that the above provides a range of returns offered by companies
wherever possible. For others returns have been computed for a particular
term, age and Sum Assured of an Endowment product. Most of the returns
pertain to particular products.

BIBLIOGRAPHY
•Insurance Advisor’s Manuals and Study Material of ICICI Prudential.

•NIS Sparta Ltd. (New Delhi)

•Insurance Watch and other Magazines.

•Economic Times

•Library of College

•www.google.com

•www.icicipru.com

•www.bimaonline.com

•www.moneycontrol.com

•www.licindia.com

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