A
PROJECT REPORT
ON
“A COMPARATIVE STUDY OF ULIP PLANS OFFERED BY
ICICI PRUDENTIAL AND OTHER LIFE INSURANCE
COMPANIES”
Submitted To:
PUNJAB TECHNICAL UNIVERSITY,
JALANDHAR
FOR THE PARTIAL FULFILLMENT OF THE AWARD OF
DEGREE OF MASTER OF BUSINESS ADMINISTRATION
(Session !!"#$!%
UNDER &UIDANCE '( : SUB)ITTED BY*
)+s, Su-.meet -/u+ Di0it 1um/+
Ro22 No, : "!3!45$6!!
SVIET
Cont/7t no, # !3!$6!6486$
S9A)I VIVE1NAND INSTITUTE '( EN&INEERIN& AND
TECHN'L'&Y
PUNJAB TECHNICAL UNIVERSITY,
JALANDHAR
P+e:/7e
MBA is a stepping-stone to the Management carrier and to develop good Managers is
necessary that the theoretical must be supplement with exposure to the real
environment.
Theoretical knowledge just provides the base and its not su!!icient to produce a good
Manager thats why the practical knowledge is needed.
There!ore the "esearch #roject is an essential re$uirement !or the student o! MBA.
This research project not only helps the students to utili%e his skills properly and learn
!ield realities but also provides a chance to the organi%ation to !ind out talent among
the building Managers in the very beginning.
&n accordance with the re$uirement o! MBA course & have done my research project
on the topic ;C')PARATIVE STUDY '( ULIP PLANS '((ERED BY ICICI
PUDENTIAL AND 'THER LI(E INSURANCE C')PANIES< with special
re!erence to &'&'& #rudential.
'erti!icate by the (aculty )uide
&UIDE=S CERTI(ICATE
This is to certi!y that Mr. *Ms. ++++++++++++++++++bearing the "eg. ,o.
++++++++++++ currently undergoing &-th .emester MBA in .wami
-ivekanand &nstitute o! /ngineering and Technology a!!iliated to #unjab
Technical 0niversity1 2alandhar he carried out a project on “A
'3M#A"AT&-/ .T045 3( 06&# #6A,. 3((/"/4 B5 &'&'& #"04/,T&A6
A,4 3T7/" 6&(/ &,.0"A,'/ '3M#A,&/.8 under my guidance and
supervision and the work done by her is original and outcome o! her
sincere e!!orts.
Mrs. .ukhmeet 9aur
4ate: ----------
(#"32/'T )0&4/;
INDE>
I. PREFACE
II. CERTIFICATE
III. EXECUTIVE SUMMARY
IV. LITERATURE REVIEW
S+,no Tit2e
C./?te+#$ INTR'DUCTI'N
? &ntroduction - basics o! insurance
? ,eed o! li!e o! insurance
? "oles o! insurance
? Types o! li!e insurance
C./?te+# INDUSTY PR'(ILE
C./?te+#5 C')PANY PR'(ILE
C./?te+#@ RESEARCH )ETH'D'L'&Y
C./?te+#8 C')PARATIVE STUDY
C./?te+#4 DATA ANALYSIS A INTERPRETATI'NS
C./?te+#6 LI)ITATI'NS
(i% REC'))ENDATI'NS
(ii% C'NCLUSI'N
(iii% BIBLI'&RAPHY
(iB% ANNE>URE
Literature Review
7ow a company does announced a name change especially when the old name was
well known< 7ow does the company explain itsel! to constituents who may have
known the company $uite well in an earlier incarnation but may be struggling to
!igure out what the new organi%ation stands !or< 7ow can the company create a new
image while retaining the strengths o! the old one< And what role might corporate
advertising play in all this< 'orporate advertising can tell a story about a company as
a whole1 large organi%ations may need to use corporate ads to simpli!y their image in
the minds o! key constituents and to show what uni!ies the company1 despite the
geographical spread and variety o! its businesses.
=e can very well understand the concept o! corporate advertising by taking the
example o! &'&'& #rudential communication. =hen 'ompany !irst began operations1
the task was to present the visiting card o! the company to the public at large and
build credibility and stature and to give the consumer the con!idence that >>here is a
company that can be trusted to invest !unds with.>>
This re$uired a corporate campaign - to establish the brand1 build awareness and give
the brand a larger-than-li!e image.
The advertising idea1 which was encapsulated in symbols o! protection !rom the initial
print campaign1 culminated in the corporate !ilm where sindhoor was used as an
endearing and lasting symbol o! protection. 3nce the corporate image and brand
identity were established1 and as the company expanded and its product range grew1
the next phase o! communication was to give the
consumer a rational and tangible reason to buy - !irst o! all insurance and secondly
!rom &'&'& #rudential 6i!e. This was tackled through product-speci!ic advertising1
such as !or &'&'& #ru .mart 9id1 retirement solutions or 6i!eTime.
Key Summery
? 'reate a good citi%en image through consistent ? dedicated e!!ort.
? 'onvey the organi%ations commitment to the concerned publics as well as to
the masses ? eliminate prejudices1 i! any held by opinion leaders in particular
? by the public in general.
? Boost both employee management relation ? employee morale enabling all
? Members o! the internal public to discover a new vitality.
E>ECUTIVE SU))ARY
Tit2e o: t.e ?+oCe7t:
.tudy 06&# in current market scenario* .tudy customer response towards 06&#
'bCe7tiBes:
? =orking o! the unit linked insurance plans
? .wot analysis o! the product
? 'omparative study o! the competition
? .tudy tax planning solutions available in the market
? .tudy asset allocation through insurance plans
? Market inter!ace
Com?/+/tiBe /n/2Dsis done on:
? 6i!e insurance corporation
? 74(' .tan 6i!e
? Birla .un 6i!e
? Bajaj Allian%
Rese/+7. )et.odo2oED:
#rimary data collected by personally visiting these leading insurance players. /g:
6&'1 Max ,ew 5ork 6i!e &nsurance1 Bajaj Alliance1 Birla .unli!e1 74(' .tan li!e.
D/t/ Co22e7tion:
? #rimary data collected through direct intrection with customer.
? .ample si%e @AA people.
? .econdary database !rom di!!erent maga%ines.
? (irst and !oremost1 accumulating in!ormation !rom newspapers 1
2ournals1 Maga%ines1 and company webside.
? .econdly1 taking a sample si%e and doing a market survey by !illing up
$uestionnaires !rom customers to !ind out what di!!erent companies are
o!!ering in the 06&# section and how are they similar*di!!erent !rom &'&'&
#"04/,T&A6 products. Also keeping a track and taking down the
!eedback regarding perception1 attitude1 taste and pre!erences o! the
customer.
? Thirdly1 analy%ing the data collected. 'omparing the 06&# products
o!!ered by other insurance players.
? 'ritical analysis o! consumer perceptionB their choice and pre!erences.
? /ventually1 deciding on how to !amiliari%e 06&# products in the market
and what all sa!eguards need to be taken while approaching the customers.
CHAPTER#$
INTR'DUCTI'N T' INSURANCE
6&(/ &,.0"A,'/ )/,/"A6
Insu+/n7e is / sDstem to /22eBi/te :in/n7i/2 2osses bD t+/ns:e++inE +is- o: 2oss :+om
one entitD to /not.e+,
C&nsurance is basically a sharing device. The losses to assets resulting !rom natural
calamities like !ire1 !lood1 earth$uake1 accidents1 etc. are met out o! the common pool
contributed by large number o! persons who are exposed to similar risks. This
contribution o! many is used to pay the losses su!!ered by un!ortunate !ew. 7owever
the basic principle is that loss should occur as a result o! natural calamities or
unexpected events which are beyond the human control. .econdly insured person
should not make any gains out o! insurance.
&t is natural to think o! insurance o! physical assets such as motor car insurance or !ire
insurance but o!ten we !orget that creator o! all these assets is the human being whose
e!!orts have gone a long way in building up the assets. &n that sense1 human li!e is a
uni$ue income generating assets. 0nlike the physical assets1 which decrease in value
with passage o! time1 the individual becomes more experienced and more matured as
he advances in age. This raises his earning capacity and the purpose o! li!e insurance
is to protect the income in the event o! his premature death. The individual himsel!
also needs !inancial security !or the old age or on his becoming permanently disabled
when his income will stop. &nsurance also has an element o! savings in certain cases.
HoF insu+/n7e Fo+-sG
.uppose there are @AAA persons all aged DE years and healthy lives. They are insured
!or one year against the risk o! death. /ach person is insured !or "s. EA1AAA. &! the
past experience indicated that F out o! @AAA persons1 at this age are expected to die
during the year1 expected amount o! death claim to be paid to the !amily o! !our
persons would come to "s. G1AA1AAA. The contribution to be paid by each o! the @AAA
persons will come to "s. GAA per year. Thus1 all the @AAA persons share loss caused to
the F un!ortunate !amilies. HHI persons who survived till one year have not lost
anything as they secured peace o! mind and a !eeling o! security o! their !amily. =hile
insurance cannot prevent accidents or premature death1 it can help protect the !amily
o! the decreased against the loss o! income caused by the death o! the main
breadwinner. &n return !or speci!ied payments1 insurance will provide protection
against the incidence o! an uncertain event- such as premature death. The business o!
insurance company called insurer is to bring together persons who are exposed to
similar risks1 collect contribution Jpremium; !rom them on some e$uitable basis and
pay the losses Jclaims; to the un!ortunate !ew who su!!er.
C2/ssi:i7/tion o: Insu+/n7e
&nsurance business can be divided into two broad categories1 li!e and non-li!e. 6i!e
insurance is concerned with making provision !or a speci!ic event happing to the
individual1 such as death whereas non li!e Jor general insurance; is more commonly
concerned with the provision !or a speci!ic event which a!!ects a property1 such as
!ire1 !lood1 the!t etc. &n this course we will only cover li!e insurance. .o1 let us now
move on to the de!inition o! li!e insurance.
De:inition o: Li:e Insu+/n7e
According to the 0... 6i!e 3!!ice Management Association &nc. J63MA;1 li!e
insurance is de!ined as !ollows: C6i!e insurance provides a sum o! money i! the person
who is insured dies whilst the policy is in e!!ect8.
NEED ('R LI(E INSURANCE
"isks and uncertainties are part o! li!e>s great adventure -- accident1 illness1 the!t1
natural disaster - they>re all built into the workings o! the 0niverse1 waiting to happen.
&nsurance then is man>s answer to the vagaries o! li!e. &! you cannot beat man-made
and natural calamities1 well1 at least be prepared !or them and their a!termath.
&nsurance is a 7ont+/7t between two parties - the insurer Jthe insurance company; and
the insured Jthe person or entity seeking the cover; - wherein the insurer agrees to pay
the insured !or !inancial losses arising out o! any un!oreseen events in return !or a
regular payment o! K?+emiumK.
These un!oreseen events are de!ined as K+is-K and that is why insurance is called a
risk cover. 7ence1 insurance is essentially the means to !inancially compensate !or
losses that li!e throws at people - corporate and otherwise.
The principle o! insurance works on the concept o! a large number o! people exposed
to a similar risk making a contribution to a common !und. Those who su!!er losses
due to the occurrence o! these events are compensated !or them !rom this !und.
R'LE '( LI(E INSURANCE
Life Insurance As An Investment !
&nsurance is an attractive option !or investment. =hile most people recogni%e the risk
hedging and tax saving potential o! insurance1 many are not aware o! its advantages as
an investment option as well. &nsurance products yield more compared to regular
investment options1 and this is besides the added incentives o!!ered by insurers.
5ou cannot compare an insurance product with other investment schemes !or the
simple reason that it o!!ers !inancial protection !rom risks1 something that is missing
in non-insurance products. &n !act1 the premium you pay !or an insurance policy is an
investment against risk. Thus1 be!ore comparing with other schemes1 you must accept
that a part o! the total amount invested in li!e insurance goes towards providing !or
the risk cover1 while the rest is used !or savings.
&n li!e insurance1 unlike non-li!e products1 you get maturity bene!its on survival at the
end o! the term. &n other words1 i! you take a li!e insurance policy !or GA years and
survive the term1 the amount invested as premium in the policy will come back to you
with added returns. &n the un!ortunate event o! death within the tenure o! the policy1
the !amily o! the deceased will receive the sum assured.
,ow1 let us compare insurance as an investment options. &! you invest "s @A1AAA in
##(1 your money grows to "s @A1HEA at H.E per cent interest over a year. But in this
case1 the access to your !unds will be limited. 3ne can withdraw EA per cent o! the
initial deposit only a!ter F years.
The same amount o! "s @A1AAA can give you an insurance cover o! up to
approximately "s E-@G lakh Jdepending upon the plan1 age and medical condition o!
the li!e insured1 etc; and this amount can become immediately available to the
nominee o! the policyholder on death. Thus insurance is a uni$ue investment avenue
that delivers sound returns in addition to protection.
TYPES '( LI(E INSURANCE PLANS
Li:e Insu+/n7e P2/ns:
0nder 6i!e insurance plans1 &'&'& #rudential o!!ers plans under the !ollowing major
need categories:
/ducation &nsurance #lans
=ealth 'reation #lans
#remium )uarantee plans
#rotection #lans
Education Insurance Plans
3ne o! your most important responsibilities as a parent is to ensure that your child
gets the best possible education that can be provided.
&'&'& #rudential o!!ers a wide port!olio o! education insurance plans that are designed
to provide peace o! mind to you1 as a parent1 that your child>s education will be
secure. These plans ensure that money is made available at the crucial junctures in a
child>s education - 'lass L1 'lass L&&1 graduation and post-graduation - to !und
crucial commitments !or the child>s !uture.
&mportantly1 education insurance plans ensure that in the un!ortunate event o! the
death o! a parent1 the child>s education continues unhampered.
0nder the education insurance plans plat!orm1 &'&'& #rudential brings the !ollowing
products to you. #lease click on the product name to know more about the plans.
Wealth Creation Plans
=ealth 'reation #lans give the customer the dual bene!it o! protection along with the
potentially higher returns o! market-linked instruments. The most important bene!it o!
#lan ,ame
.mart9id ,ew 0nit-linked
"egular #remium
.mart9id ,ew 0nit-linked
.ingle #remium
.mart9id "egular #remium
#lan Type
0nit 6inked
0nit 6inked
Traditional
06&#s is the !lexibility they give the customer in choosing the premium amount and
also choosing the underlying !und in which this money is to be invested. =ealth
creation plans also o!!er the customer more li$uidity options as compared to
traditional plans. As such1 06&#s are ideal !or customers who want the protection o! a
li!e cover to be allied to the returns o! market linked instrument M giving them an
unmatched combination o! bene!its.
0nder the wealth creation plat!orm1 &'&'& #rudential brings the !ollowing products to
you. #lease click on the product name to know more about the plans.
#lan ,ame
LifeTime Super
LifeLink Super
PremierLife Gold
LifeTime Plus
#lan Type
Unit Linked
Unit Linked
Unit Linked
Unit Linked
Premium Guarantee Plans
The latest addition to the li!e insurance product port!olio o! &'&'& #rudential is the
#remium )uarantee plan - &nvest.hield 6i!e ,ew. #remium )uarantee plans are the
ideal insurance-cum-investment option !or customers who want to enjoy the
potentially higher returns o! a market linked instrument1 but without taking any
market risk.
0nder the #remium )uarantee #lans plat!orm1 &'&'& #rudential brings to you the
!ollowing products:
#lan ,ame
InvestShield Life New
InvestShield CashBak
#lan Type
Unit Linked
Unit Linked
Protection Plans
The sole objective o! these plans1 as their name indicates1 is to serve the protection
needs o! the customer and by doing so1 sa!eguard ones !amily !rom the !inancial
implications o! un!ortunate circumstances than one cannot !oresee.
0nder the #rotection #lans plat!orm1 &'&'& #rudential brings to you the !ollowing
products:
THE INSURANCE RE&ULAT'RY AND DEVEL'P)ENT
AUTH'RITY (IRDA%
"e!orms in the &nsurance sector were initiated with the passage o! the &"4A Bill in
#arliament in 4ecember @HHH. The &"4A since its incorporation as a statutory body in
#lan ,ame
LifeGuard
Save'n'Protet
CashBak
!ome "ssure
#lan Type
Traditional
Traditional
Traditional
Traditional
April GAAA has !astidiously stuck to its schedule o! !raming regulations and registering
the private sector insurance companies.
The other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the li!e insurance companies was the launch o! the
&"4As online service !or issue and renewal o! licenses to agents.
The approval o! institutions !or imparting training to agents has also ensured that the
insurance companies would have a trained work!orce o! insurance agents in place to
sell their products1 which are expected to be introduced by early next year. .ince
being set up as an independent statutory body the &"4A has put in a !ramework o!
globally compatible regulations. &n the private sector @G li!e insurance and I general
insurance companies have been registered.
9HY PRIVATE INSURANCEG
• All the private companies have a lock in period o! D yrs hence no disinvestments
possible.
• Minimum net worth o! EAA 'r re$uired !or ac$uiring license with a minimum paid
up capital o! @AA 'r in their insurance venture.
• 'ommitment to increase the paid up capital mani!old in next !ive years.
• "e insurance !or all its policies worth more than E lakhs. "einsurance partners1
best and the largest in the world M general cologne and .wiss reinsurance.
• Audit o! accounts by at least G independent approved auditors each year.
• #roducts and pricing are cleared by &"4A1 which looks into the !inancial visibility
o! the product and the !inancial implication.
• &"4A is now proposing a #vt. #olicy #rotection !und.
• (unds to be invested in only regulated and controlled areas with close to
NAObeing pumped into only gilts thereby assuring sa!ety o! !unds.
CHAPTER#
INDUSTRY PR'(ILE
Background
&n @H@G1 the &ndian li!e insurance companies Act was passed . This was the !irst
comprehensive legislation in &ndia to regulate the business o! insurance. it had been
observed that the provisions o! &ndian 'ompanys Act did not meet the purpose. A
!urther legislation was passed in @HGN1 But a comprehensive legislation was passed in
@HDN. The amendments in the act were made in @HEI when insurance was nationali%ed
and 6&' and )&' were !ormed.
6i!e insurance business was nationali%ed with e!!ect !rom @H 2anuary @HEI
and GEI companies were merged. &nsurance Act was !urther amended in @HHH and
&"4A was !ormed in view o! the circumstances arising out o! opening up o! insurance
industry in GAAA.&"4A authority to protect the interest o! the holders o! insurance
policies1 to regulate 1 promote and ensure the working o! all companies.
As we enter into the new millennium1 economies o! the world over are getting
rede!ined and remodeled with the new mindsets1 new technologies1 new riles and new
directions. (inancial sector re!orms received top priority ever since the )ovt. o! &ndia
initiated the process o! economic liberali%ation. These re!orms are extending the
hori%ons o! the !inancial services sector and have been trans!orming our capital
markets 1 banking and !inancial services industries.
&n the last !our decades 1 a!ter nationali%ation o! the insurance industry 1
certain socio-economic objectives were achieved through public ownership o! the
insurance business. 5et1 market oriented dynamism was missing as evidenced by the
lack o!
product innovations1 high premium rates and limited use o! in!ormation
technology.
The insurance sector re!orms have encouraged Blue-Bloods o! &ndian corporate sector
TATA1&'&'&174('1B&"6A1.B&1"/6&A,'/193TA9 etc to tie up with worlds
largest insurance majors to capture slice o! the countrys potential insurance market.
This has brought abu%% activities in insurance business. ,ew players are wooing the
customer with promises o! better services and customi%ed products. The 6&' and )&'
are countering the competition on the strength o! their track records1 distribution
networks and so on.
This new scenario will witness !inancially sound and experienced players
trans!orming the industry with best products in service and product development 1
operational e!!iciency1 marketing capability1 service plus and tech-savvy orientation.
As a result1 the insurance business can become global with e-business applications.
&t is awkward business playing value !igures on peoples lives. &t is almost as
awkward as selling the likelihood o! an event people do not want crossing their minds
. in &ndia1 it is rather a shrub. (or this reason alone li!e insurance is no ordinary
market. 0nder the pressure o! competitors di!!erentiate their o!!erings1 insurers no
longer sell li!e insurance as a product that meets a basic need 1 many o! them sell
though the appeal o! a wide variety o! add on bene!its ranging !rom tax saving to
investment return1 sometimes pitying more emphasis on these basic bene!its.
This assumes signi!icance because &ndia is witnessing !oreign
competition in this sector a!ter a long monopoly period.
There is consensus on success becoming a !unction o! market strategy.
.o !ar the market has been shaped by 6&' . it is only recently that private
insurers with PF:GI joint ventures between &ndian and !oreign companies have
been !ormed under the watch o! &"4A. &'&'& prudential1 74(' slandered li!e
and Max ,ew 5ork 6i!e were !irst o!! the block1 !ollowed by 9otak
Mahindra1 "oyal .undram1TATA Aig1Birla .unli!e1.B& 6i!e and &,) -yasa
which were started later.
.udden burst o! competition itsel! is a uni$ue occurrence. The &ndian
market distinguishes itsel! in other ways too1 most notably in the areas o!
consumer perception and investment option. .o it is worth which will the
market move and what could be the winning strategies. Basic premise is clear
that “2i:e insu+/n7e is / s?e7i/2iHed business8.
LI(E INSURERS
@. BA2A2 A66&A,Q 6&(/ &,.0"A,'/ '3.6T4.
G. B&"6A .0,6&(/ &,.0"A,'/ '3. 6T4.
D. 74(' .TA,4A"4 6&(/ &,.0"A,'/ '3. 6T4.
F. &'&'& #"04/,T&A6 6&(/ &,.0"A,'/ '3. 6T4.
E. &,) -5.5A 6&(/ &,.0"A,'/ '3.#-T.6T4.
I. 6&(/ &,.0"A,'/ '3"#3"AT&3, 3( &,4&A.
P. MAL ,/=53"9 6&(/ &,.0"A,'/ '3. 6T4.
N. M/T6&(/ &,4&A &,.0"A,'/ '3. #-T.6T4.
H. 93TA9 MA7&,4"A 364 M0T0A6 6&(/ &,.0"A,'/ '3.
6T4.
@A. .B& 6&(/ &,.0"A,'/ '3.6T4.
@@. TATA A&) 6&(/ &,.0"A,'/ '3.6T4.
@G. A-&-A 6&(/ &,.0"A,'/ '3. 6T4.
@D. .A7A"A 6&(/ &,.0"A,'/ '3. 6T4.
Li:e Insu+/n7e Com?/nies
ICICI P+udenti/2 Li:e Insu+/n7e Com?/nD Limited
&'&'& #rudential 6i!e &nsurance 'ompany 6imited was incorporated on 2uly
GA1GAAA.The authori%ed capital o! the company is "s GDAA million and the paid up
capital is "s @EAA million. The 'ompany is joint o! &'&'& JPFO; and #rudential
plc 09 JGIO;
The company was granted certi!icate o! registration !or carrying out li!e insurance
business1 by the insurance regulatory and development Authority on ,ovember
GF1GAAA.it commenced commercial operations on 4ecember @H1 GAAA1becoming
one o! the !irst !ew private sector players to enter the liberali%ed arena. &'&'&
#rudential collected "s.@ENF corers as their premium during GAAF-AE ? the
market share o! &'&'& pru. as per their premium is E.IDO as a whole but in the pvt
.co .&'&'& hold FAO o! market share.
IN& VYSYA LI(E INSURANCE C')PANY PVT, LTD,
&,) -ysya 6i!e &nsurance is a joint venture between three
pioneers1 &,) &nsurance -ysya Bank.
IN& &+ou?: 3ver the last @EA years1 &,) )roup has grown to become one o! the
largest li!e insurance organi%ations in the world. Today it touches the lives o! over
EA millions people across IE countries. &t o!!ers a range o! !inancial services
including insurance1 pensions1 banking and asset management. &n the year
GAAA1total assets o! the group stood at over &," GN1FGAAA corers.
1'TA1 )AHINDRA LI(E INSURANCE C')PANY LTD,
9otak Mahindra li!e &nsurance 'ompany 6imited is a joint
venture between 9otak Mahindra (inance 6td and 3ld Mutual.
1ot/- )/.ind+/ (in/n7e Ltd,
9otak Mahindra is one o! the &ndias leading !inancial
institutions1 o!!ering complete !inancial solution that encompasses every sphere o!
li!e. (rom Banking1 to stock Broking1 to Mutual (unds1 to 6i!e &nsurance1 to
&nvestment Banking1 the company caters to the !inancial needs o! individuals and
corporates.
'2d )utu/2
3ld Mutual1 a company with over @EP years o! experience in li!e
insurance business1 has the largest !inancial services business in .outh A!rica1
through its li!e assurance1 asset management1 banking and general insurance
operations. Being listed in 6ondon .tock /xchange and included in (T./ @AA list
o! companies1 old Mutuals assets under management are worth RGAN billion.
T/t/ AI& Li:e Insu+/n7e Com?/nD:
Tata A&) )eneral &nsurance 'ompany 6td and Tata A&) 6i!e &nsurance 'ompany
6td Jcollectively “Tata A&)8; are joint venture companies between the Tata group
&ndias most trusted industrial house and American &nternational grouping JA&);1 the
leading 0.. based international insurance and !inancial services organi%ation.
Both promoters have a deep and abiding interest in &ndias &nsurance sector. #rior to
nationali%ation1 the Tantas pioneered private insurance in &ndia when .ir 4orab Tata
set
up new &ndia assurance in @[email protected] @HPD1when )eneral &nsurance was nationali%ed
the Tata company had a global presence with EI overseas o!!ices. Aig too has always
considered the &ndian insurance sector to be o! signi!icance. The A&) companies
entered &ndia in @HEF and had o!!ices in several &ndian cities prior to nationali%ation.
HD(C ISt/nd/+d Li:e:
HD(C .tandard 6i!e &nsurance company is a joint venture between &ndias
largest housing !inance provider1 74(' and /uropes largest mutual li!e assurance
company The .tandard 6i!e Assurance 'ompany J09;. 74(' .tandard 6i!e
&nsurance 'ompany 6imited is the !irst private sector li!e insurance company to be
granted a license.
.tandard 6i!e1 091 !ound in @NGE. The 09 insurance industry !or @PE years
by combining sound !inancial judgment with integrity and reliability. &t is the largest
mutual li!e company in /urope and has total assets o! "s.E1EA1AAA crore sit is one o!
the very !ew insurance companies in the world to have CAAA rating !rom two o! the
leading international credit rating agencies1 Moody and .tandard and #oors. .tandard
6i!e was recently voted Ccompany o! the decade in 09 by the independent Brokers
called &(As.
LI(E INSURANCE C'RP'RATI'N '( INDIA (LIC%
The 6i!e &nsurance 'orporation J6&'; was established about FH Jin@HEI;
years ago with a view to provide an insurance cover against various risks in li!e .A
monolith then1 the corporation1 enjoyed a monopoly status and become
synonymous with li!e insurance.&ts main asset is its sta!! strength o! @.GF lakhs
employees and GAFN branches and over six-lakh agency !orce. 6&' has hundred
divisional o!!ices and has established extensive training !acilities at all levels .At
the apex1 is the Management 4evelopment &nstitute1 .even Qonal Training centers
and DE .ales Training 'enters.
At the industry level1 along with the )overnment and )&'1 it has helped established
the ,ational &nsurance Academy. &t presently transacts individual li!e insurance
businesses1 group insurance businesses1 social security schemes and pensions1
grants housing loans through its subsidiaryB and markets saving and investment
products through its mutual !und. &t payo!! about "s IAAA crore annually to E.I
million policyholders. Market share o! 6&' which is NG.DO.By the 6&' @.AH crores
policies has been sold that was in the GAAF-AE ? the total premium that are
collected by 6&' in GAAF-AE was "s.HAAP crores.
ALLIANJ BAJAJ LI(E INSURANCE C')PANY
Allian% A) with over @@A years o! experience in over PA countries and Bajaj
Auto1 trusted !or over EE years in the &ndian market 1together are committed to
o!!ering !inancial solutions.
'haracteri%ed by global presence with a local !ocus and driven by
customer orientation to establish high earnings potential and !inancial strength1
Allian% Bajaj 6i!e &nsurance 'o 6td was incorporated on @G
th
March [email protected]
company received the insurance regulatory and development Authority J&"4A;
'erti!icate o! "egistration on D
rd
August GAA@ to conduct 6i!e &nsurance business in
&ndia. The Market share o! Bajaj Allian% in GAAD-AF was .HEO which has been
increases in GAAF-AE and it is know G.ADO which depicts the !inancial position o!
the co.
CHAPTER#5
C')PANY PR'(ILE
&ndias ,umber 3ne private li!e insurer1 &'&'& #rudential 6i!e &nsurance 'ompany is a joint
venture between &'&'& Bank-one o! &ndias !oremost !inancial services companies-and
#rudential plc- a leading international !inancial services group head$uartered in the 0nited
9ingdom. Total capital in!usion stands at "s. GA.IA billion1 with &'&'& Bank holding a stake
o! PFO and #rudential plc holding GIO.
=e began our operations in 4ecember GAAA a!ter receiving approval !rom &nsurance
"egulatory 4evelopment Authority J&"4A;. Today1 our nation-wide team comprises o! over
ENA o!!ices1 over GDF1AAA advisorsB and GG bancassurance partners.
&'&'& #rudential was the !irst li!e insurer in &ndia to receive a ,ational &nsurer (inancial
.trength rating o! AAA J&nd; !rom (itch ratings. (or three years in a row1 &'&'& #rudential has
been voted as &ndias Most Trusted #rivate 6i!e &nsurer1 by The /conomic Times M A'
,ielsen 3") Marg survey o! CMost Trusted Brands. As we grow our distribution1 product
range and customer base1 we continue to tirelessly uphold our commitment to deliver world-
class !inancial solutions to customers all over &ndia.
The &'&'& #rudential edge comes !rom our commitment to our customers1 in all that we do M
be it product development1 distribution1 the sales process or servicing. 7eres a peek into what
makes us leaders.
Vision Values
'u+ Bision:
To make &'&'& #rudential the dominant 6i!e and #ensions player built on trust by world-class
people and service.
This we hope to achieve by:
0nderstanding the needs o: 7ustome+s and o!!ering them superior products and
service
6everaging te7.no2oED to service customers $uickly1 e!!iciently and conveniently
4eveloping and implementing superior +is- m/n/Eement /nd inBestment
st+/teEies to o!!er sustainable and stable returns to our policyholders
#roviding an enabling environment to !oster growth and learning !or our em?2oDees
And above all1 bui2dinE t+/ns?/+en7D in all our dealings.
The success o! the company will be !ounded in its un!linching commitment to E core values M
&ntegrity1 'ustomer (irst1 Boundary less1 3wnership and #assion. /ach o! the values describe
what the company stands !or1 the $ualities o! our people and the way we work.
=e do believe that we are on the threshold o! an exciting new opportunity1 where we can play
a signi!icant role in rede!ining and reshaping the sector. )iven the $uality o! our parentage
and the commitment o! our team1 there are no limits to our growth.
'u+ B/2ues :
/very member o! the &'&'& #rudential team is committed to E core values: &ntegrity1
'ustomer (irst1 Boundary less1 3wnership1 and #assion. These values shine !orth in all we do1
and have become the keystones o! our success.
@. 3ur products have been developed a!ter a clear and thorough understanding o! customers
needs. &t is this research that helps us develop /ducation plans that o!!er the ideal way to truly
guarantee your childs education1 "etirement solutions that are a hedge against in!lation and
yet promise a !ixed income a!ter you retire1 or 7ealth insurance that arms you with the !unds
you might need to recover !rom a dreaded disease.
G. 7aving the right products is the !irst step1 but its e$ually important to ensure that our
customers can access them easily and $uickly. To this end1 &'&'& #rudential has an advisor
base across the length and breadth o! the country1 and also partners with leading banks1
corporate agents and brokers to distribute our products
D. "obust risk management and underwriting practices !orm the core o! our business. =ith
clear guidelines in place1 we ensure e$uitable costing o! risks1 and thereby ensure a smooth
and hassle-!ree claims process.
F. /ntrusted with helping our customers meet their long-term goals1 we adopt an investment
philosophy that aims to achieve risk adjusted returns over the long-term.
E. 6ast but de!initely not the least1 our @I1AAA plus strong team is given the opportunity to
learn and grow1 every day in a multitude o! ways. =e believe this keeps them engaged and
enthusiastic1 so that they can deliver on our promise to cover you1 at every step in li!e.
Promoters
ICICI B/n-
ICICI B/n- (NYSE:IBN% is &ndias second largest bank and largest private sector bank with
over EA years presence in !inancial services and with assets o! over "s DFFI.EN bn J0.4 PH
billion; as on March D@1 GAAP. The Bank o!!ers a wide range o! banking products and
!inancial services to corporate and retail customers through a variety o! delivery channels and
through its D@peciali%ed subsidiaries in the areas o! investment banking1 li!e and non-li!e
insurance1 private e$uity and asset management. &'&'& Bank is a leading player in the retail
banking market and services its large customer base through a network o! over HEA branches
and extension counters1 DDAA ATMs1 call centers and internet banking Jwww.icicibank.com; to
ensure that customers have access to its services at all times.
P+udenti/2 P27
/stablished in 6ondon in @NFN1 #rudential plc1 through its businesses in the 09 and /urope1
the 0. and Asia1 provides retail !inancial services products and services to more than GA
million customers1 policyholder and unit holders and manages over SGE@ billion o! !unds
worldwide Jas o! D@ 4ecember GAAI;. &n Asia1 #rudential is the leading /uropean li!e
insurance company with li!e operations in 'hina1 7ong 9ong1 &ndia1 &ndonesia1 2apan1 9orea1
Malaysia1 the #hilippines1 .ingapore1 Taiwan1 Thailand1 -ietnam. #rudential is the second
largest retail !und manager !or Asian sourced assets ex-2apan as at 2une GAAI. &ts !und
management business has expanded into a total o! ten markets : 'hina1 7ong 9ong1 &ndia1
2apan1 9orea1 Malaysia1 .ingapore1 Taiwan1 -ietnam and 0nited Arab /mirates.
!act "heet
THE Com?/nD
&'&'& #rudential 6i!e &nsurance 'ompany is a joint venture between &'&'& Bank1
a premier !inancial powerhouse1 and #rudential plc1 a leading international
!inancial services group head$uartered in the 0nited 9ingdom. &'&'& #rudential
was amongst the
!irst private sector insurance companies to begin operations in 4ecember GAAA
a!ter receiving approval !rom &nsurance "egulatory 4evelopment Authority
J&"4A;.
&'&'& #rudential>s capital stands at "s. GA.IA billion with &'&'& Bank and
#rudential plc holding PFO and GIO stake respectively. As o! March D@1 GAAP1 the
company garnered "s. F1NFD crore o! weighted retail T group new business
premiums and wrote over @.HI million retail policies. The company has assets held
to the tune o! over "s. @E1AAA crore.
&'&'& #rudential is also the only private li!e insurer in &ndia to receive a ,ational
&nsurer (inancial .trength rating o! AAA J&nd; !rom (itch ratings. The AAA J&nd;
rating is the highest rating1 and is a clear assurance o! &'&'& #rudential>s ability to
meet its obligations to customers at the time o! maturity or claims.
(or the past six years1 &'&'& #rudential has retained its position as the ,o. @
private li!e insurer in the country1 with a wide range o! !lexible products that meet
the needs o! the &ndian customer at every step in li!e. To know more about the
company1 please visit
Dist+ibution
&'&'& #rudential has one o! the largest distribution networks amongst private li!e
insurers in &ndia. As o! March D@1 GAAP the company has over ENA o!!ices across
the country and over GDF1AAA advisors.
The company has over GG bancassurnace partners1 having tie-ups with &'&'& Bank1
(ederal Bank1 .outh &ndian Bank1 Bank o! &ndia1 6ord 9rishna Bank1 &dukki
4istrict 'o-operative Bank1 2algaon #eoples 'o-operative Bank1 .hamrao -ithal
'o-op Bank1 /rnakulam Bank1 H Bank o! &ndia sponsored "egional "ural Banks
J""Bs;1 .angli 0rban 'o-operative Bank1 Baramati 'o-operative Bank1 Ballia
9shetriya )ramin Bank1 The 7aryana .tate 'o-operative Bank.
(2e0ib2e Ride+ '?tions
&'&'& #ru 6i!e o!!ers !lexible riders1 which can be added to the basic policy at a
marginal cost1 depending on the speci!ic needs o! the customer.
@.
Accident & disai!it" ene#t$ If death ours as the result of
an aident durin# the term of the poli$% the &ene'iar$
reeives an additional amount e(ual to the rider sum assured
under the poli$. If an aident results in total and permanent
disa&ilit$% )*+ of rider sum assured will &e paid eah $ear%
from the end of the )st $ear after the disa&ilit$ date for the
remainder of the &ase poli$ term or )* $ears% whihever is
lesser. If the death ours while travelin# in an authori,ed mass
transport vehile% the &ene'iar$ will &e entitled to twie the
sum assured as additional &ene't.
G.
Critica! I!!ness %ene#t$ protets the insured a#ainst 'nanial
loss in the event of - spei'ed ritial illnesses. Bene'ts are
pa$a&le to the insured for medial e.penses prior to death.
D.
Waiver &' Pre(iu($ In ase of total and permanent disa&ilit$
due to an aident% the future premiums ontinue to &e paid &$
the ompan$ till the time of maturit$. This rider is availa&le
with LifeTime Super% LifeTime Super Pension and CashPlus.
About t.e P+omote+s
ICICI B/n- J,5./:&B,; is &ndia>s second largest bank and largest private sector
bank with over EA years presence in !inancial services and with assets o! over "s
DFFI.EN bn J0.4 PH billion; as on March D@1 GAAP. The Bank o!!ers a wide range
o! banking products and !inancial services to corporate and retail customers
through a variety o! delivery channels and through its specialised subsidiaries in
the areas o! investment banking1 li!e and non-li!e insurance1 private e$uity and
asset management. &'&'& Bank is a leading player in the retail banking market and
services its large customer base through a network o! over HEA branches and
extension counters1 DDAA ATMs1 call centers and internet banking
www.icicipruli!e.com to ensure that customers have access to its services at all
times.
/stablished in 6ondon in @NFN1 #rudential plc1 through its businesses in the 09
and /urope1 the 0. and Asia1 provides retail !inancial services products and
services to more than GA million customers1 policyholder and unit holders and
manages over SGE@ billion o! !unds worldwide Jas o! D@ 4ecember GAAI;. &n Asia1
#rudential is the leading
/uropean li!e insurance company with li!e operations in 'hina1 7ong 9ong1 &ndia1
&ndonesia1 2apan1 9orea1 Malaysia1 the #hilippines1 .ingapore1 Taiwan1 Thailand1
-ietnam. #rudential is the second largest retail !und manager !or Asian sourced
assets ex-2apan as at 2une GAAI. &ts !und management business has expanded into a
total o! ten markets : 'hina1 7ong 9ong1 &ndia1 2apan1 9orea1 Malaysia1
.ingapore1 Taiwan1 -ietnam and 0nited Arab /mirates.
The &'&'& #rudential 6i!e &nsurance 'ompany 6imited Management team comprises
reputed people !rom the !inance industry both !rom &ndia and abroad.
)s, S.i-./ S./+m/, Managing 4irector ? '/3
)+, N, S, 1/nn/n, /xecutive 4irector
)+, B./+E/B D/sEu?t/, /xecutive 4irector
)s, Anit/ P/i, /-# M 'ustomer .ervice ? Technology
)+, AHim )it./ni, 'hie! Actuary
)+, Puneet N/nd/, 'hie! &nvestments 3!!icer
)+, Bin/D/- Dutt/, 'hie! M .ales and distribution
Mr. ,. .. 9annan
/xecutive 4irector
&'&'& #rudential
6i!e &nsurance 'ompany 6imited
,. .. 9annan joined &'&'& #rudential 6i!e &nsurance 'ompany 6td as /xecutive 4irector
in August GAAE1 where he has overall responsibility !or sales1 marketing1 investments1
group business and business intelligence. #rior to joining &'&'& #rudential1 9annan was
the 'hie! (inancial 3!!icer and Treasurer o! &'&'& Bank 6imited where he was
responsible !or investor relations and !or the !inance1 per!ormance management1 accounts1
taxation1 risk management1 secretarial and credit middle o!!ice !unctions. The treasury
operations o! &'&'& Bank include Balance .heet Management and Asset and 6iability
Management. &'&'& Bank is the second largest bank in &ndia with an asset base o! about
0.R EE billion. The bank is listed on &ndian national stock exchanges and the ,ew 5ork
stock exchange. 9annan joined &'&'& group in @HH@ as a project o!!icer. 4uring his
tenure at &'&'& group1 he has handled project !inance operations1 in!rastructure !inancing1
structured !inance and treasury operations. #rior to his current assignment1 he has headed
the Telecom ? Transportation group and .tructured (inance group o! the bank.9annan is
a postgraduate in management !rom the &ndian &nstitute o! Management1 Bangalore with a
gold medal !or best all-round per!ormance. 7e is also a 'hartered (inancial Analyst !rom
the &nstitute o! 'hartered (inancial Analysts o! &ndia and an 7onours graduate in
Mechanical /ngineering. 7is work experience includes D years o! industrial experience
with a large engineering group in &ndia.
S9'T ANALYSIS '( ICICI PRUDENTIAL
STREN&THS
• &'&'& #"04/,T&A6 is the largest private player in the insurance industry in
&ndia1 with a market share o! around DIO amongst the private players.
• &'&'& #"04/,T&A6 has deposited a paid up capital o! "s. HGE crores with
&"4A as a caution deposit1 the highest amongst all the li!e insurance
companies in &ndia whereas 6&' has deposited only IA crores so !ar.
• &'&'& #"04/,T&A6 is the !irst li!e insurance company to o!!er /'. debit
!acility.
• &'&'& #"04/,T&A6 is the !irst company to introduce unit linked li!e
insurance and pension products. #resently the maximum numbers o! ranges
are under 06&# like li!e insurance1 investment as well as pension plans.
• &ts -enture !unds management co. 6td is &ndias largest venture capital
company.
• #"340'T.:
? (lexibility to switch your !und value at your own discretion F times a
year
-i% Maximiser1 #rotector1 Balancer1 #reserver.
? )reater transparency- policyholder knows what is happening to his
money and where the company has invested the money.
? 6i$uidity option: you can make partial or complete withdrawals
anytime a!ter D years.
? 6i!e insurance plans are eligible !or deduction under .ec. NA'.
? The proceeds or withdrawals o! li!e insurance policies are exempt
under .ec @AJ@A4;1 subject to norms prescribed in that section.
? "iders are provided to give the policyholder the additional protection
at marginal cost- Accident and 4isability rider1 'ritical &llness "ider1
Accidental bene!it rider.
? 6oan against the policy
: A!ter the policy has ac$uired a surrender value
one can avail loan against the policy.
9EA1NESSES
• &ndustry in nascent stage.
• "ural areas still not covered.
• ,ot very well known among the &ndian population.
• 6ack o! credibility in the public because &'&'& being a private player.
• #remiums are high as compared to its competitors.
• -ery !ew branches in the country.
• #"340'T.:
? The policy doesnt have the surrender option be!ore the D
rd
year.
? #lan do not o!!er any guarantee or assured return
? The product pro!ile is not very comprehensive.
? Mortality1 management and administrative charges are sky-scraping as
compared to its competitors.
'PP'RTUNITIES
• 6iberali%ation o! &ndian economy.
• As the industry is growing the whole market is virgin.
• The whole private sector is open to be tapped even though the competition is
!ierce !rom government owned insurance companies.
• &ts a volume business that is even i! the company has !ew good corporates
the turnover ceases to increase by mani!old.
• #"340'T.:
? #reserver !und looks good due to com!ortable li$uidity in the economy
and there is little chance o! any hike in short-term rates by "B&.
? (inance minister unveiled a budget-!avoring consumer spending1
boosting demand and there!ore higher economic growth
THREATS
• The )ovt. players will become aggressive thus growth is going to be tough.
• /ntry o! other new players is not ruled out
• Apprehension towards &'&'& #"04/,T&A6 being a private li!e insurance
company.
• =e expect the industry to rationali%e in !uture that is mergers and ac$uisitions
will happen which will impact the industry and &'&'& #"04/,T&A6
!ortunes.
• #"340'T.:
? #ast per!ormance o! these plans is not indicative o! the !uture per!ormance
o! the plan
? The sum invested in the !unds is subject to market risks and there can be
no assurance that the objective o! the plans will be achieved.
? All bene!its payable under the policy are subject to the tax laws and other
!inancial enactment1 as they exist !rom time to time
)EANIN& '( ULIP
A policy1 which provides !or li!e insurance where the policy value at any time varies
according to the value o! the underlying assets at the time. 06&# is li!e insurance
solution that provides !or the bene!its o! protection and !lexibility in investment. The
investment is denoted as units and is represented by the value that it has attained
called as ,et Asset -alue J,A-;.
A ULIP st+u7tu+e 2oo-s 2i-e /s
22oFs:
0nit linked
insurance
plans
0nits in
!unds
0nderlying
investment
6ess charge
&nvestment represented as
units
6i!e cover
'ontribution
(EATURES '( ULIP
06&# distinguishes itsel! through the multiple bene!its that it provides to the
consumer. The plan is a one-stop solution providing:
U 6i!e protection
U &nvestment and .avings
U (lexibility
- Adjustable 6i!e 'over
- &nvestment 3ptions
U Transparency
U 3ptions to take additional cover against
- 4eath due to accident
- 4isability
- 'ritical &llness
- .urgeries
U 6i$uidity
U Tax planning
The two strong arguments in !avour o! unit-linked plans are:
• (irstly1 the investor knows exactly what is happening to his money
• .econdly it allows the investor to choose the assets into which he wants his
!unds invested.
An investor in a 06&# knows how much he is paying towards mortality1 management
and administration charges. 7e also knows where the insurance company has invested
his money.
The investor gets exactly the same returns that the !und earns but he also bears the
investment risk. The transparency makes the product more competitive. .o i! you are
willing to bear the investment risks in order to generate a higher return on your
retirement !unds 06&#s are !or you. Traditional KFit. ?+o:its= policies too invest in
the market and
generate the same returns prevailing in the market. But here the insurance company
evens out returns to ensure that policyholders do not hold money in a bad year. &n that
sense they are sa!er. 06&#s also o!!er !lexibility. (or instance a policyholder can ask
the insurance company to li$uidate units in his account to meet to mortality charges i!
he is unable to pay any premium installment. This eats into savings but ensures that
the policy will continue to cover his li!e.
06&# came into play in the @HIAs and became very popular in =estern /urope and
Americas. The reason that is attributed to the wide spread popularity o! 06&# is
because o! the transparency and the !lexibility which it o!!ers. 0nit- linked plans are a
contemporary product: transparent and !lexible. &ndividuals have greater control over
their investments. The popularity o! 06&#. stems !rom the !act that they o!!er
customers “integrated !inancial solutions with a transparent charge structure8. &n
todays times1 06&# provides solutions !or insurance planning1 !inancial needs1
!inancial planning !or childrens !uture and retirement planning. 0nit-linked insurance
plans J06&#s; have become something o! a rage with their >promise> o! market-linked
returns combined with the dual bene!it o! insuring your li!e !rom eventualities.
9.D do insu+e+s ?+e:e+ ULIPsG
&nsurers love 06&#s !or several reasons. Most important o! all1 insurers can sell these
policies with lesser capital o! their own than what would be re$uired i! they sold
traditional policies. &n traditional KFit. ?+o:its= policies the insurance company bears
the investment risk to the extent o! insured amount. &n 06&#s the policyholder bears
most o! the investment risk. .ince 06&#s are designed to mobili%e savings1 they give
insurance companies an opportunity to get a large chunk o! asset management
business which has been traditionally dominated by mutual !unds. 06&#s are suitable
!or individuals who are already ade$uately insured and are reasonably well-in!ormed
and savvy to take active investment decisions by using the Vswitch option> that is
provided to a 06&# policyholder. Also policyholders with regular endowment plans
who are not satis!ied with the F-IO returns can consider taking a 06&# with a lower
e$uity component. &t is best i! insurance-seekers tread the middle path and choose
balanced plans Jwith about EA-IAO e$uity
component;. &deally they need to avoid taking the aggressive @AAO e$uity 06
which could needlessly expose their assets to market volatility. .o i! insurances-
seekers*investors play their cards right1 they can make this marriage work.
9'R1IN& '( UNIT LIN1ED INSURANCE PLANS
UNIT LIN1ED PLANS
SUPER S)ART 1ID
Sm/+t1id o!!ers an exclusive choice o! D education insurance plans: .mart9id ,ew
0nit-linked "egular #remium1 .mart9id ,ew 0nit-linked .ingle #remium and
.mart9id "egular #remium. Take a look at the !eatures and bene!its o! each plan:
@. .mart9id ,ew 0nit-linked "egular #remium
.mart9id ,ew 0nit-linked "egular #remium is a unit-linked plan1 which enables you
and your child to accumulate wealth by virtue o! the per!ormance o! the underlying
market-linked instrument. Take a look at the !eatures o! the plan:
P+emium: The minimum premium to be invested is "s. @A1AAA per annum. A!ter
deducting premium allocation charges !rom the premium1 the remaining amount will
be invested in a !und o! your choice.
Sum Assu+ed: The minimum .um Assured that the policyholder can opt !or is Term W
Annual #remium*G1 subject to a minimum o! "s @ 6ac
Po2i7D te+m: The term o! the policy will be calculated as the di!!erence between your
child>s current age and the age o! your child when the policy matures.
)o+t/2itD, Po2i7D Administ+/tion 7./+Ees: These and other charges will be deducted
!rom the units in the !und.
G. .mart9id ,ew 0nit-linked .ingle #remium
.mart9id ,ew 0nit-linked .ingle #remium works in much the same way as
.mart9id ,ew 0nit-linked "egular #remium policy mentioned above. The only
di!!erent !eature is the premium amount-you will be re$uired to pay only a single
premium1 which starts at as low as "s. EA1AAA.
Addition/2 (e/tu+es /nd Bene:its Common to A22 5 P2/ns
ReEu2/+ ?/Douts: As your child approaches key educational milestones such as @Gth
standard or graduation exams1 he or she will receive regular payouts1 guaranteeing he
or she continues to study1 no matter what the circumstance.
De/t. Bene:it: 5our child will receive the .um Assured immediately1 should
something happen to you. &'&'& #rudential will pay the remaining premiums1
ensuring your child continues to receive policy bene!its1 as always.
In7ome Bene:it Ride+: 5ou can choose to add the bene!its o! this rider to your child>s
education plan. .hould you depart be!ore your son>s or daughter>s education is
complete1 you child will receive @AO o! "ider .um Assured1 !or the balance term o!
the policy.
Add#on +ide+s: >Accidental 4eath and 4isability "ider> and >=aiver o! #remium
"ider> ensure your child stays doubly protected1 at all times. 5ou can choose to add
these to your child>s education policy.
T/0 bene:its: #remiums you pay !or a .mart9id policy are eligible !or tax savings
Xu*s NAJ';Y. Maturity and death bene!its are eligible !or tax exemptions Xu*s @AJ@A4;Y.
D. .mart9id "egular #remium
(lexible investment option: 'hoose the amount o! premium with which you wish to
sa!eguard your child>s education.
(2e0ib2e ?o2i7D tenu+e: The tenure o! the plan will be calculated as the di!!erence
between your child>s current age and his or her age at which the policy matures.
(2e0ib2e ?+emium o?tions: The premium will be calculated based on D !actors: .um
Assured1 policy tenure and your age.
&u/+/nteed bonus: A guaranteed bonus o! D.EO per annum is declared !or the !irst F
premium paying years plus an annual vested bonus declared in subse$uent years.
6i!e6ink .uper
=ell-deserved !inancial incentives1 rewarding business pro!its and even ancestral
money are precious amounts that you should invest immediately so they earn you
potentially higher returns in the long run.
&nvest in &'&'& #rudential>s 6i!e6ink .uper policy-a single-premium unit-linked
policy
that works best !or investors who have in mind long-term !inancial goals1 such as the
education o! a child or the purchase o! a larger home.
Apart !rom the potentially higher returns that you can earn1 6i!e6ink .uper insures
your !amily against mis!ortunes with its protective insurance cover.
"ead more about the !eatures and bene!its o! this plan1 right away.
#i$e#ink "u%er at a glance
!eatures and &ene$its o$ #i$e#ink "u%er
o?tions o: Sum Assu+ed: 'hoose to receive either @GEO or EAAO o! the single
premium amount.
(2e0ib2e ?o2i7D te+m: 4ecide how long you wish to invest in this policy. 5ou can
invest !or a minimum o! E years and keep your investment growing !or as long as you
wish a!ter that.
P/+ti/2 Fit.d+/F/2 o: moneD: =ithdraw !unds in installments !rom the Fth year
onwards.
Att+/7tiBe ?+emium /22o7/tion +/tes: /njoy @AAO allocation !or premium amounts
e$ual to or greater than "s. E lacs.
4 inBestment :unds: .elect among (lexi-)rowth1 Maximiser1 (lexi-Balanced1
Balancer1
#rotector1 and #reserver1 based on your !inancial goals and risk pro!ile.
SFit7. bene:it: .witch between !unds anytime to maximi%e on market movements.
5ou can switch !unds F times a year1 at no cost. (or subse$uent switches1 you will be
re$uired to pay a switch !ee o! "s. @AA.
Minimum*Maximum /ntry Age
Maximum Age at #olicy Maturity
Minimum #olicy Term
Minimum .ingle #remium
Minimum .um Assured
Tax Bene!it
A years to IE years
PA years
E years
0p to age FF: "s. GE1AAA1 age FE and above: "s.
EA1AAA
Annual #remium x Term*G. .ubject to a
minimum o! "s. @1AA1AAA
#remium payment up to GAO o! the .um
Assured is eligible !or bene!it under .ec. NA'.
Any amount paid to you will be eligible !or tax
bene!its under .ec. @A J@A4; exemption1 i!
premium paid in any year does not exceed GAO
o! the .um Assured.
)/tu+itD bene:it: "eceive the (und -alue when your policy matures. 'hoose to take
this value as a single lump-sum amount or in monthly1 bi-annual or annual
installments spread over @ to E years.
De/t. bene:it: 5our !amily receives the higher o! (und -alue or .um Assured should
something happen to you.
Wh' #i$eTime "u%er
As an individual who desires a lot !rom li!e-a car1 a beauti!ul home and o! course1 the
com!ort and contentment o! your !amily-you would undoubtedly want to plan your
!inances such that you can take care o! all your re$uirements.
&nvest in &'&'& #rudential>s 6i!eTime .uper policy-a regular-premium unit-linked
policy1 which o!!ers potentially higher returns that systematically enable you to meet
your long-term !inancial objectives. &n addition1 6i!eTime .uper also provides the
protective bene!it o! an insurance cover1 which keeps your !amily secure1 always.
"ead more about the !eatures and bene!its o! this plan.
#i$eTime "u%er at a glance
!eatures and &ene$its o$ #i$eTime "u%er
(2e0ib2e ?o2i7D te+m: 4ecide !or how long you want your policy. 5ou can invest !or a
minimum o! @A years and a maximum o! PE years.
5 7.oi7es o: ?+emium ?/Dment: 3pt to pay the premium on a monthly1 bi-annual or
an annual basis.
4 inBestment :unds: .elect among (lexi-)rowth1 Maximiser1 (lexi-Balanced1
Balancer1 #rotector1 and #reserver1 based on your !inancial goals and risk pro!ile.
SDstem/ti7 Fit.d+/F/2 o: moneD: =ithdraw money in installments !rom the Fth
year onwards.
)/tu+itD bene:it: "eceive the (und -alue when your policy matures. 'hoose to take
this value as a single lump-sum amount or in monthly1 bi-annual or annual
installments.
De/t. bene:it: 5our !amily receives the higher o! (und -alue or .um Assured should
something happen to you.
SFit7. bene:it: .witch between !unds anytime to adjust your port!olio1 based on your
Minimum*Maximum /ntry Age
Maximum Age at #olicy Maturity
Minimum*Maximum #olicy Term
#remium #ayment (re$uency
Minimum #remium
Minimum .um Assured
Tax Bene!it JN;
A years to IE years
PE years
@A years to PE years
Monthly1 hal!-yearly1 yearly
"s. @N1AAA per annum
Annual #remium x Term*G. .ubject to a
minimum o! "s. @1AA1AAA
#remium paid !or the policy and critical illness
bene!it rider will be eligible !or tax bene!it
under .ec. NA' and NA4 respectively. Any
amount paid to you will be eligible !or tax
bene!its under .ec. @A J@A4; as per prevailing
&ncome Tax laws.
goals and risk pro!iles. 5ou can switch !unds F times a year1 at no cost. (or subse$uent
switches1 you will be re$uired to pay a switch !ee o! "s. @AA.
R'LE '( AN ADVIS'R IN UNIT LIN1ED INVEST)ENT PLANS
&t is important !or us to know that what is the role that an advisor will play. At &'&'&
#rudential1 you are an advisor is to
@. #rovide ongoing !inancial advice !or his*her clients: 5ou are an advisor and just
like a lawyer or a doctor you advice the client about insurance and !inance.
G. &denti!y !uture clients: 6i!e insurance is a business o! contacts an the advisor
constantly need to know people so that his business expands.
D. 'onstantly make appointments: 2ust making contacts will not be enough to
develop a good li!e insurance business.
F. Advisor needs to meet these contacts and thus should make appointments on
constantly.
E. 'onduct !inancial review meetings with prospects* clients: As an advisor it is
necessary to meet with client not only !or the purpose o! selling but also to
review the need o! the client and prospects. Many people would not be in !or li!e
insurance today but as time moves they can be re$uiring one. .imilarly an
existing client may also be in need o! more insurance as responsibilities and
liabilities increase.
'lose sale:
0ltimately success is de!ined as sales. The advisor should lead each
appointment towards a sale and close it e!!ectively where in the client is happy
on purchasing the insurance solution and !eels satis!ied with it.
CHAPTER#@
RESEARCH )ETH'D'L'&Y
"esearch Methodology has many dimensions1 it include not only research
methods but also considers the logic behind the methods used in the context o! the
study and explains why only a particular method o! techni$ue had been used so that
research lend themselves to pXroper evaluations. Thus in a way it is a written game
plan !or concluding research there!ore in order to solve research problem it is
necessary to design a research methodology !or the problem as the same may di!!er
!rom problem to problem. "esearch design is the conceptual structure within which
the research is conducted. &ts !unctions are to provide !or the collection o! relevant
evidence with minimum expenditure o! e!!ort1 time and money. But1 how this can be
achieved depends on the research purpose. &n my study the research purpose is
exploratory study i.e. to gain !amiliarity with phenomena or to achieve new insights in
it.
MA"9/T "/./A"'7 4/.&), : 4escriptive type
4ATA .30"'/. : #rimary source
"/./A"'7 A##"3A'7 : .urvey method
"/./A"'7 &,.T"0M/,T : Zuestionnaire
T5#/ 3( Z0/.T&3,. : 'lose-ended
.AM#6/ .&Q/ : @AA samples
M34/ 3( '366/'T&,) 4ATA: "espondents to be chosen randomly.
SA)PLE DESI&N:
.ocial phenomenon being very vast1 it becomes impossible to contact each and every
individual o! population due to limitation o! essential resources like time and money.
There!ore1 the study is pre!erably narrowed down to a representative sample to make
the study more manageable. Zuota sampling is adopted in the exploratory study. &t is a
non-probability study in which various insurance players are taken.
SA)PLIN& UNIT:
The data can be collected !rom primary sources. The basic premises o! my study are
primary data but at the same time it is supplemented with the secondary data.
.ampling unit is a unit which would be considered !or the purpose o! study to conduct
the comparative study o! the &'&'& #rudential and other insurance companies with
special re!erence to 0nit 6ink #lans.
SA)PLIN& SIJE:
&t re!ers to the number o! items to be selected !rom the universal1 to constitute a
sample. To commence the study various insurance players are taken.
H'9 DID I &' AB'UT THE PR'JECT:-
SA)PLE SIJE
A sample si%e o! @AA customers was selected to do this project1 which was random
sampling keeping in mind the basic criteria.
(IELD 9'R1
The research was done !or a period o! G months in Jstudents1 government employee ?
other; ambala. & started with )Y )AR1ET $!! and therea!ter & used to give cold
calls !rom the companys database and i! seemed interested & take along with me the
representatives o! the company !or !urther in!ormation gathering.
@; StudD o: Se7ond/+D D/t/: The $uickest and the most economical way !or
researchers to !ind possible hypothesis is to take the advantage o! the work done
earlier and thus utili%e their e!!orts.
G; In#de?t. Inte+BieFs: & used in-depth interviews because it attempts to in!luence
respondents to talk !reely about their subject o! interest .A !ormal $uestionnaire
was made and according to which the $uestions were asked to the respondents.
B/si7 met.ods o: 7o22e7tinE P+im/+D D/t/:
@; Luestionn/i+e )et.od: The $uestionnaire used by me !or the purpose o! data
collection were o! structured type J,on-disguised;.
G; Cont/7t )et.od: &n order to derive in!ormation !rom the intended organi%ation1
it was elementary !or me to search !or a link which could enable me to conduct a
research in that organi%ation.
'BJECTIVE '( THE STUDY
The project undertaken by me as a part o! my .ummar Training o! M.B.A.course is an
e!!ort made to study the 06&# policies and activities in &'&'& #"04/,T&A6 with
special emphasis on unit linked products o! the company.
&n this era o! cut throat competition1 any organi%ation needs to select and retain the
best talent. #eople selected should have positive attitude1 ability to inspire others and
must be dynamic.
T.e m/in obCe7tiBes o: t.is studD /+e:
• =orking o! 0nit linked &nsurance #lans
• .=3T analysis o! the product sold
• 'omparative study with the competitor.
• .tudy tax planning solutions available in the market.
• .tudy asset allocation through insurance plans.
• Market interphase.
CHAPTER#8
C')PARATIVE STUDY 9ITH THE
C')PETIT'RS
LIST:
• 6i!eTime .uper -s 6&' Bima#lus
• 6i!eTime .uper -s Birla .un6i!e 'lassic 6i!e
• 6i!eTime .uper -s 74(' 6inked
• #remier6i!e -s Bajaj Allian% 0nitgain #lus
LI(ETI)E SUPER VS LIC BI)APLUS
(e/tu+es Li:eTime Su?e+ LIC Bim/P2us
Age A M IA years @G - EE years
Term Minimum premium payment term o!
Dyears @A years
.um Assured 'hoose your sum assured1 subject to
a minimum sum assured o! "s. @
lakh
Maximum limit upto "s. G lakhs
.urvival bene!it -alue o! units JDrd year onwards; Bid -alue o! the !und units
along with maturity bonus at EO
o! the .um Assured
4eath bene!it 7igher o! .um Assured or value o!
units.
4eath during the !irst I months -
DAO o! .A T value o! units1 next
I months - IAO o! .A T value o!
units. 4eath a!ter @st year - .A T
value o! units. 4eath during the
@Ath year - @AEO o! .A T value
o! units.
=ithdrawal bene!it #artial or complete withdrawals are
available !rom the Drd year onwards
#remature withdrawal allowed
a!ter one year Ja!ter applying
bid-o!!er spread.
'ontribution Minimum: "s. @N1AAA p.a. ,ot speci!ied
(lexible
contribution
(lexibility to increase or decrease in
contribution ,ot available
&nvestment options Maximiser1 Balancer1 #rotector ?
#reserver. Balanced1 .ecured ? "isk
&ncrease * 4ecrease
o! death bene!it
Available. ,ot available
Bonus units Available ,ot Available.
Top-up Available. Minimum top-up o! "s.
EAAA. 'harges - @O o! top-up.
Available J'harges: @.EO o! the
top-up;
.witch
F !ree switches a year1 with the
minimum switch amount being "s.
GAAA.
,o !ree switches. 'ost o!
switching is GO o! the !und
value.
.urrender value The policy will ac$uire a surrender
value a!ter D complete premium-
paying years. The surrender value is
#artial surrender up to EAO o!
bid value o! units allowed a!ter D
years !rom date o!
@AAO o! the value o! investments. commencement
&nitial 'harge O Allocation o! the premium ,ot 4isclosed
@NAAA- FH1HHH: @st year - NAOB Gnd
year - HG.EO B Drd year onwards -
HIO.
EAAAA and above: @st year - NGOB
Gnd year - HG.EOB Drd year onwards -
HIO.
Admin 'harge ,one ,ot applicable
3ther 'harges ,ot applicable ,ot applicable
(und Management
'harges
The annual administrative and !und
management charge is G.GEO !or
Maximiser1 G.GEO !or Balancer1
@.EAO !or #rotector ? A.PEO !or
#reserver. @O o! the !und per annum
I(ETI)E SUPER VS HD(C LIN1ED
(e/tu+es Li:eTime Su?e+ HD(C Lin-ed
Age A - IA years @N - IA years
Term Minimum premium payment term o!
Dyears
@A - DA years
.um Assured 'hoose your sum assured1 subject to
a minimum sum assured o! "s. @
lakh
3nly E1@A1 GA Jage-based;
multiples are allowed as .um
Assured.
.urvival bene!it -alue o! units JDrd year onwards; -alue o! units
4eath bene!it 7igher o! .um Assured or value o!
units.
7igher o! .um Assured or value
o! units.
=ithdrawal bene!it #artial or complete withdrawals are #artial withdrawal available
available !rom the Drd year onwards !rom the Drd year onwards1
provided that the -alue o! 0nits
does not go below the .um
Assured.
'ontribution Minimum: "s. @N1AAA p.a. Minimum: "s. @A1AAA p.a.
(lexible
contribution
(lexibility to increase or decrease in
contribution.
Available
&nvestment options Maximiser1 Balancer1 #rotector ?
#reserver.
E (und 3ptions- Balancer1
4e!ensive Managed1 .a!e
Managed1 6i$uid ? )rowth
&ncrease * 4ecrease
o! death bene!it
Available. ,ot available
Bonus units Available ,ot available
Top-up Available. Minimum top-up o! "s.
EAAA. 'harges - @O o! top-up.
Available
.witch F !ree switches a year1 with the
minimum switch amount being "s.
GAAA.
.witches are !ree as o! now. But
the company reserves the right
to put a charge on the switches.
.urrender value The policy will ac$uire a surrender
value a!ter D complete premium-
paying years.
The surrender charge is GEO o!
D years outstanding regular
premium. ,o charges a!ter D
years
&nitial 'harge O Allocation o! the premium 'harges
@NAAA- FH1HHH: @st year - NAOB Gnd
year - HG.EOB Drd year onwards -
HIO.
@st yr-GPO1 Gnd yr- GPO1 Drd yr
onwards- @O
EAAAA and above: @st year - NGOB
Gnd year - HG.EOB Drd year onwards -
HIO.
Admin 'harge ,one Admin charges o! "s.@NA !ixed
charge per annum.
3ther 'harges ,ot applicable ,ot applicable
(und Management
'harges
The annual administrative and !und
management charge is G.GEO !or
Maximiser1 G.GEO !or Balancer1
@.EAO !or #rotector ? A.PEO !or
#reserver.
&nvestment charge o! A.NAO o!
the (und -alue across all the
!unds.
"ider A4B"1 '&B" ? M.A" AB" ? '&B"
SUPER PRE)IER LI(E VS BAJAJ ALLIANJ UNIT&AIN PLUS
(e/tu+es Su?e+ P+emie+ Li:e B/C/C A22i/nH UnitE/in P2us
Age @N - IA years A - IA years
Term #remium paying term o! D years1 E
years1 P years or @A years.
Minimum premium payment
term o! D years
.um Assured .um Assured multiple is @ - GE times
the annual premium
Minimum .um Assured is E
times the premium paid.
.urvival bene!it -alue o! units Anytime a!ter payment o! D
!ull year>s premiums.
4eath bene!it 7igher o! .um Assured decreased by
the amount o! withdrawals made or
value o! units.
7igher o! .um Assured or
value o! units
=ithdrawal bene!it #artial withdrawals are available a!ter
the Drd policy year and a!ter payment
o! D years> premiums. 'omplete
withdrawals are available a!ter the @st
year premium. 7owever surrender
penalties will apply.
#artial or complete
withdrawals are available a!ter
the Drd years contribution
'ontribution Minimum: "s. IA1AAA p.a. Minimum: "s. @A1AAA p.a.
(lexible
contribution
Available
Available
&nvestment options Maximiser1 Balancer1 #rotector ? /$uity &ndex (und1 /$uity #lus
#reserver. (und1 4ebt (und1 Balanced
(und1 'ash (und
4ecrease in death
bene!it
Available. Available
Bonus units Available. ,ot available
Top-up Available. Minimum top-up o! "s.
EAAA. 'harges - @O o! top-up.
Available. 'harge are GO o!
the top-up amount
.witch F !ree switches a year. Three !ree switches every year.
.urrender value The policy will ac$uire a surrender
value !rom the @st year onwards.
=ithdrawals are only allowed
a!ter payment o! D !ull year>s
premiums
&nitial 'harges O Allocation o! the premium O Allocation o! the premium
3 year premium payin !erm @st year - PIOB HPO !rom year
G onwards
"s. IA.AAA - "s. F1HH1HHH: @st year:
NPOB Gnd and Drd year: HIO
"s. E1AA1AAA and above: @st year: NHOB
Gnd and Drd year: HIO
"# $ an% &' year premium payin !erm
"s. IA.AAA - "s. F1HH1HHH: @st year:
NNOB Gnd and Drd year: HPOB Fth and
Eth year: HNOBIth year onwards: @AAO
"s. E1AA1AAA and above: @st year: HAOB
Gnd and Drd year: HPOB Fth and Eth
year: HNOB Ith year onwards: @AAO
Admin 'harge Admin charge o! "s. IA * month Annual admin charges o! "s.
GA
(und Management
'harges
The annual investment charge is @.EAO
!or Maximiser1 @.AAO !or Balancer1
A.PEO !or #rotector ? #reserver.
@.EO p.a. !or a /$uity #lus
(und1 @O p.a. !or /$uity &ndex
(und1 ,o speci!ic charges in
case o! Balanced (und1 A.PO
p.a. !or 4ebt #lus (und and
A.PO in case o! 'ash #lus
(und.
"ider A4B" ? '&B" AB"1 A4B"1 '& ? 7ospital
'ash Bene!it
STUDY TA> PLANNIN& S'LUTI'NS
AVAILABLE IN THE )AR1ET
TA> BENE(ITS 'N INSURANCE AND PENSI'N
6i!e insurance and retirement plans are e!!ective ways o! saving taxes. The tax breaks
that are available under various insurance and pension policies are described below:
• 6i!e insurance plans are eligible !or deduction under .ec. NA'
• #ension plans are eligible !or a deduction under .ec. NA'''
• 7ealth riders are eligible !or deduction under .ec. NA4
• The proceeds or withdrawals o! li!e insurance policies are exempt
under .ec @AJ@A4;1 subject to norms prescribed in that section.
T/0 R/tes+ IndiBidu/2s
T.e +/tes o: in7ome t/0+ (Y !!6#!" /+e /s 22oFs:
Tot/2 In7ome (Rs,%
Rate "f ta#
Senio+ 7itiHen 9omen be2oF 48
De/+s
't.e+s
0pto "s @1AA1AAA*- ,il ,il ,il
Above "s @AA1AAA*- to @FE1AAA*- ,il ,il @AO
Above "s @FE1AAA*- to @EA1AAA*- ,il @AO @AO
Above "s @EA1AAA*- to @HE1AAA*- ,il GAO GAO
Above "s @HE1AAA*- to GEA1AAA*- GAO GAO GAO
Above "s GEA1AAA*- DAO DAO DAO
Su+7./+Ee on In7ome T/0: &n case where the Total &ncome exceeds "s @A1AA1AAA1
there would be a surcharge [ @AO.
Edu7/tion Cess on In7ome T/0: /ducation 'ess [GO will be payable on the
amount o! income tax Jincluding surcharge;.
Bene:its unde+ insu+/n7e ?o2i7D # Se7tion $!($!D%
As per .ection @AJ@A4; o! &ncome tax Act1 @HI@1 any sum received under a li!e
insurance policy1 including the sum allocated by way o! bonus on such policy is
exempt !rom tax. 7owever1 this rule does not apply to !ollowing amounts:
.um received under .ection NA44 JD;1 or
Any sum received under a 9eyman &nsurance #olicy1 or
Any sum received other than as death bene!it under an insurance policy which has
been issued on or a!ter April @ GAAD and i! the premium paid in any o! the years
during the term o! the policy is more than GAO o! the sum assured.
CHAPTER#4
DATA ANALYSIS A (INDIN&S
$%, A+e Dou inte+ested in ?+odu7ts o::e+ed bD t.e ICICI PRUDENTIALG
5es I@O
,o GGO
=ill think @PO
INTERPRETATI'N
The good thing is that atleast the corporates were $uite eager to !ind out what &'&'&
#"04/,T&A6 has to o!!er whereas the major DH O o! the corporates were not even
interested in the products as they are $uite satis!ied by the 6&' and they are not in
breaking their long relationship with them. The private players will have to play a
long battle in order to ensure that they are serious player in the market. Basically
corporates think that its too early to invest in private companies as they have just
entered the scene and they are unsure o! the security they will have about their
investment.
()*
++*
),*
-es
No
Will think
%, A+e Dou s/tis:ied Fit. Dou+ ?+esent insu+e+G
5/. IEO
,o DEO
INTERPRETATI'N
7ere is where the challenge is. &nevitably most o! the players are very satis!ied with
their present insurer which makes it more tough !or the private players to attract the
corporates. The remaining DE O are also not very dissatis!ied by the services but they
are just open to new avenues and are looking !orward that private companies come
with good o!!ers so that they may shi!t to them. Thus private players will have to be
very proactive and in this regard since 6&' is the leader and &'&'& #"04/,T&A6 is
lagging behind its competitors in terms o! competition.
5%, 9.e+e Fou2d Dou 2i-e to insu+e i: EiBen 7./n7eG
(.*
/.*
-es
No
6&' - IA
&'&'& - @A
BA2A2 A66&A,Q - E
TATA A&) - @E
.B& - N
93TA9 MA7&,4"A - G
INTERPRETATI'N
Thus we see that the companies are com!ortable in having business with govt. owned
companies as they !eel its sa!e ? secure to have business with them which is !ollowed
by .B& as it is the biggest bank and then !ollowed by TATA A&) as the name TATA is
associated with it which commands huge premium in the market . =hereas in the case
o! &'&'& #"04/,T&A6 the !igures represent mediocre per!ormance a!ter compelling
and coxing the corporates and creating a strong impression whether they !eel
interested in doing business with the company.
@%, 9./t is ?eo?2e=s m/in 7on7e+n F.i2e t/-inE / insu+/n7e ?o2i7D (ULIP%G
(0
1
).
)0
.
+
0
)0
+0
/0
20
.0
(0
#IC "BI TATA AIG ICICI BAJAJ 3OTA3
4A5IN6RA
'3M#A,&/..
,3
3(
#/3#6/
A; .ecurity FAO
B; "eturns GNO
'; Tax rebate DGO
INTERPRETATI'N
#eople invest in insurance mainly because o! security concern.
8%, A+e Dou /F/+e o: Li:etimeSu?e+ int+odu7ed bD ICICI P+udenti/2 2imitedG
5es ENO
,o FGO
INTERPRETATI'N
The awareness level among the corporate about &'&'& #"04/,T&A6 o!!ering
services is very low and the company needs to work on it. Today is the world o!
marketing thus it is recommended that company should become more media !riendly
by advertising more through television channels1 radio1 newspapers1 maga%ines1
journals ?editorials.
CHAPTER#6
LI)ITATI'NS
• The geographical area was very much limited to residential area ? so the
results are not particularly re!lection o! the current behavior.
• Biases and non-cooperation o! the respondents.
• 4ue to limited time period and constrained working hours !or most o! the
respondents1 the answers at times were vague enough to be ignored.
• Most o! the people in &ndia take their policies in the period preceeding
MarchJ!or tax saving purposes; ? so the response to initial contacts were not
all encouraging and that has been the primary reason in the inability to
$uanti!y the results large enough so as to reduce any relevant outcomes.
• Most o! the results that are spelt out have been o! $ualitative aspects.
• #eople are not interested in giving personal opinion.
REC'))ENDATI'NS
• More emphasis should be on promotional activities.
• #lenty o! advertisement should be done through T.-1 ,ewspaper and "adio as
these medias are having maximum recall value.
• Total !inancial planning and advice should be given to every customer.
• More business opportunity seminars should be conducted to make people
aware o! the o!!er given.
• The company should $uite !re$uently send their agent to the customer so that
they should be aware o! the latest o!!er.
• The company should attempt to open more and more o! its branches in the
country so as to promote their product publicity.
C'NCLUSI'N
6&' enjoys credibility over other private players in the industry #eople look
!or security over returns in market linked plans .6i!etime is the most popular
product among the people who are aware about &'&'& #rudentials products.
#eople are now showing more interest in 06&# as compared to some o! the
traditional plans.
&'&'& #"04/,T&A6 has to counter the distribution network o! 6&' .The
product pro!ile o! &'&'& #"04/,T&A6 is not very comprehensive
BIBL'&RAPHY
• www.iciciresearchcenter.org
• www.tata-aig.com
• www.icicipruli!e.com
• www.personal!n.com
ANNE>URE
@. 4o you have any li!e insurance policies<
5es ,o
&! 5es: -
,ame o! the 'ompany ++++++++++++++++
,ame o! the plan +++++++++++++++++
Annual Amount o! premium +++++++++++++++++
Term o! plan +++++++++++++++++
@. Are you satis!ied with present insurer<
A; 5/. B; ,3
G. =hich are the main issues that you take into consideration while purchasing
any li!e insurance policy<
A; .ecurity
B; "eturns
'; Tax saving
4; 3thers please speci!y+++++++++
D. Are you aware o! 0nit 6inked &nsurance #lans o!!ered by various companies in
&ndia<
A; &'&'& B; 3M 93TA9 MA7&,4"A
'; TATA A&) 4; BA2A2 A66&A,Q
/; 6&' (; .B&
); MAL ,/= 53"9 7; B&"6A .0,6&(/
F. 4o you know how a 0nit 6inked &nsurance #lan works<
A; 5/. B; ,3
E. 'an you please highlight risk attached with them<
A; 7&)7
B; M34/"AT/
'; 63=
I. =hat is your perception about the 0nit link insurance plans1 are they give you
a sense o! security<
A; 5/.
B; ,3
P. Are you aware o! 6i!etime pension plan introduced by &'&'& #rudential
limited<
A; 5/.
B; ,3
N. &! you are given a choice1 which one you take:
A; &'&'& B; 3M 93TA9 MA7&,4"A
'; TATA A&) 4; BA2A2 A66&A,Q
/; 6&' (; .B&
H. =hat other plans or !lexibility you expect !rom &nsurance companies<
A; (ewer premiums
B; More returns
'; 'omplementary gi!ts
@A. Are you interested in buying products o! &'&'& #rudential<
A; 5/.
B; ,3
doc_695672798.doc
PROJECT REPORT
ON
“A COMPARATIVE STUDY OF ULIP PLANS OFFERED BY
ICICI PRUDENTIAL AND OTHER LIFE INSURANCE
COMPANIES”
Submitted To:
PUNJAB TECHNICAL UNIVERSITY,
JALANDHAR
FOR THE PARTIAL FULFILLMENT OF THE AWARD OF
DEGREE OF MASTER OF BUSINESS ADMINISTRATION
(Session !!"#$!%
UNDER &UIDANCE '( : SUB)ITTED BY*
)+s, Su-.meet -/u+ Di0it 1um/+
Ro22 No, : "!3!45$6!!
SVIET
Cont/7t no, # !3!$6!6486$
S9A)I VIVE1NAND INSTITUTE '( EN&INEERIN& AND
TECHN'L'&Y
PUNJAB TECHNICAL UNIVERSITY,
JALANDHAR
P+e:/7e
MBA is a stepping-stone to the Management carrier and to develop good Managers is
necessary that the theoretical must be supplement with exposure to the real
environment.
Theoretical knowledge just provides the base and its not su!!icient to produce a good
Manager thats why the practical knowledge is needed.
There!ore the "esearch #roject is an essential re$uirement !or the student o! MBA.
This research project not only helps the students to utili%e his skills properly and learn
!ield realities but also provides a chance to the organi%ation to !ind out talent among
the building Managers in the very beginning.
&n accordance with the re$uirement o! MBA course & have done my research project
on the topic ;C')PARATIVE STUDY '( ULIP PLANS '((ERED BY ICICI
PUDENTIAL AND 'THER LI(E INSURANCE C')PANIES< with special
re!erence to &'&'& #rudential.
'erti!icate by the (aculty )uide
&UIDE=S CERTI(ICATE
This is to certi!y that Mr. *Ms. ++++++++++++++++++bearing the "eg. ,o.
++++++++++++ currently undergoing &-th .emester MBA in .wami
-ivekanand &nstitute o! /ngineering and Technology a!!iliated to #unjab
Technical 0niversity1 2alandhar he carried out a project on “A
'3M#A"AT&-/ .T045 3( 06&# #6A,. 3((/"/4 B5 &'&'& #"04/,T&A6
A,4 3T7/" 6&(/ &,.0"A,'/ '3M#A,&/.8 under my guidance and
supervision and the work done by her is original and outcome o! her
sincere e!!orts.
Mrs. .ukhmeet 9aur
4ate: ----------
(#"32/'T )0&4/;
INDE>
I. PREFACE
II. CERTIFICATE
III. EXECUTIVE SUMMARY
IV. LITERATURE REVIEW
S+,no Tit2e
C./?te+#$ INTR'DUCTI'N
? &ntroduction - basics o! insurance
? ,eed o! li!e o! insurance
? "oles o! insurance
? Types o! li!e insurance
C./?te+# INDUSTY PR'(ILE
C./?te+#5 C')PANY PR'(ILE
C./?te+#@ RESEARCH )ETH'D'L'&Y
C./?te+#8 C')PARATIVE STUDY
C./?te+#4 DATA ANALYSIS A INTERPRETATI'NS
C./?te+#6 LI)ITATI'NS
(i% REC'))ENDATI'NS
(ii% C'NCLUSI'N
(iii% BIBLI'&RAPHY
(iB% ANNE>URE
Literature Review
7ow a company does announced a name change especially when the old name was
well known< 7ow does the company explain itsel! to constituents who may have
known the company $uite well in an earlier incarnation but may be struggling to
!igure out what the new organi%ation stands !or< 7ow can the company create a new
image while retaining the strengths o! the old one< And what role might corporate
advertising play in all this< 'orporate advertising can tell a story about a company as
a whole1 large organi%ations may need to use corporate ads to simpli!y their image in
the minds o! key constituents and to show what uni!ies the company1 despite the
geographical spread and variety o! its businesses.
=e can very well understand the concept o! corporate advertising by taking the
example o! &'&'& #rudential communication. =hen 'ompany !irst began operations1
the task was to present the visiting card o! the company to the public at large and
build credibility and stature and to give the consumer the con!idence that >>here is a
company that can be trusted to invest !unds with.>>
This re$uired a corporate campaign - to establish the brand1 build awareness and give
the brand a larger-than-li!e image.
The advertising idea1 which was encapsulated in symbols o! protection !rom the initial
print campaign1 culminated in the corporate !ilm where sindhoor was used as an
endearing and lasting symbol o! protection. 3nce the corporate image and brand
identity were established1 and as the company expanded and its product range grew1
the next phase o! communication was to give the
consumer a rational and tangible reason to buy - !irst o! all insurance and secondly
!rom &'&'& #rudential 6i!e. This was tackled through product-speci!ic advertising1
such as !or &'&'& #ru .mart 9id1 retirement solutions or 6i!eTime.
Key Summery
? 'reate a good citi%en image through consistent ? dedicated e!!ort.
? 'onvey the organi%ations commitment to the concerned publics as well as to
the masses ? eliminate prejudices1 i! any held by opinion leaders in particular
? by the public in general.
? Boost both employee management relation ? employee morale enabling all
? Members o! the internal public to discover a new vitality.
E>ECUTIVE SU))ARY
Tit2e o: t.e ?+oCe7t:
.tudy 06&# in current market scenario* .tudy customer response towards 06&#
'bCe7tiBes:
? =orking o! the unit linked insurance plans
? .wot analysis o! the product
? 'omparative study o! the competition
? .tudy tax planning solutions available in the market
? .tudy asset allocation through insurance plans
? Market inter!ace
Com?/+/tiBe /n/2Dsis done on:
? 6i!e insurance corporation
? 74(' .tan 6i!e
? Birla .un 6i!e
? Bajaj Allian%
Rese/+7. )et.odo2oED:
#rimary data collected by personally visiting these leading insurance players. /g:
6&'1 Max ,ew 5ork 6i!e &nsurance1 Bajaj Alliance1 Birla .unli!e1 74(' .tan li!e.
D/t/ Co22e7tion:
? #rimary data collected through direct intrection with customer.
? .ample si%e @AA people.
? .econdary database !rom di!!erent maga%ines.
? (irst and !oremost1 accumulating in!ormation !rom newspapers 1
2ournals1 Maga%ines1 and company webside.
? .econdly1 taking a sample si%e and doing a market survey by !illing up
$uestionnaires !rom customers to !ind out what di!!erent companies are
o!!ering in the 06&# section and how are they similar*di!!erent !rom &'&'&
#"04/,T&A6 products. Also keeping a track and taking down the
!eedback regarding perception1 attitude1 taste and pre!erences o! the
customer.
? Thirdly1 analy%ing the data collected. 'omparing the 06&# products
o!!ered by other insurance players.
? 'ritical analysis o! consumer perceptionB their choice and pre!erences.
? /ventually1 deciding on how to !amiliari%e 06&# products in the market
and what all sa!eguards need to be taken while approaching the customers.
CHAPTER#$
INTR'DUCTI'N T' INSURANCE
6&(/ &,.0"A,'/ )/,/"A6
Insu+/n7e is / sDstem to /22eBi/te :in/n7i/2 2osses bD t+/ns:e++inE +is- o: 2oss :+om
one entitD to /not.e+,
C&nsurance is basically a sharing device. The losses to assets resulting !rom natural
calamities like !ire1 !lood1 earth$uake1 accidents1 etc. are met out o! the common pool
contributed by large number o! persons who are exposed to similar risks. This
contribution o! many is used to pay the losses su!!ered by un!ortunate !ew. 7owever
the basic principle is that loss should occur as a result o! natural calamities or
unexpected events which are beyond the human control. .econdly insured person
should not make any gains out o! insurance.
&t is natural to think o! insurance o! physical assets such as motor car insurance or !ire
insurance but o!ten we !orget that creator o! all these assets is the human being whose
e!!orts have gone a long way in building up the assets. &n that sense1 human li!e is a
uni$ue income generating assets. 0nlike the physical assets1 which decrease in value
with passage o! time1 the individual becomes more experienced and more matured as
he advances in age. This raises his earning capacity and the purpose o! li!e insurance
is to protect the income in the event o! his premature death. The individual himsel!
also needs !inancial security !or the old age or on his becoming permanently disabled
when his income will stop. &nsurance also has an element o! savings in certain cases.
HoF insu+/n7e Fo+-sG
.uppose there are @AAA persons all aged DE years and healthy lives. They are insured
!or one year against the risk o! death. /ach person is insured !or "s. EA1AAA. &! the
past experience indicated that F out o! @AAA persons1 at this age are expected to die
during the year1 expected amount o! death claim to be paid to the !amily o! !our
persons would come to "s. G1AA1AAA. The contribution to be paid by each o! the @AAA
persons will come to "s. GAA per year. Thus1 all the @AAA persons share loss caused to
the F un!ortunate !amilies. HHI persons who survived till one year have not lost
anything as they secured peace o! mind and a !eeling o! security o! their !amily. =hile
insurance cannot prevent accidents or premature death1 it can help protect the !amily
o! the decreased against the loss o! income caused by the death o! the main
breadwinner. &n return !or speci!ied payments1 insurance will provide protection
against the incidence o! an uncertain event- such as premature death. The business o!
insurance company called insurer is to bring together persons who are exposed to
similar risks1 collect contribution Jpremium; !rom them on some e$uitable basis and
pay the losses Jclaims; to the un!ortunate !ew who su!!er.
C2/ssi:i7/tion o: Insu+/n7e
&nsurance business can be divided into two broad categories1 li!e and non-li!e. 6i!e
insurance is concerned with making provision !or a speci!ic event happing to the
individual1 such as death whereas non li!e Jor general insurance; is more commonly
concerned with the provision !or a speci!ic event which a!!ects a property1 such as
!ire1 !lood1 the!t etc. &n this course we will only cover li!e insurance. .o1 let us now
move on to the de!inition o! li!e insurance.
De:inition o: Li:e Insu+/n7e
According to the 0... 6i!e 3!!ice Management Association &nc. J63MA;1 li!e
insurance is de!ined as !ollows: C6i!e insurance provides a sum o! money i! the person
who is insured dies whilst the policy is in e!!ect8.
NEED ('R LI(E INSURANCE
"isks and uncertainties are part o! li!e>s great adventure -- accident1 illness1 the!t1
natural disaster - they>re all built into the workings o! the 0niverse1 waiting to happen.
&nsurance then is man>s answer to the vagaries o! li!e. &! you cannot beat man-made
and natural calamities1 well1 at least be prepared !or them and their a!termath.
&nsurance is a 7ont+/7t between two parties - the insurer Jthe insurance company; and
the insured Jthe person or entity seeking the cover; - wherein the insurer agrees to pay
the insured !or !inancial losses arising out o! any un!oreseen events in return !or a
regular payment o! K?+emiumK.
These un!oreseen events are de!ined as K+is-K and that is why insurance is called a
risk cover. 7ence1 insurance is essentially the means to !inancially compensate !or
losses that li!e throws at people - corporate and otherwise.
The principle o! insurance works on the concept o! a large number o! people exposed
to a similar risk making a contribution to a common !und. Those who su!!er losses
due to the occurrence o! these events are compensated !or them !rom this !und.
R'LE '( LI(E INSURANCE
Life Insurance As An Investment !
&nsurance is an attractive option !or investment. =hile most people recogni%e the risk
hedging and tax saving potential o! insurance1 many are not aware o! its advantages as
an investment option as well. &nsurance products yield more compared to regular
investment options1 and this is besides the added incentives o!!ered by insurers.
5ou cannot compare an insurance product with other investment schemes !or the
simple reason that it o!!ers !inancial protection !rom risks1 something that is missing
in non-insurance products. &n !act1 the premium you pay !or an insurance policy is an
investment against risk. Thus1 be!ore comparing with other schemes1 you must accept
that a part o! the total amount invested in li!e insurance goes towards providing !or
the risk cover1 while the rest is used !or savings.
&n li!e insurance1 unlike non-li!e products1 you get maturity bene!its on survival at the
end o! the term. &n other words1 i! you take a li!e insurance policy !or GA years and
survive the term1 the amount invested as premium in the policy will come back to you
with added returns. &n the un!ortunate event o! death within the tenure o! the policy1
the !amily o! the deceased will receive the sum assured.
,ow1 let us compare insurance as an investment options. &! you invest "s @A1AAA in
##(1 your money grows to "s @A1HEA at H.E per cent interest over a year. But in this
case1 the access to your !unds will be limited. 3ne can withdraw EA per cent o! the
initial deposit only a!ter F years.
The same amount o! "s @A1AAA can give you an insurance cover o! up to
approximately "s E-@G lakh Jdepending upon the plan1 age and medical condition o!
the li!e insured1 etc; and this amount can become immediately available to the
nominee o! the policyholder on death. Thus insurance is a uni$ue investment avenue
that delivers sound returns in addition to protection.
TYPES '( LI(E INSURANCE PLANS
Li:e Insu+/n7e P2/ns:
0nder 6i!e insurance plans1 &'&'& #rudential o!!ers plans under the !ollowing major
need categories:
/ducation &nsurance #lans
=ealth 'reation #lans
#remium )uarantee plans
#rotection #lans
Education Insurance Plans
3ne o! your most important responsibilities as a parent is to ensure that your child
gets the best possible education that can be provided.
&'&'& #rudential o!!ers a wide port!olio o! education insurance plans that are designed
to provide peace o! mind to you1 as a parent1 that your child>s education will be
secure. These plans ensure that money is made available at the crucial junctures in a
child>s education - 'lass L1 'lass L&&1 graduation and post-graduation - to !und
crucial commitments !or the child>s !uture.
&mportantly1 education insurance plans ensure that in the un!ortunate event o! the
death o! a parent1 the child>s education continues unhampered.
0nder the education insurance plans plat!orm1 &'&'& #rudential brings the !ollowing
products to you. #lease click on the product name to know more about the plans.
Wealth Creation Plans
=ealth 'reation #lans give the customer the dual bene!it o! protection along with the
potentially higher returns o! market-linked instruments. The most important bene!it o!
#lan ,ame
.mart9id ,ew 0nit-linked
"egular #remium
.mart9id ,ew 0nit-linked
.ingle #remium
.mart9id "egular #remium
#lan Type
0nit 6inked
0nit 6inked
Traditional
06&#s is the !lexibility they give the customer in choosing the premium amount and
also choosing the underlying !und in which this money is to be invested. =ealth
creation plans also o!!er the customer more li$uidity options as compared to
traditional plans. As such1 06&#s are ideal !or customers who want the protection o! a
li!e cover to be allied to the returns o! market linked instrument M giving them an
unmatched combination o! bene!its.
0nder the wealth creation plat!orm1 &'&'& #rudential brings the !ollowing products to
you. #lease click on the product name to know more about the plans.
#lan ,ame
LifeTime Super
LifeLink Super
PremierLife Gold
LifeTime Plus
#lan Type
Unit Linked
Unit Linked
Unit Linked
Unit Linked
Premium Guarantee Plans
The latest addition to the li!e insurance product port!olio o! &'&'& #rudential is the
#remium )uarantee plan - &nvest.hield 6i!e ,ew. #remium )uarantee plans are the
ideal insurance-cum-investment option !or customers who want to enjoy the
potentially higher returns o! a market linked instrument1 but without taking any
market risk.
0nder the #remium )uarantee #lans plat!orm1 &'&'& #rudential brings to you the
!ollowing products:
#lan ,ame
InvestShield Life New
InvestShield CashBak
#lan Type
Unit Linked
Unit Linked
Protection Plans
The sole objective o! these plans1 as their name indicates1 is to serve the protection
needs o! the customer and by doing so1 sa!eguard ones !amily !rom the !inancial
implications o! un!ortunate circumstances than one cannot !oresee.
0nder the #rotection #lans plat!orm1 &'&'& #rudential brings to you the !ollowing
products:
THE INSURANCE RE&ULAT'RY AND DEVEL'P)ENT
AUTH'RITY (IRDA%
"e!orms in the &nsurance sector were initiated with the passage o! the &"4A Bill in
#arliament in 4ecember @HHH. The &"4A since its incorporation as a statutory body in
#lan ,ame
LifeGuard
Save'n'Protet
CashBak
!ome "ssure
#lan Type
Traditional
Traditional
Traditional
Traditional
April GAAA has !astidiously stuck to its schedule o! !raming regulations and registering
the private sector insurance companies.
The other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the li!e insurance companies was the launch o! the
&"4As online service !or issue and renewal o! licenses to agents.
The approval o! institutions !or imparting training to agents has also ensured that the
insurance companies would have a trained work!orce o! insurance agents in place to
sell their products1 which are expected to be introduced by early next year. .ince
being set up as an independent statutory body the &"4A has put in a !ramework o!
globally compatible regulations. &n the private sector @G li!e insurance and I general
insurance companies have been registered.
9HY PRIVATE INSURANCEG
• All the private companies have a lock in period o! D yrs hence no disinvestments
possible.
• Minimum net worth o! EAA 'r re$uired !or ac$uiring license with a minimum paid
up capital o! @AA 'r in their insurance venture.
• 'ommitment to increase the paid up capital mani!old in next !ive years.
• "e insurance !or all its policies worth more than E lakhs. "einsurance partners1
best and the largest in the world M general cologne and .wiss reinsurance.
• Audit o! accounts by at least G independent approved auditors each year.
• #roducts and pricing are cleared by &"4A1 which looks into the !inancial visibility
o! the product and the !inancial implication.
• &"4A is now proposing a #vt. #olicy #rotection !und.
• (unds to be invested in only regulated and controlled areas with close to
NAObeing pumped into only gilts thereby assuring sa!ety o! !unds.
CHAPTER#
INDUSTRY PR'(ILE
Background
&n @H@G1 the &ndian li!e insurance companies Act was passed . This was the !irst
comprehensive legislation in &ndia to regulate the business o! insurance. it had been
observed that the provisions o! &ndian 'ompanys Act did not meet the purpose. A
!urther legislation was passed in @HGN1 But a comprehensive legislation was passed in
@HDN. The amendments in the act were made in @HEI when insurance was nationali%ed
and 6&' and )&' were !ormed.
6i!e insurance business was nationali%ed with e!!ect !rom @H 2anuary @HEI
and GEI companies were merged. &nsurance Act was !urther amended in @HHH and
&"4A was !ormed in view o! the circumstances arising out o! opening up o! insurance
industry in GAAA.&"4A authority to protect the interest o! the holders o! insurance
policies1 to regulate 1 promote and ensure the working o! all companies.
As we enter into the new millennium1 economies o! the world over are getting
rede!ined and remodeled with the new mindsets1 new technologies1 new riles and new
directions. (inancial sector re!orms received top priority ever since the )ovt. o! &ndia
initiated the process o! economic liberali%ation. These re!orms are extending the
hori%ons o! the !inancial services sector and have been trans!orming our capital
markets 1 banking and !inancial services industries.
&n the last !our decades 1 a!ter nationali%ation o! the insurance industry 1
certain socio-economic objectives were achieved through public ownership o! the
insurance business. 5et1 market oriented dynamism was missing as evidenced by the
lack o!
product innovations1 high premium rates and limited use o! in!ormation
technology.
The insurance sector re!orms have encouraged Blue-Bloods o! &ndian corporate sector
TATA1&'&'&174('1B&"6A1.B&1"/6&A,'/193TA9 etc to tie up with worlds
largest insurance majors to capture slice o! the countrys potential insurance market.
This has brought abu%% activities in insurance business. ,ew players are wooing the
customer with promises o! better services and customi%ed products. The 6&' and )&'
are countering the competition on the strength o! their track records1 distribution
networks and so on.
This new scenario will witness !inancially sound and experienced players
trans!orming the industry with best products in service and product development 1
operational e!!iciency1 marketing capability1 service plus and tech-savvy orientation.
As a result1 the insurance business can become global with e-business applications.
&t is awkward business playing value !igures on peoples lives. &t is almost as
awkward as selling the likelihood o! an event people do not want crossing their minds
. in &ndia1 it is rather a shrub. (or this reason alone li!e insurance is no ordinary
market. 0nder the pressure o! competitors di!!erentiate their o!!erings1 insurers no
longer sell li!e insurance as a product that meets a basic need 1 many o! them sell
though the appeal o! a wide variety o! add on bene!its ranging !rom tax saving to
investment return1 sometimes pitying more emphasis on these basic bene!its.
This assumes signi!icance because &ndia is witnessing !oreign
competition in this sector a!ter a long monopoly period.
There is consensus on success becoming a !unction o! market strategy.
.o !ar the market has been shaped by 6&' . it is only recently that private
insurers with PF:GI joint ventures between &ndian and !oreign companies have
been !ormed under the watch o! &"4A. &'&'& prudential1 74(' slandered li!e
and Max ,ew 5ork 6i!e were !irst o!! the block1 !ollowed by 9otak
Mahindra1 "oyal .undram1TATA Aig1Birla .unli!e1.B& 6i!e and &,) -yasa
which were started later.
.udden burst o! competition itsel! is a uni$ue occurrence. The &ndian
market distinguishes itsel! in other ways too1 most notably in the areas o!
consumer perception and investment option. .o it is worth which will the
market move and what could be the winning strategies. Basic premise is clear
that “2i:e insu+/n7e is / s?e7i/2iHed business8.
LI(E INSURERS
@. BA2A2 A66&A,Q 6&(/ &,.0"A,'/ '3.6T4.
G. B&"6A .0,6&(/ &,.0"A,'/ '3. 6T4.
D. 74(' .TA,4A"4 6&(/ &,.0"A,'/ '3. 6T4.
F. &'&'& #"04/,T&A6 6&(/ &,.0"A,'/ '3. 6T4.
E. &,) -5.5A 6&(/ &,.0"A,'/ '3.#-T.6T4.
I. 6&(/ &,.0"A,'/ '3"#3"AT&3, 3( &,4&A.
P. MAL ,/=53"9 6&(/ &,.0"A,'/ '3. 6T4.
N. M/T6&(/ &,4&A &,.0"A,'/ '3. #-T.6T4.
H. 93TA9 MA7&,4"A 364 M0T0A6 6&(/ &,.0"A,'/ '3.
6T4.
@A. .B& 6&(/ &,.0"A,'/ '3.6T4.
@@. TATA A&) 6&(/ &,.0"A,'/ '3.6T4.
@G. A-&-A 6&(/ &,.0"A,'/ '3. 6T4.
@D. .A7A"A 6&(/ &,.0"A,'/ '3. 6T4.
Li:e Insu+/n7e Com?/nies
ICICI P+udenti/2 Li:e Insu+/n7e Com?/nD Limited
&'&'& #rudential 6i!e &nsurance 'ompany 6imited was incorporated on 2uly
GA1GAAA.The authori%ed capital o! the company is "s GDAA million and the paid up
capital is "s @EAA million. The 'ompany is joint o! &'&'& JPFO; and #rudential
plc 09 JGIO;
The company was granted certi!icate o! registration !or carrying out li!e insurance
business1 by the insurance regulatory and development Authority on ,ovember
GF1GAAA.it commenced commercial operations on 4ecember @H1 GAAA1becoming
one o! the !irst !ew private sector players to enter the liberali%ed arena. &'&'&
#rudential collected "s.@ENF corers as their premium during GAAF-AE ? the
market share o! &'&'& pru. as per their premium is E.IDO as a whole but in the pvt
.co .&'&'& hold FAO o! market share.
IN& VYSYA LI(E INSURANCE C')PANY PVT, LTD,
&,) -ysya 6i!e &nsurance is a joint venture between three
pioneers1 &,) &nsurance -ysya Bank.
IN& &+ou?: 3ver the last @EA years1 &,) )roup has grown to become one o! the
largest li!e insurance organi%ations in the world. Today it touches the lives o! over
EA millions people across IE countries. &t o!!ers a range o! !inancial services
including insurance1 pensions1 banking and asset management. &n the year
GAAA1total assets o! the group stood at over &," GN1FGAAA corers.
1'TA1 )AHINDRA LI(E INSURANCE C')PANY LTD,
9otak Mahindra li!e &nsurance 'ompany 6imited is a joint
venture between 9otak Mahindra (inance 6td and 3ld Mutual.
1ot/- )/.ind+/ (in/n7e Ltd,
9otak Mahindra is one o! the &ndias leading !inancial
institutions1 o!!ering complete !inancial solution that encompasses every sphere o!
li!e. (rom Banking1 to stock Broking1 to Mutual (unds1 to 6i!e &nsurance1 to
&nvestment Banking1 the company caters to the !inancial needs o! individuals and
corporates.
'2d )utu/2
3ld Mutual1 a company with over @EP years o! experience in li!e
insurance business1 has the largest !inancial services business in .outh A!rica1
through its li!e assurance1 asset management1 banking and general insurance
operations. Being listed in 6ondon .tock /xchange and included in (T./ @AA list
o! companies1 old Mutuals assets under management are worth RGAN billion.
T/t/ AI& Li:e Insu+/n7e Com?/nD:
Tata A&) )eneral &nsurance 'ompany 6td and Tata A&) 6i!e &nsurance 'ompany
6td Jcollectively “Tata A&)8; are joint venture companies between the Tata group
&ndias most trusted industrial house and American &nternational grouping JA&);1 the
leading 0.. based international insurance and !inancial services organi%ation.
Both promoters have a deep and abiding interest in &ndias &nsurance sector. #rior to
nationali%ation1 the Tantas pioneered private insurance in &ndia when .ir 4orab Tata
set
up new &ndia assurance in @[email protected] @HPD1when )eneral &nsurance was nationali%ed
the Tata company had a global presence with EI overseas o!!ices. Aig too has always
considered the &ndian insurance sector to be o! signi!icance. The A&) companies
entered &ndia in @HEF and had o!!ices in several &ndian cities prior to nationali%ation.
HD(C ISt/nd/+d Li:e:
HD(C .tandard 6i!e &nsurance company is a joint venture between &ndias
largest housing !inance provider1 74(' and /uropes largest mutual li!e assurance
company The .tandard 6i!e Assurance 'ompany J09;. 74(' .tandard 6i!e
&nsurance 'ompany 6imited is the !irst private sector li!e insurance company to be
granted a license.
.tandard 6i!e1 091 !ound in @NGE. The 09 insurance industry !or @PE years
by combining sound !inancial judgment with integrity and reliability. &t is the largest
mutual li!e company in /urope and has total assets o! "s.E1EA1AAA crore sit is one o!
the very !ew insurance companies in the world to have CAAA rating !rom two o! the
leading international credit rating agencies1 Moody and .tandard and #oors. .tandard
6i!e was recently voted Ccompany o! the decade in 09 by the independent Brokers
called &(As.
LI(E INSURANCE C'RP'RATI'N '( INDIA (LIC%
The 6i!e &nsurance 'orporation J6&'; was established about FH Jin@HEI;
years ago with a view to provide an insurance cover against various risks in li!e .A
monolith then1 the corporation1 enjoyed a monopoly status and become
synonymous with li!e insurance.&ts main asset is its sta!! strength o! @.GF lakhs
employees and GAFN branches and over six-lakh agency !orce. 6&' has hundred
divisional o!!ices and has established extensive training !acilities at all levels .At
the apex1 is the Management 4evelopment &nstitute1 .even Qonal Training centers
and DE .ales Training 'enters.
At the industry level1 along with the )overnment and )&'1 it has helped established
the ,ational &nsurance Academy. &t presently transacts individual li!e insurance
businesses1 group insurance businesses1 social security schemes and pensions1
grants housing loans through its subsidiaryB and markets saving and investment
products through its mutual !und. &t payo!! about "s IAAA crore annually to E.I
million policyholders. Market share o! 6&' which is NG.DO.By the 6&' @.AH crores
policies has been sold that was in the GAAF-AE ? the total premium that are
collected by 6&' in GAAF-AE was "s.HAAP crores.
ALLIANJ BAJAJ LI(E INSURANCE C')PANY
Allian% A) with over @@A years o! experience in over PA countries and Bajaj
Auto1 trusted !or over EE years in the &ndian market 1together are committed to
o!!ering !inancial solutions.
'haracteri%ed by global presence with a local !ocus and driven by
customer orientation to establish high earnings potential and !inancial strength1
Allian% Bajaj 6i!e &nsurance 'o 6td was incorporated on @G
th
March [email protected]
company received the insurance regulatory and development Authority J&"4A;
'erti!icate o! "egistration on D
rd
August GAA@ to conduct 6i!e &nsurance business in
&ndia. The Market share o! Bajaj Allian% in GAAD-AF was .HEO which has been
increases in GAAF-AE and it is know G.ADO which depicts the !inancial position o!
the co.
CHAPTER#5
C')PANY PR'(ILE
&ndias ,umber 3ne private li!e insurer1 &'&'& #rudential 6i!e &nsurance 'ompany is a joint
venture between &'&'& Bank-one o! &ndias !oremost !inancial services companies-and
#rudential plc- a leading international !inancial services group head$uartered in the 0nited
9ingdom. Total capital in!usion stands at "s. GA.IA billion1 with &'&'& Bank holding a stake
o! PFO and #rudential plc holding GIO.
=e began our operations in 4ecember GAAA a!ter receiving approval !rom &nsurance
"egulatory 4evelopment Authority J&"4A;. Today1 our nation-wide team comprises o! over
ENA o!!ices1 over GDF1AAA advisorsB and GG bancassurance partners.
&'&'& #rudential was the !irst li!e insurer in &ndia to receive a ,ational &nsurer (inancial
.trength rating o! AAA J&nd; !rom (itch ratings. (or three years in a row1 &'&'& #rudential has
been voted as &ndias Most Trusted #rivate 6i!e &nsurer1 by The /conomic Times M A'
,ielsen 3") Marg survey o! CMost Trusted Brands. As we grow our distribution1 product
range and customer base1 we continue to tirelessly uphold our commitment to deliver world-
class !inancial solutions to customers all over &ndia.
The &'&'& #rudential edge comes !rom our commitment to our customers1 in all that we do M
be it product development1 distribution1 the sales process or servicing. 7eres a peek into what
makes us leaders.
Vision Values
'u+ Bision:
To make &'&'& #rudential the dominant 6i!e and #ensions player built on trust by world-class
people and service.
This we hope to achieve by:
0nderstanding the needs o: 7ustome+s and o!!ering them superior products and
service
6everaging te7.no2oED to service customers $uickly1 e!!iciently and conveniently
4eveloping and implementing superior +is- m/n/Eement /nd inBestment
st+/teEies to o!!er sustainable and stable returns to our policyholders
#roviding an enabling environment to !oster growth and learning !or our em?2oDees
And above all1 bui2dinE t+/ns?/+en7D in all our dealings.
The success o! the company will be !ounded in its un!linching commitment to E core values M
&ntegrity1 'ustomer (irst1 Boundary less1 3wnership and #assion. /ach o! the values describe
what the company stands !or1 the $ualities o! our people and the way we work.
=e do believe that we are on the threshold o! an exciting new opportunity1 where we can play
a signi!icant role in rede!ining and reshaping the sector. )iven the $uality o! our parentage
and the commitment o! our team1 there are no limits to our growth.
'u+ B/2ues :
/very member o! the &'&'& #rudential team is committed to E core values: &ntegrity1
'ustomer (irst1 Boundary less1 3wnership1 and #assion. These values shine !orth in all we do1
and have become the keystones o! our success.
@. 3ur products have been developed a!ter a clear and thorough understanding o! customers
needs. &t is this research that helps us develop /ducation plans that o!!er the ideal way to truly
guarantee your childs education1 "etirement solutions that are a hedge against in!lation and
yet promise a !ixed income a!ter you retire1 or 7ealth insurance that arms you with the !unds
you might need to recover !rom a dreaded disease.
G. 7aving the right products is the !irst step1 but its e$ually important to ensure that our
customers can access them easily and $uickly. To this end1 &'&'& #rudential has an advisor
base across the length and breadth o! the country1 and also partners with leading banks1
corporate agents and brokers to distribute our products
D. "obust risk management and underwriting practices !orm the core o! our business. =ith
clear guidelines in place1 we ensure e$uitable costing o! risks1 and thereby ensure a smooth
and hassle-!ree claims process.
F. /ntrusted with helping our customers meet their long-term goals1 we adopt an investment
philosophy that aims to achieve risk adjusted returns over the long-term.
E. 6ast but de!initely not the least1 our @I1AAA plus strong team is given the opportunity to
learn and grow1 every day in a multitude o! ways. =e believe this keeps them engaged and
enthusiastic1 so that they can deliver on our promise to cover you1 at every step in li!e.
Promoters
ICICI B/n-
ICICI B/n- (NYSE:IBN% is &ndias second largest bank and largest private sector bank with
over EA years presence in !inancial services and with assets o! over "s DFFI.EN bn J0.4 PH
billion; as on March D@1 GAAP. The Bank o!!ers a wide range o! banking products and
!inancial services to corporate and retail customers through a variety o! delivery channels and
through its D@peciali%ed subsidiaries in the areas o! investment banking1 li!e and non-li!e
insurance1 private e$uity and asset management. &'&'& Bank is a leading player in the retail
banking market and services its large customer base through a network o! over HEA branches
and extension counters1 DDAA ATMs1 call centers and internet banking Jwww.icicibank.com; to
ensure that customers have access to its services at all times.
P+udenti/2 P27
/stablished in 6ondon in @NFN1 #rudential plc1 through its businesses in the 09 and /urope1
the 0. and Asia1 provides retail !inancial services products and services to more than GA
million customers1 policyholder and unit holders and manages over SGE@ billion o! !unds
worldwide Jas o! D@ 4ecember GAAI;. &n Asia1 #rudential is the leading /uropean li!e
insurance company with li!e operations in 'hina1 7ong 9ong1 &ndia1 &ndonesia1 2apan1 9orea1
Malaysia1 the #hilippines1 .ingapore1 Taiwan1 Thailand1 -ietnam. #rudential is the second
largest retail !und manager !or Asian sourced assets ex-2apan as at 2une GAAI. &ts !und
management business has expanded into a total o! ten markets : 'hina1 7ong 9ong1 &ndia1
2apan1 9orea1 Malaysia1 .ingapore1 Taiwan1 -ietnam and 0nited Arab /mirates.
!act "heet
THE Com?/nD
&'&'& #rudential 6i!e &nsurance 'ompany is a joint venture between &'&'& Bank1
a premier !inancial powerhouse1 and #rudential plc1 a leading international
!inancial services group head$uartered in the 0nited 9ingdom. &'&'& #rudential
was amongst the
!irst private sector insurance companies to begin operations in 4ecember GAAA
a!ter receiving approval !rom &nsurance "egulatory 4evelopment Authority
J&"4A;.
&'&'& #rudential>s capital stands at "s. GA.IA billion with &'&'& Bank and
#rudential plc holding PFO and GIO stake respectively. As o! March D@1 GAAP1 the
company garnered "s. F1NFD crore o! weighted retail T group new business
premiums and wrote over @.HI million retail policies. The company has assets held
to the tune o! over "s. @E1AAA crore.
&'&'& #rudential is also the only private li!e insurer in &ndia to receive a ,ational
&nsurer (inancial .trength rating o! AAA J&nd; !rom (itch ratings. The AAA J&nd;
rating is the highest rating1 and is a clear assurance o! &'&'& #rudential>s ability to
meet its obligations to customers at the time o! maturity or claims.
(or the past six years1 &'&'& #rudential has retained its position as the ,o. @
private li!e insurer in the country1 with a wide range o! !lexible products that meet
the needs o! the &ndian customer at every step in li!e. To know more about the
company1 please visit
Dist+ibution
&'&'& #rudential has one o! the largest distribution networks amongst private li!e
insurers in &ndia. As o! March D@1 GAAP the company has over ENA o!!ices across
the country and over GDF1AAA advisors.
The company has over GG bancassurnace partners1 having tie-ups with &'&'& Bank1
(ederal Bank1 .outh &ndian Bank1 Bank o! &ndia1 6ord 9rishna Bank1 &dukki
4istrict 'o-operative Bank1 2algaon #eoples 'o-operative Bank1 .hamrao -ithal
'o-op Bank1 /rnakulam Bank1 H Bank o! &ndia sponsored "egional "ural Banks
J""Bs;1 .angli 0rban 'o-operative Bank1 Baramati 'o-operative Bank1 Ballia
9shetriya )ramin Bank1 The 7aryana .tate 'o-operative Bank.
(2e0ib2e Ride+ '?tions
&'&'& #ru 6i!e o!!ers !lexible riders1 which can be added to the basic policy at a
marginal cost1 depending on the speci!ic needs o! the customer.
@.
Accident & disai!it" ene#t$ If death ours as the result of
an aident durin# the term of the poli$% the &ene'iar$
reeives an additional amount e(ual to the rider sum assured
under the poli$. If an aident results in total and permanent
disa&ilit$% )*+ of rider sum assured will &e paid eah $ear%
from the end of the )st $ear after the disa&ilit$ date for the
remainder of the &ase poli$ term or )* $ears% whihever is
lesser. If the death ours while travelin# in an authori,ed mass
transport vehile% the &ene'iar$ will &e entitled to twie the
sum assured as additional &ene't.
G.
Critica! I!!ness %ene#t$ protets the insured a#ainst 'nanial
loss in the event of - spei'ed ritial illnesses. Bene'ts are
pa$a&le to the insured for medial e.penses prior to death.
D.
Waiver &' Pre(iu($ In ase of total and permanent disa&ilit$
due to an aident% the future premiums ontinue to &e paid &$
the ompan$ till the time of maturit$. This rider is availa&le
with LifeTime Super% LifeTime Super Pension and CashPlus.
About t.e P+omote+s
ICICI B/n- J,5./:&B,; is &ndia>s second largest bank and largest private sector
bank with over EA years presence in !inancial services and with assets o! over "s
DFFI.EN bn J0.4 PH billion; as on March D@1 GAAP. The Bank o!!ers a wide range
o! banking products and !inancial services to corporate and retail customers
through a variety o! delivery channels and through its specialised subsidiaries in
the areas o! investment banking1 li!e and non-li!e insurance1 private e$uity and
asset management. &'&'& Bank is a leading player in the retail banking market and
services its large customer base through a network o! over HEA branches and
extension counters1 DDAA ATMs1 call centers and internet banking
www.icicipruli!e.com to ensure that customers have access to its services at all
times.
/stablished in 6ondon in @NFN1 #rudential plc1 through its businesses in the 09
and /urope1 the 0. and Asia1 provides retail !inancial services products and
services to more than GA million customers1 policyholder and unit holders and
manages over SGE@ billion o! !unds worldwide Jas o! D@ 4ecember GAAI;. &n Asia1
#rudential is the leading
/uropean li!e insurance company with li!e operations in 'hina1 7ong 9ong1 &ndia1
&ndonesia1 2apan1 9orea1 Malaysia1 the #hilippines1 .ingapore1 Taiwan1 Thailand1
-ietnam. #rudential is the second largest retail !und manager !or Asian sourced
assets ex-2apan as at 2une GAAI. &ts !und management business has expanded into a
total o! ten markets : 'hina1 7ong 9ong1 &ndia1 2apan1 9orea1 Malaysia1
.ingapore1 Taiwan1 -ietnam and 0nited Arab /mirates.
The &'&'& #rudential 6i!e &nsurance 'ompany 6imited Management team comprises
reputed people !rom the !inance industry both !rom &ndia and abroad.
)s, S.i-./ S./+m/, Managing 4irector ? '/3
)+, N, S, 1/nn/n, /xecutive 4irector
)+, B./+E/B D/sEu?t/, /xecutive 4irector
)s, Anit/ P/i, /-# M 'ustomer .ervice ? Technology
)+, AHim )it./ni, 'hie! Actuary
)+, Puneet N/nd/, 'hie! &nvestments 3!!icer
)+, Bin/D/- Dutt/, 'hie! M .ales and distribution
Mr. ,. .. 9annan
/xecutive 4irector
&'&'& #rudential
6i!e &nsurance 'ompany 6imited
,. .. 9annan joined &'&'& #rudential 6i!e &nsurance 'ompany 6td as /xecutive 4irector
in August GAAE1 where he has overall responsibility !or sales1 marketing1 investments1
group business and business intelligence. #rior to joining &'&'& #rudential1 9annan was
the 'hie! (inancial 3!!icer and Treasurer o! &'&'& Bank 6imited where he was
responsible !or investor relations and !or the !inance1 per!ormance management1 accounts1
taxation1 risk management1 secretarial and credit middle o!!ice !unctions. The treasury
operations o! &'&'& Bank include Balance .heet Management and Asset and 6iability
Management. &'&'& Bank is the second largest bank in &ndia with an asset base o! about
0.R EE billion. The bank is listed on &ndian national stock exchanges and the ,ew 5ork
stock exchange. 9annan joined &'&'& group in @HH@ as a project o!!icer. 4uring his
tenure at &'&'& group1 he has handled project !inance operations1 in!rastructure !inancing1
structured !inance and treasury operations. #rior to his current assignment1 he has headed
the Telecom ? Transportation group and .tructured (inance group o! the bank.9annan is
a postgraduate in management !rom the &ndian &nstitute o! Management1 Bangalore with a
gold medal !or best all-round per!ormance. 7e is also a 'hartered (inancial Analyst !rom
the &nstitute o! 'hartered (inancial Analysts o! &ndia and an 7onours graduate in
Mechanical /ngineering. 7is work experience includes D years o! industrial experience
with a large engineering group in &ndia.
S9'T ANALYSIS '( ICICI PRUDENTIAL
STREN&THS
• &'&'& #"04/,T&A6 is the largest private player in the insurance industry in
&ndia1 with a market share o! around DIO amongst the private players.
• &'&'& #"04/,T&A6 has deposited a paid up capital o! "s. HGE crores with
&"4A as a caution deposit1 the highest amongst all the li!e insurance
companies in &ndia whereas 6&' has deposited only IA crores so !ar.
• &'&'& #"04/,T&A6 is the !irst li!e insurance company to o!!er /'. debit
!acility.
• &'&'& #"04/,T&A6 is the !irst company to introduce unit linked li!e
insurance and pension products. #resently the maximum numbers o! ranges
are under 06&# like li!e insurance1 investment as well as pension plans.
• &ts -enture !unds management co. 6td is &ndias largest venture capital
company.
• #"340'T.:
? (lexibility to switch your !und value at your own discretion F times a
year
-i% Maximiser1 #rotector1 Balancer1 #reserver.
? )reater transparency- policyholder knows what is happening to his
money and where the company has invested the money.
? 6i$uidity option: you can make partial or complete withdrawals
anytime a!ter D years.
? 6i!e insurance plans are eligible !or deduction under .ec. NA'.
? The proceeds or withdrawals o! li!e insurance policies are exempt
under .ec @AJ@A4;1 subject to norms prescribed in that section.
? "iders are provided to give the policyholder the additional protection
at marginal cost- Accident and 4isability rider1 'ritical &llness "ider1
Accidental bene!it rider.
? 6oan against the policy
: A!ter the policy has ac$uired a surrender value
one can avail loan against the policy.
9EA1NESSES
• &ndustry in nascent stage.
• "ural areas still not covered.
• ,ot very well known among the &ndian population.
• 6ack o! credibility in the public because &'&'& being a private player.
• #remiums are high as compared to its competitors.
• -ery !ew branches in the country.
• #"340'T.:
? The policy doesnt have the surrender option be!ore the D
rd
year.
? #lan do not o!!er any guarantee or assured return
? The product pro!ile is not very comprehensive.
? Mortality1 management and administrative charges are sky-scraping as
compared to its competitors.
'PP'RTUNITIES
• 6iberali%ation o! &ndian economy.
• As the industry is growing the whole market is virgin.
• The whole private sector is open to be tapped even though the competition is
!ierce !rom government owned insurance companies.
• &ts a volume business that is even i! the company has !ew good corporates
the turnover ceases to increase by mani!old.
• #"340'T.:
? #reserver !und looks good due to com!ortable li$uidity in the economy
and there is little chance o! any hike in short-term rates by "B&.
? (inance minister unveiled a budget-!avoring consumer spending1
boosting demand and there!ore higher economic growth
THREATS
• The )ovt. players will become aggressive thus growth is going to be tough.
• /ntry o! other new players is not ruled out
• Apprehension towards &'&'& #"04/,T&A6 being a private li!e insurance
company.
• =e expect the industry to rationali%e in !uture that is mergers and ac$uisitions
will happen which will impact the industry and &'&'& #"04/,T&A6
!ortunes.
• #"340'T.:
? #ast per!ormance o! these plans is not indicative o! the !uture per!ormance
o! the plan
? The sum invested in the !unds is subject to market risks and there can be
no assurance that the objective o! the plans will be achieved.
? All bene!its payable under the policy are subject to the tax laws and other
!inancial enactment1 as they exist !rom time to time
)EANIN& '( ULIP
A policy1 which provides !or li!e insurance where the policy value at any time varies
according to the value o! the underlying assets at the time. 06&# is li!e insurance
solution that provides !or the bene!its o! protection and !lexibility in investment. The
investment is denoted as units and is represented by the value that it has attained
called as ,et Asset -alue J,A-;.
A ULIP st+u7tu+e 2oo-s 2i-e /s
22oFs:0nit linked
insurance
plans
0nits in
!unds
0nderlying
investment
6ess charge
&nvestment represented as
units
6i!e cover
'ontribution
(EATURES '( ULIP
06&# distinguishes itsel! through the multiple bene!its that it provides to the
consumer. The plan is a one-stop solution providing:
U 6i!e protection
U &nvestment and .avings
U (lexibility
- Adjustable 6i!e 'over
- &nvestment 3ptions
U Transparency
U 3ptions to take additional cover against
- 4eath due to accident
- 4isability
- 'ritical &llness
- .urgeries
U 6i$uidity
U Tax planning
The two strong arguments in !avour o! unit-linked plans are:
• (irstly1 the investor knows exactly what is happening to his money
• .econdly it allows the investor to choose the assets into which he wants his
!unds invested.
An investor in a 06&# knows how much he is paying towards mortality1 management
and administration charges. 7e also knows where the insurance company has invested
his money.
The investor gets exactly the same returns that the !und earns but he also bears the
investment risk. The transparency makes the product more competitive. .o i! you are
willing to bear the investment risks in order to generate a higher return on your
retirement !unds 06&#s are !or you. Traditional KFit. ?+o:its= policies too invest in
the market and
generate the same returns prevailing in the market. But here the insurance company
evens out returns to ensure that policyholders do not hold money in a bad year. &n that
sense they are sa!er. 06&#s also o!!er !lexibility. (or instance a policyholder can ask
the insurance company to li$uidate units in his account to meet to mortality charges i!
he is unable to pay any premium installment. This eats into savings but ensures that
the policy will continue to cover his li!e.
06&# came into play in the @HIAs and became very popular in =estern /urope and
Americas. The reason that is attributed to the wide spread popularity o! 06&# is
because o! the transparency and the !lexibility which it o!!ers. 0nit- linked plans are a
contemporary product: transparent and !lexible. &ndividuals have greater control over
their investments. The popularity o! 06&#. stems !rom the !act that they o!!er
customers “integrated !inancial solutions with a transparent charge structure8. &n
todays times1 06&# provides solutions !or insurance planning1 !inancial needs1
!inancial planning !or childrens !uture and retirement planning. 0nit-linked insurance
plans J06&#s; have become something o! a rage with their >promise> o! market-linked
returns combined with the dual bene!it o! insuring your li!e !rom eventualities.
9.D do insu+e+s ?+e:e+ ULIPsG
&nsurers love 06&#s !or several reasons. Most important o! all1 insurers can sell these
policies with lesser capital o! their own than what would be re$uired i! they sold
traditional policies. &n traditional KFit. ?+o:its= policies the insurance company bears
the investment risk to the extent o! insured amount. &n 06&#s the policyholder bears
most o! the investment risk. .ince 06&#s are designed to mobili%e savings1 they give
insurance companies an opportunity to get a large chunk o! asset management
business which has been traditionally dominated by mutual !unds. 06&#s are suitable
!or individuals who are already ade$uately insured and are reasonably well-in!ormed
and savvy to take active investment decisions by using the Vswitch option> that is
provided to a 06&# policyholder. Also policyholders with regular endowment plans
who are not satis!ied with the F-IO returns can consider taking a 06&# with a lower
e$uity component. &t is best i! insurance-seekers tread the middle path and choose
balanced plans Jwith about EA-IAO e$uity
component;. &deally they need to avoid taking the aggressive @AAO e$uity 06
which could needlessly expose their assets to market volatility. .o i! insurances-
seekers*investors play their cards right1 they can make this marriage work.
9'R1IN& '( UNIT LIN1ED INSURANCE PLANS
UNIT LIN1ED PLANS
SUPER S)ART 1ID
Sm/+t1id o!!ers an exclusive choice o! D education insurance plans: .mart9id ,ew
0nit-linked "egular #remium1 .mart9id ,ew 0nit-linked .ingle #remium and
.mart9id "egular #remium. Take a look at the !eatures and bene!its o! each plan:
@. .mart9id ,ew 0nit-linked "egular #remium
.mart9id ,ew 0nit-linked "egular #remium is a unit-linked plan1 which enables you
and your child to accumulate wealth by virtue o! the per!ormance o! the underlying
market-linked instrument. Take a look at the !eatures o! the plan:
P+emium: The minimum premium to be invested is "s. @A1AAA per annum. A!ter
deducting premium allocation charges !rom the premium1 the remaining amount will
be invested in a !und o! your choice.
Sum Assu+ed: The minimum .um Assured that the policyholder can opt !or is Term W
Annual #remium*G1 subject to a minimum o! "s @ 6ac
Po2i7D te+m: The term o! the policy will be calculated as the di!!erence between your
child>s current age and the age o! your child when the policy matures.
)o+t/2itD, Po2i7D Administ+/tion 7./+Ees: These and other charges will be deducted
!rom the units in the !und.
G. .mart9id ,ew 0nit-linked .ingle #remium
.mart9id ,ew 0nit-linked .ingle #remium works in much the same way as
.mart9id ,ew 0nit-linked "egular #remium policy mentioned above. The only
di!!erent !eature is the premium amount-you will be re$uired to pay only a single
premium1 which starts at as low as "s. EA1AAA.
Addition/2 (e/tu+es /nd Bene:its Common to A22 5 P2/ns
ReEu2/+ ?/Douts: As your child approaches key educational milestones such as @Gth
standard or graduation exams1 he or she will receive regular payouts1 guaranteeing he
or she continues to study1 no matter what the circumstance.
De/t. Bene:it: 5our child will receive the .um Assured immediately1 should
something happen to you. &'&'& #rudential will pay the remaining premiums1
ensuring your child continues to receive policy bene!its1 as always.
In7ome Bene:it Ride+: 5ou can choose to add the bene!its o! this rider to your child>s
education plan. .hould you depart be!ore your son>s or daughter>s education is
complete1 you child will receive @AO o! "ider .um Assured1 !or the balance term o!
the policy.
Add#on +ide+s: >Accidental 4eath and 4isability "ider> and >=aiver o! #remium
"ider> ensure your child stays doubly protected1 at all times. 5ou can choose to add
these to your child>s education policy.
T/0 bene:its: #remiums you pay !or a .mart9id policy are eligible !or tax savings
Xu*s NAJ';Y. Maturity and death bene!its are eligible !or tax exemptions Xu*s @AJ@A4;Y.
D. .mart9id "egular #remium
(lexible investment option: 'hoose the amount o! premium with which you wish to
sa!eguard your child>s education.
(2e0ib2e ?o2i7D tenu+e: The tenure o! the plan will be calculated as the di!!erence
between your child>s current age and his or her age at which the policy matures.
(2e0ib2e ?+emium o?tions: The premium will be calculated based on D !actors: .um
Assured1 policy tenure and your age.
&u/+/nteed bonus: A guaranteed bonus o! D.EO per annum is declared !or the !irst F
premium paying years plus an annual vested bonus declared in subse$uent years.
6i!e6ink .uper
=ell-deserved !inancial incentives1 rewarding business pro!its and even ancestral
money are precious amounts that you should invest immediately so they earn you
potentially higher returns in the long run.
&nvest in &'&'& #rudential>s 6i!e6ink .uper policy-a single-premium unit-linked
policy
that works best !or investors who have in mind long-term !inancial goals1 such as the
education o! a child or the purchase o! a larger home.
Apart !rom the potentially higher returns that you can earn1 6i!e6ink .uper insures
your !amily against mis!ortunes with its protective insurance cover.
"ead more about the !eatures and bene!its o! this plan1 right away.
#i$e#ink "u%er at a glance
!eatures and &ene$its o$ #i$e#ink "u%er
o?tions o: Sum Assu+ed: 'hoose to receive either @GEO or EAAO o! the single
premium amount.
(2e0ib2e ?o2i7D te+m: 4ecide how long you wish to invest in this policy. 5ou can
invest !or a minimum o! E years and keep your investment growing !or as long as you
wish a!ter that.
P/+ti/2 Fit.d+/F/2 o: moneD: =ithdraw !unds in installments !rom the Fth year
onwards.
Att+/7tiBe ?+emium /22o7/tion +/tes: /njoy @AAO allocation !or premium amounts
e$ual to or greater than "s. E lacs.
4 inBestment :unds: .elect among (lexi-)rowth1 Maximiser1 (lexi-Balanced1
Balancer1
#rotector1 and #reserver1 based on your !inancial goals and risk pro!ile.
SFit7. bene:it: .witch between !unds anytime to maximi%e on market movements.
5ou can switch !unds F times a year1 at no cost. (or subse$uent switches1 you will be
re$uired to pay a switch !ee o! "s. @AA.
Minimum*Maximum /ntry Age
Maximum Age at #olicy Maturity
Minimum #olicy Term
Minimum .ingle #remium
Minimum .um Assured
Tax Bene!it
A years to IE years
PA years
E years
0p to age FF: "s. GE1AAA1 age FE and above: "s.
EA1AAA
Annual #remium x Term*G. .ubject to a
minimum o! "s. @1AA1AAA
#remium payment up to GAO o! the .um
Assured is eligible !or bene!it under .ec. NA'.
Any amount paid to you will be eligible !or tax
bene!its under .ec. @A J@A4; exemption1 i!
premium paid in any year does not exceed GAO
o! the .um Assured.
)/tu+itD bene:it: "eceive the (und -alue when your policy matures. 'hoose to take
this value as a single lump-sum amount or in monthly1 bi-annual or annual
installments spread over @ to E years.
De/t. bene:it: 5our !amily receives the higher o! (und -alue or .um Assured should
something happen to you.
Wh' #i$eTime "u%er
As an individual who desires a lot !rom li!e-a car1 a beauti!ul home and o! course1 the
com!ort and contentment o! your !amily-you would undoubtedly want to plan your
!inances such that you can take care o! all your re$uirements.
&nvest in &'&'& #rudential>s 6i!eTime .uper policy-a regular-premium unit-linked
policy1 which o!!ers potentially higher returns that systematically enable you to meet
your long-term !inancial objectives. &n addition1 6i!eTime .uper also provides the
protective bene!it o! an insurance cover1 which keeps your !amily secure1 always.
"ead more about the !eatures and bene!its o! this plan.
#i$eTime "u%er at a glance
!eatures and &ene$its o$ #i$eTime "u%er
(2e0ib2e ?o2i7D te+m: 4ecide !or how long you want your policy. 5ou can invest !or a
minimum o! @A years and a maximum o! PE years.
5 7.oi7es o: ?+emium ?/Dment: 3pt to pay the premium on a monthly1 bi-annual or
an annual basis.
4 inBestment :unds: .elect among (lexi-)rowth1 Maximiser1 (lexi-Balanced1
Balancer1 #rotector1 and #reserver1 based on your !inancial goals and risk pro!ile.
SDstem/ti7 Fit.d+/F/2 o: moneD: =ithdraw money in installments !rom the Fth
year onwards.
)/tu+itD bene:it: "eceive the (und -alue when your policy matures. 'hoose to take
this value as a single lump-sum amount or in monthly1 bi-annual or annual
installments.
De/t. bene:it: 5our !amily receives the higher o! (und -alue or .um Assured should
something happen to you.
SFit7. bene:it: .witch between !unds anytime to adjust your port!olio1 based on your
Minimum*Maximum /ntry Age
Maximum Age at #olicy Maturity
Minimum*Maximum #olicy Term
#remium #ayment (re$uency
Minimum #remium
Minimum .um Assured
Tax Bene!it JN;
A years to IE years
PE years
@A years to PE years
Monthly1 hal!-yearly1 yearly
"s. @N1AAA per annum
Annual #remium x Term*G. .ubject to a
minimum o! "s. @1AA1AAA
#remium paid !or the policy and critical illness
bene!it rider will be eligible !or tax bene!it
under .ec. NA' and NA4 respectively. Any
amount paid to you will be eligible !or tax
bene!its under .ec. @A J@A4; as per prevailing
&ncome Tax laws.
goals and risk pro!iles. 5ou can switch !unds F times a year1 at no cost. (or subse$uent
switches1 you will be re$uired to pay a switch !ee o! "s. @AA.
R'LE '( AN ADVIS'R IN UNIT LIN1ED INVEST)ENT PLANS
&t is important !or us to know that what is the role that an advisor will play. At &'&'&
#rudential1 you are an advisor is to
@. #rovide ongoing !inancial advice !or his*her clients: 5ou are an advisor and just
like a lawyer or a doctor you advice the client about insurance and !inance.
G. &denti!y !uture clients: 6i!e insurance is a business o! contacts an the advisor
constantly need to know people so that his business expands.
D. 'onstantly make appointments: 2ust making contacts will not be enough to
develop a good li!e insurance business.
F. Advisor needs to meet these contacts and thus should make appointments on
constantly.
E. 'onduct !inancial review meetings with prospects* clients: As an advisor it is
necessary to meet with client not only !or the purpose o! selling but also to
review the need o! the client and prospects. Many people would not be in !or li!e
insurance today but as time moves they can be re$uiring one. .imilarly an
existing client may also be in need o! more insurance as responsibilities and
liabilities increase.
'lose sale:
0ltimately success is de!ined as sales. The advisor should lead each
appointment towards a sale and close it e!!ectively where in the client is happy
on purchasing the insurance solution and !eels satis!ied with it.
CHAPTER#@
RESEARCH )ETH'D'L'&Y
"esearch Methodology has many dimensions1 it include not only research
methods but also considers the logic behind the methods used in the context o! the
study and explains why only a particular method o! techni$ue had been used so that
research lend themselves to pXroper evaluations. Thus in a way it is a written game
plan !or concluding research there!ore in order to solve research problem it is
necessary to design a research methodology !or the problem as the same may di!!er
!rom problem to problem. "esearch design is the conceptual structure within which
the research is conducted. &ts !unctions are to provide !or the collection o! relevant
evidence with minimum expenditure o! e!!ort1 time and money. But1 how this can be
achieved depends on the research purpose. &n my study the research purpose is
exploratory study i.e. to gain !amiliarity with phenomena or to achieve new insights in
it.
MA"9/T "/./A"'7 4/.&), : 4escriptive type
4ATA .30"'/. : #rimary source
"/./A"'7 A##"3A'7 : .urvey method
"/./A"'7 &,.T"0M/,T : Zuestionnaire
T5#/ 3( Z0/.T&3,. : 'lose-ended
.AM#6/ .&Q/ : @AA samples
M34/ 3( '366/'T&,) 4ATA: "espondents to be chosen randomly.
SA)PLE DESI&N:
.ocial phenomenon being very vast1 it becomes impossible to contact each and every
individual o! population due to limitation o! essential resources like time and money.
There!ore1 the study is pre!erably narrowed down to a representative sample to make
the study more manageable. Zuota sampling is adopted in the exploratory study. &t is a
non-probability study in which various insurance players are taken.
SA)PLIN& UNIT:
The data can be collected !rom primary sources. The basic premises o! my study are
primary data but at the same time it is supplemented with the secondary data.
.ampling unit is a unit which would be considered !or the purpose o! study to conduct
the comparative study o! the &'&'& #rudential and other insurance companies with
special re!erence to 0nit 6ink #lans.
SA)PLIN& SIJE:
&t re!ers to the number o! items to be selected !rom the universal1 to constitute a
sample. To commence the study various insurance players are taken.
H'9 DID I &' AB'UT THE PR'JECT:-
SA)PLE SIJE
A sample si%e o! @AA customers was selected to do this project1 which was random
sampling keeping in mind the basic criteria.
(IELD 9'R1
The research was done !or a period o! G months in Jstudents1 government employee ?
other; ambala. & started with )Y )AR1ET $!! and therea!ter & used to give cold
calls !rom the companys database and i! seemed interested & take along with me the
representatives o! the company !or !urther in!ormation gathering.
@; StudD o: Se7ond/+D D/t/: The $uickest and the most economical way !or
researchers to !ind possible hypothesis is to take the advantage o! the work done
earlier and thus utili%e their e!!orts.
G; In#de?t. Inte+BieFs: & used in-depth interviews because it attempts to in!luence
respondents to talk !reely about their subject o! interest .A !ormal $uestionnaire
was made and according to which the $uestions were asked to the respondents.
B/si7 met.ods o: 7o22e7tinE P+im/+D D/t/:
@; Luestionn/i+e )et.od: The $uestionnaire used by me !or the purpose o! data
collection were o! structured type J,on-disguised;.
G; Cont/7t )et.od: &n order to derive in!ormation !rom the intended organi%ation1
it was elementary !or me to search !or a link which could enable me to conduct a
research in that organi%ation.
'BJECTIVE '( THE STUDY
The project undertaken by me as a part o! my .ummar Training o! M.B.A.course is an
e!!ort made to study the 06&# policies and activities in &'&'& #"04/,T&A6 with
special emphasis on unit linked products o! the company.
&n this era o! cut throat competition1 any organi%ation needs to select and retain the
best talent. #eople selected should have positive attitude1 ability to inspire others and
must be dynamic.
T.e m/in obCe7tiBes o: t.is studD /+e:
• =orking o! 0nit linked &nsurance #lans
• .=3T analysis o! the product sold
• 'omparative study with the competitor.
• .tudy tax planning solutions available in the market.
• .tudy asset allocation through insurance plans.
• Market interphase.
CHAPTER#8
C')PARATIVE STUDY 9ITH THE
C')PETIT'RS
LIST:
• 6i!eTime .uper -s 6&' Bima#lus
• 6i!eTime .uper -s Birla .un6i!e 'lassic 6i!e
• 6i!eTime .uper -s 74(' 6inked
• #remier6i!e -s Bajaj Allian% 0nitgain #lus
LI(ETI)E SUPER VS LIC BI)APLUS
(e/tu+es Li:eTime Su?e+ LIC Bim/P2us
Age A M IA years @G - EE years
Term Minimum premium payment term o!
Dyears @A years
.um Assured 'hoose your sum assured1 subject to
a minimum sum assured o! "s. @
lakh
Maximum limit upto "s. G lakhs
.urvival bene!it -alue o! units JDrd year onwards; Bid -alue o! the !und units
along with maturity bonus at EO
o! the .um Assured
4eath bene!it 7igher o! .um Assured or value o!
units.
4eath during the !irst I months -
DAO o! .A T value o! units1 next
I months - IAO o! .A T value o!
units. 4eath a!ter @st year - .A T
value o! units. 4eath during the
@Ath year - @AEO o! .A T value
o! units.
=ithdrawal bene!it #artial or complete withdrawals are
available !rom the Drd year onwards
#remature withdrawal allowed
a!ter one year Ja!ter applying
bid-o!!er spread.
'ontribution Minimum: "s. @N1AAA p.a. ,ot speci!ied
(lexible
contribution
(lexibility to increase or decrease in
contribution ,ot available
&nvestment options Maximiser1 Balancer1 #rotector ?
#reserver. Balanced1 .ecured ? "isk
&ncrease * 4ecrease
o! death bene!it
Available. ,ot available
Bonus units Available ,ot Available.
Top-up Available. Minimum top-up o! "s.
EAAA. 'harges - @O o! top-up.
Available J'harges: @.EO o! the
top-up;
.witch
F !ree switches a year1 with the
minimum switch amount being "s.
GAAA.
,o !ree switches. 'ost o!
switching is GO o! the !und
value.
.urrender value The policy will ac$uire a surrender
value a!ter D complete premium-
paying years. The surrender value is
#artial surrender up to EAO o!
bid value o! units allowed a!ter D
years !rom date o!
@AAO o! the value o! investments. commencement
&nitial 'harge O Allocation o! the premium ,ot 4isclosed
@NAAA- FH1HHH: @st year - NAOB Gnd
year - HG.EO B Drd year onwards -
HIO.
EAAAA and above: @st year - NGOB
Gnd year - HG.EOB Drd year onwards -
HIO.
Admin 'harge ,one ,ot applicable
3ther 'harges ,ot applicable ,ot applicable
(und Management
'harges
The annual administrative and !und
management charge is G.GEO !or
Maximiser1 G.GEO !or Balancer1
@.EAO !or #rotector ? A.PEO !or
#reserver. @O o! the !und per annum
I(ETI)E SUPER VS HD(C LIN1ED
(e/tu+es Li:eTime Su?e+ HD(C Lin-ed
Age A - IA years @N - IA years
Term Minimum premium payment term o!
Dyears
@A - DA years
.um Assured 'hoose your sum assured1 subject to
a minimum sum assured o! "s. @
lakh
3nly E1@A1 GA Jage-based;
multiples are allowed as .um
Assured.
.urvival bene!it -alue o! units JDrd year onwards; -alue o! units
4eath bene!it 7igher o! .um Assured or value o!
units.
7igher o! .um Assured or value
o! units.
=ithdrawal bene!it #artial or complete withdrawals are #artial withdrawal available
available !rom the Drd year onwards !rom the Drd year onwards1
provided that the -alue o! 0nits
does not go below the .um
Assured.
'ontribution Minimum: "s. @N1AAA p.a. Minimum: "s. @A1AAA p.a.
(lexible
contribution
(lexibility to increase or decrease in
contribution.
Available
&nvestment options Maximiser1 Balancer1 #rotector ?
#reserver.
E (und 3ptions- Balancer1
4e!ensive Managed1 .a!e
Managed1 6i$uid ? )rowth
&ncrease * 4ecrease
o! death bene!it
Available. ,ot available
Bonus units Available ,ot available
Top-up Available. Minimum top-up o! "s.
EAAA. 'harges - @O o! top-up.
Available
.witch F !ree switches a year1 with the
minimum switch amount being "s.
GAAA.
.witches are !ree as o! now. But
the company reserves the right
to put a charge on the switches.
.urrender value The policy will ac$uire a surrender
value a!ter D complete premium-
paying years.
The surrender charge is GEO o!
D years outstanding regular
premium. ,o charges a!ter D
years
&nitial 'harge O Allocation o! the premium 'harges
@NAAA- FH1HHH: @st year - NAOB Gnd
year - HG.EOB Drd year onwards -
HIO.
@st yr-GPO1 Gnd yr- GPO1 Drd yr
onwards- @O
EAAAA and above: @st year - NGOB
Gnd year - HG.EOB Drd year onwards -
HIO.
Admin 'harge ,one Admin charges o! "s.@NA !ixed
charge per annum.
3ther 'harges ,ot applicable ,ot applicable
(und Management
'harges
The annual administrative and !und
management charge is G.GEO !or
Maximiser1 G.GEO !or Balancer1
@.EAO !or #rotector ? A.PEO !or
#reserver.
&nvestment charge o! A.NAO o!
the (und -alue across all the
!unds.
"ider A4B"1 '&B" ? M.A" AB" ? '&B"
SUPER PRE)IER LI(E VS BAJAJ ALLIANJ UNIT&AIN PLUS
(e/tu+es Su?e+ P+emie+ Li:e B/C/C A22i/nH UnitE/in P2us
Age @N - IA years A - IA years
Term #remium paying term o! D years1 E
years1 P years or @A years.
Minimum premium payment
term o! D years
.um Assured .um Assured multiple is @ - GE times
the annual premium
Minimum .um Assured is E
times the premium paid.
.urvival bene!it -alue o! units Anytime a!ter payment o! D
!ull year>s premiums.
4eath bene!it 7igher o! .um Assured decreased by
the amount o! withdrawals made or
value o! units.
7igher o! .um Assured or
value o! units
=ithdrawal bene!it #artial withdrawals are available a!ter
the Drd policy year and a!ter payment
o! D years> premiums. 'omplete
withdrawals are available a!ter the @st
year premium. 7owever surrender
penalties will apply.
#artial or complete
withdrawals are available a!ter
the Drd years contribution
'ontribution Minimum: "s. IA1AAA p.a. Minimum: "s. @A1AAA p.a.
(lexible
contribution
Available
Available
&nvestment options Maximiser1 Balancer1 #rotector ? /$uity &ndex (und1 /$uity #lus
#reserver. (und1 4ebt (und1 Balanced
(und1 'ash (und
4ecrease in death
bene!it
Available. Available
Bonus units Available. ,ot available
Top-up Available. Minimum top-up o! "s.
EAAA. 'harges - @O o! top-up.
Available. 'harge are GO o!
the top-up amount
.witch F !ree switches a year. Three !ree switches every year.
.urrender value The policy will ac$uire a surrender
value !rom the @st year onwards.
=ithdrawals are only allowed
a!ter payment o! D !ull year>s
premiums
&nitial 'harges O Allocation o! the premium O Allocation o! the premium
3 year premium payin !erm @st year - PIOB HPO !rom year
G onwards
"s. IA.AAA - "s. F1HH1HHH: @st year:
NPOB Gnd and Drd year: HIO
"s. E1AA1AAA and above: @st year: NHOB
Gnd and Drd year: HIO
"# $ an% &' year premium payin !erm
"s. IA.AAA - "s. F1HH1HHH: @st year:
NNOB Gnd and Drd year: HPOB Fth and
Eth year: HNOBIth year onwards: @AAO
"s. E1AA1AAA and above: @st year: HAOB
Gnd and Drd year: HPOB Fth and Eth
year: HNOB Ith year onwards: @AAO
Admin 'harge Admin charge o! "s. IA * month Annual admin charges o! "s.
GA
(und Management
'harges
The annual investment charge is @.EAO
!or Maximiser1 @.AAO !or Balancer1
A.PEO !or #rotector ? #reserver.
@.EO p.a. !or a /$uity #lus
(und1 @O p.a. !or /$uity &ndex
(und1 ,o speci!ic charges in
case o! Balanced (und1 A.PO
p.a. !or 4ebt #lus (und and
A.PO in case o! 'ash #lus
(und.
"ider A4B" ? '&B" AB"1 A4B"1 '& ? 7ospital
'ash Bene!it
STUDY TA> PLANNIN& S'LUTI'NS
AVAILABLE IN THE )AR1ET
TA> BENE(ITS 'N INSURANCE AND PENSI'N
6i!e insurance and retirement plans are e!!ective ways o! saving taxes. The tax breaks
that are available under various insurance and pension policies are described below:
• 6i!e insurance plans are eligible !or deduction under .ec. NA'
• #ension plans are eligible !or a deduction under .ec. NA'''
• 7ealth riders are eligible !or deduction under .ec. NA4
• The proceeds or withdrawals o! li!e insurance policies are exempt
under .ec @AJ@A4;1 subject to norms prescribed in that section.
T/0 R/tes
+ IndiBidu/2sT.e +/tes o: in7ome t/0
+ (Y !!6#!" /+e /s 22oFs:Tot/2 In7ome (Rs,%
Rate "f ta#
Senio+ 7itiHen 9omen be2oF 48
De/+s
't.e+s
0pto "s @1AA1AAA*- ,il ,il ,il
Above "s @AA1AAA*- to @FE1AAA*- ,il ,il @AO
Above "s @FE1AAA*- to @EA1AAA*- ,il @AO @AO
Above "s @EA1AAA*- to @HE1AAA*- ,il GAO GAO
Above "s @HE1AAA*- to GEA1AAA*- GAO GAO GAO
Above "s GEA1AAA*- DAO DAO DAO
Su+7./+Ee on In7ome T/0: &n case where the Total &ncome exceeds "s @A1AA1AAA1
there would be a surcharge [ @AO.
Edu7/tion Cess on In7ome T/0: /ducation 'ess [GO will be payable on the
amount o! income tax Jincluding surcharge;.
Bene:its unde+ insu+/n7e ?o2i7D # Se7tion $!($!D%
As per .ection @AJ@A4; o! &ncome tax Act1 @HI@1 any sum received under a li!e
insurance policy1 including the sum allocated by way o! bonus on such policy is
exempt !rom tax. 7owever1 this rule does not apply to !ollowing amounts:
.um received under .ection NA44 JD;1 or
Any sum received under a 9eyman &nsurance #olicy1 or
Any sum received other than as death bene!it under an insurance policy which has
been issued on or a!ter April @ GAAD and i! the premium paid in any o! the years
during the term o! the policy is more than GAO o! the sum assured.
CHAPTER#4
DATA ANALYSIS A (INDIN&S
$%, A+e Dou inte+ested in ?+odu7ts o::e+ed bD t.e ICICI PRUDENTIALG
5es I@O
,o GGO
=ill think @PO
INTERPRETATI'N
The good thing is that atleast the corporates were $uite eager to !ind out what &'&'&
#"04/,T&A6 has to o!!er whereas the major DH O o! the corporates were not even
interested in the products as they are $uite satis!ied by the 6&' and they are not in
breaking their long relationship with them. The private players will have to play a
long battle in order to ensure that they are serious player in the market. Basically
corporates think that its too early to invest in private companies as they have just
entered the scene and they are unsure o! the security they will have about their
investment.
()*
++*
),*
-es
No
Will think
%, A+e Dou s/tis:ied Fit. Dou+ ?+esent insu+e+G
5/. IEO
,o DEO
INTERPRETATI'N
7ere is where the challenge is. &nevitably most o! the players are very satis!ied with
their present insurer which makes it more tough !or the private players to attract the
corporates. The remaining DE O are also not very dissatis!ied by the services but they
are just open to new avenues and are looking !orward that private companies come
with good o!!ers so that they may shi!t to them. Thus private players will have to be
very proactive and in this regard since 6&' is the leader and &'&'& #"04/,T&A6 is
lagging behind its competitors in terms o! competition.
5%, 9.e+e Fou2d Dou 2i-e to insu+e i: EiBen 7./n7eG
(.*
/.*
-es
No
6&' - IA
&'&'& - @A
BA2A2 A66&A,Q - E
TATA A&) - @E
.B& - N
93TA9 MA7&,4"A - G
INTERPRETATI'N
Thus we see that the companies are com!ortable in having business with govt. owned
companies as they !eel its sa!e ? secure to have business with them which is !ollowed
by .B& as it is the biggest bank and then !ollowed by TATA A&) as the name TATA is
associated with it which commands huge premium in the market . =hereas in the case
o! &'&'& #"04/,T&A6 the !igures represent mediocre per!ormance a!ter compelling
and coxing the corporates and creating a strong impression whether they !eel
interested in doing business with the company.
@%, 9./t is ?eo?2e=s m/in 7on7e+n F.i2e t/-inE / insu+/n7e ?o2i7D (ULIP%G
(0
1
).
)0
.
+
0
)0
+0
/0
20
.0
(0
#IC "BI TATA AIG ICICI BAJAJ 3OTA3
4A5IN6RA
'3M#A,&/..
,3
3(
#/3#6/
A; .ecurity FAO
B; "eturns GNO
'; Tax rebate DGO
INTERPRETATI'N
#eople invest in insurance mainly because o! security concern.
8%, A+e Dou /F/+e o: Li:etimeSu?e+ int+odu7ed bD ICICI P+udenti/2 2imitedG
5es ENO
,o FGO
INTERPRETATI'N
The awareness level among the corporate about &'&'& #"04/,T&A6 o!!ering
services is very low and the company needs to work on it. Today is the world o!
marketing thus it is recommended that company should become more media !riendly
by advertising more through television channels1 radio1 newspapers1 maga%ines1
journals ?editorials.
CHAPTER#6
LI)ITATI'NS
• The geographical area was very much limited to residential area ? so the
results are not particularly re!lection o! the current behavior.
• Biases and non-cooperation o! the respondents.
• 4ue to limited time period and constrained working hours !or most o! the
respondents1 the answers at times were vague enough to be ignored.
• Most o! the people in &ndia take their policies in the period preceeding
MarchJ!or tax saving purposes; ? so the response to initial contacts were not
all encouraging and that has been the primary reason in the inability to
$uanti!y the results large enough so as to reduce any relevant outcomes.
• Most o! the results that are spelt out have been o! $ualitative aspects.
• #eople are not interested in giving personal opinion.
REC'))ENDATI'NS
• More emphasis should be on promotional activities.
• #lenty o! advertisement should be done through T.-1 ,ewspaper and "adio as
these medias are having maximum recall value.
• Total !inancial planning and advice should be given to every customer.
• More business opportunity seminars should be conducted to make people
aware o! the o!!er given.
• The company should $uite !re$uently send their agent to the customer so that
they should be aware o! the latest o!!er.
• The company should attempt to open more and more o! its branches in the
country so as to promote their product publicity.
C'NCLUSI'N
6&' enjoys credibility over other private players in the industry #eople look
!or security over returns in market linked plans .6i!etime is the most popular
product among the people who are aware about &'&'& #rudentials products.
#eople are now showing more interest in 06&# as compared to some o! the
traditional plans.
&'&'& #"04/,T&A6 has to counter the distribution network o! 6&' .The
product pro!ile o! &'&'& #"04/,T&A6 is not very comprehensive
BIBL'&RAPHY
• www.iciciresearchcenter.org
• www.tata-aig.com
• www.icicipruli!e.com
• www.personal!n.com
ANNE>URE
@. 4o you have any li!e insurance policies<
5es ,o
&! 5es: -
,ame o! the 'ompany ++++++++++++++++
,ame o! the plan +++++++++++++++++
Annual Amount o! premium +++++++++++++++++
Term o! plan +++++++++++++++++
@. Are you satis!ied with present insurer<
A; 5/. B; ,3
G. =hich are the main issues that you take into consideration while purchasing
any li!e insurance policy<
A; .ecurity
B; "eturns
'; Tax saving
4; 3thers please speci!y+++++++++
D. Are you aware o! 0nit 6inked &nsurance #lans o!!ered by various companies in
&ndia<
A; &'&'& B; 3M 93TA9 MA7&,4"A
'; TATA A&) 4; BA2A2 A66&A,Q
/; 6&' (; .B&
); MAL ,/= 53"9 7; B&"6A .0,6&(/
F. 4o you know how a 0nit 6inked &nsurance #lan works<
A; 5/. B; ,3
E. 'an you please highlight risk attached with them<
A; 7&)7
B; M34/"AT/
'; 63=
I. =hat is your perception about the 0nit link insurance plans1 are they give you
a sense o! security<
A; 5/.
B; ,3
P. Are you aware o! 6i!etime pension plan introduced by &'&'& #rudential
limited<
A; 5/.
B; ,3
N. &! you are given a choice1 which one you take:
A; &'&'& B; 3M 93TA9 MA7&,4"A
'; TATA A&) 4; BA2A2 A66&A,Q
/; 6&' (; .B&
H. =hat other plans or !lexibility you expect !rom &nsurance companies<
A; (ewer premiums
B; More returns
'; 'omplementary gi!ts
@A. Are you interested in buying products o! &'&'& #rudential<
A; 5/.
B; ,3
doc_695672798.doc