MBA Finance Project
MBA Finance Project
MBA Finance Project
A COMPARITIVE STUDY OF INVEST SHIELD LIFE OF ICICI PRUDENTIAL WITH OTHER INSURANCE COMPANIES
Dissertation Sub itte! to "an#a$ore Uni%esit& to'ar!s t(e Partia$ Fu$)i$$ ent o) Re*uire ent )or t(e A'ar! o)
"AN+ALORE UNIVERSITY
"Y
Mr,IRANNA SHIVALIN+APPA,
Re#, No,- ./ACCM0.12,
Under the guidance of
"AN+ALORE
CONTENTS
List o) Tab$es
Chapter No.
1.
Title
Page No.
Introduction.
a. Introduction to Finance. b. Investment alternatives
c. Insurance
Regulatory
and
3. 4. ".
(uestionnaire.
%able "o.
%able *.+ %able *..
TITLE
)age "o.
%able *./ %able *.0 %able *.1 %able *.* %able *.4 %able *.5
#ho,ing the sum assured by the insurance companies #ho,ing the maturity benefit to investors #ho,ing the 2eath benefit to investors #ho,ing the 3ithdra,al benefit to investors
#ho,ing the Contribution by investors #ho,ing the 6-tended life coverage to investors
%able *.7
%able *.+8
#ho,ing the #urrender value #ho,ing the Automatic )remium payment to investors
%able *.+/
%able *.+0 %able *.+1 %able *.+* %able *.+4 %able *.+5 %able *.+7 %able *..8 %able *..+
#ho,ing the Additional credits to investors #ho,ing the fle-ibility of %op:up to investors #ho,ing the fle-ibility of #,itch to investors S(o'in# Initia$ 3(ar#e to t(e in%estors #ho,ing Admin charge to the investors #ho,ing Fund management charge to the investors #ho,ing &iders benefit to the investors #ho,ing the best insurance company in the unit:lin ed plan
List of Graphs
)raph No.
Graph 6.1 ;raph *.. ;raph *./ ;raph *.0 ;raph *.1 ;raph *.* ;raph *.4
TITLE
Page No.
#ho,ing Minimum and Ma-imum Age of Investor #ho,ing Minimum and Ma-imum term for Investment #ho,ing the Contribution by investors #ho,ing the Investment options to investors
#ho,ing the #urrender value #ho,ing the Additional credits to investors #ho,ing the best insurance company in the unit:lin ed plan
CHAPTER- 4
INTRODUCTION.
In the wonder ul world o !nance there are w!de "ar!ty o cho!ces ava!la#le one
needs to understand the d! erent !nvestment alternat!ves such as stoc$s% #onds% government secur!t!es% #an$ !&ed depos!ts% pr!vate company depos!ts ' !nsurance. The goal !s to help reduce r!s$ and enhance returns. (! e Insurance !s a contract or payment o a sum o money to the person assured (or a!l!ng h!m)her% to the person ent!tled to rece!ve the same) on the happen!ng o the event !nsured aga!nst. Usually the contract prov!des or the payment o an amount on the date o matur!ty or at spec! !ed dates at per!od!c !ntervals or at un ortunate death% ! !t occurs earl!er.
At ICICI *UD+NTIA(% there !s constantly str!ve to understand !nvestors need and prov!de solut!ons that help them to plan there uture #etter. In $eep!ng w!th that endeavor% ICICI present IN"+,T ,-I+(D (I.+% regular prem!um un!t l!n$ed plan w!th cap!tal guarantee. The spec! !c o#/ect!ves o the present study are To study the structure o !nsurance company and !nsurance mar$et% To study the e&!st!ng #us!ness o !nsurance !ndustry% To study the !nvestors0 #ehav!or regard!ng !nsurance% To study the percept!on level o !nsurance compan!es towards customers% To study the w!de spectrum o !nsurance compan!es w!th a s!ngle !nvestment pol!c!es% To evaluate the insuran3e mar$et under Un!t1l!n$ed *lan w!th Cap!tal 2uarantee.
ICICI g!ves more opportun!ty to the !nvestors !n Age actor as !t starts rom the #!rth o the ch!ld. The ,urrender value !n ICICI has a greater value as !t starts a ter 3 st year% wh!ch !s 345. In 6+T (I.+ the +&tended l! e coverage ac!l!ty !s most #ene !c!al as !t covers t!ll the age o 77. The le&!#!l!ty to Increase ) Decrease the Investors contr!#ut!on
!s outstand!ng !n 6+T (I.+. The .und management charges !n 8IR(A ,UN(I.+ are more a orda#le #y an !nvestor.
Insurance has a un!9ue eature% !.e.% r!s$ cover or l! e. +ven through return !s !n !nsurance% !t !s !mportant !nstrument !n !ts port ol!o to ul !ll the monetary loss o the !nvestors towards the!r dependants. (ong1term pol!c!es are #etter than med!um term and short1term pol!c!es or #etter uture arrangements. 8y entry o pr!vate !nsurance players !n the mar$et% there are new products% wh!ch also ta$e care o your !nvestments.
Company should concentrate on the :;1<4 year age group% #ecause th!s !s the t!me when people show more !nterest !n !nvestment. There should #e some arrangement o telecast!ng the!r products !n reg!onal telev!s!on !n order to reach the rural people. 6ore reputat!on !s needed or the company% as !nsurance pol!c!es are sold on the #as!s o rel!a#!l!ty.
Introduction to finance
.!nance !s one o the ma/or elements% wh!ch act!vates the overall growth o economy. .!nance !s the l! e#lood o econom!c act!v!t!es. The study o #us!ness !nance !s concerned w!th the prov!s!on% low and use o !nance w!th!n a #us!ness organ!=at!on and w!th demand or% and supply o % unds or #us!ness w!th!n the economy as a whole. .unds or a #us!ness are o#ta!ned rom a var!ety o sources and !t may #e class! !ed !n two ma/or categor!es namely !nternal and e&ternal. Internal unds are o#ta!ned #y retent!on o a port!on o the company0s own revenue stream. +&ternal !nanc!ng% on the other hand% representat!on a trans er o cap!tal unds to the #us!ness orm other #us!ness un!ts or !nd!v!duals or !nst!tut!ons !n the orm o loans or add!t!onal ownersh!p cap!tal.
FINANCIAL MANAGEMENT
.!nanc!al management emerged as a d!st!nct !eld o study at turn o the country. Its evolut!on may #e d!v!ded !nto three #road phases> the trad!t!onal phase% the trans!t!onal phase and the modern phase. ,!nce the #eg!nn!ng o the modern phase many s!gn! !cant and sem!nal developments have occurred !n the !elds o cap!tal #udget!ng% cap!tal structure theory% e !c!ent mar$et theory% opt!on pr!c!ng theory% agency theory% ar#!trage pr!c!ng theory% valuat!on models% d!v!dend pol!cy% wor$!ng cap!tal management% and #ehav!oral !nance.
.!nanc!al analys!s% plann!ng and control 6anagement o !rms assets structure 6anagement o !rms !nanc!al structure
Dec!d!ng cap!tal structure ,elect!ng a source o !nance *roper cash management ,elect!ng a pattern o !nvestment Implement!ng !nanc!al controls
Investment dec!s!on .!nanc!ng dec!s!on D!v!dend dec!s!on !nanc!al management% scope o !nance
It prov!des a payment system or the e&change o goods and serv!ces It ena#les the poll!ng o unds or underta$!ng large1scale enterpr!se It prov!des a mechan!sm or spat!al and temporal trans er o resources It prov!des a way or manag!ng uncerta!nty and controll!ng r!s$ It generates !n ormat!on that helps !n co ord!nate decentral!=ed dec!s!on ma$!ng It helps !n deal!ng w!th the pro#lem o !n ormat!onal asymmetry
Investment alternatives
As an !nvestor you have a w!de array o !nvestment avenues ava!la#le to you. ,acr! !c!ng some r!gor% #ew!lder!ng range o !nvestment alternat!ves !s ava!la#le. They all !nto two #road categor!es% v!=. !nanc!al assets and real assets are paper (or electron!c) cla!ms on some !ssuer such as the government or a
corporate #ody. The !mportant !nanc!al assets are e9u!ty shares% corporate de#entures% government secur!t!es% and depos!t w!th #an$s% mutual und shares% !nsurance pol!c!es% and der!vat!ve !nstruments. Real assets are represented #y tang!#le assets l!$e a res!dent!al house% a commerc!al property% an agr!culture arm% old% prec!ous stones% and art o#/ects. As the economy advances% the relat!ve !mportance o !nanc!al assets tends to !ncrease. O course% #y and large the two orms o !nvestment o !nanc!al assets tend to !ncrease. O course% #y and large the two orms o !nvestments are complementary and not compet!t!ve.
.or sens!#le !nvest!ng% you should #e am!l!ar w!th the character!st!cs and eatures o var!ous !nvestment alternat!ves #e ore you. These may #e class! !ed as shown #elow chart.
Investment alternatives
"on: mar eting financial Mutual fund &eal <onds estate schemes
Financial derivatives
Finan3ia$
Commerc!al 8an$s Insurance Compan!es Institutions 6utual .unds *rov!dent .unds Non18an$!ng .!nanc!al Compan!es
*r!vate *lacement
.unds Se3urit
.!nanc!al 6ar$ets
6oney 6ar$et Insuran3e Re#u$ator& an! De%e$o6 ent Aut(orit& 7IRDA8 Cap!tal 6ar$et
MISSION
Its ma!n a!m !s to act!vate an !nsurance regulatory apparatus essent!al or proper mon!tor!ng and control o the Insurance !ndustry. To protect the !nterests o the pol!cyholders% to regulate% promote and ensure orderly growth o !nsurance !ndustry and or matters connected therew!th or !nc!dental thereto. Due to th!s Act several Ind!an pr!vate compan!es have entered !nto the !nsurance mar$et% and some compan!es have /o!ned w!th ore!gn partners. Re orms !n the Insurance sector were !n!t!ated w!th the passage o the IRDA 8!ll !n *arl!ament !n Decem#er 3777. The IRDA s!nce !ts !ncorporat!on as a statutory #ody !n Apr!l :444 has ast!d!ously stuc$ to !ts schedule o ram!ng regulat!ons and reg!ster!ng the pr!vate sector !nsurance compan!es. The other dec!s!ons ta$en s!multaneously to prov!de the support!ng systems to the !nsurance sector and !n part!cular the l! e !nsurance compan!es were the launch o the IRDA0s onl!ne serv!ce or !ssue and renewal o l!censes to agents. The approval o !nst!tut!ons or !mpart!ng tra!n!ng to agents has also ensured that the !nsurance compan!es would have a tra!ned wor$ orce o !nsurance agents !n place to sell the!r products% wh!ch are e&pected to #e !ntroduced #y early ne&t year. ,!nce #e!ng set up as an !ndependent statutory #ody the IRDA has put !n a ramewor$ o glo#ally compat!#le regulat!ons. In the pr!vate sector 3: l! e !nsurance and ? general !nsurance compan!es have #een reg!stered. ,ect!on 3@ o IRDA ACT% 3777 lays down the dut!es% powers and unct!on o IRDA. ,u#/ect to the prov!s!on o th!s act and any other law or the t!me #e!ng !n orce% the author!ty shall have the duty to regulate% promote and ensure orderly o the !nsurance #us!ness and re !nsurance #us!ness.
Issue to the appl!cant a cert! !cate o reg!strat!on% renew% mod! y% w!thdraw% suspend or cancel such reg!strat!on. *rotect!on o the !nterests o the pol!cy holders !n matters concern!ng ass!gn!ng o pol!cy% nom!nat!on #y pol!cy holders% !nsura#le !nterest% solv!ng !nsurance cla!m% surrender value o pol!cy and terms and cond!t!ons o contract o !nsurance. ,pec! y!ng re9u!s!te 9ual! !cat!ons% code o conduct and pract!cal tra!n!ng or !nter med!ators or !nsurance !ntermed!ately and agents. ,pec! y!ng re9u!s!te 9ual! !cat!ons% code or surveyors and loss assessors. (evy!ng ees and other charges or carry!ng out the purposes o th!s act. *romot!ng e !c!ency !n the conduct o !nsurance and re!nsurance #us!ness. *romot!ng and regulat!ng pro ess!onal organ!=at!ons connected w!th the !nsurance and re !nsurance #us!ness. Call!ng or !n ormat!on rom% underta$!ng !nspect!on o % conduct!on en9u!res and !nvest!gat!ons !nclud!ng aud!t o the !nsurers% !ntermed!ar!es% !nsurance !ntermed!ar!es and other organ!=at!ons connected w!th the !nsurance #us!ness. Control and regulat!on o the rates% advantages% terms and cond!t!ons that may #e o ered #y !nsurers !n respect o general !nsurance #us!ness not so controlled and regulated #y the Tar! Adv!sory comm!ttee u)s sect!on ?@U o the Insurance Act% 37<A (@ o 37<A). ,pec! y!ng the orm and manner !n wh!ch #oo$s o account shall #e ma!nta!ned and statement o accounts shall #e rendered #y !nsurers and other !nsurance !ntermed!ar!es. Regulat!ng !nvestment o unds #y !nsurance compan!es. Regulat!ng ma!ntenance o merg!ng o solvency. Ad/ud!cat!on o !ntermed!ar!es. ,uperv!s!ng the unct!on!ng o the tar! adv!sory comm!ttee. ,pec! y!ng the 5 o prem!um !ncome o the !nsurer to !nance schemes or promot!ng and regulat!on pro ess!onal organ!=at!ons re erred to !n clause ( ). ,pec! y!ng the 5 o l! e !nsurance #us!ness and general !nsurance #us!ness and general !nsurance #us!ness to #e underta$en #y the !nsurer !n the rural or soc!al sector. d!sputes #etween !nsurers and !ntermed!ar!es or !nsurance
IRDA also try to generate the awareness and regulate the l! e !nsurance sector. .or th!s /o# government also use the pr!nt med!a v!=. newspapers and maga=!nes etc. to or pu#l!c !nterest. ,ome o the advert!sement cutt!ngs are attached !n anne&ure at end o the pro/ect.
A3tuariesAn actuary determ!nes prem!um ratesB stud!es mortal!ty trends% constructs mortal!ty ta#les and lays down underwr!t!ng standards. De%e$o6 ent O))i3ers-
Development o !cers !n the sector are respons!#le or the sale o !nsurance pol!c!es !n the allotted terr!tor!al /ur!sd!ct!on. They recru!t and tra!n !nsurance agents.
NON 9 LIFE
ICICI1(om#ard Insurance Rel!ance 2eneral Insurance I..CO1To$yo 2eneral Insurance -D.C Chu## 2eneral Insurance 8a/a/ All!an= 2eneral Insurance Royal ,undaram 2eneral Insurance Cholamandalam 2eneral Insurance Nat!onal Insurance Company New Ind!a Assurance Company Tata AI2 2eneral Insurance Or!ental Insurance Un!ted Ind!a Insurance
Hi!tor" of In!urance-
I0m sure we0ve all heard o the word% and have an !dea o
how !t wor$s. Is !t a conceptE IdeaE Is !t someth!ng concrete or a#stractE It depends on the conte&t o the s!tuat!on. A 9u!c$% s!mple de !n!t!on o !nsurance could #e as ollows> FRe!m#ursement !n a s!tuat!on o loss. Usually% someone dec!des that !nsurance !s neededG. In order or the concept o !nsurance to ar!se% a pre1payment o some type !s re9u!red. In the case o typ!cal% everyday general auto% health and l! e !nsurance% or e&le% the pre1payment !s !n the orm o a prem!um. *r!or to the eve o the year :444% thousands o people loc$ed to the stores% stoc$!ng up on numerous suppl!es. They eared that someth!ng catastroph!c was go!ng to ta$e place once the cloc$ struc$ m!dn!ght% and ! so% they wanted to #e prepared. Isn0t th!s a orm o !nsuranceE ,ure1 !n !ts #as!c de !n!t!on. The suppl!es they purchased would act as re!m#ursement !n the case o loss Insurance !s not necessar!ly an !nvestment rom wh!ch one e&pects to get oneHs money
ost
#ac$. Nor !s !t gam#l!ng. A gam#ler ta$es r!s$s% wh!le !nsurance o ers protect!on aga!nst r!s$s that already e&!st. Insurance !s a way to share r!s$ w!th others.
T(e Ori#ins o) Insuran3e+arly !nsurance goes #ac$ to the +gypt!an t!mes. It was $nown that around <444 8C% Ch!nese merchants d!spersed the!r sh!pments among several vessels to avo!d the poss!#!l!ty o damage or loss. There are some !nsurance compan!es around today !n the Un!ted ,tates that prov!ded !nsurance #ac$ !n the m!d 3I440s% as well as some that prov!ded rel!e to #an$s dur!ng the 37<40s and the 2reat Depress!on.
Insurance has e&!sted or thousands o years. A orm o cred!t !nsurance was !ncluded !n the Code o -ammura#!% a collect!on o 8a#ylon!an laws sa!d to predate the (aw o 6oses. To !nance the!r trad!ng e&ped!t!ons !n anc!ent t!mes% sh!p owners o#ta!ned loans rom !nvestors. I a sh!p was lost% the owners were not respons!#le or pay!ng #ac$
the loans. ,!nce many sh!ps returned sa ely% the !nterest pa!d #y numerous sh!p owners covered the r!s$ to the lenders. It was l!$ew!se !n a mar!t!me sett!ng that later one o the worldHs most amous !nsurance prov!ders% (loydHs o (ondon% was #orn. 8y 3?AA% +dward (loyd was runn!ng a co eehouse where (ondon merchants and #an$ers met !n ormally to do #us!ness. There !nanc!ers who o ered !nsurance contracts to sea arers wrote the!r names under the spec! !c amount o r!s$ that they would accept !n e&change or a certa!n payment% or prem!um. These !nsurers came to #e $nown as underwr!ters. .!nally% !n 3I?7% (loydHs #ecame a ormal group o underwr!ters that !n t!me grew !nto the oremost mar$et or mar!ne r!s$s.
,!m!larly% #e ore Novem#er 37I:% a num#er o Ind!an and many ore!gn compan!es d!d general !nsurance #us!ness !n Ind!a and th!s #us!ness was l!n$ed w!th the!r #ranches a#road. In add!t!on% (IC% some mutual compan!es and cooperat!ve soc!et!es also o ered th!s product. In act% on the eve o nat!onal!=at!on% ?A Ind!an (!nclud!ng (IC) and @; non1Ind!an ent!t!es carr!ed out !nsurance #us!ness !n Ind!a. Nat!onal!=at!on saw the #us!ness o all these organ!=at!ons a#sor#ed #y the 2+N+RA( IN,URANC+ COR*ORATION (2IC) w!th !ts our su#s!d!ar!es. Thus (! e Insurance Corporat!on o Ind!a !n the !eld o l! e !nsurance and 2eneral Insurance Corporat!on o Ind!a !n the !eld o general !nsurance have en/oyed a#solute monopoly. -owever% the re orms !n !nanc!al sector !n the early 74s have s!nce touched Insurance also. The 2ovt. o Ind!a set up a comm!ttee w!th ,hr!. R.N. 6alhotra as the Cha!rman to recommend su!ta#le re orms !n th!s sector. As a conse9uence o the recommendat!on o the 6alhotra Comm!ttee% the 2overnment o Ind!a set up an Insurance Regulatory Author!ty. On the :nd Decem#er 3777% Ind!an *arl!ament has passed% Insuran3e Re#u$ator& an! De%e$o6 ent A3t % throw!ng open the Insurance sector to 8an$s and other pr!vate part!es. ,!nce then% R8I has come out w!th dra t gu!del!nes or entry to th!s sector. Th!s !s seen as a ma/or step !n !nanc!al sector re orms% wh!ch !ntroduce% or the !rst t!me s!nce nat!onal!=at!on o the !nsurance #us!ness% an element o compet!t!on !n th!s sector. Th!s should #r!ng compet!t!vely pr!ced !nsurance or the customer and !mprove the serv!ce ava!la#le to h!m.
The #us!ness o l! e !nsurance !n Ind!a !n !ts e&!st!ng orm started !n Ind!a !n the year 3A3A w!th the esta#l!shment o the Or!ental (! e Insurance Company !n Col$ota. So(e of the i()ortant (i#e!tone! in the #ife in!urance *u!ine!! in India are: 4<414<1=4<2=4</0The Ind!an (! e Assurance Compan!es Act enacted as the !rst statute to The Ind!an Insurance Compan!es Act enacted to ena#le the government to +arl!er leg!slat!on consol!dated and amended to #y the Insurance Act w!th :@; Ind!an and .ore!gn Insurers and the *rov!dent ,oc!et!es ta$en over #y
regulate the l! e !nsurance #us!ness. collect stat!st!cal !n ormat!on a#out #oth l! e and non1l! e !nsurance #us!nesses. the o#/ect!ve o protect!ng the !nterests o the !nsur!ng pu#l!c. the Central 2overnment and Nat!onal!=ed. (IC ormed #y an Act o *arl!ament% v!=. (IC Act% 4</0> w!th a cap!tal contr!#ut!on o Rs. ; crore rom the 2overnment o Ind!a. The (! e Insurance mar$et !n Ind!a !s an underdeveloped mar$et that was only tapped #y the state owned (IC t!ll the entry o pr!vate !nsurers. The penetrat!on o l! e !nsurance products was 37 percent o the total @44 m!ll!on o the !nsura#le populat!on. The state owned (IC sold !nsurance as a ta& !nstrument% not as a product g!v!ng protect!on. 6ost customers were under1 !nsured w!th no le&!#!l!ty or transparency !n the products. K!th the entry o the pr!vate !nsurers the rules o the game have changed. The 3: pr!vate !nsurers !n the l! e !nsurance mar$et have already gra##ed nearly 3I percent o the mar$et !n terms o prem!um !ncome. The new #us!ness prem!ums o the 3: pr!vate players have tr!pled to Rs :444 crore !n :44@1 4; over last year. 6eanwh!le% state owned (ICHs new prem!um #us!ness has allen. Innovat!ve products% smart mar$et!ng and aggress!ve d!str!#ut!on. ThatHs the tr!ple whammy compan!es to s!gn up Ind!an customers aster than anyone ever e&pected. Ind!ans% who have always seen l! e !nsurance as a ta& sav!ng dev!ce% are now suddenly turn!ng to the pr!vate sector and snapp!ng up the new !nnovat!ve products on o er.
The grow!ng popular!ty o the pr!vate !nsurers shows !n other ways. They are co!n!ng money !n new n!ches that they have !ntroduced. The state owned compan!es st!ll dom!nate segments l!$e endowments and money #ac$ pol!c!es. 8ut !n the annu!ty or pens!on products #us!ness% the pr!vate !nsurers have already wrested over << percent o the mar$et. And !n the popular un!t1l!n$ed !nsurance schemes they have a v!rtual monopoly% w!th over 74 percent o the customers. The pr!vate !nsurers also seem to #e scor!ng #!g !n other ways1 they are persuad!ng people to ta$e out #!gger pol!c!es. .or !nstance% the average s!=e o a l! e !nsurance pol!cy #e ore pr!vat!=at!on was around Rs ;4%444. That has r!sen to a#out Rs A4%444. 8ut the pr!vate !nsurers are ahead !n th!s game and the average s!=e o the!r pol!c!es !s around Rs 3.3 lac$s to Rs 3.: lac$s1 way #!gger than the !ndustry average.
Th!s prov!des protect!on or a preset ) l!m!ted per!od o t!me% and would pay the death #ene !t only on death happen!ng w!th!n the preset t!me. It !s cons!dered to #e a !nsurers re9u!re the !nsured to prov!de proo o the!r !nsura#!l!ty. ICICI *rudent!al (! eguard !s a pol!cy espec!ally des!gned to prov!de !nsurance at a low cost.
Annuit&An Annu!ty !s a contract that prov!des an !ncome or a spec! !ed per!od o t!me% such as a num#er o years. And Annu!ty Cons!derat!on !s the payment% or one o the regular per!od!c paymentsB an annu!tant ma$es or an annu!ty. The #us!ness o Insurance essent!ally means de ray!ng r!s$s attached to any act!v!ty over t!me (!nclud!ng l! e) and shar!ng the r!s$s #etween var!ous ent!t!es% #oth persons and organ!=at!ons.
(! e Insurance !s un!versally ac$nowledged to #e an !nst!tut!on that el!m!nates Hr!s$H and prov!des the t!mely a!d to the am!ly !n the un ortunate event o death o the #readw!nner. (! e !nsurance !s a wr!tten contract #etween the !nsured and the !nsurer that prov!des or the payment o the !nsured sum on the date o the matur!ty o the contract or on the un ortunate death o the !nsured% wh!chever occurs earl!er. (! e Insurance !s a contract or payment o a sum o money to the person assured (or nom!nee) on the happen!ng o the event !nsured aga!nst. The contract prov!des or the payment o prem!um per!od!cally to the Insurance Company #y the assured. The contract prov!des or the payment o an amount on the date o matur!ty or at spec! !ed dates at per!od!c !ntervals or at un ortunate death% ! !t occurs earl!er.
A!%anta#es ? "ene)its o) Insuran3e Prote3tion(! e Insurance guarantees ull protect!on aga!nst r!s$ o death o the assured. In case o death% ull sum assured !s paya#le% whereas under other sav!ngs schemes the total accumulated sav!ngs alone w!ll #e ava!la#le. The later w!ll #e cons!dera#ly less then the sum assured% ! death occurs dur!ng early years. Lon# ter sa%in#(! e !nsurance encourages long term sav!ng. 8y pay!ng a small prem!um !n easy !nstallments or a long per!od a handsome sav!ng can #e ach!eved. Li*ui!it&(oan can #e o#ta!ned aga!nst a pol!cy assured whenever re9u!red.
Ta@ Re$ie),Ta& rel!e !n !ncome ta& and wealth ta& can #e ava!led on the prem!um pa!d or (! e Insurance. Income ta& #ene !t can #e ava!led to a ma&!mum l!m!t o <3.;45. Insuran3e en3oura#es an! )or3es t(ri)tA sav!ngs depos!t can #e too eas!ly w!thdrawn. 6any may not #e a#le to res!st the temptat!on o us!ng the #alance or some less worthy purpose. On the other hand% the payment o l! e !nsurance prem!ums #ecomes a ha#!t and comes to #e v!ewed w!th the same ser!ousness as the payment o !nterest on a mortgage% thus !nsurance !n e ect #r!ngs a#out compulsory sav!ngs. Eas& sett$e ent an! 6rote3tion a#ainst 3re!itor(! e Insurance can assure name o a person to whom the pol!cy moneys would #e paya#le !n the event o h!s death. The proceeds o a l! e !nsurance pol!cy% a marr!ed woman0s property act pol!cy const!tutes a trust !n avor o the w! e and )or ch!ldren and no separate ass!gnment !s necessary. The #ene !c!ar!es ate ully or!ented rom rad!ators e&cept to the e&tent ! any !nterest !n the pol!cy #y the assured.
A! inisterin# t(e $e#a3& )or bene)i3iaries> It o ten happens that a prov!s!on% wh!ch a hus#and or ather has made through !nsurance !s 9u!c$ly lost through speculat!ve or unw!se !nvestment or #y unnecessary e&pend!ture on lu&ur!es. These cont!ngenc!es can #e prov!ded aga!nst !n the case o !nsurance. The pol!cyholder can arrange rece!ve% !nterested o s!ngle sum or payment o the cla!m amount #y smaller monthly !nstallments over the selected per!od ollowed #y a lump sum at the end there o . Rea!& ar;etabi$it& an! suitab$& )or *ui3; borro'in#s> A ter an !n!t!al per!od% o the pol!cyholder !nds h!msel una#le to cont!nue payment o prem!ums he can surrender the pol!cy or cash the sum. Alternat!vely% he can t!e over a temporary d! !culty #y ta$!ng a loan on the sole secur!ty o the pol!cy w!thout delay. .urther% a l! e !nsurance pol!cy w!thout delay. .urther% a l! e !nsurance pol!cy !s somet!me accepta#le as secur!ty or a commerc!al loan.
CHAPTER- 1
R+,+ARC- D+,I2N
Introduct!on
A systemat!=ed study re9u!res proper plann!ng and !mplementat!on o the same. ,o% th!s research des!gn !ncludes an outl!ne o the study% wh!ch was conducted at AICICI PRUDENTIALB $i)e insuran3e, "an#a$ore, The des!gn o the study conta!ns !n ormat!on stat!ng the statement o the pro#lem% o#/ect!ves o the study% need or the study% and scope o the study% s!gn! !cance o the study% research methodology% and sources o data% tools and techn!9ues o data collect!on% plan o analys!s% l!m!tat!ons o the study and operat!onal de !n!t!ons o the concepts.
It !s always very d! !cult to ma$e !nsurance !nvestment dec!s!ons !n th!s world o !nvestment alternat!ve compan!es. It demanded !nvestors to #e $nowledgea#le and tact ull regard!ng the !nsurance mar$et. ,!nce% many !nsurance !nvestments are !ntroduced w!th !n a very short span o t!meB people even hav!ng lot o money are con used to !nvest the!r hard earn!ng money !n e ect!ve manner. Th!s con us!on made researcher to choose th!s part!cular !eld study !n th!s regard an e ort !s made to put some l!ght on d! erent !nvestment compan!es or the sa$e o #r!n!ng down the con us!on level among the !nvestors. In order to recommend a su!ta#le !nvestment company to an !nvestor% one must #e aware o the needs o the customer and the !mportance o h!s attr!#utes% the current !nsurance s!tuat!on and ascerta!n!ng att!tude towards r!s$ !nvolved !n an !nvestment wh!le he ma$es h!s !nvestment dec!s!on. Ceep!ng !n v!ew the a#ove cond!t!on% a study t!tled1FA Co 6arati%e Stu!& on In%est S(ie$! Li)e o) ICICI Pru!entia$ 'it( ot(er Insuran3e Co 6aniesB, A descr!pt!ve study !s conducted !n ICICI PRUDENTIAL w!th OM 5OTA5> "IRLA SUNLIFE> and MET LIFE, To analy=e these var!ous !nvestment compan!es% a compar!son had made w!th l! e !nsurance.
#, ObCe3ti%e o) t(e stu!&
To evaluate the !nsurance mar$et under UnitD$in;e! P$an 'it( Ca6ita$ +uarantee,
The scope o the study !s l!m!ted to the c!ty o 8angalore only. The compan!es% wh!ch !ssue l! e !nsurance% have #een cons!dered !n the study. The respondents have #een mostly employees rom ICICI PRUDENTIAL% OM 5OTA5% "IRLA SUNLIFE% and MET LIFE. The study !s ocused on analys!s o !nvestmentsB on a part!cular l! e !nsurance pol!cy called INVEST SHIELD LIFE 7UnitDLin;e! P$an 'it( Ca6ita$ +uarantee8 and !ts out puts !n var!ous !nvestment compan!es% wh!ch are ment!oned a#ove. A comparat!ve analys!s !s conducted #etween these compan!es on a s!ngle ' same pol!cy. The !nd!ngs w!ll reveal a#out Insurance !nvestments as a #etter opt!on !n a #etter company.
d. O6erationa$ !e)inition o) t(e 3on3e6ts
Pre iu - The ee pa!d #y the !nsured to the !nsurer or assum!ng the r!s$. Li)e insuran3e- Insurance that guarantees a spec! !c sum o money to a des!gnated #ene !c!ary upon the death o the !nsured or to the !nsured ! he or she l!ves #eyond a certa!n age.
Prote3tion- ,av!ngs through l! e !nsurance guarantee ull protect!on aga!nst r!s$ o death o the saver. In l! e !nsurance% on death% the ull sum assured !s paya#le (w!th #onuses wherever appl!ca#le).
Li*ui!it&- (oans can #e ra!sed on the sole secur!ty o a pol!cy wh!ch has ac9u!red loan value. 8es!des% a l! e !nsurance pol!cy !s also generally accepted as secur!ty or even a commerc!al loan.
Net Asset Va$ue 7NAV8Investments L Current Assets 1 Current l!a#!l!t!es and *rov!s!ons Num#er o un!ts outstand!ng !n the un!t und
In add!t!on to ICICI *RUD+NTIA(% here other !nsurance compan!es have #een chosen or sampl!ng namely O6 COTAC% 8IR(A ,UN(I.+ and 6+T (I.+.
IN,URANC+ CO6*ANI+, *O(ICD NA6+
The study was done #ased on the collect!on o *r!mary ' ,econdary data.
Pri ar& Data- *r!mary data was collected w!th the use o 9uest!onna!re and personal !nteract!on w!th the company employees. Se3on!ar& Data- ,econdary data was collected #y>
Re err!ng several #oo$s on !nsurance !ssues. Re err!ng d! erent #oo$s and prev!ous pro/ect reports !n a college l!#rary. Re err!ng rom act sheets% #rochures% /ournals% re erence #oo$s% etc.
Re err!ng some o the art!cles% reports and maga=!nes on !nsurance. "!s!t!ng l!#rar!es.
I". 6ethod o analys!s
An analyt!cal research was carr!ed out !rst to ga!n !ns!ght and proper understand!ng o the l! e !nsurance and !ts d! erent parameters connected to the un!t1l!n$ed plan. Th!s was done through 9uest!onna!re and personal !nteract!on w!th the employees o ICICI *RUD+NTIA( employees and the employees o the other !nsurance compan!es. Th!s was ollowed #y a comparat!ve study analys!s #etween the !nsurance compan!es. ,everal graphs and ta#les were prepared or a #etter anal!=at!on o serv!ce prov!ded #y them towards a s!ngle Un!t1l!n$ed plan.
Li itations O) T(e Stu!& ,tudy restr!cted to 8angalore c!ty only. ,ome o the ma/or po!nts o the l! e !nsurance pol!cy were not let out. .ree% cont!nuous and rel!a#le !n ormat!on wasn0t always ava!la#le.
,ome o the !n ormat!on was con !dent!al. Kh!ch do company ' !ts employees only use. ,o such !n ormat!on0s are not revealed outs!de or the general pu#l!c. The t!me span or the survey was short and hence only the ma/or aspects are cons!dered% not all the aspects were cons!dered. The !n ormat!on prov!ded #y the respondents !n terms o the!r !ncome level could not #e accurate as people are not very open when !t comes to !nanc!al matters. Ceep!ng !n m!nd the no. o pages% only our ma/or l! e !nsurance compan!es were ta$en under cons!derat!on or the comparat!ve study. (ac$ o !n ormat!on could #e also #e!ng m!slead!ng% thus lead!ng to an undes!ra#le !mpact as a result such !n ormat!on #ased on dec!s!on ma$!ng.
h. Chapter scheme
C(a6ter 9 4,
Introduct!on
C(a6ter 9 1, Research Des!gn. C(a6ter 9 2, Company *ro !le. C(a6ter 9 E, Analys!s and !nterpretat!on o data C(a6ter 9 / ,ummary o .!nd!ngs% Conclus!on and Recommendat!ons.
C-A*T+R> <
COMPANY PROFILE,
ICICI *rudent!al (! e Insurance Company !s a /o!nt venture #etween ICICI 8an$% a prem!er !nanc!al powerhouse% and prudent!al plc% a lead!ng !nternat!onal !nanc!al serv!ces group head9uartered !n the Un!ted C!ngdom. Incorporated on July :4% :444 !t !s a I@>:?% ICICI *rudent!al was amongst the !rst pr!vate sector !nsurance compan!es to #eg!n operat!ons !n Decem#er 3:% :444 a ter rece!v!ng approval rom Insurance Regulatory Development Author!ty (IRDA). ICICI *rudent!al e9u!ty #ase stands at Rs. 20. 0 billion w!th ICICI 8an$ and *rudent!al plc hold!ng I@5 and :?5 sta$e respect!vely. As on the date Jan :44I the company !ssued over !." million policies. The total company asset !s 3@444 crore. Today the company !s the M3 pr!vate l! e !nsurers !n the country. As on date the company !ncluded #$0 offices% 2"%000 advisors & 22 banc assurance partners.
Pru!entia$ 6$3
+sta#l!shed !n (ondon !n 3A@A% Pru!entia$ 6$3% through !ts #us!nesses !n the UC and +urope% the U, and As!a% prov!des reta!l !nanc!al serv!ces products and serv!ces to more than :4 m!ll!on customers% pol!cyholder and un!t holders worldw!de. As o Decem#er :44?% the company had over :;3 #!ll!on ounds !n unds under management. *rudent!al has #rought to mar$et an !ntegrated range o !nanc!al serv!ces products that now !ncludes l! e assurance% pens!ons% mutual unds% #an$!ng% !nvestment management and general !nsurance. In As!a% *rudent!al !s UCHs largest l! e !nsurance company w!th a vast networ$ o +, #ife and (utua# fund o)eration! in t e#-e countrie!$ Ch!na -ong$ong Ind!a
Indones!a Japan Corea 6alays!a The *h!l!pp!nes ,!ngapore Ta!wan Tha!land "!etnam
Vision
To ma$e ICICI *rudent!al the dom!nant (! e and *ens!ons player #u!lt on trust #y world1class people and serv!ce.
Understand!ng the nee!s o) 3usto ers and o er!ng them super!or products and serv!ce (everag!ng te3(no$o#& to serv!ce customers 9u!c$ly% pol!cyholders e !c!ently and conven!ently !ntroduc!ng strate#ies to o er susta!na#le and sta#le returns to our
*rov!d!ng an ena#l!ng env!ronment to oster growth and learn!ng or our e 6$o&ees And a#ove all% #u!ld!ng transparency !n all our deal!ngs. Ke do #el!eve that we are on the threshold o an e&c!t!ng new opportun!ty% where
we can play a s!gn! !cant role !n rede !n!ng and reshap!ng the sector. 2!ven the 9ual!ty o our parentage and the comm!tment o our team% there are no l!m!ts to our growth. The success o the company w!ll #e ounded !n !ts un l!nch!ng comm!tment to ; core values% namely> Integr!ty Customer !rst. 8oundary less Ownersh!p and *ass!on +ach o the values descr!#es what the company stands or% the 9ual!t!es o our people and the way we wor$. Ke #el!eve that we are on the threshold o an e&c!t!ng new opportun!ty% where we can play a s!gn! !cant role !n rede !n!ng and reshap!ng the sector. 2!ven the 9ual!ty o our parentage and the comm!tment o our team% there are no l!m!ts to our growth.
Va$ues
The success o the company w!ll #e ounded !n !ts un l!nch!ng comm!tment to ; core values 11 Integr!ty% Customer .!rst% 8oundary less% Ownersh!p and *ass!on.
MANA+EMENTThe ICICI *rudent!al (! e Insurance Company (!m!ted 8oard compr!ses reputed people rom the !nance !ndustry #oth rom Ind!a and a#road.
"oar! o) Dire3tors
Mr. !.@. !amath> Chairman Mr.<arrey #to,e. Mrs. !alpana Morparia Mrs.Chanda !ochhar. Mr. -T )hong. Mr.M.).Modi Mr.&."arayanan Mr. Mar %uc er Mrs. Lalita 2. ;upte Mr. 2anny <ardin Mr. M.). Modi
Mr.".#. annan> 6-ecutive 2irector. Mr.!e i 2adiseth Mr. & "arayanan Mr.<hargav 2asagupta> 6-ecutive 2irector. Ms. #hi ha #harma> Managing 2irector ? C6O.
Distribution
ICICI *rudent!al has one o the largest d!str!#ut!on networ$s amongst pr!vate l! e !nsurers !n Ind!a% hav!ng commenced operat!ons !n ?: c!t!es and towns !n Ind!a. These are> Agra% Ahmeda#ad% A/mer% Allaha#ad% Amr!tsar% Auranga#ad% 8angalore% 8are!lly% 8hat!nda% 8hopal% 8hu#aneshwar% Chand!garh% Chenna!% Co!m#atore% Dehradun% 2oa% 2untur% 2urgaon% 2wal!or% -ydera#ad% -u#l!% Indore% Ja!pur% Jalandhar% Jamnagar% Jamshedpur% Jodhpur% Canpur% Carnal% Coch!% Col$ata% Colhapur% Cota% Cottayam% Co=h!$ode% (uc$now% (udh!ana% 6adura!% 6angalore% 6eerut% 6um#a!% Nagpur% Nas!$% No!da% New Delh!% *at!ala% *une% Ra!pur% Ra/$ot% Ranch!% Rour$ela% ,!l!gur!% ,urat% Thane% Thr!ssur% Tr!chy% Tr!vandrum% Uda!pur% "adodara% "ash!% "!/ayawada and "!=ag. The company has twelve #anc assurance t!e1ups% hav!ng agreements w!th ICICI 8an$% .ederal 8an$% ,outh Ind!an 8an$% 8an$ o Ind!a% (ord Cr!shna 8an$ and *un/a# ' 6aharastra Co1 operat!ve 8an$% ,hamrao "!thal Co1operat!ve 8an$ ' Jalgaon *eople0s Co1 operat!ve 8an$% 2oa state Co1operat!ve 8an$% Indoor *araspar ,aha$ar! 8an$% 6an!pal ,tate Co1operat!ve 8an$% as well as some co1operat!ve #an$s and corporate agents. It has also t!ed up w!th organ!=at!ons l!$e Dhan or d!str!#ut!on o ,alaam P!ndag!% a pol!cy or the soc!ally and econom!cally underpr!v!leged sect!ons o soc!ety. ICICI *rudent!al has recru!ted and tra!ned over 344%444 !nsurance agents to !nter ace w!th and adv!ce customers. .urther% !t leverages !ts state1o 1the1art IT !n rastructure to prov!de super!or 9ual!ty o serv!ce to customers.
ICICI *rudent!al (! e Insurance Company !s a /o!nt venture #etween ICICI 8an$% a prem!er !nanc!al powerhouse% and prudent!al plc% a lead!ng !nternat!onal !nanc!al serv!ces group head9uartered !n the Un!ted C!ngdom. ICICI *rudent!al was amongst the !rst pr!vate sector !nsurance compan!es to #eg!n operat!ons !n Decem#er :444 a ter rece!v!ng approval rom Insurance Regulatory Development Author!ty (IRDA). ICICI *rudent!al0s e9u!ty #ase stands at Rs. :4.?4 #!ll!on w!th ICICI 8an$ and prudent!al plc hold!ng I@5 and :?5 sta$e respect!vely. .or the past our years% ICICI *rudent!al has reta!ned !ts pos!t!on as the No.3 pr!vate l! e !nsurer !n the country% w!th a w!de range o le&!#le products that meet the needs o the Ind!an customer at every step !n l! e. To $now more a#out the company% please v!s!t www.!c!c!prul! e.com.
6!lestones Crossed
Cap!tal !n us!on stands at Rs.20. 0 billion. Over !." million *ol!c!es !ssued s!nce !ncept!on The total asset !s !%000 crore. Recently they have !ntroduced two new unds namely F#e.i gro th / F#e.i *a#anced' Around @45 mar$et share #y prem!um among pr!vate players. .!rst *r!vate (! e Insurer to launch *ens!on plan w!th ,ec A4CCC Ta& #ene !t. They have launched one more #est health product named Ho!)ita# care
,trength !n Num#ers
34 regular prem!um products ? s!ngle prem!um products @ health products. @ Ret!rement plans @ r!ders 1 Ta& #ene !t (,ec A4D)
Over :<@444 adv!sors present !n ;A4 o !ces cover!ng all ma/or metros. Del!very through Alternate D!str!#ut!on channels l!$e 8ro$ers% Corporate Agents and *artner 8an$s as well.
Kell pos!t!oned to target the mass ' the mass a luent segments (argest 8ancassurance set up !n the country today w!th more than @444 pol!c!es !ssued per month .!rst (! e Insurer to operat!onally T!e1Up w!th a *u#l!c sector 8an$.
the top !ve w!th a mar$et share o close to I5 1 All!an= 8a/a/% 6a& New Dor$ (! e and ,8I (! e Insurance. In the group !nsurance mar$et% (ICHs share !n the country !s around 7<5. Among the pr!vate compan!es% ,8I (! e% 8!rla ,un (! e and -D.C ,tandard (! e dom!nate the group !nsurance segment. ,8I (! e% w!th !ts group pol!c!es or mortgage loan protect!on and depos!tor !nsurance% has close to @;.A5 o the group mar$et among pr!vate compan!es. 8!rla ,un (! e has a :<.@5 share% ollowed #y -D.C ,tandard (! e wh!ch has an 3A.@5 share.
A3A&2#.
Awards
India's Most Customer Responsive Insurance Company Avaya Global Connect - Economic Times Customer Responsiveness Awards
Most Trusted Private Life Insurer The Economic Times - A C Nielsen Survey of Most Trusted rands ! "##$% "##& and "##'
Prudence Customer Centricity Award 2004 & 200 (rudential Corporation Asia
)i#ver !ffie for !ffectiveness of t'e -Retire from .or/ not #ife0 advertisin% campai%n Effies "##$
Reco%nitions
IMM Award for !"ce##ence )nstitute of Mar*etin+ , Mana+ement
/nit 0alues of different (lan options as on #1-#'-"##2 P#an (rotector 3)ncome4 (lan5 alancer 3 alanced4 (lan5 Ma.i miser 3Growth4 (lan5 (ension Ma.i miser 3Growth4 (lan 8 (ension alancer 3 alanced4 (lan 8 1nit 2a#ue 3Rs45unit6 6'7#1&" "$72& &'722 &'79& ""7$6 6$7' 6'7;; 6"7$21' 6"7$'&& "#7#2 6672;&$ "&726 6679$'; 6'7$$ 667"$&9
Group <ebt :und Group Short Term debt fund Group Growth :und Group Capital Guarantee Short Term <ebt :und Ma.i miser 3Growth4 :und )) = (reserver 3Short Term4 :und 5 = alancer 3 alanced4 :und )) = (rotector 3)ncome4 :und )) =
(ension (reserver 3Short Term4 :und 8 > (ension Ma.i miser 3Growth4 :und )) > (ension (rotector 3)ncome4 :und )) > (ension alancer 3 alanced4 :und )) >
6671262 "'721 667"$'$ 6'72" 667"'#1 6$7&6 6$7&& 667; 667#$ 6#7;$9' 6#716"; 6#79"$ 667'' 6676; 6#7&9 6672;9' 66726 667&'9 6#7'" 6#7'' 6#7' 6#7'2 6#7' 6#7$" 6#7$1
)nvest Shield Cash 555 )nvest Shield ?ife 55 )nvest Shield (ension )C)C) (rudential ?ife Ma.i miser ))) == )C)C) (rudential ?ife alancer ))) ==
)C)C) (rudential ?ife (rotector ))) == )C)C) (rudential ?ife (reserver ))) == 5Group Capital Guarantee <ebt :und 5Group Capital Guarantee alanced :und
)nvest Shield ?ife New :und 88 Group Capital Guarantee Growth :und Cash (lus :und Secure (lus :und Secure (lus (ension :und :le.i Growth 5 :le.i Growth )) = :le.i Growth ))) == (ension :le.i Growth 8 (ension :le.i Growth )) > :le.i :le.i alanced 5 alanced )) =
:le.i
Ri!ers A$$o'
'roduct
Ter
e!
Min Ma@ Sa%e :N: Prote3t Cas( "a3; S art 5i! S art 5i! ULIP 7RP8 S art 5i! ULIP 7SP8 Li)e#uar! SP Li)e#uar! ROP Li)e#uar! WROP Li)e Lin;D SP Li)e Ti e Fore%er Li)eD RP Li)e Ti e Pension Li)e Lin; Pension Se3ure P$us Pension Se3ure P$us Hea$t( Assure 6$us 3.; 3A ;; 3A44 3 la$h 34 la$h 34 <4 @A ?; ?; 3 3 3.; 3.; 3.; 3 3 3 4 3 3 3 4 3 3 4 3? :4 :4 :4 3A 3A 3A 4 4 :4 3A 3A 3A 4 ?4 ;; ?4 ?4 ;4 ;4 ;4 ;4 ?: ?4 ?4 ?4 ?: ?4 ?4 ?%444 ?%444 A%@44 3A%444 Min Ma@ Min Ma@ Min Ma@ Ma@ <4 3A 1 1 1 1 1 1 1 1 1 ;4 ;4 ;4 ;4 <4 1 I4 I4 I4 I4 ?4 ?; ?; ?; 1 1 I4 I4 I4 I; I; I4 I4 I4 I4 ?4 ?; ?; ?; I4 I4 I4 I4 I4 I; I; AD% A8% CI (A)% 6, AD% A8% CI (A)% 6, AD ) A8 ) I8R AD% I8R% KO* AD% I8R NA AD% A8 AD% A8 NA AD% CI (,)% 6, AD% A8% CI(,)%6, AD% CI(,)% 6, NA AD% A8% KO*% CI1,% 6, AD% A8% 6,% .I8% CI (A)% KO* N.A ;4%444 3 Crore 34
I;%444 3 Crore 3; ' :4 3 (ac <4 (acs 34 3%(ac <4 (acs 34 :; :; :; 3; :; :; 1 1 <4 ;: ;:
;4%444 :.; (ac ;4 (acs 34 1 :%@44 :%@44 :;%444 3A%444 ?%444 : (ac 34 (acs ; 3 (ac 3Crore ;
Here in the a*o-e ta*#e !o(e )oint! are to *e re(e(*ered: 3) Non ,tandard age proo (N,A*) not accepta#le or Term% Un!t (!n$ and *ens!on *roducts. :) Un!t (!n$ed *lans% ,ecure *lus% Cash plus not allowed #eyond class ". <) (! e 2uard *roducts not allowed #eyond class I". @) .or Un!t (!n$ products the l! e cover e&!sts #etween I to I4 yrs.
Li)eLin; II !s a un!9ue plan that com#!nes the secur!ty o a l! e !nsurance pol!cy w!th the opportun!ty o en/oy!ng h!gh returns on your !nvestments% w!thout the mar$et r!s$s comprom!s!ng on the protect!on o your am!lyQ
Deat( "ene)it- The ,um Assured under the product has : opt!ons% e!ther ;445 o the !n!t!al prem!um or 34;5 o the !n!t!al prem!um. In the event o an un ortunate death% the
#ene !c!ary w!ll rece!ve h!gher o the value o un!ts or the !n!t!al death #ene !t% less any w!thdrawals. Wit(!ra'a$ "ene)it- One can ma$e part!al w!thdrawals rom the accumulated value o the pol!cy a ter complet!on o one pol!cy year. F$e@ibi$it&- Choose rom our und opt!ons% #ased on your !nvestment o#/ect!ve and r!s$ appet!te. I at a later stage your !nanc!al pr!or!t!es change% you can sw!tch #etween the var!ous und opt!ons% a#solutely ree% @ t!mes a year.
Sa-ing! So#ution!
th!s product range truly ma$es the un!t l!n$ed products !deal even or w!der range o aud!ence% w!th lower prem!um levels and the added secur!ty o a cap!tal guarantee. It !s a un!9ue range o product compr!s!ng o pens!on and sav!ng plans% and !s !deally su!ted or those en/oy le&!#!l!ty% transparency and% o course guarantees. A complete mar$et1l!n$ed !nsurance plan that adapts !tsel to your chang!ng protect!on and !nvestment needs% throughout a l! et!me.
A mar$et l!n$ed an !nsurance plan that meets your Investment and *rotect!on needs. Is a transparent and eature1pac$ed sav!ngs plan that o ers < levels o protect!on.
Is a transparent% eature1pac$ed sav!ngs plan that o ers < levels o protect!on as well as l!9u!d!ty opt!ons. Is a trad!t!onal endowment sav!ngs plan that o ers l! e protect!on along w!th ade9uate returns. Is an ant!c!pated endowment pol!cy !deal or meet!ng m!lestone e&penses l!$e a ch!ld0s marr!age% e&penses or a ch!ld0s h!gher educat!on or purchase o an asset.
Protection So#ution!
Li)e#uar! !s a protect!on plan% wh!ch o ers l! e covers at very low cost. It !s ava!la#le !n < opt!ons N (evel term assurance w!th level return o prem!um% (evel o assurance w!thout level return o prem!um along w!th two r!ders AD8R and KO* (evel term assurance 1 s!ngle prem!um.
C(i$! P$ans
The plans prov!de guaranteed educat!onal #ene !ts to a ch!ld along w!th l! e !nsurance cover or the parent who purchases the pol!cy. The pol!cy !s des!gned to prov!de money at !mportant m!lestones !n the ch!ld0s l! e. ,mart C!d plans are also ava!la#le !n un!t1l!n$ed orm 1 #oth s!ngle prem!um and regular prem!um. As a respons!#le parent% you w!ll always str!ve to ensure a hassle1 ree% success ul l! e or your ch!ld. -owever% l! e !s ull o uncerta!nt!es and even the #est1la!d plans can go wrong. -ere0s how you can g!ve your ch!ld a 3445 sa e and assured tomorrow% whatever the uncerta!nt!es. ,mart C!d !s espec!ally des!gned to prov!de le&!#!l!ty and sa eguard your ch!ld0s uture educat!on and l! estyle% ta$!ng all poss!#!l!t!es !nto account. Choose rom amongst a #as$et o : plans> ,mart C!d un!t1l!n$ed regular prem!um ,mart C!d regular prem!um
(ll these )#an! offer you: 4, Finan3ia$ "ene)its- Regular payments at cr!t!cal stages !n your ch!ld0s l! e% l!$e 8oard e&am!nat!ons% 2raduat!on and *ost1graduat!on.
1, Tota$ 6ea3e o) 2, Su
in!> e%en i) &ou are not aroun! e!iate$&- +nsures that your loved ones stay !nanc!ally
Assure! is 6ai! i
secure% even !n your a#sence. E. A$$ )uture 6re iu s are 'ai%e!- +nsur!ng that your am!ly !s not !nanc!ally #urdened !n your a#sence. that your ch!ld can real!=e h!s or her dreams w!thout any hassles. 0, De%e$o6 ent A$$o'an3e- ,mart C!d guarantees regular !ncome to secure your ch!ld0s educat!onal career and also ensures h!s or her all1round development% or a nom!nal add!t!onal amount. The Income 8ene !t R!der ta$es care o th!s through an annual payment o 345 o the sum assured% to your ch!ld% t!ll the matur!ty o the pol!cy% !n the un ortunate event o the death o the parent. All ,mart C!d plans can #e enhanced w!th the Acc!dent ' D!sa#!l!ty 8ene !t R!der and R!der. Dou can also an Acc!dent 8ene !t R!der to a ,mart C!d Regular *rem!um pol!cy% and a Ka!ver o *rem!um R!der (KO*) to ,mart C!d un!t1l!n$ed regular prem!um pol!cy. . /, Po$i3& bene)its 3ontinue- The educat!onal #ene !ts o the pol!cy cont!nue% ensur!ng
Mar;etD$in;e! So$utionsLi)e Lin; II !s a s!ngle prem!um 6ar$et (!n$ed Insurance *lan% wh!ch com#!nes l! e !nsurance cover w!th the opportun!ty to stay% !nvested !n the stoc$ mar$et. O ers customers the le&!#!l!ty and control to custom!=e the pol!cy to meet the chang!ng needs at d! erent l! e stages. It o ers @ und opt!ons 1 *reserver% *rotector% 8alancer and 6a&! m!ser.
!s a l!m!ted prem!um pay!ng plan that o ers customers l! e !nsurance cover t!ll the age o I;. Retire ent So$utions-
Is a ret!rement product targeted at !nd!v!duals !n there th!rt!es. Is a le&!#le pens!on plan that allows one to select #etween < levels o cover.
Mar;etD$in;e! retire ent 6ro!u3tsIs a regular prem!um mar$et1l!n$ed pens!on plan. Is a s!ngle prem!um mar$et1l!n$ed pens!on plan. ICICI *rudent!al also launched ::Sa$aa Fin!a#i::% a soc!al sector group !nsurance
pol!cy targeted at the econom!cally underpr!v!leged sect!ons o the soc!ety. +rou6 Insuran3e So$utions-
ICICI *rudent!al also o ers 2roup Insurance ,olut!ons or compan!es see$!ng to enhance #ene !ts to the!r employees. ICICI Pru +rou6 +ratuit& P$an- ICICI *ruHHs group gratu!ty plan helps employers und the!r statutory gratu!ty o#l!gat!on !n a sc!ent! !c manner. The plan can also #e custom!=ed to structure schemes that can prov!de #ene !ts #eyond the statutory o#l!gat!ons. ICICI Pru +rou6 Su6erannuatin# P$an- ICICI *ru o ers a le&!#le de !ned
contr!#ut!on1superannuat!ng scheme to prov!de a ret!rement $!tty or each mem#er o the group. +mployees have the opt!on o choos!ng rom var!ous annu!ty opt!ons or opt!ng or a part!al commutat!on o the annu!ty at the t!me o ret!rement. ICICI Pru +rou6 Ter P$an- ICICI *ruHHs le&!#le group term solut!on helps prov!de
a orda#le cover to mem#ers o a group. The cover could #e un! orm or #ased on des!gnat!on)ran$ or a mult!ple o salary. The #ene !t under the pol!cy !s pa!d to the #ene !c!ary nom!nated #y the mem#er on h!s)her death. Rura$ 6$ans ICICI *ru(! e0s Rural *roducts are des!gned to meet the needs o the rural consumers. These products o er the ollow!ng eatures> (ow and A orda#le *rem!ums (! e Cover ,av!ngs Opt!on -assle ree procedure
ICICI Pru Mitr offer! the fo##o ing feature!: (! e Cover and ,av!ngs Regular *rem!ums Age at entry> 3A 1 @; Drs ,um Assured> Rs.;% 444 1:4%444 *rem!um ) Dear> Rs. ;4I 1 ;;< (,A> Rs.34% 444) 6atur!ty)Death #ene !t> ,um Assured
ICICI Pru Sura;s(a D Re#u$ar Pre iu ICICI *ru ,ura$sha !s a regular prem!um pol!cy w!th the ollow!ng eatures> Ind!v!dual pol!cy Only (! e cover Term 1 < ' ; Drs Age !ndependent prem!um Age at entry> 3A 1 @; Drs ,um Assured> ,!ngle *rem!um ) Dear> Rs ;4 N :44 6atur!ty)Death #ene !t> Rs.;% 444 1 :4%444 Death 8ene !t> ,um Assured
<eing a,ay from India doesnAt mean you NRI 6$anshave to compromise the safety and security of your loved ones. In fact> your savings from your time overseas can be easily canali'ed to meet your familyAs needs : no, and in the future. #o> ,hether itBs your dream to retire in your hometo,nC to secure funds for your childrenAs educationC or to build assets> ICICI )rudential has a range of solutions that can be customi'ed to meet your needs.
5e& an insuran3e 6$ansA Ceyman !s an !nd!v!dual who d!rectly a ects the pro !ta#!l!ty and the cont!nu!ty o a #us!ness and whose a#sence may have an adverse e ect on the health and cont!nu!ty o the #us!ness. Ceyman !nsurance !s a l! e !nsurance pol!cy ta$en #y the company on the l! e o such a $ey person. The o#/ect!ve o the $eyman !nsurance !s to prov!de the company w!th money so that the !nanc!al losses to the company can #e protected% !n a#sence o the $eyman. The a!m !s to !ndemn! y the company o these losses and to allow #us!ness cont!nu!ty. All prem!ums pa!d or secur!ng a $eyman l! e !nsurance pol!cy are treated as #us!ness e&pend!ture u)s <I (3). (! eT!me II% ,ecure*lus% ,aveHnH*rotect% (! eguard and *rem!er (! e plans are ava!la#le or the purpose o $eyman !nsurance.
Th!s #ene !t !s paya#le on more than one occas!on when the l! e assured undergoes surgery. -owever the total #ene !t paya#le !n case o all the procedures !s restr!cted to a ma&!mum o ;45 o the sum assured. 6a/or ,urg!cal Ass!stance r!der !s ava!la#le w!th ,ave n0 *rotect% Cash 8ac$% (! eT!me% (! et!me II% .orever (! e% ,ecure*lus% Cash*lus and ,ecure*lus *ens!on. *rem!ums pa!d under th!s r!der are el!g!#le or ta& #ene !ts under ,ect!on1A4D. A33i!ent H Disabi$it& "ene)it Ri!er 7AD"R8)enefits payable on death due to an accident
I the pol!cyholder d!es due to an acc!dent% 3445 o the r!der sum assured !s pa!d !n add!t!on to the #as!c sum assured. In case the pol!cyholder d!es !n a land sur ace% mass pu#l!c transport system where!n the pol!cyholder was travel!ng as a are1pay!ng passenger% then :445 o the r!der sum assured !s pa!d.
3enefit! )a"a*#e in ca!e of )er(anent di!a*i#it" due to an accident I the pol!cyholder surv!ves an acc!dent #ut #ecomes permanently d!sa#led then the prem!um or the #as!c plan !s completely wa!ved o to the e&tent o the r!der sum assured. *lus% 345 o the r!der sum assured !s pa!d or the ne&t 34 years% wh!ch helps !n prov!d!ng that e&tra money and ta$es care o sudden !nanc!al set #ac$ that occurs a ter a trag!c d!sa#!l!ty. Acc!dent ' D!sa#!l!ty 8ene !t r!der !s ava!la#le w!th ,ave n0 *rotect% Cash 8ac$% ,mart C!d Ch!ld *lans% *rem!er (! e% (! eT!me% (! eT!me II% (! eT!me *ens!on II% .orever (! e% ,ecure*lus% Cash*lus% ,ecure*lus *ens!on% (! eguard RO*% (! eguard KRO*% 2roup Term *lan% Invest,h!eld (! e% Invest,h!eld Cash% Invest,h!eld 2old and Invest,h!eld *ens!on. In case o (! et!me II% (! et!me *ens!on II% ,ecure*lus% Cash*lus% (! eguard RO* and (! eguard KRO*% the wa!ver o prem!um #ene !t !s not ava!la#le. *rem!ums pa!d under th!s r!der are el!g!#le or ta& #ene !ts under ,ect!on AA. A33i!ent "ene)it Ri!er 7A"R8I the pol!cyholder d!es due to an acc!dent% 3445 o the r!der sum assured !s pa!d !n add!t!on to the #as!c sum assured.
Acc!dent 8ene !t r!der !s ava!la#le w!th ,ave0n0*rotect% Cash 8ac$% ,mart C!d regular prem!um% .orever (! e% ,ecure*lus% Cash*lus and ,ecure*lus *ens!on. *rem!ums pa!d under th!s r!der are el!g!#le or ta& #ene !ts under ,ect!on AA. Inco(e 3enefit %ider In case o death o the l! e assured dur!ng the term o the pol!cy% 345 o the r!der sum assured !s pa!d annually to the #ene !c!ary% on each pol!cy ann!versary t!ll matur!ty o the r!der. Income 8ene !t r!der !s ava!la#le w!th ,mart C!d Ch!ld *lans% ,ecure*lus and Cash*lus. *rem!ums pa!d under th!s r!der are el!g!#le or ta& #ene !ts under ,ect!on1AAD Wai%er o) Pre iu Ri!er 7WOP8
On total and permanent d!sa#!l!ty due to an acc!dent% all uture prem!ums or #oth the #ase pol!cy and r!der(s) w!ll #e wa!ved t!ll the end o the term o the r!der or death o the l! e assured% ! earl!er. Ka!ver o *rem!um r!der !s ava!la#le w!th ,ecure*lus% Cash*lus% (! eguard RO*% (! eguard KRO*% ,mart C!d Un!t1l!n$ed regular prem!um II% (! et!me II% (! eT!me *ens!on II% ,ecure*lus *ens!on% Invest,h!eld (! e% Invest,h!eld Cash and Invest,h!eld *ens!on. *rem!ums pa!d under th!s r!der are el!g!#le or ta& #ene !ts under ,ect!on AA.
CHAPTER-E
an! Ma@i u
A#e o) In%estor
*1 11
*1
48
no of years
+1
om ota
Metlife
2raph ?.3
an! Ma@i u
A#e o)
In%estor
Ana$&sis
.rom the a#ove ta#le we can clearly $now the m!n!mum ' ma&!mum age o the !nvestor ' the compar!son o age groups #etween @ !nsurance compan!es. In ICICI !nsurance can #e started #y the #!rth o ch!ld% wh!le !n others !t var!ous rom days to years. In O6 COTAC !nsurance can #e started at 3A years. In 8IR(A ,UN (I.+ !nsurance can #e started at <4 days and !n 6+T (I.+ !t !s rom 3; years.
In)eren3e
.rom the a#ove graph !t shows clearly that ICICI g!ves more opportun!ty to the Investors as !t starts #y the #!rth o ch!ld.
2raph ?.:
/8 +8 Icici
/8 1 Om ota
/8 1 <irla .8 +8 Metlife
Ma-imum years
ter )or In%est ent
Ana$&sis8y the a#ove ta#le we $now that !n ICICI the m!n!mum term or !nvestment !s 34 to <4 years% !n O6 COTAC !t starts rom ; to <4 years. In 8IR(A ,UN (I.+ !t starts rom ; to <4 years and wh!le !n 6+T (I.+ !t stars rom 34 to <; years.
In erence>
.rom the a#ove graph !t shows that !n O6 COTAC and 8IR(A ,UN (I.+ the terms starts rom ; years% wh!ch !s more le&!#le or !nvestment compar!son w!th ICICI and 6+T (I.+% wh!ch starts rom 34 years.
.um assured
O6tion to 3(oose a s6e3i)i3 $e%e$ o) su assure! as 6er &our nee!s> base! on a u$ti6$e o) &our annua$ 6re iu De6en!s on t(e a ount o) 6re iu 6ai!, Mini u - Rs /.>... )or inors an! Rs I/>... )or a!u$ts De6en!s on t(e o6tion ta;en
.rom the a#ove ta#le we can $now that !n 8IR(A ,UN(I.+ the m!n!mum sum assured or m!nors !s ;4%444 ' or adults !t !s I;%444. Kh!le !n other !nsurance compan!es l!$e ICICI the sum assured !s #ased on the annual prem!um. In O6 COTAC !t !s #ased on the amount o prem!um pa!d and wh!le !n 6+T(I.+ !t !s #ased on the opt!on too$ #y the !nvestor
In erence>
.rom the a#ove ta#le !t shows clearly 8IR(A ,UN(I.+ !s the most advantageous !n case o sum assurance wh!le compared to others.
*aturity benefit
Hi#(er o) t(e %a$ue o) t(e unit )un! o) t(e #uarantee! %a$ue o) t(e unit )un!, Va$ue o) a33u u$ation a33ount or t(e SA '(i3(e%er is (i#(er> as a $u 6 su or as s&ste ati3 'it(!ra'a$ Po$i3& )un! Po$i3& )un!
.rom the a#ove ta#le we can $now that the matur!ty #ene !t !n ICICI !s #ased on the guaranteed value o un!t und. In O6COTAC the matur!ty depends on the value o accumulat!on account. In 8IR(A ,UN(I.+ ' 6+T (I.+ the matur!ty !s purely #ased on the pol!cy und.
In erence>
.rom the a#ove ta#le !t shows clearly that matur!ty #ene !t !s worthwh!le !n ICICI when compared to other !nsurance compan!es.
/eath benefit
Su assure! J Hi#(er o) t(e %a$ue o) t(e unit )un! or #uarantee! %a$ue o) t(e unit )un!, 7Su Assure!D 6re iu s !ue but not 6ai!8 o) %a$ue o) a33u u$ation a33ount '(i3(e%er is (i#(er, Fa3e a ount J 6o$i3& )un! 7'(ere t(e 6o$i3& is bou#(t on or 6rior to t(e 4st birt(!a& o) t(e $i)e insure!> on$& 6o$i3& )un! is 6a&ab$e to t(e 6o$i3& o'ner in t(e e%ent o) !eat( o) t(e $i)e insure! 'it(in t(e )irst 6o$i3& &ear8 U6 to a#e o) 4..
MetLi)eDMet s art
In erence>
.rom the a#ove ta#le !t shows clearly that the death #ene !t !n 6+T (I.+ !s much more #ene !c!al than other !nsurance compan!es.
4ithdra a# *enefit
None
Partia$ or 3o 6$ete 'it(!ra'a$s are a%ai$ab$e )ro t(e 2r! &ear on'ar!s Partia$ or 3o 6$ete 'it(!ra'a$s are a%ai$ab$e )ro t(e 2r! &ear on'ar!s, In a &ear 1 'it( !ra'$s are )ree o) 3(ar#e, For e%er& a!!itiona$ 'it(!ra'a$ a 3(ar#e o) Rs 4.. 'i$$ be $e%ie!, An& ti e a)ter one &ear> )irst t'o 6artia$ 'it(!ra'a$s are )ree, T(e 3o 6an& 'i$$ 3(ar#e Rs 1/. or 1K o) a t 'it(!ra'n,
MetLi)eDMet s art
In erence>
.rom the a#ove ta#le !t shows clearly that the w!thdrawal #ene !ts are advantageous !n 8IR(A ,UN(I.+ ' 6+T (I.+ wh!le compared to ICICI ' O6 COTAC
1ontribution
Mini u - Rs, =>... 6,a, Mini u - Rs, 4.>... 6,a, SubCe3t to a ini u )a3e a ount o) Rs /.>... )or inors an! Rs I/>... )or a!u$ts Mini u - Rs 1.><I. 6,a
.8748
5888 +8888
18888
Analys!s>
.rom the a#ove ta#le we can $now that m!n!mum contr!#ut!on to #e pa!d !n ICICI !s Rs. A444. In O6 COTAC Rs 34444% !n 8IR(A ,UN(I.+ Rs ;4444 or m!nors and I;444 or ma/ors. In 6+TA(I.+ !t !s :47I4 p.a.
In erence>
.rom the a#ove graph% !t shows clearly that the contr!#ut!on !n ICICI w!ll #e most #ene !c!ar!es to the !nvestors compared to other !nsurance compan!es.
In erence>
.rom the a#ove ta#le% the e&tended l! e coverage !n 6et(! e !s most #ene !c!al compared to ICICI.
5ota;D Ca6ita$
u$ti6$ier
Not a%ai$ab$e
Not a%ai$ab$e Not $i ite!
Tab$e s(o'in# t(e F$e@ibi$it& to in3rease or !e3rease t(e 3ontribution b& in%estors
Analys!s>
.rom the a#ove ta#le% the le&!#!l!ty to !ncrease or decrease the !nvestor0s contr!#ut!on% !n 6+T(I.+ !s restr!cted wh!le !n ICICI !t can #e decreased to :45 or up to A45 and !ncreased !n prem!um !s not an !ssue. O6 COTAC and 8IR(A ,UN(I.+ do not prov!de such ac!l!t!es.
In erence>
.rom the a#ove ta#le% !t shows clearly that the le&!#!l!t!es to !ncrease or decrease the !nvestors0 contr!#ut!on are outstand!ng !n 6+T(I.+% wh!le compared to ICICI.
Investment options
A sin#$e unit )un! 'it( an asset a$$o3ation o) ini u I.K in !ebt an! a a@i u 2.K in e*uit&, No o6tion to 3(oose &our in%est ent, T(e 6re iu a)ter t(e !e!u3tions is Cust )unne$e! into a a33u u$ation a33ount '(i3( is in%este! as 6er t(e ris; a66etite an! obCe3ti%es o) t(e 3o 6an& Prote3tor> "ui$!er H En(an3er More t(an 0 o6tions to in%est
Investment options
/ *
Analys!s>
.rom the a#ove ta#le% we can $now that the !nvestment opt!ons !n ICICI *rudent!al are s!ngle un!t und. In O6 COTAC% no opt!on to choose. In 8IR(A ,UN(I.+ < opt!ons are ava!la#le. Kh!le !n 6+T(I.+% more opt!ons are ava!la#le as much as ?.
In erence>
.rom the a#ove graph% we can $now that the !nvestment opt!on !n 6+T(I.+ !s #etter w!le compared to other !nsurance compan!es.
Surren!er %a$ue
T(e surren!er %a$ue o) t(e 6o$i3& is a%ai$ab$e a)ter t(e 4 st &ear an! 'ou$! !i))er )ro &ear to &ear, T(e surren!er %a$ue is 6ai! out as a Kta#e o) t(e %a$ue o) t(e unit )un!, More t(an 4 &ear- 4.K, A)ter 1 &ears 1.K, A)ter 2 &ears 2.K, A)ter E &ears E.K, A)ter / &ears /.K, A)ter 0 &ears 0.K, A)ter I &ears I.K, A)ter = &ears =.K, A)ter < &ears <.K, A)ter 4. &ears an! ore </K, Va$ue o) units a)ter t(e 2r! &ear T(e surren!er 3(ar#es 'i$$ be 4..K o) t(e annua$iLe! 6re iu )or t(e )irst 1E ont(s o) t(e 6o$i3&, It 'i$$ be 1EK in ont( 1/ an! 'i$$ re!u3e b& 4K e%er& ont( t(erea)ter an! 'i$$ be Lero )ro t(e E<t( ont( on'ar!s "ase! on Kta#e o) 6re iu More t(an 4 &ear- .K, A)ter 1 &ears .K,
A)ter 2 &ears 1.K, A)ter E &ears 2.K, A)ter / &ears E.K, A)ter 0 &ears /.K, A)ter I &ears 0.K, A)ter = &ears I.K, A)ter < &ears =.K, A)ter 4. &ears <.K, A)ter 44 &ears H t(ere a)ter </K
+ra6( 0,/
#G&&6"26& @ALG6
+ /
/ .
In erence>
.rom the a#ove graph% we can $now that the surrender value !n ICICI starts a ter 3st year !s 345% wh!ch !s comparat!vely #etter than other !nsurance compan!es.
.rom the a#ove ta#le% we can $now the automat!c prem!um payment !n ICICI !s less than 3; years pol!cy and ac!l!ty can #e ava!la#le 3 and tw!ce. Kh!le !n 6+T(I.+ !n!t!al < years o prem!um should #e pa!d and then !nvestors have the ac!l!ty o not pay!ng or nom!nal o : to < years. In O6 COTAC and 8IR(A ,UN(I.+ there !s no such ac!l!ty prov!ded.
In erence>
.rom the a#ove ta#le% the automat!c prem!um payment !n 6+T(I.+ !s #ene !c!ary to the !nvestors compared to ICICI% #ecause !nvestor has the opt!on o stopp!ng the prem!um or a certa!n per!od o t!me.
MetLi)eDMet s art
Analys!s>
.rom the a#ove ta#le% we can $now that the death #ene !t can #e ta$en once !n ; year !n 8IR(A ,UN(I.+ and !n 6+T(I.+ the death #ene !t prov!s!ons can #e ta$en a ter < years% wh!le !n ICICI and O6 COTAC th!s prov!s!on !s not ava!la#le.
In erence>
.rom the a#ove ta#le% we can $now that the death #ene !t !n 6+T(I.+ !s super!or to 8IR(A ,UN(I.+ as !t can #e ta$en a ter < years and can have a #ene !t to change once a year.
Di))erent Co 6an&
ICICIDIn%est s(ie$! $i)e,
(dditional credits
En! o) t(e /t( 6o$i3& &ear- 4.K o) t(e initia$ annua$ 6re iu , En! o) t(e 4.t( 6o$i3& &ear- 4/K o) t(e initia$ annua$ 6re iu , En! o) t(e 4/t( 6o$i3& &ear- 1.K o) t(e initia$ annua$ 6re iu En! o) t(e 1.t( 6o$i3& &ear- 1/K o) t(e initia$ annua$ 6re iu , En! o) t(e 1/t( 6o$i3& &ear- 2.K o) t(e initia$ annua$ 6re iu , En! o) t(e 2.t( 6o$i3& &ear- 2/K o) t(e initia$ annua$ 6re iu ,
5ota;D Ca6ita$
u$ti6$ier
Not a%ai$ab$e
Not a%ai$ab$e Not a%ai$ab$e
In erence>
.rom the a#ove graph% we can $now that add!t!onal cred!ts are only g!ven !n ICICI #ut not !n other !nsurance compan!es.
Top-up
ini u to6Du6 o) Rs, />...
A%ai$ab$e
Du 6 in 6re iu Not a%ai$ab$e are a%ai$ab$e u6 to 1/>...
Analys!s>
.rom the a#ove ta#le% we can $now that the top1up ac!l!ty !n ICICI !s up to Rs. ;444. In O6 COTAC !t !s ava!la#le (#ut not d!sclosed). And !n 6+T(I.+ !t !s up to Rs. :;444. .!nally !n 8IR(A ,UN(I.+ the top1up ac!l!ty !s not ava!la#le.
In erence>
.rom the a#ove ta#le we can clearly descr!#es that the top1up ac!l!ty !n 6+T(I.+ !s #etter compared to ICICI and O6 COTAC.
.witch
Not a66$i3ab$e
Not a66$i3ab$e 4 )ree s'it3( 6er &ear, For e%er& a!!itiona$ s'it3(> a 3(ar#e o) Rs, 4..'i$$ is $e%ie!, 4st s'it3( o) t(e 6o$i3& )ree, An& ti e a)ter t(e )irst t(ree ont(s )or ea3( s'it3(, Co 6an& 3(ar#es E..?D or .,./K o) t(e ant on s'it3(e!,
Analys!s>
.rom the a#ove ta#le% !t0s clear that !n 8IR(A ,UN(I.+ one ree sw!tch per year can #e made and or every add!t!onal sw!tch
they charged Rs. 344% wh!le !n 6+T(I.+ ree sw!tch can #e made a ter < months o the pol!cy and the !rst sw!tch o the pol!cy !s ree. A ter that every sw!tch costs Rs. @44 o the amount sw!tched. In ICICI and O6 COTAC there !s no such sw!tch!ng ac!l!ty ava!la#le.
In erence>
.rom the a#ove ta#le% we can $now that the sw!tch ac!l!ty !n 6+T(I.+ !s good when compared to 8IR(A ,UN(I.+.
Initial char,e
M4/>...D4 &earN I.KN 1n! &earN <.KN 2r! &ear on'ar!s <IK 4/>...D1E><<<D 4st &earN I1KN 1n! &earN <1KN 2r! &ear on 'ar!s <IK 1/>...DE<><<<D4st &earN I/KN 1n! &earN <1KN 2r! &ear on 'ar!s- <IK OP /.>...D4st &earN IIKN 1n! &ear <1KN 2r! &ear on 'or!s <IK
5ota;D Ca6ita$
u$ti6$ier
Not !is3$ose!
/ or #reater ter - 4st &earD 1<,<KN 1n! &ear on'ar!sN /K 4. or #reater ter N 4st &ear 9/E,0KN 1n! an! 2r! &earN I,/KN Et( &ear on 'ar!s- /K 4/ or #reater ter N 4st &ear 90/KN 1n! an! 2r! &earN I,/KN Et( &ear on 'ar!s- /K Year 4 76er ont(8 91.. Year 1 on 'ar!s 76er ont(8 D I/
MetLi)eDMet s art
Analys!s>
.rom the a#ove ta#le% we can $now that !n ICICI the !n!t!al charges vary accord!ng to the prem!um pa!d. In O6 COTAC !t !s not descr!#ed. In 8IR(A ,UN(I.+ !t !s :7.75 or the !rst year and !n 6+T(I.+ !rst year N:44(per month) and second N I; (per month).
In erence>
.rom the a#ove ta#le% !t !s clear that the !n!t!al charges var!es rom company to company depend!ng upon the!r prem!um pa!d.
(dmin char,e
A! in 3(ar#e o) Rs /.? ont(
Not !is3$ose!
Po$i3& a! in )eesP Rs, 11 6er ont(, "ase 6re iu I,.K J !u 6 in 6re iu 2,/K
In erence>
.rom the a#ove ta#le% we can $now that the adm!n charge var!es orm company to company accord!ng to the!r !nternal rules.
ICICI2In0est shield life (m 3ota42 Capital multiplier &irla#unlife2$le5i sa0e Plus 6et'ife26et smart
.or O6 Cota$ the general v!ew #ased on other Insurance compan!es !s ta$en to calculate the annual adm!n!strat!on charges.
Analys!s>
.rom the a#ove ta#le% we can $now that the und management charges !n ICICI are 3.:;5 p.a. In O6 COTAC not ment!oned. In 8IR(A ,UN(I.+ !t !s 35 p.a. And !n 6+T(I.+ !t !s ma&!mum o :.;5 p.a.
In erence>
.rom the a#ove ta#le% we can clearly $now that the und management charge !s ma&!mum !n 6+T(I.+ wh!le compared to ICICI and 8IR(A ,UN(I.+.
Di))erent Co 6an&
ICICIDIn%est s(ie$! $i)e, O 5ota;D Ca6ita$ u$ti6$ier "ir$aSun$i)eDF$e@i sa%e P$us MetLi)eDMet s art
Riders
AD"R> WOPRH CI"R Ter Ri!er ? CI ? AD"R AD"R> CI"R> Ter Not a%ai$ab$e
Analys!s>
.rom the a#ove ta#le% we can $now that the r!ders prov!ded #y ICICI are <. In O6 COTAC also < and 8IR(A ,UN(I.+ aga!n < and !n 6+T(I.+ !s has not #een d!sclosed.
In erence>
.rom the a#ove ta#le% we can $now that there are d! erent r!ders !n d! erent !nsurance compan!es accord!ng to ava!la#!l!ty.
OM :OTA: 9Ca)ita#
SHIEL& LIFE; AGE TE%M SUM$ASSU%E& MATU%ITY 3ENEFIT &EATH 3ENEFIT 4ITH&%A4AL 3ENEFIT CONT%I3UTION E<TEN&E& LIFE CO6E%AGE INC%EASE 8 &EC%EASE YOU% CONT%I3UTION IN6ESTMENT OPTIONS SU%%EN&E% 6ALUE AUTOMATIC P%EMIUM PAYMENT INC%EASE 8 &EC%EASE OF &EATH 3ENEFIT A&&ITIONAL C%E&ITS TOP$UP S4ITCH INITIAL CHA%GE A&MIN CHA%GE FUN& MANAGEMENT CHA%GE %I&E%S
Mu#ti)#ier;
P#u!;
S(art;
3 4 4 3 4 4 3 4 4 3 3 4 4 3 4 4 3 3 4 3
4 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 3 3 4 3
4 3 3 4 4 3 4 4 4 4 4 4 4 4 4 4 3 3 3 3
4 4 4 4 4 3 4 3 3 3 4 3 3 4 3 4 3 4 4 4
Tota#
A
+ra6( 0,I
34
+8
#+ met life
#eries+ +ra6( s(o'in# t(e best insuran3e 3o 6an& in t(e unitD$in;e! 6$an
Conclus!on or the a#ove graph cons!der!ng the summar!=ed ta#le Out o :4 eatures ta$en or compar!sonB
ICICI has ga!ned = po!nts% O6 COTAC has ga!ned E po!nts% 8IR(A ,UN(I.+ has ga!ned I po!nts ' 6+T (I.+ has ga!ned 4. po!nts. 1onsiderin, the above points ,ained by this insurance companies it has been ran5ed as under6
Ran;s
4 1 2 E
C-A*T+R> ;
FINDIN+S ICICI g!ves more opportun!ty to the !nvestors !n Age actor as !t starts rom the #!rth o the ch!ld.
The Term or !nvestment !n 6+T (I.+ starts rom 341:4% wh!ch !s not as le&!#le as other !nsurance compan!es.
The ,um assured !n 8IR(A ,UN(I.+ s o m!n!mum1;4% 444 or m!nors ' I;%444 or ma/ors wh!ch !s much more h!gher than others. In ICICI the 6atur!ty #ene !t !s advantageous when compared to O6 COTAC% 8IR(A ,UN(I.+ ' 6+T (I.+. The Death #ene !t !n 6+T (I.+ s #ene !c!al as !t covers up to the age o 344. In ICICI there !s no w!thdrawal #ene !t when compared to others. The Contr!#ut!on !n ICICI !s Rs A444 p.a.% wh!ch !s a orda#le #y all type o !nsurance !nvestors. In 6+T (I.+ the +&tended l! e coverage ac!l!ty !s most #ene !c!al as !t covers t!ll the age o 77. The le&!#!l!ty to Increase ) Decrease the Investors contr!#ut!on !s outstand!ng !n 6+T (I.+. Investors have a #est opt!on to !nvest as much as s!& (opt!ons) !n 6+T (I.+. The ,urrender value !n ICICI has a greater value as !t starts a ter 3 st year% wh!ch !s 345. The Automat!c prem!um payment !n 6+T (I.+ has got the opt!on to !nvestors to stop the prem!um or a certa!n per!od o t!me. The le&!#!l!ty to Increase ) Decrease the death #ene !t !n 6+T (I.+ !s most #ene !c!al. The Add!t!onal cred!ts are g!ven to !nsurance !nvestors only !n ICICI% #ut not !n others. The Top1up ac!l!ty !n 6+T (I.+ !s #etter as !t allows to dump1!n as much as Rs. :;%444. The ,w!tch ac!l!ty !n 6+T (I.+ !s relevant than 8IR(A ,UN(I.+.
The In!t!al charges o the !nsurance compan!es vary depend!ng upon the!r prem!um pa!d. The Adm!n charges o the !nsurance compan!es vary accord!ng to the!r !nternal rules. The .und management charges !n 8IR(A ,UN(I.+ are more a orda#le #y an !nvestor. The R!ders ac!l!ty d! ers rom company to company accord!ng to pol!cy.
CONC(U,ION,
Num#ers o actors were ta$en !nto cons!derat!on #e ore reach!ng a conclus!on a#out the !nsurance ' ICICI *RUD+NCIA( (I.+ IN,URANC+ compan!es. That !s overall per ormance o IN"+,T ,-I+(D (I.+ !nclud!ng ollow!ng actors.
Investors are en/oy!ng the cheap loans prov!ded #y the #an$s wh!ch shows that there w!ll urther act!v!ty down the l!ne. Insurance has a un!9ue eature% !.e.% r!s$ cover or l! e. +ven through return !s !n !nsurance% !t !s !mportant !nstrument !n !ts port ol!o to ul !ll the monetary loss o the !nvestors towards the!r dependants. 8y entry o pr!vate !nsurance players !n the mar$et% there are new products% wh!ch also ta$e care o your !nvestments. (ong1term pol!c!es are #etter than med!um term and short1term pol!c!es or #etter uture arrangements. *r!vate l! e !nsurances are do!ng well !n Ind!an mar$et #y prov!d!ng !nnovat!ve products and #etter serv!ces to the customers. *eople mostly go or ch!ld0s plan to meet the uture need o the!r ch!ldren.
The company #el!eves that the corporate plans ormulated !n response to !ts an&!ety or systemat!c long range plann!ng% w!ll serve as a v!tal and dynam!cs document wh!ch gu!de the company !n the year that d!e a head. It !s reasona#ly certa!n that some o the assumpt!on on wh!ch th!s plans to #e val!d through the planned years. +ven the corporate plann!ng e&erc!se w!ll prov!de e ect!ve trust and d!rect!on to the organ!=at!on as select!on !ts uture and del!#erate strateg!c dec!s!on N ma$!ng. The customers and employees o the company are ul !ll!ng the!r role that has #een ass!gned to them. The company0s uture apprehens!on !s l!es on the head o !ts customers.
RECOMMENDATIONS To ma$e !nvestment !n !nsurance one should #e aware o d! erent !nvestment strateg!es and ways to allocate the assets. Ind!an .!nanc!al ,ystem !s chang!ng rap!dly w!th changes come a lots o challenges and !t !s only the alert and #ehav!ors o !nvestors w!th a long1term th!n$!ng w!ll success to meet all the!r uture unseen challenges. 6ore reputat!on !s needed or the company% as !nsurance pol!c!es are sold on the #as!s o rel!a#!l!ty. There should #e the arrangement o drop1#o&es !n all1!mportant places !n the c!ty. As all $nows advert!sement can0t sell the pol!c!es #ut the people can do the same. ,o they should #e aware o the products o the company and #ene !ts o those products. Company should concentrate on the :;1<4 year age group% #ecause th!s !s the t!me when people show more !nterest !n !nvestment. There should #e low prem!um amount !n the ur#an N area. ,o that even low1 !ncome group people can also !nvest the!r money !n pol!c!es. Company should g!ve spec!al tra!n!ng to the!r !nsurance consultants t!me #y t!me. There should #e some arrangement o telecast!ng the!r products !n reg!onal telev!s!on !n order to reach the rural people. To ma$e !nvestment !n !nsurance one should #e aware o d! erent !nvestment strategy ' ways to allocate the assets% the deta!l descr!pt!on !s g!ven #elow.
Ta#le show!ng the d! erent !nvestment strateg!es and ways to allocate the asset Li)e A#e Cir3u stan3es Strate#& Li)e C&3$e
Youn# A!u$t
1.s Has no !e6en!ent> (as ta;en 3ar ? bi;e $oan> in%ertib$e sur6$us $o', Li)e nee!s #ro't(> ta;in# insuran3e $o' as H ris;D is Subtra3t
Insuran3e
"u& on$& i) &ou (a%e !e6en!ents,
Youn#
2.s
Fa i$&
6rote3tion
Mature Fa i$&
E.s
Hi#( #ro'n Ho e
e!u3ation u6 $oan
o)
3reation, Nee!s $o' as asset base bui$!s u6N s(ou$! 3$ear !ebts H start !e(is3in# in%est ent 6ort)o$io b& !e6$o&in# )un!s in
3(i$!ren, near$&
s(orter e@istin#
E 6t& Nesters
/.s
sa)er instru ents, Di%ert ne' sur6$us to 6ai! retire ent 3or6us> re!u3e 6ort)o$io ris;,
Retire!
0. J
No $i)e 3o%er nee!e!, retire ent 3or6us nee!s, s(ou$! no' )un! &our Your
re6$a3e 'or; re$ate! re#u$ar 3as( )$o's H beatin# in)$ation are to6 6riorit&,
For The Further %e!earch Ind!an .!nanc!al ,ystem !s the #!ggest !n the world. In post (*2 per!od% the scenar!o !s 9u!t comple& and challeng!ng. +very sunr!se !s see!ng the r!se o new !nanc!al products along w!th new
!nvestment strateg!es and evaluat!on o those strateg!es. ,o% !t g!ves a#ulous opportun!t!es or urther research !n ollow!ng areas. %e!earch can *e he#d on
The Impact o pr!vat!=at!on o Ind!an .!nanc!al ,ystem. Comparat!ve analys!s o d! erent mar$et products and unds. 8y ta$!ng any one type o !nanc!al !nstruments. On #u!ld!ng the port ol!o o the !nvestor. Recently !ntroduced products !n the mar$et.
"I"LIO+RAPHY
8oo$s>
4, I,M,Pan!e& DD.!nanc!al 6anagement% Ath +d!t!on% "!$as *u#l!cat!on% New Delh!. 1, Prasanna C(an!ra DDInvestment Analys!s and *ort ol!o 6anagement C.6 N T6- *ro ess!onal ,erv!ces !n .!nance% Tata 6ac2raw -!ll. 2, Dr, ",+,Sat(&6rasa! DD.!nanc!al management% :nd +d!t!on% -!malaya *u#l!cat!on% New Delh!. E, L,M,"(o$e DD.!nanc!al Inst!tutes and 6ar$ets% <rd +d!t!on% Tata 6ac2raw -!ll.
6aga=!nes>
The Chartered Accountants Insurance Industry% June :44<104@% "olume> 1 ;3% No> 3: Journal o the Inst!tute O Chartered Accountants O Ind!a. Insurance *ost Outloo$ 6oney Dalal ,treet Investment 6on!tor
K+8,IT+,>
''',ir!ain!ia,or# ''', et$i)e,3o ''',i3i3i6ri$i)e,3o ''', one&3ontro$,3o
ANNEQURE,
RUESTIONNAIRE,
I> Mr,Iranna S(i%a$in#a66a> Fina$ Se ester un!er "an#a$ore Uni%ersit&> an! !oin# & 6roCe3t in Co 6arati%e Stu!& on In%est s(ie$! $i)e 'it( s6e3ia$ re)eren3e to ICICI Pru!entia$Gs 'it( ot(er 3o 6anies, I 'i$$ be %er& u3( t(an;)u$ i) &ou s6are )e' o ents o) &our 6re3ious ti e 'it( e to #i%e t(e ans'er o) )o$$o'in# *uestions> '(i3( 'i$$ be o) #reat (e$6 to e,
4, W(at is t(e na e o) t(e 6o$i3&> '(i3( (as )eatures $i;e UnitD$in;e! 6$anS 1, W(at s(ou$! be t(e 2, W(at are t(e ini u E, W(at is t(e a3tua$ Su ini u H H a@i u a@i u A#e o) t(e 6o$i3& in t(is 6o$i3&S Ter s o) t(is 6o$i3&S
/, W(at are t(e )a3i$ities o) Maturit& bene)it a%ai$e! in t(is 6o$i3&S 0, W(at is t(e )a3i$it& o) Deat( bene)it a%ai$ab$e in t(is 6o$i3&S I, Do &ou (a%e an& Wit(!ra'a$ bene)it in t(is 6o$i3&S Yes I) &es Ho' H '(en it 'i$$ be a%ai$ab$e to 6o$i3&(o$!erS =, W(at is t(e ini u Contribution o) 6re iu 6ai! in t(is 6o$i3&S No
<, Do &ou (a%e an& a!!itiona$ bene)it $i;e E@ten!e! $i)e 3o%era#e in t(is 6o$i3&S
Yes I) &es W(at are its bene)its H (o' it 3an be a%ai$ab$e to 6o$i3&(o$!erS 4., Is t(ere an& )$e@ibi$it& to In3rease ? De3rease t(e 3ontribution in t(is 6o$i3&S Yes I) &es W(at are t(e $i itationsS 44, W(at are t(e %arious In%est ent o6tions in t(is 6o$i3&S No No
41, Do &ou (a%e t(e )a3i$it& o) ter inatin# t(is 6o$i3& be)ore t(e en! o) t(e ter 3$osin# 7Surren!er %a$ue8S
Yes I) &es No
'(en it is %a$ue!S
42, Do &ou a$$o' &our 6o$i3&(o$!er to ta;e a brea; )ro 6re iu 6a& ent 7Auto ati3 6re iu 6a& ent8S
Yes I) &es No
W(en H (o' ter 'or;sS 4E, Is t(ere an& )$e@ibi$it& to In3rease ? De3rease !eat( bene)it o6tionS
Yes I) &es Su##est t(e o!e H 6atternS 4/, Wou$! &ou 6a& an& A!!itiona$ 3re!its to 6o$i3&(o$!er at an& 6oint o) ti e !urin# t(e 6o$it& ter S Yes I) &es Mention its stru3ture )ro Yes I) &es No '(en it startsS 40, Do &ou a$$o' t(e sur6$us )un!s to in%est as a To6Du6S No No
ini u
su
4I, Do &ou (a%e t(e o6tion o) S'it3(in# bet'een )un!s> as t(e 6o$i3&(o$!er re*uiresS Yes I) &es W(en H (o' t(is o6tions 3an be uti$iLe!S 4=, Ho' !o &ou a$$o3ate t(e 6re iu Yes I) &es Mention (o' 1., Ho' u3(S ana#e ent 6ro3essS u3( !o &ou 3(ar#e to'ar!s t(e )un! No ratesS 4<, Do &ou 3(ar#e an& A! in 3(ar#es on t(is 6o$i3&S No
14, Do &ou #i%e t(e bene)it o) Ri!ers in t(is 6o$i3&S Yes No I) &es Mention t(eir t&6esS