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EXECUTIVE SUMMARY
As the people are becoming more and more and aware of their Life Style and Income
level. they need a plan, which has an optimum balance between their Investment and Savings.
They require an integrated financial plan for investment.
The customer requires those investment options, which provide them with flexibility and
Liquidity and tax benefit.
Among the various other investment options, Insurance has gained a prominent place .It
provides the policyholder with the benefit of Life Protection and at the same time allows him to
take the benefit of the fluctuations of the share market.
Thus Life Insurance has taken a very vital position as a wholesome investment option.
Life Insurance is gaining public awareness and interest very rapidly. It was till now been
thought as a way to insure lives, But, recently it is emerging as a prominent Investment avenue.
It has come up as a wholesome Investment avenue & provides the benefit of flexibility,
Liquidity and Life protection. Along with added benefits like the rider attachments which
protect the policyholder from various kinds of diseases and accident etc.
Objectives of the Study:
1. To know aware of investing in ULIPs and Traditional plans
2. To Study and Compare the Traditional Life Insurance Plans and ULIPs with respect
to ICICI Prudential life Insurance.
3. To know the factors influence while purchasing life Insurance plans.
4. To know the factors influence while purchasing the particular category of plan
1
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Data source:
Primary Data: Personal interactions, Observations
Training programs. Through Questionnaire
Secondary Data: Study material by IRDA and ICICI Prudential.
Related websites,
Past records of ICICI Prudential.&
Brochures and pamphlets of ICICI Prudential
Sampling:
a) Population : People of Hubli city
b) Size : 100 size
c) Method : Random sampling
Need for study:
After the crises all over world market condition are critical so I am study because
of what is impact on life insurance.
Scope of study:
The scope of study is limited to Hubli city and the sample size is 100
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Findings
Brand Name of the company is the main reason for the advisors to join ICICI Prudential
followed by product portfolio and excellent support from the company.
Almost all of them are satisfied with the services offered to them.
As the endowment products, dont have much liquidity option most people follow the
Market linked product.
Almost all respondent are investing in unit linked product in ICICI prudential life
insurance.
Risk cover is the most important factor as per the respondents followed by investment
and savings.
In ICICI pru life insurance have facing lack of advertisings.
Most of the respondents are satisfied from the return, risk cover and tax savings
provided by the products to its customers
LIMITATION
Not single work is exception to the limitation every work every work has got
its limitations. It is assumed that the sample selected represents entire population.
Another limitation of the project was that the study and the survey were
conducted in Hubli city only.
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Suggestions:
Continuous bombardment of Advertisement by ICICI Prudential as a Life Insurance
Company for a common man as well as for well educated and good salaried people.
The company has concentrate increases on premium 20000-50000.
Look for the way to make customer highly satisfied with respect to returns.
Premium and initial charges to be reworked as, the customer is dissatisfied with there.
Conclusion
Every study and project needs to be concluded. Hence, based on the study of ICICI
Prudential and its products in brief, and also conducting a survey on the customers and advisors
sales function towards the products offered and services provided by ICICI Prudential, I have
arrived on a conclusion that
ICICI Prudential Lifes market share stood at 11.8%, for 10-month ended January 31,
2009, making it the leading private life insurance player. As on January 31, 2009, thecompanys assets under management (AUM) stood at Rs 28,515 crore. The company also has
one of the largest distribution networks amongst private life insurers in India with over 2,100
branches (including 1,116 small-offices in rural India), an advisor base of over 2,90,000 and 18
banc assurance partners, as on January 31, 2009. Since inception, ICICI Prudential Life has
sold over 90 lakh policies.
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INTRODUCTION
INSURANCE:
The insurance industry provides protection against financial losses resulting from a
variety of perils. By purchasing insurance Policies, individual and businesses can receive
Reimbursement for losses due to car accidents, theft of property, and fire and storm damage,
medical expenses and loss of income due to disability or death.
The insurance industry consists mainly of insurance carriers (or insurers) and insurance
agencies and brokerages. In general, insurance carriers are large companies that provide
insurance and assume the risks covered by the policy. Insurance agencies and brokerages sell
insurance policies for the carriers. While some of these establishments are directly affiliated
with a particular insure and sell only that carriers policies, many are independent and are thus
free to market the policies of variety of insurance carriers. In addition to supporting these two
primary components, the insurance industry includes establishments that provide other
insurance-related services, such as claims adjustment or third-party administration of insurance
and pension funds.
Insurance carriers assume the risk associated with annuities and insurance policies and
assign premiums to be paid for the policies. In the policy, the carrier states the length and
conditions of the agreement, exactly which losses it will provide compensation for, and how
much will be awarded. The premium charged for the policy is based primarily on the amount to
be awarded in case of loss, as well as the likelihood that the insurance carrier will actually have
to pay. In order to be able to compensate policyholders for their losses, insurance companies
invest the money they receive in premiums, building up a portfolio of financial assets and
income-producing real estate, which can then be used to pay off any future claims that may bebrought.
About ICICI Prudential Life Insurance: ICICI Prudential Life Insurance Company is
a joint venture between ICICI Bank and Prudential plc. It was one of the first players to
commence operations when the insurance industry was opened to the private sector in 2000.
For the first quarter ended June 30, 2007, the company garnered Rs. 987 crore of weighted
retail + group new business premiums and has underwritten over 5 million policies since
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inception. The company has a network of over 680 offices, over 235,000 advisors; as well as 23
bank partners. It is also the only life insurer in India to be assigned AAA (Ind) credit rating
from Fitch Ratings. For the past six years, ICICI Prudential has retained its position as the No.
1 private life insurer in the country, with a wide range of flexible products that meet the needs
of the Indian customer at every step in life. To know more about the company
LIFE INSURANCE:
Life insurance can be defined as Life Insurance provides a sum of money if the person
who is insured dies while the policy is in effect.
Life insurance is a product that helps you protect your dependents from financial
difficulties in the unfortunate event of your death or disability depriving them of the financial
support that they get today. When you buy a life insurance policy, essentially you enter into acontract with an insurance company under which you promise to make periodic payments to it
(the premium). The insurance company in return promises to pay to your nominee's sum of
money upon your death or upon occurrence of the events specified in the contract.
Usually the contract provides for
Payment of an amount, on the date of maturity or at specified periodic intervals
or at death, if it occurs earlier. Periodical payment of insurance premium by the assured, to the corporation
who provides the insurance.
INSURANCE MARKET IN INDIA:
India with about 200 million middle class household shows a huge untapped potential
for players in the insurance industry. Saturation of markets in many developed economies has
made the Indian market even more attractive for global insurance majors. The insurance sector
in India has come to a position of very high potential and competitiveness in the market.Innovative products and aggressive distribution have become the say of the day. Indians, have
always seen life insurance as a tax saving device, are now suddenly turning to the private sector
that are providing them new products and variety for their choice.
Life insurance industry is waiting for a big growth as many Indian and foreign companies are
waiting in the line for the green signal to start their operations. The Indian consumer should be
ready now because the market is going to give them an array of products, different in price,
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features and benefits. How the customer is going to make his choice will determine the future
of the industry.
The insurance industry in India can broadly classified in two parts. They are,
Life insurance.
Non-life (general) insurance.
BRIEF HISTORY OF INSURANCE
The business of insurance started with marine business. The first insurance policy was
issued in 1583 in England.
Some of the important milestones in the insurance business in India are:
1818: -The British introduce to India, with the establishment of the Oriental Life Insurance
Company in Calcutta.
1850: - Non life insurance debuts, with Triton Insurance company.
1870: - Bombay Mutual Life Assurance Society is the first India-owned life insurer.
1907: - Indian Mercantile Insurance is the first Indian non-life insurer.
1912: -The Indian life assurance Companies act enacted to regulate the life insurance
business.
1938: - The insurance act, which forms the basis for most current insurance laws, replacesearlier act.
1956: - Life insurance nationalized, government takes over 245 Indian and foreign insurers
and provident societies.
1972: - Non Life insurance nationalized, GIC set up.
1993: - Malhotra Committee, headed by former BBI governor R.N. Malhotra, set up to draw
up a blue print for insurance sector reforms.
1994: -Malhotra Committee recommends re-entry for private players, autonomy to PSUinsurers.
1997:-Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up.
2000:-IRDA starts giving licences to private insurers, ICICI Prudential and HDFC Standard
Life first private insurers to sell a policy.
2002:- Banks were allowed to sell insurance plans, as TPAs enter the scene, insurers start
settling non-life claims in the cashless mode.
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Need for study:
After the crises all over world market condition are critical so I am study because
of what is impact on life insurance.
Scope of study:
The scope of study is limited to Hubli city and the sample size is 100
Objectives of the Study:
To know aware of investing in ULIPs and Traditional plans
To Study and Compare the Traditional Life Insurance Plans and ULIPs with respect
to ICICI Prudential life Insurance.
To know the factors influence while purchasing life Insurance plans.
To know the factors influence while purchasing the particular category of plan
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THE INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY:
Reforms in the Insurance sector were initiated with the passage of the IRDA bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in April
2000 has fastidiously stuck to its schedule of framing regulations and registering the private
sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the IRDAs
online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to sell their
products, which are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a framework
of globally compatible regulations. In the private sector 14 life insurance and 9 general
insurance companies have been registered
Objective of IRDA:
The main objectives of IRDA are:
To take care of the policy holders interest
To open up the insurance sector for private sector
To ensure continued financial soundness and solvency
To regulate insurance and reinsurance companies
To eliminate dishonesty and unhealthy competition
To supervise the activities of the intermediaries
To amend the insurance act ,lic act and the general business nationalization act.
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Duties and Power of IRDA:
To regulate ,promote and ensure orderly growth of the insurance business
To exercise all the powers and functions of the controller of insurance
To protect the interest of the policy holders in settlement of claims and terms and
conditions of policies
To promote and regulate professional organizations connected with insurance business.
To regulate ,promote and ensure orderly growth of the insurance business
To exercise all the powers and functions of the controller of insurance
To protect the interest of the policy holders in settlement of claims and terms and
conditions of policies
To promote and regulate professional organizations connected with insurance business.
To regulate investment of funds
To regulate margin of solvency
To adjudicate disputes between insurers and intermediaries
FUNCTIONS OF IRDA:
Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or
cancel such registration;
Protection of the interests of the policy holders in matters concerning assigning of
policy, nomination by policy holders, insurable interest, settlement of insurance claim,
surrender value of policy and other terms and conditions of contracts of insurance;
Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;
Specifying the code of conduct for surveyors and loss assessors;
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Promoting efficiency in the conduct of insurance business;
Promoting and regulating professional organizations connected with the insurance and
re-insurance business;
Levying fees and other charges for carrying out the purposes of this Act;
Specifying the form and manner in which books of account shall be maintained and
statement of accounts shall be rendered by insurers and other insurance intermediaries.
Regulating investment of funds by insurance companies;
Regulating maintenance of margin of solvency;
Adjudication of disputes between insurers and intermediaries or insurance
intermediaries.
Supervising the functioning of the Tariff Advisory Committee;
Specifying the percentage of premium income of the insurer to finance schemes for
promoting and regulating professional organizations referred to in clause.
Specifying the percentage of life insurance business and general insurance business to
be undertaken by the insurer in the rural or social sector
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INTRODUCTION TO ULIP:
The concept of ULIP came in to existence in 1960s to provide an optimum balance
between protection and investment.
ULIP distinguishes itself through the multiple benefits it provides to the policyholders.
These plans are designed with a view to help the customers to utilize the market opportunities
by investing in the share market, capital market and at the same time have the facility of Death
Benefit and Maturity Benefit.
Unit-linked life insurance products are those where the benefits are expressed in terms
of number of units and unit price. They can be viewed as a combination of insurance and
mutual funds.
The number of units that a customer would get would depend on the unit price when he
pays his premium. The daily unit price is based on the market value of the underlying assets
(equities, bonds, government securities, et cetera) and computed from the net asset value.
The advantage of unit-linked plans is that they are simple, clear, and easy to understand.
Being transparent the policyholder gets the entire upside on the performance of his fund.
Besides all the advantages they offer to the customers, unit-linked plans also lead to an efficient
utilization of capital.
Unit-linked products are exempted from tax and they provide life insurance. Investors
welcome these products as they provide capital appreciation even as the yields on government
securities have fallen below 6 per cent, which has made the insurers slash payouts.
According to the IRDA, a company offering unit-linked plans must give the investor an
option to choose among debt, balanced and equity funds.
If you choose a debt plan, the majority of your premiums will get invested in debt securities
like gilts and bonds. If you choose equity, then a major portion of your premiums will be
invested in the equity market. The plan you choose would depend on your risk profile and your
investment need.
The ideal time to buy a unit-linked plan is when one can expect long-term growth
ahead. This is especially so if one also believes that current market values (stock valuations)
are relatively low.
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So if you are opting for a plan that invests primarily in equity, the buzzing market could
lead to windfall returns.
If one invests in a unit-linked pension plan early on, say when one is 25, one can afford
to take the risk associated with equities, at least in the plan's initial stages. However, as one
approaches retirement the quantum of returns should be subordinated to capital preservation. At
this stage, investing in a plan that has an equity tilt may not be a good idea.
Considering that unit-linked plans are relatively new launches, their short history does
not permit an assessment of how they will perform in different phases of the stock market.
Even if one views insurance as a long-term commitment, investments based on performance
over such a short time span may not be appropriate.
Simply put, ULIPs work very similar to a mutual fund with a life cover thrown in. They
have a mandate to invest the premiums in varying proportions in gsecs (government securities),
bonds, the money markets (call money) and equities. The primary difference between
conventional savings-based insurance plans like endowment and ULIPs is the investment
mandate- while ULIPs can invest upto 100% of the premium in equities, the percentage is
much lower (usually not more than 15%) in case of conventional insurance plans. ULIPs are
also available in multiple options like `aggressive' ULIPs (which can invest upto 100% in
equities), `balanced' ULIPs (which invest 40-60% in equities) and `debt' ULIPs (which invest
only in debt and money market instruments).
The exact expense structure/ break-up for ULIPs is as transparent as one would have
liked. Broadly speaking, ULIP expenses are classified into three major categories:
1) Mortality Charges:
Mortality expenses are charged by life insurance companies for providing a life cover to the
individual. The expenses vary with the age, sum assured and sum-at-risk for the individual.
There is a direct relation between the mortality expenses and the above mentioned factors. In a
ULIP, the sum-at-risk is an important reference point for the insurance company. Put simply,
the sum-at-risk is the difference between the sum assured and the investment value the
individual's corpus as on a specified date.
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2. Sales and administration expenses:
Insurance companies incur these expenses for operational purposes on a regular basis. The
expenses are recovered from the premiums that individuals pay towards their insurance
policies. Agent commissions, sales and marketing expenses and the overhead costs incurred to
run the insurance business on a day-to-day basis are examples of such expenses.
3. Fund management charges (FMC):
These charges are levied by the insurance company to meet the expenses incurred on managing
the ULIP investments. A portion of ULIP premiums are invested in equities, bonds, gases and
money market instruments. Managing these investments incurs a fund management charge,
similar to what mutual funds incur on their investments. FMCs differ across investment optionslike aggressive, balanced and debt ULIPs; usually a higher equity option translates into higher
FMC.
Apart from the three expense categories mentioned above, individuals may also have to
incur certain expenses, which are primarily `optional' in nature- the expenses will be incurred if
certain choices that are made available to individuals are exercised.
a) Switching charges:
Individuals are allowed to switch their ULIP options. For example, an individual can switch his
fund money from 100% equities to a balanced portfolio, which has say, 60% equities and 40%
debt. However, the company may charge him a fee for `switching'. While most life insurance
companies allow a certain number of free switches annually, a switch made over and above this
number is charged.
b) Top-up charges:
ULIPs allow individuals to invest a top-up amount. Top-up amount is paid in addition to the
premium amount for a particular year. Insurance companies deduct a certain percentage from
the top-up amount as charges. These charges are usually lower than the regular charges that are
deducted from the annual premium.
c) Cancellation charges:
Life insurance companies levy cancellation charges if individuals decide to surrender their
policies (usually) before three years. These charges are levied as a percentage of the fund value
on a particular date.
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Having defined ULIP expenses, an illustration will help in understanding how they pan out as
well as their impact on returns over a period of time.
NAV concept:
It exhibits the value (or the price) that one has for his investment or one will have to
pay for his investment.
As, the investment made by different people are different, the value (or the price) is the
expressed in per unit terms. It helps in knowing the value of Insurance at any point of time.
Technical Calculation of NAV: -
UNIT Value = (Total market Value of all assets invested less expenses related to
Investment management / Total no.of outstanding units)
Factors affecting NAV:
Marketing Value of investment portfolio, Number of Units, Expenses and Investment
Income.
Ex: If 2,00,000 /- has been accumulated in the equity fund and the no. of units issued is
10,000 /- then the NAV of the equity fund is: -
2,00,000 / 10,000 = Rs 20 / -
As the equity market develop the fund grows from 2,00,000 / - to 220,000/-
Now the NAV = 2,20,000 / 10,000 = Rs 22 / -
If among these 10,000 units the policyholder has 5000 units ten the value of investment as of
now is Rs 1,10,000.
Thus a unit linked plan actually tells, what is the value of the fund.
BASIC FEATURES OF ULIP
1. Life protection
2. Investment and savings
3. Flexibility
4. Transparency
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5. Added Benefits
a) Death due to accident
b) Any kind of disability
c) Critical illness
d) Surgeries
6. Liquidity
7. Tax Planning
1) LIFE PROTECTION
Start
Working
Start a
Family
Children
Establishi
ng Career
Retiremen
t Time
The graph shows the various needs of the customer at different point of time,
individuals needs differ and his need for life protection fluctuates. ULIP satisfies the
varying needs of the customer providing him with more and more protection as and
when he requires, by allowing the policyholder to increase or decrease the death
benefit. It is usually multiple of the contribution being paid which ensure that the
contribution is adequate enough to provide life protection. And is also able to maintain
a same balance between protection and savings.
2) INVESTMENTS AND SAVINGS
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Short
term
debt
funds
Debt
funds
Balance
d funds
Equity
funds
Risk
ULIP provides the client with option of investing as per his risk appetite and gets returns
accordingly. These various options available for an indivual to make investment in
comparatively high risks instruments and get high returns. Below shown is a graph illustrating
the various investment options for a client.
Example 1: Here are four types of funds in which a client can invest. In each case the risk goes
on increasing with the type of fund. The client has an option to shift as the risk and return
orientation changes (Switch).
3. FLEXIBILITY:
The client has an option to choose the amount of sum assured and the premium amount he is
capable of paying. In case of certain plans of ULIP the client is allowed to choose the premium.
Exp: Lifetime and Lifetime I The client has a flexibility to decide the life cover according to his
financial needs, independent of premium selected.
Following points enumerate the flexibility feature of ULIP
a) Increase in death benefit.
As life cycle changes of a client he passes through various risks and
responsibilities. He can increase or decrease the death benefit accordingly.
b) Decrease in death benefit.
If the client is unable to pay the same amount of premium he can decrease the
death benefit with certain conditions applying according to the particular plans.
c) Premium holiday After paying the premium regularly for 3 years from the
starting date of the policy. The client can take a premium holiday if he is unable
to pay a particular premium due. On returning from the premium holiday the
client can pay the previous premiums if he desires or continue from that date.
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d) Choice of fund.
There are four kinds of funds available for a client of ULIP. He has a option to
switch between these four funds. He can either choose only one or invest in all
four depending on his risk tolerance.Switch between the funds
The policyholder has a choice two reallocate the premium paid by him on every
premium policy anniversary. He can switch between the above four funds to
avail the advantages of market fluctuations.
Table: Kinds of funds available for a client of ULIP
e) Top ups:Some times the client may have surplus amount after his expenses. ULIP allows
him to save that amount the investing in the insurance he can avail the benefit of
top up by paying extra premium, which will be invested in the share market by
the insurer company. The client gets expert fund management. The policyholder
is allowed to do as many top ups in the tenure of plan.
f) Premium redirection
The policyholder is allowed to reallocate the premium paid each time to
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Plan Plan objective Risk Investment pattern
Maximiser
(Growth)
High growth and capital
appreciation over a long
terms
High Equity and equity related
securities: Max 90%, Debt,
money market and cash : Min
10%
Balancer
(balanced)
Balance of capital
appreciation and study
returns over a long terms
Average Equity and equity related
securities: Max 40%, Debt,
money market and cash : Min
60%
Preserver Equal balance of capital
appreciation and study
returns over a long term
Low Debt instrument: Max 50%
Money market and cash Min
50%
Protector
(Income)
Study returns over a long
term.
Moderate Debt instrument: Max 100%
Money market and cash Max
25%
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different fund structure. Thus whenever the premium is due (As per the
premium payment mode), he can redirect the current premium into different
asset allocations than the previous time. This helps the policyholder to optimize
the funds in accordance to market with out using the switch option.
g) Assignment option:
The policyholder can assign the policy to any of the nominee or any bank in case
he has taken a loan on the title of the policy. Unfortunately if something happens
to the policyholder then the insurer will repay the loan taken by the client to the
extent of premium paid.4. Transparency:
ULIP products are transparent in terms of, the policyholder is aware of where
his contribution is being allocated. The policyholder is aware of the various charges
charged to him.
The Various charges of the ULIP are: -
a) Contribution related Charges- Running expenses of the policy
b) Administrative Charges- Issuance cost, distribution costs etc
c) Fund Management Fee- cost of being and selling the various financial instruments
for various funds.
d) Mortality Charges: cost of providing life protection
e) Rider charges: cost of other protection charges.
f) Surrender charges: cost to cover initial expenses
g) Bid offer charges: difference between the offer price of units and the selling price
i.e. bid price of units. It covers the cost of selling the policy.
h) Transaction specific charges: cost of changing funds, toping up the investment
component or withdrawals
Daily NAV: A feature that lets you know on a daily bases, how the money in
insurance plan is growing.
5. ADDED BENEFITS:
To get extra protection from the 3D effect ULIP provides the policyholder the
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advantage of rider attachments.
a. Death due to accident (ADBR)
b. Disability (ABR)
c. Critical Illness (CIBR)
d. Surgeries (MSAR) (Now discontinued)
6. LIQUIDITY:
The feature makes ULIP a marketable plan. The policyholder has an option of
withdrawals in case if need arises. ULIP provides easy access to the money as and when the
policyholder may requires. There are two types of withdrawal options.
a) Partialb) complete
The value of withdrawal reduces the death benefit by same amount. This facility can be
avail only after three full premium payment years are completed. The minimum worth of this
units and a maximum where in at least Rs. 10000/- worth units remain in all the funds put
together.
7. TAX PLANNING
This is another feature of ULIP. This is one of the motives of the policy holder to invest
in the insurance plans. They usually invest to avail the tax benefit. Regulation in India allows
tax benefits in the contribution paid under section 88, contribution paid for health riders
critical illness and major surgical is allowed tax benefits under section 80D, as per the
prevailing tax laws.
Maturity benefits are tax free under section 10(10)D, provided life come is at least 5
times of the annual contribution paid.
Death benefit is tax free under section 10(10)d.
Whit so many tax benefits available in one instrument ULIP tends to be an intelligent tax-
planning tool.
Modes of Premium Payment:Premiums are payable through any of the following modes:
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Cash*
Cheques
Demand Drafts
Pay Orders
Bankers Cheque
Internet facility as approved by the Company from time to time.
Electronic Clearing System
Credit Cards (Only standing instruction)
*Amount and Modalities will be subject to company Rules and relevant
legislation/regulations
Premium Payment frequency:
Your Premium will fall due in every policy year based on the periodicity of payment of
premiums, i.e.
Yearly,
Half-Yearly or
Monthly
How much does the coverage cost?
The most comprehensive coverage is also affordable. Below are the annual premium rates for a
Sum Assured of Rs. 500,000 for various policy terms and entry ages for Males.
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Age(Years) Policy Term
15 years 20 years 25 years
25 Rs. 2435 Rs. 2474 Rs. 273430 Rs. 2896 Rs. 3204 Rs. 3738
35 Rs. 4106 Rs. 4724 Rs. 5576
40 Rs. 6282 Rs. 7281 Rs. 8442
45 Rs. 9804 Rs. 11,182 Rs. 12,554
Premium in Rupees
The premiums are guaranteed for first five years from the date of commencement of the policy.
Thereafter, the premiums are annually reviewable. Any change in premium will only be
effected with approval from IRDA.
Above premiums are inclusive of modal rebate and Large SA discount & exclusive of any
service tax and education cess.
Waiting Period: No benefit in respect of Critical Illness Benefit (CIB) or Total & Permanent
Disability Benefit (TPDB) will be payable if it has occurred due to sickness within the first 6
months of the policy or first 3 months of the policy reinstatement date where the policy has
lapsed formore than 3months.
What is your Human Life Value?
Beyond all doubt, your life is invaluable. Yet, there is a certain worth that can be attributed to
the financial support you offer your parents, spouse or children. This worth is referred to as
Human Life Value (HLV). In the future, if your family does not have the protective blanket of
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your presence, they will no longer be able to enjoy the benefits of the income you earned. Put
simply, Human Life Value is the present value of your future earnings.
Why should you calculate your Human Life Value?
You should calculate your Human Life Value so you can accordingly invest in insurance plans
that provide your family with adequate finances and hence security even in your absence.
How do you determine your Human Life Value?
Your Human Life Value is determined by 3 factors:
1. Your age
2. Current and future expenses
3. Current and future income
As a thumb rule, if you are 30 years of age, you should insure yourself for an amount
approximately 8 times your annual income. At 35, your investment should be close to 6 times
your income. Of course, the exact amount of your investment should be determined by the
number of people who depend on you, your existing investments and your life stage. For
example, if you are 30 years of age and have two children and parents to provide for, the
amount you invest should be reflective of your requirements.
Calculate your Human Life Value NOW
Use our quick and easy Human Life Value Calculatorto determine your Human Life Value and
the corresponding amount you should invest. Start right away!
WORKING OF A ULIP PLAN
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http://172.16.53.38/public/Tools/Calculators/Calculator/Protection-Current-Situation-Calc.htmhttp://172.16.53.38/public/Tools/Calculators/Calculator/Protection-Current-Situation-Calc.htmhttp://172.16.53.38/public/Tools/Calculators/Calculator/Protection-Current-Situation-Calc.htm7/31/2019 Comparison between traditional plan &ULIPs AT ICICI
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For Example
A client put in regular contribution of Rs. 20,000 /-. From this amount a % is deducted as
contribution.
Therefore if the contribution related expense is 20% - Rs.4000/- will be deducted as
contribution charges.
The amount that is now available is Rs.20000-4000=16000/-
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Now, if the client who is available is aged 30 years were to take a life cover of 500,000/- then
mortality (1.50/- per thousand at the age of 30) charge of 750 /- will be deducted.
This amount will provide life cover to the policy. The remaining amount of 15,250/- will be
invested in any one of them or all of them.
The Investment is shown in terms of units. Thus if client invests in debt fund and the NAV of
the debt fund is Rs. 16/-(market price) then the no. of units that the client will get is
15,250/16=953.125. For this investment-fund management fee will be charged and the charges
for maintaining the policy an administrative charge are levied.
He same example would look as follows in a chart.
FLOW CHART OF A UNIU LINKED PLAN
Less 20%
20,000-4000=16000
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Contribution Contribution related
charges deducted
Mortality & RiderCharges deucted
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16,000-750=15,250
for the age 30- mortality at 1.50
per thousand
15,250/- invested in debt fund
at a NAV of 16/-
953.1250units allocated
NAV of debt fund 16/- per unit
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The client invests resultantin funds as chosen
Units Allocated
Represented as NAV
Life Protection
500,000
Investment inFunds
Debt / Equity orbalanced
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TRADITIONAL PLANS:
These are the oldest types of plans available. These plans cater to customers with a low risk
appetite. Some of the common features of traditional plans are:
1. Steady Investment
1. Major chunk of investible funds are in debt instruments
2. Steady and almost assured returns over the long term
2. Features
1. Death benefit is Sum Assured + guaranteed & vested bonus
2. Helps in asset creation as they are for a long tenure3. Premium to Sum Assured ratios are fixed for each plan and age.
Traditional plans have existed since the inception of Insurance. These plans have been
providing the policyholders, advantages of savings and protection.
But they lack, transparency, flexibility and liquidity etc that are available in either
Investment avenues. Ever since the Insurance sector was opened up, private players have been
trying to entice the customer with new and innovative policies.
Unlike traditional Insurance products, customers find unit linked plans more
transparent, flexible and easy to understand.
The key to good financial goals, risks appreciated and portfolio mix. The next step
would be allocate asset across different categories and systematically adhere to an investment
pattern, so that they work in tandem to meet ones requirements over the next month, year or
decade. Because of their flexibility to adjust to different life stage needs ULIPs have an upper
hand over the traditional plans.
Buying an ULIP is quite different from buying a traditional Life Insurance product. The
policyholder is totally aware of the various charges being charged to him and also about was
his contribution is being invested.
Ex: If 2,00,000 /- has been accumulated in the equity fund and the no. of units issued is
10,000 /- then the NAV of the equity fund is: -
2,00,000 / 10,000 = Rs 20 / -
As the equity market develop the fund grows from 2,00,000 / - to 220,000/-
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Now the NAV = 2,20,000 / 10,000 = Rs 22 / -
If among these 10,000 units the policyholder has 5000 units ten the value of investment as of
now is Rs 1,10,000.
Thus a unit linked plan actually tells, what is the value of the fund.
COMPARISON BETWEEN TRADITIONAL AND ULIP
Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A
brief detail of both segments:
Unit Linked Insurance Product: ULIPs have gained high acceptance due to attractive
features they offer. These include:
1. Flexibility
1. Flexibility to choose Sum Assured.
2. Flexibility to choose premium amount.
3. Option to change level of Premium /Sum Assured even after the plan has
started.
4. Flexibility to change asset allocation by switching between funds
2. Transparency:
1. Charges in the plan & net amount invested are known to the customer.
2. Convenience of tracking ones investment performance on a daily basis.
3. Liquidity:
1. Option to withdraw money after few years (comfort required in case ofexigency).
2. Low minimum tenure.
3. Partial / Systematic withdrawal allowed.
4. Fund Options.
5. A choice of funds (ranging from equity, debt, cash or a combination).
6. Option to choose your fund mix based on desired asset allocation.
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COMPANY PROFILE
Evolution of ICICI Prudential Life Insurance:
ICICI Prudential Life Insurance today announced that Emgee Muthoot, the Insurance
division of the Muthoot group, one of Kerala's largest banking and financial services groups,
has crossed the Rs 10 crore premium mark in a span of less than three years. Emgee Muthoot,
which began distributing ICICI Prudential's life insurance products under the corporate agency
relationship, has also emerged as ICICI Pru's largest non-bank partnership in the state.
ICICI Prudential Life Insurance pioneered the multi-channel distribution strategy in the
country, and Kerala has emerged as one of its most successful examples of this model. The
company has tied up with leading banks in the state, like Federal Bank and The South Indian
Bank, as well as some other strong retail financial services distributors such as Emgee
Muthoot. Each of these are key partners in ICICI Prudential's alternate distribution strategy and
contribute greatly to the company's business as well as awareness levels and customer
experience.
Speaking at the event, Ms Shikha Sharma, CEO & MD, ICICI Prudential Life
Insurance said, ''It's been wonderful to see the evolution of Emgee Muthoot into a diversified
financial services company. Ever since they decided to become corporate agents and distribute
our life insurance products in February 2002, they have made huge strides in training and
developing their workforce to sell a complex product like life insurance, and deliver value to
their customers. I believe that it is thanks to these efforts that they are today not only our
leading corporate agent in Kerala, but the second largest in the country''.
Mr. George Alexander Muthoot, Managing Director, the Muthoot group, said ''A few
years ago, we took a strategic decision to leverage our extensive branch network and thereby
expand the scope of the services we offer our customers. Our partnership with ICICI Prudential
has been fantastic, and today life insurance has become a core business for us. I believe that the
success of this relationship has been founded on our shared values and mission to deliver a
superior experience to our customers''.
Emgee Muthoot is one of the most successful corporate agents for ICICI Prudential, and has
been one of the frontrunners in the company's Partner Program, an initiative to strengthen
relationships with key partners. The group's strategic move towards a branch model of
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distribution in mid-2003 served as a catalyst for the group's life insurance foray, and the
company has earned over Rs 5 crore in premium income since the beginning of this financial
year alone.
ICICI Prudential's early start and continued focus on alternate channels, which include
bank tie-ups, corporate agents and brokers, has resulted in these channels contributing nearly
30% of ICICI Prudential's new business. Currently, ICICI Prudential has 7 bank relationships
and over 150 corporate agency and broker tie-ups.
Overview:
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one
of India's foremost financial services companies-and Prudential plc - a leading international
financial services group headquartered in the United Kingdom. Total capital infusion stands at
Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.
We began our operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of 2099
branches (inclusive of 1,116 micro-offices), over 276,000 advisors; and 18 bancassurance
partners.
ICICI Prudential is the first life insurer in India to receive a National Insurer Financial
Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has
been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen
ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and
customer base, we continue to tirelessly uphold our commitment to deliver world-class
financial solutions to customers all over India.
Mumbai, September 3, 2007: ICICI Prudential Life Insurance, India's leading private
life insurance company, has simultaneously crossed 2 significant milestones, further
strengthening its position as a market leader. It has become the first private life insurer to cross
the 5 million policies mark, a milestone that has pushed the company's assets held past the
20,000 crore milestone. Each of these achievements reflect the trust retail investors have
reposed in the company as well as the immense reach that the company has been able to build
over the past few years, particularly the last 18 months
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The ICICI Prudential Edge:
The ICICI Prudential edge comes from our commitment to our customers, in all that we
do - be it product development, distribution, the sales process or servicing. Here's a peek into
what makes us leaders.
1. Our products have been developed after a clear and thorough understanding of customers'
needs. It is this research that helps us develop Education plans that offer the ideal way to truly
guarantee your child's education, Retirement solutions that are a hedge against inflation and yet
promise a fixed income after you retire, or Health insurance that arms you with the funds you
might need to recover from a dreaded disease.
2. Having the right products is the first step, but it's equally important to ensure that our
customers can access them easily and quickly. To this end, ICICI Prudential has an advisor
base across the length and breadth of the country, and also partners with leading banks,
corporate agents and brokers to distribute our products .
3. Robust risk management and underwriting practices form the core of our business. With
clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and
hassle-free claims process.
4. Entrusted with helping our customers meet their long-term goals, we adopt an investmentphilosophy that aims to achieve risk adjusted returns over the long-term.
5. Last but definitely not the least, our team is given the opportunity to learn and grow, every
day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they
can deliver on our promise to cover you, at every step in life.
OUR VISION, MISSION QUALITY POLICY
To be the dominant Life, Health and Pensions player built on trust by world-class people and
service
This we hope to achieve by:
Understanding the needs of customers and offering them superior products and service
Leveraging technology to service customers quickly, efficiently and conveniently
Developing and implementing superior risk management and investment strategies to
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offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for our employees
And above all, building transparency in all our dealings
The success of the company will be founded in its unflinching commitment to 5 core values
-- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe
what the company stands for, the qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where we can play a
significant role in redefining and reshaping the sector. Given the quality of our parentage and
the commitment of our team, there are no limits to our growth.
Our values:
Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer
First, Boundaryless, Ownership, and Passion. These values shine forth in all we do, and have
become the keystones of our success.
Promoters:
ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the second
largest bank in the country with consolidated total assets of about US$ 95 billion as of March
31, 2009. ICICI Banks subsidiaries include Indias leading private sector insurance companies
and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI
Banks presence currently spans 19 countries, including India.
Prudential:
Established in London in 1848, Prudential plc is a leading internal retail financial
services group with significant operations in Asia, the US and the UK. Prudential has been
writing protection and savings insurance for over 160 years, and today has more than 21
million customers worldwide and over 249 billion in assets under management (as of
December 31, 2008). In Asia, Prudential is the leading Europe-based life insurer with
operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset management
companies in terms of overall assets sourced in Asia ex-japan, with ?36.8 billion funds under
management (as of December 31, 2008) and operations in ten markets including China, Hong
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Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.
The Company
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier
financial powerhouse, and Prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).
ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of March, 2009) with ICICI Bank
and Prudential plc holding 74% and 26% stake respectively. For the period April 1, 2008 to
March 31, 2009, the company has posted a growth of 13%, garnering total received premium
(new business + renewal) of Rs 15,356 crores as against Rs 13,563 crores in FY2008 and has
underwritten over 9 million policies since inception. The company has assets held over Rs.
32,000 crores as on March, 2009.
ICICI Prudential Life is also the only private life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest
rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers
at the time of maturity or claims.
For the past eight years, ICICI Prudential Life has retained its leadership position in the life
insurance industry with a wide range of flexible products that meet the needs of the Indian
customer at every step in life.
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STAGES IN POLICY ISSUANCE:
Proposal
A Proposal Stage is the First stage before the policy is issued at COPS. At this stage, the
application form is received by COPS, but it is pending for issuance due to further
clarifications required from the customer.
Login
A proposal, which is complete i.e., duly filled with all necessary documents
attached to it & accepted by the Branch ops, is called a Login
Reject
An Application gets rejected at the Branch Ops level due to necessary details not filled in
the form or necessary documents not submitted are a Reject. It is then sent back to the
Advisor for completion.
Issuance
Issuance means a policy that is issued to the Customer by Central Ops.
Decline Status
When a customer refuses to take a policy post login but before Issuance is called a Decline
Cancellation
When the cheque given by the customer bounces, it amounts to cancellation of the policy.
Lapse
A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.
Free look
Post issuance of the policy, the policyholder has the option to turn down the policy within
15 days from the date of issuance. This period of 15 days is called Free look Period.
Surrender When a customer wants to discontinue with the policy it is called
Surrender.
Distribution Channels:
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Tied Agency Channel
The Tied Agency Channel, as the name suggests, is driven by agents (advisors) of the
company. For insurance distribution, this is the most popular channel. This channel sourced
73% of ICICI Prudentials business in FY 2004.
Bank assurance:
Bank assurance is a setup whereby a tie up is made with a Bank. This distribution model works
on referral basis. The customer base of the bank that is made available to it benefits the
Insurance Company. The bank, in return earns referral commission for every policy issued to
the bank customer. In this arrangement, typically an employee of the ICICI Prudential is
stationed at the bank branch and he sources the business through walk-ins that happen at the
bank. His domain of prospective customers is a banks customer. Such agents put up at banksare called as Financial Service Consultant (FSC). Banc assurance, as an arrangement for
distribution, has been proved successful because of the extended reach that the insurance
company gets through the bank branch network.
Corporate Agents:
Corporate Agents (CAs) are corporate entities that source policies for the Insurance
Company with whom they have a tie-up. They are authorized to source policies for one
insurance company only. The difference between CA & Banc assurance arrangement is that the
former trains its own employees to sell the policies while in case of Banc assurance
arrangement, the employees of the insurance company (FSCs) source the business.
Brokers:
A variant of CAs, Brokers are not tied to a particular company and are allowed to source
business for more than one insurance company.
Direct Marketing:
Direct marketing, as a channel of distribution, is relatively a new one. It basically encompasses
all unconventional channels of distribution.Inter alia, it includes call center, Internet and other
mass media channels. All leads that come through this channel are then attended and closed by
our branches.
Advisor: An Advisor is the agent of the Company who sources or sells the policy for the
company. They are called as FOS - Feet on Street.
INSURANCE PRODUCT AND SERVICE:
ICICI Prudentials ultimate promise is financial security. A strong brand certainly boosts
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sale, but without customer-friendly, innovative products, even the best brand would not last
long. ICICI Prudentials product range has been developed on the understanding that different
people have their own sets of needs at various stages of their lives. It has thus built a flexible
portfolio of products that can be customized to cater to varying needs of people at each stage,
and thus ensure protection in every step of life. The companys philosophy has been to help
customers understand their financial needs and work closely with them to customize a product
that would meet. Advisors can offer a complete range of products Savings plans, Child plans,
Market-linked plans, Protection plans, and Retirement plans and tailor a flexible solution to
meet customers changing needs at every stage of life. In fact, ICICI Prudential was the first to
un-bundle product benefits, pioneering the concept of riders and soon after introduce
comprehensive market-linked and retirement plans. ICICI Prudential has launched a handful ofproducts that are analyzed below: ICICI Prudential's life insurance products may be loosely
categorized under three forms: pure life insurance products without an investment angle to
them; a product that is a mix of a cumulative investment scheme and an insurance product; and,
finally, standard products such as money-back and endowment policies.
PRODUCTS:
Insurance Solutions for Individuals
ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that
meet the needs of customers at every life stage. Its products can be enhanced with up to 4
riders, to create a customized solution for each policyholder.
Life Time Gold is a unit-linked plan which offers potentially higher returns over the long
term with flexible investment options to help you achieve your goals. It offers 8 fund
options - Preserver, Protector, Return Guarantee Fund, Balancer, Flexi Balanced Multiplier,
R.I.C.H and Flexi Growth.
Life Stage RP is unit linked plan that provides you with an option of lifecycle-based
portfolio strategy that continuously re-distributes your money across various asset classes
based on the customers profile, helping him achieve his desired financial goals.
LifeLink Super is a single premium unit linked insurance which offers attractive premium
allocation along with the opportunity to enjoy potentially high returns over the long term,
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without compromising on the protection of your family.
InvestShield Life New is a unit linked plan that provides premium guarantee and allows
the customer to enjoy the benfits of potentially higher returns while guaranteeing him that
he will get back atleast all the premiums paid by him, while providing protection to your
family with a life insurance cover.
InvestShield Life New is a unit linked plan that provides premium guarantee and allows
the customer to enjoy the benfits of potentially higher returns while guaranteeing him that
he will get back atleast all the premiums paid by him, while providing protection to your
family with a life insurance cover.
InvestShield Cashbak is a unit linked plan that provides premium guarantee while
maintaing a balance between return, safety & liquidity.
Wealth Advantage s a unique whole life single premium unit linked plan that provides
long term coverage upto the age of 70 years and provides you the option to systematically
withdraw your money.
Life Stage Assure a unit linked insurance plan that provides Guaranteed Maturity Addition
of 100%- 450% of first year premium based on the term and number of premiums paid,
with the additional advantage of a lifecycle based portfolio strategy that allocates the
investors money across various asset classes based on his age and risk appetite
Protection Solutions
Pure Protect is a flexible and affordable term product, with which you can ensure your
life and provide total security for your family in case of an unfortunate event.
Life Guard is a protection plan, which offers life cover at low cost. It is available in 2
options level term assurance with return of premium & single premium.
Home Assure is a mortgage reducing term assurance plan designed specifically to help
customers cover their home loans in a simple and cost-effective mannerChild Plans:
Smart Kid New ULRP: The policy is designed to provide money at key educational
milestones in the child's life. SmartKid plans are also
Retirement Solutions:
Forever Life is a traditional retirement product that offers guaranteed returns for
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the first 4 years.
Life Time Super Pension is a regular premium unit linked pension plan that helps
one accumulate over the long term and offers 5 annuity options (life annuity, life
annuity with return of purchase price, joint life last survivor annuity with return of
purchase price, life annuity guaranteed for 5,10 and 15 years & for life thereafter,
joint life, last survivor annuity without return of purchase price) at the time of
retirement.
Life Stage Pension is a regular premium unit linked pension plan that provides you
with a unique lifecycle-based strategy that continuously re-distributes your money
across various asset classes based on your age and risk profile.
Life Link Super Pension is a single premium unit linked pension plan.
Immediate Annuity is a single premium annuity product that guarantees income
for life at the time of retirement. It offers the benefit of 5 payout options.
Health Solutions:
Hospital Care is a fixed benefit plan covering various stages of treatment
hospitalization, ICU, procedures & recuperating allowance. It covers a range of
medical conditions (900 surgeries) and has a long term guaranteed coverage upto 20
years.
Crisis Cover is a 360-degree product that will provide long-term coverage against
35 critical illnesses, total and permanent disability, and death.
Diabetes Care Active is a long term insurance policy created for individuals with
Type II diabetes and pre-diabetes. It offers long term (upto 20 years) control over
diabetes through a specially designed Wellness Programme including regular healthcheckups and a Diabetes Coach to facilitate diabetes management. It also provides
you coverage against seven major critical illnesses.
Cancer Care is a regular premium plan that pays cash benefit on the diagnosis as
well as at different stages in the treatment of various cancer conditions.
Medical Assure is a health insurance policy that provides assured insurability till
age 75 years, assured coverage for accepted pre-existing illnesses after 2 years and
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an assured price for 3 years.
Health Saver provides comprehensive hospitalization cover and reimburses all
other medical expenses by building a health fund.
available in traditional form
Flexible Rider Options:
ICICI Prudential Life offers flexible riders, which can be added to the Basic policy at a
marginal cost, depending on the specific needs of The customer.
Accident & disability benefit:
If death occurs as the result of an accident during the term of the policy, the beneficiary
receives an additional amount equal to the rider sum assured under the policy. If an accident
results in total and permanent disability, 10% of rider sum assured will be paid each year, from
the end of the 1st year after the disability date for the remainder of the base policy term or 10
years, whichever is lesser. If the death occurs while travelling in an authorized mass transport
vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.
Critical illness benefit:
Critical Illness Benefit Rider provides protection against 9 critical illnesses to the
policyholder when attached to the basic plan.
Waiver of premium:
On total and permanent disablement due to accident all future premiums under the base
plan will be waived till the end of the term of the rider or death of assured life, if earlier.
Income benefit rider:
In case of death of the Life Assured during the term of the policy, 10% of the Sum
Assured is paid annually to the nominee on each policy anniversary till the maturity of the
rider.
Table Ownership Pattern
Nature of relationship Name of the related party
Holding Company ICICI Bank Limited
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Substantial Interest Prudential Corporation Holdings LimitedFellow Subsidiaries ICICI Brokerage Services Limited
ICICI Venture Funds Management Company LimitedICICI Home Finance Company LimitedICICI Lombard General Insurance Company Limited
ICICI Trusteeship Services LimitedICICI Securities LimitedICICI Securities Inc.ICICI Securities Holding Inc.ICICI Investment Management Company LimitedICICI International LimitedICICI Bank UK LimitedICICI Bank CanadaICICI Bank Eurasia L.L.C. (formerly Investment Credit
Bank Limited Liability Company)Prudential ICICI Asset Management Company Limited
Prudential ICICI Trust LimitedICICI Property TrustKey management
personnel
Shikha Sharma, Managing Director N. S. Kannan, Executive
Director (appointed on August 1, 2005)
Significant influence
ICICI Prudential Life Insurance Company Limited
Employees Group Gratuity Cum Life Insurance Scheme
ICICI Prudential Life Insurance Company Limited
Employees Provident Fund ICICI Prudential Life Insurance
Company Limited Superannuation Scheme
Competitors:
LIFE INSURERS WebsitesPublic Sector
Life Insurance Corporation of India www.licindia.comPrivate Sector
Allianz Bajaj Life Insurance Company
Limited
www.allianzbajaj.co.in
Birla Sun-Life Insurance Company Limited www.birlasunlife.com
HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.comICICI Prudential Life Insurance Co. Limited www.iciciprulife.comING Vysya Life Insurance Company Limitedwww.ingvysayalife.comMax New York Life Insurance Co. Limited www.maxnewyorklife.comMetLife Insurance Company Limited www.metlife.comOm Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.comSBI Life Insurance Company Limited www.sbilife.co.inTATA AIG Life Insurance Company Limitedwww.tata-aig.comDabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com
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GENERAL INSURERSPublic Sector
National Insurance Company Limited www.nationalinsuranceindia.comNew India Assurance Company Limited www.niacl.comOriental Insurance Company Limited www.orientalinsurance.nic.inUnited India Insurance Company Limited www.uiic.co.in
Private Sector
Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.inICICI Lombard General Insurance Co. Ltd. www.icicilombard.comReliance General Insurance Co. Limited www.ril.comRoyal Sundaram Alliance Insurance Co. Ltd. www.royalsun.comTATA AIG General Insurance Co. Limited www.tata-aig.comCholamandalam General Insurance Co. Ltd. www.cholainsurance.comExport Credit Guarantee Corporation www.ecgcindia.comHDFC Chubb General Insurance Co. Ltd.
REINSURERGeneral Insurance Corporation of India www.gicindia.com
Market share:
ICICI Prudential Life Insurance hiked its market share to 42.72 per cent in the October-
November period last year, up from 37.92 per cent in first quarter and 38.85 per cent in the
second quarter of the current fiscal.
Its total share of the Rs 439.2-crore premium collected by private players during the April-
November period stood at 39.66 per cent. Its aggregate estimated premium income amounted to
Rs 174.2 crore as at the end of November. According to ICICI officials, while the premium
mop-up by private companies in April-June 2002 was about Rs 117 crore, the corresponding
figures for the July-September and October-November periods were Rs 201.3 crore and Rs
120.8 crore. Out of this, ICICIs premium income stood at Rs 44.4 crore, Rs 78.2 crore and Rs
51.6 crore, respectively.
They cited Irda statistics saying the total premium income of the life sector was Rs 1,191 crore
in April-June, 2002, and Rs 3,512.8 crore uptil September.
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ORGANIZATION STRUCTURE
BABASAB PATIL
BRANCH OFFICE
SALES OPERATION
SALES MGR SALES MGR SALES MGR
ASM ASMASM
AGENCYMGR AGENCYMGR AGENCYMGR
UNIT MGR UNIT MGR UNIT MGR
FINANCIAL
ADVISORS
FINANCIAL
ADVISORS
FINANCIAL
ADVISORS
REGIONALHEAD
OPERATOR
ZONAL MGR
STATE
MGR
BRANCH
MGR
TEAM LEADER
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BOARD OF DIRECTORS
Ms. Chanda .D. Kochhar : Chairperson
Mr. N. S. Kannan : Director
Mr. K. Ramkumar : Director
Mr. Barry Stowe : Director
Mr. Adrian OConnor : Director
Mr. Keki Dadiseth : Director
Prof. Marti G. Subrahmanyam : Director
Ms. Rama Bijapurkar : Director
Mr. Vinod Kumar Dhall : Director
Mr. V. Vaidyanathan : Managing Director & CEO
Management team
Mr.V.Vaidyanathan, : Managing Director & CEO
Ms. Anita Pai, : Executive Vice Presiden Customer Service,
Technology & Marketing
Dr. Avijit Chatterjee, : Appointed Actuary
Mr. Puneet Nanda, : Executive Vice President
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http://www.iciciprulife.com/public/About-us/ProfileTeam-Vaidyanathan.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-AnitaPai.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-Dr.%20Avijit%20Chatterjee.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-PuneetNanda.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-Vaidyanathan.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-AnitaPai.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-Dr.%20Avijit%20Chatterjee.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-PuneetNanda.htm7/31/2019 Comparison between traditional plan &ULIPs AT ICICI
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Awards and Achievements
Innovation Award for launching
Diabetes Care Prudence Award
2006
People Award for excellence in
training and people development
Prudence Award 2006
India's Most Customer
Responsive Insurance Company- Economic Times Customer
Responsiveness Awards
Most Trusted Private Life Insurer: The Economic Times - A C Nielsen
Survey of Most Trusted Brands 2004
Prudence Customer Centricity
Award - 2004 & 2005:
Prudential Corporation Asia
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Best Life Insurer
2003: Outlook
Money Awards2003-04
IMM Award for Excellence: Institute of Marketing & Management
Organization with Innovative HR Practices: Indira Group of Institutes
Superbrand 2003-04
Organization with Innovative HR Practices: Asia-Pacific H R Congress
Awards for HR Excellence
Silver Effie for
Effectiveness of
the Retire from
Work not life
advertising
campaign: Effies
2003
Most Trusted Private Life Insurer: The Economic Times - A C Nielsen
Survey of Most Trusted Brands 2003
Best New Insurer: Outlook Money Awards 2003
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Data source:
Primary Data: Personal interactions, Observations
Training programs. Through Questionnaire
Secondary Data: Study material by IRDA and ICICI Prudential.
Related websites,
Past records of ICICI Prudential.&
Brochures and pamphlets of ICICI Prudential
Sampling:
a) Population : People Hubli city
b) Size : 100 size
c) Method : Random sampling
MEASURING TOOLS:
SPSS Software used for measuring the response is in terms of percentage method using
graphical charts like Bar graphs & Pie charts.
ANALYSIS:
1. Gendor:
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Frequency Percent Valid
Percent
Cumulative
Percent
Valid Male 73 73.0 73.0 73.0 Female 27 27.0 27.0 100.0 Total 100 100.0 100.0
gendor
gendor
femalemale
Frequency
80
60
40
20
0
Interpretation:
According to survey we have come to now the out of 100 responds in that
73% are male and 27% female. Therefore male are more than female in Hubli city.
2. Occupation
Frequency Percent ValidPercent
Cumulative Percent
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Validgovernmentemployee
9 9.0 9.0 9.0
privateemployee
36 36.0 36.0 45.0
student 1 1.0 1.0 46.0
businessman
29 29.0 29.0 75.0
Others 25 25.0 25.0 100.0
Total 100 100.0 100.0
occupation
occupation
others
bussiness man
student
private employee
goverement employee
Frequency
40
30
20
10
0
Interpretation:
According survey i came know that at 9% are government,36% are private people, 1%
Are student, 29% are businessman, 25% are other.
3. Why did you go for ICICI prudential life insurance?
Frequency Percent
ValidPercen
t
Cumulative Percent
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Validbrand name 39 39.0 39.0 39.0
productprofile
18 18.0 18.0 57.0
advisors
connivanceability
36 36.0 36.0 93.0
advertisement 7 7.0 7.0 100.0
Total 100 100.0 100.0
why did you go for icici pru life insurance
why did you go for icici pru life insurance
advertsement
advisors convinacy a
product profile
brand name
Fre
quency
50
40
30
20
10
0
Interpretation:
From above table clear that brand name 39%, product profile 18%, advisors
convince ability 36%, advertisement 7% .
4. Your savings consist of
Frequency Percent Valid Percent Cumulative
PercentValid post office 17 17.0 17.0 17.0
bank f,d 10 10.0 10.0 27.0
Shares 6 6.0 6.0 33.0
land/ building 6 6.0 6.0 39.0
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Life
insurance
55 55.0 55.0 94.0
Gold 3 3.0 3.0 97.0
not respond 3 3.0 3.0 100.0
Total 100 100.0 100.0
your savings consist of
not respond
gold
life insurance
land/ building
shares
bank f,d
post off ice
Interpretation:According to survey we have come to know that 17% of responds are saving
There income in post office, 10% responds are saving in bank f.d, 6% responds are
Saving there income in shares, 6% responds are saving there income in land/building, out of
100 responds are 55% peoples are saving there income in life insurance because to protect
there life in future.3% people are save there income in gold and 3% are not responds there
income
5. The following insurance plan you haveFrequency Percent Valid
Percent
Cumulative
PercentValid smart kid 16 16.0 16.0 16.0
life time
gold
16 16.0 16.0 32.0
cash back 9 9.0 9.0 41.0retirement
solution
10 10.0 10.0 51.0
if other
specify
31 31.0 31.0 82.0
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Interpretation:
According to survey we have come to know that 63% of responds
There premium amount 5000-10000, and 13% responds are prefer to10000-20000
Only 2% responds are premium 20000-50000, 1% and 21% 50000 above and not responds
7. Did you know about the life insurance?
Frequency Percent Valid
Percent
Cumulative
PercentValid magazines/n
ews papers
1 1.0 1.0 1.0
television 5 5.0 5.0 6.0
advisors 55 55.0 55.0 61.0Friends 20 20.0 20.0 81.0
relatives 6 6.0 6.0 87.0
not respond 13 13.0 13.0 100.0Total 100 100.0 100.0
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did you know about the life insurance?
not respond
relatives
friends
advisors
television
magaznes/new s papers
Interpretation:
According to survey we have come to know out of 100 responds are know
about the life insurance from different sources 1% responds magazines/news papers 5%
respondent are 5% respondent are television more of respondent are come to know from
advisors,20% respondent are friends,6% are relatives and 13%are not respond.
8. Are aware of ulip and traditional plan?
Frequency Percent Valid
Percent
Cumulative
Percent
Valid Yes 61 61.0 61.0 61.0
No 32 32.0 32.0 93.0
not respond 7 7.0 7.0 100.0
Total 100 100.0 100.0
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are aware of ulip and traditional plan?
are aware of ulip and traditional plan?
not respondnoyes
Frequency
70
60
50
40
30
20
10
0
Interpretation:
According to survey we have come to know that most of people are ulip
Which is 61%and 32% are traditional plan and reaming are not respondent.
9. In which companies have you invested
Frequency Percent Valid
Percent
Cumulative
PercentValid LIC 19 19.0 19.0 19.0
ICICI pru life
insurance
44 44.0 44.0 63.0
Bajaj Allianz 14 14.0 14.0 77.0
not respond 23 23.0 23.0 100.0
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Total 100 100.0 100.0
in which company have you invested
in which company have you invested
not respondbajaj allianzicici pru life insurlic
Frequency
50
40
30
20
10
0
Interpretation:
According to survey we have come to know that 19% respondent are invested in LIC
life insurance 44% are peoples are ICICI prudential insurance,14% are Invested are in Bajaj
Allianz life insurance and remaining 23% are not respondent.
10. For what purpose you invested in that company?
Frequency Percent Valid
Percent
Cumulative
PercentValid tax saving 14 14.0 14.0 14.0
risk cover 42 42.0 42.0 56.0Returns 21 21.0 21.0 77.0Safety 6 6.0 6.0 83.0Others 1 1.0 1.0 84.0not respond 16 16.0 16.0 100.0Total 100 100.0 100.0
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for what purpose you invested in that company
for what purpose you invested in that company?
not respondotherssaftyreturnsrisk covertax saving