ICICI prudentional

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A Project ReportOn

STUDY ON LIFE, HEALTH AND PENSION

INSURANCEAT

ICICI PRUDENTIAL

INTERNATIONAL

SCHOOLof

INFORMATICS&MANAGEMENT

(Formerly India International Institute of Management)

A Heritage of Vision A Legacy of Innovation

Under the guidance of Submittedby:

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PREFACE

The World is changing at the speed of thought. The Insurancemarket worldwide has seen some turbulence since the privatization

of the insurance industry in the year 2000. We have seen many

private sector Insurance players setting up operations.

A financial planner one said about life insurance buying habits ofIndians: they dont buy life insurance; its sold to them.

Unfortunate, but true. Individual awareness and understanding of

life insurance products is extremely low, and many among the

insured dont even know whether the life insurance needs, and in a

larger context, their personal financial needs.

Life insurance is chiefly a risk management tool, meant to offer

financial protection to our dependent in the unfortunate event of

death. But in India, as, in the most other developing market life

insurance has come to represent more than just risk cover.

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ACKNOWLEDGEMENT

As per of the MBA curriculum I choose ICICI Prudential Life Insurance Company,

Bhilwara for training. The summer training at ICICI Prudential has been a unique

experience for us. Instead of routine and mandatory exercise, it was a leap to new field

of knowledge and learning. We would like to express our highest respect and regard to

the employees of ICICI Prudential.

We are deeply obliged to Mr. Jitendra Gupta (Area Manager) whose guidance during

the course of training helped us not only in bringing out this report successfully but

also provided a real insight into the subject matter.We pay heartful gratitude and thanks to Mr. Kailash Meena (Unit Manager) for his

guidance and help during the course of training. We also acknowledge his

encouragement to us during the training.

MUKESH KUMARMBA (3rd sem.)

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TABLE OF CONTENTS

INDIAN INSURANCE INDUSTRY .........................................................................................................5Introduction .............................................................................................................................................5

What is Insurance ? .................................................................................................................................5Types of Insurance Plans - Traditional or Unit Linked (ULIP: Unit Linked Insurance Plan) ..................6

Benefits of Insurance ..............................................................................................................................7Need of Insurance ...................................................................................................................................8History Of Insurance Sector ...................................................................................................................9

Insurance Regulatory & Development Authority (IRDA) .......................................................................11INSURANCE MARKET IN INDIA ........................................................................................................13What is Life Insurance? ............................................................................................................................15

Benefits of Life Insurance ....................................................................................................................15Tax Profit: Tax relief in income tax and wealth tax availed on the premium paid for Life Insurance.. .16

Need for Life Insurance ........................................................................................................................16

Human Life Value .....................................................................................................................................18Role of life insurance ............................................................................................................................20

Major Life Insurance Policies ...................................................................................................................22List of Well-known Life Insurance Companies ...................................................................................245 reasons why health insurance is a must .............................................................................................29

Selecting the Right Plan ............................................................................................................................31What is General Insurance? ......................................................................................................................32ICICI Prudential Life Insurance ...............................................................................................................35

Overview ...............................................................................................................................................35The ICICI Prudential Edge .......................................................................................................................37Fact Sheet ..................................................................................................................................................39

Board of Directors ....................................................................................................................................40Management Team ....................................................................................................................................41

SERVICE STANDARDS .....................................................................................................................47SWOT ANALYSIS OF THE COMPANY ..........................................................................................48

STRENGTHS ............................................................................................................................................48RESEARCH METHODOLOGY .............................................................................................................53

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INDIAN INSURANCE INDUSTRY

IntroductionIndia is the largest democracy in the world having a population more than 1000

million. It is the 5th largest country sin the world in terms of Purchasing Power Parity(PPP).

Through Indias economic development, it becomes the most lucrative insurancemarkets in the world. Before the year 1999 there were monopoly of state run LifeInsurance Corporation of India (LIC) in life insurance sector and General InsuranceCorporation of India (GIC) with its four subsidiaries in general sector. In the wake ofreform process and passing Insurance Regulatory Development Act through Indian

Parliament in 1999, Indian Insurance was opened for private companies.

What is Insurance ?

Insurance in its basic form is defined as A contract between two parties whereby oneparty called insurer undertakes in exchange for a fixed sum called premiums, to paythe other party called insured a fixed amount of money on the happening of a certainevent."

In simple terms it is a contract between the person who buys Insurance and an

Insurance company who sold the Policy. By entering into contract the Insurancecompany agrees to pay the Policy holder or his family members a predetermined sumof money in case of any unfortunate event for a predetermined fixed sum payablewhich is in normal term called Insurance Premiums.

Insurance is basically a protection against a financial loss which can arise on thehappening of an unexpected event. Insurance companies collect premiums to providefor this protection. By paying a very small sum of money a person can safeguardhimself and his family financially from an unfortunate event.

For Example if a person buys a Life Insurance Policy by paying a premium to theInsurance company , the family members of insured person receive a fixedcompensation in case of any unfortunate event like death.

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The Insurance Company act as a trustee to the amount collected throughpremium.Insurance is generally classified in three main categories,(1) Life Insurance

(2) Health Insurance and

(3) General Insurance.

Types of Insurance Plans - Traditional or Unit Linked(ULIP: Unit Linked Insurance Plan)

Insurance Plans - At a glance

Broadly, insurance plans can be distinctly divided into ULIP (Unit Linked InsurancePlans) and traditional plans. A brief detail of both segments:

Unit Linked Insurance Plans

ULIPs have gained high acceptance due to attractive features they offer. Unit LinkedInsurance scheme 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

1. A choice of funds (ranging from equity, debt, cash or a combination).2. Option to choose your fund mix based on desired asset allocation.

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Traditional Plans

These are the oldest types of insurance plans available. These plans cater to customerswith a low risk appetite. Some of the common features of traditional plans are:

1. Steady Investment1. Major chunk of investible funds are in debt instruments.2. Steady and almost assured returns over the long term.

2. Features1. Death benefit is Sum Assured + guaranteed & vested bonus.2. Helps in asset creation as they are for a long tenure.3. Premium to Sum Assured ratios are fixed for each plan and age.4. Generally withdrawals are not allowed before maturity.

Benefits of Insurance

Insurance is the instrument of security, saving and peace of mind. It provides several

benefits by paying a small amount of premium to an insurance company as:

(1) Safeguards oneself and ones family for future requirements.

(2) Peace of mind in case of financial loss.

(3) Encourage saving.

(4) Tax rebate.

(5) Protection from the claim made by creditors.

(6) Security against a personal loan, housing loan or other types of loan.

(7) Provide a protection cover to industries, agriculture, women and

child.

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Need of Insurance

Life Insurance is a contract by which you can protect yourself against specific lossesby paying a premium over a period of time. Since each one of us, during our lives are

faced with numerous risks failing health, financial losses, accidents and evenfatalities, our instinct drives us to cover ourselves against those risks. Though aninsurance cover cant protect you against the emotional losses arising out of theserisks, it softens the economic crisis that usually accompanies these losses.

Life Insurance gains much more value if you are a nuclear family. Unlike in thetraditional joint family system, in a nuclear family, support from the extended familycannot be counted upon. So it is vital that you have an insurance cover as the

protective shield against unfortunate losses.

And its not only your life you could insure against those risks. With the InsuranceIndustry going through positive changes in the last few decades, now, you have avariety of risk coverage options. For instance, products in the market range fromwhole life insurance to covering risks associated with home loans.

Whats more, now you could choose life insurance as an investment option, thereturns of which you can enjoy at the most critical phases of your life for instance, atthe time of your childs admission into one of those dream institutes.

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History Of Insurance Sector

The insurance sector in India has come a full circle from being an open competitive

market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-degree turnwitnessed over a period of almost 190 years.The business oflife insurance in India in its existing form started in India in the year1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912 - The Indian Life Assurance Companies Act enacted as the first statute toregulate the life insurance business.1928 - The Indian Insurance Companies Act enacted to enable the government tocollect statistical information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with theobjective of protecting the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over by thecentral government and nationalized. LIC formed by an Act of Parliament, viz. LICAct, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to theTriton Insurance Company Ltd., the first general insurance company established in theyear 1850 in Calcutta by the British.Some of the important milestones in the general insurance business in India are:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact allclasses of general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of India,frames a code of conduct for ensuring fair conduct and sound business practices.

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1968 - The Insurance Act amended to regulate investments and set minimum solvencymargins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized thegeneral insurance business in India with effect from 1st January 1973.

Privatization in 1990s

As part of the wide-ranging economic reforms initiated in 1991, the structureof the Insurance sector was examined by a committee headed by Mr. R. N. Malhotra.The committees recommendation to open up the sector to private sector participationwas implemented by the Government in 2000. The key element in the reform processwas the participation of overseas insurance companies, through restricted to 26

percent of the capital.

With the Insurance Regulatory and Development Authority Act, 1999 (IRDA)formally coming into force, the insurance industry was opened up for private sector

participation.

The main objective of setting up the IRDA was to protect the interests ofpolicy holders and to regulate, promote and ensured orderly development of theinsurance industry.

Over four decades the industry has been a State monopoly. Till date the LIChas insured over 120 million individuals and has a vast sales network of over 7 lakhinsurance agents. The industry is witnessing an upsurge in consumer awareness,

building immense and unavoidable pressure among the players.

Within the short time since the opening up several insurance companies have beenlicensed by the IRDA.

Indian is a market of mainly small policies. The average annual life premium is

less than the equivalent of $ 100 Indian is also marketed by a very low insurancepenetration rate. Although no authentic statistics is available, a rough estimate is thatonly 20 percent of the insurable population is insured.

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Insurance Regulatory & Development Authority (IRDA)

MISSION

To protect the interests of the policyholders, to regulate, promote and ensure

orderly growth of the insurance industry and for matters connected therewith or

incidental thereto.

COMPOSITIONS OF AUTHORITY UNDER IRDA ACT,1999

IRDA was constituted by an act of parliament. The Authority is a 10 member teamconsisting of:

(a) A Chairman(b) Five Whole-time members(c) Four part-time members

DUTIES, POWERS AND FUNCTIONS OF IRDA

1) Subject to the provisions of Section 14 of IRDA Act, 1999 and any other lawfor the time being in force the Authority shall have the duty to regulate, promoteand ensure orderly growth of the insurance business and re-insurance business.

2) Without prejudice to the generality of the provisions contained inSubsection (1), the powers and functions of the Authority shall include-a) Issue to the applicant a certificate of registration, renew, modify,

withdraw, suspend or cancel such registration;

b) Protection of the interests of the policyholders in matters concerningassigning of policy, nomination by policyholders, insurable interest,settlement of insurance claim, surrender value of the policy and otherterms and conditions of contracts of insurance;

c) Specifying requisite qualifications, code of conduct and practicaltraining for intermediary or insurance intermediaries and agents

d) Specifying the code of conduct for surveyors and loss assessors;

e) Promoting efficiency in the conduct of insurance business;

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f) Promoting and regulating professional organizations connected withthe insurance and re- insurance business;

g) Levying fees and other charges for carrying out the purposes of thisAct

h) Calling for information from, undertaking inspection of, conductingenquiries and investigations including audit of the insurers,intermediaries, insurance intermediaries and other organizationsconnected with the insurance business;

i) Control and regulation of the rates, advantages, terms, and conditionsthat may be offered by insurers in respect of general insurance

business not so controlled and regulated by the Tariff Advisory

Committee under section 64U of the Insurance Act, 1938(4 of 1938)

j) Specifying the form and manner in which books of account shall bemaintained and statement of accounts shall be rendered by insurersand other insurance intermediaries;

k) Regulating investment of funds by insurance companies;

l) Regulating maintenance of margin of solvency;

m)Adjudication of disputes between insurers and intermediaries orinsurance intermediaries;

n) Supervising the functioning of the Tariff Advisory Committee;

o) Specifying the percentage of premium income of the insurer tofinance schemes for promoting and regulating professionalorganizations referred to in clause(f)

p) Specifying the percentage of life insurance business and generalinsurance business to be undertaken by the insurer in the rural orsocial sector ; and Exercising such other powers as may be prescribed

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INSURANCE MARKET IN INDIA

By any yardstick, India, with about 200 million middle class households, presents a

huge untapped potential for players in the insurance industry. Saturation of markets inmany developed economies has made the Indian market even more attractive forglobal insurance majors. Table 1 reflects the low percentage and per capita penetrationof insurance in India compared to other developed and developing countries2.

With the per capita income in India expected to grow at over 6% for the next 10 yearsand with improvement in awareness levels, the demand for insurance is expected togrow at an attractive rate in India. An independent consulting company, The MonitorGroup has estimated that the life insurance market will grow from Rs.218 billion in1998 to Rs.1003 billion by 2008 (a compounded annual growth of 16.5%)3.

Reforms

Reforms have marked the entry of many of the global insurance majors into the Indianmarket in the form of joint ventures with Indian companies. Some of the key namesare AIG, New York Life, Allianz, Prudential, Standard Life, Sun Life Canada and OldMutual. The entry of new players has rejuvenated the erstwhile monopoly player LIC,which has responded to the competition in an admirable fashion by launching new

products and improving service standards.

The following are the key winds of change brought about by privatizations.

Market Structure

There has been an overall expansion in the market. This has been possible due toimproved awareness levels due to the large number of advertising campaigns launched

by all the players. The scope for expansion is still unlimited as virtually all the playersare concentrating on large cities and towns- except by LIC to an extent there was nosignificant attempt to tap the rural markets.

Product innovation

There has been a plethora of new and innovative products offered by the new players,mainly from the stable of their international partners. Customers have tremendouschoice from a large variety of products from pure term

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(risk) insurance to unit-linked investment products. Customers are offered unbundledproducts with a variety of benefits as riders from which they can choose. Morecustomers are buying products and services based on their true needs and not just

traditional money-back policies, which is not considered very appropriate for long-term protection and savings. However, there are still some key new products yet to beintroduced- e.g. health products

Customer Service

Not unexpectedly, this was one area that witnessed the most significant change wit theentry of new players. There is an attempt to bring in international best practices inservice and operational efficiency through use of latest technologies. Advice and need

based selling is emerging through much better trained sales force and advisors. Thereis improvement in response and turnaround times in specific areas such as delivery offirst policy receipt, policy document, premium notice, final maturity payment,settlement of claims etc. However, there is a long way to go and various customersurveys indicate that the standards are still below customer expectation levels.

Channels of Distribution

Earlier the only mode of distribution of life insurance products was through Agents.While agents continue to be the predominant distribution channel, today a number of

innovative alternative channels are being offered to customers. Some of them are bankassurance, brokers, the internet and direct marketing. Though it is too early to predict,the wide spread of bank branch network in India could lead to banc assuranceemerging as a significant distribution mechanism.

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What is Life Insurance?

Human life is subject to risks of death and disability due to natural and accidentalcauses. When human life is lost or a person is disabled permanently or temporarily,

there is a loss of income to the household. The family is put to hardship. Sometimes,survival itself is at stake for the dependants. Risks are unpredictable. Death/disabilitymay occur when one least expects it. An individual can protect himself or herselfagainst such contingencies through life insurance.

Life insurance is insurance on human beings. Though Human life cannot be valued, amonetary sum could be determined which is based on loss of income in future years.Hence in life insurance, the Sum Assured (or the amount guaranteed to be paid in theevent of a loss) is by way of a benefit in the case of life insurance. Life insurance

products provide a definite amount of money to the dependants of the insured in casethe life insured dies during his active income earning period or becomes disabled onaccount of an accident causing reduction/complete loss in his income earnings.

Life insurance ensures that your family will receive financial support in your absence.Put simply, life insurance provides your family with a sum of money shouldsomething happen to you. It protects your family from financial crises.

An individual can also protect his old age when he ceases to earn and has no othermeans of income by purchasing an annuity product.

Benefits of Life Insurance

There are some benefits of Life Insurance as:

Protection: Life Insurance guarantees full protection against risk of death of the

assured. In case of death, full sum assured is payable.

Long term saving: Life Insurance encourages long term saving by paying a small

premium in easy installments for a long period a handsome saving can be achieved.

Liquidity: Loan can be obtained against a policy assured whenever

required.

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Tax Profit: Tax relief in income tax and wealth tax availed on the premium paid forLife Insurance.

Need for Life Insurance

Today, there is no shortage of investment options for a person to choose from. Modernday investments include gold, property, fixed income instruments, mutual funds andof course, life insurance. Given the plethora of choices, it becomes imperative to makethe right choice when investing your hard-earned money. Life insurance is a uniqueinvestment that helps you to meet your dual needs - saving for life's important goals,and protecting your assets.

Life insurance is an effective tool that assists you to plan for your future such that youare financially equipped to meet all your goals.1) Your family's protection - so that your loved ones are secure should anunfortunate event happen to you. Buying Life insurance assures that your familyreceives a lumpsum that safely tides them over any financial crises that might occur inyour absence.2) Child's education: As parent, your primary responsibility is to ensure yourchildren's future. Our Education Insurance plans ensure your child receives money atkey stages of his or her education even in your absence.

3) Savings: Savings plans allow you to steadily save towards a pre-decided goal in asecure manner. These plans provide you with a host of benefits. You can choose the

premium, the underlying fund in which you want to invest your money, the ratiobetween protection and investment as per your requirements.4) Retirement: Retirement plans help you secure regular income for your retired life.During the Accumulation phase, you systematically save while you are working.When you retire, the Payout stage of the plan begins. You then purchase an annuity,

which will serve as a steady stream of income, for the rest of your life.5) Health: An integral part for financial planning is protecting oneself against anymedical emergencies as well. Hence, a very prudent decision would be to choose acombination of plans that look after your finances and offer you a protective healthcover to ensure your financial planning is in track despite any major illnesses.

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Asset Protection

From an investor's point of view, an investment can play two roles - asset appreciation

or asset protection. While most financial instruments have the underlying benefit ofasset appreciation, life insurance is unique in that it gives the customer the reassuranceof asset protection, along with a strong element of asset appreciation.The core benefit of life insurance is that the financial interests of ones family remain

protected from circumstances such as loss of income due to critical illness or death ofthe policyholder. Simultaneously, insurance products also have a strong inbuilt wealthcreation proposition. The customer therefore benefits on two counts and life insuranceoccupies a unique space in the landscape of investment options available to a

customer.

Goal based savings

Each of us has some goals in life for which we need to save. For a young, newlymarried couple, it could be buying a house. Once, they decide to start a family, thegoal changes to planning for the education or marriage of their children. As one growsolder, planning for one's retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument inwhich you invest should offer corresponding benefits pertinent to the new life stage.Life insurance is the only investment option that offers specific products tailormadefor different life stages. It thus ensures that the benefits offered to the customer reflectthe needs of the customer at that particular life stage, and hence ensures that thefinancial goals of that life stage are met.

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The table below gives a general guide to the plans that are appropriate for differentlife stages.

Life Stage Primary Need Life Insurance Product

Young & Single Asset creation Wealth creation plans

Young & Just marriedAsset creation& protection

Wealth creation andmortgage protection

plans

Married with kids

Children'seducation,Asset creationand protection

Education insurance,mortgage protection &wealth creation plans

Middle aged withgrown up kids

Planning for

retirement &asset protection

Retirement solutions &mortgage protection

Across all life-stages Health plans Health Insurance

Human Life Value

What is your Human Life Value?

Beyond all doubt, your life is invaluable. Yet, there is a certain worth that can beattributed to the financial support you offer your parents, spouse or children. Thisworth is referred to as Human Life Value (HLV). In the future, if your family does nothave the protective blanket of 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 valueof your future earnings.

Why should you calculate your Human Life Value?

You should calculate your Human Life Value so you can accordingly invest ininsurance plans that provide your family with adequate finances and hence securityeven in your absence.

How do you determine your Human Life Value?

Your Human Life Value is determined by

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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 amountapproximately 8 times your annual income. At 35, your investment should be close to6 times your income. Of course, the exact amount of your investment should bedetermined by the number of people who depend on you, your existing investmentsand 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 yourrequirements.

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Role of life insurance

Role 1: Life insurance as "Investment"

Insurance is an attractive option for investment. While most people recognize the riskhedging and tax saving potential of insurance, many are not aware of its advantages asan investment option as well. Insurance products yield more compared to regularinvestment options, and this is besides the added incentives (read bonuses) offered byinsurers.

You cannot compare an insurance product with other investment schemes for thesimple reason that it offers financial protection from risks, something that is missingin non-insurance products.

In fact, the premium you pay for an insurance policy is an investment against risk.Thus, before comparing with other schemes, you must accept that a part of the totalamount invested in life insurance goes towards providing for the risk cover, while therest is used for savings.

In life insurance, unlike non-life products, you get maturity benefits on survival at theend of the term. In other words, if you take a life insurance policy for 20 years andsurvive the term, the amount invested as premium in the policy will come back to you

with added returns. In the unfortunate event of death within the tenure of the policy,the family of the deceased will receive the sum assured.

Now, let us compare insurance as an investment options. If you invest Rs 10,000 inPPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in thiscase, the access to your funds will be limited. One can withdraw 50 per cent of theinitial deposit only after 4 years.

The same amount of Rs 10,000 can give you an insurance cover of up toapproximately Rs 5-12 lakh (depending upon the plan, age and medical condition of

the life insured, etc) and this amount can become immediately available to thenominee of the policyholder on death.

Thus insurance is a unique investment avenue that delivers sound returns in additionto protection.

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Role 2: Life insurance as "Risk cover"

First and foremost, insurance is about risk cover and protection - financial protection,to be more precise - to help outlast life's unpredictable losses. Designed to safeguardagainst losses suffered on account of any unforeseen event, insurance provides youwith that unique sense of security that no other form of investment provides. By

buying life insurance, you buy peace of mind and are prepared to face any financialdemand that would hit the family in case of an untimely demise.

To provide such protection, insurance firms collect contributions from many peoplewho face the same risk. A loss claim is paid out of the total premium collected by theinsurance companies, who act as trustees to the monies.

Insurance also provides a safeguard in the case of accidents or a drop in income afterretirement. An accident or disability can be devastating, and an insurance policy canlend timely support to the family in such times. It also comes as a great help when youretire, in case no untoward incident happens during the term of the policy.

With the entry of private sector players in insurance, you have a wide range ofproducts and services to choose from. Further, many of these can be furthercustomized to fit individual/group specific needs. Considering the amount you have to

pay now, it's worth buying some extra sleep.

Role 3: Life insurance as "Tax planning"

Insurance serves as an excellent tax saving mechanism too. The Government of Indiahas offered tax incentives to life insurance products in order to facilitate the flow offunds into productive assets. Under Section 88 of Income Tax Act 1961, an individualis entitled to a rebate of 20 per cent on the annual premium payable on his/her life andlife of his/her children or adult children. The rebate is deductible from tax payable bythe individual or a Hindu Undivided Family. This rebate is can be availed upto a

maximum of Rs 12,000 on payment of yearly premium of Rs 60,000. By paying Rs60,000 a year, you can buy anything upwards of Rs 10 lakh in sum assured.(depending upon the age of the insured and term of the policy) This means that youget a Rs 12,000 tax benefit. The rebate is deductible from the tax payable by anindividual or a Hindu Undivided Family.

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Major Life Insurance Policies

There are a number of life insurance products whichoffer protection and also coupled with savings.Term Insurance Policy

A term insurance policy is a pure risk cover for a specified period of time.What this means is that the sum assured is payable only if the policyholder dieswithin the policy term. For instance, if a person buys Rs 2 lakh policy for 15-years, his family is entitled to the money if he dies within that 15-year period.

What if he survives the 15-year period? Well, then he is not entitled to any

payment; the insurance company keeps the entire premium paid during the 15-year period.

So, there is no element of savings or investment in such a policy. It is a 100 percent risk cover. It simply means that a person pays a certain premium to protecthis family against his sudden death. He forfeits the amount if he outlives the

period of the policy. This explains why the Term Insurance Policy comes at thelowest cost.

Whole Life Policy

Cover the insured for life. The insured does not receive money while he is alive; thenominee receives the sum assured plus bonus upon death of the insured.

As the name suggests, a Whole Life Policy is an insurance cover against death,irrespective of when it happens.

Under this plan, the policyholder pays regular premiums until his death,following which the money is handed over to his family.

This policy, however, fails to address the additional needs of the insured during hispost-retirement years. It doesn't take into account a person's increasing needs either.While the insured buys the policy at a young age, his requirements increase over time.By the time he dies, the value of the sum assured is too low to meet his family's needs.As a result of these drawbacks, insurance firms now offer either a modified WholeLife Policy or combine in with another type of policy

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Endowment Policy

Combining risk cover with financial savings, endowment policies is the most popularpolicies in the world of life insurance.

In an Endowment Policy, the sum assured is payable even if the insuredsurvives the policy term.

If the insured dies during the tenure of the policy, the insurance firm has to paythe sum assured just as any other pure risk cover.

A pure endowment policy is also a form of financial saving, whereby if theperson covered remains alive beyond the tenure of the policy, he gets back thesum assured with some other investment benefits.

In addition to the basic policy, insurers offer various benefits such as doubleendowment and marriage/ education endowment plans. The cost of such a policy isslightly higher but worth its value.

Annuities And Pension

An annuity product provides a series of monthly payments on stipulated datesprovided that the life assured is alive on the stipulated dates.

In an annuity, the insurer agrees to pay the insured a stipulated sum of money

periodically. The purpose of an annuity is to protect against risk as well as providemoney in the form of pension at regular intervals.

Over the years, insurers have added various features to basic insurance policies inorder to address specific needs of a cross section of people.

There are a variety of life insurance products to suit to the needs of various categoriesof peoplechildren, youth, women, middle-aged persons, old people; and also rural

people, film actors and unorganized labourers.

Life insurance products could be purchased from registered life insurers notified bythe IRDA. Insurers appoint insurance agents to sell their products. Public who areinterested to buy life insurance products should receive proper advice from insuranceagents/insurer so that a right product could be chosen to suit particular financial needs.

Thus life insurance policies offer protection and security to families and providehappiness to society.

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List of Well-known Life Insurance Companies

HDFC Standard Life Insurance Company Limited

Max New York Life Insurance Company Limited

ICICI Prudential Life Insurance Company Limited

Kotak Mahindra Old Mutual Life Insurance Limited

Birla Sun Life Insurance Company Limited

Tata AIG Life Insurance Company Limited

SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Private Limited

Bajaj Allianz Life Insurance Company Limited

Metlife India Insurance Company Private Limited

Aviva Life Insurance Company India Private Limited

Sahara India Insurance Company Limited

Reliance Life

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M arket share o f various L i fe Insurance C om panies in Ino f F Y 2 0 0 8

48.1

13 .

10 .

6 .2

4 .1

3 .4

3 .4

2 .41 .9

1.81 .51 .41 .2

0 .3

0 .2

L IC

ICICI PRU

A LL IA N Z B A

SBI L IFEH D F C S T A N

B I R L A S U N

R E L I A N C E

M A X N E W Y

O M K O T A K

A V IV A

T A T A A I G

ME T L I F E

I N G V Y S Y A

S H R I R A M L

B H A R T I A X

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WHAT IS HEALTH INSURANCE?

Health insurance is a type of insurance whereby the insurer pays the medical costs of

the insured if the insured becomes sick due to covered causes, or due to accidents. The

insurer may be a private organization or a government agency. Health insurance is oneof the most controversial forms of insurance because of the perceived conflict between

the need for the insurance company to remain solvent versus the need of its customers

to remain healthy, which many view as a basic human right.

Health insurance policies insure you against several illnesses and guarantee you stayfinancially secure should you ever require treatment. They safeguard your peace ofmind, eliminate all worries about treatment expenses, and allow you to focus yourenergy on more important things, like getting better. Let's learn more about the

various types of health insurance available, and what the best policy for you might be.

In the late 19th century, early health insurance was actually disability insurance, in the

sense that it covered only the cost of emergency care for catastrophic injuries that

could (and often did) lead to a disability. This artifact of history persisted right up to

the start of the 21st century in some jurisdictions, where all laws regulating health

insurance actually referred to disability insurance. Patients were expected to pay all

other health care costs out of their own pockets, under what is known as the fee-for-

service business model.

As the Industrial Revolution matured during the middle to late 20th century,

traditional disability insurance evolved into modern health insurance as both

employers and governments recognized the value of preventive care by encouraging

patients to seek regular checkups from primary care physicians. It is usually much

cheaper to treat diseases like cancer if they are diagnosed early.

Today, health insurance is one of the most regulated forms of insurance business in

those countries where it plays a dominant role in financing of health expenditures.

Spiralling healthcare costs and rapid technological advances in the medical field havetriggered the need for cost-containment by the health insurers without sacrificing the

interest of the policyholders or claimants. All these call for intervention by regulatory

authorities to protect the consumers.

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However, under the Insurance Regulatory Development Authority (IRDA) Act in

India, the powers of licensing and regulating insurance, including health insurance,

has been mandated under an act of parliament. Despite such a regulatory authority like

the IRDA, very little has been done by the regulatory authority to lay down ground

rules for hospitals which run health plans and may be required to register themselvesas insurers or hospital managed organisations (HMO).

Health insurance will protect you and your dependants against any financialconstraints arising on account of a medical emergency. Basically, the client pays asum of money called the Premium and in turn the Insurance firm would commit to paya predetermined sum of money to meet the customer's claims.

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Health Insurance policies in India - An OverviewThere are several health insurance or medical insurance plans in India. These can be

divided into the following categories based on the coverage offered:Hospitalization Plans: These health insurance plans cover your expenses in caseyou need to be hospitalized. Within this category, products may have different payoutstructures and limits for various heads of expenditure. The hospitalisation coveragemay be reimbursement based plans or fixed benefit plans. These plans aim to coverthe more frequent medical expenses. Click to know about our hospitalisationinsurance plan (Hospital Care).Critical Illness Plans: These health insurance plans provide you coverage against

critical illnesses such as heart attack, organ transplants, stroke, and kidney failureamong others. These plans aim to cover infrequent and higher ticket size medicalexpenses. Click to know about our critical illness plans (Crisis Cover, Health AssurePlus).

Specific Conditions Coverage: These plans are designed specifically to offer healthinsurance against certain complications due to diabetes or cancer. They may alsoinclude features such as disease management programs which are specific to thecondition covered. Click to know more about our diabetes (Diabetes Care, Diabetes

Care Plus, Diabetes Assure) and cancer (Cancer Care, Cancer Care Plus) suite ofproducts.

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5 reasons why health insurance is a must

Indians at greater risk

Reason 1:Lifestyles have changed. Indians today suffer from high levels ofstress. Long hours at work, little exercise, disregard for a healthy balanced dietand a consequent dependence on junk food have weakened our immune systemsand put us at an increased risk of contracting illnesses.

Reason 2:Rare non-communicable diseases are now common. Obesity, highblood pressure, strokes, and heart attacks, which were earlier considered rare,now affect an increasing number of urban Indians.

Shocking Truths

18% of the urban population suffers from hypertension, which leads to renalfailure, stroke and cardio-vascular diseases

30% of the population suffers heart attacks before age 40 66% of deaths today are due to cardio-vascular diseases Almost 3.5 million Indians suffer from diabetes Cardio-vascular diseases (CVDs) like heart disease and stroke are the main

causes of death and disability

The Cost Factor

Reason 3: Medical care is unbelievably expensive: Medical breakthroughshave resulted in cures for dreaded diseases. These cures, however, are availableonly to a select few. High operating expensestherapy for breast cancer costsas much as Rs. 2 lakhs for 3 dayshave restricted treatment to the richest. Infact, even among the affluent groups, 20% need to sell their valuable assets sothey can accumulate the required amount to meet healthcare costs.

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Reason 4: Indirect costs add to the financial burden: Indirect sources ofexpensetravel, boarding and lodging, and even temporary loss of incomeaccount for as much as 35% of the overall cost of treatment. Most often, weoverlook this fact when planning for medical expenses.

Reason 5: Incomplete financial planning: Most of us have insured our home,vehicle, childs education, and even our retirement years. Ironically however,we have not insured our health. We ignore the fact that illnesses strike withoutwarningand seriously impact our finances and eat into our savings in the

absence of a good health insurance or medical insurance plan. Over two thirdsof all Indians sell assets or dip into existing savings to meet healthcare costs.

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Selecting the Right Plan

Sound health cover planning ensures you receive both, direct medical expenses andindirect expenses, as soon as any medical emergency or hospitalisation event occurs.When investing, choose a health insurance solution that:

Covers a wide spectrum of medical conditions from the most basic to the mostcritical health complication

Includes a combination of reimbursement and fixed benefit plans, which enableyou to meet health expenses that include direct and indirect costs

An ideal health insurance solution must help cover for both the frequent andlow cost medical expenses while also enabling adequate coverage to meet less

frequent high cost critical complications as described in the diagram below

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What is General Insurance?

Insurance other than Life Insurance falls under the category of General Insurance.

General Insurance comprises of insurance of property against fire, burglary etc,personal insurance such as Accident and Health Insurance, and liability insurancewhich covers legal liabilities. There are also other covers such as Errors andOmissions insurance for professionals, credit insurance etc.

Insuring anything other than human life is called general insurance. Examples areinsuring property like house and belongings against fire and theft or vehicles againstaccidental damage or theft. Injury due to accident or hospitalisation for illness andsurgery can also be insured. Your liabilities to others arising out of the law can also beinsured and is compulsory in some cases like motor third party insurance.

Non-life insurance companies have products that cover property against Fire andallied perils, flood storm and inundation, earthquake and so on. There are productsthat cover property against burglary, theft etc. The non-life companies also offer

policies covering machinery against breakdown,there are policies that cover the hullof ships and so on. A Marine Cargo policy covers goods in transit including by sea,air and road. Further, insurance of motor vehicles against damages and theft forms amajor chunk of non-life insurance business.

In respect of insurance of property, it is important that the cover is taken for the actualvalue of the property to avoid being imposed a penalty should there be a claim. Wherea property is undervalued for the purposes of insurance, the insured will have to bear arateable proportion of the loss. For instance if the value of a property is Rs.100 and itis insured for Rs.50/-, in the event of a loss to the extent of say Rs.50/-, the maximumclaim amount payable would be Rs.25/- ( 50% of the loss being borne by the insuredfor underinsuring the property by 50% ). This concept is quite often not understood bymost insureds.

Personal insurance covers include policies for Accident, Health etc. Products offeringPersonal Accident cover are benefit policies. Health insurance covers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless

basis. The cashless service is offered through Third Party Administrators who havearrangements with various service providers, i.e., hospitals. The Third Party

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Administrators also provide service for reimbursement claims. Sometimes the insurersthemselves process reimbursement claims.

Accident and health insurance policies are available for individuals as well as groups.A group could be a group of employees of an organization or holders of credit cards ordeposit holders in a bank etc. Normally when a group is covered, insurers offer groupdiscounts.

Liability insurance covers such as Motor Third Party Liability Insurance, WorkmensCompensation Policy etc offer cover against legal liabilities that may arise under therespective statutes Motor Vehicles Act, The Workmens Compensation Act etc.Some of the covers such as the foregoing (Motor Third Party and WorkmensCompensation policy ) are compulsory by statute. Liability Insurance not compulsory

by statute is also gaining popularity these days. Many industries insure against Publicliability. There are liability covers available for Products as well.

There are general insurance products that are in the nature of package policies offeringa combination of the covers mentioned above. For instance, there are package policiesavailable for householders, shop keepers and also for professionals such as doctors,chartered accountants etc. Apart from offering standard covers, insurers also offercustomized or tailor-made ones.

Suitable general Insurance covers are necessary for every family. It is important toprotect ones property, which one might have acquired from ones hard earnedincome. A loss or damage to ones property can leave one shattered. Losses created bycatastrophes such as the tsunami, earthquakes, cyclones etc have left many homelessand penniless. Such losses can be devastating but insurance could help mitigate them.Property can be covered, so also the people against Personal Accident. A HealthInsurance policy can provide financial relief to a person undergoing medical treatmentwhether due to a disease or an injury.

Industries also need to protect themselves by obtaining insurance covers to protect

their building, machinery, stocks etc. They need to cover their liabilities as well.Financiers insist on insurance. So, most industries or businesses that are financed by

banks and other institutions do obtain covers. But are they obtaining the right covers?And are they insuring adequately are questions that need to be given some thought.Also organizations or industries that are self-financed should ensure that they are

protected by insurance.

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Most general insurance covers are annual contracts. However, there are few productsthat are long-term.

It is important for proposers to read and understand the terms and conditions of apolicy before they enter into an insurance contract. The proposal form needs to befilled in completely and correctly by a proposer to ensure that the cover is adequateand the right one.

Who should buy general insurance?

Anyone who owns an asset can buy insurance to protect it against losses due to fire ortheft and so on. Each one of us can insure our and our dependents health and well

being through hospitalisation and personal accident policies. To buy a policy the

person should be the one who will bear financial losses if they occur. This is calledinsurable interest.

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ICICI Prudential Life Insurance

We cover you, at every step in your life

Overview

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - oneof India's foremost financial services companies-and Prudential plc - a leadinginternational financial services group headquartered in the United Kingdom. Totalcapital infusion stands at Rs. 42.72 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 InsuranceRegulatory Development Authority (IRDA). Today, our nation-wide team comprisesof over 2000 branches (inclusive of 1,074 micro-offices), over 274,500 advisors; and20 bank assurance partners.ICICI Prudential is the first life insurer in India to receive a National Insurer FinancialStrength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICIPrudential has been voted as India's Most Trusted Private Life Insurer, by TheEconomic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As wegrow our distribution, product range and customer base, we continue to tirelesslyuphold our commitment to deliver world-class financial solutions to customers allover India.

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Vision:To make ICICI Prudential the dominant Life 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 services.

Leveraging technology to service customers quickly, efficiently and

conveniently.

Developing and implementing superior risk management and

investment strategies to offer sustainable and stable returns to our

policyholders.

Providing an enabling environment to foster growth and learning for

our employees.

And above all, building transparency in all our dealings.

Values:

The success of the company will be founded in its unflinching commitment to 5 corevalues - Integrity, Customer First, Boundary less, Ownership and Passion. Eachof the values describes what the company stands for, the qualities of our people andthe way we work.

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

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The ICICI Prudential Edge

The ICICI Prudential edge comes from our commitment to our customers, in all thatwe 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 ofcustomers' needs. It is this research that helps us develop Education plans that offerthe ideal way to truly guarantee your child's education, Retirement solutions that are ahedge against inflation and yet promise a fixed income after you retire, or Healthinsurance that arms you with the funds you might need to recover from a dreadeddisease.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 hasan advisor base across the length and breadth of the country, and also partners withleading 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 therebyensure a smooth and hassle-free claims process.4. Entrusted with helping our customers meet their long-term goals, we adopt an

investment philosophy that aims to achieve risk adjusted returns over the long-term.5. Last but definitely not the least, our 28,000 plus strong team is given theopportunity to learn and grow, every day in a multitude of ways. We believe thiskeeps them engaged and enthusiastic, so that they can deliver on our promise to coveryou, at every step in life.

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About the Promoters

ICICI Bank

ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the secondlargest bank in the country, with consolidated total assets of $1 1 2.6 billion as ofJune 30 , 2008. ICICI Banks subsidiaries include Indias leading private sectorinsurance companies and among its largest securities brokerage firms, mutual fundsand private equity firms. ICICI Banks presence currently spans 19 countries,including India.Established in London in 1848, Prudential plc, through its businesses in the UK,Europe, US, Asia and the Middle East, provides retail financial services products andservices to more than 21 million customers, policyholder and unit holders andmanages over 256 billion of funds worldwide (as of June 30, 2008). In Asia,

Prudential is the leading Europe-based life insurer with life operations in China, HongKong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan,Thailand, and Vietnam. Prudential is one of the largest asset management companiesin terms of overall assets sourced in Asia ex-japan, with 34.3 billion funds undermanagement (as of June 30, 2008) and operations in ten markets including China,Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and UnitedArab Emirates.

Prudential Plc

Established in London in 1848, Prudential plc, through its businesses in the UK,Europe, US, Asia and the Middle East, provides retail financial services products andservices to more than 20 million customers, policyholder and unit holders andmanages over 267 billion of funds worldwide (as of December 31, 2007). In Asia,Prudential is the leading European life insurance company with life operations inChina, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest retail fundmanagers for Asian sourced assets ex-Japan. Its fund management business hasexpanded into ten markets, comprising of China, Hong Kong, India, Japan, Korea,

Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

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Fact Sheet

The Company

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse, and Prudential plc, a leading international financialservices group headquartered in the United Kingdom. ICICI Prudential was amongstthe first private sector insurance companies to begin operations in December 2000after receiving approval from Insurance Regulatory Development Authority (IRDA).ICICI Prudential Life's capital stands at Rs. 42.72 billion (as of June 30, 2008) withICICI Bank and Prudential plc holding 74% and 26% stake respectively. For thequarter ended June 30, 2008, the company garnered Retail Weighted New Business

Premium of Rs. 1,174 crores as against Rs 810 crores for the quarter ended June 30,2007, thereby posting a growth of 45% and has underwritten over 6 lakh policies overthis period. The company has assets held over Rs. 26,900 crore as on June 30, 2008.ICICI Prudential Life is also the only private life insurer in India to receive a NationalInsurer 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 tomeet its obligations to customers at the time of maturity or claims For the past sevenyears, ICICI Prudential Life has retained its leadership position in the life insuranceindustry with a wide range of flexible products that meet the needs of the Indiancustomer at every step in life.

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Distribution

ICICI Prudential Life has one of the largest distribution networks amongst private lifeinsurers in India. It has a strong presence across India with over 2000 branches(includung 1,074 micro-offices) and an advisor base of over 274,500 (as on June 30,2008).The company has 20 bancassurance partners having tie-ups with ICICI Bank, Bank ofIndia, South Indian Bank, Shamrao Vitthal Co-Op Bank, Jalgaon Peoples Co-opBank, Ernakulam District Co-op Bank, Idukki District Co-op Bank, RatnagiriSindhudurg Gramin Bank, Solapur Gramin Bank, Wainganga Kshetriya GraminBank, Aryawart Gramin Bank, Jharkhand Gramin Bank, Narmada Malwa GraminBank, Baitarani Gramya Bank, Ratnagiri District Central Co-op Bank, Seva Vikas Co-op Bank, Sangli Urban Co-Operative Bank, Baramati Co-operative Bank, Ballia

Kshetriya Co-Operative Bank, The Haryana State Co-Operative Bank.

Board of Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputedpeople from the finance industry both from India and abroad.

Mr. K.V. Kamath, Chairman

Ms. Chanda Kochhar, Director

Mr. Barry Stowe, Director

Mr. H.T. Phong, Director

Prof. Marti G. Subrahmanyam, Director

Mr. Mahesh Prasad Modi, Director

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Ms. Rama Bijapurkar, Director

Mr. Keki Dadiseth, Director

Ms. Shikha Sharma, Managing Director

Mr. N.S. Kannan, Executive Director

Mr. Bhargav Dasgupta, Executive Director

Management Team

The ICICI Prudential Life Insurance Company Limited Management team comprisesreputed people from the finance industry both from India and abroad.

Ms. Shikha Sharma, Managing Director & CEO

Mr. N. S. Kannan, Executive Director

Mr. Bhargav Dasgupta, Executive Director

Ms. Anita Pai, Executive Vice President Customer Service & Technology

Dr. Avijit Chatterjee, Appointed Actuary

Mr. Puneet Nanda, Executive Vice President & Chief Investment Officer

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Group Companies

ICICI Bank

Prudential Plc

ICICI Lombard General Insurance

Prudential ICICI Mutual Fund

Market Potential

Only 25% of insurable population has been covered till this date

Much smaller ratio of the population is adequately covered (less than 23%)

Life premiums expected to increase from 6% to 18% of gross DomesticSavings by 2010

Why Life insurance from ICICI Prudential Life Insurance?

Strong parentage and long term commitment to this business

Ability to inject additional equity capital

Can support long gestation business

Renowned for transparency and high corporate governance standards

Track record in personal financial sector

Realistic promises and need based selling

Customized solutions

Commitment to customers

Superior service levels

Quality of advice

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Products

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centricproducts that meet the needs of customers at every life stage. Its products can beenhanced with up to 4 riders, to create a customized solution for each policyholder.Savings & Wealth Creation Solutions

Save'n'Protect is a traditional endowment savings plan that offers lifeprotection along with adequate returns.

CashBak is an anticipated endowment policy ideal for meeting milestone

expenses like a child's marriage, expenses for a child's higher education orpurchase of an asset. It is available for terms of 15 and 20 years. LifeTime Gold is a unit-linked plan that offers customers the flexibility and

control to customize the policy to meet the changing needs at different lifestages. It offers 7 fund options - Preserver, Protector, Balancer, Flexi BalancedMultiplier, R.I.C.H and Flexi Growth.

LifeStage RP is unit linked plan that provides you with an option of lifecycle-based portfolio strategy that continuously re-distributes your money acrossvarious asset classes based on your life stage. This will help you achieve theright Asset Allocation to meet your desired financial goals.

LifeLink Super is a single premium unit linked insurance plan which combineslife insurance cover with the opportunity to stay invested in the stock market.

Premier Life Gold is a limited premium paying plan specially structured forlong-term wealth creation.

InvestShield Life New is a unit linked plan that provides premium guaranteeon the invested premiums and ensures that the customer receives only the

benefits of fund appreciation without any of the risks of depreciation. InvestShield Cashbakis a unit linked plan that provides premium guarantee on

the invested premiums along with flexible liquidity options.

LifeStage Assure a unit linked insurance plan that provide upto 450 % of firstyear premium guarantee on maturity, with the additional advantage of alifecycle based portfolio strategy that allocates the investors money acrossvarious asset classes based on his life stage and risk appetite.

Protection Solutions

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LifeGuard is a protection plan, which offers life cover at low cost. It isavailable in 3 options - level term assurance, level term assurance with return of

premium & single premium. HomeAssure is a mortgage reducing term assurance plan designed specifically

to help customers cover their home loans in a simple and cost-effective manner.

Education Solutions

SmartKid New ULRP provides guaranteed educational benefits to a childalong with life insurance cover for the parent who purchases the policy. The

policy is designed to provide money at important milestones in the child's life.SmartKid plans are also available in traditional form.

Retirement Solutions

ForeverLife is a traditional retirement product that offers guaranteed returnsfor the first 4 years and then declares bonuses annually.

LifeTime Super Pension is a regular premium unit linked pension plan thathelps one accumulate over the long term and offers 5 annuity options (lifeannuity, life annuity with return of purchaseprice, joint life last survivor annuitywith 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.

LifeStage Pension is a regular premium unit linked pension plan that providesyou with a unique lifecycle-based strategy that continuously re-distributes yourmoney across various asset classes based on your life stage, eventually

providing you with a customized retirement solution. LifeLink 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 payoutoptions.

PremierLife Pension is a unique and convenient retirement solution with alimited premium paying term of three or five years, to suit professionals and

businessmen, especially those who require more flexibility and customizationwhile planning their finances.

Health Solutions

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Health Assure Plus: Health Assure is a regular premium plan which provideslong term cover against 6 critical illnesses by providing policyholder withfinancial assistance, irrespective of the actual medical expenses. Health AssurePlus offers the added advantage of an equivalent life insurance cover.

Cancer Care: is a regular premium plan that pays cash benefit on the diagnosisas well as at different stages in the treatment of various cancer conditions.

Cancer CarePlus: is a wellness plan that includes all the benefits of CancerCare and also provides an additional benefit of free periodical cancerscreenings.

Diabetes Care: Diabetes Care is a unique critical illness product speciallydeveloped for individuals with Type 2 diabetes and pre-diabetes. It makes

payments on diagnosis on any of 6 diabetes related critical illnesses, and alsooffers a coordinated care approach to managing the condition. Diabetes CarePlus also offers life cover.

Diabetes Care Plus: is a unique insurance policy that provides an additionalbenefit of life cover for Type 2 diabetics and pre-diabetics

Hospital Care: is a fixed benefit plan covering various stages of treatment -hospitalisation, ICU, procedures & recuperating allowance. It covers a range ofmedical conditions (900 surgeries) and has a long term guaranteed coverageupto 20 years.

Crisis Cover : is a 360-degree product that will provide long-term coverageagainst 35 critical illnesses, total and permanent disability, and death.

MediAssure is a health insurance policy that provides assuredinsurability tillage 75 years, assured coverage for accepted pre-existing illnesses after 2 yearsand an assured price for 3 years.

Group Insurance Solutions

ICICI Prudential Life also offers Group Insurance Solutions for companies seeking toenhance benefits to their employees.

Group Gratuity Plan: ICICI Prudential Life's group gratuity plan helps employers

fund their statutory gratuity obligation in a scientific manner and also avail of taxbenefits as applicable to approved gratuity funds.

Group Superannuation Plan: ICICI Prudential Life offers a flexible market linkedscheme that provides substantial benefits to both employers and employees. Bothdefined contribution (DC) and defined benefit (DB) schemes are offered to optimisereturns for members of the trust and rationalise cost. Members have the option of

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choosing from various annuity options or opting for a partial commutation of theannuity at the time of retirement.

Group Immediate Annuities: ICICI Prudential Life realises the importance ofprudent retirement planning. With this in mind, we have developed a suite of annuityproducts that not only give you an income for life but also provide you options tomatch your needs. In addition to the annuities offered to existing superannuationcustomers, we offer immediate annuities to superannuation funds not managed by us.

Group Term Plan: ICICI Prudential Life's flexible group term solution helpsprovide an affordable cover to members of a group. The cover could be uniform orbased on designation/rank or a multiple of salary. The benefit under the policy is paidto the beneficiary nominated by the member on his/her death.

Flexible Rider OptionsICICI Prudential Life offers flexible riders, which can be added to the basic policy at amarginal cost, depending on the specific needs of the customer.

1. Accident & disability benefit: If death occurs as the result of an accidentduring 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 totaland permanent disability, 10% of rider sum assured will be paid each year, fromthe 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 travellingin an authorized mass transport vehicle, the beneficiary will be entitled to twicethe sum assured as additional benefit.

2. Critical Illness Benefit: protects the insured against financial loss in the eventof 9 specified critical illnesses. Benefits are payable to the insured for medicalexpenses prior to death.

3. Waiver of Premium: In case of total and permanent disability due to an

accident, the future premiums continue to be paid by the company till the timeof maturity. This rider is available with SmartKid, LifeTime Plus, LifeTimeSuper and LifeTime Super Pension.

Income benefit rider: In case of death of the life assured during the term of thepolicy, 10% of the sum assured is paid annually to the nominee on each policyanniversary till the maturity of the rider.

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SERVICE STANDARDS

Six sigma

ICICI prudential realized early on that quality could be a significant differential withrespect to the competition. Hence it launched a six-sigma initiative as a qualitymeasurement tool to understand and fulfill customer needs, set industry benchmarksand make its operations salable with a focus on customers and costs. Through Sixsigma there has been a continuous focus on the customer, which fits in ideally with afocus on the customer, which fits in ideally with ICICI Prudentials customer centricapproach.

Investment philosophy

Their investment philosophy aims to proactively achieve superior risk-adjusted returnson our funds under management. The focus is on ensuring long-term safety, stabilityand profitability of portfolio.

The framework to achieve this objective is based on sound investment process andcontrols coupled with a rigorous and sophisticated risk management strategy. There isclearly articulated asset allocation strategy depending on risk characteristics of

corresponding liability.

Portfolio management is a function of extensive research and is based on data andreasoning. Debt investments target a judicious mix of credit and interest rate risk.Investments in equity target long term appreciation and follow a value orientedinvestment style.

Information technology

At ICICI Prudential, the strategic use of technology provides the consumer with valueadded services. There is a robust system which is employed as the backbone of thecompany. Initiatives have been taken to provide complete CRM solutions so that theconsumer can access complete information on the policies online, from accessing

payment details to sending in the premium. Channel partners can manage their entirebusiness on the web through premium alerts, client diaries and premium calculators.

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SWOT ANALYSIS OF THE COMPANY

STRENGTHS

Good brand name

ICICI and Prudential are one of the market leaders in their respective sectors.ICICI safety bonds enjoyed the highest AAA credit rating consistently. While

prudential is the fourth largest company in terms of revenue in the world. Moody hasrated ICICI Prudential as BA1 above Indian Democracy in terms of investment

security.

Handsome deposit with IRDA

ICICI Prudential has a deposit of total 800 crores with IRDA (InsuranceRegulatory Development Authority) as against the minimum capital of Rs. 100 Crore.This will assure that the claimants will get their money back on time without any

delay.

Latest Technology

All the branches and the offices of the company are connected through Intranetand all the modern means in the technology that helps in giving its customers promptservices. All the information about the company and its products is available on itssite(iciciprulife.com) in detail. For recruiting the FAs there is also a provision ofOnline Training for those FAs who are not able to join the Class room session.

A Complete and Diversified Product Portfolio

The company has a total number of 28 products on offer to the general public,keeping in mind the requirements of the public at different age levels. This is one ofthe vital strengths of the company.

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Fast and Accurate Services to the Customer

The mission statement of the company promises to provide superior productsand services to the customer by understanding their needs. The use of latest

technology helps the company to give to its customer fast and accurate service.

A Highly Trained and Professional Sales Force

All the employees who are associated with ICICI Prudential are highly trainedand professional in attitude. This quality staff ensures high quality pre and post salesservices.

Leader in terms of Premium Collected

The company was the best in terms of collection of premium. Premiumsexpected to rise from Rs. 26000 Crores to Rs. 5,12,000 Crores by 2010 and Life

premiums expected to increase from 6% to 8% of Gross Domestic Saving by 2010.

Investment in Secured Sector

Of the total premium collected in the last financial year, company has invested85% of that amount in Government Security and has kept the remaining 15% as a

reserve for pre claim settlements.

Branch Network

ICICI Prudential currently has many branches but are expanding this to 150which is more than any other private life insurance provider in India.

Strong Public and Market acceptance

With its good brand name ICICI Prudentials products enjoy a strong public&market acceptance.

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WEAKNESS

Low Reach

Since the company has started operations in Rajasthan recently its reach is verylimited while its rival LIC has reach in almost every part of the Rajasthan. Thecompany will have to think over expanding its operations as soon as possible.

Less Products to Offer

As compared to LIC the company does not have a Joint Life Policy to offer to the

public.

Moderate emphasis on Promotional efforts

An extremely moderate emphasis on its promotional effort while its rival BajajAllianz Life uses the Mouth Publicity.

Too Much Dependent On Government

The main reason behind the general public to buy insurance is the taxbenefits that assessee gets. If the government reduces the exemption givenunder different sections the Life Insurance public may think it otherwise to

buy the policy. Though the company aims to change the mindset of thepublic but still it is the biggest weakness in all-insurance companies.

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OPPURTUNITIES

Majority of the Market still Untapped

Under the survey that was carried out it was discovered that only 25% of the totalinsurable public has been covered till this date. Thus, its is a great opportunity forthe company to capture a good market share.

Capping in RBI bonds

The Reserve Bank of India offers a medium return tax saving bonds. But from

2002 financial year in the recent amendments there has been a capping on maximumamount i.e. 2 lacs that a person can invest. This is good opportunity for the companyto sell its investment products that also promises insurance with tax benefits.

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THREATS

Coming Up of many Private Players

After opening of this sector, there are many companies who have aligned withsome or the other foreign partner. Many banks are also coming up in this sector with a

plan of giving the risk cover to the account holders at a very cheap price.

Government

As discussed earlier, if the government comes up with an amendment where init plans to reduce the exemption under different sections, the company may find itdifficult to sell its products. This as of now is the biggest threat to the company.

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RESEARCH METHODOLOGY

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MEANING OF RESEARCH

Research in common parlance refer to a search for knowledge. Research is asystematic and scientific search for pertinent information on a specific topic. It is anart of scientific investigation.

SIGNIFICANCE OF RESEARCH

Research is a voyage of discovery. It is also said to be the pursuit of truth withthe help of study, observation, comparison and experiment. The role of research inseveral fields of applied economies, whether related to business or to economy as awhole, has greatly influenced in modern times. The increasing complex nature of

business and government has focused attention on the use of research in solvingproblems.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It maybe understood as a science how research is done systematically.It is necessary for a researcher to know not only the research methods/techniques butalso the methodology. Researcher not only need to know how to develop certainindices or tests, how to calculate the mean, the mode, the median or the standarddevition or chi-square, how to apply particular research techniques, but they also need

to know which of these methods of techniques, are relevant and which are not, andwhat would they mean and indicate and why?The scope of methodology is wider than that of research method. Thus, when we talkof research methodology we not only talk of he research method but also consider thelogic behind the method.

Now in this particular research I am concerned about the Life Insurance. Lifeinsurance is the only tool to secure our life in future. It also provides a safe guard tothe uncertainty of our life. Life insurance is the cheapest investment tool in which we

can earn more in a short period of time.

Objectives of the research:-

(1) To aware about the Life Insurance Company.

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(2) To compare ICICI Prudential with other Life Insurance Companies.

Research Design:-

A research design is the arrangement of conditions for collection and analysis of datain a manner that aims to combine relevance to the research purpose with economy in

procedureFor achieving these above mentioned objectives the exploratory research methodwas adopted.

Exploratory Research

The major emphasis in this type of research is on the discovery of ideas at hand. Themajor emphasis is on the discovery of ideas and insights. The exploratory study isgenerally helpful in breaking broad and vague problem into smaller. In the nutshell we

can say that exploratory research help in formulating hypothesis for the furtherresearch methods of exploratory research.

Literature survey

Experience survey Analysis of selected cases

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population. It

refer to the technique of the procedure the researcher would adopt in selecting itemsfor the sample.

Data Type:-

Primary Data: - Primary Data is the data and the information which is already notavailable in vario

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