A

Assignment

Titled

“Non-Banking Financial Institutions &

Insurance Companies in India”

Master of Business Administration

Submitted To: - Submitted By:- Miss Shweta Acharya Swati PanwarLecturer (MBA Deptt.) MBA III Sem

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TABLE OF CONTENTS

S. No. Topic Page No.

1. Non-Banking Financial Institutions in India 1

2. Industrial Credit and Investment Corporation of India (ICICI) 1

3. Indian Finance Corporation of India (IFCI) 3

4. Industrial Development Bank of India (IDBI) 6

5. Small Industries Development Bank of India (SIDBI) 8

6. National Bank for Agriculture and Rural Development (NABARD) 10

7. State Financial Corporation (SFCs) 12

8. Insurance Companies in India 14

9. Life Insurance Companies 14

10. General Insurance Companies 24

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Non-Banking Financial Institutions

Non banking financial institutions are the financial institution that does not meet legal definitions

for a bank but still provides banking services. NBFCs can also be financial institutions that

operate without a license. Non-banking Financial Institutions carry out financing activities but

their resources are not directly obtained from the savers as debt. Instead, these Institutions

mobilize the public savings for rendering other financial services including investment. All such

Institutions are financial intermediaries and when they lend, they are known as Non-Banking

Financial Intermediaries (NBFIs) or Investment Institutions.

Non-Banking Financial Institutions in India:-

Industrial Credit and Investment Corporation of India

(ICICI)

Introduction:-

ICICI Bank is India's second-largest bank with total assets of Rs. 3,849.70 billion (US$ 82

billion) at September 30, 2008 and profit after tax Rs. 17.42 billion for the half year ended

September 30, 2008. The Bank has a network of about 1,400 branches and 4,530 ATMs in India

and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial

services to corporate and retail customers through a variety of delivery channels and through its

specialized subsidiaries and affiliates in the areas of investment banking, life and nonlife

insurance, venture capital and asset management. The Bank currently has subsidiaries in the

United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong

Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in

United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our

UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares

are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited

and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange

(NYSE).

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Establishment:-

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,

and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%

through a public offering of shares in India in fiscal 1998, an equity offering in the form of

ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in

an all stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional

investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World

Bank, the Government of India and representatives of Indian industry. The principal objective

was to create a development financial institution for providing medium-term and long-term

project financing to Indian businesses. In the 1990s, ICICI transformed its business from a

development financial institution offering only project finance to a diversified financial services

group offering a wide variety of products and services, both directly and through a number of

subsidiaries and affiliates like ICICI Bank.

Objectives of ICICI:-

The corporation has been established for the purpose of assisting industries in the private sector

by undertaking the following functions:

1) Assisting in the creation, expansion and modernization of such enterprises.

2) Encouraging and promoting the participation of private capital, both internal and external.

3) Encouraging and promoting private ownership.

4) Expansion of investment market.

Functions of ICICI:-

(1). Personal Banking:

Deposits

Loans

Cards

Investments

Insurance

Demat services

Wealth management

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(2). NRI Banking:

Money Transfer

Bank accounts

Investments

Property Solutions

Insurance

Loans

(3). Business Banking:

Corporate net banking

Cash Management

Trade services

SME services

Online taxes

Custodial services

Sources of Funds:-

The ICICI was constituted with an authorized capital of Rs.100 crores. Its paid-up capital was

subscribed by Indian and foreign private institution, LIC, scheduled commercial banks, joint

stock companies and individuals. The corporation is permitted to augment its resources through

the issue of debentures and by restoring to borrowings from the government of India, World

Bank UK government and Agency for International Development.

Indian Finance Corporation of India(IFCI)

Introduction:-

Until the establishment of ICICI in 1956 and IDBI in 1964, Indian Finance Corporation of

India (IFCI) remained solely responsible for implementation of the government’s industrial

policy initiatives. It made a significant contribution to the modernization of Indian industry,

export promotion, import substitution, pollution control, energy conservation and generation

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through commercially viable and market- friendly initiatives. Some sectors that have directly

benefited from IFCI include:

Agro-based industry (textiles, paper, sugar)

Service industry (hotels, hospitals)

Basic industry (iron & steel, fertilizers, basic chemicals, cement)

Capital & intermediate goods industry (electronics synthetic fibers, synthetic plastics,

miscellaneous chemicals) and Infrastructure (power generation, telecom services).

Establishment:-

At the time of independence in 1947, India's capital market was relatively under-developed.

Although there was significant demand for new capital, there was a dearth of providers.

Merchant bankers and Underwriting firms were almost non-existent. And commercial banks

were not equipped to provide long-term industrial finance in any significant manner.

It is against this backdrop that the government established The Industrial Finance Corporation of

India (IFCI) on July 1, 1948, as the first Development Financial Institution in the country to cater

to the long-term finance needs of the industrial sector. The newly-established DFI was provided

access to low-cost funds through the central bank's Statutory Liquidity Ratio or SLR which in

turn enabled it to provide loans and advances to corporate borrowers at concessional rates.

Objectives of IFCI:-

Traditionally, IFCI has been meeting the changing requirements of the clients by endeavoring to

devise various schemes and financial products for multiple industry sectors. Major Financing

Schemes of IFCI included Project Financing and Financial Services mainly to the manufacturing

industry along with a diversified industrial portfolio.

1. Public Sector Undertakings

2. Manufacturing industry

3. Infrastructure projects

4. NBFCs

5. Participation in Private Equity

6. Promoter funding

7. Nodal Agency for Monitoring of SUGAR DEVELOPMENT FUND (SDF) loans.

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Functions of IFCI:-

1) Financial Assistance:-

The function of IFCI can be broadly classified into:

i) Grating loans or advances to or subscribing to debentures of industrial concerns

repayable within 25 years.

ii) Underwriting the issues of industrial securities i.e. shares, bonds, or debentures to be

disposed off within 7 years.

iii) Subscribing directly to the shares and debentures of public limited companies.

iv) Guaranteeing of deferred payments for the purchase of capital goods from abroad or

within India.

v) Acting as an agent of the Central Government of the World Bank in respect of loans

sanctioned to the industrial concerns.

2) Promotional Activities:-

The corporation discovers the opportunity for promoting new enterprises. It helps in developing

small and medium scale entrepreneurs by providing them guidance through its specialized

agencies in identification of projects. Preparing project profiles, implementation of the projects,

etc.

Sources of Funds:-

The financial resources of the Corporation companies: ownership capital, borrowings forms

Central government and the market by issue of bonds as mentioned below:

i) The corporation had an original authorized capital of Rs. 100 crores which has been later

increased to Rs. 259 crores.

ii) The corporation is authorized to issue and sell bonds and debentures for raising its working

capital. The limit has been fixed not to exceed ten times the amount of the IFCI,s paid up

share capital and retained earnings.

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Industrial Development Bank of India

IDBI

Introduction:-

The Industrial Development Bank of India Limited, now more popularly known as IDBI

Bank, was established as a wholly-owned subsidiary of Reserve Bank of India. The foundation

of the bank was laid down under an Act of Parliament, in July 1964. The main aim behind the

setting up of IDBI was to provide credit and other facilities for the Indian industry, which was

still in the initial stages of growth and development. In February 1976, the ownership of IDBI

was transferred to Government of India. After the transfer of its ownership, IDBI became the

main institution, through which the institutes engaged in financing, promoting and developing

industry were to be coordinated. In January 1992, IDBI accessed domestic retail debt market for

the first time, with innovative Deep Discount Bonds, and registered path-breaking success. The

following year, it set up the IDBI Capital Market Services Ltd., as its wholly-owned subsidiary,

to offer a broad range of financial services, including Bond Trading, Equity Broking, Client

Asset Management and Depository Services. 

Establishment:-

In September 1994, in response to RBI's policy of opening up domestic banking sector to private

participation, IDBI set up IDBI Bank Ltd., in association with SIDBI. In July 1995, public issue

of the bank was taken out, after which the Government's shareholding came down (though it still

retains majority of the shareholding in the bank). In September 2003, IDBI took over Tata Home

Finance Ltd, renamed ‘IDBI Home finance Limited’, thus diversifying its business domain and

entering the arena of retail finance sector. 

The year 2005 witnessed the merger of IDBI Bank with the Industrial Development Bank of

India Ltd. The new entity continued to its development finance role, while providing an array of

wholesale and retail banking products (and does so till date). The following year, IDBI Bank

acquired United Western Bank (which, at that time, had 230 branches spread over 47 districts, in

9 states). In the financial year of 2008, IDBI Bank had a net income of Rs 9415.9 crores and total

assets of Rs 120,601 crores.

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Objectives of IDBI:-

The IDBI was set up to achieve the following objectives:

(i) To coordinate, supplement and integrate the activities of other existing financial

institution including commercial banks.

(ii) To provide term-finance to industry.

(iii) To provide direct financial assistance to industrial concerns to bridge the gap between

supply and demand of medium and long term finance.

(iv) To coordinate the activities of other financial institutions and to act as a reservoir on

which the other financial institution can draw.

Functions of IDBI:-

1. Direct Assistance:

Project loans

Underwriting

Direct subscription to securities

Soft loans

Technical refund loans and equipment finance loan

2. Indirect Assistance:

Refinance term loan of 3 to 10 years given by scheduled banks Co-op. Banks and IFCI

and SFCs

Refinance by port credit

Subscribes stocks, shares, Debentures of IFCI, SFCs

3. Special Assistance:

For industrial concerns who do not get loans in normal course.

4. Foreign Currency requirements:

Assistance to Backward Areas to Small Scale units on softer term

Refinance facility by IDBI

Loans SFCs, IFCI, Participates in refinancing

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Small Industries Development Bank of India 

SIDBI

Introduction:-

The Small Industries Development Bank of India is a state-run bank aimed to aid the growth

and development of micro, small and medium scale industries in India. Set up in 1990 through an

act of parliament, it was incorporated initially as a wholly owned subsidiary of Industrial

Development Bank of India. Current shareholding is widely spread among various state owned

banks, insurance companies, etc. Beginning as a refinancing agency to banks and state level

financing bodies for their credit to small industries, it has diversified in to many activities,

including direct credit to the SME through more than 100 branches in all major clusters of SME

in India. Besides, it has been playing the development role in several ways such as support to

micro-finance institutions for capacity building and on lending. Recently it has opened 7

branches christened as SFMC branches, aimed especially at dispensing loans up to Rs. 5.00 lakh.

SIDBI has also floated several other entities for related activities. Credit Guarantee Fund Trust

for Micro and Small Enterprises ([1]) provides guarantees to banks for collateral free loans

extended to SME.SIDBI Venture Capital Ltd. ([2]) is Venture Capital Company focused at SME.

SME Rating Agency of India Ltd. (SMERA - [3]) provides composite ratings to SME.

Establishment:-

SIDBI was established on April 2, 1990, under an Act (SIDBI Act, 1989) passed by the Indian

Parliament. The Charter establishing it, The Small Industries Development Bank of India Act,

1989 envisaged SIDBI to be "the principal financial institution for the promotion, financing and

development of industry in the small scale sector and to co-ordinate the functions of the

institutions engaged in the promotion and financing or developing industry in the small scale

sector and for matters connected therewith or incidental thereto.

Objectives of SIDBI:-

(1). Mandatory Objectives

Four basic objectives are set out in the SIDBI Charter. They are:

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Financing

Promotion

Development

Co-ordination

The Charter has provided SIDBI considerable flexibility in adopting appropriate operational

strategies to meet these objectives. The activities of SIDBI, as they have evolved over the period

of time, now meet almost all the requirements of small scale industries which fall into a wide

spectrum constituting modern and technologically superior units at one end and traditional units

at the other.

(2). Development Outlook

The major issues confronting SSIs are identified to be:

Technology obsolescence

Managerial inadequacies

Delayed Payments

Poor Quality

Incidence of Sickness

Lack of Appropriate Infrastructure and

Lack of Marketing Network

There can be many more similar issues hindering the orderly growth of SSIs.

Over the years, SIDBI has put in place financing schemes either through its direct financing

mechanism or through indirect assistance mechanism and special focus programmes under its

P&D initiatives. In its approach, SIDBI has struck a good balance between financing and

providing other support service.

Functions of SIDBI:-

(1) Direct Assistance Schemes:-

SIDBI directly assists SSIs under Project Finance Scheme, Equipment Finance Scheme,

Marketing Scheme, Vendor Development Scheme, Infrastructural Development Scheme, ISO-

9000, Technology Development & Modernization Fund, Venture Capital Scheme, assistance for

leasing to NBFCs, SFCs, SIDCs and resource support to institutions involved in the development

and financing of small scale sector.

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These Schemes are mainly targeted at addressing some of the major problems of SSIs in areas

such as high tech project, marketing, infrastructural development, delayed realisation of bills,

obsolescence of technology, quality improvement, export financing and venture capital

assistance.

(2) Indirect Assistance Schemes:-

Under its indirect schemes, SIDBI extends refinance of loans to small scale sector by Primary

Lending Institutions (PLIs) viz. SFCs, SIDCs and Banks. At present, such refinance assistance is

extended to 892 PLIs and these PLIs extend credit through a net work of more than 65,000

branches all over the country. All the Schemes of SIDBI both direct and indirect assistance are in

operation in all the States of the country through 39 regional/branch offices of SIDBI.

(3) Promotional and Development Activities:-

SIDBI is actively involved in promoting tiny and small scale industries by means of its

promotional and developmental activities through suitable professional agencies for organizing

Entrepreneurship Development Programmes, Technology Up gradation & Modernization

Programmes, Micro Credit Schemes and assistance under Mahila Vikas Nidhi to bring about

economic empowerment of women specially the rural poor by providing them avenues for

training and employment opportunities.

National Bank for Agriculture and Rural DevelopmentNABARD

Introduction:-

NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for

promotion and development of agriculture, small-scale industries, cottage and village industries,

handicrafts and other rural crafts. It also has the mandate to support all other allied economic

activities in rural areas, promote integrated and sustainable rural development and secure

prosperity of rural areas. In discharging its role as a facilitator for rural prosperity NABARD is

entrusted with

1. Providing refinance to lending institutions in rural areas

2. Bringing about or promoting institutional development and Evaluating, monitoring and inspecting

the client banks

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Establishment:-

The Committee to Review Arrangements for Institutional Credit for Agriculture and Rural

Development (CRAFICARD) set up by the RBI under the Chairmanship of Shri B Sivaraman in

its report submitted to Governor, Reserve Bank of India on November 28, 1979 recommended

the establishment of NABARD. The Parliament through the Act 61 of 81 approved its setting up.

The Committee after reviewing the arrangements came to the conclusion that a new arrangement

would be necessary at the national level for achieving the desired focuses and thrust towards

integration of credit activities in the context of the strategy for Integrated Rural Development.

Against the backdrop of the massive credit needs of rural development and the need to uplift the

weaker sections in the rural areas within a given time horizon the arrangement called for a

separate institutional set-up. Similarly, The Reserve Bank had onerous responsibilities to

discharge in respect of its many basic functions of central banking in monetary and credit

regulations and was not therefore in a position to devote undivided attention to the operational

details of the emerging complex credit problems. This paved the way for the establishment of

NABARD. CRAFICARD also found it prudent to integrate short term, medium term and long-

term credit structure for the agriculture sector by establishing a new bank. NABARD is the result

of this recommendation. It was set up with an initial capital of Rs 100 crore, which was enhanced

to Rs 2,000 crore, fully subscribed by the Government of India and the RBI.

Objectives of NABARD:-

NABARD was established in terms of the Preamble to the Act, "for providing credit for the

promotion of agriculture, small scale industries, cottage and village industries, handicrafts and

other rural crafts and other allied economic activities in rural areas with a view to promoting

IRDP and securing prosperity of rural areas and for matters connected therewith in incidental

thereto". The main objectives of the NABARD as stated in the statement of objectives while

placing the bill before the Lok Sabha were categorized as under:

1. The National Bank will be an apex organization in respect of all matters relating to policy,

planning operational aspects in the field of credit for promotion of Agriculture, Small Scale

Industries, Cottage and Village Industries, Handicrafts and other rural crafts and other allied

economic activities in rural areas.

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2. The Bank will serve as a refinancing institution for institutional credit such as long-term,

short-term for the promotion of activities in the rural areas.

3. The Bank will also provide direct lending to any institution as may approved be by the Central

Government.

4. The Bank will have organic links with the Reserve Bank and maintain a close link with in.

Functions of NABARD:-

NABARD is an apex institution accredited with all matters concerning policy, planning and

operations in the field of credit for agriculture and other economic activities in rural areas.

It is an apex refinancing agency for the institutions providing investment and production

credit for promoting the various developmental activities in rural areas

It takes measures towards institution building for improving absorptive capacity of the credit

delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of

credit institutions, training of personnel, etc.

It co-ordinates the rural financing activities of all the institutions engaged I developmental

work at the field level and maintains liaison with Government of India, State Governments,

Reserve Bank of India and other national level institutions concerned with policy

formulation.

It prepares, on annual basis, rural credit plans for all districts in the country; these plans form

the base for annual credit plans of all rural financial institutions

It undertakes monitoring and evaluation of projects refinanced by it.

It promotes research in the fields of rural banking, agriculture and rural development

State Financial Corporations

Introduction:-

State Financial Corporation’s (SFCs), the state-level institutions have played an important role in

the development of small and medium enterprises in their respective states with the main

objectives of financing and promoting these enterprises for achieving balanced regional growth,

catalyze investment, generate employment and widen the ownership base of industry. With the

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liberalization drive getting accelerated, SFC’s future business is likely to face tough competition

from commercial banks, SIDCs/SIICs, etc. Small scale sector too is expected to face stiff

challenge in the wake of WTO’s commitments. SFCs thus have to improve their performance

with particular emphasis on NPA containment and attaining adequate capital adequacy levels.

Establishment:-

The State Financial Corporation Act was passed by the government of India in 1951 with a view

to provide financial assistance to small and medium scale industries which were beyond the

scope of IFCI. According to this Act, a state government is empowered to establish a financial

corporation to operate within the state.

Objectives of SFCs:-

SFCs were established to provide financial assistance to medium and small-scale industrial

concerns which are outside the scope of the IFCI. The scope of the SFCs activities includes

public limited companies and also private limited companies, partnership firms and proprietary

concerns.

Functions of SFCs:-

The main function of the SFCs is to provide loans to small and medium scale industries engaged

in the manufacture, preservation or processing of goods, mining hotel industry generation or

distribution of power, transportation, fishing, assembling, repairing or package articles with the

aid of power, etc. State Financial Corporation is authorized to grant financial assistance in the

following forms:

1) Financial Assistance:

The financial assistance of SFCs takes the form of granting of loans or advances or subscribing

to the debentures of industrial concerns repayable within 20 days.

2) Underwriting:-

An important function of SFCs is underwriting the issues of shares, bonds and debentures of

industrial concerns repayable in 7 years.

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Insurance Companies in India

In India, Insurance is a national matter, in which life and general insurance is yet a booming

sector with huge possibilities for different global companies, as life insurance premiums account

to 2.5% and general insurance premiums account to 0.65% of India's GDP. The Indian Insurance

sector has gone through several phases and changes, especially after 1999, when the Govt. of

India opened up the insurance sector for private companies to solicit insurance, allowing FDI up

to 26%. Since then, the Insurance sector in India is considered as a flourishing market amongst

global insurance companies.

However, the largest life insurance company in India is still owned by the government. The

history of Insurance in India dates back to 1818, when Oriental Life Insurance Company was

established by Europeans in Kolkata to cater to their requirements. Nevertheless, there was

discrimination among the life of foreigners and Indians, as higher premiums were charged from

the latter. In 1870, Indians took a sigh of relief when Bombay Mutual Life Assurance Society,

the first Indian insurance company covered Indian lives at normal rates. Onset of the 20th

century brought a drastic change in the Insurance sector.

In 1912, the Govt. of India passed two acts - the Life Insurance Companies Act, and the

Provident Fund Act - to regulate the insurance business. National Insurance Company Ltd,

founded in 1906, is the oldest existing insurance company in India. Earlier, the Insurance sector

had only two state insurers - Life Insurers i.e. Life Insurance Corporation of India (LIC), and

General Insurers i.e. General Insurance Corporation of India (GIC). In December 2000, these

subsidiaries were de-linked from parent company and were declared independent insurance

companies: Oriental Insurance Company Limited, New India Assurance Company Limited,

National Insurance Company Limited and United India Insurance Company Limited.

(1)Life Insurance Companies-:

Public Sector:-

1. Life Insurance Corporation of India

Private Sector:-

1. Allianz Bajaj Life Insurance Company Limited

2. Birla Sun-Life Insurance Company Limited

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3. HDFC Standard Life Insurance Co. Limited

4. ICICI Prudential Life Insurance Co. Limited

5. ING Vysya Life Insurance Company Limited

6. Max New York Life Insurance Co. Limited

7. MetLife Insurance Company Limited

8. Om Kotak Mahindra Life Insurance Co. Ltd.

9. SBI Life Insurance Company Limited

10. TATA AIG Life Insurance Company Limited

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) is a Government of India enterprise, and is said to be

the largest life insurance company and also the largest investor of the country. LIC had been

established on the 1st of September, 1956, after the Life Insurance Corporation Act had been

passed by the Parliament of India in the same year. The corporation is aimed at providing life

insurance services primarily to the rural masses and the socially & economically backward

sections of the Indian society. It also aims at promoting the people for saving their money, and

offers attractive savings features along with various insurance policies.

The headquarters of Life Insurance Corporation of India are located in Mumbai, and as of April

2009 it has 8 zonal offices, 101 divisional offices and 2048 branches located in different towns

and cities of India. Along with a workforce of 112,184 employees serving the institution, more

than 1 Million agents of the Life Insurance Corporation of India are helping the people

nationwide in adopting the various life insurance policies being offered by the corporation. Apart

from India, LIC is also present in 12 other countries currently, fulfilling the life insurance needs

of its overseas customers most of which are Non Resident Indians (NRIs).

During the financial year 2006-07, the total number of Life Insurance Corporation of India

policy holders were more than 200 Million, which was equal to the population of fourth largest

populous country in the world at that time.

Plans:-

Insurance Plans

Pension Plans

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Unit Plans

Special Plans

Group Schemes

Withdrawn Plans

Policies:-

1. LIC’s Jeevan Saathi Plus:-

LIC’s Jeevan Saathi Plus is a unit linked plan wherein a couple can take the insurance cover on

their lives under a single policy. The proposer under the plan shall be called Principal Life

Assured (P.L.A.) and the other life (wife/husband) shall be called Spouse Life Assured (S.L.A.).

The premiums can be paid either in lump sum (single premium) or regularly throughout policy

term. The P.L.A. can choose the level of cover (Sum Assured) for both lives within the limits,

which will depend on whether the policy is a Single premium or Regular premium contract, age

and the amount of premium agreed to pay. For regular premium policies, in case of death of the

P.L.A. during the term of the policy, the plan also provides for waiver of all future premiums

including outstanding premiums, if any, provided life cover is in force. P.L.A. will also have an

option to make additional investments under the policy through Top-up premiums.

1. Payment of Premiums: P.L.A. may pay premiums regularly at yearly, half-yearly, quarterly

or monthly (ECS) intervals over the term of the policy. The minimum annualized premium

(other than monthly through ECS) will be Rs.10, 000/- increasing thereafter in multiples of Rs.1,

000/-. The minimum monthly (ECS) premium will be Rs. 1000/- increasing thereafter in

multiples of Rs. 250/-. Alternatively, a Single premium can be paid subject to a minimum of Rs.

40,000/- .

2. Eligibility Conditions and Other Restrictions:

(a) Minimum Age at entry - 18 years (completed)

(b) Maximum Age at entry - 55 years (age nearer birthday)

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(c) Maximum Maturity Age - 70 years (age nearer birthday)

(d) Policy Term - 10 to 20 years

(e) Minimum Sum Assured – Regular Premium: 5 times the annualized premium for each of

P.L.A and S.L.A.

2. LIC’s Jeevan Tarang:-

This is a with-profits whole of life plan which provides for annual survival benefit at a rate of 5½

% of the Sum Assured after the chosen Accumulation Period. The vested bonuses in a lump sum

are payable on survival to the end of the Accumulation Period or on earlier death. Further, the

Sum Assured, along with Loyalty Additions, if any, is payable on survival to age 100 years or on

earlier death.

Accumulation Period:

The plan offers three Accumulation periods – 10, 15 and 20 years. A proposer may choose any

of them.

Payment of Premium:

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals or through

salary deductions over the Accumulation Period. Alternatively, a Single Premium can be paid on

commencement of a policy.

Sample Premium Rates:

The tables below provide tabular premiums for various age-term combinations for Rs. 1000/-

Sum Assured.

Bajaj Allianz Life Insurance Co. Ltd

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz SE, one of the world's

largest insurance companies, and Bajaj Finserv. Allianz SE is a leading insurance corporation

globally and one of the largest asset managers in the world, that manage assets worth over a

Trillion. With over 115 years of financial experience, Allianz SE is present in over 70 countries

around the world. Bajaj Allianz is into both life insurance and general insurance. Today, Bajaj

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Allianz is one of India's leading and fastest growing insurance companies. Currently, it has

presence in more than 550 locations with over 60,000 Insurance Consultants.

In June 2008, Bajaj Allianz entered into partnership with Thomas Cook India to provide travel

finance. Bajaj Allianz Life Insurance ensures excellent insurance and investment solutions by

offering customized products, supported by the best technology. A comprehensive list of policies

and products offered by Bajaj Allianz Life Insurance Co. Ltd. is as follows:

Unit Linked Plans

1. Regular Premium

2. Single Premium

Pension Plans

1. Annuity

2. Retirement

Traditional Plans

1. Endowment

2. Money Back

Term Plans

Women Insurance Plans

Health Plans

Children Plans

Group Plans

Employer Employee

Micro Insurance

Other Plans

Policies:-

1. Bajaj Allianz Term Care:-

Term Assurance plan with return of premium. An economic way of providing life cover, this

plan also ensures the return of all premiums at the time of maturity. 

A term insurance plan with a difference. 

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Dual benefit - Life cover + Return of premiums paid on survival at the end of the term.

Single premium payment option available. 

The only pure term plan in the market to provide Hospital Cash Benefit. 

2. Bajaj Allianz Life Time Care:-

A whole life plan, which provides survival, benefits at the age of 80, thereby making sure

you are financially secure at the time when you need it the most.Br> Additional Benefits:

Accidental Death Cover and Disability Cover. 

Critical Illness Cover and Hospital Cash Cover. 

Waiver of Premium Benefit.

Birla Sun Life Insurance

Birla Sun Life Insurance Co. Ltd. is a joint venture between Aditya Birla Group, an Indian

multinational corporation, and Sun Life Financial Inc, a leading global insurance company. Birla

Sun Life Insurance is distinguished as the first company in the sector of financial solutions to

begin Business Continuity Plan. This insurance company has pioneered the unique Unit Linked

Life Insurance Solutions in India. Within 4 years of its launch, BSLI became one of the leading

players in the industry of Private Life Insurance Scheme.

Birla Sun Life Insurance believes in passion, integrity, speed, commitment and seamlessness.

The mission of the company is to help people with risk management. It also helps in managing

the financial situation of firms as well as individuals. Here is given a comprehensive list of

policies and products offered by Birla Sun Life Insurance Co. Ltd.:-

Protection Plans

Saving Plans

Health Solution Plans

Retirement Plans

Children Plans

Rural Plans

Group Plans

NRI Plans

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Policies:-

1. BSLI Prime Life Premier:-

The BSLI Prime Life Premier Plan offers you the right balance between protection and savings.

Earn rich benefits from the investment fund option that you choose, along with adequate

protection for your family. The plan provides guaranteed additions in the form of additional units

which would be added to your Fund Value, at the end of 10 years and every 5 years thereafter.

The additional units would be equivalent to 2% of your average Fund Value, at the preceding

sixty monthly policy dates.

Plan Summary:-

Entry Age- 30 days to 65 years

Minimum Premium- Rs. 50,000

Maturity Age- 70 years

Premium Paying Frequency- Single premium

Minimum Duration- 5 years

Sum Assured- "5" times of the Life Insurance premium.

Minimum Sum Assured will be Rs.2, 50,000

2. BSLI Saral Jeevan Plan:-

The plan offers a simple and quick investment option, with a life cover and provides with scope

for growth of your investments too. It offers an easy and simple way to purchase insurance. Just

follow 3 step processes.

Complete our ‘Saral’ application form detailing the complete policy with plan illustrations

Agree to our 3 health-related statements

Make your payment by cash or a local cheque, and submit the required documents – such as

identity, residence, income and age proofs

Plan Summary

Entry Age- 18 years to 55 years

Policy Term- 10 years, 15 years and 20 years subject to maximum

maturity age of 65 years

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Sum Assured- You may choose as many Covers. Each Cover

represents Rs. 10000 Sum Assured Minimum no. of

Covers is 6, 9 and 12 for 10, 15 and 20 years policy

term respectively. The maximum number of Cover

is 100

Premium Paying Term- Regular

Premium Paying Frequency- Annually, half yearly, quarterly or monthly, as per

your convenience

HDFC Standard Life Insurance

Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a joint venture

between Housing Development Finance Corporation Limited (HDFC Limited) - India's leading

housing finance institution, and a Group Company of the Standard Life Plc, UK. The Company

is one of leading private insurance companies, offering a range of individual and group insurance

solutions, in India. Being a joint venture of top financial services groups, HDFC Standard Life

has adequate financial expertise to manage long-term investments safely and resourcefully.

HDFC Standard Life Insurance offers a range of individual and group solutions, which can be

easily personalized to specific needs. Its group solutions have been planned to offer complete

flexibility, together with a low charging structure. As of 31 December, 2008, the Company's new

business premium income stood at Rs. 1,839.70 Crores; it has covered over 812,811 lives so far.

Given below is a comprehensive list of policies and products on offer by HDFC Standard Life

Insurance:

Protection Plans

Children's Plans

Retirement Plans

Savings & Investment Plans

Health Plans

Group Plans

Policies:-

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1. HDFC Unit Linked Young Star II:-

With HDFC Unit Linked Young Star II, start building savings today and ensure a bright future

for child. This plan provides valuable protection to your child in case you are not around. This

Unit Linked Plan also gives you with an outstanding investment opportunity to maximize your

savings by providing you a choice of thoroughly researched and selected investments.

Advantages

You can customize the ideal plan for your child by choosing the premium you wish to invest

along with the Sum Assured, depending on the level of protection required

The Triple Benefit payment preference helps you secure your child’s immediate and future

needs. In case of your unfortunate demise or critical illness, we will pay the Sum Assured to

your child (Beneficiary). Your family need not pay any further premiums. We will pay 50%

of all the future premiums at the original level towards your policy and 50% of the premiums

will be paid to the Beneficiary as and when due, on an annual basis. Any Death Benefit or

Critical Illness cover terminates immediately

In the long term, the key to building great maturity values is a low Fund Management Charge

(FMC). We have a low FMC of only 1.25% per annum (of the fund’s value)

You can choose to pay your premium as either Annually, Half-Yearly or Monthly depending

on your convenience. You also have a range of convenient auto premium payment options

You can change your investment fund choices in two ways:

Switching: You can move your accumulated funds from one fund to another anytime

Premium Redirection: You can pay your future premiums into a different selection of funds,

as per your need

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961.

2. HDFC Critical Care Plan:-

Critical Illness can strike anyone. Today with advancement in medical science it is possible to

survive a critical illness. Expenses on survival with a critical illness can be very high. HDFC

Critical care plan provides for a lump sum payment on survival post diagnosis of a critical

illness, so that in the event a critical illness strikes, you don’t have to dig into those precious

savings of yours.

Advantages

Provides valuable protection on survival post diagnosis of a critical illnesses

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Covers as many as 30 critical illnesses

Lump sum benefit payment paid irrespective of medical expenses

The policy continues even after the benefit payment paid on selected illness

Choice of the level of health cover and premium payment

Convenient and hassle free claims

ICICI Prudential Life Insurance

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

India's foremost financial services companies, and Prudential plc, which is a leading international

financial services group headquartered in the United Kingdom. ICICI Prudential began the

operations in December 2000. Today, this company has over 2100 branches, which include

1,116 micro-offices, over 290,000 advisors and 18 banc assurance partners.

ICICI Prudential Life Insurance Company is the first life insurer in India that received a National

Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential has been

voted as India's Most Trusted Private Life Insurer for three consecutive years. ICICI Prudential

Life Insurance Company has various insurance plans that have been designed for different

individuals, as every individual has different insurance needs. Given below is a list of plans

provided by ICICI Prudential Life Insurance Company:

Life Insurance Plans

Education Insurance Plans

Wealth Creation Plans

Premium Guarantee Plans

Protection Plans

Retirement Solutions

Health Coverage Plans

ICICI Pru Group Solutions Advantage   

Rural Plans

Micro Insurance Plans

Policies:-

1. ICICI Life Stage Assure:-

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Well begun, they say, is half done. This adage holds true as much to life as to your long-term

financial planning. However, times have changed now; markets have become volatile. Everyone

knows for sure that the growth story of India is intact for a longer term. Equity markets haven’t

lost their charm as a long term investment. Yet, everyone is waiting for a right time to invest.

Since timing the market correctly is difficult for an average investor and capital preservation

during such volatile times is important. Keeping this in mind, we bring to you; ICICI Pru Life

Stage Assure a ULIP that offers you a clear advantage by giving you guaranteed returns

(maturity additions) on your first year premium - which means that your investments get an

unmatched start to long-term wealth creation. ICICI Pru Life Stage Assure also comes with an

option of lifecycle-based portfolio strategy that re-distributes your money across various asset

classes (Automatic Asset Allocation) based on your life stage and risk tolerance. Thus, with this

policy you can look forward to a great start to realize all your aspiration

2. ICICI Pru Pinnacle:-

ICICI Pru Pinnacle is a unit linked insurance policy that offers the advantage of varying

exposure to equities along with downside protection, so that your investments are protected in

financially volatile times. It also offers a limited premium payment term while allowing you to

enjoy insurance protection for a longer period.

With ICICI Pru Pinnacle, they guarantee the highest Net Asset Value (NAV) recorded on a daily

basis, in the first 7 years of the fund, subject to a minimum of Rs.10. The guarantee will be

applicable only at maturity. The period of 7 years starts from the date of launch of Pinnacle Fund

and will end on the completion of 7 years (from 24/10/09 to 24/10/16). At maturity, the higher of

Fund Value (Units X NAV) and Guaranteed Value (Units X Guaranteed NAV) as on the

maturity date shall be payable.

2. General Insurance Companies:-

Public Sector

1. National Insurance Company Limited

2. New India Assurance Company Limited

3. Oriental Insurance Company Limited

4. United India Insurance Company Limited

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Private Sector

1. Bajaj Allianz General Insurance Co. Limited

2. ICICI Lombard General Insurance Co. Ltd.

3. IFFCO-Tokio General Insurance Co. Ltd.

4. Reliance General Insurance Co. Limited

5. Royal Sundaram Alliance Insurance Co. Ltd.

6. TATA AIG General Insurance Co. Limited

7. Cholamandalam General Insurance Co. Ltd.

8. Export Credit Guarantee Corporation

Reinsurance companies

General Insurance Corporation of India

National Insurance Company Ltd

After the passing of the General Insurance Business Nationalization Act in 1972, National Insurance Company Limited, (which was incorporated in 1906 and registered in Kolkata) became one of the four subsidiaries of General Insurance Corporation of India (GIC). Wholly owned and controlled by the Government of India, it continued its operation as a GIC subsidiary, until the August of 2002. Subsequent to the notification of the General Insurance Business (Nationalization) Amendment Act, on August 7, 2002, National Insurance Company Limited (NIC) de-linked from its holding company GIC and started operating, as a Government of India undertaking. NIC has its head quarters in Kolkata. Being one of the leading public sector insurance companies of India, it effectively carries out the general insurance business in India. With a workforce of more than 16,000 personnel, NIC's has about 1000 offices, covering almost the entire country. Right from the metropolitan cities to the rural areas and remote townships, NIC has enveloped the length and breadth of India. While the domestic operations are carried out by the offices in India, the foreign operations are controlled from its branch offices in Nepal.Products & Services Personal Line Rural Line Industrial Line Commercial Line

Policies:-1. Niwas Yojana Policy:-

Feature

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1. The Policy comprises of two sections :-

Section I is intended to cover building and owner’s permanent fixture and fittings.

Section II is Death/Permanent Total Disablement of Loanee.

2. The Policy will cover the risk of financiers and the loanee/owner of the premises Mentioned

in the schedule of the policy. 

3. Premises under construction will also be covered.

4. Policy will cover building of Class A construction only.

5. The Financial Institution/employer can take group policy. Group discount will be allowed

only for PA Section (Sec II).

Risks Covered

Sec. I:   

a) Building under occupation/construction

b)  Owners permanent fixtures and fittings

c) Boundary walls and fences

d) Sanitary fittings

e) Other property (specified)

Sec II:

a) Personal Accident to the Insured.

2. Motor Policy - Private Car:-

Feature 

Motor Insurance Contracts are subject to the basic principles applicable to property and liability

insurance in general. The owner of the vehicle must bear a legal relationship to the vehicle

whereby he or she stands to benefit by the safety of the vehicle, right, interest or freedom from

liability and stands to lose by any loss, damage, injury or creation of liability

Scope of Cover

There are two types of policies available.....

 Policy A- to cover Act liability.  

 Policy B- to cover both own damage losses and Act liability.   

 Section I of Standard form of Private Car Policy (B) or Motor Cycle/Scooter Policy covers

against loss or damage to the insured vehicle and/or its accessories whilst thereon.......

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a)       By fire, explosion (both external and internal), self-ignition or lightening;

b)       By burglary, housebreaking or theft;

c)       By riot and strike;

d)       By earthquake (fire and shock damage);

e)       By flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm;

f)       By accidental external means;

g)       By malicious act;

h)       By terrorist activity;

i)        Whilst in transit by road, rail, inland waterway, lift, elevator or air.

Section II covers Liability to third parties which means this section provides indemnity to the

Insured in the event of accident caused by or arising out of the use of the motor vehicle against

all sums, including claimants costs and expenses, which the insured shall become legally liable

to pay in respect of --

(i) Death of or bodily injury to any person, including occupants carried in the motor vehicle,

provided such occupants are not carried for hire or reward , but not where such death or

injury arises out of and in the course of the employment of such person by the Insured.

Limits of Liability under this section as per M V Act, 1988 is unlimited;

(ii) Damage to property other than property belonging to the insured or held in trust or in the

custody or control of the insured. Limits of Liability is Rs.6000/- in respect of any one

claim or series of claims arising out of one event but Tariff however provides for

increased limits up to unlimited liability for TP ( Third Party ) property damage, at an

additional premium.

Tata AIG General Insurance

Tata AIG General Insurance Company Limited, more popularly known as Tata AIG General, was formed as a joint venture company between Tata Group and American International Group, Inc. (AIG). The former holds 74 per cent stake in the insurance venture, while the latter is in the control of the rest 26 percent. The insurance company was established after the liberalization of the Indian insurance sector (2000) and commenced its operations in the following year i.e. 2001, on January 22.At the start, Tata AIG General Insurance had only six branches for running its operations. However, the professional and trustworthy conduct of the insurance company has led it to the

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point where it has an extensive branch network, straddling almost the entire country. It is also credited for having a number of firsts within its profile. Tata AIG General was the first to introduce a toll free helpline number and a mobile claims service. The company is also regarded as the pioneer in claims registration and policy renewals via SMS.

Policies:-1. Student Guard:-

Studying abroad is an opportunity twice over. To learn in the college of your choice, and to use

free time exploring new lands, new cultures. But remember, with this opportunity comes the risk

of an accident or loss of sponsorship. Tata AIG's new Student Guard Plus plan is designed for

people traveling abroad for studies

Features 

Study Interruption: We'll reimburse tuition fee paid in advance for the current semester if

your studies are interrupted due to medical or compassionate reasons.

Sponsor Protection: In case of death or permanent disablement of your sponsor, we'll

reimburse your remaining school fees up to a specified maximum limit.

Accident Medical Expenses: On accidental injury, we'll reimburse your actual

hospitalization cost or outpatient treatment incurred overseas, within 90 days from the date of

the accident, up to a specified maximum limit.

Compassionate Visit (2-Way): If you are hospitalized for more than seven consecutive

days, we'll cover the cost of the round trip economy class air ticket and accommodation

expenses so an immediate family member can be with you.

Visit by student: In case of death or hospitalization of parent (s) / spouse / child (ren) for

more than seven consecutive days, we'll cover the cost of the round trip economy class air

ticket.

Personal Accident: Student Guard gives you worldwide coverage against Accidental Death

and Dismemberment while you're abroad anywhere in the world.

Additional Features

24 hrs. Worldwide Emergency Assistance Service

Emergency Medical Evacuation

Repatriation of remains

Felonious assault

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Lost luggage

Personal Liability abroad

Accident and Sickness Medical Reimbursement

2. Travel Guard:-

Injury or illness on a trip like this can be unpleasant and expensive. Tata AIG's Travel Guard is a

"Global Travel Protection" policy that any resident Indian between the ages of 6 months and 70

years can buy (for travel abroad on business or leisure). You need no medical certification,

whatever your age, though you do need a declaration of recent medical history. Any pre-existing

ailments or medical conditions are not covered under this policy.

Features:-

Coverage of Medical Expenses: Travel Guard takes care of your medical expenses due to

accident and sickness while traveling so that you can concentrate on better things like

enjoying the holiday

Checked Baggage Loss: Compensation for the loss of checked in baggage

Baggage delay: Compensation for reasonable expenses incurred for purchase of emergency

personal effects due to delay in arrival of checked in baggage, whilst overseas

Loss of Passport: Compensation for expenses incurred in obtaining a duplicate or new

passport

Personal Liability: Compensation for damages to be paid to a third party, resulting from

death, bodily injury or damage to property; caused involuntarily by the insured.

Hijacking: In an unfortunate event of your common carrier in which you are travelling;

In-hospital Indemnity: Travel Guard pays a Daily benefit for each day you are an inpatient

in a hospital due to injury or sickness

Trip Delay: Reimbursement of additional expenses occurred due to trip delay (only if the

trip has been delayed for more than 12 hours).

Automatic-extension of the policy: Travel Guard allows you to extend your policy up to a

period of 7 days from the policy expiry date.

Personal Accident: Travel Guard gives you worldwide coverage against Accidental Death

and Dismemberment while you're abroad anywhere in the world.

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Sickness Dental Relief: The policy pays for immediate Dental Treatment occurring due to

sudden acute pain during the course of an overseas Insured Journey. Dental benefits will be

provided for Medically Necessary filling of the tooth or surgical treatment, services, or

supplies.

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