Beruflich Dokumente
Kultur Dokumente
ON
A COMPARITIVE STUDY OF INVEST SHIELD LIFE OF ICICI
PRUDENTIAL WITH OTHER INSURANCE COMPANIES
BANGALORE UNIVERSITY
BY
Mr.IRANNA SHIVALINGAPPA.
Reg. No.: 05ACCM6023.
Under the guidance of
BANGALORE
CONTENTS
Chapter
No.
1.
Title
Page No.
Introduction.
a. Introduction to Finance.
b. Investment alternatives
Insurance Regulatory and Development
Act (IRDA).
c. Composition Of Insurance Industry
d. History of Insurance
e. Insurance in India
historical
prospective
f. Life Insurance Market
g. Kinds of Insurances
3.
4.
Research Design.
a. Introduction
b. Statement of the problem
c. Objective of the study
d. Scope of the study
e. Operational definitions of the concept
f. Methodology of research
Type of Research
Sample size
Tools of data collection
Method of analysis
g. Limitations of the study
h. Chapter scheme
Company Profile.
Presentation and Analysis of Data &
Interpretation.
5.
Questionnaire.
List of Tables
Table No.
Table 6.1
Table 6.2
Page
No.
TITLE
Table 6.3
Table 6.4
Table 6.5
Table 6.6
Table 6.7
Table 6.8
Table 6.9
Table 6.10
Table 6.11
Table 6.12
Table 6.13
Table 6.14
Table 6.15
Table 6.16
Table 6.17
Table 6.18
Table 6.19
Table 6.20
Table 6.21
List of Graphs
Graph No.
Graph 6.1
TITLE
Graph 6.2
Graph 6.3
Graph 6.4
Graph 6.5
Graph 6.6
Graph 6.7
Page
No.
CHAPTER: 1
INTRODUCTION.
In the wonderful world of finance there are wide Varity of choices available one
needs to understand the different investment alternatives such as stocks, bonds,
government securities, bank fixed deposits, private company deposits & insurance. The
goal is to help reduce risk and enhance returns.
Life Insurance is a contract for payment of a sum of money to the person assured
(or failing him/her, to the person entitled to receive the same) on the happening of the
event insured against. Usually the contract provides for the payment of an amount on the
date of maturity or at specified dates at periodic intervals or at unfortunate death, if it
occurs earlier.
At ICICI PUDENTIAL, there is constantly strive to understand
investors need and provide solutions that help them to plan there
future better. In keeping with that endeavor, ICICI present INVEST
SHIELD LIFE, regular premium unit linked plan with capital
guarantee.
ICICI gives more opportunity to the investors in Age factor as it starts from the
birth of the child. The Surrender value in ICICI has a greater value as it starts after 1 st
year, which is 10%. In MET LIFE the Extended life coverage facility is most beneficial as
it covers till the age of 99. The flexibility to Increase / Decrease the Investors contribution
is outstanding in MET LIFE. The Fund management charges in BIRLA SUNLIFE are
more affordable by an investor.
Insurance has a unique feature, i.e., risk cover for life. Even through return is
in insurance, it is important instrument in its portfolio to fulfill the monetary loss of
the investors towards their dependants. Long-term policies are better than medium
term and short-term policies for better future arrangements. By entry of private
insurance players in the market, there are new products, which also take care of your
investments.
Company should concentrate on the 25-30 year age group, because this is the
time when people show more interest in investment.
Introduction to finance
Finance is one of the major elements, which activates the overall
growth of economy. Finance is the lifeblood of economic activities.
The study of business finance is concerned with the provision, flow
and use of finance within a business organization and with demand
for, and supply of, funds for business within the economy as a whole.
Funds for a business are obtained from a variety of sources and it
may be classified in two major categories namely internal and
external. Internal funds are obtained by retention of a portion of the
companys own revenue stream. External financing, on the other
hand, representation a transfer of capital funds to the business form
other business units or individuals or institutions in the form of
loans or additional ownership capital.
FINANCIAL MANAGEMENT
Financial management emerged as a distinct field of study at turn of the country. Its
evolution may be divided into three broad phases: the traditional phase, the transitional
phase and the modern phase. Since the beginning of the modern phase many significant
and seminal developments have occurred in the fields of capital budgeting, capital
structure theory, efficient market theory, option pricing theory, agency theory, arbitrage
pricing theory, valuation models, dividend policy, working capital management, and
behavioral finance.
Investment decision
Financing decision
Dividend decision
Investment alternatives
As an investor you have a wide array of investment avenues
available to you. Sacrificing some rigor, bewildering range of
investment alternatives is available. They fall into two broad
categories, viz. financial assets and real assets are paper (or
electronic) claims on some issuer such as the government or a
corporate body. The important financial assets are equity shares,
corporate debentures, government securities, and deposit with
banks, mutual fund shares, insurance policies, and derivative
instruments. Real assets are represented by tangible assets like a
residential house, a commercial property, an agriculture farm, fold,
precious stones, and art objects. As the economy advances, the
relative importance of financial assets tends to increase. Of course,
by and large the two forms of investment of financial assets tend to
increase. Of course, by and large the two forms of investments are
complementary and not competitive.
For sensible investing, you should be familiar with the characteristics and features
of various investment alternatives before you. These may be classified as shown below
chart.
Financial
Commercial Banks
Insurance
Companies
Institutions
Mutual Funds
Provident Funds
Non-Banking Financial
Companies
Investment alternatives
Suppliers of
Funds
Private
Placement
Investment alternatives
Individual
Businesses
Governments
Nonmarketing
financial
Demanders of
Funds
Individual
Businesses
Governments
Money
market
instruments
Mutual fund
schemes
Real estate
Financial
Markets
Money Market
Capital Market
Financial derivatives
Equity shares
Life
insurance
Precious
objects
Funds
Securit
Insurance Regulatory and Development Authority (IRDA)
On the recommendation of Malhotra Committee, an Insurance Regulatory
Development Act (IRDA) passed by Indian Parliament in 1993.
MISSION
Its main aim is to activate an insurance regulatory apparatus essential for proper
monitoring and control of the Insurance industry.
To protect the interests of the policyholders, to regulate, promote and ensure
orderly growth of insurance industry and for matters connected therewith or incidental
thereto. Due to this Act several Indian private companies have entered into the insurance
market, and some companies have joined with foreign partners.
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering the
private sector insurance companies. The other decisions taken simultaneously to provide
the supporting systems to the insurance sector and in particular the life insurance
companies were the launch of the IRDAs online service for issue and renewal of licenses
to agents. The approval of institutions for imparting training to agents has also ensured
that the insurance companies would have a trained workforce of insurance agents in place
to sell their products, which are expected to be introduced by early next year. Since being
set up as an independent statutory body the IRDA has put in a framework of globally
compatible regulations. In the private sector 12 life insurance and 6 general insurance
companies have been registered.
Section 14 of IRDA ACT, 1999 lays down the duties, powers and function of IRDA.
Subject to the provision of this act and any other law for the time being in
force, the authority shall have the duty to regulate, promote and ensure orderly of the
insurance business and re insurance business.
The Powers and function of the authority shall includeIssue to the applicant a certificat;ke of registration, renew, modify, withdraw,
suspend or cancel such registration.
Protection of the interests of the policy holders in matters concerning assigning of
policy, nomination by policy holders, insurable interest, solving insurance claim,
surrender value of policy and terms and conditions of contract of insurance.
Specifying requisite qualifications, code of conduct and practical training for inter
mediators or insurance intermediately and agents.
Specifying requisite qualifications, code for surveyors and loss assessors.
Levying fees and other charges for carrying out the purposes of this act.
Promoting efficiency in the conduct of insurance and reinsurance business.
IRDA also try to generate the awareness and regulate the life
insurance sector. For this job government also use the print media
viz. newspapers and magazines etc. to for public interest. Some of
the advertisement cuttings are attached in annexure at end of the
project.
the risks
Actuaries:
An actuary determines premium rates; studies mortality trends, constructs mortality tables
and lays down underwriting standards.
Development Officers:
Development officers in the sector are responsible for the sale of insurance policies in the
allotted territorial jurisdiction. They recruit and train insurance agents.
NON LIFE
ICICI-Lombard Insurance
MetLife Insurance
Oriental Insurance
LIC
History of Insurance:
Insurance has existed for thousands of years. A form of credit insurance was
included in the Code of Hammurabi, a collection of Babylonian laws said to predate the
Law of Moses. To finance their trading expeditions in ancient times, ship owners obtained
loans from investors. If a ship was lost, the owners were not responsible for paying back
the loans. Since many ships returned safely, the interest paid by numerous ship owners
covered the risk to the lenders.
It was likewise in a maritime setting that later one of the world's most famous
insurance providers, Lloyd's of London, was born. By 1688, Edward Lloyd was
running a coffeehouse where London merchants and bankers met informally to do
business. There financiers who offered insurance contracts to seafarers wrote their
names under the specific amount of risk that they would accept in exchange for a
certain payment, or premium. These insurers came to be known as underwriters.
Finally, in 1769, Lloyd's became a formal group of underwriters that in time grew into
the foremost market for marine risks.
specially England, where insurance companies have a more than 500 years of history.
Bombay Life Assurance Company was established in Bombay (now Mumbai) on 1st May
1823. Oriental Life Assurance Company started was in Calcutta by Europeans. The
recorded history of Insurance business in India, however, began in 1914 when the
Government of India started publishing returns of Insurance Companies in India.
The Insurance Amendment Act of 1950 abolished Principal Agencies. However,
there were a large number of insurance companies and the level of competition was high,
there were also allegations of unfair trade practices. The Government of India, therefore,
decided to nationalize the insurance business. An Ordinance issued on 19th January 1956
nationalized the Life Insurance sector and 'LIFE INSURANCE CORPORATION OF
INDIA' (L.I.C.) came into existence in the same year. The LIC absorbed 154 Indian, 16
non-Indian insurers as also 75 provident societies. Since then LIC has been the only
player.
Similarly, before November 1972, a number of Indian and many foreign
companies did general insurance business in India and this business was linked with their
branches abroad. In addition, LIC, some mutual companies and cooperative societies also
offered this product. In fact, on the eve of nationalization, 68 Indian (including LIC) and
45 non-Indian entities carried out insurance business in India. Nationalization saw the
business of all these organizations absorbed by the GENERAL INSURANCE
CORPORATION (GIC) with its four subsidiaries.
Thus Life Insurance Corporation of India in the field of life insurance and General
Insurance Corporation of India in the field of general insurance have enjoyed absolute
monopoly. However, the reforms in financial sector in the early 90s have since touched
Insurance also. The Govt. of India set up a committee with Shri. R.N. Malhotra as the
Chairman to recommend suitable reforms in this sector. As a consequence of the
recommendation of the Malhotra Committee, the Government of India set up an Insurance
Regulatory Authority. On the 2nd December 1999, Indian Parliament has passed,
Insurance Regulatory and Development Act, throwing open the Insurance sector to
Banks and other private parties. Since then, RBI has come out with draft guidelines for
entry to this sector. This is seen as a major step in financial sector reforms, which
introduce, for the first time since nationalization of the insurance business, an element of
competition in this sector. This should bring competitively priced insurance for the
customer and improve the service available to him.
The Indian Life Assurance Companies Act enacted as the first statute to
collect statistical information about both life and non-life insurance businesses.
1938:
245 Indian and Foreign Insurers and the Provident Societies taken over by
the Central Government and Nationalized. LIC formed by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.
The Life Insurance market in India is an underdeveloped market that was only
tapped by the state owned LIC till the entry of private insurers. The penetration of life
insurance products was 19 percent of the total 400 million of the insurable population. The
state owned LIC sold insurance as a tax instrument, not as a product giving protection.
Most customers were under- insured with no flexibility or transparency in the products.
With the entry of the private insurers the rules of the game have changed.
The 12 private insurers in the life insurance market have already grabbed nearly 17
percent of the market in terms of premium income. The new business premiums of the 12
private players have tripled to Rs 2000 crore in 2004- 05 over last year. Meanwhile, state
owned LIC's new premium business has fallen.
Innovative products, smart marketing and aggressive distribution. That's the triple
whammy companies to sign up Indian customers faster than anyone ever expected.
Indians, who have always seen life insurance as a tax saving device, are now suddenly
turning to the private sector and snapping up the new innovative products on offer.
The growing popularity of the private insurers shows in other ways. They are
coining money in new niches that they have introduced. The state owned companies still
dominate segments like endowments and money back policies. But in the annuity or
pension products business, the private insurers have already wrested over 33 percent of
the market. And in the popular unit-linked insurance schemes they have a virtual
monopoly, with over 90 percent of the customers.
The private insurers also seem to be scoring big in other ways- they are persuading
people to take out bigger policies. For instance, the average size of a life insurance policy
before privatization was around Rs 50,000. That has risen to about Rs 80,000. But the
private insurers are ahead in this game and the average size of their policies is around Rs
1.1 lacks to Rs 1.2 lacks- way bigger than the industry average.
Annuity:
An Annuity is a contract that provides an income for a specified
period of time, such as a number of years. And Annuity
Consideration is the payment, or one of the regular periodic
payments; an annuitant makes for an annuity.
The business of Insurance essentially means defraying risks attached
to any activity over time (including life) and sharing the risks
between various entities, both persons and organizations.
Life Insurance is universally acknowledged to be an institution that eliminates
'risk' and provides the timely aid to the family in the unfortunate event of death of the
breadwinner.
Life insurance is a written contract between the insured and the insurer that
provides for the payment of the insured sum on the date of the maturity of the contract or
on the unfortunate death of the insured, whichever occurs earlier.
Life Insurance is a contract for payment of a sum of money to the person assured (or
nominee) on the happening of the event insured against. The contract provides for the
payment of premium periodically to the Insurance Company by the assured.
The contract provides for the payment of an amount on the date of maturity or at
specified dates at periodic intervals or at unfortunate death, if it occurs earlier.
The possibility of damage to assets caused by any peril is the risk that the asset is
exposed to
Risk means the possibility of loss or damage that may or may not happen.
It is because of the uncertainty about the risk that insurance becomes important.
No person should be in a position to make the risk happen or occur and take unfair
advantages.
It covers the risk of dying too early and living too long.
Individual himself also needs financial security for the old age or on his becoming
permanently disabled when his income will stop.
It covers tangible assets but the concept can be extended to intangibles also.
Human life is an income generating assets that can be lost in case of early death or
disability caused by an accident.
CHAPTER: 2
RESEARCH DESIGN
Introduction
A systematized study requires proper planning and implementation
of the same. So, this research design includes an outline of the
study, which was conducted at ICICI PRUDENTIAL life insurance.
Bangalore. The design of the study contains information stating the
statement of the problem, objectives of the study, need for the study,
and scope of the study, significance of the study, research
methodology, and sources of data, tools and techniques of data
collection, plan of analysis, limitations of the study and operational
definitions of the concepts.
Premium: The fee paid by the insured to the insurer for assuming the
risk.
Protection: Savings through life insurance guarantee full protection against risk of
death of the saver. In life insurance, on death, the full sum assured is payable (with
bonuses wherever applicable).
Liquidity: Loans can be raised on the sole security of a policy which has acquired
loan value. Besides, a life insurance policy is also generally accepted as security
for even a commercial loan.
Net Asset Value (NAV):
e. Methodology of research
I. Type of Research:
The research carried out in this study is descriptive in nature.
INSURANCE
POLICY NAME
COMPANIES
ICICI PRUDENTIAL
OM KOTAK
Capital Multiplier
BIRLA SUNLIFE
MET LIFE
Met smart
Keeping in mind the no. of pages, only four major life insurance companies were
taken under consideration for the comparative study.
Lack of information could be also being misleading, thus leading to an undesirable
impact as a result such information based on decision making.
Chapter scheme
Chapter 1.Introduction
Chapter 2 . Research Design.
Chapter 3.
Company Profile.
Chapter 4.
Analysis and interpretation of data
Chapter 5
Summary of Findings, Conclusion and Recommendations.
CHAPTER: 3
COMPANY PROFILE.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and prudential plc, a leading international financial
services group headquartered in the United Kingdom. Incorporated on July 20, 2000 it is a
74:26, ICICI Prudential was amongst the first private sector insurance companies to begin
operations in December 12, 2000 after receiving approval from Insurance Regulatory
Development Authority (IRDA).
ICICI Prudential equity base stands at Rs. 20.60 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. As on the date Jan 2007 the
company issued over 1.3 million policies. The total company asset is 14000 crore. Today
the company is the #1 private life insurers in the country. As on date the company
included 580 offices, 234000 advisors & 22 banc assurance partners.
Prudential plc
Established in London in 1848, Prudential plc, through its businesses in the UK and
Europe, the US and Asia, provides retail financial services products and services to more
than 20 million customers, policyholder and unit holders worldwide. As of December
2006, the company had over 251 billion founds in funds under management. Prudential
has brought to market an integrated range of financial services products that now includes
life assurance, pensions, mutual funds, banking, investment management and general
insurance. In Asia, Prudential is UK's largest life insurance company with a vast network
of 24 life and mutual fund operations in twelve countries
China
Hongkong
India
Indonesia
Japan
Korea
Malaysia
The Philippines
Singapore
Taiwan
Thailand
Vietnam
Founded in 1848 the UKs largest life insurer for over 150 years
Vision
To make ICICI Prudential the dominant Life and Pensions player built on trust by
world-class people and service.
Understanding the needs of customers and offering them superior products and
service
Leveraging
technology
to
service customers
quickly, efficiently
and
we can play a significant role in redefining and reshaping the sector. Given the quality of
our parentage and the commitment of our team, there are no limits to our growth.
The success of the company will be founded in its unflinching commitment to 5 core
values, namely:
Integrity
Customer first.
Boundary less
Ownership and
Passion
Each of the values describes what the company stands for, the qualities of our
Values
The success of the company will be founded in its unflinching commitment to 5
core values -- Integrity, Customer First, Boundary less, Ownership and Passion.
MANAGEMENT:
The ICICI Prudential Life Insurance Company Limited Board comprises reputed
people from the finance industry both from India and abroad.
Board of Directors
Mr. K.V. Kamath, Chairman
Mr.Barrey Stowe.
Mrs. Kalpana Morparia
Mrs.Chanda Kochhar.
Mr. HT Phong.
Mr.M.P.Modi
Mr.R.Narayanan
Mr. Mark Tucker
Mrs. Lalita D. Gupte
Management Team
Ms. Shikha Sharma, Managing Director & CEO.
Ms. Anita Pai, Chief Customer service & Technology.
Mr.N.S.kannan, Executive Director
Mr.Bhargav Dasagupta, Executive Director.
Mr.Azim Mithani, Chief Actuary.
Mr.Puneet Nanda ,Chief Investment Officer
Mr.Binayak Datta, Chief- S&D
Distribution
ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India, having commenced operations in 62 cities and towns in India. These are:
Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad, Bangalore, Bareilly,
Bhatinda, Bhopal, Bhubaneshwar, Chandigarh, Chennai, Coimbatore, Dehradun, Goa,
Guntur, Gurgaon, Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar,
Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam,
Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mumbai, Nagpur, Nasik,
Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Siliguri, Surat, Thane,
Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vashi, Vijayawada and Vizag.
The company has twelve banc assurance tie-ups, having agreements with ICICI
Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank and Punjab &
Maharastra Co- operative Bank, Shamrao Vithal Co-operative Bank & Jalgaon Peoples
Co- operative Bank, Goa state Co-operative Bank, Indoor Paraspar Sahakari Bank,
Manipal State Co-operative Bank, as well as some co-operative banks and corporate
agents. It has also tied up with organizations like Dhan for distribution of Salaam Zindagi,
a policy for the socially and economically underprivileged sections of society.
ICICI Prudential has recruited and trained over 100,000 insurance agents to
interface with and advice customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers.
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 financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA).
ICICI Prudentials equity base stands at Rs. 20.60 billion with ICICI Bank and prudential
plc holding 74% and 26% stake respectively. For the past four years, ICICI Prudential has
retained its position as the No.1 private life insurer in the country, with a wide range of
flexible products that meet the needs of the Indian customer at every step in life. To know
more about the company, please visit www.iciciprulife.com.
Milestones Crossed
Capital infusion stands at Rs.20.60 billion.
Over 1.3 million Policies issued since inception
The total asset is 14000 crore.
Recently they have introduced two new funds namely
Flexi growth & Flexi balanced.
Around 40% market share by premium among private players.
First Private Life Insurer to launch Pension plan with Sec 80CCC Tax benefit.
They have launched one more best health product named Hospital care
Strength in Numbers
4 health products.
4 Retirement plans
Over 234000 advisors present in 580 offices covering all major metros. Delivery
through Alternate Distribution channels like Brokers, Corporate Agents and
Partner Banks as well.
Well positioned to target the mass & the mass affluent segments
Largest Bancassurance set up in the country today with more than 4000 policies
issued per month
insurers to nearly 40%, from 33% as of end-December. The company's first-year premium
income in the April-January period stood at Rs 464.6 crore, accounting for 39.3% of the
Rs 1,364 crore premiums booked by all private life insurers together.
Considering the entire life market, including the Rs 9,780 crore booked by Life
Insurance Corporation, ICICI Prudential market share works out to around 4.17%. The life
insurance market continues to be dominated by LIC, which has about 87.8% share. This is
only a marginal dip from its 88.2% share in end-December. These comparisons are only
for first year or new business premium. If renewal premium were to be taken into account,
LIC's share would increase further to over 96%.
Recently Bajaj Allianz has made a claim where it has said that it has become the
No .1 private life insurance. But when we go on with full details, ICICI Prudential is still
the No 1 till this date as it has been clearly been stated in the media and the company
website.
According to business figures brought out by the Insurance Regulatory and
Development Authority (IRDA), the first-year premium mobilized by ICICI Prudential
Life Insurance in the first ten months amounted to Rs 468.4. This is more than twice the
premium income generated by its closest rival Birla Sun Life that raised Rs 195 crore
during the same period.
HDFC Standard Life and Tata AIG have retained their third and fourth positions.
Interestingly, there are three companies that are neck-and-neck in the battle to be among
the top five with a market share of close to 7% - Allianz Bajaj, Max New York Life and
SBI Life Insurance.
In the group insurance market, LIC's share in the country is around 93%. Among
the private companies, SBI Life, Birla Sun Life and HDFC Standard Life dominate the
group insurance segment. SBI Life, with its group policies for mortgage loan protection
and depositor insurance, has close to 45.8% of the group market among private
companies. Birla Sun Life has a 23.4% share, followed by HDFC Standard Life which has
an 18.4% share.
AWARDS.
Awards
India's Most Customer Responsive Insurance Company
Avaya Global Connect - Economic Times
Customer Responsiveness Awards
Silver Effie for Effectiveness of the Retire from Work not life advertising campaign
Effies 2003
Recognitions
IMM Award for Excellence
Institute of Marketing & Management
Unit
Value
(Rs./unit)
15.0842
23.74
45.77
45.94
22.31
13.5407
15.66
12.3785
12.3544
20.07
11.7643
24.71
11.9356
15.33
11.2349
11.8717
25.78
11.2353
15.72
11.2508
13.41
13.44
11.6
11.03
Plan
10.6395
10.8126
10.923
11.55
11.16
10.49
11.7695
11.71
11.459
Flexi Growth *
10.52
Flexi Growth II ^
10.55
10.5
10.57
10.5
Flexi Balanced *
10.32
Flexi Balanced II ^
10.38
10.27
10.42
10.31
Riders
Product
Min
Rati Age at Premi
ng Entry um
Min Max
Sum
Assured
Min
Cove
r
Ceasi
Matur ng
Term ity Age Age
Allow
ed
60
6,000
50,000 1 Crore 10
Cash Back
16
55
6,000
Smart Kid
1.5
20
60
1.5
20
30
18
70
70
70
70
8,400
1 Lac 30 Lacs 10
25
70
70
AD / AB / IBR
60
18,000
1,Lac 30 Lacs 10
25
70
70
20
50
25
60
60
AD, IBR
2 Lac 10 Lacs 5
15
65
65
NA
Lifeguard SP
18
50
Lifeguard ROP
18
50
2,400
1 Lac 1Crore
25
65
65
AD, AB
Lifeguard WROP
18
50
2,400
1 Lac 1 Crore 5
25
65
65
AD, AB
Life Link- SP
62
25,000
70
NA
105% Of SA
Life Time
60
18,000
1 Lac 50 lacks 3
70
AD, CI (S), MS
Forever Life- RP
20
60
6,000
No
50,000 Limit
30
50
70
70
18
60
10,000
1,00,00
0
50 lacks 10
52
50
70
70
AD, CI(S), MS
18
62
25,000
105% Of SA
52
50
70
70
NA
18
60
No
10,000 50,000 Limit
10
50
75
75
Secure Plus
60
6,000
10
75
75
30,000
30
N.A
Health Assure plus
1.5
18
55
1800
1 lakh 10 lakh 10
30
48
65
65
Investments plans
LifeLink II is a unique plan that combines the security of a life insurance policy
with the opportunity of enjoying high returns on your investments, without the market
risks compromising on the protection of your family!
Death Benefit: The Sum Assured under the product has 2 options, either 500% of the
initial premium or 105% of the initial premium. In the event of an unfortunate death, the
beneficiary will receive higher of the value of units or the initial death benefit, less any
withdrawals.
Withdrawal Benefit: One can make partial withdrawals from the accumulated value of
the policy after completion of one policy year.
Flexibility: Choose from four fund options, based on your investment objective and risk
appetite. If at a later stage your financial priorities change, you can switch between the
various fund options, absolutely free, 4 times a year.
Savings Solutions
this product range truly makes the unit linked products ideal even for wider range of
audience, with lower premium levels and the added security of a capital guarantee. It is a
unique range of product comprising of pension and saving plans, and is ideally suited for
those enjoy flexibility, transparency and, of course guarantees.
A complete market-linked insurance plan that adapts itself to your changing
protection and investment needs, throughout a lifetime.
Protection Solutions
Lifeguard is a protection plan, which offers life covers at very low cost. It is available in
3 options
Level of assurance without level return of premium along with two riders
ADBR and WOP
Child Plans
5. Policy benefits continue: The educational benefits of the policy continue, ensuring
that your child can realize his or her dreams without any hassles.
6. Development Allowance: Smart Kid guarantees regular income to secure your childs
educational career and also ensures his or her all-round development, for a nominal
additional amount. The Income Benefit Rider takes care of this through an annual
payment of 10% of the sum assured, to your child, till the maturity of the policy, in the
unfortunate event of the death of the parent.
All Smart Kid plans can be enhanced with the Accident & Disability Benefit Rider and
Rider. You can also an Accident Benefit Rider to a Smart Kid Regular Premium policy,
and a Waiver of Premium Rider (WOP) to Smart Kid unit-linked regular premium policy.
Market-linked Solutions:
Life Link II is a single premium Market Linked Insurance Plan, which combines life
insurance cover with the opportunity to stay, invested in the stock market.
Offers customers the flexibility and control to customize the policy to meet
the changing needs at different life stages. It offers 4 fund options - Preserver, Protector,
Balancer and Maxi miser.
ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance
benefits to their employees.
ICICI Pru Group Gratuity Plan: ICICI Pru''s group gratuity plan helps employers fund
their statutory gratuity obligation in a scientific manner. The plan can also be customized
to structure schemes that can provide benefits beyond the statutory obligations.
ICICI Pru Group Superannuating Plan: ICICI Pru offers a flexible defined
contribution-superannuating scheme to provide a retirement kitty for each member of the
group. Employees have the option of choosing from various annuity options or opting for
a partial commutation of the annuity at the time of retirement.
ICICI Pru Group Term Plan: ICICI Pru''s flexible group term solution helps provide
affordable cover to members of a group. The cover could be uniform or based on
designation/rank or a multiple of salary. The benefit under the policy is paid to the
beneficiary nominated by the member on his/her death.
Rural plans
ICICI PruLifes Rural Products are designed to meet the needs of the rural consumers.
These products offer the following features:
Life Cover
Savings Option
Regular Premiums
ICICI Pru Suraksha is a regular premium policy with the following features:
Individual policy
complete
renal
failure,
for
the
remainder
of
the
policy.
This benefit is payable on more than one occasion when the life assured
undergoes surgery. However the total benefit payable in case of all the procedures is
restricted to a maximum of 50% of the sum assured.
Major Surgical Assistance rider is available with Save n Protect, Cash Back, LifeTime,
Lifetime II, Forever Life, SecurePlus, CashPlus and SecurePlus Pension. Premiums paid
under this rider are eligible for tax benefits under Section-80D.
Accident & Disability Benefit Rider (ADBR):
Benefits payable on death due to an accident
If the policyholder dies due to an accident, 100% of the rider sum assured is paid
in addition to the basic sum assured.
In case the policyholder dies in a land surface, mass public transport system
wherein the policyholder was traveling as a fare-paying passenger, then 200% of
the rider sum assured is paid.
Plus, 10% of the rider sum assured is paid for the next 10 years, which helps in
providing that extra money and takes care of sudden financial set back that occurs
after a tragic disability.
Accident & Disability Benefit rider is available with Save n Protect, Cash Back,
Smart Kid Child Plans, Premier Life, LifeTime, LifeTime II, LifeTime Pension II,
Forever Life, SecurePlus, CashPlus, SecurePlus Pension, Lifeguard ROP, Lifeguard
WROP, Group Term Plan, InvestShield Life, InvestShield Cash, InvestShield Gold and
InvestShield Pension. In case of Lifetime II, Lifetime Pension II, SecurePlus, CashPlus,
Lifeguard ROP and Lifeguard WROP, the waiver of premium benefit is not available.
Premiums paid under this rider are eligible for tax benefits under Section 88.
Accident Benefit Rider (ABR):
If the policyholder dies due to an accident, 100% of the rider sum assured is paid
in addition to the basic sum assured.
Accident Benefit rider is available with SavenProtect, Cash Back, Smart Kid
regular premium, Forever Life, SecurePlus, CashPlus and SecurePlus Pension.
Premiums paid under this rider are eligible for tax benefits under Section 88.
Income Benefit Rider
In case of death of the life assured during the term of the policy, 10% of the rider
sum assured is paid annually to the beneficiary, on each policy anniversary till maturity
of the rider.
Income Benefit rider is available with Smart Kid Child Plans, SecurePlus and
CashPlus. Premiums paid under this rider are eligible for tax benefits under Section-88D
Waiver of Premium Rider (WOP)
On total and permanent disability due to an accident, all future premiums for both
the base policy and rider(s) will be waived till the end of the term of the rider or death of
the life assured, if earlier.
Waiver of Premium rider is available with SecurePlus, CashPlus, Lifeguard ROP,
Lifeguard WROP, Smart Kid Unit-linked regular premium II, Lifetime II, LifeTime
Pension II, SecurePlus Pension, InvestShield Life, InvestShield Cash and InvestShield
Pension.
Premiums paid under this rider are eligible for tax benefits under Section 88.
CHAPTER:4
0-55
18-65
.30-65
15-70
no of years
65
70
65
55
18
0
Icici
om kotak
15
0.3
Birla
Metlife
insurance companies
Minimum age
Maximum age
Graph 6.1
Analysis
From the above table we can clearly know the minimum &
maximum age of the investor & the comparison of age groups
between 4 insurance companies. In ICICI insurance can be started
by the birth of child, while in others it various from days to years.
In OM KOTAK insurance can be started at 18 years. In BIRLA
SUN LIFE insurance can be started at 30 days and in MET LIFE it
is from 15 years.
Inference
From the above graph it shows clearly that ICICI gives more opportunity to the
Investors as it starts by the birth of child.
10-30
5-30
5-30
10-20
Graph 6.2
No of years
30
10
Icici
30
5
Om kotak
30
20
10
5
Birla
Metlife
Insurance companies
Minimum years
Maximum years
Analysis:
By the above table we know that in ICICI the minimum term for investment is 10
to 30 years, in OM KOTAK it starts from 5 to 30 years. In BIRLA SUN LIFE it starts
from 5 to 30 years and while in MET LIFE it stars from 10 to 35 years.
Inference:
Sum assured
Option to choose a specific level of sum assured as
per your needs, based on a multiple of your annual
premium
Depends on the amount of premium paid.
Minimum: Rs 50,000 for minors and Rs 75,000 for
adults
Depends on the option taken
From the above table we can know that in BIRLA SUNLIFE the minimum sum
assured for minors is 50,000 & for adults it is 75,000. While in other insurance
companies like ICICI the sum assured is based on the annual premium. In OM KOTAK it
is based on the amount of premium paid and while in METLIFE it is based on the option
took by the investor
Inference:
From the above table it shows clearly BIRLA SUNLIFE is the most advantageous
in case of sum assurance while compared to others.
Maturity benefit
Higher of the value of the unit fund of the
guaranteed value of the unit fund.
Value of accumulation account or the SA whichever
is higher, as a lump sum or as systematic
withdrawal
Policy fund
Policy fund
Inference:
From the above table it shows clearly that maturity benefit is worthwhile in ICICI
when compared to other insurance companies.
MetLife-Met smart
Death benefit
Sum assured + Higher of the value of the unit fund
or guaranteed value of the unit fund.
(Sum Assured- premiums due but not paid) of value
of accumulation account whichever is higher.
Face amount + policy fund (where the policy is
bought on or prior to the 1st birthday of the life
insured, only policy fund is payable to the policy
owner in the event of death of the life insured within
the first policy year)
Up to age of 100
Inference:
From the above table it shows clearly that the death benefit in MET LIFE is much
more beneficial than other insurance companies.
MetLife-Met smart
Withdrawal benefit
None
Partial or complete withdrawals are available from
the 3rd year onwards
Partial or complete withdrawals are available from
the 3rd year onwards. In a year 2 with drawls are
free of charge. For every additional withdrawal a
charge of Rs 100 will be levied.
Any time after one year, first two partial
withdrawals are free. The company will charge Rs
250 or 2% of amt withdrawn.
Inference:
From the above table it shows clearly that the withdrawal benefits are
advantageous in BIRLA SUNLIFE & MET LIFE while compared to ICICI & OM
KOTAK
Contribution
8000
20970
10000
ICICI
OM KOTAK
Birla SunLife
MetLife
50000
Analysis:
From the above table we can know that minimum contribution to be paid in ICICI
is Rs. 8000. In OM KOTAK Rs 10000, in BIRLA SUNLIFE Rs 50000 for minors and
75000 for majors. In METALIFE it is 20970 p.a.
Inference:
From the above graph, it shows clearly that the contribution in ICICI will be most
beneficiaries to the investors compared to other insurance companies.
Inference:
From the above table, the extended life coverage in MetLife is most beneficial
compared to ICICI.
Not available
Not available
Not limited
Inference:
From the above table, it shows clearly that the flexibilities to increase or decrease
the investors contribution are outstanding in METLIFE, while compared to ICICI.
Investment options
A single unit fund with an asset allocation of
minimum 70% in debt and a maximum 30% in
equity.
No option to choose your investment. The premium
after the deductions is just funneled into a
accumulation account which is invested as per the
risk appetite and objectives of the company
Protector, Builder & Enhancer
More than 6 options to invest
Investment options
3
6
ICICI
OM KOTAK
BIRLA SUNLIFE
METLIFE
Analysis:
From the above table, we can know that the investment options in ICICI
Prudential are single unit fund. In OM KOTAK, no option to choose. In BIRLA
SUNLIFE 3 options are available. While in METLIFE, more options are available as
much as 6.
Inference:
From the above graph, we can know that the investment option in METLIFE is
better wile compared to other insurance companies.
Om KotakCapital
multiplier
BirlaSunlifeFlexi save Plus
MetLife-Met
smart
Surrender value
The surrender value of the policy is available after the 1 st year and
would differ from year to year. The surrender value is paid out as
a %tage of the value of the unit fund.
More than 1 year: 10%.
After 2 years 20%.
After 3 years 30%.
After 4 years 40%.
After 5 years 50%.
After 6 years 60%.
After 7 years 70%.
After 8 years 80%.
After 9 years 90%.
After 10 years and more 95%.
Value of units after the 3rd year
The surrender charges will be 100% of the annualized premium
for the first 24 months of the policy. It will be 24% in month 25
and will reduce by 1% every month thereafter and will be zero
from the 49th month onwards
Based on %tage of premium
More than 1 year: 0%.
After 2 years 0%.
Graph 6.5
SURRENDER VALUE
1
3
ICICI
OM KOTAK
BIRLA SUNLIFE
MET LIFE
Inference:
From the above graph, we can know that the surrender value in ICICI starts after
1st year is 10%, which is comparatively better than other insurance companies.
Not available
Not available
MetLife-Met smart
Analysis:
From the above table, we can know that the death benefit can
be taken once in 5 year in BIRLA SUNLIFE and in METLIFE the
death benefit provisions can be taken after 3 years, while in ICICI
and OM KOTAK this provision is not available.
Inference:
From the above table, we can know that the death benefit in METLIFE is superior
to BIRLA SUNLIFE as it can be taken after 3 years and can have a benefit to change
once a year.
Different Company
Additional credits
End of the 5th policy year: 10% of the initial annual
premium.
End of the 10th policy year: 15% of the initial annual
premium.
End of the 15th policy year: 20% of the initial annual
premium
End of the 20th policy year: 25% of the initial annual
premium.
End of the 25th policy year: 30% of the initial annual
premium.
End of the 30th policy year: 35% of the initial annual
premium.
Not available
Not available
Not available
0
ICICI
OM KOTAK
0
BIRLA
SUNLIFE
0
METLIFE
Companies
additonal
credits
Inference:
From the above graph, we can know that additional credits are only given in
ICICI but not in other insurance companies.
Top-up
Not available
Dump in premium are available up to 25,000
Available
Analysis:
From the above table, we can know that the top-up facility in
ICICI is up to Rs. 5000. In OM KOTAK it is available (but not
disclosed). And in METLIFE it is up to Rs. 25000. Finally in
BIRLA SUNLIFE the top-up facility is not available.
Inference:
From the above table we can clearly describes that the top-up facility in
METLIFE is better compared to ICICI and OM KOTAK.
Switch
Not applicable
Not applicable
1 free switch per year. For every additional switch, a
charge of Rs. 100will is levied.
1st switch of the policy free. Any time after the first
three months for each switch. Company charges
400/- or 0.05% of the ant on switched.
Analysis:
From the above table, its clear that in BIRLA SUNLIFE one
free switch per year can be made and for every additional switch
they charged Rs. 100, while in METLIFE free switch can be made
after 3 months of the policy and the first switch of the policy is
free. After that every switch costs Rs. 400 of the amount switched.
In ICICI and OM KOTAK there is no such switching facility
available.
Inference:
From the above table, we can know that the switch facility in METLIFE is good
when compared to BIRLA SUNLIFE.
MetLife-Met smart
Initial charge
st
Not disclosed
5 or greater term: 1st year- 29.9%; 2nd year onwards;
5%
10 or greater term; 1st year 54.6%; 2nd and 3rd year;
7.5%; 4th year on wards: 5%
15 or greater term; 1st year 65%; 2nd and 3rd year;
7.5%; 4th year on wards: 5%
Year 1 (per month) 200
Year 2 on wards (per month) - 75
Analysis:
From the above table, we can know that in ICICI the initial
charges vary according to the premium paid. In OM KOTAK it is
not described. In BIRLA SUNLIFE it is 29.9% for the first year
and in METLIFE first year 200(per month) and second 75 (per
month).
Inference:
From the above table, it is clear that the initial charges varies from company to
company depending upon their premium paid.
Admin charge
Not disclosed
Inference:
From the above table, we can know that the admin charge varies form company to
company according to their internal rules.
2.5
2
1.5
1
0.5
0
Aministration
Charges p.a
For OM Kotak the general view based on other Insurance companies is taken to calculate
the annual administration charges.
Analysis:
From the above table, we can know that the fund management charges in ICICI
are 1.25% p.a. In OM KOTAK not mentioned. In BIRLA SUNLIFE it is 1% p.a. And in
METLIFE it is maximum of 2.5% p.a.
Inference:
From the above table, we can clearly know that the fund management charge is
maximum in METLIFE while compared to ICICI and BIRLA SUNLIFE.
Different Company
Riders
Analysis:
From the above table, we can know that the riders provided by ICICI are 3. In
OM KOTAK also 3 and BIRLA SUNLIFE again 3 and in METLIFE is has not been
disclosed.
Inference:
From the above table, we can know that there are different riders in different
insurance companies according to availability.
ICICI
PRUDENTIA
OM
KOTAK
BIRLA
SUNLIFE
MET
LIFE
(Capital
(Flexi
(INVEST
SHIELD LIFE)
Multiplier
)
Save
Plus)
1
0
0
1
0
0
0
1
0
0
0
0
0
1
1
0
0
1
0
0
0
0
0
1
1
0
0
0
0
0
0
1
INCREASE /
DECREASE YOUR
CONTRIBUTION
INVESTMENT OPTIONS
1
1
0
0
0
0
0
0
0
1
0
1
INCREASE /
DECREASE OF DEATH
BENEFIT
ADDITIONAL CREDITS
1
0
0
1
1
0
0
0
0
1
1
0
0
0
0
1
1
1
0
1
0
1
0
0
10
COMPANIES
AGE
TERM
SUM-ASSURED
MATURITY BENEFIT
DEATH BENEFIT
WITHDRAWAL
BENEFIT
CONTRIBUTION
EXTENDED LIFE
COVERAGE
SURRENDER VALUE
AUTOMATIC PREMIUM
PAYMENT
TOP-UP
SWITCH
INITIAL CHARGE
ADMIN CHARGE
FUND MANAGEMENT
CHARGE
RIDERS
Total
(Met
Smart)
Graph 6.7
10
8
10
8
7
6
Points
Gained
4
2
0
icici
S1
om kotak
birla
sunlife
Insurance Companies
met life
Series1
Graph showing the best insurance company in the unit-linked plan
Ranks
1
2
3
4
CHAPTER: 5
The Additional credits are given to insurance investors only in ICICI, but not in
others.
The Top-up facility in MET LIFE is better as it allows to dump-in as much as Rs.
25,000.
The Switch facility in MET LIFE is relevant than BIRLA SUNLIFE.
The Initial charges of the insurance companies vary depending upon their
premium paid.
The Admin charges of the insurance companies vary according to their internal
rules.
The Fund management charges in BIRLA SUNLIFE are more affordable by an
investor.
The Riders facility differs from company to company according to policy.
CONCLUSIONS
Numbers of factors were taken into consideration before reaching a conclusion
about the insurance & ICICI PRUDENCIAL LIFE INSURANCE companies. That is
overall performance of INVEST SHIELD LIFE including following factors.
the assumption on which this plans to be valid through the planned years. Even the
corporate planning exercise will provide effective trust and direction to the organization
as selection its future and deliberate strategic decision making. The customers and
employees of the company are fulfilling their role that has been assigned to them. The
companys future apprehension is lies on the head of its customers.
RECOMMENDATIONS:
To make investment in insurance one should be aware of different investment
strategies and ways to allocate the assets.
Indian Financial System is changing rapidly with changes come a lots of
challenges and it is only the alert and behaviors of investors with a long-term
thinking will success to meet all their future unseen challenges.
More reputation is needed for the company, as insurance policies are sold on the
basis of reliability.
There should be the arrangement of drop-boxes in all-important places in the city.
As all knows advertisement cant sell the policies but the people can do the same.
So they should be aware of the products of the company and benefits of those
products.
Company should concentrate on the 25-30 year age group, because this is the time
when people show more interest in investment.
There should be low premium amount in the urban area. So that even lowincome group people can also invest their money in policies.
Company should give special training to their insurance consultants time by time.
There should be some arrangement of telecasting their products in regional
television in order to reach the rural people.
To make investment in insurance one should be aware of different investment
strategy & ways to allocate the assets, the detail description is given below.
Table showing the different investment strategies and ways to allocate the
asset
Life
Age Circumstances
Strategy
Life
Cycle
Young
Insurance
20s
Life
insurance
Adult
needs
low
accumulated
growth,
taking
Young
30s
Family
as
Family
riskis
Subtract
adequate
life
existing
insurance
and
from
current
invertible in earnest.
asset
protection
needs
and
continue
cover
the
aggressive
40s
have
dependents.
ability
and
Mature
&
High
education
grown
up
Home
loan
of
children.
wealth
assets
difference.
creation.
Needs low as asset
Maintain
base
cover
builds
up;
the
of
nearly
balance
shorter existing
investment
assets.
portfolio
the
by
deploying funds in
Empty
50s
are
safer instruments.
Divert new surplus
Covers as long
home
to paid retirement
as
corpus,
earnings.
debts,
portfolio risk.
Children
independent,
Nesters
surplus
Retired
60 +
invertible
peak,
reduce
you
are
and
preparation
for
liquidation.
Health
expenses
Create
adequate
No life cover
cash
flows from
needed.
expenses;
safe
investments,
retirement
creating
Your
invest surplus in
corpus
instruments
that
top priority.
comfortable
bat
inflation to prevent
erosion
of
retirement capital.
needs.
should
BIBLIOGRAPHY
Books:
1. I.M.Pandey --Financial Management, 8th Edition, Vikas Publication, New Delhi.
2. Prasanna Chandra --Investment Analysis and Portfolio Management
CFM TMH Professional Services in Finance,
Tata MacGraw Hill.
3. Dr. B.G.Sathyprasad --Financial management, 2nd Edition,
Himalaya Publication, New Delhi.
4. L.M.Bhole --Financial Institutes and Markets, 3rd Edition, Tata MacGraw Hill.
Magazines:
The Chartered Accountants
Insurance Industry, June 2003-04, Volume: - 51, No: 12
Journal of the Institute Of Chartered Accountants Of India.
Insurance Post
Outlook Money
Dalal Street
Investment Monitor
WEBSITES:
www.irdaindia.org
www.iciciprilife.com
www.metlife.com
www.moneycontrol.com
ANNEXURE.
QUESTIONNAIRE.
No
If yes
How & when it will be available to policyholder?
8. What is the minimum Contribution of premium paid in this policy?
No
If yes
What are its benefits & how it can be available to policyholder?
10. Is there any flexibility to Increase / Decrease the contribution in this policy?
Yes
No
If yes
What are the limitations?
11. What are the various Investment options in this policy?
No
If yes
No
If yes
No
If yes
Suggest the mode & pattern?
15. Would you pay any Additional credits to policyholder at any point of time
during the polity term?
Yes
No
If yes
Mention its structure from when it starts?
No
If yes
What should be the minimum sum of amount that should be Top-up?
17. Do you have the option of Switching between funds, as the policyholder
requires?
Yes
No
If yes
When & how this options can be utilized?
18. How do you allocate the premium rates?
19. Do you charge any Admin charges on this policy?
Yes
No
If yes
Mention how much?
20. How much do you charge towards the fund management process?
21. Do you give the benefit of Riders in this policy?
Yes
No
If yes
Mention their types?