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A PROJECT REPORT

ON
A COMPARITIVE STUDY OF INVEST SHIELD LIFE OF ICICI
PRUDENTIAL WITH OTHER INSURANCE COMPANIES

Dissertation Submitted to Bangalore Univesity towards the


Partial Fulfillment of Requirement for the Award of

MASTER OF BUSINESS ADMINISTRATION


To

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

h. Need for the Insurance


2.

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.

Summary of Findings, Conclusion and


Recommendations.
BIBLIOGRAPHY.
ANNEXURE.

Questionnaire.

List of Tables

Table No.
Table 6.1
Table 6.2

Page
No.

TITLE

Showing Minimum and Maximum Age of Investor

Showing Minimum and Maximum term for


Investment

Table 6.3
Table 6.4
Table 6.5
Table 6.6
Table 6.7
Table 6.8

Showing the sum assured by the insurance


companies
Showing the maturity benefit to investors
Showing the Death benefit to investors
Showing the Withdrawal benefit to investors

Showing the Contribution by investors


Showing the Extended life coverage to
investors

Table 6.9

Showing the Flexibility to increase or


decrease the contribution by investors

Table 6.10

Showing the Investment options to


investors

Table 6.11

Showing the Surrender value

Table 6.12

Showing the Automatic Premium payment


to investors

Table 6.13

Showing the Increase / decrease of death


benefit to investors

Table 6.14
Table 6.15
Table 6.16
Table 6.17
Table 6.18
Table 6.19
Table 6.20
Table 6.21

Showing the Additional credits to investors


Showing the flexibility of Top-up to investors
Showing the flexibility of Switch to investors
Showing Initial charge to the investors
Showing Admin charge to the investors
Showing Fund management charge to the investors
Showing Riders benefit to the investors
Showing the best insurance company in the unit-linked
plan

List of Graphs

Graph No.
Graph 6.1

TITLE

Showing Minimum and Maximum Age of Investor

Graph 6.2
Graph 6.3
Graph 6.4
Graph 6.5

Showing Minimum and Maximum term for Investment


Showing the Contribution by investors
Showing the Investment options to investors

Graph 6.6

Showing the Additional credits to investors

Graph 6.7

Showing the best insurance company in

Showing the Surrender value

the unit-linked plan

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.

The specific objectives of the present study are To study the


structure of insurance company and insurance market, To study the
existing business of insurance industry, To study the investors

behavior regarding insurance, To study the perception level of


insurance companies towards customers, To study the wide
spectrum of insurance companies with a single investment policies,
To evaluate the insurance market under 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.

There should be some

arrangement of telecasting their products in regional television in order to reach the


rural people. More reputation is needed for the company, as insurance policies are sold
on the basis of reliability.

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.

KEY ACTIVITIES OF FINANCIAL MANAGEMENT

Financial analysis, planning and control

Management of firms assets structure

Management of firms financial structure

SCOPE OF FINANCE FUNCTION:

Estimating financial requirement

Deciding capital structure

Selecting a source of finance

Proper cash management

Selecting a pattern of investment

Implementing financial controls

THREE MAIN FINANCIAL DECISIONS

Investment decision

Financing decision

Dividend decision

Having discussed key activities of financial management, scope of finance


functions and three main financial decisions it is necessary to concentrate on THE

INDIAN FINANCIAL SYSTEM which is a back bone to all the above.

FUNCTIONS OF FINANCIAL SYSTEM:

It provides a payment system for the exchange of goods and services

It enables the polling of funds for undertaking large-scale enterprise

It provides a mechanism for spatial and temporal transfer of resources

It provides a way for managing uncertainty and controlling risk

It generates information that helps in co ordinate decentralized decision


making

It helps in dealing with the problem of informational asymmetry

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

THE FINANCIAL SYSTEM


Bonds
Funds
Deposits/Shares

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.

Promoting and regulating professional organizations connected with the insurance


and re insurance business.
Calling for information from, undertaking inspection of, conduction enquires and
investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organizations connected with the insurance business.
Control and regulation of the rates, advantages, terms and conditions that may be
offered by insurers in respect of general insurance business not so controlled and
regulated by the Tariff Advisory committee u/s section 64U of the Insurance Act,
1938 (4 of 1938).
Specifying the form and manner in which books of account shall be maintained
and statement of accounts shall be rendered by insurers and other insurance
intermediaries.
Regulating investment of funds by insurance companies.
Regulating maintenance of merging of solvency.
Adjudication of disputes between insurers and intermediaries or insurance
intermediaries.
Supervising the functioning of the tariff advisory committee.
Specifying the % of premium income of the insurer to finance schemes for
promoting and regulation professional organizations referred to in clause (f).
Specifying the % of life insurance business and general insurance business and
general insurance business to be undertaken by the insurer in the rural or social
sector.
Exercising such other powers as may be prescribed.

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.

Composition Of Insurance Industry


The insurance industry mainly comprises:
Insurance Carriers:
Insurance carriers are large companies that provide insurance and assume

the risks

covered by the policy


Insurance Agents:
An insurance agent takes up an agency for selling life insurance policies, while the
insurance underwriter reviews insurance applications and decides whether they should be
accepted or rejected.
Insurance Surveyors:
Insurance surveyors are qualified investigators deputed for the assessment of losses,
according to their qualifications and experience.

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.

PLAYERS IN LIFE AND NON-LIFE SECTOR.


LIFE

NON LIFE

ICICI Prudential Life Insurance

ICICI-Lombard Insurance

Kotak Mahindra Life Insurance

Reliance General Insurance

Max New York Life Insurance

IFFCO-Tokyo General Insurance

HDFC Standard Life Insurance

HDFC Chubb General Insurance

Bajaj Allianz Life Insurance

Bajaj Allianz General Insurance

Birla Sun Life Insurance

Royal Sundaram General Insurance

Aviva Life Insurance

Cholamandalam General Insurance

ING Vysya Life Insurance

National Insurance Company

Reliance Life Insurance

New India Assurance Company

Tata AIG Life Insurance

Tata AIG General Insurance

MetLife Insurance

Oriental Insurance

SBI Life Insurance

United India Insurance

LIC

History of Insurance:

Im sure weve all heard of the word, and have an idea of

how it works. Is it a concept? Idea? Is it something concrete or abstract? It depends on the


context of the situation. A quick, simple definition of insurance could be as follows:
Reimbursement in a situation of loss. Usually, someone decides that insurance is
needed. In order for the concept of insurance to arise, a pre-payment of some type is
required. In the case of typical, everyday general auto, health and life insurance, for
example, the pre-payment is in the form of a premium. Prior to the eve of the year 2000,
thousands of people flocked to the stores, stocking up on numerous supplies. They feared
that something catastrophic was going to take place once the clock struck midnight, and if
so, they wanted to be prepared. Isnt this a form of insurance? Sure- in its basic definition.
The supplies they purchased would act as reimbursement in the case of loss
Insurance is not necessarily an investment from which one
expects to get one's money back. Nor is it gambling. A
gambler takes risks, while insurance offers protection
against risks that already exist. Insurance is a way to share
risk with others.

The Origins of Insurance:


Early insurance goes back to the
Egyptian times. It was known that around

One of the world's most


famous insurance providers
started in a coffeehouse.

3000 BC, Chinese merchants dispersed


their shipments among several vessels
to avoid the possibility of damage or loss.
There are some insurance companies
around today in the United States
that provided insurance back in the mid
1700s, as well as some that provided
relief to banks during the 1930s and the
Great Depression.

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.

Insurance in India A historical prospective


Insurance business is not new to India. It finds mention in the writings of Manu,
Rishi Yagnavalkya and others, indicating that it has existed in India of ancient times. It
has evolved over time and has drawn heavily from the experience of other countries

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.

Life Insurance Market


Life insurance in existing form came in India from UK in 1818 with Oriental Life
Insurance Company. The Indian life Assurance companies Act, 1912 was the first measure
to regulate life Insurance business. Later in 1928 the Indian Insurance Companies act was
enacted, which was amended in 1938. Finally Government of India amended this act in
1950.
Life Insurance Corporation of India was formed in September 1956 by passing
LIC Act, 1956 in Indian parliament.
The business of life insurance in India in its existing form started in India in the year 1818
with the establishment of the Oriental Life Insurance Company in Kolkota.
Some of the important milestones in the life insurance business in India are:
1912:

The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.


1928:

The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.
1938:

Earlier legislation consolidated and amended to by the Insurance Act with

the objective of protecting the interests of the insuring public.


1956:

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.

Types of Life Insurance:


Permanent Life Insurance:
This is the one that provides for a lifetime of benefits as long as the premiums
are paid as and when they are due. They are beneficial as one can take a loan on the
benefits that can be availed on this type of insurance.
Term Life Insurance:
This provides protection for a preset / limited period of time, and would pay
the death benefit only on death happening within the preset time. It is considered to be
a insurers require the insured to provide proof of their insurability. ICICI Prudential
Lifeguard is a policy especially designed to provide insurance at a low cost.

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.

Advantages / Benefits of Insurance:


Protection:
Life Insurance guarantees full protection against risk of death of the assured. In
case of death, full sum assured is payable, whereas under other savings schemes the total
accumulated savings alone will be available. The later will be considerably less then the
sum assured, if death occurs during early years.
Long term saving:
Life insurance encourages long term saving. By paying a small premium in easy
installments for a long period a handsome saving can be achieved.
Liquidity:
Loan can be obtained against a policy assured whenever required.
Tax Relief.:
Tax relief in income tax and wealth tax can be availed on the premium paid for
Life Insurance. Income tax benefit can be availed to a maximum limit of 31.50%.
Insurance encourages and forces thrift:
A savings deposit can be too easily withdrawn. Many may not be able to resist the
temptation of using the balance for some less worthy purpose. On the other hand, the
payment of life insurance premiums becomes a habit and comes to be viewed with the
same seriousness as the payment of interest on a mortgage, thus insurance in effect brings
about compulsory savings.
Easy settlement and protection against creditor:
Life Insurance can assure name of a person to whom the policy moneys would be
payable in the event of his death. The proceeds of a life insurance policy, a married
womans property act policy constitutes a trust in favor of the wife and /or children and no
separate assignment is necessary. The beneficiaries ate fully oriented from radiators except
to the extent if any interest in the policy by the assured.

Administering the legacy for beneficiaries:


It often happens that a provision, which a husband or father has made through
insurance is quickly lost through speculative or unwise investment or by unnecessary
expenditure on luxuries. These contingencies can be provided against in the case of
insurance. The policyholder can arrange receive, interested of single sum or payment of
the claim amount by smaller monthly installments over the selected period followed by a
lump sum at the end there of.
Ready marketability and suitably for quick borrowings:
After an initial period, of the policyholder finds himself unable to continue
payment of premiums he can surrender the policy for cash the sum. Alternatively, he can
tie over a temporary difficulty by taking a loan on the sole security of the policy without
delay. Further, a life insurance policy without delay. Further, a life insurance policy is
sometime acceptable as security for a commercial loan.

Need for the Insurance:

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.

Statement of the problem


It is always very difficult to make insurance investment decisions in
this world of investment alternative companies.
It demanded investors to be knowledgeable and tact full regarding
the insurance market. Since, many insurance investments are
introduced with in a very short span of time; people even having lot
of money are confused to invest their hard earning money in
effective manner.
This confusion made researcher to choose this particular field study
in this regard an effort is made to put some light on different
investment companies for the sake of bringing

down the confusion level among the investors.

In order to recommend a suitable investment company to an


investor, one must be aware of the needs of the customer and the
importance of his attributes, the current insurance situation and
ascertaining attitude towards risk involved in an investment while
he makes his investment decision.

Keeping in view the above condition, a study titled-A Comparative


Study on Invest Shield Life of ICICI Prudential with other Insurance
Companies. A descriptive study is conducted in ICICI PRUDENTIAL
with OM KOTAK, BIRLA SUNLIFE, and MET LIFE. To analyze these
various investment companies, a comparison had made with life
insurance.

b. Objective of the study


The specific objectives of the present study are as follows:

To study the structure of insurance company and insurance market.

To study the existing business of insurance industry.

To study the investors behavior regarding insurance.

To study the perception level of insurance companies towards customers.

To study the wide spectrum of insurance companies with a single investment


policies.

To evaluate the insurance market under Unit-linked Plan with Capital


Guarantee.

c. Scope of the study


The scope of the study is limited to the city of Bangalore only. The
companies, which issue life insurance, have been considered in the
study. The respondents have been mostly employees from ICICI
PRUDENTIAL, OM KOTAK, BIRLA SUNLIFE, and MET LIFE.
The study is focused on analysis of investments; on a particular life
insurance policy called INVEST SHIELD LIFE (Unit-Linked Plan with
Capital Guarantee) and its out puts in various investment
companies, which are mentioned above.
A comparative analysis is conducted between these companies on a
single & same policy.
The findings will reveal about Insurance investments as a better
option in a better company.

d. Operational definition of the concepts

Premium: The fee paid by the insured to the insurer for assuming the
risk.

Life insurance: Insurance that guarantees a specific sum of money to


a designated beneficiary upon the death of the insured or to the
insured if he or she lives beyond a certain age.

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):

Investments + Current Assets

- Current liabilities and Provisions

Number of units outstanding in the unit fund

e. Methodology of research
I. Type of Research:
The research carried out in this study is descriptive in nature.

II. Sample size:


In addition to ICICI PRUDENTIAL, here other insurance companies
have been chosen for sampling namely OM KOTAK, BIRLA SUNLIFE
and MET LIFE.

INSURANCE

POLICY NAME

COMPANIES
ICICI PRUDENTIAL

Invest shield life

OM KOTAK

Capital Multiplier

BIRLA SUNLIFE

Flexi save plus

MET LIFE

Met smart

III. Tool for data collection:


The study was done based on the collection of Primary & Secondary
data.
Primary Data: Primary data was collected with the use of
questionnaire and personal interaction with the company employees.
Secondary Data: Secondary data was collected by:
Referring several books on insurance issues.
Referring different books and previous project reports in a college
library.
Referring from fact sheets, brochures, journals, reference books, etc.
Referring some of the articles, reports and magazines on insurance.
Visiting libraries.

IV. Method of analysis

An analytical research was carried out first to gain insight and


proper understanding of the life insurance and its different
parameters connected to the unit-linked plan. This was done through
questionnaire and personal interaction with the employees of ICICI
PRUDENTIAL employees and the employees of the other insurance
companies.

This was followed by a comparative study analysis between


the insurance companies. Several graphs and tables were prepared
for a better analization of service provided by them towards a single
Unit-linked plan.

Limitations Of The Study:


Study restricted to Bangalore city only.
Some of the major points of the life insurance policy were not let out.
Free, continuous and reliable information wasnt always available.
Some of the information was confidential. Which do company & its employees only
use. So such informations are not revealed outside for the general public.
The time span for the survey was short and hence only the major aspects are
considered, not all the aspects were considered.
The information provided by the respondents in terms of their income level could
not be accurate as people are not very open when it comes to financial matters.

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

Prudential Group Overview

Founded in 1848 the UKs largest life insurer for over 150 years

251 billion funds under management.

Prudential now has operations in 11 Asian countries

Prudential is the leading life insurance player in Europe.

Prudential is the fastest growing life insurance company in Asia.

Vision
To make ICICI Prudential the dominant Life and Pensions player built on trust by
world-class people and service.

This is aimed to achieve through:

Developing and implementing superior risk management and investment

Understanding the needs of customers and offering them superior products and
service

Leveraging

technology

to

service customers

quickly, efficiently

and

conveniently introducing strategies to offer sustainable and stable returns to our


policyholders

Providing an enabling environment to foster growth and learning for our


employees

And above all, building transparency in all our dealings.


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

we can play a significant role in redefining and reshaping the sector. Given the quality of
our parentage and the commitment of our team, there are no limits to our growth.
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

people and the way we work.


We believe that we are on the threshold of an exciting new opportunity, where we
can play a significant role in redefining and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.

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

Mr. Danny Bardin


Mr. M.P. Modi
Mr.Keki Dadiseth
Mr.
R Narayanan Executive Director.
Mr.N.S.kannan,
Mr.Bhargav Dasagupta, Executive Director.
Ms. Shikha Sharma, Managing Director & CEO.

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

10 regular premium products

6 single premium products

4 health products.

4 Retirement plans

4 riders - Tax benefit (Sec 80D)

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

First Life Insurer to operationally Tie-Up with a Public sector Bank.


ICICI Prudential has 40% of private life insurance marketICICI Prudential Life Insurance has increased its market share among private life

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

Most Trusted Private Life Insurer


The Economic Times - A C Nielsen Survey of Most Trusted Brands 2003, 2004 and 2005

Prudence Customer Centricity Award 2004 & 2005


Prudential Corporation Asia

IMM Award for Excellence


Institute of Marketing & Management

Organization with Innovative HR Practices


Indira Group of Institutes

Super brand 2003-04

Organization with Innovative HR Practices


Asia-Pacific H R Congress Awards for HR Excellence

Silver Effie for Effectiveness of the Retire from Work not life advertising campaign
Effies 2003

Recognitions
IMM Award for Excellence
Institute of Marketing & Management

Organization with Innovative HR Practices


Indira Group of Institutes

Organization with Innovative HR Practices


Asia-Pacific H R Congress Awards for HR Excellence

Unit Values of different Plan options as on 08-05-2007

Protector (Income) Plan*

Unit
Value
(Rs./unit)
15.0842

Balancer (Balanced) Plan*

23.74

Maxi miser (Growth) Plan*

45.77

Pension Maxi miser (Growth) Plan #

45.94

Pension Balancer (Balanced) Plan #

22.31

Pension Protector (Income) Plan #

13.5407

Group Balanced Fund

15.66

Group Debt Fund

12.3785

Group Short Term debt fund

12.3544

Group Growth Fund

20.07

Group Capital Guarantee Short Term Debt Fund

11.7643

Maxi miser (Growth) Fund II ^

24.71

Preserver (Short Term) Fund * ^

11.9356

Balancer (Balanced) Fund II ^

15.33

Protector (Income) Fund II ^

11.2349

Pension Preserver (Short Term) Fund # ~

11.8717

Pension Maxi miser (Growth) Fund II ~

25.78

Pension Protector (Income) Fund II ~

11.2353

Pension Balancer (Balanced) Fund II ~

15.72

Invest Shield Cash ***

11.2508

Invest Shield Life **

13.41

Invest Shield Pension

13.44

ICICI Prudential Life Maxi miser III ^^

11.6

ICICI Prudential Life Balancer III ^^

11.03

Plan

ICICI Prudential Life Protector III ^^

10.6395

ICICI Prudential Life Preserver III ^^

10.8126

*Group Capital Guarantee Debt Fund

10.923

*Group Capital Guarantee Balanced Fund

11.55

Invest Shield Life New Fund ##

11.16

Group Capital Guarantee Growth Fund

10.49

Cash Plus Fund

11.7695

Secure Plus Fund

11.71

Secure Plus Pension Fund

11.459

Flexi Growth *

10.52

Flexi Growth II ^

10.55

Flexi Growth III ^^

10.5

Pension Flexi Growth #

10.57

Pension Flexi Growth II ~

10.5

Flexi Balanced *

10.32

Flexi Balanced II ^

10.38

Flexi Balanced III ^^

10.27

Pension Flexi Balanced #

10.42

Pension Flexi Balanced II ~

10.31

TABLE SHOWING NO OF PRODUCTS AT GLANCE

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

Max Min Max Min Max Max

Save 'N' Protect

60

6,000

50,000 1 Crore 10

Cash Back

16

55

6,000

Smart Kid

1.5

20

60

Smart Kid ULIP


(RP)

1.5

20

Smart Kid ULIP (SP) 1.5

30

18

70

70

AD, AB, CI (A), MS

75,000 1 Crore 15 & 20

70

70

AD, AB, CI (A), MS

8,400

1 Lac 30 Lacs 10

25

70

70

AD / AB / IBR

60

18,000

1,Lac 30 Lacs 10

25

70

70

AD, IBR, WOP

20

50

50,000 2.5 Lac 50 Lacs 10

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

AD, AB, CI(S),MS

Life Time Pension

18

60

10,000

1,00,00
0
50 lacks 10

52

50

70

70

AD, CI(S), MS

Life Link Pension

18

62

25,000

105% Of SA

52

50

70

70

NA

Secure Plus Pension

18

60

No
10,000 50,000 Limit

10

50

75

75

AD, AB, WOP, CI-S,


MS

Secure Plus

60

6,000

10

75

75

AD, AB, MS, FIB, CI


(A), WOP

30,000

30

N.A
Health Assure plus
1.5

18

55

1800

1 lakh 10 lakh 10

30

48

65

65

Here in the above table some points are to be remembered:


1) Non Standard age proof (NSAP) not acceptable for Term, Unit Link and Pension
Products.
2) Unit Linked Plans, Secure Plus, Cash plus not allowed beyond class V.
3) Life Guard Products not allowed beyond class IV.
4) For Unit Link products the life cover exists between 7 to 70 yrs.

Products Launched By ICICI PRUDENTIAL Life


Insurance In Brief
Insurance Solutions for Individuals
ICICI Prudential Life Insurance offers a range of innovative, customer-centric
products that meet the needs of customers at every life stage. Its 19 products can be
enhanced with up to 6 riders, to create a customized solution for each policyholder.

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

Are all investments shield plans,

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.

A market linked an insurance plan that meets your Investment and


Protection needs.
Is a transparent and feature-packed savings plan that offers 3 levels of
protection.

Is a transparent, feature-packed savings plan that offers 3 levels of protection


as well as liquidity options.
Is a traditional endowment savings plan that offers life protection along
with adequate returns.
Is an anticipated endowment policy ideal for meeting milestone expenses like a
childs marriage, expenses for a childs higher education or purchase of an asset.

Protection Solutions

Lifeguard is a protection plan, which offers life covers at very low cost. It is available in
3 options

Level term assurance with level return of premium,

Level of assurance without level return of premium along with two riders
ADBR and WOP

Level term assurance - single premium.

Child Plans

The plans provide guaranteed educational benefits to a child along


with life insurance cover for the parent who purchases the policy. The policy is designed
to provide money at important milestones in the childs life. Smart Kid plans are also
available in unit-linked form - both single premium and regular premium.

As a responsible parent, you will always strive to ensure a hassle-free,


successful life for your child. However, life is full of uncertainties and even
the best-laid plans can go wrong. Heres how you can give your child a 100%
safe and assured tomorrow, whatever the uncertainties. Smart Kid is
especially designed to provide flexibility and safeguard your childs future
education and lifestyle, taking all possibilities into account. Choose from
amongst a basket of 2 plans:

Smart Kid unit-linked regular premium

Smart Kid regular premium

All these plans offer you:


1. Financial Benefits: Regular payments at critical stages in your childs life, like Board
examinations, Graduation and Post-graduation.

2. Total peace of mind, even if you are not around


3. Sum Assured is paid immediately: Ensures that your loved ones stay financially
secure, even in your absence.
4. All future premiums are waived: Ensuring that your family is not financially
burdened in your absence.

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.

is a limited premium paying plan that offers customers life insurance


cover till the age of 75.
Retirement Solutions:

Is a retirement product targeted at individuals in there thirties.


Is a flexible pension plan that allows one to select between 3 levels
of cover.

Market-linked retirement products:


Is a regular premium market-linked pension plan.
Is a single premium market-linked pension plan.
ICICI Prudential also launched ''Salaam Zindagi'', a social sector group insurance
policy targeted at the economically underprivileged sections of the society.
Group Insurance Solutions:

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:

Low and Affordable Premiums

Life Cover

Savings Option

Hassle free procedure

ICICI Prudential offers 2 specially designed rural plans

ICICI Pru Mitra Endowment Plan

ICICI Pru Mitra Endowment Plan

ICICI Pru Mitr offers the following features:

Life Cover and Savings

Regular Premiums

Age at entry: 18 - 45 Yrs

Sum Assured: Rs.5, 000 -20,000

Premium / Year: Rs. 507 - 553 (SA: Rs.10, 000)

Maturity/Death benefit: Sum Assured

ICICI Pru Suraksha - Regular Premium:

ICICI Pru Suraksha is a regular premium policy with the following features:

Individual policy

Only Life cover

Term - 3 & 5 Yrs

Age independent premium

Age at entry: 18 - 45 Yrs

Sum Assured: Single

Premium / Year: Rs 50 200

Maturity/Death benefit: Rs.5, 000 - 20,000

Death Benefit: Sum Assured

Being away from India doesn't mean you


NRI plans:
have to compromise the safety and
security of your loved ones. In fact, your
savings from your time overseas can be
easily canalized to meet your family's
needs - now and in the future. So,
whether its your dream to retire in your
hometown; to secure funds for your
children's education; or to build assets,
ICICI Prudential has a range of solutions
that can be customized to meet your
needs.

(a). Investment Plans

(c). Retirement Plans

(b). Savings Plans

(d). Child Plans

Keyman insurance plans:


A Keyman is an individual who directly affects the profitability and the continuity
of a business and whose absence may have an adverse effect on the health and continuity
of the business. Keyman insurance is a life insurance policy taken by the company on the
life of such a key person.
The objective of the keyman insurance is to provide the company with money so
that the financial losses to the company can be protected, in absence of the keyman. The
aim is to indemnify the company of these losses and to allow business continuity.
All premiums paid for securing a keyman life insurance policy are treated as
business expenditure u/s 37 (1).
LifeTime II, SecurePlus, Save'n'Protect, Lifeguard and Premier Life plans are
available for the purpose of keyman insurance.

Flexible Rider Options:


Riders
Critical Illness Benefit Rider
This rider provides protection against 9
critical illnesses, namely: Major organ
transplants,

complete

renal

failure,

Stroke, Paralysis, Heart attack, Valve


replacement surgery, Major surgery of
the aorta, CAGS (Bypass) and Cancer.

Benefits paid on contracting the illness


Accelerated benefits (available with save n protect and Cash back): If the
policyholder is diagnosed with any of the specified illnesses, then the policyholder is paid
the entire sum assured under the rider. The policy along with all the riders (to the extent
of the Rider Sum Assured) is then terminated. However, the remainder of the base policy
continues till the end of the term. The policyholder will have to continue paying his
premiums

for

the

remainder

of

the

policy.

Accelerated benefits (available with SecurePlus, CashPlus and SecurePlus Pension):


If the policyholder is diagnosed with any of the specified illnesses, then the policyholder
is paid the entire sum assured under the rider. The life cover along with all the riders is
then terminated. However, the policy value accumulation continues till the end of the
term or death, whichever is earlier.
Standalone benefits (available with Premier Life, LifeTime, LifeTime II, Forever
Life, Group Term Plan, InvestShield Life, InvestShield Cash and InvestShield Gold)
: If the policyholder is diagnosed with any of the specified illnesses, he/she is paid the
rider Sum Assured and the rider terminates. However, the base policy continues till
maturity.
Premiums paid under this rider are eligible for tax benefits under Section 80D.

Major Surgical Assistance Rider


This rider provides assistance to the policyholder against 43 surgical procedures.
These surgical procedures are divided into 3 categories and the extent of assistance
provided depends on the type of procedure.

Major procedures 50% of the rider sum assured is paid.

Intermediate procedures 30% of the rider sum assured is paid

Minor procedures 20% of the rider sum assured is paid

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.

Benefits payable in case of permanent disability due to an accident


If the policyholder survives an accident but becomes permanently disabled then
the premium for the basic plan is completely waived off to the extent of the rider
sum assured.

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

ANALYSIS AND INTERPRETATION OF DATA.


Minimum and Maximum Age of Investor
Table 6.1
Different Company
Minimum-Maximum age
ICICI-Invest shield life.
Om Kotak- Capital multiplier

0-55
18-65

BirlaSunlife-Flexi save Plus


MetLife-Met smart

.30-65
15-70

Table showing Minimum and Maximum Age of Investor

no of years

Chart showing investment age


80
70
60
50
40
30
20
10
0

65

70

65

55

18
0
Icici

om kotak

15
0.3
Birla

Metlife

insurance companies
Minimum age

Maximum age

Graph 6.1

Graph showing Minimum and Maximum Age of


Investor

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.

Minimum and Maximum term for Investment


Table 6.2
Different Company
Minimum-Maximum term
ICICI-Invest shield life.
Om Kotak- Capital multiplier

10-30
5-30

BirlaSunlife-Flexi save Plus


MetLife-Met smart

5-30
10-20

Table showing Minimum and Maximum term for Investment

Graph 6.2

No of years

chart showing the terms of


invesment
40
30
20
10
0

30
10
Icici

30
5
Om kotak

30
20
10

5
Birla

Metlife

Insurance companies
Minimum years

Maximum years

Graph showing Minimum and Maximum term for Investment

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:

From the above graph it shows that in OM KOTAK and


BIRLA SUN LIFE the terms starts from 5 years, which is more
flexible for investment comparison with ICICI and MET LIFE,
which starts from 10 years.

Sum assured by the insurance companies


Table 6.3
Different Company
ICICI-Invest shield life.
Om Kotak- Capital multiplier
BirlaSunlife-Flexi save Plus
MetLife-Met smart

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

Table showing the sum assured by the insurance companies


Analysis:

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.

The maturity benefit to investors


Table 6.4
Different Company
ICICI-Invest shield life.
Om Kotak- Capital multiplier
BirlaSunlife-Flexi save Plus
MetLife-Met smart

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

Table showing the maturity benefit to investors


Analysis:
From the above table we can know that the maturity benefit in ICICI is based on
the guaranteed value of unit fund. In OMKOTAK the maturity depends on the value of
accumulation account. In BIRLA SUNLIFE & MET LIFE the maturity is purely based
on the policy fund.

Inference:

From the above table it shows clearly that maturity benefit is worthwhile in ICICI
when compared to other insurance companies.

The Death benefit to investors


Table 6.5
Different Company
ICICI-Invest shield life.
Om Kotak- Capital multiplier
BirlaSunlife-Flexi save Plus

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

Table showing the Death benefit to investors


Analysis:
From the above table the death benefit in MET LIFE is up to 99 years which is
extremely beneficial when compared to ICICI where the death benefit is sum assured +
unit fund. In OM KOTAK it is sum assured premium due. And in BIRLA SUNLIFE it
is face amount + policy fund.

Inference:
From the above table it shows clearly that the death benefit in MET LIFE is much
more beneficial than other insurance companies.

The Withdrawal benefit to investors


Table 6.6
Different Company
ICICI-Invest shield life.
Om Kotak- Capital
multiplier
BirlaSunlife-Flexi save Plus

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.

Table showing the Withdrawal benefit to investors


Analysis:
From the above table it is clear that the withdrawal benefit in ICICI is non. In OM
KOTAK it is partial or complete withdrawal after 3 rd year in BIRLA SUNLIFE the
withdrawal benefit is available after 3rd year and in a year two withdrawals are free of
charges. While in MET LIFE is after 1 year & first two partial withdrawals are free.

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

The Contribution by investors


Table 6.7
Different Company

Contribution

ICICI-Invest shield life.


Om Kotak- Capital multiplier

Minimum: Rs. 8,000 p.a.


Minimum: Rs. 10,000 p.a.

BirlaSunlife-Flexi save Plus


MetLife-Met smart

Subject to a minimum face amount of Rs 50,000 for


minors and Rs 75,000 for adults
Minimum: Rs 20,970 p.a

Table showing the Contribution by investors


Graph 6.3
Contribution

8000

20970

10000

ICICI
OM KOTAK
Birla SunLife
MetLife

50000

Graph showing the Contribution by investors

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.

The Extended life coverage to investors


Table 6.8
Different Company
ICICI-Invest shield life.
Om Kotak- Capital multiplier
BirlaSunlife-Flexi save Plus
MetLife-Met smart

Extended life coverage


Provided the policy is in force till maturity,
additional coverage for 50% of the sum assured will
be available for the next 10 years.
Not available
Not available
Provided the policy is in force till maturity.
Additional coverage till 99years of the policyholder.

Table showing the extended life coverage to investors


Analysis:
From the above table we can know that the extended life coverage of provided in
ICICI, which is when the policy is, matured the additional coverage for 50% of sum for
the next 10 years. In METLIFE if the policy is forced to maturity the additional coverage
is provided till 99 years of investors. In OM KOTAK and BIRLA SUNLIFE there are no
such provisions.

Inference:
From the above table, the extended life coverage in MetLife is most beneficial
compared to ICICI.

Flexibility to increase or decrease the contribution by investors


Table 6.9
Different Company
ICICI-Invest shield life.

Om Kotak- Capital multiplier


BirlaSunlife-Flexi save Plus
MetLife-Met smart

Increase / decrease contribution


The maximum decrease in the premiums can be
up to 20% of the initial premium chosen by the
policyholder at the time of inception of the policy.
However, in no circumstances can the premium
be reduced to below Rs. 8,000 or 80% of the
initial chosen premium, whichever is higher.
However, there is no cap on increasing the
premium. The premiums can be increased with
or without the increase in sum assured.

Not available
Not available
Not limited

Table showing the Flexibility to increase or decrease the


contribution by investors
Analysis:
From the above table, the flexibility to increase or decrease the investors
contribution, in METLIFE is restricted while in ICICI it can be decreased to 20% or up to
80% and increased in premium is not an issue. OM KOTAK and BIRLA SUNLIFE do
not provide such facilities.

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.

The Investment options to investors


Table 6.10
Different Company
ICICI-Invest shield life.
Om Kotak- Capital multiplier

BirlaSunlife-Flexi save Plus


MetLife-Met smart

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

Table showing the Investment options to investors


Graph 6.4

Investment options

3
6

ICICI
OM KOTAK
BIRLA SUNLIFE
METLIFE

Graph showing the Investment options to investors

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.

The Surrender value


Table 6.11
Different
Company
ICICI-Invest
shield life.

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%.

After 3 years 20%.


After 4 years 30%.
After 5 years 40%.
After 6 years 50%.
After 7 years 60%.
After 8 years 70%.
After 9 years 80%.
After 10 years 90%.
After 11 years & there after 95%

Table showing the Surrender value

Graph 6.5
SURRENDER VALUE

1
3

ICICI
OM KOTAK
BIRLA SUNLIFE
MET LIFE

Graph showing the Surrender value


Analysis:
From the above table, we can know that the surrender value in ICICI starts from
1st year. In OM KOTAK it starts from 3rd year. In BIRLA SUNLIFE it starts from 2 nd year
while in METLIFE it starts from 3rd year.

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.

Automatic Premium payment to investors


Table 6.12
Different Company
ICICI-Invest shield life.
Om Kotak- Capital multiplier
BirlaSunlife-Flexi save Plus
MetLife-Met smart

Automatic Premium payment


If the term if the policy is less than 15 years, then
this facility can be availed once and twice if the term
is greater than or equal to 15 years.
Not available
Not available
Initial 3 years as per schedule should be paid & then
u can avail this option

Table showing the Automatic Premium payment to investors


Analysis:

From the above table, we can know the automatic premium


payment in ICICI is less than 15 years policy and facility can be
available 1 and twice. While in METLIFE initial 3 years of
premium should be paid and then investors have the facility of not
paying for nominal of 2 to 3 years. In OM KOTAK and BIRLA
SUNLIFE there is no such facility provided.
Inference:
From the above table, the automatic premium payment in METLIFE is
beneficiary to the investors compared to ICICI, because investor has the option of
stopping the premium for a certain period of time.

Increase / decrease of death benefit to investors


Table 6.13
Different Company

Increase / decrease of death benefit

ICICI-Invest shield life.


Om Kotak- Capital multiplier

Not available
Not available

BirlaSunlife-Flexi save Plus

Can be done once in every 5 years. The minimum


amount of charge will be Rs. 50,000. This charges
will result in a change in the premiums to be paid
and will be subjected to the permissible limits of
minimums face amount
After the first three policy years, have a benefit for
once a year.

MetLife-Met smart

Table showing the Increase / decrease of death benefit to investors

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.

Additional credits to investors


Table 6.14

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.

ICICI-Invest shield life.

Om Kotak- Capital multiplier

Not available

BirlaSunlife-Flexi save Plus


MetLife-Met smart

Not available
Not available

Table showing the Additional credits to investors


Graph 6.6
5
5
4
3
2
1
0

0
ICICI

OM KOTAK

0
BIRLA
SUNLIFE

0
METLIFE

Companies
additonal
credits

Graph showing the Additional credits to investors


Analysis:
From the above table, we can know that, the additional credit given by the ICICI
starts from 5th year and ends at 30th year while in other companies such facilities are not
provided.

Inference:

From the above graph, we can know that additional credits are only given in
ICICI but not in other insurance companies.

Flexibility of Top-up to investors


Table 6.15
Different Company

Top-up

ICICI-Invest shield life.


Om Kotak- Capital multiplier

Available, with a minimum top-up of Rs. 5,000

BirlaSunlife-Flexi save Plus


MetLife-Met smart

Not available
Dump in premium are available up to 25,000

Available

Table showing the flexibility of Top-up to investors

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.

Flexibility of Switch to investors


Table 6.16
Different Company
ICICI-Invest shield life.
Om Kotak- Capital multiplier
BirlaSunlife-Flexi save Plus
MetLife-Met smart

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.

Table showing the flexibility of Switch to investors

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.

Initial charge to the investors


Table 6.17
Different Company
ICICI-Invest shield life.

Om Kotak- Capital multiplier


BirlaSunlife-Flexi save Plus

MetLife-Met smart

Initial charge
st

<15,000-1 year; 70%; 2nd year; 90%; 3rd year


onwards 97%
15,000-24,999- 1st year; 72%; 2nd year; 92%; 3rd year
on wards 97%
25,000-49,999-1st year; 75%; 2nd year; 92%; 3rd year
on wards: 97%
>= 50,000-1st year; 77%; 2nd year 92%; 3rd year on
words 97%

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

Table showing the Initial charge to the investors

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.

Showing Admin charge to the investors


Table 6.18
Different Company

Admin charge

ICICI-Invest shield life.


Om Kotak- Capital multiplier

Admin charge of Rs 50/month

BirlaSunlife-Flexi save Plus


MetLife-Met smart

Policy admin fees= Rs. 22 per month.


Base premium 7.0% + dump in premium 3.5%

Not disclosed

Table showing the Admin charge to the investors


Analysis:
From the above table, we can know that the admin charges, in ICICI are Rs. 50
per month. In OM KOTAK not disclosed. In BIRLA SUNLIFE Rs. 22 per month. In
METLIFE base premium 7% + dump in premium 3.5%.

Inference:
From the above table, we can know that the admin charge varies form company to
company according to their internal rules.

Fund management charge to the investors


Table 6.19
Different Company
ICICI-Invest shield life.

Fund management charge

Om Kotak- Capital multiplier

Regular management charge of 1.25% p.a. on the


fund value
Not disclosed

BirlaSunlife-Flexi save Plus


MetLife-Met smart

Investment mgmt fee = 1% p.a.


Maximum of 2.5% p.a

Table showing the Fund management charge to the investors

2.5
2
1.5
1
0.5

ICICI-Invest shield life


Om Kotak- Capital
multiplier
BirlaSunlife-Flexi save
Plus
MetLife-Met smart

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.

Riders benefit to the investors


Table 6.20

Different Company

Riders

ICICI-Invest shield life.


Om Kotak- Capital multiplier

ADBR, WOPR& CIBR


Term Rider / CI / ADBR

BirlaSunlife-Flexi save Plus


MetLife-Met smart

ADBR, CIBR, Term


Not available

Table showing the Riders benefit to the investors

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.

FROM ALL THE ABOVE DATA & INTERPRETATION A


SUMMARIZED TABLE IS AS BELOW
The best insurance company in the unit-linked plan
Table 6.21
FEATURES /
INSURANCE

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)

Table showing the best insurance company in the unit-linked plan

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

Conclusion for the above graph considering the summarized


table
Out of 20 features taken for comparison;
ICICI has gained 8 points,
OM KOTAK has gained 4 points,
BIRLA SUNLIFE has gained 7 points &
MET LIFE has gained 10 points.
Considering the above points gained by this insurance companies it has
been ranked as under,

Ranks
1
2
3
4

Insurance companies with name of the policy


ICICI PRUDENTIAL Invest Shield Life
MET LIFE Met Smart
BIRLA SUNLIFE Flexi Save Plus
OM KOTAK Capital Multiplier

CHAPTER: 5

SUMMARY OF FINDINGS, CONCLUSION AND


RECOMMENDATIONS
FINDINGS:
ICICI gives more opportunity to the investors in Age factor as it starts from the
birth of the child.

The Term for investment in MET LIFE starts from 10-20,


which is not as flexible as other insurance companies.
The Sum assured in BIRLA SUNLIFE s of minimum-50, 000 for minors &
75,000 for majors which is much more higher than others.
In ICICI the Maturity benefit is advantageous when compared to OM KOTAK,
BIRLA SUNLIFE & MET LIFE.
The Death benefit in MET LIFE s beneficial as it covers up to the age of 100.
In ICICI there is no withdrawal benefit when compared to others.
The Contribution in ICICI is Rs 8000 p.a., which is affordable by all type of
insurance investors.
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.
Investors have a best option to invest as much as six (options) in MET LIFE.
The Surrender value in ICICI has a greater value as it starts after 1 st year, which is
10%.
The Automatic premium payment in MET LIFE has got the option to investors to
stop the premium for a certain period of time.
The flexibility to Increase / Decrease the death benefit in MET LIFE is most
beneficial.

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.

Investors are enjoying the cheap loans provided by the banks


which shows that there will further activity down the line.
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. By entry of private insurance players in the market,
there are new products, which also take care of your investments.
Long-term policies are better than medium term and short-term
policies for better future arrangements. Private life insurances are
doing well in Indian market by providing innovative products and
better services to the customers. People mostly go for childs plan
to meet the future need of their children.
The company believes that the corporate plans formulated in response to its
anxiety for systematic long range planning, will serve as a vital and dynamics document
which guide the company in the year that die a head. It is reasonably certain that some of

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

Has no dependent, has

Life

insurance

Buy only if you

Adult

taken car / bike loan,

needs

low

invertible surplus low.

accumulated
growth,
taking

Young

30s

Family

as

Family

riskis

Children and spouse

high at this stage.


Shouldve

Subtract

may be dependent has

adequate

life

existing

taken home loan, starts

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

should clear debts

balance

rapid, income peaking,

& start dehiscing

shorter existing

invertible surplus high.

investment

assets.

portfolio

the

by

deploying funds in

Empty

50s

are

safer instruments.
Divert new surplus

Covers as long

home

to paid retirement

as

loan repaid, no other

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

replace work related

cash

flows from

needed.

expenses;

safe

investments,

retirement

creating

Your

regular cash flows &

invest surplus in

corpus

beating inflation are

instruments

that

now fund your

top priority.

comfortable

bat

inflation to prevent
erosion

of

retirement capital.

needs.

should

For The Further Research


Indian Financial System is the biggest in the world. In post LPG
period, the scenario is quit complex and challenging. Every sunrise
is seeing the rise of new financial products along with new
investment strategies and evaluation of those strategies. So, it gives
fabulous opportunities for further research in following areas.
Research can be held on
The Impact of privatization of Indian Financial System.
Comparative analysis of different market products and funds.
By taking any one type of financial instruments.
On building the portfolio of the investor.
Recently introduced products in the market.

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.

I, Mr.Iranna Shivalingappa, Final Semester under


Bangalore University, and doing my project in Comparative
Study on Invest shield life with special reference to ICICI
Prudentials with other companies. I will be very much
thankful if you spare few moments of your precious time with
me to give the answer of following questions, which will be of
great help to me.
1. What is the name of the policy, which has features like Unit-linked plan?
2. What should be the minimum & maximum Age of the policy in this policy?
3. What are the minimum & maximum Terms of this policy?
4. What is the actual Sum assured amount in this policy?
5. What are the facilities of Maturity benefit availed in this policy?
6. What is the facility of Death benefit available in this policy?
7. Do you have any Withdrawal benefit in this policy?
Yes

No

If yes
How & when it will be available to policyholder?
8. What is the minimum Contribution of premium paid in this policy?

9. Do you have any additional benefit like Extended life


coverage in this policy?
Yes

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?

12. Do you have the facility of terminating this policy before


the end of the term
closing (Surrender value)?
Yes

No

If yes

What are its schedules & from when it is valued?


13. Do you allow your policyholder to take a break from
premium payment (Automatic premium payment)?
Yes

No

If yes

When & how term works?


14. Is there any flexibility to Increase / Decrease death benefit
option?
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?

16. Do you allow the surplus funds to invest as a Top-up?


Yes

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?