INTRODUCTION TO LIFE INSURANCE

DEFINITION

Definition of life Insurance: ‘Life insurance is a contract between two parties

whereby one party agrees to pay to the other party, a certain amount of
money as premium to make good the loss of life arising out of an uncertain
event of death in which the insured has interest.‘

BASICS OF LIFE INSURANCE

What Is Life Insurance?

Life insurance offers a way to replace the loss of income that occurs when
someone dies (usually the person who produces the majority of income in a
family situation). It is a contract between you as the insured person and the
company or "carrier" that is providing the insurance. If you die while the
contract is in force, the insurance company pays a specified sum of money
free of income tax — "cash benefits" — to the person or persons you name as
beneficiaries.

A good life insurance program does more than just replace the loss of income
that occurs if you die. It should also provide money to cover the new costs
that arise after your death —funeral expenses, taxes, probate costs, the need
for housekeepers and child care, and so on. And these cash benefits should
provide for your family's future needs as well, including college education for
your children and part or all of your spouse's retirement needs. In almost all
cases, your beneficiary can use the cash benefits in the way he or she sees
fit, without restriction.

Some types of life insurance — permanent life insurance policies — have a

cash value that you can obtain by cashing out the policy or by borrowing
against it. Though it can seem attractive, most financial experts agree that this
feature should be seen as a secondary purpose of life insurance. Another

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type of insurance is term life insurance policies are available as well. To learn
more click the respected link.

Do You Really Need Life Insurance?

If there is someone who would suffer economic hardship if you died, then the
answer is yes... you need life insurance! Families with young children have a
clear need for life insurance. If both spouses work, the loss of one income will
cause the family immediate economic hardship and make it harder for them to
realize future goals, such as paying for the children's' education. But even if
one spouse works "inside the home" and doesn't bring in a formal income, his
or her death will require the surviving spouse to hire child care, housekeepers
and other professionals to help run the household - and that can be a
significant new expense.

If you are married without children or single, then you may need life insurance
to protect your partner or surviving family members against the costs
associated with your death. Funeral expenses, probate and administrative
fees, outstanding debts, special obligations to charities, and federal and state
taxes are costs that all of us must consider. And, they can add up quickly.
Unless you already have sufficient financial resources, your survivors will
probably need life insurance to cover these expenses.

What Happens To Your Family If You Don't Have Enough Coverage?

Under any circumstances, the loss of a loved one is a traumatic experience.
But, if your family is also left without sufficient money to meet basic living
needs or prepare for future goals, they will have to cope with a financial crisis
at the same time. Depending upon their current financial resources and ability
to "get back on their feet" emotionally and financially, your family might be
forced to move to a less desirable home or community, abandon education
and career plans, reorder family priorities (such as the amount of time spent
with the children) and, in general, cut back on the quality of life you have
worked hard to achieve.

Your family might even be forced to go into debt simply to pay the expenses,
like funeral costs, taxes, and medical bills, that result from your death. A

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moment's reflection will tell you that the lack of sufficient life insurance
coverage when a loved one dies can have devastating consequences for a
family...consequences that can last for years.

HISTORY OF LIFE INSURANCE

The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves
against loss and disaster existed in primitive men also. They too sought to
avert the evil consequences of fire and flood and loss of life and were willing
to make some sort of sacrifice in order to achieve security. Though the
concept of insurance is largely a development of the recent past, particularly
after the industrial era – past few centuries – yet its beginnings date back
almost 6000 years.

Life Insurance in its modern form came to India from England in the year
1818. Oriental Life Insurance Company started by Europeans in Calcutta
was the first life insurance company on Indian Soil. All the insurance
companies established during that period were brought up with the purpose
of looking after the needs of European community and Indian natives were
not being insured by these companies. However, later with the efforts of
eminent people like Babu Muttylal Seal, the foreign life insurance companies
started insuring Indian lives. But Indian lives were being treated as sub-
standard lives and heavy extra premiums were being charged on them.
Bombay Mutual Life Assurance Society heralded the birth of first Indian life
insurance company in the year 1870, and covered Indian lives at normal
rates. Starting as Indian enterprise with highly patriotic motives, insurance
companies came into existence to carry the message of insurance and
social security through insurance to various sectors of society. Bharat
Insurance Company (1896) was also one of such companies inspired by
nationalism. The Swadeshi movement of 1905-1907 gave rise to more

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insurance companies. The United India in Madras, National Indian and
National Insurance in Calcutta and the Co-operative Assurance at Lahore
were established in 1906. In 1907, Hindustan Co-operative Insurance
Company took its birth in one of the rooms of the Jorasanko, house of the
great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General
Assurance and Swadeshi Life (later Bombay Life) were some of the
companies established during the same period. Prior to 1912 India had no
legislation to regulate insurance business. In the year 1912, the Life
Insurance Companies Act, and the Provident Fund Act were passed. The
Life Insurance Companies Act, 1912 made it necessary that the premium
rate tables and periodical valuations of companies should be certified by an
actuary. But the Act discriminated between foreign and Indian companies on
many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore,
it rose to 176 companies with total business-in-force as Rs.298 crore in
1938. During the mushrooming of insurance companies many financially
unsound concerns were also floated which failed miserably. The Insurance
Act 1938 was the first legislation governing not only life insurance but also
non-life insurance to provide strict state control over insurance business.
The demand for nationalization of life insurance industry was made
repeatedly in the past but it gathered momentum in 1944 when a bill to
amend the Life Insurance Act 1938 was introduced in the Legislative
Assembly. However, it was much later on the 19th of January, 1956, that life
insurance in India was nationalized. About 154 Indian insurance companies,
16 non-Indian companies and 75 provident were operating in India at the
time of nationalization. Nationalization was accomplished in two stages;
initially the management of the companies was taken over by means of an
Ordinance, and later, the ownership too by means of a comprehensive bill.
The Parliament of India passed the Life Insurance Corporation Act on the
19th of June 1956, and the Life Insurance Corporation of India was created
on 1st September, 1956, with the objective of spreading life insurance much

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more widely and in particular to the rural areas with a view to reach all
insurable persons in the country, providing them adequate financial cover at
a reasonable cost.

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INDIA INSURANCE POLICY

Insurance Policy India provides the clients with the details required for the
coverage’s in the policy, date of commencement of the policy and their
adopting organizations. It plays an important role in the Indian insurance
sector.

The Insurance Policy India is regulated by certain acts like the

Insurance Act (1938), the Life Insurance Corporation Act (1956),
General Insurance Business (Nationalization) Act (1972), Insurance
Regulatory and Development Authority (IRDA) Act (1999). The insurance
policy determines the covers against risks, sometime opens investment
options with insurance companies setting high returns and also informs about
the tax benefits like the LIC in India. There are two types of insurance covers:

1. Life insurance

2. General insurance

Life insurance – this sector deals with the risks and the accidents affecting the
life of the customer. Alongside, this insurance policy also offers tax planning
and investment returns. There are various types of life Insurance Policy India:

a. Endowment Policy

b. Whole Life Policy

c. Term Life Policy

d. Money-back Policy

e. Joint Life Policy

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f. Group Insurance Policy

g. Loan Cover Term Assurance Policy

h. Pension Plan or Annuities

i. Unit Linked Insurance Plan

General Insurance – this sector covers almost everything related to property,

vehicle, cash, household goods, health and also one's liability towards others.

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TYPES OF LIFE INSURANCE

• Term Insurance Policy

• Whole Life Policy
• Endowment Policy
• Money Back Policy
• Annuities and Pension

Most of the products offered by Indian life insurers are developed and
structured around these "basic" policies and are usually an extension or a
combination of these policies. So, what are these policies and how do they
differ from each other.

Life insurance may be divided into two basic classes – temporary and
permanent or following subclasses - term, universal, whole life and
endowment life insurance.

Term Insurance

Term assurance provides life insurance coverage for a specified term of years
in exchange for a specified premium. The policy does not accumulate cash
value. Term is generally considered "pure" insurance, where the premium
buys protection in the event of death and nothing else.

Various insurance companies sell term insurance with many different

combinations of these three parameters. The face amount can remain
constant or decline. The term can be for one or more years. The premium can
remain level or increase. Common types of term insurance include Level,
Annual Renewable and Mortgage insurance.

Level Term policy has the premium fixed for a period of time longer than a
year. These terms are commonly 5, 10, 15, 20, 25, 30 and even 35 years.
Level term is often used for long term planning and asset management
because premiums remain consistent year to year and can be budgeted long
term. At the end of the term, some policies contain a renewal or conversion

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option. Guaranteed Renewal, the insurance company guarantees it will issue
a policy of equal or lesser amount without regard to the insurability of the
insured and with a premium set for the insured's age at that time. Some
companies however do not guarantee renewal, and require proof of
insurability to mitigate their risk and decline renewing higher risk clients (for
instance those that may be terminal). Renewal that requires proof of
insurability often includes a conversion options that allows the insured to
convert the term program to a permanent one that the insurance company
makes available. This can force clients into a more expensive permanent
program because of anti selection if they need to continue coverage. Renewal
and conversion options can be very important when selecting a program.

Annual renewable term is a one year policy but the insurance company
guarantees it will issue a policy of equal or lesser amount without regard to
the insurability of the insured and with a premium set for the insured's age at
that time.

Another common type of term insurance is mortgage insurance, which is

usually a level premium, declining face value policy. The face amount is
intended to equal the amount of the mortgage on the policy owner’s residence
so the mortgage will be paid if the insured dies.

A policy holder insures his life for a specified term. If he dies before that
specified term is up (with the exception of suicide see below), his estate or
named beneficiary receives a payout. If he does not die before the term is up,
he receives nothing. However, in some European countries (notably Serbia),
insurance policy is such that the policy holder receives the amount he has
insured himself to, or the amount he has paid to the insurance company in the
past years. Suicide used to be excluded from ALL insurance policies[when?],
however, after a number of court judgments against the industry, payouts do
occur on death by suicide (presumably except for in the unlikely case that it
can be shown that the suicide was just to benefit from the policy). Generally, if
an insured person commits suicide within the first two policy years, the insurer
will return the premiums paid. However, a death benefit will usually be paid if
the suicide occurs after the two year period.

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Permanent Life Insurance

Permanent life insurance is life insurance that remains in force (in-line) until
the policy matures (pays out), unless the owner fails to pay the premium when
due (the policy expires OR policies lapse). The policy cannot be canceled by
the insurer for any reason except fraud in the application, and that
cancellation must occur within a period of time defined by law (usually two
years). Permanent insurance builds a cash value that reduces the amount at
risk to the insurance company and thus the insurance expense over time. This
means that a policy with a million dollar face value can be relatively expensive
to a 70 year old. The owner can access the money in the cash value by
withdrawing money, borrowing the cash value, or surrendering the policy and
receiving the surrender value.

The four basic types of permanent insurance are whole life, universal
life, limited pay and endowment.

Whole life coverage

Whole life insurance provides for a level premium, and a cash value table
included in the policy guaranteed by the company. The primary advantages of
whole life are guaranteed death benefits, guaranteed cash values, fixed and
known annual premiums, and mortality and expense charges will not reduce
the cash value shown in the policy. The primary disadvantages of whole life
are premium inflexibility, and the internal rate of return in the policy may not
be competitive with other savings alternatives. Also, the cash values are
generally kept by the insurance company at the time of death, the death
benefit only to the beneficiaries. Riders are available that can allow one to
increase the death benefit by paying additional premium. The death benefit
can also be increased through the use of policy dividends. Dividends cannot
be guaranteed and may be higher or lower than historical rates over time.
Premiums are much higher than term insurance in the short-term, but
cumulative premiums are roughly equal if policies are kept in force until
average life expectancy.

Cash value can be accessed at any time through policy "loans" and are
received "income-tax free". Since these loans decrease the death benefit if

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not paid back, payback is optional. Cash values support the death benefit so
only the death benefit is paid out.

Dividends can be utilized in many ways. First, if Paid up additions is elected,

dividend cash values will purchase additional death benefit which will increase
the death benefit of the policy to the named beneficiary. Another alternative is
to opt in for 'reduced premiums' on some policies. This reduces the owed
premiums by the unguaranteed dividends amount. A third option allows the
owner to take the dividends as they are paid out. (Although some policies
provide other/different/less options than these - it depends on the company for
some cases)

Universal life coverage

Universal life insurance (UL) is a relatively new insurance product intended to

provide permanent insurance coverage with greater flexibility in premium
payment and the potential for a higher internal rate of return. There are
several types of universal life insurance policies which include "interest
sensitive" (also known as "traditional fixed universal life insurance"), variable
universal life insurance, and equity indexed universal life insurance.

A universal life insurance policy includes a cash account but the cash
decreases over time. Premiums increase the cash account, but, the cost of
interest increases each year so the cash deteriorates over time. Interest is
paid within the policy (credited) on the account at a rate specified by the
company, but then mortality charges and administrative costs are then
charged against (reduce) the cash account. The surrender value of the policy
is the amount remaining in the cash account less applicable surrender
charges, if any. Universal Life does not work in a recession or low interest rate
environment.

With all life insurance, there are basically two functions that make it work.
There's a mortality function and a cash function. The mortality function would
be the classical notion of pooling risk where the premiums paid by everybody
else would cover the death benefit for the one or two who will die for a given
period of time. The cash function inherent in all life insurance says that if a

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person is to reach age 95 to 100 (the age varies depending on state and
company), then the policy matures and endows the face value of the policy.

Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of

them live to age 95, then the mortality function alone will not be able to cover
the cash function. So in order to cover the cash function, a minimum rate of
investment return on the premiums will be required in the event that a policy
matures.

Universal life insurance addresses the perceived disadvantages of whole life.

Premiums are flexible. Depending on how interest is credited, the internal rate
of return can be higher because it moves with prevailing interest rates
(interest-sensitive) or the financial markets (Equity Indexed Universal Life and
Variable Universal Life). Mortality costs and administrative charges are
known. And cash value may be considered more easily attainable because
the owner can discontinue premiums if the cash value allows it. And universal
life has a more flexible death benefit because the owner can select one of two
death benefit options, Option A and Option B.

Option A pays the face amount at death as it's designed to have the cash
value equal the death benefit at maturity (usually at age 95 or 100). With each
premium payment, the policy owner is reducing the cost of insurance until the
cash value reaches the face amount upon maturity. But, it does not perform
like a whole life policy when each year the costs increase and never stop. In
whole life, the costs are complete within the first few years of the policy.

Option B pays the face amount plus the cash value, as it's designed to
increase the net death benefit as cash values accumulate. Option B offers the
benefit of an increasing death benefit every year that the policy stays in force.
The drawback to option B is that because the cash value is accumulated "on
top of" the death benefit, the cost of insurance never decreases as premium
payments are made. Thus, as the insured gets older, the policy owner is
faced with an ever increasing cost of insurance (it costs more money to
provide the same initial face amount of insurance as the insured gets older).

Limited-pay

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Another type of permanent insurance is Limited-pay life insurance, in which all
the premiums are paid over a specified period after which no additional
premiums are due to keep the policy in force. Common limited pay periods
include 10-year, 20-year, and paid-up at age 65.

Endowments

Endowments are policies in which the cash value built up inside the policy,
equals the death benefit (face amount) at a certain age. The age this
commences is known as the endowment age. Endowments are considerably
more expensive (in terms of annual premiums) than either whole life or
universal life because the premium paying period is shortened and the
endowment date is earlier.

Endowment Insurance is paid out whether the insured lives or dies, after a
specific period (e.g. 15 years) or a specific age (e.g. 65).

Accidental Death

Accidental death is a limited life insurance that is designed to cover the

insured when they pass away due to an accident. Accidents include anything
from an injury, but do not typically cover any deaths resulting from health
problems or suicide. Because they only cover accidents, these policies are
much less expensive than other life insurances.

It is also very commonly offered as "accidental death and dismemberment

insurance", also known as an AD&D policy. In an AD&D policy, benefits are
available not only for accidental death, but also for loss of limbs or bodily
functions such as sight and hearing, etc.

Accidental death and AD&D policies very rarely pay a benefit; either the
cause of death is not covered, or the coverage is not maintained after the
accident until death occurs. To be aware of what coverage they have, an
insured should always review their policy for what it covers and what it
excludes. Often, it does not cover an insured who puts themselves at risk in

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activities such as: parachuting, flying an airplane, professional sports, or
involvement in a war (military or not)..

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NEED OF LIFE INSURANCE:

The original basic intention of life insurance is to provide for one’ family and
perhaps others in the event of death. Originally, polices were to provide for
short periods of time, covering temporary risk situations, such as sea
voyages. As life insurance became more established. It was realized what a
useful tool it was in a number of situations, including:

• Temporary needs threats:

The original purpose of Life Insurance remains an important element, namely

providing for replacement of income on death etc.

• Regular saving:

Providing one’s family and oneself, as a medium to long term exercise

(through a series of regular payment of premiums). This has been become
more relevant in recent times as people seek financial independence from
their family.

• Investment:

Put simply, the building up of saving while safeguarding it from ravages of

inflation. Unlike regular saving products are traditionally lump is investments,
where the individual makes are one time payment.

• Retirement:

Provision for one’s on later years has become increasingly necessary.

Especially in charging culture abs social environment, one can buy a suitable
insurance policy which will provide periodical payments on one’s old age.

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16
BENEFITS OF LIFE INSURANCE:

• It is superior to traditional saving machine.

As well as providing a secure vehicle to build up saving etc. it provides pieced

of mind to the policy holder. In the event ultimately death, of say, the main
earner in the family, the policy will pay out guaranteed sum assured, which is
likely to be significantly more then the total premiums paid. With more
traditional, saving vehicles such as fixed deposits, the only return would be
the amount invested plus any interested accrued.

• It encourages saving and forces thrift.

Once an insurance contract has been entered into, the insured has an
obligation to continue paying premiums, until the end of the term of policy,
otherwise the policy will lapse.

• It provides easy settlement and protection against creditors

Once a person appointed for receiving the benefits or a transfer of rights is

made (assignments), a claim under the life insurance contracts can be settled
easily.

• It can be enchased and facilities borrowing.

Sum contracts may allow the policy can be surrendered for a cash amount, if
policy holder is not in a position to pay the premium. A loan, against certain
policy, can be taken for a temporary period to tide over the difficulty. Presence
of life insurance policy facilitates credit for personal or commercial loans as it
can be offered as collateral security.

• Tax relief:

The policy holder obtains income tax rebates by paying the insurance
premium. The specified from of saving which enjoys a tax rebate u/s 88 of the
income tax act. Include Life Insurance premiums and contribution to a
recognized PF etc.

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TIPS FOR CHOOSING LIFE INSURANCE POLICY

While selecting the right insurance cover, one should always consider her/his
present earnings and the estimated competence to forfeit the insurance
premiums at the allotted dates besides the age factor, future fiscal strategies,
medical condition, etc.

Other factors which needs to be taken into consideration while selecting the
right insurance policy are the policy's cost-benefit ratio and guaranteeing that
the insurance envelops all your family members along with the common
health issues.The cost benefit ratio of the insurance policy relies on many
factors such as what is insured and what are the benefits that come along
with it.

Hence while purchasing the policy one needs to keep a strict vigilance on the
price of the policy and guaranteeing that the policy rationalizes the benefits
included under it.

Besides keeping a close eye on the advantages, the policyholder should also
ensure that the promises made by various insurance firms are adhered by.

The different types of covers that people generally prefer are:

Pure Term Insurance: Pure Term Life Insurance offers insurance cover for life
for certain period of time. However, the cover offers no maturity advantages
but on the demise of the assured, the total amount insured is completely
forfeited to the next of the kin.

Endowment Policy: A life insurance agreement structured to forfeit the total

amount after a certain maturity period or on the event of the assured demise
is known as an endowment policy. The policy offers fiscal safety for a
specified tenure. The purchaser forfeits sporadic premiums for a specific
tenure and continues to stay protected for that particular tenure. If the
policyholder stays alive till the conclusion of the tenure, he is entitled to
receive the fund balance.

Unit Linked Insurance Plan (ULIP): ULIP offers life cover in which the policy

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cost differs from time to time depending on the price of the principal assets at
the given point of time.

Money-back Policy: Money-back Policy is the alteration of endowment plan.

The basic difference lies in the maturity advantages that are forfeited by the
bank at the end of endowment tenures. Money back policies offer cyclic
imbursements of partly continued existence benefits during the tenure of the
cover.

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20
 COMPARITIVE STUDY BETWEEN PUBLIC AND PRIVATE
SECTOR

INTRODUCTION

Insurance is an upcoming sector, in India the year 2000 was a landmark year
for life insurance industry, in this year the life insurance industry was
liberalized after more than fifty years.

Insurance sector was once a monopoly, with LIC as the only company, a
public sector enterprise. But nowadays the market opened up and there are
many private players competing in the market. There are fifteen private life
insurance companies has entered the industry.

After the entry of these private players, the market share of LIC has been
considerably reduced. In the last five years the private players is able to
expand the

market (growing at 30% per annum) and also has improved their market
share to 18%. For the past five years private players have launched many
innovations in the industry in terms of products, market channels and
advertisement of products, agent training and customer services etc.

LIST OF INSURANCE COMPANY IN INDIA

LIFE INSURERS Websites

Public Sector

Life Insurance Corporation of India www.licindia.com

Private Sector

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Allianz Bajaj Life Insurance Company
www.allianzbajaj.co.in
Limited

Birla Sun-Life Insurance Company Limited www.birlasunlife.com

HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com

ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com

ING Vysya Life Insurance Company

www.ingvysayalife.com
Limited

Max New York Life Insurance Co. Limited www.maxnewyorklife.com

MetLife Insurance Company Limited www.metlife.com

Om Kotak Mahindra Life Insurance Co.

www.omkotakmahnidra.com
Ltd.

SBI Life Insurance Company Limited www.sbilife.co.in

TATA AIG Life Insurance Company Limited www.tata-aig.com

AMP Sanmar Assurance Company Limited www.ampsanmar.com

Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com

GENERAL INSURERS

Public Sector

www.nationalinsuranceindia.co
National Insurance Company Limited
m

New India Assurance Company Limited www.niacl.com

Oriental Insurance Company Limited www.orientalinsurance.nic.in

United India Insurance Company Limited www.uiic.co.in

Private Sector

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Bajaj Allianz General Insurance Co.
www.bajajallianz.co.in
Limited

ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com

IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in

Reliance General Insurance Co. Limited www.ril.com

Royal Sundaram Alliance Insurance Co.

www.royalsun.com
Ltd.

TATA AIG General Insurance Co. Limited www.tata-aig.com

Cholamandalam General Insurance Co.

www.cholainsurance.com
Ltd.

Export Credit Guarantee Corporation www.ecgcindia.com

HDFC Chubb General Insurance Co. Ltd.

REINSURER

General Insurance Corporation of India www.gicindia.com

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TOP PRIVATE INSURANCE COMPANY IN INDIA

Earlier we have presented statistics on the market share of all the Life
Insurance companies in Indiaincluding LIC [Public Sector]. Today lets analyze
the difference in market share of Private Sector Life Insurance Companies
over a Year’s time.

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Top 5 Life Insurance Companies in India at the end of April-2008 are:
ICICI Prudential Life – 22.1%
Bajaj Allianz – 13.8%
SBI Life – 9.8%
Reliance Life – 8%
Max New York – 8%

Top 5 Gaines in Life Insurance Business in a Year:

Reliance Life +3.9% gain in total private life insurance market share
Birla Sunlife +3.3% gain in total private life insurance market share
Met Life +2.8% gain in total private life insurance market share
Aviva +2% gain in total private life insurance market share
SBI Life +1.7% gain in total private life insurance market share

Top Losers in Life Insurance Business in a Year:

ICICI Prudential Life – 8.3% loss in total private life insurance market share
Bajaj Allianz – 2.4% loss in total private life insurance market share
HDFC Standard Life – 1.2% loss in total private life insurance market share

From the above data, the reason is now obvious on why K.V.Kamath, wanted
to list ICICI Prudential Life as a separate entity on the bourses.

Through this project I want to study about the life insurance industry and also
doing the comparative analysis between two insurance players in this
industry. They are,

• ICICI Prudential Life Insurance

• Life insurance corporation of India

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OBJECTIVES

The entry of foreign MNC’s and the conductive business environment fostered
by the government, it is no wonder that the re-entry of private insurance has
marked a second coming for the sector. In just five years, the sector has
undergone a makeover, offering more choice, better services, quicker
settlement, tighter regulation and greater awareness ‘s the environment
become more and more competitive and services and products become alike,
creating a differentiation is becoming extremely tough.

Thus, this project objectives is as follows

• To know where Reliance life insurance Company limited & life

insurance Corporation of India companies stands in the market.
• Find out the strength and the weakness of their plans.
• And making comparative analysis between the products of Reliance life
insurance Company limited with Life insurance Corporation of India.

SCOPE OF STUDY

• This study can be conducted by comparing the performances &

products of three private & government insurance players in
insurance industry.
• The number of respondents to be surveyed can be improved.
• The study can be conducted in Bangalore city only.
• This study can be conducted to analyze the market stand of
Reliance life insurance Company limited and Life insurance
Corporation of India insurance companies.

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INDUSTRY PROFILE

“Insurance is a contract between two parties whereby one party called insurer
undertakes in exchange for a fixed amount of money on the happening of a
certain event.” Insurance is a protection against financial loss arising on the
happening of an unexpected event. The primary purpose of Life Insurance is
the protection of the family. Insurance in it's various forms protects against
such misfortunes by having the losses of the unfortunate few paid by the
contribution of the many who are exposed to the same risk. This is the
essence of insurance- the sharing of losses and substitution of certainty for
uncertainty. Insurance companies collect premiums to provide for this
protection. A loss is paid out of the premiums collected from the insuring
public and the insurance companies act as trustees of the amount collected.
In is a system by which the losses suffered by a few are spread over many,
exposed to similar risks.In the western world, life insurance evolved mainly
from the maritime industry. Started by private financiers who used to gamble
on the lives of seafarers by offering five times the money deposited with them
in case of certain contingencies?

In its present form, life insurance has its origin in England and made its debit
in India in the year 1818.Initially, Indians were not considered on par with
Europeans as far as their insurability was concerned. There were also many
other failures. It was in the early part of the 20th century that some kind of
legislation was made to regulate the industry. From then on life insurance
made great strides in the country.

At the time of independence and thereafter, there were more than 200
companies operating in India and not all of them on sound ethical principles.
Many factors combined together to prompt the then government to nationalize

27
the life insurance industry in 1956 to form the Life Insurance Corporation of
India.

The years from 1956 to 1999 saw the life insurance corporation of India
emerge as a giant financial institution and the lone organization purveying life
insurance, if we ignore the minimal presence of postal life insurance. The
institution succeeded in penetrating in many areas and segments of the
population and in garnering public money for public welfare.

It was in the 1990’s that the winds of change started sweeping over India and
brought in their wake many changes in the economy. Liberalization ensured
competition in many fields and there was a clamor that the insurance industry
too is opened up to Private Indian and foreign players to provide the customer
with a choice.

The Malhotra committee, appointed in 1993 was given the mandate to study
the industry and to suggest the changes that were necessary to make it
modern and in tune with people’s aspirations. The report submitted by the
committee was the precursor of the IRDA Bill.

By the passing of the IRDA Bill, the Insurance sector has been opened up for
the private companies to carry on insurance business. Now the life insurance
industry in India is rapidly evolving and growing. It has witnessed a big
growth as many Indian and foreign were entered in to the Indian insurance
sector. The life insurance industry in India has become fiercely competitive
with the entry of several new players including major multinational insurers
after the deregulation of the sector. It has opened up a range of untapped
opportunities for new entrants into the industry, as the potential market for
buyers is high since the emerging market in India has a low insurance
penetration and high growth rates.

28
COMPANY PROFILE

ICICI PRUDENTIAL LIFE INSURANCE

ICICI Prudential Life Insurance Company is a joint venture between ICICI

Bank - one of India's foremost financial services companies-and Prudential
plc - a leading international financial services group headquartered in the
United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI
Bank holding a stake of 74% and Prudential plc holding 26%.

We began our operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA). Today, our nation-wide
team comprises of over 2100 branches (inclusive of 1,116 micro-offices),
over 290,000 advisors; and 18 bancassurance partners.

ICICI Prudential is the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a
row, ICICI Prudential has been voted as India's Most Trusted Private Life
Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most
Trusted Brands'. As we grow our distribution, product range and customer
base, we continue to tirelessly uphold our commitment to deliver world-class
financial solutions to customers all over India.

29
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 Bank
About ICICI Bank: ICICI Bank Ltd (NYSE:IBN) is India's largest private
sector bank and the second largest bank in the country with consolidated
total assets of over US$ 100 billion as of March 31, 2010. ICICI Bank’s
subsidiaries include India’s leading private sector insurance companies and
among its largest securities brokerage firms, mutual funds and private
equity firms. ICICI Bank’s presence currently spans 19 countries, including
India.

Prudential Plc

Established in London in 1848, Prudential plc is an international retail

financial services group with significant operations in Asia, the US and the
UK serving around 25 million customers, policyholder and unit holders
worldwide. The company has £290 billion of assets under management and
it is one of the best capitalised insurers in the world with an Insurance
Groups Directive (IGD) capital surplus estimated at £3.4 billion (at 31
December 2009). Prudential is a leading life insurer in Asia with a presence
in 12 markets and have the top three position in seven key locations of
Hong Kong, India, Indonesia, Malaysia, Singapore, the Philippines and
Vietnam.

30
OUR VISION
To be the dominant Life, Health and Pensions player built on trust by
world-class people and service.

This we hope to achieve by:

• Understanding the needs of customers and offering them superior

products and service

• Leveraging technology to service customers quickly, efficiently and

conveniently

• Developing and implementing superior risk management and

investment strategies to offer sustainable and stable returns to our
policyholders

• Providing an enabling environment to foster growth and learning for

our employees

• And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment

to 5 core values -- Integrity, Customer First, Boundaryless, Ownership and
Passion. Each of the values describe what the company stands for, the
qualities of our people and the way we work.

OUR VALUES :
Every member of the ICICI Prudential team is committed to 5 core values:
Integrity, Customer First, Boundaryless, Ownership, and Passion. These
values shine forth in all we do, and have become the keystones of our
success.

31
LIFE INSURANCE CORPORATION OF INDIA

LIC of India is one of India’s leading financial institutions, offering complete

financial solutions that encompass every sphere of life. From commercial
banking to stock broking to mutual funds to life insurance to investment
banking, the group caters to the financials needs of individuals and corporate.

The Life Insurance Corporation of India (LIC) (Hindi: भारतीय जीवन बीमा िनगम) is
the largest state-owned life insurance company in India, and also the
country's largest investor. It is fully owned by the Government of India. It also
funds close to 24.6% of the Indian Government's expenses. It has assets

estimated of 9.31 trillion (US$ 202.03 billion).[1] It was founded in 1956.

Headquartered in Mumbai, which is considered the financial capital of India,

[2]
the Life Insurance Corporation of India currently has 8 zonal Offices and
101 divisional offices located in different parts of India, at least 2048 branches
located in different cities and towns of India along with satellite Offices
attached to about some 50 Branches, and has a network of around 1.2 million
agents for soliciting life insurance business from the public.

32
MISSION

"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns,
and by rendering resources for economic development."

VISION

"A trans-nationally competitive financial conglomerate of significance to

societies and Pride of India."

OBJECTIVES OF LIC

• Spread Life Insurance widely and in particular to the rural areas and
to the socially and economically backward classes with a view to
reaching all insurable persons in the country and providing them
adequate financial cover against death at a reasonable cost.

• Maximize mobilization of people's savings by making insurance-linked

savings adequately attractive.

• Bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust, without losing sight of
the interest of the community as a whole; the funds to be deployed to
the best advantage of the investors as well as the community as a
whole, keeping in view national priorities and obligations of attractive
return.

• Conduct business with utmost economy and with the full realization
that the moneys belong to the policyholders.

• Act as trustees of the insured public in their individual and collective

capacities.

• Meet the various life insurance needs of the community that would

33
 arise in the changing social and economic environment.

• Involve all people working in the Corporation to the best of their

capability in furthering the interests of the insured public by providing
efficient service with courtesy.

• Promote amongst all agents and employees of the Corporation a

sense of participation, pride and job satisfaction through discharge of
their duties with dedication towards achievement of Corporate
Objective.

34
COMPANY PRODUCT

ICICI PRUDENTIAL LIFE INSURANCE PRODUCT

Insurance Plans

ICICI Prudential has a wide array of insurance plans that have been
designed with the philosophy that different individuals are bound to have
differing insurance needs.

The ideal insurance plan is one that addresses the exact insurance needs of
the individual that will depend on the age and life stage of the individual apart
from a host of other factors.

Life Insurance Plans:

Under Life insurance plans, ICICI Prudential offers plans under the following
major need categories:

• Education Insurance Plans

• Wealth Creation Plans

• Protection Plans

Pension & Retirement Solutions:

The primary objective of a pension plan is to help you provide for your
financial needs in your post retirement years. You will find a Pension Planning
Calculator on the site, meant to make your pension plan review as simple as
possible. The calculator is the first step in your Pension Plan scheme, there
are othe steps towards getting the Indian pension policy you need.

• ICICI Pru LifeTime Pension Maxima

35
 • ICICI Pru LifeStage Pension Advantage

• ICICI Pru Elite Pension II

• ICICI Pru Assure Pension

• ICICI Pru ForeverLife

• ICICI Pru Immediate Annuity

Health Product Suite:

Under Health Product Suite, ICICI Prudential offers plans under the following
major need categories:

Hospitalisation Plans

• MediAssure

• Hospital Care II

36
PRODUCT OF LIFE INSURANCE

• Children's Policy

Komal Jeevan - Plan No. 159

Children Deferred - Plan no.41
Jeevan Kishore - Plan no.102
Jeevan Chhaya - Plan no.103
Marriage Endowment/Educational Annuity - Plan No. 90
Jeevan Anurag - Plan no.168

• Endowment Policy

Endowment with Profits - Plan no.14

Limited Payment Endowment with Profits - Plan no.48
Jeevan Mitra - Plan no.88
New JanaRaksha Policy - Plan no.91
Jeevan Anand Plan no. 149
Jeevan Mitra Triple Cover - Plan no.133

• Group Insurance Policy

Janashree Bima Yojana

Group Insurance Scheme in lieu of EDLI
Group (Term) Insurance Scheme
Group Savings Linked Insurance Scheme
Group Superannuation Scheme
Group Mortgage Redemption Assurance Scheme
Shiksha Sahayog Yojana

• Joint Life Policy

Jeevan Saathi - Plan no.89

37
 • Money Back Policy

Money Back with Profit - Plan no.75

New Money Back - Plan no.93
Jeevan Surabhi 15 yrs - Plan no.106
Jeevan Surabhi 20 yrs - Plan no.107
Jeevan Surabhi 25 yrs - Plan no.108
Jeevan Bharati Plan No 160
Jeevan Samriddhi Plan No 154, 155, 156 157
Bima Bachat- Plan no.175

Pension Plans or Annuities

New Jeevan Dhara - Plan no.148

New Jeevan Suraksha Plan no. 147
Jeevan Akshay II Plan no. 163
Jeevan Nidhi Plan no. 169
Jeevan Akshay V Plan no. 183

Special Plans

Term Assurance - Plan no.43

Mortgage Redemption - Plan no.52
Jeevan Aadhar - Plan no.114
Market Plus - Plan No 181
Jeevan Vishwas Plan No. 136
Jeevan Saral Plan No. 165
Jeevan Pramukh Plan No. 167
Bima Nivesh 2005 Plan No 171
Money Plus-Plan No 180

Term Policy

38
Convertible Term Assurance - Plan no.58
New Bima Kiran
Term Assurance
Anmol Jeevan I Plan No- 164
Amulya Jeevan-Plan No-177

Whole Life Policy

Whole Life with Profits - Plan no.2

Limited Payment Whole Life with Profits - Plan no.5
Single Premium Whole Life - Plan no.8
Jeevan Tarang- Plan no.178

What are the advantages of this plan?”

• You can choose to retire at any age between 45 years and 65 years.
• On retirement:
• Annuity option:
• Early retirement benefits:

Other products are:

• Money plus
• Auto plus
• Child plan
• Health plan

39
SWOT ANALYSIS

Strengths:

• Dedicated Employees.
• Well Efficient Management.
• Technology.
• Diversification of funds.
• Strong and popular brand name.
• Adaptability to changes.

Weakness:

• Lack of good services.

• Lack of awareness about insurance among people.
• Less coverage in Rural Areas.

Opportunities:

• Fast growing economy.

• Increasing per –capita income in India.
• Saving behavior.
• High growth of ULIP industry.

Threats:

• Arrival of new entrants in the insurance industry.

• Cut throat competition within the industry

40
ADVANTAGES OF LIFE INSURANCE

• Protection against risk of untimely death

Life insurance is a product, which offers protection against the risk of death
the full sum assured is made available under a life assurance policy, whereas
under other savings schemes, the total accumulated savings alone will be
available.

• Protection during old age

Life insurance can also be used as a means of saving for one’s future. There
are a number of life insurance policies, which in addition to life cover also
provide the means of investing one’s income. The sum as per the policy will
be received only after a period of time. This amount thus provides for the old
age.

• Forced savings
Payment of life insurance premiums is compulsory and becomes a habit.
Savings in other scheme can be easily withdrawn and may be used for less
worthy purpose. Termination of a life insurance policy by the policyholder
usually results in substantial loss in benefits under the policy to the
policyholder. One is thus encouraged to save and keep one’s policy alive.

• Educational requirements and charity

The object of insurance may be to serve as a security to educational funds in
respect of loans advanced for educational purpose or to provide donations to
charitable institutions like hospital and school.

• Nomination and assignment

The life insured can name the person or persons to whom the policy money
would be payable in the event of his death .the proceeds of a life insurance
policy can be protected against the claims of the creditors of the life insured
by effecting a valid assignment of the policy. The beneficiaries are fully
protected from creditors expect to the extent of any interest in the policy
retained by the insured.

• Marketability and suitability for borrowing

41
After 3 years, if the policyholder finds that he is unable to continue payment
of premiums he can surrender a policy for a cash sum. A life insurance policy
is accepted as a security for a commercial loan.

• Loans from the insurance company

A policy holder can take a loan from his insurance company against the
Security of his life insurance policy provided the terms of the terms of his
policy allow such a loan. This loan can be taken usually after a period of 3
years from commencement of the policy and is a percentage of its surrender
value.

• Investment options
The unit link products gives comprehensive insurance solutions that cater to
an individual’s dual need of earning potentially high returns as well as stay for
life. Thus there is an option to invest money in the products that combine the
best of insurance and investment. In a volatile market conditions it is possible
to secure both as one can hedge the investment with saver investment
vehicles that provide a diversified portfolio.

• Tax benefits
The Indian income tax act provides tax concessions to the policyholder both
on payment of premium and on the maturity amount.

PREMIUMS

42
The private life insurance industry has recorded a growth of 89% with total
new business premium of Rs. 19,471 crore as against Rs. 10,252 crore in the
corresponding period last year. ICICI Prudential continues to be the largest
private life insurance player with a market share of 7% followed by Bajaj
Allianz Life Insurancewhich has a market share of 5.7%.

The comapnies that have recorded fastest growth in the fiscal '06-07
include Reliance Life Insurance, which grew 381%, followed by SBI Life
Insurance which grew 209%. The high growth has enabled SBI Life to move
into the number three postion after Bajaj Allianz Life Insurance.

INFORMATION TECHNOLOGY AND COMPANY

43
LIC AND INFORMATION TECHNOLOGY

LIC has been one of the pioneering organizations in India who introduced
the leverage of Information Technology in servicing and in their business.
Data pertaining to almost 10 crore policies is being held on computers in
LIC. We have gone in for relevant and appropriate technology over the
years.

1964 saw the introduction of computers in LIC. Unit Record Machines

introduced in late 1950’s were phased out in 1980’s and replaced by
Microprocessors based computers in Branch and Divisional Offices for Back
Office Computerization. Standardization of Hardware and Software
commenced in 1990’s. Standard Computer Packages were developed and
implemented for Ordinary and Salary Savings Scheme (SSS) Policies.

FRONT END OPERATIONS

With a view to enhancing customer responsiveness and services , in July
1995, LIC started a drive of On Line Service to Policyholders and Agents
through Computer. This on line service enabled policyholders to receive
immediate policy status report , prompt acceptance of their premium and get
Revival Quotation, Loan Quotation on demand. Incorporating change of
address can be done on line. Quicker completion of proposals and dispatch
of policy documents have become a reality. All our 2048 branches across
the country have been covered under front-end operations. Thus all our 100
divisional offices have achieved the distinction of 100% branch
computerisation. New payment related Modules pertaining to both ordinary &
SSS policies have been added to the Front End Package catering to Loan,
Claims and Development Officers’ Appraisal. All these modules help to
reduce time-lag and ensure accuracy.

METRO AREA NETWORK

44
 A Metropolitan Area Network, connecting 74 branches in Mumbai was
commissioned in November, 1997, enabling policyholders in Mumbai to pay
their Premium or get their Status Report, Surrender Value Quotation, Loan
Quotation etc. from ANY Branch in the city. The System has been working
successfully. More than 10,000 transactions are carried out over this
Network on any given working day. Such Networks have been implemented
in other cities also.

WIDE AREA NETWORK

All 7 Zonal Offices and all the MAN centres are connected through a Wide
Area Network (WAN). This will enable a customer to view his policy data and
pay premium from any branch of any MAN city. As at November 2005, we
have 91 centers in India with more than 2035 branches networked under
WAN.

INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS)

IVRS has already been made functional in 59 centers all over the country.
This would enable customers to ring up LIC and receive information (e.g.
next premium due, Status, Loan Amount, Maturity payment due,
Accumulated Bonus etc.) about their policies on the telephone. This
information could also be faxed on demand to the customer.

ICICI PRUDENTIAL AND IT

The Information Technology function at ICICI Prudential is committed to

enable business through the use of technology. It is segmented into 4 groups
to enable highest levels of delivery to the customers: Life Asia Solutions
Group that provides flexibility in designing

better product offerings to end-users, the Solutions Group- Web that provides
real-time information to customers and is responsible for customer

45
relationship management, IT Architecture & Corporate Solutions Group is in
charge of developing and maintaining a blueprint for the IT architecture for the
enterprise as a whole. This team works as an in house R&D Solution Group,
exploring new technological initiatives and also caters to information needs of
corporate functions in the organization. IT Infrastructure group is responsible
for providing hardware, software, network services to the whole
organization.This group runs the 'Digital Nervous System' of the Enterprise at
the highest levels of efficiency and provide robust, scalable and highly
available platform for deployment .

46
OPERATION IN INDIA LIC

47
48
ASSETS

ASSETS HELD BY ICICI PRUDENTIAL

Assets held as on July 31, 2010 (Rs mn)

Equity 68% 412,922
Debt 32% 189,928
Total 100% 602,849

Assets held by:

Linked Policy Holders 540,714
Other than Linked Policy Holders 62,136
Total 602,849

ASSETS HELD BY LIC

LIC has more than Rs 6,50,000 crores of assets under management and is
much bigger than all the other insurance companies companies. However
less than 30% of the assets are invested in the equity market.

49
PERFORMANCE OF FUNDS

ICICI

Performance Annualised Inceptio

Scheme (3 year Return (Since n
annualised) Inception) Date
17-May-
Preserver * 8.60% 7.46%
04
13-Mar-
Preserver III* 8.49% 8.18%
06
27-Aug-
Preserver IV* NA 8.28%
07

15-Nov-
Protector@ 8.09% 8.07%
01
17-May-
Protector II@ 9.06% 6.82%
04
13-Mar-
Protector III@ 8.09% 7.74%
06
27-Aug-
Protector IV@ NA 9.18%
07

15-Nov-
Balancer# 9.44% 14.99%
01
17-May-
Balancer II# 10.87% 14.15%
04
13-Mar-
Balancer III# 9.28% 10.69%
06
Balancer IV# NA 11.36% 27-Aug-

50
 07

15-Nov-
Maximize$ 8.37% 24.56%
01
17-May-
Maxi miser II$ 9.27% 23.76%
04
13-Mar-
Maxi miser III$ 8.29% 13.05%
06
27-Aug-
Maximiser IV$ NA 10.43%
07

Pension 17-May-
8.41% 7.31%
Preserver* 04

Pension 31-May-
7.96% 7.15%
Protector@ 02
Pension Protector 17-May-
8.85% 6.73%
II@ 04

Pension 31-May-
8.07% 14.66%
Balancer# 02
Pension Balancer 17-May-
9.57% 13.97%
II# 04

Pension 31-May-
7.43% 26.16%
Maximiser$ 02
Pension 17-May-
8.38% 24.28%
Maximiser II$ 04

InvestShield
8.63% 7.46% 3-Jan-05
Cash@

51
InvestShield Life^ 8.55% 11.43% 3-Jan-05
InvestShield
8.83% 11.74% 3-Jan-05
Pension^
New Invest 21-Aug-
8.82% 11.74%
Shield# 06

20-Mar-
Flexi Growth** 7.04% 12.31%
07
20-Mar-
Flexi Growth II** 7.68% 13.08%
07
20-Mar-
Flexi Growth III** 6.96% 12.18%
07
27-Aug-
Flexi Growth IV** NA 9.21%
07

Pension Flexi 20-Mar-

6.31% 12.04%
Growth** 07
Pension Flexi 20-Mar-
7.59% 12.96%
Growth II** 07

20-Mar-
Flexi Balanced^^ 6.81% 9.98%
07
Flexi Balanced 20-Mar-
8.37% 11.70%
II^^ 07
Flexi Balanced 20-Mar-
6.66% 9.67%
III^^ 07
Flexi Balanced 27-Aug-
NA 8.95%
IV^^ 07

Pension Flexi 20-Mar-

7.06% 11.15%
Balanced^^ 07

52
Pension Flexi 20-Mar-
8.26% 11.88%
Balanced II^^ 07

26-Nov-
Multiplier## NA -0.07%
07
25-Feb-
Multiplier II## NA 4.86%
08
25-Feb-
Multiplier III## NA 3.97%
08
25-Feb-
Multiplier IV## NA 4.70%
08

Pension 25-Feb-
NA 3.30%
Multiplier## 08
Pension Multiplier 25-Feb-
NA 4.24%
II## 08

01-Aug-
Secure Plus@ 8.49% 6.40%
03
Secure Plus 17-Nov-
8.64% 6.40%
Pension@ 03
11-Aug-
Cash Plus@ 8.61% 6.60%
03

17-Mar-
R.I.C.H$$ NA 13.92%
08
17-Mar-
R.I.C.H II$$ NA 14.87%
08
17-Mar-
R.I.C.H III$$ NA 14.00%
08
R.I.C.H IV$$ NA 14.84% 17-Mar-

53
 08

Pension R.I.C.H$ 17-Mar-

NA 13.39%
$ 08
Pension R.I.C.H 17-Mar-
NA 14.21%
II$$ 08

Benchmark

* CRISIL Liquid Fund Index

@ CRISIL Composite Bond Index
# 65% CRISIL Composite Bond Index + 35% BSE 100
$ BSE 100
^ 75% CRISIL Composite Bond Index + 25% BSE 100
** S&P CNX 500
^^ 55% S&P CNX 500 + 45% CRISIL Composite Bond Index
## S&P CNX Nifty
$$ BSE 200

PERFORMANCE OF FUNDS LIC

NAV'S AS ON DATE 25/08/2010 EFFECTIVE

FOR

54
 25/08/2010

BASIC
NAV AS REPURCHASE SALE
PLAN NAME UNIT
ON DATE VALUE VALUE
& VALUE
FUND OPTIONS

DATE OF
BIMA PLUS (140) LAUNCH
02.02.2001

SECURED FUND 10 031.5606 029.9826 031.5606

BALANCED FUND 10 041.7814 039.6923 041.7814

RISK FUND 10 061.1593 058.1014 061.1593

DATE OF
FUTURE PLUS (172) LAUNCH
04.03.2005

BOND FUND 10 013.7312 013.7312 013.7312

INCOME FUND 10 016.0834 016.0834 016.0834

BALANCED FUND 10 017.2135 017.2135 017.2135

GROWTH FUND 10 023.8208 023.8208 023.8208

DATE OF
JEEVAN PLUS (173) LAUNCH
18.10.2005

BOND FUND 10 013.7169 013.7169 013.7169

55
SECURED FUND 10 014.3262 014.3262 014.3262

BALANCED FUND 10 014.6382 014.6382 014.6382

GROWTH FUND 10 022.3358 022.3358 022.3358

DATE OF
MARKET PLUS (181) LAUNCH
05.07.2006

BOND FUND 10 014.1851 014.1851 014.1851

SECURED FUND 10 014.3322 014.3322 014.3322

BALANCED FUND 10 014.3291 014.3291 014.3291

GROWTH FUND 10 015.3786 015.3786 015.3786

DATE OF
MONEY PLUS (180) LAUNCH
20.12.2006

BOND FUND 10 013.1570 013.1570 013.1570

SECURED FUND 10 013.1663 013.1663 013.1663

BALANCED FUND 10 013.4181 013.4181 013.4181

GROWTH FUND 10 012.0922 012.0922 012.0922

DATE OF
FORTUNE PLUS (187) LAUNCH
23.08.2007

BOND FUND 10 012.4642 012.4642 012.4642

56
SECURED FUND 10 013.1737 013.1737 013.1737

BALANCED FUND 10 012.1967 012.1967 012.1967

GROWTH FUND 10 012.0437 012.0437 012.0437

DATE OF
PROFIT PLUS (188) LAUNCH
23.08.2007

BOND FUND 10 012.9755 012.9755 012.9755

SECURED FUND 10 013.1191 013.1191 013.1191

BALANCED FUND 10 013.7223 013.7223 013.7223

GROWTH FUND 10 011.8177 011.8177 011.8177

DATE OF
GRATUITY PLUS LAUNCH
22.06.2006

BOND FUND 10 13.7127 13.7127 13.7127

INCOME FUND 10 14.8081 14.8081 14.8081

BALANCED FUND 10 15.4431 15.4431 15.4431

GROWTH FUND 10 14.5432 14.5432 14.5432

DATE OF
HEALTH PLUS (901) LAUNCH
04.02.2008

57
HEALTH PLUS FUND 10 011.7634 011.7634 011.7634

DATE OF
MONEY PLUS - I (193) LAUNCH
22.05.2008

BOND FUND 10 012.9112 012.9112 012.9112

SECURED FUND 10 015.0076 015.0076 015.0076

BALANCED FUND 10 015.0345 015.0345 015.0345

GROWTH FUND 10 014.0035 014.0035 014.0035

DATE OF
MARKET PLUS-I (191) LAUNCH
17.06.2008

BOND FUND 10 011.9162 011.9162 011.9162

SECURED FUND 10 012.4216 012.4216 012.4216

BALANCED FUND 10 012.5525 012.5525 012.5525

GROWTH FUND 10 014.1034 014.1034 014.1034

DATE OF
CHILD FORTUNE
LAUNCH
PLUS (194)
01.11.2008

BOND FUND 10 011.1003 011.1003 011.1003

SECURED FUND 10 015.5220 015.5220 015.5220

BALANCED FUND 10 015.1614 015.1614 015.1614

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GROWTH FUND 10 015.4457 015.4457 015.4457

DATE OF
HEALTH PROTECTION
LAUNCH
PLUS (902)
29.04.2009

HEALTH PROTECTION
10 011.2083 011.2083 011.2083
PLUS FUND

DATE OF
JEEVAN SAATHI PLUS
LAUNCH-
(197)
29.06.2009

BOND FUND 10 010.7007 010.7007 010.7007

SECURED FUND 10 010.8049 010.8049 010.8049

BALANCED FUND 10 011.0203 011.0203 011.0203

GROWTH FUND 10 011.7110 011.7110 011.7110

DATE OF
WEALTH PLUS (801) LAUNCH
09.02.2010

WEALTH PLUS FUND 10 010.3092 010.3092 010.3092

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FINDINGS AND CONCLUSION

The financial markets have continued to witness unprecedented liberalization,

growth and reforms over the last decade prompted by regulatory compulsions
and a rapid integration between domestic and global markets. And as a result,
one has seen substantial growth in the number of financial firms (insurance
companies, mutual funds, brokerages, banks etc.) and in the number and
variety of financial products and services offered by them. As the need of the
people is changing so is changing the investment habits of the people and this
has brought in a spate of new products and schemes where people can
invest.

The concept of insurance as an investment option has arrived where people

first identify the varying needs of money then converts the needs into specific
amount of money and time required to achieve the objective of investments
plans. The objective of insurance as an investment is to ensure that
investments are driven by pre determined and well thought out investment
plan and that the investments are suitable and adequate to meet these plans.
But for this the planner must understand the universe of investments options.
He/she must be well informed on the risk and return attributes of these
options. In addition to the above, companies should also innovate to come up
with better products that would suit the Indian population and should also try
to market and sell their products through new channels of distribution that can
be effective in selling their products to the masses.

People should identify their needs and then decide on the type of policy they
want to invest in. insurance is a good investment option for those people who
do not know where to invest and who do not want to the risk of capital
erosion. But, people who are financially savvy can opt for term insurance and
invest the rest in other options that may give them higher returns

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Overall we have seen that still LIC is very famous but private insurance
companies like ICICI Prudential are growing at exceptionally fast pace.
Private companies show due concern in grievance management and brings
innovative schemes to attract the customers. Right now they are giving good
competition to LIC and very soon they will give very tough competition to Life
Corporation of India.

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BIBLOGRAPHY:

Website:

• www.licindia.com
• www.iciciprulife.com
• www.irdaindia.org
• www.wikipedia.com

Books

• Life and Health Insurance –Kenneth Black and Harold D.

• Fundamental of Risk and Insurance- Emmet J Vaughan and John
Will

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