A

SUMMER TRAINING PROJECT REPORT

ON
DIFFERENT PRODUCTS & LOG –IN PROCESS OF
POLICIES
OF

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

OF BACHELOR OF COMMERCE (PROFESSIONAL)
AWARDED BY G.N.D.U., AMRITSAR
SESSION 2004-2005

SUBMITTED TO:
HARISH MEHTA
LECTURER IN COMMERCE
LYALLPUR KHALSA COLLEGE

SUBMITTED BY:
GURPREET SINGH
B.COM PROF.-3
ROLL NO . 4725

LYALLPUR KHALSA COLLEGE

JALANDHAR
 ACKNOWLEDGEMENT

Thanks to the ‘Almighty’ for showering his blessings.

It gives me immense pleasure to express my sincere and whole
hearted sense of gratitude to Mr. Ramnish Joseph (Agency Sales
Manager) for their kind permission to choose a project report that was
really beneficial to gain practical experience and for his dexterous guidance.
To derive benefits of his enormous experience, it is a matter of great
privilege to me.
I am also thankful to P.S. Sethi (Director St. Soldier Mgt. & Tech.
Institute) & G.S. Kainth (Principal St. Soldier Mgt. & Tech Institute)
who provided the requisite information to give the practical shape to my
work.
I offer my heartfelt appreciation to Miss Renuka Sharma (HOD
Management Deptt.) and Mr. Aman Mahajan for their ever willing co-
operation, moral support, rendering ungrudging assistance where ever need
arose and best wish for successfully taking this study I wish them very best
in their life.
I find no words to acknowledge in so formal manner the sacrifice, love,
help and inspiration rendered to my parents to take up this study.
All cannot be mentioned but nothing is forgotten.

JATINDER SINGH
 WHAT IS INSURANCE?

‘INSURANCE’ is basically a sharing device. The losses to assist resulting

from natural calamities like fire, flood, earthquake, accidents, etc. are not
met out of common pool contributed by large number of persons who are
exposed to similar risks. This contribution of many is used to pay the losses
suffered by the few. However the basic principal is that loss should occur as
a result of natural calamities or unexpected events, which are beyond the
human control. Secondly insured person should not make any gains out of
insurance.
It is natural to think of insurance of physical assets such as motorcar
insurance or fire insurance but often we forget that creator of all these assets
is human being whose efforts have gone a long way in building up the
assets. In that sense, human life is a unique income-generating asset. Unlike
the physical assets, which decrease in value with the passage of time, the
individual becomes more experienced and more matured as he advances in
age. This raises his earning capacity and the purpose of life insurance is to
protect the income of individual and provide financial security to his family,
which is dependent on his income in the event of his premature death. The
individual himself also needs financial security for the old age or on his
becoming permanently disabled when his income will stop. Insurance also
has an element of savings in certain cases.
 FOCUS
A fortuitous claim to a better fortune
THE insurance sector is one of the numerous Indian industries joining the
privatisation bandwagon. By inviting multinationals and individuals to
invest in the country's potential to create and generate wealth, the Indian
government has finally given the insurance sector a run for its money. The
recent Insurance Regulatory and Development Authority bill passed by the
parliament has set the ball rolling and 23 major global players have laid their
wares out in India.

There will be more specialist openings in the sector and keen competition
will ensure a healthy contest amongst insurance providers to offer qualitative
service. Insurance companies like Sunlife, Standard Life, Munich Re-
insurance, New York Life, Lloyds, Aegon Insurance, Reliance (General and
life insurance), Tata (in collaboration with American Insurance Group),
Sundaram Finance, Daewoo, SBI, HDFC and Prudential ICICI have already
procured licences to provide Indians with a better choice in insuring their
future. This will generate more employment with lucrative compensation
packages.

Happy tidings ahead!

Privatisation of the insurance sector promises exciting employment

opportunities for specialists.

The Actuary handles financial problems related to insurance investments,

financial planning and management. It is an important functional area in
insurance and the work requires the individual to extensively employ skills
in mathematics and statistics. Graduates in mathematics and statistics can try
their hand at a course in actuarial practice. Actuary is a paying option
fetching approximately 8 lakhs per annum.

Professional Underwriters assess the risk factor in businesses and are

involved in risk management. Multinationals and international insurance
companies prefer to employ people with a background in science and
medicine. Underwriters can earn up to 6 lakhs per annum.

Marketing insurance policies is not always an easy job. Graduates and

postgraduates in finance and marketing will find profitable openings in
the field. This will also herald a season of change for insurance agents who
specialise as financial consultants proffering advice to the insured on the
gamut of insurance solutions available.

Software professionals will find insurance an interesting avenue wherein

comprehensive networking and database creation, maintenance, updating
and developing in-house packages will be required.

The need for investment professionals will also be felt to generate profitable
returns on lucrative investments and professionals with a degree in finance
are preferred.

Life Insurance Corporation and General Insurance Corporation are

nationalised insurances agencies in the process of entering the private
insurance market. The existing hierarchy of operations in the nationalised
insurance houses spans a range of administrative and field personnel,
selection into which is through a written test followed by an interview.
Administrative officers

Administrative and assistant administrative officers (group I) comprise the

senior management cadre. The assistant administrative officer can specialise
either in administration, accounts, or development. An experienced assistant
administrative officer usually graduates to the post of an administrative
officer.

Administrative officers are liable to frequent transfers and can be posted

anywhere in the country. Graduates between the ages of 21-28 can apply for
the posts.

Development officers

Recruited by the Divisional Office, Development Officers (Group II) recruit

and train agents to procure business, and service existing policies. Insurance
agents can also rise to the post of development officers with experience.
Graduates between the ages of 21 and 26 are eligible to apply for the post of
a development officer. The trainee is put through a period of apprenticeship
lasting a year during which he is acclimatised to the various aspects of
practical functioning.

The third category of the administrative department includes machine

operators, stenographers, clerks, telephone operators, etc. They follow a
recruitment pattern similar to that of the group II officers. Those between the
ages of 18 to 25 are eligible to apply.

Insurance agents
Insurance agents act as a liaison between the company and the policyholder.
A certificate of proficiency is issued to trained insurance agents who can
then begin work in real earnest.

An insurance agent should be an excellent communicator and must possess a

repository of knowledge about insurance policies to market existing policies
to individuals, families, businesses, and corporates. They help policyholders
choose appropriate policies suitable to their need and assist in the settlement
of claims.

Insurance surveyors

They assess genuine loss, and as investigators and assessors reporting to the
insurer, surveyors help indemnify loss of the policyholder. They are
independent professionals licensed by the Controller of Insurance under the
Ministry of Finance and are hired by insurance agencies. Licences are issued
to technically qualified people, engineering graduates, chartered
accountants, and medical professionals, diploma holders or Associates in
Insurance of the Chartered Insurance Institute of London or Federation of
Insurance Institutes of India. Their work can be hectic and involves constant
travel.

Making a beginning

The National Insurance Academy at Pune, Insurance Institute of India, and

the Amity School of Insurance and Actuarial Science offer courses in
insurance.
The Actuarial Society of India, Mumbai conducts an intensive course in
actuarial practice. Probable underwriters can consider the course on offer at
the Institute of Risk Management.

To qualify as an insurance surveyor, you need to be a licentiate possessing

the following qualifications, Fellowship or Associateship of the Institute of
Insurance Surveyors and Adjustors (IISA), Mumbai, a degree or diploma
inArchitecture from a recognised University or Institute, Fellowship or
Associateship of the Institute of Chartered accountants or Cost and Works
Accountants, a degree or diploma from a recognised Institute of
Engineering, and a degree or diploma in Naval Architecture.

Professionals in the insurance sector will find the going great, as alternative
and paying opportunities arise with global participation.

The emergent trend is towards lateral growth rather than simple hierarchical
succession in most organisations. Specialised education has set qualified
professionals on a flight to freedom, to explore unchartered territories and
mark a successful beginning.
 How insurance works?

Suppose there are 1,000 persons all aged 35 years

& healthy lives. They are insured for one year against the risk of death. each
person is insured for Rs 50,000 if the past experience indicates that 4 out of
1000 persons, at this age are expected to die during the year, expected
amount of death claim to be paid to the family of four persons would come
to be RS 2,00,000. The contribution to be paid by each of the 1000 persons
will come out to be Rs 200 per year. Thus all the 1000 persons share loss
caused to the 4 unfortunate families. 996 persons who survived till one year
have not lost anything as they have secured peace of mind & a feeling of
security for their family.
 Need for life insurance
The above definition captures the original, basic, intention of life
insurance. i.e. to provide for one’s family & perhaps others in event of
death, especially premature death. Originally, policies 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 for no of situations, :-including:-

• Temporary needs / threats: The Original purpose of life insurance

remains an important element, namely providing the replacement of
income on death etc.

• Regular savings: Providing for one’s family and oneself, as a

medium to long-term exercise (through a series of regular payment of
premiums). This has become more relevant in recent times as people
seek financial independence from their family.

• Investment: Put simply, the building up of savings while

safeguarding it from the ravages of inflation. Unlike regular saving
products, investment products are tradionally lump sum investments ,
where the individual makes a one time payment

• Retirement: Provision for one’s own later years become increasingly

necessary, especially in a changing cultural & social environment.
One can buy a suitable insurance policy, which will provide periodical
payments in one’s old age.
 Benefits from life Insurance

1. It is superior to a traditional saving vehicles: As well as providing a

secure vehicle to build up savings etc, it provides peace of mind to the

policyholder. In the event of untimely death, of say the main earner in the
family, the policy will pay out the guaranteed sum assured, which is
likely to be Significantly more than the total premiums paid. With more
traditional savings vehicles, such as fixed deposits, the only return would
be the amount invested plus any interest accrued.

2. 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 the policy, otherwise the policy
will lapse. In other words, it becomes compulsory for the insured to save
regularly & spend wisely.In contract savings held in a deposit account
can be accessed or stopped easily.

3. It provides easy settlement & protection against creditors: Once a

person is appointed for receiving the benefits (nomination) or the transfer

of rights is made (assignment), a claim under the life insurance contract
can be settled easily.In addition, creditors have no rights to any monies
paid out by the insurer, where the policy is written under the trust. Under
the married women’s property act (M.W.P Act), the money available
from the policy forms a kind of trust which creditors cannot claim on.
4. It can be encashed & facilitates borrowing: Some contracts may allow

the policy can be surrendered for cash amount, if a Policy holder is not in
 the position to pay the premium. A loan.against certain policies, can be
taken for a temporary period to tide over the difficulty. Some lending
institutions will accept a life insurance policy as collateral for a personal
or commercial loan.
5. Tax Relief:The policyholder obtains income tax rebates by paying the

insurance premium. The specified forms of saving which enjoy a tax

rebate, under section 88 of the income tax Act, include life Insurance
premiums & contributions to recognized provident fund etc.
Different Products

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.

Savings Solutions

? SecurePlus is a transparent and feature-packed savings plan that offers 3

levels of protection.

? CashPlus is a transparent, feature-packed savings plan that offers 3 levels

of protection as well as liquidity options.

? Save''n''Protect is a traditional endowment savings plan that offers life

protection along with adequate returns.
? CashBak is an anticipated endowment policy ideal for meeting milestone
expenses like a child''s marriage, expenses for a child''s higher education or
purchase of an asset.

Protection Solutions

? LifeGuard is a protection plan, which offers life cover at very low cost. It
is available in 3 options - level term assurance, level term assurance with
return of premium and single premium.

Child Plans

? SmartKid education 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 child''s life. SmartKid plans are also available in unit-linked form - both
single premium and regular premium.

Market-linked Solutions

? LifeLink II is a single premium Market Linked Insurance Plan which

combines life insurance cover with the opportunity to stay invested in the
stock market.

? LifeTime II 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 Maximiser.

? Premier Life is a limited premium paying plan that offers customers life
insurance cover till the age of 75.
Retirement Solutions

? ForeverLife is a retirement product targeted at individuals in their thirties.

? SecurePlus Pension is a flexible pension plan that allows one to select

between 3 levels of cover.

Market-linked retirement products

? LifeTime Pension II is a regular premium market-linked pension plan

? LifeLink Pension II 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 Superannuation Plan: ICICI Pru offers a flexible

defined contribution superannuation 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.
 Terminologies

DB: Death benefit: Benefit paid in a life insurance policy or an annuity plan
with live cover in the event of the life assured passing away during the term
LA: Life assured: Person who is insured under the plan
SA: Sum Assured: Amount of money for which the insurance is taken
VB: Vested Bonus: Bonuses that have accrued over the term of the plan in
with profits plans
PP: Purchase Price: The accumulation of the money in a deferred annuity
plan
GA: Guaranteed Additions: Guaranteed return that the insurer adds to the
sum assured
Prospect: Individual that has the potential to purchase a life insurance
policy –i.e. age, health and money
Prosper: The person who buys the policy-prosper and life assured can be
the same person or different-but should fulfill the principle of insurable
interest
Annuitant: The policyholder who has pension / annuity plan
Nominee: The custodian to the claim-may or may not be the rightful owner
to the claim money
Claimant: The person who makes the claim
Beneficiary: The rightful successor to the claim
 Save ‘n’ protect

Save‘n’protect is a with profits endowment plan with FREE extended life

cover.

The prospect has to choose the term & a sum assured for this plan. The plan
provides plan cover during the term of the plan. After the term is over, on
maturity the policyholder is paid the sum assured (SA) along with the
bonuses that have accrued on the policy.

After maturity the policyholder is provided with Free cover for 50% of the
basic sum assured that have been taken for next 5 years. Thus this plan is of
a great advantage when it comes to providing protection. The unique
benefits provided is known as Extended Life Cover(ELC)

GENERAL FEATURES

Surrender: The plan can be surrendered after three policy years has been
completed.

Loans: Are available on the policy and can be taken after the policy acquires
the surrender value. Rate of interest changed will depend upon the interest
rate as of that time.
Paid-up: The policy can acquire a paid up value after a period of three years.
Tax benefits: The plan carries the Sec 88 on the premium paid and Sec
10(10)d benefit on death and maturity claim. The tax benefits are subjects to
tax laws and are not an integral features of Save’n’ Protect.
 Save’n’Protect at a glance

Minimum sum assured Rs 50,000

Maximum sum assured Rs 1,00,00,000
Minimum Premium Yearly- Rs 6,000
Half yearly-Rs 3,000
Monthly- Rs 500
Minimum age at entry 0 Years
Maximum age at entry 60 Years
Minimum maturity age 18 Years
Maximum maturity age 70 Years
Minimum term 10 Years
Maximum term 30 Years
Sum assured in multiples Rs 1,000/-
of
Premium payment Yearly, half –Yearly, &
frequencies monthly.
Premium payment period Entire term of the plan
Benefit coverage period Entire term of the policy+ 5
Years after maturity(50%of
sum assured under ELC )
Death benefit ---------
Age<7years Premiums paid will be
refunded.
Age>7years ----------
ELC period 50% of sum assured in case the
policy holder dies during the 5
Years Extended Term.
Maturity benefits S.A +G.A @ 3.5%
compounded annually (for the
first 4 Years)+V.B(if any &
after 4 Years).
Surrender/Paid up After 3 full years premiums
have been paid.
Loans Allowed after the surrender
value period.
 Cash Bak
CashBak is with profits anticipated endowment plan. This plan provides
liquidity at the regular intervals of time and also help in saving money.

General features

Surrender: The plan can be surrendered after three policy years have been
completed.
Loans: The company in CashBak provides no loans as regular payouts are
available to policyholders
Paid-up: The policy can acquire a paid-up value after a period of three
years.
Tax benefits: The plan carries the sec 88 on the premium paid and
sec10(10)d benefit on death and maturity claim. The tax benefits are subject
to tax laws and are not an integral feature of CashBak.

Target market

1.Young people of the age group 20-30 years who have just started a
career and family.
2.Income group of minimum Rs 10,000 per month.
3.Middle-aged professionals, service holders and businessmen.
 CashBak at a glance

Minimum sum assured Rs 75,000

Maximum sum assured Rs 1,00,00,000
Minimum Premium Yearly- Rs 6,000
Half yearly-Rs 3,000
Monthly- Rs 500
Minimum age at entry 16 Years
Maximum age at entry 55 Years
Minimum maturity age Not Applicable
Maximum maturity age 70 Years
Minimum term 15 Years
Maximum term 20 Years
Sum assured in multiples of Rs 1,000/-
Premium payment frequencies Yearly, half –Yearly, &
monthly.
Premium payment period Entire term of the plan
Benefit coverage period Entire term of the policy.
Death benefit during the term of the policy S.A+G.A@3.5%+Vested bonus
(if any)
Maturity benefits 50% of Sum assured @
3.5%G.A compounded annually
(for the first 4 Years)+V.B (if
any & after 4 Years).

Surrender/Paid up After 3 full years premiums

have been paid.
Loans No Loans
Riders Allowed Critical Illness Benefit Rider
(CIBR)
Major Surgical Assistance Rider
(MSAR)
Accident & Disability Benefit
Rider (ADBR)
Accident Benefit Rider)
 Life Guard
Life Guard is the term insurance solutions from ICICI Prudential. These
plans provide with optimum financial protection in case death. These plans
are extremely reasonable and are so cost effective that you just can’t afford
not to have one.

In this group of term insurance solutions there are three variants:

1. LifeGuard – Return of Premium (ROP)
2. LifeGuard – Without Return of Premium (WROP)
3. LifeGuard – Singe Premium (SP)

Life Guard – ROP

In this variant the premiums that are paid by the policyholder are returned at
the end of the term i.e., on maturity to the policyholder.
Thus this plan serves to provide life protection and at the end of term the
money paid which accumulates to be a substantial amount is received on
maturity.
Moreover, this plan provides with the facility of FREE Extended Life Cover
after maturity – which adds to the protection that LifeGuard ROP so
excellently provides.

General features
Surrender: The plan can be surrendered after three policy years have been
completed.
Loans: No loans are available
Paid-up: The policy can acquire a paid up value after a period of three years.
Tax benefits: The plan carries the sec 88 on the premium paid and sec10
(10) d benefit on death and maturity claim. The tax benefits are subject to
tax laws and are not an integral feature of LifeGuard ROP
 LifeGuard-ROP at a glance

Minimum sum assured Rs 1,00,000

Maximum sum assured Rs 1,00,00,000
Minimum Premium Yearly- Rs 6,000
Half yearly-Rs 3,000
Monthly- Rs 500
Minimum age at entry 18 Years
Maximum age at entry 50 Years
Maximum maturity age 65Years
Minimum term 5 Years
Maximum term 25 Years
Sum assured in multiples Rs 1,000/-
of
Premium payment Yearly, half –Yearly, &
frequencies monthly.
Premium payment period Entire term of the plan
Benefit coverage period Term of The policy
Death benefit The entire Sum assured
Maturity Benefit Sum of Premiums paid &
FREE ELC for 50% OF the SA
For next 5 Years.
Riders Allowed Accident & Disability Benefit
Rider (ADBR)
Accident Benefit Rider (ABR)
Waiver of Premium
rider(WOPR)
Surrender/Paid up After 3 full years premiums
have been paid.
Loans No Loans
Remarks Minimum annual premium
Needs to be Rs 2,400
 LifeGuard-WROP
This is the most cost effective policy to have life insurance. This plan
Provides Life protection in the most effective way & it is as inexpensive as
your daily newspaper.

For a healthy 30-Years old Male, SA of Rs 1 lakh & premium paid Yearly,
the premium on LifeGuard WROP would be Rs 0.88 per Day for a period of
5 years.

Features of LifeGuardWROP

Features of WROP are in many ways similar-however the features that

differentiate it from LifeGuard ROP are mentioned here for your
understanding:

Death Benefit

The beneficiary/nominee gets 100% of the sum assured in case of the death
of the policyholder.

There is no ELC in LifeGuard WROP

Maturity Benefit

NO maturity Benefit
Target Market:

1. Key man Insurance

2. Businessmen & Individuals that have liabilities.
3. People who are looking for pure protection.
LifeGuard-WROP at a glance
Minimum sum assured Rs 1,00,000
Maximum sum assured Rs 1,00,00,000
Minimum age at entry 18 Years
Maximum age at entry 50 Years
Maximum maturity age 65 Years
Minimum term 5Years
Maximum term 25 Years
Sum assured in multiples Rs 1,000/-
of
Premium payment Yearly, half –Yearly, &
frequencies monthly.
Premium payment period Entire term of the plan
Benefit coverage period Entire term of the policy
Death benefit The entire sum assured
Maturity benefits No Benefit
Surrender/Paid up After 3 full years premiums
have been paid.
Loans No Loans
Riders Allowed Accident & Disability Benefit
Rider (ADBR)
Accident Benefit Rider (ABR)
Waiver of Premium Rider
(WOPR)
 LifeGuard-SP

LifeGuard Single Premium is another term product that offers pure

protection at lowest possible cost.

This plan absolves the policyholder from the commitment of paying regular
premiums & ensures that the protection continues without any hindrance.

The concept of this variant is as same as the rest. The product at a glance
will help you in understanding the plan.

Target Market

1. People who do not prefer long term commitments

2. People going for liabilities like housing loan or any sort of
liability.
3. Young professionals that have an earning but are not too sure
about it in the future.
4. Students who are going to study abroad
5. People who are going on short term or middle term assignments
abroad.
 LifeGuard-SP at a glance

Minimum sum assured Rs 2,00,000

Maximum sum assured Rs 10,00,000
Minimum age at entry 18 Years
Maximum age at entry 50 Years
Maximum maturity age 65 Years
Minimum term 5Years
Maximum term 15 Years
Sum assured in multiples of Rs 1,000/-
Premium payment frequencies Single Premium
Benefit coverage period Term of the policy
Death benefit The entire sum assured
Maturity benefits No Benefit
Surrender/Paid up NO SURRENDER VALUE
Loans NO LOANS
Riders Allowed NO RIDERS
 Smart Kid
Smart Kid is with profits anticipated endowment plan that helps parents in
creating an asset through which they can plan for their children’s future.

This plan insures the life of the parent and makes the child the beneficiary-
therefore ensuring that the future if the child is secure-because when you are
a parent you cant leave anything to change-can you?

General Features

Surrender: The plan can be surrendered after three policy years have been
completed.

Loans: The company in Smart Kid provides no loans as regular payouts are
available to policyholders

Paid-up: The policy can acquire a paid-up value after a period of three
years.

Tax benefits: The plan carries the sec 88 on the premium paid and
sec10(10)d benefit on death and maturity claim. The tax benefits are subject
to tax laws and are not an integral feature of Smart Kid

Target Market:

1. Young couples with new born baby or children below 12 Years

of age.
2. Income group of minimum Rs 10,000 per month.
3. Ideal age group: 30-45 years.
4. Professionals, service holders & businessmen.
 Smart Kid at a glance
Minimum sum assured
Maximum sum assured
Age at entry for parent
Age at entry (child)
Maturity age
Minimum term
Maximum term
Premium payment frequencies
Death benefit
Maturity benefits
Surrender/Paid up
Loans
Riders Allowed
Rs 1,00,000
Rs 30,00,000
20 Years to 60 Years
0-12 Years
22 Years-25 Years
10Years
25 Years
Regular premium plan with
Yearly, half-yearly, monthly
mode of payments
Sum Assured paid immediately
+ Wop + Periodic benefits
continue as it is
Two payout structures are there
After 3 years of premiums paid
NO LOANS
ADBR & Income benefit rider
 ForeeverLife

Forever Life is with life cover. The world in which we live today-the life
expectancy is increasing however the earning period is constantly reducing.

This means that we will live longer but earn for a shorter period therefore we
need to make our money work for us. And the earlier we put the money that
we earn towards our retirement fund-the better will be our retirement fund
and thus a better retired life.

Forever Life is a retirement solution that assists in meeting with that need in
a disciplined planner.

General Features

Surrender: The plan can be surrendered after three policy years have been
completed.

Loans: The company in Forever Life provides no loans.

Paid-up: The policy can acquire a paid-up value after a period of three
years.

Tax benefits: The plan carries the sec 88 ccc on the premium paid . Death
claims are exempted from tax under sec10(10)d. Annuity received is taxable
at par with income
Target Market

1. Young People in the age group of 25-30

2. Monthly income Rs 10,000 & above
3. Salaried individuals in private sector
4. Businessmen & Traders

Annuity:

In this plan the annuitant pays a contribution for a term specified which is
called the deferment period and post that term i.e. on Vesting, annuitant get
an annuity. He can choose any of the 5 annuity types that plan provides.
This annuity
Continues till the time the annuitant lives. During the deferment period
ForeeverLife provides with life protection – thus this plan provides both life
insurance & retirement planning benefits.

Annuity Options

1. Life Annuity: This annuity provides an annuity till the time the

annuitant lives. Once the annuitant passes away the contract is over &
nothing is payable. This is suitable for an annuitant who does not have
any dependents. This annuity type will disburse the maximum amount
as an annuity.
2. Life Annuity with return of purchase price: Annuity is paid till the
time the annuitant survives & after the demise the purchase price (as
on vesting) is given to the nominee. Therefore this annuity type can
not provide only annuity but also leave a legacy for the family
 3. Joint Life Annuity, Last survivor annuity: Annuity is paid to the
annuitant and after the annuitant passes away & the spouse survives,
the same annuity will be disbursed to the spouse. On the death of
spouse the annuity will stop & nothing is payable.
4. Joint Life Annuity, Last survivor annuity with return of purchase

price: Annuitant is paid to the annuitant & after the annuitant passes
away & the spouse survives, the same annuity will be disbursed to the
spouse. On the demise of the spouse the purchase price (as on vesting)
is given as a claim to the nominee. Therefore this annuity type can not
only provide an annuity but also leave a legacy for the family.
5. Life Annuity guaranteed for 5,10,15 years & life thereafter: In this
annuity type the annuitant can choose a term of 5,10 or 15 Years &
during the term the annuity will continue to be disbursed irrespective
of the fact whether the annuity is alive or not. If the annuitant survives
the guaranteed period the same annuity will continue to be disbursed
till the time annuitant survives. After annuitants demise nothing is
payable.

Annuities can be taken on yearly, half yearly, monthly basis. Annuity Option
once chosen cannot be changed. Annuities have a 5 or 7 year reset option.
 FOREVER LIFE AT A GLANCE

Minimum sum assured Rs 50,000

Maximum sum assured No Limit
Minimum age at entry 20 Years
Maximum age at entry 60 Years
Maximum maturity age 70Years
Minimum term 5Years
Maximum term 30 Years
Sum assured in multiples of Rs 1,000/-
Premium payment frequencies Yearly, half-yearly & monthly
Premium payment period Entire term of the policy
Death benefit The entire sum assured + G.A
+Vested bonus (if any)
Maturity benefits According to Annuity option
choosed
Surrender/Paid up After three years
Loans NO LOANS
Riders Allowed Accident & Disability Benefit
Rider (ADBR)
Accident Benefit Rider (ABR)
Critical Illness Benefit Rider
(CIBR)
Major Surgical Assistance
Rider (MSAR)
 BIBLIOGRAPHY

1.To know more about life insurance please call ICICI Prudential at 1600
22 2020 or email at wecoveru@iciciprulife.com
2. log on to Icici prupartner.com
3. log on to Icici prudential life insurance company ltd.com
4. Write to icici prudential at:
The customer service desk
ICICI Prudential life Insurance company Ltd,
ICICI Pru Life Towers, 1089 Appasaheb Marathe Marg,
Prabhadevi, Mumbai 400025
Fax us at(022) 2437 6727
5.Annual report issued by Icici Prudential life insurance company.
 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 Prudential''s equity base stands at Rs. 675 crore with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. In the quarter ended
June 30, 2004, the company issued over 100,000 policies, for a total sum
assured of over Rs 3,753 crore and had a new business premium income of
Rs. 242 crore. Today the company is the #1 private life insurer in the
country.
 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, Bhubhaneshwar,
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 ten bancassurance tie-ups, having agreements with ICICI
Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank,
as well as some co-operative banks and corporate agents. It has also tied up
with organisations 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 36,000 insurance agents to
interface with and advise customers. Further, it leverages its state-of-the-art
IT infrastructure to provide superior quality of service to customers.
 ICICI Pru in the News

• ICICI Pru has 40% of private life insurance market

The Economic Times: March 1, 2004

• Prudential seeks to replicate ICICI Pru success

The Economic Times: March 13, 2004

• Best Life Insurer Award

Outlook Money: March 15, 2004

• ICICI Prudential Life hikes capital to Rs 675 cr

The Economic Times: March 17, 2004

• ICICI Pru tops premium income chart

Business Standard: April 15, 2004
 Management
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises
reputed people from the finance industry both from India and abroad.
Mr. K.V. Kamath, Chairman
Mr. Mark Norbom
Mrs. Lalita D. Gupte
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. Kevin Holmgren
Mr. M.P. Modi
Mr. R Narayanan
Ms. Shikha Sharma, Managing Director

Management Team
Ms. Shikha Sharma, Managing Director
Mr. Sandeep Batra, Chief Financial Officer & Company
Secretary
Mr. Shubhro J. Mitra, Chief - Human Resources
Mr. Puneet Nanda, Head - Investments
Ms. Anita Pai, Chief - Customer Service and Operations
Mr. V. Rajagopalan, Appointed Actuary
Mr. Shridhar Sethuram, Chief - Strategy

Promoters
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset
Management Company, which has today emerged as one of the leading
mutual funds in India. The two companies bring together two of the
strongest financial service brands in Asia, known for their professionalism,
excellent quality of service and long term commitment to YOU. Riding on
the success of this relationship, the two companies joined hands once more
in 2000, to form ICICI Prudential Life Insurance, with a commitment to
provide leading-edge life insurance solutions.

ICICI Bank has 74% stake in the company, and Prudential plc has 26%.

ICICI Bank

ICICI Bank (NYSE:IBN) is India''s second largest bank with an asset base
of Rs. 106812 crore. ICICI Bank provides a broad spectrum of financial
services to individuals and companies. This includes mortgages, car and
personal loans, credit and debit cards, corporate and agricultural finance.
The Bank services a growing customer base of more than 7 million customer
accounts and 5 million bondholders accounts through a multi-channel access
network. This includes about 450 branches and extension counters, 1675
ATMs, call centres and Internet banking (www.icicibank.com). ICICI Bank
posted a net profit of Rs.1,206 crore for the year ended March 31, 2003.
ICICI Bank is the only Indian company to be rated above the country rating
by the international rating agency Moody''s and the only Indian company to
be awarded an investment grade international credit rating. The Bank enjoys
the highest AAA (or equivalent) rating from all leading Indian rating
agencies.

Prudential plc

Established in 1848, Prudential plc is a leading international financial

services company in the UK, with around US$250 billion funds under
management, and more than 16 million customers worldwide. 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 22 life and mutual fund
operations in twelve countries - China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
Since 1923, Prudential has championed customer-centric products and
services, supported by over 60,000 staff and agents across the region.
 Underwriting

Underwriting at ICICI Prudential is designed to ensure that the best lives are
taken in the risk pool and at the same time assist sales in getting more
policies.

Underwriting at ICICI Prudential is divided into the following categories:

1. Non-Medical underwriting or jet underwriting

2. Standard Medical underwriting
3. Medical underwriting
4. Female underwriting

Jet Underwriting
Definition:
1. Educated life earning regular income through employment
2. Professionally qualified life earning regular income through
practice
3. Businessmen with gross income of Rs. 2 lakh as proved by ITR
for the last financial year
Maximum age at entry: 45 years
Maximum Premium Ceasing age : 65 years
Minimum service:
Employed wih the government defense, PSU’s , Public or Private Ltd. Co.’s
only.
Employees of partnership firms and proprietorship firms will not qualify.

Qualifying Documents:
For Employed
1. Salary certificate / slip (authentication by employer not necessary)
2. Appointment letter given by employer
3. Tax returns for last one year (last financial year)
4. Form 16

For Professionals
1. Copy of degree certificate signed by the life assured
2. self declaration by professional on his printed letter head
mentioning the year and place of obtaining the professional
degree and years of practice
3. Tax returns for last 1 year (last financial year end)

For Businessmen
1. Tax returns for last 1 year (last financial year end) showing
income above 2 lakhs

Plans allowed: All plans other than Lifeguard series

Riders Allowed: All

 Maximum limit for eligible plan SA+ Rider SA (duly rated up but
not including non-medical plans)
18 to 35 years: Rs. 10 lakhs death risk
36 to 45 years: Rs. 5 lakhs death risk

Standard Medical Underwriting

Cases that do not fall under jet i.e., non medical – such cases go through
medical. The simplest medical examination is called as SME- Standard
medical examination and a majority or policies sold fall under this
category.

Medical underwriting

For cases that have high sum assure and high ages or the underwriter feels
that their needs to be more security before issuance-certain medical
tests are conducted

Female underwriting

Female underwriting is divided into three groups. Special underwriting

norms are required for female lives because of health profile, pregnancy
related issues and the varied socio-economic profile
 Application Form & Log- in Process

There are lot of processes & activities that take place while the proposal
pack is converted into the policy. The process that takes place is called the
sales process. At the very outset, it may be said that there are three basic
stages.
These are –

The Advisor customer Interface: This is the stage where after the Advisor
has offered a solution using our company’s products, he has the application
form filled up by the client. Along with this, the other documents that
comprise the proposal pack are also collected.

The Advisor Branch Interface: In this second stage, the Advisor submit
the proposal to the branch office of the company, where after checking for
the completeness of the proposal pack, the acknowledgement slip is handed
over to the advisor, along with the medical slips.

Business process: Here we are referring to the actual processing of the

applications. This would happens once more as one of the three processes –
1. Process for Jet Cases
2. Process for Standard Medical cases
 3. Process for Medical cases
Advisor confidential Report:
Here are the guidelines to be followed while filling up the Advisor
Confidential Report –

a. Do fill up the information on the identity of life Assured

b. Mention the purpose of insurance for client
c. Provide details as available on the occupation of life assured
d. Do mention his relation with the life assured or proposer
e. Mention about income & assets details
f. Details about other insurance policies would be disclosed
g. The general risk factors would help us to know if there are
some hobbies or financial or social position or personal
habits that would impact the risk profile of the life to be
assured.

Proposal Pack:
Here are the documents that comprises a proposal pack –

 Completed application form.

 Proof of age
 Computer generated Quotation Slip, which is included in proposal pack
 Benefit illustration of the products
 First Premium Deposit cheque ,/ Demand draft / bank pay order.
 Ensure that the application no. is written behind the cheque, DD
 Income Proof
 Advisor’s confidential Report
 Client Confidential Report

Application form:

• The client should countersign all cuttings, overwritings

• All the fields in the application form should be filled
• Ensure that the application form is filled with same colour ink

Age proof (standard)

 Date of birth / name match with that on form

 If the life assured is married woman, a marriage certificate or maiden
name declaration should be disclosed
 The information provided in the age proof should be legible.

Age proof ( Non-standard)

 Date of birth / name does not match with that on form

 Document provided is not legible
 Document provided is not valid
 The death risk exceeds Rs. 3 lakh
 The cover ceasing age for the person is more than 60 years.
Quotation slip
1. Details on the computerized quotation slip does not match with those
mentioned on the Application form
2. For Non –Standard Age proof ,extra premium charged not included in the
Quotation slip

Payments details
1. The first premium amount is lesser than Rs. 800
2. For monthly mode of premium payment, the cheque is enclosed for one
month
3. Unacceptable if third party issued cheque
4. For monthly mode of payment, the ECS form is not attached

Other Documents
1. Jet documents not attested by life assured
2. In case of student life, copy of recent ID card/ mark sheet not enclosed.
3. Income proof not enclosed as per requirements.

Certain Pointers
 The advisor must not accept cash payments from the client. Cash will be
accepted only by sales officer at the branch.
 See that the form has been filled in the capitals and in legible
handwriting & dark ink
 The application number should be written behind the cheque
 Take the appointment with the doctor as per the doctor list on the behalf
of the client and inform as to what medical test he/ she will need to
undergo
 Give to the client both the copies of Medical examination slip.
 The advisor code should be mentioned on the Application form.

Conclusion
Icici Prudential life company is no.1 in Private sector. Its alone total market
share in private sector is 36% amongst 17 leading private Insurance
Companies. It has just completed 1million policies in only 3 previous years.
So it is fast growing company amongst other private companies.
There will be more specialist openings in the sector and keen
competition will ensure a healthy contest amongst insurance providers
to offer qualitative service. Insurance companies like Sunlife,
Standard Life, Munich Re-insurance, New York Life, Lloyds, Aegon
Insurance, Reliance (General and life insurance), Tata (in
collaboration with American Insurance Group), Sundaram Finance,
Daewoo, SBI, HDFC and Prudential ICICI have already procured
licences to provide Indians with a better choice in insuring their
future. This will generate more employment with lucrative
compensation packages