A

COMPARATIVE INSURANCE

STUDY

OF

LIFE

INSURANCE POLICIES PROVIDED BY LIFE CORPORATION ICICI PRUDENTIAL LIFE INSURANCE

BY: VISHAL S. DIPANI T.Y.BBA ROLL NO.35

GUIDED BY: Mr. KRUNAL LECTURER

SWAMI SAHAJANAND COLLEGE OF COMMERCE AND MANAGEMENT BHAVNAGAR UNIVERSITY BHAVNAGAR BATCH 2009-11

COMPARATIVE INSURANCE

STUDY

OF

LIFE

INSURANCE POLICIES PROVIDED BY LIFE CORPORATION ICICI PRUDENTIAL LIFE INSURANCE

A PROJECT SUBMITTED TO
THE BHAVNAGAR UNIVERSITY OF BHAVNAGAR IN PARTIAL FULFILLMENT FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION
BY: VISHAL S. DIPANI T.Y.BBA ROLL NO.35 SWAMI SAHAJANAND COLLEGE OF COMMERCE AND MANAGEMENT BHAVNAGAR UNIVERSITY BHAVNAGAR BATCH 2009-11 GUIDED BY: Mr. KRUNAL LECTURER

CONTENTS
Sr. no. 1. Particulars Candidates Statement Page no. 3

2.

Preface

3.

Acknowledgement

4.

Executive Summary

5.

Introduction about Industry

19

6.

Company Profile

25

7.

Research Methodology

28

8.

Findings

67

9.

Bibliography

71

1.CANDIDATES STATEMENT
3

I, Vishal Dipani, the student of T.Y.B.B.A. undersigning that the project work presented in this report is my own work and has carried it out under the cooperation and guidance of the lecturer Mr.Krunal of Swami Sahajanand college of commerce and management, Bhavnagar.

I, am thankful to Mr.K.U.PATHAN, the DEO of LIC of Bhavnagar for helping me in making this project.

Date; Place: SSCCM, BHAVNAGAR ---------------(Mr. Krunal)

2. PREFACE
There are mainly two main learning methods viz.
4

(i) Theoretical learning method (ii) Practical learning method.

From the above two learning methods, the practical learning method is much effective and efficient and leads to the better understanding of the subject. Whenever the matter is concerned about management we must go towards practical aspect because management wants actual prediction and result that can be possible only through practical aspect.

Being a student of management

i.e. BBA and doing specialization in

finance I find the need to understand the market trend closely, so that I can judge what is actual position of the market in this competitive era. I have to touch the practical aspect to understand the difference between practical knowledge and theoretical knowledge.

Today insurance sector is not treated as only an insurance cover but also for savings and investments. Before, 2000 Indian insurance sector was only run by public companies, but after 2000, the private companies also entered in to the insurance market. I have been assigned to do a comparison on insurance policies provided by public sector and private sector. And I choose Life Insurance Corporation of India (LIC) as Public sector and ICICI Prudential Life Insurance as Private sector.

Whatever I have learnt and I will learn in theories and books may or may not be directly useful to me, but to make that knowledge usable I need to go through practical aspects, which will be received by me through this project training.

This report is true reflection of what I have understood and learnt during the course of project. This is prepared for the purpose of study for my own knowledge.

3. ACKNOWLEDGEMENT
This report is an outcome of the efforts of many guardians who helped me through out in preparation of my project. I am really thankful to all of them.

First and foremost I am thankful to my trusty Dr. Sureshbhai Sawani, and our honorable principal Miss. Hetal who gave me such opportunity to learn something new? Then I would like to express my deep gratitude to lecturer Mr. Krunal my project guide. During my project work, she has been constant source of inspiration and encouraged me throughout the project

I am heartily .thankful to Mr. K.U.PATHAN the development officer of LIC of India, Bhavnagar branch.

Again I am thankful to all my coordinators.

VISHAL DIPANI (A Student of

T.Y.B.B.A.) SSCCM BHAVNAGAR

4. EXECUTIVE SUMMARY

Sr.no.

Particulars

Page no.

A.

What is insurance?

10

B.

Why should we take insurance?

11

C.

Which providing

are

the

companies

12

Insurance?

D.

History of Insurance

13

E. F.

Need

and

advantages

of

15 18

insurance Present and future market senior of Life Insurance sector in India.

[A.] WHAT IS INSURANCE?

Life insurance is a guaranty that your family will receive financial support, even in your absence. Put simply, Life Insurance provides your family with a sum of money when something happens to you. It thus permanently protects your family from financial crises.

Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.

The contract is valid for the payment of the insured amount during: The date of maturity, or Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the corporation by the policyholder. Life Insurance is a universally acknowledged to be an institution, which eliminates risk, substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner.

By and large, life insurance is civilizations partial solution to the problems caused by death. Life Insurance in short, is concerned with two hazards that stand across the life path of every person:
10

1. That of dying prematurely, leaving a dependent family to fend for itself. 2. That of living till old age without visible means of support.

[B] WHY SHOULD WE TAKE INSURANCE?

Insurance is desired to safeguard one self and ones family against possible losses on account to risks. It provides financial compensations for losses suffered due to the happening of some unforeseen events. By taking life insurance person can have peace of mind and need not to worry about the financial consequences in case of any untimely death.

Life Insurance helps you to protect yourself and your family against an uncertain future. While thinking about the future, some questioned that need to be answered are;

1. In case of ones death, will his family have enough money to meet their standard of living?
2. When one gets old, will he have enough money to live a comfortable retired

life? 3. What is the value of his assets today? 4. What are his liabilities today and how much will they amount to in future? 5. How much insurance does one need?

11

[c]. WHICH ARE THE COMPANIES PROVIDING INSURANCE?

In India prior to liberalization, insurance protection was made available through public sector insurance companies viz; Life Insurance Corporation of India and subsidiaries of General Insurance Corporation of India.

During the reform process and passing of Insurance Regulatory Development Act (IRDA) by the Parliament in 1999, the Indian Insurance sector was opened for private company.

Today at present the following Private Companies are providing Life Insurance to the Indian people:

1. BAJAJ ALLIANZ LIFE INSURANCE 2. ICICI PRUDENTIAL LIFE INSURANCE 3. RELIANCE LIFE INSURANCE
12

4. HDFC STANDARD LIFE INSURANCE 5. MET LIFE INSURANCE 6. SAHARA INDIA LIFE INSURANCE 7. AVIVA LIFE INSURANCE 8. TATA AIG LIFE INSURANCE 9. ING VYSYA LIFE INSURANCE 10. BIRLA LIFE INSURANCE 11. MAX NEW YORK LIFE INSURANCE 12. SBI LIFE INSURANCE 13. KOTAK MAHINDRA INSURANCE

[D] HISTORY OF 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.

13

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 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 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, 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 core, it rose to 176 companies with total business-in-force as Rs.298 core in
14

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 o 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 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 1 st September, 1956, with the objective of spreading life insurance much 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.

[E]. NEED & ADVANTAGES OF INSURANCE

Need For Life Insurance:

15

Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet you dual needs - saving for lifes important goals, and protecting your assets.

Benefits of Life Insurance In Detail:

1.Assets protection:
From an investors point of view, an investment can play two roles asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation.

The core benefit of life insurance is that the financial interests of ones family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.

2. Goal Based Savings:

16

Each of us has some goals in life for which we need to save. For a young newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for ones retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage.

Life insurance is the only investment option that offers specific products tailor-made for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at the particular life stage, and hence ensures that the financial goals of that life stage are met.

The table below gives a general guide to the plans that are appropriate for different life stages,

17

Life Stage
Young & Single

Primary Need
Asset creation

Life Insurance Product

Wealth creation plans

Young & Just married Married with kids

Asset creation & protection

Wealth

creation

and

mortgage protection plans Childrens education, Asset creation Education and protection Middle aged with grown up kids Across all life-stages Planning protection Health plans for retirement & insurance, mortgage protection & wealth creation plans asset Retirement solutions mortgage protection Health Insurance. &

18

[F]. PRESENT & FUTURE MARKET

SENIOR OF LIFE INSURANCE SECTOR IN INDIA

Valued @ $10.2 billion, the Indian insurance industry is on an expansion stage with the largest number of life insurance policies in force in the world, Indias insurance sector accounted for 4.8 % of GDP in 2006-07, up from 3.14 % in 2005-06. The industry recorded a 19.9 % growth in premium in dollar terms in 2006-07, compared to the world market growth rate of 2.9 %. In fact, the growth in premium has pushed India being the 15th largest market from 19th in 2005.

Market penetration tends s to rise as incomes increase, particular in life insurance. India, with its huge middle-class house-holds base and
19

a galloping economy, has exhibition a huge potential for this sector. Current estimates say that for every 1% increase in our GDP, insurance premium increase by at least 4 %.

The domestic insurance industry in India is estimated to reach about $60.5 billion by 2010, of which $35 billion will come from rural and semi-rural areas, while life insurance is expected to grow to $35 billion.

20

INTRODUCTION ABOUT INDUSTRY

[A]. INTRODUCTION OF LIC {PUBLIC COMPANY}

21

LIC was formed in 1st Sep, 1956 with a capital contribution of Rs.5 cores from the Government of India. Its main duty was to spread the message of life insurance in the country and mobilize people to save for nation building activities.

Overtimes LIC become very popular in India. The central office of LIC is in Mumbai and it has 7 zonal offices at Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Kanpur and Bhopal. There are over 100 divisional offices and 2500 branch offices. There are more than 5.59 lakhs active agents of LIC. It also has office abroad at Fiji, Mauritius, and the United Kingdom for business transactions. LIC has entered into joint ventures abroad with several companies in the field of insurance. LIC has enjoyed monopoly of life insurance business till near the end of 2000. By enacting the IRDA 2000, the government of India effectively ended LICS monopoly and opened the doors for private insurance companies.

LIC has a variety of plans which helps all categories of people and their diverse need. The fund generated through the premium of policy holders are divested to a number of socio-economic project in the country. The LIC insurance plan is categories as: Individual insurance plan, Group insurance schemes, Pension plan, and Capital market linked plan.

22

Objectives:

to

Spread Life Insurance widely and in particular to the rural areas and 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 peoples savings by making insurance-linked adequately

savings 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 vies national priorities and obligations of attractive return.

Conduct business

with utmost economy and with the full realization that the

moneys belong to the policy holders.

Act

as trustees of the insured public in their individual and collective

capacities.

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

23

 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.

[B].

INTRODUCTION LIFE

OF

ICICI

PRUDENTIAL

INSURANCE

{PRIVATE COMPANY}

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank one of Indias foremost financial services companies-and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 29.32 million, with ICICI Bank holding a stake of 74% and prudential plc holding 26%. ICICI Prudential Life Insurance began their operations in December 2000 after receiving approval from Insurance Regulator y Development Authority {IRDA}. Today, our nation-wide team comprises of over735 offices, over 243,000 advisors; and 22 banc assurance partners.

ICICI Prudential was 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 Indias Most Trusted private Life Insurer, by The Economic Times AC Nielsen ORG Marg survey of Most Trusted Brands. As ICICI prudential Life insurance grows their distribution,

24

product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India.

Vision:

To be the dominant Life, Health and pensions player built on trust by worldclass people 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 policyholder. Providing and 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, Boundary less, Ownership and passion. Each of the values describes what the company stands for, the qualities of our people and the way we work.
25

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

Values:
Every member of the ICICI Prudential team is committed to 5 cores values: Integrity, Customer First, Boundary less, Ownership and Passion. These values shine forth in all we do, and have become the keystone of our success.

26

6.

COMPANY PROFILE

27

[A]. COMPANY PROFILE OF LIC {PUBLIC COMPANY}

Name

Life Insurance Corporation of India

Establishment Year : 1st September 1956. Registered Office : LIC of India Western Zonal Office Yogakshema, Jeevan Bima Marg, Mumbai 400021 Web Site Company Form Punch line : : : www.licindia.com Public Company Zindgi Ke Sath Bhi, Zindgi Ke Bad Bhi.

28

{B}. COMPANY PROFILE OF ICICI PRUDENTIAL LIFE INSURANCE (PRIVATE COMPANY)

Name

: ICICI Prudential Life Insurance Company Limited.

Establishment Year Registered Office

: :

24th Nov, 2000. ICICI Prudential Life Insurance Company Limited. ICICI Prufile Towers, 1089, Appasaheb Marathe Marge, Prabhadevi, Mumbai-400025.

Web Site Company Form Punch Line

: www.iciciprulife.com : Private Company. : Jeetye Raho

29

7. RESEARCH METHODOLOGY
30

SR. NO

PARTICULARS

Page No.

Objective of Research

30

Source of Research

30

Research Instrument

31

Limitation of Research

31

Data Analysis

32

31

{A}. OBJECTIVES OF RESEARCH

The main objective of doing this research is to know whether people prefer private or public company at the time of taking insurance. There are some other objectives of this research which are as follows: To know about insurance.

To know about a comparative performance of public and private life insurance.

To know about various policies provided by public and private insurance companies.

{B}. SOURCE OF RESEARCH.

The data has been collected from both primary as well as secondary sources.

32

 The primary data is a data basically collected for the purpose of concerned

or particular study. In case of this project primary data of the study has been collected by interaction with the officers.

The secondary data is one which already exists or is someone for some other purpose of study. In case of this project the secondary data has been collected through web sites, office records in banks, magazines, books, newspapers, etc.

{C}. RESEARCH INSTRUMENT

There are some methodologies through which we can do the research and for that there are some instrument available. As my research is more concerned with public opinion, I have chosen questionnaires as my instrument. Through asking question I can easily judge the people views and also it take very less time of the people. I have fill up 50 questionnaires in Bhavnagar area and then I have given conclusion to my research.

[D]. LIMITATIONS OF RESEARCH

I have research my project in very selective area if, we go for mass area

than the result may be differs.

33

 Some people are not more aware about the public and private insurance
market when, such people fill up the format that time there is possibility of wrong conclusion.

Some people are not interested in answering the question at that time the
result may be differs

[E]. DATA ANALYSIS

Potential Market Position of Both the Companies

Claim settled during 1.4.2008- 31.3.2009

(As per IRDA annual report)

CLAIM PENDING AT THE START OF YEAR

CLAIM INTIMATED DURING THE YEAR

TOTAL CLAIMS

CLAIM SETTLED

% OF CLAIM SETTLED

34

LIC

11550

579547

591097

564389

95.48%

ICICI PRUDENTIAL LIFE

365

10378

10743

9298

86.55%

PROFIT AND LOSS SECENARIO

AS PER IRDA ANNUAL REPORT PROFIT AFTER TAX AS ON 31.3.2008 PROFIT AFTER TAX AS ON 31.3.2009 ACCUMULATED LOSS AS ON 31.3.2009

35

LIC

Rs.84,463 LAKH

Rs. 95,735 LAKH

NIL

ICICI PRUDENTIAL LIFE

Rs.1,39,506 LAKH

Rs.77,970 LAKH

Rs.3,77,646 LAKH

After the entry of private players in the insurance market in 2000, Indias insurance industry has moved into exiting and thrilling times. The insurance sector in the country now accounts for 10-15% of Indias total financial sector. The opening up of sector has lured many foreign players into the market.

By referring above chart it can be said that because of stiff competition LIC loses its market share from the total market. In 2002, the private sector accounted for a very small 1.4% share, which has grown to a huge 25.8% in
36

2007; and on the other hand the share of LIC has shrunk from 98.6% in 2002 to 74.2% in 2007.

But, if we compare LIC with ICICI Prudential Life Insurance than in 2006 the share of LIC is 73.5% and the share of ICICI prudential Life Insurance is 6.7% while , in FY07 the share of LIC increase by 0.7% and the share ICICI Prudential Life Insurance increase by 0.5% that means both are growing at about the same level.

At the same time if we compare ICICI Prudential Life Insurance with other private companies than the market share of ICICI Prudential Life Insurance is highest and so it is recognize as Indias no.1 private life insurance company.

PRODUCTS OFFERED BY BOTH THE COMPANIES

LIFE INSURANCE CORPORATION LIC

ICICI PRUDENTIAL LIFE INSURANCE ICICI

Childrens plans
37

1. Jeevan Anurag 2. CDA Endowment Vesting at 21 &18 3. Jeevan Kishor 4. Child Carrier plan 5. Komal Jeevan Plan 6. Marriage Endowment or Education Annuity plans. 7. Jeevan Chhaya 8. Children Future plan

1. Smart Kid Regular Premium

Retirement Plans 1. Jeevan Nidhi 2. Jeevan Akshay 3. New Jeevan Suraksha 4. New Jeevan Dhara 1. Forever Life 2. Immediate Annuity

Money Back Plans 1. Money Back Policy- 20 year & 25 year.

38

1. Save n protect

2. Jeevan Surbhi 15 year, 20 year & 25 year . 3. Bima Bachat 4. New Bima Gold

2. Cash Bank

Term Assurance Plans 1. Two year Temporary Assurance Policy 2. The Convertible term assurance policy 3. Anmol Jeevan-1 4. Amulya jeevan 3. Home Assurance 4. I Protect 2. Pure Protect 1. Life Guard

Whole life 1. Whole life policy 2. Whole life Limited Payment 3. Whole life Single payement 4. Jeevan Anand 5. Jeevan Tarang 1. Whole Life 2. Guaranteed Savings Insurance Plan

39

Endowment Plans 1. Endowment Assurance policy

2. Endowment Assurance policy-

1. Life Time Premier 2. Pinnacle 2 3. Life Stage Wealth

Limited payment 3. Jeevan Mitra (Double & Triple Cover Endowment) 4. Jeevan Anand 5. New Janaraksha Plan 6. Jeevan Amrit 4. Life Link Wealth Sp

Special Plans 1. Jeevan Bharti -1 2. Jeevan Adhar 3. Jeevan Vishwas 4. Jeevan Sath 5. Jeevan Sathi Plus 1. Health Saver 2. Medi Assure 3. Hospital Care 2 4. Cricis Cover

40

LIC

ICICI PRUDENTIAL LIFE INSURANCE

Children Carrier Plan ICICIs Children Carrier Plan is specially designed to meet the increasing educational and other needs of growing children. It provides the risk cover on the life of child not only during the policy term but also during the extended term (i.e. 7 years after the expiry of policy term). A number of Survival benefits are payable on surviving by the life assured to the end of the specified duration.

Smart Kid ICICI Prudentials Smart kid is a fixedterm insurance plan that provides you with funds at regular intervals. The plan also keeps the family financially secure should an untoward event ever occur. Smart Kid New Unit linked Regular Premium is a unit-linked plan, which enables you and your child to accumulate wealth by virtue of performance of the under lying market41

linked instrument Options: A person may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of Premium payment and Premium Waiver Benefit. Minimum/Maximum Entry Age{Parent}: 20-60 Years Minimum/Maximum Entry Age {Child}: Payment of Premiums: A person may pay the premiums regularly at yearly, half-yearly, quarterly or through Salary deductions over the term of policy. Premiums may be paid either for 6 years or up to 5 years before the policy term. Minimum/Maximum Term: 10-25 years Premium Payable Frequency: Yearly, Half-Yearly, Monthly. Death On death (after of the Commencement Benefit: Date Risk) of Minimum Sum Assured: Annual Premium And Term/2 Subject To A Minimum of Rs 1, 00,000. Features and Benefits: Regular payouts: As the child approaches key educational milestones such as 12th standard or graduation exams, he or she will receive regular payouts, guaranteeing he or she On death during the Extended Term Sum On Assured death (before is the payable. Date of continues to study, no- matter what the circumstances. Death Benefit: Your child will receive
42

Eligibility Condition and Other Restrictions:

0-15 years Maximum Age At Maturity {Child}:18-25 Years

Minimum Premium: 10,000/-

(i) If death occurs within the period from date of commencement of risk to 5 years before the date of expiry of policy term: Sum Assured along with Vested Simple Reversionary Bonuses and Final (Additional) bonus (if any) is payable. (ii) If death occurs within 5 years before the date of expiry of policy term: Sum Assured along with Final (Additional) bonus (if any) is payable.

the sum assured immediately, should Commencement of Risk) All the something happen to you. ICICI Prudential will pay the remaining premiums, ensuring your child continues to receive policy benefits, as always. Income Benefit Rider: You can choose to add the benefits of this rider to your childs education plan. Should you depart before your sons or daughters AutoCover: If after at least two full years premiums have been paid and any subsequent premium be not duly paid, full death cover shall continue for a period of two years from the due date of the First Unpaid Premium (FUP). During this Auto Cover Period, one or more installments of premiums with interest can be paid without submission of evidence of health. On payment of one or more of the arrears of installment premiums with interest, the Auto Cover Period of 2 years shall be extended from the due date of new FUP. Premium Waiver Benefit shall remain in force during the Auto Cover period. Tax Benefits: Premiums you pay for a smart Kid policy are eligible for tax savings [u/s 80{C}]. Maturity and death benefits are eligible for tax exemption Add-on riders: Accidental Death and Disability Rider and Waiver of Premium Rider ensure your child stays doubly protected, at all times. You can choose to add these to your childs education policy. education is complete, your child will receive 10% of Rider Sum Assured, for the balance term of the policy. premiums paid (excluding extra premium and premium for premium waiver benefit, if any,) along with interest of 3% p.a compounding yearly shall be payable.

Premium

Waiver

Benefit:

The proposer can opt for this benefit if aged between 18 and 55 and is medically fit. It provides waiver of premiums on death of proposer. Further the benefit shall remain in force during the Auto cover period. Any premiums that have
43

fallen due and not paid during the Auto Cover period shall also be waived. This benefit shall not be available in case of suicide by the proposer within one year of policy. Further, revival of the policy shall be subject to medical fitness of the proposer.

Eligibility

Conditions

and

Other

Restrictions: Minimum entry age birthday) Maximum Entry age birthday) Minimum maturity age birthday) Maximum maturity age birthday) Minimum sum assured Maximum sum assured Policy term Premium Paying Term: Policy Term less 5 years. -------------------------------------------------------: Rs.1,00,000 : Rs.10,00,000 :11 to 27 years 6 years and :27 years (last : 23 years (last : 12 years(last : 0 years (last \

Forever Life
44

Jeevan Nidhi
ICICI Prudential's ForeverLife is a LICs JEEVAN NIDHI is a with profits Deferred Annuity {pension} plan. On survival of the policy holder beyond term of the policy the accumulated amount {i.e. Sum Assured + Guaranteed Additions + Bonuses} is uses to generate a pension {annuity} for the policyholder. The paln also provides a risk cover during the deferment period The USP of the plan being the pension can commence at 40 years. The premiums paid are exempt under section 80ccc of Income Tax Act. This is a with-profits pension plan which provides for death cover during the deferment period and on survival to the date of vesting, the maturity proceeds are compulsorily to be used for purchase of annuity. Premiums: Choose the Sum Assured and Vesting Age (age at which one wants to start receiving his pensions). Eligibility Conditions and other Restrictions: Minimum age at entry: 18 years {completed} Maximum age at entry: 50 years Maximum age at vesting: 60 years Policy terms: 6to 35 years under Single Pre-decided vesting age: Choose the date from which one want to receive pensions. Life cover: Enjoy the protective benefits of a life cover during the term of your policy i.e. the time from when one
45

complete insurance cum pension plan that performs two crucial roles: it acts as a protective cover while you earn for your retirement, and provides you with regular pensions once you retire.

Features and benefits of ForeverLife

ForeverLife is

regular

premium

deferred pension plan, which provides you with the security of a life cover during regular your working once years you (the retire Accumulation phase of the policy) and pensions (Annuity phase of the policy).

Depending on these as well as his age at entry, his annual premium is determined.

Premium mode and 10 to 35 years under regular premium mode Minimum Sum Assured: Rs.1,00,000/Maximum Sum Assured: An amount equal to the sum assured under the Basic plan subject to a limit of Rs.25,00,000/taking all Term Assurance Rider Sum Assured under all policies of a life assured.

purchase the policy to the time he retires. The life cover amounts to the Sum Assured along with guaranteed additions and vested bonuses. Annuities: Receive the Sum Assured along with guaranteed additions and vested bonuses when one retire. Choose how he wants to receive his annuities. 5 options of annuity payouts: Choose

Multiples of Sum Assured: Rs.25,000/Features and Benefits: Guaranteed Additions: Guaranteed Additions @ Rs.50/- per thousand sum assured for each completed year, for the first five years. Participation in profits:

to receive his annuity out of five annuity options that come with this retirement plan. Guaranteed annum additions: on Receive the Sum

additional sums at the rate of 3.5% per compounded Assured, for the first four years. Vested bonuses: Receive these from the 5th year onwards, as an annual

The policy shall participate in profits of the compounded percentage of the Sum corporation from the 6th year onwards and shall be entitled to receive bonuses declared as per the experience of the corporation. Loan Assignment: No Loan/Assignment will be available by the corporation to the policy holders under this plan. Premiums: Tax benefits: Enjoy tax savings on the premiums you pay (under u/s 80 CCC) and tax exemptions on death benefits [under u/s 10 (10 D)].
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Assured. Death benefit: Should something

happen to you, your nominee will receive the Sum Assured along with guaranteed bonuses. additions and vested

Premiums are payable yearly, half-yearly, quarterly, monthly or through salary deduction, as opted by you, throughout the term of the policy or till earlier death. Alternatively, the premium may be paid in one lump sum {single premium}. Minimum Premium Tax Benefits: Tax relief under Section 80CCC{1} is available on premiums paid under this policy. Bonuses after the first 5 years: Minimum/Maximum Term This is a with-profit plan and participates in the profits of the corporations life insurance business after 5 years. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand sum assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. A Final {Additional} Bonus may also be payable provided a policy has run for certain minimum period. Death Benefit: The sum assured along with accrued guaranteed additions and vested simple reversionary bonuses and Final {Additional} Bonus, if any, is payable in a lump sum on death of the life assured
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Forever Life at a glance Minimum Sum Assured : RS.50000

: RS.

6000

Minimum/ maximum entry age : 20-60 years :5-30

years

Minimum/Maximum vesting age:50-70 years

during the deferment period of the policy. Benefit on Vesting: On the date of vesting you can en cash up to a maximum of 1/3rd of the amount consisting of the Sum Assured along with accrued guaranteed additions, vested simple reversionary bonuses and Final {Additional} Bonus, if any as a tax-free lump sum. The balance amount shall be compulsorily converted into an annuity at the option and the rated applicable at the time of vesting of the annuity. Supplementary/Extra Benefits: These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium Is required to be paid for these benefits.

Saven Protect Bima Bachat

LICs Bima Bachat is a money-back policy which offers financial security and It is a fixed term policy of ICICI that combines saving with life cover. In this plan, a person pay premium regularly
48

during the term,. On death of life assurance to the policy holder and his family. Bima Bachat requires the policy holder to pay only one premium. The amount paid for the premium depends on the duration of the policy taken and life insurance is available till the date of maturity. For a term 12 years: The policy holder will receive 15% of the sum assured at the end of every 3rd, 6th and 9th policy year. For a term 15 years: The policy holder will receive15% of the sum assured at the end of every 3rd, 6th, 9th and 12th policy year. For a term of 9 years: The policy holder will receive 15% of the sum assured at the end of every 3rd and 6th policy year This provides a person with features which gives you additional extended What additional benefits will one get upon maturity? If the policy holder outlives the duration of the policy, at the time of maturity, a single premium payment (excluding extra premium) is made along with loyalty additions, if any. This rider provides protection again a critical illness. Critical illness rider: term insurance cover for 5 years after maturity date of policy. Extended life cover: On the death of the life assured after age 7 age 7 years, the beneficiary will get the sum assured, the guaranteed addition at 3.5% compounded annum for the first 4 years and the vested bonuses. Once the policy matures, i.e. at the policy term a person can get the full sum assured and guaranteed addition at 3.5% compounded annually for the first 4 year as well the vested bonus. assured up to age 7 year, the basic premium paid will be returned without interest.

Eligibility Conditions and Other Restrictions: Maximum Age: 60 years

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How much insurance will policy holder get?

Maximum Age: 10 years Premium Payable: 6000.

The policy holder is insured for an amount equal to the sum assured. What about the installment received already? The insurance cover is irrespective of the installments received.

When will one be eligible for the guaranteed The guaranteed surrender surrender value? value is

available only after completion of at least one policy year. This value is equal to 90 % of the single premium paid (excluding extra premium).

What

other

benefits cover

does

this offer?

insurance

Bima Bachat is the only money-back policy that offers a loan facility. The rate of interest for this will be determined from time to time by the corporation. Presently the rate of interest is 9% p.a. payable half-yearly.
50

It also offers other benefits like the 15 day cooling off period, grace period and revival. Who is eligible for the policy? Are there other conditions or restrictions? The following are the requirements that one needs to be aware of before applying for policy: The person applying for the policy should have completed 15 years and should not be older than 66 years. The policy will mature when the person is 75 years old. There is a choice of three terms to choose from (9, 12 and 15 years) for the policy depending of on the the age and requirement applicant. this

The minimum sum that needs to be assured is Rs 20,000/- and there is no limit on the amount that can be assured. It is important to note that the sum assured should be in multiples of Rs 5000/single premium. only. The policy requires the holder to pay a

Life Guard
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The convertible term Assurance Policy:

LICs this plan of assurance is designed to meet the needs of those who are initially unable to pay the larger premium required for a whole Life or Endowment assurance policy, but hope to be able to pay for such a policy in the near future. This plan would be found useful also in cases where it is desired to leave the final decision as to the plan to a later date when, perhaps a better choice could be made. Policy holders gets an option of converting an policy into endowment assurance or limited payment whole life assurance. Accident and disability benefit rider: Suitable For: For all people with earned income under category I and unearned incomes under category II, basically standard and substandard lives attracting EMR classes I and II. Death Benefit: The sum assured is payable only in the In case an accident related an accident related death occurs while, travelling by mass surface public transport, the beneficiary gets twice the sum assured under the rider. In the event of total and permanent
52

Under this plan of ICICI, in case of the life assured during the term, the sum assured will be paid to the beneficiary. There are no maturity benefits. Hence on survival till, the policy will terminate. In this policy a person needed to pay the regular premium, for the term chosen and the person will be provided with life cover equal to the sum assured. Eligibility Conditions and Other Restrictions: Minimum term: 5 years Maximum term: 30 years Minimum premium payable: 24000/Features and benefit:

On death of the life assured due to an accident, the beneficiary gets the additional sum assured under the rider.

event of death of the life assured before the expiry of the specified term.

disability, 10% of the rider sum assured is paid out every year, for 10 years. Waiver of premium: In case of total permanent disability due to an accident, this rider would waive future premium till maturity.

Pinnacle - 2 Endowment assurance policy:

LICs this policy not only makes provisions for the family of the life assured in event of his early death but also assures a lump sum at a desired age. The lump sum can be reinvested to provide an annuity during the remainder of his life or in any other way considered suitable at that time. Premiums are usually payable for the selected term of years or until death if it occurs during the term period. ICICI Pru Pinnacle II- a unit linked insurance plan. ICICI Pru Pinnacle II is a unit linked insurance plan that offers protection for family through its life insurance cover. It also gives you the advantage of varying downside exposure to equities so that with ones protection,

investments are protected in financially volatile times. It offers a limited premium payment term while allowing one to enjoy insurance protection for a longer period. Features and benefits of ICICI Pru Pinnacle II

Suitable For:
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Being an endowment assurance policy, this plan is apt for people of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise. The amount assured if not paid by reason of his death earlier will payable at the end of the endowment term where it can be invested in an annuity provision for the rest of the policyholders life or in any other way he may think most suitable at that time.

1. Guaranteed NAV: Get the benefit of the highest NAV recorded on a daily basis, in the first 7 years of the Pinnacle II Fund, at maturity. In this product, we guarantee the highest Net Asset Value (NAV) recorded on a daily basis, in the first 7 years of launch of the Pinnacle II Fund, subject to a minimum of Rs.10. The guarantee will be applicable only at maturity. The period of 7 years starts from the date of launch of Pinnacle II Fund and will end on the completion of 7 years (from 26/10/2010 to 26/10/2017).

Features and benefits: Moderate premiums High bonus High liquidity Savings oriented.

2. Limited premium payment term: Pay premiums for only five policy years. 3. Death benefit: In the unfortunate event of death of the Life Assured, the nominee will receive Sum Assured plus Fund Value, subject to Minimum Death Benefit.

Disability Benefit: 4. Partial In case policy holder becomes totally and permanently disabled due to an accident before reaching the age of 70 and the policy is in full force, he will not be required to pay further premiums, {the Disability Benefit is available in respect of the first Rs. 20,000 sum assured on any one life and the policy will continue to be in force. 6. Loyalty Additions: Added to the fund at maturity. Calculation of the fund value for Loyalty Addition will be based
54

withdrawals: from the 6th

Ensures policy year

liquidity onwards.

5. Tax benefits: Avail tax benefits on the premiums paid and benefits received under the policy, as per the prevailing Income Tax laws

Accident Benefit: By paying a small extra premium of Rs.1 per Rs.1000/- sum assured per year he or his family are entitled to the following benefits on death or permanent disability caused by accident. Even students above the age of 18 years can avail of this benefit. Premium Stoppage: If payment of premiums ceases after at least THREE years premiums have been paid, a free paid-up policy for a reduced sum assured will be automatically secured provided the reduced sum assured , exclusive of any attached bonus, is not less than Rs.250/-. The reduced sum assured will become payable on the event as stipulated in the policy. Bonus: Is there anything extra payable besides the sum assured at that time of claim Insurance Corporation distributes its surplus among policy holder to with profits polices in the form o bonuses. Substantial bonuses have been declared in the past after valuation of policy liabilities.

on the prevailing NAV and not on the Guaranteed NAV

ICICI Pru Pinnacle II at a glance

Premium Payment Term Minimum Premium Maximum Premium Modes of Premium payment Policy Term Maximum Maturity Age Age at Minimum Sum Assured entry <45 yrs >=45 yrs Minimum SA 10 Annual Premium 7 Annual Premium * * 5 years

Rs. 50,000 p.a. Rs. 2,00,000 p.a.

Yearly 10 years (fixed) 75 years

Whole Life
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ICICI Pru Whole Life provides you with a unique double advantage of savings

Whole Life
LICs this plan is mainly devised to create an estate for the heirs of the policyholder as the plan basically provides for payment of sum assured plus bonuses on the death of the policyholder. However, considering the increased longevity of the Indian population, the Corporation has amended the above provision, thereby providing for payment of sum assured plus bonuses in the form of maturity claim on completion of age 80 years or on expiry of term of 40 years from date of commencement of the policy whichever is later. The premiums under the policy are payable up to age 80 years of the policyholder or for a term of 35 years whichever is later. If the payment of premium ceases after 3 years, a paid-up policy for such reduced sum assured will be automatically secured provided the reduced sum assured exclusive of any attached bonus is not less than Rs.250/-. Such reduced paid-up policy is not entitled to participate in the bonus declared thereafter but the bonuses already declared on the policy will remain attach, provided the policy is

and protection that not only allows you to meet your goals but also seeks to ensure that your dear ones will continue to live their lives in comfort without financial worries in case of unforeseen eventuality

You always strive to provide the best for your family, you set goals to buy a car, a house, get married, secure your childrens education, go for that dream vacation and secure a better life after retirement. Most importantly, you want to ensure your family receives all these benefits during your lifetime and also in case you are not around.

Features and benefits of ICICI Pru Whole Life

56

converted in to a paid-up policy after the premiums are paid for 5 years. Triple advantage of ICICI Pru Whole Suitable For: This policy is suitable for people of all ages who wish to protect their families from financial crises that may occur owing to the policyholders premature death. Benefits Insurance Regulatory & Development Authority (IRDA) requires all life insurance companies operating in India to provide illustrations are based on the investment rates of return set by the Life Insurance Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not intended to reflect the actual investment returns achieved or may be achieved in future by Life Insurance Corporation of India (LICI). For the year 2004-05 the two rates of investment return declared by the Life Insurance Council are 6% and 10% per annum. 3. Whole life cover benefit: You are also entitled to an additional Sum Assured payable in case death occurs after the completion of the premium paying term or on completion of 100 years of age, whichever is earlier, allowing you to leave a legacy to your dear ones. Product summary This is a whole of life assurance plan that provides financial protection against death through out the lifetime of the Life Assured. Premiums: Under Table Nos 2 & 5 the premiums are o Life cover of double Sum Assured and vested reversionary bonuses, if any, during the premium paying term o Wealth creation through regular bonus additions declared at the end of each
57

Life 1. Survival benefit: Create a corpus to meet your desired goal at the end of a chosen premium paying term. You are entitled to the chosen Sum Assured and all the bonuses declared, if any, during the premium paying term. 2. Life cover benefit: In case of your paying years, your family would receive twice the Sum Assured along with all bonuses accumulated during the premium paying term of the policy.

official illustrations to their customers. The untimely demise during your premium

Key features of the plan:

payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as opted by you. Under Table No 8 the premium is payable in one lump sum (Single Premium). Under Table No 2 the premiums are payable for a period of 35 years or up to age 80 years, whichever is later. Under Table No 5 the premiums are payable up to the selected premium paying period.

financial year o Survival benefit of Sum Assured plus vested reversionary bonuses and terminal bonus, if any, at the end of the premium paying term o Additional life cover for the chosen Sum Assured post premium payment term, for whole life o Enhanced coverage through riders

Under Table No 2 the premiums are payable for a period of 35 years or up to age 80 years, whichever is later. Under Table No 5 the premiums are payable up to the selected premium paying period. The premiums are payable for the periods as specified above or up to earlier death Bonuses: This is a with-profit plan and participates in the profits of the Corporations life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. A Final (Additional) Bonus may also be payable provided a policy has run for certain minimum period.

Accident and Disability Benefit Rider, Critical Illness Rider and an Income Benefit Rider o Avail of tax benefits on the premium paid and benefits received under the policy, as per the prevailing Income Tax laws. Service tax and education cess will be charged extra, as per applicable rates. The tax laws are subject to amendments from time to time.

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Death Benefit: The Sum Assured plus all bonuses to date is payable in a lump sum upon the death of the life assured. Maturity Benefit: This is a whole of life assurance plan and hence does not have a maturity date. You, however, have the option to take the Sum Assured plus all bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided you have attained, at least, 80 years of age. Supplementary/Extra Benefits: These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits. Surrender Value: Buying a life insurance contract is a longterm commitment. However, surrender value is available under the plan on earlier termination of the plan. Guaranteed Surrender Value: The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first years premium. In case of a single premium policy the guaranteed surrender
59

value is 90% of the single premium paid excluding any extra/additional premium.

Public Views About Both The

Companies
1. What do you consider insurance?

A. Simple Insurance B. Savings C. Investment

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S ple Insura im nce S ving a s Investm ent

According to my research 50% of people believe that insurance is only simply insurance, neither saving nor investment.

While, 38% people believe that it is one type of savins. 12%people believe that insurance is a sector where we invest for a long time.

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2. Have you taken insurance policy?

A. YES B. NO

Y ES NO

As per my result 97% people say that they have taken the policy and secured their life. But yet 3% people are such who have not taken the insurance policy.

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3. Which type of company do you prefer?

A. Private company B. Public company

Private C pany om Public C pany om

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The above figure shows that most of the people i.e. 71% have taken insurance from public sector company while only 29% of people are interested in private sector company.

4. Which insurance policy do you prefer? A. Children Plan B. Pension Plan C. Health Plan D. Protection Plan E. Special Plan F. Endowment Plan

64

C hildrenP lan P ensionP lan H lthP ns ea la P rotectionP ns la S pecial P lans E ndowm P ent lans

As per my research 32% of people want to protect their salves so they have chosen protection plans.

18% people are such who are more curious about their childrens future so they prefer children plicy. Another 18% people have prefered endowment plans.

At the same time 14% people prefer health plans. Very few people i.e. 9% prefer special plans and another 9% people prefer pension plan

5. From the following which is the best insurance company according to you?
65

A. LIC B. ICIC PRUDENTIAL LIFE INSURANCE C. OTHERS

L IC IC I P IC RUD NT E IAL L EINS IF URANC E OT E H RS

. As per my research 65% people would like to take insurance from LIC (public sector) while, 20% people prefer ICICI Prudential Life Insurance and very few people i.e. 15% prefer other companies. There are some reasons behind it which can be judge from remaining questions.

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6. Why have you choosen ICICI Prudential Life Insurance? A. Innovative plans avaible B. Indias no. 1 private life insurance company C. Good premium rate D. Quick reliable services

Innov ative plans av aible

india's no. 1 private life insurance com pany g ood prem ium rate

Quic reliable k serv es ic

From amongst the people who have chosen ICICI Prudential Life Insurance 50% of people say that they have choosen this company because of their quick and reliable services.
67

18% people have choosen ICICI Prudential Life Insurance because it is providing new innovation plans to the customers.

While 16% people have choosen ICICI Prudential life insurance because it is indias no. 1 private insurance company and another 16% people have choosen it because of its good premium rates.

7. Why you have choosen LIC? A. Government guarantee B. Good premium rate C. Variety of plans D. A trusted company

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Governm ent g uarantee Goodprem ium ra te A variety of plans A trusted com pany

Those who have choosen LIC from among them 65% people believe that there is government guarantee in public sector and they also believe that in public sector there is no risk in loosing the money.

And 22% get insured because of 50 years trust in public sector i.e. in LIC.

8% people prefer LIC because of variety of plans avaible in LIC while only 5% people are such who prefer LIC because of its good premium rates.

8. Why have you not choosen LIC? A. Delay in providing services

69

B. The Government interferance C. Slow decision making process

Delay in prov iding serv ices The Gov ernm ent interferanc e S low decis ion m akingprocess

From among the people who have not chosen LIC, 50% of them say that the reason is LICs slow decision making process.

While 25% people have not chosen LIC because of its delay in providing services; and the remaining 25% people have not chosen due to the government interference in LIC.

9. Why have you not chosen LIC?

70

A. No Government guarantee B. High penalty charges C. Profit making approach

No G overnm ent g ra ua ntee H h pena ig lty cha es rg P rofit m king a a pproa ch

Those who have not chosen ICICI Prudential Life Insurance from them 56% people believe that there are no Government guarantee in private sector i.e. ICICI Prudential Life Insurance

23% people have not chosen because of its profit making approach and the remaining 21% people have not chosen it because of its high penalty charges.

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8.FINDINGS

By doing this project I have concluded the following points:

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If we compare private and public sector company than mostly i.e. 71% people would like to invest their money in public sector. Only 29% people are such who would like to invest in private sector.

About 97% people have taken the insurance and only 3% people have not taken insurance. The major factor which influences the people are variety and innovative policies, premium rates and insurance cover.

At the same time 65% people prefer LIC due to its government assurance but there are 35% people who have not chosen it due to its slow decision making process.

20% people have chosen ICICI Prudential Life Insurance due to its reliable services. But there are 65% who have not chosen due to absence of Government assurance.

At the present period the share of LIC in the total market is better in comparison to ICICI Prudential Life Insurance.

At last we can say that mostly people would like to take insurance in public sector. But if we see the market strategy than we can conclude that the share of public sector is shifting from public to private sector.

Over and above this there are some other reasons on the basis of which we can say that both the companies i.e. private and public are growing at parallel level on the basis of following points: o Policies o Insurance Cover o Administration o Premium Rate o Marketing Strategy o Branch expansion. Name: ----------------------------------------------------------------------73

Address:

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Occupation: -------------------------------------------------------------------Sex: Income: ---------------------------------------------------------------------------------

Questions 1. What do you consider insurance?

A. Simple Insurance B. Savings C. Investment

2. Have you taken insurance policy?

A. YES B. NO

3. Which type of company do you prefer?

A. Private company B. Public company

4. Which insurance policy do you prefer?

74

A. Children Plan B. Pension Plan C. Health Plan D. Protection Plan E. Special Plan F. Endowment Plan 5. From the following which is the best insurance company according to you?
A. LIC

B. ICIC PRUDENTIAL LIFE INSURANCE C. OTHERS

6. Why have you choosen ICICI Prudential Life Insurance? A. Innovative plans avaible B. Indias no. 1 private life insurance company C. Good premium rate

7. Quick reliabl Why you have choosen LIC? A. Government guarantee B. Good premium rate C. Variety of plans D. A trusted company e services

8. Why have you not choosen LIC? A. Delay in providing services

75

B. The Government interferance C. Slow decision making process

9.Why have you not chosen LIC? A. No Government guarantee B. High penalty charges C. Profit making approach

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9. BIBLIOGRAPHY

Books: Business Environment- C.B.Gupta Financial market- Vasant Desai

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Management of banking and financial Services- Justin Paul & Padmalatha Suresh

Newspaper: Financial Express

Websites: www.licindia.com www.iciciprulife.com

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