O A C HI E V E

“T
THING”
 Group Members
 SANDIP MALAKIYA  KUNAL VED
 JASMIN TANK  KEYUR PATEL
 NARESH SOLANKI  KIRAN JAISWAL
 KULDEEP TRIVEDI  SARMAN SOLANKI
 DEEPAK CHITRODA  RAJNIKANT
 BIPIN VAVADIYA THUMMAR
 VIPUL KALATHIYA
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

1.THE
THECHANGING PRODUCT PROFILE

CHANGING PRODUCT
 BACKGROUND
PROFILE NOTE

2.PRODUCT INNOVATIONS

BACKGROUND NOTE
3.LIC REJIGS ITS PORTFOLIO

PRODUCT INNOVATIONS
4.FUTURE IMPLICATIONS

LIC REJIGS ITS PORTFOLIO
 INSURANCE

Insurance is defined as a co-operative device

to spread the loss caused by a particular risk

over a number of persons who are exposed to

it and who agree to ensure themselves against

that risk. Risk is uncertainty

 INSURANCE SECTOR
 Life Insurance is the fastest growing sector in India since
2000 as Government allowed Private players and FDI upto
26% .Life Insurance in India was nationalised by
incorporating Life Insurance Corporation (LIC) in 1956. All
private life insurance companies at that time were taken over
by LIC.
 In 1993 the Government of Republic of India appointed RN
Malhotra Committee to lay down a road map for privatisation
of the life insurance sector.
 While the committee submitted its report in 1994, it took
another six years before the enabling legislation was passed in
the year 2000, legislation amending the Insurance Act of 1938
and legislating the Insurance Regulatory and Development
Authority Act of 2000. The same year that the newly appointed
insurance regulator - Insurance Regulatory and Development
Authority IRDA -- started issuing licenses to private life
insurers.
 LIFE INSURANCE IN PRIVATE
SECTOR
 ICICI Prudential Life Insurance
 Bajaj Allianz Life insurance
 MNYL Life Insurance
 Sahara Life Insurance
 Tata AIG Life
 HDFC Standard Life
 Birla Sunlife
 SBI Life Insurance
 Kotak Mahindra Old Mutual Life
Insurance
 Aviva Life Insurance
 Reliance Life Insurance Company
Limited - Formerly known as AMP
Sanmar LIC
 Metlife India Life Insurance
 ING Vysya Life Insurance
 LIFE INSURANCE
 Provides for dependents in case of death.
 Replaces earning power, if disabled.
 Protects his/her ability to meet accumulation /
education / marriage goals.
 DIFFERENT TYPES OF LIFE
INSURANCE POLICY

 Endowment Policies
 Money Back Policies
 Term Life Policies
 Child Plan
 Health Insurance
 Pension Plan
 Single Premium
 Term Plans
 Whole Life
 WHAT IS ENDOWMENT
POLICY
 Endowment insurance are policies that cover the risk for a
specified period and at the end the sum assured is paid back to
the policyholder along with all the bonus accumulated during the
term of the policy.
 The Endowment insurance policies work in two ways , one they
provide life insurance cover and on the other hand as an vehicle
for saving.
 They are more expensive than Term policies and Whole life
policies. Normally the bonus in calculated on the sum insured but
the only draw back is that the bonuses are not compounded.
Endowment insurance plans are best for people who do not have
a saving and an investing habit on a regular basis. Endowment
Insurance Plans can be bought for a shorter duration period.
 WHAT IS TERM INSURANCE
PLAN
 Term Insurance is a no frills life insurance plans and covers you
for a term of one or more years. It pays a death benefit only if
you die in that term. Term Insurance generally offers the
cheapest form of insurance. You can renew most Term Insurance
policies for one or more terms even if your health condition has
changed. Each time you renew the policy for a new term,
premiums may climb higher.
 Term policies, cover only the risk during the selected term
period. If the policyholder survives the term, the risk cover
comes to an end.
 A Term plan is a pure risk cover plan and it meet the needs of
people who are initially unable to pay the larger premium
required for a whole life or an endowment assurance policy, but
they hope to be able to pay for such a policy in the near future.
 WHAT IS MONEY BACK PLAN
 Money back policies are quite similar to endowment
insurance plans where the survival benefits are payable only at
the end of the term period ,plus the added benefit of money
back policies is that they provide for periodic payments of
partial survival benefits during the term of the policy so long
as the policy holder is alive.
 An additional and important feature of money back policies is
that in the event of death at any time during the term of the
policy, the death claim comprises full sum assured without
deducting any of the survival benefit amounts.The insurance
premium of Money Back Policies are higher than Term
Insurance Policy because in Term Insurance there is no
survival benefits after the expiry of the insurance period.
Money Back Policies are good for people who want to Insure
their life and also want to some return from their investment's
at a later date. The return from investments in Money Back
Policies would range between 5% to 8% anually depending on
the interest rate movements.
MARKET SHARE OF INSURANCE
COMPANIES

2%2% LIC
6%
2% ICICI Pru. Life
4% 28% New York MaxLife
3% HDFC Standard Life
Alliance Bajaj
7% TATA AIG
OM Kotak Mahindra
AVIVA Life
7% 5% ING Vysya
SBI Life Insu.
AMP Sanmar
11%
Metlife
23%
 LIC- INTRODUCTION
 On January 19, 1956 the President of the Indian Union
issued an ordinance, providing for the taking over, in
public interest, of the management of life insurance
pending nationalization of such business, & the then
Finance Minister explained the objectives of
nationalization of life insurance business.
 In June 1956, the parliament passed a bill for
nationalization of life insurance business in India and
for setting up a corporation as the sole agency for
carrying on this business in India. The corporation, set
up under this Act, is known as “Life Insurance
Corporation of India”, which started functioning on
September 1, 1956.
LIC PRODUCT AND PRICING
STRATEGY
 LIC-ENDOWMENT POLICIES
 Jivan Mitra-Double cover Endowment
Plan
 Jivan Mitra-Triple Cover Endowment
Plan
 Jivan Anand Plan
 New Janraksha Plan
 Products
 Features:
1.Jivan Mitra Policy
2. Product Summary
Double Cover Plan
3. Premiums
4. Bonuses
 Benefits: 2. Jivan Mitra Policy
6. Death Benefit Triple Cover Plan
7. Maturity Benefit
8. Extra/Supplementary 3. Jivan Anand Policy
Benefit
9. Surrender Value
10. Guaranteed 4. New Janraksha
Surrender Value
11. Corporation’s Policy
Policy
on surrender value
 Plan Parameters

 Age at entry : 35 years

Policy Term : 20 Years
Mode of premium
payment : Yearly
Sum Assured : Rs.
1,00,000 /-
Annual Premium : Rs.
 LIC-TERM ASSURANCE
PLANS
 Amulya Jivan Policy
 Anmol Jivan Policy
 Convertible Term Assurance Policy
 Two Year Temporary Assurance
Policy
 Products
 Death Benefit 1.Amulya Jivan Policy
 Maturity Benefit
 Payment of 2.Anmol Jivan Policy
Premiums
 Surrender Value 3.Convertible Term
 Loan Assurance Policy
 Cooling Off Period 4.Two Years
 Grace Period Temporary Term
Assurance Policy
 Paid Up Value
 Plan Parameters- Amulya Jivan &
Anmol Jivan Policies
Minimum age at entry    18 Year
(Completed)
Maximum age at entry          60 years
(nearest
birthday)
Maximum age at maturity     70 years
Policy term                          5 to 35years
Minimum Sum Assured    
Rs.25,00,000/         

(Sum Assured shall be in multiples of

Plan Parameters-Convertible Term
Assurance Policy
Minimum
Maximum
Entry Age 20(nearer 50
years
birthday)
Sum Assured 50,000
1,00,00,00
Term 5 years 7 years

Mode of Payment -Yearly, half

yearly, quarterly,
monthly
 Plan Parameters-Two Years
Temporary Policy
Minimum
Maximum
Entry Age 18 years 60 years
(completed)
Sum Assured 50,000 1,00,000
Term 6months 2 years

Mode of Payment -Single Premium

Maximum Premium -62 years
Paying Period
Policy Loan Available -No
 LIC-MONEYBACK PLANS
 Jivan Surabhi
 Money Back Policy-25 years
 Products
 Features: 1.Jivan Surabhi Policy
2. Product Summary
3. Premiums
4. Bonuses
 Benefits:

6. Death Benefit
2. 25 Year – Money
7. Survival Benefit
8. Maturity Benefit
back Policy
9. Supplementary
Benefit
10. Surrender Value
11. Loan
 Plan Parameters-Jivan Surabhi
Policy
Minimum Maximum
Entry Age 18 (last plan 106
birthday) 55years
plan 107
50years
plan 108
50years

Sum Assured 50,000 No

Limits
Term 15 years
FixedTerms
Maximum Premium 70 years
Paying Period
 Plan Parameters-25 Year Money back
Policy
MIN MAX
Entry Age 13 (last 50 years
birthday)

Sum Assured -50,000 No Limit

Term -20 & 25years -
Maximum Premium -70 years
Paying Period
GROWTH OF LIC
BAJAJ ALLIANZ PRODUCT AND
PRICING STRATAGY
BAJAJ ALLIANZ- INTRODUCTION
 Bajaj Life Insurance Company Limited — a 74:26 joint
venture between Bajaj Auto Limited and Allianz AG,
Germany (formerly Allianz Bajaj Life Insurance Company
Limited) — under a new team headed by Sam Ghosh, CEO,
has taken the competition head-on, leaving industry watchers
surprised at its rapid pace of growth.
 Those familiar with the company divide its three year history
into the pre-Ghosh period upto December 2003 and after 1st
January 2004, when Ghosh took charge.
 Bajaj Allianz Life Insurance Co Ltd is a unique joint venture
among the global giants Allianz Group (AG) and Bajaj Auto.
Allianz AG's world ranking establishes it among the top
insurance companies in the world. Bajaj is the biggest two and
three wheeler manufacturer in the world. Bajaj Allianz Life
Insurance Company boasts of a nationwide presence with 876
offices and over 4 million satisfied customers.
 BAJAJ ALLIANZ ENDOWMENT POLICY

MIN AGE AT ENTRY 0 YEAR

MAX AGE AT ENTRY 60 YEARS

PRIMIUM PAYMENT TERM 10 & 15 YEARS

MIN AGE AT ENTRY FOR 18 YEARS

ADDITIONAL BENEFIT
MAX AGE AT ENTRY FOR 50 YEARS
ADDITIONAL BENEFIT
MIN PREMIUM 1500 YEARLY
 BAJAJ MONEYBACK POLICY
TERM CASH GAIN GOLD/PLATINU
ECONOMY M/DIAMOND
MIN SUM 15 20
50000 25 50000
ASSURED 30
MAX SUM
ASSURED N.L N.L N.L N.L
MIN AGE ENTRY N.L
15 14 13 12 18
MAX AGE ENTRY
55 50 45 40 50
MAX AGE AT
MATURITY 70 70 70 70
MIN PREMIUM 70
5000 5000 5000 5000
5000
 BAJAJ TERM LIFE POLICY

 Minimum age entry 18 year

 Maximum age entry 50 year
 Maximum age at maturity 65 year
 Minimum term 5
 Maximum term 40
 Minimum sum assured Rs. 100000
 Maximum sum assured Rs. 1000000
 Minimum premium Rs. 1500 for year, 1500 for
half year
 MAX NEWYORK LIFE - INRODUCTION
 Max New York Life Insurance Company is a joint
venture between New York Life International Inc. and
Max India Limited. New York Life, a Fortune 100
Company, is one of the world’s experts in life
insurance with over 156 years of experience in the
business and over US$ 165 billion (Rs. 775,000
Crores) in assets under management. Max India
Limited is a multi-business corporate, focused on the
knowledge, people, and service-oriented business of
life insurance
 C E Y
A N EG
R
U RA T
S
IN ST
FE G
LI ICIN
R K R
O P
Y D
E W A N
N CT
A X DU
M O
PR
 MAXNEWYORK LIFE
ENDOWMENT AGE TO 60
YEARS

Criteria Eligibility

Entry age 91 days to 50 years

Maturity age 60 years

Minimum Sum Assured Rs. 100,000

Maximum Sum Assured Rs. 5 crore

 MAX NEWYORK LIFE
MONEYBACK POLICY

Criteria Eligibility
Entry Age 21 - 60 years
Max Maturity Age 75 years
Policy Term 10 to 24 years
Premium Paying Term 11 to 26 years
Minimum Sum Assured Rs.50, 000
Maximum Sum Assured No Limit (subject to underwriting)
 MAX NEW YORK TERM LIFE
PLAN

Eligibility Criteria

Age at Entry 18 years to 55 years

Maximum Age at Maturity 60 Years

Term 5,10,15,20 or 25 years or to Age 60 Years

Sum Assured Rs. 2,50,000 to Rs. 5 Crore

Premium Payment Options Annual, Semi-annual, Quarterly, Monthly, Single

 HDFC STANDARD LIFE
INSURANCE
 HDFC Standard Life Insurance Co. Ltd. is a joint
venture between HDFC, India’s largest housing
finance institution and Standard Life Assurance
Company, Europe’s largest mutual life company.
HDFC manages Rs. 21,450 Crores in assets and
Standard Life manages over US $100 billion in
assets. Both the promoters are well known for their
ethical dealings, their financial strength and their
commitment to be a long-term player in the life
insurance industry.
 HDFC MONEY ENDOWMENT
PLAN

Plan name Benefits available (1)

Classic Basic Benefits only

Value Plan A Basic Benefits + DSA

Value Plan B Basic Benefits + DSA + ADB

Value Plan C Basic Benefits + WOP

Value Plan D Basic Benefits + WOP + DSA

Value Plan E Basic Benefits + WOP + CI

 HDFC TERM ASSURANCE
PLAN
 HDFC Term Assurance Plan : A pure
risk cover plan, which gives you protection
against the uncertainties of life.
 HDFC Loan Cover Term Assurance
Plan : An ideal way to cover your home
loan or other loan liabilities.
 Choice of premium payment options-
regular premium or a single one-time
premium.
 Choice of taking the plan on a single life
 HDFC MONEYBACK PLAN
Total Policy Death
Term Survival Benefit
Benefit

5th Within
Yr 10th Yrs. 15th Yrs. 20th Yrs. 25th Yrs. 30th Yrs. Policy
s. Term
60% + Attaching
10 40% - - - -
Bonuses

100% Sum
40% + Attaching Assured +
15 30% 30% - - -
Bonuses attaching
bonuses
25% + Attaching (Over and
20 25% 25% 25% - - above the
Bonuses
earlier
payouts)
20% + Attaching
25 20% 20% 20% 20% -
Bonuses

25% + Attaching
30 15% 15% 15% 15% 15%
Bonuses
KOTAK MAHINDRA LIFE INSURANCE
 Om Kotak Mahindra Life Insurance, a company under
Kotak Mahindra Group is a 74:26 life insurance joint
venture between Kotak Mahindra Finance Limited with
Old Mutual, U.K.
 The philosophy of Om Kotak Mahindra is helping their
customers take financial decisions at every stage in life.
Their aim is to consistently offer a wide range of
innovative life insurance products, to help their
customers remain financially independent, which is
why they believe that freedom to take life on "Jeene Ki
Aazadi"
KOTAK MAHINDRA PRODUCT
AND PRICING STRATEGY
 KOTAK ENDOWMENT PLAN

 Kotak Endowment Plan is a protection plan that

covers your life and at the same time ensures
that your money does not lie idle. It invests a
portion of your premium in financial instruments
and ensures a considerable growth in savings.
This is a participating plan (with profits).
 TERM LIFE POLICY
 How old do you have to be to avail of this
plan?
 Minimum age - 18 years
Maximum age - 65 years For what term
can I avail of this plan?10-30 years What is
the maximum age that the plan can cover
you till?75 years
KOTAK MONEY BACK PLAN

 Minimum age- 18 years

Maximum age- 60 years For what

term can I avail of this plan?15, 20 &

25 years What is the maximum age

that the plan can cover you till?75

 KOTAK TERM INSURANCE
PLAN
 Minimum age - 18 years
Maximum age - 60 years For what term can I avail of this
plan?10 - 30 years for regular premium
5 - 30 years for single premium What is the minimum
premium that I need to pay and at what intervals can I pay
them? Mode AmountQuarterly Rs.540Half
Yearly Rs.1055Annually Rs.2000Single Premium Rs.10000
What is the maximum age that the plan can cover you till?70
years