Critical Analysis Of Life Insurance Policies With Special References To ICICI PRUDENTIAL

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					                PROJECT REPORT
                       ON
“Critical Analysis Of Life Insurance Policies With
      Special References To ICICI PRUDENTIAL”




                        3
                    CONTENT
1. Introduction
2. Objectives of the study
3. Review of Literature.
4. Research Methodology
5. Analysis & Findings
6. Recommendations
7. Conclusions




                             4
                                    INTRODUCTION


WHAT IS INSURANCE?
Insurance is a contract between two parties whereby one party called the insurer,
undertakes to compensate the other party known as insured in the event of loss in
consideration of premium.
Insurance is a protection against a financial loss arising on the happening of an unexpected
event. Insurance company collects premium to provide for this protection. A loss is paid out
of this premium collected from the insuring public. The insurance company act as a trustee to
the amount collected through premium.


IT MAY BE ALSO DEFINED BY FOLLOWING WAYS
POOLING RISK
Insurance protects individual households by sharing losses resulting from the occurrence of a
risky event across large groups of households. With risk pooling, households exchange the
uncertain prospect of experiencing nothing or a large loss for the uncertainty of making
small, regular premium payments.


REDUCES VULNERABILITY
As individuals trade the uncertain prospect of a large loss in the future for the uncertainty of
much smaller, regular payments (premiums).




PROVIDES MORE COMPLETE COPENSATION
Risk pooling can provide more complete compensation than individuals' capacity to save or
repay.




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NOT FEAR ALL RISKS
Risk pooling mechanism cannot provide coverage against all economic stresses.


HISTORY OF INSURANCE
Life Insurance in its existing form came to India from the United Kingdom with the
establishment of a British firm Oriental Life Insurance Company in Calcutta in 1818
followed by Bombay Life Assurance Company in 1823.              The Indian Life Assurance
Companies Act, 1912 was the first statutory measure to regulate life insurance business.
Later in 1928 the Indian Insurance Companies Act was enacted to enable the Government to
collect statistical information about both life and non-life insurance business transacted in
India by Indian and foreign insurers including provident insurance societies. In 1938 with a
view to protecting
The interest of insuring public earlier legislation was consolidated and amended by the
Insurance Act 1938 with comprehensive provisions detailed and effective control over the
activities of insurers.
The Act was amended in 1950 resulting in far reaching changes in the insurance sector.
These included a statutory requirement of equity capital for companies carrying on life
insurance business, ceiling on share holdings in such companies, stricter control on
investments, submission of periodical returns relating to investments and such other
information to




The controller. The controller could also call for appointment of administrators and put a
ceiling on expenses of management and agency
Commission for mismanaged companies.
By 1956, 1.54 Indian insurers, 16 foreign insurers and 75 provident societies were carrying
on life insurance business in India. Life insurance business was concentrated in urban areas
and confined to the higher strata of the society.
On January 19, 1956, the management of life insurance business of 245 Indian and foreign
insurers and provident societies then operating in India were taken over by the Central



                                                6
Government. Life Insurance Corporation was formed in September 1956 by an Act of
Parliament, viz. LIC Act 1.956 with a capital contribution of Rs.50 mn.


INDIAN INSURANCE INDUSTRY


India is the world's 23rd largest insurance market. In 2000 total premiums amounted to
$9.93bn (Rs.481 bn) an amount equal to 0.41% share of the world market. Global insurers
and reinsures are gradually gaining access to the Indian insurance market with significant
potential Based on its population over one billion. It is estimated that by 2010, the industry
would have reached a market size of Rs.1.8 trillion ($37bn).


Over the past ten years, India has gradually opened its doors to foreign and domestic private
involvement and is internationally regarded as a potential business center. This is largely due
to encouraging growth figures and an expanding middle class of prospective investors.




Opportunities presented by liberalization of the insurance sector have also given way to an
increase in bank ownership of insurers. In April 2000, he Reserve bank of India increased
the limit of bank ownership from 30% to 50% and will allow investments of up to 74% on a
selective basis.


Many foreign insurers interested in undertaking business in India are attracted by the option
to invest in Indian banks and foreign banks are also seeking to enter the business. The
national reinsures General Insurance Corporation of India (GIC) will generate revenues
through a compulsory cession of 20% from all non-life providers in the Indian market.


CHALLENGES BEFORE THE INDUSTRY POST PRIVATISATION


The new as well as the old insurers will have to face a number of challenges in the liberalized
market.




                                              7
New Insurers - The new insurers will have to invest a minimum capital of Rs.100 crores.
The normal gestation period is of five years. The generation of profit normally starts in the
sixth year. Hence the new insurers will have to be ready for locking up their capital for at
least 5 years before earning any profits. Besides they will face problems of shortage of
trained manpower for the insurance industry.        The setting up of various offices and
distribution network is a time consuming process. Further the new insurers will have to
compete with the established insurance companies like LIC and GIC which have a corporate
image and market presence for several years.




EXPECTATION OF THE CONUMERS


Today LIC has more than 60 products and GIC has more than 180 products to offer in the
market.   But most of them are outdated, as they are not suitable to the needs of the
consumers. Hence old as well as new insurers will have to offer innovative products to the
consumers. The consumers are particularly expecting good pension plans, health insurance,
term insurance and investment products like unit linked insurance, from the life insurers.
Similarly the consumers expect innovative products from the general insurers for managing
healthcare, property insurance, accident insurance and other products related to the personal
line of insurance.
The consumers also expect reduction in the premium of the insurance products as the
mortality rate in India has come down by three times in the last 50 years.

DISTRIBUTION CHANNEL


In the liberalized insurance market, there will be multiple distribution channels, which will
include agents, brokers, corporate intermediaries, bank branches, affinity groups and direct
marketing through telesales and Internet. Some channels will be cheaper than others. Hence
there will be competition among the channels. The new insurers will operate with the help of
multiple distribution channels but the existing insurers may be forced to operate only with the



                                               8
help of agents. Hence, intense competition will grow among the old and new insurers in the
market to win the consumers.      This will pose a great challenge to the insurers in the
liberalized insurance market.


CONSUMER EDUCATION


Very soon the market will be flooded by a large number of products by a fairly large number
 of insurers operating in the Indian market. Even with limited range of products offered by
 LIC and GIC, the consumers are confused in the market. Their confusion will further
 increase in the face of a large number of products in the market. The existing level of
 awareness of the consumers for insurance products is very low, it is so because only 62% of
 the population of India is literate and less than IO% well educated. Even the educated
 consumers are ignorant about the various products of insurance. Hence it is necessary that
 all the insurers should undertake the extensive plan for education of consumers. The
 consumer organizations and the media also can play very important role in education of the
 consumers. This will result in expansion of the insurance market and will also enable the
 needy consumer to purchase appropriate products.


CONSUMER GRIEVANCE REDRESSAL


The insurers will have to face an acute problem of the redressal of the consumers,
 Grievances for deficiency in products and services.            The Insurance Regulatory
 Development Authority (IRDA), the regulatory body has already appointed Ombudsman
 for looking into the grievances of the policyholders; his judgment will be binding on
 insurers. Further, under Consumer Protection Act 1986, the consumer courts are operating
 at district, state and the national level. In the competitive market, awareness level of the
 consumers will increase and it will help consumers to fight for their le-al right for
 deficiency in services. Hence




                                             9
the number of legal cases filed by the consumers against insurers is likely to increase
 substantially in future. This will be a challenge to the insurers.


CHALLENGES FOR REGULATOR


The Insurance Regulatory and Development Authority (IRDA) have twin roles - regulation
as well as development. It is said that no game is possible without rules but too many rules
spoil the game.    Hence the regulator has to ensure a balance in the enactment of the
regulations. The insurance industry for its effective development needs fair competition.
This has to be ensured.
Further, a large number of insurers with initiative, commitment and financial resources
should be encouraged to enter the insurance market. The entry rules should be easy and
simple so that compliance may be easier by the potential insurers.


GUIDELINES FOR INSURANCE COMPANIES SET UP IN INDIA


The guidelines announced by IRDA have segregated holdings by Foreign Institutional
Investors (FII) from the purview of the 26 per cent foreign equity cap in insurance joint
ventures. The guidelines have also made it mandatory for the private insurance companies to
sell a percentage of their policies in the rural and social sectors. Accordingly, in the life
insurance segment, as much as 5 per cent of the policies have to be sold in the rural sector
while for the general insurance segment this limit has been kept at two per cent of the
policies sold. This has been undertaken




in the first year itself by the insurance companies. Also Life insurance companies will have
to increase their rural business from five per cent in the first year to 15 per cent in the fifth
year. In the case of general insurance, the companies have to increase their rural business
from two per cent in the first year to five per cent in the third year. IRDA has further notified
that it will take into account the paid-up equity share capital held by the foreign company
either by itself or through its subsidiary companies in the applicant insurance company in



                                               10
order to ensure that the foreign equity limit of 26 per cent is maintained by the new entrants.
Accordingly, the guidelines have specified that the paid-up equity share capital held by other
foreign investors, Non-Resident Indians (NRI's), Overseas Corporate Bodies (OCB's) and
multinational agencies in the applicant company would be within the 26 per cent limit.
However, the guidelines have clarified that the holdings of FII's in the Indian Promoter
Company and Indian mutual funds will not be taken into account while calculating the 26 per
cent limit in the JV. IRDA has also put compulsory social sector obligations on new
entrants. The companies will have to insure 5,000 lives in the social sector in the first year.
This has to gradually increase every year to 20,000 lives in the fifth year. The social sector
under the definition includes unorganized sector, economically vulnerable and backward
classes.


Existing insurance companies like state-owned LIC and GIC will have to submit application
to the insurance authority with original certificate of registration, evidence of having Rs100
crores paid.-up capital for life insurance and general insurance business.




With the increase in the life span of individuals and disintegration of the joint family system,
each Individual now has arranged insurance cover for himself and for his family. Hence,
coverage of insurers, which was around 9% of the population in 2000, has to grow very fast.
In fact all the citizens in the middle class, estimated around 314 million can afford insurance
from their own financial resources. The remaining population has to be given subsidized
insurance with the help of the government as well as the insurers.
The huge life fund can be utilized for financing the infrastructure industry as well as a
support to other industries in the country. Hence insurance industry is likely to play a key
role in changing the economic landscape of the country.          However the success of the
insurance industry will primarily depend upon meeting the rising expectations of the
consumers who will be the real king in the liberalized insurance market in future.




                                              11
CHALLENGES FOR REGULATOR


The Insurance Regulatory and Development Authority (IRDA) has twin roles - regulation as
well as development. It is said that no game is possible without rules but too many rules
spoil the game.    Hence the regulator has to ensure a balance in the enactment of the
regulations. The insurance industry for its effective development needs fair competition.
This has to be ensured.


Further, a large number of insurers with initiative, commitment and financial resources
should be encouraged to enter the insurance market.




The entry rules should be easy and simple so that compliance may be easier by the potential
insurers.


FUTURE SCENERIO OF INSURANCE INDUSTRY


The size of the existing insurance market is very large and is crowing at the rate of 10% per
year. The estimated potential of the Indian insurance market in terms of premium was around
$80 billion (Rs.3, 44,000 crores) in the year 1999. But only 10% of the market share has
been tapped by LIC and GIC and the balance 90% of the market still remains untapped. This
vast potential can be tapped only by a large number of insurers. To serve Rs100 crores of
population, Indian insurance market offers tremendous opportunities to prospective insurers
and can easily sustain about 100 insurance companies. Hence, there is scope for a large
number of Insurers. The regulator has already issued around 10 licenses to life Insurance
companies in the private sector and quite a few other companies are also in the pipeline. But
the regulator should issue licenses to a large number of insurers if the insurance market has to
grow at a fast rate.




PROBLEMS OF THE STUDY
Low level of awareness of people about life insurance who has buying capacity.
    It is important to evaluate the mindset of people for insurance industry.



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      Problem is to know which product is more accepted by which level of income.
      The customer is finding difficult in comparing these products and choosing the right
       one for him since each product is unique in itself but the deciding factor is still the
       monetary investment.




OBJECTIVES OF THE STUDY


Based on the study following, objectives have been outlined


To find out various products being offered by company.
    Targeting market according to affordable capacity, need and age.
      To know various reasons for purchasing life insurance policy.
      To discover the type of life cover preferred by the public.
      To find out the annual premium collected by the company and under unit-linked
       policies.
      To evaluate success rate of these policies




RESEARCH METHODOLOGY


Research Methodology deals with, the procedure adopted to carry out the study.


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According to “Green and Tull”

“A research design is the specification of methods and procedures for acquiring the
information needed. It is he overall operational pattern or framework of the project that
stipulates which information is to be collected from which sources by what procedures”


For conducting the study, the researcher has adopted both primary as secondary method of
data collection




PRIMARY DATA


For the purpose of collecting primary data, the researcher has adopted the method of survey.
Survey can be telephonic, by mail personal and by the diary. For the purpose of collected
detailed information, researcher has chosen surveys based on personal interview - by means
of a questionnaire.


SECONDARY DATA


It has been collected from various books and Internet sites. Researcher has adopted this
method of data collection, as the researcher liters no




access to magazines and journal but a plenty of material was available on the internet sites.


SAMPLE


Due of time and resource constraints, the sample of the study is taken as one and the
technique of sampling adopted is: convenient sampling.


PROFILE OF THE COMPANY



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To collect the primary data, the researcher has taken the help of the employees of ICICI
Prudential Life Insurance Company. As the researcher (i.e.; I) was doing the summer
training in this company, so it was easy to gather the required information through brochures,
catalogs and company reports.




HISTORY

In 1955 the INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA
LIMITED (ICICI) incorporated at the initiative of the World Bank, the Government of
India and representatives of Indian industry, with the objective of creating a development
financial institution for providing medium-term and long-term project financing to Indian
businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited.
ICICI emerges as the major source of foreign currency loans to Indian industry. Besides
funding from the World Bank and other multi-lateral agencies, ICICI also among the first
Indian companies to raise funds from International markets.

ICICI Ltd. was established in 1955 by the World Bank, the Government of India and the
Indian Industry, to promote industrial development of India by providing project and
corporate finance to Indian industry. In 1956 declared its first Dividend at 3.5%? In 1960
ICICI building at 163, BACKBAY RECLAMATION was inaugurated.ICICI has grown from
a development bank to a financial conglomerate and has become one of the largest public
financial institutions in India. ICICI has thus far financed all the major sectors of the
economy, covering 6,848 companies and 16,851 projects. As of March 31, 2000, ICICI had
disbursed a total of Rs. 1, 13, 070 crores, since inception. In 1970 ICICI sponsors the
formation of HOUSING DEVELOPMENT FINANCE CORPORATION (HDFC).
Managed its first equity public issue. In 1986 ICICI first Indian Institution




                                               15
to receive ADB Loans. First public issue by an Indian entity in the Swiss Capital Markets.
ICICI along with UTI sets up Credit Rating Information Services of India Limited,
(CRISIL) India's first professional credit rating agency. ICICI promotes Shipping Credit and
Investment Company of India Limited. (SCICI). The Corporation made a public issue of
Swiss Franc 75 million in Switzerland, the first public issue by any Indian equity in the Swiss
Capital Market. In 1987 ICICI signed a loan agreement for Sterling Pound 10 million with
COMMONWEALTHDEVELOPMENT COPORATION (CDC), the first loan by CDC
for financing projects in India. IN 1994 ICICI sets up ICICI Bank. In 1997 ICICI was the
first intermediary to move away from single prime rate to three-tier prime rates structure and
introduced yield-curve based pricing the name "The Industrial Credit and Investment
Corporation of India Limited” was changed to "ICICI Limited” ICICI announces
takeover of ITC Classic Finance. In 1999 ICICI launches retail finance - car loans, house
loans and loans for consumer durables ICICI becomes the first Indian Company to list on the
NYSE through an issue of American Depositary Shares. In 2000 ICICI Bank becomes the
first commercial bank from India to list its stock on NYSE.

ICICI Bank (NYSE:IBN) It 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

HISTORY OF PRUDENTIAL

Prudential plc. Was founded in 1848. Since then it has grown to become one of the largest
providers of a wide range of savings products for the individual including life insurance,



                                              16
pensions, annuities, unit trusts and personal banking. It has a presence in over 15 countries,
and caters to the financial needs of over 10 million customers. It manages assets of over US$
259 billion (Rupees 11, 39,600 crores approx.) as of December 31, 1999. Prudential is the
largest life insurance company in the United Kingdom (Source: S&P's UK Life Financial
Digest, 1998).

It 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.

Asia has always been an important region for Prudential and it has had a presence in Asia for
over 75 years. In fact Prudential's first overseas operation was in India, way back in 1923 to
establish Life and General




Branch agencies. Established in 1848, today Prudential plc is a leading international financial
services company with some 16 million customers, policyholders and unit holders and some
20,000 employees worldwide. In the UK Prudential is a leading life and pensions provider
with around seven million customers.

M&G was acquired by Prudential in 1999 and is the Group's UK and European fund
manager, responsible for managing over £111 billion of funds (as at December 2003).
Launched by Prudential in 1998, Egg is an innovative financial services company, with over
three million customers, with nearly six per cent of UK credit card balances.




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In Asia, Prudential is the leading European life insurer with 23 life and fund management
operations in 12 countries serving some five million customers. In the US, Prudential owns
Jackson National Life, a leading life insurance company, and has more than 1.5 million
policies and contracts in force.

The Joint Venture

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED was incorporated on
July 20, 2000. The authorized capital of the company is Rs.2300 Million. The paid up capital
is Rs. 1900 Million. The Company is a joint venture of ICICI (74%) and Prudential plc UK
(26%).The Company was granted Certificate of Registration for carrying out Life Insurance
business, by the Insurance Regulatory and Development Authority on November 24, 2000. It
commenced commercial operations on December 19, 2000, becoming one of the first few
private sector players to enter the liberalized arena.




Incorporated on July 20, 2000 it is a 74:26, joint venture between ICICI and Prudential plc of
U.K. In November 2000, ICICI Prudential Life Insurance was granted Certification of
Registration for carrying out life insurance business by the Insurance Regulatory &
Development Authority of India. The Company issued its first policy on December 12, 2000.

ICICI Prudential has consolidated its position as the leading private life insurer in India.
ICICI Prudential's annualized premium grew more than three fold over the previous year.

Continuing with its 'Customer First' philosophy, ICICI Prudential has significantly expanded
its presence to 29 operational Branches (2001-2002:16),with the Advisor Force growing to
over 18,000. Its has also strengthened its Alternate Distribution channels, i.e. Banc assurance,
Corporate Agents and Direct Marketing, making purchase of insurance more accessible.
Banc assurance and Direct Marketing channels have contributed to over 18% of the
Annualized Premium.




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ICICI Prudential was amongst the first to identify the emerging opportunity in the Pension
segment and launched two linked pension products- LifeTime Pension and Life Link
Pension, which have been well received in the market.




SUMMERY




                                            19
   A summary of the financial performance of ICICI Prudential Life Insurance is as
                                            follows

                                    ( Rupees. in million )

                       Particulars for the period ended March 31, 2007

         Particulars                         2007                               2006

Premium Income                              4176.00                           1163.00


Other Income                                120.60                             220.71


Total Income                                4424.00                           1193.71


Expenditure                                  8.63                              11.07


Net Profit/(Loss)                         (1471.82)                           (1050.98)

Share Capital                               4250.00                           1900.00




ICICI    Prudential      Life   Insurance     Company        is   a   joint    venture    between
ICICI mier financial powerhouse and plc, a Leading international financial services group
headquartered in the United Kingdom.

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


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commitment to provide leading-edge life insurance solutions. ICICI Bank has 74% stake in
the            company,            and       Prudential          plc         has         26%.
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. 6.75 billion with
ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the year ended
March 31, 2004, the company had issued over 430,000 policies, for a total sum assured of
over Rs 8,000 crore and premium income in excess of Rs. 980 crore. The company has a
network of about 30,000




advisors; as well as 12 banc assurance tie-ups. Today the company is the #1 private life
insurers in the country.



MISSION
             To be the dominant
             Life and Pension player
             Built on trust by world
             Class people and services

VISION

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

This we hope to achieve by:

         Understanding the needs of customers and offering them superior products and
          service
         Leveraging technology to service customers quickly, efficiently and conveniently.




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       Developing and implementing superior risk management and investment strategies
        to offer sustainable and stable returns to our policyholders
       Providing an enabling environment to foster growth and learning for our employees

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 and above all, building transparency in all our dealings. Stands
for, the qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where we can
play a significant role in redefining and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.


Insurance is generally classified in 3 main categories:


       1. Life insurance
       2. Health insurance and;
       3. General insurance




To get insurance of an individual or an organization can approach to an insurance company
directly, through insurance agent of the concerned


company or through intermediaries. Term is the lowest cost life insurance product available.
When you buy term life, you are purchasing "pure" insurance which typically does not
include a cash value or a savings feature. Term Life insurance, as the name implies, is
purchased for a particular "term" or length of time.


Once that term period has arrived, and you do not convert your term policy to a "permanent"
type, your life insurance policy will expire. If the




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insured dies within the "term period," the predetermined death benefit will be paid to the
beneficiaries.


LIFE INSURANCE

Your family counts on you every day for financial support: food, shelter, transportation,
education, and much more. Insurance provides you with that unique sense of security that no
other form of investment provides. It gives you a sense of financial support especially during
that time of crisis irrespective of the fluctuations in the stock market. Insurance provides for
your career goals right from your childhood years.

Life insurance is all about making sure your family has adequate financial resources to make
those plans and dreams come true. It provides financial protection to help your family or
business to manage after your death.

Or you can say that risk insurance intended as protection against the financial consequences
of the death of the insured person which takes the form of payment of a previously agreed
lump sum or pension to a beneficiary, if the insured person dies during the term of insurance.
In the case of pure life insurance, without any endowment insurance component, no
payments are due if the insured person survives the term of insurance.




PRIVATIZATION
The privatization of insurance has confirmed three propositions:
For privatization to succeed, a strong institutional framework is necessary.
         There are significant efficiency gains from privatization.
           The winners out number the losers.




                                              23
LEGISLATION


Insurance Act 1938 and Insurance Rules 1939 - regulates insurance business.
         Motor Vehicles Act 1939 and Employees' State Insurance Act 1948 - imposes
            compulsory insurance.
           Marine Insurance Act 1948 - regulates interpretation of marine policies.
           Insurance Regulatory and Development Authority (IRDA) Act, 1999 – enables.
           Indian insurance companies to transact insurance business freely in India.


REGULATION


The ratification of the IRDA bill in 1999 ended the government monopoly on the insurance
sector and established an insurance regulatory authority. The IRDA was intended to focus on
creating and enforcing a framework to promote a competitive and liberal marketplace.




THE BILL HAS ADOPTED FOUR MAIN AMENDMENTS

       To give priority to health insurance companies.
       It requires companies to invest insurance premiums in social and infrastructure
       Sectors.
       It requires companies to undertake a certain percentage of their business in the rural
        population to increase insurance penetration in the market.
       It imposes stiff penalties if a company fails to fulfill its social obligations covered in
        the first two points.


The IRDA bill also limits foreign equity in domestic companies to 26%. The minimum
capital requirement for life and non-life insurance business is $23m and for reinsurance
$46m.




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The Indian market is still dominated by the old insurance monopolies Life Insurance
Corporation of India (LIC) and the GIC. Prior to October 2000 the GIC accounted for 100%
of general insurance premiums. Despite restructuring and greater competition, the GIC is
expected to keep 75% of the market premiums in the short to medium-term.


In April 2002, India's Insurance Regulatory and Development Authority (IRDA) introduced
draft regulations that aim to ensure insurers are transparent with policyholders post-
liberalization. The draft included strict deadlines for meeting claims, grievance procedures
and clear product-related material that states the scope of cover at the point of


sale. The IRDA also issued new accounting norms that require insurers to provide data on
solvency margins, investment practices and compliance with shareholding requirements.




FEW ASPECTS OF INSURANCE PRODUCT


Policyholders should benefit from more than just the amount paid out if the insured risk
occurs.

      Providers should benefit from an additional source of income as well as the improved
       performance of the credit and savings portfolio.


      There is a complexity to the pricing and claims management




COMPONENTS OF A POLICIESHOLDERS BENEFITS


The benefits policyholders receive from insurance coverage can be thought of as a function
of four variables, namely:


The size of the insurance benefit relative to the loss resulting from the covered risk.
    Continuity of coverage.


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      Flexibility of coverage (ability to choose the amount of coverage).
      Timeliness of claims repayment.




WHY PEOPLE BUY POLICIES/INSURANCE

Life insurance is a unique asset which is a valuable addition to your overall estate due to its
potentially high yield and tax-favored benefits. Life insurance can be used for any number of
reasons. Some of the most common uses are:

      CREATING AN ESTATE where time or other circumstances have kept the estate
       owner from accumulating sufficient assets to care for his or her loved ones. Life
       insurance can create an instant estate.
      PAYING ESTATE TAXES and other estate settlement costs. These costs can vary
       from a low percentage of three to four percent to over 50% of the estate. Federal
       Estate Taxes are due nine months after death.
      FUNDING A BUSINESS TRANSFER. Business owners often agree to buy a
       deceased owner's share from his or her estate after death. Life insurance provides the
       ready cash to finance the transaction.
      FUNDING COLLEGE for children or grandchildren. Cash value increases, in a
       policy on a minor's life or the parent's life, can be used to accumulate funds for
       college.
      PAYING OFF THE SOME MORTAGE. Many people would like to pass the
       family residence to their spouse or children free of any mortgage. Often a decreasing
       term policy is used, which decreases in face amount as the mortgage balance is paid
       down.
      PROTECTING A BUSINESS From the loss of a key employee. Key employees are
       difficult to attract and retain. Their untimely death may case a severe financial strain
       on the business.




                                                 26
      CREATING A RETIREMENT FUND. Current insurance products provide
       competitive returns and are a prudent way of accumulating necessary funds for
       retirement years.
      REPLACING A CHARITABLE GIFT. Charitable Remainder Trusts provide tax
       benefits and life insurance can replace the value of the donated asset. Policies can
       also be paid directly to a charity.
      GUARANTEEING LOANS. Personal or business loans can be paid off with
       insurance proceeds.
      EQUALIZING INHERITANCES. When the family business passes to children
who are active in it, life insurance can give an equal amount to the other children.

 Term insurance is bought by millions of people for a number of reasons. Families use Term
for security. In case the insured passes away, your Term policy insures there will be money
to use to pay for your home, college, outstanding loans and other major expenses. Small
Business Owners use Term insurance as low cost debt protection to cover notes, lease
obligations, business real estate mortgages and other expenses.

Business Partnerships often use Term Insurance to buy out partners in the event of their
death. For example, the deceased's beneficiary gets the insurance proceeds and the ownership
in the company is then transferred to the remaining partner(s).

Corporations use Term as stock purchase redemptions. In this case, the corporation gets the
insurance proceeds and buys back the stock from the deceased's beneficiary, normally the
surviving spouse or estate. For Businesses, Term Insurance can provide real benefits for the
beneficiaries with no negative cash flow impact on the company.




WHEN IS INSURANCE APPROPRIATE




                                               27
Insurance is not the only mechanism for reducing vulnerability.          Targeted savings and
consumption loans are sometimes more appropriate products.


Insurance protects households against those risks that they are unable to protect themselves
through informal mechanisms, savings or credit. Insurance providers are concerned that
coverage of risks can be provided on a sustainable basis. Therefore, insurance is appropriate
when there is an overlap of perspectives of both the household and the provider.


There is a degree of uncertainty among the various sources of vulnerability for low income
households, such as life cycle events, death, disability, loss of property, etc. Poor households
may choose to withdraw from savings or manage the risk with a loan. For most lifecycle
events, the amounts are negligible, but there are occasional events such as epidemics, war,
serious natural disasters that are all considerably more risky than life cycle events. Life cycle
events are relatively predictable as compared to disability, illness or losses to property
resulting from accidents, disasters, etc. Correspondingly, the resulting losses or costs for
each of these sources of vulnerability can vary from small to very large. Insurer can help the
poor to cope with day-to-day events, but as risks tend to get more and more uncertain, the
losses increase and simple savings and loan activities may not be able to manage those
losses.




TYPES OF POLICIES OFFERED BY VARIOUS COMPANIES

Whole life policies - Cover the insured for life. The insured does not receive money while he
is alive; the nominee receives the sum assured plus bonus upon death of the insured.




                                               28
Endowment policies - Cover the insured for a specific period. The insured receives money
on survival of the term and is not covered thereafter.

Money back policies - The nominee receives money immediately on death of the insured.
On survival the insured receives money at regular intervals during the term. These policies
cost more than endowment with profit policies.

Annuities / Children's policies - The nominee receives a guaranteed amount of money at a
pre-determined time and not immediately on death of the insured. On survival the insured
receives money at the same pre-determined time. These policies are best suited for planning
children's future education and marriage costs.




Pension schemes - are policies that provide benefits to the insured only upon retirement. If
the insured dies during the term of the policy, his nominee would receive the benefits either
as a lump sum or as a pension




every month. Since a single policy cannot meet all the insurance objectives, one should have
a portfolio of policies covering all the needs.

PRINCIPALES FOR PROVIDING INSURANCE

      A large number of similar units should be exposed to the risk. Relative to total
       population.


      There should be limited policyholder control over the insured event.


      There should be existence of insurable interest, i.e. the policyholder should be the one
       who suffers the loss in the event of a risky event.


                                                  29
     Losses should be determinable and measurable.


     Losses should not be co-variant, i.e. insured risks should be unlikely to cause losses
      for a substantial portion of a population at the same time.




     Accurate information should be available to be used in setting premiums.


     Premiums should be economically affordable to potential policyholders.




NON-GOVERNMENT LIFE INSURANCE COMPANIES WORKING IN INDIA

   ICICI PRUDENTIAL LIFE INSURANCE COMPANY.
   ALLIANZ BAJAJ LIFE INSURANCE CO. LTD.
   AMP SANMAR ASSURANCE COMPANY LTD.
   BIRLA SUN LIFE INSURANCE CO. LTD.
   DABUR CGU LIFE INSURANCE COMPANY PVT. LTD.
   HDFC STANDARD LIFE INSURANCE CO. LTD.
   ING VYSYA LIFE JINSURANCE CO.PVT. LTD.
   LIFE INSURANCE CORPORATION OF INDIA.
   MAX NEW YORK LIFE INSURANCE CO.LTD.
   METLIFE INDIA INSURANCE COMPANY.
   OM KOTAK MAHINDRA LIFE INSURANCE CO.LTD.
   SBI LIFE INSURANCE COMPANY LTD.
   TATA AIG LIFE INSURANCE CO. LTD.


  GOVERNMENT LIFE INSURANCE COMPANY



                                             30
   LIFE INSURANCE CORPORATION LTD.




NON-GOVERNMENT GENERAL INSURANCE COMPANIES WORKING IN
INDIA

   BAJAJ ALLIANZ GENERAL INSURANCE CO.LTD.
   CHOLAMANDALAM GENERAL INSURANCE CO LTD.
   HDFC CHUBB GENERAL INSURANCE CO.LTD.
   ICICI LOMBARD GENERAL INSURANCE CO.LTD.
   IFFCO TOKIO GENERAL INSURANCE CO.LTD.
   NATIONAL INSURANCE COMPANY LTD.
   NEW INDIA ASSURANCE COMPANY LTD.
   ORIENTAL INURANCE COMPANY LTD.
   RELIANCE GENERAL INSURANCE CO.LTD.
   ROYAL SUNDARAM GENERAL INSURANCE CO. LTd.
   TATA AIG GENERAL INSURANCE CO. LTD.
   UNITED INDIA INSURANCE COMPANY LTD.


  GOVERNMENT NON-LIFE OR GENERAL INSURANCE COMPANY


   LIFE INSURANCE CORPORATION LTD.




  Here in this report I are considering only Life Insurance companies. Because ICICI
  PRUDENTIAL LIFE INSURANCE COMPANY LIMITED is a Life Insurance
  Company so we are taking into consideration of that companies which are offering Life
  related Policies. I are leaving that companies which are in the field of General Insurance.



                                            31
   Above I have given name of all insurance companies which are in the field of life
   insurance.
   At first I am giving description of              Policies of ICICI PRUDENTIAL LIFE
   INSURANCE COMPANY Ltd.


SECURE PLUS



Planning your financial future is absolutely essential. As you plan, you realise that the most
important aspects of your financial plan are: saving enough and providing financial security
for your family. Presenting

Secure Plus

An insurance plan that gives added protection savings and multiple options, all in one! How
does          Secure          Plus         provide        you        with         protection?
Secure Plus offers you three levels of cover (in the form of sum assured) for the same amount
of total annual contribution. You have the option to choose amongst Basic, Standard and
Enhanced level of cover, as given below:




Type of Cover            Amount of Cover
Basic                    (Term-5) x Annual Premium
Standard                 (Term) x Annual Premium
Enhanced                 (Term+5) x Annual Premium




You have the flexibility of shifting between the three levels of cover. (As per your changing
requirements). For each level of sum assured, applicable mortality charges would be
deducted from your premium. In the unfortunate event of death, your family's financial future




                                               32
is protected by an amount, which is equal to the sum of the chosen cover level and the value
accumulated in your policy.




ICICI Prudential gives you the freedom to form your very own comprehensive insurance
policy by adding the rider benefits to the basic life insurance policy. Add from the following
list of benefits to increase the scope of your policy, at a nominal cost.

CRITICAL ILLNESS RIDER

This rider provides protection against 9 critical illnesses, namely:

   1. MAJOR ORGAN TRANSPLANT
   2. COMPLETE RENAL FAILURE,
   3. STROKE,
   4. PARALYSIS,



                                                33
   5. HEART ATTACK,
   6. VALVE REPLACEMENT SURGERY
   7. MAJOR SURGERY OF THE AORTA,
   8. CAGS (BYPASS) and
   9. CANCER.

BENEFITS PAID ON CONTRACTING THE ILLNESS

Accelerated benefits (available with Save n’ Protect & CashBak)

If the policyholder is diagnosed with any of the specified illnesses, then the policyholder is
paid the entire sum assured under the rider. The policy along with all the riders (to the extent
of the Rider Sum Assured) is then




terminated. However, the remainder of the base policy continues till the end of the term. The
policyholder will have to continue paying his premiums for the remainder of the policy.

ACCRLERATED BENEFITS (available with SECUREPLUS, CASH PLUS & SECUE
PLUS PENSION) :

If the policyholder is diagnosed with any of the specified illnesses, then the policyholder is
paid the entire sum assured under the rider. The life cover along with all the riders is then
terminated. However, the policy value accumulation continues till the end of the term or
death, whichever is earlier.



STANDALONE BENEFITS (available with LIFETIME II and FOREEVER LIFE):

If the policyholder is diagnosed with any of the specified illnesses, he/she is paid the rider
Sum Assured and the rider terminates. However, the base policy continues till maturity.
Premiums paid under this rider are eligible for tax benefits under Section 80D.




                                              34
MAJOR SURGICAL ASSISTANCE RIDER

This rider provides assistance to the policyholder against 43 surgical procedures. These
surgical procedures are divided into 3 categories and the extent of assistance provided
depends on the type of procedure. Major procedures – 50% of the rider sum assured is paid.
Intermediate procedures – 30% of the rider sum assured is paid Minor procedures –




20% of the rider sum assured is paid. This benefit is payable on more than one occasion
when the life assured undergoes surgery. However the total benefit payable in case of all the
procedures is restricted to a maximum of 50% of the sum assured. Major Surgical Assistance
rider is available with Save n’ Protect, Cashbak, Lifetime II, ForeverLife, SecurePlus,
CashPlus and SecurePlus Pension. Premiums paid under this rider are eligible for tax benefits
under Section 80D.

Accident & Disability Benefit Rider:

       Benefits        payable      on       death       due       to         an   accident
        If the policyholder dies due to an accident, 100% of the rider sum assured is paid in
        addition to the basic sum assured.
       In case the policyholder dies in a land surface, mass public transport system wherein
        the policyholder was traveling as a fare-paying passenger, then 200% of the rider
        sum assured is paid.
       Benefits payable in case of permanent disability due to an accident.
       If the policyholder survives an accident but becomes permanently disabled then the
        premium for the basic plan is completely waived off to the extent of the rider sum
        assured.
       Plus, 10% of the rider sum assured is paid for the next 10 years, which helps in
        providing that extra money and takes care of sudden financial set back that occurs
        after a tragic disability.
       Accident & Disability Benefit rider is available with Save n’ Protect.



                                             35
Cashbak, SmartKid Child Plans, Lifetime II, LifeTime Pension II, ForeverLife, SecurePlus,
CashPlus, SecurePlus Pension, LifeGuard ROP and LifeGuard WROP. In case of Lifetime II,
Lifetime Pension II, SecurePlus, CashPlus, LifeGuard ROP and LifeGuard WROP, the
waiver of premium benefit is not available. Premiums paid under this rider are eligible for tax
benefits under Section 88.

ACCIDENT BENEFIT RIDER

If the policyholder dies due to an accident, 100% of the rider sum assured is paid in addition
to the basic sum assured. Accident Benefit rider is available with save n’Protect, CashBak,
SmartKid regular premium, ForeverLife, SecurePlus, CashPlus and SecurePlus Pension.
Premiums paid under this rider are eligible for tax benefits under Section 88.

INCOME BENEFIT RIDER

In case of death of the life assured during the term of the policy, 10% of the rider sum
assured is paid annually to the beneficiary, on each policy anniversary till maturity of the
rider. Income Benefit rider is available with SmartKid Child Plans, SecurePlus and CashPlus.
Premiums paid under this rider are eligible for tax benefits under Section 88.




WAIVER OF PREMIUM RIDER (WOP)

On total and permanent disability due to an accident, all future premiums for both the base
policy and rider(s) will be waived till the end of the term of the rider or death of the life
assured, if earlier. Waiver of Premium rider is available with SecurePlus, CashPlus,
LifeGuard ROP, and LifeGuard WROP, SmartKid Unit-linked regular premium II, Lifetime
II, LifeTime Pension II and SecurePlus Pension. Premiums paid under this rider are eligible
for tax benefits under Section 88.

POLICY VALUE ACCUMULATE


                                              36
At the end of every year, the company would declare a bonus interest that would be applied
on the allocable portion* of your premium. This bonus interest will have a compounding
effect on the value of your policy. The differential between the bonus interest credited and
the income earned on investments would not be more than 1%. The payment of the
accumulated value of your policy (including the bonus interest declared) is guaranteed on
maturity (termed as maturity proceeds), or in the case of unfortunate death, along with the
sum assured (the amount of cover).

What     are     the    maturity     proceeds        and   how   can   you    use     them?
Maturity proceeds are the accumulated value of your policy at the time of maturity. However,
if the value of your investment is more than the accumulated value of your policy then that
too will be paid at the time of maturity.




You have the unique flexibility of receiving your maturity proceeds as a lump-sum or in
equal annual installments over 3 or 5 years which can be decided by you at maturity. In case
of death, the remaining amount would be paid back. There is no life-cover during this
withdrawal period.

SECUREPLUS CAN BE APPLICABLE FOR

Any person-aged up to 60 years can apply for SecurePlus. The maximum age at which cover
ceases is 75 years of age. The minimum term of the product is 10 years and the maximum
term would be 30 years.

SecurePlus has a minimum annual premium of Rs.6, 000, a half yearly premium of Rs. 3,000
and monthly premium of Rs.500.

SECUREPLUS BE DISCONTINUED

SecurePlus acquires a paid-up value after three policy years' premiums are fully paid. The
paid up value will be the higher of the accumulated value of your policy and the investment
value of the accumulated value at the time of death or maturity. The guaranteed surrender


                                                37
value will be 35% of all premiums paid excluding the 1st year premium, all extra premiums
and premiums for rider benefits. In addition, the company may provide the current non-
guaranteed surrender values as specified from time to time on request.




LOAN ON SECURE PLUS

SecurePlus provides a loan to policyholders, once the product is paid up. The loan amount
would depend upon the paid-up value of the policy. Interest applicable from time to time
would be charged on the loan amount.

THE ADDITIONAL BENEFITS THAT SECUREPLUS PROVIDE

For extra protection, SecurePlus offers the add-on value of the following riders which I have
discussed earlier these are the additional benefits for the customer or you can say the extra
protection.

      Critical Illness Rider
      Major Surgical Assistance Rider
      Accident and Disability Benefit Rider
      Accident Benefit Cover
      Income Benefit Rider
      Waiver of Premium Rider.

   THE SUM ASSURED UNDER THE RIDERS CANNOT EXCEED THE BASE
   SUM ASSURED.




                                             38
*INVESTMENT OF PREMIUMS

The premiums paid by you would be invested after deducting the charges involved in the
product. These costs are related to policy issuance, administration and servicing. In addition
to this would be the cost of mortality.

MORTALITY CHARGES

The mortality would be charged on an annual basis from the contribution. This is an
illustration of mortality rates per thousand for some ages, based on current level of charges.




  Age                           25 years 30 years 40 years 50 years


  Mortality rate/ 000's of SA Rs. 1.46     Rs. 1.48   Rs. 2.54   Rs. 6.05




An amount of 43% of your premium in the first year, 85% in the 2nd and 3rd year and 95%
from the 4th year onwards, would be used for investment to provide you with returns. There
is also a fixed charge of Rs.300 per annumInvestment Objective: The investment objective of
this plan is to provide a balanced investment between long-term capital appreciation and
current income while protecting the capital. Investment




                                              39
will be in fixed income instruments as well as equity in appropriate proportions depending on
market conditions prevalent from time to time.

INDICATIVE PORTFOLIO ALLOCATION

Debt, Money Market & Cash: Minimum 80%

Equity & equity related securities: Maximum 20%

For the first year, there is a guarantee of 4% of bonus credit on the invested premium.

The investment administration charges would be an amount equal to 1.25% of the investment
value. The company shall refund the premium paid by the investors, after deducting certain
charges. These charges include a proportionate risk premium for the period of cover, the
stamp duty on the policy and/ or any expenses borne by the Company on the medical
examination.

CASH PLUS

The road to the customer/investors financial goals has many twists, turns and probably a few
unexpected roadblocks. Balancing the needs of savings and protection are major
considerations in customers financial planning. Liquidity with the investors/customers
savings is also important to take care of milestones in customers/investors life.




PRESENTING CASH PLUS

An insurance plan that gives added protection savings, multiple options, plus the power of
liquidity.




                                               40
CASH PLUS PROVIDE PROTECTION

CashPlus offers you three levels of cover (in the form of sum assured) for the same amount
of total annual contribution. You have the option to choose amongst Basic, Standard and
Enhanced           level         of         cover,          as         given          below:




Basic         (Term-5) x Annual Premium
                                                                                          Yo
Standard      (Term) x Annual Premium
                                                                                           u
Enhanced      (Term+5) x Annual Premium
                                                                                         hav
e the flexibility of shifting between the three levels of cover. (As per your changing
requirements). For each level of sum assured, applicable mortality charges would be
deducted from your premium. In the unfortunate event of death, your family's financial future
is protected by an amount, which is equal to the sum of the chosen cover level and the value
accumulated in your policy.




                                             41
POLICY VALUE ACCUMULATE

At the end of every year, the company would declare a bonus interest that would be applied
on the allocable portion* of your premium. This bonus interest will have a compounding
effect on the value of your policy. The differential between the bonus interest credited and
the income earned on investments would not be more than 1%. The payment of the
accumulated value of your policy (including the bonus interest declared) is guaranteed on
maturity (termed as maturity proceeds), or in the case of unfortunate death, along with the
sum assured (the amount of cover).




THE MATURITY PROCEEDS AND COMPARE




                                            42
Maturity proceeds are the accumulated value of your policy at the time of maturity. However,
if the value of your investment is more than the accumulated value of your policy then that
too       will        be        paid        at        the       time        of       maturity.
Customer have the unique flexibility of receiving your maturity proceeds as a lump-sum or
in equal annual installments over 3 or 5 years which can be decided by you at maturity. In
case of death, the remaining amount would be paid back. There is no life-cover during this
withdrawal period.

GET ADDED ADVANTAGE OF LIQUIDITY

With CashPlus you have the option of withdrawing from the accumulated value of your
policy every year, after the first five years of the policy. It gives you an option to withdraw
up to 10% of the accumulated value of your policy till that year. This helps you in taking care
of your liquidity expenses and planning for milestones in your life.

PROCESS FOR APPLYING CASHPLUS

Any person-aged up to 60 years can apply for CashPlus. The maximum age at which cover
ceases is 75 years of age. The minimum term of the product is 10 years and the maximum
term would be 30 years. CashPlus has a minimum annual premium of Rs. 8,400, a half yearly
premium of Rs. 4,200 and monthly premium of Rs.700.




CASH PLUS CAN BE DISCONTINUED

CashPlus acquires a paid-up value after three policy years' premiums are fully paid. The paid
up value will be the higher of the accumulated value of your policy and the investment value
of the accumulated value at the time of death or maturity. The guaranteed surrender value
will be 35% of all premiums paid excluding the 1st year premium, all extra premiums and
premiums for rider benefits. In addition, the company may provide the current non-
guaranteed surrender values as specified from time to time on request.


                                                 43
LOAN CAN BE TAKEN ON CASHPLUS

CashPlus provides a loan to policyholders, once the product is paid up. The loan amount
would depend upon the paid-up value of the policy. Interest applicable from time to time
would be charged on the loan amount.

THE ADDITIONAL BENEFITS THAT CASHPLUS PROVIDE

For extra protection, CashPlus offers the add-on value of the following riders#:

      Critical Illness Rider
      Major Surgical Assistance Rider
      Accident and Disability Benefit Rider
      Accident Benefit Cover
      Income Benefit Rider




      Waiver of Premium Rider.
      The sum assured under the riders cannot exceed the base sum assured. (Which I have
       discussed above & what are the riders and how it can be beneficial for the customers)

INVESTMENT OF PREMIUMS

The premiums paid by you would be invested after deducting the charges involved in the
product. These costs are related to policy issuance, administration and servicing. In addition
to this would be the cost of mortality.

MORTALITY CHARGES

The mortality would be charged on an annual basis from the contribution. This is an
illustration of mortality rates per thousand for some ages, based on current level of charges.




                                              44
Age                                 25 years        30 years      40 years       50 years

Mortality rate / 000's of SA        Rs. 1.46        Rs. 1.48      Rs. 2.54       Rs. 6.05




An amount of 43% of your premium in the first year, 85% in the 2nd and 3rd year and 95%
from the 4th year onwards, would be used for investment to provide you with returns. There
is also a fixed charge of Rs.300 per annum.




INVESTMENTS OBJECTIVE

The investment objective of this plan is to provide a balanced investment between long-term
capital appreciation and current income while protecting the capital. Investment will be in
fixed income instruments in appropriate proportions depending on market conditions
prevalent from time to time.

INDICATIVE PORTFOLIO ALLOCATION

Debt, Money Market & Cash: Minimum 100%

For the first year, there is a guarantee of 4% of bonus credit on the invested premium.

The investment administration charges would be an amount equal to 1.25% of the investment
value.

Free Look period: Same as in other policies.

LIFE TIME

Life is about changes. Some customer expects - marriage, children, retirement…and some
customer don’t - sickness, disability, and death. The ICICI Prudential, believe that life should




                                               45
not have to be about fear of the unexpected and that you should be in control so as to
overcome them. To be in total control of life’s situations you need total flexibility.




A POLICY THAT MEETS CUSTOMERS CHANGING NEEDS OVER A LIFETIME

Statement of ICICI PUDENTIAL CATELOQUE “Your need for insurance is important, to
protect your family but you also have an equal need to invest your money for greater
returns”.

BALANCE BETWEEN COMPETING NEEDS

Welcome to a new horizon in financial planning. LifeTime gives you the flexibility and
control in meeting your protection and investment needs. With this plan you have the
freedom to direct your investment to get the benefit of market linked returns and choose the
level of protection. And because you’re in charge you can accommodate your changing
needs.

But that’s not all. You can do all this too:

            Vary the amount of insurance protection vis-à-vis investment while maintaining
             the same premium.
            Enhance insurance protection by adding Accident & Disability Benefit Accident
             Benefit, Major Surgical Assistance, Critical Illness benefits at a nominal extra
             premium.
            Top up your investment with a lump sum payment at any time.
            Switch between our choice of plans – Maximiser (Growth), Balancer (Balanced)
             and Protector (Income).
            Enjoy tax benefits on the premium paid.


                                               46
PROCESS TO START

You      can      open      an       account    with     a     Minimum        Premium       of
Rs 18,000/- p.a. for annual mode. Rs 9,000/- per half year for half-yearly mode Rs 1,500/-
per month for monthly mode.

PLANING PROCESS

You can choose a specified level of protection according to your need. Part of the premium
paid will be used to pay for the death benefit and the rest is invested in plan of your choice.
Entry into the plan will be based on the Unit Value applicable on the date of policy issue.
The amount of premium towards death benefit decreases with the increase in the value of the
units.

BENEFITS

DEATH BENEFITS

In case of the unfortunate event of death, your near and dear ones are spared an uncertain
future. The nominee/s will receive the death benefit chosen (less any withdrawals) or value
of the units, whichever is higher.

WITHDRAWAL BENEFITS

There is no maturity date. Anytime after 3 years of commencement (provided you have paid
premium for 3 full years) you can make withdrawals through partial or complete surrender of
units.




CUSTOMERS FLEXIBILITY OPTION


                                               47
CUSTOMER CAN CHOOSE THE KIND OF BENEFITS OR RETURNS HE WANTS

      MAXIMISER (GROWTH)

If high growth is your priority, this is the plan for you. You can enjoy long-term capital
appreciation from a portfolio that is invested primarily in equities and equity-related
securities. In line with the objective, the asset allocation in this fund is: Equity and related
security (maximum 100%) and Debt, Money Market and Cash (maximum 25%).

      PROTECTOR (INCOME)

If your priority is steady returns with moderate risk, you can opt for this plan. In line with
the objective, the asset allocation of the fund is: Debt instruments (maximum 100%) and
Money Market and Cash (maximum 25%).

      BALANCER (BALANCED)

If you prefer a balance of growth and steady returns, choose our Balancer plan. This fund
invests in equity and equity linked securities, as well as in fixed income securities. In line
with the objective, the asset allocation in this fund is: Equity and related security (maximum
40%)      and      Debt,      Money       Market       and      Cash      (minimum        60%)
For all calculation purposes, the existing NAV of the funds as of that day would be
considered.

POTENTIAL RISK /REWARD GRAPH




                                              48
IF CUSTOMER WANTS TO CHANGE HIS INVESTEMENT OPTION LATER

If at a later stage your financial priorities change, you can switch between the various plans
options, and we also let you do this absolutely free once a year.

IF CUSTOMER HAVE MORE INVESTIBLE FUNDS AT THE YEAR-END THAT
HE HAD CALCULATED

You can top up your investment (minimum Rs 10,000) at any time when you have surplus
funds.




IF CUSTOMER FEEL TO INCREASE HIS PROTECTION

At various stages of your life your liabilities may increase - marriage, children, a new home,
children going off for higher studies…LifeTime lets

you increase your death benefit without any underwriting during specialevents3 or every third
year up to 3 times. This increases @ 25% of original death benefit or Rs. 1, 00,000
whichever is lower each time. You can also increase your protection at other times or for
higher levels subject to underwriting rules.



                                               49
IF CUSTOMER WANTS TO DECREASE THE DEATH BENEFITS

Over time your liabilities may decrease too, as various loans get paid off your children
become independent and so on. So, if you want to decrease your death benefits you can do
that too, at any time.

IF THE CUSTOMER ANABLE TO PAY THE PREMIUMS

If after at least 3 years payments are made and you are unable to pay the subsequent
premiums, the cover under the policy will continue and the premiums towards the life cover
and riders will be debited from the unit fund.




CUSTOMER IS GETTING ADD-ONS

We ensure that you are prepared for any eventuality, with a choice of riders along with the
death benefits.

             Accident and Disability cover
             Critical Illness Benefit
             Major Surgical Assistance Benefit

UNIT VALUE CALCULATION

Unit value is calculated bi-weekly on a forward pricing basis every Tuesday and Friday

UNIT VALUE=

Market/ Fair Value of the relevant Plan’s Investments plus                          Current
Assets less Current Liabilities and Provisions.


            Number of Units outstanding under the relevant Plan




                                                 50
TAX BENEFITS

Tax benefits are available under Sec 88 and Section 10 (10D), as per the prevailing Income
Tax laws.

LIMITS /CONDITIONS APPLICABLE

AGE AT ENTRY

Minimum          age        at       entry:        0      years        (completed         years)
Maximum age at entry: 60 years (completed years)

CHARGES

      The initial administrative charges in the 1st year would be 20% of the premium, for
       premium amounts less than Rs.50, 000/-. For premiums equal to or more than Rs.50,
       000/-, it is 18% of the premium. In the 2nd year, the charges are 7.5% of the
       premium. From 3rd year onwards 4% of premium will go towards charges.
      Other Charges: Annual administrative charges of 1.25% of net assets for each of the
       funds - Protector (Income), Maximiser (Growth) & Balancer (Balanced). Annual
       investment charge of 0.25% per annum of the net assets for Protector funds and 1%
       per annum of net assets for Maximiser & Balancer options.

Note: In case the unit value is inadequate to cover charges, the policy will terminate.

FREE LOOK PERIODS

Same as in other policies. In case of a market linked policy, your units will be repurchased by
the company at the unit value determined on the Valuation Date following the date of
cancellation after deducting the charges mentioned above.

SAVE'n'PROTECT (ENDOWMENT ASSURANCE WITH EXTENDED LIFE
COVER)




                                              51
Being the head of the family requires that you bear quite a few responsibilities. Some of
these include: being able to fund your child's higher education, your daughter's wedding, and
your own cozy nest and realize all your other dreams. This is an ideal plan for those who
want to accumulate funds on a regular basis while enjoying insurance protection.

FUNCTION OF Save’n’Protect



It is a fixed term policy that combines savings with life cover.

It is a fixed term plan in which you pay premium regularly during the term. The plan
provides with a guaranteed addition (GA) of 3.5% compounded annually for the first 4 years
of the plan and thereafter bonuses (Vested bonuses) will be applicable as per the performance
of the company.

Once the policy matures, i.e. at the end of the term, you can get the full sum assured and
guaranteed additions as well as the vested bonuses. In addition, you will get an extended term
insurance cover for five years after the maturity date of the policy for 50% of the sum
assured.      You     will   not     have   to    pay   any        premium   for   the   same.



THE ADD-ONS THAT A CUSTOMER CAN OPT

Riders are the additional benefits that you can add on to your policy. You can opt for riders
when taking the basic policy at a marginally incremental cost. No bonuses are paid on the
riders.

A Customer can opt for one or more RIDER

         Accident & Disability Benefit
         Accident Benefit Rider
         Critical Illness Benefit
         Major Surgical Assistance



                                                 52
However, during the tenure of extended life cover, no rider benefits are available to you. The
health add-ons (Major Surgical Assistance Benefit and Critical Illness Benefit) are eligible
for tax benefits under Sec 80D. The other add-ons (Accident & Disability Benefit and
Accident Benefit Rider) when attached to Save'n'Protect is eligible for tax benefits under Sec
88, as per the prevailing income tax laws.

APPPLICABLE FOR

You can apply if you are in the age group of 0 to 60 years. The maximum cover-ceasing age
is 70 years. The minimum sum assured you should apply for is Rs. 50,000 and the minimum
term is 10 years. The minimum premium is Rs.6, 000 p.a.

LOAN AGAINST POLICY

Customer can avail of a loan under the policy, to meet his requirements. This will be
dependent on the surrender value his policy acquires. Interest is charged on the amount of
loan availed.

PAYMENT OF PREMIUMS

Customer can opt for the yearly, half - yearly & monthly mode of premium payment. The
monthly mode is only available through ECS (Electronic Clearing Service)

TAX BENEFITS

Tax benefits are available under Sec 88 and Section 10 (10D), as per the prevailing Income
Tax laws.

IF CUSTOMER WANTS TO DISCONTIUE POLICY

Customer’s policy acquires a paid up value after premiums are paid for three years. A
guaranteed surrender value is payable to him, if he decide to terminate the policy after 3
years premiums are paid. However, the insurance protection provided under this policy will
also cease.



                                             53
EXCLUSION CLAUSES THAT APPLY

If the Life assured commits suicide whether sane or insane, within one year from the date of
commencement of the policy, the policy shall be void and the premiums paid hereunder will
be refunded after deducting the expenses incurred by the Company for the issue of the policy.




CASHBAK (ANTICIPATED ENDOWMENT ASSURANCE)

As an individual you have to be financially prepared for various milestones in your life. If
you are newly married, you need to plan for a baby a few years from now. If you have
teenage children you need to plan for their university education. What you need is a plan to
meet your periodic financial requirements with the added benefit of insurance protection.


FUNCTION OF CASHBAK

It is a three in one plan that combines savings, liquidity and protection through the following:

      Fixed term of 15 or 20 years.
      Survival benefits payments at regular intervals.
      Premiums are payable throughout the term of the policy.

FUNCTION
The survival benefits available to you are as follows:

    Policy Term                15 years              Policy Term                20 years

   At end of year         Survival Payment          At end of year         Survival Payment
                         as a % of basic sum                              as a % of basic sum
                               assured                                          assured




                                               54
                        Survival        Payment                                 Survival     Payment
At end of year          as a % of basic sum At end of year                      as a % of basic sum
                        assured                                                 assured

3                       10%                            4                        10%


6                       15%                            8                        15%


9                       20%                            12                       20%


12                      25%                            16                       25%

                        50%                    plus                             50%               plus
                        guaranteed                                              guaranteed
15(Maturity)                                           20 (maturity)
                        additions              plus                             additions         plus
                        vested bonuses.                                         vested bonuses.




On the death of the life assured, the beneficiary will get the sum assured, the guaranteed
additions and the vested bonuses. The plan provides guaranteed addition (GA) of 3.5%
compounded annually for the first 4 years of the plan and bonuses thereafter (Vested
bonuses)    will   be      applicable     as     per       the    performance   of    the    company.



THE ADD-ONS THAT A COSUMER CAN OPT

Riders are the additional benefits that you can add on to your policy. You can opt for riders at
the time of taking the basic policy at a marginally incremental cost. No bonuses are paid on
the                                                                                            riders.
customer     can     opt      for       one      or        more     of    the    following     riders:




                                                  55
      Accident & Disability benefit.
      Accident benefit.
      Critical Illness Benefit.
       Major Surgical Assistance.

The health add-ons (Major Surgical Assistance Benefit and Critical Illness Benefit) are
eligible for tax benefits under Sec 80D. The other add-on (Accident & Disability Benefit and
Accident Benefit) when attached to CashBak are eligible for tax benefits under Sec 88.

APPLICABLE FOR

You can apply if you are 16 years old and no older than 55 years. The minimum sum assured
you should apply for is Rs.75, 000. The minimum premium amount is Rs.6, 000 p.a.As an
individual you have to be financially prepared for various milestones in your life. If you are
newly married, you need to plan for a baby a few years from now. If you have teenage
children you need to plan for their university education. What you need is a plan to meet your
periodic financial requirements with the added benefit of insurance protection.

FUNCTION OF CASHBAK

It is a three in one plan that combines savings, liquidity and protection through the following:

      Fixed term of 15 or 20 years.
      Survivals benefit payments at regular intervals.
      Premiums are payable throughout the term of the policy.

FUNCTION The survival benefits available to you are as follows:


Policy Term             15 years                 Policy Term             20 years




                                              56
                           Survival      Payment                                Survival     Payment
At end of year             as a % of basic sum At end of year                   as a % of basic sum
                           assured                                              assured


3                          10%                          4                       10%

6                          15%                          8                       15%

9                          20%                          12                      20%

12                         25%                          16                      25%
                           50%                  plus                            50%               plus
                           guaranteed                                           guaranteed
15(Maturity)                                            20 (maturity)
                           additions            plus                            additions         plus
                           vested bonuses.                                      vested bonuses.




On the death of the life assured, the beneficiary will get the sum assured, the guaranteed
additions and the vested bonuses. The plan provides guaranteed addition (GA) of 3.5%
compounded annually for the first 4 years of the plan and bonuses thereafter (Vested
bonuses)      will    be    applicable     as     per       the   performance   of    the   company.


ADD-ONSTHAT A CUSTOMER CAN APPLY FOR

Riders are the additional benefits that you can add on to your policy. You can opt for riders at
the time of taking the basic policy at a marginally incremental cost. No bonuses are paid on
the                                                                                            riders.
You can opt for one or more of the following riders

         Accident & Disability benefit.
         Critical Illness Benefit
         Major Surgical Assistance




                                                   57
The health add-ons (Major Surgical Assistance Benefit and Critical Illness Benefit) are
eligible for tax benefits under Sec 80D. The other add-ons (Accident & Disability Benefit
and Accident Benefit Rider) when attached to CashBak are eligible for tax benefits under Sec
88, as per prevailing income tax laws.

THIS IS APPLICABLE FOR

You can apply if you are 16 years old and no older than 55 years. The minimum sum assured
you should apply for is Rs.75, 000. The minimum premium amount is Rs.4, 800 p.a.




LOAN AGAINST POLICY

No loans are available under this policy.

PAYMENT OF PREMIUMS

You can opt for the yearly, half - yearly & monthly mode of premium payment. The monthly
mode is only available through ECS (Electronic Clearing Service)

TAX BENEFITS

Tax benefits are available under Sec 88 and Section 10 (10D), as per the prevailing Income
Tax laws.

POLICY CAN BE DISCONTINUED

Yes, you can discontinue your policy after premiums are paid for three years. A guaranteed
surrender value is payable to you, if you decide to terminate the policy after 3 years
premiums are paid. However, the insurance protection provided under this policy will also
cease.


EXCLUSION CLAUSES




                                            58
If the Life assured commits suicide whether sane or insane, within one year from the date of
commencement of the policy, the policy shall be void




PROTECTION PLANS

We all hope to live a full life till a ripe old age... to ensure our children's sustenance and
healthy growth. But what if a sudden disability or illness strikes? Besides the grief and the
pain, such an event also completely disrupts life for all the people who are financially
dependent on the company. ICICI PRUDENTIAL life insurance policies offer a
comprehensive range of protection benefits:

LIFEGUARD

Happiness and security for our family is what all of the company want. However, the
uncertainties of life often worry the company. The thought of unfortunate events befalling the
company may cause anxiety about our ability to provide for our loved ones. This is especially
the case if we are no longer there to provide for them. Insurance can help ease worries. It
ensures that your loved ones are adequately provided for and that their lives are not affected,
even if you are not around.

ICICI Prudential Life Insurance, India's No. 1 private life insurance company,
presents LifeGuard. Choose from three term plans to insure your life and provide total
security to your family, at a very affordable cost.

      Level Term Assurance
      Level Term Assurance with Return of Premium
      Single Premium




                                               59
TERM ASSURANCE

Under this plan, in case of death 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 maturity, the
policy will terminate.

You will need to pay the regular annual premium, for the term chosen. You will be provided
with life cover equal to the Sum Assured.



LEVEL TERM ASSURANCE WITH RETURN OF PREMIUM


If the customer selects this plan, he will need to pay a regular annual premium for the term
chosen. He will be provided with life cover equal to the Sum Assured. In case of death of the
life assured during the term, the Sum Assured under the plan will be paid to the beneficiary.
On survival till maturity, all the premiums paid, will be returned.


EXTENDED LIFE COVER

The plan also offers the unique feature of an additional extended cover for 5 years after
maturity of the policy, for 50% of the Sum Assured. This provides additional protection,
even after the Premium Paying Term.

SINGLE PREMIUM

This is a single premium variant of the LifeGuard Level Term plan. You will need to make a
one-time premium payment, depending on the term and Sum Assured chosen by you. The
minimum Sum Assured is Rs. 2.5 lakhs.


                                               60
In case of death of the life assured during the term, the Sum Assured under this plan will be
paid to the beneficiary. There are no maturity benefits, at the end of the term.

APPLICABLE FOR

FOR LIFEGUARD LEVEL TERM ASSURANCE

Applicants should be between 18 and 55 years of age. The minimum term is 5 years and the
maximum term is 30 years, which is subject to a maximum of 65 years of age. The minimum
premium payable is Rs. 2,400 per annum.

FOR LIFEGUARD LEVELTERMASSURANCEWITH RETURN OF PREMIUMS

Applicants should be between 18 and 55 years of age. The minimum term is 10 years and
the maximum term is 30 years, which is subject to a maximum of 65 years of age. The
minimum premium payable is Rs. 2,400 per annum.

FOR LIFEGUARD SINGLE PREMIUMS

Applicants should be between 18 and 55 years of age. The minimum term is 3 years and the
maximum term is 15 years, which is subject to a maximum of 65 years of age.

ADDITIONAL FEATURE OF LIFEGUARD

For added protection of your family against any unfortunate eventualities, LifeGuard offers
you the following:




         Accident and Disability Rider
         Waiver of premium

Note: the Riders mentioned above are not available with the Lifeguard Single Premium
policy.


                                               61
Tax benefits under section 88 and section10 (10D) as per the prevailing Income Tax laws.

POLICY CAN BE DISCOTINUED

In case you wish to surrender LifeGuard Level Term Assurance and Single Premium Plans,
no surrender value is available. However, on surrender of LifeGuard Level Term Assurance
with Return of Premium, a guaranteed surrender value is payable to you. This is only
applicable once three years’ of premium are paid.

INVESTMENTS PLANS

Often you may have some investible funds lying idle - a bonus or maybe a windfall. You can
either secure your family through insurance or invest it for growth. The need for insurance is
crucial but you also want to see your money grow through market investments. But in
volatile market conditions .




BOTH ARE SECURE

Relax, because now you can hedge your investments with safer investment vehicles that
provide you with a diversified portfolio.

ICICI Prudential Life Insurance presents Investment Solutions, which provide you high
returns, while guaranteeing complete peace of mind.




                                             62
This follows from our understanding that life has many facets and they are manifested
through its various needs. Therefore our philosophy is to provide you with comprehensive
insurance solutions that cater to your dual needs of earning potentially high returns as well as
stay insured for life. Thus we offer you Investment Solutions that combine the best of
insurance and investment.

LIFELINK

An investment plan that gives you the flexibility of choosing your investment options while
keeping you insured for life.

Depending on the customer needs, Investment Plans could allow him to do one or more of
the following:

Plan for Tangibles: buy that fashionable car, that huge refrigerator, etc.

Earn Market-linked Returns: earn market-related returns while your family remains
protected, even in volatile market conditions.




LIFELINK PLANNING

Maintain your lifestyle - even if your income was to reduce in the future.

Legacy Creation: buy property; invest in shares, bonds, etc. for your children or
grandchildren.

LIFELINK (SP)




                                                 63
Often you might have some investible funds lying idle - a bonus or maybe a windfall. You
can either secure your family through insurance or invest it for growth. The need for
insurance is crucial but you also want to see your money grow through market investments.
But, in volatile market conditions.

BOTH ARE SECURE

LifeLink allows you to enjoy both the benefits! A unique plan that combines the security of a
life insurance policy with the opportunity of enjoying high returns on your investments.
Without the market risks compromising the protection of your family!




LIFELINK

      Provides death benefit security to your family.
      Brings you additional income on funds that might have languished in your savings
       account.
      Enables you to enjoy the upside of market returns, while protecting your family from
       the downsides.

CHILD PLAN

As a responsible parent, customer will always ensure a hassle-free, successful life for your
child. However, life is full of uncertainties and even the best laid plans can go wrong. Here's
how he can give your child a 100% safe and assured tomorrow, whatever the uncertainties.
Smart Kid Child Plans are designed to provide flexibility and to safeguard thier child's future
education and lifestyle, taking all possibilities into account.



                                                64
Presenting SmartKid Child Plans. Leave nothing to chance

SmartKid Child Plans offers three products:

      Unit-linked Regular Premium
      Unit-linked Single Premium
      Regular Premium SmartKid




REGULAR PREMIUM SMARTKID

UNIT-LINKED REGULAR PREMIUM

Financial benefits when you require them With the ever-increasing cost of education, the
financial requirements for your child's career would change from time to time. This plan
provides you with the flexibility of withdrawals whenever you require them! It allows you a
maximum of 5 withdrawals, the amounts of which are as follows:




Withdrawal                           Amount of withdrawal
1st Withdrawal                       Up to 20% of the Accumulated Value*
2nd Withdrawal                       Up to 25% of the Accumulated Value*
3rd Withdrawal                       Up to 30% of the Accumulated Value*
4th Withdrawal                       Up to 35% of the Accumulated Value*
5th Withdrawal                       Up to 40% of the Accumulated Value*




So be it the engineering college fees or post-graduate studies you can use the withdrawals as
per your requirements. You can avail of this flexibility any time after 5 years. However, you



                                              65
would be allowed to make only one withdrawal in a year. At the end of the premium paying
term, you can take the remaining value as maturity benefits.

Peace of mind for you this plan gives you the option to choose a protection cover for a sum
assured between 5 to 50 times your annual




contributions. The uniqueness of this plan is that even if anything happens to the parent, the
benefits to the child are not compromised. The benefits under this policy are as follows:

      The Sum Assured is paid immediately. This ensures that your loved ones stay
       financially secure, even in your absence.
      All the future contributions are waived off - Therefore your family is not burdened
       financially and the accumulation of funds for your child's career continues.
      The Policy Benefits continue - This ensures that units can be withdrawn as and when
       required for your child's educational and developmental needs.
      Premium Waiver Rider is available at a nominal extra amount. You can ensure that in
       the unfortunate event of total and permanent disability due to an accident, all the
       premiums that were to be paid by you are waived off and the policy continues to
       secure your child's future.

Annual Allowance With the help of the Income Benefit Rider, this plan guarantees a regular
income to secure your child's educational and developmental needs for his all round
development. The Income Benefit Rider takes care of this through the payment of 10% of the
Sum Assured annually to your child in the unfortunate event of the parent's death.

Premium Holiday If you have been making premium payments for at least 5 years and then
miss out on any of the subsequent premium payments, your policy does not lapse. We will
ensure that your cover keeps on continuing. However, to keep the policy in force, the
mortality charges




                                              66
(which include pay or waiver benefit premium) are deducted from your fund, which will
have an affect on your savings.

POLICY CAN BE APPLICABLE FOR

Parents aged between 20 and 60 years with children in the age group of 0 to 15 years, can
purchase this policy.

Other details of the policy

      Amount and Mode of payment: Rs. 18,000/- per annum, for the annual mode of
       payment. Rs.9,000/- every six months, for the half-yearly mode of payment. Rs.
       1,500/- per month, for the monthly mode of payment.
      Choice of term: Between 10 to 25 years.
      The age of your child at maturity: Between 22 to 25 years.
      Maximum age of parent on maturity: 70 years.
      Minimum Sum Assured: Rs. 1,00,000/-

FUNCTION

You choose a Sum Assured between a specified range of 5-50 times (for ages 41 and above it
is 5 to 25 times) your annual contribution. Part of the premium paid by you is ad the
company Ted towards mortality charges (which include payer waiver benefit premium) and
administrative expenses and the rest is invested as per the investment plan chosen by




you. Entry into the plan will be based on the units allotted to you on the policy issue date, as
per the unit value on that date.

CHARGES OF POLICY


Year                     Premium< s.50000            Premium>= Rs.50000
1st Year                 20%                         18%



                                              67
2nd Year                10%                           8%
3rd year                10%                           8%
4thyear onwards         4%                            4%


      Mortality charges towards the Sum Assured and the payor waiver benefit premium
       are on a one- year renewal term.
      Annual administrative charges of 1.25% per annum of the net assets.
      Annual investment charge of 0.25% per annum of the net assets of         Protector Plan
       and 1% per annum of the net assets for Maximiser and Protector plan and 1% per
       annum of the net assets for Maximiser and Balancer options.
      Initial charge of 1% on the top-ups.
      One free switch every year, after which a switching fee of 1% of the switching
       amount will be levied. If the switch is not utilised for any particular year, then it
       cannot be carried forward to the next year.




Unit-linked    Single    Premium:     Financial      benefits   when    you    require   them
this plan will suit you in case you want to make a one-time lump sum investment for your
child's future. With the ever-increasing cost of education, the financial requirements for your
child's career would change from time to time. This plan provides you with the flexibility of
withdrawals whenever you require them! It allows you a maximum of 5 withdrawals, the
amounts of which are as follows:


Withdrawal           Amount of withdrawal
1stWithdrawal        Up to 20% of the Accumulated Value*
2nd Withdrawal       Up to 25% of the Accumulated Value*
3rd Withdrawal       Up to 30% of the Accumulated Value*
4th Withdrawal       Up to 35% of the Accumulated Value*




                                              68
5th Withdrawal          Up to 40% of the Accumulated Value*




So be it the engineering college fees or post-graduate studies you can use the withdrawals as
per your requirements. You can avail of this flexibility any time after 5 years. However, you
would be allowed to make only one withdrawal in a year. At the end of the premium paying
term, you can take the remaining value as maturity benefits.

Peace of mind for the customer. This plan gives you the option to choose a protection cover
for a Sum Assured of 5 times your premium. The uniqueness of this plan is that even if
anything happens to the parent, the benefits to the child are not compromised. The benefits
under this policy are as follows:

        The Sum Assured is paid immediately - This ensures that your loved ones stay
         financially secure even in your absence.
        The policy benefits continue - This ensures that the units can be withdrawn as and
         when required for your child's educational and developmental needs.

Annual Allowance With the help of the Income Benefit Rider, this plan guarantees a regular
income to secure your child's educational and developmental needs for his all-round
development. The Income Benefit Rider takes care of this through the payment of 10% of the
Sum Assured annually to your child, (in the unfortunate event of death of the parent/s).

PURCHAGE OF THE PLAN

Parents aged between 20 and 50 years with children in the age group of 0 to 15 years, can
purchase         this           policy.              Other         details      of        the          policy
Minimum                   single                       premium:                 Rs.                  50,000/-.
Choice          of             term:             Between             10        to         25            years.
The      age    of      your        child       at     maturity:     Between        22   to     25      years.
Maximum           age          of         the         parent        on       maturity:        60        years.
Minimum Sum Assured: Rs. 2, 50,000/-.



                                                        69
FUNCTION

You choose a premium and 500% of that is given as the Sum Assured. Part of the premium
paid by you is adjusted towards mortality and administrative expenses, and the rest is
invested as per the investment plan chosen by you. Entry into the plan will be based on the
units allotted to you on the policy issue date, as per the unit value on that date.

CHARGES

      For premiums between Rs.50, 000/- and Rs.99, 999/- the charges are 4% of the
       premium. For premiums between Rs.1, 00,000/- and Rs.4, 99,999/- the charges are
       2.25%. For premiums greater than Rs.5, 00,000/- the charges are 1.25%.
      Mortality charges towards the Sum Assured are on a one-year renewal term basis.
      Annual administrative charge of 1.25% per annum of the net assets.
      Annual investment charge of 0.25% per annum of the net assets of Protector plan and
       1% per annum of the net assets for Maximiser and Balancer plans.
      Initial charge of 1% on the top-ups.
      One free switch every year, after which a switching fee of 1% of the switching
       amount will be levied. Any unutilised free switch cannot be carried forward.




Additional benefits available with Smart Kid Unit-linked Child Plans

      Income Benefit Rider
      Accident and Disability Benefit Rider
      Waiver of Premium Rider**

Flexible      options        with       Unit-linked       Smart        Kid       Child   Plans
After deducting the initial administrative and mortality charges from your




                                                70
contribution, the amount is invested. Depending upon your investment priorities, you can
choose your investment portfolio.

Choice of Investment Plan: You have the option to choose how you want your investment to
grow as per your investment horizon and priorities. You can choose any of the following
options or a combination of these options in any proportion.

Maximiser (Growth): If high growth is your priority, this is the plan for you. You can enjoy
long-term capital appreciation from a portfolio that is invested primarily in equities and
equity-related securities. In line with the objective, the asset allocation in this fund is: Equity
and related security (maximum 100%) and Debt, Money Market and Cash (maximum 25%).

Protector (Income): If your priority is steady returns with moderate risk, you can opt for this
plan. In line with the objective, the asset allocation of the fund is: Debt instruments
(maximum 100%) and Money Market and Cash (maximum 25%).




Balancer (Balanced): If you prefer a balance of growth and steady returns, choose our
Balancer plan. This fund invests in equity and equity linked securities, as well as in fixed
income securities. In line with the objective, the asset allocation in this fund is: Equity and
related security (maximum 40%) and Debt, Money Market and Cash (minimum 60%)
For all calculation purposes, the existing NAV of the funds as of that day would be
considered.

Change in Investment Plan: If at a later stage your financial priorities change, you can switch
between the various investment plan options as above at any time. You can do this absolutely
free once every year. Each switch should be a Top-up: If, besides the single premium that
you pay, at any given point of time you want to park in some surplus amount for your child,
you can do that in the form of a top-up. The top-up has to be for a minimum of Rs. 5,000/-.
This can take care of increasing expenses later in the child's educational career. The top-up
amount, after the deduction of the top-up charge, is allotted as units, at the unit price




                                                71
prevailing on the date of the top-up. There is no additional death benefit associated with top-
ups.

Tax           Benefits           with           Smart             Kid      Child         Plans
Tax benefits under Section 88 and Section 10 (10D) are applicable as per prevailing Income
Tax laws.




SMART KID

As parents, Customer biggest concern is that of securing the future of his child. In today's
world, with ever increasing competition, escalating cost of education and uncertain financial
markets, it is very important to plan for their child's future.

PRESENTING SMARTKID

A plan which gives Customer’s child the freedom to pursue their dreams, the strength to face
challenges, the guarantee to live life to its fullest…whatever be the uncertainty.

SMARTKID

It is a plan that provides guaranteed benefits to customer’s along with life insurance
cover. SmartKid is so designed that it provides money at all the critical milestones in his/her
life, whatever be the uncertainties.

POLICY APPLICABLE FOR




                                                72
Parents (between 20-60 years) with children in the age group of 0-12 years can purchase this
policy. You have the flexibility to choose the exact age of the child (between 22 to 25 years),
at which the policy is to mature.


Imagine that the customer is 32 years old and his child is 5 years old and he wants the
product to mature when he/she is 22 years old. The customer also has the option to choose
between two structures of payout of benefits.




STRUCTURE 1

At the end of         Child's Age      % of Sum Assured          Needs met



10th     year    of                                              Extra tuition, preparation
policy                15 years         20% of SA*                for    professional     courses,
(Term-7)                                                         change of school or college.




12th     year    of                                              Join a professional college or
                      17 years         25% of SA*
policy                                                           graduation college.
(Term-5)


15th     year    of                                              Higher     studies    or    post
                      20 years         25% of SA*
policy                                                           graduation
(Term-2)




                                                73
                                                            Further education in India
                                     30%          of SA*+
17th    year    of                                          and abroad. Alternatively,
                      22 years       Guaranteed Additions
policy (Term)                                               thus for marriage or career
                                     + Vested Bonus
                                                            establishment.




STUCTURE 2

At the end of          Child's Age      % of Sum Assured         Needs met
                                                                 Extra         tuition,
                                                                 preparation       for
13th year of policy
                       18 years         25% of SA*               professional courses,
(Term-4)
                                                                 Change of school or
                                                                 college.


                                                                 Join a professional
14th year of policy
                       19 years         20% of SA*               college or graduation
(Term-3)
                                                                 college.



15th year of policy
                       20 years         20% of SA*               Graduation
(Term-2)




                                           74
16th year of policy
                        21 years           20% of SA*                     Graduation
(Term-1)

                                                                          Further education in
                                           20%                   of SA* India And abroad.
17th year of policy
                        22 years           + Guaranteed Additions Alternatively,           thus
(Term)
                                           + Vested Bonus                 for   Marriage     or
                                                                          career establishment.

(Sum Assured)




The plan provides with a guaranteed addition (GA) of 3.5% compounded

Annually for the first 4 years of the plan and bonus thereafter (Vested

Bonus) applicable as per the performance of the company.

REASON FOR BUYING SMARTKID

Because company SmartKid ensures that you have total peace of mind as far as your child's
future is concerned.In the event of death of the Life Assured:

Sum Assured of the plan is paid immediately - assists the family in meeting the unforeseen
expenses incurred because of the unfortunate loss.

Waiver of Premium - no future premium are payable, thereby ensuring that your family is
not burdened financially.

Educational benefits, guaranteed - which means that the future of the child remains secure.

Thus, there will be no financial obstacle in realizing the dream which the parent or child had.



                                              75
ADD-ON OPTION

With SmartKid you have the option of taking two add-ons -

      Income Benefit Rider
      Accident and Disability Benefit Rider




      Accident Benefit Rider

PAYMENT OF PREMIUMS

Mode of payment: Monthly, half-yearly and yearly.

SPECIFICATION OF SMARTKID

      Minimum premium: Rs. 8,400/- per year
      Sum Assured: From Rs.100,000/- to Rs.3,000,000/-
      Maximum limit under Income Benefit Rider: Rs.1,000,000/-
      Maximum       limit    under    Accident     and     Disability   Benefit   Rider:
       Rs.1,000,000/-

PAYMENT OF PREMIUMS

You can opt for the yearly, half - yearly & monthly mode of premium payment. The monthly
mode is only available through ECS (Electronic Clearing Service)

TAX BENEFITS

Tax benefits are available under Sec 88 and Section 10 (10D), as per the prevailing Income
Tax laws.




                                            76
RETIREMENT PLANS

Most of Customer pictures him selves enjoying the fruits of labor after retirement, going on
his dream vacation, or helping their children's career take wing. But do they realise that
financing all this will most likely depend partly on their personal savings? Because personal
savings and investments represent a significant source of retirement income for many people,
they can never save too much.

Currently, they are at a stage where they are juggling many roles, as nurturing parents, dutiful
caregivers to elders, supportive life partners, while trying to maintain a career. It is too easy
to get carried away handling and solving the day-to-day problems to not look into their
retirement needs. It may also seem too far away to be of concern. But a look at the issues
below will make the need for some strategic planning at this stage amply clear.

Today, thanks to a healthier lifestyle and advances in medicine, the average Indian lives
longer. This makes the challenge of accumulating enough money for retirement even more
difficult, since it may have to last longer. Also, with the falling interest rate scenario and the
rising costs of medical expenses retirement mean monetary uncertainty for most of the
company. More so, because there is also the ever-persistent evil of inflation, which erodes
your purchasing power. The graph below illustrates how much will Rupees 10,000/- amount
to after some years

Therefore, the message is simple - no matter whether you are 30 or 50, you should start
planning early to have a healthy retirement kitty. (See graph below for an illustration)




                                               77
See this illustration




According to my illustration here the cost of delaying is high. Situation A is when the
customer is saving Rs 10000 annually from the age of 25 to 34 years and Situation B is when



                                            78
the customer saves the same annual amount from the age of 35 to 59 years. As can be seen in
the example, even after investing customer’s money for a 2.5 times longer duration, the
maturity value in the second case is much lesser (the figures are based on a hypothetical
interest rate of 10%). The longer his money is allowed to grow at a compounded rate, the
more dramatic will the difference be eventually.

Therefore, the message is simple - Put Time on customer Side and Start Early.

The ICICI Prudential Life Insurance believes in the philosophy of providing meaningful and
comprehensive insurance solutions to plan customer’s retirement. ICICI PRUDENTIAL
LIFE INSURANCE CO.LTD. Insurance solutions are the most optimal tools to plan
customer retirement because they give to him Safety, Liquidity, Tax benefits, Health cover
and Life protection and thus ensure that the customers are comprehensively covered.

ICICI Prudential presents Retirement Solutions that combine the best of investment and
insurance. These solutions are developed to ensure customers’ peace of mind for the years to
come. Solutions that give him the power to maintain their lifestyle needs for as long as they
live.




LIFETIME PENSION

A regular premium linked deferred pension plan that gives customer freedom to choose the
amount of premium, and invest in market-linked funds, to generate potentially higher returns.

SECURE PLUS PENSION

A regular premium deferred pension plan that gives customer flexibility to choose between 3
levels of sum assured for the same level of total annual contribution.



                                              79
LIFELINK PENSION

A single premium linked deferred pension plan that gives customer the freedom to choose the
amount of premium, and invest in market-linked funds, to generate potentially higher returns.

FORE EVER LIFE

A regular premium deferred pension plan that helps customer saves for their retirement
while providing him with life insurance protection.

Depending on customers specific needs ICICI PRUDENTIAL Retirement Solutions give him
the:

          Power to choose the retirement date
          Power to increase your investments*
          Power to choose the protection level
          Power to invest in a plan based on your priorities**




          Power to receive your pension in 5 different ways
          Power to choose your annuity provider
          Power to add-on flexible riders at a nominal extra premium#

*Not available with Forever Life

**Available only with Lifetime Pension and LifeLink Pension.

# Not available with LifeLink Pension

LIFETIME PENSION

Life expectancy has been rising rapidly and today, the customer can now expect to live much
longer than their earlier generations. For him, this increase will mean a longer retirement life,
stretching into a couple of decades. So, it is more critical than ever to plan adequately and


                                               80
wisely for those incremental retirement years, keeping in mind that customer expenses will
spiral upward, their cost of living will increase and inflation will be ever present. Therefore,
they need a plan that ensures safety, risk cover, income security and regular returns for their
post- retirement years.

ICICI PRUDENTIAL can help the customer to just that. ICICI Prudential Life Insurance
presents LifeTime Pension - a regular premium linked deferred pension plan.




BENEFIT OF DEFERRED PENSION PLAN

A Linked Deferred Plan gives freedom to customer to choose the amount of premium, and
invest in market-linked funds, to generate potentially higher returns. A part of the premium
paid is used to pay for the death benefit (if any) opted for by him and the rest would be
invested in the plan of their choice. On the retirement date, the accumulated value of the units
will be used to purchase an annuity - to provide him with regular income for life.

LIFE COVER BENEFIT

In the unfortunate event of customers’ death before retirement, their Spouse has the option of
receiving either the death benefit or the value of units as a lump sum (whichever is higher),
or get an annuity that would provide regular income for life.

Power to choose the retirement date customer can choose a vesting date once the customer is
50 years of age. However, customer has the option of postponing this vesting date till the age
of 70 years. With this, they can take advantage of market movements.

Power to increase your investments Use your surplus funds to top-up their investment
(minimum Rs 10,000) during the deferment period.




                                              81
Power to choose the protection level that customer choose the amount of life cover their
require. They can also opt for a Zero Death Benefit. The amount, which they pay for the
Death Benefit, depends on their chosen protection level.




Power              to            increase/decrease      the       protection          level
In case they opt for a Death Benefit, they have the option of increasing or decreasing the
cover during the deferment period.

Power         to        invest     in      a     plan   based   on      their     priorities
they can choose between the Maximizer (Growth), Protector (Income) or Balancer
(Balanced) plans. They also have the power to switch between the plans, to suit their
investment priorities. They are entitled to one free switch every year during the deferment
period.




CONDITION

         Customer should be between 18 and 60 years of age.



                                                 82
      The minimum annual premium is Rs.10, 000; half-yearly premium is Rs. 5,000
       and monthly premium is Rs.834.
      Minimum term is 10 years.




EXIT OPTION

This plan acquires a surrender value after full premiums for 3 policy years are paid. In case
of complete withdrawal, a surrender value equivalent to the value of the units is paid.

CHARGES ON POLICY

The initial administrative charges in the 1st year would be 20% of the premium, for premium
amounts less than Rs.50, 000. For premiums equal to or greater than Rs.50, 000, the charges
would be 18% of the premium. In case the Zero Death Benefit has been opted for, the
charges would be 18% and 15% for the same premium bands. However, in all cases, charges
would be 7.5% in the 2nd year and 4% from 3rd year onwards.

OTHER CHARGES

Other charges would include annual administrative charges of 1.25% per annum of net assets
for Protector (Income) and 1.25% per annum for Maximizer (Growth) and Balancer
(Balanced) options. An annual investment charge of 0.25% per annum of net assets for
Protector and 1% for Maximizer (Growth) and Balancer (Balanced) would also be charged.




ANNUITY OPTIONS

FUNCTION OF ANNUITY




                                              83
      Customer accumulated value would start paying their regular income in the form of
       an annuity, at a frequency chosen by the customer. This income can be received
       monthly, quarterly, half-yearly or annually.
      Customers have the option of selecting a guaranteed annuity rate period of either 5 or
       7 years.
      The amount of annuity is fixed for a guaranteed annuity rate period and will be
       recalculated at intervals of every guaranteed period, based on the then prevailing
       annuity rates.
      On commencement, and at the end of every guaranteed period, the amount of annuity
       payable for the next guaranteed number of years and the Residual Purchase Price
       (which will be available for calculation of the annuity rate at the end of the
       guaranteed annuity period), on survival, will be guaranteed.
      Once the policy holder is 75 years of age, the annuity will be fixed for life and not
       reviewed thereafter.
      At the time of reset of the annuity, you have an Open Market Option, which would
       enable you to get your annuity from any other annuity provider, should our rates not
       be as competitive. However, there will be a charge of 1% of the residual purchase
       price, should you choose this option (Please do refer to the 'Power to choose your
       annuity provider' section).




Power to receive customer pension in FIVE different ways

On vesting, customer has the flexibility to choose from five different annuity options:

          Life Annuity: Annuity for life.
          Life Annuity with Return of Purchase Price: Life Annuity for the annuitant
           with the return of the purchase price to the beneficiary.




                                              84
          Life Annuity Guaranteed for 5, 10, and 15 years: Guaranteed Annuity is paid
           for the chosen term (5/10/15 years) and after that, the annuity continues as long as
           the annuitant is alive.

Joint Life, Last Survivor with Return of Purchase Price: In this case, the annuity is first
paid to the annuitant. After the death of the annuitant, the Spouse starts getting a pension,
which is an amount that is equal to the annuity paid to the annuitant.

Power to choose customer annuity provider. This option offers them the flexibility to buy a
pension from any other insurer of their choice, at the time of vesting. So, they have the
freedom to take the best offer available in the market.




TAX BENEFIT IN LIFETIME PENSION

Tax benefit u/s 80CCC (1): Up to Rs10, 000 deducted from your taxable income.

ADDITIONAL FEATURE IN THIS PLAN

For protection to the customer’s family against any unfortunate health hazards or eventuality
ICICI PRUDENTIAL offer them the following add-on benefits/riders with this plan

          Critical Illness Rider
          Major Surgical Assistance Rider
          Accident and Disability Benefit Rider

In case of a market linked policy, your units will be repurchased by the company at the unit
value determined on the Valuation Date following the date of cancellation after deducting the
charges mentioned above.



                                              85
SECURE PLUS

Life expectancy has been rising rapidly and today, customer can now expect to live much
longer than they earlier generations. For him, this increase will mean a longer retirement life,
stretching into a couple of decades. So, it is more critical than ever to plan adequately and
wisely for those incremental retirement years, keeping in mind that their expenses will spiral
upward, cost of living will increase and inflation will be ever present. Therefore, they need a
plan that ensures safety, risk cover, income security and regular returns for their post-
retirement years.




ICICI Prudential Life Insurance presents Secure plus Pension - a flexible regular premium
deferred pension plan.

Power to choose their protection levels Secure plus Pension provides them with three levels
of sum assured, for the same amount of total annual contribution. Customers have the option
of choosing between Basic, Standard and Enhanced levels of cover.

How to calculate your cover as per the term you have chosen
(Term - 5) x Premium                             = Basic cover
(Term) x Premium                                 = Standard cover
(Term + 5) x Premium                             = Enhanced cover

The Zero Death Benefit option scurePlus Pension gives him the opportunity to shift from one
level of cover to another as per their changing requirement. Once the customer has decided to
avail of the Zero Death Benefit option, they do not get the option to alter their cover again. In
the unfortunate event of death, their Spouse is protected by a lump sum amount, which is the
sum assured plus the value accumulated in their policy. Additionally, their Spouse can
exercise the option to draw a pension from this amount.

END OF PREMIUM PAYMENT TERM




                                               86
The total accumulated value of the policy, including the declared bonuses, would be used as
a purchase price to give them a pension of their choice. They have the option of taking up to
33.33% of the accumulated value as a lump sum and begin a pension from the rest of the
amount.




SECUREPLUS PENSION ACCUMULATE FUNDS

The invested premium and the declared bonus interest would be payable on death (along with
the Sum Assured) or would be used as a purchase price at the time of vesting. However, at
the time of payment due to death or at the time of vesting, if the value of the individual's
investment account is more than the invested premium (along with the declared bonus
interests) then the additional amount would also be payable on death or would be used as a
purchase price at the time of vesting. The differential between declared bonus interest and
earned rate would not be greater than 1%.

Power to choose the retirement datecustomer can choose a vesting age between 50 and 75
years. You have the flexibility to postpone the vesting date from the originally chosen
vesting date up to a maximum of 75 years of age. This option can be exercised only once, 6
months prior to vesting.

CONDITIONS FOR ENTRY

      With Life Cover: Any person between 18 and 60 years of age can apply.
      Without Life Cover (Zero Death Benefit): Any person between 18 and65 years of
       age can apply.
      Minimum term is 10 years.
      Minimum annual premium is Rs.10, 000; half-yearly premium is Rs.5,000; and
       monthly premium is Rs.834.




                                             87
EXIT OPTION

SecurePlus Pension acquires a surrender value after premiums for three policy years are fully
paid. The surrender value is the accumulated value of your policy, or its market value at the
time of death or maturity, whichever is higher. Surrender value can be classified under two
categories:

a) Guaranteed

b) Non-guaranteed.

      Guaranteed surrender value will be 35% of all premiums paid - excluding the first
       year premium and all extra premiums and premiums for rider benefits.
      On request, the company may provide non-guaranteed surrender values as specified
       from time-to-time.
      The insurance protection ceases on surrender of the policy.

ANNUITY OPTION

FUNCTION OF ANNUITY

      Your accumulated value would start paying you regular income in the form of an
       annuity, at a frequency chosen by you. This income can be received monthly,
       quarterly, half-yearly or annually.
   




      You have the option of selecting a guaranteed annuity rate period of either 5 or 7
       years.
      The amount of annuity is fixed for a guaranteed annuity rate period and will be
       recalculated at intervals of every guaranteed period, the then prevailing annuity rates.



                                              88
        On commencement, and at the end of every guaranteed period, the amount of annuity
         payable for the next guaranteed number of years and the Residual Purchase Price
         (which will be available for calculation of the annuity rate at the end of the
         guaranteed annuity period), on survival, will be guaranteed.
        Once the policy holder is 75 years of age, the annuity will be fixed for life and not
         reviewed thereafter.
        At the time of reset of the annuity, you have an Open Market Option, which would
         enable you to get your annuity from any other annuity provider, should our rates not
         be as competitive. However, there will be a charge of 1% of the residual purchase
         price, should you choose this option (Please do refer to the 'Power to choose your
         annuity provider' section).

Power to receive your pension in FIVE different ways

On vesting, you have the flexibility to choose from five different annuity options:

Life Annuity: Annuity for life.

Life Annuity with Return of Purchase Price: Life Annuity for the annuitant with the return
of the purchase price to the beneficiary




Life Annuity Guaranteed for 5, 10, and 15 years: Guaranteed Annuity is paid for the
chosen term (5/10/15 years) and after that, the annuity continues as long as the annuitant is
alive.

Joint Life, Last Survivor with Return of Purchase Price: In this case, the annuity is first
paid to the annuitant. After the death of the annuitant, the Spouse starts getting a pension,
which is an amount that is equal to the annuity paid to the annuitant.

Power to choose customer annuity provider. This option offers them to the flexibility to buy a
pension from any other insurer of their choice, at the time of vesting. So, they have the
freedom to take the best offer available in the market.


                                               89
TAX BENEFIT

Tax benefits available with SecurePlus Pension
Tax benefit u/s 80CCC (1): Up to Rs10, 000 deducted from your taxable income.

Power to add-on flexible riders at a nominal extra premium

      Critical Illness Rider (Accelerated)
      Major Surgical Assistance Rider
      Accident and Disability Benefit Rider
      Accident Benefit Rider
      Waiver of Premium Rider




LIFELINK PENSION

Life expectancy has been rising rapidly and today, you can now expect to live much longer
than your earlier generations. For you, this increase will mean a longer retirement life,
stretching into a couple of decades. So, it is more critical than ever to plan adequately and
wisely for those incremental retirement years, keeping in mind that your expenses will spiral
upward, your cost of living will increase and inflation will be ever present. Therefore, they
need a plan that ensures safety, risk cover, income security and regular returns for your post-
retirement years.

ICICI PRUDENTIAL can help customer to do just that. ICICI Prudential Life Insurance
presents LifeLink Pension - a single premium linked deferred pension plan.

BENEFITS OF LINKED DEFERRED PENSION PLAN

A Linked Deferred Plan gives you the freedom to choose the amount of premium, and invest
in market-linked funds, to generate potentially higher returns. A part of the premium paid is
used to pay for the death benefit (if any) opted for by you and the rest would be invested in




                                              90
the plan of your choice. On the retirement date, the accumulated value of the units will be
used to purchase an annuity - to provide them with regular income for life.

Life cover benefit .In the unfortunate event of your death before retirement, your Spouse has
the option of receiving either the death benefit or the value of units as a lump sum
(whichever is higher), or get an annuity that would provide regular income for life.

Power to choose the retirement date. Customer can choose a vesting date once you are 50
years of age. However, you have the option of postponing this vesting date till the age of 75
years. With this, they can take advantage of market movements.

Power to increase their investments. Use your surplus funds to top-up their investment during
the deferment period. The minimum top-up amount is Rs. 5,000.

Power to choose the protection level .They choose the amount of life cover you require. In
this plan, the Death Benefit is 1.05 times the premium paid. They can also opt for a Zero
Death Benefit. The amount, which they pay for the Death Benefit, depends on their chosen
protection level.

Power       to      invest     in      a     plan      based       on         their    priorities
they can choose between the Maximizer (Growth), Protector (Income) or Balancer
(Balanced) plans. You also have the power to switch between the plans, to suit your
investment priorities. They are entitled to one free switch every year during the deferment
period.




                                              91
ENTRY CONDITION

     You should be between 18 and 60 years of age. For Zero Death Benefit, any
      person between 18 and 65 can apply. The cover ceasing age is 60 years.
     Minimum premium in this plan is Rs. 50,000.
     Minimum term of the product is 3 years.




                                         92
EXIT OPTION

This plan acquires surrender value after 1 year from the start of the plan. In case of complete
withdrawals, a surrender value equivalent to the value of the units is paid.

CHARGES ON POLICY

For premiums between Rs.50, 000 and Rs.99, 999, the initial charges would be 4% of the
premium. For premiums between Rs.1, 00,000 and Rs.4, 99,999, charges would be 2.25%
and for an amount of Rs.5, 00,000 or more, the charges would be 1.25% of the premium.

OTHER CHARGES

Other charges would include annual administrative charges of 1.25% per annum of net assets
for Protector (Income) and 1.25% per annum for Maximizer (Growth) and Balancer
(Balanced) options. An annual investment charge of 0.25% per annum of net assets for
Protector and 1% for Maximizer (Growth) and Balancer (Balanced) would also be charged.

ANNUITY OPTION

ANNUITY WORK

      Customer accumulated value would start paying you regular income in the form of an
       annuity, at a frequency chosen by them. This income can be received monthly,
       quarterly, half-yearly or annually.




      Customers have the option of selecting a guaranteed annuity rate period of either 5 or
       7 years.
      The amount of annuity is fixed for a guaranteed annuity rate period and will be
       recalculated at intervals of every guaranteed period, based on the then prevailing
       annuity rates.




                                               93
      On commencement, and at the end of every guaranteed period, the amount of annuity
       payable for the next guaranteed number of years and the Residual Purchase Price
       (which will be available for calculation of the survival, will be guaranteed.
      Once the policy holder is 75 years of age, the annuity will be fixed for life and not
       reviewed thereafter.
      At the time of reset of the annuity, you have an Open Market Option, which would
       enable you to get your annuity from any other annuity provider, should our rates not
       be as competitive. However, there will be a charge of 1% of the residual purchase
       price, should you choose this option (Please do refer to the 'Power to choose your
       annuity provider' section).




Power to receive your pension in FIVE different ways

On vesting, customers have the flexibility to choose from five different annuity options:

   1. Life Annuity: Annuity for life.
   2. Life Annuity with Return of Purchase Price: Life Annuity for the annuitant with the
       return of the purchase price to the beneficiary
   3. Life Annuity Guaranteed for 5, 10, and 15 years: Guaranteed Annuity is paid for the
       chosen term (5/10/15 years) and after that, the annuity continues as long as the
       annuitant is alive.
   4. Joint Life, Last Survivor with Return of Purchase Price: In this case, the annuity is
       first paid to the annuitant. After the death of the annuitant, the Spouse starts getting a
       pension, which is an amount that is equal to the annuity paid to the annuitant. After
       the death of the last survivor, the purchase price is returned to the beneficiary.
   5. Joint Life, Last Survivor without Return of Purchase Price: In this case, the annuity is
       first paid to the annuitant. After the death of the annuitant, the Spouse starts getting a
       pension, which is an amount that annuity rate at the end of the guaranteed annuity
       period), on is equal to the annuity paid to the annuitant.




                                               94
Power to choose their annuity provider. This option offers you the flexibility to buy a pension
from any other insurer of your choice, at the




time of vesting. So, you have the freedom to take the best offer available in the market.

TAX BENEFIT WITH LIFELINK PENSION

Tax benefit u/s 80CCC (1): Up to Rs10, 000 deducted from your taxable income.

In case of a market linked policy, their units will be repurchased by the company at the unit
value determined on the Valuation Date following the date of cancellation after deducting the
charges mentioned above.

FOREEVER LIFE (Deferred Pension)

Life expectancy has been rising rapidly and today, they can now expect to live much longer
than your earlier generations. For him, this increase will mean a longer retirement life,
stretching into a couple of decades. So, it is more critical than ever to plan adequately and
wisely for those incremental retirement years, keeping in mind that their expenses will spiral
upward, their cost of living will increase and inflation will be ever present. Therefore, they
need a plan that ensures safety, risk cover, income security and regular returns for your post-
retirement years.

ICICI Prudential Life Insurance presents

FOREEVER LIFE

A comprehensive retirement solution that is developed keeping in mind your various
capabilities and needs, with respect to their retirement planning. ICICI PRUDENTIAL make
sure that they can plan well when




                                                95
they can and maintain your lifestyle for a lifetime. So, whether they are 30 or 60 we have just
the right retirement plan them.

Life cover benefits.ForeverLife Pension Plan provides life cover during the deferment phase.
In the unfortunate event of your death, their Spouse has the option to receive the sum assured
with guaranteed additions and vested bonuses (if any) as a lump sum or get an annuity that
would provide a regular income for life.

Power to choose the retirement date they can choose the vesting age between 50 to 70 years.
They have the flexibility to postpone the vesting from the originally chosen vesting date up
to a maximum of 70 years of age. This option can be exercised once at the time of vesting.
During the postponed period, their accumulated amount will earn interest as determined by
the company from time to time. There will be no life cover or premiums paid during this
period.

ENTRY CONDITION

         Customer should be between 20 and 60 years of age.
         Minimum sum assured is Rs. 50,000.
         Minimum term is 5 years and the maximum is 30 years.
         Minimum premium is Rs.6, 000.




EXIT OPTION

ForeverLife Pension Plan acquires a surrender value after premiums for 3 policy years are
fully paid. A surrender value is payable if you wish to withdraw after 3 years.

ANNUITY OPTION



                                              96
WORKING OF ANNUITY

      Customer can accumulated value would start paying you regular income in the form
       of an annuity, at a frequency chosen by them. This income can be received monthly,
       quarterly, half-yearly or annually.
      They have the option of selecting a guaranteed annuity rate period of either 5 or 7
       years.
      The amount of annuity is fixed for a guaranteed annuity rate period and will be
       recalculated at intervals of every guaranteed period, based on the then prevailing
       annuity rates.
      On commencement, and at the end of every guaranteed period, the amount of annuity
       payable for the next guaranteed number of years and the Residual Purchase Price
       (which will be available for calculation of the annuity rate at the end of the
       guaranteed annuity period), on survival, will be guaranteed.




      Once the policy holder is 75 years of age, the annuity will be fixed for life and not
       reviewed thereafter.
      At the time of reset of the annuity, you have an Open Market Option, which would
       enable you to get your annuity from any other annuity provider, should our rates not
       be as competitive. However, there will be a charge of 1% of the residual purchase
       price, should you choose this option (Please do refer to the 'Power to choose your
       annuity provider' section).

Power to receive your pension in FIVE different ways

On vesting, they have the flexibility to choose from five different annuity options:

   1. Life Annuity: Annuity for life.
   2. Life Annuity with Return of Purchase Price: Life Annuity for the annuitant with
       the return of the purchase price to the beneficiary




                                              97
   3. Life Annuity Guaranteed for 5, 10, and 15 years: Guaranteed Annuity is paid for
        the chosen term (5/10/15 years) and after that, the annuity continues as long as the
        annuitant is alive.
   4. Joint Life, Last Survivor with Return of Purchase Price: In this case, the annuity
        is first paid to the annuitant. After the death of the annuitant, the Spouse starts getting
        a pension, which is an




   5. amount that is equal to the annuity paid to the annuitant. After the death of the last
        survivor, the purchase price is returned to the beneficiary.
   6. Joint Life, Last Survivor without Return of Purchase Price: In this case, the
        annuity is first paid to the annuitant. After the death of the annuitant, the Spouse starts
        getting a pension, which is an amount that is equal to the annuity paid to the
        annuitant.

Power to choose their annuity provider. This option offers that they are the flexibility to buy
a pension from any other insurer of their choice, at the time of vesting. So, they have the
freedom to take the best offer available in the market.

Tax benefits available with ForeverLife Tax benefit u/s 80CCC (1): Up to Rs10, 000
deducted from your taxable income.

Power      to     add-on      flexible     riders    at     a     nominal      extra     premium
for protection to your family against any unfortunate health hazards or eventuality we offer
you the following add-on benefits/riders with this plan.

       Critical Illness Rider
       Major Surgical Assistance Rider
       Accident and Disability Benefit Rider
       Accident Benefit Rider




                                                98
INVESTMENT PLAN

Often they may have some investible funds lying idle - a bonus or maybe a windfall. You can
either secure your family through insurance or invest it for growth. The need for insurance is
crucial but they also want to see their money grow through market investments.

VOLATILE MARKET CONDITION

BOTH SECURE

Relax, because now customer can hedge their investments with safer investment vehicles that
provide them with a diversified portfolio.

ICICI Prudential Life Insurance presents Investment Solutions, which provide you high
returns, while guaranteeing complete peace of mind.

This follows from ICICI PRUDENTIAL understanding that life has many facets and they are
manifested through its various needs. Therefore our philosophy is to provide them with
comprehensive insurance solutions that cater to their dual needs of earning potentially high
returns   as   well   as   stay insured      for    life.   Thus   ICICI PRUDENTIAL offers
customer Investment Solutions that combine the best of insurance and investment.




LIFE LINK




                                                   99
An investment plan that gives them the flexibility of choosing their investment options while
keeping them insured for life.

LIFE LINK (SP)

Often they might have some investible funds lying idle - a bonus or maybe a windfall.
Customer can either secure their family through insurance or invest it for growth. The need
for insurance is crucial but they also want to see their money grow through market
investments. But, in volatile market conditions.

SECURE BOTH

LifeLink allows customer to enjoy both the benefits! A unique plan that combines the
security of a life insurance policy with the opportunity of enjoying high returns on their
investments. Without the market risks compromising the protection of their family!




LIFELINK

      Provides death benefit security to customers’ family.
      Brings you additional income on funds that might have languished in their savings
       account.
      Enables them to enjoy the upside of market returns, while protecting their family
       from the downsides.




All this without having to pay year after year! Customer can make a single premium
investment that can be as low as Rs.50, 000. This is as good as it gets!

FUNCTION OF THE PLAN

Customer can choose the amount according to their want to invest. They can also choose the
death benefit between two options,


                                              100
Option 1: 500% of the premiums paid

Option 2: 105% of the premiums paid

After deducting initial expenses the balance amount is invested in units of the fund you
choose.

BENEFITS

DEATH BENEFIT

Life is full of uncertainties. In case of the unfortunate event of their demise, their near and
dear ones are spared an uncertain future. They will be taken care of through ICICI
PRUDENTIAL guaranteed death benefit. In the event of death the nominee/s will receive
higher of the value of units or the initial death benefit (500% or 105% of the initial premium
as chosen) less any withdrawal.




WITHDRWAL BENEFIT

There is no specific maturity date. Anytime after 1 year they can choose to withdraw their
money through partial or complete surrender of units. The death benefit would be reduced by
the amount withdrawn.

CALCULATION OF UNIT VALUE

Unit Value is calculated daily on a forward pricing basis

Unit Value


                                             101
Market / Fair Value of the relevant Plan's Investments plus Current Assets                   less
Current                      Liabilities                     and                      Provisions
=________________________________________________________

            Number of Units outstanding under the relevant Plan

FLEXIBILITY OPTION

CUSTOMER CAN CHOOSE HIS KIND OF RETURN

MAXIMISER (Growth)

If high growth is Customer priority this is the plan for him. they can enjoy long-term capital
appreciation from a portfolio that is invested primarily in equity and equity-related securities.




PROTECTOR (Income)

If customer priority is steady accumulation of returns, they can opt for the Income Plan.
Here he can accumulate a steady return at moderate risk across a medium to long-term
period.

BALANCER (Balanced)

If CUSTOMER prefers a balance of growth and steady returns, choose ICICI PRUDENTIAL
Balancer Plan. This would ensure that there portfolio is invested in equity and equity-linked
securities as well as in fixed income securities.


                                               102
CUSTOMER CAN CHANGE HIS PLAN LATER

If at a later stage customer financial priorities change, he can switch between the various plan
options, and he can do this absolutely free once a year.




IF CUSTOMER HAVE MORE INVESTIBLE FUNDS AT THE END OF THE YEAR

He can top-up his investment at any time when he has surplus funds. There is no death
benefit associated with the top-ups. The minimum top-up has to be Rs.5, 000.

TAX BENEFIT

The premium will quality for tax benefits under Section 88 up to 20% of the actual capital
sum assured. The tax benefits under Section 10(10D) will be available only on the death
benefit. He is advised to satisfy himself about the taxation aspects as per prevailing laws.

THE LIMITS OR CONSITIONS

Minimum Premium: Rs.50, 000



                                              103
Minimum Top-up Single Premium: Rs.5, 000

AGE OF ENTRY

Minimum age: 0 yrs (risk commencing from 7 yrs);

Maximum age: 60 years

Maximum cover ceasing age: 60 years (completed years)




ALLOCATION STRUCTURE

      Initial allocation of 96% for premium between Rs.50,000 - Rs.99,999, 97.75% for
       premium between Rs.1,00,000 - Rs.4,99,999 and 98.75% for all premium equal to or
       above Rs.5,00,000.

OTHER CHARGES

      Annual administrative charges of 1.25% p.a. of net assets.
      Annual investment charge of 0.25% per annum of net assets for protector funds and
       1% per annum of net assets for maximiser and balancer options.
      Initial charges of 1% on Top-ups
      One free switch every year after which a switching fee of 1% of the switching amount
       will be levied. Any unutilised free switch cannot be carried forward.
      Minimum switch amount Rs.2, 000.
      The mortality charges will be deducted by cancellation of units. Following is a table
       of mortality rates at certain ages.




                                             104
Age                     30                         40                     50
Mort. Charge / 000
                        1.48                       2.54                   6.05
of SA




In case of a market linked policy, your units will be repurchased by the company at the unit
value determined on the Valuation Date following the date of cancellation after deducting the
charges mentioned above

GROUP INSURANCE SOLUTION

Employee care - the defining edge. In this new age of rapid developments and just-in-time
methodologies, one big challenge that organisations face is to establish and maintain a
competitive edge over others. Today's cutting-edge product or service becomes tomorrow's
undifferentiated commodity. In an era of competitive parity, the only asset that makes a
decisive difference between corporate success and failure is the quality of human capital.

Investment     in    one’s     employees      is        an   investment    in    the    future
Employees are a company’s human capital. Not only do companies care for them, but also
provide an environment that fosters a deep and lasting sense of belonging. Employees
determine the present and decide the future of a company.

Employee benefits have proven to be an excellent tool to optimize the retention of talent and
improve an organization’s bottom line. The quality of an organisation’s employee benefits
establishes and maintains a company's image as a caring employer. Optimum care of
employees is a long-term investment that results in a sustained competitive advantage for an
organisation in the times to come.




                                             105
ICICI PRUDENTIAL SOLUTIONS ADVANTAGES

      An integrated basket of flexible group insurance solutions that offer incomparable
       flexible benefits.
      Sound investment management that focus on safety, stability and profitability of the
       portfolio.
      Personalised financial planning for your employee that takes care of his/her changing
       financial needs at every stage of life.
      Quality service initiatives and transparency across all operations, promising
       superlative operational efficiency.

GROUP GRATUITY PLAN

A plan that helps employers funds their statutory gratuity obligation in a scientific manner.

GROUP TERM ASSURANCE

A plan that helps provides affordable cover to members of a group.

GROUP SUPERANNUATION PLAN

Flexible Defined Contribution Superannuation scheme that provides for a retirement kitty for
each member of the group.

GROUP GRATUITY PLAN

ICICI Pru's group gratuity plan helps employers fund their statutory gratuity obligation in a
scientific manner. Employers can avail of the tax




benefits as applicable to approved gratuity funds. The plan can also be customized to
structure schemes that can provide benefits beyond the statutory obligations.


                                                 106
FEATURES OF GROUP GRATUITY POLICY

     The funds approved by the Income-Tax commissioner to be administered through
      trustees with Trust deeds and rules are eligible for this product
     The contributions made by the employer have to be in an annual mode. However the
      monthly additions can be made for your employees who join the scheme during the
      year.
     There is a choice of three investment options - short-term debt, debt and balanced - in
      which ICICI PRUDENTIAL will manage the gratuity fund for the gratuity to the
      company formed by your organization.
     Actuarial services to provide a scientific estimation of the gratuity liability.




ADVANTAGES OF GROUP GRATUITY POLICY

     With the various investment options you have greater investment flexibility in
      deciding the asset allocation for your gratuity fund. Also switching between the
      various options is allowed depending upon your requirements and the prevailing rules
      of the company.
     The product offers full transparency of the performance of the various investment
      options by publication of biweekly Unit Value and regular disclosure of the portfolio
      of each of the investment option.
     The product offers greater value to the employee by packaging life insurance cover
      with the gratuity, with minimal amount of underwriting.
     The product has low explicit charge structure and the conditions for the exit are
      specified upfront.
     ICICI Pru also offers administrative convenience in terms of customized
      underwriting; faster claim settlement, easier access to information and regular
      statements.




                                             107
BENEFITS FOR EMPLOYEE

The contribution made by the employer is not included in the value of taxable perquisites in
the hands of the customer.

Gratuity received up to Rs 350000 is exempt from Income tax under Sec 10(10)

BENEFITS TO THE EMPLOYER

Annual contribution up to 8.33% of salary bill in a financial year is allowed a deduction for
the purpose of computation of profits and gains of business.

Contribution towards past service liability is allowed as deduction as per the Income Tax
rules.

Actuarial services to provide a scientific estimation of the gratuity liability.

GROUP TERM ASSURANCE

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.
It is a one-year renewable policy where one master policy covers all proposed employees
comprising the group. The minimum group size under one scheme should be 25. New
members can join the group and outgoing members can leave the group at any point during
the policy term.




ELIGIBILITY OF MEMEBER

        All employees above 18 years of age will be covered and maximum age for entry is
         59 years. Cover will cease on normal retirement date or completion of age 60 years if
         earlier
        All employees satisfying some basic insurability condition are eligible for coverage


                                               108
      Coverage will be allowed as long as the policy is in force and the Member is in
       employment of the scheme's employer

SUM ASSURED

Amount of cover is flexible and can be constant for all members or vary according to their
grade or salary. For each individual member Minimum Sum Assured is Rs. 1, 00,000/- and
Maximum Sum Assured is Rs. 25, 00,000/-.

BENEFIT UNDER GROUP TERM ASSURANCE

      Greater convenience for the employees with relaxed underwriting "Free Cover
       Limits" with simplified underwriting depending upon the number of employees in the
       group and the level of cover chosen.
      Guaranteed benefit: On death during the term of the contract (while in service), the
       sum assured will be paid to the beneficiary of the employee.
      Maturity Benefit: No benefits are payable to the members at the end of policy period
       or on earlier policy termination.

ADD-ON OPTION

There is choice of additional coverage in form of the add-ons:

      Accident and Disability Benefit Rider: Additional cover against accidents and
       disability in the form of a rider that can be attached to the plan. This cover provides
       payment of 100% of the Rider Sum Assured as a benefit on death. An additional
       100% of Rider Sum Assured will be provided on death due to accident while
       traveling as passenger on mass public surface transport via the company or train. On
       total permanent disability due to accident 10% of the Rider Sum Assured will be paid
       each year for ten years.
      Critical Illness Cover: Additional cover provides payment of a benefit on diagnosis
       of any of the 9 specified critical illnesses in the form of a rider that can be attached to




                                              109
       the plan. Any claims arising in this rider is paid on diagnosis and not as
       reimbursement.

PREMIUM PAID

   1. Premium will be paid by the employer and will be in the form of a single lump sum
       amount. Additional premium for new members joining the group will and medical
       requirements. be paid on a monthly basis as and when they join

BENEFIT FOR THE EMPLOYER

Employer is allowed the facility of showing the premium payment as the company’s expense
in the year of payment.

GROUP SUPERNNUATION PLAN

ICICI Pru offers a flexible Defined Contribution Superannuation scheme that provides for a
retirement kitty for each member of the group. The employee has the option of choosing
from various annuity options or opting for a partial commutation of the annuity at the time of
retirement. The employer can avail of tax benefits applicable to an approved Superannuation
trust. Term Insurance can be added to enhance the benefits for employees.

FEATURES OF GROUP SUPERNNUATION POLICY

      Employees can commute 1/3 rd of the retirement kitty and take an annuity of their
       choice with the remaining amount of the retirement kitty.
      This product also offers the benefit of an additional term insurance cover.
      Employees have the option of choosing from a pool of three different investment
       options. They can also switch between the investment options.
      The employee can choose from four annuity options

ADVANTAGES OF SUPERNNUATION POLICY




                                             110
      Greater control over investments to each member/employer as the asset allocation can
       be decided by choosing one or more of the investment options.
      Transparency of investment performance by publication of daily unit value and
       quarterly disclosure of portfolio.
      The product has low explicit charge structure and the conditions for the exit are
       specified upfront.
      Additional lives cover for the member employees with minimal underwriting.
      Administrative convenience in terms of the company to maximized underwriting,
       faster claim settlement, easier access to information, regular statements etc.

BENEFITS FOR THE EMPLOYEES

The employee has the benefit of having additional life cover with Superannuation to provide
protection to their family.

The employee has the benefit to opt for either partial commutation or take an annuity with
the whole amount in the retirement kitty.

BENEFITS FOR THE EMPLOYER

The employer can avail of the tax benefits applicable to an approved Superannuation to the
company.

The employer has the benefit of administrative convenience with easier access to the
information and transparency of the product and charge structure.

OTHER COMPANIES DISCRIPTION WHICH ARE WORKING IN INDIA

AMP SANMAR ASSURANCE COMPANY LIMITED

SANMAR GROUP

The Sanmar group is one of the largest industrial groups in South India, with a turnover for
1998-99 of close to Rs.10 billion. The group’s businesses are professionally managed by it’s



                                             111
over 650 highly qualified managers. It has a significant presence in the businesses that have
been identified as its ‘core’ areas: PVC/ Chlorochemicals, Specialist Chemicals, Shipping
and Engineering.

AMP

AMP Limited is one of the world's leading financial services businesses providing around
nine million customers world-wide with wealth creation and asset protection products and
services. AMP has been the largest life insurer in Australia, and one of the largest in NZ, for
most of the last century and is a major provider of superannuation and asset management
products and services. AMP has a significant presence in the UK through Pearl, London Life,
Virgin Direct and Henderson.




THE JOINT VENTURE

The initial paid up capital of the joint venture is Rs. 125 crore, wherein AMP would have a
stake of 26 percent and the Sanmar Group would hold 74 percent. The company expects to
break even by the end of seventh year of its operations. AMP Sanmar is targeting to sell
30,000 policies in the first year of its operations in India and hoping to collect Rs. 26 crore in
premiums in this period.

ALLIANZ BAJAJ LIFE INSURANCE COMPANY LIMITEDBAJAJ AUTO LTD.

                       Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated
in 1945 as Bachraj Trading Corporation. Initially it started by assembling two and three
wheelers in collaboration with Piaggio of Italy. After the expiry of the agreement in 1971 the
two and three wheelers acquired the brand name of Bajaj. The strength of the company lies in
its strong brand image and ability to offer value for money products leveraging on its large-
scale operations.

Bajaj is one of India's largest two and three - wheeler manufacturer and the fourth largest
manufacturer of two-wheeler in the world, with an annual turnover of Rs. 42.16 billion.


                                               112
ALLIANZ AG

Allianz group was founded in 1890 and is one of the world's leading insurance companies
with over 100 years' experience in insurance and related services. It is also the largest insurer
in Europe. Allianz group has multi-local structure and presence in over 70 countries. The key
business areas of Allianz group include General Insurance (property, engineering, marine,
motor, casualty and miscellaneous), Reinsurance, Risk Management, Life & health
insurance, Asset Management and Pension Funds Management under Allianz group. Rated
'AAA' by S&P it has assets over 670 billion DM (Rs. 17,160 billion) under its management
with employee strength of over 1, 05,700.

THE JOINT VENTURE

Allianz Bajaj Life Insurance Co. Ltd. Company is a joint venture between Allianz AG and
Bajaj Auto Limited. Characterized by global presence with a local focus and driven by
customer orientation to establish high earnings potential and financial strength, Allianz Bajaj
Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company received the
Insurance Regulatory and Development Authority (IRDA) Certificate of Registration (R3)
No 116 on 3rd August 2001 to conduct Life Insurance business in India.

BIRLA SUN LIFE INSURANCE CO.LTD.

THE ADITYA BIRLA GROUP

Aditya Birla Group is India's second largest business house, with a turnover of over $4.75bn
and an asset base of $3.8 bn. The Group is a well diversified conglomerate with 72,000
strong workforce spanning 40 Companies spread across 17 countries .The flagship
companies of the Group - Grasim, Hindalco, Indian Rayon and Indo Gulf - hold leadership
positions in their respective areas of business.

SUN LIFE ASSURANCE




                                               113
Sun Life Assurance Co. of Canada, established in 1871, is licensed in Canada, the U.S., the
Philippines, Hong Kong, and the U.K. Its major lines of business are life insurance, annuities
and mutual funds and investment services. Sun Life's rating reflects extremely strong
diversification of revenues and profitability, outstanding capitalization, good fundamental
earnings, and high-quality investments. In Canada, the company is especially strong in the
corporate life and health insurance and savings markets. In the U.S., the company is a top 20
player in the variable annuity market and a significant force in the upscale individual
insurance market. In the U.K., Sun Life is amongst the top 20 life and health insurers.

THE JOINT VENTURE

Birla Sun Life Insurance Company is a 74: 26 joint venture between Aditya Birla Group and
Sun Life financial Services of Canada. As on 1st March 2003, the company has an equity
capital of Rs. 180 crore. Birla Sun Life has Mr. Nani B Javeri as its CEO.

The company plans to focus on rural segment by leveraging the network of the Aditya Birla
Centre for Community Initiative and Rural Development in rural areas. The company's
distribution set up comprises insurance advisors for life and an expert marketing team for
group products.

DABUR CGU LIFE INSURANCE COMPANY PVT.LTD.

AVIVA PLC

Aviva Plc is the largest life and general insurance group of UK and the world's seventh
largest insurer with world wide premium income and retail investment sales of £28 billion
and more than £200 billion in assets under management. Aviva Plc is the holding company of
Aviva group of companies which is in to life assurance business, long term savings, all
classes of general insurance business and fund management. The group has 64,000
employees serving 25 million customers.

DABUR INDIA LIMITED




                                             114
Established in 1884, Dabur is one of India's oldest and largest groups of companies with
interests in ayurvedic specialties, pharmaceuticals, and personal care and healthcare products.
The annual sales turnover of the group is over Rs. 1200 crores. For more than a century
Dabur has worked in active collaboration with nature to provide the best of herbal health and
personal care products to its consumers.

THE JOINT VENTURE

Aviva Life Insurance Company, a joint venture between Dabur India and CGU, a wholly
owned subsidiary of Aviva Plc, is capitalised at Rs. 110 crore. Mr. Stuart Purdy is the
managing                  director                   of              Aviva                  Life.


Aviva Life has tied up with ABN Amro, Canara Bank, Laxmi Vilas Bank and American
Express for distribution of its products.

HDFC STANDARD LIFE INSURANCE CO.LTD.

HDFC

Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the
largest residential mortgage finance institution in the country. The corporation has had a
series of share issues raising its capital to Rs. 119 crores. The net worth of the corporation as
on March 31, 2000 stood at Rs. 2,096 crores.

HDFC operates through 75 locations throughout the country with its Corporate Headquarters
in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service
associates in Kuwait, Oman and Qatar.

STANDARD LIFE

Standard Life is Europe's largest mutual life assurance company. Standard Life, which has
been in the life insurance business for the past 175 years, is a modern company surviving
quite a few changes since selling its first policy in 1825. The company expanded in the 19th




                                               115
century from its original Edinburgh premises, opening offices in other towns and acquiring
other similar businesses.

Standard Life currently has assets exceeding over £70 billion under its management and has
the distinction of being accorded "AAA" rating consequently for the past six years by
Standard & Poor.




THE JOINT VENTURE

HDFC Standard Life Insurance Company Limited was one of the first companies to be
granted licence by the IRDA to operate in life insurance sector. Each of the JV player is
highly rated and been conferred with many awards. HDFC is rated 'AAA' by both CRISIL
and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and Poors.
These reflect the efficiency with which HDFC and Standard Life manage their asset base of
Rs. 15,000 Cr and Rs. 600,000 Cr respectively.

HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC
is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a
stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.

ING VYSYA LIFE INSURANCE COMPANY PVT LIMITED

VYSYA BANK

Vysya Bank is one of the most aggressive of the older-generation private-sector banks. With
the investment from a foreign partner, Bank Brussels Lamberts, in the equity of the bank, it is
expected to gear up to effectively fight competition in the new liberalized era. Vysya Bank is
a big player given its significant branch penetration. It has a very high degree of retail focus
with good customer service. The Vysya Bank is one of the largest private banks in India with
around 2 million customers and 480 retail outlets.

ING


                                              116
ING Group, with an asset base of over Rs. 28,42,000 crore is a global financial institution of
Dutch origin, which is active in the field of banking, insurance and asset management in
more than 60 countries, with nearly 90,000 employees. ING comprises a broad spectrum of
prominent companies working close to the customer, many of them operating under their
own brand names.

ING INSURANCE

ING Insurance is the world’s second largest life insurance company as per latest Fortune
rankings with a client base of over 50 million since it acquired ReliaStar and Aetna Financial
Services earlier this year. It is the third largest financial services company in Europe and the
tenth largest financial services company in the World.

THE JOINT VENTURE

ING has joined hands with Vysya Bank, one of India's leading private sector banks, to form
ING Vysya Life Insurance, which is expected to be the first Bank assurance venture in the
country. Together they have roped in GMR group, which has wide ranging interests in fields
such as power generation, infrastructure, manufacturing, software and banking.

As per the JV agreement, Vysya Bank would hold 49 per cent stake, ING 26 percent, and the
GMR Group would hold 25 per cent. The paid up capital of the joint venture is Rs. 110 crore.
The company which is headquartered at Bangalore has commenced its operations at Mumbai
and Delhi. Mr. Yvo Metzelaar is the Chief Executive Officer cum Managing Director of ING
Vysya Life Insurance

MET LIFE INDIA INSURANCE COMPANY LTD.

METROPOLITANT LIFE

MetLife India proudly carries a 135 year old legacy of helping build financial freedom for
everyone. Metropolitan Life Insurance Company ("MetLife"), a subsidiary of MetLife, Inc.
(NYSE: MET), is a leading provider of insurance and other financial services to individual
and institutional customers. The MetLife Companies serve approximately 12 million


                                              117
individuals in the U.S. and companies and institutions with 33 million employees and
members, including 88 of the Fortune 100 companies. MetLife also has, through its
subsidiaries and affiliates, international insurance operations in 12 countries. For more
information about MetLife, please visit the company's web site at www.metlife.com.




THE JOINT VENTURE

MetLife India Insurance Company Private Limited ("MetLife India") is the Indian affiliate of
Metropolitan Life Insurance Company ("MetLife"), the number one life insurer in the U.S,
based on approximately US$ 2.4 trillion in life insurance in-force as of December 31, 2002.
MetLife India was incorporated in April 2001 as a joint venture between MetLife
International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private
Limited and other private investors.

MetLife India benefits from its affiliated company's 135-year old expertise and track record
of establishing successful operations in emerging markets, in addition to the unique strengths
of its Indian promoters. MetLife India offers a range of innovative products and aims to build
financial freedom for everyone. MetLife India is headquartered in Bangalore and has offices
in 9 cities and an additional 1,000 outreach points through its distribution channel partners.
For more information about MetLife India, please visit the company's web site at
www.metlifeindia.com.

OM KOTAK MAHINDRA LIFE INSURANCE CO.LTD.

KOTAK MAHINDRA BANK LTD. (KMBL)

Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the
Kotak Mahindra Group. It was actually incorporated as Kotak Capital Management Finance
Limited on November 2, 1985 and obtained its ‘Certificate of Commencement of Business
on February 11, 1986. With the liberalisation of the Indian economy and the opening up of


                                             118
the financial markets, the Company diversified and started offering a wider spectrum of
financial services.

OLD MUTUAL PLC.

Old Mutual plc. is a leading financial services provider in the world, providing a broad range
of financial services in the area of insurance, asset management and banking. It is a leading
life insurer in South Africa, with more than 30% market share. The partnership with Old
Mutual plc. Provides the Kotak Mahindra group with an international perspective and
expertise in the life insurance business.

THE JOINT VENTURE

The joint venture OM Kotak Mahindra Life Insurance started off with an initial net worth of
Rs. 150 crore, with 74:26 stake between KMBL and OM

The Life Insurance business offers KMBL with an opportunity to leverage its core strengths
of Wealth Management and Retail Distribution.

SBI LIFE INSURANCE COMPANY LTD.

SBI

State Bank of India (SBI) started its business way back in 1806 as Bank of Bengal. Today
SBI is the largest bank in the country with more than 9000 branches. It has seven associate
banks and together they have 30% of the Indian market share.




                                             119
It has the distinction of being the strongest and amongst the most profitable bank in the
country. Net worth of SBI as on March 2000 stood at Rs. 12146 crore (US$ 2784 mn) and it
has a deposit base of Rs 19,680.3 crore (US$45,121mm).

The insurance venture, SBI-Life, is a step aimed at being a universal bank as it already has
subsidiaries for housing finance, merchant banking, mutual funds and primary dealership in
government papers and factoring businesses.

CARDIF

BNP Paribas, which is one among the three largest banks in Europe, is the holding company
of Cardif. BNP's presence in India dates as far back as 1860 and has 9 branches here.

Cardif, the insurance arm of BNP Paribas was set up in 1973 that specializes in long-term
savings, protection products and creditor insurance. In 1999 its premium income stood at
US$ 4 billion, with assets worth over US $ 23 billion under its management

Cardiff based in France, has the expertise for selling insurance products through banks and
has operations in over 20 countries.

THE JOINT VENTURE

India's largest bank SBI and Cardiff S.A a leading insurer in France came together to form
SBI Life. It would be a 74:26 venture; with Cardif the foreign partner contributing 26% in
the paid capital of Rs. 250 crore. SBI would market the insurance products through select
branches of SBI and its seven associate banks. Mr. R. Krishnamurthy is the CEO of SBI Life.




TATA AIG LIFE INSURANCE CO.LTD.

TATA GROUP

Tata Enterprises with 82 companies, spread over seven sectors and with an annual turnover
exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has shown over


                                              120
years that it is a value driven company and has pioneering contributions in various fields
including insurance, aviation, iron and steel. Tata companies have forged a number of global
alliances with eminent international partners in several fields. In terms of capital market
performance as many as 40 listed Tata companies account for nearly 5% of the total market
capitalization of all listed companies. The Group has had a long association with India's
insurance sector having been the largest insurance company in India prior to the
nationalisation of insurance.

TATA GROUP INSURANCE

The Late Sir Dorab Tata was the founder Chairman of New India Assurance Co. Ltd., a
group company incorporated way back in 1919. Government of India took over the
management of this company as a part of nationalization of general insurance companies in
1972. Not deterred by the move, Tata group have ventured into risk management services
having tied up with AIG group, back in 1977, with the incorporation of Tata AIG Risk
Management Services Pvt. Ltd.

AIG

American International Group, Inc is the leading U.S. based international insurance and
financial services organization and the largest underwriter of commercial and industrial
insurance in the United States. Its member




companies write a wide range of commercial and personal insurance products through a
variety of distribution channels in over 130 countries and jurisdictions throughout the world.

AIG's Life Insurance operations comprise of the most extensive worldwide network of any
life insurer. AIG's global businesses also include financial services and asset management,
including aircraft leasing, financial products, trading and market making, consumer finance,
institutional, retail and direct investment fund asset management, real estate investment
management, and retirement savings products.



                                             121
THE JOINT VENTURE

Tata AIG Life Insurance Co. Ltd. is capitalised at Rs. 185 crores of which 74 per cent has
been brought in by Tata Sons and the American partner brings in the balance 26 per cent. Mr.
George Oommen has been named managing director of Tata AIG Life.

Tata-AIG plans to provide broad array of life insurance plans to cover to both individuals and
groups.

LIFE INSURANCE CORPORATION LTD.

LIC has been established by an act of the Parliament and started functioning from 1-9-1956.
It is an autonomous body authorised to run the life insurance business in India with its Head
Office at Mumbai.

It has 7 zonal offices, over 100 Divisional offices and 2048 branches in India, with around
6.51 lakh agents. The Corporation also has offices in London, Fiji and Mauritius.




UNIT LINKED v/s TRADITIONAL POLICIES
While the insurance sector was opened up to private sector, a number of players launched
their policies on unit-linked platform. Two years down the line, they have been quite,
successful in persuading the Indian customer to buy unit-linked policies.
ICICI Prudential, number one among private insurer, earned 50% of its new premium income
i.e. Rs. 365 cr. From unit-linked policies in 2002-2003.While Birla Sun Life, which is that, is
number two earned Rs. 149 from unit-linked policies? Together they account for about 52%
insurance sold by private players that shows the market has responded positively to unit-
linked policies.
GREATER TRANSPARENCY
The basic reason why unitLinked policies appealed customers is that they are very
          transparent.
Unit-linked policies operate as follows:



                                             122
Insurance company deducts annual charges.
     With the rest (the investment part of the premium) it buys units for the customers.
      Thereafter, customer can track how much is investment is worth, just as
      In mutual -funds, He also knows where his money is invested.


Traditional policies, on other hand don't reveal much,
They may or may not disclose their charges.
          The investible surplus of all investors is pooled together and is managed by
               fund manager.
           




              Individual investor cannot know what his individual investment is worth at
               given point of time. He also not told where the money is invested.


All this did not matter in, the past when traditional policies offered guaranteed Returns.
Then, there was no need for investor to keep an eye on nitty-gritty. Now with interest rate
having gone down, insurance companies are finding it very difficult to offer guaranteed rates
of return over a long period of time. Under these circumstances, customer wants to see how
their investments have grown from one year to next year.


INVEST RISKS
In unit-linked policies investment risk is borne by individual not as in traditional policies
where the investment risk is borne by insurance companies. At the time of buying the policy
the agent shows an illustration on how your investment will grow over tenure of policy.
These assumptions are based on prevailing investment environment. The insurance company
tries to meet these projections as closely as possible. Of course there are no guarantees and
company may sometimes miss its target.


CROSS SUBSIDIZATION




                                             123
Cross subsidization and lack of transparency in traditional policy, can also work against the
customer .Support one insurer pays above market return on one policy (in effort to notch up
very high sales on that policy), say 8% on single premium bonds, at a time when yield on 5-
years




government security is only 6%. How will it pay these above market return to those who
invested in single premium bonds? It will cross subside returns earned from investments of
other policies (money back, endowment, etc.) to pay those returns.
So the investor who invested in these other policies would get a part of returns on his
investments, but not all that is due to him. Such malpractices can never happen in unit-linked
policies where you get regular statement informing you about the exact value of your
investments.
To draw an analogy, the traditional policy is like a joint family where there is safety net
(against adverse circumstances) but there is always the risk that the distribution of wealth
may not be equitable among all the stakeholders. The unit-linked policy is like the nuclear
family, where what you earn is yours. But don’t expect a safety net here you live purely on
how fund performs.


COMPARISON OF POLICIES OFFERED BY ICICI PRUDENTIAL WITH OTHER
                                       COMPANIES


                                                   OM        Kotak:Child
Attributes               SmartKid                                            LIC:Jeevan Kishor
                                                   Advantage
Age at Entry (Min - for parents with child For the child: 0 to 17
                                                                             Child between 1-12
Max)                     0-12 yrs                  years
                         Age of the child at
Term (Min - Max)         maturity between 22 10 - 30 years                   15-35 years
                         to 25 - current age
                         Min Rs.8000 (for 30
Premium                                            N.A.                      N.A.
                         yr male, 20 yr term)


                                             124
                                                If dth of life assured
                                                (Child) occurs within
                     Sum           assured, 5              years        of
                     Premium          waiver commencement                -
                                                                             Sum      assured   +
Death Benefits       benefit , Guaranteed return           of    premium
                                                                             Bonus
                     benefits pd even if Else if dth                occurs
                     death benefit paid         after     5     years   of
                                                SA+bonus                to
                                                beneficiary
                                                Premium waiver (Life
                                                guardian benefit) : on Premium waiver : on
                     Income        benefit, death of proposer all death of proposer all
Riders
                     Accident Benefit           future           premium future          premium
                                                waived                       waived
                                                ADBR for proposer
                                                15 yr: At assmed 10%
Returns              20 yr: 6.5%                on      allocated   funds N.A.
                                                return : 6.83%
                                                For a 15 year term
Premium Type         regular                    Premium payable for regular
                                                15 years : Rs.6640
Guaranteed           at t-7 =20% of             N.A.                         N.A.
                     at t-7 =20% of SA, t-
Guaranteed           5 : 25%,t-2 :25%,end
                                                N.A.                         N.A.
Additions, Bonuses   of     term       :30%
                     +GA+bonus
                     Min:          100,000                                   Min         Rs.10,000
Sum Assured                                     Max Rs. 25,00,000
                     Max: 30,00,000                                          Max Rs.10,00,000




                                          125
Loan Facility   No         available   No




                     126
                                                    LIC:Jeevan                   HDFC:Personal
         Attributes   ForeverLife
                                                    Suraksha                     Pension Plan
                      Deferred Annuity With Deferred                  Annuity Deferred       Annuity
Type of Plan
                      Life Cover                    W/out Life Cover             W/out Life Cover
                                                                                 SP Plan Min : 35
                                                                                 years Max : 60
Age at Entry (Min - Min : 18 years Max : 60 For all Plans Min: 18 years
Max)                  years                         years Max: 65 years          Regular Premium
                                                                                 Plan Min : 18 years
                                                                                 Max : 60 years
                                                                                 SP Plan Min : 5
                                                                                 years     Max:    15
                      Min      :        5    years For all Plans Min: 2 years
Term (Min - Max)
                      Max: 30 years                 years Max: 35 years          Regular Premium
                                                                                 Plan Min : 10 years
                                                                                 Max : 40 years
                                                    SP Plan: Min: Rs.
                                                    10,000
                      Min          limit:    None
Premium                                             Reg Prem Plan Min. N.A.
                      Max limit: None
                                                    Annual Premium of
                                                    Rs. 2,500
                                                    No     Death      Benefit.
                                                                                 No Death Benefit.
                      Acts like an endowment Premium
Death Benefits                                                                   only     Return    of
                      policy during deferment       returned@5%pa
                                                                                 Premium
                                                    compounded
                      ADBR,        LTAR,    CIBT,
                      MSAR
                      CI & MSAT cvrs can be
                                                    Only        for       RP
Riders                enjoyed for addnl 10 yrs                                   No Riders
                                                    Term Rider option
                      free of cost provided rider
                      maturity ages are not
                      reached earlier
                                                    Single         Premium Single            Premium
Premium Type          Regular Premium
                                                    Regular Premium              Regular Premium
                                                                                 Single      Premium
Premium Payment                                     Single Premium and
                      Regular Premium                                            and         Regular
Options                                     127     Regular Premium
                                                                                 Premium
Premium               Premium will be               Premium will be              Premium will be
                                                                     HDFC:Money
Attributes          CashBak                   LIC:Money Back
                                                                     Back
                    15    Years     or   20
Term (Min - Max)                              20 Years, 25 Years     10,15,20,25,30 yrs.
                    Years
                    Rs.6592 for a 20                                 Rs    7,585   for   20
Premium                                       Rs. 6,380 for 20 yrs
                    Years                                            Years
Maturity Benefits   120%                      100%                   100%
                    ADBR,            CIBR,                           Acc.Ben,
                    MSBR,            LTR, ADBR, Waiver of CIBR(standalone),
Riders
                    Waiver               of Premium                  LTR (DSA), Waiver
                    Premium                                          of Premium
Maturity Amount     Rs.1,69,112               Rs. 1,70,000           Not available
IRR                 7.45% for 20 yrs          7.81% for 20 yrs       -
                    1)      120%         SA
                                                                     CI         Standalone
                    obtained 2) MSA 1) Highest returns
Strengths                                                            Rider, Low entry
                    rider    3)    Flexible 2) Lowest premium
                                                                     age
                    rider options
                    Yr3-10% Yr6-15%
                                              Yr5-25%        Yr10- Yr5-30%           Yr10-
Survival Ben for 15 Yr9-20%          Yr12-
                                              25% Yr15-50% + 30% Yr15-40% +
Year Term           25%           Yr15-50%
                                              Bonus                  Bonus
                    +GA +Bonus
Survival Ben for 20 Yr4-10% Yr8-15% Yr5-20%                  Yr10- Yr5-25%           Yr10-



                                          128
Year Term          Yr12-20%           Yr16- 20%               Yr15-20% 25% Yr15-25% Yr
                   25%Yr20-50%                  Yr20-40% 65pta              20-25% + Bonus
                   +GA+Bonus




Attributes         Save'n'Protect               LIC:Endowment               HDFC:Endowment
Term (Min - Max)   ( 10 yr - 30 yr)             ( 5 yr - 55 yr)             (10 yr -30 yr)
Premium            Rs. 4,484                    Rs.4,796                    Rs.4,835
                                                                            Acc    Ben,      LTR
                   ADBR,              LTR,
                                                                            (Double          SA),
                   CIBR,MIBR,                   ADBR, Waiver of
Riders                                                                      CIBR(Standalone),
                   Waiver                  of Premium
                                                                            Waiver               of
                   Premium
                                                                            Premium
Returns 5 Years    8.73%                        N.A.                        N.A.
Maturity Amount    Rs. 2,41,171                 Rs. 2,40,000                Not available
                   8.7%     for     20     yr 8.1%       for      20   yr
IRR                                                                         Not Available
                   term                         term
                   1).     Lowest        Base
                                                1). High returns till
                   premium        &      high
                                                term     15     years2).
                   returns2). Extended
                                                Single         Premium
                   Life Cover3). Only
                                                option3).       Limited
Strengths          company               with                               1). CI Stand alone
                                                payment
                   MSA4).         Flexible
                                                endowment4).
                   rider          option5).
                                                Double
                   Comprehensive CI
                                                Endowment
                   cover




                                            129
CONCLUSION

FINDINGS OF THE STUDY:
1.      People in the age group of 30-40 years are the largest buyers of life insurance.
2.      More than half of them buy for tax planning.
3.      People from all income groups buy life insurance.
4.      More than 50% are satisfied with the extent of their life insurance cover. They are
not interested in buying more life insurance.
5.      The most type of product is save 'n' protect as it gives the 5 years extended life
coverage, the pension plans, and the parents are much concerned about the future of their
child therefore they prefer to buy children's smart kid also.
6.      Some people have their doubts on the credibility and long stay of private insurers.
7.      Many people were interested in buying medical insurance due to high cost of medical
expenses in riders.
8.      Many people like the housewives have no idea about what type of insurance cover
they have.




SUGGESSTIONS OF THE STUDY:
Based on major findings of study, the researcher has come out with some viable suggestions:
1.      Advertisement of products should stress on the need of security.
2.   Insurance should be popularized as means of securing further rather than saving tax.
3.   New entrants should come out with innovative riders especially covering medical
     expenses that will compete with the mediclaim.
4.   Children policies should be launched in big numbers and with various payment facilities.
5.   Policies should be issued quickly with less formalities language of the brochure should
     be simple and easy to understand.
6.   Insurance agents should be well trained; they should know each and every thing about
     the policy and the recent changes in the policy.


                                                130
LIMITATION OF STUDY
No study is generally foot proof or error free. This study has also get some limitations given
below:


   1. Most of the HR heads were either not very willing to spend time in discussing about
         their insurance policies or were reluctant to tell about their plans for the fear of
         receiving unsolicited calls from the insurance company in order to promote its
         policies. Also fixing up an appointment with the senior HR executives was a major
         fight and required continuous calling and visiting.
   2. The new financial advisor proposals that were held up due to requirement of consent/
         withdrawal letter were shown lying pending in the system resulting in a higher TAT.
         It was suggested that call reminders be sent to such customers by operation
         department to follow up the speedy conversation.
   3. The respondents were salaried class only.
   4. Since the study involved a thorough analysis of the insurance market and relative
         study of various players offering the similar products and that of similar, it was
         required a dedicated labors in term of both time and effort. Since the curriculum did
         not permit more time, the study had to be very limited.




FURTHER SCOPE OF STUDY
There is a lot of scope of further scope since the research was undertaken for short time and
at the end of financial year closing. Due to busy schedule of deep analysis could not be made.
The researcher is assured of the fact that if the research is carried out for longer duration then
further interesting findings could be revealed. However, maximum efforts had been applied
in comparing the company’s policies to the other ones; the research can further take a more
comparative study of other company’s product as well as the past performance of satire




                                               131
products of the company, Also how different riders could be clubbed to Jet maximum value
of money for customers.




                                        APPENDIX –I


                                     PROPOSAL FORM




1. Nature of Proposal:
2. Purpose of Insurance:
3. Nature of Work:
4. How do you know the Life to be Assured/Proposer?
5. How long have you known the Life to be Assured/Proposer?
6. Is the Life to be Assured/Proposer related to you: Give details if yes?
8. Personal Asset Details:
7. Income Details of the Proposer (Rs. per Annum)
9. General Health Details of Life to be assured as informed to you:
10. Any other risk associated with occupation, sports pursuit, financial/social position or
personal habits of life to be assured/annuitant
That could affect the risk in the insurance proposal, please provide details.
1. Do you agree with the ACR by your Advisor?
2. By whoom were you introduced to the Life to be Assured/Proposer?
3. Are you satisfied about the identity of the Life to be Assured/Proposer?
4. Are you satisfied with the declared age of the Life to be Assured/Proposer?
5. What is your assessment about the general state of health of the Life to be assured?
6. Does the Life to be assured have any physical deformity or impairment?
Salary (per annum) Business Agricultural Others (Specify) Grand Total
Non-Medical



                                              132
Income proof verified ITR Form 16 Pay Slip Balance Sheet P&L Others
(Pls Specify)
(a) House (b) Vehicle Owned Rented Co. Provided 4 - Wheeler 2 - Wheeler None
Physical Handicap/Deformity
History of any Illness/Surgery
Mental Retardation
Medical Investigations done
Confidential Report (To be compulsorily filled by the Advisor / FSC) :
If answer to any of the above questions is yes, provide details
If no please give details




                                           133
QUESTIONNAIRE-II


1. Are you aware regarding the privatization of the insurance industry?
   Yes / No
2. Which new companies are you aware of in Life Insurance sector?
     A …………………..
     B …………………..
     C …………………..
     D ………………….
3. Are you aware of these Life Insurance Companies?
  Yes / no
4. Would you be willing to consider buying insurance products from any of these
Companies?
  Yes / no
5. Do you buy any insurance policy?
  Yes / no
6. Do you plan to buy a life insurance policy in the next 6 months?
  Yes / no




PERSONAL DETAILS
1. Name:
2. Age:
3. Address (office/residence):
4. Telephone Number:
   Residence:                     Office:                   Mobile:
5. What are your educational qualifications?
   10th          12th            Graduate            Post Graduate
6. What is your current Occupation?



                                               134
   Salaried            Self-employed                 Student
7. How many members do you have in your family?
8. Are you the income earner in the family?
   Yes /no
9. Do you have any sales experience? If yes, how many years?
10. Do you currently have an agency for any insurance company? If yes?
   Life                       General
   Which company
11. Would you like to give any reference? (Any)




FINDINGS




                                                                             1
                                                                             2
                                                                             3
                                                                             4




       1. The violet part shows that the larger number of people was not aware about the
          privatization of insurance sector.
       2. The yellow one show that people are busy and don’t have time for other work.
       3. The red one implies – no interest.
       4. The blue shows the interest of people.



                                               135
LEARNINGS
     Get the great exposure to the public at large.
     Learn a lot about insurance sector.
     Importance/necessity of insurance
     Gain the convincing capabilities
     Various products of insurance and their benefits
     Know about the company and its work culture.




                                            136

				
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Description: Insurance is a contract between two parties whereby one party called the insurer, undertakes to compensate the other party known as insured in the event of loss in consideration of premium. Insurance is a protection against a financial loss arising on the happening of an unexpected event. Insurance company collects premium to provide for this protection. A loss is paid out of this premium collected from the insuring public. The insurance company act as a trustee to the amount collected through premium.