PROJECT REPORT ON FIELD STUDY IN INSURANCE SECTOR DECLARATION BY THE LEARNER PREFACE 1 Practical studies form an integral part of the P.G.D.B.A. program. Only classroom training without any practice is of no use. As it is said: “Theory without practice has no fruit. Practice without theory has no root” The proverb is enough to understand the interdependence of theory and practical on each other. Teaching gives on insight into the theoretical aspects of management, but implementation of theory gives practical knowledge of the management field. In report writing various skills like analytical skills, communication skills, group behavior skills etc. are used. By writing reports students can learn all these skills. This is the reason why the practical studies are included in P.G.D.B.A Program. Before I present this report, I would like to say that, it is a mirror on a reflection of whatever I observed and came through during my project training. ACNOWLEDGEMENT 2 The main purpose of practical training is to make additional industrial world business practice. I was fortunate enough to get support from a large number of persons to whom I shall always remain thankful. I would like to express my sincere gratitude towards “ICICI Prudential Life Insurance Co.” for providing me the opportunity to undergo industrial training in their reputed organization. I pay thanks to Mr. Vimal Dhamija (Branch Manager) and Mr. Manish Gupta (Manager) of “ICICI Prudential Life Insurance Co.” for their help and I am also thankful to all the staff that directly or indirectly supported me. I would like to express my sincere ineptness to my Project Guide for his constant guidance and valuable support during the project work. Encouragement and excellent guidance in the successful completion of the project work. And of course, I wish to take this opportunity to express my sincere gratitude to my parents, for their unconditional support and encouragement throughout the project. I would also like to express my thanks to my brother, for their much support during my project, and God almighty to shower blessing on me. OBJECTIVE OF THE STUDY 3 Management as a profession can’t be taught merely in the four walls of classrooms. Only theoretical knowledge is not sufficient to build competitive managers. Practical knowledge of the business environment is equally important. In today business world, insurance sector is running towards its booming stage. This industry still has many things to come up to, so many changes and opportunities will be given by insurance industry. So I choose insurance industry for my project report in P.G.D.B.A. I choose ICICI Prudential Life Insurance is one of those private insurance players who entered the market before few years and made its own place among all its competitors. This report is shows insurance sector & how insurance is most important part of life. And understand insurance definitions, different providers of life insurance and comparisons. It also shows ICICI Prudential Life Insurance’s Products. As a Trainee ICICI Prudential Life Insurance give me very practical knowledge about life insurance and how to working in organization, How manage work, how to maintain relations with top level management as well as colleges and bottom level management. So, this experience will helpful in future. I am pleased by taken training at India’s one of the best insurance company. TABLE OF CONTENT 4 Sr Content’s Page No. 1 Preface 4 2 Acknowledgement 5 3 Objective of the Study 6 4 Introduction 8 5 Company Profile: 26 ICICI Group 26 Prudential Plc 28 ICICI Pru Life Insurance 29 Management 31 Company Name & Address 32 6 Company’s Products 33 7 Finance Department 75 8 Research Design & Methodology 81 9 Questionnaire 90 10 SWOT Analysis 94 11 Conclusion 95 12 Bibliography 96 INTRODUCTION 5 INSURANCE: Insurance or assurance, device for indemnifying or guaranteeing an individual against loss. Reimbursement is made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts, called premiums. Payment for an individual loss, divided among many, does not fall heavily upon the actual loser. The essence of the contract of insurance, called a policy, is mutuality. The major operations of an insurance company are underwriting, the determination of which risks the insurer can take on; and rate making, the decisions regarding necessary prices for such risks. The underwriter is responsible for guarding against adverse selection, wherein there is excessive coverage of high risk candidates in proportion to the coverage of low risk candidates. In preventing adverse selection, the underwriter must consider physical, psychological, and moral hazards in relation to applicants. Physical hazards include those dangers which surround the individual or property, jeopardizing the well-being of the insured. The amount of the premium is determined by the operation of the law of averages as calculated by actuaries. By investing premium payments in a wide range of revenue-producing projects, insurance companies have become major suppliers of capital, and they rank among the nation's largest institutional investors. GENERAL DEFINITION: The general definitions are given by the social scientists & they consider insurance as a device to protection against risks, or a provision against inevitable contingencies or a co-operative device of spreading risks. Some of such definitions are given below: In the words of John Magee, “Insurance is a plan by which large number of people associate themselves & transfer to the shoulder of all, risks that attach to individuals.” In the words of Sir William Bevridges, “The collective bearing of risks is insurance.” In the words of Boone & Kurtz, “Insurance is a substitution for a small known loss (the insurance premium) for a large unknown loss, which may or may not occur.” In the words of Thomas, “Insurance is a provision, which a prudent man makes against for the loss or inevitable contingencies, loss or misfortune.” In the words of Allen Z. Mayerson, “Insurance is a device for the transfer to an insurer of certain risks of economic loss that would otherwise come by the insured.” In the words of Ghosh & Agarwal, “Insurance is a co-operative form of distributing a certain risk over a group of persons who are exposed to it.” 6 FUNDAMENTAL STATEMENT: These are based on economic or business oriented since it is a device providing financial compensation against risk or misfortune. In the words of D. S. Harsell, “Insurance may be defined as a social device providing financial compensation for the effects of misfortune, the payments being made from the accumulated contribution of all parties participating in the scheme.” In the words of Robert I. Mehr & Emerson Cammark, “Insurance is purchased to offset the risk resulting from hazards, which exposes a person to loss.” In the words of Riegel & Miller, “Insurance is a social device whereby the uncertain risks of individuals may be combined in a group & thus made more certain small periodic contributions, by the individuals providing a fund, out of which, those who suffer losses may be reimbursed.” Characteristics of Insurance: Sharing of Risks Insurance is a co-operative device to share the burden of risk, which may fall on happening of some unforeseen events, such as the death of head of the family, or on happening of marine perils or loss of by fire. Co-operative Device Insurance is a co-operative form of distributing a certain risk over a group of persons who are exposed to it (Ghosh & Agarwal). A large number of persons share the losses arising from a particular risk. Evaluation of Risk For the purpose of ascertaining the insurance premium, the volume of risk is evaluated, which forms the basis of insurance contract. Payment of happening of specified event On happening of specified event, the insurance company is bound to make payment to the insured. Happening of the specified event is certain in life insurance, but in the case of fire, marine or accidental insurance, it is not necessary. In such cases, the insurer is not liable for payment of indemnity. Amount of payment 7 The amount of payment in indemnity insurance depends on the nature of losses occurred, subject to a maximum of the sum insured. In life insurance, however, a fixed amount is paid on the happening of some uncertain event or on the maturity of the policy. Large number of insured persons The success of insurance business depends on the large number of persons insured against similar risk. This will enable the insurer to spread the losses of risk among large number of persons, thus keeping the premium rate at the minimum. Insurance is not a gambling Insurance is not a gambling. Gambling is illegal, which gives gain to one party & loss to the other. Insurance is a valid contract to indemnity against losses. Moreover, insurable interest is present in insurance contracts & it has the element of investment also. Insurance is not charity Charity pays without consideration but in the case of insurance, premium is paid by the insured to the insurer in consideration of future payment. Protection against risks Insurance provides protection against risks involved in life, materials & property. It is a device to avoid or reduce risks. Spreading of risk Insurance is a plan, which spread the risks & losses of few people among a large number of people. John Magee writes, “Insurance is a plan by which large number of people associates themselves & transfer to the shoulders of all, risks attached to individuals.” Transfer of risk Insurance is a plan in which the insured transfers his risk on the insurer. This may be the reason that Mayerson observes, that insurance is a device to transfer some economic losses to the insurer, and otherwise such losses would have been borne by the insured themselves. Ascertaining of losses By taking a life insurance policy, one can ascertain his future losses in terms of money. This is done by the insurer to determining the rate of premium, which is calculated on the basis of maximum risks. A contract 8 Insurance is a legal contract between the insurer & insured under which the insurer promises to compensate the insured financially within the scope of insurance policy, & the insured promises to pay a fixed rate of premium to the insurer. Based upon certain principle Insurance is a contract based upon certain fundamental principles of insurance, which includes utmost good faith, insurable interest, contribution, indemnity, causa proxima, subrogation, etc., which are the basis for successful operation of insurance plan. Utmost Good Faith Insurance is a contract based on good faith between the parties. Therefore, both the parties are bound to disclose the important facts affecting to the contract before each other. Utmost good faith is one of the important principles of insurance. To conclude, insurance is a device for the transfer of risks from the insured to the insurers, who agree to it for a consideration (known as premium), & promises that the specified extent of loss suffered by the insured shall be compensated. It is a legal contract of a technical nature. The History of Insurance in the world: The roots of insurance might be traced to Babylonia, where traders were encouraged to assume the risks of the caravan trade through loans that were repaid (with interest) only after the goods had arrived safely a practice resembling bottomry and given legal force in the Code of Hammurabi (c.2100 B.C.). The Phoenicians and the Greeks applied a similar system to their seaborne commerce. The Romans used burial clubs as a form of life insurance, providing funeral expenses for members and later payments to the survivors. With the growth of towns and trade in Europe, the medieval guilds undertook to protect their members from loss by fire and shipwreck, to ransom them from captivity by pirates, and to provide decent burial and support in sickness and poverty. By the middle of the 14th cent., as evidenced by the earliest known insurance contract (Genoa, 1347), marine insurance was practically universal among the maritime nations of Europe. In London, Lloyd's Coffee House (1688) was a place where merchants, ship-owners, and underwriters met to transact business. By the end of the 18th cent. Lloyd's had progressed into one of the first modern insurance companies. In 1693 the astronomer Edmond Halley constructed the first mortality table, based on the statistical laws of mortality and compound interest. The table, corrected (1756) by Joseph Dodson, made it possible to scale the premium rate to age; previously the rate had been the same for all ages. 9 Insurance developed rapidly with the growth of British commerce in the 17th and 18th cent. Prior to the formation of corporations devoted solely to the business of writing insurance, policies were signed by a number of individuals, each of whom wrote his name and the amount of risk he was assuming underneath the insurance proposal, hence the term underwriter. The first stock companies to engage in insurance were chartered in England in 1720, and in 1735, the first insurance company in the American colonies was founded at Charleston, S.C. Fire insurance corporations were formed in New York City (1787) and in Philadelphia (1794). The Presbyterian Synod of Philadelphia sponsored (1759) the first life insurance corporation in America, for the benefit of Presbyterian ministers and their dependents. After 1840, with the decline of religious prejudice against the practice, life insurance entered a boom period. In the 1830s the practice of classifying risks was begun. The New York fire of 1835 called attention to the need for adequate reserves to meet unexpectedly large losses; Massachusetts was the first state to require companies by law (1837) to maintain such reserves. The great Chicago fire (1871) emphasized the costly nature of fires in structurally dense modern cities. Reinsurance, whereby losses are distributed among many companies, was devised to meet such situations and is now common in other lines of insurance. The Workmen's Compensation Act of 1897 in Britain required employers to insure their employees against industrial accidents. Public liability insurance, fostered by legislation, made its appearance in the 1880s; it attained major importance with the advent of the automobile. In the 19th cent. many friendly or benefit societies were founded to insure the life and health of their members, and many fraternal orders were created to provide low-cost, members-only insurance. Fraternal orders continue to provide insurance coverage, as do most labor organizations. Many employers sponsor group insurance policies for their employees; such policies generally include not only life insurance, but sickness and accident benefits and old-age pensions, and the employees usually contribute a certain percentage of the premium. Since the late 19th cent. there has been a growing tendency for the state to enter the field of insurance, especially with respect to safeguarding workers against sickness and disability, either temporary or permanent, destitute old age, and unemployment (see social security). The U.S. government has also experimented with various types of crop insurance, a landmark in this field being the Federal Crop Insurance Act of 1938. In World War II the government provided life insurance for members of the armed forces; since then it has provided other forms of insurance such as pensions for veterans and for government employees. After 1944 the supervision and regulation of insurance companies, previously an exclusive responsibility of the states, became subject to regulation by Congress under the interstate commerce clause of the U.S. Constitution. Until the 1950s, most insurance companies in the United States were restricted to providing only one type of insurance, but then legislation was passed to permit fire and casualty companies to underwrite several classes of insurance. Many firms have since expanded, many mergers have occurred, and multiple-line companies now 10 dominate the field. In 1999, Congress repealed banking laws that had prohibited commercial banks from being in the insurance business; this measure was expected to result in expansion by major banks into the insurance arena. In recent years insurance premiums (particularly for liability policies) have increased rapidly, leaving unprecedented numbers of Americans uninsured. Many blame the insurance conglomerates, contending that U.S. citizens are paying for bad risks made by the companies. Insurance companies place the burden of guilt on law firms and their clients, who they say have brought unreasonably large civil suits to court, a trend that has become so common in the United States that legislation has been proposed to limit lawsuit awards. Catastrophic earthquakes, hurricanes, and wildfires in late 1980s and the 90s have also strained many insurance company's reserves. HISTORY OF INSURANCE SECTOR IN INDIA The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 - 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. 11 Some of the important milestones in the general insurance business in India are: 1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. • LIC Housing Finance. • Cholamandalam General Insurance • Glaxosmithkline Consumers • American Express Indian Insurance Market-History: Insurance has a long history in India. Life Insurance in its current form was introduced in 1818 when Oriental Life Insurance Company began its operations in India. General Insurance was however a comparatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata. History of Insurance in India can be broadly bifurcated into three eras: a) Pre Nationalisation b) Nationalisation and c) Post Nationalsiation. Life Insurance was the first to be nationalized in 1956. Life Insurance Corporation of India was formed by consolidating the operations of various insurance companies. General Insurance followed suit and was nationalized in 1973. General Insurance Corporation of India was set up as the controlling body with New India, United India, National and Oriental as its subsidiaries. The process of opening up the insurance sector was initiated against the background of Economic Reform process which commenced from 1991. For this purpose Malhotra Committee was formed during this year who submitted their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly Indian 12 Insurance was opened for private companies and Private Insurance Company effectively started operations from 200 Insurance Market Present The insurance sector was opened up for private participation four years ago. For years now, the private players are active in the liberalized environment. The insurance market have witnessed dynamic changes which includes presence of a fairly large number of insurers both life and non- life segment. Most of the private insurance companies have formed joint venture partnering well recognized foreign players across the globe Capital requirement and foreign participation. Minimum capital requirement for direct life and Non-life Insurance company is INR1000 million and that for reinsurance company is INR2000 million. A maximum 26% foreign equity stake is allowed in direct insurance and reinsurance companies. In the 2004-05 budget, the Government proposed for increasing the foreign equity stake to 49%, this is yet to be effected. There are currently fourteen non-life insurance companies, out of which two are specialized Insurance companies viz. Agricultural Insurance Co, who handles Crop Insurance business and Export Credit Guarantee Corporation which only transacts export Credit Insurance. There are a total of 13 life insurance companies operating in India, of which one is a Public Sector Undertaking and the balance 12 are Private Sector Enterprises. Fifth largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. Insurance is a federal subject in India. There are two legislations that govern the sector- The Insurance Act- 1938 and the IRDA Act- 1999. The insurance sector in India has come a full 13 circle from being an open competitive market to nationalisation and back to a liberalised market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. Insurance Sector Reforms In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its future direction.The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognising that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included: i) Structure Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate. ii) Competition Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state. iii) Regulatory Body The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance- a part of the Finance Ministry- should be made independent iv) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time) v) Customer Service LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerisation of operations and updating of technology to be carried out in the insurance industry. The committee emphasised that in order to improve the customer services and increase the coverage of insurance policies, industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players 14 could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body- The Insurance Regulatory and Development Authority. Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products. RESENT SCENARIO: The Government of India liberalised the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity cap for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001. Non-Life Insurance Market: In December 2000, the GIC subsidiaries were restructured as independent insurance companies. At the same time, GIC was converted into a national re-insurer. In July 2002, Parliamant passed a bill, delinking the four subsidiaries from GIC. Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers. Although the public sector companies still dominate the general insurance business, the private players are slowly gaining a foothold. According to estimates, private insurance companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half of 15 2002, the private companies booked premiums worth Rs 6.34 billion. Most of the new entrants reported losses in the first year of their operation in 2001. With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project implementaion, including geological risks, maintenance, commercial and political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non- recourse basis. Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long term debt and equity for infrastructure projects. With long term liability, they get a good asset- liability match by investing their funds in such projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International Insurance companies also invest their funds in such projects. Insurance costs constitute roughly around 1.2- 2 percent of the total project costs. Under the existing norms, insurance premium payments are treated as part of the fixed costs. Consequently they are treated as pass-through costs for tariff calculations. Premium rates of most general insurance policies come under the purview of the government appointed Tariff Advisory Commitee. For Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets the premium rates, for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the committee's guidelines; and projects above Rs 15 billion are subjected to re-insurance pricing. It is the last segment that has a number of additional products and competitive pricing. Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the premium. The other companies share the remaining risk and premium. The policies are renewed usually on an annual basis through the invitation of bids. Of late, with IPP projects fizzling out, the insurance companies are turning once again to old hands such as NTPC, NHPC and BSES for business. Re-insurance business: Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which can be safely borne from their own funds. The balance risk is re-insured with other insurers. In 16 effect, therefore, re-insurance is insurer's insurance. It forms the backbone of the insurance business. It helps to provide a better spread of risk in the international market, allows primary insurers to accept risks beyond their capacity, settle accumulated losses arising from catastrophic events and still maintain their financial stability. While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer. Currently, all insurance companies have to give 20 per cent of their reinsurance business to GIC. The aim is to ensure that GIC's role as the national reinsurer remains unhindered. However, GIC reinsures the amount further with international companies such as Swissre (Switzerland), Munichre (Germany), and Royale (UK). Reinsurance premiums have seen an exorbitant increase in recent years, following the rise in threat perceptions globally. Life Insurance Market: The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unit- linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatisation was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average. 17 Buoyed by their quicker than expected success, nearly all private insurers are fast- forwarding the second phase of their expansion plans. No doubt the aggressive stance of private insurers is already paying rich dividends. But a rejuvenated LIC is also trying to fight back to woo new customers. MALHOTRA COMMITTEE : In 1993, the first step towards insurance sector reforms was initiated with the formation of Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra. The committee was formed to evaluate the Indian insurance industry and recommend its future direction with the objective of complementing the reforms initiated in the financial sector. Key Recommendations of Malhotra Committee: Structure • Government stake in the insurance Companies to be brought down to 50%. • Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. • All the insurance companies should be given greater freedom to operate. Competition • Private Companies with a minimum paid up capital of Rs.1billion should be allowed to enter the industry. • No Company should deal in both Life and General Insurance through a single Entity. • Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. • Postal Life Insurance should be allowed to operate in the rural market. • Only one State Level Life Insurance Company should be allowed to operate in each state. Regulatory Body • The Insurance Act should be changed. • An Insurance Regulatory body should be set up. 18 • Controller of Insurance should be made independent. Investments • Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. • GIC and its subsidiaries are not to hold more than 5% in any company. Customer Service • LIC should pay interest on delays in payments beyond 30 days • Insurance companies must be encouraged to set up unit linked pension plans. • Computerisation of operations and updating of technology to be carried out in the insurance industry. Malhotra Committee also proposed setting up an independent regulatory body - The Insurance Regulatory and Development Authority (IRDA) to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. The Insurance Act, 1938: The Insurance Act, 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business. You can download the act by clicking here Life Insurance Corporation Act, 1956: Even though the first legislation was enacted in 1938, it was only in 19 January 1956, that life insurance in India was completely nationalized, through a Government ordinance; the Life Insurance Corporation Act, 1956 effective from 1.9.1956 was enacted in the same year to, inter- alias, form LIFE INSURANCE CORPORATION after nationalization of the 245 companies into one entity. There were 245 insurance companies of both Indian and foreign origin in 1956. Nationalization was accomplished by the govt. acquisition of the management of the companies. The Life Insurance Corporation of India was created on 1st September, 1956, as a result and has grown to be the largest insurance company in India as of 2006. General Insurance Business (Nationalization) Act, 1972: 19 The General Insurance Business (Nationalization) Act, 1972 was enacted to nationalize the 100 odd general insurance companies and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance, United India Insurance which were headquartered in each of the four metropolitan cities. Insurance Regulatory and Development Authority (IRDA) Act, 1999: Till 1999, there were not any private insurance companies in Indian insurance sector. The Govt. of India then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies into the insurance. Further, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies. In recent years many private players entered in the Insurance sector of India. Companies with equal strength competing in the Indian insurance market. Currently, in India only 2 million people (0.2 % of total population of 1 billion), are covered under Mediclaim, whereas in developed nations like USA about 75 % of the total population are covered under some insurance scheme. With more and more private players in the sector this scenario may change at a rapid pace. Life Insurance Companies at a Glance: a) LIFE INSURANCE CORPORATION OF INDIA: On January 19, 1956 the President of the Indian Union issued an ordinance, providing for the taking over, in public interest, of the management of life insurance pending nationalization of such business, & the then Finance Minister explained the objectives of nationalization of life insurance business. In June 1956, the parliament passed a bill for nationalization of life insurance business in India and for setting up a corporation as the sole agency for carrying on this business in India. The corporation, set up under this Act, is known as “Life Insurance Corporation of India”, which started functioning on September 1, 1956. For the purpose of servicing of policies issued before September 1, 1956, some integrated head offices & integrated branch office units were created. These offices have nothing to do with the policies issued by the corporation. Corporation also took over foreign life business of the Indian insurers. Objectives of LIC: 20 Maximize mobilization of people’s savings by making insurance – linked savings adequately attractive. Conduct business with utmost economy & with the full realization that the moneys belong to the policyholders. To publicize & extent the insurance business specifically in rural & remote areas. To provide suitable financial security at reasonable cost. To make the investments more dynamic by popularizing the savings plans attached with insurance. To invest the insurance fund keeping with maximum benefit & interest of insured’s. To run the insurance business at minimum administrative costs. To function as trusts of the insured’s. To fulfill the needs of the society in a changing social and economic environment. To make the employees collectively responsible for providing efficient services to the insured’s. To develop work satisfaction among agents & employees. b) HDFC STANDARD LIFE INSURANCE COMPANY: HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC, India’s largest housing finance institution and Standard Life Assurance Company, Europe’s largest mutual life company. HDFC manages Rs. 21,450 Crores in assets and Standard Life manages over US $100 billion in assets. Both the promoters are well known for their ethical dealings, their financial strength and their commitment to be a long-term player in the life insurance industry. c) MAX NEW YORK LIFE INSURANCE COMPANY: Max New York Life Insurance Company is a joint venture between New York Life International Inc. and Max India Limited. New York Life, a Fortune 100 Company, is one of the world’s experts in life insurance with over 156 years of experience in the business and over US$ 165 billion (Rs. 775,000 Crores) in assets under management. Max India Limited is a multi-business corporate, focused on the knowledge, people, and service-oriented business of life insurance, healthcare and information technology. d) ICICI PRUDENTIAL LIFE INSURANCE COMPANY : 21 ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). e) OM KOTAK MAHINDRA LIFE INSURANCE : Om Kotak Mahindra Life Insurance, a company under Kotak Mahindra Group is a 74:26 life insurance joint venture between Kotak Mahindra Finance Limited with Old Mutual, U.K. The philosophy of Om Kotak Mahindra is helping their customers take financial decisions at every stage in life. Their aim is to consistentl y offer a wide range of innovative life insurance products, to help their customers remain financiall y independent, which is why they believe that freedom to take life on "Jeene Ki Aazadi" The alliance of Om Kotak Mahindra with Old Mut ual has given it unmatched expertise in life insurance area. With 156 years of experience in life insurance business, Old Mutual is today an International Financial Service Group based in London. f) BIRLA SUN LIFE INSURANCE COMPANY: It is a joint venture of Adit ya Birla Group and Sun Life Financial Services with the objective that Insurance is not about something going wrong. It's often about things going right. One of the wonders of human nature is that we never believe anything can actuall y go wrong. Surel y, life has its share of ifs. At Birla Sun Life however, we believe it has its equally pleasant share of buts as well. We at Birla Sun Life stand committed to helping you realize those happy moments, which make a life. Be it living the same lifest yle in your post retirement days or providing a secure future for your loved ones, in case something happens to you. g) TATA AIG LIFE INSURANCE COMPANY : 22 Tata AIG is a joint venture that is backed by the Tata Group – India’s most respected industrial conglomerate, with revenues of more than US $8.4 billion, and American International Group, Inc. (AIG) – the leading US-based international insurance and financial services organization, with a presence in over 130 countries and jurisdictions th roughout the world. Tata AIG offers a gamut of innovative products in the Life Insurance sector. h) SBI LIFE INSURANCE COMPANY : SBI Life Insurance Company Ltd. is a joint venture between State Bank of India and Cardiff of France. SBI is the largest bank in India and Cardiff is a leading insurance company in France operating in 29 countries. Cardiff is a wholly owned subsidiary of BNP Paribas, the largest European Bank. COMPANY PROFILE INTRODUCTION TO COMPANY ICICI GROUP: 23 ICICI Bank is India’s second-largest bank with total assets of about Rs.112.024 crore and a network of about 450 branches and offices and about 1750 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customer through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital, asset management and information technology. ICICI Bank’s equity shares are listed in India on stock exchanges at Chennai. Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly owned subsidiary. ICICI’s shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank’s acquisition of Bank of Mathura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium term and long term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of 24 subsidiaries and affiliates like ICICI Bank, In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the management of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group’s universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity’s access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payment system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI’s strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, Particularly fee-based services, and access to the vast talent pool of ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, With ICICI Bank. Shareholders of ICICI and ICICI BANK approved the merger in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group’s financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank is the only Indian company to be rated above the country rating by the international rating agency moody “s and the only Indian company to be awarded an investment grade international credit rating. The Bank enjoys the highest AAA (or equivalent) rating from all Leading Indian rating agencies. PRUDENTIAL PLC: Established in 1848, 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 25 was acquired by Prudential in 1999 and is the Group’s UK and European fund manager, responsible for managing over of 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. 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 millions policies and contracts in force. 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. Prudential plc’s strong mix of business around the world positions us well to benefit form the growth in customer demand for asset accumulation and income in retirement. Our international reach and diversity of earnings by geographic region and product will continue to give us significant advantage. Our commitment to the shareholders who own Prudential is to maximize the value over time of their investment. We do this by investing for the long term to develop and bring out the best in our people and our businesses to produce superior products and services, our international peer group in terms of total shareholder returns. At Prudential our aim is lasting relationships with our customers and policyholders, through products and services that offer value for money and security. We also seek to enhance our Company’s reputation, built over 150 years, for integrity and for acting responsibly within society. ICICI Prudential Life Insurance: ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential Plc, a leading international financial 26 services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from insurance Regulatory Development Authority (IRDA). ICICI Prudential’ s equity base stands at Rs.6.75 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. Today, our nation-wide reach includes 1,960 branches (inclusive of 1,096 micro-offices), over 237,000 advisors; and 6 banc assurance partners. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India. EDGE: The ICICI Prudential edge comes from our commitment to our customers, in all that we do - be it product development, distribution, the sales process or servicing. Here's a peek into what makes us leaders. 1. Our products have been developed after a clear and thorough understanding of customers' needs. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the funds you might need to recover from a dreaded disease. 2. Having the right products is the first step, but it's equally important to ensure that our customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products . 3. Robust risk management and underwriting practices form the core of our business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process. 4. Entrusted with helping our customers meet their long-term goals, we adopt an investment philosophy that aims to achieve risk adjusted returns over the long- term. 5. Last but definitely not the least, our team is given the opportunity to learn and grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life. 27 Vision & Values: To be the dominant Life, Health and Pensions player built on trust by world-class people and service This we hope to achieve by: (a) Understanding the needs of customers and offering them superior products and service. (b) Leveraging technology to service customers quickly, efficiently and conveniently (c) Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders (d) Providing an enabling environment to foster growth and learning for our employees (e) And above all, building transparency in all our dealings The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe what the company stands for, the qualities of our people and the way we work. 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. Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundaryless, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success. MANAGEMENT: 28 The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Chairperson: Ms. Chanda D. Kochhar Director: Mr. N. S. Kannan Director: Mr. K. Ramkumar Director: Mr. Barry Stowe Director: Mr. Adrian O’Connor Independent Director: Mr. Keki Dadiseth Independent Director: Prof. Marti G. Subrahmanyam Independent Director: Ms. Rama Bijapurkar Independent Direct: Mr. Vinod Kumar Dhall Managing Director & CEO: Mr. V. Vaidyanathan Company Name & Address: 29 Name: ICICI PRUDENTIAL LIFE INSURANCE Address: Head Office: ICICI Prudential Life Insurance 1st Floor, Appasaheb Marathe Marg, Prabhadevi, MUMBAI – 400013 Branch Office: ICICI Prudential Life Insurance Krishna Palace , 3rd floor, Tejgarhi, Garh Road, Meerut, Uttar Pradesh, Pin-250005 ICICI Prudential’s Product: 30 ICICI Prudential has a wide array of Insurance Plans that have been designed with the philosophy that different individuals are bound to have differing insurance needs. The ideal insurance plan is one that addresses the exact insurance needs of the individual that will depend on the age and life stage of the individual apart from a host of other factors. Life Insurance Plans: Under Life insurance plans, ICICI Prudential offers plans under the following major need categories: Education Insurance Plans: One of your most important responsibilities as a parent is to ensure that your child gets the best possible education that can be provided. ICICI Prudential offers a wide portfolio of education insurance plans that are designed to provide peace of mind to you, as a parent, that your child's education will be secure. These plans ensure that money is made available at the crucial junctures in a child's education - Class X, Class XII, graduation and post-graduation - to fund crucial commitments for the child's future. Importantly, education insurance plans ensure that in the unfortunate event of the death of a parent, the child's education continues unhampered. Under the education insurance plans platform, ICICI Prudential brings the following products to you. Plan Name Plan Type Unit Linked ICICI Pru SmartKid Assure Unit Linked ICICI Pru SmartKid Maxima Traditional ICICI Pru SmartKid Regular Premium ICICI Prudential Smart kid Assure: As a loving and caring parent, you would like to ensure that your children get the best of opportunities to realise their dreams. However, providing these opportunities to your children comes at a cost and you have to save wisely so that these costs are met, even in your absence. Presenting ICICI Pru SmartKid Assure, an ideal insurance cum savings product which allocates your assets based on your chosen portfolio strategy and whose benefits continue 31 even if you are not around to take care of your child. Start investing today to ensure that your children’s dreams turn into reality. Minumum Premium Rs. 15,000 per annum Modes of premium payment Yearly/Half Yearly/Monthly 5 times Annual Premium, subject to minimum Minimum Sum Assured of Rs. 1,00,000 Maximum Sum Assured As per the maximum sum assured multiples Minimum/Maximum age at 20/60 years entry(Parent) Minimum/Maximum age at 0/15 years entry(Child) Maximum age at maturity(Parent) 75 years Minimum/Maximum age at 18/30 years maturity (Child) Minimum/Maximum Policy term 15/25 years ICICI Pru SmartKid Assure : UIN 105L106V01 Features And Benefits: Complete protection: Lump sum payment of Sum Assured plus payment of future premiums by the Company in the unfortunate event of death of the parent (Life Assured) Guaranteed Addition (GA): 120% to 170% of annual premium allocated to your Fund Value at the end of the 15th Policy year* LifeCycle based Portfolio Strategy: A unique and personalized strategy to create an ideal balance between equity and debt, based on your age Additional allocation of units: More than 100% allocation to funds on premium payment, from the 6th Policy year onwards Partial withdrawals: Facility to provide money at key educational milestones for your child. 32 ICICI Prudential Smart kid Maxima: As parents, we want to provide the best that we can offer for our children and this includes planning for the best possible education. With the rising cost of education, you need a savings plan that is designed to provide adequate money at key educational milestones and take care of your loved ones even if you are not around. With this objective in mind, ICICI Prudential Life Insurance now presents ICICI Pru SmartKid Maxima. With this product, you can safeguard your child’s education and ensure that your loved ones stay financially secure in your absence. Additionally this product also offers you a unique strategy that allows you to protect gains made through your funds invested in the equity market from any future equity market volatility. Minimum Premium Rs. 12,000 p.a. for yearly mode Rs. 15,000 p.a. for half yearly & monthly mode Modes of Premium Payment Yearly/ Half yearly/ Monthly 5 X Annual Premium, subject to a minimum of Minimum Sum Assured Rs. 1,00,000 As per the maximum Sum Assured multiples, Maximum Sum Assured subject to a minimum of Rs. 1,00,000 Minimum/ Maximum age at 20 / 60 years entry (Parent) Maximum age at maturity 75 years (Parent) Minimum/ Maximum age at 0 / 15 years entry (Child) Minimum/Maximum age at 18 / 30 years maturity (Child) Policy Term 10 / 15 / 20 / 25 years ICICI Pru SmartKid Maxima : UIN 105L104V01 33 Features and benefits: Complete protection: Lump sum payment of Sum Assured plus payment of future premiums by the Company in the unfortunate event of death of the parent (Life Assured) Trigger Portfolio Strategy: A unique portfolio strategy to protect gains made in equity markets from any future equity market volatility. Guaranteed Additions: Additions of 60% of annual premium accrue to your Fund Value every five years, starting from the end of 10th Policy year, on payment of all due premiums. Partial withdrawals: Facility to provide money at key educational milestones of your child. ICICI Prudential Smart kid Regular Premium: ICICI Prudential's SmartKid is a fixed-term insurance plan that provides you with funds at regular intervals. The plan also keeps your family financially secure should an untoward event ever occur. Read more about the features and benefits of SmartKid. Features and benefits: SmartKid New Unit-linked Regular Premium, SmartKid New Unit-linked Single Premium and SmartKid Regular Premium. Take a look at the features and benefits of each plan: 1. SmartKid New Unit-linked Regular Premium UIN 105L058V01 SmartKid New Unit-linked Regular Premium is a unit-linked plan, which enables you and your child to accumulate wealth by virtue of the performance of the underlying market-linked instrument. Take a look at the features of the plan: Premium: The minimum premium to be invested is Rs. 10,000 per annum. After deducting premium allocation charges from the premium, the remaining amount will be invested in a fund of your choice. Sum Assured: The minimum Sum Assured is 5 times of Annual Premium, subject to a minimum of Rs 1 Lac Policy term: The term of the policy will be calculated as the difference between your child's current age and the age of your child when the policy matures. Mortality, Policy Administration charges: These and other charges will be deducted from the units in the fund. 34 2. SmartKid New Unit-linked Single Premium UIN 105L059V01 SmartKid New Unit-linked Single Premium works in much the same way as SmartKid New Unit-linked Regular Premium policy mentioned above. The only different feature is the premium amount-you will be required to pay only a single premium, which starts at as low as Rs. 50,000. Additional Features and Benefits Common to All 3 Plans Regular payouts: As your child approaches key educational milestones such as 12th standard or graduation exams, he or she will receive regular payouts, guaranteeing he or she continues to study, no matter what the circumstance. Death Benefit: Your child will receive the Sum Assured immediately, should something happen to you. ICICI Prudential will pay the remaining premiums, ensuring your child continues to receive policy benefits, as always. Income Benefit Rider: You can choose to add the benefits of this rider to your child's education plan. Should you depart before your son's or daughter's education is complete, you child will receive 10% of Rider Sum Assured, for the balance term of the policy. Add-on riders: 'Accidental Death and Disability Rider' and 'Waiver of Premium Rider' ensure your child stays doubly protected, at all times. You can choose to add these to your child's education policy. Tax benefits: Premiums you pay for a SmartKid policy are eligible for tax savings [u/s 80(C)]. Maturity and death benefits are eligible for tax exemptions [u/s 10(10D)]. 3. SmartKid Regular Premium UIN 105N014V02 Flexible investment option: Choose the amount of premium with which you wish to safeguard your child's education. Flexible policy tenure: The tenure of the plan will be calculated as the difference between your child's current age and his or her age at which the policy matures. Flexible premium options: The premium will be calculated based on 3 factors: Sum Assured, policy tenure and your age. 35 Guaranteed bonus: A guaranteed bonus of 3.5% per annum is declared for the first 4 premium paying years plus an annual vested bonus declared in subsequent years. Wealth Creation Plans: Wealth Creation Plans give the customer the dual benefit of protection along with the potentially higher returns of market-linked instruments. The most important benefit of ULIPs is the flexibility they give the customer in choosing the premium amount and also choosing the underlying fund in which this money is to be invested. Wealth creation plans also offer the customer more liquidity options as compared to traditional plans. As such, ULIPs are ideal for customers who want the protection of a life cover to be allied to the returns of market linked instrument – giving them an unmatched combination of benefits. Under the wealth creation platform, ICICI Prudential brings the following products to you. Plan Name Plan Type ICICI Pru ACE Unit Linked ICICI Pru Premier Wealth Unit Linked ICICI Pru Assure Wealth Unit Linked ICICI Pru LifeTime Maxima Unit Linked ICICI Pru Pinnacle Unit Linked ICICI Pru ACE: You have always wanted the best in life. Just like you, your investments also deserve the very best. Similarly, your financial planning needs the best that money can buy. Importantly, you need a plan that helps you achieve your dreams and also protect them in adverse conditions. Keeping this in mind, ICICI Prudential brings you ICICI Pru Ace, a savings plan which offers you the best value for your hard earned savings. Minimum Premium Rs. 18,000 p.a Modes of Payment Yearly / Half Yearly / Monthly Minimum Sum Assured 5 times Annual premium subject to min of Rs. 100,000 Maximum Sum Assured As permaximum sum assured multiples Min / Max age at entry 0 / 65 yrs 36 Min / Max age at maturity 18 / 75 years Policy Term 10 - 30 years ICICI Pru ACE : UIN 105L105V01 Features: Trigger Portfolio Strategy: Option to choose a unique portfolio strategy to protect gains made in equity markets from any future equity market volatility 100% allocation: At premium payment, in the asset class of your choice Loyalty Additions: At the end of every five policy years, starting from the 10th policy year, on payment of all premiums Additional allocation of units: More than 100% allocation to funds on premium payment from the sixth policy year to the end of the policy term Automatic Transfer Strategy: An option that helps you eliminate the need to time your investment ICICI Pru Premier Wealth: Just like you your investments also deserve the best. It should not only give you higher returns but also protection and that too at a minimal cost. Keeping this in mind, ICICI Prudential brings you ICICI Pru Premier Wealth. This policy offers you a unique investment strategy that allows you to protect gains made through your funds invested in the equity markets from any future equity market volatility. In addition, it also provides an insurance cover. So, realize your dreams without compromising your family’s protection Minimum Premium Rs. 18,000 per annum Modes of Premium Payment Yearly/ Half yearly/ Monthly 5 X Annual Premium, subject to a minimum of Minimum Sum Assured Rs. 100,000 Maximum Sum Assured As per the maximum sum assured multiples Minimum/ Maximum age at 0 / 65 years entry Minimum/ Maximum age at 18 / 75 years maturity Policy Term 10 / 15 / 20 / 25 / 30 years Tax Benefits Premium and any benefit amount received under 37 this policy will be eligible for the tax benefit as per the prevailing Income Tax laws ICICI Pru Premier Wealth : UIN 105L097V01 Features and benefits: Investment option: The product will offer the customer multiple investment options, to provide more freedom in terms of how he/she wants his/her money to be invested. The product will be available with 2 portfolio strategies 1. Trigger Portfolio Strategy 2. Fixed Portfolio Strategy Additional allocation: Additional allocation of units from 6th year onwards that will result in more than 100% allocation to funds on premium payment. Loyalty Bonus: At the end of every five policy years, starting from the 10th policy year, paid irrespective of the premium payment status. Partial Withdrawals: 1 partial withdrawal allowed every 3 years starting from the 6h policy year. Death benefit: Sum Assured or Fund Value, whichever is higher. Maturity benefit: Fund value. Alternatively, settlement options can be chosen ICICI Pru Assure Wealth: You want your investments to work as hard as you do in order to help you achieve your goals. You also want to be rewarded with life long benefits so that you have the peace of mind you always desired. Presenting ICICI Pru Assure Wealth, a whole life insurance and savings product, that rewards you with a guaranteed addition and also provides you an insurance cover so that your loved ones are taken care of in your absence. Minimum Premium Rs. 12,000 per annum Modes of Premium Payment Yearly/Half yearly/Monthly 5 X Annual Premium, subject to a minimum of Minimum Sum Assured Rs.1,00,000 Maximum Sum Assured As per the maximum Sum Assured multiples 38 Minimum/Maximum Age at 0/55 years Entry Policy Term Whole Life ICICI Pru Assure Wealth : UIN 105L98V01 Features and benefits: Guaranteed Addition (GA): A Guaranteed addition varying from 120% to 180% of one annual premium is added to your Fund Value at the end of the 15th Policy year*. Whole Life: Enjoy the benefits of staying invested throughout your life. LifeCycle based Portfolio Strategy: A unique and personalized strategy to create an ideal balance between equity and debt, based on your age. Choice of variants: You can choose between two product variants: 1. Assure Wealth Super 2. Assure Wealth Plus Partial withdrawals: Facility to withdraw money for your liquidity needs ICICI Pru LifeTime Maxima: Money saved is money earned. Whenever the value of your investment rises, you would like to ensure that the gains you have made are safeguarded. Keeping this in mind, ICICI Prudential brings you ICICI Pru LifeTime Maxima. This policy offers you a unique strategy that allows you to protect gains made through your funds invested in the equity markets from any future equity market volatility. In addition, it also provides an insurance cover. So, realize your dreams without compromising your family’s protection. Minimum/Maximum 0/65 years Entry Age Maximum Maturity Age 18/75 years Policy term 10/15/20/25/30 years Minimum/ Maximum 5 X Annual premium / As per the SA multiple matrix Sum Assured 39 Premium Payment Monthly, half-yearly, yearly Frequency Minimum Premium Rs.24,000 per annum Premium and any benefit amount received under this Tax Benefit policy will be eligible for the tax benefit as per the prevailing Income Tax laws. ICICI Pru LifeTime Maxima : UIN 105L096V01 Features and benefits: Investment option: The product will offer the customer multiple investment options, to provide more freedom in terms of how he/she wants his/her money to be invested. The product will be available with 2 portfolio strategies • Trigger Portfolio Strategy • Fixed Portfolio Strategy Additional allocation: Additional allocation of units from 6th year onwards that will result in more than 100% allocation to funds on premium payment. Partial Withdrawals: 1 partial withdrawal allowed every 3 years starting from the 6h policy year. Death benefit: Higher of Sum Assured and Fund Value Maturity benefit: Fund value. Alternatively, settlement options can be chosen ICICI Pru Pinnacle: ICICI Pru Pinnacle is a unit linked insurance policy that offers the advantage of varying exposure to equities along with downside protection, so that your investments are protected in financially volatile times. It also offers a limited premium payment term while allowing you to enjoy insurance protection for a longer period. Guaranteed NAV With ICICI Pru Pinnacle, we guarantee the highest Net Asset Value (NAV) recorded on a daily basis, in the first 7 years of the fund, subject to a minimum of Rs.10. The guarantee will be applicable only at maturity. The period of 7 years starts from the date 40 of launch of Pinnacle Fund and will end on the completion of 7 years (from 24/10/09 to 24/10/16). At maturity, the higher of Fund Value (Units X NAV) and Guaranteed Value (Units X Guaranteed NAV) as on the maturity date shall be payable. Scenario 1 Scenario 2 Number of Units at maturity 50,000 50,000 (A) Guaranteed NAV Rs.20 Rs.20 (B) NAV on maturity date Rs.15 Rs.25 (C) Guaranteed Value Rs 10.0 lacs Rs 10.0 lacs (A x B) Fund Value Rs 7.5 lacs Rs.12.5 lacs (A x C) Higher of (Guaranteed Value, Fund Value) Rs. 10.0 lacs Rs. 12.5 lacs Not only this, ICICI Pru Pinnacle gives a boost of additional allocation amounting to 3% of Fund Value on the day of maturity (Guaranteed NAV will not be applicable to additional allocation). Premium Payment Term 3 years Minimum Premium Rs.50,000 per annum Modes of Premium Half yearly/Yearly Payment Minimum/Maximum 8/ 65 years Entry Age Policy Term 10 years Maximum Maturity Age 75 years Minimum Sum Assured 5 x Annual Premium Premium and any benefit amount received under this Tax Benefit policy will be eligible for the tax benefit as per the prevailing Income Tax laws. ICICI Pru Pinnacle: UIN 105L095V01 41 Features and benefits: Guaranteed NAV: get the benefit of the highest NAV recorded on a daily basis, in the first 7 years of the fund, at maturity. Limited premium payment term: pay premiums for only 3 policy years. Additional allocation: added to your fund at maturity Death benefit: in the unfortunate event of death, the nominee receives higher of Sum Assured (reduced by partial withdrawals) and Fund Value. Partial withdrawals: ensures liquidity from the 6th policy year onwards Tax benefits: avail tax benefits on the premiums paid and benefits received under the policy, as per the prevailing Income Tax laws. Protection Plans: The sole objective of these plans, as their name indicates, is to serve the protection needs of the customer and by doing so, safeguard one’s family from the financial implications of unfortunate circumstances than one cannot foresee. Under the Protection Plans platform, ICICI Prudential brings to you the following products: ICICI Pru Pure Protect: As the head of your family, you have always fulfilled your responsibilities and given your family the comforts they wanted. You have always been there for them. However, life is full of uncertainties. So, it is important to ensure that your family is protected, should something unfortunate happen to you. Keeping this in mind, we bring to you, ICICI Pure Protect, with which you can insure your life and provide total security to your family, at a very affordable cost. ICICI Pru Pure Protect is a term plan (Without Return of Premium) which will be available in two variants: 1. ICICI Pru Pure Protect Classic: For Sum Assured of up to Rs. 25,00,000 2. ICICI Pru Pure Protect Elite: For Sum Assured of Rs. 25,00,000 and above Invest in the plan that best suits your protection needs and guarantees lifelong comfort and security to your family. 42 Safeguard your family from financial insecurity with the shield of ICICI Pru Pure Protect at very affordable rates. Features Pure Protect Classic Pure Protect Elite Minimum Annual Rs. 2400 p.a. ( with service tax ) Premium Minimum / Maximum 18 - 65 years Entry Age Maximum Age 75 years at Maturity Term 10 - 30 years Minimum Sum - Rs. 25,00,000 Assured Maximum Sum Up to Rs. 25,00,000 Assured Premium Payment Yearly, Half Yearly, Monthly Frequency Premium paid for the policy will be eligible for tax benefit under section 80C, any benefit amount received under this policy will be Tax Benefit eligible for the tax benefit under section 10 (10D), as per prevailing Income Tax laws Features and Benefits: Death benefit: Provide for your beneficiary to receive the Sum Assured should something happen to you. Maturity benefit: There are no maturity benefits available under this plan. Tax benefits: Receive tax deductions on premiums paid (u/s 80 C). Enjoy tax exemptions on death benefits [u/s 10 (10 D)] as per prevailing Income Tax laws. Additional Benefits For added protection of your family against any unfortunate eventualities, we offer you the following benefits at a nominal extra cost. Accidental Death and Disability Benefit Rider: • On death of the life assured due to an accident, the beneficiary gets the additional Sum Assured under the Rider. 43 • In case of death due to accident while the life assured is using, as a fare paying passenger, authorized public mass surface transport, namely bus or train, operating under terms of such authorization the beneficiary gets twice the Sum Assured under the rider. • In the event of total and permanent disability, 10% of the Rider Sum Assured is paid out every year, for 10 years. Waiver of Premium Rider: • In case of total and permanent disability due to an accident, under this rider the company will pay the remaining premiums till maturity. LifeGuard: Protect your family with ICICI Prudential's LifeGuard. LifeGuard acts as a shield that safeguards your loved ones from financial insecurity, at all times. A cost-effective plan, LifeGuard comes in two variants: LifeGuard with Return of Premium (life cover with maturity benefit), and LifeGuard Single Premium (premium at policy inception, cover till policy matures). Invest in a plan that best suits your requirements and guarantee your family lifelong comfort and security. Protect your family with ICICI Prudential's LifeGuard. LifeGuard acts as a shield that safeguards your loved ones from financial insecurity, at all times. A cost-effective plan, LifeGuard comes in two variants: LifeGuard with Return of Premium (life cover with maturity benefit), and LifeGuard Single Premium (premium at policy inception, cover till policy matures). Invest in a plan that best suits your requirements and guarantee your family lifelong comfort and security. Minimum Sum Premium* Plan Policy Term Assured Installments Between 10 & LifeGuard 30 years Monthly, half-yearly with Return of Rs 5 Lakhs or annually Premium Between 3 & LifeGuard Single Rs 2.5 Lakhs 15 years Single Premium plan Premium Features and Benefits: LifeGuard offers a choice of 2 life insurance plans: LifeGuard with Return of Premium and LifeGuard Single Premium. Take a look at the features and benefits of the plans: 44 Death benefit: Provide for your beneficiary to receive the Sum Assured should something happen to you. Extended life cover: Invest in LifeGuard with Return of Premium plan and safeguard your family with an additional cover—at 50% of the original Sum Assured—for 5 years after your policy terminates. Additional riders: Protect your family from accidents and disability by adding on the Accident and Disability Benefit Rider (ADBR) and the Waiver of Premium Rider (WOPR). ADBR: The rider benefit amount will be paid to your family in the event of death or disability due to an accident. WOPR: In the case of total and permanent disability due to an accident, all further premiums will be waived and policy benefits will continue. Tax benefits: Receive tax deductions on premiums paid (u/s 80 C). Enjoy tax exemptions on maturity proceeds and death benefits [u/s 10 (10 D)] as per prevailing Income Tax laws. Maturity benefit: Invest in LifeGuard with Return of Premium plan and receive all the premiums you have paid, when your policy matures. Save'n'Protect: Assure your loved ones stay secure, even when you are unable to hold up the protective umbrella yourself. Invest in ICICI Prudential's Save'n'Protect life insurance scheme, and in addition to safeguarding your family, Save'N'Protect will enable you to make regular, systematic savings, so you can effortlessly provide your family with every comfort and meet your long-term financial objectives. Minimum Rs 50,000 Sum Assured Minimum 10 years Term Maximum 30 years Policy Term Minimum 0 Entry Age Maximum 60 years Entry Age Maximum 70 years Age at 45 maturity Minimum Rs 6000 p.a. Premium Premium paid for the policy and critical illness benefit rider will be Tax Benefit eligible for tax benefit under section 80C & 80D respectively, any benefit amount received under this policy will be eligible for the tax benefit under section 10 (10D), as per prevailing Income Tax laws. Features and benefits: When you invest in Save’N’Protect, you give yourself the guarantee of safeguarding your family’s well being in addition to savings towards some important goals. Take a look at the features and benefits of this plan: Sum Assured: Choose your Sum Assured depending on the level of cover with which you want to protect your family. The minimum Sum Assured is Rs. 50,000. 3 premium paying modes: Choose to pay your premium in monthly, bi-annual or annual installments. Your premium is determined based on your age and the Sum Assured you choose. Death benefit: Your nominee will immediately receive the Sum Assured and accrued guaranteed and vested bonuses, should something happen to you. Maturity benefit: Receive guaranteed and vested bonuses plus the Sum Assured when your policy matures. Extended life cover: Opt to protect your family even after you have stopped paying the premium. Enjoy an extended cover for 5 years, at 50% of the Sum Assured, after your policy matures. Additional riders: Keep your family financially secure even in the event of a critical illness, accident and disability. Invest in Critical Illness Rider (CIR), Accident and Disability Benefit Rider (ADBR) and Accident Benefit Rider (ABR). Tax benefits: Enjoy tax deductions on your premiums (u/s 80 C) and tax exemptions on maturity proceeds and death benefit [u/s 10 (10 D)] as per prevailing Income Tax laws. 46 CashBak: ICICI Prudential's CashBak is a fixed-term insurance plan that provides you with funds at regular intervals. The plan also keeps your family financially secure should an untoward event ever occur. Minimum/Maximum Entry Age 16 years and 55 years Minimum Sum Assured Rs. 75000 Liquidity years for CashBak 15 3 rd , 6 th , 9 th and 12 th year years Liquidity years for CashBak 20 4 th,8 th, 12 th and 16 th year years 50% of Sum Assured + Guaranteed Additions and Maturity Benefit Vested Bonuses Features and benefits: CashBak is a fixed-term insurance plan that you can invest in for either 15 or 20 years, depending on your financial goals and objectives. Take a look at the features and benefits of this plan Guaranteed additions: Receive additional sums at the rate of 3.5% compounded annually on the Sum Assured, for the first four years. Liquidity benefit: Receive a percentage of the basic Sum Assured at the end of year 3, 6, 9 and 12, if you choose a 15-year plan. If you choose a 20-year plan, receive payouts at the end of year 4, 8, 12 and 16. Death benefit: Should something happen to you, your nominee will receive the Sum Assured along with guaranteed additions for the first 4 years, along with vested bonuses, irrespective of the survival benefits already paid. Maturity benefit: Receive 50% of the Sum Assured along with guaranteed additions, for the first 4 years, and vested bonuses (if any). Tax benefits: Enjoy tax savings on your premiums (under u/s 80 C) and tax exemptions on your death and maturity benefits [under u/s 10 (10 D)]. Home Assure: Own your dream home, we will cover it! Owning your very own home is a cherished dream. We want to ensure that this dream comes true, irrespective of what the future holds. We are pleased to bring you Home Assure. This extremely affordable Term Life Insurance Plan offers you protection against 47 your loan amount with complete convinience in application. In case of an unfortunate event of death, the financial security of your family is not affected. The family need not direct their savings towards paying off the outstanding loan. ICICI Prudential will pay the outstanding amount to the bank directly. Your family will continue to retain the home purchased by your hard earned money. Age at entry 18 - 60 years Maximum Cover ceasing age 70 years Term of the plan 2 -22 years Minimum Sum Assured Rs.25,000 Maximum Sum Assured Equivalent to the loan amount Features and benefits: 1. All you have to do is pay a single premium to opt for the insurance cover and you will continue to remain covered throughout the insurance tenure i.e. the under-construction period (if applicable) + the original home loan tenure. 2. You will need to state in advance the expected under-construction period as 0,1, or 2 years. This will be added to the home loan term to compute the total insurance term. 3. You will be covered for the entire loan amount (santioned home loan + single premium paid). The premium is very affordable and there will be a minimal increase in the EMI due to the loan for the insurance premium 4. The insurance cover would start from the date of first disbursement of the home loan and ICICI Prudential shall accept risk from the date the premium is debited to the account of the life assured. 48 5. The insurance cover would be as per the original loan schedule. 6. On survival upto the end of term, no benefit will be payable. 7. Tax benefits: Premium paid for the policy and critical illness benefit rider will be eligible for tax benefit under Sec. 80C and 80D respectively. Any amount paid to you will be eligible for tax benefits under Sec. 10 (10D) as per prevailing Income Tax laws. Pension & Retirement Solutions The primary objective of a pension plan is to help you provide for your financial needs in your post retirement years. You will find a Pension Planning Calculator on the site, meant to make your pension plan review as simple as possible. The calculator is the first step in your Pension Plan scheme; there are other steps towards getting the Indian pension policy you need. ICICI Pru Lifetime Pension Maxima In the prime of your life and at the peak of your career, you enjoy all the comforts of life. A happy family, your own home and car, frequent dining out, holidays in India and abroad... these are pleasures you are used to today. Wouldn't you wish to continue enjoying them even after you stop working? You can, if you plan for it now. All you need is a good retirement plan. At ICICI Prudential Life Insurance, we understand your needs and help you plan for a better future. We bring to you ICICI Pru LifeTime Pension Maxima, a regular premium, unit-linked pension product. This product offers you the flexibility to invest in unit-linked funds that generate potentially higher returns over the long term. This product also offers you a unique strategy that allows you to protect gains made through your funds invested in the equity markets from any future equity market volatility. So, start investing today to realize your retirement dreams. Rs.10,000 p.a. for yearly mode Minimum Premium Rs.15,000 p.a. for half yearly & monthly mode Modes of Premium Payment Yearly / Half yearly / Monthly Minimum/Maximum Sum Assured 0/As per the sustainability matrix Minimum/Maximum Age at Entry 18 / 70 years Minimum/Maximum Age at 50 / 80 years Vesting Maximum cover ceasing age 80 years 49 10 to 60 years, allowed only in multiple of 5 Policy Term years ICICI Pru Lifetime Pension Maxiam : UIN 105L101V01 Features and benefits: Trigger Portfolio Strategy: A unique portfolio strategy to protect gains made in equity markets from any future equity market volatility while maintaining a pre-defined asset allocation Additional allocation of units: More than 100% allocation to funds on premium payment from the sixth policy year onwards Loyalty Addition: At the end of every five policy years, starting from the 10th policy year, paid irrespective of the premium payment status Flexibility to increase your investment by investing additional money over and above your regular premiums as top ups ATS: Eliminate the need to time your investment with the Automatic Transfer Strategy. Five pension options: Flexibility to choose a pension plan as per your needs. ICICI Pru LifeStage Pension Advantage: The word retirement brings to mind beautiful images of a comfortable and relaxed life. A life spent in the company of your loved ones and free of the worries and tensions of work. To ensure that this dream is realized, you need to build an adequate retirement corpus, which will allow you to be free from any financial worries. To help you achieve this goal, ICICI Prudential presents ICICI Pru LifeStage Pension Advantage. The distinguishing feature of this policy is that it has no premium allocation charge for any regular premiums, which means 100% of your money is invested at premium payment. This policy also provides you with a unique lifecycle-based investment strategy that continuously re-distributes your money across various asset classes based on your life stage and risk tolerance, eventually providing you with a customized retirement solution. So, start investing today to realize your retirement dreams. Rs. 15,000 per annum Minimum Premium Modes of Premium Payment Yearly/Half yearly/Monthly Minimum/Maximum Sum 0/As per the sustainability matrix 50 Assured Minimum/Maximum Age at Entry 18/70 years Minimum/Maximum Age at 50/80 years Vesting Maximum cover ceasing age 75/80 years Policy Term 10 to 60 years, in multiples of 5 years Premium and any benefit amount received under this Tax Benefits policy will be eligible for the tax benefit as per the prevailing Income Tax laws. ICICI Pru LifeStage Pension Advantage: UIN : 105L100V01 Features and benefits Investment option: The product will offer the customer multiple investment options, to provide more freedom in terms of choice of investment. The product will be available with 2 portfolio strategies 1. Lifecycle based Portfolio Strategy 2. Fixed Portfolio Strategy Additional allocation: Additional allocation of units from 6th year onwards that will result in more than 100% allocation to funds on premium payment. Partial Withdrawals: 1 partial withdrawal allowed every 3 years starting from the 6h policy year. Death benefit: Sum Assured or Fund Value, whichever is higher Five pension options: provide you the flexibility to choose a pension plan as per your needs. ICICI Pru Elite Pension II: For an exclusive customer like you, who likes to be in complete control, we present ICICI Pru Elite Pension II. It is a regular premium paying, unit-linked pension product that offers potentially higher returns over the long term. This product comes with the unique Trigger Portfolio Strategy which automatically protects your gains made in equity markets from any future 51 market volatility. And once you arrive at your retirement age, you are assured of regular income (pension) for life Minimum Premium Rs 3,00,000 p.a. Mode of Premium Payment Yearly and Half yearly Min / Max Age at Entry 18 / 74 years Min / Max Policy Term 6 / 62 years Min / Max Age at Vesting 50 / 80 years ICICI Pru Elite Pension II: 105L099V01UIN Features and benefits Loyalty Addition: A loyalty addition equal to 1.5% of Fund Value will be allocated at the end of every fifth policy year. These additions will be made only if 3 full years’ premiums are paid within the completion of first 3 policy years. Trigger Portfolio Strategy: A unique portfolio strategy to protect gains made in equity markets from any future equity market volatility while maintaining a pre-defined asset allocation. Fixed Portfolio Strategy: Choose from 8 investment funds to invest your money, based on your financial goals and risk profile. You can switch funds 4 times a year, at no cost. For subsequent switches you will be required to pay a switch fee of Rs. 100. Partial withdrawal benefit: To ensure liquidity, you will be entitled to make one partial withdrawal, every three policy years, up to a maximum of 20% of the Fund Value. The partial withdrawals are free of cost. The minimum partial withdrawal amount is Rs. 2,000. Partial withdrawals will be allowed after completion of five policy years and on payment of at least three full years' premium. Flexibility to choose the date from which you want to start receiving pension: Choose to start receiving your pension from anytime between 50-80 years, according to your requirement. Enjoy the flexibility to choose from 5 pension options: through which you can receive your pension. ICICI Pru Assure Pension: A retirement plan provides you an income to enjoy a comfortable lifestyle even after you stop working. 52 Presenting ICICI Pru Assure Pension, an innovative pension product especially designed to help you systematically save towards a joyful and carefree retirement. Moreover, this product provides you with a unique LifeCycle based Portfolio Strategy that regularly re-distributes your money across various asset classes based on your life stage, eventually providing you with a customized retirement solution. Rs 15,000 p.a. Minimum Premium Mode of Premium Payment Yearly / Half yearly / Monthly Min / Max Age at Entry 18 / 65 years Min / Max Age at Vesting 50 / 80 years Max cover ceasing age 80 years ICICI Pru Assure Pension : UIN 105L102V01 Features and benefits Guaranteed Addition (GA): 120% to 170% of one annual premium, based on number pf premiums paid, allocated to your Fund Value at the beginning of the 15th Policy year Additional allocation of units: More than 100% allocation to funds on premium payment from the 6th Policy year onwards LifeCycle based Portfolio Strategy: A unique and personalized strategy to create an ideal balance between equity and debt, based on your age Fixed Portfolio Strategy: Choose from 7 investment funds to invest your money, based on your financial goals and risk profile. You can switch funds 4 times a year, at no cost. For subsequent switches you will be required to pay a switch fee of Rs. 100. Partial withdrawal benefit: To ensure liquidity, you will be entitled to make one partial withdrawal, every three policy years, up to a maximum of 20% of the Fund Value. The partial withdrawals are free of cost. The minimum partial withdrawal amount is Rs. 2,000. Partial withdrawals will be allowed after completion of five policy years and on payment of at least three full years' premium. Flexibility to choose the date from which you want to start receiving pension: Choose to start receiving your pension from anytime between 50-80 years, according to your requirement. Enjoy the flexibility to choose from 5 pension options: through which you can receive your pension. 53 Forever Life: ICICI Prudential's Forever Life is a complete insurance cum pension plan that performs two crucial roles: it acts as a protective cover while you earn for your retirement, and provides you with regular pensions once you retire. Read more about the features and benefits of this plan. Minimum Sum Assured Rs. 50,000 Minimum Premium Rs. 6,000 per annum Minimum/ maximum entry age 20 years – 60 years Minimum/Maximum Term 5 years – 30 years Minimum/Maximum vesting age 50 years - 70 years Features and benefits Forever Life is a regular premium deferred pension plan, which provides you with the security of a life cover during your working years (the Accumulation phase of the policy) and regular pensions once you retire (Annuity phase of the policy). Take a look at the features and benefits of this plan: Premiums: Choose the Sum Assured and Vesting Age (age at which you want to start receiving your pensions). Depending on these as well as your age at entry, we determine your annual premium. Pre-decided vesting age: Choose the date from which you want to receive your pensions. Life cover: Enjoy the protective benefits of a life cover during the term of your policy i.e. the time from when you purchase the policy to the time you retire. The life cover amounts to the Sum Assured along with guaranteed additions and vested bonuses. Annuities: Receive the Sum Assured along with guaranteed additions and vested bonuses when you retire. Choose how you want to receive your annuities. 54 5 options of annuity payouts: Choose to receive your annuity out of five annuity options that come with this retirement plan. Guaranteed additions: Receive additional sums at the rate of 3.5% per annum compounded on the Sum Assured, for the first four years. Vested bonuses: Receive these from the 5th year onwards, as an annual compounded percentage of the Sum Assured. Death benefit: Should something happen to you, your nominee will receive the Sum Assured along with guaranteed additions and vested bonuses. Tax benefits: Enjoy tax savings on the premiums you pay (under u/s 80 CCC) and tax exemptions on death benefits [under u/s 10 (10 D)]. Immediate Annuity: Security and comfort during retirement is a top priority for everyone. It forms the central aspect of a dream that everyone hopes to achieve and realize at some point or the other during his or her life as a senior citizen. If you fear that you've missed the bus as far as retirement planning is concerned, there is no reason to despair. With ICICI Prudential's Single Premium Product, you can start earning an annuity income immediately after paying the premium. What's more, the annuity income is guaranteed for life which means that the insurance company pays you and your spouse (as the case maybe) a guaranteed pension till you live. Premium Payment Frequency Single Premium Product Annuity Options Available 5 annuity options Minimum Annuity Size 12,000 p.a. Minimum Age 45 years Maximum Age 80 years 55 ]Features and benefits a) Flexible Payout Modes-Monthly,Quarterly, Half-Yearly,Yearly b) Provision of Annuity Card which makes servicing of annuity very easy Five different payout options: Life Annuity Life Annuity with Return of Purchase Price Joint life Last Survivor without return of purchase price Joint Life Last Survivor with return of purchase price Annuity Guaranteed for 5/ 10/ 15 years and life thereafter c) No underwriting to be done in this plan Health Product Suite Under Health Product Suite, ICICI Prudential offers plans under the following major need categories: Health Assure Plus: Illnesses have a way of sneaking up on us, weakening our financial stability and stealing our family's peace of mind. It is best to keep oneself insured at all times against the most critical illnesses that are also the most common: Cancer, Coronary Artery Bypass Graft or Surgery, Heart Attack, Kidney Failure, Major Organ Transplant, and Stroke. ICICI Prudential's HealthAssure Plus financially insures you against these six critical illnesses. Should you ever be diagnosed with one or more of these, HealthAssure Plus provides you with a fixed sum, irrespective of your actual medical expenses. The health plan thus shoulders the heavy costs of your treatment and ensures you stay financially stable, come what may. This financial guarantee during illness is not all that HealthAssure Plus delivers. HealthAssure Plus comes with an added benefit: it insures your life, as well. So should an unexpected accident or disability claim your life, your family will receive the entire Sum Assured-an amount large enough to ensure they live securely, even in your absence. Life and Six Critical Illnesses: Cancer, Coronary Artery Coverage Against Bypass Graft or Surgery, Heart Attack, Kidney Failure, Major Organ Transplant, and Stroke Minimum Sum Assured Rs. 1 lakh Maximum Sum Assured Rs. 10 lakhs Minimum/Maximum 18 years to 55 years Entry Age Maximum Age at Policy 65 years 56 Maturity Minimum Policy Term 10 years Maximum Policy Term 30 years Maturity Benefit Yes, calculated on basis of no claims made Surrender Value Payable after 3 years of plan 15 days from the date on which you receive your Freelook Period documents Tax benefit under Sec. 80 (C) for premiums paid towards Tax Benefits both, Life and Critical Illness covers. HealthAssure Plus: UIN 105N051V01 Features and Benefits Long-term coverage against 6 critical illnesses: Choose a cover, for as long as 30 years with a premium guarantee for 5 years, depending on your age. Sum Assured of up to Rs. 10 lakhs: Receive the Sum Assured on diagnosis of any of the 6 covered critical illnesses: Cancer, Coronary Artery Bypass Graft/Surgery, Heart Attack, Kidney Failure, Major Organ Transplant, and Stroke. Life Insurance Sum Assured: This amount is paid to the nominee should something happen to the policyholder. Flexible withdrawal options: Choose to receive the benefit amount either in a lump-sum amount or in installments over 5 years. These installments will be payable as 25% in the first years and 20% each year for the next 4 year. Waiver of premium: Enjoy a waiver of premiums towards your Life Cover even after you receive the benefit amount on being diagnosed with a critical illness. Maturity benefit: Receive a 'No claim benefit' when the policy term ends, provided you have made no claims during the tenure. The Maturity Benefit is equal to the sum total of all the premiums paid. Surrender Value: You can surrender your plan after 3 years of cover. The Surrender Value will be paid immediately, provided you have paid all your premiums in the first 3 years. No medical/other bills: Receive your claim amount on diagnosis without having to show any bills. No medical examinations: Enjoy a waiver on medical examinations if you choose a Sum Assured up to Rs. 5 lakhs. 57 Tax benefits: Enjoy tax benefits on the premiums you pay (under u/s 80 C) for premiums paid for both Critical Illness and Life Cover. ICICI Pru MediAssure: Health problems, in most cases, strike us unexpectedly, resulting in a sudden financial burden. Despite this, only around one in every fifty Indians, is covered through some form of individual medical insurance. Further, it has been observed that 2 out of every 5 individuals hospitalised in India end up either borrowing money or selling assets to cover healthcare costs. This situation is set to escalate further as private health care spends in India are estimated to increase by 2 to 3 times over the next 12 years. Hence you need a solution that gives you peace of mind by providing financial cover to both you and your family against unforeseen hospitalisation events. So what should you look for when buying a medical/hospitalisation cover: 1. Does the plan guarantee you insurability at renewal irrespective of your health status? 2. Does the plan ensure that no new exclusions are added or no increase in premiums occurs just because a claim is made? 3. Does the plan clearly state exclusions at the time of taking the policy and also offer you cover against pre-existing conditions? ICICI Prudential Life Insurance presents MediAssure, a health insurance plan with a AAA guarantee for the family 1. Assured cover till age 75 years 2. Assured coverage for accepted pre-existing illnesses after 2 years 3. Assured price for 3 years Moreover, this policy covers all your hospitalisation needs with the flexibility to choose your location and quality of treatment. Term 3 years 18 - 65 years for individual policies Min/ Max age at 90 days–65 years for dependents in a family floater entry Maximum cover ceasing age for children is 25 years under the family floater Annual Limits Rs 2 lacs, Rs 3 lacs, Rs 5 lacs, Rs 7 lacs, Rs 10 lacs Premium Modes Monthly, Half yearly, Yearly Guaranteed Renewablity Renewability (subject to a cover ceasing age of 75 yrs) 30 Days Waiting Period (No waiting period applies for claims due to accident) 58 Premium Plan Plan Types Classic Plan Premiums shown below are for an Annual Limit of Rs 5 lacs Age Classic Premium 25 5,602 7,770 30 5,762 8,008 Yearly Premiums 35 6,417 8,991 (Male/ Female) 40 7,851 11,142 (in Rs.) 45 9,903 13,953 50 12,124 17,284 55 15,153 21,827 Premiums are shown for an individual option with an annual payment mode and are exclusive of service tax and education cess. Features & benefits Key Benefits of the MediAssure policy 1. Hospitalization coverage for your family under a single policy 2. Pre-existing illnesses & conditions covered subject to underwriting 3. Guaranteed insurability up to 75 years of age 4. Coverage for Pre & Post-Hospitalization expenses 5. Over 125 day care procedures covered 6. No claim bonus of 5% of annual limit for every claim free policy year 7. Cashless Hospitalization in our extensive network of hospitals across the country 8. Flexibility in upgrading hospital room facilities with additional co-pay 9. Avail tax benefits on premium paid u/s section 80D of IT Act, 1961 Benefits in detail 1. Family Floater: With the family floater option, you can additionally cover your spouse and up to the first three dependent children to the same annual aggregate limit. 2. Guaranteed insurability up to 75 years of age: You can renew the policy once and within 30 days from the termination date with the same terms and conditions. You can further renew the cover under the then offered ICICI Pru MediAssure product or its nearest substitute within 30 days from the policy termination date. The outstanding waiting period from the current policy will be applied on continuation of cover. Your premium 59 payable on renewal and on subsequent continuation of cover shall be reviewed subject to IRDA approval. 3. Pre exiting illnesses covered: Pre existing illnesses and conditions which are declared at inception and specifically accepted by the company would be covered under this policy. For conditions of diabetes or hypertension which are disclosed at inception and which are accepted for cover, any complications arising from these conditions will be covered after the first two consecutive policy years. 4. Pre-Hospitalisation and Post Hospitalisation Cover: Pre-Hospitalisation expenses up to 30 days prior to hospitalisation and post-hospitalisation expenses up to 60 days from the date of discharge are also covered. The Pre and Post Hospitalisation expenses would be covered only in case the expenses incurred are due to the main hospitalisation event. 5. Day Care Treatment Cover: In addition to hospitalisation, you are also covered for procedures which require less than 24 hours of hospitalisation. These include over 125 listed day care surgeries, Parenteral Chemotherapy, Radiotherapy, Intervention Cardiology, Intervention Radiology, Radio frequency Ablation Treatment, Lithotripsy and Dialysis. 6. No Claim Bonus: You are entitled to a 5% increase in your annual limit for every claim free year subject to a maximum of 25% increase in the annual limit. Incase a claim is made during a policy year; the bonus amount would revert to 0% in the following year. Hospital Care: Today, when you are young and healthy, planning for a contingency is not always a priority but the cost of treating even the smallest of ailments is on the rise. You realize it only when you or your loved ones has to undergo some medical emergency and you are faced with the challenge of organizing funds to meet the hospitalisation related expenses. Hence a medical emergency comes not only with emotional turmoil but also with a huge expense attached to it. During such an unexpected situation, your only concern should be that the best doctors and medical facilities are available and cost should not be a constraint so that you can take care of things without compromise but to ensure that best in class treatment is provided, the key to that is to be financially prepared for it. To help you manage this unexpected emergency, ICICI Prudential presents Hospital Care - a comprehensive insurance policy that has: 1. Facility of cashless hospitalisation in an extensive network of hospitals in India 2. Benefit amount will be paid in addition to payment received by you from other medical insurance plans. 3. You will receive lump-sum benefit amount, irrespective of the actual billing. 4. Long term guaranteed coverage up to 20 years. 60 5. Tax benefits on premium paid up to Rs.15,000 under Section 80D. Minimum / Maximum Age of Entry 1 year - 60 years (age nearest birthday) Minimum / Maximum Policy Term 10 years - 20 years Maximum Cover Ceasing Age 80 years Premium Payment Frequency Yearly, half-yearly & monthly Maturity / Death Benefit No maturity / death benefit is payable The premiums are valid for one year from the date of commencement of the policy. Thereafter, the company reserves the right to change the premium. Any change in the above premiums will take place subject to approval from IRDA and after giving notice to the policyholder. These premiums are exclusive of any service tax and education cess. Premium rates for Male and Female lives for term 10 - 20 years excluding service tax and Education cess. Age Band Plan A Plan B Plan C Plan D 1-5 2,876 4,685 6,494 8,304 6-10 2,631 4,174 5,717 7,263 11-15 3,415 5,742 8,068 10,394 16-20 3,905 6,720 9,535 12,351 21-25 4,062 7,034 10,005 12,977 26-30 4,330 7,570 10,810 14,050 31-35 4,861 8,631 12,402 16,172 36-40 5,542 9,991 14,439 18,888 61 A summary of the benefits payable on the insured events is given in the table below How and when benefits are Size of such benefits/ Event payable policy monies 1.Hospitalisation for more 1.Plan's DHCB will be 1.Hospitalisation for than 24 hrs. 1. The patient is paid for each day of more than 24 hrs. charged for at least 2 full days hospitalisation. room & board. 2.An additional 50% of 2.Admission to ICU 2.If admitted to an ICU plan's DHCB for each day of admission 3.If hospitalised for more than 3.An amount equal to 3 3.Convalescence 5 days continuously. times the plan's DHCB. 4.Based on the severity of 4.Surgery 4.If any surgery is performed the surgery a multiple of the plan's DHCB is paid. 5.Death during the 5.On death 5.No benefit is payable term of the policy 6.At the end of the term of the 6.Expiry of policy 6.No benefit is payable policy 7.No benefit is payable on 7.Surrender/Lapse 7.On stopping of premiums Surrenders/Lapses Features & Benefits . Hospitalisation Benefits (DHCB) Get a benefit amount if you are hospitalized for more than 24 hours i.e. at least 2 consecutive nights and must be charged for 2 days room expenses. The benefit amount is fixed and will be paid irrespective of actual hospitalisation expenses DHCB is payable for hospitalisation up to 90 days per policy year, which includes any days spent in Intensive Care Unit. 62 2. Intensive Care Unit (ICU) benefit An additional 50% of DHCB amount per day is paid to you if you get admitted to an Intensive Care Unit (ICU), and this amount is paid depending on the plan chosen. The ICU benefit is payable for hospitalisation up to 30 days per policy year, and is paid in addition to DHCB. 3. Recuperating benefit A post-hospitalisation benefit amount in addition to all other amounts will be paid out to ensure that follow-up tests, medicines and consultations go ahead as planned . You are eligible for recuperating benefit only on being hospitalized continuously for 5 or more days DHCB. 4. Surgery benefit Over and above the hospitalisation expenses, a fixed lump-sum amount is also paid for more than 900 surgical procedures. These surgeries have been classified into four grades, depending on the type and severity. A sample list of surgeries is given below: 5.Benefit amounts at-a-glance You can choose any one plan, from the following four options Each plan has fixed benefit amounts, as shown below: Plan A Plan B Plan C Plan D Benefit (Rs.) (Rs.) (Rs.) (Rs.) Daily Hospitalistion Cash 1,000 2,000 3,000 4,000 Benefit (per day) ICU (Intensive Care Unit) 500 1,000 1,500 2,000 Benefit per day) Recuperating Benefit 3,000 6,000 9,000 12,000 Surgery Benefit Surgery grade 1 15,000 30,000 45,000 60,000 Surgery grade 2 50,000 1,00,000 1,50,000 3,00,000 Surgery grade 3 75,000 1,50,000 2,25,000 4,00,000 Surgery grade 4 1,00,000 2,00,000 3,00,000 4,00,000 Waiting period – 90 days except accidental claims. 63 Sample Case 1 In case you opt for plan A, then for an 8-day hospitalisation, your benefit amount is DHCB = 8 days * Rs. 1,000 per day = Rs. 8,000 + Recuperating Benefit = Rs. 3,000 (refer to the table below for benefit amounts) Total benefit amount = Rs. 11,000 Sample Case 2 In case you opt for plan D, then for an 6-day hospitalisation, including 4 days in ICU, with a Grade 2 surgery, your benefit amount is DHCB = 6 days * Rs. 4,000 per day = Rs. 24,000 + 4-day ICU benefit = 4 days * Rs. 2,000 per day = Rs. 8,000 + + Grade 2 Surgery benefit = Rs. 2,00,000 (refer to the table below for benefit amounts) 6. High benefit limits Hospital Care policy offers you high benefit limits. For instance,under plan A, you can claim up to Rs.4 lakhs for multiple claims, including surgical benefit up to Rs.3 lakhs annually. However, for the entire policy term, you can make multiple claims up to Rs.20 lakhs. Benefit Limits Plan A (Rs.) Plan B (Rs.) Plan C (Rs.) Plan D (Rs.) Yearly Limit 4,00,000 8,00,000 12,00,000 16,00,000 Surgical benefit 3,00,000 6,00,000 9,00,000 Policy Term Limit 20,00,000 40,00,000 60,00,000 80,00,000 Benefits of Hospital Care Payout in addition to other plans You can claim benefit amount from this policy as well as any other medical insurance policy you may have, since the company only requires submission of photocopies or duplicates of bills and certificates. The lump-sum benefit amount will be paid to you, irrespective of your actual medical expenses. 64 Cashless hospitalisation You don't need to make any payment upfront. We shall pay the billed amount upto the benefit payable under the product, directly to the hospital, as settlement of your dues. This facility is available through our extensive list of network hospitals across the country. Click here for the list of network hospitals. Multiple claims Life being uncertain, you may incur medical treatment costs several times. You can make multiple claims during the policy term, so long as the total amount payable does not exceed the benefit limit you are entitled to. Transparent coverage norms This policy is very transparent and informs you upfront about benefit payouts, the coverage and exclusions. This helps you plan your finances in the event of an emergency, so that you can concentrate on the treatment. Guaranteed coverage Medical eventualities can occur at any time. This policy guarantees you coverage for the entire policy term, so that you enjoy the benefit of the cover, irrespective of any claims made or a change in your health status during the policy term. Tax benefit The premium paid by you up to Rs.15,000 p.a. is eligible for tax benefit under Section 80 D, as per prevailing Income Tax laws . General Exclusions 1. No benefits shall be payable with respect to any period of Hospital Confinement/ICU stay unless the entire confinement / ICU stay and all the Hospital services rendered and performed there had been recommended by a physician and are in accordance with the diagnosis and treatment of the condition for which hospitilisation was required. 2. No benefits shall be paid for the following services, products and conditions: 1. pre-existing illness unless stated in the proposal form and specifically accepted by the ompany and endorsed thereon; 2. hospitalisation and / or treatment within the Waiting Period (as stated in clause 6); 3. eye tests, refractive errors of the eyes, refractive surgery; 65 4. any dental surgery, extraction of impacted tooth / teeth, orthodontics or orthographic surgery, or Temporo-Mandibular Joint Disorder except as necessitated by an accidental injury; 5. treatment arising from pregnancy which shall include childbirth, infertility, erectile dysfunction or impotency, miscarriage, abortion, sterilization and contraception including any complications relating thereto; 6. treatment for congenital conditions including physical defects present from birth; 7. hospitalisation primarily for investigatory purpose, diagnosis, X-ray examination, general physical or routine medical examination; preventive treatments / medicines, treatments / examinations specifically for weight reduction or gain regardless of whether the same is caused (directly or indirectly) by a medical condition; convalescence, custodial, sanitaria, rehabilitation centre, nature cure clinics or rest care and similar establishments; or private nursing. 8. treatment arising from any geriatric, psycho-geriatric or psychiatric condition, insanity, mental or nervous breakdown or "rest cures"; 9. treatment directly or indirectly arising from alcoholism or drug abuse and any injury or sickness which the Life Assured may suffer after he has taken intoxicating liquors or drugs; 10. treatment directly or indirectly arising from or consequent upon war, commando or bomb disposal duties or training, terrorism, invasion, acts of foreign enemies, engagement in hostilities, active military and police duties such as maintenance of civil order, whether war be declared or not, civil war, rebellion, active participation in strikes, riots or civil commotion, revolution, insurrection or military or usurped power or travel by military aircraft or waterborne vessel, and full- time service in any of the armed forces; 11. Acquired Immune Deficiency Syndrome (AIDS) and all illnesses or diseases caused by or related to the Human Immuno-deficiency Virus (HIV); 12. sexually transmitted diseases (STD); 13. cosmetic or plastic surgery except to the extent that such surgery is necessary for the repair of damage caused solely by Accidental Injuries, treatment of xanthelesema, syringoma, acne and alopecia; 14. study and treatment of sleep apnoea; 15. deliberate exposure to exceptional danger (except in an attempt to save human life); 16. nuclear disaster, radioactive contamination and/or release of nuclear or atomic energy; and injuries arising out of or in connection with: 17. military duties of a peace-time nature, namely normal training range work and military exercises; 18. treatment for injury or illness caused by intentionally self-inflicted injuries; or any attempts at suicide while sane or insane; 19. treatment for injury or illness caused by violation or attempted violation of the law or resistance to arrest; 20. treatment for injury or illness caused by professional sports, racing of any kind, scuba diving, aerial sports, activities such as hand-gliding, ballooning, and any other hazardous activities or sports unless agreed by special endorsement; 66 21. All organ transplant where the Life Assured acts as a donor and all expenses incurred by the donor for such organ transplant; 22. Circumcision unless necessary for treatment of a diseases or necessitated due to an accident; 23. Diagnosis and treatment outside India. However, this exclusion shall not be applicable in the following countries: Australia, Brunei, Canada, Dubai, Hong Kong, Japan, Malaysia, New Zealand, Singapore, Switzerland, UAE, USA, and countries of the European Union. The company may at its discretion review the above list of accepted foreign countries from time to time. Claims documents from outside India are only acceptable in English language unless specifically agreed otherwise, and dully authenticated 24. Failure to seek or follow reasonable medical advice. 25. Ayurvedic, Homeopathy, Unani, naturopathy, reflexology, acupuncture, bone- setting, herbalist treatment, hypnotism, rolfing, massage therapy, aroma therapy or any other treatments other than Allopathy /western medicines. 26. Hospitilisation and treatment of any kind not actually performed, necessary or reasonable, or any kind of elective surgery or treatment which is not medically necessary or any surgical procedure not performed in a hospital. Crisis Cover: Life is hectic in today's fast paced world. Along with the rapid pace and progress comes the bane of modern life such as increased stress, poor diet and lack of exercise. The alarming aspect is that, owing to these factors, more and more Indians are becoming vulnerable to critical illnesses every year. These illnesses, coupled with increasing costs of treatment, have made recovery a long and expensive process. It goes without saying that securing your family's financial future is a part of prudent financial planning. However, no less important is your health and well-being, for which you need a comprehensive health coverage. And, given our lifestyles, it should ideally be a plan that provides complete protection against Disease, Disability and Death. 67 Keeping this need in mind, ICICI Prudential Life Insurance presents Crisis Cover. This all- inclusive long term insurance policy provides coverage against 35 critical illnesses, total and permanent disability, and also death. So, get the right protection tailored to suit your lifestyle, with this plan which is Comprehensive Affordable Long Term Eligible Age 18 years to 60 years Coverage term 10 years to 50 years Maximum Coverage Ceasing 75 years Age Sum Assured Rs. 300,000 to Rs. 2,000,000 Premium payment frequency Monthly, Half-yearly, Annual As per prevailing tax laws under Section 80C & Tax Benefit 80D Modes of Premium Payment: Premiums are payable through any of the following modes: 1. Cash* 2. Cheques 3. Demand Drafts 4. Pay Orders 5. Bankers Cheque 6. Internet facility as approved by the Company from time to time. 7. Electronic Clearing System 8. Credit Cards (Only standing instruction) *Amount and Modalities will be subject to company Rules and relevant legislation/regulations 68 Premium Payment frequency: Your Premium will fall due in every policy year based on the periodicity of payment of premiums, i.e. Yearly, Half-Yearly or Monthly How much does the coverage cost? The most comprehensive coverage is also affordable. Below are the annual premium rates for a Sum Assured of Rs. 500,000 for various policy terms and entry ages for Males. Age(Years) Policy Term 15 years 20 years 25 years 25 Rs. 2435 Rs. 2474 Rs. 2734 30 Rs. 2896 Rs. 3204 Rs. 3738 35 Rs. 4106 Rs. 4724 Rs. 5576 40 Rs. 6282 Rs. 7281 Rs. 8442 45 Rs. 9804 Rs. 11,182 Rs. 12,554 The premiums are guaranteed for first five years from the date of commencement of the policy. Thereafter, the premiums are annually reviewable. Any change in premium will only be effected with approval from IRDA. Above premiums are inclusive of modal rebate and Large SA discount & exclusive of any service tax and education cess. Waiting Period: No benefit in respect of Critical Illness Benefit (CIB) or Total & Permanent Disability Benefit (TPDB) will be payable if it has occurred due to sickness within the first 6 months of the policy or first 3 months of the policy reinstatement date where the policy has lapsed for more than 3 months. Key benefits of Crisis Cover 1. Benefit amount paid on diagnosis of any of the 35 diseases (critical Illnesses), disability or death 2. Receive lump-sum benefit amount irrespective of actual billing 3. Benefit amount will be paid in addition to payment received by you from other medical insurance plan 4. Long term coverage upto 75 years of age 5. Coverage continues even after claiming benefit on select critical illness 6. Premium paid is eligible for deduction under section 80C & section 80D* 69 * The overall limit of deduction for investment u/s 80C & u/s 80D of the Income Tax Act, 1961 are Rs. 1,00,000 & Rs. 15,000 respectively, subject to conditions mentioned therein. How does Crisis Cover work? 1. Choose a Sum Assured under Crisis Cover 2. Pay Premium based on your age and sum assured and term of cover chosen 3. Get the applicable sum assured in the event of being diagnosed with a critical illness or on being rendered totally disabled or on death, whichever occurs first. 4. Remain covered even after a claim on select Critical Illnesses Get the Sum Assured on under the plan on first occurrence of Death or Total Permanent Disability or on diagnosis of any one of the following 35 Critical illnesses. Flexible Payouts for the 35 Critical Illnesses covered Flexible payouts for 35 Critical Illnesses covered are as below: CI with Coverage Continuation with Full Payout Advantage Advantage Apallic Syndrome Benign Brain Tumour Angioplasty* Blindness Alzheimer's Disease Brain Surgery Aplastic Anaemia Cancer Cardiomyopathy Chronic Lung Disease Deafness Coma Loss of Speech Coronary Artery Bypass Medullary Cystic Disease surgery Motor Neurone Disease End stage liver disease Multiple Sclerosis Heart Attack Muscular Dystrophy Heart Valve Surgery Parkinson’s Disease Kidney Failure Poliomyelitis Loss of Independent existence Primary Pulmonary hypertension Loss of Limbs SLE with Lupus Nephritis Major Burns Major Head Trauma Major Organ Transplant Paralysis Stroke Surgery to aorta Terminal Illness 70 The Critical Illnesses with Full Payout Advantage: Get the full benefit amount for Critical Illnesses covered under this category. The benefit amount payable is equal to the full sum assured chosen under the policy. The Critical Illnesses with Coverage Continuation Advantage: The maximum benefit amount payable is Rs. 500,000* for Angioplasty and Rs. 1,000,000 for all other critical illnesses in this category and the cover continues for all other remaining illnesses benefits for the remaining sum assured chosen under the policy.The premium is also revised proportionately on the following Policy anniversary for the reduced Sum Assured. * 50% of sum assured with a max limit of Rs. 500,000 Death or Total & Permanent Disability The Full Sum Assured as chosen under the plan is paid in the event of Death or Total Permanent Disability of the Life Assured. This benefit is payable even if death or disability occurs because of an accident. Claims Process made simple Our claims process is an easy 3-step process. This will ensure that you get a hassle-free and convenient claims experience. 1. Submit a written notice along with the proof of diagnosis of the critical illness / disability death required for claim. 2. The company verifies the documents and admits the claim. 3. The company pays the entire benefit amount as applicable. Group Plans ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. 1. Group Gratuity Plan: ICICI Pru”s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also customize to structure schemes that can provide benefits beyond the statutory obligations. 2. Group Superannuation Plan: ICICI Bank offers flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for partial commutation of the annuity at the time of retirement. 71 3. Group Term Plan: ICICI Pru”s flexible group term solution helps provides affordable cover to members of 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. 4. Flexible Rider Options: ICICI Pru Life offers flexible riders, which can be added to the basic policy at marginal cost, depending on the specific of the customer. 5. Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit. 6. Accident benefit: This rider option pays the sum assured the rider on death due to accidents. 7. Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical prior to death. 8. Major Surgical Assistance Benefits: provides financial support in the event of medical emergencies, ensuring that benefits are payable to the life assured for medical expenses Incurred for surgical procedures. Cove is offered against 43 different surgical procedures. 9. Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available on SmartKid, SecurePlus and Cashplus. 10. Waiver of Premium: In Case of total and permanent due to an accident, the premiums are waived till maturity. This rider is available with SecurePlus and CashPlus. 72 FINANCE DEPARTMENT INTRODUCTION: Financial management, as an academic discipline, has undergone fundamental changes in its scope and coverage. In the early years of its evolution it was treated synonymously with the raising of funds. In the current literature pertaining to financial Management, a broader scope so as to include, in addition to procurement of funds, efficient use of resources is universally recognized. Similarly, the academic thinking as regards the objective of financial management is also characterized by a change over the years. Financial management, as an integral part of overall management, is not a totally independent area. It draws heavily on related disciplines and fields of study, such as economics, accounting, marketing, production and quantitative methods. Although these disciplines are interrelated, there are key differences among them. The relationship between finance and accounting, conceptually speaking, has two dimensions: (1) They are closely related to the extent that accounting is an important input in financial decision-making and (2) There are key differences in viewpoints between them. The viewpoint of accounting relating to the funds of the firm is different from that of finance. The measurement of funds (income and expenses) in accounting is based on the accrual principle/system. Capitalization and Capital Structure: Capital structure can affect the value of a company by affecting either its expected earnings or the cost of capital, or both. While it is true that financing-mix cannot affect the total operating earnings of a firm, as they are determined by the investment decisions, it can affect the share of earnings belonging to the ordinary shareholders. The capital structure decision can influence the value of the firm through the earnings available to the shareholders. But the leverage can largely influence the value of the firm through the cost of capital. In exploring the relationship between leverage and value of a firm the relationship between leverage and cost of capital from the standpoint of valuation. The importance of an appropriate capital structure is, thus, obvious. There is a viewpoint that strongly supports the close relationship between leverage and value of a firm. There is an 73 equally strong body of opinion, which believes that financing-mix or the combination of debt and equity has no impact on the shareholders’ wealth and the decision on financial structure is irrelevant. In other words, there is nothing such as optimum capital structure. Capital structure theories are based on certain assumptions, they are:  There are only two sources of funds used by a firm: perpetual risk less debt and ordinary shares.  There are no corporate taxes. This assumption is removed later. The dividend-payout ratio is 100. That is, the total earnings are paid out as dividend to the shareholders and there are no retained earnings. The total assets are given and do not change. The investment decisions are, in other words, assumed to be constant. The total financing remains constant. The firm can change its degree of leverage (capital structure) either by selling shares and use the proceeds to retire debentures or by raising more debt and reduce the equity capital. The operating profits (EBIT) are not expected to grow. All investors are assumed to have the same subjective probability distribution of the future expected EBIT for a given firm. Business risk is constant over time and is assumed to be independent of its capital structure and financial risk.  Perpetual life of the firm. Leverage Analysis: A firm can make use of different sources of financing whose costs are different. These sources may be, for purposes of exposition, classified into those that carry a fixed rate of return and those on which the returns vary. The fixed returns on some sources of finance have implications for those who are entitled to a variable return. Thus, since debt involves the payment of a stated rte of interest, the return to the ordinary shareholders is affected by the magnitude of debt in the capital structure of a firm. The employment of an asset or source of funds for which the firm has to pay a fixed cost or fixed return may be termed as leverage. Consequently, the earnings available to the shareholders as also the risk are affected. If earnings les the variable costs exceed the fixed cost, or earnings 74 before interest and taxes exceed the fixed return requirement, the leverage is called favorable. When they do not, the result is unfavorable leverage. There are 2 types of leverage- ‘operating’ and ‘financial’. The leverage associated with investment (asset acquisition) activities is referred to as operating leverage, while leverage associated with financing activities is called financial leverage. While we are basically concerned with financial leverage for purposes of the financing decision of a firm, the discussion of operating leverage is to serve as a background to the understanding of financial leverage because the two types of leverage are closely related. Operating leverage is determined by the relationship between the firm’s sales revenues and its earnings before interest and taxes (EBIT). The earnings before interest and taxes are also generally called as operating profits. Financial leverage represents the relationship between the firm’s earnings before interest and taxes (operating profits) and the earnings available for ordinary shareholders. The operating profits (EBIT) are thus, used as the pivotal point in defining operating and financial leverage. In a way, operating and financial leverage represent two stages in the stages in the process of determining the earnings available to the equity shareholders and, hence, their discussion in this chapter. Apart from the elaboration of the return-risk implications, their combined effect has also been discussed. Operating leverage results from the existence of fixed operating expenses in the firm’s income stream. The operating leverage may be defined as the firm’s ability to use fixed operating costs to magnify the effects of changes in sales on its earnings before interest and taxes. Operating leverage occurs any time a firm has fixed costs that must be met regardless of volume. We employ assets with fixed cost in the hope that volume will produce revenues more than sufficient to cover all fixed and variable costs. In other words, with fixed costs, the percentage change in profits accompanying a change in volume is greater than the percentage change in volume. This occurrence is known as operating leverage. Financial leverage relates to the financing activities of a firm. The sources from which funds can be raised by a firm, from the point of view of the cost/charges, can be categorized into  those which carry a fixed financial charge, and  those which do not involve any fixed charge. The sources of funds in the first category consist of various types of long-term debt, including bonds, debentures, and preference shares. Long-term debts carry a fixed rate of interest which is a contractual obligation for the firm. Although the dividend on preference shares is not a contractual obligation, it is fixed charge and must be paid before anything is paid to the ordinary shareholders. The equity shareholders are entitled to the remainder of the operating profits of the firm after all the prior obligations are met. Financial leverage results from the presence of fixed financial charges in the firm’s income stream. These fixed charges do not vary with the earnings before interest and taxes (EBIT) or operating profits. 75 Capital Budgeting: Capital budgeting decision pertains to fixed/long-term assets which by definition refer to assets which are in operation, and yield a return, over a period of time, usually, exceeding one year. They therefore, involve a current outlay or series of outlays of cash resources in return for an anticipated flow of future benefits. In other words, the system of capital budgeting is employed to evaluate expenditure decisions which involve current outlays but are likely to produce benefits over a period of time longer than one year. These benefits may be either in the form of increased revenues or reduced costs. Capital expenditure management, therefore, includes addition, disposition, modification and replacement of fixed assets. Capital budgeting decisions are of paramount importance in financial decision-making. In the first place, such decisions affect the profitability of a firm. They also have a bearing on the competitive position of the enterprise mainly because of the fact that they relate to fixed assets. The fixed assets represent, in a sense, the true earning assets of the firm. They enable the firm to generate finished goods that can ultimately be sold for profit. The current assets are not generally earning assets. Rather, they provide a buffer that allows the firms to make sales and extend credit. True, current assets are important to operations, but without fixed assets to generate finished products that can be converted into current assets, the firm would not be able to operate. Further, they are ‘strategic’ investment decisions as against ‘tactical’- which involve a relatively small amount of funds. Therefore, such capital investment decisions may result in a major departure from what the company has been doing in the past. Acceptance of a strategic investment will involve a significant change in the company’s expected profits and in the risks to which these profits will be subject. Working Capital Management: Working capital management is concerned with the problems that arise in attempting to manage the current assets, the current liabilities and the interrelationship that exists between them. The term current assets refer to those assets which in the ordinary course of business can be, or will be, converted into cash within one year without undergoing a diminution in value and without disrupting the operations of the firm. The major current assets are cash, marketable securities, accounts receivable and inventory. Current liabilities are those liabilities which are intended, at their inception, to be paid in the ordinary course of business, within a year, out of the current assets or earnings of the concern. The basic current liabilities are accounts payable, bills payable, bank overdraft, and outstanding expenses. The goal of working capital management is to manage the firm’s current assets and liabilities in such a way that a satisfactory level of working capital, it is likely to become insolvent and may even be forced into bankruptcy. The current assets should be large enough to cover its current liabilities in order to ensure a reasonable margin of safety. Each of the current 76 assets must be managed efficiently in order to maintain the liquidity of the firm while not keeping too high a level of any one of them. Each of the short-term sources of financing must be continuously managed to ensure that they are obtained ad used in the best possible way. The interaction between current assets and current liabilities is, therefore, the main theme of the working capital management. Receivables Management: The receivables represent an important component of the current assets of a firm. The receivables are defined as ‘debt owned to the firm by customers arising from sale of goods or services and in the ordinary course of businesses. When a firm makes an ordinary sale of goods or services and does not receive payment, the firm grants trade credit and creates accounts receivable, which could be collected in the future. Receivables management is also called trade credit management. Thus, accounts receivables represent an extension of credit to customers, allowing them a reasonable period of time in which to pay for the goods received. The sale of goods on credit is an essential part of the modern competitive economic systems. In fact, credit sales and, therefore, receivables are treated as a marketing tool to aid the sale of goods. The credit sales are generally made on open account in the sense that there are no formal acknowledgements of debt obligations through a financial instrument. As a marketing tool, they are intended to promote sales and thereby profits. However, extension of credit involves risk and cost. Management should weigh the benefits as well as cost to determine the goal of receivables management. The objective of receivables management is ‘to promote sales and profits until point is reached where the return on investment in further funding receivables is less than the cost of funds raised to finance that additional credit (i.e. cost of capital)’. The specific costs and of receivables management, are: 1. Cost 2. Collection cost 3. Capital cost 4. Delinquency cost 5. Default cost Dividend policy: Dividend refers to that portion of a firm’s net earnings which are paid out to the shareholders. Since dividends are distributed out of profits, the alternative to the payment of dividends is the retention of earnings/profits. The retained earnings constitute an easily accessible important source of financing the investment requirements of firms. There is, thus, a type of inverse relationship between retained earnings and cash dividends. Larger the retention, 77 lesser dividends; and smaller retentions, larger dividends. Thus, the alternative uses of the net earnings-dividends and retained earnings-are competitive and conflicting. A major decision of financial management is the dividend decision in the sense that the firm has to choose between distributing the profits to the shareholders and plugging them back into the business. The choice would obviously hinge on the effect of the decision on the maximizing present values; the firm should be guided by the consideration as to which alternative use is consistent with the goal of wealth maximization. That is, the firm would be well advised to use the net profits for paying dividends to the shareholders if the payment will lead to the maximization of wealth of the owners. If not, the firm should rather retain them to finance investment programes. The relationship between dividends and value of the firm should, therefore, be the decision criterion. There are however, conflicting opinions regarding the impact of dividends on the valuation of a firm. According to one school of thought, dividends are irrelevant so that the amount of dividends paid has no effect on the valuation of a firm. On the other hand certain theories consider the dividend decision as relevant to the value of the value of the firm measured in terms of the market price of the shares. The crux of the argument supporting the irrelevance of dividends to valuation is that the dividend policy of a firm is a part of its financing decision. As a part of the financing decision, the dividend policy of the firm is a residual decision and dividends are a passive residual. If the dividend policy is strictly a financing decision, whether dividends are paid out of profits, or earnings are retained, will depend upon the available investment opportunities. It implies that when a firm has sufficient investment opportunities, it will retain the earnings to finance them. Conversely, if acceptable investment opportunities are inadequate, the implication is that the earnings would be distributed to the shareholders. The test of adequate acceptable investment opportunities is the relationship between the return on investments and the cost of capital. As long as investments exceed cost of capital, a firm has acceptable investment opportunities. In other words, ifs firm can earn a return higher tan its cost of capital; it will retain the earnings to finance investment projects. If the retained earnings fall short of the total funds required, it will raise external funds-both equity and debt-to make up the shortfall. 78 RESEARCH DESIGN AND METHODOLOGY Objectives: To Study the Brand awareness of the new product i.e. Unit Linked Insurance Plans in Meerut City. To know what are the priorities of people of city for making investment in Insurance. To know what are the perception of the consumer about ICICI Prudential Life Insurance Co. To know the standing of the ICICI Prudential Life Insurance Co. in Meerut City. Data Source: The data would be collected from both primary as well as secondary source. Consumers would be asked to fill questionnaires to arrive at the information. Various secondary sources of data as magazines, journal, Internet etc. would also be explored. Sampling Area: The sampling areas of this research are Meerut. Sampling method: The convenient sampling method was used for this research and the respondents were those who have already taken life insurance policy. Sample Size: The size of this research is 50 respondents. 79 Research Instrument: The research instruments, which was used, for collecting the data is questionnaire. Method of contact: The method of contact would be personal and direct as this would help to qualify the customer’s issues while filling up the questionnaire and also helps them if they do not have the knowledge about any insurance plan of the company. Method of making an approach for Sales: After analyzing the data form the questionnaires the needs of prospects were identified and the best suitable insurance solution was suggested to them accordingly. Data Collection and Analysis Q.1.Do you have a Life Insurance Policy? Criteria No. Of Respondents Yes 50 No 0 As our sample is those people who have insurance so all the respondents are falling under the “Yes” criteria. 80 Q.2.Which Company’s Insurance Policies do you have? Company No. of Respondents LIC 50 Birla Sunlife 2 SBI 3 ICICI Pru. Life 10 Kotak Mahindra 3 Post Office 15 HDFC 3 No. of Respondents 60 50 No. of 40 30 Respondents 20 10 0 LIC SBI Mahindra HDFC Kotak As from the above chart it is very clear the all of the respondents have an insurance of the LIC while some of them have an insurance of the other companies like post Office, ICICI Prudential Life insurance Co., HDFC Co. Etc. The reason behind this is that the LIC competitor since more than four decades and the Indian Govt. allowed the Introduction of private player in Insurance in the year 2000. 81 Q.3What is amount of insurance premium you pay annually? Criteria No. of Respondents Below Rs. 10,000 11 10,000 to 20,000 18 20,000 to 30,000 6 30,000 to 40,000 5 Above 40,000 10 The analysis of the above available data is merely to find out the percentage of income that one is willing to invest in insurance. Q.4What priorities would you consider most important, while purchasing a policy? Criteria/Rank 1 2 3 4 5 Total Death Benefit 29 10 6 2 3 50 Children’s 7 13 21 3 0 44 Future Retirement 5 5 6 20 7 43 Planning Tax Planning 8 18 8 8 6 48 Financial 2 5 3 11 25 46 Planning From the table and chart it can be say that most of the people rank death benefit first for the decision to make investment in Insurance. Their second priority is tax planning because the premium, which is paid by the people towards Insurance, is deductible up to certain limit from the income and also the maturity amount is also tax free. The third and fourth priorities are children’s future and retirement planning. 82 Q.5 Do you have any knowledge of the stock market? Criteria No. of Respondents Yes 32 No 18 Q.6If “Yes” do you have any knowledge about unit linked insurance plans? Criteria No. of Respondents Yes 25 No 7 The question number 5 and 6 are designed to know the awareness of people who have knowledge of share market or deals in shares also have the knowledge of the new modern insurance product i.e. Unit Linked Insurance Plan. From the available data it can be say that those who deal in shares are also aware of the ULIP. Q.7Is your current Insurance policy “Unit Linked” or “Traditional? Criteria No. of Respondents Only Unit Linked 0 Only Traditional 39 Both 11 83 From the Q. No. 7 we can say that even though the modern products available in the market since more than two years and which are having the more flexibility and also giving the higher return than traditional one most of the people do not have or may be not aware of it which shows the lack of brand awareness and it requires an aggressive promotional efforts on the part of company. There is a lot of scope available for the company to attract more customers by giving or introducing most suitable ULIP products and at the same time increase the customer base. Q.8 If given a choice, where would you like to invest your money? (Please Rank Your Choice) Choice/Rank 1 2 3 4 5 6 7 8 Total Mutual Fund 0 1 5 1 25 12 5 1 50 Insurance 4 12 14 4 8 3 0 0 45 Gold 4 8 1 2 2 5 13 13 48 Equities 17 3 0 5 2 6 1 0 34 Post Office 22 12 12 2 2 0 0 0 50 Debenture 0 2 4 10 1 14 2 0 33 Bank Deposit 0 6 12 19 1 0 3 1 42 Other 10 5 0 2 1 0 0 2 20 This question is mainly designed to know the investment priorities of the people of Ahmedabad town. The objective behind this Q. is that after the Charotar Nagrik Co-oprerative Bank and other Credit Societies, which are giving higher interest on deposits, the whole scenario of city is changed. Most of the people prefer to invest in post office saving schemes and where their money is safe even though the return is very less. So there is a great need to divert the efforts of the company towards the safety and security as ICICI Prulife is a private insurance Company. 84 Q.9 According to you what are the factors that would affect you decision while purchasing an insurance policy? Criteria/Rank 1 2 3 4 5 50 Premium 12 15 15 6 2 50 Return 21 17 8 2 2 50 Safety 20 14 15 1 0 50 Liquidity 1 1 9 18 21 50 Market 1 2 0 16 21 40 Condition The question No. 9 is designed to know which the factors are affecting the most to the prospect while making decision to invest in insurance. As far as investment in insurance is concerned most of the people want that it should be safe and at the same time giving the compatible returns because insurance is not only for death benefit it is also a saving tool for future. So the mix response of respondents is welcomed. Available data is such that there is a bit ambiguity. But we can say that the most affecting factors to the prospect are return and safety. As per the finance theory risk and return goes in hand in hand but as far as insurance is concerned it is all about the compatible and safe returns over others. Q. 10 Are you or ay of your family members are planning to buy an insurance policy in near future? Criteria No. of Respondents Yes 13 No 37 85 This question is taken to collect the information of those respondents who are going to plan to purchase insurance within near future that is used by the company for making personal contact for sale. Q. 11 Are your needs satisfied with your current investment in insurance? Criteria No. of Respondents Yes 10 No 30 Q. 11(a) If “No”, then give reasons? Criteria No. of Respondents High Premium 0 Low Return 1 Poor Services 7 Others 2 The question No.11 and 12 are designed to know the percentage of people who are not satisfied with the current investment in insurance and also to know the reasons behind it. So, that the company can focus on those areas where the competitors fail. Because now a days the competition is very stiff in the insurance industry. All companies are trying to attract more customers by anyhow. So it will be useful for designing the promotional schemes of the company. From the above table and chart it can be seen that the respondents who are dissatisfied give the main reason behind it are poor services. There are many others reasons like more time taken by the company for claim settlement, non- dispatchment of cheques and other important vouchers, etc. So the company can 86 improve upon these and increase its market share by offering quality service to the customers. Q. 12 Do you know anything ICICI Prudential Life Insurance? Criteria No. of Respondents Yes 30 No 20 Q. 13 If “Yes”, from where did you come to know about the company? Criteria No. of Respondents Television 4 News Paper 3 Sales Representative 14 Others source 9 Q. 14 What do you feel about “ICICI Prudential Life Insurance? (Open Ended) The question No.13, 14 and 15 are designed to know the company awareness the respondents of the city and also the source of awareness. But I felt very much difficulty while filling up these questions because most of the people know about the company but they know it as an ICICI Bank not as a different identity. So there is a great need to design the advertisement campaign in such a way that it will create the different image of the company. The main reason behind this is that the image of ICICI Bank in city is such that most of the people ask for charges first than the service that it provides. 87 QUESTIONNAIRE Q.1. Do you have a Life Insurance Policy? Yes No Q.2. Which Company’s Insurance Policies do you have? (Please specify the numbers) LIC SBI Life Insurance HDFC Standard Life New York MaxLife Birla Sunlife Alliance Bajaj Cholamandalam ICICI Pru. Life Insurance TATA AIG Insurance MetLife Insurance ING Vysya OM Kotak Mahindra AVIVA Life AMP Sanmar Q.3 What is amount of insurance premium you pay annually? Amount Q.4 What priorities would you consider most important, while purchasing a policy? (Please Rank Your Choice) Death Benefit Children’s Education 88 Retirements Benefit Tax Planning Financial Planning Q.5 you have any knowledge of the stock market? Yes No Q.6 If “Yes” do you have any knowledge about unit linked insurance plans? Yes No Q.7 Is your current Insurance policy “Unit Linked” or “Traditional? Yes No Q.8 If given a choice, where would you like to invest your money? (Please Rank Your Choice) Mutual Funds Post Office Schemes Insurance Policies Debentures Gold Banks (FD’s etc.) Equities If other (specify)___________ Q.9 According to you what are the factors that would affect you decision while purchasing an insurance policy? (Please Rank Your Choice) Premium Return 89 Safety Liquidity Market Condition Q. 10 Are you or any of your family members are planning to buy an insurance policy in near future? Yes No Q. 11 Are your needs satisfied with your current investment in insurance? Yes No Q. 11 (a) If “No”, then give reasons? High Premium Poor Services Low Return Other Reasons__________ ______________________ Q. 12 Do you know anything ICICI Prudential Life Insurance? Yes No Q. 13 If “Yes”, from where did you come to know about the company? T.V. Newspaper Magazine Radio Internet Hoarding Others (Please Specify)_____________________________ 90 Q. 14 What do you feel about “ICICI Prudential Life Insurance? __________________________________________________________________ __________________________________________________________________ _______________ 91 SWOT ANALYSIS Strengths 1. Flexible Products 2. Partners having experience in different markets of the world. 3. Synergy with exiting operations 4. Expertise in the field of insurance 5. Professional management 6. Good Customer service 7. Create a brand name Weakness 1. Low capital base 2. Yet to build strong distribution network 3. Cannot tap rural market Opportunities 1. Untapped market 2. Banks ready to tie up for as a readymade distribution network for a small fee. Threats 1. Large distribution network of LIC 2. Decades of experience and brand name of LIC 3. 5% service tax on investments. 92 CONCLUSION So according to the data available from the survey one can conclude that even though the Unit Linked Insurance Plans are very much popular in Metro and semi cities, the product awareness of ULIP is very low among the people of city and at the same time there is a need to create the different image of the company among the people by any means like advertisement, seminars or meetings. Competition will surely cause the market to grow beyond current rates, create a bigger "pie," and offer additional consumer choices through the introduction of new products, services, and price options. Yet, at the same time, public and private sector companies will be working together to ensure healthy growth and development of the sector. Challenges such as developing a common industry code of conduct, contributing to a common catastrophe reserve fund, and chalking out agreements between insurers to settle claims to the benefit of the consumer will require concerted effort from both sectors. The market is now in an evolving phase where one can expect a lot of actions in coming days. The current impediments for foreign participation – like 26% equity cap on foreign partner, ill defined regulatory role of IRDA (Insurance Regulatory development Authority- the watchdog of the industry) in pension business etc.—are expected to be removed in near future. The early- adopters will then have a clear advantage compared to laggards in gaining the market share and market leadership. The will need to make sure right now that all their infrastructure is in place so that they can reap the benefit of an "unlimited potential." 93 BIBLIOGRAPHY WEBSITES www.iciciprulife.com www.irdaindia.com www.bimaonline.com www.icicibank.com MAGZINES India today Outlook Express Business Today Business and Economy MATERIALS ICICI Prudential literature and brochures LIC literature and brochures 94
"Field Study in Insurance Sector"