2014 Icici Insurance as an Investment Tool
Content
Insurance as a Investment tools with regards to ULIP
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Titles Chapter – I !"ecutive summar# O$%ectives o& the stud# Introduction Purpose o& the stud# Scope o& the stud# Statement o& the pro$lem
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Chapter – II Organi(ation Pro&ile Organi(ation Chart
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Chapter – III *ata collection method Instrumentation techni+ues Learning e"perience O$servation ,ecommendations Conclusion Chapter – I. /uestionnaire 0i$liograph#
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BABASAB PATIL
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Insurance as a Investment tools with regards to ULIP
CONTENTS
Executive Summary Objectives Introduction Purpose of the study Scope of the study Statement of the problem
EXEC TI!ES ""#$%
BABASAB PATIL
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Insurance as a Investment tools with regards to ULIP ICICI Prudential Li&e Insurance Compan# is a %oint venture $etween ICICI 0an12 a premier &inancial powerhouse and prudential plc2 a leading international &inancial services group head+uartered in the United 3ingdom. ICICI Prudential was amongst the &irst private sector insurance companies to $egin operations in *ecem$er '444 a&ter receiving approval &rom Insurance ,egulator# *evelopment 5uthorit# 6I,*57. 5s the people are $ecoming more and more and aware o& their Li&e St#le and Income level. The# need a plan2 which has an optimum $alance $etween their Investment and Savings. The# re+uire an integrated &inancial plan &or investment. The customer re+uires those investment options2 which provide them with &le"i$ilit# and Li+uidit# and ta" $ene&it. I am &ound out tools relates to investment in ULIP at ICICI Prudential li&e insurance. This pro%ect emphasis on 8Insurance as a investment tool with regards to ULIP at ICICI Prudential Li&e Insurance Compan# Ltd2 9u$li:
5 P,O;!CT ,!PO,T ON 8Insurance as a investment tool with regards to ULIP at ICICI Prudential Li&e Insurance Compan# Ltd2 9u$li:
O$%ectives To 1now the importance and awareness o& investment in ULIP To 1now the ris1 perception investment relating to the &inancial management To 1now the elements o& ris1 and returns in ULIP To e"amine the per&ormance o& the plan
INT$O& CTION BABASAB PATIL Page )
Insurance as a Investment tools with regards to ULIP 5s &inance is the li&e$lood &or all economic activities2 one aspect o& &inancial arena2 which pla#s a ver# important role2 is the Insurance. Insurance is the outcome o& <an=s search &or sa&et# and securit#2 and to &ind out wa#s and means to minimi(e the hardship2 which are $e#ond his control. 0ecause o& the economic re&orms introduced $# our government we can see that due to this >lo$ali(ation and privati(ation there is enormous increase in the private sector pla#ers +ueuing in the insurance sector. This entr# o& Private pla#ers has enhanced the competitiveness and /ualit# o& service with man# innovated products. Now in India there are totall# '? pla#ers including 1- Li&e and 1- >eneral Insurance Companies. 5nd Li&e Insurance is one o& the most common &orms o& insurance. ICICI Prudential Li&e Insurance Compan# is an emerging star in the Private pla#ers with the competition $eing >lo$al in nature '$IE( )ISTO$% O( INS $#NCE* The $usiness o& insurance started with marine $usiness. The &irst insurance polic# was issued in 1@?) in !ngland. Some o& the important milestones in the insurance $usiness in India areA 1?1?A The 0ritish introduce to India2 with the esta$lishment o& the Oriental Li&e Insurance Compan# in Calcutta. 1?@4A Non li&e insurance de$uts2 with Triton Insurance compan#. 1?B4A 0om$a# <utual Li&e 5ssurance Societ# is the &irst India owned li&e insurer. 1C4BA Indian <ercantile Insurance is the &irst Indian non li&e insurer. 1C1'A The Indian li&e assurance Companies act enacted to regulate the li&e insurance $usiness. 1C)?A The insurance act2 which &orms the $asis &or most current insurance laws2 replaces
earlier act. 1C@DA Li&e insurance nationali(ed2 government ta1es over '-@ Indian and &oreign insurers
and provident societies. 1CB'A Non Li&e insurance nationali(ed2 >IC set up. 1CC)A <alhotra Committee2 headed $# &ormer 00I governor ,.N. <alhotra2 set up to draw up a $lue print &or insurance sector re&orms. BABASAB PATIL Page -
Insurance as a Investment tools with regards to ULIP 1CC-A <alhotra Committee recommends re entr# &or private pla#ers2 autonom# to PSU insurers. 1CCBA Insurance regulator I,*5 6Insurance ,egulator# and *evelopment 5uthorit#7 set up. '444A I,*5 starts giving licences to private insurers2 ICICI Prudential and 9*EC Standard Li&e &irst private insurers to sell a polic#. '44'A 0an1s were allowed to sell insurance plans2 as TP5s enter the scene2 insurers start settling non li&e claims in the cashless mode.
InsuranceA *e&inition and <eaning
Eunctional de&initionA In the words o& ,.S.Sharma 8Insurance is a Co operative devices to spread the loss caused $# particular ris1 over a num$er o& persons who were e"posed to it and who agree top insure themselves against the ris1: Contractual *e&initionA 5ccording to !.F.Patterson2 8Insurance is a contract $# which one part#2 &or a consideration called a premium2 assures a particular ris1 o& other part# ad promises to pa# to him or his nominee a certain or ascertaina$le sum o& mone# on a speci&ied contingenc#. 5ccording to the U.S Li&e O&&ice <anagement 5ssociation Inc 6LO<572 Li&e Insurance is de&ined as &ollowsA Li&e insurance provides a sum o& mone# i& the person who is insured dies whilst the polic# is in e&&ect Other terms used in relation to insurance and their meanin+* #+ent* The authori(ed representative o& the insurer2 licensed $# the concerned authorities li1e I,*5 to canvass insurance.
'onus* The #earl# share o& polic# holders pro&it declared $# the compan# $ased on its pro&its which gets added to the polic# amount and is pa#a$le upon its maturit#.
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Insurance as a Investment tools with regards to ULIP Claim* The amount entitled to the polic# holder or his nomineeGassignee under a polic# contract in the event o& the happening o& the contingenc# insured against. Insurable Interest* !vidence suggesting &inancial losses due to the occurrence o& the event insured against. Policy* The evidence o& contract $etween the insurer and the insured. 5 stamped sealed and signed document issued $# the insurer to the insured in proo& o& insuring his li&e. Premium* The amount mentioned in the polic# contract to $e paid $# the insurer periodicall# to the insure to 1eep the polic# in &ull &orce
Insurance in Indian (inancial System*
In India insurance is in practice since 1' th centur# as per the records. The &irst li&e insurance compan# to operate in India the Oriental Li&e Insurance compan# was esta$lished in 1?1? in Calcutta. 9owever it was a 0ritish compan#. The &irst Indian Insurance compan#2 the 0om$a# <utual Li&e 5ssurance Societ# started its operation in 1?B1. The Indian Li&e Insurance compan# 5ct was passed in 1C'?.Su$se+uentl#2 $oth o& these 5cts were merged and the insurance 5ct 1C)? was promulgated. Independent India amended the Insurance 5ct in 1C@4 and in 1C@D2 the then &iancH minister o& the nation <r. C * *eshmu1h nationali(ed all insurance companies2 1@- Indian Insurance companies and B@ provident societies. Einall# the li&e insurance Corporation was $orn on 1st Septem$er 1C@D. The stor# o& non li&e insurance in India is no di&&erent. Though Llo#d=s insurance pioneered the general Insurance wa# $ac1 in 1D??2 the &irst non li&e Insurance Compan# set up shop in India was the Triton Insurance compan# o& Calcutta. In 1C4B the &irst Indian general insurer the Indian <ercantile insurance compan# started its operations. The New India 5ssurance Compan# Limited was incorporated in 1C1C. 5&ter independence the India ,einsurance Corporation was set up in 1C@D and in 1C@B the o&&ice o& the controller o& the insurance was constituted. In 1CD?2 that tari&& advisor# committee was set up to regulate the investment o& the pla#ers and &inall# in 1CB'2 the non li&e insurance $usiness in the countr# BABASAB PATIL Page D
Insurance as a Investment tools with regards to ULIP was nationali(ed and the general insurance compan# was &ormed as holding compan# with &our su$sidiaries2 the National Insurance2 Oriental Insurance2 United India Insurance and the new India 5ssurance Compan# Limited. In the same #ear the National Insurance Compan# Limited was amalgamated with '' &oreign and 11 Indian Insurance companies. Thus over a period o& two centuries2 the Indian insurance industr# has gone through the &ull circle. Erom $eing an open competitive mar1et2 it went through nationali(ation and has $een su$se+uentl# li$erali(ed again. 3eeping in mind the national economic and commercial o$%ective o& India the government has set up I,*5 on B th *ecem$er 1CCC. Through which the re&orms process o& the industr# got under wa#. Insurance in Indian (inancial System , Its Importance Insurance industr# is one o& the corner stone o& an# econom# and &inancial S#stem. Insurance industr# contri$utes its ma%or part in increasing the saving and the &und collected is utili(ed in developmental programs. The Einancial sector in our countr# is in the process o& change with the o$%ective o the overall growth o& the econom#. The insurance sector as ever# one 1nows constitutes a ver# important and vital &inancial intermediar# &or the growth o& the econom#. Insurance has $ecome part and parcel o& the &inancial s#stem $ecause itA • • • • • • • • ,educes the uncertaint# o& $usiness loses. Increases $usiness e&&icienc#. Identi&ies 1e# men. !nhances the credit. Ta1es care o& wel&are o& the societ#. Protect the wealth o& the nation. 9elps to attain economic growth. ,educes the in&lation level.
The advanta+es of -ife Insurance * • Li&e insurance is $rought not $ecause someone is going to die2 $ut $ecause someone is going to live. BABASAB PATIL Page B
Insurance as a Investment tools with regards to ULIP • • • • • • • • • • Li&e insurance means peace o& mind. Li&e insurance promises pa#ment o& the &ull sum assured &rom the moment the &irst premium is paid. Li&e insurance encourages regular savings and guards against e"travagances. In most cases li&e insurance possesses a cash value a&ter the &irst three #ears. Li&e insurance removes the worr# o& loo1ing a&ter #our savings. !"perts sa&el# and pro&ita$l# invest #our mone# on #our $ehal& $# e"perts. Li&e insurance guarantees pa#ment in cash and is $ac1ed $# the >overnment o& India. Li&e insurance is a ta" saving product. Li&e insurance is &ree &rom loss2 &rom the&t2 &ire2 misplacement etc. 5 li&e insurance contract is one sided2 i.e.2 alwa#s in &avor o& the insured and his &amil#. One can withdraw &rom the contract an#time2 $ut the compan#=s cannot. Li&e insurance replaces uncertaint# with certaint#. It provide a complete2 $alanced and per&ect hedge against economic threats2 which con&ront all person2 the danger o& living too long or the danger o& d#ing soon.
)o. Insurance /or0s
Suppose there are 1444 person all aged )@ #ears and health# lives. The# are insured &or one #ear against the ris1 o& death. !ach person is insured &or ,s. @42444. i& the past e"perience indicates the - out o& 1444 people die during the #ear2 e"pected amount claimed to $e paid to the &amil# o& - persons would come to ,s. '2442444. the contri$ution to $e paid $# the each o& the 1444 will come to ,s.'44 per #ear. Thus2 all the 1444 persons share loss caused to the - un&ortunate &amilies. CCD persons who survived till 1 #ear have not lost an# thing as the# have secured peace o& mind and a &eeling o& securit# &or their &amil#. Fhile insurance cannot prevent accident or premature death2 it can help2 protect the &amil# o& the deceased against the loss o& income caused $# the o& the main $readwinner. In return &or speci&ied pa#ments2 insurance will provide protection against the insurance o& an uncertain event such as premature death.
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Insurance as a Investment tools with regards to ULIP The $usiness o& insurance compan# called insurer is to $ring together persons who are e"posed to similar ris12 collect contri$ution 6premium7 &rom them on sum e+uita$le $asis and pa# the losses 6claim7 to the un&ortunate &ew who su&&er.
NEE& (O$ T)E INS $#NCEA
Unli1e other avenues o& savings where the amount saved with interest is pa#a$le onl# on maturit#2 insurance plans provide &or pa#ment o& the total sum assured along with a $onus2 i& an#2 on an# eventualit# even $e&ore the maturit# o& the polic#. 5nd another advantage o& insurance is that an insurer can avail loans against the securit# o& the polic# &rom the insurance compan#. !ven $an1s and other &inancial institutions advances loans with insurance policies as a collateral securit#.To provide &or one=s &amil# and perhapsI others in the event o& death2 especiall# premature death. Originall#2 policies were to provide &or short period o& time2 covering temporar# ris1# situations2 such as sea vo#ages. 5s lie insurance $ecame more esta$lished2 it was reali(ed what a use&ul tool it was &or a num$er o& situation2 includingA • Temporar# needsGthreatsA The original purpose o& li&e insurance remains an important element2 namel# providing &or replacement o& income on death etc. • ,egular savingsA Providing &or one=s &amil# and onesel&2 as a medium o long term e"ercise 6through a series o& regular pa#ment o& premiums7. This has $ecome more relevant in recent times as people see1 &inancial independence &rom their &amil#. • InvestmentI It is the insurance that $uilds up the savings o& the societ# and thus sa&eguard the econom# &rom the ravages o& in&lation. Unli1e regular saving products2 investment Products are traditionall# lump sum investments2 where the individual ma1es one time pa#ment. • ,etirementAProvisions &or one=s own later #ears $ecome increasingl# necessar#2 especiall# in a changing cultural and social environment. One can $u# a suita$le insurance polic#2 which will provide periodical pa#ments in one=s old age. /hy should you ta0e insurance
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Insurance as a Investment tools with regards to ULIP Insurance is desired to sa&eguard onesel& and ones &amil# against possi$le losses on account o& ris1 and perils. It provides &inancial compensation &or the losses su&&ered due to the happening o& un&oreseen events. 0# ta1ing li&e insurance a person can have peace o& mind and need not worr# a$out the &inancial conse+uences in case o& an# untimel# death. 5long with the growth o& overall population in the countr#2 crossing the $enchmar1 o& hundred crore2 there gas $een a signi&icant awareness &or the need &or insurance in the other as well as rural segments and even among the lower middle class and illiterate class o& the population.Fe in India have around )4 crore middle class educated and enlightened people who have not reali(ed that insurance is as necessar# as the other $asic necessities o& li&e such as &ood2 shelter2 clothing. The Insurance $e+ulatory and &evelopment #uthority 1I$* ,e&orms in the Insurance sector were initiated with the passage o& the I,*5 0ill in Parliament in *ecem$er 1CCC. The I,*5 since its incorporation as a statutor# $od# in 5pril '444 has &astidiousl# stuc1 to its schedule o& &raming regulations and registering the private sector insurance companies. The other decisions ta1en simultaneousl# to provide the supporting s#stems to the insurance sector and in particular the li&e insurance companies were the launch o& the I,*5=s online service &or issue and renewal o& licenses to agents. The approval o& institutions &or imparting training to agents has also ensured that the insurance companies would have a trained wor1&orce o& insurance agents in place to sell their products2 which are e"pected to $e introduced $# earl# ne"t #ear. Since $eing set up as an independent statutor# $od# the I,*5 has put in a &ramewor1 o& glo$all# compati$le regulations. In the private sector 1' li&e insurance and D general insurance companies have $een registered.
(unctionin+ of the I$&#
• • To e"ercise all the powers and &unctions o& controller o& insurance. Protection o& the interest o& the polic# holders. Page 14
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Insurance as a Investment tools with regards to ULIP • • • • • • • • To issue2 renew2 modi withdraw or suspend certi&icate o& registration. To speci&# re+uisite +uali&ication and training &or insurance intermediaries and agents. To promote and regulate pro&essional organi(ations connected with insurance. To conduct inspectionGinvestigation etc. To prescri$e method o& insurance accounting. To regulate investment o& &unds and margins o& solvenc#. To ad%udicate upon dispute. To conduct inspection and audit o& insurers intermediaries and other organi(ation concerned with insurance. Fith a mission o& A 8 protect the interest o& the polic# holders to regulate promote and ensure orderl# growth o& the insurance industr# and &or matters connected there with or incidental thereto:.
I$&# Enablers*
In the new mar1et set up2 the I,*5=s role that o& an ena$ler. The new insurers will conduct insurance $usiness in India according to the health# norms prescri$ed the I,*5. ,egulations &or all insurance intermediaries will speci&# sales norms. >uidelines &or the code o& conduct &or the surve#ors and loss assessors will help all concerned. !&&icienc# will $e promoted in the conduct o& insurance $usiness. Pro&essional organi(ations connected with insurance $usiness will regulate.The role o& I,*52 $esides regulating the mar1et2 it also intents to develop it. The I,*5 has the tas1 to promote &air competition in hither to monopolistic insurance mar1et. In such a &ast develop scenario were the prospected appears to $e $righter $oth &or insurers and the customers CO"PETITO$S IN(O$"#TION IN INS $#NCE IN& ST$%* a7 LIC Eull# owned $# >overnment. $7 Postal Li&e Insurance. BABASAB PATIL Page 11
Insurance as a Investment tools with regards to ULIP ⇒ Private Players 3 a7 0a%a 5llian( Li&e Insurance Co. Ltd. $7 0irla Sun Li&e Insurance Co. Ltd. c7 9*EC Standard Li&e Insurance Co. Ltd. d7 ICICI Prudential Li&e Insurance Co. Ltd. e7 IN> .#s#a Li&e Insurance Co. Ltd. &7 <a" New Jor1 Li&e Insurance Co. Ltd. g7 <etLi&e India Insurance Co. Pvt. Ltd. h7 3ota1 <ahindra Old <utual Li&e Insurance Co. Ltd. i7 S0I Li&e Insurance Co. Ltd. %7 T5T5 5I> Li&e Insurance Co. Ltd 17 5<P Sanmar 5ssurance Co. Ltd. l7 5viva Li&e Insurance Co. Ltd. m7 Sahara India Li&e Insurance Co. Ltd. n7 Shriram Sunlam. ⇒ Other -i0ely Players , PN0 Li&e Insurance2 ,eliance Li&e Insurance2 5"a 0harti !nterprises. IN&I#N INS $E$ /E'SITE 5llian( 0a%a% li&e allian($a%a%.co.in insurance 5ssurance 0irla Sun Li&e Insurance 5viva Li&e avivindia.com *a$ur India 9*EC ICICI .#s#a 0an1 >ovt o& India ampsanmar.com $irlasunli&e.com P$O"OTE$ 0a%a% 5uto Sanmar >roup 5dit#a 0irla >roup (O$EI4N P$O"OTE$ 5llian( 5> 5<P2 5ustralia Sun Li&e Einancial2 Canada 5viva Plc Standard Li&e Prudential Plc IN> >roup None
Insurance 9*EC Standard d&cinsurance.com Li&e insurance ICICI Prudential icicipruli&e.com Li&e Insurance IN> .#s#a Li&e ingv#s#ali&e.com Insurance Li&e Insurance Licindia.com Corporation <a" New Jor1 ma"new#or1li&e.com <etLi&e India metli&eindia.com BABASAB PATIL
<a" India New Jor1 Li&e ;K3 0an12Pallon%i <etropolitan Li&e Page 1'
Insurance as a Investment tools with regards to ULIP Insurance O< K Co 3ota1 Om1ota1mahindra.com 3ota1 s$ili&e.co.in Insurance mahindra Old <utual Plc Cardi&& 6arm o& 0NP Pari$as7 5merican International >roup
<ahindra Li&e S0I li&e insurance Tata 5I> insurance .
&inance State 0an1 o& India Tata >roup
li&e tata aig.com
INT$O& CTION #'O T -IPA The concept o& ULIP came in to e"istence in 1CD4=s to provide an optimum $alance $etween protection and investment. ULIP distinguishes itsel& through the multiple $ene&its it provides to the polic#holders. These plans are designed with a view to help the customers to utili(e the mar1et opportunities $# investing in the share mar1et2 capital mar1et and at the same time have the &acilit# o& *eath 0ene&it and <aturit# 0ene&it.Unit lin1ed li&e insurance products are those where the $ene&its are e"pressed in terms o& num$er o& units and unit price. The# can $e viewed as a com$ination o& insurance and mutual &unds.The num$er o& units that a customer would get would depend on the unit price when he pa#s his premium. The dail# unit price is $ased on the mar1et value o& the underl#ing assets 6e+uities2 $onds2 government securities2 etc7 and computed &rom the net asset value.The advantage o& unit lin1ed plans is that the# are simple2 clear2 and eas# to understand. 0eing transparent the polic#holder gets the entire upside on the per&ormance o& his &und. 0esides all the advantages the# o&&er to the customers2 unit lin1ed plans also lead to an e&&icient utili(ation o& capital. Unit lin1ed products are e"empted &rom ta" and the# provide li&e insurance. Investors welcome these products as the# provide capital appreciation even as the #ields on government securities have &allen $elow D per cent2 which has made the insurers slash pa#outs. 5ccording to the I,*52 a compan# o&&ering unit lin1ed plans must give the investor an option to choose among de$t2 $alanced and e+uit# &unds. I& #ou choose a de$t plan2 the ma%orit# o& #our premiums will get invested in de$t securities li1e gilts and $onds. I& #ou choose e+uit#2 then a ma%or portion o& #our premiums will $e invested in the e+uit# mar1et. The plan #ou choose would depend on #our ris1 pro&ile and #our investment need.The ideal time to $u# a unit lin1ed plan is when one can e"pect long term growth ahead. This is BABASAB PATIL Page 1)
Insurance as a Investment tools with regards to ULIP especiall# so i& one also $elieves that current mar1et values 6stoc1 valuations7 are relativel# low.So i& #ou are opting &or a plan that invests primaril# in e+uit#2 the $u((ing mar1et could lead to wind&all returns. I& one invests in a unit lin1ed pension plan earl# on2 sa# when one is '@2 one can a&&ord to ta1e the ris1 associated with e+uities2 at least in the planLs initial stages. 9owever2 as one approaches retirement the +uantum o& returns should $e su$ordinated to capital preservation. 5t this stage2 investing in a plan that has an e+uit# tilt ma# not $e a good idea.Considering that unit lin1ed plans are relativel# new launches2 their short histor# does not permit an assessment o& how the# will per&orm in di&&erent phases o& the stoc1 mar1et. !ven i& one views insurance as a long term commitment2 investments $ased on per&ormance over such a short time span ma# not $e appropriate. Simpl# put2 ULIPs wor1 ver# similar to a mutual &und with a li&e cover thrown in. The# have a mandate to invest the premiums in var#ing proportions in gsecs 6government securities72 $onds2 the mone# mar1ets 6call mone#7 and e+uities. The primar# di&&erence $etween conventional savings $ased insurance plans li1e endowment and ULIPs is the investment mandate while ULIPs can invest upto 144M o& the premium in e+uities2 the percentage is much lower 6usuall# not more than 1@M7 in case o& conventional insurance plans. ULIPs are also availa$le in multiple options li1e NaggressiveL ULIPs 6which can invest upto 144M in e+uities72 N$alancedL ULIPs 6which invest -4 D4M in e+uities7 and Nde$tL ULIPs 6which invest onl# in de$t and mone# mar1et instruments7. The e"act e"pense structureG $rea1 up &or ULIPs is as transparent as one would have li1ed. 0roadl# spea1ing2 ULIP e"penses are classi&ied into three ma%or categoriesA 17 <ortalit# chargesA <ortalit# e"penses are charged $# li&e insurance companies &or providing a li&e cover to the individual. The e"penses var# with the age2 sum assured and sum at ris1 &or the individual. There is a direct relation $etween the mortalit# e"penses and the a$ove mentioned &actors. In a ULIP2 the sum at ris1 is an important re&erence point &or the insurance compan#. Put simpl#2 the sum at ris1 is the di&&erence $etween the sum assured and the investment value the individualLs corpus as on a speci&ied date. '7 Sales and administration e"pensesA Insurance companies incur these e"penses &or operational purposes on a regular $asis. The e"penses are recovered &rom the premiums that individuals pa# towards their insurance
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Insurance as a Investment tools with regards to ULIP policies. 5gent commissions2 sales and mar1eting e"penses and the overhead costs incurred to run the insurance $usiness on a da# to da# $asis are e"amples o& such e"penses. )7 Eund management charges 6E<C7A These charges are levied $# the insurance compan# to meet the e"penses incurred on managing the ULIP investments. 5 portion o& ULIP premiums are invested in e+uities2 $onds2 gsecs and mone# mar1et instruments. <anaging these investments incurs a &und management charge2 similar to what mutual &unds incur on their investments. E<Cs di&&er across investment options li1e aggressive2 $alanced and de$t ULIPsI usuall# a higher e+uit# option translates into higher E<C. 5part &rom the three e"pense categories mentioned a$ove2 individuals ma# also have to incur certain e"penses2 which are primaril# NoptionalL in nature the e"penses will $e incurred i& certain choices that are made availa$le to individuals are e"ercised. a7 Switching chargesA Individuals are allowed to switch their ULIP options. Eor e"ample2 an individual can switch his &und mone# &rom 144M e+uities to a $alanced port&olio2 which has sa#2 D4M e+uities and -4M de$t. 9owever2 the compan# ma# charge him a &ee &or NswitchingL. Fhile most li&e insurance companies allow a certain num$er o& &ree switches annuall#2 a switch made over and a$ove this num$er is charged. $7 Top up chargesA ULIPs allow individuals to invest a top up amount. Top up amount is paid in addition to the premium amount &or a particular #ear. Insurance companies deduct a certain percentage &rom the top up amount as charges. These charges are usuall# lower than the regular charges that are deducted &rom the annual premium. c7 Cancellation chargesA Li&e insurance companies lev# cancellation charges i& individuals decide to surrender their policies 6usuall#7 $e&ore three #ears. These charges are levied as a percentage o& the &und value on a particular date. Investment tools of unit lin0ed insurance plans * EUN* N5<! 5SS!!T 5N* ITS 5LLOC5TION O0;!CTI.!S <IN. <5O. POT!NTI5L ,IS3 ,!F5,*
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Insurance as a Investment tools with regards to ULIP ,.I.C.9A ,eturns &rom e+uit# investment in &our t#pes o& industries2 vi(2 resources2 investmentGcapital goods2 consumption and human capital leveraged. Ele"i growth IIA Long term returns &rom an e+uit# port&olio o& large2 mid and small capital companies. <ultiplier IIA Long term capital appreciation &rom e+uit# port&olio. Ele"i 0alanced IIA 0alance o& capital appreciation and sta$le returns &rom an e+uit# 6large2 mid and small capital7 and de$t port&olio. 0alancer IIA 0alance growth and stead# returns &rom an e+uit# and de$t port&olio. Protector IIA 5ccumulate stead# income at a lower ris1 !+uit# and e+uit# ?4M related securities *e$t2 mone# 4M mar1et2 and cash. 144M 9igh '4M
!+uit# and e+uit# ?4M related securities *e$t2 mone# 4M mar1et2 and cash. !+uit# and e+uit# ?4M related securities *e$t2 mone# 4M mar1et2 and cash !+uit# and e+uit# 4M related securities *e$t2 mone# -4M mar1et2 and cash
144M 9igh '4M
144M 9igh '4M D4M <oderate 144M
!+uit# and e+uit# 4M related securities *e$t2 mone# D4M mar1et2 and cash *e$t insurance2 mone# mar1et2 and 144M cash
-4M <oderate 144M
144M
Low
Purpose of the Study*
The main purpose o& the stud# is to &ind out the &actors which are in&luencing the investment tools regards with ULIP at ICICI Prudential and to suggest some strategies which will help the organi(ation.
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Insurance as a Investment tools with regards to ULIP
Scope of the study*
The scope o& the stud# will helps to the peoples &or there choice o& investment. The stud# will help to 1now the e"pectations o& the ULIP.in &uture. The compan# can &ind out the satis&action level o& the ULIP o& their product plans. The scope o& the stud# will help the compan# will &ind the pro$lems o& peoples investing in ULIP.
Statement of the problem* 17 Lac1 o& awareness a$out ULIP &unds in rural areas. ICICI Prudential insurance 5dvisor di&&icult to convince them. '7 Lac1 o& co operation $etween the $ranches.
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Insurance as a Investment tools with regards to ULIP
Contents o Or+ani5ation Profile o Company profile o Or+ani5ation Chart
O$4#NIS#TION P$O(I-E*
ICICI Prudential Li&e Insurance Compan# Limited 6Pthe Compan#=7 a %oint venture 0etween ICICI 0an1 Limited and Prudential plc o& U3 was incorporated on ;ul# '42 '444 as a compan# under the Companies 5ct2 1C@D 6Pthe 5ct=7. The Compan# is licensed $# the Insurance ,egulator# and *evelopment 5uthorit# 6PI,*5=7 &or carr#ing li&e insurance $usiness in India. ICICI Prudential Li&e Insurance Compan# is a %oint venture $etween ICICI 0an12 a premier &inancial powerhouse and prudential plc2 a leading international &inancial services group head+uartered in the United 3ingdom 6U37. The compan# $rings together the local mar1et e"pertise and &inancial strength o& ICICI 0an1 and Prudential=s International li&e insurance e"perience. The compan# was granted a certi&icate o& ,egistration $# the I,*5 on Novem$er '-2 '444 and eighteen da#s later2 issued its &irst polic# on *ecem$er 1'. ICICI Prudential was amongst the &irst private sector insurance companies to $egin operations in *ecem$er '444 a&ter receiving approval &rom Insurance ,egulator# *evelopment 5uthorit# 6I,*57.
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Insurance as a Investment tools with regards to ULIP Erom its earl# da#s2 ICICI Prudential seemed to have the wherewithal &or a large scale $usiness. 0# <arch )12 '44'2 a little over a #ear since its launch2 the compan# had issued 1442444 policies translating into premium income o& appro"imatel# ,s. 12'44 million on a sum assured o& over ,s.') $illion. Fhen the compan# $egan its operations2 the need was to $uild a $rand that was relata$le to2 s#m$oli(ed trust and was easil# recogni(ed and understood. It launched a corporate campaign ICICI Prudential also made using the theme o& PSindoor= to epitomi(e protection2 trust2 togetherness and all that is IndianI endearing itsel& to the masses. The success o& the campaign2 Pthe calling card o& the compan#= saw the $rand awareness scores almost at par with its -4 #ear old competitor. The theme o& protection was also e"tended to su$se+uent product and categor# speci&ic Campaigns –&rom child plans to retirement solutions –which highlight how the compan# will $e with its customers at ever# step o& li&e. Erom da# one2 the compan# has un&linchingl# &ocused on $eing mass mar1et pla#er2 developing products2 creating a distri$ution networ1 and deplo#ing resources that would &urther its goal. 5part &rom ramping up thoroughl# training its advisors2 the compan# has twelve P0anc assurance= partners –the largest in the countr#. It swi&tl# revised and added to its initial range o& products2 pioneering mar1et lin1ed products and pension plans2 to o&&er customers the most &le"i$le li&e insurance policies in the countr#. In Ee$ruar# '44-2 ICICI Prudential increased its capital $ase $# ,s. @44 million2 its ninth capital hi1e2 $ringing the total paid –up e+uit# capital to ,s. D2B@4 million. Fith the authori(ed capital o& the compan# standing at ,s. 1' $illion2 ICICI Prudential continues to have the highest capital $ase amongst all li&e insurers in the countr#. The challenge ICICI Prudential now &aces is to retain its top notch position and continue to deliver the &inest li&e insurance and pension solutions to its ever growing customer $ase. ICICI Prudential=s e+uit# $ase stands at ,s. 11?@ crore with ICICI 0an1 and Prudential plc holding B-M and 'DM sta1e respectivel#. Eor the #ear ended <arch )12 '44D2 the compan# garnered ,s.'2 -1' crore o& weighted new $usiness premium and wrote ?)B2CD) policies. The sum assured in &orce stands at ,s.-@2 ??? crore. The compan# has a networ1 o& over B'2444 advisorsI as well as C $ancasurance partners and over '44 corporate agent and $ro1er tie ups.ICICI Prudential is also the onl# private li&e insurer in India to receive a National Insurer Einancial Strength rating o& 555 6Ind7 &rom Eitch ratings. The 555 rating is the highest
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Insurance as a Investment tools with regards to ULIP credit rating2 and is a clear assurance o& ICICI Prudential=s a$ilit# to meet its o$ligations to customers at the time o& maturit# or claims. Eor the past &ive #ears2 ICICI Prudential has retained its position as the No.1 private insurer in the countr#2 with a wide range o& &le"i$le products that meet the needs o& the Indian customer at ever# step in li&e. 0eginning operations in *ecem$er '4442 ICICI Prudential=s success has $een meteoric2 $ecoming the num$er one private li&e insurer within months o& launch. Toda#2 it has one o& the largest distri$ution networ1s amongst private li&e insurers in India2 with $ranches in @cities. The total num$er o& policies issued stands at more than B?42444 with a total sum assured in e"cess o& ,s.1D4 $illion. ICICI Prudential closed the &inancial #ear ended march )12 '44- with a total received premium income o& ,s. C.C $illionI up 1)@M last #ears total premium income o& ,s.-.'4 $illion. New $usiness premium income shows a 14DM growth at ,s. B.@ $illion2 driven mainl# $# the compan#=s range o& uni+ue unit lin1ed policies and pension plans. The compan#=s retail mar1et share amongst private companies stood at )DM2 ma1ing it clear leader in the segment. To add to its achievements2 in the #ear '44)G4- it was ad%udged <ost Trusted Private Li&e Insurer 6!conomic Times P<ost Trusted 0rand Surve#= $# 5C Nielsen O,> <5,>7. It was also con&erred the POutloo1 <one# 0est Li&e Insurer= award &or the second #ear running. The compan# is also proud to have won Silver at !EEI!S '44) &or its P,etire &rom wor12 not li&e= campaign. Nota$l#2 ICICI Prudential was also short listed to the &inal round &or its PSindoor campaign in !EEI!S '44'. ICICI Prudential=s success is rooted in its philosoph# to alwa#s o&&er the customer a choice. This has $een the driving &orce $ehind its multi channel distri$ution strateg#2 which includes advisors2 $an1s2 direct mar1eting and corporate agents. In &act2 ICICI Prudential was the &irst li&e insurer to invest in multiple channels and o&&er the customer choice and accessI thus reducing dependenc# on an# one channel2 great strides in the retirement solutions and pensions mar1et.The Compan#=s penetration o& the retirement mar1et was driven $# the &ocused approach towards creating awareness through sustained campaignI P,etire &rom
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Insurance as a Investment tools with regards to ULIP wor12 not li&e=. Fithin si" months2 the campaign rewarded ICICI Prudential with an increased share o& ')M o& the total pensions mar1et and B?M amongst private pla#ers. ICICI Prudential Li&eLs capital stands at ,s. )B.B' $illion 6as on <arch2 '44?7 with ICICI 0an1 and Prudential plc holding B-M and 'DM sta1e respectivel#. Eor the #ear ended <arch )12 '44?2 the compan# garnered ,etail New 0usiness Feighted premium o& ,s. D2D?- cores2 registering a growth o& D?M over the last #ear and has underwritten nearl# ) million retail policies during the period. The compan# has assets held over ,s. )42444 cores as on 5pril )42 '44?.ICICI Prudential Li&e is also the onl# private li&e insurer in India to receive a National Insurer Einancial Strength rating o& 555 6Ind7 &rom Eitch ratings. The 555 6Ind7 rating is the highest rating2 and is a clear assurance o& ICICI PrudentialLs a$ilit# to meet its o$ligations to customers at the time o& maturit# or claims. Eor the past seven #ears2 ICICI Prudential Li&e has retained its leadership position in the li&e insurance industr# with a wide range o& &le"i$le products that meet the needs o& the Indian customer at ever# step in li&e.
Company Profile*
ICICI Prudential Li&e Insurance Compan# is a %oint venture $etween ICICI 0an12 a premier &inancial powerhouse and Prudential plc2 a leading international &inancial services group head+uartered in the United 3ingdom. ICICI Prudential was amongst the &irst private sector insurance companies to $egin operations in *ecem$er '444 a&ter receiving approval &rom Insurance ,egulator# *evelopment 5uthorit# 6I,*57. !ision* To ma1e ICICI Prudential the dominant Li&e and Pensions pla#er $uilt on trust $# world class people and service. .ision2 <ission2 and /ualit# Polic# !ision*
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Insurance as a Investment tools with regards to ULIP To be the dominant Life and Pension player built on trust by world class people and service. This the# hope to achieve $#A • • • • • .alues • Customer EirstA Own CustomerI deliver the promise o 3eep customer interest in the centre o& all decisions. o Promise what #ou can2 deliver it to &inish. o Proactivel# see1 .oice o& Customer and act on it. • 0oundar# lessA Never sa# PIts not m# %o$= o O&&er help and support across &unctions to ensure $usiness success. o See1 and share ideas &reel# o ,ecogni(e and respect internal customers. o Understand and value contri$utions &rom colleagues. • OwnershipA I& it is to $e2 it is up to me o Ta1e responsi$ilit# and see tas1s through to completion. o Own mista1es2 learn &rom mista1es. o Pursue goals relentlessl#2 never give up. o 0e a team pla#er2 ta1e ownership &or team per&ormance. • PassionA 0oundless energ# and enthusiasm o !"hi$it PFinning Instinct=. o *emonstrate speed and urgenc# &or achieving results. o Challenge status +uo and do things di&&erentl#. o Nurture and motivate team mem$ers to reach &ull potential. • Integrit#A 0e honest and &air in what #ou sa# and do Page '' Understanding the needs o& customers and o&&ering them superior products and service Leveraging technolog# service customers +uic1l#2 e&&icientl# and convenientl# *eveloping and implementing super ris1 management and investment strategies to o&&er sustaina$le and sta$le returns to their polic#holders Providing an ena$ling environment to &oster growth and learning &or their emplo#ees 5nd a$ove all2 $uilding transparenc# in all their dealings.
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Insurance as a Investment tools with regards to ULIP o Practice what #ou preach o Stand up honestl# and &earlessl# &or what is right o 5ct in a consistent and e+uita$le manner o Thin1 and act &or long term impact.
ICICI Prudential -ife Insurance ICICI Prudential Li&e Insurance Compan# is a %oint venture $etween ICICI 0an12 which is one o& IndiaLs &oremost &inancial services companies2 and Prudential plc2 which is a leading international &inancial services group head+uartered in the United 3ingdom. ICICI Prudential $egan the operations in *ecem$er '444. Toda#2 this compan# has over '144 $ranches2 which include 1211D micro o&&ices2 over 'C42444 advisors and 1? $anc assurance partners. ICICI Prudential Li&e Insurance Compan# is the &irst li&e insurer in India that received a National Insurer Einancial Strength rating o& 555 6Ind7 &rom Eitch ratings. ICICI Prudential has $een voted as IndiaLs <ost Trusted Private Li&e Insurer &or three consecutive #ears. ICICI Prudential Li&e Insurance Compan# has various insurance plans that have $een designed &or di&&erent individuals2 as ever# individual has di&&erent insurance needs. >iven $elow is a list o& plans provided $# ICICI Prudential Li&e Insurance Compan#A ST5>!S IN POLICJ ISSU5NC!
Proposal 5 Proposal Stage is the Eirst stage $e&ore the polic# is issued at COPS. 5t this stage2 the application &orm is received $# COPS2 $ut it is pending &or issuance due to &urther clari&ications re+uired &rom the customer.
Login 5 proposal2 which is complete i.e.2 dul# &illed with all necessar# documents BABASAB PATIL Page ')
Insurance as a Investment tools with regards to ULIP attached to it K accepted $# the 0ranch ops2 is called a Login ,e%ect 5n 5pplication gets re%ected at the 0ranch Ops level due to necessar# details not &illed in the &orm or necessar# documents not su$mitted are a ,e%ect. It is then sent $ac1 to the 5dvisor &or completion.
Issuance Issuance means a polic# that is issued to the Customer $# Central Ops.
*ecline Status Fhen a customer re&uses to ta1e a polic# post login $ut $e&ore Issuance is called a *ecline
Cancellation Fhen the che+ue given $# the customer $ounces2 it amounts to cancellation o& the polic#.
Lapse 5 polic# &or which the Customer &ails to pa# su$se+uent premiums is a Lapsed Polic#.
Eree loo1 Post issuance o& the polic#2 the polic#holder has the option to turn down the polic# within 1@ da#s &rom the date o& issuance. This period o& 1@ da#s is called Eree loo1 Period.
Surrender Fhen a customer wants to discontinue with the polic# it is called Surrender.
Top Ten thin+s to 0no. about -ife Insurance BABASAB PATIL Page '-
Insurance as a Investment tools with regards to ULIP Fe all recogni(e the importance o& li&e insurance. 5&ter all2 we want to ma1e sure that our loved ones are ta1en care o& when we die. 0ut $e&ore #ou run out and purchase a polic#2 do some research ahead o& time. That wa#2 #ouLll $e sure to get the $est possi$le coverage at the right price. 9ere are some help&ul tips to get #ou startedA Shop around Fhen it comes to li&e insurance2 it pa#s to shop around $ecause premiums can var# widel#. 5nd than1s to the Internet2 itLs now easier than ever. Tr# out one o& the man# insurance we$sites that can provide #ou with instant +uotes. <a1e sure the we$site #ou shop &rom ta1es into consideration the &actors in #our medical histor# that can a&&ect the premiums. Never buy more covera+e than you need The 1e# to purchasing the right amount o& li&e insurance is to have %ust enough coverage to meet #our needs. I& #ou have more li&e insurance than #ou need2 #ouLll $e pa#ing unnecessaril# &or higher premiums. On the other hand2 itLs important not to have too little coverage2 resulting in #ou $eing underinsured. The healthier you are6 the better the rates ItLs true – health# people get $etter rates on li&e insurance. Jou will $e as1ed to pa# a higher rate &or an#thing that shortens #our li&e e"pectanc# 6e.g.2 i& #ou smo1e2 ta1e medications regularl#2 are overweight2 have a $ad driving record7. 'uy sooner rather than later I& #ouLve $een putting o&& purchasing li&e insurance $ecause #ou donLt want to pa# the premiums2 #ou ma# $e doing #oursel& a disservice in the long run. The #ounger #ou are when #ou purchase li&e insurance2 the lower #our premiums will $e. $eali5e the importance of periodically revie.in+ your covera+e 5n# li&e change signals the need &or a review o& #our overall &inancial plan. Fhen it comes to li&e insurance coverage2 #ouLll want to ma1e sure that this ma%or li&e event 6e.g.2 $irth o& a child2 children are grown7 wonLt leave #ou underinsured or over insured. %ou don7t necessarily have to pay a commission One o& the reasons &or higher premiums is that most li&e insurance policies pa# BABASAB PATIL Page '@
Insurance as a Investment tools with regards to ULIP commissions to the agentG$ro1er. 9owever2 #ou ma# $e a$le to purchase a no load polic# through an insurer that sells no load policies directl# to consumers. %ou may be payin+ more for monthly premium payments Jou ma# not reali(e it2 $ut #ou ma# $e pa#ing more &or #our li&e insurance i& #ou pa# #our premium in monthl# installments. <an# insurance companies charge e"tra &ees i& #ou ma1e monthl# premium pa#ments instead o& pa#ing the annual premium. &on7t rely solely on the life insurance offered by your employer <an# emplo#ers o&&er their emplo#ees some sort o& group li&e insurance. 0ut this amount o& coverage is usuall# not enough to ade+uatel# meet #our li&e insurance needs. In addition2 group li&e insurance policies are not porta$le2 meaning that i& #ou leave #our %o$2 #ou canLt ta1e #our li&e insurance coverage with #ou. Tell the .hole truth and nothin+ but the truth I& #ouLre thin1ing a$out l#ing on #our insurance application2 thin1 again. I& #our insurance compan# &inds out that #ou lied a$out a health related condition or #our li&est#le 6e.g.2 smo1ing ha$it72 the# ma# $e a$le to terminate #our coverage.
'uyin+ more is sometimes cheaper Li&e insurance usuall# costs less per thousand dollars once #ou get into higher coverage amounts 6e.g.2 Q'@424447. I& the num$ers wor1 out2 #ou ma# $e a$le to pa# a lower premium while increasing #our coverage ICICI 'an0 ICICI 0an1 6NJS!AI0N7 is India=s second largest $an1 and largest private sector $an1 with over @4 #ears o& &inancial e"perience and with assets o& ,s. 1?1'.'B $illion as on )4th ;une2 '44@. ICICI 0an1 o&&ers a wide range o& $an1ing products and &inancial services to corporate and retail customers through a variet# o& deliver# channels and through its speciali(ed su$sidiaries and a&&iliates in the areas o& investment $an1ing2 li&e and non li&e insurance2 venture capital and asset management. ICICI 0an1 is a leading pla#er in the retail $an1ing
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Insurance as a Investment tools with regards to ULIP mar1et and has over 1) million retail customer accounts. The 0an1 has a networ1 o& over @B4 $ranches and e"tension counters2 and '2444 5T<s. Prudential plc !sta$lished in London in 1?-?2 Prudential plc2 through its $usinesses in the U3 and !urope2 the US and 5sia2 provides retail &inancial services products and services to more than 1D million customers2 polic#holder and unit holders worldwide. 5s o& ;une )42 '44-2 the compan# had over USQ)44 $illion in &unds under management. Prudential has $rought to mar1et an integrated range o& &inancial services products that now includes li&e assurance2 pensions2 mutual &unds2 $an1ing2 investment management and general insurance. In 5sia2 Prudential is the leading !uropean li&e insurance compan# with a vast networ1 o& 'li&e and mutual &und operations in twelve countries China2 9ong 3ong2 India2 Indonesia2
;apan2 3orea2 <ala#sia2 the Philippines2 Singapore2 Taiwan2 Thailand and .ietnam.
"ana+ement Profile* &irectors
3. .. 3amath2 Chairman BABASAB PATIL
Investment Committee
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Insurance as a Investment tools with regards to ULIP <ar1 Nor$om Lalita *. >upte 3alpana <orparia Chanda 3ochhar 9. T. Phong <. P. <odi ,. Nara#anan 3e1i *adiseth Shi1ha Sharma2 <anaging *irector N. S. 3annan2 !"ecutive *irector Sandeep 0atra2 Chie& Einancial O&&icer K Compan# Secretar# >overnance Committee Lalita *. >upte 9. T. Phong Shi1ha Sharma Lalita Chairperson 9. T. Phong Shi1ha Sharma N. S. 3annan .. ,a%agopalan Sandeep 0atra Puneet Nanda *. >upte2
$is0
"ana+ement
8
#udit Executive Committee
Shi1ha Sharma N. S. 3annan .. ,a%agopalan Sandeep 0atra 5nita Pai
Committee
<. P. <odi2 Chairman 9. T. Phong 3alpana <orparia
4rievance $edressal Committee ,. Nara#anan2 Chairman .. ,a%agopalan Sandeep 0atra 5nita Pai
9oint #uditors S. ,. 0atli$oi K Co. Chartered 5ccountants 9ari$ha1ti K Co. Chartered 5ccountants
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Insurance as a Investment tools with regards to ULIP
Promoterss
ICICI 0an1 Limited 6NJS!AI0N7 is IndiaLs largest private sector $an1 and the second largest $an1 in the countr# with consolidated total assets o& a$out USQ C@ $illion as o& <arch )12 '44C. ICICI 0an1=s su$sidiaries include India=s leading private sector insurance companies and among its largest securities $ro1erage &irms2 mutual &unds and private e+uit# &irms. ICICI 0an1=s presence currentl# spans 1C countries2 including India. Prudential !sta$lished in London in 1?-?2 Prudential plc is a leading internal retail &inancial services group with signi&icant operations in 5sia2 the US and the U3. Prudential has $een writing protection and savings insurance &or over 1D4 #ears2 and toda# has more than '1 million customers worldwide and over '-C $illion in assets under management 6as o& *ecem$er )12 '44?7. In 5sia2 Prudential is the leading !urope $ased li&e insurer with operations in China2 9ong 3ong2 India2 Indonesia2 ;apan2 3orea2 <ala#sia2 the Philippines2 Singapore2 Taiwan2 Thailand2 and .ietnam. Prudential is one o& the largest asset management companies in terms o& overall assets sourced in 5sia e" %apan2 with R)D.? $illion &unds under management 6as o& *ecem$er )12 '44?7 and operations in ten mar1ets including China2 9ong 3ong2 India2 ;apan2 3orea2 <ala#sia2 Singapore2 Taiwan2 .ietnam and United 5ra$ !mirates. The Compan# ICICI Prudential Li&e Insurance Compan# is a %oint venture $etween ICICI 0an12 a premier &inancial powerhouse2 and Prudential plc2 a leading international &inancial services group head+uartered in the United 3ingdom. ICICI Prudential was amongst the &irst private sector insurance companies to $egin operations in *ecem$er '444 a&ter receiving approval &rom Insurance ,egulator# *evelopment 5uthorit# 6I,*57. ICICI Prudential Li&eLs capital stands at ,s. -2B?4 crores 6as o& <arch2 '44C7 with ICICI 0an1 and Prudential plc holding B-M and 'DM sta1e respectivel#. Eor the period 5pril 12 '44? to <arch )12 '44C2 the compan# has posted a growth o& 1)M2 garnering total received premium 6new $usiness S renewal7 o& ,s 1@2)@D crores as against ,s 1)2@D) crores in BABASAB PATIL Page 'C
Insurance as a Investment tools with regards to ULIP EJ'44? and has underwritten over C million policies since inception. The compan# has assets held over ,s. )'2444 crores as on <arch2 '44C. ICICI Prudential Li&e is also the onl# private li&e insurer in India to receive a National Insurer Einancial Strength rating o& 555 6Ind7 &rom Eitch ratings. The 555 6Ind7 rating is the highest rating2 and is a clear assurance o& ICICI PrudentialLs a$ilit# to meet its o$ligations to customers at the time o& maturit# or claims. Eor the past eight #ears2 ICICI Prudential Li&e has retained its leadership position in the li&e insurance industr# with a wide range o& &le"i$le products that meet the needs o& the Indian customer at ever# step in li&e. INS $#NCE P$O& CT #N& SE$!ICE* ICICI Prudential=s ultimate promise is &inancial securit#. 5 strong $rand certainl# $oosts sale2 $ut without customer &riendl#2 innovative products2 even the $est $rand would not last long. ICICI Prudential=s product range has $een developed on the understanding that di&&erent people have their own sets o& needs at various stages o& their lives. It has thus $uilt a &le"i$le port&olio o& products that can $e customi(ed to cater to var#ing needs o& people at each stage2 and thus ensure protection in ever# step o& li&e. The compan#=s philosoph# has $een to help customers understand their &inancial needs and wor1 closel# with them to customi(e a product that would meet. 5dvisors can o&&er a complete range o& products – Savings plans2 Child plans2 <ar1et lin1ed plans2 Protection plans2 and ,etirement plans – and tailor a &le"i$le solution to meet customers= changing needs at ever# stage o& li&e. In &act2 ICICI Prudential was the &irst to un $undle product $ene&its2 pioneering the concept o& Priders= and soon a&ter introduce comprehensive mar1et lin1ed and retirement plans. ICICI Prudential has launched a hand&ul o& products that are anal#(ed $elowA ICICI PrudentialLs li&e insurance products ma# $e loosel# categori(ed under three &ormsA pure li&e insurance products without an investment angle to themI a product that is a mi" o& a cumulative investment scheme and an insurance productI and2 &inall#2 standard products such as mone# $ac1 and endowment policies.
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Insurance as a Investment tools with regards to ULIP
-ife Insurance Plans !ducation Insurance Plans Smart 3id New Unit lin1ed ,egular Premium Smart 3id New Unit lin1ed Single Premium Smart 3id ,egular Premium Fealth Creation Plans Fealth 5dvantage Li&eStage 5ssure Li&eTime >old Li&eLin1 Super Li&eStage ,P Premium >uarantee Plans InvestShield Li&e New InvestShield Cash0an1
Protection Plans Pure Protect Li&e >uard Save LnL Protect Cash0a1 9ome 5ssure ,etirement Solutions Li&e Stage Pension Li&eTime Super Pension Li&eLin1 Super Pension BABASAB PATIL Page )1
Insurance as a Investment tools with regards to ULIP EoreverLi&e Plan Immediate 5nnuit# 9ealth Coverage Plans 9ealth Saver <edi 5ssure 9ospital Care Crisis Cover Cancer Care *ia$etes Care 5ctive *ia$etes 5ssure ICICI Pru >roup Solutions 5dvantage >roup Super 5nnuation >roup >ratuit# Plan 5nnuit# Solutions >roup Term Insurance Plan >roup Term Insurance in lieu o& !*LI ,ural Plans ICICI Pru Sura1sha ICICI Pru Sura1sha 3avach <icro Insurance Plans ICICI Pru Sarv ;ana Plan P$O& CTS* Insurance Solutions &or Individuals ICICI Prudential Li&e Insurance o&&ers a range o& innovative2 customer centric products that BABASAB PATIL Page )'
Insurance as a Investment tools with regards to ULIP meet the needs o& customers at ever# li&e stage. Its products can $e enhanced with up to riders2 to create a customi(ed solution &or each polic#holder. Li&e Time >old is a unit lin1ed plan which o&&ers potentiall# higher returns over the long term with &le"i$le investment options to help #ou achieve #our goals. It o&&ers ? &und options Preserver2 Protector2 ,eturn >uarantee Eund2 0alancer2 Ele"i 0alanced
<ultiplier2 ,.I.C.9 and Ele"i >rowth. Li&e Stage ,P is unit lin1ed plan that provides #ou with an option o& li&ec#cle $ased port&olio strateg# that continuousl# re distri$utes #our mone# across various asset classes $ased on the customer=s pro&ile2 helping him achieve his desired &inancial goals. Li&eLin1 Super is a single premium unit lin1ed insurance which o&&ers attractive premium allocation along with the opportunit# to en%o# potentiall# high returns over the long term2 without compromising on the protection o& #our &amil#. Invest Shield Li&e New is a unit lin1ed plan that provides premium guarantee and allows the customer to en%o# the $en&its o& potentiall# higher returns while guaranteeing him that he will get $ac1 atleast all the premiums paid $# him2 while providing protection to #our &amil# with a li&e insurance cover. Invest Shield Cash$a1 is a unit lin1ed plan that provides premium guarantee while maintaing a $alance $etween return2 sa&et# K li+uidit#. Fealth 5dvantage s a uni+ue whole li&e single premium unit lin1ed plan that provides long term coverage upto the age o& B4 #ears and provides #ou the option to s#stematicall# withdraw #our mone#. Li&e Stage 5ssure a unit lin1ed insurance plan that provides >uaranteed <aturit# 5ddition o& 144M -@4M o& &irst #ear premium $ased on the term and num$er o& premiums paid2 with the additional advantage o& a li&ec#cle $ased port&olio strateg# that allocates the investor=s mone# across various asset classes $ased on his age and ris1 appetite BABASAB PATIL Page ))
Insurance as a Investment tools with regards to ULIP Protection Solutions Pure Protect is a &le"i$le and a&&orda$le term product2 with which #ou can ensure #our li&e and provide total securit# &or #our &amil# in case o& an un&ortunate event. Li&e >uard is a protection plan2 which o&&ers li&e cover at low cost. It is availa$le in ' options –level term assurance with return o& premium K single premium. 9ome 5ssure is a mortgage reducing term assurance plan designed speci&icall# to help customers cover their home loans in a simple and cost e&&ective manner Child Plans Smart 3id New UL,P The polic# is designed to provide mone# at 1e# educational milestones in the childLs li&e. Smart3id plans are also ,etirement Solutions Eorever Li&e is a traditional retirement product that o&&ers guaranteed returns &or the &irst - #ears. Li&e Time Super Pension is a regular premium unit lin1ed pension plan that helps one accumulate over the long term and o&&ers @ annuit# options 6li&e annuit#2 li&e annuit# with return o& purchase price2 %oint li&e last survivor annuit# with return o& purchase price2 li&e annuit# guaranteed &or @214 and 1@ #ears K &or li&e therea&ter2 %oint li&e2 last survivor annuit# without return o& purchase price7 at the time o& retirement. Li&e Stage Pension is a regular premium unit lin1ed pension plan that provides #ou with a uni+ue li&ec#cle $ased strateg# that continuousl# re distri$utes #our mone# across various asset classes $ased on #our age and ris1 pro&ile. Li&e Lin1 Super Pension is a single premium unit lin1ed pension plan. Immediate 5nnuit# is a single premium annuit# product that guarantees income &or li&e at the time o& retirement. It o&&ers the $ene&it o& @ pa#out options.
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Insurance as a Investment tools with regards to ULIP )ealth Solutions 9ospital Care is a &i"ed $ene&it plan covering various stages o& treatment – hospitali(ation2 ICU2 procedures K recuperating allowance. It covers a range o& medical conditions 6C44 surgeries7 and has a long term guaranteed coverage upto '4 #ears. Crisis Cover is a )D4 degree product that will provide long term coverage against )@ critical illnesses2 total and permanent disa$ilit#2 and death. *ia$etes Care 5ctive is a long term insurance polic# created &or individuals with T#pe II dia$etes and pre dia$etes. It o&&ers long term 6upto '4 #ears7 control over dia$etes through a speciall# designed Fellness Programme including regular health chec1ups and a *ia$etes Coach to &acilitate dia$etes management. It also provides #ou coverage against seven ma%or critical illnesses. Cancer Care is a regular premium plan that pa#s cash $ene&it on the diagnosis as well as at di&&erent stages in the treatment o& various cancer conditions. <edical 5ssure is a health insurance polic# that provides assured insura$ilit# till age B@ #ears2 assured coverage &or accepted pre e"isting illnesses a&ter ' #ears and an assured price &or ) #ears. 9ealth Saver provides comprehensive hospitali(ation cover and reim$urses all other medical e"penses $# $uilding a health &und. availa$le in traditional &orm (lexible $ider Options ICICI Prudential Li&e o&&ers &le"i$le riders2 which can $e added to the 0asic polic# at a marginal cost2 depending on the speci&ic needs o& The customer 5ccident K disa$ilit# $ene&itA I& death occurs as the result o& an accident during the term o& the polic#2 the $ene&iciar# receives an additional amount e+ual to the rider sum assured under the polic#. I& an accident results in total and permanent disa$ilit#2 14M o& rider sum assured will $e paid each #ear2 &rom the end o& the 1st #ear a&ter the disa$ilit# date &or the BABASAB PATIL Page )@
Insurance as a Investment tools with regards to ULIP remainder o& the $ase polic# term or 14 #ears2 whichever is lesser. I& the death occurs while traveling in an authori(ed mass transport vehicle2 the $ene&iciar# will $e entitled to twice the sum assured as additional $ene&it. Critical illness $ene&itA Critical Illness 0ene&it ,ider provides protection against C critical illnesses to the polic#holder when attached to the $asic plan. Faiver o& premiumA On total and permanent disa$lement due to accident all &uture premiums under the $ase plan will $e waived till the end o& the term o& the rider or death o& assured li&e2 i& earlier. Income $ene&it riderA In case o& death o& the Li&e 5ssured during the term o& the polic#2 14M o& the Sum 5ssured is paid annuall# to the nominee on each polic# anniversar# till the maturit# o& the rider.
#/#$&S #N& #C)IE!E"ENTS
ICICI Pru Life ranked as the Most Trusted Pvt Life Insurance brand in the Brand Equity "Most Trusted Brands 2009" survey
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Insurance as a Investment tools with regards to ULIP
ICICI Prudentia Life !on a "o d a!ard for #bout$LIP%&co' and (ea th %aver ca')ai*n+ innovation a!ard for !!!&ta,*uru0-.09&co' and a si ver a!ard for its Insurance yo*a ca')ai*n at the ICICI "rou) Marketin* E,ce ence a!ard&
Confederation of Indian Industry /CII0 . 1estern 2e*ion recent y a!arded ICICI Prudentia Life a 3Co''endation for %tron* Co''it'ent to (2 E,ce ence 200-3 at the CII (2 %u''it 200-&
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Insurance as a Investment tools with regards to ULIP
ICICI Prudentia Life Insurance !as a!arded !ith the coveted 3IC#I #!ard for E,ce ence in 4inancia 2e)ortin*3 by the Institute of Chartered #ccountants of India /IC#I0 for the financia year ended March 56+ 200-&
ICICI Prudentia Life !as a!arded the Life Insurance Co')any of the 7ear at the62th #sia Insurance Industry #!ards 200-&
ICICI Prudentia Life !as a!arded !ith t!o Bron8e Effie3s in the services cate*ory for its Cor)orate ca')ai*n and 2etire'ent 9u'ber ca')ai*n
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Insurance as a Investment tools with regards to ULIP
ICICI Prudentia Life Insurance !on the a!ard for the Best Life Insurer. 2unner u) at the :ut ook Money ; 9<T= Profit #!ards 200-
ICICI Prudentia Life !as a!arded the %#P #CE 200- Best Business :b>ects #!ard for its IT )ractices
ICICI Prudentia Life !on the #!ard for Brand E,ce ence in the Bankin* and 4inancia services cate*ory at the #sia Brand Con*ress 200-
Ms& %hikha %har'a+ M< ; CE:+ ICICI Prudentia Life Insurance Co& Ltd& !as ad>ud*ed the Business!o'an of the year at The Econo'ic Ti'es #!ards for
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Insurance as a Investment tools with regards to ULIP
Cor)orate E,ce ence+ 200?.0-&
ICICI Prudential Li&e won the U3 Trade K Investment India 0usiness 5wards '44? in the 0usiness Partnership 5ward Large Compan# categor#
ICICI Prudential Li&e won the ICICI >roup <ar1eting !"cellence 5ward '44? in three 1e# categories &or its mar1eting initiatives
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Insurance as a Investment tools with regards to ULIP
ICICI Prudential Li&e was awarded the IN*J=s 5ward &or !"cellence in <ass Communication in the categor# o& <ost Creative 5dvertisement Television
India3s Most Custo'er 2es)onsive Insurance Co')any& #vaya " oba Connect . Econo'ic Ti'es& Custo'er 2es)onsiveness #!ards+ 200?
Ms& %hikha %har'a+ M< ; CE:+ ICICI Prudentia Life Insurance !as ad>ud*ed as one of the @0 Most Po!erfu 1o'en in Business by The 4inancia E,)ress&
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Insurance as a Investment tools with regards to ULIP
Ms& %hikha %har'a+ M< ; CE:+ ICICI Prudentia Life Insurance !as ad>ud*ed the Entre)reneur of the 7ear.Mana*er at the Ernst and 7oun* Entre)reneur #!ards 200?
Ms& %hikha %har'a+ M< ; CE:+ ICICI Prudentia Life Insurance !as a!arded the :utstandin* Business!o'an of the 7ear at C9BC T=6-3s India Business Leader #!ards 200?
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Insurance as a Investment tools with regards to ULIP
ICICI Prudentia Life Insurance !on the a!ard for the Best Life Insurer. 2unner u) at the :ut ook Money ; 9<T= Profit #!ards 200?
ICICI Prudentia LifeAs+ retire'ent so utions ca')ai*n for the year 200B.0? !as a!arded the Bron8e Effy tro)hy in the services cate*ory& It a so !on the Brand Equity Bravery #!ard 200?+ instituted by #d c ub&
ICICI Prudentia LifeAs !ebsite+ !!!&icici)ru ife&co' !as a!arded the best !ebsite a'on* )rivate ife insurers at the 1eb 6- and 4rost ; %u ivan "enius of the 1eb #!ards 200? for co''endab e !ork in the on ine&
Innovation #!ard for aunchin* <iabetes Care C Prudence #!ard 200B& Peo) e #!ard for e,ce ence in trainin* and )eo) e deve o)'ent . Prudence #!ard 200B
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Insurance as a Investment tools with regards to ULIP
India3s Most Custo'er 2es)onsive Insurance Co')any& #vaya " oba Connect . Econo'ic Ti'es& Custo'er 2es)onsiveness #!ards
Most Trusted Private Life Insurer& The Econo'ic Ti'es . # C 9ie sen %urvey of Most Trusted Brands C 2005+ 200D and 200@
Prudence Custo'er Centricity #!ard 200D ; 200@& Prudentia Cor)oration #sia
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Insurance as a Investment tools with regards to ULIP
0est Li&e Insurer '44). Outloo1 <one# 5wards '44) K '44-
I<< 5ward &or !"cellence. Institute o& <ar1eting K <anagement
Organi(ation with Innovative 9, Practices Indira >roup o& Institutes
Super$rand '44) 4-
Organi(ation with Innovative 9, Practices 5sia Paci&ic 9 , Congress 5wards &or 9, BABASAB PATIL Page -@
Insurance as a Investment tools with regards to ULIP
!"cellence
Silver !&&ie &or !&&ectiveness o& the P,etire &rom For1 not li&e= advertising campaign !&&ies '44)
Recognitions
ICICI Prudential Li&e was recogni(ed as the most trusted $rand amongst private li&e insurers in the !conomic Times <ost Trusted 0rand surve# '44?.
I<< 5ward &or !"cellence. Institute o& <ar1eting K <anagement
Organi(ation with Innovative 9, Practices. Indira >roup o& Institutes
:r*ani8ation !ith Innovative (2 Practices& #sia.Pacific ( 2 Con*ress #!ards for (2 E,ce ence #chievements
0eginning operations in *ecem$er '4442 ICICI Prudential=s success has $een meteoric2 $ecoming the num$er one private li&e insurer within months o& launch. Toda#2 it has one o& the largest distri$ution networ1s amongst private li&e insurers in India2 with $ranches in @-
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Insurance as a Investment tools with regards to ULIP cities. The total num$er o& policies issued stands at more than B?42444 with a total sum assured in e"cess o& ,s.1D4 $illion. ICICI Prudential closed the &inancial #ear ended march )12 '44- with a total received premium income o& ,s. C.C $illionI up 1)@M last #ears total premium income o& ,s.-.'4 $illion. New $usiness premium income shows a 14DM growth at ,s. B.@ $illion2 driven mainl# $# the compan#=s range o& uni+ue unit lin1ed policies and pension plans. The compan#=s retail mar1et share amongst private companies stood at )DM2 ma1ing it clear leader in the segment. To add to its achievements2 in the #ear '44)G4- it was ad%udged <ost Trusted Private Li&e Insurer 6!conomic Times P<ost Trusted 0rand Surve#= $# 5CNeilsen O,> <5,>7. It was also con&erred the POutloo1 <one# 0est Li&e Insurer= award &or the second #ear running. The compan# is also proud to have won Silver at !EEI!S '44) &or its P,etire &rom wor12 not li&e= campaign. Nota$l#2 ICICI Prudential was also short listed to the &inal round &or its PSindoor campaign in !EEI!S '44'. In 3eeping with its $elie& that a happ# customer is the $est endorsement2 ICICI Prudential has em$raced the PSIO SI><5= approach to +ualit#2 an e"ercise that $egins and ends with the customer &rom capturing his voice to measuring and responding to his e"periences. This initiative is currentl# helping the compan# improve processes2 turnaround times and customer satis&action levels. 5nother Novel introduction is the ICICI Prudential Li&est#le ,ewards Clu$2 India=s &irst rewards programme &or Li&e 5dvisorsI it allows ICICI Prudential 5dvisors to redeem points &or items ranging &rom 1itchenware to gold2 white goods2 and even international holida#s.
Or+ani5ational chart*
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Samplin+ o &ata collection method o Instrumentation techni:ues o -earnin+ experience
S#"P-IN4*3
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Insurance as a Investment tools with regards to ULIP Sample si(e Sampling <ethod Sample Plan Sample Unit A 144 respondents A ,andom sampling A Personal Interview A ,espondents in 9u$li cit#
Surve# conducted on >eographic $ases. !ver# decision poses uni+ue needs &or in&ormation2 and relevant strategies can $e developed $ased on the in&ormation gathered through research. ,esearch is the s#stematic o$%ective and e"haustive search &or and stud# o& &acts relevant to the pro$lem. ,esearch design means the &ramewor1 o& stud# that leads to the collection and anal#sis o& data. It is a conceptual structure with in which research is conducted. It &acilitates smooth sailing o& various research operations to ma1e the research as e&&ective as possi$le. The stud# was conducted as an e"plorator# sampling surve# method to collect primar# and secondar# data.
&#T# SO $CE*
P,I<5,J SOU,C! OE *5T5A Primar# data are those collected $# the investigator himsel& &or the &irst time and thus the# are original in character2 the# are collected &or a particular purpose. 5 well structured +uestionnaire was personall# administrated to the selected sample to collect the primar# data. S!CON*5,J SOU,C! OE *5T5A Secondar# data are those2 which have alread# $een collected $# some other persons &or their purpose and pu$lished. Secondar# data are usuall# in the shape o& &inished products. Two t#pes o& secondar# data were collected &or the preparation o& the pro%ect wor1A Internal *ata was generated &rom compan#=s $rochures2 manuals and annual reports. BABASAB PATIL Page @4
Insurance as a Investment tools with regards to ULIP !"ternal *ata2 on the other hand2 was generated &rom research $oo1s and internet 6we$sites7.
S#"P-IN4 TEC)NI; ES
5 sample is a representative part o& the population. In sampling techni+ue2 in&ormation is collected onl# &rom a representative part o& the universe and the conclusions are drawn on that $asis &or the entire universe. 5 random sampling techni+ue was used to collect data &rom the respondents. 5 random sample is a sample selected &rom a population in such a wa# that ever# mem$er o& the population has a e+ual chance o& $eing selected and the selection o& an# individual does not in&luence the selection o& an# other. The selection is purel# depends on chance. So while conducting the surve#2 144 respondents were selected at random. S5<PL! SIT! Sample si(e denotes the num$er o& elements selected &or the stud#. Eor the present stud#2 144 respondents were selected at random<
INST$ "ENT#TION TEC)NI; ES*
To 1now the response2 the researcher used +uestionnaire method. It has $een designed as a primar# research instrument. /uestionnaires were distri$uted to respondents and the# were as1ed to answer the +uestions given in the +uestionnaire. The +uestionnaires were used as an instrumentation techni+ue2 $ecause it is an important method o& data collection. The success o& the +uestionnaire method in collecting the in&ormation depends largel# on proper dra&ting. So in the present stud# +uestions were arranged and interconnected logicall#. The structured +uestionnaire will reduce $oth interviewers and interpreters $ias. Eurther using SPSS so&tware and anal#sis was done &or each +uestion=s response to reach into &indings2 suggestions and &inall# to the conclusion a$out the topic.
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Insurance as a Investment tools with regards to ULIP Learning e"perience The environment in which the company operates is that of a highly competitive energetic atmosphere. And as a fresher that is an excellent start to begin ones corporate experience especially in the service sector (life insurance) with. This inplant training has provided a vital learning element in the career of freshers. As it has enabled us to realize most of the classroom training obtained so far in a real life corporate environment. And so there has been a link developed between theory and practices. Through this inplant training students can experience the kind of break that awaits us in the corporate world. This exercise also gets us to understand the amount of dedication and determination that professionals would have to put in, in their every day’s work because the decisions they take is a matter of loss or profit for the company. And mista1es are generall# not entertained in the +ualit# circles. The study also enlightened us with the amount of togetherness the staff of ICICI Prudential have as an expandable family in their working culture . This is enumerated with all the employees taking mentioning interest in sharing their colleague’s problems either physical or mental in comforting them, as would normally happen in a family set up.
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17 >ender
Ere+uenc# Percent .alid Percent .alid <ale Eemale Total CD =>> C-.4 D.4 =>><> C-.4 D.4 =>><>
Cumulati ve Percent C-.4 144.4
gendor
female
male
InterpretationA 5ccording to our pro%ect surve# we have come to now the out o& 144 responds in that C-M are male and DM &emale. There&ore male are more than &emale in 9u$li cit#.
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'7 Occupation (re:uen Percent !alid Cumulati cy Percent ve Percent 14 14.4 14.4 14.4 1-.4 '@.4 @1.4 =>><> 1-.4 '@.4 @1.4 =>><> '-.4 -C.4 144.4
!alid
business man professional 1s student '@ Others Total @1
=>>
occupation
business man
proffesional
others
student
InterpretationA 5ccording to our pro%ect surve# we &ind $usiness men 14M2 pro&essional 1-M2student '@M2 and then others are @1M. It will indicates that others are more compare to $usiness men2 pro&essional and student
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)7 /hich of these are important .hile choosin+ life insurance? (re:uency Percen !alid Cumulati t Percent ve Percent investme ? ?.4 ?.4 ?.4 nt security 1@ [email protected] [email protected] ').4 savin+s 11 11.4 11.4 )-.4 Tax ? ?.4 ?.4 -'.4 benefits returns 'B 'B.4 'B.4 DC.4 financial )1 future need Total =>> )1.4 )1.4 144.4
!alid
=>><> =>><>
which of these are important whie choosing life insurance
investment
financial future nee
security
savings
tax benefits returns
Interpretation*
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Insurance as a Investment tools with regards to ULIP 5ccording to our pro%ect surve# out o& 144 respondent2 ?M investment2 1@M securit#211M savings2?M ta" $ene&its2'BM returns2 )1M &inancial &uture need. It suggests that more people are choice insurance &or &inancial &uture needs.
@2 In .hich company you have invested (re:uency Percent !alid Cumulativ Percent e Percent )C )C.4 )C.4 )C.4 @1.4 '.4 B.4 1.4 =>><> @1.4 '.4 B.4 1.4 =>><> C4.4 C'.4 CC.4 144.4
!alid
-IC ICICI Prudenti @1 al $eliance insuranc ' e 'ajaj B #llian5As if any 1 other Total =>>
in which company you have invested
if any other bajaj allianzas Reliance insurance
LIC
ICICI Prudential
Interpretation*
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Insurance as a Investment tools with regards to ULIP 5ccording to our pro%ect surve# out o& 144 respondent )CM invest in LIC2 @1M invest in ICICI Prudential li&e insurance2 'M invest in ,eliance insurance2 BM invest in 0a%a% 5llian(=s and 1M o& respondent other companies B2 )o. did you come to 0no. the life insurance? (re:uency !alid T<!< #dvertisement ) Ne.s paperCma+a5inesA Company advisor1a+ent2 reference1friends relatives2 if any other Total D1 'D D =>> Percent ).4 -.4 D1.4 'D.4 D.4 =>><> !alid Cumulative Percent Percent ).4 -.4 D1.4 'D.4 D.4 =>><> ).4 B.4 D?.4 C-.4 144.4
how did you come to know the life insurance
if any other reference friends re "#$# %dvertisement new s paper!magzines
company advisor agen
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Insurance as a Investment tools with regards to ULIP Interpretation* 5ccording to our pro%ect surve# out o& 144 respondent people get the in&ormation )M on T...advertisement2 -M on news paper and maga(ines2D1M compan# advisors2 'DM re&erence6 &riends and relatives7. 5ccording to our pro%ect surve# shows that more people get in&ormation &rom compan# advisors. D2 are you a.are of -IP in ICICI Prudential life insurance? (re:uency Percen !alid Cumulati t Percent ve Percent BB-.4 B-.4 B-.4 ''-.4 '.4 =>><> '-.4 '.4 =>><> C?.4 144.4
.alid
%es No
Not ' respond Total =>>
are aware of &LIP in ICICI Prudential life insurance
not respond no
yes
InterpretationA
5ccording to our pro%ect surve# out o& 144 respondent2 awareness o&
ULIP in ICICI Prudential li&e insurance is B-M2 and non awareness o& ULIP is '-M2 and not respondents are 'M.it indicates that awareness o& ICICI Prudential is more. BABASAB PATIL Page @?
Insurance as a Investment tools with regards to ULIP
B7 If yes6 .hich insurance plan .ould li0e to invest in ICICI Prudential life insurance? (re:uency Percen !alid Cumulati t Percent ve Percent '4 '4.4 '4.4 '4.4 1B.4 )C.4 1.4 ').4 =>><> 1B.4 )C.4 1.4 ').4 =>><> )B.4 BD.4 BB.4 144.4
!alid
Smart 0id lifetime 1B +old retireme )C nt solution if other1 specify Not ') respond Total =>>
if yes' which insurance plan would like to invest in ICICI Prudential l
(ot respond smart kid
if other specify
lifetime gold
retirement solution
Interpretation A 5ccording to our pro%ect surve# out o& 144 respondent '4M respondents li1e to invest smart 1id2 1BM li&etime gold2 )CM retirement solution2 1M respondents li1e to
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Insurance as a Investment tools with regards to ULIP invest rest o& the plans2 ')M not respondents2 according to our surve# people would li1e to invest more in retirement solution plan.
E2 /hat factor consider .hile ma0in+ the -IP in ICICI
)re*uency Percent $alid Percent $alid flexibility + security -returns /0
-/ )ull withdraw al .0 (ot respond "otal 100 +#, --#, /0#, -/#, +#, --#, /0#, -/#,
Cumulat ive Percent
+#, .,#, 10#, 22#,
.0#,
.0#,
-,,#,
100.0
100.0
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Insurance as a Investment tools with regards to ULIP
what factor consider while making the &LIP in ICICI
flexibility not respond security
full w ithdraw al
returns
InterpretationA 5ccording to our pro%ect surve# out o& 144 respondents CM considered &or ma1ing ULIP is &le"i$ilit#2 11M considered &or securit#2 -)M &or returns 1-M &or &ull withdrawals and ')M not respondent It shows people considered ULIP &or the purpose o& returns. C7 /hich premium payment method you have opted for
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)re*uency $alid yearly half yearly *uartely monthly not responden t "otal .3 0/ + 1 .0 -,,
Percent .3#, 0/#, +#, 1#, .0#, -,,#,
$alid Cumulativ Percent e Percent .3#, .3#, 0/#, 1.#, +#, 2-#, 1#, 22#, .0#, -,,#, -,,#,
which preimum payment method you have opted for
not respondent yearly
monthly
*uartely
half yearly
Interpretation* 5ccording to our pro%ect surve# out o& 144 respondent '?M opted &or #earl#2 )-M hal& #earl#2 CM +uarterl# and remaining DM &or monthl#. It will indicates more people opted &or investment premium pa#ment method &or hal& #earl# $asis. 142 )o. much ris0 involved in -IP (re:uency Percen !alid BABASAB PATIL Cumulati Page D'
Insurance as a Investment tools with regards to ULIP t !alid -o. @ @.4 -4.4 )'.4 ').4 =>><> Percent ve Percent @.4 -4.4 )'.4 ').4 =>><> @.4 [email protected] BB.4 144.4
avera+e -4 )i+h )' Not ') respond Total =>>
how much risk involved in &LIP
low not respond
average
high
Interpretation* 5ccording to our pro%ect surve# out o& 144 respondent ris1 involved in ULIP @M said low ris12 -4M said average2 )'M said high ris1 and ')M not responded &or ULIP. It indicates that ris1 in ULIP average2 its depend upon the mar1et condition.
==2 /hat is the premium you are payin+ per annum?
Ere+uenc Percent # BABASAB PATIL
.alid Percent
Cumulati ve Page D)
Insurance as a Investment tools with regards to ULIP Percent )).4 DD.4 B).4 BD.4 144.4
.alid
14444 14444 '@444 '@444 @4444 @4444 144444 Not respond Total
)) )) B ) '144
)).4 )).4 B.4 ).4 '-.4 144.4
)).4 )).4 B.4 ).4 '-.4 144.4
what is the premium you are paying per annum
not respond -,,,,
4,,,,5-,,,,,
.4,,,54,,,,
-,,,, 5.4,,,
Interpretation* 5ccording to our pro%ect surve# out o& 144 respondent ))M people pa# 14444 per annum2 BM people pa# 14444 '@444 per annum2 )M people pa# @4444 144444 per annum and rest o& '-M peoples not respond =F2 In future .ould li0e to invest in
(re:uency Percent!alid Cumulati Percent ve Percent BABASAB PATIL Page D-
Insurance as a Investment tools with regards to ULIP !alid insurance D) mutual B fund E:uity @ Share 11 mar0et investin+ in1 +old 'an0 1) deposits Total 144 D).4 B.4 @.4 11.4 1.4 1).4 144.4 D).4 B.4 @.4 11.4 1.4 1).4 144.4 D).4 B4.4 [email protected] ?D.4 ?B.4 144.4
in future would like to invest in
bank deposits investing in gold share market
e*uity insurance mutul fund
Interpretation* #ccording to our pro%ect surve# out o& 144 respondent D)M people invest in insurance2 BM people invest in mutual &unds2 @M people invest in invest in e+uities2 11M people invest in share mar1et2 1M people invest in gold and remaining 1)M invest in $an1 deposits. It shows that in &uture more people interested to invest in insurance. =G2 #re you satisfied .ith the performance of the insurance? -IP in ICICI Prudential life
(re:uenc Percen !alid Cumulati y t Percent ve Percent BABASAB PATIL Page D@
Insurance as a Investment tools with regards to ULIP !alid )i+hly @? satisfied satisfied )) moderate ? )i+hly 1 dissatisfied Total =>> @?.4 )).4 ?.4 1.4 =>><> @?.4 )).4 ?.4 1.4 =>><> @?.4 C1.4 CC.4 144.4
are you satisfied with the performance of the &LIP in ICICI Prudential l
highly dissatisfied moderate
satisfied higly satisfied
Interpretation* #ccording to our pro%ect surve# out o& 144 respondent satis&action o& ULIP in ICICI Prudential is @?M respondents are highl# satis&ied2 ))M respondents are onl# satis&ied2 ?M respondents are moderate and rest o& 1M respondents highl# dissatis&ied. It indicates that per&ormance o& ULIP in ICICI prudential according to respondent is highl# satis&ied . 1-7 #re you satisfied .ith the advisor of ICICI Prudential life insurance? (re:uency Percen !alid Cumulati t Percent ve Percent excellent @? @?.4 @?.4 @?.4 4ood 'B 'B.4 'B.4 [email protected]
!alid
BABASAB PATIL
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Insurance as a Investment tools with regards to ULIP avera+e 1@ Total 144 [email protected] 144.4 [email protected] 144.4 144.4
are you satisfied with the advisor of ICICI Prudential life insurance
average
good
excellent
Interpretation* 5ccording to our pro%ect surve# out o& 144 respondent satis&action o& advisors wor1 is @?M respondents sa#s e"cellent2 'BM respondents sa#s good2 1@M respondents sa#s average6medium7.
1@7 Satisfied level to.ards -IP in ICICI Prudential life insurance
!alid
)i+hly satisfied satisfied -1
(re:uenc Percent !alid Cumulati y Percent ve Percent @) @).4 @).4 @).4 -1.4 -1.4 C-.4 Page DB
BABASAB PATIL
Insurance as a Investment tools with regards to ULIP neither ) satisfied or dissatisfi ed dissatisfi ) ed Total 144 ).4 ).4 CB.4
).4 144.4
).4 144.4
144.4
satisfied level towards &LIP in ICICI Prudential life insurance
dissatisfied neither satisfied or
satisfied
highly satisfied
Interpretation* 5ccording to our pro%ect surve# out o& 144 respondent levels o& satis&action a$out ULIP @)M people are highl# satis&ied2 -1M onl# satis&ied2 )M neither satis&ied or dissatis&ied and rest o& )M peoples are dissatis&ied.
O'SE$!#TION 1. It was &ound that C-M male and 1DM &emale are participating in our surve#. '. It was &ound that occupation o& respondents is $usiness man 14M2 pro&essional2 1-M2student '@M and others are @1M BABASAB PATIL Page D?
Insurance as a Investment tools with regards to ULIP ). It was &ound that the peoples choice o& insurance2 is investment is ?M2 securit# 1@M2savings 11M2ta" $ene&its ?M2 returns 'BM2 and &inancial &uture need is )1M2 it shows that the people thin1 more &or &inancial &uture needs. -. It was o$served that peoples are interested to invested in )CM in LIC2 @1M in ICICI2 'M in ,eliance2 BM in 0a%a 5llian( and rest o& the peoples other
companies i.e. 0irla sun li&e2 9*EC2 IN> .JSJ5 etc. it indicates that more peoples are interested to invest in ICICI Prudential li&e insurance compan#. @. It was &ound that people get the in&ormation is )M on T...advertisement2 -M on news paper and maga(ines2D1M compan# advisors2 'DM re&erence6 &riends and relatives7 it shows that people get more in&ormation &rom compan# advisors. D. awareness o& ULIP in ICICI Prudential li&e insurance is more B-M2
$ecommendations*3
Eor ICICI to have a larger mar1et share it has to widen the customer $ase2 so it should come up with intensive mar1et strateg# and aggressive pu$licit# stunts such asA *eplo#ment o& addition sales &orce &or proper mar1eting. BABASAB PATIL Page DC
Insurance as a Investment tools with regards to ULIP Continuous $om$ardment o& 5dvertisement $# ICICI Prudential as a Li&e Insurance Compan# &or a common man as well as &or well educated and good salaried people. 9oardings in and around the important areas6pu$lic concentrated areas7 The compan# should concentrate on the people aged $etween 1? '@ &or individual and also the age categor# )@ @@ &or &amil#. Since individuals are interested in insuring their &amil# mem$ers the compan# should concentrate on insuring the individual=s &amil# mem$ers. ICICI Prudential should concentrate on geographical areas &or its e"pansion and to penetrate through rural areas it should tie up with rural $an1s such as <.>.0an1 etc. )-M respondents would li1e to pa# hal& #earl# premium. The compan# should also emphasis on #earl# pa#ment o& premium Top o& mind insurance compan# is LIC2 $ecause o& its trust what people 1eep in it and its awareness. So ICICI Prudential should emphasis heav# advertisement. )1M respondents would li1e to invest mone# in insurance &or &inancial &uture need. So ICICI to provide di&&erent &inancial &uture satis&action plans to the people.
Conclusion
To conclude2 the surve# results highlight some important &acts2 though ICICI Prudential ma# $e comparativel# competitive with other companies ULIP. The choice o& people investing in insurance is more as )1M and awareness o& ICICI Prudential ULIP is more as B-M2 D1M people get in&ormation &rom compan# advisors and satis&action level o& ULIP is more as @)M it will shows that ULIP is grow more in &uture da#s.
BABASAB PATIL
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Insurance as a Investment tools with regards to ULIP
o ;uestionnaire o 'iblio+raphy
; ESTIONN#I$E
=2 Name* HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH F2 #+e* HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH "ale (emale Page B1
G2 4ender*
BABASAB PATIL
Insurance as a Investment tools with regards to ULIP
@2 Occupation* 'usiness man Student
Professional Others HHHHHHHHHHHHHHHHHH
B2 #nnual Income* 'elo. 8 =6>>6>>> G6>>6>>> , @6>>6>>>
=6>>6>>> , F6>>6>>> B6>>6>>> 8 #bove
D2 #ddress* HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH I2 Contact number* HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
E7 /hich of these are important .hile choosin+ the life insurance? Investment Ta" 0ene&its Securit# ,eturns Savings Einancial Euture need
J2 In .hich company you have invested? a7 LIC $7 ICICI Prudential c7 ,eliance insurance d7 <a" New Jor1
BABASAB PATIL
Page B'
Insurance as a Investment tools with regards to ULIP e7 0a%a% 5lian(as 5n# other UUUUUUUUUUUUUUUUUU =>2 )o. did you come to 0no. the life insurance? T...5dvertisement News paper G <aga(ines Compan# advisors 65gents7 ,e&erence 6Eriends ,elatives7 I& an# otherUUUUUUUUUUUUUUUUUUUU
=G2 #re you a.are of -IP in ICICI Prudential life insurance? 1If no +o to =J;2
Jes
No
=@2 If yes6 .hich insurance plan .ould li0e to invest in ICICI prudential? Smart 1id ,etirement solution Li&etime >old I& other speci&#UUUUUUUUU
=B2 /hat factors consider .hile ma0in+ the -IP in ICICI a7 Ele"i$ilit# c7 ,eturns BABASAB PATIL $7 securit# d7 &ull withdrawal Page B)
Insurance as a Investment tools with regards to ULIP
I& an# otherUUUUUUUUUUUUUUUUUUUUU =D2 /hich premium payment method you have opted for< Jearl# /uarterl# 9al& #earl# <onthl#
=I2 )o. much ris0 involved in -IP< Low average high No ris1
=E2 /hat is the premium you are payin+ per annum? a7 14444 c7 '@444 @4444 $7 14444 '@444 d7 @4444 144444
=J2 In future you .ould li0e to invest in? Insurance Share mar1et <utual &und investing in gold !+uit# 0an1 *eposits
F>2 #re you satisfied .ith the performance of the -IP in ICICI prudential? UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU 9ighl# Satis&ied F=2 #re you satisfied .ith the advisor service in ICICI prudential? UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU BABASAB PATIL Page BSatis&ied <oderate *issatis&ied 9ighl# *issatis&ied
Insurance as a Investment tools with regards to ULIP
!"cellent
>ood
5verage
0ad
vast
FF2 Satisfied level to.ards -IP s in ICICI prudential? UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU 9ighl# Satis&ied Satis&ied nether satis&ied or dissatis&ied *issatis&ied 9ighl# dissatis&ied
KThan0 you for your co3operationL
'iblio+raphy
=< ...<iciciprulife<com F< ...<+oo+le<com G< ...<insurance<com
BABASAB PATIL
Page B@
S.NO 1.
Titles Chapter – I !"ecutive summar# O$%ectives o& the stud# Introduction Purpose o& the stud# Scope o& the stud# Statement o& the pro$lem
Page No
'.
Chapter – II Organi(ation Pro&ile Organi(ation Chart
).
Chapter – III *ata collection method Instrumentation techni+ues Learning e"perience O$servation ,ecommendations Conclusion Chapter – I. /uestionnaire 0i$liograph#
-.
BABASAB PATIL
Page 1
Insurance as a Investment tools with regards to ULIP
CONTENTS
Executive Summary Objectives Introduction Purpose of the study Scope of the study Statement of the problem
EXEC TI!ES ""#$%
BABASAB PATIL
Page '
Insurance as a Investment tools with regards to ULIP ICICI Prudential Li&e Insurance Compan# is a %oint venture $etween ICICI 0an12 a premier &inancial powerhouse and prudential plc2 a leading international &inancial services group head+uartered in the United 3ingdom. ICICI Prudential was amongst the &irst private sector insurance companies to $egin operations in *ecem$er '444 a&ter receiving approval &rom Insurance ,egulator# *evelopment 5uthorit# 6I,*57. 5s the people are $ecoming more and more and aware o& their Li&e St#le and Income level. The# need a plan2 which has an optimum $alance $etween their Investment and Savings. The# re+uire an integrated &inancial plan &or investment. The customer re+uires those investment options2 which provide them with &le"i$ilit# and Li+uidit# and ta" $ene&it. I am &ound out tools relates to investment in ULIP at ICICI Prudential li&e insurance. This pro%ect emphasis on 8Insurance as a investment tool with regards to ULIP at ICICI Prudential Li&e Insurance Compan# Ltd2 9u$li:
5 P,O;!CT ,!PO,T ON 8Insurance as a investment tool with regards to ULIP at ICICI Prudential Li&e Insurance Compan# Ltd2 9u$li:
O$%ectives To 1now the importance and awareness o& investment in ULIP To 1now the ris1 perception investment relating to the &inancial management To 1now the elements o& ris1 and returns in ULIP To e"amine the per&ormance o& the plan
INT$O& CTION BABASAB PATIL Page )
Insurance as a Investment tools with regards to ULIP 5s &inance is the li&e$lood &or all economic activities2 one aspect o& &inancial arena2 which pla#s a ver# important role2 is the Insurance. Insurance is the outcome o& <an=s search &or sa&et# and securit#2 and to &ind out wa#s and means to minimi(e the hardship2 which are $e#ond his control. 0ecause o& the economic re&orms introduced $# our government we can see that due to this >lo$ali(ation and privati(ation there is enormous increase in the private sector pla#ers +ueuing in the insurance sector. This entr# o& Private pla#ers has enhanced the competitiveness and /ualit# o& service with man# innovated products. Now in India there are totall# '? pla#ers including 1- Li&e and 1- >eneral Insurance Companies. 5nd Li&e Insurance is one o& the most common &orms o& insurance. ICICI Prudential Li&e Insurance Compan# is an emerging star in the Private pla#ers with the competition $eing >lo$al in nature '$IE( )ISTO$% O( INS $#NCE* The $usiness o& insurance started with marine $usiness. The &irst insurance polic# was issued in 1@?) in !ngland. Some o& the important milestones in the insurance $usiness in India areA 1?1?A The 0ritish introduce to India2 with the esta$lishment o& the Oriental Li&e Insurance Compan# in Calcutta. 1?@4A Non li&e insurance de$uts2 with Triton Insurance compan#. 1?B4A 0om$a# <utual Li&e 5ssurance Societ# is the &irst India owned li&e insurer. 1C4BA Indian <ercantile Insurance is the &irst Indian non li&e insurer. 1C1'A The Indian li&e assurance Companies act enacted to regulate the li&e insurance $usiness. 1C)?A The insurance act2 which &orms the $asis &or most current insurance laws2 replaces
earlier act. 1C@DA Li&e insurance nationali(ed2 government ta1es over '-@ Indian and &oreign insurers
and provident societies. 1CB'A Non Li&e insurance nationali(ed2 >IC set up. 1CC)A <alhotra Committee2 headed $# &ormer 00I governor ,.N. <alhotra2 set up to draw up a $lue print &or insurance sector re&orms. BABASAB PATIL Page -
Insurance as a Investment tools with regards to ULIP 1CC-A <alhotra Committee recommends re entr# &or private pla#ers2 autonom# to PSU insurers. 1CCBA Insurance regulator I,*5 6Insurance ,egulator# and *evelopment 5uthorit#7 set up. '444A I,*5 starts giving licences to private insurers2 ICICI Prudential and 9*EC Standard Li&e &irst private insurers to sell a polic#. '44'A 0an1s were allowed to sell insurance plans2 as TP5s enter the scene2 insurers start settling non li&e claims in the cashless mode.
InsuranceA *e&inition and <eaning
Eunctional de&initionA In the words o& ,.S.Sharma 8Insurance is a Co operative devices to spread the loss caused $# particular ris1 over a num$er o& persons who were e"posed to it and who agree top insure themselves against the ris1: Contractual *e&initionA 5ccording to !.F.Patterson2 8Insurance is a contract $# which one part#2 &or a consideration called a premium2 assures a particular ris1 o& other part# ad promises to pa# to him or his nominee a certain or ascertaina$le sum o& mone# on a speci&ied contingenc#. 5ccording to the U.S Li&e O&&ice <anagement 5ssociation Inc 6LO<572 Li&e Insurance is de&ined as &ollowsA Li&e insurance provides a sum o& mone# i& the person who is insured dies whilst the polic# is in e&&ect Other terms used in relation to insurance and their meanin+* #+ent* The authori(ed representative o& the insurer2 licensed $# the concerned authorities li1e I,*5 to canvass insurance.
'onus* The #earl# share o& polic# holders pro&it declared $# the compan# $ased on its pro&its which gets added to the polic# amount and is pa#a$le upon its maturit#.
BABASAB PATIL
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Insurance as a Investment tools with regards to ULIP Claim* The amount entitled to the polic# holder or his nomineeGassignee under a polic# contract in the event o& the happening o& the contingenc# insured against. Insurable Interest* !vidence suggesting &inancial losses due to the occurrence o& the event insured against. Policy* The evidence o& contract $etween the insurer and the insured. 5 stamped sealed and signed document issued $# the insurer to the insured in proo& o& insuring his li&e. Premium* The amount mentioned in the polic# contract to $e paid $# the insurer periodicall# to the insure to 1eep the polic# in &ull &orce
Insurance in Indian (inancial System*
In India insurance is in practice since 1' th centur# as per the records. The &irst li&e insurance compan# to operate in India the Oriental Li&e Insurance compan# was esta$lished in 1?1? in Calcutta. 9owever it was a 0ritish compan#. The &irst Indian Insurance compan#2 the 0om$a# <utual Li&e 5ssurance Societ# started its operation in 1?B1. The Indian Li&e Insurance compan# 5ct was passed in 1C'?.Su$se+uentl#2 $oth o& these 5cts were merged and the insurance 5ct 1C)? was promulgated. Independent India amended the Insurance 5ct in 1C@4 and in 1C@D2 the then &iancH minister o& the nation <r. C * *eshmu1h nationali(ed all insurance companies2 1@- Indian Insurance companies and B@ provident societies. Einall# the li&e insurance Corporation was $orn on 1st Septem$er 1C@D. The stor# o& non li&e insurance in India is no di&&erent. Though Llo#d=s insurance pioneered the general Insurance wa# $ac1 in 1D??2 the &irst non li&e Insurance Compan# set up shop in India was the Triton Insurance compan# o& Calcutta. In 1C4B the &irst Indian general insurer the Indian <ercantile insurance compan# started its operations. The New India 5ssurance Compan# Limited was incorporated in 1C1C. 5&ter independence the India ,einsurance Corporation was set up in 1C@D and in 1C@B the o&&ice o& the controller o& the insurance was constituted. In 1CD?2 that tari&& advisor# committee was set up to regulate the investment o& the pla#ers and &inall# in 1CB'2 the non li&e insurance $usiness in the countr# BABASAB PATIL Page D
Insurance as a Investment tools with regards to ULIP was nationali(ed and the general insurance compan# was &ormed as holding compan# with &our su$sidiaries2 the National Insurance2 Oriental Insurance2 United India Insurance and the new India 5ssurance Compan# Limited. In the same #ear the National Insurance Compan# Limited was amalgamated with '' &oreign and 11 Indian Insurance companies. Thus over a period o& two centuries2 the Indian insurance industr# has gone through the &ull circle. Erom $eing an open competitive mar1et2 it went through nationali(ation and has $een su$se+uentl# li$erali(ed again. 3eeping in mind the national economic and commercial o$%ective o& India the government has set up I,*5 on B th *ecem$er 1CCC. Through which the re&orms process o& the industr# got under wa#. Insurance in Indian (inancial System , Its Importance Insurance industr# is one o& the corner stone o& an# econom# and &inancial S#stem. Insurance industr# contri$utes its ma%or part in increasing the saving and the &und collected is utili(ed in developmental programs. The Einancial sector in our countr# is in the process o& change with the o$%ective o the overall growth o& the econom#. The insurance sector as ever# one 1nows constitutes a ver# important and vital &inancial intermediar# &or the growth o& the econom#. Insurance has $ecome part and parcel o& the &inancial s#stem $ecause itA • • • • • • • • ,educes the uncertaint# o& $usiness loses. Increases $usiness e&&icienc#. Identi&ies 1e# men. !nhances the credit. Ta1es care o& wel&are o& the societ#. Protect the wealth o& the nation. 9elps to attain economic growth. ,educes the in&lation level.
The advanta+es of -ife Insurance * • Li&e insurance is $rought not $ecause someone is going to die2 $ut $ecause someone is going to live. BABASAB PATIL Page B
Insurance as a Investment tools with regards to ULIP • • • • • • • • • • Li&e insurance means peace o& mind. Li&e insurance promises pa#ment o& the &ull sum assured &rom the moment the &irst premium is paid. Li&e insurance encourages regular savings and guards against e"travagances. In most cases li&e insurance possesses a cash value a&ter the &irst three #ears. Li&e insurance removes the worr# o& loo1ing a&ter #our savings. !"perts sa&el# and pro&ita$l# invest #our mone# on #our $ehal& $# e"perts. Li&e insurance guarantees pa#ment in cash and is $ac1ed $# the >overnment o& India. Li&e insurance is a ta" saving product. Li&e insurance is &ree &rom loss2 &rom the&t2 &ire2 misplacement etc. 5 li&e insurance contract is one sided2 i.e.2 alwa#s in &avor o& the insured and his &amil#. One can withdraw &rom the contract an#time2 $ut the compan#=s cannot. Li&e insurance replaces uncertaint# with certaint#. It provide a complete2 $alanced and per&ect hedge against economic threats2 which con&ront all person2 the danger o& living too long or the danger o& d#ing soon.
)o. Insurance /or0s
Suppose there are 1444 person all aged )@ #ears and health# lives. The# are insured &or one #ear against the ris1 o& death. !ach person is insured &or ,s. @42444. i& the past e"perience indicates the - out o& 1444 people die during the #ear2 e"pected amount claimed to $e paid to the &amil# o& - persons would come to ,s. '2442444. the contri$ution to $e paid $# the each o& the 1444 will come to ,s.'44 per #ear. Thus2 all the 1444 persons share loss caused to the - un&ortunate &amilies. CCD persons who survived till 1 #ear have not lost an# thing as the# have secured peace o& mind and a &eeling o& securit# &or their &amil#. Fhile insurance cannot prevent accident or premature death2 it can help2 protect the &amil# o& the deceased against the loss o& income caused $# the o& the main $readwinner. In return &or speci&ied pa#ments2 insurance will provide protection against the insurance o& an uncertain event such as premature death.
BABASAB PATIL
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Insurance as a Investment tools with regards to ULIP The $usiness o& insurance compan# called insurer is to $ring together persons who are e"posed to similar ris12 collect contri$ution 6premium7 &rom them on sum e+uita$le $asis and pa# the losses 6claim7 to the un&ortunate &ew who su&&er.
NEE& (O$ T)E INS $#NCEA
Unli1e other avenues o& savings where the amount saved with interest is pa#a$le onl# on maturit#2 insurance plans provide &or pa#ment o& the total sum assured along with a $onus2 i& an#2 on an# eventualit# even $e&ore the maturit# o& the polic#. 5nd another advantage o& insurance is that an insurer can avail loans against the securit# o& the polic# &rom the insurance compan#. !ven $an1s and other &inancial institutions advances loans with insurance policies as a collateral securit#.To provide &or one=s &amil# and perhapsI others in the event o& death2 especiall# premature death. Originall#2 policies were to provide &or short period o& time2 covering temporar# ris1# situations2 such as sea vo#ages. 5s lie insurance $ecame more esta$lished2 it was reali(ed what a use&ul tool it was &or a num$er o& situation2 includingA • Temporar# needsGthreatsA The original purpose o& li&e insurance remains an important element2 namel# providing &or replacement o& income on death etc. • ,egular savingsA Providing &or one=s &amil# and onesel&2 as a medium o long term e"ercise 6through a series o& regular pa#ment o& premiums7. This has $ecome more relevant in recent times as people see1 &inancial independence &rom their &amil#. • InvestmentI It is the insurance that $uilds up the savings o& the societ# and thus sa&eguard the econom# &rom the ravages o& in&lation. Unli1e regular saving products2 investment Products are traditionall# lump sum investments2 where the individual ma1es one time pa#ment. • ,etirementAProvisions &or one=s own later #ears $ecome increasingl# necessar#2 especiall# in a changing cultural and social environment. One can $u# a suita$le insurance polic#2 which will provide periodical pa#ments in one=s old age. /hy should you ta0e insurance
BABASAB PATIL
Page C
Insurance as a Investment tools with regards to ULIP Insurance is desired to sa&eguard onesel& and ones &amil# against possi$le losses on account o& ris1 and perils. It provides &inancial compensation &or the losses su&&ered due to the happening o& un&oreseen events. 0# ta1ing li&e insurance a person can have peace o& mind and need not worr# a$out the &inancial conse+uences in case o& an# untimel# death. 5long with the growth o& overall population in the countr#2 crossing the $enchmar1 o& hundred crore2 there gas $een a signi&icant awareness &or the need &or insurance in the other as well as rural segments and even among the lower middle class and illiterate class o& the population.Fe in India have around )4 crore middle class educated and enlightened people who have not reali(ed that insurance is as necessar# as the other $asic necessities o& li&e such as &ood2 shelter2 clothing. The Insurance $e+ulatory and &evelopment #uthority 1I$* ,e&orms in the Insurance sector were initiated with the passage o& the I,*5 0ill in Parliament in *ecem$er 1CCC. The I,*5 since its incorporation as a statutor# $od# in 5pril '444 has &astidiousl# stuc1 to its schedule o& &raming regulations and registering the private sector insurance companies. The other decisions ta1en simultaneousl# to provide the supporting s#stems to the insurance sector and in particular the li&e insurance companies were the launch o& the I,*5=s online service &or issue and renewal o& licenses to agents. The approval o& institutions &or imparting training to agents has also ensured that the insurance companies would have a trained wor1&orce o& insurance agents in place to sell their products2 which are e"pected to $e introduced $# earl# ne"t #ear. Since $eing set up as an independent statutor# $od# the I,*5 has put in a &ramewor1 o& glo$all# compati$le regulations. In the private sector 1' li&e insurance and D general insurance companies have $een registered.
(unctionin+ of the I$&#
• • To e"ercise all the powers and &unctions o& controller o& insurance. Protection o& the interest o& the polic# holders. Page 14
BABASAB PATIL
Insurance as a Investment tools with regards to ULIP • • • • • • • • To issue2 renew2 modi withdraw or suspend certi&icate o& registration. To speci&# re+uisite +uali&ication and training &or insurance intermediaries and agents. To promote and regulate pro&essional organi(ations connected with insurance. To conduct inspectionGinvestigation etc. To prescri$e method o& insurance accounting. To regulate investment o& &unds and margins o& solvenc#. To ad%udicate upon dispute. To conduct inspection and audit o& insurers intermediaries and other organi(ation concerned with insurance. Fith a mission o& A 8 protect the interest o& the polic# holders to regulate promote and ensure orderl# growth o& the insurance industr# and &or matters connected there with or incidental thereto:.
I$&# Enablers*
In the new mar1et set up2 the I,*5=s role that o& an ena$ler. The new insurers will conduct insurance $usiness in India according to the health# norms prescri$ed the I,*5. ,egulations &or all insurance intermediaries will speci&# sales norms. >uidelines &or the code o& conduct &or the surve#ors and loss assessors will help all concerned. !&&icienc# will $e promoted in the conduct o& insurance $usiness. Pro&essional organi(ations connected with insurance $usiness will regulate.The role o& I,*52 $esides regulating the mar1et2 it also intents to develop it. The I,*5 has the tas1 to promote &air competition in hither to monopolistic insurance mar1et. In such a &ast develop scenario were the prospected appears to $e $righter $oth &or insurers and the customers CO"PETITO$S IN(O$"#TION IN INS $#NCE IN& ST$%* a7 LIC Eull# owned $# >overnment. $7 Postal Li&e Insurance. BABASAB PATIL Page 11
Insurance as a Investment tools with regards to ULIP ⇒ Private Players 3 a7 0a%a 5llian( Li&e Insurance Co. Ltd. $7 0irla Sun Li&e Insurance Co. Ltd. c7 9*EC Standard Li&e Insurance Co. Ltd. d7 ICICI Prudential Li&e Insurance Co. Ltd. e7 IN> .#s#a Li&e Insurance Co. Ltd. &7 <a" New Jor1 Li&e Insurance Co. Ltd. g7 <etLi&e India Insurance Co. Pvt. Ltd. h7 3ota1 <ahindra Old <utual Li&e Insurance Co. Ltd. i7 S0I Li&e Insurance Co. Ltd. %7 T5T5 5I> Li&e Insurance Co. Ltd 17 5<P Sanmar 5ssurance Co. Ltd. l7 5viva Li&e Insurance Co. Ltd. m7 Sahara India Li&e Insurance Co. Ltd. n7 Shriram Sunlam. ⇒ Other -i0ely Players , PN0 Li&e Insurance2 ,eliance Li&e Insurance2 5"a 0harti !nterprises. IN&I#N INS $E$ /E'SITE 5llian( 0a%a% li&e allian($a%a%.co.in insurance 5ssurance 0irla Sun Li&e Insurance 5viva Li&e avivindia.com *a$ur India 9*EC ICICI .#s#a 0an1 >ovt o& India ampsanmar.com $irlasunli&e.com P$O"OTE$ 0a%a% 5uto Sanmar >roup 5dit#a 0irla >roup (O$EI4N P$O"OTE$ 5llian( 5> 5<P2 5ustralia Sun Li&e Einancial2 Canada 5viva Plc Standard Li&e Prudential Plc IN> >roup None
Insurance 9*EC Standard d&cinsurance.com Li&e insurance ICICI Prudential icicipruli&e.com Li&e Insurance IN> .#s#a Li&e ingv#s#ali&e.com Insurance Li&e Insurance Licindia.com Corporation <a" New Jor1 ma"new#or1li&e.com <etLi&e India metli&eindia.com BABASAB PATIL
<a" India New Jor1 Li&e ;K3 0an12Pallon%i <etropolitan Li&e Page 1'
Insurance as a Investment tools with regards to ULIP Insurance O< K Co 3ota1 Om1ota1mahindra.com 3ota1 s$ili&e.co.in Insurance mahindra Old <utual Plc Cardi&& 6arm o& 0NP Pari$as7 5merican International >roup
<ahindra Li&e S0I li&e insurance Tata 5I> insurance .
&inance State 0an1 o& India Tata >roup
li&e tata aig.com
INT$O& CTION #'O T -IPA The concept o& ULIP came in to e"istence in 1CD4=s to provide an optimum $alance $etween protection and investment. ULIP distinguishes itsel& through the multiple $ene&its it provides to the polic#holders. These plans are designed with a view to help the customers to utili(e the mar1et opportunities $# investing in the share mar1et2 capital mar1et and at the same time have the &acilit# o& *eath 0ene&it and <aturit# 0ene&it.Unit lin1ed li&e insurance products are those where the $ene&its are e"pressed in terms o& num$er o& units and unit price. The# can $e viewed as a com$ination o& insurance and mutual &unds.The num$er o& units that a customer would get would depend on the unit price when he pa#s his premium. The dail# unit price is $ased on the mar1et value o& the underl#ing assets 6e+uities2 $onds2 government securities2 etc7 and computed &rom the net asset value.The advantage o& unit lin1ed plans is that the# are simple2 clear2 and eas# to understand. 0eing transparent the polic#holder gets the entire upside on the per&ormance o& his &und. 0esides all the advantages the# o&&er to the customers2 unit lin1ed plans also lead to an e&&icient utili(ation o& capital. Unit lin1ed products are e"empted &rom ta" and the# provide li&e insurance. Investors welcome these products as the# provide capital appreciation even as the #ields on government securities have &allen $elow D per cent2 which has made the insurers slash pa#outs. 5ccording to the I,*52 a compan# o&&ering unit lin1ed plans must give the investor an option to choose among de$t2 $alanced and e+uit# &unds. I& #ou choose a de$t plan2 the ma%orit# o& #our premiums will get invested in de$t securities li1e gilts and $onds. I& #ou choose e+uit#2 then a ma%or portion o& #our premiums will $e invested in the e+uit# mar1et. The plan #ou choose would depend on #our ris1 pro&ile and #our investment need.The ideal time to $u# a unit lin1ed plan is when one can e"pect long term growth ahead. This is BABASAB PATIL Page 1)
Insurance as a Investment tools with regards to ULIP especiall# so i& one also $elieves that current mar1et values 6stoc1 valuations7 are relativel# low.So i& #ou are opting &or a plan that invests primaril# in e+uit#2 the $u((ing mar1et could lead to wind&all returns. I& one invests in a unit lin1ed pension plan earl# on2 sa# when one is '@2 one can a&&ord to ta1e the ris1 associated with e+uities2 at least in the planLs initial stages. 9owever2 as one approaches retirement the +uantum o& returns should $e su$ordinated to capital preservation. 5t this stage2 investing in a plan that has an e+uit# tilt ma# not $e a good idea.Considering that unit lin1ed plans are relativel# new launches2 their short histor# does not permit an assessment o& how the# will per&orm in di&&erent phases o& the stoc1 mar1et. !ven i& one views insurance as a long term commitment2 investments $ased on per&ormance over such a short time span ma# not $e appropriate. Simpl# put2 ULIPs wor1 ver# similar to a mutual &und with a li&e cover thrown in. The# have a mandate to invest the premiums in var#ing proportions in gsecs 6government securities72 $onds2 the mone# mar1ets 6call mone#7 and e+uities. The primar# di&&erence $etween conventional savings $ased insurance plans li1e endowment and ULIPs is the investment mandate while ULIPs can invest upto 144M o& the premium in e+uities2 the percentage is much lower 6usuall# not more than 1@M7 in case o& conventional insurance plans. ULIPs are also availa$le in multiple options li1e NaggressiveL ULIPs 6which can invest upto 144M in e+uities72 N$alancedL ULIPs 6which invest -4 D4M in e+uities7 and Nde$tL ULIPs 6which invest onl# in de$t and mone# mar1et instruments7. The e"act e"pense structureG $rea1 up &or ULIPs is as transparent as one would have li1ed. 0roadl# spea1ing2 ULIP e"penses are classi&ied into three ma%or categoriesA 17 <ortalit# chargesA <ortalit# e"penses are charged $# li&e insurance companies &or providing a li&e cover to the individual. The e"penses var# with the age2 sum assured and sum at ris1 &or the individual. There is a direct relation $etween the mortalit# e"penses and the a$ove mentioned &actors. In a ULIP2 the sum at ris1 is an important re&erence point &or the insurance compan#. Put simpl#2 the sum at ris1 is the di&&erence $etween the sum assured and the investment value the individualLs corpus as on a speci&ied date. '7 Sales and administration e"pensesA Insurance companies incur these e"penses &or operational purposes on a regular $asis. The e"penses are recovered &rom the premiums that individuals pa# towards their insurance
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Insurance as a Investment tools with regards to ULIP policies. 5gent commissions2 sales and mar1eting e"penses and the overhead costs incurred to run the insurance $usiness on a da# to da# $asis are e"amples o& such e"penses. )7 Eund management charges 6E<C7A These charges are levied $# the insurance compan# to meet the e"penses incurred on managing the ULIP investments. 5 portion o& ULIP premiums are invested in e+uities2 $onds2 gsecs and mone# mar1et instruments. <anaging these investments incurs a &und management charge2 similar to what mutual &unds incur on their investments. E<Cs di&&er across investment options li1e aggressive2 $alanced and de$t ULIPsI usuall# a higher e+uit# option translates into higher E<C. 5part &rom the three e"pense categories mentioned a$ove2 individuals ma# also have to incur certain e"penses2 which are primaril# NoptionalL in nature the e"penses will $e incurred i& certain choices that are made availa$le to individuals are e"ercised. a7 Switching chargesA Individuals are allowed to switch their ULIP options. Eor e"ample2 an individual can switch his &und mone# &rom 144M e+uities to a $alanced port&olio2 which has sa#2 D4M e+uities and -4M de$t. 9owever2 the compan# ma# charge him a &ee &or NswitchingL. Fhile most li&e insurance companies allow a certain num$er o& &ree switches annuall#2 a switch made over and a$ove this num$er is charged. $7 Top up chargesA ULIPs allow individuals to invest a top up amount. Top up amount is paid in addition to the premium amount &or a particular #ear. Insurance companies deduct a certain percentage &rom the top up amount as charges. These charges are usuall# lower than the regular charges that are deducted &rom the annual premium. c7 Cancellation chargesA Li&e insurance companies lev# cancellation charges i& individuals decide to surrender their policies 6usuall#7 $e&ore three #ears. These charges are levied as a percentage o& the &und value on a particular date. Investment tools of unit lin0ed insurance plans * EUN* N5<! 5SS!!T 5N* ITS 5LLOC5TION O0;!CTI.!S <IN. <5O. POT!NTI5L ,IS3 ,!F5,*
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Insurance as a Investment tools with regards to ULIP ,.I.C.9A ,eturns &rom e+uit# investment in &our t#pes o& industries2 vi(2 resources2 investmentGcapital goods2 consumption and human capital leveraged. Ele"i growth IIA Long term returns &rom an e+uit# port&olio o& large2 mid and small capital companies. <ultiplier IIA Long term capital appreciation &rom e+uit# port&olio. Ele"i 0alanced IIA 0alance o& capital appreciation and sta$le returns &rom an e+uit# 6large2 mid and small capital7 and de$t port&olio. 0alancer IIA 0alance growth and stead# returns &rom an e+uit# and de$t port&olio. Protector IIA 5ccumulate stead# income at a lower ris1 !+uit# and e+uit# ?4M related securities *e$t2 mone# 4M mar1et2 and cash. 144M 9igh '4M
!+uit# and e+uit# ?4M related securities *e$t2 mone# 4M mar1et2 and cash. !+uit# and e+uit# ?4M related securities *e$t2 mone# 4M mar1et2 and cash !+uit# and e+uit# 4M related securities *e$t2 mone# -4M mar1et2 and cash
144M 9igh '4M
144M 9igh '4M D4M <oderate 144M
!+uit# and e+uit# 4M related securities *e$t2 mone# D4M mar1et2 and cash *e$t insurance2 mone# mar1et2 and 144M cash
-4M <oderate 144M
144M
Low
Purpose of the Study*
The main purpose o& the stud# is to &ind out the &actors which are in&luencing the investment tools regards with ULIP at ICICI Prudential and to suggest some strategies which will help the organi(ation.
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Insurance as a Investment tools with regards to ULIP
Scope of the study*
The scope o& the stud# will helps to the peoples &or there choice o& investment. The stud# will help to 1now the e"pectations o& the ULIP.in &uture. The compan# can &ind out the satis&action level o& the ULIP o& their product plans. The scope o& the stud# will help the compan# will &ind the pro$lems o& peoples investing in ULIP.
Statement of the problem* 17 Lac1 o& awareness a$out ULIP &unds in rural areas. ICICI Prudential insurance 5dvisor di&&icult to convince them. '7 Lac1 o& co operation $etween the $ranches.
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Insurance as a Investment tools with regards to ULIP
Contents o Or+ani5ation Profile o Company profile o Or+ani5ation Chart
O$4#NIS#TION P$O(I-E*
ICICI Prudential Li&e Insurance Compan# Limited 6Pthe Compan#=7 a %oint venture 0etween ICICI 0an1 Limited and Prudential plc o& U3 was incorporated on ;ul# '42 '444 as a compan# under the Companies 5ct2 1C@D 6Pthe 5ct=7. The Compan# is licensed $# the Insurance ,egulator# and *evelopment 5uthorit# 6PI,*5=7 &or carr#ing li&e insurance $usiness in India. ICICI Prudential Li&e Insurance Compan# is a %oint venture $etween ICICI 0an12 a premier &inancial powerhouse and prudential plc2 a leading international &inancial services group head+uartered in the United 3ingdom 6U37. The compan# $rings together the local mar1et e"pertise and &inancial strength o& ICICI 0an1 and Prudential=s International li&e insurance e"perience. The compan# was granted a certi&icate o& ,egistration $# the I,*5 on Novem$er '-2 '444 and eighteen da#s later2 issued its &irst polic# on *ecem$er 1'. ICICI Prudential was amongst the &irst private sector insurance companies to $egin operations in *ecem$er '444 a&ter receiving approval &rom Insurance ,egulator# *evelopment 5uthorit# 6I,*57.
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Insurance as a Investment tools with regards to ULIP Erom its earl# da#s2 ICICI Prudential seemed to have the wherewithal &or a large scale $usiness. 0# <arch )12 '44'2 a little over a #ear since its launch2 the compan# had issued 1442444 policies translating into premium income o& appro"imatel# ,s. 12'44 million on a sum assured o& over ,s.') $illion. Fhen the compan# $egan its operations2 the need was to $uild a $rand that was relata$le to2 s#m$oli(ed trust and was easil# recogni(ed and understood. It launched a corporate campaign ICICI Prudential also made using the theme o& PSindoor= to epitomi(e protection2 trust2 togetherness and all that is IndianI endearing itsel& to the masses. The success o& the campaign2 Pthe calling card o& the compan#= saw the $rand awareness scores almost at par with its -4 #ear old competitor. The theme o& protection was also e"tended to su$se+uent product and categor# speci&ic Campaigns –&rom child plans to retirement solutions –which highlight how the compan# will $e with its customers at ever# step o& li&e. Erom da# one2 the compan# has un&linchingl# &ocused on $eing mass mar1et pla#er2 developing products2 creating a distri$ution networ1 and deplo#ing resources that would &urther its goal. 5part &rom ramping up thoroughl# training its advisors2 the compan# has twelve P0anc assurance= partners –the largest in the countr#. It swi&tl# revised and added to its initial range o& products2 pioneering mar1et lin1ed products and pension plans2 to o&&er customers the most &le"i$le li&e insurance policies in the countr#. In Ee$ruar# '44-2 ICICI Prudential increased its capital $ase $# ,s. @44 million2 its ninth capital hi1e2 $ringing the total paid –up e+uit# capital to ,s. D2B@4 million. Fith the authori(ed capital o& the compan# standing at ,s. 1' $illion2 ICICI Prudential continues to have the highest capital $ase amongst all li&e insurers in the countr#. The challenge ICICI Prudential now &aces is to retain its top notch position and continue to deliver the &inest li&e insurance and pension solutions to its ever growing customer $ase. ICICI Prudential=s e+uit# $ase stands at ,s. 11?@ crore with ICICI 0an1 and Prudential plc holding B-M and 'DM sta1e respectivel#. Eor the #ear ended <arch )12 '44D2 the compan# garnered ,s.'2 -1' crore o& weighted new $usiness premium and wrote ?)B2CD) policies. The sum assured in &orce stands at ,s.-@2 ??? crore. The compan# has a networ1 o& over B'2444 advisorsI as well as C $ancasurance partners and over '44 corporate agent and $ro1er tie ups.ICICI Prudential is also the onl# private li&e insurer in India to receive a National Insurer Einancial Strength rating o& 555 6Ind7 &rom Eitch ratings. The 555 rating is the highest
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Insurance as a Investment tools with regards to ULIP credit rating2 and is a clear assurance o& ICICI Prudential=s a$ilit# to meet its o$ligations to customers at the time o& maturit# or claims. Eor the past &ive #ears2 ICICI Prudential has retained its position as the No.1 private insurer in the countr#2 with a wide range o& &le"i$le products that meet the needs o& the Indian customer at ever# step in li&e. 0eginning operations in *ecem$er '4442 ICICI Prudential=s success has $een meteoric2 $ecoming the num$er one private li&e insurer within months o& launch. Toda#2 it has one o& the largest distri$ution networ1s amongst private li&e insurers in India2 with $ranches in @cities. The total num$er o& policies issued stands at more than B?42444 with a total sum assured in e"cess o& ,s.1D4 $illion. ICICI Prudential closed the &inancial #ear ended march )12 '44- with a total received premium income o& ,s. C.C $illionI up 1)@M last #ears total premium income o& ,s.-.'4 $illion. New $usiness premium income shows a 14DM growth at ,s. B.@ $illion2 driven mainl# $# the compan#=s range o& uni+ue unit lin1ed policies and pension plans. The compan#=s retail mar1et share amongst private companies stood at )DM2 ma1ing it clear leader in the segment. To add to its achievements2 in the #ear '44)G4- it was ad%udged <ost Trusted Private Li&e Insurer 6!conomic Times P<ost Trusted 0rand Surve#= $# 5C Nielsen O,> <5,>7. It was also con&erred the POutloo1 <one# 0est Li&e Insurer= award &or the second #ear running. The compan# is also proud to have won Silver at !EEI!S '44) &or its P,etire &rom wor12 not li&e= campaign. Nota$l#2 ICICI Prudential was also short listed to the &inal round &or its PSindoor campaign in !EEI!S '44'. ICICI Prudential=s success is rooted in its philosoph# to alwa#s o&&er the customer a choice. This has $een the driving &orce $ehind its multi channel distri$ution strateg#2 which includes advisors2 $an1s2 direct mar1eting and corporate agents. In &act2 ICICI Prudential was the &irst li&e insurer to invest in multiple channels and o&&er the customer choice and accessI thus reducing dependenc# on an# one channel2 great strides in the retirement solutions and pensions mar1et.The Compan#=s penetration o& the retirement mar1et was driven $# the &ocused approach towards creating awareness through sustained campaignI P,etire &rom
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Insurance as a Investment tools with regards to ULIP wor12 not li&e=. Fithin si" months2 the campaign rewarded ICICI Prudential with an increased share o& ')M o& the total pensions mar1et and B?M amongst private pla#ers. ICICI Prudential Li&eLs capital stands at ,s. )B.B' $illion 6as on <arch2 '44?7 with ICICI 0an1 and Prudential plc holding B-M and 'DM sta1e respectivel#. Eor the #ear ended <arch )12 '44?2 the compan# garnered ,etail New 0usiness Feighted premium o& ,s. D2D?- cores2 registering a growth o& D?M over the last #ear and has underwritten nearl# ) million retail policies during the period. The compan# has assets held over ,s. )42444 cores as on 5pril )42 '44?.ICICI Prudential Li&e is also the onl# private li&e insurer in India to receive a National Insurer Einancial Strength rating o& 555 6Ind7 &rom Eitch ratings. The 555 6Ind7 rating is the highest rating2 and is a clear assurance o& ICICI PrudentialLs a$ilit# to meet its o$ligations to customers at the time o& maturit# or claims. Eor the past seven #ears2 ICICI Prudential Li&e has retained its leadership position in the li&e insurance industr# with a wide range o& &le"i$le products that meet the needs o& the Indian customer at ever# step in li&e.
Company Profile*
ICICI Prudential Li&e Insurance Compan# is a %oint venture $etween ICICI 0an12 a premier &inancial powerhouse and Prudential plc2 a leading international &inancial services group head+uartered in the United 3ingdom. ICICI Prudential was amongst the &irst private sector insurance companies to $egin operations in *ecem$er '444 a&ter receiving approval &rom Insurance ,egulator# *evelopment 5uthorit# 6I,*57. !ision* To ma1e ICICI Prudential the dominant Li&e and Pensions pla#er $uilt on trust $# world class people and service. .ision2 <ission2 and /ualit# Polic# !ision*
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Insurance as a Investment tools with regards to ULIP To be the dominant Life and Pension player built on trust by world class people and service. This the# hope to achieve $#A • • • • • .alues • Customer EirstA Own CustomerI deliver the promise o 3eep customer interest in the centre o& all decisions. o Promise what #ou can2 deliver it to &inish. o Proactivel# see1 .oice o& Customer and act on it. • 0oundar# lessA Never sa# PIts not m# %o$= o O&&er help and support across &unctions to ensure $usiness success. o See1 and share ideas &reel# o ,ecogni(e and respect internal customers. o Understand and value contri$utions &rom colleagues. • OwnershipA I& it is to $e2 it is up to me o Ta1e responsi$ilit# and see tas1s through to completion. o Own mista1es2 learn &rom mista1es. o Pursue goals relentlessl#2 never give up. o 0e a team pla#er2 ta1e ownership &or team per&ormance. • PassionA 0oundless energ# and enthusiasm o !"hi$it PFinning Instinct=. o *emonstrate speed and urgenc# &or achieving results. o Challenge status +uo and do things di&&erentl#. o Nurture and motivate team mem$ers to reach &ull potential. • Integrit#A 0e honest and &air in what #ou sa# and do Page '' Understanding the needs o& customers and o&&ering them superior products and service Leveraging technolog# service customers +uic1l#2 e&&icientl# and convenientl# *eveloping and implementing super ris1 management and investment strategies to o&&er sustaina$le and sta$le returns to their polic#holders Providing an ena$ling environment to &oster growth and learning &or their emplo#ees 5nd a$ove all2 $uilding transparenc# in all their dealings.
BABASAB PATIL
Insurance as a Investment tools with regards to ULIP o Practice what #ou preach o Stand up honestl# and &earlessl# &or what is right o 5ct in a consistent and e+uita$le manner o Thin1 and act &or long term impact.
ICICI Prudential -ife Insurance ICICI Prudential Li&e Insurance Compan# is a %oint venture $etween ICICI 0an12 which is one o& IndiaLs &oremost &inancial services companies2 and Prudential plc2 which is a leading international &inancial services group head+uartered in the United 3ingdom. ICICI Prudential $egan the operations in *ecem$er '444. Toda#2 this compan# has over '144 $ranches2 which include 1211D micro o&&ices2 over 'C42444 advisors and 1? $anc assurance partners. ICICI Prudential Li&e Insurance Compan# is the &irst li&e insurer in India that received a National Insurer Einancial Strength rating o& 555 6Ind7 &rom Eitch ratings. ICICI Prudential has $een voted as IndiaLs <ost Trusted Private Li&e Insurer &or three consecutive #ears. ICICI Prudential Li&e Insurance Compan# has various insurance plans that have $een designed &or di&&erent individuals2 as ever# individual has di&&erent insurance needs. >iven $elow is a list o& plans provided $# ICICI Prudential Li&e Insurance Compan#A ST5>!S IN POLICJ ISSU5NC!
Proposal 5 Proposal Stage is the Eirst stage $e&ore the polic# is issued at COPS. 5t this stage2 the application &orm is received $# COPS2 $ut it is pending &or issuance due to &urther clari&ications re+uired &rom the customer.
Login 5 proposal2 which is complete i.e.2 dul# &illed with all necessar# documents BABASAB PATIL Page ')
Insurance as a Investment tools with regards to ULIP attached to it K accepted $# the 0ranch ops2 is called a Login ,e%ect 5n 5pplication gets re%ected at the 0ranch Ops level due to necessar# details not &illed in the &orm or necessar# documents not su$mitted are a ,e%ect. It is then sent $ac1 to the 5dvisor &or completion.
Issuance Issuance means a polic# that is issued to the Customer $# Central Ops.
*ecline Status Fhen a customer re&uses to ta1e a polic# post login $ut $e&ore Issuance is called a *ecline
Cancellation Fhen the che+ue given $# the customer $ounces2 it amounts to cancellation o& the polic#.
Lapse 5 polic# &or which the Customer &ails to pa# su$se+uent premiums is a Lapsed Polic#.
Eree loo1 Post issuance o& the polic#2 the polic#holder has the option to turn down the polic# within 1@ da#s &rom the date o& issuance. This period o& 1@ da#s is called Eree loo1 Period.
Surrender Fhen a customer wants to discontinue with the polic# it is called Surrender.
Top Ten thin+s to 0no. about -ife Insurance BABASAB PATIL Page '-
Insurance as a Investment tools with regards to ULIP Fe all recogni(e the importance o& li&e insurance. 5&ter all2 we want to ma1e sure that our loved ones are ta1en care o& when we die. 0ut $e&ore #ou run out and purchase a polic#2 do some research ahead o& time. That wa#2 #ouLll $e sure to get the $est possi$le coverage at the right price. 9ere are some help&ul tips to get #ou startedA Shop around Fhen it comes to li&e insurance2 it pa#s to shop around $ecause premiums can var# widel#. 5nd than1s to the Internet2 itLs now easier than ever. Tr# out one o& the man# insurance we$sites that can provide #ou with instant +uotes. <a1e sure the we$site #ou shop &rom ta1es into consideration the &actors in #our medical histor# that can a&&ect the premiums. Never buy more covera+e than you need The 1e# to purchasing the right amount o& li&e insurance is to have %ust enough coverage to meet #our needs. I& #ou have more li&e insurance than #ou need2 #ouLll $e pa#ing unnecessaril# &or higher premiums. On the other hand2 itLs important not to have too little coverage2 resulting in #ou $eing underinsured. The healthier you are6 the better the rates ItLs true – health# people get $etter rates on li&e insurance. Jou will $e as1ed to pa# a higher rate &or an#thing that shortens #our li&e e"pectanc# 6e.g.2 i& #ou smo1e2 ta1e medications regularl#2 are overweight2 have a $ad driving record7. 'uy sooner rather than later I& #ouLve $een putting o&& purchasing li&e insurance $ecause #ou donLt want to pa# the premiums2 #ou ma# $e doing #oursel& a disservice in the long run. The #ounger #ou are when #ou purchase li&e insurance2 the lower #our premiums will $e. $eali5e the importance of periodically revie.in+ your covera+e 5n# li&e change signals the need &or a review o& #our overall &inancial plan. Fhen it comes to li&e insurance coverage2 #ouLll want to ma1e sure that this ma%or li&e event 6e.g.2 $irth o& a child2 children are grown7 wonLt leave #ou underinsured or over insured. %ou don7t necessarily have to pay a commission One o& the reasons &or higher premiums is that most li&e insurance policies pa# BABASAB PATIL Page '@
Insurance as a Investment tools with regards to ULIP commissions to the agentG$ro1er. 9owever2 #ou ma# $e a$le to purchase a no load polic# through an insurer that sells no load policies directl# to consumers. %ou may be payin+ more for monthly premium payments Jou ma# not reali(e it2 $ut #ou ma# $e pa#ing more &or #our li&e insurance i& #ou pa# #our premium in monthl# installments. <an# insurance companies charge e"tra &ees i& #ou ma1e monthl# premium pa#ments instead o& pa#ing the annual premium. &on7t rely solely on the life insurance offered by your employer <an# emplo#ers o&&er their emplo#ees some sort o& group li&e insurance. 0ut this amount o& coverage is usuall# not enough to ade+uatel# meet #our li&e insurance needs. In addition2 group li&e insurance policies are not porta$le2 meaning that i& #ou leave #our %o$2 #ou canLt ta1e #our li&e insurance coverage with #ou. Tell the .hole truth and nothin+ but the truth I& #ouLre thin1ing a$out l#ing on #our insurance application2 thin1 again. I& #our insurance compan# &inds out that #ou lied a$out a health related condition or #our li&est#le 6e.g.2 smo1ing ha$it72 the# ma# $e a$le to terminate #our coverage.
'uyin+ more is sometimes cheaper Li&e insurance usuall# costs less per thousand dollars once #ou get into higher coverage amounts 6e.g.2 Q'@424447. I& the num$ers wor1 out2 #ou ma# $e a$le to pa# a lower premium while increasing #our coverage ICICI 'an0 ICICI 0an1 6NJS!AI0N7 is India=s second largest $an1 and largest private sector $an1 with over @4 #ears o& &inancial e"perience and with assets o& ,s. 1?1'.'B $illion as on )4th ;une2 '44@. ICICI 0an1 o&&ers a wide range o& $an1ing products and &inancial services to corporate and retail customers through a variet# o& deliver# channels and through its speciali(ed su$sidiaries and a&&iliates in the areas o& investment $an1ing2 li&e and non li&e insurance2 venture capital and asset management. ICICI 0an1 is a leading pla#er in the retail $an1ing
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Insurance as a Investment tools with regards to ULIP mar1et and has over 1) million retail customer accounts. The 0an1 has a networ1 o& over @B4 $ranches and e"tension counters2 and '2444 5T<s. Prudential plc !sta$lished in London in 1?-?2 Prudential plc2 through its $usinesses in the U3 and !urope2 the US and 5sia2 provides retail &inancial services products and services to more than 1D million customers2 polic#holder and unit holders worldwide. 5s o& ;une )42 '44-2 the compan# had over USQ)44 $illion in &unds under management. Prudential has $rought to mar1et an integrated range o& &inancial services products that now includes li&e assurance2 pensions2 mutual &unds2 $an1ing2 investment management and general insurance. In 5sia2 Prudential is the leading !uropean li&e insurance compan# with a vast networ1 o& 'li&e and mutual &und operations in twelve countries China2 9ong 3ong2 India2 Indonesia2
;apan2 3orea2 <ala#sia2 the Philippines2 Singapore2 Taiwan2 Thailand and .ietnam.
"ana+ement Profile* &irectors
3. .. 3amath2 Chairman BABASAB PATIL
Investment Committee
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Insurance as a Investment tools with regards to ULIP <ar1 Nor$om Lalita *. >upte 3alpana <orparia Chanda 3ochhar 9. T. Phong <. P. <odi ,. Nara#anan 3e1i *adiseth Shi1ha Sharma2 <anaging *irector N. S. 3annan2 !"ecutive *irector Sandeep 0atra2 Chie& Einancial O&&icer K Compan# Secretar# >overnance Committee Lalita *. >upte 9. T. Phong Shi1ha Sharma Lalita Chairperson 9. T. Phong Shi1ha Sharma N. S. 3annan .. ,a%agopalan Sandeep 0atra Puneet Nanda *. >upte2
$is0
"ana+ement
8
#udit Executive Committee
Shi1ha Sharma N. S. 3annan .. ,a%agopalan Sandeep 0atra 5nita Pai
Committee
<. P. <odi2 Chairman 9. T. Phong 3alpana <orparia
4rievance $edressal Committee ,. Nara#anan2 Chairman .. ,a%agopalan Sandeep 0atra 5nita Pai
9oint #uditors S. ,. 0atli$oi K Co. Chartered 5ccountants 9ari$ha1ti K Co. Chartered 5ccountants
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Insurance as a Investment tools with regards to ULIP
Promoterss
ICICI 0an1 Limited 6NJS!AI0N7 is IndiaLs largest private sector $an1 and the second largest $an1 in the countr# with consolidated total assets o& a$out USQ C@ $illion as o& <arch )12 '44C. ICICI 0an1=s su$sidiaries include India=s leading private sector insurance companies and among its largest securities $ro1erage &irms2 mutual &unds and private e+uit# &irms. ICICI 0an1=s presence currentl# spans 1C countries2 including India. Prudential !sta$lished in London in 1?-?2 Prudential plc is a leading internal retail &inancial services group with signi&icant operations in 5sia2 the US and the U3. Prudential has $een writing protection and savings insurance &or over 1D4 #ears2 and toda# has more than '1 million customers worldwide and over '-C $illion in assets under management 6as o& *ecem$er )12 '44?7. In 5sia2 Prudential is the leading !urope $ased li&e insurer with operations in China2 9ong 3ong2 India2 Indonesia2 ;apan2 3orea2 <ala#sia2 the Philippines2 Singapore2 Taiwan2 Thailand2 and .ietnam. Prudential is one o& the largest asset management companies in terms o& overall assets sourced in 5sia e" %apan2 with R)D.? $illion &unds under management 6as o& *ecem$er )12 '44?7 and operations in ten mar1ets including China2 9ong 3ong2 India2 ;apan2 3orea2 <ala#sia2 Singapore2 Taiwan2 .ietnam and United 5ra$ !mirates. The Compan# ICICI Prudential Li&e Insurance Compan# is a %oint venture $etween ICICI 0an12 a premier &inancial powerhouse2 and Prudential plc2 a leading international &inancial services group head+uartered in the United 3ingdom. ICICI Prudential was amongst the &irst private sector insurance companies to $egin operations in *ecem$er '444 a&ter receiving approval &rom Insurance ,egulator# *evelopment 5uthorit# 6I,*57. ICICI Prudential Li&eLs capital stands at ,s. -2B?4 crores 6as o& <arch2 '44C7 with ICICI 0an1 and Prudential plc holding B-M and 'DM sta1e respectivel#. Eor the period 5pril 12 '44? to <arch )12 '44C2 the compan# has posted a growth o& 1)M2 garnering total received premium 6new $usiness S renewal7 o& ,s 1@2)@D crores as against ,s 1)2@D) crores in BABASAB PATIL Page 'C
Insurance as a Investment tools with regards to ULIP EJ'44? and has underwritten over C million policies since inception. The compan# has assets held over ,s. )'2444 crores as on <arch2 '44C. ICICI Prudential Li&e is also the onl# private li&e insurer in India to receive a National Insurer Einancial Strength rating o& 555 6Ind7 &rom Eitch ratings. The 555 6Ind7 rating is the highest rating2 and is a clear assurance o& ICICI PrudentialLs a$ilit# to meet its o$ligations to customers at the time o& maturit# or claims. Eor the past eight #ears2 ICICI Prudential Li&e has retained its leadership position in the li&e insurance industr# with a wide range o& &le"i$le products that meet the needs o& the Indian customer at ever# step in li&e. INS $#NCE P$O& CT #N& SE$!ICE* ICICI Prudential=s ultimate promise is &inancial securit#. 5 strong $rand certainl# $oosts sale2 $ut without customer &riendl#2 innovative products2 even the $est $rand would not last long. ICICI Prudential=s product range has $een developed on the understanding that di&&erent people have their own sets o& needs at various stages o& their lives. It has thus $uilt a &le"i$le port&olio o& products that can $e customi(ed to cater to var#ing needs o& people at each stage2 and thus ensure protection in ever# step o& li&e. The compan#=s philosoph# has $een to help customers understand their &inancial needs and wor1 closel# with them to customi(e a product that would meet. 5dvisors can o&&er a complete range o& products – Savings plans2 Child plans2 <ar1et lin1ed plans2 Protection plans2 and ,etirement plans – and tailor a &le"i$le solution to meet customers= changing needs at ever# stage o& li&e. In &act2 ICICI Prudential was the &irst to un $undle product $ene&its2 pioneering the concept o& Priders= and soon a&ter introduce comprehensive mar1et lin1ed and retirement plans. ICICI Prudential has launched a hand&ul o& products that are anal#(ed $elowA ICICI PrudentialLs li&e insurance products ma# $e loosel# categori(ed under three &ormsA pure li&e insurance products without an investment angle to themI a product that is a mi" o& a cumulative investment scheme and an insurance productI and2 &inall#2 standard products such as mone# $ac1 and endowment policies.
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Insurance as a Investment tools with regards to ULIP
-ife Insurance Plans !ducation Insurance Plans Smart 3id New Unit lin1ed ,egular Premium Smart 3id New Unit lin1ed Single Premium Smart 3id ,egular Premium Fealth Creation Plans Fealth 5dvantage Li&eStage 5ssure Li&eTime >old Li&eLin1 Super Li&eStage ,P Premium >uarantee Plans InvestShield Li&e New InvestShield Cash0an1
Protection Plans Pure Protect Li&e >uard Save LnL Protect Cash0a1 9ome 5ssure ,etirement Solutions Li&e Stage Pension Li&eTime Super Pension Li&eLin1 Super Pension BABASAB PATIL Page )1
Insurance as a Investment tools with regards to ULIP EoreverLi&e Plan Immediate 5nnuit# 9ealth Coverage Plans 9ealth Saver <edi 5ssure 9ospital Care Crisis Cover Cancer Care *ia$etes Care 5ctive *ia$etes 5ssure ICICI Pru >roup Solutions 5dvantage >roup Super 5nnuation >roup >ratuit# Plan 5nnuit# Solutions >roup Term Insurance Plan >roup Term Insurance in lieu o& !*LI ,ural Plans ICICI Pru Sura1sha ICICI Pru Sura1sha 3avach <icro Insurance Plans ICICI Pru Sarv ;ana Plan P$O& CTS* Insurance Solutions &or Individuals ICICI Prudential Li&e Insurance o&&ers a range o& innovative2 customer centric products that BABASAB PATIL Page )'
Insurance as a Investment tools with regards to ULIP meet the needs o& customers at ever# li&e stage. Its products can $e enhanced with up to riders2 to create a customi(ed solution &or each polic#holder. Li&e Time >old is a unit lin1ed plan which o&&ers potentiall# higher returns over the long term with &le"i$le investment options to help #ou achieve #our goals. It o&&ers ? &und options Preserver2 Protector2 ,eturn >uarantee Eund2 0alancer2 Ele"i 0alanced
<ultiplier2 ,.I.C.9 and Ele"i >rowth. Li&e Stage ,P is unit lin1ed plan that provides #ou with an option o& li&ec#cle $ased port&olio strateg# that continuousl# re distri$utes #our mone# across various asset classes $ased on the customer=s pro&ile2 helping him achieve his desired &inancial goals. Li&eLin1 Super is a single premium unit lin1ed insurance which o&&ers attractive premium allocation along with the opportunit# to en%o# potentiall# high returns over the long term2 without compromising on the protection o& #our &amil#. Invest Shield Li&e New is a unit lin1ed plan that provides premium guarantee and allows the customer to en%o# the $en&its o& potentiall# higher returns while guaranteeing him that he will get $ac1 atleast all the premiums paid $# him2 while providing protection to #our &amil# with a li&e insurance cover. Invest Shield Cash$a1 is a unit lin1ed plan that provides premium guarantee while maintaing a $alance $etween return2 sa&et# K li+uidit#. Fealth 5dvantage s a uni+ue whole li&e single premium unit lin1ed plan that provides long term coverage upto the age o& B4 #ears and provides #ou the option to s#stematicall# withdraw #our mone#. Li&e Stage 5ssure a unit lin1ed insurance plan that provides >uaranteed <aturit# 5ddition o& 144M -@4M o& &irst #ear premium $ased on the term and num$er o& premiums paid2 with the additional advantage o& a li&ec#cle $ased port&olio strateg# that allocates the investor=s mone# across various asset classes $ased on his age and ris1 appetite BABASAB PATIL Page ))
Insurance as a Investment tools with regards to ULIP Protection Solutions Pure Protect is a &le"i$le and a&&orda$le term product2 with which #ou can ensure #our li&e and provide total securit# &or #our &amil# in case o& an un&ortunate event. Li&e >uard is a protection plan2 which o&&ers li&e cover at low cost. It is availa$le in ' options –level term assurance with return o& premium K single premium. 9ome 5ssure is a mortgage reducing term assurance plan designed speci&icall# to help customers cover their home loans in a simple and cost e&&ective manner Child Plans Smart 3id New UL,P The polic# is designed to provide mone# at 1e# educational milestones in the childLs li&e. Smart3id plans are also ,etirement Solutions Eorever Li&e is a traditional retirement product that o&&ers guaranteed returns &or the &irst - #ears. Li&e Time Super Pension is a regular premium unit lin1ed pension plan that helps one accumulate over the long term and o&&ers @ annuit# options 6li&e annuit#2 li&e annuit# with return o& purchase price2 %oint li&e last survivor annuit# with return o& purchase price2 li&e annuit# guaranteed &or @214 and 1@ #ears K &or li&e therea&ter2 %oint li&e2 last survivor annuit# without return o& purchase price7 at the time o& retirement. Li&e Stage Pension is a regular premium unit lin1ed pension plan that provides #ou with a uni+ue li&ec#cle $ased strateg# that continuousl# re distri$utes #our mone# across various asset classes $ased on #our age and ris1 pro&ile. Li&e Lin1 Super Pension is a single premium unit lin1ed pension plan. Immediate 5nnuit# is a single premium annuit# product that guarantees income &or li&e at the time o& retirement. It o&&ers the $ene&it o& @ pa#out options.
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Insurance as a Investment tools with regards to ULIP )ealth Solutions 9ospital Care is a &i"ed $ene&it plan covering various stages o& treatment – hospitali(ation2 ICU2 procedures K recuperating allowance. It covers a range o& medical conditions 6C44 surgeries7 and has a long term guaranteed coverage upto '4 #ears. Crisis Cover is a )D4 degree product that will provide long term coverage against )@ critical illnesses2 total and permanent disa$ilit#2 and death. *ia$etes Care 5ctive is a long term insurance polic# created &or individuals with T#pe II dia$etes and pre dia$etes. It o&&ers long term 6upto '4 #ears7 control over dia$etes through a speciall# designed Fellness Programme including regular health chec1ups and a *ia$etes Coach to &acilitate dia$etes management. It also provides #ou coverage against seven ma%or critical illnesses. Cancer Care is a regular premium plan that pa#s cash $ene&it on the diagnosis as well as at di&&erent stages in the treatment o& various cancer conditions. <edical 5ssure is a health insurance polic# that provides assured insura$ilit# till age B@ #ears2 assured coverage &or accepted pre e"isting illnesses a&ter ' #ears and an assured price &or ) #ears. 9ealth Saver provides comprehensive hospitali(ation cover and reim$urses all other medical e"penses $# $uilding a health &und. availa$le in traditional &orm (lexible $ider Options ICICI Prudential Li&e o&&ers &le"i$le riders2 which can $e added to the 0asic polic# at a marginal cost2 depending on the speci&ic needs o& The customer 5ccident K disa$ilit# $ene&itA I& death occurs as the result o& an accident during the term o& the polic#2 the $ene&iciar# receives an additional amount e+ual to the rider sum assured under the polic#. I& an accident results in total and permanent disa$ilit#2 14M o& rider sum assured will $e paid each #ear2 &rom the end o& the 1st #ear a&ter the disa$ilit# date &or the BABASAB PATIL Page )@
Insurance as a Investment tools with regards to ULIP remainder o& the $ase polic# term or 14 #ears2 whichever is lesser. I& the death occurs while traveling in an authori(ed mass transport vehicle2 the $ene&iciar# will $e entitled to twice the sum assured as additional $ene&it. Critical illness $ene&itA Critical Illness 0ene&it ,ider provides protection against C critical illnesses to the polic#holder when attached to the $asic plan. Faiver o& premiumA On total and permanent disa$lement due to accident all &uture premiums under the $ase plan will $e waived till the end o& the term o& the rider or death o& assured li&e2 i& earlier. Income $ene&it riderA In case o& death o& the Li&e 5ssured during the term o& the polic#2 14M o& the Sum 5ssured is paid annuall# to the nominee on each polic# anniversar# till the maturit# o& the rider.
#/#$&S #N& #C)IE!E"ENTS
ICICI Pru Life ranked as the Most Trusted Pvt Life Insurance brand in the Brand Equity "Most Trusted Brands 2009" survey
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Insurance as a Investment tools with regards to ULIP
ICICI Prudentia Life !on a "o d a!ard for #bout$LIP%&co' and (ea th %aver ca')ai*n+ innovation a!ard for !!!&ta,*uru0-.09&co' and a si ver a!ard for its Insurance yo*a ca')ai*n at the ICICI "rou) Marketin* E,ce ence a!ard&
Confederation of Indian Industry /CII0 . 1estern 2e*ion recent y a!arded ICICI Prudentia Life a 3Co''endation for %tron* Co''it'ent to (2 E,ce ence 200-3 at the CII (2 %u''it 200-&
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Insurance as a Investment tools with regards to ULIP
ICICI Prudentia Life Insurance !as a!arded !ith the coveted 3IC#I #!ard for E,ce ence in 4inancia 2e)ortin*3 by the Institute of Chartered #ccountants of India /IC#I0 for the financia year ended March 56+ 200-&
ICICI Prudentia Life !as a!arded the Life Insurance Co')any of the 7ear at the62th #sia Insurance Industry #!ards 200-&
ICICI Prudentia Life !as a!arded !ith t!o Bron8e Effie3s in the services cate*ory for its Cor)orate ca')ai*n and 2etire'ent 9u'ber ca')ai*n
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Insurance as a Investment tools with regards to ULIP
ICICI Prudentia Life Insurance !on the a!ard for the Best Life Insurer. 2unner u) at the :ut ook Money ; 9<T= Profit #!ards 200-
ICICI Prudentia Life !as a!arded the %#P #CE 200- Best Business :b>ects #!ard for its IT )ractices
ICICI Prudentia Life !on the #!ard for Brand E,ce ence in the Bankin* and 4inancia services cate*ory at the #sia Brand Con*ress 200-
Ms& %hikha %har'a+ M< ; CE:+ ICICI Prudentia Life Insurance Co& Ltd& !as ad>ud*ed the Business!o'an of the year at The Econo'ic Ti'es #!ards for
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Insurance as a Investment tools with regards to ULIP
Cor)orate E,ce ence+ 200?.0-&
ICICI Prudential Li&e won the U3 Trade K Investment India 0usiness 5wards '44? in the 0usiness Partnership 5ward Large Compan# categor#
ICICI Prudential Li&e won the ICICI >roup <ar1eting !"cellence 5ward '44? in three 1e# categories &or its mar1eting initiatives
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Insurance as a Investment tools with regards to ULIP
ICICI Prudential Li&e was awarded the IN*J=s 5ward &or !"cellence in <ass Communication in the categor# o& <ost Creative 5dvertisement Television
India3s Most Custo'er 2es)onsive Insurance Co')any& #vaya " oba Connect . Econo'ic Ti'es& Custo'er 2es)onsiveness #!ards+ 200?
Ms& %hikha %har'a+ M< ; CE:+ ICICI Prudentia Life Insurance !as ad>ud*ed as one of the @0 Most Po!erfu 1o'en in Business by The 4inancia E,)ress&
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Insurance as a Investment tools with regards to ULIP
Ms& %hikha %har'a+ M< ; CE:+ ICICI Prudentia Life Insurance !as ad>ud*ed the Entre)reneur of the 7ear.Mana*er at the Ernst and 7oun* Entre)reneur #!ards 200?
Ms& %hikha %har'a+ M< ; CE:+ ICICI Prudentia Life Insurance !as a!arded the :utstandin* Business!o'an of the 7ear at C9BC T=6-3s India Business Leader #!ards 200?
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ICICI Prudentia Life Insurance !on the a!ard for the Best Life Insurer. 2unner u) at the :ut ook Money ; 9<T= Profit #!ards 200?
ICICI Prudentia LifeAs+ retire'ent so utions ca')ai*n for the year 200B.0? !as a!arded the Bron8e Effy tro)hy in the services cate*ory& It a so !on the Brand Equity Bravery #!ard 200?+ instituted by #d c ub&
ICICI Prudentia LifeAs !ebsite+ !!!&icici)ru ife&co' !as a!arded the best !ebsite a'on* )rivate ife insurers at the 1eb 6- and 4rost ; %u ivan "enius of the 1eb #!ards 200? for co''endab e !ork in the on ine&
Innovation #!ard for aunchin* <iabetes Care C Prudence #!ard 200B& Peo) e #!ard for e,ce ence in trainin* and )eo) e deve o)'ent . Prudence #!ard 200B
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Insurance as a Investment tools with regards to ULIP
India3s Most Custo'er 2es)onsive Insurance Co')any& #vaya " oba Connect . Econo'ic Ti'es& Custo'er 2es)onsiveness #!ards
Most Trusted Private Life Insurer& The Econo'ic Ti'es . # C 9ie sen %urvey of Most Trusted Brands C 2005+ 200D and 200@
Prudence Custo'er Centricity #!ard 200D ; 200@& Prudentia Cor)oration #sia
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Insurance as a Investment tools with regards to ULIP
0est Li&e Insurer '44). Outloo1 <one# 5wards '44) K '44-
I<< 5ward &or !"cellence. Institute o& <ar1eting K <anagement
Organi(ation with Innovative 9, Practices Indira >roup o& Institutes
Super$rand '44) 4-
Organi(ation with Innovative 9, Practices 5sia Paci&ic 9 , Congress 5wards &or 9, BABASAB PATIL Page -@
Insurance as a Investment tools with regards to ULIP
!"cellence
Silver !&&ie &or !&&ectiveness o& the P,etire &rom For1 not li&e= advertising campaign !&&ies '44)
Recognitions
ICICI Prudential Li&e was recogni(ed as the most trusted $rand amongst private li&e insurers in the !conomic Times <ost Trusted 0rand surve# '44?.
I<< 5ward &or !"cellence. Institute o& <ar1eting K <anagement
Organi(ation with Innovative 9, Practices. Indira >roup o& Institutes
:r*ani8ation !ith Innovative (2 Practices& #sia.Pacific ( 2 Con*ress #!ards for (2 E,ce ence #chievements
0eginning operations in *ecem$er '4442 ICICI Prudential=s success has $een meteoric2 $ecoming the num$er one private li&e insurer within months o& launch. Toda#2 it has one o& the largest distri$ution networ1s amongst private li&e insurers in India2 with $ranches in @-
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Insurance as a Investment tools with regards to ULIP cities. The total num$er o& policies issued stands at more than B?42444 with a total sum assured in e"cess o& ,s.1D4 $illion. ICICI Prudential closed the &inancial #ear ended march )12 '44- with a total received premium income o& ,s. C.C $illionI up 1)@M last #ears total premium income o& ,s.-.'4 $illion. New $usiness premium income shows a 14DM growth at ,s. B.@ $illion2 driven mainl# $# the compan#=s range o& uni+ue unit lin1ed policies and pension plans. The compan#=s retail mar1et share amongst private companies stood at )DM2 ma1ing it clear leader in the segment. To add to its achievements2 in the #ear '44)G4- it was ad%udged <ost Trusted Private Li&e Insurer 6!conomic Times P<ost Trusted 0rand Surve#= $# 5CNeilsen O,> <5,>7. It was also con&erred the POutloo1 <one# 0est Li&e Insurer= award &or the second #ear running. The compan# is also proud to have won Silver at !EEI!S '44) &or its P,etire &rom wor12 not li&e= campaign. Nota$l#2 ICICI Prudential was also short listed to the &inal round &or its PSindoor campaign in !EEI!S '44'. In 3eeping with its $elie& that a happ# customer is the $est endorsement2 ICICI Prudential has em$raced the PSIO SI><5= approach to +ualit#2 an e"ercise that $egins and ends with the customer &rom capturing his voice to measuring and responding to his e"periences. This initiative is currentl# helping the compan# improve processes2 turnaround times and customer satis&action levels. 5nother Novel introduction is the ICICI Prudential Li&est#le ,ewards Clu$2 India=s &irst rewards programme &or Li&e 5dvisorsI it allows ICICI Prudential 5dvisors to redeem points &or items ranging &rom 1itchenware to gold2 white goods2 and even international holida#s.
Or+ani5ational chart*
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Insurance as a Investment tools with regards to ULIP
Samplin+ o &ata collection method o Instrumentation techni:ues o -earnin+ experience
S#"P-IN4*3
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Insurance as a Investment tools with regards to ULIP Sample si(e Sampling <ethod Sample Plan Sample Unit A 144 respondents A ,andom sampling A Personal Interview A ,espondents in 9u$li cit#
Surve# conducted on >eographic $ases. !ver# decision poses uni+ue needs &or in&ormation2 and relevant strategies can $e developed $ased on the in&ormation gathered through research. ,esearch is the s#stematic o$%ective and e"haustive search &or and stud# o& &acts relevant to the pro$lem. ,esearch design means the &ramewor1 o& stud# that leads to the collection and anal#sis o& data. It is a conceptual structure with in which research is conducted. It &acilitates smooth sailing o& various research operations to ma1e the research as e&&ective as possi$le. The stud# was conducted as an e"plorator# sampling surve# method to collect primar# and secondar# data.
&#T# SO $CE*
P,I<5,J SOU,C! OE *5T5A Primar# data are those collected $# the investigator himsel& &or the &irst time and thus the# are original in character2 the# are collected &or a particular purpose. 5 well structured +uestionnaire was personall# administrated to the selected sample to collect the primar# data. S!CON*5,J SOU,C! OE *5T5A Secondar# data are those2 which have alread# $een collected $# some other persons &or their purpose and pu$lished. Secondar# data are usuall# in the shape o& &inished products. Two t#pes o& secondar# data were collected &or the preparation o& the pro%ect wor1A Internal *ata was generated &rom compan#=s $rochures2 manuals and annual reports. BABASAB PATIL Page @4
Insurance as a Investment tools with regards to ULIP !"ternal *ata2 on the other hand2 was generated &rom research $oo1s and internet 6we$sites7.
S#"P-IN4 TEC)NI; ES
5 sample is a representative part o& the population. In sampling techni+ue2 in&ormation is collected onl# &rom a representative part o& the universe and the conclusions are drawn on that $asis &or the entire universe. 5 random sampling techni+ue was used to collect data &rom the respondents. 5 random sample is a sample selected &rom a population in such a wa# that ever# mem$er o& the population has a e+ual chance o& $eing selected and the selection o& an# individual does not in&luence the selection o& an# other. The selection is purel# depends on chance. So while conducting the surve#2 144 respondents were selected at random. S5<PL! SIT! Sample si(e denotes the num$er o& elements selected &or the stud#. Eor the present stud#2 144 respondents were selected at random<
INST$ "ENT#TION TEC)NI; ES*
To 1now the response2 the researcher used +uestionnaire method. It has $een designed as a primar# research instrument. /uestionnaires were distri$uted to respondents and the# were as1ed to answer the +uestions given in the +uestionnaire. The +uestionnaires were used as an instrumentation techni+ue2 $ecause it is an important method o& data collection. The success o& the +uestionnaire method in collecting the in&ormation depends largel# on proper dra&ting. So in the present stud# +uestions were arranged and interconnected logicall#. The structured +uestionnaire will reduce $oth interviewers and interpreters $ias. Eurther using SPSS so&tware and anal#sis was done &or each +uestion=s response to reach into &indings2 suggestions and &inall# to the conclusion a$out the topic.
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Insurance as a Investment tools with regards to ULIP Learning e"perience The environment in which the company operates is that of a highly competitive energetic atmosphere. And as a fresher that is an excellent start to begin ones corporate experience especially in the service sector (life insurance) with. This inplant training has provided a vital learning element in the career of freshers. As it has enabled us to realize most of the classroom training obtained so far in a real life corporate environment. And so there has been a link developed between theory and practices. Through this inplant training students can experience the kind of break that awaits us in the corporate world. This exercise also gets us to understand the amount of dedication and determination that professionals would have to put in, in their every day’s work because the decisions they take is a matter of loss or profit for the company. And mista1es are generall# not entertained in the +ualit# circles. The study also enlightened us with the amount of togetherness the staff of ICICI Prudential have as an expandable family in their working culture . This is enumerated with all the employees taking mentioning interest in sharing their colleague’s problems either physical or mental in comforting them, as would normally happen in a family set up.
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Insurance as a Investment tools with regards to ULIP
17 >ender
Ere+uenc# Percent .alid Percent .alid <ale Eemale Total CD =>> C-.4 D.4 =>><> C-.4 D.4 =>><>
Cumulati ve Percent C-.4 144.4
gendor
female
male
InterpretationA 5ccording to our pro%ect surve# we have come to now the out o& 144 responds in that C-M are male and DM &emale. There&ore male are more than &emale in 9u$li cit#.
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Insurance as a Investment tools with regards to ULIP
'7 Occupation (re:uen Percent !alid Cumulati cy Percent ve Percent 14 14.4 14.4 14.4 1-.4 '@.4 @1.4 =>><> 1-.4 '@.4 @1.4 =>><> '-.4 -C.4 144.4
!alid
business man professional 1s student '@ Others Total @1
=>>
occupation
business man
proffesional
others
student
InterpretationA 5ccording to our pro%ect surve# we &ind $usiness men 14M2 pro&essional 1-M2student '@M2 and then others are @1M. It will indicates that others are more compare to $usiness men2 pro&essional and student
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Insurance as a Investment tools with regards to ULIP
)7 /hich of these are important .hile choosin+ life insurance? (re:uency Percen !alid Cumulati t Percent ve Percent investme ? ?.4 ?.4 ?.4 nt security 1@ [email protected] [email protected] ').4 savin+s 11 11.4 11.4 )-.4 Tax ? ?.4 ?.4 -'.4 benefits returns 'B 'B.4 'B.4 DC.4 financial )1 future need Total =>> )1.4 )1.4 144.4
!alid
=>><> =>><>
which of these are important whie choosing life insurance
investment
financial future nee
security
savings
tax benefits returns
Interpretation*
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Insurance as a Investment tools with regards to ULIP 5ccording to our pro%ect surve# out o& 144 respondent2 ?M investment2 1@M securit#211M savings2?M ta" $ene&its2'BM returns2 )1M &inancial &uture need. It suggests that more people are choice insurance &or &inancial &uture needs.
@2 In .hich company you have invested (re:uency Percent !alid Cumulativ Percent e Percent )C )C.4 )C.4 )C.4 @1.4 '.4 B.4 1.4 =>><> @1.4 '.4 B.4 1.4 =>><> C4.4 C'.4 CC.4 144.4
!alid
-IC ICICI Prudenti @1 al $eliance insuranc ' e 'ajaj B #llian5As if any 1 other Total =>>
in which company you have invested
if any other bajaj allianzas Reliance insurance
LIC
ICICI Prudential
Interpretation*
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Insurance as a Investment tools with regards to ULIP 5ccording to our pro%ect surve# out o& 144 respondent )CM invest in LIC2 @1M invest in ICICI Prudential li&e insurance2 'M invest in ,eliance insurance2 BM invest in 0a%a% 5llian(=s and 1M o& respondent other companies B2 )o. did you come to 0no. the life insurance? (re:uency !alid T<!< #dvertisement ) Ne.s paperCma+a5inesA Company advisor1a+ent2 reference1friends relatives2 if any other Total D1 'D D =>> Percent ).4 -.4 D1.4 'D.4 D.4 =>><> !alid Cumulative Percent Percent ).4 -.4 D1.4 'D.4 D.4 =>><> ).4 B.4 D?.4 C-.4 144.4
how did you come to know the life insurance
if any other reference friends re "#$# %dvertisement new s paper!magzines
company advisor agen
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Insurance as a Investment tools with regards to ULIP Interpretation* 5ccording to our pro%ect surve# out o& 144 respondent people get the in&ormation )M on T...advertisement2 -M on news paper and maga(ines2D1M compan# advisors2 'DM re&erence6 &riends and relatives7. 5ccording to our pro%ect surve# shows that more people get in&ormation &rom compan# advisors. D2 are you a.are of -IP in ICICI Prudential life insurance? (re:uency Percen !alid Cumulati t Percent ve Percent BB-.4 B-.4 B-.4 ''-.4 '.4 =>><> '-.4 '.4 =>><> C?.4 144.4
.alid
%es No
Not ' respond Total =>>
are aware of &LIP in ICICI Prudential life insurance
not respond no
yes
InterpretationA
5ccording to our pro%ect surve# out o& 144 respondent2 awareness o&
ULIP in ICICI Prudential li&e insurance is B-M2 and non awareness o& ULIP is '-M2 and not respondents are 'M.it indicates that awareness o& ICICI Prudential is more. BABASAB PATIL Page @?
Insurance as a Investment tools with regards to ULIP
B7 If yes6 .hich insurance plan .ould li0e to invest in ICICI Prudential life insurance? (re:uency Percen !alid Cumulati t Percent ve Percent '4 '4.4 '4.4 '4.4 1B.4 )C.4 1.4 ').4 =>><> 1B.4 )C.4 1.4 ').4 =>><> )B.4 BD.4 BB.4 144.4
!alid
Smart 0id lifetime 1B +old retireme )C nt solution if other1 specify Not ') respond Total =>>
if yes' which insurance plan would like to invest in ICICI Prudential l
(ot respond smart kid
if other specify
lifetime gold
retirement solution
Interpretation A 5ccording to our pro%ect surve# out o& 144 respondent '4M respondents li1e to invest smart 1id2 1BM li&etime gold2 )CM retirement solution2 1M respondents li1e to
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Insurance as a Investment tools with regards to ULIP invest rest o& the plans2 ')M not respondents2 according to our surve# people would li1e to invest more in retirement solution plan.
E2 /hat factor consider .hile ma0in+ the -IP in ICICI
)re*uency Percent $alid Percent $alid flexibility + security -returns /0
-/ )ull withdraw al .0 (ot respond "otal 100 +#, --#, /0#, -/#, +#, --#, /0#, -/#,
Cumulat ive Percent
+#, .,#, 10#, 22#,
.0#,
.0#,
-,,#,
100.0
100.0
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Insurance as a Investment tools with regards to ULIP
what factor consider while making the &LIP in ICICI
flexibility not respond security
full w ithdraw al
returns
InterpretationA 5ccording to our pro%ect surve# out o& 144 respondents CM considered &or ma1ing ULIP is &le"i$ilit#2 11M considered &or securit#2 -)M &or returns 1-M &or &ull withdrawals and ')M not respondent It shows people considered ULIP &or the purpose o& returns. C7 /hich premium payment method you have opted for
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Insurance as a Investment tools with regards to ULIP
)re*uency $alid yearly half yearly *uartely monthly not responden t "otal .3 0/ + 1 .0 -,,
Percent .3#, 0/#, +#, 1#, .0#, -,,#,
$alid Cumulativ Percent e Percent .3#, .3#, 0/#, 1.#, +#, 2-#, 1#, 22#, .0#, -,,#, -,,#,
which preimum payment method you have opted for
not respondent yearly
monthly
*uartely
half yearly
Interpretation* 5ccording to our pro%ect surve# out o& 144 respondent '?M opted &or #earl#2 )-M hal& #earl#2 CM +uarterl# and remaining DM &or monthl#. It will indicates more people opted &or investment premium pa#ment method &or hal& #earl# $asis. 142 )o. much ris0 involved in -IP (re:uency Percen !alid BABASAB PATIL Cumulati Page D'
Insurance as a Investment tools with regards to ULIP t !alid -o. @ @.4 -4.4 )'.4 ').4 =>><> Percent ve Percent @.4 -4.4 )'.4 ').4 =>><> @.4 [email protected] BB.4 144.4
avera+e -4 )i+h )' Not ') respond Total =>>
how much risk involved in &LIP
low not respond
average
high
Interpretation* 5ccording to our pro%ect surve# out o& 144 respondent ris1 involved in ULIP @M said low ris12 -4M said average2 )'M said high ris1 and ')M not responded &or ULIP. It indicates that ris1 in ULIP average2 its depend upon the mar1et condition.
==2 /hat is the premium you are payin+ per annum?
Ere+uenc Percent # BABASAB PATIL
.alid Percent
Cumulati ve Page D)
Insurance as a Investment tools with regards to ULIP Percent )).4 DD.4 B).4 BD.4 144.4
.alid
14444 14444 '@444 '@444 @4444 @4444 144444 Not respond Total
)) )) B ) '144
)).4 )).4 B.4 ).4 '-.4 144.4
)).4 )).4 B.4 ).4 '-.4 144.4
what is the premium you are paying per annum
not respond -,,,,
4,,,,5-,,,,,
.4,,,54,,,,
-,,,, 5.4,,,
Interpretation* 5ccording to our pro%ect surve# out o& 144 respondent ))M people pa# 14444 per annum2 BM people pa# 14444 '@444 per annum2 )M people pa# @4444 144444 per annum and rest o& '-M peoples not respond =F2 In future .ould li0e to invest in
(re:uency Percent!alid Cumulati Percent ve Percent BABASAB PATIL Page D-
Insurance as a Investment tools with regards to ULIP !alid insurance D) mutual B fund E:uity @ Share 11 mar0et investin+ in1 +old 'an0 1) deposits Total 144 D).4 B.4 @.4 11.4 1.4 1).4 144.4 D).4 B.4 @.4 11.4 1.4 1).4 144.4 D).4 B4.4 [email protected] ?D.4 ?B.4 144.4
in future would like to invest in
bank deposits investing in gold share market
e*uity insurance mutul fund
Interpretation* #ccording to our pro%ect surve# out o& 144 respondent D)M people invest in insurance2 BM people invest in mutual &unds2 @M people invest in invest in e+uities2 11M people invest in share mar1et2 1M people invest in gold and remaining 1)M invest in $an1 deposits. It shows that in &uture more people interested to invest in insurance. =G2 #re you satisfied .ith the performance of the insurance? -IP in ICICI Prudential life
(re:uenc Percen !alid Cumulati y t Percent ve Percent BABASAB PATIL Page D@
Insurance as a Investment tools with regards to ULIP !alid )i+hly @? satisfied satisfied )) moderate ? )i+hly 1 dissatisfied Total =>> @?.4 )).4 ?.4 1.4 =>><> @?.4 )).4 ?.4 1.4 =>><> @?.4 C1.4 CC.4 144.4
are you satisfied with the performance of the &LIP in ICICI Prudential l
highly dissatisfied moderate
satisfied higly satisfied
Interpretation* #ccording to our pro%ect surve# out o& 144 respondent satis&action o& ULIP in ICICI Prudential is @?M respondents are highl# satis&ied2 ))M respondents are onl# satis&ied2 ?M respondents are moderate and rest o& 1M respondents highl# dissatis&ied. It indicates that per&ormance o& ULIP in ICICI prudential according to respondent is highl# satis&ied . 1-7 #re you satisfied .ith the advisor of ICICI Prudential life insurance? (re:uency Percen !alid Cumulati t Percent ve Percent excellent @? @?.4 @?.4 @?.4 4ood 'B 'B.4 'B.4 [email protected]
!alid
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Insurance as a Investment tools with regards to ULIP avera+e 1@ Total 144 [email protected] 144.4 [email protected] 144.4 144.4
are you satisfied with the advisor of ICICI Prudential life insurance
average
good
excellent
Interpretation* 5ccording to our pro%ect surve# out o& 144 respondent satis&action o& advisors wor1 is @?M respondents sa#s e"cellent2 'BM respondents sa#s good2 1@M respondents sa#s average6medium7.
1@7 Satisfied level to.ards -IP in ICICI Prudential life insurance
!alid
)i+hly satisfied satisfied -1
(re:uenc Percent !alid Cumulati y Percent ve Percent @) @).4 @).4 @).4 -1.4 -1.4 C-.4 Page DB
BABASAB PATIL
Insurance as a Investment tools with regards to ULIP neither ) satisfied or dissatisfi ed dissatisfi ) ed Total 144 ).4 ).4 CB.4
).4 144.4
).4 144.4
144.4
satisfied level towards &LIP in ICICI Prudential life insurance
dissatisfied neither satisfied or
satisfied
highly satisfied
Interpretation* 5ccording to our pro%ect surve# out o& 144 respondent levels o& satis&action a$out ULIP @)M people are highl# satis&ied2 -1M onl# satis&ied2 )M neither satis&ied or dissatis&ied and rest o& )M peoples are dissatis&ied.
O'SE$!#TION 1. It was &ound that C-M male and 1DM &emale are participating in our surve#. '. It was &ound that occupation o& respondents is $usiness man 14M2 pro&essional2 1-M2student '@M and others are @1M BABASAB PATIL Page D?
Insurance as a Investment tools with regards to ULIP ). It was &ound that the peoples choice o& insurance2 is investment is ?M2 securit# 1@M2savings 11M2ta" $ene&its ?M2 returns 'BM2 and &inancial &uture need is )1M2 it shows that the people thin1 more &or &inancial &uture needs. -. It was o$served that peoples are interested to invested in )CM in LIC2 @1M in ICICI2 'M in ,eliance2 BM in 0a%a 5llian( and rest o& the peoples other
companies i.e. 0irla sun li&e2 9*EC2 IN> .JSJ5 etc. it indicates that more peoples are interested to invest in ICICI Prudential li&e insurance compan#. @. It was &ound that people get the in&ormation is )M on T...advertisement2 -M on news paper and maga(ines2D1M compan# advisors2 'DM re&erence6 &riends and relatives7 it shows that people get more in&ormation &rom compan# advisors. D. awareness o& ULIP in ICICI Prudential li&e insurance is more B-M2
$ecommendations*3
Eor ICICI to have a larger mar1et share it has to widen the customer $ase2 so it should come up with intensive mar1et strateg# and aggressive pu$licit# stunts such asA *eplo#ment o& addition sales &orce &or proper mar1eting. BABASAB PATIL Page DC
Insurance as a Investment tools with regards to ULIP Continuous $om$ardment o& 5dvertisement $# ICICI Prudential as a Li&e Insurance Compan# &or a common man as well as &or well educated and good salaried people. 9oardings in and around the important areas6pu$lic concentrated areas7 The compan# should concentrate on the people aged $etween 1? '@ &or individual and also the age categor# )@ @@ &or &amil#. Since individuals are interested in insuring their &amil# mem$ers the compan# should concentrate on insuring the individual=s &amil# mem$ers. ICICI Prudential should concentrate on geographical areas &or its e"pansion and to penetrate through rural areas it should tie up with rural $an1s such as <.>.0an1 etc. )-M respondents would li1e to pa# hal& #earl# premium. The compan# should also emphasis on #earl# pa#ment o& premium Top o& mind insurance compan# is LIC2 $ecause o& its trust what people 1eep in it and its awareness. So ICICI Prudential should emphasis heav# advertisement. )1M respondents would li1e to invest mone# in insurance &or &inancial &uture need. So ICICI to provide di&&erent &inancial &uture satis&action plans to the people.
Conclusion
To conclude2 the surve# results highlight some important &acts2 though ICICI Prudential ma# $e comparativel# competitive with other companies ULIP. The choice o& people investing in insurance is more as )1M and awareness o& ICICI Prudential ULIP is more as B-M2 D1M people get in&ormation &rom compan# advisors and satis&action level o& ULIP is more as @)M it will shows that ULIP is grow more in &uture da#s.
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Insurance as a Investment tools with regards to ULIP
o ;uestionnaire o 'iblio+raphy
; ESTIONN#I$E
=2 Name* HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH F2 #+e* HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH "ale (emale Page B1
G2 4ender*
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Insurance as a Investment tools with regards to ULIP
@2 Occupation* 'usiness man Student
Professional Others HHHHHHHHHHHHHHHHHH
B2 #nnual Income* 'elo. 8 =6>>6>>> G6>>6>>> , @6>>6>>>
=6>>6>>> , F6>>6>>> B6>>6>>> 8 #bove
D2 #ddress* HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH I2 Contact number* HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
E7 /hich of these are important .hile choosin+ the life insurance? Investment Ta" 0ene&its Securit# ,eturns Savings Einancial Euture need
J2 In .hich company you have invested? a7 LIC $7 ICICI Prudential c7 ,eliance insurance d7 <a" New Jor1
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Insurance as a Investment tools with regards to ULIP e7 0a%a% 5lian(as 5n# other UUUUUUUUUUUUUUUUUU =>2 )o. did you come to 0no. the life insurance? T...5dvertisement News paper G <aga(ines Compan# advisors 65gents7 ,e&erence 6Eriends ,elatives7 I& an# otherUUUUUUUUUUUUUUUUUUUU
=G2 #re you a.are of -IP in ICICI Prudential life insurance? 1If no +o to =J;2
Jes
No
=@2 If yes6 .hich insurance plan .ould li0e to invest in ICICI prudential? Smart 1id ,etirement solution Li&etime >old I& other speci&#UUUUUUUUU
=B2 /hat factors consider .hile ma0in+ the -IP in ICICI a7 Ele"i$ilit# c7 ,eturns BABASAB PATIL $7 securit# d7 &ull withdrawal Page B)
Insurance as a Investment tools with regards to ULIP
I& an# otherUUUUUUUUUUUUUUUUUUUUU =D2 /hich premium payment method you have opted for< Jearl# /uarterl# 9al& #earl# <onthl#
=I2 )o. much ris0 involved in -IP< Low average high No ris1
=E2 /hat is the premium you are payin+ per annum? a7 14444 c7 '@444 @4444 $7 14444 '@444 d7 @4444 144444
=J2 In future you .ould li0e to invest in? Insurance Share mar1et <utual &und investing in gold !+uit# 0an1 *eposits
F>2 #re you satisfied .ith the performance of the -IP in ICICI prudential? UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU 9ighl# Satis&ied F=2 #re you satisfied .ith the advisor service in ICICI prudential? UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU BABASAB PATIL Page BSatis&ied <oderate *issatis&ied 9ighl# *issatis&ied
Insurance as a Investment tools with regards to ULIP
!"cellent
>ood
5verage
0ad
vast
FF2 Satisfied level to.ards -IP s in ICICI prudential? UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU 9ighl# Satis&ied Satis&ied nether satis&ied or dissatis&ied *issatis&ied 9ighl# dissatis&ied
KThan0 you for your co3operationL
'iblio+raphy
=< ...<iciciprulife<com F< ...<+oo+le<com G< ...<insurance<com
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