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PROJECT REPORT
ON

“RETAIL PRODUCTS”
AT

(SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF MASTER’S OF BUSINESS ADMINISTRATION)

SUBMITTED BY: REKHA HOODA B.Com Final (Voc.)

UNDER THE GUIDANCE OF: Mr. Satpal Wadhwa

GOVT. COLLEGE FOR WOMEN, ROHTAK

INDEX
S.No.
1. 2. 3. 4. 5. 6.

Particulars
Acknowledgement Executive Summary Introduction of the company Objective of the study Products offered by the company Comparison with other Insurance companies • • • • • •

Page No.
3 5 7-14 15 17-39 40 41-44 45-47 48-49 50-53 54-55 56-58 59-62 63-67 68 70 72

HDFC Standard Life Insurance OM Kotak Mahindra Life Insurance TATA AIG Life Insurance LIFE INSURANCE CORPORATION STATE BANK OF INDIA AVIVA Life Insurance

7. 8. 9. 10. 11.

Research Methodology Analysis & Interpretations Conclusion Suggestions Limitations

12.

Bibliography

74

ACKNOWLEDGEMENT
I express my sincere gratitude to ICICI Pru Life insurance and its entire staff for giving me this wonderful opportunity to work and get to know more about the Insurance Industry in general and pension market in particular. With deep sense of gratitude I express my indebtedness to my mentor and guide Miss Deepti Kaushik (UM), ICICI Pru Life Insurance, Rohtak. He has been a great source of inspiration. I thank him for his keen interest and valuable guidance. He was also kind to discuss the problems faced during the course of this project.

(REKHA)

EXECUTIVE SUMMARY
ICICI Prudential Life Insurance co. is the biggest private life insurer in the world. In the first step is explained all the insurance products offered by ICICI Prudential. I have chosen the Pension plan as they give twin advantage of saving and life cover. In this project I have covered the Pension plan of ICICI with that of other insurance companies. These companies are from private sector. There are HDFC Standard, Allianz Bajaj, Tata AIG, AVIVA Life Insurance and Birla Sun Life. The company that I have chosen from the public sector is life insurance corporation (LIC), STATE Bank of India. First the Pension plan of ICICI Prudential is explained then a comparison is done between features of product offered by different players in the insurance industry and that offered by ICICI Prudential. A thorough analysis of product being offered by these insurance companies, benefits being provided and other terms and conditions is done. The prime objective of the study is to compare the life insurance policies on the basis of benefits provided.

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

Year of review 2003-2004:
ICICI Prudential has consolidated its position as the leading private life insurer in India. ICICI Prudential's annualized premium grew more than three fold over the previous year. Continuing with its 'Customer First' philosophy, ICICI Prudential has significantly expanded its presence to 29 operational Branches (2001-2002: 16), with the Advisor

Force growing to over 18,000. Its has also strengthened its Alternate Distribution channels, i.e. Banc assurance, Corporate Agents and Direct Marketing, making purchase of insurance more accessible. Banc assurance and Direct Marketing channels have contributed to over 18% of the Annualized Premium.

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

A summary of the financial performance of ICICI Prudential Life Insurance is as follows ( Rupees. in million ) Particulars for the period ended March 31, 2003 2006 Premium Income Other Income Total Income Expenditure Net Profit/(Loss) Share Capital 4176.00 120.60 4424.00 8.63 (1471.82) 4250.00 2007 1163.00 220.71 1193.71 11.07 (1050.98) 1900.00

Overview

ICICI Bank is India's second-largest bank with total assets of about Rs.1, 67,659 crore at March 31, 2005 and profit after tax of Rs. 2,005 crore for the year ended March 31, 2005 (Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network of about 560 branches and extension counters and over 1,900 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As required by the stock exchanges, ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. At April 4, 2005, ICICI Bank, with free float market capitalization* of about Rs. 308.00 billion (US$ 7.00 billion) ranked third amongst all the companies listed on the Indian stock exchanges. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was

its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly feebased services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the

Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. Shareholders of ICICI and ICICI BANK approved the merger in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

PROMOTERS
ICICI BANK
ICICI Bank is India’s second largest bank with total assets of about Rs. 112,024 crore and a network of about 450 branches and offices about 1750 ATMs. It offers a wide range of banking products and financial services to corporate retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital, asset management and information technology. ICICI Bank posted a net profit of Rs. 1,637 crore for the year ended March 31, 2004. ICICI Bank’s equity shares are listed in India on exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

PRUDENTIAL PLC
Established in London in 1848, Prudential Plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policyholder and unit holders worldwide. As of June 30, 2004, the company had over US $ 300 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life insurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries – China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

OBJECTIVES OF THE RESEARCH STUDY
Panipat being the hub of the financial network in Haryana consists of a large number of financial institutions. The purpose of the project in the first place was to study the various pension plans provided by the different insurance companies. Further to study and compare the plans and bring out differences. Also to make a ready reckoner of the same for the advisors and unit managers.

The main objectives of the research study were as follows: • • To gain an insight into the entire gamut of the pension market. This comparative study would help in assessing the product features of other pension provider and their strategy towards creating customers for the product.

This study would also helped in knowing the potential market for the product and also how to have a competitive edge over the other players in the market by stressing on to the key areas of the product

PRODUCTS OFFERED BY THE ICICI PRUDENTIAL

• Life Time Super • Life Time Super Pension • Life Time Plus • Life Link Super • Life Guard • Premier Life Gold • Save ‘n’ Protect • Smart Kid a) Smart Kid (RP) b) Smart Kid (SP) • Cancer Care

A regular premium unit-linked insurance policy that offers power-packed features coupled with flexible investment options along with the benefit of life insurance cover.

Lifetime as a product works as a one stop wholesome financial solution for the customer for their lifetime, a product that gives the customers the control and flexibility to use it according to differing needs at their different life stages with different human life values.

Life Time is: • A Regular premium product that has the option of the yearly, half – Yearly and monthly modes. • An insurance product that works in the form of units, which are issued to the policyholder depending upon the unit value and investment done in the form of premium. • An insurance product where the three riders are attached namely ADB, MSA and CI. • An insurance product where the Death benefit is a multiple of the annual premium paid.

Death Benefit: Death benefit would be a multiple of the yearly premium. The policyholder has the flexibility to choose the death benefit. The maximum limits of death benefit can be found out from a table that gives the multiple for different combinations of age and life cover opted by policyholder.

Flexibility Options: Increase in Death Benefit: The policyholder has the flexibility to increase the death benefit by 25% subject to a maximum of Rs. 1,00,000 every time. The death benefit can also be increased beyond this limit with underwriting. The product also provides flexibility to increase the death benefit at different stages of life: • Marriage • Birth of first child and • Birth of second child

Decrease in Death Benefit: The policyholder has the option of decreasing of death benefit in the multiple of Rs.1, 00,000.

Switch Between the Funds: The policyholder would have the control to direct his investment depending upon the market conditions by switching the money between the funds. There are four switches available to the policyholder.

Top-Ups: If the regular premium s is paid up to date Single premium top-ups can be made. Top-Ups give the flexibility to the policyholder of increasing the value of his investments over a long term.

Loans: After the policy has acquired a surrender value, a loan can be available under the policy, as per the prevailing rate at that point of time. No partial withdrawal can be made during the loan period.

Charges: Initial Administrative Charges: The initial charges for premium <50,000 would be 20% . However the charges would be reduced to 18% 2 year 3 year 7.5% of the premium 4% of the premium

Insurance Charges: This charge is basically towards the mortality and the riders. These are deducted by the cancellation of units on a monthly basis.

Annual Investment Charges: This is 1.25% of the value of units for maxi miser & balancer.

Life Time Super at a Glance: Min Age at Entry Max Age at Entry Min Contribution 0 60 years Annual- Rs.18, 000 Half- Yearly- Rs.9000 Monthly- Rs.1, 500 Modes of payment Yearly, Half Yearly, Monthly

A regular premium, unit-linked pension policy that offers you the flexibility to invest in unitlinked funds that generate potentially higher returns. The accumulated value of your policy provides you with a regular income (pension) for life.

Key benefits: 1. Accumulate savings and create a retirement kitty by investing regularly in unit-linked policy. 2. Get regular income (pension) post retirement. 3. Enjoy the flexibility to choose from 5 pension options through which you can receive your pension. 4. Choose your retirement date from which you'll start receiving your pension. 5. Choose from 4 investment funds to invest your money, based on your risk appetite. 6. Receive up to one-third of the accumulated value as a tax-free lump sum on vesting (retirement) date 7. Opt for a life insurance cover that will provide complete protection to your family.

A regular premium unit-linked insurance policy that offers the benefit of life insurance cover along with flexible investment options.

Key benefits: 1. This policy offers you the protection of Sum Assured and Fund Value, in case of an unfortunate event of death 2. Potentially higher returns over the long term by investing in market-linked funds. 3. Additional allocation of units at regular intervals to enhance your investment. 4. Option to withdraw your money systematically over a period of 5 years on maturity of the policy. 5. Cover continuance option available which ensures continuance of life insurance cover even if you take a break in premium payment. 6. Automatic Transfer Plan enables you to systematically increase the equity component of your investment. 7. Enjoy tax benefits on premiums paid and benefits received under this policy, as per the prevailing Income Tax Laws.

Life link Super is a unique single premium plan that combines the security of a life insurance policy with the opportunity to enjoy potentially high returns on your investments.

Low Allocation Charges: The premium allocation charges are amongst the lowest across products. Allocation charge for single Premium of Rs500,000 or more is 0%.

Death Benefit: There are 2 options for sum assured - 500% of the single premium or 125% of the single premium. In the event of an unfortunate death, the beneficiary will receive higher of the value of units or the initial death benefit (adjusted for partial withdrawals*).

Liquidity: In order to meet liquidity requirements, one can make partial withdrawals from the accumulated value of the policy after completion of three policy years.

Flexibility: Choose from four fund options, based on your investment objective and risk appetite. If at a later stage your financial priorities change, you can switch between the various funds options, absolutely free, 4 times a year.

ICICI Prudential Life Insurance offers LifeGuard - a set of pure protection plans. Choose from amongst three different product structures to insure your life and provide total security to your family, at a very affordable cost.

Level Term Assurance with return of premium• • On death the entire sum assured will be paid. On maturity, all the premiums paid will be returned.

Level Term Assurance without return of premium• • On death the entire sum assured will be paid. No survival or maturity benefits

Level Term Assurance - Single premium• • On death the entire sum assured will be paid. No survival or maturity benefits

Premier Life Gold from ICICI Prudential Life Insurance is designed for preferred customers like you. This plan offers short premium payment terms with the freedom to stay invested for longer periods. Over and above, it provides you with flexible investment options, to help you create wealth and enjoy insurance protection for a longer period of time.

Limited Premium Payment term: Pay for either 3 or 5 years ONLY!

Flexible Policy Term: Choose to stay invested with us for as long as 30 years

Low Charges: One of the lowest priced products in the wealth creation cum insurance category

Potential high returns: Over the long term by investing in market-linked funds

Automatic Transfer Plan: Enables you to systematically increase the equity component of your investment

Partial Withdrawals: Ensures liquidity in the time of need

Switches: Alter your fund allocation depending on your financial priorities

Settlement Options: Enable you to systematically withdraw your funds after maturity

Tax benefits: As per the prevailing Income Tax laws.

An ideal plan for those who want to accumulate funds on a regular basis while enjoying insurance protection.

Guaranteed Benefits: Guaranteed additions @ 3.5% of the Sum Assured, compounded annually for the first 4 years of the policy.

Extended Life Cover: An extended cover for 5 years after the maturity of the policy, for 50% of the sum assured, at no extracost.

Maturity Benefit: At the end of the term, the policyholder receives the full sum assured, the guaranteed additions and the vested bonuses.

Death Benefit: -

The beneficiary receives the sum assured, the guaranteed additions and the vested bonuses incase the life assured were to meet with an unfortunate event. In case the life assured is aged 7 years or less, the basic premium paid will be returned.

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

1. Smart Kid regular premium (RP) 2. Smart Kid single premium (SP)
Both these plans offer you:

Financial Benefits: Regular payments at critical stages in your child’s life, like Board examinations, Graduation and Post-graduation.

Total peace of mind, even if you are not around



Sum Assured is paid immediately:
Ensures that your loved ones stay financially secure, even in your absence.



All future premiums are waived:
Ensuring that your family is not financially burdened, while the Company pays the future premiums on your behalf..



Policy benefits continue:
The educational benefits of the policy continue, ensuring that your child can realize his or her dreams without any hassles.

Development Allowance: Smart Kid guarantees regular income to secure your child’s educational career and also ensures his or her all-round development, for a nominal additional amount. The Income Benefit Rider takes care of this through an annual payment of 10% of the sum assured, to your child, till the maturity of the policy, in the unfortunate event of the death of the parent.

SMART KID REGULAR PREMIUM (RP)

This is a regular premium unit-linked child solution, which provides a number of flexible options to the consumers so as to match the product depending upon the requirement of the child education and future.

Sum Assured: Sum Assured in smart kid is a multiple of the annual contribution that is paid by the policyholder. However there are limits on the multiple based on the age of the policyholder. For policyholder between the ages 20-40 years, the multiple are 5-50 times the annual contribution. For policyholder between the ages 41-60 years, the multiple are 5-25 times the annual contribution.

Death Benefit: In this case policy continues even after the death of the policyholder. Therefore on the death of the policyholder, the product offers following benefits: 1. The Sum Assured chosen at the inspection by the policyholder is paid immediately on death. 2. The policy keeps on continuing and hence the withdrawals from the plan can be made as per the requirements and appointee of the child would have the flexibility to do so.

Annual Contribution: The policyholder has the option to start with a contribution amount that he is comfortable with and that would be required as per the financial requirement of the persons. However, the

minimum contribution to be made is Rs.18000 per annum.

Switch between the Funds: The policyholder would have the control to direct his investment depending upon the market conditions by switching the money between the funds. There are four switches available to the policyholder.

Top-Ups: If the regular premium s are paid up to date Single premium top-ups can be made. Top-Ups give the flexibility to the policyholder of increasing the value of his investments over a long term.

SMART KID SINGLE PREMIUM (SP)
This is a single premium unit-linked child solution, which provides a number of flexible options to the consumers so as to match the product depending upon the requirement of the child

education and future.

Sum Assured: Sum Assured in smart kid is a multiple of the annual contribution that is paid by the policyholder. However there are limits on the multiple based on the age of the policyholder. Thus, Sum Assured is = 500% of the Single Contribution

Switch between the Funds: The policyholder would have the control to direct his investment depending upon the market conditions by switching the money between the funds. There are four switches available to the policyholder.

Top-Ups: If the regular premium s is paid up to date Single premium top-ups can be made. Top-Ups give the flexibility to the policyholder of increasing the value of his investments over a long term.

A Comprehensive Cancer Insurance plan that covers most forms of cancer and is uniquely designed to provide benefits at both early and advanced stages of cancer.

Key Benefits: • Besides covering the most common cancers among men and women, like lung,

esophagus, larynx, stomach, breast, cervix and ovary, it also covers a comprehensive list of cancers that include stomach, large bowel, bladder, head and neck, liver, pancreas, gall bladder, brain, kidney and lymphoma . • • Can be taken for a term from 10 years up to age of 70 years.

Provides benefit in the form of cash payouts at various stages for diagnosis, treatment and surgery, to help you meet the expenses.

• •

Payout independent of other medical insurance plan. Future premiums waived if advanced cancer is detected.

Tax Benefits: Contributions under the plan are eligible for tax benefit under section 80D and claim benefits are

eligible u/s 10(10D) as per prevailing Income Tax Laws

Benefit: The following table shows the benefit that will accrue for coverage of Rs. 10 lakhs Claim at early cancer stage Diagnosis of Early Cancer* Oncological Treatment Benefit for Early Cancer Diagnosis of Advanced Cancer* Oncological Treatment Benefit for Advanced Cancer Surgery for Advanced Cancer Maximum Cover • Rs.1 Lakh (10% of units) Rs.1 Lakh (10% of units) Claim starts at advanced Cancer stage NA NA

Rs. 5.5 Lakhs (55% Rs. 6.5 Lakhs (65% of units) of units) Rs. 1 Lakh (10% of Rs. 1.5 Lakhs (15% of units) units) Rs. 1.5 Lakhs (15% Rs. 2 Lakhs (20% of units) of units) Rs. 10 Lakhs (100% Rs. 10 lakhs (100% of units) of units)

Diagnosis of all forms of cancers must be on the basis of microscopic examination of fixed tissue, supported by a biopsy and a histological report. Clinical, suspected or equivocal diagnoses are not covered under this policy. The oncological treatment/surgery should take place with in two years from the date of diagnosis of advanced cancer. For actual terms and conditions of the coverage and exclusions, please refer to the policy document.

Premiums for coverage of Rs 10 lakh
Male Age at entry Female Coverag e till 70

Coverage till 65 Coverage till 70 Coverage till 65

25 30003030 35 40 45

2918 3232 3692 4555 5770

3428 3781 4437 5319 6681

4525 5456 6583 8083 9719

4966 5897 7093 8524 10170

HDFC STANDARD LIFE INSURANCE

PERSONAL PENSION PLAN WORKING OF PERSONAL PENSION PLAN: This participating (with profits) plan is basically a savings contract, which is designed to provide an income for life from retirement. It does this by providing a notional lump sum on retirement, comprising of sum assured plus any attaching bonus. Subject to the prevailing regulations, part of this lump sum can be taken in form of cash and the rest converted to an annuity at the rate then offered by HDFC Standard Life. Alternatively, if it is permitted by the prevailing regulations, the notional lump sum can be used to buy an annuity with any other insurance company who will accept such business. On earlier death after the first year, for Regular Premium policies all premiums paid to date will be returned with interest at 8% per annum, subject to a maximum of the sum assured plus bonuses declared to date. For Single premiums, it is sum assured plus bonuses declared to date. Normally, we will declare a reversionary bonus once a year. Once added, it cannot be reduced. Reversionary bonus will take the form of a simple addition to your policy benefits. In addition, on maturity, a terminal bonus might be payable. On death, an interim bonus, reflecting the period since the last addition of reversionary bonus, might also be payable.

NOTIONAL LUMP SUM AS CASH ON RETIREMENT: Subject to the prevailing legislation and regulations, part of this can be taken as a lump sum and

the rest used to buy an immediate annuity.

PAYING PREMIUMS: You can pay either a single premium or pay premiums in quarterly, half-yearly or annual form by cheque, in cash or by bank drafts.

BASIC BENEFITS: Your basic benefits will be paid by cheque.

ALTER THE BASIC BENEFITS AND TERM OF POLICY: You cannot increase your benefits or term under this policy. To increase your benefits, you would need a new policy. You should contact your personal financial consultant. You may be able to decrease the benefits. The terms for so doing will be at our discretion.

COST: The cost of the plan depends on your age, the amount of benefit you have chosen, the premium paying frequency and the term of the policy. To give you an idea, here are the annual premiums in Rupees, payable on a policy with sum assured of Rs. 100,000.

Age 10 n/a n/a 9,577 15 n/a 6,098 6,117

Term 20 4,309 4,327
4,357

30 35 40

For Single premium policies, the premium payable with respect to the basic benefit is equal to the basic sum assured as required by the policyholder.

ELIGIBILITY: Minimum Maximum Minimum Maximum Minimum Maximum Term3 Term Age atAge atAge atAge at Entry Entry Retirement Retirement RP1 SP2 RP SP RP SP 50 70 10 5 40 15 18 35 60
1. RP: Regular Premium 2. SP: Single Premium 3. Term to Retirement

LOANS: There is no facility for loans against this contract.

SURRENDER VALUE: You can surrender the policy at any time. Subject to prevailing legislation and regulations, you may be paid a surrender value at our discretion. If premiums have been paid continuously for at least 3 years, the surrender value will be subject to a guaranteed minimum.

GUARANTEED SURRENDER VALUE: Before retirement, the guaranteed surrender value, including the value of any attaching bonuses, for Regular premium policies is: • • Zero in respect of premiums paid in the first year; and 50% of premiums paid subsequent to the first year in respect of the basic benefit, excluding all additional premiums. • Before retirement, the guaranteed surrender value, including the value of any attaching bonuses, for Single Premium policies is 50% of the single premium paid in respect of the basic benefit, excluding all additional premiums.

OM KOTAK MAHINDRA LIFE INSURANCE
KOTAK RETIREMENT INCOME PLAN

KOTAK RETIREMENT INCOME PLAN: The Kotak Retirement Income Plan is a savings plan designed to meet your post-retirement needs. It is a plan that gives you "Jeene ki azaadi". It gives you the choice to remain independent even after retirement. The Kotak Retirement Income Plan is a participating plan. The plan comes in two forms: • • With Cover Without Cover.

ELIGIBILITY: Minimum age - 18 years Maximum age - 60 years

TERM: Terms can you chosen to pay the premiums: 5 yrs - 30 yrs

VESTING AGE: Minimum Age - 45 yrs, Maximum Age - 65 yrs

COMMUTATION: You may take a lump sum in cash of up to a third of your Basic Sum Assured or Accumulation Account, whichever is higher; and the balance of the benefit you are eligible for will be used to buy an annuity of your choice. (Accumulation Account is your personal account in which the premiums that you pay are deposited, the returns declared every year are added and risk and expense charges are deducted).

OPEN MARKET OPTION: You may buy an annuity either from OM Kotak Mahindra (subject to the choice and rates available at that time)(Only with cover plan), or from any other insurer.

CHANGING OF VESTING AGE: PRE-PONE - VESTING AGE: You may opt to retire early, i.e. at any age before the normal retirement date (subject to the policy being in force for 3 years or your attaining a minimum age of 45 yrs, whichever is later). You can then secure benefits with your Accumulation Account, net of an early retirement charge of 5%. If the early retirement is due to ill health, then you may retire before attaining the age of 45. You can then secure benefits with your full Accumulation Account.

POST-PONE - VESTING AGE: You may opt to retire after the retirement date originally selected, and select a new retirement date (subject to a maximum of 65 years). No further premiums will be payable and the death benefit will be equal to the balance in Accumulation Account.

LUMP-SUM INJECTIONS: You can make lump-sum injections into your policy at any time before retirement (such lumpsum injections during a year may not exceed 25% of the Basic Sum Assured). A Supplementary Accumulation Account will be created for this, and will be paid out in the same manner as other benefits. You may exercise the option of paying premiums from the Supplementary Accumulation Account, created for "lump-sum injections", if the need arises. For a "With Cover" plan, you have the facility of Automatic Cover Maintenance, which ensures that the cover remains in force even when you miss the premium payments. This facility is available after the first three years of the term. You have the option of paying premiums in quarterly, half-yearly or yearly installments.

FREE LOOK PERIOD: You have the facility of a 15-day free look period.

KOTAK IMMEDIATE INCOME PLAN: (Only with cover plan) For example you can currently avail of the Kotak Immediate Income Plan, which gives the option of Life Annuity with Return of Purchase Price. The annual annuity rate applicable for an immediate annuity purchased now is 6.11% of Purchase Price (before deduction of charges), for the age group 56 years to 65 years. This, however, will vary with prevailing market interest rates, but will be competitive.

TATA AIG LIFE INSURANCE
NIRVANA

VESTING AGE: You can choose your retirement fund and your retirement age (anywhere from 50 to 65 years) so you choose the age from which you start getting your pension.

GURANTEED RETURNS: Like no other retirement plan in the market, it guarantees an additional 10 per cent of the sum assured if your policy has been in force for 10 years. That's how sure we are of our future stability. So when you're ready to put up you feet and rest, you worry about your garden, not how you fund it. This guaranteed addition is also payable on death.

NON-GURANTEED RETURNS: To top all this, extras like our Reversionary and Terminal bonuses add up to a very attractive package.

The Reversionary bonus is projected at an annual 3 per cent (compounded) from the 5th year of your policy. The Terminal bonus - that can go up to 40 per cent - is paid at the time of retirement or death (policy must be in force for a minimum 10 years). Both these bonuses are non-guaranteed and depend on the performance of the company.

COMMUTATION: At the time of retirement or death we return 25 per cent of your accumulated sum. With the other 75 per cent you (or your nominee) buy an annuity - an annuity being something that pays you a monthly pension for the rest of your life.

OPEN MARKET OPTION: You can buy this annuity from us or from any other insurance company in India.

TAX BENEFITS: The lump sum on retirement (or death) is tax-free, and you get tax benefits on the premiums paid - under Section 80CCC (1).

RIDERS: You can also attach Accident, Term and Critical Illness riders to this policy for added protection.

LIFE INSURANCE CORPORATION
NEW JEEVAN SURAKSHA - 1 AGE ELIGIBILITY: Minimum Age at entry: 18 years, Maximum age at entry: 70 years

VESTING AGE: Minimum vesting age: 50 years, Maximum vesting age : 79 years

MINIMUM PERIOD: Minimum deferment period: 2 years.

PURCHASE PRICE: Minimum Notional Cash option: Rs. 50,000 for regular premium policies (Notional Cash Option - This is an amount based on which annuity/pension is calculated. The policyholder will not get this amount).

MINIMUM ANNUAL PREMIUM: Minimum amount of Annual Premium: Rs. 2500 Minimum Single Premium: Rs. 10,000/-

Maximum deferment period: 35 years.

COMMUTATION: The Notional Cash Option together with Reversionary Bonuses and Final additional Bonuses (if any) with or without 25% commutation will be compulsorily converted into annuity having following options.

ANNUITY OPTIONS: • • Annuity for life with guaranteed period of 5, 10, 15, 20 years. Joint life and last survivor annuity to the annuitant and his/her spouse under which annuity payable to the spouse on death of the purchaser will be 50% of that payable to the annuitant. • • Life annuity with return of purchase price. Life annuity with annuities increasing at a simple rate of 3% per annum.

The annuity rates will be that available under the version of the New Jeevan Akshaya Plan current at the date of vesting. A rebate of 3% will be available on the purchase price of the New Jeevan Akshaya Policy. Option for the annuity type is to be exercised at least 6 months before the date of vesting.

DURING DEFERMENT: A term rider option will be available. On the death of the policyholder who has opted for the term Assurance rider (provided the policy is in-force), the Term Assurance Sum

Assured along with all premiums (excluding term Assurance premium and extra premium if any) paid up to the date of death accumulated at the rate of 5% p.a. compounding or at such rates as decided by the Corporation from time to time will be paid to the nominee. When the policy is not in-force, only return of premiums with interest as stated above will be available. For those not opting for the Term Assurance Rider, in respect of policies which are in-force or in a paid up condition, all premium accumulated at 5% p.a. compounding or at such rates as decided by the Corporation from time to time, will be paid to the nominee. Term Rider Option will be available only on the Annual Premium Plan.

REBATES: Premium will be payable yearly, half-yearly, quarterly or monthly (including SSS) or by single premium. Mode rebates @ 2.6%, 1.3% and 0.5% of the tabular annual premium will be available for yearly, half- yearly and quarterly premiums. For large cash option the rebates available are: AMOUNT (Rs) >=1,00,000 2,00,000 < >=2,00,000 < 5,00,000 4% 7% >= 5,00,000 5% 8%

Rebates Available for Single 3% Premium Rebates Available for Annual 6% Premium

Both rebates will be applied separately on the Tabular Premium and not after the other has been applied.

SURRENDER VALUE: For Annual Premium Plans: The Guaranteed Surrender Value will be equal to 90% of all premiums paid excluding the first year premium, all Term Assurance premium and extra premium (if any). This will be allowed after at least two full years’ premiums have been paid and will be available after two full years have been completed from the date of commencement. However, the policy can not be surrendered after the annuity vests. For Single Premium Plan: The Guaranteed Surrender Value will be 90% of the single premium paid. Surrender will be allowed 2 years after the commencement of the policy.

GRACE PERIOD: The days of grace will be one calendar month but not less than 30 days under the yearly, halfyearly and quarterly modes of payment of premium. For monthly mode, the days of grace will be 15 days.

STATE BANK OF INDIA
LIFELONG PENSION GURANTEED RETURNS: Guaranteed Returns On top of a guarantee of the principal corpus, our plan gives a minimum guaranteed return on the savings. LIFELONG Pensions guarantees you a minimum return of 4% per annum during the first seven years of your subscribing to the Pension Plan and the return is compounded annually (Till 31-March-2010). In addition, you will be entitled for any annual bonus that might be declared by SBI Life every year based on the net surplus from the pension fund investments. SBI Life would announce the minimum rate from time to time, so that at any point of time there is a minimum guaranteed rate that your retirement savings will accumulate with us. On top of a guarantee of the principal corpus, our plan gives a minimum guaranteed return on the savings.

TAX SAVING: All contributions you make under our Pension Plan qualify for tax exemption under Section 80 annum). The deduction is available to everyone irrespective of the tax bracket they come under

ELIGIBILITY: Any person between the age of 18 to 65 can subscribe to this unique Pension plan.

PREMIUM: The pension Account Holder can invest any amount of regular contribution towards retirement savings, with a minimum of just Rs. 3,000 per year. He/She can increase or lower the annual contribution during his/her working life, subject to this minimum amount.

LUMP SUM PAYMENT: The Pension Account holder can also have the option of making a one-time lump sum payment. Just pay a lump sum amount at any time during your working life, watch the amount grow with SBI Life, and choose the suitable pension option when you opt to enjoy the retired life.

AVIVA LIFE INSURANCE
PERSONAL PLUS

PREMIUM: Pension Plus is a regular savings personal pension plan.

ELIGIBILITY AGE: It can be purchased for any life between 18 to 65 years of age.

VESTING AGE: The minimum age at maturity is 50 years and the maximum age at maturity is 70 years.

MINIMUM PREMIUM: The minimum annual premium is Rs. 6,000.

TERM: The minimum policy term is 5 years.

PREMIUM TOP-UPS: You have the flexibility of increasing your regular premiums (minimum increase of Rs. 1,000).

However, regular premium once increased cannot be reduced.

CHANGE OF VESTING AGE: You have the option of increasing the policy term through a written communication at least three months prior to the maturity date. The minimum increase allowed in the policy term is one year. This option can be exercised only once during the term of the policy.

OPTION OF RETIAINING THE POLICY: You also have the option of retaining the policy (after the expiry of the policy term) with the Company by converting it into a paid-up policy till you attain 70 years of age.

UNIT PURCHASE: The premium you pay is used to purchase units at their current price on the date of allocation. You earn investment returns through increases in unit price.

INVESTMENT OPTIONS: Pension Plus offers two investment fund options • With Profits Fund

The With Profits Fund provides a guarantee that the selling price of the units will never fall. Crediting bonuses on daily compounding basis increases the unit value of this fund. A final bonus, if any, may also be payable at maturity, death, or at the time of surrender. The fund provides investment security to your capital.

LUMSUM INVESTMENT: Pension Plus also offers you the flexibility of making lump sum investments through additional single premiums, apart from the regular premiums, as often as you require over the duration of the policy. These increase the savings value of the policy besides maximizing tax benefits. The minimum lump sum investment through additional single premium is Rs. 10,000/- at present but may vary subject to reviews by the Company. The additional single premium units can be surrendered only on full surrender of the policy.

MINIMUM REGULAR PREMIUM: Payment of at least the minimum specified regular premium up to the stipulated age.

RESEARCH METHODOLOGY
No project is completed without a research framework. So I have also gone through a systematic procedure of research methodology.

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problems. It may be understood as science of studying how research is done scientifically.

RESEARCH METHODOLOGY PROCEDURE
1. DEFINING RESEARCH PROBLEM. 2. REVIEWING THE LITERATURE. 3. FORMULATING HYPOTHESIS. 4. RESEARCH DESIGNING. 5. DATA COLLECTION. 6. ANALYSING DATA. 7. INTERPRETING AND REPORTING..

1. DEFINING RESEARCH PROBLEM: There are two types of research problems,
that is those which relates to state of nature and those which relate to relationship between variables. Our research is the former one and the problem in precise way is

"Effective Marketing of life insurance"

2. REVIEWING THE LITERATURES: I undertook extensive literature study from
the website of ICICI Prulife, journals, newspapers and previous research findings about insurance.

3. FORMULATION OF HYPOTHESIS: Hypothesis is a tentative assumption made in
order to draw out and test its logical and empirical consequences. Our assumptions are: • • • People have at least basic knowledge of insurance. I have assumed certain priorities as per annexes. We have limited our research unto Panipat only.

4. RESEARCH DESIGN: Research design is a conceptual structure within which research
is conducted. Research design can be of various types.  Descriptive  Exploratory  Experimental/  Analytical

My research is Exploratory. 5. SAMPLE DESIGN: Sample is a part of population, which represent the whole
population. Various type of sample design is:

 Deliberate Sampling  Convenience Sampling  Judgment Sampling  Simple Random Sampling  Systematic Sampling  Stratified Sampling  Quota Sampling  Cluster Sampling  Multistage Sampling  Sequential Sampling

The Sample Design, which I opted, was Judgment Sampling
1. DATA COLLECTION: I have collected data by: • • • Personal Interview Telephone Interview Questionnaires/need Analyzers.

SWOT ANALYSIS
S – Strength W – Weakness O – Opportunity T- Threat

ICICI Prudential is one of the most powerful, world class Life Insurance Co. gaining appreciation for their strong ethics, excellent performance, professionalism and team work which led them to progress in today’s challenging environment. Though with its excellence performance and every efforts has been made to present the most authentic and truly representative findings, but some deviations and hurdles in progress. So, with its strength and good quality, the company is having some weakness, and threats and opportunities. SWOT analysis is explained below:

Strengths
• • ICICI Prudential is the largest private player in the insurance industry in India. Excellent services.

• • • • • •

Customization of products as per customer’s needs. Brand image. Business Experience. Strong Financial Base. Innovative Products, Technology, Organization culture and climate. The company has a large network of branches, which is helpful to customer for the payment.

WEAKNESSES • Lot of competitors are in the market offer same product offered by the difference in the premium and offering. • Target only higher income group whereas other companies are trying to catch middle-class people. • • • Higher premium as compared to other companies. Clients face problems to get insured due to large number of formalities. High targets for financial advisors and for the sales department.

OPPURTUNITIES • Huge market is literally untapped. Out of estimated 320 million insurable markets only 20% of the population is insured.



In a conservative society of India where people are most inclined towards risks free investment such as Bank FD’s and saving rather than equity and high risk investment insurance offers the best of both worlds – The security with high returns.

• •

In the pension field where people want good life after their retirement. Indian people are more emotional towards their that’s why children plans are selling like hot cakes.



Health insurance and pension schemes as estimated market potential of approximately $15 dollars

THREATS • Weak perception of private players in the mind of Indian people due to frequent financial scams. • • Large number of insurance players. Existing wrong business practices of companies like LIC first premium is paid by their agents where –as IRDA suggests that even forms to be filled by the clients themselves. • Players like Allianz Bajaj and Birla Sun Life with low premium for the similar plans.



Entry of many other private companies with equally strong experience and financial strength of foreign partners making the competition difficult and saturating the urban markets.



LIC has woken up from sleep and is following competitive strategies. Its huge surplus in life fund gives a capability to lodge price war.



For the insurance sector Govt. set the authority that is IRDA which is undertaken to track record of all the companies and change the rules day by day more rigid, which is very difficult for the companies.

CONCLUSION
It is clear from the above study that insurance business is mushrooming in the country. Today there are number of insurance companies offering different insurance plans with different added advantages. LIC is leading company in the insurance business in India with a market share of 87% followed by ICICI Prudential with a market share of 5.4%. Today more and more private entrepreneurs are coming to deal in life insurance products. It is not an easy task for a company to stay stable and survive with rapidly growth in the tough competition. Hence a company dealing in life insurance’s products needs qualify and persuasive insurance advisors. Company must provide world-class training and promotional opportunities to their advisors to better performance.

SUGGESTIONS
• • ICICI Prudential should provide the home services to its customers. ICICI Prudential should reduce its minimum policy payment in the first installment. • To educate the client/customer, the interaction with the client should be improved by conducting seminar, client meetings and workshops. • To increase the market share, ICICI Prudential should increase its branch network, especially in the rural areas.

LIMITATIONS
This summer training will always remain one of the best experiences of my life. But no study is complete in itself, however good it may be and every study has some limitations, some of the limitations which I have confronted are as follows:• • • Time period for covering the project was short. It was not easy to convince the professionals. Companies were not ready to give address of their respective customers to conduct a survey.

BIBLIOGRAPHY
• • • Study Material of ICICI PRUDENTIAL LIFE INSURANCE Study Material of HDFC STANDARD LIFE INSURANCE Study Material of LIFE INSURANCE CORPORATION

TEXT BOOK: Research Methodology C. R. Kothari

WEBSITES: www.iciciprulife.com www.icicibank.com www.lic.com www.birlasunlife.com

The decision has been made to invest in pension funds . . . enjoy a tension free tomorrow . . .

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