Comparison of Sbi And Other Life Insurance
Content
THIS PROJECT IS ABOUT AGENCY BUSINESS MODEL COMPARISON OF SBI
ANS OTHER LIFE INSURANCE. IT COMPARES SBI LIFE INSURANCE FROM
OTHER LEADING INSURANCE COMPANIES IN THE PRIVETE SECTOR IN
TERMS OF THEIR PRODUCTS, PRICES, PROMOTIONAS STRATEGIES, LIFE
INSURANCE PRODUCTS AND PLANS, THEIR AGENCY FUNCTIONS AND
OTHER SUCH TERMS. THE PROJECT IS EXPLAINED IN A VERY SIMPLE
LANGUAGE WITH BEST POSSIBLE DIAGRAMS AND TABLES WHERE EVER
POSSIBLE. THE BASIS THEME OF PREPARING THIS PROJECT IS TO GAIN
KNOWELADGE ABOUT THE WORKING OF THE INSURANCE COMPANIS IN
OUR COUNTRYAS WELL AS IN OUR PRACTICAL LIFE AS IT IS A PART OF
OUR LIFE WHIS INSURES OUR LIFE IN CASE OF ANY LOSS
Acknowledgement
I t gives me pleasure to present this project on “AGENCY BUSI NESS MODEL
COMPARATI VE ANALYSIS BETWEEN SBI AND OTHER LI FE I NSURANCE
to the student of TYB.Com (Banking & Insuranc e). The subject matter is made more
compact & logical.
I am gratefully acknowledged the valuable efforts, suggestion & clarifications provided by
many by making this project practical.
I t would be rather unfair on my part for not thanking my collegeS.K.Somaiya college Arts,
Science & Commerce for having shown their continues faith in me.
I extend my sincere gratitude to Prof. Aparna J ain, my project guide, for extending her
support, guidance & co-operation in completing this project.
I take this opportunity to express my sincere appreciation & gratitude to my college
librarian who made the references and data available.
I express my grateful thanks to everyone who have contributed even in a small way towards
successful completion of this project.
Last but not least, I would like to thank my parents for providing me with such good and
me in the completion of this project.
INTRODUCTION TO INSURANCE
Insurance Market- Present:
The insurance sector was opened up for private participation four years ago. For years
now, the private players are active in the liberalized environment. The insurance
market have witnessed dynamic changes which includes presence of a fairly large
number of insurers both life and non-life segment. Most of the private insurance
companies have formed joint venture partnering well recognized foreign players across
the globe.
There are now 29 insurance companies operating in the Indian market – 14 private life
insurers, nine private non-life insurers and six public sector companies. With many
more joint ventures in the offing, the insurance industry in India today stands at a
crossroads as competition intensifies and companies prepare survival strategies in a
detariffed scenario.
There is pressure from both within the country and outside on the Government to
increase the foreign direct investment (FDI) limit from the current 26% to 49%, which
would help JV partners to bring in funds for expansion.
There are opportunities in the pensions sector where regulations are being framed. Less
than 10 % of Indians above the age of 60 receive pensions. The IRDA has issued the
first license for a standalone health company in the country as many more players wait
to enter. The health insurance sector has tremendous growth potential, and as it
matures and new players enter, product innovation and enhancement will increase. The
deepening of the health database over time will also allow players to develop and price
products for larger segments of society.
State Insurers Continue To Dominate there may be room for many more players in a
large underinsured market like India with a population of over one billion. But the
reality is that the intense competition in the last five years has made it difficult for new
entrants to keep pace with the leaders and thereby failing to make any impact in the
market.
Also as the private sector controls over 26.18% of the life insurance market and over
26.53% of the non-life market, the public sector companies still call the shots.
The country‟s largest life insurer, Life Insurance Corporation of India (LIC), had a
share of 74.82% in new business premium income in November 2005.
Similarly, the four public-sector non-life insurers – New India Assurance, National
Insurance, Oriental Insurance and United India Insurance – had a combined market
share of 73.47% as of October 2005. ICICI Prudential Life Insurance Company
continues to lead the private sector with a 7.26% market share in terms of fresh
premium, whereas ICICI Lombard General Insurance Company is the leader among
the private non-life players with an 8.11% market share. ICICI Lombard has focused
on growing the market for general insurance products and increasing penetration
within existing customers through product innovation and distribution.
Reaching Out To Customers No doubt, the customer profile in the insurance industry is
changing with the introduction of large number of divergent intermediaries such as
brokers, corporate agents, and banc assurance.
The industry now deals with customers who know what they want and when, and are
more demanding in terms of better service and speedier responses. With the industry all
set to move to a detoxified regime by 2007, there will be considerable improvement in
customer service levels, product innovation and newer standards of underwriting.
Intense Competition In a de-tariff environment, competition will manifest itself in
prices, products, underwriting criteria, innovative sales methods and creditworthiness.
Insurance companies will vie with each other to capture market share through better
pricing and client segmentation.
SBI LIFE INSURANCE
OVERVIEW
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas
Assurance. SBI owns 74% of the total capital and BNP Paribas Assurance the
remaining 26%. SBI Life Insurance has an authorized capital of Rest. 2,000 cores and a
paid up capital of Rest 1,000 cores
MISSION
“To emerge as the leading company offering a comprehensive range of life insurance
and pension products at competitive prices, ensuring high standards of customer
satisfaction and world class operating efficiency, and become a model life insurance
company in India in the post liberalization period”.
VALUES
Trustworthiness
Ambition
Innovation
Dynamism
excellence
MULTI BUISNESS – MODEL
SBI Life has a unique multi-distribution model encompassing vibrant Banc assurance,
Retail Agency, Institutional Alliance and Corporate Solutions distribution channels.
SBI Life extensively leverages the State Bank Group relationship as a platform for
cross-selling insurance products along with its numerous banking product packages
such as housing loans and personal loans. Sib‘s access to over 100 million
accounts across the country provides a vibrant base for insurance penetration
across every region and economic strata in the country, thus ensuring true financial
inclusion. Agency Channel, comprising of the most productive force of over
65,000 Insurance Advisors, offers door to door insurance solutions to customers
One of our corporate ethoses, enhancing our SBI Life brand value, is about giving back
to the society. In line with our Corporate Social Responsibility (CSR) initiatives, the
cause of supporting our Elderly Citizens was initiated. Incidence of cataract blindness,
annually at 3.28 million, is one of the most prevalent health ailments suffered by old
people, particularly in rural pockets of our country.
On the occasion of World Elder‘s Day on 1st October, CSR initiative – ―Gift
Drastic‖ (Restoring vision) was launched in partnership with Help Age India, a
registered national level voluntary body, working for the cause of disadvantaged
aged persons. Restoring vision is done through Intra Ocular Surgery (IOL). SBI
Life employees made monetary contributions to the cause. SBI Life donated twice
the sum contributed by its employees. Eye sight for thousands of elderly citizens
was restored across the rural parts of the country.
Reported a robust Net Profit of Rs.276 Cores
Crossed Rs.10, 000 Cores in Gross Written Premium (GWP).
Ranked No.1, in New Business Premium, amongst private life insurance
companies.
Assets under Management (AUM) grew by 96% to Rs.28, 551 Cores.
Globally topped the prestigious MDRT 2009 for having Maximum number of
MDRT Members.
ICRA reaffirmed iota rating to SBI Life indicating highest claims paying ability.
Awarded ISO Certification (ISO/IEC 27001:2005) for Information Security
Management System (ISMS).
Retained ISO 9001:2000 certificate for superior claim settlement process.
FINANCIAL YEAR – 08 09 Bagged the coveted personal finance award-Outlook
Money NDTV Profit “Best Life Insurer 2008″.
Ranked among global top three in terms of number of Million Dollar Round Table
(MDRT) members.
Bagged the coveted personal finance award-Outlook Money NDTV Profit “Best Life
Insurer 2008″. ICRA assigned iota rating indicating highest claims paying ability to SBI
Life Insurance.
Awarded ISO Certification (ISO/IEC 27001:2005) for Information Security
. Retained ISO 9001:2000 certificate for superior claim settlement process.
Ranked among global top three in terms of number of Million Dollar Round Table
(MDRT) members.
Bagged the coveted personal finance award-Outlook Money NDTV Profit “Best Life
Insurer 2008″.
CRISIL, country‟s leading rating agency, reaffirmed its highest financial rating
AAA/Stable to SBI Life. In 2007, SBI Life became the first life insurer in India to
receive this rating from CRISIL.
ICRA assigned iota rating indicating highest claims paying ability to SBI Life
Insurance.
Retained ISO 9001:2000 certificate for superior claim settlement process
Ranked amongst global top five life insurance companies in the number of MDRT
members.
Rated as the ‟The Most Trusted Private Life Insurer‟ according to a survey conducted
by Brand Equity in association with AC Nielsen ORG-MARG and the Economic Times
Intelligence Bureau.
Became first life insurer in India to receive the highest financial rating ‟AAA‟ from
CRISIL, the country‟s best known rating agency in 2007.
Second consecutive year of Profitability
SBI Life Insurance, one of the leading insurers in India, is a joint venture between State
Bank of India and BNP Paribas Assurance. While State Bank of India (SBI) is India‟s
largest banking franchise, on the other hand, BNP Paribas Assurance is a unit of the
renowned BNP Paribas – one of the leading banks in Euro zone. SBI Life Insurance
follows a unique multi-distribution model that encompasses corporate solutions
distribution channels, retail agencies, institutional alliances and banc assurance. It also
uses the SBI Group as a platform to cross-sell insurance as well as banking product
packages like personal loans and housing loans etc.
SBI Life Insurance, with an authorized capital of Rest. 2,000 cores and paid-up capital
of Rest. 1,000 cores, has become a substantial player in Indian insurance sector. The
access to more than 100 million accounts of SBI has also acted as the driving force
behind the success of the company. SBI Life Insurance also has an extensive network of
agency channel where more than 68,000 insurance advisors work towards growth of the
organization, offering door-to-door insurance solutions to the customers.
In SBI Life Insurance, the State Bank of India holds 74% of the capital share,
while BNP Paribas Assurance holds the remaining 26%.
The Road to Success
SBI Life Insurance has crafted its name by providing quality insurance services to its
wide range of customers. Its ISO 9001:2000 certification speaks for its quality. SBI Life
Insurance has also been assigned iota rating by the ICRA for its highest claims paying
ability. In 2007, it became the first Indian life insurer to get AAA rating from CRISIL.
In the next year, Outlook Money NDTV Profit adjudged it as the „Best Life Insurer –
2008′. In 2009, SBI Life Insurance achieved the unique distinction to emerge as the
global top in terms of Million Dollar Round Table (MDRT) members with 2,677
members.
SBI Life Insurance became the first Life Insurer in India to make profits in the
financial year 2005-06. It maintained the same record in the next year as well. In
2007-08, a survey by ‗Brand Equity‘ rated SBI Life as ‗he Most Trusted Private
Life Insurer‘ in the same year, the company achieved CMMI Level 3 certification
to become the first Indian insurer to have that.
Age.
SBI Life Shush Knives will be available for an investor who is at least 18 years or at
most 60 years of age. The maximum life coverage is for 65 years, which could be
increased up to 100 years by opting for a whole life add-on rider.
The sources close to the company said that the product can be availed under both single
and regular premium payment options at a sum assured starting at Rest 75,000 with no
upper limit.
Catering to the income needs arising out changing life stages, Shush Knives presents an
attractive feature of deferred maturity payment options.
PRODUCTS
SBI Life Insurance offers an extensive range of products to its customers. It has
products for individuals as well as for the groups. It also offers a range of health
products.
Individual Products
v Unit Lined Products
SBI Life – Horizon II
SBI Life – Unit Plus II
SBI Life – Unit Plus Child Plan
SBI Life – Unit Plus Elite Plan
SBI Life – Smart ULIP
SBI Life – MAHA ANAND
v Pension Products
SBI Life – Horizon II Pension
SBI Life – Unit Plus II Pension
SBI Life – Immediate Annuity
v Pure Protection Products
SBI Life – Swathing
SBI Life – Shield
v Protection cum Savings Products
SBI Life – Scholar II
SBI Life – Shush Knives
v Money Back Scheme Products
SBI Life – Money Back
SBI Life – Sanjeevan Supreme
v For Brokers
SBI Life – SARAL ULIP
v
Group Products
v Group Employee Benefit Products
Retirement Solution
SBI Life – Cap Assure Gratuity
SBI Life – Cap Assure Superannuation
SBI Life – Cap Assure Leave Encashment
SBI Life – Dhanrashi
SBI Life – Saran Evan
SBI Life – Saran Gaga
SBI Life – Kalian ULIP
v Group Protection Plans
SBI Life – Sampson Suresh
SBI Life – Credit Guard
SBI Life – Suresh Plus
v Specialized Term Insurance
SBI Life – Shield
Group Term with ROP
SBI Life – Swathing (Group)
v Group Loan Protection Products
SBI Life – Dhanaraksha Plus SP
SBI Life – Dhanaraksha Plus LPPT
v Group Savings Protection Products
SBI Life – Nidhi Raksha RP
INFRASTRUCTURE
State Bank of India enjoys the largest banking franchise in India. Along with its 6
Associate Banks, SBI Group has the unrivalled strength of over 16,000 branches across
the country, arguably the largest in the world. Agency Channel, comprising of the most
productive force of more than 68,000 Insurance Advisors, offers door to door insurance
solutions to customers. SBI Life extensively leverages the SBI Group as a platform for
cross-selling insurance products along with its numerous banking product packages
such as housing loans and personal loans. SBI”s access to over 100 million accounts
across the country provides a vibrant base for insurance penetration across every
region and economic strata in the country ensuring true financial inclusion.
MISSION AND AMBISSION
SBI Life Insurance Company Limited is a joint venture between the State Bank of India
and BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capital
of Rest 2000 cores and a Paid-up capital of Rest 1000 Cores. SBI owns 74% of the total
capital and BNP Paribas Assurance the remaining 26%.
BNP Paribas Assurance is the life and property & casualty insurance unit of BNP
Paribas – Euro Zone‟s leading Bank. BNP Paribas, part of the world‟s top 6 group of
banks by market value and a European leader in global banking and financial services,
is one of the oldest foreign banks with a presence in India dating back to 1860. BNP
Paribas Assurance is the fourth largest life insurance company in France and a
worldwide leader in Creditor insurance products offering protection to over 50 million
clients. BNP Paribas Assurance operates in 41 countries mainly through the banc
assurance and partnership model.
SBI Life has a unique multi-distribution model encompassing vibrant Banc
assurance, Retail Agency, Institutional Alliances and Corporate Solutions
distribution channels.
PRODUCTS OF SBI LIFE INSURANCE
SBI Life INSURANCE
Introduction: SBI Life? Mahan an and II is a unique product created just for you,
which provides you insurance cover without any medicals. With a wide array of funds,
allows you to manage your investments according to your risk appetite thereby giving
you the power to realize market related returns on your policy.
SBI Life Smart ULIP Series II
Introduction: duse to the unpredictable nature of the market, you need a plan which not
only protects your investment, but also enables you to get market related returns. Sib
life – smart tulip (series ii) is the perfect answer to your need, and will give you not only
guarantee on select naves during the first seven years, but also give you the added
attraction of participating in the market upside!
SBI Life Unit plusIII
Introduction: sib life? Unit plus iii is an excellent and flexible non participating unit
linked plan, specially designed to meet your changing requirements at various stages of
life. With a wide array of funds, riders and other options, this product gives you the
complete freedom to fulfill all your investment and insurance needs. And that? S not all;
we now also offer you guaranteed additions and choice of payment options at a lower
cost, giving you far superior value.
RETIREMENT PLAN OF SBI LIFE INSURANCE
Introduction:
Increasing life expectancy rate, rising health care costs, absence of social security
system in India and disintegration of joint family system are some of the key
reasons that makes retirement planning very critical.
To help you continue celebrating your life post-retirement to the fullest, SBI Life
presents you an array of pension plans which are simple and innovative
Under SBI Horizon II Pension Plan, your money is invested in equity, bond or money
pension funds. The investment plans also vary according to the proportion of money
invested in equity funds. In case of SBI Unit plus II Pension Plans, you get to choose
between pure pension and pension cum life cover plans with flexibility to increase
regular contributions, top up payments and customize the plan by addition of riders.
Investment in SBI Life Long Pension Plans helps you avail tax deduction of up to Rest.
1, 00, 000 p.a. with 4 % p.a. minimum guaranteed returns and tax-free withdrawals of
up to 33 % from the Personal Pension Account
.
SBI health plans
Financial planning is incomplete without planning health insurance. Due to today‟s
hectic lifestyle, improper diet, lack of exercise we are at higher risk of contingencies of
untimely serious illnesses. Sudden health problems could have deep hole in your
pockets. Medical science has advanced by leaps and bounds in the last few decades.
There‟s a definite need to cover for health insurance to reduce the financial burden
Introduction
SBI Life – Group Criti9 is a traditional non participating Group Health Plan. This
plan provides protection against 9 critical illnesses where Sum assured is paid in
lump sum on diagnosis of any one of covered critical illnesses. So provides you
money at time when you need it most.
Key Features:
• Simultaneous safety and protection against 9 Critical Illnesses
• Simplified joining process
• Guaranteed renew ability till 65 years of age
• Tax benefit under section 80D of IT Act
#
, 1961
#Applicable when premiums are paid by the insured members. Subject to
change in the tax laws. Please consult your tax advisor for details.
Critical Illnesses covered:
• Cancer
• Heart Attack (Myocardial Infarction)
• Stroke
• Coronary Artery Bypass Surgery
• Kidney Failure (End Stage Renal Disease)
• Major Organ Transplant
• Coma
• Multiple Sclerosis
• Heart Valve Surgery
Please refer to the schedule of critical illnesses for further details
Eligibility:
This plan is offered to different groups like employee-employer
relationship, credit life groups, customers of bank / financial
institutions, depositors groups etc.
SBI Life will issue a Group Master Policy to the Group Master Policyholder based
on details contained in the proposal form. Group Members may be enrolled either
on a voluntary or compulsory participation basis as decided by master
policyholder.
Group Size:
•
Minimum 50 members
Age:
•
Entry from minimum age of 18 yrs till the maximum age of 55 yrs.
Sum Assured:
•
Sum assured can be selected in the following ways:
•
Uniform for all members
•
As a multiples of salary
•
As grade wise cover
Minimum sum assured is Rest. 25,000/- and maximum sum assured is Rest. 500,000/-.
Benefits:
Sum Assured is payable in one lump sum on diagnosis of any one of covered
critical illness provided:
•
Survival for a period of 30 days after the date of diagnosis
•
Submission of necessary documents
Waiting Period:
The insured member can avail the benefits after 90 days of the date of
commencement or date of revival
Other Policy Details:
•
Nomination is compulsory
•
Level Premiums payable annually in advance for the cover term.
•
Cover Term: Minimum of 2 yrs and maximum of 5 yrs
•
Cover can be renewed till 65 yrs of age subject to max cover term of 5 yrs and premium
rates / age are reviewed at the time of renewal.
•
Grace period of 30 days on annual renewal date
•
Revival facility is available within 6 months from the first unpaid premium due date
Sib child plan (sib scholar II)
Introduction:
A traditional participating plan, SBI Life – Scholar II has guaranteed benefits
which are payable at the regular intervals during the term of the policy. In an
unfortunate event, your nominee would receive full sum assured along with vested
bonus, plus regular guaranteed survival benefit.
Key Features:
•
Twin benefit of saving for your child‟s education and securing a bright future despite
the uncertainties of life.
•
Full risk cover throughout the policy term irrespective of payment of survival benefits
installments.
•
Option to receive the installments in lump sum at the due date of first installment of
Survival benefit.
•
Attractive rider options.
•
Attractive rebate for Female lives and High Sum Assured.
•
15 days Free Look Period.
Product Snapshot:
Term
Premium Payment Term ( PPT) 18 – Childs Age at entry
Policy Term
21 – Childs Age at entry ( You are covered
till the child attains 21 years of age)
Premium
Premium Mode
Monthly / Quarterly / Half Yearly / Yearly (
Single Premium also available)
Age ( As on Last Birthday)
Entry Age ( Life Assured ) Minimum: 18 years ; Maximum: 60 years
Entry Age ( Child) Minimum: 0 years ; Maximum:15 years
Maximum Age at Maturity (Life Assured) 70 years
Sum Assured
Minimum Sum Assured Rest 50,000/-
Maximum Sum Assured Rest 1 Core
Riders Available
SBI Life – Dhanavantri Supreme – Individual Critical Illness (CI Rider) (UIN :
111C004V02)
SBI Life – Accidental Death and Permanent Disability (AD & PD ) Rider (UIN:
111C001V01)
SBI Life – Premium Waiver Benefit (PWB) Rider ( Individuals) ( UIN : 111B005V01)
Benefits:
•
Guaranteed payment at regular intervals
When the child attains 18 years of age, the parent has an option of:
Receiving the Sum Assured in 4 installments:
Age Guaranteed Benefit Payment
18 years 25 % of Sum Assured
19 years 25 % of Sum Assured
20 years 25 % of Sum Assured
21 years 25 % of Sum Assured + Vested Bonus *
Receiving the Survival Benefits in a single installment along with the Vested Bonus*
(Policy terminates thereafter)
* Vested bonus is the total amount of bonus accrued till date, under the policy.
•
DEATH BENEFIT : In the event of unfortunate incident of your early death during
the term of the plan, your child‟s future remains secured in 3 ways:
•
Child future educational needs: 25% of Sum Assured is payable in 4 equal
installments when the child attains the age 18 years to 21 years. This ensures the child‟s
higher educational needs are met.
•
Immediate Payment: The nominee receives the Sum Assured along with the bonus
declared until that date.
•
All future basic premiums need not be paid: Ensuring that your family is not
financially burdened in your absence.
Tax Benefits:
•
Tax benefit u/s 80C and 10(10 D) of the Income Tax Act*
•
Premiums paid for Critical Illness Benefit qualify for tax exemption under Sec 80D*
. SBI CHILD PLAN
Introduction:
Life begins afresh when you become a parent. It‟s a joy you never felt and a feeling you
never experienced. When your child takes baby steps towards you, you wonder what
else bliss could be?
Amidst all this divine happiness, there‟s a new sense of responsibility that fills your
heart. Like you may not really believe that life‟s a rose bed or a tender cushion, but you
certainly want it to be for your lovely children. At SBI Life, we understand and we
provide you with a unique, flexible and all-encompassing solution through our SBI Life
– Smart Scholar Plan.
Choose the one that suits you and your child‟s needs best. Our specially crafted Smart
Scholar Plan is as accommodating as you are to your child
Key Features:
•
Secure your child‟s future by gaining from the financial markets
and much more.
• Dual protection for your family, in case you are not around –
• Payment of base Sum Assured and
• Inbuilt Premium Payer Waiver benefit to ensure continuance of your benefits.
•
Accident Benefit which includes Accidental Death benefit and Accidental Total and
Permanent Disability (Accidental TPD) benefit is an integral part of the plan.
•
Free allocation of units by way of regular Loyalty Additions, giving periodic boosts to
your investments.
•
Enhanced investment opportunity through 9 varied fund optionsincluding P/E
Managed Fund, Index Fund & Top 300 Fund.
•
Twin benefits of market linked return & insurance benefit.
•
Liquidity through partial withdrawal(s).
•
Tax benefits as per prevailing tax laws.
Product Snapshot :
Age at Entry *
Child: Min: 0 years Max: 17 years
Propose: Min: 18 years Max: 57 years
Max. Age at Maturity 65 years
Policy Term
Min: 8 years
Max: 25 years less child‟s age at entry
(On Maturity, the age of child should be between 18 to 25
years)
Premium Payment Terms
(PPT)
• Single Premium
• 5 to 25 years (subject to the limits of policy term)
Premium Amounts(x100) Minimum:
PPT Frequency Minimum(Rest)
SP Single 75,000
5 years to 7 years
Yearly 50,000
Half Yearly 25.000
Quarterly 12,500
Monthly 4,500
8 years or more
Yearly 24,000
Half Yearly 16,000
Quarterly 10,000
Monthly 4,000
Maximum : No Limit
Sum AssuredFor Single Premium:
Minimum Maximum
Across all ages Age<45 years Age=>45 years
1.25 * SP 5 * SP 1.25 * SP
For other Pots:
Minimum Maximum
Age<45 years Age=>45 years Across all
Higher of: 10 * AP or ½ * T
* AP 7 * AP 20 * AP
Partial WithdrawalsUpton 15% of Fund Value can be withdrawn each year, from 6th
year onwards, subject to conditions. 1 free partial withdrawal in a policy yearTax
Benefits**Under Sec. 80C and Sec. 10(10D) of Income Tax Act,1961
* All the references to age are age as on last birthday.
Loyalty Additions, by way of free allocation of units:
During the term of the policy loyalty units would be given for in-force policies on
completion of specific durations. Loyalty additions depend on term of the policy.
The loyalty addition at relevant policy year end will be equivalent to –
1% x [Average fund value over the 1st day of the last 24 policy months]
Loyalty additions are payable at the end of the year(s) as per the chart below:
Benefits:
•
Basic Life Benefit:
•
In the event of unfortunate death of life assured, a lump sum benefit equal to higher of
the Sum Assured or 105% of all premiums paid till date of death will be payable.
•
If on the date of death, the sum assured is less than 105% of all premiums paid, the
amount in excess of the sum assured will be paid from your fund by disinvestment of
units.
•
In the event of death of child no sum assured is payable. Life assured will inform the
Company regarding the event. In such case he/she can either continue the policy or
terminate the contract. In case of termination of contract, the fund value (without any
surrender charges), will be payable.
•
If both the life assured and the child die during the term of the policy the policy will be
automatically terminated and all due benefits will be paid along with the fund value…
•
Maturity Benefit:
•
On completion of the policy term, maturity benefit i.e. the fund value shall be paid to
beneficiary in a lump sum or as per settlement option, if chosen.
The beneficiary will be:
The policyholder if he/she survives. OR
Child, in case of death of the life assured during the policy term
.
Sib term plan
A year before, term plan insurance for a cover of Rest. 50 laky for a person aged 25-30
years attracted a premium of Rest. 12,000. The average cost of such a plan is now Rest.
6,500-7,000.
A term insurance policy provides a stated benefit only upon the holder‟s death,
provided the death occurs within the policy period. There will be no stated benefits if
the policy holder outlives the policy period.
With the Insurance Regulatory and Development Authority cracking a whip on the sale
of unit-linked insurance plans, almost all major life insurers have launched a number of
new term plans in recent months, to boost their sales and diversify the product
portfolio.
Examples are Aviv Life Shield Platinum, ICICI Prudential protect, Kodak e-Term,
Kodak e-Preferred Term plan, Met Suresh Plus, SBI Life Smart Shield and HDFC
Term Insurance.
ICICI PRUDENTIAL LIFE INSURANCE
I ntroduction: This report will give the “Comparative Study of ICICI Prudential &
HDFC Standard Life Insurance Company Limited”
The Objectives of this project report are:
Objective 1:
- To study the benefits of this product provided by HDFC Standard Life Insurance
company.
- To know the consumer feedback.
Objective 2:
- To know the marketing strategies adopted to promote these products.
- To make the private players responsible to the investors and not to the government.
- To increase the competition in this sector so that the common people has the
advantage of enjoying quality services at a reasonable cost
Objective 3:
- Insurance has a far-reaching effect in synchronizing between the various service
sectors. So if this sector can grow, the prospects of the various other services sector
remains to be promising.
Number of Pages of Project Report: 100
Package I ncludes: Project Report
Project Format: Document (.doc)
Table of Contents of Project Report:
1. Executive Summary
2. Introduction to the Company
- About ICICI Bank
- About Prudential
- About the Company (ICICI Prudential)
- Product Offered By Icecap Prudential
- HDFC Standard Life Insurance Company Limited
- Problem of the Organization
- Competition Information
- More products on the anvil
- Plans of ICICI Prudential and HDFC Standard Life Insurance
3. Research Methodology
- Title Justification
- Objective
- Scope of the Study
- Significance of the Study
- Research Design
- Sampling Methodology
- Limitation4. Facts & Findings
5. Data Analysis & Data Interpretations6.
Recommendations & Conclusion
7. Bibliography
8. Annexure
ICICI Prudential life insurance overview
ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000.
The authorized capital of the company is Rs.2300 Million and the paid up capital is Rs.
1500 Million. The Company is a joint venture of ICICI (74%) and prudential plc UK
(26%).
The Company was granted Certificate of Registration for carrying out Life Insurance
business, by the Insurance Regulatory and Development Authority on November 24,
2000. It commenced commercial operations on December 19, 2000, becoming one of the
first few private sector players to enter the liberalized arena.
The Company is now operational in Mumbai, New Delhi, Pane, Chennai, Collate,
Bangalore, Chandigarh, Headband, Hyderabad and Luck now.
During this short period till March 31, 2001 the Company has issued 6387 polices
translating into a Premium Income Rest. 59.7 Million and a sum assured of over
Rs.1000 Million.
The company recognizes that the driving force for gaining sustainable competitive
advantage in this business is superior customer experience and investment behind the
brand. The Company aims to achieve this by striving to provide world class service
levels through constant innovation in products, distribution channels and technology
based delivery. The Company has already taken significant steps to achieve this goal…
Vision and Mission
Our vision is to make ICICI Prudential Life Insurance Company the dominant new
insurer in the life insurance industry. This we hope to achieve through our commitment
to excellence, focus on service, speed and innovation, and leveraging our technological
expertise.
The success of this organization will be founded on its strong focus on values and clarity
of purpose. These include:
Understanding the needs of customers and offering them superior products and
service
Building long lasting relationships with our partners
Providing an enabling environment to foster growth and learning for our
employees
And above all building transparency in all our dealings.
We do believe that we are on the threshold of an exciting new opportunity, where we
can play a significant role in redefining and reshaping the sector. Given the quality of
our parentage and the commitment of our team, there are no limits to our growth.
we‘re always eager to hear from our customers and visitors. Please let us know
what you think about our services and our website. Here are some ways to contact
us:
For comments, questions or suggestions about our services or our website:
Send e-mail to [email protected]
For product enquiries and for appointments with an ICICI Peru Insurance Advisor:
ICICI PRUDENTIAL LIFE INSURANCE PRODUCTSICICI Prudential Life
Insurance | Growth | Products & Policies offered
ICICI Prudential Life Insurance is a joint venture company between ICICI Bank India
Ltd. and Prudential PLC UK. The company started their operations in India in
December 2000.
Growth: ICICI Prudential Life Insurance‟s has posted its maiden profit of Rest 258-
crore for the financial year 2010. They have had huge profitability in this year due to
cost cutting (of about Rest 350-crore) and launch of various low charging products
while last year company had recorded a loss of Rest 780-crore.
Their target is to achieve 10% market share by this year through innovative concepts
and products. They even plan to open new branches to facilitate their growth.
The ICICI Prudential Life Insurance chief highlighted the introduction of new products
last year as a major growth-driver. The solvency ratio according to the regulatory
requirement is to be of 150% whereas ICICI Peru‟s is 290%.
ICICI Prudential Products:
ICICI Prudential Life Insurance has a variety of plans to suit your financial
requirements and give you complete security against unforeseen circumstances.
ICICI Prudential Health Care Plans are designed to help you avail the best of
medical facilities in times of crisis.
ICICI Prudential Retirement Solutions and Pension Plans are innovative schemes
to give you complete peace of mind after retirement from work.
ICICI Prudential Asset Management helps you manage your funds in the most
professional manner.
ICICI Prudential Life time gold investment
ICICI Prudential Tax saving plans is meant to provide you the benefits of tax
savings and also to invest in long-term equity.
ICICI Prudential Mutual funds like ICICI Prudential Discovery Fund, Infrastructure
Fund, Equity Fund, ELSS
AGENCY FUNCATIONS OF ICICI PRUDENTIAL LIFE INSURANCE
The Industrial Credit and Investment Corporation of India Limited (ICICI)
incorporated at the initiative of the World Bank, the Government of India and
representatives of Indian industry, with the objective of creating a development
financial institution for providing medium-term and long-term project financing to
Indian businesses. Mr.A.Ramaswami Mud liar elected as the first Chairman of ICICI
Limited.
ICICI emerges as the major source of foreign currency loans to Indian industry.
Besides funding from the World Bank and other multi-lateral agencies, ICICI was
also among the first Indian companies to raise funds from international markets.
The Industrial Credit and Investment Corporation of India Limited (ICICI)
incorporated at the initiative of the World Bank, the Government of India and
representatives of Indian industry, with the objective of creating a development
financial institution for providing medium-term and long-term project financing to
Indian businesses. Mr.A.Ramaswami Mud liar elected as the first Chairman of
ICICI Limited.
ICICI emerges as the major source of foreign currency loans to Indian industry.
Besides funding from the World Bank and other multi-lateral agencies, ICICI was
also among the first Indian companies to raise funds from international markets.
1956:
ICICI declared its first dividend of 3.5%.
1958:
Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.
1960:
ICICI building at 163, Backbay Reclamation, inaugurated.
1961:
The first West German loan of DM 5 million from Kredianstalt obtained.
1967:
ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.
1969:
The first two regional offices in Calcutta and Madras set up.
1972:
The second entity in India to set up merchant banking services.
Mr. H. T. Parekh appointed the third Chairman of ICICI.
1977:
ICICI sponsored the formation of Housing Development Finance Corporation.
Managed its first equity public issue
1978:
Mr. James Raj appointed the fourth Chairman of ICICI.
1979:
Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.
1982:
ICICI became the first ever Indian borrower to raise European Currency Units.
ICICI commences leasing business.
1984:
Mr. S. Nadkarni appointed the sixth Chairman of ICICI.
1985:
Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICICI.
1986:
ICICI became the first Indian institution to receive ADB Loans.
ICICI, along with UTI, set up Credit Rating Information Services of India Limited,
India‘s first professional credit rating agency.
ICICI promotes Shipping Credit and Investment Company of India Limited.
1987:
The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first
public issue by any Indian entity in the Swiss Capital Market.
1988:
ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth
Development Corporation (CDC), the first loan by CDC for financing projects in India.
1993:
Promoted TDICI – India‟s first venture capital company.
1994:
ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set
up.
1996:
ICICI Asset Management Company set up.
ICICI Bank set up.
ICICI Ltd became the first company in the Indian financial sector to raise GDR.
1997:
SCICI merged with ICICI Ltd.
Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.
ICICI Ltd was the first intermediary to move away from single prime rate to three-
tier prime rates structure and introduced yield-curve based pricing.
1998:
The name The Industrial Credit and Investment Corporation of India Ltd changed to
ICICI Ltd.
ICICI Ltd announced the takeover of ITC Classic Finance.
1999:
Introduced the new logo symbolising a common corporate identity for the ICICI Group.
ICICI announced takeover of Anagram Finance.
2000:
ICICI launched retail finance – car loans, house loans and loans for consumer durables.
ICICI becomes the first Indian Company to list on the NYSE through an issue of
American Depositary Shares.
2001:
ICICI Bank became the first commercial bank from India to list its stock on NYSE.
ICICI Bank announces merger with Bank of Madura.
The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI
Bank. 2002: ICICI Ltd merged with ICICI Bank Ltd to create India‘s second
largest bank in terms of assets.
ICICI assigned higher than sovereign rating by Moody‘s. : ICICI Bank launched
India‘s first CDO (Collateralised Debt Obligation) Fund named Indian Corporate
Collateralised Debt Obligation Fund (ICCDO Fund).
―E Lobby‖, a self-service banking centre inaugurated in Pune. It was the first of its
kind in India.
ICICI Bank launched Private Banking.
1100-seat Call Centre set up in Hyderabad
ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of
housing projects in the county, launched in Pune,
ATM-on-Wheels, India‘s first mobile ATM, launched in Mumbai.
2003:
The first Integrated Currency Management Centre launched in Pune.
ICICI Bank announced the setting up of its first ever offshore branch in Singapore.
The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai,
launched.
ICICI Bank‘s representative office inaugurated in Dubai.
Representative office set up in China.
ICICI Bank‘s UK subsidiary launched.
India‘s first ever ―Visa Mini Credit Card‖, a 43% smaller credit card in dimensions
launched.
ICICI Bank subsidiary set up in Canada.
Temasek Holdings acquired 5.2% stake in ICICI Bank.
ICICI Bank became the market leader in retail credit in India.
2004:
Max Money, a home loan product that offers the dual benefit of higher eligibility and
affordability to a customer, introduced.
Mobile banking service in India launched in association with Reliance Infocomm.
India‘s first multi-branded credit card with HPCL and Airtel launched.
Kisaan Loan Card and innovative, low-cost ATMs in rural India launched.
2005:
ICICI Bank and CNBC TV 18 announced India‟s first ever awards recognising the
achievements of SMEs, a pioneering initiative to encourage the contribution of Small
and Medium Enterprises to the growth of Indian economy.
ICICI Bank opened its 500th branch in India.
ICICI Bank introduced partnership model wherein ICICI Bank would forge an
alliance with existing micro finance institutions (MFIs). The MFI would undertake
the promotional role of identifying, training and promoting the micro-finance
clients and ICICI Bank would finance the clients directly on the recommendation
of the MFI.
ICICI Bank introduced 8-8 Banking wherein all the branches of the Bank would
remain open from 8a.m. to 8 p.m. from Monday to Saturday.
ICICI Bank introduced the concept of floating rate for home loans in India.
First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.
―Free for Life‖ credit cards launched wherein annual fees of all ICICI Bank Credit
Cards were waived off.
ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the
mobile phone.
Private Banking Masters 2005, a nationwide Golf tournament for high networth
clients of the private banking division launched. This event is the largest domestic
invitation amateur golf event conducted in India.
First Indian company to make a simultaneous equity offering of $1.8 billion in
India, the United States and Japan.
Acquired IvestitsionnoKreditny Bank of Russia.
ICICI Bank became the largest bank in India in terms of its market capitalisation.
2006:
ICICI Bank became the first private entity in India to offer a discount to retail investors
for its follow-up offer.
ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in
the international markets.
ICICI Bank subsidiary set up in Russia.
2007:
Introduced a new product – „NRI smart save Deposits‟ – a unique fixed deposit scheme
for nonresident Indians.
Representative offices opened in Thailand, Indonesia and Malaysia.
ICICI Bank became the largest retail player in the market to introduce a biometric
enabled smart card that allow banking transactions to be conducted on the field. A
low-cost solution, this became an effective delivery option for ICICI Bank‘s micro
finance institution partners.
Financial counseling centre Disha launched. Disha provides free credit counseling,
financial planning and debt management services.
Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.
ICICI Bank‘s USD 2 billion 3-tranche international bond offering was the largest
bond offering by an Indian bank.
Sangli Bank amalgamated with ICICI Bank.
ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and
international markets through a follow-on public offer.
ICICI Bank‘s GBP 350 million international bond offering marked the inaugural
deal in the sterling market from an Indian issuer and also the largest deal in the
sterling market from Asia.
Launched India‘s first ever jewellery card in association with jewelry major
Gitanjali Group.
ICICI Bank became the first bank in India to launch a premium credit card — The
Visa Signature Credit Card.
Foundation stone laid for a regional hub in Gandhinagar, Gujarat.
Introduced SME Toolkit, an online resource centre, to help small and medium
enterprises start, finance and grow their business.
ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan
agreement in Singapore.
ICICI Bank became the first private bank in India to offer both floating and fixed
rate on car loans, commercial vehicles loans, construction equipment loans and
professional equipment loans.
In a first of its kind, nation wide initiative to attract bright graduate students to
pursue a career in banking, ICICI Bank launched the ―Probationary Officer
Programme‖.
Launched Bank@home services for all savings and current a/c customers residing
in India
ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.
2008:
ICICI Bank enters US, launches its first branch in New York.
ICICI Bank enters Germany, opens its first branch in Frankfurt.
ICICI Bank launched iMobile, a breakthrough innovation in banking where
practically all internet banking transactions can now be simply done on mobile
phones.
ICICI Bank concluded India‘s largest ever securitisation transaction of a pool of
retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion)
in a multi-tranche issue backed by four different asset categories. It is also the
largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia
(ex-Japan & Australia) since the beginning of 2007.
ICICI Prudential Life Insurance awarded India‟s Most Customer Responsive Insurance
Company. AGC Networks – Economic Times, Customer Responsiveness Awards, 2010.
ICICI Lombard awarded „Most Preferred General Insurance Brand‟ at CNBC Awash
Consumer Awards 2010.
ICICI Bank amongst the top 3 to receive the FE- EVI Green Business Leaders Award,
in the banking industry. >>
InstaBanking
Go Green
Branch free banking
Online Bill Pay
Instep Insure
Motor Insurance
ICICI Bank immobile
1955:
The Industrial Credit and Investment Corporation of India Limited (ICICI)
incorporated at the initiative of the World Bank, the Government of India and
representatives of Indian industry, with the objective of creating a development
financial institution for providing medium-term and long-term project financing to
Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI
Limited.
ICICI emerges as the major source of foreign currency loans to Indian industry.
Besides funding from the World Bank and other multi-lateral agencies, ICICI was
also among the first Indian companies to raise funds from international markets.
1956:
ICICI declared its first dividend of 3.5%.
1958:
Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.
1960:
ICICI building at 163, Backbay Reclamation, inaugurated.
1961:
The first West German loan of DM 5 million from Kredianstalt obtained.
1967:
ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.
1969:
The first two regional offices in Calcutta and Madras set up.
1972:
The second entity in India to set up merchant banking services.
Mr. H. T. Parekh appointed the third Chairman of ICICI.
1977:
ICICI sponsored the formation of Housing Development Finance Corporation.
Managed its first equity public issue
1978:
Mr. James Raj appointed the fourth Chairman of ICICI.
1979:
Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.
1982:
ICICI became the first ever Indian borrower to raise European Currency Units.
ICICI commences leasing business.
1984:
Mr. S. Nadkarni appointed the sixth Chairman of ICICI.
1985:
Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICICI.
1986:
ICICI became the first Indian institution to receive ADB Loans.
ICICI, along with UTI, set up Credit Rating Information Services of India Limited,
India‘s first professional credit rating agency.
ICICI promotes Shipping Credit and Investment Company of India Limited.
1987:
The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first
public issue by any Indian entity in the Swiss Capital Market.
1988:
ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth
Development Corporation (CDC), the first loan by CDC for financing projects in India.
1993:
Promoted TDICI – India‟s first venture capital company.
1994:
ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set
up.
1996:
ICICI Asset Management Company set up.
ICICI Bank set up.
ICICI Ltd became the first company in the Indian financial sector to raise GDR.
1997:
SCICI merged with ICICI Ltd.
Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.
ICICI Ltd was the first intermediary to move away from single prime rate to three-
tier prime rates structure and introduced yield-curve based pricing.
1998:
The name The Industrial Credit and Investment Corporation of India Ltd changed to
ICICI Ltd.
ICICI Ltd announced the takeover of ITC Classic Finance.
1999:
Introduced the new logo symbolising a common corporate identity for the ICICI Group.
ICICI announced takeover of Anagram Finance.
2000:
ICICI launched retail finance – car loans, house loans and loans for consumer durables.
ICICI becomes the first Indian Company to list on the NYSE through an issue of
American Depositary Shares.
2001:
ICICI Bank became the first commercial bank from India to list its stock on NYSE.
ICICI Bank announces merger with Bank of Madura.
The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI
Bank. 2002: ICICI Ltd merged with ICICI Bank Ltd to create India‘s second
largest bank in terms of assets.
ICICI assigned higher than sovereign rating by Moody‘s. : ICICI Bank launched
India‘s first CDO (Collateralised Debt Obligation) Fund named Indian Corporate
Collateralised Debt Obligation Fund (ICCDO Fund).
―E Lobby‖, a self-service banking centre inaugurated in Pune. It was the first of its
kind in India.
ICICI Bank launched Private Banking.
1100-seat Call Centre set up in Hyderabad
ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of
housing projects in the county, launched in Pune,
ATM-on-Wheels, India‘s first mobile ATM, launched in Mumbai.
2003:
The first Integrated Currency Management Centre launched in Pune.
ICICI Bank announced the setting up of its first ever offshore branch in Singapore.
The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai,
launched.
ICICI Bank‘s representative office inaugurated in Dubai.
Representative office set up in China.
ICICI Bank‘s UK subsidiary launched.
India‘s first ever ―Visa Mini Credit Card‖, a 43% smaller credit card in dimensions
launched.
ICICI Bank subsidiary set up in Canada.
Temasek Holdings acquired 5.2% stake in ICICI Bank.
ICICI Bank became the market leader in retail credit in India.
2004:
Max Money, a home loan product that offers the dual benefit of higher eligibility and
affordability to a customer, introduced.
Mobile banking service in India launched in association with Reliance Infocomm.
India‘s first multi-branded credit card with HPCL and Airtel launched.
Kisaan Loan Card and innovative, low-cost ATMs in rural India launched.
2005:
ICICI Bank and CNBC TV 18 announced India‟s first ever awards recognising the
achievements of SMEs, a pioneering initiative to encourage the contribution of Small
and Medium Enterprises to the growth of Indian economy.
ICICI Bank opened its 500th branch in India.
ICICI Bank introduced partnership model wherein ICICI Bank would forge an
alliance with existing micro finance institutions (MFIs). The MFI would undertake
the promotional role of identifying, training and promoting the micro-finance
clients and ICICI Bank would finance the clients directly on the recommendation
of the MFI.
ICICI Bank introduced 8-8 Banking wherein all the branches of the Bank would
remain open from 8a.m. to 8 p.m. from Monday to Saturday.
ICICI Bank introduced the concept of floating rate for home loans in India.
First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.
―Free for Life‖ credit cards launched wherein annual fees of all ICICI Bank Credit
Cards were waived off.
ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the
mobile phone.
Private Banking Masters 2005, a nationwide Golf tournament for high networth
clients of the private banking division launched. This event is the largest domestic
invitation amateur golf event conducted in India.
First Indian company to make a simultaneous equity offering of $1.8 billion in
India, the United States and Japan.
Acquired IvestitsionnoKreditny Bank of Russia.
ICICI Bank became the largest bank in India in terms of its market capitalisation.
2006:
ICICI Bank became the first private entity in India to offer a discount to retail investors
for its follow-up offer.
ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in
the international markets.
ICICI Bank subsidiary set up in Russia.
2007:
Introduced a new product – „NRI smart save Deposits‟ – a unique fixed deposit scheme
for nonresident Indians.
Representative offices opened in Thailand, Indonesia and Malaysia.
ICICI Bank became the largest retail player in the market to introduce a biometric
enabled smart card that allow banking transactions to be conducted on the field. A
low-cost solution, this became an effective delivery option for ICICI Bank‘s micro
finance institution partners.
Financial counseling centre Disha launched. Disha provides free credit counseling,
financial planning and debt management services.
Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.
ICICI Bank‘s USD 2 billion 3-tranche international bond offering was the largest
bond offering by an Indian bank.
Sangli Bank amalgamated with ICICI Bank.
ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and
international markets through a follow-on public offer.
ICICI Bank‘s GBP 350 million international bond offering marked the inaugural
deal in the sterling market from an Indian issuer and also the largest deal in the
sterling market from Asia.
Launched India‘s first ever jewellery card in association with jewelry major
Gitanjali Group.
ICICI Bank became the first bank in India to launch a premium credit card — The
Visa Signature Credit Card.
Foundation stone laid for a regional hub in Gandhinagar, Gujarat.
Introduced SME Toolkit, an online resource centre, to help small and medium
enterprises start, finance and grow their business.
ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan
agreement in Singapore.
ICICI Bank became the first private bank in India to offer both floating and fixed
rate on car loans, commercial vehicles loans, construction equipment loans and
professional equipment loans.
In a first of its kind, nation wide initiative to attract bright graduate students to
pursue a career in banking, ICICI Bank launched the ―Probationary Officer
Programme‖.
Launched Bank@home services for all savings and current a/c customers residing
in India
ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.
2008:
ICICI Bank enters US launches its first branch in New York.
ICICI Bank enters Germany opens its first branch in Frankfurt.
ICICI Bank launched immobile, a breakthrough innovation in banking where
practically all internet banking transactions can now be simply done on mobile
phones.
ICICI Bank concluded India‘s largest ever securitization transaction of a pool of
retail loan assets aggregating to Rest. 48.96 billion (Equivalent of USD 1.21
billion) in a multi-trance issue backed by four different asset categories. It is also
the largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in
Asia (ex-Japan & Australia) since the beginning of 2007.
Business model of ICICI prudential life insurance
ICICI Prudential Life Insurance, the country‟s second-largest life insurer, has turned
profitable during the year-ended March 2010.
The company‟s net profit was estimated at Rest 258 core against a loss of around Rest
780 core in the previous financial year. Low operational costs, high renewal premiums
and a decline in capital-consuming new sales helped the life insurer swing to profit.
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This is the first time the company has reported profits since it started operations in
2001.
“We have significantly brought down our management expenses. Reduction in cost and
increase in renewal premium income helped us report profits,” said a senior executive
of ICICI Prudential. There was no capital infusion during the last financial year.
The management expense ratio for the insurer came down from 11.78 per cent in 2008-
09 to 9.5 per cent in 2009-10.
There are only a handful of profitable life insurance companies which includes SBI Life,
Baja Aliens, Sahara Life and Kodak Life Insurance. In recent months, most insurance
companies have turned their attention to turning profitable and the list is expected to
grow this year.
In order to bring down costs, ICICI Prudential has consolidated its business. “We have
rebooked at our operations and focused on profitable areas. We have completely
reworked our business model and closed branches which were not productive,” the
executive added. In addition, the insurer did not open any branch last year.
A drop in new business income also helped the insurer boost profit. During 2009-10, the
insurer registered a 7 per cent decline in new income collection over 2008-09. Compared
to the Rest 6,813 core collected from the sale of new policies in 2008-09, the insurer
collected Rest 6,334 core in 2009-10. Insurers have to set aside extra capital to meet
solvency requirements. The renewal premium grew 19 per cent during the year.
Insurance companies need capital to expand business and distribution network.
Is the decrease in net interest income (NII) a worry?
No. The decrease in NII is much less than that in the size of the balance sheet. The
margins have improved and as our balance sheet grows, NII will also improve.
You said the loan book would grow by zero to 5 per cent, but there has been a
contraction. So, when do we see a reversal in the trend?
We have resumed growth. If you look at the quarter-on-quarter numbers, there is an
increase. This year, we hope to grow the loan book by 15-20 per cent.
What is the retail-corporate loan mix and will that change this year?
Retail loans are around 43 per cent of the loan book, while wholesale and the
international loans account for another 43 per cent. That mix will remain roughly the
same.
You have said there have been repayments from overseas branches. Is the loan book
growing and what is the plan?
The overseas book will grow around 10 per cent, while the domestic will grow over 20
per cent. Indian companies have just about started going overseas once again, but the
level of activity is nowhere close to the 2007 level.
Your operational expenses have decreased, but there is a limit to belt tightening…
Costs may go up, but the ratios will remain the same. Out cost to average assets was 1.6
per cent.
You planned to open 600 branches last year. How many have you opened and what are
the reasons for the delay?
There is no delay. We have opened around 350 branches. The rest are in advanced
stages of opening. They should be ready by next month.
Are you seeking permission to open more branches? What will be your strategy?
No, we have not sought permission for more branches. The strategy is to capitalize on
the branches that we have. Last year, we opened 500 branches and, in two years, we
would have opened 1,000 branches. We want to capitalize on them.
What is the outlook on the net interest margin, given the impact of the change in the
interest rate regime for savings accounts and the base rate mechanism?
On the savings bank side, there will be some impact on cost of funds, of the order of 12-
15 basis points. We are drawing a strategy to increase the Casa (current account and
savings bank account) ratio so that NIM is not affected.
But the base rate will push up the yield on advances?
Yield will not go up. What is going to change is the method of calculation.
Will you be able to meet the deadline for 70 per cent provision coverage ratio and have
you got an extension from RBI?
We will meet the deadline, which has been revised to March 2011.
How much loan restructuring did you undertake in the fourth quarter and are you
seeing slippages in the accounts that were restructured last year?
No, there are no slippages. We restructured loans of around Rest 250 core, but there a
similar amount waiting for up gradation. So, the restructured amount remained around
Rest 5,300 core.
How many people are you looking to recruit this year?
We will hire anywhere between 5,000 and 7,000.
Asset management of icecap prudential life insurance.
ICICI Prudential Asset Management Company Ltd. is a joint venture between ICICI
Bank, India‟s second largest commercial bank & a well-known and trusted name in the
financial services in India, & Prudential Plc, one of the United Kingdom‟s largest
players in the financial services sectors.
In a span of just over 12 years, the company has forged a position of preeminence
as one of the largest Asset Management Company‘s in the country, contributing
significantly towards the growth of the Indian mutual fund industry.
Our Average Assets under Management (AAUM) as on Dec 2010 month-end in
Mutual Fund Schemes stood at Rest. 65876.5 Cores. This is in addition to our
Portfolio Management Services, inclusive of EPFO*, and International Advisory
Mandates for clients across international markets in asset classes like Debt, Equity
and Real Estate with primary focus on risk adjusted returns.
As an Asset Management Company, we have over 15 years of experience and are
currently managing a comprehensive range of schemes of more than 46 Mutual
funds and a wide range of PMS Products for our investors, spread across the
country. We service this investor base with our own branch network of over 160
branches and a distribution reach of over 42,000 channel partners.
Funds of ICICI prudential life insurance
Equity funds
Equity schemes endeavor to provide potential for high growth and returns with a
moderate to high risk by investing in shares. Such schemes are either actively…
Balanced schemes
Hybrid Schemes or balanced schemes bridge the gap between equity and debt schemes.
This category is characterized by a portfolio that is made up of a mix of e…
Fixed income scheme funds
Fixed Income Schemes primarily invests in bonds and other debt instruments, and will
suit investors who want to optimize current income assuming low to modern…
Advisory schemes of icecap prudential.
Advisory Series is an open ended asset allocation fund, in the nature of a Fund of
Funds. Its five investment plans have been specifically designed to suit the.
Agency functions of ICICI prudential life insurance.
The ICICI prudential life insurance has a tie up with the Post Office Savings Bank
(POSB) that constitutes the mainstay of the Financial Services provided by the
Department of Posts. The Post Office Savings Bank is the oldest and largest banking
institution in the country. It operates more than 20.50 core savings accounts. The Post
Office Savings bank Scheme is an agency function performed by the Department of
Posts on behalf of the Ministry of Finance, Government of India. Savings Bank
facilities are provided through a network of more than 1, 54,000 post offices. There are
number of schemes provided by the Post Office Savings Bank and these include Savings
Account Schemes, Recurring Deposit Schemes, Time Deposit Schemes, Monthly Income
Schemes, Public Provident Fund Schemes, Kinas Vices Parts, National Savings
Certificates and Senior Citizens‟ Savings Scheme.
The salient features of all these Small Savings Schemes are as under:
SCHEME
Interest Payable,
Rates, Periodicity
etc.
Investment Limits and
Denominations
Salient features including Tax
Rebate
1. Post
Office
Savings
Account
3.5% per annum on individual/ joint accounts. Minimum INR 50/-. Maximum INR 1,
00,000/- for an individual account. INR 2, 00,000/- for joint account. Cherub facility
available. Interest Tax Free.2. 5-Year Post Office Recurring Deposit AccountOn
maturity INR 10/- account fetches INR 728.90/-. Can be continued for another 5 years
on year to year basis.
Rate of interest 7.5% (quarterly compounded)Minimum INR 10/- per month or any
amount in multiples of INR 5/-. No maximum limit.One withdrawal unto 50% of the
balance allowed after one year. Full maturity value allowed on R.D. Accounts restricted
to that of INR 50/- denomination in case of death of depositor subject to fulfillment of
certain conditions. 6 & 12 months advance deposits earn rebate. 3. Post Office Time
Deposit Account Interest payable annually but calculated quarterly.
Period Rate
1 yr. A/c 6.25%
2 yr. A/c 6.50%
3 yr. A/c 7.25%
5 yr. A/c 7.50%Minimum INR 200/- and in multiple thereof. No maximum
limit.Account may be opened by individual. 2, 3 & 5 year account can be closed after 1
year at discount. Account can also be closed after six months but before one year
without interest. The investment under this scheme qualifies for the benefit of Section
80C of the Income Tax Act, 1961 from 1.4.2007.4. Post Office Monthly Income
Account 8% per annum payable i.e. INR 80/- will be paid every month on a deposit of
INR 12000/-. In multiples of INR 1500/- Maximum INR 4.5 lakes in single account and
INR 9 lakes in joint account.Maturity period is 6 yean Can be prematurely encased
after one year but before 3 years at the discount of 2% of the deposit and after 3 years
at the discount of 1% of the deposit. (Discount means deduction from the deposit.) A
bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts
opened on or after 8.12.075. 15 year Public Provident Fund Account8% per annum
(compounded yearly).Minimum INR 500/- Maximum INR 70,000/- in a financial year.
Deposits can be made in lump sum or in 12 installments.Deposits qualify for deduction
from income under Sec. 80C of IT Act. Interest is completely tax-free. Withdrawal is
permissible every year from 7th financial year. Loan facility available from 3rd
Financial year. No attachment under court decree order.6. Kinas Vices PetraMoney
doubles in 8 years & 7 months. Facility for premature encashment.
Rate of interest 8.4% (compounded yearly)No limit on investment. Available in
denominations of INR 100/-, INR 500/-, INR 1000/-, INR 5000/-, INR 10,000/-, in all Post
Offices and INR 50,000/- in all Head Post Offices.A single holder type certificate may be
issued to an adult for himself or on behalf of a minor or to a minor, can also be
purchased jointly by two adults7. National Savings Certificate (VIII issue)8% Interest
compounded six monthly but payable at maturity. INR 100/- grows to Rest 160.10 after
6 yeanMinimum INR 100/- No maximum limit available in denominations of INR 100/-,
500/-, 1000/-, 5000/- & INR 10,000/-.A single holder type certificate can be purchased by
an adult for himself or on behalf of a minor or to a minor. Deposits quality for tax
rebate under Sec. 80C of IT Act.
The interest accruing annually but deemed to be reinvested will also qualify for
deduction under Section 80C of IT Act.8.Senior Citizens Savings Scheme9% per
annum, payable from the date of deposit of 31st March/30th Sept/31st December in the
first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept
and 31st DecemberThere shall be only one deposit in the account in multiple of INR
1000/- maximum not exceeding INR fifteen laky. Maturity period is 5 yean A depositor
may operate more than an account in individual capacity or jointly with spouse. Age
should be 60 years or more, and 55 years or more but less than 60 years who has retired
on superannuation or otherwise on the date of opening of account subject to the
condition that the account is opened within one month of receipt of retirement benefits.
Premature closure is allowed after one year on deduction of 1.5% interest & after 2
years 1% interest. TDS is deducted at source on interest if the interest amount is more
than INR 10,000/- p.a. The investment under this scheme qualifies for the benefit of
Section 80C of the Income Tax Act, 1961 from 1.4.2007.
Electronic Money Order
Electronic Money Order (memo) launched on 10.10.2008
It is a system that facilitates remittance of MOs electronically, for which post offices
should have Connectivity by WAN/ Broadband. These Connected Hoes and Sops will
transmit emus for other connected Hoes and Sops (including Sops and Boss in account
with them).
Salient Features
The tariff structure would be the same as that for ordinary MO with the following
features:
* Messages in standard Codes
* Tracking facility through 18 digit PNR No
* Bulk booking of emus on the basis of lists provided by the Bulk Remitter;
uploading data available in soft copy.
* Payment of bulk emus through consolidated list
* MIS for sender and payee in the case of bulk booking / payment.
* After payment, the post office of payment to upload payment particulars to the
central server. Payment details for non-connected post offices to be updated by its Head
Post Office.
* Payment information can be obtained through SMS.
Instant Money Order (imp)
Instant Money Order (imp) is an online domestic money transmission service intended
for a market clientele requiring instant money remittance. This service enables the
customer to receive money in minutes from any of the post offices providing imp
service. The service was introduced on 20th January 2006. Under this service, a person
can send amount from INR 1000/- up to INR 50,000/- in one transaction. Money will be
disbursed to the payee at any of the imp Post Offices in India other than the office of
booking on presentation of 16 digit imp number and photo identity proof. At present
imp service is available from more than 2100 locations across the country.
International Money Transfer Service
This service, operated in association with Western Union Financial Services
International, provides the customers the facility of receiving remittances from 205
countries and territories on a real time basis. The service is currently available more
than 8500 post offices.
Electronic Clearing Service (ECS)
The Electronic Clearing Service (ECS) provides an alternative method of effecting
bulk payment transactions like periodic (monthly/quarterly) payments of
interest/salary/pension by Banks/Companies/Government Departments. The
transactions under this scheme move from a single User source (i.e.
Banks/Companies/Government Departments) to a large number of Destination Account
Holders (Customers/Investors). This scheme obviates the need for issuing and handling
paper instruments and thereby facilitates improved customer service by the Banks and
Companies/Corporations/Government Departments effecting bulk payments.
The Electronic Clearing Service is being offered in the Department of Posts in
connection with payment of monthly interest under Monthly Income Scheme (MIS),
which offers depositors the facility of getting MIS interest automatically transferred
and credited into their SB account on due date at the designated Bank of their choice. It
is a value addition to MIS interest payment, which provides more comfort level to MIS
account holders, as it eliminates the requirement for issuing and handling paper
instruments. Currently, the service is available in the Department of Posts at following
36 locations:
1. Headband (Gujarat) 19. Hubble (Karnataka)
2. Bangalore (Karnataka) 20. Jabalpur (MP)
3. Bhubaneshwar (Orison) 21. Jodhpur (Rajasthan)
4. Collate (West Bengal) 22. Kohekohe (Calico) (Karalla)
5. Chandigarh (Punjab) 23. Natick (Maharashtra)
6. Chennai (TN) 24. Punjabi (Maharashtra)
7. Gujarat (Assam) 25. Pond cherry (TN)
8. Hyderabad (AP) 26. Soapier (Maharashtra)
9. Japer (Rajasthan) 27. Sutra (Gujarat)
10. Kaptur (UP) 28. Thrice (Karalla)
11.Mumbai Maharashtra 29. Tiruchirapally (TN)
12. Napery (Maharashtra) 30. Torpor (Karalla)
13. New Delhi 31. Sheila (HP)
14. Patina (Bihar) 32. Salinger (West Bengal)
15. Thiruvananthapuram (Karalla) 33. Burden (West Bengal)
16. Baroda (Gujarat) 34. Draper (West Bengal)
17. Defraud (Astrakhan) 35. Rapier (Chattisgarh)
18. Galion (MP) 36. Rancho (Harahan)
Note: For further details, Post Offices at these locations may be contacted.
Distribution of Pension Products of ICICI Prudential Life Insurance Company Ltd.:
Department of Post has tied-up with ICICI Prudential Life Insurance Company Ltd. in
September, 2008 to retail their products through select Post Offices on Referral
Model. Initially, Post Offices started distributing Pension Products only. Now,
products of more solution categories such as Education, Health & Protection and
Wealth Creation have also been added in the distribution basket. Currently, these
products are available from all the 817 Head Post offices of the country.
Note: For further details, any Head Post Office may be contacted.
Retailing of Non-life Insurance Products of Oriental Insurance Company
Department of Posts is retailing following 15 Oriental Insurance Company‟s Products
through its post offices in all over the country:-
1. Personal Accident Insurance
2. Junta Personal Accident Insurance
3. Medicaid Insurance
4. Householders Insurance
5. Shopkeepers‟ Insurance
6. Sweet Home Insurance
7. Fire Insurance
8. Cattle Insurance
9. Kiss an Agricultural Pump set Insurance
10. Rajrajeshwari Manila Kalian Bema Yoga
11. Bhagyashree Child Welfare Policy
12. Universal Health Insurance
13. Kiss an Package Policy
14. Nark Suresh Policy
15. Jan Arroyo Policy
Details about the above Oriental Insurance Company can be obtained from the nearest
Post Office.
Postal Life Insurance
Postal Life Insurance (PLI), introduced in 1884, is the oldest life insurance
scheme for the benefit of Government employees. Initially meant only for the Postal
employees, today it caters to employees of the civil and military personnel of the central
and state governments, local bodies, government aided educational institutions,
universities, nationalized banks, many autonomous and financial institutions, and
public sector undertakings of the central and state governments. In a major innovation,
Rural Postal Life Insurance (RPLI) scheme was also introduced in 1995 for the benefit
of the entire rural populace.
PLI offers the following types of policies: -
I) Whole Life Assurance (Suresh)
ii) Convertible Whole Life Assurance (Susitna)
iii) Endowment Assurance(Santos)
iv) Anticipated Endowment Assurance for 15 & 20 years (Seminal)
v) Joint Life Endowment Assurance (Yoga Suresh)
Under RPLI, there are first four common plans and one additional plan “10
year RPLI”. Their trade names are as indicated below: -
I) Whole Life Assurance (Gram Suraksha)
ii) Convertible Whole Life Assurance (Gram Susitna)
iii) Endowment Assurance (Gram Santos)
iv) Anticipated Endowment Assurance for 15 & 20 years (Gram Seminal)
v) 10 year RPLI (Gram Praia)
An Extra Departmental Agents Group Insurance Scheme was introduced with
effect from 01.04.1992 and a monthly subscription of INR 10/- is deducted from the
salary of its beneficiaries. As on 31.03.2004 there were 2, 57,695 members under
this scheme. In the event of death of its beneficiary, an amount of INR 10,000/- is paid
out of the insurance fund, in addition to accretion in the savings and the interest on
it. On 31.03.04 the balance in this scheme was INR 530.1 Million.
International Relations
India Post is a member of the Universal Postal Union (UPU) which is a
specialized agency of the United Nations Headquartered at Berne, Switzerland with 190
member countries. India is its member since 1876 and holds an important position in
the various organs of the UPU viz. – Congress, Council of Administration, Postal
Operations Council and International Bureau. India Post offers letter mail, parcel,
money order and international speed post services to its customizing
Customer Care
India Post lays maximum stress on customer care in rendering its services and also to
sort out the grievances that arise in the course of providing these services. Customers
can lodge their complaints about our services at there nearby post office which are
authorized to collect them. The complaints are consolidated at a customer care centre
which registers these cases on the website to obtain a reply online for a final reply at the
earliest. There are 1116 computerized customer care centers to handle public grievances
online. The Department also provides the facility of online registration and response to
complaints at its website others like 28-year-old Narrate Sondheim, a Delhi-based
middle-level, general insurance marketing professional, found the prospect of growing
with a newly established company irresistible. „As companies expand, better
opportunities will arise,‟ says Sondheim, who joined a leading private general insurance
company in 2002.
There are many such enthusiasts who belie the dull-dog image that insurance carried so
far. Amy Sabena, 29, Bangalore-based zonal manager for ICICI Prudential, moved into
insurance from a sales job with paint multinational. „This is a growth industry with a
proven revenue model,‟ says Sabena, who signed up as sales manager in 2000. The good
news is that many more insurance jobs continue to be created even as you read this. Is
there a job out there for you? Find out.
Life insurance. With private players still establishing themselves, the sales function is
crucial and openings abound at the entry level, both for insurance advisors/agents and
in banc assurance. „Many of the jobs are in franchises of insurance companies, where
you need to be a graduate with two years experience,‟ says Tarn Sheath of Shiplaps
Consultants, Mumbai-based human resource consultants. The compensation: Rest
48,000-96,000 per annum plus sales-linked incentives.
„As many as 30 insurance advisors report to one unit manager, who, in turn, reports to
the sales manager,‟ says Rona Nair, consultant, Ma Foil, Chennai-based HR services
provider. Unit managers are employed directly by insurance companies at the entry
level. „For such positions, graduates with 5-6 years experience in managing sales teams
in industries like FMCG, consumer durables and pharmacy are required,‟ says Subaru
Mira, chief, human resources, ICICI Prudential. The salary is likely to be Rest 2-5 laky
per annum plus incentives.
commissions tend to be heftier in life insurance, though experience and salaries are
roughly the same. General insurance also provides opportunities for people working in
related fields. For instance, „people in the automobile industry can move into auto
insurance,‟ explains Sheath.
m wa
Middle and senior levels. Middle-level managers are in great demand, and this is likely
to increase as companies grow. „Sales managers are poached in large numbers by
competition or other financial services companies,‟ says Pooja Gupta, consultant,
Watson Wyatt, international consultants.
For agency sales, you need 10-13 years experience, while for bancassurance, it‟s three-
five years. Companies look for experience in financial institutions, consumer durable
and FMCG companies, or organisations with strong direct sales functions. Middle-level
salaries in the banc assurance functions can go up to Rest 4 laky per annum, and in
agency sales unto Rest 7 laky per annum.
Most jobs at the senior level involve setting up internal processes and systems for sales
and marketing, and creating distribution channels. For instance, 30-year-old Bin yak
Data has been setting up a distribution infrastructure for ICICI Prudential for
alternative distribution routes to agency sales. This involves developing channels like
banc assurance. Like Data, you need 6-15 years experience in similar tasks. Salaries can
go up to Rest 15 laky per annum or more.
This is the next category where a lot of jobs are being created both in the general and
life insurance sectors. But the best is yet to come. „After a reasonable number of policies
are sold, there‟ll be more openings in operations,‟ says Ramachandran. At the moment,
jobs are available in areas like underwriting and claims processing.
At the entry level, most companies look for people with 1-2 years in back-end functions
from industries like BPO and telecom. „But as companies grow, they are recruiting
fresher who are trained on the job,‟ says Mira. For some jobs, a pharmacy background
is preferred: for instance, in the underwriting area.
At the middle level, jobs involve managing entry-level employees. „They have to ensure
that all policies relating to quality and adherence to global standards are met,‟ says
Gupta. You need 4-5 years experience in financial institutions or Bops. At the senior
level, the jobs mostly involve heading regions or functions.
At the entry level, salaries range from Rest 1.2 laky to Rest 2.5-3 laky per annum. At the
first supervisory level, salaries are Rest 2.5-4 laky, plus performance bonus. In the
middle level, with 2-4 years experience, salaries can go up to Rest 4-6 laky. At the senior
level, starting with regional heads, salaries are Rest 15-22 laky.
Functional jobs: Old Favorite
As in other industries, insurance companies too need people in finance, accounting and
HR. „Most are going to B-schools or hiring people with about two years in these jobs,‟
says Gupta. Salaries at the entry level can go up to Rest 3.5 laky per annum. At the mid-
level, with 4-7 years experience, you can get Rest 4-7 laky. Senior-level pays go up to
Rest 12 laky or more.
Actuarial jobs. The actuarial area is bound to open up. „Since actuaries are in short
supply, the market is giving a premium for such individuals,‟ says Sheath. You can join
a life insurance company as an actuarial trainee. „An actuarial trainee should be a
member of the Actuarial Society of India or a similar institution and have completed at
least 2-3 papers of the course,‟ says Nair. In some large companies, you can even join up
with a degree in statistics and complete the course as you work. While the starting
salary for trainees is up to Rest 3 laky per annum, with 5-7 years experience, the salary
shoots up to Rest 5-8 laky.
„Positions grow in this industry. Every year, the number of advisors trebles,‟ says
Sabena, who‟s been promoted twice in two years. Aside from the sheer number of jobs,
which have boomed with the arrival of private players, attitudes to jobs in the insurance
sector have changed as well, the babes of yore are making room for wannabe corporate
hotshots. It‟s not even just the pays, the perks and the prospects.
BIRLA SUNLIFE INSURANCE
Introduction:-
The Birla Sunlife Insurance Company was established in the year 2006, with a joint
venture of two leading companies‟ likely Aditya Birla group and Sunlife
financials(USA). Birla Sun Life Insurance pioneered the unique Unit Linked Life
Insurance Solutions in India. Within 4 years of its launch, Birla Sunlife Insurance
hascemented its position as a leading player in the Private LifeInsurance Industry
Birla Sunlife insurance has been focus on Investment LinkedInsurance Products,
supported with protection products to maintain leadership in product innovation. Multi
distribution channels- Direct Sales Force, Alternate Channels and Group offering
convenient channels of purchase to customers. It has established Web-enabled IT
systems for superior customer services to have issued policies over the Internet.
Corporate governance and a high degree of transparency in all business practices and
procedures to have an operational Business Continuity Plan and all Strong
fundamentals based on the Aditya Birla group‟s local insight and Sun Life financials‟s
global expertise.
Vision:-
To create long term value along with market leadership
Missions:-
help people mitigate risks of life, accident, health and
money at all stages and under all circumstances
the financial future of our customers, including
enterprises.
Values:-
BSLI has contributed significantly to the growth and development of the life insurance
industry in India by introducing unique Unit Linked Life Insurance Solutions, pure
term plan and a slew of innovative products. By adopting multi-distribution channels
such as Direct Sales Force, alternate channels and convenient points of purchase,
including selling its policies through the ban assurance route and through the internet,
BSLI hasrevolutionized the entire insurance policy-buying experience.
Corporate governance and a high degree of transparency in all itsbusiness practices and
procedures, besides world-class processing capabilities and well-prepared business
continuity planning, have brought about the credibility that BSLI enjoys among its
patrons. The process of getting sales illustrations signed by customers, offering a free
look period on all policies, which are now standard norms followed by the insurance
industry, were introduced by BSLI
BSLI offers a spectrum of products to meet the growing needs ofindividuals and group
insurance through a multi channel distribution network. The company has quadrupled
its distribution network to over 600 branches and more than 10000 advisors. With
rapidly growing national footprint. The company is now positoned to capture an
increased market share in the growing life insurance market.
SWOT ANALYSIS
STRENGTHS:-
v Quality product
v Large networks
v Leading companies in the insurance sector
v Strong brand name Aditya Birla
v Over all market share 7% and above.
WEEKNESS
v Less awareness about most of the products of insurance in the market
v Low advertising
v Focus only on urban segments
OPPORTUNITIES
v Scope for opening new branches in state/country
v More branches will help in expanding buisness
v Increase in population will lead to increase in buisness
v Recruitment canditates helps to increase the buisness
THREATS
v Market uncertanity (Recession)
v . Consumers do not invest easilyConsumer perception of Birla sunlife insurance
companey is purely private
PLANS OF BIRLA SUNLIFE LIFE INSURANCE
BSLI Term Plan
Your BSLI‟s Term Plan is a low premium, pure risk coverage plan,
which takes care of your financial commitments and secures your
family‟s future should anything unfortunate happen to you.
Low Costs, High Cover
This plan provides you all the benefits of life insurance at affordable
costs.
Riders
The plan offers three riders at nominal costs– Accidental Death and
Dismemberment Rider, Critical Illness Rider and Waiver of Premium
Rider.
Sum Assured Rebates
The plan offers attractive rebate for face value amounts equal to or
greater than Rest. 5 Laky for regular pay. In case of single pay, this
rebate is available for amount greater than or equal to Rest. 7 Laky.
Tax benefits
Investments in this plan are eligible for tax benefits under Sections 80C
and 10(10D) of the Income Tax Act.
More Benefits
• Maturity Benefit – NIL
• Death Benefit - In the event of your unfortunate death, the nominee receives the
Sum Assured.
• Special benefits for women - The plan offers favorable premium rates for female
clients. BIRLA SUNLIFE HEALTH PLANSPlan Summary
Entry Age 18 – 55 years
Minimum Face Amount
(Sum Assured)
Rest. 2, 50,000 in case of single premium & Rest.
2,00,000 in case of regular premium for a person
fulfilling the eligibility criteria
Benefit period As per policy terms 5,10,15,20 or 25 years
Premium Paying Period Single pay or over the duration of the plan
Premium Payment
Frequency
Annually, semi-annually, quarterly, monthly (through
ECS) or one-time payment
Grace Period
Pay your premium within 30 days after the premium
due dates
Amount due to nominee in
event of death of the life
insured Sum Assured
Maturity benefit Nil
Riders
Accidental Death and Dismemberment Rider and
Critical Illness Rider, Waiver of Premium Riders, but
only at the time of purchase of policy
Tax Benefits
Under Sec 80C and Sec 10(10D) of the Income Tax Act,
1961
BIRLA SUNLIFE CHILDRENS PLAN
A child is a source of joy for every parent. You work towards ensuring that you have
the means to meet the big future expenses of your child, be it for higher education,
marriage or any other dreams that you have for your child.
Burlap Sun Life Insurance Children‘s Future Solutions are designed to help you
build a corpus that allows you to meet the major expenses of your child in future.
Besides providing you life cover to ensure that your child‘s dream is secured, they
also offer you the choice of guaranteed returns or the flexibility to manage your
fund options to make your money grow as per your needs.
To know more about our plans and to get recommendations on the plan best suited
to your needs, call for a Burlap Sun Life Insurance Financial Advisor child is a
source of joy for every parent. You work towards ensuring that you have the means
to meet the big future expenses of your child, be it for higher education, marriage
or any other dreams that you have for your child.
Burlap Sun Life Insurance Children‘s Future Solutions are designed to help you
build a corpus that allows you to meet the major expenses of your child in future.
Besides providing you life cover to ensure that your child‘s dream is secured, they
also offer you the choice of guaranteed returns or the flexibility to manage your
fund options to make your money grow as per your needs
BIRLA SUNLIFE RETIREMENT PLAN
During retirement, income stops but the expenses don‟t. With inflation increasing the
cost of basic essentials, your savings today might not suffice meeting the cost of
necessities throughout the retired life. It is therefore important to start saving early and
in a planned manner for a comfortable, stress-free retired life. What is also important is
to determine your goal for the retirement corpus basis your projected needs during
retired life.
Burlap Sun Life Insurance Retirement Solutions ensure that you enjoy a secure and
happy retired life.
Our retirement plans that help you build a corpus that lasts throughout your retired
life. So, whether you wish to retire early and start your own business or lead a
leisurely retired life, make it the best years of your
CONCLUSION
In law and economics, insurance is a form of risk managementprimarily used
to hedge against the risk of a contingent, uncertainloss. Insurance is defined as the
equitable transfer of the risk of a loss, from one entity to another, in exchange for
payment. An insurer is a company selling the insurance; an insured, or policyholder, is
the person or entity buying the insurance policy. The insurance rate is a factor used to
determine the amount to be charged for a certain amount of insurance coverage, called
the premium. Risk management, the practice of appraising and controlling risk, has
evolved as a discrete field of study and practice.
The transaction involves the insured assuming a guaranteed and known relatively small
loss in the form of payment to the insurer in exchange for the insurer‟s promise to
compensate (indemnify) the insured in the case of a financial (personal) loss. The
insured receives a contract, called the insurance policy, which details the conditions and
circumstances under which the insured will be financially compensated.
In some sense we can say that insurance appears simultaneously with the appearance of
human society. We know of two types of economies in human societies: natural or non-
monetary economies (using barter and trade with no centralized nor standardized set of
financial instruments)
