Comparison between traditional plan & ulip’s

Comparison between traditional plan & ULIP’s

EXECUTIVE SUMMARY

As the people are becoming more and more and aware of their Life Style and

Income level. they need a plan, which has an optimum balance between their Investment and

Savings. They require an integrated financial plan for investment.

The customer requires those investment options, which provide them with flexibility and

Liquidity and tax benefit.

Among the various other investment options, Insurance has gained a prominent place .It

provides the policyholder with the benefit of Life Protection and at the same time allows him

to take the benefit of the fluctuations of the share market.

Thus Life Insurance has taken a very vital position as a wholesome investment option.

Life Insurance is gaining public awareness and interest very rapidly. It was till now been

thought as a way to insure lives, But, recently it is emerging as a prominent Investment

avenue.

It has come up as a wholesome Investment avenue & provides the benefit of flexibility,

Liquidity and Life protection. Along with added benefits like the rider attachments which

protect the policyholder from various kinds of diseases and accident etc.

Objectives of the Study:

1. To know aware of investing in ULIP’s and Traditional plan’s

2. To Study and Compare the Traditional Life Insurance Plans and ULIP’s with
respect to ICICI Prudential life Insurance.
3. To know the factors influence while purchasing life Insurance plans.

4. To know the factors influence while purchasing the particular category of plan
•

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•
Data source:
• Primary Data: Personal interactions, Observations
Training programs. Through Questionnaire
Secondary Data: Study material by IRDA and ICICI Prudential.
Related websites,
Past records of ICICI Prudential.&
Brochures and pamphlets of ICICI Prudential

Sampling:
a) Population : People of Hubli city

b) Size : 100 size

c) Method : Random sampling

Need for study:
After the crises all over world market condition are critical so I am study because
of what is impact on life insurance.

Scope of study:
The scope of study is limited to Hubli city and the sample size is 100

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Findings
 Brand Name of the company is the main reason for the advisors to join ICICI

Prudential followed by product portfolio and excellent support from the company.

 Almost all of them are satisfied with the services offered to them.

 As the endowment products, don’t have much liquidity option most people follow the

Market linked product.

 Almost all respondent are investing in unit linked product in ICICI prudential life

insurance.

 Risk cover is the most important factor as per the respondents followed by

investment and savings.

 In ICICI pru life insurance have facing lack of advertisings.

 Most of the respondents are satisfied from the return, risk cover and tax savings
provided by the products to its customers

LIMITATION

 Not single work is exception to the limitation every work every work has got its

limitations. It is assumed that the sample selected represents entire population.

 Another limitation of the project was that the study and the survey were conducted

in Hubli city only.

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Suggestions:

 Continuous bombardment of Advertisement by ICICI Prudential as a Life Insurance

Company for a common man as well as for well educated and good salaried people.

 The company has concentrate increases on premium 20000-50000.

 Look for the way to make customer highly satisfied with respect to returns.

 Premium and initial charges to be reworked as, the customer is dissatisfied with there.

Conclusion

Every study and project needs to be concluded. Hence, based on the study of

ICICI Prudential and its products in brief, and also conducting a survey on the customers and

advisors sales function towards the products offered and services provided by ICICI

Prudential, I have arrived on a conclusion that

ICICI Prudential Life’s market share stood at 11.8%, for 10-month ended January 31,
2009, making it the leading private life insurance player. As on January 31, 2009, the
company’s assets under management (AUM) stood at Rs 28,515 crore. The company also has
one of the largest distribution networks amongst private life insurers in India with over 2,100
branches (including 1,116 small-offices in rural India), an advisor base of over 2,90,000 and
18 banc assurance partners, as on January 31, 2009. Since inception, ICICI Prudential Life
has sold over 90 lakh policies.

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INTRODUCTION
INSURANCE:
The insurance industry provides protection against financial losses resulting from a
variety of perils. By purchasing insurance Policies, individual and businesses can receive
Reimbursement for losses due to car accidents, theft of property, and fire and storm damage,
medical expenses and loss of income due to disability or death.
The insurance industry consists mainly of insurance carriers (or insurers) and insurance
agencies and brokerages. In general, insurance carriers are large companies that provide
insurance and assume the risks covered by the policy. Insurance agencies and brokerages sell
insurance policies for the carriers. While some of these establishments are directly affiliated
with a particular insure and sell only that carriers policies, many are independent and are thus
free to market the policies of variety of insurance carriers. In addition to supporting these two
primary components, the insurance industry includes establishments that provide other
insurance-related services, such as claims adjustment or third-party administration of
insurance and pension funds.

Insurance carriers assume the risk associated with annuities and insurance policies
and assign premiums to be paid for the policies. In the policy, the carrier states the length and
conditions of the agreement, exactly which losses it will provide compensation for, and how
much will be awarded. The premium charged for the policy is based primarily on the amount
to be awarded in case of loss, as well as the likelihood that the insurance carrier will actually
have to pay. In order to be able to compensate policyholders for their losses, insurance
companies invest the money they receive in premiums, building up a portfolio of financial
assets and income-producing real estate, which can then be used to pay off any future claims
that may be brought.
About ICICI Prudential Life Insurance: ICICI Prudential Life Insurance Company
is a joint venture between ICICI Bank and Prudential plc. It was one of the first players to
commence operations when the insurance industry was opened to the private sector in 2000.
For the first quarter ended June 30, 2007, the company garnered Rs. 987 crore of weighted
retail + group new business premiums and has underwritten over 5 million policies since

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inception. The company has a network of over 680 offices, over 235,000 advisors; as well as
23 bank partners. It is also the only life insurer in India to be assigned AAA (Ind) credit
rating from Fitch Ratings. For the past six years, ICICI Prudential has retained its position as
the No. 1 private life insurer in the country, with a wide range of flexible products that meet
the needs of the Indian customer at every step in life. To know more about the company
LIFE INSURANCE:
Life insurance can be defined as “Life Insurance provides a sum of money if the
person who is insured dies while the policy is in effect”.
Life insurance is a product that helps you protect your dependents from financial
difficulties in the unfortunate event of your death or disability depriving them of the financial
support that they get today. When you buy a life insurance policy, essentially you enter into a
contract with an insurance company under which you promise to make periodic payments to
it (the premium). The insurance company in return promises to pay to your nominee's sum of
money upon your death or upon occurrence of the events specified in the contract.

Usually the contract provides for –
 Payment of an amount, on the date of maturity or at specified periodic
intervals or at death, if it occurs earlier.
 Periodical payment of insurance premium by the assured, to the corporation
who provides the insurance.
INSURANCE MARKET IN INDIA:
India with about 200 million middle class household shows a huge untapped potential
for players in the insurance industry. Saturation of markets in many developed economies has
made the Indian market even more attractive for global insurance majors. The insurance
sector in India has come to a position of very high potential and competitiveness in the
market. Innovative products and aggressive distribution have become the say of the day.
Indians, have always seen life insurance as a tax saving device, are now suddenly turning to
the private sector that are providing them new products and variety for their choice.
Life insurance industry is waiting for a big growth as many Indian and foreign companies are
waiting in the line for the green signal to start their operations. The Indian consumer should
be ready now because the market is going to give them an array of products, different in
price, features and benefits. How the customer is going to make his choice will determine the
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future of the industry.

The insurance industry in India can broadly classified in two parts. They are,
 Life insurance.
 Non-life (general) insurance.
BRIEF HISTORY OF INSURANCE
The business of insurance started with marine business. The first insurance policy was
issued in 1583 in England.
Some of the important milestones in the insurance business in India are:
1818: -The British introduce to India, with the establishment of the Oriental Life Insurance
Company in Calcutta.
1850: - Non life insurance debuts, with Triton Insurance company.
1870: - Bombay Mutual Life Assurance Society is the first India-owned life insurer.
1907: - Indian Mercantile Insurance is the first Indian non-life insurer.
1912: -The Indian life assurance Companies act enacted to regulate the life insurance
business.
1938: - The insurance act, which forms the basis for most current insurance laws, replaces
earlier act.
1956: - Life insurance nationalized, government takes over 245 Indian and foreign insurers
and provident societies.
1972: - Non Life insurance nationalized, GIC set up.
1993: - Malhotra Committee, headed by former BBI governor R.N. Malhotra, set up to draw
up a blue print for insurance sector reforms.
1994: -Malhotra Committee recommends re-entry for private players, autonomy to PSU
insurers.
1997:-Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up.
2000:-IRDA starts giving licences to private insurers, ICICI Prudential and HDFC Standard
Life first private insurers to sell a policy.
2002:- Banks were allowed to sell insurance plans, as TPAs enter the scene, insurers start
settling non-life claims in the cashless mode.

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Need for study:
After the crises all over world market condition are critical so I am study because
of what is impact on life insurance.

Scope of study:
The scope of study is limited to Hubli city and the sample size is 100

Objectives of the Study:

• To know aware of investing in ULIP’s and Traditional plan’s

• To Study and Compare the Traditional Life Insurance Plans and ULIP’s with
respect to ICICI Prudential life Insurance.
• To know the factors influence while purchasing life Insurance plans.

• To know the factors influence while purchasing the particular category of plan
•

THE INSURANCE REGULATORY AND DEVELOPMENT
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AUTHORITY:
Reforms in the Insurance sector were initiated with the passage of the IRDA bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in April
2000 has fastidiously stuck to its schedule of framing regulations and registering the private
sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the IRDA’s
online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to sell their
products, which are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a framework
of globally compatible regulations. In the private sector 14 life insurance and 9 general
insurance companies have been registered

Objective of IRDA:
The main objectives of IRDA are:
 To take care of the policy holders interest
 To open up the insurance sector for private sector
 To ensure continued financial soundness and solvency
 To regulate insurance and reinsurance companies
 To eliminate dishonesty and unhealthy competition
 To supervise the activities of the intermediaries
 To amend the insurance act ,lic act and the general business nationalization act.

Duties and Power of IRDA:
 To regulate ,promote and ensure orderly growth of the insurance business
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 To exercise all the powers and functions of the controller of insurance
 To protect the interest of the policy holders in settlement of claims and terms and
conditions of policies
 To promote and regulate professional organizations connected with insurance
business.
 To regulate ,promote and ensure orderly growth of the insurance business
 To exercise all the powers and functions of the controller of insurance
 To protect the interest of the policy holders in settlement of claims and terms and
conditions of policies
 To promote and regulate professional organizations connected with insurance
business.
 To regulate investment of funds
 To regulate margin of solvency
 To adjudicate disputes between insurers and intermediaries

FUNCTIONS OF IRDA:

 Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend
or cancel such registration;
 Protection of the interests of the policy holders in matters concerning assigning of
policy, nomination by policy holders, insurable interest, settlement of insurance claim,
surrender value of policy and other terms and conditions of contracts of insurance;
 Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;
 Specifying the code of conduct for surveyors and loss assessors;
 Promoting efficiency in the conduct of insurance business;
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 Promoting and regulating professional organizations connected with the insurance and
re-insurance business;
 Levying fees and other charges for carrying out the purposes of this Act;
 Specifying the form and manner in which books of account shall be maintained and
statement of accounts shall be rendered by insurers and other insurance
intermediaries.
 Regulating investment of funds by insurance companies;
 Regulating maintenance of margin of solvency;
 Adjudication of disputes between insurers and intermediaries or insurance
intermediaries.
 Supervising the functioning of the Tariff Advisory Committee;
 Specifying the percentage of premium income of the insurer to finance schemes for
promoting and regulating professional organizations referred to in clause.
 Specifying the percentage of life insurance business and general insurance business to
be undertaken by the insurer in the rural or social sector

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INTRODUCTION TO ULIP:

The concept of ULIP came in to existence in 1960’s to provide an optimum balance
between protection and investment.
ULIP distinguishes itself through the multiple benefits it provides to the
policyholders. These plans are designed with a view to help the customers to utilize the
market opportunities by investing in the share market, capital market and at the same time
have the facility of Death Benefit and Maturity Benefit.
Unit-linked life insurance products are those where the benefits are expressed in terms
of number of units and unit price. They can be viewed as a combination of insurance and
mutual funds.
The number of units that a customer would get would depend on the unit price when
he pays his premium. The daily unit price is based on the market value of the underlying
assets (equities, bonds, government securities, et cetera) and computed from the net asset
value.
The advantage of unit-linked plans is that they are simple, clear, and easy to
understand. Being transparent the policyholder gets the entire upside on the performance of
his fund. Besides all the advantages they offer to the customers, unit-linked plans also lead to
an efficient utilization of capital.
Unit-linked products are exempted from tax and they provide life insurance. Investors
welcome these products as they provide capital appreciation even as the yields on
government securities have fallen below 6 per cent, which has made the insurers slash
payouts.
According to the IRDA, a company offering unit-linked plans must give the investor
an option to choose among debt, balanced and equity funds.

If you choose a debt plan, the majority of your premiums will get invested in debt securities
like gilts and bonds. If you choose equity, then a major portion of your premiums will be
invested in the equity market. The plan you choose would depend on your risk profile and
your investment need.

The ideal time to buy a unit-linked plan is when one can expect long-term growth

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ahead. This is especially so if one also believes that current market values (stock valuations)
are relatively low.

So if you are opting for a plan that invests primarily in equity, the buzzing market
could lead to windfall returns.

If one invests in a unit-linked pension plan early on, say when one is 25, one can
afford to take the risk associated with equities, at least in the plan's initial stages. However, as
one approaches retirement the quantum of returns should be subordinated to capital
preservation. At this stage, investing in a plan that has an equity tilt may not be a good idea.

Considering that unit-linked plans are relatively new launches, their short history does
not permit an assessment of how they will perform in different phases of the stock market.
Even if one views insurance as a long-term commitment, investments based on performance
over such a short time span may not be appropriate.

Simply put, ULIPs work very similar to a mutual fund with a life cover thrown in.
They have a mandate to invest the premiums in varying proportions in gsecs (government
securities), bonds, the money markets (call money) and equities. The primary difference
between conventional savings-based insurance plans like endowment and ULIPs is the
investment mandate- while ULIPs can invest upto 100% of the premium in equities, the
percentage is much lower (usually not more than 15%) in case of conventional insurance
plans. ULIPs are also available in multiple options like `aggressive' ULIPs (which can invest
upto 100% in equities), `balanced' ULIPs (which invest 40-60% in equities) and `debt' ULIPs
(which invest only in debt and money market instruments).
The exact expense structure/ break-up for ULIPs is as transparent as one would have
liked. Broadly speaking, ULIP expenses are classified into three major categories:

1) Mortality Charges:
Mortality expenses are charged by life insurance companies for providing a life cover to the
individual. The expenses vary with the age, sum assured and sum-at-risk for the individual.
There is a direct relation between the mortality expenses and the above mentioned factors. In
a ULIP, the sum-at-risk is an important reference point for the insurance company. Put

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simply, the sum-at-risk is the difference between the sum assured and the investment value
the individual's corpus as on a specified date.

2. Sales and administration expenses:
Insurance companies incur these expenses for operational purposes on a regular basis. The
expenses are recovered from the premiums that individuals pay towards their insurance
policies. Agent commissions, sales and marketing expenses and the overhead costs incurred
to run the insurance business on a day-to-day basis are examples of such expenses.

3. Fund management charges (FMC):
These charges are levied by the insurance company to meet the expenses incurred on
managing the ULIP investments. A portion of ULIP premiums are invested in equities,
bonds, gases and money market instruments. Managing these investments incurs a fund
management charge, similar to what mutual funds incur on their investments. FMCs differ
across investment options like aggressive, balanced and debt ULIPs; usually a higher equity
option translates into higher FMC.
Apart from the three expense categories mentioned above, individuals may also have
to incur certain expenses, which are primarily `optional' in nature- the expenses will be
incurred if certain choices that are made available to individuals are exercised.

a) Switching charges:
Individuals are allowed to switch their ULIP options. For example, an individual can switch
his fund money from 100% equities to a balanced portfolio, which has say, 60% equities and
40% debt. However, the company may charge him a fee for `switching'. While most life
insurance companies allow a certain number of free switches annually, a switch made over
and above this number is charged.
b) Top-up charges:
ULIPs allow individuals to invest a top-up amount. Top-up amount is paid in addition to the
premium amount for a particular year. Insurance companies deduct a certain percentage from
the top-up amount as charges. These charges are usually lower than the regular charges that
are deducted from the annual premium.
c) Cancellation charges:
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Life insurance companies levy cancellation charges if individuals decide to surrender their
policies (usually) before three years. These charges are levied as a percentage of the fund
value on a particular date.
Having defined ULIP expenses, an illustration will help in understanding how they pan out as
well as their impact on returns over a period of time.

NAV concept:
It exhibits the value (or the price) that one has for his investment or one will have to
pay for his investment.
As, the investment made by different people are different, the value (or the price) is
the expressed in per unit terms. It helps in knowing the value of Insurance at any point of
time.
Technical Calculation of NAV: -
UNIT Value = (Total market Value of all assets invested less expenses related to
Investment management / Total no.of outstanding units)
Factors affecting NAV:
Marketing Value of investment portfolio, Number of Units, Expenses and Investment
Income.
Ex: If 2,00,000 /- has been accumulated in the equity fund and the no. of units issued is

10,000 /- then the NAV of the equity fund is: -

2,00,000 / 10,000 = Rs 20 / -

As the equity market develop the fund grows from 2,00,000 / - to 220,000/-

Now the NAV = 2,20,000 / 10,000 = Rs 22 / -

If among these 10,000 units the policyholder has 5000 units ten the value of investment as of

now is Rs 1,10,000.

Thus a unit linked plan actually tells, what is the value of the fund.

BASIC FEATURES OF ULIP
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1. Life protection
2. Investment and savings
3. Flexibility
4. Transparency
5. Added Benefits
a) Death due to accident
b) Any kind of disability
c) Critical illness
d) Surgeries
6. Liquidity
7. Tax Planning
1) LIFE PROTECTION

Children
Start a
Establishi
Family
ng Career

Retiremen
t Time

Start
Working

The graph shows the various needs of the customer at different point of time,
individuals needs differ and his need for life protection fluctuates. ULIP satisfies the
varying needs of the customer providing him with more and more protection as and
when he requires, by allowing the policyholder to increase or decrease the death
benefit. It is usually multiple of the contribution being paid which ensure that the
contribution is adequate enough to provide life protection. And is also able to
maintain a same balance between protection and savings.

2) INVESTMENTS AND SAVINGS

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Equity
funds
Balance
d funds
Debt
Short funds
term
debt
funds

Risk
ULIP provides the client with option of investing as per his risk appetite and gets returns
accordingly. These various options available for an indivual to make investment in
comparatively high risks instruments and get high returns. Below shown is a graph
illustrating the various investment options for a client.
Example 1: Here are four types of funds in which a client can invest. In each case the risk
goes on increasing with the type of fund. The client has an option to shift as the risk and
return orientation changes (Switch).
3. FLEXIBILITY:
The client has an option to choose the amount of sum assured and the premium amount he is
capable of paying. In case of certain plans of ULIP the client is allowed to choose the
premium. Exp: Lifetime and Lifetime I The client has a flexibility to decide the life cover
according to his financial needs, independent of premium selected.
Following points enumerate the flexibility feature of ULIP
a) Increase in death benefit.
As life cycle changes of a client he passes through various risks and
responsibilities. He can increase or decrease the death benefit accordingly.
b) Decrease in death benefit.
If the client is unable to pay the same amount of premium he can decrease the
death benefit with certain conditions applying according to the particular
plans.
c) Premium holiday After paying the premium regularly for 3 years from the
starting date of the policy. The client can take a premium holiday if he is
unable to pay a particular premium due. On returning from the premium
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holiday the client can pay the previous premiums if he desires or continue

Plan Plan objective Risk Investment pattern
Maximiser High growth and capital High Equity and equity related
(Growth) appreciation over a long securities: Max 90%, Debt,
terms money market and cash : Min
10%
Balancer Balance of capital Average Equity and equity related
(balanced) appreciation and study securities: Max 40%, Debt,
returns over a long terms money market and cash : Min
60%
Preserver Equal balance of capital Low Debt instrument: Max 50%
appreciation and study Money market and cash Min
returns over a long term 50%
Protector Study returns over a long Moderate Debt instrument: Max 100%
(Income) term. Money market and cash Max
25%
from that date.
d) Choice of fund.
There are four kinds of funds available for a client of ULIP. He has a option to
switch between these four funds. He can either choose only one or invest in all
four depending on his risk tolerance.
Switch between the funds
The policyholder has a choice two reallocate the premium paid by him on
every premium policy anniversary. He can switch between the above four
funds to avail the advantages of market fluctuations.
Table: Kinds of funds available for a client of ULIP

e) Top ups:
Some times the client may have surplus amount after his expenses. ULIP
allows him to save that amount the investing in the insurance he can avail the
benefit of top up by paying extra premium, which will be invested in the share
market by the insurer company. The client gets expert fund management. The
policyholder is allowed to do as many top ups in the tenure of plan.
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f) Premium redirection
The policyholder is allowed to reallocate the premium paid each time to
different fund structure. Thus whenever the premium is due (As per the
premium payment mode), he can redirect the current premium into different
asset allocations than the previous time. This helps the policyholder to
optimize the funds in accordance to market with out using the switch option.

g) Assignment option:
The policyholder can assign the policy to any of the nominee or any bank in
case he has taken a loan on the title of the policy. Unfortunately if something
happens to the policyholder then the insurer will repay the loan taken by the
client to the extent of premium paid.
4. Transparency:
ULIP products are transparent in terms of, the policyholder is aware of where
his contribution is being allocated. The policyholder is aware of the various charges
charged to him.
The Various charges of the ULIP are: -
a) Contribution related Charges- Running expenses of the policy
b) Administrative Charges- Issuance cost, distribution costs etc
c) Fund Management Fee- cost of being and selling the various financial instruments
for various funds.
d) Mortality Charges: cost of providing life protection
e) Rider charges: cost of other protection charges.
f) Surrender charges: cost to cover initial expenses
g) Bid offer charges: difference between the offer price of units and the selling price
i.e. bid price of units. It covers the cost of selling the policy.
h) Transaction specific charges: cost of changing funds, toping up the investment
component or withdrawals
Daily NAV: A feature that lets you know on a daily bases, how the money in
insurance plan is growing.

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5. ADDED BENEFITS:
To get extra protection from the 3D effect ULIP provides the policyholder the
advantage of rider attachments.
a. Death due to accident (ADBR)
b. Disability (ABR)
c. Critical Illness (CIBR)
d. Surgeries (MSAR) (Now discontinued)

6. LIQUIDITY:
The feature makes ULIP a marketable plan. The policyholder has an option of
withdrawals in case if need arises. ULIP provides easy access to the money as and when the
policyholder may requires. There are two types of withdrawal options.
a) Partial
b) complete
The value of withdrawal reduces the death benefit by same amount. This facility can
be avail only after three full premium payment years are completed. The minimum worth of
this units and a maximum where in at least Rs. 10000/- worth units remain in all the funds
put together.
7. TAX PLANNING
This is another feature of ULIP. This is one of the motives of the policy holder to
invest in the insurance plans. They usually invest to avail the tax benefit. Regulation in
India allows tax benefits in the contribution paid under section 88, contribution paid for
health riders critical illness and major surgical is allowed tax benefits under section 80D, as
per the prevailing tax laws.
Maturity benefits are tax free under section 10(10)D, provided life come is at least 5
times of the annual contribution paid.
Death benefit is tax free under section 10(10)d.
Whit so many tax benefits available in one instrument ULIP tends to be an intelligent tax-
planning tool.

Modes of Premium Payment:
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Premiums are payable through any of the following modes:

Cash*

Cheques

Demand Drafts

Pay Orders

Bankers Cheque

Internet facility as approved by the Company from time to time.

Electronic Clearing System

Credit Cards (Only standing instruction)

*Amount and Modalities will be subject to company Rules and relevant
legislation/regulations

Premium Payment frequency:

Your Premium will fall due in every policy year based on the periodicity of payment of
premiums, i.e.

Yearly,

Half-Yearly or

Monthly

How much does the coverage cost?

The most comprehensive coverage is also affordable. Below are the annual premium rates for
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a Sum Assured of Rs. 500,000 for various policy terms and entry ages for Males.

Age(Years) Policy Term
15 years 20 years 25 years
25 Rs. 2435 Rs. 2474 Rs. 2734
30 Rs. 2896 Rs. 3204 Rs. 3738
35 Rs. 4106 Rs. 4724 Rs. 5576
40 Rs. 6282 Rs. 7281 Rs. 8442
45 Rs. 9804 Rs. 11,182 Rs. 12,554

Premium in Rupees

The premiums are guaranteed for first five years from the date of commencement of the
policy. Thereafter, the premiums are annually reviewable. Any change in premium will only
be effected with approval from IRDA.

Above premiums are inclusive of modal rebate and Large SA discount & exclusive of any
service tax and education cess.

Waiting Period: No benefit in respect of Critical Illness Benefit (CIB) or Total &
Permanent Disability Benefit (TPDB) will be payable if it has occurred due to sickness within
the first 6 months of the policy or first 3 months of the policy reinstatement date where the
policy has lapsed formore than 3months.

What is your Human Life Value?

Beyond all doubt, your life is invaluable. Yet, there is a certain worth that can be attributed to
the financial support you offer your parents, spouse or children. This worth is referred to as
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Human Life Value (HLV). In the future, if your family does not have the protective blanket
of your presence, they will no longer be able to enjoy the benefits of the income you earned.
Put simply, Human Life Value is the present value of your future earnings.

Why should you calculate your Human Life Value?

You should calculate your Human Life Value so you can accordingly invest in insurance
plans that provide your family with adequate finances and hence security even in your
absence.

How do you determine your Human Life Value?

Your Human Life Value is determined by 3 factors:
1. Your age
2. Current and future expenses
3. Current and future income

As a thumb rule, if you are 30 years of age, you should insure yourself for an amount
approximately 8 times your annual income. At 35, your investment should be close to 6 times
your income. Of course, the exact amount of your investment should be determined by the
number of people who depend on you, your existing investments and your life stage. For
example, if you are 30 years of age and have two children and parents to provide for, the
amount you invest should be reflective of your requirements.

Calculate your Human Life Value NOW

Use our quick and easy Human Life Value Calculator to determine your Human Life Value
and the corresponding amount you should invest. Start right away!

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WORKING OF A ULIP PLAN

For Example

A client put in regular contribution of Rs. 20,000 /-. From this amount a % is deducted as

contribution.

Therefore if the contribution related expense is 20% - Rs.4000/- will be deducted as

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contribution charges.

The amount that is now available is Rs.20000-4000=16000/-

Now, if the client who is available is aged 30 years were to take a life cover of 500,000/- then

mortality (1.50/- per thousand at the age of 30) charge of 750 /- will be deducted.

This amount will provide life cover to the policy. The remaining amount of – 15,250/- will be

invested in any one of them or all of them.

The Investment is shown in terms of units. Thus if client invests in debt fund and the NAV of

the debt fund is Rs. 16/-(market price) then the no. of units that the client will get is

15,250/16=953.125. For this investment-fund management fee will be charged and the

charges for maintaining the policy an administrative charge are levied.

He same example would look as follows in a chart.

FLOW CHART OF A UNIU LINKED PLAN

Less 20%

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20,000-4000=16000
Mortality & Rider Charges
Contribution Contribution related deucted
charges deducted

16,000-750=15,250 Life Protection
500,000
for the age 30- mortality at 1.50

per thousand

The client invests resultant Investment in
in funds as chosen Funds
Debt / Equity or
balanced
15,250/- invested in debt fund

at a NAV of 16/-

Units Allocated

953.1250units allocated

Represented as NAV

NAV of debt fund 16/- per unit

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TRADITIONAL PLANS:

These are the oldest types of plans available. These plans cater to customers with a low risk
appetite. Some of the common features of traditional plans are:

1. Steady Investment
1. Major chunk of investible funds are in debt instruments
2. Steady and almost assured returns over the long term
2. Features
1. Death benefit is Sum Assured + guaranteed & vested bonus
2. Helps in asset creation as they are for a long tenure
3. Premium to Sum Assured ratios are fixed for each plan and age.

Traditional plans have existed since the inception of Insurance. These plans have been
providing the policyholders, advantages of savings and protection.
But they lack, transparency, flexibility and liquidity etc that are available in either
Investment avenues. Ever since the Insurance sector was opened up, private players have
been trying to entice the customer with new and innovative policies.
Unlike traditional Insurance products, customers find unit linked plans more
transparent, flexible and easy to understand.
The key to good financial goals, risks appreciated and portfolio mix. The next step
would be allocate asset across different categories and systematically adhere to an investment
pattern, so that they work in tandem to meet one’s requirements over the next month, year or
decade. Because of their flexibility to adjust to different life stage needs ULIP’s have an
upper hand over the traditional plans.
Buying an ULIP is quite different from buying a traditional Life Insurance product.
The policyholder is totally aware of the various charges being charged to him and also about
was his contribution is being invested.
Ex: If 2,00,000 /- has been accumulated in the equity fund and the no. of units issued is
10,000 /- then the NAV of the equity fund is: -
2,00,000 / 10,000 = Rs 20 / -
As the equity market develop the fund grows from 2,00,000 / - to 220,000/-

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Now the NAV = 2,20,000 / 10,000 = Rs 22 / -
If among these 10,000 units the policyholder has 5000 units ten the value of investment as of
now is Rs 1,10,000.
Thus a unit linked plan actually tells, what is the value of the fund.

COMPARISON BETWEEN TRADITIONAL AND ULIP

Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A
brief detail of both segments:

Unit Linked Insurance Product: ULIPs have gained high acceptance due to
attractive features they offer. These include:

1. Flexibility
1. Flexibility to choose Sum Assured.
2. Flexibility to choose premium amount.
3. Option to change level of Premium /Sum Assured even after the plan has
started.
4. Flexibility to change asset allocation by switching between funds

2. Transparency:

1. Charges in the plan & net amount invested are known to the customer.

2. Convenience of tracking one’s investment performance on a daily basis.

3. Liquidity:
1. Option to withdraw money after few years (comfort required in case of
exigency).
2. Low minimum tenure.
3. Partial / Systematic withdrawal allowed.
4. Fund Options.
5. A choice of funds (ranging from equity, debt, cash or a combination).
6. Option to choose your fund mix based on desired asset allocation.

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COMPANY PROFILE

Evolution of ICICI Prudential Life Insurance:

ICICI Prudential Life Insurance today announced that Emgee Muthoot, the Insurance
division of the Muthoot group, one of Kerala's largest banking and financial services groups,
has crossed the Rs 10 crore premium mark in a span of less than three years. Emgee Muthoot,
which began distributing ICICI Prudential's life insurance products under the corporate
agency relationship, has also emerged as ICICI Pru's largest non-bank partnership in the state.

ICICI Prudential Life Insurance pioneered the multi-channel distribution strategy in the
country, and Kerala has emerged as one of its most successful examples of this model. The
company has tied up with leading banks in the state, like Federal Bank and The South Indian
Bank, as well as some other strong retail financial services distributors such as Emgee
Muthoot. Each of these are key partners in ICICI Prudential's alternate distribution strategy
and contribute greatly to the company's business as well as awareness levels and customer
experience.

Speaking at the event, Ms Shikha Sharma, CEO & MD, ICICI Prudential Life
Insurance said, ''It's been wonderful to see the evolution of Emgee Muthoot into a diversified
financial services company. Ever since they decided to become corporate agents and
distribute our life insurance products in February 2002, they have made huge strides in
training and developing their workforce to sell a complex product like life insurance, and
deliver value to their customers. I believe that it is thanks to these efforts that they are today
not only our leading corporate agent in Kerala, but the second largest in the country''.

Mr. George Alexander Muthoot, Managing Director, the Muthoot group, said ''A few
years ago, we took a strategic decision to leverage our extensive branch network and thereby
expand the scope of the services we offer our customers. Our partnership with ICICI
Prudential has been fantastic, and today life insurance has become a core business for us. I
believe that the success of this relationship has been founded on our shared values and
mission to deliver a superior experience to our customers''.

Emgee Muthoot is one of the most successful corporate agents for ICICI Prudential, and has
been one of the frontrunners in the company's Partner Program, an initiative to strengthen
relationships with key partners. The group's strategic move towards a branch model of
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distribution in mid-2003 served as a catalyst for the group's life insurance foray, and the
company has earned over Rs 5 crore in premium income since the beginning of this financial
year alone.

ICICI Prudential's early start and continued focus on alternate channels, which
include bank tie-ups, corporate agents and brokers, has resulted in these channels contributing
nearly 30% of ICICI Prudential's new business. Currently, ICICI Prudential has 7 bank
relationships and over 150 corporate agency and broker tie-ups.

Overview:
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank -
one of India's foremost financial services companies-and Prudential plc - a leading
international financial services group headquartered in the United Kingdom. Total capital
infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential
plc holding 26%.

We began our operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of 2099
branches (inclusive of 1,116 micro-offices), over 276,000 advisors; and 18 bancassurance
partners.

ICICI Prudential is the first life insurer in India to receive a National Insurer Financial
Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential
has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC
Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product
range and customer base, we continue to tirelessly uphold our commitment to deliver world-
class financial solutions to customers all over India.

Mumbai, September 3, 2007: ICICI Prudential Life Insurance, India's leading private
life insurance company, has simultaneously crossed 2 significant milestones, further
strengthening its position as a market leader. It has become the first private life insurer to
cross the 5 million policies mark, a milestone that has pushed the company's assets held past
the 20,000 crore milestone. Each of these achievements reflect the trust retail investors have
reposed in the company as well as the immense reach that the company has been able to build
over the past few years, particularly the last 18 months

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The ICICI Prudential Edge:

The ICICI Prudential edge comes from our commitment to our customers, in all that
we do - be it product development, distribution, the sales process or servicing. Here's a peek
into what makes us leaders.

1. Our products have been developed after a clear and thorough understanding of customers'
needs. It is this research that helps us develop Education plans that offer the ideal way to truly
guarantee your child's education, Retirement solutions that are a hedge against inflation and
yet promise a fixed income after you retire, or Health insurance that arms you with the funds
you might need to recover from a dreaded disease.

2. Having the right products is the first step, but it's equally important to ensure that our
customers can access them easily and quickly. To this end, ICICI Prudential has an advisor
base across the length and breadth of the country, and also partners with leading banks,
corporate agents and brokers to distribute our products .

3. Robust risk management and underwriting practices form the core of our business. With
clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth
and hassle-free claims process.

4. Entrusted with helping our customers meet their long-term goals, we adopt an investment
philosophy that aims to achieve risk adjusted returns over the long-term.

5. Last but definitely not the least, our team is given the opportunity to learn and grow, every
day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they
can deliver on our promise to cover you, at every step in life.

OUR VISION, MISSION QUALITY POLICY

”To be the dominant Life, Health and Pensions player built on trust by world-class people
and service”

This we hope to achieve by:

• Understanding the needs of customers and offering them superior products and
service

• Leveraging technology to service customers quickly, efficiently and conveniently

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• Developing and implementing superior risk management and investment strategies to
offer sustainable and stable returns to our policyholders

• Providing an enabling environment to foster growth and learning for our employees

• And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values
describe what the company stands for, the qualities of our people and the way we work.

We do believe that we are on the threshold of an exciting new opportunity, where we can
play a significant role in redefining and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.

Our values:
Every member of the ICICI Prudential team is committed to 5 core values: Integrity,
Customer First, Boundaryless, Ownership, and Passion. These values shine forth in all we do,
and have become the keystones of our success.

Promoters:
ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the
second largest bank in the country with consolidated total assets of about US$ 95 billion as of
March 31, 2009. ICICI Bank’s subsidiaries include India’s leading private sector insurance
companies and among its largest securities brokerage firms, mutual funds and private equity
firms. ICICI Bank’s presence currently spans 19 countries, including India.

Prudential:

Established in London in 1848, Prudential plc is a leading internal retail financial
services group with significant operations in Asia, the US and the UK. Prudential has been
writing protection and savings insurance for over 160 years, and today has more than 21
million customers worldwide and over 249 billion in assets under management (as of
December 31, 2008). In Asia, Prudential is the leading Europe-based life insurer with
operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset management
companies in terms of overall assets sourced in Asia ex-japan, with ?36.8 billion funds under

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management (as of December 31, 2008) and operations in ten markets including China, Hong
Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab
Emirates.

The Company

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier
financial powerhouse, and Prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).

ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of March, 2009) with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. For the period April 1,
2008 to March 31, 2009, the company has posted a growth of 13%, garnering total received
premium (new business + renewal) of Rs 15,356 crores as against Rs 13,563 crores in
FY2008 and has underwritten over 9 million policies since inception. The company has assets
held over Rs. 32,000 crores as on March, 2009.

ICICI Prudential Life is also the only private life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the
highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to
customers at the time of maturity or claims.

For the past eight years, ICICI Prudential Life has retained its leadership position in the life
insurance industry with a wide range of flexible products that meet the needs of the Indian
customer at every step in life.

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STAGES IN POLICY ISSUANCE:

• Proposal
A Proposal Stage is the First stage before the policy is issued at COPS. At this stage, the
application form is received by COPS, but it is pending for issuance due to further
clarifications required from the customer.

• Login
A proposal, which is complete i.e., duly filled with all necessary documents
attached to it & accepted by the Branch ops, is called a Login
• Reject
An Application gets rejected at the Branch Ops level due to necessary details not filled in
the form or necessary documents not submitted are a Reject. It is then sent back to the
Advisor for completion.
• Issuance
Issuance means a policy that is issued to the Customer by Central Ops.

• Decline Status
When a customer refuses to take a policy post login but before Issuance is called a
Decline
• Cancellation
When the cheque given by the customer bounces, it amounts to cancellation of the policy.

• Lapse
A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.
• Free look
Post issuance of the policy, the policyholder has the option to turn down the policy within
15 days from the date of issuance. This period of 15 days is called Free look Period.

• Surrender When a customer wants to discontinue with the policy it is called
Surrender.

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Distribution Channels:
Tied Agency Channel
The Tied Agency Channel, as the name suggests, is driven by agents (advisors) of the
company. For insurance distribution, this is the most popular channel. This channel sourced
73% of ICICI Prudential’s business in FY 2004.
Bank assurance:
Bank assurance is a setup whereby a tie up is made with a Bank. This distribution model
works on referral basis. The customer base of the bank that is made available to it benefits the
Insurance Company. The bank, in return earns referral commission for every policy issued to
the bank customer. In this arrangement, typically an employee of the ICICI Prudential is
stationed at the bank branch and he sources the business through walk-ins that happen at the
bank. His domain of prospective customers is a banks’ customer. Such agents put up at
banks are called as Financial Service Consultant (FSC). Banc assurance, as an arrangement
for distribution, has been proved successful because of the extended reach that the insurance
company gets through the bank branch network.
Corporate Agents:
Corporate Agents (CAs) are corporate entities that source policies for the Insurance
Company with whom they have a tie-up. They are authorized to source policies for one
insurance company only. The difference between CA & Banc assurance arrangement is that
the former trains its own employees to sell the policies while in case of Banc assurance
arrangement, the employees of the insurance company (FSCs) source the business.
Brokers:
A variant of CAs, Brokers are not tied to a particular company and are allowed to source
business for more than one insurance company.
Direct Marketing:
Direct marketing, as a channel of distribution, is relatively a new one. It basically
encompasses all unconventional channels of distribution. Inter alia, it includes call center,
Internet and other mass media channels. All leads that come through this channel are then
attended and closed by our branches.
Advisor: An Advisor is the agent of the Company who sources or sells the policy for the
company. They are called as FOS - Feet on Street.
INSURANCE PRODUCT AND SERVICE:
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ICICI Prudential’s ultimate promise is financial security. A strong brand certainly
boosts sale, but without customer-friendly, innovative products, even the best brand would
not last long. ICICI Prudential’s product range has been developed on the understanding that
different people have their own sets of needs at various stages of their lives. It has thus built a
flexible portfolio of products that can be customized to cater to varying needs of people at
each stage, and thus ensure protection in every step of life. The company’s philosophy has
been to help customers understand their financial needs and work closely with them to
customize a product that would meet. Advisors can offer a complete range of products –
Savings plans, Child plans, Market-linked plans, Protection plans, and Retirement plans – and
tailor a flexible solution to meet customers’ changing needs at every stage of life. In fact,
ICICI Prudential was the first to un-bundle product benefits, pioneering the concept of
‘riders’ and soon after introduce comprehensive market-linked and retirement plans. ICICI
Prudential has launched a handful of products that are analyzed below: ICICI Prudential's life
insurance products may be loosely categorized under three forms: pure life insurance
products without an investment angle to them; a product that is a mix of a cumulative
investment scheme and an insurance product; and, finally, standard products such as money-
back and endowment policies.

PRODUCTS:
Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that
meet the needs of customers at every life stage. Its products can be enhanced with up to 4
riders, to create a customized solution for each policyholder.

 Life Time Gold is a unit-linked plan which offers potentially higher returns over the long
term with flexible investment options to help you achieve your goals. It offers 8 fund
options - Preserver, Protector, Return Guarantee Fund, Balancer, Flexi Balanced
Multiplier, R.I.C.H and Flexi Growth.

 Life Stage RP is unit linked plan that provides you with an option of lifecycle-based
portfolio strategy that continuously re-distributes your money across various asset classes
based on the customer’s profile, helping him achieve his desired financial goals.

 LifeLink Super is a single premium unit linked insurance which offers attractive
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premium allocation along with the opportunity to enjoy potentially high returns over the
long term, without compromising on the protection of your family.

 InvestShield Life New is a unit linked plan that provides premium guarantee and allows
the customer to enjoy the benfits of potentially higher returns while guaranteeing him that
he will get back atleast all the premiums paid by him, while providing protection to your
family with a life insurance cover.

 InvestShield Life New is a unit linked plan that provides premium guarantee and allows
the customer to enjoy the benfits of potentially higher returns while guaranteeing him that
he will get back atleast all the premiums paid by him, while providing protection to your
family with a life insurance cover.

 InvestShield Cashbak is a unit linked plan that provides premium guarantee while
maintaing a balance between return, safety & liquidity.

 Wealth Advantage s a unique whole life single premium unit linked plan that provides
long term coverage upto the age of 70 years and provides you the option to systematically
withdraw your money.

 Life Stage Assure a unit linked insurance plan that provides Guaranteed Maturity
Addition of 100%- 450% of first year premium based on the term and number of
premiums paid, with the additional advantage of a lifecycle based portfolio strategy that
allocates the investor’s money across various asset classes based on his age and risk
appetite

Protection Solutions

 Pure Protect is a flexible and affordable term product, with which you can ensure
your life and provide total security for your family in case of an unfortunate event.

 Life Guard is a protection plan, which offers life cover at low cost. It is available in 2
options –level term assurance with return of premium & single premium.

 Home Assure is a mortgage reducing term assurance plan designed specifically to
help customers cover their home loans in a simple and cost-effective mannerChild
Plans:

Smart Kid New ULRP: The policy is designed to provide money at key educational
milestones in the child's life. SmartKid plans are also
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Retirement Solutions:

 Forever Life is a traditional retirement product that offers guaranteed returns for
the first 4 years.

 Life Time Super Pension is a regular premium unit linked pension plan that
helps one accumulate over the long term and offers 5 annuity options (life annuity,
life annuity with return of purchase price, joint life last survivor annuity with
return of purchase price, life annuity guaranteed for 5,10 and 15 years & for life
thereafter, joint life, last survivor annuity without return of purchase price) at the
time of retirement.

 Life Stage Pension is a regular premium unit linked pension plan that provides
you with a unique lifecycle-based strategy that continuously re-distributes your
money across various asset classes based on your age and risk profile.

 Life Link Super Pension is a single premium unit linked pension plan.

 Immediate Annuity is a single premium annuity product that guarantees income
for life at the time of retirement. It offers the benefit of 5 payout options.

Health Solutions:

 Hospital Care is a fixed benefit plan covering various stages of treatment –
hospitalization, ICU, procedures & recuperating allowance. It covers a range of
medical conditions (900 surgeries) and has a long term guaranteed coverage upto
20 years.

 Crisis Cover is a 360-degree product that will provide long-term coverage against
35 critical illnesses, total and permanent disability, and death.

 Diabetes Care Active is a long term insurance policy created for individuals with
Type II diabetes and pre-diabetes. It offers long term (upto 20 years) control over
diabetes through a specially designed Wellness Programme including regular
health checkups and a Diabetes Coach to facilitate diabetes management. It also
provides you coverage against seven major critical illnesses.

 Cancer Care is a regular premium plan that pays cash benefit on the diagnosis as
well as at different stages in the treatment of various cancer conditions.

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 Medical Assure is a health insurance policy that provides assured insurability till
age 75 years, assured coverage for accepted pre-existing illnesses after 2 years and
an assured price for 3 years.

 Health Saver provides comprehensive hospitalization cover and reimburses all
other medical expenses by building a health fund.

 available in traditional form

Flexible Rider Options:

ICICI Prudential Life offers flexible riders, which can be added to the Basic policy at
a marginal cost, depending on the specific needs of The customer.

Accident & disability benefit:

If death occurs as the result of an accident during the term of the policy, the
beneficiary receives an additional amount equal to the rider sum assured under the policy. If
an accident results in total and permanent disability, 10% of rider sum assured will be paid
each year, from the end of the 1st year after the disability date for the remainder of the base
policy term or 10 years, whichever is lesser. If the death occurs while travelling in an
authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as
additional benefit.

Critical illness benefit:

Critical Illness Benefit Rider provides protection against 9 critical illnesses to the
policyholder when attached to the basic plan.

Waiver of premium:

On total and permanent disablement due to accident all future premiums under the base
plan will be waived till the end of the term of the rider or death of assured life, if earlier.

Income benefit rider:

In case of death of the Life Assured during the term of the policy, 10% of the Sum
Assured is paid annually to the nominee on each policy anniversary till the maturity of the
rider.

Table Ownership Pattern
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Nature of relationship Name of the related party
Holding Company ICICI Bank Limited
Substantial Interest Prudential Corporation Holdings Limited
Fellow Subsidiaries ICICI Brokerage Services Limited
ICICI Venture Funds Management Company Limited
ICICI Home Finance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Trusteeship Services Limited
ICICI Securities Limited
ICICI Securities Inc.
ICICI Securities Holding Inc.
ICICI Investment Management Company Limited
ICICI International Limited
ICICI Bank UK Limited
ICICI Bank Canada
ICICI Bank Eurasia L.L.C. (formerly Investment Credit
Bank Limited Liability Company)
Prudential ICICI Asset Management Company Limited
Prudential ICICI Trust Limited
ICICI Property Trust
Key management Shikha Sharma, Managing Director N. S. Kannan, Executive
personnel Director (appointed on August 1, 2005)
ICICI Prudential Life Insurance Company Limited
Employees’ Group Gratuity Cum Life Insurance Scheme
Significant influence ICICI Prudential Life Insurance Company Limited
Employees’ Provident Fund ICICI Prudential Life Insurance
Company Limited Superannuation Scheme

Competitors:
LIFE INSURERS Websites
Public Sector
Life Insurance Corporation of India www.licindia.com
Private Sector
Allianz Bajaj Life Insurance Companywww.allianzbajaj.co.in
Limited
Birla Sun-Life Insurance Company Limited www.birlasunlife.com
HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com
ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com
ING Vysya Life Insurance Companywww.ingvysayalife.com
Limited
Max New York Life Insurance Co. Limited www.maxnewyorklife.com
MetLife Insurance Company Limited www.metlife.com
Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com
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SBI Life Insurance Company Limited www.sbilife.co.in
TATA AIG Life Insurance Companywww.tata-aig.com
Limited
Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com

GENERAL INSURERS
Public Sector
National Insurance Company Limited www.nationalinsuranceindia.com
New India Assurance Company Limited www.niacl.com
Oriental Insurance Company Limited www.orientalinsurance.nic.in
United India Insurance Company Limited www.uiic.co.in
Private Sector
Bajaj Allianz General Insurance Co. Limitedwww.bajajallianz.co.in
ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com
Reliance General Insurance Co. Limited www.ril.com
Royal Sundaram Alliance Insurance Co.www.royalsun.com
Ltd.
TATA AIG General Insurance Co. Limited www.tata-aig.com
Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com
Export Credit Guarantee Corporation www.ecgcindia.com
HDFC Chubb General Insurance Co. Ltd.
REINSURER
General Insurance Corporation of India www.gicindia.com

Market share:

ICICI Prudential Life Insurance hiked its market share to 42.72 per cent in the
October-November period last year, up from 37.92 per cent in first quarter and 38.85 per cent
in the second quarter of the current fiscal.

Its total share of the Rs 439.2-crore premium collected by private players during the April-
November period stood at 39.66 per cent. Its aggregate estimated premium income amounted
to Rs 174.2 crore as at the end of November. According to ICICI officials, while the premium
mop-up by private companies in April-June 2002 was about Rs 117 crore, the corresponding
figures for the July-September and October-November periods were Rs 201.3 crore and Rs
120.8 crore. Out of this, ICICI’s premium income stood at Rs 44.4 crore, Rs 78.2 crore and

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Rs 51.6 crore, respectively.

They cited Irda statistics saying the total premium income of the life sector was Rs 1,191
crore in April-June, 2002, and Rs 3,512.8 crore uptil September.

ORGANIZATION STRUCTURE

BRANCH
OFFICE

SALES OPERATION

REGIONAL
SALES MGR SALES MGR SALES MGR HEAD
OPERATOR

ASM
ASM ASM
ZONAL MGR

AGENCYMGR
AGENCYMGR AGENCYMGR

STATE
MGR
UNIT MGR UNIT MGR UNIT MGR
42 42
BRANCH
BABASAB PATIL MGR
FINANCIAL FINANCIAL FINANCIAL
ADVISORS ADVISORS ADVISORS

TEAM LEADER
EXECUTIVE


BOARD OF DIRECTORS

Ms. Chanda .D. Kochhar : Chairperson
Mr. N. S. Kannan : Director
Mr. K. Ramkumar : Director
Mr. Barry Stowe : Director
Mr. Adrian O’Connor : Director
Mr. Keki Dadiseth : Director
Prof. Marti G. Subrahmanyam : Director
Ms. Rama Bijapurkar : Director
Mr. Vinod Kumar Dhall : Director
Mr. V. Vaidyanathan : Managing Director & CEO

Management team
Mr.V.Vaidyanathan, : Managing Director & CEO
Ms. Anita Pai, : Executive Vice Presiden Customer Service,
Technology & Marketing

43 43

BABASAB PATIL


Dr. Avijit Chatterjee, : Appointed Actuary
Mr. Puneet Nanda, : Executive Vice President

Awards and Achievements

44 44

BABASAB PATIL


e
w
In
su
re
r:
O
ut
lo
o
k
M
o
ne
y
A
w
ar
ds
2
0
0
3

45 45

BABASAB PATIL


Data source:
Primary Data: Personal interactions, Observations
Training programs. Through Questionnaire
Secondary Data: Study material by IRDA and ICICI Prudential.
Related websites,
Past records of ICICI Prudential.&
Brochures and pamphlets of ICICI Prudential

Sampling:
a) Population : People Hubli city

b) Size : 100 size

c) Method : Random sampling

MEASURING TOOLS:

SPSS Software used for measuring the response is in terms of percentage method using
graphical charts like Bar graphs & Pie charts.

ANALYSIS:

46 46

BABASAB PATIL


1. Gendor:

Frequency Percent Valid Cumulative
Percent Percent
Valid Male 73 73.0 73.0 73.0
Female 27 27.0 27.0 100.0
Total 100 100.0 100.0

gendor
80

60

40

20
Frequency

0
male female

gendor

Interpretation:

According to survey we have come to now the out of 100 responds in that
73% are male and 27% female. Therefore male are more than female in Hubli city.

2. Occupation

Frequency Percent Valid Cumulativ
Percent e Percent

47 47

BABASAB PATIL


Validgovernment 9 9.0 9.0 9.0
employee
private 36 36.0 36.0 45.0
employee
student 1 1.0 1.0 46.0

business 29 29.0 29.0 75.0
man
Others 25 25.0 25.0 100.0

Total 100 100.0 100.0

occupation
40

30

20

10
Frequency

0
goverement employee student others
private employee bussiness man

occupation

Interpretation:
According survey i came know that at 9% are government,36% are private people,
1% Are student, 29% are businessman, 25% are other.

3. Why did you go for ICICI prudential life insurance?

FrequencyPercen Valid Cumulati
t Percen ve
t Percent

48 48

BABASAB PATIL


Validbrand name 39 39.0 39.0 39.0

product 18 18.0 18.0 57.0
profile
advisors 36 36.0 36.0 93.0
connivance
ability
advertisement 7 7.0 7.0 100.0
Total 100 100.0 100.0

why did you go for icici pru life insurance
50

40

30

20
Frequency

10

0
brand name advisors convinacy a
product profile advertsement

why did you go for icici pru life insurance

Interpretation:
From above table clear that brand name 39%, product profile 18%, advisors
convince ability 36%, advertisement 7% .

4. Your savings consist of
Frequency Percent Valid Percent Cumulative
Percent
Valid post office 17 17.0 17.0 17.0
bank f,d 10 10.0 10.0 27.0
Shares 6 6.0 6.0 33.0
land/ building 6 6.0 6.0 39.0

49 49

BABASAB PATIL


Life 55 55.0 55.0 94.0
insurance
Gold 3 3.0 3.0 97.0
not respond 3 3.0 3.0 100.0

Total 100 100.0 100.0

your savings consist of

not respond

gold
post office

bank f,d

shares

life insurance
land/ building

Interpretation:
According to survey we have come to know that 17% of responds are saving
There income in post office, 10% responds are saving in bank f.d, 6% responds are
Saving there income in shares, 6% responds are saving there income in land/building, out of
100 responds are 55% peoples are saving there income in life insurance because to protect
there life in future.3% people are save there income in gold and 3% are not responds there
income
5. The following insurance plan you have
Percent Percent
Valid smart kid 16 16.0 16.0 16.0
life time 16 16.0 16.0 32.0
gold
cash back 9 9.0 9.0 41.0
retirement 10 10.0 10.0 51.0
solution
if other 31 31.0 31.0 82.0
specify
50 50

BABASAB PATIL


not respond 18 18.0 18.0 100.0
Total 100 100.0 100.0

the following insurance plan you have
40

30

20

10
Frequency

0
smart kid cash back if other specify
life time gold retirement solution not respond

the following insurance plan you have

Interpretation:
According to survey we have come to know out of 100 responds they have choice
insurance plan in ICICI prudential 16% of people in smart kid, 16% of responds life time
gold, cash back is only 9%, 10% responds retirement solution31% and 18% are others and
not responds.

6. How much of premium amount o policy you have
Percent Percent
Valid 5000-10000 63 63.0 63.0 63.0
10000-2000 13 13.0 13.0 76.0
0
20000-5000 2 2.0 2.0 78.0
0
50000&abo 1 1.0 1.0 79.0
ve
not respond 21 21.0 21.0 100.0
Total 100 100.0 100.0

51 51

BABASAB PATIL


Interpretation:
According to survey we have come to know that 63% of responds
There premium amount 5000-10000, and 13% responds are prefer to10000-20000
Only 2% responds are premium 20000-50000, 1% and 21% 50000 above and not responds

7. Did you know about the life insurance?
Percent Percent
Valid magazines/n 1 1.0 1.0 1.0
ews papers
television 5 5.0 5.0 6.0
advisors 55 55.0 55.0 61.0
Friends 20 20.0 20.0 81.0

relatives 6 6.0 6.0 87.0
not respond 13 13.0 13.0 100.0
Total 100 100.0 100.0

52 52

BABASAB PATIL


did you know about the life insurance?

magaznes/new s papers
television
not respond

relatives

friends

advisors

Interpretation:
According to survey we have come to know out of 100 responds are know
about the life insurance from different sources 1% responds magazines/news papers 5%
respondent are 5% respondent are television more of respondent are come to know from
advisors,20% respondent are friends,6% are relatives and 13%are not respond.

8. Are aware of ulip and traditional plan?

Percent Percent
Valid Yes 61 61.0 61.0 61.0

No 32 32.0 32.0 93.0
not respond 7 7.0 7.0 100.0
Total 100 100.0 100.0

53 53

BABASAB PATIL


are aware of ulip and traditional plan?
70

60

50

40

30

20
Frequency

10

0
yes no not respond

are aware of ulip and traditional plan?

Interpretation:
According to survey we have come to know that most of people are ulip
Which is 61%and 32% are traditional plan and reaming are not respondent.

9. In which companies have you invested

Percent Percent
Valid LIC 19 19.0 19.0 19.0

ICICI pru life 44 44.0 44.0 63.0
insurance
Bajaj Allianz 14 14.0 14.0 77.0

not respond 23 23.0 23.0 100.0

54 54

BABASAB PATIL


Total 100 100.0 100.0

in which company have you invested
50

40

30

20
Frequency

10

0
lic icici pru life insur bajaj allianz not respond

in which company have you invested

Interpretation:
According to survey we have come to know that 19% respondent are invested in LIC
life insurance 44% are peoples are ICICI prudential insurance,14% are Invested are in Bajaj
Allianz life insurance and remaining 23% are not respondent.

10. For what purpose you invested in that company?

Percent Percent
Valid tax saving 14 14.0 14.0 14.0
risk cover 42 42.0 42.0 56.0
Returns 21 21.0 21.0 77.0
Safety 6 6.0 6.0 83.0
Others 1 1.0 1.0 84.0
not respond 16 16.0 16.0 100.0
Total 100 100.0 100.0

55 55

BABASAB PATIL

Comparison between traditional plan & ulip’s

Comparison between traditional plan & ulip’s

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