A

PROJECT REPORT
ON
COMPARATIVE ANALYSIS OF ICICI
PRUDENTIAL AND OTHER
INSURANCE COMPANIES

ABSTRACT
MBA is a stepping-stone to the Management carrier and to develop good Managers is
necessary that the theoretical must be supplement with exposure to the real environment.
Theoretical knowledge just provides the base and its not sufficient to produce a good
Manager thats why the practical knowledge is needed.
Therefore the Research Project is an essential requirement for the student of MBA. This
research project not only helps the students to utilize his skills properly and learn field
realities but also provides a chance to the organization to find out talent among the building
Managers in the very beginning.
In accordance with the requirement of MBA course I have done my research project on the
topic COMPARATIVE ANALYSIS OF ICICI PRUDENTIAL AND OTHER
INSURANCE COMPANIES with special reference to ICICI Prudential.

INDEX
EXECUTIVE SUMMARY

CHAPTER-1
1.1. Introduction - basics of insurance
1.2. Need of life of insurance
1.3. Roles of insurance
1.4. Types of life insurance

CHAPTER-2
2.1. Industry Profile
2.2. Company Profile

CHAPTER-3
3.1. Literature Review
3.2 Research Methodology

CHAPTER-4
4.1. Analysis Study

CHAPTER-5
5.1. Data Analysis & Interpretations

Chapter-6
6.1. Limitations
6.2. Findings & Recommendations
CONCLUSION
BIBLIOGRAPHY

Page No.

EXECUTIVE SUMMARY
Title of the project:
Market analysis of ICICI prudential and other insurance companies

Objectives:
Working of the unit linked insurance plans
SWOT analysis of the product
Comparative study of the competition
Study tax planning solutions available in the market
Study asset allocation through insurance plans
Market interface

Comparative analysis done on:

Life insurance corporation
HDFC Stan Life
Birla Sun Life
Bajaj Allianz
Research Methodology:
Primary data collected by personally visiting these leading insurance players. Eg: LIC, Max
New York Life Insurance, Bajaj Alliance, Birla Sunlife, HDFC Stan life.

Data Collection:
PRIMARY DATA
Primary data collected through direct interaction with customer.
Sample size 100 people.
SECONDARY DATA
Secondary database from different magazines.
First and foremost, accumulating information from newspapers ,
Journals, Magazines, and company webside.
Secondly, taking a sample size and doing a market survey by filling up questionnaires
from customers to find out what different companies are offering in the ULIP section
and how are they similar/different from ICICI PRUDENTIAL products. Also keeping
a track and taking down the feedback regarding perception, attitude, taste and
preferences of the customer.
Thirdly, analyzing the data collected. Comparing the ULIP products offered by other
insurance players.
Critical analysis of consumer perception; their choice and preferences.
Eventually, deciding on how to familiarize ULIP products in the market and what all
safeguards need to be taken while approaching the customers.

CHAPTER-1

1.1. INTRODUCTION TO INSURANCE

LIFE

INSURANCE

GENERAL

Insurance is a system to alleviate financial losses by transferring risk of loss from one
entity to another.

Insurance is basically a sharing device. The losses to assets resulting from natural calamities
like fire, flood, earthquake, accidents, etc. are met out of the common pool contributed by
large number of persons who are exposed to similar risks. This contribution of many is used
to pay the losses suffered by unfortunate few. However the basic principle is that loss should
occur as a result of natural calamities or unexpected events which are beyond the human
control. Secondly insured person should not make any gains out of insurance.
It is natural to think of insurance of physical assets such as motor car insurance or fire
insurance but often we forget that creator of all these assets is the human being whose efforts
have gone a long way in building up the assets. In that sense, human life is a unique income
generating assets. Unlike the physical assets, which decrease in value with passage of time,
the individual becomes more experienced and more matured as he advances in age. This
raises his earning capacity and the purpose of life insurance is to protect the income in the
event of his premature death. The individual himself also needs financial security for the old
age or on his becoming permanently disabled when his income will stop. Insurance also has
an element of savings in certain cases.

How insurance works?

Suppose there are 1000 persons all aged 35 years and healthy lives. They are insured for one
year against the risk of death. Each person is insured for Rs. 50,000. If the past experience
indicated that 4 out of 1000 persons, at this age are expected to die during the year, expected
amount of death claim to be paid to the family of four persons would come to Rs. 2,00,000.
The contribution to be paid by each of the 1000 persons will come to Rs. 200 per year. Thus,
all the 1000 persons share loss caused to the 4 unfortunate families. 996 persons who
survived till one year have not lost anything as they secured peace of mind and a feeling of
security of their family. While insurance cannot prevent accidents or premature death, it can
help protect the family of the decreased against the loss of income caused by the death of the
main breadwinner. In return for specified payments, insurance will provide protection against
the incidence of an uncertain event- such as premature death. The business of insurance
company called insurer is to bring together persons who are exposed to similar risks, collect
contribution (premium) from them on some equitable basis and pay the losses (claims) to the
unfortunate few who suffer.
Classification of Insurance
Insurance business can be divided into two broad categories, life and non-life. Life insurance
is concerned with making provision for a specific event happing to the individual, such as
death whereas non life (or general insurance) is more commonly concerned with the
provision for a specific event which affects a property, such as fire, flood, theft etc. In this
course we will only cover life insurance. So, let us now move on to the definition of life
insurance.
Definition of Life Insurance
According to the U.S. Life Office Management Association Inc. (LOMA), life insurance is
defined as follows: Life insurance provides a sum of money if the person who is insured dies
whilst the policy is in effect.

1.2. NEED FOR LIFE INSURANCE

Risks and uncertainties are part of life's great adventure -- accident, illness, theft, natural
disaster - they're all built into the workings of the Universe, waiting to happen.
Insurance then is man's answer to the vagaries of life. If you cannot beat man-made and
natural calamities, well, at least be prepared for them and their aftermath.
Insurance is a contract between two parties - the insurer (the insurance company) and the
insured (the person or entity seeking the cover) - wherein the insurer agrees to pay the insured
for financial losses arising out of any unforeseen events in return for a regular payment of
"premium".
These unforeseen events are defined as "risk" and that is why insurance is called a risk cover.
Hence, insurance is essentially the means to financially compensate for losses that life throws
at people - corporate and otherwise.
The principle of insurance works on the concept of a large number of people exposed to a
similar risk making a contribution to a common fund. Those who suffer losses due to the
occurrence of these events are compensated for them from this fund.

1.3. ROLE OF LIFE INSURANCE

Life Insurance As An Investment: Insurance is an attractive option for investment. While most people recognize the risk
hedging and tax saving potential of insurance, many are not aware of its advantages as an
investment option as well. Insurance products yield more compared to regular investment
options, and this is besides the added incentives offered by insurers.
You cannot compare an insurance product with other investment schemes for the simple
reason that it offers financial protection from risks, something that is missing in noninsurance products. In fact, the premium you pay for an insurance policy is an investment
against risk. Thus, before comparing with other schemes, you must accept that a part of the
total amount invested in life insurance goes towards providing for the risk cover, while the
rest is used for savings.
In life insurance, unlike non-life products, you get maturity benefits on survival at the end of
the term. In other words, if you take a life insurance policy for 20 years and survive the term,
the amount invested as premium in the policy will come back to you with added returns. In
the unfortunate event of death within the tenure of the policy, the family of the deceased will
receive the sum assured.
Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF, your
money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the access to
your funds will be limited. One can withdraw 50 per cent of the initial deposit only after 4
years.
The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 512 lakh (depending upon the plan, age and medical condition of the life insured, etc) and this
amount can become immediately available to the nominee of the policyholder on death. Thus
insurance is a unique investment avenue that delivers sound returns in addition to protection.

1.4. TYPES OF LIFE INSURANCE PLANS

Life Insurance Plans:

Under Life insurance plans, ICICI Prudential offers plans under the following major need
categories:
Education Insurance Plans
Wealth Creation Plans
Premium Guarantee plans
Protection Plans

Education Insurance Plans

One of your most important responsibilities as a parent is to ensure that your child gets the
best possible education that can be provided.
ICICI Prudential offers a wide portfolio of education insurance plans that are designed to
provide peace of mind to you, as a parent, that your child's education will be secure. These
plans ensure that money is made available at the crucial junctures in a child's education Class X, Class XII, graduation and post-graduation - to fund crucial commitments for the
child's future.
Importantly, education insurance plans ensure that in the unfortunate event of the death of a
parent, the child's education continues unhampered.
Under the education insurance plans platform, ICICI Prudential brings the following products
to you. Please click on the product name to know more about the plans.

Plan Name

Plan Type

SmartKid New Unit-linked

Regular Premium

Unit Linked

SmartKid New Unit-linked

Single Premium

Unit Linked

SmartKid Regular Premium

Traditional

Wealth Creation Plans

Wealth Creation Plans give the customer the dual benefit of protection along with the
potentially higher returns of market-linked instruments. The most important benefit of ULIPs
is the flexibility they give the customer in choosing the premium amount and also choosing
the underlying fund in which this money is to be invested. Wealth creation plans also offer the
customer more liquidity options as compared to traditional plans. As such, ULIPs are ideal
for customers who want the protection of a life cover to be allied to the returns of market
linked instrument giving them an unmatched combination of benefits.
Under the wealth creation platform, ICICI Prudential brings the following products to you.
Please click on the product name to know more about the plans.

Plan Name

Plan Type

LifeTime Super
LifeLink Super
PremierLife Gold
LifeTime Plus

Unit Linked
Unit Linked
Unit Linked
Unit Linked

Premium Guarantee Plans

The latest addition to the life insurance product portfolio of ICICI Prudential is the Premium
Guarantee plan - InvestShield Life New. Premium Guarantee plans are the ideal insurancecum-investment option for customers who want to enjoy the potentially higher returns of a
market linked instrument, but without taking any market risk.
Under the Premium Guarantee Plans platform, ICICI Prudential brings to you the following
products:

Plan Name

Plan Type

InvestShield Life New

InvestShield CashBak

Unit Linked
Unit Linked

Protection Plans
The sole objective of these plans, as their name indicates, is to serve the protection needs of
the customer and by doing so, safeguard ones family from the financial implications of
unfortunate circumstances than one cannot foresee.
Under the Protection Plans platform, ICICI Prudential brings to you the following products:

Plan Name

Plan Type

LifeGuard
Save'n'Protect
CashBak
Home Assure

Traditional
Traditional
Traditional
Traditional

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

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 decision taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the launch of the IRDAs 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 12 life insurance and 6 general insurance companies have
been registered.

WHY PRIVATE INSURANCE?

All the private companies have a lock in period of 3 yrs hence no disinvestments possible.

Minimum net worth of 500 Cr required for acquiring license with a minimum paid up
capital of 100 Cr in their insurance venture.

Commitment to increase the paid up capital manifold in next five years.

Re insurance for all its policies worth more than 5 lakhs. Reinsurance partners, best and
the largest in the world general cologne and Swiss reinsurance.

Audit of accounts by at least 2 independent approved auditors each year.

Products and pricing are cleared by IRDA, which looks into the financial visibility of the
product and the financial implication.

IRDA is now proposing a Pvt. Policy Protection fund.

Funds to be invested in only regulated and controlled areas with close to 80%being
pumped into only gilts thereby assuring safety of funds.

CHAPTER-2

2.1.LITERATURE REVIEW
How a company does announced a name change especially when the old name was well
known? How does the company explain itself to constituents who may have known the
company quite well in an earlier incarnation but may be struggling to figure out what the new
organization stands for? How can the company create a new image while retaining the
strengths of the old one? And what role might corporate advertising play in all this?
Corporate advertising can tell a story about a company as a whole, large organizations may
need to use corporate ads to simplify their image in the minds of key constituents and to show
what unifies the company, despite the geographical spread and variety of its businesses.
We can very well understand the concept of corporate advertising by taking the example of
ICICI Prudential communication. When Company first began operations, the task was to
present the visiting card of the company to the public at large and build credibility and stature
and to give the consumer the confidence that ''here is a company that can be trusted to invest
funds with.''
This required a corporate campaign - to establish the brand, build awareness and give the
brand a larger-than-life image.
The advertising idea, which was encapsulated in symbols of protection from the initial print
campaign, culminated in the corporate film where sindhoor was used as an endearing and
lasting symbol of protection. Once the corporate image and brand identity were established,
and as the company expanded and its product range grew, the next phase of communication
was to give the
consumer a rational and tangible reason to buy - first of all insurance and secondly from
ICICI Prudential Life. This was tackled through product-specific advertising, such as for
ICICI Pru Smart Kid, retirement solutions or LifeTime.

2.2.KEY SUMMERY
Create a good citizen image through consistent & dedicated effort.
Convey the organizations commitment to the concerned publics as well as to the
masses & eliminate prejudices, if any held by opinion leaders in particular & by the
public in general.
Boost both employee management relation & employee morale enabling all
Members of the internal public to discover a new vitality.

2.3. RESEARCH METHODOLOGY

Research Methodology has many dimensions, it include not only research methods
but also considers the logic behind the methods used in the context of the study and explains
why only a particular method of technique had been used so that research lend themselves to
p[roper evaluations. Thus in a way it is a written game plan for concluding research therefore
in order to solve research problem it is necessary to design a research methodology for the
problem as the same may differ from problem to problem. Research design is the conceptual
structure within which the research is conducted. Its functions are to provide for the
collection of relevant evidence with minimum expenditure of effort, time and money. But,
how this can be achieved depends on the research purpose. In my study the research purpose
is exploratory study i.e. to gain familiarity with phenomena or to achieve new insights in it.
MARKET RESEARCH DESIGN : Descriptive type
DATA SOURCES

: Primary source

RESEARCH APPROACH

: Survey method

RESEARCH INSTRUMENT

: Questionnaire

TYPE OF QUESTIONS

: Close-ended

SAMPLE SIZE

: 100 samples

MODE OF COLLECTING DATA: Respondents to be chosen randomly.

SAMPLE DESIGN:
Social phenomenon being very vast, it becomes impossible to contact each and every
individual of population due to limitation of essential resources like time and money.
Therefore, the study is preferably narrowed down to a representative sample to make the
study more manageable. Quota sampling is adopted in the exploratory study. It is a nonprobability study in which various insurance players are taken.

SAMPLING UNIT:
The data can be collected from primary sources. The basic premises of my study are
primary data but at the same time it is supplemented with the secondary data. Sampling unit
is a unit which would be considered for the purpose of study to conduct the comparative
study of the ICICI Prudential and other insurance companies with special reference to Unit
Link Plans.
SAMPLING SIZE:
It refers to the number of items to be selected from the universal, to constitute a sample. To
commence the study various insurance players are taken.
HOW DID I GO ABOUT THE PROJECT:-

SAMPLE SIZE
A sample size of 100 customers was selected to do this project, which was random sampling
keeping in mind the basic criteria.

FIELD WORK
The research was done for a period of 2 months in (students, government employee & other)
ambala. I started with MY MARKET 100 and thereafter I used to give cold calls from the

companys database and if seemed interested I take along with me the representatives of the
company for further information gathering.
1) Study of Secondary Data: The quickest and the most economical way for researchers to
find possible hypothesis is to take the advantage of the work done earlier and thus utilize
their efforts.
2) In-depth Interviews: I used in-depth interviews because it attempts to influence
respondents to talk freely about their subject of interest .A formal questionnaire was made
and according to which the questions were asked to the respondents.
Basic methods of collecting Primary Data:
1) Questionnaire Method: The questionnaire used by me for the purpose of data collection
were of structured type (Non-disguised).
2) Contact Method: In order to derive information from the intended organization, it was
elementary for me to search for a link which could enable me to conduct a research in that
organization.

OBJECTIVE OF THE STUDY

The project undertaken by me as a part of my Summar Training of M.B.A.course is an effort
made to study the ULIP policies and activities in ICICI PRUDENTIAL with special emphasis
on unit linked products of the company.
In this era of cut throat competition, any organization needs to select and retain the best
talent. People selected should have positive attitude, ability to inspire others and must be
dynamic.
The main objectives of this study are:

Working of Unit linked Insurance Plans

SWOT analysis of the product sold

Comparative study with the competitor.

Study tax planning solutions available in the market.

Study asset allocation through insurance plans.

Market interphase.

CHAPTER-3

3.1. INDUSTRY PROFILE

Background
In 1912, the Indian life insurance companies Act was passed .

This was the first

comprehensive legislation in India to regulate the business of insurance. it had been observed
that the provisions of Indian Companys Act did not meet the purpose. A further legislation
was passed in 1928, But a comprehensive legislation was passed in 1938. The amendments in
the act were made in 1956 when insurance was nationalized and LIC and GIC were formed.

Life insurance business was nationalized with effect from 19 January 1956 and 256
companies were merged. Insurance Act was further amended in 1999 and IRDA was formed
in view of the circumstances arising out of opening up of insurance industry in 2000.IRDA
authority to protect the interest of the holders of insurance policies, to regulate , promote and
ensure the working of all companies.

As we enter into the new millennium, economies of the world over are getting
redefined and remodeled with the new mindsets, new technologies, new riles and new
directions. Financial sector reforms received top priority ever since the Govt. of India
initiated the process of economic liberalization. These reforms are extending the horizons of
the financial services sector and have been transforming our capital markets , banking and
financial services industries.

In the last four decades , after nationalization of the insurance industry , certain socioeconomic objectives were achieved through public ownership of the insurance business. Yet,
market oriented dynamism was missing as evidenced by the lack of
product innovations, high premium rates and limited use of information technology.
The insurance sector reforms have encouraged Blue-Bloods of Indian corporate sector
TATA,ICICI,HDFC,BIRLA,SBI,RELIANCE,KOTAK etc to tie up with worlds largest
insurance majors to capture slice of the countrys potential insurance market.
This has brought abuzz activities in insurance business. New players are wooing the customer
with promises of better services and customized products. The LIC and GIC are countering
the competition on the strength of their track records, distribution networks and so on.

This new scenario will witness financially sound and experienced players transforming the
industry with best products in service and product development , operational efficiency,
marketing capability, service plus and tech-savvy orientation. As a result, the insurance
business can become global with e-business applications.

It is awkward business playing value figures on peoples lives. It is almost as

awkward as selling the likelihood of an event people do not want crossing their minds . in
India, it is rather a shrub. For this reason alone life insurance is no ordinary market. Under the
pressure of competitors differentiate their offerings, insurers no longer sell life insurance as a
product that meets a basic need , many of them sell though the appeal of a wide variety of add
on benefits ranging from tax saving to investment return, sometimes pitying more emphasis
on these basic benefits.

This assumes significance because India is witnessing foreign competition in

this sector after a long monopoly period.
There is consensus on success becoming a function of market strategy. So far
the market has been shaped by LIC . it is only recently that private insurers with 74:26
joint ventures between Indian and foreign companies have been formed under the
watch of IRDA. ICICI prudential, HDFC slandered life and Max New York Life were
first off the block, followed by Kotak Mahindra, Royal Sundram,TATA Aig,Birla
Sunlife,SBI Life and ING Vyasa which were started later.
Sudden burst of competition itself is a unique occurrence. The Indian market
distinguishes itself in other ways too, most notably in the areas of consumer
perception and investment option. So it is worth which will the market move and what
could be the winning strategies. Basic premise is clear that life insurance is a
specialized business.

LIFE INSURERS
1.

BAJAJ ALLIANZ LIFE INSURANCE CO.LTD.

2.

BIRLA SUNLIFE INSURANCE CO. LTD.

3.

HDFC STANDARD LIFE INSURANCE CO. LTD.

4.

ICICI PRUDENTIAL LIFE INSURANCE CO. LTD.

5.

ING VYSYA LIFE INSURANCE CO.PVT.LTD.

6.

LIFE INSURANCE CORPORATION OF INDIA.

7.

MAX NEWYORK LIFE INSURANCE CO. LTD.

8.

METLIFE INDIA INSURANCE CO. PVT.LTD.

9.

KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE CO. LTD.

10.

SBI LIFE INSURANCE CO.LTD.

11.

TATA AIG LIFE INSURANCE CO.LTD.

12.

AVIVA LIFE INSURANCE CO. LTD.

13.

SAHARA LIFE INSURANCE CO. LTD.

Life Insurance Companies

ICICI Prudential Life Insurance Company Limited
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 joint 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. ICICI Prudential collected Rs.1584
corers as their premium during 2004-05 & the market share of ICICI pru. as per their
premium is 5.63% as a whole but in the pvt .co .ICICI hold 40% of market share.
ING VYSYA LIFE INSURANCE COMPANY PVT. LTD.
ING Vysya Life Insurance is a joint venture between three pioneers, ING
Insurance Vysya Bank.
ING Group: Over the last 150 years, ING Group has grown to become one of the largest
life insurance organizations in the world. Today it touches the lives of over 50 millions
people across 65 countries. It offers a range of financial services including insurance,
pensions, banking and asset management. In the year 2000,total assets of the group stood
at over INR 28,42000 corers.

KOTAK MAHINDRA LIFE INSURANCE COMPANY LTD.

Kotak Mahindra life Insurance Company Limited is a joint venture
between Kotak Mahindra Finance Ltd and Old Mutual.
Kotak Mahindra Finance Ltd.
Kotak Mahindra is one of the Indias leading financial institutions,
offering complete financial solution that encompasses every sphere of life. From
Banking, to stock Broking, to Mutual Funds, to Life Insurance, to Investment Banking,
the company caters to the financial needs of individuals and corporates.
Old Mutual
Old Mutual, a company with over 157 years of experience in life
insurance business, has the largest financial services business in South Africa, through its
life assurance, asset management, banking and general insurance operations. Being listed in
London Stock Exchange and included in FTSE 100 list of companies, old Mutuals assets
under management are worth $208 billion.
Tata AIG Life Insurance Company:
Tata AIG General Insurance Company Ltd and Tata AIG Life Insurance Company Ltd
(collectively Tata AIG) are joint venture companies between the Tata group Indias most
trusted industrial house and American International grouping (AIG), the leading U.S based
international insurance and financial services organization.

Both promoters have a deep and abiding interest in Indias Insurance sector. Prior to
nationalization, the Tantas pioneered private insurance in India when Sir Dorab Tata set
up new India assurance in 1919.By 1973,when General Insurance was nationalized the Tata
company had a global presence with 56 overseas offices. Aig too has always considered the
Indian insurance sector to be of significance. The AIG companies entered India in 1954 and
had offices in several Indian cities prior to nationalization.
HDFC Standard Life:
HDFC Standard Life Insurance company is a joint venture between Indias largest
housing finance provider, HDFC and Europes largest mutual life assurance company The
Standard Life Assurance Company (UK). HDFC Standard Life Insurance Company Limited
is the first private sector life insurance company to be granted a license.
Standard Life, UK, found in 1825. The UK insurance industry for 175 years by
combining sound financial judgment with integrity and reliability. It is the largest mutual life
company in Europe and has total assets of Rs.5,50,000 crore sit is one of the very few
insurance companies in the world to have AAA rating from two of the leading international
credit rating agencies, Moody and Standard and Poors. Standard Life was recently voted
company of the decade in UK by the independent Brokers called IFAs.
LIFE INSURANCE CORPORATION OF INDIA (LIC)
The Life Insurance Corporation (LIC) was established about 49 (in1956) years ago
with a view to provide an insurance cover against various risks in life .A monolith then, the
corporation, enjoyed a monopoly status and become synonymous with life insurance.Its
main asset is its staff strength of 1.24 lakhs employees and 2048 branches and over sixlakh agency force. LIC has hundred divisional offices and has established extensive
training facilities at all levels .At the apex, is the Management Development Institute,
Seven Zonal Training centers and 35 Sales Training Centers.

At the industry level, along with the Government and GIC, it has helped established the
National Insurance Academy. It presently transacts individual life insurance businesses,
group insurance businesses, social security schemes and pensions, grants housing loans
through its subsidiary; and markets saving and investment products through its mutual
fund. It payoff about Rs 6000 crore annually to 5.6 million policyholders. Market share of
LIC which is 82.3%.By the LIC 1.09 crores policies has been sold that was in the 2004-05
& the total premium that are collected by LIC in 2004-05 was Rs.9007 crores.

ALLIANZ BAZAZ LIFE INSURANCE COMPANY

Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto,
trusted for over 55 years in the Indian market ,together are committed to offering financial
solutions.
Characterized by global presence with a local focus and driven by customer
orientation to establish high earnings potential and financial strength, Allianz Bajaj Life
Insurance Co Ltd was incorporated on 12th March 2001.The company received the
insurance regulatory and development Authority (IRDA) Certificate of Registration on 3 rd
August 2001 to conduct Life Insurance business in India. The Market share of Bajaj
Allianz in 2003-04 was .95% which has been increases in 2004-05 and it is know 2.03%
which depicts the financial position of the co.

Overview

3.2. COMPANY PROFILE

Indias Number One private life insurer, ICICI Prudential Life Insurance Company is a joint
venture between ICICI Bank-one of Indias foremost financial services companies-and
Prudential plc- a leading international financial services group headquartered in the United
Kingdom. Total capital infusion stands at Rs. 20.60 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 over 580 offices,
over 234,000 advisors; and 22 bancassurance partners.
ICICI Prudential was 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 Indias 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.

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. Heres 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 childs 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 its 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 16,000 plus strong 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.

Promoters
ICICI Bank

ICICI Bank (NYSE:IBN) is Indias second largest bank and largest private sector bank with
over 50 years presence in financial services and with assets of over Rs 3446.58 bn (USD 79
billion) as on March 31, 2007. The Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels and through its
31pecialized subsidiaries in the areas of investment banking, life and non-life insurance, private
equity and asset management. ICICI Bank is a leading player in the retail banking market and
services its large customer base through a network of over 950 branches and extension
counters, 3300 ATMs, call centers and internet banking (www.icicibank.com) to ensure that

customers have access to its services at all times.

Prudential Plc
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the
US and Asia, provides retail financial services products and services to more than 20 million
customers, policyholder and unit holders and manages over 251 billion of funds worldwide (as
of 31 December 2006). In Asia, Prudential is the leading European life insurance company with
life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand, Vietnam. Prudential is the second largest retail fund manager for
Asian sourced assets ex-Japan as at June 2006. Its fund management business has expanded
into a total of ten markets : China, Hong Kong, India, Japan, Korea, Malaysia, Singapore,
Taiwan, Vietnam and United Arab Emirates.

Vision & Values

Our vision:
To make ICICI Prudential the dominant Life 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
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, Boundary less, 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, Boundary less, Ownership, and Passion. These values shine forth in all we do, and have
become the keystones of our success.

CT SHEET

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's capital stands at Rs. 20.60 billion with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. As of March 31, 2007, the company garnered Rs.
4,843 crore of weighted retail + group new business premiums and wrote over 1.96 million
retail policies. The company has assets held to the tune of over Rs. 15,000 crore.
ICICI Prudential 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 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, please visit
Distribution

ICICI Prudential has one of the largest distribution networks amongst private life insurers in
India. As of March 31, 2007 the company has over 580 offices across the country and over
234,000 advisors.
The company has over 22 bancassurnace partners, having tie-ups with ICICI Bank, Federal
Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative
Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank, 9
Bank of India sponsored Regional Rural Banks (RRBs), Sangli Urban Co-operative Bank,
Baramati Co-operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Cooperative Bank.
Flexible Rider Options
ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal
cost, depending on the specific needs of the customer.

1.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 traveling in an authorized mass transport vehicle, the beneficiary will be
entitled to twice the sum assured as additional benefit.
2.Critical Illness Benefit: protects the insured against financial loss in the event of 9
specified critical illnesses. Benefits are payable to the insured for medical expenses prior to
death.
. 3.Waiver of Premium: In case of total and permanent disability due to an accident, the
future premiums continue to be paid by the company till the time of maturity. This rider is
available with LifeTime Super, LifeTime Super Pension and CashPlus.
About the Promoters
ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with
over 50 years presence in financial services and with assets of over Rs 3446.58 bn (USD 79
billion) as on March 31, 2007. The Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its specialised subsidiaries in the areas of investment banking, life and non-life

insurance, private equity and asset management. ICICI Bank is a leading player in the retail
banking market and services its large customer base through a network of over 950 branches
and extension counters, 3300 ATMs, call centers and internet banking www.iciciprulife.com
to ensure that customers have access to its services at all times.
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe,
the US and Asia, provides retail financial services products and services to more than 20
million customers, policyholder and unit holders and manages over 251 billion of funds
worldwide (as of 31 December 2006). In Asia, Prudential is the leading

European life insurance company with life operations in China, Hong Kong, India,
Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam.
Prudential is the second largest retail fund manager for Asian sourced assets ex-Japan as at
June 2006. Its fund management business has expanded into a total of ten markets : China,
Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab
Emirates.
The ICICI Prudential Life Insurance Company Limited Management team comprises
reputed people from the finance industry both from India and abroad.
Ms. Shikha Sharma, Managing Director & CEO
Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Ms. Anita Pai, EVP Customer Service & Technology
Mr. Azim Mithani, Chief Actuary
Mr. Puneet Nanda, Chief Investments Officer
Mr. Binayak Dutta, Chief Sales and distribution

Mr. N. S. Kannan
Executive Director
ICICI Prudential
Life Insurance Company Limited

N. S. Kannan joined ICICI Prudential Life Insurance Company Ltd as Executive Director
in August 2005, where he has overall responsibility for sales, marketing, investments,
group business and business intelligence. Prior to joining ICICI Prudential, Kannan was
the Chief Financial Officer and Treasurer of ICICI Bank Limited where he was
responsible for investor relations and for the finance, performance management, accounts,
taxation, risk management, secretarial and credit middle office functions. The treasury
operations of ICICI Bank include Balance Sheet Management and Asset and Liability
Management. ICICI Bank is the second largest bank in India with an asset base of about
US$ 55 billion. The bank is listed on Indian national stock exchanges and the New York
stock exchange. Kannan joined ICICI group in 1991 as a project officer. During his
tenure at ICICI group, he has handled project finance operations, infrastructure financing,
structured finance and treasury operations. Prior to his current assignment, he has headed
the Telecom & Transportation group and Structured Finance group of the bank.Kannan is
a postgraduate in management from the Indian Institute of Management, Bangalore with a
gold medal for best all-round performance. He is also a Chartered Financial Analyst from
the Institute of Chartered Financial Analysts of India and an Honours graduate in
Mechanical Engineering. His work experience includes 3 years of industrial experience
with a large engineering group in India.

SWOT ANALYSIS OF ICICI PRUDENTIAL

STRENGTHS

ICICI PRUDENTIAL is the largest private player in the insurance industry in India,
with a market share of around 36% amongst the private players.

ICICI PRUDENTIAL has deposited a paid up capital of Rs. 925 crores with IRDA as
a caution deposit, the highest amongst all the life insurance companies in India
whereas LIC has deposited only 60 crores so far.

ICICI PRUDENTIAL is the first life insurance company to offer ECS debit facility.

ICICI PRUDENTIAL is the first company to introduce unit linked life insurance and
pension products. Presently the maximum numbers of ranges are under ULIP like life
insurance, investment as well as pension plans.

Its Venture funds management co. Ltd is Indias largest venture capital company.

PRODUCTS:

Flexibility to switch your fund value at your own discretion 4 times a year
Viz Maximiser, Protector, Balancer, Preserver.

Greater transparency- policyholder knows what is happening to his money and

where the company has invested the money.
Liquidity option: you can make partial or complete withdrawals anytime after
3 years.
Life insurance plans are eligible for deduction under Sec. 80C.
The proceeds or withdrawals of life insurance policies are exempt under Sec
10(10D), subject to norms prescribed in that section.
Riders are provided to give the policyholder the additional protection at
marginal cost- Accident and Disability rider, Critical Illness Rider, Accidental
benefit rider.
Loan against the policy
: After the policy has acquired a surrender value
one can avail loan against the policy.

WEAKNESSES

Industry in nascent stage.

Rural areas still not covered.

Not very well known among the Indian population.

Lack of credibility in the public because ICICI being a private player.

Premiums are high as compared to its competitors.

Very few branches in the country.

PRODUCTS:
The policy doesnt have the surrender option before the 3rd year.
Plan do not offer any guarantee or assured return
The product profile is not very comprehensive.
Mortality, management and administrative charges are sky-scraping as
compared to its competitors.

OPPORTUNITIES

Liberalization of Indian economy.

As the industry is growing the whole market is virgin.

The whole private sector is open to be tapped even though the competition is fierce
from government owned insurance companies.

Its a volume business that is even if the company has few good corporates the
turnover ceases to increase by manifold.

PRODUCTS:
Preserver fund looks good due to comfortable liquidity in the economy and
there is little chance of any hike in short-term rates by RBI.
Finance minister unveiled a budget-favoring consumer spending, boosting
demand and therefore higher economic growth

THREATS

The Govt. players will become aggressive thus growth is going to be tough.

Entry of other new players is not ruled out

Apprehension towards ICICI PRUDENTIAL being a private life insurance company.

We expect the industry to rationalize in future that is mergers and acquisitions will
happen which will impact the industry and ICICI PRUDENTIAL fortunes.

PRODUCTS:

 Past performance of these plans is not indicative of the future performance of the
plan
The sum invested in the funds is subject to market risks and there can be no
assurance that the objective of the plans will be achieved.
All benefits payable under the policy are subject to the tax laws and other
financial enactment, as they exist from time to time

MEANING OF ULIP

A policy, which provides for life insurance where the policy value at any time varies
according to the value of the underlying assets at the time. ULIP is life insurance solution that
provides for the benefits of protection and flexibility in investment. The investment is
denoted as units and is represented by the value that it has attained called as Net Asset Value
(NAV).

Unit linked
insurance
plans

Units in
funds

A ULIP structure looks like as follows:

Underlying
investment

Contribution

Less charge

Investment represented as
units

Life cover

FEATURES OF ULIP
ULIP distinguishes itself through the multiple benefits that it provides to the consumer. The
plan is a one-stop solution providing:
Life protection
Investment and Savings
Flexibility
- Adjustable Life Cover
- Investment Options
Transparency
Options to take additional cover against
- Death due to accident
- Disability
- Critical Illness
- Surgeries

 Liquidity
Tax planning
The two strong arguments in favour of unit-linked plans are:

Firstly, the investor knows exactly what is happening to his money

Secondly it allows the investor to choose the assets into which he wants his funds
invested.

An investor in a ULIP knows how much he is paying towards mortality, management and
administration charges. He also knows where the insurance company has invested his money.
The investor gets exactly the same returns that the fund earns but he also bears the investment
risk. The transparency makes the product more competitive. So if you are willing to bear the
investment risks in order to generate a higher return on your retirement funds ULIPs are for
you. Traditional with profits policies too invest in the market and
generate the same returns prevailing in the market. But here the insurance company evens
out returns to ensure that policyholders do not hold money in a bad year. In that sense they
are safer. ULIPs also offer flexibility. For instance a policyholder can ask the insurance
company to liquidate units in his account to meet to mortality charges if he is unable to pay
any premium installment. This eats into savings but ensures that the policy will continue to
cover his life.
ULIP came into play in the 1960s and became very popular in Western Europe and Americas.
The reason that is attributed to the wide spread popularity of ULIP is because of the
transparency and the flexibility which it offers. Unit- linked plans are a contemporary
product: transparent and flexible. Individuals have greater control over their investments. The
popularity of ULIPS stems from the fact that they offer customers integrated financial
solutions with a transparent charge structure. In todays times, ULIP provides solutions for
insurance planning, financial needs, financial planning for childrens future and retirement
planning. Unit-linked insurance plans (ULIPs) have become something of a rage with their
'promise' of market-linked returns combined with the dual benefit of insuring your life from
eventualities.
Why do insurers prefer ULIPs?
Insurers love ULIPs for several reasons. Most important of all, insurers can sell these policies
with lesser capital of their own than what would be required if they sold traditional policies.

In traditional with profits policies the insurance company bears the investment risk to the
extent of insured amount. In ULIPs the policyholder bears most of the investment risk. Since
ULIPs are designed to mobilize savings, they give insurance companies an opportunity to get
a large chunk of asset management business which has been traditionally dominated by
mutual funds. ULIPs are suitable for individuals who are already adequately insured and are
reasonably well-informed and savvy to take active investment decisions by using the `switch
option' that is provided to a ULIP policyholder. Also policyholders with regular endowment
plans who are not satisfied with the 4-6% returns can consider taking a ULIP with a lower
equity component. It is best if insurance-seekers tread the middle path and choose balanced
plans (with about 50-60% equity
component). Ideally they need to avoid taking the aggressive 100% equity ULIP, which could
needlessly expose their assets to market volatility. So if insurances-seekers/investors play
their cards right, they can make this marriage work.

WORKING OF UNIT LINKED INSURANCE PLANS

SUPER SMART KID
SmartKid offers an exclusive choice of 3 education insurance plans: SmartKid New Unitlinked Regular Premium, SmartKid New Unit-linked Single Premium and SmartKid Regular
Premium. Take a look at the features and benefits of each plan:
1. SmartKid New Unit-linked Regular Premium
SmartKid New Unit-linked Regular Premium is a unit-linked plan, which enables you and
your child to accumulate wealth by virtue of the performance of the underlying market-linked
instrument. Take a look at the features of the plan:
Premium: The minimum premium to be invested is Rs. 10,000 per annum. After deducting
premium allocation charges from the premium, the remaining amount will be invested in a
fund of your choice.
Sum Assured: The minimum Sum Assured that the policyholder can opt for is Term *
Annual Premium/2, subject to a minimum of Rs 1 Lac
Policy term: The term of the policy will be calculated as the difference between your child's
current age and the age of your child when the policy matures.

Mortality, Policy Administration charges:

the units in the fund.
2. SmartKid New Unit-linked Single Premium
SmartKid New Unit-linked Single Premium works in much the same way as SmartKid New
Unit-linked Regular Premium policy mentioned above. The only different feature is the
premium amount-you will be required to pay only a single premium, which starts at as low as
Rs. 50,000.
Additional Features and Benefits Common to All 3 Plans

Regular payouts:
standard or graduation exams, he or she will receive regular payouts, guaranteeing he or she
continues to study, no matter what the circumstance.
Death Benefit:
happen to you. ICICI Prudential will pay the remaining premiums, ensuring your child
continues to receive policy benefits, as always.
Income Benefit Rider:
education plan. Should you depart before your son's or daughter's education is complete, you
child will receive 10% of Rider Sum Assured, for the balance term of the policy.
Add-on riders:
ensure your child stays doubly protected, at all times. You can choose to add these to your
child's education policy.
Tax benefits:
80(C)]. Maturity and death benefits are eligible for tax exemptions [u/s 10(10D)].
3. SmartKid Regular Premium
Flexible investment option: Choose the amount of premium with which you wish to
safeguard your child's education.
Flexible policy tenure:
your child's current age and his or her age at which the policy matures.
Flexible premium options:
Assured, policy tenure and your age.
Guaranteed bonus:
premium paying years plus an annual vested bonus declared in subsequent years.

LifeLink Super

Well-deserved financial incentives, rewarding business profits and even ancestral money are
precious amounts that you should invest immediately so they earn you potentially higher
returns in the long run.
Invest in ICICI Prudential's LifeLink Super policy-a single-premium unit-linked policy

that works best for investors who have in mind long-term financial goals, such as the
education of a child or the purchase of a larger home.
Apart from the potentially higher returns that you can earn, LifeLink Super insures your
family against misfortunes with its protective insurance cover.
Read more about the features and benefits of this plan, right away.

LifeLink Super at a glance

Minimum/Maximum Entry Age

0 years to 65 years
Maximum Age at Policy Maturity
70 years
Minimum Policy Term
5 years
Minimum Single Premium
Up to age 44: Rs. 25,000, age 45 and above: Rs.
50,000
Minimum Sum Assured

Annual Premium x Term/2. Subject to a

minimum of Rs. 1,00,000

Tax Benefit
Premium payment up to 20% of the Sum
Assured is eligible for benefit under Sec. 80C.
Any amount paid to you will be eligible for tax
benefits under Sec. 10 (10D) exemption, if
premium paid in any year does not exceed 20%
of the Sum Assured.

Features and benefits of LifeLink Super

2 options of Sum Assured: Choose to receive either 125% or 500% of the single premium
amount.
Flexible policy term: Decide how long you wish to invest in this policy. You can invest for a
minimum of 5 years and keep your investment growing for as long as you wish after that.
Partial withdrawal of money: Withdraw funds in installments from the 4th year onwards.

Attractive premium allocation rates: Enjoy 100% allocation for premium amounts equal to
or greater than Rs. 5 lacs.
6 investment funds: Select among Flexi-Growth, Maximiser, Flexi-Balanced, Balancer,
Protector, and Preserver, based on your financial goals and risk profile.
Switch benefit: Switch between funds anytime to maximize on market movements. You can
switch funds 4 times a year, at no cost. For subsequent switches, you will be required to pay a
switch fee of Rs. 100.
Maturity benefit: Receive the Fund Value when your policy matures. Choose to take this

value as a single lump-sum amount or in monthly, bi-annual or annual installments spread

over 1 to 5 years.
Death benefit: Your family receives the higher of Fund Value or Sum Assured should
something happen to you.

Why LifeTime Super

As an individual who desires a lot from life-a car, a beautiful home and of course, the comfort
and contentment of your family-you would undoubtedly want to plan your finances such that
you can take care of all your requirements.
Invest in ICICI Prudential's LifeTime Super policy-a regular-premium unit-linked policy,
which offers potentially higher returns that systematically enable you to meet your long-term
financial objectives. In addition, LifeTime Super also provides the protective benefit of an
insurance cover, which keeps your family secure, always.
Read more about the features and benefits of this plan.

LifeTime Super at a glance

Minimum/Maximum Entry Age

0 years to 65 years
Maximum Age at Policy Maturity
75 years
Minimum/Maximum Policy Term
Premium Payment Frequency
Minimum Premium
Minimum Sum Assured
Tax Benefit (8)

10 years to 75 years
Monthly, half-yearly, yearly
Rs. 18,000 per annum
Annual Premium x Term/2. Subject to a
minimum of Rs. 1,00,000
Premium paid for the policy and critical illness
benefit rider will be eligible for tax benefit
under Sec. 80C and 80D respectively. Any
amount paid to you will be eligible for tax
benefits under Sec. 10 (10D) as per prevailing
Income Tax laws.

Features and benefits of LifeTime Super

Flexible policy term: Decide for how long you want your policy. You can invest for a
minimum of 10 years and a maximum of 75 years.
3 choices of premium payment: Opt to pay the premium on a monthly, bi-annual or an
annual basis.
6 investment funds: Select among Flexi-Growth, Maximiser, Flexi-Balanced, Balancer,
Protector, and Preserver, based on your financial goals and risk profile.
Systematic withdrawal of money: Withdraw money in installments from the 4th year
onwards.

Maturity benefit: Receive the Fund Value when your policy matures. Choose to take this
value as a single lump-sum amount or in monthly, bi-annual or annual installments.
Death benefit: Your family receives the higher of Fund Value or Sum Assured should
something happen to you.
Switch benefit: Switch between funds anytime to adjust your portfolio, based on your goals
and risk profiles. You can switch funds 4 times a year, at no cost. For subsequent switches,
you will be required to pay a switch fee of Rs. 100.
ROLE OF AN ADVISOR IN UNIT LINKED INVESTMENT PLANS
It is important for us to know that what is the role that an advisor will play. At ICICI
Prudential, you are an advisor is to
1. Provide ongoing financial advice for his/her clients: You are an advisor and just like a
lawyer or a doctor you advice the client about insurance and finance.
2. Identify future clients: Life insurance is a business of contacts an the advisor constantly
need to know people so that his business expands.
3. Constantly make appointments: Just making contacts will not be enough to develop a
good life insurance business.
4. Advisor needs to meet these contacts and thus should make appointments on constantly.
5. Conduct financial review meetings with prospects/ clients: As an advisor it is necessary
to meet with client not only for the purpose of selling but also to review the need of the
client and prospects. Many people would not be in for life insurance today but as time
moves they can be requiring one. Similarly an existing client may also be in need of
more insurance as responsibilities and liabilities increase.
Close sale:
Ultimately success is defined as sales. The advisor should lead each
appointment towards a sale and close it effectively where in the client is happy on
purchasing the insurance solution and feels satisfied with it.

CHAPTER-4

4.1.ANALYSIS STUDY WITH THE COMPETITORS

LIST:

LifeTime Super Vs LIC BimaPlus

LifeTime Super Vs Birla SunLife Classic Life

LifeTime Super Vs HDFC Linked

PremierLife Vs Bajaj Allianz Unitgain Plus

LIFETIME SUPER VS LIC BIMAPLUS

Features
Age
Term

LifeTime Super
LIC BimaPlus
0 60 years
12 - 55 years
Minimum premium payment term of

Sum Assured

3years
10 years
Choose your sum assured, subject to Maximum limit upto Rs. 2 lakhs
a minimum sum assured of Rs. 1

Survival benefit

lakh
Value of units (3rd year onwards)

Bid Value of the fund units

along with maturity bonus at 5%

Death benefit

of the Sum Assured

Higher of Sum Assured or value of Death during the first 6 months units.

30% of SA + value of units, next

6 months - 60% of SA + value of
units. Death after 1st year - SA +
value of units. Death during the
10th year - 105% of SA + value

Withdrawal benefit

of units.
Partial or complete withdrawals are Premature withdrawal allowed
available from the 3rd year onwards

after one year (after applying

Contribution
Flexible

bid-offer spread.
Minimum: Rs. 18,000 p.a.
Not specified
Flexibility to increase or decrease in

contribution
Investment options

contribution
Not available
Maximiser, Balancer, Protector &

Preserver.
Increase / Decrease Available.

Balanced, Secured & Risk

Not available

of death benefit
Bonus units
Top-up

Available
Not Available.
Available. Minimum top-up of Rs. Available (Charges: 1.5% of the
5000. Charges - 1% of top-up.
top-up)
4 free switches a year, with the No free

switches.

Cost

of

minimum switch amount being Rs. switching is 2% of the fund

Switch
Surrender value

2000.
value.
The policy will acquire a surrender Partial surrender up to 50% of
value after 3 complete premium- bid value of units allowed after 3
paying years. The surrender value is years

Initial Charge

from

100% of the value of investments.

commencement
% Allocation of the premium
Not Disclosed
18000- 49,999: 1st year - 80%; 2nd
year - 92.5% ; 3rd year onwards 96%.
50000 and above: 1st year - 82%;
2nd year - 92.5%; 3rd year onwards -

date

of

Admin Charge
Other Charges

96%.
None
Not applicable
Not applicable
Not applicable
The annual administrative and fund
management charge is 2.25% for
Maximiser, 2.25% for Balancer,

Fund Management 1.50% for Protector & 0.75% for

Charges

Preserver.

1% of the fund per annum

IFETIME SUPER VS HDFC LINKED

Features
Age
Term

LifeTime Super
HDFC Linked
0 - 60 years
18 - 60 years
Minimum premium payment term of 10 - 30 years

Sum Assured

3years
Choose your sum assured, subject to Only

5,10,

20

(age-based)

a minimum sum assured of Rs. 1 multiples are allowed as Sum

Survival benefit
Death benefit

lakh
Assured.
Value of units (3rd year onwards)
Value of units
Higher of Sum Assured or value of Higher of Sum Assured or value

Withdrawal benefit

units.
of units.
Partial or complete withdrawals are Partial withdrawal
available from the 3rd year onwards

available

from the 3rd year onwards,

provided that the Value of Units
does not go below the Sum

Contribution

Minimum: Rs. 18,000 p.a.

Assured.
Minimum: Rs. 10,000 p.a.

Flexible

Flexibility to increase or decrease in Available

contribution
Investment options

contribution.
Maximiser, Balancer, Protector & 5
Preserver.

Increase / Decrease Available.

Fund

Options-

Defensive

Balancer,

Managed,

Safe

Managed, Liquid & Growth

Not available

of death benefit
Bonus units
Top-up

Available
Not available
Available. Minimum top-up of Rs. Available

Switch

5000. Charges - 1% of top-up.

4 free switches a year, with the Switches are free as of now. But
minimum switch amount being Rs. the company reserves the right

Surrender value

2000.
to put a charge on the switches.
The policy will acquire a surrender The surrender charge is 25% of
value after 3 complete premium- 3
paying years.

Initial Charge

years

outstanding

regular

premium. No charges after 3

years
% Allocation of the premium
Charges
18000- 49,999: 1st year - 80%; 2nd 1st yr-27%, 2nd yr- 27%, 3rd yr
year - 92.5%; 3rd year onwards - onwards- 1%
96%.
50000 and above: 1st year - 82%;
2nd year - 92.5%; 3rd year onwards -

Admin Charge

96%.
None

Admin charges of Rs.180 fixed

charge per annum.

Other Charges
Not applicable
Not applicable
Fund Management The annual administrative and fund Investment charge of 0.80% of
Charges

management charge is 2.25% for the Fund Value across all the
Maximiser, 2.25% for Balancer, funds.
1.50% for Protector & 0.75% for

Rider

Preserver.
ADBR, CIBR & MSAR

ABR & CIBR

SUPER PREMIER LIFE VS BAJAJ ALLIANZ UNITGAIN PLUS

Features
Age
Term

Super Premier Life

Bajaj Allianz Unitgain Plus
18 - 60 years
0 - 60 years
Premium paying term of 3 years, 5 Minimum premium payment

Sum Assured

years, 7 years or 10 years.

term of 3 years
Sum Assured multiple is 1 - 25 times Minimum Sum Assured is 5

Survival benefit

the annual premium

Value of units

Death benefit

Higher of Sum Assured decreased by

times the premium paid.

Anytime after payment of 3
full year's premiums.

the amount of withdrawals made or Higher of Sum Assured or

Withdrawal benefit

value of units.
value of units
Partial withdrawals are available after Partial
or

complete

the 3rd policy year and after payment withdrawals are available after
of

years'

premiums.

Complete the 3rd years contribution

withdrawals are available after the 1st

year

premium.

However surrender

Contribution
Flexible

penalties will apply.

Minimum: Rs. 60,000 p.a.
Available

contribution
Investment options

Maximiser,
Preserver.

Balancer,

Protector

Minimum: Rs. 10,000 p.a.

Available
& Equity Index Fund, Equity Plus
Fund, Debt Fund, Balanced

Decrease in death Available.

Fund, Cash Fund

Available

benefit
Bonus units

Not available

Available.

Top-up

Available. Minimum top-up of Rs. Available. Charge are 2% of

Switch
Surrender value

5000. Charges - 1% of top-up.

the top-up amount
4 free switches a year.
Three free switches every year.
The policy will acquire a surrender Withdrawals are only allowed

Initial Charges

value from the 1st year onwards.

after payment of 3 full year's

% Allocation of the premium

3 year premium paying term

premiums
% Allocation of the premium
1st year - 76%; 97% from year
2 onwards

Rs. 60.000 - Rs. 4,99,999: 1st year:

87%; 2nd and 3rd year: 96%
Rs. 5,00,000 and above: 1st year: 89%;
2nd and 3rd year: 96%
5, 7 and 10 year premium paying term
Rs. 60.000 - Rs. 4,99,999: 1st year:
88%; 2nd and 3rd year: 97%; 4th and
5th year: 98%;6th year onwards: 100%
Rs. 5,00,000 and above: 1st year: 90%;
2nd and 3rd year: 97%; 4th and 5th
Admin Charge

year: 98%; 6th year onwards: 100%

Admin charge of Rs. 60 / month

Annual admin charges of Rs.

20
Fund Management The annual investment charge is 1.50% 1.5% p.a. for a Equity Plus
Charges

for Maximiser, 1.00% for Balancer, Fund, 1% p.a. for Equity Index
0.75% for Protector & Preserver.

Fund, No specific charges in

case of Balanced Fund, 0.7%
p.a. for Debt Plus Fund and
0.7% in case of Cash Plus

Rider

ADBR & CIBR

Fund.
ABR, ADBR, CI & Hospital
Cash Benefit

STUDY TAX PLANNING SOLUTIONS

AVAILABLE IN THE MARKET
TAX BENEFITS ON INSURANCE AND PENSION
Life insurance and retirement plans are effective ways of saving taxes. The tax breaks that are
available under various insurance and pension policies are described below:

Life insurance plans are eligible for deduction under Sec. 80C

Pension plans are eligible for a deduction under Sec. 80CCC

Health riders are eligible for deduction under Sec. 80D

The proceeds or withdrawals of life insurance policies are exempt under Sec
10(10D), subject to norms prescribed in that section.

Tax Rates for Individuals

The rates of income tax for FY 2007-08 are as follows:

Total Income (Rs.)

Upto Rs 1,00,000/Above Rs 100,000/- to 145,000/Above Rs 145,000/- to 150,000/Above Rs 150,000/- to 195,000/Above Rs 195,000/- to 250,000/Above Rs 250,000/-

Rate of tax
Senior citizen Women below 65
Nil
Nil
Nil
Nil
20%
30%

years
Nil
Nil
10%
20%
20%
30%

Others
Nil
10%
10%
20%
20%
30%

Surcharge on Income Tax: In case where the Total Income exceeds Rs 10,00,000, there
would be a surcharge @ 10%.
Education Cess on Income Tax: Education Cess @2% will be payable on the amount of
income tax (including surcharge).
Benefits under insurance policy - Section 10(10D)

As per Section 10(10D) of Income tax Act, 1961, any sum received under a life insurance
policy, including the sum allocated by way of bonus on such policy is exempt from tax.
However, this rule does not apply to following amounts:
Sum received under Section 80DD (3), or
Any sum received under a Keyman Insurance Policy, or
Any sum received other than as death benefit under an insurance policy which has been
issued on or after April 1 2003 and if the premium paid in any of the years during the term of
the policy is more than 20% of the sum assured.

CHAPTER-5

DATA ANALYSIS & FINDINGS

1). Are you interested in products offered by the ICICI PRUDENTIAL?
Yes

61%

No

22%

Will think

17%

17%

Yes
No
Will think

22%
61%

INTERPRETATION
The good thing is that atleast the corporates were quite eager to find out what ICICI
PRUDENTIAL has to offer whereas the major 39 % of the corporates were not even
interested in the products as they are quite satisfied by the LIC and they are not in breaking
their long relationship with them. The private players will have to play a long battle in order
to ensure that they are serious player in the market. Basically corporates think that its too
early to invest in private companies as they have just entered the scene and they are unsure of
the security they will have about their investment.

2). Are you satisfied with your present insurer?

YES

65%

No

35%

35%

Yes
No
65%

INTERPRETATION

Here is where the challenge is. Inevitably most of the players are very satisfied with their
present insurer which makes it more tough for the private players to attract the corporates.
The remaining 35 % are also not very dissatisfied by the services but they are just open to
new avenues and are looking forward that private companies come with good offers so that
they may shift to them. Thus private players will have to be very proactive and in this regard
since LIC is the leader and ICICI PRUDENTIAL is lagging behind its competitors in terms
of competition.

3). Where would you like to insure if given chance?

LIC

60

ICICI

10

BAJAJ ALLIANZ

TATA AIG

15

SBI

KOTAK MAHINDRA

60

60

50

NO
OF
PEOPLE

40
30
15

20

10

10
0

LIC

SBI

TATA AIG

ICICI

BAJAJ

KOTAK
MAHINDRA

COMPANIESS
INTERPRETATION

Thus we see that the companies are comfortable in having business with govt. owned
companies as they feel its safe & secure to have business with them which is followed by SBI
as it is the biggest bank and then followed by TATA AIG as the name TATA is associated with
it which commands huge premium in the market . Whereas in the case of ICICI
PRUDENTIAL the figures represent mediocre performance after compelling and coxing the
corporates and creating a strong impression whether they feel interested in doing business
with the company.

4). What is peoples main concern while taking a insurance policy (ULIP)?
A) Security
B) Returns
C) Tax rebate

40%
28%
32%

INTERPRETATION
People invest in insurance mainly because of security concern.

5). Are you aware of LifetimeSuper introduced by ICICI Prudential limited?

Yes

58%

No

42%

INTERPRETATION

The awareness level among the corporate about ICICI PRUDENTIAL offering services is
very low and the company needs to work on it. Today is the world of marketing thus it is
recommended that company should become more media friendly by advertising more
through television channels, radio, newspapers, magazines, journals &editorials.

CHAPTER-6

6.1. LIMITATIONS

The geographical area was very much limited to residential area & so the results are
not particularly reflection of the current behavior.

Biases and non-cooperation of the respondents.

Due to limited time period and constrained working hours for most of the
respondents, the answers at times were vague enough to be ignored.

Most of the people in India take their policies in the period preceeding March(for tax
saving purposes) & so the response to initial contacts were not all encouraging and
that has been the primary reason in the inability to quantify the results large enough so
as to reduce any relevant outcomes.

Most of the results that are spelt out have been of qualitative aspects.

People are not interested in giving personal opinion.

6.2. FINDINGS & RECOMMENDATIONS

More emphasis should be on promotional activities.

Plenty of advertisement should be done through T.V, Newspaper and Radio as these
medias are having maximum recall value.

Total financial planning and advice should be given to every customer.

More business opportunity seminars should be conducted to make people aware of the
offer given.

The company should quite frequently send their agent to the customer so that they
should be aware of the latest offer.

The company should attempt to open more and more of its branches in the country so
as to promote their product publicity.

CONCLUSION
LIC enjoys credibility over other private players in the industry People look for
security over returns in market linked plans .Lifetime is the most popular product
among the people who are aware about ICICI Prudentials products. People are now
showing more interest in ULIP as compared to some of the traditional plans.
ICICI PRUDENTIAL has to counter the distribution network of LIC .The product
profile of ICICI PRUDENTIAL is not very comprehensive

BIBLOGRAPHY

www.iciciresearchcenter.org

www.tata-aig.com

www.iciciprulife.com

www.personalfn.com