A Project Report On

STUDY ON LIFE, HEALTH AND PENSION INSURANCE

AT

ICICI PRUDENTIAL

INTERNATIONAL
SCHOOL
of

INFORMATICS &
MANAGEMENT

(Formerly India International Institute of Management) A Heritage of Vision A Legacy of Innovation

Under the guidance of by:

1

Submitted

PREFACE The World is changing at the speed of thought. The Insurance market worldwide has seen some turbulence since the privatization of the insurance industry in the year 2000. We have seen many private sector Insurance players setting up operations. A financial planner one said about life insurance buying habits of Indians: they dont buy life insurance; its sold to them. Unfortunate, but true. Individual awareness and understanding of life insurance products is extremely low, and many among the insured dont even know whether the life insurance needs, and in a larger context, their personal financial needs. Life insurance is chiefly a risk management tool, meant to offer financial protection to our dependent in the unfortunate event of death. But in India, as, in the most other developing market life insurance has come to represent more than just risk cover.

ACKNOWLEDGEMENT
As per of the MBA curriculum I choose ICICI Prudential Life Insurance Company, Bhilwara for training. The summer training at ICICI Prudential has been a unique experience for us. Instead of routine and mandatory exercise, it was a leap to new field of knowledge and learning. We would like to express our highest respect and regard to the employees of ICICI Prudential. We are deeply obliged to Mr. Jitendra Gupta (Area Manager) whose guidance during the course of training helped us not only in bringing out this report successfully but also provided a real insight into the subject matter. We pay heartful gratitude and thanks to Mr. Kailash Meena (Unit Manager) for his guidance and help during the course of training. We also acknowledge his encouragement to us during the training.

MUKESH KUMAR
MBA (3rd sem.)

TABLE OF CONTENTS
INDIAN INSURANCE INDUSTRY.........................................................................................................5 Introduction.............................................................................................................................................5 What is Insurance ?.................................................................................................................................5 Types of Insurance Plans - Traditional or Unit Linked (ULIP: Unit Linked Insurance Plan)..................6 Benefits of Insurance..............................................................................................................................7 Need of Insurance...................................................................................................................................8 History Of Insurance Sector...................................................................................................................9 Insurance Regulatory & Development Authority (IRDA).......................................................................11 INSURANCE MARKET IN INDIA........................................................................................................13 What is Life Insurance?............................................................................................................................15 Benefits of Life Insurance....................................................................................................................15 Tax Profit: Tax relief in income tax and wealth tax availed on the premium paid for Life Insurance.. .16 Need for Life Insurance........................................................................................................................16 Human Life Value.....................................................................................................................................18 Role of life insurance............................................................................................................................20 Major Life Insurance Policies...................................................................................................................22 List of Well-known Life Insurance Companies...................................................................................24 5 reasons why health insurance is a must.............................................................................................29 Selecting the Right Plan............................................................................................................................31 What is General Insurance?......................................................................................................................32 ICICI Prudential Life Insurance...............................................................................................................35 Overview...............................................................................................................................................35 The ICICI Prudential Edge.......................................................................................................................37 Fact Sheet..................................................................................................................................................39 Board of Directors....................................................................................................................................40 Management Team....................................................................................................................................41 SERVICE STANDARDS.....................................................................................................................47 SWOT ANALYSIS OF THE COMPANY..........................................................................................48 STRENGTHS............................................................................................................................................48 RESEARCH METHODOLOGY.............................................................................................................53

INDIAN INSURANCE INDUSTRY

Introduction
India is the largest democracy in the world having a population more than 1000 million. It is the 5th largest country sin the world in terms of Purchasing Power Parity (PPP). Through Indias economic development, it becomes the most lucrative insurance markets in the world. Before the year 1999 there were monopoly of state run Life Insurance Corporation of India (LIC) in life insurance sector and General Insurance Corporation of India (GIC) with its four subsidiaries in general sector. In the wake of reform process and passing Insurance Regulatory Development Act through Indian Parliament in 1999, Indian Insurance was opened for private companies.

What is Insurance ?
Insurance in its basic form is defined as A contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event." In simple terms it is a contract between the person who buys Insurance and an Insurance company who sold the Policy. By entering into contract the Insurance company agrees to pay the Policy holder or his family members a predetermined sum of money in case of any unfortunate event for a predetermined fixed sum payable which is in normal term called Insurance Premiums. Insurance is basically a protection against a financial loss which can arise on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. By paying a very small sum of money a person can safeguard himself and his family financially from an unfortunate event. For Example if a person buys a Life Insurance Policy by paying a premium to the Insurance company , the family members of insured person receive a fixed compensation in case of any unfortunate event like death.

The Insurance Company act as a trustee to the amount collected through premium.Insurance is generally classified in three main categories, (1) Life Insurance (2) Health Insurance and (3) General Insurance. Types of Insur ance Plans - Tr aditional or Unit Linked (ULIP: Unit Linked Insur ance Plan) Insurance Plans - At a glance Broadly, insurance plans can be distinctly divided into ULIP (Unit Linked Insurance Plans) and traditional plans. A brief detail of both segments: Unit Linked Insurance Plans ULIPs have gained high acceptance due to attractive features they offer. Unit Linked Insurance scheme 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 ones 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 1. A choice of funds (ranging from equity, debt, cash or a combination). 2. Option to choose your fund mix based on desired asset allocation.

Traditional Plans These are the oldest types of insurance 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. 4. Generally withdrawals are not allowed before maturity.

Benefits of Insurance
Insurance is the instrument of security, saving and peace of mind. It provides several benefits by paying a small amount of premium to an insurance company as: (1) Safeguards oneself and ones family for future requirements. (2) Peace of mind in case of financial loss. (3) Encourage saving. (4) Tax rebate. (5) Protection from the claim made by creditors. (6) Security against a personal loan, housing loan or other types of loan. (7) Provide a protection cover to industries, agriculture, women and child.

Need of Insurance
Life Insurance is a contract by which you can protect yourself against specific losses by paying a premium over a period of time. Since each one of us, during our lives are faced with numerous risks failing health, financial losses, accidents and even fatalities, our instinct drives us to cover ourselves against those risks. Though an insurance cover cant protect you against the emotional losses arising out of these risks, it softens the economic crisis that usually accompanies these losses. Life Insurance gains much more value if you are a nuclear family. Unlike in the traditional joint family system, in a nuclear family, support from the extended family cannot be counted upon. So it is vital that you have an insurance cover as the protective shield against unfortunate losses. And its not only your life you could insure against those risks. With the Insurance Industry going through positive changes in the last few decades, now, you have a variety of risk coverage options. For instance, products in the market range from whole life insurance to covering risks associated with home loans. Whats more, now you could choose life insurance as an investment option, the returns of which you can enjoy at the most critical phases of your life for instance, at the time of your childs admission into one of those dream institutes.

History Of Insurance Sector

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 - 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: 1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. Privatization in 1990s As part of the wide-ranging economic reforms initiated in 1991, the structure of the Insurance sector was examined by a committee headed by Mr. R. N. Malhotra. The committees recommendation to open up the sector to private sector participation was implemented by the Government in 2000. The key element in the reform process was the participation of overseas insurance companies, through restricted to 26 percent of the capital. With the Insurance Regulatory and Development Authority Act, 1999 (IRDA) formally coming into force, the insurance industry was opened up for private sector participation. The main objective of setting up the IRDA was to protect the interests of policy holders and to regulate, promote and ensured orderly development of the insurance industry. Over four decades the industry has been a State monopoly. Till date the LIC has insured over 120 million individuals and has a vast sales network of over 7 lakh insurance agents. The industry is witnessing an upsurge in consumer awareness, building immense and unavoidable pressure among the players. Within the short time since the opening up several insurance companies have been licensed by the IRDA. Indian is a market of mainly small policies. The average annual life premium is less than the equivalent of $ 100 Indian is also marketed by a very low insurance penetration rate. Although no authentic statistics is available, a rough estimate is that only 20 percent of the insurable population is insured.

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Insurance Regulatory & Development Authority (IRDA)

MISSION To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. COMPOSITIONS OF AUTHORITY UNDER IRDA ACT,1999 IRDA was constituted by an act of parliament. The Authority is a 10 member team consisting of: (a) (b) (c) A Chairman Five Whole-time members Four part-time members

DUTIES, POWERS AND FUNCTIONS OF IRDA 1) Subject to the provisions of Section 14 of IRDA Act, 1999 and any other law for the time being in force the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. 2) Without prejudice to the generality of the provisions contained in Subsection (1), the powers and functions of the Authority shall includea) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; b) Protection of the interests of the policyholders in matters concerning assigning of policy, nomination by policyholders, insurable interest, settlement of insurance claim, surrender value of the policy and other terms and conditions of contracts of insurance;
c) Specifying requisite qualifications, code of conduct and practical

training for intermediary or insurance intermediaries and agents d) Specifying the code of conduct for surveyors and loss assessors; e) Promoting efficiency in the conduct of insurance business;

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f) Promoting and regulating professional organizations connected with the insurance and re- insurance business; g) Levying fees and other charges for carrying out the purposes of this Act h) Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business; i) Control and regulation of the rates, advantages, terms, and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938(4 of 1938) j) 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; k) Regulating investment of funds by insurance companies; l) Regulating maintenance of margin of solvency; m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries; n) Supervising the functioning of the Tariff Advisory Committee; o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause(f) p) Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector ; and Exercising such other powers as may be prescribed

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INSURANCE MARKET IN INDIA

By any yardstick, India, with about 200 million middle class households, presents 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. Table 1 reflects the low percentage and per capita penetration of insurance in India compared to other developed and developing countries2. With the per capita income in India expected to grow at over 6% for the next 10 years and with improvement in awareness levels, the demand for insurance is expected to grow at an attractive rate in India. An independent consulting company, The Monitor Group has estimated that the life insurance market will grow from Rs.218 billion in 1998 to Rs.1003 billion by 2008 (a compounded annual growth of 16.5%)3. Reforms Reforms have marked the entry of many of the global insurance majors into the Indian market in the form of joint ventures with Indian companies. Some of the key names are AIG, New York Life, Allianz, Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry of new players has rejuvenated the erstwhile monopoly player LIC, which has responded to the competition in an admirable fashion by launching new products and improving service standards. The following are the key winds of change brought about by privatizations. Market Structure There has been an overall expansion in the market. This has been possible due to improved awareness levels due to the large number of advertising campaigns launched by all the players. The scope for expansion is still unlimited as virtually all the players are concentrating on large cities and towns- except by LIC to an extent there was no significant attempt to tap the rural markets. Product innovation There has been a plethora of new and innovative products offered by the new players, mainly from the stable of their international partners. Customers have tremendous choice from a large variety of products from pure term

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(risk) insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional money-back policies, which is not considered very appropriate for longterm protection and savings. However, there are still some key new products yet to be introduced- e.g. health products Customer Service Not unexpectedly, this was one area that witnessed the most significant change wit the entry of new players. There is an attempt to bring in international best practices in service and operational efficiency through use of latest technologies. Advice and need based selling is emerging through much better trained sales force and advisors. There is improvement in response and turnaround times in specific areas such as delivery of first policy receipt, policy document, premium notice, final maturity payment, settlement of claims etc. However, there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels. Channels of Distribution Earlier the only mode of distribution of life insurance products was through Agents. While agents continue to be the predominant distribution channel, today a number of innovative alternative channels are being offered to customers. Some of them are bank assurance, brokers, the internet and direct marketing. Though it is too early to predict, the wide spread of bank branch network in India could lead to banc assurance emerging as a significant distribution mechanism.

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What is Life Insurance?

Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is a loss of income to the household. The family is put to hardship. Sometimes, survival itself is at stake for the dependants. Risks are unpredictable. Death/disability may occur when one least expects it. An individual can protect himself or herself against such contingencies through life insurance. Life insurance is insurance on human beings. Though Human life cannot be valued, a monetary sum could be determined which is based on loss of income in future years. Hence in life insurance, the Sum Assured (or the amount guaranteed to be paid in the event of a loss) is by way of a benefit in the case of life insurance. Life insurance products provide a definite amount of money to the dependants of the insured in case the life insured dies during his active income earning period or becomes disabled on account of an accident causing reduction/complete loss in his income earnings. Life insurance ensures that your family will receive financial support in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It protects your family from financial crises. An individual can also protect his old age when he ceases to earn and has no other means of income by purchasing an annuity product.

Benefits of Life Insurance

There are some benefits of Life Insurance as: Protection: Life Insurance guarantees full protection against risk of death of the assured. In case of death, full sum assured is payable.

Long term saving: Life Insurance encourages long term saving by paying a small premium in easy installments for a long period a handsome saving can be achieved. Liquidity: Loan can be obtained against a policy assured whenever required.
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Tax Profit: Tax relief in income tax and wealth tax availed on the premium paid for Life Insurance.

Need for Life Insurance

Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets. Life insurance is an effective tool that assists you to plan for your future such that you are financially equipped to meet all your goals. 1) Your family's protection - so that your loved ones are secure should an unfortunate event happen to you. Buying Life insurance assures that your family receives a lumpsum that safely tides them over any financial crises that might occur in your absence. 2) Child's education: As parent, your primary responsibility is to ensure your children's future. Our Education Insurance plans ensure your child receives money at key stages of his or her education even in your absence. 3) Savings: Savings plans allow you to steadily save towards a pre-decided goal in a secure manner. These plans provide you with a host of benefits. You can choose the premium, the underlying fund in which you want to invest your money, the ratio between protection and investment as per your requirements. 4) Retirement: Retirement plans help you secure regular income for your retired life. During the Accumulation phase, you systematically save while you are working. When you retire, the Payout stage of the plan begins. You then purchase an annuity, which will serve as a steady stream of income, for the rest of your life. 5) Health: An integral part for financial planning is protecting oneself against any medical emergencies as well. Hence, a very prudent decision would be to choose a combination of plans that look after your finances and offer you a protective health cover to ensure your financial planning is in track despite any major illnesses.

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Asset Protection From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interests of ones family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.

Goal based savings Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Life insurance is the only investment option that offers specific products tailormade for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met.

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The table below gives a general guide to the plans that are appropriate for different life stages. Life Stage Young & Single Primary Need Life Insurance Product Asset creation Wealth creation plans Wealth creation and Asset creation Young & Just married mortgage protection & protection plans Children's Education insurance, education, Married with kids mortgage protection & Asset creation wealth creation plans and protection Planning for Middle aged with Retirement solutions & retirement & grown up kids mortgage protection asset protection Across all life-stages Health plans Health Insurance

Human Life Value 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 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
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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.

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Role of life insurance

Role 1: Life insurance as "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 (read bonuses) 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 non-insurance 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 5-12 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.

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Role 2: Life insurance as "Risk cover" First and foremost, insurance is about risk cover and protection - financial protection, to be more precise - to help outlast life's unpredictable losses. Designed to safeguard against losses suffered on account of any unforeseen event, insurance provides you with that unique sense of security that no other form of investment provides. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise. To provide such protection, insurance firms collect contributions from many people who face the same risk. A loss claim is paid out of the total premium collected by the insurance companies, who act as trustees to the monies. Insurance also provides a safeguard in the case of accidents or a drop in income after retirement. An accident or disability can be devastating, and an insurance policy can lend timely support to the family in such times. It also comes as a great help when you retire, in case no untoward incident happens during the term of the policy. With the entry of private sector players in insurance, you have a wide range of products and services to choose from. Further, many of these can be further customized to fit individual/group specific needs. Considering the amount you have to pay now, it's worth buying some extra sleep. Role 3: Life insurance as "Tax planning" Insurance serves as an excellent tax saving mechanism too. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. Under Section 88 of Income Tax Act 1961, an individual is entitled to a rebate of 20 per cent on the annual premium payable on his/her life and life of his/her children or adult children. The rebate is deductible from tax payable by the individual or a Hindu Undivided Family. This rebate is can be availed upto a maximum of Rs 12,000 on payment of yearly premium of Rs 60,000. By paying Rs 60,000 a year, you can buy anything upwards of Rs 10 lakh in sum assured. (depending upon the age of the insured and term of the policy) This means that you get a Rs 12,000 tax benefit. The rebate is deductible from the tax payable by an individual or a Hindu Undivided Family.

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Major Life Insurance Policies

There are a number of life insurance products which offer protection and also coupled with savings. Term Insurance Policy

A term insurance policy is a pure risk cover for a specified period of time. What this means is that the sum assured is payable only if the policyholder dies within the policy term. For instance, if a person buys Rs 2 lakh policy for 15years, his family is entitled to the money if he dies within that 15-year period. What if he survives the 15-year period? Well, then he is not entitled to any payment; the insurance company keeps the entire premium paid during the 15year period. So, there is no element of savings or investment in such a policy. It is a 100 per cent risk cover. It simply means that a person pays a certain premium to protect his family against his sudden death. He forfeits the amount if he outlives the period of the policy. This explains why the Term Insurance Policy comes at the lowest cost.

Whole Life Policy Cover the insured for life. The insured does not receive money while he is alive; the nominee receives the sum assured plus bonus upon death of the insured.

As the name suggests, a Whole Life Policy is an insurance cover against death, irrespective of when it happens. Under this plan, the policyholder pays regular premiums until his death, following which the money is handed over to his family.

This policy, however, fails to address the additional needs of the insured during his post-retirement years. It doesn't take into account a person's increasing needs either. While the insured buys the policy at a young age, his requirements increase over time. By the time he dies, the value of the sum assured is too low to meet his family's needs. As a result of these drawbacks, insurance firms now offer either a modified Whole Life Policy or combine in with another type of policy

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Endowment Policy Combining risk cover with financial savings, endowment policies is the most popular policies in the world of life insurance.

In an Endowment Policy, the sum assured is payable even if the insured survives the policy term. If the insured dies during the tenure of the policy, the insurance firm has to pay the sum assured just as any other pure risk cover. A pure endowment policy is also a form of financial saving, whereby if the person covered remains alive beyond the tenure of the policy, he gets back the sum assured with some other investment benefits.

In addition to the basic policy, insurers offer various benefits such as double endowment and marriage/ education endowment plans. The cost of such a policy is slightly higher but worth its value. Annuities And Pension An annuity product provides a series of monthly payments on stipulated dates provided that the life assured is alive on the stipulated dates. In an annuity, the insurer agrees to pay the insured a stipulated sum of money periodically. The purpose of an annuity is to protect against risk as well as provide money in the form of pension at regular intervals. Over the years, insurers have added various features to basic insurance policies in order to address specific needs of a cross section of people. There are a variety of life insurance products to suit to the needs of various categories of peoplechildren, youth, women, middle-aged persons, old people; and also rural people, film actors and unorganized labourers. Life insurance products could be purchased from registered life insurers notified by the IRDA. Insurers appoint insurance agents to sell their products. Public who are interested to buy life insurance products should receive proper advice from insurance agents/insurer so that a right product could be chosen to suit particular financial needs. Thus life insurance policies offer protection and security to families and provide happiness to society.
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List of Well-known Life Insurance Companies

HDFC Standard Life Insurance Company Limited Max New York Life Insurance Company Limited ICICI Prudential Life Insurance Company Limited Kotak Mahindra Old Mutual Life Insurance Limited Birla Sun Life Insurance Company Limited Tata AIG Life Insurance Company Limited SBI Life Insurance Company Limited ING Vysya Life Insurance Company Private Limited Bajaj Allianz Life Insurance Company Limited Metlife India Insurance Company Private Limited Aviva Life Insurance Company India Private Limited Sahara India Insurance Company Limited Reliance Life

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M a rk e t s h a re o f va rio u s L ife In s u ra n c e C o m p a n ie s in In d ia a t th e e of FY 2008

0.3 1 .9 2 .4 3 .4 3 .4 1.41 .2 1.8 1 .5 0 .2 L IC IC IC I P R U A LL IA N Z B A JA J S B I LIF E H DFC STANDARD B IR L A S U N L IF E R E L IA N C E L IF E M AX N EW YO RK OM KOTAK A V IV A T A T A A IG M E T L IF E IN G V Y S Y A S H R IR A M LIF E B H A R T I A X A L IF E

4 .1

6.2

4 8 .1

1 0 .3

13 .7

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WHAT IS HEALTH INSURANCE?

Health insurance is a type of insurance whereby the insurer pays the medical costs of the insured if the insured becomes sick due to covered causes, or due to accidents. The insurer may be a private organization or a government agency. Health insurance is one of the most controversial forms of insurance because of the perceived conflict between the need for the insurance company to remain solvent versus the need of its customers to remain healthy, which many view as a basic human right. Health insurance policies insure you against several illnesses and guarantee you stay financially secure should you ever require treatment. They safeguard your peace of mind, eliminate all worries about treatment expenses, and allow you to focus your energy on more important things, like getting better. Let's learn more about the various types of health insurance available, and what the best policy for you might be. In the late 19th century, early health insurance was actually disability insurance, in the sense that it covered only the cost of emergency care for catastrophic injuries that could (and often did) lead to a disability. This artifact of history persisted right up to the start of the 21st century in some jurisdictions, where all laws regulating health insurance actually referred to disability insurance. Patients were expected to pay all other health care costs out of their own pockets, under what is known as the fee-forservice business model. As the Industrial Revolution matured during the middle to late 20th century, traditional disability insurance evolved into modern health insurance as both employers and governments recognized the value of preventive care by encouraging patients to seek regular checkups from primary care physicians. It is usually much cheaper to treat diseases like cancer if they are diagnosed early. Today, health insurance is one of the most regulated forms of insurance business in those countries where it plays a dominant role in financing of health expenditures. Spiralling healthcare costs and rapid technological advances in the medical field have triggered the need for cost-containment by the health insurers without sacrificing the interest of the policyholders or claimants. All these call for intervention by regulatory authorities to protect the consumers.

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However, under the Insurance Regulatory Development Authority (IRDA) Act in India, the powers of licensing and regulating insurance, including health insurance, has been mandated under an act of parliament. Despite such a regulatory authority like the IRDA, very little has been done by the regulatory authority to lay down ground rules for hospitals which run health plans and may be required to register themselves as insurers or hospital managed organisations (HMO). Health insurance will protect you and your dependants against any financial constraints arising on account of a medical emergency. Basically, the client pays a sum of money called the Premium and in turn the Insurance firm would commit to pay a predetermined sum of money to meet the customer's claims.

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Health Insurance policies in India - An Overview

There are several health insurance or medical insurance plans in India. These can be divided into the following categories based on the coverage offered: Hospitalization Plans: These health insurance plans cover your expenses in case you need to be hospitalized. Within this category, products may have different payout structures and limits for various heads of expenditure. The hospitalisation coverage may be reimbursement based plans or fixed benefit plans. These plans aim to cover the more frequent medical expenses. Click to know about our hospitalisation insurance plan (Hospital Care). Critical Illness Plans: These health insurance plans provide you coverage against critical illnesses such as heart attack, organ transplants, stroke, and kidney failure among others. These plans aim to cover infrequent and higher ticket size medical expenses. Click to know about our critical illness plans (Crisis Cover, Health Assure Plus). Specific Conditions Coverage: These plans are designed specifically to offer health insurance against certain complications due to diabetes or cancer. They may also include features such as disease management programs which are specific to the condition covered. Click to know more about our diabetes (Diabetes Care, Diabetes Care Plus, Diabetes Assure) and cancer (Cancer Care, Cancer Care Plus) suite of products.

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5 reasons why health insurance is a must

Indians at greater risk

Reason 1: Lifestyles have changed. Indians today suffer from high levels of stress. Long hours at work, little exercise, disregard for a healthy balanced diet and a consequent dependence on junk food have weakened our immune systems and put us at an increased risk of contracting illnesses. Reason 2: Rare non-communicable diseases are now common. Obesity, high blood pressure, strokes, and heart attacks, which were earlier considered rare, now affect an increasing number of urban Indians.

Shocking Truths

18% of the urban population suffers from hypertension, which leads to renal failure, stroke and cardio-vascular diseases 30% of the population suffers heart attacks before age 40 66% of deaths today are due to cardio-vascular diseases Almost 3.5 million Indians suffer from diabetes Cardio-vascular diseases (CVDs) like heart disease and stroke are the main causes of death and disability

The Cost Factor

Reason 3: Medical care is unbelievably expensive: Medical breakthroughs have resulted in cures for dreaded diseases. These cures, however, are available only to a select few. High operating expensestherapy for breast cancer costs as much as Rs. 2 lakhs for 3 dayshave restricted treatment to the richest. In fact, even among the affluent groups, 20% need to sell their valuable assets so they can accumulate the required amount to meet healthcare costs.

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Reason 4: Indirect costs add to the financial burden: Indirect sources of expensetravel, boarding and lodging, and even temporary loss of income account for as much as 35% of the overall cost of treatment. Most often, we overlook this fact when planning for medical expenses.

Reason 5: Incomplete financial planning: Most of us have insured our home, vehicle, childs education, and even our retirement years. Ironically however, we have not insured our health. We ignore the fact that illnesses strike without warningand seriously impact our finances and eat into our savings in the absence of a good health insurance or medical insurance plan. Over two thirds of all Indians sell assets or dip into existing savings to meet healthcare costs.

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Selecting the Right Plan

Sound health cover planning ensures you receive both, direct medical expenses and indirect expenses, as soon as any medical emergency or hospitalisation event occurs. When investing, choose a health insurance solution that:

Covers a wide spectrum of medical conditions from the most basic to the most critical health complication Includes a combination of reimbursement and fixed benefit plans, which enable you to meet health expenses that include direct and indirect costs An ideal health insurance solution must help cover for both the frequent and low cost medical expenses while also enabling adequate coverage to meet less frequent high cost critical complications as described in the diagram below

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What is General Insurance?

Insurance other than Life Insurance falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc. Insuring anything other than human life is called general insurance. Examples are insuring property like house and belongings against fire and theft or vehicles against accidental damage or theft. Injury due to accident or hospitalisation for illness and surgery can also be insured. Your liabilities to others arising out of the law can also be insured and is compulsory in some cases like motor third party insurance. Non-life insurance companies have products that cover property against Fire and allied perils, flood storm and inundation, earthquake and so on. There are products that cover property against burglary, theft etc. The non-life companies also offer policies covering machinery against breakdown,there are policies that cover the hull of ships and so on. A Marine Cargo policy covers goods in transit including by sea, air and road. Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business. In respect of insurance of property, it is important that the cover is taken for the actual value of the property to avoid being imposed a penalty should there be a claim. Where a property is undervalued for the purposes of insurance, the insured will have to bear a rateable proportion of the loss. For instance if the value of a property is Rs.100 and it is insured for Rs.50/-, in the event of a loss to the extent of say Rs.50/-, the maximum claim amount payable would be Rs.25/- ( 50% of the loss being borne by the insured for underinsuring the property by 50% ). This concept is quite often not understood by most insureds. Personal insurance covers include policies for Accident, Health etc. Products offering Personal Accident cover are benefit policies. Health insurance covers offered by nonlife insurers are mainly hospitalization covers either on reimbursement or cashless basis. The cashless service is offered through Third Party Administrators who have arrangements with various service providers, i.e., hospitals. The Third Party

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Administrators also provide service for reimbursement claims. Sometimes the insurers themselves process reimbursement claims. Accident and health insurance policies are available for individuals as well as groups. A group could be a group of employees of an organization or holders of credit cards or deposit holders in a bank etc. Normally when a group is covered, insurers offer group discounts. Liability insurance covers such as Motor Third Party Liability Insurance, Workmens Compensation Policy etc offer cover against legal liabilities that may arise under the respective statutes Motor Vehicles Act, The Workmens Compensation Act etc. Some of the covers such as the foregoing (Motor Third Party and Workmens Compensation policy ) are compulsory by statute. Liability Insurance not compulsory by statute is also gaining popularity these days. Many industries insure against Public liability. There are liability covers available for Products as well. There are general insurance products that are in the nature of package policies offering a combination of the covers mentioned above. For instance, there are package policies available for householders, shop keepers and also for professionals such as doctors, chartered accountants etc. Apart from offering standard covers, insurers also offer customized or tailor-made ones. Suitable general Insurance covers are necessary for every family. It is important to protect ones property, which one might have acquired from ones hard earned income. A loss or damage to ones property can leave one shattered. Losses created by catastrophes such as the tsunami, earthquakes, cyclones etc have left many homeless and penniless. Such losses can be devastating but insurance could help mitigate them. Property can be covered, so also the people against Personal Accident. A Health Insurance policy can provide financial relief to a person undergoing medical treatment whether due to a disease or an injury. Industries also need to protect themselves by obtaining insurance covers to protect their building, machinery, stocks etc. They need to cover their liabilities as well. Financiers insist on insurance. So, most industries or businesses that are financed by banks and other institutions do obtain covers. But are they obtaining the right covers? And are they insuring adequately are questions that need to be given some thought. Also organizations or industries that are self-financed should ensure that they are protected by insurance.

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Most general insurance covers are annual contracts. However, there are few products that are long-term. It is important for proposers to read and understand the terms and conditions of a policy before they enter into an insurance contract. The proposal form needs to be filled in completely and correctly by a proposer to ensure that the cover is adequate and the right one.

Who should buy general insurance?

Anyone who owns an asset can buy insurance to protect it against losses due to fire or theft and so on. Each one of us can insure our and our dependents health and well being through hospitalisation and personal accident policies. To buy a policy the person should be the one who will bear financial losses if they occur. This is called insurable interest.

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ICICI Prudential Life Insurance

We cover you, at every step in your life

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. 42.72 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 2000 branches (inclusive of 1,074 micro-offices), over 274,500 advisors; and 20 bank assurance 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.

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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 services. 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.

Values:
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 describes 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.

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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 28,000 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.

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About the Promoters

ICICI Bank 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 $1 1 2.6 billion as of June 30 , 2008. ICICI Banks subsidiaries include Indias leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Banks presence currently spans 19 countries, including India. Established in London in 1848, Prudential plc, through its businesses in the UK, Europe, US, Asia and the Middle East, provides retail financial services products and services to more than 21 million customers, policyholder and unit holders and manages over 256 billion of funds worldwide (as of June 30, 2008). In Asia, Prudential is the leading Europe-based life insurer with life 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 34.3 billion funds under management (as of June 30, 2008) and operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates. Prudential Plc Established in London in 1848, Prudential plc, through its businesses in the UK, Europe, US, Asia and the Middle East, provides retail financial services products and services to more than 20 million customers, policyholder and unit holders and manages over 267 billion of funds worldwide (as of December 31, 2007). 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, and Vietnam. Prudential is one of the largest retail fund managers for Asian sourced assets ex-Japan. Its fund management business has expanded into ten markets, comprising of China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

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Fact 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 Life's capital stands at Rs. 42.72 billion (as of June 30, 2008) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the quarter ended June 30, 2008, the company garnered Retail Weighted New Business Premium of Rs. 1,174 crores as against Rs 810 crores for the quarter ended June 30, 2007, thereby posting a growth of 45% and has underwritten over 6 lakh policies over this period. The company has assets held over Rs. 26,900 crore as on June 30, 2008. 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 seven 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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Distribution ICICI Prudential Life has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 2000 branches (includung 1,074 micro-offices) and an advisor base of over 274,500 (as on June 30, 2008). The company has 20 bancassurance partners having tie-ups with ICICI Bank, Bank of India, South Indian Bank, Shamrao Vitthal Co-Op Bank, Jalgaon Peoples Co-op Bank, Ernakulam District Co-op Bank, Idukki District Co-op Bank, Ratnagiri Sindhudurg Gramin Bank, Solapur Gramin Bank, Wainganga Kshetriya Gramin Bank, Aryawart Gramin Bank, Jharkhand Gramin Bank, Narmada Malwa Gramin Bank, Baitarani Gramya Bank, Ratnagiri District Central Co-op Bank, Seva Vikas Coop Bank, Sangli Urban Co-Operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Co-Operative Bank, The Haryana State Co-Operative Bank. Board of Directors The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Mr. K.V. Kamath, Chairman Ms. Chanda Kochhar, Director Mr. Barry Stowe, Director Mr. H.T. Phong, Director Prof. Marti G. Subrahmanyam, Director Mr. Mahesh Prasad Modi, Director

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Ms. Rama Bijapurkar, Director Mr. Keki Dadiseth, Director Ms. Shikha Sharma, Managing Director Mr. N.S. Kannan, Executive Director Mr. Bhargav Dasgupta, Executive Director

Management Team
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, Executive Vice President Customer Service & Technology Dr. Avijit Chatterjee, Appointed Actuary Mr. Puneet Nanda, Executive Vice President & Chief Investment Officer

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Group Companies
ICICI Bank Prudential Plc ICICI Lombard General Insurance Prudential ICICI Mutual Fund

Market Potential
Only 25% of insurable population has been covered till this date Much smaller ratio of the population is adequately covered (less than 23%) Life premiums expected to increase from 6% to 18% of Savings by 2010 gross Domestic

Why Life insurance from ICICI Prudential Life Insurance?

Strong parentage and long term commitment to this business Ability to inject additional equity capital Can support long gestation business Renowned for transparency and high corporate governance standards Track record in personal financial sector Realistic promises and need based selling Customized solutions Commitment to customers Superior service levels Quality of advice

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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. Savings & Wealth Creation Solutions

Save'n'Protect is a traditional endowment savings plan that offers life protection along with adequate returns. CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child's marriage, expenses for a child's higher education or purchase of an asset. It is available for terms of 15 and 20 years. LifeTime Gold is a unit-linked plan that offers customers the flexibility and control to customize the policy to meet the changing needs at different life stages. It offers 7 fund options - Preserver, Protector, Balancer, Flexi Balanced Multiplier, R.I.C.H and Flexi Growth. LifeStage RP is unit linked plan that provides you with an option of lifecyclebased portfolio strategy that continuously re-distributes your money across various asset classes based on your life stage. This will help you achieve the right Asset Allocation to meet your desired financial goals. LifeLink Super is a single premium unit linked insurance plan which combines life insurance cover with the opportunity to stay invested in the stock market. Premier Life Gold is a limited premium paying plan specially structured for long-term wealth creation. InvestShield Life New is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation. InvestShield Cashbak is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options. LifeStage Assure a unit linked insurance plan that provide upto 450 % of first year premium guarantee on maturity, with the additional advantage of a lifecycle based portfolio strategy that allocates the investors money across various asset classes based on his life stage and risk appetite.

Protection Solutions

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LifeGuard is a protection plan, which offers life cover at low cost. It is available in 3 options - level term assurance, level term assurance with return of premium & single premium. HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.

Education Solutions

SmartKid New ULRP provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child's life. SmartKid plans are also available in traditional form.

Retirement Solutions

ForeverLife is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually. LifeTime 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 purchaseprice, 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. LifeStage 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 life stage, eventually providing you with a customized retirement solution. LifeLink 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. PremierLife Pension is a unique and convenient retirement solution with a limited premium paying term of three or five years, to suit professionals and businessmen, especially those who require more flexibility and customization while planning their finances.

Health Solutions

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Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover. 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. Cancer Care Plus: is a wellness plan that includes all the benefits of Cancer Care and also provides an additional benefit of free periodical cancer screenings. Diabetes Care: Diabetes Care is a unique critical illness product specially developed for individuals with Type 2 diabetes and pre-diabetes. It makes payments on diagnosis on any of 6 diabetes related critical illnesses, and also offers a coordinated care approach to managing the condition. Diabetes Care Plus also offers life cover. Diabetes Care Plus: is a unique insurance policy that provides an additional benefit of life cover for Type 2 diabetics and pre-diabetics Hospital Care: is a fixed benefit plan covering various stages of treatment hospitalisation, 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. MediAssure is a health insurance policy that provides assuredinsurability till age 75 years, assured coverage for accepted pre-existing illnesses after 2 years and an assured price for 3 years.

Group Insurance Solutions ICICI Prudential Life also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. Group Gratuity Plan: ICICI Prudential Life's group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner and also avail of tax benefits as applicable to approved gratuity funds. Group Superannuation Plan: ICICI Prudential Life offers a flexible market linked scheme that provides substantial benefits to both employers and employees. Both defined contribution (DC) and defined benefit (DB) schemes are offered to optimise returns for members of the trust and rationalise cost. Members have the option of
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choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. Group Immediate Annuities: ICICI Prudential Life realises the importance of prudent retirement planning. With this in mind, we have developed a suite of annuity products that not only give you an income for life but also provide you options to match your needs. In addition to the annuities offered to existing superannuation customers, we offer immediate annuities to superannuation funds not managed by us. Group Term Plan: ICICI Prudential Life's flexible group term solution helps provide an affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.

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.
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 travelling 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 SmartKid, LifeTime Plus, LifeTime Super and LifeTime Super Pension. 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.
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SERVICE STANDARDS Six sigma

ICICI prudential realized early on that quality could be a significant differential with respect to the competition. Hence it launched a six-sigma initiative as a quality measurement tool to understand and fulfill customer needs, set industry benchmarks and make its operations salable with a focus on customers and costs. Through Six sigma there has been a continuous focus on the customer, which fits in ideally with a focus on the customer, which fits in ideally with ICICI Prudentials customer centric approach.

Investment philosophy
Their investment philosophy aims to proactively achieve superior risk-adjusted returns on our funds under management. The focus is on ensuring long-term safety, stability and profitability of portfolio. The framework to achieve this objective is based on sound investment process and controls coupled with a rigorous and sophisticated risk management strategy. There is clearly articulated asset allocation strategy depending on risk characteristics of corresponding liability. Portfolio management is a function of extensive research and is based on data and reasoning. Debt investments target a judicious mix of credit and interest rate risk. Investments in equity target long term appreciation and follow a value oriented investment style.

Information technology
At ICICI Prudential, the strategic use of technology provides the consumer with value added services. There is a robust system which is employed as the backbone of the company. Initiatives have been taken to provide complete CRM solutions so that the consumer can access complete information on the policies online, from accessing payment details to sending in the premium. Channel partners can manage their entire business on the web through premium alerts, client diaries and premium calculators.

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SWOT ANALYSIS OF THE COMPANY

STRENGTHS
Good brand name
ICICI and Prudential are one of the market leaders in their respective sectors. ICICI safety bonds enjoyed the highest AAA credit rating consistently. While prudential is the fourth largest company in terms of revenue in the world. Moody has rated ICICI Prudential as BA1 above Indian Democracy in terms of investment security.

Handsome deposit with IRDA

ICICI Prudential has a deposit of total 800 crores with IRDA (Insurance Regulatory Development Authority) as against the minimum capital of Rs. 100 Crore. This will assure that the claimants will get their money back on time without any delay.

Latest Technology
All the branches and the offices of the company are connected through Intranet and all the modern means in the technology that helps in giving its customers prompt services. All the information about the company and its products is available on its site(iciciprulife.com) in detail. For recruiting the FAs there is also a provision of Online Training for those FAs who are not able to join the Class room session.

A Complete and Diversified Product Portfolio

The company has a total number of 28 products on offer to the general public, keeping in mind the requirements of the public at different age levels. This is one of the vital strengths of the company.

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 Fast and Accurate Services to the Customer

The mission statement of the company promises to provide superior products and services to the customer by understanding their needs. The use of latest technology helps the company to give to its customer fast and accurate service.

A Highly Trained and Professional Sales Force

All the employees who are associated with ICICI Prudential are highly trained and professional in attitude. This quality staff ensures high quality pre and post sales services.

Leader in terms of Premium Collected

The company was the best in terms of collection of premium. Premiums expected to rise from Rs. 26000 Crores to Rs. 5,12,000 Crores by 2010 and Life premiums expected to increase from 6% to 8% of Gross Domestic Saving by 2010.

Investment in Secured Sector

Of the total premium collected in the last financial year, company has invested 85% of that amount in Government Security and has kept the remaining 15% as a reserve for pre claim settlements.

Branch Network
ICICI Prudential currently has many branches but are expanding this to 150 which is more than any other private life insurance provider in India.

Strong Public and Market acceptance

With its good brand name ICICI Prudentials products enjoy a strong public &market acceptance.

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WEAKNESS
Low Reach
Since the company has started operations in Rajasthan recently its reach is very limited while its rival LIC has reach in almost every part of the Rajasthan. The company will have to think over expanding its operations as soon as possible.

Less Products to Offer

As compared to LIC the company does not have a Joint Life Policy to offer to the public.

Moderate emphasis on Promotional efforts

An extremely moderate emphasis on its promotional effort while its rival Bajaj Allianz Life uses the Mouth Publicity.

Too Much Dependent On Government The main reason behind the general public to buy insurance is the tax benefits that assessee gets. If the government reduces the exemption given under different sections the Life Insurance public may think it otherwise to buy the policy. Though the company aims to change the mindset of the public but still it is the biggest weakness in all-insurance companies.

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OPPURTUNITIES
Majority of the Market still Untapped
Under the survey that was carried out it was discovered that only 25% of the total insurable public has been covered till this date. Thus, its is a great opportunity for the company to capture a good market share.

Capping in RBI bonds

The Reserve Bank of India offers a medium return tax saving bonds. But from 2002 financial year in the recent amendments there has been a capping on maximum amount i.e. 2 lacs that a person can invest. This is good opportunity for the company to sell its investment products that also promises insurance with tax benefits.

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THREATS
Coming Up of many Private Players
After opening of this sector, there are many companies who have aligned with some or the other foreign partner. Many banks are also coming up in this sector with a plan of giving the risk cover to the account holders at a very cheap price.

Government
As discussed earlier, if the government comes up with an amendment where in it plans to reduce the exemption under different sections, the company may find it difficult to sell its products. This as of now is the biggest threat to the company.

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RESEARCH METHODOLOGY

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MEANING OF RESEARCH Research in common parlance refer to a search for knowledge. Research is a systematic and scientific search for pertinent information on a specific topic. It is an art of scientific investigation. SIGNIFICANCE OF RESEARCH Research is a voyage of discovery. It is also said to be the pursuit of truth with the help of study, observation, comparison and experiment. The role of research in several fields of applied economies, whether related to business or to economy as a whole, has greatly influenced in modern times. The increasing complex nature of business and government has focused attention on the use of research in solving problems. RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It may be understood as a science how research is done systematically. It is necessary for a researcher to know not only the research methods/techniques but also the methodology. Researcher not only need to know how to develop certain indices or tests, how to calculate the mean, the mode, the median or the standard devition or chi-square, how to apply particular research techniques, but they also need to know which of these methods of techniques, are relevant and which are not, and what would they mean and indicate and why? The scope of methodology is wider than that of research method. Thus, when we talk of research methodology we not only talk of he research method but also consider the logic behind the method. Now in this particular research I am concerned about the Life Insurance. Life insurance is the only tool to secure our life in future. It also provides a safe guard to the uncertainty of our life. Life insurance is the cheapest investment tool in which we can earn more in a short period of time.

Objectives of the research:(1) To aware about the Life Insurance Company.

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(2) To compare ICICI Prudential with other Life Insurance Companies. Research Design:A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure For achieving these above mentioned objectives the exploratory research method was adopted. Exploratory Research The major emphasis in this type of research is on the discovery of ideas at hand. The major emphasis is on the discovery of ideas and insights. The exploratory study is generally helpful in breaking broad and vague problem into smaller. In the nutshell we can say that exploratory research help in formulating hypothesis for the further research methods of exploratory research. Literature survey Experience survey Analysis of selected cases SAMPLE DESIGN A sample design is a definite plan for obtaining a sample from a given population. It refer to the technique of the procedure the researcher would adopt in selecting items for the sample. Data Type:Primary Data: - Primary Data is the data and the information which is already not available in various sources.

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There are various method of collecting Primary Data. Following methods were used in this research:COLLECTION OF DATA THROUGH QUESTIONAIRE:- The questionnaire was mailed to respondents who were expected to read and understand the questions and write down the reply in the space meant for the purpose in questionnaire itself. COLLECTION OF DATA THROUGH SCHEDULE:- During the research I went to respondents and put the questions from the performa and recorded the replies in the space meant for the purpose. COLLECTION OF DATA THROUGH TELEPHONE INTERVIEWS:-This method of collecting information consist in contacting respondents on telephone it self. Secondary Data: - The Secondary Data is the data and the information which is already not available in various sources in selected form. Some of secondary sources were Various publications of insurance companies. Various publications of IRDA. Annual report of Insurance companies. Quarterly Review of ICICI Prudential. Insurance Journals. Books & Magazine. Newspapers. Websites. Other source of information. Sample size:I have taken 50 Questionnaire for research. Sampling Process:For the fulfillment of the objective I have gone for Random Sampling. Research tool:For the analysis of data I have used some of Pie chart and Column chart.

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In w h ic h s e c t o r p e o p le w a n t to in v e s t th e ir m
30 25 20 % of people 15 10 5 0
Ba nks Go ld Ins ura nce Po st O ffic es Mu tua lF und s Sto ck Ma rke t Re al E sta te Oth ers

25 19 15 4 12 14 6 5

I n v e s tm e n t S e c to r s

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W h ic h o f t h e f o llo w in g in s u r a n c e c o v e r t h c u r r e n t ly h a v e ?
120 100 80 60 40 20 0 L ife H e a lt h V e h ic le H o m e A c c id e n O t h e rs t NO YES

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W h y th e y th in k in s u ra n c e is im p o rta n t?
35 30 25 20 15 10 5 0 29 22 18 13 15 5

% of people

av ing

tio n

en t

rns

Sa v in g

Re gu lar
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R e a so n o f ta kin g in su ra n ce

Ri sk

Ma na ge me nt

Ta xS

Pr ote c

Re ti

Re tu

re m

L ife In s u ra n c e p o lic y w h ic h p e o p le u s u a lly h a v e

1 00 90 80 70 60 50 40 30 20 10 0 E ndow m en t M o ney B ac k C hild C are Term pe ns ion O thers

T y p e o f p o licy

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L ife in s u r a n c e c o m p a n ie s w h ic h p e o p le h a v e h e about
120 100 80 60 40 20 0
LIC ard Lif All e ia n zB aja j ICI CI Sb Pru iL ife Ins ura nc e Ma xN ew Yo rk Re lia n ce L if e Ot he rs

HD F

CS tnd

I n su r a n c e C o m p a n i e s

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Would people like to take Life Insurance policy from any of the private companies?

YES 32%

YES NO
NO 68%

Reasons of not taking policies from Private Life Insurance companies

70 60 50 40 30 20 10 0 May fail at any time Cannot compete with LIC Does not have good plans Will not give good returns Does not have good network Others

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REFERENCES

Web sites
www.iciciprulife.com www.ipruuniverse.com www.icici.com www.irdaindia.org www.indiacore.com www.maxnewyorklife.com

Magazines Insurance Plus Business India Economic Times Material provided by the company Survey

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