icici
TRANSCRIPT
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A COMPARATIVE STUDY OF LIFE
INSURANCE POLICIES PROVIDED BY
“LIFE INSURANCE CORPORATION”
“ICICI PRUDENTIAL LIFE INSURANCE”
BY: GUIDED BY:
VISHAL S. DIPANI Mr. KRUNAL
T.Y.BBA LECTURER
ROLL NO.35
SWAMI SAHAJANAND COLLEGE OF COMMERCE
AND MANAGEMENT
BHAVNAGAR UNIVERSITY
BHAVNAGAR
BATCH 2009-11
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A COMPARATIVE STUDY OF LIFE
INSURANCE POLICIES PROVIDED BY
“LIFE INSURANCE CORPORATION”
“ICICI PRUDENTIAL LIFE INSURANCE”
A PROJECT SUBMITTED
TO
THE BHAVNAGAR UNIVERSITY OF BHAVNAGAR
IN PARTIAL FULFILLMENT FOR THE DEGREE
OF
BACHELOR OF BUSINESS ADMINISTRATION
BY: GUIDED BY:
VISHAL S. DIPANI Mr. KRUNAL
T.Y.BBA LECTURER
ROLL NO.35
SWAMI SAHAJANAND COLLEGE OF COMMERCE
AND MANAGEMENT
BHAVNAGAR UNIVERSITY
BHAVNAGAR
BATCH 2009-11
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CONTENTS
Sr. no. Particulars Page no.
1. Candidate’s Statement 3
2. Preface 5
3. Acknowledgement 7
4. Executive Summary 8
5. Introduction about Industry 19
6. Company Profile 25
7. Research Methodology 28
8. Findings 67
9. Bibliography 71
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1.CANDIDATE’S STATEMENT
I, Vishal Dipani, the student of T.Y.B.B.A. undersigning that the project
work presented in this report is my own work and has carried it out under the co-
operation and guidance of the lecturer Mr.Krunal of Swami Sahajanand
college of commerce and management, Bhavnagar.
I, am thankful to Mr.K.U.PATHAN, the DEO of LIC of Bhavnagar for
helping me in making this project.
Date;
Place: SSCCM,
BHAVNAGAR
----------------
(Mr. Krunal)
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2. PREFACE
There are mainly two main learning methods viz.
(i) Theoretical learning method
(ii) Practical learning method.
From the above two learning methods, the practical learning method is
much effective and efficient and leads to the better understanding of the
subject. Whenever the matter is concerned about management we must go
towards practical aspect because management wants actual prediction and
result that can be possible only through practical aspect.
Being a student of management i.e. BBA and doing specialization in
finance I find the need to understand the market trend closely, so that I can
judge what is actual position of the market in this competitive era. I have to
touch the practical aspect to understand the difference between practical
knowledge and theoretical knowledge.
Today insurance sector is not treated as only an insurance cover but also
for savings and investments. Before, 2000 Indian insurance sector was only
run by public companies, but after 2000, the private companies also entered
in to the insurance market. I have been assigned to do a comparison on
insurance policies provided by public sector and private sector. And I choose
Life Insurance Corporation of India (LIC) as Public sector and ICICI Prudential
Life Insurance as Private sector.
Whatever I have learnt and I will learn in theories and books may or may
not be directly useful to me, but to make that knowledge usable I need to go
through practical aspects, which will be received by me through this project
training.
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This report is true reflection of what I have understood and learnt during
the course of project. This is prepared for the purpose of study for my own
knowledge.
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3. ACKNOWLEDGEMENT
This report is an outcome of the efforts of many guardians who helped me
through out in preparation of my project. I am really thankful to all of them.
First and foremost I am thankful to my trusty Dr. Sureshbhai Sawani, and
our honorable principal Miss. Hetal who gave me such opportunity to learn
something new? Then I would like to express my deep gratitude to lecturer Mr.
Krunal my project guide. During my project work, she has been constant source
of inspiration and encouraged me throughout the project
I am heartily .thankful to Mr. K.U.PATHAN the development officer of LIC
of India, Bhavnagar branch.
Again I am thankful to all my coordinators.
VISHAL
DIPANI
(A Student of
T.Y.B.B.A.)
SSCCM
BHAVNAGAR
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4. EXECUTIVE
SUMMARY
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Sr.no. Particulars Page
no.
A. What is insurance? 10
B. Why should we take insurance? 11
C. Which are the companies
providing Insurance?
12
D. History of Insurance 13
E. Need and advantages of
insurance
15
F. Present and future market senior
of Life Insurance sector in India.
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[A.] WHAT IS INSURANCE?
Life insurance is a guaranty that your family will receive financial support,
even in your absence. Put simply, Life Insurance provides your family with a sum
of money when something happens to you. It thus permanently protects your
family from financial crises.
Life insurance is a contract that pledges payment of an amount to the
person assured (or his nominee) on the happening of the event insured against.
The contract is valid for the payment of the insured amount during:
The date of maturity, or
Specified dates at periodic intervals, or
Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of
premium periodically to the corporation by the policyholder. Life Insurance is a
universally acknowledged to be an institution, which eliminates ‘risk’, substituting
certainty for uncertainty and comes to the timely aid of the family in the
unfortunate event of death of the breadwinner.
By and large, life insurance is civilization’s partial solution to the problems
caused by death. Life Insurance in short, is concerned with two hazards that
stand across the life path of every person:
1. That of dying prematurely, leaving a dependent family to fend for
itself.
2. That of living till old age without visible means of support.
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[B] WHY SHOULD WE TAKE INSURANCE?
Insurance is desired to safeguard one self and one’s family against
possible losses on account to risks. It provides financial compensations for
losses suffered due to the happening of some unforeseen events. By taking life
insurance person can have peace of mind and need not to worry about the
financial consequences in case of any untimely death.
Life Insurance helps you to protect yourself and your family against an
uncertain future. While thinking about the future, some questioned that need to
be answered are;
1. In case of one’s death, will his family have enough money to meet their
standard of living?
2. When one gets old, will he have enough money to live a comfortable retired
life?
3. What is the value of his assets today?
4. What are his liabilities today and how much will they amount to in future?
5. How much insurance does one need?
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[c]. WHICH ARE THE COMPANIES
PROVIDING INSURANCE?
In India prior to liberalization, insurance protection was made available
through public sector insurance companies viz; Life Insurance Corporation of
India and subsidiaries of General Insurance Corporation of India.
During the reform process and passing of Insurance Regulatory
Development Act (IRDA) by the Parliament in 1999, the Indian Insurance sector
was opened for private company.
Today at present the following Private Companies are providing Life
Insurance to the Indian people:
1. BAJAJ ALLIANZ LIFE INSURANCE
2. ICICI PRUDENTIAL LIFE INSURANCE
3. RELIANCE LIFE INSURANCE
4. HDFC STANDARD LIFE INSURANCE
5. MET LIFE INSURANCE
6. SAHARA INDIA LIFE INSURANCE
7. AVIVA LIFE INSURANCE
8. TATA AIG LIFE INSURANCE
9. ING VYSYA LIFE INSURANCE
10.BIRLA LIFE INSURANCE
11.MAX NEW YORK LIFE INSURANCE
12.SBI LIFE INSURANCE
13.KOTAK MAHINDRA INSURANCE
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[D] HISTORY OF INSURANCE
The story of insurance is probably as old as the story of mankind. The
same instinct that prompts modern businessmen today to secure themselves
against loss and disaster existed in primitive men also. They too sought to avert
the evil consequences of fire and flood and loss of life and were willing to make
some sort of sacrifice in order to achieve security. Though the concept of
insurance is largely a development of the recent past, particularly after the
industrial era – past few centuries - yet its beginnings date back almost 6000
years.
Life Insurance in its modern form came to India from England in the year
1818. Oriental Life Insurance Company started by Europeans in Calcutta was the
first life insurance company on Indian Soil. All the insurance companies
established during that period were brought up with the purpose of looking after
the needs of European community and Indian natives were not being insured by
these companies.
However, later with the efforts of eminent people like Babu Muttylal Seal,
the foreign life insurance companies started insuring Indian lives. But Indian lives
were being treated as sub-standard lives and heavy extra premiums were being
charged on them. Bombay Mutual Life Assurance Society heralded the birth of
first Indian life insurance company in the year 1870, and covered Indian lives at
normal rates. Starting as Indian enterprise with highly patriotic motives, insurance
companies came into existence to various sectors of society. Bharat Insurance
Company {1896} was also one of such companies inspired by nationalism. The
swadeshi movement of 1905-1907 gave rise to more insurance companies. The
United India in Madras, National Indian and National insurance in Calcutta and
the Co-operative Assurance at Lahore were established in 1906. In 1907,
Hindustan Co-operative Insurance Company took its birth in one of the rooms of
the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The
Indian Mercantile, General Assurance and Swadeshi Life {later Bombay Life}
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were some of the companies established during the same period. Prior to 1912
India had no legislation to regulate insurance business. In the year 1912, the Life
Insurance Companies Act, 1912 made it necessary that the premium rate tables
and periodical valuations of companies should be certified by an actuary. But the
Act discriminated between foreign and Indian companies on many accounts,
putting the Indian companies at a disadvantage.
The first two decades of the twentieth century saw lot of growth in
insurance business. From 44 companies with total business-in-force as Rs.22.44
core, it rose to 176 companies with total business-in-force as Rs.298 core in
1938. During the mushrooming of insurance companies many financially unsound
concerns were also floated which failed miserably. The insurance Act 1938 was
the first legislation governing not only life insurance but also non-life insurance to
provide strict state control over insurance business. The demand for
nationalization o life insurance industry was made repeatedly in the past but it
gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938
was introduced in the Legislative Assembly. However, it was much later on the
19th of January, 1956, that life insurance in India was nationalized. About 154
Indian insurance companies, 16 non-Indian companies and 75 provident were
operating India at the time of nationalization. Nationalization was accomplished in
two stages; initially the management of the companies was taken over by means
of an Ordinance, and later, the ownership too by means of a comprehensive bill.
The parliament of India passed the Life Insurance Corporation Act on the 19th of
June 1956, and the Life Insurance Corporation of India was created on 1st
September, 1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all insurable
persons in the country, providing them adequate financial cover at a reasonable
cost.
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[E]. NEED & ADVANTAGES OF
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
you dual needs - saving for life’s important goals, and protecting your assets.
Benefits of Life Insurance In Detail:
1.Assets 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 one’s
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.
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2. 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 tailor-made for different life stages. It thus ensures that the
benefits offered to the customer reflect the needs of the customer at the
particular life stage, and hence ensures that the financial goals of that life
stage are met.
The table below gives a general guide to the plans that are
appropriate for different life stages,
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Life Stage Primary Need Life Insurance
Product
Young & Single Asset creation Wealth creation plans
Young & Just married Asset creation & protection Wealth creation and
mortgage protection plans
Married with kids Children’s education, Asset creation
and protection
Education insurance,
mortgage protection & wealth
creation plans
Middle aged with grown up kids Planning for retirement & asset
protection
Retirement solutions &
mortgage protection
Across all life-stages Health plans Health Insurance.
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[F]. PRESENT & FUTURE MARKET
SENIOR OF LIFE INSURANCE SECTOR
IN INDIA
Valued @ $10.2 billion, the Indian insurance industry is on an
expansion stage with the largest number of life insurance policies in
force in the world, India’s insurance sector accounted for 4.8 % of GDP
in 2006-07, up from 3.14 % in 2005-06. The industry recorded a 19.9 %
growth in premium in dollar terms in 2006-07, compared to the world
market growth rate of 2.9 %. In fact, the growth in premium has pushed
India being the 15th largest market from 19th in 2005.
Market penetration tends s to rise as incomes increase, particular
in life insurance. India, with its huge middle-class house-holds base and
a galloping economy, has exhibition a huge potential for this sector.
Current estimates say that for every 1% increase in our GDP, insurance
premium increase by at least 4 %.
The domestic insurance industry in India is estimated to reach
about $60.5 billion by 2010, of which $35 billion will come from rural and
semi-rural areas, while life insurance is expected to grow to $35 billion.
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INTRODUCTION
ABOUT
INDUSTRY
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[A]. INTRODUCTION OF LIC
{PUBLIC COMPANY}
LIC was formed in 1st Sep, 1956 with a capital contribution of
Rs.5 cores from the Government of India. Its main duty was to spread
the message of life insurance in the country and mobilize people to save
for nation building activities.
Overtimes LIC become very popular in India. The central office of
LIC is in Mumbai and it has 7 zonal offices at Mumbai, Delhi, Kolkata,
Chennai, Hyderabad, Kanpur and Bhopal. There are over 100 divisional
offices and 2500 branch offices. There are more than 5.59 lakhs active
agents of LIC. It also has office abroad at Fiji, Mauritius, and the United
Kingdom for business transactions. LIC has entered into joint ventures
abroad with several companies in the field of insurance. LIC has enjoyed
monopoly of life insurance business till near the end of 2000. By enacting
the IRDA 2000, the government of India effectively ended LIC’S
monopoly and opened the doors for private insurance companies.
LIC has a variety of plans which helps all categories of people and
their diverse need. The fund generated through the premium of policy
holders are divested to a number of socio-economic project in the
country. The LIC insurance plan is categories as: Individual insurance
plan, Group insurance schemes, Pension plan, and Capital market linked
plan.
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Objectives:
Spread Life Insurance widely and in particular to the rural areas and
to the socially and economically backward classes with a view to
reaching all insurable persons in the country and providing them
adequate financial cover against death at a reasonable cost.
Maximize mobilization of people’s savings by making insurance-linked
savings adequately
attractive.
Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the best
advantage of the investors as well as the community as a whole, keeping in
vies national priorities and obligations of attractive return.
Conduct business with utmost economy and with the full realization that the
moneys belong to the policy holders.
Act as trustees of the insured public in their individual and collective
capacities.
Meet the various life insurance needs of the community that would arise in the
changing social and economic environment.
Involve all people working in the corporation to the best of their capability in
furthering the interests of the insured public by providing efficient service with
courtesy.
Promote amongst all agents and employees of the corporation a sense of
participation, pride and job satisfaction through discharge of their duties with
dedication towards achievement of Corporate Objective.
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[B]. INTRODUCTION OF ICICI
PRUDENTIAL LIFE INSURANCE
{PRIVATE COMPANY}
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. 29.32 million, with ICICI
Bank holding a stake of 74% and prudential plc holding 26%.
ICICI Prudential Life Insurance began their operations in December 2000
after receiving approval from Insurance Regulator y Development Authority
{IRDA}. Today, our nation-wide team comprises of over735 offices, over 243,000
advisors; and 22 banc assurance 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 India’s Most Trusted private Life
Insurer, by The Economic Times – AC Nielsen ORG Marg survey of ‘Most
Trusted Brands’. As ICICI prudential Life insurance grows their 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 be the dominant Life, Health and pensions player built on trust by world-
class people 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 policyholder.
Providing and 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 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 and 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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Values:
Every member of the ICICI Prudential team is committed to 5 cores values:
Integrity, Customer First, Boundary less, Ownership and Passion. These values
shine forth in all we do, and have become the keystone of our success.
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6. COMPANY
PROFILE
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[A]. COMPANY PROFILE OF LIC
{PUBLIC COMPANY}
Name : Life Insurance Corporation of India
Establishment Year : 1st September 1956.
Registered Office : LIC of India
Western Zonal Office
Yogakshema, Jeevan Bima Marg,
Mumbai – 400021
Web Site : www.licindia.com
Company Form : Public Company
Punch line : Zindgi Ke Sath Bhi,
Zindgi Ke Bad Bhi.
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{B}. COMPANY PROFILE OF ICICI PRUDENTIAL
LIFE INSURANCE (PRIVATE COMPANY)
Name : ICICI Prudential Life Insurance Company
Limited.
Establishment Year : 24th Nov, 2000.
Registered Office : ICICI Prudential Life Insurance Company
Limited.
ICICI Prufile Towers, 1089,
Appasaheb Marathe Marge,
Prabhadevi,
Mumbai-400025.
Web Site : www.iciciprulife.com
Company Form : Private Company.
Punch Line : Jeetye Raho
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7. RESEARCH
METHODOLOGY
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SR. NO PARTICULARS Page No.
A Objective of Research 30
B Source of Research 30
C Research Instrument 31
D Limitation of Research 31
E Data Analysis 32
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{A}. OBJECTIVES OF RESEARCH
The main objective of doing this research is to know whether people prefer
private or public company at the time of taking insurance. There are some other
objectives of this research which are as follows:
To know about insurance.
To know about a comparative performance of public and private life
insurance.
To know about various policies provided by public and private insurance
companies.
{B}. SOURCE OF RESEARCH.
The data has been collected from both primary as well as secondary sources.
The primary data is a data basically collected for the purpose of concerned
or particular study. In case of this project primary data of the study has
been collected by interaction with the officers.
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The secondary data is one which already exists or is someone for some
other purpose of study. In case of this project the secondary data has
been collected through web sites, office records in banks, magazines,
books, newspapers, etc.
{C}. RESEARCH INSTRUMENT
There are some methodologies through which we can do the research and
for that there are some instrument available. As my research is more concerned
with public opinion, I have chosen questionnaires as my instrument. Through
asking question I can easily judge the people views and also it take very less time
of the people. I have fill up 50 questionnaires in Bhavnagar area and then I have
given conclusion to my research.
[D]. LIMITATIONS OF RESEARCH
I have research my project in very selective area if, we go for mass area
than the result may be differs.
Some people are not more aware about the public and private insurance
market when, such people fill up the format that time there is possibility of wrong
conclusion.
Some people are not interested in answering the question at that time the
result may be differs
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[E]. DATA ANALYSIS
Potential Market Position of Both the Companies
Claim settled during 1.4.2008- 31.3.2009
(As per IRDA annual report)
CLAIM
PENDING
AT THE
START OF
YEAR
CLAIM
INTIMATED
DURING
THE YEAR
TOTAL
CLAIMS
CLAIM
SETTLED
% OF
CLAIM
SETTLED
LIC
ICICI
PRUDENTIAL
LIFE
11550
365
579547
10378
591097
10743
564389
9298
95.48%
86.55%
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PROFIT AND LOSS SECENARIO
AS PER IRDA ANNUAL REPORT
PROFIT AFTER
TAX AS ON
31.3.2008
PROFIT AFTER
TAX AS ON
31.3.2009
ACCUMULATED
LOSS AS ON
31.3.2009
LIC
ICICI
PRUDENTIAL
LIFE
Rs.84,463 LAKH
Rs.1,39,506
LAKH
Rs. 95,735 LAKH
Rs.77,970 LAKH
NIL
Rs.3,77,646 LAKH
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After the entry of private players in the insurance market in 2000, India’s
insurance industry has moved into exiting and thrilling times. The insurance
sector in the country now accounts for 10-15% of India’s total financial sector.
The opening up of sector has lured many foreign players into the market.
By referring above chart it can be said that because of stiff competition LIC
loses its market share from the total market. In 2002, the private sector
accounted for a very small 1.4% share, which has grown to a huge 25.8% in
2007; and on the other hand the share of LIC has shrunk from 98.6% in 2002 to
74.2% in 2007.
But, if we compare LIC with ICICI Prudential Life Insurance than in 2006
the share of LIC is 73.5% and the share of ICICI prudential Life Insurance is 6.7%
while , in FY’07 the share of LIC increase by 0.7% and the share ICICI Prudential
Life Insurance increase by 0.5% that means both are growing at about the same
level.
At the same time if we compare ICICI Prudential Life Insurance with other
private companies than the market share of ICICI Prudential Life Insurance is
highest and so it is recognize as India’s no.1 private life insurance company.
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PRODUCTS OFFERED BY BOTH THE
COMPANIES
LIFE INSURANCE
CORPORATION
LIC
ICICI PRUDENTIAL LIFE
INSURANCE
ICICI
Children’s plans
1. Jeevan Anurag
2. CDA Endowment Vesting at 21
&18
3. Jeevan Kishor
4. Child Carrier plan
5. Komal Jeevan Plan
6. Marriage Endowment or
Education Annuity plans.
7. Jeevan Chhaya
1. Smart Kid Regular Premium
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8. Children Future plan
Retirement Plans
1. Jeevan Nidhi
2. Jeevan Akshay
3. New Jeevan Suraksha
4. New Jeevan Dhara
1. Forever Life
2. Immediate Annuity
Money Back Plans
1. Money Back Policy- 20 year &
25 year.
2. Jeevan Surbhi 15 year, 20 year
& 25 year
.
3. Bima Bachat
4. New Bima Gold
1. Save ‘n’ protect
2. Cash Bank
Term Assurance Plans
1. Two year Temporary Assurance
Policy
2. The Convertible term assurance
1. Life Guard
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policy
3. Anmol Jeevan-1
4. Amulya jeevan
2. Pure Protect
3. Home Assurance
4. I Protect
Whole life
1. Whole life policy
2. Whole life Limited Payment
3. Whole life Single payement
4. Jeevan Anand
5. Jeevan Tarang
1. Whole Life
2. Guaranteed Savings Insurance
Plan
Endowment Plans
1. Endowment Assurance policy
2. Endowment Assurance policy-
Limited payment
3. Jeevan Mitra (Double & Triple
Cover Endowment)
4. Jeevan Anand
5. New Janaraksha Plan
1. Life Time Premier
2. Pinnacle – 2
3. Life Stage Wealth
4. Life Link Wealth Sp
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6. Jeevan Amrit
Special Plans
1. Jeevan Bharti -1
2. Jeevan Adhar
3. Jeevan Vishwas
4. Jeevan Sath
5. Jeevan Sathi Plus
1. Health Saver
2. Medi Assure
3. Hospital Care – 2
4. Cricis Cover
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LIC
Children Carrier Plan
ICICI’s Children Carrier Plan is specially
designed to meet the increasing
educational and other needs of growing
children. It provides the risk cover on the
life of child not only during the policy term
but also during the extended term (i.e. 7
years after the expiry of policy term). A
number of Survival benefits are payable
on surviving by the life assured to the end
of the specified duration.
Options:
A person may choose Sum Assured
(S.A.), Maturity Age, Policy Term, Mode
of Premium payment and Premium
Waiver Benefit.
Payment of Premiums:
A person may pay the premiums regularly
at yearly, half-yearly, quarterly or through
ICICI PRUDENTIAL LIFE INSURANCE
Smart Kid
ICICI Prudential’s Smart kid is a fixed-
term insurance plan that provides you
with funds at regular intervals. The plan
also keeps the family financially secure
should an untoward event ever occur.
Smart Kid New Unit linked Regular
Premium is a unit-linked plan, which
enables you and your child to
accumulate wealth by virtue of
performance of the under lying market-
linked instrument
Eligibility Condition and Other
Restrictions :
Minimum/Maximum Entry Age{Parent}:
20-60 Years
Minimum/Maximum Entry Age {Child}:
0-15 years
Maximum Age At Maturity {Child}:18-25
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Salary deductions over the term of policy.
Premiums may be paid either for 6 years
or up to 5 years before the policy term.
Death Benefit:
On death (after the Date of
Commencement of Risk) -
(i) If death occurs within the period from
date of commencement of risk to 5 years
before the date of expiry of policy term:
Sum Assured along with Vested Simple
Reversionary Bonuses and Final
(Additional) bonus (if any) is payable.
(ii) If death occurs within 5 years before
the date of expiry of policy term: Sum
Assured along with Final (Additional)
bonus (if any) is payable.
On death during the Extended Term -
Sum Assured is payable.
On death (before the Date of
Commencement of Risk) - All the
premiums paid (excluding extra premium
and premium for premium waiver benefit,
if any,) along with interest of 3% p.a
compounding yearly shall be payable.
AutoCover:
If after at least two full years’ premiums
Years
Minimum/Maximum Term: 10-25 years
Premium Payable Frequency: Yearly,
Half-Yearly, Monthly.
Minimum Premium: 10,000/-
Minimum Sum Assured: Annual
Premium And Term/2 Subject To A
Minimum of Rs 1, 00,000.
Features and Benefits:
Regular payouts: As the child
approaches key educational milestones
such as 12th standard or graduation
exams, he or she will receive regular
payouts, guaranteeing he or she
continues to study, no- matter what the
circumstances.
Death Benefit: Your child will receive
the sum assured immediately, should
something happen to you. ICICI
Prudential will pay the remaining
premiums, ensuring your child continues
to receive policy benefits, as always.
Income Benefit Rider: You can choose
to add the benefits of this rider to your
child’s education plan. Should you
depart before your son’s or daughter’s
education is complete, your child will
receive 10% of Rider Sum Assured, for
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have been paid and any subsequent
premium be not duly paid, full death cover
shall continue for a period of two years
from the due date of the First Unpaid
Premium (FUP). During this Auto Cover
Period, one or more installments of
premiums with interest can be paid
without submission of evidence of health.
On payment of one or more of the arrears
of installment premiums with interest, the
Auto Cover Period of 2 years shall be
extended from the due date of new FUP.
Premium Waiver Benefit shall remain in
force during the Auto Cover period.
Premium Waiver Benefit:
The proposer can opt for this benefit if
aged between 18 and 55 and is medically
fit. It provides waiver of premiums on
death of proposer. Further the benefit
shall remain in force during the Auto
cover period. Any premiums that have
fallen due and not paid during the Auto
Cover period shall also be waived. This
benefit shall not be available in case of
suicide by the proposer within one year of
policy. Further, revival of the policy shall
be subject to medical fitness of the
proposer.
the balance term of the policy.
Add-on riders: ‘Accidental Death and
Disability Rider ‘ and ‘Waiver of
Premium Rider’ ensure your child stays
doubly protected, at all times. You can
choose to add these to your child’s
education policy.
Tax Benefits: Premiums you pay for a
smart Kid policy are eligible for tax
savings [u/s 80{C}]. Maturity and death
benefits are eligible for tax exemption
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Eligibility Conditions and Other
Restrictions:
Minimum entry age : 0 years (last
birthday)
Maximum Entry age : 12 years(last
birthday)
Minimum maturity age : 23 years (last
birthday)
Maximum maturity age :27 years (last
birthday)
Minimum sum assured : Rs.1,00,000
Maximum sum assured : Rs.10,00,000
Policy term :11 to 27 years
Premium Paying Term: 6 years and
Policy Term less 5 years.
--------------------------------------------------------
Jeevan Nidhi
LIC’s JEEVAN NIDHI is a with profits
Deferred Annuity {pension} plan. On
survival of the policy holder beyond term
of the policy the accumulated amount {i.e.
Sum Assured + Guaranteed Additions +
Bonuses} is uses to generate a pension
{annuity} for the policyholder. The paln
also provides a risk cover during the
deferment period The USP of the plan
\
Forever Life
ICICI Prudential's ForeverLife is a
complete insurance cum pension plan
that performs two crucial roles: it acts as
a protective cover while you earn for
your retirement, and provides you with
regular pensions once you retire.
Features and benefits of ForeverLife
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being the pension can commence at 40
years. The premiums paid are exempt
under section 80ccc of Income Tax Act.
This is a with-profits pension plan which
provides for death cover during the
deferment period and on survival to the
date of vesting, the maturity proceeds are
compulsorily to be used for purchase of
annuity.
Eligibility Conditions and other
Restrictions:
Minimum age at entry: 18 years
{completed}
Maximum age at entry: 50 years
Maximum age at vesting: 60 years
Policy terms: 6to 35 years under Single
Premium mode and 10 to 35 years under
regular premium mode
Minimum Sum Assured: Rs.1,00,000/-
Maximum Sum Assured: An amount
equal to the sum assured under the Basic
plan subject to a limit of Rs.25,00,000/-
taking all Term Assurance Rider Sum
Assured under all policies of a life
assured.
ForeverLife is a regular premium
deferred pension plan, which provides
you with the security of a life cover
during your working years (the
Accumulation phase of the policy) and
regular pensions once you retire
(Annuity phase of the policy).
Premiums: Choose the Sum Assured
and Vesting Age (age at which one
wants to start receiving his pensions).
Depending on these as well as his age
at entry, his annual premium is
determined.
Pre-decided vesting age: Choose the
date from which one want to receive
pensions.
Life cover: Enjoy the protective benefits
of a life cover during the term of your
policy i.e. the time from when one
purchase the policy to the time he
retires. The life cover amounts to the
Sum Assured along with guaranteed
additions and vested bonuses.
Annuities: Receive the Sum Assured
along with guaranteed additions and
vested bonuses when one retire.
Choose how he wants to receive his
annuities.
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Multiples of Sum Assured: Rs.25,000/-
Features and Benefits:
Guaranteed Additions:
Guaranteed Additions @ Rs.50/- per
thousand sum assured for each
completed year, for the first five years.
Participation in profits:
The policy shall participate in profits of the
corporation from the 6th year onwards and
shall be entitled to receive bonuses
declared as per the experience of the
corporation.
Loan Assignment:
No Loan/Assignment will be available by
the corporation to the policy holders
under this plan.
Premiums:
Premiums are payable yearly, half-yearly,
quarterly, monthly or through salary
deduction, as opted by you, throughout
the term of the policy or till earlier death.
Alternatively, the premium may be paid in
one lump sum {single premium}.
Tax Benefits:
Tax relief under Section 80CCC{1} is
5 options of annuity payouts: Choose
to receive his annuity out of five annuity
options that come with this retirement
plan.
Guaranteed additions: Receive
additional sums at the rate of 3.5% per
annum compounded on the Sum
Assured, for the first four years.
Vested bonuses: Receive these from
the 5th year onwards, as an annual
compounded percentage of the Sum
Assured.
Death benefit: Should something
happen to you, your nominee will
receive the Sum Assured along with
guaranteed additions and vested
bonuses.
Tax benefits: Enjoy tax savings on the
premiums you pay (under u/s 80 CCC)
and tax exemptions on death benefits
[under u/s 10 (10 D)].
Forever Life at a glance
Minimum Sum Assured : RS.50000
Minimum Premium : RS.
6000
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available on premiums paid under this
policy.
Bonuses after the first 5 years:
This is a with-profit plan and participates
in the profits of the corporation’s life
insurance business after 5 years. It gets a
share of the profits in the form of
bonuses. Simple Reversionary Bonuses
are declared per thousand sum assured
annually at the end of each financial
year. Once declared, they form part of the
guaranteed benefits of the plan. A Final
{Additional} Bonus may also be payable
provided a policy has run for certain
minimum period.
Death Benefit:
The sum assured along with accrued
guaranteed additions and vested simple
reversionary bonuses and Final
{Additional} Bonus, if any, is payable in a
lump sum on death of the life assured
during the deferment period of the policy.
Benefit on Vesting:
On the date of vesting you can en cash
up to a maximum of 1/3rd of the amount
consisting of the Sum Assured along with
accrued guaranteed additions, vested
simple reversionary bonuses and Final
{Additional} Bonus, if any as a tax-free
lump sum. The balance amount shall be
Minimum/ maximum entry age : 20-60
years
Minimum/Maximum Term :5-30
years
Minimum/Maximum vesting age:50-70
years
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compulsorily converted into an annuity at
the option and the rated applicable at the
time of vesting of the annuity.
Supplementary/Extra Benefits:
These are the optional benefits that can
be added to your basic plan for extra
protection/option. An additional premium
Is required to be paid for these benefits.
Bima Bachat
LIC’s Bima Bachat is a money-back
policy which offers financial security and
assurance to the policy holder and his
family. Bima Bachat requires the policy
holder to pay only one premium. The
amount paid for the premium depends on
the duration of the policy taken and life
insurance is available till the date of
maturity.
For a term 12 years: The policy holder will
receive 15% of the sum assured at the
end of every 3rd, 6th and 9th policy year.
Save’n’ Protect
It is a fixed term policy of ICICI that
combines saving with life cover. In this
plan, a person pay premium regularly
during the term,. On death of life
assured up to age 7 year, the basic
premium paid will be returned without
interest.
On the death of the life assured after
age 7 age 7 years, the beneficiary will
get the sum assured, the guaranteed
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For a term 15 years: The policy holder will
receive15% of the sum assured at the
end of every 3rd, 6th, 9th and 12th policy
year.
For a term of 9 years: The policy holder
will receive 15% of the sum assured at
the end of every 3rd and 6th policy year
What additional benefits will one get
upon maturity?
If the policy holder outlives the duration of
the policy, at the time of maturity, a single
premium payment (excluding extra
premium) is made along with loyalty
additions, if any.
How much insurance will policy holder
get?
The policy holder is insured for an amount
equal to the sum assured.
What about the installment received
already?
The insurance cover is irrespective of the
addition at 3.5% compounded annum
for the first 4 years and the vested
bonuses.
Once the policy matures, i.e. at the
policy term a person can get the full
sum assured and guaranteed addition at
3.5% compounded annually for the first
4 year as well the vested bonus.
Extended life cover:
This provides a person with features
which gives you additional extended
term insurance cover for 5 years after
maturity date of policy.
Critical illness rider:
This rider provides protection again a
critical illness.
Eligibility Conditions and Other
Restrictions:
Maximum Age: 60 years
Maximum Age: 10 years
Premium Payable: 6000.
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installments received.
When will one be eligible for the
guaranteed surrender value?
The guaranteed surrender value is
available only after completion of at least
one policy year. This value is equal to 90
% of the single premium paid (excluding
extra premium).
What other benefits does this
insurance cover offer?
Bima Bachat is the only money-back
policy that offers a loan facility. The rate
of interest for this will be determined from
time to time by the corporation. Presently
the rate of interest is 9% p.a. payable
half-yearly.
It also offers other benefits like the 15 day
cooling off period, grace period and
revival.
Who is eligible for the policy? Are
there other conditions or restrictions?
The following are the requirements that
one needs to be aware of before applying
for this
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policy:
· The person applying for the policy
should have completed 15 years and
should not be older than 66 years.
· The policy will mature when the person
is 75 years old.
· There is a choice of three terms to
choose from (9, 12 and 15 years) for the
policy depending on the age and
requirement of the applicant.
· The minimum sum that needs to be
assured is Rs 20,000/- and there is no
limit on the amount that can be assured.
· It is important to note that the sum
assured should be in multiples of Rs
5000/- only.
· The policy requires the holder to pay a
single premium.
The convertible term
Assurance Policy:
LIC’s this plan of assurance is designed
to meet the needs of those who are
initially unable to pay the larger premium
required for a whole Life or Endowment
assurance policy, but hope to be able to
pay for such a policy in the near future.
Life Guard
Under this plan of ICICI, in case of the
life assured during the term, the sum
assured will be paid to the beneficiary.
There are no maturity benefits. Hence
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This plan would be found useful also in
cases where it is desired to leave the final
decision as to the plan to a later date
when, perhaps a better choice could be
made.
Policy holders gets an option of
converting an policy into endowment
assurance or limited payment whole life
assurance.
Suitable For:
For all people with earned income under
category I and unearned incomes under
category II, basically standard and sub-
standard lives attracting EMR classes I
and II.
Death Benefit:
The sum assured is payable only in the
event of death of the life assured before
the expiry of the specified term.
on survival till, the policy will terminate.
In this policy a person needed to pay
the regular premium, for the term
chosen and the person will be provided
with life cover equal to the sum assured.
Eligibility Conditions and Other
Restrictions:
Minimum term: 5 years
Maximum term: 30 years
Minimum premium payable: 24000/-
Features and benefit:
Accident and disability benefit rider:
On death of the life assured due to an
accident, the beneficiary gets the
additional sum assured under the rider.
In case an accident related an accident
related death occurs while, travelling by
mass surface public transport, the
beneficiary gets twice the sum assured
under the rider.
In the event of total and permanent
disability, 10% of the rider sum assured
is paid out every year, for 10 years.
Waiver of premium:
In case of total permanent disability due
to an accident, this rider would waive
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Endowment assurance
policy :
LIC’s this policy not only makes
provisions for the family of the life
assured in event of his early death but
also assures a lump sum at a desired
age. The lump sum can be reinvested to
provide an annuity during the remainder
of his life or in any other way considered
suitable at that time.
Premiums are usually payable for the
selected term of years or until death if it
occurs during the term period.
Suitable For:
Being an endowment assurance policy,
this plan is apt for people of all ages and
social groups who wish to protect their
families from a financial setback that may
occur owing to their demise.
The amount assured if not paid by reason
of his death earlier will payable at the end
of the endowment term where it can be
invested in an annuity provision for the
rest of the policyholder’s life or in any
future premium till maturity.
Pinnacle - 2
ICICI Pru Pinnacle II- a unit linked
insurance plan.
ICICI Pru Pinnacle II is a unit linked
insurance plan that offers protection for
family through its life insurance cover.
It also gives you the advantage of
varying exposure to equities with
downside protection, so that ones
investments are protected in financially
volatile times.
It offers a limited premium payment term
while allowing one to enjoy insurance
protection for a longer period.
Features and benefits of ICICI Pru
Pinnacle II
1. Guaranteed NAV: Get the benefit of
the highest NAV recorded on a daily
basis, in the first 7 years of the Pinnacle
II Fund, at maturity.
In this product, we guarantee the
highest Net Asset Value (NAV) recorded
on a daily basis, in the first 7 years of
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other way he may think most suitable at
that time.
Features and benefits:
Moderate premiums
High bonus
High liquidity
Savings oriented.
Disability Benefit:
In case policy holder becomes totally and
permanently disabled due to an accident
before reaching the age of 70 and the
policy is in full force, he will not be
required to pay further premiums, {the
Disability Benefit is available in respect of
the first Rs. 20,000 sum assured on any
one life and the policy will continue to be
in force.
Accident Benefit:
By paying a small extra premium of Rs.1
per Rs.1000/- sum assured per year he or
his family are entitled to the following
benefits on death or permanent disability
caused by accident. Even students above
the age of 18 years can avail of this
benefit.
launch of the Pinnacle II Fund, subject
to a minimum of Rs.10. The guarantee
will be applicable only at maturity. The
period of 7 years starts from the date of
launch of Pinnacle II Fund and will end
on the completion of 7 years (from
26/10/2010 to 26/10/2017).
2. Limited premium payment term:
Pay premiums for only five policy years.
3. Death benefit: In the unfortunate
event of death of the Life Assured, the
nominee will receive Sum Assured plus
Fund Value, subject to Minimum Death
Benefit.
4. Partial withdrawals: Ensures
liquidity from the 6th policy year
onwards.
5. Tax benefits: Avail tax benefits on
the premiums paid and benefits
received under the policy, as per the
prevailing Income Tax laws
6. Loyalty Additions: Added to the
fund at maturity. Calculation of the fund
value for Loyalty Addition will be based
on the prevailing NAV and not on the
Guaranteed NAV
ICICI Pru Pinnacle II at a glance
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Premium Stoppage:
If payment of premiums ceases after at
least THREE years premiums have been
paid, a free paid-up policy for a reduced
sum assured will be automatically
secured provided the reduced sum
assured , exclusive of any attached
bonus, is not less than Rs.250/-. The
reduced sum assured will become
payable on the event as stipulated in the
policy.
Bonus:
Is there anything extra payable besides
the sum assured at that time of claim
Insurance Corporation distributes its
surplus among policy holder to with profits
polices in the form o bonuses. Substantial
bonuses have been declared in the past
after valuation of policy liabilities.
Whole Life
LIC’s this plan is mainly devised to
create an estate for the heirs of the
policyholder as the plan basically
provides for payment of sum assured plus
Premium
Payment
Term
5 years
Minimum
PremiumRs. 50,000 p.a.
Maximum
PremiumRs. 2,00,000 p.a.
Modes of
Premium
payment
Yearly
Policy Term 10 years (fixed)
Maximum
Maturity
Age
75 years
Minimum
Sum
Assured
Age
at
entry
<45
yrs
>=45
yrs
Minimu
m SA
10 *
Annual
Premium
7 *
Annual
Premium
Whole Life
ICICI Pru Whole Life provides you with
a unique double advantage of savings
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bonuses on the death of the policyholder.
However, considering the increased
longevity of the Indian population, the
Corporation has amended the above
provision, thereby providing for payment
of sum assured plus bonuses in the form
of maturity claim on completion of age 80
years or on expiry of term of 40 years
from date of commencement of the policy
whichever is later.
The premiums under the policy are
payable up to age 80 years of the
policyholder or for a term of 35 years
whichever is later.
If the payment of premium ceases after 3
years, a paid-up policy for such reduced
sum assured will be automatically
secured provided the reduced sum
assured exclusive of any attached bonus
is not less than Rs.250/-. Such reduced
paid-up policy is not entitled to participate
in the bonus declared thereafter but the
bonuses already declared on the policy
will remain attach, provided the policy is
converted in to a paid-up policy after the
premiums are paid for 5 years.
Suitable For:
This policy is suitable for people of all
ages who wish to protect their families
from financial crises that may occur owing
to the policyholder’s premature death.
and protection that not only allows you
to meet your goals but also seeks to
ensure that your dear ones will continue
to live their lives in comfort without
financial worries in case of unforeseen
eventuality
You always strive to provide the best for
your family, you set goals to buy a car, a
house, get married, secure your
children’s education, go for that dream
vacation and secure a better life after
retirement. Most importantly, you want
to ensure your family receives all these
benefits during your lifetime and also in
case you are not around.
Features and benefits of ICICI Pru
Whole Life
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Benefits
Insurance Regulatory & Development
Authority (IRDA) requires all life insurance
companies operating in India to provide
official illustrations to their customers. The
illustrations are based on the investment
rates of return set by the Life Insurance
Council (constituted under Section 64C(a)
of the Insurance Act 1938) and is not
intended to reflect the actual investment
returns achieved or may be achieved in
future by Life Insurance Corporation of
India (LICI). For the year 2004-05 the two
rates of investment return declared by the
Life Insurance Council are 6% and 10%
per annum.
Product summary
This is a whole of life assurance plan that
provides financial protection against
death through out the lifetime of the Life
Assured.
Premiums:
Under Table Nos 2 & 5 the premiums are
payable yearly, half-yearly, quarterly,
monthly or through Salary deductions, as
opted by you. Under Table No 8 the
premium is payable in one lump sum
(Single Premium).
Under Table No 2 the premiums are
payable for a period of 35 years or up to
age 80 years, whichever is later. Under
Triple advantage of ICICI Pru Whole
Life
1. Survival benefit: Create a corpus to
meet your desired goal at the end of a
chosen premium paying term. You are
entitled to the chosen Sum Assured and
all the bonuses declared, if any, during
the premium paying term.
2. Life cover benefit: In case of your
untimely demise during your premium
paying years, your family would receive
twice the Sum Assured along with all
bonuses accumulated during the
premium paying term of the policy.
3. Whole life cover benefit: You are also
entitled to an additional Sum Assured
payable in case death occurs after the
completion of the premium paying term
or on completion of 100 years of age,
whichever is earlier, allowing you to
leave a legacy to your dear ones.
Key features of the plan:
o Life cover of double Sum Assured and
vested reversionary bonuses, if any,
during the premium paying term
o Wealth creation through regular bonus
additions declared at the end of each
financial year
o Survival benefit of Sum Assured plus
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Table No 5 the premiums are payable up
to the selected premium paying period.
Under Table No 2 the premiums are
payable for a period of 35 years or up to
age 80 years, whichever is later. Under
Table No 5 the premiums are payable up
to the selected premium paying period.
The premiums are payable for the periods
as specified above or up to earlier death
Bonuses:
This is a with-profit plan and participates
in the profits of the Corporation’s life
insurance business. It gets a share of the
profits in the form of bonuses. Simple
Reversionary Bonuses are declared per
thousand Sum Assured annually at the
end of each financial year. Once
declared, they form part of the
guaranteed benefits of the plan. A Final
(Additional) Bonus may also be payable
provided a policy has run for certain
minimum period.
Death Benefit:
The Sum Assured plus all bonuses to
date is payable in a lump sum upon the
death of the life assured.
Maturity Benefit:
This is a whole of life assurance plan and
hence does not have a maturity date.
vested reversionary bonuses and
terminal bonus, if any, at the end of the
premium paying term
o Additional life cover for the chosen
Sum Assured post premium payment
term, for whole life
o Enhanced coverage through riders –
Accident and Disability Benefit Rider,
Critical Illness Rider and an Income
Benefit Rider
o Avail of tax benefits on the premium
paid and benefits received under the
policy, as per the prevailing Income Tax
laws. Service tax and education cess
will be charged extra, as per applicable
rates. The tax laws are subject to
amendments from time to time.
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You, however, have the option to take the
Sum Assured plus all bonuses declared
under the policy anytime after 40 years
from the date of commencement of the
policy provided you have attained, at
least, 80 years of age.
Supplementary/Extra Benefits:
These are the optional benefits that can
be added to your basic plan for extra
protection/option. An additional premium
is required to be paid for these benefits.
Surrender Value:
Buying a life insurance contract is a long-
term commitment. However, surrender
value is available under the plan on
earlier termination of the plan.
Guaranteed Surrender Value:
The policy may be surrendered after it
has been in force for 3 years or more.
The guaranteed surrender value is 30%
of the basic premiums paid excluding the
first year’s premium. In case of a single
premium policy the guaranteed surrender
value is 90% of the single premium paid
excluding any extra/additional premium.
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Public Views About Both The
Companies
1. What do you consider insurance?
A. Simple Insurance
B. Savings
C. Investment
According to my research 50% of people believe that insurance is
only simply insurance, neither saving nor investment.
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While, 38% people believe that it is one type of savins. 12%people
believe that insurance is a sector where we invest for a long time.
2. Have you taken insurance policy?
A. YES
B. NO
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As per my result 97% people say that they have taken the policy
and secured their life. But yet 3% people are such who have not
taken the insurance policy.
3. Which type of company do you prefer?
A. Private company
B. Public company
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The above figure shows that most of the people i.e. 71% have
taken insurance from public sector company while only 29% of
people are interested in private sector company.
4. Which insurance policy do you prefer?
A. Children Plan
B. Pension Plan
C. Health Plan
D. Protection Plan
E. Special Plan
F. Endowment Plan
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As per my research 32% of people want to protect their salves
so they have chosen protection plans.
18% people are such who are more curious about their
children’s future so they prefer children plicy. Another 18%
people have prefered endowment plans.
At the same time 14% people prefer health plans. Very few
people i.e. 9% prefer special plans and another 9% people
prefer pension plan
5. From the following which is the best insurance company according to
you?
A. LIC
B. ICIC PRUDENTIAL LIFE INSURANCE
C. OTHERS
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.
As per my research 65% people would like to take insurance from LIC
(public sector) while, 20% people prefer ICICI Prudential Life Insurance
and very few people i.e. 15% prefer other companies. There are some
reasons behind it which can be judge from remaining questions.
6. Why have you choosen ICICI Prudential Life Insurance?
A. Innovative plans avaible
B. India’s no. 1 private life insurance company
C. Good premium rate
D. Quick reliable services
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From amongst the people who have chosen ICICI Prudential Life
Insurance 50% of people say that they have choosen this company
because of their quick and reliable services.
18% people have choosen ICICI Prudential Life Insurance because it is
providing new innovation plans to the customers.
While 16% people have choosen ICICI Prudential life insurance because it
is india’s no. 1 private insurance company and another 16% people have
choosen it because of it’s good premium rates.
7. Why you have choosen LIC?
A. Government guarantee
B. Good premium rate
C. Variety of plans
D. A trusted company
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Those who have choosen LIC from among them 65% people believe that
there is government guarantee in public sector and they also believe that
in public sector there is no risk in loosing the money.
And 22% get insured because of 50 year’s trust in public sector i.e. in LIC.
8% people prefer LIC because of variety of plans avaible in LIC while only
5% people are such who prefer LIC because of it’s good premium rates.
8. Why have you not choosen LIC?
A. Delay in providing services
B. The Government interferance
C. Slow decision making process
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From among the people who have not chosen LIC, 50% of them say
that the reason is LIC’s slow decision making process.
While 25% people have not chosen LIC because of its delay in
providing services; and the remaining 25% people have not chosen
due to the government interference in LIC.
9. Why have you not chosen LIC?
A. No Government guarantee
B. High penalty charges
C. Profit making approach
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Those who have not chosen ICICI Prudential Life Insurance from them
56% people believe that there are no Government guarantee in private sector
i.e. ICICI Prudential Life Insurance
23% people have not chosen because of its profit making approach and
the remaining 21% people have not chosen it because of its high penalty
charges.
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8.FINDINGS
By doing this project I have concluded the following points:
If we compare private and public sector company than mostly i.e. 71%
people would like to invest their money in public sector. Only 29%
people are such who would like to invest in private sector.
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About 97% people have taken the insurance and only 3% people have
not taken insurance. The major factor which influences the people are
variety and innovative policies, premium rates and insurance cover.
At the same time 65% people prefer LIC due to its government
assurance but there are 35% people who have not chosen it due to its
slow decision making process.
20% people have chosen ICICI Prudential Life Insurance due to its
reliable services. But there are 65% who have not chosen due to
absence of Government assurance.
At the present period the share of LIC in the total market is better in
comparison to ICICI Prudential Life Insurance.
At last we can say that mostly people would like to take insurance in
public sector. But if we see the market strategy than we can conclude
that the share of public sector is shifting from public to private sector.
Over and above this there are some other reasons on the basis of
which we can say that both the companies i.e. private and public are
growing at parallel level on the basis of following points:
o Policies
o Insurance Cover
o Administration
o Premium Rate
o Marketing Strategy
o Branch expansion.
Name: -----------------------------------------------------------------------
Address: ------------------------------------------------------------------------
------------------------------------------------------------------------
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Occupation: --------------------------------------------------------------------
Sex: ----------------------------
Income: ------------------------------------------------------
Questions
1. What do you consider insurance?
A. Simple Insurance
B. Savings
C. Investment
2. Have you taken insurance policy?
A. YES
B. NO
3. Which type of company do you prefer?
A. Private company
B. Public company
4. Which insurance policy do you prefer?
A. Children Plan
B. Pension Plan
C. Health Plan
D. Protection Plan
E. Special Plan
F. Endowment Plan
5. From the following which is the best insurance company according
to you?
A. LIC
B. ICIC PRUDENTIAL LIFE INSURANCE
C. OTHERS
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6. Why have you choosen ICICI Prudential Life Insurance?
A. Innovative plans avaible
B. India’s no. 1 private life insurance company
C. Good premium rate
7. Quick reliabl Why you have choosen LIC?
A. Government guarantee
B. Good premium rate
C. Variety of plans
D. A trusted company e services
8. Why have you not choosen LIC?
A. Delay in providing services
B. The Government interferance
C. Slow decision making process
9.Why have you not chosen LIC?
A. No Government guarantee
B. High penalty charges
C. Profit making approach
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9. BIBLIOGRAPHY
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Books:
Business Environment- C.B.Gupta
Financial market- Vasant Desai
Management of banking and financial Services- Justin Paul & Padmalatha
Suresh
Newspaper:
Financial Express
Websites:
www.licindia.com
www.iciciprulife.com
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