``

SUMMER INTERNSHIP

REPORT ON

“INVESTMENT IN INSURANCE SECTOR”

SUBMITTED TO: SUBMTTED BY:

MR. AMAR JOHRI RAMNEET KAUR

B.B.A. V SEM

“FINANCE”

ACKNOWLEDGEMENT

Well to say this is my project would be totally untrue. At best this was my dream. There are people in this world, some of them so wonderful that made this dream become a project. I would like to thank all of them, and in particular :Especially, MR. SAURABH GARG Franchise manager - who trained us about products and services of IDBI FEDERAL INSURANCE and taught us how to deal with customer and to know there need and analyze it so that to provide the customers with best and the suitable product.

The internship opportunity I had with IDBI FEDERAL was a great chance for learning and professional development. Therefore, I consider myself as a very lucky individual as I was provided with an opportunity to be a part of it. I am also grateful for having a chance to meet so many wonderful people and professionals who led me though this internship period.

Bearing in mind previous I am using this opportunity to express my deepest gratitude and special thanks to the Prof. AMAR JOHRI who in spite of being extraordinarily busy with his duties, took time out to hear, guide and keep me on the correct path and allowing me to carry out my project at their esteemed organization and extending during the training.

I express my deepest thanks to NAVEEN KAPOOR, AREA HEAD for taking part in useful decision & giving necessary advices and guidance and arranged all facilities to make life easier. I choose this moment to acknowledge his/her contribution gratefully.

I perceive as this opportunity as a big milestone in my career development. I will strive to use gained skills and knowledge in the best possible way, and I will continue to work on their improvement, in order to attain desired career objectives. Hope to continue cooperation with all of you in the future,

THANKING YOU

RAMNEET KAUR

PREFACE

There is a famous saying “The theory without practical is lame and practical without theory is blind.”

Investing in INSURANCE SECTOR helps us to secure our money and get future benefits. It not only helps but also guide us the best place and techniques to invest our money and get profits out of it. FOR EXAMPLE: TAX BENEFITS UNDER 80C AND 10(10D).

Finance is an important part of any business and also for a human being to get secure their family from future uneven.

Our institution has come forward with the opportunity to bridge the gap by imparting modern scientific management principle underlying the concept of the future prospective managers.

To the emphasis on practical aspect of management education the faculty of GRAPHIC ERA UNIVERSITY has with a modern system of practical training of repute and following management technique to the student as integral part of GRADUATION in accordance with the above obligation under going project in “IDBI FEDERAL”. The title of my project is “INVESTMENT IN INSURANCE SECTOR”

Certainly this analysis explores my abilities and strength to its fullest extent for the achievement of organization as well as my personal goal.

EXECUTIVE SUMMARY

My project is all about INSURANCE SECTOR in INDIA. In this project I will brief

about what is basically insurance, why we need to invest in these sectors, why it is

important etc. I am going to look at the Insurance market in INDIA and start to

introduce some of the key concepts and ideas behind LIFE INSURANCE.

WHAT IS INSURANCE?

INSURANCE is a contract between the insurance company (insurer) and the

policyholder (insured). In return for a consideration ( the premium), the insurance

company promises to pay a specified amount to the insured on the happing of a specific

event.

WHY IT IS NEEDED?

LIFE INSURANCE provides protection to a family on the untimely death of the income

provider. FOR EXAMPLE: If a person dies and he has a life insurance cover than the

family will receive money from the insurance company which can help them for their

survival. The insurance company will help to take care of the family’s living expenses,

education and marriage etc.

Insurance, then, is nothing but a risk transfer mechanism wherein the person taking out

insurance transfers their risk to the insurance company in return for a payment( known as

premium).

The purpose of studying INSURANCE SECTOR is to get knowledge and spreading

awareness among people about the LIFE INSURANCE plans and products which can

help them whenever any uneven situations comes in their life.

In this project I have mentioned different types of products available with INSURANCE

COMPANY and how it gives benefits to people. Through this 1 month internship I come

across many situations as if dealing with people, convincing them by knowing their

needs and priorities and also customer satisfaction.

My basic study is on INSURANCE provided by IDBI FEDERAL which gives a proper

guideline in investing money and getting extra benefits in terms of tax, bonuses (terminal

bonus) and the fixed rate of return.

The PRODUCTS mentioned are GUARNTEED INSURANCE, WEALTH

INSURANCE last but not the least CHILDSURANCE PLAN.

The further study on the topic INSURANCE and INSURANCE PRODUCTS will clear

the path of investing money in a most appropriate place and taking out all kinds of

benefits and uses out of these insurance companies. This study will clear all doubts and

confusion which a human being had in him regarding investing in INSURANCE

SECTOR and will give a new view point to their investing plans.

DECLARATION BY STUDENT

I, the undersigned hereby the project report entitled “INVESTMENT IN INSURANCE

SECTOR” indentifying its importance with special reference to IDBI FEDERAL,

DEHRADUN written and submitted by me to GRAPHIC ERA UNIVERSITY in

partial fulfillments of requirements for the award of degree of BACHELORS OF

BUSINESS ADMINISTRATION under the guidance of Prof. MR. AMAR JOHRI, is

my original work and interpretations drawn therein are based on material collected by

myself.

PLACE: Dehradun

DATE:

NAME: Ramneet kaur kalra

INDUSTRY PROFILE

INTRODUCTION TO INSURANCE SECTOR IN INDIA

HISTORY OF INSURANCE IN INDIA

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers’ contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies.

 

     In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers.

 

   The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business.

 

      An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

 

     The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of

the General Insurance Council, a wing of the Insurance Associaton of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then.

 

    In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973.

 

     This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector.The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein , among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners.

 

     Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.

 

     The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and

has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders’ interests.

 

    In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.

 

     Today there are 28 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 24 life insurance companies operating in the country.

     The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the country’s GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

WHAT IS BASICALLY INSURANCE When faced with an unexpected accident, you feel a need of security that won’t instigate you to beg for money at the eleventh hour. Any kind of protection or a safety net is welcomed rather than having nothing.

Insurance, in the simplest terms, means you pay a lump sum to get a leverage or protection against an incident of a large magnitude. So, when the unexpected misfortune is encountered, the insurance company can step in, helping you out to sail through the dirt.

In all we can define insurance as:Insurance is a contract between the insurance company (insurer) and the policyholder (insured). In return for a consideration (the premium), the insurance company promises to pay a specified amount to the insured on the happening of a specific event.

Insurance comes in many forms and types. You can have liability, life, health, auto or property insurance and much more. This protection is for other people-people dependent upon you for one thing or another. Property insurance is young protection procurement against damage to your home items like unexpected loss under floods, fir attack or other natural freaks. All professionals persons like doctors, lawyers, get insured for their specific profession under professional liability insurance.

LURS & NEED Is it necessary to be insured? Many of us keep writing off checks per month and never exercise the insurance rights. That way, the monthly investment for a security, or protection, you may never need, seems stupid.

Insurance is actually the fuel, allowing the powerful countries (like USA) economic engine to keep running! It not only provides you protection, but lends security to all and everybody near you. The amounts, paid per month in insurance, keeps the economy floating, ensuring that banks have enough moving cash to keep business and industries running up. Insurance is simply a mutual interest between you and the bank. You get back complete recovery plan and coverage in case of any misfortune, natural or man brought.

Can you fight off against an unexpected disaster by yourself? If you think you can, then

That is great; otherwise, insurance is your best shot. Insurance means you do not have to be on the streets, if someone the main family bread earner passes away, or the roof over your road to quick salvation.

The greatest asset insurance bestows is the absolute peace in case of most traumatic moments of one’s life. A dying man, who is insured for life, would breathe his/her last in complete peace, knowing he/she can pass without fretting over the financial state of his/her family. In automobile accident, you do not lay down in a panic attack, if the vehicle is properly insured. Hence, it would be justifiable to claim that insurance brings an extra strength to face the worst upsets of life.

LOOK UP FACTORS: Insurance is an addiction. No matter how much protection it gives against all probable risks; one needs to walk with care, lest he/she is drowned in all the lure and whirlwind of the insurance mania. The market, at present, is full of million types of insurances, so it is hard to figure where to stop.

Keep in mind that human life can never be without a risk. The best way to deal with risks is to get insured. One has to buy protection if not for himself/herself, but for the family-that is why insurance structure exists and functions in the world.

THIS WAS ALL ABOUT INSURANCE SECTOR IN INDIA. FROM THIS INSURANCE WE CAN NOT ONLY SECURE OUR FAMILY BUT CAN ALSO PROVIDE THEM VARIOUS BENEFITS. NOW I WOULD LIKE TO FOCUS ON WHAT IS LIFE INSURANCE BASICALLY???????

What Is Life Insurance?

A life insurance policy is a contract with an insurance company. In exchange for premiums (payments), the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries in the event of the insured's death.

Typically, life insurance is chosen based on the needs and goals of the owner. Term life insurance generally provides protection for a set period of time, while permanent insurance, such as whole and universal life, provides lifetime coverage. It's important to note that death benefits from all types of life insurance are generally income tax-free.1

There are many varieties of life insurance. Some of the more common types are discussed below.

Term life insurance

Term life insurance is designed to provide financial protection for a specific period of time, such as 10 or 20 years. Typically, premiums are level and guaranteed for that time. After that period, policies may offer continued coverage, usually at a substantially higher premium rate. Term life insurance is generally a less costly option than permanent life insurance.

Needs it helps meet: Term life insurance proceeds are most often used to replace lost potential income during working years. This can provide a general safety net for your beneficiaries and can also help ensure the family's financial goals will still be met—goals like paying off a mortgage, keeping a business running, and paying for college.

It's important to note that, although term life can be used to replace lost potential income, life insurance benefits are paid at one time in a lump sum, not in regular payments like paychecks.

Universal life insurance

Universal life insurance is another type of permanent life insurance designed to provide lifetime coverage. Unlike whole life insurance, universal life insurance policies are flexible and may allow you to raise or lower your premium or coverage amounts throughout your lifetime. Like whole life insurance, universal life also has a tax-deferred savings component, which may build wealth over time. Additionally, due to its lifetime coverage, universal life typically has higher premiums than term.

Needs it helps meet: Universal life insurance is most often used as a flexible estate planning strategy to help preserve wealth to be transferred to beneficiaries. Another common use is long term income replacement, where the need extends beyond working years. Some universal life insurance product designs focus on providing both death benefit coverage and building cash value while others focus on providing guaranteed death benefit coverage.

Whole life insurance

Whole life insurance is a type of permanent life insurance designed to provide lifetime coverage. Because of the lifetime coverage period, whole life usually has higher premiums than term life. Policy premiums are typically fixed, and, unlike term, whole life has a cash value, which functions as a savings component and may accumulate tax-deferred over time.

Fidelity does not currently offer whole life insurance.

Needs it helps meet: In addition to providing lifetime coverage, whole life is commonly used to accumulate tax-deferred savings. Whole life can also be used as an estate planning tool to help preserve the wealth you plan to transfer to your beneficiaries.

Comparing Types of Life Insurance

Term Life

Insurance

Universal Life Insurance Whole Life

Insurance

Needs it helps

meet

Income

replacement in a

lump sum

Wealth transfer, income

protection and some

designs focus on tax-

deferred wealth

accumulation

Wealth transfer

preservation and tax-

deferred wealth

accumulation

Protection

period

Designed for a

specific period

(usually a number

of years)

Flexible; generally, for a

lifetime

For a lifetime

Cost

differences

Typically less

expensive than

permanent

Generally more expensive

than term

Generally more

expensive than term

Premiums Typically fixed Flexible Typically fixed

Proceeds paid

to beneficiaries

Yes, generally

income tax-free

Yes, generally income tax-

free

Yes, generally

income tax-free

Investment

options

No No2 No

May help build

equity

No Yes Yes

Available

through

Fidelity

Yes, Fidelity Term

Life Insurance3

Yes, Universal Life

Insurance, primarily

focused on death benefit

protection

Not currently offered

Advantages of Life Insurance

ADVANTAGES OF LIFE INSURANCE

Life Insurance provides the dual benefits of savings and security. The following benefits explain why this investment tool should be an integral part of your financial plans.

Risk Cover - Life today is full of uncertainties; in this scenario Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event.

Planning for life stage needs - Life Insurance not only provides for financial support in the event of untimely death but also acts as a long term investment. You can meet your goals, be it your children's education, their marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite. Traditional life insurance policies i.e. traditional endowment plans, offer in-built guarantees and defined maturity benefits through variety of product options such as Money Back, Guaranteed Cash Values, Guaranteed Maturity Values.

Protection against rising health expenses - Life Insurers through riders or stand alone health insurance plans offer the benefits of protection against critical diseases and hospitalization expenses. This benefit has assumed critical importance given the increasing incidence of lifestyle diseases and escalating medical costs.

Builds the habit of thrift - Life Insurance is a long-term contract where as policyholder, you have to pay a fixed amount at a defined periodicity. This builds the habit of long-term savings. Regular

savings over a long period ensures that a decent corpus is built to meet financial needs at various life stages.

Safe and profitable long-term investment - Life Insurance is a highly regulated sector. IRDA, the regulatory body, through various rules and regulations ensures that the safety of the policyholder's money is the primary responsibility of all stakeholders. Life Insurance being a long-term savings instrument, also ensures that the life insurers focus on returns over a long-term and do not take risky investment decisions for short term gains.

Assured income through annuities - Life Insurance is one of the best instruments for retirement planning. The money saved during the earning life span is utilized to provide a steady source of income during the retired phase of life.

Protection plus savings over a long term - Since traditional policies are viewed both by the distributors as well as the customers as a long term commitment; these policies help the policyholders meet the dual need of protection and long term wealth creation efficiently.

Growth through dividends - Traditional policies offer an opportunity to participate in the economic growth without taking the investment risk. The investment income is distributed among the policyholders through annual announcement of dividends/bonus.

Facility of loans without affecting the policy benefits - Policyholders have the option of taking loan against the policy. This helps you meet your unplanned life stage needs without adversely affecting the benefits of the policy they have bought.

Tax Benefits-Insurance plans provide attractive tax-benefits for both at the time of entry and exit under most of the plans.

Mortgage Redemption- Insurance acts as an effective tool to cover mortgages and loans taken by the policyholders so that, in case of any unforeseen event, the burden of repayment does not fall on the bereaved family.

TYPES OF LIFE INSURANCE

When Mr. Mehta decided to get life insurance to protect himself and his family, he had to be sure he was choosing the right policy. He had to buy a life insurance policy that caters to his needs, as well as his son’s education needs and his daughter's marriage expenses. He was clear about that. These decisions could not be taken lightly anymore. When he was faced with his own mortality, it gave him the push he needed to save wisely and save for the future. His life insurance company helped him derive a formula that best suited his requirements and the requirements he has for his children. The various life insurance policies he could choose from are listed below:

Term InsuranceThis type of life insurance policy is a contract between the insured and the life insurance company to pay the persons/s he has given entitlement to receive the money, in the case of his/her death, after a certain period of time. These policies can be taken for 5, 10, 15, 20 or 30 years.

Endowment PolicyIn an endowment policy, periodic premiums are received by the insured person and a lump sum is received either on the death of the insured or once the policy period expires.

Money Back Life Insurance PolicyThis policy offers the payment of partial survival benefits (money back), as is determined in the insurance contract, while the insured is still alive. In case the insured dies during the period of the policy, the beneficiary  gets the full sum insured without the deduction of the money back amount given so far.

Group Life Insurance

This is when a group of people have been named under a single life insurance policy. It is popular for an employer or a company to add employees under the same policy. Each member of the group has a certificate as legal evidence of insurance.

Unit Linked Insurance PlanULIPs (Unit Linked Insurance Plan) offer the insured the double benefit of protection from risk and investment opportunities. ULIPs are linked to the market where the insured’s money is invested to help earn additional monetary benefits.

NOTE: After gathering information on insurance, types of insurance and a brief study on life insurance I would to focus on my main topic i.e. about IDBI FEDERAL, PRODUCTS OFFERED BY IDBI FEDERAL

COMPANY PROFILE

HISTORY ON IDBI BANK

Industrial Development Bank of India (IDBI Bank) is today one of India’s largest commercial Banks. For over 40 years, IDBI Bank has essayed a key nation–building role, first as the apex Development Financial Institution (DFI) (July 1, 1964 to September 30, 2004) in the realm of industry and thereafter as a full–service commercial Bank (October 1, 2004 onwards). As a DFI, the erstwhile IDBI stretched its canvas beyond mere project financing to cover an array of services that contributed towards balanced geographical spread of industries, development of identified backward areas, emergence of a new spirit of enterprise and evolution of a deep and vibrant capital market.

On October 1, 2004, the erstwhile IDBI was converted into a Banking company (as Industrial Development Bank of India Limited) to undertake the entire gamut of Banking activities while continuing to play its secular DFI role. Post the mergers of the erstwhile the bank with its parent company (IDBI Ltd.) on April 2, 2005 (appointed date: October 1, 2004) and the subsequent merger of the erstwhile United Western Bank with IDBI Bank on October 3, 2006, the tech–savvy, new generation Bank with majority Government shareholding today touches the lives of millions of Indians through an array of corporate, retail, SME and Agri products and services.

Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business strategy, a highly competent and dedicated workforce and a state–of–the–art information technology platform, to structure and deliver personalized and innovative Banking services and customized financial solutions to its clients across various delivery channels.

Services

Retail banking: It provides a wide range of products and services like deposits, loans, NRI services, demat, pension account, mobile banking, internet banking, investment schemes such as mutual fund, insurance products, bonds, debentures etc.

Corporate banking: It provides corporates project finance, film finance, foreign currency loan, working capital finance, treasury products, etc. Agri business and microfinance: It provides finance to agri businesses in the form of dairy loans, farm mechanization loans, financing for fisheries, poultry, piggery, warehouse receipt finance, etc.

SME: IDBI Bank also offers products and services to SME sector.

Subsidiaries of the bank

IDBI Capital Markets IDBI Intech  IDBI Asset Management

Milestones and Recognition

IDBI’s long term foreign currency debt was given Baa2 rating by Moody’s reflecting strong government ownership and control.

IDBI Bank was assigned ‘BBB’ rating by Standard's & Poor and Fitch, which represents strong market position.

IDBI’s long–term bonds, fixed deposits and short–term borrowing are rated by CRISIL, ICRA and Fitch, reflecting high safety in respect to timely payment of interest and principal.

2010IDBI Bank launches Portfolio Investment Scheme (PIS)2011IDBI Bank Launches Aadhaar Enrolment in BiharIDBI Bank Launches Aadhaar Enrolment in KeralaIDBI Bank Launches Aadhaar Enrolment in ChennaiIDBI Bank Ltd. Awarded the ISO 9001: 2008 Certification for its Customer Care Centre and In–House Journal.IDBI Bank Wins the Dun & Bradstreet Banking Awards 2011 for Best Bank & Best Public Sector Bank.IDBI Bank launches “Being Me” Savings Account For the Youth on International Youth Day.IDBI Bank Launches Magic Card.

2012IDBI Bank Launches ‘Urban Financial Inclusion Programme’ at Dhobi GhatIDBI Bank Launches Kisan Credit Smart CardIDBI Bank Receives Greentech CSR AwardIDBI Bank launches Floating Rate Interest on Retail Term Deposit (FRTD)IDBI Bank launches IDBI Samriddhi CD PortalIDBI Bank Launches 24*7 Loan Monitoring System for its Retail and Corporate

Clients  IDBI Bank Launches MSE Focused Branch in Jalandhar.IDBI Bank launches India's first online Retail G–Sec Portal.

2013IDBI Bank Introduces Digital Signature based authentication for Corporate Inet Banking Channel  IDBI Bank introduces online PPF Subscription FacilityIDBI Bank establishes inland Letter of Credits (LCs) through Structured Financial Messaging System (SFMS) and introduces issuance of BRC in electronic form.

2014IDBI Bank wins the 3rd Annual Greentech CSR Award for the year 2013IDBI Bank Wins the Golden Peacock CSR Award for the year 2013IDBI Bank Launches Kiosk Banking Solution under Financial Inclusion and donated Solar lamps to Chinchvali Gram Panchayat under CSR.

The Present

Today, IDBI Bank is counted amongst the leading public sector banks of India, apart from claiming the

distinction of being the 4th largest bank, in overall ratings. It Is presently regarded as the tenth

largest development bank in the world, mainly in terms of reach. This is because

of its wide network of 1474 branches, 2649 ATMs and 1052 ce n t e r s . Ap a r t f r om

be ing i nvo l ve d i n bank i ng s e r v i ce s , ID BI ha s s e t up institutions like The

National Stock Exchange of India (NSE), The National Securities Depository Services Ltd. (NSDL) and

the Stock Holding Corporation of India (SHCIL).

OBJECTIVES & FUNCTIONS OF IDBI

Objectives

The main objectives of IDBI is to serve as the apex institution for term finance for industry in India. Its objectives include:

Co-ordination, regulation and supervision of the working of other financial institution

such as IFCI, ICICI, UTI, LIC, Commercial Banks and SFCs.

Supplementing the resources of other financial institutions and there by widening the

scope of their assistance.

Planning, promotion and development of key industries and diversification of industrial

growth.

Devising and enforcing a system of industrial growth that conforms to national

priorities.

Functions

The IDBI has been established to perform the following functions-

To grant loans and advances to IFCI, SFCs or any other financial institution by way of

refunding of loans granted by such institution which are repayable within 25 year.

To grant loans and advances to scheduled banks or state co-operative banks by way of

refinancing of loans granted by such institution which are repayable in 15 years.

To grant loans and advances to IFCI, SFCs, other institutions, scheduled banks, state co-

operative banks by way of refinancing of loans granted by such institution to industrial

concerns for exports.

To discount or re-discount bills of industrial concerns.

To underwrite or to subscribe to shares or debentures of industries concerns.

To subscribe to or purchase stock, shares, bonds and debentures of other financial

institutions.

To grant line of credit or loans and advances to other financial institutions such as IFCI,

SFCs, etc.

To grant loans to any industrial concern.

To guarantee deferred payment due to any industrial concern.

To guarantee loans raised by industrial concerns in the market or from institutions.

To provide technical, legal, marketing and administrative assistance to any industrial

concern or person for promotion, management or expansion of any industry.

Planning, promotion and developing industries to fill up gaps in the industrial structure in

India.

To act as trustee for the holders of debentures or other securities.

About IDBI Federal Life Insurance

IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity each. . Having started in March 2008, in just five months of inception, IDBI Federal became one of the fastest growing new insurance companies to garner Rs 100 Cr in premiums. Through a continuous process of innovation in product and service delivery IDBI Federal aims to deliver world-class wealth management, protection and retirement solutions that provide value and convenience to the Indian customer. The company offers its services through a vast nationwide network of 2137 partner bank branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on 28th February 2013, the company has issued over 8.65 lakh policies with a sum assured of over Rs. 26,591 Cr. IDBI Federal today is recognized as a customer-centric brand, with an array of awards to their credit. They have been awarded the PMAA Awards (2009) for best Dealer/Sales force Activity, EFFIE Award (2011) for effective advertising, and conferred with the status of ‘Master Brand 2012-13’ by the CMO Council USA and CMO Asia

History

2006: IDBI Bank, Federal Bank and Belgian-Dutch insurance major Forties Insurance

International NV signed a MoU to start a life insurance company

2008: IDBI Forties Life Insurance Co. Ltd., which started its operations in March 2008

2008: IDBI Forties opens its second branch in Andhra Pradesh in Vijay Wada

2008: IDBI Forties Life positive on assured return products

2008: IDBI Forties launches the Bondsurance Plan

2009: IDBI Forties announces Rs 250cr capital infusion

2009: Nimbus ropes in IDBI Forties as title sponsor of India–Sri Lanka series

2009: 'IDBI Forties' Boss-Ka-Boss receives PRCI Award

2009: IDBI Forties launches Retiresurance Pension Plan

2009: IDBI Forties scores with Goalsurance

2009: IDBI Forties reaches the banks of Hoogly

2009: IDBI Forties launches Incomesurance Immediate Annuity

2009: IDBI Forties Life Insurance uses an interactive application to help users easily

calculate their taxes

2009: IDBI Forties reaches the City of Eastern Light

2009: IDBI Forties receives bronze Dragon at 'PMAA 2009'

2009: IDBI Forties Life Insurance introduces financial inclusion plan in rural Orissa

2009: IDBI Forties launches Termsurance Protection Plan

2009: IDBI Forties redefines endowment & money back with Incomesurance

2009: IDBI Forties to open 65 more branches; raise headcount by 1,000

2010: IDBI Forties now renamed as IDBI Federal Life Insurance Company.

Technology

To monitor and manage its network equipment across 34 sites, IDBI Forties uses Tulip Proactive Managed CE solution. The solution includes device management, proactive troubleshooting and notification support. With the implementation of the solution, IDBI has reported improvement of network performance and availability, with a faster, more effective change and configuration management.

Products

IDBI Forties launched its first set of products across India in March 2008, after receiving the requisite approvals from the Insurance Regulatory and Development Authority (IRDA). IDBI Forties offers services through a nationwide network across the branches of IDBI Bank and Federal Bank in addition to a network of advisors and partners. IDBI Forties has 35 branches across the country.

Sponsorships, Awards

IDBI Forties Life Insurance Company was selected as the title sponsor for the

India-Sri Lanka Cricket Series 2009, consisting of five One-Day Internationals and a

Twenty 20 match. The ODI series will be called the IDBI Forties Wealthsurance Cup.

This will be followed by the IDBI Forties Wealthsurance Twenty20.

‘Wealthsurance Made Easy’ (WME), a knowledge aid by IDBI Forties for its

sales force, won The Bronze Dragon in the category for ‘Best Dealer/Sales Force

activity’ at the Promotion Marketing Awards of Asia (PMAA).

About the sponsors of IDBI Federal Life Insurance Co Ltd

IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial development bank. It came into being as on July 01, 1964 (under the Companies Act, 1956) to support India’s industrial backbone. Today, it is amongst India’s foremost commercial banks, with a wide range of innovative products and services, serving retail and corporate customers in all corners of the country from 1077 branches and 1702 ATMs. The Bank offers its customers an extensive range of diversified services including project financing, term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate advisory services and legal and technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients. As part of its development activities, IDBI Bank has been instrumental in sponsoring the development of key institutions involved in India’s financial sector –National Stock Exchange of India Limited (NSE) and National Securities Depository Ltd, SHCIL (Stock Holding Corporation of India Ltd), CARE (Credit Analysis and Research Ltd).

FEDERAL BANK

Type Public

Trade as

NSE:FEDERALBANK

BSE: 500469

LSE: FEDS

Industry Banking and allied industries

Founded Kochi, 1945

Headquarters

Federal Towers,

Aluva, Kochi - 683 101,

Kerala, India.

Key people Shyam Srinivasan (CEO)

Products Loans, Savings, etc.

Website www.federalbank.co.in

Federal Bank is one of India’s leading private sector banks, with a dominant presence in the state of Kerala. It has a strong network of over 1060 branches and 1158 ATMs spread across India. The bank provides over four million retail customers with a wide variety of financial products. Federal Bank is one of the first large Indian banks to have an entirely automated and interconnected branch network. In addition to interconnected branches and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, online bill payment and call centre facilities to offer round the clock banking convenience to its customers. The Bank has been a pioneer in providing innovative technological solutions to its customers and the Bank has won several awards and recommendations

 

History

In the year 1931, Travancore Federal Bank was inaugurated at Vengal Varuttisseril at Nedumpuram, near Tiruvalla, Kerala. The 14 founders included Sri Vengal Varuttisseril Oommen Varghese, his brothers Oommen Chacko, Oommen Kurian, Oommen George and also another person from Tiiruvalla, Kavumbhagam Mundapallil Lukose, and others. Oommen Varghese was the Chairman and Oommen Chacko the Manager. After it had functioned for nearly 10 years, the bank's day to day transaction had to be stopped due to the ill-health of the Manager.

Understanding this situation, a lawyer from Perumbavoor named Sri K.P.Hormis and his acquaintances joined together, bought the bank and took over the management. In 1945, they moved the bank's registered office to Aluva and Hormis became the Managing

Director. In 1947, the bank's name was shortened from Travancore Federal Bank to Federal Bank.

In 1970, the bank became a Scheduled Commercial Bank. Recently, it opened a representative office in Dubai.

Acquisitions and Mergers

In 1964, the bank embarked on a series of acquisitions that would substantially increase

its size. It acquired the Chalakudy Public Bank in Chalakudy, the Cochin Union Bank in

Thrissur, and the Alleppey Bank in Alappuzha.

In 1965, it acquired the St.George Union Bank in Puthenpally.

In 1968, it acquired the Marthandom Commercial Bank in Thiruvananthapuram.

In 2006, Federal Bank acquired Ganesh Bank of Kurundwad after the Reserve Bank of

India suspended the bank. Established in 1920, Ganesh Bank had its headquarters at

Kurundwad, Maharashtra. The bank had a network of 32 branches and its operations

were concentrated in Sangli and Kolhapur in Maharashatra and Belgaum in Karnataka.

Prior to the merger, Federal Bank had 20 branches in Maharashtra.

In March 2008, Federal Bank entered into a joint venture with IDBI Bank and Fortis

Insurance International to form IDBI Fortis Life Insurance, of which Federal Bank owns

26 percent. The company ended the year with over 300 Cr in premiums as on 31 March

2009.

On 24 August 2010, IDBI Fortis, rejuvenated as IDBI Federal Life Insurance with Aegas

of Belgium.

Ageas

Ageas N.V./S.A. (Belgium)

Ageas N.V. (Netherlands)

TypeNaamloze vennootschap / Société

anonyme

Traded as Euronext: AGS

Industry Financial services

Predecessor(s) Fortis Holding

Founded 1990 (as Fortis); 2010 (as Ageas)

HeadquartersBrussels, Belgium

Utrecht, Netherlands

Key peopleJozef De Mey (Chairman), Bart de

Smet (CEO)

Products Insurance

Revenue €13.65 billion (2010)

Profit €223.1 million (2010)

Total assets €99.17 billion (end 2010)

Total equity €9.869 billion (end 2010)

Employees 11,710 (end 2010)

Website www.ageas.com

Ageas is an international insurance group with a heritage spanning more than 180 years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in Europe and Asia, which together make up the largest share of the global insurance market. These are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia and served through a combination of wholly owned subsidiaries and partnerships with strong financial institutions and key distributors around the world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Hong Kong and UK. Ageas is the market leader in Belgium for individual life and employee benefits, as well as a leading non-life player through AG Insurance. In the UK, Ageas has a strong presence as the fourth largest player in private car insurance and the over 50’s market. Ageas employs more than 13,000 people and has annual inflows of more than EUR 21 billion.

History

The company's roots reach back to the 1824 foundation of the Belgian life insurer Assurances Générales (now AG Insurance).[2] In 1990 AG merged with the Netherlands-based bancassurer AMEV/VSB to form Fortis. AMEV/VSB had itself been formed earlier that year by the combination of savings bank VSB (Verenigde Spaarbank) and insurer AMEV, which took advantage of the recent relaxation of Dutch legislation preventing mergers between banks and insurers. AMEV had originally been founded in Utrecht in 1920 as Algemeene Maatschappij tot Exploitatie van Verzekeringsmaatschappijen (English: General Society for Operation of Insurance).

After its creation in 1990, Fortis expanded its offerings to include private and investment banking and asset management, establishing subsidiaries around the world, and by 2007 it had become the 20th largest business in the world by revenue. That year Fortis agreed to jointly purchase ABN AMRO with Banco Santander and Royal Bank of Scotland Group, but the onset of the major financial crisis exacerbated problems with financing its part of the large acquisition and prompted fears of impending insolvency. Considered "too big to fail", Fortis received an €11.2 billion bailout from the Benelux governments

and saw its retail banking operations in Belgium sold to BNP Paribas and its insurance and banking subsidiaries in the Netherlands nationalised.

The remaining assets of the company, consisting principally of insurance operations but also including some distressed assets, were rebranded Fortis Holding. In April 2010 its shareholders agreed a formal change of name to Ageas N.V. /S.A., with ownership of the Fortis brand passing to BNP Paribas.

Operations

The company is the largest provider of insurance in Belgium, owning 75% of AG Insurance the remainder is held by Fortis Bank N.V./S.A., which was sold to BNP Paribas in 2009). Products are sold through independent agents, brokers and financial planners, and through branches of BNP Paribas Fortis and its subsidiary Banque de La Poste/Bank van De Post.

Ageas also wholly owns the subsidiary Ageas Insurance International (formerly Fortis Insurance International), through which it is the United Kingdom's third-largest provider of private vehicle cover and fourth-largest provider of travel insurance through subsidiaries such as Kwik Fit Insurance. Fortis Insurance International also operates in France, Germany, Turkey, Ukraine and Hong Kong and holds partnerships or joint ventures in Luxembourg, Italy, Portugal, China, Malaysia, India and Thailand. In addition, Ageas holds 45% of Royal Park Investments, a special purpose vehicle which manages a portfolio of "toxic" structured credit assets previously held by Fortis Bank.

PRODUCTS OFFERED BY IDBI FEDERAL INSURANCE

At IDBI Federal, it’s our constant endeavor to create innovations that create value for our customers. These innovations are brought to life through our wide array of products that fit the varying financial and investment needs at different stages of life.

Secure your child’s future.

At every step.

A savings plan to support your child’s important milestones

Being a good parent means making sure your child gets good education so that her future stays secure. The cost of education has shot up significantly and is expected to rise further. Add to that the cost of your child’s marriage or giving her a head start in career. It is therefore important for you to stay prepared. Plan early to help your child’s dreams

come true tomorrow and support her at every important milestone of life. Go ahead; secure your child’s future. At every step!

PLAN OVERVIEW

IDBI Federal Childsurance ® Savings Protection Plan (UIN: 135N032V01) is a non-linked participating endowment plan that ensures your child’s future financial needs are fulfilled. Childsurance® Savings, is designed to give you guaranteed annual payouts and aid the important milestones in your child’s life. What’s more, in the unfortunate event of you not being around, the policy will continue exactly as you had planned it, without any further premiums being paid. .In other words, this plan ensures that your child gets to live

his/her dream exactly as you have planned, whether or not you are around.

Age at entry - Insured Person (Parent)

Minimum 18 years

Maximum

Regular payment option: 40 yearsLimited payment option: 50 years

Age at entry - Nominee (Child)

Greater than one month and less than 18 years of age

Maturity age (Insured Person)

Minimum 28 years

Maximum

Regular payment option: 65 YearsLimited payment option: 75 years

Policy term Minimum 10 years

Maximum

25 years

Premium payment term   Regular payment option: Equal to policy termLimited payment option: 5 years less than the policy term

Premium payment frequency   Yearly, and monthly by ECS, standing instructions or direct debit only

Premium(exclusive of service tax and education cess)

Minimum Yearly: Rs.10,000, Monthly: Rs.1,000 Loading factor of 0.09 is applicable for monthly premium payment frequency

Maximum

No limit (subject to underwriting)

Maturity Sum Assured Minimum Subject to above minimum premium

Maximum

No limit, subject to underwriting

WHY CHILDSURANCE?????

Guaranteed annual payouts for important milestones

Childsurance® gives you guaranteed annual payouts either in the last 3 or last 5 years of the policy, depending on the policy term you choose.

Bonuses to add to your savings

Right from the 1st year, you get reversionary bonus. Along with reversionary bonus, interim and terminal bonuses (if any) would also be paid out at maturity.

Immediate payout of lump sum in case of your unfortunate death

In case of an unfortunate event, the death sum assured will provide for your child’s immediate needs.

Waiver of future premiums

In case of an unfortunate event of you not being around, all future premiums of the policy will be waived off.

Plan continues and benefits are paid as planned

Even in the unfortunate event of death, the guaranteed annual payouts and bonuses will be paid on their respective due dates.

Two tax benefits

Childsurance® allows you to enjoy deductions under Section 80C of the Income Tax Act, 1961 on the premiums you pay. It also gives you maturity amount that is tax-free under section 10(10D). Childsurance offers you tax benefits for all the payouts.

Flexibility to plan for your needs

With Childsurance®, you have the option of choosing the maturity sum assured, policy term, premium payment term, and payment mode as per your child’s future needs.

Exclusive fund for your loved ones

By endorsing your Childsurance® policy under the Married Women’s Property Act, 1874, you can create an exclusive fund for your loved ones which is legally protected from creditors and claimants.

Loan facility

In case of an emergency, you can avail of the loan facility on your policy. Loan is available once the policy attains surrender value. For more on loans please refer to the product brochure.

HOW DOES THE PLAN WORKS???

We recommend you follow the steps given below while buying Childsurance Savings:

Decide the amount of guaranteed annual payouts you would need. This will depend on your plans for your child’s future.

Basis the amount of payouts, you should choose the Maturity Sum Assured (MSA). Guaranteed annual payouts are percentages of MSA such that sum of all guaranteed annual payouts equal to the MSA.

Next, choose when and for how long you would need the payouts – the difference between your child’s current age and the age at which the guaranteed annual payouts should end, will be the policy term. Accordingly, you will know whether you will get 3 or 5 guaranteed annual payouts. This can help you plan your child’s future better.

If you choose a Policy Term of 10 to 14 years, you will receive 3 Guaranteed annual payouts as 20%, 20% and 60% of MSA in the corresponding last 3 years of your policy. If you choose a Policy Term of 15 to 25 years, you will receive 5 Guaranteed annual payouts s in the last 5 years of your policy with 20% of Maturity Sum Assured each year.

The illustration below explains how the product works for a limited premium policy with a policy term of 14 years.

This second illustration below explains how the product works for a limited premium

policy with a policy term of 20 years

What are the benefits of Childsurance Savings?

The maturity benefit of your Childsurance Savings policy payable is the aggregate of the maturity sum assured and the declared bonuses.

Maturity Sum Assured: It is the sum assured that is used to determine your premium and maturity benefit. It is paid out as guaranteed annual payouts at important milestones for your child. You can choose your maturity sum assured based on the amount of guaranteed annual payouts you wish to receive.

i) Guaranteed annual payouts

Childsurance Savings gives guaranteed annual payouts either in the last 3 or the last 5 years of your policy, depending on the policy term that you choose. The policy term is the number of years for which you have chosen to have insurance cover.

The table below shows a breakup of the guaranteed annual payouts:

Guaranteed Annual Payouts(% maturity sum assured)Balance policy term

4 years 3 years 2 years 1 year At maturity

PolicyTerm10 to 14years

↓

Nil nil 20% 20% 60%

15 to 25 years

20% 20% 20% 20% 20%

ii) Bonuses

Your Childsurance Savings policy will participate in the profits of our participating policyholders’ life fund by way of reversionary bonuses and terminal bonus, if any. Bonuses are linked to the profits of the participating life fund and depend on the future experience and performance of the fund. The bonuses will be declared by the Board of IDBI Federal Life Insurance Company each year, and once added, they will form part of the guaranteed benefits of the policy. The company may declare an interim bonus in the event of a claim made before the subsequent bonus declaration.

Bonus is always applied on maturity sum assured.

Death Benefit

In the unfortunate event of your death during the term of the policy, the death sum assured is paid immediately. Additionally, the future premiums are waived and your nominee would be paid the guaranteed annual payouts on their respective due dates.

Your policy will continue to participate in the surplus of the participating policyholder’s life fund and the vested reversionary bonuses along with the terminal bonus, if any, would be paid at the end of the term.

Death sum assured:

The death sum assured is higher of 10 times annualised premium (for age less than 45) and 7 times annualised premium (for age 45 and above) .Maturity sum assured

Death benefit:

On death of the insured person the following death benefit will be paid Death sum assured, paid immediately on death, plus Future guaranteed annual payouts, to be paid on their due dates, plus Bonuses to be paid at end of term We will also ensure that the minimum death benefit paid will be equal to 105% of all premiums paid till date of death (excluding extra mortality premiums, services tax and cess, if any).

Flexibility to Choose a Plan to Suit Your Needs

Childsurance Savings is a flexible plan, and can be customised to suit your needs.

i) Choose your policy term: You can choose any policy term from a minimum of 10 years to a maximum of 25 years. You can choose a term in a way that you start receiving your payouts in time for your child’s educational expenses like graduation or post graduation fees, etc.

ii) Choose your premium payment term: You can choose the number of years for which you wish to pay premium. You have 2 options:

a. Limited payment - In this option, you pay premiums for a period which is 5 years less than the policy term. For example if you have chosen a policy term of 15 years, your premium payment term will be 10 years.

b. Regular payment - The premium payment term is the same as the policy term. For example if you have chosen policy term of 15 years, your premium payment term will also be 15 years.

iii) Choice of premium amount: The minimum premium amount that you can pay is `10,000 for annual installments and `1,000 for monthly installments. This is excluding service tax and education cess. A loading factor of 0.09 is applicable for monthly installments.

Example - Childsurance for education planningMr. Ajay Mishra is a 32-year old, healthy male with a 2-year old daughter. Mr. Mishra chooses to invest in Childsurance to secure the funds for his daughter’s future educational needs. He buys a plan with a maturity sum assured of `5, 00,000. He pays his premium annually. The date of commencement of risk is 3rd July 2012. Mr. Mishra chooses a policy term of 20 years and a premiums are exclusive of service tax and education.

Age of insured person maturity sum assured annual premiums policy termpremium payment

term32 5,00,000 32,405 20 15

The benefits Mr. Mishra would receive under the policy provided he survives to maturity are as follows:

Date of guaranteed annual payout

Daughter’sage (years)

Guaranteed annual payouts(A)

Total bonuses(not guaranteed)(B)@4%p.a @8%p.a

Total benefits(A)+ (B)

@4%p.a

@8%p.a

on 2 Jul 2028

18 1,00,000 - - 1,00,000 1,00,000

On 2 Jul 2029

19 1,00,000 - - 1,00,000 1,00,000

On 2 Jul 2030

20 1,00,000 - - 1,00,000 1,00,000

On 2 Jul 2031

21 1,00,000 - - 1,00,000 1,00,000

On 2 Jul 2032

22 1,00,000 1,00,000 4,20,000 2,00,000 5,20,000

Cumulativepayouts received for the entire term of the policy

5,00,000 1,00,000 4,20,000 6,00,000 9,20,000

Tax Benefits

You also get tax benefits for investing in Childsurance Savings. The premiums that you invest are eligible for deduction under Sec 80C of the Income Tax Act, 1961, up to the limit of`1,00,000 (this limit includes other eligible investments). The maturity benefit as well as death benefit that you receive is tax-free under Sec 10(10D) of the Income Tax Act, 1961

Other Benefits

Advantage women

Childsurance Savings offers an additional premium discount for female insured persons. The basic premium payable for a woman will be equivalent to the premium for a corresponding 3 year younger man.

For example, if you are a healthy woman and your age is 30 years, your premium payable will be equivalent to the premium of a 27 year old healthy man

Create exclusive funds for loved ones

A useful feature under Childsurance Savings is that you will be able to create exclusive funds for the benefit of your loved ones which no one else will be able to access. These funds are legally protected from creditors and claimants on estate such as legal heirs, parties to disputes and creditors. Under Section 6 of the Married Women’s Property Act, 1874 a married man can take an insurance policy on his own life and express it to be for the benefit of his wife or children. When such intent is expressed on the face of the policy, it shall be deemed to be a trust for the benefit of the named beneficiaries (your wife or children) and it shall not be subject to the control of the husband, or his creditors or form part of his estate. The Act also provides that nothing contained in the provision shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of assurance which may have been effected with intent to defraud creditors. You can ask for an endorsement of your Childsurance policy for the benefit of your children under the Married Women’s Property Act. You can also indicate the percentage share for each of your children in the policy. Once endorsed, the policy will be exclusively for the benefit of the named beneficiaries.

How to buy Childsurance Savings?

Age at entry - InsuredPerson (Parent)

Minimum:

Maximum:

18 years

Regular payment option: 40 years Limited payment option: 50 years

Age at entry - Nominee(Child )

Greater than one month and less than 18 years of age

Maturity age (InsuredPerson)

Minimum: 28years

Maximum:Regular payment option: 65 YearsLimited payment option: 75 years

Policy termMinimum: 10 years

Maximum: 25 years

Premium payment term

Regular payment option:Limited payment option: 5 years less than the policy termEqual to policy term

Premium paymentFrequency

Yearly, and monthly by ECS, standing instructions or direct debit only

Premium(exclusive of service taxand education cess)

Minimum:Yearly: 10,000, Monthly: `1,000Loading factor of 0.09 is applicable for monthly premium payment frequency

Maximum No limit (subject to underwriting)

Maturity sum assured Minimum: Subject to above minimum premium

Maximum: No limit, subject to underwriting

WEALTHSURANCE

IDBI Federal Wealth Suvidha Growth Insurance Plan

A systematic allocator to help you build wealth with ease. Option to choose how long you want to stay invested. Guaranteed loyalty additions to boost up your wealth Final protection against uncertainty. Partial withdrawal for emergency fund requirement.

Plan Overview

IDBI Federal Wealthsurance® Suvidha Growth Insurance Plan (UIN: 135L033V01) is a simple unit linked plan that helps you take your first step towards wealth creation and that too, with ease. What’s more, the life cover with this plan provides financial protection to your loved ones. 

Eligibility Criteria

Minimum/ Maximum

Age at entry Minimum • 1 month (subject to minimum maturity age)

Maximum • 65 years (subject to maximum maturity age)

Maturity age Minimum • 18 years

Maximum • 75 years

Policy term Fixed options • 10 years, 15 years and 20 years

Premium payment term

Fixed options • 10 years and in multiples of 5 thereafter

Premium Minimum • Rs. 15,000 p.a.

Maximum • Rs. 25,000 p.a.

Premium payment mode

Fixed • Annual

Sum assured Fixed 10 times the annual premium

All ages are as per last birthday

Why wealthsurance suvidha ?

Systematic allocator to help you build wealth with ease

You have two options of managing funds in Wealthsurance Suvidha. You can either manage the funds yourself or opt for Systematic Allocator. If you opt for Systematic Allocator, you will enjoy a balance between growth and safety. In the early policy years, your investment will have a higher exposure to equity. This will help your investments have the potential to earn you higher returns. As the policy approaches maturity, your investment will be automatically rebalanced to reduce the exposure to equity. This ensures that your investment is protected from the ups and downs of the equity markets. For more details on Systematic Allocator, please refer to the product brochure.

Option to choose how long you want to stay invested

With Wealthsurance® Suvidha, you can choose the policy term (PT) which is the duration for which you want to stay invested. In addition, you can also choose how long you want to pay your premiums by choosing the premium payment term (PPT) most suited to your needs. Please refer to the product brochure for combinations of PT and PPT available.

Guaranteed loyalty additions to boost your wealth*

At the end of the 10th policy year and every 5 years thereafter, you get guaranteed loyalty additions to boost your wealth.

Financial protection against uncertainty

In case of an unfortunate death during the policy term, your nominee gets the death benefit which is the sum assured or the fund value at that time, whichever is higher. At any time during the policy term, the death benefit will be more than 105% of all premiums paid.

Partial withdrawals for emergency fund requirements

In case of a financial emergency, you can make partial withdrawals from your funds any time after the 5th policy year. For more information on partial withdrawals, please refer to the product brochure.

Two tax benefits

The premiums you pay under Wealthsurance® Suvidha are eligible for tax benefit under Sec 80C of the Income Tax Act, 1961. The maturity benefit and death benefit are also tax free under Sec 10(10D).

Flexibility to switch funds and investment options

You can switch your investment option between Systematic Allocator and managing your funds by yourself. Also, if you are managing your funds yourself, you can also switch from one fund to the other.

Option to surrender

Wealthsurance Suvidha also provides the feature of surrendering the policy free of charge after the 5th policy year. A surrender amount equal to the fund value as on date will be paid out. Discontinuance charge will be applicable for policies surrendered within the first 5 years of the term.

Exclusive funds for loved ones

By endorsing your Wealthsurance Suvidha policy under the Married Women’s Property Act, 1874, you can create an exclusive fund for your loved ones which is legally protected from creditors and claimants.

Benefits of the Plan

Maturity Benefit

At maturity of the plan you will receive the fund value as on that date.

Death Benefit

In case the insured person dies before the maturity date while thepolicy is still in force, the company will pay higher of sum assured orfund value. In addition, at no time the death benefit would be lessthan 105% of the total premiums paid till the date of death.

Guaranteed Loyalty Additions

The IDBI Federal Wealthsurance Suvidha Growth Insurance Plangives an added impetus to your Investment Account throughguaranteed loyalty additions. Your investment account will beth credited with guaranteed loyalty additions at the end of 10 policyyear and every 5 years thereafter. Guaranteed loyalty additions willbe 3% of the average fund value in the last 36 months precedingthe guaranteed loyalty addition date. If you have invested in

multiple funds, we will add the guaranteed loyalty additions toeach fund in the same proportion as the fund value in each fund.

Investment Fund options

You can choose to invest your money in the following funds:

Equity Growth Fund (SFIN: ULIF04111/01/08EQOPP135

Investment objective &strategy

Asset Category Allocation

Invests in listed stocks and aims to generate high returns by pickingstocks that have growth prospects. It aims to diversify risk by investingin large cap as well as mid cap stocks across multiple sectors. The fundwill usually have a high proportion of investments in equities andequity-linked instruments other than in market conditions thatwarrant diversification into money market

Cash and money market

Equities and equity-linked instruments

0 – 50%

50 – 100%

Returns and Risk The returns from the Equity Growth fund are likely to be high

but the risk is also high.

Income Fund (SFIN: ULIF04211/01/08INCOME135

Investment Objective and Strategy

Asset Category Allocation

Aims to generate returns by investing in fixed income and money marketinvestments that carry low or medium market risk. Theduration of the underlying portfolio will be medium.The fund may use derivatives to meet its objective to the extentpermitted by the applicable guidelines

Fixed income investments

Cash and money market

25 - 100%

0 – 75%

The returns from the Income fund are likely to be related to short-term interest rates and the risk is also low

How to change your investment options

Your investment preferences may change over time. You can change the mix of your investment options in the following two ways:

Switching

At any time you may instruct the company in writing to switchsome or all of the units from one unit linked fund to another. Thecompany will give effect to this switch by cancelling units in theold fund and allocating units in the new fund.Note: Switches advised prior to 3:00 pm will be processed at unit price ofthe date of receipt of instructions, while switches advised after 3:00 pmwill be processed at the unit price of the day following the date of receipt ofinstruction. Currently there is no switching charge. The switching chargemay be introduced up to a maximum of `500 per request with the priorapproval of IRDA.

Premium Redirection

At any time you may instruct the company in writing to redirectall your future premiums in an alternative proportion to thevarious unit funds available. Redirection will not affect the

premiums paid prior to the request.Note: Minimum amount of premium redirection in any investment fundshould be at least 15% of the annual premium. This is not applicable if youhave opted for the Systematic Allocator.

Applicable NAV

New business premiums will be allocated units at the NAV as onthe date of commencement of the policy after completion ofthe proposal.Switches in investment fund(s) and renewal premiums receivedbefore the cut-off time at our designated office through localcheque or demand draft payable at par at the place the premiumis received will be allocated units at the same day’s NAV. Ifreceived after the cut-off time, the units will be allocated at thenext business day’s NAV.Renewal premiums paid through outstation cheques oroutstation demand drafts will be allocated units as per the NAV onthe business day of realisation of the cheques or demand drafts.In case you pay your renewal premiums in advance, the units willbe allocated as per the NAV prevailing on premium due date.In case of cancellation of units for charges and valid notificationand instructions received at our designated office for switches out,partial withdrawals, surrenders and death claims, we will apply thesame day’s NAV if the request is received before the cut-off time.Else, the request will be processed at the next business day’s NAV.The cut-off time will be as per the IRDA guidelines, which, atpresent is 3.00 pm.

Allocation of units

The company applies premiums less premium allocationcharges to allocate units in one or more of the unit linked fundsin the proportion that the policy owner specifies

Cancellation of units

To meet charges and to pay benefits, the company will cancelproportionate units equal in value to the amount of the paymentswhich are due. If the units are held in more than one unit linked

fund, then the company will cancel proportionate units in eachfund to meet the amount of the payment due. For partialwithdrawals, the company will cancel units in the unit linkedfunds as instructed by the policy owner. To meet charges, unitswill be cancelled from the various funds in the manner describedin the general terms and conditions.

Liquidity Benefits:-

Partial withdrawals

You can make partial withdrawals at any time during the policyterm subject to the total amount being withdrawn in any policyyear is not more than 20% of the fund value as at the beginningof that policy year. We will not allow partial withdrawals whichwould result in termination of the contract. The minimumamount of any partial withdrawal is `10,000. The fund valueafter the partial withdrawal should not be less than one annualregular premium.In a policy where life insured is minor, partial withdrawals will beallowed only after the insured person attains the age of 18. Unitsto the value of each withdrawal are cancelled from the unit linkedfunds according to the proportions that the policy ownerspecifies. Currently, there is no partial withdrawal charge. Thepartial withdrawal charge may be introduced up to a maximumof `500 per request with the prior approval of IRDA.Partial withdrawal will not reduce the minimum death benefit of105% of the total premiums paid till the date of death

Reduction in death benefits following a partial withdraw In the event of the death of the insured person before age 60, wewill deduct the total of any partial withdrawals made in the two years preceding the date of death from the sum assured. On the 60 birthday of the insured person, we will reduce the sumassured by the total amount of all withdrawals made between the insured person’s 58 and 60 birthdays. We will furtherreduce the sum assured by the amount of any withdrawals made,after attaining the age of 60.However the minimum death benefit paid will always be 105% ofall premiums paid till date of death

Surrender

Your policy will have a lock-in period of five years from the date of inception. If the policy is surrendered within the lock in period, a discontinuance charge will be applicable as given in the section on ‘Discontinuance of Basic Premiums’. We will credit the fund value less the discontinuance charge, to the discontinued policy fund and the insurance benefit will cease. At the end of the lock-in or revival period (whichever is later), we will terminate your policy and refund the proceeds of the discontinued policy. After completion of the five year lock in period you may surrender your policy at any time and there is no surrender charge and we will pay you the entire fund value as on the date of surrender.

ELIGIBILITY CONDITIONS

Eligibility Criteria

Minimum /Maximum

Age at entry Minimum: 1 month (subject to minimum maturity age)

Maximum: 65 years (subject to maximum maturity age)

Maturity age Minimum: 18 years

Maximum: 25 years

Policy term Fixed options

10 years, 15 years and 20 years

Premium payment term Fixed

options10 years and in multiples of 5 thereafter

Premium Minimum: RS`15,000 p.a.

Maximum: RS. 25000 p.a

Premium payment mode

Fixed Annual

Sum assured Fixed Basic sum assured: 10 times the annual premium

GUARANTEED MONEY BACK PLAN

Life is full of uncertainties, and as a result we always try and predict what lies in store in the future, so we can be prepared. However, our minds are always full of doubts as there is no way to guarantee the future. Incomesurance Guaranteed Money Back is a plan which will enable you to stop predicting the future, and guarantee it instead!

PLAN OVERVIEW

IDBI Federal Incomesurance™ Guaranteed Money Back Insurance Plan (UIN No. 135N031V01) is a non-linked non-participating money back plan which gives you

guaranteed* returns on your investment, so that you stop worrying about the future. With Incomesurance, you can guarantee a secure future for your family even when you are not

around.

Age at entry of life insured (last birthday)

Minimum 18 years

Maximum

55 years

Age at maturity of the life insured (last birthday)

Maximum

65 years

Death sum assured Fixed 10 times of Annual premium

Premium Minimum Rs.20,000

Maximum

Not applicable

Premium payment period Fixed 5 years

Policy term Fixed 10 years

Survival benefit

Guaranteed annual payouts are paid at the end of every year from the 6th to the 10th policy

year

WHY INCOMESURANCE??????

Guarantee as it should be

At the time of buying Incomesurance, you know exactly how much you will get as guaranteed annual payouts.

Limited premium payment term

You pay premiums only for the first 5 years of the policy.

Guaranteed annual payouts

You will receive guaranteed annual payouts at the end of each year from the 6th to the 10th policy year. These payouts are a defined percentage of your annual premium* depending on your age at entry.

Flexibility to choose premium amount as per your needs

You can decide the premium amount based on how much money you want as guaranteed annual payouts from the 6th to 10th year of the policy.

Financial protection against uncertainty

In case of the unfortunate death, your family will get 10 times the annual premium* as death benefit regardless of any payouts received by you in the past.

Two tax benefits

You get tax benefit of Section 80(C) of the Income Tax Act, 1961 on premiums paid towards Incomesurance. The payouts you receive are also tax free under Section 10(10D)

of the Income Tax Act, 1961. Please consult your tax advisor for more details.

Loan facility

Loan amount granted will be limited to 85% of Guaranteed Surrender Value available under the policy subject to a minimum loan amount of Rs 5000.

In case of financial emergency

You have the option to surrender the policy in case of a financial emergency after you pay 2 annual premiums from the date of commencement of your policy.

Exclusive funds for your loved onesYou can create an exclusive fund for your loved ones by endorsing your policy under the Married Women Property Act, 1874. These funds are legally protected from creditors and claimants.

HOW DOES IT WORK????/

Incomesurance is a simple plan with guaranteed benefits. On payment of premiums for 5th years you will receive guaranteed annual payouts at the end of every year for the next 5th years. At the time of purchasing the policy, you will know exactly how much you will receive as guaranteed annual payouts. The guaranteed annual payouts that you receive will depend on two factors - the amount of annual premium that you pay and your age. For instance, if you are 40 years of age, the guaranteed annual payout from the end of the 6th year to the end of the 10th year will be guaranteed at 135% of the annual premium paid. This means that if you pay a premium of 1, 00,000 per annum for 5th years, you would receive a guaranteed annual payout of `1, 35,000 from the end of the 6th to the end of the 10th year. The guaranteed annual payouts are subject to you paying all due premiums in full. Throughout the term of 10 years, your family will be financially protected against uncertainties through the life cover of 10, 00,000 that you get with Incomesurance.

BROCHURE

Stop predicting. Guarantee your future. A money back insurance plan to provide guaranteed* annual income.Life is uncertain. In this uncertainty, we always look for things that give us some guarantee of what lies ahead in our lives. When it comes to our investments, the assurance of guarantee becomes even more important. Many of us also look for regular payouts that help us manage our expenses and forthcoming financial commitments. Unfortunately, there are very few investment options that can provide us the combination of guarantee and regular payouts.

Presenting

IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan

At IDBI Federal, we understand this need and bring to you IDBI Federal Incomesurance GuaranteedMoney Back Insurance Plan (referred to as Incomesurance hence). This plan gives you a real guarantee -what you see is what you get!What’s more, this plan comes with the benefit of life cover throughout the term of the policy!

What are the benefits of Incomesurance?

Pay premiums only for first 5 years of the policy

Incomesurance has a limited premium paying term of 5 years. This is ideal for you if you are looking to pay for a short duration only.

Get guaranteed annual payouts from the 6th to 10th year of the policyYou will receive guaranteed annual payouts at the end of each year from the 6th to the 10th

year of the policy. For these 5th years you will receive guaranteed annual payouts which are a defined percentage of your annual premium (excluding service tax and extra mortality charges). This percentage depends on your age as shown in the table below

Guaranteed annual payouts are a defined percentage of your annual premium, based on your age at entry. The table given below shows the rates corresponding to

age:

AGE PAYOUT AGE PAYOUT

18-30 138% 47 131%

31-36 137% 48 131%

37-39 136% 49 130%

40 135% 50 130%

41 135% 51 130%

42 134% 52 129%

43 134% 53 128%

44 133% 54 127%

45 133% 55 126%

46 132%

This amount is an additional income for your family which can be used to fulfil goals like family holidays, child’s university fees, buying a car or durables for the house, etc.

Flexibility to choose premium amount as per your needs You can decide upon your annual premium amount based on the following:

The amount of money you want to receive as pay back from 6th year onwards based on your financial goals.

The life cover you require to protect your family.

Protect family with life cover for 10 years of policy term

In case of the unfortunate event of death of the life insured during the policy term, your nominee will get the death sum assured, which is the highest of:

10 times of annualised premium (excluding service tax, education cess and extra mortality charges).

105% of all premiums paid

Maturity sum assured

Maturity sum assured is the sum of all the guaranteed annual payouts. This will provide your family with financial security for their future. The death sum assured will be payable at all times during the policy term even if there have been payouts made to you. However, the death sum assured is payable provided all due premiums are paid and the policy is in force.

Get 2 tax benefits of 80C and 10(10D).

Deduction under 80C: The premiums that you invest in Incomesurance are eligible for deduction under section 80C of the Income Tax Act up to the limit of `1, 00,000 (this limit includes other eligible investments).

Tax free benefits under section 10(10D): The survival benefit (guaranteed annual payouts) as well as death benefit that you receive in Incomesurance are tax free under section 10(10D) of the Income Tax Act, 1961.

There is also no tax deduction at source.

ELIGIBILTY

Age at entry of life insured

(last birthday)Minimum 18 years

Maximum 55 years

Age at maturity of the life insured(last birthday)

Maximum 65 years

Death sum assured FixedHighest of:• 10 times annual premium or• 105% of all premiums paid or• Maturity sum assured

Premium Minimum Rs. 20,000

Maximum Not applicable

Premium payment period Fixed 5years

Policy term Fixed 10 years

Survival benefitGuaranteed annual payouts are paid every year from the 6th to 10th policy year and are expressedas a percent of annual premium (exclusive ofservice tax, education cess and mortality loading )depending on the age at entry

OBJECTIVE OF THE STUDY

How to deal with customers and provide them best benefits which can secure their life as well as can provide security.

By providing various options to people in insurance sector matching their need.

To get detail knowledge about insurance sector with reference to IDBI FEDERAL

To analyze the growth of life insurance corporation of India during the post liberalizations era. This paper analyses components like growth in premium, new polices

To become a good dealer in insurance sector as well as to know the customer views towards insurance companies.

To examine the internal and external factors affecting the insurance sector.

RESEARCH METHODOLOGY

Business research is a systematic enquiry that provides information to guide business

decision and aimed to solve managerial problems. Business research is of recent origin

and it is largely supported by business organizations that hopes to achieve competitive

advantages Research Methodology is a way to systematically solve the problems. It may

be understood as a science of studying how research is done scientifically. It include the

overall research design, the sampling procedure, data collection method and analysis

procedure.

DESCRIPTIVE RESEARCH

Descriptive research study includes surveys and fact-finding enquires of different kinds,

which help the researchers to describe the present situation that makes the analysis

about15

the effectiveness of employee satisfaction among the employees and helps to reach the

objective.

Sources Data Collection Methods:

Primary Data:

Primary data was collected through survey method through selling plans and providing

facts to the people to branch manager and other sales manager. The primary data taken

from survey through the staff and others.

Secondary Data:

Data was collected from books, magazines, web sites, going through the records of the organisation, etc. It is the data which has been collected by individual or someone else for the purpose of other than those of our particular research study.

SAMPLE UNIT/SAMPLE SIZE:

The item selected from the population constitutes the sample size. The study covers the

customers of IDBI federal life insurance company. Total sample size for the study is 40.

SAMPLE SIZE:

The sample size was: 40 respondents.

I have targeted 40 customer in the age group above 21 years for the purpose of the

research. The target population influences the sample size. The target population

represents the Dehradun City regions. The people were from different professional and

non professional as well backgrounds. The details of our sample are explained in chapter

named primary research where the divisions are explained in demographics section.

RESEARCH DESIGN

Sampling design is to clearly define set of objective, technically called the universe to be

studied. This research has infinite set of universe and the sampling design used in the

study is non-probability sampling – convenience sampling.

TOOLS

Interaction with people

Observation made during the survey.

Process involved during the survey/ dealing.

ANALYSIS & INTERPRETATION

METHOD OF DATA EVALUATION

After the data analysis, it must be evaluate to get the decision. Here the decision rule will be applied that is univariate measure calculated to the decision. The liker’s scale is given 1-3 to each statement in the questionnaires. Based on the value indicated in the questionnaire, the average value for each factor is considered. The mean value lies between 1-3 which follows. 1) Agree 2) Neutral 3) Disagree

1 2 3

Further three types of degree of consideration that can be derived regarding

differentiation variables are show in the following table.

Range Decision Attribute

1<X=2.5 Low Level Relinquishment

2.5<X=3.5 Moderate Level Relinquishment

3.5<X<=5.0 High Level Relinquishment

PERSONAL INFORMATION The research is to identify the customer retention in IDBI federal insurance Co limited in

Coimbatore branch. Retaining the customer is based on the customer satisfaction. Age,

sex, civil status, education level, occupation, income also decide the satisfaction.

AGE DISTRIBUTION

Age distribution pattern of the customer in Coimbatore branch it’s represented by the

sample 100. Age distribution class was categories in to three classes.63% of customer

represented the age categories of 18-35 years. 5% of customer represented the age

categories of 36-50 years. 32% of customer represented the age categories of over 50

years.

Age Distribution Frequency Percentage

18-35 Years 63 63%

36-50years 5 5%

Over 50 Years 32 32%

Total 100 100%

RECOMMENDATIONS AND SUGGESTIONS

Based on the data collected through the questions and interactions with the Staff

and Workers of IDBI the following recommendations are made for consideration:

1. Complaint and Suggestion System: Employee can freely deliver complaints and

suggestions through facilities like suggestion box, personal meetings with seniors etc.

2. Lost Employee Analysis: The exit interviews are conducted or employee loss rate

is computed.

3: Periodic surveys by use of questionnaire or telephone calls to random sample of

recent buyer help to find out customer satisfaction and relate to repurchase intention and

word of mouth score.

4. Show a correct picture of the organization.

5. Provide full information.

LIMITATIONS

This study was conducted with less sample size due to time constraint and the survey was

conducted only in dehradun, so the research findings may not be generalized.

Some of the customers are reluctant to give full information, this leads to bias & may not

reflect the true picture.

The observations are only based on current scenario, as it could change in future.

People are not ready to interact easily

They are not ready to listen the plans and discuss their needs.

People are not ready to share their views with us.

CONCLUSION

The data were collected from the customer’s response of the IDBI Federal Life Insurance

Corporation Limited Coimbatore branch. Based on the percentage of the customers 100

sample size was collected. The age, gender, marital statuses, educational qualification,

occupation, monthly income, were analyzed as personal information in the questionnaire.

According to the collected personal information, most of the sample customers were

young age, single, educated, higher income customers who got insurance. According to

the research the IDBI Federal Life Insurance Corporation Limited Coimbatore have high

customer relinquishment because most of the customers did not insure out of their own

interest. Parents, Friends who are working or doing their project or internship in IDBI

Federal Life Insurance wanted them to have a policy. This is the reason why customers

move out of IDBI Federal.

BIBLOGRAPHY

Books 1. Research Method for Business Students-Pearson Education-Mark Saunders,

Philip Lewis, and Adrian Thorn hill. 2. Kothari C.R. (1990) Research Methodology: Method and Techniques,

WishvaParkashan, New Delhi. PP115-117

3. Bodie. Z, Kane. A & Marcus. J: Essentials of Investments PP242-243

Websites 1. http://www.economywatch.com/indianeconomy/indian-insurance-sector.html

2. http://www.indianmba.com/Occasional_Papers/OP85/op85.html

3. http://www.banknetindia.com/finance/insure2011.htm