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CONTENTS 1) 2) 3) 4) Preface Certificate Acknowledgement Introduction

Definition Need for Life Insurance Role of Govt. Role of Life Insurance Evaluation of Insurance Industries in India Future Scenario 5) 6) 7) Opening of Insurance sector in India Changing expectation of customer Major player

HDFC standard life insurance Life Insurance Corporation ICICI Prudent Om Kotak Mahindra Birla Plus Sun Life 8) 9) Comparison of the unit linked plan of various companies Research Methodology Objective and limitation

10) Data Analysis and findings
11) Conclusion Finding Suggestion 12) Appendices Query Bibliography

ACKNOWLEDGEMENT
I deem it as my personal duty to thank all those who proved indispensable in the completion of my project. I express my gratitude to Dr.Harpreet Singh(H.O.D) RIMT Institute of Engineering & Technology, Mandi Gobindgarh for his constant guidance, encouragement and inspiration given throughout the course of study. I would also like to thank Mr. Tejpreet Singh Asstt. Sales Manager, Patiala who allow me to undergo training at HDFC Standard Live Insurance Patiala. Least but not last I would like to thank all the Staff members who helped me in completing the project.

INSURANCE
Insurance is basically risk management device. The losses to assets resulting form natural calamities like fire, flood, earthquake, accident etc. are met out of the common pool contributed by large number of persons who are exposed to similar risks. This contribution of many is used to pay the losses suffered by unfortunate few. However the basic principle is that losses should occur as a result of natural calamities or unexpected events which are beyond the human control. Secondly insured person should not make any gains out of insurance. It is natural to think of insurance of physical assets such as motor car insurance or fire insurance but often be forget that creator all these assets is the human being whose effort have gone along way in building upto assets. In that scene human life is a unique income generating assets. Unlike physical assets which decreases with the passage of time. The individual become more experience and mature as he advances in age. This raises his earnings capacity and the purposes of life insurance is to protect the income to individual and provide financial security to his family which is dependent of his income in the event of his pre mature death. The individual also himself also himself also needs financial security for the old age or on his becoming permanently disabled when his income will stop. Insurance also has an element of saving in certain cases. Insurance is rupees 400 billion business in India and yet its spread In the country is relatively thin. Insurance as a concept has not being able to make headway in India. Presently LIC enjoys a monopoly in Life Insurance business while GIC enjoys it in general insurance business. There has been very little option before the customer to decide the insurer. A successful passage of the IRA bill have clear

It is very important that the trained marketing professionals who are able to communicate specific features of the policy should shall sell the policy. including: 1. Temporary needs threats: . In the next millennium all the activities would play a crucial role in the overall development and maturity of the insurance industry. Definition General Definition:In the words of D S Hansell. polices were to provide for short periods of time. It was realized what a useful tool it was in a number of situations. Characteristics of Insurance Sharing of risk Co-operative device Evaluation of risk Payment on happening of special event The amount of payment depends on the nature of losses incurred Need of the Life Insurance:The original basic intention of life insurance is to provide for one’ family and perhaps others in the event of death. It is likely to bring in a more professional and focuses approach. covering temporary risk situations. More over the foreign players would bring sophisticated actuarial techniques with them which would facilitate the insurer to effectively priced the product.” Contractual Definition:In the words of justice Tindall “insurance is a contract in which a sum of money is paid to the assured as consideration of insure’ incurring the risk of paying a large sum upon a given contingency. such as sea voyages. Originally. As life insurance became more established. “ Insurance may be defined as a social device providing financial compensation for the effects of misfortune. the paying being made from the accumulated contributions of all participating in the scheme.the way of private sector operators in collaboration with their overseas partner.

4. 3. With more traditional. Regular saving: Providing one’s family and oneself. In contrast saving held in a deposit account can be accessed or stop easily. Investment: Put simply. It is superior to traditional saving machine As well as providing a secure vehicle to build up saving etc. In other words.The original purpose of Life Insurance remains an important element. namely providing for replacement of income on death etc. the policy will pay out guaranteed sum assured. It encourages saving and forces thrift: Once an insurance contract has been entered into. In the event ultimately death. the main earner in the family. which is likely to be significantly more then the total premiums paid. the only return would be the amount invested plus any interested accrued. as a medium to long term exercise (through a series of regular payment of premiums). BENEFITS: 1. Retirement: Provision for one’s on later years has become increasingly necessary. until the end of the term of policy. one can buy a suitable insurance policy which will provide periodical payments on one’s old age. where the individual makes are one time payment. it becomes compulsory for the insure to save regularly and spend wisely. 2. It provides easy settlement and protection against creditors . 2. 3. of say. Especially in charging culture abs social environment. Unlike regular saving products are traditionally lump is investments. the insured has an obligation to continue paying premiums. the building up of saving while safeguarding it from ravages of inflation. it provides pieced of mind to the policy holder. otherwise the policy will lapse. saving vehicles such as fixed deposits. This has been become more relevant in recent times as people seek financial independence from their family.

and the society and large place on the provision of retirement benefits. A loan. 5. Govt. Include Life Insurance premiums and contribution to a recognized PF etc. against certain policy. keen to reduce the dependency on the state via private pension provisions. if policy holder is not in a position to pay the premium. Role: Govt. where the policy is written under trust. 4. can be taken for a temporary period to tide over the difficulty. Tax relief: The policy holder obtains income tax rebates by paying the insurance premium. Under the married woman’s act the money available from the policy forms a kind of trust which creditors can not claim on. Most of the govt. They have a choice between using compulsion and incentives. chooses the later method. Tax relief is guaranteed in the pension plants and is extremely generous. Presence of life insurance policy facilitates credit for personal or commercial loans as it can be offered as collateral security. a claim under the life insurance contracts can be settled easily. In UK a certain amount of the proceeds can be taken as tax lump sum and reminder as taxable income. Tax treatments of the benefit caries by country and by benefits. the proceeds of gratuity and provident fund are tax free in the hand of the members. Sum contracts may allow the policy can be surrendered for a cash amount. In addition. reflecting the value that the govt. creditors have no right to any momies by the insurer.Once a person appointed for receiving the benefits or a transfer of rights is made (assignments). While most people recognize the tax hedging and tax saving potential . Benefits due on with drawl from scheme or approved pension plan. It can be enchased and facilities borrowing. In India. Role of Life Insurance Role1: Life Insurance as ‘investment’ insurance is an attractive option for investment. The specified from of saving which enjoys a tax rebate u/s 88 of the income tax act.

Thus insurance is a unique investment avenue that delivers sound returns insurance addition to protection. But insurance this case. By buying life insurance. the premiums you pay for an investment against risk. insurance products yields more compared to regular investment option as this is besides the added incentives (read bonuses) offered by insurers. Insurance provide you with that uniqueness scene of security that no other form of investment provides. you must accept that a part of total amount invested insurance life insurance goes towards providing for the risk cover. you buy peace of mind and are . age and medical condition of life insure etc. many are not aware of its advantage as an investment option as well as. insurance is about risk cover and protection – financial protection. In other words. if you take a life insurance policy for 20 years and survive the term the amount investor as premium insurance the policy will come back to you with family of the deceased will receive the sum assured.can give an insurance cover of up to approx. unlike non-products.of life insurance. 10000/. Thus. to be more presize – to help out last unpredictable losses. Role 2: Life Insurance as “Risk Cover” First and foremost. 10000/. If you invest Rs. Rs.5% interest over a year. you get maturity benefits on survival at the end of the term. Insurance life Insurance. year money grows to Rs. Now. 5 to 12 lacs. Designed to safe guard against losses suffered on account of an unforeseen events. The same amount of Rs. let us compare insurance as an investment options. Something that is the missing in non insurance products.insurance PPF. You can not compare an insurance product with other investment schemes for simple reason that it offers financial protection form risks. the access to your funds will be limited one can withdraw 50% of the initial deposit only after four years. while the rest is used for savings.) and this amount can become immediately available to the nominee of the policy holder on death. 10950 at 9. (depending upon the plan. before comparing with other scheme. Infect.

you can buy anything upward of Rs 100000/. Although life insurance business has been taking shape for the last 300years. The Indian insurance industry is as old as it is insurance other part of the world. First Life Insurance Company was established .tax benefit.prepared to face any financial demand that would hit the family incase of an untimely demise. insurance firms collect contributions for many people who face the same risk. This rebate is deductible from the tax payable by an individual or a Hindu undivided family. The Govt. you have a wide range of products and service to choose from.on payment of yearly premium of Rs 6000/. To provide such protection.a year. It also comes as a great help when you retire. Insurance also provides a safeguard insurance the case of accident or a drop insurance income after retirement. an individual is entitled to rebate 20% On the annual premium payable on his/her life and life of his/her children or adult children.’’ Insurance serves as an excellent tax saving mechanism too. Further. A loss claim is paid out of the total premium collected by the insurance companies.in sum assured. who act as trustees to the monies. it came to India with the arrival of Europeans. insurance case untoward incident happens during the term insurance the policy. U/S 88 OF Income Tax Act 1961. many of these can be further customizes to fit individual/group specific needs considering the amount you have to pay now. This means that you get Rs 12000/. of India have offered tax incentives to life insurance products insurance order to facilitate the flow of funds into productive assets. ROLS 3: LIFE Insurance as “Tax planning. With the entry of private sector player insurance insurance. This rebate is can be availed up to a maximum of Rs 12000/. THE EVALUATION OF INSURANCE INDUSTRY IN INDIA: Life insurance in its modern form is a western concept. As accident or disability can be devastating and an insurance policy can lend timely support to the family insurance such time. The rebate is reducible from tax payable by an individual or Hindu undivided family. its worth buying some extra sleep.

Nationalization has lent the industry solidity and growth which is unparalleled. the Govt of India effectively ended Lick’s monopoly and opened the door for private insurance companies Collaboration of Indian Companies with Foreign Companies.. Forever. The first insurance company insuring Indian Lives at standard rates was BOMBAY MUTUAL LIFE INSURANCE COMPANY which was formed insurance 1870. along with these achievements there also grew a feelings of Indian Company Kotak Mahindra Tata Group Sundram Finance Foreign Partner Chubb AIG Winterthur . mainly to provide for widows of Europeans. it was consider a land mark and a milestone on the way to the socialistic pattern of society that India had chosen after independence. LIFE INSURANCE CORPORATION OF INDIA (LIC) which enjoyed a monopoly of the life insurance business until near the end of 2000. the years subsequent to the Swadeshi movement saw the emergence of several insurance companies. This was also the year when Ist insurance act was passed by the British Parliament. we must take a look into its past history. These companies were nationalized by the Union Govt. The independent India started with private sector insurance companies. in 1965 to form a monopoly known as Life Insurance Corporation of India has being under public sector for over four decades till the govt. When the insurance Industry was nationalized. FUTURE SCENARIO:Before looking insurance future prospectus of the insurance industry. The companies that follow mainly catered to Europeans and charged extra premium on Indian Lives.insurance 1818 as Oriental Insurance. By enacting the IRDA act 1999. opened the insurance sector for private companies in 2000. At the end of the year 1995 there were 245 insurance companies AII the insurance companies were nationalized insurance 1965 and brought under one umbrella.

the penetration of insurance is also assessed by a ratio of insurance premium to gross domestic savings (GDS). While per capita insurance premium in developed country is high. traditions insurance adoption of modern practices to upgrades technical skills coupled with a scene of lethargy which probable led to a feeling amongst that the insurance industry was not fully responsive to customers needs. $887 for Singapore. It was only around 2% insurance India insurance 1999. LIC could not insure very fast growth of insurance in India even in a long period extending over four decades. it is quite low insurance India. The following indicates as explained and support this contention: 1. per capital insurance premium insurance India insurance 1999 was only $8 while it was $4800 for Japan and $1000 for Republic of Korea. 9% for UK and France. 12% for Korea. Hence the penetration of insurance is very low insurance India. 2. $823 for Hong-Kong and $144 for Malaysia. The life insurance corporation of India has not succeeded in extending the insurance cover to all the needy people of the country due to various reasons. 3.Spic ILFC Alpic Finance 20th Century Vysa Bank Cholamandlam SBI HDFC ICICI Hindustan Times IDBI Max India Metlife Cigna Allianz Canada Life ING Axa Alliance Capital Standard Life Prudential Commercial Union Principal New York Life Insensitivity to the needs of the market. While insurance premium . Similarly the penetration of insurance is also assessed by the ratio of insurance premium to gross domestic products in a country. For instance. Hence the 34th penetration of insurance is low here. While insurance premiums as a percentage of GDP was 14% in Japan 13% for South-Africa.

Canada 1. of India decided to open the insurance sector to make it more dynamic and customer friendly.01. No. Tata AIG Life Insuance Co. 35% for other European and American countries. Objective of Liberalization of Insurance:The main objective for the opening up the insurance sector to the private insures as under: To provide better coverage to the India citizens. 1 102 23-10-2000 Royal Sundaram Alliance Insurance Co. ING Vysya Life Insurance Co. Ltd. Ltd. Bajaj Allianz Life Insurance Co. Kotak Mahindra Old Mutual Life Insurance Ltd.as a percentage of GDS was 52% for UK. Name of the Company 1 2 3 4 101 104 105 107 23-10-2000 15-11-2000 24-11-2000 10-01-2001 HDFC Standard Life Insurance Company Ltd. it was only 9% insurance Indian Insurance 1999. Pvt. Ltd. South Africa 2. European union 25%.7% share of global insurance premium to is only 0. ICICI Prudential Life Insurance Co.2001 12. 4. Ltd. Ltd. the share of India insurance the world market insurance terms of gross insurance premium is again very small for instance while Japan 31%. Max New York Life Insurance Co. OPENING OF INSURNACE SECTOR INSURANCE INDIA The Union Govt.  To augment the flow of long term financial resources to finance the growth of infrastructure. SBI Life Insurance Co. 109 110 111 114 116 117 31. Insurance Industry in the year 2000-2001 had 16 new entrants.3%.2001 30-03-2001 02-08-2001 03-08-2001 06-08-2001 Birla Sun Life Insurance Co. Pvt. Ltd. No. Name of the Company General Insurers: Registration Number Date of Reg. Ltd. namely: Life Insurers: S. Metlife India Insurance Co. Registration Number Date of Reg. Ltd. 5 6 7 8 9 10 S. . hence even this index indicates low level of penetration of insurance insurance India.02.3% for India. Ltd.

Yr: 2001-2002 (From 1st Jan 2001 to Dec. Ltd. 2003 till date) Insurance Industry in this year. Yr: 200-2004 (From 1st Jan.To provide insights into customer experience prior to recent liberalization. so far has 5 new entrants’ namely S. . Ltd.2 3 4 103 106 108 23-10-2000 04-12-2000 22-01-2001 Reliance General Insurance Co. so far has 1 new entrants. Ltd. No. No. so far has 1 new entrants: namely Life Insurers: S. Registration Number Date of Reg. Ltd. Name of the Company General Insurers: 1 2 3 123 124 125 15-07-2002 27-08-2002 27-08-2002 Cholamandalam General Insurance Co. Ltd. Registration Number Date of Reg. IFFCO Tokio General Insurance Co. No. mapping changes in expectations after liberalization and perceived performance of insurance players vis expectations. Aviva Life Insurance Co. Registration Number Date of Reg. AMP Sanmar Life Insurance Co. Export Credit Guarantee Corporation Ltd. Name of the Company 1 2 S. CHANGING CUSTOMER EXPECTATIONS IN INSURANCE SECTOR PRE TO POST LIBERALIZATION Research Objective & Methodology Objective:. Ltd. Ltd. TATA AIG General Insurance Co. namely Life Insurers: S. ICICI Lombard General Insurance Co. 5 6 113 115 02-05-2001 03-08-2001 Bajaj Allianz General Insurance Co. Ltd. HDFC-Chubb General Insurance Co. Ltd. 2002) Insurance Industry in this year. No. Pvt. Name of the Company 1 128 17-11-2005 Shriram Life Insurance Co. Ltd. Name of the Company 1 127 06-02-2004 Sahara India Insurance Co. Ltd. 121 122 Registration Number 03-01-2002 14-05-2002 Date of Reg. Yr: 2004-2005 Insurance Industry in this year.

PRE PURCHASE PROCESS: LIFE . RESEARCH DESIGN RESPONDENT SEGMENTS Life Policy Holders • Old Customer: Taken insurance prior to liberalization only • Evolved customer: Taken insurance both insurance pre and post liberalization • New Customer: Taken insurance in post liberalization only Non Life Policy Holders • Motor Vehicle Insurance • Health Insurance • Property Insurance • Personal Accident Insurance Non Policy Holders (Life) RESEARCH DESIGN SAMPLING PLAN RESPONDENT CATEGORY LIFE POLICY NON-LIFE POLICY NON POLICY (LIFE) TOTAL SEC A 48 43 14 105 SEC B 41 21 15 77 SEC C 37 16 16 69 TOTAL 126 80 45 251 RESPONDENT CATEGORY LIFE POLICY Old Evolved Customer Customer 47 40 New Customer 39 TOTAL 126 The Insurance company faces financial challenge when it is not prepared for disaster management readiness for catastrophe claims and for lack of systematic approach insurance claims settlement strategies with cash flow.In depth qualitative study to capture indicative trends which can be statistically validated. Geographical Coverage: Delhi. Hyderabad & Bangalore.Research Approach:. if required. Mumbai. Kolkata.

Daughter’s marriage • • • • • Sources of information on insurance & product awareness Friends.Pre Liberalization Post Liberalization Motivating Factor(s) for considering insurance • Security 43% • Security 50% • Savings 14% • Savings 34% • Tax Rebate 43% • Tax Rebate 16% Children’s education. retirement plan. Relatives • Additionally form direct mailers. Colleagues. often has to commodity start form selling concept of • Average communication skills insurance rather than product. through referral some times aggressive (insurance one or two private • Long term family type of company agents. • Conducts financial health check up and then offers suitable products/solutions • Better communicator & presenter • Handles larger number of queries Awareness & Consideration of private players Private Overall SECA SEC B SEC C companies Awareness 73% 93% 30% 50% Consideration 35% 65% 30% 10% SECB & C prospect not influenced much by direct contact of agent and generally takes decision only after consulting informed family member or friend. relationship • Proactive insurance constacting • Often selling insurance as prospectus directly. and Agent consumer meets internet & media (mass media & outdoor) Low awareness of several insurance products due to poor • Rising level of aeareness of new communication is spite of products of both LIC and private availability companies Choice of first policy Money Back 60% • Money Back 42% Endowment 40% • Endowment 48% Whole Life 0% • Whole Life 10% This change insurance product-mix reflects maturing of the insurance customer Approach of the Agent and Consumer’s Experience • Approach of Agent-informal and • Approach more professional. AWARENESS OF NEW PRODUCTS-LIFE • Only some customers have mentioned new products such as .

• Mode-Registered for LIC-courier Hand delivered by agent insurance for private companies 23% case • In both cases policy comes in • Time taken attractive. • Purchase phase also Product Offering • Limited Products choices and • Product with multiple ridersless flexible products medical. • One Month 65% Up to 1 week 5% 85% • > 1 month 35% Upto one month 77% 15% > 1 month 18% 0% CLAIMS SETTLEMENT EXPERIENCE-LIFE (LIC ONLY SO FAR) FINAL MATURITY CLAIM . arranged by agent perfunctory • Experience more satisfactory. PURCHASE PROCESSL : LIFE Pre Liberalization Post Liberalization Role of Agent and customer’s Experience • Medical Examination: In several • Medical Examination: Both LIC cases details filled by agent and private company customers medical examination very examination. • Purchase experience with agent agent maintains regular contact reasonably satisfactory. but often post agent not insurance touch later. waiver of premium rider • Though most SEC A & some SEC B customers have generally heard liberalization but unable to provide any details. Protective plastic jacket • Up to 1 week 0% • Time taken LIC Private Co. • Flexi premium plans-product with singly premium and shout time premium option. saving & security plans Discount Offering Practices • No. of customers getting • Customers getting discount:33% discount: 50% (Highest insurance Delhi) • Fate of discount:25%-50% of • Rate of discount: more less same first year premium Policy Deliver • Mode-Registered post for LIC. accident. waiver of premium rider • Choice often determined by Agent push • Pension / retirement benefit plans flexi premium.• Products with multiply riders medical accident.

CHANGING CUSTOMER EXPECTATIONS-LIFE EXPECTATIONS FROM COMPANY • Premium notice should be sent regularly . but 1 to 3 month insurance some situation such as change of survivors address etc. in dispute cases 9 to 12 months. • Process very cumbersome and people faced many difficult CHANGING CUSTOMER EXPECTATIONS-LIFE TIME EXPECTATIONS • First premium receipt (FPR) delivery to customer insurance 2 days. • Most customer are satisfied with the overall process.• Involvement of agent very low (35%) • Payment mostly within 15 days. EXPECTATIONS FROM AGENT • Should Give Information On All Products & Not Push High Commission Products Only. • Policy document should be delivered within 7 days from FPR • Premium notice should arrive 30 days before due date • Final maturity payment should reach within 10 days of maturity date • Death claim should be settled insurance 30 days. DEATH CLAIM • Involvement of agent low though considered critical by nominee • Payment takes 3 to 6 month cases. • Should maintain regular contact with client to give information on new products/services • Premium payment reminder should come form agent also (besides form company) • Should college premium payment. deposit and handover receipt (from his existing customer who desire this service) • Should be actively involved insurance Death Claims settlement and Lapses Policy Revival.

prefer to pay through SEC B & some SEC C were ready for credit card payment system • Facility of purchasing policy through more channels. • Where customer is compelled to change agent due to poor service. credibility of private insurance company’s investment of . Set up Toll Free Help Line. Correct Disclosures • Information about systems/processes. • Company should bear service charge on credit card transaction • Most SEC B & all SEC C not inclined to pay through credit card. Payment through Credit Card • Payment through Credit Card • Most SECA & some SEC b would consider payment through credit card expect customers insurance Delhi who wanted to keep this as last option. particularly handling of complaints & grievances • Transparent and fair dealings • Information on new product/services through call centers. mailers and consumer meets. internet.• Premium payment at banks. internet and special collection centers (Om Kotak Insurance Mumbai). CHANGING CUSTOMER EXPECTATION-LIFE EXPECTATION FROM COMPANY (CONTD. new agent through’ whom premium is deposited be entitled to the commission thereafter. ROLE OF IRDA • Educate public on regulatory safeguards. investment guidelines and plough back of profits (several people had expressed concern about security of their money. • Flexible/wider range of products.) • • Focus on Consumer Education Fine Prints/Devil Insurance Detail .

New products Delay Insurance Premium Payment • Incidence of delay high 30% • Incidence of delay low 15% (due to irregular receipt of (more regular receipt of premium premium notice form notice form company /reminder company/reminder form agent) form agent) CHANGING TRENDS INSURANCE SAVINGS PATTERN . # Include deposits at private company collection centers Who Deposits Premium ? • Self* 44% • Self* 37% • Agent 49% • Agent 49% • Salary Saving scheme 7% • Salary Saving Scheme 14% • Includes relatives & friends • Includes relatives & friends Correspondence (other than premium notice form Company/Agent • Generally no correspondence • Mailers form both private form either company or agent companies & LIC on product & expect for late premium payment services.funds insurance foreign markets and repatriation of profits to foreign countries) • Inform public on Social and Rural Obligations of private players (several people believed that only LIC was responsible for insuring the poor). greeting cards on reminder from company birthdays. due to low awareness and security apprehensions. POST PURCHASE PROCESS : LIFE Pre Liberalization Post Liberalization Premium Notice Intimation form Company/Reminder from Agent • Notice form company 42% • Reminder form Agent 67% • Reminder form Agent 47% • Notice form company 77% Model of premium Payment • Cash 43% • Cash 41% • Cheque 57% • Cheque* 49% • Credit Card 10% • No case of payment through internet was observed. anniversary and New Year • Agent maintained informal contact with close customers • Phone calls form private company call centers • Agent insurance regular contact for offering.

Pre Liberalization Post Liberalization Saving instrument % of respondents Saving instrument % of respondents Insurance 23 Insurance 33 Bank Deposit 28 Bank Deposit 44 PPF 19 PPF 8 NSC 12 NSC 0 Shares 7 Shares 3 Post Office 7 Post Office 3 Bonds 0 Bonds 9 Gold 4 Gold 0 Total 100 Total 100 * when the respondents were asked where they would invest their extra income. HDFC’s assets base amount to over 15. Its financial strength is reflected in highest safety rating of . (HDFC) Founded in 1977. Qatar and Sultanate of OMAN. Dubai abd 3 nire services associate insurance Kuwait. COMPANY PROFILE HOUSING DEVELOPMENT FINANCE CORPORTION LTD. the top responses were recorded as above. HDFC has more than 110 offices insurance.000 crores. HDFC is today the market leader insurance housing finance insurance India and has extended financial assistance to more than 15 lacs homes. if any.

000 crore. 55. The Kingdom.000 crore and new premium income last year 33. the bank collected Rs. accounting for 11% of all new lending within the first operational tear. HDFC mutual Fund for mutual fund products. Being an institution that is strongly committed to the highest standards of quality and excellence.000 of the total deposit. Standard Life has total assets of Rs. One of the most recent success was the launch of Standard Life Bank on 1st January 1998. Its one of the new . HDFC is the only company so far to receive this award in the service category. HDFC – Promoted companies have emerged to meet the investors and customers needs. Germany and some more with representative office insurance Hong-Kong and China. for the last 6 year consecutively. HDFC bank for commercial banking. Ireland. Standard Life has been at the for frontry of the UK insurance industry for 176 years b combining sound financial judgement with inter gritty and reliability. The current loans outstanding amount to Rs. 28. 1999. to be allowed very shortly by HDFC Standard Life Insurance Company for the Life endurance and pension products. had an immediate impact on the UK market. it has a depositor base of over 11 lacs customer and a deposit agents force of over 46. 43. which demonstrates the tremendous confidence that retail investors have insurance the company.300 crore.“FAAA’ and “MAAA” awarded by CRISIL and ICRA – two of India’s leading credit rating agency respectively. its UK investment portfolio account for approximately 2% of all shares listed insurance the London Stock Exchange. STANDARD LIFE ASSURANCE COMPANY (SLAC): Founded insurance 1952. this award was instituted to award recognition to Indian companies for business excellence and quality achievement.000 crore insurance deposit. 73 are sourced from individual and trust depositors. The introduction of its innovative mortgage product insuance Jan. One such award is the “Ramakrishna Bajaj National Quality Award” for the year 1999. Spain. HDFC has won several accolades in the past few years. Insurance less than 20 months.

Besides. Among other things. Level business process maps and set about preparing the first project plan. for the third consecutive year. 1998. being voted company of the ears of overall service. Insurance Oct. looked at possible information technology. Around this time Standard Life purchased 2% infrastructure Development Finance Company Ltd. 1995 the companies signed a 3 year joint venture agreement. and booth ongoing delays insurance getting the insurance bill passed insurance parliament. (IDFC) standard life also . Despite this both companies remained firmly committed to venture. THE PARTNERSHIPS:HDFC and Standard Life commenced discussions about possible joint venture. Standard Life was recently voted ‘Company of the decade’ by independent brokers. The latter described Standard Life’s ability to meet its claim obligations as overwhelming under a variety of economic conditions.Insurance companies in the World to receive AAA rating form two of the leading international credit rating agencies. the team conducted market research. Insurance Oct. due to change insurance Govt. Around this time standard life purchased a 5% stake in HDFC. The company’s reputation insurance UK market remains unrivalled. Not surprisingly. Insurance financial terms. The next three years were filled uncertainty. Further strengthening the relationship. in Jan. 1995. Moody’s and Standard’s And poor’s. The quality and value standard Life brings to this venture are immense. documented high. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quichly formed. to enter the life insurance market. A small project term was set up insurance UK and India and set about preparatory work. Standard Life is rated as one of the few strongest companies insurance the world. the joint venture agreement was renewed and additional resources made available.

insurance Jan. Both parents companies strongly believe the program will benefit the new company insurance the years to come and are firmly committed to it. HDFC are main shareholders insurance HDFC standard Life Insurance Company Limited with 81. 1063 crores. 2000. 2000 under the name of HDFC Standard Life Insurance Company Limited. 2000 assets under the management reached Rs. 2000 and expect team form the UK joined a hand picked team form HDFC to form the core project based insurance Mumbai. The ambition of the company form as for back as Oct. On 23rd of Oct. Towards the end of 1999. The program was designed to identify high caliber individuals who would be sponsored by Standard Life to study for their mutual qualification in the UK The new company has 1 Indian actuary and 5 actuarial students in the team.4% while standard Life own 18. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake insurance HDFC bank. this ambition was realized when HDFC standard Life Insurance Company Limited were only Life company to be grated a certificate of registration. The mutual fund market was launched on 20th July 2000 and one on on the 10th Nov.6 given . the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. has been the actuarial student program. with a further 2 students undergoing training in the UK. Therefore. 1995 was to be first private company to reenter the life insurance market insurance India.started to use the services of the HDFC Treasury department to advise them upon their investments insurance India. Insurance further development standard life to participate insurance the Assets Management Company promoted by HDFC to enter the mutual fund market. The company was incorporated on 14th Aug. One of the many success stories over the last few years.

In short. which means that we are the most trusted company. the easiest to deal with. • Professionalism • Value of money • Customer services • Innovative Product • Use of Technology • Market Share As mentioned earlier the aim is to be yardstick against which all other life insurance companies and measured. investment allowed under current regulations.Standard Life’s existing investment in the HDFC Group. VALUES  Team Work  Customer Centric  People Care . This does not just mean being the largest or the moist proactive company insurance the market. MISSION AND VALUES OF HDFC STANDARD LIFE:MISSION:HDFC Standard Life have clearly on several occasions that they aim to be the top new life insurance company in the market. VISION “The Most successful and admired life insurance company. rather it is a combination of several things. offer the best value for money. and set the standards in the industry. This is max. “The most obvious choice for all”.

 Innovation  Integrity  Joy and Simplicity Product UNIT LINKED YOUNG STAR PLAN The HDFC Standard Life Unit Linked You: o An outstanding investment opportunity in a wide range of investment funds backed by HDFC. o Flexible additional benefit options such as critical illness cover. Sum Assured you had chosen* plus the fund built up by your and HDFC standard Life contributions. o Valuable protection in case of the insured parent’s unfortunate demise. You may also choose to pay additional single premiums. o Very flexible benefit combinations and payment options. ** 4 easy steps to your own plan Step1_ choose the premium wish to invest Step2_ Choose the amount of protection (Sum Assured) You desire. You can pay quarterly. leading fund manager. Step 2: Choose your level or protection You can choose any amount of Sum Assured with: . o Very flexible benefit combinations and payment options. half quarterly or annually. 10000 per year. o Valuable protection in case of the insured parent’s unfortunate demise. Step 1: Choose your regular Premium This is the premium you will continue to pay each year of the policy. The minimum regular premium is Rs. Step3_Choose the additional benefit options you desire. (See additional single premiums). Step4_Choose the investment found or funds you desire.

• A maximum of 20 times you chosen regular premium. Fund Details Asset Class Bank Deposit Govt. o Life Option-Death Benefit o Life & Health Option – Death Benefit + Critical illness benefit Step 4: Choose your investment Funds Choosing your investment options is important. You can reduce but not increase the sum assured any time during policy term. All units insurance a particular fund are identical. Step 3: Choose Additional to the maturity benefit. • The potential for higher but more variable returns over the term of you policy. or • More stable returns will lower long term potential. you can choose from these benefit options. You can choose form all or any of the following 5 funds.• A minimum of 5 times you chosen regular premium. We have 5 funds that give you. Your investment will buy units insurance any of 5 funds designed to meet you risk approach. & Money Securities Market & Bonds Fund Composition 100% ---100% 70% 85% tp Equity Risk & Return Rating Low Low Moderate Liquid Fund Secure Fund Defensive Fund Extremely low capital risk very stable returns More capital stability than equity funds * Access to better long term returns through equities * Significant bond exposure keeps risk down * Increased equity exposure gives better long term return * Bond exposure provides some stability * For those who wish to maximize their returns * 100% investment insurance high Indian equities --15% to 30% Balance Managed Fund Growth Fund -- 40 % to 70% -- 30% to 60% 100% High -- Very high Flexible products for your children’s needs .

We know your life will change as you children grow. We have designed the plan to meet your children’s needs now and insurance the future. * Switching: You can move your accumulate funds form one fund to another anytime. Flexible Options Premium Payments Benefits (i) You can pay your regular premium upto 15 days after the due date to fit in with you r cash flow.) 75 65 Minimum Life Option 10 Life and 10 health option Accessing your money a) On maturity Your policy matures at the end of the policy term you have chosen and your death and other risk covers ceases. * Premium Redirection: You can pay your future premiums into a different selection of funds. Changing your You can change your investment fund choices insurance two investment decisions ways. 5000 Premium Changes (iv) You can increase or reduce Stop or restart your regular premium at any time. (v) All changes will take place format the next premium due date. You may redeem your balance units at the then prevailing unit price and take the fund value with you. as per your need. Additional Single (ii) You can. Charges for life cover and any other risk cover you have chosen will continue to be charged.) Minimum 18 18 Maximum 60 55 Maximum age at expiry (yrs. very cost effectively invest any extra money you Premium might have to enhance the long term return and provide the little extras you child deserves (iii) The minimum additional single premium amount is only Rs. Benefit Options Term Period (Yrs. (vi) Life cover will continue as long as the policy is insurance force. You can use these features to improve the investment returns. .) Maximum 25 25 Entry Age (Yrs. Eligibility The age and term limits for taking out Unit Linked Young Star Plan are as shown below.

for the first three years of your plan. This is called the “Settlement Option” Your money will remain invested in the funds chosen by you. At the end of this 5 year period. . Your policy will terminate the moment the balance of your units in all the funds reaches zero. During such period. you also have the option to take your fund in periodical installments over the period which may extend to 5 years. we will continue to deduct charges other than the risk benefit charges such as the mortality charge. we will: • Pay the sum assured you had chosen to your child • Continue your policy and continue to pay the original regular premiums you had chosen Any critical illness cover terminates immediately c) On Critical Illness In case you are diagnosed with any of the critical illnesses covered before the end of policy term. we will • Pay the sum assured you had chosen to your child • Continue your policy and continue to pay the original regular premiums you had chosen The Death Benefit cover terminates immediately d) On surrender or Partial withdrawal In the first three years Insurance plans are long term investments with significant tax advantages. you may not surrender the plan or withdraw any portion of your funds from it.However. b) On Death In case of your unfortunate demise during the policy term. we will redeem the balance units at the then prevailing unit price and pay the fund value to you. Therefore. Neither the IRDA now we view them as short term plans.

BENEFICIARIES The beneficiary (your child) is the sole person to receive the benefit under the policy. Our charges. We will enforce surrender only if you have stopped paying regular premiums and your fund value is less than your original annual regular premium amount. You can make lump sum partial withdrawals from your funds at any time within the policy term chosen provided. ignoring all top-up premiums paid in the three years before the maturity date. whichever is later.If you stop your regular premium commitment before three years have passed. . From the fourth year onwards You can choose to surrender the policy at any time and the surrender value will be the value of the units in the fund. Where the beneficiary is less than 18 years of age. The compounding effect of these regular addition is expected to boost your final maturity value. the benefit will be paid to the Appointee. when taken together are structured to give you better returns and value for money over the long term. These funds will be paid out to you only at the end of the third year or the end of the revival period of 2 years. your life cover will cease and funds will be held in suspense after deduction of surrender charges. • The minimum withdrawal amount is Rs. CHARGES The charges under this policy are deducted to provide for the cost of benefits and the administration provided by us. LOYALTY UNITS At the end of every policy year we will increase the number of units in each of your funds by 0. 10000. • After the withdrawal. the funds does not fall below the sum of top-up premiums paid in the preceding three years.10% as long as your policy is in force or paid up.

Mortality and other Every month we make a charge for providing Risk Benefit Charges* you with the death or critical illness cover (which includes the SA plus a value of the future premiums payable) in your policy. We take the charge by canceling units proportionately from each of the funds you have chosen. Premium Paid During Year (Rs. 20 per month is charged to Charge cover regular administration costs. We take the charge by canceling units proportionately from each of the funds you have chosen.PREMIUM ALLOCATION CHARGE This is a premium based charge. The tables given below will help show how percentage of your premium is used to buy units. Switching Charge 24 switching will be given free in a policy year . the allocation rates are guaranteed for the entire duration of the policy term. OTHER CHARGES The following is the set of other charges that we will take from your policy.) Upto 199999 From 200000 to 499999 From 500000 to 999999 From 1000000 to 1999999 From 2000000 and above Single Premium Top-Up(s) Regular Premiums Allocation Rate 1st year 40% 60% 70% 80% 90% 97. The daily unit price already includes our low fund management charge of only 0. After deducting this charge from your premiums. the key to building great maturity values is a low FMC. SURRENDER CHARGE This is the charge we will apply when the policy is surrendered. It is equal to 60% of the difference between the regular premiums expected and received in the first year of the contract. Charges Explanation Policy Administration A charge of Rs.50% 2nd year onwards 99% 99% 99% 99% 99% 99% FUND MANAGEMENT CHARGE (FMC) In the long term. This percentage is called the Allocation Rate. the remainder is invested to buy units. The amount of the charge taken each month depends on your age.80% per annum of the fund’s value.

12 premiums redirection request will be free in a policy year and any additional premium redirection request will be charged Rs.and any additional switch will be charged Rs. 250 per request. 100 per switch Partial Withdrawal 6 partial withdrawal requests will be free in a charge policy year and any additional partial withdrawal request will be charged Rs. 250 per request. 250 per request Revival Charge A charge of Rs. 6 policy servicing requests will be free in a policy year and any additional policy servicing request will be charged Rs. LIFE INSURANCE CORPORATION PROFILE OBJECTIVES:- . 250 is charged for revival to cover for administrative expenses Miscellaneous Charge This is a charge levied for any alterations within the contract like premium redirection or adhoc policy servicing.

without losing sight of the interest of the community as whole. The primary obligation to its policy holders. in the investment of funds. Conduct business with almost and with the full realization that the money belongs to the policy holders.Spread Life Insurance much more 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 responsible cost. Promote amongst all agents and employees of the corporation a sense of participation. Bear in mind. whose money it holds insurance trust. Act as trustees of the insured public insurance their individual and collective capacities. VISION:“A Tran-nationally competitive financial conglomerate of significance to Society & ride of India”. Maximum mobilization of people’s savings by making insurance linked savings adequately attractive. pride and job satisfaction through discharge of their duties with dedication towards achievement of corporate objective. MISSION:“Explore and enhance the quality of life of people through financial security by . keeping insurance view national priorities and obligation of attractive return. Involve all people working insurance their individual and collective capacities. Involve all people working insurance the corporation to the best of their capability insurance furthering the interest of the insured public by providing efficient service with courtesy.

basic Sum Assured plus th bid value of the units become payable by LIC provided life cover option is exercised. The facility for top-ups (additional premium can be paid to invest insurance the funds with no upper limit) and of course to opt for early pension (40 years onwards). o Future Plus. critical illness rider etc. the customer gets a pension on accumulated bid value of the units allotted under the plan. No. the bid value of the units become payable to the nominee. o It can be taken as a single premium policy or under regular premium payment mode i. Else. o On death of the customer during the deferment period.e. yearly or half-yearly. . The nominee can also opt for a pension insurance lieu of lump sum death claim amount. and by rendering resources for economic development”. o The vantage pints of the plan are the Auto cover on the plan (keeps the policy insurance force even if premiums are not paid subject to certain conditions). o The plan comes with a host of riders like accident benefit rider. which are to be opted at the time of taking the policy. a deferred pension plan is available with or without life cover. Products: FUTURE PLUS LIC’S Future Plus (T. Option is available to commute up to onethird of the fund under the units at the time of vesting.providing products and services of as pried attributes with competitive returns. 172) is a unit Linked Pension Plan bundled with lots of options with insurance built flexibility. o On vesting. o The policy can be surrendered at no loss on the bid value of the units after two years of policy existence and a small charge up to a maximum of 4% of levied if surrendered within two years.

Growth fund is available for risk loving customers. 1. The minimum annual premium will be Rs. based on the customer’s choice and risk taking ability. Alternatively. 1000. o Bond fund and income fund are available for risk averse customers where major portion of the fund is invested insurance Govt.o Persons insurance the age band of 18-65 years are eligible to take Future Plus. The plan extends the Insurance come tax benefits u/s 80 CCC (i). a single premium can be paid subject to a minimum of Rs. Balanced fund is also available to customer who wish to strike a balance between the above two. 1000. securities and other secured bond/income funds. The policyholder’s Unit account will be subject to deduction of charges as specified insurance the Policy Conditions. The allocated premiums will be applied to purchase units as per the Fund type. 1000 and thereafter insurance multiples of Rs. Chosen. o The minimum and maximum vesting age offered is 40-75 years. 10000 and Rs. Benefits: . 5000 per annum under regular premium mode. o The minimum premium payable under single premium mode is Rs. o The plan is priced at competitive charges on administrative and fund management fronts with nil bid-offer spread. The minimum policy term is five years. Especially for those who aspire for rewarding returns as major portion of the found would be invested insurance equity markets. o Future Plus comes with options to invest in any of the four types of funds. The value of the unit insurance the Unit Fund may increase or decrease. depending on the investment return of the assets representing the chosen fund.increasing thereafter insurance multiples of Rs. 2. 5000/. Premiums: Regular premium can be paid either insurance yearly of half-yearly installments.

the Policyholder’s Unit Account at the time of . In case the policy is taken without risk cover. the Sum Assured under the Basic Plan are as under:For Single Premium Policies: Equal to the Single Premium For Regular Premium Policies: 5 to 20 (integer) times of the annualized premium as per the option exercised by the propose. However. which will be based on the than prevailing immediate annuity the relevant annuity option. the nominee will get the sum Assured under the Basic Plan together with the Bid Value of units held insurance the Policy Holder’s Unit Account either as a lump sum or as pension on his/her life-the actual amount of the pension will depend on the then prevailing immediate annuity rates under the annuity option chosen. then the Bid value of the units held insurance the Policyholder’s Unit Account shall be payable either as a lump sum or as a pension on his/her life.e. Cover of 5 times the annualized premium. the maximum life cover shall not exceed the annualized premium multiplied by the term subject to a minimum life. If the policy is insurance lapsed condition.A) Death Benefit: Insurance case of death of the policy holder within the policy term. However. B) Benefit on vesting: On the policy holder surviving to the date of vesting. the Policyholder may opt to commute upto one third of the Bid option. The limits on life cover i. when the life cover is opted for and is in force. the Bid Value of the units held insurance the policyholders unit account will compulsorily be utilized to provide a pension based on the tern prevailing immediate annuity rates under the relevant annuity option. However. than also the Bid Value of the units held in the policyholders unit account shall become payable to the nominee. either as a lump sum or as a pension on his/her life which will be based on the than prevailing immediate annuity rates under the relevant option.

The Accident Benefit rider option will not be available insurance case Basic Sum Assured under the Basic Plan.50 p for every Rs. Options: A) Accident Benefit Option: Accident Benefit can be availed as on optional Rider benefit by paying an additional premium of Rs. 4. the critical Illness rider option will not be available in case Sum Assured under the Basic Plan is zero. 25 lakh under all policies of the Policyholder with the Corporation taken together. a sum equal to the Accident Benefit cover is opted for and is insurance force. On Accidental death of the Policyholder’s during the term of the policy. 3.of the Accident Benefit Sum Assured per policy year by cancellation of appropriate number of units out of the Policyholder’s Unit Account every month. ELIGIBILIGY CONDITONS AND OTHERS RESTRICTIONS: For the Basic Plan: (a) Minimum Age at entry (b) Maximum Age at entry (c) Minimum Age at vesting (d) Maximum vesting Age 18 years completed 65 years (age nearer birthday) 40 years (age last birthday) 75 years (age last birthday) . The maximum cover to this rider will be Rs. Insurance case communication is opted for. subject to an overall limit of Rs. 1000/. The Critical Illness Rider Sum Assured shall also not exceed the Sum Assured under the Basic Plan. which shall be period as a lump sum. B) Critical Illness Benefit Rider: An amount equal to the critical Illness Rider Sum Assured will be payable in case of diagnosis of defined categories of Critical Illness subject to certain terms and conditions. There will also be an option to purchase pension form any other insurance company subject to Regulatory provisions.vesting of the annuity. 0. 5 Lakh under all policies of the Policyholders with the Corporation taken together. the amount of annuity/pension available will be reduced proportionately. So. provided the Critical Illness Benefit cover is opted for an is insurance force.

50000 (e) Maximum Sum Assured under Critical The maximum Critical Illness Rider Sum Assured shall be of Rs. for Regular Premium (g) Sum Assured under the Basic Plan (where Life Cover is opted for)Single Premium Regular Premium Equal to the Single Premium 5 to 20 9integer) times of the annualized Premium as per the option exercised by the proposed However. 50000 provided the Sum Assured under the Basic Plan is more than or equal to Rs. 10000 for Single Premium Rs. Critical Illness Benefit Rider Option: (a) (b) (c) (d) Minimum Age at entry Maximum Age at entry Maximum Maturity Age Minimum Sum Assured 18 years completed 50 years (age nearer birthday) 60 years (age nearer birthday) Rs. 500.a. Accident Benefit Rider Option : Illness Benefit Rider Option . 5000 p. the maximum life cover shall not exceed the annualized premium multiplied by the term subject to a minimum life cover of 5 times the annualized premium. critical illness riders under all policies of the Policyholder with the Corporation and the Critical Illness Benefit option under the new proposal into consideration.000 taking.(e) Minimum Policy Term - 5 years for both Single Premium and Regular Premium policies (with and without Risk Cover) (f) Minimum Premium - Rs.

/Govt. 6. Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of purchase of units. Various types of fund and their investment pattern will be as under: Fund Type Investment insurance Short term Investment insurance Govt. Insurance case no fund has been opted from the allocated premiums shall. Securities money market instruments (including Govt. There is no Bid-Offer spread (the Bid price . 2500000 taking Accident Benefit under all policies of the Policyholder with the Corporation and the Accident Benefit Sum Assured under the new proposal into consideration. 25000 provided Sum Assured under the Basic Plan is Rs.(a) Minimum Age at entry (b) Maximum Age at entry (c) Maximum Maturity age (d) Minimum Sum Assured (e) Maximum Sum Assured - 18 years completed 65 years (Age nearer birthday) 70 years (age nearer birthday) Rs. 5. by default. Investment of Funds: The premiums allocated toi purchase units will be strictly invested according to the investment pattern committed insurance various fund types. Guaranteed investment such as Listed Equity Share. under Accident Benefit Option – The Maximum Accident Benefit Sum Assured shall be of Rs. 25000 or more. Securities) Not less than 0% 100% Nil Not less than 70% Not less than 60% Not less than 30% Not more than 90% Not more than 80% Not more than 50% Not more than 20% Not more than 3% Not more than 60% (i) Bond Fund (ii) Income Fund (iii) Balance Fund (iv) Growth Fund The Policyholder has the option to choose any One of the above 4 funds. be invested insurance the INCOME FUND.

The NAV will be computed based on investment performance under each fund type and shall be calculated as under: Market/Fair value of the chosen fund’s underlying assets plus Current Assets.9150 0.9750 Allocation Rate for Top-up (Additional premium) 0.9835 * Under Single Premium Policies an amount equal to (1-the allocation rate) times the Single Premium will also be deducted at the First Policy anniversary by canceling an appropriate number of units form the Policyholder’s Unit Account.9875 II) Other Charges: the following charges shall be deducted by canceling appropriate number of units out of the Policyholder’s Unit account: . accrued income (net of Fund Management charge and other outgo) Less Current Liability and Provisions Net Asset Value = Number of Units existing insurance the fund at the valuation date 7.9775 0.8950 0. Premium Band 5000 to 9000 10000 to 19000 20000 to 49000 50000 to 99000 100000 to 499000 500000 and above Allocation Rate First Year & 2nd Year 0.9815 0.9750 0.9750 0.9750 0.and Offer price of units will both the equal to the NAV).9200 Thereafter 0.9700 0.9750 0.9750 0.9075 0.9175 0.8700 0.9600 0. Charges under the Plan: I) Allocation Rate: The allocation applicable to the premium to determine the part of premium utilized to purchase units in the Policy holder’s Unit Account will depend on whether the policy is a Single Premium or Regular Premium contract and on the premium size as under: Single Premium: Premium Band 10000 to 19000 20000 to 49000 50000 to 99000 100000 to 499000 500000 and above Allocation Rate* 0.

15/. and shall be taken by canceling appropriate number of units on a monthly basis as and when the corresponding life cover. 0. Critical Illness and Accident Benefit charges are deducted. 0. of Unit Fund for “Bond” Fund 1.25% p. Accident Benefit and Critical Illness Benefit charged.a.50% p. iv) Policy Charge: Rs.a. The level of this charge will be as per the rate of Service Tax premium if any as applicable form time to time.i) Life cover and Critical Illness Benefit rider charge_ Charges for live cover and critical Illness Benefit will be taken every month by canceling appropriate number of units out of the Policyholder’s Unit Account as per the rate prevalent at the time of policy issue or as amended by LIC form time to time based on actual experience. vi) Flat Fee Rs. 1% of sum Assured under the Basic Plan Subject to a maximum of Rs.a. 1000 insurance each of the first 2 years. the Policy charge insurance each of the first 2 years will be equal to Rs. insurance case no life cover is opted for.50 per thousand Accident Benefit Sum Assured per policy year by canceling appropriate number of units out of the policyholder’s Unit account.per month will be charged throughout the term of the policy by canceling appropriate number of units out of the Policyholder’s Unit Account. ii) Accident Benefit Charge: Rs..10%0 ot the total premiums payable throughout the policy term. III) Fund Management Charge: Fund dependent deductible on the date of computation of NAV: 1.If live cover is opted form then there will be an Administrative charge of Rs. v) Service Tax Charge: This charge shall be levied on the life cover.10%. of Unit Fund for “Growth” Fund .00% p. 0. Where risk cover is opted form insurance each of the first 2 years. if any. of Unit Fund for “Income” Fund 1.0 Sum Assured under the Basic Plan. of Unit Fund for “Balanced” Fund 1.a.00% p. iii) Administrative charge:.

i) ii) iii) iv) Policy charge will be fixed depending on the amount prescribed by the Fund Management Charge: The maximum for each Fund will be as Bond Fund : Income Fund: Balanced Fund : Growth Fund : 2. if any. The modification insurance charges will be done with prospective effect with the prior approval of IRDA after giving the policyholders a notice of 3 months. as and when such a need may arise. including the right to charges the manner insurance.a. 2000 insurance each of the first 2 8. if any.IV) Bid/Offers Spread-Nil V) Right to reserves the right to service all or any of the above charges. of Unit Fund 2. In case a policyholder does not agree with the modified charges.0% p. he/she shall be allowed to withdraw the Bid Value of the Units held insurance his/her Unit Account without any surrender charge. which charges are to be recovered.a.0% p. Surrender Charge: The Surrender charge will be under: i) Single Premium Duration since date of commencement Less than 1 Year : 1 year or more but less than 2 years 2 years or more : Surrender Charge 4% of Bid value of the units held 2% of Bid value of the units held Nil . They will be subject to the following maximum limits: years. of Unit Fund 2.a.0% p. Although the charges are review able. of Unit Fund Indian Stamp Act. 2%0 Sum Assured under the Basic Plan. 50 per month Administrative charge shall not exceed Rs. subject to a maximum of Rs. the Corporation may also introduce new charges. 1989 follows: Flat fee will be subject to a maximum of Rs. of Unit Fund 3.a.5% p.

For regular premiums policies.e. During the period of Auto-cover any/all unpaid premiums that have fallen due may be paid at anytime without interest. the policy will lapse. Surrender Charge 60% of Bid Value of the Units held 40% of Bid Value of the units held . the risk cover will cease i. Partial Surrender: No partial surrender of units will be allowed under this plan. then charges for the same shall be taken by canceling an appropriate number of units out of the Policyholder’s Unit have not been paid as and when due under the policy. However. as per the Sub-section of 80 CCC of the Income Tax Act. Other Features: i) Auto-cover: if the policyholder has opted for risk cover.ii) Regular Premium Number of years premiums have been paid If one full year’s premium or less are paid If more than one full year’s but less Than 2 full years premium are paid If 2 or more full years premiums are paid: Tax Implication on Surrender Currently. Thereafter. the Auto-cover facility will compulsorily be available only for a period of 6 months from the due date of the First Unpaid premium. when 3 ore more year’s premiums have been paid. by paying all unpaid premiums without interest and on submission of proof of continued insurability to the satisfaction of the Corporation. for Regular premium policies where less than 3 year’s premiums have been paid. 1961 any amount taken on account of surrender under the above plan shall be chargeable to tax as income in the year of surrender. 9. the Auto-cover facility will compulsorily be available throughout the term of the policy. the Policyholder shall have the option of reviving the policy within period of 5 years from the due date of the First Unpaid Premium. In such cases.

Subsequent switch in that policy year shall be subject to a switching charge of Rs. the policy shall compulsorily be terminated and the balance amount in the Policyholder’s Unit Account will be refunded to the Policyholder. net of all charges and deductions. However. In case the Policyholder’s Unit Account falls below this limit. shall be subject to a minimum balance of one year’s annualized premium in the Policyholder’s Unit Account. ii) Top-up (Additional Premium): The policyholder can pay additional premium in multiples of Rs.Notwithstanding what is stated above. iii) Switching: The policyholder can switch between any funds types during the policy term within a given policy year 4 switches will be allowed free of charge. 100 per switch. iv) Increase/decrease of benefits: No increase (Except to the extent of Top-up stated above) of benefits will be allowed under the plan. for all Regular Premium Policies where at least 3 years premiums have been paid. will have a guaranteed minimum growth rate of 3% p. The Policyholder can. provided all due premiums under the policy have been paid. 1000 without any limit at anytime during the term of the policy. the policyholder’s Unit Account. decrease the risk cover once in a year during the Policy term. at all times. the allocated premiums. at all times. however. In case of yearly or half-yearly mode of premium payment such Top-up can be paid only if all premiums have been paid under the policy. provided the minimum policy term is 10 years and the policy is held till the vesting date without any switching to any . should be sufficient to cover the relevant charges. v) Conversion to annuity at Vesting Date: The rate at which the amount at vesting date will be converted to an annuity is not guaranteed and will be based on the prevailing immediate annuity rates under the relevant annuity option at the vesting date. vi) Minimum Guaranteed Growth Rate: For the “Bond” fund. compounding yearly. subject to the respective minimum limits.a. the balance in the Policyholder’s Unit Account.

10. Further. Loan: No loan will be available under this plan. Cooling off period: If policyholder is not satisfied with the “Terms and Condition” of the policy. 12. All benefits under the policy are also subject to the Tax Laws and other Financial enactments as they exit from time to time. 13. 15 Exclusion: No risk claim will be paid in case the Policyholder commits suicide (whether sane or insane at the time) at any time on or after the date on which the risk under the . The guarantee shall not apply to any Top-up premiums paid under the policy. There will be no guarantee under other funds. he / she may return the policy to us within 15 days from the date of receipt of the Policy Bond.other fund in between. the Policy shall become paid-up. Assignment: No assignment will be allowed under this plan. vii) Paid-up Value: If premiums are payable either yearly or half-yearly and the same have not been duly paid under the Policy. Revival or reinstatement: In case of lapsed policy. 11. by paying all unpaid premium without interest and on submission of proof of continued insurability to the satisfaction of the Corporation. the value of units within each Fund can go up or down depending on different factors affecting the capital markets and may also be affected by changes in the general level of interest rates and other economic factors. 14. Risk borne by the Policyholder: The Value of the units and hence the Benefit relating to the policyholder’s unit account is subject to market and other risk and there can be no assurance that the objectives of any of the above funds will be achieved. the Policyholder shall have the option of reviving the policy at any time during the premium paying term but within a period of 5 years from the due date of the First Unpaid Premium.

iii) The main objective of the Illustration is that the client is able to appreciate of the product and the flow of benefits in different circumstances with some level of quantification. These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance. life style and occupation point of view) life.a.” i) This illustration is applicable to a non-smoker male/female standard (from medical. . In other words. or 10% p. The Projected Investment Rate of Return is not guaranteed. 16. as the case may be. (Scenario 2) respectively. Benefit Illustration: Statutory warning “Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your life insurance company. in preparing this benefit illustration. subject to deduction of the charge for premature surrender as mentioned under Section 8 above.a. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed investment returns.a. If your policy offers guaranteed returns then these will be clearly market “guaranteed” in the illustration table on this page. ii) The non-guaranteed benefits (1) and (2) in above illustration are calculate so that they are consistent with the Projected Investment Rate of Return assumption of 6% p. (Scenario 1) and 10% p. it is assumed that the Projected Investment Rate of Return that LIC1 will be able to earn throughout the term of the policy will be 6% p. Dating Back: No dating back of the Policy will be allowed under this plan..a.policy has commenced but before the expiry of one year from the date of commencement of risk under this policy and the Corporation will not entertain any claim by virtue of this policy except to the extend of the Bid value of the Policyholder’s Unit Account on the date of death.

as an inducement to any person to take out or renew or continue an insurance insurance respect of any kind of risk relating to lives or property insurance India. (2) Any person making default insurance compiling with the provision of this section shall be punishable with a fine. However. SECTION 41 OF INSURANCE ACT 1938 (1) No person shall allow or offer to allow. any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy nor shall any person taking out or renewing a policy accept any rebate except such rebates as may be allowed insurance accordance with the published prospectuses or tables of the insurer provided that acceptance by an insurance agent of commission insurance connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfied the prescribed. Conditions establishing that he is a bona fide insurance agent employed by the insurer.iv) The maturity sum shown in the Illustration is to be annuities. which may extend to 500 rupees. INTRODUCTION . the policyholder can opt to take up to one-third of the maturity sum as a tax-free lump sum. either directly or indirectly.

DETAILS OF PRUDENTIAL PLC:Prudential Plc was founded in 1848 . was established in 1955 by world bank.2000. to promote industrial development of India by providing project and corporate finance to Indian Industry. Becoming one of one of the few private sector players to enter the liberalized arena. it commenced commercial operations on Dec. Since inception. of India and the Indian Industry. ICICI PRU Life Guard . since then it has grown to become one of the largest providers of a wide range of saving products for the individuals including life insurance. 24. covering 6848 companies and 16851 projects.2000.ICICI Prudential Life Insurance Corporation Ltd. Asia has always been an region for prudential and it has had a presence in Asia for 75 years. annuities m unit trust and personal banking. way back in 1923 to establish Life and General Branch agencies. It has presence in 15 countries. 1. Prudential is the largest life insurance company in the United Kingdom. this company is a joint venture of ICICI (74%) and Prudential plc UK (26%) The company was granted certificate of registration for carrying out life Insurance Registory and Development authority on Nov. Smart Kid 4. DETAILS OF ICICI:This is Indian participate company of this insurance Co. 19. ICICI Ltd. an caters to the financial needs of over 10 millions customers. ICICI has thus far financed all the major sectors of the economy. ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. Save ‘n’ Project 2. the govt. was incorporated on 2007-2002. In fact prudential first Overseas operation was in India. pensions. Cash Bank 3.

100.  Benefits can be enhanced by adding Accident & Disability Benefit. Balancer or Protector fund ) after deducting mortality charges and administrative expenses. the product offers a lot of flexibility. The amount of premium towards to wards death benefit decreases with the increase in the value of the units.  The returns depend on the plan chosen.  Entry into the plan will be based on the Unit Value applicable on the date of policy issue. Once in a year switching is done free of cost. .growth.00 every third year opto 3 times. Life Time Pension ICICI Pru Life Time (ICICI PRU Life) Suitability o This policy is a long term market linked total protection plan.  One has the flexibility to increase the death benefit by 25% subject to a maximum of Rs.5. The plans offer projections for life at the same time allows the policyholder to get market linked returns. This apart.  Policy holder has the option to vary the amount of insurance projection visà-vis investment while maintaining the same premium. Death benefit can be increased beyond this limit with underwriting. Major Surgical Assistance.  Premium paid will be invested in the fund chosen ( Maximiser. Salient Features  Death benefit will be a multiple of premium paid. Balanced and income and one can switch from one fund to another depending on the financial priorities. Critical Illness benefits at a nominal extra premium. It is a single product combining the benefits of both an investment product and insurance plan. Without any underwriting.

 Apart from the above the policy holder can increase the death benefit at different state of life such as Marriage. Policy holder has the option to increase the investment by the way of top ups with a lump sum payment at any time. You can long-term capital appreciation from a portfolio that is invested primarily in equity and equity-related securities. 100. One can decrease the death benefit in the multiple of Rs. birth of first child and birth of second child. Protector (Income) Plan  If on the other hand your priority is steady returns. Here you can accumulate a steady income at a low risk across a medium to long term period. If after at least 3 years premium payments are made and then one is unable to pay the subsequent premiums towards the life cover under the policy will continue and the premiums towards the life cover and riders will be debited from the unit fund. Maximiser (Growth) Plan  If high growth is your priority this is the plan for you. you can opt for the Income Plan. 100. This is irrespective of when the last increase was done. Unit value is calculated bi-weekly on a forward pricing basis every Tuesday and Friday Unit Value= Market/Fair Value of the relevant Plan’s Investments plus Current Assets less Current Liabilities and Provisions      -----------------------------------Number of units outstanding under the relevant Plan * The returns depend on the plan chose.00 has to be maintained. However a minimum death benefit of Rs.00. Balancer (Balanced) Plan .

sum assured under the rider is paid and the rider comes to and end. beneficiaries will be paid the higher of death benefit and value of the units. subject to a maximum of 50% of SA. Other Conditions  Minimum age at entry : 0 year . Minor Surgical Procedure – 2% SA Claims can be made for more than one surgical procedure. On admission of a claim. Claim under this rider is not admissible during first six months of the policy. Riders Accident & disability benefit  10% of SA each year for 10 years in case of permanent total disability  Additional SA. if death is due to an accident while traveling as a passenger in train or bus. Critical Illness Benefit  9 medical conditions are covered. If you prefer a balance of growth and steady returns choose our Balanced Plan. Intermediate Surgical Procedure – 30% of SA 3.  43 surgical procedures are covered 1. This would ensure that your portfolio is invested in equity and equity linked securities as well as in fixed income securities. Benefits On Death  In the event of death of the policyholder. Major Surgical Procedure – 50% of SA 2. On Survival  There is no maturity period and policy holder has the option to withdraw units under the plan at anytime after the policy has been in force for three years. claim under this rider is not allowed during first 6 months of the policy.

 Other charges: Annual administrative charges of 1. of the net assets for Maximiser and Balanced.  Mortality charge towards death benefit  Initial charges of 1% on Top ups  One free switch every year after which a switching fee of 1% of the switching amount will be levied. 18000 per annum  Minimum sum assured under riders: Rs. of the net assets for protect (Income) and 1.a. 100000  Maximum sum assured under riders : Rs. Any unutilized free switch cannot be carried forward. 50000/.for premiums equal to or more than Rs.00% p. Note: In case the unit value is inadequate to cover charges.a. the policy will terminate. 1000000 Following are the charges applicable under the policy:  The initial administrative charges in the 1st year would be 20% of the premium.5% p.a. Annual investment charge of 0. 50000/. for premium amounts less than Rs. .25% p. of the net assets for Protector and 1% p.a. Maximum age at entry: 60 years (completed years)  Minimum premium: Rs.it is 18% of the premium. for Maximiser (Growth) and Balancer (Balanced) options.

 The plan assures a minimum guaranteed amount on maturity.  The premiums paid.OM KOTAK INVESTMENT PLAN PRODUCT Suitability The policy is an investment cum endowment insurance plan. and suitable for people who are looking at investment option with good return and the security of the investment. . he would still get back the guaranteed Sum Assured thus protecting him from the adverse affects of market. are converted into units and invested in funds selected by the policyholder. net of charges. It provides access to a low risk portfolio and is useful when one wants to avoid the risks associated with long-term investments. Based on his risk appetite policyholder has the to choose any of the four funds offered under the policy  Money market Fund – A portfolio invested primarily in money market instruments and other short-term investments. Salient Features  This is an endowment cum plan and hence benefits are payable both on death and on maturity  Premiums paid are invested in capital markets providing the policyholder an opportunity to earn market linked returns.  This is a non participating plan. or in case of death. Policyholder can avail of all the profits from the markets and in case the market does not perform well.

Short Term Bank deposit / Call 0% money / Cash 60% 20% Low Medium Low to  Policy holder has the flexibility to switch the money (or a part of it) from one fund to the other is available. at daily declared selling and buying prices. / 20% Guaranteed by Central Govt. 80 D. premiums paid for Critical Illness Benefit qualify for rebate under Sec. units would be liquid dated at the prevailing selling price to meet the ridk and expense charges an policy would be in force. 1961 and the returns are fully Tax exempt under Sec 10 (10D).. the policy would be in force. on maturity.  The policy benefits can be enhanced by adding riders to it.Min.  The premiums paid under the plan will qualify for rebate under Sec. 88 of the Income Tax Act. The riders o Term / Preferred Term Benefit o Accidental Death Benefit o Permanent Disability Benefit available with the policy are:- . the residual value of uits would be paid as a benefit to the policy holder.   Loan can be availed provided the policy has been in force for 3 years Automatic Cover Maintenance facility: This facility keeps the policy in force even on non-payment of premium. However. Funds can be switched any number of times during the term of the plan. As long as the value of units is sufficient to meet the expenses. this facility is available only if the policy has been in force for a period of 3 years. investment Money Market Instruments / Bank 100% Deposit Equity shares of blue chip companies 40% Maximum 100% 80% Risk Profile Low Medium High to Securities issued by Central Govt. in case policyholder misses premium payments. Under this facility.

10 lakhs). Life Guardian Benefit: In case of the unfortunate death of the proposer. whichever is higher is payable. 10 Lakhs. this benefit keeps the policy alive by waiving all future premiums on the policy. On the first occurrence of critical illness during the term of the plan. subject to meeting eligibility requirements. policyholder would receive a portion of the sum assured to reduce your financial burden in this emergency.o Critical Illness Benefit o Life Guardian Benefit o Accidental Disability Guardian benefit Benefit On Maturity Full Sum Assured or the market value of the units. Permanent Disability Benefit: In case of permanent disability due to an accident. the beneficiary would receive and additional death benefit amount. The maximum amount of benefit one can avail is equal to the basic sum assured. 10 lakhs) Critical Illness Benefit:. the riders pays an additional amount.This benefit can be added to the basic life insurance plan to provide financial support in the event of medical emergencies. whichever is higher is payable Riders Term/Preferred Term Benefit: In the event of death during the term of this benefit. On Death Full Sum Assured or the market value of the units. which is paid out as an annuity. the maximum. permanent Disability Benefit that one Can avail of is equal to the basic sum assured (subject to a maximum of Rs. . Where the Term Benefit cover applied for is more than Rs. Better rates may apply. The maximum cover available under this benefit is equal to the basic sum assured (subject to a maximum of Rs. Accidental Death Benefit: This benefit provides an additional amount (over and above the sum assured) to the beneficiary in the event accidental death of the life insured. which is over and above the sum assure.

any pre-existing medical conditions not disclosed at inception. Critical Illness Benefit. hunting.2620 2. due to injuries from war (whether war is declared or not). and Accidental Disability Guardian Benefit q. committing any breach of law or being under the influence of drugs. insanity. Exclusions for Accidental Death Benefit. s. mountaineering. u. security or police organization. immorality. or having been on duty in military. suicide. invasion. yearly – 10000 Exclusions In case the life insured commits suicide during the first year of the plan. when the life insured / proposed is engaged in aviation or aeronautics other than as a passenger on a license commercial aircraft operating on a schedule route. motor racing of any kind. Unreasonable failure to seek or follow medical advice.Accident Disability Guardian Benefit: In case the proposer is permanently disabled as a result of accident. Permanent Disability Benefit. Self inflicted injuries. . r. this benefit keeps the policy alive by waving all future premiums on the policy Other Conditions  Minimum Age at entry : 18 years  Maximum Age at entry : 60 years  Maximum maturity age : 75 years  Term of the policy : 10-30 years  Minimum Premium 1. Liquor etc. other dangerous hobbies or activities. Quarterly – Rs. Additional Exclusions for Critical Illness Benefit t. para military. Half yearly – 5115 3. the beneficiary would not receive any of the benefits outlined in the plan.

/ Guaranteed by Central Govt.  Gilt Fund – the portfolio primarily consists of securities issued by or guaranteed by the Central Government of India. This fund is suitable for investors looking for growth and capital appreciation in the term. Short Term Bank Deposit / Call Money / Cash  Balanced Fund – A portfolio invested primarily in share of wellmanaged companies and in highly rates securities of Central Govt. Investment 80% 0% Maximum Investment 100% 20% Risk Profile Low Low Securities issued by Central Govt.v. infection with Human Immunodeficiency Virus (HIV) or condition due to any Acquired Immune Deficiency Syndrome (AIDS) w. no benefit would be paid in respect of the exclusions specific to each critical illness. Short-term investments will also be made with banks. There is no credit risk associated with this portfolio. Short Term Bank Deposit / Call money / Cash 0% Maximum Investment 60% 70% 20% Risk Profile Medium Low Low  Growth Fund – A portfolio invested judiciously in equity and equity related investments of well-managed companies. this portfolio offer you a balance of steady returns and growth. Min. In addition. Security will be enhanced through holdings in highly rated securities and short term deposits. Investment Equity shares of blue chip companies 30% Securities issued by Central govt. Min. suitable for investors looking for regular and steady income. / Guaranteed by 20% Central Govt. Infection with Human Immunodeficiency Virus (HIV) or condition due to any Acquired Immune Deficiency Syndrome (AIDS) x. .

 Policy fund is expressed in terms of units. Salient Features   This is a single premium. Builder or enhancer options for 5 year plan only protector option is available. This policy also provides life insurance cover. While for 10 year plan. This plan is similar to a mutual fund providing market linked returns with an added advantage of having no down side risk of capital erosion. suitable for people who seek market-linked returns and the same time are averse to any capital erosion.  Policy provides an insurance cover to the extent of 50% of premium paid or policy fund which ever is higher.   Policy is be offered for 10 and 5 years terms Policy holder has the option to choose the type of investment fund based on his risk appetite.BIRLA SUN LIFE PRODUCT Single Premium Bond (Birla Sun Life) Suitability  This is an investment plan. policyholder can choose from protector. Net Assets Value per of each investment fund is announced at least once in a week. unitized investment plan. .  Premium paid is invested in the fund chosen after deducting the administrative and other expenses.

 Term available : 5 and 10 years . Other conditions  Minimum Age at Entry : no age limit  Maximum age at entry : 70 years  Maximum age at Exit : 80 years  Minimum premium : Rs. On Death An amount equivalent to 105% of premium paid of policy fund which ever is higher is payable. Policyholder can surrender the policy and receive Policy fund cash value. Further benefits paid under the policy are entirely tax under section 10 (10D). 5000 thereof. a surrender charges of 25% of the premium paid is applicable. However if the policy is surrendered in the policy year.  Benefits Maturity Benefit On maturity of the plan (when the plan comes to n end) the higher of the Policy Fund of the Policy Premium will be paid. Premiums paid under the policy are eligible for tax rebate under section 88 of IT Act 1961. 25000 and multiples of Rs.

Comparative Analysis of Unit Linked Plan
S. No. 1 2 3 4 5 6 Company Name Plan Name Age Sum Assured HDFC Std. LIC Life Insurance Youngstar Future Plus ICICI Prudential Life Time Om Kotak Mahindra Kotak Sale Investment Plan 0 to 60 18 to 65 Min. 1 lac Subject to Max. 1 Crore minimum premium Min. 18000 Min. 10000 Max. no limit Max. no limit 3 years 3 years After 3 year partial or final min. Rs. 2000 After 3 year value is equal to NAV – 2.5% Birla Sun Life Classic Life 18 to 65 Min. 5 Lac. Sub. To pre. Amount Min. 25000 max. no limit One year Loans/surrender is allowed after one year min withdrawal of amount will have to be Rs. 25000 surrender charges is applicable first 75%

7

18 – 65 18 to 65 Min. 100000 Min. 50000 Max. no limit Max. No limit Premium Min. 10000 Min. 5000 Max. no Limit Max. no limit Lock in 3 years No lock period period Surrender After 3 years : Less than allowed no charges one year: before lock regular 40% period 25% of of bid value O/S amount single 96% of bid value more than one but less than 2 year regular 60% bid value single: 98% of bid value Death and On Death : On death maturity Sum Assured + some Annual Assured + premium is Bid value of given by unit held b HDFC as a policyholder bonus to is given on policyholder on maturity : Maturity: Lumpsum Market value market value

On death some assured or bid value of unit which ever is higher there is no maturity date

On death market value of fund or SA which ever is higher on maturity SA or market value

On death *higher of policy fund or the face amount reduce by all withdrawals made in the 6 month preceding the death of LA *

of Unit held by of unit held Policyholder is is given given 8 Fund option * Growth fund * Liquid fund * Secure fund * Defensive F. * Balance managed fund * Bond fund * Income F. * Balance F. * Growth F. * Protector * Balance * Maximiser * One free switchover every year there after 1% OP switching amount and buying price

9

Term Rider

For Accident * Critical Illness Max 2500000

Accidental allowed upto * Critical Illness * Major Surgical Max upto 10 Lac

10

Charges

Fund Management Charges–0.80% p.a. Administration charge – Rs. 15 per month Risk benefit charges Depends upon your age fund switching charging, premium redirection charges – after there years no charges cancellation charges – before three

The Accidental benefit charges 0.50% p.a. CIB Charges – depending upon age *flat – Rs. 15 p.m. * Admn. Charges – Rs. One% of SA * Switch over charges Rs. 100 service tax – 10.2%

Addition charges 1st year – 20% of premium is less then 50000 18% if premium higher then 50000 * 1% to 1.25% annual fund management charges

which ever in death of a is higher Minor before the year policy fund is payable * Money * Protector market * Builder * GILT * Enhancer * Balance * Creator * Growth * Switch over is * Switch allowed after over any one year form number one two times switches are during the free year at selling fund to another * Accident * Accidental benefit and permanent disability * Accidental benefit death and allowed dismemberment 80+40 Rider paise per * Critical thousand Illness * Critical * Critical Illness Illness Plus * Life Guardian * WOP on Pid Sales 1st year prm. st related 1 25000-49999year – 14% 15% 50000 – 2nd year 99999 – 14% onward one lac and 3.5% * above – 13% Admn subsequent year st charges 1 –4% * year – 7% Investment upto 20000 Management pre. And fee is 1% p.a. 3% there Protector, after Builder, * under Enhancer and writing 1.25% for charges Creator. based on age 0.2 to 0.6% * fund

year 25% of O/S premium

charges money market – 0.6% * Guilt fund – 1% Balance1.3% * Growth 1.5%

RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY 1. To know about the requirement habits of the people in the region of patiala. 2. To know about the views of people regarding various Insurance Companies. 3. Position of the Insurance companies in the mind of the consumer. 4. Position of the Insurance Competition regarding various Insurance Companies. 5. To find out the position of Insurance Companies in the market. LIMITATIONS:1. Most of the people are not interested to give the right data. 2. Some people don’t know about the private companies. 3. A span of 6 weeks training was too short for survey

Life Insurance Om Kotal Mahindra LIC Birla Plus %age 80% 75% 5% 90% 10% Birla Plus E LIC D ICICI A Om Kotal Mahindra C HDFC Std. Life Insurance B . A B C D E Particulars ICICI HDFC Std. No.Awareness of the various Insurance companies:S.DATA ANALYSIS AND FINDINGS:Respondent Profile:Respondent profile has been analysed:Ques 1:.

A B C Particulars Necessity for protection security Imposition of an burden of expenses A compulsory tool for tax saving %age 89% 5% 78% A com pulsory tool for tax saving C Im position of an burden of expenses B Necesaity for protection security A .What the people think about the Insurance S. No.Respondent response about the awareness of the insurance comapneis Ques 2:.

No. A B C D E Particulars TAX SAVING PROTECTION PENSION INVESTMENT %age 90% 75% 80% 25% 35% Ques 4:.What a respondents see while purchasing a Insurance from the Company.Ques 3:. A B Particulars Standing & Goodwill of the Company Product Range of the Company %age 90% 1% . S.Main consideration that a customer looks at while purchasing an Insurance policy. S. No.

E Communication and know ledge of the Rep. The monopoly of LIC has been broken because private Insurance companies came into the market.C D E F Advertisement being released by the Company 5% Services being given by the Company 80% Communication and knowledge of the 10% Representatives Returns of Bonus declared by the Company 85% A Standing and Goodw ill of the Co. 09% respondents are aware of privatization of Insurance Industry and 10% respondents do not know about private companies. . 2. C Advertisement being released by the Co. CONCLUSIONS FINDINGS AND RECOMMENDATIONS: 1. F Returns of Bonus declared by the Co. D Services being by the Co. B Product range of the Co.

75% people know about HDFC Insurance Co. 9. 8.3. The respondents are above 45 they believe in Public Insurance companies and those respondents who are less than 45 believe in Private Insurance companies. . 5. Now. and 15% people know about other companies. 4. 13. Most of the respondent said that private companies should not be trustworthy Most of the people go for Children benefit because of triple benefit. Advertisement should be done on television and especially posters and banners. 6. 2. SUGGESTIONS: 1. a days people preferred to invest the money in Insurance policy rather than in Banks because of better benefits of Insurance policies growth money with life cover. 10. HDFC has made its presence felt in the market in a short span of time. Some people believe only or preferred only Public Insurance Companies like LIC. As majority of the population of Patiala City belongs to the services class so they consider tax saving rather purchasing a life insurance The financial growth of private companies is much more Life Insurance companies The private companies always keep in touch with their customers with the latest information. 90% people know about LIC Insurance Company. Some people preferred to the private companies because of their better services. 12. 7. This will greatly help in raising awareness level. Insurance company should show more commitment with the customer. 11.

4. 9. They are the one who introduce the prospect to different policies. Private Insurance Companies give some discount to after the customer. * QUESTIONAIRE * (This Information is for our internal use only. Agents have got maximum influence on a customers. Private companies should work together to spread awareness regarding the benefit given by the Private companies.3. A public relation officer should be appointed in the company who with customers and their need. will not to be disclosed to any other organization / department) Consumer Behavior towards various Investment and Insurance Products. 5. The private company should create good relation and communication. So agents should be give fullfledged training and the training should be strict. 6. Private companies give better services to the customers comparatively to public companies. 7. Cross training should introduce in private companies. 8. They need extensive market advertisement about the additional benefit provided by them in comparison to the policies offered by LIC. A-STUDY . Private companies needs to the market their products better and should create greater awareness about their product and services. 10.

A6.4 A4. What are your financial needs in next 10-20 years.Name Telephone Occupation Marital Status Single Ø Married Ø Q. Address Age Annual Income (Age of Children if applicable) --------------------------------------------------------------------------------------------------Any There Insurance Companies. What are the main considerations that a customer looks at while purchasing an insurance policy. Q. which you are aware of ? What do you think Insurance Is ? Necessity for Protection and security Ø Imposition as an Extra Burden on expenditure Ø A compulsory Tool for Tax Saving Ø Q.5 A5. Q. Child Education Ø Marriage Ø House Construction Retirement Needs Saving Ø Protection Ø Pension Ø Investment . Why you want to buy another Insurance ? Tax Benefits Ø Savings Ø Other Ø If saving. Tax Ø Ø What would you see while purchasing an Insurance Policy from a Company ? Standing and Goodwill of the Company Ø Product range of the Company Ø Advertisement being given by the company Ø Services beings given by the Company Ø Communications and Knowledge of the representative Ø Returns and Bonus declared by the Company Ø Other Ø Please specify _________________________________ Q6. 1 Q. 2 A3.7 A7.

Q. name the Co. Are you aware about the Unit Link Plans beings launched by various Insurance Companies. 8 A.8. Yes Ø No Ø (If yes. and products) Any other comments : ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ (Thank You) .

BIBLIOGRAPHY Study Material Study Material Study Material Study Material Study Material Websites www.com //http//www/licindia.com www.com//http//www/hdfcinsurance www.com www.licindia.bimaonline //http//www/iciciprulife.bimaonline.iciciprulife.com HDFC Standard Life Insurance LIC ICICI Prudent Om Kotak Mahindra Sun Birla Plus .com //http//www.hdfcinsurance.