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What Is Insurance? Insurance is not necessarily an investment from which one expects to get one's money back, nor it is gambling. A gambler takes risks, while insurance offers protection
against risks that already exist. Insurance is a way to share risk with others. Since ancient times, communities have pooled some of their resources to help individuals who suffer loss. About 3,500 years ago, Moses instructed the nation of Israel to contribute a portion of their produce periodically for "the alien resident and the fatherless boy and the widow."Deuteronomy 14:28, 29. The Origins of Insurance Insurance has existed for thousands of years. A form of credit insurance was included in the Code of Hammurabi, a collection of Babylonian laws said to predate the Law of Moses. To finance their trading expeditions in ancient times, ship-owners obtained loans from investors. If a ship was lost, the owners were not responsible for paying back the
loans. Since many ships returned safely, the interest paid by numerous ship-owners covered the risk to the lenders. It was likewise in a maritime setting that later one of the world's most famous insurance providers, Lloyd's of
London, was born. By 1688, Edward Lloyd was running a coffeehouse where London merchants and bankers met informally to do business. There financiers who offered insurance contracts to seafarers wrote their names under the specific amount of risk that they would accept in exchange for a certain payment, or premium. These insurers came to be known as underwriters. Finally, in 1769, Lloyd's became a formal group of underwriters that in time grew into the foremost market for marine risks. What if I already have Life Insurance? As an individual, for the extent of financial protection you need is different from that as a married man which in turn is different from that as a parent. At each life stage, it is necessary to re-evaluate the amount of protection and provision you require and adjust for the same. Below are some of the events in your life for which you should reevaluate and plan your life insurance needs.
Life stages Marriage Birth of a child Schooling of child College education of child Marriage of child Retirement
How much insurance do I need? The main purpose of life insurance is to provide a financial cushion to your loved ones in the event that something unfortunate should happen to you. One must provide enough, so as to generate a future income stream that will take care of the financial needs of their
dependants. How much insurance you need depends on your annual income, your expenses and your existing assets. Concept of Human Life Value Generally speaking, one can estimate the extent of life insurance by calculating one's "Human Life Value" (HLV).
This is the net present value of one's future earnings. Put simply, it is the amount that a person's family would permanently lose, should anything unfortunate happen to that person. As a thumb rule, a 30-year old should insure oneself for about 8 times his or her annual income. At 35, this is about 6 times. Of course, the exact amount must be adjusted according to the number of dependents, existing investments and one's life stage. For instance, if at 30, a person has two children and parents to provide for, the amount of insurance should also be higher.
multiplying your current annual income with the number of years remaining for your retirement.-Let's assume that you are 30 years old and you earn Rs. 4,00,000 per annum. Now, if your retirement age is 55 you have 25 years to go before retirement. So your Human Life Value is (25 x 4,00, 000) = Rs. 100, 00, 000 (One Crore rupees).
So, your present Human Life Value is one crore rupees, provided you stay healthy. If you take factors like inflation and increase in income over a period of time into account, your Human Life Value is a lot more. THE HISTORY OF INSURANCE IN INDIA: The Indian Insurance market has a grand history. The development of insurance dates back of the 19 t h century when the Europeans started the Oriental Life Insurance Company, Calcutta in 1888. The first Indian Insurance Company Bombay Mutual Life Insurance came into
existence in 1870 to cover Indian lives at normal rates. The year 1870 is also important in the sense at British Government for the first time act that year. Four years later Firoz Shah Mehta one of the doyen of Indian Financial Sector, Oriental Government established the Oriental
Government Security Life Assurance Company and after that, many Insurance companies in surfaced on Indian soil. However, the first Indian Insurance act was passed on 1912, again in 1938 and an amendment in 1950, when it was nationalized however the sector was once again thrown
open to the private sector in December 1999 followed by the establishment of I.R.D.A. (Insurance Regulatory and Development Authority) in April 2000. The Indian Insurance Industry was dominated by two states Insures i.e. The Life Insurance Corporation in Life Insurance and The General Insurance Corporation in general insurance before 2000 which were created after the nationalization of the Life and non Life sector in 1956 and 1972 respectively. In Dec’99, the IRDA Act was passed which limited foreign investors to a 26% cap on equity participation, and minimum capital requirement of $20 Million. At present, more than 12 private players are in the market and some are in the pipeline. The advent of the new kids poses to LIC to somewhat extent, for which LIC will have to change its current policies regarding marketing and product management.
THE LIFE INSURANCE SCENARIO IN INDIA: Since 1956, with the nationalization if Insurance
Industry, the states run Life Insurance Corporation of India (LIC) has held the monopoly in country’s life insurance sector. General Insurance Corporation of India (GIC), with its four subsidiaries, was its counterpart in the casualty sector. Over the time, taking advantages of its monopoly and virtual prerogative in establishing the premiums, LIC has evolved into a monolith. With around 60,000 agents in every nook and corner of the vast country, it has created an enviable brand name, particularly among the rural population of the country. It has around $40 billion as its financial sector. However, on the qualitative side, it has every little pride in, And there lies the potential for players to challenge this behemoth. As typical with monopolies, the premiums rates
charged LIC are among the highest in the world, and its track record in customer service can at best be called shabby. With a huge unionized, rigid workforce mostly in clerical category. LIC run the risk of high fixed cost, which will be the deciding factor productivity in the competitive scenario. While boasting full-scale automations of its operation, the truth is that its technology outdated. The new p[layers, with the state- of-the- art technology under the
business is procured by 20% of its ill-trained agent force. The foreign player, with the domestic partner’s string brand value, can test the unconventional distribution channels like brokers, the Internet, the banking distribution system etc., although foreign players may be tempted to keep their operations in big cities for the ‘cream layer’ of the society, the real market lies in rural India, which accounts for the lions share of LIC’s present business. The foreign players must adapt to Indian realities, the well published failures of the world famous consumer goods companies like Electrolux, Whirlpool, Reebok, Nike etc. to gauge the Indian psyche and sentiments demonstrate the concept. They failed in the area of realistic pricing, product promotion and reaching to the consumer. The foreign companies know the “ground realities” to the details.
WHY LIFE INSURANCE: Life Insurance has come a long way from the earlier days when it was originally conceived medium for short periods of tome. covering temporary risk situation, such as sea voyages. As Life Insurance became more established, it
was realized what a useful tool it was for a number of including TEMPORARY NEED / THREATS: The original purpose of the Life Insurance remains an important elements, namely for replacement of income on death etc.
Providing for one’s family and oneself, as a medium to long term exercise (through a series of regular payment or premiums). This has become more relevant in recent times as people sect financial independence for their family.
safeguarding it form the ravages of inflation. Unlike regular saving products, investment products are traidonailly lump sum investment, where the individual makes a one off payment. RETIREMENT:
Provision for later years become increasingly necessary, especially in a cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in one’s old age.
Let us take an example to understand the need for Insurance: Mr. Amit is 45 and self-employed. His wife Nandini, who is a housewife, looks after their two children aged 3 and 7 years. They stayed in a rented accommodation, where the rent is Rs.15000/- per month. Mr. Amit has taken a loan of Rs. 2 Lakh. His monthly earnings on average are Rs.40,000/-. Mr. Amit passes away in an unfortunate road accident. What are some of the financial implications of his death on his family? There may be several financial implications on his family. Some of these are: • The monthly income, previously provided would stop. • His wife and children may have to seek financial assistance other relatives. • His wife may not have enough money to pay back the loan of lakhs. • The families have to move into a cheaper accommodation. • The widow may have to take up work to earn money. • The education of their children may suffer.
This simple example illustrates the impact premature death can have on a family, where the main earner has no life cover. Had Mr. Amit taken a life cover, his family would not have faced such hardships in the event of his unfortunate death. A simple life insurance policy could have provided Mr. Amit’s family with a lump sum that could have been invested to provide an income equal to all or part of his income. In simple words, insurance protects against untimely losses. Insurance has been found useful in the lives of persons both in the short-term and long-term. Short term needs like sudden medical costs and long-term needs like marriage expenses etc. can be met with using life insurance. REVIEW OF INSURANCE SECTOR : India is having population of 1 Billion with a middle class population estimated up to 300 million. It being the 5th largest economy in the world in terms of Purchasing Power Parity (PPP) has a GDP growth rate of over 6% per year on an average for the last decade. The saving rate is estimated to be about 26% of the GDP. In the total population, the insured the population is estimated to be about 70 million. PRIVATIZATION OF INSURANCE : The Indian Insurance Sector has finally opened up and it is with much anticipation that new players are awaiting their share of market.
License have been issued to both Indian and Foreign PlayersReliance, HDFC Standard-Life, Max India-New York, Royal Sundaram Alliance, ICICI Prudential, IFFCO-Tokyo Marine, Bajaj Allianz, Birla Sunlife, Tata AIG, AVIVA Life Insurance, SBI Life, Om Kotak Mahindra are some of the entrants into the newly liberalized Indian Insurance market . ICICI Prudential and HDFC- Standard Life have issued their life policies from the private sector after 45 years. The first move for the liberalization came with the Malhotra Committee Report in 1993 which recommended the privatization of Insurance, setting of an insurance regulatory authority and restructuring the government monopoly LIC and GIC and its subsidiaries IRDA Act passed in November 1999 had set ball rolling for the entry of Private Players in domestic sector. LIBERALIZATION OF INSURANCE SECTOR: Liberalization commitment of the country to help in disciplining future economic policies will include the insurance reforms. When world over insurance market has been opened up. India cannot remain in isolation. History has shown that it is very difficult to proper in isolation. Globalization is the new economic reality, which is here to stay, heralding a new era of Insurance in India. With the opening of the insurance industry, Indian stands to gain with the following major advantages.
• Globalization will provide opportunities to the consumer for the better production. With more reasonable and affordable pricing. • The customer will get quicker service • It will enhance the saving rate. • Long-term funds for infrastructure development will be available to the country. • It will secure for India larger inflow of foreign capital need to sustain our GDP growth
ADVANTAGES OF LIBERLIZATION: • The opening up will enable the country to save more and invest more for the development in infrastructure. • With new insurance intermediaries and more distribution channels the market is bound to develop by leaps and bounds • In the next few years it is established that the Indian insurance sector will develop a better understanding of consumer requirement leading to more satisfaction of consumers. • Lead to increase in employment. • Social and rural obligations will also be served as IRDA has come out with clear regulation in this regard, which makes the development in this area mandatory. • Global competition will help in building expertise with their global practice.
Unlike west, in India, insurance is sold as the instrument of saving. About 18% of the policies are sold as death risk consideration. Impression about LIC is that they are not meant for the market requirements. They are only intended to find customers. Insurance awareness is therefore low. Unit linked insurance products are not available. Insurance covers are expensive and returns are low. Turn over the agent is high. The choice available to the insuring public is inadequate in terms of services, products and prices. These are the areas of weakness, which may act as opportunities for new players who may work to offer policies to the customer with the value additions at a competitive premium with much improved servicing. The IRDA Governs the critical aspect of Insurance Sector Including: • The number and role of Private Sector operates includingRoman area intermediaries. • Regulate covering investment, solvency norms • Product Range • Accounting Practices • Consumer Protection Norms • Ensuring the Rural and Health Insurance are developed • Fixing of License fee Perhaps all the most critical regulation is the 26% equity Capital for Foreign Insurers. This regulation bring in issues regarding management control and one of the reasons for joint venture
breaking up Cubb-Kotak, Liberty-Dabur, AllState-Dabur, Manu LifeUTI are some of the broken up alliances. IRDA: The insurance sector has been opened up in India, as there was an urgent need. The international experience indicates those country with a liberalized insurance sector have witnessed a rapid growth in premium volumes enhancing the domestic saving rate. This happened in China, Malaysia and Singapore where a competitive market has led to improvement in Services and quicker settlement of claims. It is also important to note that competition will bring about advancement in information, communication and technology. And rightly therefore a decision was taken by the Government of India to open up Insurance sector. The establishment of IRDA in the month of April 2000 has been important development in this direction, making the end of monopoly in the insurance sector. WHY INSURANCE IN INDIA: • Only 22% of the insurance population has been extended cover. Market penetration is low and the potential to exploit is high. • Insurance premium per capita is very low. • Lack of comprehensive social system benefit and welfare means that demand for pension products is high. • Huge middle class of approximately 300 Million.
• Existing insurance company score low on customer service front. The insurance market registered growth in the Asian region even though India’s share in global insurance is less than 0.5% (1988) as compared to USA (24.2%) and Japan (21%). Studies have reveled that in an emerging market, as disposable income rises, Insurance premiums as a ratio of GDP shoots up. The confederation of Indian Industry projected a growth of Life Insurance premiums from Rs. 350 Billion at present to Rs.140 Billion. The growth of non-life insurance premium is expected to increase from 75 billion to 375 billion. Out of which, only 10% is tapped by the existing insurer. Insurance even more than banking is a volume game. A very exclusive approach in view is unlikely to provide meaningful numbers. Currently, insurance is bought for the purpose of tax-benefits. A higher percentage of business is in the rural market. The share of rural new business insurance total new business is 55% in terms of policies and 47% in terms of sum assured. However, this needs to be viewed in the light of some recent issues that have been raised regarding as to what constitutes the rural market. Therefore, private insurers will be best served by middle market approach, targeting the customer segments that are presently unexploited. How many Indians are aware that LIC has more than 60Products and GIC has more than 180Products? Not only there is a reduction in the premiums of Life Insurance products have long overdue since Indian morality rate has decreased three folds in the
last 50years. There is also scope to increase the yield on life insurance policies (presently 6%) with proper risk management in place. It is been debated that insurance business does not produce profit in the first five years cross subsidization is a feature of Indian market. Even the first portfolio vote that is considered profitable, cross subsidizes other departments. Tariffs reduction is likely to reduce profits; further insurers have to institute proper claims management progress in order to extract efficiencies. At present life insurance business in the country is taxed at 12.5% of the profit in financial year. The government is soon to present a new model of taxing life insurance companies at international rates. New entrants should be well advised to look ahead to the stage where brand strength will be a competitive advantage and sketch their alliances accordingly. In fact, we believe that alliance related to distribution rather than to produce or technology will prove most valuable in the long run. Banks and financial companies will emerge, as attractive distribution channel for this insurance trend will be led by two factors, which already apply in other world market. First Banking food insurance, fund management and other financial services companies are being to increase their profitability and provide maximum value to their customers.
Therefore, they are themselves looking for a range of products to distribute. In other market notably Europe; this has resulted in bank assurance. Bank entering into the insurance business in India to bank hope to maximize expensive existing network by selling a range of products more of a loss alliance between insurance and bank than a formal ownership. Some Indian entrants like ICICI, HDFC and Reliance hope to ride their existing network and customer bases.
NEED OF BRAND NAME IN INSURANCE: Branding is the new key challenge in the financial services industry. Life in the 21st century will be longer with more choice in more field of activity. The financial consequence of the increased life span is particularly likely to be tough. Inevitably, this will lead to more complexity, which in turn necessities greater clarity and appeal from the service providers. Branding is more important in the financial services market which not only faces the problem of securing and retaining customers in an increasing competitive market place but also experience the need for heightened relevance of the brand positioning in a world where brand has been termed as new religion. Life Insurance Company
LIC ICICI Prudential HDFC Standard-Life Birla Sunlife
0.32 0.67 5.97 14099.66
5.52 30.15 100 2,03,085.28
Focus and strategies are essential for development of brand in any sector but the less tangible world of financial products historically has escaped the branding issues that have governed development and culture in other industries. If there was an industry, which is least, considered as an essentiality it would be the insurance industry. It was always felt as abstract services or a fall back, more likely a safety net. But it is more of shifting through competitive products to select most appropriate one, but with liberalization of the industry, players have to realize the need for branding in a competitive environment. Insurance companies need to strive for a greater customer focus regardless the customer is the end or the intermediary.
About Us ICICI Prudential: ICICI Prudential Life Insurance Company is a joint venture financial sector between services insurance ICICI group Bank, a premier in the financial United in powerhouse and Prudential plc, a leading international headquartered to begin Kingdom. ICICI Prudential was amongst the first private companies operations December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors; as well as 7 bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudential has retained its position as
the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. Vision Promoters Management Vision: Our vision: To make ICICI Prudential the
dominant Life and Pensions player built on trust by worldclass people and service. This we hope to achieve by:
the needs of customers and offering
them superior products and service
technology to service customers quickly,
efficiently and conveniently
Developing and implementing superior risk management
and investment strategies to offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and
learning for our employees And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5 core values -Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describes what the company stands for, the qualities of our people and the way we work. We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.
ICICI Bank: ICICI Bank is India’s second-largest bank with total assets of about Rs.112,024 crore and a network of about 450 branches and offices and about 1750 ATMs. It offers a wide range of banking and products its and financial services to and corporate and retail customers through a variety of delivery channels through specialised subsidiaries affiliates in the areas of investment banking, life and nonlife insurance, venture capital, asset management and information technology. ICICI Bank posted a net profit of Rs.1,637 crore for the year ended March 31, 2004. ICICI Bank''sequity shares are listed in India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of
(ADRs) are listed on the New York Stock Exchange (NYSE). Prudential plc: Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policyholder and unit holders worldwide. As of June 30, 2004, the company had over US$300 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
Board of Directors: The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Mr. K.V. Kamath, Chairman
Mr. Mark Norbom Mrs. Lalita D. Gupte Mrs. Kalpana Morparia Mrs. Chanda Kochhar Mr. Kevin Holmgren Mr. M.P. Modi Mr. R Narayanan Ms. Shikha Sharma, Managing Director Management Team: Ms. Shikha Sharma, Managing Director & CEO Mr. V. Rajagopalan, Chief – Actuary Mr. Sandeep Batra, Chief Financial Officer & Company Secretary Ms. Anita Pai, Chief - Customer Service and Operations Mr. Puneet Nanda, Chief – Investments Mr. Shubhro J. Mitra, Chief - Human Resources Mr. Dipan Bhattacharya - Chief Information Technology Fact Sheet
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential?s equity base stands at Rs. 925 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. For the past four years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. DISTRIBUTION: ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 74 cities and towns in India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Anand, Aurangabad, Bangalore, Bareilly, Bharuch, Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore,
Dehradun, Gurgaon, Kochi,
Faridabad, Hyderabad, Kota,
Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kolkata, Kolhapur, Kottayam, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mehsana, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Saharanpur, Salem, Shimla, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vapi, Vashi, Vijayawada and Vizag. The company has seven bancassurance tie-ups, having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some cooperative banks, as well as over 150 corporate agents and brokers. It has also tied up with NGOs, MFIs and corporates for the distribution of rural policies and organizations like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society.
ICICI Prudential has recruited and trained about 56,000 insurance advisors customers. customers. Further, to it infrastructure provide to interface its with of and advise IT to service leverages superior state-of-the-art
Market Share Among Private Companies:
Market Share Among Private Competitors
6% 6% 6% 9%
1% 4% 4% 1% 38%
ICICI Prudendial MAX. NYL. Ing Vyasa
Birla Sunlife TATA Aig Metlife
HDFC Standard OM Kotak AMP Sammar
Bajaj Allianz AVIVA Life
Market Potential for Private Life Insurance Companies in India: It has been found out that:
* 85 percent of the Indians prefer LIC than any other insurance companies. * 'Prevention of Loss', 'Assured Returns' and 'Long term Investment' are the important factors influencing Indians in opting for Life Insurance * Only few of the Indians are aware of private life insurance companies. * Most of the Indians are of the opinion that private insurance companies would be able to perform well in the long run. * Most of the Indians are interested in 'Money back' policies than others * Most of them are interested in insuring for an amount of Rs. 1- 2 lakhs * There is significant relationship existing between
monthly household income and amount insured * Based on the monthly household income, Indians prefer to their investment needs like bank deposit, post office schemes, real estate, insurance, gold, chit funds, shares etc. * Agents are mostly responsible for selling insurance products in India.
Life is unpredictable. But in face of adversity, our responsibilities towards our parents, children and loved ones need not be compromised. Insurance planning equips you to smooth out the uncertainties and adversities that life might send your way, so that the best that life has to offer, secure in the knowledge that your beloved ones are well provided for. ICICI Pru offers a complete range of insurance products 1. Protection Plans 2. Savings Plans 3. Child Plans 4. Investment Plans 5. Retirement Plans 6. Group Plans 7. Rural Plans 8. Plans for NRIs 9. Keyman Plans 10. Riders
ICICI Prudential Life Insurance offers LifeGuard - a set of pure protection plans. Choose from amongst three different product structures to insure your life and provide total security to your family, at a very affordable cost. Level Term Assurance with return of premium On death the entire sum assured will be paid. On maturity, all the premiums paid will be returned. Level Term Assurance without return of premium On death the entire sum assured will be paid. No survival or maturity benefits. You can also enhance the above two policies by adding Accident & Disability Benefit Rider and Waiver of Premium Rider (WOP) . Level Term Assurance - Single premium: On death the entire sum assured will be paid. No survival or maturity benefits
ICICI Prudential offers a variety of policies that give you the benefits of protection and the opportunity to save for important assets or events, like a home, a car or a wedding.
A regular premium unit-linked insurance plan with an assurance of Capital Guarantee# with the added advantage of flexible liquidity option. An ideal plan for long term planning with the benefit of liquidity. The key features of the plan are: Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of the annual premium. You can also choose the term of the plan. At the end of the term, the higher of the value of units or the guaranteed value* is paid. On death, Sum Assured along with the higher of value of units or the guaranteed value is payable. Facility to make withdrawals from the 6th policy year onwards till the end of the policy term. Every year withdraw up to 10% of the value of units. Additional credits payable as a percentage of the initial annual premium are paid along with the death or maturity benefit. Additional insurance for 10 years after the maturity, for an amount of 50% of the Sum Assured.
Flexibility to make additional investment with the help of the top-up facility. Flexibility to increase / decrease your annual premium amount Facility of Automatic Premium Payment- With this facility you can take a temporary break from premium payment. ** Total transparency with the premium allocations, and other charges declared upfront. The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all charges) along with the declared bonus interests.
** With Automatic Premium Payment facility, you can avail a temporary break from premium payment for a maximum of 1 year. This facility is available once if the premium paying term is less than 15 years and twice, if it is 15 years or more. # The capital guarantee is applicable only on the invested premium and the declared bonus interests. You can also enhance your policy by adding Accident & Disability Benefit Rider , Waiver of Premium Rider and Critical Illness Rider .
A regular premium unit-linked insurance plan with an assurance of Capital Guarantee# An ideal plan for your long-term savings and protection requirement. The key features of the plan are:
Flexibility to choose a specific level of protection
(Sum Assured), based on a multiple of the annual premium. You can also choose the term of the plan. At the end of the term, the higher of the value of units or the guaranteed value* is paid. On death, Sum Assured along with the higher of value of units or the guaranteed value is payable Additional credits payable as a percentage of the initial annual premium are paid along with the death or maturity benefit. Additional insurance for 10 years after the maturity, Flexibility to make additional investment with the Flexibility to increase / decrease your annual for an amount of 50% of the Sum Assured.
help of the top-up facility.
Facility of Automatic Premium Payment- With this
facility you can take a temporary break from premium payment. **
Total transparency with the premium allocations,
and other charges declared upfront. *The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all charges) along with the declared bonus interests. ** With Automatic Premium Payment facility, you can avail a temporary break from premium payment for a maximum of 1 year. This facility is available once if the premium paying term is less than 15 years and twice, if it is 15 years or more. # The capital guarantee is applicable only on the invested premium and the declared bonus interests. You can also enhance your policy by adding Accident & Disability Benefit Rider , Waiver of Premium Rider and Critical Illness Rider .
A unit-linked insurance plan with an assurance of Capital
Guarantee#, which offers you the benefit of a limited premium payment term. An ideal plan for protection with wealth creation that offers the flexibility of a limited premium paying term. Flexibility to choose a premium payment term of 5, 7 or 10 years for a maturity term of 10, 15 or 20 years respectively. Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of the annual premium.
At the end of the term (maturity), the higher of the value
of units or the guaranteed value* is paid. On death, Sum Assured along with the higher of value of units or the guaranteed value is payable. Additional credits payable as a percentage of the initial annual premium are paid along with the death or maturity benefit. Facility to make withdrawals from the 6th policy year onwards till the end of the policy term. Every year withdraw upto 10% of the value of units Flexibility to make additional investment with the help of the top-up facility. Flexibility to increase / decrease your annual premium amount Total transparency with the premium allocations, and other charges declared upfront.
The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all charges) along with the declared bonus interests. # The capital guarantee is applicable only on the invested premium and the declared bonus interests. You can also enhance your policy by adding Accident & Disability Benefit Rider and Critical Illness Rider .
Presenting Premier Life – The Preferred plan for the Preferred Customer. The key features of the plan are: Limited premium payment option: Choose from among a 3, 5, 7 or 10 year premium paying term. Choice of sum assured: Choose a sum assured, which is a minimum multiple of 1 and a maximum multiple of 25 times the annual contribution. Additional allocation of units on a periodic basis. Facility to top-up your investment any time you have surplus funds. Choose from among four funds, based on your investment objective and risk appetite. Choice to switch between investments options (4 free switches every policy year).
Flexibility to decrease your sum assured. Add-on riders to protect you against any eventuality. Loans against the policy. You can also enhance your policy by adding Critical Illness Rider , Accident & Disability Benefit Rider .
Presenting LifeTime & LifeTime II – unit –linked plans that meets your changing needs over a lifetime. These solutions have been developed to meet your savings, protection and investment Protection Choose a specified level of protection (available only with LifeTime). Two levels of Sum Assured to choose from (available only with LifeTime II).
Flexibility to increase or decrease your sum assured.
Add-on riders to protect you against any eventuality.
Savings Flexibility to increase or decrease your contribution. Facility payment LifeTime). Facility of Automatic Cover Continuance, wherein the policy continues even if there is a temporary break in the payment of annual contribution (available only with LifeTime II). Facility to top-up your investment any time you have surplus funds. Additional allocation of units on a periodic basis. Loans against the policy. Investment: Choose from among four funds, based on your of of Premium annual Holiday, wherein (available the only policy with continues even if there is a temporary break in the contribution
investment objective and risk appetite. Choice to switch between investments options (4 free switches every policy year). You can also enhance your policy by adding Critical Illness Rider , Major Surgical Assistance Rider , Accident & Disability Benefit Rider , Accident Benefit Rider (available only with LifeTime) and Waiver of Premium Rider
(available only with LifeTime II). An insurance plan that gives added protection, savings and multiple options, all in one! The flexibility to choose your premium contribution. The flexibility to choose amongst three levels of cover (in the form of sum assured) for the same amount of total annual contribution. The flexibility of shifting between the three levels of cover, as you require. The flexibility of receiving your maturity proceeds as a lumpsum or in equal annual installments over 3 or 5 years.
You can also enhance your policy by adding Variety of Riders
An insurance plan that gives you added protection, savings, multiple options, plus the power of liquidity. The flexibility to choose your premium contribution.
The flexibility to choose amongst three levels of cover (in the form of sum assured) for the same amount of total annual contribution. The flexibility of shifting between the three levels of cover, as you require. The flexibility of receiving your maturity proceeds as a lump sum or in equal annual installments over 3 or 5 years. The flexibility of withdrawing up to 10% of the accumulated value of your policy, after the first 5 policy years. You can also enhance your policy by adding Variety of Riders
An ideal plan for those who want to accumulate funds on a regular basis while enjoying insurance protection.
Guaranteed Benefits: Guaranteed additions @ 3.5% of
the Sum Assured, compounded annually for the first 4 years of the policy.
Extended Life Cover: An extended cover for 5 years
after the maturity of the policy, for 50% of the sum assured, at no extra cost.
Maturity Benefit: At the end of the term, the policyholder
receives the full sum assured, the guaranteed additions and the vested bonuses.
bonuses incase the life assured were to meet with an unfortunate event. In case the life assured is aged 7 years or less, the basic premium paid will be returned.
You can also enhance your policy by adding Critical Illness Rider , Major Surgical Assistance Rider , Accident & Disability Benefit Rider , Waiver of Premium Rider (WOP)
Smart Kid Education Plans
As a responsible parent, you will always strive to ensure a hassle-free, successful life for your child. However, life is full of uncertainties and even the best-laid plans can go wrong. Here’s how you can give your child a 100% safe and assured tomorrow, whatever the uncertainties. SmartKid is
especially designed to provide flexibility and safeguard your child’s future education and lifestyle, taking all possibilities into account. Choose from amongst a basket of 4 plans:
SmartKid regular premium SmartKid unit-linked regular premium SmartKid unit-linked regular premium II SmartKid unit-linked single premium II
All these plans offer you:
stages in your child’s life, like Board examinations, Graduation and Post-graduation.
Total peace of mind, even if you are not around Sum Assured is paid immediately: Ensures that your
loved ones stay financially secure, absence.
All future premiums are waived: Ensuring that your
family is not financially burdened in your absence.
Policy benefits continue: The educational benefits of
the policy continue, ensuring that your child can realize his or her dreams without any hassles.
Allowance: also ensures
SmartKid his or her
regular income to secure your child’s educational career and
development, for a nominal additional amount. The Income Benefit Rider takes care of this through an annual payment of 10% of the sum assured, to your child, till the maturity of the policy, in the unfortunate event of the death of the parent.
All SmartKid plans can be enhanced with the Accident & Disability Benefit Rider and Income Benefit Rider . You can also an Accident Benefit Rider to a SmartKid Regular Premium policy, and a Waiver of Premium Rider (WOP) to SmartKid unit-linked regular premium policy.
LifeLink II is a unique plan that combines the security of a life insurance policy with the opportunity of enjoying high returns on your investments, without the market risks compromising on the protection of your family!
Death Benefit: The Sum Assured under the product has 2 options, either 500% of the initial premium or 105% of the initial premium. In the event of an unfortunate death, the beneficiary will receive higher of the value of units or the initial death benefit, less any withdrawals. Withdrawal Benefit: One can make partial withdrawals from the accumulated value of the policy after completion of one policy year. Flexibility: Choose from four fund options, based on your investment objective and risk appetite. If at a later stage your financial priorities change, you can switch between the various fund options, absolutely free, 4 times a year.
Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier generations. For you, this increase will mean a longer retirement life, stretching into a couple of decades. ICICI Prudential presents Retirement Solutions that combine the best of insurance and investment. These solutions are developed to ensure your peace of mind for the years to come.
1. Why plan for retirement? 48
2. How much should I set aside for retirement? 3. The impact of inflation on your retirement savings 4. Why plan early? 5. About Annuities
Why plan for retirement? For too many people, the joy of retirement after years of hard work is eclipsed by the financial uncertainties that it brings. Despite all the planning and saving, you can never sure whether your money will last a lifetime. Retirement planning offers a way to ensure a more enjoyable, stress free tomorrow. A prudent plan will ensure that increasing life expectancy, higher inflation and increasing taxes do not eat away into your hard earned savings. How much must I set aside for retirement? To ensure a comfortable retired life, you would be wise to invest money into additional avenues like pension plans. How much you need to invest can be answered by answering some questions such as: 1. How long do you have to save that amount before retirement? 2. Where can you invest your retirement money? 3. How much risk are you willing to take on your investments?
Impact of Inflation: Inflation implies the change in the worth of money over a period. By the time you retire, your money will be worth a lot less than what it is today. So, its important to factor this in when you invest for your golden years. In order to determine just how much buying power your retirement income will have, you should apply the expected rate of inflation to your planned annuity income. The procedure is as follows:
much annual income you will need to live the lifestyle you want, in today's currency.
Second, multiply this amount by one plus the annual
rate of inflation. For example, if you think you will need Rs. 200,000 a year and the expected annual rate of
inflation is 5%: Rs.200,000 x (1 + 0.05) = 210,000 You will actually need Rs.210,000 to cover your expenses after a year - inclusive of the cost of rising inflation. Repeat the calculation, using your new total, for every year you plan to wait before drawing on your savings at retirement. The results may surprise you. For example, the effects of 10 years of inflation means you will need Rs. 255,256 (approximately) to meet those same expenses!
power of Rs. 10,000 after some years. Why Plan Early? “Retirement, that’s 20 years from now. Why should I think about it now?” Isn’t that the standard answer that we all give when asked about retirement planning. However, to build a healthy retirement kitty, it is necessary to start planning early, as evident in the example below: As can be seen the cost of delaying is high. Situation A is when you are saving Rs 10000 annually from the age of 25 to 34 years and Situation B is when you save the same annual amount from the age of 35 to 59 years. As can be seen in the example, even after investing your money for a 2.5 times longer duration, the maturity value
in the second case is much lesser (the figures are based on a hypothetical interest
rate of 10%). The longer your money is allowed to grow at rate, a the compounded difference be eventually.
more dramatic will the
assurance of Capital Guarantee#. A flexible pension plan to secure your retirement years.
Flexibility to choose a level of protection (Sum Assured), based on a multiple of the annual premium and term. Zero Sum Assured can also be chosen. You can choose the term of the plan. At the end of the term, the higher of the value of units or the guaranteed value* is used to purchase an annuity (pension). On death, Sum Assured (if chosen) along with the higher of value of units or the guaranteed value is
used to purchase an annuity or can be taken as lumpsum, by the nominee. Additional credits payable as a percentage of the initial annual premium are paid along with the death benefit or at vesting (Retirement date). Flexibility to choose from amongst 5 different annuity options at vesting (Retirement date). Flexibility to make additional investment with the help of the top-up facility. Flexibility to increase / decrease your annual premium amount Facility of Automatic Premium Payment- With this facility you can take a temporary break from premium payment. ** Total transparency with the premium allocations, and other charges declared upfront. * The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all charges) along with the declared bonus interests. ** With Automatic Premium Payment facility, you can avail a temporary break from premium payment for a maximum of 1 year. This facility is available once if the premium paying term is less than 15 years and twice, if it is 15 years or more.
# The capital guarantee is applicable only on the invested premium and the declared bonus interests. You can also enhance your policy by adding Accident & Disability Benefit Rider and Waiver of Premium Rider .
In an era of competitive parity, the only asset that makes a decisive difference between corporate success and failure is the quality of human capital. Employee benefits have proven to be an excellent tool to optimize the retention of talent and improve an organization’s bottom-line. The quality of an organization’s employee benefits establishes and maintains a company's image as a caring employer. Optimum care of employees is a long-term investment that results in a sustained competitive advantage for an organization in the times to come. ICICI Pru Group Solutions Advantage: An integrated basket of employee benefits solutions that offer incomparable flexible benefits. Sound investment management that focuses on safety, stability and profitability of the portfolio.
Personalized financial planning for your employee that takes care of his/her changing financial needs at every stage of life. Quality service initiatives and transparency across all operations, efficiency. promising superlative operational
Group Term Assurance : Helps provide affordable cover to members of a group. Group Gratuity Plan : Helps employers fund their statutory gratuity obligation in a flexible and hassle-free manner. Group Superannuation Plan : A flexible scheme (defined benefit and defined contribution) to provide a retirement kitty for each member of the group. Group Term Assurance: ICICI Pru's flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary, and can be extended to all employees between the ages of 18 and 65 years. The benefit under the policy is paid on the event of the member’s death to the beneficiary nominated by the member. It is a one-year renewable policy where one master policy covers all proposed employees comprising the
group, with a minimum group size of 25 persons. New members can join the group and outgoing members can leave the group at any point during the policy term. Highlights include:
Greater convenience for the employees with relaxed
underwriting and medical requirements.
depending upon the number of employees in the group and the level of cover chosen.
Guaranteed benefit: On death during the term of the
contract (while in service), the sum assured will be paid to the beneficiary of the employee. Choice of additional coverage in form an Accident and Disability Benefit Rider and Critical Illness Cover Premium is viewed as a business expense in the year of payment. Group Gratuity Plan: ICICI Pru's group gratuity plan helps employers fund their gratuity obligation in a scientific manner. Employers can avail of the tax benefits as applicable to approved gratuity funds. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations.
Wider choice of investments with Market Linked
Plans - to meet the diverse financial goals. We offer 4 investment balanced objectives.
Transparency through Daily disclosure of Unit Value
investments will be made in accordance with the fund
and regular disclosure of the portfolio of each of the investment option
redirection option to enable reshuffling of portfolio
Bundled Life Cover greater value to the employee by
packaging life insurance cover with the gratuity, with minimal amount of underwriting.
Actuarial services to provide a scientific estimation of
the gratuity liability.
Low explicit charge structure with the conditions for
exit specified upfront.
settlement, easier access to information and regular statements.
end to end solution in the legal and
regulatory approval process for scheme set up or transfer
Employee Benefits: The contribution made by the employer is not included in the value of taxable perquisites in the hands of the employee.
Gratuity received up to Rs 350000 is exempt from Income tax under Sec 10(10) Employer Benefits: Annual contribution up to 8.33% of salary bill in a financial year is allowed a deduction for the purpose of computation of profits and gains of business. Contribution towards past service liability is allowed as deduction as per the Income Tax rules.
Group Superannuation Plan: ICICI Pru’s Superannuation Scheme (for both Defined Benefit and Defined Contribution funds) offers substantial benefits to both employers and employees. The employer and employee can avail of tax benefits applicable to an approved superannuation trust. The scheme will provide for
a retirement fund for each participating employee. An employee would be able to choose from various annuity options or opt for partial commutation of corpus at retirement. Highlights include:
Wider choice of investments with Market Linked Plans
investment options (short-term debt, debt, balanced, growth and capital guarantee where investments will be made in accordance with the fund objectives.
Control - Each member/employer can exercise greater
control over investments by choosing one or more of the investment options.
Multiple Annuity Options - 5 annuity options and open
Transperancy - Transparency through Daily disclosure of
Unit Value and regular disclosure of the portfolio of each of the investment option
Flexibility - Flexibility through switching and contribution
redirection option to enable reshuffling of portfolio
Low explicit charge structure with conditions for exit
settlement, easier access to information and regular statements.
regulatory approval process for scheme set up or transfer
ICICI PruLife Rural Products are designed to meet the needs of the rural consumers. These products offer the following features: 1. Low and Affordable Premiums 2. Life Cover 3. Savings Option 4. Hassle free procedure ICICI Prudential offers 2 specially designed rural plans.
a) ICICI Pru Mitr – Endowment Plan b) ICICI Pru Suraksha - Regular Premium
ICICI Pru Mitr – Endowment Plan: ICICI Pru Mitr offers the following features: Life Cover and Savings Regular Premiums Age at entry Premium Mode Term
18 - 45 Yrs Half Yearly / Yearly 5,10,15 Yrs
Sum Assured Premium / Year
Rs.5,000 -20,000 Rs. 507 - 553 ( SA: Rs.10,000) Sum Assured
ICICI Pru Suraksha - Regular Premium: ICICI Pru Suraksha is a regular premium policy with the following features:
Individual policy Only Life cover Term - 3 & 5 Yrs Age independent premium Age at entry Sum Assured Premium / Year Maturity/Death benefit Death Benefit 18 - 45 Yrs Single Rs 50 – 200 Rs.5,000 - 20,000 Sum Assured
Plans for NRIs
NRI Plans: Being away from India doesn't mean you have to
compromise the safety and security of your loved ones. In
fact, your savings from your time overseas can be easily channelised to meet your family's needs - now and in the future. So, whether its your dream to retire in your hometown; to secure funds for your children's education; or to build assets, ICICI Prudential has a range of solutions that can be customized to meet your needs. Investment Plans Savings Plans Retirement Plans Child Plans Investment Plans: You can hedge your investments with investment like LifeLink II vehicles that provide you with a diversified portfolio. Savings Plans: Endowment policies are a good way of putting aside your savings today for a future goal - whether it's to buy a house in India or fund your entrepreneurial vision. Our savings-oriented
policies are designed to make your savings grow and have them available
to you at the end of a fixed number of years or through the term of the plan.
protection savings and multiple options, all in one!
CashPlus - an insurance plan that gives added protection
savings, multiple options, plus the power of liquidity.
LifeTime II - a complete market-linked insurance plan
investment needs, throughout a lifetime.
Save'n'Protect - a traditional endowment savings plan
that offers both high returns and protection.
CashBak - an endowment savings plan that allows you to
get back substantial survival benefits without having to wait till the maturity date.
Premier Life - A market linked insurance plans that
meets your Investment and Protection needs. Retirement Plans: Many of us picture ourselves enjoying the fruits of our labour after retirement - going on a dream vacation, or helping our child's career take wing. Financing all this will depend on our personal savings and investments, so its important to save for the future from today. Our retirement plans are designed to help you systematically save, so that you can enjoy all the things you have dreamed of when you retire.
Pension II : A regular premium linked
deferred pension plan that gives you the freedom to choose the amount of premium, and invest in marketlinked funds, to generate potentially higher returns.
SecurePlus Pension : A regular premium deferred
pension plan that gives you the flexibility to choose between 3 levels of sum assured for the same level of total annual contribution.
LifeLink Pension II : A single premium linked deferred
pension plan that gives you the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns.
ForeverLife : A regular premium deferred pension plan
that helps you save for your retirement while providing you with life insurance protection.
Child Plans: As a responsible parent, you want to ensure a hassle-free, successful life for your child. However, life is full of uncertainties and even the best-laid plans can go wrong. SmartKid Education Plans are designed to provide flexibility and to safeguard your child's future education and lifestyle, taking all possibilities into account. SmartKid Child
Plans has a bouquet of three products which can help you secure your child’s education.
Unit-linked Regular Premium Unit-linked Single Premium Regular Premium SmartKid
Keyman Insurance Plans: A keyman is an individual who directly affects the
profitability and the continuity of a business and whose absence may have an adverse effect on the health and continuity of the business. Keyman insurance is a life insurance policy taken by the company on the life of such a key person. The objective of the keyman insurance is to provide the company with money so that the financial losses to the company can be protected, in absence of the keyman. The aim is to indemnify the company of these losses and to allow business continuity. All premiums paid for securing a keyman life insurance policy are treated as business expenditure u/s 37
(1). Our Lifeguard plan is ideally suited for the purpose of keyman insurance. Riders:
ICICI Prudential gives you the freedom to form your very own comprehensive insurance policy by adding the rider benefits to the basic life insurance policy. Add from the following list of benefits to increase the scope of your policy, at a nominal cost.
• • • • • •
Critical Illness Rider Major Surgical Assistance Rider Accident & Disability Benefit Rider Accident Benefit Rider Income Benefit Rider Waiver of Premium Rider (WOP)
Critical Illness Benefit Rider: This rider provides protection against 9 critical illnesses, namely: Major organ transplants, Complete renal failure, Stroke, Paralysis, Heart attack, Valve replacement surgery, Major surgery of the aorta, CAGS (Bypass) and Cancer. Benefits paid on contracting the illness:
Accelerated benefits (available with Save n’ Protect
and CashBak): If the policyholder is diagnosed with any of the specified illnesses, then the policyholder is paid the entire sum assured under the rider. The policy along with all the riders (to the extent of the Rider Sum Assured) is then terminated. However, the remainder of the base policy continues till the end of the term. The policyholder will have to continue paying his premiums for the remainder of the policy.
benefits (available with SecurePlus, and SecurePlus Pension): If the
policyholder is diagnosed with any of the specified illnesses, then the policyholder is paid the entire sum assured under the rider. The life cover along with all the riders is then terminated. However, the policy value accumulation continues till the end of the term or death, whichever is earlier.
Standalone benefits (available with Premier Life,
LifeTime, LifeTime II, ForeverLife, Group Term Plan, InvestShield Life, InvestShield Cash and InvestShield Gold) : If the policyholder is diagnosed with any of the specified illnesses, he/she is paid the rider Sum Assured and the rider terminates. However, the base policy continues till maturity. Premiums paid
under this rider are eligible for tax benefits under Section 80D. Major Surgical Assistance Rider: This rider provides assistance to the policyholder against 43 surgical procedures. These surgical procedures are divided into 3 categories and the extent of assistance provided depends on the type of procedure. Major procedures – 50% of the rider sum assured is paid. Intermediate procedures – 30% of the rider sum assured is paid Minor procedures – 20% of the rider sum assured is paid This benefit is payable on more than one occasion when the life assured undergoes surgery. However the total benefit payable in case of all the procedures is restricted to a maximum of 50% of the sum assured. Major Surgical Assistance rider is available with Save n’ Protect, Cash back, Life Time, Lifetime II, Forever Life, Secure Plus, Cash Plus and Secure Plus Pension.
Premiums paid under this rider are eligible for tax benefits under Section 80D.
Accident & Disability Benefit Rider: Benefits payable on death due to an accident If the policyholder dies due to an accident, 100% of the rider sum assured is paid in addition to the basic sum assured. In case the policyholder dies in a land surface, mass public transport system wherein the policyholder was traveling as a fare-paying passenger, then 200% of the rider sum assured is paid. Benefits payable in case of permanent disability due to an accident If the policyholder survives an accident but becomes permanently disabled then the premium for the basic plan is completely waived off to the extent of the rider sum assured. Plus, 10% of the rider sum assured is paid for the next 10 years, which helps in providing that extra money and takes care of sudden financial set back that occurs after a tragic disability.
Accident & Disability Benefit rider is available with Save n’ Protect, Cash back, Smart Kid, Child Plans, Premier Life, Life Time, Life Time II, Life Time Pension II, Forever Life, Secure Plus, Cash Plus, Secure Plus Pension, Life Guard ROP, Life Guard WROP, Group Term Plan, Invest Shield Life, Invest Shield Cash, Invest Shield Gold and Invest Shield Pension . In case of Lifetime II, Lifetime Pension II, Secure Plus, Cash Plus, Life Guard ROP and Life Guard WROP, the waiver of premium benefit is not available. Premiums paid under this rider are eligible for tax benefits under Section 88. Accident Benefit Rider: If the policyholder dies due to an accident, 100% of the rider sum assured is paid in addition to the basic sum assured. Accident Benefit rider is available with Save n’Protect, CashBak, SmartKid regular premium, ForeverLife, SecurePlus, CashPlus and SecurePlus Pension. Premiums paid under this rider are eligible for tax benefits under Section 88. Income Benefit Rider:
In case of death of the life assured during the term of the policy, 10% of the rider sum assured is paid annually to the beneficiary, on each policy anniversary till maturity of the Plans, SecurePlus and CashPlus. rider. Income Benefit rider is available with SmartKid Child
Premiums paid under this rider are eligible for tax benefits under Section 88. Waiver of Premium Rider (WOP): On total and permanent disability due to an accident, all future premiums for both the base policy and rider(s) will be waived till the end of the term of the rider or death of the life assured, if earlier. Waiver of Premium rider is available with SecurePlus, CashPlus, LifeGuard ROP, LifeGuard WROP, SmartKid Unit-linked regular premium II, Lifetime II, LifeTime Pension II, SecurePlus Pension, InvestShield Life, InvestShield Cash and InvestShield Pension. Premiums paid under this rider are eligible for tax benefits under Section 88.
WHY TO RECRUIT WHO TO RECRUIT HOW TO RECRUIT RECRUITMENT ACTIVITIES WHAT TO CHECK WHILE WE ARE RECRUITING
ROLE OF ADVISOR WORKING ENVIRONMENT DO YOU POSSESS
SUPPORT PACKAGE FOR SUCCESSFUL ADVISOR
EXTENSIVE TRAINING FOR SUCCESSFUL ADVISOR EXTENSIVE INVESTMENT IN ADVISOR TRAINING PAYMENT & BENEFIT – COMMISSION STRUCTURE RECOGNITION PROGRAMS ICICI PRU STAR CLUB BENEFIT CAREER PROGRESSION & FUTURE OPPORTUNITIES
WHY TO RECRUIT There are two aspects of employment in the insurance sector today. One is Permanent Employment, for sales, operation, IT support, back office services and So on. We are also offering the other kind of employment –for people to sell Life Insurance – they are called ‘Life Advisors’. Or ‘Financial Advisors’. This is a
big area of employment.
Because we are supposed to!! More recruits, more active advisors, more BDA WHO TO RECRUIT Quality Deptt. has given some indicators in terms of what are the common traits(Q-SCORE) of our successful advisorsThe commonalities were
• That the way to do this business.
Age Education Family Income Marital Status Live in city
: graduate : above Rs. 2 lacs p.a. : Yes/No : More than five years
The important fact to remember is that 61% of our RED category advisors do not fall into any of this category.
• This is a broad pointer for us to remember what are the his/her profile • Some other pointer from Quality • Most of the RED category advisors FAILED in the DISC profile – which means that DISC is good indicator of chanced of success or failure • Successful advisors usually have 2 years of work exp. In their current profession • Small time businessmen / entrepreneurs –v. successful profile • Women/Housewives are very successful- however they have not been sustainable over long periods. They usually have become inactive after 6 – 7 months of joining. But till the time they are working, their average WAPI & Productivity is very high compared to others. • People who are new to the city are least probable to do well.
Who to recruit? • High probability of Success • Tax/ Financial Consultants, CAS • Bond / Mutual Fund Agents • LIC Agents – Surrogates • Small business owners
Average Profile • Women • Students • VRS / retired Personnel Avoidable Profiles
• New to the City • Income Profile – Approx Rs.1 Lac P.A. • People who do not own their transport
THE MOST SUCCESSFUL PROFILE – THE PERSON
WHO HAS BEEN MANAGED WELL BY YOU. How to Recruit? Things which you should have while meeting the prospect. BOP Presenter. Reward points booklet OR take a copy of the catalog from the website – show the gifts, a prospect wouldn’t understand points, but will value the gifts. Advisor Manual - can show how the manual can answer many procedural issues. Talk about email id & tech support – the prospect would like to know what all ill the company give
My Market show 100 – show the booklet and stress its importance. Copy of any certificate – MDRT certificates, Sales Champion certificate etc to show recognition. Insist on doing the BOP presentation – it gives a complete picture of what you have to present & answers a lot of questions. Stress on different things to different profiles – change your proposition as per the customer. Women – Rewards, - gift items, household goods, gold . Young marketing background – career Pinnacle. Tax/ MF/ LIC Agents – Rewards & Recognition, Star Clubs. CAs – foreign trips, preferential treatment in all aspects, don’t talk about commissions, stress on the extras.
Small businessman / Entrepreneurs – show ROE –
Return on Energy , to the earn the same amount of money from your business; you would be spending much more time & energy a lot of capital from your pocket. THE POWER RENEWAL COMMISSIONS: commissions ARE THE differentiator from every other sort of business
Always, always, always stress on the fact that renewal
Spend lot of time on the Commissions structure given in the BOP Try to do an example in front of them trying to portray the commissions payable for the same amount of business done every year THE EARNING CALCULATOR WILL BE OF THE HELP HERE
Each of us should have a mix of Mass Media Activities - Spray & Pray
Lead Generation activities Database calling, cold calling,
tele-calling, BOPs, Yellow fish
mailers, bowl Pages,
mass activity, Trade
Inserts, Pamphlets, Banners
Over the last one year, the response from this basket of activities has gone down drastically, thus forcing us to be creative to create other avenues
generation activities more so as to have more people to touch upon and tell about this career opportunity
• Activities which have done well with us in the recent past: Joggers Park Summer Trainees Mass BOPs Database Calling
Lead Generation Activities Tele Calling set ups • Some more ways on how to recruit: Database Attack – can be done through a trainee. Cold Calling – helps a lot as the respondent does not waste your time by dilly dallying. RWA Activities – Tambola or children painting competition- gives real time leads, cost effective per lead. Look at level MBA colleges for Pinnacle probable. Source local databases – Cable TV Service providers, home delivery caterers. Fish Bowl Activity- in high football places. Things to check while recruiting: • ENERGY, ENERGY ……… always check the person’s energy levels, as this career is all about meeting new people, finding new prospects and more so handling rejections • His past/ present occupation gives tremendous insight into his energy levels • Show him the path in his current environment how insurance selling can fit in – lowers the resistance of time availability • Check his environment – his family locality
• Check whether he can work on his own • Find out if he is looking for money or career – as he can have both here Things to check while recruiting: • Always try to meet the person at his residence- check for the locality, his household, standard of living, try to involve the spouse in the presentation so that they know what they are getting into • Always check on need for money & a drive to do well in life – if he has been doing well in life, he will make efforts to do well with us • Ask questions about his past, find instances of accomplishments • Keep checking on the pointers & do a mental check list of the acceptable points • Be convinced about the profile and then only go ahead Advisor Role • To provide ongoing financial advice for his/her client: Identify future client Making appointments Conduct financial review meetings with prospects / clients
Close sale Get referrals Provide service to clients Follows internal sales & reporting systems: Working environment: To be part of a world class sales team. Work from your own office or residence. Work full time or part time. Earn commission, bonus $ incentives. No upper limits in earnings. Flexible career. Your opportunity: No startup capital required. Flexible working environment. Be your own boss. Unlimited earning potential. To be part of world - class team.
Extensive training to make you a professional advisor: • State-of-the-art training on : Selling skills. Product knowledge. Relationship skills.
• Training delivery through several convenient options : Face –to- face. Online. Self learning.
Some of our high performers get…. YEAR 1 50 16000 YEAR 2 75 16000 1200000 YEAR 3 100 16000 1600000
Number of policies sold Average Premium Rs. Total primium earned Rs.
800000 Average commission including bonuses estimates @ 22.5%* Earnings from new business Rs Commission on renewal premium @ 6% For year 2,3 & 3% after that Earnings from renewal business Rs Total earnings Rs. 180000 48000 318000 48000 72000 48000 120000 480000 180000 180000 270000 360000 270000 360000
Depending on the product mix commission can go upto
35% in of first year, 7.5% in the 2 n d year & 3 r d year & 5% 4 t h year onwards?
• Recognition programs : Foreign trips & seminars. Select club memberships: o President’s club. o ICICI Pru star club. MDRT Membership. Career progression & future opportunities: • Exclusive program for high potential achievers. • Hand picked advisors. • A fast track career path. • Recognition as “Tiger “ • Continue doing your business. • Criteria. -Age –25 –40 years -At least 1 year in system -Case count 2 per month • Part time career as a Trainer. • Conduct foundation programs. • Share best flied practices. • Replicate your business.
• Continue doing your business. • Criteria. -Age 25-45 years -At least 6 months s in system - 2 case count per month Fast track pinnacle programmes: • A full time career as audit manager • Growth within ICICI Prudential • Greater earning potential • Personal Development • Performance criteria -Age 25-45 years -At least 6month in system -30 issuance within 6 months Pinnacle programmes: • A full time career as a unit manager • Growth within ICICI prudential • Greater earning potential • Personal Development • Performance criteria
-Age 25-45 years -At least 1 year in system -Average 2 case count per month Agency champion:
Take your business to the next level Entrepreneurs ,develop your own business Recruit new advisor and make your own team Increased reach and earning potential Criteria
-At least 1 year in system -Minimum 36 policies and 3.6lacs premium -Selection process( assessment center) Next steps
Confirmation of mutual interest Selection interview Profiling test dates Draft payment favoring ‘ICICI Prudential life insurance co.Ltd’ payable in mumbai Finalize Training Dates,venue
Support team the Company:
Field visits Training on products & selling skills regular business reviews be a coach & mentor recognize high performers help you become financially indipendent
Expectations of team • Achieve sales targets • Participate in all meetings • Attend all training programs • Weekly reviews at the office • Follow the sales process • Follow weekly reporting process
Finding # 1
Reasons of being Financial Advisor with ICICI Prudential
EXTRA INCOME RECOGNITION ALL THE ABOVE
CAREER PROGRESSION FLEXIBILITY
Analysis: Since the above finding shows that most of the financial advisors with ICICI Prudential have a mix reason for being a financial advisor so, the dominating feature will be that one which forms the major portion of the mix reaction i.e. extra income & career progression. Thus, ICICI Prudential is able to satisfy the two major desires of its financial advisors those are money and growth.
Finding # 2
Annual Business Provided by Advisors
MORE THAN 70000
Analysis: A majority of financial advisors are able to deliver a good results and giving good figures. About 81% are giving business more than Rs. 70,000 a year but it is not last it needs some proper attention to develop it more.
Finding # 3
Satisfaction Level of Financial Advisors
HIGHLY SATISFIED SATISFIEDDISSATISFIED HIGHLY DISSATISFIED CAN'T SAY
Analysis: The finding is able to tell that satisfaction is higher than dissatisfaction but the real achievement will be to convert that dissatisfaction into satisfaction too. In this direction the first step should be to think and make a proper action plan to increase the level of satisfaction.
Findings # 4
Reasons of Liking ICICI Pru.
Integrity Good Working Environment Customer-friendly policiesCan work all over the country
Analysis: The finding is able to tell that the Advisor Liking ICICI Pru because in ICICI Pru Coustomer friendly policy and can work all over the country. Its benefit of the Advisors and for the company.
Findings # 5
Working Enviournment of the Company
5% 24% 32%
39% Very Good Good Average Poor
The finding shows the most Advisor Perceptions for the ICICI Pru Good working enviourment and somebody are says very good environment. it is benefits for the company then they can provide the better facility for the Advisors.
Findings # 6
Pattern of Working 43% 57%
Part Time Full Time
Analysis: The findings shows the many people join the Advisors ships for the part time work
Findings # 7
Durations of Working with ICICI Pru
More than 3 yrs
Analysis: In the ICICI Pru maximum Advisors are working between one to two years. The findings show the advisors growth in the company.
Findings # 8
Previous Sales Experience of Avisors
Less than 1yrs
More than 3 yrs
Analysis: The findings shows that maximum Advisors working and worked in other companies then they have maximum experience in sales fields
Findings # 9
Durations of Advisor Residence in Lucknow
Less than 5 yrs
More than 5 yrs
Analysis: It is the show the maximums advisors living in Lucknow by birth. Then can have a good relations in Lucknow, They can do the work in company .
Findings # 10
T o ta l H o u se h o ld In c o m e o f A d v iso r( p e r a n n u m ) 14% 14%
L e s s th a n 1 0 0 0 0 00 0 0 0 0 -2 0 0 0 0 0 1 2 0 0 0 0 0 -3 0 0 0 0 0 M o re th a n 3 0 0 0 0 0
Findings # 11
Main Profession of Advisors
50% 3% 0% 3% 11%
Findings # 12
Edcational Qualification of Advisors
Post Graduate & Above
Findings # 13
Marital Status of Advisors
Findings # 14
Male vs. Female of Advisors
Findings # 15
Age of Advisors
5%0% 49% 46%
Findings # 1
Male vs. Female Respondence
Findings # 2
Marital Status of Respondent
Findings # 3
Age of Respondent 2% 53%
Less 25 25-35 35-45 Above 55
Findings # 4
Qualification Of Respondent 16%
57% 12th GraductionPost Graduction
Findings # 5
Dependent Of Respondent
Findings # 6
Occupation of Respondent 12% 7% 13% 33% Student Business Govt. Service Pvt. Service House Wife Others 9% 26%
Findings # 7
How Many Hours You Give Your Own Profession
Less 5hr 05hr-07hr 07hr-12hr Above 12hr
Findings # 8
Annual Family Income of Respondence
17% 7% 23%
53% Less 100000 200000-400000 100000-200000 Above 400000
Findings # 9
Associated With Any Club Or Social Organisation 22%
78% Yes No
Findings # 10
Interest In Extra Earning
Findings # 11
Referance To The Persons Who are Interested In Extra Earning
Findings # 12
Fields Of Interest
27% 17% Insurance IT Banking
Findings # 13
Preferance Of Insurance Company
10% 2% 25% 11% 7% Bajaj Allianz Om Kotak HDFC Others
ICICI Prudential LIC
Findings # 14
Happy With Present Level Of Income 17%
83% Yes No
Findings # 15
Durations Of Residence In Lucknow
35% 52% 13% By Birth Less Than 5 yrs More Than 5yrs
Finding-1 shows the difference between the male & female respondent who are selected as a new advisor the male dominant over female. There is a big difference between the male & female advisor. Findings –2 shows the martial status of new advisors. Out of 100 advisors selected 61 are one married which is a good sign because they are much more aware insurance and 39 unmarried. Findings-3 shows the age group of selected advisors are quiet encouraging. 53 % are over age of 55 years which is quite good for company because they much more by the prospect than the other age group. Findings-4 shows most of the selected advisors have a good qualification. Most of them are graduate and post graduate. Findings-5 shows, because 61% advisors are married so the dependent person on them are same. Findings-6 shows most of the new advisors are engaged in different business.
engaged in private service and some have their own
Findings-7 All most 50% of the new advisors give full time to their profession. This shows how new advisors are dedicated towards their new profession. Findings-8 Most of the new advisors have a very good family support. The annual family income of most of the new advisors are over 10,000 which is very encouragement Findings-9 Most of the new advisors belongs to a middle income group so they are not in a position to join any club or social organization. The percent of joining such club or organization is just 22%. Findings-10 shows selection are advisors in base on commission basis so there is always a big possibility of extra income. Hard working advisors can earn more then expectation, because their is no limit of earning. If a advisors sell more policy he can get more commission so there know limitation on earnings. .
STRENGTH : Multi-channel distribution and one of the largest distribution networks in India.
Implementing Six-Sigma process. Customer centric products and services.
1 Million Policies sold within 3 and half years. Company has maximum number of MDRT as well
as good number of HNI advisors. Training process of the company is very strong. Different plan for different peoples According to the change in surrounding environment like changes in customer requirement.
WEAKNESS: COMPANY does not penetrate on the rural market at a time. There is no plan for the low income group. Fees for the advisor is high than the other company. OPPORTUNITY: Insurance market is very big, where company can expand its horizon in insurance industry. Though good investment and insurance it is easy to top Indian customers. The huge insurance market (77%) is left so company has opportunity to expand our products. To associate with the more number of HNI.
THREATS: ‘OLD HABITS DIE HARD’: Its still difficult task to win the confidence of public towards private company.
The company is facing major threats from LIC -which is
an only government company. Plans for all income groups is not available which can create adverse effect later on the market share of the company.
The market potential for private insurance companies is found to be greater in the long run as most of the Indians are of the opinion that, private insurance companies would be able to perform well in the future. The private and foreign insurance companies have to take immediate steps in appointing more number of agents and/or advisors in addition to the employees as it has been found out that agents are the best channel to reach the general public regarding selling of insurance products. The private and foreign insurance companies have to concentrate on the factors like 'Prevention of Loss', 'Assured Returns' and 'Long term Investment'. They can also focus on an insurance amount of Rs. 1 – 2 lakhs with 'money back policies'. Hence, the market has potential. The private and foreign insurance companies that are taking immediate steps can tap it easily & rapidly.
Today’s environment is very competitive hence to survive in such environment people need both power and wealth. Earlier people prefer to keep their money either on home or keep in bank but today people to see their money grow and today a lot of options are present which are not only attractive but fast growing too. People who can bear high risk for that person the security market are good. There is high risk and high return according to their investment amount. Salaried people wants the security in their savings so for those people who wants high security Insurance and other Government instruments of Investments is better option in which there is a fix growth up to certain amount. Today’s market is so fluctuating for this type of market security is important as well as growth so Insurance is good option for them in which there is return as well as security.
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